## **Insert your logo here if Drukpa Trust Registered Charity, No: 1178756** # **Trustees’ Annual Report & Financial Statements for the Year Ended 31 March 2021** ## **Trustees** Jonathan Rose Annie Smith Di Cook Wendy Cornwell _Drukpa Trust Trustees’ Annual Report and Financial Statements Page_ _**1** of_ _**20**_ Drukpa Trust Tnjstees. Annual Report and Financial Statements Page 2 of 20 Drukpa Trust CIO **Trustees’ Annual Report for the Year Ended 31 March 2021** ## **Contents** |**1**|**Reference and Administration Details**|**Reference and Administration Details**| |---|---|---| ||1.1|Charity Name & Registration| ||1.2|Charity’s Addresses| ||1.3|Names of the Trustees Who Manage the Charity| ||1.4|Names of Advisors & Senior Members of Staf| ||1.5|Bank| |**2**|**Structure, Governance & Management**|| ||2.1|Type of Governing Document| ||2.2|Charitable Objects| ||2.3|Trustee Selection Methods| |**3**|**Activities**|| ||3.1|Statutory Declaration| |**4**|**Achievements & Performance**|| ||4.1|Outputs and Outcomes for the Charity’s Benefciaries| ||4.2|How the Public Have Beneftted| ||4.3|Contributing to Activities Run by Other Organisations| ||4.4|Trustee Development| |**5**|**Financial Review**|| ||5.1|Details of Any Funds Materially in Defcit| ||5.2|Policy on Reserves| ||5.3|Principal Sources of Funding and Outgoings| ||5.4|Remuneration of Trustees| ||5.5|Financial Status| ||5.6|Statutory Statements on Liabilities| |**6**|**Statement of Financial Activity**|| ||6.1|Independent Examiner’s Report on the Accounts| ||6.2|Statement of Financial Activities for the Year Ended 31 March 2021| ||6.3|Notes to the Accounts| _Drukpa Trust Trustees’ Annual Report and Financial Statements Page_ _**3** of_ _**20**_ Drukpa Trust CIO **Trustees’ Annual Report for the Year Ended 31 March 2021** ## **1 Reference and Administration Details** ## **1.1 Charity Name & Registration** ## **Drukpa Trust** The charity is a Charitable Incorporated Organisation, registration no: 1178756, registered with the Charity Commission on 13 June 2018. Drukpa Trust registration no: 1014948, registered on 15 October 1992 with the Charity Commission, transferred its afairs to the CIO during FY2018-19. The charity is registered with HM Revenue & Customs. ## **1.2 Charity’s Addresses** Administration: 114 Harvist Road, London, NW6 6HJ, UK e-mail: london@drukpa.org.uk website: www.dwls.org School Project Co-ordination, Sponsorship and Fundraising: 16A Oaklands Road, Bromley, Kent, BR1 3SL, UK email: info@dwls.org website: www.dwls.org ## **1.3 Names of the Trustees Who Manage the Charity** ## _**Role**_ Jonathan Rose Chair Annie Smith Deputy Chair Di Cook Treasurer Wendy Cornwell Trustee The following non-trustee served as an honorary officer Rachel Glynn Secretary ## **1.4 Names of Advisors & Senior Members of Staf** None _Drukpa Trust Trustees’ Annual Report and Financial Statements Page_ _**4** of_ _**20**_ Drukpa Trust CIO **Trustees’ Annual Report for the Year Ended 31 March 2021** ## **1.5 Bank** CAF Bank, 25 Kings Hill Avenue, Kings Hill, West Malling, Kent ME19 4JQ. ## **2 Structure, Governance & Management** ## **2.1 Type of Governing Document** Constitution – based on the Charity Commission’s model governing document for Foundation Charitable Incorporated Organisations, _ie:_ where the Trustees are the only Members of the charity. ## **2.2 Charitable Objects** As defined in Drukpa Trust’s Constitution (Governing Document): The charity’s objects (“objects”) are: - (a) to advance public education about and through the universal philosophy, tradition and practice of the Drukpa branch of Himalayan Buddhism among persons in the United Kingdom and elsewhere; - (b) to advance the education of the public, primarily children, in literacy, numeracy and other core subjects of the school curriculum by providing funding to build, resource and maintain educational facilities and to support educational processes in Himalayan countries and elsewhere; and - (c) to relieve poverty, sickness and distress around the world by providing financial help and assistance to those who are disadvantaged and in need of such assistance. ## **2.3 Trustee Selection Methods** There must be at least three charity trustees. There is no maximum number of charity trustees that may be appointed. In appointing Trustees due consideration is given to ensuring that the Trustees have, between them, the skills knowledge and experience necessary to manage the charity efectively and in accordance with charity law. ## **3 Activities** ## **3.1 Statutory Declaration** The Trustees of Drukpa Trust confirm that