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2025-09-30-accounts

Registered number: 04484077 Charity number: 1093548

THE KAREN HILL TRIBES TRUST

(A company limited by guarantee)

UNAUDITED

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

THE KAREN HILL TRIBES TRUST (A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the Company, its Trustees and advisers 1
Chairman's statement 2
Trustees' report 3 - 12
Trustees' responsibilities statement 13
Independent examiner's report 14 - 15
Statement of financial activities 16
Balance sheet 17
Notes to the financial statements 18 - 30

THE KAREN HILL TRIBES TRUST

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 30 SEPTEMBER 2025

Trustees B Wiggan (Resigned 17 November 2024)
J D Ballantine
R Ellis
C Shampine
J Heelham
J Delaney
D Shurman
H R Robson
M V Jenkins (resigned 20 March 2026)
E W Holroyd Pearce
S Mackinson (appointed 27 June 2025)
Company registered
number 04484077
Charity registered
number 1093548
Registered office Tower House Business Centre
Fishergate
York
YO104UA
Independent Examiner Susan Seaman, BA, FCA, CIOT
AAB Audit & Accountancy Limited
Gresham House
5-7 St Pauls Street
Leeds
LS1 2JG

Page 1

THE KAREN HILL TRIBES TRUST

(A company limited by guarantee)

CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2025

The chairman presents his statement for the year.

The Karen Hill Tribes Trust (KHT) continued to support the Karen communities of Northern Thailand during the year 2024/25. The organisation has continued to reach previously unserved areas, ensuring a wider outreach and impact across the Karen communities.

Thanks to the generous support of a number of donors, we were able to support over 2,000 Karen with water and sanitation facilities, which included water filters to ensure not only a good quantity of water, but also quality. We helped over 1,200 Karen villagers with flood resistant irrigation systems, supporting their ability to grow crops benefiting their families throughout the year. The Trust also continued to support a large number of children, students and teachers in our access to education projects, through school transportation, meals and scholarships. They were also supported with health interventions, through deworming medication and clean water filters.

Following the devastating flooding and landslides in the previous year which affected two Karen villages, KHT were able to continue support, to ensure that there was no adverse impact on health and livelihoods for these communities. KHT continues to support and improve the resilience of such communities through monitoring and learning from all of our interventions.

This has all been undertaken through the work of our committed staff, both at KHT and our Thai partner organisation KHTF. Naturally this can only take place thanks to the support of our generous donors. This support is becoming more and more vital in what is an increasingly volatile funding environment, and so we thank each and every donor for their commitment in improving Karen lives through enhanced community health, securing sustainable livelihoods and an increased access to education. KHT continues to make great strides, and we feel optimistic and hopeful in our plans for the future.

Chair of Trustees Date:[11 June 2026 ]

Page 2

THE KAREN HILL TRIBES TRUST

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2025

The Karen Hill Tribes Trust (KHT) is a community-led organisation that has been working with marginalised ThaiKaren communities in Northern Thailand for the past three decades. The Karen are one of the largest ethnic minority groups in Thailand, with most communities residing in low resource, rural and mountainous areas of Northern Thailand. By taking a holistic approach to the complex socio-economic issues at hand, KHT aims to achieve sustainable change by empowering communities to improve their own lives.

OUR VISION

A secure future for the Karen communities of Northern Thailand.

OUR MISSION

To partner with Karen communities to improve their health, livelihoods, and access to education.

OUR GOALS

To enhance community health by improving sanitation, hygiene, and access to safe water. To secure sustainable livelihoods through increased food security and income generation. To increase access to education for children and young adults to improve their opportunities.

OUR APPROACH

KHT’s approach begins and ends with the Karen People of Northern Thailand. As one of the few organisations operating across the Mae Hong Son Province, KHT works in a holistic and sustainable manner to improve the lives of marginalised indigenous Thai-Karen communities.

KHT works in three main areas: Community Health, Sustainable Livelihoods and Access to Education. As such, our projects support immediate, short term and long-term needs of the Karen, and we work with local communities with a key priority being their dignity and betterment.

This unique approach is based on the expressed needs of target communities and involves their local knowledge in all stages of our projects, including design, implementation, maintenance, and evaluation. Projects are focused on promoting self-reliance leading to improved well-being, whilst helping Karen communities retain their unique identity and culture. Not only does this approach guarantee projects have a positive impact, but also supports community ownership and long-term sustainability.

KHT’s Impact to Date :

The charity has transformed health and well-being for 51,630 people through providing cleaner drinking water, improved sanitation facilities and hygiene education.

Allowed 21,020 farmers to secure agriculture as a sustainable livelihood through the construction of floodresistant irrigation systems

Increased access to education for over 15,000 children and young adults through the provision of school meals, transport and accommodation, and higher education scholarships.

