2021-03-31-accounts

Community Action Nepal

(A company limited by guarantee)

Annual Report and Financial Statements

31 March 2021

Company registration number: 3477884 Charity registration number: 1067772

Community Action Nepal

Contents

Reference and Administrative Details	1
Trustees' report	3
Trustees' responsibilities in relation to the financial statements	7
Independent examiner's report	8
Statement of financial activities	9
Balance sheet	10
Cash flow statement	11
Notes to the financial statements	12

Community Action Nepal

Reference and Administrative Details

Charity name	Community Action Nepal	Community Action Nepal
Charity registration number	1067772
Company registration number	3477884
Principal office	Stewart Hill Cottage
	Hesket Newmarket
	WIGTON
	CA7 8HX
Registered office	FIFTEEN Rosehill
	Montgomery Way
	Rosehill Estate
	CARLISLE
	CA1 2RW
Trustees	J Frew
	Dr R E Lorge
	B Gyawali	(resigned 6 May 2021)
	P Braithwaite
	L Houlding
	Dr M L Shrestha	(resigned 24 September 2021)
	A Parkin	(resigned 24 September 2021)
	B Ayers	(resigned 1 November 2021)
	D B Webber
	P R Powell
	C Buchan
	Dr C A Souch
	Dr R A Welford
	Dr R A Parkin
	J Maguire	(resigned 12 February 2021)
	D E Wilson	(appointed 25 September 2020)
		(resigned 29 October 2021)
	M L Lewis	(appointed 6 August 2021)
	G D Utting	(appointed 24 September 2021)
	P B Pearson	(appointed 5 November 2021)

Page 1

Community Action Nepal

Reference and Administrative Details

Patrons

Bankers

Accountant

Sir C J S Bonington CBE P B Scott Cumberland Building Society 38 Fisher Street CARLISLE CA3 8RQ Dodd & Co Limited FIFTEEN Rosehill Montgomery Way Rosehill Estate CARLISLE CA1 2RW

Page 2

Community Action Nepal

Trustees' Report for the Year Ended 31 March 2021

The Trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the Company for the year ended 31 March 2021.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the Charity’s governing document, the Charities Act 2011 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 published on 16 July 2014.

REFERENCE AND ADMINSTRATIVE DETAILS

The founder and Operations Director of the charity, the late Douglas Keith Scott CBE, passed away on 7 December 2020 after a period of illness diagnosed in March 2020. His passing has been an enormous loss and great sadness to the charity, its supporters, Patrons, Trustees, Staff in the UK and Nepal and the remote mountain communities in Nepal that are supported by Community Action Nepal.

The Trustees have confirmed a willingness and resolve to continue the charity, his legacy, and to serve the mountain communities of Nepal.

The trustees who served during the year and who have been appointed since the year end are detailed on page one.

The trustees are appointed by the Council of Trustees in accordance with the Charity’s Articles of Association.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Charity is incorporated as a Company Limited by Guarantee and the governing document takes the form of the company’s Memorandum and Articles of Association.

Following the earthquake of 2015, many of the UK Trustees regularly visited the project sites and rebuilding programmes, providing advice to everyone involved with the planning, scheduling, improvement and rebuild. With the post-earthquake rebuilding virtually complete, the work of CAN will be focusing on its original core purpose of continuing to deliver aid and support to the communities served by the buildings. The Trustees remain in frequent telephone and email contact with the Operations Director Nepal.

At the Annual General Meeting a Secretary, Treasurer and Chairman of the charity are nominated, seconded and appointed. Due to distance, it is not always possible for every member to attend each meeting and the Charity makes increasing use of web-based calls and conference calls. During the early onset of the Covid-19 pandemic and lockdown, the Trustees held weekly Zoom meetings; these were usually attended by UK trustees, UK trustees located in Nepal, the Operations Director Nepal and Patron(s), to discuss the day to day needs of CAN Nepal, its staff in both Kathmandu and the remote villages, seeking to ensure PPE was made available and distributed, together with vaccination for staff. The work of CAN and its finances are always available for inspection. Minutes of the meetings are circulated to all Trustees and relevant information conveyed as appropriate to members of the Management Committee in Nepal and to the Operations Director Nepal.

