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2021-12-31-accounts

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www.
hujjat .org
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Husaini Shia Islamic Centre,
Wood Lane, Stanmore, HA7 4LQ, UK
T: +44 (0)20 8954 6247
E: admin@hujjat.org
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THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON

Registered Charity in UK No. 288356

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 DECEMBER 2021

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THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON

CONTENTS

CONTENTS
Page no
Legal and Administrative Details 3
President's Statement 4
Trustees' Report 5 - 10
Independent Auditors' Report 11 - 12
Statement of Financial Activities 13
Balance Sheet 14
Statement of cash flows 15
Notes to the Financial Statements 16 - 24

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THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON

LEGAL & ADMINISTRATIVE DETAILS

Status

The Khoja Shia Ithnaasheri Muslim Community of London is an Unincorporated charitable body governed by its constitution and is constituted as a charitable trust. The constitution was adopted on 2 October 1983 and as amended on 26 March 2017 and on 20 September 2020.

Charity Number 288356

Registered Office Husseini Islamic Centre Wood Lane, Stanmore Middx HA7 4LQ

Other Names Husseini Islamic Centre Stanmore Mosque

Trustees

Abdul Hamid Mohamed Taqi President & Custodian Trustee (resigned 26 October 2021) Sibtain Allibhai President & Custodian Trustee (appointed 6 December 2021) Moshin Kassam Hon. Secretary & Custodian Trustee Mohamedasif Riyaz Rajabali Asst. Secretary Aqeel Merchant Hon. Treasurer & Custodian Trustee (resigned 7 March 2022) Bashir Pribhai Hon. Treasurer & Custodian Trustee (appointed 6 March 2022) Muntazir Aunali Kanji Asst. Treasurer (resigned 28 March 2022) Nasima Azim Karim Chairlady Abbas Ismail Committee Member Muhammad Datoo Committee Member Mumtaz Merali Committee Member Dr Mohammed Asad Abdullah Committee Member Dr Samana Fazel Committee Member Imran Shirazali Mohamedali Gulamhusein Committee Member Shiraz Jamal Committee Member

Bankers Habib Bank AG Zurich Limited Barclays Bank Plc

Auditors Gerald Edelman Cornhill 73 Cornhill London EC3V 3QQ

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THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON

PRESIDENT’S STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2021

Bismillahirrahmanirahim – I begin in the name of Allah SWT , The Most Merciful , The Most Beneficent.

We are delighted to present to you the audited financial statements for The KSIMC of London for the year ended 31 December 2021.

The KSIMC of London is fortunate and acknowledges the immense contribution of the dedicated volunteers to provide selfless services to all our members and non members alike. Even during these challenging times our dedicated volunteers have kept activities of the centre ongoing seven days a week catering for members of all ages and genders alike.

Our organisation is a fully registered charity relying heavily on the generous and magnanimous donations from our members and their families. Everyone in some way or the other is a contributor to our centre and this is how we are able to cater for services we provide on a daily basis to infants, children , youths , adults and seniors. Our activities include Religious Education, Marriages, Funerals, Sporting events, Secular education, Tuition centre to name but a few. Both genders benefit from these facilities. This also creates a great community atmosphere in the centre and helps bonding and lasting friendship between the members within it.

I am pleased to report that with the blessings of Allah (swt) and the support of our members in April 2022 we have made history by exchanging on Widewater Place Harefield – Hujjat Harefield. A 6.3 acre site with 135,000 sq ft of internal space split between 3 buildings with onsite parking of over 500 cars. This is something we have been aspiring for over a decade but not able to. Hujjat Harefield inshallah will serve many generations to come and will be an icon for our community globally.

The highlight of this term has been the reopening of the centre for temporary use. As our centre is going through an insurance claim which has taken longer than expected, once all the insurance survey were completed we were able to reopen the centre’s ground floor for our use. This has helped our members to get back and as covid restrictions are being eased we have been able to resume our live programs. We are actively working with the insurance company to reach a settlement and start complete refurbishment of our centre.

The Covid 19 pandemic has affected many lives and businesses across the world and our charity and members are no exception. Since last year we have lost a number of our members and their relatives to this pandemic. I request you all to remember them in your prayers. May Allah SWT grant them a lofty station in Paradise. Ameen

The effect of covid and unavailability of full use of centre has been felt in our finances with a reduction in our unrestricted funds and revenue. In addition, the damage caused to our centre by the storm has increased the financial burden on the Jamaat as not all refurbishment costs will be paid by the insurers. I humbly request you to continue to support us by your generous donations and volunteer work for the community.