they have paid due regard to the guidance issued by the Charity Commission on public benefit in deciding what activities the charity should undertake. _Drukpa Trust Trustees’ Annual Report and Financial Statements Page_ _**5** of_ _**20**_ Drukpa Trust CIO **Trustees’ Annual Report for the Year Ended 31 March 2021** ## **4 Achievements & Performance** ## **4.1 Outputs and Outcomes for the Charity’s Beneficiaries** The school in Shey opened in 2001 with 88 students in nursery and lower kindergarten. Student numbers grew to 885 students in March 2021 (2020: 873). There were 429 girls and 456 boys. Of those, 229 (2020: 248) lived on the campus in purpose-built residences, 154 from remote valleys and nomad regions. Once the mudslide repair & seismic upgrade refurbishment of every residence has been completed, the total number of residential students will be able to increase again. After the winter of 2019-20, the school re-opened on March 2[nd] 2020, only to close again on March 8[th] due to the COVID-19 pandemic that had reached Ladakh. On-line classes began on March 25[th] , with each class creating a WhatsApp group for lessons. Between 20 percent and 30 percent of students were unable to take part online so those students received regular phone calls from teachers to assign projects. The 64 final year students were permitted back to school in October, living on site for intense revision sessions for six weeks prior to their Matriculation exams. The students had studied well during the lockdown and 100% matriculated from the school in early 2021, 53 with distinctions. This was the ninth year-group to leave and continues to build a strong academic reputation for the school locally. The school’s construction programme, due to start at the end of March 2020, was postponed until June, when the authorities permitted light construction work to commence. The mudslide repair and seismic upgrade programme could not continue however, but work was possible on the third and fourth new residential eco-shower buildings. No structural resident engineer from Arup was able to travel to the school. Thankfully the school’s gardens survived the lockdown as local staf were able to tend to them intermittently. The Visitor Centre received a few visitors in the latter half of the year, but Rancho’s Café did not open at all. The merchandise in the shop and donation boxes help to bring in revenue to support the facilities management maintenance programme and the Dragon Garden Landscape project. ## **4.2 How the Public Have Benefitted** Druk Padma Karpo is a ‘society school’, meaning it operates for the benefit of the community on a non-profit basis. Since the school receives no financial support from public authorities, it charges fees that are set at locallyafordable levels to cover running costs. However, some parents are unable to aford the fees and are supported by an international child sponsorship scheme. Drukpa Trust sponsors some of these disadvantaged students and mobilised £3,767 to support students during 2020-2021, (2019-2020 £16,076). Invoices for further payments were delayed owing to the COVID-19 pandemic. These payments will appear in next year’s accounts. At the start of the year (2020) 25 students were being supported by Drukpa Trust (2019, 42 students). 9 of these 25 students left school after successfully _Drukpa Trust Trustees’ Annual Report and Financial Statements Page_ _**6** of_ _**20**_ Drukpa Trust CIO **Trustees’ Annual Report for the Year Ended 31 March 2021** completing their matriculation exams in November 2020 and one student, whose sponsor was unable to continue, remained at the school supported by our sister charity Live to Love UK. During the latter part of the year (2021) 15 students were being sponsored by Drukpa Trust. ## **4.3 Contributing to Activities Run by Other Organisations** The school is governed by the Druk Padma Karpo Educational Society (‘DPKES’), a non-profit organisation. Drukpa Trust works closely with the school management in respect of the grants made for school construction, child sponsorship, educational resources and landscape programme. Vice-Principal Ms Mingur Angmo is supported by 36 teachers on the Shey campus, of whom 25 were Ladakhi, 8 Tibetan and 3 from elsewhere in India. They were assisted by 38 support staf and 6 administrative staf. A branch school in Khachey, in the Phokar valley, had 46 students, served by 7 teachers and two support staf members. Construction Manager Mr Sonam Angdus is supported by a permanent team of three and employs teams of carpenters, stone masons and labourers to