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2021-03-31-accounts

Charity registration # 271538

THE BALHAM MOSQUE

Annual Report

for the year ended 31st March 2021

M.ZAIDI AND CO

STATUTORY AUDITORS

241 Mitcham Road, Tooting, London SW17 9JQ Telephone: 0208 767 2300, Fax: 020 8767 9110

THE BALHAM MOSQUE

Information Trustees Sir Iqbal Sacranie Mr.Haroon Karim Mr.Haroon Daud Mr. Mohammed Ayaz Niazi Mr. Farouk Valimohamed Mr A K Amejee Mr Aniz Jussab Registered Office 47A Balham High Road London SW12 9AW Auditors M.Zaidi and Co Statutory Auditors 241 Mitcham Road London SW17 9JQ Bankers HSBC 117 Balham High Road London SW17 9AJ National Westminster Bank Plc 63 - 65 Piccadilly London W1J OAJ Al Rayan Bank 77-79 Edgware Road London W2 2HZ Charity Reg Number 2 7 1 5 3 8

THE BALHAM MOSQUE

Contents

Page
Trustees' Annual Report 1 - 3
Auditor's Report 4 - 6
Statement of Financial Activities 7 - 9
Balance sheet 10
Notes to the accounts 10 - 15

THE BALHAM MOSQUE

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31st MARCH 2021

The Trustees present their report together with the financial statements of the charity for the year ended 31st March 2021.

The Balham Mosque, 47A Balham High Road, london SW12 9AW is registered with the Charities Commission (Registration Number 271538) and constituted by Deed of Trust.

Principal Activities

The principal activities and objective of the charity is the advancement of religion by conduct of public worship and the religious instruction of person according to the tenets of the religion of Islam.

Risk Management

The Trustees have examined the major strategic, business and operational risks which the charity faces and confirm that the systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks.

Charity's Structure, Governance and Management

The charity is made up of a board of Trustees, Management Committee (or 'Office Bearers') and Sub-committees which oversee the functioning of the charity as well over seeing our full-time salaried staff that are responsible for the day-to-day running of our Centres.

Recruitment and appointment of Trustees

The new Trustees are appointed by the existing trustees. The charity trustees may at any time decide to appoint a new charity trustee, whether in place of a charity trustee who has retired or been removed.

Any charity trustee so appointed and who is not one of the first charity trustees shall be appointed for a term of five years by the charity trustees. Such appointment can be renewed at the discretion of the existing trustees at the time.

Brief description of charity's achievements and performance during the period

The Charity Trustees have carried out substantial work for the benefit of its members and other members of the community.

The main purpose of the Charity is to provide prayer facilities and religious education to the community. It also provides burial services and counselling service to the community.

Page 1

THE BALHAM MOSQUE

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31st MARCH 2021

This year has not passed without a struggle bearing in mind that we have been going through a Covid period for the last two years. The number of deaths in the community has increased substantially which resulted in active work by the burial Committee and other Volunteers who supported us in carrying out the burial and other bereavement services. It comes down to tireless efforts of Trustees, Committee Members, Volunteers, Staff & Donors which is very much appreciated. We would like to thank them all for their continuing service and support in helping our Organisation.

In view of the effect of Covid on the elderly in the community the Charity provided meals and food to number of families in the area. It also worked closely with Tooting Community Kitchen in providing food support to the needy in our borough. It must be noted that the service and was provided to those in need, irrespective of their ethnicity or faith.

We also note with sadness that the mosque facilities including madrassah classes had to be shut down for certain period to be in adherence to Government regulation.

The Trustees regards to the Charity Commission's guidance on public benefit

It is always the aim of the trustees to ensure to ensure the guidance provided by the Charity Commission is taken seriously and implemented.

Reserve Policy

1.2 A minimum level of free reserves equating to at least 4 months of unrestricted expenditure is considered sufficient to cover management, administration and support costs and to respond to emergency needs which arise from time to time.

Trustee's responsibilities in relation to financial statements

Law applicable to the charities in England and Wales requires the Trustees to prepare financial statements for each financial year, which give 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:

Page 2

THE BALHAM MOSQUE

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31st MARCH 2021

The trustees are responsible for keeping financial 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 provisions of Statement of Recommended Practice (SORP) 'Accounting and Reporting by Charities' issued in March 2005. 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.

The charity is administered by an executive management committee comprising:

Chairman : Arshad Daud Vice Chairman : Naeem Siddiqui Secretary : Umar Valimohamed Assistant Secretary : Nadeem Mian Trustee Representative : Ayaaz Niazi Acting Treasurer : Farouk Valimahomed

Approved by the board on ....................... and signed on its behalf by:

.............................. Mr A K Amejee Trustee Date : ......................

..............................

