**Charity Registration No. 1192770**
## **PAK7 INTERNATIONAL CIO**
**TRUSTEES' REPORT AND UNAUDITED ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023**
## **PAK7 INTERNATIONAL CIO**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** A Mahand Monsignor 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
## **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 - 13|
## **PAK7 INTERNATIONAL CIO**
## **TRUSTEES' REPORT** _**FOR THE YEAR ENDED 31 DECEMBER 2023**_
The Trustees present their first report and accounts of the charity for the year ended 31 December 2023.
## **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: A Mahand Monsignor M Nazir-Ali A Sandhu (Resigned 16 May 2023) 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 improve relationships between people of different faiths, and 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, relationships 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.
## **Achievements and performance**
Programs for National Television
- PAK7 produced a flood documentary that tracked the progress of several individuals who had been affected by the 2022 floods, showing how Christians were supporting people of all faiths on the long road to recovery.
- Another exciting program for children called Asool School helped them to learn skills for life like how to call an ambulance, how to stay safe on the roads, and how to behave in a variety of circumstances
- 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.
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## **PAK7 INTERNATIONAL CIO**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2023**_
Programs for Christian Television in Pakistan
- A large number of programs were produced by PAK7 partners in 4 production centres across Pakistan (Rawalpindi, Lahore, Faisalabad, Karachi). These included programs for children, youth and women.
- Key programs made for children included: Christian music videos, Little Detectives Season 3 (about caring for the environment), Learn and Pass it on (where school children learned about the key sections of the Bible), and a fabulous Bible game show that involved over 100 children.
- Women’s programs were once again a focus and we made further seasons of Women of the Bible and Best Friend. We also made a testimony program which featured dramatised retellings of people’s life stories and how God had been real to them in those situations.
- Youth programs included a Discover Bible Study show that featured a group of young people exploring the Bible together, a film review programme and Christian music for young people.
- The TV channel celebrated its first year on air in April 2023, although as yet viewing statistics are not available for the channel and audience research is now likely to be conducted in 2024 to better understand the impact on viewers of this content.
## Social Media in Pakistan
- 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 2023 our videos were watched over 20 million times and over 60,000 people contacted us for help through online chat. We were able to pray with over 4,000 of these people and help them by sharing about the Christian faith and provision of online Bibles.
Capacity Building in Pakistan and in the UK
- 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.
- At the end of the course we invited 13 of the graduating students to join a 12 month internship program where they could continue to practise their skills.
- PAK7 also ran 6 one week 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 120 young Pakistanis to use the media in 2023.
- We made an investment in our fundraising capacity to enable us to broaden the base of donors and ultimately grow revenue from UK & Europe.
## **Risks and uncertainties**
As a relatively new charity, PAK7 International’s challenges are frequently resource based.
- Firstly, finding sufficient numbers of staff with good media skills is a challenge. It is partly for this reason that PAK7 continues to run a comprehensive set of training courses and internships.
- Secondly, building reliable income streams takes time, and although PAK7 met its income budget,
- cashflows were at times under pressure.
- Thirdly, although out of our control, Pakistan’s economic situation has been challenging including a balance of payments issue, depleted foreign currency reserves and high inflation. In general this has benefited PAK7 as our funds go further, but the volatility has made some activities (like importing equipment) harder.
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## **PAK7 INTERNATIONAL CIO**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2023**_
## **Financial review**
PAK7 International was the beneficiary of a number of grants from its sister charity PAK7 US, a registered 501(c)3 in the USA, which accounted for much of the income. 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 fundraising in the UK has been hampered by our inability to secure a UK bank account. No reasons are given by UK banks as to why account applications have been rejected, but it is thought that this is due to perceived risks of sending funds to Pakistan and fear of sanctions. Notably many other UK charities have been similarly poorly treated by the banks.
Overall PAK7 International raised sufficient funds to meet its 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 to enable this policy to be applied. Note, that these reserves may be held by PAK7 sister charities around the world.
## **Plans for the future**
PAK7 International plans to run ongoing media training courses in Pakistan in 2024, and to extend the number of one-week courses to include two new cities: Hyderabad and Quetta.
With regards to the operation of the channel, it is important that we continue to produce more and better programming to build the audience and communicate the positive messaging that we want to encourage local Christians and to be a good witness to people of other faiths. We will continue to focus on children, youth and women - although hope to increase the entertainment value of our programs, recognising that we need to compete for audience attention.
Audience research is planned for 2024 that will enable us to better understand the needs of our viewers, and to understand the impact that our programs are having on them.
Social Media activities will continue to share our messaging with people across Pakistan, and we are now working with partner organisations to improve the follow up with those who want to learn more about the Christian faith.
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## **PAK7 INTERNATIONAL CIO**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2023**_
## **Statement of trustees' responsibilities**
The trustees are responsible for preparing the Trustees' Report 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 policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the accounts; and
- prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
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 accounts comply with the Charities Act 2011 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.
On behalf of the board of trustees
.............................. **Monsignor M Nazir-Ali** Trustee Dated: ......................... 31st August 2024
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## **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 2023, which are set out on pages 6 to 13.
## **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 Institute of Chartered Accountants in England and Wales.
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
Institute of Chartered Accountants in England and Wales Gladstone House 77-79 High Street Egham Surrey TW20 9HY United Kingdom 9 September 2024 Dated: .........................
