## **CHARITY REGISTERED NUMBER: 263535** **SOUTH LONDON MOSQUE & ISLAMIC CENTRE** **TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021** **BOBAT ARIF & CO. CHARTERED CERTIFIED ACCOUNTANTS UNIT 10A, THE 1929 SHOP MERTON ABBEY MILLS 18 WATERMILL WAY LONDON SW19 2RD** ## **SOUTH LONDON MOSQUE & ISLAMIC CENTRE** ## **LEGAL AND ADMINISTRATIVE INFORMATION** |**Registered Charity Number:**|263535| |---|---| |**Chairman:**|A.R.Karim| |**Trustees:**|N Ali| ||Z Niazi| ||A R Karim| ||M Salimullah| ||M A Ijaz| |**Registered Office:**|8 Mitcham Lane| ||London| ||SW16 6NN| |**Accountants:**|Bobat Arif & Co.| ||Chartered Certified Accountants| ||Unit 10A, The 1929 Shop| ||Merton Abbey Mills| ||18 Watermill Way| ||London| ||SW19 2RD| |**Bankers:**|Barclays Bank Plc| ||NatWest Bank Plc| ## **SOUTH LONDON MOSQUE & ISLAMIC CENTRE** ## **FOR THE YEAR ENDED 31 MARCH 2021** ## **CONTENTS** ||**Page**| |---|---| |Charity - Examiners report|1| |Trustees' report|3| |Balance sheet|6| |Statement of financial activities|7| |Schedule of funds|8| |Notes|9| **INDEPENDENT EXAMINER'S REPORT** ## **TO THE TRUSTEES OF SOUTH LONDON MOSQUE & ISLAMIC CENTRE** ## **FOR THE YEAR ENDED 31 MARCH 2021** I report on the accounts which are set out on pages 6 to 13. ## **Respective responsibilities of the** The trustees are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this period under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. It is my responsibility to: Examine the accounts under section 145 of the 2011 Act; follow the procedures laid down in the general directions given by the Charity Commission (under section 145(5)(b) of the 2011 Act); and state whether particular matters have come to my attention. ## **Basis of independent examiner's report** My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a "true and fair view" and the report is limited to those matters set out in the statement below. ## **Independent examiner's statement** I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or 2. the accounts do not accord with those records; or 3. the accounts 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 accounts to be reached. ........................................ Dated: 20 February 2022 Y.G.M.BOBAT FCCA Bobat Arif & Co. Chartered Certified Accountants Unit 10A, The 1929 Shop Merton Abbey Mills 18 Watermill Way London SW19 2RD Page 2 ## **SOUTH LONDON MOSQUE & ISLAMIC CENTRE** ## **REPORT OF THE TRUSTEES’** ## **FOR THE YEAR ENDED 31 MARCH 2021** The trustees present their report with the financial statements of the charity for the year ended 31 March 2021. The trustees confirm that the financial statements comply with the requirements of the Charities Act 2011, the Trust Deed and the Charities SORP 2005. ## **Structure, Governance and Management** ## Trustees The trustees named on page 1 have served throughout the year. No trustee has any beneficial interest in the Trust and they are all members of the Trust. Trustees are only appointed by the Board of Trustees. ## Governing document The charity is governed by its Trust deed. ## Organisation The trustees meet regularly with the Management Committee to review the day to day duties which have been delegated to the Committee. ## Related parties There are no related parties that require disclosure. Risk policy The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. Objectives and activities The Charitable Trust's objects are to promote the study and practice of the Islamic faith and to advance religious education in accordance with the doctrines and practices of the Islamic faith. The charitable trust's main activities are: > To provide a centre at which members of the public can advance their education in the knowledge of Islam; > To provide educational activities to those of the Islamic faith; > A community centre for the local Muslim community whereby daily prayer facilities are performed, ladies and youth activities are held, funeral and matrimonial facilities are provided, various local community events are held and a Food bank service is also provided for the benefit of all local communities. ## **Achievements and performance** The Trustees are pleased to state that the charitable trust has continued with its objectives and are satisfied with the achievements in view of the global outbreak of Covid 19 during the year. This resulted in the Mosque and the Centre being closed to the worshippers to adhere to the lockdown rules. It remained closed during the busiest times of the year of Ramadaan and the two annual days of Eid celebrations. This in turn impacted significantly in the voluntary donations received and other activities. Fortunately, the regular donations by bank direct debits continued. Due to it’s healthy position and management, the closure had no adverse effect in the charity’s finances These achievements could not have been realised without the generous backing of the donors, as well as the excellent performance of the modestly sized staff team supported by our kind and enthusiastic volunteers, to all of whom we are very grateful. Page 2 ## **SOUTH LONDON MOSQUE & ISLAMIC CENTRE** ## **REPORT OF THE TRUSTEES’** (Continued) ## **FOR THE YEAR ENDED 31 MARCH 2021** ## **Financial review** ## Reserves policy It is the policy of the charity to maintain unrestricted funds, which are the free reserves of the charity, at a level which equates to approximately three months unrestricted expenditure. This provides sufficient funds to cover management and administration and support costs and to respond to any emergency applications which may arise. Unrestricted funds were maintained at this level throughout the year. Freehold land and buildings In the opinion of the directors the market value of land & buildings is £5,150,000. ## **Plans for future periods** ## Financial Review In view of the Covid pandemic and it’s repercussions, the charity managed to maintain it’s balances and also it’s normal standard of good level of quality educational activities to satisfy the needs of the community. We are hopeful to improve now that the Covid impact has eased. ## **Accounting and reporting responsibilities** The trustees are responsible for preparing the Trustees' Annual 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 accounts 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 period. In preparing these financial statements, the trustees are required to: - select suitable accounting policies and apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; - prepare the accounts on a going concern basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provision 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. Approved by the trustees on 20 February 2022 signed on its behalf by: ..................................................... M A Ijaz Trustee Page 5 ## **SOUTH LONDON MOSQUE & ISLAMIC CENTRE** ## **BALANCE SHEET** |**2020**
**Tangible fixed assets**
Tangible assets
