Charity registration number 1193471
THORNTON HEATH ISLAMIC CENTRE
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023
THORNTON HEATH ISLAMIC CENTRE
LEGAL AND ADMINISTRATIVE INFORMATION
Board of Trustees
Mr H A Suleman Mr S Kassam Mr Y Haroon Mr A Haroon Mr A A Suleman
Charity number
Principal address
1193471 150 Gillett Road Thornton Heath CR7 8SN
Independent examiner
King & King Chartered Accountants & Statutory Auditors 5th Floor, Watson House 54-60 Baker Street London W1U 7BU
THORNTON HEATH ISLAMIC CENTRE
CONTENTS
| Page | |
|---|---|
| Trustees report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Notes to the financial statements | 6 - 11 |
THORNTON HEATH ISLAMIC CENTRE
TRUSTEES REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
The Trustees present their annual report and financial statements for the year ended 30 September 2023.
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 to advance the religion of Islam by means of, but not exclusively, the provision or assistance in the provision of facilities of Islamic education and worship in accordance with the teachings of the Quran and the Sunnah of the Prophet Muhammad (Peace be upon Him) as interpreted by the Sunni School of Hanafi.
The policies adopted in furtherance of these objects are to provide a place for prayers and worship and for the activities associated with our faith and there has been no change in these during the year.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Achievements and performance
Financial review
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. During the year, loft extension has been undertaken to the property held by charity to extend the place for prayers and worship.
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.
Structure, governance and management
The charity is a registered charity at Charity's commission governed by CIO-Foundation.
The Trustees who served during the year and up to the date of signature of the financial statements were: Mr H A Suleman
Mr S Kassam Mr Y Haroon Mr A Haroon Mr A A Suleman
The board has adopted procedures to ensure an appropriate mix of gender and race when recruiting and appointing trustees. Appropriate training is given to develop awareness of the charities aims and objectives. None of the Trustees has any beneficial interest in the company.
The charity's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code.
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The charity's current policy concerning the payment of trade creditors is to:
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settle the terms of payment with suppliers when agreeing the terms of each transaction;
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ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
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pay in accordance with the company's contractual and other legal obligations.
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THORNTON HEATH ISLAMIC CENTRE
TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023
The Trustees report was approved by the Board of Trustees.
Mr H A Suleman
Trustee
25 July 2024
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THORNTON HEATH ISLAMIC CENTRE
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF THORNTON HEATH ISLAMIC CENTRE
I report to the Trustees on my examination of the financial statements of Thornton Heath Islamic Centre (the charity) for the year ended 30 September 2023.
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 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) 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.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
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 that in any material respect:
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1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
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2 the financial statements do not accord with those records; or
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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 financial statements to be reached.
Milankumar Patel (Senior Statutory Auditor) For and on behalf of King & King
Chartered Accountant & Statutory Auditor 5th Floor
Watson House 54-60 Baker Street London, W1U 7BU
Dated: 25 July 2024
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THORNTON HEATH ISLAMIC CENTRE
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2023 | 2022 | ||
| Notes | £ | £ | |
| Income from: | |||
| Donations and legacies | 3 | 156,166 | 114,831 |
| Total income | 156,166 | 114,831 | |
| Expenditure on: | |||
| Charitable activities | 4 | 50,327 | 49,612 |
| Total expenditure | 50,327 | 49,612 | |
| Net income and movement in funds | 105,839 | 65,219 | |
| Reconciliation of funds: | |||
| Fund balances at 1 October 2022 | 65,219 | - | |
| Fund balances at 30 September 2023 | 171,058 | 65,219 |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
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THORNTON HEATH ISLAMIC CENTRE
BALANCE SHEET
AS AT 30 SEPTEMBER 2023
| 2023 | 2022 | ||||
|---|---|---|---|---|---|
| Notes | £ | £ | £ | £ | |
| Fixed assets | |||||
| Tangible assets | 9 | 780,067 | 655,817 | ||
| Current assets | |||||
| Cash at bank and in hand | 14,936 | 33,347 | |||
| Creditors: amounts falling due within | 11 | ||||
| one year | (303,102) | (303,102) | |||
| Net current liabilities | (288,166) | (269,755) | |||
| Total assets less current liabilities | 491,901 | 386,062 | |||
| Creditors: amounts falling due after | |||||
| more than one year | 12 | (320,843) | (320,843) | ||
| Net assets excluding pension liability | 171,058 | 65,219 | |||
| Net assets | 171,058 | 65,219 | |||
| The funds of the charity | |||||
| Unrestricted funds | 171,058 | 65,219 | |||
| 171,058 | 65,219 |
The financial statements were approved by the Trustees on 25 July 2024
Mr H A Suleman Trustee
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THORNTON HEATH ISLAMIC CENTRE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023
1 Accounting policies
Charity information
Thornton Heath Islamic Centre is a Charitable Incorporated Organisation registered under Charity Act 2011.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's CIO- Foundation, 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 charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
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 amounts 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 or grantors 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.
