Charity Registeration Number 292922 ## **BAITUL AZIZ ISLAMIC CULTURAL TRUST** # **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** ## **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 2022** The trustees present their report and financial statements for the year ended 31 December 2022. 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 Page 1 ## **TRUSTEES' REPORT** ## **FOR THE YEAR ENDED 31 DECEMBER 2022** 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: Oct 30 2023 Page 2 **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 2022. ## **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: Elite Accountancy 102 Mile End Road London E1 4UN Page 3 ## **BAITUL AZIZ ISLAMIC CULTURAL TRUST** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## **FOR THE YEAR ENDED 31 DECEMBER 2022** |**Notes**
**Income from:**
Donations and legacies
**3**
**Total income**
**Expenditure on:**
Charitable activities
**4**
**Fund balance at 31**
**December 2022**
**Net (expenditure)/income**
**for the year/ Net movement**
**in funds**
Fund balance at 1
January 2022|**2022**
**£**
252,178
252,178
131,563
120,616
1,995,693
2,116,309
**Unrestricted**
**Funds**|**2022**
**£**
4,384
4,384
-
4,384
219,859
224,243
**Restricted**
**Funds**|**Total**
**2022**
**£**
256,561
256,561
131,563
124,999
2,215,552
2,340,551|**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| |---|---|---|---|---|---|---| Page 4 ## **BAITUL AZIZ ISLAMIC CULTURAL TRUST** ## **Balance Sheet As at 31 December 2022** |**Notes**
**Fixed assets**
Tangible assets
**9**
**Current assets**
Debtors
**10**
Cash at bank and in hand
**12**
Net current assets/(liabilities)
**Total assets less current liabilities**
**Income funds**
Restricted funds
**13**
Unrestricted funds
**Creditors: amounts falling due within**
**one year**|**£**
**£**
2,221,374
371
439,840
440,210
(321,033)
119,177
2,340,551
224,243
2,116,309
2,340,551
**2022**|**£**
**£**
2,250,810
738
323,992
324,730
(359,988)
(35,258)
2,215,552
219,859
1,995,693
2,215,552
**2021**| |---|---|---| Page 5 **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. Page 6 **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. Page 7 **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 ff ## **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. Page 8 **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. Page 9 **BAITUL AZIZ ISLAMIC CULTURAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **3 Donations and legacies** |Government grant
Donation and gifts|252,178
-
252,178
**Unrestricted**
**funds**
**2022**
**£**|**2022**
**£**
4,384
-
4,384
**Restricted**
**funds**|**Total**
**2022**
**£**
256,561
-
256,561|182,971
4,998
187,969
**2021**
**£**
**Unrestricted**
**funds**|**2021**
**£**
8,691
-
8,691
**Restricted**
**funds**|**Total**
**2021**
**£**
191,662
4,998
196,660| |---|---|---|---|---|---|---| ## **4 Charitable activities Ex** |**Analysis by fund**
Unrestricted funds
Restricted funds
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)|**2022**
**£**
43,410
19,681
63,091
-
67,272
1,200
131,563
131,563
-
131,563
**Mosque**
**activities**|**2021**
**£**
40,656
10,528
51,184
47
99,475
1,002
151,708
149,208
2,500
151,708
**Mosque**
**activities**| |---|---|---| Page 10 **BAITUL AZIZ ISLAMIC CULTURAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **5 Grant payable** |**Support costs**
Analysed between
Charitable activities
Staff costs
Depreciation
Premises costs
Administration costs
Accountancy
Grants to individuals|**£**
15,400
29,436
17,797
4,638
-
67,272
67,272
**Support cost**|**£**
-
-
-
-
1,200
1,200
1,200
**Governance**
**costs**|**2022**
**£**
15,400
29,436
17,797
4,638
1,200
68,472
68,472|**£**
8,045
29,119
55,605
6,705
-
99,475
99,475
**Support**
**cost**|-
-
**£**
-
-
-
-
1,002
1,002
1,002
**Governance**
**costs**|47
47
**2021**
**£**
8,045
29,119
55,605
6,705
1,002
100,477
