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2022-12-31-accounts

DocuSign Envelope ID: 78F3361F-7FCD-4D10-9254-B738C2BB75EB

Charity Registration No. 1170675

THE KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF BIRMINGHAM

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

DocuSign Envelope ID: 78F3361F-7FCD-4D10-9254-B738C2BB75EB

THE KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF BIRMINGHAM

LEGAL AND ADMINISTRATIVE INFORMATION

Charity Trustees

Charity Trustees Dr. M Khoja President Br. T Jivraj Vice president Sis. I Ramji Secretary General Br. H Bandali Deputy Secretary General Br. M A Railey Treasurer Br. H Elias Head of Finance Sis. F Bandali Executive Committee Member Br. H Asaria Executive Committee Member Br. H Jaffer Executive Committee Member Dr. M Janmohamed Executive Committee Member Dr. R Hamer Executive Committee Member Br. S Hassam Executive Committee Member Sis. H Khimji Chairlady Sis. F Damji Ladies Hon. Secretary Dr. R Alidina Chair Building Committee Br. I Janmohamed Chair Education Board Executive Committee Br. H Hudda Registered charity number 1170675 CIO number CE009331 Principal address 17 Clifton Road Balsall Heath Birmingham B12 8SX Auditor Deitch Cooper LLP 1[st] Floor, 3 Hobbs House Harrovian Business Village Bessborough Road Harrow Middlesex HA1 3EX Bankers Barclays Bank Lloyds Bank Habib Bank Unity Trust Bank Charity Bank

DocuSign Envelope ID: 78F3361F-7FCD-4D10-9254-B738C2BB75EB

THE KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF BIRMINGHAM

CONTENTS

Page
Trustees' report 1 - 5
Independent auditor's report 6 - 8
Consolidated statement of financial activities 9
Consolidated statement of financial position
10
Charity statement of financial position 11
Consolidated statement of cash flows 12
Notes to the financial statements 13 - 30

DocuSign Envelope ID: 78F3361F-7FCD-4D10-9254-B738C2BB75EB

THE KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF BIRMINGHAM

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2022

The Trustees present their annual report and the consolidated financial statements for the year ended 31 December 2022. The legal and administrative information page forms a part of this report.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements and comply with the Charity’s governing document, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (effective 1 January 2019).

Objectives and activities for the public benefit

The objective of the charity is to promote Islam and teachings of Islam per the Holy Quran in accordance with the Shia Jaafery faith. The principal objective of the Charity are to arrange religious functions in the Islamic calendar, provision of secular education, social & welfare of its members and establish capital projects to care for its needs.

The charity has various committees operating under the main body of the Executive Committee. Additional objectives of the charity are to arrange religious functions as per the Islamic calendar, provision of secular education, meeting social and welfare needs of its members and establish capital projects to provide for the above stated objectives.

It is the responsibility of the charity to establish high quality programmes and activities through its various subcommittees which promote Islamic values and social responsibility. The charity reaches out to the wider community to promote understanding of its role and partakes in various charitable activities jointly with partner organisations.

In fulfilling its objectives and assisting in planning for the various activities, the Trustees and Executive Committee have given due consideration to the guidance provided by the Charity Commission in relation to public benefit and to its supplementary Public Benefit Guidance on the advancement of Religion.

Strategies

We want to make our Mosque an accessible and welcoming venue where all members, or those who wish to know more about our faith, can gather to learn about religion and worship. The Mosque is open for daily prayers, the Friday prayers being a focus of our activities.

We share the teachings of Islam and the nature of our faith with non-Muslims by participating in various inter-faith forums.

An important part of our faith is charitable giving in accordance with the Islam tenets, and we are pleased to receive funds from members for the purpose of the relief of need and financial hardship of Muslims in the UK, and overseas who have insufficient money to cover their basic needs for shelter, food, clothing, education or who are destitute with no means of support.

An important part of our strategy is community welfare and education. We provide a range of community activities including classes, health initiatives and seminars to achieve this.

Grant Making Policy

Our members give generously to appeals arising from natural calamities affecting various countries around the world. The charity has a close relationship with The World Federation of Khoja Shia Ithna-Asheri Muslim Communities, a UK registered charity number 282303, and is a member of COEJ (Council of European Jamaats), a UK registered charity number 1096111. KSIMC of Birmingham channels donations and contributions to worthwhile causes throughout the world through these two international bodies.

DocuSign Envelope ID: 78F3361F-7FCD-4D10-9254-B738C2BB75EB

THE KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF BIRMINGHAM

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

Achievements and performance

Over the past year, our community centre has seen several significant developments. Following the relaxation of lockdown measures, all programs have resumed in person at the centre. In March, we completed the construction of a transition facility, which will be used while new facilities are being built. Soon after, we began demolishing the old building, and within a few weeks, this process was completed. The opening ceremony of the transition facility was attended by esteemed guests, including the President of the World Federation of Khoja Shia Ithna Asheri Communities, Al Haj Safder Jaffer. We also hosted the first Annual General Meeting in two years, during which new trustees were elected. This year, we held the first in-person Ramadhan after the Covid era, and we saw a record turnout from community members. Our subcommittees returned to functioning as normal, with renewed energy and gusto. A record number of activities for all demographics of the community were held during the year, and we saw a big increase in the number of volunteers stepping up to help manage various activities both within the centre and at other locations. Despite ongoing construction and restricted access into the Syeda Zainab building, we have managed to continue catering to the needs of the community through advanced planning and discussions.

AIC Capital Project

Contracts and LOI : The BC has been working hard from the last AGM to review and verify the contracts in view of the cost-of-living crisis and inflation. We awarded the letter of intent for the demolition, the precast concrete floors and stairs. This was followed by the award of the complete contract to Gravitas directed by Steven Butcher, who constructed the Ghusl-Khana Building.

Diversions of Utilities to Sayyida Zainab Building and Access: To prepare for the demolition and site safety, the utilities (electricity, gas and water) diversion was undertaken to disconnect the supply from Clifton Road and divert them to supply from Runcorn Road. Electricity is fully diverted but the gas and water meters are still awaited. Access to the Jamaat office, Syeda Zainab Building and Muhammadi nursery were diverted in view of the construction works to four other access points including the Moseley Road Nursery access, Moseley Road flat entrance, fire exit of the Syeda Zainab Building and the Runcorn Road entrance and appropriate works were undertaken to make those access ready. Finally, the water to the Cave land is awaited but the works to prepare for the connection has already been undertaken. We are also looking into the electricity supply in the cave to provide any additional requirements.

