Charity Registration No. 292922
BAITUL AZIZ ISLAMIC CULTURAL TRUST ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
BAITUL AZIZ ISLAMIC CULTURAL TRUST
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Taz Ahmed Saiyeed Haque Aziz Miah Kholkur Rahman Mohammed Uddin
Charity number 292922 Principal address I Dickens Square Harper Road London SE1 4JL Independent examiner Richard F Hopper Chinthurst 30 St Stephens Hill Launceston Cornwall PL15 8HN
BAITUL AZIZ ISLAMIC CULTURAL TRUST
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Notes to the financial statements | 6 - 13 |
BAITUL AZIZ ISLAMIC CULTURAL TRUST
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
The trustees present their report and financial statements for the year ended 31 December 2020.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the trust's [governing document], the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
Objectives and activities
The main policy adopted in furtherance of these objects is the running of a mosque in London and there has been no change in this during the year.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the trust should undertake.
Achievements and performance
Details of the development, activities and achievements of the trust during the year are set out in the separate annual report.
Financial review
There was a surplus of donations received over costs incurred during the year as shown in the attached accounts. The surplus will be put towards the remaining costs of completing the mosque building and repaying related loans.
It is the policy of the trust that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the trust’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The trustees have assessed the major risks to which the trust is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Structure, governance and management
The trust was established by a charitable trust deed on 2 October 1985.
The trustees who served during the year and up to the date of signature of the financial statements were: Taz Ahmed Saiyeed Haque Aziz Miah Kholkur Rahman Mohammed Uddin
New trustees are appointed by existing trustees as need arises.
The trust is overseen by the trustees who meet regularly during the year. Imams are employed to lead the worship services, teach the Islamic faith, look after the mosque and assist in the religious performances preparatory to the congregational prayers. They also provide advice on moral upbringing to help reduce drug-taking and other ills affecting society. The trustees expect to soon introduce a core curriculum syllabus for boys and girls.
The trustees' r eport was approved by the Board of Trustees.
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BAITUL AZIZ ISLAMIC CULTURAL TRUST
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
.............................. Kholkur Rahman Trustee Feb 02 2022 Dated: .........................
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BAITUL AZIZ ISLAMIC CULTURAL TRUST
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF BAITUL AZIZ ISLAMIC CULTURAL TRUST
I report to the trustees on my examination of the financial statements of Baitul Aziz Islamic Cultural Trust (the trust) for the year ended 31 December 2020.
Responsibilities and basis of report
As the trustees of the trust you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the trust’s financial statements carried out under section 145 of the 2011 Act . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the trust as required by section 130 of the 2011 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Richard F Hopper
Chartered Accountant Chinthurst 30 St Stephens Hill Launceston Cornwall PL15 8HN
Dated: .........................
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BAITUL AZIZ ISLAMIC CULTURAL TRUST
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020
| Unrestricted Restricted funds funds 2020 2020 Notes £ £ Income from: Donations and legacies 3 92,382 32,588 Charitable activities 4 509 - Total income 92,891 32,588 Expenditure on: Charitable activities 5 120,195 6,809 Net (expenditure)/income for the year/ Net movement in funds (27,304) 25,779 Fund balances at 1 January 2020 2,059,825 187,889 Fund balances at 31 December 2020 2,032,521 213,668 |
TotalUnrestricted funds 2020 2019 £ £ 124,970 257,005 509 1,369 125,479 258,374 127,004 127,739 (1,525) 130,635 2,247,714 1,929,190 2,246,189 2,059,825 |
Restricted funds 2019 £ 4,775 - 4,775 6,596 (1,821) 189,710 187,889 |
Total 2019 £ 261,780 1,369 263,149 134,335 128,814 2,118,900 2,247,714 |
|---|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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BAITUL AZIZ ISLAMIC CULTURAL TRUST
BALANCE SHEET
AS AT 31 DECEMBER 2020
| 2020 Notes £ £ Fixed assets Tangible assets 10 2,279,929 Current assets Debtors 11 629 Cash at bank and in hand 247,613 248,242 Creditors: amounts falling due within one year 13 (281,982) Net current liabilities (33,740) Total assets less current liabilities 2,246,189 Income funds Restricted funds 14 213,668 Unrestricted funds 2,032,521 2,246,189 The financial statements were approved by the Trustees on ......................... .............................. .............................. Saiyeed Haque Kholkur Rahman Trustee Trustee Feb 02 2022 |
2019 £ £ 2,306,398 1,896 267,261 269,157 (327,841) (58,684) 2,247,714 187,889 2,059,825 2,247,714 |
|---|---|
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BAITUL AZIZ ISLAMIC CULTURAL TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
1 Accounting policies
Charity information
Baitul Aziz Islamic Cultural Trust is an unincorporated charitable trust.