**Current assets**
Debtors
Bank Accounts
**Creditors**
Amounts falling due within
one year
**Net current assets**
**Total assets less current liabilities**
**Creditors**
Amounts falling due
after more than one year
**Net assets**
**Capital funds**
Restricted funds
Unrestricted funds
**Total funds**|**AT 31 MARCH 2021**
**Note**
**2021**
**£**
**£**
**£**
**£**
4
2,806,217
2,772,288
5
262,528
273,932
544,839
564,257
**––––––––**
**––––––––**
807,367
838,189
6
8,072
9,986
**––––––––**
**––––––––**
799,295
828,203
**––––––––**
**––––––––**
3,605,512
3,600,491
6
(681,213)
(774,105)
**––––––––**
**––––––––**
£2,924,299
£2,826,386
**––––––––**
**––––––––**
0
5,780
2,924,299
2,820,606
**––––––––**
**––––––––**
£2,924,299
£2,826,386
**––––––––**
**––––––––**| |---|---| Approved by the trustees on 20 February 2022 and signed on its behalf. ................................................... M A Ijaz Trustee The annexed notes form part of these financial statements. Page 6 ## **SOUTH LONDON MOSQUE & ISLAMIC CENTRE** ## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021** |**Incoming resources**
Incoming Resources from
generated funds:
Voluntary income
Activities for generating funds
Investment income
Other incoming resources
**Total incoming resources**
**Resources expended**
Costs of generating funds
Costs of charitable activities
Governance costs
**Total resources expended**
**Net movement in funds**
**Total funds brought forward**
**Total funds carried forward**|**Unrest'd**
**Funds**
**£**
113,082
61,310
201,666
**––––––––**
376,058
3,120
**––––––––**
379,178
**––––––––**
18,750
44,628
212,107
**––––––––**
275,485
**––––––––**
103,693
2,820,606
**––––––––**
2,924,299
**––––––––**|**Rest'd**
**Income**
**Funds**
**£**
1,425
0
0
**––––––––**
1,425
0
**––––––––**
1,425
**––––––––**
7,205
0
0
**––––––––**
7,205
**––––––––**
(5,780)
5,780
**––––––––**
0
**––––––––**|**Total**
**Funds**
**2021**
**£**
114,507
61,310
201,666
**––––––––**
377,483
3,120
**––––––––**
380,603
**––––––––**
25,955
44,628
212,107
**––––––––**
282,690
**––––––––**
97,913
2,826,386
**––––––––**
2,924,299
**––––––––**|**Total**
**Funds**
**2020**
**£**
135,837
68,242
197,521
**––––––––**
401,600
0
**––––––––**
401,600
**––––––––**
32,727
81,365
219,581
**––––––––**
333,673
**––––––––**
67,927
2,758,459
**––––––––**
2,826,386
**––––––––**| |---|---|---|---|---| Details of Incoming resources and resources used are given in the notes to the financial statements. Page 7 ## **SOUTH LONDON MOSQUE & ISLAMIC CENTRE** ## **STATEMENT OF FINANCIAL ACTIVITIES** ## **DETAILED ANALYSIS OF MOVEMENTS IN FUNDS** ## **FOR THE YEAR ENDED 31 MARCH 2021** |||**2021**||**2020**| |---|---|---|---|---| ||**£**|**£**|**£**|**£**| |**General Fund**||||| |Surplus for the period|103,693||66,222|| ||**––––––––**||**––––––––**|| |||103,693||66,222| |**Unrestricted fund**||||| |Opening balance|2,820,606||2,754,384|| ||**––––––––**||**––––––––**|| |||2,820,606||2,754,384| |**Restricted Income Fund**||||| |Opening Balance|5,780||4,075|| |Voluntary Income - Zakat/Sadqa/Fitrana|1,425||31,005|| |Donations - Zakat/Sadqa/Fitrana|(7,205)||(29,300)|| ||**––––––––**||**––––––––**|| |||0||5,780| |||**––––––––**||**––––––––**| |**Total funds at 31 March 2021**||£2,924,299||£2,826,386| |||**––––––––**||**––––––––**| Page 8 **SOUTH LONDON MOSQUE & ISLAMIC CENTRE** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 MARCH 2021** ## 1. **Accounting policies** The accounts have been prepared under the historical cost convention as modified by the inclusion of investments at market value. The accounts have been prepared in accordance with the Statement of Recommended Practice - Accounting and Reporting by Charities (SORP 2005) issued in March 2005, applicable UK Accounting Standards and the Charities Act 1993. The principal accounting policies adopted in the preparation of the accounts are set out below. ## **Incoming resources** All incoming resources are included in the SOFA when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. ## **Resources expended** All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with use of the resources. ## **Tangible fixed assets and depreciation** Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows: Freehold Land and buildings - Trustees have adopted the policy to keep the cost in the balance sheet at historical value and market value is disclosed in the Trustees' Report. Plant and Machinery - 20% per annum on NBV Motor Vehicles - 25% per annum on NBV ## **Fund accounting** General funds are unrestricted funds which are available for use at the discretion of the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund as set out in the notes to the financial statements. Page 9 ## **SOUTH LONDON MOSQUE & ISLAMIC CENTRE** ## **NOTES TO THE FINANCIAL STATEMENTS** (Continued) ## **FOR THE YEAR ENDED 31 MARCH 2021** ## 2. **Staff costs** The average number of persons employed by the company during the period was as follows: ## 3. ## 4. |||**2021**|**2020**| |---|---|---|---| |Administration||1|1| |Teachers||18|20| |Imam||1|1| |||**––**|**––**| |||20|22| |||**––**|**––**| |**Investment Income**|||| |||**2021**|**2020**| |||**£**|**£**| |Rent received||201,666|197,521| |||**–––––––**|**–––––––**| |**Tangible fixed assets**|||| ||**Land**|**Plant**|| ||**and**|**and**|| ||**Buildings**|**Machinery**|**Total**| ||**£**|**£**|**£**| |Cost:|||| |At 1 April 2020|2,766,577|69,712|2,836,289| |Additions – New Funeral Ambulance|0|46,760|46,760| ||**––––––––**|**––––––––**|**––––––––**| |At 31 March 2021|2,766,577|116,472|2,883,049| ||**––––––––**|**––––––––**|**––––––––**| |Depreciation:|||| |At 1 April 2020|0|64,001|64,001| |Charge for the period|0|12,831|12,831| ||**––––––––**|**––––––––**|**––––––––**| |At 31 March 2021|0|76,832|76,832| ||**––––––––**|**––––––––**|**––––––––**| |Net book value:|||| |At 31 March 2021|£2,766,577|£ 39,640|£2,806,217| ||**––––––––**|**––––––––**|**––––––––**| |At 31 March 2020|£2,766,577|£ 5,711|£2,772,288| ||**––––––––**|**––––––––**|**––––––––**| Page 10 ## **SOUTH LONDON MOSQUE & ISLAMIC CENTRE** ## **NOTES TO THE FINANCIAL STATEMENTS** (Continued) ## **FOR THE YEAR ENDED 31 MARCH 2021** ## 5. **Debtors and prepayments** Amounts falling due within one year: |Prepayments and Accrued Income
Staff Loans
Loans
Al Hidayam Masjid Loan


