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
Page 1
## **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.
Page 2
## **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.
Page 3
## **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
Page 4
## **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
Page 5
## **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:.............................
Page 6
## **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|
Page 7
## **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
Page 8
## **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.
Page 9
## **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.
Page 10
## **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|
Page 11
## **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.
Page 12
## **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.
Page 13
## **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|
Page 14
## **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).
Page 15