We have general body elections due in May 2022 and I pray that members who can give time with dedication will come forward and lead this esteemed organisation. We have to complete on Hujjat Harefield and also refurbish the centre besides running day to day affairs. This will require a competent team and I am confident that fourteen such from our members will come forward – Inshallah.

I would like to thank the members of my executive committee who have worked tirelessly during the past two years through these most challenging times for our community. I would also like to say a big thank you to all Buju’s and volunteers who have helped serve this community for the sole pleasure of Allah (swt). May Allah bless you all. Finally to our members, please forgive me and my team for any short comings and I pray that we continue to work together and stay united.

Wasalaam

Sibtain Alibhai President The KSIMC of London

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THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees are pleased to present their annual report and the audited financial statements for the year ended 31 December 2021. The legal and administrative information appearing on page 3 forms a part of this report.

Structure, governance and management

The Charity is an unincorporated Charity governed by its Constitution adopted on 2 October 1983 and as amended on 26 March 2017 and on 20 September 2020, with periodic amendments to the Constitution as disclosed in the Minutes of the relevant general meetings.

In accordance with the provisions in the Constitution, the Trustees are elected every two years. The elections normally take place two weeks prior to the relevant Annual General Meeting of the Charity except in cases where elections are held to fill a vacancy when the elections are held at a Special or Extraordinary General Meeting. Due to the outbreak of the Covid19 pandemic in 2020 both the Annual General Meeting and the Elections of the Trustees were delayed until September 2020. On 6 September 2020, by the grace of Allah (swt) a new Excutive Committee was elected and took over the office on 20 September 2020.

The Charity is managed by the office bearers and the Executive Committee whose roles are clearly defined in the constitution, and who met (virtually) at least 10 times a year.

The Trustees receive information about their role and responsibilities from a range of sources, including the Charity Commission and professional advisors to the Charity. Arrangements are in place for the induction of all newly appointed Trustees who receive a formal induction from the President of the Charity relating to their role and responsibilities as a trustee, prior to their first meeting.

The Charity, although independent, is involved with a wider network of charities. It is a member of a regional council, The Council of European Jamaats (CoEJ) which represents The KSIMC of London 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.

Conflicts of Interest

Trustees and staff are expected to conduct the business of the Charity with integrity at all times. A Conflict of Interest Policy is in place to ensure that there is no personal gain from the Charity's work. All staff and Trustees have to declare their interests. At each Executive Committee meeting the Trustees are expected to inform those present to any interests, and may be asked not to participate during the relevant decision-making process. Any relevant gift or hospitality received by Trustees and staff is also reported to the Executive Committee.

Public Benefit Statement

The Charity is a Public Benefit Entity.

The Trustees have referred to the guidance in the Charity Commission's general guidance on Public Benefit and have complied with the duty in section 17 of the Charities Act 2011 when reviewing the aims and objectives that have been set, and in planning the Charity's future activities.

Object, objectives and activities for the public benefit

The objects for which the Charity has been established is to promote and advance the Islamic Religion in accordance with the principles of the Shia Ithna-Asheri faith and to provide for the relief of poverty among Muslims of the Shia Ithna-Asheri faith.

The Charity through its Executive Committee has the power:

(a) To encourage the practice of the Islamic Religion as taught by the Shia Ithna-Asheri faith in the City of London, across the UK and throughout the whole world.

(b) To spread knowledge of the Islamic Religion as taught by the Shia Ithna-Asheri faith with a view to gaining adherents.

(c) To secure the provision of Mosques and Imambara and to provide for the upkeep restoration and repair of their fabric and the maintenance of the services therein and to supply and embellish the furniture and fittings of such Mosques and Imambara.

(d) To hold and arrange Islamic Religious services and ceremonies and in particular the performance of nikah.

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THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

(e) To provide religious education in the principles of the Islamic faith as taught by the Shia Ithna-Asheri faith.

(f) To pay or assist in paying the funeral expenses of deceased Muslims who have died in straitened circumstances.

(g) To establish, take over, maintain, endow or otherwise assist in the formation of religious or educational establishments where the Islamic Religion is taught in accordance with the principles laid down by the Shia Ithnaasheri faith so long as the objects of such establishments are exclusively charitable.

