OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-03-31-accounts

Charity Registration No. 1173839

ISLAMIC ASSOCIATION OF NORTH LONDON ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

ISLAMIC ASSOCIATION OF NORTH LONDON

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr Nurul Alam
Mr Alnoor Kara
Mr Umar Khan- Cheema
Mr Mohammed Abdul Basit
Mr Faisal Habib
Mr Shehu Suleiman
Mr Khaled Ahmed
Mr Tehmur Khan
Mr Furkan Shahabuddin
Mr Mohamed Abanur
Charity number 1173839
Registered office 685 High Road
North Finchley
London
UK
N12 0DA
Auditor ZAM Mushtaq Ltd
First Floor
2 Woodberry Grove
London
N12 0DR

ISLAMIC ASSOCIATION OF NORTH LONDON

CONTENTS

Page
Trustees' report 1 - 5
Statement of trustees' responsibilities 6
Independent auditor's report 7 - 9
Statement of financial activities 10
Balance sheet 11
Statement of cash flows 12
Notes to the financial statements 13 - 25

ISLAMIC ASSOCIATION OF NORTH LONDON

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021

The trustees present their report and financial statements for the year ended 31 March 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 charity's constitution , 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 charity's objects of the Charitable Incorporated Organisation (CIO), as laid out in its constitution, are:

The trustees have paid due regard to guidance on the public benefit issued by the Charity Commission in deciding what activities the charity should undertake.

The demand for the core services of IANL continues to rise by the fact that it serves an increasing Muslim community covering a wide geographical area in the London Borough of Barnet. It is a diverse community originating from a variety of ethnicities and cultures.

IANL provides facilities to facilitate all the daily prayers and is open to the public seven days a week. The prayer facilities are used for the large congregational prayers held on Fridays, during Ramadan and on other important occasions such as the two festivals of Eid.

Achievements and performance

Covid 19

The COVID 19 pandemic has had a crippling effect on the services provided at IANL. All services were suspended including Ramadan, our busiest time of year. Many of the staff at IANL had been placed on the government furlough scheme and as more information became available regarding the virus and the government published medical guidelines this helped plan a coordinated response.

In the initial period of the first lockdown from March to July 2020, IANL organised a community support group where members of IANL assisted the most vulnerable in the community with essential items such as food and medicine.

IANL developed its online platform to continue community engagement at a vital time where members of the community were unable to meet. This helped keep communication channels open and allowed the community to feel they were still part of IANL.

After putting together a detailed risk assessment, taking into account Sharia principles, medical advice and government guidelines, IANL reopened in August 2020 with safety measures, such as social distancing, in place throughout the centre. Wudhu facilities were kept closed and attendees were obliged to bring with them essential items such as a face mask, a prayer mat, and a bag for their shoes.

IANL continues to monitor new guidelines issued by the government and public health authorities updating its working practices accordingly.

Financial review

The results of IANL are shown in the attached financial statements. The net surplus for the year was £567,169 (2020: £842,477) as detailed in the Statement of Financial Activities.

ISLAMIC ASSOCIATION OF NORTH LONDON

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Reserves policy

The trustees aim to maintain free reserves in unrestricted funds at a level which equates to approximately three months of charity’s unrestricted expenditure, net of fixed investment income. The trustees consider that, in the event of a downturn in the receipt of donations, this level will provide necessary funds to ensure that support and governance costs are covered. The trustees consider that this level is sufficient, given the continuing returns from the investments and as the giving of donations’ tradition is strong in the community of such a faith-based organisation.

Principal funding sources

The principal funding sources for the unrestricted funds are the general collections, standing orders, gift aid and investment income. In addition IANL has collected restricted funds for the extension appeal as well as restricted Sadaqah and Zakat funds which have been used towards providing financial aid as disclosed further in the Trustees’ Report.

IANL raised £363,635 through voluntary donations in the year.

