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2022-12-31-accounts

REGISTERED COMPANY NUMBER: 11084296 (England and Wales) REGISTERED CHARITY NUMBER: 1179846

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

FOR

THE ISLAMIC ASSOCIATION OF LINCOLN

THE ISLAMIC ASSOCIATION OF LINCOLN

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

Page
Report of the Trustees 1 to 6
Independent Examiner's Report 7
Statement of Financial Activities 8
Balance Sheet 9 to 10
Notes to the Financial Statements 11 to 22
Detailed Statement of Financial Activities 23 to 24

THE ISLAMIC ASSOCIATION OF LINCOLN (REGISTERED NUMBER: 11084296)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

The trustees, who are also directors of the charitable company for the purpose of the Companies Act 2006, present their annual report with the financial statements of the charitable company for the year end 31st December 2022. The trustees have adopted the provisions of 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 (FRS102) (effective 1 January 2019).

The financial statements comply with the charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association and the Statement of Recommended Practice applicable to charities (FRS102).

OBJECTIVES AND ACTIVITIES

Objectives and aims

Objectives and activities for the publics benefit.

The Islamic Association of Lincoln' objects and principal activities are set out in the charity’s constitution, adopted by special resolution passed on 21 October 2017, are summarised as follows:

To do all such things, as are consistent with the above and charity law and which are considered as conducive to principal objects.

The charity carries out a wide range of activities in pursuance of its charitable aims. The trustees consider that these activities summarised in achievement and performance below, provide benefit both of those who worship at the Mosque and wider community of Lincoln.

In deciding which activities, the charity will pursue, the trustee have had due regard to the guidance issued by the charity commission on public benefit.

OBJECTIVES AND ACTIVITIES

Activities, Achievements and Performance

As mentioned above the charity has continued the charitable work of the Islamic association. The charity carries out a range of activities in pursuance of its charitable aims.

We are very pleased that since the first purpose-built mosque in Lincolnshire opened its door in April 2018, Alhamdulillah, the number of worshippers attending regular prayers are constantly increasing. In order to accommodate worshipers, the mosque started arranging three Eid prayers and two Juma prayers. The mosque has dedicated praying halls for sisters, brothers and two additional halls for community activities/teaching for boys and girls. In addition, there are regular teaching/social activities for teenage boys, girls and adults.

Page 1

THE ISLAMIC ASSOCIATION OF LINCOLN (REGISTERED NUMBER: 11084296)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

OBJECTIVES AND ACTIVITIES

Activities, Achievements and Performance continued

Arabic and Islamic studies are taught to children aged 5-16 on weekday evenings.

Daily five time prayers are conducted at our premises on Dixon street in our mosque while limited day prayers take place at Orchard street, Lincoln.

Since the opening of the new mosque, all lectures and social functions have taken place there.

Knowledge about Islam and Muslim culture is disseminated to the general public vis distribution of leaflets, books and tapes. These are distributed free of charge.

Since the opening thousands of school children visited our new mosque and have learnt about Islam as part of their Religious Education teaching. In 2022, over 1900 children visited the mosque which includes schools, Royal Air Force, the Lincolnshire Police, scouts, faith organisations and charitable organisations.

The Association also started a food bank service to help those who were unable to afford food. We are pleased that during 2022, around 1800 parcels were distributed to those who need help.

The Association also provided a number of other services to community members for example funerals, weddings, counselling etc.

In 2022, the Association had eight employees, including four part-time teachers.

FINANCIAL REVIEW

Financial review

The Statement of Financial Activities for the year ended 31 December 2022 shows incoming resources totalling £163,532 (2021: £3,624,009) and resources expended totalling £122,772 (2021: £113,232), resulting in net incoming resources totalling £40,760 (2021: £3,510,777).

As a result, the Charity's total funds have increased from £3,585,186 as at 31 December 2021 to £3,625,946 as at 31 December 2022.

