Charity registration number: 289194
Khaniqah-I-Nimatullahi
Annual Report and Financial Statements for the Year Ended 31 December 2022
Khaniqah-I-Nimatullahi
Contents (continued)
| 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 16 |
Khaniqah-I-Nimatullahi
Reference and Administrative Details
Trustees Dr A Nurbakhsh Mrs Y Zellipour Mr Seyed Javad Zokai Mr H Nourbakhsh Charity Registration Number 289194 Principal Office 41 Chepstow Place London W2 4TS Independent Examiner Jonathan Russell F.C.A. Just Audit & Assurance Ltd 4 South Bar Street Banbury Oxfordshire OX16 9AA Bankers Lloyds Bank PLC 12 High Street Banbury Oxfordshire OX16 5EF
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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 2022.
Objectives and activities
Objects and aims
The principal objectives of the charity are to promote the spiritual teaching of Sufism, including the establishment of ' Khaniqahs' (Sufi houses) to provide the means to communicate the principles and teachings of Sufism. The charity also provides charitable relief and well-being to those members of the public experiencing hardship in their lives.
Public benefit
The Charity's establishment and learning methods are open to all who wish to study the principles and teaching of Sufism.
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Khaniqah-I-Nimatullahi
Trustees' Report (continued)
Secretary's Summary Report
As the Covid pandemic continues for another year, the Trust has tried to maintain contact with its members coordinated both internationally and through each centre worldwide, namely:
1 - Online meditation speech and music continue to be broadcasted and shared amongst all centres twice weekly
2 - Both biannual magazines, in Persian and English, continue to be published in a digital format online. The Persian magazine is offered free of charge, while the English magazine is offered under subscription.
3 - New initiatives are made in having more presence online in social media (Facebook, Instagram …) as well as constant review of the main web site for the organisation and that of the Sufi magazine. Sufi Music, Poetry readings and Podcasts are also added to the Sufi magazine web site. All these attempts have been made to try and reach more people using the platforms that the majority of people are currently engaged in.
4 - The Safeguarding policy and guidelines have been agreed and distributed to all centres across the globe and should now be part of their operational routine.
Revised guidelines are issued to all centres with measures on how to hold meetings as they move in and out of isolation. Once again most centres have opted to remain close and only a few centres have opened their doors to their members.
Like many organisations, the charity remains to be impacted by the Covid-19 pandemic. It was therefore decided not to hold the June 2022 annual event and visits to all centres remain restricted. However, the charity is continuing to receive donations and it is not expected that the pandemic will have any long term effect on the charities finances.
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. Some other centres have been unable to make any payments this year due to operational costs and lack of consistent contributions to cover these costs as well as their loan repayments. These later centres include: Paris, Abidjan, Burkina Fasso and Geneva. Current indications show that most of these centres would be in a position to make some repayments before the end of December 2022.
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Khaniqah-I-Nimatullahi
Trustees' Report (continued)
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 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 Zokai assists in the household management of the London centre and the coordination of the voluntary work in the community initiatives by the London members.
Neil and Sima Johnston have indicated that they wish to retire before the end of December 2022. Discussions would be put in place to delegate their current duties to other members within the organisation.
Financial review
Policy on reserves
The Trustees consider that they have adequate reserves to maintain the operation of the Charity for the forseeable future.
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 13 September 2023 and signed on its behalf by:
......................................... Dr A Nurbakhsh Trustee
......................................... Mr Seyed Javad Zokai 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:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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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 Charities (Accounts and Reports) Regulations 2008, 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.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Approved by the trustees of the charity on 13 September 2023 and signed on its behalf by:
......................................... Dr A Nurbakhsh Trustee
......................................... Mr Seyed Javad Zokai 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 Khaniqah-I-Nimatullahi for the year ended 31 December 2022.