New trustees are inducted into their role by existing trustees who explain the charity’s objectives and activities and pass on their detailed knowledge of the charity’s projects and its finances. Trustees are directed towards guidance issued by the Charity Commission and Companies House as to the legal responsibilities they have as trustees and directors and are encouraged to seek any opportunities to continually develop their skills and knowledge.

Page 3

Community Action Nepal

Trustees' Report for the Year Ended 31 March 2021

RISK ASSESSMENT

The Trustees agree and are made aware of their duty to consider the risks that the Charity faces. Reserves accumulated both in the UK bank accounts and in the Kathmandu accounts are maintained at a level to ensure cash reserves are available to support the project work and payment of staff employed to maintain the work. The UK holds funds in a current account and two interest-bearing reserve accounts. Funds are sent quarterly to the Kathmandu office on receipt of detailed information about funds needed for the following quarter. Trustees are aware that the Charity does not over extend spending in relation to the number of projects maintained. The weakening of the GBP during Brexit negotiations has been a major consideration. CAN in Nepal is in close liaison with the Social Welfare Council [SWC] in Nepal about their future requirements and stipulations that were fully implemented by 1 January 2020. Since January 2020, CAN has handed over more of the dispersed project areas, in compliance with SWC requirements for the next five year period from 10 June 2020 to 9 June 2025. CAN is concentrating on the less accessible region of North Gorkha, Nubri and the Tsum Valley.

To reduce the risks attached to the use in Nepal of monies raised in the UK, the Charity is registered as an NGO and INGO in Nepal. The UK Trustees are satisfied that CAN has staff and procedures in place to ensure monies are strictly accounted for and are spent as detailed in the quarterly request information. These also comply with the strict and robust accounting procedures of organisations associated with funding part of CAN’s work.

As previously, the trustees are aware that effective financial control is essential both in the UK and in Nepal. Fundraising continues to be a high priority together with on-going awareness of the economic situations in both the UK and in Nepal.

OBJECTIVES AND ACTIVITIES

The Charity was set up in 1997 to provide relief of poverty, sickness and distress amongst the people of Nepal in the project areas in compliance with the stipulations of the Social Welfare Council [SWC] of Nepal, as set out in the Memorandum of Association. The activities, projects and services covered comprise support for health, education and the relief of poverty and distress in the SWC nominated and agreed areas.

In setting the charity’s objectives, the trustees have paid due regard to Charity Commission guidance on public benefit.

The main objective of the Charity during the period under review was to complete the rebuilding work adhered to the Build Back Better principles, thus ensuring maximum protection if there are future earthquake risks; therefrom, to ensure the secure handover of projects that by the end of 2019 fell outside the SWC stipulated area. Both the UK and Nepal Operations Directors maintain close contact with the SWC. CAN is fortunate to have benefited from generous funding, professional advice, and experience from visiting volunteers, as well as visits to project sites from self-funding members of the Trustee group and the charity's founder, the late Douglas Scott CBE.

The Charity is grateful for and acknowledges the generous contributions made by volunteers who raise funds in the UK and overseas to support the activities as detailed in the accounts and by volunteers who completely self-fund agreed visits to the projects in Nepal and report back to the Trustees.

ACHIEVEMENTS AND PERFORMANCE

During the year under review the donations received by the Charity and regular standing order payments enabled the Charity to transfer to Nepal £318,715 of funds used mainly for the rebuilding work following the earthquake. Expenditure continues in the furtherance of the Charity’s objectives and activities.

Trustees review the levels of reserves in the UK and in Nepal, the on-going repair and maintenance costs, staff costs, exchange rates and future financial requirements needed to ensure the Charity can fulfil commitments.

