Charity Registeration Number 292922
BAITUL AZIZ ISLAMIC CULTURAL TRUST
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
BAITUL AZIZ ISLAMIC CULTURAL TRUST
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Taz Ahmed Saiyeed Haque Aziz Miah Kholkur Rahman Mohammad Uddin
Charity Number
292922
Principal Address
I Dickens Square Harper Road London SE1 4JL
Independent Examiner
Rakibul Ahsan ACCA Elite Accountancy 102 Mile End Road London E1 4UN
BAITUL AZIZ ISLAMIC CULTURAL TRUST Report and accounts Contents
| Page | |
|---|---|
| Trustees' Report | 1-2 |
| Independent Examniers' Report | 3 |
| Statement of Financial Activities | 4 |
| Balance sheet | 5 |
| Notes to the Financial Statements | 6-15 |
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
The trustees present their report and financial statements for the year ended 31 December 2021.
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
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TRUSTEES' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
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' report was approved by the Board of Trustees.
Kholkur Rahman
Trustee
Dated: Sep 27 2023
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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 2021.
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:
1 accounting records were not kept in respect of the trust as required by section 130 of the 2011 Act; or
2 the financial statements do not accord with those records; or
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 don't have any 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.
Rakibul Ahsan ACCA
Dated: Sep 27 2023 Elite Accountancy 102 Mile End Road London E1 4UN
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BAITUL AZIZ ISLAMIC CULTURAL TRUST
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2021
| Notes Income from: Donations and legacies 3 Charitable activities 4 Total income Expenditure on: Charitable activities 5 Fund balance at 31 December 2021 Net (expenditure)/income for the year/ Net movement in funds Fund balance at 1 January 2021 |
2021 £ 187,969 - 187,969 149,208 (36,828) 2,032,521 1,995,693 Unrestricted Funds |
2021 £ 8,691 - 8,691 2,500 6,191 213,668 219,859 Restricted Funds |
Total 2021 £ 196,660 196,660 151,708 (30,637) 2,246,189 2,215,552 |
2020 £ 92,382 509 92,891 120,195 (27,304) 2,059,825 2,032,521 Unrestricted Funds |
2020 £ 32,588 - 32,588 6,809 25,779 187,889 213,668 Restricted Funds |
Total 2020 £ 124,970 509 125,479 127,004 (1,525) 2,247,714 2,246,189 |
|---|---|---|---|---|---|---|
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BAITUL AZIZ ISLAMIC CULTURAL TRUST
Balance Sheet As at 31 December 2021
| Notes Fixed assets Tangible assets 10 Current assets Debtors 11 Cash at bank and in hand 13 Net current liabilities Total assets less current liabilities Income funds Restricted funds 14 Unrestricted funds Creditors: amounts falling due within one year |
£ £ 2,250,810 738 323,992 324,730 (359,988) (35,258) 2,215,552 219,859 1,995,693 2,215,552 2021 |
£ £ 2,279,929 629 247,613 248,242 (281,982) (33,740) 2,246,189 213,668 2,032,521 2,246,189 2020 |
|---|---|---|
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BAITUL AZIZ ISLAMIC CULTURAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
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 amounts 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 t t t
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.
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BAITUL AZIZ ISLAMIC CULTURAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
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
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 Leasehold improvements over life of Fixtures, fittings & equipment 10% p.a. on Motor vehicles 10% p.a. on
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
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.
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BAITUL AZIZ ISLAMIC CULTURAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
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.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate
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
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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.
