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2021-03-31-accounts

Cambridge Muslim Welfare Society

Annual Report and Financial Statements

For

The Year Ended 31[st] March 2021

Charity number: 273568

2

CONTENTS

LEGAL AND ADMINISTRATIVE INFORMATION ...................................................................................................................................................... 3 TRUSTEES’ ANNUAL REPORT ................................................................................................................................................................................. 4 INDEPENDENT EXAMINER’S REPORT ON THE ACCOUNTS .................................................................................................................................... 6 FINANCIAL STATEMENTS....................................................................................................................................................................................... 8 Statement of Financial Activities ...................................................................................................................................................................... 8 Balance Sheet ................................................................................................................................................................................................... 9 Notes to the Financial Statements ............................................................................................................................................................10-12

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

Muhammad Pervaiz Malak (Chairman) Muhammad Azam Bhatti (General Secretary) Mahomed Rafique Amode (Assistant Secretary) Mohammed Bazlur Rashid (Treasurer) Mohammed Mahmood Mohammed Irfan Kamaluddeen Abdullahi Ibrahim

Principal Office

Abu Bakr Jamia Mosque 1A Mawson Road Cambridge CB1 2DZ, UK Telephone: +44 (0)1223 501012 Website: www.cambridgemosque.com

Principal Bankers

Lloyds Bank plc 90A Mill Road Cambridge CB1 2BE, UK

Public Contact

Muhammad Pervaiz Malak 214A Mill Road Cambridge CB1 3NF

Email: Muhammadmalak214@gmail.com Website: www.cambridgemosque.com

4

TRUSTEES’ ANNUAL REPORT

Trustees are pleased to present their report together with the financial statements for the year ended 31 March 2021.

Cambridge Muslim Welfare Society is a registered charity and is governed by its constitution. The charity was established with the following aims and objectives:

The Charity’s work is supported by a number of volunteers and it has an Imam and a khateeb who are employed for arranging prayers and educational activities in the mosque.

Day to day activities of the Charity are operated by the Executive Trustees.

The Charity is dependent on donations from individuals for its funding. It also receives rental income from its property at 175 Chesterton Road, Cambridge.

REVIEW OF PROGRESS AND ACHIEVEMENTS

Despite the reduction in the number of people attending the mosque for daily communal services, following the opening of Cambridge Central Mosque in 2019, the activity of the Charity has remained focused in meeting the aims and objectives of the organisation. We continuously endeavoured to provide improvements in the facilities for congregational prayers, education and other activities in the mosque for Muslims living in Cambridge and the surrounding areas both by face-face events or online. Our regular classes and events continue to go from strength to strength.

Being a university town, Cambridge hosts a large number of Muslim students from all over the World every year. The Society plays a unique role in Cambridge for a diverse Muslim community.

The Society promotes inter-faith dialogue and social cohesion. From time to time the Society had dialogues with the representatives of various faith groups in order to establish good relationship with the Christians and people of other faiths of this area. The Society also arranged orientation courses in the form of mosque open days, neighbour’s tea invitations and organizing mosque tours to help understand the religious and cultural aspects of Muslim life. The Society regularly facilitates visits by students from various schools. During the year, the Society organized open days and various other activities for the wider community to visit the mosque and have a first-hand knowledge of Islam and Muslim culture.

Upon requests from the Addenbrookes Hospital Chaplaincy, visits were made for counselling the patients coming from outside areas

5

Reserves policy

The Trustees regard the equivalent of three months operational expenses as an appropriate level of reserves. The present level of funding is adequate to support the continuation of the current level of our mosque activities and the Committee considers the financial position of the charity to be satisfactory.

Going Concern

Despite the drop in weekly collection from the congregation gathering, the charity has maintained its financial sustainability by means of continuous donation being received via standing order donation and face-face collection, together with income from rental of charity property. This has and has resulted in regular inflow of funds to maintain charity activity. The Executive Committee continues to explore options for generating additional income from its current premises and will hand over findings to the incoming executive committee (election pending) for final resolution.

