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2020-12-31-accounts

Muslim Association of Nigeria (UK) Report & Financial Statements For the year ended 31 December 2020

Charity no: 1179477

Muslim Association of Nigeria (UK) CRN:1179477

Contents

Charity information 2-3
Trustees report 4-7
Independent examiner’s report 8
Statement of financial activities 9
Balance sheets 10
Notes to the financial statements 11-16

1

Muslim Association of Nigeria (UK) CRN:1179477

Charity information

Charity number (CIO): 1179477

Executive Committee/ Management Trustees

Idris Eletu President Abdul-Jelil Oladejo Vice President Olatunde Sanusi Secretary General Muinat Pedro Assistant Secretary General Karamot Onitolo Treasurer Abosede Zainab Adewusi Financial Officer Saidat Oketunde Education Officer Teslim Akinpeju Publicity Officer Hassan Olawale Abdul-Ganiyu Press Officer Kamaldeen Sadiku Welfare Officer (Male) Kaosara Yesufu Welfare Officer (Female) Olanrewaju Daud Social Officer (Male) Modinat Gbadamosi Social Officer (Female) Taofiq Akinpeju Youth Amir Abbas AbdulGafar Security/Health & Safety Officer Mutiat Animashaun Elders’ Group Liaison Officer Tajudeen Salami Imam Adesina Alabi Ex-Officio 1 Abiola Ogunsola Ex-Officio 2

Holding Trustees: Alhaji H Ololade (28/12/14-Present) Alhaji M. Aremu

Chairman

Alhaji R. Salawu Alhaja R. Hassan Alhaja K. Shofolahan

Council for Religious

Affairs:

Alhaji Tajudeen Salam Imam Alhaji K Abdulfatai Deputy Imam Alhaji Ola Yusuff Secretary Alhaji Taofeek Fagbohun Alhaji Lukmon Adesina Alhaji Sulaiman Ayetoro Alhaji Dhikrullah Mustapha Dr Akeem Adetunji Bro Uthman Adesina Alhaja M.B Elias

2

Muslim Association of Nigeria (UK) CRN:1179477

Location and

Correspondence: Old Kent Road Mosque MAN Building 365 Old Kent Road London. SE1 5JH

Independent Examiner: Maroof Adeoye MBA DChA FCIE MInstF Registered Charity Independent Examiner Accman & Co Accountants Maroof Suite 30 Union Road Croydon. CR0 2XU

Bankers: Lloyds TSB Camberwell Green Branch 25 Camberwell Green Road London. SE5 7AB Al Rayan Bank 44 Hans Crescent London. SW1X 0LZ

3

Muslim Association of Nigeria (UK) CRN:1179477

Trustees’ report

The trustees present their report along with the financial statements of the Charitable Incorporated Organisation (CIO) for the year ended 31 December 2020. The financial statements have been prepared in accordance with the accounting policies set out on page 11 to 16 and comply with the charity’s constitution and applicable law. The association is a registered CIO and acts entirely as a non-profit making organisation.

Structure, Governance & Management

The charity is a Charitable Incorporated Organisation (CIO) Association with registration number 1179477 on 8 August 2018.

The trustees who have served during the year 2020 are set out on page 2. Board of Trustees are appointed at the Special General House Meeting upon the recommendation of the Executives. Members of the Board of Trustees who have served for two years may be re-appointed for another term. The Board of Trustees holds Trustees’ meetings at least three times a year while the Executive Committee met at least four times in a year and much more frequently if need be. The Executives deals with the day to day management of the association and report to the board of trustees for approval on major issues.

The trustees are very grateful to all the volunteers who helped in one way or the other

The present Executive Committee/Management Trustees, that starts their tenure from the 15[th] December 2019 were:

Idris Eletu President Abdul-Jelil Oladejo Vice President Olatunde Sanusi Secretary General Muinat Pedro Assistant Secretary General Karamot Onitolo Treasurer Zainab Adewusi Financial Officer Saidat Oketunde Education Officer Teslim Akinpeju Publicity Officer Kamaldeen Sadiku Welfare Officer (Male) Kaosara Yusuf Welfare Officer (Female) Olanrewaju Daud Social Officer (Male) Modinat Gbadamosi Social Officer (Female) Taofeeeq Akinpeju Youth Amir Abbas AbdulGafar Security/Health & Safety Officer Mutiat Animashaun Elders’ Group Liaison Officer Tajudeen Salami Imam Adesina Alabi Ex-Officio 1 Abiola Ogunsola Ex-Officio 2

4

Muslim Association of Nigeria (UK) CRN:1179477

Objectives & Activities

The association is a dynamic and forward thinking organisation, aims to promote any charitable purposes for the benefit of Muslims of Nigerian origin/residents in the United Kingdom, local community of the London Borough of Southwark at large and in particular: (I) the relief of poverty and distress, and (II) the advancement of the Islamic faith.

