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2021-03-31-accounts

WORTHING ISLAMIC SOCIAL AND WELFARE SOCIETY

REGISTERED CHARITY NUMBER: 294050

TRUSTEES’ REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

CONTENTS

Pages 1 – 6 Trustees’ Annual Report Page 7 Independent Examiner’s Report Page 8 Statement of Financial Activities Page 9 Balance Sheet Page 10 - 13 Notes to the Accounts

WORTHING ISLAMIC SOCIAL AND WELFARE SOCIETY REGISTERED CHARITY NUMBER: 294050

TRUSTEES’ ANNUAL REPORT 31 MARCH 2021

The Society’s Trustees present their report together with the independently examined accounts for the year ended 31 March 2021.

SOCIETY’S OBJECTS

The principal objects of the Society are the advancement of the Islamic faith and the relief of poverty, i.e. by offering help and assistance to widows and widowers, the elderly, the disabled, the unemployed and the under-privileged generally, in whatever way possible, and by helping to arrange and attend to the burial of any deceased members of the Muslim Community and to assist the bereaved generally.

ORGANISATION

The Society carries out its objectives at the Worthing Islamic Cultural Centre. The Trustees determine the general policy of the running of the Worthing Islamic Cultural Centre. The day to day management of the Worthing Islamic Cultural Centre is delegated to the Imam.

PUBLIC BENEFIT

The current activities of the Society are detailed in the Trustees’ Annual Report. The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s guidance on public benefit when reviewing the Society’s aims and objectives and in planning its future activities. The Society constitutes a public benefit entity as defined by the FRS 102.

POLICY

The policies of the Society are driven by its objectives. Policies also take into account current legislation relating to Charities. The Centre makes its facilities available to the local Muslim community and, in addition, opens its doors to the wider community (i.e. educational visits by local schools, local church groups, local cubs & scouts, etc.).

STATUS AND ADMINISTRATION

The Worthing Islamic Social and Welfare Society is governed by a Constitution adopted by resolution dated 17 November 1985 (as revised and ratified by full membership at AGM 2014) and being registered with the Charities Commission, is required to comply with the Charities Act. Its principal address is Worthing Islamic Cultural Centre, Ivy Arch Road, Worthing, West Sussex. BN14 8BX

FINANCIAL RESULTS

The accounts comply with the Charities Act 2011 and the Statement of Recommended Practice “Accounting and Reporting by Charities” preparing their accounts in accordance with the Financial Reporting Standard (FRS102) applicable in United Kingdom and Republic of Ireland.

The results for the year are set out in the Statement of Financial Activities on page 8.

Page 1

WORTHING ISLAMIC SOCIAL AND WELFARE SOCIETY REGISTERED CHARITY NUMBER: 294050

TRUSTEES’ ANNUAL REPORT 31 MARCH 2021

REVIEW OF THE SOCIETY’S YEAR

In the year ended 31 March 2021, the Society received £107,099 (2020: £158,735), in donations, madrasah fees, grants, subscriptions etc., and spent £91,090 (2020: £87,716) leaving an overall surplus of £16,009 (2020: £71,019). During the year the Society successfully fulfilled many of its core objectives as far as was possible within Covid Guidelines, some of which are mentioned below:

Several other significant events also took place during the year, as follows:

  1. The children’s Madrassa continues to flourish under the dedicated leadership of Imam Idris Nawab with the help of the teachers and several volunteers. A total of 106 (2020: 98) children are now on the Madrassa register and an average of 90 (2020: 83) regularly attend.

  2. In addition to the daily Quran and Islamic Study classes, the following events took place: a. Individual student progress reports sent out to parents. b. Teachers recruited to help and support Imam Idris with the children’s classes.

  3. The maintenance of an on-line document repository for the secure archiving of all Society related documents.

  4. The internet domain names www.worthingmasjid.co.uk and www.worthingmasjid.com continued to be formally reserved by the centre. The new Masjid website continues to offer many facilities including:

  5. a. Real-time display of Jama’at times throughout the year

  6. b. Information about forthcoming events and talks at the centre.

  7. c. Downloadable prayer timetables for the year.

  8. d. Downloadable online documents such as the constitution and gift aid/bankers order forms, visitor guidelines and timetables.