Demolition and site set-up : This happens after the month of June last year and has completed successfully. This was followed by the site clearance and set up ready for the construction.

Piling : This is the current phase where following the excavation, the piling has been done. This forms the basis on which the piling caps are going to be constructed and the steel beams will be fitted from. Testing of the pilings are currently underway. The anticipated completion is 2 months following which, the steel beams will start to be erected and the building will start to take shape.

Use of Volunteers

Volunteers are an important resource in both our faith and community work. Volunteers are involved in most of our faith and community activities. All our trustees also give of their time freely. We encourage all members of our Centre to be involved in voluntary activities and to share their skills with others. All those volunteers working with projects involving children or other vulnerable groups are CRB checked. The Trustees wish to thank all volunteers for their hard work during the financial year and their ongoing efforts in numerous areas of work.

DocuSign Envelope ID: 78F3361F-7FCD-4D10-9254-B738C2BB75EB

THE KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF BIRMINGHAM

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

Financial review

The results for the year are shown on the Statement of Financial Activities and in the notes to the financial statements. Total income for the year was £1,617,412 (2021: £1,284,327), which includes income from investments of £307,354 (2021: £288,550). As at the year end, total unrestricted funds amounted to £10,689,439 (2021: £9,797,782), while total restricted funds amounted to £1,782,595 (2021: £1,919,429).

The charity's perpetual existence ensures that it will never dissolve, and thus, reserves are carried over from each fiscal year. The Trustees' objective is to maintain unrestricted reserves at a level that is equivalent to approximately three months of the charity's unrestricted charitable expenses. The Trustees believe that this amount is adequate to cover unexpected expenditures and fund other recurring costs associated with governance.

The Trustees and Executive Committee, as well as members of subcommittees, are neither remunerated nor paid any expenses. The restricted funds all relate to items where the donors have specified its intended use or recipient. Where deficits occur, these are carried forward to the following year.

Risk management

The trustees have assessed the risks the charity faces, the nature of those risks, the likelihood of the risks happening, and the measures taken to manage them. The trustees review the risks at their meetings and are satisfied that systems are in place to manage any risks that may be identified. Adequate insurance cover is in place and the finances of the Mosque are kept under review. Appropriate Criminal Records Bureau (CRB) checks, supported by regularly reviewed policies, are made for all those who work with children or other vulnerable groups within the Charity’s activities.

Plans for future periods

The charity is rapidly outgrowing its current facilities based on a growth forecast using the census and other data. As has been widely communicated, the Charity is on the verge of commencing the physical phase of the Al-Abbas Building Project. Further details are published as part of the Building Report.

DocuSign Envelope ID: 78F3361F-7FCD-4D10-9254-B738C2BB75EB

THE KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF BIRMINGHAM

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

Structure, governance and management

The Charity is a Charitable Incorporated Organisation registered by a governing document dated 09 December 2016.

The Trustees who served during the year and up to the date of signature of the financial statements were:

M Khoja (Appointed 27 March 2022)
T Jivraj (Appointed 27 March 2022)
I Ramji
H Bandali
M Railey
S Hassam
F Damji (Appointed 28 April 2022)
R Alidina (Appointed 28 April 2022)
R Hamer (Appointed 28 April 2022)
F Bandali (Appointed 18 April 2022)
I Janmohamed (Appointed 18 April 2022)
M Janmohamed (Appointed 18 April 2022)
H Asaria (Appointed 24 November 2022)
H Khimji (Appointed 28 April 2022)
H Jaffer (Appointed 18 April 2022)
H Hudda (Appointed 28 April 2022) (Resigned 6 February 2023)
S Naqvi (Appointed 27 April 2022) (Resigned 27 October 2022)
G Datoo (Resigned 27 April 2022)
R Sachedina (Resigned 27 April 2022)
S Fazal (Resigned 27 April 2022)
M Kassamali (Resigned 27 April 2022)
T Bhanji (Resigned 27 April 2022)
S Zaidi (Resigned 27 April 2022)
H Elias (Appointed 14 April 2023)

The Trustees are appointed in accordance with the constitution at the Annual General Meeting, or by the Trustees should a vacancy arise during the year.

The Trustees meet regularly to manage strategy and the organisation. The day-to-day operations for the different educational activities are delegated to nominated individuals. The management of the investment properties is undertaken by Khoja Shia Ithna-Asheri Muslim Community (Baquir) Limited and Khoja Shia Ithna-Asheri Muslim Community (Jaafery) Limited, wholly owned subsidiaries of the charity.

None of the Trustees or Executive Committee have any beneficial interest in any member of the group.

DocuSign Envelope ID: 78F3361F-7FCD-4D10-9254-B738C2BB75EB

THE KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF BIRMINGHAM

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

Statement of Trustees' responsibilities

The Trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources of the Charity for that year.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provisions of the governing document.

The Trustees are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditor

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The Trustees' annual report was approved and signed on behalf of the Board of Trustees.

M Khoja Trustee

26 May 2023

DocuSign Envelope ID: 78F3361F-7FCD-4D10-9254-B738C2BB75EB

THE KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF BIRMINGHAM

INDEPENDENT AUDITOR’S REPORT

TO THE TRUSTEES OF THE KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF BIRMINGHAM

Opinion

We have audited the financial statements of the Khoja Shia Ithna-Asheri Muslim Community of Birmingham (the 'charity') and its group for the year ended 31 December 2022, which comprises the consolidated statement of financial activities, the consolidated statement of financial position, the statement of financial position, the consolidated statement of cash flows, and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of lreland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (lSAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

ln auditing the financial statements, we have concluded that the use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

DocuSign Envelope ID: 78F3361F-7FCD-4D10-9254-B738C2BB75EB

THE KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF BIRMINGHAM

INDEPENDENT AUDITOR’S REPORT (CONTINUED)

TO THE TRUSTEES OF THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF BIRMINGHAM

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the statement of Trustees' responsibilities, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. ln preparing the financial statements, the Trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the financial statements to material misstatements including obtaining an understanding of how fraud might occur by making enquiries of management and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

DocuSign Envelope ID: 78F3361F-7FCD-4D10-9254-B738C2BB75EB

THE KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF BIRMINGHAM

INDEPENDENT AUDITOR’S REPORT (CONTINUED)

TO THE TRUSTEES OF THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF BIRMINGHAM

Auditor's responsibilities for the audit of the financial statements (continued)

To address the risk of fraud through management bias and override of controls we performed the following procedures:

In response to the risk of irregularities and non-compliance with laws and regulations we designed procedures which included, but were not limited to, agreeing financial statement disclosures to underlying supporting documentation and remaining alert for actual and potential litigation and claims during our other audit procedures. We did not identify any key audit matters relating to irregularities, including fraud.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in audit procedures performed and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. Auditing standards also limit the audit procedures required to identify noncompliance with laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council's website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (second edition – October 2019)” in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with current United Kingdom Generally Accepted Accounting Practice.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this, or for the opinions we have formed.

