The Gurkha Welfare Trust Annual Report & Accounts 1 July 19 - 30 June 20 CONTENTS

THE

THE GURKHA WELFARE TRUST ChAPTER

Annual Report and Accounts Trustees’ report incorporating the Strategic Report 3-27 Year ended 30 June 2020 Statement of Trustees’ Responsibilities 29

Trustees, officials and advisors to the Trust 30

Company Limited by Guarantee Number: 05098581 Registered Charity Number: 1103669 Auditor’s report to the members and Trustees 32-33

Registered Address Consolidated statement of financial activities 34 P.O Box 2170 22 Queen Street Consolidated and Charity balance sheet 36 Salisbury SP2 2EX

Consolidated cash flow statement 38

www.gwt.org.uk Notes to the accounts 41-63 [email protected] 01722 323 955

The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 1 TRuSTEES’ REPORT fOR ThE YEAR ENdiNG 30JuNE 2020

This report is drawn up in accordance with applicable accounting standards, including the Charities (Accounts and Reports) Regulations 2008 and the requirements of the Statement of Recommended Practice (SORP), “Accounting and Reporting by Charities” issued in 2015 and the Companies Act 2006.

STRUCTURE, provides advice on statutory The finance Committee, a sub- entitlements and guidance on committee of the Board with GOVERNANCE welfare support available to ex- approval to make decisions on AND MANAGEMENT Gurkhas in uK who find themselves the Board’s behalf is, among in need. A subsidiary office is other responsibilities, tasked located at Aldershot in support with setting salary levels of key TRuST STRuCTuRE of a major ex-Gurkha settlement. personnel. in setting these salary levels consideration is given to The Trust has a wholly owned The Gurkha Welfare Trust’s benchmarking with equivalent trading subsidiary, GWT Trading (GWT or Trust) headquarters roles in the wider industry. is in Salisbury, Wiltshire. Limited, whose accounts are consolidated in the group following an initial review of in Nepal, the GWT is located in financial statements. policies and procedures with Pokhara, West Nepal. it oversees The Charity Governance Code in and directs the activities of the december 2017, the Trust has Trust’s network of 19 Area continued to progress and embed Welfare Centres (AWCs) sited in TRuST GOvERNANCE as best practice. Trust Quarterly key locations throughout areas The Trust was established by Trust KPi trend data is regularly of traditional Gurkha recruitment reviewed by Trustees, and a in Nepal, one Centre in darjeeling, deed in November 1969 for the workstrand within Strategic india and two permanently relief of hardship and distress Review 2020, is assessing board manned smaller patrol basis. among Gurkha ex-servicemen of composition and Trustee Tenure. These AWCs provide the platform the British Crown and their A number of long-standing for the delivery of all Trust welfare dependants. it was re-constituted, Trustees’ appointments will be programmes as well as providing also by trust deed, in 1994. in brought to an end during 2020/21 a permanent footprint across the April 2004 the Trust became a in line with the Code. country to Gurkha communities. Charitable Company Limited by The AWC network has been Guarantee (CCLG). These restructured along geographical accounts amalgamate those of lines to create clusters based the unincorporated trust in TRuSTEE SELECTiON around five ‘key’ AWCs. These compliance with the Charity self-supporting clusters enable Commission’s uniting direction. The Governance committee, currently comprising a Chairman the multi-disciplinary Pensioner The development and execution and three Members, is Support Teams (PST) to operate of Trust policies is the responsible for oversight of and support beneficiaries with responsibility of a Board of Trustee selection. the proactive and mobile Trustees that meets three times delivery of both welfare and each year. Their agenda is in accordance with Charity medical assistance. it also allows supported by a number of Commission guidance on Trustee them to respond swiftly to subordinate committees that tenure, there is a steady turnover requests for support and to consider investment, governance, of Trustees. When a vacancy arises, react quickly to situations such audit and finance matters. a specialist recruitment portal is as natural disasters. The Board of Trustees are engaged to invite suitably qualified in the uK the Gurkha Welfare responsible for setting the candidates which are then Advice Centre, Salisbury (GWAC) strategic aims of the Trust. shortlisted by a GWT selection

The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 3 TRuSTEE’S REPORT TRuSTEE’S REPORT panel and the final candidate The role is based at hQ GWT(N) in the uK, the Trust works with vulnerable are able to live with OBJECTS ANd diagnosis or treatment and selected by panel interview. The in Pokhara, Nepal. the relevant Government dignity. Enhanced support is ACTiviTiES for the prevention of any appointment is then confirmed by The head of fundraising and departments and key service provided to beneficiaries living in disease or adverse conditions the Board. All Trustees follow a charities to enable the delivery our two Residential homes. in which may affect any such Communications leads the The Trust’s Objects are: generic training package to induct fundraising and marketing team of statutory and welfare advice addition, free primary medical care person: and them into the work of the Trust in the uK. to ex-Gurkhas and their is provided to all eligible individuals • To relieve either generally or and further role-specific training dependants seeking settlement. as well as subsidised secondary individually Gurkhas and their • Such other charitable purposes is sought for those that require it. healthcare treatment. details may dependants and other persons which are in the opinion of the This also includes visiting our be found on page 16-18. in Gurkha community areas, Trustees connected directly or iMPLEMENTiNG indirectly with the foregoing infrastructure and work in Nepal. vOLuNTEERS Community Aid is provided in the who are in conditions of need, purposes as the Trustees from details of Trustee retirements PARTNERS form of schools, accessible hardship or distress. People volunteer for the Trust time to time think fit. and recruitment may be found drinking water and medical camps. • To promote the education Many of our services in Nepal in a number of different ways. on page 30. are delivered in partnership with The impact of these activities can of Gurkhas, dependants and The Trust’s vision is: “Gurkhas Often members of the public raise be found on page 18-19. The The Trust was deeply saddened other organisations. other persons in Gurkha living with dignity”. Welfare funds on our behalf (community primary beneficiaries of these at the passing of its former community areas. support is delivered against The Trust builds rural water fundraisers), others offer to help activities are the general public. Treasurer david Clifford MvO and and sanitation projects in Nepal at Trust challenges and events. • To make provision for the the following priorities: our vice Patron, field Marshal assisted by an annual grant Some gain experience in the uK in addition, GWT has provided medical diagnosis and • The provision of support to the Government of treatment of Gurkhas and their The Lord Bramall of Bushfield KG provided by the British office by assisting with fundraising a Welfare Pension. GCB OBE MC during the period Government’s department for and marketing efforts and others Nepal’s COvid-19 response to dependants and other persons of this report. international development maintain a relationship with us assist the general public and in Gurkha community areas • The provision of (dfid) now renamed, following owing to their own longstanding regional government. who are in need of such welfare/emergency grants. its merger with the fCO, the association with the Brigade KEY MANAGEMENT foreign, Commonwealth and of Gurkhas. Their individual PERSONNEL development Office (fCdO). and collective effort and The Ministry of defence (MOd) dedication, often over many years, is appreciated enormously The Trust’s director is responsible continues to provide an annual by the Trust. We do not recruit for the day-to-day operation of Grant in Aid towards staff and volunteers to directly work the Trust. he directs and administration costs of the on project delivery in Nepal, coordinates the work of the GWT(N) in support of welfare apart from a few exceptional Salisbury headquarters and delivery. This enhances value for cases where it is part of a oversees the work of the Gurkha money for donors as it allows, in conjunction with investment funding commitment. Welfare Trust (Nepal) and the income, all donations to be spent Gurkha Welfare Advice Centres. directly on welfare projects. The director of the GWT(N) The MOd also provides £2.5M PuBLiC BENEfiT provides assurance on authority, annually as a contribution in responsibility and accountability support of the Trust’s healthcare The Trustees have given due for the delivery of welfare provision for veterans in Nepal. regard to the Charity Commission’s support in Nepal in accordance guidance on reporting public with Trust policies, as well as in Nepal, the Trust continues to benefit when planning the charity’s insight into the political dynamics work closely with the Kadoorie activities and are satisfied that of Nepal. in addition, he acts as an Agricultural Aid Association the Trust is fully compliant with interface between the Trust and (KAAA), which concentrates on the Charities Act 2011. the veteran community in Nepal. community aid and development, including bridge construction, Benefit to our beneficiaries can The field director of the GWT(N) the provision of potable water be assessed in two distinct areas in Nepal is responsible for daily supplies, hydro-electricity projects – individual and community aid: operational management of the and employment training schemes. Individual Aid, in the form of the GWT(N) and implementing Additionally, the Trust works in welfare pension, winter allowance, welfare support in accordance partnership with CAiRN in disability support grants, welfare with Trust policies. providing a new holistic approach grants and our earthquake The Medical director oversees to supporting education through resilient homes, is provided the Trust’s enhanced medical the provision of teacher and perennially to ensure that our and healthcare system in Nepal. librarian training. core beneficiaries and those most

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• The provision of medical The Strategic Review conducted Medical Information System our collaboration with the fCdO support: a free primary and presented to the Board on 16 This has been successfully for the provision of accessible healthcare scheme for September 2020 has identified a implemented but requires on- drinking water projects provided beneficiaries and subsidised continuing requirement for the going software development that by RWSP includes an element of hospital care. Trust’s welfare services to veterans continues to be implemented in disaster resilience. Consequently, in Nepal for the next 20–30 years. the programme has now been • The provision of water order to support the provision renamed the Resilience WASh and sanitation projects. The MOd’s commitment of £2.5M of bespoke data as part of the annually as a contribution in Trust’s enhancement of its and Emergency Preparedness • The running of two support of the Trust’s medical medical and healthcare system. Programme (RWEPP) to reflect Residential homes (Rh). services to Nepal based veterans the expansion of the Additional staff have been • A programme of building extends until 2029. programme’s objectives. recruited to ensure developmental 100 earthquake resistant Concept approval for the next resilience for our iT requirements. The 100 Homes Project: homes for beneficiaries. phase of RWSP delivery has fY 19/20 saw the second tranche • The building of schools and been approved by fCdO Medical Provision in Darjeeling spanning the next ten years, of 100 earthquake resilient homes community centres following the acquisition of a in two five-year periods. successfully delivered. A total of The Trust raises funds in support new AWC location both the AWC 110 homes were constructed. of welfare programmes involving and its medical centre have been The outstanding fundraising individuals and communities in entirely and successfully campaign in support of the 100 Nepal and also in an advisory THE STRATEGIC refurbished and were opened homes has been shortlisted for capacity in support of ex-Gurkhas REPORT in february 2020. a Third Sector Excellence Award. in uK. A two-year contract was signed in January 2020 with international Introduction of Physical TRuST STRATEGY SOS to provide professional and Functional Rehabilitation fuTuRE PROSPECTS The Trust defines it priorities in medical support to ensure that (P&FR): five-yearly increments, setting the necessary improvements to Both of the Trust’s Residential The Trustees are confident that parameters within which the medical provision replicate those homes (Rh) underwent there is a demonstrable need Trust can best respond to the successfully implemented in Nepal. conversions to support P&fR for activities delivered by the needs of ex-servicemen and their which is now being successfully Trust and that it can continue dependents. The most recent Implementation of the delivered. Additional staff have as a going concern. in response Strategic Review was presented Cluster system and mobile also been recruited to deliver to the global economic impact to the Board on 16 September approach to welfare delivery this new service. of COvid-19, Trustees have 2020 and extends to 2025. assessed the specific impact All five clusters are fully on the Trust and determined that, The priorities identified for operational supporting our despite some expected downturn fY2019/20 were: beneficiaries. fuTuRE PLANS in overall fundraising income, our approach to investment The continued Pensioner Risk Assessment The following objectives have and the robust reserve position, implementation of a wide- (PRA) been identified for fY2020/21: means that the Trust is able to ranging overhaul in the All PRAs have been conducted continue to operate with minimal Trust’s medical structure and and form the basis for a bespoke Delivery of planned Objectives impact on activity levels, and with delivery in Nepal level of service to our key and Programmes within the confidence as a going-concern The contractual period with beneficiaries. The PRAs are constraints of COVID-19 for the foreseeable future. international SOS in support of continuously monitored and There is a potential risk to the The Trust’s core beneficiaries, the development of our medical reviewed to ensure that they delivery of these programmes the Welfare Pensioners (WP), and healthcare structure in Nepal keep step with the evolving which the Trust is maintaining at numbered 4,119 as at 30 June concluded successfully on 30th requirements of our beneficiaries. pre COvid-19 delivery levels and 2020 with this figure reducing June 2020. budgetary forecast. by approximately 10% per year. Disaster Resilience A fully funded Constructive Recruitment of a new following the conclusion of a Human Resources (HR) Obligation (CO) exists to ensure Medical Director detailed disaster Preparedness A key requirement to create the continuing provision of a The recruitment for this post was policy we continue to enhance a foundation for a professional welfare pension to all recipients concluded with the appointment of our ability to respond to future hR function and to integrate until this obligation ceases. dr Gerda Pohl in September 2019. events. in addition, Phase vi of this throughout the organisation

