PURLEY ISLAMIC COMMUNITY CENTRE Charity Accounts

PURLEY ISLAMIC COMMUNITY CENTRE - Company Information

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COMPANY REGISTRATION NUMBER: 06902369

CHARITY REGISTRATION NUMBER: 1146668

PURLEY ISLAMIC COMMUNITY CENTRE

Company Limited by Guarantee

Unaudited Financial Statements

31 May 2018

PURLEY ISLAMIC COMMUNITY CENTRE

Company Limited by Guarantee

Financial Statements

Year ended 31 May 2018

	Page

Trustees' annual report (incorporating the director's report)	1

Independent examiner's report to the trustees	3

Statement of financial activities (including income and expenditure account)	4

Statement of financial position	5

Notes to the financial statements	6

PURLEY ISLAMIC COMMUNITY CENTRE

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report)

Year ended 31 May 2018

The trustees, who are also the directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended 31 May 2018 .

Reference and administrative details

Registered charity name	PURLEY ISLAMIC COMMUNITY CENTRE

Charity registration number	1146668

Company registration number	06902369

Principal office and registered	63 Whytecliffe Road South
office	Purley
	CR8 2AZ

The trustees

	Mr Waqar Ahmed
	Mr Akhtar Choudhry
	Dr Mohammed Irfan
	Ms Amna Ahmed	(Resigned 12 May 2018)
	Mr Javid Chaudury	(Resigned 4 October 2017)

Company secretary	Ms Amna Ahmed

Independent examiner	Mohammad Saleemi Chartered Accountant (ICAEW) Saleemi Associates 792 Wickham Road Croydon CR0 8EA
	Registered Auditors and Chartered Accountants
	792 Wickham Road
	Croydon CR0 8EA

Structure, governance and management

Purley Islamic Community Centre is a company limited by guarantee (incorporated on 11 May 2009) and a registered charity in England (number1146668, registered on 29 March 2012) governed by its Memorandum and Articles of Association.

Trustees of the Charity are nominated and appointed in accordance with the terms set out in the Articles of Association.

Objectives and activities

The objects of the charity are: -

" To uphold and preserve the religion of Islam in accordance with the tenets and doctrines of the Sunni and Hanafi school of thought " To promote harmony and understanding between the Muslim community and other Faith communities " To provide educational facilities for adults and children" To establish and run a community centre and a prayer facility in Purely, Surer in furtherance of the aforementioned objects " To purchase land and property in furtherance of the above objectives" To assist financially and / or otherwise members of the community in need" To work in cooperation and to coordinate with other similar organisations" To seek financial assistance from the community in furtherance of the above objectives

Achievements and performance

Since May 2018, the Trustees have initiated and encouraged many activities in line with the objectives of the charity. These include establishing: - " Purley Masjid Scouts, which has a well-attended Beavers & Cubs and has now launched the higher age groups; " a children's madrasah, which operates 5 days a week; " a weekly Foodbank for all faiths;

" a social club for Seniors;

" a mothers' and toddlers' social group;

" an open day, which has been held every year since 2017, was attended by local vicars, councillors and non-Muslim members of our community; " an exhibition on Islam, which was also well-attended by the community; " A lecture, presentation or talk every single week - in fact, we have delivered almost a 100 over the year.

The Trustees have worked with the Imam to set up regular talks and lectures at the Masjid for the community. Our lectures and talks covered a wide range of topics including astronomy, mental health issues, general health, historical, scientific and adult education courses were held teaching subjects such as Arabic grammar and parenting skills.

Financial review

Income for the year was £90,567.00 and expenses where £43,254.00

Gross income, including from interest and investments, has increase from £59,795.00 (2017) to £90,567.00 Increase in income is due to a higher level of donations. The total expenditure on projects increased from £43,254 to £53,698. The decrease in total expenditure was due to a release in a provision for an expense made in the 2017 accounts. The charity has a reasonable unrestricted Reserves balance of 78k. This along with the anticipated collections on Fridays gives it sufficient working capital for the next 12-18 months. Principal source of funds is through donations by the congregation at Friday prayers, during Ramadhan and membership.

