**CHARITY REGISTRATION NUMBER: 1178467**
# **SHIRLEY MUSLIM ASSOCIATION Financial Statements**
**31 March 2021**
## **SHIRLEY MUSLIM ASSOCIATION**
## **Financial Statements**
## **Year ended 31 March 2021**
||**Page**|
|---|---|
|Trustees' annual report|**1**|
|Statement of financial activities|**4**|
|Statement of financial position|**5**|
|Statement of cash flows|**6**|
|Notes to the financial statements|**7**|
## **SHIRLEY MUSLIM ASSOCIATION**
## **Trustees' Annual Report** _**(continued)**_
## **Year ended 31 March 2021**
The trustees present their report and the financial statements of the charity for the year ended 31 March 2021.
## **Reference and administrative details**
**Registered charity name** SHIRLEY MUSLIM ASSOCIATION **Charity registration number** 1178467 **Principal office** 13 Border Gardens Croydon, CR0 8LQ England. **The trustees** Mr V Sheikh Mr M Z Zaidi Mrs K Kandji **Accountant** Saleemi Associates Chartered accountants & statutory auditor 792 Wickham Road Croydon, CR0 8EA **Bankers** National Westminster Bank Plc 41 High Street Beckenham Kent BR3 4YN
## **Structure, governance and management**
The Shirley Muslim Association is a Charitable Incorporated Organisation (CIO) charitable company (limited by guarantee). We have three formal Trustees and 6 further informal Trustees overseeing activities of the charity. Trustee meetings are held monthly, where updates are provided around current initiatives run by the SMA, and Financial position. An AGM is held annually. Current formal Trustees have been appointed for multiple years, hence are not re-elected for the time being at the AGM. The SMA appointed management positions comprise of a Chair, a vice-Chair and a Secretary who dispense majority of the responsibilities associated with the CIO's activities. All positions are voluntary (unpaid).
## **Objectives and activities**
The Shirley Muslim Association (SMA) is a representative body for Muslim residents living in and around the Shirley area within the London Borough of Croydon. Islam is a collectivist faith/way of life, which emphasizes social cohesion and responsibility. The aim of the Shirley Muslim Association is to manifest these traits through its activities, to not only benefit Muslims residents but the wider community in Shirley.
Founded in 2015, the SMA is run by local volunteer professionals and serves an estimated 1,500+ Muslim residents (individuals and families) across Shirley North and South, promoting community engagement by arranging congregational prayer facilities and social events throughout the year. We also work with other mosques committees around South London and Kent to support community work and social and religious education.
**1**
## **SHIRLEY MUSLIM ASSOCIATION**
## **Trustees' Annual Report** _**(continued)**_
## **Year ended 31 March 2021**
## **Achievements and performance**
In 2020, SMA had to operate through severe COVID restrictions but managed to navigate the challenges to deliver a number of community-focused services. Based on government guidance we had to keep our main prayer space closed for a significant part of the year, including Friday prayers, which ultimately had an impact on the level of donations received. However towards the last quarter of 2020 we were able to offer communal and regular prayers facilities. Our facilities were made COVID safe and operated under strict COVID guidelines which allowed us to serve our community safely. Unfortunately, we were not able to offer any in-person classes as planned, however we did partner with some other local mosques to offer online educational sessions and lectures. We were able to continue supporting the SCCA with the Fare Share food distribution program, which serves 15 under-privileged families in and around the Shirley area.
## **Financial review**
The charities income covered all of its day to day running costs. Donations took a hit as the cash deficit shows, since we were not able to raise any in-person contributions through our weekly prayer gatherings due to COVID restrictions, and were also not given any rent relief during the mandatory closure of our prayer hall.
## **Trustees' responsibilities statement**
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 charity trustees to prepare financial statements for each 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 period.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the applicable Charities SORP;
- make judgments and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
**2**
## **SHIRLEY MUSLIM ASSOCIATION**
## **Trustees' Annual Report** _**(continued)**_
## **Year ended 31 March 2021**
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and 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 applicable Charities (Accounts and Reports) Regulations, 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.
