Charity registration # 271538 THE BALHAM MOSQUE Annual Report for the year ended 3 1st March 2022 MIAIDI AND CO STATLrroRY AUDITORS 241 Miicham Road, Tooling, London SR'J7 gJQ Telephone= 02118 767 23110. Fax: 020 8767 9110
THE BALHAM MOSQUE InformatRD 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 NatioTtal Westminster Bank Pl¢ 63 - 65 Piccadilly tAindon WIJOAJ Al Rayan Bank 77-79 Edgware Road tA)ndon Cbarlty Reg Number 271538
THE BALHAM MOSQUE Contents Page Trustees, Annual Report AuditoVs Report Statement of Financial Activities Balance sheet Notes to the accounls 10-14
THE BALHATrI MOSQUE TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31st MARCH 2022 The Trustees present their report together with the financial slatements of the charity for the year ended 31 st March 2022. The Balham Mosque, 47A Balham High Road, london SW12 9AW is registered with the Charilies Cotnmission (Registration Numkr 271538) and conslituted by Deed of TrusL Principal Activities The principal activities and objective of the chartty is ihe advancement of religion by conduct of public worship and the religious instruction of person accordino to the tenets of the religion of Islam. Risk Manthgement The TrLlStees have examined the major strategic, business and operational risks wliich the charity faces and confirm thdl the systems have been established lo enable reoular reports to be produced so that the necessary steps ¢an be taken to lessen these risks. Charity's Structure, Governance gnd Management The charity 15 made up of a iK)ard of Trustees, Management Cornmittee (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 njnning of our Centres. Recrultment and appointment of Trustees The ne Trustees are appointed by the existino trustees. The Charity. Irustees may al an%, time decide lo appoint a new charity trustee, whether in place of a charity trustee who has tired or been removed. Any charity trustee so appointed and who is not one of the fIt charity tn]stees shall be appointed for a terttk of five years by the charity trustees. Such appointment can be renewed the discretion of the exisling trustees at the time. Brief description of charity's achievemenls and perforniance duriDR the period The Charity Trustees have ¢arried out substantial work for the benefit of its members and other members of thc vommunil).. The main purpose of the Charity is to provide prayer facilities and religious educalion to the community- It a]so provides burial seryices and counselling service to the community. Page I
THE BALHAM MOSQUE TRUSTEES. ANNUAL REPORT FOR THE YEAR EIIDED 31st MARCH 2022 Thi8 year like the previous year has not p&ssed wiihout slruggle and it is down to tireless efforts of Trusfres, OtTice Bearers, Committee Members. and volunteers that we can appreciate the continued service of both centres. Before and after Ramadan e held health Check clinics at boih Centres, Balham Mosque and Tooting Islamic Centre to aid the community. We had a comprehensive Ramadan programme during the fwst Ramadan since lockdown with so¢ial distancing. We held multiple ei'ents ii-ith prominent scholars throughout the ycar at both centres. With the help of our Local Council. we anaged to have the fu5t Eidgah during Eid Ul Adha in 10 years, with close to 2000 people present at Tooling Bec Common Park. After Eid -Ul - Adha qurbani meaL was distributed to the local Muslim Community in need. We are continuing to work with local councils (Merton, Lamkth & Wandsworth) to ensure sutTicient provision for burials at cemeieries. We are workTng 1th Citizens Advise Bureau and theN have provided financial advice to support Ihe ¢ommunit)' wilh cost-of_ll1no concerns. We have weekly Sister's Netball classes at Tooting Islamic Centre. 'e are fmalising the reintroduction of youth events. Educated Scouts Programme, Archery & Martial Arts. We are working 1th Local Civic Partners as a partnership, to launch the Mental Health Hub. Tbe 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. ReSee Poliey l. I It is the policy of Balham Mosque & Tooting Islamic Centre to maintain free reseTres at a level which balances our objectives to develop and support services with our need to remain fllwiciall). siable. 1.2 A minimum level of free reserves equating lo al least 4 monihs of unreslricted expenditure is considered sufficient to cover management. adfflinistrdtion and supw)rt Costs and to respond to evnergency needs which arise from time io time. 1.3 In addition, there is also a need to designate certain sums from free reserves for anticipated expenditure in the short to medium terni. 