Responsibilities and basis of report
As the charity trustees of Khaniqah-I-Nimatullahi you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Khaniqah-I-Nimatullahi'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
Since Khaniqah-I-Nimatullahi's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of , which is one of the listed bodies.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of Khaniqah-I-Nimatullahi as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting 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
18 September 2023
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Khaniqah-I-Nimatullahi
Statement of Financial Activities for the Year Ended 31 December 2022
| 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 14 2021 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 14 |
Unrestricted £ 59,106 139,015 63,400 69,726 331,247 (229,363) (229,363) 101,884 2,481,649 2,583,533 Unrestricted £ 35,865 12,038 63,094 (52,804) 58,193 (173,557) (173,557) (115,364) 2,597,013 2,481,649 |
Restricted £ 154,678 - - - 154,678 (1,199) (1,199) 153,479 57,801 211,280 Restricted £ 9,262 - - - 9,262 (63) (63) 9,199 48,602 57,801 |
Total 2022 £ 213,784 139,015 63,400 69,726 |
|---|---|---|---|
| 485,925 | |||
| (230,562) | |||
| (230,562) | |||
| 255,363 2,539,450 |
|||
| 2,794,813 | |||
| Total 2021 £ 45,127 12,038 63,094 (52,804) |
|||
| 67,455 | |||
| (173,620) | |||
| (173,620) | |||
| (106,165) 2,645,615 |
|||
| 2,539,450 |
The notes on pages 9 to 16 form an integral part of these financial statements. Page 7
Khaniqah-I-Nimatullahi
(Registration number: 289194) Balance Sheet as at 31 December 2022
| 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 Net assets Funds of the charity: Restricted income funds Restricted funds 14 Unrestricted income funds Unrestricted funds Total funds 14 |
2022 £ 798,201 1,592,207 537,714 2,129,921 (133,310) 1,996,611 2,794,812 211,280 2,583,532 2,794,812 |
2021 £ 824,536 1,641,499 188,710 |
|---|---|---|
| 1,830,209 (115,295) |
||
| 1,714,914 | ||
| 2,539,450 | ||
| 57,801 2,481,649 |
||
| 2,539,450 |
The financial statements on pages 7 to 16 were approved by the trustees, and authorised for issue on 13 September 2023 and signed on their behalf by:
.........................................
Dr A Nurbakhsh Trustee
......................................... Mr Seyed Javad Zokai Trustee
The notes on pages 9 to 16 form an integral part of these financial statements. Page 8
Khaniqah-I-Nimatullahi
Notes to the Financial Statements for the Year Ended 31 December 2022
1 Accounting policies
Statement of compliance
The financial statements have been prepared in accordance with the second edition of the Charities Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom 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. The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.
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.
Grants receivable
Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.
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 2022 (continued)
Government grants
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.
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
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 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.
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Khaniqah-I-Nimatullahi
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
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.
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 Grants, including capital grants; Government grants |
Unrestricted funds General £ 59,106 - 59,106 |
Restricted funds £ 633 154,045 154,678 |
Total 2022 £ 59,739 154,045 213,784 |
Total 2021 £ 45,127 - |
|---|---|---|---|---|
| 45,127 |
3 Income from other trading activities
| Trading income; Publication sales Orchard sales Membership subscriptions |
Unrestricted General £ 1,633 13,582 123,800 139,015 |
Total 2022 £ 1,633 13,582 123,800 139,015 |
Total 2021 £ 583 11,455 - |
|---|---|---|---|
| 12,038 |
4 Investment income
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Khaniqah-I-Nimatullahi
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
| 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 £ 1 4,649 58,750 63,400 Note |
Total 2022 £ 1 4,649 58,750 63,400 2022 £ 69,726 |
Total 2021 £ 1 5,833 57,260 |
|---|---|---|---|
| 63,094 | |||
| 2021 £ (52,804) |
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Khaniqah-I-Nimatullahi
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
Other gains & losses arises from currency gains and losses on loans to overseas charities in non sterling currencies.