**Creditors**
Amounts falling due within one year:-
Other Taxes & PAYE
Accruals and Deferred Income


Amounts falling due after more than one year:-
Bank Loan (Secured on Freehold Property)
|**2021**
**£**
778
58,750
3,000
200,000
**–––––––**
£262,528
**–––––––**
**2021**
**£**
5,073
2,999
**––––––––**
£ 8,072
**––––––––**
681,213
**––––––––**|**2020**
**£**
12,182
58,750
3,000
200,000
**–––––––**
£273,932
**–––––––**
**2020**
**£**
5,073
4,913
**––––––––**
£ 9,986
**––––––––**
774,105
**––––––––**| |---|---|---| ## 6. **Creditors** Page 11 ## **SOUTH LONDON MOSQUE & ISLAMIC CENTRE** ## **NOTES TO THE FINANCIAL STATEMENTS** (Continued) ## **FOR THE YEAR ENDED 31 MARCH 2021** |7.|**Incoming resources**||||| |---|---|---|---|---|---| ||||**Rest'd**||| |||**Unrest'd**|**Income**|**Total**|**Total**| |||**Funds**|**Funds**|**Funds**|**Funds**| |||**2021**|**2021**|**2021**|**2020**| |||**£**|**£**|**£**|**£**| ||**Voluntary income**||||| ||Donations|15,562|0|15,562|41,208| ||Subscriptions|7,845|0|7,845|5,405| ||Friday Collections|21,813|0|21,813|58,219| ||Funeral Ambulance donations|67,862|0|67,862|0| ||Voluntary Income - Zakat/Sadqa/Fitrana|0|1,425|1,425|31,005| |||**–––––––**|**–––––––**|**–––––––**|**–––––––**| |||113,082|1,425|114,507|135,837| |||**–––––––**|**–––––––**|**–––––––**|**–––––––**| ||**Activities for generating funds**||||| ||Sale of Calenders|778|0|778|1,017| ||Madrassa Fees|49,925|0|49,925|64,005| ||Mortuary Fees|6,635|0|6,635|900| ||Nikah Fees|3,972|0|3,972|2,320| |||**–––––––**|**–––––––**|**–––––––**|**–––––––**| |||61,310|0|61,310|68,242| |||**–––––––**|**–––––––**|**–––––––**|**–––––––**| ||**Investment income**||||| ||Rent received|201,666|0|201,666|197,521| |||**–––––––**|**–––––––**|**–––––––**|**–––––––**| |||201,666|0|201,666|197,521| |||**–––––––**|**–––––––**|**–––––––**|**–––––––**| ||**Other incoming resources**||||| ||Covid Furlough grant|3,120|0|3,120|0| |||**–––––––**|**–––––––**|**–––––––**|**–––––––**| |||3,120|0|3,120|0| |||**–––––––**|**–––––––**|**–––––––**|**–––––––**| Page 12 ## **SOUTH LONDON MOSQUE & ISLAMIC CENTRE** ## **NOTES TO THE FINANCIAL STATEMENTS** (Continued) ## **FOR THE YEAR ENDED 31 MARCH 2021** |8.
**Costs of generating funds**
**2021**

