REGISTERED COMPANY NUMBER: 10471484 (England and Wales) REGISTERED CHARITY NUMBER: 1170522
Report of the Trustees and Unaudited Financial Statements for the Year Ended 31 December 2025
for
Classrooms in the Clouds (A Company Limited by Guarantee)
Marshall Accountancy Ltd St Mary's House Crewe Road Alsager Stoke-On-Trent ST7 2EW
Classrooms in the Clouds
Contents of the Financial Statements for the Year Ended 31 December 2025
| Page | |
|---|---|
| Reference and Administrative Details | 1 |
| Report of the Trustees | 2 to 17 |
| Independent Examiner's Report | 18 |
| Statement of Financial Activities | 19 |
| Balance Sheet | 20 |
| Notes to the Financial Statements | 21 to 25 |
| Detailed Statement of Financial Activities | 26 |
Classrooms in the Clouds
Reference and Administrative Details for the Year Ended 31 December 2025
TRUSTEES S Hagen M Hagen (Chairman) L McLaren D G Sherpa A S Roberts D G Thomas C Owen A Waller S Sixsmith REGISTERED OFFICE 18 Sandlea Park West Kirby Wirral Merseyside CH48 0QF REGISTERED COMPANY 10471484 (England and Wales) NUMBER REGISTERED CHARITY 1170522 NUMBER INDEPENDENT EXAMINER Marshall Accountancy Ltd St Mary's House Crewe Road Alsager Stoke-On-Trent ST7 2EW
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Classrooms In The Clouds Trustees' Report
The Trustees of Classrooms in the Clouds are pleased to present their Report and Accounts for the period ending 31 December 2025. These accounts have been prepared in accordance with 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 2015)’, Financial Reporting Standard for Smaller Entities (effective January 2015) and the Charities Act 2011, and the Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) ‘Accounting and Reporting by Charities’ issued in March 2005.
The Challenge
Nepal faces a severe crisis of emigration and rural depopulation, driven by a lack of local jobs, poor infrastructure, and climate change, with over 3,300 youth departing daily for foreign employment. This has led to an "emptying" of villages, resulting in agricultural labour shortages, abandoned farmland, and a reliance on remittances, which causes social fragmentation and an aging, vulnerable rural population. It must be stated at the outset, however, that this strategy is not based on the misconception that ‘migration is a problem to be solved’. Rather, CITC agrees with the International Organization for Migration that ‘Countries should promote stability, education and employment opportunities and reduce the drivers of forced migration, including promoting resilience, thereby enabling individuals to make the choice between staying or migrating.’
According to the latest report from the Government of Nepal National Statistics Office, nearly half (49.4%) of absentees fall within the 20-29 year age group, followed by the 30-39 year age group (19.5%) and 10-19 years (17.3%). Nearly two-fifths (38.9%) absentees were illiterate.
Nepal Economic Forum 2022 and others
A lack of rural development and education opportunities are often cited. An International Organization for Migration (IOM) assessment carried out in the country in 2019[IOM Migration 2019] found that that there was a need for improved coherence between migration, sustainable development, education and rural development.
Why Education?
It is undeniable, therefore, that education one of the main factors in the management of migration and creates more choice for young people in Nepal. Classrooms In The Clouds (CITC) has clearly stated:
Nepal is a land of mountains: both awe-inspiring physical peaks, and the metaphorical barriers which stand in the way of children’s schooling and women’s aspirations. Together, we believe we can move mountains. We can celebrate these women, and in turn the children they teach.
• Together, we can provide the resources needed to break down those barriers – from functioning classrooms to teacher training;
• Together, we can address gender inequalities, supporting women with a passion for teaching to become role models for the next generation;
• Together, we can spread the message through a network of schools and organisations in the UK, ultimately helping more children towards a brighter future and more women to find their own ‘why’.
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What Nepali School Communities Want and Need
A key desire is the development of high quality teaching and learning in local state schools. An emphasis on educating the youngest to become creative, resilient, curious, literate and numerate is essential for developing lifelong learning.
The communities want teachers that work hard, are punctual and regular attendees and are excellent in their role. That is why we sponsor female teachers who are traditionally underrepresented in school and ensure they are on the same employment terms as government teachers. They are supported in tackling any skills shortfall with 4 female Education Support Leaders (ESLs) who lead and mentor the sponsored teachers.
The ESLs provide sponsored teachers training and mentorship in their school settings. The majority of support is peer led and modelled in the classroom.
