2023-03-31-accounts - The Liverpool Muslim Society

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LIVERPOOL MUSLIM SOCIETY Registered Charity No 503822

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31[ST] MARCH 2023

Prepared By: -

The Board of Trustees Liverpool Muslim Society 29/31 Hatherley Street Liverpool L8 2TJ

LIVERPOOL MUSLIM SOCIETY REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2023

Contents	Page
Professional Advisers and Charity Information	3
Trustees’ Annual Report	4 - 8
Independent Examiner’s Report to the Trustees	9
Statement of Financial Activities	10
Summary Statement of Financial Activities	11
Balance Sheet	12
Notes Forming Part of the Financial Statements	13 - 17

LIVERPOOL MUSLIM SOCIETY REFERENCE AND ADMINISTRATIVE DETAILS YEAR ENDED 31[ST] MARCH 2023

Professional Advisers & Charity Information

Name: Liverpool Muslim Society Governing Document: The Society is governed by a constitution. The Charity registration was agreed on 2nd December 1974. The most recent revision of the constitution took place in 2010 and was adopted on 25th April 2010. Further amendments were made and approved on 13[th] September 2014. Registered Office: 29-31 Hatherley Street Toxteth Liverpool L8 2TJ Trustees: (See page 8) Bankers: NatWest Bank Plc Liverpool City Office (B) Branch 2-8 Church Street Liverpool L1 3BG Independent Examiner: Mohammed Arshad Arshads Accounting & Tax Services 12 Olivetree Road Liverpool L15 7LL

LIVERPOOL MUSLIM SOCIETY TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31[ST] MARCH 2023

The Trustees have the pleasure in presenting their Annual Report and Financial Statements for the year ended 31st March 2023.

LEGAL AND ADMINISTRATIVE DETAILS

Governing Instrument . The Liverpool Muslim Society is constituted as a registered charity in the UK and governed by a constitution.

Membership is open to interested individuals accepted into membership by the Trustees, following completion of a prescribed membership form.

Trustees. The Society's work is directed by a board of Trustees, who approve the policy for the organisation. The activities of the Society are overseen by various sub-committees and an executive team who meet as and when required and report to the Board of Trustees. The board is composed of not less than 5 nor more than 12 trustees.

Objects of the Project . The Objects are:

(a) To promote Islam as a religion by means which are charitable according to the law of England and Wales.
(b) For the public benefit, to relieve need and advance education amongst Muslim residents in the North-West of England.
(c) In the interests of social welfare, to provide or assist in the provision of facilities for recreation and other leisure-time occupation.

PUBLIC BENEFIT STATEMENT

In planning our activities, we have considered guidance from the Charity Commission to ensure we meet our public benefit requirements.

REVIEW OF THE YEAR

Activities conducted by LMS

Liverpool Muslim Society carried out a variety of activities in order to achieve its objectives during the year ended 31[st] March 2023.

Services provided by the Imams in the Masjid

The Imams continue to deliver the weekly Jumaa sermon and daily prayers. They also carry out marriage registrations, divorce services, marital consultations and bereavement support.

Schools Educational Visits

The Society hosted over 100 educational visits in the centre during the year facilitated by the Imams, staff and volunteers.

LIVERPOOL MUSLIM SOCIETY TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31ST MARCH 2023

Activities and services carried out by staff and volunteers in the Masjid

The following core services represent our unwavering commitment to meeting the holistic needs of our community members. They underscore our dedication to serving with compassion, integrity, and excellence. Example of these activities are as follows:

Al-Rahma Madrasah: Providing Islamic education for children, nurturing their spiritual growth and moral development. 200 students, 20 members of staff. Every Saturday and Sunday at 10:30am to 2:30pm.
Al-Rahma Tahfeedh - Offering Quran memorization classes to instil a deep connection with the divine words of Allah. 100 students, 10 members of staff – Every Monday, Tuesday and Wednesday from 6pm to 8pm.
Al-Rahma Youth Club: Engaging and empowering the youth through educational, social, and recreational activities. Every Sunday at 4pm. Around 50 young people gather for spiritual and recreational activities.
Al-Rahma Youth Linkup: Facilitating networking and mentorship opportunities for young Muslims to connect and thrive. Monthly programme. Youngsters from across the city are exposed to various religious and recreational activities. Meals are provided.
Marriage & Divorce Services: Supporting individuals and families through various stages of their marital journey, offering guidance and counselling. Daily service for Muslims in LCR conducted by our three Imams.
Family Counselling: Providing professional counselling services to address various familyrelated challenges and strengthen familial bonds. Family disputes and community feuds.
Al-Rahma Mosque Funeral: Assisting families during times of loss and grief, ensuring dignified and respectful funeral arrangements for their loved ones.
Ladies learning sessions - every Thursday between 10:00am and 4:00pm.
Ladies Quran classes - every Friday between 10:00am and 1:00pm.
Seerah classes for ladies on Thursdays between 6:00PM and 8:00PM.
Mother and toddler program - every Wednesday between 11:00AM and 2:30PM
Advice sessions on jobs and higher education opportunities every Friday after Jumah prayer.
Invited renowned guest speakers and scholars to deliver sessions on various topics. Some of these topics include health issues, mental health as well as religious matters.
Specialised day events were also delivered at Al-Rahma Mosque such as Hijamah and charity days.
Classes for reverts brothers and sisters every Saturday at 2pm.

