DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8
**Charity Registration No. 273130**
# **THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **CONSOLIDATED FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2021**
DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8
## **THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|Mr S Ebrahim||
|---|---|---|
||Mr A Walji||
||Mr A Salehi||
||Mr N Virji||
|**Charity number**|273130||
|**Principal address**|2-8 Burton Street||
||Peterborough||
||Cambridgeshire||
||PE1 5HD||
|**Auditor**|Deitch Cooper LLP||
||2nd Floor||
||Congress House||
||Lyon Road||
||Harrow||
||Middlesex||
||HA1 2EN||
|**Bankers**|Barclays Bank PLC||
||114 High Street||
||Old Fletton||
||Peterborough||
||PE2 8DP||
|**Solicitors**|Hunt & Coombs LLP||
||35 Thorpe Road||
||Peterborough||
||Cambridgeshire||
||PE3 6AG||
|**Office bearers**|Rizwan Rahemtulla|President|
||Abbas Manji|Vice president|
||Mohamed Iqbal Manji|Secretary|
||Ramzan Walji|Treasurer|
||Imtiazali Bhimani|Assistant treasurer|
|**Proposed elected members**|||
|**Management committee**|Salim Rehamtullah|Immediate past president|
||Maisam Husseinaly Damani|Education|
||Shokat Bhalwani|HVC/Kitchen|
||Dr Mohammed Othman|Medical|
||Sibtain Damji|Shia sports|
||Abdul Hirji|Welfare|
||Sarfaraz Mavani|Youth & English lecture|
||Zahra Ratansi|Projects co-ordinator|
|**Nominated - Management**|||
|**committee**|Mohammed Jaffer Jagani|Maintenance|
||Abisali Ebrahim|Madrasah Liaison|
||Hussein Datoo|IT/Communications|
||Mullah Mohammed Kassamali|Tabligh|
DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8
## **THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 5|
|Independent auditor's report|6 - 8|
|Consolidated statement of financial activities|9|
|Consolidated statement of financial position|
10|
|Charity statement of financial position|11|
|Consolidated statement of cash flows|12|
|Notes to the financial statements|13 - 28|
DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8
## **THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **TRUSTEES' REPORT**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
The Trustees present their report and the consolidated financial statements for the year ended 31 March 2021. The legal and administrative information page forms a part of this report.
## **Objectives and activities for the public benefit**
The Trustees have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Commission.
The principal objective of the charity is to advance the Islamic Religion in accordance with the Shia Ithna-Asheri Jafferi faith, by all or any of the following means:
- a) Propagate and promote the religious, social, educational and humanitarian teachings of the Shia IthnaAsheri Jafferi faith as per the rulings of the Marja, recognised by our community at large.
- b) To buy, rent, build and maintain centres, mosques and such other infrastructure as may be necessary from time to time for the furtherance of the Objects of The Community.
- c) To facilitate, maintain and develop the worship and practice of the Shia Ithna-Asheri Jafferi faith.
- d) To raise funds and invite and receive contributions from any person(s), organisation(s), or institution(s) whatsoever by way of subscription, donations or otherwise, provided that The Community shall not undertake any permanent trading activities in raising funds for its charitable objects.
- e) To relieve poverty within and outside The Community.
- f) To educate members of The Community in both secular and religious fields.
- g) To promote health and wellbeing of The Community.
- h) To work in co-operation with other Shia Ithna-Asheri Muslim Communities and other charitable organisations.
- i) To educate and further understand Khoja heritage, history, culture and its principles in order to pass such understanding down to successive generations.
- j) Promoting knowledge and mutual understanding between the Khoja Shia Ithna-Asheri Community and different racial and cultural groups.
- k) To handle and manage at its own discretion, but in accordance with English Law, such charitable trusts of Members, that has been handed over to The Community for their management.
- l) To perform marriage ceremonies and burial rites in accordance with the Shia Ithna-Ashei Jafferi faith.
- m) To do all such other things as shall further the above mentioned objects.
The charity focuses primarily on its religious activities but is supported in its objectives by its fellow group companies.
- The Muslim Khoja Shia Ithna-Asheri Community of Peterborough Trust Corporation – This is an investment holding company and owns most of the investment properties held by the group.
- 313 Project Ltd - The company's objective is to complete the Al-Qaeem project and any profits earned by the company will be donated to the charity.
- 313 Trust Corporation Ltd – This is an investment holding company and owns an investment property held by the group.
- 1 -
DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8
## **THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **TRUSTEES' REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Achievements and performance**
The Trustees have considered the Charity Commission's general guidance on public benefit and in particular its supplementary guidance on the advancement of religion for the benefit of the public.
The charity provides facilities for observing the important events in the Shia calendar.
- a) There are approximately 125 days of importance in the calendar which are marked by observations with special functions in the Mosque. These include the fasting month of Mahe Ramadhaan and the mourning month of Mahe Muharram.
- b) Daily prayer facilities (congregation and individual) are held three times a day throughout the year.
- c) Facilities are provided for Juma prayers every Friday where participants include the wider Muslim community.
- d) Welfare support for families in poverty (with the assistance of the Council of European Jamaats and The World Federation of Khoja Shia Ithna-Asheri Muslim Communities).
- e) Facilitating, hosting and organising weddings and funerals.
- f) Hosting Youth programmes incorporating sports, debates, quizzes, etc.
- g) Providing education facilities including Husaini Madrasah and Husaini Pre-School.
- h) Hosting Inter-Faith activities for those of other faiths or no faith.
- i) Supporting Ladies and Gents’ Senior Citizen groups to cater for their physical, emotional and religious needs.
- j) Hosting of various programmes specifically catering for the females of the community.
- k) Supporting the Youth and English Lecture Committee to organise programmes specifically catering for the youth of the community.
- l) Provide training to ensure compliance (e.g. Safeguarding of Children in Madrasah, First Aid at Work, etc.)
- m) Provide Safeguarding and Emotional Support to those in need.
