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2021-01-31-accounts

Charity Registration No. 268524

CENTRAL JAMIA MASJID SOUTHALL

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

CENTRAL JAMIA MASJID SOUTHALL

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr Imran Choudhry
Mr Mohamed Naaz Gara
Mr Mohammad Wahid
Mr Nasir Qureshi
Mr Bilal Khan
Mr Muhammad Saleem
Charity number 268524
Principal address Montague Way
Southall
Middlesex
UB2 5PA
Independent examiner Reddy Siddiqui LLP
183-189 The Vale
Acton
London
W3 7RW

CENTRAL JAMIA MASJID SOUTHALL

CONTENTS

Page
Trustrees' report 1 - 2
Statement of Trustrees' responsibilities 3
Independent examiner's report 4
Statement of financial activities 5
Balance sheet 6
Notes to the financial statements 7 - 13

CENTRAL JAMIA MASJID SOUTHALL

TRUSTREES' REPORT

FOR THE YEAR ENDED 31 JANUARY 2021

The Trustees present their report and financial statements for the year ended 31 January 2021.

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 Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

The Masjid was closed most of the time due to covid this year.

As part of the Islamic faith, one of the pillars is to give charity in the way of God. The charity has helped a number of organisations and Masjids in around the UK. One key Masjid, CJM has helped is the establishment of Hounslow Muslim Centre, so that our neighbouring communities also get a place of worship.

Over the years CJM has provided educational programmes to schools and interfaith communities, we continue on our road map to enhance these services so that we can build a relationship with our wider community so that they can also understand that Islam is a religion of Peace and all are welcome. These sessions are very fruitful as there is an opportunity to ask questions, where we have a panel of scholars available to answers these.

One of the key areas of focus has been the youth, where the charity would like to engage them in more activities. The charity in collaboration with other organisations, have been able to setups swimming sessions, football, educational programmes and talks, etc.

Furthermore, the Charity has also been involved to provide advice and help on legal matters by the Solicitor. In addition, the Charity also provides the community help in gaining the attestation of Passport, Photos and travel documents

Financial review

The Treasurer has had the opportunity to review all of our energy suppliers and renegotiate our terms. This also includes our telephone and internet contracts as well. We have made considerable cost savings by going down this path.

Providing card payment terminals has been really successful as the younger generation have been able to use this service to contribute to charity. This has also contributed to our bottom line and has made our position more positive. Sufficient funds are available to permit the Charity to continue in operation

The Trust Deed authorises the trustees to make and hold investments using the general funds of the charity, and such investment are held in the shape of investment property.

It is the policy of the charity to maintain unrestricted funds at a level which equate to approximately 12 months unrestricted expenditure. This provides sufficient funds to cover management and administration and support costs. Unrestricted funds are maintained at least this level throughout the year

It is the policy of the charity to maintain unrestricted funds at a level which equate to approximately 12 months unrestricted expenditure. This provides sufficient funds to cover management and administration and support costs. With the covid our income dropped but we are still confident that funds will be maintained at the level soon

The trustees actively review the major risk the charity faces on a regular basis and believe that maintaining reserves at current levels, combined with an annual review of the controls over key financial systems, will provide sufficient resources in the event of adverse conditions. The trustees have also examined other operational and business risk faced by the Charity and confirms that they have established systems to mitigate the significant risks.

CENTRAL JAMIA MASJID SOUTHALL

TRUSTREES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021

CJM has been actively involved in preparing for the upgrade and renovation of the males’ side Toilet facilities. Thinking about the needs for the future and the increase in population, adaptations have been made to reflect this as well. Good quality and durable commercial products will be used for sustainability and a fresh new clean look and feel.

Phase two of the project will look at increasing the floor place by the way of an extension and is currently being discussed with the architect.

Structure, governance and management

The Trustees who served during the year and up to the date of signature of the financial statements were:

Mr Safwan Khan

(Resigned 22 April 2021)

Mr Imran Choudhry Mr Mohamed Naaz Gara Mr Mohammad Wahid Mr Nasir Qureshi Mr Bilal Khan Mr Muhammad Saleem

Appointment of trustees is governed by the charity’s constitution rules. The Board of Trustees is authorised to appoint new trustees to fill vacancies arising through resignation or death of an existing trustee.

