The trustees present their annual report and financial statements for the year ended 30 September 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 2 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)".
Haaya Foundation’s aim is to preserve the essence of the Islamic faith by empowering Muslims to achieve a full potential in their spiritual, educational, physical, socio-economic and cultural aspirations. It will act as an interchange, aiming to inspire Muslims to play a positive and pivotal role in the community and wider British society.
Haaya Foundation will advance the Islamic faith through the holding of prayer meetings, establishment of religious places, production/distribution of Islamic literature(s), youth work, welfare projects, education and community engagement, to foster meaningful civic relations and to empower attendees of all genders in becoming positive and productive British citizens.
Haaya Foundation is a focused and socially responsible charity, which endeavours to contribute through its humanitarian work to present a positive image of Islam & Muslims in the UK and across the world, by providing grants and services to individuals in need and or charities, or other organisations working to alleviate poverty.
The Charity currently has 6 trustees and over 20 volunteers who manage the day to day of the Activities.
Saturday Islamic School & Evening Madrassa
Education remains at the forefront of this mission. For both male and female, young and old we aim to establish classes for Quran, Arabic, Fiqh and many of the Islamic sciences. Special attention will be given to those new to the faith and those who wish to renew their commitment to Islam and learning.
New Muslim Circle
This was launched to provide a welcoming, friendly family environment for new Muslims to learn about their new way of life in a way that caters for their individual background and level of experience. Topics include the method of prayer, Arabic phrases etc.
New Muslims face unique challenges whereby their environment remains the same while their internal world has been revolutionised. There can be lapses in focus or confidence, which is why support and education is required.
A Revert’s Winter Luncheon was held as a celebration and social event for our members.
Friday Halaqah
A Weekly Friday Halaqah has been run at the masjid since we opened our doors.
The aim of the halaqah has been to provide a platform for people of all ages and backgrounds to understand more about Islamic topics and to be given an opportunity to ask questions. This was also a way for the community to meet other people as they became regular attendees, to mingle and catch up while enjoying light refreshments together.
YOUTH ACTIVITIES
Friday Youth Hub
We welcome the Youth every Friday in our hall, where they can play pool, table tennis, PlayStation, and meet up with friends.
“The Night is Young” was a special sleepover to help children to boost their iman, make new friends and to have fun.
“Fajr Knights” was a community engagement programme over the course of 2 weeks, to encourage and motivate the Fajr prayer for our children.
“Be Like Muhammad” Series was held over a period of 16 weeks to teach children about the seerah of our Prophet Muhammad (PBUH).
Mother&Child Group Relaunch
Mother and Child group relaunched after a hiatus of many years. It was a blissfully successful summer scheme with a range of trips including those to Kew Gardens and London Zoo, theatre trips and planned activities in Royal Parks and Hampton Court Palace.
The group has grown to over 50 mothers and since January activities expanded to a weekly forest school in partnership with Chiswick House. There was a book reading event at HMC, and there are many other projects in the pipeline such as a women’s only swimming, and a legal clinic and mediation service.
Boxing & Fitness club
This was first launched on our Community Open Evening and Barbecue Event. A professional teacher has since been training and motivating our youth in this art of self-defence and physical exercise.
Unlock the Football Tournaments
This has been a huge success, as an inter-Masjid competition of 2 league of boys of ages 14-16, and 16 or above. Organised between West London Islamic Centre, Ealing Masjid and Hounslow Muslim Centre, the tournament set against each other 5-a-side teams to battle it out as champions.
In a short space of time HMC has established a positive standing in the community. With its enthusiastic and dedicated band of volunteers and project leads, HMC has continued to grow, offering a wide range of activities and services.
The results for the Period are set on page 4.
It is the policy of the charity 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 considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’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 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 funds are from donations and interest free loans. The Trustees continue to secure further donations to cover the future operating cost of the mosque.
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.
The trustees do not have 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.
All administrative tasks were carried out by the trustees, who are also the key management personnel of the charity.
The report was approved by the Board of Trustees.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
I report to the trustees on my examination of the financial statements of Haaya Foundation (the charity) for the year ended 30 September 2024.
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the Companies Act 2006 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. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
Since the charity’s gross income exceeded £250,000, the independent examiner must be a member of a body listed in section 145 of the Charities Act 2011. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
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 Companies Act 2006.
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 Companies Act 2006 other than any requirement that the financial statements 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 financial statements 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.
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.
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, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 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)". 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 not to prepare a statement of cash flows.
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.
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 or grantors 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.
Cash donations are recognised on receipt. Other donations are recognised once the charity 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.
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:
No depreciation is provided in respect of the charity’s freehold property. This is due to the fact that the expected useful life of the property is very long and the charity have a policy of a regular maintenance and repair, this cost is written off in the accounts as and when they are incurred so the property is maintained at a high standard, because of this, the trustees consider that the estimated residual value of the property is not materially different from its carrying value and as such any resulting depreciation charge would be immaterial and it is therefore not provided.
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.
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.
The charity 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 charity's balance sheet when the charity 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.
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 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 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.
Running of the Mosque
Running of the Mosque
Consultancy
Repairs and maintenance
Legal and professional
Light and heat
Insurance
Service cost on Qard Hasana
Iftar
The average monthly number of employees during the year was:
The remuneration of key management personnel was as follows:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
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.
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
During the year the charity entered into the following transactions with related parties:
As at the period end the balanced owed to Hounslow Asian and African Youth Associations is £5,110 (2023: £5,110)