- n) Attendance and affiliation to City-wide organisations (e.g. Muslim Council of Peterborough, Joint Muslims Council, Peterborough Inter-faith Council, Children & Education Scrutiny Panel, etc.).
- o) Provide seminars to increase the awareness of medical issues pertaining to the needs of the community and educate the community in combating them.
- p) Working with Partner Agencies to help both the homeless and those in need (e.g. Husaini Soup Kitchen).
- q) During 2016, the charity incorporated a company named 313 Project Ltd. The company was set up to take over and complete the Al-Qaeem project which had been commenced by the charity at the point where the contractors had failed to meet their obligations under the construction contract. The company's objective is to complete the project and any profits earned annually by the company will be donated back to the charity. The construction of the project is still ongoing at the date of the approval of this report.
- r) On 18 November 2019 a new subsidiary company, 313 Trust Corporation Ltd was incorporated. This is an investment holding company controlled by the charity for the benefit of the charity and for no other purpose. This company purchased an investment property during the period. Its financial position at 31 March 2021 and results for the year then ended are consolidated in these financial statements.
Due to the Covid pandemic, the mosque was closed for the majority of the year. The mosque delivered most of its activities and programmes online or on a restricted numbers basis.
- 2 -
DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8
## **THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **TRUSTEES' REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Financial review**
The results for the year are shown on pages 8 to 11. The consolidated statement of financial activities shows the income and the expenditure analysed between different activities conducted by the group. In order to provide a better understanding of the activities undertaken, a summary of the activities is included.
The Statement of Financial Activities shows how the group's funds have been applied during the year. The gross receipts of the group were £901,383 (2020: £788,212). Donations directly relating to the principal activities amounted to £730,965 (2020: £612,613). During the year, the value of the investment properties increased by £31,615. The group has achieved an overall net income for the year of £551,282 (2020: £935,495). Total reserves of £7,642,136(2020: £7,090,854) have been carried forward to forthcoming years.
## **Reserves policy**
The perpetual nature of the charity's existence means that it will never cease to exist and therefore reserves are carried forward at the end of each financial year. The Trustees and the management committee aim to maintain unrestricted reserves at a level which equates approximately to three months of its unrestricted charitable expenditure, which amounts to £25,000. It is in the Trustees and the management committee views that this level is sufficient to respond to an unexpected level of expenditure as well as finance other recurring expenditure. The Trustees and management committee are not remunerated. The restricted funds all relate to items there the donors have specified its intended use or recipient. Where deficit occur on the restricted funds, the Trustees would normally use the unrestricted funds to disburse them.
## **Investment policy**
The assets of the parent charity are held in the nominee name of the Trustees. The constitution authorises the Trustees to make further capital investments in furtherance of the charity's objectives. All but one of the investment properties owned by the group are held in the names of the group companies limited by guarantee and are consolidated in these financial statements.
## **Risk management**
The Trustees recognise that effective risk management is essential in achieving the Charity's and group’s objectives. Risk management is considered as an integral element of all decision making and identifying appropriate procedures to ensure that risk levels are acceptable in each case. The Trustees believe that it is important to develop and enhance the approach towards risk management, to ensure it remains fit for purpose. The group will formalise its risk management and create a risk register which will be reviewed on regular basis.
The Trustees have considered the potential impact of the coronavirus, and the various measures taken to contain it, on the operations of the Charity.
No immediate concerns in relation to the Charity’s long term future have been identified but this area continues to be monitored.
The Trustees are satisfied that the steps they have taken in the short term are appropriate and effective.
## Future plans
In addition to the objectives outlined above, the group has additional objectives over the forthcoming 12 months period:
- to ensure the construction of the main phase of the Al-Qaeem project is successfully completed after slight delays due to the Covid pandemic.
- to identify other suitable investment opportunities for the charity.
- As restrictions have gradually been relaxed since the year end, the mosque has gradually increased its on-site programmes and activities subject to social distancing measures.
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DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8
## **THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **TRUSTEES' REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Structure, governance and management**
The charity is an unincorporated charity formed under a constitution under a deed dated 2 June 1977 as amended on 11 November 2012 and 6 September 2013. It has been registered with the Charity Commission under reference 273130. The charity also controls three companies. These companies are as follows:
- The Muslim Khoja Shia Ithna-Asheri Community of Peterborough Trust Corporation – Investment holding company.
- 313 Project Ltd – Project Management for the Al-Qaeem project.
- 313 Trust Corporation Ltd – Investment holding company.
The Trustees who served during the year and up to the date of the approval of the financial statements were: Mr S Ebrahim
Mr A Walji Mr A Salehi
Mr N Virji
## Recruitment of new trustees:
In accordance with the constitution, the Trustees are elected at the Biennial General Meeting of the Community and shall hold office for four (4) years. Trustees may not hold office for more than two (2) consecutive terms (eight (8) years).
Any potential new Trustee is already familiar with charities and when appointed as a new Trustee has a full induction to the business of MKSIC Peterborough and its assets.
The charity is managed by the management committee who are elected at the Biennial General Meeting.
The management of the community is undertaken by the Management Committee which comprises of 17 members who administer the charity.
## Connected charities
The charity has a close relationship with The Council of European Jamaats (COEJ) which is member of The World Federation of Khoja Shia lthna-Asheri Muslim Communities, a UK registered charity , number 282303. MKSIC Peterborough collects funds on behalf of COEJ which is the European body that channels donations and contributions to worthwhile causes and calamities throughout Europe and on to the World Federation for international causes.
## **Statement of Trustees' responsibilities**
The Trustees are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.
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DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8
## **THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **TRUSTEES' REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP (FRS102);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and the group and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Appreciation**
The charity relies heavily on services of volunteers. The Trustees wish to thank the Jamaat staff and all the volunteers for their unstinting hard work during the financial year and their on-going efforts in the daily administration of numerous areas of work we do.