match construction requirements each year. Drukpa Trust is in regular contact with school managers to receive updates on activities. Due to the COVID-19 pandemic no visits were made by Drukpa Trust to the school in Ladakh and instead increased the use of video calls. ## **4.4 Trustee Development** Trustees are encouraged to participate in development opportunities as and when appropriate. ## **5 Financial Review** ## **5.1 Details of Any Funds Materially in Deficit** The Charity has no funds which are materially in deficit. ## **5.2 Policy on Reserves** The Charity’s policy on reserves is to generate and maintain a balance which is sufficient to cover 6 months’ running costs to preserve the financial viability of the Charity in the event that unforeseen and/or unavoidable circumstance precipitate a short-term fall in its income. ## **5.3 Principal Sources of Funding and Outgoings** The principal sources of funding are from charitable trusts and individual donors. The outgoings are for the Druk Padma Karpo School project in Ladakh, India. _Drukpa Trust Trustees’ Annual Report and Financial Statements Page_ _**7** of_ _**20**_ Drukpa Trust CIO **Trustees’ Annual Report for the Year Ended 31 March 2021** ## **5.4 Remuneration of Trustees** All Trustees act in a voluntary capacity and receive no remuneration or other material benefits from their services to the Charity. Out-of-pocket expenses necessarily and reasonably incurred by Trustees in promoting the purposes of the Charity are reimbursed at cost. ## **5.5 Financial Status** Drukpa Trust’s current resources from unrestricted donations are more than sufficient to meet its outgoings for at least next year. All the indications are that this will remain the case for the foreseeable future. The trustees raised funds totalling £161,441 (2020: £231,021) and would like to thank all their supporters, both organisations and individuals, for the support they have given during the year. The trustees expended £105,297 (2020: £158,540) on activities. At the end of the year the trustees held unrestricted reserves of £195,841 (2020: £139,697). ## **5.6 Statutory Statements on Liabilities** The Trustees declare that: - The charity has given no guarantees where potential liability under the guarantee is outstanding at the date of this statement ( _e.g.:_ any outstanding/ongoing contract or legal undertaking to buy or provide specific services); - The charity has no debt outstanding at the date of this statement which is owed by the CIO and which is secured by an express charge on any assets of the CIO ( _e.g.:_ a mortgage on property owned by the charity); Approved by the Trustees and signed on their behalf, J Rose, Chair Date: 13 December 2021 _Drukpa Trust Trustees’ Annual Report and Financial Statements Page_ _**8** of_ _**20**_ Drukpa Trust CIO Trustees, Annual Report for the Year Ended 31 March 2021 Drukpa Trust Trustees, Annual Report and Financial Statements Page 9 of 20 Drukpa Trust CIO **Independent Examiner’s Report for the Year Ended 31 March 2021** ## **6 Statement of Financial Activity** # **6.1 Independent Examiner’s Report on the Accounts** ## **Report to the Trustees/Members of Drukpa Trust on the accounts for the year ended 31 March 2021 set out on pages 10 to 16** ## **Responsibilities and Basis of the Report** As the charity trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’). I report in respect of my examination of the Charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act. ## **Independent Examiner’s Statement** I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 1. accounting records were not kept in respect of the Trust as required by section 130 of the Act; _or_ 2. the accounts do not accord with those records. 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. Mark Beale FCA DChA Date 15 December 2021 _[Fellow of the Institute of Chartered Accountants in England and Wales Diploma in Charity Accounting]_ 1 Ewhurst Park Cottages Ramsdell, Hants RG26 5RG _Drukpa Trust Trustees’ Annual Report and Financial Statements Page_ _**10** of_ _**20**_ Drukpa Trust CIO Trustees, Annual Report for the Year Ended 31 March 2021 Drukpa Trust Trustees, Annual Report and Financial Statements Page 11 of 20 Drukpa Trust CIO **Statement of Financial Activities for the Year Ended 31 March 2021** ## **6.2 Statement of Financial Activities for the Year Ended 31 March 2021** _Drukpa Trust Trustees’ Annual Report and Financial Statements Page_ _**12** of_ _**20**_ Drukpa Trust CIO **Balance Sheet as at 31 March 2021** ## 6.2.1 **Balance Sheet at 31 March 2021** ## 6.2.2 **Approval of the Board of Trustees** These accounts were approved and signed on behalf of the trustees by: J Rose, Chair Date: 13 December 2021 _Drukpa Trust Trustees’ Annual Report and Financial Statements Page_ _**13** of_ _**20**_ Drukpa Trust CIO **Trustees’ Annual Report for the Year Ended 31 March 2021** D Cook, Treasurer Date: 13 December 2021 _Drukpa Trust Trustees’ Annual Report and Financial Statements Page_ _**14** of_ _**20**_ Drukpa Trust CIO **Notes to the Accounts for the Year Ended 31 March 2021** ## **6.3 Notes to the Accounts** ## **1 Accounting Policies** ## **.