## **UNITED MISSION TO NEPAL HOSPITALS’ ENDOWMENT TRUST**
## **REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2021**
**Registered Charity No. 1083226**
## **UNITED MISSION TO NEPAL HOSPITALS’ ENDOWMENT TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2021**
## **CONSTITUTION**
The United Mission to Nepal Hospitals’ Endowment Trust was established by a Declaration of Trust on 20 September 2000 and registered with the Charity Commission on 7 November 2000.
## **TRUSTEES**
The Trustees during the financial year ending 31 December 2021 and up to the date of the signing of this Trustees’ report were the following:
Dr Anthony Cleve Chevassut (Chair) Dr Katrina Butterworth Mr Ian Chadwell Mrs Alison Chevassut Dr Olak Jirel Dr Gary Parkes Dr David Rodgers Mr Timothy Trimble (Treasurer)
## **REGISTERED OFFICE:**
Langtang Berry Lane East Hanney Wantage OX12 0JB
**BANKERS:** CAF Bank Ltd 25 Kings Hill Avenue Kings Hill, West Malling ME19 4JQ **INVESTMENT ADVISORS:** CCLA Senator House 85 Queen Victoria Street London EC4V 4ET St James’s Place Wealth Management plc St James’s Place House 1 Tetbury Road Cirencester GL1 1FP
## **UNITED MISSION TO NEPAL HOSPITALS’ ENDOWMENT TRUST**
**REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2021**
|**INDEX**|**Page**|
|---|---|
|REPORT OF THE TRUSTEES|1 - 4|
|INDEPENDENT EXAMINER’S REPORT|5 - 6|
|STATEMENT OF FINANCIAL ACTIVITIES|7|
|BALANCE SHEET|8|
|NOTES TO THE FINANCIAL STATEMENTS|9 - 11|
## **UNITED MISSION TO NEPAL HOSPITALS’ ENDOWMENT TRUST**
**REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2021**
## **ABOUT THE UNITED MISSION TO NEPAL HOSPITAL ENDOWMENTS TRUST**
The United Mission to Nepal (UMN) first established health work in Nepal in 1954 with a maternity clinic in Bhaktapur and a hospital in Kathmandu was opened a month later. This was to become Shanta Bhawan Hospital, evolving in 1982 into Patan Hospital. 1954 also saw the start of medical work in Tansen and by 1957 a school and a dispensary were established in Amp Pipal. By 1959 a dispensary had been established in Okhaldhunga, from which Okhaldhunga Community Hospital evolved. Other Community Health programmes were also started, and the UMN to this day continues to be a major contributor to health care.
However, the UMN vision was to develop educate and eventually empower local communities to play a much larger part in the general management of its hospitals, and now both Patan Hospital and Amp Pipal Hospital have achieved that independence. The desire to continue the impartial and, where necessary subsidised, care to all who come for help regardless of status, caste, creed or resources is intended to remain integral to their work, whether under the UMN umbrella or under local management.
Nepal has a population of approximately 27 million, and it is estimated that 45% of its people earn less than £1 per day. Nothing akin to our NHS exists in the country, so there is a great need for the funding of subsidised and charitable care. Recent turbulent times in Nepal have added to the increasing requests for assistance.
In 2000 the United Mission to Nepal Hospitals’ Endowment Trust (UMNHET) was set up to support financially the ‘free care for the poor’ Medical Assistance Fund in each of the four hospitals that began under the UMN umbrella. The endowment fund is not separately managed for each hospital but managed by the Trustees for the mutual benefit of each hospital. Funds are allocated by the Trustees for the benefit of each hospital and any gifts received are added to these funds as according to the donor’s wishes.
The endowment is invested with two investment managers who also advise the Trustees on detailed investment decisions. Interest received on the capital that is invested is paid each year to the four hospitals. Interest generated by the capital fund is usually paid to each hospital in proportion to the capital allocated to each hospital. Interest generated by the General fund is distributed each year in full according to the hospitals requirements and needs and may be distributed to other health care providers that have close links with the hospitals. The final decision on distribution is taken by the Trustees following a discussion based upon the needs and requirements expressed to the Trustees by the management of each hospital.
