Charity registration number 1172391
ISLAMIC BROTHERHOOD
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
ISLAMIC BROTHERHOOD
LEGAL AND ADMINISTRATIVE INFORMATION
| Chairman | Mr M Arif |
|---|---|
| Vice Chairman | Mr Amir Afzal |
| Treasurer | Mr Shabbir Ahmed |
| Secretary | Mr Mohammad Mansab Dar |
| Charity number | 1172391 |
| Principal address | The Mosque |
| Eagle Street | |
| Coventry | |
| CV1 4GP | |
| Independent examiner | Kaiser Nouman Nathan LLP |
| 57 Alfred Street | |
| Birmingham | |
| B12 8JP | |
| Bankers | Barclays Bank PLC |
| Coventry Branch | |
| Foleshill | |
| Coventry |
ISLAMIC BROTHERHOOD
CONTENTS
| Page | |
|---|---|
| Trustees report | 1 |
| Independent examiner's report | 2 |
| Statement of financial activities | 3 |
| Statement of financial position | 4 |
| Notes to the financial statements | 5 - 10 |
ISLAMIC BROTHERHOOD
TRUSTEES REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
The Trustees present their annual report and financial statements for the year ended 31 December 2022.
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 charity's Deed of Trust, 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
The Trustees of the charity working and performing their duties within the defined parameters of governing documents as some of the objectives are listed as an example below:
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a. To serve, manage, maintain and develop the Noorul-Islam Jamia (Mosque) Coventry (Eagle Street) as the main religious, educational and cultural centre for The Alh-e-Sunnat Ul-Jamaal organisation who follow the Brailvi movement of the Sunni Hanafi school of thought (madhab) in Islam jurisprudence (Fiqh) within the framework of Quran and Sunna.
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b. To recruit and appoint an Imam who is educated or qualified the the Hanafi Brailvi Fiqh and to ensure that the can any of his assistant staff duly appointed carry out their duties in accordance with the teaching and spirit of the Hanafi Brailvi school of thought as defined (3a) above in this constitution.
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c. To manage the performance of the Imam and all staff recruited at least annually.
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d. To ensure that Daily Prayers (Salah) are conducted at the specific times.
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e. To arrange those special prayers on occasions of month of Ramadhan (tarawih), Eid-ul-Fitr and Eid-ul-Adha and other religious festivals are performed and associated facilities and arrangements are provided for the benefit of the Muslim congregation.
The policies adopted in furtherance of these objects are consistent and there has been no change in these during the year.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Achievements and performance
Financial review
It is the policy of the charity 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 charity’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 charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Structure, governance and management
Islamic Brotherhood is registered with Charity Commission (No.1172391) and constituted by Deed of Trust.
The Trustees report was approved by the Board of Trustees.
Mr M Arif Chairperson
15 January 2024
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ISLAMIC BROTHERHOOD
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF ISLAMIC BROTHERHOOD
I report to the Trustees on my examination of the financial statements of Islamic Brotherhood (the charity) for the year ended 31 December 2022.
Responsibilities and basis of report
As the Trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I 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.
I 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.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
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2 the financial statements do not accord with those records; or
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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.
I 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.
Kaiser Nouman Nathan LLP
57 Alfred Street Birmingham B12 8JP
Dated: 15 January 2024
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ISLAMIC BROTHERHOOD
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
| Unrestricted Restricted funds funds 2022 2022 Notes £ £ Income from: Donations and legacies 3 129,153 - Charitable activities 4 8,029 - Total income 137,182 - Expenditure on: Charitable activities 5 100,658 - Net income for the year/ Net movement in funds 36,524 - Fund balances at 1 January 2022 1,238,809 410,000 Fund balances at 31 December 2022 1,275,333 410,000 |
Total Unrestricted Restricted funds funds 2022 2021 2021 £ £ £ 129,153 132,796 - 8,029 7,000 - 137,182 139,796 - 100,658 105,306 - 36,524 34,490 - 1,648,809 1,204,319 410,000 1,685,333 1,238,809 410,000 |
Total 2021 £ 132,796 7,000 |
|---|---|---|
| 139,796 | ||
| 105,306 | ||
| 34,490 1,614,319 |
||
| 1,648,809 |
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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ISLAMIC BROTHERHOOD
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
| Notes Fixed assets Property, plant and equipment 9 Current assets Trade and other receivables 10 Cash at bank and in hand Current liabilities 11 Net current assets Total assets less current liabilities Income funds Restricted funds Unrestricted funds |
2022 £ £ 927,441 414,419 345,664 760,083 (2,191) 757,892 1,685,333 410,000 1,275,333 1,685,333 |
2021 £ £ 838,626 412,110 399,265 811,375 (1,192) 810,183 1,648,809 410,000 1,238,809 1,648,809 |
2021 £ £ 838,626 412,110 399,265 811,375 (1,192) 810,183 1,648,809 410,000 1,238,809 1,648,809 |
|---|---|---|---|
| 1,648,809 | |||
| 410,000 1,238,809 |
|||
| 1,648,809 |
The financial statements were approved by the Trustees on 15 January 2024
Mr M Arif Chairperson
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ISLAMIC BROTHERHOOD
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
1 Accounting policies
Charity information
Islamic Brotherhood is a registered charity with Charity Commission (No.1172391).