Deitch Cooper LLP 30 May 2023
Statutory Auditor 1stFloor, 3 Hobbs House
Harrovian Business Village
Bessborough Road
Harrow
Middlesex
HA1 3EX

Deitch Cooper LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.

DocuSign Envelope ID: 78F3361F-7FCD-4D10-9254-B738C2BB75EB

THE KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF BIRMINGHAM

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2022

|Unrestricted
Funds
2022
Notes
£
Income from:
Donations and legacies
4
354,909
Charitable activities
5
252,468
Other trading activities
6
110,425
Investments
7
307,354
Other income
1,098
Total income
1,026,254
Expenditure on:
Raising funds
8
258,494
Charitable activities
9,10
1,095,072
<br>**Total expenditure**<br>1,353,566<br>Revaluation of<br>investment properties<br>**14**<br>667,326<br>**Net incoming resources before**<br>**transfers**<br>340,014<br>Gross transfers between funds**19**<br>551,643<br>**Net income/(expenditure for the**<br>**year/**<br>**Net movement in funds**<br>891,657<br>Fund balances at 1 January 2022:<br>As originally reported<br>9,797,782<br>Effect of change in accounting policy<br>-<br>As restated<br>9,797,782<br>**Fund balances at 31**<br>**December 2022**<br>10,689,439|**Unrestricted**<br>**Funds**<br>**2022**<br>**Notes**<br>**£**<br>**Income from:**<br>Donations and legacies<br>**4**<br>354,909<br>Charitable activities<br>**5**<br>252,468<br>Other trading activities<br>**6**<br>110,425<br>Investments<br>**7**<br>307,354<br>Other income<br>1,098<br>**Total income**<br>1,026,254<br>**Expenditure on:**<br>Raising funds<br>**8**<br>258,494<br>Charitable activities<br>**9,10**<br>1,095,072<br>
Total expenditure
1,353,566
Revaluation of
investment properties
14
667,326
Net incoming resources before
transfers
340,014
Gross transfers between funds19
551,643
Net income/(expenditure for the
year/
Net movement in funds
891,657
Fund balances at 1 January 2022:
As originally reported
9,797,782
Effect of change in accounting policy
-
As restated
9,797,782
Fund balances at 31
December 2022
10,689,439|Unrestricted
Funds
2022
Notes
£
Income from:
Donations and legacies
4
354,909
Charitable activities
5
252,468
Other trading activities
6
110,425
Investments
7
307,354
Other income
1,098
Total income
1,026,254
Expenditure on:
Raising funds
8
258,494
Charitable activities
9,10
1,095,072
`
Total expenditure
1,353,566
Revaluation of
investment properties
14
667,326
Net incoming resources before
transfers
340,014
Gross transfers between funds19
551,643
Net income/(expenditure for the
year/
Net movement in funds
891,657
Fund balances at 1 January 2022:
As originally reported
9,797,782
Effect of change in accounting policy
-
As restated
9,797,782
Fund balances at 31
December 2022
10,689,439|Restricted
Funds
2022
£
560,178
-
30,980
-
-
591,158
-
176,349
176,349
-
414,809
(551,643)
(136,834)|Total
Unrestricted
Funds
Funds

2022
2021
£
£
915,087
333,405
252,468
257,209
141,405
53,500
307,354
288,550
1,098
-
1,617,412
932,664
258,494
101,514
1,271,421
900,676
1,529,915
1,002,190
667,326
-
754,823
(69,526)
-
219,858
754,823
150,332|Total
Unrestricted
Funds
Funds

2022
2021
£
£
915,087
333,405
252,468
257,209
141,405
53,500
307,354
288,550
1,098
-
1,617,412
932,664
258,494
101,514
1,271,421
900,676
1,529,915
1,002,190
667,326
-
754,823
(69,526)
-
219,858
754,823
150,332|Restricted
Funds
as restated
2021
£
351,663
-
-
-
-
351,663
-
246,803
246,803
-
104,860
(219,858)
(114,998)|Total
Funds
as restated
2021
£
685,068
257,209
53,500
288,550
-| |---|---|---|---|---|---|---|---| ||||||||1,284,327| ||||||||101,514| ||||||||1,147,479| ||||||||1,248,993| ||||||||-| ||||||||35,334
-| ||||||||35,334| |||9,797,782
-|1,858,727
60,702|11,656,509
60,702|9,647,450
-|1,946,220
88,207|11,593,670
88,207| |||9,797,782
10,689,439|1,919,429
1,782,595|11,717,211
12,472,034|9,647,450
9,797,782|2,034,427
1,919,429|11,681,877| ||||||||11,717,211|

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

DocuSign Envelope ID: 78F3361F-7FCD-4D10-9254-B738C2BB75EB

THE KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF BIRMINGHAM

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2022

Notes
Fixed assets
Tangible assets
13
Investment properties
14
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due
within one year
17
Net current assets
Total assets less current liabilities
Creditors: amounts falling due
after more than one year
18
Net assets
Income funds
Restricted funds
19
Unrestricted funds
Designated funds
20
General unrestricted funds
20
Revaluation reserve
20
Total charity funds		 2022

£
£
7,045,889
5,642,189
12,688,078
301,308
2,517,220
2,818,528
(284,572)
2,533,956
15,222,034
(2,750,000)
12,472,034
1,782,595
4,552,244
3,151,071
2,986,124
10,689,439
12,472,034		 2021
as restated
£
£
6,792,146
3,533,239
10,325,385
312,897
2,510,859
2,823,756
(242,095)
2,581,661
12,907,046
(1,189,835)
11,717,211
1,919,429
3,998,774
2,646,066
3,152,942
9,797,782
11,717,211

