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2022-12-31-accounts

Charity Registration No. 1010542

Maktab Tarighat Oveyssi Shahmaghsoudi (School Of Islamic Sufism) Annual report and unaudited financial statements

For the year ended 31 December 2022

55 Loudoun Road St John's Wood London NW8 0DL

MAKTAB TARIGHAT OVEYSSI SHAHMAGHSOUDI (SCHOOL OF ISLAMIC SUFISM)

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees H Rahbari E B Darban A Rezaei Charity number 1010542 Independent examiner MGR Weston Kay LLP 55 Loudoun Road St John's Wood London NW8 0DL Bankers Metro Bank 1 Southampton Row London WC1B 5HA Solicitors Stephen Fidler & Co St Andrews House, 66 Shoe Lane London EC4A 3BQ

MAKTAB TARIGHAT OVEYSSI SHAHMAGHSOUDI (SCHOOL OF ISLAMIC SUFISM)

CONTENTS

Page
Trustees' report 1 - 3
Statement of trustees' responsibilities 4
Independent examiner's report 5
Statement of financial activities 6
Balance sheet 7
Notes to the financial statements 8 - 12

MAKTAB TARIGHAT OVEYSSI SHAHMAGHSOUDI (SCHOOL OF ISLAMIC SUFISM)

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.

Name and Registered Office of the Charity

The full name of the Charity is Maktab Tarighat Oveyssi Shahmaghsoudi (School of Islamic Sufism), its registered office is PO Box 33805, London, N8 8ZW and its principal operating address is 23 Edison Road, Crouch End, London, N8 8AE. It is part of the global organisation with the same name (the global organisation hereinafter referred to as 'MTO').

Charity Financial Statements

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 trust deed, 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 objects are to establish the teaching and advancement of religion and education in the United Kingdom and elsewhere around the world in accordance with the tenets and doctrines of Sufism as practiced by MTO.

During the year the Charity continued to promote Sufism and education as a part of MTO. Its program of lectures and classes in the UK included webcasts from London to students throughout the world. These compliment the broadcasts of related MTO centres elsewhere in Europe and from the United States. The Charity continued to encourage the development of Sufism at Universities and other educational institutions in the UK and to promote inter-faith activities in local communities.

Achievements and performance

The Charity is progressing with the transfer of its assets and operations to the Charitable Incorporated Organisation (‘CIO’), registered charity 1156782 with the same name and objects as the Charity. Any on-going donations or receipts are vested to the CIO accounts as part of the transfer policy.

The main remaining assets of the Charity are the commercial premises near the London Centre bought in October 2012. They were leased for 5 years from 20[th] March 2015 to a nursery. Following approval from the freeholders, in 2020 a new lease was signed by the subtenants and Trustees.

Based on legal advice at the time, the Trustees issued a claim against the original solicitor who acted in the purchase of the commercial premises. The claim was issued in 2018 with the relevant fee paid by the Trust. However, in February 2019, the new solicitors informed Trustees that there was a potential issue with the limitation of the new claim. Trustees sought legal advice, and pursued with Directions questionnaires. Following exchange of documents and correspondence with the other side, both parties asked the court for a consent order to agree mediation. Due to covid 19, the mediation was postponed. The case with Boulter & Co was settled in 2020. A new claim against the new solicitors and advising counsel has been sought. Both defendants have disputed their liability and the matter has been beset by delays in the court listing application and covid restrictions. A court date was set in July 2022 but was adjourned for covid related issues.

Following several rounds of legal advice, initially in May 2021 to July 2022, and delayed court hearings and negotiations with the other parties and the court, the Trustees agreed to settle the claim and discontinue with the parties solicitors signing a Tomlin order on 30[th] June 2023 with confidential terms and no orders on costs.

Financial review

As detailed in the Statement of Financial Activities on page 5, the Charity's reserves at the year-end amounted to £991,699 of unrestricted funds. The Trust will hold these reserves and further funds as they are received as a buffer for operating costs. In addition they are available to help support other centres abroad or fund additional properties in the UK for holding meetings and lectures as required.

MAKTAB TARIGHAT OVEYSSI SHAHMAGHSOUDI (SCHOOL OF ISLAMIC SUFISM)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

Structure, governance and management

The Charity, a Charitable Trust, was registered as a Charity on 14th April 1992. Registration number: 1010542. The governing document is the Deed of Trust dated 18 October 1991 as amended by supplemental deeds dated 9 March 2006, 15 June 2006, 2 January 2009 and 9 April 2009.

The trustees who served during the year and up to the date of signature of the financial statements were:

H Rahbari

E B Darban

A Rezaei

None of the Trustees have been direct beneficiaries of the Charity during the year or the preceding year. No Trustees received any remuneration from the Charity during the year (2021 – £Nil) .

