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2024-03-31-accounts

Charity Registration Number: 514781

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF METRO LEEDS

Annual Reports and Financial Statements

For the Year Ended 31[st] March 2024

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF METRO LEEDS

Contents

Page
Trustees' Report 1
Statement of Trustees' responsibilities 2
Accountants' report 3-4
Statement of Financial Activities 5
Balance sheet 6
Notes to the accounts 7-10

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF METRO LEEDS

The report of the trustees for the year ended 31 March 2024

Introduction

The trustees present their annual report and accounts for the year ending 31st March 2024.

The board of trustees are satisfied with the performance of the charity during the year and the position at 31st March 2024 and consider that the charity is in a strong position to continue its activities during the coming year, and that the charity's assets are adequate to fulfil its obligations.

Name, registered office and constitution of the charity

Date of formation 15/02/1984 The Principal Office is 166 Shadwell Lane, Leeds, LS17 8AD. Charity Registration Number 514781 Email info@baabulilm.co.uk

A summary of the objects of the charity as set out in its governing document.

To promote the advancement of religion in accordance with the doctrines of the Khoja Shia Ithna-Asheri muslim faith, as well as providing education and leisure activities, in the interest of social welfare to members of the Khoja Shia Ithna-Asheri muslim.

Public benefit that is provided by the charity

We have referred to the guidance contained in the Charity commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities.

Structure, Governance and Management

Board of Trustees

The property of the community shall be held in the name of four individuals as trustees who shall administer the same in all respect in accordance with the directions of the managing committee. Members of Board of Trustees are: -

Mr. Rashid Bhamani

Mr. Sameer Patel Mr. Rasool Bhamani Dr. Salim Meghjee

Management committee

The affairs of the community shall be administered by a managing committee which includes: -

Mr. Rasool Bhamani - President

Mr. Sameer Patel Hon - Secretary

Mr. Rashid Bhamani - Treasurer

Mr. Salim Meghjee – Committee Member

Mr. Mohammad Raza Bhamani – Committee Member

Mrs. Fatim Patel - Committee Member Mrs. Maliha Fazal - Committee Member

Independent Examiner

Ishfaq Shah (AFA MIPA) Lyel Accountants Annexe G, Oaktree House, 408 Oakwood Lane, Leeds LS8 3LG

1

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF METRO LEEDS

The report of the trustees for the year ended 31 March 2024

Statement of Trustees' Responsibilities

The Charities Act requires the Board of Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity as at the end of the financial year and of the surplus or deficit of the charity. In preparing those financial statements the Board is required to:-

The Trustees are also responsible for maintaining adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which are sufficient to show and explain the charity's transactions and enable them to ensure that the financial statements comply with regulations made under the Charities Act. 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.

The trustees are also responsible for the contents of the trustees' report and the

responsibility of the independent examiner in relation to the trustees' report is limited to examining the report and ensuring that, on the face of the report there are no inconsistencies with the figures disclosed in the financial statements.

This report was approved by the board of trustees on _______.

Mr. Rasool Bhamani President

2

Report of the Independent Examiner to the trustees on the accounts of the Charity for the year ended 31 March 2024

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF METRO LEEDS

I report on the financial statements of the Charity on pages 7 to 12 for the year ended 31 March 2024 which have been prepared in accordance with the Charities Act 2011 and with the Financial Reporting Standard for Smaller Entities (FRSSE), effective April 2008, adapted to meet the needs of unincorporated organisations, as modified by the Statement of Recommended Practice for Accounting and Reporting issued by the Charity commissioners for England & Wales, effective April 2005 as revised in June 2008. (The SORP), under the historical cost convention and the accounting policies set out on page 12.

Respective responsibilities of trustees and examiner

As described on page 2, the Charity's trustees are responsible for the preparation of the financial statements. The trustees are satisfied that the audit requirement of Section 144 (1) of the Charities Act 2011 (the Act) does not apply, and that there is no requirement in the governing document or constitution of the Charity for the conducting of an audit. Consequently, the trustees have elected that the financial statements be subject to independent examination.

Having satisfied myself that the charity is not subject to audit, and is eligible for independent examination, it is my responsibility to: -

a) examine the accounts under section 145 of the Charities Act;

b) to follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the Charities Act; and;

c) to state whether particular matters have come to my attention.

Basis of opinion and scope of work undertaken

I conducted my examination in accordance with the General Directions given by the Charity Commissioners for England & Wales in relation to the conducting of an independent examination, referred to above. An independent examination includes a review of the accounting records kept by the Charity and of the accounting systems employed by the Charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements and seeking explanations from you as trustees concerning such matters. The purpose of the examination is to establish as far as possible that there have been no breaches of the Charities legislation and that the financial statements comply with the SORP, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements.