These accounts were approved by the Board of Trustees on 30 May 2023 and were signed on its behalf by:

M Khoja I Ramji Trustee Trustee

DocuSign Envelope ID: 78F3361F-7FCD-4D10-9254-B738C2BB75EB

THE KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF BIRMINGHAM

CHARITY STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2022

Total charity funds
Notes
Fixed assets
Tangible assets
13
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due
within one year
17
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
19
Unrestricted funds
Designated funds
20
General unrestricted funds
20
Revaluation reserve
20		 2022
£
1,109,032
2,139,824
3,248,856
(227,515)
4,552,244
718,708
2,986,124		 8,257,076
10,039,671
£
7,018,330
3,021,341
10,039,671
1,782,595		 8,079,035
9,998,464
2021
as restated
£
£
6,747,578
1,063,720
2,286,957
3,350,677
(99,791)
3,250,886
9,998,464
1,919,429
3,998,774
927,319
3,152,942		 8,079,035
9,998,464
2021
as restated
£
£
6,747,578
1,063,720
2,286,957
3,350,677
(99,791)
3,250,886
9,998,464
1,919,429
3,998,774
927,319
3,152,942
9,998,464
8,079,035
1,919,429
9,998,464

These accounts were approved by the Board of Trustees on 30 May 2023 and were signed on its behalf by:

M Khoja Trustee

I Ramji Trustee

DocuSign Envelope ID: 78F3361F-7FCD-4D10-9254-B738C2BB75EB

THE KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF BIRMINGHAM

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2022

2022
Notes
£
Cash flows from operating activities
Cash generated from/(absorbed by)
operations
25
Investing activities
Purchase of tangible fixed assets
(552,534)
Purchase of investment property
(1,441,624)
Investment income received
307,354
Net cash generated from/(used in)
investing activities
Financing activities
Proceeds from new bank loans
2,750,000
Repayment of bank loans
(1,312,592)
Net cash used in financing activities
Net (decrease)/increase in cash and
cash equivalents
Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year
 £
255,757

(1,686,804)
1,437,408
6,361
2,510,859
2,517,220		 2021
£
£
(198,593)
(286,600)
-
288,550
1,950
-
(82,798)
(82,798)
(279,441)
2,790,300
2,510,859

DocuSign Envelope ID: 78F3361F-7FCD-4D10-9254-B738C2BB75EB

THE KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF BIRMINGHAM

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

Charity information

The Khoja Shia Ithna-Asheri Muslim Community of Birmingham (“the charity”) is a Charitable Incorporated Organisation registered in England and Wales. The charity is a UK registered charity. The principal place of business is 17 Clifton Street, Balsall Heath, Birmingham, B12 8SX.

1.1 Accounting convention

The accounts have been prepared in accordance with the charity's constitution, the Charities Act 2011 and the Charities SORP “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (second edition – October 2019)”. The charity is a Public Benefit Entity as defined by FRS 102.

The accounts have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 (effective 1 January 2019) rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The accounts are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Basis of consolidation

The consolidated financial statements include the results for the year, of the charity and all associated companies that the group controls and their net assets at the year-end date. Transactions between associated undertakings are eliminated on consolidation. Control is the power to govern the financial and operating policies of the associated company so as to obtain benefits from its activities.

The group financial statements include the financial statements of the Khoja Shia Ithna-Asheri Muslim Community of Birmingham, Khoja Shia Ithna-Asheri Muslim Community (Baquir) Limited and Khoja Shia IthnaAsheri Muslim Community (Jaafery) Limited. A separate Statement of Financial Activities, or income and expenditure account, for the parent charity itself is not presented.

1.3 Going concern

The Trustees have considered the levels of funds held and the level of reserves for each member of the group. At the time of approving the accounts, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus, the Trustees continue to adopt the going concern basis of accounting in preparing the accounts.

1.4 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts.

1.5 Incoming resources

All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

Voluntary income is received by way of grants, donations and gifts and is included in full in the statement of financial activities when the charity becomes unconditionally entitled to the income. If the terms of a grant impose conditions the grant is only recognised as income when the conditions are met. Income received before the revenue recognition criteria are met are recognised as a liability.

DocuSign Envelope ID: 78F3361F-7FCD-4D10-9254-B738C2BB75EB

THE KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF BIRMINGHAM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies (continued)

1.6 Resources expended

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which it relates.

Raising funds comprise the costs associated with attracting voluntary income and for costs incurred for the investment properties.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

1.7 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold property Straight line over 25 years Fixtures and fittings 25% straight line Plant and equipment 25% straight line Motor vehicles 25% straight line

Freehold land and assets in the course of construction are not depreciated.

Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of tangible assets, including Burial land, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment loss (if any).

1.8 Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially measured at cost and subsequently measured using the fair value model and stated at its fair value as at the reporting end date. The net gain or loss on revaluation is recognised in net income/(expenditure) for the year.

1.9 Retirement benefits

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.10 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

1.11 Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

DocuSign Envelope ID: 78F3361F-7FCD-4D10-9254-B738C2BB75EB

THE KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF BIRMINGHAM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies (continued)

1.12 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS102 to all of its financial instruments.

Financial instruments are recognised in the charity’s statement of financial position when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic Financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Financial liabilities classified as payable within one year are not amortised.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

2.a. Change in accounting policy

Burial land

The charity operates a Burial scheme for contributing members. To operate the scheme the charity has previously purchased plots of burial land. The accounting policy was formerly to initially measure the purchase of Burial land at transaction price and subsequently carry the Burial land at amortised cost within prepayments. The movement in the prepayment has been recognised as expenditure of the Burial fund. The new accounting policy is to recognise Burial land in accordance with the charity’s accounting policy for land. The new accounting policy measures the purchase of Burial land at transaction price and subsequently carries the Burial land at historic cost less amortisation and impairment within tangible assets. The amortisation losses are expenditure of the Burial fund. This policy has been applied retrospectively and the financial statement lines for Tangible assets and Debtors of the prior period have been adjusted to reflect application of the new accounting policy. There is no effect on total assets or income and expenditure for the change in accounting policy.

