**CHARITY REGISTRATION NUMBER: 1184121**
## **Beardwood Musallah Unaudited Financial Statements 31 October 2020**
## **KAROLIA LIMITED**
Chartered Certified Accountants Suite 28 Blackburn Enterprise Centre Furthergate Blackburn Lancashire BB1 3HQ
## **Beardwood Musallah**
## **Financial Statements**
## **Year ended 31 October 2020**
||**Page**|
|---|---|
|Trustees' annual report|**1**|
|Independent examiner's report to the trustees|**3**|
|Statement of financial activities|**4**|
|Statement of financial position|**5**|
|Notes to the financial statements|**6**|
## **Beardwood Musallah**
## **Trustees' Annual Report**
## **Year ended 31 October 2020**
The trustees present their report and the unaudited financial statements of the charity for the year ended 31 October 2020.
## **Reference and administrative details**
**Registered charity name** Beardwood Musallah **Charity registration number** 1184121 **Principal office** 55 Beardwood Brow Blackburn Lancashire BB2 7AT
## **The trustees**
Mr Fazlurrahman Hassan Mr Mubarak Darbar Dr Anwar Alam **Independent examiner** Ahmed Adam Karolia Suite 28 Blackburn Enterprise Centre Furthergate Blackburn Lancashire BB1 3HQ
## **Structure, governance and management**
The Charity is governed under a board of Trustees which includes a Chairman, Secretary & Treasurer. We meet formally every quarter and informally on a weekly basis.
Trustees will engage with the wider community and invite various sections of the community to come along and discuss matters that they bring to our attention as a charity.
## **Objectives and activities**
The primary object of the charity is to advance the religion and faith of Islam for the public benefit by the provision, maintenance, and management of a Musallah in accordance with the beliefs and practices of the individual, including the provision of education, lectures and raising awareness to enlighten others about the Islamic religion.
A further object of the charity is to further or benefit the residents of the Blackburn area without distinction of sex, sexual orientation, race or of political, religious or other opinions by associating together the said residents and the local authorities, voluntary and other organisations in a common effort to advance education and to provide facilities in the interest of social welfare for recreation and leisure time occupation with the objective of improving the conditions of life for the residents.
The object of CIO is provide a space of worship and develop the spiritual and social welfare of the local community and provide a place for local community to come together in worship.
**- 1 -**
## **Beardwood Musallah**
## **Trustees' Annual Report** _**(continued)**_
## **Year ended 31 October 2020**
## **Achievements and performance**
The Beardwood Musallah has engaged in delivering educational lectures, working with other charities and engaging with other faith groups. We responded to the pandemic to help the vulnerable, elderly and the frail in the community. We partnered up with Benefit Mankind a local charity in Blackburn and the local borough council through out the pandemic. We raised funds to buy clothing to donate to local charities such Shaun Haggart Foundation charity a local charity loaced on Livesey Branch Rd in Blackburn,that helps homeless people and families who are financially deprived and struggling.
## **Financial review**
The charity is in its early stages of inception in order to acquire permanent residence we have been actively fund raising since it was established 2yrs ago.
The current position is that the charity is still in deficit of £175k to pay the vendors, who have given us a grace period.
Our forecast is looking promising with a strong fund-raising plan in the next financial year. We are confident in achieving our objectives.
All our income is entirely raised through donations as we are not an income generating business, we solely rely on peoples' kind hearted charitable donations. All our expenditure at the moment is to pay for the asset and building that is to be acquired.
## **Plans for future periods**
All our income is entirely raised through donations we are not an income generating business, we solely rely on peoples' kind hearted charitable donations.
All our expenditure at the moment is to pay for the asset and building has been acquired.
The trustees' annual report was approved on 19 November 2021 and signed on behalf of the board of trustees by:
Mr Fazlurrahman Hassan Trustee
Charity Secretary
**- 2 -**
## **Beardwood Musallah**
## **Independent Examiner's Report to the Trustees of Beardwood Musallah**
## **Year ended 31 October 2020**
I report to the trustees on my examination of the financial statements of Beardwood Musallah ('the charity') for the year ended 31 October 2020.