FINANCIAL REVIEW

Financial review continued

We have a policy of recording donations and providing receipts so that we can claim gift aid in a correct manner, we are constantly improving our practices in financial management. In addition, we have regular standing order and cash/cheque donations to cover our day to day expenses including wages and salaries. We are very open and transparent in our accounts and now have a respectable Accountancy firm looking after our accounts. There is a dedicated volunteer treasurer on the committee and the trustees are very happy with company’s finances and accounts.

Reserves policy

The trustees have reviewed the reserves of the charity. The policy is to hold enough funds to meet six months estimated operating costs of the Charity for the following year. This currently equates to approximately £29,850. The trustees consider that with little future capital expenditure planned, they are in a strong position to maintain the reserves at the level anticipated. At the balance sheet date, the free reserves of the charity were £3,614,701.

Page 2

THE ISLAMIC ASSOCIATION OF LINCOLN (REGISTERED NUMBER: 11084296)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

FUTURE PLANS

The Islamic Association of Lincoln and the local Muslim community is very excited by the new Mosque which opened in 2018. We hope to continue to expand our activities in the future, particularly as COVID situation had improved now. The Mosque has been open for school visits and we are planning to expand our services further and our Imams have started visiting schools to break barriers and raise awareness about religion. We have been planning to expand evening school services and plan to enrol more students. To assist with this a head of madrassa and a teacher have been appointed to help move the Charity forward in future years.

The Association has now 7 teachers involved in teaching of madrassa children. This helped to reduce the size of classes so we can focus on improving the quality of teaching.

The trustees have had detailed consultations with UK based scholars, to understand what we can do with the old Orchard Street Mosque. Some options were considered i.e. to build flats but after a detailed consultation, the trustees made recommendations that it would be the best for several reasons to maintain the masjid. This proposal was supported by trustees, all members of both Executive Advisory committees and both the imams.

We also have vision to work with members of the BAME community irrespective of religion or race, to see how we can of help and assistance in matters they may have difficulties with.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is a company limited by guarantee (registered number 11084296) which was incorporated on 27 November 2017 and achieved charitable status on 07 September 2018 (registered number 1179846).

The company was established under a Memorandum of Association which established the objects and powers of the charitable company which is governed by its Articles of Association.

Recruitment and appointment of new trustees

As the Charity is incorporated as a company limited by guarantee, the Trustees are deemed to be Directors of the Charity.

Recruitment and appointment of new trustees continued

As set out in the charity's Articles of Association new trustees or directors who are permitted by law to do so, may be appointed to be a director either by:

All appointments are subject to suitable references, disclosure, and a declaration that the person is legally allowed to be a Trustee.

Organisational structure

The Islamic Association of Lincoln is organised so that its management committee of trustees meet regularly to manage its affairs and formulate policy.

Page 3

THE ISLAMIC ASSOCIATION OF LINCOLN (REGISTERED NUMBER: 11084296)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT

Organisational structure continued

All committee members have responsibility for certain areas, e.g. Chairman, Treasurer, Secretary, Social Officer, Education Officer and Maintenance Officer. Committee members work in collaboration and monthly meetings are held. Both brothers and sisters’ executive advisory committees report back to the trustees regularly. The Islamic Association of Lincoln regularly reviews its governance and structure. The association will establish new young boys and girls executive committee as outlined in the constitution.

Induction and training of new trustees

Induction

The Charity has a comprehensive induction process for all new Trustees.

This induction process includes the following procedures.

Training

Trustees regularly review their role and activities. Topics include governance, strategic planning, and new legislation.

All Trustees give their time voluntarily and receive no benefits from the Charity. Any expenses reclaimed from the Charity are set out in the notes to the financial statements. Trustees claimed no expenses during the year.

Risk management

The Trustees have a duty to identify and review the risks to which the Charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

The bank account has a complex mandate in place which means all cheques or invoice payments require two signatories and two signatories are required for any changes to the bank account such as setting up standing orders etc.

Trustees meet bi-monthly to receive reports on the work of the Charity and to monitor progress against the Charity's business plan. Good governance in our charity is fundamental to our success. We continue to achieve our charity's outcomes and aims through effective governance and the right leadership structures. Good governance enables us to support our charity's compliance with relevant legislation and regulations. It also promotes attitudes and a culture where everything works towards fulfilling the charity's vision. We use the Charity Governance Code to help us and our trustees to develop high standards of governance.