Third party collections

The charity collects donations for onward transmission to third parties. The accounting policy was formerly to recognise some donations within creditors falling due within one year as amounts owed to third parties. The new accounting policy is to recognise the receipts as income of the charity and the payments to third parties as expenditure of the charity and treat the balance owing to third parties as restricted funds. This is to ensure compliance with the Charities SORP “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). This policy has been applied retrospectively and the financial statement lines for Creditors and Restricted funds of the prior period have been adjusted to reflect application of the new accounting policy. The effect of the adjustment is to increase the balance on restricted funds and reduce creditors due within one year by £123,541.

DocuSign Envelope ID: 78F3361F-7FCD-4D10-9254-B738C2BB75EB

THE KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF BIRMINGHAM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

2.b Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Estimates include the valuation of tangible assets and investment properties. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3.a Income Earned from other Activities

The following entities, incorporated in England and Wales, form part of the group:

Control
Khoja Shia Ithna-Asheri Muslim Community (Baquir) Limited (company 100 % control of assets and
number 06391353) operations
Khoja Shia Ithna-Asheri Muslim Community (Jaafery) Limited (company 100 % control of assets and
number 06391478) operations
Khoja Shia Ithna-Asher Muslim Khoja Shia Ithna-Asher Muslim Khoja Shia Ithna-Asher Muslim Khoja Shia Ithna-Asher Muslim
Community (Baquir) Limited Community (Jaafery) Limited
2022 2021 2022 2021
£ £ £ £
Total income 447,286 437,399 105,425 93,488
Total expenditure 401,677 281,403 104,744 92,909
Net gains on investments 667,326 - - -
Net income for the year 712,935 155,996 681 579
The assets and liabilities of
the subsidiary were:
Assets 6,082,695
 3,969,516 23,635 17,507
Liabilities (3,627,909) (2,227,665) (46,056) (40,609)
Capital and Reserves 2,454,786
 1,741,851 (22,421) (23,102)
`

DocuSign Envelope ID: 78F3361F-7FCD-4D10-9254-B738C2BB75EB

THE KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF BIRMINGHAM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

3.b Financial performance of the charity

The Financial activities shown in the consolidated financial statements include those of the charity’s associates. A summary of the financial activities undertaken by the charity is set out below:

Income
Expenditure on raising funds
Expenditure on charitable activities
Other gains and losses
Net income for the year / Net movement in funds
Total funds brought forward
Total funds carried forward		 2022
£
1,125,700
-
1,084,493
-
41,207
9,998,464
10,039,671		 2021
£
897,944
-
1,019,184
-
(121,240)
10,119,704
9,998,464

4 Donations and legacies

Unrestricted
Restricted
funds
funds
2022
2022
£
£
Donations and gifts
Burial donations
66,053
-
Third party collections
-
210,486
General donations
61,427
-
Gift aid
83,902
-
Hardship funds
9,620
-
AIC project
332,925
Nyaz
39,272
-
Seniors’ donations
-
Subscriptions
94,635
-
Sadka
-
16,766
COVID 19 support fund
-
-
Grants
Government grants
-
-
354,909
560,178		 Total Unrestricted
Restricted
funds
funds
2022
2021
2021
£
£
£
66,053
20,895
-
210,486
-
174,184
61,427
103,949
-
83,902
40,120
-
9,620
33,408
-
332,925
-
161,357
39,272
14,362
-
-
-
270
94,635
91,313
-
16,766
-
15,852
-
1,858
-
-
27,500
-
915,087
333,405
351,663		 Total
2021
£
20,895
174,184
103,949
40,120
33,408
161,357
14,362
270
91,313
15,852
1,858
27,500
685,068

Government grants in the prior year comprises £20,000 relating to an NHS project and £7,500 from Birmingham City Council.

DocuSign Envelope ID: 78F3361F-7FCD-4D10-9254-B738C2BB75EB

THE KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF BIRMINGHAM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

4 Donations and legacies (continued)

Contribution of volunteers

The Charity benefits greatly from the involvement and support of many volunteers who assist with a wide range of charitable and support activities. In accordance with FRS102 and the Charities SORP (FRS102) the economic contribution of general volunteers is not recognised in the financial statements.

5 Charitable activities

Unrestricted
Funds
Total
Funds
Unrestricted
Funds
2022
2022
2021
£
£
£
Secular Education fees
43,264
43,264
46,280
Madressa fees
30,191
30,191
28,574
Nursery fees
108,505
108,505
114,220
Burial Scheme
70,508
70,508
68,135
252,468
252,468
257,209
Other trading activities
Unrestricted
Funds
Restricted
Funds
Total
Funds
Unrestricted
Funds
Restricted
Funds
2022
2022
2022
2021
2021
£
£
£
£
£
Advertising
2,352
-
2,352
1,275
-
Halls and Majlis
13,541
-
13,541
10,943
-
Senior citizen activities
-
30,980
30,980
-
-
Subcommittees
94,532
-
94,532
41,282
-
110,425
30,980
141,405
53,500
-		 Total
Funds
2021
£
46,280
28,574
114,220
68,135
257,209
Total
Funds
2021
£
1,275
10,943
-
41,282
53,500

6 Other trading activities

7 Investment income

Rental income
Interest receivable		 Unrestricted
Funds
2022
£
304,042
3,312
307,354		 Total
Funds
2022
£
304,042
3,312
307,354		 Unrestricted
Funds
2021
£
285,840
2,710
288,550		 Total
Funds
2021
£
285,840
2,710
288,550

DocuSign Envelope ID: 78F3361F-7FCD-4D10-9254-B738C2BB75EB

THE KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF BIRMINGHAM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

8 Raising funds

9

 Charitable activities
Religious
Education
£
£
Staff costs
127,861
102,577
Depreciation and
impairment
258,379
7,738
Charitable expenditure
301,544
46,803
Burial costs
-
-
687,784
157,118
Share of support costs
(see note 10)
344,115
27,486
Share of governance
costs (see note 10)
4,500
2,325
1,036,399
186,929
Unrestricted
Restricted
funds
funds
2022
2022
£
£
Investment property
expenditure
Share of governance costs
2,575
-
Property management
agents
9,970
-
Other fundraising costs
34,442
-
Depreciation and
impairment
10,160
-
Share of support costs
(see note 10)
201,347
-