1.4 This would generally be for capital expenditLTre and will be specified in the notes to thc annual accounts. 1.5 It is anticipated that total free reserves. including designated fimds. would be maintained at 8 level of 4 ]nonths of unr¢stricted expenditure. Trnstee's responsibilities in relation fo financial statements Law applicable to the charities in England and Wales requires ihe Trustees lo prepare financial stsiements for each financial year, which give true and fair view of ihe charity s financial activities during the year and of its financial position at the end of the year. In preparing those fllwicial statements, the Irustees are required to.. -select suitable accounting w)licies and then appl) them ¢onsist¢nily- Page 2
THE BALHAM MOSQUE TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31st MARCH 2022 -Mak"e judgements and estimates that aTe re&sonable and prnden¢ -state whether applicable accounting standards aJ)d sthtement of recommended practice have been followed subject to any departu$ disclosed and explained in the financial statements: and -Prepare the financial statements on the goinu wncern basis unless At is inappropriate to presume that the chariry will continue in business. The trustees ar¢ Sponsl le foT keeping financi records which disclose with reasonable accurdcy at any time the financial position of the charity and enable them w ensure that the financial staiements Comply with the provisRons of serneDt of Recommended Praaice (SOR) 'Accounting and Reporting by Charities, issued in March 2005. They are a]so responsible for safe.ouarding the assets of the charity and hence for taking reasonable Strps for the prevention and deiection of fraud and other irregularRties. The charity is administered by an executive maDag¢ment committee comprising: Chairman Vice Chairn]an Secretary Assistant Secretsry Trusfre Rewesentative Acting Treasurer Arshad Daud Naeem Siddiqui Ulnar Valimohamed Nadeem Mian Ayaaz Niazi Farouk Vaiimahomed Approved by the board on ....................... and signed on its behalf by: Mr Farouk Valimahomed TNstee Mr Aniz Jussab Trnstee Date =
INDEPENDENT ALDITORS. REPORT TO THE TRUSTEES OF THE BALHAM MOSQUE FOR THE YEAR ENDED 31st MARCH 2022 Opinion We have audited the fjnancial statements of The Balham Mosque for the year ended 3 1st March 2022, which comprise the statement of finan¢ial activities, the balance sheet, and the related notes, including a summary of signifi¢ant accounting policies.The fllwicial reporting framem'ork that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102.. The Financial Reporting Sthndard appli¢able in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Prdctice). In our opinion the financial statetnents= give a true and fair view of the state ol the charity's afyairs as at 3151 March 2022, and of its incoming resources and application of resources. for the period then ended; have bcen prepared in ac¢ordan¢e with United Kingdom Generdllv Accepted Accounting Practice have been prepared in accordance with the requirerncnts of the Charities Act 2011. Basis for opinion We ¢onducted our audit in accordance wlth International Standards on Auditing (LTK) (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 scction of our r¢p)rt. We are independent of the Charity in accordance with the ethical requirements that are relevaJ)t to our audit of the financial statements in the UK, including the FRC'S Ethical Standard. and ive have fulfilled our other eihical responsibilities in ac¢ordan¢e with these Tequirements. We believe that the audii evidence we have obtained is suifi¢ienl 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 r¢port to you where.. the trustees, usc of the going concern basis of accounltng in the preparation of the financial statemeTrts is not appropriate; or the trusiees have not disclosed in the financial statemcnts anj ideniified material unceriainties il)at ma}, cast significant doubt about the Charity's ability to continue to adopt the going concern basis of accounting for a period of at least e1ve months fTom Ihe de when the financial stalemenls are authorised for issue. Page 4