The Trustees are therefore satisfied that the Charity remains on a secure financial footing and that policies are maintained during the fluctuating and variable economic conditions. They are particularly grateful for the remarkable support received from donors worldwide who continue to help CAN to meet the current additional funding requirements.

Page 4

Community Action Nepal

Trustees' Report for the Year Ended 31 March 2021

FINANCIAL REVIEW

CAN’s principal funding sources are the regular standing order donations and large grants from national and international charities and individual donors. Donations given for a nominated project or purpose are recorded as “restricted” as appropriate. The quarterly bank transfers to the Kathmandu bank account enable the continuity of the Charity’s objectives in Nepal in accordance with UK Trustees’ decisions, as recorded in the Minutes of the Meetings. UK Trustees regularly seek advice from the Kathmandu based Operations Director, the Management Committee that represents the communities within the project areas, and the Nepal-based members of the UK Trustees.

The SWC in Nepal scrutinises CAN’s work for periods of five years. Their endorsement entitles CAN to apply to the Government of Nepal for grants towards existing and future project work. This agreement with the SWC has been renewed from June 2020 to June 2025.

RESERVES

The Trustees have reviewed the reserves of the Charity. The reserve funds at the end of the year under review are £743,808 being made up of £649,554 of unrestricted funds and £94,254 of restricted funds. £318,715 has been sent to Nepal during this period to fund the on-going project work and the reconstruction work. Free reserves at the year end were £648,183.

The restricted Big Lottery Fund has continued to support projects but the funding will end in October 2021 and no further grants are expected from this source.

The majority of the Charity’s reserves are held as cash. They will be used, at the discretion of the Trustees, towards the primary objectives of the Charity and as a contingency fund to cover any unforeseen expenditure as in the year under review.

PLANS FOR FUTURE PERIODS

The aims and objectives for the future are the maintenance and continuity of education, health and community development programmes already established and careful evaluation of the future project areas and focus as stipulated by, and agreed with, the SWC.

The post-earthquake rebuilding work and repair work has now been completed and was of higher standards than those presently stipulated by the Nepali Government. In the course of signing off repaired buildings CAN has agreed to build two more rural health facilities in North Gorkha at Nyak and Bhangsing and a primary school at Prok. The rebuilding works on completed sites and future sites were, and will continue to be, regularly inspected by qualified Nepal staff who have received training in the planning and rebuilding methods recognised in the “Build Back Better” programme with some CAN Nepal staff receiving additional training in the UK.

CAN has continued to support three porter rescue shelters which CAN built in the past but discussions are underway to hand over the running of these facilities to local organisations in the Solu Khumbu.

PUBLIC BENEFIT REPORTING

The Charity delivers health, education and community development benefits to dispersed, diverse and remote village communities in Nepal. The work continues to support cultural heritage, diversification and long-term viability.

The Charity’s trustees and employees do not receive any undisclosed benefits.

The project work is carried out in the geographical locations agreed with the SWC in Nepal and for the general community regardless of age, gender, economic circumstance, religion or caste.

The Charity’s trustees are aware of the above requirements and the Charity Commission’s Public Benefit guidance and have previously and will in the future, continue to follow these guidelines.

Page 5

Community Action Nepal

Trustees' Report for the Year Ended 31 March 2021

FUNDS HELD AS CUSTODIAN TRUSTEE

The Charity holds funds on behalf of other small charities not registered with the Charity Commission of England and Wales as follows:

Kashigaun: £2,224

The above small charity raises funds in the UK but operates small projects in Nepal. From time to time it deposits funds into the Community Action Nepal UK bank account and asks for agreed sums to be transferred to its accounts in Kathmandu. In addition, it asks for advice from both the UK and Kathmandu offices of Community Action Nepal concerning its activities. The sums held on its behalf are recorded as restricted for that small charity.

Small company provisions

This report has been prepared in accordance with the small companies regime under the Companies Act 2006.

