OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-08-31-accounts

Charity registration number 1187279 (CIO)

LEWISHAM ISLAMIC CENTRE (LIC)

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

LEWISHAM ISLAMIC CENTRE (LIC)

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Taofik Akande
Zillur Rahman
Imam Shakeel Begg
Delilache Yacine
Ali Bajwa
Sameel Meer
Aminuddin Meer
Charity number 1187279 (CIO)
Auditor AGP Consulting
Q West
Great West Road
Brentford
TW8 0GP

LEWISHAM ISLAMIC CENTRE (LIC)

CONTENTS

Page
Trustees' report 1 - 5
Statement of Trustees' responsibilities 6
Independent auditor's report 7 - 9
Statement of financial activities 10
Balance sheet 11
Statement of cash flows 12
Notes to the financial statements 13 - 22

LEWISHAM ISLAMIC CENTRE (LIC)

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 AUGUST 2021

The Trustees present their annual report and financial statements for the year ended 31 August 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's [governing document], the Charities Act 2011 and "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 ).

Objectives and activities

The charity's objects are the furtherance of the religion of Islam and the furtherance of Islamic Education.

The Charity operates a mosque as a place of worship, to provide Islamic education to children and adults.

To provide spiritual, social, educational and moral support for Muslims and people of other faiths, of all ages, race and gender.

The advancement and a better understanding of the religion of Islam, specifically in the London Borough of Lewisham, its surrounding areas and nationally.

To foster better community relations and work for the betterment of society as a whole, including the provision of social welfare where possible.

The relief of poverty, and work towards the eradication of all forms of discrimination.

Promote such other charitable purposes as may from time to time be determined

In pursuance of these objects, the Charity hosts a range of services and activities for the benefit of the public.

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake. The Trustees confirm that they have complied with the duty in Section 4 of the Charities Act 2006 to have due regard to the Charity Commission's general guidance on public benefit Charities and Public Benefit.

This year was overshadowed by the Covid-19 pandemic, with closures of the Charity s facilities, and restrictions in place when open - social distancing requirements limited prayer capacity to that which was normal.

During these testing times following government health and safety guidelines, the centre closed its doors to the public and finally re-opened on the 26 June 2020. (before this reporting period). The reopening after performing due diligence, common sense and regulatory risk assessments measures ha d provided for a much needed , though reduced capacity welcome for the users of the faclities. .

The congregants and our supporters generously continue d to give donations to the centre , but with its reduced congregation this i impacted the amount of donations being received.

Nevertheless, Lewisham Islamic Centre and “The Point” Catford came together to help support our NHS workers and those vulnerable and financially impacted by this pandemic.

Food parcels worth over £ 5,000 were distributed to the vulnerable and those financially impacted by this pandemic.

The government-initiated furlough scheme has provided much relief for the centre and its staff but with the scheme to end in October inevitable cuts to services and staff may be having to be made.

We continued to offer a wide range of services for Muslims and non-Muslims, often in partnership with others. The Charity places strong emphasis on building relationships with others so we can work together for the common good.

LEWISHAM ISLAMIC CENTRE (LIC)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Achievements and performance

The services and activities of LIC continue to run under the following departments:

Da’wah (Islamic Propagation) Office

This office is overall lead by the Centre Imam, who is supported by two other deputy Imams, who manage spiritual and moral development of the community through leading:

E ducation & Youth Development

LIC has a number of educational projects serving all sections of the community. The projects are run by professionals with the support of dedicated volunteers helping meet the needs of the community

The Young Muslim Academy & Lewisham Hifz Institute (LHI) - t he YMA is an evening and weekend supplementary school for children aged 5- 16 years old providing tuition in Quran and Islamic studies , serving approximately 400 students.

Adult Education & Halaqa - The Adult education focuses on Arabic classes for in the evenings and weekends provision are in place for approximately 100 students.

LEWISHAM ISLAMIC CENTRE (LIC)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Community engagement

We are working on two fronts; providing events and activities that will engage and enthuse our community members and also working with partners and other bodies for the betterment of our centre. Community events and engagements:

LIC runs a Youth Club, Scouts group, LIC Seniors Football Club for the over 40's, there is a Mother & Toddler Group providing for 8-10 toddlers with a contribution required of only £1 a week

Mother and toddler group runs every Thursday 11am to 1pm, in the community club. They read Quran and ‎Stories to children and spend time talking and doing other activities.

