Charity registration number 518022
MADRASSA ZIA UL QURAN
(MOSQUE AND RELIGIOUS TEACHING INSTITUTE) ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
MADRASSA ZIA UL QURAN (MOSQUE AND RELIGIOUS TEACHING INSTITUTE) LEGAL AND ADMINISTRATIVE INFORMATION
| Trustees | Mr Khawaja Mohammed Shafique |
|---|---|
| Mr Mohammad Younis | |
| Mr Muhammad Nawaz | |
| Mr Mohammed Younas | |
| Chairperson | Mr Khawaja Mohammed Shafique |
| Treasurer | Mr Mohammad Younis |
| Secretary | Mr Muhammad Nawaz |
| President | Mr Mohammed Younas |
| Charity number | 518022 |
| Principal address | 233 St Saviours Road |
| Saltley | |
| Birmingham | |
| B8 1ER | |
| Independent examiner | Kaiser Nouman Nathan LLP |
| 57 Alfred Street | |
| Sparkbrook | |
| Birmingham | |
| B12 8JP | |
| Bankers | Barclays Bank PLC |
| 534 Coventry Road | |
| Small Heath | |
| Birmingham | |
| B10 0UZ |
MADRASSA ZIA UL QURAN (MOSQUE AND RELIGIOUS TEACHING INSTITUTE) CONTENTS
| Page | |
|---|---|
| Trustees report | 1 |
| Independent examiner's report | 2 |
| Statement of financial activities | 3 |
| Statement of financial position | 4 |
| Notes to the financial statements | 5 - 10 |
MADRASSA ZIA UL QURAN (MOSQUE AND RELIGIOUS TEACHING INSTITUTE) TRUSTEES REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
The Trustees present their annual 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 Madrassa Zia Ul Quran'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 Madrassa Zia Ul Quran's object is to provide a place of worship and religious teaching and education for the benefit of local Muslim Community. The policies adopted in furtherance of these objects are same as last year and there has been no change in these during the year.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Madrassa Zia Ul Quran should undertake.
Funds are being held in cash to finance building expansion and possible investment to ensure future operations and revenues.
Achievements and performance
Financial review
It is the policy of the Madrassa Zia Ul Quran 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 consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Madrassa Zia Ul Quran’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 Madrassa Zia Ul Quran is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Structure, governance and management
The Trustees who served during the year and up to the date of signature of the financial statements were: Mr Khawaja Mohammed Shafique
Mr Mohammad Younis Mr Muhammad Nawaz Mr Mohammed Younas
The Trustees report was approved by the Board of Trustees.
Mr Khawaja Mohammed Shafique Chairperson
30 October 2023
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MADRASSA ZIA UL QURAN (MOSQUE AND RELIGIOUS TEACHING INSTITUTE) INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF MADRASSA ZIA UL QURAN
I report to the Trustees on my examination of the financial statements of Madrassa Zia Ul Quran (the Madrassa Zia Ul Quran) for the year ended 31 December 2022.
Responsibilities and basis of report
As the Trustees of the Madrassa Zia Ul Quran 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 Madrassa Zia Ul Quran’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:
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1 accounting records were not kept in respect of the Madrassa Zia Ul Quran as required by section 130 of the 2011 Act; or
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2 the financial statements do not accord with those records; or
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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 have no 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.
Kaiser Nouman Nathan LLP 57 Alfred Street Sparkbrook Birmingham B12 8JP
Dated: 30 October 2023
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MADRASSA ZIA UL QURAN (MOSQUE AND RELIGIOUS TEACHING INSTITUTE) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds |
||
| 2022 | 2021 |
||
| Notes | £ | £ |
|
| Income from: | |||
| Charitable activities | 3 | 190,853 | 163,755 |
| Expenditure on: | |||
| Charitable activities | 4 | 110,196 | 102,760 |
| Net income for the year/ | |||
| Net movement in funds | 80,657 | 60,995 | |
| Fund balances at 1 January 2022 | 1,774,107 | 1,713,112 | |
| Fund balances at 31 December 2022 | 1,854,764 | 1,774,107 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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MADRASSA ZIA UL QURAN (MOSQUE AND RELIGIOUS TEACHING INSTITUTE) STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2022
| Notes Fixed assets Property, plant and equipment 8 Current assets Trade and other receivables 9 Cash at bank and in hand Current liabilities 10 Net current assets Total assets less current liabilities Income funds Unrestricted funds |
2022 £ £ 1,323,633 1,898 534,398 536,296 (5,165) 531,131 1,854,764 1,854,764 1,854,764 |
2021 £ 2,894 429,849 432,743 (1,083) |
£ 1,342,447 431,660 |
|---|---|---|---|
| 1,774,107 | |||
| 1,774,107 | |||
| 1,774,107 |
The financial statements were approved by the Trustees on 30 October 2023
Mr Khawaja Mohammed Shafique Chairperson
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MADRASSA ZIA UL QURAN (MOSQUE AND RELIGIOUS TEACHING INSTITUTE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
1 Accounting policies
Charity information
Madrassa Zia Ul Quran is a registered charity in England (Registration number: 518022).