Approved by the Board on 10 December 2021 and signed on its behalf by:

.........................................

M L Lewis Trustee

Page 6

Community Action Nepal

Trustees' Responsibilities in relation to the Financial Statements

The trustees (who are also directors of Community Action Nepal for the purposes of company law) are responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and the Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

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 charitable company and of the incoming resources and application of resources, including income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 7

Independent Examiner's Report to the Trustees of

Community Action Nepal

I report on the accounts of the company for the year ended 31 March 2021, which are set out on pages 9 to 25.

Respective responsibilities of trustees and examiner

The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

The charity's gross income exceeded £250,000 and I am qualified to undertake the examination by being a qualified member of The Institute of Chartered Accountants in England and Wales (ICAEW).

Having satisfied myself that the charity is not subject to audit under Part 16 of the Companies Act 2006 and is eligible for independent examination, it is my responsibility to:

• examine the accounts under section 145 of the 2011 Act;

• follow the procedures laid down in the General Directions given by the Charity Commission under section 145 (5) (b) of the 2011 Act; and

• state whether particular matters have come to my attention.

Basis of independent examiner's report

My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set out in the statement below.

Independent examiner's statement

In connection with 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 386 of the Companies Act 2006; and

• to prepare accounts which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities

have not been met; or

• (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

......................................... Martin S Ward FCA Dodd & Co Limited Chartered Accountants

FIFTEEN Rosehill Montgomery Way Rosehill Estate CARLISLE CA1 2RW

10 December 2021

Page 8

Community Action Nepal

Statement of Financial Activities (including Income and Expenditure Account ) for the Year Ended 31 March 2021

Note Income and endowments from: Donations and legacies 2 Other trading activities 3 Investments 4 Other incoming resources 5 Total income and endowments Expenditure on: Raising funds Charitable activities Total expenditure Net income before transfers Transfers Transfers between funds Net movements in funds Reconciliation of funds Total funds brought forward Total funds carried forward	Unrestricted Funds £ 303,877 21,097 811 -	Restricted Funds £ 185,997 - - -	Total Funds 2021 £ 489,874 21,097 811 -	Total Funds 2020 £ 633,591 106,874 1,649 3
	325,785	185,997	511,782	742,117
	1,765 120,933	- 243,396	1,765 364,329	67,460 536,950
	122,698	243,396	366,094	604,410
	203,087 (255)	(57,399) 255	145,688 -	137,707 -
	202,832 446,722	(57,144) 151,398	145,688 598,120	137,707 460,413
	649,554	94,254	743,808	598,120

All of the Charity's activities derive from continuing operations during the above periods.

The notes on pages 12 to 25 form an integral part of these financial statements.

Page 9

Community Action Nepal

Company registration number: 3477884

Balance Sheet as at 31 March 2021

Note Fixed assets Tangible assets 11 Current assets Stocks and work in progress Debtors 12 Cash at bank and in hand Creditors: Amounts falling due within one year 13 Net current assets Net assets The funds of the charity: Restricted funds Unrestricted funds Unrestricted income funds Total charity funds	2021 £ £ 1,371 3,050 59,740 683,352 746,142 (3,705) 742,437 743,808 94,254 649,554 743,808	2020 £ £ 2,127 3,050 35,520 563,753 602,323 (6,330) 595,993 598,120 151,398 446,722 598,120	2020 £ £ 2,127 3,050 35,520 563,753 602,323 (6,330) 595,993 598,120 151,398 446,722 598,120
			598,120
			151,398 446,722
			598,120

For the financial year ended 31 March 2021, the charity was entitled to exemption from audit under section 477 of the Companies Act 2006.

The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476 of the Act.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

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

Approved by the Board on 10 December 2021 and signed on its behalf by:

.........................................

M L Lewis Trustee

The notes on pages 12 to 25 form an integral part of these financial statements.