Everyday management and the delivery of the service is delegated so that decisions are made at the most appropriate level. Trustees continue to closely monitor, income and expenditure. The finance sub-committee, chaired by the Treasurer, monitors, and makes recommendations on issues in relation to the Charity's financial position.

The Trustees have a duty to identify and review the risks to which the Charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

Page 4

THE ISLAMIC ASSOCIATION OF LINCOLN (REGISTERED NUMBER: 11084296)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT

Risk management continued

The Trustees have examined the major strategic, business, and operational issues that the Charity faces. They confirm that systems are in place to enable regular reports to be produced so that necessary steps can be taken to reduce risks.

Every member of staff has a job description and receives regular supervision. Together, these make clear the role and responsibility of everyone in the organisation. The manager holds regular team briefings where information is shared, and practice issues are discussed.

Safeguarding Compliance

The Association ensure children are safely looked after in the evening teaching classes and all teachers have appropriate training for safeguarding and children safety. In February 2022, the Association arranged safeguarding and child protection training for teachers and committee members. The Association has a Madrassa liaison officer who acts as the first point of contact for parents and teachers. The officer liaises with the mosque committee and trustees in all matters of child protection. The headteacher has made necessary arrangements with the voluntary centre services at Lincoln City Council for the regular checking of DBS for our madrassa teachers. In the period covered by these financial statements, Trustees were not aware of any incidents that were required to be reported to the Charity Commission.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

11084296 (England and Wales)

Registered Charity number

1179846

Registered office

Lincoln Central Mosque & Cultural Centre Dixon Street Lincoln Lincolnshire LN6 7DA

Trustees

Dr R Zafar (resigned 19/01/2023) Dr T Ahmed – Chairman M Z Qureshi (resigned 19/01/2023) M Kamal (appointed 19/01/2023) Dr S A Gbadebo (appointed 19/01/2023) A Rafique

Independent Examiner

Hamid Bukhari FCCA 49 Monastery Drive Solihull Birmingham West Midlands B91 1DW

Page 5

THE ISLAMIC ASSOCIATION OF LINCOLN (REGISTERED NUMBER: 11084296)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

REFERENCE AND ADMINISTRATIVE DETAILS

Bankers

Barclays Bank Plc Unit 1, City Office Park Tritton Road Lincoln Lincolnshire LN6 7DA

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

FUNDS HELD AS CUSTODIAN FOR OTHERS

Lincoln Embracing All Nation (LEAN)

LEAN supports a range of culturally diverse people living in Lincoln and celebrates the wonderful diversity of the city.

During the year ended 31 December 2022 The Islamic Association of Lincoln received £nil (2021: £35,982) from Lincoln Embracing All Nation (LEAN) to be held by the Charity on behalf of the Lincoln Embracing All Nation (LEAN).

During the year ended 31 December 2022 a total of £35,982 has been expended Lincoln Embracing All Nation (LEAN) leaving an unexpended balance totalling £nil (2021: £35,982) which had been included by the Charity within other creditors falling due within one year as at 31 December 2022 £nil (2021: £35,982).

Approved by order of the board of trustees on 28 September 2023 and signed on its behalf by:

.......................................................................... Dr T Ahmed - Trustee

Page 6

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE ISLAMIC ASSOCIATION OF LINCOLN (REGISTERED NUMBER: 11084296)

Independent examiner's report to the trustees of The Islamic Association of Lincoln ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2022.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.

Independent examiner's statement

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:

  1. accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or

  2. the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act 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; or

  3. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

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 accounts to be reached.

