**Charity Registration No. 1192770**
## **PAK7 INTERNATIONAL CIO**
**TRUSTEES' REPORT AND UNAUDITED ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **PAK7 INTERNATIONAL CIO**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** A Mahand Bishop M Nazir-Ali A Mall N Khan **Charity number** 1192770 **Principal address** Marlborough House 2 Charnwood Street Derby DE1 2GT **Independent examiner** Azets Audit Services Gladstone House 77-79 High Street Egham Surrey TW20 9HY United Kingdom
## **PAK7 INTERNATIONAL CIO**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 4|
|Independent examiner's report|5|
|Statement of financial activities|6|
|Balance sheet|7|
|Notes to the accounts|8 - 12|
## **PAK7 INTERNATIONAL CIO**
## **TRUSTEES' REPORT** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
The Trustees present their first report and accounts of the charity for the year ended 31 December 2022.
## **Structure, governance and management**
The charity was established as a Charitable Incorporated Organisation on 14 December 2020.
The trustees who served during the year were:
U Ashiq (Resigned 4 November 2022) A Sumera (Resigned 4 November 2022) Dr J Benita DIn (Resigned 4 November 2022) Y Naseer (Resigned 4 November 2022) Father A Charles (Resigned 26 March 2022) A Mahand Rev C Young (Resigned 4 November 2022) I Gill (Resigned 4 November 2022) Bishop M Nazir-Ali Dr M Kamil (Resigned 4 November 2022) G Bell (Resigned 4 November 2022) Rev Z Sadiq (Resigned 4 November 2022) A Sandhu (Resigned 16 May 2023) Dr F Nazir (Resigned 4 November 2022) A Mall T Waris (Resigned 10 May 2023) N Khan Bishop A Marshall (Resigned 24 August 2023)
Management is delegated on a daily basis to the Chief Executive Officer.
## **Objectives and activities**
The objects of the CIO are, for the public benefit, to advance the Christian religion throughout the United Kingdom and Pakistan in accordance with the statement of faith.
To this end PAK7 International works with partners in Pakistan in 4 key areas:
1. Programs for National TV: that change attitudes to Christians and the Gospel.
2. Programs for Christian TV: where we strengthen the church and invest in the next generation.
3. Social Media: where videos lead to online chat about issues of life and faith.
4. Capacity Building: by investing in media training and equipment.
## **Public benefit statement**
Section 4 of the Charities Act 2011 require charity trustees to comply with their duty to have due regard to public benefit guidance published by the Charity Commission in exercising their power and duties.
The trustees have referred to the guidance regarding our aims and objectives and when planning future activities. We have also considered how our planned activities will contribute to the aims and objectives we have set.
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## **PAK7 INTERNATIONAL CIO**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **Achievements and performance**
Programs for National Television
- PAK7 partnered with a Drug Rehabilitation Centre in Pakistan to renovate their meeting rooms, dining room, outdoor spaces and to televise the process. This TV programme also enabled the Centre to show how it was serving people of all faiths in the community.
- A business program was produced that showed people of different faiths sharing their experiences with one another. This show also portrayed Christians in Pakistan in a positive way, as educated and successful people in the nation.
- These programs help to foster good relationships between people of all faiths in Pakistan, and show the positive ways that Christians are serving their nation.
## Programs for Christian Television
- In April 2022, PAK7 was able to launch a satellite TV channel for Pakistan, on the AsiaSat 7 satellite.This channel launched with 4 hours per day of kids content, with the rest being music videos
- A large number of programmes were produced by PAK7 partners in 4 production centres across Pakistan. These included programs for children, youth and women.
- Key programmes made for children included: Christian music videos, Little Detectives (about caring for the environment), Story Camp (where Bible stories are taught by 2 puppets), and Christmas and Easter shows.
- Women’s programs included a magazine show called Daughter of Eve with interviews, a house band and a cooking segment; a counselling show called Best Friend; Women of the Bible, a discussion show with clips of Bible stories.
- Youth programs included Perspectives, a discussion show about short dramas and Christian music for young people.
- Viewing statistics are not currently available for the channel and audience research is likely to be conducted in 2023 to better understand the impact on viewers of this content.
## Social Media
- PAK7 and its partners produced a number of videos to be shown on Facebook and other online platforms, that addressed felt-needs like: loneliness, anger, forgiveness, etc.
- Audiences who responded to these videos were able to contact our support team and talk about their challenges and experiences.
- In 2022 our videos were watched over 24 million times and over 40,000 people contacted us for help through online chat. We were able to pray with many of these people and help them by sharing articles about the Christian faith.
