OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-12-31-accounts

Docusign Envelope ID: ECFF44D4-51A9-42D8-BB91-5997EB9DCB5E

----- Start of picture text -----
www. hujjat .org
----- End of picture text -----

Husaini Shia Islamic Centre, Wood Lane, Stanmore, HA7 4LQ, UK T: +44 (0)20 8954 6247 E: admin@hujjat.org

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 2023

Docusign Envelope ID: ECFF44D4-51A9-42D8-BB91-5997EB9DCB5E

THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON

CONTENTS

CONTENTS
Page no
Legal and Administrative Details 3
President's Statement 4
Trustees' Report 5 - 9
Independent Auditors' Report 10 - 12
Statement of Financial Activities 13
Balance Sheet 14
Statement of cash flows 15
Notes to the Financial Statements 16 - 25

2 of 25

Docusign Envelope ID: ECFF44D4-51A9-42D8-BB91-5997EB9DCB5E

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 Murtaza Gulamhusein President & Custodian Trustee (Elected 02 June 2024) Sajjad Tejani Vice President & Custodian Trustee (Elected 08 May 2022, re-elected 02 June 2024) Bashir Pirbhai Secretary (Elected 02 June 2024) Sukaina Nurmohamed Assistant Secretary (Elected as Committee Member on 08 May 2022 and as Assistant Secretary on 02 June 2024) Arif Punjani Hon. Treasurer & Custodian Trustee (Elected 02 June 2024) Sadikali Premji Asst. Treasurer (Appointed 11 June 2024) Doureine Hiridjee Chairlady & Committee Member (Elected 02 June 2024) Samana Fazel Committee Member (Elected 02 June 2024) Soukeina Premdjee Committee Member (Elected 02 June 2024) Asad Hamir Committee Member (Elected 02 June 2024) Arif Hussein Committee Member (Elected 02 June 2024) Ilyas Govani Committee Member (Elected 02 June 2024) Shiraz Jessa Committee Member (Elected 02 June 2024) Mohammed Ghoghai Committee Member (Elected 02 June 2024) Sibtain Allibhai President & Custodian Trustee (Elected 6 December 2021, re-elected 05 June 2022, term ended 02 June 2024) Mohammed Akil Kanani Hon. Secretary & Custodian Trustee (Elected Committee Member on 17 May 2022 and as Secretary on 18 July 2022, term ended 02 June 2024) Mohamedasif Riyaz Rajabali Asst. Secretary (Re-elected 8 May 2022, resigned 5 January 2023, appinted as Committee Member on 5 January 2023, term ended 02 June 2024) Assad Abdulla Asst. Secretary (Elected as Committee Member on 8 May 2022 and appointed as Asst Sec on 5 January 2023, term ended 02 June 2024) Mushtakali Kassam Hon. Treasurer & Custodian Trustee (Elected 8 May 2022, term ended 02 June 2024) Ali M Ali Asst. Treasurer (Elected 8 May 2022, term ended 02 June 2024) Nasima Azim Karim Chairlady (Re-elected 8 May 2022, term ended 02 June 2024) Tahera Kassam Committee Member (Elected 8 May 2022, term ended 02 June 2024) Dr Ali Abbas R Hasham Committee Member (Elected 8 May 2022, term ended 02 June 2024) Hasnain Mamdani Committee Member (Elected 8 May 2022, term ended 02 June 2024) Salim Hamir Committee Member (Elected 8 May 2022, term ended 02 June 2024)

Bankers Habib Bank AG Zurich Limited Barclays Bank Plc The Co-operative Bank Auditors Gerald Edelman LLP Cornhill 73 Cornhill London EC3V 3QQ

3 of 25

Docusign Envelope ID: ECFF44D4-51A9-42D8-BB91-5997EB9DCB5E

THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON

PRESIDENT’S STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2023

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

We are pleased to provide you with the audited financial statements for The KSIMC of London for the fiscal year ending on December 31, 2023.

The KSIMC of London expresses gratitude for the invaluable contribution of our dedicated volunteers, whose selfless service benefits both members and non-members alike. The Hujjat center's activities operate seven days a week, accommodating individuals of all ages and genders.