The trustees' annual report was approved on 5 January 2022 and signed on behalf of the board of trustees by:
Mr M Z Zaidi Trustee
**3**
## **SHIRLEY MUSLIM ASSOCIATION**
## **Statement of Financial Activities**
## **Year ended 31 March 2021**
|||**2021**||2020|
|---|---|---|---|---|
|||Unrestricted|||
|||funds**Total funds**||Total funds|
||**Note**|**£**|**£**|£|
|**Income and endowments**|||||
|Donations and legacies|**4**|5,023|5,023|11,413|
|||-----------------------|-----------------------|----------------------------|
|**Total income**||5,023|5,023|11,413|
|||=======================|=======================|============================|
|**Expenditure**|||||
|Expenditure on charitable activities|**5,6**|8,287|8,287|8,126|
|||-----------------------|-----------------------|----------------------------|
|**Total expenditure**||8,287|8,287|8,126|
|||=======================|=======================|============================|
|||-----------------------|-----------------------|----------------------------|
|**Net (expenditure)/income and net movement in funds**||(3,264)|(3,264)|3,287|
|||=======================|=======================|============================|
|**Reconciliation of funds**|||||
|Total funds brought forward||11,179|11,179|7,892|
|||----------------------------|----------------------------|----------------------------|
|**Total funds carried forward**||7,915|7,915|11,179|
|||============================|============================|============================|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
**The notes on pages 7 to 12 form part of these financial statements.**
**4**
## **SHIRLEY MUSLIM ASSOCIATION**
## **Statement of Financial Position**
## **31 March 2021**
|||**2021**|2020|
|---|---|---|---|
||**Note**|**£**|£|
|**Fixed assets**||||
|Tangible fixed assets|**10**|2,587|3,044|
|**Current assets**||||
|Cash at bank and in hand||7,128|8,135|
|**Creditors: amounts falling due within one year**|**11**|1,800|–|
|||-----------------------|-----------------------|
|**Net current assets**||5,328|8,135|
|||-----------------------|----------------------------|
|**Total assets less current liabilities**||7,915|11,179|
|||-----------------------|----------------------------|
|**Net assets**||7,915|11,179|
|||=======================|============================|
|**Funds of the charity**||||
|Unrestricted funds||7,915|11,179|
|||-----------------------|----------------------------|
|**Total charity funds**|**12**|7,915|11,179|
|||=======================|============================|
These financial statements were approved by the board of trustees and authorised for issue on 5 January 2022, and are signed on behalf of the board by:
Mr M Z Zaidi Trustee
**The notes on pages 7 to 12 form part of these financial statements.**
**5**
## **SHIRLEY MUSLIM ASSOCIATION**
## **Statement of Cash Flows**
## **Year ended 31 March 2021**
||**2021**|2020|
|---|---|---|
||**£**|£|
|**Cash flows from operating activities**|||
|Net (expenditure)/income|(3,264)|3,287|
|_Adjustments for:_|||
|Depreciation of tangible fixed assets|457|537|
|Accrued expenses|1,800|–|
||-----------------------|-----------------------|
|Cash generated from operations|(1,007)|3,824|
||-----------------------|-----------------------|
|Net cash (used in)/from operating activities|(1,007)|3,824|
||=======================|=======================|
|**Cash flows from investing activities**|||
|Purchase of tangible assets|–|(1,456)|
||-----------------------|-----------------------|
|Net cash used in investing activities|–|(1,456)|
||=======================|=======================|
|**Net (decrease)/increase in cash and cash equivalents**|(1,007)|2,368|
|**Cash and cash equivalents at beginning of year**|8,135|5,767|
||-----------------------|-----------------------|
|**Cash and cash equivalents at end of year**|7,128|8,135|
||=======================|=======================|
**The notes on pages 7 to 12 form part of these financial statements.**
**6**
## **SHIRLEY MUSLIM ASSOCIATION**
## **Notes to the Financial Statements**
## **Year ended 31 March 2021**
## **1. General information**
The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is 13 Border Gardens, Croydon, CR0 8LQ, England.
## **2. Statement of compliance**
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Charities Act 2011.
## **3. Accounting policies**
## **Basis of preparation**
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.
The financial statements are prepared in sterling, which is the functional currency of the entity.
## **Going concern**
There are no material uncertainties about the charity's ability to continue.
## **Fund accounting**
Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.
Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.
Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.
**7**
## **SHIRLEY MUSLIM ASSOCIATION**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 March 2021**
## **3. Accounting policies** _**(continued)**_
## **Incoming resources**
All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
- income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
- legacy income is recognised when receipt is probable and entitlement is established.
- income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.
- income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.
## **Resources expended**
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:
- expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.
- expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
- other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.
## **Tangible assets**
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
**8**
**SHIRLEY MUSLIM ASSOCIATION**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 March 2021**
## **3. Accounting policies** _**(continued)**_
## **Tangible assets** _**(continued)**_
An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.
