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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
**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**
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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 - 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|
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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** 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
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## **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**
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## **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.
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## **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.
- (d) To hold and arrange Islamic Religious services and ceremonies and in particular the performance of nikah.
- (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.
- (i) To issue appeals for donations and periodical reports on the work of the Charity.
- (j) To do all such others things as shall further the above-mentioned objects.
As a result of the general guidance on public benefit, the Trustees have assessed the objectives as follows:
- Hold regular congregations to observe and propagate the Shia Ithna-Asheri faith; - Repair and maintain the Charity’s listed building where most of the activities take place;
- Produce regular publications;
- Maintain, and enhance, the Charity’s website;
- Arrange educational and faith seminars (including inter-faith symposiums); - Continuously cater for the youth and senior citizens;
- Promote religious education; and
- Enhance relationships within the local community.
- to try and secure separate accomodation for the Membership body
## **Achievements and Performance**
In order to meet the objectives, the Trustees carried out several activities and are pleased to report the following achievements:
- Regular faith based ocassions and commemorations held at the centre - weekly, seasonal and ocassional; - Regular Senior Citizens weekly in-person gatherings;
- Provide significant financial and other support for youth development and their social activities;
- Provide support to those most affected in our community by the cost of living crisis;
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## **THE KHOJA SHIA ITHNAASHERI MUSLIM COMMUNITY OF LONDON**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023**
- Continued development of the new CRM Database - Salesforce and Hujjat Website;
- Worked closely with the resident Alim (Scholar) to guide the community on religious affairs;
- Continued in phased approach, the internal refurbishment works
- Continued with the consultants, and necessary bodies with regards to internal refurbishment works;
- Continuing of internal Hujjat process improvements / modernisation and automation of IT systems;
- Continued to support Hujjat Maternal Services in their activities;
- Launched Futr - innovative and community centric office and co-working space at Hujjat Harefield 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 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.
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## **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:
- Continue to invest in training of volunteers to improve efficiency in all services offered at the centre; by holding classes run by professional trainers
- Continue in educating the members and community at large on social and health issues by inviting professional speakers and further promoting services provided such as the talks during programmes on pertinent health issues.
- Continue to work closely with the property refurbishment team to ensure our centre is restored and modernised to meet the needs of our community. Launch and develop a fundraising plan to raise the necessary funds to complete the project.
- Continue to progress on the Hujjat Harefield project.
- Continue working with our youth and guide them in all aspects to be future leaders of our community.
- Continue to assist our community members to deal with all the challenges in the post-Covid climate and cost-ofliving crisis. Specifically, mental and financial wellbeing, and active support to our senior members.
- Continue to engage with the neighbours and other local communities to maintain cordial relationships.
- Continue to upgrade our IT & AV system to meet the future challenges of the online world.
- Improve member engagement through an interactive and up-to date database and enhanced social media following.
- Expand and build upon the welfare & employment services, ensuring sustainable growth.
- Create effective ways of working within EC and engage with members more effectively for more transparency.
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## **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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures
- disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
- Charity will continue in business.
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**
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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 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:
- give a true and fair view of the state of the charity's affairs as at 31 December 2023 and of its income and
- expenditure for the year then ended:
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice:
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (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:
- the information given in the financial statements is inconsistent in any material respect with the Trustees report; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not obtained all the information and explanations necessary for the purposes of our audit.
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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, 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:
- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.
- Enquiring of management of whether they are aware of any non-compliance with laws and regulations.
- Enquiring of management whether they have knowledge of any actual, suspected or alleged fraud. - Enquiring of management their internal controls established to mitigate risk related to fraud or non-compliance with laws and regulations.
- Discussions amongst the engagement team on how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in the following areas; posting of unusual journals.
- Obtaining understanding of the legal and regulatory framework the company operates in focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations. The key laws and regulations we considered in this context included UK Companies Act and UK Charity Act, tax legislation,data protection, anti-bribery, employment and health and safety.
## **Audit response to risks identified**
## _**Fraud due to management override**_
To address the risk of fraud through management bias and override of controls, we:
- Performed analytical procedures to identify any unusual or unexpected relationships;
- Audited the risk of management override of controls, including through testing journal entries for appropriateness; - Assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and
- Investigated the rationale behind significant or unusual transactions.
## _**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:
- Agreeing financial statements disclosures to underlying supporting documentation.
- Reviewing minutes of meetings of those charged with governance.
- Enquiring of management as to actual and potential litigation claims.
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## **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.
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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.
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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.
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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.
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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|
- **3 Activities for generating funds**
|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|
- **4 Investment income**
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).
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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.
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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
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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.
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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.
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