Fundraising from individuals is carefully controlled following internal processes and all public donations involve individuals directly approaching the charity. No professional fundraisers have been used and no undue pressure has been placed on any individual to donate to the charity.

Investment policy and objectives

IANL operates an investment policy to grow the assets so that returns can be used to further its aims as set out in the constitution document and activities, as well as to meet the Charity’s costs. The investment level of the Charity is determined by the Board of Trustees, weighing all the appropriate options and being cognisant of IANL’s risk appetite which very low, and in the pursuit of IANL’s long and short term objectives as set and reviewed by the Board of Trustees from time to time.

IANL properties

At the year-end IANL had invested approximately £2.4m in income generating residential properties, yielding a return of approximately 4.3% on year end value.

The residential properties currently owned by IANL are in the close vicinity to the main mosque building. Subsequent to the year end, IANL has acquired one further residential property, in the same vicinity, for a total consideration of approximately £0.25m.

Some of the properties are currently in the names of trustees and former trustees. These are held under legally binding contracts and trust deeds. IANL has instructed its solicitors to transfer the properties to IANL CIO. The process is expected to be completed in the foreseeable future.

ISLAMIC ASSOCIATION OF NORTH LONDON

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Risk Management

The trustees and management of IANL believe that sound risk management is integral to both good management and good governance practice. Risk management forms an integral part of the charity’s decision–making and is incorporated within strategic and operational planning. Risk assessment will be conducted on all new activities and projects to ensure they are in line with the charity’s objectives and mission. Any risks or opportunities arising will be identified, analysed and reported at an appropriate level. A risk register covering key strategic risks will be maintained and updated quarterly and more frequently where risks are known to be volatile. A more detailed IANL operational risk register will be maintained by each subcommittee in aspects where this is considered appropriate, taking account of the impact of potential risk and the cost benefit of the exercise. IANL will regularly review and monitor the effectiveness of its risk management framework and update it as necessary and considered appropriate. The next review is scheduled for Q3 2022.

Plans for future periods

IANL will focus its efforts in the coming year on re-establishing its services that were suspended due to Covid-19 and develop its existing operating mechanisms to better its output and serve the community more effectively.

ISLAMIC ASSOCIATION OF NORTH LONDON

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management

The charity is a charitable incorporated organisation (CIO).

The charity trustees manage the affairs of the CIO. There must be at least seven and not more than ten charity trustees appointed at a Biennial AGM. The charity trustees may at any time appoint a new charity trustee (“Co-opted Charity Trustee”) provided the number of trustees does not exceed fifteen.

To ensure that IANL's strategic objectives are delivered the trustees have set up four committees to oversee their delivery. These are: Develop, Serve, Educate and Promote.

Develop

The purpose of this committee is to:

Serve

The purpose of this committee is to:

Educate

The purpose of this committee is to:

Promote

The purpose of this committee is to:

The trustees who served during the year and up to the date of signature of the financial statements were: Mr Nurul Alam

Mr Alnoor Kara

Mr Umar Khan- Cheema

Mr Mohammed Abdul Basit

Mr Faisal Habib Mr Shehu Suleiman Mr Khaled Ahmed Mr Tehmur Khan Mr Furkan Shahabuddin Mr Mohamed Abanur

Trustee appointments

Trustees stand for election at an AGM every 2 years. Ballot papers are prepared following receipt of nominations from members of the CIO and the election is overseen by an independent election commissioner. A maximum of 10 Trustees can be appointed at each election. The next Election is scheduled to be held during the January 2022 AGM.

The election commissioner also oversees the election of the President by members of the CIO at the same AGM. Candidates for President must have been elected as a Trustee.

Prior to their appointment, trustees attend an introductory session on the responsibilities and expectations of a trustee at IANL. They are made aware of the aims and objectives of the charity, policies and procedures as well as characteristics and behaviours expected of them when conducting their work at IANL. They are then paired with an existing trustee to help adjust to IANL working practices.

