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2020-09-17-accounts

Registered number 8219609 England & Wales

UMN Support Trust Private company limited by guarantee

UMN Support Trust

Report and accounts

For the Year Ended 17 September 2020

Registered Charity Number 1151842

Page 1

Registered number 8219609 England & Wales

UMN Support Trust Private company limited by guarantee

Report and Accounts Contents

Legal and Administrative Information Page 3
Independent Examiners’ Report Page 4
Directors and Trustees Report Page 7
Financial Activities (including Income and Expenditure Account) Page 12
Balance Sheet Page 13
Notes to the Financial Statements Page 14

Registered Charity Number 1151842

Page 2

Registered number 8219609 England & Wales

UMN Support Trust Private company limited by guarantee

Legal and Administrative Information

Members of the Company all of whom are appointed as Directors and Trustees

Alan Penn

Christopher Mark Galpin Richard Hugh Sykes Joel Andrew Hafvenstein David Andrew Rodgers

Alan Penn

Secretary Alan Penn Registered Office 97 Eastern Avenue Chippenham Wiltshire SN15 3SF Coordinating Trustee and main contact Alan Penn Bankers Lloyds Bank PO Box 1000 BX1 1LT Date of Incorporation 18 September 2012 Company Number 8219609 Date entered onto Register of Charities 30 April 2013 Registration number 1151842 Website www.UMNSupporttrust.org Independent Examiners Mr. S Hardy 10 Harford Close Chippenham Wiltshire SN15 3PY

J. Budgel ACMA 29 Pavely Close Chippenham Wiltshire SN15 2BZ

Registered Charity Number 1151842

Page 3

UMN Support Trust Private company limited by guarantee o the Trustees of UMN Registered number 8219609 England & Wales ndent Exami rt Trust I report on the financial statements of the UMN Support Trust for the year ended 17 September 2020 as set out on pages 12 to 15 Respective Responsibllities of Trustees and Examlner The Trustees (who are also the Directors of the company for the purposes of company lawl are responsible for the preparation of the accounts. The Trustees consider that an audit is not required for this year lunder section 144121 of the Charities Act 2011 (the 2011 Actll and that an independent examination is needed. Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to.. E.x3mine the accounts under section 145 of the 2011 Act; to follow the procedures laid down in the General Directions given by the Charitv Commission under section 14515llbl of the 2011 Act,. and to state whether particular matters have come to myattention. Bas55 of the Independent Examlnerfs 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 financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from the 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 flnancial statements present a 'true and fair view, and the report is limited to those matters set out in the Statements below. Independent Examlnerfs Statement In connection with my examination, no matter has come to my attention.. which gives me reasonable cause to believe that, in any material respect, the requirements,. to keep accounting records in accordance with Section 386 of the Companies Act 2006,. and to prepare accounts which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of their Statement of Recommended Practice.. Accounting and Reporting by Charities,. have not been met or 2. to which, in my opinion. attention should be drawn in order to enable a proper understanding of the accounts to be reached. S. Hardy 10 Harford Close Chippenham Wiltshire SNIS 3PY Registered Charity Nuinber l 151842 Page 4

Registered number 8219609 England & Wales

UMN Support Trust Private company limited by guarantee

Independent examiner's report on the accounts

Section A Independent Examiner’s Report Section A Independent Examiner’s Report Section A Independent Examiner’s Report Section A Independent Examiner’s Report
Report to the
trustees/directors/
members of
On accounts for the year
ended
Set out on pages
Responsibilities and
basis of report
Independent
examiner's statement
Charity Name
UMN SUPPORT TRUST
17thSEPTEMBER 2020
Charity no.: 1151842 Company no.: 08219609
7 to 15 (remember to include the page numbers of additional sheets)