Key Achievements in 2024-202 5

Access to Education

Page 3

THE KAREN HILL TRIBES TRUST

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

Securing Livelihoods

Improving Community Health

ACHIEVEMENTS AND PERFORMANCE

In the last 12 months, KHT has supported upwards of 5,086 Karen people in Northern Thailand through its charitable activities. The charity also completed its ‘Emergency Response’ to the climate disasters in August 2024, by installing new Water Systems in the two villages impacted by flooding and landslides. The charity continues to develop its governance and practices, as well as improving its relationship with its donors and a greater involvement of the Board of Trustees in fundraising and operations. The recruitment of a new Fundraising Manager and Monitoring and Evaluation Officer has also meant progress on finding income and networks, and on improving programmes and impact measuring.

KHT has also faced its own challenges in a shrinking and more competitive funding climate as well as coping with the impact of the weather and accessibility of villages in Mae Hong Son.

KHT focused on working in smaller and more remote villages that had faced significant deprivation, however this added new logistical and cost challenges to our constructions.

Below is a summary of our main charitable achievements and activities in the past 12 months:

Transforming Community Health Through Water, Sanitation and Hygiene

Water scarcity and contamination remain a concern for many Karen villages across Mae Hong Son. Environmental factors, the topography of the landscape and the lack of infrastructure have made it difficult for people to access enough clean water across all seasons.

Protracted and heavy rainy seasons continue to cause havoc in the province whilst dry season brings water scarcity that impacts health and livelihoods. The risk of becoming ill from typhoid, dysentery or other parasitic infections, leading to symptoms such as diarrhoea, remains a concern for Karen villagers, especially the very young and elderly. Water sources in the region are often found to be unsafe. A 2020 study by Sudsandee et al. found that many unprotected water sources used by hilltribes were contaminated by faeces and harmful bacteria. There is also growing concern of chemical contamination as people use chemical fertilisers that may seep into water sources that are below farmland.

Water poverty affects the long term and short term health, livelihoods and development of communities. KHT’s water and sanitation projects aim to address this lack of access for the Karen and bring cleaner water and sanitation facilities to forgotten and marginalised villages. Our team also provides hygiene education and works closely with the communities to set up Water Committees to maintain systems and ensure there is community buy-in and empowerment. KHT also aims to provide First Aid kits to villages to ensure they have certain supplies ready for emergencies.

To ensure the efficacy of our work, KHT maintains an ongoing Monitoring and Evaluation process. This includes collecting data such as at the baseline and endline, as well as water quality testing and quality control checks on water systems. Overall, KHT’s systems are performing well with water tests concluding no presence of E. Coli or other bacteriological contamination and positive feedback from villagers.

Page 4

THE KAREN HILL TRIBES TRUST

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

In 2024-2025, KHT:

Our Health Programme impacted the following UN Sustainable Development Goals:

Case Study: The Value of Water in Ban Mae La Ka Tai

Mr Pongthep is from the village of Ban Mae La Ka Tai and his village was impacted by a devastating landslide in August 2024.

“Life used to be very difficult in the village. In the past, there was not enough water for bathing, cooking, or even drinking. People had to collect water from far away sources, and the water was not clean. Some villagers didn’t even have toilets and had to go into the forest when they needed to use the bathroom. KHT helped us by building a water system and latrines, but then on August 12[th ] 2024, there was heavy rainfall which caused flash floods and landslides.

The water system in our village was destroyed, and many villagers’ houses were swept away by the flood and landslides. During that time, finding clean water became very difficult for everyone. Since then, villagers have felt scared and anxious every time it rains. Whenever it rains, they often run out of their homes in fear.

I feel very happy that our village has received support from KHT again. I am truly thankful on behalf of all the villagers. Now, the people in our village have access to clean drinking water, safe and hygienic toilets, and a better quality of life. Your help after the landslide also made us feel relieved and we did not have to worry about food and necessities.

The new water system means we have enough clean water for drinking and enough water for all our other needs. With improved hygiene, people get sick less often, and the risk of disease is reduced because the water is clean and filtered through a proper water filtration system.

Our village is very isolated and I hope in the future we will have better roads and phone signal. My mother passed away due to an injury caused in the landslide and we were unable to call for help or get her to a hospital. Living in a remote village is not easy and we often do not get much help or concern from outside. KHT has ensured we don’t feel ignored and we believe our quality of life will surely improve thanks to have clean water.”

KHT supported the people of Ban Mae La Ka Tai with a water system that was destroyed in the landslide in 2024. We pledged to continue to support them in the emergency by providing immediate relief and then also rebuilding their water system to ensure the villagers could access clean water as they relocated to new sites around the village. The new Water System was completed in April 2025.