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following the conclusion of the 2. The Trust has stress-tested reasonably effective, and the Government of Nepal approval to were mostly made through home pension could be paid into those Change Programme. This will our fundraising programme, cases identified were mostly operate our official-plated vehicle visits or at Patrol Bases. in order accounts on a monthly basis. include a detailed independent assessing the income received young, asymptomatic males. fleet for the provision of essential to ensure the financial security of With the advent of the monsoon salary review. A new hR Manager services. This assured our freedom our beneficiaries, we advanced immediately following The pre-emptive lockdown (during which over 250 have died in has been recruited to develop of movement, but staff still had extra month’s payments. We also lockdown re-working our contained the spread of the virus Nepal from landslides and floods), and deliver the hR function. to negotiate their way through encouraged a substantial number activities, and modelling and allowed the Government to the AWCs closely monitored local police checkpoints and locally of cash-paid pensioners to open disasters and investigated reports a range of future scenarios. build-up its capacity to handle erected barricades and community bank accounts so that their from pensioners. Implement and adapt to 3. Our global investment strategy the crisis. The number of daily checkpoints. All non-essential the conclusions of the which had recovered well cases duly reduced with the staff movement (visits, leave, Strategic Review against the global stock decreasing flow of returnees. transfers etc) was suspended. MONSOON SEASON following endorsement of the market falls in March 2020. As a result of this reduction and 2020 Strategic Review by Trustees, with the growing pressure to AWCs remained open throughout, This year the monsoon season in Nepal was deadly, with heavier At 30 June 2020, our investments the next steps work will include, open the economy, the but strict infection prevention rains than usual causing substantial flooding across the country. had recovered well resulting in but not be restricted to: Government announced a phased protocols were applied, and the an overall gain of £2.4M and total dozens of people were killed and many left missing following the lifting of the national lockdown AWCs shifted to operating a home • The AWC footprint fundraising income had exceeded rains which battered much of Nepal and northern india. The resulting on 21 July 2020. visiting service for the payment of the budget, increasing free floodwaters affected millions. Thankfully, there were no casualties • Medical Service pensions, medicine delivery and however, within weeks a second among the Gurkha community though many of their homes and reserves and further supporting welfare investigations, and • future proofing beneficiaries. and larger wave of new cases crops suffered in the rain. As always, we were there to support them. the decision to maintain levels providing telephone consultations occurred indicating clusters of of activity in 2020/21. and pharmacy distribution. Our own offices were not immune to the conditions. Our Area local transmission across the ACHIEVEMENTS Consequently, all our staff both country, making contact tracing The hQ staff in Pokhara worked Welfare Centre in diktel was the worst affected, left with superficial in Nepal and uK have been more difficult. Powers were largely from home, and damage to the building and without electricity or phonelines, AND PERFORMANCE retained to continue to deliver delegated to local authorities to successfully adapted to the use however our backup generators and satellite communications on our commitments with no re-impose lockdowns, which they of online tools and conferencing enabled the AWC to quickly re-commence operations. requirement for any furlough ThE COvid-19 duly did from early August. facilities to coordinate its efforts. or redundancy. To improve communications with Landslides affect our schools As at September 2020, ENviRONMENT our beneficiaries, a beneficiary- Two of our previous school projects, Shree Janajagriti Primary Prohibitory Orders were in effect facing website was created as STRATEGiC SuMMARY in over 35 districts, a total of School in Bhojpur and Shree himalaya hSS in Gorkha both suffered COvid-19 iN NEPAL well as facebook, messaging 46,257 cases have been reported substantial landslides. The new buildings we constructed for them platforms and a group SMS The Trust reacted swiftly to the and 289 deaths with COvid-19 had survived thanks to sound structural engineering, and repairs were in early 2020, Nepal only had service, all of which have been evolving COvid-19 situation and occurred. The number of cases is able to be made quickly. Thankfully no children were present – a handful of COvid-19 cases used to good effect. has complied with uK, Nepal still increasing. Sadly, one veteran with the school closed for the rainy season. imported from abroad. On 24 and indian Government in Pokhara has passed away as a All Projects (RWSP, Schools and March 2020, the Government guidelines and guidance result of the virus and a number 100 homes etc) were initially Our resilient team throughout the pandemic. imposed a pre-emptive, nation- of veterans and their wives have suspended. however, they re- wide lockdown which remained Though we can predict that a monsoon season will occur in Nepal Supported by several factors, been infected. started in April following a in place for four months, with every year we can’t predict the severity with which it strikes. the Trust was able to take the relaxation in the lockdown to allow only limited relaxations permitted Our team are equipped to deal with every eventuality and have decision at the 6 May 2020 Board development projects to continue. during this time. All flights and all-terrain vehicles and off-road motorbikes at their disposal. meeting to maintain our support Since the lockdown in March, public transportation were GWT’S OvERALL Where the rain continues for 24 hours or more, we aim to reach to beneficiaries in Nepal at pre GWT has conducted 1,094 field suspended and all travel between out to all of our most vulnerable Gurkha veterans and widows – COvid-19 levels and agree the RESPONSE deployments, during which 4,456 districts was minimised and either via satellite phone or by visiting their homes, to ensure budget for 2020/21. beneficiaries have been visited. controlled. The steady rise in Although the lockdown announced that they are safe. The factors supporting this COvid-19 cases during this initial on 23 March 2020 came as a decision to not reduce any Emergency call lockdown was mainly attributable surprise, GWT had planned for iNdividuAL Aid element of the Trust’s work in to the thousands of Nepali this type of scenario. The key was After receiving a phone call from one of Welfare Pensioners, Nepal were: workers returning from india to ensure that we could continue Khilprasad Rai, our teams from his nearest Welfare Centre 1. Through prudent management, through designated land border to provide essential services Welfare and Pensions (Bhojpur in the east of Nepal) responded immediately. his home the Trust has robust free points and being placed into (financial, medical and welfare) to GWT maintained its programme had been partially destroyed by a landslide and it was not safe reserves exceeding 12 months hastily established quarantine our beneficiaries in a way that was of welfare pension payments for him to stay there. Our local Area Welfare Officer recorded all routine expenditure and is centres across the country. safe and also protected our staff throughout the crisis. Cash the damage and took him to the safety of his son’s house nearby. therefore able to absorb a At the peak, these quarantine and beneficiaries alike. With the payments in AWCs were Better than repairing the damage, this year we built him a new potential reduction in income centres housed 175,000 returnees. assistance of the British Embassy, conducted on a “no-contact” earthquake-resilient house – somewhere safe to call home. in the near term. Contact tracing of new cases was the Trust quickly received basis for local WPs, but payments

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Medical those who could not easily access claims was also resumed from Residential Homes given respite at home for a week COMMuNiTY Aid the AWC or pharmacies. Since the around mid-May and pensioners every four – six weeks, and on At the start of the national Our Residential home in dharan start of the lockdown, over were granted an extra three return are directed to wear PPE lockdown, all AWCs switched to was “sealed” in the last week of 20,000 telephone consultations months to submit their claims. for two weeks. telephone consulting only and April (just before the first local Rural Water and The number of claims has now “no contact” dispensing at AWCs were conducted and out of over case of COvid-19 was confirmed). This has meant that the residents Sanitation (RWSP) returned to normal levels. with strict screening at AWC entry. 19,000 sets of medication The home in Kaski was similarly can enjoy a fairly normal life, Projects Key AWC medical staff called all dispensed, almost 3,000 being AWC teams educated pensioners “sealed” in early June. All staff with staff interacting freely and Our water projects were delivered at home. A further 430 and families on infection (including kitchen staff) live in, arranging social events frequently patients with appointments to temporarily suspended at the home visits were conducted for prevention and how to access residents do not leave the to relieve boredom. Residents explain this and doctors provided beginning of the lockdown. examinations and procedures. have benefitted from online advice, prescriptions, and testing. Pensioners diagnosed premises and no visitors are The deployed staff and their connections with families. referrals over the phone. detailed in the first two months of with COvid-19 are monitored allowed (except for essential labourers were left on site in guidance was issued to ensure lockdown, pensioners were closely by the GWT doctors and visitors wearing full PPE, such Both Rhs have each experienced remote and difficult hilly and uniformity of services across referred to local hospitals for advised accordingly, but we allow as doctor consults or essential the deaths of two residents, mountainous regions and AWCs. in emergencies, home investigations. from the end of the public health authorities to repairs); all items brought into but these were entirely unrelated could not be recovered. visits were conducted, and some May, Mous with local laboratory lead. in addition, strict self- the Rh are either quarantined to COvid-19, and hospital however, projects were selected patients were seen in providers were arranged to allow isolation and self-quarantine for three days or disinfected. admissions were handled with full re-started when “development the AWC with health cash-less investigations (1,040 protocols are followed for all After two full months, staff are infection prevention precautions. Projects” were allowed to professionals wearing full PPE. cases referred) and AWCs GWT staff. continue in close coordination initially, where possible, provided 700 phlebotomy As a result of COvid-19, the two OUR RESIDENTIAL HOMES with local authorities. pensioners were encouraged to services. 750 face to face Medical Camps planned between during lock down, some 37 buy medications locally, but as consultations were conducted at April – June 2020 were cancelled. When Nepal went into lockdown to protect our vulnerable projects were under construction the lockdown went on, AWC teams AWCs according to medical need. Mature plans are in place for residents in our Residential Homes in Dharan and Kaski, and another six were planned; delivered medication at home to Processing of secondary medical Camps in late 2020 and early 2021. our dedicated staff locked down with them, ensuring they all for completion before the continued to receive the best care. Monsoon in June. Of the year’s At the beginning of lockdown in March, both of our Residential 109 water projects, 62 had been homes bought four tablets for residents to use and enjoy. Not only completed before the lockdown, have the residents been watching cultural dance, religious shows, 43 were completed during the movies and listening to songs, they have also been able to video lockdown, and only four drilling call friends and family – keeping them connected while visits are projects were left suspended due to the COvid-19 risk in the not allowed. areas and the inability to get Bishnu Kumari Rai contractors and labourers onto the sites. despite the Our team at the Residential home, dharan have also started a series COvid-19 crisis, RWSP have on the residents of the home to document their life experiences delivered water and sanitation and journeys. The exercise has provided the team with plenty of to 44 local authority areas wisdom from the elderly men and women. in 25 districts across 6 of “it is easy to help others who are capable, but i enjoy the most when Nepal’s seven Provinces. i take care of animals and birds knowing that i have expectation of 6,783 tap stands and 13 school anything in return from them. That according to me, is the pure toilet blocks have been installed definition of selflessness – when you do something for others supporting 6,532 households without expecting anything in return.” and 37,686 beneficiaries. furthermore, 2,167 people Gurkha widow Bishnu Kumari Rai, 88 Years in 354 households have One of our nurses at the Residential home in dharan, benefited from the Simple drip Mamata dewan commented: irrigation scheme using excess drinking water to grow “The more i get to know Bishnu Pipi (grandmom), she inspires me to vegetables to improve be a better human being. Originally from Khandbari, Pipi has been nutrition and generate income. a Resident of Rh dharan for six Years and is survived by a daughter. She is like a walnut – hard on the outside but soft on the inside - short tempered yet the most loving, moody yet caring. When i see her, she reminds me a lot of myself and i feel that, when i grow old, i will become like Pipi – i hope that i am as caring and selfless as her.”

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Schools and to the nearest AWC. in April, refurbishments and 110 home 100 Homes Projects development work was permitted projects, applying strict infection BUILDING A BRIGHTER FUTURE FOR CHILDREN to continue, and the PSs were control protocols on their sites IN GURKHA COMMUNITIES The lockdown occurred in the redeployed to their construction and with labourers. Their peak of the construction season. sites. during the lockdown, they achievement means that GWT is The schools we build, repair and refurbish in the remote areas of Nepal, offer the next generation initially, all projects were have completed two Major confident that we can meet our the best possible start in life in a country where not everyone has that opportunity. suspended and the Project Schools, two Community hall Community Aid project targets Shree Bhagawati Secondary School is located in the Okhaldhunga of Nepal. The school currently Supervisors (PS) were recovered projects, 37 Minor Schools and for the new financial year. runs classes from Early Childhood Development (ECD) to class 12. They currently teach 668 students in total – 373 girls and 295 girls.

Earthquake Damage A Gurkha veteran’s approval The original government-constructed buildings Local Gurkha veteran Corporal Khabarsing Rai of the school were badly damaged in the 2015 was the project sponsor and let us know about earthquake. in November last year we began work the dire repairs needed. at the site. A major project, the build has included “i applied for the school because of the need the construction of a new 16 classroom double here. GWT built a school building in my village storey building, a new toilet block, adding new in 2016 which runs classes up to year 8. furniture, compound fencing and an incinerator. They had also provided furniture for the “in order to be able to create a safe environment school in the past. Since we have classes for the students, we asked for help from many up to year 8 only in the village, the students organisations. We approached GWT and they from my village come here to study. came to our school and listened to our needs. Those who can walk fast can make it to here We came to an agreement and are now in the in an hour, for others it takes about one process of construction.” and half hours. i always walk to and from The Principal, Mr Narayan Prasad Bastola is my village, it takes me one and half hours. pleased that work is underway. i am 79 years old.”

“i have been teaching in this school since the last Back where it all began 12 years. We are very happy that we are getting new buildings. Not just me, the teachers, the The project is being overseen by our Area management committee and the community are Welfare Officer in the region, retired inspector all happy. The government was not in a position of the Gurkha Contingent Singapore Police to provide such huge help to our school alone. force Shyamkumar Rai. Shyam has a special But, the state of the school was very poor. interest in the school, as he was a student GWT responded to our request in a very short here (albeit many years ago!). time. it is in the construction phase now and “This is one of the oldest schools in Okhaldhunga we are extremely happy. At this point, the district. it also has one of the highest number construction is progressing well ahead than of students. This area is also home to the we had thought of. We hope that, after the communities of retired Gurkhas from both construction is completed, we can work towards the British Army and Singapore Police force. providing a better learning environment.” i am originally from a village nearby and i studied in this school from classes 1 to 4. it is an hour’s walk from my village to here. i used to walk to school every day.” “Over my 10 years’ service in this organisation, i have completed many school projects. i have recently been transferred to the area where i’m originally from, and to be able to help the school that truly needed our help, i am very happy. On behalf of the local community, the school committee and the teachers, i would you like to thank you for helping the school.”