On average 8 – 10 sisters attend regularly and make a contribution of £1 a week , Deen and Dinner , this is a ladies event offeres a month ly social event for ladies to h ave fun and share food with crèche facilities for their children. This event has gained popularity and attracts between 30 – 50 every month.

All these programmes have helped to build and promote strong cohesion in the community. LIC has become reputable among its surrounding and wider communit y groups including other Mosques and centres because of its ability to utilise infrastructure and experience to deliver tailored programmes that foster unit y

E conomic Growth & Development

LIC has provided space for local business to enable them to provide vital services for the community, specifically

An – Nur Gym – providing martial arts and self-defence classes for the public benefit (Muslims and non-Muslims alike), the services caters for male and female as well as holding special sessions for children

WOW bookshop – information hub and one stop shop for Islamic clothing, books and miscellaneous items.

Estate management – rental income from flats has been a vital source of income, at the same time we provided crucial service to the community by housing local authority refugee families.

The Charity has flats adjacent to the main mosque, these have been acquired for investment and will ultimately be part of the mosque's expansion programme. Currently it yields and income of circa £33k (6 months) which gives a yield of 4% on an investment value of £1.6m. Which is acceptable for the charity.

Financial review

At the balance sheet date, the charity had net assets of £ 3,538,880 .

The trustees consider the financial performance of the charity during the period to be satisfactory.

But, to achieve this, due to the Coronavirus Pandemic carried out financial reviews of the prevailing situation and in order to safeguard the Charity’s assets made some hard decisions to curtail and reduce services in order to minimise costs which regrettably meant making some redundancies. Core staff were retained to continue providing reduced essential services.

It is the policy of the Charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Charity ’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

The Trustees have assessed the major risks to which the Charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

LEWISHAM ISLAMIC CENTRE (LIC)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Risk

The trustees acknowledge their responsibility to manage the risks faced by the charity. They have identified and given due consideration to the risks to which the charity may be exposed and are satisfied that systems are in place to mitigate exposure to those risks.

The Charity identifies and monitors risks in the areas of compliance, reputation, financial management, governance and operations, and puts in place measures to mitigate these risks, especially those deemed as major. These measures, backed by regular review, ensure strong protection of the charity.

Amongst the key measures the Charity has in place are:

Security is kept continuously under review. The Charity maintains close contacts with the local police force and other agencies, such as the Tension Monitoring Group.

Plans for future periods

We aim to consolidate and improve our end user services by utilizing our resources more efficiently.

The trustees are currently exploring the possibility of building a purpose-built Centre servicing all the Muslim community’s needs. Designs for the new building have been prepared for consultation with the community.

A new purpose built £10 million project was approved by the Trustees 11th June 2019 which will encompass a multi-purpose Community and Religious Facility as well as a Residential Complex comprising a number of apartments.

The project is currently progressing through a formal planning proposal with the local council planning department who have expressed their support for the scheme. The design incorporates Islamic Architecture while opting for more modern building features in place of overt religious symbols such as domes or minarets.

The development seeks to replace an existing outdated facility which has served the community since the early 1980s.

The new centre will include prayer halls, a library, training centre, classrooms, lecture and multifunction halls, a cafe, crèche/nursery, and sports facilities.

Another key part of the development is an apartment block comprising of 1,2 and 3 bed apartments which will serve as a key driver to both fund the project and going forward as source of income for the LIC.

The development is estimated to cost £10M and subject to the availability of funding and will take 2-3 years to complete.

Structure, governance and management

The Charity was formaly registered as a Charitable Incorporated Organisation ("CIO") on 9 January 2020. The reporting period is for 12 months since the initial nil report. However this is the first period of activity of the Lewisham Islamic Centre Charity CIO and results presented are from the 1 March 2021 to 31st August 2021. The former unincorporated Charity was formaly closed on the 28th February 2021 and an application to remove from the registrar of the Charities Commission has been made. All assets and liabilities from the Old Charity have been transferred to the new CIO registered Charity.