1.1 Accounting convention
The financial statements have been prepared in accordance with the Madrassa Zia Ul Quran's governing document, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 Madrassa Zia Ul Quran is a Public Benefit Entity as defined by FRS 102.
The Madrassa Zia Ul Quran has taken advantage of the provisions in the SORP for charities 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 Madrassa Zia Ul Quran. 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 Madrassa Zia Ul Quran 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 statements.
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.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Madrassa Zia Ul Quran.
1.4 Income
Income is recognised when the Madrassa Zia Ul Quran 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 Madrassa Zia Ul Quran 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.
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MADRASSA ZIA UL QURAN (MOSQUE AND RELIGIOUS TEACHING INSTITUTE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
1 Accounting policies
(Continued)
Legacies are recognised on receipt or otherwise if the Madrassa Zia Ul Quran 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 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
1.6 Property, plant and equipment
Property, plant and equipment 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:
Freehold land and buildings 2% per annum on net book value Fixtures and fittings 15% per annum on net book value
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 the statement of financial activities.
1.7 Impairment of non-current assets
At each reporting end date, the Madrassa Zia Ul Quran 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.
1.9 Financial instruments
The Madrassa Zia Ul Quran 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 Madrassa Zia Ul Quran's balance sheet when the Madrassa Zia Ul Quran 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.
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MADRASSA ZIA UL QURAN (MOSQUE AND RELIGIOUS TEACHING INSTITUTE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
1 Accounting policies
(Continued)
Basic financial assets
Basic financial assets, which include trade and other receivables 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 trade and other payables 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 method.
Trade payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Madrassa Zia Ul Quran’s contractual obligations expire or are discharged or cancelled.
1.10 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the Madrassa Zia Ul Quran is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2 Critical accounting estimates and judgements
In the application of the Madrassa Zia Ul Quran’s accounting policies, the Trustees are required to make judgements, 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.
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MADRASSA ZIA UL QURAN (MOSQUE AND RELIGIOUS TEACHING INSTITUTE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
3 Charitable activities
| Unrestricted | Unrestricted | |
|---|---|---|
| 2022 | 2021 | |
| £ | £ | |
| Donations and Legacies | 190,853 | 151,997 |
| Other Income | - | 11,758 |
| 190,853 | 163,755 | |
| Charitable activities | ||
| 2022 | 2021 | |
| £ | £ | |
| Wages & NIC | 46,232 | 32,652 |
| Depreciation | 29,494 | 28,648 |
| Rates and Insurance | 6,045 | 6,065 |
| Light & Heat | 16,292 | 15,312 |
| Telecommunication & Postage | 533 | 769 |
| Books and Stationery | 965 | 1,425 |
| Repairs and Alarm Maintenance | 5,259 | 9,694 |
| Book keeping | 504 | 492 |
| Accountancy fee | 1,500 | 690 |
| Cleaning and Waste disposal | 2,402 | 4,703 |
| Sundry expenses | 970 | 2,310 |
| 110,196 | 102,760 | |
| 110,196 | 102,760 |
4 Charitable activities
5 Trustees
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Madrassa Zia Ul Quran during the year.
6 Employees
The average monthly number of employees during the year was:
| 2022 | 2021 |
|---|---|
| Number | Number |
| 4 | 4 |
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MADRASSA ZIA UL QURAN (MOSQUE AND RELIGIOUS TEACHING INSTITUTE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
6
| Employees | (Continued) | |
|---|---|---|
| Employment costs | 2022 | 2021 |
| £ | £ | |
| Wages and salaries | 46,232 | 32,652 |
There were no employees whose annual remuneration was more than £60,000.
7 Taxation
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
8 Property, plant and equipment
| Freehold land and buildings Fixtures and fittings £ £ Cost At 1 January 2022 1,866,684 57,610 Additions - 10,680 At 31 December 2022 1,866,684 68,290 Depreciation and impairment At 1 January 2022 532,254 49,593 Depreciation charged in the year 26,689 2,805 At 31 December 2022 558,943 52,398 Carrying amount At 31 December 2022 1,307,741 15,892 At 31 December 2021 1,334,430 8,017 9 Trade and other receivables 2022 Amounts falling due within one year: Trade receivables £ 1,898 |
Total £ 1,924,294 10,680 1,934,974 581,847 29,494 611,341 1,323,633 1,342,447 2021 £ 2,894 |
|---|---|
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MADRASSA ZIA UL QURAN (MOSQUE AND RELIGIOUS TEACHING INSTITUTE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
10 Current liabilities
| Current liabilities | ||
|---|---|---|
| Other taxation and social security Trade payables Accruals and deferred income |
2022 £ 145 4,430 690 5,165 |
2021 £ 70 323 690 |
| 1,083 |
11 Related party transactions
There were no disclosable related party transactions during the year (2021 - none).
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