llDEPE,DENT AUDITORS, REPORT TO THE TRUSTEES OF THE BALHAM MOSQUE FOR THE YEAR EIYDED 31st MARCH 2022 Other inforniatio The trustees are responsible for the other inforniation. The other infomlation comprises the information included in the annual report other than the financial statemenis and our audilovs report thereon. Our opinion on the financial statements does not cover the other inforniation and, except lo the extent othen¥ise explicitly stated in our repoo do noi e.xpress an>. fortn of assurance conclusion thereon. In connection with our audit of the financial statements, our resFKinsibil&ty is to read the other inforniation and. in doing so. consider w'hether the other infonnation is materiall). inconsistent with thc financial statements or our knowledge obtaincd in the audit or otherwise appears lo be materially misstated. If we identify such material inconsistencies or appareni material misstatements. we are required to detemiine whether there is a material misstaiemenl iti thc fanCIal statements or a material m&sstatement of ihe other information. If, based on the work w'e have perfornied, i¥'e conclude that there is a material misstatement of this other iTrformation, lye are required to report that fa¢L We have nothing to report in this regard. Matters which we are required to report by Exception In the light of the knowledge and understanding of the Charity and lis environment obtained in the course of the audit. we have not identified material misstatemenls in the Trustees, Annual RetN)rt. We have nothing lo rewrt in respect of the following matters where the Charities Act 2011 requires us lo report to you if, in oiir opinion: sufficient accounting records have not been kept- or the financial 5tstCEnents are not in agreement with the accounting records and returns" or we have not received all the information and explanations we require for our audiL Responsibilties of the trustees Thc trustces are rcsponsible for the preparalion of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as thev deterniine is necessary to enable the preparalion of financial statements that are free from material misstatemenL whether due to fraud or etTOr. In preparing the financial statements, the tnteeS are reswnsible for assessÈng the Charity's ability lo continue as a going concern, dis¢losin¥ as applicable. matters related to going conccrn and using the going concern basis of accountin(F unless Ihe trustees either intend lo liquidate the Charity or to cease operations, or have no realistic alternative but to do so. Pydge 5
INDEPENDELYf AUDITORS, REPORT TO THE TRUSTEES OF THE BALHAM MOSQUE FOR THE YEAR ENDED 31st MARCH 2022 Our responsibilities for ihe audit of the fatIal statements Our objectives are to obtain re&sonable assurance about whether the financial statements as a whole are free from material misstatcment. whether due to fraud or etror. and to issue an auditols report that includes our opinion. Reasonable assurance is a high level of assurance: but is not a guarantee that an audit conducted in a¢¢ordance ivith ISA5 (UK) will always d¢le¢t a material mi$5tafrmcnt whcn it exists. Misstatetnents ean arise from fraud or error and are considered material if, individually or in the aggregat¢, they ¢ould reasonably be expected to influence th¢ On011C decisions of users taken on the basis of these financial statemenls. A furtheI description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at= [Ww.frc.or8.UklaudIt0TSre$W)sib1]ItieSI- Thi5 description torms part of our auditols reporL Use of our rert This report is made solely to the ChariTh's IteeS, as a body, in accordance with section 144* of the Charities Act 201 l and the regiilations made under section l )4 of ihat Act. Our audit work has been undertaken so that ,¢ might state to the Charitv's trustees tliose matters ive are required to slate to theln in an audiior's report and for no other purpose. To the fullest extent perniitted by law, we do not accept or assume responsibility. io anyone other than ihe Charity's tnteeS as a body. for our audit work, for this report, or for the opinions we have fornicd. Mr M Zaidi (Senior Statutory Auditor) For and on behalf of M.Zaidi & Co Chartered Accountants & Statutory Auditor5 241 Mitcham Road London SW17 9JQ Date.. '3i.-0170I3 Page 6
THE BALHAM MOSQUE ST ATEMENTS OF FINANCIAL AcfiviTIES YFOR THE YEAR ENDED 31 MARCH 2022 2022 Total Funds 2021 Total Funds Restricted Unreslricted Funds Funds otes Incoming Resources General Donations Madrassah Donations Anerlev Orchard Cemetery-Donations Donations received from Ableband Lid Rent re¢eived From Al Risala towards Light, Heat 2nd Insurance Contribution Received from Al-Risalah Calender project receipts Radio transtnitters receipts TIC Project Nikkah Certificate Metnbership Fees Books Funeral Services Gift aid refund Sports & other Events Arabic Class Takmilah CoLrrse New Hcarse Appeal (hher ITtcome Return on Investment 148,296 53,835 148,296 53,835 134.412 20,044 51,977 361,278 374,253 19,676 i 0,000 1.564 700 550 850 2.040 3.693 32,617 47,921 250 361,278 374,253 19,676 