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2022-12-31-accounts

Company registration number: CE023545 Charity registration number: 1190799

Muslim Cultural & Welfare Association of Sutton (MCWAS)

Annual Report and Financial Statements

for the Year Ended 31 December 2022

A S Partnership Ltd 158 Stafford Road Wallington Surrey SM6 9BS

Muslim Cultural & Welfare Association of Sutton (MCWAS)

Contents

Reference and Administrative Details 1
Trustees' Report 2 to 6
Independent Examiner's Report 7 to 8
Statement of Financial Activities 9 to 10
Balance Sheet 11
Notes to the Financial Statements 12 to 19
Detailed Statement of Financial Activities 20 to 23

Muslim Cultural & Welfare Association of Sutton (MCWAS)

Reference and Administrative Details

Chairman Dr M R Moola Trustees O Koto M Khan H M A Yaseen F Killedar Dr S M Mohiud-Din Dr M R Moola F B Ajmi N Ahmed Syeda

Charity Registration Number 1190799

Company Registration CE023545 Number

The charity is incorporated in United Kingdom.

Registered Office 80 Ruskin Road Carshalton Surrey SM5 3DH Independent Examiner A S Partnership Ltd 158 Stafford Road Wallington Surrey SM6 9BS

Page 1

Muslim Cultural & Welfare Association of Sutton (MCWAS)

Trustees' Report

The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements and auditors' report of the charitable company for the year ended 31 December 2022.

Structure, governance and management

Governing Document

MCWAS was first registered with the Charity Commission in 1981 under charity number 0291533. In August 2020 a new Charitable Incorporated Organisation (CIO) was registered with a board of three founding trustees. Elections were held appointing three additional trustees by the new membership in line with the new Constitution and further elections have taken place to replace and onboard additional trustees.

Organisational structure

The charity is run by eight Trustees (as at publication of this report) who are responsible for the general control and management of the charity. The Trustees give their time freely and receive no remuneration or other financial benefits.

In September 2021 to assist with the running of the centre and to enable MCWAS to provide quality and consistent services a full-time Centre Manager was employed. The role of the Centre Manager is to administer all services provided by MCWAS ensuring that all operational policies and procedures are adhered to. The Trustees delegate the day-to-day running of the centre to the Centre Manager, who acts under the instructions and the oversight of the Trustees. The board meets regularly with the Centre Manager to discuss decisions on the management and operations of the centre.

MCWAS is in the process of completing all financial and legal requirements with unwinding the legacy entity. The transfer of title for both freehold property assets held by MCWAS was submitted to HM Land Registry in October 2022, where the asset transfers have been reflected in the 2022 accounts.

Page 2

Muslim Cultural & Welfare Association of Sutton (MCWAS)

Trustees' Report

Objectives and Activities

Vision & Aims

Our vision is for God-consciousness to flourish in the communities of Sutton and its surrounding areas. We want our Lord to be worshipped as He deserves, by pursuing knowledge, purpose and excellent conduct in a peaceful and caring environment. Our mission is to serve, educate and inspire our local community so that we are all working together towards our vision.

MCWAS has a rich history and has become one of the leading and most active Islamic institutions in the London Borough of Sutton and surrounding areas. We aim to:

In February 2022 the Board of Trustees produced the MCWAS Strategic Plan for 2022-23, which is shared on our website. This was a product of workshops held at the centre where we invited the community to participate in a feedback survey. The survey was completed by approximately 100 participants across the wider MCWAS community providing review and suggested improvements on current and future services at MCWAS. Over this year we have improved on and implemented a number of new services to ensure we are meeting the strategic objectives identified in the plan. The introduction of some new services have required the recruitment of part-time staff, mainly to assist with the provisioning of children's educational activities which have been very well-received by the community.

The objectives of the MCWAS Strategic Plan 2022/23 are to:

Consistent and quality core services are the foundation of a relevant community centre and the 2022/23 Strategic Plan aims to deliver these services

Activities and achievements - how our activities deliver public benefit

The charity carries out a wide range of activities in pursuance of its charitable aims. The Trustees consider that these activities, summarised below, provide benefit both to those who worship at our centre and to the wider community. MCWAS is also committed to various fundraising and charitable activities in support of the local community and beyond.

Page 3

Muslim Cultural & Welfare Association of Sutton (MCWAS)

Trustees' Report

Children and Youth Programmes

Community Events

A wide range of community events including classes and workshops were held at the centre in 2022 and include.

Page 4

Muslim Cultural & Welfare Association of Sutton (MCWAS)

Trustees' Report

Ramadan 2022

School & Scouts Visits

We will continue to expand and extend our service offerings to the community to ensure we provide a number of sustainable services with high quality.

Financial review

Activities of charity were transferred from the legacy entity to the newly set-up CIO from 12 August 2020, pending transfer of properties, novation of tenancy agreements and bank accounts.

The accounts of the charity show the net assets of MCWAS of £922,359.

Gross income from donations including rental income totalled £273,039.

Total expenditure including support costs had totalled £179,800.