A Trustee is appointed by recommendation of the Trustees, or by proposal of a Trustee entitled to vote at a meeting of the Charity.

Induction and training policies for trustees

The Charity follows the guidelines provided by the Charity Commission.

Responsibility of the Trustees

The Trustees are responsible for the management of the Charity and for the furtherance of the objects for which it is established. Trustees meet on a regular basis to discuss the affairs of the Charity. The Statement of Trustees’ Responsibilities is on Page 4.

Investment Powers

The Trustees may invest the monies of the Charity not immediately required for its purposes in or upon such investments, securities or property as may be thought fit.

Public Benefit Requirement

The Trustees have due regard to the guidance set out under section 17(5) of the Charities Act 2011.

Organisation

The day-to-day activities of the Charity continue to be conducted from premises in London and Birtley and at rented premises in other cities in the United Kingdom.

Volunteers

During the year various individuals gave their time in supporting the Charity’s activities. The value of this substantial support cannot be readily quantified and has not been included in the financial statements.

Risk Management

The Trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity, and are satisfied that systems are in place to mitigate the Charity’s exposure to the major risks.

Independent examiner

A resolution proposing that Nigel Walfisz be reappointed as Independent Examiner will be proposed at the next Annual General Meeting.

MAirfAB TARIGHAT OVEYSSI SHAHMAGHSOUDI ISCHOOL OF ISLAMIC SUFISM) TRUSTEES, REPORT {coiifiNUED) FOR THE YEAR ENDED 31 DECEMBER 2022 The tru5tees' report was approved by the Board ofTrv5tee H Rahbari T￿slee 30 October 2023

MAKTAB TARIGHAT OVEYSSI SHAHMAGHSOUDI (SCHOOL OF ISLAMIC SUFISM)

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2022

The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

MAKTAB TARIGHAT OVEYSSI SHAHMAGHSOUDI (SCHOOL OF ISLAMIC SUFISM)

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF MAKTAB TARIGHAT OVEYSSI SHAHMAGHSOUDI (SCHOOL OF ISLAMIC SUFISM)

I report to the trustees on my examination of the financial statements of Maktab Tarighat Oveyssi Shahmaghsoudi (School of Islamic Sufism) (the charity) for the year ended 31 December 2022.

Responsibilities and basis of report

As the trustees of the charity 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 charity’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

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:

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.

Nigel Walfisz FCA MGR Weston Kay LLP

55 Loudoun Road St John's Wood London NW8 0DL

Dated: 30 October 2023

MAKTAB TARIGHAT OVEYSSI SHAHMAGHSOUDI (SCHOOL OF ISLAMIC SUFISM)

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:
Investments 3 52,868 52,866
Expenditure on:
Raising funds 4 4,771 6,100
Charitable activities 5 8,790 3,480
Total expenditure 13,561 9,580
Net gains/(losses) on investments 40,000 -
Net income for the year/
Net movement in funds 79,307 43,286
Fund balances at 1 January 2022 912,392 869,106
Fund balances at 31 December 2022 991,699 912,392

All income and expenditure derive from continuing activities.

The notes on pages 8 to 12 form part of these financial statements.

MAicfAB TARIGHAT OVEYSSI SHAHMAGHSOUDI (SCHOOL OF ISLAMIC SUFISM) BALANCE SHEEr AS AT 31 DECEMBER 2021 2022 2021 Notes Flxed •ssets Investment property io 780,000 740,000 Current assets Debtors Cash at bank and in hand li 4,157 238,276 4.156 185,409 242,433 189.565 CredJtor5: amounts falllng due wlthln one Year 12 130.7341 117,1731 Net cumt assets 211.699 172,392 Totsl issets Itss currtnt Ilablllties 991,699 912,392 Income funds Unrestrirted funds 991,699 912.392 991.699 912,392 The note5 on pages 8t0 12 form part of these thnancial statements. The financial statements were approved bythe Trustees on 30 OrtobeT 2023 H Rahbori Trustee

MAKTAB TARIGHAT OVEYSSI SHAHMAGHSOUDI (SCHOOL OF ISLAMIC SUFISM)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

1.1 Accounting convention

The accounts have been prepared in accordance with applicable accounting standards, "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)" and the Charities Act 2011. The charity is a Public Benefit Entity 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 have been prepared under the historical cost convention. 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 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.

1.3 Charitable funds

General unrestricted funds represent unrestricted income which is expendable at the discretion of the Trustees in the furtherance of the objects of the charity. Such funds may be held in order to finance working capital.