The Trustees also wish to acknowledge the immense quantity of high quality work undertaken by staff, officers and volunteers in helping to achieve and deliver the charitable objectives of the charity, especially during the Covid-19 pandemic.
## **Statement of disclosure to auditor**
- a) So far as each Trustee is aware, there is no relevant audit information (information needed by the auditors in connection with preparing their report) of which the company’s auditors are unaware; and
- b) Each Trustee has taken all the steps that they ought to have taken as a Trustee in order to make themselves aware of all relevant audit information and to establish that the auditors are aware of that information.
The Trustees' report was approved by the Board of Trustees.
Mr N Virji
## **Trustee**
Dated: 24 September 2021
- 5 -
DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8
## **THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **INDEPENDENT AUDITOR’S REPORT**
## **TO THE TRUSTEES OF THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **Opinion**
We have audited the financial statements of The Muslim Khoja Shia lthna-Asheri Community of Peterborough (the 'charity') and its group for the year ended 31 March 2021, which comprises the consolidated statement of financial activities, the consolidated statement of financial position, the statement of financial position, the consolidated statement of cash flows, and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 _The Financial Repofting Standard applicable in the UK and Republic of lreland_ (United Kingdom Generally Accepted Accounting Practice).
## In our opinion, the financial statements:
- give a true and fair view of the state of the group's and charity's affairs as at 31 March 2021 and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- - have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (lSAs (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**
ln auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
- 6 -
DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8
## **THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **INDEPENDENT AUDITOR’S REPORT (CONTINUED)**
## **TO THE TRUSTEES OF THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the Trustees' report; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of Trustees**
As explained more fully in the statement of Trustees' responsibilities, 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 the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. ln 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 cease operations, or have no realistic alternative but to do so.
## **Auditor's responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- we identified the laws and regulations applicable to the charity and the group through discussions with management and from our knowledge and experience of the sector and activities of the charity;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including the Charities (Accounts and Reports) Regulations 2008 and the Charities Act 2011;
- we assessed the extent of compliance with the laws and regulations identified through making enquiries of management and inspecting documentation; and
- we identified laws and regulations which were communicated within the audit team and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the financial statements to material misstatements including obtaining an understanding of how fraud might occur by making enquiries of management and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
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DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8
## **THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **INDEPENDENT AUDITOR’S REPORT (CONTINUED)**
## **TO THE TRUSTEES OF THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **Auditor's responsibilities for the audit of the financial statements (continued)**
To address the risk of fraud through management bias and override of controls we performed the following procedures:
- we performed analytical procedures to identify any unusual or unexpected relationships;
- we assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounting policies were indicative of potential bias; and
- we investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations we designed procedures which included, but were not limited to, agreeing financial statement disclosures to underlying supporting documentation and remaining alert for actual and potential litigation and claims during our other audit procedures. We did not identify any key audit matters relating to irregularities, including fraud.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in audit procedures performed and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. Auditing standards also limit the audit procedures required to identify noncompliance with laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council's website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
## **Other matters**
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "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)" (as amended) 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.
This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.
## **Use of our report**
This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. 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 auditors’ 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 and the charity's trustees as a body, for our audit work, for this, or for the opinions we have formed.
## **Deitch Cooper LLP**
24 September 2021
**Statutory Auditor** 2nd Floor Congress House Lyon Road Harrow Middlesex HA1 2EN
Deitch Cooper LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.
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DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8
## **THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**Unrestricted**
**funds**
**2021**
**Notes**
**£**
**Income from:**
Donations and legacies
**4**
82,830
Charitable activities
**5**
38,817
Investments
**6**
93,935
**Total income**
215,582
**Expenditure on:**
Raising funds
**7**
21,869
Charitable activities
**8**
130,407
`
**Total resources expended**
152,276
**Revaluation of investment**
**properties**
31,615
**Net income resources**
**before transfers**
94,921
Gross transfers between
funds
**18**
(14,091)
**Net incoming resources**
80,830
**Other recognised gains and**
**losses**
Revaluation of tangible fixed
assets
-
**Net movement in funds**
80,830
Fund balances at 1 April 2020
4,282,847
**Fund balances at 31 March**
**2021**
4,363,677|**Restricted**
**funds**
**2021**
**£**
648,135
37,666
-
685,801
2,000
227,440
229,440
-
456,361
14,091
470,452
-
470,452
2,808,007
3,278,459|**Total**
**Unrestricted**
**funds**
**2021**
**2020**
**£**
**£**
730,965
112,751
76,483
10,749
93,935
89,844
901,383
213,344
23,869
15,185
357,847
147,256
381,716
162,441
31,615
586,835
551,282
637,738
-
(5,827)
551,282
631,911
-
576,000
551,282
1,207,911
7,090,854
3,074,936
7,642,136
4,282,847|**Restricted**
**funds**
**2020**
**£**
499,862
75,006
-
574,868
800
276,311
277,111
-
297,757
5,827
303,584
-
303,584
2,504,423
2,808,007|**Total**
**2020**
**£**
612,613
85,755
89,844|
|---|---|---|---|---|
|||||788,212|
|||||15,985|
|||||423,567|
|||||439,552|
|||||586,835|
|||||935,495
-|
|||||935,495
576,000|
|||||1,511,495
5,579,359|
|||||7,090,854|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8
## **THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **CONSOLIDATED STATEMENT OF FINANCIAL POSITION**
## _**AS AT 31 MARCH 2021**_
|**2021**
**Notes**
**£**
**£**
**Fixed assets**
Tangible assets
**12**
5,025,928
Investment properties
**13**
2,596,000
7,621,928
**Current assets**
Debtors
**14**
45,001
Cash at bank and in hand
672,592
717,593
**Creditors: amounts falling due within**
**one year**
**16**
(498,503)
**Net current assets**
219,090
**Total assets less current liabilities**
7,841,018
**Creditors: amounts falling due after**
**more than one year**
**17**
(198,882)
**Net assets**
7,642,136
**Funds**
Restricted funds
**18.b**
3,278,459
Unrestricted funds
General unrestricted funds
**18.c**
3,004,259
Revaluation reserve
**18.a**
1,359,418
4,363,677
7,642,136
The accounts were approved by the Trustees on 24 September 2021.
