CHARITY REGISTRATION NUMBER: 272539
Watford Mosque and Welfare Association Unaudited Financial Statements
31 March 2023
SIDIKIES
Chartered accountants 1 Sun Street Finsbury Square London EC2A 2EP
Watford Mosque and Welfare Association
Financial Statements
Year ended 31 March 2023
| Page | |
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| Trustees' annual report | 1 |
| Independent examiner's report to the trustees | 3 |
| Statement of financial activities | 4 |
| Statement of financial position | 5 |
| Notes to the financial statements | 6 |
Watford Mosque and Welfare Association
Trustees' Annual Report
Year ended 31 March 2023
The trustees present their report and the unaudited financial statements of the charity for the year ended 31 March 2023.
Reference and administrative details
Registered charity name Watford Mosque and Welfare Association Charity registration number 272539 Principal office Cambridge Road Watford Hertfordshire WD1 0GJ The UK The trustees Mr M Yaqub Mr M. Aslam Khan Mr L Bhatti Mr A. R. Choudhrey Independent examiner SIDIKIES 1 Sun Street Finsbury Square London EC2A 2EP
Structure, governance and management
Watford Mosque and Welfare Association is registered with the Charity Commission(Registration Number 272539 )and constituted by the deed of trust. The charity is managed by four trustees who meet at regular intervals to assess the progress. The trustees have assessed the major risks to which the charity is exposed, and are satisfied that the systems are in place to mitigate exposure to the major risks.
Objectives and activities
To provide the place of worship for the multi-ethnic community of Muslims in Watford and the surrounding areas. To propagate and expand the teaching and the message of Islam in total compliance with the law of the land. To seek and build better understanding of other faiths and communities through interfaith and multicolour activities.
Financial review
The charity had net incoming resources in the year of £104,275 (2022: £118,273) resulting in a total funds carried forward of £3,363,012 (2022: £3,258,737).
Asset cover for funds
Note 16 sets out an analysis of the assets attributable to the various funds and these assets are sufficient to meet the charity's obligation on fund by fund basis.
1
Watford Mosque and Welfare Association
Trustees' Annual Report (continued)
Year ended 31 March 2023
The trustees' annual report was approved on 30 January 2024 and signed on behalf of the board of trustees by:
Mr M Yaqub Trustee
2
Watford Mosque and Welfare Association
Independent Examiner's Report to the Trustees of Watford Mosque and Welfare Association
Year ended 31 March 2023
I report to the trustees on my examination of the financial statements of Watford Mosque and Welfare Association ('the charity') for the year ended 31 March 2023.
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 Act’).
I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's statement
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales (ICAEW), which is one of the listed bodies.
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:
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accounting records were not kept in respect of the charity as required by section 130 of the Act; or
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the financial statements do not accord with those records; or
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the financial statements 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.
Amir Siddiqi BSc(Hons),Dip,FCCA,FCA SIDIKIES Independent Examiner
1 Sun Street Finsbury Square London EC2A 2EP
3
Watford Mosque and Welfare Association
Statement of Financial Activities
Year ended 31 March 2023
| 2023 | 2023 | 2022 | ||
|---|---|---|---|---|
| Unrestricted | ||||
| funds | Total funds | Total funds | ||
| Note | £ | £ | £ | |
| Income and endowments | ||||
| Donations and legacies | 4 | 304,459 | 304,459 | 269,571 |
| Investment income | 5 | – | – | 37,215 |
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| Total income | 304,459 | 304,459 | 306,786 | |
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| Expenditure | ||||
| Expenditure on charitable activities | 6,7 | 200,184 | 200,184 | 188,513 |
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| Total expenditure | 200,184 | 200,184 | 188,513 | |
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| Net income and net movement in funds | 104,275 | 104,275 | 118,273 | |
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| Reconciliation of funds | ||||
| Total funds brought forward | 3,258,737 | 3,258,737 | 3,140,464 | |
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| Total funds carried forward | 3,363,012 | 3,363,012 | 3,258,737 | |
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The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 6 to 13 form part of these financial statements.