When planning our activities for the year, the trustees have considered the Commission’s guidance on public benefit and, in particular, the specific guidance on charities for the advancement of religion. In particular the association try to enable ordinary people to live out their faiths as part of our community through the following activities: 5 daily prayers, Jumuah (Friday) prayers, Taraweeh (Night voluntary prayers during Ramadan), Eid (Festive) prayer, weekly prayer for remembrance of Allah (Dhikr), End of the month lectures, Elders’ dinner & lecture held every last Saturday of the month, Elders’ outing, Aqiqah (naming ceremony), Nikahi (marriage ceremony) & Janazah (burial rite), provision of Islamic education for adults and children, Youth Outing, lecture, Eid dinner, Conferences, Symposium, Workshops, various fundraising activities, provision of Iftar (meals for breaking fast), Dinners, Donation to the needy and use of the Associations’ hall for meetings and programmes by other organisations.

Achievements and Performance

The demands for the association’s services continue to widen in response to Muslim needs and public awareness of Islam. During the year the Association carried out the following activities considered to provide benefit to those who worship at the Mosque and the wider community of London Borough of Southwark and beyond:

The Elders Annual trips, Elders Annual Eid Party, Mosque Appeal Fundraising during Ramadan in July, Fundraising for different projects, Provision of Iftar for 30 days during Ramadan, Eid-el-Fitri dinner, Eid-el-Adha dinner, Tafsir Qur’an (Ramadan Lecture) every Saturday and Sunday during Ramadan, the Youths Annual External and Internal Camp. There were various Walimah Celebrations, weekly lectures, Friday Prayers and lectures, end of month prayers and lectures, quarterly recitation of the whole Qur’an and Counselling on various issues took place throughout the year. There was a number of Ash-shadah (declarations of faith by revert Muslim). Also were series of maintenance and general repairs to the Masjid (Mosque).

Grant & Donations

Those attending the Mosque have given generously to disaster appeals arising from natural calamities affecting various countries around the world. The Council for Religious Affairs continue to administer the receipt and distribution of Zakat in accordance with the teachings of Islam for the relief of those in need and destitute, while the Sadaqah were distributed for everybody in need.

5

Muslim Association of Nigeria (UK) CRN:1179477

Future Plan

The management of this original unincorporated Charity number: 327287 and the new charity’s CIO number: 1179477 have merged the two charities. Having read the Charity Commission’s guidance on collaborative working, making mergers succeed and its mergers checklist, the trustees have decided that merging is in both charity’s interests. Hence, the new charity (CIO) will have taking over the work and assets of this unincorporated charity in order to make better use of the charitable funds, property and provide better services for the beneficiaries considering the fact that the two charities have the same aims. As part of the merger, a ‘vesting declaration’ have been used as a tool to transfer assets on 31 December 2019. The charity will thereafter continue to be known as MUSLIM ASSOCIATION OF NIGERIA UK .

The management will continue to appeal for maintenance funds to manage the existing Mosque that is already too small to comfortably accommodate all those who regularly worship. The management also intend to continue providing services in a similar way and continue laying emphasis on propagation of Islam in accordance with the Qur’an and authentic Hadith and place great importance on sharing a good understanding of Islam with non-Muslims, neighbours and the general public whilst gaining an understanding of their faiths, cultures and traditions.

Financial Review

The charity registered number 327287 (“ the Transferor ”) agreed to merge with the charity CIO registered number1179477 (“ the Transferee ”) and to transfer all of its property to the Transferee on 31 December 2019 as detailed in the balance brought forward on 1 January 2020 in terms of surplus, assets and liabilities.

Our restricted funds raised towards rebuilding the existing Mosque or build a new multipurpose Mosque and Islamic Cultural Centre has weakened by £41,020 (2019: £Nil) due to huge costs of legal and professional incurred towards meeting the statutory requirement of demolition and rebuilding of the mosque.

Policy on Reserves

The trustees aim to maintain free reserves in unrestricted funds and have approved a policy of raising reserves to the level needed to cover three months operating expenditure, equivalent to £57,145 (2019: £Nil) in 2020. Our policy is, therefore, to continue building up our free reserves to the ideal level by means of annual operating surpluses and supplemented by general-purpose appeals from time to time. The unrestricted reserves of the Association at 31 December 2020 increased to £100,529 (2019: £Nil) was more compare to the target. It is anticipated that progress will be made further towards improving on this target in 2020 by the CIO. Any surplus funds which are not likely to be needed to pay for activities were invested to earn profit. At the end of the year our unrestricted reserves increased by £80,519 (2019: £Nil).