Mr N Virji
Mr R Rahemtulla
**Trustee**
**President**|**2020**
**£**
**£**
4,827,691
2,400,000
7,227,691
73,061
608,675
681,736
(597,522)
84,214
7,311,905
(221,051)
7,090,854
2,808,007
2,923,429
1,359,418
4,282,847
7,090,854|
|---|---|
- 10 -
DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8
## **THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **CHARITY STATEMENT OF FINANCIAL POSITION**
## _**AS AT 31 MARCH 2021**_
||**2021**
**Notes**
**£**
**£**
**Fixed assets**
Tangible assets
**12.a**
5,114,274
Investment properties
**13.a**
165,000
5,279,274
**Current assets**
Debtors
**14.a**
1,700,157
Cash at bank and in hand
628,933
2,329,090
**Creditors: amounts falling due**
**within one year**
**16.a**
(693,265)
**Net current assets**
1,635,825
**Total assets less current liabilities**
6,915,099
**Creditors: amounts falling due after**
**more than one year**
**17.a**
(198,882)
**Net assets**
6,716,217
**Funds of the charity**
Restricted funds
3,293,164
Unrestricted funds
General unrestricted funds
**18.a**
2,063,635
Revaluation reserve
1,359,418
3,423,053
6,716,217
The accounts were approved by the Trustees on 24 September 2021.
Mr N Virji
Mr R Rahemtulla
**Trustee**
**President**|**2020**
**£**
**£**
4,900,012
170,000
5,070,012
1,603,331
469,106
2,072,437
(735,509)
1,336,928
6,406,940
(221,051)
6,185,889
2,817,126
2,009,345
1,359,418
3,368,763
6,185,889|
|---|---|---|
||||
- 11 -
DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8
## **THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **CONSOLIDATED STATEMENT OF CASH FLOWS**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**Notes**
**Cash flows from operating activities**
Cash generated from operations
**23**
**Investing activities**
Purchase of tangible fixed assets
Purchase of investment property
Investment income received
**Net cash used in investing activities**
**Financing activities**
Repayment of loans
**Net cash used in financing activities**
**Net increase/(decrease) in cash and cash equivalents**
Cash and cash equivalents at beginning of year
Effect of foreign exchange rates
**Cash and cash equivalents at end of year**|**2021**
**£**
**£**
453,068
(287,416)
(164,385)
93,935
(357,866)
(20,811)
(20,811)
74,391
608,675
(10,474)
672,592|**2020**
**£**
**£**
513,806
(461,320)
(333,165)
89,844
(704,641)
(18,775)
(18,775)
(209,610)
812,003
6,282
608,675|
|---|---|---|
- 12 -
DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8
## **THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **NOTES TO THE FINANCIAL STATEMENTS**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies**
## **Charity information**
The Muslim Khoja Shia Ithna-Asheri Community of Peterborough (“the charity”) is an unincorporated charity formed under a constitution under a deed. The principal place of business is 2-8 Burton Street, Peterborough, Cambridgeshire, PE1 5HD.
## **1.1 Accounting convention**
The accounts have been prepared in accordance with the charity's constitution, 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)” (as amended for accounting periods commencing from 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The accounts 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 accounts are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
## **1.2 Basis of consolidation**
The consolidated financial statements include the results for the year, of the charity and all associated companies that the group controls and their net assets at the year-end date. Transactions between associated undertakings are eliminated on consolidation. Control is the power to govern the financial and operating policies of the associated company so as to obtain benefits from its activities.
The group financial statements include the financial statements of The Muslim Khoja Shia Ithna-Asheri Community of Peterborough, The Muslim Khoja Shia Ithna-Asheri Community of Peterborough Trust Corporation, 313 Project Ltd and 313 Trust Corporation Ltd. A separate Statement of Financial Activities, or income and expenditure account, for the charity itself is not presented.
## **1.3 Going concern**
At the time of approving the accounts, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The Trustees have considered the levels of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern. Thus, the Trustees continue to adopt the going concern basis of accounting in preparing the accounts.
## **1.4 Charitable funds**
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.
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 accounts.
## **1.5 Incoming resources**
All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:
Voluntary income is received by way of grants, donations and gifts and is included in full in the statement of financial activities when receivable. Grants, including capital grants, where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant. If the terms of the grant impose conditions the grant is only recognised as income when the conditions are met. Grants received before the revenue recognition criteria are met are recognised as a liability.
- 13 -
DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8
## **THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies (continued)**
## **1.6 Resources expended**
Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which it relates.
Raising funds comprise the costs associated with attracting voluntary income and for costs incurred for the investment properties.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
## **1.7 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:
Land and buildings Straight line over 50 years Fixtures, fittings & equipment 25% straight line Plant and equipment 25% straight line
## **1.8 Investment properties**
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially measured at cost and subsequently measured using the fair value model and stated at its fair value as at the reporting end date. The net gain or loss on revaluation is recognised in net income/(expenditure) for the year.
## **1.9 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.
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
## **1.10 Cash and cash equivalents**
Cash at bank and in hand are basic financial assets and 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.
## **1.11 Financial instruments**
Financial assets and financial liabilities are recognised in the statement of financial position when the charity becomes party to the contractual provisions of the instrument. Financial instruments are measured at amortised cost or fair value, which is normally transaction price.
