Charity registration number 1171255
KANZ-UL-IMAN JAMIA MOSQUE ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
KANZ-UL-IMAN JAMIA MOSQUE
LEGAL AND ADMINISTRATIVE INFORMATION
Chairman
Haji Mushtaq Hussain
Secretary
Haji Abdul Sattar
Charity number
1171255
Principal address
Binfield Street Tipton DY4 8LS
Independent examiner
Nouman Shahzad, FCCA 57 Alfred Street Sparkbrook Birmingham B12 8JP
Bankers
HSBC Dudley West Midlands
KANZ-UL-IMAN JAMIA MOSQUE
CONTENTS
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Page
Trustees report 1-2
Independent examiner's report 3
Statement of financial activities 4
Balance sheet 5
Notes to the financial statements 6-10
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KANZ-UL-IMAN JAMIA MOSQUE
TRUSTEES REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
The Trustees present their annual report and financial statements for the year ended 31 December 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Kanz-Ul-lman Jamia Mosque'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
Kanz-Ul-Ilman Jamia Mosque is a Charity Organisation. It is registered with the Charity Commissions (No. 1171255) and constituted by Deed of Trust.
The Charity is administered by a Trust Committee.
The principal object of the Charity is to provide a Place of Worship, Religious Teachings and Education Centre for the benefit of the local community.
Policies are in place for recruitment, anti-bullying and safeguarding but not regulated by any other organisation and no serious incident reported or needed.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Kanz-Ul-Iman Jamia Mosque should undertake.
As regarding activities all the brickwork has been completed on our extension, we have introduced and held two car washes and taken out our students on an outing during the summer holiday break from school.
Objectives are to get the new extension watertight and to begin work on the interior, introduce weekend education classes, we are looking to recruit a teacher who will be tasked with improving the standard of education at the mosque. We also intend to put in a claim for Gift Aid.”
Achievements and performance
Financial review
It is the policy of the Kanz-Ul-Iman Jamia Mosque that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Kanz-Ul-lman Jamia Mosque’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The Trustees have assessed the major risks to which the Kanz-Ul-Iman Jamia Mosque is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Structure, governance and management
The Trustees who served during the year and up to the date of signature of the financial statements were: Haji Mushtaq Hussain
Haji Amir Zaman Haji Abdul Sattar Haji Muhammed Shahban Muhammed Javed (Deceased 14 October 2021) Muhammed Younis Mohammed Ashraf Haji Allah Ditta Haji Mohammed Arshad Habib Khan
Mohammed Siddique Muhammad Magqbool Mohammed Azam
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KANZ-UL-IMAN JAMIA MOSQUE
TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
Muhammed Shehzad
Haji Karam Hussain Haji Mohammed Sardar Haji Abdul Khaliq Haji Mohammed Yasin
Status
Kanz-Ul-Iman Jamia Mosque is a Registered Charity.
The Trustees report was approved by the Board of Trustees.
Haji Abdul Sattar (Secretary)
Dated: 3 November 2022
22
KANZ-UL-IMAN JAMIA MOSQUE
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF KANZ-UL-IMAN JAMIA MOSQUE
We report to the Trustees on our examination of the financial statements of Kanz-Ul-Ilman Jamia Mosque (the Kanz-Ul-Iman Jamia Mosque) for the year ended 31 December 2021.
Responsibilities and basis of report
As the Trustees of the Kanz-Ul-Ilman Jamia Mosque you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
We report in respect of our examination of the Kanz-Ul-lman Jamia Mosque’s financial statements carried out under section 145 of the 2011 Act. In carrying out our examination, we have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) 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.
We understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
We have completed our examination. We confirm that no matters have come to our attention in connection with the examination giving us cause to believe that in any material respect: 1 accounting records were not kept in respect of the Kanz-Ul-lman Jamia Mosque as required by section 130 of the 2011 Act; or
2 _ the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
We have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Nouman Shahzad, FCCA
57 Alfred Street
Sparkbrook Birmingham B12 8JP
Dated: 3 November 2022
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KANZ-UL-IMAN JAMIA MOSQUE
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2021
| 2021 | 2020 | ||
|---|---|---|---|
| Notes | £ | £ | |
| Income from: | |||
| Charitable activities | 3 | 109,107 | 85,492 |
| Expenditure on: | |||
| Charitable activities | 4 | 37,798 | 35,785 |
| Net income for the year/ | |||
| Net movement in funds | 71,309 | 49,707 | |
| Fund balances at 1 January 2021 | 162,790 | 141,482 | |
| Fundbalancesat31December2021 | 238,102 | 162,790 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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KANZ-UL-IMAN JAMIA MOSQUE
BALANCE SHEET
AS AT 31 DECEMBER 2021
| 2021 | 2020 | ||||
|---|---|---|---|---|---|
| Notes | £ | £ | £ | £ | |
| Fixed assets | |||||
| Tangible assets | 1 | 2,054,998 | 1,988,238 | ||
| Current assets | |||||
| Cash at bank and in hand | 210,117 | 206,150 | |||
| Creditors: amounts falling due within | |||||
| one year | 8 | (1,057) | (1,639) | ||
| Net current assets | 209,060 | 204,511 | |||
| Total assets less current liabilities | 2,264,058 | 2,192,749 | |||
| Income funds | |||||
| Unrestricted funds | 2,264,058 | 2,192,749 | |||
| 2,264,058 | 2,192,749 |
The financial statements were approved by the Trustees on 3 November 2022
Haji Abdul Sattar Trustee
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KANZ-UL-IMAN JAMIA MOSQUE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 Accounting policies
Charity information
Kanz-Ul-Ilman Jamia Mosque is a registered charity (Charity number: 1171255).