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's Deed of Trust, 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 charity is a Public Benefit Entity as defined by FRS 102.
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 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 Going concern
At the time of approving the financial statements, 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 financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
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 financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.4 Income
Income is recognised when the charity 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 charity 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.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
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ISLAMIC BROTHERHOOD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
1 Accounting policies
(Continued)
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.
1.6 Property, plant and equipment
Property, plant and equipment 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 2% on cost Fixtures and fittings 15% on net book value Motor vehicles 20% on net book value
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 non-current assets
At each reporting end date, the charity 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.
1.9 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet 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.
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ISLAMIC BROTHERHOOD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
1 Accounting policies
(Continued)
Basic financial assets
Basic financial assets, which include trade and other receivables 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 trade and other payables 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 payables 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 payables 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 charity’s contractual obligations expire or are discharged or cancelled.
1.10 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 charity 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 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. 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 Donations and legacies
| **Unrestricted ** | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2022 | 2021 | |
| £ | £ | |
| Donations and gifts | 129,153 | 132,796 |
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ISLAMIC BROTHERHOOD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
4 Charitable activities
| Investment income Bank interest Charitable activities Staff costs Depreciation Alarm maintenance Motor expenses Rates & insurance Light & heat Printing, stationery & Advert Telecommunication & postage Repairs & maintenance Cleaning Parking rent Sundry expenses Bank charges Book keeping Acountancy fee Legal & Professional |
2022 £ 7,800 229 8,029 2022 £ 37,209 25,540 681 1,684 7,875 9,502 1,554 782 2,676 1,459 300 8,249 1,272 300 1,500 75 100,658 100,658 |
2021 £ 7,000 - |
|---|---|---|
| 7,000 | ||
| 2021 £ 36,112 21,194 - 120 8,561 8,470 2,736 461 3,000 1,001 - 3,327 1,194 222 900 18,008 |
||
| 105,306 | ||
| 105,306 |
5 Charitable activities
6 Trustees
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
7 Employees
The average monthly number of employees during the year was:
| 2022 | 2021 |
|---|---|
| Number | Number |
| 2 | 2 |
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ISLAMIC BROTHERHOOD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
| 7 | Employees | (Continued) | |
|---|---|---|---|
| Employment costs | 2022 | 2021 | |
| £ | £ | ||
| Wages and salaries | 37,209 | 36,112 |
There were no employees whose annual remuneration was more than £60,000.
8 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 Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
9 Property, plant and equipment
| Freehold land and buildings Fixtures and fittings Motor vehicles £ £ £ Cost At 1 January 2022 912,042 50,825 - Additions 100,455 - 13,900 At 31 December 2022 1,012,497 50,825 13,900 Depreciation and impairment At 1 January 2022 90,152 34,089 - Depreciation charged in the year 20,250 2,510 2,780 At 31 December 2022 110,402 36,599 2,780 Carrying amount At 31 December 2022 902,095 14,226 11,120 At 31 December 2021 821,890 16,736 - |
Total £ 962,867 114,355 |
|---|---|
| 1,077,222 | |
| 124,241 25,540 |
|
| 149,781 | |
| 927,441 | |
| 838,626 |
The carrying value of these investment properties included within property, plant and equipment is well in excess of £902,095 (2021 - £821,890).
10 Trade and other receivables
| Trade and other receivables | ||
|---|---|---|
| 2022 | 2021 | |
| Amounts falling due within one year: | £ | £ |
| Trade receivables and prepayments | 414,419 | 412,110 |
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ISLAMIC BROTHERHOOD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
| 11 Current liabilities Trade payables 12 Analysis of net assets between funds Unrestricted funds Restricted funds 2022 2022 £ £ Fund balances at 31 December 2022 are represented by: Property, plant and equipment 927,441 - Current assets/(liabilities) 757,892 - 1,685,333 - |
Total Unrestricted funds 2022 2021 £ £ 927,441 838,626 757,892 810,183 1,685,333 1,648,809 |
2022 £ 2,191 Restricted funds 2021 £ - - - |
2021 £ 1,192 |
|---|---|---|---|
| Total 2021 £ 838,626 810,183 |
|||
| 1,648,809 |
13 Related party transactions
There were no disclosable related party transactions during the year (2021 - none).
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