Page 5

THE KAREN HILL TRIBES TRUST

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

Securing Sustainable Livelihoods Through Flood Resistant Irrigation Systems

Thailand has made impressive strides in reducing poverty, however rural poverty and the gap between the rich and poor remains stark. More than 2.3 million people remain living under the $2.15 per day poverty line. Income inequality leads to other forms of lost opportunities, poor health and generational disadvantage.

The Karen remain an impoverished sub-section of Thai society, and Mae Hong Son has a 34% poverty rate compared to the national average of 11%. Current and exact data on household incomes is difficult to find, however rural households are often earning only 68% of what urban households can earn.

Subsistence farming, animal breeding and casual labour are the main ways the Karen survive and earn. Mae Hong Son is not only a harsh physical environment, but it is also impacted by climate change which can cause flooding, droughts and landslides.

KHT’s research continues to show that an average of 40% of people in villages have been impacted by flooding and up 50% of people report not being able to produce enough rice to meet their dietary needs.

KHT’s Flood Resistant Irrigation Systems (FRIS) remain a much demanded, durable, and appropriate solution for Karen farmers. The FRIS ensures that water is directed safely to farmland, so it can be used all year-round. As shown in our 2020-2021 Livelihoods Evaluation, the FRIS improved use of farmland, household incomes and reduced food insecurity. Our more recent data continues to demonstrate this positive impact and we have seen an average 143% increase in annual incomes, days in hunger falling to 0 and increased yields of rice and crops. Our data also shows that villagers can spend more on food, pointing to greater flexibility and choice in their diets as well as more disposable income to use for other needs.

Previous FRIS that have been constructed have lasted over 15 years and are still functioning well. KHT have built 117 of these across Mae Hong Son to date.

In 2024-2025, KHT:

Access to Education for Marginalised Karen Children and Youth

Education is greatly valued by the Karen as they see it as a way out of poverty and disadvantage. Although the Karen are farmers and greatly value their connection to the land, they also recognise the limits and difficulties of this livelihood and wish for more opportunities for their children.

KHT continued providing Karen children with safe transport to school, school meals for dormitories and scholarships for higher education in this financial year.

There is a lack of data on access to education for Karen children, however as they tend to be from poorer communities, they are also less likely to complete upper secondary school and therefore move into higher education. The remoteness of villages means many children cannot safely travel to school, and sickness and poverty also hinder their attendance. KHT has also noted the relationship between health, incomes and access to education.

Page 6

THE KAREN HILL TRIBES TRUST

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

In this financial year, KHT:

Our work supports the following UN Sustainable Development Goals:

Structure, Governance and Management

The trustees, who are also the directors for the purposes of company law, present their report and the unaudited financial statements of the Charity for the year ended 30 September 2025

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Recruitment & appointment of new trustees

Up to 12 trustees are appointed to the board on a three-year rotational basis. As of September 2025, there were 10 trustees on the board. Trustees are recruited by the Board of Trustees based on nominations from existing trustees. The Board of Trustees seeks to ensure a mix of skills and diversity and selects each trustee according to their skills or interest.

Induction and training of new trustees

Before being formally appointed, all trustees are provided with appropriate information to ensure that they have a good understanding of the roles and responsibilities of a trustee, the charity itself and its target beneficiaries. This includes, but is not limited to, the Essential Trustee Guide from the Charity Commission, the Charity Commission’s webpages on “Public Benefit”, and the Charity’s governing document, strategic plan, recent annual reports, M&E/impact reports, meeting minutes, and Board Basics & Becoming a Trustee Policy document.

Organisational structure

The Board of Trustees are collectively responsible for ensuring that the Charity is effectively and responsibly governed and that it delivers its charitable objectives for the public benefit. All trustees give their time freely and do not receive remuneration or other benefits for their role. KHT has a trustee indemnity insurance policy in place that covers the Trustees and Charity up to £250,000.

The Trustees, together with the Director, meet three times a year to discuss and determine strategic, financial, and operational requirements, with the annual general meeting (AGM) being held in February each year. Following a full review of the Board of Trustees by the Chair in 2023, 3 new trustee sub-committees were introduced to support KHT staff in the key areas of Governance and Risk, Programmes, and Fundraising. These sub-committees also involve some additional external expert support, for example via a Professional Advisory

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THE KAREN HILL TRIBES TRUST (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

Board for Programmes, and fundraising mentorship. The impact of these committees has been to provide more support to the Director and improve governance.

Summereen Khan was appointed as Director in July 2022 and has been working with the Board of Trustees and staff to lead daily operations, ensure legal requirements, and the charitable objects of KHT are met.