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SUPPORT TO helped to reduce the social SuMMARY iMPACT ON over 200 participants who Community fundraising initiatives impact within the most diligently climbed their stairs were severely affected by GOVERNMENT fuNdRAiSiNG vulnerable groups including girls, GWT has been on an operational or local inclines to achieve the lockdown which resulted in an women, and children with footing for nearly six months. height of Everest. The initiative income gap. in order to keep unsurprisingly, every element disabilities in Nepal. The Trust’s delivery model has raised over £50,000. community event participants RWSP COvid-19 of the Trust’s fundraising was constantly adapted to ensure enthused while cancellations and As at 7 Sep 20, RWSP’s response affected by COvid-19 and the in order to combat our inability iNTERvENTiON that our beneficiaries receive the postponements were announced, has delivered support to 183 sites subsequent lockdown and to interact directly with our best possible support that is safe new and innovative alternatives PROGRAMME and benefited over 30,000 people restrictions. having taken the supporters, new initiatives were for them and our staff. were developed including the across 33 districts. So far, the decision not to furlough or make developed in order to maintain this despite the many constraints, Trust’s first online auction. handwashing and basic sanitation programme has supported 56 any staff redundant, the vital communication. On facebook we have continued to deliver and hygiene have been recognised hospitals/health facilities, 65 local fundraising team were able to live streams were facilitated with The Trust now has a mature and individual and Community Aid as critical elements in the battle government institutions, and react quickly in adapting to the members of our Nepal based team, highly developed individual Giving in compliance with national and to combat the spread of COvid- 49 isolation & Quarantine centres significant change in environment discussing aspects of their work programme that forms the local government regulations, 19. Our team’s expertise in these and distributed 3,500 leaflets in and formulate contingency plans and welfare delivery. in addition, bedrock for our fundraising and we have expanded our fields was quickly mobilised by the rural communities. RWSP for new income streams while efforts to provide support to we held video conferences (using efforts. Our february Samachara the department for international continues to provide this support mitigating existing ones. Zoom) with invited supporters to newsletter, focussing on our development (dfid), who fund the the Government in its efforts to the Government of Nepal discuss specific elements of the earthquake homes has raised over majority of RWSP’s Community to combat the spread of the The Trust was one of the first and will include COvid-19 Trust’s work – including our £800,000 to date making it our Aid work. dfid allocated an virus. Nepal still has some way charities to reach the market with intervention projects in the earthquake resilient homes and most successful single appeal ever, additional £0.2M to RWSP to to go on its COvid-19 journey, a virtual challenge offering, new programme next year. the impact of COvid-19 on our surpassing even the Chairman’s support the Government of but our beneficiaries and replacing the many challenge operations with our in-country Appeal in November 2015 following Nepal’s efforts to contain the communities remain at the events cancelled during lockdown. heart of GWT’s operation. “Everest from home” attracted field director, Elton davis. the earthquakes in Nepal. COvid-19 outbreak through the MEdiCAL SuPPORT provision of contactless handwash stations, Personal Early in the lockdown, Protective Equipment and uK COvid-19 GWT doctors had some extra sanitation advocacy in designated capacity, which was offered to SuPPORT hospital/health facilities and Government COvid-19 response quarantine/isolation centres in centres. The Gandaki Province The staff in our two Gurkha six Provinces across the country. health Emergency Operation Welfare Advice Centres (GWAC) Working closely with national and Centre requested support to worked tirelessly to assist uK local authorities, RWSP staff based veterans with the advent operated at pace to deliver their public helpline, so for one full week, the doctors from of Covid-19 and the resultant immediate and practical support lockdown. This included: to protect the population and Kaski AWC responded to calls health workers at critical locations to the freephone number • Acting as an interface between on migrant routes, particularly in “hello doctor”. beneficiaries stranded in Nepal the hastily established quarantine due to the cancellation of Medical and the department of Welfare and isolation units set up in Camps, KAAA were requested to and Pensions (dWP) schools and colleges. in addition, allow re-direction of their unspent • facilitating contact and RWSP is coordinating with the funds. Some of these were spent cooperation between local Ministry of Water Supply and on supporting Gandaki Province’s councils and Gurkha WASh/health Clusters on public relations / reporting communities. response activities within local officer for two months, and and rural municipalities. during • Translation services for also a delivery by helicopter of ls and other entities COvid-19 response, GWT has also hospita emergency supplies to Myagdi dealing with non-English provided sanitation awareness district after it was cut off by speaking Gurkha veterans. training and advocacy, hygiene landslides. We also funded Kits and Sanitary Pads to maintain equipment for a new isolation • visa information enquiries personal hygiene and privacy. unit at Rumjatar district hospital. and liaison with uKvi. RWSP’s COvid-19 response plan Our continued medical provision • Assistance with accessing contributed to the programme has also relieved some of the benefits such as Pension for the prevention of general burden on Government Credit, universal Credit transmission of COvid-19 and health facilities. and housing benefits.

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WELfARE PENSiONS 2,056 WPs are now paid through able to apply for a grant from EVEREST AT HOME the bank on regular monthly basis; us to support them as they are We pay a pension to thousands all darjeeling pensioners receive unable to work. At the end of this financial year, with the country in lockdown their pension directly through and our public events and challenges cancelled, we launched our of impoverished Gurkha veterans in 2019/20 420 people received or widows in Nepal who aren’t their designated bank accounts. inaugural Everest at Home challenge. this grant (2018/19: 406). eligible to receive a British Army The total cost of these grants Everest stands at 8,848m high and overlooks the most beautiful country pension. The rate is calculated in 2019/20 was £129,000 of all – Nepal. home to our 500+ staff and the thousands of Gurkha each year using a ‘shopping WiNTER ALLOWANCE (2018/19: £89,000). veterans and widows we care for, last year the country struggled with basket’ of basic goods such as the influx of tourists attempting the summit – prompting queues at the rice, vegetables and firewood. Our Winter Allowance is an top of the mountain. This year the mountain got a well-earned rest. for many people, this is their only additional annual gift distributed WELfARE GRANTS We asked our supporters to scale Everest with us, by climbing their source of income. in addition to to all of our pensioners to ensure stairs or walking up local inclines, and achieving the equivalent elevation the food basket, the Trust now that they are equipped to endure We are needed the most of 8,848m. utilises the Government of the colder months of winter. during moments of tragedy. We had 210 people take part in the challenge, including Gurkha Soldiers Nepal’s statistical data used to The allowance was previously When disaster strikes in the serving in iraq. Led by Major General Gerald Strickland, the team of four define the minimum wage as paid in cash however, in line with form of fire, flood, landslide made the summit within 30 days, climbing 44 steps almost 350 times another relevant benchmark. the Trust’s policy of avoiding cash or earthquake, GWT is ready to provide immediate assistance, from their base in Baghdad. At the beginning of the reporting payments in favour of payment by offering financial and period there were 4,444 in-kind, this reporting period saw other support. CYCLING ACROSS NEPAL individuals in receipt of a Welfare all of our Welfare Pensioners Pension from the Trust. They issued with warm blankets. A total of 1,647 grants were former Gurkha officer Rob me a Mala (flower garland). • Better class interiors and were each paid a Welfare Pension made in 2019/20 for the Abernethy set off on 1 January i have never seen so many Mala. improved library facilities The direct cost of the Allowance immediate relief of destitution 2020, cycling 2,200km across To welcome me with a band, equating to 11,500 NPR per month. in 2019/20 was £91,000 (2018/19: • A performance area built £98,000). and in response to fire, flood Nepal raising over £100,000 to with speeches with dances… during the period 330 WPs were for student assemblies, and landslide damage at a total build Shree Prabha School in it could not have been a more recorded as ceased and a further performances and shelter in at a cost of £1,330,000 Gulmi district in the west of warm welcome. And it was great 75 ceased due to their move to the event of an earthquake (2018/19: £880,000). Nepal. Rob made us his chosen to see the building work going uK. 35 new welfare pensions were diSABiLiTY charity because of his on and all the money that Mr Nabaraj Acharya, the school authorised including six returning SuPPORT GRANT The additional cost also includes connection to the Gurkhas. supporters have raised actually principal, was delighted with from uK and 49 pensions were the second tranche of the taking shape on the ground.” the results. Trust’s earthquake-resilient “i was a Gurkha officer transferred to widows. four for disabled children of our core home project. commissioned in 1993 into the All the funds raised by Rob’s “i would like to thank GWT pensions were ceased due to the beneficiaries, we offer a regular newly formed first Battalion cycle assisted in the rebuild of from the bottom of my heart. beneficiaries moving into the monthly grant similar to the funeral grants were paid Royal Gurkha Rifles.” the school including: With the construction of the Residential homes. Welfare Pension. Without this in respect of 347 former new classrooms followed by financial support, and in the Welfare Pensioners. he described his journey as • The demolition of As at 30 June 2020 the number of the provision of library absence of a developed-world ‘beautiful’, ‘stunning’ and unsafe classrooms Welfare Pensioners had reduced materials and teacher training, health system, disabilities can ‘tough’. he arrived to a very to 4,119. • 12 new classrooms i am confident that our school pose an insurmountable obstacle warm welcome at the school. OuR EARThQuAKE- • A new latrine block with separate will become an example for for 2020/21 Trustees agreed an in Nepal. “it was amazing. it was actually toilets for girls and boys learning environment in the increase of 9.6% to the rate of RESiLiENT hOMES in 2019/20 232 people received very emotional. With the • An expanded clean water national level.” welfare pension from NPR 11,500 the grant (2018/19: 227) an entire school lined up to give supply on-site to NPR 12,600 per month it’s not if another earthquake hits increase of 12 from the assumed (NPR 151,200 pa). This increase Nepal, it’s when. We are taking budget of 220. The total cost of maintains the rate at 100% of pre-emptive action by building delivering these grants in 2019/20 month, and 222 recipients of the We committed to the provision the food basket used to earthquake-resilient homes for OuR fiNANCiAL Aid was £285,000 (2018/19: £232,000). disability Support Grant. At the of financial support for family determine a pensioner’s monthly Gurkha veterans and widows. We This year we committed to 30 June 2020, there were 4,119 members required to provide requirement for essential items. have committed to the provision continue the provision of financial Welfare Pensioners and 232 full time care to our Welfare in 2019/20 the cost of the of 100 homes in each of the three aid to Welfare Pensioners and recipients of the disability Pensioners through the home Care Welfare Pension programme hOME CARERS years commencing July 2018. recipients of the disability Support Grant. We committed to Allowance, and for the immediate was £5,859,000 (2018/19: ALLOWANCE This year, 110 new homes for Support Grant during 2019/20. a Winter Allowance in the form of support to Welfare Pensioners £5,614,000) which represents vulnerable pensioners were At 1 July 2019 there were 4,444 the provision of warm blankets to and their families in times of 29% of total charitable Sometimes, family members of completed. These homes offer Welfare Pensioners in receipt of all Pensioners to be distributed hardship through hardship expenditure (prior to movement our Pensioners care for them full- a safer alternative for some of a pension of NPR 11,500 per prior to end of November 2019. Grants and a funeral Grant. in the constructive obligation). time. When this happens, they are our most vulnerable Pensioners.

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OuR MEdiCAL Aid development is the collaboration • Six minor school extensions. and utilisation of local hospitals A ROOF OVER HER HEAD • 32 school refurbishments which can provide space, Aitamaya was put forward as a candidate for our Earthquake Homes Appeal last year, and thanks to The Trust provides an international (One project delayed to equipment and human resources the overwhelming response from our supporters in the UK we were able to build a new earthquake- standard of healthcare and 30 September 2020 due to as well as assisting with initial resilient house for her to call home. “It’s not even been a year since her house was built. Before, her medication to Gurkha veterans COvid-19 restrictions) house was built with bamboo and mud. It used to be very hard, water used to leak when strong winds and their families living in Nepal. screening and post camp follow • Two community centres. blew, it used to tear the roof sometimes.” We do this through our regional up. Local health professionals medical clinics, via home visits by are also involved so that they Restoring Aitamaya’s eyesight and although she wasn’t too keen on the operation specialist staff and by arranging may learn new skills and develop best practice. OuR CLEAN WATER Though the new home was a huge help, our staff itself, there is no doubt the results have changed subsidised treatment at carefully and dhanmaya were increasingly concerned about her life. The improvement was such that she no selected national hospitals. New specialities that have been ANd SANiTATiON Aitamaya’s eyesight. She had begun to have longer needed a full-time carer. her son and We committed to the provision successfully introduced include difficulty walking, relying more on touch and feel daughter have instead moved in to help her when of primary medical care enabling expanded dental care, including Our water projects bring clean to get around, and was struggling to find her she needs it. Even so, she still catches up with all pensioners’ access to an artificial dentures, audiometry and water and sanitation to remote toilet in the night. After a visit from our medical dhanmaya whenever she can, who is amazed at appointment at one of our hearing aid provision, adjustable communities in Nepal. We install team, our staff diagnosed her as having cataracts the impact our intervention has had on her life: medical centres and to be seen spectacle distribution, mobility individual tap stands and toilets by appropriately qualified and referred her to a hospital in Birtamod. “There has been such a huge difference in her life aids including the provision of to households and schools. medical staff. There, we paid for her to have cataract surgery, after GWT’s help. She got her sight back and artificial limbs, Ear, Nose and By ensuring a safe water source has a new home to live in. Now, she can see GWT medical services have Throat referrals and funding and providing a comprehensive better than before, which has become very easy provided 84,000 patient referrals to secondary care for education programme on the for her. She can go to the toilet on her own. consultations and 9,259 home selected beneficiaries. in addition, importance of sanitation we see Sometimes she even cleans and sweeps the floor visits during the year at a total a school health programme has sharp drops in water-borne and also comes to my house! Now she can walk cost of £6,443,000 (2018/19: been introduced focussing on diseases such as dysentery. here and there.” £5,218,000). dental and menstrual hygiene. We committed to a programme up to 110 projects in 2019/20. “At the time when she needed help the most, The second Option Year for the GWT helped her and looked after her. i am very international SOS consultancy OuR SChOOLS Over the year a total of 109 happy for her and would really like to thank commenced in January 2020 for (2018/19: 101) projects were GWT for everything they have done for her.” six months to 30 June 2020 at constructed; 106 new projects Our schools’ programme builds, which point the consultancy in (2018/19: 93) and 3 projects in Aitamaya’s own words: repairs and improves schools Nepal concluded. repairing existing schemes “i am really happy that you helped me see better. in remote regions of Nepal (2018/19: 8). This constitutes A separate two-year contractual But i won’t go to the eye hospital again! i don’t and in turn provides access to coverage of a total of 6,532 agreement commenced in January like hospitals! You are great people and thank education and a better future households (2018/19: 5,252) with 2020 with international SOS for you for all your help.” for Nepali children. a total number of 37,686 people medical services in darjeeling. Retaining the skills and expertise benefiting (2018/19: 30,342) in 25 The newly refurbished darjeeling in construction techniques districts and includes a total of as at 30 June 2020 with a total Rehabilitation (P&fR) services AWC and Medical Centre opened OuR RESidENTiAL amongst our staff is a key 6,783 tap stands and 13 school expenditure of £502,000 (2018/19: have been introduced and both in february 2020. requirement in ensuring that latrines. in addition to the main hOMES £420,000). The annual running Rhs have two rooms converted in 2019/20 the Trust supported we retain skills in-house to projects, 11 simple drip irrigation costs of both Rhs are met by and dedicated to P&fR. The Trust runs two Residential two medical camps at Mugu and ensure we can react immediately (Sdi) schemes were completed designated funds. homes (Rhs), one located at the four Cluster Rehabilitation Taplejung that treat the wider following natural disaster benefitting 354 households Area Welfare Centre (AWC) at during the year four new residents Therapists (CRTs) were recruited community at a direct cost of and forms part of our disaster (2018/19: 383) with a population Kaski, west Nepal and a second were admitted and sadly six in february 2020 and had initial £60,000 (2018/19: £89,000). Two resilience strategy. We committed of 2,167 (2018/19: 2,319). These located at the AWC at dharan, residents passed away (unrelated induction training with the further camps were cancelled due to the provision of three major schemes ensure that families to COvid-19. The cost was met in east Nepal. to COvid-19). Both Rhs have support of Green Pastures schools, two community halls have the means to grow vegetables full by Kadoorie Agricultural Aid been locked down due to hospital. Short term admissions and 28 minor school projects. both for themselves and to market. The homes provide round-the- Association (KAAA). The medical COvid-19 with no new residents for rehabilitation were stopped Total expenditure in 2019/20 was in partnership with dfid, the clock care to Gurkha veterans and camp model is being developed admitted since lockdown. £1,069,000 (2018/19: £1,109,000). Trust delivered the projects widows who would otherwise since the lockdown in response to and refined to concentrate on The following were provided at a cost of £3,644,000 (2018/19: struggle to live alone. With no following a report commissioned the COvid-19 pandemic. however, chronic health problems that comparable facility in Nepal, they during this reporting period: £3,361,000). by the Trust and conducted by prior to this the Rhs managed affect quality of life rather than set the standard of elderly care. humanities & inclusion, 17 rehabilitation admissions of life expectancy. As the camps • Three major school builds (Two Each project is supported by a The Rhs have a maximum capacity a Kathmandu based NGO, which two were subsequently have now become specialist completed by 30 September 2020 local Water user and Sanitation of 48 and there were 41 residents Physical & functional admitted as residents. interventions a significant due to COvid-19 restrictions) Committee on which there was a

