Community Action Nepal
(A company limited by guarantee)
Annual Report and Financial Statements
31 March 2025
Company registration number: 3477884 Charity registration number: 1067772
Community Action Nepal
Contents
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' report | 2 |
| Chairman's report | 6 |
| Trustees' responsibilities in relation to the financial statements | 7 |
| Independent examiner's report | 8 |
| Statement of financial activities | 9 |
| Balance sheet | 10 |
| Notes to the financial statements | 11 |
Community Action Nepal
Reference and Administrative Details
| Charity name | 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 | P Braithwaite | |
| P R Powell | ||
| Dr C A Souch | (resigned 20 September 2024) | |
| Dr R A Welford | ||
| Dr R A Parkin | ||
| G D Utting | ||
| A W Fotherby | ||
| R Scott-Ward | ||
| S R Umpleby | ||
| C Powell | (appointed 21 March 2025) | |
| Patrons | Sir C J S Bonington CBE | |
| P B Scott | ||
| L Houlding | ||
| Bankers | Cumberland Building Society | |
| 38 Fisher Street | ||
| CARLISLE | ||
| CA3 8RQ | ||
| Accountant | Dodd & Co Limited | |
| FIFTEEN Rosehill | ||
| Montgomery Way | ||
| Rosehill Estate | ||
| CARLISLE | ||
| CA1 2RW |
Page 1
Community Action Nepal
Trustees' Report for the Year Ended 31 March 2025
Trustees’ Report for Year Ended 31 March 2025
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 2025.
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 as amended by the Charities Act 2022 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
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 Chair 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 concentrated 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 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 2
Community Action Nepal
Trustees' Report for the Year Ended 31 March 2025
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 Doug 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. 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 and the Management Committee that represents the communities within the project areas.
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 2025 to June 2030.
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.
Page 3
Community Action Nepal
Trustees' Report for the Year Ended 31 March 2025
The total funds at 31 March 2025 amounted to £1,126,159 (2024: £1,140,049) of which £155,788 (2024: £132,457) was restricted by the donors in their future use and £776,344 (2024: £776,344) has been designated by the Trustees for specific purposes. This leaves a balance of free reserves of £191,754 (2024: £229,126). 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 £776,344 are comprised of:
£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) (2024: £100,000);
£47,599 designated for the pump priming of potential new projects (this is the average cost of a new construction project) (2024: £47,599).
£628,745 designated to cover the cost of the charity’s 2025 to 2030 Social Welfare Council agreement (the charity’s contract with the Nepal Government) (2024 : £403,016).
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.
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.
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 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.
Page 4
Community Action Nepal
Trustees' Report for the Year Ended 31 March 2025
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 October 2025 and signed on its behalf by:
.........................................
G D Utting Trustee
Page 5
Community Action Nepal
Chairman's Report for the Year Ended 31 March 2025
As Community Action Nepal (CAN) concludes the financial year 2024/2025 we also conclude our 5-year agreement with the Nepal government. I am delighted to report a strong conclusion to the year and completion of our 5 years agreement delivering life changing projects in some of the most rural parts of the Himalayas. Based on the success of our last 5 years we have committed to and agreed another 5 years agreement to continue our great work in Nepal.
In 2025/2026 we will be continuing our support to the rural valleys of Tsum and Nubri in North Gorkha. Our 5-year plan will include the development and strengthening of health care and reporting in the region. We are working hard to capture better data from our health posts to enable us to learn from and improve our service. We can then share this data with the Government to drive improvement throughout rural Nepal. We are developing handover plans to transfer knowledge and infrastructure to the Government over the next 5 years in line with our ethos.
During our March 2025 visit we attended multiple meetings with staff and Government to agree our plans and provide positive feedback to our staff on behalf of our trustees and donors. During this visit we also discussed CAN’s aspiration to find another remote valley to take our successful health model and support another remote community. During 2026 we will be scoping out and carrying out due diligence in finding another valley to continue our great work.
On the back of another successful year, I would like to thank our staff in both the UK and Nepal for their excellent work and professionalism. Our nurses continue to inspire through their dedicated service and positive attitude. I would like to thank our trustees and Patrons for their continued support, expertise and drive.