- 14 -
DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8
## **THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **2 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **3.a Income Earned from other Activities**
The following entities, all incorporated in England and Wales, form part of the group:
|||||||**Control**|**Control**||||
|---|---|---|---|---|---|---|---|---|---|---|
||The Muslim Khoja Shia Ithna-Asheri Community|||of Peterborough Trust||100 %|control of assets||||
||Corporation (company number|08382399)|||||||||
||313 Project Ltd (company number||10122041)|||100 %|control of assets||||
||313 Trust Corporation Ltd (company number 12319023)|||||100 %|control of assets||||
||(incorporated 18 November 2019)||||||||||
|||**313 Trust Corporation**|||**313 Project Ltd**||**The Muslim Khoja Shia**||||
||||**Ltd**||||**Ithna-Asheri**||**Community**||
||||||||**of Peterborough**|||**Trust**|
||||||||**Corporation**||||
||||**2021**|**2020**|**2021**|**2020**||**2021**||**2020**|
||||**£**|**£**|**£**|**£**||**£**||**£**|
||Income||-|-|300,728|493,087||-||-|
||Expenditure||-|-|(300,792)|(493,410)||-||-|
||Net gains on investments||30,000|16,835|-|-||6,615||500,000|
||**Net (Loss)/Gain**||30,000|16,835|(64)|(323)||6,615||500,000|
||**The assets and liabilities of**||||||||||
||**the subsidiary were:**||||||||||
||Assets||380,000|350,000|281,364|332,101||2,270,549|2,120,361||
||Liabilities||(333,165)|(333,165)|(281,894)|(332,567)||(1,302,285)|(1,158,712)||
||**Capital and Reserves**||46,835|16,835|(530)|(466)||968,264||961,649|
|`|||||||||||
- 15 -
DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8
## **THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **3.b Financial performance of the Charity**
The Financial activities shown in the consolidated financial statements include those of the charity’s associates. A summary of the financial activities undertaken by the charity is set out below:
|Income
Expenditure on raising funds
Expenditure on charitable activities
Revaluation of investment properties
Net income for the year
Revaluation of tangible fixed assets
Total movement in funds
Total funds brought forward
Total funds carried forward|**2021**
**£**
911,692
(24,103)
(352,261)
(5,000)
530,328
-
530,328
6,185,889
6,716,217|**2020**
**£**
808,601
(15,751)
(422,651)
70,000|
|---|---|---|
|||440,199
576,000|
|||1,016,199
5,169,690|
|||6,185,889|
## **4 Donations and legacies**
|82,830
648,135
**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**£**
**£**
Donations and gifts
49,216
648,135
Covid-19 related grants
9,290
-
Membership fees
24,324
-
**Donations and gifts**
Al-Qaeem donations
-
539,064
Panjatanpak nyaz
-
234
Senior citizens
-
-
Third party collections
-
108,837
Gift aid
31,791
-
Jamaat funds (general)
7,951
-
Majlis and nyaz
8,309
-
Imam Zamin
877
-
Chawda masumeen
288
-
49,216
648,135|730,965
112,751
499,962
**Total**
**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2020**
**2020**
**£**
**£**
**£**
697,351
85,974
499,962
9,290
24,324
26,777
-
539,064
-
373,556
234
-
1,278
-
-
350
108,837
-
124,678
31,791
50,615
-
7,951
24,418
-
8,309
7,022
-
877
889
-
288
3,030
-
697,351
85,974
499,862|**Total**
**2020**
**£**
585,836
26,777|
|---|---|---|
|||612,613|
|||373,556
1,278
350
124,678
50,615
24,418
7,022
889
3,030|
|||585,836|
Covid-19 related grants comprises amounts received directly from the government under the Coronavirus Job Retention Scheme. Amounts totalling £9,290 were received to compensate for wages costs already incurred by the group during the Covid-19 pandemic.
- 16 -
DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8
## **THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
The Charity benefits greatly from the involvement and support of many volunteers who assist with a wide range of activities. In accordance with FRS102 and the Charities SORP (FRS102) the economic contribution of general volunteers is not recognised in the financial statements
## **5 Charitable activities**
|**Education**
**Religious**
**£**
**£**
ELC
-
-
Muharram and Hazrat
Abbas
-
38,817
Income from Madressa
-
-
Pre-school grants
7,519
-
Youth
-
100
Income from pre-school
373
-
Tabligh
-
11,195
Income from burial
scheme
-
-
7,892
50,112
**Analysis by fund**
Unrestricted funds
-
38,817
Restricted funds
7,892
11,295
7,892
50,112
**For the year ended 31 March 2020**
Unrestricted funds
-
10,749
Restricted funds
46,351
3,136
46,351
13,885
**Income from investments**
Rental income
Interest receivable|**Burial**
**Madressa**
**£**
**£**
-
-
-
-
-
-
-
-
-
-
-
-
-
-
18,479
-
18,479
-
-
-
18,479
-
18,479
-
-
-
20,612
4,907
20,612
4,907|**Total**
**2021**
**£**
-
38,817
-
7,519
100
373
11,195
18,479
76,483
38,817
37,666
76,483
**2021**
**£**
93,935
-
93,935|**Total**
**2020**
**£**
557
10,749
4,907
39,676
627
6,675
1,952
20,612|
|---|---|---|---|
||||85,755|
||||10,749
75,006|
|||||
||||85,755|
||||**2020**
**£**
89,833
11|
||||89,844|
## **6 Income from investments**
- 17 -
DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8
## **THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **7 Raising funds**
|**8**
|**Charitable activities**
**Education**
**Religious**
**£**
**£**
Staff costs
21,515
10,330
Third party collections
-
96,265
ELC
-
-
Panjatanpak nyaz
-
250
Senior citizen
-
-
Tabligh
-
25,256
Bank loan interest and
charges
-
6,399
Youth
-
130
Alim and mulyani
-
9,614
Preschool expenses
3,771
-
Burial
-
-
Madressa expenses
-
-
Majlis and nyaz
-
675
Muharram fund
-
29,590
Events and functions
-
2,125
25,286
180,634
Share of support costs
(see note 9)
8,390
120,551