4
Watford Mosque and Welfare Association
Statement of Financial Position
31 March 2023
| 2023 | 2022 | ||
|---|---|---|---|
| Note | £ | £ | |
| Fixed assets | |||
| Tangible fixed assets | 12 | 1,845,858 | 1,900,051 |
| Investments | 13 | 527,756 | 527,756 |
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| 2,373,614 | 2,427,807 | ||
| Current assets | |||
| Cash at bank and in hand | 990,043 | 831,579 | |
| Creditors: amounts falling due within one year | 14 | 645 | 649 |
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| Net current assets | 989,398 | 830,930 | |
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| Total assets less current liabilities | 3,363,012 | 3,258,737 | |
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| Funds of the charity | |||
| Unrestricted funds | 3,363,012 | 3,258,737 | |
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| Total charity funds | 15 | 3,363,012 |
3,258,737 |
These financial statements were approved by the board of trustees and authorised for issue on 30 January 2024, and are signed on behalf of the board by:
Mr. M Yaqub Trustee
The notes on pages 6 to 13 form part of these financial statements.
5
Watford Mosque and Welfare Association
Notes to the Financial Statements
Year ended 31 March 2023
1. General information
The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is Cambridge Road, Watford, Hertfordshire, WD1 0GJ, The UK.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Charities Act 2011.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
There are no material uncertainties about the charity's ability to continue.
Fund accounting
Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.
Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.
Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.
6
Watford Mosque and Welfare Association
Notes to the Financial Statements (continued)
Year ended 31 March 2023
3. Accounting policies (continued)
Incoming resources
All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
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income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
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legacy income is recognised when receipt is probable and entitlement is established.
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income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.
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income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.
Resources expended
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:
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expenditure on raising funds includes the costs of all fundraising activities, events, noncharitable trading activities, and the sale of donated goods.
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expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
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other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
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Watford Mosque and Welfare Association
Notes to the Financial Statements (continued)
Year ended 31 March 2023
3. Accounting policies (continued)
Tangible assets (continued)
An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold property - 2% straight line Fixtures and fittings - 25% reducing balance
Investments
Unlisted equity investments are initially recorded at cost, and subsequently measured at fair value. If fair value cannot be reliably measured, assets are measured at cost less impairment.
Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cashgenerating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.
Financial instruments
A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.
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Watford Mosque and Welfare Association
Notes to the Financial Statements (continued)
Year ended 31 March 2023
3. Accounting policies (continued)
Financial instruments (continued)
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
Debt instruments are subsequently measured at amortised cost.
Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.
Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.
For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.
Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
4. Donations and legacies
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2023 | Funds | 2022 | |
| £ | £ | £ | £ | |
| Donations | ||||
| Voluntary Income | 291,366 | 291,366 | 235,823 | 235,823 |
| Gifts | ||||
| Gift Aid from HMRC | 13,093 | 13,093 | 12,835 | 12,835 |
| Grants | ||||
| Grants receivable | – | – | 20,913 | 20,913 |
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| 304,459 | 304,459 | 269,571 | 269,571 | |
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Watford Mosque and Welfare Association
Notes to the Financial Statements (continued)
Year ended 31 March 2023
| 5. | Investment income | ||||
|---|---|---|---|---|---|
| Unrestricted | Total Funds | Unrestricted | Total Funds | ||
| Funds | 2023 | Funds | 2022 | ||
| £ | £ | £ | £ | ||
| Income from investment properties | – | – | 37,215 | 37,215 | |
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| 6. | Expenditure on charitable activities | by fund type | |||
| Unrestricted | Total Funds | Unrestricted | Total Funds | ||
| Funds | 2023 | Funds | 2022 | ||
| £ | £ | £ | £ | ||
| Charitable activities | 105,578 | 105,578 | 103,440 | 103,440 | |
| Support costs | 94,606 | 94,606 | 85,073 | 85,073 | |
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| 200,184 | 200,184 | 188,513 | 188,513 | ||
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| 7. | Expenditure on charitable activities | by activity type | |||
| Activities | |||||
| undertaken | Total funds | Total fund | |||
| directly | Support costs | 2023 | 2022 | ||
| £ | £ | £ | £ | ||
| Charitable activities | 105,578 | 94,606 | 200,184 | 188,513 | |
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| 8. | Analysis of support costs | ||||
| Analysis of | |||||
| support costs | Total 2023 | Total 2022 | |||
| £ | £ | £ | |||
| Finance costs | 6,999 | 6,999 | 5,393 | ||
| Rates & water | 2,155 | 2,155 | 1,606 | ||
| Light & heat | 27,180 | 27,180 | 14,707 | ||
| Depreciation | 54,193 | 54,193 | 54,282 | ||
| Funeral expenses | 4,080 | 4,080 | 9,085 | ||
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| 94,607 | 94,607 | 85,073 | |||
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| 9. | Net income | ||||
| Net income is stated after charging/(crediting): | |||||
| 2023 | 2022 | ||||
| £ | £ | ||||
| Depreciation of tangible fixed assets | 54,193 |
54,281 |
10
Watford Mosque and Welfare Association
Notes to the Financial Statements (continued)
Year ended 31 March 2023
10. Staff costs
| The total staff costs and employee benefits for the reporting period are analysed as | The total staff costs and employee benefits for the reporting period are analysed as | follows: |
|---|---|---|
| 2023 | 2022 | |
| £ | £ | |
| Wages and salaries | 82,097 | 71,368 |
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The average head count of employees during the year was Nil (2022: 6).