Hamid Bukhari FCCA 49 Monastery Drive Solihull Birmingham West Midlands B91 1DW

Date: 28 September 2023

Page 7

THE ISLAMIC ASSOCIATION OF LINCOLN (REGISTERED NUMBER: 11084296)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2022

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
Other trading activities
4
Investment income
5
Charitable activities
Education
6
Total
EXPENDITURE ON
Charitable activities
7
Charitable activities
Support costs
Total
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
119,448
5,559
4,690
18,360
148,057
81,292
30,771
112,063
35,994
3,578,707
3,614,701		 Restricted
funds
£
15,475
-
-
-
15,475
7,278
3,431
10,709
4,766
6,479
11,245		 2022
Total
funds
£
134,923
5,559
4,690
18,360
163,532
88,570
34,202
122,772
40,760
3,585,186
3,625,946		 2021
Total
funds
£
3,597,708
8,141
10
18,150
3,624,009
78,603
34,629
113,232
3,510,777
74,409
3,585,186

The notes form part of these financial statements

Page 8

THE ISLAMIC ASSOCIATION OF LINCOLN (REGISTERED NUMBER: 11084296)

BALANCE SHEET 31 DECEMBER 2022

Notes
FIXED ASSETS
Tangible assets
15
Investments
Investment property
16
CURRENT ASSETS
Debtors
17
Prepayments
Cash at bank
CREDITORS
Amounts falling due within one year
18
NET CURRENT ASSETS/(LIABILITIES)
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
FUNDS
19
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Unrestricted
funds
£
3,483,503
122,231
1,120
2,048
14,138
17,306
(8,339)
8,967
3,614,701
3,614,701		 Restricted
funds
£
-
-
-
-
11,245
11,245
-
11,245
11,245
11,245		 2022
Total
funds
£
3,483,503
122,231
1,120
2,048
25,383
28,551
(8,339)
20,212
3,625,946
3,625,946
3,614,701
11,245
3,625,946		 2021
Total
funds
£
3,486,077
-
1,053
1,951
146,896
149,900
(50,791)
99,109
3,585,186
3,585,186
3,578,707
6,479
3,585,186

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2022 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

The notes form part of these financial statements

continued...

Page 9

THE ISLAMIC ASSOCIATION OF LINCOLN (REGISTERED NUMBER: 11084296)

BALANCE SHEET - continued 31 DECEMBER 2022

requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 28 September 2023 and were signed on its behalf by:

............................................. Dr T Ahmed - Trustee

The notes form part of these financial statements

Page 10

THE ISLAMIC ASSOCIATION OF LINCOLN (REGISTERED NUMBER: 11084296)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1. ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

FINANCIAL REPORTING STANDARD 102 - REDUCED DISCLOSURE EXEMPTIONS

The charitable company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':

INCOME

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

EXPENDITURE

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

TANGIBLE FIXED ASSETS

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property - not provided
Plant and machinery - 25% reducing balance
Fixtures and fittings - 15% reducing balance
Computer equipment - 33% on cost

TAXATION

The charity is exempt from corporation tax on its charitable activities.

EMPLOYEE BENEFITS

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

For defined contribution schemes the amount charged to the Statement of Financial Activities in respect of pension costs and other post-retirement benefits is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.

continued...

Page 11

THE ISLAMIC ASSOCIATION OF LINCOLN (REGISTERED NUMBER: 11084296)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

1. ACCOUNTING POLICIES - continued

CASH AND CASH EQUIVALENTS

Cash and cash equivalents include cash in hand and deposits held at call with banks. Bank overdrafts are shown within borrowings in current liabilities.

FUND ACCOUNTING

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS

Contributions to the personal pension schemes of certain employees are charged to the Statement of Financial Activities in the period in which they relate.

The assets of these personal pension schemes are held separately from those of the charitable company in independently administered funds.

INVESTMENT PROPERTY

Investment property is measured using the fair value model and is stated at its fair value as at the reporting end date. The surplus or deficit on revaluation is recognised in the Statement of Financial Activities

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 statements.

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

The Charity only has 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.

COMPANY STATUS

The charitable company is a company limited by guarantee. The members of the charitable company are the trustees named in the trustees' report. In the event of the charitable company being wound up the liability in respect of the guarantee is limited to £1 per member of the charitable company.

continued...