As a fully registered UK charity, our organization depends greatly on the generous donations from our members and their families. Every individual contributes in some capacity, enabling us to offer a wide range of services to individuals of all ages and backgrounds on a daily basis, including infants, children, youths, adults, and seniors. Our activities encompass Religious Education, Marriages, Funerals, Sporting events, Secular education, welfare activities, and more. These services benefit both genders and foster a sense of community, fostering strong bonds and lasting friendships among our members.

Following the acquisition of Hujjat Harefield in October 2022, made possible through the blessings of Allah (swt) and the unwavering support of our members worldwide, we have made significant strides toward realizing our vision of a vibrant community hub. Situated on a 6.3-acre site, with a total internal space of 135,000 square feet across three buildings and on-site parking for over 500 cars, Hujjat Harefield is poised to serve generations to come. InshaAllah, it will stand as an emblem of our community's unity and strength on a global scale.

The guidance of our resident Aalim, Sheikh Anwar Jaffar, has been invaluable in providing direction on religious matters for our community. Equally significant is the contribution of our team of female Aalima within the Hidayah team, dedicated to serving the women and girls of our community.

After over two years of negotiations with the insurance company regarding the water damage claim at our Hujjat Stanmore center, we are pleased to report that the claim has finally been processed, and renovation work has commenced. As of the writing of this report, refurbishment is in full swing, and the project is progressing to a high standard. We anticipate completing the works on-site by the summer of 2024. We extend our heartfelt appreciation to all the volunteers who have dedicated their time and effort to make this renovation possible. Throughout the process, we have maintained communication with the council, and they have expressed satisfaction with the progress of the work.

As a result of rising utility expenses and the refurbishment costs, our cash flows have been significantly affected. In order to sustain our services to our members, we earnestly urge everyone to continue contributing from the wealth that Allah has bestowed upon you. Your continued support is crucial for our ongoing operations and community service efforts.

I extend my heartfelt gratitude to the members of my executive committee for their tireless efforts during this period. I also want to express a sincere thank you to all the Buju's and volunteers who have selflessly served our community solely for the pleasure of Allah (swt). May Allah bless each and every one of you. Our volunteers are the lifeblood of this community, and we are deeply appreciative of their invaluable contributions.

Lastly, to our esteemed members, I humbly ask for your forgiveness for any shortcomings from myself and my team. I pray that we may continue to collaborate and remain united in our efforts. May I request a sura e Fateha for all marhumeen, Al Fateha.

Wasalaam

Murtaza Gulamhusein President The KSIMC of London

4 of 25

Docusign Envelope ID: ECFF44D4-51A9-42D8-BB91-5997EB9DCB5E

THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2023

The Trustees are pleased to present their annual report and the audited financial statements for the year ended 31 December 2023. 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. The current executive committee was elected on 8 May 2022.

The Charity is managed by the office bearers and the Executive Committee whose roles are clearly defined in the constitution, and who meet 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.

The following trustees who served during the period to approval of these accounts were:

Murtaza Gulamhusein (elected 2 June 2024) Sajjad Tejani (reelected 2 June 2024) Bashir Pirbhai (elected 2 June 2024) Sukaina Nurmohamed (reelected 2 June 2024) Arif Punjani (elected 2 June 2024) Sadikali Premji (appointed 11 June 2024) Doureine Hiridjee (elected 2 June 2024) Samana Fazel (elected 2 June 2024) Soukeina Premdjee (elected 2 June 2024) Asad Hamir (elected 2 June 2024) Arif Hussein (elected 2 June 2024) Ilyas Govani (elected 2 June 2024) Shiraz Jessa (elected 2 June 2024) Mohammed Ghoghai (elected 2 June 2024) Sibtain Allibhai (term ended 2 June 2024) Mohammed Akil Kanani (term ended 2 June 2024) Mohamedasif Riyaz Rajabali (term ended 2 June 2024) Assad Abdulla (term ended 2 June 2024) Mushtakali Kassam (term ended 2 June 2024) Ali M Ali (term ended 2 June 2024) Nasima Azim Karim (term ended 2 June 2024) Tahera Kassam (term ended 2 June 2024) Dr Ali Abbas R Hasham (term ended 2 June 2024) Hasnain Mamdani (term ended 2 June 2024) Salim Hamir (term ended 2 June 2024)

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.