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56% representation of females and 73% representation of BRINGING CLEAN Khoktak was selected because disaggregated groups. they previously had unsafe and WATER TO PEOPLE’S an unsystematic water supply following the announced merger system and therefore many between dfid and the fCO, the DOORSTEPS villagers were unable to get new foreign, Commonwealth and We have been implementing water, or if they did, were left development Office (fCdO) has water and sanitation projects with contaminated water. emerged. fCdO has approved in Nepal for over 40 years, but the new Resilience WASh and there is still so much work to Emergency Preparedness do. Our water systems are A tap for each home Programme (RWEPP Phase vi) built to a very high standard Each household in the village to commence from 1 April 2021 and our implementing partner, now has its own tap stand as with an approved costed the UK’s Department for well as a latrine and so does the extension to Phase v until 31 International Development local school. The water system March 2021 as a bridge to RWEPP. this year rated our water and has a substantial reservoir tank, sanitation projects as A+, so villagers will never be the highest grade possible. without water. OuR diSASTER in January, with the support We expect to see dramatic RESiLiENCE of the Jersey Overseas Aid reductions in waterborne Commission, we were able diseases such as dysentery The new RWEPP Phase vi in to bring clean water to 268 in the village as well as a big collaboration with fCdO will individuals (55 households) now contain an element of increase in female villagers’ and one school which has 55 funding in support of disaster wellbeing and quality of life students in Khoktak, preparedness and response and increased attendance at in the uK, the Trust has a Gurkha who remain in conditions of very Sankhuwasabha district in divERSiTY ANd focussing on the Trust’s AWC the school – partly because of Welfare Advice Centre (GWAC) real poverty and distress. footprint across the country. eastern Nepal. As well as clean, the new facilities and partly to assist pensioners and their however, in recognition of their iNCLuSiON fresh drinking water the because children no longer dependants with access to As part of the Trust’s reserves, work supporting the increasing The Trust is committed to projects also provided each need to take time out of their welfare and statutory a £6M disaster Response fund number and complexity of promoting and supporting household with a latrine thus entitlements that arise as a result has been set aside as designated day to fetch water. Crucially, welfare cases in the uK the Trust diversity through the creation preventing open defecation of linguistic and cultural hurdles. funds which will allow the Trust all of the villagers will also have makes an annual welfare grant to of an environment in which which was commonplace. This centre is co-located with to respond and act immediately clean water to irrigate their ABf – The Soldier’s Charity. individuals are treated on the sole when required. This fund has We also worked with the crops – enabling them to the Trust headquarters in during this reporting period, this basis of their relevant merits and been utilised during the period community to advocate produce more food both for Salisbury. in addition, the Trust welfare grant was £250,000. The abilities. All staff and trustees of this report this in immediate modern hygiene practices. themselves and for selling. runs another advice centre Trust remains extremely grateful share this commitment. The Trust response to rebuild one house jointly with hQ Brigade of for the assistance provided by will not tolerate any discrimination following the 2019 monsoon. The Gurkhas (hQBG) in Aldershot, ABf – The Soldier’s Charity and or behaviours towards an 2020 monsoon period has claimed vital tasks on behalf of the in to five clusters with up to four one of the main centres of those other organisations that individual in respect of age, Gurkha settlement in the uK. over 250 lives and a number of serving and retired members satellite AWCs centred around a are routinely involved with disability, race, religion, gender homes have been authorised for of the Brigade of Gurkhas, that Key AWC (Butwal, Kaski, The Trust and both GWACs work assisting those arriving from or sexual orientation, which are major rebuild during 2020/21. the MOd is unable to facilitate Kathmandu, dharan & damak). closely with local councils, Nepal to settle in the uK. offensive, discriminatory or itself, through its network of Within these clusters, multi- Government departments and hostile towards the individual. staff and AWCs throughout disciplinary Pensioner Support other Service charities to ensure Through the provision of OuR Nepal by the secondment of Teams (PST) facilitate a more effective support to those ex- iNTERNAL reasonable adjustments within iNfRASTRuCTuRE a field director and Project dynamic and mobile approach servicemen and their dependents the workplace, the Trust seeks Engineer and part of the time of to welfare delivery direct to our who may struggle as a result of COMMuNiCATiON to maximise the talent and ANd STAff the defence Advisor as director pensioner’s homes. how often linguistic and cultural hurdles in opportunities for both potential Effective communication with GWT(N). These tasks include a pensioner is visited will depend accessing appropriate support. and current employees. employees is of vital importance The staff and administration liaising with family members of on the vulnerability assessment Those service charities remain Arrangements will be made, costs of the Gurkha Welfare Trust that has been conducted for all responsible for meeting the cost and the Trust has established serving Gurkha servicemen in wherever possible, for retraining in Nepal continue to be met in Welfare Pensioners with those of any welfare support which procedures to provide information employees to enable them to compassionate cases. large part by the MOd through an deemed most vulnerable being enables the Trust to retain its to, and consult with, employees perform work identified as annual Grant in Aid (GiA) for the Our network of 21 Area Welfare visited with greater frequency focus on Nepal and those ex- on financial, employment and appropriate to their aptitude Trust’s contribution to fulfilling Centres (AWCs) has been divided according to need. servicemen and their dependants other matters that affect them. and ability.

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The Trust complies with all uK Statement of how directors from a Strategic perspective Statement summarising how Hardship Grants are made when guidelines around ‘legitimate legislation and applies this as best have complied with their duties the Trust’s relationship with directors have engaged with the applicant reports, or the interest’ when contacting practice in Nepal wherever to have regard to matters in the Government of Nepal suppliers, customers and others hardship case is discovered by a supporters. We provide clear practicable, in accordance with Section 172(1) of the Companies centres on the annual Brigade in a business relationship with Pensioner Support Team. At this information on how to opt Nepal statutory regulations. Act 2006 of Gurkhas Welfare the company. stage a form is completed out of receiving any Coordination Committee outlining the situation, the status communications from us via A director of a company must The Trust assesses the need of its (BGWCC) which endorses the of the applicant and any other every channel we use. act in a way he/she considers, beneficiaries through a Pensioner Trust’s work and provides our relevant details. in the case of a ENviRONMENTAL in good faith, would be the most Risk Assessment, from which a • We have paid the levy to join license to operate. house rebuild, details of land likely to promote the success welfare care plan is developed by The fundraising Regulator and MATTERS ownership are also captured. of the company for the benefit (d) The impact of the company’s our Welfare Officers. The plans promote our association and Group cases, such as large-scale The Trust is committed to of its members as a whole, operations on the community are regularly reviewed to ensure aim to comply with their rebuilding of houses following a minimising the impact that its and in doing so have regard to and environment: The Trust’s that the level of care is guidance on our website. natural disaster such as the 2015 processes have on the the following matters: work is intrinsically linked appropriate, and our internal earthquake are considered by • We are registered with the environment and to providing a with local communities, and Audit and Assurance programmes (a) The likely consequences of members of a board who will fundraising Preference safe working environment for our network of Welfare assess the level of compliance any decision in the long-term: decide relative merits of cases Service and ensure nobody our employees. Accordingly, a Officers work closely with and achievement. The Trust’s future work is and allocate appropriate resources is contacted who logs their new Environmental policy has local administrations. Our defined through a five-year The long-term grant arrangement within priorities and budget. requests with them. been produced by the Trust. long-term partnership with Strategy Review; the current with fCdO for the provision of fCdO (formerly dfid) has A Home Care Allowance is • We comply with the fundraising in accordance with the uK review period runs to 2020, potable water and sanitation is improved the lives of awarded to those who support Regulator’s fundraising Code of Government’s Streamlined Energy with the new period through to based on an agreed target and hundreds of communities our most vulnerable pensioners, Practice. & Carbon Reporting policy, the 2025 which was endorsed by annual assessment of through the provision of those who are unable to look Trust is a low energy consumer Trustees on 16 September 2020. potable water and sanitation. performance. This has led to the • We ensure that our staff and our after themselves or even to get in the uK and is therefore exempt programme achieving an A or A+ fulfilment agency are sighted (b) The interests of the (e) The desirability of the out of bed. The allowance is made from providing detailed energy rating with a low risk rating each on policies which safeguard our company’s employees: company maintaining a to a member of the family or an consumption disclosures. year since grading was introduced donors at every stage of their Our employees are our key reputation for high standards acquaintance who will then look in 2012. dir GWT(N) has the lead supporter journey. in Nepal, the Trust seeks to asset and Trustees are of business conduct: Trustees after the pensioner, manage their for the senior management of the • We do not share supporter reduce its environmental committed to promoting a seek to maintain the reputation medical condition and ensure relationship with fCdO staff details with any other footprint in a number of ways. highly motivated workforce and esteem in which the Trust that they eat properly. based at the British Embassy; organisation for marketing The use of solar panels in both through inclusion in the is held by both beneficiaries Allowances are only granted once day to day management of the or fundraising purposes. the hQ and across our AWC workplace, promoting and and supporters, through case specific training has been programme is invested in the network helps mitigate energy supporting training and openness and clarity in our received and regular visits are • We update donor details on RWSP Programme director. consumption. Travel by vehicle development opportunities objectives and deliverables made to ensure the ‘home carer’ our database according to their and domestic airlines has been and supporting their physical and ensuring that maximum is discharging their duties wishes and ensure our database reduced through the greater and mental wellbeing. in benefit reaches our core appropriately. Such allowances is fully GdPR compliant. use of online conference and Nepal, regular staff surveys beneficiaries enabling them to OUR POLICIES are reviewed when the pensioner communication facilities as “Live with dignity”. There is a • We have a procedure for are undertaken, and a Staff risk assessment is reviewed. a direct result of the digitisation robust governance structure logging complaints: Council has been introduced of our welfare network. with committees and Trustees GRANTS POLiCY www.gwt.org.uk/complaints. to enhance communication. meeting on a regular basis. in total nine complaints (c) The need to foster the are awarded in fuNdRAiSiNG POLiCY were received over the year; (f) The need to act fairly as Welfare Pensions company’s business cases of destitution to ex Gurkha four were related to individual TRAiNiNG between members of the in order to comply with best giving correspondence relationships with suppliers, company: Trustees expect all Soldiers who have served in the fundraising practice and General (or lack of), three were in The Trust is committed to customers and others: within the Trust to uphold the British Army and their widows data Protection Regulation regard to cold acquisition ensuring that staff are properly The Trust seeks to manage its highest standards and be seen who have not qualified by length (GdPR) we have taken the items and two were related trained for their roles as well as relationships with suppliers in as an exemplar to other similar of service for a pension paid by following steps: to fundraising volunteers. helping maintain motivation and an open and transparent way, organisations. To support the British Government. All cases supporting continued ensuring there is fairness in consistent standards the Trust are investigated by an Area • We communicate with • All staff have regular training professional development. We all aspects of the tender has a values & Standards Welfare Officer and only in cases supporters based on their on data Protection. have increased the number of process. At a local level in document, a Competency where obvious destitution exists, preferences and only telephone • We update our Privacy Policy staff available to deliver in-house Nepal the Trust liaises with framework, Appraisal are they granted. All cases are or email people who have given on a regular basis to comply training as well as utilised a wide local authorities and federal Reporting policy and re-examined at a time determined us explicit consent to do so. with iCO guidance. range of individuals and teams Governmental structures procedures and a discipline at the time of award, but no for our direct Mail programme, from uK, where the necessary through our Welfare Officers policy and procedures within longer than five years, to ensure we use the information • We do not wealth screen in skills do not exist in Nepal. located around the country. the Staff handbook and TACOS. that the pension is still required. Commissioner’s Office (iCO) compliance with the GdPR.