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## **PAK7 INTERNATIONAL CIO**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 DECEMBER 2023**_
|**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 (expenditure)/income for the year/**
**Net movement in funds**
Fund balances at 1 January 2023
**Fund balances at 31 December 2023**|**2023**
**£**
**738,929**
**60,998**
**677,931**
**652,279**
**28,620**
**741,897**
**(2,968)**
**36,644**
**33,676**|2022
£
707,077|
|---|---|---|
|||31,833|
|||675,244
634,503|
|||15,445|
|||681,781|
|||25,296
11,348|
|||36,644|
- 6 -
## **PAK7 INTERNATIONAL CIO**
## **BALANCE SHEET**
## _**AS AT 31 DECEMBER 2023**_
|**2023**
**Notes**
**£**
**Current assets**
Debtors
**10**
**71,502**
**Creditors: amounts falling due within**
**one year**
**11**
**(37,826)**
**Total assets less current liabilities**
**Income funds**
Unrestricted funds|2022
**£**
£
60,225
(23,581)
**33,676**
**33,676**
**33,676**|£
36,644|
|---|---|---|
|||36,644|
|||36,644|
The accounts were approved by the Trustees on ......................... 31st August 2024 .............................. Monsignor M Nazir-Ali **Trustee**
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## **PAK7 INTERNATIONAL CIO**
## **NOTES TO THE ACCOUNTS** _**FOR THE YEAR ENDED 31 DECEMBER 2023**_
## **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 2023**_
## **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 charity’s work or for specific projects being undertaken by the charity.
## **2 Donations and legacies**
|**3**|Donations 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**|**2023**
**£**
**713,785**
**25,144**
**738,929**
**2023**
**£**
**60,998**
_592,047_
_60,232_
**652,279**
**28,620**
**741,897**|2022
£
681,781
25,296|
|---|---|---|---|
||||707,077|
||||2022
£
31,833|
||||_502,758_
_131,745_|
||||634,503|
||||15,445|
||||681,781|
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## **PAK7 INTERNATIONAL CIO**
## **NOTES TO THE ACCOUNTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2023**_
## **4 Costs of generating donations and legacies**
|Staff costs
Office studio/rental
Office supplies
Travel
Telephone
Printing
Postage & shipping
Education and training
Bank fees
Subsistence
Other expenses
**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
Subscriptions
Bank charges|**2023**
**£**
**50,468**
**252**
**224**
**8,243**
**47**
**30**
**66**
**547**
**34**
**878**
**209**
**60,998**
**2023**
**£**
**78,728**
**-**
**34,917**
**34,840**
**22,838**
**138,922**
**238,399**
**3,023**
**18,870**
**6,922**
**12,261**
**1,232**
**720**
**375**
**592,047**|2022
£
26,720
-
206
4,276
-
-
-
-
-
631
-|
|---|---|---|
|||31,833|
|||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|
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## **PAK7 INTERNATIONAL CIO**
## **NOTES TO THE ACCOUNTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2023**_
## **6 Support costs**
|**6**
**Support costs**||||
|---|---|---|---|
|Staff costs
Repairs and maintenance
Rent
Office supplies
Telephone and fax
Printing
Postage and stationery
Contractors
Software
Legal and professional fees
Insurance
Education and training
Travelling expenses
Subsistence
Subscriptions
Bank charges
Exchange gain or loss
Fines and penalties
**7**
**Governance costs**
Auditors remuneration
Trustee expenses||**2023**
£
**37,749**
**-**
**656**
**1,638**
**368**
**184**
**13**
**-**
**2,855**
**4,134**
**1,757**
**48**
**7,908**
**430**
**265**
**988**
**487**
**752**
**60,232**
**2023**
**£**
**4,500**
**24,119**
**28,620**|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|
||||2022
£
4,500
10,945|
||||15,445|
## **8 Trustees**
The only transactions with the trustees relate to the reimbursement of reasonable travel and subsistence costs to attend meetings held by the charity of £24,119 (2022: £10,945).
No remuneration was paid to the Trustees in the year.
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## **PAK7 INTERNATIONAL CIO**
## **NOTES TO THE ACCOUNTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2023**_
## **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|**2023**
**Number**
**5**
**2023**
**£**
**152,756**
**15,222**
**8,966**
**176,944**|2022
Number
3|
|---|---|---|
|||2022
£
96,905
3,381
6,594|
|||106,880|
There was one employee whose annual remuneration was £60,000 or more. In 2022, this employee's wages were paid by PAK7 US Inc for part of the year.
|**10**
**Debtors**
Amounts owed by group undertakings
Other debtors
Prepayments
Accrued Income
**11**
**Creditors: amounts falling due within one year**
Other taxation and social security
Accruals|**2023**
**£**
**-**
**57,214**
**4,046**
**10,242**
**71,502**
**2023**
**£**
**29,066**
**8,760**
**37,826**|2022
£
28,112
12,492
-
19,621|
|---|---|---|
|||60,225|
|||2022
£
7,940
15,641|
|||23,581|
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## **PAK7 INTERNATIONAL CIO**
## **NOTES TO THE ACCOUNTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2023**_
## **12 Unrestricted funds**
|||**Movement in**|**funds**|||
|---|---|---|---|---|---|
||**Balance at 1**|**Income**|**Expenditure**||**Balance at 31**|
||**January 2023**|||**December 2023**||
||**£**|**£**|**£**||**£**|
|**Unrestricted funds**|36,644|791,555|(751,144)||**77,055**|
||36,644|791,555|(751,144)||**77,055**|
## **13 Related parties**
Costs totalling £752,644 (2022: £681,781) were paid in the period and subsequently donated to the charity by PAK7 US Inc, a related not for profit entity with trustees and objectives in common.
The Chief Executive is also remunerated for his services by PAK7 US Inc and the associated costs totalling £nil (2022: £17,829) are recognised in these financial statements.
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