5 of 25

Docusign Envelope ID: ECFF44D4-51A9-42D8-BB91-5997EB9DCB5E

THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2023

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.

(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:

6 of 25

Docusign Envelope ID: ECFF44D4-51A9-42D8-BB91-5997EB9DCB5E

THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

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 2023 the funds were invested in various bank accounts and in investment properties.

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

The Charity has undertaken a review of the reserves policy having regard for the risk assessment.

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.

The level of General Funds as at 31 December 2023 is £1,244,406 (2022 - £381,516). As at the year end the Charity also had £480,794 (2022 - £677,023), mainly in cash, as funds designated for specific use as shown in note 15 and 16 to the accounts.

As at 31 December 2023 the Charity's Restricted funds were £17,496,281 (2022 - £16,938,133) of which £17,226,808 (2022 - £16,223,787) is represented by fixed assets and balance of £269,473 (2022 - £714,346) in cash is epresented by various funds as shown in note 16 to the accounts.

7 of 25

Docusign Envelope ID: ECFF44D4-51A9-42D8-BB91-5997EB9DCB5E

THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Financial review

The results of the Charity’s activities are shown on pages 13 to 25 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 £3,552,696 to the sum of £7,156,749 (2022 - increased by £8,800,564). Expenditure on these activities also increased by £3,178,814 to £5,931,940 (2022 - increased by £836,796). The decrease in income mainly relates to a decrease in donations as the increase in the previous year related to purchase of Harefield property. The increase in expenditure in the year mainly relates to the refurbishment work carried out at the centre.

Overall, net income from unrestricted activities was £249,665 (2022 - deficit £429,968), and net income from restricted funds is £975,144 (2022 - £8,386,287).

Future Plans

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

8 of 25

Docusign Envelope ID: ECFF44D4-51A9-42D8-BB91-5997EB9DCB5E

THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

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:

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 2023 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

No auditors appointment resolution was proposed at the AGM. The Trustees will either re-appointment the current auditor or appoint a new auditor.

Disclosure of information to auditor

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor are aware of such information.

The Trustees' report was approved and signed on behalf of the Trustees on 14 November 2024

Bashir Pirbhai Hon. Secretary

9 of 25

Docusign Envelope ID: ECFF44D4-51A9-42D8-BB91-5997EB9DCB5E

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 2023 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

In 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 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.

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 Act 2011 requires us to report to you if, in our opinion:

10 of 25

Docusign Envelope ID: ECFF44D4-51A9-42D8-BB91-5997EB9DCB5E

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, 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

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 audit procedures were primarily directed towards testing the accounting systems in operation upon which we have based our assessment of the financial statements for the year ended 31 December 2023.

We planned our audit so that we have a reasonable expectation of detecting material misstatements in the financial statements resulting from irregularities, fraud or non-compliance with law or regulations.

Extent to which the audit was considered capable of detecting irregularities, including fraud

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, our procedures included the following:

Audit response to risks identified

Fraud due to management override

To address the risk of fraud through management bias and override of controls, we:

Irregularities and non-compliance with laws and regulations

In response to the risk of irregularities and non compliance with laws and regulations, we designed procedures which included, but are not limited to:

11 of 25

Docusign Envelope ID: ECFF44D4-51A9-42D8-BB91-5997EB9DCB5E

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

The test nature and other inherent limitations of an audit, together with the inherent limitations of any accounting and internal control system, mean that there is an unavoidable risk that even some material misstatements in respect of irregularities may remain undiscovered even though the audit is properly planned and performed in accordance with ISAs (UK). Furthermore, the more removed that laws and regulations are from financial transactions, the less likely that we would become aware of non-compliance.

Our examination should therefore not be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance that might exist. The responsibility for safeguarding the assets of the charity and for the prevention and detection of fraud, error and non-compliance with law or regulations rests with the trustees.

