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← International Nepal Fellowship

2024-06-30-accounts

INTERNATIONAL NEPAL FELLOWSHIP

Annual Report and Audited Accounts Year ending 30 June 2024

International Nepal Fellowship is a registered charity (no. 1047178) We are a company limited by guarantee (no. 3060972), registered office at 196-198 Edward Road, Balsall Heath, Birmingham, B12 9LX

www.inf.org.uk

T: 0121 472 2425

E: enquiries@inf.org.uk

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International Nepal Fellowship - Annual Report and Audited Accounts (year ending 30 June 2024)

Contents

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International Nepal Fellowship - Annual Report and Audited Accounts (year ending 30 June 2024)

Chief Executive’s Summary

Background to 2023-24

When the world emerged from the Covid-19 pandemic there was speculation about what the ‘new normal’ would look like, accompanied by hope-filled comments of ‘building back better’.

During 2023-24 speculation has given way to clarity that is summed in a single word: ‘polycrisis’, defined as a combination of environmental, geopolitical, and economic crises.

Hope has been replaced by despair, the protracted conflict between the Ukraine and Russia has led to a significant leap in food insecurity for the world’s poorest. The attack on Israel, and Israel’s subsequent response, has brought conflict and instability to the wider region. Both conflicts have sucked up government funding and political energy that might otherwise have gone to reducing global poverty and providing hope for millions of people worldwide.

The world’s climate continues to heat up unabated, leading to changing weather patterns and weatherrelated natural disasters such as floods, which have increased in significance and severity in Nepal.

Slow growth in major European economies, coupled with a rise in right-wing populism in some countries, has resulted in major cuts from traditionally reliable donor countries.

The UK’s foreign aid commitment suffered further cuts, from £15.3bn in 2023 to £14.3bn in 2024-25. These headline figures mask an even larger, real terms cut as spending on refugees in the UK is projected to suck up 28% of this reduced figure.

Germany, the world’s second largest donor country after the USA, has cut its foreign aid budget by over €3.6 billion. INF UK co-partners a German INGO accessing substantial funding for INF in Nepal. These cuts will almost certainly impact future funding.

Other usually reliable countries supporting development in Nepal, such as the Netherlands, Sweden and Norway, are also reducing their international aid budgets, Norway to a 46-year low.

The EU, the largest international aid donor in the world, is slashing its aid budget and increasingly focussing its funding on countries in which it has a strategic interest.

Ahead will be the impact of Donald Trump becoming the 47th president of the USA. There are nascent plans to withdraw immediately from the WHO and refocus USAID priorities. On the positive side, this may benefit INF if the predicted increase in funding for Christian faith-based groups happens.

We have been broadening our fundraising efforts beyond the UK, with applications to a range of international foundations and institutional donors, however securing funding to support our partners’ projects has been extremely challenging this year. More positively, giving by individual donors and churches has been strong and is holding up well. We are very grateful for all our supporters who continue to support the journey of Nepal’s development. There are signs of this bearing fruit as Nepal is set to graduate from a Least Developed Country (LDC) to a Lower-Middle Income Country (LMIC) in 2026, however that change could also result in Nepal being de-prioritised by some funders over the coming years.

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International Nepal Fellowship - Annual Report and Audited Accounts (year ending 30 June 2024)

INF UK is experiencing the above polycrisis and the ever-increasing competition for aid funding that remains. Despite these challenges, our partners have achieved much for the most disadvantaged Nepalis as you can read in this report.

Locally led development and localisation

‘Locally led’ or ‘localisation’ is the shifting of power within the aid system from international donors, implementers, and aid agencies to local actors and communities, and is a key step towards a more equitable world.

Locally led development is not new and has been part of the international development conversation for many years but until very recently it has not received the prominence it deserves.

What does this mean for INF UK? In November 2024 about half of the INF UK board visited Nepal to celebrate INF’s 72 years of serving Nepal and its people. We were reminded by our Nepali colleagues of those early days when a small number of white missionaries trekked into Nepal to start a clinic in Pokhara. The small medical work that started in 1952 has grown into three hospitals and many community-based projects, serving tens of thousands of people annually.

A sense of pride in being the longest serving INGO in Nepal is understandable, but we were struck how our current story risks being overshadowed by our history. The reality is, we are not the organisation we were twenty years ago. In 2005 the Nepal based organisation passed from western leadership into the hands of its Nepali leaders, both at Director and board levels. Strategies, programmes and projects have been locally led for two decades. This is a history to be proud of, this is a story we should shout about!

At their heart the terms ‘community-led’, ‘locally led’, ‘localisation’ and ‘decolonisation’ have meanings that continue to shape and direct how we work with partners.

A key pillar of localisation is having a deep, context-specific understanding of the relationships between people, processes and institutions within a country. Our relationships with partners over many decades have helped create INF UK’s unique, context specific understandings in Nepal.

Leadership changes in 2024-25

2025 will mark an important change for me personally as I shall retire from 27 years of leading INF UK, handing onto a new CEO in early 2025. It has been an immense privilege to have served for such a long period of time, making deep and lasting friendships, and overseeing several important strategic changes during my tenure. INF UK is again at a point of inflection, not just because of the challenges outlined above, but also because of the opportunities that these will inevitably bring. I look forward to supporting my successor when appointed.

As well as a change of CEO, INF UK has also had a change in Chair of our Board. In October 2024, Mike Thomas retired after serving for 10 years and has been replaced by Dr Ian Smith, formerly Chief of Staff of the Director General’s Office of the WHO. Ian is supported by an incredible group of trustees, full of experience and talent.

John Reynolds

Chief Executive Officer, INF UK

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International Nepal Fellowship - Annual Report and Audited Accounts (year ending 30 June 2024)

The trustees present their report along with the audited financial statements of the charity for the year ended 30 June 2024.

Reference and administrative information set out on page 17 forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice – Accounting and Reporting by Charities (effective from January 2019).

About INF UK

The International Nepal Fellowship (INF) is Nepal’s longest serving international NGO with nearly seven decades of experience working with Nepal’s poorest and most disadvantaged people and communities.

Today, INF in the UK is a forward-thinking and impactful organisation, fulfilling its charitable objectives and demonstrating public benefit by supporting programmes and projects delivered by our Nepali partners addressing key needs in healthcare, disability, community resilience, education, and emergency relief.