Engaging with the whole school community, Principals, SMC, Municipalities, teachers and parents, we can deliver a sustainable model for excellent teaching and learning for the 3 to 8 year old children in the 16 supported schools.
How is it Done?
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Building good quality,
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earthquake-resistant classrooms.
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Tackling gender inequality issues;
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Sponsoring, training and supporting new
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female teachers;
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Creating long-term, sustainable
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partnerships with school communities.
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What does the Community say?
CITC welcomes local feedback such as that from the Social Welfare Council and the Menstrual Health Programme.
Social Welfare Council (SWC), Nepal
The SWC is the NGO statutory audit body in Nepal that inspects what CITC does. They recently took an in depth look at CITC's teacher sponsorship and development programme. Below are quotes taken from their report that reflect the overall theme: 'The study team clearly has analyzed that 27 sponsored teachers, 11 partner schools and approx. 5000 students of partner schools are benefited by this project. The average attendance of both groups at the partner schools is over 90%, according to the annual evaluation of teacher and student attendance. About 75% of the primary grade's average learning achievement in grades 1, 2, and 3 has been maintained throughout the initiative. Similarly, the partner schools' results exceed 87%, which is significantly higher than the 47.86%
national average, even when compared to the SEE result of 2080. The trend of Teachers Learning Circle Meeting has helped increase interaction among different schools within the district and learn from each other. One of the project's successes has been
inspiring the government teachers to give their all for the improvement of the learning environment in the classrooms.
The evaluation team noted that the organization's sponsored teachers received training in lesson planning, active learning, classroom management, topic skills and knowledge, report writing, IT-based skills and knowledge, library usage and management, first aid, etc. Since these educators are disseminating students a top-notch education, technical sustainability can be assured in this regard. In a similar vein, it was
found that the local government and the partner school were the project's primary stakeholders. The project has sponsored 27 female teachers from four different Municipalities of Solukhumbu region in different partner schools, indicating that it has aided in the empowerment of women from diverse ethnic groups. There are five professional staff in total in the centre office located in Boudha; three of them are female and female representation is also seen in the Organization’s Board.
CITC Nepal, a non-governmental organization, made contributions to the field of education in very remote areas. The endeavour has been beneficial to both the community and the student. Funding for the project has come from Classrooms in the Clouds in West Kirby, Wirral, UK. The project's coordination with the Education office, Ward office, and Rural Municipality has been excellent. The initiative is admirable and pertinent to the country. The team believes that because of its successful efforts, CITC Nepal's future endeavours will eventually contribute to the advancement of the country'
These are taken from video interviews with parents and children regarding Menstrual Health:
Parent at Kanku Secondary School (Panchi Maya Rai):
In my young days, we couldn't afford pads, so we had to use old cloth rags. But now, CITC has done a great job by providing reusable sanitary pads that meet health needs. Compared to the past, students now have better facilities, and many positive changes are visible. Before, during menstrual emergencies, we had to leave classes in the middle and run home. Therefore, I feel easy these days. The pads are very good and washable and it protects female from uterine issues. As I grew older, I questioned why they never taught me about periods. There was no culture of discussing periods, and I never received any information about it.
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Student at Chheskam Secondary School (Ishana Kulung):
I experienced my first menstruation at the age of thirteen while in grade six. Unfortunately, my first period started while I was in class, staining both my clothes and the bench. I was unable to do anything about it. Although I knew about pads, they were neither available in the market nor in school, nor were they distributed by any organization at that time. When I got home, I tore up bedsheets and made them into towels to manage my period. Since CITC began distributing reusable sanitary pads, I have been using them. They are easy to use and absorb well. The CITC teachers taught us to change the cloth every 2 to 3 hours. They provided a calendar to help us track our periods, allowing us to see when it started, when it would end, and how long it lasted. This made managing menstruation much easier.
Teacher at Bakhapalam Secondary School (Laxmi Pandey):
Yes I have been using it and I am liking the Pad very much. I would
like to thank CITCNepal for providing the reusable sanitary pads to our students and teachers. Although we use cloth rags at home to manage our periods, it is rare for parents to buy new and clean fabric for this purpose. However, thanks to CITC Nepal, students now have access to new and hygienic pads during their periods. I personally use them and find them very comfortable. Students now have the opportunity to use new cloth pads instead of old rags, allowing them to manage their periods more hygienically. In addition to this, the organization also provides underwear along with reusable pads, which is highly useful. We sincerely hope and request the organization to continue providing reusable pads.