(h) To receive donations whether impressed with any special trust (provided such trust is exclusively charitable) or not to be held and applied for the promotion of the Charity.

As a result of the general guidance on public benefit, the Trustees have assessed the objectives as follows:

Achievements and Performance

In order to meet the objectives, the Trustees carried out several activities and are pleased to report the following achievements:

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THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

These achievements would not have been made without both the commitment and dedication of volunteers and the generous donations made by both members and non members of the community. Dedicated volunteers have contributed on average over 120 hours per week to running the services and donations have been received without the use of professional fundraisers or being bound by any scheme.

Investment Policy

The funds of the Charity that are not required for immediate application may be invested in such manner as the Trustees, from time to time, may approve.

During the year ended 31 December 2020 the funds were invested in various bank accounts and in investment property.

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.

Risk Management

The Trustees recognise that effective risk management is essential in achieving the Charity’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 in risk management, to ensure it remains fit for purpose. The Charity will formalise the risk management and create a risk register which will be reviewed on regular basis.

Policy on reserves

To safeguard the core activities in periods of fluctuating income, where possible, the Trustees have determined to establish free reserves (i.e. those unrestricted reserves not tied up in tangible fixed assets) at a level sufficient to meet the Charity’s requirements for a minimum period of 3 months of unrestricted expenditure in any given year equating to approximately £300,000.

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THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

The level of General Funds as at 31 December 2021 is £919,103 (2020 - ££923,835) of which £636,598 (2020 - £654,125) is represented by tangible fixed assets. The free reserves of the Charity therefore amount to £282,505 (2020 - £269,710) – the bulk of which is cash in the bank. As at the year end the Charity also had £589,012 (2020 - £584,505), mainly in cash, as funds designated for specific use as shown in note 11 and 13 to the accounts.

As at 31 December 2021 the Charity's Restricted funds were £8,532,594 (2020 - £8,552,449) of which £7,882,259 (2020 - £7,882,259) is represented by fixed assets and balance of £649,980 (2020 - £670,190) in cash is represented by various funds as shown in note 13 to the accounts.

.

Financial review

The results of the Charity’s activities are shown on pages 11 to 21 of the financial statements.

The Charity’s main objective is to promote and advance the Islamic Religion in accordance with the principles of the Shia Itna-Asheri faith. All the activities including the divisions under its control namely, The Islamic Montesorri School, Shia Ithnaasheri Madressa, Hujjat Saturday Workshop, Husaini Tuition Centre, Islamic Bookshop and the Burial Fund contribute in achieving this main objective. All the income from these divisions and the donations received from the members and well-wishers of the Charity assist the Charity in meeting its main charitable objective of providing services to the community at large.

Income relating to unrestricted and restricted funds decreased by £21,487 (2020 - £99,967 ). Expenditure on these activities also decreased by £55,346 (2020 - increased by £16,074). The decrease in income mainly relates to a reduction in General Donation, income from activities of the centre and Montessori tuition fees all as a direct result of the effect of the pandemic.

Overall, net income from unrestricted and designated activities is £12,762 (net expenditure in 2020 - £55,775), and net expenditure from restricted funds is £20,211 (2020 - £14,467). It is the intention of the Trustees to utilise the carry forward surpluses in unrestricted fund for the benefit of the members and fund future projects.

The start of 2020 has been an exceptional year due to COVID-19. Our community has been involved both individually and collectively in a number of charitable activities. Unfortunately our mosque has been closed for majority of the year. This has impacted on donations although there has been an increase in online donations and there is sufficient reserves for operational cashflows to take us through this difficult time. However we will need donations form members for repairs and renewal works to the centre to th extent not covered by the insurance proceeds.

Future Plans

In addition to the objectives outlined above, the Charity has additional objectives over the forthcoming 12 month period:

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THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Statement of Trustees’ responsibilities

The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

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THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity 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 Constitution. 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.

The Trustees are responsible for the maintenance and integrity of the financial and other information included on the Charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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 2020 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.

Auditors

Gerald Edelman were appointed the new auditors of the Charity at the last AGM held in June 2021 by a general body resolution.

Signed on behalf of the Trustees on 10 May 2022

Moshin Kassam Hon. Secretary

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON

Opinion

We have audited the financial statements of The Khoja Shia Ithnaasheri Muslim Community of London for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, Statement of Cash flows, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements 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, 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

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 trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identity such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

In the light of the knowledge and understanding of the Charity and environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Annual Report.

