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2020-12-31-accounts

CIO Registration Number: 1187103

Loughborough Muslim Centre

Charitable Incorporated Organisation

Report and Financial Statements

For the Year ended 31 December 2020

LOUGHBOROUGH MUSLIM CENTRE - CIO

Contents

Page
Trustees report 1 - 3
Independent examiners' report 4
Statement of financial activities 5
Balance sheet 6
Notes to the financial statements 7 - 9

LOUGHBOROUGH MUSLIM CENTRE - CIO

Trustees report

for the year ended 31 December 2020

The trustees present their report along with the financial statements of the CIO the year ended 31 December 2020. The financial statements have been prepared based on the accounting policies set out in note to the financial statements and comply with the charity's constitution.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard January 2015 applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).

Reference and administrative details of the Charitable Incorporated Organisation (CIO).

Correspondence address

52 Brush Drive Loughborough LE11 1LT

Trustees

M. Haque > Trustee M. Ibrahim > Trustee M. Khan > Chairperson

Independent Examiner

Tassib Hussain Keystone Chartered Accountants 263 Nottingham Road Nottingham NG7 7DA

Page 1

LOUGHBOROUGH MUSLIM CENTRE - CIO

Trustees report (continued) for the year ended 31 December 2020

Structure, Governance and Management

a. Governing document

Loughborough Muslim Centre was registered with the Charities Commission on 20th December 2019.

b. Method of appointment and induction of new members

New trustees are appointed by the trustees of the CIO at a general meeting and are briefed on their legal obligations under charity law, the content of the CIO's constitution, and its recent performance.

c. Organisational structure and decision making

The trustees oversee the running of the CIO on a day to day basis. All operational decisions are made at board meetings which are held frequently through the year.

d. Risk Management

The trustees have assessed the major risks to which the CIO is exposed and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.

Objectives and Activities

a. Summary of objectives

The objectives of the CIO as set out in its governing document are as follows:

  1. The advancement of the Islamic religion by way of:

a. promoting the teachings and tenets of Islam

b. the provision of facilities for worship and Islamic education

  1. To promote for the inhabitants of Loughborough and the surrounding area the provision of facilities for recreation and other leisure time occupation of individuals who have need of such facilities by reason of their youth, age, infirmity or disablement, financial harship or social and economic circumstances.

The Trustees have reviewed the objectives of the CIO to ensure that they provide an overall benefit to the public. In conducting this review, the Trustees have considered the Charity Commission's general guidance of public benefit.

Page 2

LOUGHBOROUGH MUSLIM CENTRE - CIO

Trustees report (continued) for the year ended 31 December 2020

Financial Review

a. Reserves policy

The CIO's reserve policy is to maintain a sufficient level of liquid reserves to meet short term obligations and any unforeseen expenditure. The Trustees are satisfied with the level of liquid reserves held at then end of the period of £9,820.

b. Principle funding

During the year the CIO raised a total of £10,090 of incoming resources before charitable expenditure. Most of the funds raised were through voluntary donations from within the local community.

Statement of trustees Responsibilities

Charity law requires the trustees to prepare financial statements for each financial year which show a true and fair view of the state of affairs of the charity and its financial activities for that period. In preparing those financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 1993. They are also responsible for safeguarding the assets of the CIOand hence for taking reasonable steps for the prevention and dedication of fraud and other irregularities.

This report was approved by the trustees on …………………………………...…………….....……... and signed on their behalf, by:

M. Khan - Chairperson

Page 3

LOUGHBOROUGH MUSLIM CENTRE - CIO

Independent examiner's Report to the trustees of Loughborough Muslim Centre

I report on the accounts of the CIO for the year ended 31 December 2020, which are set out on pages 5 to 9.

Other Information

The Trustees are responsible for other information. The other information comprises the information included in the annual report other than the financial statements and our independent examiners report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our independent examiners report of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the independent examiners report or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report the fact.