LIVERPOOL MUSLIM SOCIETY TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31ST MARCH 2023

Vision 2035:

As we move forward with our vision for 2035, let us continue to strengthen and expand these essential services, ensuring that LMS remains a beacon of hope, support, and guidance for all. Together, we can make a lasting difference in the lives of those we serve.

Our vision for 2035 at Liverpool Muslim Society (LMS) is a roadmap of achievable goals aimed at advancing our charity's objectives, with the aim of becoming a Model Mosque for UK Muslims. This vision embodies a collective effort to uplift the Muslim community.

Achieve 100% self-sustainability by diversifying investments and establishing profitable income-generating endowments.
Transform into a Mosque+ (Community Hub) by constructing the Rosebery Cohesion Center to fulfil the charity's vision and mission.

We want LMS to extend beyond the traditional role of a mosque as a place of worship. We want to encompasses additional functions and services that cater to the broader needs of the Muslim community and beyond. We aim to create facilities and programs that serve not only as a place of prayer but also as a centre for education, social activities, community services, and outreach programs. This expanded role aims to make the mosque a central hub for community development, engagement, and support, addressing various needs and enhancing the overall well-being of individuals and families within the community.

Provide Islamic Ethos Education by establishing and supporting nurseries, primary, and secondary schools embracing Islamic values.

These schools would serve as centres of excellence within the community, offering extracurricular activities, community service projects, and outreach programs that further reinforce Islamic values and principles. Through these initiatives, students would develop a strong sense of identity, belonging, and purpose, preparing them to become well-rounded individuals who contribute positively to society while remaining grounded in their faith.

Establish strong Da'wah and Outreach Platforms with robust and sustainable communication channels, both online and on-ground.
Expand national and international relations by fostering strong donor relations and partnerships with local, national, and international bodies.

Expand national and international relations by cultivating robust donor relationships and forging strategic partnerships with a wide range of stakeholders, including local, national, and international organizations.

LIVERPOOL MUSLIM SOCIETY TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31ST MARCH 2023

HUMANITARIAN APPEAL

Al-Rahma Mosque continues to support charities deliver services to disadvantaged communities both in the UK and abroad. Collections were made for more than 10 different UK registered charities during the blessed month of Ramadan and at different occasions.

RESULTS FOR THE YEAR

The results for the year are set out on the finance pages following this report.

RESERVES POLICY

The trustees maintain a buffer of free reserves equivalent to at least two months of annual core expenditure. The average monthly expenditure is estimated to be approximately £25,000 therefore the target reserve is approximately £50,000. This target is now met and will form the baseline for any future spending program.

LMS is always on the look out to maximize the organization’s income. The board regularly reviews the financial position of the organization to ensure the optimum utilization of the charity’s funds to maintain financial stability. Several new venues of generating income have been introduced to support the fundraising mechanism at the society.

RISK

The major challenge the organization faces is raising sufficient funds to pay for its expenses. The trustees have procedures in place designed to mitigate these potential risks. The financial position of the Society and the level of risk are assessed on regular bases.

FINANCIAL REVIEW

During the period, the Society continued to raise funds to meet its financial commitments and to support ongoing and new projects. The organization actively sought new venues to maximize on its income generating activities during the period. Examples of such venues are new approaches to better engage with the donors and facilitating new ways of collecting donations. This has enabled the Society to raise funds to refurbish N3 Hatherley Street. Donations were also collected to for a new carpet. The Mosque’s three floors were fitted with a new carpet.

THE FUTURE

The board of trustees continued to explore venues to increase income, reduce expenses and enhance services provided to the community in line with the activities of the old board of trustees. Listed below are projects planned for the next financial year but some of them have already been started.

