o®660,Qe@ave Healing Minds Foundation
FORMERLY HEALING KASHMIR
REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020
## HEALINGMINDS FOUNDATION
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|Pages|
|Trustees’|Report|1-3|
|Report|of the|Independent Examiner|4|
|Receipts|and|payments|5|
|Statement|of Assets|and|Liabilities|6|
|Notes|to the|accounts|7-11|
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HEALINGMINDS FOUNDATION TRUSTEES’ REPORT TRUSTEES Justine Hardy Richard | Morris Jr (Chairman) Sarah Warburton Denzil Robert Michael Foster
CHARITY NUMBER 1145308 CONTACT ADDRESS Flat 11 Shelley Court 56 Tite Street London SW3 4JB
## Report of the Trustees for the period ended 31 December 2020
The charity is an unincorporated charity, constructed under a Trust Deed dated 14 December 2011. The name of the charity was changed to Healing Minds Foundation (HMF UK) on 31 January 2018 after approval by the Charity Commission. HMF UK sponsors and funds the work of its affiliate Healing Minds Foundation LLC (HMF India).
The financial statements have been prepared in accordance with the accounting policies set out in Note 1 to the financial statements and comply with the Charity Trust deed and the requirements are set out in The Charities (Accounts and Reports) Regulations 2008.
The objects of the charity are to act for the public benefit to promote and protect good health by providing effective integrated mental health services in India to communities psychologically traumatized by extended periods of violence, conflict, or as a result of natural disasters in particular but not exclusively by the provision of a three-tier system including a free trauma helpline, free counselling services and free primary mental health care education to rural! communities, schools and colleges.
## The entire Trust Fund and income thereof is held for unrestricted purposes.
There shall at no time be less than three Trustees. The power to appoint new Trustees vests in the continuing Trustees. With the exception of the first Trustees, subsequent Trustees are appointed for a term of three years. Trustees are provided with a copy of the Trust Deed and most recent accounts and briefed on thelr legal obligations under charity law, the Charity Commission guidance on public benefit and are encouraged to attend appropriate extemal training event where these will facilitate the undertaking of their role.
## Activities in the period
As we reported in the annual review last year, in April 2020 Mariwala Health Initiative (MHI) took over the funding responsibility for Kashmir Lifeline & Health Centre (KLL) and Dr Prerna Sud became Director of KLL in succession to founder Justine Hardy. This transition came at the same time as the appearance of the Covid-19 pandemic which led to another lockdown in Kashmir as in India and elsewhere.
KLL continued its phone-based counselling services during the lockdowns and was able to open its office late in the year. The phone based counselling was able to reach many people in need. For example, in the fourth quarter more than 1,000 calls were answered. MHI also supported efforts to keep the team safe by funding a taxi service for employees when the office was open. However, KLL’s outreach and education programs, Including the Young Minds Programme, were cancelled. MHI and Or Sud hope that these can be restarted at some time in 2021.
Given the change in funding model and the inability for Miss Hardy to travel, HMF UK had very limited involvement with KLL during the financial year. We continue to provide oversight of HMF India finances and controls. For example, Mr Morris makes salary, rent and important vendor payments and monitors the bank accounts placing money on deposit when possible.
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## HEALINGMINDS FOUNDATION TRUSTEESREPORT ~ continued
## Activities in the period (continued)
## Funding
HMF UK Is no longer accepting charitable contributions and KLL is funded by MHI as discussed above. Some small donations were received before we could arrange for automatic contributions to be suspended.
## Expenses
HMF UK’s expenses were limited during 2020. Website management and updating to reflect the partnership with MHI cost £1,915, while our annual accounting review cost £1,140.
Our expenses total is significantly affected by the exchange rate movements, which vary from year to year ~ please see note 7 to the accounts for full details of the costs of the charity and Appendix 1 which presents the receipts and payments for the HMF India in rupees.
## Plans for future periods
The current position of both HMF UK and HMF India, where the trust and company remain formally responsible for the activities of KLL but have little or no influence, is unsatisfactory for Trustees of HMF UK and Directors of HMF India. Mr Morris and Miss Hardy have initiated discussions with MHI and Dr Sud regarding the future organisation and oversight of the project. They remain grateful for and confident in MHI's oversight of KLL. An important consideration in any discussion of HMF’s future role is that neither Miss Hardy nor Mr Morris are expected to travel to Kashmir in the foreseeable future.
## Financial review
The income and expenditure account for the year shows a deficit of £18,621, which includes an adjustment of £2,679 in respect of exchange rate movements which had the effect of increasing costs in India.
## Investment powers and policy
The Trustees, having regards to the requirements of the charity and to the reserves policy, seek to maintain funds in liquid form at the current time. Once funds have been bullt up, the Trustees will aim to achieve a rate on deposit which matches or exceeds inflation as measured by the retail price index. Interest rates in London remain depressed, but the charity enjoys interest of about 4.5% on our deposits in at HMF India and received over £1,600 in interest income in 2020.
## Reserves policy
It is the long-term policy of the Trustees to maintain unrestricted funds, which are the free reserves of the charity, sufficient to meet the annual operating costs in Jammu and Kashmir.
