2020-10-31-accounts - The Gloucester Muslim Welfare Association Limited

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The Gloucester Muslim Welfare Association Limited

Charity No. 256774

Company No. 00892661

Trustees' Report and Unaudited Accounts

31 October 2020

The Gloucester Muslim Welfare Association Limited Contents

	Pages
Trustees' Annual Report	2 to 3
Independent Examiner's Report		4
Statement of Financial Activities		5
Summary Income and Expenditure Account		6
Balance Sheet		7
Notes to the Accounts	8 to	14
Detailed Statement of Financial Activities	15 to	16

Page 1

The Gloucester Muslim Welfare Association Limited Trustees Annual Report

The Trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the unaudited financial statements of the charity for the year ended 31 October 2020.

REFERENCE AND ADMINISTRATIVE DETAILS

Company No. 00892661

Charity No. 256774

Principal Office

44/46 Ryecroft Road Gloucester GL1 4LY

Registered Office

44/46 Ryecroft Road Gloucester GL1 4LY

Directors and Trustees

The Directors of the charitable company are its Trustees for the purposes of charity law. The following Directors and Trustees served during the year:

M. Badat S. Badat I. Bodiat L. Haroon Y. Kholwadia I. Mehter S. Parekh Y. Patel M. Sidat Y. Topia A. Vahed

Company Secretary

A. Ginwalla

Key Management Personnel

Chairman Mr Y Patel

Accountants

Robert Powell Chartered Accountant C2 Spinnaker House Hempsted Lane Gloucester GL2 5FD

Page 2

The Gloucester Muslim Welfare Association Limited

Trustees Annual Report

Bankers

Barclays Bank Gloucester GL18 1DH

Solicitors

None

Investment Advisors

None

ACHIEVEMENTS AND PERFORMANCE

The association has continued to look after the interests of the Muslim community in Gloucester. The charity's fundraising comes from the members. There are no material investments

PLANS FOR FUTURE PERIODS

The charity's future plans are to carry on the work that has been done in the past.

The Trustees are responsible for keeping proper accounting records that 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 Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

The above report has been prepared in accordance with the provisions applicable to companies subject to the small companies regime as set out in Part 15 of the Companies Act 2006 and in accordance with the Charities SORP (FRS 102).

Signed on behalf of the board

Y. Patel Trustee 08 June 2021

Page 3

The Gloucester Muslim Welfare Association Limited Independent Examiners Report

Independent Examiner's Report to the trustees of The Gloucester Muslim Welfare Association Limited

I report to the charity trustees on my examination of the accounts of The Gloucester Muslim Welfare Association Limited for the year ended 31 October 2020 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet and the related notes.

Responsibilities and basis of report

As the trustees of the charity (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 charity 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

I have completed my examination. I can confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that:

accounting records were not kept in accordance with section 386 of the 2006 Act ; or
the accounts do not accord with those records; or
the accounts do not comply with the accounting requirements under 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
the accounts have not been prepared in accordance with the Charities SORP (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.

Robert Powell ICAEW Robert Powell Chartered Accountant C2 Spinnaker House Hempsted Lane Gloucester

GL2 5FD 08 June 2021

Page 4

The Gloucester Muslim Welfare Association Limited Statement of Financial Activities

for the year ended 31 October 2020

Unrestricte d funds 2020 £ 51,284 3,310 26,912 31,138 7,406	Restricted funds 2020 £ 9,489 - - - -	Total funds 2020 £ 60,773 3,310 26,912 31,138 7,406	Total funds 2019 £ 61,805 2,992 27,389 32,936 618
120,050 2,324 - 58,993	9,489 7,041 6,000 -	129,539 9,365 6,000 58,993	125,740 9,482 - 62,927
61,317 -	13,041 -	74,358 -	72,409 -
58,733 -	(3,552) -	55,181 -	53,331 -
58,733	(3,552)	55,181	53,331
58,733 1,092,447	(3,552) (273,703)	55,181 818,744	53,331 765,413
1,151,180	(277,255)	873,925	818,744

Page 5

The Gloucester Muslim Welfare Association Limited Summary Income and Expenditure Account

for the year ended 31 October 2020

Income Interest and investment income Gross income for the year Expenditure Total expenditure for the year Net income before tax for the year Net income for the year	2020 £ 98,401 31,138 129,539 74,358 74,358 55,181 55,181	2019 £ 92,804 32,936
		125,740
		72,409
		72,409
		53,331
		53,331

