Charity Registeration Number 292922 BAITUL AZIZ ISLAMIC CULTURAL TRUST ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 BAITUL AZIZ ISLAMIC CULTURAL TRUST LEGAL AND ADMINISTRATIVE INFORMATION Truslees Taz Ahmed Mamunur Rashid Faisal Morhad Alam Mohammed Amed Uddin 2iz Mi8h Saiyeed Tayeedul Haque Charity Number 292922 Prlnclpal Address 1 Dickens Square Harper Road London SE14JL Indèpendent Examiner Rakibul Ahsan ACCA Eli(e Accolsnlancy 102 Mile End Road London E1 4UN BAITUL AZIZ ISLAMIC CULTURAL TRUST Report and accounts Contents Pago Trustees, Report Independent Examniers. Report Stslement of Fit)ancial Activities Balance sheet Notes lo the Financial Statements 6-15 TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 The trustees present their report and financial statements for the year ended 31 December 2023. The financial statements have been prepared in accordance with the accounting policies set out in nole 1 to the financial slalements and comply with the trust's Igoverning documenll, the Charities Act 2011 and "Accounting and Reporting by Charities= Statement of Recommended Practice applicable lo charities preparing their accounls in accordance wilh the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021 (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 Iwslees have paid due regard lo guidan￿ 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 Irust during the year are sel 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 monlh'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 Irusl's current adivities 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 pla￿ lo mitigale exposure to the major risks. Slructure, governance and management The trust was established by a charitable Irusl 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 Mamunur Rashid Faisal Morhad Alam Mohammed Amed Uddin Aziz Miah Saiyeed Tayeedul Haque Page I TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 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. leach Ihe Islamic failh, look after the mosque and assist in the religious perfomances preparatory to the congregational prayers. They also provide advice on moral upbringing to help reduce drug-laking and other ills affecling society. The Iruslees expect to soon introduce a core curriculum syllabu5 for boys and girls. The Iruslees, report was approved by the Board of TrL¢s16es. Taz Ahmed Chairman Dated.. 23.07-4 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 Tfust (the trust) for Ihe year ended 31 December 2023. Re$ponslbilities and basis of report As Ihe trustees of the trust you are responsible for the preparation of the financial statements in accordance with the Tequirements of the Charities Act 2011 (the 2011 Acl}. 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 14515)(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 irb the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities". Statement of Recommended Praclice issued on 1 April 2005 which is referred to in the exiant regulations but has now been withdrawn. l understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepled Accounting Practice effective for reportin9 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 wrth the examination giving me cause to believe that in any material respect.. accounting records were not kept in respect of the Irust as required by section 130 of the 2011 Act., or the financial statements do not accord with those records., or the financial statements do not comply wrth the applicable requirements concerning the form and content of accounts set oul in Ihe Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a Irue 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 malters in connection with the examinalion to which attention should be drawn in this report in order to enable a proper understanding of the financial statements lo be reached. Rakibul Ahsan ACCA Dated. 2410712024 Elile Accountancy 102 Mile End Road London E14UN Page 3 c4 w TS ZS BAITUL AZIZ ISLAMIC CULTURAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policies Charity information Bailul Aziz Islamic Cultural Trust is an unincorporated charitable trust. 1. l Accounting convention The financial statements have been prepared in accordance with the trusl's constitution, the Charities Act 2011 and "Accounting and Reporting by Charilies.- Slalement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102} (effective 1 January 20191" 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 Updale Bulletin 1 not to prepare a Slalement of Cash Flows. The financial statements have departed from the Charities {Accounts and Reports) Regulations 2008 only to the extent required lo provide a Irue and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of Ihe Statement of Recommended PracliGe which is referred lo in the Regulations but which has Sin￿ 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 Ihe 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 statemenls. the trustees have a reasonable expectation that the trust has adequale resources to continue in operational existence for the foreseeable future. Thus the Iruslees continue to adopt the going concern basis of accounling in preparing the financial 1.3 Charitable funds Unrestricted funds are available for use at the discretion of the Irustees in furtherance of their charitable objectives. Restricted funds are subject to specific conditions by donors as lo how they may be used. The purposes and uses of the restricted funds are set out in the noles to the financial statemenls. Page 6 BAITUL AZIZ ISLAMIC CULTURAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 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 receipl. Other donations are recognised once the trust has been notified of the donation, unless performance conditions require deferral of the amount. Income lax 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 dislribution, the amounl is known. and receipt is expected. If the amount is not known, the legacy is treated as a conlingenl 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 assels are initially measured al cost and subsequently measured at cost or valuation, net of deprecialion and any impairment losses. Depreciation is recognised so as to write off the cosl or valuation of assets less their residual values over their useful lives on the following bases.. Land and buildings Leasehold improvements Fixtures. filtings & equipment Molor vehicles over life of over life of 100h p.a. on 10% p.a. on The gain or loss arising on the disposal of an asset is determined as the difference between the sale prO￿edS and Ihe carrying value of the asset, and is recognised in nel incomel{expendilure) for the 1.7 Impairment of lixed assets Al each reporting end date, the trust reviews the carrying amounts of its langible 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 delermine 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 wilh banks, other short-term liquid investments with original maturities of Ihree 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 ENDEO 31 DECEMBER 2023 1.9 Financial instruments The trust has elected lo apply the provisions of Section 11 'BasiG Financial Instruments, and Section 12 '0ther Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial inslrumenls are recognised in the trust's balance sheet when the trust becomes party to the contractual provisions of the instrument. Financial assets and liabililies are offset, with the net amounts presented in the financial slalements, when there is a legally enforceable right lo sel 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 balan￿s, are initially measured at transaction pri￿ including transaction costs and are subsequently carried al 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 receipls discounted at a market rate of interest. Financial assets classified as re￿iVable within one year are not amortised. Basic financial Ilabilities Basic financial liabilities. including creditors and bank loans are initially recognised al transaction price unless the arrangement constitutes a financing Iransaclion. where the debt instrument is measured al the present value of the future payments discounled at a market rate of interest. Financial liabilities classified as payable within orbe year are not amortised. Debt instruments are subsequently carried at amortised cosl. using the effective interest ral6 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 liabililies. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cosl using the Derecognition of flnancial liabilities Financial liabilities are derecognised when the trust's contractual obligations expire or are discharged or cancelled. I. 10 Retiremenl bgnefits Payments to defined contribution retirement benefit schemes are charged as an expense as Ihey fall due. Page 8 BAITUL AZIZ ISLAMIC CULTURAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Crltlcal accounting estimates and judgements estimates and assumptions aboul 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 thal are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions lo 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 (4 ¢ N 111-11 o ff) o) ( orDNco *U)r G> co r N 111 wz ¢vO£ N Lutt U<