## **Depreciation**
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Fixtures and fittings - 15% reducing balance Equipment - 15% reducing balance
## **Impairment of fixed assets**
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.
## **Financial instruments**
A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
Debt instruments are subsequently measured at amortised cost.
Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.
**9**
**SHIRLEY MUSLIM ASSOCIATION**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 March 2021**
## **3. Accounting policies** _**(continued)**_
## **Financial instruments** _**(continued)**_
Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.
For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.
Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
## **4. Donations and legacies**
||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|---|---|---|---|---|
||Funds|**2021**|Funds|2020|
||£|**£**|£|£|
|**Donations**|||||
|General Donations|5,023|5,023|11,413|11,413|
||=======================|=======================|============================|============================|
## **5. Expenditure on charitable activities by fund type**
||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|---|---|---|---|---|
||Funds|**2021**|Funds|2020|
||£|**£**|£|£|
|General expenditure on charitable|||||
|activities|8,287|8,287|8,126|8,126|
||=======================|=======================|=======================|=======================|
## **6. Expenditure on charitable activities by activity type**
||Activities|||
|---|---|---|---|
||undertaken|**Total funds**|Total fund|
||directly|**2021**|2020|
||£|**£**|£|
|General expenditure on charitable activities|8,287|8,287|8,126|
||=======================|=======================|=======================|
**10**
## **SHIRLEY MUSLIM ASSOCIATION**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 March 2021**
## **7. Net (expenditure)/income**
Net (expenditure)/income is stated after charging/(crediting):
Depreciation of tangible fixed assets
|**2021**|2020|
|---|---|
|**£**|£|
|457|537|
|==============|==============|
## **8. Staff costs**
The total staff costs and employee benefits for the reporting period are analysed as follows:
**2021** 2020 **£** £
The average head count of employees during the year was 3 (2020: Nil). The average number of full-time equivalent employees during the year is analysed as follows:
**2021** 2020 **No.** No. Number of staff 3 3 ============== ==============
No employee received employee benefits of more than £60,000 during the year (2020: Nil).
## **9. Trustee remuneration and expenses**
During the year the Charity was under the control of Trustees and Management Committee members as listed on page 1. None of the trustee or management committee member were remunerated or paid any expenses
## **10. Tangible fixed assets**
|||Fixtures and|||
|---|---|---|---|---|
|||fittings|Equipment|**Total**|
|||£|£|**£**|
||**Cost**||||
||**At 1 April 2020 and 31 March 2021**|1,456|2,500|3,956|
|||=======================|=======================|=======================|
||**Depreciation**||||
||At 1 April 2020|218|694|912|
||Charge for the year|186|271|457|
|||-----------------------|-----------------------|-----------------------|
||**At 31 March 2021**|404|965|1,369|
|||=======================|=======================|=======================|
||**Carrying amount**||||
||**At 31 March 2021**|1,052|1,535|2,587|
|||=======================|=======================|=======================|
||At 31 March 2020|1,238|1,806|3,044|
|||=======================|=======================|=======================|
|**11.**|**Creditors:** **amounts falling due within one year**||||
||||**2021**|2020|
||||**£**|£|
||Accruals and deferred income||1,800|–|
||||=======================|==============|
**11**
## **SHIRLEY MUSLIM ASSOCIATION**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 March 2021**
## **12. Analysis of charitable funds**
## **Unrestricted funds**
|**Unrestricted funds**|||||
|---|---|---|---|---|
|||||**At**|
||At|||**31 March 20**|
||1 April 2020|Income|Expenditure|**21**|
||£|£|£|£|
|General funds|11,179|5,023|(8,287)|
7,915|
||============================|=======================|=======================|=======================|
|||||At|
||At|||31 March 20|
||1 April 2019|Income|Expenditure|20|
||£|£|£|£|
|General funds|7,892|11,413|(8,126)|
11,179|
||=======================|============================|=======================|============================|
|**Analysis of net assets between funds**|||||
||||Unrestricted|**Total Funds**|
||||Funds|**2021**|
||||£|**£**|
|Current assets|||7,915|7,915|
||||=======================|=======================|
||||Unrestricted|Total Funds|
||||Funds|2020|
||||£|£|
|Current assets|||11,179|11,179|
||||============================|============================|
## **13. Analysis of net assets between funds**
## **14. Analysis of changes in net debt**
||||||**At**|
|---|---|---|---|---|---|
||At|1|Apr 2020 Cash flows||**31 Mar 2021**|
||||£|£|**£**|
|Cash at bank and in hand|||8,135|(1,007)|
7,128|
||||=======================|=======================|=======================|
**12**