  9. e. ‘How to Find Us’, ‘About us’ and ‘Services’ sections.

  10. Successfully organised the Eid-ul-Fitr and Eid-ul-Adha congregational prayers in the park, ensuring that the Sunnah of offering Eid Salah outdoors are observed and made available to the Worthing Muslim community.

  11. Throughout the year we welcomed various local community/religious groups, schools, scouts/cubs and other groups to the Masjid. The Imam also visited local schools to give talks on Islam. He has also been invited and now sits on the Board of “SACRE”; which is the body responsible for religious education for schools in Sussex.

  12. As can be seen in the Accounts, this year the Masjid claimed back income tax on gift aid donations totalling £4,500 (2020: £6,810).

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WORTHING ISLAMIC SOCIAL AND WELFARE SOCIETY REGISTERED CHARITY NUMBER: 294050

TRUSTEES’ ANNUAL REPORT 31 MARCH 2021

  1. A key fob and door entry procedure is kept in operation, thereby improving Masjid security whilst at the same time allowing freer use of the Masjid facilities.

  2. COVID-19 Poverty Relief Programme

The COVID-19 pandemic exacerbated the challenges faced by many of the most vulnerable people in our local community, including the elderly, struggling families, homeless people and those affected by mental and physical illness and disability. At the same time, many local charities were struggling to cope with the increased demand while also suffering from decreased income. In response, Worthing Islamic Social and Welfare Society initiated an urgent COVID-19 Poverty Relief Programme to provide financial support, food, clothing and other essentials to local people of all faiths affected by the pandemic.

Working with local charities and community groups we were able to reach those most in need by tapping into existing networks, while at the same time providing much-needed support to valuable community services which many people rely on. Thanks to funding from the ZVM Rangoonwala Foundation UK (Charity Reg. No. 271513), we were able to expand this important programme of relief throughout 2020 to provide on-going support to those struggling with poverty and hardship. In total, we distributed £10,000 through 10 local groups, helping approximately hundreds of people in Worthing and the surrounding areas. In 2021, as the effects of the pandemic continued, we were able to continue this support, and have recently received additional funding from the ZVM Rangoonwala Foundation UK to extend the programme in 2022.

A full list of organisations supported through the Programme can be found below:

Page 3

WORTHING ISLAMIC SOCIAL AND WELFARE SOCIETY REGISTERED CHARITY NUMBER: 294050

TRUSTEES’ ANNUAL REPORT 31 MARCH 2021

RESERVES POLICY

Unrestricted funds at 31 March 2021 were £356,684 (2020: £377,537) of which £293,916 (2020: £297,745) was invested in tangible fixed assets for use by the Society. The Society therefore had a surplus of free reserves at 31 March 2021 of £62,768 (2020: £79,792), mainly represented by cash at bank and in-hand and debtors and prepayments.

The Trustees have determined that the priorities for the coming year are:

The trustees are aware that the level of the Society’s financial reserves must be maintained which means that various fund-raising efforts will have to be organized to ensure the required finance are available to meet the objectives above.

RISK MANAGEMENT

The Trustees continue to keep the Society’s activities under review, particularly in relation to major risks that may arise from time to time, and to monitor the effectiveness of the systems of internal controls and other viable means, including insurance cover where appropriate, by which those risks already identified by the Trustees can be best mitigated.

SOCIETY’S TRUSTEES

The Trustees who served during the year to 31 March 2021 were:

Ali Abdul Rahman Chairman
Aksar Uddin Sikder Deputy Chairman
Liton Chowdhury Treasurer (stepped down on 19 December 2021)
Fokar Uddin Ahmed Assistant Treasurer
Imran Hafeez Secretary
Nadeem Khan Assistant Secretary
Sarmad Jamal
Sultan Ahmed (stepped down on 19 December 2021)
Abdullah Mokul
Yakoub Purches (stepped down on 19 December 2021)
Mohammad Abdul Khahar
Mamounur Sheikh Rahman (stepped down on 19 December 2021)
Raza Khan
Shaheenur Rahman (stepped down on 30 June 2021)

Election to the Society’s Board of Trustees is for a period of two years, at which time all shall stand down. Election shall be by ballot of all the fully paid members.