258,494
-
Fundraising and publicity
258,494
-		 Burial
Total
2022
Total
2021
£
£
£
-
230,438
201,946
22,512
288,629
290,972
-
348,347
444,697
25,581
25,581
40,481
48,093
892,995
978,096
-
371,601
162,070
-
6,825
7,313
48,093
1,271,421
1,147,479
Total Unrestricted
Restricted
Total
funds
funds
2022
2021
2021
2021
£
£
£
£
2,575
1,125
-
1,125
9,970
-
-
-
34,442
22,377
-
22,377
10,160
10,218
-
10,218
201,347
67,794
-
67,794
258,494
101,514
-
101,514
258,494
101,514
-
101,514		 Total
2021
£
201,946
290,972
444,697
40,481
Total
2021
£
1,125
-
22,377
10,218
67,794
101,514
101,514
978,096
162,070
7,313

DocuSign Envelope ID: 78F3361F-7FCD-4D10-9254-B738C2BB75EB

THE KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF BIRMINGHAM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

9 Charitable activities (continued)

Religious
£
Analysis by fund
Unrestricted funds
860,050
Restricted funds
176,349
1,036,399
For the year ended 31 December 2021
Religious
£
Staff costs
103,975
Depreciation and
impairment
257,506
Charitable expenditure
407,450
Burial costs
-
768,931
Share of support costs
(see note 10)
132,633

Share of governance
cost (see note 10)
4,500

906,064
Analysis by fund
Unrestricted funds
659,261
Restricted funds
246,803
906,064		 Education
£
186,929
-
186,929
Education
£
97,971
7,738
37,247
-
142,956
29,437
2,813
175,206
175,206
-
175,206		 Burial
£
48,093
-
48,093
Burial
£
-
25,728
-
40,481
66,209
-
-
66,209
66,209
-
66,209		 Total
2022
£
1,095,072
176,349
1,271,421
Total
2021
£
201,946
290,972
444,697
40,481
978,096
162,070
7,313
1,147,479
900,676
246,803
1,147,479

DocuSign Envelope ID: 78F3361F-7FCD-4D10-9254-B738C2BB75EB

THE KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF BIRMINGHAM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

10 Support costs

Operating lease charges
Premises costs
Investment properties
Finance costs
Insurance
Legal and professional
Office expenses
Sub-committee
Bank charges
Promotion and marketing
Bad and doubtful debts
Governance costs
Audit fees
Analysed between
Fundraising
Share of support costs

Governance costs

Charitable activities
Share of support costs

Governance costs
 Support
costs
2022
£
3,112
147,811
39,794
133,808
20,651
39,140
10,662
139,514
20,533
918
17,005
9,400
582,348
201,347

2,575
371,601
6,825
582,348		 Total
2022
£
3,112
147,811
39,794
133,808
20,651
39,140
10,662
139,514
20,533
918
17,005
9,400
582,348
201,347
2,575
371,601
6,825
582,348		 Support
costs
2021
£
2,569
47,194
42,448
39,960
15,892
10,290
21,108
44,072
5,626
705
-
8,438
238,302

67,794
1,125

162,070
7,313
238,302		 Total Basis of allocation
2021
£
2,569Usage
47,194 Directly attributable
42,448Directly attributable
39,960Directly attributable
15,892Directly attributable
10,290Directly attributable
21,108Usage
44,072Directly attributable
5,626Usage
705Usage
- Directly attributable
8,438Governance
238,302
67,794
1,125
162,070
7,313
238,302

11 Trustees

None of the Trustees (nor any persons connected with them) received any remuneration or benefits from the charity during the year (2021: £nil).

DocuSign Envelope ID: 78F3361F-7FCD-4D10-9254-B738C2BB75EB

THE KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF BIRMINGHAM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

12 Employees

Number of employees

The average monthly number of employees during the year was:

Nursery
Resident Alim
Caretaker
Others
Employment costs
Wages and salaries
Staff pension costs		 2022
Number
12
1
1
5
19
2022
£
229,956
482
230,438		 2021
Number
12
1
1
4
18
2021
£
201,302
644
201,946

There were no employees whose annual remuneration was £60,000 or more.

13 Tangible fixed assets - The group

Cost
At 1 January 2022
Additions
At 31 December 2022
Depreciation and
impairment
At 1 January 2022
Depreciation charged in
the year
Impairment losses
At 31 December 2022
Carrying amount
At 31 December 2022
At 31 December 2021		 Freehold land
and buildings
£
7,322,841
-
7,322,841
2,433,322
253,459
-
2,686,781
4,636,060
4,889,519		 Assets under Fixture, fittings
construction and equipment
£
£
1,640,656
454,168
551,643
891
2,192,299
455,059
-
394,841
-
22,818
-
-
-
417,659
2,192,299
37,400
1,640,656
59,329		 Motor
Burial land
vehicles
£
£
18,630
388,218
-
-
18,630
388,218
18,630
185,576
-
-
-
22,512
18,630
208,088
-
180,130
-
202,642		 Total
£
9,824,513
552,534
10,377,047
3,032,369
276,277
22,512
3,331,158
7,045,889
6,792,146

DocuSign Envelope ID: 78F3361F-7FCD-4D10-9254-B738C2BB75EB

THE KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF BIRMINGHAM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

13.a Tangible fixed assets – The charity

Freehold land
and buildings
£
Cost
At 1 January 2022
7,322,841
Additions
-
At 31 December 2022
7,322,841
Depreciation and
impairment
At 1 January 2022
2,433,322
Depreciation charged in
the year
253,459
Impairment losses
-
At 31 December 2022
2,686,781
Carrying amount
At 31 December 2022
4,636,060
At 31 December 2021
4,889,519		 Assets under
construction
£
1,640,656
551,643
2,192,299
-
-
-
-
2,192,299
1,640,656		 Fixture and
fittings
£
308,955
-
308,955
294,194
4,920
-
299,114
9,841
14,761		 Motor
Burial land
Total
vehicles
£
£
£
18,630
388,218
9,679,300
-
-
551,643
18,630
388,218 10,230,943
18,630
185,576
2,931,722
-
-
258,379
-
22,512
22,512
18,630
208,088
3,212,613
-
180,130
7,018,330
-
202,642
6,747,578

If Freehold land and buildings of the charity and group were carried at cost less depreciation instead of valuation the carrying amount at the reporting date would be £1,649,936 (2021: £1,736,577).