LEWISHAM ISLAMIC CENTRE (LIC)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

The Trustees who served during the year and up to the date of signature of the financial statements were: Taofik Akande

Zillur Rahman

Imam Shakeel Begg Delilache Yacine Ali Bajwa Sameel Meer Aminuddin Meer

The appointment of Trustees is set out in the constitution of the Charity . Trustees must be a practicing Muslims following the Sunni school of thought, must be a resident within the London Borough of Lewisham, or if the charity trustees wish to appoint someone who lives outside this Borough as a charity trustee, then this person must be able to establish an association with the LIC and must be unanimously appointed by all of the Charity's trustees.

Trustee's set policy, processes and make financial decisions. T he day-to-day management of the charity was delegated to the Chief Imam, who is also a Trustee, he is assisted in admin duties by an accountant, who is also a Trustee and admin manager who overseas staff and their duties and other administrative matters.

There is an induction program for new trustees, which includes reviewing key documents that are considered essential, and expectations for appropriate training are set out. The Board of Trustees typically meets every month to discuss the progress of the Charity and to consider any changes that maybe necessary, arising out of review of results and other factors.

Supplier payment policy

The Charity's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

The Charity's current policy concerning the payment of trade creditors is to:

Trade creditors of the company at the year end were equivalent to 1 day's purchases, based on the average daily amount invoiced by suppliers during the year.

The Trustees' r eport was approved by the Board of Trustees.

Taofik Akande Trustee 28 June 2022

Zillur Rahman Trustee

LEWISHAM ISLAMIC CENTRE (LIC)

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 AUGUST 2021

The Trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources of the Charity for that year.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

LEWISHAM ISLAMIC CENTRE (LIC)

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF LEWISHAM ISLAMIC CENTRE (LIC)

Opinion

We have audited the financial statements of Lewisham Islamic Centre (LIC) (the ‘Charity’) for the year ended 31 August 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice) .

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 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 that fact.

We have nothing to report in this regard.

LEWISHAM ISLAMIC CENTRE (LIC)

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF LEWISHAM ISLAMIC CENTRE (LIC)

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the s tatement of Trustees' r esponsibilities, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below .

We gained and understanding of the legal and regulatory framework applicable to the Charity and the industry in which it operates, drawing on our sector experience and considered the risk of acts by the Charity that could be contrary to these laws and regulations, including fraud. We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including but not limited to, the Charity Commission, and other relevant laws and regulations.

We made enquiries of trustees, with regards to compliance with the above laws and regulations and corroborated any necessary evidence to relevant information, for example, minutes of the trustee meetings. legal reports provided to the Charity and correspondence between the Charity and its solicitors. Audit procedure performed by the engagement team included:

Discussion with management, including consideration of known or suspected instances of noncompliance with laws and regulations and fraud;

Review of financial statement disclosures to underlying supporting documentation; Challenging assumptions and judgements made by trustees in their significant accounting estimates;

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

LEWISHAM ISLAMIC CENTRE (LIC)

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF LEWISHAM ISLAMIC CENTRE (LIC)

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matter s

Your attention is drawn to the fact that the charity has prepared financial statements 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)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Forhad Ahmed (Senior Statutory Auditor) for and on behalf of AGP Consulting 28 June 2022 Chartered Accountants Statutory Auditor Q West Great West Road Brentford TW8 0GP

AGP Consulting is eligible for appointment as auditor of the Charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

LEWISHAM ISLAMIC CENTRE (LIC)

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income from:
Donations and legacies
3
167,995
154,692
Charitable activities
4
34,530
6,355
Other trading activities
5
17,033
-
Total income
219,558
161,047
Expenditure on:
Raising funds
6
5,349
-
Charitable activities
7
149,587
36,386
Total expenditure
154,936
36,386
Net incoming resources before transfers
64,622
124,661
Gross transfers between funds
(255,425)
255,425
Net (expenditure)/income for the year/
Net movement in funds
(190,803)
380,086
Funds transferred in from previous charity
3,331,107
18,490
Fund balances at 31 August 2021
3,140,304
398,576		 Total
2021
£
322,687
40,885
17,033
380,605
5,349
185,973
191,322
189,283
-
189,283
3,349,597
3,538,880

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

LEWISHAM ISLAMIC CENTRE (LIC)