**£**
Hearse costs
1,987
Calenders
675
Funeral costs
3,257
Depreciation
12,831
**––––––––**


9.
**Costs of charitable activities**
**2021**

**£**
Charitable donations
1,500
Rates
1,375
Light & Heat
2,842
Cleaning
4,679
Security
0
Insurance
10,399
Telephone & Internet
616
Post, Print & Stationery
0
Building repairs
20,389
Renewals
0
Bank Charges
1,035
Credit Card Charges
0
Sundry expenses
293
Pest control costs
900
Ramadaan & Hospitality costs
0
Subscriptions
250
Computers
350
Charity Shop/Food Bank
0
**––––––––**

|**2021**
**£**




18,750

**––––––––**

**2021**
**£**

















44,628

**––––––––**
|**2020**
**£**
1,074
925
0
1,428
**––––––––**
3,427
**––––––––**
**2020**
**£**
0
1,725
12,421
10,050
8,020
9,549
702
352
20,277
399
1,951
256
4,584
0
7,160
250
268
3,401
**––––––––**
81,365
**––––––––**| |---|---|---| Page 13 ## **SOUTH LONDON MOSQUE & ISLAMIC CENTRE** ## **NOTES TO THE FINANCIAL STATEMENTS** (Continued) ## **FOR THE YEAR ENDED 31 MARCH 2021** |10.|**Governance costs**|||| |---|---|---|---|---| |||**2021**|**2021**|**2020**| |||**£**|**£**|**£**| ||Staff costs|174,688||179,502| ||Social Security Costs|0||819| ||Accountancy & Report fees|1,500||1,500| ||New Project costs|32,662||36,455| ||Payroll costs|408||408| ||Staff Pension costs|1,009||897| ||Office Administration costs|1,840||0| |||**––––––––**||**––––––––**| ||||212,107|219,581| ||||**––––––––**|**––––––––**| Page 14 SOUTH LONIX)N M UE & ISLAMIC ENTRE LEGAL AND ADMINisfRATIVE RMATION Registered Ch*rfty Number. 263535 Ch*irni*n: mohamm￿ A ljaz Z Niazi A R Karim M Saltmullah MAljaz Regli¢¢r¢d Offlee: 8 Mi*ham Lane London SW16 6NN Ac¢ountants: Bobat Arif & Co. Chartued Certified Accountants Untt IOA. Th¢ 1929 Shop M¢xton AbE¢y Mills 18 Watermill Way Lot)don SW192RD Bank¢r8: Barclays Bank PIC Natwem Bank PIC NDON M UE & ISLAMIC CEiYfRE BALANCE SHEET AT 31 MAR H 2021 Noit 21r21 Tangible fixed assets Tangible assets 2.806217 2.772288 CurTettt *uets D¢btor5 Bank Accounts 262528 544.839 273.932 564257 807J67 838.189 Cr¢ditors Amounts falling due within one year &OT2 9.986 Net eurrent assets 799295 828203 Total assets1¢ss cU￿￿t lknbllltltj 3.605.512 3.6(X),491 Credltor5 Amounts falling due after more than one year (681213) (774.105) Net a&qets q924299 £2,826,386 C*plt•l Restricted fundy Unrestricted funds 5,780 2,820,606 2.924299 Total futhds £2.W24299 £2,826.386 Approved by the truste¢s on 20 Febnw 2022 and Si￿￿1 Im its behalf. MAljaz TnLsl¢e The annexed notes forn) Imrt of these fin¥n¢ial ststemen UE & ISLAMIC CEiYfRE REPORT OF THE TRusfEES' (Continu￿) R THE YEAR ENDED 31 MARCH 2021 FiMDcl#l r¢vlew Reserves y)licy li i5 the poliLy of the ehprity to maintain unreskn¢teAJ W which aT¢ the free r¢5eTves of th¢ charity. ot a level which equates io approximat¢ty three months tsnr¢5thcted expendibjre. This provides suffi¢&eni funds to ￿Ver mAnagement and administsztion supp)rtCOSts and to reS￿￿d toany •nerg￿eY wlicationg which may arise. Unrestrided fijnds were Maintain￿ at this l¢vel theyeaT. Freehold land and E¥Jildings In th¢ opinion of the dIr￿SOrs the mavket value of1gnd & buildiw is £5.150.CKK). Pla•$ for tsture p¢rlods Financi81 Review In view of the Covid pandemic and ti's rer¢rcussion4 the charity managed ￿ maintsin il's balances and also il'5 norn]al swldard of 8(￿ level of quality edu¢ational ￿1VI￿¢S to SO1i5fy the of the ¢omtnunity. We are hopefijl to improve now that the Covid impact has e&sed. Aceountln8 *nd rnportkng respomlbllities with applI￿b]e law and Untted Kin8th)m ALx¥)unting Stanthrds (United Kingdom Generally Accepted Accouniing Prnctice). The law appli¢able to chthities in Engl￿d and Wale5 requir¢5 the tntstees to prepgre a￿OUnts for each fitwicial year which give a true gJKI fair view of the st¥e of affair5 of the ¢harity and of the in¢xHning resour¢e5 and applic8tion of rwurces of the thity fw that ptti(xL In weporin8 these financial statements. the trustees are requir￿ to: select suitsble accounting polici4$ and appty them CA)nsis*trtiy observe the meth(kts and principles in the Charities SORP: make judgemats and estimates that are rea￿thIe and state whether applicable x¢ountin8 Sthndords have been followol subied to any materi8] dep8rtUtt8 disclosed and explwned in the fin8ncial ststements; prepare the ￿ounts on a goin8 knas unless it i5 inaFiw to that the ¢h8rity will continue in owation. The trustees are resp)nsli Ile fty kcq)in8 priw acc{M￿ting records whieh disclose with reasonable accupdcy at any time the financial positionofthe charity a￿1 enablethem io ensure