Page 10

Community Action Nepal

Cash Flow Statement for the Year Ended 31 March 2021

Net income for the period Depreciation charges Decrease in stocks Increase in debtors Decrease in creditors Increase in cash	2021 £ 145,688 756 - (24,220) (2,625) 119,599	2020 £ 137,707 913 715 (3,511) (448)
		135,376

The notes on pages 12 to 25 form an integral part of these financial statements.

Page 11

Community Action Nepal

Notes to the Financial Statements for the Year Ended 31 March 2021

1 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

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

Basis of preparation

The charitable company meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Going concern

These financial statements have been prepared on a going concern basis.

The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of approval of the financial statements.

Fund accounting policy

Unrestricted income funds are general funds that are available for use at the trustees' discretion in furtherance of the objectives of the charity.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Further details of each fund are disclosed in note 16.

Page 12

Community Action Nepal

Notes to the Financial Statements for the Year Ended 31 March 2021

......... continued

Income and endowments

Donations are recognised when the Charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the Charity before the Charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the Charity and it is probable that these conditions will be fulfilled in the reporting period.

Legacy gifts are recognised on a case by case basis following the grant of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measured with a degree of reasonable accuracy and the title to the asset having been transferred to the Charity.

Deferred income represents amounts received for future periods and is released to incoming resources in the period for which, it has been received. Such income is only deferred when:

• The donor specifies that the donation must only be used in future accounting periods; or - The donor has imposed conditions which must be met before the charity has unconditional entitlement.

Income from tax reclaims are included in the statement of financial activities at the same time as the gift to which they relate.

Income derived from the sale of goods and from events is recognised as earned, that is as the related goods or services are provided.

Investment income is recognised on a receivable basis.

Expenditure

Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

Costs of raising funds are the costs associated with attracting donations and legacies.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Amounts paid to Nepal are payments generally made to the charity's own registered Non Governmental Organisation and International Non Governmental Organisation in Kathmandu, Nepal, in the furtherance of the charitable objectives. These amounts are recognised in the Statement of Financial Activities on their date of payment.

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.

Support costs

Support costs are the general overheads of the company and are accounted for on an accruals basis.

Taxation

The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Page 13

Community Action Nepal

Notes to the Financial Statements for the Year Ended 31 March 2021

......... continued

Fixed assets

Individual fixed assets costing £100 or more are initially recorded at cost.

Depreciation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Fixtures, fittings and equipment

33% straight line basis and 15% reducing balance basis

Stock

Stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated costs to completion and selling costs. Items donated for resale or distribution are not included in the financial statements until they are sold or distributed.

Trade Debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the Charity will not be able to collect all amounts due according to the original terms of the receivables.

Cash and Cash Equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Liabilities

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the Charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Page 14

Community Action Nepal

Notes to the Financial Statements for the Year Ended 31 March 2021

......... continued

Financial instruments

Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Charity after deducting all of its liabilities.

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the Charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the Charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the Charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

Page 15

Community Action Nepal

Notes to the Financial Statements for the Year Ended 31 March 2021

......... continued

2 Donations and legacies

Donations and legacies General donations Frank Davies Family Trust Sandoz Family / De Meuron Foundation Porters Progress UK Jephcott Charitable Trust Nepalese Children's Medical Trust Reach Out for Nepal Big Lottery Community Fund CAFOD Simon & Lou Brown Foundation Anthony Lo Tak Sau Imperial College Union of Students Fred Iseman P A J Gozzard bequest Alan & Nesta Ferguson Charitable Trust Green Energy International Gift Aid tax reclaimed	Unrestricted Funds £ 252,366 12,000 - - - - - - - - - - - - - 25,000 14,511	Restricted Funds £ 61,693 - 25,000 3,000 - 10,000 - 34,065 20,000 20,000 - - - - - - 12,239	Total Funds 2021 £ 314,059 12,000 25,000 3,000 - 10,000 - 34,065 20,000 20,000 - - - - - 25,000 26,750	Total Funds 2020 £ 170,120 12,000 25,000 - 18,500 - 5,300 52,338 - 10,000 30,000 10,508 15,000 250,000 19,000 - 15,825
	303,877	185,997	489,874	633,591

Of the donations and legacies income in 2020, £480,818 related to unrestricted funds and £152,773 related to restricted funds.