OUR VISION

Life in all its fullness for Nepal’s poor and disadvantaged people and communities.

OUR MISSION

Supporting local Nepali communities and healthcare services, to improve health, reduce poverty, and promote social inclusion.

OUR VALUES

OUR ETHOS

We are motivated by our Christian faith, showing active compassion for some of the world’s poorest, and encouraging individuals and communities to access and enjoy their rights is a holistic expression of our values.

We believe all people are equal, and so inclusion and dignity are very important to us, irrespective of gender, sexual orientation, religious belief, disability, economic status, caste, or any other feature.

DEMONSTRATING PUBLIC BENEFIT

When deciding its priorities, trustees consider how these will further the charity’s purposes for the public benefit. Trustees take account of The Charity Commission’s general guidance on public benefit, its supplemental advice on the advancement of religion for public benefit, and its supplemental advice on prevention and relief of poverty for the public benefit.

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International Nepal Fellowship - Annual Report and Audited Accounts (year ending 30 June 2024)

INF/UK’s CEO and Programmes Manager visited several partners and projects during the year and also met with board members and the senior leadership team of INF Nepal, its primary partner. Numerous video-conferencing meetings were also held between INF/UK senior staff and our Nepali partners to supplement project reporting and other regular communications.

Partners in Nepal

We work through a small number of like-minded partners who share our vision and values. During the past year, these local NGOs in Nepal were:

INF Nepal (INF/N): As a member of the international INF family, our primary delivery partner is INF Nepal, a locally registered NGO based in Pokhara. Through this relationship we have supported INF’s three hospitals in Pokhara, Surkhet and Banke, as well as major development projects serving remote communities in western districts which include helping disadvantaged people become more resilient to major threats to their livelihoods such as climate change and natural disasters.

Asal Chhimekee Nepal (ACN): The social action arm of the Pokhara Christian Community (PCC), a grouping of 60-plus churches based in the Pokhara area, ACN’s name translates as ‘Good Neighbour Nepal’. ACN has valuable expertise in helping communities respond to natural disasters, working in conjunction with municipal authorities, and will often also mobilise networks of local churches to support disaster relief activities. We have also supported aspects of ACN’s community development work serving marginalised people.

Group of Helping Hands (SAHAS) Nepal: A Kathmandu-based NGO with experience of helping rural communities develop in the poorest parts of Nepal, our partnership with SAHAS includes a project in an eastern district of the Terai which is not covered by our other partners.

United Mission to Nepal (UMN): Another long-standing and highly respected Christian development organisation, UMN has also been serving in Nepal since the 1950s. An update on the pilot year of an education project delivered in partnership with INF UK is included below.

Sarwangin Sewa Samaj (SSS): A volunteer-led organisation in Nepalgunj, supporting very poor patients and their carers at the Bheri Zonal Hospital with essential needs that would otherwise not be met.

Impact in 2023-24

Healthcare

Green Pastures Hospital, Pokhara

Towards Zero Leprosy (INF Nepal)

Green Pastures Hospital provides comprehensive care, including diagnosis, treatment, and rehabilitation for individuals affected by leprosy in western Nepal. The hospital also serves as a center for study on leprosy, contributing valuable insights to the global effort to combat the disease.

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International Nepal Fellowship - Annual Report and Audited Accounts (year ending 30 June 2024)

This year there were 312 people affected by leprosy admitted for impatient care at Green Pastures, while 2,142 people received outpatient care. 89 new leprosy cases were diagnosed. For more severe cases, 38 people had reconstructive surgery and there were 72 other types of surgery performed for amputations, nerve decompressions and septic issues.

The number of physiotherapy, occupational therapy and speech therapy sessions provided was 7,921. A total of 541 items of footwear and other assistive devices were provided.

Greenhouse, Courtyard and Safe Farming Area (INF Nepal)

A new facility to support the rehabilitation of leprosy patients opened in February 2024 at Green Pastures Hospital. Adjoining the Eileen and Betty Centre (leprosy ward), this outdoor area includes a wheelchair-friendly courtyard, a green house, and a safe farming field. It not only supports their holistic rehabilitation but also gives them skills to use when back at home.

This area is used to grow a range of vegetables, herbs and flowers, and the greenhouse includes a table for training patients about planting and growing. A Safe Farming Trainer helps patients develop their agricultural skills, including how to use adapted tools and avoid injury if they have leprosy-related numbness or other issues caused by complications from leprosy.

Waste Management (INF Nepal)

A new waste management facility was created on the Green Pastures Hospital site. Six colour-coded sections (general waste, bio hazardous waste, infectious waste, pharmaceutical waste, pathological waste, and sharps waste) are included and a leaflet was produced to guide staff in improved waste management, reducing the risks to patients, staff, local community and the environment.

INF UK also supported hospital services for Children with Developmental Disorders . This project ended in September 2023, the details of which are covered in last year’s Annual Report.

Surkhet

Shining Hospital, Surkhet (INF Nepal)

• Medical Charity Fund

Shining Hospital Surkhet is a rehabilitation centre for people living in Karnali province in western Nepal. The Medical Charity Fund is available for patients who are unable to afford the cost of any type of treatment at the hospital, with a socio-economic assessment available.

Between October 2023 and July 2024, 44 people benefitted from the support of this fund for treatment related to medial conditions such as strokes, spinal cord injuries and cancer.

• Haematology analyser

A new haematology analyser was procured for Shining Hospital in 2023, reducing the tests that need to be outsourced to external laboratories – including complete blood count tests which are carried out about 10 times per day. This reduces both the costs for patients and the wait for test results, supporting the work of the hospital’s dermatologist and laboratory staff.

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International Nepal Fellowship - Annual Report and Audited Accounts (year ending 30 June 2024)

Fistula Centre, Surkhet (INF Nepal)

INF UK continues to support the work of Dr Shirley Heywood, a gynaecological surgeon from the UK who leads the team at the Fistula Centre which opened in 2019.

Banke

Sarwangin Sewa Samaj, Banke (SSS)

SSS provides patient support, advocacy, counselling and fellowship for the most poverty-affected people needing medical treatment at Bheri Zonal Hospital. It also runs a nearby hostel providing accommodation and food for the patients and their caregivers.