I i 0,000 1,564 700 550 850 2,040 3,693 32.617 47,921 250 295,779 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 11,050 11,050 Total before Z&kat, Sadaqah, FitrAna, App¢•l$ & Int¢rcst ZakaL Sadaqah,Fitrana & Fidya Collcction for others & special appeals IrEtcrest (to be donated) 1,168,573 1,168,573 75.392 28.667 748 686,798 44,279 9,193 879 75.392 28,667 748 Total Incoming Resources 104,807 1,168,573 1273J80 741,149 Resourees FJxpended Mosque Staff Salaries Madrassah Staff Salaries Staff pension costs Stsff training Madrassah Parents Evening Calenders PToje¢t cost Rates Insurance Website costs Light & Heat 12 126,633 113,520 3,706 24 16 ,458 814 126,633 13.520 3,706 24 16 1,458 814 138,138 116,502 4,021 446 1.590 33 20,099 1,182 32,445 1,652 51.337 1,652 51.337 Page 7
THE BALHAM MOSQUE STATEMENTS OF FINANCIAL ACTIVITIES YFOR THE YEAR EfiDED 31 MARCH 2022 2022 Total Funds 2021 Total Funds Res¢rieted Unrestrieted Funds Funds Noles Repairs and Maintenance Printin& Postage and Stationery Telephone and intem¢t Books Purchased Dawah Expenses Funeral services expenses Sports/Events Legal and Professional Services Anerlev Orchard Cemetery_Expenses Covid-19 Expenses Accountancy Audit fees Bank Charges Loan Charge Matrix Cleaning Services Membership Fees Depreciation on Improvement of Buildings Amortisation on long leasehold Depreciation on FF & Equipm¢nt Depreciation on motor vehicles 21,216 2,018 4,718 3,971 485 30.983 409 26,178 5,302 162 21,216 2,018 4,718 3.971 485 30,983 409 26,178 5.302 162 3.900 1,500 946 24,743 48.103 1.000 41,758 1,966 13,231 9,784 61,661 2.122 4,611 2,029 275 40,829 839 13.668 43,352 2,291 3,000 1,200 1,500 946 24.743 1,107 26,023 500 41,758 1,966 12,877 9,784 1.000 41.758 1.966 9,784 Total before ZgkaL S2d*qah, Filran&_Ippe#ls & Interest 559,843 559,843 586J61 Govemment Grdnts 37.067 37,067 118,971 kat, Sadaqah & Fitrana Collection for others- Special Appeals pa>inents Interest received donated 78,020 35,)58 2.150 78,020 35,558 2,150 30,479 15,944 Total Resourees Expended 115,728 522,776 638504 513,813 Net Incoming Resources for the year (10,921) 645.797 634,876 227,336 Total funds brought fonvard 42.370 4,155,031 4,197,401 3,970,065 Total funds trarried fonvaThl 31,449 4,8(10,828 4,832277 4,197,401 The ststement of fillallcial activities itteludes all gaills and lossess ill the year. All fillcoming resources and resources expended derive from continuing activities. Page 8
THE BALHAM MOSQUE BalaD¢e sheet as at 31st March 2(122 2022 2021 Notes Fixed assets Tangible assets ).576.254 ),641.579 Deferred revenue expenditu Sharia compliant loan cost Current aets Debtors and prepa)rynents C&sh at bank and in hand 127).788 .J74.5)i 817.3J2 1.128a46 2:64&J21 1.945.678 Current liabilities Creditor5 Sundry Creditors and Accruals 4.590 4.590 21,266 28.298 25.856 Net currenl assets 2.620,02) 1.919.822 Total ets less corrent liabilities 6.196.277 5.561,401 Long-terni liabilitie5 (1.)64.000) {I,J64,000) Net wets 4.8J2277 4,197,401 Aceumulated Funds Unrestricted fifftds Restricted funds 4.800.828 31.449 4,155,031 42070 4.8i2,277 4.197,401 Mr Farouk Valimahomed Trustee Mr Aniz Jussab Trustse Ji 2DI) Pgge 9
THE BALHAM MOSQUE P4otes to the accounts for the l'ear ended 31$¢ March 2022 Accounting policies Accounting convention The financial st2tements have been prepared under historical cost convention, in accordanc¢ with Accounting and Reporting by Charities- Charities Act 2011 and wilh applicable Accounting Standards. Fund Accounting Unrestricted funds are available for use at the discrelion of the TTUStees in furtherance of the general objectives of the charity. Restricted funds are subje¢led to restrictions on their expendiwre imposed by the donor or through the tenns of an appeal. 1.2. llleotning Resou Recognition of incoming Resources These are included in Siatement of Financial Activities (SOFA) when= the charity became entitled to the resources- Ilie trustees are virtually certain they will receive the resources- and the monetary value can be measured with suificient reliability. Incomin2 resources Trith related expenditure Where incoming resources haTre related expenditure (a5 with fund rdising or contract income) the incoming resources and related ex]Kndilurc are reported gross in the SOFA. Grants and Donations Grants and donations are included in the Statement of FiTtancial Activtties on a receivable basis. The balance of income receifv.ed for spccific purposes but not expcnded during the period is shown in the relevani lunds on ihe balance sheel. M4Jere income is received in advance of entitlement of receipL its recognition is deferred and included in creditors as deferred iDcome. Where entitlement occurs before incuffle is receive& the income is accrued. 