Page 12

THE ISLAMIC ASSOCIATION OF LINCOLN (REGISTERED NUMBER: 11084296)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

1. ACCOUNTING POLICIES - continued

GOING CONCERN

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The expected income and expenditure is sufficient with the level of reserves for the charity to continue as a going concern.

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 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

3.
DONATIONS AND LEGACIES
Donations
Gift Aid
4.
OTHER TRADING ACTIVITIES
Car park income
Hall hire
5.
INVESTMENT INCOME
Bank interest
Rents received		 2022
£
102,437
17,011
119,448		 2021
£
3,579,367
18,341
3,597,708
2022
£
5,439
120
5,559
2022
£
-
4,690
4,690		 2021
£
8,141
-
8,141
2021
£
10
-
10

continued...

Page 13

THE ISLAMIC ASSOCIATION OF LINCOLN (REGISTERED NUMBER: 11084296)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

6.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Madrassa and other course
fees
Education
7.
CHARITABLE ACTIVITIES COSTS

Charitable activities
Support costs
8.
DIRECT COSTS OF CHARITABLE ACTIVITIES
Imam salaries
Imam pension costs
Teachers’ salaries
Teachers’ pension costs
Event expenses
Funeral expenses
Congregation leaders
Donations
Food bank expenses
Islamic books
Other sundry direct costs
9.
SUPPORT COSTS
Support costs
Other
support
costs
£
29,377		 Direct
Costs (see
note 8)
£
88,570
-
88,570
Finance
costs
£
320

continued...

Page 14

THE ISLAMIC ASSOCIATION OF LINCOLN (REGISTERED NUMBER: 11084296)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

9. SUPPORT COSTS - continued

Support costs, included in the above, are as follows:

Cleaner salary
Rent, rates and insurance
Light and heat
Telephone, internet and fax
Printing, postage and stationery
Sundry and other costs
Staff training
Repairs and maintenance
Legal and professional fees
Subscriptions
Bank charges
Software
Cleaning and waste disposal
Depreciation of tangible fixed assets		 2022
Support
costs
£
4,491
3,252
5,926
757
300
1,187
375
7,923
4,505
448
320
520
1,085
3,113
34,202		 2021
Support
costs
£
1,242
1,260
2,525
467
1,053
200
-
11,563
11,045
770
215
200
544
3,545
34,629

10. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2022 2021
£ £
Depreciation - owned assets 3,113 3,545

11. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2022 nor for the year ended 31 December 2021.

TRUSTEES' EXPENSES

There were no trustees' expenses paid for the year ended 31 December 2022 nor for the year ended 31 December 2021.

continued...

Page 15

THE ISLAMIC ASSOCIATION OF LINCOLN (REGISTERED NUMBER: 11084296)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

12.
STAFF COSTS
Wages and salaries
Other pension costs
The average monthly number of employees during the year was as follows:
Teachers’ and congregation
Cleaner
No employees received emoluments in excess of £60,000.
13.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
3,589,588
Other trading activities
8,141
Investment income
10
Charitable activities
Education
18,150
Total
3,615,889
EXPENDITURE ON
Charitable activities
Charitable activities
75,622
Support costs
34,629
Total
110,251
NET INCOME/(EXPENDITURE)
3,505,638		 2022
£
68,738
2,026
70,764
2022
7
1
8
Restricted
funds
£
8,120
-
-
-
8,120
2,981
-
2,981
5,139
3,624,009
78,603
34,629
113,232
3,510,777

continued...

Page 16

THE ISLAMIC ASSOCIATION OF LINCOLN (REGISTERED NUMBER: 11084296)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

13.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued
Unrestricted
funds
£
RECONCILIATION OF FUNDS
Total funds brought forward
73,069
TOTAL FUNDS CARRIED FORWARD
3,578,707		 Restricted
funds
£
1,340
6,479		 Total
funds
£
74,409
3,585,186

14. PENSION COMMITMENTS

The Charity contributes to the individual pension plans of certain employees. The assets of these schemes are held separately from those of the Charity in independently administered funds.