Statement of trustees' responsibilities

The trustees (who are also the directors of Muslim Cultural & Welfare Association of Sutton (MCWAS) for the purposes of company law) 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), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

Page 5

Muslim Cultural & Welfare Association of Sutton (MCWAS)

Independent Examiner's Report to the trustees of Muslim Cultural & Welfare Association of Sutton (MCWAS) ('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

Since the Company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of , which is one of the listed bodies.

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 Muslim Cultural & Welfare Association of Sutton (MCWAS) as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. 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

  4. 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.

Page 7

Muslim Cultural & Welfare Association of Sutton (MCWAS)

Statement of Financial Activities for the Year Ended 31 December 2022 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
3
Other income
4
Total income
Expenditure on:
Faith & Worship
Community
Governance costs
Staff Costs
Depreciation, amortisation and other similar costs
Total expenditure
Net income
Transfers between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
13		 Unrestricted
funds
£
267,489
5,550
273,039
80,342
48,389
9,750
37,096
4,223
179,800
93,239
785,611
878,850
43,509
922,359		 Total
2022
£
267,489
5,550
273,039
80,342
48,389
9,750
37,096
4,223
179,800
93,239
785,611
878,850
43,509
922,359

The notes on pages 12 to 19 form an integral part of these financial statements. Page 9

Muslim Cultural & Welfare Association of Sutton (MCWAS)

Statement of Financial Activities for the Year Ended 31 December 2022 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
3
Total income
Expenditure on:
Faith & Worship
Community
Governance costs
Investment management costs
Staff Costs
Total expenditure
Net income
Net movement in funds
Reconciliation of funds
Total funds carried forward
13		 Unrestricted
funds
£
123,284
123,284
34,726
15,633
5,481
38
23,897
79,775
43,509
43,509
43,509		 Total
2021
£
123,284
123,284
34,726
15,633
5,481
38
23,897
79,775
43,509
43,509
43,509

All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2021 is shown in note 13.

The notes on pages 12 to 19 form an integral part of these financial statements. Page 10

BalanceSheetasat31"Dec ember20 22
2022 202t
Note
f,
Fixedassets
Tangibleassets 9 7gg,2g1
Currentassets
Debtors 10 396,323 123,294
Creditors:Amountsfallingduewithinoneyear 11 (272,245) (79,775
Netcurrentassets 124,078 43,509
Netassets __22;se_____43;0e
Funds of thecharity:
Unrestrictedincomefunds
Unrestricted funds 922,359 43,509
Total funds 13 922,359 43,509

Muslim Cultural & Welfare Association of Sutton (MCWAS)

Notes to the Financial Statements for the Year Ended 31 December 2022

1 Charity status

The charity is incorporated as a Charitable Incorporated Organisation (CIO) in United Kingdom and consequently does not have share capital.

The address of its registered office is: 80 Ruskin Road Carshalton Surrey SM5 3DH

These financial statements were authorised for issue by the trustees on 29 September 2023.

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

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)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Basis of preparation

Muslim Cultural & Welfare Association of Sutton (MCWAS) meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.

Page 12

Muslim Cultural & Welfare Association of Sutton (MCWAS)

Notes to the Financial Statements for the Year Ended 31 December 2022

Exemption from preparing a cash flow statement

The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.

Income and endowments

Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.

Donations and legacies

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees meetings and reimbursed expenses.

Page 13

Muslim Cultural & Welfare Association of Sutton (MCWAS)

Notes to the Financial Statements for the Year Ended 31 December 2022

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets costing £0.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Page 14

Muslim Cultural & Welfare Association of Sutton (MCWAS)

Notes to the Financial Statements for the Year Ended 31 December 2022

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity.

Pensions and other post retirement obligations

The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3 Income from donations and legacies

Donations and legacies;
Gift aid reclaimed
Regular giving and capital donations
Total for period ended 31 December 2022
Total for period ended 31 December 2021		 Unrestricted
funds
General
£
18,483
249,006
267,489
123,284		 Total
funds
£
18,483
249,006
267,489
123,284

Page 15

Muslim Cultural & Welfare Association of Sutton (MCWAS)

Notes to the Financial Statements for the Year Ended 31 December 2022

4 Other income

Rental income
Total for period ended 31 December 2022		 Unrestricted
funds
General
£
5,550
5,550		 Total
funds
£
5,550
5,550

5 Trustees remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

6 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Wages and salaries
Pension costs		 2022
£
37,096
1,113
38,209		 2021
£
23,897
350
24,247

1 (2021 - 1) of the above employees participated in the Defined Contribution Pension Schemes.

No employee received emoluments of more than £60,000 during the year.

Page 16

Muslim Cultural & Welfare Association of Sutton (MCWAS)

Notes to the Financial Statements for the Year Ended 31 December 2022

7 Independent examiner's remuneration

7 Independent examiner's remuneration
2022 2021
£ £
Other fees to examiners
All other assurance services 300 300

8 Taxation

The charity is a registered charity and is therefore exempt from taxation.