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.
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THORNTON HEATH ISLAMIC CENTRE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023
1 Accounting policies
(Continued)
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 no depreciation
Freehold land and assets in the course of construction are not depreciated.
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 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).
1.8 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.
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.
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THORNTON HEATH ISLAMIC CENTRE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023
1 Accounting policies
(Continued)
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 payments 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.
1.9 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.
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 Income from donations and legacies
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2023 | 2022 | |
| £ | £ | |
| Donations and gifts | 156,166 | 105,081 |
| Donated goods and services | - | 9,750 |
| 156,166 | 114,831 |
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THORNTON HEATH ISLAMIC CENTRE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023
4 Expenditure on charitable activities
| Heading | Heading | ||
|---|---|---|---|
| #ac982 | #ac982 | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Direct costs | |||
| Staff costs | 34,150 | 42,608 | |
| Utilities | 6,855 | 1,601 | |
| Website Hosting | 900 | 900 | |
| Telecommunication | 501 | 432 | |
| Printing | 120 | 500 | |
| Water rates | 3,140 | 153 | |
| Sundry expenses | 432 | 31 | |
| Bank charges | 296 | 274 | |
| Books & publications | - | 1,276 | |
| Insurance | 1,453 | 1,362 | |
| Consulting | 2,480 | 475 | |
| 50,327 | 49,612 | ||
| Analysis by fund | |||
| Unrestricted funds | 50,327 | 49,612 | |
| 5 | Net movement in funds | 2023 | 2022 |
| £ | £ | ||
| The net movement in funds is stated after charging/(crediting): |
6 Trustees
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
7 Employees
The average monthly number of employees during the year was:
| 2023 | 2022 | |
|---|---|---|
| Number | Number | |
| 6 | 6 | |
| Employment costs | 2023 | 2022 |
| £ | £ | |
| Wages and salaries | 34,150 | 42,608 |
There were no employees whose annual remuneration was more than £60,000.
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THORNTON HEATH ISLAMIC CENTRE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023
7 Employees
(Continued)
Remuneration of key management personnel
The remuneration of key management personnel was as follows:
8 Taxation
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
9 Tangible fixed assets
| Freehold land and Cost At 1 October 2022 Additions At 30 September 2023 Carrying amount At 30 September 2023 At 30 September 2022 10 Loans and overdrafts 2023 £ Other loans 253,500 Payable within one year 253,500 |
buildings £ 655,817 124,250 |
|---|---|
| 780,067 | |
| 780,067 | |
| 655,817 | |
| 2022 £ 253,500 |
|
| 253,500 |
11 Creditors: amounts falling due within one year
| Borrowings Other creditors |
2023 £ 253,500 49,602 303,102 |
2022 £ 253,500 49,602 |
|---|---|---|
| 303,102 |
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THORNTON HEATH ISLAMIC CENTRE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023
12 Creditors: amounts falling due after more than one year
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Other creditors | 320,843 | 320,843 |
13 Unrestricted funds
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
| At 1 General funds Previous year: At 1 General funds |
October 2022 Incoming resources Resources expended At 30 September 2023 £ £ £ £ 65,219 156,166 (50,327) 171,058 October 2021 Incoming resources Resources expended At 30 September 2022 £ £ £ £ - 114,831 (49,612) 65,219 |
|---|---|
14 Related party transactions
There were no disclosable related party transactions during the year (2022 - none).
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