1.1 Accounting convention The financial statements have been prepared in accordance with the Kanz-Ul-lman Jamia Mosque's [governing document], the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) 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)" (effective 1 January 2019). The Kanz-Ul-Iman Jamia Mosque is a Public Benefit Entity as defined by FRS 102. The Kanz-Ul-lman Jamia Mosque has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements 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 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling, which is the functional currency of the Kanz-Ul-Iman Jamia Mosque. 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 Going concern
At the time of approving the financial statements, the Trustees have a reasonable expectation that the KanzUl-lman Jamia Mosque 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 financial statements.
1.3. Charitable funds Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
1.4 Income Income is recognised when the Kanz-Ul-lman Jamia Mosque is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the Kanz-Ul-Iman Jamia Mosque has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
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KANZ-UL-IMAN JAMIA MOSQUE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 Accounting policies
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(Continued)
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- 1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset's use.
Expenditure is included in the financial statements on an accruals basis.
1.6 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 land and buildings | 0% on written down value |
|---|---|
| Fixtures and fittings | 25% on written down value |
| CarPark | 0%onwrittendownvalue |
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
1.7 Impairment of fixed assets
At each reporting end date, the Kanz-Ul-lman Jamia Mosque reviews the carrying amounts of its tangible assets 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 in order to determine the extent of the impairment loss (if any).
1.8 Cash and cash equivalents Cash and cash equivalents 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.
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.
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KANZ-UL-IMAN JAMIA MOSQUE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 Accounting policies
(Continued)
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. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Kanz-Ul-Iman Jamia Mosque’s contractual obligations expire or are discharged or cancelled.
1.9 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.
Termination benefits are recognised immediately as an expense when the Kanz-Ul-lman Jamia Mosque is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2 Critical accounting estimates and judgements
In the application of the Kanz-Ul-Iman Jamia Mosque’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. 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 Charitable activities
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Donations | 102,629 | 74,825 |
| HMRC Grant | 6,478 | 10,667 |
| 109,107 | 85,492 |
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KANZ-UL-IMAN JAMIA MOSQUE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
4 Charitable activities
| 2021 | 2020 | |
|---|---|---|
| e | £ | |
| Staff costs | 19,406 | 22,335 |
| Depreciation | 789 | 1,053 |
| Water | 273 | 1,198 |
| Sundry | - | 27 |
| Light& heat | 6,763 | 3,335 |
| Printing, postage & stationery | 473 | 271 |
| Telephone | 554 | 534 |
| Repairs & maintenance | 814 | 2,181 |
| Cleaning | 107 | 183 |
| Insurance | 2,580 | 2,651 |
| Other expenses | - | 14 |
| Accountants fees | 1,200 | 2,004 |
| Legal fee | 4,840 | i |
| 37,798 | 35,785 | |
| 37,798 | 35,785 |
5 Trustees
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Kanz-Ul-Iman Jamia Mosque during the year.
6 Employees
The average monthly number of employees during the year was:
| 2021 | 2020 | |
|---|---|---|
| Number | Number | |
| 3 | 3 | |
| Employment costs | 2021 | 2020 |
| £ | £ | |
| Wagesandsalaries | 19,406 | 22;300 |
There were no employees whose annual remuneration was more than £60,000.
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KANZ-UL-IMAN JAMIA MOSQUE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
| iL | Tangible fixed assets | ||||
|---|---|---|---|---|---|
| Freehold land | Fixtures and | Car Park | Total | ||
| and buildings | fittings | ||||
| = | £ | a | £ | ||
| Cost | |||||
| At 1 January 2021 | 1,829,100 | 7,484 | 155,980 | 1,992,564 | |
| Additions | 67,550 | - | - | 67,550 | |
| At 31 December 2021 | 1,896,650 | 7,484 | 155,980 | 2,060,114 | |
| Depreciation and impairment | |||||
| At 1 January 2021 | - | 4,326 | - | 4,326 | |
| Depreciation charged in the year | - | 790 | - | 790 | |
| At 31 December 2021 | - | 5,116 | - | 5,116 | |
| Carrying amount | |||||
| At 31 December 2021 | 1,896,650 | 2,368 | 155,980 | 2,054,998 | |
| At31December2020 | 1,829,100 | 3,158 | 155,980 | 1,988,238 |
The estimated market value of the freehold property is estimated by the Management Committee to be in excess of £1,600,000. The additions to the fixed assets include expenditure such as building costs, labour costs and legal & professional fees relating to the mosque extension.
8 Creditors: amounts falling due within one year
| Creditors: amounts falling due within one year | ||
|---|---|---|
| 2021 | 2020 | |
| = | £ | |
| Other creditors | 337 | 949 |
| Accruals and deferred income | 720 | 690 |
| 1,057 | 1,639 |
9 Related party transactions
There were no disclosable related party transactions during the year (2020 - none).
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