The Trustrees' r eport was approved by the Board of Trustees.

Mr Imran Choudhry

Trustee Dated: 3 September 2021

Mr Mohamed Naaz Gara Trustee Dated:3 September 2021

CENTRAL JAMIA MASJID SOUTHALL

STATEMENT OF TRUSTREES' RESPONSIBILITIES FOR THE YEAR ENDED 31 JANUARY 2021

Law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the charity’s financial activities during the year and of its financial position at the end of the year in preparing those financial statements, the trustees are required to:

The trustees are responsible for keeping accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 1993. 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.

CENTRAL JAMIA MASJID SOUTHALL

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF CENTRAL JAMIA MASJID SOUTHALL

I report to the Trustees on my examination of the financial statements of Central Jamia Masjid Southall (the charity) for the year ended 31 January 2021.

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:

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.

Reddy Siddiqui LLP

183-189 The Vale Acton London W3 7RW

Dated: 3 September 2021

CENTRAL JAMIA MASJID SOUTHALL

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JANUARY 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income from:
Donations and legacies
2
166,663
17,338
Investments
3
23,467
-
Total income
190,130
17,338
Expenditure on:
Charitable activities
4
248,026
19,554
Net expenditure for the year/
Net movement in funds
(57,896)
(2,216)
Fund balances at 1
February 2020
3,147,847
16,626
Fund balances at 31
January 2021
3,089,951
14,410		 TotalUnrestricted
funds
2021
2020
£
£
184,001
295,347
23,467
35,756
207,468
331,103
267,580
372,517
(60,112)
(41,414)
3,164,473
3,189,261
3,104,361
3,147,847		 Restricted
funds
2020
£
95,209
-
95,209
109,408
(14,199)
30,825
16,626		 Total
2020
£
390,556
35,756
426,312
481,925
(55,613)
3,220,086
3,164,473

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

CENTRAL JAMIA MASJID SOUTHALL

BALANCE SHEET

AS AT 31 JANUARY 2021

Notes
Fixed assets
Tangible assets
8
Investment properties
9
Current assets
Debtors
Cash at bank and in hand
Creditors: amounts falling due within
one year
10
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
Unrestricted funds		 2021
£
£
1,969,868
750,000
2,719,868
250,000
137,656
387,656
(3,163)
384,493
3,104,361
14,410
3,089,951
3,104,361		 2020
£
£
1,881,703
750,000
2,631,703
300,000
249,866
549,866
(17,096)
532,770
3,164,473
16,626
3,147,847
3,164,473

The financial statements were approved by the Trustees on 3 September 2021

Mr Imran Choudhry Mr Mohamed Naaz Gara Trustee Trustee

CENTRAL JAMIA MASJID SOUTHALL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021

1 Accounting policies

Charity information

Central Jamia Masjid Southall is an unincorporated association.

1.1 Accounting convention

The financial statements have been prepared in accordance 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)". 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 applying FRS 102 Update Bulletin 1 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 a mounts 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 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.

CENTRAL JAMIA MASJID SOUTHALL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021

1 Accounting policies

(Continued)

1.5 Expenditure

Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both the direct pay and non-pay costs and support costs relating to those activities.

Governance costs

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity, and include its audit fees and costs linked to the strategic management of the charity including trustee expenses.

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 Building is depreciated at 2% per annum. Freehold land is not depreciated Fixtures and fittings 20% reducing balance Motor vehicles 15% reducing balance

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 net income/(expenditure) for the year.

1.7 Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

1.8 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 ) .

1.9 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.

CENTRAL JAMIA MASJID SOUTHALL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021

1 Accounting policies

(Continued)

1.10 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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.

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 p aymen ts 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.

1.11 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.