Muhammad Pervaiz Malak

Chairman

6

INDEPENDENT EXAMINER’S REPORT ON THE ACCOUNTS

Independent examiner’s report to the trustees of ‘Cambridge Muslim Welfare Society’

I report on the accounts of the Society for the year ended 31 March 2021, which are set out on pages 8 to 12.

Respective responsibilities of trustees and examiner

The charity's trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit

is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed.

It is my responsibility to:

Basis of independent examiner’s statement

My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a

‘true and fair’ view and the report is limited to those matters set out in the statement below.

Independent examiner's statement

In connection with my examination, no material matters have come to my attention which gives me cause to believe that in, any material respect:

I 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.

7

Signed: Date: 27[th] January 2022

Name: Moin Uddin

Relevant professional qualification: Associate member of Chartered Institute of Management Accountants Address: 283 Campkin Road, Cambridge, CB4 2LD

8

FINANCIAL STATEMENTS

Statement of Financial Activities

For year ended 31[st] March 2021

Incoming resources from
generated funds:
Notes
Voluntary - Donations
Voluntary - Zakah
Voluntary - Zakah al-Fitr
Other income
2
Total income
Resources expended
Charitable activities
3
Costs of generating funds
Total resources expended
Movement in total funds for
the year
Net Income (Expenditure) for
the year
Transfer between funds
Net movement in funds
Reconciliation of funds:
Funds brought forward at 01.04.2020
Funds carried forward at 31.03.2021		 Unrestricted
Funds
£
21,116
-
-
85,369
106,485
84,022
-
84,022
22,463
-
22,463
384,900
407,363		 Restricted
Funds
£
-
3,335
797
-
4,132
5,082
-
5,082
(950)
-
(950)
5,065
4,115		 March 2021
Total
Funds
£
21,116
3,335
797
85,369
110,617
89,104
-
89,104
21,513
-
21,513
389,965
411,478		 March 2020
Total
Funds
£
48,467
2,865
2,495
34,431
88,258
97,349
-
97,349
(9,091)
-
(9,091)
399,056
389,965

9

Balance Sheet

As at 31[st] March 2021

Fixed Assets
Tangible Fixed Assets
Current Assets
Investments
Debtors
Cash and bank balances
Creditors
Amounts falling due within
one year
Net Current Assets
NET ASSETS
REPRESENTED BY:
Restricted funds
Unrestricted funds
TOTAL FUNDS		 Notes
5
6
7
8		 March
2021
£
1,738
6,135
87,102
94,975
(9,405)
(9,405)		 March
2021
£
325,908
325,908
85,570
411,478
4,115
407,363
411,478		 March
2020
£
1,738
8,535
55,512
65,785
(9,074)
(9,074)		 March
2020
£
333,254
333,254
56,711
389,965
5,065
384,900
389,965

The accounts were approved and authorised for issue by the Board of Trustees on and signed on its behalf by:

Muhammad Pervaiz Malak

Chairman Date: 27[th] January 2022

Mohammed Bazlur Rashid

Treasurer

Date: 27[th] January 2022

10

Notes to the Financial Statements

1. Accounting Policies

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention, and in accordance with the Statement of Recommended Practice (SORP), 'Accounting and Reporting by Charities' published in March 2005.

Tangible fixed assets and depreciation

Fixed assets held by the charity consists of freehold properties. Depreciation of these properties is not provided. Purchase of equipment are treated as revenue expense and those are written off in the year of purchase in full. Purchase and installation of other large expenditure such as Carpets and Air conditioning will be capitalised and depreciated over a useful life of 4 years.

Fund accounting

General funds are unrestricted funds which are available for use at the discretion of Trustees in furtherance of general activities of the charity which have not been designed for other purposes. Restricted funds are to be used in accordance with particular purposes for which the funds were raised by the charity. Any difference in expenditure and income is to be transferred to the general fund except for Zakah Fund.