33,676
301,185
**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**£**
**£**
Fundraising and publicity
Seeking donations, grants
and legacies
-
2,000
Fundraising agents
12,849
-
Other fundraising costs
9,020
-
Fundraising and publicity
21,869
2,000
21,869
2,000||**Burial**
**Madressa**
**£**
**£**
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
20,577
-
-
2,409
-
-
-
-
-
-
20,577
2,409
-
-
20,577
2,409
**Total**
**Unrestricted**
**funds**
**2021**
**2020**
**£**
**£**
2,000
-
12,849
10,140
9,020
5,045
23,869
15,185
23,869
15,185|**Total**
**2021**
**£**
31,845
96,265
-
250
-
25,256
6,399
130
9,614
3,771
20,577
2,409
675
29,590
2,125
228,906
128,941
357,847
**Restricted**
**funds**
**2020**
**£**
800
-
-
800
800|**Total**
**2020**
**£**
800
10,140
5,045|
|---|---|---|---|---|---|
||||||15,895|
||||||15,895|
||||||**Total**
**2020**
**£**
70,433
133,609
-
1,702
2,471
5,758
8,717
652
2,860
4,544
8,402
3,794
5,264
13,357
12,267|
||||||273,830
149,737|
||||||423,567|
- 18 -
DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8
## **THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **8 Charitable activities (continued)**
|**Education**
**Religious**
**£**
**£**
**Analysis by fund**
Unrestricted funds
8,390
122,017
Restricted funds
25,286
179,168
33,676
301,185
**For the year ended 31 March 2020**
Unrestricted funds
11,134
136,122
Restricted funds
43,954
217,161
58,088
353,283
**9**
**Support costs**
**Support**
**costs**
**Total**
**2021**
**2021**
**£**
**£**
Staff costs
13,012
13,012
Depreciation
84,837
84,837
Secretariat
40
40
Cleaning and waste
1,939
1,939
General expenses
489
489
Telephone and internet
1,359
1,359
Bank charges
2,153
2,153
Insurance
14,558
14,558
Foreign exchange
(14,007)
(14,007)
Repairs
655
655
Light and heat
10,612
10,612
Rates and water
1,044
1,044
Audit fees
9,050
9,050
Legal and professional
2,400
2,400
Subscriptions
800
800
128,941
128,941
Analysed between
Charitable activities
128,941
128,941||**Burial**
**Madressa**
**Total**
**2021**
**Total**
**2020**
**£**
**£**
**£**
**£**
-
-
130,407
20,577
2,409
227,440
20,577
2,409
357,847
-
-
147,256
8,402
3,794
276,311
8,402
3,794
423,567
**Support**
**costs**
**Total Basis of allocation**
**2020**
**2020**
**£**
**£**
12,410
12,410Usage
70,165
70,165 Property usage
130
130Usage
5,874
5,874Usage
3,639
3,639Usage
2,293
2,293Usage
2,726
2,726Bank transactions
10,421
10,421Area
8,117
8,117Directly attributable
2,511
2,511Usage
14,588
14,588Area
1,950
1,950Area
8,650
8,650Directly attributable
5,463
5,463Directly attributable
800
800Directly attributable
149,737
149,737
149,737
149,737|**Total**
**2020**
**£**
147,256
276,311|
|---|---|---|---|
|||||
|||||
||||423,567|
|||||
## **10 Trustees**
None of the Trustees (nor any persons connected with them) received any remuneration or benefits from the charity during the year (2020: £nil).
- 19 -
DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8
## **THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **11 Employees**
## **Number of employees**
The average monthly number of employees during the year was:
|Nursery
Resident Alim
Caretaker
Others
**Employment costs**
Wages and salaries
Social security costs
Oher pension costs|**2021**
**Number**
2
1
1
2
6
**2021**
**£**
43,801
-
1,056
44,857|**2020**
**Number**
4
1
1
2|
|---|---|---|
|||8|
|||**2020**
**£**
79,385
1,291
2,167|
|||82,843|
There were no employees whose annual remuneration was £60,000 or more.
## **12 Tangible fixed assets - The group**
|**Tangible fixed assets - The group**|||
|---|---|---|
|**Cost or valuation**
At 1 April 2020
Additions
At 31 March 2021
**Depreciation and impairment**
At 1 April 2020
Depreciation charged in the year
At 31 March 2021
**Carrying amount**
At 31 March 2021
At 31 March 2020|**Land and**
**buildings**
**Plant and**
**equipment**
**Fixtures,**
**fittings &**
**equipment**
**£**
**£**
**£**
5,240,529
1,260
61,055
278,950
-
4,124
5,519,479
1,260
65,179
414,683
762
59,708
84,001
195
641
498,684
957
60,349
5,020,795
303
4,830
4,825,846
498
1,347|**Total**
**£**
5,302,844
283,074|
|||5,585,918|
|||475,153
84,837|
|||559,990|
|||5,025,928|
|||4,827,691|
- 20 -
DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8
## **THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **12 Tangible fixed assets (continued)**
Land and buildings includes revalued assets with a carrying amount of £1,979,340 (2020: £2,010,000). The most recent revaluation had an effective date of 31 March 2020 and was made by a professional valuer not connected to the charity.
At 31 March 2021, had the revalued assets been carried at historic cost less accumulated depreciation and accumulated impairment losses, their carrying amount would have been approximately £447,584 (2020: £461,401).
## **12.a Tangible fixed assets - The charity**
|**Cost or valuation**
At 1 April 2020
Additions
At 31 March 2021
**Depreciation and impairment**
At 1 April 2020
Depreciation charged in the year
At 31 March 2021
**Carrying amount**
At 31 March 2021
At 31 March 2020|**Land and**
**buildings**
**£**
5,313,348
294,780
5,608,128
414,683
84,001
498,684
5,109,444
4,898,665|**Fixtures,**
**fittings &**
**equipment**
**£**
61,055
4,124
65,179
59,708
641
60,349
4,830
1,347|**Total**
**£**
5,374,403
298,904|
|---|---|---|---|
||||5,673,307|
||||474,391
84,642|
||||559,033|
||||5,114,274|
||||4,900,012|
Land and buildings includes revalued assets with a carrying amount of £1,979,340 (2020: £2,010,000). The most recent revaluation had an effective date of 31 March 2020 and was made by a professional valuer not connected to the charity.