100,477| |---|---|---|---|---|---|---| ## **6 Support costs** Governance costs includes payments to the independent examiner of £1200 (2021-£1002) for independent examination and accountancy fees. ## **7 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 (2021-none were reimbursed). Page 11 ## **BAITUL AZIZ ISLAMIC CULTURAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **8 Employees** ## **Number of empoyees** The average monthly number of empoyees during the year was: |Imams
Others
**Employment costs**
Wages and salaries
Other pension costs
There were no employees whose annual remuneration was £60000 or more
**Tangibale fixed assets**
**£**
**Cost**
At 1 January 2022
61,702
Additions
Disposals
**At 31 December 2022**
**61,702**
**Depreciation and impairment**
At 1 January 2022
7,162
Depreciation charged in the year
247
**Land and**
**buildings**|**£**
**£**
2,458,824
77,769
1000
**2,458,824**
**78,769**
287,754
58,331
24,116
4,171
**Leasehold**
**improvements**
**Fixtures,**
**fittings &**
**equipment**|**2022**
**Number**
3
1
4
**2022**
**£**
58,810
1,954
60,764
**£**
9,020
**9,020**
2,706
902
**Motor vehicles**|**2021**
**Number**
3
1
4
**2021**
**£**
48,701
1,222
49,923
**Total**
**£**
2,606,763
**2,606,763**
355,953
29,436
| |---|---|---|---| ## **9 Tangibale fixed assets** Page 12 **BAITUL AZIZ ISLAMIC CULTURAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** |Eliminated in respect of disposals
**At 31 December 2022**
Carrying amount
At 31 December 2022
**At 31 December 2021**
**10**
**Debtors**
**Amounts falling due within one year:**
Prepayements and accrued income
**11**
**Loans and overdrafts**
Other loans
Payable within one year
The laons are unsceured and carry no interest charge
**12**
**Creditors: amounts falling due within one year**
Borrowings
Other creditors
Accruals and defrred income|**7,409**
**54,293**
**54,540**|**311,870**
**2,146,954**
**2,171,070**|**62,502**
**16,267**
**19,383**|**3,608**
**5,412**
**6,314**
**2022**
**£**
371
314,978
314,978
314,978
500
5,555
321,033|**385,389**
**2,221,374**
**2,250,810**
**2021**
**£**
738
354,988
354,988
354,988
788
4,212
359,988| |---|---|---|---|---|---| Page 13 **BAITUL AZIZ ISLAMIC CULTURAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **13 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
213,307
Equipment
361
213,668
**Analysis of net assets between funds**
Tangible assets
Fund balance at 31
December 2022 are
represented by:
Current assets/
(liabilities)
**Balance at 1**
**January 2021**|**£**
**£**
**£**
8,691
(2,500)
219,498
-
-
361
8,691
(2,500)
219,859
**Total**
**2022**
**£**
**£**
**£**
1,997,131
224,243
2,221,374
119,177
-
119,177
2,116,309
224,243
2,340,551
**Incoming**
**resources**
**Resources**
**expended**
**Balance at 1**
**January 2022**
**Movement in funds**
**Unrestricted**
**funds**
**2022**
**Restricted**
**funds**
**2022**|**Resources**
**Expended**
**£**
**£**
**£**
4,384
-
223,882
-
-
361
4,384
-
224,243
**Restrcited**
**Total**
**funds**
**2021**
**2021**
**£**
**£**
**£**
2,030,951
219,859
2,250,810
(35,258)
-
(35,258)
1,995,693
219,859
2,215,552
**Incoming**
**resources**
**Movement in funds**
**Balance at 31**
**December**
**2022**
**Unrestricted**
**funds**
**2021**| |---|---|---| ## **14 Analysis of net assets between funds** Page 14 ## **BAITUL AZIZ ISLAMIC CULTURAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** - **15 Related party transactions** There are no disclosable related party transactions during the year (2021-none) Page 15 Audit Trail |**Document Details**|**Document Details**|**Document Details**||| |---|---|---|---|---| |**Title**|ACCOUNTS 2022 PDF D1.pdf|||| |**File Name**|ACCOUNTS 2022 PDF D1.pdf|||| |**Document ID**|1dd2c8097f0349ca970ed481db5709f8|||| |**Fingerprint**|a26361de2df189ccbf7ed573fb412b1|||| |**Status**|Completed|||| |**Document History**||||| |**Document Created**||Document Created by Yousuf Ali (elite_2012@yahoo.co.uk)
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