This year about 17 people per week received food and about 7 people per week stayed at the hostel. Pastoral care and counselling was provided for about 5 to 7 patients per week.

Community Health

Community Medical Outreach, various districts (INF Nepal)

This three-year project is ensuring that remote communities have access to specialist doctors through a ‘camps approach’ and is promoting disaster prevention by strengthening local self- help potential and providing additional external help (in the event of a disaster).

Delivered by INF Nepal, the latest project year included seven disability screening camps, two of which specialised in skin and leprosy-related issues, reaching more than 3,500 people living in remote communities across various districts.

Access and Inclusion, Surkhet (INF Nepal)

INF Nepal’s work in Surkhet district is not limited to the work of Shining Hospital. This project helps people with disabilities to be able to contribute economically to their families and communities and lead fulfilling lives in the long term.

The second 12 months of this four-year project delivered by INF Nepal impacted 614 people through medical health services, group psycho-social counselling, and support services, as well as assistive devices and the repair and maintenance of mobility aids.

Leprosy Free Communities, Banke (INF Nepal)

With an aim of reducing leprosy cases and improving the health and quality of life for those affected in Banke district, this project drew to a close in June 2024. It also helped reduce the stigma around leprosy, as during this three-year project outreach activities reached 10 schools and 872 students and teachers.

Two screening camps in May and June 2024 identified 4 newly diagnosed cases of leprosy, from almost 350 people in Banke and Bardiya districts.

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International Nepal Fellowship - Annual Report and Audited Accounts (year ending 30 June 2024)

Resilient Communities

Inclusive Development, Empowerment and Livelihood (IDEAL), Bajura (INF Nepal)

The past year of this project started while communities were recovering from the impact of earthquakes in May 2023, with many households further affected by floods and landslides during monsoon season.

While supporting people to recover from these incidents, the project continued to make a meaningful impact in people’s lives: 267 self-help group members are using revolving funds to help start or improve income generating activities; 70 people can now earn money through rearing livestock, grocery shops, and knitting businesses; 107 farmers are generating new income through more sustainable farming practices.

Building Resilience through Empowerment on Adaptability against Disaster Risks and Climate Change (BREAD), Kalikot (INF Nepal)

This new project continues INF Nepal’s commitment to people living in the remote western district of Kalikot. It has a focus on improving people’s livelihoods by strengthening their resilience and capacity to adapt to climate change and disaster risks.

During the first year, 45 self-help groups were established including people from 1,123 households. They have already developed and implemented 49 action plans, including construction of a wall in a disasterprone area, water scheme maintenance, improvement of pathways, plantation, and environmental sanitation.

Climate Change Adaptation for Sustainable Livelihoods, Bajura (INF Nepal)

Designed to improve living and income conditions for farmers in Bajura district, as well as strengthening resilience to natural disasters, this 3-year project came to a close in April 2024.

During the final year, 587 more people were supported in new activities or trades to improve income, and 225 people developed more effective and sustainable farming practices.

Another key project achievement was the installation of improved cooking stoves. These more efficient, metallic ovens have many benefits, including reduced firewood consumption and less smoke inside homes to reduce eye irritation and respiratory issues. One beneficiary reported the time saved cooking and cleaning was about an hour and a half each day, which could instead be spent farming or tending the kitchen garden.

Asha: Adolescent-led Resilient Livelihoods, Siraha (SAHAS Nepal)

This year we passed the mid-point of this three-year project empowering 191 teenage girls from marginalised low-caste families to become change-makers and improve living standards for them and their families.

All 191 girls have prepared Family Development Plans and 113 of them have established microenterprises according to their interests and market research. Also, 265 farmers have received training relating to organic farming, post-harvest management, and vegetable cultivation practices. A total of 40 farmers are accessing water for farming using the installed solar water irrigation system.

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International Nepal Fellowship - Annual Report and Audited Accounts (year ending 30 June 2024)

INF UK also supported a Youth ‐ focused Integrated Vocational Skills Training and Empowerment project, which ended at the end of July 2023. This one ‐ year project delivered by ACN helped young people from communities in Kaski, Nawalparasi and Parbat districts to become economically active and improve family income. The impact of this project is covered in last year’s Annual Report.

Education

Inclusive and Quality Education for Girls, Bajura (SAHAS Nepal)

This project led to a significant rise in children from marginalised families completing a good quality education at 12 schools in rural Bajura, which gives them greater opportunities for the future. A preproject baseline survey showed a 50% pass rate, which has increased to 92% of students from marginalised families passing their exams.

There were also positive outcomes in increased school enrolment and reduced dropout or absence rates, especially for girls. The project established 36 School Management Committees, Parent Teacher Associations, and Children’s Clubs, which have ongoing responsibility for governance, monitoring school activities and performance, and preparing action plans for improving these 12 schools.

School Education Enhancement, East Rukum (UMN)

The pilot year for this project has begun to equip 20 teachers working in remote school in East Rukum district, Eight child clubs and five youth clubs have been established to focus on topics including creating a supportive learning environment at home, ensuring regular school attendance, preventing child marriage, and promoting personal hygiene. As a result, the regular school attendance of children (up to grade 3) has increased by 50%.

Emergency Relief

Monsoon 2023 response, various districts (ACN and INF Nepal)

INF UK supporters made a significant contribution to ACN’s response to support people affected by floods and landslides in the districts of Mustang, Dhading, Bardiya, Kailali, Panchthar, Dolakha, Myagdi, Gorkha and Nawalparasi. A total of 717 households were supported with a mixture of food and household emergency supplies, materials for temporary shelters, and blankets to keep them warm in winter.

INF Nepal provided construction materials for 12 homes that were destroyed by a landslide in Bajura district.

Fire response, Mugu (INF Nepal)

A fire that destroyed 26 homes, shops and businesses in September 2023 also caused wider damage affecting other properties and land. INF Nepal’s district office in Mugu supported 122 affected people

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International Nepal Fellowship - Annual Report and Audited Accounts (year ending 30 June 2024)

with clothes, blankets and bedding as part of the local authorities’ response to help people before the onset of winter.