ISLAMIC ASSOCIATION OF NORTH LONDON

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

New trustees receive a copy of the Constitution of the charity, the latest audited financial statements, access to Board minutes, the Charity Commission guidance ‘The Essential Trustee’ and recent publications. The Trustees are actively encouraged to identify any training they may need. The trustees are kept up-to-date with training opportunities and changes in regulatory standards .

Going Concern

The Trustees have considered the effect of the Covid-19 outbreak that has been spreading throughout the world in early 2020 with regard to the charity's activities. The outbreak has had an impact on the charity's income and activities, however the investment income was unaffected and was able to support the operational costs of IANL. As required by national guidance the charity has gone through periods of closure and restricted activities.

The regular activities of the charity has since the year end been severely curtailed. The Trustees keep under review and assess which activities can begin on a case by case basis, taking into account all the risks associated with such activities.

The Trustees have taken a number of measures to monitor and mitigate the effects of Covid-19 such as health and safety measures for our staff and congregant including social distancing, use of face masks and regular cleaning.

IANL Trustees will continue to monitor and take appropriate actions to ensure that the IANL activities are resumed safely when permitted to do so.

Whilst the outbreak has caused disruption to IANL's income and activities, the Trustees remain confident that IANL will be able to continue its operations.

The trustees' r eport was approved by the Board of Trustees.

Mr Tehmur Khan

Trustee Dated: 21 December 2021

ISLAMIC ASSOCIATION OF NORTH LONDON

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2021

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 Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They 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.

ISLAMIC ASSOCIATION OF NORTH LONDON

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF ISLAMIC ASSOCIATION OF NORTH LONDON

Opinion

We have audited the financial statements of Islamic Association of North London (the ‘charity’) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the 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 Ireland (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) (ISAs (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.

Emphasis of matter

We draw attention to Note 12,13 and 17 of the financial statements, which describes the ownership of certain fixed assets. Our opinion is not modified in respect of this matter.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' 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.

ISLAMIC ASSOCIATION OF NORTH LONDON

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF ISLAMIC ASSOCIATION OF NORTH LONDON

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 s tatement of trustees' r esponsibilities, 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. In 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 .

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the charity's financial statement to material misstatement and how fraud might occur, including through discussions with the trustees, discussions with our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the charity by discussion with trustees and by updating of the sector in the charity operates.

Laws and regulations of direct significance in the context of the charity include the Charities Act 2011, Financial Reporting Standard 102 and employment law.

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company records of breaches of laws and regulations, minutes of meetings and correspondence to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

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

Other matter s

ISLAMIC ASSOCIATION OF NORTH LONDON

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF ISLAMIC ASSOCIATION OF NORTH LONDON

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)" (as amended) 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 Generally Accepted Accounting Practice.

Tariq Mushtaq (Senior Statutory Auditor) for and on behalf of ZAM Mushtaq Ltd

21 December 2021

Chartered Certified Accountants Statutory Auditor

First Floor 2 Woodberry Grove London N12 0DR

ZAM Mushtaq Ltd 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.

ISLAMIC ASSOCIATION OF NORTH LONDON

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income from:
Donations and legacies
3
534,160
123,121
Charitable activities
4
22,649
-
Investment income
5
93,264
-
Total income
650,073
123,121
Expenditure on:
Charitable activities
6
192,396
32,100
Net gains/(losses) on
investments
11
18,471
-
Net incoming
resources before
transfers
476,148
91,021
Gross transfers
between funds
400,000
(400,000)
Net movement in funds
876,148
(308,979)
Fund balances at 1
April 2020
2,964,068
1,123,021
Fund balances at 31
March 2021
3,840,216
814,042		 TotalUnrestricted
funds
2021
2020
£
£
657,281
305,824
22,649
71,442
93,264
71,636
773,194
448,902
224,496
237,294
18,471
(100,000)
567,169
111,608
-
-
567,169
111,608
4,087,089
2,852,460
4,654,258
2,964,068		 Restricted
funds
2020
£
876,281
-
-
876,281
145,412
-
730,869
-
730,869
392,152
1,123,021		 Total
2020
£
1,182,105
71,442
71,636
1,325,183
382,706
(100,000)
842,477
-
842,477
3,244,612
4,087,089

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

All income and expenditure derive from continuing activities.