Page 6

The Gloucester Muslim Welfare Association Limited Balance Sheet

at 31 October 2020

Company No. 00892661 Notes 2020 £ Fixed assets Tangible assets 13 700,167 700,167 Current assets Debtors 14 1,458 Cash at bank and in hand 187,409 188,867 Creditors:Amount falling due within one year 15 (15,109) Net current assets 173,758 Total assets less current liabilities 873,925 Net assets excluding pension asset or liability 873,925 Total net assets 873,925 The funds of the charity Restricted funds 16 Restricted income funds (277,255) (277,255) Unrestricted funds 16 General funds 929,118 929,118 Reserves 16 Revaluation reserve 222,062 222,062 Total funds 873,925	2019 £ 700,167
	700,167 6,423 128,148
	134,571 (15,994)
	118,577 818,744
	818,744
	818,744
	(273,703)
	(273,703) 870,385
	870,385 222,062
	222,062
	818,744

These accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

For the year ended 31 October 2020 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.

Approved by the board on 08 June 2021

And signed on its behalf by:

Y. Patel Trustee

08 June 2021

Page 7

The Gloucester Muslim Welfare Association Limited Notes to the Accounts

for the year ended 31 October 2020

1 Accounting policies

Basis of preparation

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.

Change in basis of accounting or to previous accounts

There has been no change to the accounting policies (valuation rules and method of accounting) since last year and no changes have been made to accounts for previous years.

Fund accounting

Unrestricted funds These are available for use at the discretion of the trustees in furtherance of the general objects of the charity.
Designated funds These are unrestricted funds earmarked by the trustees for particular purposes. Revaluation funds These are unrestricted funds which include a revaluation reserve representing the restatement of investment assets at their market values.
Restricted funds These are available for use subject to restrictions imposed by the donor or through terms of an appeal.

Income

Recognition of Income is included in the Statement of Financial Activities (SoFA) when the charity income becomes entitled to, and virtually certain to receive, the income and the amount of the income can be measured with sufficient reliability.
Income with related Where income has related expenditure the income and related expenditure is expenditure reported gross in the SoFA. Donations and Voluntary income received by way of grants, donations and gifts is included in the legacies the SoFA when receivable and only when the Charity has unconditional entitlement to the income.
Tax reclaims on Income from tax reclaims is included in the SoFA at the same time as the donations and gifts gift/donation to which it relates. Donated services These are only included in income (with an equivalent amount in expenditure) and facilities where the benefit to the Charity is reasonably quantifiable, measurable and material.

Volunteer help The value of any volunteer help received is not included in the accounts. Investment income This is included in the accounts when receivable. Gains/(losses) on This includes any gain or loss resulting from revaluing investments to market value revaluation of fixed at the end of the year. assets Gains/(losses) on This includes any gain or loss on the sale of investments. investment assets

Page 8

The Gloucester Muslim Welfare Association Limited Notes to the Accounts

Expenditure

Recognition of Expenditure is recognised on an accruals basis. Expenditure includes any VAT which expenditure cannot be fully recovered, and is reported as part of the expenditure to which it relates.
Expenditure on These comprise the costs associated with attracting voluntary income, fundraising raising funds trading costs and investment management costs. Expenditure on These comprise the costs incurred by the Charity in the delivery of its activities and charitable activities services in the furtherance of its objects, including the making of grants and governance costs.
Grants payable All grant expenditure is accounted for on an actual paid basis plus an accrual for grants that have been approved by the trustees at the end of the year but not yet paid.
Governance costs These include those costs associated with meeting the constitutional and statutory requirements of the Charity, including any audit/independent examination fees, costs linked to the strategic management of the Charity, together with a share of other administration costs.
Other expenditure These are support costs not allocated to a particular activity.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Freehold investment property

Investment properties are measured initially at cost and subsequently at fair value at each balance sheet date and are not depreciated. All gains or losses are taken to the Statement of Financial Activities as they arise.

Stocks

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.

Trade and other debtors

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.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

Trade and other creditors

Short term creditors are measured at the transaction price. Other 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.

Page 9

The Gloucester Muslim Welfare Association Limited Notes to the Accounts

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Monetary assets and liabilities denominated in currencies other than the functional currency of the charity are translated at the rates of exchange prevailing at the end of the reporting period.