Small company provisions

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

The trustees' annual report was approved on 27 February 2019 and signed on behalf of the board of trustees by:

Mr Waqar Ahmed	Dr Mohammed Irfan
Trustee	Trustee

PURLEY ISLAMIC COMMUNITY CENTRE

Company Limited by Guarantee

Independent Examiner's Report to the Trustees of PURLEY ISLAMIC COMMUNITY CENTRE

Year ended 31 May 2018

I report to the trustees on my examination of the financial statements of PURLEY ISLAMIC COMMUNITY CENTRE ('the charity') for the year ended 31 May 2018.

Responsibilities and basis of report

As the trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 ('the 2006 Act’).

Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. Independent examiner's statement

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:

1. accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or

2. the financial statements do not accord with those records; or

3. the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act 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; or

4. the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

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 accounts to be reached.

Mohammad Saleemi Chartered Accountant (ICAEW) Saleemi Associates 792 Wickham Road Croydon CR0 8EA

Independent Examiner

Registered Auditors and Chartered Accountants 792 Wickham Road Croydon CR0 8EA

27 February 2019

PURLEY ISLAMIC COMMUNITY CENTRE

Company Limited by Guarantee

Statement of Financial Activities

(including income and expenditure account)

Year ended 31 May 2018

	2018			2017
	Unrestricted funds	Restricted funds	Total funds	Total funds
Note	£	£	£	£

Income and endowments

Donations and legacies	5	89,067	1,500	90,567	59,795
		--------	-------	--------	--------
Total income		89,067	1,500	90,567	59,795
		--------	-------	--------	--------

Expenditure

Expenditure on charitable activities	6,7	43,254	–	43,254	53,698
		--------	-------	--------	--------
Total expenditure		43,254	–	43,254	53,698
		--------	-------	--------	--------

	--------	-------	--------	--------
Net income and net movement in funds	45,813	1,500	47,313	6,097
	--------	-------	--------	--------

Reconciliation of funds

Total funds brought forward	36,300	1,221,891	1,258,191	1,252,094
	--------	------------	------------	------------
Total funds carried forward	82,113	1,223,391	1,305,504	1,258,191
	--------	------------	------------	------------

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

PURLEY ISLAMIC COMMUNITY CENTRE

Company Limited by Guarantee

Statement of Financial Position

31 May 2018

	2018		2017
Note	£	£	£

Fixed assets

Tangible fixed assets	12		1,221,304	1,220,628

Current assets

Debtors	13	5,949	770
Cash at bank and in hand		88,767	58,373
		--------	--------
		94,716	59,143

Creditors: amounts falling due within one year	14	10,516		21,580
		--------		--------
Net current assets			84,200	37,563
			------------	------------
Total assets less current liabilities			1,305,504	1,258,191
			------------	------------

Funds of the charity

Restricted funds	1,223,391	1,221,891
Unrestricted funds	82,113	36,300
	------------	------------
Total charity funds	1,305,504	1,258,191
	------------	------------

For the year ending 31 May 2018 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

These financial statements were approved by the board of trustees and authorised for issue on 27 February 2019 , and are signed on behalf of the board by:

Mr Waqar Ahmed	Dr Mohammed Irfan
Trustee	Trustee

PURLEY ISLAMIC COMMUNITY CENTRE

Company Limited by Guarantee

Notes to the Financial Statements

Year ended 31 May 2018

1. General information

The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is 63 Whytecliffe Road South, Purley, CR8 2AZ.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Companies Act 2006.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the charity's ability to continue.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes. Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment. Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

Incoming resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income: - income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably. - legacy income is recognised when receipt is probable and entitlement is established. - income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers. - income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates: - expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods. - expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities. - other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Tangible assets

All fixed assets are initially recorded at cost.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

	Fixtures & fittings	-	25% reducing balance

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.

Financial instruments

A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs. Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted. Debt instruments are subsequently measured at amortised cost. Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.

4. Limited by guarantee

The Charity is a registered in Companies House as Company limited by guarantee and has no share capital. Every member of the Charity undertakes to contribute such amount as my be required (not exceeding 10 (pounds)) to the Charity's assets if it should be wound up while he or she is a member or within a year after he or she ceases to be member, for payment of the Charity's debts and liabilities contracted before he or she ceases to be a member, and of the cots, charges and expenses of winding up, and for the adjustment of the rights of the contributories among themselves.