Total contributions made by the Charity during the year ended 31 December 2022 amounted to £4,364 (2021: £653) and outstanding contributions as at 31 December 2022 amounted to £3,674 (2021: £2,267).

15. TANGIBLE FIXED ASSETS


COST
At 1 January 2021
Additions
At 31 December 2022
DEPRECIATION
At 1 January 2021
Charge for year
At 31 December 2022
NET BOOK VALUE
At 31 December 2022
At 31 December 2021

Computer
equipment
£
1,140
-
1,140
797
343
1,140
-
343

Freehold
property
£
3,470,000
-
3,470,000
-
-
-
3,470,000
3,470,000		 Furniture,
fittings
and

equipment
£
8,824
-
8,824
2,922
885
3,807
5,017
5,903		 Plant &
machinery
£
10,239
539
10,778
3,237
1,885
5,122
5,656
7,002

continued...

Page 17

THE ISLAMIC ASSOCIATION OF LINCOLN (REGISTERED NUMBER: 11084296)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

15.
TANGIBLE FIXED ASSETS - continued
COST
At 1 January 2021
Additions
At 31 December 2022
DEPRECIATION
At 1 January 2021
Charge for year
At 31 December 2022
NET BOOK VALUE
16.
INVESTMENT PROPERTY

COST
At 1 January 2021
Additions
At 31 December 2022
NET BOOK VALUE
17.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Other debtors
Prepayments
At 31 December 2022
At 31 December 2021
At 31 December 2022
At 31 December 2021		 Short
leasehold
£
2,830
-
2,830
-
-
-

2022
£
117
1,003
2,048
3,168
2,830
2,830		 Total
£
3,493,033
539
3,393,572
6,956
3,113
10,069
Total
£
-
122,231
122,231
2021
£
50
1,003
1,951
3,004
3,483,503
3,486,078
122,231
-

continued...

Page 18

THE ISLAMIC ASSOCIATION OF LINCOLN (REGISTERED NUMBER: 11084296)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

18.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Social security and other taxes
Other creditors
Accruals and deferred income
19.
MOVEMENT IN FUNDS

Unrestricted funds
General fund
Restricted funds
Food bank
Funerals
Investment property
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
Restricted funds
Food bank
Funerals
Investment property
TOTAL FUNDS
At 1.1.22
£
3,578,707
3,578,707
5,202
1,277
-
6,479
3,585,186
Incoming
resources
£
148,057
148,057
1,885
4,870
8,720
15,475
163,532		 2022
£
304
3,675
-
4,360
8,339
Net
movement
in funds
£
35,994
35,994
519
(1,042)
5,289
4,766
40,760
Resources
expended
£
(112,063)
(112,063)
(1,366)
(5,912)
(3,431)
(10,709)
(122,772)		 2021
£
304
4,326
35,981
10,180
50,791
At 31.12.22
£
3,614,701
3,614,701
5,721
235
5,289
11,245
3,625,946
Movement
in funds
£
35,994
35,994
519
(1,042)
5,289
4,766
40,760

continued...

Page 19

THE ISLAMIC ASSOCIATION OF LINCOLN (REGISTERED NUMBER: 11084296)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

19. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds


At 1.1.21
£
Unrestricted funds
General fund
73,069
73,069
Restricted funds
Food bank
-
Funerals
1,340
1,340
TOTAL FUNDS
74,409
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
3,615,889
3,615,889
Restricted funds
Funerals
2,050
Food bank
6,070
8,120
TOTAL FUNDS
3,624,009		 Net
movement
in funds
£
3,505,638
3,505,638
5,202
(63)
5,139
3,510,777
Resources
expended
£
(110,250)
(110,250)
(2,113)
(869)
(2,982)
(113,232)		 At 31.12.21
£
3,578,707
3,578,707
5,202
1,277
6,479
3,585,186
Movement
in funds
£
3,505,638
3,505,638
(63)
5,202
5,138
3,510,777

continued...