At 31 March 2021, had the revalued assets been carried at historic cost less accumulated depreciation and accumulated impairment losses, their carrying amount would have been approximately £447,584 (2020: £461,401).
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DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8
## **THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **13 Investment property - The group**
|**Fair value**
At 1 April 2020
Additions
Net gains and losses through fair value adjustments
At 31 March 2021|**2021**
**£**
2,400,000
164,385
31,615|
|---|---|
||2,596,000|
Investment property comprises freehold property held for rental and capital appreciation. The fair value of the investment property has been arrived at from reviewing market evidence from sources not connected with the charity. The valuation is by the Trustees on an open market value basis. The most recent professional valuation by an independent valuer had an effective date of 31 March 2020.
At 31 March 2021, had the investment property been carried at historic cost rather than on a fair value basis the carrying amount would have been £1,456,542 (2020: £1,292,157).
## **13.a Investment property - The charity**
|**Fair value**
At 1 April 2020
Net gains and losses through fair value adjustments
At 31 March 2021|**2021**
**£**
170,000
(5,000)|
|---|---|
||165,000|
Investment property comprises freehold property held for rental and capital appreciation. The fair value of the investment property has been arrived at from reviewing market evidence from sources not connected with the charity. The valuation is by the Trustees on an open market value basis. The most recent professional valuation by an independent valuer had an effective date of 31 March 2020.
At 31 March 2021, had the investment property been carried at historic cost rather than on a fair value basis the carrying amount would have been £50,095 (2020: £50,095).
## **14 Debtors - The group**
|**Amounts falling due within one year:**
Other debtors
Prepayments and accrued income|**2021**
**£**
42,574
2,427
45,001|**2020**
**£**
66,710
6,351|
|---|---|---|
|||73,061|
Other debtors includes £690 (2020: £690) stock of religious ornaments, £31,791 (2020: £50,615) of gift aid tax claims and VAT recoverable of £9,071 (2020: £15,405).
There were no amounts falling due after one year (2020: £nil).
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DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8
## **THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **14.a Debtors - The charity**
|**Amounts falling due within one year:**
Amounts due from fellow group undertakings
Other debtors
Prepayments and accrued income
**Amounts falling due after one year:**
Amounts due from fellow group undertakings
**Total debtors**|**2021**
**£**
250,000
32,481
1,775
284,256
1,415,901
1,700,157|**2020**
**£**
250,000
98,126
3,689|
|---|---|---|
|||351,815|
|||1,251,516|
|||1,603,331|
Other debtors due within one year includes £690 (2020: £690) stock of religious ornaments, £31,791 (2020: £50,615) of gift aid tax claims and payments on account to a fellow group undertaking of £nil (2020: £46,821).
## **15 Loans and overdrafts**
|Bank loans (secured)
Payable within one year
Payable after one year|**2021**
**2020**
**£**
**£**
219,549
240,360
20,667
19,309
198,882
221,051|
|---|---|
The long-term loans are secured by fixed charges over the investment properties held by The Muslim Khoja Shia Ithna-Asheri Community of Peterborough Trust Corporation.
A market rate of interest is charged on the bank loans.
## **16 Creditors: amounts falling due within one year - The group**
|**Notes**
Bank loans (secured)
**15**
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income|**2021**
**£**
20,667
455
26,906
441,205
9,270
498,503|**2020**
**£**
19,309
5,460
26,604
537,265
8,884|
|---|---|---|
|||597,522|
Included within other creditors are private loans received from community members of £439,937 (2020: £535,918). These loans have no fixed term, are interest free and are repayable on demand.
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DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8
## **THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **16.a Creditors: amounts falling due within one year - The charity**
|Borrowings
Other taxation and social security
Other creditors
Accruals and deferred income|**2021**
**£**
20,667
85
652,950
19,563
693,265|**2020**
**£**
19,309
915
535,918
179,367|
|---|---|---|
|||735,509|
Borrowings represents an obligation to a fellow group undertaking.
Included within other creditors are private loans received from community members of £439,937 (2020: £535,918) and amounts due to a fellow group undertaking totalling £213,013 (2020: £nil). These loans have no fixed term, are interest free and are repayable on demand.
## **17 Creditors: amounts falling due after more than one year - The group**
|**Notes**
Bank loans (secured)
**15**
**Creditors: amounts falling due after more than one year - The charity**
Borrowings|**2021**
**2020**
**£**
**£**
198,882
221,051
**2021**
**2020**
**£**
**£**
198.882
221,051|
|---|---|
## **17.a Creditors: amounts falling due after more than one year - The charity**
Borrowings
Borrowings represents an obligation to a fellow group undertaking.
## **18.a Unrestricted funds**
|**Movement in funds**
**Balance at 1**
**April 2020**
**Income**
**Expenditure**
**£**
**£**
**£**
General fund
2,923,429
215,582
(152,276)
2,923,429
215,582
(152,276)|**Transfer RevaluationBalance at 31**
**March 2021**
**£**
**£**
**£**
(14,091)
31,615
3,004,259
(14,091)
31,615
3,004,259|
|---|---|
The general fund comprises the “free reserves” after allowing for any other unrestricted funds.
