REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
REPORT OF THE TRUSTEES AND |
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
PRESTON MUSLIM EDUCATION COUNCIL |
REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
REPORT OF THE TRUSTEES AND |
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
PRESTON MUSLIM EDUCATION COUNCIL |
PRESTON MUSLIM EDUCATION COUNCIL |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the Year Ended 31 December 2023 |
Page |
Report of the Trustees | 1 | to | 3 |
Independent Examiner's Report | 4 |
Statement of Financial Activities | 5 |
Balance Sheet | 6 |
Notes to the Financial Statements | 7 | to | 11 |
PRESTON MUSLIM EDUCATION COUNCIL (REGISTERED NUMBER: 13906100) |
REPORT OF THE TRUSTEES |
for the Year Ended 31 December 2023 |
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2023. The trustees have adopted the provisions of 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 |
Public Benefit Statement |
The objects of the charity are the advancement of the Islamic faith, and to advance education. |
In setting our objectives and planning our activities our Trustees have given careful consideration to the Charity Commission's general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education and for the advancement of religion. |
Significant activities |
The charity promotes education with the provision of the school premises for The Preston Muslim Girls' High School. |
Volunteers |
The charity is dependent upon its volunteers, who are its trustees, and they perform the charity's work, including all administrative functions. |
FINANCIAL REVIEW |
Financial position |
The company was established on 10 February 2022. Its purpose was to incorporate the affairs of an unincorporated charity. The property owned by the unincorporated charity was transferred to the company in June 2022 and as its predececessor had prepared its financial statements for the year ended 31 August, the comparatives of these accounts include the activities of the charity with effect from 1 September 2022 to its period end date of 31 December 2022 (four months) merged with the antecedent period. |
The transfer of the activities of the antecedent charity and its property has been notified to and accepted by the Charity Commission. |
The income declared on the Statement of Financial Activities reflects the inclusion of the property owned by the antecedent charity into this company's financial statements. |
During the year, the charity incurred significant legal costs in relation to a "right of way" dispute with neighbours of its property investment. The costs have used up all of the income for this year and will also impact on the 2024 income. |
Investment policy and objectives |
The charity receives income from donations and rents generated by investment properties. For the year ended 31 December 2023 the fund suffered a deficit of £126,191, (2022: generated a surplus of £124,310). |
There are no restrictions on the charity's power to invest. The trustees decided to acquire an investment property so as to provide a regular source of income for the charity, and income from the investment property totalled £157,500 (2022: £130,000). |
PRESTON MUSLIM EDUCATION COUNCIL (REGISTERED NUMBER: 13906100) |
REPORT OF THE TRUSTEES |
for the Year Ended 31 December 2023 |
FINANCIAL REVIEW |
Reserves policy |
The trustees have established a charity which contains an investment property. The aim of this is to ensure that from a commercial lease the charity has a guaranteed annual income, that is not dependant upon gifts, donations or legacies. |
The trustee's anticipate that costs will be incurred to enhance and refurbish the property owned by charity to provide a better resource for its tenants and the pupils of the high school. Any surplus can then be used to support beneficiaries of the charity. |
The expenditure of the charity is dependent upon funds generated, and administrative costs are kept to a minimum. In view of this the charity has sufficient reserves to continue for the foreseeable future. |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Governing document |
The charity is controlled by its governing document, its memorandum and articles of association dated 10 February 2022, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. The liability of members is limited to £1. |
Recruitment and appointment of new trustees |
Trustees are appointed by the board of trustees, who may also remove trustees should they become unfit to continue in office. |
Organisational structure |
The charity is managed by its trustees, who meet on a regular basis to address the business of the charity. No trustees receive any remuneration for their services. |
Induction and training of new trustees |
Training is provided on an ongoing basis and upon commencement for new trustees. |
Risk management |
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. |
REFERENCE AND ADMINISTRATIVE DETAILS |
Registered Company number |
Registered Charity number |
Registered office |
Trustees |
PRESTON MUSLIM EDUCATION COUNCIL (REGISTERED NUMBER: 13906100) |
REPORT OF THE TRUSTEES |
for the Year Ended 31 December 2023 |
REFERENCE AND ADMINISTRATIVE DETAILS |
Independent Examiner |
Mr R H Brain | FCA | BA(Hons) |
James Todd & Co |
Greenbank House |
141 Adelphi Street |
Preston |
Lancashire |
PR1 7BH |
Approved by order of the board of trustees on |
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF |
PRESTON MUSLIM EDUCATION COUNCIL |
Independent examiner's report to the trustees of PRESTON MUSLIM EDUCATION COUNCIL ('the Company') |
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2023. |
Responsibilities and basis of report |
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts 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 your 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 Company as required by Section 386 of the 2006 Act; or |
2. | the accounts do not accord with those records; or |
3. | the accounts 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 accounts 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. |
Mr R H Brain | FCA | BA(Hons) |
The Institute of Chartered Accountants in England and Wales |
James Todd & Co |
Greenbank House |
141 Adelphi Street |
Preston |
Lancashire |
PR1 7BH |
24 September 2024 |
PRESTON MUSLIM EDUCATION COUNCIL |
STATEMENT OF FINANCIAL ACTIVITIES |
for the Year Ended 31 December 2023 |
Period |
10.2.22 |
Year Ended | to |
31.12.23 | 31.12.22 |
Unrestricted | Total |
fund | funds |
Notes | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies |
Investment income | 2 |
Total |
EXPENDITURE ON |
Charitable activities |
Net gains on investments |
NET INCOME |
RECONCILIATION OF FUNDS |
Total funds brought forward |
TOTAL FUNDS CARRIED FORWARD | 1,465,289 |
PRESTON MUSLIM EDUCATION COUNCIL (REGISTERED NUMBER: 13906100) |
BALANCE SHEET |
31 December 2023 |
31.12.23 | 31.12.22 |
Unrestricted | Total |
fund | funds |
Notes | £ | £ |
FIXED ASSETS |
Investment property | 7 |
CURRENT ASSETS |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 8 | ( |
) | ( |
) |
NET CURRENT ASSETS | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
NET ASSETS |
FUNDS | 9 |
Unrestricted funds | 1,465,289 |
TOTAL FUNDS | 1,465,289 |
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2023. |
The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2023 in accordance with Section 476 of the Companies Act 2006. |
The trustees acknowledge their responsibilities for |
(a) | ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company. |
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. |
The financial statements were approved by the Board of Trustees and authorised for issue on |
PRESTON MUSLIM EDUCATION COUNCIL |
NOTES TO THE FINANCIAL STATEMENTS |
for the Year Ended 31 December 2023 |
1. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets. |
The presentation currency of the financial statements is the Pound Sterling (£). |
Income |
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. Rent is recognised on an accruals basis, and donations are recorded when received by the charity. |
Expenditure |
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. |
Allocation and apportionment of costs |
Property management costs are those costs incurred to assist the work of the charity, and are support costs in charitable activities. These costs are incurred to ensure that the charity receives the appropriate return from its property investment, and to protect the asset. |
Governance costs are those costs that relate to the public accountability of the charity and its compliance with regulations and good practice. Costs of governance are recorded on an accruals basis and the trustees aim to keep these to a minimum. |
Investment property |
The investment property is initially shown at cost and subsequently at fair value at the reporting date. Any aggregate surplus or deficit being taken to "gains and losses on investment asset" on the Statement of Financial Activities. |
Taxation |
The charity is exempt from corporation tax on its charitable activities. |
Fund accounting |
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. |
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. |
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. |
Foreign currencies |
Transactions in foreign currencies are translated into Sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the operating result. |
PRESTON MUSLIM EDUCATION COUNCIL |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
1. | ACCOUNTING POLICIES - continued |
Financial instruments |
Financial instruments are recognised when the charity becomes party to the contractual provisions of the instrument. Basic financial assets, which include debtors, prepayments and bank balances, are initially measured at transaction price and are subsequently carried at cost. Basic financial liabilities, which include creditors, accruals, loans and borrowings, are initially recognised at transaction price and are subsequently carried at cost. |
2. | INVESTMENT INCOME |
Period |
10.2.22 |
Year Ended | to |
31.12.23 | 31.12.22 |
£ | £ |
Rents receivable |
3. | SUPPORT COSTS |
Governance |
costs |
£ |
Support Costs | 286,191 |
4. | NET INCOME/(EXPENDITURE) |
Net income/(expenditure) is stated after charging/(crediting): |
Period |
10.2.22 |
Year Ended | to |
31.12.23 | 31.12.22 |
£ | £ |
Independent examination fees | 300 | - |
Accountancy fees | 2,230 | - |
5. | TRUSTEES' REMUNERATION AND BENEFITS |
There were no trustees' remuneration or other benefits for the year ended 31 December 2023 nor for the period ended 31 December 2022. |
Trustees' expenses |
There were no trustees' expenses paid for the year ended 31 December 2023 nor for the period ended 31 December 2022. |
PRESTON MUSLIM EDUCATION COUNCIL |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
6. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES |
Unrestricted |
fund |
£ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies |
Investment income |
Total |
EXPENDITURE ON |
Charitable activities |
NET INCOME |
RECONCILIATION OF FUNDS |
Total funds brought forward |
TOTAL FUNDS CARRIED FORWARD | 1,465,289 |
7. | INVESTMENT PROPERTY |
£ |
FAIR VALUE |
At 1 January 2023 |
Revaluation | 1,552,077 |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The investment property has been valued by the trustees on 31 December 2023 on an open market basis. This being the estimated amount for which an asset should exchange between a willing buyer and a willing seller in an arm's length transaction, after proper marketing and where the parties each acted knowledgeably, prudently and without compulsion. |
PRESTON MUSLIM EDUCATION COUNCIL |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
8. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Other creditors |
9. | MOVEMENT IN FUNDS |
Net |
movement | At |
At 1.1.23 | in funds | 31.12.23 |
£ | £ | £ |
Unrestricted funds |
General fund | 1,465,289 | 1,425,886 | 2,891,175 |
TOTAL FUNDS | 1,425,886 | 2,891,175 |
Net movement in funds, included in the above are as follows: |
Incoming | Resources | Gains and | Movement |
resources | expended | losses | in funds |
£ | £ | £ | £ |
Unrestricted funds |
General fund | 160,000 | (286,191 | ) | 1,552,077 | 1,425,886 |
TOTAL FUNDS | ( |
) | 1,425,886 |
Comparatives for movement in funds |
Net |
At | movement | At |
10.2.22 | in funds | 31.12.22 |
£ | £ | £ |
Unrestricted funds |
General fund | 1,340,979 | 124,310 | 1,465,289 |
TOTAL FUNDS | 1,340,979 | 124,310 | 1,465,289 |
Comparative net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 212,605 | (88,295 | ) | 124,310 |
TOTAL FUNDS | 212,605 | (88,295 | ) | 124,310 |
PRESTON MUSLIM EDUCATION COUNCIL |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
10. | CONTINGENT LIABILITIES |
At the balance sheet date the charity faced litigation regarding a property right of way dispute. This has now been resolved and the trustees achieved a positive outcome regarding their property rights. The costs involved in concluding the action occurred after the year end and will fall in the following year's accounts. |
11. | RELATED PARTY DISCLOSURES |