The procedures undertaken do not provide all the evidence that would be required in an audit, and information supplied by the trustees in the course of the examination is not subjected to audit tests or enquiries, and consequently I do not express an audit opinion on the view given by the financial statements, and in particular, I express no opinion as to whether the financial statements give a true and fair view of the affairs of the charity, and my report is limited to the matters set out in the statement below.

I planned and performed my examination so as to satisfy myself that the objectives of the independent examination are achieved and before finalizing the report, I obtain written assurances from the trustees of all material matters.

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF METRO LEEDS Independent Examiner's Statement, report and opinion - Continued

Subject to the limitations upon the scope of my work as detailed above, in connection with my examination, I can confirm that this is a report in respect of an examination carried out under section 145 of the Act and in accordance with any directions given by the Commission under subsection (5)(b) of that section which are applicable;

and that, no matter has come to my attention in connection with my examination which gives me reasonable cause to believe that in any material respect the requirements

(i) to keep accounting records in accordance with section 130 of the Act;

(ii) to prepare financial statements which accord with the accounting records and comply with the accounting requirements of the Act and;

(iii) that the financial statements be prepared in accordance with the methods and principles set out in the Statement of Recommended Practice - Accounting and Reporting by Charities

have not been met; or

to which, in my opinion, attention should be drawn in my report in order to enable a proper

understanding of the accounts to be reached;

Independent examiner

Ishfaq Shah (AFA MIPA) Lyel Accountants Annexe G, Oaktree House, 408 Oakwood Lane, Leeds LS8 3LG

The date upon which my opinion is expressed is __

4

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF METRO LEEDS

Statement of Financial Activities for the year ended 31 March 2024

Notes
Income and Endowments from:
Charitable activities12
Investment income12
Total income
Expenditure on:
Charitable activities13
Investment expenses
Governance cost13
Total expenditure
Net incoming resources
before transfers between funds
Gross transfers between funds
Net incoming resources before
Other recognised gains and losses
Other recognised gains and losses
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total Funds carried forward11		 Unrestricted
Funds
Restricted
Funds
Total Funds
Last Year
Total Funds
2024
2024
2024
2023
£
£
£
£
140,027
8,440
-
-
140,027
8,440
104,538
9,324
148,467
-
148,467 113,862
82,757
456
-
82,757
456
57,291
2,747
1,000
-
1,000
1,000
84,213
-
84,213
61,038
64,254 -
64,254
52,824
-
-
-
-
64,254
-
64,254
52,824
-
-
-
-
64,254
-
64,254
52,824
396,935
1,096,149
1,493,084
1,440,260
461,189
1,096,149
1,557,338
1,493,084

The net movement in funds referred to above is the net incoming resources as defined in the SORP and is reconciled to the total funds as shown in the Balance Sheet on page 9 as required by the SORP.

All activities derive from continuing operations.

The notes on pages 7 to 10 form an integral part of these accounts.

5

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF METRO LEEDS Balance Sheet as at 31 March 2024

Notes
Fixed assets
Tangible assets
8
Total fixed assets
Current assets
Debtors
Cash at bank and in hand
amounts due within one year
9
Net current assets
Total assets less current liabilities
Creditors:
amounts due after more than one year
10
Net Assets
Funds of the Charity:
Unrestricted funds
Restricted funds
Total Funds
11		 -
94,924
(6,500)		 2024
£
1,556,131		 456
69,734
(3,630)		 2023
£
1,538,741
1,556,131
88,424		 1,538,741
66,560
1,644,555
(87,217)		 1,605,301
(112,217)
1,557,338 1,493,084
461,189
1,096,149
1,557,338		 396,935
1,096,149
1,493,084

The accounts have been prepared in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008)

Mr. Rasool Bhamani President

Approved by the board of trustees on _______

The notes on pages 7 to 10 form an integral part of these accounts.

6

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF METRO LEEDS

Notes to the Accounts for the year ended 31 March 2024

1 Accounting policies

Basis of preparation of the accounts

The financial statements have been prepared in accordance with the Financial Reporting Standard for Smaller Entities (FRSSE), effective April 2008, and all other applicable accounting standards, as modified by the Statement of Recommended

Practice for Accounting and Reporting issued by the Charity Commissioners for England & Wales, (revised June 2008) (The SORP) adapted to meet the needs of unincorporated organisations. The accounts have been drawn up in accordance with the provisions of the Charities (Accounts and Reports) Regulations 2008 Acts and include the results of the charity's operations which are described in the Trustees' Report, all of which are continuing. Insofar as the SORP requires compliance with specific Financial Reporting Standards other than the FRSSE then the specific Financial Reporting Standards have been followed where their requirements differ from those of the FRSSE.

Accounting Convention

The financial statements are prepared, on a going concern basis, under the historical cost convention as modified by the revaluation of freehold land and buildings and fixed asset investments.