The Director reports to the Board of Trustees in the UK and is responsible for ensuring that the charity achieves its mission through key performance indicators agreed by the Trustees.

All of the charity’s other employees and volunteers report directly to the Director. KHT delivers its charitable objectives in Northern Thailand in partnership with a Thai registered foundation, the Foundation for Karen Hilltribes in Thailand (KHTF). Collectively, the Charity’s team is based across locations in the UK and Khun Yuam, Thailand. In the UK, the Charity’s team includes the Director, Fundraising Manager, Finance Administrator. Although York is KHT’s registered office address for postal services, the Charity does not operate a physical office and all UK employees work remotely. Together, the main responsibility of the UK charity is to raise funds, maintain robust financial systems, distribute communications, provide oversight and management on all charitable activities and work with the UK-based Board of Trustees to ensure good governance.

In Thailand, KHTF maintains a small office in Khun Yuam, which coordinates the implementation of all the charity’s projects. Nine Thai-Karen staff are based in this office. The Thai-Karen staff lead all project activities and Thai administration.

The Director has regularly travelled to Thailand to support KHT’s operations this year. Direct visits and time spent in Mae Hong Son is vital to ensure projects are performing as needed and important for ongoing fundraising efforts. The Director’s visits are also part of supporting the development of the Thai-Karen team and the implementation and evaluation of the charity’s projects through their expertise and technical skills. Oversight and ensuring better reporting for trustees and donors and is also an important benefit to extended visits to Mae Hong Son. KHT extends invites to its donors to Mae Hong Son and one key donor was able to visit projects in September 2025 to meet with our local team and support aid distribution.

Related parties

The Foundation for Karen Hilltribes in Thailand (KHTF) was established under Thai law in Bangkok by representatives of KHT in December 2002 (Registered in Thailand by Permit 242/2525). KHTF has its own Board of Trustees and employees and works in partnership with KHT according to a mutually agreed Memorandum of Understanding (MoU) which defines the relationship between the two entities. Accounts for KHTF are registered and submitted under Thai law and are incorporated into KHT’s financial statements.

Although it is a separate legal entity, KHTF has identical aims to KHT, and the two entities work in close partnership towards a common vision and mission. To achieve these shared goals, KHT organises operations and fundraising from the UK, where its financial centre is based, whilst KHTF acts as the implementing arm that delivers activities.

Risk management

The Board of Trustees and Director of KHT believe that sound risk management is integral to both good management and good governance practice, and ultimately to the sustainability and success of the charity. Risk management is therefore an integral part of the charity’s decision-making process and is incorporated within all strategic and operational planning. KHT manages its exposure to risk through a robust risk management framework, which ensures the charity can identify, assess and respond to risks that it may face when conducting activities.

The framework is based on guidance published by the Charity Commission in “Charities and risk management (CC26)” and focuses on assessing six key areas of risk: Governance, Operational, Financial, External, Compliance (law or regulation), and Safeguarding - safeguarding was recently highlighted as its own category of risk to ensure KHT is upholding the best possible safeguarding standards across the Charity. Although a culture of effective risk management is promoted at all levels of the charity, the implementation and adherence to the risk framework is overseen by the Director and Board of Trustees. The Board of Trustees Risk Management

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THE KAREN HILL TRIBES TRUST

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

Sub-Committee holds risk management meetings three times a year to review and update the risk management framework. Any risks identified as major or extreme are then reported to the full Board of Trustees at Trustees’ meetings for discussion before appropriate action is then taken to reduce the risk.

KHT Organisational Strategy 2023-2028 :

In 2023, KHT approved a 5-year strategy to take over from the interim strategy implemented in 2022. This strategy was developed by the new Director in collaboration with the trustees and the aim to is review the key indicators annually and ensure the charity is on track for its larger goals. The key goals are below and will be monitored and evaluated based on measurable indicators.

  1. KHT has a defined and efficient governance and organisational culture

  2. KHT improves its administrative and operational practices including data, software, and HR

  3. KHT’s projects demonstrate efficacy and sustainability

  4. KHT’s fundraising stream is consistent, consolidated, and diverse

Objectives and Activities

History

KHT was first registered as a charity in 1989 to address the lack of clean water in Karen villages, under the name Mae Phon Karen Hill Tribes Trust (Charity number 800796). The charity was formed through a partnership with current Karen Manager Wichien Bunrachaisavan (Salahae) and a former British diplomat working in Thailand. By working with Karen communities, cleaner water systems were designed and put in place to provide a source of life-changing access to cleaner water. In response to the expressed needs of the Karen, the work of KHT has now expanded into the areas of livelihoods and education with the aim to support the Karen in building a more sustainable future. Over time, KHT continues to adapt and improve its programmes and has expanded its community health programme into supporting improvements in sanitation and hygiene, in addition to its traditional focus on cleaner water. To aid this mission, a strong link with the UK was formed. This has resulted in over 400 volunteers travelling to Thailand to help construct cleaner water systems and teach English in Karen schools. In 1999, a fundraising office was opened in York and the charity was re-registered under the name The Karen Hill Tribes Trust in 2002 by Penelope Worsley, the mother of a former volunteer. After over 30 years Salahae continues to lead the work in Thailand, supported by a team of nine Karen staff who fully involve the local community to ensure projects promote self-help and sustainability. To date, over £6 million has been raised for projects which have helped improve the lives of tens of thousands of Karen people living in Northern Thailand.