Mr Haroon Daud Trustee

Date : ......................

Page 3

INDEPENDENT AUDITORS' REPORT TO

THE TRUSTEES OF THE BALHAM MOSQUE

FOR THE YEAR ENDED 31st MARCH 2021

Opinion

We have audited the financial statements of The Balham Mosque for the year ended 31st March 2021, which comprise the statement of financial activities, the balance sheet, and the related notes, including a summary of significant accounting policies.The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Page 4

INDEPENDENT AUDITORS' REPORT TO

THE TRUSTEES OF THE BALHAM MOSQUE

FOR THE YEAR ENDED 31st MARCH 2021

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by Exception

In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Annual Report.

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilties of the trustees

The trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the Charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so.

Page 5

INDEPENDENT AUDITORS' REPORT TO

THE TRUSTEES OF THE BALHAM MOSQUE

FOR THE YEAR ENDED 31st MARCH 2021

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: [www.frc.org.uk/auditorsresponsibilities]. This description forms part of our auditor's report.

Use of our report

This report is made solely to the Charity's trustees, as a body, in accordance with section 144* of the Charities Act 2011 and the regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the Charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

....................................................

Mr M Zaidi (Senior Statutory Auditor) For and on behalf of M.Zaidi & Co Chartered Accountants & statutory Auditors 241 Mitcham Road London SW17 9JQ

Date:.....................

Page 6

THE BALHAM MOSQUE

STATEMENTS OF FINANCIAL ACTIVITIES YFOR THE YEAR ENDED 31 MARCH 2021

Notes

Incoming Resources
1.1
General Donations
Madrassah Donations
Annual Family Fun Day
Anerley Orchard Cemetery-Donations
Rent received
From Al Risala towards TIC Expenses
Calender project receipts
Radio transmitters receipts
Madrassah Quran Project
TIC Project
Nikkah Certificate
Membership Fees
Books
Funeral Services
Gift aid refund
Sports & other Events
Arabic Class
Takmilah Course
New Hearse Appeal
Other Income
Return on Investment
Total before Zakat, Sadaqah, Fitrana, Appeals & Interest
Zakat, Sadaqah,Fitrana & Fidya
Collection for others & special appeals
Interest (to be donated)
Total Incoming Resources
Resources Expended
1.2
Advertising
Mosque Staff Salaries
Madrassah Staff Salaries
Staff pension costs
Staff training
Calenders project cost
Radio transmitters cost
Rates
Insurance
Website costs
Restricted
Unrestricted
Funds
Funds
£
£
134,412
20,044
-
51,977
295,779
14,379
1,625
900
-
4,804
381
2,710
1,200
50,337
51,311
630
160
330
43,118
9,990
2,711
-
686,798
44,279
9,193
879
54,351
686,798
-
138,138
116,502
4,021
446
1,590
-
33
20,099
1,182
2021
Total
Funds
£
134,412
20,044
-
51,977
295,779
14,379
1,625
900
-
4,804
381
2,710
1,200
50,337
51,311
630
160
330
43,118
9,990
2,711
686,798
44,279
9,193
879
741,149
-
138,138
116,502
4,021
446
1,590
-
33
20,099
1,182
2020
Total
Funds
£
125,281
73,487
23,658
-
285,414
18,108
2,609
1,200
500
63,007
600
1,760
3,401
33,659
53,119
7,525
2,125
740
-
-
2,553
698,746
65,270
24,594
761
789,371
4,333
149,161
123,149
4,550
1,913
1,800
2,592
1,664
18,935
861