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DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8
## **THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **18.b Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
|**Balance at 1 April 2020**
**£**
Al-Qaeem
2,614,123
Burial
123,603
Panjatanpak nyaz
23,379
Pre-school
24,817
Senior citizens
-
Third party collections
14,072
ELC
557
Youth
-
Madressa
7,456
Tabligh
-
2,808,007
**Balance at 1 April 2019**
**£**
Al-Qaeem
2,314,336
Burial
111,393
Panjatanpak nyaz
23,803
Pre-school
25,420
Senior citizens
125
Third party collections
23,003
ELC
-
Youth
-
Madressa
6,343
Tabligh
-
2,504,423|**Movement in funds**
**Income Expenditure**
**£**
**£**
539,064
(59,266)
18,479
(20,577)
234
(250)
7,892
(25,287)
-
-
108,837
(96,265)
-
-
100
(130)
-
(2,409)
11,195
(25,256)
685,801
(229,440)
**Movement in funds**
**Income Expenditure**
**£**
**£**
373,556
(73,769)
20,612
(8,402)
1,278
(1,702)
46,351
(46,954)
350
(2,471)
124,678
(133,609)
557
-
627
(652)
4,907
(3,794)
1,952
(5,758)
574,868
(277,111)|**Transfers Balance at 31**
**March 2021**
**£**
**£**
-
3,093,921
-
121,505
-
23,363
-
7,422
-
-
-
26,644
-
557
30
-
-
5,047
14,061
-
14,091
3,278,459
**Transfers Balance at 31**
**March 2020**
**£**
**£**
-
2,614,123
-
123,603
-
23,379
-
24,817
1,996
-
-
14,072
-
557
25
-
-
7,456
3,806
-
5,827
2,808,007|
|---|---|---|
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DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8
## **THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
## Description of funds
Al-Qaeem donations - donations specific for the building of the new community centre.
ELC - donations specific for the use of the English Lecture Committee.
Youth - donations given for the youths of the community to enable them to run their programs.
Madressa - funds given specifically for the use of the religious school.
Burial - relates to subscriptions given specifically for the use of future burial needs.
Panjatanpak nyaz - donations collected specifically for the provisions of feasts for the holy panjatans.
Pre-school - funds collected specifically for the use of the pre-school.
Senior citizens - specific donations for the use of the senior citizens.
Tabligh - specific donations for the propagation of the message of Islam.
Third party collections - religious collections specifically collected on behalf of The World Federation and The Council of European Jamaats.
## Description of the transfers
The transfers were made from unrestricted funds to restricted funds to cover the deficit of the restricted funds within the objectives of the charity.
## **18.c Revaluation reserve**
|**Balance at**
**1 April 2020**
**£**
Freehold property
1,359,418
1,359,418|**Movement in funds**
**Income Expenditure Revaluation**
**Gains**
**£**
**£**
**£**
-
-
-
- -
-|**TransferBalance at 31**
**March 2021**
**£**
**£**
-
1,359,418
-
1,359,418|
|---|---|---|
Freehold property – gains and losses arising on revaluation of freehold land and buildings other than investment property.
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DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8
## **THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **19 Analysis of net assets between funds**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**£**
**£**
Fund balances at 31
March 2021 are
represented by:
Tangible assets
1,984,170
3,041,758
Investment properties
2,596,000
-
Current assets/(liabilities)
(17,611)
236,701
Long term liabilities
(198,882)
-
4,363,677
3,278,459|**Total**
**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2020**
**2020**
**£**
**£**
**£**
5,025,928
2,011,347
2,816,344
2,596,000
2,400,000
-
219,090
92,551
(8,337)
(198,882)
(221,051)
-
7,642,136
4,282,847
2,808,007|**Total**
**2020**
**£**
4,827,691
2,400,000
84,214
(221,051)|
|---|---|---|
|||7,090,854|
## **20 Events after the reporting date**
The Covid-19 coronavirus pandemic is still ongoing at the date of the approval of these financial statements and the overall future effects cannot be reliably estimated at this time based on all available information. In the opinion of the Trustees, the identified risks and disruption associated with the pandemic have been successfully mitigated to date and no future financial or operational concerns have been identified. The Trustees expect the potential financial impact of Covid-19 to be temporary and the group has sufficient resources and trading to continue its activities for the foreseeable future.
## **21 Related party transactions**
Private loans from community members, within other creditors, include a loan received from Mr N Virji, a trustee, amounting to £nil (2020: £100,000). The loan is interest free and repayable on demand.
## **22 Connected parties**
The charity, although independent, is involved with a wider network of charities. It is a member of The Council of European Jamaats (COEJ) which represents the charity at the global organisation, The World Federation of Khoja Shia Ithna-Asheri Muslim Communities (WF). Both charities are registered with the Charities Commission in the UK. WF represents Peterborough Jamaat when dealing with international work which includes disaster and general relief outside the UK. During the year, the amounts collected on their behalf were £108,837 (2020: £124,678) and payments of £96,265 (2020: £133,609) were made to them.
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DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8
## **THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**23**|**Cash generated from operations**|||**2021**|**2020**|
|---|---|---|---|---|---|
|||||**£**|**£**|
||Surplus for the year|||551,282|935,495|
||Adjustments for:|||||
||Investment income recognised in Statement of Financial|Activities||(93,935)|(89,844)|
||Foreign exchange differences|||(14,007)|8,117|
||Fair value gains and losses on investment properties|||(31,615)|(586,835)|
||Depreciation and impairment of tangible fixed assets|||84,837|70,165|
||Movements in working capital:|||||
||Decrease/(Increase) in debtors|||30,107|(34,301)|
||(Decrease)/increase in creditors|||(73,601)|211,009|
||**Cash generated from operations**|||453,068|513,806|
|**24**|**Analysis of changes in net funds**|||||
|||**At 1 April**|**Cash flows**|**Foreign**|**At 1 March**|
|||**2020**||**exchange**|**2021**|
|||||**movements**||
|||**£**|**£**|**£**|**£**|
||Cash at bank and in hand|608,675|74,391|(10,474)|672,592|
||Loans falling due within one year|(19,309)|(1,358)|-|(20,667)|
||Loans falling due after more than one year|(221,051)|22,169|-|(198,882)|
|||368,315|95,202|(10,474)|453,043|
## **25 Guarantee**
Under the terms of a bank loan between Barclays Bank and The Muslim Khoja Shia Ithna-Asheri Community of Peterborough Trust Corporation, the group is required to provide a security of investment properties with a market value of at least £950,000.
- 28 -