2022-03-31-accounts

Community Action Nepal

(A company limited by guarantee)

Annual Report and Financial Statements

31 March 2022

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	(resigned 7 July 2022)
	B Gyawali	(resigned 6 May 2021)
	P Braithwaite
	L Houlding	(resigned 13 April 2022)
	Dr M L Shrestha	(resigned 24 September 2021)
	A Parkin	(resigned 24 September 2021)
	B Ayers	(resigned 1 November 2021)
	D B Webber	(resigned 27 June 2022)
	P R Powell
	C Buchan	(resigned 14 February 2022)
	Dr C A Souch
	Dr R A Welford
	Dr R A Parkin
	D E Wilson	(resigned 29 October 2021)
	M L Lewis	(appointed 6 August 2021)
		(resigned 27 June 2022)
	G D Utting	(appointed 24 September 2021)
	P B Pearson	(appointed 5 November 2021)
	A W Fotherby	(appointed 8 July 2022)
	R Scott-Ward	(appointed 8 July 2022)

Page 1

Community Action Nepal

Reference and Administrative Details

Patrons

Bankers

Accountant

Sir C J S Bonington CBE P B Scott L Houlding 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 2022

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 2022.

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.

REFERENCE AND ADMINSTRATIVE DETAILS

A full financial year has passed since the death of the charity’s founder, Doug Scott. In that time CAN has restructured its operational model to adapt to continuing Doug’s legacy in a sustainable and effective manner.

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.

CAN’s main focus has been on its original core purpose of continuing to deliver aid and support to the communities of the rural inaccessible areas of the Nepalese Himalayas. 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. 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.

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 an interest-bearing reserve account. 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 following Brexit 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 and, 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 Nubri and Tsum Valley, North Gorkha.

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 the 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.

Page 3

Community Action Nepal

Trustees' Report for the Year Ended 31 March 2022

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, agriculture and livelihoods 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 providing access to basic health in rural locations. Alongside this CAN has provided education and training to improve agricultural diversity which has a tangible benefit to both health and livelihoods. 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 from 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 have enabled the Charity to support the running of 11 rural health posts and the construction of 2 new health posts. The charity has also supported 5 schools and funded agriculture training and numerous livelihood projects. 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.

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.

Page 4

Community Action Nepal

Trustees' Report for the Year Ended 31 March 2022

RESERVES

The Board of Trustees has established a reserves policy which appropriately reflects the risks to which the Charity is exposed and its obligations. In compliance with such policy, it will review regularly both the sum it wishes to hold in unrestricted reserves and the basis for that figure. The reserves policy considers ongoing fixed costs, excludes variable costs, and does not consider expenditure which is linked to restricted projects and therefore covered by restricted funds. The Board has established a policy for unrestricted funds not committed or expended on core activities, which equates to approximately £310,000. At this level, the Trustees feel that they would be able to continue the current core activities of the Charity in the event of a significant drop in funding for six months. This period would allow the Trustees to consider how the funding would be replaced or the activities changed.

The total funds at 31 March 2022 amounted to £890,650 of which £64,955 was restricted by the donors in their future use and £649,130 has been designated by the Trustees for specific purposes. This leaves a balance of free reserves of £174,681. The Trustees will continue with their efforts to maintain the level of unrestricted funds at a minimum of six months core activity expenditure.

The majority of reserves are held as cash.

Designated funds which total £649,130 are comprised of:

£503,659 designated to cover the costs of the charity's Social Welfare Council agreement (the charity's contract with the Nepal Government) until 2024;

£100,000 designated for a disaster/emergency fund (this can provide circa two months emergency cover in the event of an earthquake, flood or famine);

£45,471 designated for the pump priming of potential new projects (this is the average cost of a new construction project).

PLANS FOR FUTURE PERIODS

The aims and objectives for the future are the maintenance and continuity of health, education, agriculture, livelihood and community development programmes. Careful evaluation of the future project areas will be carried out and focus as stipulated by, and agreed with, the SWC.

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.