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• We only share donor data with investments and smaller can be made in Nepal and the NPR • The Trust’s assets. • Natural disasters. Nepal suffers financial reserves. The Trust third parties assisting us with companies. The purpose of the had been in decline against from a high level of seismic maintains sufficient reserves to The Trustees review all risks our fundraising and we take two main portfolios is to delineate sterling for some time until it activity as evidenced by the on an ongoing basis and satisfy meet all of its obligations and every measure to ensure data the Trust’s requirements between recently reversed. The solution earthquakes in 2015. The Trust themselves that adequate these are regularly reviewed by monies that are held as an has been to keep some monies in has a decentralised structure is transferred securely via procedures are in place to minimise the investment Committee and immediate reserve to cover cash Nepal (in NPR) and to move a with Area Welfare Centres encryption and passwords and manage the risks identified. our fund Managers in order to flow requirements (c. 18 months) proportion of both the long and spread across the country and to secure servers. Where possible and appropriate, ensure that the balance of the and truly long-term monies which medium-term portfolios into uS$, which provide a local base for • Our supporters are at the heart risks are covered by insurance. portfolio is appropriate. This is can weather capital volatility and the indian Rupee (the Nepal Rupee emergency response. if one area of everything we do and you can supported by developing and have a five - seven year time is pegged to the indian Rupee at a The Trust’s financial Reserves is affected severely then find our Supporter Promise here: maintaining contingency horizon. The long-term portfolio rate of NPR 1.60/1 iNR) and to policy is assessed and set at a neighbouring centres can https://www.gwt.org.uk/wp- fundraising plans. is seeking a return that is better have a large weighting of overseas level which enables the Trust to immediately move in to provide content/uploads/2017/08/ than both a composite benchmark equities and bonds within the help manage its risks. support. This national footprint • Exchange Rate Risk. The Trust Our_vow_to_you.pdf. (a composition of indices) and an long-term portfolio. forms the cornerstone of our monitors the rate of exchange The Charity Commission issued inflation plus target (CPi + 4%). future disaster management on a daily basis. Over the long The move to increased investment guidance “Charity fundraising – Over the past 12 months the plan as part of the RWEPP Phase term the rate of exchange in global equities has provided OuR PRiNCiPAL RiSKS a guide to Trustee duties” and long-term portfolio returned vi in collaboration with fCdO. moves to counteract the access to a wider and more the fundraising checklist (CC20) 7.2% (after fees), compared to the ANd uNCERTAiNTiES differential in inflation between diversified investment universe • Activities that jeopardise the in 2016. The 2020 assessment was benchmark of 5.4%. Over the past two countries but over periods that historically has enhanced Trust’s reputation. The Trust reviewed by the Audit Committee 12 months the alternatives and of up to 10 years politics and returns and reduced the operates in a country that has and endorsed by the Board on smaller companies returned 3.0% A. Operational Risks financial confidence can cause concentration risk more prevalent a relatively high risk of fraud and 16 September 2020. (after fees) compared to the All key risks appear in the Trust’s significant movements up or in domestic indices. it has provided corruption. To minimise this risk benchmark of 2.9%. Risk Register and include down away from this trend. The Trust has been supported in access to a number of the world’s Audit and Governance operational risks. The key risks As inflation has traditionally its fundraising through a Regional fastest growing industries which committees monitor are identified as: been higher in Nepal than uK Branch structure which has raised Investment Risk – are largely inaccessible via the uK recruitment and adherence to the movement has benefited over £2.5M over the last few years. the risks & how do we stock market including the • Withdrawal of Government of procedures. An internal audit Nepal support for GWT function carries out risk related the Pound and assisted our work This network of dedicated mitigate these through manufacture of technology and fundraisers continues to be web-based search and selling, and activities. Potentially as a result checks. in addition, GWT(N) in Nepal. however, in 2007 the valuable for the Trust, though not our investment strategy? moves away from industries such of an adverse change in inter- senior management are financial collapse severely Governmental relationship operating as the formal branch investment risk covers a number as the production and refining of recruited from former Gurkha affected the value of the Pound between uK and Nepal that structure it had been previously. of different areas and the oil and gas which account for officers who have a proven track and again in June 2016, following affects or inhibits activities in instead, managed centrally, the investment committee, on behalf nearly 13% of the domestic market record of financial probity in the the Eu referendum. following Nepal or a breakdown in individuals work with our of the Trustees, have reviewed in contrast to just over 6% of the British Army. The Trust is a period in which there were relationship at Ministerial level Community fundraising Officer to the internal procedures as well as global index. The increase in global committed to ensuring the signs of recovery, the political with failure to gain approval for promote our work and raise vital the investment process of their equities has enabled greater safeguarding of our beneficiaries turbulence in the uK in 2019 has GWT projects or activities. This funds via initiatives across the uK. fund manager in order to ensure diversification, both at sector level and our employees. Clear policies resulted in further significant is mitigated at a strategic level This change was the result of an that all of the industry safeguards and geographically. are in place that are both movements. Over the past 25 increase in governance are in place. The investment with continuous review by the accessible and understood years the Pound has gained by defence Attaché (also director requirements and the difficulty committee have guarded against by all staff as well as guidance an average of 3% per annum Risk Management GWTN) with the Government of recruiting formal branch members. two main areas of risk. on whistleblowing. These are but this includes swings of plus All activities are subject to regular Nepal (GoN). At an operational enhanced by regular training The first is to ensure that the 16% or minus 14%. At present, risk review by the Board of level close liaison is maintained and increased awareness cash flow from the uK to Nepal a 1% change to the average rate Trustees. Major risks are, for this through our Welfare Officers among staff particularly does not force the realisation of creates an increase or reduction iNvESTMENT POLiCY purpose, those that could have a with Chief district Officers during the induction process investments held within the in costs of £180,000 but it also ANd PERfORMANCE significant effect on: (CdO) to ensure compliance for new employees. portfolio when not appropriate with GoN requirements via the changes the value of our and this has led to the setting up • The Trust’s operational liabilities on the balance sheet The Trust meets the key BGWCC. in September 2020 B. Financial Risks challenges of short-term liquidity, of the medium-term portfolio. performance, including risks the uK Government bilaterally by £400,000 so our net assets cash flow flexibility and long-term The second investment risk is the to personnel and volunteers. submitted its proposal for a The Trust faces a number of key can change significantly one financial risks. The Trustees sustainability by cash holdings and recognition that the MOd’s grant • The Trust’s ability to achieve renegotiation of the dharan year to the next. To mitigate consider that the following splitting investments between a in aid and the Trust’s fundraising its objects. understanding (du) to GoN. against adverse movements summarises those financial risks medium-term investment activities are in a different The du forms the authority for funds to cover three months • Meeting the expectations of and their responses to them: portfolio and a long-term currency (Sterling) to the recipient the in-country presence of the cash flow are held in Nepali beneficiaries and supporters. investment portfolio. in addition, beneficiaries (Nepali Rupee – NPR). MOd as well as GWT’s ability • Investment performance Rupees and the investment there are two more, smaller funds it is difficult to mitigate this risk • The Trust’s reputation to operate. GoN’s response is insufficient to maintain portfolio is spread across a invested in alternative as there are few investments that and integrity. now awaited. an appropriate level of wide range of currencies.

24 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 25 TRuSTEE’S REPORT TRuSTEE’S REPORT

C. Going concern AddiTiONAL POLiCiES contributed by all ranks of the risk of future earthquakes, in June extended mortality rates, levels of income will be Brigade of Gurkhas under the 2018, the Trustees agreed a long-term inflation at 7% and matched in the future or that The Trust has undertaken a robust Service day’s Pay Giving scheme. designated fund (£6,000,000) to a discount rate at 6.5%. The investments/assets will assessment of the global economic The Trust is committed to Legacy income totalled allow an immediate response to actuarial calculation at 30 June maintain their value. effects of COvid-19 and its sustainable development, meeting £6,405,000 (2018/19: £6,115,000). natural disaster. funds were 2020 ROE is £39.6M; a reduction impact on the ability of the Trust the needs of our beneficiaries Trustees consider that the Trust The use of Gift Aid generated agreed for the replacement of a of £4.088M from June 2019. to operate as a Going Concern. without compromising the ability ideally requires free reserves of future generations to meet additional income of £879,000 beneficiaries’ home destroyed in equivalent to 12 months of The two main areas of financial their own requirements and this (2018/19: £854,000). a landslip during the 2019 Reserves Policy standard expenditure not covered risk have been identified as: monsoon season and four further is a guiding principle within our Based on a risk assessment and by other provisions, currently homes have been authorised • Reduction in fundraising work in Nepal. Concern for the after allowing for funds to meet around £17,481,000. This level of following destruction during the income; and environment is an integral and EXPENdiTuRE the constructive obligations, reserve will enable the Trust to 2020 monsoons. designated fundamental part of this Residential homes running adjust its infrastructure and • Reduction in valuation of funds total £14,768,000 (2018/19: commitment and our aim is to Charitable expenditure totalled costs and disaster Response, respond quickly to any of these the investment portfolio £14,909,000) as at 30th June 2020. reduce the impact of our £20,025,000 (2018/19: £18,826,000). as mentioned above, the risks. The Reserve Policy is Whilst the immediate effect of operations on the environment. This represents 89% of a total Trust’s Reserves Policy takes reviewed annually during the expenditure (prior to movement budget setting process taking lockdown was the cancellation An updated Environmental policy Restricted Funds into consideration: in the constructive obligation) of account of current and future or postponement of almost all has been promulgated in support As a result of timing of funds £22,504,000 (2018/19: £21,535,000). • The Trust’s clear and long-term risks and the economic climate, Community activity and Events of the Trust’s approach. payments, the Trust started the objective of supporting the and Challenges, the innovative Our cost of raising funds including year with a £50,000 deficit in funds both in the uK and Nepal, and investment management is Welfare Pensioners in their consequential impact on the creativity of the fundraising team restricted to assist water projects declining years including the has enabled alternative virtual £2,479,000 (2018/19: £2,709,000) and schools in Nepal. As a result of Trust’s investment portfolio. OUR FINANCIAL of which 89% is covered by our provision of welfare and events such as Everest at home the COvid-19 lockdown, projects medical support. After taking the Constructive and the GWT Auction. REVIEW investment income of £2,201,000. were initially paused, resulting in Obligation into account the Trust fundraising expenditure of slippage in the completion of a • Essential provision for a period When agreeing the budget for has total funds of £44,176,000 £2,162,000 (2018/19: £2,406,000) number of school and water of readjustment for those in 2020/21, Trustees agreed a (2018/19: £34,951,000), however, iNCOME continues to be effective raising projects to early 2020/21. At the receipt of welfare support if cautious projection for the free reserves which are income of £13,457,000 (2018/19: 30th June 2020, there was a balance the Trust should ever be available to meet contingencies fundraising income whilst Trust income from all sources £13,225,000). This represents a of £1,353,000; of which £495,000 required to reduce or cease its and exclude tangible fixed assets, maintaining levels of charitable during the financial year Return on investment of £6.22 is restricted for 100 homes activities, for whatever reason. designated and restricted funds activity – drawing on free 2019/20 was £25,259,000 for every £1 spent (2018/19: Tranche three, £161,000 is for the • The Trust’s requirement to amount to £27,088,000 (2018/19: reserves to balance. fundraising (2018/19: £21,154,000). £5.50). 2019/20 is the second year provision of medical services, respond promptly and £19,303,000). This represents 155% performance against budget is of the 5-Year fundraising Strategy donations from individuals, £97,000 for completion of school appropriately to new and of the minimum level of reserves measured on a monthly basis and which is based on increased companies, trusts and other projects and £600,000 for the unforeseen needs or challenges deemed appropriate by the income to date for 2020/21 has investment for donor acquisition organisations totalled £6,534,000 completion of the water and that might affect the way in Trustees. With financial uncertainty exceeded initial projections. in order to sustain and increase (2018/19: £6,755,000). We continue sanitation programme. which welfare support is anticipated for at least 12 – 24 total income over the longer The Trust has applied a sensitivity to be supported by the MOd who delivered. Trustees specifically months, this level of free reserves term. The rate of return remains assessment to future income provided a grant of £2,966,000 Constructive Obligation note the Trust carries out its has enabled Trustees to agree a above industry standards. budget for 2020/21 and early projections and the investment (2018/19: £2,937,000) towards the When a charity has created a valid welfare activities in a country planning for 2021/22, in which the portfolio, to understand the cost of the means of delivery of expectation through past where there are not only Trust draws on its reserves in extent to which reductions can our aid and a new grant towards practice that it will meet a liability geophysical dangers such as order to maintain current levels be managed without impacting the provisions of medical services RESERvES the Charity Commission requires earthquakes but also political, of charitable activity. Given the on long term commitments and £2,500,000 (2018/19: £0). Our it to recognise the liability on the social and economic COvid-19 pandemic, the volatility the ability to deliver charitable current contract with dfid is due balance sheet as a constructive uncertainties. in addition, to Designated Fund of investment markets, the activities to our beneficiaries. to run until 2020 and during the obligation. The Trust considers deliver welfare support, the The Trustees are concerned that continued uncertainty over future financial performance is year we received £4,040,000 that a constructive obligation has Trust depends on a number of the level of running costs of the rates of exchange, the uncertain scrutinised on a regular basis by (2018/19: £2,650,000). been created for the payment of partners whose support in the Residential homes should not fundraising climate and the the finance Committee and the the Welfare Pensions and the future is not guaranteed. TRAiLWALKER, an annual have a detrimental effect on our substantial risk of future natural Main Board so that any shortfall disability support grants. • The impact of adverse changes fundraising event on behalf of ability to provide support to the disasters in Nepal, Trustees will in income will be identified to to the rate of exchange the Trust, coordinated by the much wider community of Based on WP and dSG beneficiary continue to keep Trust finances Trustees in a timely manner. between Sterling and the Queen’s Gurkha Signals Regiment Welfare Pensioners. Therefore, a numbers at 30 June 2020 and key under close review balancing Nepali Rupee (NPR). Trustees have concluded that in conjunction with Oxfam GB, designated fund has been created assumptions including: 50 new current needs and the need to the Trust remains in a strong resulted in income of £265,000. that is sufficient to meet the joiners for each of the next five • Economic adversity, as despite reach the ideal level of reserves financial position and operates Other notable donations include annual running costs for 20 years. years (average age 73), agreed a strong supporter base, there to protect the interests of as a Going Concern. £131,000 (2018/19: £185,600) following specialist advice on the increases in rates payable, is no guarantee that recent beneficiaries in the future.

