Charity registration number: 289194
Khaniqah-I-Nimatullahi
Annual Report and Financial Statements for the Year Ended 31 December 2020
Khaniqah-I-Nimatullahi
Contents
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' Report | 2 to 4 |
| Statement of Trustees' Responsibilities | 5 |
| Independent Examiner's Report | 6 |
| Statement of Financial Activities | 7 |
| Balance Sheet | 8 |
| Notes to the Financial Statements | 9 to 15 |
Khaniqah-I-Nimatullahi
Reference and Administrative Details
Trustees Dr A Nurbakhsh Mr N W Johnston Mrs S Johnston Mrs Y Zellipour Mr A May Mr H Nourbakhsh Principal Office 41 Chepstow Place London W2 4TS Charity Registration Number 289194 Bankers Lloyds Bank PLC 12 High Street Banbury Oxfordshire OX16 5EF Independent Examiner Jonathan Russell F.C.A. Just Audit & Assurance Ltd 4 South Bar Street Banbury Oxfordshire OX16 9AA
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Khaniqah-I-Nimatullahi
Trustees' Report
The trustees present the annual report together with the financial statements of the charity for the year ended 31 December 2020.
The financial statements have been prepared in accordance with 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 2015 - (Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
Objectives and activities
Objects and aims
The principal objectives of the charity are to promote the spiritual teaching of Sufism, to establish and maintan Khaniqahs (Sufi houses) and to provide means to facilitate the communication of the principles and teachings of Isalm and Sufism.
Public benefit
The Charity's establishment and learning methods are open to all who wish to study the principles and teaching of Islam and Sufism.
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Khaniqah-I-Nimatullahi
Trustees' Report
Secretary's Summary Report
As the Covid pandemic continues in its second year, the Trust has tried to maintain contact with its members coordinated both internationally and through each centre world wide, namely:
1 - Online meditation speech and music has been broadcasted and shared amongst all centres twice weekly 2 - Both biannual magazines, in Persian and English, are now published in a digital format online. The Persian magazine is offered free of charge, while the English magazine is offered under subscription. All centres remain closed for attending in person, while guidelines are issued for all centres to observe as they move out of isolation.
The Trust has also continued to be directly involved in overlooking the operational affairs of all its sister charities established in Canada, United States, Africa (including the running of the charitable Health centre in Abidjan, Ivory Coast), Australia and Europe.
The UK Trust acts as the centre for all other related sister charities. A number of annual events and occasional conferences and concerts provide a forum for members of all these centres to get together. However, once again due to the Covid pandemic, no international or local events have been held by any of our centres internationally.
Charity Work
The Trust has been unable to coordinate any work in community efforts due to the restrictions imposed due to Covid, as well as members reluctance to participate in any group work for the same reason.
Review of the publications
Both the English and Persian magazines are now offered in the digital format online. The Persian magazine is offered free of charge, while the English magazine is offered under subscription. Both magazines are compiled through a new team of volunteers, and managed by Safoura Nourbakhsh, who resides in Washington DC, USA. Older versions of both magazines are offered in both paper and digital format. No new books were published in either Language this year.
Review of the loans and loan repayments
All centres which have an outstanding loan with the UK charity are paying off their loans on a regular basis, except for:
Austria, Benin (Porto Novo and Parako) and the Russian centres.
Review the status of officers working for the association
All Trustees continue to provide their services free of charge.
Dr Alireza Nurbakhsh as the master of the order, a full member, Trustee and the president of the association works on a part time voluntary basis as the President of the Charity and has overall management responsibilities for the UK charity as well as all other related sister charities overseas. He has a direct influence over the continuous relationship between centres throughout the world. Beside his day to day occupation as a solicitor, he is also engaged in writing articles for the Sufi magazine in both English and Farsi language.
Mr Javad Zokaei assists in the household management of the London centre and the coordination of the voluntary work in the community initiatives by the London members.
Sholeh Johnston resigned from her position as a trustee on 6th November 2020.