Last of all a massive thank you to our loyal supporters. Without their support, passion and enthusiasm none of our great work would be achievable. I am looking forward to financial year 2025/26 and continuing our great work improving the lives of those living in the rural mountainous regions of Nepal.
Best regards
Glyn Utting
Chair of Community Action Nepal
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 2025, 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 as amended by the Charities Act 2022 (the 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.
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 Act;
-
follow the procedures laid down in the General Directions given by the Charity Commission under section 145 (5) (b) of the 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 Borradaile ACA Dodd & Co Limited Chartered Accountants 10 October 2025
FIFTEEN Rosehill Montgomery Way Rosehill Estate CARLISLE CA1 2RW
Page 8
Community Action Nepal
Statement of Financial Activities (including Income and Expenditure Account ) for the Year Ended 31 March 2025
| 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 (expenditure)/income before transfers Transfers Transfers between funds Net movements in funds Reconciliation of funds Total funds brought forward Total funds carried forward |
Unrestricted Funds £ 248,271 23,175 27,148 |
Restricted Funds £ 92,576 - - |
Total Funds 2025 £ 340,847 23,175 27,148 |
Total Funds 2024 £ 329,441 22,860 16,310 |
|---|---|---|---|---|
| 298,594 | 92,576 | 391,170 | 368,611 | |
| 8,022 327,793 |
- 69,245 |
8,022 397,038 |
7,367 249,307 |
|
| 335,815 | 69,245 | 405,060 | 256,674 | |
| (37,221) - |
23,331 - |
(13,890) - |
111,937 - |
|
| (37,221) 1,007,592 |
23,331 132,457 |
(13,890) 1,140,049 |
111,937 1,028,112 |
|
| 970,371 | 155,788 | 1,126,159 | 1,140,049 |
All of the Charity's activities derive from continuing operations during the above periods.
The notes on pages 11 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 2025
| 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 |
2025 £ £ 2,273 5,801 25,397 1,102,343 1,133,541 (9,655) 1,123,886 1,126,159 155,788 970,371 1,126,159 |
2024 £ £ 2,122 4,730 35,191 1,106,808 1,146,729 (8,802) 1,137,927 1,140,049 132,457 1,007,592 1,140,049 |
2024 £ £ 2,122 4,730 35,191 1,106,808 1,146,729 (8,802) 1,137,927 1,140,049 132,457 1,007,592 1,140,049 |
|---|---|---|---|
| 1,140,049 | |||
| 132,457 1,007,592 |
|||
| 1,140,049 |
For the financial year ended 31 March 2025, 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 October 2025 and signed on its behalf by:
.........................................
G D Utting Trustee
The notes on pages 11 to 24 form an integral part of these financial statements.
Page 10
Community Action Nepal
Notes to the Financial Statements for the Year Ended 31 March 2025
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.
Designated funds are unrestricted funds set aside at the discretion of the trustees for specific purposes.
Further details of each fund are disclosed in note 16.
Page 11
Community Action Nepal
Notes to the Financial Statements for the Year Ended 31 March 2025
......... 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.
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 grant or 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.
Page 12
Community Action Nepal
Notes to the Financial Statements for the Year Ended 31 March 2025
......... continued
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.
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.
Operating leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Rentals payable under operating leases are charged in the Statement of Financial Activities on a straight line basis over the lease term.
Page 13
Community Action Nepal
Notes to the Financial Statements for the Year Ended 31 March 2025
......... continued
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.