th&tth¢ac£(Autscornply wth theCharitie5 Act 2011. the Charity (Accounts and Rwrts) Regulations 2008 and the provision ofthe tn￿ deed. They ate also responsible for safeguarding th¢ assets of th¢ charity and herKe foTtakin8re45onable step5 forttre pr¢vention and detection of fraud and other irre8ukne& Approved by the truslee5 on 20 Febnwy 2022 SI￿ th its beI￿lf by: MAljaz Page 5 ## **CHARITY REGISTERED NUMBER: 263535** **SOUTH LONDON MOSQUE & ISLAMIC CENTRE** **TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021** **BOBAT ARIF & CO. CHARTERED CERTIFIED ACCOUNTANTS UNIT 10A, THE 1929 SHOP MERTON ABBEY MILLS 18 WATERMILL WAY LONDON SW19 2RD** ## **SOUTH LONDON MOSQUE & ISLAMIC CENTRE** ## **LEGAL AND ADMINISTRATIVE INFORMATION** |**Registered Charity Number:**|263535| |---|---| |**Chairman:**|A.R.Karim| |**Trustees:**|N Ali| ||Z Niazi| ||A R Karim| ||M Salimullah| ||M A Ijaz| |**Registered Office:**|8 Mitcham Lane| ||London| ||SW16 6NN| |**Accountants:**|Bobat Arif & Co.| ||Chartered Certified Accountants| ||Unit 10A, The 1929 Shop| ||Merton Abbey Mills| ||18 Watermill Way| ||London| ||SW19 2RD| |**Bankers:**|Barclays Bank Plc| ||NatWest Bank Plc| ## **SOUTH LONDON MOSQUE & ISLAMIC CENTRE** ## **FOR THE YEAR ENDED 31 MARCH 2021** ## **CONTENTS** ||**Page**| |---|---| |Charity - Examiners report|1| |Trustees' report|3| |Balance sheet|6| |Statement of financial activities|7| |Schedule of funds|8| |Notes|9| **INDEPENDENT EXAMINER'S REPORT** ## **TO THE TRUSTEES OF SOUTH LONDON MOSQUE & ISLAMIC CENTRE** ## **FOR THE YEAR ENDED 31 MARCH 2021** I report on the accounts which are set out on pages 6 to 13. ## **Respective responsibilities of the** The trustees are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this period under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. It is my responsibility to: Examine the accounts under section 145 of the 2011 Act; follow the procedures laid down in the general directions given by the Charity Commission (under section 145(5)(b) of the 2011 Act); and state whether particular matters have come to my attention. ## **Basis of independent examiner's report** My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a "true and fair view" and the report is limited to those matters set out in the statement below. ## **Independent examiner's statement** I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or 2. the accounts do not accord with those records; or 3. the accounts 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 accounts to be reached. ........................................ Dated: 20 February 2022 Y.G.M.BOBAT FCCA Bobat Arif & Co. Chartered Certified Accountants Unit 10A, The 1929 Shop Merton Abbey Mills 18 Watermill Way London SW19 2RD Page 2 ## **SOUTH LONDON MOSQUE & ISLAMIC CENTRE** ## **REPORT OF THE TRUSTEES’** ## **FOR THE YEAR ENDED 31 MARCH 2021** The trustees present their report with the financial statements of the charity for the year ended 31 March 2021. The trustees confirm that the financial statements comply with the requirements of the Charities Act 2011, the Trust Deed and the Charities SORP 2005. ## **Structure, Governance and Management** ## Trustees The trustees named on page 1 have served throughout the year. No trustee has any beneficial interest in the Trust and they are all members of the Trust. Trustees are only appointed by the Board of Trustees. ## Governing document The charity is governed by its Trust deed. ## Organisation The trustees meet regularly with the Management Committee to review the day to day duties which have been delegated to the Committee. ## Related parties There are no related parties that require disclosure. Risk policy The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. Objectives and activities The Charitable Trust's objects are to promote the study and practice of the Islamic faith and to advance religious education in accordance with the doctrines and practices of the Islamic faith. The charitable trust's main activities are: > To provide a centre at which members of the public can advance their education in the knowledge of Islam; > To provide educational activities to those of the Islamic faith; > A community centre for the local Muslim community whereby daily prayer facilities are performed, ladies and youth activities are held, funeral and matrimonial facilities are provided, various local community events are held and a Food bank service is also provided for the benefit of all local communities. ## **Achievements and performance** The Trustees are pleased