Expenditure

All expenditure is recognized once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading those aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings, they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets costing £0.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Freehold charitable and investment property, land and buildings, are revalued every year to open market value using an independent professional valuer.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Land and Buildings - Not depreciated.

Plant and Machinery - 25% Reducing balance method.

7

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF METRO LEEDS Notes to the Accounts for the year ended 31 March 2024 - Continued

Trade debtors

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Recognition of liabilities

Liabilities are recognized on the accruals basis in accordance with normal accounting principles, modified where necessary in accordance with the guidance given in the

2 Expenses paid to trustees or connected persons.

No expenses were paid to trustees or persons connected with them.

3 Trustees' Remuneration

Neither the trustees nor any persons connected with them have received any remuneration, either in the current year or the prior year.

4 Adjustment for grant income

The Qarz-ul-Hasana received in previous years is reallocated from balance sheet to income account over the years.

5 Taxation

The charity is a registered charity and is therefore exempt from taxation.

6 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Wages and salaries
Employer's National Insurance
No. of employees		 2024
2023
£
£
13,875
9,750
752
518
14,627
10,268
1
1

No employee received emoluments of more than £60,000 during the year.

7 Net incoming/outgoing resources

Net incoming/outgoing resources for the year include:

2024 2023
£ £
Depreciation of fixed assets 3,610 4,812

8

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF METRO LEEDS

Notes to the Accounts for the year ended 31 March 2024 - Continued

8 Tangible functional fixed assets

Freehold
Land and
Buildings
£
Asset cost, valuation, or revalued amount
At 1 April 2023
1,524,303
Additions
-
Improvements
21,000
At 31 March 2024
1,545,303
Accumulated depreciation and impairment provisions
At 1 April 2023
-
Depreciation on revaluation
-
Charge for the year
-
At 31 March 2024
-
Net book value
At 31 March 2024
1,545,303
At 31 March 2023
1,524,303
10 Creditors: Amounts Falling due after one year
Other Creditors (Qarz-e-Hasna)
11 Funds Reconciliation
Balance at 1st
April 2023
£
Incoming
resources
£

Unrestricted funds
396,935
148,467

Restricted funds
1,096,149
-

Total funds
1,493,084
148,467

9 Creditors: amounts falling due within one year
PAYE
Net Wages
Accrued expenses		 Freehold
Land and
Buildings
£
1,524,303
-
21,000		 Plant,
Machinery &
Vehicles
£
49,915
-
-		 Plant,
Machinery &
Vehicles
£
49,915
-
-		 Total
£
1,574,218
-
21,000
1,545,303 49,915 1,595,218
35,477
-
3,610		 35,477
-
3,610
- 39,087 39,087
1,545,303 10,828 1,556,131
1,524,303 14,438 1,538,741
Incoming
resources
£

148,467

-

148,467
 2024
£
87,217
2024
£
2,339
2,611
1,550
6,500		 2023
£
112,217
2023
£
998
1,082
1,550
3,630
Resources
expended
£
(84,213)
-
(84,213)
 Balance at 31
March 2024
£
461,189
1,096,149
1,557,338

9

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY OF METRO LEEDS

Notes to the Accounts for the year ended 31 March 2024 - Continued

12 Detailed of incoming resources

Income and Endowments from
Charitable activities
Donations
Other income
Grant received
Gift Aid tax reclaimed
Investment income
Income from investment properties
Interest income
Total income
Detailed of resources expanded.
Expenditure on
Events
Hadiya
Educational activities
Website cost and advertising
Staff salaries
Employer NI
Rent & Rates
Light and heat
Repairs and maintenance
Telephone and internet
Subscription
Cleaning
Office Supplies
Insurance
Legal and professional
Bank Charges
Depreciation
Other expenditures
Expenses on Investment properties
Independent examination
Total Expenditures		 Unrestricted
funds
Restricted
funds
Total
2024
£
£
£
66,473
-
66,473
28,182
-
28,182
35,000
-
35,000
10,372
-
10,372
140,027
-
140,027
8,390
-
8,390
50
- 50
148,467
-
148,467
Unrestricted
funds
Restricted
funds
Total
2024
£
£
£
17,087
-
17,087
7,946
-
7,946
2,485
-
2,485
478
-
478
13,875
-
13,875
752
-
752
2,322
-
2,322
5,275
-
5,275
8,748
-
8,748
523
-
523
559
-
559
1,090
-
1,090
1,049
-
1,049
2,205
-
2,205
2,400
-
2,400
-
-
-
3,610
-
3,610
82,757
-
82,757
456
-
456
1,000
-
1,000
84,213
-
84,213		 Total
2023
£
43,205
-
51,466
9,867
104,538
9,299
25
113,862
Total
2023
£
8,418
11,097
3,965
752
9,750
518
-
4,120
8,152
1,392
415
314
-
2,671
545
370
4,812
57,291
2,747
1,000
61,038

13 Detailed of resources expanded.

10