Transactions in currencies other than the functional currency of the charity are recorded at the rate of exchange on the date that the transaction occurred.

All exchange differences are are taken into account in arriving at net income/expenditure.

Leased assets

Where the charity enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease.

Leases which do not transfer substantially all the risks and rewards of ownership to charity are classified as operating leases.

Assets held under finance leases are initially recognised as assets of the charity at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet date as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the charity's policy on borrowing costs.

Assets held under finance leases are depreciated in the same way as owned assets.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term. In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis.

Pension costs

The charity operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations. The contributions are recognised as expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Receipt of donated goods, facilities and services

All donated goods, facilities and services received are recognised within incoming resources and expenditure at an estimate of the value to the charity.

2 Company status

The company is a private company limited by guarantee and consequently does not have share capital.

Page 10

The Gloucester Muslim Welfare Association Limited Notes to the Accounts

3 Statement of Financial Activities - prior year

3	Statement of Financial Activities - prior year
			Unrestricted	Restricted
			funds	funds	Total funds
			2019	2019	2019
			£	£	£
Income and endowments from:
	Donations and legacies		47,333	14,472	61,805
	Charitable activities		2,992	-	2,992
	Other trading activities		27,389	-	27,389
	Investments		32,936	-	32,936
	Other		618	-	618
Total			111,268	14,472	125,740
Expenditure on:
	Raising funds		612	8,870	9,482
	Other		62,927	-	62,927
Total			63,539	8,870	72,409
Net income			47,729	5,602	53,331
Net income before other gains/(losses)			47,729	5,602	53,331
Other gains and losses:
Net movement in funds			47,729	5,602	53,331
Reconciliation of funds:
Total funds brought forward			822,656	(279,305)	543,351
Total funds carried forward			870,385	(273,703)	596,682
4	Income from donations and legacies
		Unrestricted	Restricted	Total	Total
				2020	2019
		£	£	£	£
	Donations	45,144	-	45,144	42,368
	Income tax refunds on covenants	6,140	-	6,140	4,965
	Sundry income and donations for special appeals	-	8,357	8,357	10,870
	Donations, income tax refunds and loans	-	1,132	1,132	3,602
		51,284	9,489	60,773	61,805

Page 11

The Gloucester Muslim Welfare Association Limited

Notes to the Accounts

5 Income from charitable activities

Unrestricted £ - 3,310 3,310 Unrestricted £ 26,912 26,912 Unrestricted £ 31,138 31,138 Unrestricted £ 2,261 5,145 7,406	Total 2020 £ - 3,310 3,310 Total 2020 £ 26,912 26,912 Total 2020 £ 31,138 31,138 Total 2020 £ 2,261 5,145 7,406	Total 2019 £ 560 2,432
		2,992
		Total 2019 £ 27,389
		27,389
		Total 2019 £ 32,936
		32,936
		Total 2019 £ 618 -
		618

Restricted £ 7,041 - 7,041	Total 2020 £ 7,041 2,324 9,365	Total 2019 £ 8,870 612
		9,482

Page 12

The Gloucester Muslim Welfare Association Limited Notes to the Accounts

10 Expenditure on charitable activities

Governance costs Building costs - Minaret deposit 11 Other expenditure Employee costs Premises costs General administrative costs Legal and professional costs 12 Staff costs Salaries and wages No employee received emoluments in excess of £60,000. 13 Tangible fixed assets Cost or revaluation At 1 November 2019 At 31 October 2020 Net book values At 31 October 2020 At 31 October 2019 14 Debtors Prepayments and accrued income 15 Creditors: amounts falling due within one year Other creditors	Restricted £ 6,000 6,000 Unrestricted £ 35,246 18,814 4,433 500 58,993 35,246 35,246 2020 £ 1,458 1,458 2020 £ 15,109 15,109	Total 2020 £ 6,000 6,000 Total 2020 £ 35,246 18,814 4,433 500 58,993 £ 700,167 700,167 700,167 700,167	Total 2019 £ -
			-
			Total 2019 £ 43,520 14,531 4,396 480
			62,927
			43,520
			43,520
			£ 700,167
			700,167
			700,167
			700,167
			2019 £ 6,423
			6,423
			2019 £ 15,994
			15,994