The carrying amount of the Burial land is impaired to the historic cost of the unused burial plots at each reporting date. Impairment losses on the burial plots are recognised as Burial fund expenditure within unrestricted funds.

14 Investment property - The group

Fair value
At 1 January 2022
Additions through external acquisition
Net gains and losses through fair value adjustments
At 31 December 2022		 2022
£
3,533,239
1,441,624
667,326
5,642,189

Investment property comprises freehold property held for rental and capital appreciation purposes. The fair value of the investment property has been arrived at from reviewing market evidence from sources not connected with the charity. The valuation is by the Trustees on an open market value basis.

DocuSign Envelope ID: 78F3361F-7FCD-4D10-9254-B738C2BB75EB

THE KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF BIRMINGHAM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

15
Debtors - The group
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
15.a Debtors - The charity
Amounts falling due within one year:
Trade debtors
Amounts due from fellow group undertakings
Other debtors
Prepayments and accrued income
Amounts falling due after one year:
Amounts due from fellow group undertakings
Total debtors
Amounts due from fellow group undertakings are interest free.
16
Loans and overdrafts
Bank loans (secured)
Payable within one year
Payable after one year		 2022
£
74,321
211,793
15,194
301,308
2022
£
44,060
86,085
211,793
14,094
356,032
753,000
1,109,032
2022
£
2,750,000
-
2,750,000		 2021
£
67,111
91,807
153,979
312,897
2021
£
55,789
73,185
91,806
10,940
231,720
832,000
1,063,720
2021
£
1,312,592
122,757
1,189,835

Bank loans are repayable other than by instalments. A market rate of interest is charged until the loan is repaid.

DocuSign Envelope ID: 78F3361F-7FCD-4D10-9254-B738C2BB75EB

THE KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF BIRMINGHAM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

17 Creditors: amounts falling due within one year - The group

Notes
Bank loans (secured)
15
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 2022
£
-
1,024
105,206
112,240
66,102
284,572		 2021
£
122,757
2,183
24,958
82,859
9,338
242,095

The bank loans are secured by way of charges over certain investment properties owned by the group.

17.a Creditors: amounts falling due within one year - The charity

Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 2022
£
522
100,036
75,622
51,335
227,515		 2021
£
-
24,765
70,113
4,913
99,791

18 Creditors: amounts falling due after more than one year - The group

Notes 2022 2021
£ £
Bank loans (secured) 15 2,750,000 1,189,835

The bank loans are secured by way of charges over certain investment properties owned by the group.

DocuSign Envelope ID: 78F3361F-7FCD-4D10-9254-B738C2BB75EB

THE KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF BIRMINGHAM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

19 Restricted funds – group and charity

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at
1 Jan 2022
£
AIC Project
1,805,539
Senior citizens
34,305
Third party collections
62,057
Sadka
17,528
1,919,429
ear ended 31 December 2021
Balance at
1 Jan 2021
£
AIC Project
1,864,040
Senior citizens
36,219
Third party collections
94,492
Sadka
39,676
2,034,427		 Movement in funds
Income Expenditure
£
£
332,925
-
30,980
(49,946)
210,486
(104,803)
16,767
(21,600)
591,158
(176,349)
Movement in funds
Income Expenditure
£
£
161,357
-
270
(2,184)
174,184
(206,619)
15,852
(38,000)
351,663
(246,803)		 Transfers Balance at 31
Dec 2022
£
£
(551,643)
1,586,821
-
15,339
-
167,740
-
12,695
(551,643)
1,782,595
Transfers Balance at 31
Dec 2021
£
£
(219,858)
1,805,539
-
34,305
-
62,057
-
17,528
(219,858)
1,919,429		 Transfers Balance at 31
Dec 2022
£
£
(551,643)
1,586,821
-
15,339
-
167,740
-
12,695
(551,643)
1,782,595
Transfers Balance at 31
Dec 2021
£
£
(219,858)
1,805,539
-
34,305
-
62,057
-
17,528
(219,858)
1,919,429
1,919,429

Year ended 31 December 2021

19.a Description of restricted funds

AIC Project – a construction project for the design and build of the Mosque, Imambara and associated works.

Senior citizens – a specific fund for use on activities for senior citizens.

Third party collections - religious collections specifically collected on behalf of The World Federation and The Council of European Jamaats

Sadka – a specific fund for charitable giving to support hardship in communities

Reason for the transfers

The value of assets under construction purchased during the year has been transferred from the AIC Project restricted fund to the Building fund, within designated funds, since the asset has been purchased from restricted donations but the asset is held for designated purposes and not a restricted purpose.

DocuSign Envelope ID: 78F3361F-7FCD-4D10-9254-B738C2BB75EB

THE KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF BIRMINGHAM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

20 Unrestricted funds - group

Movement in funds Movement in funds Movement in funds
Balance at Income Expenditure Revaluation Transfers Balance at
1 Jan 2022 gain/(loss) 31 Dec 2022
£ £ £ £ £ £
Designated Funds
Equipment fund 17,720 -
-		 - - 17,720
Burial fund 603,820 136,561
48,093		 - - 692,288
Building fund 3,377,234 -
86,641		 - 551,643 3,842,236
Sub-total designated funds 3,998,774 136,561
134,734		 - 551,643 4,552,244
General funds 2,646,066 889,693
1,052,014		 667,326 - 3,151,071
Revaluation reserve 3,152,942 -
166,818		 - - 2,986,124
9,797,782 1,026,254 1,353,566
667,326		 551,643 10,689,439
Year ended 31 December 2021
Movement in funds
Balance at Income Expenditure Revaluation Transfers Balance at
1 Jan 2021 gain/(loss) 31 Dec 2021
£ £ £ £ £ £
Designated Funds
Equipment fund 17,720 -
-		 - - 17,720
Burial fund 581,000 89,030
66,209		 - - 603,820
Building fund 3,244,018 -
86,642		 219,858 3,377,234
Sub-total designated funds 3,842,738 89,030
152,851		 - 219,858 3,998,774
General funds 2,485,826 843,635
683,395		 - - 2,646,066
Revaluation reserve 3,318,886 -
165,944		 - - 3,152,942
9,647,450 932,665 1,002,190
-		 219,858 9,797,782