ISLAMIC ASSOCIATION OF NORTH LONDON

BALANCE SHEET

AS AT 31 MARCH 2021

Notes
Fixed assets
Tangible assets
12
Investment properties
13
Current assets
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within
one year
15
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
Unrestricted funds		 2021
£
£
1,092,930
2,415,000
3,507,930
117,862
1,113,541
1,231,403
(85,075)
1,146,328
4,654,258
814,042
3,840,216
4,654,258		 2020
£
£
1,103,633
1,675,000
2,778,633
41,628
1,396,693
1,438,321
(129,865)
1,308,456
4,087,089
1,123,021
2,964,068
4,087,089

The financial statements were approved by the Trustees on 21 December 2021

Mr Nurul Alam Mr Faisal Habib Trustee Trustee

ISLAMIC ASSOCIATION OF NORTH LONDON

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

Notes
Cash flows from operating activities
Cash generated from operations
19
Investing activities
Purchase of tangible fixed assets
Purchase of investment property
Investment income received
Net cash (used in)/generated from
investing activities
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		 2021
£
£
346,443
(1,330)
(721,529)
93,264
(629,595)
-
(283,152)
1,396,693
1,113,541		 2020
£
£
893,683
(214)
-
71,636
71,422
-
965,105
431,588
1,396,693

ISLAMIC ASSOCIATION OF NORTH LONDON

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

Charity information

Islamic Association of North London is a Charitable Incorporated Organisation (CIO). The registered office is 685 High Road, North Finchley, London N12 0DA.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's constitution, 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)". 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 a mounts 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.

ISLAMIC ASSOCIATION OF NORTH LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

Government grants received in relation to coronavirus job retention scheme are credited to profit and loss account.

1.5 Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to each category of expense shown in the Statement of Financial Activities. Expenditure is recognised when the following criteria are met:

there is a present legal or constructive obligation resulting from a past event it is more likely than not that a transfer of benefits (usually a cash payment) will be required in settlement the amount of the obligation can be measured or estimated reliably.

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

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 property 2% on cost Fixtures and fittings 25% on reducing balance

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 net income/(expenditure) for the year.

1.7 Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

1.8 Impairment of fixed 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 ) .

1.9 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.

ISLAMIC ASSOCIATION OF NORTH LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

1.10 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.

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 p aymen ts 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 charity’s contractual obligations expire or are discharged or cancelled.

1.11 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.

ISLAMIC ASSOCIATION OF NORTH LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

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.

Critical judgements

Asset Lives

The building used as a mosque is written off over 50 years for accounting purposes and fixtures and fittings are written off over 4 years.

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2021
2021
£
£
Donations and gifts
363,635
37,354
Government Grants
62,571
-
Membership fees
1,760
-
Gift Aid
105,974
-
Extension Fund
-
85,767
Other donations
220
-
534,160
123,121
For the year ended 31 March 2020
305,824
876,281
Grants receivable for core activities
Coronavirus Job Retention Scheme
62,571
-
62,571
-		 Total
2021
£
400,989
62,571
1,760
105,974
85,767
220
657,281
62,571
62,571		 Total
2020
£
257,409
-
1,893
162,897
759,412
494
1,182,105
1,182,105
-
-

ISLAMIC ASSOCIATION OF NORTH LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

4 Charitable activities

Madrassah
fees
Other income
2021
2021
£
£
Performance related grants
-
-
Ancillary income
17,139
5,510
17,139
5,510		 Total
2021
£
-
22,649
22,649		 Total
2020
£
11,669
59,773
71,442