1.3. Resources Expended All expenditure will be recoonised in the period in which a liabilitN' is in¢urrcd and has been classified under headings that aggregatc all costs relared io that category. Wliere cosls canno( b¢ directly attributed to particular heAdin¥s they have been allocaied on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spenL and depreciation charges allocated on the portion of the asset's use. Other support costs are all(Kated based on the spread of staff Cost of generating funds These are costs incurred in aitrdeting voluntary in¢ome. and those incued in trading activities that raise funds. Page 10
THE BALHAM MOSQUE -Notes to tbt accounts ror the )'ear ended 31st March 2022 1.4. Tan%ible fixed assets and depreciation Depreciation is provided at ra*s calculated to write off the cost or valuation less residual value of each asset over its expected useful life. as follows= Land and buildings Leasehold properties 20/0 Stratght Line Straighi Line over the life of the lease Fixtures fittings & equipment Motor vehicles Islamic sharia compliant108n ¢ost 2511/ty Straight Line l /0 Straight Line 15 years as per loan duration Staff Costs 2022 2021 Wages and Salaries (Including employerfs NIC) 240.153 254,640 Average number of monthly emplo>'ees 28 28 No employee received remuneration of more than £60,000 during the year. Tangible assets Land and Land and Fixlures buildings buildin2$ fittinRs ¥nd Motor freebold leasebold Equipment vehicles Total At 1st April 2021 Additions 2,087.877 1.953.574 127.072 1,414 4,207,657 1,414 At 31 st March 2022 Depreciation At I st April 2021 Charge for the year 2,087,877 1,953,574 128.486 39,134 4,209,071 420.i69 41.7)8 30,346 1.966 105,379 13,231 9.784 9.784 566,078 66,739 At 3 1st March 2022 462,327 118,610 19,568 632,817 At J I si March 2022 At J Isi March 2021 1.62i.5iO 1,921,262 1.667.i08 1,92),228 9,876 21,693 19.566 3,576.254 29,350 3,641,579 Auditors Remuneration 2022 2021 Fees payable for the audil of the finarftcial statements 1,500 1200 1,500 1,200 Page 11
THE BALHAM MOSQUE Notes to the accounts for the year ellded 31st March 2022 Deblors 2022 2021 Receivable frotn Ableband Ltd HMRC Gift Aid Other Debtors Prepayments 1.137,883 88.179 47,421 305 663,297 130,300 14,379 9,356 ,273,788 817.332 Amount receivable from Ableband includes privaie loan of £361,278, which was donaled to The Balham Mo4ue during the year. Currellt liabilities 2022 2021 Tenants, deposit Funeral Expenses-Advance paid Sundry creditors & accruals 4,407 4,590 19,301 4.407 4,590 16.859 28,298 2),856 Long-terni liabilitie5 2022 2021 Qarz-e-Hasna (Interest free loan) Al-Rayan Loan 35.000 1,329,000 35.000 1,329,0(K) 1,364,000 1,364,000 Loan from Al-Rayan Bank The Balham Mosque has obiained a loan of £1.) M from Al-Ryan Bank on the 13th of December 2018, which has a legal charge against I S Laitwix)d Road property". Page 12
THE BALHAM MOSQUE Notes to the accouots for tkne vear ended 31st March 2022 9. Movements in Funds At 1st Incomillg April 2021 Resource5 Outgoing Resources Priorvear AdSustments At 31st March 2022 Unrestricted Funds 4,155,OJ I 1205.640 (559,843) 4,800.828 Restricted funds 42,370 104,807 (115,728) 31.449 Total 4.197.401 I J08,989 (674,113) 4,832,277 Outgoing Resources Prior Year Adjustments At 31st March 2022 Restrieted Funds At 1st Incoming April 2021 RLsources Zakat, Sadaqah,Fitrana & Fid)'a Collection for others & special appeals Interest fuThd P.A system 23.522 75,392 (78.020) 20,894 li,049 28.667 (35,558) 8,158 1,658 2.141 748 (2,150) 256 2,141 104,807 (115,728) 31,449 Page 13
THE BALHAM MOSQUE INotes to the accounts lor the year ended 31st Mgrch 2022 io. Analysis of Net Assets Between Funds Unrestricted Funds Restri¢ted Funds Total Funds At 31st March 2022 Tangible Fixed Assets DetTerred revenue expendilure Current Assels Current Liabilities Long-term liabilities 3,576,254 3,576,254 2,648,321 (28,298) (1,364,000) 2,648,321 (28,298) (1,364,000) 4.832.277 4,832,277 At Jlst March 2021 Tangible Fixed Assets Defferred revenue expenditure Current Assets Current Liabililies Long-lemi liabililies J.641,579 3,641,579 1,945.678 (25,856) (1,364,000) 1,945,678 (25,856) (1,364,000) 4.197.401 4,197,401 11. Related Party Transactions: The related parties of the charity are the common trusiees. There were no wages paid to the trustees during the )'ear. Duriwtg thc year Al-Risalah Education trust paid The Balham Mosque £19,676.4J toii'ards TIK)ting Islamic Centre Expenses. Page 14