Page 20

THE ISLAMIC ASSOCIATION OF LINCOLN (REGISTERED NUMBER: 11084296)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

19. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined position is as follows:


Unrestricted funds
General fund
Restricted funds
Food bank
Funerals
Investment property
TOTAL FUNDS
At 1.1.21
£
73,069
73,069
-
1,340
1,340
74,409		 Net
movement
in funds
£
3,541,632
3,541,632
5,721
(1,105)
5,289
9,905
3,551,537		 At 31.12.22
£
3,614,701
3,614,701
5,721
235
5,289
11,245
3,625,946

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Funerals
Food bank
Investment property
TOTAL FUNDS		 Incoming
resources
£
3,763,945
3,763,945
6,920
7,955
8,720
23,595
3,787,540		 Resources
expended
£
(222,313)
(222,313)
(8,025)
(2,234)
(3,431)
(13,690)
(236,003)		 Movement
in funds
£
3,541,632
3,541,632
(1,105)
5,721
5,289
9,905
(3,551,537)

continued...

Page 21

THE ISLAMIC ASSOCIATION OF LINCOLN (REGISTERED NUMBER: 11084296)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

19. MOVEMENT IN FUNDS - continued

Purpose of funds

General fund

This fund represents the free funds of the Charity that are not designated for particular purposes.

Funerals

This fund represents donations received specifically for funerals to undertake burial and graveyard costs.

Food bank

This fund represents donations received specifically to replenish our food bank.

Investment property

This fund represents donations received specifically to maintain our investment property.

20. RELATED PARTY DISCLOSURES

During the year ended 31 December 2022 the following donations were received from the Trustees/Directors:

Dr R Zafar
Dr T Ahmed – Chairman
Mr A Rafique
Dr M Z Qureshi		 2022
£
1,580
1,030
300
600
3,510		 2021
£
963
4,150
250
850
6,213

21. ULTIMATE CONTROLLING PARTY

The Charity is controlled by the Trustees as listed in the Report of the Trustees.

Page 22

THE ISLAMIC ASSOCIATION OF LINCOLN (REGISTERED NUMBER: 11084296)

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022

INCOME AND ENDOWMENTS
Donations and legacies
Donations
Gift Aid
Other trading activities
Car park income
Hall hire
Other trading activities
Bank interest
Rents received
Charitable activities
Madrassa and other course fees
Total incoming resources
EXPENDITURE
Charitable activities
Direct costs
Imam salaries
Imam pension costs
Teachers’ salaries
Teachers’ pension costs
Event expenses
Funeral expenses
Congregation leaders
Donations
Food bank expenses		 2022
£
117,912
17,011		 2021
£
3,579,367
18,341
134,923
5,439
120
5,559
-
4,690
4,690
18,360
18,360
163,532
37,650
1,506
26,597
520
9,868
5,913
2,940
1,119
1,366		 3,597,708
8,141
-
8,141
10
-
10
18,150
18,150
3,624,009
35,917
1,808
25,064
474
1,621
2,113
5,200
2,705
868

This page does not form part of the statutory financial statements

Page 23

THE ISLAMIC ASSOCIATION OF LINCOLN (REGISTERED NUMBER: 11084296)

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022

Charitable activities
Direct costs
Brought forward
Islamic books
Other sundry direct costs
Support costs
Cleaner salary
Rent, rates and insurance
Light and heat
Telephone, internet and fax
Printing, postage and stationery
Sundry and other costs
Staff training
Repairs and maintenance
Subscriptions
Software
Cleaning and waste disposal
Depreciation of tangible fixed assets
Finance costs
Bank charges
Governance costs
Legal and professional fees
Total resources expended
Net income/(expenditure)		 2022
£
87,479
1,091
-
88,570
4,491
3,252
5,926
757
300
1,187
375
7,923
448
520
1,085
3,113
29,377
320
320
4,505
4,505
122,772
40,760		 2021
£
75,770
820
2,013
78,603
1,242
1,260
2,525
467
1,053
200
-
11,563
770
200
544
3,545
23,369
215
215
11,045
11,045
113,232
3,510,777

This page does not form part of the statutory financial statements

Page 24