Page 7

THE BALHAM MOSQUE

STATEMENTS OF FINANCIAL ACTIVITIES YFOR THE YEAR ENDED 31 MARCH 2021

Notes
Light & Heat
Repairs and Maintenance
Printing, Postage and Stationery
Telephone and internet
Books Purchased
Quran Project
Dawah Expenses
Funeral services expenses
TIC Project Expenses
Funday Expenditure
Sports/Events
Legal and Professional Services
Anerley Orchard Cemetery-Expenses
Covid-19 Expenses
Accountancy
Audit fees
Bank Charges
Loan Charge Matrix
Tenant Deposit Protection Fee
Cleaning Services
Membership Fees
Amortization of sharia compliant loan cost
Depreciation on Improvement of Buildings
Amortisation on long leasehold
Depreciation on FF & Equipment
Depreciation on motor vehicles
Total before Zakat, Sadaqah, Fitrana, Appeals & Interest
Government Grants
Zakat, Sadaqah & Fitrana
Collection for others- Special Appeals payments
Interest received donated
Total Resources Expended
Net Incoming Resources for the year
Total funds brought forward
Total funds carried forward
2021
2020
Restricted
Unrestricted
Total
Total
Funds
Funds
Funds
Funds
£
£
£
£
32,445
32,445
38,224
61,661
61,661
52,540
2,122
2,122
2,088
4,611
4,611
4,378
2,029
2,029
3,577
-
-
618
275
275
2,402
40,829
40,829
28,271
-
-
10,916
-
-
3,139
839
839
18,124
13,668
13,668
21,952
43,352
43,352
-
2,291
2,291
-
3,000
3,000
3,000
1,200
1,200
1,200
2,013
2,013
1,228
1,107
1,107
53,664
-
-
40
26,023
26,023
36,130
500
500
-
-
-
21,802
41,758
41,758
41,758
1,966
1,966
1,966
12,877
12,877
11,189
9,784
9,784
-
-
586,361
586,361
667,164
118,971
118,971
30,479
30,479
69,000
15,944
15,944
11,220
-
-
-
46,423
467,390
513,813
747,384
7,928
219,408
227,279
41,987
34,442
3,935,680
3,970,122
3,928,136
42,370
4,155,031
4,197,401
3,970,123
2020
Total
Funds
£
38,224
52,540
2,088
4,378
3,577
618
2,402
28,271
10,916
3,139
18,124
21,952
-
-
3,000
1,200
1,228
53,664
40
36,130
-
21,802
41,758
1,966
11,189
-
667,164
69,000
11,220
-
747,384

Page 8

THE BALHAM MOSQUE

STATEMENTS OF FINANCIAL ACTIVITIES YFOR THE YEAR ENDED 31 MARCH 2021

2021 2020
Restricted Unrestricted Total Total
Notes Funds Funds Funds Funds
£ £ £ £

The statement of financial activities includes all gains and lossess in the year. All incoming resources and resources expended derive from continuing activities.

Page 9

THE BALHAM MOSQUE

Balance sheet as at 31st March 2021

2021 2020
Notes £ £ £ £
Fixed assets
Tangible assets 3 3,641,579 3,655,262
Deferred revenue expenditure
Sharia compliant loan cost - -
Current assets
Debtors and prepayments 5 817,332 831,258
Cash at bank and in hand 1,128,346 908,737
1,945,678 1,739,995
Current liabilities 6
Creditors 4,590 4,670
Sundry Creditors and Accruals 21,266 16,465
25,856 21,135
Net current assets 1,919,822 1,718,860
Total assets less current
liabilities 5,561,401 5,374,122
Long-term liabilities 7 (1,364,000 ) (1,404,000 )
Net assets 4,197,401 3,970,122
Accumulated Funds 10
Unrestricted funds 4,155,031 3,935,680
Restricted funds 42,370 34,442
4,197,401 3,970,122

............................ ............................. Mr A K Amejee Mr. Haroon Daud Trustee Trustee Date: ................... Date: ...................

Page 10

THE BALHAM MOSQUE Notes to the accounts

for the year ended 31st March 2021

1. Accounting policies

1.1. Accounting convention

The financial statements have been prepared under historical cost convention, in accordance with Accounting and Reporting by Charities - Charities Act 2011 and with applicable Accounting Standards.

Fund Accounting

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity.

Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal.

1.2. Incoming Resources

Recognition of Incoming Resources

These are included in Statement of Financial Activities (SoFA) when:

Incoming resources with related expenditure

Where incoming resources have related expenditure (as with fund raising or contract income) the incoming resources and related expenditure are reported gross in the SoFA.

Grants and Donations

Grants and donations are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

1.3. Resources Expended

All expenditure will be recognised in the period in which a liability is incurred and has been classified under headings that aggregate all costs related to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Other support costs are allocated based on the spread of staff

Cost of generating funds

These are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Page 11

THE BALHAM MOSQUE Notes to the accounts

for the year ended 31st March 2021

1.4. Tangible fixed assets and depreciation

Depreciation is provided at rates calculated to write off the cost or valuation less residual value of each asset over its expected useful life, as follows:

2. Staff Costs

Staff Costs
Wages and Salaries (Including employer's NIC)
Average number of monthly employees
2021
£
254,640
28
2020
£
281,332
28

No employee received remuneration of more than £60,000 during the year.