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Values
Our Core Values shape what we do:
• Creating Opportunity for communities in need;
• Socially Aware – we will endeavour to source materials locally and utilise local labour as far as practically possible;
• Sustainable – we will work with local communities to understand and meet their needs, develop a long term, strong relationship and ensure their commitment to a project;
• Everyone Matters – we want to reach and influence those most in need and particularly to raise the expectations of women;
• Release Potential – we believe we can help children realise their potential, thereby improving their life chances;
• Maximise the use of Assets – we recognise the focal point a school provides for a community and we want the benefits from our building projects to be maximised by widespread community use.
Our Personal Values shape how we do:
• Passion – attract passionate people who make a positive difference to those in need;
• Pragmatism – aspiring to be the best whilst being realistic, practical and solution focussed;
• Cultural Empathy – being interested in people and cultures, displaying empathy and embracing diversity;
• Openness to Experience – receptive to learning opportunities, seeking out new experiences and taking a broad view. We are a long term partner of school communities;
We are increasing our emphasis and support for women and girls in education ;
We are developing the building blocks of education by improving the early years teaching in terms of the built environment, skills and resources.
Activities
We establish long-term partnerships with the schools we support operating in a culturally empathetic way. Specifically we:
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Build classrooms in existing schools;
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Sponsor female teachers give professional development and mentor/support progress;
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Take measures to reduce gender inequality such as menstrual health training, clean water, gender specific toilets and empowerment of women initiatives.
• Responsibility – self-disciplined, taking ownership of issues and problems and leading by example;
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Achievements and performance
Due to the generosity of so many people and organisations, income generation has been strong in 2025. The main financial supporter of CITC remained behind CITC through all the challenges and underpins the ambitions of the team. A project at the village of Lukla dominated the building work in both 2024 and into 2025. The 1[st] phase built a fully resourced Learning Centre (a super library), toilets, provide clean water and photo voltaic power with battery back-up. This phase of the project extended to include a similar learning hub at both Shree Hunga and Shree Garma. They are ‘super’ libraries fully resourced for the relevant age ranges and with Interactive Computer Boards with approved education software. In 2025 they were in full use by students and the local community
The 2[nd] phase was to complete the work on a 2 storey, 6 classroom build at Shree Lukla that was officially opened in February 2025.
Shree Lukla has consistently improved the education opportunities for children and is now a high performing school. Parents realise this school can match the best of the private schools in Kathmandu. Class sizes can be over 40 children
in classrooms of just 20m[2] . The new classrooms are large, light and airy and very well insulated which is needed at over 2800m. All the early years children occupy the new classrooms.
A significant feature of the project is the full involvement of the local Municipalities who are responsible for education in their area. Each has made a contribution of over 20% of the value of the projects which underlines the commitment they make for their children and true community ownership.
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Teacher Sponsorship and Development
2025 saw the teacher sponsorship continue with 27 female teachers at 13 locations supported by 4 female Education Support Leaders (ESLs) working in a peripatetic role. In the schools where these teachers work, the school will have agreed to introduce grade teaching to replace subject teaching in the early years. It is widely accepted across the international community that grade teaching is a much more effective approach in the early ears to child learning with an emphasis on an activity based approach. The sponsored teachers will work with government teachers in this regard meaning the influence of these new methods extends beyond just the sponsored teachers. As these practices become embedded, the benefits begin to show and the school leadership and school community fully embrace this new approach. So much so that local Municipalities begin to promote this way of learning in further schools.
CITC sponsored teachers receive continuous
development and training and many go on to pass their BEd and are successful in the government teacher exams. It is a sign of success to lose a sponsored teacher which in turn gives another opportunity for an aspiring woman.
visits. They are active in ensuring any CITC building projects are properly maintained and used as planned. They guide and mentor teachers and deliver much of the annual training programme.
ESLs, supported by local CITC sponsored teachers, deliver the menstrual health management (MHM) programme across the lower Solu Khumbu. Whilst this is aimed at adolescent girls, many other female members of the community attend that indicates how this is an area of concern. The CITC sponsored teacher naturally becomes the ‘go-to’ person should a female student have any worries or concerns. Over time this has developed a greater awareness of the challenges faced by female students and some schools now provide a rest area specifically for female students should they suffer any discomfort or distress.