1.1 Accounting convention
The financial statements have been prepared in accordance with the trust's constitution, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The trust is a Public Benefit Entity as defined by FRS 102.
The trust has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling , which is the functional currency of the trust. Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the trust has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
1.4 Incoming resources
Income is recognised when the trust is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the trust has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the trust has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
1.5 Resources expended
Expenditure is charged in the accounts at the time when a liability to make payment is incurred.
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BAITUL AZIZ ISLAMIC CULTURAL TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
1 Accounting policies
(Continued)
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings over life of lease Leasehold improvements over life of lease Fixtures, fittings & equipment 10% p.a. on cost Motor vehicles 10% p.a. on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
1.7 Impairment of fixed assets
At each reporting end date, the trust reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
1.8 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9 Financial instruments
The trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the trust's balance sheet when the trust becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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BAITUL AZIZ ISLAMIC CULTURAL TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
1 Accounting policies
(Continued)
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the trust’s contractual obligations expire or are discharged or cancelled.
1.10 Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2 Critical accounting estimates and judgements
In the application of the trust’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3 Donations and legacies
| Unrestricted Restricted funds funds 2020 2020 £ £ Donations and gifts 75,767 32,588 Government coronavirus grant 16,615 - 92,382 32,588 |
TotalUnrestricted Restricted funds funds 2020 2019 2019 £ £ £ 108,355 257,005 4,775 16,615 - - 124,970 257,005 4,775 |
Total 2019 £ 261,780 - 261,780 |
|---|---|---|
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BAITUL AZIZ ISLAMIC CULTURAL TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
4 Charitable activities
| 2020 | 2019 | ||
|---|---|---|---|
| £ | £ | ||
| Sales | of calendars | 509 | 1,369 |
5 Charitable activities
| Mosque | Mosque | |
|---|---|---|
| activities | activities | |
| 2020 | 2019 | |
| £ | £ | |
| Staff costs | 55,854 | 62,807 |
| Other direct activities costs | 6,619 | 1,515 |
| 62,473 | 64,322 | |
| Grant funding of activities (see note 6) | 133 | 696 |
| Share of support costs (see note 7) | 63,396 | 68,441 |
| Share of governance costs (see note 7) | 1,002 | 876 |
| 127,004 | 134,335 | |
| Analysis by fund | ||
| Unrestricted funds | 120,195 | 127,739 |
| Restricted funds | 6,809 | 6,596 |
| 127,004 | 134,335 | |
| For the year ended 31 December 2019 | ||
| Unrestricted funds | 127,739 | |
| Restricted funds | 6,596 | |
| 134,335 |
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BAITUL AZIZ ISLAMIC CULTURAL TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
6 Grants payable
| Grants to individuals - 7 Support costs Support costs Governance costs £ £ Staff costs 4,640 - Depreciation 29,119 - Premises costs 27,241 - Administration costs 2,396 - Accountancy - 1,002 63,396 1,002 Analysed between Charitable activities 63,396 1,002 |
Mosque activities Mosque activities 2020 2019 £ £ 133 696 133 696 2020 Support costs Governance costs 2019 £ £ £ £ 4,640 7,070 - 7,070 29,119 29,266 - 29,266 27,241 29,321 - 29,321 2,396 2,784 - 2,784 1,002 - 876 876 64,398 68,441 876 69,317 64,398 68,441 876 69,317 |
|---|---|
Governance costs includes payments to the independent examiner of £1,002 (2019- £876) for independent examination and accountancy fees.