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 2022

FUNDS HELD AS CUSTODIAN TRUSTEE

For part of the year the Charity held funds on behalf of other small charities not registered with the Charity Commission of England and Wales as follows:

Kashigaun

The above small charity raises funds in the UK but operate 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 their 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 16 September 2022 and signed on its behalf by:

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

G D Utting 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 2022, which are set out on pages 9 to 24.

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.

......................................... Joanne Thomlinson FCA Dodd & Co Limited Chartered Accountants

FIFTEEN Rosehill Montgomery Way Rosehill Estate CARLISLE CA1 2RW

16 September 2022

Page 8

Community Action Nepal

Statement of Financial Activities (including Income and Expenditure Account ) for the Year Ended 31 March 2022

Note Income and endowments from: Donations and legacies 2 Other trading activities 3 Investments 4 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 £ 278,750 27,054 1,116	Restricted Funds £ 140,202 - -	Total Funds 2022 £ 418,952 27,054 1,116	Total Funds 2021 £ 489,874 21,097 811
	306,920	140,202	447,122	511,782
	12,466 117,063	- 170,751	12,466 287,814	1,765 364,329
	129,529	170,751	300,280	366,094
	177,391 (1,250)	(30,549) 1,250	146,842 -	145,688 -
	176,141 649,554	(29,299) 94,254	146,842 743,808	145,688 598,120
	825,695	64,955	890,650	743,808

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

The notes on pages 12 to 24 form an integral part of these financial statements.

Page 9

Community Action Nepal

Company registration number: 3477884

Balance Sheet as at 31 March 2022

Note Fixed assets Tangible assets 10 Current assets Stocks and work in progress Debtors 11 Cash at bank and in hand Creditors: Amounts falling due within one year 12 Net current assets Net assets The funds of the charity: Restricted funds Unrestricted funds Unrestricted income funds Total charity funds	2022 £ £ 1,884 5,734 86,359 801,503 893,596 (4,830) 888,766 890,650 64,955 825,695 890,650	2021 £ £ 1,371 3,050 59,740 683,352 746,142 (3,705) 742,437 743,808 94,254 649,554 743,808	2021 £ £ 1,371 3,050 59,740 683,352 746,142 (3,705) 742,437 743,808 94,254 649,554 743,808
			743,808
			94,254 649,554
			743,808

For the financial year ended 31 March 2022, 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 16 September 2022 and signed on its behalf by:

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

G D Utting Trustee

The notes on pages 12 to 24 form an integral part of these financial statements.

Page 10

Community Action Nepal

Cash Flow Statement for the Year Ended 31 March 2022

Net cash provided by (used by) operating activities Net income for the period Depreciation charges Increase in stocks Increase in debtors Increase/(decrease) in creditors Net cash provided by (used in) investing activities Purchase of property, plant and equipment Increase in cash	2022 £ 146,842 321 (2,684) (26,619) 1,125 118,985 (834) (834) 118,151	2021 £ 145,688 756 - (24,220) (2,625)
		119,599 -
		-
		119,599

Increase in cash

The notes on pages 12 to 24 form an integral part of these financial statements.

Page 11

Community Action Nepal

Notes to the Financial Statements for the Year Ended 31 March 2022

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 2022

......... 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 administor/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.

Income from Government and other 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.

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.

Fixed assets

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

Page 13

Community Action Nepal

Notes to the Financial Statements for the Year Ended 31 March 2022

......... continued

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.

Pensions

The charity operates a defined contribution pension scheme. Contributions are charged in the statement of financial activities as they become payable in accordance with the rules of the scheme.