The reusable menstrual health kits distributed freely by CITC to female students are made locally at 4 ‘micro-industries run by local women.
CITC ESLs build strong relationships with the school leadership through their regular school
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Over the past 3 years there has been a programme of training and resourcing in the Early Childhood Development (ECD) classrooms that has been led by the ESL team. 6 classrooms have been fully resourced and teachers trained, and 9 classrooms have received workbooks and support with low cost/no cost materials and training. The aim is to fully resource 2 ECD’s per year.
CITC supported ECD classrooms are generally well organised and teachers working hard to absorb the Nepal government’s emphasis on play-based and child-centred learning as reflected by the ESL’s teaching approach. Whilst some classrooms have fully embraced play-based approach where children are engaged in a variety of child led activities based around a theme, some of the teachers still rely on a teacher led approach albeit using child friendly resources. The CITC ECD training in April 2026 will seek to address this through supporting a deeper understanding of how children learn and why it is important to support children’s social, emotional, physical and cognitive development in the classroom.
When Trustees visited many of the schools in 2025, they found engagement with CITC teachers in the schools visited was inspirational. With 2 teachers sponsored in grades 1 - 3 per school, it was clear that the CITC teachers were working together with the non-CITC sponsored teacher to share skills, good practice and resources. Lessons plans were evident in the classrooms and themes, aims and objectives clearly demonstrated in the lessons. The ESL impact was visible in the delivery of ‘Jolly Phonics’ and the effective use of resources and active learning. Management of resources, use of the libraries, group teaching and effective behaviour management all lent themselves to a vibrant, purposeful atmosphere of teaching and learning in the Primary grades.
Teacher training planned for April 2026 will address learning to read with Jolly Phonics, integration of art into everyday lessons and a reflective approach to teaching and learning to advance the professional development of the CITC teacher.
Overall, the ECD classrooms are now a world away from the drab, unfriendly environments, focused on teaching numbers and letters, witnessed 5 years ago. Where the full resource and training package has been delivered by the ESL’s, classrooms are working extremely well.
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CITCNepal – The NGO Team
CITCNepal employs Samden Sherpa as their Director of Partnerships and Governance, 4 peripatetic Education Support Leaders and a finance officer based in Kathmandu. Roles include the professional development of sponsored teachers, monitoring and reporting on children’s progress in supported schools, liaison with education officials and NGOs at a national, regional and local level and overseeing building projects.
CITC has created gradual ‘shift of power’ from Trustees enabling the NGO led by Dawa to exert more influence on the direction of the charity and responsibility for the day-to-day operations. This is apparent with the 4 ESLs and Director of Partnerships and Governance are well known and respected by school leadership teams. Trustees support and mentor them on occasions but it is a case of adding value rather than directing.
School Principals appear comfortable in the relationship with the NGO team and value their efforts. Whereas a few years ago the team may have been ‘tolerated’, now they are seen as a force for good. This extends to local political leadership where Samden has created a strong relationship with Municipality and Ward leaders. Not only does this relationship create better outcomes for children’s education, it also produces hard cash with the education bodies willing to contribute to CITC projects. There are also early signs of Municipality leaders wanting to take the practices established and supported by the NGO team and sponsored teachers to other schools in their area.
Fundraising
Corporate Fundraising ;
Hengistbury Investment Partners LLP
Charitable Trust continue to be incredible supporters of the work in schools in Nepal.
International Support
Sally, Jack and the team led the 2025 Asia Bookroom's Giving Tree appeal raising an incredible £11,220 (over $22,400 AUD). Asia Bookroom, an Australian specialist in Asian antique and contemporary books, as well as rare maps, prints, and photographs, owes much of the Giving Tree’s success to its generous customers.
The funds sponsor a dedicated Grade 3 teacher at Shree Sagarmatha School in Bung. The support also contributes to CITC’s wider teacher training and development programme, helping to enhance the professional skills of CITC’s network of sponsored teachers.
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Scouts
Led by Howard Ball, The Melton Mowbray Scouts 'Spirit of Nepal' group trekked through the Solukhumbu region and experienced life in rural Nepal first-hand, the Scouts gained a deeper understanding of the country’s rich and diverse culture and how young people live across the globe.
Inspired by this unforgettable experience, the group completed their fundraising and went well beyond expectations. They smashed their original target, raising a fantastic £12,500. This incredible achievement will not only fund the new library at Shree Chheskam, but also provide additional support for the menstrual health programme.