Registered Charity Number 1151842

Page 5

I have no concems and have come across no other matters in connection wilh the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Please delete the words in the braGkets if they do not apply Signed: Date: Name: JENNIFER BUDGEL Relevant prof8ssional qualificationls) or body {if any): CIMA Address: 29 VELY CLOSE CHIPPENHAM SN15 2BZ Section 8 Disclosure Only complete if the examiner needs to highlight material matters of concern (see CC32, Independent examination of charity accounts.. directions and guidance for examiners). Glve here brlèf deta118 of any Item8 that the examiner wishes to d18cIo8e. IER October 2018

Registered number 8219609 England & Wales

UMN Support Trust Private company limited by guarantee

Report of the Directors and Trustees for year ending 17 September 2020

The Directors who are also the Trustees of the charity have pleasure in submitting their report for the year. The Directors all of whom served as Trustees are listed on page 3 and this together with the other statutory information forms part of this report.

Structure, Governance and Management

UMN Support Trust (‘UMNST’) was incorporated on 18 September 2012 and is governed by the Articles and Memorandum of Association that were put in place at the time of incorporation and there have been no changes since incorporation.

A minimum of two and up to five Trustees can be appointed by the members (currently Alan Penn, Christopher Mark Galpin, Joel Andrew Hafvenstein, Richard Hugh Sykes and David Andrew Rodgers). United Mission to Nepal (“UMN”) can nominate UMNST Trustees provided that the nominated Trustees do not form a majority and the total number of Trustees does not exceed ten or be less than three. Joel Andrew Hafvenstein and David Andrew Rodgers are the only current Trustees nominated by UMN. New Trustees would be expected to have some experience in the operation of charities, development work to alleviate the root causes of poverty and preferably some understanding of Nepal and the needs of the poorer and poorest communities.

J. A Hafvenstein is seconded by Church of Scotland, a UK charity, to be the current Executive Director (E.D.) of UMN based in Kathmandu. D. A. Rodgers lives in the UK and is a board member of UMN, C.M. Galpin was the previous E.D. of UMN and R. H. Sykes was a UMN Board member until May 2019.

A. Penn, the UMNST Administrator, was the Funding Management Coordinator for UMN in Kathmandu for nearly six years. He returned to UK in October 2012.

Objects, Activities and Public Benefit

UMNST is an independent Christian charity focusing on addressing poverty primarily in Nepal by in particular, but not solely, promoting the charitable purposes of UMN, an International NonGovernment Organisation that has worked only in Nepal for 65 years to alleviate poverty.

Support will be given to specific community-based poverty alleviation programmes being undertaken by UMN’s Nepali partner organisations, by publicising, promoting and financially supporting those programmes. UMN’s contribution of advising and field monitoring of the projects and simultaneously capacity building the partner organisations will also be included in the budget of the programmes that UMNST is supporting. Support may also be given to the education or development training of locally selected children and young people where it can be shown that finance is not otherwise available for the activity to take place.

All programmes must be agreed by UMN and UMNST before being supported.

In addition, UMNST will publicise and promote the work of UMN’s two rural mission hospitals at Tansen and Okhaldhunga.

Registered Charity Number 1151842

Page 7

Registered number 8219609 England & Wales

UMN Support Trust Private company limited by guarantee

Major Events Affecting Timing of Grants to Nepal

COVID 19 Pandemic – Effect on UMN Development Programmes.

The pandemic quickly affected the development programmes in all the rural districts where UMN’s development work takes place. This resulted in the need for the development programmes to be stabilized, smaller elements completed, and the remainder of each programme put on hold. The UMN staff then returned to their homes or to the Headquarters in Kathmandu where reduced numbers were able to safely work for a few more weeks. No new projects were started. It was decided by both UMN and UMNST that it was best if the funds that were designated for UMN’s development work were retained by UMNST until the project work could be restarted. UMN would continue to receive donations for UMN work.

COVID 19 Pandemic - Effect on Tansen and Okhaldhunga Hospitals

Both hospitals serve a wide rural area and are also involved in medical support in the community. Tansen being the bigger of the two hospitals has a large nurse training programme and trains some medical and surgical staff.