Grants are sent twice a year and are always received with much gratitude.
## **UNITED MISSION TO NEPAL HOSPITALS’ ENDOWMENT TRUST**
## **REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2021**
## **ANNUAL REPORT OF THE TRUSTEES**
## **Background**
This is our nineteenth Annual Report, representing events and progress for the period of 1[st] January 2021 through to 31[st] December 2021.
## **Trustees**
During 2021, the Trustees who served were Dr Cleve Chevassut, Dr Olak Jirel, Dr Gary Parkes, Mr Timothy Trimble, Mrs Alison Chevassut, Dr Katrina Butterworth, Mr Ian Chadwell and Dr David Rodgers. All the Trustees have had, or continue to have, experience working in Nepal, under the auspices of The United Mission to Nepal (UMN).
The Trustees collectively represent many years of service in Nepal and bring a wealth of knowledge and expertise to the running of the Trust. I am extremely grateful to all the Trustees for their hard work and willingness to serve the Trust over this past year.
## **Activities**
The Trustees met for an Extraordinary Meeting on 24[th] May 2021, and for the Annual General Meeting on 25[th] June 2021. Both these meetings were virtual meetings, held via zoom, because of the Covid-19 pandemic and restrictions on movement and meetings. The AGM was attended by seven of our eight Trustees. Dr Olak Jirel, who lives in Nepal, was unable to attend due to the time difference between the UK and Nepal. The meetings provided a good opportunity to discuss the ongoing work of the Trust, receive updated information on our current financial situation, hear news from the hospitals supported by the Trust, and discuss recent news from Nepal, especially with regard to the Covid-19 pandemic.
During 2021, Dr Olak Jirel, continued his medical work in Nepal with the United Mission to Nepal, and Dr David Rodgers continued his role as a United Mission to Nepal Board member, which met for Board Meetings via zoom.
Special thanks go to Tim Trimble, our Treasurer, for his detailed work on our finances, to Alison Chevassut, our Secretary, for writing thank you letters to our donors, and keeping in touch with our hospitals in Nepal, and to Katrina Butterworth for writing our Annual Newsletter. We are also very indebted to Ian Linehan, a friend of UMNHET, who has constructed and managed our website so capably for many years.
1
## **Developments in Nepal**
The Covid-19 pandemic significantly impacted Nepal. The country experienced a first wave in March 2020, and a second wave in mid-April 2021. The Covid-19 vaccination drive that began in January 2021 contributed to a reduction in the fatality rate. WHO stated that Nepal had fully vaccinated 40% of its total population of nearly 31 million against Covid-19 by January 2022. The reported number of deaths due to Covid-19 up until 31[st] December 2021 was 11,594.
Whilst the pandemic has affected the economy and lives of all people in Nepal, it has had its greatest impact on the most vulnerable in Nepal – on livelihoods, food security and nutrition, health, education, and protection. Restrictions on movement and lockdowns have affected all aspects of life, from the ability to earn a living, to attend school, to procure food and medicine, and to access health services and routine vaccinations.
Nepal remains one of the world’s poorest countries and according to The International Monetary Fund, in 2021, Nepal ranked 164[th] out of 195 countries for GDP per capita, with a figure of USD 1,166. Of course, this average figure does not tell the true story for many in the country who live in abject poverty.
The four UMN-founded hospitals continue to serve the people of Nepal, with a special focus on the poor and marginalised. We commend the hard work and dedication of so many staff in these institutions, especially during the Covid-19 pandemic.
The two UMN hospitals, Tansen and Okhaldhunga are now being managed by the United Mission to Nepal Medical and Development Trust (UMNMDT), and these hospitals now have to be registered with respective provincial government. Patan and Amp Pipal Hospitals continue under their own governance structure, which is independent of UMN.
The COVID pandemic created many new challenges for the UMN-founded hospitals, as they sought to continue caring for patients. The lack of patients accessing the hospital in the early days of the pandemic lead to a significant fall in hospital revenue, and there were great concerns about how to pay staff salaries and keep the hospitals running.