Joint fundraisers ;
A team from the
Fundraising Trek
In November 15 incredible trekkers visited 5 of CITC's projects and visited Namche Bazaar where they experienced the incredible views of the peaks including Mount Everest. At each of the schools they received an amazing welcome from the children and members of the local community, before be shown the facilities that CITC has provided. As a group they raised over £25,000 that will allow CITC to continue to make a difference to education in the lower Solu Khumbu.
The impact this trip had is best summarised by one of our trekkers. "It was one of the most enriching experiences I have had…from being awed by the Himalayan Mountains to being humbled by the generosity of spirit of the children and teachers in the schools. And the amazing guides and porters who look after you so well. I loved every minute!
Alitigation section of Latham Watkins undertook a trek in the Alps that was created by CHX Challenge. In doing so they raised funds for CITC. Maybe the Himalayas next?
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Funds Sent Directly to the CITC NGO in Nepal
CITC places great value on local communities 'owning' projects and expects a significant contribution to a building project. In 2025 the Khumbu Pasang Lhamu Rural Municipality, the Dudhkoshi Rural Municipality and the Sotang Rural Municipality funded 20% of the development work around the Shree Lukla, Shree Garma and Shree Hunga projects respectively with a value of £28,596.23 . They also provided funds in support of the sponsored teachers to the value of £8668.35 . The NGO also received money directly from some of our supporters to the value of £1609.54 . Finally, the Nepali NGO Board Members, in addition to their voluntary support running the NGO, make a financial donation amounting to £485.63 in 2024. In total, the projects in Nepal delivered by the NGO team benefitted from £3989.85 in 2025 on top of the sums from the CITC UK account.
Trustees/Supporters/Volunteers
CITC is fortunate to have a number of people who make visits to Nepal to maintain strong relationships with the NGO, take part in individual projects and ensure funds are used wisely and efficiently. All travel at their own expense to Nepal as part of their personal commitment. As much as possible of materials, goods and services are purchased within Nepal to create further benefit to the low income country. This all contributes to CITC being highly efficient in terms of the ratio of funds spent directly on projects in Nepal.
A ‘gradual’ power shift has been encouraged enabling the NGO led by Trustee Dawa Sherpa to exert more influence on the direction of the charity and responsibility for the day-to-day operations. Trustees visiting and
communicating with Nepal now reflect that in their approach. The 4 ESLs and Director of Partnerships and Governance are well known and respected by school leadership teams. Trustees are able to support and mentor them on occasions but it is a case of adding value rather than directing.
School Principals appear comfortable in the relationship with the NGO team and value their efforts. Whereas a few years ago the team may have been ‘tolerated’, now they are seen as a force for good. This extends to local political leadership where Samden Sherpa has created a strong relationship with Municipality and Ward leaders. Not only does this relationship create better outcomes for children’s education, it also produces hard cash with the education bodies willing to contribute to CITC projects. There are also early signs of Municipality leaders wanting to take the practices established and supported by the NGO team and sponsored teachers to other schools in their area.
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The attached financial statement shows that the money held by CITC in December 2025 in the UK was £ 159,306.38.
Reserves Policy
The Trustees have identified the appropriateness of establishing a defined reserve policy for the charity. The purpose of a reserve policy is to help ensure that the long term objectives of the charity can be met with some form of financial security.
A Reserve Fund has been established as an amount sufficient to maintain ongoing operations and programmes for 12 months . The Reserve Fund serves a dynamic role and will be reviewed and adjusted in response to internal and external changes. The target minimum Reserve Fund is equal to £100,000 representing 12 months of operating costs averaged over the last 2 years.
Funding Reserves
Trustees of Classrooms In The Clouds agree that the Reserve Fund will be established by designating £100,000 from restricted funds as the beginning balance. Trustees will consider the size of the Reserve Fund annually.
Investing Reserves
The Reserve Fund will be funded and available in cash or equivalent funds in accordance with the risk preferences, liquidity needs and investment objectives of the charity. The reserves will be comingled with the general cash accounts of the charity but segregated in financial reporting.
consistent with the purpose of the reserves as described in this Policy having:
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Analysed the need;
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Considered other funding sources; and
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Created a plan for replenishment.
The Treasurer is responsible for ensuring that the Reserve Fund is maintained and used only as described in this policy.