8 Trustees
None of the trustees (or any persons connected with them) received any remuneration during the year, and none of them were reimbursed any expenses (2019- none were reimbursed).
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BAITUL AZIZ ISLAMIC CULTURAL TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
9 Employees
Number of employees
The average monthly number of employees during the year was:
| Imams Others Employment costs Wages and salaries Other pension costs There were no employees whose annual Tangible fixed assets Cost At 1 January 2020 Additions Disposals At 31 December 2020 Depreciation and impairment At 1 January 2020 Depreciation charged in the year Eliminated in respect of disposals At 31 December 2020 Carrying amount At 31 December 2020 At 31 December 2019 |
2020 Number 3 1 4 2020 £ 59,725 769 60,494 remuneration was £60,000 or more. Land and buildings Leasehold improvements Fixtures, fittings & equipment Motor vehicles £ £ £ £ 61,702 2,456,624 77,067 9,020 - 2,200 450 - - - (300) - 61,702 2,458,824 77,217 9,020 6,668 239,522 50,923 902 247 24,116 3,854 902 - - (300) - 6,915 263,638 54,477 1,804 54,787 2,195,186 22,740 7,216 55,034 2,217,102 26,144 8,118 |
2019 Number 3 1 4 2019 £ 69,218 659 69,877 Total £ 2,604,413 2,650 (300) 2,606,763 298,015 29,119 (300) 326,834 2,279,929 2,306,398 |
|---|---|---|
There were no employees whose annual remuneration was £60,000 or more. 10 Tangible fixed assets
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BAITUL AZIZ ISLAMIC CULTURAL TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
| 11 Debtors Amounts falling due within one year: Prepayments and accrued income 12 Loans and overdrafts Other loans Payable within one year The loans are unsecured and carry no interest charge. 13 Creditors: amounts falling due within one year Borrowings Other creditors Accruals and deferred income |
2020 £ 629 2020 £ 280,045 280,045 2020 £ 280,045 152 1,785 281,982 |
2019 £ 1,896 2019 £ 324,945 324,945 2019 £ 324,945 139 2,757 327,841 |
|---|---|---|
14 Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
| Movement in funds | Movement in funds | Movement in funds | Movement in funds | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Balance at | Incoming | Resources | Balance at | Incoming | Resources | Balance at | |||
| 1 | January 2019 | resources | expended | 1 |
January 2020 | resources | expended | 31 December | |
| 2020 | |||||||||
| £ | £ | £ | £ | £ | £ | £ | |||
| Building | |||||||||
| Fund | 189,061 | 4,775 | (6,506) | 187,330 |
32,588 | (6,611) | 213,307 |
||
| Equipment | 649 | - | (90) | 559 |
- | (198) | 361 |
||
| 189,710 | 4,775 | (6,596) | 187,889 |
32,588 | (6,809) | 213,668 |
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BAITUL AZIZ ISLAMIC CULTURAL TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
| 15 Analysis of net assets between funds Unrestricted funds Restricted funds 2020 2020 £ £ Fund balances at 31 December 2020 are represented by: Tangible assets 2,066,261 213,668 Current assets/ (liabilities) (33,740) - 2,032,521 213,668 |
TotalUnrestricted funds 2020 2019 £ £ 2,279,929 2,118,617 (33,740) (58,792) 2,246,189 2,059,825 |
Restricted funds 2019 £ 187,781 108 187,889 |
Total 2019 £ 2,306,398 (58,684) 2,247,714 |
|---|---|---|---|
16 Related party transactions
There were no disclosable related party transactions during the year (2019 - none).
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