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 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 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 and the Charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Talha Farrukh FCCA, ACA 73 Cornhill (Senior Statutory Auditor) for and on behalf of London Gerald Edelman LLP EC3V 3QQ Date: 14 November 2024 Chartered Accountant Statutory Auditor

Gerald Edelman LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

12 of 25

Docusign Envelope ID: ECFF44D4-51A9-42D8-BB91-5997EB9DCB5E

THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023

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
Other income
Grant
Insurance claim
Total income
Expenditure
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
Property expenditure and depreciation
Governance
Total expenditure
5
Net income / (expenditure)
Transfer of funds
15, 16
Unrealised gain on revaluation of tangible fixed assets
Net movements in funds
Funds brought forward at the start of the year
Funds carried forward at the end of the year
15, 16
Costs of generating funds
Net movements in funds		 Unrestricted
Funds
£
1,117,099
334,203
106,109
1,969,049
70,280
289,395
433,785
15,660
1,031,528
5,367,108
96,042
779,641
321,980
445,254
36,961
-
353,502
3,016,035
68,028
5,117,443
249,665
416,996
666,661
-
666,661
1,058,539
1,725,200
1,725,200		 Restricted
Funds
£
1,789,641
-
-
-
-
-
-
-
-
1,789,641
-
-
-
-
-
692,305
-
122,192
-
814,497
975,144
(416,996)
558,148
-
558,148
16,938,133
17,496,281
#REF!		 Total Funds
2023
£
2,906,740
334,203
106,109
1,969,049
70,280
289,395
433,785
15,660
1,031,528
7,156,749
96,042
779,641
321,980
445,254
36,961
692,305
353,502
3,138,227
68,028
5,931,940
1,224,809
-
1,224,809
-
1,224,809
17,996,672
19,221,481		 Total Funds
2022
£
9,268,445
319,443
83,730
378,456
58,235
214,505
386,631
-
-
10,709,445
44,467
528,128
267,037
536,839
87,243
292,759
281,739
664,662
50,252
2,753,126
7,956,319
-
7,956,319
-
7,956,319
10,040,353
17,996,672

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 25 form a part of these financial statements.

13 of 25

Docusign Envelope ID: ECFF44D4-51A9-42D8-BB91-5997EB9DCB5E

THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON

BALANCE SHEET AS AT 31 DECEMBER 2023

Note
Fixed assets
Investment properties
7
Investment in subsidiary
8
Property, plant and equipment
9
Total fixed assets
Current assets
Stock
Debtors
10
Cash at bank and in hand
Total current assets
Debtors: Amounts falling due
after more than one year
11
Liabilities
Creditors: amounts falling due
within one year
12
Creditors: Amounts falling due
after more than one year
14
Total net assets
The funds of the charity
Unrestricted funds
15
Designated funds
General funds
Restricted funds
16
Revaluation reserve
Other
Total funds
17		 2023
£
58,189
950,223
1,999,649
3,008,061
79,461
3,087,522
(3,105,267)
(22,741,700)
480,794
1,244,406
2,887,720
14,608,561		 2023
£
1,625,000
4
40,355,922
41,980,926
(22,759,445)
19,221,481
1,725,200
17,496,281
19,221,481		 2022
(as restated)
£
52,322
400,235
3,206,255
3,658,812
73,518
3,732,330
(2,730,018)
(24,494,227)
677,023
381,516
2,887,720
14,050,413		 2022
(as restated)
£
1,625,000
-
39,863,587
41,488,587
(23,491,915)
17,996,672
1,058,539
16,938,133
17,996,672

The notes on pages 16 to 25 form a part of these financial statements

Approved for issue by the board of trustees on and signed on its behalf by: 14 November 2024

Murtaza Gulamhusein - (President)

Arif Punjani - (Honorary Treasurer)

14 of 25

Docusign Envelope ID: ECFF44D4-51A9-42D8-BB91-5997EB9DCB5E

THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023

Note
Cash used in operating activities
Net movement in funds
Add back depreciation charge
Add back interest paid
Less interest income
Increase in stock
Increase in debtors
Decrease / Increase in creditors
Net cash generated from / (used in) operating activities
Cashflows from investing activities
Interest income
Interest paid
Investment in subsidiary
Purchase of property, plant and equipment
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		 2023
£
1,224,809
172,983
1,121,200
(28,981)
(5,867)
(555,931)
(1,377,278)
550,935
28,981
(1,121,200)
(4)
(665,318)
(1,757,541)
(1,206,606)
3,206,255
1,999,649		 2022
£
7,956,319
41,694
235,616
(5,887)
(4,213)
(259,073)
26,849,132
34,813,588
5,887
(235,616)
-
(33,006,687)
(33,236,416)
1,577,172
1,629,083
3,206,255