Going Concern

Following the opening of the central mosque (located in close proximity), the charity anticipated an impact in its revenue-raising opportunities. This aspect has been further exacerbated as the charity suspended its face to face activities in compliance with governments announcement on 23[rd] March 2020 of the first lockdown. Despite these concerns the charity has maintained its financial sustainability and hopes to access government’s business support measures such as the Furlough Scheme and Local Restrictions Support Grants (LRSG) during lockdown. Furthermore, the Executive Committee is also evaluating options for generating additional income from its current premises.

In March 2020 – Charity commission issued an Order for the charity to hold election for the appointment of new body of trustees. The commission has been notified that the process could not be conducted within the specified timeframe, due to the government announcement of Covid-19 lockdown. The process with be completed following the lifting of the lockdown.

2. Other Income

Rental Income
Tuition fees
Dividends received
Ramadan Fund
Funeral appeal
HMRC JRS Grant
Local Restriction Support Grant
Total		 Unrestricted
Funds
£
25,323
720
-
-
-
18,269
41,057
85,369		 Restricted
Funds
£
-
-
-
-
-
-
-
-		 Total Funds
2021
£
25,323
720
-
-
-
18,269
41,057
85,369		 Total Funds
2020
£
23,744
2,829
123
3,162
4,573
-
-
34,431

11

3. Charitable Activities

Salaries and NIC
Rates and water
Light and heat
Insurance
Cleaning
Repairs and maintenance
Office costs
Payroll Services
Bank Charges
Events and celebrations
Sundries
Ramadan arrangements
Air-conditioning
Carpets
Covid-19 PPE
Zakah
Zakah al-Fitr
Professional fees
Total		 Unrestricted
Funds
£
59,265
3,863
5,774
2,087
489
1,810
1,657
-
333
-
120
-
5,391
1,955
978
-
-
300
84,022		 Restricted
Funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,200
882
-
5,082		 Total Funds
2021
£
59,265
3,863
5,774
2,087
489
1,810
1,657
-
333
-
120
-
5,391
1,955
978
4,200
882
300
89,104		 Total Funds
2020
£
58,649
5,956
6,944
2,169
2,392
2,081
487
70
596
262
393
3,162
5,391
1,955
-
3,750
2,495
597
97,349

4. Analysis of Employee costs

Salaries
Social security costs
Recruitment expenses
Interest PAYE
Total
The average number of employees		 2021
£
55,609
3,656
-
-
59,265
4		 2020
£
54,990
3,659
-
-
58,649
4

5. Fixed Assets

12

Cost
Valuation/Cost 1 April 2020
Additions
Depreciation
Balance 1 April 2020
Charge for the year
Net Book Value 31 March 2021
Net Book Value 31 March 2020
6. Investments
800 Ordinary shares with British Telecom
Market value £1,238 (2020 £943)
7. Restricted Funds		 Fixtures
& Fittings
£
29,385
-		 Freehold
Properties
£
324,124
-
324,124
-
-
-
324,124
324,124
2021
£
1,738		 Freehold
Properties
£
324,124
-
324,124
-
-
-
324,124
324,124
2021
£
1,738		 Total
£
353,509
-
29,385 353,509
20,255
7,346		 20,255
7,346
27,601 27,601
1,784
9,130		 325,908
333,254
2020
£
1,738
Zakah
Zakah al-Fitr
Ramadan Fund
Funeral appeal
- Transfer to unrestricted funds
Total
8. Unrestricted Funds
Unrestricted funds
- Transfer from unrestricted funds		 Balance 1
April 2020
£
492
-
-
4,573
-
5,065
Balance 1
April 2020
£
384,900
-
384,900		 Incoming
Resources
£
3,335
797
-
-
-
4,132
Incoming
Resources
£
106,485
-
106,485		 Resources
Expended
£
(4,200)
(882)
-
-
-
(5,082)
Resources
Expended
£
(84,022)
-
(84,022)		 Balance 31
March 2021
£
(373)
(85)
-
4,573
-
4,115
Balance 31
March 2021
£
407,363
-
407,363