## Capacity Building
- Through our partners we ran a 10-week residential Media Training course for 23 young Pakistani Christians to help them grow in their faith and to learn how to communicate that faith through video. The course covered storytelling, pre-production, camera skills, audio, lighting, editing.
- To facilitate the running of this course we rented a training centre in the hills above Islamabad on a 3- year lease. This will be a permanent training centre where we can run a number of courses in future years.
- At the end of the course we invited all of the graduating students to join a 12 month internship program where they could continue to practise their skills.
- PAK7 also ran 4 week-long video skills courses in different cities across Pakistan where local charities and churches were able to send their people to learn how to use the media.
- In total PAK7 has trained over 100 young people to use the media in 2022.
- A 4th office was opened during 2022 with a partner in Faisalabad. This, in addition to the 3 partner offices already in place, has grown the number of video production units to 7 which is enabling us to make more quality Christian programming for the channel.
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PAK7 INTERNATIONAL CIO
TRUSTEES, REPORT {CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
Risks and uncertainties
As a relatively new charity, PAK7 Intemational's challenges are frequenuy resource based.
.Firslly, finding sufficient numbers of stsff th gwj media skills is a challenge. It is paruy for this reason
that PAK7 ran a comprehensive set of training courses and intemships.
.Secondly. building reliable income streams take5 time, and although PAK7 met its income budget,
cashflows were al times under pressure.
.Thirdly, although out of our control, Pakistan'5 economic situakn.on has been challenging including a
balance of payments issue, depleted foreign currency reserves and high inflation. In general this h85
benefited PAK7 as our funds go fvrther. but the volatility h8$ made some 8Ctivilies (like importing
equipmenll harder.
Financial review
PAK7 International w8$ the benefi¢i8ry of a number of gr8nts from ils sister charity PAK7 US, a registered
5011¢13 in the USA. which a¢¢ounled for much of the in¢ome_ PAK7 US raises funds in the name of PAK7, and is
fully aligned with the aims and objectives of PAK7 International.
A small number of UK donors provided a monthly income to support the work. although fvndraising in the UK has
been haMped by our inability to Secu a UK bank account.
Overall PAK7 Intemational raised sufficient fvnds to meet ils obligations during the period.
PAK7 International has a reserves policy to hold 3 months of planned expenditure of reserves to ensure
continued financial security and to provide for contingencies. However. thus far insufficient funds have been
raised lo enable this policy to be applied. Note. that these reserves may be held by PAK7 sister charities around
the world.
Plans for the futur•
PAK7 Intemational plans to run ongoing media training courses in Pakistan in 2023.
With regards lo the operation of the channel, it is important that we continue lo produ more and better
prograwming lo build the audience and communicate the positive messaging that we want to encourage local
Christians and lo be a good witness to people of other faiths. In 2023 we hope to increase programming hours to
9 hours per day by the end of the year lup from 4 hours per day in 20221.
Audience research is planned for 2023 that wll enable us to better understsnd the needs of our viewers. and to
understsnd the impact that our programs are having on them.
Soc181 Media a¢livilies will continue lo Sha our messaging people across Pakislan, and we hope to 8SSlSt
similar numbers of people in 2023140.0(X)+ people).
PAK7 INTERNATIONAL CIO
TRUSTEES. REPORT {CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
Statement of trust••s' r•sponslbllltl•s
The trustees are responsible for preparing the Trustees. Rerx)rt and the accounts 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 accounts 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 period.
In preparing these accounts, the trustees are required to=
select suitable accounting policjes and then appty them consistenY',
- observe the methods and principles in the ChaTrtie5 SORP..
make judgements and estimates that are reasonable and PTudenl-
slate whether applicable accounting stsndards have been followed, subject lo any material departures
disclosed and explained in the accounts,. and
prepare the accounts on the going COnM basis unless it is in8ppropriale lo pSUrne that the charity will
continue in opeolion_
The trustees are responsible for keeping suffi¢ient a¢¢ounting records that disclose with reasonable a¢curaw al
any lime the financial position of the Charity and enable them to ensure that the a¢¢ounts Comply with the
Charities Act 2011 and the provisions of the trust deed. They are alg) responsible for safeguarding the assets of
the ¢harity and hence for taking 8$Onable steps for the prevention and dete¢tion of fraud and other
irregularities.
On behalf of the iK)ard of trustees
J/Lwrtly
Monsignor M Nazir-Ali
Trustee
Dated.. 24th October 2023
## **PAK7 INTERNATIONAL CIO**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF PAK7 INTERNATIONAL CIO**
I report on the accounts of the charity for the year ended 31 December 2022, which are set out on pages 6 to 12.