5. Donations and legacies

Unrestricted Funds	Restricted Funds	Total Funds 2018
£	£	£

Donations

Donations	89,067	1,500	90,567
	--------	-------	--------

Unrestricted Funds	Restricted Funds	Total Funds 2017
£	£	£

Donations

Donations	59,795	–	59,795
	--------	----	--------

6. Expenditure on charitable activities by fund type

	Unrestricted Funds	Total Funds 2018	Unrestricted Funds	Total Funds 2017
	£	£	£	£
Expenditure on charitable activities	43,254	43,254	47,699	47,699
Support costs	–	–	5,999	5,999
	--------	--------	--------	--------
	43,254	43,254	53,698	53,698
	--------	--------	--------	--------

7. Expenditure on charitable activities by activity type

	Activities undertaken directly	Total funds 2018	Total fund 2017
	£	£	£
Expenditure on charitable activities	43,254	43,254	47,699
Governance costs	–	–	5,999
	--------	--------	--------
	43,254	43,254	53,698
	--------	--------	--------

8. Net income

Net income is stated after charging/(crediting):

	2018	2017
	£	£
Depreciation of tangible fixed assets	5,726	6,000
	-------	-------

9. Independent examination fees

	2018	2017
	£	£

Fees payable to the independent examiner for:

Independent examination of the financial statements	–	2,000
	----	-------

10. Staff costs

The total staff costs and employee benefits for the reporting period are analysed as follows:

	2018	2017
	£	£
Wages and salaries	10,768	26,216
Employer contributions to pension plans	75	–
	--------	--------
	10,843	26,216
	--------	--------

The average head count of employees during the year was 1 (2017: 2). The average number of full-time equivalent employees during the year is analysed as follows:

	2018	2017
	No.	No.
Number of staff	1	2
	----	----

No employee received employee benefits of more than £60,000 during the year (2017: Nil).

11. Trustee remuneration and expenses

None of the trustee or management committee member were remunerated or paid any expenses.

12. Tangible fixed assets

	Land and buildings	Fixtures and fittings	Total
	£	£	£
Cost
At 1 June 2017	1,202,627	28,577	1,231,204
Additions	1,500	4,902	6,402
	------------	--------	------------
At 31 May 2018	1,204,127	33,479	1,237,606
	------------	--------	------------
Depreciation
At 1 June 2017	–	10,576	10,576
Charge for the year	–	5,726	5,726
	------------	--------	------------
At 31 May 2018	–	16,302	16,302
	------------	--------	------------
Carrying amount
At 31 May 2018	1,204,127	17,177	1,221,304
	------------	--------	------------
At 31 May 2017	1,202,627	18,001	1,220,628
	------------	--------	------------

13. Debtors

	2018	2017
	£	£
Other debtors	5,949	770
	-------	----

14. Creditors: amounts falling due within one year

	2018	2017
	£	£
Other creditors	10,516	21,580
	--------	--------

15. Pensions and other post retirement benefits

Defined contribution plans

The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £ 75 (2017: £Nil).

16. Analysis of net assets between funds

	Unrestricted Funds	Restricted Funds	Total Funds 2018
	£	£	£
Tangible fixed assets	17,177	1,204,127	1,221,304
Current assets	75,452	19,264	94,716
Creditors less than 1 year	(10,516)	–	(10,516)
	--------	------------	------------
Net assets	82,113	1,223,391	1,305,504
	--------	------------	------------

	Unrestricted Funds	Restricted Funds	Total Funds 2017
	£	£	£
Tangible fixed assets	18,001	1,202,627	1,220,628
Current assets	39,779	19,264	59,043
Creditors less than 1 year	(23,580)	–	(23,580)
	--------	------------	------------
Net assets	34,200	1,221,891	1,256,091
	--------	------------	------------

17. Related parties

During the year the Charity was under the control of Trustees and Management Committee members as listed on page 1. None of the trustee or management committee member were remunerated or paid any expenses. However, they used the facilities offered by the Charity for performance of their religious duties like other members of the Muslim community.