## Public Benefit
The principles of public benefit ,as defined by the Charity Commission ,have been noted by Trustees. The Trustees confirm having given regard to the Charity Commission's initial guidance and continue in their belief that the Fund provides identifiable benefits to a section of the public.
## Risk Management
The Trustees consider they hold adequate funds to meet current liabilities. The Trustees have identified and examined the major risks to which the charity is exposed and have established procedures for taking all reasonable steps to lessen or mitigate them. The Trustees review these risk management procedures annually.
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## HEALING MINDS FOUNDATION
## TRUSTEES REPORT - continued
## Trustees’ responsibilities in relation to the financial statements
The charity Trustees are responsible for preparing the Trustees’ Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable; to charities in England and Wales requires the Trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period.
## In preparing these accounts, the Trustees are required to:
* select suitable accounting policies and then apply them consistently;
* observe the methods and principles in the Charities SORP; * make judgments and estimates that are reasonable and prudent; * to state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; * 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 that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and the group and hence taking reasonable steps maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
## Approved by the Trustees on 9 September 2021
And signed on their behalf by
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Mee VD b.. RI Mortis Jnr
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Trustee
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## HEALINGMINDS FOUNDATION
| report on the accounts of the Trust for the period ended 31 December 2020, which are set out on pages 6 to 11.
## Respective responsibilities of trustees and examiner
As the charity's trustees you are responsible for the preparation of the accounts, you consider that the audit requirements of section 144(2) of the Charities Act 2011 (the 2011 Act) does not apply and that an independent examination is needed. It is my responsibility to state, on the basis of procedures specified in the General Directions glven by the Charity Commissioners under section 145(5)(b) of the 2011 Act, 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 Commissioners. 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:
- (a) which gives me reasonable cause to believe that in any material respect, the requirements:
(i) to keep accounting records in accordance with section 130 of the 2011 Act; and
(ii) to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act;
have not been met; or
(b) to which, in my opinion, attention should bs drawn in order to enabie a proper understanding of the Que to be reached. Susan Kumar ACA Springfield House, 23 Oatlands Drive, Holden Granat LLP Weybridge Surrey KT13 9LZ Date:me A (Q{ 2021
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## HEALINGMINDS FOUNDATION
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Note 2020 2019
£ £
Receipts
Voluntary Income received 5 51,800 36,754
Gift Aid received 5 112 68
investment income 6 1,667 5,727
Total Receipts £53,579 £42,549
Payments
Cost of Charitable Activities 7 68,160 108,798
Governance Costs 8 4,040 8,497
Total Payments £72,200 £117,295
Net (payments)/receipts (18,621) (74,747)
Cash funds brought forward 88,507 163,253
Cash funds carried forward £69,886 £88,507
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HEALING MINDS FOUNDATION
SUMMARY OF ASSETS AND LIABILITIES as at 31 December 2020
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Note Group Charity
2020 2019 2020 2019
£ £ £ £
Fixed assets
Investments 9 : - 100 _—100-
Current assets - - 100 100
Cash atbank andinhand 10 69,886 88,507 18,880 21,625
Net current assets £69,886 £88,507 £18,880 £21,625
Total assets £69,886 £88,507 £18,880 £21,625
Represented by:
Unrestricted funds £69,886 £88,507 £18,880 £21,625
Liabilities (Unrestricted Fund)
Independent Examination
fee £1,140 £1,080 £1,140 1£,1,080
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The notes on pages 7 to 11 form part of these accounts.
The accounts were approved by the Trustees on q September 2021 and signed on their behalf by
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Katte fe. R I Morris Jnr
Trustee
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## HEALINGMINDS FOUNDATIONS
## 1) Accounting policies
a) Basis of preparation of accounts These Accounts have been prepared on a receipts and payments basis and in accordance with Accounting and Reporting by Charitles: 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, and UK Generally Accepted Accounting Practice The results of the charity's of the charity's the charity's charity's subsidiaries have been been consolidated ona onaa line by line by line line basis. b) Donations received All income from donations received is included in income upon receipt. The charity has not received any goods for use by itself.
The results of the charity's of the charity's the charity's charity's subsidiaries have been been consolidated ona onaa line by line by line line basis.
## c) Investment income Deposit interest is accounted for in the period in which It is received.
- d) investments Unquoted investments are valued at cost on the Statement of Assets and Liabilities.
- e) Expenditure
Expenditure is recognised upon payment and allocated to the entity incurring the expense — reallocation of costs ids not considered necessary.
Cost of charitable activities relates to the operational costs of the Kashmir Lifeline and Health centre. This includes the ongoing statutory and professional costs of operating the legal structures required to allow the charity to operate in India.
Govemance costs include those costs incurred in the governance by the Trustees of the charity's assets and are primarily associated with constitutional and statutory requirements of operating the charity. f) Foreign currencies Transactions in foreign currencies are recognised In the Receipts and Payments account at the average exchange rate for the period and in the Statement of Assets and Liabilities at the rate on 31 December 2020. All exchanges differences are recognised through the Statement of Financlal Activities.