Capital projects

Community Service Centre, Pokhara (PCC and ACN)

We remain committed to the plans of ACN and the Pokhara Christian Community to build a new Community Service Centre, which has continued to progress through the design and planning phases. This did not involve any INF UK financial commitment or expenditure this year, we are holding substantial designated funds in our accounts ahead of construction during the years ahead.

Safeguarding

INF UK believes that all people have a right to feel safe and valued, and to live their lives free from coercion, modern slavery, sexual violence, harassment, and abuse. We seek to proactively encourage a culture where issues and concerns about safeguarding are raised and discussed, and where we provide a safe environment for all people that the organisation engages with.

The INF UK Board of Trustees is responsible for holding INF UK accountable for compliance with UK safeguarding law and best practice and ensuring that our partners are also following safeguarding policy and practice. The Board understands its legal duty to be accountable and responsible for Safeguarding for all persons who represent, support or benefit from the operations of INF UK. The Board appoints one of its members as a “Safeguarding Lead Trustee”, for a term of three years. The current Safeguarding Lead Trustee is Rosie Hart.

Safeguarding is a fixed agenda item for all Board meetings and any concerns or issues are discussed by the CEO and the Safeguarding Lead Trustee as and when they arise and actioned as appropriate. During the 2023-24 year there were no safeguarding concerns raised.

Financial Activities of the Charity

Summary

During 2023-24, total incoming resources were £731,400 (2023: £798,167). Most of the charity’s funds are sourced from private individuals, trusts and churches.

Total expenditure was £846,403 (2023: £939,600).

While expenditure during the year was higher than income, funds were drawn from the Programmes Fund in line with planned expenditure.

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International Nepal Fellowship - Annual Report and Audited Accounts (year ending 30 June 2024)

Funds

(a) General Fund

Total income on the General Fund was £417,914 (2023: £399,647). This was mainly made up of general donations, legacy income, and investment income.

(b) Gifts for Partners’ Programmes and Projects

This is income for the work amongst Nepalis. Income was £281,690 (2023: £372,638).

While personal giving has held up well during the year, in line with many other charities, 2023-24 has been a very challenging year for fundraising from Trusts and Foundations and income was significantly lower than budgeted. It is anticipated that these challenges will continue in 2024-25.

(c) Volunteer Workers Support fund (VWSF)

Historically, Mission Workers were recruited by INF/UK to serve in Nepal to build local capacity (e.g. doctors, managers, teachers, and such like). A strategic decision was taken six years ago to withdraw from seconding professionals to build local capacity, and no new secondments have been made since then. The charity continues to support one surgeon still working in Nepal and will continue to do so for the foreseeable future.

During the current financial year, VWSF income was £31,796 (2023: £25,882). This is entirely consistent with expectations following the charity’s strategic decision in 2018. The VWSF balance as at the year-end was £6,620.

Reserves

(a) Unrestricted reserves

The trustees have designated some of the charity’s General Reserves towards its growth plans. This designated fund will cover anticipated shortfalls on its General Fund over the coming 2-3 years. The Investment in Growth Fund currently stands at £75,496.

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International Nepal Fellowship - Annual Report and Audited Accounts (year ending 30 June 2024)

The total of unrestricted funds held as at 30 June 2024 is as follows:

Unallocated General Funds £208,781 Designated: Future Growth £ 75,496 Designated: Programmes £265,979 Designated: Operating Reserve £240,000 TOTAL UNRESTRICTED FUNDS £790,256

(b) Restricted reserves

These are funds held on behalf of a project, or for a restricted purpose.

The charity raises funds to support its partners’ programmes and projects, primarily from individuals, trusts and foundations. These funds are managed and paid to partners under Memorandums of Understanding (MoUs) signed between the charity and its partners. An MoU will reference the plans and budgets upon which an agreement has been made, and it will also contain a reporting and payment schedule. Payments are normally paid against a report from a partner detailing the work completed against its plans and money spent against the previously submitted budget. MoUs normally cover a period of 12-36 months. Funds received by the charity for a partner’s project, but not yet guaranteed for payment, are held as restricted funds in the charity’s accounts until firm commitments are made.

The total value of restricted funds held as 30 June 2024 was £225,009 (2023: £452,616).

Investment policy

The trustees have the power to invest in such assets as they see fit. Safety of the Charity’s assets is an important factor for the board and consequently most of its reserves are held in cash at longestablished banks.

Events after the reporting period

None.

Charity details

The International Nepal Fellowship (also known as INF/UK) is a registered charity (number 1047178) and a company limited by guarantee (number 03060972).

The company’s registered address is 196-198 Edward Road, Balsall Heath, Birmingham, B12 9LX.

Structure, governance, and management

Governing document

INF/UK is a company limited by guarantee and it is also a Charity registered with the Charity Commission of England and Wales. It is governed by its Articles of Association that were updated in March 2020. There are currently six members of the company, each of whom agrees to contribute £1 in the event of the charity winding up.

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International Nepal Fellowship - Annual Report and Audited Accounts (year ending 30 June 2024)

Appointment of trustees

New trustees are recruited through a mix of advertising (through INF publications) and direct approach by the trustees.

The charity’s policy is that trustees serve for a maximum period of ten years before standing down for a minimum of one year. This, together with a natural turnover of trustees, ensures new trustees are appointed on a regular basis.

The Chair manages the overall trustee composition proactively to ensure a balance of skills and experience is maintained, and to ensure the board does not become stale. The make-up of the board is considered when appointing new trustees.

Trustee induction and training

New trustees undergo an induction programme led by the Chair of Trustees. The programme includes a history of INF/UK and its work, a copy of its accounts, its Articles of Association, and key internal documents including INF/UK’s strategic plan. It also draws heavily on the NCVO publication ‘The Good Trustee Guide’. Once appointed, trustees continue to receive training during trustee meetings and their contribution is reviewed by the Chair of Trustees.

Organisation

The Board of Trustees administers the charity and is responsible for the overall direction of the organisation and the policies that govern the way the organisation functions. The trustees meet a minimum three times a year, one of which is a two-day meeting, with additional meetings as needed.

Responsibility for the day-to-day leadership and management of the charity is delegated to the Chief Executive Officer (CEO) who is appointed by the trustees and is responsible for achieving the charity’s strategic goals. To facilitate effective operations, the CEO has delegated authority, within terms of delegation approved by the trustees, for all operational matters including finance and employment. The CEO is line-managed by the Chair on behalf of the trustees.