9 Tangible fixed assets

Cost
At 1 January 2022
Additions
At 31 December 2022
Depreciation
Charge for the year
At 31 December 2022
Net book value
At 31 December 2022
At 31 December 2021		 Land and
buildings
£
785,611
-
785,611
-
-
785,611
785,611		 Furniture
and
equipment
£
-
16,893
16,893
4,223
4,223
12,670
-		 Total
£
785,611
16,893
802,504
4,223
4,223
798,281
785,611

Included within the net book value of land and buildings above is £785,611 (2021 - £Nil) in respect of freehold land and buildings and £Nil (2021 - £Nil) in respect of leaseholds.

Page 17

Muslim Cultural & Welfare Association of Sutton (MCWAS)

Notes to the Financial Statements for the Year Ended 31 December 2022

10 Debtors

10 Debtors
Income due from legacy
11 Creditors: amounts falling due within one year
Expenditure due to legacy
Pension contributions unpaid
Accruals		 2022
£
396,323
2022
£
267,207
-
5,038
272,245		 2021
£
123,284
2021
£
78,001
466
1,308
79,775

12 Pension and other schemes

Defined contribution pension scheme

The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £1,113 (2021 - £350).

Page 18

Muslim Cultural & Welfare Association of Sutton (MCWAS)

Notes to the Financial Statements for the Year Ended 31 December 2022

13 Funds

13 Funds
Unrestricted funds
General
Unrestricted funds
General		 Balance at
1 January
2022
£
43,509		 Incoming
resources
£
Resources
expended
£
Transfers
£
Balance at
31
December
2022
£
273,039
(179,800)
785,611
922,359
Incoming
resources
£
Resources
expended
£
Balance at
31
December
2021
£
123,284
(79,775)
43,509		 Balance at
31
December
2022
£
922,359

Page 19

Muslim Cultural & Welfare Association of Sutton (MCWAS)

Detailed Statement of Financial Activities for the Year Ended 31 December 2022

Income and Endowments from:
Donations and legacies (analysed below)
Other income (analysed below)
Total income
Expenditure on:
Faith & Worship
Community
Governance costs
Staff Costs
Depreciation, amortisation and other similar costs
Other
Total expenditure
Net income
Transfers between funds (analysed below)
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Total
2022
£
267,489
5,550
273,039
80,342
48,389
9,750
37,096
4,223
-
179,800
93,239
785,611
878,850
43,509
922,359		 Total
2021
£
123,284
-
123,284
34,726
15,633
5,481
23,897
-
38
79,775
43,509
-
43,509
-
43,509

This page does not form part of the statutory financial statements. Page 20

Muslim Cultural & Welfare Association of Sutton (MCWAS)

Detailed Statement of Financial Activities for the Year Ended 31 December 2022

Donations and legacies
Committed giving
Jumah & cash collection
Iftar Food Pack Donations
Tuition fees
Gift Aid tax reclaimed
Other income
Rental income
Faith & Worship
Direct
Ramadan costs
Calendar costs
Activities
Ilm Hub resources
Purchases
Wages and subcontractor
Subcontractor - security
Support
Premises: 80 & 80A Ruskin Road
Water rates
Rent and rates
Light, heat and power
Insurance
Repairs and maintenance
Rubbish disposal		 Total
2022
£
82,059
81,804
29,670
55,473
18,483
267,489
5,550
5,550
6,335
800
19,458
6,540
-
22,336
1,260
56,729
200
2,771
1,815
1,889
4,888
650
12,213		 Total
2021
£
23,184
82,885
8,765
8,450
-
123,284
-
-
600
1,350
1,330
-
144
1,935
960
6,319
568
(2,731)
10,732
3,064
8,669
-
20,302

This page does not form part of the statutory financial statements. Page 21

Muslim Cultural & Welfare Association of Sutton (MCWAS)

Detailed Statement of Financial Activities for the Year Ended 31 December 2022

General
Small equipment and Consumable
Computer software and maintenance costs
Cleaning
Communication
Printing, postage and stationery
Community
Zakat & Fithra
Donations to other charities
Iftar Food Pack Expense
Food Expense
Governance
Staff pensions (Defined contribution) - pension scheme 1
Insurance
Accountancy fees
Independent examiner's fee
Legal and professional fees
Bank charges
Trade subscriptions
Staff costs
Wages and salaries
Depreciation
Depreciation, amortisation and other similar costs		 Total
2022
£
1,881
348
7,997
989
185
11,400
80,342
8,089
10,220
30,080
-
48,389
1,113
188
2,239
300
-
5,625
285
9,750
37,096
37,096
4,223
4,223		 Total
2021
£
1,857
189
4,034
1,407
618
8,105
34,726
5,637
44
8,765
1,187
15,633
350
-
1,008
300
800
2,953
70
5,481
23,897
23,897
-
-

This page does not form part of the statutory financial statements. Page 22

Muslim Cultural & Welfare Association of Sutton (MCWAS)

Detailed Statement of Financial Activities for the Year Ended 31 December 2022

Other
Sundry expenses
Transfers between funds
Funds - Transfer from another fund		 Total
2022
£
-
-
785,611		 Total
2021
£
38
38
-

This page does not form part of the statutory financial statements. Page 23