## g) Operating leases Rental payments are charged as expenditure as paid over the term of the lease.
## h) Going Concem
The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. Taking into account the funding commitment from MHI, the budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concem.
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## HEALINGMINDS FOUNDATION
## 2) Taxation
The Trust is a registered charity and accordingly is exempt from taxation on its Income and gains where these are applied to charitable purposes.
## 3) Transaction with Trustees
None of the Trustees received any remuneration for his/her services during the period ended 31 December 2020.
## 4) Related party transaction
During the period £ NIL (2019 £NIL) was transferred to the charity's subsidiary, HMF India, a charitable purpose company registered in india, to fund the charitable activities undertaken by the company In Jammu and Kashmir.
5) Voluntary income All voluntary income received during the period was unrestricted. Donations are received by both the charity and its subsidiary in Kashmir.
|||2020|2019|
|---|---|---|---|
|||£|£|
||Voluntaryincome received during the year:|||
||Donations from individuals and trusts|51,800|36,754|
||Giftaid|112|68|
|||£51,912|£36 822|
|6)|InvestmentIncome|||
|||2020|2019|
|||£|£|
||Investment income has arisen as follows:|||
||Interestreceived|1,667|£5,727|
|7)|Costof Charitable Activities|||
||The amount spenton charitable activities during the period underreview retate tothe operation of|||
||the HMF India, incorporating the Kashmir Lifeline and Health Centre, for which the following|||
||expenseswere incurred:|||
||Women's
Hygiene Project
Salaries
andPersonnelexpenses
Helpline Telephone Line
Hardwareand Support
Website costs
Facilities and Marketing|2020£
1,640
49,663
1,353
5,059
638
4,111|2019£
.
76,938
846
3,938
2,289
§,523|
||Travel&Accommodation|3,747|14,712|
||Bank charges|0|50-|
||LocalTaxes|(730)|653|
||Loss/(Gain)on Exchange|2,679|3,849|
|||£68,160|£108,798|
## 7) Cost of Charitable Activities
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## HEALINGMINDS FOUNDATION
## 7) Cost of Charitable Activities (continued)
At year-end KLL employed fifteen people full and part time.. HMF UK has no employees.
## 8) Governance costs
The governance costs of the charity comprised the following costs:
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2020£ 2019£
Independent Examiners Fees 1,140 1,080
Other Professional and Statutory 2,900 7,417
Fees
£4,040 £8,497
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9) Investment in subsidiary The charity owns 99.90% of the share capltal the Healing Minds Foundation LLC, which was established In order to allow the charity to undertake its charitable activities in India.
## 10) Cash at Bank and in Hand
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Group Charity
2020 2019 2020 2019
£ £ £ £
Bank balances 69,712 88,415 18,880 21,625
Cash balances 174 92 -
£69,886 £88,507 £18,880 £21,625
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## 11) Subsidiary: Healing Minds Foundation LLC
The charity owns 99.9% of the share capital of Healing Minds Foundation LLC (referred to as HMF India) which operates the Kashmir Lifelines and Health Centre in Jammu and Kashmir. The assets and liabilities of the subsidiary are detailed below and the results are analysed In note 12.
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## HEALINGMINDS FOUNDATION
|12)|AnalysisofReceipts& Payments between|AnalysisofReceipts& Payments between|charityand|and subsidiary||
|---|---|---|---|---|---|
|||Subsidiary
2020||Charity
2020|Total
2020|
||||£|£|£|
||Receipts|||||
||Voluntaryincome received|51,565||235|51,800|
||GiftAid|-||112|112|
||Investmentincome|1,667||-|1,667|
||Cash transfer to/(from)|0||(0)|-|
||subsidiary|||||
||Total Receipts/
(Payments)|£53,232
£347
eee|||£53,579
ee|
||Payments|||||
||CostofCharitable|66,244||1,916|68,160|
||Activities|||||
||Governance Costs|2,864||1,176|4,040|
||Total Payments|£69,108||£3,092|£72,200|
||Net Receipts /|(15,876)||(2,745)|(18,621)|
||(Payments)|||||
||Cashfunds brought
forward|66,882||21,625|88,507|
||Cashfunds carried
forward|£51,006||£18,880|£69,886|
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## APPENDIX1
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||||||
|---|---|---|---|---|
|2020|2019|
|INR|INR|
|Receipts|
|Transfers from/To|Healing Minds Foundation|0|30,000|
|Donations|4,796,927|-|
|Investment income|155,113|504,082|
|Total Receipts|4,952,040|534,082|
|Payments|
|Professional|Fees|266,450|276,472|
|Personnel Expenses|4,619,907|5,092,863|
|Helpline Phone Lines|125,886|74,514|
|Hardware and Support|351,690|332,477|
|Travel and Accommodation|348,546|464,237|
|Local Taxes|(67,918)|57,448|
|Facilities and|Marketing|382,423|470,190|
|Women's|Hygiene|Project|152,591|-|
|Total Payments|6,179,575|6,768,198|
|Net (payments)|/ receipts|(1,227,535)|(6,234,116)|
|Cash funds|brought forward|6,326,175|12,560,290|
|Cash funds carried forward|INR 5,089,935|INR 6,326,174|
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