Neil and Sima Johnston continue as trustees and voluntary workers assisting in the management of the site at Oxfordshire and the administrative responsibilities of the UK association.
Financial review
Policy on reserves
The Trustees consider that they have adequate reserves to maintain the operation of the Charity for the forseeable future.
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Khaniqah-I-Nimatullahi
Trustees' Report
Structure, governance and management
Major risks and management of those risks
The trustees have assessed the major risks to which the charity is exposed, in particluar those related to the operations and finace, and are satisfied that internal control systems are adequate and procedures are in place to mitigate any exposure to the major risks.
The annual report was approved by the trustees of the charity on .................... and signed on its behalf by:
......................................... Mrs S Johnston Trustee
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Khaniqah-I-Nimatullahi
Statement of Trustees' Responsibilities
The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
The law applicable to charities 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 period. In preparing these financial statements, 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 financial statements; and
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper 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 applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees 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.
Approved by the trustees of the charity on .................... and signed on its behalf by:
......................................... Mrs S Johnston Trustee
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Khaniqah-I-Nimatullahi
Independent Examiner's Report to the trustees of Khaniqah-I-Nimatullahi
I report to the trustees on my examination of the accounts of the above charity (“the Trust”) for the year ended 31 December 2020.
As the charity's trustees, you are responsible for the preparation of the accounts in accordance Charities Act 2011 (the Act) .
I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's statement
In connection with my examination, no matter has come to my attention:
which gives me cause to believe that in, any material respect:
-
the accounting records were not kept in accordance with section 130 of the Charities act; or
-
the accounts did not accord with the accounting records: or
• the accounts did not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.
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.
...................................... Jonathan Russell F.C.A.
Just Audit & Assurance Ltd 4 South Bar Street Banbury Oxfordshire OX16 9AA
Date:.............................
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Khaniqah-I-Nimatullahi
Statement of Financial Activities for the Year Ended 31 December 2020
| Note Income and Endowments from: Donations and legacies 2 Other trading activities 3 Investment income 4 Other gains/losses 5 Total Income 5 Expenditure on: Charitable activities 6 Total Expenditure Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 15 2019 Note Income and Endowments from: Donations and legacies 2 Other trading activities 3 Investment income 4 Other gains/losses 5 Total Income Expenditure on: Charitable activities 6 Total Expenditure Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 15 |
Unrestricted £ 40,865 9,072 58,637 (4,219) 104,355 (210,873) (210,873) (106,518) 2,703,532 2,597,014 Unrestricted £ 167,655 19,471 63,743 41,364 292,233 (315,811) (315,811) (23,578) 2,727,111 2,703,533 |
Restricted £ 13,471 - - - 13,471 (33,451) (33,451) (19,980) 68,582 48,602 Restricted £ 11,345 - - - 11,345 (3,651) (3,651) 7,694 60,888 68,582 |
Total 2020 £ 54,336 9,072 58,637 (4,219) |
|---|---|---|---|
| 117,826 | |||
| (244,324) | |||
| (244,324) | |||
| (126,498) 2,772,114 |
|||
| 2,645,616 | |||
| Total 2019 £ 179,000 19,471 63,743 41,364 |
|||
| 303,578 | |||
| (319,462) | |||
| (319,462) | |||
| (15,884) 2,787,999 |
|||
| 2,772,115 |
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Khaniqah-I-Nimatullahi
(Registration number: 289194) Balance Sheet as at 31 December 2020
| Note Fixed assets Tangible assets 11 Current assets Debtors 12 Cash at bank and in hand Creditors: Amounts falling due within one year 13 Net current assets Total assets less current liabilities Creditors: Amounts falling due after more than one year 14 Net assets Funds of the charity: Restricted income funds Restricted funds 15 Unrestricted income funds Unrestricted funds Total funds 15 |
2020 £ 839,458 1,762,376 167,176 1,929,552 (123,395) 1,806,157 2,645,615 - 2,645,615 43,847 2,601,768 2,645,615 |
2019 £ 884,323 1,974,701 144,457 |
|---|---|---|
| 2,119,158 (152,875) |
||
| 1,966,283 | ||
| 2,850,606 (78,492) |
||
| 2,772,114 | ||
| 60,255 2,711,859 |
||
| 2,772,114 |
The financial statements on pages 7 to 15 were approved by the trustees, and authorised for issue on .................... and signed on their behalf by:
......................................... Mr N W Johnston Trustee
......................................... Mrs S Johnston Trustee
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Khaniqah-I-Nimatullahi
Notes to the Financial Statements for the Year Ended 31 December 2020
1 Accounting policies
Statement of compliance
The financial statements have been prepared in accordance with 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 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
Basis of preparation
Khaniqah-I-Nimatullahi meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
Income and endowments
Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.