The notes on pages 16 to 25 form a part of these financial statements

15 of 25

Docusign Envelope ID: ECFF44D4-51A9-42D8-BB91-5997EB9DCB5E

THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting Policies

General Information and basis of preparation

The Khoja Shia Ithnaasheri Muslim Community of London is a registered charity (Charity No 288356) in England and Wales. The nature of the chairty's operations and activities are reported in the Trustee's Report. The legal and administrative information appearing on page 3 forms a part of these notes.

Basis of preparation

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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 lreland (FRS 102) (effective 1 January 2019)', and the Charities Act 2011 . The financial statements have been prepared under the historical cost convention.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and are rounded to the nearest £1.

Income recognition

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after certain conditions have been met, the amount can measured reliably and it is probable that the income will be recieved.

For restricted donations to be recognised the charity will have been notified of the amounts and the settlement date In writing. If there are conditions attached to the donation and thls requires a level of performance before entitlement can be obtained then income Is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and It is probable that they will be fulfilled.

Voluntary income is included in the Statement of Financial Activities upon receipt. Income from charitable activities (including membership income) is recognised as income when receivable, except when incapable of financial measurement.

Investment income is earned through renting of charity's assets. It is recorded on accruals basis.

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 charity.

All income is included net of VAT and related expenditure includes any VAT which is not recoverable.

Taxation

No provision has been made for corporation tax or deferred tax as the charity is a registered charity and is therefore exempt within the meaning of schedule 3 of the Charities Act 2011 and therefore is exempt from taxation.

Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.

Expenditure on charitable activities comprise the resources applied by the charity in meeting its charitable objectives. Such costs include the direct costs of the charitable activities together with those support costs incurred that enable these activities to be undertaken.

Support costs allocation

Support costs are those that assist the work of the charity but do not directly represent charitable activities and Include office costs, governance costs, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity. Where support costs cannot be directly attributed to particular headings they have been allocated to the cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources. The support costs have been allocated to the charity's activities based on the number of staff employed in each area and the proportionate use of resources. The analysis of these costs is included in note 5.

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.

16 of 25

Docusign Envelope ID: ECFF44D4-51A9-42D8-BB91-5997EB9DCB5E

THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting Policies (continued)

Pension

Employees of the charity are entitled to join a defined contribution scheme unless they have exercised their right to opt out of the scheme membership. The pension fund is then converted into a pension upon the employee's normal retirement age which is defined as when they are eligible for a state pension. The charity has no liability beyond making its contribution and paying across the deductions for the employee's contributions.

Property, plant and equipment

Fixed assets are included 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

Property, plant and equipment is assessed for impairment indicators and if such indicators exist, a full impairment review is conducted.

The property held for mixed use which cannot be seperated between Investment Property and Property, Plant and Equipment is accounted for as Property and Property, Plant and Equipment under applicable SORP and FRS 102.

Investment Property

Investment property is included in the Balance Sheet at fair value. The value is generally established by the Trustees based on guidance and discussions held with independent third parties.

Cash and cash equivalents

Cash and cash equivalents include cash In hand, deposits held at call with banks and other short-term llquid Investments with original maturities of three months or less.

Debtors and creditors

Debtors and creditors with no stated interest rate and receivable or payable are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

Stock

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

Provisions

Provisions are recognised when the charity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Prior year adjustment

The trustees have reclassified an investment property as a property, plant and equipment through a prior period adjustment. The property, acquired in October 2022, was intended for mixed use, including the charity's own use, and should have been classified as a property, plant and equipment from the date of acquisition. This adjustment had no material impact on the the accounts, aside from a reclassification of £33 million from investment property to property, plant and equipment in the Balance sheet.

17 of 25

Docusign Envelope ID: ECFF44D4-51A9-42D8-BB91-5997EB9DCB5E

THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Funds

Unrestircted general funds are 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 unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of the designated funds is set out in notes to the financial statements.

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 notes to 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.