to state that the charitable trust has continued with its objectives and are satisfied with the achievements in view of the global outbreak of Covid 19 during the year. This resulted in the Mosque and the Centre being closed to the worshippers to adhere to the lockdown rules. It remained closed during the busiest times of the year of Ramadaan and the two annual days of Eid celebrations. This in turn impacted significantly in the voluntary donations received and other activities. Fortunately, the regular donations by bank direct debits continued. Due to it’s healthy position and management, the closure had no adverse effect in the charity’s finances These achievements could not have been realised without the generous backing of the donors, as well as the excellent performance of the modestly sized staff team supported by our kind and enthusiastic volunteers, to all of whom we are very grateful. Page 2 ## **SOUTH LONDON MOSQUE & ISLAMIC CENTRE** ## **REPORT OF THE TRUSTEES’** (Continued) ## **FOR THE YEAR ENDED 31 MARCH 2021** ## **Financial review** ## Reserves policy It is the policy of the charity to maintain unrestricted funds, which are the free reserves of the charity, at a level which equates to approximately three months unrestricted expenditure. This provides sufficient funds to cover management and administration and support costs and to respond to any emergency applications which may arise. Unrestricted funds were maintained at this level throughout the year. Freehold land and buildings In the opinion of the directors the market value of land & buildings is £5,150,000. ## **Plans for future periods** ## Financial Review In view of the Covid pandemic and it’s repercussions, the charity managed to maintain it’s balances and also it’s normal standard of good level of quality educational activities to satisfy the needs of the community. We are hopeful to improve now that the Covid impact has eased. ## **Accounting and reporting responsibilities** The trustees are responsible for preparing the Trustees' Annual 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 accounts 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 period. In preparing these financial statements, the trustees are required to: - select suitable accounting policies and apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; - prepare the accounts on a going concern basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provision 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. Approved by the trustees on 20 February 2022 signed on its behalf by: ..................................................... M A Ijaz Trustee Page 5 ## **SOUTH LONDON MOSQUE & ISLAMIC CENTRE** ## **BALANCE SHEET** |**2020**
**Tangible fixed assets**
Tangible assets
**Current assets**
Debtors
Bank Accounts
**Creditors**
Amounts falling due within
one year
**Net current assets**
**Total assets less current liabilities**
**Creditors**
Amounts falling due
after more than one year
**Net assets**
**Capital funds**
Restricted funds
Unrestricted funds
**Total funds**|**AT 31 MARCH 2021**
**Note**
**2021**
**£**
**£**
**£**
**£**
4
2,806,217
2,772,288
5
262,528
273,932
544,839
564,257
**––––––––**
**––––––––**
807,367
838,189
6
8,072
9,986
**––––––––**
**––––––––**
799,295
828,203
**––––––––**
**––––––––**
3,605,512
3,600,491
6
(681,213)
(774,105)
**––––––––**
**––––––––**
£2,924,299
£2,826,386
**––––––––**
**––––––––**
0
5,780
2,924,299
2,820,606
**––––––––**
**––––––––**
£2,924,299
£2,826,386
**––––––––**
**––––––––**| |---|---| Approved by the trustees on 20 February 2022 and signed on its behalf. ................................................... M A Ijaz Trustee The annexed notes form part of these financial statements. Page 6 ## **SOUTH LONDON MOSQUE & ISLAMIC CENTRE** ## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021** |**Incoming resources**
Incoming Resources from
generated funds:
Voluntary income
Activities for generating funds
Investment income
Other incoming resources
**Total incoming resources**
**Resources expended**
Costs of generating funds
Costs of charitable activities
Governance costs
**Total resources expended**
**Net movement in funds**
**Total funds brought forward**
**Total funds carried forward**|**Unrest'd**
**Funds**
**£**
113,082
61,310
201,666
**––––––––**
376,058
3,120
**––––––––**
379,178
**––––––––**
18,750
44,628
212,107
**––––––––**
275,485
**––––––––**
103,693
2,820,606
**––––––––**
2,924,299
**––––––––**|**Rest'd**
**Income**
**Funds**
**£**
1,425
0
0
**––––––––**
1,425
0