Related parties and co-operation with other organisations

None of the trustees receive remuneration or other benefits from their work with the charity. Any connection between a trustee or senior manager of the charity with any supplier or beneficiary must be disclosed to the full board of trustees, similarly for any other contractual relationship with a related party. In the current year no such related party transactions were reported.

While INF/UK’s principal partner is INF/N, there are no voting or appointment rights or any other form of control over it, or by it of INF/UK.

Pay policy for senior staff

All trustees give of their time freely and no trustee received a remuneration in the year. Details of trustee expenses are given in note 7 to the accounts and any related party transactions are disclosed in note 20 to the accounts.

The pay of senior staff is reviewed annually and benchmarked against pay levels in charities of a similar size and complexity.

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International Nepal Fellowship - Annual Report and Audited Accounts (year ending 30 June 2024)

Risk management

The trustees have a risk management strategy:

The CEO regularly scans the charity’s environment and attends regular development sector meetings under the auspices of BOND, a UK network for organisations working in international development, where sector wide information is shared.

The charity is acutely aware of the cumulative impact that disruptive events over the past few years on its environment and work. Initially it was the impact of COVID, which was superseded by the war in Ukraine, the cost-of-living crisis, and more recently the war in the Middle East. The charity is well structured financially to meet these continuing challenges.

The charity is also aware of the risks faced by its partners in Nepal and the CEO maintains close contact with the leadership teams of its partners to keep abreast of the risks they are facing.

Small company provisions

The trustees’ report has been prepared in accordance with the provisions applicable to companies entitled to the small companies’ exemption provided by section 408 and section 414B (b) of the Companies Act 2006.

Voluntary help and gifts in kind

The trustees are very grateful to a number of volunteers who have helped in various aspects of our work during the past year.

Statement of responsibilities of the trustees

The trustees (who are also directors of the charity for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Company law 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 income and expenditure of the charity for that period. In preparing those financial statements the trustees are required to:

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International Nepal Fellowship - Annual Report and Audited Accounts (year ending 30 June 2024)

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Companies Act 2006. 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.

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

Auditors

Godfrey Wilson Limited were re-appointed as auditors to the charitable company during the year and have expressed their willingness to continue in that capacity.

Approved by the trustees on date 27 January 2025 and signed on their behalf by:

Dr Ian Smith – Chair

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International Nepal Fellowship - Annual Report and Audited Accounts (year ending 30 June 2024)

International Nepal Fellowship

Reference and administrative details

For the year ended 30 June 2024

Company number 03060972 Charity number 1047178 Registered office and 196 -198 Edward Road operational address Balsall Heath Birmingham B12 9LX Trustees Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows: Deborah Angdembe Vijaya Adhikari resigned 6 October 2024 Stephen Collins Dr Andrew Cordell appointed 8 June 2024 Rosemary Hart Professor Andrew Lymer (Treasurer) David McConkey resigned 6 October 2024 Dr Ian Smith (Chair, appointed 5 October 2024) Michael Thomas (former Chair, resigned 5 October 2024) resigned 6 October 2024 Chief executive officer John Reynolds Bankers Bank of Scotland 33 Old Broad Street London EC2N 1HW Solicitors Anthony Collins Solicitors 134 Edmund Street Birmingham B3 2ES Auditors Godfrey Wilson Limited Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

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Independent auditors' report

To the members of

International Nepal Fellowship

Opinion

We have audited the financial statements of International Nepal Fellowship (the 'charity') for the year ended 30 June 2024 which comprise the statement of financial activities, balance sheet, statement of cash flows and the related notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

▪have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and the provisions available for small entities, in the circumstances set out in note 7 to the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

18

Independent auditors' report

To the members of

International Nepal Fellowship

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of the trustees

As explained more fully in the trustees’ responsibilities statement set out in the trustees’ report, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

19

Independent auditors' report

To the members of

International Nepal Fellowship

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The procedures we carried out and the extent to which they are capable of detecting irregularities, including fraud, are detailed below:

(1) We obtained an understanding of the legal and regulatory framework that the charity operates in, and assessed the risk of non-compliance with applicable laws and regulations. Throughout the audit, we remained alert to possible indications of non-compliance.

(2) We reviewed the charity’s policies and procedures in relation to:

(3) We inspected the minutes of trustee meetings.

(4) We enquired about any non-routine communication with regulators and reviewed any reports made to them.

(5) We reviewed the financial statement disclosures and assessed their compliance with applicable laws and regulations.

(6) We performed analytical procedures to identify any unusual or unexpected transactions or balances that may indicate a risk of material fraud or error.

(7) We assessed the risk of fraud through management override of controls and carried out procedures to address this risk. Our procedures included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. Irregularities that arise due to fraud can be even harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

20

Independent auditors' report

To the members of

International Nepal Fellowship

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charityʼs members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charityʼs members those matters we are required to state to them in an auditorʼs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charityʼs members as a body, for our audit work, for this report, or for the opinions we have formed.

Alison Godfrey

Date: 27 January 2025

Alison Godfrey FCA (Senior Statutory Auditor)

For and on behalf of:

GODFREY WILSON LIMITED

Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

21

International Nepal Fellowship

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 30 June 2024

Note
Income from:
Donations and legacies
3
Investments
4
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
6
Net gains on investments
12
7
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
Net income / (expenditure) and
net movement in funds		 Restricted
£
313,486
-
313,486
-
541,093
541,093
-
(227,607)
452,616
225,009		 Unrestricted
£
397,569
20,345
417,914
158,559
146,751
305,310
7,432
120,036
670,220
790,256		 2024
Total
£
711,055
20,345
731,400
158,559
687,844
846,403
7,432
(107,571)
1,122,836
1,015,265		 2023
Total
£
786,056
12,111
798,167
111,175
828,425
939,600
2,763
(138,670)
1,261,506
1,122,836

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 18 to the accounts.

