Charity registration number 285397
INTERNATIONAL MUSLIM MOVEMENT
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
INTERNATIONAL MUSLIM MOVEMENT
LEGAL AND ADMINISTRATIVE INFORMATION
| Trustees | H L Ali |
|---|---|
| S A Q Jilani | |
| M U Hassan | |
| M Khan | |
| Z A Shakoor | |
| Charity number | 285397 |
| Principal address | 12 East Avenue |
| Walthamstow | |
| London | |
| E17 9NG | |
| Independent examiner | Stewart & Partners |
| Kinetic Business Centre | |
| Theobald Street | |
| Borehamwood | |
| Herts | |
| WD6 4PJ | |
| Bankers | Lloyds TSB Plc |
| Walthamstow Branch | |
| 180 - 182 High Street | |
| Walthamstow | |
| London | |
| E17 7JH |
INTERNATIONAL MUSLIM MOVEMENT
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 |
| Independent examiner's report | 2 |
| Statement of financial activities | 3 |
| Balance sheet | 4 |
| Notes to the financial statements | 5 - 9 |
INTERNATIONAL MUSLIM MOVEMENT
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 MARCH 2022
The trustees present their annual report and financial statements for the year ended 31 March 2022.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's trust deed, 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 2016)
Objectives and activities
The charity's objects are the establishment and support of a school to teach the Islamic faith and further the knowledge of Urdu, Arabic, Persian and English languages. The policies adopted in furtherance of these objects are to run and maintain a school and there has been no change in these during the year.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
The charity continues the promotion and teaching of Muslim culture from the building in the London Borough of Waltham Forest which was purchased by the charity and converted into a religious school and mosque
Financial review
The attached financial statements show that the charity has maintained satisfactory income and reserves during the year.
The school continues to extend its premises by building a new third floor and a basement. the expenditure incurred during the year is shown in the note tangible fixed assets as additions to land and buildings. The trustees are confident that the work on the new building will be finished in the near future.
It is the policy of the charity to maintain throughout the year its unrestricted funds at a level which covers its ongoing charitable and administration expenditure.
The trustees believe that by maintaining reserves at current levels there are sufficient resources in event of adverse conditions, however, they regularly review risks that may be faced by the charity.
Structure, governance and management
The charity was established by a charitable trust deed on 14 August 1982. The charity's objects are the establishment and support of a school to teach the Islamic faith and further the knowledge of Urdu, Arabic, Persian and English languages.
The trustees who served during the year and up to the date of signature of the financial statements were: H L Ali
S A Q Jilani M U Hassan M Khan Z A Shakoor
The trustees' report was approved by the Board of Trustees.
M Khan
Trustee Dated: 16 February 2023
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INTERNATIONAL MUSLIM MOVEMENT
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF INTERNATIONAL MUSLIM MOVEMENT
I report to the trustees on my examination of the financial statements of International Muslim Movement (the charity) for the year ended 31 March 2022.
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 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) 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.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no 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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1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
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2 the financial statements do not accord with those records; or
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3 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 financial statements to be reached.
Simon A Lever B.Com, FCA Stewart & Partners Chartered Accountants
Kinetic Business Centre Theobald Street Herts WD6 4PJ
Dated: 16 February 2023
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INTERNATIONAL MUSLIM MOVEMENT
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2022
| **Unrestricted ** | Unrestricted | ||||
|---|---|---|---|---|---|
| funds | funds | ||||
| 2022 | 2021 | ||||
| Notes | £ | £ | |||
| Income from: | |||||
| Incoming voluntary resources | 3 | 84,551 | 35,660 | ||
| Expenditure on: | |||||
| Charitable activities | 60,698 | 40,414 | |||
| Net income/(expenditure) for the year/ | |||||
| Net movement in funds | 23,853 | (4,754) | |||
| Fund balances at | 1 April 2021 | 878,002 | 882,756 | ||
| Fund balances at 31 March 2022 | 901,855 | 878,002 |
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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INTERNATIONAL MUSLIM MOVEMENT
BALANCE SHEET
AS AT 31 MARCH 2022
| Notes Fixed assets Tangible assets 7 Current assets Debtors 8 Cash at bank and in hand Creditors: amounts falling due within one year 9 Net current assets Total assets less current liabilities Income funds Unrestricted funds |
2022 £ 45 125,346 125,391 (6,105) |
£ 782,569 119,286 901,855 901,855 901,855 |
2021 £ - 100,427 100,427 (4,363) |
£ 781,938 96,064 |
|---|---|---|---|---|
| 878,002 | ||||
| 878,002 | ||||
| 878,002 |
The financial statements were approved by the Trustees on 16 February 2023
M Khan Trustee
Z A Shakoor Trustee
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INTERNATIONAL MUSLIM MOVEMENT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
1 Accounting policies
Charity information
International Muslim Movement is a charitable trust.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's trust deed, 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 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements 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 financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
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 financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.4 Incoming resources
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
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INTERNATIONAL MUSLIM MOVEMENT
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
1 Accounting policies
(Continued)
1.5 Resources expended
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Expenditure on the management and administration of the charity includes all expenditure not directly related to charitable activities.
1.6 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 Nil Fixtures, fittings & equipment 25% on the reducing annual balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
1.7 Impairment of fixed assets
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.8 Cash and cash equivalents
Cash and cash equivalents 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.
1.9 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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INTERNATIONAL MUSLIM MOVEMENT
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
1 Accounting policies
(Continued)
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
1.10 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.
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.
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INTERNATIONAL MUSLIM MOVEMENT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
3 Incoming voluntary resources
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2022 | 2021 | |
| £ | £ | |
| Donations and gifts | 84,551 | 35,660 |
4 Trustees
None of the trustees (or any persons connected with them) received any remuneration during the year,
5 Employees
Number of employees
The average monthly number of employees during the year was:
| 2022 | 2021 | |||
|---|---|---|---|---|
| Number | Number | |||
| Teaching | 3 | 3 | ||
| Employment costs | 2022 | 2021 | ||
| £ | £ | |||
| Wages and salaries | 22,320 | 23,760 |
There were no employees whose annual remuneration was £60,000 or more.
6 Taxation
As a registered charity there is no liability to tax.
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INTERNATIONAL MUSLIM MOVEMENT
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
| 7 Tangible fixed assets Cost At 1 April 2021 Additions At 31 March 2022 Depreciation and impairment At 1 April 2021 Depreciation charged in the year At 31 March 2022 Carrying amount At 31 March 2022 At 31 March 2021 |
Land and buildings Fixtures, fittings & equipment £ £ 776,361 24,682 - 2,701 776,361 27,383 - 19,106 - 2,069 - 21,175 776,361 6,208 776,361 5,577 |
Total £ 801,043 2,701 |
|---|---|---|
| 803,744 | ||
| 19,106 2,069 |
||
| 21,175 | ||
| 782,569 | ||
| 781,938 |
In the opinion of the trustees the book value of the freehold property is lower than its current market value.
| 8 Debtors Amounts falling due within one year: Prepayments and accrued income 9 Creditors: amounts falling due within one year Other creditors Accruals and deferred income |
2022 £ 45 2022 £ 3,572 2,533 6,105 |
2021 £ - |
|---|---|---|
| 2021 £ 2,072 2,291 |
||
| 4,363 |
10 Related party transactions
There were no disclosable related party transactions during the year (2021 - none).
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