26 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 27 STATEMENT Of TRuSTEES’ RESPONSiBiLiTiES

The Trustees, who are also directors of The Gurkha Welfare Trust for the purposes of company law, are responsible for preparing the Trustees’ Annual Report (including the Group Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

Company law requires the Trustees to prepare The Trustees are responsible for the maintenance financial statements for each financial year. under and integrity of the corporate and financial company law the Trustees must not approve the information included on the charitable group’s financial statements unless they are satisfied that website. Legislation in the united Kingdom they give a true and fair view of the state of affairs governing the preparation and dissemination of of the charitable company and the group and of the financial statements may differ from legislation incoming resources and application of resources, in other jurisdictions. including the income and expenditure, of the So far as each of the Trustees is aware at the time charitable group for that period. in preparing these the report is approved: financial statements, the Trustees are required to: • there is no relevant audit information of which • select suitable accounting policies and then the company and the group’s auditors are apply them consistently; unaware, and • observe the methods and principles in the • the Trustees have taken all steps that they ought Charities SORP; to have taken to make themselves aware of any • make judgments and accounting estimates relevant audit information and to establish that that are reasonable and prudent; the auditors are aware of that information. • state whether applicable uK Accounting This Trustees’ Report incorporating the Strategic Standards have been followed, subject to any Report was approved and authorised for issue by material departures disclosed and explained the Board of Trustees on 09 december 2020 and in the financial statements; signed on its behalf by: • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable group will continue in operation. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company and the group’s transactions, disclose with reasonable accuracy at any time the financial position of the charitable group and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the charitable company’s constitution. They are also responsible for safeguarding the assets of the charitable company Lieutenant General R Wardlaw OBE and the group and hence for taking reasonable steps for the prevention and detection of fraud Chairman and other irregularities. 09 december 2020

The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 29 TRuSTEES

Under the patronage of HRH The Prince of Wales KG KT GCB OM AK QSO PC ADC viCE PATRONS Investment Committee Field Director The Gurkha d J hitchcock Esq OBE (Chairman) Welfare Trust (Nepal) Lieutenant Colonel E davis QG field Marshal The Lord Bramall J J Brade Esq MBE (to 16 September 2020) SiGNALS (from 4 October 2019) of Bushfield KG GCB OBE MC JP Major General J J Cole OBE*** (to 12 November 2019) Lieutenant Colonel S J Whitlock QGE P M Rigg Esq (to 4 October 2019) field Marshal Sir John Chapple C Gate Esq GCB CBE dL Deputy Director Plans and Resilience Miss Joanna Lumley OBE Audit and Finance Committees J R White Esq (until 17 March 2020) d P Clifford Esq MvO (Chairman) Head of Fundraising (to 11 September 2019) TRuSTEES, OffiCiALS and Communications S J Cooper Esq (Chairman) A Bentham Esq (from 23 March 2020) ANd AdviSORS (from 11 September 2019) ** Head of Fundraising Colonel J P davies MBE Ms S J Cherrington Trustees (from 20 September 2019, (until 31 december 2019) to 4 October 2020) Lieutenant General (Retd) Investment Managers dr J d Keeling MBA, MB BS, Sir Nick Pope KCB CBE Sarasin & Partners LLP * fRCGP, dRCOG (Chairman) (to 2 November 2020) Juxon house, ** Lieutenant General R Wardlaw OBE Colonel J G Robinson CBE 100 St Paul’s Churchyard (Chairman from 2 November 2020)*** (to 20 September 2019) London EC4M 8BO Ms C L Turner J J Brade Esq MBE (to 16 September 2020) Auditors d P Clifford Esq MvO Governance Committee Crowe u.K. LLP (to 11 September 2019) Carrick house Lypiatt Road *** f S dufficy Esq (Chairman) Cheltenham, GL50 2QJ Major General J J Cole OBE (to 11 december 2019) Bankers S J Cooper Esq (from 11 September 2019) Mrs A Levin (Chair) ** The Royal Bank of Scotland Colonel J P davies MBE (from 12 december 2019) (from 20 September 2019) Lawrie house, victoria Road, J J Brade Esq MBE (to 16 September 2020) farnborough Gu14 7NR f S dufficy Esq (to 11 december 2019) ** Colonel J P davies MBE HSBC Bank plc Major General A J S fay CB (from 4 October 2020) 90 Baker Street, London W1M 2AX (to 1 August 2020)*** Major General A J S fay CB Solicitor Major (Retd) Krishnabahadur *** (to 1 August 2020) A J Lutley Esq Gurung MvO MBE d G hayes Esq CBE*** *** Springfield, Rookery hill, d G hayes Esq CBE Ashtead Park, Ashtead, d J hitchcock Esq OBE ThE GuRKhA Surrey KT21 1hY dr J d Keeling MBA, MB BS, Registered Address fRCGP, dRCOG WELfARE TRuST P.O Box 2170, 22 Queen Street Mrs A Levin (from 12 december 2019) Salisbury SP2 2EX Colonel J G Robinson CBE** Director The Gurkha Welfare Trust Company Limited by (to 20 September 2019) A P W howard Esq Guarantee Number Major General G M Strickland Director The Gurkha Welfare 05098581 *** dSO MBE Trust (Nepal) Registered Charity Number Ms C L Turner Colonel R Goodman 1103669

* Ex officio Trustee – Colonel Commandant Brigade of Gurkhas ** Ex officio Trustee – Colonel Brigade of Gurkhas *** Nominated Trustees – Gurkha Brigade Association, The Royal Gurkha Rifles, The Queen’s Gurkha Engineers, The Queen’s Gurkha Signals and The Queen’s Own Gurkha Logistic Regiment

30 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 AudiTOR’S REPORT

Opinions on other matters prescribed concern, disclosing, as applicable, matters related by the Companies Act 2006 to going concern and using the going concern basis iNdEPENdENT AudiTOR’S REPORT of accounting unless the trustees either intend to in our opinion based on the work undertaken in the liquidate the charitable company or to cease course of our audit TO ThE MEMBERS Of ThE GuRKhA WELfARE TRuST operations, or have no realistic alternative but • the information given in the trustees’ report, to do so. which includes the directors’ report and the Opinion Conclusions relating to going concern strategic report prepared for the purposes of Auditor’s responsibilities for the audit company law, for the financial year for which We have audited the financial statements of The We have nothing to report in respect of the of the financial statements Gurkha Welfare Trust for the year ended 30 June 2020 following matters in relation to which the iSAs (uK) the financial statements are prepared is which comprise Consolidated Statement of financial require us to report to you where: consistent with the financial statements; and Our objectives are to obtain reasonable assurance Activities, Consolidated and Charity Balance Sheets, about whether the financial statements as a whole • the trustees’ use of the going concern basis of • the strategic report and the directors’ report Consolidated Statement of Cash flows and notes to are free from material misstatement, whether due accounting in the preparation of the financial included within the trustees’ report have the financial statements, including a summary of statements is not appropriate; or been prepared in accordance with applicable to fraud or error, and to issue an auditor’s report significant accounting policies. The financial legal requirements. that includes our opinion. Reasonable assurance is reporting framework that has been applied in their • the trustees have not disclosed in the financial a high level of assurance, but is not a guarantee that statements any identified material uncertainties preparation is applicable law and united Kingdom an audit conducted in accordance with iSAs (uK) that may cast significant doubt about the group’s Matters on which we are required Accounting Standards, including financial Reporting will always detect a material misstatement when it Standard 102 The financia or the charitable company’s ability to continue to report by exception l Reporting Standard exists. Misstatements can arise from fraud or error applicable in the uK and Republic of ireland (united to adopt the going concern basis of accounting in light of the knowledge and understanding of the and are considered material if, individually or in the Kingdom Generally Accepted Accounting Practice). for a period of at least twelve months from the group and the charitable company and their aggregate, they could reasonably be expected to date when the financial statements are environment obtained in the course of the audit, in our opinion the financial statements: influence the economic decisions of users taken on authorised for issue. we have not identified material misstatements in the the basis of these financial statements. • give a true and fair view of the state of the group’s strategic report included within the trustees’ report. and the charitable company’s affairs as at 30 June Other information A further description of our responsibilities for 2020 and of the group’s incoming resources and We have nothing to report in respect of the following The trustees are responsible for the other the audit of the financial statements is located application of resources, including its income and matters in relation to which the Companies Act 2006 information. The other information comprises the on the financial Reporting Council’s website at: expenditure for the year then ended; requires us to report to you if, in our opinion: information included in the annual report, other www.frc.org.uk/auditorsresponsibilities. • the parent company has not kept adequate • have been properly prepared in accordance with than the financial statements and our auditor’s This description forms part of our auditor’s report. united Kingdom Generally Accepted Accounting report thereon. Our opinion on the financial accounting records; or Practice; and statements does not cover the other information • the parent company financial statements are Use of our report • have been prepared in accordance with the and, except to the extent otherwise explicitly not in agreement with the accounting records This report is made solely to the charitable company’s requirements of the Companies Act 2006. stated in our report, we do not express any form and returns; or of assurance conclusion thereon. members, as a body, in accordance with Chapter 3 of • certain disclosures of trustees’ remuneration Part 16 of the Companies Act 2006. Our audit work in connection with our audit of the financial Basis for opinion specified by law are not made; or has been undertaken so that we might state to the statements, our responsibility is to read the other We conducted our audit in accordance with • we have not received all the information information and, in doing so, consider whether the charitable company’s members those matters we are international Standards on Auditing (uK) (iSAs (uK)) and explanations we require for our audit. other information is materially inconsistent with the required to state to them in an auditor’s report and and applicable law. Our responsibilities under those financial statements or our knowledge obtained in for no other purpose. To the fullest extent permitted standards are further described in the Auditor’s the audit or otherwise appears to be materially Responsibilities of trustees by law, we do not accept or assume responsibility to responsibilities for the audit of the financial misstated. if we identify such material anyone other than the charitable company and the statements section of our report. We are As explained more fully in the trustees’ responsibilities inconsistencies or apparent material misstatements, charitable company’s members as a body, for our independent of the group in accordance with the statement set out on page 29, the trustees (who are we are required to determine whether there is a ethical requirements that are relevant to our audit also the directors of the charitable company for the audit work, for this report, or for the opinions we material misstatement in the financial statements or of the financial statements in the uK, including the purposes of company law) are responsible for the have formed. a material misstatement of the other information. if, fRC’s Ethical Standard, and we have fulfilled our preparation of the financial statements and for based on the work we have performed, we conclude other ethical responsibilities in accordance with being satisfied that they give a true and fair view, that there is a material misstatement of this other these requirements. We believe that the audit and for such internal control as the trustees information, we are required to report that fact. evidence we have obtained is sufficient and determine is necessary to enable the preparation of Tara Westcott appropriate to provide a basis for our opinion. We have nothing to report in this regard. financial statements that are free from material Senior Statutory Auditor misstatement, whether due to fraud or error. for and on behalf of Crowe u.K. LLP in preparing the financial statements, the trustees Statutory Auditor, Cheltenham are responsible for assessing the group’s or the charitable company’s ability to continue as a going 17 december 2020

32 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 33 fiNANCiAL ACTiviTiES

CONSOLidATEd STATEMENT Of fiNANCiAL ACTiviTiES fOR ThE YEAR ENdEd 30 JuNE 2020

(incorporates the consolidated income and expenditure account) Notes Unrestricted Restricted 2019-20 2018-19 General designated Total Total NOTES £000 £000 £000 £000 £000 Income from: 3 donations and legacies The consolidated statement of donations 3a 4,432 0 2,102 6,534 6,755 financial activities includes the Legacies 3b 6,405 006,405 6,115 income and expenditure account. Grants Ministry of defence 3c 002,966 2,966 2,937 There are no other gains Charitable activities 3d and losses other than those Ministry of defence 002,500 2,500 0 shown above. department for international development 004,040 4,040 2,650 KAAA 0095 95 89 All the Trust’s activities are Other trading activities derived from continuing activities. fundraising Events 3e 385 0 133 518 355 Profit for Companies Act investments 3f 2,191 0 10 2,201 2,253 purposes (before unrealised Total 13,413 0 11,846 25,259 21,154 gains and losses) is: £5,622,000 including movement in Expenditure on: 4 Raising funds constructive obligation fundraising 4f 2,162 002,162 2,406 (2018/19: deficit £1,149,000 investment management costs 4f 317 00317 303 excludes movement in Charitable activities constructive obligation). individual aid 4a 4,535 10 3,822 8,367 7,532 Medical Aid 4b 3,965 0 2,478 6,443 5,218 Net income/(expenditure) disaster response 4d 0 0 001,186 before movement in constructive Residential homes 4c 0 487 15 502 420 obligation: £2,755,000 (2018/19: Community aid 4e 585 0 4,128 4,713 4,470 (£381,000)) Sub Total Expenditure 11,564 497 10,443 22,504 21,535 See Note 19 for a comparative Movement in constructive obligation 4g/14 (4,088) 00(4,088) statement of financial activities for year ended 30th June 2019. Total 7,476 497 10,443 18,416 21,535 The notes on pages 41 to 63 Net income/(expenditure) 5,937 (497) 1,403 6,843 (381) form part of these accounts. before other gains and losses Other gains and losses Net gains on investments 9 2,483 002,483 2,679 Net income/(expenditure) 8,420 (497) 1,403 9,326 2,298 Transfers between funds 16 & 17 (356) 356 000 8,064 (141) 1,403 9,326 2,298 Other recognised gains/(losses) Movement in constructive obligation 14 1,676 Profit & loss revaluation (loss)/gain (101) 00(101) (23) Net Movement in funds 7,963 (141) 1,403 9,225 3,951 Reconciliation of funds funds brought forward 20,092 14,909 (50) 34,951 31,000 Total Funds Carried Forward 28,055 14,768 1,353 44,176 34,951