ISLAMIC ASSOCIATION OF NORTH LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

4 Charitable activities

Charitable activities
For the year ended 31 March 2020
CIO Activities
Ramadan
Income
Madrassah
fees
£
£
£
Performance related grants
11,669
-
-
Ancillary income
-
8,092
39,687
11,669
8,092
39,687
Analysis by fund
Unrestricted funds
11,669
8,092
39,687		 (Continued)
Youth &
Dawah
Nikkah Fee
income
Other income
Total
2020
£
£
£
£
-
-
-
11,669
1,795
850
9,349
59,773
1,795
850
9,349
71,442
1,795
850
9,349
71,442

ISLAMIC ASSOCIATION OF NORTH LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

5 Investment income

Unrestricted
funds
2021
£
Rental income
84,100
Return on monies on deposit
9,164
93,264		 Total
2020
£
69,887
1,749
71,636

ISLAMIC ASSOCIATION OF NORTH LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

6 Charitable activities

CIO
activities
Ramadan
Expenditure
Madrassah
Expenditure
2021
2021
2021
£
£
£
Staff costs
140,741
-
-
Depreciation and impairment
12,033
-
-
Bank charges
564
-
-
Cleaning materials
881
-
-
Computer and software expenses
6,985
-
-
Events, food costs and anciliary
activities
636
-
-
Friday Imams travel expenses
-
-
-
Legal & Professional front extension
660
-
-
Insurance
2,083
-
-
Investment property repairs and other
expenses
16,654
-
-
Light, heat and power for main premises
3,658
-
-
Printing, postage and stationery
398
-
-
Water rates
2,084
-
-
Repairs and maintenance for main
premises
2,700
-
-
Sundry expenses
2,700
-
-
Telephone and broadband
504
-
-
Waste collection
929
-
-
Other charitable expenditure
296
-
-
194,506
-
-
Grant funding of activities (see note 7)
25,960
-
-
Share of governance costs (see note 8)
4,030
-
-
224,496
-
-
Analysis by fund
Unrestricted funds
192,396
-
-
Restricted funds
32,100
-
-
224,496
-
-
For the year ended 31 March 2020
Unrestricted funds
215,422
18,059
3,813
Restricted funds
145,412
-
-
360,834
18,059
3,813		 Total
2021
£
140,741
12,033
564
881
6,985
636
-
660
2,083
16,654
3,658
398
2,084
2,700
2,700
504
929
296
194,506
25,960
4,030
224,496
192,396
32,100
224,496		 Total
2020
£
151,939
11,750
1,490
1,833
7,068
23,417
200
2,418
2,024
11,440
7,658
1,181
3,140
10,182
3,372
407
1,099
-
240,618
139,088
3,000
382,706
237,294
145,412
382,706
237,294
145,412
382,706

ISLAMIC ASSOCIATION OF NORTH LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

7 Grants payable

Grants to institutions:
African Development Trust
Imran Khan Cancer Hospital
Interpal
Syria Relief
Homeless Action in Barnet (HAB)
Appeals by Third Party UK charities in Ramadan
Other
Grants to individuals
Support costs
Governance
costs
£
Audit fees
4,030
4,030
Analysed between
Charitable activities
4,030		 Charitable
Grant
Funding of
activities
Charitable
Grant
Funding of
activities
2021
2020
£
£
-
2,500
-
2,500
-
2,500
-
2,500
-
1,400
-
59,699
-
2,695
-
73,794
25,960
65,294
25,960
139,088
2021
2020
£
£
4,030
3,000
4,030
3,000
4,030
3,000

8 Support costs

9 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

ISLAMIC ASSOCIATION OF NORTH LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

10 Employees

The average monthly number of employees during the year was:

