2021-10-31-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 2021

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 financial statements of The Gloucester Muslim Welfare Association Limited for the year ended 31 October 2021 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 financial statements in accordance with the requirements of the Companies Act 2006 ('the 2006 Act.

Having satisfied myself that the financial statements 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 financial statements 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 financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements under section 396 of the 2006 Act other than any requirement that the financial statements give a 'true and fair' view which is not a matter considered as part of an independent examination; or
the financial statements 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 financial statements to be reached.

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

GL2 5FD 09 May 2022

Page 4

The Gloucester Muslim Welfare Association Limited Statement of Financial Activities

for the year ended 31 October 2021

Unrestricted funds 2021 £ 53,396 2,377 25,875 20,535 2,824	Restricted funds 2021 £ 3,825 - - - -	Total funds 2021 £ 57,221 2,377 25,875 20,535 2,824	Total funds 2020 £ 60,773 3,310 26,912 31,138 7,406
105,007 6,096 - 59,687	3,825 2,500 15,150 -	108,832 8,596 15,150 59,687	129,539 9,365 6,000 58,993
65,783 -	17,650 -	83,433 -	74,358 -
39,224 -	(13,825) -	25,399 -	55,181 -
39,224	(13,825)	25,399	55,181
39,224 1,151,180	(13,825) (277,255)	25,399 873,925	55,181 818,744
1,190,404	(291,080)	899,324	873,925

Page 5

The Gloucester Muslim Welfare Association Limited Summary Income and Expenditure Account

for the year ended 31 October 2021

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	2021 £ 88,297 20,535 108,832 83,433 83,433 25,399 25,399	2020 £ 98,401 31,138
		129,539
		74,358
		74,358
		55,181
		55,181

Page 6

The Gloucester Muslim Welfare Association Limited Balance Sheet

at 31 October 2021

Company No. 00892661 Notes 2021 £ Fixed assets Tangible assets 13 700,167 700,167 Current assets Debtors 14 7,916 Cash at bank and in hand 374,531 382,447 Creditors:Amount falling due within one year 15 (183,290) Net current assets 199,157 Total assets less current liabilities 899,324 Net assets excluding pension asset or liability 899,324 Total net assets 899,324 The funds of the charity Restricted funds 17 Restricted income funds (291,080) (291,080) Unrestricted funds 17 General funds 968,342 968,342 Reserves 17 Revaluation reserve 222,062 222,062 Total funds 899,324	2020 £ 700,167
	700,167 1,458 187,409
	188,867 (15,109)
	173,758 873,925
	873,925
	873,925
	(277,255)
	(277,255) 929,118
	929,118 222,062
	222,062
	873,925

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 2021 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 09 May 2022

And signed on its behalf by:

Y. Patel Trustee 09 May 2022

Page 7

The Gloucester Muslim Welfare Association Limited Notes to the Accounts

for the year ended 31 October 2021

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 expenditure which 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
Income and endowments from: Donations and legacies Charitable activities Other trading activities Investments Other Total Expenditure on: Raising funds Charitable activities Other Total Net income Net income before other gains/(losses) Other gains and losses: Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward 4 Income from donations and legacies Donations Income tax refunds on covenants Sundry income and donations for special appeals Donations, income tax refunds and loans	Unrestricted £ 48,277 5,119 - - 53,396	Unrestricte d funds 2020 £ 51,284 3,310 26,912 31,138 7,406 120,050 2,324 - 58,993 61,317 58,733 58,733 58,733 1,092,447 1,151,180 Restricted £ - - 2,761 1,064 3,825	Restricted funds 2020 £ 9,489 - - - - 9,489 7,041 6,000 - 13,041 (3,552) (3,552) (3,552) (273,703) (277,255) Total 2021 £ 48,277 5,119 2,761 1,064 57,221	Total funds 2020 £ 60,773 3,310 26,912 31,138 7,406
				129,539 9,365 6,000 58,993
				74,358
				55,181
				55,181
				55,181 818,744
				873,925
				Total 2020 £ 45,144 6,140 8,357 1,132
				60,773

Page 11

The Gloucester Muslim Welfare Association Limited

Notes to the Accounts

5 Income from charitable activities

Unrestricte

5 Income from charitable activities		Unrestricte
Marriage fees Funeral income 6 Income from other trading activities Membership fees 7 Income from investments Rents received 8 Other income Sundry income Mortuary room refurbishment donations 9 Expenditure on raising funds Costs of generating voluntary income Donations Investment management costs Rents received	Unrestricted £ - 6,096 6,096	d £ 290 2,087 2,377 Unrestricte d £ 25,875 25,875 Unrestricte d £ 20,535 20,535 Unrestricte d £ 524 2,300 2,824	Total 2021 £ 290 2,087 2,377 Total 2021 £ 25,875 25,875 Total 2021 £ 20,535 20,535 Total 2021 £ 524 2,300 2,824	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