Charity Objectives

KHT was formally established in 2002 to benefit the Karen people of Northern Thailand. In the financial year ending 30th September 2025 the Board of Trustees have been able to continue working towards achieving its objectives.

Public benefit

All the Charity’s aims, activities and achievements in the year ending 30th September 2025 are set out in this report and have been undertaken to further KHT’s charitable purposes for the public benefit. The Board of Trustees confirm that they have complied with the duty under Section 4 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission, and that they have referred to this guidance and the Charity Commission general guidance on public benefit when reviewing the Charity’s aims, objects and in deciding what activities the Charity should undertake. KHT can also confirm that it has policies and procedures in place to protect people involved with the Charity, including complaints handling, conflicts of interest, risk management, safeguarding vulnerable beneficiaries, and volunteer management policies. In the financial year ending 30th September 2025, no safeguarding concerns were reported to KHT or its partner foundation.

Page 9

THE KAREN HILL TRIBES TRUST

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

Fundraising Activities

The majority of KHT’s funding is derived from grants made by trusts and foundations. KHT works with the Myriad USA Platform, as well as CAF to ensure we can receive funding from the US and from Europe. In addition to this, KHT has several loyal individual donors that support our projects through unrestricted donations.

The Director and Fundraising Manager work to find new avenues of funding, both from institutions and individuals and in 2024-2025, KHT was able to secure grants from 3 new grant giving institutions, as well as continuing to strengthen its relationship with current and past donors.

In 2024-2025, KHT sent out calls to donate via its Christmas and Easter Newsletters, as well as the monthly online newsletter. Our ongoing and regular campaigning raised more than £24,000 in the year.

Volunteers

In the past 12 months, KHT has been able to welcome a group of 21 volunteers to support our July water system construction project. KHT also recruited a long term volunteer in the UK to support social media and communications.

KHT utilised social media and previous links with schools to help recruit volunteers. We hope to continue increasing volunteers in the coming year.

KHT aims to welcome both short-term teaching and water project volunteers to Thailand each year. Teaching volunteers spend 3 months teaching English in local schools, whilst water volunteers support the construction of water systems in remote Karen villages. KHT is grateful to its volunteers for continuing to support the charity in various ways and volunteers remain a vital part of our work and contribution.

Plans for the Future Period

KHT continues to provide vital and impactful programmes for the marginalised Karen, despite facing many ongoing challenges and changes in the last year. The shrinking funding climate has had an impact on the availability of new grants, as well as increasing competition.

The charity successfully completed its planned projects, managed to maintain positive donor relations and adapt to staff and trustee board changes in the past year.

In the coming financial year, the hiring of a Fundraising Consultant will ensure the charity is able to provide more attention to finding new funding avenues, improve community fundraising and help increase the visibility of the charity in the UK and Thailand. The Trustee Board also remains committed to this goal, with the Fundraising Committee working with the Director and Fundraising Consultant.

Programmes continue to develop positively, with KHT planning to include new elements to projects and expanding its Access to Education Programme. The recruitment of a Monitoring and Evaluation Officer (MEO) has helped improved the process of collecting data and the Director will be working more closely with the MEO to further improve project assessments and media collection.

Looking ahead, KHT is committed to ensuring it can reach remote and forgotten communities, and in line with this, the charity will continue to work on its strategic vision, strengthen donor relations and try new ways to raise funds and awareness.

FINANCIAL REVIEW

As of 30th September 2025, KHT held funds totalling £188,265 (FYE 2024: £225,712). Income for the year ending 30th September 2025 totalled £333,663 (FYE 2024: £467,361) and expenditure totalled £371,110 (FYE 2024: £367,647), creating a deficit of £37,447 (FYE 2024: £99,714 surplus) in the year. Of the income received, £101,263 (FYE 2024: £137,684) was unrestricted and £232,400 (FYE 2024: £329,677) was restricted. Charitable spend made up 79% of the expenditure, 12% was expended on support costs and just 9% on raising funds.