** The accounts have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (efective 1 January 2015) - (Charities SORP FRS 102) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) (September 2015) and the Charities Act 2011. Significant accounting policies are: ## **Incoming Resources** Income is recognised when the charity has entitlement to the funds, when it is probable that the income will be received and that the amount can be measured reliably. ## **Cost of generating funds** These comprise costs directly attributable to fundraising events plus a reasonable allocation of support costs. ## **Charitable activity costs** These represent costs that are directly attributable to an activity plus a reasonable allocation of support costs. ## **Grants payable** Grants payable are recognised as resources expended in the period in which the grant is approved if there is reasonable expectation that the grant conditions will be met and funds will be released. ## **Support costs** These comprise costs incurred in support of the direct charitable expenditure of the charity and are thus an integral part of the cost of carrying out the charitable objects. These are allocated to activities based on the time spent on each activity. ## **Allocation of costs** All costs are allocated against the fund to which they relate. Costs that _Drukpa Trust Trustees’ Annual Report and Financial Statements Page_ _**15** of_ _**20**_ Drukpa Trust CIO **Notes to the Accounts for the Year Ended 31 March 2021** cannot be identified to a specific fund are allocated across funds using appropriate apportionment methods based on the fund’s use of the relevant costs. ## **Capitalisation and depreciation** Equipment costing over £500 is capitalised and included on the Balance Sheet as a fixed asset. Depreciation is charged at rates that are estimated to write of cost in equal annual instalments over the useful life of the asset. ## **Restricted funds** These represent income received that is subject to restrictions for use by the donor that are narrower than the charity’s general objects. ## **Designated funds** These represent funds set aside by the Trustees for specific purposes within the charity’s general objects. _Drukpa Trust Trustees’ Annual Report and Financial Statements Page_ _**16** of_ _**20**_ Drukpa Trust CIO Notes to the Accounts for the Year Ended 31 March 2021 2 Donations 2021 Donations from= Indiwduals 211175 Grants >.014 Trusts 12.367 223,542 7,349 151,317 Gift Aid reclaimed Total (>)nations 373 ndityre 3)21 Oirect Artivi G[￿ts C05t Aw¥ded Su rt Costs TOTAL TOTAL Ralsln8 Funds 9.970 5,713 15.553 cha￿t￿leACtIVkIeS Druk Padrna Karpo S(hool Drukpa Humanitarian 10.852 7&762 &).614 142.123 Total Resour58s Expendod 20.823 7&762 5.713 I(6,￿7 4 0irertO£ti Costs staff Costs Legal Fees Travel Overseas Travel UK Bank Charges Audit of Grant5 Sthool Equiptnent bought in UK Architert's Costs Cotntnunications Computerg)ftware Printing Postage & Stationery Sundry Total C4rettAcrl7Aty Costs .&32 .037 17341 3.310 925 Drukpa Trust Trustees, Annual Report and Financial Statements Page 17of20 Drukpa Trust CIO Notes to the Accounts for the Year Ended 31 March 2021 3767 74.9 Ir6kntukncr6 Tdeth)W&JThYry TrJA Co*siK 14) 57]3 T￿ew￿ I13UI 11 [￿r￿)n er￿￿0￿￿1￿17rxJtt￿seW. GftAd P*cav&le Ta¥*On￿￿￿ &oJity L116 Drukpa Trust Tnjstees. Annual Report and Financial Statements Page 18 of20 Drukpa Trust CIO Notes to the Accounts for the Year Ended 31 March 2021 Tota Ca in Ii>KI CreditoE ArnrtsfaiIr¥JdLEwthn￿5 ILC8)) IL(0 ILK Prqefts ]tN i&fA478 U147 l]CQ2 14 M4 irnMr&L (Xlll.Nil} FXOMSLK) isfT&fOrCw¥*"￿TaX￿ttE(h*ityl$*etodarnfLll 4&Lty￿"0n. Drukpa Trust Trustees, Annual Report and Financial Statements Page 19 of 20 Drukpa Trust CIO **Notes to the Accounts for the Year Ended 31 March 2021** ## 15. **Comparative fgures** The SORP requires comparative figures to be shown for restricted and unrestricted income for the prior year. _Drukpa Trust Trustees’ Annual Report and Financial Statements Page_ _**20** of_ _**20**_