Page 13

The Gloucester Muslim Welfare Association Limited Notes to the Accounts

16 Movement in funds

Restricted funds: Restricted income funds: Special purposes Mosque extension fund Islamic School property investment fund Total Unrestricted funds: General funds Revaluation Reserves: Revaluation fund Total revaluation reserves Total funds	At 1 November 2019 10,716 (302,514) 18,095 (273,703) 870,385 222,062 222,062 818,744	Incoming resources (including other gains/losses ) £ 8,357 1,132 - 9,489 120,050 - - 129,539	Resources expended £ (7,041) (6,000) - (13,041) (61,317) (74,358)	At 31 October 2020 £ 12,032 (307,382) 18,095
				(277,255)
				929,118 222,062
				222,062

				873,925

Purposes and restrictions in relation to the funds: Revaluation reserves Represent the amount by which investments exceed their historical cost.

Restricted funds: Special purposes Mosque extension fund Islamic School property investment fund

17 Analysis of net assets between funds

Fixed assets Net current assets	Unrestricted funds £ 700,167 161,726 861,893	Restricted funds £ - 12,032 12,032	Total £ 700,167 173,758
			873,925

Page 14

The Gloucester Muslim Welfare Association Limited Notes to the Accounts

18 Reconciliation of net debt

Reconciliation of net debt
Cash and cash equivalents Net debt	At 1 November 2019 £	Cash flows £	At 31 October 2020 £
	128,148	59,261	187,409
	128,148 128,148	59,261 59,261	187,409
			187,409

19 Related party disclosures

Controlling party

The company is limited by guarantee and has no share capital; thus no single party controls the company.

Page 15

The Gloucester Muslim Welfare Association Limited Detailed Statement of Financial Activities

for the year ended 31 October 2020

Income and endowments from: Donations and legacies Donations Income tax refunds on covenants Sundry income and donations for special appeals Donations, income tax refunds and loans Charitable activities Marriage fees Funeral income Other trading activities Membership fees Investments Rents received Other Sundry income Mortuary room refurbishment Total income and endowments Expenditure on: Costs of generating donations and legacies Donations Investment management costs Rents received Total of expenditure on raising funds Governance costs Building costs - Minaret deposit	Unrestricte d funds 2020 £ 45,144 6,140 - - 51,284 - 3,310 3,310 26,912 26,912 31,138 31,138 2,261 5,145 7,406 120,050 - - 2,324 2,324 2,324 - -	Restricted funds 2020 £ - - 8,357 1,132 9,489 - - - - - - - - - - 9,489 7,041 7,041 - - 7,041 6,000 6,000	Total funds 2020 £ 45,144 6,140 8,357 1,132 60,773 - 3,310 3,310 26,912 26,912 31,138 31,138 2,261 5,145 7,406 129,539 7,041 7,041 2,324 2,324 9,365 6,000 6,000	Total funds 2019 £ 42,368 4,965 10,870 3,602
				61,805
				560 2,432
				2,992
				27,389
				27,389
				32,936
				32,936
				618 -
				618
				125,740 8,870
				8,870
				612
				612
				9,482 -
				-

Page 16

The Gloucester Muslim Welfare Association Limited Detailed Statement of Financial Activities

Total of expenditure on charitable

activities Employee costs Priests' salaries Premises costs Rates Light, heat and power Premises repairs and maintenance Mortuary room refurbishment General administrative costs, including depreciation and amortisation General insurances Stationery and printing Subscriptions Sundry expenses Telephone, fax and broadband Legal and professional costs Independent examination fees Total of expenditure of other costs Total expenditure Net gains on investments Net income Net income before other gains/(losses) Other Gains Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward	- 35,246 35,246 1,518 8,264 5,081 3,951 18,814 3,500 264 150 350 169 4,433 500 500 58,993 61,317 - 58,733 58,733 - 58,733 1,092,447 1,151,180	6,000 - - - - - - - - - - - - - - - - 13,041 - (3,552) (3,552) - (3,552) (273,703) (277,255)	6,000 35,246 35,246 1,518 8,264 5,081 3,951 18,814 3,500 264 150 350 169 4,433 500 500 58,993 74,358 - 55,181 55,181 - 55,181 818,744 873,925	- 43,520
				43,520
				3,111 9,414 2,006 -
				14,531
				3,742 - 150 336 168
				4,396
				480
				480

				62,927
				72,409 -
				53,331
				53,331 -
				53,331
				765,413
				818,744

Page 17