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

CENTRAL JAMIA MASJID SOUTHALL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021

2 Donations and legacies

Unrestricted
Restricted
funds
funds
2021
2021
£
£
Donations and gifts
76,136
17,338
Legacies receivable
41,898
-
HMRC JRS Grant
22,369
-
Madrassa
26,260
-
166,663
17,338
Donations and gifts
General donation
76,136
17,338
76,136
17,338
Investments
Rental income
Interest receivable		 TotalUnrestricted
Restricted
Total
funds
funds
2021
2020
2020
2020
£
£
£
£
93,474
140,114
95,209
235,323
41,898
44,188
-
44,188
22,369
-
-
-
26,260
111,045
-
111,045
184,001
295,347
95,209
390,556
93,474
140,114
95,209
235,323
93,474
140,114
95,209
235,323
UnrestrictedUnrestricted
funds
funds
2021
2020
£
£
23,464
35,753
3
3
23,467
35,756

3 Investments

CENTRAL JAMIA MASJID SOUTHALL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021

4 Charitable activities

Staff costs
Depreciation and impairment
Sadaqah
Sundry expenses
Ramadhan expenses
Investment property expenses
Funeral and Madrasa
Share of support costs (see note 5)
Share of governance costs (see note 5)
Analysis by fund
Unrestricted funds
Restricted funds
For the year ended 31 January 2020
Unrestricted funds
Restricted funds
Support costs
Support
costs
Governance
costs
£
£
Masjid running expenses
52,617
-
Accountancy
-
780
Legal and professional
-
350
52,617
1,130
Analysed between
Charitable activities
52,617
1,130		 2021
£
52,617
780
350
53,747
53,747		 2021
£
58,284
34,646
19,554
1,636
3,764
17,243
78,706
213,833
52,617
1,130
267,580
248,026
19,554
267,580
372,517
109,408
481,925
Support
costs
Governance
costs
£
£
86,099
-
-
780
-
6,224
86,099
7,004
86,099
7,004		 2020
£
61,301
36,153
109,408
3,064
10,245
15,600
153,051
388,822
86,099
7,004
481,925
372,517
109,408
481,925
2020
£
86,099
780
6,224
93,103
93,103

5 Support costs

Governance costs includes payments to the accountants of £ 780 (2020- £780) for accountancy fees.

CENTRAL JAMIA MASJID SOUTHALL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021

6 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or payment of expenses during the year

7 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs		 2021
Number
3
2021
£
56,153
1,013
1,118
58,284		 2020
Number
3
2020
£
58,400
1,506
1,395
61,301

8 Tangible fixed assets

Freehold land
and buildings
Fixtures and
fittings
Motor vehicles
£
£
£
Cost
At 1 February 2020
2,371,086
108,399
12,565
Additions
122,811
-
-
At 31 January 2021
2,493,897
108,399
12,565
Depreciation and impairment
At 1 February 2020
521,253
80,153
8,941
Depreciation charged in the year
28,453
5,649
544
At 31 January 2021
549,706
85,802
9,485
Carrying amount
At 31 January 2021
1,944,191
22,597
3,080
At 31 January 2020
1,849,833
28,246
3,624		 Total
£
2,492,050
122,811
2,614,861
610,347
34,646
644,993
1,969,868
1,881,703

CENTRAL JAMIA MASJID SOUTHALL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021

9 Investment property

Fair value
At 1 February 2020 and 31 January 2021
Freehold
Creditors: amounts falling due within one year
Other taxation and social security
Other creditors
Accruals and deferred income
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2021
2021
£
£
Fund balances at 31
January 2021 are
represented by:
Tangible assets
1,969,868
-
Investment properties
750,000
-
Current assets/
(liabilities)
380,959
3,534
3,100,827
3,534		 TotalUnrestricted
funds
2021
2020
£
£
1,969,868
1,881,703
750,000
750,000
384,493
516,834
3,104,361
3,148,537		 2021
£
750,000
2021
£
382
1
2,780
3,163
Restricted
funds
2020
£
-
-
15,936
15,936		 2021
£
750,000
2020
£
750,000
2020
£
1,027
289
15,780
17,096
Total
2020
£
1,881,703
750,000
532,770
3,164,473

10 Creditors: amounts falling due within one year

11 Analysis of net assets between funds

12 Related party transactions

There were no disclosable related party transactions during the year (2020 - none).