3. Tangible assets Land and Land and Land and Fixtures Fixtures
buildings **buildings ** fittings and Motor
freehold leasehold Equipment vehicles Total
£ £ £ £ £
Cost
At 1st April 2020 2,087,877 1,953,574 113,504 - 4,154,955
Additions - 13,568 39,134 52,702
At 31st March 2021 2,087,877 1,953,574 127,072 39,134 4,207,657
Depreciation
At 1st April 2020 378,811 28,380 92,502 9,784 509,477
Charge for the year 41,758 1,966 12,877 - 56,601
At 31st March 2021 420,569 30,346 105,379 9,784 566,078
Net book values
At 31st March 2021 1,667,308 1,923,228 21,692 29,350 3,641,578
At 31st March 2020 1,709,066 1,925,194 21,002 (9,784 ) 3,655,262

Page 12

THE BALHAM MOSQUE

Notes to the accounts

for the year ended 31st March 2021

4. Auditors Remuneration 2021 2020
£ £
Fees payable for the audit of the financial statements 1,200 1,200
1,200 1,200
5. Debtors 2021 2020
£ £
Receivable from Ableband Ltd 663,297 639,661
HMRC Gift Aid 130,300 173,202
Other Debtors 14,379 18,108
Prepayments 9,356 287
817,332 831,258
6. Current liabilities 2021 2020
£ £
Tenants' deposit 4,407 4,407
Funeral Expenses-Advance paid 4,590 4,670
Sundry creditors & accruals 16,859 12,058
25,856 21,135
7. Long-term liabilities 2021 2020
£ £
Qarz-e-Hasna (Interest free loan) 35,000 75,000
Al-Rayan Loan 1,329,000 1,329,000
------------- -----------
1,364,000 1,404,000

Page 13

THE BALHAM MOSQUE Notes to the accounts

for the year ended 31st March 2021

8. Banks securities and facilities:

National Westminster Bank PLC facilities:

ABT Sharia Finance Loan satisfied fully on the 04/05/2020.

Securities:

The Sharia compliant loan is secured over the Charity's asset, "Orchard Lodge Sports Ground, William Booth Road, Penge, Bromley" as 1st legal charge.

9. Loan from Al-Rayan Bank

The Balham Mosque has obtained a loan of £1.3 M from Al-Ryan Bank on the 13th of December 2018, which has a legal charge against 15 Laitwood Road property.

**10. ** Movements in Funds
At 1st
April 2020
Incoming
Resources
Outgoing
Resources
Prior Year
Adjustments
At 31st
March 2021
£
£
£
£
£
Unrestricted Funds
3,935,680
805,769
)
(586,418
-
4,155,031
Restricted Funds
34,442
54,351
)
(46,423
-
42,370
Total
3,970,122
860,120
)
(632,841
-
4,197,401
Restricted Funds
At 1st
April 2020
Incoming
Resources
Outgoing
Resources
Prior Year
Adjustments
At 31st
March 2021
£
£
£
£
£
Zakat, Sadaqah,Fitrana &
Fidya
9,722
44,279
)
(30,479
-
23,522
Collection for others & special
appeals
21,800
9,193
)
(15,944
-
15,049
Interest fund
779
879
-
-
1,658
P.A system
2,141
-
-
-
2,141
34,442
54,351
)
(46,423
-
42,370
Movements in Funds
At 1st
April 2020
Incoming
Resources
Outgoing
Resources
Prior Year
Adjustments
At 31st
March 2021
£
£
£
£
£
Unrestricted Funds
3,935,680
805,769
)
(586,418
-
4,155,031
Restricted Funds
34,442
54,351
)
(46,423
-
42,370
Total
3,970,122
860,120
)
(632,841
-
4,197,401
Restricted Funds
At 1st
April 2020
Incoming
Resources
Outgoing
Resources
Prior Year
Adjustments
At 31st
March 2021
£
£
£
£
£
Zakat, Sadaqah,Fitrana &
Fidya
9,722
44,279
)
(30,479
-
23,522
Collection for others & special
appeals
21,800
9,193
)
(15,944
-
15,049
Interest fund
779
879
-
-
1,658
P.A system
2,141
-
-
-
2,141
34,442
54,351
)
(46,423
-
42,370
42,370

Page 14

THE BALHAM MOSQUE

Notes to the accounts

for the year ended 31st March 2021

11. Analysis of Net Assets Between Funds

Analysis of Net Assets Between Funds
Unrestricted Restricted Total
Funds Funds Funds
At 31st March 2021 £ £ £
Tangible Fixed Assets 3,641,579 - 3,641,579
Defferred revenue expenditure - - -
Current Assets 1,945,678 - 1,945,678
Current Liabilities (25,856 ) - (25,856 )
Long-term liabilities (1,364,000 ) - (1,364,000 )
4,197,401 - 4,197,401
At 31st March 2020 £ £ £
Tangible Fixed Assets 3,655,262 - 3,655,262
Defferred revenue expenditure - - -
Current Assets 1,739,995 1,739,995
Current Liabilities (21,135 ) - (21,135 )
Long-term liabilities (1,404,000 ) - (1,404,000 )
3,970,122 3,970,122

12. Related Party Transactions:

The related parties of the charity are the common trustees.

There were no wages paid to the trustees during the year. During the year Al-Risalah Education trust paid The Balham Mosque £14,379.47 towards Tooting Islamic Centre Expenses.

Page 15