LMS purchased the property No 27 Hatherley Street in January 2020 and plans to refurbish it fully in the next financial year.
LMS plans to utilise the existing Rosebery yard as a prayer hall. The plan is to make this space useable as a prayer hall.
LMS plans to replace the aging sound system in the coming financial year.
LMS plans to establish the first Muslim Girl School in Liverpool.
LMS plans to expand its portfolio of properties.
LMS plans to refurbish the funerals area and invest in the funeral service we provide.
LMS plans to modernise the mimbar area.

LIVERPOOL MUSLIM SOCIETY TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31[ST] MARCH 2023

BOARD OF TRUSTEES

The trustees who were elected, co-opted, resigned. retired and/or served during the year are as follows:

Dr Badr Abdullah (Chairman) Mr Shams ul Haque Khan Mr Ismail Saleh (Vice Chairman) Mrs Asmaa Al-Thubhani Mr Marwan Gawher (Treasurer) Dr Thamir Ismail Dr Mohamed Mahyoub (Secretary) Mr Abdulaziz Hamid (co-opted) Mr Ethiyan Aseem Ahmad (resigned)

TRUSTEES’ RESPONSIBILITIES IN RELATION TO FINANCIAL STATEMENTS

The trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations. Charity law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of affairs of the charity and of its net incoming or outgoing resources for that period. In preparing these financial statements the trustees are required to:

Select suitable accounting policies and then apply them consistently;
Make judgements and estimates that are reasonable and prudent;
Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with SORP 2005. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

APPROVAL

The report was approved by the Board of Trustees and signed on its behalf on 12[2h] July 2024.

Badr Abdullah Trustee (Chairman)

Marwan Gawher Trustee (Treasurer)

Registered Office: 29/31 Hatherley Street Liverpool L8 2TJ

Independent Examiner's Report To the board of trustees of Liverpool Muslim Society on the financial statements for the year ended 31 March 2023. I report on the accounts of the charity for the year ended 31" March 2023. which are set out on Pages 10-17. Respective responsibilities of trustees and examiner The Charity's trustees are responsible for the preparation of the accounts. The tharity's trustees consider that an audit is not required for this year under section 144121 of the Charities Act 2011 and that an independent examination is reqLJired. It is my responsibility to.. al examine the accounts under section 145 of the 2011 Act bl to follow the procedures laid down in the general directions given by the Charity Commission under section 14515llbl of the 2011 Act,. and CI to State whether particular matters have corne to my attention Basis of Independent Examiner's report My examination was carried out in accordance with the 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 item5 or disclosures in the accounts and seeking explanations from you as trustees concerning any such matters. The procedure5 undertaken do not provide all the evidence that would be reqLJired 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: IrePendent Examiner's statement In connection with my examination, no matter has come to my attention.. I I I which gives me reasonable cause to believe that in any material respect the requirements.. to keep accounting records in accordance with section 130 of the 2011 Act to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act have not been met.. or 121 to which, in my opinion, attention should be drawn in order to enable a proper understanding of the ounts to be reached. Mohammad Arshad Arshads Accounting & Tax service5 12 Olivetree Road Liverpool L15 7LL 12.07.2024

LIVERPOOL MUSLIM SOCIETY STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31[ST] MARCH 2023

	Note	UNREST (£)(1)	REST (£)(2)	Total (£)	Total (£)
				2023	2022
INCOMING RESOURCES			235,654 235,654 - 257,591 257,591 (21,937) 481,104 459,167	57,090 487,496 544,586 11,849 454,323 466,172 78,414 1,868,980 1,947,394	59,681 337,094 396,775 19,544 267,015 286,559 110,216 1,868,980 1,868,980
Incoming resources from generated funds	2
Incoming resources from Charitable Activities	3
TOTAL INCOMING RESOURCES

RESOURCES EXPENDED
Costs of generating funds	9
Charitable activities	10
TOTAL RESOURCES EXPENDED
NET (OUTGOING)/INCOMING RESOURCES


Balances brought forward

Balances carried forward		1,488,227






1 - Unrestricted fund 2-Restricted fund

1 - Unrestricted fund

2 - Restricted fund

LIVERPOOL MUSLIM SOCIETY SUMMARY STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31[ST] MARCH 2023

INCOMING RESOURCES RESOURCES EXPENDED TOTAL SURPLUS	2023 2022 £ £ 544,586 396,775 (466,172) (286,559) 78,414 110,216

All of the activities of the charity are classed as continuing

LIVERPOOL MUSLIM SOCIETY BALANCE SHEET AS AT 31ST MARCH 2023

FIXED ASSETS Tangible Assets CURRENT ASSETS Debtors Prepayments Cash at bank and in hand CREDITORS: amounts falling due within one year Sundry NET CURRENT ASSETS TOTAL ASSETS FUNDS Restricted Unrestricted TOTAL FUNDS	Note 11 12 13 5 5	2023 £ £ 1,678,360 8,111 778 271,194 280,083 (11,049) 269,034 1,947,394 459,167 1,488,227 1,947,394	2022 £ £ 1,650,926 12,608 1,624 210,038 225,038 (6,984) 218,054 1,868,980 481,104 1,387,876 1,868,980