BALANCE SHEET

AS AT 31 AUGUST 2021

2021
Notes £ £
Fixed assets
Tangible assets 12 1,195,893
Investment properties 13 1,615,000
2,810,893
Current assets
Debtors 14 42,959
Cash at bank and in hand 715,044
758,003
Creditors: amounts falling due within one year 15 (30,016)
Net current assets 727,987
Total assets less current liabilities 3,538,880
Income funds
Restricted funds 398,576
Unrestricted funds 3,140,304
3,538,880
The financial statements were approved by the Trustees on 28 June 2022
Taofik Akande Zillur Rahman
Trustee Trustee

LEWISHAM ISLAMIC CENTRE (LIC)

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 AUGUST 2021

Notes
Cash flows from operating activities
Cash generated from/(absorbed by) operations
20
Investing activities
Purchase of tangible fixed assets
Repayment of investment loans and receivables
Net cash used in investing activities
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash transferred in
Cash and cash equivalents at end of year
The notes on pages 13 to 22 form part of these financial statements.		 2021
£
(9,749)
(10,000)		 £
237,386
(19,749)
-
217,637
497,407
715,044

LEWISHAM ISLAMIC CENTRE (LIC)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

Charity information

Lewisham Islamic Centre (LIC) is a registered as as Charitable Incorporated Organisation ("CIO") Foundation on the 9 January 2020 under registration number CE020242 and is registered with the Charities Commission under registration number 112729. It's registered address is 363-365 Lewisham High Street, London, SE13 6NZ.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Charity's [governing document], the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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). The Charity is a Public Benefit Entity as defined by FRS 102.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling , which is the functional currency of the Charity . Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Charity.

1.4 Income

Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

LEWISHAM ISLAMIC CENTRE (LIC)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

(Continued)

Legacies are recognised on receipt or otherwise if the Charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings Nil Plant and equipment 25-33% on a reducing balance basis Fixtures and fittings 25% on a reducing balance basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .

1.7 Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

No depreciation is provided on the charity's freehold properties since in the opinion of the trustees the expected useful lives are sufficiently long and the estimated residual value values are sufficiently high that any such depreciation would be immaterial. The trustees undertake an annual impairment review of these properties.

1.8 Impairment of fixed assets

At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

LEWISHAM ISLAMIC CENTRE (LIC)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

(Continued)

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10 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 instruments.

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

Basic financial assets, which include debtors 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. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Charity ’s contractual obligations expire or are discharged or cancelled.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

LEWISHAM ISLAMIC CENTRE (LIC)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

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 associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

Unrestricted
Restricted
funds
funds
2021
2021
£
£
Donations and gifts
150,924
142,743
Government grants
17,071
11,949
167,995
154,692
Donations and gifts
General donations
137,271
-
Mosque development fund
-
139,793
Funeral fund
-
2,950
Gift aid
13,653
-
150,924
142,743		 Total
2021
£
293,667
29,020
322,687
137,271
139,793
2,950
13,653
293,667

LEWISHAM ISLAMIC CENTRE (LIC)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

4 Charitable activities

5
6		 Worship
Educational
Total
2021
2021
2021
£
£
£
Sales within charitable activities
1,565
6,355
7,920
Charitable rental income
32,965
-
32,965
34,530
6,355
40,885
Analysis by fund
Unrestricted funds
34,530
-
34,530
Restricted funds
-
6,355
6,355
34,530
6,355
40,885
Other trading activities
Unrestricted
funds
2021
£
Fundraising events
17,033
Raising funds
Unrestricted
funds
2021
£
Fundraising and publicity
Staging fundraising events
2,500
Expenses in generating property income
2,849
Fundraising and publicity
5,349
5,349

LEWISHAM ISLAMIC CENTRE (LIC)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

7 Charitable activities

Educational
Worship Events and
outreach
2021
2021
2021
£
£
£
Staff costs
30,565
17,608
-
Bad debts
4,965
-
-
Iftar, Eid, Media and other outreach work
-
-
19,294
35,530
17,608
19,294
Share of support costs (see note 9)
857
106,234
-
Share of governance costs (see note 9)
6,450
-
-
42,837
123,842
19,294
Analysis by fund
Unrestricted funds
6,451
123,842
19,294
Restricted funds
36,386
-
-
42,837
123,842
19,294		 Total
2021
£
48,173
4,965
19,294
72,432
107,091
6,450
185,973
149,587
36,386
185,973

8 Description of charitable activities

Educational

Educational

Educational

Worship Worship

Worship

Events and outreach

Events and outreach work

LEWISHAM ISLAMIC CENTRE (LIC)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