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 14
Community Action Nepal
Notes to the Financial Statements for the Year Ended 31 March 2025
......... continued
2 Donations and legacies
| Donations and legacies Legacies and bequests General donations International Porter Protection Group Simon & Lou Brown Foundation Gift Aid tax reclaimed Grants El Rio Foundation Nepalese Children's Medical Trust Reach Out for Nepal The Watson Trust Other grants Randal Charitable Foundation The Evan Cornish Foundation Clephane Hume Charitable Trust |
Unrestricted Funds £ 15,366 100,935 2,000 - 14,218 |
Restricted Funds £ - 53,783 - 12,500 7,750 |
Total Funds 2025 £ 15,366 154,718 2,000 12,500 21,968 |
Total Funds 2024 £ 5,634 203,418 - 12,499 35,377 |
|---|---|---|---|---|
| 113,976 | 92,576 | 206,552 | 256,928 | |
| 10,752 10,543 - 100,000 13,000 - - - |
- - - - - - - - |
10,752 10,543 - 100,000 13,000 - - - |
12,000 - 6,500 - 31,800 12,213 5,000 5,000 |
|
| 134,295 | - | 134,295 | 72,513 | |
| 248,271 | 92,576 | 340,847 | 329,441 |
Of the donations and legacies income in 2024, £157,470 related to unrestricted funds and £171,971 related to restricted funds.
3 Other trading activities
| Sales of purchased goods Events income |
Unrestricted Funds £ 6,591 16,584 |
Restricted Funds £ - - |
Total Funds 2025 £ 6,591 16,584 |
Total Funds 2024 £ 6,919 15,941 |
|---|---|---|---|---|
| 23,175 | - | 23,175 | 22,860 |
All of the fundraising activites income in 2024 related to unrestricted funds.
Page 15
Community Action Nepal
Notes to the Financial Statements for the Year Ended 31 March 2025
......... continued
4 Investments
| Interest on cash deposits | Unrestricted Funds £ 27,148 |
Restricted Funds £ - |
Total Funds 2025 £ 27,148 |
Total Funds 2024 £ 16,310 |
|---|---|---|---|---|
All of the investment income in 2024 related to unrestricted funds.
Page 16
Community Action Nepal
Notes to the Financial Statements for the Year Ended 31 March 2025
......... continued
5 Expenditure
| Direct costs Amounts paid to Nepal for use in projects Helicopters, hotels and other travel expenses to visit projects in Nepal Event costs Purchases of goods for resale Support costs Wages and salaries Staff NIC (Employers) Staff pensions Staff health plan Fees for self employed labour Staff training Staff travel costs Rent 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 Accountancy fees Independent examiner's fee Bank charges Depreciation of fixtures, fittings and equipment |
Fundraising £ - - 5,563 2,459 8,022 - - - - - - - - - - - - - - - - - - - - - 8,022 |
Charitable activities £ 242,883 15,152 - - |
Total 2025 £ 242,883 15,152 5,563 2,459 |
Total 2024 £ 107,322 12,362 4,318 3,049 |
|---|---|---|---|---|
| 258,035 | 266,057 | 127,051 | ||
| 101,006 4,981 2,372 270 - 4,200 4,264 288 853 1,070 850 4,692 4,673 2,004 849 58 4,860 450 304 959 |
101,006 4,981 2,372 270 - 4,200 4,264 288 853 1,070 850 4,692 4,673 2,004 849 58 4,860 450 304 959 |
88,660 3,510 2,011 - 760 1,095 6,363 - 1,064 959 868 3,265 8,677 3,652 651 1,009 5,638 425 206 810 |
||
| 139,003 | 139,003 | 129,623 | ||
| 397,038 | 405,060 | 256,674 |
Of the expenditure in 2024, £140,384 related to unrestricted funds and £116,290 related to restricted funds.
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.
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Community Action Nepal
Notes to the Financial Statements for the Year Ended 31 March 2025
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7 Net (expenditure)/income
Net (expenditure)/income is stated after charging:
| 2025 | 2024 | |
|---|---|---|
| £ | £ | |
| Depreciation of tangible fixed assets | 959 | 810 |
| Accountancy fees | 4,860 | 5,638 |
| Independent examiner's fee | 450 | 425 |
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 Social security Other pension costs |
2025 No. 3 2025 £ 101,006 4,981 2,372 108,359 |
2024 No. 3 |
|---|---|---|
| 2024 £ 88,660 3,510 2,011 |
||
| 94,181 |
9 Taxation
The company is a registered charity and is therefore exempt from taxation on income and gains.