For the financial year ended 31st March 2023, the Society is entitled to be examined by an independent examiner. The governing instrument of the parent charity does not require an audit to be carried out and members have not asked for one. The trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records in accordance with section 130 of the 2011 Act; and to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act. The accounts were approved by the board of trustees on 12[th] July 2024 and signed on its behalf by:

Badr Abdullah

Marwan Gawher

Trustee (Chairman)

Trustee (Treasurer)

LIVERPOOL MUSLIM SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2023

1. ACCOUNTING POLICIES

(a) Accounting Convention

The financial statements have been prepared under the historical cost convention, and in accordance with the Statement of Recommended Practice, Accounting and Reporting by Charities (SORP 2005) issued in March 2005 and applicable UK Accounting Standards and the Charities Act 1993.

(b) Depreciation

Depreciation is calculated to write off the cost of fixed assets, less estimated residual value, over their estimated useful economic lives on the following basis: -

Properties	2%	straight line
Portacabin	10%	reducing balance
Equipment, Furniture, Fixtures & Fittings	20%	reducing balance
Books & Reference Materials	15%	reducing balance

(c) Incoming Resources

Investment income is recognized on a receivable basis.

Income from charitable activities includes donations from members, zakat and hall hire. Income from charitable activity is deferred when a payment is received in advance for the following financial period.

(d) Resources Expended

Expenditure is recognized when a liability is incurred.

Charitable activities include expenditure associated with Masjid activities, education, health, sports, social, welfare and recreation activities and include both the direct costs and support costs relating to these activities.
Management and Administration costs include those incurred in the management and administration of the Masjid, including governance of the parent charity and its assets and are primarily associated with constitutional and statutory requirement.

(e) Fund Accounting

Funds held by the charity are either:

Unrestricted general funds – these are funds which can be used in accordance with the charitable objects at the discretion of the trustees.
Restricted funds – these are funds that can only be used for restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for a particular restricted purpose. Further explanation of the nature and purpose of each fund is included in the notes to the accounts.

(e) Taxation

The Society is a registered charity and is not subject to UK corporation tax

(f) Value Added Tax

The Charity is registered for value added tax but may de-registering in the near future.

LIVERPOOL MUSLIM SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2023

		UNREST (£)	UNREST (£)	UNREST (£)		REST (£)	Total Funds (£)	Total Funds (£)	Total Funds (£)	Total Funds (£)	Total Funds (£)	Total Funds (£)
								2023			2022
	INCOMING RESOURCES
2	Incoming resources from generated funds
	Investment Income			57,090		-			57,090			59,681
				57,090		-			57,090			59,681

3	Incoming resources from Charitable Activities
	Humanitarian Appeal Fund			-		75,734			75,734			21,639
	Building Project Fund			-		18,450			18,450			15,860
	Zakat Fund			-		22,680			22,680			19,237
	Education & Daawah			-		55,924			55,924			55,389
	Ramadan Iftar Fund			-		12,485			12,485			8,856
	General Donations		251,842					251,842			169,222
	Funeral Fund		-			50,381			50,381			46,891
			251,842		235,654			487,496			337,094

	TOTAL INCOMING RESOURCES		308,932		235,654			544,586			396,775

4	NET INCOMING RESOURCES							2023			2022
	The net incoming resources is stated after charging:								£			£
	Depreciation								55,224			39,770

5	ANALYSIS OF FUND BALANCE BETWEEN
	THE NET ASSETS	UNREST (£)			REST (£)			Total Funds (£)		Total Funds (£)
								2023		2022

	Tangible fixed asset	1,281,677			396,683		1,678,360			1,650,926
	Current asset		217,599		62,484			280,083		225,038
	Current liabilities		(11,049)		-			(11,049)				(6,984)
	FUND BALANCE	1,488,227			459,167		1,947,394			1,868,980

LIVERPOOL MUSLIM SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2023


6	STAFF COSTS(including trustees)	2023	2022
		£	£
	Salaries & wages	27,689	-
		-

	The average number of employees (including trustees)	employed by the charity during the year
	were:-
		2023	2022
		23	8

		2023	2022
		23	8

7	VOLUNTEERS EXPENSES
		2023	20222
	Volunteers Expenses	44,235	58,208

8	TRUSTEES REMUNERATIONS AND EXPENSES

8 TRUSTEES REMUNERATIONS AND EXPENSES No remuneration or reimbursement of expenses has been made or is due to be made to any of the trustees in respect of the period.