Safeguarding
CITC has a comprehensive Safeguarding Policy approved by Trustees. This policy is brought to life in Nepal through regular training and systematic reporting. The policy is overseen by the CITC Education Advisor.
Safeguarding is a standing item on the agenda of the monthly management committee meeting. The opportunity is taken to raise issues of concern and how they have been or are being dealt with. To date, issues documented have been of a lower level of concern and remedial action taken by the relevant school leadership with guidance from CITC ESLs.
Using Reserves
Trustees will identify reasons for accessing the Reserve Fund and confirm that the use is
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Structure, Governance and Management
CITC is governed by its Constitution dated 2 August 2007. In 2017, CITC completed its registration with the Charity Commission for England and Wales. A new company limited by guarantee (Company Number 10471484; Charity Number 1170522) was created. Classrooms In The Clouds Nepal is a registered NGO in Nepal.
In 2025 the total number of trustees was 9. All Trustees will resign at each AGM where each shall then be eligible for re-election. In addition, Trustees may be added at any time with the consent of the Management Committee, provided there are never any more than 7 members of the Management Committee. The Trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
The trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards. This requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period.
In preparing these financial statements, the trustees are required to:
• select suitable accounting policies and then apply them consistently; • observe the methods and principles of the Charities SORP
• make judgements and estimates that are reasonable and prudent;
• state whether applicable accounting standards have been followed, subject to any departures disclosed and explained in the financial statements; and;
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the charity and enable them to ascertain to ensure that the financial statements comply with the Charities Act 1993, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the constituting deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In the interest of transparency and accountability to our donors we publish our annual report, accounts and impact report on the website. The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
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The table below outlines the governance processes followed by CITC:
| Organisation/Role | Who | Responsibility |
|---|---|---|
| Classrooms in the Clouds | Trustees | Executive Responsibility for CITC strategy includingfinancial decisions andpartnerships |
| Classrooms in the Clouds Nepal | NGO Committee |
Delivery and supervision of Projects as agreed byCITC ‘on the Ground’ |
| Classrooms in the Clouds | Trustees | Responsible for meeting the legal requirements of a registered charity |
| Classrooms in the Clouds Nepal | NGO Committee |
Responsible for meeting the legal requirement of a Nepal registered NGO |
| Classrooms in the Clouds | Trustees | Delivering the CITC fundraising strategy and developing relationships with donors and supporters based on integrity, respect and transparency |
| Classrooms in the Clouds Nepal | NGO Committee |
Promoting the aims and objectives of CITC with visitors to Nepal to encourage additional supporters |
| Classrooms in the Clouds | Trustees | Develop systems and procedures to ensure due diligence of all spending and other matters in order to maximise charityeffectiveness |
| Classrooms in the Clouds Nepal | NGO Committee |
To support CITC by working within their systems andprocedures |
| Classrooms in the Clouds | Trustees | To receive and carefully consider petitions and other requests and examine them against local need and charity aims |
| Classrooms in the Clouds Nepal | NGO Committee |
To support the decision making process of CITC by providing timely, relevant and thorough background information onpetitions received |
| Classrooms in the Clouds | Trustees | To make their project decisions on a sound financial basis |
| Classrooms in the Clouds Nepal | NGO Committee |
To deliver projects within the financial assumptions of CITC and report any indication of variances against the agreed plan |
| Treasurer | To advise on all matters relating to finance and take all reasonable measures to ensure local/international financial rules are followed |
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Future Plans
Set out below are details of our medium and longer term goals. Undoubtedly their achievement is going to be subject to the ongoing return of the West to more normal conditions and positive economic factors. The Trustees are aware of the potential need to reconsider whether some of these goals are realistically achievable. By 2026 we plan to reach more children by:
• Being recognised as an effective, sustainable and passionate charity;
• Attracting regular, significant donation;
Specifically target improvements in the quality of early years education;
• Refine our monitoring and evaluation processes to provide robust evidence of the success of our projects.
• Ensure that we enhance our communication to supporters around the world and make our annual financial reports available to anyone who would like to see them.
