The trustees present their annual report and financial statements for the year ended 31 December 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2019)
The charity's objects are the advancement of education, the prevention and relief of poverty, and the relief of need amongst those who have need by reason of their age, disability or other disadvantage, in particular for the charitable benefit of children and young people in Nepal.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Public benefit of our work
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Activities in the period to 31 December 2024
Grace Home orphanage suffered in the devastating earthquake of 2015, since when they have moved from place to place, which is unsettling for the children. Our assistance has helped provide stability and peace of mind in a new loving home that satisfies all their basic needs. It includes a separate room for study, which is essential for their education and future, and has space to enable several more children in need to be given a home.
Future plans
In the future, the trustees are hoping to be able to continue to pay for basic day to day expenses for the home.
The total income for the period was £10,829. This money was raised from commitments from individuals via a website which encouraged both single and monthly donations. Other donations came from various fundraising activities, including coffee mornings, walks and where applicable from gift aid
Grants of £13,744 were made to Grace Home orphanage, Kathmandu, Nepal to assist with the purchase of insulation to stop the condensation in the roof, and day to day expenses, clothes, school fees and staff salaries.
After grants and necessary expenditure, general reserves amounted to £11,864.
Reserves policy
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The charity was registered with the Charity Commission in England and Wales on 19 December 2016.
The charity was incorporated on and commenced its activities on 1 December 2016.
The charity is constituted as a private company limited by guarantee, registered in England and governed by the Trustees, who are also directors of the company.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The day to day administration of the business is carried out by Mrs E.M. Adams, trustee and company secretary.
Communication with directors/trustees is by email and regular meetings.
Decisions on grants are made collectively by the directors/trustees, who willingly give up their time free of any charge.
The trustees' report was approved by the Board of Trustees.
In accordance with our terms of engagement, we have reviewed the financial statements of Grace Home Nepal for the year ended 31 December 2024 set out on pages 4 to 9 from the charity’s accounting records and from information and explanations you have given us.
This report is made to the charity's trustees, as a body, in accordance with the terms of our engagement letter dated 6 July 2023. Our work has been undertaken solely to prepare for your approval the financial statements of Grace Home Nepal and state those matters that we have agreed to state to the charity's trustees, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Grace Home Nepal and the charity's trustees as a body, for our work or for this report.
It is your duty to ensure that Grace Home Nepal has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and deficit of Grace Home Nepal. You consider that Grace Home Nepal is exempt from the statutory audit requirement for the year, and is not required to obtain an independent examiner's report.
We have not been instructed to carry out an audit or a review of the financial statements of Grace Home Nepal. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Grace Home Nepal is a private company limited by guarantee incorporated in England and Wales. The registered office is The Forge, 12 Tilsdown, Dursley, Gloucestershire, GL11 5QL, United Kingdom.
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Expenses are included in the financial statements as they become due.
Expenses include VAT where applicable as the company cannot reclaim it.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
Office costs
Travel costs
Accountancy
None of the trustees (or any persons connected with them) received any remuneration or benefits during the year (2023: None).
During the year a total of £1,949 (2023: £3,084) was paid to third parties in respect of travel expenses for 2 Trustees.
The average monthly number of employees during the year was:
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
Donations totalling £2,080 were made by the trustees to the charity during the year (2023: £7,200).