No employee received employee benefits of more than £60,000 during the year (2022: Nil).
11. Trustee remuneration and expenses
No remuneration or other benefits from employment with the charity were received by the trustees.
12. Tangible fixed assets
| Freehold | Fixtures and | ||
|---|---|---|---|
| property | fittings | Total | |
| £ | £ | £ | |
| Cost | |||
| At 1 April 2022 and 31 March 2023 | 2,772,004 | 15,431 | 2,787,435 |
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| Depreciation | |||
| At 1 April 2022 | 873,025 | 14,359 | 887,384 |
| Charge for the year | 53,925 | 268 | 54,193 |
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| At 31 March 2023 | 926,950 | 14,627 | 941,577 |
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| Carrying amount | |||
| At 31 March 2023 | 1,845,054 | 804 | 1,845,858 |
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| At 31 March 2022 | 1,898,979 | 1,072 | 1,900,051 |
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Watford Mosque and Welfare Association
Notes to the Financial Statements (continued)
Year ended 31 March 2023
13. Investments
| Other | |
|---|---|
| investments | |
| £ | |
| Cost or valuation | |
| At 1 April 2022 | 527,756 |
| Additions | – |
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| At 31 March 2023 | 527,756 |
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| Impairment | |
| At 1 April 2022 and 31 March 2023 | – |
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| Carrying amount | |
| At 31 March 2023 | 527,756 |
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| At 31 March 2022 | 527,756 |
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14. Creditors: amounts falling due within one year
| 2023 | 2022 | |||
|---|---|---|---|---|
| £ | £ | |||
| Social security and other taxes | 645 | 649 | ||
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| Analysis of charitable funds | ||||
| Unrestricted funds | ||||
| At | At | |||
| 1 April 2022 | Income | Expenditure | 31 March 2023 | |
| £ | £ | £ | £ | |
| General funds | 3,258,737 | 305,105 | (200,184)3,363,658 | |
| Unrestricted fund 2 - desc in a/cs | – | (646) | – (646) | |
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| 3,258,737 | 304,459 | (200,184)3,363,012 | ||
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| At | At | |||
| 1 April 2021 | Income | Expenditure | 31 March 2022 | |
| £ | £ | £ | £ | |
| General funds | 3,140,464 | 306,786 | (188,513) | 3,258,737 |
| Unrestricted fund 2 - desc in a/cs | – | – | – | – |
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| 3,140,464 | 306,786 | (188,513) | 3,258,737 | |
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15. Analysis of charitable funds
12
Watford Mosque and Welfare Association
Notes to the Financial Statements (continued)
Year ended 31 March 2023
16. Analysis of net assets between funds
| Unrestricted | Total Funds | |
|---|---|---|
| Funds | 2023 | |
| £ | £ | |
| Tangible fixed assets | 1,845,859 | 1,845,859 |
| Investments | 527,756 | 527,756 |
| Current assets | 990,043 | 990,043 |
| Creditors less than 1 year | (646) | (646) |
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| Net assets | 3,363,012 | 3,363,012 |
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| Unrestricted | Total Funds | |
| Funds | 2022 | |
| £ | £ | |
| Tangible fixed assets | 1,900,051 | 1,900,051 |
| Investments | 527,756 | 527,756 |
| Current assets | 831,579 | 831,579 |
| Creditors less than 1 year | (649) | (649) |
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| Net assets | 3,258,737 | 3,258,737 |
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13