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON

Responsibilities of the trustees

As explained more fully in the trustees' responsibilities statement set out on Page 7 , 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 they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the Charity's ability 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 liquidate the Charity or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

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:

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the Charity's trustees, as a body, in accordance with section 144 of the Charities Act 2011 and the regulations made under section 154 of that Act. 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 auditor's 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's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Gerald Edelman Statutory Auditor

73 Cornhill London EC3V 3QQ Date: 10 May 2022

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THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021

Notes
Income
Income from generated funds
Donations
2
Subscriptions
Activities for generating funds
Sundry income
3
Investment income
4
Income from charitable activities
Activities of the centre
Burial facilities
Education
Total income
Expenditure on charitable activities
Religious and spiritual activities
Secular education
Burial facilities
Youth, children and volunteers
Relief of the needy, poor, orphaned and widowed
Nyaz
Governance
Total expenditure
5
Net income / (expenditure)
Extraordinary item
Funds brought forward at the start of the year
Funds carried forward at the end of the year
11,12
Costs of generating funds
Net movements in funds		 Unrestricted
Funds
£
413,505
309,840
99,288
71,830
400
381,575
227,383
1,503,821
19,930
356,822
259,825
651,738
7,979
-
126,196
68,569
1,491,059
12,762
-
12,762
1,495,354
1,508,116
1,508,115		 Restricted
Funds
£
404,960
-
-
-
100
-
405,060
-
488
-
9,843
234
414,706
-
-
425,271
(20,211)
-
(20,211)
8,552,450
8,532,239
8,532,239		 Total Funds
2021
£
818,465
309,840
99,288
71,830
400
381,675
227,383
1,908,881
19,930
357,310
259,825
661,581
8,213
414,706
126,196
68,569
1,916,330
(7,449)
-
(7,449)
10,047,808
10,040,359		 Total Funds
2020
£
763,861
333,235
106,762
61,475
32,011
334,264
298,760
1,930,368
33,246
312,385
274,007
664,791
19,845
352,925
282,976
31,501
1,971,676
(41,308)
-
(41,308)
10,089,116
10,047,808

There are no other recognised gains and losses other than those passing through the Statement of Financial Activities. All income and expenditure derive from continuing activities.

The notes on pages 16 to 23 form a part of these financial statements.

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THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON

BALANCE SHEET AS AT 31 DECEMBER 2021

Note
Fixed assets
Tangible assets
7
Total fixed assets
Current assets
Stock
Debtors
8
Cash at bank and in hand
Debtors: Amounts falling due
after more than one year
9
Total current assets
Liabilities
Creditors: amounts falling due
within one year
10
Creditors: amounts falling due
after more than one year
Net current assets
Net assets
The funds of the charity
Unrestricted funds
11
Designated funds
General funds
Restricted funds
12
Revaluation reserve
Other
Total charity funds
13		 2021
£
48,110
69,196
1,629,083
145,484
1,891,873
(275,113)
(100,000)
589,012
919,103
2,887,720
5,644,519		 2021
2020
£
£
8,523,594
8,523,594
51,620
190,027
1,418,322
145,484
1,805,453
(199,491)
(100,000)
1,516,760
10,040,354
571,524
923,835
1,508,115
2,887,720
5,664,729
8,532,239
10,040,354		 2020
£
8,541,846
8,541,846
1,505,962
10,047,808
1,495,359
8,552,449
10,047,808

The notes on pages 16 to 23 form a part of these financial statements

Approved for issue by the board of trustees and signed on its behalf by:

Sibtain Alibhai - (President)

Bashir Pribhai - (Honorary Treasurer)

Date: 10 May 2022

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THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021

Note
Cash used in operating activities
Net movement in funds
Add back depreciation charge
Less interest income
Increase in stock
Increase in debtors
Increase in creditors
Net cash generated from / (used in) operating activities
14
Cashflows from investing activities
Interest income
Sale of tangible fixed assets
Purchase of tangible fixed assets
Net cash used in investing activities
Decrease in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2021
£
(7,449)
45,651
(2,344)
3,505
120,831
75,622
235,816
2,344
-
(27,399)
(25,055)
210,761
1,418,322
1,629,083		 2020
£
(41,308)
70,057
(3,667)
202
27,275
22,692
75,251
3,667
-
(38,570)
(34,903)
40,348
1,377,974
1,418,322

The notes on pages 16 to 23 form a part of these financial statements

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THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting Policies

Charity Information

The legal and administrative information appearing on page 3 forms a part of these notes.