Imams, administrative, madrassa and support staff
Employment costs
Wages and salaries
Social security costs		 2021
Number
20
2021
£
137,053
3,688
140,741		 2020
Number
20
2020
£
146,266
5,673
151,939

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

11 Net gains/(losses) on investments

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Revaluation of investments 18,471 (100,000)

ISLAMIC ASSOCIATION OF NORTH LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

12 Tangible fixed assets

Cost
At 1 April 2020
Additions
At 31 March 2021
Depreciation and impairment
At 1 April 2020
Depreciation charged in the year
At 31 March 2021
Carrying amount
At 31 March 2021
At 31 March 2020		 Freehold
property
Fixtures and
fittings
£
£
1,109,434
21,279
-
1,330
1,109,434
22,609
17,977
9,103
8,989
3,044
26,966
12,147
1,082,468
10,462
1,091,457
12,176		 Total
£
1,130,713
1,330
1,132,043
27,080
12,033
39,113
1,092,930
1,103,633

IANL CIO acquired by transfer, the assets and liabilities of the IANL Trust on 1 April 2018. The freehold property ownership at the date of signing the financial statements is still in the name of the holding trustees of the old unincorporated structure. The application to transfer the title deeds has been lodged at the Land Registry and is awaiting due process.

13 Investment property

Fair value
At 1 April 2020
Additions through external acquisition
Net gains or losses through fair value adjustments
At 31 March 2021		 2021
£
1,675,000
721,529
18,471
2,415,000

Investment property comprises freehold and long leasehold properties. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 31 March 2021 by a local property estate agent, who is not connected with the charity. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

IANL CIO acquired by transfer the assets and liabilities of the IANL Trust on 1 April 2018. At the date of signing the financial statements, ownership of the investment properties bought since 1 April 2018 are held in the names of former and current trustees of the CIO. A Trust Deed is in place for each of the investment properties whereby these properties are held in Trust for the charity.

ISLAMIC ASSOCIATION OF NORTH LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

13
Investment property
Freehold
Long leasehold
14
Debtors
Amounts falling due within one year:
Other debtors
Prepayments and accrued income
15
Creditors: amounts falling due within one year
Other creditors
Accruals and deferred income		 (Continued)
2021
2020
£
£
1,715,000
725,000
700,000
950,000
2,415,000
1,675,000
2021
2020
£
£
2,262
6,234
115,600
35,394
117,862
41,628
2021
2020
£
£
77,915
121,465
7,160
8,400
85,075
129,865

Included in other creditors is an amount of £77,000 (£120,500) relating to Qard Hasana loan which is unsecured and repayable on demand.

16
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2021
2021
£
£
Fund balances at 31
March 2021 are
represented by:
Tangible assets
1,092,930
-
Investment properties
2,415,000
-
Current assets/
(liabilities)
332,286
814,042
3,840,216
814,042		 TotalUnrestricted
funds
2021
2020
£
£
1,092,930
1,103,633
2,415,000
1,675,000
1,146,328
185,435
4,654,258
2,964,068		 Restricted
funds
2020
£
-
-
1,123,021
1,123,021		 Total
2020
£
1,103,633
1,675,000
1,308,456
4,087,089

ISLAMIC ASSOCIATION OF NORTH LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

17 Related party transactions

Mr PA Sufi (former trustee), Mr M Rashid (former trustee), Mr E Hosany (former trustee), and Mr N Alam (current trustee) hold the title to the investment properties in trust on behalf of the charity.

18 Transfers from Restricted Funds

There was a transfer of £400,000 from restricted funds to general funds in the year.

.

19
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Fair value gains and losses on investments
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase)/decrease in debtors
(Decrease)/increase in creditors
Cash generated from operations		 2021
£
567,169
(93,264)
(18,471)
12,033
(76,234)
(44,790)
346,443		 2020
£
842,477
(71,636)
100,000
11,750
6,361
4,731
893,683

20 Analysis of changes in net funds

The charity had no debt during the year.