Page 4

WORTHING ISLAMIC SOCIAL AND WELFARE SOCIETY REGISTERED CHARITY NUMBER: 294050

TRUSTEES’ ANNUAL REPORT 31 MARCH 2021

SOCIETY’S CUSTODIAN TRUSTEES

The current Custodian Trustees for the Society are:

[1] Abdul Hadi Khabbazeh; [2] Abdul Fatah Fansa; [3] Khalid Hasan; [4] Jamal Ahmed Khan; and [5] Aksar Uddin Sikder

The Register of Custodian Trustees, which according to the Society’s constitution must be reviewed every five years, was last reviewed at the Monthly Executive Committee Meeting held on 13 January 2019. The next review must therefore be done before 13 January 2024.

SOCIETY’S MAIN AGENTS AND ADVISORS

Bankers: HSBC Bank plc. 16 Goring Road, Worthing,
West Sussex. BN12 4AW
Solicitors: Rosemary Hensby, 20 Mulberry Lane, Goring-
by-Sea, West Sussex, BN12 4NS
Independent Examiner: Forhad Monsur, MAAT ACCA, No. 5 Station
Parade,TarringRoad,Worthing. BN11 4SS

TRUSTEES’ RESPONSIBILITIES

The trustees are responsible for preparing the annual report and accounts in accordance with the applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare accounts for each financial year, which give a true and fair view of the state of affairs of the society and of the incoming resources and application of resources of the Society for that year. In preparing those accounts, the trustees are required to: -

The trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the society and to enable them to ensure that accounts comply with Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations 2008 and the charity’s governing document. They are also responsible for safeguarding the assets of the society 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 charity and financial 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.

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WORTHING ISLAMIC SOCIAL AND WELFARE SOCIETY REGISTERED CHARITY NUMBER: 294050

TRUSTEES’ ANNUAL REPORT 31 MARCH 2021

THE IMPACT OF THE COVID-19 PANDEMIC

On the 23rd March 2020, just a week before the start of this Financial Account year, strict Covid-19 lockdown rules were announced for the entire United Kingdom. A day before, in anticipation of the announcement the doors of the Centre were closed to the general public and all public worship was suspended. The teaching staff and the Assistant Imam were placed on Furlough. The Principal Imam was kept on the payroll as he was instructed to publicly broadcast and establish the prayers in accordance with the requirements of our faith. He also kept in regular contact with the vulnerable members of our society and held online classes for the Madrasah children. At the time of writing this Report (January 2022), the Centre is now fully open.

INDEPENDENT EXAMINER

At the last Annual General Meeting, Forhad Monsur MAAT, ACCA, was appointed as the Society’s Independent Examiner.

Signed for and on behalf of the Society’s Trustees by:

__ __ __ Ali Abdul Rahman Imran Hafeez Mamunur Basher Chairman Secretary Treasurer Date:

Page 6

WORTHING ISLAMIC SOCIAL AND WELFARE SOCIETY REGISTERED CHARITY NUMBER: 294050

Independent Examiner’s Report to the Trustees of ‘Worthing Islamic Social and Welfare Society’

I report to the Society’s Trustees on my examination of the accounts of the ‘Worthing Islamic Social and Welfare Society’ for the year ended 31 March 2021, which are set out on pages 8 to 13.

Respective responsibilities of trustees and examiner:

The trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed

It is my responsibility to:

Basis of independent examiner’s statement:

My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.

In connection with my examination, no matter has come to my attention to indicate that: • accounting records have not been kept in accordance with section 130 of the 2011 Charities Act;

• the accounts do not accord with such records:

• where accounts are prepared on an accruals basis, whether they fail to comply with relevant accounting requirements , or are not consistent with the Charities SORP (FRS102)

Mr. Forhad Monsur MAAT, ACCA

Independent Examiner

Date:

Page 7

WORTHING ISLAMIC SOCIAL AND WELFARE SOCIETY REGISTERED CHARITY NUMBER: 294050

STATEMENT OF FINANCIAL ACTIVITIES (including income and expenditure account) FOR THE YEAR ENDED 31 MARCH 2021