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

Consolidation

The charity owns 100% shares through its trustees of 01Futr Limited, a limited company, registered in England & Wales, company number 15077776. The company was formed on 17 August 2023 and started trading in December 2023. The company has not prepared its first set of accounts yet as the company is less then 6 months as at 31 December 2023.

2 Donations

Chawda Masumin, Jula and Imam
Zamin
General donations
Nyaz
Relief, religious and spiritual
activities
Sadka, Welfare and Bewa Yatim
Gift Aid		 Unrestricted
Funds
£
81,319
716,682
200,763
-
-
118,335
1,117,099		 Restricted
Funds
£
-
1,126,865
-
105,138
557,638
-
1,789,641		 Total
2023
£
81,319
1,843,547
200,763
105,138
557,638
118,335
2,906,740		 Total
2022
£
74,558
8,506,086
204,464
94,275
260,134
128,928
9,268,445
Parking
Announcement and adverts
Directory and calendar
Other Fundraising
Islamic bookshop
Investment income
Rent received
Interest received		 Unrestricted
Funds
£
19,150
8,008
7,501
8,998
62,452
106,109
Unrestricted
Funds
£
1,940,068
28,981
1,969,049		 Restricted
Funds
£
-
-
-
-
-
-
Restricted
Funds
£
-
-
-		 Total
2023
£
19,150
8,008
7,501
8,998
62,452
106,109
Total
2023
£
1,940,068
28,981
1,969,049		 Total
2022
£
11,460
7,233
10,724
4,291
50,022
83,730
Total
2022
£
372,569
5,887
378,456

18 of 25

Docusign Envelope ID: ECFF44D4-51A9-42D8-BB91-5997EB9DCB5E

THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

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)
Expenditure on freehold properties		 Direct
Costs
£
-
525,775
217,137
300,271
24,926
692,305
238,395
1,966,774
66,730
4,032,313		 Support
Costs
£
96,042
253,866
104,843
144,983
12,035
-
115,107
1,171,453
1,298
1,899,627		 Total
2023
£
96,042
779,641
321,980
445,254
36,961
692,305
353,502
3,138,227
68,028
5,931,940		 Total
2022
£
44,467
528,128
267,037
536,839
87,243
292,759
281,739
664,662
50,252
2,753,126

The support cost is allocated on the basis either on a directly attributable to charity activities or apportioned basis. Certain expenditure are apportioned 5% as cost of generating funds and 5% as governance costs.

5b Support costs

Motor vehicles expenditure
Car parking
Printing Postage Stationery
Telephone and internet
Insurances
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
Exchange rate variance
Transport 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 year was as follows:		 2023
£
12,194
22,773
5,414
7,401
13,133
249,515
7,309
247,640
50,407
1,171,453
29,239
336
14,701
563
-
20,718
(1,076)
2,200
45,707
1,899,627
2023
£
480,693
33,269
6,440
520,402
17
11
28
25
3
28		 2022
£
6,815
12,335
7,516
11,232
11,430
53,838
2,894
165,636
36,531
128,515
48,850
-
15,959
-
-
33,784
-
-
39,431
574,766
2022
£
353,693
19,776
4,112
377,581
16
10
26
23
3
26

There was one employee who's remuneration and emoluments was over £60,000 (2022: none).

19 of 25

Docusign Envelope ID: ECFF44D4-51A9-42D8-BB91-5997EB9DCB5E

THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

5d Governance costs

Governance costs
Auditors remuneration
Legal and professional fees
Subscriptions
Share of support costs		 2023
£
6,000
58,695
2,035
1,298
68,028		 2022
£
7,500
39,071
2,127
1,554
50,252

6 Trustees

Trustee have not received any remuneration from the Charity for performing their duties as a trustee (2022 - £Nil). No Trustees received reimbursement for costs for attending meetings and travelling expenses during the year (2022 - £Nil).

20 of 25

Docusign Envelope ID: ECFF44D4-51A9-42D8-BB91-5997EB9DCB5E

THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

7 Investment properties

Cost or Valuation
At 31 December 2022 originally reported
Prior year adjustment
At 1 January 2023 as restated
At 31 December 2023
Net Book Value
At 31 December 2023
At 31 December 2022 as restated		 Investment
Property
£
34,625,000
(33,000,000)
1,625,000
1,625,000
1,625,000
1,625,000

The charity holds investment properties which has been stated at fair value appraised by the Trustees based on guidance received from independent third parties. The trustees concluded that the investment properties are fairly stated.