## **Respective responsibilities of trustees and examiner**
The charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. The charity’s gross income exceeded £250,000 and I am qualified to undertake the examination being a qualified member of .
It is my responsibility to:
- (i) examine the accounts under section 145 of the 2011 Act;
- (ii) to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
- (iii) to state whether particular matters have come to my attention.
## **Basis of independent examiner's report**
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
## **Independent examiner's statement**
In connection with my examination, no matter has come to my attention:
- (a) which gives me reasonable cause to believe that in any material respect the requirements:
- (i) to keep accounting records in accordance with section 130 of the 2011 Act; and
- (ii) to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act;
have not been met; or
- (b) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Paul Creasey FCA Azets Audit Services
Gladstone House 77-79 High Street Egham Surrey TW20 9HY United Kingdom 27 October 2023 Dated: .........................
- 5 -
## **PAK7 INTERNATIONAL CIO**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
|**Notes**
**Incoming resources from generated funds**
Donations and legacies
**2**
**Resources expended**
**3**
**Costs of generating funds**
Costs of generating donations and legacies
**Net incoming resources available**
**Charitable activities**
Activities undertaken and support costs
Governance costs
**Total resources expended**
**Net income for the year/**
**Net movement in funds**
Fund balances at 1 January 2022
**Fund balances at 31 December 2022**|**2022**
**£**
**707,077**
**31,833**
**675,244**
**634,503**
**15,445**
**681,781**
**25,296**
**11,348**
**36,644**|2021
£
232,253|
|---|---|---|
|||8,767|
|||223,486
207,989|
|||4,149|
|||220,905|
|||11,348
-|
|||11,348|
- 6 -
## **PAK7 INTERNATIONAL CIO**
## **BALANCE SHEET**
## _**AS AT 31 DECEMBER 2022**_
|**2022**
**Notes**
**£**
**Current assets**
Debtors
**10**
**60,225**
**Creditors: amounts falling due within**
**one year**
**11**
**(23,581)**
**Total assets less current liabilities**
**Income funds**
Unrestricted funds|**£**
**36,644**
**36,644**
**36,644**|2021
£
15,308
(3,960)|£
11,348|
|---|---|---|---|
||||11,348|
||||11,348|
The accounts were approved by the Trustees on ......................... 24th October 2023
.............................. Bishop M Nazir-Ali **Trustee**
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## **PAK7 INTERNATIONAL CIO**
## **NOTES TO THE ACCOUNTS** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **1 Accounting policies**
## **1.1 Basis of preparation**
PAK7 International CIO is a charitable incorporated organisation registered with the Charity Commission in England & Wales. The office address is Marlborough House, 2 Charnwood Street, Derby, Derbyshire, DE1 2GT.
The accounts have been prepared in accordance with applicable accounting standards, the Statement of Recommended Practice, "Accounting and Reporting by Charities" ("The Charities SORP FRS 102), effective 1 January 2019 and the Charities Act 2011.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
## **Going concern**
The trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future being for a period of at least 12 months from the approval of these financial statements and believe that it remains appropriate to prepare the financial statements on a going concern basis.
## **1.2 Incoming resources**
Donations are recognised when the company has entitlement to the income, it is probable that the income will be received and the amount can be measured reliably.
## **Donated services and facilities**
Donated services and facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
## **1.3 Resources expended**
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
## **Expenditure on charitable activities**
Expenditure on charitable activities comprise those costs incurred by the charity in the delivery of its activities and services for its beneficiaries, It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
## **Governance costs**
Governance costs includes those costs associated with the constitutional and statutory requirements of the charity and include the independent examiner's fees and costs linked to the strategic management of the charity.
## **1.4 Trade and other payables**
Trade and other payables are measured at their transaction price unless the arrangement constitutes a financing transaction in which case the transaction is measured at present value of future payments discounted at prevailing market rate of interest. Other financial liabilities are initially measured at fair value net of their transaction costs. They are subsequently measured at amortised cost using the effective interest method.
- 8 -
## **PAK7 INTERNATIONAL CIO**
## **NOTES TO THE ACCOUNTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **1 Accounting policies**
## **(Continued)**
## **1.5 Fund accounting**
Unrestricted funds are available to spend on activities that further any of the purposes of charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the Trust’s work or for specific artistic projects being undertaken by the Trust.