20.a Unrestricted funds - charity

Designated Funds
Equipment fund
Burial fund
Building fund
Sub-total designated funds
General funds
Revaluation reserve
 Balance at
1 Jan 2022
£
17,720
603,820
3,377,234
3,998,774
927,319
3,152,942
8,079,035		 Movement in funds
Income Expenditure Revaluation
gain/(loss)
Transfers
Balance at
31 Dec 2022
£
£
£
£
£
-
-
-
-
17,720
136,561
48,093
-
-
692,288
-
86,641
-
551,643
3,842,236
136,561
134,734
-
551,643
4,552,244
397,981
606,592
-
-
718,708
-
166,818
-
-
2,986,124
534,542908,144
-
551,643
8,257,076		 Movement in funds
Income Expenditure Revaluation
gain/(loss)
Transfers
Balance at
31 Dec 2022
£
£
£
£
£
-
-
-
-
17,720
136,561
48,093
-
-
692,288
-
86,641
-
551,643
3,842,236
136,561
134,734
-
551,643
4,552,244
397,981
606,592
-
-
718,708
-
166,818
-
-
2,986,124
534,542908,144
-
551,643
8,257,076
8,257,076

DocuSign Envelope ID: 78F3361F-7FCD-4D10-9254-B738C2BB75EB

THE KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF BIRMINGHAM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

20.a Unrestricted funds – charity (continued)

Year ended 31 December 2021

Designated Funds
Equipment fund
Burial fund
Building fund
Sub-total designated funds
General funds
Revaluation reserve		 Balance at
1 Jan 2021
£
17,720
581,000
3,244,018
3,842,738
923,655
3,318,886
8,085,279		 Movement in funds
Income Expenditure Revaluation
gain/(loss)
TransfersBalance at 31
Dec 2021
£
£
£
£
£
-
-
-
-
17,720
89,030
66,209
-
-
603,820
-
86,642
-
219,858
3,377,234
89,030
152,851
-
219,858
3,998,774
457,251
453,587
-
-
927,319
-
165,944
-
-
3,152,942
546,281772,382
-
219,858
8,079,035		 Movement in funds
Income Expenditure Revaluation
gain/(loss)
TransfersBalance at 31
Dec 2021
£
£
£
£
£
-
-
-
-
17,720
89,030
66,209
-
-
603,820
-
86,642
-
219,858
3,377,234
89,030
152,851
-
219,858
3,998,774
457,251
453,587
-
-
927,319
-
165,944
-
-
3,152,942
546,281772,382
-
219,858
8,079,035
8,079,035

20.b Description of unrestricted funds

Equipment fund - donations designated for the purchase of equipment.

Burial – subscriptions and donations designated for the use of future burial needs and burial expenditure.

Building fund – a specific fund relating to the purchase of freehold land and buildings used by the charity.

General funds – funds for use at the discretion of the Trustees in the furtherance of the charity’s objects

Revaluation reserve – this reflects the total revaluation above cost of freehold property accounted for under the revaluation model. The expenditure charged to the fund represents the depreciation charged during the year on the revaluation amount of property, plant and equipment.

Reason for the transfers

The value of assets under construction purchased during the year has been transferred from the AIC Project restricted fund to the Building fund, within designated funds, since the asset has been purchased from restricted donations but the asset is held for designated purposes and not a restricted purpose.

DocuSign Envelope ID: 78F3361F-7FCD-4D10-9254-B738C2BB75EB

THE KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF BIRMINGHAM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

21 Analysis of net assets between funds

Unrestricted
funds
2022
£
Fund balances at 31
December 2022 are
represented by:
Tangible assets
7,045,889
Investment properties
5,642,189
Current assets/(liabilities)
751,361
Long term liabilities
(2,750,000)
10,689,439		 Restricted
funds
2022
£
-
-
1,782,595
-
1,782,595		 Total Unrestricted
Restricted
funds
funds
2022
2021
2021
£
£
£
7,045,889
6,792,146
-
5,642,189
3,533,239
-
2,533,956
662,232
1,919,429
(2,750,000)
(1,189,835)
-
12,472,034
9,797,782
1,919,429		 Total
2021
£
6,792,146
3,533,239
2,581,661
(1,189,835)
11,717,211

22 Capital Commitments

The charity has contractual capital commitments in respect of the design and build of the Mosque, Imambara and associated works. Total costs contracted for, including those already incurred, are estimated to be approximately £7million. Future costs of the project have not been recognised in these financial statements, except to the extent that the work has been carried out by the reporting end date.

23 Related party transactions

During the year the Trustees paid donations and religious dues to the charity totalling £55,289 (2021: £15,024). In addition, short-term interest-free bridging loans for the purchase of an investment property were received from Trustees totalling £80,000, which were subsequently repaid during the year. No amounts were due to or from Trustees at the reporting end date (2021: £nil).

24 Connected parties

The charity, although independent, is involved with a wider network of charities. It is a member of The Council of European Jamaats (COEJ) which represents the charity at the global organisation, The World Federation of Khoja Shia Ithna-Asheri Muslim Communities (WF). Both charities are registered with the Charities Commission in the UK. WF represents Birmingham Jamaat when dealing with international work which includes disaster and general relief outside the UK. Receipts and Payments for COEJ and WF are recognised as a third-party collections restricted fund. WF also provides voluntary donations to the charity towards building the Mosque and Imambara. Included within debtors are amounts owed by WF to the charity of £146,645 (2021: £115,297).

DocuSign Envelope ID: 78F3361F-7FCD-4D10-9254-B738C2BB75EB

THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF BIRMINGHAM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

25
26		 Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in Statement of Financial Activities
Fair value gains and losses on investment properties
Depreciation and impairment of tangible assets
Movements in working capital:
Decrease/(increase) in debtors
Increase in creditors
Cash generated from/(absorbed by) operations
Analysis of changes in net debt
Cash at bank and in hand

Loans falling due within one year
Loans falling due after more than one year		 2022
2021
£
£
754,823
35,334
(288,550)
(667,326)
-
298,789 301,190
11,720
(312,897)
165,105
66,330
255,757
(198,593)
At 1
January
2022
Cash flows
At 31
December
2022
£
£
£
2,510,859
6,361
2,517,220
(122,757)
122,757
-
(1,189,835)(1,560,165) (2,750,000)
1,198,267
(1,431,047)
(232,780)