22

International Nepal Fellowship

Balance sheet

As at 30 June 2024

2024 2023
Note £ £ £
Fixed assets
Tangible assets 11 627 1,453
Investments 12 54,847 47,415
55,474 48,868
Current assets
Debtors 13 20,565 42,446
Current asset investments 745,426 1,025,797
Cash at bank and in hand 282,115 153,065
1,048,106 1,221,308
Liabilities
Creditors: amounts falling due within 1 year 14 (88,315) (130,395)
Net current assets 959,791 1,090,913
Total assets less current liabilities 1,015,265 1,139,781
Creditors: amounts falling due after 1 year 15 - (16,945)
Net assets 17 1,015,265 1,122,836
Funds 18
Restricted funds 225,009 452,616
Unrestricted funds
Designated funds 581,475 617,812
General funds 208,781 52,408
Total charity funds 1,015,265 1,122,836

These accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

Approved by the trustees on 27 January 2025 and signed on their behalf by

Dr Ian Smith - Chair

23

International Nepal Fellowship

Statement of cash flows

For the year ended 30 June 2024

Cash used in operating activities:
Net movement in funds
Adjustments for:
Depreciation charges
Gains on investments
Investment income
Decrease / (increase) in debtors
Decrease in creditors
Net cash used in operating activities
Cash flows from investing activities:
Investment income
Net cash provided by investing activities
Decrease in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Total cash and cash equivalents comprise:
Current asset investments
Cash at bank and in hand
Cash and cash equivalents at the end of the year		 2024
£
(107,571)
826
(7,432)
(20,345)
21,881
(59,025)
(171,666)
20,345
20,345
(151,321)
1,178,862
1,027,541
745,426
282,115
1,027,541		 2023
£
(138,670)
819
(2,763)
(12,111)
(20,352)
(70,338)
(243,415)
12,111
12,111
(231,304)
1,410,166
1,178,862
1,025,797
153,065
1,178,862

The charity has not provided an analysis of changes in net debt as it does not have any long term financing arrangements.

24

International Nepal Fellowship

Notes to the financial statements

For the year ended 30 June 2024

1. Accounting policies

a) Basis of preparation

International Nepal Fellowship is a charitable company limited by guarantee registered in England and Wales. The registered office address is 196-198 Edward Road, Balsall Heath, Birmingham, B12 9LX.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities in preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

International Nepal Fellowship 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 note.

b) Going concern basis of accounting

The accounts have been prepared on the assumption that the charity is able to continue as a going concern, which the trustees consider appropriate having regard to the current level of unrestricted reserves. There are no material uncertainties about the charity's ability to continue as a going concern.

c) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

d) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity: this is normally upon notification of the interest paid or payable by the bank.

25

International Nepal Fellowship

Notes to the financial statements

For the year ended 30 June 2024

1. Accounting policies (continued)

e) Funds accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the charity. As published on the charity's website, up to 15% of all restricted funds are treated as unrestricted as a contribution to support costs including governance, personnel, office, fundraising, and finance functions.

f) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

g) Grants payable

Grants payable are recognised as expenditure when the commitment is entered into. Where such a grant is to be paid over instalments, the outstanding balance is recognised as a liability to the extent that a legal or constructive obligation exists.

h) Allocation of support and governance costs

Support costs are the costs incurred by UK-based staff, directly providing support for the staff and programmes based in Nepal. Governance costs are the costs associated with the governance arrangements of the charity, including the costs of complying with constitutional and statutory requirements and any costs associated with the strategic management of the charity’s activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities based on the proportion of direct costs, as follows:

2024 2023
Raising funds 19% 12%
Charitable activities 81% 88%

i) Tangible fixed assets

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Computer equipment 3 years straight line

Items of equipment are capitalised where the purchase price exceeds £1,000.

j) Listed investments

Listed investments traded on a recognised stock exchange are stated at fair value at the reporting date, which is deemed to be their market value. Any gain or loss, whether realised or unrealised, is taken to the Statement of Financial Activities.

26

International Nepal Fellowship

Notes to the financial statements

For the year ended 30 June 2024

1. Accounting policies (continued)

k) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

l) Current asset investments

Current asset investments consist of cash held on deposit in interest bearing accounts. Such investments are measured at their fair value.

m) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of one month or less from the date of acquisition or opening of the deposit or similar account.

n) Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

o) Financial instruments

The charitable company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently recognised at amortised cost using the effective interest method.

p) Pension costs

The company operates a defined contribution pension scheme for its employees. The assets of the scheme are held separately from those of the company in an independently administered fund. There are no further liabilities other than that already recognised in the SOFA.

q) Foreign currency transactions

Transactions in foreign currencies are translated at rates prevailing at the date of the transaction. Balances denominated in foreign currencies are translated at the rate of exchange prevailing at the year end. Exchange differences are recognised in the SOFA.

r) Operating leases

Payments made under operating leases are charged on a straight line basis over the term of the lease.

s) Accounting estimates and key judgements

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

27

International Nepal Fellowship

Notes to the financial statements

For the year ended 30 June 2024

1. Accounting policies (continued)

s) Accounting estimates and key judgements (continued)

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are depreciation as described in note 1i above.

2. Prior period comparatives: statement of financial activities

Income from:
Donations and legacies
Investments
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Net gains on investments
Income from donations and legacies
Donations for partners' programmes and projects
Volunteer worker support fund
General donations
Legacy income
Total income from donations and legacies
Net income / (expenditure) and net
movement in funds		 Restricted
£
£
398,520
387,536
-
12,111
398,520
399,647
-
111,175
663,597
164,828
663,597
276,003
-
2,763
(265,077)
126,407
Restricted
£
£
291,782
-
21,704
-
-
237,678
-
159,891
313,486
397,569
Unrestricted
Unrestricted		 2023
Total
£
786,056
12,111
798,167
111,175
828,425
939,600
2,763
(138,670)
2024
Total
£
291,782
21,704
237,678
159,891
711,055

3. Income from donations and legacies

28

International Nepal Fellowship

Notes to the financial statements

For the year ended 30 June 2024

3.
Income from donations and legacies (continued)
Prior period comparative
Donations for partners' programmes and projects
Volunteer worker support fund
General donations
Legacy income
Total income from donations and legacies
4.
Investment income
Bank interest
Dividends
Total income from investments		 Restricted
£
£
350,294
-
25,882
-
-
231,243
22,344
156,293
398,520
387,536
2024
£
20,279
66
20,345
Unrestricted		 2023
Total
£
350,294
25,882
231,243
178,637
786,056
2023
£
12,111
-
12,111

All investment income in the current and prior period was unrestricted.