Page 14

Community Action Nepal

Notes to the Financial Statements for the Year Ended 31 March 2022

......... 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 2022

......... continued

2 Donations and legacies

Donations and legacies General donations Simon & Lou Brown Foundation Gift Aid tax reclaimed Grants General donations Frank Davies Family Trust Sandoz Family / De Meuron Foundation International Porter Protection Group Porters Progress UK Nepalese Children's Medical Trust Reach Out for Nepal Big Lottery Community Fund CAFOD Green Energy International Coles-Medlock Foundation The Watson Trust	Unrestricted Funds £ 217,451 - 20,799	Restricted Funds £ 45,680 12,500 5,498	Total Funds 2022 £ 263,131 12,500 26,297	Total Funds 2021 £ 295,059 20,000 26,750
	238,250	63,678	301,928	341,809
	13,500 12,000 - - - - - - - - - 15,000	9,800 - 12,500 5,000 524 10,000 8,700 - 20,000 - 10,000 -	23,300 12,000 12,500 5,000 524 10,000 8,700 - 20,000 - 10,000 15,000	19,000 12,000 25,000 - 3,000 10,000 - 34,065 20,000 25,000 - -
	40,500	76,524	117,024	148,065
	278,750	140,202	418,952	489,874

Of the donations and legacies income in 2021, £303,877 related to unrestricted funds and £185,997 related to restricted funds.

3 Other trading activities

Sales of purchased goods Lectures Events income	Unrestricted Funds £ 17,626 - 9,428	Restricted Funds £ - - -	Total Funds 2022 £ 17,626 - 9,428	Total Funds 2021 £ 9,401 780 10,916
	27,054	-	27,054	21,097

All of the fundraising activites income in 2021 related to unrestricted funds.

Page 16

Community Action Nepal

Notes to the Financial Statements for the Year Ended 31 March 2022

......... continued

4 Investments

Interest on cash deposits	Unrestricted Funds £ 1,116	Restricted Funds £ -	Total Funds 2022 £ 1,116	Total Funds 2021 £ 811

All of the investment income in 2021 related to unrestricted funds.

5 Expenditure

Direct costs Amounts paid to Nepal for use in projects Lecture expenses including venue hire Event costs Purchases of goods for resale Support costs Wages and salaries Staff pensions Fees for self employed labour Staff training Light, heat and power Insurance Telephone and fax Website and IT costs Printing, postage and stationery Sundry expenses 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 £ - - 5,148 7,318 12,466 - - - - - - - - - - - - - - - - - - 12,466	Charitable activities £ 215,771 - - - 215,771 46,059 839 750 746 532 403 754 6,278 5,644 1,296 155 759 1,309 5,671 300 227 321 72,043 287,814	Total 2022 £ 215,771 - 5,148 7,318	Total 2021 £ 318,715 1,765 - -
			228,237	320,480
			46,059 839 750 746 532 403 754 6,278 5,644 1,296 155 759 1,309 5,671 300 227 321	- - 31,708 - 1,065 - 2,119 1,044 1,924 1,518 - - 60 4,966 300 154 756
			72,043	45,614
			300,280	366,094

Of the expenditure in 2021, £122,698 related to unrestricted funds and £243,396 related to restricted funds.

Page 17

Community Action Nepal

Notes to the Financial Statements for the Year Ended 31 March 2022

......... continued

6 Trustees' remuneration and expenses

No remuneration was paid to 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 £nil (2021 : £9,925) during the year for providing consultancy services on funding opportunities.

The Charity paid J Maguire £nil (2021 : £4,168) during the year for providing fundraising and communications services.

7 Net income

Net income is stated after charging:

	2022	2021
	£	£
Depreciation of tangible fixed assets	321	756
Accountancy fees	5,671	4,966
Independent examiner's fee	300	300

8 Employees' remuneration

The monthly average number of persons (including senior management) employed by the charity during the year was as follows:

Charitable activities The aggregate payroll costs of these persons were as follows: Wages and salaries Other pension costs	2022 No. 2 2022 £ 46,059 839 46,898	2021 No. -
		2021 £ - -
		-

No employee received emoluments of more than £60,000 during the year (2021 - No. 0).

Although the Charity had no employees during the 2021 year it did use the services of five self employed persons during that year as and when required.