Basis of independent examiner's statement

My examination was carried out in accordance with General Directions given by the Charity Commission. 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 the trustees concerning any such matters.

Matters on which we are required to report be exception

In light of the knowledge and understanding of the CIO and environment obtained in the course of the independent examiners report, we have not identified material misstatements in the trustees annual report. We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 or the Charity Accounts Regulations 2006 (as amended) requires us to report to you if, in our opinion:

……………………………………………….

Keystone Chartered Accountants

Statutory Auditor 263 Nottingham Road, Nottingham, NG7 7DA

Date:

Page 4

LOUGHBOROUGH MUSLIM CENTRE - CIO

Statement of financial activities for the year ended 31 December 2020

INCOMING RESOURCES
Incoming resources from generated funds
Voluntary Income
Total Incoming Resources
RESOURCES EXPENDED
Costs of generating funds
Costs of generating voluntary income
Total Resources Expended
NET INCOMING RESOURCES
TOTAL FUNDS CARRIED FORWARD
All activities relate to continuing operations.		 2020
£
10,090
10,090
270
270
9,820
9,820

The notes on pages 7 to 9 form part of these financial statements.

Page 5

LOUGHBOROUGH MUSLIM CENTRE - CIO

Balance sheet

as at 31 December 2020

Note
Fixed assets
Tangible fixed assets
Current assets
Debtors
Cash at bank and in hand
12
Creditors:amounts falling due
within one year
Net Current assets
Charity Funds
Total Funds
Total funds		 -
£
9,820
£		 -
£
-
£
2020
-
£
9,820
£
9,820
£
-
9,820
£
9,820
£
9,820
£

The members have prepared the accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011.

The financial statements were approved by the members on……………………………..……….…..…………..and signed on their behalf by:

M. Khan - Chairperson

The notes on pages 7 to 9 form part of these financial statements.

Page 6

LOUGHBOROUGH MUSLIM CENTRE - CIO

Notes to the financial statements for the year ended 31 December 2020

1. Accounting policies

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

1.2 Fund Accounting

Unrestricted funds are available to spend on activities that further any of the purposes of charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the Trust’s work or for specific artistic projects being undertaken by the Trust.

such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

1.3 Incoming resources

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material

Income received in advance of a theatrical performance or provision of other specified service it is deferred until the criteria for income recognition are met.

1.4 Resources expended

All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.

Charitable Activities include those costs that are directly related to the objectives of the charity.

Governance costs include those incurred in the governance of its assets and are primarily associated with constitutional and statutory requirements.

Support Costs for a single activity are allocated directly to that activity. Where support costs relate to several activities they have been apportioed on the basis of number of direct staff supporting that activity.

Page 7

LOUGHBOROUGH MUSLIM CENTRE - CIO

Notes to the financial statements for the year ended 31 December 2020

1. Accounting policies (continued)

1.5 Reconciliation with previous Generally Accepted Accounting Practice

In preparing the accounts, the members have considered whether in applying the accounting policies required by FRS 102 and the Charities SORP FRS 102 the restatement of comparative items was required.

1.6 Donated services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time of the Friends is not recognised and refer to the trustees’ annual report for more information about their contribution.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

1.7 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

1.8 Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

● Expenditure on charitable activities includes the costs of performances, exhibitions and other educational activities undertaken to further the purposes of the charity and their associated support costs.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Page 8

LOUGHBOROUGH MUSLIM CENTRE - CIO

Notes to the financial statements

for the year ended 31 December 2020

1. Accounting policies (continued)

1.9 Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the Trusts artistic programmes and activities. Where applicable, These costs have been allocated between cost of raising funds and expenditure on charitable activities.

1.10 Stock

Where applicable, Stock is included at the lower of cost or net realisable value. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

1.11Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.12 Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.13 Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and

provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

1.14 Taxation

As a registered charity, the charity is exempt from Income and Corporation tax to the extent that its income and gains are applicable to the charitable purposes only.

Page 9