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Basis of preparation

The financial statements have been prepared 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) (effective 1 January 2015) - (Charities SORP (FRS 102)) and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

Income

These comprise income which is accounted for in the period in which it is received. Grants and Gift Aid are recognised when receivable, Government Grants and subscriptions for membership are recognised when received. Gift Aid received is treated as unrestricted income and utilised against the support costs of the h it

All income is included gross and related expenditure is included as expenditure.

Investment income is included in the accounts on an accruals basis.

Deferred Income

Income is recognised in the period to which it relates.

Expenditure

Costs of generating funds are those costs incurred in furthering the name and objects of the charity.

Governance comprises the costs of compliance with constitutional and statutory requirements and costs related to the strategic management of the charity.

Support costs are costs which are common to a number of activities and are charged to activities on the basis of a proportion of the use of the resource to the charitable activity.

In accordance with the Charities SORP (FRS 102), the general volunteer time of members and trustees is not recognised. The Trustees’ annual report includes more information about their contribution).

Creditors and liabilities

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.

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.

Pensions

Employees of the Charity are entitled to join a defined contribution. The charity contribution is restricted to the contributions disclosed in note 5c. There were no outstanding contributions at the year end. The costs of the defined contribution scheme are included within support costs.

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THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting Policies (continued)

Tangible Fixed Assets and Depreciation

Fixed assets are recorded at cost or, where original cost is not ascertainable, at valuation at the time such assets were first capitalised, less depreciation where appropriate.

Depreciation has been provided at the following rates in order to write down the cost or valuation, less estimated residual value, of all tangible fixed assets, over their expected useful lives:

Building over 50 years on a Straight Line Basis Equipment over 4 years on a Straight Line basis Furniture and Fixtures between 3 and 7 years on a Straight Line basis Motor Vehicle over 5 years on a Straight Line basis

The Land and other religious artefacts have not been depreciated in view of their nature. The freehold property is recognised at a valuation based on the information available to the Trustees and in their opinions. Professional valuations are carried out at regular intervals. The Trustees do not consider that it is economic to carry out professional revaluations each year.

Investment Property

Investment property is included in the Balance Sheet at open market value. The value is generally established by reference to independent 3rd party valuations obtained by the Trustees.

Taxation

No provision has been made for corporation tax or deferred tax as the charity is a registered charity and is therefore exempt. As the charity is not VAT registered, its expenditure for the year includes non recoverable VAT incurred.

Stock

Stock consists of books in the bookshop. The stock is valued at lower of cost and net realisable value.

Funds

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objects of the charity and which have not been designated for other purposes. Investment income and gains are allocated to the unrestricted funds.

Designated funds comprise funds which have been set aside by the Trustees for particular purposes. The aim and use of the designated funds is set out in note 11.

The restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund, if appropriate. The aim and use of each restricted fund is set out in note 12 of the financial statements. Transfers are made to/from restricted funds on approval by the Trustees when required to do so in order to enable the restricted fund to carry out its activities.

17 of 24

THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

2
Donations
Unrestricted
Funds
£
Chawda Masumin, Jula and Imam
Zamin
31,670
General donations
78,676
Nyaz
210,007
-
Relief, religious and spiritual
activities
9,904
83,248
413,505
3
Activities for generating funds
Unrestricted
Funds
£
Parking
2,230
Announcement and adverts
4,416
Directory and calendar
4,693
Other Fundraising
2,516
Furlough Grants
29,083
Islamic bookshop
56,350
99,288
4
Investment income
Unrestricted
Funds
£
Rent received
69,486
Interest received
2,344
71,830
Sadka, Welfare and Bewa Yatim
Gift Aid		 Restricted
Funds
£
-
77,658
-
121,937
205,365
-
404,960
Restricted
Funds
£
-
-
-
-
-
-
Restricted
Funds
£
-
-
-		 Total
2021
£
31,670
156,334
210,007
121,937
215,269
83,248
818,465
Total
2021
£
2,230
4,416
4,693
2,516
29,083
56,350
99,288
Total
2021
£
69,486
2,344
71,830		 Total
2020
£
43,937
160,377
194,302
75,388
212,030
77,827
763,861
Total
2020
£
3,351
4,380
5,503
-
38,112
55,416
106,762
Total
2020
£
57,808
3,667
61,475