6

Muslim Association of Nigeria (UK) CRN:1179477

Risk Assessment

The charity trustees have considered the major risks to which the charity is exposed and have reviewed those risks and established systems and procedures to manage those risks.

The Trustees annually review the risks that the charity faces. To date these have mainly related to:

The Trustees review these risks on an on-going basis and satisfy themselves that adequate systems and procedures are in place to manage the risks identified. In particular, insurance cover is in place and the finances of the Mosque are kept under review.

Statement of Trustees Responsibilities

Charity law 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 at the year end and of its incoming resources and resources expended during that year. In preparing those financial statements, the trustees are required to:

The trustees are responsible for:

·safeguarding the assets and taking reasonable steps for the prevention and detection of fraud and other irregularities.

This report was approved by the Trustees on 5 December 2021 and signed on their behalf by:

Idris Eletu (President) Executive Committee/Management Trustees

7

Muslim Association of Nigeria (UK) CRN:1179477

Independent Examiner’s report To the trustees of Muslim Association of Nigeria (UK)

I report on accounts of the association for the year ended 31 December 2020, which are set out on pages 9 to 16.

Respective responsibilities of trustees and examiner

As described on page 4 the charity’s trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year (under section 1444(2) of the Charities Act 2011 (the 2011 Act)) and that an independent examination is needed.

It is my responsibility to:

Basis of Independent examiner’s report

My examination was carried out in accordance with the General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a `true and fair view’ and the report is limited to those matters set out in the statement below.

Independent examiner’s statement

In the course of my examination, no matter has come to my attention:

Maroof Adeoye MBA DChA FCIE MInstF Registered Charity Independent Examiner Accman & Co Accountants Maroof Suite, 30 Union Road Croydon, Surrey. CR0 2XU

Date: 5 December 2021

8

Muslim Association of Nigeria (UK) CRN:1179477

Statement Of Financial Activities for the year ended 31 December 2020

Unrestricted
Note
Funds
INCOMING RESOURCES
£
Incoming resources from
generated funds:
Voluntary Income
2
184867
Activities for generating funds
3
35162
Investment income
4
10680
Incoming resources from
charitable activities
5
12883
Other incoming resources
65508
Total incoming resources
309100
RESOURCES EXPENDED
Cost of Generating Funds
Cost of generating voluntary income
6
122578
Fundraising trading costs
7
62087
Charitable activities
8
31745
Governance costs
9
12171
Other resources expended
-
Total resources expended
228581
Net incoming/(outgoing) resources
80519
Total funds brought forward
20010
Total funds carried forward
15
100529		 Restricted
Funds
£
212580
-
-
-
-
212580
21056
-
-
232544
-
253600
(41020)
1327240
1286220		 2020
2019
Total
Total
Funds
Funds
£
£
-
-
397447
-
35162
-
10680
-
-
12883
-
65508
-
521680
-
143634
-
62087
-
31745
-
244715
-
-
-
482181
-
39499
0
1347250
-
1386749
-

The total funds brought forward is from the merged charity number 327287 that took place on 31 December 2019.

All incoming resources are derived from continuing operations. The charity has no other gains or losses other than those recognised in the Statement of Financial Activities.

The notes on pages 11 to 16 form part of these financial statements.

9

Muslim Association of Nigeria (UK) CRN:1179477

Balance sheets as at 31 December 2020

Note
Fixed assets
Tangible assets
10
Current assets
Debtors
11
Cash at bank and in hand
12
Total current assets
Current Liabilities
Creditors:
amounts falling due within one year
13
Net current assets
Total Net Assets
Funds of the charity
Unrestricted income funds
14
Restricted income funds
14
Total funds		 £
0
1056518
1056518
6875		 2020
£
337106
1049643
1386749
100529
1286220
1386749		 2019
£
0
0
0
20010
1327240
1347250

The notes on pages 11 to 16 form part of these financial statements.

Approved by the board of trustees on 5 December 2021 and signed on its behalf by:

Idris Eletu (President) Executive Committee/Management Trustees Member

Karamot Onitolo (Treasurer) Executive Committee/Management Trustees Member

10

Muslim Association of Nigeria (UK) CRN:1179477

Notes to the financial statements

1. Principal accounting policies

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the charity’s financial statements.