As UMNHET Trustees we met for an Extraordinary Meeting on 24[th] May 2021, and the decision was taken to make our usual two annual disbursements as a single disbursement as early as possible, earmarking part of the disbursement for the Medical Assistant Fund (MAF), and part for capital items.
## **Financial Situation**
The Trustees continue to be immensely grateful to our many donors for the gifts given to the Trust. This shows the ongoing commitment of many long-term friends to the work of the Trust. In 2021 the Trust was able to make grants to the four UMN founded hospitals, and allied organisations, of £30,206, being interest and dividends received from investments during the previous year. Since the Trust started making grants in 2005 it has paid out £532,906 from its endowment funds and £40,629 from direct appeals.
2
Gift aid of £1,489 (2020 £4,753) was received during the year.
The results for the year and the state of affairs as at 31 December 2021 are shown on pages 7 and 8 respectively.
## **Investment Policy**
The market value of investments held at 31 December 2021 was £846,667 (2020 £830,064) made up of £555,706 invested with St James’s Place and £290,961 invested with CCLA as shown in note 2 to the accounts.
St James’s Place managed funds are invested in a portfolio consisting about 63% (2020 63%) fixed interest bonds with the balance invested in equities, other investments and cash. COIF Charities Fixed Interest Fund - Income Units are invested in fixed interest securities of which about 38% (2020 38%) are Government Bonds, the balance is invested in non government bonds and cash.
As funds are invested only for income generation the Trustees consider it prudent to value investments at cost. The market values of investments held are disclosed in note 2 to the accounts.
Both investment funds meet the Trustees’ ethical concerns and provide income in preference to capital growth. During 2021 the income from investments was £31,960 (2020 £30,206).
## **Reserves Policy**
Funds invested generate interest and dividends which is paid out in full the following financial year. The Trustees consider no benefit in holding undesignated free reserves.
## **Risk Assessment**
At the AGM the Trustees reviewed an assessment of the risks to which the charity is exposed. The main risks are loss of investment income due to poor results from investment managers and ensuring that interest is used by the beneficiary hospitals for the purpose for which it is given.
## **Future Plans**
The Trustees will continue in 2020 to raise further funds and distribute income received as mandated by the governing document.
## **Responsibilities of the Trustees**
The law applicable to charities in England and Wales requires the Trustees to prepare the annual report and financial statements for each financial year, which give a true and fair view of the state of affairs of the charity as at the balance sheet date and of its incoming resources and application of resources, including its income and expenditure. In preparing these financial statements, the Trustees should follow best practice and:
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- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- ensure that the best accounting practice has 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 Charity will continue in operation.
The Trustees are responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the Trust and enable preparation of the financial statements complying with the Charities Act 2011.
The Trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Further information can be obtained from the website www.umnhet.org.uk
Approved by the Trustees and signed on their behalf by:
Dr Cleve Chevassut 25 June 2022
4
## **UNITED MISSION TO NEPAL HOSPITALS’ ENDOWMENT TRUST**
## **REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2021**
## **Independent Examiner’s report to the trustees of United Mission to Nepal Hospitals’ Endowment Trust.**
I report on the accounts of the Trust for the year ended 31 December 2021, which are set out on the following pages.
## **Respective responsibilities of trustees and examiner**
The charity’s trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) or under Regulation 10(1)(a) to (c) of the Charities Accounts (Scotland) Regulations 2006 (the 2006 Regulations) and that an independent examination is needed. The charity is preparing accrued accounts and I am qualified to undertake the examination by being a qualified member of the Association of Chartered Certified Accountants.
It is my responsibility to:
- examine the accounts under section 145 of the Charities Act 2011 and under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 (the 2005 Act)
- to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act
- to 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 next statement .