• To grow CITC so it can support multiple projects across the Himalayan region of Nepal;
- Attracting corporate partners;
• An infrastructure in Nepal that is efficient and sustainable with a CITC base in Lukla;
• Being able to complete 1 building project every 18 months typically providing 6 new classrooms;
• Where necessary, projects will include gender specific toilets and clean water as part of our support for women and girls;
• By 2025, sponsor up to 30 teachers a year, supporting with training;
• ‘Cluster’ CITC supported activity to foster an atmosphere that encourages professional development and self-achievement;
• Work where appropriate with other NGOs who support our aims and objectives;
• Develop health and well-being initiatives where they can be shown to support our education ambitions;
• Build a core funding base from corporate donations and ‘committed givers’ supplemented by individual fundraising events and activities; and
• Establish a regular programme of treks in the area supported by CITC in Nepal that promote Fundraising for children’s education.
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| Trustee Details Name |
Position | Address |
|---|---|---|
| *Michael Hagen | Chair Trustee | **18 Sandlea Park, West Kirby, Wirral, CH48 0QF |
| Sarah Hagen | SecretaryTrustee | 18 Sandlea Park, West Kirby, Wirral CH48 0QF |
| David Thomas | Treasurer Trustee | 22 Park Close, Oakley, Hants RG23 7LE |
| Dawa Geljen Sherpa |
Trustee/President CITCNepal |
Kathmandu |
| Alex Waller | Trustee | c/o Cheshire FRS HQ, Winsford, CW7 2FQ |
| Lawrie McLaren | Trustee | Avenue Des Fleurs 22, Woluwe-St-Pierre, B-1150, Belgium |
| Annette Roberts | Trustee | 7 Carr Holme Gardens, Cabus, PR3 1LY |
| Catherine Owen | Trustee | 2 Herrick Road, Scunthorpe, DN17 1NN |
| Sally Sixsmith | Trustee | c/o St. George’s CoE School, St. George’s, London Road, Telford TF2 9LJ |
Principal Officer; *Charitable Company registered address
Approved by order of the board of trustees on 7 June 2026 and signed on its behalf by:
M Hagen - Trustee
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Independent Examiner's Report to the Trustees of Classrooms in the Clouds
Independent examiner's report to the trustees of Classrooms in the Clouds ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2025.
Responsibilities and basis of report
As the charity's trustees of the Company (and also 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 your charity's accounts as 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 your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a member of the 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:
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accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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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
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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.
E E Marshall-Birks FCA
Marshall Accountancy Ltd St Mary's House Crewe Road Alsager Stoke-On-Trent ST7 2EW
Date: .............................................
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Statement of Financial Activities for the Year Ended 31 December 2025
| Unrestricted fund Notes £ INCOME AND ENDOWMENTS FROM Donations and legacies 2 - Investment income 3 - Total - EXPENDITURE ON Charitable activities 4 Education projects - NET INCOME/(EXPENDITURE) - RECONCILIATION OF FUNDS Total funds brought forward - TOTAL FUNDS CARRIED FORWARD - |
Restricted fund £ 280,392 3,155 283,547 284,791 (1,244) 157,326 156,082 |
2025 Total funds £ 280,392 3,155 283,547 284,791 (1,244) 157,326 156,082 |
2024 Total funds £ 256,432 1,671 258,103 298,757 (40,654) 197,980 157,326 |
|---|---|---|---|
The notes form part of these financial statements
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Balance Sheet 31 December 2025
| Unrestricted fund Notes £ CURRENT ASSETS Cash at bank - CREDITORS Amounts falling due within one year 9 - NET CURRENT ASSETS - TOTAL ASSETS LESS CURRENT LIABILITIES - NET ASSETS - FUNDS 10 Restricted funds TOTAL FUNDS |
Restricted fund £ 159,306 (3,224) 156,082 156,082 156,082 |
2025 Total funds £ 159,306 (3,224) 156,082 156,082 156,082 156,082 156,082 |
2024 Total funds £ 160,526 (3,200) 157,326 157,326 157,326 157,326 157,326 |
|---|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2025.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2025 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
-
(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
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(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 7 June 2026 and were signed on its behalf by:
M Hagen - Trustee
The notes form part of these financial statements
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Notes to the Financial Statements for the Year Ended 31 December 2025
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, 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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
Financial reporting standard 102 - reduced disclosure exemptions
The charitable company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':
- the requirements of Section 7 Statement of Cash Flows.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Computer equipment
- 33% on cost
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.
continued...