## **2 Donations and legacies**
|**3**
**4**|Gifts in kind
Donations
**Total resources expended**
**Costs of generating funds**
Costs of generating donations and legacies
**Charitable activities**
Activities undertaken and support costs
Activities undertaken directly
Support costs
Total
**Governance costs**
**Costs of generating donations and legacies**
Staff costs
Software
Office supplies
Travel
Subsistence|**2022**
**£**
**681,781**
**25,296**
**707,077**
**2022**
**£**
**31,833**
_502,758_
_131,745_
**634,503**
**15,445**
**681,781**
**2022**
**£**
**26,720**
**-**
**206**
**4,276**
**631**
**31,833**|2021
£
217,323
14,930|
|---|---|---|---|
||||232,253|
||||2021
£
8,767
_137,885_
_70,104_
207,989
4,149|
||||220,905|
||||2021
£
-
174
-
8,407
186|
||||8,767|
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## **PAK7 INTERNATIONAL CIO**
## **NOTES TO THE ACCOUNTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **5 Activities undertaken directly**
|Staff costs
Utilities
Rent
Maintenance and repairs
Office supplies
Production costs
Contractors
Software
Legal and professional fees
Education and training
Travel
Subsistence
Bank charges|**2022**
**£**
**64,128**
**1,202**
**40,385**
**3,647**
**11,168**
**184,429**
**178,068**
**631**
**12,690**
**661**
**5,270**
**119**
**360**
**502,758**|2021
£
-
-
-
118
71
33,897
45,855
2,058
3,567
48,308
406
-
3,605|
|---|---|---|
|||137,885|
**6 Support costs**
|Staff costs
Repairs and maintenance
Rent
Office supplies
Telephone and fax
Postage and stationery
Contractors
Software
Legal and professional fees
Insurance
Education and training
Travelling expenses
Subsistence
Subscriptions
Bank charges
Marketing
Sundry expenses
Fines and penalties|**2022**
£
**16,032**
**9,149**
**17,542**
**1,111**
**505**
**2**
**15,007**
**5,218**
**31,264**
**1,649**
**6,982**
**23,382**
**2,193**
**1,005**
**672**
**-**
**-**
**32**
**131,745**|2021
£
3,220
534
2,101
118
128
34
30,344
1,006
407
2,362
1,098
16,558
450
375
717
6,511
4,140
-|
|---|---|---|
|||70,104|
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## **PAK7 INTERNATIONAL CIO**
## **NOTES TO THE ACCOUNTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **7 Governance costs**
|Auditors remuneration
Trustee expenses|**2022**
**£**
**4,500**
**10,945**
**15,445**|2021
£
3,960
189|
|---|---|---|
|||4,149|
## **8 Trustees**
The only transactions with the trustees relate to the reimbursement of reasonable travel costs to attend meetings held by the charity of £10,945 (2021: £16,990).
No remuneration was paid to the Trustees in the year.
## **9 Employees**
## **Number of employees**
The average monthly number of employees during the year was:
|Employees
**Employment costs**
Wages and salaries
Social security costs
Other pension costs
There were no employees whose annual remuneration was £60,000 or more.
**10**
**Debtors**
Amounts owed by group undertakings
Other debtors|**2022**
**Number**
**3**
**2022**
**£**
**96,905**
**3,381**
**6,594**
**106,880**
**2022**
**£**
**28,112**
**32,113**
**60,225**|2021
Number
2|
|---|---|---|
|||2021
£
1,000
1,197
1,023|
|||3,220|
|||2021
£
-
15,308|
|||15,308|
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## **PAK7 INTERNATIONAL CIO**
## **NOTES TO THE ACCOUNTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
|**11**
**Creditors: amounts falling due within one year**
Other taxation and social security
Accruals|**2022**
**£**
**7,940**
**15,641**
**23,581**|2021
£
-
3,960|
|---|---|---|
|||3,960|
## **12 Unrestricted funds**
|||**Movement in**|**funds**|||
|---|---|---|---|---|---|
||**Balance at 1**|**Income**|**Expenditure**||**Balance at 31**|
||**January 2022**|||**December 2022**||
||**£**|**£**|**£**||**£**|
|**Unrestricted funds**|11,348|707,077|(681,781)||**36,644**|
||11,348|707,077|(681,781)||**36,644**|
## **13 Related parties**
Costs totalling £681,781 (2021: £217,323) were paid in the period and subsequently donated to the charity by PAK7 US, a related not for profit entity with trustees and objectives in common.
The Chief Executive is also remunerated for his services by PAK7 US and the associated costs totalling £53,931 (2021: £nil) are recognised in these financial statements.
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