34 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 35 BALANCE ShEET

CONSOLidATEd ANd ChARiTY BALANCE ShEET AT 30 JuNE 2020

The Gurkha Welfare Trust Company registration number 05098581

Notes Group Charity NOTES 2020 2019 2020 2019 £000 £000 £000 £000 Group includes GWT Trading fixed assets: Limited, the wholly owned intangible assets 7 10 0 10 0 trading subsidiary. Tangible assets 8 2,026 1,879 2,026 1,879 The net income in funds for the investments 9 69,762 69,762 69,183 69,183 Trust for the year ended 30 June Total fixed assets 71,219 71,641 71,219 71,641 2020 was £9,326,000 (2018: £2,298,000 before the movement Current assets in the constructive obligation). Medication, project and trading stock 332 208 332 208 As permitted by Section 408 of the debtors 10 1,224 1,587 1,224 1,611 Companies Act 2006, no separate Statement of funds or income and Cash at bank and in hand 11,871 6,271 11,855 6,233 Expenditure account has been Total current assets 13,427 8,066 13,411 8,052 presented for the Charity only. Liabilities Approved and authorised for Creditors: amounts falling 11 (822) (1,020) (819) (1,043) issue by the Board of Trustees due within one year on 09 December 2020 and Provisions for liabilities falling signed on their behalf by: due within one year Constructive Obligation 14 (4,470) (4,270) (4,470) (4,270) Net current assets or liabilities 8,135 2,776 8,122 2,739 Lieutenant General R Wardlaw OBE Chairman Provisions for liabilities falling due 09 December 2020 after more than one year Constructive Obligation 14 (35,178) (39,466) (35,178) (39,466) Total net assets or liabilities 44,176 34,951 44,163 34,914 funds: Restricted funds 18 1,353 (50) 1,353 (50) unrestricted funds General 67,703 63,828 67,690 63,791 Welfare pension reserve (39,648) (43,736) (39,648) (43,736) Net General funds 17 28,055 20,092 28,042 20,055 designated 17 14,768 14,909 14,768 14,909 unrestricted funds after provision 42,823 35,001 42,810 34,964 for liabilities and charges The notes on pages 41 to 63 Total funds 44,176 34,951 44,163 34,914 form part of these accounts.

36 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 37 CONSOLidATEd STATEMENT Of CASh fLOWS fOR ThE YEAR ENdEd 30 JuNE 2020

Notes 2019/20 2018/19 below £000 £000 Cash flows from operating activities: Net cash provided by (used in) operating activities Note A 871 (3,568)

Cash flows from investing activities: dividends and interest from investments 2,201 2,253 Purchase of intangibles (8) 0 Purchase of property, plant and equipment (555) (313) Proceeds from sale of investments 21,026 15,409 Purchase of investments (20,758) (12,503) Net cash provided by (used in) investing activities 1,906 4,846

Cash flows from financing activities: Net cash provided by (used in) financing activities 00

Operating activities Change in cash and cash equivalents in the reporting period 2,777 1,278 Cash and cash equivalents at the beginning Note B 11,862 10,584 of the reporting period Cash and cash equivalents at the end of the reporting period Note B 14,639 11,862

NOTES A. Reconciliation of net income/(expenditure) to net cashflow from 2019/20 2018/19 £000 £000 Net income/(expenditure) for the reporting period (as per SOFA) 9,326 2,298

Adjustments for: depreciation 369 323 fixed Asset impairment/Write-off 37 0 Gains on investments (2,484) (2,679) investments donated (28) (25) dividends and interest from investments (2,201) (2,253) Losses on foreign exchange (101) (23) (increase)/decrease in stocks (124) 55 decrease/(increase) in debtors 363 (835) decrease in creditors (198) (429) decrease in constructive obligation (4,088) Net Cash provided by (used in) operating activities 871 (3,568) Cash flow B. Analysis of cash and cash equivalents 2019/20 2018/19 in year £000 £000 £000 Cash in hand and at bank 11,871 6,271 5,600 Overdraft facility repayable on demand 0 0 Notice deposits (less than 3 months) 2,768 5,591 (2,823) Total cash and cash equivalents 14, 639 11,862 2,777

38 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 NOTES TO ThE ACCOuNTS fOR ThE YEAR ENdiNG 30 JuNE 2020

1. BASiS Of PREPARATiON The Trust has applied a sensitivity assessment to future income projections and the investment portfolio, to understand the extent to which Statement of compliance reductions can be managed without impacting on The financial statements are prepared under the long term commitments and the ability to deliver historical cost convention as modified to include the charitable activities to our beneficiaries. financial revaluation of investments at fair value. The format performance is scrutinised on a regular basis by of the financial statements has been presented to the finance Committee and the Main Board and comply with the Companies Act 2006 and fRS102 therefore any shortfall in income will be identified The financial Reporting Standard applicable in the to Trustees in a timely manner. uK and ireland and the Statement of Recommended Trustees have concluded that the Trust remains Practice Accounting and Reporting by Charities in a strong financial position and operates as a (“SORP 2015”). The Charity is a Public Benefit Entity Going Concern. as defined by fRS102.

General information Significant judgments and sources The Charity is a private company limited by guarantee, estimation uncertainty incorporated in England and Wales (company number: The preparation of financial statements in 05098581) and a charity registered in England and compliance with fRS 102 requires the use of certain Wales (charity number: 1103669). The Charity’s critical accounting estimates. it also requires registered office address is: management to exercise judgment in applying the Charity’s accounting policies. The key judgements P.O Box 217, 22 Queen Street, Salisbury SP2 2EX that have been applied by management relate to: Basis of Consolidation • Constructive obligation: The valuation of the constructive obligation is based on the These financial statements consolidate the results, following assumptions: assets and liabilities of the Charity’s trading subsidiary, GWT Trading Limited, on a line by line basis. • future long term inflation rate in Nepal at 7.0% per annum. The Charity’s own Statement of financial Activities has not been presented, as permitted by section • future payments have been discounted 408 of the Companies Act 2006. The Charity’s net at 6.5% per annum. income for the year as an individual entity was a • Life expectancy for our beneficiaries is based surplus of £9,326,000 (2018/19: a surplus of on the Nepali Government Mortality tables £2,298,000 before the gain in movement of the extended to age 110 to reflect the increased constructive obligation). longevity of our beneficiaries. Going concern • There are anticipated 50 new entrants per year for each of the next five years, with an average The Trust has undertaken a robust assessment of age at joining of 73. the global economic effects of COvid-19 and its impact on the ability of the Trust to operate as a • 50% of former soldier pensions will be Going Concern. transferred to a widow. The two main areas of financial risk have been • Legacies: income is accrued when a grant of identified as: probate has been obtained (entitlement), it is possible to reliably estimate the amount • Reduction in fundraising income; and receivable (measurement) and there is probability • Reduction in valuation of the investment portfolio of receipt.

The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 41 NOTES TO ThE ACCOuNTS NOTES TO ThE ACCOuNTS

• Depreciation/Amortisation: The rates of Grant income. income from government and other Grants payable to individuals may be subject to Fund accounting depreciation for tangible fixed assets and grants, whether ‘capital’ grants or ‘revenue’ grants, conditions. Expenditure on such performance- funds held by the Trust are either: amortisation for intangible fixed assets are selected is recognised when the charity has entitlement to related grants is recognised to the extent that the by management based on their estimate of normal the funds, any performance conditions attached to recipient has complied with the conditions. • unrestricted general funds – these are funds, economic life taking into consideration the the grants have been met, it is probable that the which can be used in accordance with the Short term benefits including holiday pay are charitable objects at the discretion of the Trustees. environment in which the assets are deployed. income will be received and the amount can be recognised as an expense in the period in which measured reliably and is not deferred. the service is received. Termination benefits are • designated funds – these are funds set aside by income from other trading activities is recognised accounted for on an accrual basis and in line the Trustees out of unrestricted (general) funds for specific purposes. 2. PRiNCiPAL as earned as the related goods are provided. with fRS 102. • Restricted funds – these are unspent funds that ACCOuNTiNG POLiCiES interest and dividends Receivable. investment can only be used for particular restricted purposes income is recognised on a receivable basis and when Taxation within the objects of the Trust. Restrictions arise The following principal accounting policies have the amounts can be measured reliably. interest on irrecoverable vAT is not separately analysed and been applied: is charged directly to the Statement of financial when specified by the donor or when funds are funds on deposit is included when receivable upon raised for particular restricted purposes. notification by the relevant banking institutions. Activities (SOfA) as part of the expenditure to Income dividends receivable on assets held for investment which it relates. further explanation of each fund is included in the notes to the financial statements. income is recognised when the charity has purposes are receivable upon notification by the entitlement to the funds, any performance relevant investment institutions. Operating leases conditions attached to the item(s) of income have Rental payments under operating leases are charged Provisions been met, it is probable that the income will be Expenditure on a straight-line basis over the period of the lease. Provisions are recognised when the Group has a present legal or constructive obligation as a result of received, and the amount can be measured reliably. All expenditure is included in accordance with the past events; it is probable that an outflow of resources accruals concept. Any liabilities as a result of legal or Foreign currencies Recognition of income is deferred where conditions will be required to settle the obligation; and the constructive obligations committing the Trust to fixed assets in foreign currencies are converted to specify that such income relates to future amount of the obligation can be estimated reliably. accounting periods. Where donors specify that expenditure have been included. sterling at the exchange rate ruling at the time of purchase. investments, current assets and liabilities Where there are a number of similar obligations, funds are for specific purposes such income is Cost of raising funds comprises costs directly in foreign currencies are converted into sterling at the likelihood that an outflow will be required in included in incoming resources of restricted funds. attributable to fundraising and managing the the exchange rate ruling at the balance sheet date. settlement is determined by considering the class donations. income from donations, covenants investment portfolio. Charitable activity costs Transactions during the year in foreign currencies, of obligations as a whole. A provision is recognised and gift aid includes receipts from fundraising in the uK are incurred in running the Gurkha mainly Nepalese rupees, are converted into sterling even if the likelihood of an outflow with respect events. donations, together with the resulting Welfare Advice Centre and in supporting the at the average rate of exchange for the month in to any one item included in the same class of activities in Nepal. The costs of running the Trust’s tax credit from gift aid, are credited directly to the which the transaction was undertaken. Exchange obligations might be small. in particular: statement of financial activities when received office and staff costs have been allocated on a rate gains or losses are recorded as support costs to • Provisions are measured at the present value of by the Trust. donations and all other receipts time spent and area occupied basis to raising funds the activities to which they relate. the expenditures expected to be required to settle (including capital receipts) from fundraising are and charitable activity. the obligation using a pre-tax rate that reflects reported gross and the related fundraising costs Governance costs are apportioned on the same Pensions and retirement benefits current market assessments of the time value are reported in raising funds. basis as the office and staff costs and are disclosed in uK, the Trust makes contributions to employee of money and the risks specific to the obligation. in the notes comprising audit and legal fees and Gifts in Kind are recognised in respect of personnel individual defined contribution pension plans. The increase in the provision due to passage of funded by the Ministry of defence in roles which the costs associated with constitutional and time is recognised as a finance cost. would have to be replicated by the Trust. An statutory requirements. in Nepal, previously the Trust contributed to equivalent cost is also reported within staff costs. individual plans within a defined contribution Investments Costs in Nepal have been allocated to the direct Provident fund managed by Standard Chartered Legacies are recognised and credited directly to charitable activities. direct costs include actual Bank Nepal Limited. in addition, employees were Listed investments are stated in the balance sheet at fair value. All movements in value arising from the statement of financial activities when there grants made, provision of medical services and entitled to a one-off gratuity payment on leaving investment changes and revaluations are included is entitlement (grant of probate), there is costs related to people directly employed in that was based on length of service. following in the Statement of financial Activities (SOfA). sufficient evidence on which to value the legacy delivering one of our charitable activities. changes under the Labour Act of Nepal in 2017 the (measurement) and there is probability of receipt. Other direct costs such as staff costs and overheads gratuity liability was transferred from a defined Where a legacy is received after the end of the of the Area Welfare Centres established for the benefit to contributory scheme. Fixed assets accounting year end, but it is clear that entitlement delivery of more than one charitable activity are The cost of minor additions or acquisitions of fixed in November 2019, the Trust enrolled in the new existed prior to the year end (hence providing apportioned as other direct costs. Support costs assets under £5,000 is charged wholly to the SOfA Social Security fund of Nepal with contributions evidence of a condition that existed at the balance include staff and administrative overheads. in the year of purchase. fixed assets above this at a rate of 31% of staff salary; 20% employer sheet date) it is accrued in the statement of Support and governance costs have been allocated amount are capitalised in the financial statements at contribution and 11% employee contribution. financial activities and the balance sheet. to activity cost categories in a fair and appropriate cost. donated fixed assets are brought into account The year-end valuation will be determined taking method on a basis consistent with the use of Contributions for staff in both uK and Nepal are at an estimate of their market value at the time of into consideration the type of asset from which resources by applying person days spent on the charged to the SOfA on the basis of amounts acquisition. Land, beneficially owned by the Trust, the legacy income is derived. various activities or space occupied. provided for the period. is valued at historical cost and is not depreciated.