Accounting convention

The financial statements have been prepared in accordance with applicable accounting standards and under the historical cost accounting rules as modified by the inclusion of fixed asset investments at market value and in accordance with applicable accounting standards. In preparing the financial statements the charity follows best practice as set out in the Statement of Recommended Practice, the Charities SORP 2005 (Accounting and Reporting by Charities) and comply with the Charities (Accounts and Reports) regulations issued under the Charities Act 2011.

Funds accounting

Unrestricted funds comprise those funds, which the trustees are free to use in accordance with the charitable objects.

Restricted funds are funds, which have been given for particular purposes and projects. The restricted fund must be used wholly to rebuild existing mosque or acquire new premises or land to build a purpose build Mosque and Islamic Cultural Centre. Expenditure incurred in relation to the restricted funds is calculated in accordance with the claims for funding made by the charity to achieve it’s purpose.

Incoming resources

The income figure represents cash donations and grants from the public sector, companies, charitable foundations and private individuals received during the year. Income relating to specific periods is apportioned over the accounting periods to which it relates. All other income is recognised when received. Restricted income is used in accordance with specific restrictions imposed by donors.

Bank interest

Bank interest is recognised as incoming resources when it is credited to the bank statement. All bank interest is treated as unrestricted income to the general fund.

Resources expended

Expenditure is charged on an accrual basis, inclusive of irrecoverable VAT. The costs of activities in furtherance of the charity’s objects include the costs directly incurred in providing activities together with support costs. Support costs primarily related to the employment of staff involved in the delivery of service and the maintenance of premises and equipment in use. Where costs cannot be directly attributable to particular headings they have been allocated on a basis consistent with the use of resources. Other overheads have been allocated on the basis of the headcount.

Fixed assets and depreciation

Tangible fixed assets costing more than £200 are capitalised and included at cost including any incidental expenses of acquisition.

Depreciation is not charged on freehold building as the residual value is considered to be higher than the carrying value. Furniture and equipment is written down using reducing balance method of depreciation over their estimated useful economic lives.

Taxation

The association is a registered charity and accordingly is exempt from taxation on its income and gains where they are applied for charitable purposes.

11

Muslim Association of Nigeria (UK) CRN:1179477

2. Voluntary income

Unrestricted
Restricted
Funds
Funds
£
£
Donations
91335
212580
Grants
91047
Subscriptions
2485
-
184867
212580
3.
Activities for generating funds
Unrestricted
Restricted
Funds
Funds
£
£
Markaz fees
35162
-
35162
0
4.
Investment income
Unrestricted
Restricted
Funds
Funds
£
£
Bank Deposit Profit Share
10680
-
10680
0
5.
Incoming resources from charitable activities
Unrestricted
Restricted
Funds
Funds
Aqiqa and Nikah
-
Eids - Fitr and Adha
3343
-
Other Function Income - Ramadan
9446
-
Printing - Calendar and Prayer Book
94
-
Elders and Youth activities
-
12883
0		 2020
Total
Funds
£
303915
91047
2485
397447
2020
Total
Funds
£
35162
35162
2020
Total
Funds
£
10680
10680
2020
Total
Funds
-
3343
9446
94
-
12883		 2019
Total
Funds
£
0
2019
Total
Funds
£
0
2019
Total
Funds
£
0
2019
Total
Funds
0

12

Muslim Association of Nigeria (UK) CRN:1179477

6. Cost of generating voluntary income

Unrestricted
Funds
£
Salaries& Wages Net
36598
PAYE-Tax & NIC
15119
Building Security
723
Casual Cleaners
800
Refuse Disposal
1028
Pension
4670
Telephone
5623
Heating & Electricity
7645
Building Insurance
350
Building Rep&Maint
4139
Admin/Fundraising Exp
1581
Software exp
6247
Bank Charges
3650
Gift, ZakatFitr & Donations
25105
Van Expenses
1436
Office Equipment
348
Welfare
3750
Depreciation – furniture & equipment
3766
Sundries
0
122578
7.
Fundraising trading costs
Unrestricted
Funds
£
Markaz Salaries & wages
60354
Pensions - Markaz
Employers N I contributions
1733
62087
8.
Charitable activities costs
Unrestricted
Funds
£
Functions expenses
18101
Ramadan expenses
1400
Eids expenses
5473
Postage & printing
1792
Stationery
4979
31745		 Restricted
Funds
£
17430
3162
0
0
465
21056
Restricted
Funds
£
-
-
-
0
Restricted
Funds
£
0
-
-
-
-
0		 2020
Total
Funds
£
54028
15119
723
800
1028
4670
5623
7645
350
4139
4742
6247
3650
25105
1436
813
3750
3766
-
143634
2020
Total
Funds
£
60354
-
1733
62087
2020
Total
Funds
£
18101
1400
5473
1792
4979
31745		 2019
Total
Funds
£
0
2019
Total
Funds
£
0
2019
Total
Funds
£
0