9 Support costs

Support
costs
Governance
costs
£
£
Staff costs
75,952
-
Depreciation
2,870
-
Rates, light and heat
4,959
750
Premises repairs and maintenance
6,861
-
Telephone and internet
3,490
100
Insurance
1,317
-
Professional fees and subscriptions
4,212
2,000
Stationery and miscellaneous
3,634
-
Equipment hire
1,865
-
Bank charges
1,531
-
Travel and transport
400
-
Audit fees
-
3,600
107,091
6,450
Analysed between
Charitable activities
107,091
6,450		 2021
£
75,952
2,870
5,709
6,861
3,590
1,317
6,212
3,634
1,865
1,531
400
3,600
113,541
113,541

Governance costs includes payments to the auditors of £ 3,600 for audit fees.

10 Trustees

No remuneration or expenses were paid to any trustees for their services as trustees. The following trustees were employed by the charity and were remunerated for services provided

Pension
Remuneration Contributions
Mr S Begg (Imam) £16,000 £-
Mr Y Delilache (Bookkeeper) £3,706 £-

11 Employees

The average monthly number of employees during the year was:

Education
Worship
Administrative
Total		 2021
Number
18
1
1
20

LEWISHAM ISLAMIC CENTRE (LIC)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

11 Employees (Continued)
Employment costs 2021
£
Wages and salaries 115,284
Social security costs 7,811
Other pension costs 1,030
124,125

There were no employees whose annual remuneration was more than £60,000.

12
Tangible fixed assets
Freehold land
and buildings
£
Cost
At 1 September 2020
1,178,162
Additions
9,120
At 31 August 2021
1,187,282
Depreciation and impairment
At 1 September 2020
-
Depreciation charged in the year
-
At 31 August 2021
-
Carrying amount
At 31 August 2021
1,187,282
13
Investment property
Fair value
At 1 September 2020
Net gains or losses through fair value adjustments
At 31 August 2021		 Plant and
equipment
Fixtures and
fittings
£
£
63,187
59,524
-
629
63,187
60,153
58,619
53,240
1,142
1,728
59,761
54,968
3,426
5,185		 Total
£
1,300,873
9,749
1,310,622
111,859
2,870
114,729
1,195,893
2021
£
1,096,488
518,512
1,615,000

Investment property comprises freehold property split into 5 flats, which are adjacent to the masjid, these are rented out.. The fair value of the investment property has been arrived at on the basis of a valuation carried out at in Jun 2021 by the letting department of a local estate agents and valuers, who are not connected with the Charity. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

LEWISHAM ISLAMIC CENTRE (LIC)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

13 Investment property (Continued)
2021
£
Freehold 1,615,000
14 Debtors
2021
Amounts falling due within one year: £
Trade debtors 1,441
Other debtors 40,201
Prepayments and accrued income 1,317
42,959

15 Creditors: amounts falling due within one year

Trade creditors
Accruals and deferred income		 2021
£
465
29,551
30,016

16 Retirement benefit schemes

Defined contribution schemes

The Charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Charity in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £1,030.

17 Analysis of net assets between funds

Unrestricted
funds
Restricted
funds
2021
2021
£
£
Fund balances at 31 August 2021 are represented by:
Tangible assets
1,195,893
-
Investment properties
1,615,000
-
Current assets/(liabilities)
329,413
398,574
3,140,306
398,574		 Total
2021
£
1,195,893
1,615,000
727,987
3,538,880

LEWISHAM ISLAMIC CENTRE (LIC)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

18 Capital commitments 2021
£
At 31 August 2021 the Charity had capital commitments as follows:
Contracted for but not provided in the financial statements:
Acquisition of property, plant and equipment 10,000,000

At the balance sheet date the above projected capital commitments were approved by the trustees in relation to the development of a new building at the current site of the mosque.

19 Related party transactions

There was one trustee who has children who attend the school operated by the Charity, the fees paid are the normal rate charged by the school.

20
Cash generated from operations
Surplus for the year
Adjustments for:
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase) in debtors
Increase in creditors
Debtors/creditors transferred in
Cash generated from/(absorbed by) operations
21
Analysis of changes in net funds/(debt)
The Charity had no debt during the year.		 2021
£
189,283
2,870
(32,959)
30,016
48,176
237,386