The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, presents their report and financial statements for the year ended 31 December 2024.
The trustees have adopted the provisions of "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 2019)".
Objectives and aims
The principal objectives of The Nepal Trust (NT) are to:
1. Relieve poverty among the residents of Nepal
2. Advance education among the residents of Nepal
3. Preserve and promote the traditional culture of Nepal
4. Protect and preserve, for the benefit of the general public, the natural environment of Nepal.
In pursuance of these objectives, The Nepal Trust provides:
(a) Educational facilities, equipment, training and teaching;
(b) Medical facilities, medicines, equipment, training and primary healthcare services;
(c) Facilities, equipment and training to improve agriculture;.
(d) Renewable energy facilities and equipment and on-going support services; and
(e) Facilities and equipment for water supply and sanitation.
In addition, it:
(f) Supports tourist initiatives in Nepal
(g) Can, in emergency situations, provide housing, shelter, nutritional advice, food and clothing
It is the charity's philosophy to work in collaboration with the local people and to avoid building a culture of dependency. Projects and programmes are developed in consultation with both donors and local communities based on the community's views and on their needs in terms of assistance and development. The decision on which projects to sanction and support is heavily conditioned by the levels of contribution and support that the local communities are willing to commit to themselves. The Nepal Trust emphasizes local participation and recognises the local people as the ultimate custodians of their homelands. The aim of the charity is to work in partnership with the people of Nepal on clearly-needed, attainable and sustainable projects.
The Nepal Trust receives income from individual friends and supporters, corporate donors, Rotary Clubs and other charitable trusts & organisations.
Activities in 2024 were inevitably further adversely affected by Covid 19 outbreak. This impacted both our fund-raising efforts and the execution of those programmes already funded.
Income in the year in Restricted Funds was £5,466 compared with £26,023 in 2023. Direct expenditure on programs & projects was £Nil (2023 - £43,731). After net transfers of £Nil to Unrestricted Funds, there was an inflow of £5,466 increasing the balance of Restricted Funds to £32,931 at the year end. These funds will be expended in 2025 and beyond on the projects for which they were raised.
Unrestricted Fund income in the year increased to £84,493 from £27,892 in 2023. Expenditure of £14,881 was a reduction of £44,481 from £59,362 in 2023, reflecting the measures taken to reduce costs in the face of falling revenues. After net transfers of £Nil, there was an increase of £69,612 in the balance of Unrestricted Funds to £85,896 at the year end.
As detailed previously in this report, the Trustees have reviewed the Trust's financial model to ensure The Nepal Trust has sufficient funds to meet its obligations and to ensure that the organisation has a viable future beyond that.
On 23rd December 2024, a collaboration project was entered into between The Nepal Trust and the Nepal Development Foundation, for a 36 month period to allow the progression of the Humla Health and Education Support Project in Nepal. A total sum of £125,000 has been committed to be raised and transferred for the purposes of the project as outlined in the contract, with the Nepal Development Foundation responsible for the coordination of all project activities in Nepal, finance management and legal issues as per laws of Nepal Government and SWC, alongside other project related tasks. The Trustees are confident the sums to be raised are achievable over the 36 month period on review of the current funds available at 31st December 2024 and expected future generated funds over the next 3 year period.
Governing document
The Nepal Trust is a company limited by guarantee, incorporated in Scotland on 10 October 2001 and is a registered Scottish charity. The Company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association.
Policy papers have been adopted in respect of matters such as exchange rate management and allocation of funds to recover project support costs from restricted funds.
The trustees may at any time appoint a nominated person to fill a vacancy or as an additional trustee. New trustees or directors are appointed from within the membership and their appointment is confirmed by a vote of the membership at an annual general meeting. It is the responsibility of the trustees to ensure that there is no reason for the person joining to be disqualified.
The number of trustees of the Nepal Trust is limited to twelve. Of this number a maximum of eight shall be Individual Trustees, a maximum of two shall be Organisational Trustees (trustees appointed by organisations, who are members of The Nepal Trust) and there shall be one Programme Director (Trustee), currently Jeroen van den Bergh, and one Administration Director (Trustee), position currently vacant.
The Board of Trustees holds MS Teams, Zoom, and conference-call meetings, and meets formally at least once a year to discuss the ongoing work of the Nepal Trust, to review the finances and to make any major decisions with respect to policy and strategy. It is responsible for approving the NT's forward field programme and associated budgetary commitments. The day to day running of administrative and financial matters is delegated to the Company Secretary, supported by the Board Members and the Programme Director.
Our deepest thanks go to Mike Love, our chair of many years, Tony Sharpe, our deputy Chair of many years and longest-serving trustee Rod Lowcock, our outgoing Finance Director, and Sally Wood-Rodgers a member of our medical-focused volunteer trustee cohorts. All of these trustees stepped down as board members and trustees last year, and have agreed to serve as "grandparents" of the NT.
New trustees before joining are provided with a copy of the Nepal Trust's governing document (Memorandum and Articles of Association) and information about the aims and objectives of the Nepal Trust as well as its current activities and projects. The role and responsibilities of new trustees and the level of their commitment is clearly identified and agreed to at the time of appointment. They are also provided with a copy of the OSCR guidance for charity trustees.