18 of 24

THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

5a
Total Expenditure
Costs of Generating Funds
Charitable Activities
Religious and spiritual activities
Secular education
Burial
Youth, children and volunteers
Relief of the poor, orphaned and widowed
Food & Nyaz
Governance (see Note 5d)
5b Support costs
Motor vehicles expenditure
Car parking
Printing Postage Stationery
Telephone and internet
Insurances
Accountancy fees
Light & Heat
Rates & Water
Salaries and social security
Cleaning & Refuse Collection
Repairs & Maintenance
IT, Audio and Visual
Security expenses
Sundry Expenses
Mental Health
Education and Training
Bank & card charges
Seniors Costs
Depreciation
5c
Staff costs
Staff costs comprise:
Wages and salaries
Social security costs
Pension contributions
Full time employees
Part time employees
Staff numbers as analysed by category:
Charitable activities
Governance
The average number of employees during the		 Direct
Support
Costs
Costs
£
£
-
19,930
257,933
99,377
187,561
72,264
477,578
184,003
8,213
-
414,706
-
91,097
35,099
67,310
1,259
1,504,398
411,932
-
year was as follows:		 Total
2021
£
19,930
357,310
259,825
661,581
8,213
414,706
126,196
68,569
1,916,330
2021
£
6,642
-
4,351
7,417
13,408
593
20,755
4,748
135,628
10,650
91,596
38,163
-
10,591
2,340
3,405
17,906
350
43,389
411,932
2021
£
321,372
21,048
4,436
346,856
11
12
23
18
5
23		 Total
2020
£
33,246
312,385
274,007
664,791
19,845
352,925
282,976
31,501
1,971,676
2020
£
9,050
10,392
5,573
16,201
15,009
-
32,797
3,326
181,447
16,129
64,063
31,093
2,314
9,714
-
-
11,803
2,550
65,216
476,677
2020
£
361,695
24,749
5,477
391,921
15
28
43
38
5
43

19 of 24

THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

5d Governance costs

Auditors remuneration
Legal and professional fees
Subscriptions
Share of support costs		 2021
£
5,020
59,812
2,478
1,259
68,569		 2020
£
3,580
23,881
2,201
1,839
31,501

6 Trustees

No Trustee received any remuneration from the Charity for performing their duties as a trustee (2020 - £Nil). During the year a total of no money was paid to a Trustee (2020 £Nil), during their tenure as a Trustee, as remuneration for support services other than performing their duties as a Trustee.

No Trustees received reimbursement for costs for attending meetings and travelling expenses during the year (2019 - £Nil).

7 Tangible Fixed Assets

Cost or Valuation
At 1 January 2021
Additions
Disposals
At 31 December 2021
Depreciation
At 1 January 2021
Charge for the year
Disposals
At 31 December 2021
Net Book Value
At 31 December 2021
At 31 December 2020		 Freehold
Property
£
7,000,000
-
-
7,000,000
140,000
20,000
-
160,000
6,840,000
6,860,000		 Investment
Property
£
1,625,000
-
-
1,625,000
-
-
-
-
1,625,000
1,625,000		 Equipment
£
252,303
14,399
-
266,702
215,614
18,357
-
233,971
32,731
36,689		 Furniture &
Fittings
£
188,545
13,000
-
201,545
170,765
4,917
-
175,682
25,863
17,780		 Motor
Vehicles
£
87,621
87,621
85,244
2,377
87,621
-
2,377		 Total
£
9,153,469
27,399
-
9,180,868
611,623
45,651
-
657,274
8,523,594
8,541,846

The freehold property and investment property were revalued at market value by the Trustees in a prior period. The investment property has been valued as at 31 December 2016 at £1.2 million by a Chartered Surveyor, Roger Lumby, Penn Court, Church Road, Penn, High Wycombe HP10 8NU. The Trustees appraised the value of the freehold property as at 31 December 2018 based on guidance from an independent 3rd party and concluded that the value of the freehold property is fairly stated. The historical cost of the freehold property is £4,889,237 and the investment property is £423,043. In October 2019 a 3 bedroom flat in a gated development was purchased for £425,000.

8
Debtors
Prepayments and accrued income
Other debtors
9
Debtors: Amounts falling due after more than one year
Hujjat Housing Scheme		 2021
£
62,248
6,948
69,196
2021
£
145,484		 2020
£
83,258
106,769
190,027
2020
£
145,484

The amount is held in trust by two ex-trustees to facilitate the Hujjat Housing Scheme (HHS). The money is used as a guarantee for first time buyers taking out a Springboard mortgage with Barclays Bank.