3 Other trading activities

Sales of purchased goods Lectures Events income	Unrestricted Funds £ 9,401 780 10,916	Restricted Funds £ - - -	Total Funds 2021 £ 9,401 780 10,916	Total Funds 2020 £ 58,806 37,983 10,085
	21,097	-	21,097	106,874

All of the fundraising income in 2020 related to unrestricted funds.

Page 16

Community Action Nepal

Notes to the Financial Statements for the Year Ended 31 March 2021

......... continued

4 Investments

Interest on cash deposits	Unrestricted Funds £ 811	Restricted Funds £ -	Total Funds 2021 £ 811	Total Funds 2020 £ 1,649

All of the investment income in 2020 related to unrestricted funds.

5 Other incoming resources

	Unrestricted	Restricted		Total Funds	Total Funds
	Funds	Funds		2021	2020
	£	£		£	£
Other income	-		-	-	3

All of the other income in 2020 related to unrestricted funds.

Page 17

Community Action Nepal

Notes to the Financial Statements for the Year Ended 31 March 2021

......... continued

6 Expenditure

Direct costs Amounts paid to Nepal for use in projects Helicopters, hotels and other travel expenses to visit projects in Nepal Lecture expenses including venue hire Event costs Payments to fundraising event partner charity Purchases of goods for resale Support costs Fees for self employed labour Light, heat and power Insurance Repairs and renewals Telephone and fax Website and IT costs Printing, postage and stationery Sundry expenses Cleaning Trustee meetings Travel and subsistence to lectures and events Advertising Accountancy fees Independent examiner's fee Bank charges Depreciation of fixtures, fittings and equipment	Fundraising £ - - 1,765 - - - 1,765 - - - - - - - - - - - - - - - - - 1,765	Charitable activities £ 318,715 - - - - -	Total 2021 £ 318,715 - 1,765 - - -	Total 2020 £ 402,128 21,383 35,860 13,153 1,098 17,349
		318,715	320,480	490,971
		31,708 1,065 - - 2,119 1,044 1,924 1,518 - - - 60 4,966 300 154 756	31,708 1,065 - - 2,119 1,044 1,924 1,518 - - - 60 4,966 300 154 756	76,798 3,768 205 850 4,143 2,596 3,553 2,543 600 524 9,728 - 6,526 300 392 913
		45,614	45,614	113,439
		364,329	366,094	604,410

Of the expenditure in 2020, £444,176 related to unrestricted funds and £160,234 related to restricted funds.

Page 18

Community Action Nepal

Notes to the Financial Statements for the Year Ended 31 March 2021

......... continued

7 Trustees' remuneration and expenses

No remuneration was paid to either any of the Trustees during the year in respect of duties performed in their roles as Trustees.

None of the trustees received any monies to cover travel expenses during the year.

The Charity paid P Powell £9,925 (2020 : £9,115) during the year for providing consultancy services on funding opportunities.

The Charity paid J Maguire £4,168 (2020 : £nil) during the year for providing fundraising and communications services.

8 Net income

Net income is stated after charging:

	2021	2020
	£	£
Depreciation of tangible fixed assets	756	913
Accountancy fees	4,966	6,526
Independent examiner's fee	300	300

9 Employees' remuneration

The Charity had no employees during the year but the Charity did use the services of five self employed persons during the year as and when required.

10 Taxation

The company is a registered charity and is therefore exempt from taxation on income and gains.