		UNREST	REST	Total	Total
		(£)	(£)	Funds (£)	Funds (£)
	RESOURCES EXPENDED			2023	2022
9	Costs of generating funds
	Repairs & Renewal	3,898	-	3,898	11,318
	Cleaning & Sanitation	499	-	499	283
	Council tax	4,699	-	4,699	5,586
	Heating & Lighting	1,265	-	1,265	1,001
	Insurance	1,488	-	1,488	1,356
		11,849	-	11,849	19,544

LIVERPOOL MUSLIM SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2023


		UNREST (£)		REST (£)	Total Fund (£) 2023		Total Fund (£) 2022
10	Charitable Activities
	Humanitarian Appeal		-	75,734		75,734		26,079
	Hardship Relief		-	-		-		1,883
	Wages and Salaries		11,981	15,708		27,689		-
	Subscriptions		2,862	-		2,862		375
	Volunteers'Expenses Tahfeedh		-	17,503		17,503		29,754
	Zakat & Eid Gifts		-	25,487		25,487		17,666
	Volunteers'Expenses Madrassah		-	26,732		26,732		28,454
	Food & Serving Materials for Iftar		-	20,168		20,168		6,783
	Heating & Lighting		19,465	-		19,465		5,312
	Repairs & Renewals		71,660	-		71,660		25,468
	Professional & Legal		2,600	-		2,600		1,046
	Education & Daawah		-	26,373		26,373		11,776
	Youth Activities		3,475	-		3,475		-
	Printing, Stationery & Books		1,386	5,769		7,155		2,222
	Insurance		4,562	-		4,562		5,559
	Business & Water Rates		3,729	-		3,729		2,042
	Cleaning & Sanitation		950	-		950		1,967
	Bank Service Charges		3,556	-		3,556		2,601
	Sundries		7,902	-		7,902		3,696
	Telephone & Internet		1,629	-		1,629		1,148
	Bad Debts		3,182	-		3,182		3,945
	Compensation		-	-		-		8,000
	Depreciation		55,224	-		55,224		39,770
	Equipment Hire		283	-		283		2,120
	Computer & IT costs		-	-		-		660
	Expenses for Eid in the park		-	-		-		1,770
	Visitors & Volunteers refreshments		2,286	-		2,286		1,947
	Funeral Services		-	44,117		44,117		34,972
			______	______		______		______
			196,732	257,591		454,323		267,015

	TOTAL EXPENDED RESOURCES		208,581	257,591	466,172,			286,559

LIVERPOOL MUSLIM SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2023

11	TANGIBLE FIXED ASSETS	Properties	Properties	Properties	Portacabin	Books & Ref Materials	Books & Ref Materials	Equipment Fixtures & Fittings	Equipment Fixtures & Fittings	Equipment Fixtures & Fittings	Total	Total	Total	Total
	COSTS	£			£	£		£			£
	At 1st April 2022	1,689,944			15,813	11,362		204,506			1,921,625
	Additions							82,658			82,658
	At 31st March 2023	1,689,944			15,813	11,362		287,164			2,004,283

	DEPRECIATION
	At 1St April 2022			67,598	11,347		3,841	187,913				270,699
	Charge for the year			33,799	447		1,128		19,850				55,224
	At 31st March 2023		101,397		11,794		4,969	207,763				325,923

	NET BOOK VALUE
	At 31st March 2023	1,588,547			4,019		6,393	79,401			1,678,360

	At 31st March 2022	1,622,346			4,466		7,521	16,593			1,650,926

								2023			2022
12	DEBTORS								£				£
	Sundry Debtors									8,111			12,608
	Prepayments									778				1,624
										8,889			14,232

										2023				2022
13	CREDITORS									£				£
	Amount falling due within one year
	Salaries & Wages									3,490				1,500
	Sundry Creditors									2,807				1,658
	Accruals									4,752				3,826
									11,049					6,984
13	TAXATION
	No provision for taxation has been made as the Society is a registered charity.

14	GENERAL FUND
	As the Charity is an un-incorporated entity, the liabilities of trustees are unlimited.