1 January 2023 figures have been restated due to a prior period adjutsment of £33m incorrectly treated as investment property, now disclosed in note 9.

8 Investment in subsidiary

The charity owns 100% of 01Futr Limited, a company incorporated in England and Wales (Co No 15077776) on 17 August 2023. The activities of the company for the period to 31 Dec 2023 are immaterial as the trading started just before the year end.

9 Property, plant and equipment

Cost or Valuation
At 31 December 2022 originally reported
Prior year adjustment
At 1 January 2023 as restated
Additions
At 31 December 2023
Depreciation
At 1 January 2023
Charge for the year
Disposals
At 31 December 2023
Net Book Value
At 31 December 2023
At 31 December 2022 as restated		 Freehold
Property
£
7,000,000
33,000,000
40,000,000
612,511
40,612,511
180,000
142,192
-
322,192
40,290,319
39,820,000		 Equipment
£
270,105
-
270,105
4,731
274,836
246,854
15,516
-
262,370
12,466
23,251		 Furniture &
Fittings
£
204,829
-
204,829
4,485
209,314
184,493
8,736
-
193,229
16,085
20,336		 Motor
Vehicles
£
87,621
-
87,621
43,591
131,212
87,621
6,539
94,160
37,052
-		 Total
£
7,562,555
33,000,000
40,562,555
665,318
41,227,873
698,968
172,983
-
871,951
40,355,922
39,863,587

At the year the charity had 2 freehold properties. The building element of the properties are depreciated over 50 year period.

A freehold property acquired on 11 October 2022 was incorrectly treated as an investment property in the 2022 financial statements. However, the trustees have made a prior period adjustment to correctly classify the property as a property, plant and equipment, rather than an investment property, from the date of acquisition. This adjustment reflects correction under applicable SORP and FRS 102 requirements.

The cost value of the freehold properties is £38,501,748 (2022: £37,889,237).

21 of 25

Docusign Envelope ID: ECFF44D4-51A9-42D8-BB91-5997EB9DCB5E

THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Debtors
Trade debtors
Prepayments and accrued income
Other debtors
11
Debtors: Amounts falling due after more than one year
Hujjat Housing Scheme		 2023
£
598,162
209,984
142,077
950,223
2023
£
79,461		 2022
£
-
400,235
-
400,235
2022
£
73,518

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.

12
Creditors: Amounts falling due within one year
Trade creditors
Other creditors
Other taxation & social security
Accruals and deferred income (see Note 13 for deferred income breakdown)
13
Deferred income
At 1 January
Released to income
Deferred in year
At 31 December		 2023
£
181,399
1,803,138
86,541
1,034,189
3,105,267
2023
£
234,005
(234,005)
1,034,189
1,034,189		 2022
£
252,552
2,243,461
-
234,005
2,730,018
2022
£
289,590
(289,590)
234,005
234,005

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

14
Creditors: Amounts falling due after more than one year
Bank loan
Other Creditors		 2023
£
14,100,000
8,641,700
22,741,700		 2022
£
14,100,000
10,394,227
24,494,227

The bank loan attracts interest at 3.25% per annum above the Bank of England base rate. The term of the loan is 3 years expiring on 10 Oct 2025. This term is extendable subject to terms and conditions. The loan is secured over the property at Widewater Place, Harefield only.

Other creditors includes an unsecured advance received from The World Federation of KSIMC (WF), an associated organisation serving members of our community. The advance is towards the acquisition of the property and use of the property by WF with no interest being charged.