Page 10

THE KAREN HILL TRIBES TRUST

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

Principal funding sources Income is generated from donations, grants, events and volunteers. Specific major grants have been received from:

KHT has also received donations and grant funding from several other donors who have requested to remain anonymous. These Financial Statements reflect the UK-generated income of KHT and include funds that are raised in Thailand. For operational reasons, funds raised in Thailand are processed through The Foundation for Karen Hilltribes in Thailand (KHTF ).

Fundraising

KHT would not be able to carry out its work without its dedicated supporters and is therefore committed to achieving the highest standard in fundraising. KHT does this by ensuring it abides by the Code of Fundraising Practice, set by the Fundraising Regulator, in all fundraising activities that it conducts. KHT is also committed to protecting privacy and will process personal data in accordance with the General Data Protection Act 2018 and its Privacy and Data Protection Policy. Personal details will always be kept safe and secure and will only be used by us or those who work for us. We promise never to share or rent personal details to third parties for marketing purposes.

Investment policy & objectives

There are no current restrictions on investment. Any investments are held on interest earning deposit at the bank for ease of access and minimal risk of loss.

Reserves policy

Total funds held by the Charity at year end were £188,265 (FYE 2024: £225,712), of which £134,561 (FYE 2024: £164,662) were restricted and not available for general purposes of the Charity. The Charity’s reserves level is calculated using major/catastrophic risks highlighted in the Charity’s detailed risk management framework. The current level of unrestricted reserves is set at a range of £55,000 to £65,000.

This is calculated as the total amount of funds required to:

The Charity held unrestricted funds of £53,704 (FYE 2024: £61,050) which is slightly outside its reserves policy at year end.

Reserves are regularly monitored by the Treasurer and Director and reviewed annually by the Board of Trustees. KHT expects its unrestricted reserves level to stay within the established reserves policy for the 2025/2026 financial year.

As a result, unrestricted reserves are budgeted to be outside the range calculated above at 30th September 2025, however the 2025/26 budget has been prepared on a cautious basis particularly in terms of budgeted income to be received from various fund-raising activities. Furthermore, there are also plans to continue to increase external fundraising activities via the efforts of the Director, Fundraising Manager and further involvement of the trustees via the fundraising sub-committee.

It is hoped that these initiatives will help to reduce the budgeted shortfall in unrestricted funds in the long term.

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THE KAREN HILL TRIBES TRUST

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

Approved by order of the members of the board of Trustees and signed on their behalf by:

J Heelham

Date:[11 June 2026 ]

Page 12

THE KAREN HILL TRIBES TRUST

(A company limited by guarantee)

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 30 SEPTEMBER 2025

The Trustees (who are also the directors of the Company for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the members of the board of Trustees and signed on its behalf by:

J Heelham

Date:[11 June 2026 ]

Page 13

THE KAREN HILL TRIBES TRUST

(A company limited by guarantee)

INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2025

Independent Examiner's Report to the Trustees of The Karen Hill Tribes Trust ('the Company')

I report to the charity Trustees on my examination of the accounts of the Company for the year ended 30 September 2025.

Responsibilities and Basis of Report

As the Trustees of the Company (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Company's accounts carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent Examiner's Statement

Since the Company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Page 14

THE KAREN HILL TRIBES TRUST

(A company limited by guarantee)

INDEPENDENT EXAMINER'S REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

This report is made solely to the Company's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Company's Trustees those matters I am required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Company and the Company's Trustees as a body, for my work or for this report.

Signed:

Dated: 11 June 2026

Susan Seaman BA FCA CIOT

AAB Audit & Accountancy Limited Gresham House 5-7 St Pauls Street Leeds LS1 2JG

Page 15

THE KAREN HILL TRIBES TRUST

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30 SEPTEMBER 2025

Note
Income from:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
Total income
Expenditure on:
Raising funds
7
Charitable activities
8
Total expenditure
Net (expenditure)/income
Transfers between funds
16
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Restricted
funds
2025
£
-
232,400
-
-
232,400
-
249,534
249,534
(17,134)
(12,967)
(30,101)
164,662
(30,101)
134,561		 Unrestricted
funds
2025
£
93,902
4,075
2,715
571
101,263
34,797
86,779
121,576
(20,313)
12,967
(7,346)
61,050
(7,346)
53,704		 Total
funds
2025
£
93,902
236,475
2,715
571
333,663
34,797
336,313
371,110
(37,447)
-
(37,447)
225,712
(37,447)
188,265		 Total
funds
2024
£
94,458
367,244
4,769
890
467,361
33,115
334,532
367,647
99,714
-
99,714
125,998
99,714
225,712

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 18 to 30 form part of these financial statements.