Page 19

Community Action Nepal

Notes to the Financial Statements for the Year Ended 31 March 2021

......... continued

11 Tangible fixed assets

Fixtures, fittings and equipment £

Cost As at 1 April 2020 and 31 March 2021 Depreciation As at 1 April 2020 Charge for the year As at 31 March 2021 Net book value As at 31 March 2021 As at 31 March 2020	20,376 18,249 756 19,005 1,371 2,127

12 Debtors

Other debtors including gift aid tax	2021 £ 59,740	2020 £ 35,520

13 Creditors: Amounts falling due within one year

Trade creditors Accruals and deferred income	2021 £ - 3,705 3,705	2020 £ 3,180 3,150
		6,330

14 Members' liability

The charity is a private company limited by guarantee and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.

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Notes to the Financial Statements for the Year Ended 31 March 2021

Community Action Nepal

......... continued

15 Related parties

Controlling entity

The charity is controlled by the trustees who are all directors of the company.

Related party transactions

During the year the Charity purchased no posters, prints and books for resale from the Charity’s former Operations Director, D K Scott, whereas in 2020 it purchased goods from him to the value of £6,180. The Charity also reimbursed him no amounts during the year for travel and accommodation expenses nor for various out of pocket expenses, including fees he paid out to lecture speakers, which were incurred attending events and giving fundraising lectures both in the UK and abroad in the furtherance of the Charity’s work (2020 : £10,402 and £1,528 respectively). D K Scott allowed the Charity to use his home as its office and store place. The charity contributed £1,064, £514 and £nil towards office heat and light costs, telephone costs and cleaning costs respectively (2020 : £3,768, £1,730 and £600). At 31 March 2021 D K Scott owed Community Action Nepal £nil (2020 : £2,530).

D K Scott (Operations Director) was the director of Community Action Treks Limited up to 7 December 2020. Throughout the year a balance existed between the Charity and Community Action Treks Limited due to Community Action Treks Limited receiving donations which should have been paid to the Charity and the Charity settling invoices on behalf of Community Action Treks Limited. At 31 March 2021 Community Action Treks Limited owed the Charity £4,215 (2020 : £4,215).

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Community Action Nepal

Notes to the Financial Statements for the Year Ended 31 March 2021

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16 Analysis of funds

General Funds Unrestricted income fund Restricted Funds Sherpa museum Sailung TriNetra North Gorkha health posts Prok health post Kashigaun school Big Lottery Community Fund CAFOD Prok school Chumling health post North Gorkha cultivation Ripchet clinic Porter relief fund North Gorkha nursing team Covid-19 appeal Nile health post Gorkha pathology laboratory JTA agricultural worker Tsum Nubri IT	At 1 April 2020 £ 446,722 80,276 1,120 - - 1,744 8,737 - 28,750 - - 30,771 - - - - - - - 151,398 598,120	Incoming resources £ 325,785 - - 34,437 21,250 480 34,065 20,000 - 15,000 3,750 - 27,603 10,000 1,462 10,000 325 6,250 1,375 185,997 511,782	Resources expended £ (122,698) (54,318) (1,120) (34,437) (21,250) - (30,372) (10,000) (5,000) (15,000) (3,750) (18,987) (21,000) (10,000) (1,462) (10,000) (325) (5,000) (1,375) (243,396) (366,094)	Transfers £ (255) - - - - - 255 - - - - - - - - - - - - 255 -	At 31 March 2021 £ 649,554
					25,958 - - - 2,224 12,685 10,000 23,750 - - 11,784 6,603 - - - - 1,250 -
					94,254
					743,808