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BAITUL AZIZ ISLAMIC CULTURAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
2 Critical accounting estimates and judgements
pp g p q j g estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
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BAITUL AZIZ ISLAMIC CULTURAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
3 Donations and legacies
| Government grant Charitable activities Charitable activities Ex Staff costs Other direct activities costs Grant funding activities (see note 6) Share of support costs (see note 7) Share of governance costs (see note 7) Donation and gifts Sales of calenders |
182,971 4,998 187,969 Unrestricted funds 2021 £ |
2021 £ 8,691 - 8,691 Restricted funds |
Total 2021 £ 191,662 4,998 196,660 |
75,767 16,615 92,382 2020 £ Unrestricted funds |
2020 £ 32,588 - 32,588 2021 £ - 2021 £ 40,656 10,528 51,184 47 99,475 1,002 151,708 Mosque activities Restricted funds |
Total 2020 £ 108,355 16,615 124,970 2020 £ 509 2020 £ 55,854 6,619 62,473 133 63,396 1,002 127,004 Mosque activities |
|---|---|---|---|---|---|---|
4 Charitable activities
5 Charitable activities Ex
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BAITUL AZIZ ISLAMIC CULTURAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
| Analysis by fund 6 Grant payable 7 Support costs Analysed between Charitable activities Staff costs Depreciation Premises costs Administration costs Accountancy Unrestricted funds Restricted funds Grants to individuals |
£ 8,045 29,119 55,605 6,705 - 99,475 99,475 Support cost |
£ - - - - 1,002 1,002 1,002 Governance costs |
2021 £ 8,045 29,119 55,605 6,705 1,002 100,477 100,477 |
£ 4,640 29,119 27,241 2,396 - 63,396 63,396 Support cost |
149,208 2,500 151,708 47 47 £ - - - - 1,002 1,002 1,002 Governance costs |
120,195 6,809 127,004 133 133 2020 £ 4,640 29,119 27,241 2,396 1,002 64,398 64,398 |
|---|---|---|---|---|---|---|
Governance costs includes payments to the independent examiner of £0 (2020-£1,002) for independent examination and accountancy fees.
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BAITUL AZIZ ISLAMIC CULTURAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
8 Trustees
None of the trustee (or any persons connected with them) received any remuneration during the year, and none of them were reimbursed any expenses (2020-none were reimbursed).
9 Employees
Number of empoyees
The average monthly number of empoyees during the year was £60,000 or more
| Imams Others Employment costs Wages and salaries Other pension costs There were no employees whose annual remuneration Tangibale fixed assets Cost At 1 January 2021 Additions Disposals At 31 December 2021 |
£ 61,702 61,702 Land and buildings |
£ £ 2,458,824 77,217 552 2,458,824 77,769 Leasehold improvements Fixtures, fittings & equipment |
2021 Number 3 1 4 2021 £ 48,701 1,222 49,923 £ 9,020 9,020 Motor vehicles |
2020 Number 3 1 4 2020 £ 59,725 769 60,494 Total £ 2,606,763 2,606,763 |
|---|---|---|---|---|
10 Tangibale fixed assets
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BAITUL AZIZ ISLAMIC CULTURAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
| Depreciation and impairment At 1 January 2021 Depreciation charged in the year Eliminated in respect of disposals At 31 December 2021 Carrying amount At 31 December 2021 At 31 December 2020 11 Debtors Amounts falling due within one year: Prepayements and accrued income 12 Loans and overdrafts Other loans Payable within one year The laons are unsceured and carry no interest charge 13 Creditors: amounts falling due within one year Borrowings Other creditors Accruals and defrred income |
6,915 247 7,162 54,540 54,787 |
263,638 24,116 287,754 2,171,070 2,195,186 |
54,477 3,909 58,386 19,383 26,144 |
1,804 902 2,706 6,314 8,118 2021 £ 738 354,988 354,988 354,988 788 4,212 359,988 |
326,834 29,119 355,953 2,250,810 2,279,929 2020 £ 629 280,045 280,045 280,045 152 1,785 281,982 |
|---|---|---|---|---|---|
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BAITUL AZIZ ISLAMIC CULTURAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
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:
| £ Building Fund 187,330 Equipment 559 187,889 Analysis of net assets between funds Tangible assets Fund balance at 31 December 2021 are represented by: Current assets/ (liabilities) Balance at 1 January 2020 |
£ £ £ 32,588 (6,611) 213,307 - (198) 361 32,588 (6,809) 213,668 Total 2021 £ £ £ 2,030,951 219,859 2,250,810 (35,258) - (35,258) 1,995,693 219,859 2,215,552 Incoming resources Resources expended Balance at 1 January 2021 Movement in funds Unrestricted funds 2021 Restricted funds 2021 |
Resources Expended £ £ £ 8,691 (2,500) 219,498 - - 361 8,691 (2,500) 219,859 Restrcited Total funds 2020 2020 £ £ £ 2,066,261 213,668 2,279,929 (33,740) - (33,740) 2,032,521 213,668 2,246,189 Incoming resources Movement in funds Balance at 31 December 2021 Unrestricted funds 2020 |
|---|---|---|
15 Analysis of net assets between funds
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BAITUL AZIZ ISLAMIC CULTURAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
16 Related party transactions
There are no disclosable related party transactions during the year (2020-none)
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