Page 16

THE KAREN HILL TRIBES TRUST (A company limited by guarantee) REGISTERED NUMBER: 04484077

BALANCE SHEET AS AT 30 SEPTEMBER 2025

Note
Fixed assets
Tangible assets
13
Current assets
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within one
year
15
Net current assets
Total assets less current liabilities
Total net assets
Charity funds
Restricted funds
16
Unrestricted funds
16
Total funds		 2,425
179,151
181,576
(7,483)		 2025
£
14,172
14,172
174,093
188,265
188,265
134,561
53,704
188,265		 1,655
207,731
209,386
(6,469)		 2024
£
22,795
22,795
202,917
225,712
225,712
164,662
61,050
225,712

The Company was entitled to exemption from audit under section 477 of the Companies Act 2006.

The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

J Heelham

Date:[11 June 2026 ]

The notes on pages 18 to 30 form part of these financial statements.

Page 17

THE KAREN HILL TRIBES TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

1. General information

The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is Tower House Business Centre, Fishergate, York, YO10 4UA.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Karen Hill Tribes Trust 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.

2.2 Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the statement of financial activities.

2.3 Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. Details of these judgements are set out in the accounting policies.

2.4 Going concern

The trustees, having made due and careful enquiry, are of the opinion that the charity has adequate working capital to execute its operations over the next 12 months. The trustees, therefore, have made an informed judgement, at the time of approving the financial statements, that there is a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future.

As a result, the trustees have continued to adopt the going concern basis of accounting in preparing the annual financial statements.

Page 18

THE KAREN HILL TRIBES TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

2. Accounting policies (continued)

2.5 Income

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

• income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.

• legacy income is recognised when receipt is probable and entitlement is established.

• income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.

• income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.

2.6 Expenditure

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Wages costs are apportioned between charitable activities, raising funds, and support costs as appropriate

Expenditure on raising funds includes all expenditure incurred by the Company to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs.

2.7 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

Page 19

THE KAREN HILL TRIBES TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

2. Accounting policies (continued)

2.8 Tangible fixed assets and depreciation

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Motor vehicles - 33% Straight line Fixtures and fittings - 33% Straight line Computer equipment - 33% Straight line

2.9 Debtors

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

2.10 Financial instruments

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

2.11 Pensions

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

2.12 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Page 20

THE KAREN HILL TRIBES TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

3. Income from donations and legacies

Donations
Legacies Income
Gift Aid
Donations
Legacies Income
Gift Aid		 Unrestricted
funds
2025
£
87,104
2,067
4,731
93,902
Unrestricted
funds
2024
£
88,538
1,000
4,920
94,458		 Total
funds
2025
£
87,104
2,067
4,731
93,902
Total
funds
2024
£
88,538
1,000
4,920
94,458

4. Income from charitable activities

Thailand Projects
Thailand Projects		 Restricted
funds
2025
£
232,400
Restricted
funds
2024
£
329,677		 Unrestricted
funds
2025
£
4,075
Unrestricted
funds
2024
£
37,567		 Total
funds
2025
£
236,475
Total
funds
2024
£
367,244

Page 21

THE KAREN HILL TRIBES TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

5. Income from other trading activities

Fundraising Events
Fundraising Events
6.
Investment income
Deposit Account Interest
Deposit Account Interest		 Unrestricted
funds
2025
£
2,715
Unrestricted
funds
2024
£
4,769
Unrestricted
funds
2025
£
571
Unrestricted
funds
2024
£
890		 Total
funds
2025
£
2,715
Total
funds
2024
£
4,769
Total
funds
2025
£
571
Total
funds
2024
£
890

Page 22

THE KAREN HILL TRIBES TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

7. Expenditure on raising funds

Costs of raising funds
Costs of raising funds		 Unrestricted
funds
2025
£
34,797
Unrestricted
funds
2024
£
33,115		 Total
funds
2025
£
34,797
Total
funds
2024
£
33,115

8. Analysis of expenditure on charitable activities

Summary by fund type

Thailand Projects
Thailand Projects		 Restricted
funds
2025
£
249,534
Restricted
funds
2024
£
228,785		 Unrestricted
funds
2025
£
86,779
Unrestricted
funds
2024
£
105,747		 Total
2025
£
336,313
Total
2024
£
334,532

Page 23

THE KAREN HILL TRIBES TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

9. Analysis of expenditure by activities

Thailand Projects
Thailand Projects
Analysis of support costs
Management costs
Finance costs
Governance costs
Management costs
Finance costs
Governance costs		 Activities
undertaken
directly
2025
£
290,840
Activities
undertaken
directly
2024
£
294,904		 Support
costs
2025
£
45,473
Support
costs
2024
£
39,628
Management
costs
2025
£
9,331
4,798
31,344
45,473
Management
costs
2024
£
8,947
4,399
26,282
39,628		 Total
funds
2025
£
336,313
Total
funds
2024
£
334,532
Total
funds
2025
£
9,331
4,798
31,344
45,473
Total
funds
2024
£
8,947
4,399
26,282
39,628