The hospitals receive 20% of their income from world-wide supporting organisations and from individuals, many of whom have done voluntary work at the hospitals for short or long periods. The remaining 80% is income that is received from patients who need to pay for their treatment or medical supplies. In Nepal there is no National Health Service. Many people cannot afford the full cost of normal medical bills or operations, especially those requiring recovery time in hospital beds. Both hospitals have a Medical Assistance Fund (MAF) to financially help those having difficulty meeting the cost of medical expenses. The MAF is large and whilst some of the income can be generated internally, the world-wide supporters provide a large percentage of MAF.

The major effects of COVID

Large Funding Appeal for UMN’s Hospitals

A worldwide ‘Save our Hospitals’ Appeal was launched in March 2020 and was due to remain open as long it was needed.

UMNST is the recommended route for the majority of Individuals from the UK because of its UK bank account, Gift Aid possibilities, and possible Inheritance Tax savings. In addition, some overseas supporters use UMNST’s PayPal account in order to make donations designated for UMN or the hospitals.

As a result, up to the financial year end, UMNST received £181,857 for the Hospital Appeal.

Registered Charity Number 1151842

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Registered number 8219609 England & Wales

UMN Support Trust Private company limited by guarantee

UMN Support Trust’s agreement to be the Founder of UMN MDT in Nepal

UMN has been working in Nepal since 1954 and amongst other projects, founded the hospitals at Tansen and Okhaldhunga. Every five years, agreement was reached with the Government regarding the next five year’s work programme and the funding levels required from overseas.

In 2020, a new form of incorporation (named a Guthi), could be created under Nepali law and this can have foreign board members. During discussion with the hospitals regarding the next five-year agreement, the Government of Nepal’s Ministry of Health and Population ( MoHP ) said that the UMN hospitals had to be run by a Nepali incorporated organisation. The UMN hospitals thought that a Guthi would be an appropriate organisation and this was discussed with the MoHP

A new Guthi must be funded from outside of Nepal and founded by an overseas organisation. The founding organisation must transfer $1m USD within the first three months.

UMNST has, at the request of UMN and the hospitals, agreed to act as the legal Founder of a Guthi named UMN Medical and Development Trust (UMN MDT). This was undertaken after the UMNST’s year end. It included the UMNST grant of $1m, the details of which will be reported in the 2020-2021 Annual Report.

Decision to postpone grants to the hospitals.

UMN’s discussions with the Government were known part way through UMNST’s 2019-20 financial year and it was decided by the trustees, in consultation with UMN, that in view of UMNST’s likely involvement in founding and funding UMN MDT, that it was appropriate to retain any hospital funds until the question of the need for UMN MDT had been resolved with the MoHP.

- Grants made prior to the decision to postpone grants until the 2021 2022 financial year.

This was a one year £49,862 Sustainable Livelihoods Project based in Doti District. The Island of Guernsey Development Fund had granted £39,937 to UMNST for this project, the local community gave £4714, and UMNST provided the balance of £6,211 from its general funds.

The project enhances the quality and quantity of turmeric production and processing thereby improving the income of 1200 households. 736 farmers were trained to improve production techniques, harvesting, post-harvesting and processing at the local level. A new irrigation canal was constructed, two grinding mill machines were purchased, and machine maintenance was taught. Mobile spraying tanks were provided for pest control and 364 large tarpaulins were provided for sun-drying of the turmeric. The producers were linked into improved marketing chains and distribution outlets.

Registered Charity Number 1151842

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Registered number 8219609 England & Wales

UMN Support Trust Private company limited by guarantee

Sources of Income

Income is received from individuals, small organisations, church groups and UK trusts

UMNST’s PayPal account offers the ability to receive eleven different currencies and publicity of this has facilitated some overseas financial support.

UMNST is holding £840,000 of UMN’s reserves in a loan account which is repayable to UMN on 28 days’ notice. Income from the investment of these funds forms part of UMNST’s income.