**––––––––**
1,425
**––––––––**
7,205
0
0
**––––––––**
7,205
**––––––––**
(5,780)
5,780
**––––––––**
0
**––––––––**|**Total**
**Funds**
**2021**
**£**
114,507
61,310
201,666
**––––––––**
377,483
3,120
**––––––––**
380,603
**––––––––**
25,955
44,628
212,107
**––––––––**
282,690
**––––––––**
97,913
2,826,386
**––––––––**
2,924,299
**––––––––**|**Total**
**Funds**
**2020**
**£**
135,837
68,242
197,521
**––––––––**
401,600
0
**––––––––**
401,600
**––––––––**
32,727
81,365
219,581
**––––––––**
333,673
**––––––––**
67,927
2,758,459
**––––––––**
2,826,386
**––––––––**| |---|---|---|---|---| Details of Incoming resources and resources used are given in the notes to the financial statements. Page 7 ## **SOUTH LONDON MOSQUE & ISLAMIC CENTRE** ## **STATEMENT OF FINANCIAL ACTIVITIES** ## **DETAILED ANALYSIS OF MOVEMENTS IN FUNDS** ## **FOR THE YEAR ENDED 31 MARCH 2021** |||**2021**||**2020**| |---|---|---|---|---| ||**£**|**£**|**£**|**£**| |**General Fund**||||| |Surplus for the period|103,693||66,222|| ||**––––––––**||**––––––––**|| |||103,693||66,222| |**Unrestricted fund**||||| |Opening balance|2,820,606||2,754,384|| ||**––––––––**||**––––––––**|| |||2,820,606||2,754,384| |**Restricted Income Fund**||||| |Opening Balance|5,780||4,075|| |Voluntary Income - Zakat/Sadqa/Fitrana|1,425||31,005|| |Donations - Zakat/Sadqa/Fitrana|(7,205)||(29,300)|| ||**––––––––**||**––––––––**|| |||0||5,780| |||**––––––––**||**––––––––**| |**Total funds at 31 March 2021**||£2,924,299||£2,826,386| |||**––––––––**||**––––––––**| Page 8 **SOUTH LONDON MOSQUE & ISLAMIC CENTRE** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 MARCH 2021** ## 1. **Accounting policies** The accounts have been prepared under the historical cost convention as modified by the inclusion of investments at market value. The accounts have been prepared in accordance with the Statement of Recommended Practice - Accounting and Reporting by Charities (SORP 2005) issued in March 2005, applicable UK Accounting Standards and the Charities Act 1993. The principal accounting policies adopted in the preparation of the accounts are set out below. ## **Incoming resources** All incoming resources are included in the SOFA when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. ## **Resources expended** All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with use of the resources. ## **Tangible fixed assets and depreciation** Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows: Freehold Land and buildings - Trustees have adopted the policy to keep the cost in the balance sheet at historical value and market value is disclosed in the Trustees' Report. Plant and Machinery - 20% per annum on NBV Motor Vehicles - 25% per annum on NBV ## **Fund accounting** General funds are unrestricted funds which are available for use at the discretion of the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund as set out in the notes to the financial statements. Page 9 ## **SOUTH LONDON MOSQUE & ISLAMIC CENTRE** ## **NOTES TO THE FINANCIAL STATEMENTS** (Continued) ## **FOR THE YEAR ENDED 31 MARCH 2021** ## 2. **Staff costs** The average number of persons employed by the company during the period was as follows: ## 3. ## 4. |||**2021**|**2020**| |---|---|---|---| |Administration||1|1| |Teachers||18|20| |Imam||1|1| |||**––**|**––**| |||20|22| |||**––**|**––**| |**Investment Income**|||| |||**2021**|**2020**| |||**£**|**£**| |Rent received||201,666|197,521| |||**–––––––**|**–––––––**| |**Tangible fixed assets**|||| ||**Land**|**Plant**|| ||**and**|**and**|| ||**Buildings**|**Machinery**|**Total**| ||**£**|**£**|**£**| |Cost:|||| |At 1 April 2020|2,766,577|69,712|2,836,289| |Additions – New Funeral Ambulance|0|46,760|46,760| ||**––––––––**|**––––––––**|**––––––––**| |At 31 March 2021|2,766,577|116,472|2,883,049| ||**––––––––**|**––––––––**|**––––––––**| |Depreciation:|||| |At 1 April 2020|0|64,001|64,001| |Charge for the period|0|12,831|12,831| ||**––––––––**|**––––––––**|**––––––––**| |At 31 March 2021|0|76,832|76,832| ||**––––––––**|**––––––––**|**––––––––**| |Net book value:|||| |At 31 March 2021|£2,766,577|£ 39,640|£2,806,217| ||**––––––––**|**––––––––**|**––––––––**| |At 31 March 2020|£2,766,577|£ 5,711|£2,772,288| ||**––––––––**|**––––––––**|**––––––––**| Page 10 ## **SOUTH LONDON MOSQUE & ISLAMIC CENTRE** ## **NOTES TO THE FINANCIAL STATEMENTS** (Continued) ## **FOR THE YEAR ENDED 31 MARCH 2021** ## 5. **Debtors and prepayments** Amounts falling due within one year: |Prepayments and Accrued Income
Staff Loans
Loans
Al Hidayam Masjid Loan