5. Government grants

The charitable company receives government grants, defined as funding from the Department for Work and Pensions to fund charitable activities. The total value of such grants in the period ending 31 June 2024 was £10,092 (2023: £nil). There are no unfulfilled conditions or contingencies attaching to these grants in the current or prior year.

29

International Nepal Fellowship

Notes to the financial statements

For the year ended 30 June 2024

6. Total expenditure

Total expenditure
Grants payable (note 8)
Volunteer workers support costs
Website, CRM and outsourced services
Fundraising expenses
Personnel costs (note 9)
Premises and office costs
Finance, legal and professional
Depreciation
Trustee expenses
Exchange gains
Sub-total
Allocation of support and governance costs
Total expenditure		 Raising funds
£
-
-
7,904
52,716
46,273
-
-
-
-
-
106,893
51,666
158,559		 Charitable
activities
£
413,172
5,394
-
-
45,148
-
-
-
-
-
463,714
224,130
687,844		 Support costs
£
-
-
-
-
238,307
15,193
8,088
826
-
(42)
262,372
(262,372)
-		 Governance
costs
£
-
-
-
-
-
-
9,720
-
3,704
-
13,424
(13,424)
-		 2024 Total
£
413,172
5,394
7,904
52,716
329,728
15,193
17,808
826
3,704
(42)
846,403
-
846,403

30

International Nepal Fellowship

Notes to the financial statements

For the year ended 30 June 2024

6.
Total expenditure (continued)
Prior period comparative
Grants payable (note 8)
Volunteer workers support costs
Website, CRM and outsourced services
Fundraising expenses
Personnel costs (note 9)
Premises and office costs
Finance, legal and professional
Depreciation
Trustee expenses
Exchange gains
Sub-total
Allocation of support and governance costs
Total expenditure		 Raising funds
£
-
-
12,158
31,450
37,254
-
-
-
-
-
80,862
30,313
111,175		 Charitable
activities
£
549,639
14,602
-
-
38,300
-
-
-
-
-
602,541
225,884
828,425		 Support costs
£
-
-
-
-
216,885
15,045
12,620
819
-
(2,173)
243,196
(243,196)
-		 Governance
costs
£
-
-
-
-
-
-
9,420
-
3,581
-
13,001
(13,001)
-		 2023 Total
£
549,639
14,602
12,158
31,450
292,439
15,045
22,040
819
3,581
(2,173)
939,600
-
939,600

31

International Nepal Fellowship

Notes to the financial statements

For the year ended 30 June 2024

7. Net movement in funds

This is stated after charging:

Depreciation
Trustees' remuneration
Trustees' reimbursed expenses
Auditors' remuneration:
▪Statutory audit (excluding VAT)		 2024
£
826
Nil
3,704
8,100		 2023
£
819
Nil
3,581
7,850

Trustees' reimbursed expenses relate to travel expenses incurred by 4 trustees (2023: 4 trustees).

In common with other charities of our size and nature we use our auditors to assist with the preparation of the financial statements.

8. Grants payable to partners

Group of Helping Hands (SAHAS) Nepal
United Mission to Nepal
Total grants committed in the period
Grants written back from prior periods
INF Nepal
Asal Chhimekee Nepal (ACN)
Total grant expenditure
Sarwangin Sewa Samaj
Grants < £5k		 2024
£
295,771
30,517
39,580
8,600
45,000
442
419,910
(6,738)
413,172		 2023
£
298,704
83,245
158,278
5,000
-
4,412
549,639
-
549,639

All grants are paid to fund charitable activities in Nepal. The grants shown above do not include any support cost allocations.

32

International Nepal Fellowship

Notes to the financial statements

For the year ended 30 June 2024

9. Staff costs and numbers

Staff costs were as follows:

Salaries and wages
Social security costs
Pension costs
Courses, travel and other		 2024
£
260,501
20,799
25,452
22,976
329,728		 2023
£
239,638
18,701
26,452
7,648
292,439

Included in salaries and wages are redundancy and termination costs totalling £2,704. Redundancy and termination costs have been funded from unrestricted general funds (note 18).

No employee earned more than £60,000 during the year (2023: none).

The key management personnel of the charitable company comprise the Trustees and Chief Executive Officer. The total employee benefits of the key management personnel including gross wages, employer's national insurance and pension contributions were £68,853 (2023: £62,125).

Average head count 2024
No.
7.25		 2023
No.
8.08

10. Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

11. Tangible fixed assets

Cost
At 1 July 2023 and 30 June 2024
Depreciation
At 1 July 2023
Charge for the year
At 30 June 2024
Net book value
At 30 June 2024
At 30 June 2023		 £
5,832
Computer
equipment
4,379
826
5,205
627
1,453

33

International Nepal Fellowship

Notes to the financial statements

For the year ended 30 June 2024

12. Investments
Market value at 1 July
Unrealised gains
Market value at 30 June
13. Debtors
Gift aid receivable
Prepayments
Accrued income
14. Creditors: amounts falling due within 1 year
Grant commitments (note 16)
Accruals
Other taxation and social security
15. Creditors: amounts falling due after 1 year
Grant commitments (note 16)
16. Grants commitments
Grant commitments brought forward
Grants committed during the period (note 8)
Grants written back in the period (note 8)
Grants paid during the period
Grant commitments carried forward		 2024
£
47,415
7,432
54,847
2024
£
6,298
9,437
4,830
20,565
2024
£
54,253
29,194
4,868
88,315
2024
£
-
2024
£
120,754
419,910
(6,738)
(479,673)
54,253		 2023
£
44,652
2,763
47,415
2023
£
9,206
7,214
26,026
42,446
2023
£
103,809
21,995
4,591
130,395
2023
£
16,945
2023
£
173,198
549,639
-
(602,083)
120,754