## **Responsibilities and basis of report**
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent examiner's statement**
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or
2. the financial statements do not accord with those records; or
3. the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Ahmed Adam Karolia Independent Examiner Suite 28 Blackburn Enterprise Centre Furthergate Blackburn Lancashire BB1 3HQ
19 November 2021
**- 3 -**
## **Beardwood Musallah**
## **Statement of Financial Activities**
## **Year ended 31 October 2020**
|||**2020**|**2020**|
|---|---|---|---|
|||Unrestricted||
|||funds|**Total funds**|
||**Note**|**£**|**£**|
|**Income and endowments**||||
|Donations and legacies|**4**|108,442|**108,442**|
|||ৄৄৄৄৄৄৄৄৄ|ৄৄৄৄৄৄৄৄৄ|
|**Total income**||108,442|**108,442**|
|||৶৶৶৶৶৶৶৶৶|৶৶৶৶৶৶৶৶৶|
|**Expenditure**||||
|Expenditure on charitable activities|**5,6**|972|**972**|
|||ৄৄৄৄৄৄৄৄৄ|ৄৄৄৄৄৄৄৄৄ|
|**Total expenditure**||972|**972**|
|||৶৶৶৶৶৶৶৶৶|৶৶৶৶৶৶৶৶৶|
|||ৄৄৄৄৄৄৄৄৄ|ৄৄৄৄৄৄৄৄৄ|
|**Net income and net movement in funds**||107,470|**107,470**|
|||৶৶৶৶৶৶৶৶৶|৶৶৶৶৶৶৶৶৶|
|**Reconciliation of funds**||||
|Total funds brought forward||–|**–**|
|||ৄৄৄৄৄৄৄৄৄ|ৄৄৄৄৄৄৄৄৄ|
|**Total funds carried forward**||107,470|**107,470**|
|||৶৶৶৶৶৶৶৶৶|৶৶৶৶৶৶৶৶৶|
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 6 to 10 form part of these financial statements.**
**- 4 -**
## **Beardwood Musallah**
## **Statement of Financial Position**
## **31 October 2020**
||||**2020**|
|---|---|---|---|
||**Note**|**£**|**£**|
|**Fixed assets**||||
|Tangible fixed assets|**10**||**126,150**|
|**Current assets**||||
|Cash at bank and in hand||**73,841**||
|||ৄৄৄৄৄৄৄৄ||
|**Net current assets**|||**73,841**|
||||ৄৄৄৄৄৄৄৄৄ|
|**Total assets less current liabilities**|||**199,991**|
||||৶৶৶৶৶৶৶৶৶|
|**Funds of the charity**||||
|Unrestricted funds|||**199,991**|
||||ৄৄৄৄৄৄৄৄৄ|
|**Total charity funds**|**11**||**199,991**
৶৶৶৶৶৶৶৶৶|
These financial statements were approved by the board of trustees and authorised for issue on 19 November 2021, and are signed on behalf of the board by:
Mr Fazlurrahman Hassan Trustee
**The notes on pages 6 to 10 form part of these financial statements.**
**- 5 -**
## **Beardwood Musallah**
## **Notes to the Financial Statements**
## **Year ended 31 October 2020**
## **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 55 Beardwood Brow, Blackburn, Lancashire, BB2 7AT.
## **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.
## **Judgements and key sources of estimation uncertainty**
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
## **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.
**- 6 -**
**Beardwood Musallah**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 October 2020**
## **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, noncharitable 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.
**- 7 -**
**Beardwood Musallah**
**Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 October 2020**
## **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.
## **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 cashgenerating 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.
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.
**- 8 -**
## **Beardwood Musallah**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 October 2020**
## **3. Accounting policies** _**(continued)**_
## **Financial instruments** _**(continued)**_
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**|
|---|---|---|---|
|||Funds|**2020**|
|||£|**£**|
||**Donations**|||
||Donations|108,442|**108,442**|
|||৶৶৶৶৶৶৶৶৶|৶৶৶৶৶৶৶৶৶|
|**5.**|**Expenditure on charitable activities by fund type**|||
|||Unrestricted|**Total Funds**|
|||Funds|**2020**|
|||£|**£**|
||Charitable activities|972|**972**|
|||৶৶৶৶|৶৶৶৶|
|**6.**|**Expenditure on charitable activities by activity type**|||
|||Activities||
|||undertaken|**Total funds**|
|||directly|**2020**|
|||£|**£**|
||Charitable activities|972|**972**|
|||৶৶৶৶|৶৶৶৶|
|**7.**|**Analysis of support costs**|||
|||Analysis of||
|||support costs|**Total 2020**|
|||£|**£**|
||Staff costs|872|**872**|
||General office|100|**100**|
|||ৄৄৄৄ|ৄৄৄৄ|
|||972|**972**|
|||৶৶৶৶|৶৶৶৶|
## **8. Staff costs**
The average head count of employees during the year was 1.
**- 9 -**
## **Beardwood Musallah**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 October 2020**
## **8. Staff costs** _**(continued)**_
No employee received employee benefits of more than £60,000 during the year (2019: Nil).
## **9. Trustee remuneration and expenses**
No remuneration or other benefits from employment with the charity or a related entity were received by the trustees.
## **10. Tangible fixed assets**
||**Land and**|
|---|---|
||**buildings**|
||**£**|
|**Cost**||
|At 1 November 2019|**–**|
|Additions|**126,150**|
||ৄৄৄৄৄৄৄৄৄ|
|**At 31 October 2020**|**126,150**|
||৶৶৶৶৶৶৶৶৶|
|**Depreciation**||
|**At 1 November 2019 and 31 October 2020**|**–**|
||৶৶৶৶৶৶৶৶৶|
|**Carrying amount**||
|**At 31 October 2020**|**126,150**
৶৶৶৶৶৶৶৶৶|
## **11. Analysis of charitable funds**
## **Unrestricted funds**
|**Unrestricted funds**||||||
|---|---|---|---|---|---|
||At||||**At**|
||1 November 2||||**31 October 2**|
||019|Income|Expenditure|Transfers|**020**|
||£|£|£|£|**£**|
|General funds|–|108,442|(972)|92,521|**199,991**|
||৶৶৶৶|৶৶৶৶৶৶৶৶৶|৶৶৶৶|৶৶৶৶৶৶৶৶|৶৶৶৶৶৶৶৶৶|
|**Analysis of net assets**|**between funds**|||||
|||||Unrestricted|**Total Funds**|
|||||Funds|**2020**|
|||||£|**£**|
|Tangible fixed assets||||126,150|**126,150**|
|Current assets||||73,841|**73,841**|
|||||ৄৄৄৄৄৄৄৄৄ|ৄৄৄৄৄৄৄৄৄ|
|**Net assets**||||199,991
৶৶৶৶৶৶৶৶৶|**199,991**
৶৶৶৶৶৶৶৶৶|
## **12. Analysis of net assets between funds**
**- 10 -**