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Community Action Nepal
Notes to the Financial Statements for the Year Ended 31 March 2025
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10 Tangible fixed assets
| Cost As at 1 April 2024 Additions As at 31 March 2025 Depreciation As at 1 April 2024 Charge for the year As at 31 March 2025 Net book value As at 31 March 2025 As at 31 March 2024 |
Fixtures, fittings and equipment £ 22,694 1,110 23,804 20,572 959 21,531 2,273 2,122 |
|---|---|
11 Debtors
| Other debtors including gift aid tax Prepayments and accrued income |
2025 £ 23,954 1,443 25,397 |
2024 £ 34,296 895 |
|---|---|---|
| 35,191 |
12 Creditors: Amounts falling due within one year
| 2025 £ Other creditors 84 Accruals and deferred income 9,571 9,655 Creditors amounts falling due within one year includes deferred income: 2025 £ As at 1 April 2024 5,000 Amount deferred in the year - As at 31 March 2025 5,000 |
2024 £ 49 8,753 |
|---|---|
| 8,802 | |
| 2024 £ - 5,000 |
|
| 5,000 |
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Community Action Nepal
Notes to the Financial Statements for the Year Ended 31 March 2025
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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.
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 £2,372 (2024 - £2,011).
Contributions totalling £84 (2024 - £49) 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 £1,064 and £62 towards office heat and light costs and telephone costs respectively (2024 : £1,064 and £680). At 31 March 2025 Community Action Nepal owed P B Scott £nil (2024 : £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 2025 Community Action Treks Limited owed the Charity £4,215 (2024 : £4,215).
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Community Action Nepal
Notes to the Financial Statements for the Year Ended 31 March 2025
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16 Analysis of funds
| Designated Funds Social Welfare Council agreement costs up to 2025 Disaster / emergency fund Potential new projects Social Welfare Council agreement costs for 2025 to 2029 General Funds Unrestricted income fund Restricted Funds Sherpa museum North Gorkha health posts Prok health post Samagaun health post Bihi health post Kashigaun school Chumling health post Livelihoods and agriculture Education Tsum Nubri blood testing machine Lihi health post Philim health post maternity refurbishment |
At 1 April 2024 £ 225,729 100,000 47,599 403,016 776,344 231,248 50,155 10,000 15,000 7,500 - 200 6,249 4,090 2,513 500 31,250 5,000 132,457 1,140,049 |
Incoming resources £ - - - - - 298,594 - 26,043 - 7,500 12,213 480 12,500 2,590 - - 31,250 - 92,576 391,170 |
Resources expended £ - - - - - (335,815) - (18,543) (12,213) (6,300) (9,580) - (10,416) (4,180) (2,513) (500) - (5,000) (69,245) (405,060) |
Transfers £ (225,729) - - 225,729 - - - - - - - - - - - - - - - - |
At 31 March 2025 £ - 100,000 47,599 628,745 |
|---|---|---|---|---|---|
| 776,344 | |||||
| 194,027 | |||||
| 50,155 17,500 2,787 8,700 2,633 680 8,333 2,500 - - 62,500 - |
|||||
| 155,788 | |||||
| 1,126,159 |
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Community Action Nepal
Notes to the Financial Statements for the Year Ended 31 March 2025
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| Prior period Designated Funds Social Welfare Council agreement costs up to 2025 Disaster / emergency fund Potential new projects Social Welfare Council agreement costs for 2025 to 2029 General Funds Unrestricted income fund Restricted Funds Sherpa museum North Gorkha health posts Prok health post Samagaun health post Kashigaun school Chumling health post Tsum Nubri health post Nile health post Manakamana Deaf School Livelihoods and agriculture Education Tsum Nubri blood testing machine Lihi health post Health project for children aged 0 to 14 Philim health post maternity refurbishment Independent Living Centre Kathmandu |
At 1 April 2023 £ 547,450 100,000 47,599 - 695,049 265,458 25,155 22,500 - 7,500 - - 11,190 - 760 500 - - - - - - 67,605 1,028,112 |
Incoming resources £ - - - - - - 196,640 25,000 29,513 27,500 7,500 4,920 12,499 - 3,000 - 6,500 8,000 500 31,250 10,000 5,000 789 171,971 368,611 |