## **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 130 of the 2011 Act and section 44(1)(a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations and
to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act and section 44(1)(b) of the 2005 Act and Regulation 8 of the 2006 Accounts Regulations
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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
Signed:
John Hedderley
Chartered Certified Accountant
Grove, Wantage
Date: 25 June 2022
6
## **UNITED MISSION TO NEPAL HOSPITALS’ ENDOWMENT TRUST**
## **Statement of Financial Activities**
## **For the Year Ended 31 December 2021**
|**Income**
Donations
Trusts and foundations
Individual donors
Gift aid on donations
Total Donations
Investment Income
CCLA managed funds
St James’s Place managed funds
Total Investment income
Total income
Grants payable to Beneficiaries
Support costs
Total Expenditure
**Net movement in funds for year**
**Reconciliation of funds**
Total funds brought forward
**Total funds carried forward**|**Hospital**
**Funds**
**General**
**Fund**
**Total**
**2021**
**Hospital**
**Funds**
**General**
**Fund**
**Save Our**
**Hospitals**
**Total**
**2020**
**£**
**£**
**£**
**£**
**£**
**£**
**£**
2,500
-
**2,500**
2,500
-
15,000
**17,500**
10,084
700
**10,784**
18.715
2,100
12,353
**33,168**
-
1,489
**1,489**
-
4,753
-
**4,753**|
|---|---|
||12,584
2,189
**14,773**
21,215
6,853
27,353
**55,421**|
||4,872
3,017
**7,889**
5,754
3,626
-
**9,380**
14,866
9,205
**24,071**
12,774
8,052
-
**20,826**|
||19,738
12,222
**31,960**
18,528
11,678
-
**30,206**|
||32,322
14,411
**46,733**
39,743
18,531
27,353
**85,627**|
||19,738
12,222
**31,960**
18,528
11,678
27,353
**57,559**
80
141
**221**
80
100
-
**180**|
||19,818
12,363
**32,181 **
18,608
11,778
27,353
**57,739**|
||12,504
2,048
**14,552**
21,135
6,753
-
**27,888**
511,290
322,273
**833,563**
490,155
315,520
-
**805,675**|
||523,794
324,321
**848,115**
511,290
322,273
-
**833,563**|
7
## **UNITED MISSION TO NEPAL HOSPITALS’ ENDOWMENT TRUST**
## **Balance Sheet as at 31 December 2021**
|**Notes**
**Current assets**
**Investments at cost**
CCLA managed funds
2
St James’s Place managed funds
2
**Cash at bank**
Current account – CAF Bank
Deposit account – CAF Bank/CCLA
**Debtors**
4th Quarter interest on St James’s Place
4th Quarter interest on CCLA
Gift Aid
**Current Liabilities**
Creditors- less than one year
Hospital funds
4
General funds
4
**Net current assets/Liabilities**
**Fund Balances**
3|**2021**
**£**
**291,446**
**556,671**
**848,117**
**18,984**
**3,038**
**22,022**
**6,475**
**1,972**
**1,489**
**9,936**
**19,738**
**12,222**
**31,960**
**848,115**
**848,115**|2020
£
291,446
531,671|
|---|---|---|
|||823,117
22,745
8,036|
|||30,781
5,374
2,338
2,159|
|||9,871
18,527
11,679|
|||30,206
833,563|
|||833,563|
These financial statements have been prepared in accordance with the Financial Reporting Standard 102 SORP.
The Financial Statements were approved by the Board of Trustees on 25 June 2022 and signed on their behalf by Dr Cleve Chevassut Chair of Trustees;
…………………………………………………………………………………………………………
8
## **UNITED MISSION TO NEPAL HOSPITALS’ ENDOWMENT TRUST**
## **REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2021**
## **Notes to the Accounts**
## **Note 1 - Accounting policies**
## **a) Basis of accounting**
(i) The financial statements have been prepared under the historical cost convention in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice and the Charities Act 2011.
## **b) Incoming Resources**
Grants, donations and conference fees are recognised in full in the Statement of Financial Activities in the year in which they are receivable.
## **c) Resources expended**
All expenditure is accounted for on an accruals basis when there is a legal or constructive obligation to do so.
Support costs are those costs incurred directly in support of expenditure on the objects of the charity and represent the associated costs of finance and general administration in supporting the operational programmes for which the charity is responsible.
Governance costs include the cost of the governance arrangements which relate to the general running of the charity as opposed to the direct management functions inherent in generating funds, service delivery and programme or project work. This includes such items as Independent Examiner’s fees, legal advice for trustees and costs associated with constitutional and statutory requirements.