Donations and legacies
Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources.
Charitable activities
Charitable expenditure comprises 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
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings.
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Khaniqah-I-Nimatullahi
Notes to the Financial Statements for the Year Ended 31 December 2020
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Tangible fixed assets
Individual fixed assets are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation and amortisation
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
Asset class Depreciation method and rate Furniture & Equipment 15% reducing balance Land & Buildings 15% Reducing balance/1% Straight line
Research and development
Research and development expenditure is written off as incurred.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
Loans/Other debtors
The charity's main purpose is to provide loans to overseas charities to set up centre's promoting the charities aims. These loans are given interest free with veriable terms of repayment. They are disclosed in the accounts at historical value as debtors due from group undertaking less any provision for non payment which the trustees consider prudent.
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Khaniqah-I-Nimatullahi
Notes to the Financial Statements for the Year Ended 31 December 2020
Foreign currencies
Transactions in foreign currencies are translated into sterling at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign foreign currencies are translated unto seterling at the closing rates at the balance sheet date and the exchange differences are included in the statement of financial activities.
2 Income from donations and legacies
| Donations and legacies; Legacies |
Unrestricted funds General £ 40,865 40,865 |
Restricted funds £ 13,471 13,471 |
Total 2020 £ 54,336 54,336 |
Total 2019 £ 179,000 |
|---|---|---|---|---|
| 179,000 |
3 Income from other trading activities
| Trading income; Publication sales Orchard sales 4 Investment income Interest receivable and similar income; Interest receivable on bank deposits Feed in tariff income Rental income 5 Other gains & losses Profit/(loss) on foreign currency |
Unrestricted General £ 2,526 6,546 9,072 Unrestricted General £ - 637 58,000 58,637 Note |
Total 2020 £ 2,526 6,546 9,072 Total 2020 £ - 637 58,000 58,637 2020 £ (4,219) |
Total 2019 £ 5,771 13,700 |
|---|---|---|---|
| 19,471 | |||
| Total 2019 £ 2 6,741 57,000 |
|||
| 63,743 | |||
| 2019 £ 41,364 |
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Khaniqah-I-Nimatullahi
Notes to the Financial Statements for the Year Ended 31 December 2020
Other gains & losses arises from currency gains and losses on loans to overseas charities in non sterling currencies.
6 Expenditure on charitable activities
Unrestricted
| Costs of publications Depreciation Premises costs Other costs Bad debt provision Donations Wages and salaries Governance costs |
General £ 5,464 44,865 51,878 50,996 - 500 46,065 11,105 210,873 |
Restricted £ - - - 451 - 33,000 - - 33,451 |
Total 2020 £ 5,464 44,865 51,878 51,447 - 33,500 46,065 11,105 244,324 |
Total 2019 £ 2,796 51,486 36,071 58,391 123,800 - 29,999 16,919 |
|---|---|---|---|---|
| 319,462 |
7 Analysis of governance and support costs
Governance costs
Unrestricted
| Accountancy and independent examiners fee Other office expenses Sundry and other costs 8 Net incoming/outgoing resources Net outgoing resources for the year include: Depreciation of tangible fixed assets |
General £ 5,256 4,300 1,549 11,105 |
Total 2020 £ 5,256 4,300 1,549 11,105 2020 £ 44,865 |
Total 2019 £ 6,750 6,755 3,414 |
|---|---|---|---|
| 16,919 | |||
| 2019 £ 51,486 |
9 Trustees remuneration and expenses
No trustees received any remuneration during the year.