		Restricted £ 2,500 - 2,500	Total 2021 £ 2,500 6,096 8,596	Total 2020 £ 7,041 2,324
				9,365

Page 12

The Gloucester Muslim Welfare Association Limited Notes to the Accounts

10 Expenditure on charitable activities

Governance costs Transfer to Mosque account 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 2020 At 31 October 2021 Net book values At 31 October 2021 At 31 October 2020 14 Debtors Prepayments and accrued income 15 Creditors: amounts falling due within one year Other creditors Deferred income	Restricted £ 15,150 15,150 Unrestricte d £ 31,876 22,182 5,131 498 59,687 2021 31,876 31,876 2021 £ 7,916 7,916 2021 £ 23,290 160,000 183,290	Total 2021 £ 15,150 15,150 Total 2021 £ 31,876 22,182 5,131 498 59,687 £ 700,167 700,167 700,167 700,167	Total 2020 £ 6,000
			6,000
			Total 2020 £ 35,246 18,814 4,433 500
			58,993
			2020 35,246
			35,246
			£ 700,167
			700,167
			700,167
			700,167
			2020 £ 1,458
			1,458
			2020 £ 15,109 -
			15,109

Page 13

The Gloucester Muslim Welfare Association Limited Notes to the Accounts

16 Deferred Income

Movement of the deferred income shown in Creditors: amounts falling due more than one year

				2021		2020
				£		£
	Deferred in current year			150,000		-
	At 31 October			150,000		-
17	Movement in funds
				Incoming
			At 1 November	resources (including other gains/losse	Resources expended	At 31 October 2021
			2020	s)
				£	£	£
	Restricted funds:
	Restricted income funds:
	Special purposes		12,032	2,761	(2,500)	12,293
	Mosque extension fund		(307,382)	1,064	(15,150)	(321,468)
	Islamic School property
	investment fund		18,095	-	-	18,095
	Total		(277,255)	3,825	(17,650)	(291,080)
	Unrestricted funds:
	General funds		929,118	105,007	(65,783)	968,342
	Revaluation Reserves:
	Revaluation fund		222,062	-		222,062
	Total revaluation reserves		222,062	-		222,062

	Total funds		873,925	108,832	(83,433)	899,324
	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

18 Analysis of net assets between funds

Fixed assets Net current assets	Unrestricte d funds £ 700,167 186,864 887,031	Restricted funds £ - 12,293 12,293	Total £ 700,167 199,157
			899,324

Page 14

The Gloucester Muslim Welfare Association Limited Notes to the Accounts

19 Reconciliation of net debt

Reconciliation of net debt
Cash and cash equivalents Net debt	At 1 November 2020 £	Cash flows £	At 31 October 2021 £
	187,409	187,122	374,531
	187,409 187,409	187,122 187,122	374,531
			374,531

20 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 2021

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 donations 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 Transfer to Mosque account	Unrestricte d funds 2021 £ 48,277 5,119 - - 53,396 290 2,087 2,377 25,875 25,875 20,535 20,535 524 2,300 2,824 105,007 - - 6,096 6,096 6,096 - -	Restricted funds 2021 £ - - 2,761 1,064 3,825 - - - - - - - - - - 3,825 2,500 2,500 - - 2,500 15,150 15,150	Total funds 2021 £ 48,277 5,119 2,761 1,064 57,221 290 2,087 2,377 25,875 25,875 20,535 20,535 524 2,300 2,824 108,832 2,500 2,500 6,096 6,096 8,596 15,150 15,150	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

Page 16

The Gloucester Muslim Welfare Association Limited Detailed Statement of Financial Activities

Total of expenditure on charitable

activities Employee costs Salaries/wages Premises costs Rates Light, heat and power Premises repairs and maintenance Other premises costs General administrative costs, including depreciation and amortisation General insurances Stationery and printing Subscriptions Sundry expenses Telephone 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	- 31,876 31,876 484 9,255 6,593 5,850 22,182 2,683 624 150 1,508 166 5,131 498 498 59,687 65,783 - 39,224 39,224 - 39,224 1,151,180 1,190,404	15,150 - - - - - - - - - - - - - - - - 17,650 - (13,825) (13,825) - (13,825) (277,255) (291,080)	15,150 31,876 31,876 484 9,255 6,593 5,850 22,182 2,683 624 150 1,508 166 5,131 498 498 59,687 83,433 - 25,399 25,399 - 25,399 873,925 899,324	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

Page 17