Outgoings

UMNST will keep its own costs to a minimum.

The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Trust's aims and objectives, planning activities, setting the grant making policy and monitoring the funds usage.

Projects for 2021/22

The Trustees are unlikely, at this time, to widen their area of support in Nepal.

Registered Charity Number 1151842

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Registered number 8219609 England & Wales

UMN Support Trust Private company limited by guarantee

Statement of Directors’ Responsibilities

The Directors are responsible for preparing the Report of the Directors and the financial statements in accordance with the applicable law and regulations. Company law and the Charity Commission require the Directors to prepare financial statements for each financial year. The Directors have elected to prepare the financial statements in accordance with the charity’s ‘Statement of Recommended Practice (revised 2005)’ and in accordance with the requirements of annual Corporate reporting and taking into account the fact that the company is a ‘small’ company. The Directors 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 the income and expenditure of the company for that period and its charitable status. In preparing these financial statements, the Directors are required to

The Directors are responsible for keeping proper 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 to enable them to ensure that the financial statements meet the requirements of the Companies Acts and the Charity Commission. They are also responsible for safeguarding the assets of the company, ensuring that the funds are used properly and transparently for the benefit of those suffering from personal, community or institutional poverty in accordance with the objectives of the charity, and for the prevention and detection of fraud and other irregularities.

Directors’ Interests

No director has had any beneficial interest in any contract or arrangement of a material nature with the company during the period under review.

Report Approved by the Directors (who are also Trustees) on 28[th] April 2021.

The company has taken advantage of the small companies’ exemption in preparing the Directors’ report.

6 Ja30 April 2021

Alan Penn (Director and Company Secretary)

Registered Charity Number 1151842

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Registered number 8219609 England & Wales

UMN Support Trust Private company limited by guarantee

Statement of Financial Activities (including Income and Expenditure Account) For the year (12 months) ending 17th September 2020

Operating Account

Operating Account
Incoming resources Note Undesignated Restricted Total Previous
Funds Funds Funds Total
2019/20 2019/20 2019/20 2018/19
COVID – Save our Hospitals Appeal 163,727 163,727
Salesprocessed on behalf of UMN 1 738 738 801
Donations andgrants 4,000 74,245 78,245 93,978
Investment Income 2 12,048 12,048 13,159
Gift Aid – Hospitals Appeal 18,130 18,130
Gift Aid – Other donations 1,000 7,566 8,566 9.093
Total incoming resources 5,000 276,454 281,454 117,031
Resources expended – sales/grants
Sales - remitted to UMN 0 0 752
Sales – due to UMN 738 738 49
UMN/ Partner community projects 3 19,969 19,969 74,880
UMN Flood Relief and restoration 4 4,100
Tansen Hospital 5 14,160 14,160 24,000
Okhaldhunga Hospital 5 3,250 3,250 10,750
Total resources expended 0 38,117 38,117 114,531
Nett movement 5,000 238,337 243,337 2,500
Operating Funds brought forward 255 2,946 3,201 701
Operating Funds carried forward 5,255 241,283 246,538 3,201

Investment account

Investment account
Unrealised gains / (losses) on
investments
35,953 46,796
Value of Investments 1,038,186 1,002,233
Value of Loan to be Repaid 840,000 840,000
Nett investment value carried forward 198,186 198,186 162,233

Total Funds

Total Funds carried forward 5,255 439,469 444,724 165,434

Registered Charity Number 1151842

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Registered number 8219609 England & Wales