6 Expenditure on charitable activities
Unrestricted
| Unrestricted | ||||
|---|---|---|---|---|
| Costs of publications Depreciation Premises costs Other costs Wages and salaries Governance costs |
General £ 307 40,223 53,183 55,633 65,204 14,813 229,363 |
Restricted £ - - - 1,199 - - 1,199 |
Total 2022 £ 307 40,223 53,183 56,832 65,204 14,813 230,562 |
Total 2021 £ 561 42,133 21,539 28,316 70,995 10,076 |
| 173,620 |
7 Analysis of governance and support costs
Governance costs
Unrestricted
| Accountancy and independent examiners fee Other office expenses 8 Net incoming/outgoing resources Net incoming/(outgoing) resources for the year include: Depreciation of tangible fixed assets |
General £ 5,762 9,051 14,813 |
Total 2022 £ 5,762 9,051 14,813 2022 £ 36,424 |
Total 2021 £ 5,562 4,514 |
|---|---|---|---|
| 10,076 | |||
| 2021 £ 42,133 |
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 2022 (continued)
10 Taxation
The charity is a registered charity and is therefore exempt from taxation.
11 Tangible fixed assets
| Cost At 1 January 2022 Additions At 31 December 2022 Depreciation At 1 January 2022 Charge for the year At 31 December 2022 Net book value At 31 December 2022 At 31 December 2021 12 Debtors Trade debtors Due from sister charities |
Land and buildings £ 1,460,736 13,443 1,474,179 647,021 38,440 685,461 788,718 813,715 |
Furniture and equipment £ 87,065 445 87,510 77,172 1,551 78,723 8,787 9,893 |
Furniture and equipment £ 87,065 445 87,510 77,172 1,551 78,723 8,787 9,893 |
Motor vehicles £ 2,200 - 2,200 1,272 232 1,504 696 928 2022 £ 3,389 1,588,818 1,592,207 |
Motor vehicles £ 2,200 - 2,200 1,272 232 1,504 696 928 2022 £ 3,389 1,588,818 1,592,207 |
Total £ 1,550,001 13,888 1,563,889 725,465 40,223 765,688 798,201 824,536 2021 £ - 1,641,499 |
|---|---|---|---|---|---|---|
| 87,510 | 2,200 | |||||
| 77,172 1,551 |
1,272 232 |
|||||
| 78,723 | 1,504 | |||||
| 8,787 | 696 | |||||
| 9,893 | 928 | |||||
| 2022 £ 3,389 1,588,818 1,592,207 |
||||||
| 1,641,499 |
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 2022 (continued)
13 Creditors: amounts falling due within one year
| Other loans Accruals 14 Funds Unrestricted funds General General Restricted funds Serving the Needy Abidjan Clinic Retreat cottages Total restricted funds Total funds |
Balance at 1 January 2022 £ 2,481,650 50 57,751 - 57,801 2,539,451 |
Incoming resources £ 331,247 - 633 154,045 154,678 485,925 |
2022 £ 92,741 40,569 133,310 Resources expended £ (229,364) - (301) (898) (1,199) (230,563) |
2021 £ 105,941 9,354 |
|---|---|---|---|---|
| 115,295 | ||||
| Balance at 31 December 2022 £ 2,583,533 50 58,083 153,147 |
||||
| 211,280 | ||||
| 2,794,813 |
15 Analysis of net assets between funds
| Tangible fixed assets Current assets Current liabilities Total net assets Tangible fixed assets Current assets Current liabilities Total net assets |
Unrestricted funds General £ 798,201 1,920,079 (133,312) 2,584,968 Unrestricted funds General £ 824,536 1,785,714 (115,295) 2,494,955 |
Restricted funds £ - 211,280 - 211,280 Restricted funds £ - 44,495 - 44,495 |
Total funds at 31 December 2022 £ 798,201 2,131,359 (133,312) |
|---|---|---|---|
| 2,796,248 | |||
| Total funds at 31 December 2021 £ 824,536 1,830,209 (115,295) |
|||
| 2,539,450 |
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Khaniqah-I-Nimatullahi
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
16 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 £92,741 (2021 - £105,940).
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