Resources expended £ - - - - - (140,384) - (42,013) (12,500) (7,500) (12,810) (6,250) (11,190) (3,000) (1,841) (2,910) (5,487) - - (10,000) - (789) (116,290) (256,674) |
Transfers £ (321,721) 403,016 81,295 (90,466) - - - - 8,090 - - - 1,081 - - - - - - - 9,171 - |
At 31 March 2024 £ 225,729 100,000 47,599 403,016 |
|---|---|---|---|---|---|
| 776,344 | |||||
| 231,248 | |||||
| 50,155 10,000 15,000 7,500 200 6,249 - - - 4,090 2,513 500 31,250 - 5,000 - |
|||||
| 132,457 | |||||
| 1,140,049 |
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Community Action Nepal
Notes to the Financial Statements for the Year Ended 31 March 2025
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The designated funds were created for the following purposes:
Designated fund Purpose To cover the costs of the charity's Social Welfare Social Welfare Council agreement costs up to 2025 Council agreement (the charity's contract with the Nepal Government) until 2025 To provide circa two months of emergency cover in Disaster / emergency fund the event of an earthquake, flood or famine Funds to pump prime potential new projects (this is Potential new projects the average cost of a new construction project) To cover the costs of the charity's Social Welfare Social Welfare Council agreement costs for 2025 Council agreement (the charity's contract with the to 2029 Nepal Government) for the years of 2025 to 2029
The restricted funds were created for the following projects:
| Restricted fund | Project |
|---|---|
| Sherpa museum | To build a Sherpa heritage home museum and photographic gallery |
| North Gorkha health posts | To support health posts and provide healthcare in North Gorkha |
| Prok health post | To fund the running costs of Prok health post |
| Samagaun health post | To build and fund the running costs of Samagaun health post |
| Bihi health post | To fund the running costs of Bihi health post |
| Kashigaun school | Umbrella project administered by CAN to build and fund the running costs of a school at Kashigaun |
| Chumling health post | To build and fund the running costs of Chumling health post |
| Tsum Nubri health post | To assist with the running costs of the health post at Tsum Nubri |
| Nile health post | To assist with the running costs of the health post at Nile |
| Manakamana Deaf School | To help fund a teacher's salary for one year |
| Livelihoods and agriculture | To assist with the funding of general livelihoods and agriculture programmes |
| Education | To assist with the funding of general education |
| programmes | |
| Tsum Nubri blood testing machine | To fund the purchase of a blood testing machine for Tsum Nubri health post |
| Lihi health post | To rebuild Lihi health post |
| Health project for children aged 0 to 14 | To provide healthcare and schooling for children aged from 0 to 14 |
| Philim health post maternity refurbishment | To refurbishment the maternity provisions at Philim health post |
| Independent Living Centre Kathmandu | Independent fund administered by CAN to support the Independent Living Centre in Kathmandu |
17 Transfers
During the previous year transfers were made from the general fund to two restricted funds (see note 16). The monies transferred were the charity's contribution towards the restricted fund projects to meet the shortfall in restricted funding.
Transfers are made between general funds and designated funds in order to reflect changes in the value of designated funds that the trustees decide need to be held at each year end.
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Community Action Nepal
Notes to the Financial Statements for the Year Ended 31 March 2025
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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 £ 2,273 977,753 (9,655) 970,371 Unrestricted Funds £ 2,122 1,014,272 (8,802) 1,007,592 |
Restricted Funds £ - 155,788 - 155,788 Restricted Funds £ - 132,457 - 132,457 |
Total Funds 2025 £ 2,273 1,133,541 (9,655) 1,126,159 Total Funds 2024 £ 2,122 1,146,729 (8,802) 1,140,049 |
Total Funds 2024 £ 2,122 1,146,729 (8,802) 1,140,049 Total Funds 2023 £ 1,448 1,029,964 (3,300) |
||||
|---|---|---|---|---|---|---|---|---|
| 1,028,112 |
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