Notes
Income from:
Donations received
2
Investment Income(Rental income)
Subscriptions
Income tax refund
Madrassah fees
Home receivers
Furlough Grant
Rangoonwala funds
Zakat, Fitrah and Sadaqa
7
Other income
Total income
Expenditure:
Expenditure on charitable activities:
Wages and salaries
9
Rent
General and water rates
Building insurances
Light and heat
Repairs and renewals
Cleaning
Postage and stationery
Donations made
Telephone
Islamic books
Payroll services
Accountancy
Bank charges
Home receiver expenses
Covid expenses
Rangoonwala expenses
Sundry expenses
Depreciation - building
Depreciation - equipment
Total expenditure
Net income/(expenditure) and net
movements in funds for the year
Transfer of funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
Restricted
£
-
10,000
1,185
11,185
1,185
10,000
11,185
-
36,862
243,655
280,517
Unrestricted
£
32,203
12,000
8,995
4,500
14,183
235
13,514
-
10,284
95,914
40,285
13,200
2,950
1,574
3,975
2,396
953
807
-
898
433
645
500
5
100
1,359
5,996
1,651
2,178
79,905
16,009
(36,862)
377,537
356,684
Total
31.3.21
32,203
12,000
8,995
4,500
14,183
235
13,514
10,000
1,185
10,284
107,099
40,285
13,200
2,950
1,574
3,975
2,396
953
807
1,185
898
433
645
500
5
100
1,359
10,000
5,996
1,651
2,178
91,090
16,009
-
621,192
637,201
Total
31.3.20
£
104,011
12,000
1,850
6,810
23,240
4,810
-
-
6,014
-
158,735
26,298
13,200
3,489
1,510
3,100
4,925
1,331
1,273
18,491
797
934
305
500
-
-
-
-
7,769
1,651
2,143
87,716
71,019
-
550,173
621,192

Page 8

WORTHING ISLAMIC SOCIAL AND WELFARE SOCIETY REGISTERED CHARITY NUMBER: 294050

BALANCE SHEET AS AT 31 MARCH 2021

Notes
FIXED ASSETS
Tangible Fixed Assets
3
Investment Property
4
CURRENT ASSETS
Debtors and prepayments
5
Cash at bank
Cash in hand
LESS: CURRENT LIABILITIES
Creditors and accruals
6
NET CURRENT (LIABILITIES)/ASSETS
Financed by:-
ACCUMULATED FUND (Page 8)
Unrestricted fund
Restricted fund
8
£
£
293,916
276,943
570,859
11,336
71,785
464
83,585
17,243
17,243
66,342
637,201
356,684
280,517
637,201
31.03.2021
£
£
297,745
276,943
574,688
8,691
52,443
2,797
63,931
17,427
17,427
46,504
621,192
377,537
243,655
621,192
31.03.2020

Approved by the Society's Trustees

…………………………………. Ali Abdul Rahman (Chairman)

………………………………… Imran Hafeez (Secretary)

………………………………… Mamunur Basher (Treasurer)

Page 9

WORTHING ISLAMIC SOCIAL AND WELFARE SOCIETY REGISTERED CHARITY NUMBER: 294050

NOTES TO THE ACCOUNTS - 31 MARCH 2021

1. ACCOUNTING POLICIES

1.1 Basis of Accounting

The financial statement have been prepared on an accruals basis under the historical cost covention, and in accordance with the Statement of Recommended Practice, "Accounting and Reporting by Charities" applicable to charities preparing their accounts in accordance with Financial Reporting Standard (FRS 102) applicable in the UK and Republic of Ireland and the Charities Act 2011. The trustees consider there to be no material uncertainties about the Charity's ability to continue as a going concern. The accounts are

1.2 Depreciation

Depreciation is calculated to write down the cost less estimated residual value of all tangible fixed assets, other than freehold land, over the period of their expected useful lives. The depreciation rates applied are as follows:

Freehold Buildings 2% per year on a straight line basis Equipment 33% per year on a straight line basis

1.3 Fixed assets

All tangible fixed assets costing more than £250 are capitalised and carried in the balance sheet at historical cost.

Donated assets are capitalised at a reasonable estimate of their value to the Society.

1.4 Fund structure

Unrestricted funds are available for use at the discretion of the trustess in furtherance of the general objectives of the charity. Restricted funds are subjected to restrictions on the expenditure imposed by the donors. Whilst some donations are received mainly for specific programmes run during the year, the trustees consider that these are unrestricted.