9 Taxation

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

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10 Tangible fixed assets

Cost As at 1 April 2021 Additions As at 31 March 2022 Depreciation As at 1 April 2021 Charge for the year As at 31 March 2022 Net book value As at 31 March 2022 As at 31 March 2021	Fixtures, fittings and equipment £ 20,376 834
	21,210
	19,005 321
	19,326
	1,884
	1,371

11 Debtors

Other debtors including gift aid tax Prepayments and accrued income	2022 £ 86,037 322 86,359	2021 £ 59,740 -
		59,740

12 Creditors: Amounts falling due within one year

Other creditors Accruals and deferred income	2022 £ 31 4,799 4,830	2021 £ - 3,705
		3,705

13 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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14 Pension scheme

Defined contribution pension scheme

The charity operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the charity to the scheme and amounted to £839 (2021 - £nil).

Contributions totalling £31 (2021 - £nil) were payable to the scheme at the end of the period and are included in creditors.

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 one of the charity's patrons, P B Scott, allowed the Charity to use her home as its office and store place. The Charity contributed £532 and £213 towards office heat and light costs and telephone costs respectively (2021 : £1,064 and £514). Commissions of £1,799 were also payable by the Charity to P B Scott for the sale of goods during the year (2021 : £nil). At 31 March 2022 Community Action Nepal owed P B Scott £1,799 (2021 : £nil).

P B Scott, is the director of Community Action Treks Limited. 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 2022 Community Action Treks Limited owed the Charity £4,215 (2021 : £4,215).

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Community Action Nepal

Notes to the Financial Statements for the Year Ended 31 March 2022

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16 Analysis of funds

General Funds Unrestricted income fund Restricted Funds Sherpa museum North Gorkha health posts Samagaun health post Lho and Lihi health posts Kashigaun school Big Lottery Community Fund CAFOD Prok school Chumling health post Ripchet clinic Porter relief fund Covid-19 appeal JTA agricultural worker Healthcare in Chhokang Paro	At 1 April 2021 £ 649,554 25,958 - - - 2,224 12,685 10,000 23,750 - 11,784 6,603 - 1,250 - 94,254 743,808	Incoming resources £ 306,920 6,250 21,598 6,000 6,250 440 - 21,000 21,200 12,500 4,800 5,524 24,640 - 10,000 140,202 447,122	Resources expended £ (129,529) (7,053) (21,598) - (6,250) (2,664) (12,685) (21,000) (29,450) (6,000) (14,784) (12,127) (24,640) (2,500) (10,000) (170,751) (300,280)	Transfers £ (1,250) - - - - - - - - - - - - 1,250 - 1,250 -	At 31 March 2022 £ 825,695
					25,155 - 6,000 - - - 10,000 15,500 6,500 1,800 - - - -
					64,955
					890,650

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Community Action Nepal

Notes to the Financial Statements for the Year Ended 31 March 2022

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Prior period

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 Ghorka 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 expanded £ (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 2022

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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
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
Samagaun health post	To build and fund the running costs of Samagaun health post
Lho and Lihi health posts	To assist with the running costs of Lho and Lihi health posts
Kashigaun school	Umbrella project administered by CAN to build and fund the running costs of a school at Kashigaun
	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
CAFOD	Funding from CAFOD to respond to the food security consequences of 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
Porter relief fund	To support porters and their families during the period in which the tourist trade was 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
Healthcare in Chhokang Paro	To support the delivery of essential healthcare in Chhokang Paro, North Gorkha

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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Notes to the Financial Statements for the Year Ended 31 March 2022

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18 Net assets by fund

Tangible assets Current assets Creditors: Amounts falling due within one year Net assets	Unrestricted Funds £ 1,884 828,641 (4,830) 825,695	Restricted Funds £ - 64,955 - 64,955	Total Funds 2022 £ 1,884 893,596 (4,830) 890,650	Total Funds 2021 £ 1,371 746,142 (3,705)
				743,808

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	Restricted Funds £ - 94,254 - 94,254	Total Funds 2021 £ 1,371 746,142 (3,705) 743,808	Total Funds 2020 £ 2,127 602,323 (6,330)
				598,120

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