Restricted funds represent income received which are allocated by the donor for specific purposes which are therefore not available for other purposes.

1.4 Incoming resources

Rent receivable is accrued on a day to day basis.

1.5 Resources expended

All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities.

Charitable activities include costs of services and support costs.

Governance costs are those costs incurred in the management of the charity’s assets, organisational administration, and compliance with constitutional and statutory requirements.

Cost of raising funds are those associated with rental and investment income.

1.6 Investment properties

Fixed asset investments are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the statement of financial activities in the year of disposal. Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the statement of financial activities based on the market value at the year end.

Investment properties are included in the balance sheet at their open market value as estimated by the trustees. Depreciation is provided only on those investment properties which are leasehold and where the unexpired lease term is less than 20 years.

MAKTAB TARIGHAT OVEYSSI SHAHMAGHSOUDI (SCHOOL OF ISLAMIC SUFISM)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

(Continued)

1.7 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8 Creditors

Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount.

1.9 Foreign exchange

Transactions denominated in foreign currencies are recorded at the rate ruling at the date of transaction.

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. All differences are included in net outgoing resources.

1.10 Taxation

The charity is exempt from tax on income and gains falling within the Taxes Act 1988, s. 505 or the Taxation of Chargeable Gains Act 1992, s. 252 to the extent that these are applied to its charitable objectives.

The charity is not VAT registered. As such, expenditure is shown inclusive of VAT.

2 Critical accounting estimates and judgements

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.

Valuation of investment properties

As described in note 10 to the financial statements, investment properties are stated at fair value. The trustees based this on observable market prices.

3 Investments

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Rental income 52,868 52,866

MAKTAB TARIGHAT OVEYSSI SHAHMAGHSOUDI (SCHOOL OF ISLAMIC SUFISM)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

4 Raising funds

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Investment property costs 4,771 6,100
4,771 6,100
Charitable activities
2022 2021
£ £
Share of governance costs (see note 6) 8,790 3,480

5 Charitable activities

6 Support costs

Support costs
Governance
costs
£
£
Independent examiner fees
-
3,690
Legal and professional
-
5,100
-
8,790
Analysed between
Charitable activities
-
8,790		 2022 Support costs
Governance
costs
£
£
£
3,690
-
3,480
5,100
-
-
8,790
-
3,480
8,790
-
3,480		 2021
£
3,480
-
3,480
3,480

Governance costs represents the support costs incurred in administering, the management of charity affairs and complying with its statutory and constitutional obligations.

7 Trustees

The average number of Trustees during the year was 3 (2021: 3).

No Trustee or person connected by business to them, has received any remuneration or benefits in kind from the Charity during the year (2021 - £Nil).

The Trustees are named as Additional Assureds under the liability insurances of the Charity at no additional cost.

During the year no Trustees (2021: none) received reimbursement of travel, subsistence and other expenditure.

MAKTAB TARIGHAT OVEYSSI SHAHMAGHSOUDI (SCHOOL OF ISLAMIC SUFISM)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

8 Employees

There were no employees during the year.

9 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.

10 Investment properties

Investment properties
Fair value
At 1 January 2022
Net gain through fair value adjustments
At 31 December 2022		 2022
£
740,000
40,000
780,000

The investment properties are stated in the accounts at the Trustees' estimate of market value at the balance sheet date. There has been no valuation by an independent party.

11 Debtors

Debtors
Amounts falling due within one year:
Trade debtors
Creditors: amounts falling due within one year
Trade creditors
Accruals and deferred income		 2022
£
4,157
2022
£
5,383
25,351
30,734		 2021
£
4,156
2021
£
313
16,860
17,173

12 Creditors: amounts falling due within one year

MAKTAB TARIGHAT OVEYSSI SHAHMAGHSOUDI (SCHOOL OF ISLAMIC SUFISM)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

13 Analysis of net assets between funds
Unrestricted Unrestricted
funds funds
2022 2021
£ £
Fund balances at 31 December 2022 are represented by:
Investment properties 780,000 740,000
Current assets/(liabilities) 211,699 172,392
991,699 912,392

14 Related party transactions

The charity made donations or loans, shared costs with or received income from other charities which form part of the global organisation using the name MTO.

Creditors include £313 (2021: £313) due to MTO USA.

Accruals include £15,070 (2021: £6,280) due to MTO CIO for expenses which have not been reimbursed. During the year, expenses of £8,790 (2021: £6,280) was paid for by the CIO.

15 Charity information

Maktab Tarighat Oveyssi Shahmaghsoudi (School of Islamic Sufism) is a charity incorporated in England and Wales. The principal place of business is 23 Edison Road, Crouch End, London, N8 8AE.

The accounts are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.