10a Creditors: Amounts falling due within one year
Trade creditors
Accruals and deferred income (see Note 10b for deferred income breakdown)		 2021
£
24,974
250,139
275,113		 2020
£
10,440
189,051
199,491

20 of 24

THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

10b Deferred income
At 1 January
Released to income
Deferred in year
At 31 December		 2021
£
35,044
(35,044)
74,495
74,495		 2020
£
79,580
(79,580)
35,044
35,044

Deferred income at the year end relates to education fees and subscriptions paid in advance

11 Unrestricted Funds

Unrestricted Funds
Designated fund
Burial
Secular Education
Religious Education
Seniors Activities
Al Haadi
Other
General fund		 At
1 January
2020
£
364,954
32,283
154,246
15,534
3,159
1,346
571,522
923,832
1,495,354		 Income
£
209,558
171,493
78,977
7,616
4,719
9,904
482,267
1,023,092
1,505,359		 Expenditure
£
(165,475)
(187,561)
(87,622)
(5,004)
(6,077)
(13,038)
(464,777)
(1,027,821)
(1,492,598)		 At
31 December
2020
£
409,037
16,215
145,601
18,146
1,801
(1,788)
589,012
919,103
1,508,115

Burial fund

Burial fund relates to membership subscriptions for future burial needs.

Secular Education fund

Education fund relates to surplus reserves which the Trustees have designated specifically for future educational uses by Islamic Montessori School and Husaini Tuition Centre.

Religious Education fund

Education fund relates to surplus reserves which the Trustees have designated specifically for future educational uses by Shia Ithnasheri Madressa and Hujjat Saturday Workshop

Seniors Activities fund

Seniors Actvities fund relates to surplus reserves which the Trustees have designated specifically for future uses by the Seniors for their activities

Other fund

Other fund relates funds designated by the Trustees for future use for specific religious activities

21 of 24

THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

12 Restricted Funds

Children gifts
Husaini voluntary corps
Sadka and welfare
Relief and Khums
Bewa and yatim
Welfare Loans
Friday Social
Stanmore Jaffery
Library
Medical
Who is Hussein
Ladies activities
Fountain fund
British Sign Language
Covid Fund
London Community Covid Grant
Harrow Giving Covid Awareness Grant
Lady Zainab Repairs Fund
Hujjat Orphan Burial Fund
Capital (fixed asset) fund
Foundation Fund
Financial Independent scheme
Revaluation reserve		 At
1 January
2021
£
-
742
40,926
75,263
239
8,900
(138)
(120)
657
287
-
1,256
150
1,579
6,377
9,300
3,995
33,416
4,994,539
331,138
156,224
5,664,730
2,887,720
8,552,450		 Income
£
-
-
93,141
205,365
2,996
25,800
1,473
20
66
50
-
-
-
744
-
2,000
73,198
100
-
121
-
405,074
-
405,074		 At
31 December
Expenditure
Transfer
2021
£
£
£
-
-
-
742
(118,821)
15,246
(274,549)
6,079
(2,777)
458
(8,000)
26,700
(234)
1,101
-
(120)
(488)
189
-
353
-
50
-
1,256
-
150
-
1,579
(1,350)
5,771
(9,209)
91
(14)
1,986
-
331,138
408,331
(9,843)
23,673
-
4,994,539
-
(331,138)
121
-
156,224
(425,285)
-
5,644,519
-
-
2,887,720
(425,285)
-
8,532,239

Descriptions of funds

Children gifts - donations given for the benefit of childfren within the community.

Library - funds provided for the provision of Islamic material for use by the membership body.

Husaini Voluntary Corps - donations specifically given for the welfare of the volunteers of the community.

Stanmore Jaffery - comprises funds collected on behalf of and paid to the youth body.

Medical - donations specifically given for medical supplies.

Sadka and welfare - donations collected and to be used for the poor and the needy of the wider community.

Brookwood cemetary - a specific donation made for the future repairs of the cemetary.

Fountain fund - a specific donation given for building a fountain in the centre.

Ladies activities - funds donated for the provision of ladies activities and sports.

Relief and Khums - provision of funds for world relief projects and obligatory religious payments.