1.5 Income recognition

All income are included in the statement of financial activities as soon as (a) the charity is entitled to the income and (b) the amount can be quantified with reasonable accuracy.

1.6 Expenditure recognition

Expenditure is recognised on an accruals basis as a liability is incurred.

2. DONATIONS RECEIVED

Included in the donations received figure of £32,203 (2020: £104,011) are receipts totalling £12,560 (2020: £17,841) from Friday Collections, £Nil (2020: £12,477) from Charities Collections and £6,564 (2020: £5,790) from General Donations.

Page 10

WORTHING ISLAMIC SOCIAL AND WELFARE SOCIETY REGISTERED CHARITY NUMBER: 294050

NOTES TO THE ACCOUNTS - 31 MARCH 2021

3. FIXED ASSETS

COSTS
As at 31.3.20
Additions
Disposals
As at 31.3.21
DEPRECIATION
As at 31.3.20
Charge for year
On disposal
As at 31.3.21
NET BOOK VALUE
As at 31.3.21
As at 31.3.20
Land
50,000
-
-
50,000
-
-
-
-
50,000
50,000
Buildings
270,856
-
-
270,856
26,917
1,651
-
28,568
242,288
243,939
Equipment
24,932
-
-
24,932
21,126
2,178
-
23,304
1,628
3,806
Total
345,788
-
-
345,788
48,043
3,829
-
51,872
293,916
297,745
4
Investment Property
Cost
As at 31.3.20
Additions
Disposal
As at 31.3.21
Fair value gain(loss)
As at 31.3.20
As at 31.3.21
Fair Value
As at 31.3.21
As at 3103.20
Land &
Building
276,943
-
-
276,943
-
-
276,943
276,943

5. DEBTORS AND PREPAYMENTS

Rates
Gift aid tax repayment
ORS AND ACCRUALS
Interest-free loan
Water rates
PAYE & NIC
Accountancy
Donations payable
2021
£
-
11,336
11,336
2021
£
15,000
292
172
500
1,279
17,243
2020
£
1,881
6,810
8,691
2020
£
15,000
430
197
500
1,300
17,427

6. CREDITORS AND ACCRUALS

Page 11

WORTHING ISLAMIC SOCIAL AND WELFARE SOCIETY REGISTERED CHARITY NUMBER: 294050

NOTES TO THE ACCOUNTS - 31 MARCH 2021

7. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fixed Assets
Current Assets
Total net assets
Unrestricted
Funds
293,916
62,768
356,684
Restricted
Funds
276,943
3,574
280,517
Total
31.3.2021
570,859
66,342
637,201
Total
31.3.2020
574,688
46,504
621,192

8. RESTRICTED FUNDS

Building Fund
Janazah Facilities Fund
Zakat, Fitrah and Sadaqa
Rangoonwala funds
Balance at
1.4.2020
240,081
3,574
-
-
243,655
Incoming
resources
-
-
1,185
10,000
11,185
Resources
expended
& transfers
36,862
-
(1,185)
(10,000)
25,677
Balance at
31.3.2021
276,943
3,574
-
-
280,517
Balance at
31.3.2020
240,081
3,574
-
-
243,655

The Building Fund totalling £276,943 were received with a restriction imposed by the donors that these monies should only be used for future building development projects.

Zakat and Fitrah Funds are a form of specific charitable giving regulated in accordance with the tenets of the Holy Quran, to be solely used for the relief of poverty and financial hardship of Muslims wherever they may be.

The balance of the Janazah Facilities Fund totalling £3,574 were received with a restriction imposed by the donors that these monies should only be used for future janazah facilities project.

The Rangoonwala Funds totalling £10,000 were received from ZVM Rangoonwala Foundations UK with a restriction imposed by the donors that this money should only be used for the relief of hardship in the Worthing and surrounding areas.

Page 12

WORTHING ISLAMIC SOCIAL AND WELFARE SOCIETY REGISTERED CHARITY NUMBER: 294050

NOTES TO THE ACCOUNTS - 31 MARCH 2021

9. EMPLOYEES

Number of employees

The average monthly number of employees during the year was 4 (2020: 3).

Employment costs

Salaries 2021
£
40,285
40,285
2020
£
26,298
26,298

There were no employees with annual emoluments of £60,000 or more.

10. 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.

Page 13