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Khaniqah-I-Nimatullahi
Notes to the Financial Statements for the Year Ended 31 December 2020
10 Taxation
The charity is a registered charity and is therefore exempt from taxation.
11 Tangible fixed assets
| Cost At 1 January 2020 At 31 December 2020 Depreciation At 1 January 2020 Charge for the year At 31 December 2020 Net book value At 31 December 2020 At 31 December 2019 12 Debtors Due from sister charities |
Land and buildings £ 1,434,034 1,434,034 564,454 42,489 606,943 827,091 869,580 |
Furniture and equipment £ 86,556 86,556 73,463 2,376 75,839 10,717 13,093 |
Motor vehicles £ 2,200 |
Total £ 1,522,790 1,522,790 638,467 44,865 683,332 839,458 884,323 2019 £ 1,974,701 |
|
|---|---|---|---|---|---|
| 86,556 | 2,200 | ||||
| 73,463 2,376 |
550 - |
||||
| 75,839 | 550 | ||||
| 10,717 | 1,650 | ||||
| 13,093 | 1,650 | ||||
| 2020 £ 1,762,376 |
This represents loans made to overseas charities with the same aims across the world. The loans are repayable over various periods.
Loans have been advanced to charities in Abidjan, Benin, Holland, France, Spain, Canada, Sweden, Australia, Austria, Russia, Senegal, Germany, Burkina Faso, Switzerland and the United States of America.
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Khaniqah-I-Nimatullahi
Notes to the Financial Statements for the Year Ended 31 December 2020
13 Creditors: amounts falling due within one year
| 13 Creditors: amounts falling due within one year | |||
|---|---|---|---|
| Other loans Accruals 14 Creditors: amounts falling due after one year Other loans 15 Funds Balance at 1 January 2020 £ Incoming resources £ Unrestricted funds General General 2,703,532 104,354 Restricted funds Serving the Needy 5 433 Mexico fund 27,858 - Iran earthquake fund 23,500 - Abidjan Clinic 17,219 13,038 Total restricted funds 68,582 13,471 Total funds 2,772,114 117,825 |
2020 £ 119,141 4,254 123,395 2020 £ - Resources expended £ Transfers £ (210,873) - (388) - - (27,795) (10,048) (13,452) (23,015) 41,247 (33,451) - (244,324) - |
2019 £ 146,121 6,754 |
|
| 152,875 | |||
| 2019 £ 78,492 |
|||
| Balance at 31 December 2020 £ 2,597,013 50 63 - 48,489 |
|||
| 48,602 | |||
| 2,645,615 |
16 Analysis of net assets between funds
| Tangible fixed assets Current assets Current liabilities Total net assets |
Unrestricted funds General £ 839,458 1,885,705 (123,395) 2,601,768 |
Restricted funds £ - 43,847 - 43,847 |
Total funds 2020 £ 839,458 1,929,552 (123,395) |
|---|---|---|---|
| 2,645,615 |
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Khaniqah-I-Nimatullahi
Notes to the Financial Statements for the Year Ended 31 December 2020
| Tangible fixed assets Current assets Current liabilities Creditors over 1 year Total net assets |
Unrestricted funds General £ 884,323 2,058,903 (152,875) (78,492) 2,711,859 |
Restricted funds £ - 60,255 - - 60,255 |
Total funds 2019 £ 884,323 2,119,158 (152,875) (78,492) |
|---|---|---|---|
| 2,772,114 |
17 Related party transactions
During the year the charity made the following related party transactions:
Trustees
The following balance owed to a trustee was outstanding at the year end; No interest is charged in respect of this balance and there are no fixed terms of repayment.
At the balance sheet date the amount due to Trustees was £119,140 (2019 - £132,340).
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