Page 24

THE KAREN HILL TRIBES TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

10. Independent examiner's remuneration

2025 2024
£ £
Fees payable to the Company's independent examiner for the independent
examination of the Company's annual accounts 5,047 3,960
Fees payable to the Company's independent examiner in respect of:
Other services not included above 8,880 7,560

11. Staff costs

Wages and salaries
Contribution to defined contribution pension schemes		 2025
£
73,388
2,073
75,461		 2024
£
77,732
2,691
80,423

The average number of persons employed by the Company during the year was as follows:

Charitable activities
Administration and support		 2025
No.
2
1
3		 2024
No.
2
1
3

No employee received remuneration amounting to more than £60,000 in either year.

12. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2024 - £NIL).

During the year ended 30 September 2025, no Trustee expenses have been incurred (2024 - £NIL).

Page 25

THE KAREN HILL TRIBES TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

13. Tangible fixed assets

Cost or valuation
At 1 October 2024
At 30 September 2025
Depreciation
At 1 October 2024
Charge for the year
At 30 September 2025
Net book value
At 30 September 2025
At 30 September 2024
Debtors
Due within one year
Prepayments and accrued income
Tax recoverable		 Motor
vehicles
£
45,129
45,129
22,758
8,389
31,147
13,982
22,371		 Fixtures and
fittings
£
167
167
121
46
167
-
46		 Computer
equipment
£
759
759
381
188
569
190
378
2025
£
1,780
645
2,425		 Total
£
46,055
46,055
23,260
8,623
31,883
14,172
22,795
2024
£
1,296
359
1,655

14. Debtors

Page 26

THE KAREN HILL TRIBES TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

15. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Accruals and deferred income		 2025
£
840
979
5,664
7,483		 2024
£
1,512
1,210
3,747
6,469

Page 27

THE KAREN HILL TRIBES TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

16. Statement of funds

Statement of funds - current year

Unrestricted funds
Unrestricted fund - General
funds
Restricted funds
Health
Education
Livelihood
WASH Rectification
Total of funds		 Balance at 1
October
2024
£
61,050
48,283
64,789
37,049
14,541
164,662
225,712		 Income
£
101,263
118,223
61,475
51,118
1,584
232,400
333,663		 Expenditure
£
(121,576)
(137,684)
(55,672)
(56,178)
-
(249,534)
(371,110)		 Transfers
in/out
£
12,967
-
(9,644)
-
(3,323)
(12,967)
-		 Balance at
30
September
2025
£
53,704
28,822
60,948
31,989
12,802
134,561
188,265

Page 28

THE KAREN HILL TRIBES TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

16. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
Unrestricted fund - General
funds
Restricted funds
Health
Education
Livelihood
Vehicle
WASH Rectification
Total of funds		 Balance at
1 October
2023
£
57,358
5,154
38,044
9,937
15,505
-
68,640
125,998		 Income
£
137,684
160,732
58,568
83,994
7,161
19,222
329,677
467,361		 Expenditure
£
(138,862)
(117,603)
(31,823)
(71,882)
(2,796)
(4,681)
(228,785)
(367,647)		 Transfers
in/out
£
4,870
-
-
15,000
(19,870)
-
(4,870)
-		 Balance at
30
September
2024
£
61,050
48,283
64,789
37,049
-
14,541
164,662
225,712

The health fund promotes better community health through the delivery of clean water systems and latrine/shower units.

The education fund helps children from isolated and marginalised communities complete their education.

The livelihood fund aims to safeguard crops and fields from natural hazards.

The vehicle fund relates to a grant for the purchase of a new vehicle for the charity's use.

The WASH Rectification Fund is to support repairs, filters and improvements for water systems.

Page 29

THE KAREN HILL TRIBES TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

17. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets
Current assets
Creditors due within one year
Total		 Restricted
funds
2025
£
-
134,561
-
134,561		 Unrestricted
funds
2025
£
14,172
47,015
(7,483)
53,704		 Total
funds
2025
£
14,172
181,576
(7,483)
188,265

Analysis of net assets between funds - prior year

Tangible fixed assets
Current assets
Creditors due within one year
Total		 Restricted
funds
2024
£
-
164,662
-
164,662		 Unrestricted
funds
2024
£
22,795
44,724
(6,469)
61,050		 Total
funds
2024
£
22,795
209,386
(6,469)
225,712

18. Pension commitments

Defined contribution plans

The amount recognised in income or expenditure in relation defined contribution plans was £2,073 (2024: £2,691).

Page 30