13

Muslim Association of Nigeria (UK) CRN:1179477

9. Governance

9.
Governance
Legal and Professional Fees
Independent Examiners Remunerations
10.
Tangible assets
Buildings
Cost
£
At 1 January 2020
325807
Additions
-
Disposals
-
At 31 December 2020
325807
Depreciation
At 1 January 2020
-
Disposals
-
Charge this period
-
At 31 December 2020
-
Net book value
At 31 December 2020
325807
At 31 December 2019
325807
11.
Debtors
Prepayment & accrued income
Other taxes and social security incl salary
Other Debtors - Loans		 Unrestricted
Funds
£
9946
2225
12171
Vehicles
£
14004
-
-
14004
12962
-
261
13222
782
1043
Unrestricted
Funds
£
0
0
0
0		 Restricted
Funds
£
232544
-
232544
Furniture

£
62323
0
-
62323
55083
-
1810
56893
5430
7240
Restricted
Funds
£
-
-
-
0		 2020
Total
Funds
£
242490
2225
244715
IT
equipment
£
44696
-
-
44696
37913
-
1696
39609
5087
6783
2020
Total
Funds
£
-
-
-
0		 2019
Total
Funds
£
0
Total
£
446830
-
-
446830
105958
-
3766
109724
337106
340872
2019
Total
Funds
£
-
0
0 0

14

Muslim Association of Nigeria (UK) CRN:1179477

12. Cash at bank and in hand

Unrestricted
Funds
£
Cash in hand
596
Treasurer/Main
3456
Markaz
26876
FundRaise/OKR
0
Maintence
22281
Elders
30521
Youth
8734
Welfare
2427
AlRayan
0
AlRayan
0
Interbank Transfer
94891
13.
Creditors: amount falling due within one
Unrestricted
Funds
£
Other taxes and social security incl salary
-
accruals and deferred income
875
Other Creditors - incl. Janazah Deposit
0
875
14.
Analysis of net assets between funds		 Restricted
Funds
£
-
-
-
285671
-
-
-
-
669957
6000
-
961628
year
Restricted
Funds
£
-
-
6000
6000		 Restricted
Funds
£
-
-
-
285671
-
-
-
-
669957
6000
-		 2020
Total
Funds
£
596
3456
26876
285671
22281
30521
8734
2427
669957
6000
-
-		 2019
Total
Funds
£
961628 1056518 0
2020
Total
Funds
£
-
875
6000
6875		 2019
Total
Funds
£
0
Fund balances at 31 December 2020
Unrestricted
are represented by:
Funds
£
Tangible fixed assets
11299
Current assets
94891
Current liabilities
(875)
Interbank Transfer
(4786)
Total incoming resources
100529		 Restricted
Funds
£
325807
961628
(6000)
4785
1286220		 2020
2019
Total
Total
Funds
Funds
£
£
337106
1056519
(6875)
(1)
1386749
0

15

Muslim Association of Nigeria (UK) CRN:1179477

15. Statement of funds

Unrestricted
Funds
£
1 January 2020
20010
Incoming resources
309100
329110
Resources expended
(228581)
31 December 2020
100529		 Restricted
Funds
£
1327240
212580
1539820
(253600)
1286220		 2020
2019
Total
Funds
£
£
1347250
521680
1868930
0
(482181)
1386749
0

16. Salaries & Wages

Unrestricted
Funds
£
Salaries/Wages
122624
NICy-er & Pensions-yer
7306
129930		 Restricted
Funds
£
7709
0
7709		 2020
2019
Total
Funds
£
£
130333
7306
137639
0

No employee received emoluments of more than £20,000. The average weekly number of employees during the year was 15 (2019: £Nil).

17. Trustees’ remuneration, benefits and expenses There was no remuneration, benefits or expenses to Trustees during the year.

18. Unrestricted fund closing balance

At the year end, the unrestricted funds are in surplus, amounting to £100,529 including £20,010 transferred from the merging charity number (2019: £Nil).

19. Related party transactions

There were no related party transactions during the year.

20. Independent examination and accountancy services

During the period, the cost of the examination was (Nil) and accountancy services were £875 (2019: £Nil).

21. Controlling Party

The charity is under the control of the charity’s trustees.

16