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Community Action Nepal

Notes to the Financial Statements for the Year Ended 31 March 2021

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Prior period

General Funds Unrestricted income fund Restricted Funds Sherpa museum Sailung Trinetra Melamchi hostel/school Bahrabise hostel/school Sama health posts Kashigaun school Langtang village rebuild Four health camps Big Lottery Community Fund Prok school Chumling health post North Ghorka cultivation Ripchet clinic Kashigaun / Yarsa village North Gorkha	At 1 April 2019 £ 328,895 104,687 1,120 8,000 - 3,000 1,744 22,025 (31,860) 8,750 1,306 - 6,971 775 5,000 131,518 460,413	Incoming resources £ - 589,344 10,000 - - 200 - - 1,000 - 52,338 20,000 - 3,750 23,800 41,685 - 152,773 742,117	Resources expanded £ (444,176) (34,411) - (16,384) (200) (3,000) - (1,000) (22,025) (30,698) - (1,306) (3,750) - (42,460) (5,000) (160,234) (604,410)	Transfers £ (27,341) - - 8,384 - - - - - 18,957 - - - - - - 27,341 -	At 31 March 2020 £ 446,722
					80,276 1,120 - - - 1,744 - - 8,737 28,750 - - 30,771 - -
					151,398
					598,120

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Community Action Nepal

Notes to the Financial Statements for the Year Ended 31 March 2021

......... continued

The restricted funds were created for the following projects:

Restricted fund Project Sherpa museum To build a Sherpa heritage home museum and photographic gallery Independent fund administered by CAN on behalf of Sailung TriNetra, an Sailung TriNetra organisation dedicated to education and income generation amongst the rural peoples of East Nepal Melamchi hostel / school To fund general running costs of Melamchi hostel / school To part fund the building of a new hostel building at the residential school for Bahrabise hostel / school deaf children at Bahrabise North Gorkha health posts To support health posts and provide healthcare in North Gorkha Prok health post To assist with the running costs of Prok health post Sama health post To build and fund the running costs of Sama health post Umbrella project administered by CAN to build and fund the running costs of Kashigaun school a school at Kashigaun Langtang village rebuild To assist with the rebuild of the village of Langtang Four health camps To fund the costs of providing four health camps Funding from the Big Lottery to fund post earthquake initiatives including Big Lottery Community Fund health, model gardens, the building of demo homes and enterprise development Funding from CAFOD to respond to the food security consequences of CAFOD Covid-19 in North Gorkha Prok school To build a primary school in Prok Chumling health post To build and fund the running costs of Chumling health post North Ghorka cultivation To promote vegetable cultivation using poly tunnels Ripchet Clinic To build an outreach clinic at Ripchet and provide it with nurses Kashigaun / Yarsa village To assist with building works in Kashigaun / Yarsa village To complete rebuilding works and provide new health facilities in North North Ghorka Gorkha To support porters and their families during the period in which the tourist Porter relief fund trade is closed due to Covid-19 North Gorkha nursing team To assist with the funding of the nursing team in North Gorkha Covid-19 appeal To assist with the prevention, containment and treatment of Covid-19 Nile health post To build and fund the running costs of Nile health post Gorkha pathology laboratory To equip a pathology laboratory in the Gorkha region JTA agriculture worker To fund the salary of a JTA agriculture worker Tsum Nubri IT To fund IT equipment for Tsum Nubri

17 Transfers

During the year transfers were made from the general fund to one restricted fund (see note 16). The monies transferred are the charity's contribution towards the restricted fund project and meets the shortfall in restricted funding.

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Community Action Nepal

Notes to the Financial Statements for the Year Ended 31 March 2021

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18 Net assets by fund

Tangible assets Current assets Creditors: Amounts falling due within one year Net assets Prior period Tangible assets Current assets Creditors: Amounts falling due within one year Net assets		Unrestricted Funds £ 1,371 651,888 (3,705) 649,554 Unrestricted Funds £ 2,127 450,925 (6,330) 446,722		Restricted Funds £ - 94,254 - 94,254 Restricted Funds £ - 151,398 - 151,398		Total Funds 2021 £ 1,371 746,142 (3,705) 743,808 Total Funds 2020 £ 2,127 602,323 (6,330) 598,120		Total Funds 2020 £ 2,127 602,323 (6,330) 598,120 Total Funds 2019 £ 3,040 464,151 (6,778)
								460,413

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