22 of 25

Docusign Envelope ID: ECFF44D4-51A9-42D8-BB91-5997EB9DCB5E

THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

15 Unrestricted Funds

Designated fund
Burial
Secular Education
Religious Education
Seniors Activities
Al Haadi
Other
General fund		 At
1 January
2023
£
469,925
48,059
132,349
8,973
3,619
14,098
677,023
381,516
1,058,539		 Income
£
227,106
243,687
184,781
24,518
45,243
14,495
739,830
4,627,278
5,367,108		 Expenditure
£
(216,237)
(227,137)
(283,311)
(17,293)
(37,672)
(34,175)
(815,825)
(4,301,618)
(5,117,443)		 At
31 December
Transfers
2023
£
-
480,794
(64,609)
-
(33,819)
-
(16,198)
-
(11,190)
-
5,582
-
(120,234)
480,794
537,230
1,244,406
416,996
1,725,200

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 use 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 use 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 use by the Seniors for their activities

Al Haadi fund

Al Haadi fund relates to surplus reeserves which the Trustees have designated specifically for future use by the youth's

Other fund

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

23 of 25

Docusign Envelope ID: ECFF44D4-51A9-42D8-BB91-5997EB9DCB5E

THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

16 Restricted Funds

Sadka and welfare
Relief and Khums
Bewa and yatim
Welfare Loans
Library
Medical
Who is Hussein
Fountain fund
British Sign Language
Covid Fund
Lady Zainab Repairs Fund
Hujjat Orphan Burial Fund
Capital (fixed asset) fund
Foundation Fund
Financial Independent scheme
Revaluation reserve		 At
1 January
2023
£
46,662
35,068
6,628
25,275
189
353
50
290
959
4,385
414,409
23,673
13,336,067
181
156,224
14,050,413
2,887,720
16,938,133		 Income
£
91,852
557,638
8,136
5,150
15
37
50
-
-
-
1,550
1,125,213
-
-
1,789,641
-
1,789,641		 Expenditure
£
(142,046)
(550,209)
-
-
-
-
(50)
-
-
-
-
(122,192)
-
(814,497)
-
(814,497)		 31 December
Transfer
2023
£
£
3,532
-
-
42,497
-
14,764
-
30,425
(204)
-
(390)
-
-
50
-
290
(959)
-
(4,385)
-
(414,409)
-
-
25,223
-
14,339,088
(181)
-
-
156,224
(416,996)
14,608,561
-
2,887,720
(416,996)
17,496,281

Descriptions of funds

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

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

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, including grants received from Council.

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.

24 of 25

Docusign Envelope ID: ECFF44D4-51A9-42D8-BB91-5997EB9DCB5E

THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

17 Analysis of Net Assets between Funds

Analysis of Net Assets between Funds
Fund balances at 31 December 2023
represented by:
Total fixed assets
Net current assets
Total net assets		 General
Funds
£
24,750,231
(23,505,825)
1,244,406		 Designated
Funds
£
3,887
476,907
480,794		 Restricted
Funds
£
17,226,808
269,473
17,496,281		 Total
Funds
£
41,980,926
(22,759,445)
19,221,481

18 Operating lease commitments

Lessee

At the reporting end date the charity had outstanding commitments for future minimun lease payments under non-cancellable operating leases, which fall due as follows:

non-cancellable operating leases, which fall due as follows:
Within one year
Between one and five years		 2023
£
54,680
-
54,680		 2022
£
109,454
59,276
168,730

Lessor

At the reporting end date the charity had contracted with tenants for the following minimum lease payments:

Within one year
Between one and five years		 2023
£
1,450,932
1,231,050
2,681,982		 2022
£
1,311,919
2,335,644
3,647,563

19 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 the charity 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. £309,005 (2022: £260,134) has been paid out to CoEJ which includes funds received for religious dues and sadka. Included within creditors, amounts falling due after more than one year, is an amount £8,083,412 (2022: £8,083,412) from the World Federation. There is no interest attached to this amount.

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.

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 2023, 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 2023 the aggregate of payments by the Charity to such related parties totalled £3,922 (2022: £4,342).

During the year the charity received donations of £58,041 (2022: £50,697) from the trustees.

During the year the charity took new loans from the trustees of £Nil (2022: £70,000). The £70,000 received from trustees (now ex-trustees), £5,000 was repaid in 2022, £30,000 was converted to donation in 2023 and the remaining outstanding balance of £35,000, £20,000 due to be repaid in 2024 was also converted into donation post year end and the balance of £15,000 is due to be repaid by 2026. The loans are interest free, unsecured and no guarantees have been provided.

25 of 25