The trustees present their report and financial statements for the year ended 30 September 2020.
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 charity's [governing document], the Companies Act 2006 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)".
The charity's objects are t o advance the Islamic faith for the public benefit by the provision , maintenance and management of a mosque and ancillary premises to include the provision of educational and religious classes .
T here 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 charity should undertake.
The t ru stees confirm that they have referred to the Charily Commissions' general guidance on Public Benefit when reviewing and shaping the charity's aims and objectives. The charity works to ensure that its programs are inclusive, accessible and responsive to the needs of the beneficiaries.
During the year the charity has made a number of appeals and arranged a number of fundraising dinners.
There has been no outsourced fund raising via professional fundraisers or other third parties. As a result the charity is not registered with the fundraising regulator and received no fundraising complaints in the year.
The results for the Period are set on page 4.
The trustees has assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The main risk is the shortfall in funding. All the funding's are from donations and interest free loans. The Trustees continue to secure further donations to cover the future operating cost of the mosque.
The trustees will continue to increase the social presence of the Mosque and Community Centre.
The charity is a company limited by guarantee . The charity is governed by its Memorandum and Articles of Association and managed by a board of Trustees.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
The trustees are not remunerated for their services to the charity.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up .
During the year the mosque was under construction the charity had no permanent members of staff. All administrative tasks were carried out by the t trustees, who are also the key management person ne l of the charity. The trustees are not remunerated for their services to the charity.
The r eport was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of Haaya Foundation (the charity) for the year ended 30 September 2020.
As the trustees of the charity (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 financial statements of the charity 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 financial statements carried out under section 145 of the Charities Act 2011 (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.
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:
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
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
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 financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Haaya Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is 4-6, Hanworth Road, Hounslow, TW3 1UA, England.
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts 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.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity 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.
As a result of COVID-19 the government imposed a mandatory lockdown between end of March 2020 to June 2020, meant that the mosque did not have congregation as such there was no donations and collections made.
The trustees have considered the effect of the COVID-19 outbreak and considers that it is unlikely to cause a significant disruption to the charity's activities.
The trustees are confident that the charity can continue as a going concern for a period of at least 12 months from the approval of these financial statements. The trustees also consider that the charity has adequate reserves and resources that would allow it to meet its obligations ad debt as they fall due.
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.
A liability is recognised when either a legal or constructive obligation is identified. Irrecoverable VAT is classified in the same way as the transaction to which it relates.
Cost of generating funds are those incurred in attracting voluntary income, in particular donations and the cost of maintaining the charity's profile within the sector.
Costs relating to the running of the mosque are those directly incurred in performing these activities.
Governance costs include those costs incurred in the governance of the charity's assets and are primarily associated with constitution and statutory requirements.
Support costs comprises cost incurred directly in support of expenditure on the objects of the charity and allocated to the appropriate charity activities,
Tangible fixed assets 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:
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 net income/(expenditure) for the year.
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
At each reporting end date, the charity 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 ) .
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.
Basic financial assets, which include debtors 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, including creditors 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 p aymen ts 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 creditors 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
In the application of the charity’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.
Rental income
Cost of raising funds (venue hire, speakers, advertising etc)
Running of the Mosque
Expenses relating to the purchase of the mosque
Consultancy
Repairs and maintenance
Legal and professional
Rates
Light and heat
Postage
Insurance
Service cost on Qard Hasana
Iftar
Bank charges
Printing, stationary and advertising
IT related expenses
General expenses
Governance costs includes payments to the auditors of £nil (2019 : £ 4,800) for audit fees.
The average monthly number of employees during the year was:
Expenses relating to investment property
Investment property comprises a residential property. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 3rd April 2020 by A T & G Chartered Surveyors, who are not connected with the charity. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
The trustees are in the opinion that the fair value of investment property has not changed since the last valuation in April 2020.
During the year the charity entered into the following transactions with related parties:
Hounslow Asian and African Youth Association has paid £nil (2019; £8,000) toward the purchase of the freehold property. They have also collected £nil (2019:£614,000) of donations on behalf of the charity and then transferred this amount during October 2018.
As at the period end the balanced owed to Hounslow Asian and African Youth Associations is £23,112 (2019: £23,112)