The Nepal Trust regularly works in collaboration with other organisations. This mostly takes the form of financial support or training programmes but can also involve The Nepal Trust acting as the 'local' delivery party for projects and/or programmes initiated by other charitable organisations. When engaging in collaborative activities, NT policy is that a formal collaboration agreement is drawn up between the organisations to regulate the working arrangements and to define the responsibilities and liabilities of the parties.
The Nepal Trust previously operated in Nepal as an International Non-Governmental Organisation (INGO) with the final 5 year Project Agreement between the Nepal Trust and the Social Welfare Committee ("SWC") ending in July 2023. For all project related activities in Nepal, the regulations required that the delivery of its programmes be run through local Non-Governmental Organisations (NGO). For the latest 3 year programme signed in December 2024, the Nepal Trust will partner with the Nepal Development Foundation ("NDF").
Risk management
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
The trustees report was approved by the Board of Trustees.
I report on the financial statements of the charity for the year ended 31 December 2024, which are set out on pages 5 to 15.
It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and to state whether particular matters have come to my attention.
My examination is carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations 2006. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the financial statements.
In the course of my examination, no matter has come to my attention
1. which gives me reasonable cause to believe that in any material respect the requirements:
to keep accounting records in accordance with Section 44(1)(a) of the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 4 of the Charities Accounts (Scotland) Regulations 2006, and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the Charities Accounts (Scotland) Regulations 2006
have not been met, or
2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
The notes on pages 7 to 15 form part of these financial statements.
The notes on pages 7 to 15 form part of these financial statements.
The Nepal Trust is a private company limited by guarantee incorporated in Scotland. The registered office is 23 Norman Macleod Crescent, Bearsden, Glasgow, G61 3BF.
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) "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 2019)", Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the entity. 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.
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 or grantors 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.
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributable to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Support costs are allocated to the charitable activities on the basis of time spent by staff or on the actual amount incurred by each charitable activity.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
At each reporting end date, the trusteescharity review the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
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.
The charity is exempt from corporation tax on its charitable activities.
Income in currencies other than pounds sterling is incorporated in these accounts at the actual rates realised on conversion to sterling. Expenditure in currencies other than pounds sterling is incorporated at the actual cost in sterling of purchasing the currency. Monetary assets held in foreign currencies at the year end are converted to sterling at the year end exchange rate, and any gains or losses thereon are dealt with in the Statement of Financial Activities.
During the year no trustees received reimbursement of out of pocket expenses (2023 - 2 trustees - £4,600).
Included above are £10,000 (2023 - £22,500) for salaries paid to one trustee based in Nepal. His salary was paid for his services as an employee, not for his services as a trustee.
The average monthly number of employees during the year was:
Included in the above are amounts totalling £10,000 (2023 - £22,500) of salary costs paid to non-UK residents based in Nepal.
Restricted Funds:
For each of the funds the balance at the year end represents the unspent amount which is expected to be used in future periods. The major movements in the year were:-
Restricted funds - Health projects:
The Nepal Trust carries out a number of health projects and receives funding specified for use in each project or area. During the year funds have been received specifically for or expended on the following projects:
The core health programme in Humla:
The day to day running of our health centres in Humla is undertaken on our behalf by a local operator, SHIP Nepal, in conjunction with the Nepali Government which has incorporated them into its community clinics programme. Funds raised in the year totalled £2,394 of which £Nil was expended. Funds in hand at the end of the year amounted to £8,414.
Little Doctors' health education programme:
No courses were held in the year. Donations received were £1,500, and the sum of £5,038 was in hand at the year end. The aim is to incorporate the Little Doctors programme into the wider Core Health programme in Humla under SHIP Nepal and undertake three courses each year. Additional funding of £962 is required to fund these in the year 2025.
Restricted Funds - Education projects:
Humla Schools Project
This project is for the refurbishment of sixteen schools in a poor state of repair. Stitching Nepal withdrew from this project and refunded £7,623 of unspent moneys contributed by The Nepal Trust. £1,572 was raised during the year, leaving £9,479 in hand at the year end.
Other Schools and Literacy programmes
£10,000 is held in hand to support future education programmes.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
Unrestricted General Fund:
This fund represents the free reserves of the charitable company arising from past operating results. Income of £84,493, expenditure of £14,881 and net transfers of £Nil from projects resulted in a surplus of £69,612 (2023 - £23,724) in the year and free funds of £85,896 carried forward into 2025.
On 23rd December 2024, a collaboration contract was entered into between The Nepal Trust and the Nepal Development Foundation, for a 36 month period to allow the progression of the Humla Health and Education Support Project in Nepal. A total sum of £125,000 has been committed to be raised and transferred for the purposes of the project as outlined in the contract, with the Nepal Development Foundation responsible for the coordination of all project activities in Nepal, finance management and legal issues as per laws of Nepal Government and SWC, alongside other project related tasks. The Trustees are confident the sums to be raised are achievable over the 36 month period on review of the current funds available at 31st December 2024 and expected future generated funds over the next 3 year period.
The mother of the trustee, Chris Rae, received £1,650 (2023 - £2,325) for services provided to the charity.