## **d) Fund accounting**
The Charity maintains various types of fund as follows:
**Hospital funds -** these represent grants and donations which are allocated to specific hospitals based on the wishes of the donor.
**Unrestricted funds -** these represent funds which are expendable at the discretion of the Trustees in the furtherance of the objects of the charity.
9
## **UNITED MISSION TO NEPAL HOSPITALS’ ENDOWMENT TRUST**
## **REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2021**
## **Notes to the Accounts**
|**Note 2**
**Investments**
**2021**
CCLA
St James’s
Total
CCLA
**Investments at cost**
**£**
**£**
**£**
**£**
1 January
291,446
531,671
**823,117**
267,446
Additions
-
25,000
**25,000**
24,000
31 December
291,446
556,671
**848,117**
291,446
**Investments at market value**
**£**
**£**
**£**
**£**
1 January
311,456
518,607
**830,063**
278,026
Added
-
25,000
**25,000**
24,000
Unrealised gains/(loss)
(20,495)
12,099
**(8,396)**
9,430
31 December
290,961
555,706
**846,667**
311,456|**2021**
CCLA
St James’s
Total
CCLA
**£**
**£**
**£**
**£**
291,446
531,671
**823,117**
267,446
-
25,000
**25,000**
24,000|
St James’s
**£**
531,671
-|**2020**
Total
**£**
799,117
24,000
823,117
**£**
**828,395**
**24,000**
**(22,332)**
**830,063**|
|---|---|---|---|
||291,446
556,671
**848,117**
291,446|531,671||
|||**£**
550,369
-
(31,762)||
||290,961
555,706
**846,667**
311,456|518,607||
|**Note 3**
**Fund Balances (Capital)**
**Amp**
**Pipal**
**Okhaldh**
**-unga**
**Tansen**
**Patan**
£
£
£
£
Opening Balances
145,912
102,773
175,408
87,197
Donations received
2,946
2,946
3,746
2,946
Gift Aid received
-
-
-
-
Expenditure- bank charges
20
20
20
20
Closing Balances
148,838
105,699
179,134
90,123
18%
12%
21%
11%
**Summary of Capital Fund balances**
**2021**
**2020**
£
£
Hospital Funds
523,794
511,290
General
324,321
322,273
Total Funds
848,115
833,563||**Total**
**Hospitals**
£
511,290
12,584
-
80
523,794
62%|**General**
**Fund**
£
322,273
700
1,489
141|
||||324,321|
||||38%|
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## **UNITED MISSION TO NEPAL HOSPITALS’ ENDOWMENT TRUST**
## **REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2021 Notes to the Accounts**
**Note 4**
|**Note 4**||||||||
|---|---|---|---|---|---|---|---|
|**Funds payable**|**Amp**
**Pipal**|**Okhaldh**
**-unga**|**Tansen**|**Patan**|**Total**
**Hospitals**|**General**
**Fund**|**Total**|
||£|£|£|£|£|£|£|
|Opening Balances 1 Jan|5,287|3,724|6,356|3,160|18,527|11,678|30,205|
|Grants paid in year|5,287|3,724|6,356|3,160|18,527|11,678|30,205|
|St James’s Place|4,224|3,000|5,084|2,558|14,866|9,205|24,071|
|CCLA|1,384|983|1,665|838|4,872|3,017|7,889|
|Balance payable in 2022|5,608|3,983|6,749|3,396|19,738|12,222|31,960|
|**Summary of funds payable in following year**||||||||
||**2021**|**2020**||||||
||£|£||||||
|Hospital funds|19,738|18,528||||||
|General|12,222|11,678||||||
|Total Funds payable|31,960|30,206||||||
## **Note 5. Related Party Disclosure**
During the year £9,334 was paid to United Mission Hospital, Tansen and £7,764 was paid to Okhaldhunga Community Hospital both projects of United Mission to Nepal of which Dr David Rodgers is a Trustee. United Mission to Nepal works in Nepal under a General agreement and Project agreement with the Social Welfare Council of the Government of Nepal. The Trustees were in full agreement that these transfers were in accordance with the objects of the Trust.
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