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Notes to the Financial Statements - continued for the Year Ended 31 December 2025
2. DONATIONS AND LEGACIES
| Donations 3. INVESTMENT INCOME Deposit account interest 4. CHARITABLE ACTIVITIES COSTS Education projects 5. SUPPORT COSTS Education projects |
Direct Costs £ 251,495 Finance £ 183 |
2025 £ 280,392 2025 £ 3,155 Support costs (see note 5) £ 33,296 Other £ 33,113 |
2024 £ 256,432 2024 £ 1,671 Totals £ 284,791 Totals £ 33,296 |
||
|---|---|---|---|---|---|
6. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 December 2025 nor for the year ended 31 December 2024.
Trustees' expenses
| 2025 | 2024 | |
|---|---|---|
| £ | £ | |
| Trustees' expenses | 927 | 901 |
7. OTHER FUNDS RAISED
Whilst these accounts provide details of the financial situation of the registered charity, they do not cover all the outcomes from the charity's fundraising efforts . CITC places great value on local communities 'owning' these projects and expects a significant contribution to a building project. In 2024 the Khumbu Pasang Lhamu Rural Municipality funded 20% of the development work around the Shree Lukla and funded the salaries of our sponsored teachers at Shree Lukla and Shree Kharikhola respectively with a value of £37,264.58. Donations direct to the NGO were received to the sum of £1609.54. The Nepali NGO Board Members, in addition to their voluntary support running the NGO, make a financial donation amounting to £115.98 in 2025. Finally other items resulted in income of £829.75. In total, the projects in Nepal delivered by the NGO team benefitted from £39,819.85 in 2025 in addition to the sums sent from the CITC UK account
continued...
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Notes to the Financial Statements - continued for the Year Ended 31 December 2025
| 8. TANGIBLE FIXED ASSETS COST At 1 January 2025 and 31 December 2025 DEPRECIATION At 1 January 2025 and 31 December 2025 NET BOOK VALUE At 31 December 2025 At 31 December 2024 9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Accruals and deferred income 10. MOVEMENT IN FUNDS At 1/1/25 £ Restricted funds Restricted fund 157,326 TOTAL FUNDS 157,326 Net movement in funds, included in the above are as follows: Incoming resources £ Restricted funds Restricted fund 283,547 TOTAL FUNDS 283,547 |
Computer equipment £ 2,057 2,057 - - 2025 2024 £ £ 3,224 3,200 Net movement At in funds 31/12/25 £ £ (1,244) 156,082 (1,244) 156,082 Resources Movement expended in funds £ £ (284,791) (1,244) (284,791) (1,244) |
|---|---|
continued...
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Notes to the Financial Statements - continued for the Year Ended 31 December 2025
10. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| Restricted funds Restricted fund TOTAL FUNDS |
At 1/1/24 £ 197,980 197,980 |
Net movement in funds £ (40,654) (40,654) |
At 31/12/24 £ 157,326 157,326 |
|---|---|---|---|
Comparative net movement in funds, included in the above are as follows:
| Restricted funds Restricted fund TOTAL FUNDS |
Incoming resources £ 258,103 258,103 |
Resources Movement expended in funds £ £ (298,757) (40,654) (298,757) (40,654) |
|---|---|---|
A current year 12 months and prior year 12 months combined position is as follows:
| Restricted funds Restricted fund TOTAL FUNDS |
At 1/1/24 £ 197,980 197,980 |
Net movement in funds £ (41,898) (41,898) |
At 31/12/25 £ 156,082 156,082 |
|---|---|---|---|
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Restricted funds Restricted fund TOTAL FUNDS |
Incoming resources £ 541,650 541,650 |
Resources Movement expended in funds £ £ (583,548) (41,898) (583,548) (41,898) |
|---|---|---|
continued...
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Notes to the Financial Statements - continued for the Year Ended 31 December 2025
11. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 December 2025.
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Detailed Statement of Financial Activities for the Year Ended 31 December 2025
| INCOME AND ENDOWMENTS Donations and legacies Donations Investment income Deposit account interest Total incoming resources EXPENDITURE Charitable activities Education projects Support costs Finance Bank charges Other Trustees' expenses Postage and stationery Sundries Travelling Administrative support Computer software and maintenance costs Independent examiners' fee Insurance Foreign currency losses Advertising and marketing Total resources expended Net expenditure |
2025 £ 280,392 3,155 283,547 251,495 183 927 532 95 36 28,800 1,146 824 742 11 - 33,113 284,791 (1,244) |
2024 £ 256,432 1,671 258,103 263,653 171 901 777 189 146 28,800 1,009 800 476 499 1,336 34,933 298,757 (40,654) |
|---|---|---|
This page does not form part of the statutory financial statements
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