UMN Support Trust Private company limited by guarantee

Balance Sheet - For the year ending 17[th] September 2020

2019/20 Notes 2018/19
Fixed Assets 0 0
Intangible Assets 0 0
Tangible Assets 0 0
Investments 0 0
Current Assets
Stocks 0 0
Debtors 373 6 157
Value of Investments 1,038,186 7 1,002,233
Cash at bank and in hand 246,952 3,093
Current Liabilities
Creditors – loans fallingdue within oneyear 840,000 8 840,000
Other,UMN sales 787 8 49
Total assets less current liabilities 444,724 165,434
Creditors– amounts fallingdue after more than oneyear
Nett Assets 444,724 165,434
Funds Balance Carried Forward 444,724 165,434
Designation of Balance
Undesignated 5,255 255
Restricted funds
Restricted funds – Save our Hospitals Appeal 181,857
Restricted funds,UMN communitywork 42,915 2,927
Restricted funds,Mission Hospitals 16,511 19
Restricted funds – Nett unrealised value of investments 198,186 162,233

For the year ending 17/9/2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors’ responsibilities:

• the members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Companies Act 2006 relating to small companies.

• the Directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

• these accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

Accounts were approved by the Directors who are also the Trustees on 28[th] April 2021 and signed on their behalf by:

Registered Charity Number 1151842

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Registered number 8219609 England & Wales

UMN Support Trust Private company limited by guarantee

Alan Penn (Director and Company Secretary)

Notes forming part of the Financial Statements for the year ended 17[th] September 2020

Accounting Policies

The principal accounting policies are summarised below.

Basis of accounting

The accrual accounts and financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities issued in March 2005 and in accordance with the special provisions applicable to companies subject to the small companies’ regime.

Fund accounting

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity.

Designated funds are unrestricted funds earmarked by the Trustees for particular purposes.

Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of a funding appeal for specific projects.

Incoming resources

All incoming resources are included in the statement of financial activities when the charity is entitled to, and virtually certain to receive, the income and the amount can be quantified with reasonable accuracy.

The following policies are applied to particular categories of income:

Voluntary income is received by way of grants, donations and gifts and is included in full in the Statement of Financial Activities when receivable. Grants, where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.

Donated services and facilities and the value of services provided by volunteers have not been included in these accounts.

Investment income is included when received.

Incoming resources from charitable trading activity are accounted for when earned.

Resources expended

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which it relates.

Costs of generating funds comprise the costs associated with attracting voluntary income and the costs of trading for fundraising purposes.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Registered Charity Number 1151842

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Registered number 8219609 England & Wales

UMN Support Trust Private company limited by guarantee

Loans Received

UMNST has received loans from related organisations. The funds from the loans have been invested either in established charitable investment funds or through an established financial firm which manages a portfolio of investments on behalf of UMNST. The loans have no fixed maturity date and are interest free. They are subject to repayment upon 28 days’ notice, at the lower of the realisable value of the related investments and the principal amount of the loan. Therefore, no loss will be incurred by UMNST.

Any interest, or dividends received or realised gains will be used by UMNST for charitable grants in line with UMNST’s aims and in line with any acceptable restriction by the lender.

Note 1. – Sales.

UMNST allowed UMN to use UMNST’s PayPal facility on the UMN web site to sell calendars, Christmas cards and a commemorative book. UMNST passed 100% of the proceeds to UMN and therefore incurred no profit or loss.

Note 2 – Investment Income

As described above under loans received.

Note 3 – Grants made to UMN and partners.

For the community projects as described in Page 6 – 8 of this report.

Note 4- 5 – Grants to Tansen and Okhaldhunga Mission Hospital

Grants for the general running cost, medical assistance costs for poor patients and equipment as described on Page 7 of this report.

Note 6 – Debtors

HM Revenue and Customs for Income Tax refunds made under the UK Gift Aid scheme.

Note 7 – Investments held as Current Assets

The underlying investments are valued at market value at 17 September 2020

Note 8 – Creditors – amount falling due in less than one year

Loan from UMN subject to 28 days’ notice of repayment and valued at the lower of the market value of the related investments or original loan amount of £840,000. Amount due to be paid to UMN for sales made upto September 2020.

Note re Taxation

As a charitable company UMNST is exempt from tax for the income of the charity under sections 466 to 493 of the Corporation Tax Act 2010

Registered Charity Number 1151842

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