**Creditors**
Amounts falling due within one year:-
Other Taxes & PAYE
Accruals and Deferred Income


Amounts falling due after more than one year:-
Bank Loan (Secured on Freehold Property)
|**2021**
**£**
778
58,750
3,000
200,000
**–––––––**
£262,528
**–––––––**
**2021**
**£**
5,073
2,999
**––––––––**
£ 8,072
**––––––––**
681,213
**––––––––**|**2020**
**£**
12,182
58,750
3,000
200,000
**–––––––**
£273,932
**–––––––**
**2020**
**£**
5,073
4,913
**––––––––**
£ 9,986
**––––––––**
774,105
**––––––––**| |---|---|---| ## 6. **Creditors** Page 11 ## **SOUTH LONDON MOSQUE & ISLAMIC CENTRE** ## **NOTES TO THE FINANCIAL STATEMENTS** (Continued) ## **FOR THE YEAR ENDED 31 MARCH 2021** |7.|**Incoming resources**||||| |---|---|---|---|---|---| ||||**Rest'd**||| |||**Unrest'd**|**Income**|**Total**|**Total**| |||**Funds**|**Funds**|**Funds**|**Funds**| |||**2021**|**2021**|**2021**|**2020**| |||**£**|**£**|**£**|**£**| ||**Voluntary income**||||| ||Donations|15,562|0|15,562|41,208| ||Subscriptions|7,845|0|7,845|5,405| ||Friday Collections|21,813|0|21,813|58,219| ||Funeral Ambulance donations|67,862|0|67,862|0| ||Voluntary Income - Zakat/Sadqa/Fitrana|0|1,425|1,425|31,005| |||**–––––––**|**–––––––**|**–––––––**|**–––––––**| |||113,082|1,425|114,507|135,837| |||**–––––––**|**–––––––**|**–––––––**|**–––––––**| ||**Activities for generating funds**||||| ||Sale of Calenders|778|0|778|1,017| ||Madrassa Fees|49,925|0|49,925|64,005| ||Mortuary Fees|6,635|0|6,635|900| ||Nikah Fees|3,972|0|3,972|2,320| |||**–––––––**|**–––––––**|**–––––––**|**–––––––**| |||61,310|0|61,310|68,242| |||**–––––––**|**–––––––**|**–––––––**|**–––––––**| ||**Investment income**||||| ||Rent received|201,666|0|201,666|197,521| |||**–––––––**|**–––––––**|**–––––––**|**–––––––**| |||201,666|0|201,666|197,521| |||**–––––––**|**–––––––**|**–––––––**|**–––––––**| ||**Other incoming resources**||||| ||Covid Furlough grant|3,120|0|3,120|0| |||**–––––––**|**–––––––**|**–––––––**|**–––––––**| |||3,120|0|3,120|0| |||**–––––––**|**–––––––**|**–––––––**|**–––––––**| Page 12 ## **SOUTH LONDON MOSQUE & ISLAMIC CENTRE** ## **NOTES TO THE FINANCIAL STATEMENTS** (Continued) ## **FOR THE YEAR ENDED 31 MARCH 2021** |8.
**Costs of generating funds**
**2021**

**£**
Hearse costs
1,987
Calenders
675
Funeral costs
3,257
Depreciation
12,831
**––––––––**


9.
**Costs of charitable activities**
**2021**

**£**
Charitable donations
1,500
Rates
1,375
Light & Heat
2,842
Cleaning
4,679
Security
0
Insurance
10,399
Telephone & Internet
616
Post, Print & Stationery
0
Building repairs
20,389
Renewals
0
Bank Charges
1,035
Credit Card Charges
0
Sundry expenses
293
Pest control costs
900
Ramadaan & Hospitality costs
0
Subscriptions
250
Computers
350
Charity Shop/Food Bank
0
**––––––––**

|**2021**
**£**




18,750

**––––––––**

**2021**
**£**

















44,628

**––––––––**
|**2020**
**£**
1,074
925
0
1,428
**––––––––**
3,427
**––––––––**
**2020**
**£**
0
1,725
12,421
10,050
8,020
9,549
702
352
20,277
399
1,951
256
4,584
0
7,160
250
268
3,401
**––––––––**
81,365
**––––––––**| |---|---|---| Page 13 ## **SOUTH LONDON MOSQUE & ISLAMIC CENTRE** ## **NOTES TO THE FINANCIAL STATEMENTS** (Continued) ## **FOR THE YEAR ENDED 31 MARCH 2021** |10.|**Governance costs**|||| |---|---|---|---|---| |||**2021**|**2021**|**2020**| |||**£**|**£**|**£**| ||Staff costs|174,688||179,502| ||Social Security Costs|0||819| ||Accountancy & Report fees|1,500||1,500| ||New Project costs|32,662||36,455| ||Payroll costs|408||408| ||Staff Pension costs|1,009||897| ||Office Administration costs|1,840||0| |||**––––––––**||**––––––––**| ||||212,107|219,581| ||||**––––––––**|**––––––––**| Page 14