Bewa and yatim - donations collected and to be used for the welfare of orphans and widows within the community and abroad Welfare Loans - funds donated for Karz e Hasna for eligible members. Welfare loans are kept separate from welfare grants and their repayments are kept in this fund for future such loans.

British Sign Language - a specific donation given to facilitate members who require sign language.

Covid Fund - provision of funds those affected by the Covid 19 pandemic

London Community Covid Grant - Grant recived to support those affected by the Covid 19 pandemic

Lady Zainab Repairs Fund - Fund set up to for repairs and restoration of the Hussaini Shia Islamic Centre

Hujjat Burial Orphan Fund - Fund set up to assist those who cannot afford the cost of burial

Capital fund - donations given in respect to capital expenditure on buildings.

Foundation fund - life subscriptions given by the members of the community.

Financial Independent scheme - donations for future capital projects.

Revaluation reserve - restricted reserve created on revaluation of the properties.

22 of 24

THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

13 Analysis of Net Assets between Funds

Analysis of Net Assets between Funds
Fund balances at 31 December 2021
represented by:
Total fixed assets
Net current assets
Total net assets		 General
Funds
£
636,598
282,505
919,103		 Designated
Funds
£
4,737
584,275
589,012		 Restricted
Funds
£
7,882,259
649,980
8,532,239		 Total
Funds
£
8,523,594
1,516,760
10,040,354

14 Reconciliation of net movement in funds to net cash flow from operating activities

Reconciliation of net movement in funds to net cash flow from operating activities
Net movement in funds
Add back depreciation charge
Less profit on disposal
Less interest income
Increase in stock
(Increase) / decrease in debtors
(Decrease) / increase in creditors
Net cash generated from / (used in) operating activities		 2,021
£
(7,449)
45,651
-
(2,344)
3,505
120,831
75,622
235,816		 2020
£
(41,308)
70,057
-
(3,667)
-
-
-
25,082

15 Related parties

The Charity, although independent, is involved with a wider network of charities. It is a member of a regional council, The Council of European Jamaats (CoEJ) which represents The KSIMC of London at the global organization, The World Federation of Khoja Shia Ithna-sheri Muslim Communities (WF). Both charities are registered with the Charities Commission in the UK. The World Federation of Khoja Shia Ithna-sheri Muslim Communities represents us when dealing with international work which includes disaster and general reliefs outside of the UK. Certain trustees of The KSIMC of London are also trustees of CoEJ and therefore CoEJ is a related party. £205,365 (2020: £175,630) has been collected on behalf of CoEJ and £334,549 (2020: £163,940) - including £60,000 sadka payments - has been paid out to CoEJ. A balance of £6,079 (2020: £72,086) is held in Restricted Funds on behalf of CoEJ.

In 2018 the KSIMC of London received a £100,000 loan from CoEJ via WF to be used for the Hujjat Housing Scheme (HHS). This loan has no set repayment date and no interest will be charged.

In addition, KSIMC of London provided a loan of £100,000 to Essex Jamaat via CoEJ also in 2018 to build their Islamic centre. This loan was fully repaid to KSIMC of London in 2021.

The KSIMC of London is a community based organisation and we are reliant on members of the community to provide their time to serve as Trustees of the Charity, for which they do not receive any remuneration. We also encourage the use of community members as the source for people, goods and services. As a consequence of the regular turnover of Trustees due to the 2 year term of each Executive Committee, there are occasions where the Charity has employees (in most cases such employment contracts typically pre date and outlast the Trustee’s tenure) and/or procures goods and/or services from individuals who would otherwise be classified as related parties during the tenure of the relevant Trustee. During 2021, any related party employment contracts and contracts to procure goods and/or services were negotiated and managed independent of the relevant Trustee to ensure that such contracts were bona fide and were dealt with independently and at arm’s length. In 2021 the aggregate of payments by the Charity to such related parties totalled £932 (2020: £36,000).

16 Post Balance Sheet Event

In April 2022 KSIMC of London exchanged contracts with the vendor for the acquisition of the Widewater Place Harefield property located at Moorhall Road, Harefield, UB9 6NS. The completion is expected before the end of 2022.

23 of 24

Purpose Relevant trustee 2021

Paid to

£

Employees Masuma Hassan IMS teacher Shaahid Hasan Jaffer

Payments to Trustees
A M KHAKU
Catering
Nasima Karim
Payments to CoEJ
Various Funds
Sadka		 932
932
274,549
60,000
334,549