34

International Nepal Fellowship

Notes to the financial statements

For the year ended 30 June 2024

17. Analysis of net assets between funds

Analysis of net assets between funds
Tangible fixed assets
Investments
Net current assets
Net assets at 30 June 2024
Prior period comparative
Tangible fixed assets
Investments
Net current assets
Creditors: due after 1 year
Net assets at 30 June 2023		 Restricted
funds
£
-
-
225,009
225,009
Restricted
funds
£
-
-
452,616
-
452,616		 £
-
54,847
526,628
581,475
£
-
47,415
570,397
-
617,812
Designated
funds
Designated
funds		 General
funds
£
627
-
208,154
208,781
General
funds
£
1,453
-
67,900
(16,945)
52,408		 Total
funds
£
627
54,847
959,791
1,015,265
Total
funds
£
1,453
47,415
1,090,913
(16,945)
1,122,836

35

International Nepal Fellowship

Notes to the financial statements

For the year ended 30 June 2024

18. Movements in funds

Restricted funds
Partners' programmes and projects:
Gordon Leitch memorial fund
Chhahari School
KISC
Volunteer workers support fund
Welfare fund for volunteer workers
Total restricted funds
Designated funds:
Operating reserve
Nepal programmes
Investment in growth
Total designated funds
General funds
Total unrestricted funds
Total funds
Unrestricted funds
INF Nepal programmes & disaster relief		 At 1 July
2023
£
341,485
29,316
442
193
69,036
12,144
452,616
240,000
265,979
111,833
617,812
52,408
670,220
1,122,836		 Income
£
281,690
-
-
-
31,796
-
313,486
-
-
-
-
417,914
417,914
731,400		 £
£
(446,881)
-
-
-
-
-
-
-
(94,212)
-
-
-
(541,093)
-
-
-
-
-
(36,337)
-
(36,337)
-
(268,973)
7,432
(305,310)
7,432
(846,403)
7,432
Gains / (losses)
on investments
Expenditure		 £
635
-
(442)
(193)
-
-
-
-
-
-
-
-
-
-
Transfers
between funds		 £
176,929
29,316
-
-
6,620
12,144
At 30 June
2024
225,009
240,000
265,979
75,496
581,475
208,781
790,256
1,015,265

36

International Nepal Fellowship

Notes to the financial statements

For the year ended 30 June 2024

18. Movements in funds (continued)
Restricted funds
Partners' programmes and projects:
Gordon Leitch memorial fund
Chhahari School
HBTA
KISC
PRABHAV
Samaritan Home
Volunteer workers support fund
Welfare fund for volunteer workers
Total restricted funds
Designated funds:
Operating reserve
Nepal programmes
Investment in growth
Total designated funds
General funds
Total unrestricted funds
Total funds
Unrestricted funds
Prior period comparative
INF Nepal programmes & disaster relief		 At 1 July
2022
£
542,741
29,316
442
425
193
334
2,746
120,087
21,409
717,693
240,000
165,979
125,000
530,979
12,834
543,813
1,261,506		 Income
£
372,638
-
-
-
-
-
-
25,882
-
398,520
-
-
-
-
399,647
399,647
798,167		 £
£
(573,894)
-
-
-
-
-
(425)
-
-
-
(334)
-
(2,746)
-
(76,933)
-
(9,265)
-
(663,597)
-
-
-
-
-
(13,167)
-
(13,167)
-
(262,836)
2,763
(276,003)
2,763
(939,600)
2,763
Expenditure
Gains / (losses)
on investments		 £
-
-
-
-
-
-
-
-
-
-
-
100,000
-
100,000
(100,000)
-
-
Transfers
between funds		 £
341,485
29,316
442
-
193
-
-
69,036
12,144
At 1 July 2023
452,616
240,000
265,979
111,833
617,812
52,408
670,220
1,122,836

37

International Nepal Fellowship

Notes to the financial statements

For the year ended 30 June 2024

18. Movements in funds (continued)

Purposes of restricted funds

Partners' programmes and projects

The charity raises funds to support its partners’ programmes and projects, primarily from individuals, trusts and foundations. These funds are managed and paid to partners under Memorandums of Understanding (MoUs) signed between the charity and its partners. An MoU will reference the plans and budgets upon which an agreement has been made, and it will also contain a reporting and payment schedule. Payments are normally paid against a report from a partner detailing the work completed against its plans and money spent against the previously submitted budget. MoUs normally cover a period of 12-36 months. Funds received by the charity for a partner’s project, but not yet guaranteed for payment, are held as restricted funds in the charity’s accounts until firm commitments are made.

Volunteer workers support fund

The purpose of this fund is several-fold. This provides a cushion against fluctuating income for volunteer allowances and gives peace of mind to volunteer workers while serving with INF. It also provides liquid funds to enable the repatriation of all workers from Nepal in the event of a natural disaster or civil unrest. Finally, because living allowances are higher when a volunteer is on Home Assignment in his/her home country, an element of provision is needed to cover these higher costs.

Welfare fund for volunteer workers

This fund is a result of a major fundraising effort some years ago on behalf of Volunteer Workers. It grew through continuing standing orders and now amounts to £12,144. One example of the way this fund is used are small individual grants offered to retired Volunteer Workers to assist for travel costs associated with INF Conferences.

Purposes of designated funds

Operating reserve

The policy of the board is to hold an operating reserve of 6-12 months of the budgeted annual costs of INF/UK to cover unforeseen operating events. The sum of £240,000 is held in this reserve being approximately 8 months budgeted annual costs for 2024/25.

Nepal programmes

Moneys allocated from the general fund for grants to partners in Nepal, but not yet disbursed, are designated as the programmes fund. Grants given by INF/UK are assessed against agreed criteria including INF's charitable purposes and its agreed vision and mission statements. Grants may be given for periods up to 3 years and are documented in memorandums of understanding with each partner.

Investment in growth

The charity recognises that it will incur costs as a result of its growth strategy ahead of generating income. Expendtiure against the fund in 2023/24 relates to external fundraising costs.

Transfers between funds

Transfers between funds relate to the repurposing of historical restricted funds to the main INF Nepal programmes & disaster relief fund.

38

International Nepal Fellowship

Notes to the financial statements

For the year ended 30 June 2024

19. Operating lease commitments

The charity had operating leases at the year end with total future minimum lease payments as follows:

Amount falling due:
Within 1 year		 2024
£
1,725		 2023
£
1,800

20. Related party transactions

There were no related party transactions during the year (2023: none).

21. Financial instruments at fair value

Financial assets measured at fair value 2024
£
54,847		 2023
£
47,415

Financial assets measured at fair value comprise listed investments.

39