42 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 43 NOTES TO ThE ACCOuNTS NOTES TO ThE ACCOuNTS intangible Assets: Software which is considered Stocks 3. iNCOME as an asset in its own right, is disclosed as an The stocks of medication, project materials and intangible asset. bought-in goods for sale are valued at the lower Total income includes income transferred from the charitable trust “Gurkha Welfare Trust”, former charity Tangible Assets: Software which is an integral function of cost and net realisable value on a first in first number 1034080. The Trust is retained while it receives donations and legacy income. of enabling supporting hardware to function, is out basis. 2020 2019 considered a part of the overall tangible fixed asset. £000 £000 Financial Instruments a. Donations Amortisation Basic financial instruments transactions that donations from individuals 5,697 6,047 The costs of intangible fixed assets are amortised result in the recognition of financial assets donations from companies, trusts, clubs and organisations 837 708 over the expected useful life of the assets. and liabilities like trade and other accounts 6,534 6,755 Amortisation rates are: receivable and payable are accounted for on • Software - 33.33% per annum on a straight-line basis. the following basis: b. Legacies 6,405 6,115 • Cash and cash equivalents includes cash in hand, Depreciation deposits held at banks, other short-term highly c. Grants liquid investments with original maturities of Ministry of defence – to support operating costs in Nepal 2,966 2,937 depreciation is provided on all tangible assets except three months or less and bank overdrafts. land to write off the costs of the asset less any Bank overdrafts, when applicable, are shown d. Charitable Activities material residual value, by equal instalments over within current liabilities. Ministry of defence – for medical services 2,500 0 their expected useful lives. depreciation rates are: dfid – for water and sanitation projects in remote locations 4,040 2,650 • debtors and creditors are measured at the • Completed buildings 10% per annum on KAAA – for medical camps 95 89 transaction price less any provision for a straight-line basis impairment. Any losses arising from impairment e. Other trading activities • vehicles and equipment 25% per annum on are recognised as expenditure. fundraising events 518 355 a straight-line basis. • Bank borrowings. Liabilities for borrowings which • Computers and software 33.33% per annum on are subject to a market rate of interest are f. Investments a straight-line basis. measured at the value of the amount advanced, investment dividends and interest 1,713 1,891 Bank interest 362 for all depreciable assets, a full year’s depreciation is less capital repayments. 488 charged in the year of acquisition or completion and no depreciation is charged in the year of disposal. donations from individuals include part of the contributions made by all ranks of the Brigade of Gurkhas under Service day’s Pay Giving of £131,032 (2018/19: £235,000). in 2018/19 this included a donation from the Gurkha Contingent of the Singapore Police, who also qualify for support from the Trust. due to COvid-19 the 2019/20 donation was not received until 2020/21. donations from companies includes gifts in kind of £77,000 representing the benefit of the field director who is a serving Army Officer employed by the Ministry of defence. The benefit is determined as the cost which would be incurred if the Trust had to directly employ an equivalent position. income from investments includes interest, dividends and transitional tax credits. fundraising events include income generated by Branches (to 31 december 2019) and supporters throughout the country as well as events such as the Carol Service, the Everest Challenge and income from Trailwalker.

44 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 45 NOTES TO ThE ACCOuNTS NOTES TO ThE ACCOuNTS

4. EXPENdiTuRE Activity Beneficiaries Notes Welfare 4,479 There were 4,444 recipients at the start of the year and 35 new recipients. Grants Direct Costs Support Costs 2019/20 2018/19 pensions: 75 ceased due to their move to the uK. A detailed database of all welfare Support Governance Totals Totals pensioners is maintained based on data from British Army records. £000 £000 £000 £000 £000 £000 Payments are made on a quarterly basis and require proof of identity. a. Individual Aid following net movements, there are 4,119 recipients at 30 June 2020. Welfare pension 4,039 0 1,762 58 5,859 5,614 Care for the elderly 124 2 12 129 89 home 420 We provided grants to 420 carers in support of the most vulnerable beneficiaries. disability support 183 0 99 3 285 232 Care: Carers are provided with training in support of their responsibilities. Winter allowance 91 0 46 1 138 118 Welfare Grants & Support 776 108 433 13 1,330 880 disability 232 The number of recipients increased to 232. This data is held on the same uK welfare 250 348 4 24 626 599 Support: database as the welfare pensioners and is subject to both proof of identity and medical requirement. Total individual aid 5,463 458 2,345 101 8,367 7,532 Winter 5000+ All welfare pensioners, wives, dSG recipients and residential home residents b. Medical aid 1,107 4,163 1,102 71 6,443 5,218 allowance: supported last december received a GWT Blanket purchased through the winter allowance. c. Residential Homes 28 398 70 6 502 420 Welfare 1,647 These grants were awarded for cases of special need not covered by the other (hardship) awards. Each grant is individually assessed and approved by a senior member d. Disaster Response 0 0 00 0 1,186 grants: of staff. for 19-20 this included the second phase of the 300 homes project in which 110 earthquake resilient houses were provided. e. Community aid School projects 57 597 405 10 1,069 1,109 Residential 43 Our 2 Residential homes have a capacity of 48. There were 41 residents at the Water projects 0 3,136 503 5 3,644 3,361 care: 30 June 2020. 2 rooms in each home have become rehabilitation and respite rooms providing short - medium term care for pensioners prior to returning to Total community aid 57 3,733 908 15 4,713 4,470 their homes. The Residential homes have been locked down due to COvid-19 with no new residents during this period. Sub Total Charitable activities 6,655 8,752 4,425 193 20,025 18,826 School 41 Communities were assisted through the repair, extension or new build of a projects: f. Cost of generating funds (projects) school. Every project is arranged with and authorised by the local community fundraising 0 1,619 494 49 2,162 2,406 committee and requires a community contribution. investments 0 298 17 2 317 303 despite COvid-19, 41 minor projects were completed in-year and the two major school projects were completed by end September 2020. Total costs of 0 1,917 511 51 2,479 2,709 generating funds further information on the grants can be found in the Trustees’ Annual Report. The total charitable activity cost Total Expenditure prior 6,655 10,669 4,936 244 22,504 21,535 of £20,025,000 represents over 89% of total expenditure before the movement in the constructive obligation. to movement in Constructive Obligation Analysis of Support Costs g. Movement in 0 (4,088) 00(4,088) Constructive Obligation Total Expenditure 6,655 6,581 4,936 244 18,416 21,535 Total Governance Sub Total Sub Support Sub Total Sub Currency Professional & vehicles & Services & Legal Premises People £000 £000 £000 £000 £000 £000 £000 £000 a. individual Aid 1,589 359 196 6 195 2,345 101 2,446 b. Medical Aid 745 168 94 5 90 1,102 71 1,173 d. Residential homes 46 11 61670 6 76 e. Community Aid 564 99 210 1 34 908 15 923 f. fundraising 279 60 93 62 0 494 49 543 g. investment 10 232017 2 19 management Total 3,233 699 602 77 325 4,936 244 5,180

Basis of Time Space Time Direct Pro rata Attribution allocation spent & time spent with cost & time

46 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 47 NOTES TO ThE ACCOuNTS NOTES TO ThE ACCOuNTS

5. GOvERNANCE COSTS Key people in the Trust in uK and Nepal with delegated authority from the Trustees are the director, director GWT(N), the field director GWT(N), deputy director Plans & Resilience GWT(N) (to March 2020), Medical Apportioned governance costs were: director GWT(N), head of fundraising (to december 2019) and the head of fundraising and Communications. 2019/20 2018/19 They have combined salary and benefits cost to the Trust totalling £333,000 (2018/19: £262,000). Total Total Both the director GWT(N) and the field director GWT(N) are seconded from the British Army with their costs £000 £000 being met by the MOd. Staff employment costs 101 36 The Trust incurred £3,150 redundancy payment on the cessation of a fixed term appointment (2018/19: £0). Staff & trustee other costs 55 61 Premises costs 21 6 Office services 18 6 Trustees’ expenses, remuneration and donations Legal & professional 49 71 in 2019/20 no Trustee received any remuneration or pension but seven Trustees were either reimbursed or 244 180 expenses were paid on their behalf of £17,300: principally on travel to Nepal but also in respect of attendance at meetings at the GWT Salisbury office and in London (2018/19: five Trustees were either reimbursed or expenses were paid on their behalf of £18,500). Trustees donated a total of £2,315 (2018/19: £1,560).

6. STAff, TRuSTEE ANd GOvERNANCE COSTS Related party transactions Colonel Jody davies is a Trustee of The Gurkha Museum Trust. Colonel James Robinson was a Trustee of the a. Staff numbers Gurkha Museum, whilst a Trustee of The Gurkha Welfare Trust. Transactions between The Gurkha Welfare The trust employed the following average number of staff: 2019/20 2018/19 Trust and The Gurkha Museum Trust during 2019/20 totalled: uK: Administration & fundraising 18 18 Welfare 9 9 Payments to The Gurkha Museum Trust £2,893.00 Payments from The Gurkha Museum Trust £620.31 Nepal: individual aid inc welfare and general staff 234 214 Medical services 110 103 There are no other related party transactions. Water projects 114 124 Schools projects 7 19 Net expenditure disaster response 0 18 Net expenditure for the period is stated after charging: b. Staff costs 2019/20 2018/19 2019/20 2018/19 £000 £000 £000 £000 uK: Salaries 958 925 Audit fees uK excluding vAT Crowe u.K. LLP uK 25 - Benefits 9 8 haysmacintyre LLP - uK - 29 Social security costs 101 95 haysmacintyre LLP - Nepal - 8 Pension 85 83 haysmacintyre LLP – 17-18 adjust - 5 1,153 1,111 Nepal: CSC & Co 14 11 Nepal: Salaries 4,252 3,680 Joshi and Bhandari 5 5 Benefits 57 66 Tax Advisory Services Crowe u.K. LLP uK 2 - Pension (see Note 13) 367 329 haysmacintyre LLP - 2 Gratuity (see Note 13) 271 276 Actuarial fees K A Pandit 2 2 Severance 3 - 4,950 4,351 6,103 5,462

The number of employees whose emoluments exceeded £60,000 for the year was: 2019/20 2018/19 Number Number £60,001 - £70,000 1 1 £70,001 - £80,000 1 1 £80,001 - £90,000 1 - £90,001 - £100,000 1 1

Employer’s pension contributions for the higher paid employees were £16,000 (2018/19: £17,000).

48 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 49 NOTES TO ThE ACCOuNTS NOTES TO ThE ACCOuNTS

7. iNTANGiBLE ASSETS 9. iNvESTMENTS

Computer Software Total The historical cost of investments at 30 June 2020 (including investment cash) was £59,702,265 (2019: £000 £000 £62,167,176). 87% of the investment assets are placed in a mixed portfolio of thematic funds. Cost Listed investments 2019/20 2018/19 At 1 July 2019 00 £000 £000 Reclassifications 77 fixed interest uK 9,967 4,986 Additions 88 Overseas - 4,274 At 30 June 2020 15 15 Equities uK 526 237 Amortisation Americas 285 547 At 1 July 2019 00 Emerging markets 2,201 3,059 Amortisation (5) (5) Alternative investments 13,281 10,311 Other overseas/Non-specific region 38,449 38,127 At 30 June 2020 (5) (5) Property 1,706 2,630 Net Book Value 66,415 64,171 At 1 July 2019 00 Cash held as part of investment portfolio 2,768 5,591 At 30 June 2020 10 10 69,183 69,762

Software previously disclosed as a tangible asset under construction, was reclassified as an intangible asset Major movements in investments during the year were: on capitalisation. 2019/20 2018/19 £000 £000 Opening market value (excl. cash) 64,171 64,373 8. MOvEMENT Of TANGiBLE fiXEd ASSETS, GROuP ANd ChARiTY Purchases 20,758 12,503 disposal proceeds (21,026) (15,409) Freehold Land Leasehold Vehicles & IT Assets in Total Gains on investments 2,484 2,679 & Buildings Property Equipment Construction investments donated 28 25 £000 £000 £000 £000 £000 £000 Closing market value (excl. cash) 66,415 64,171 Cost At 1 July 2019 2,071 512 810 195 205 3,793 investment in subsidiary Reclassification 0000 (7) (7) GWT owns 100% of the issued share capital of GWT Trading Ltd, being 2 ordinary shares with a nominal value Additions 68 105 13 112 257 555 of £1. GWT Trading Ltd is registered in England and Wales No.: 02986861 and its registered office is P.O Box Asset transfers 43 0 83 23 (149) 0 2170, 22 Queen Street, Salisbury SP2 2EX. Write off 0000 (9) (9) At 30 June 2020 2,182 617 906 330 297 4,332

Depreciation GWT Trading Ltd Income Statement for the year ended 30 June 2020 At 1 July 2019 (920) (156) (740) (98) 0 (1,914) 2019/20 2018/19 impairment 0000(28) (28) £ £ depreciation (142) (62) (57) (103) 0 (364) Turnover 1 31,113 83,957 Cost of sales 2 (11,881) (41,660) At 30 June 2020 (1,062) (218) (797) (201) (28) (2,306) Gross profit 19,232 42,297 Net Book Value Administrative expenses (4,446) (5,398) At 1 July 2019 1,151 356 70 97 205 1,879 Operating profit 14,786 36,899 At 30 June 2020 1,120 399 109 129 269 2,026 Profit for the financial year before taxation 5 14,786 36,899 Tax on profit on ordinary activities 0 0 Reclassification is in respect of Software regarded as an asset in its own right, previously disclosed as a tangible Profit for the financial year after taxation 14,786 36,899 asset in construction and reclassified as an intangible asset on capitalisation.

50 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 51 NOTES TO ThE ACCOuNTS NOTES TO ThE ACCOuNTS

GWT Trading Ltd Statement of Changes in Equity 11. CREdiTORS 2019/20 2018/19 ££ ££ Group Charity P&L Share P&L Share 2020 2019 2020 2019 Capital Capital £000 £000 £000 £000 Total funds brought forward 36,899 2 79,299 2 Trade Creditors 373 332 373 324 Profit for the year 14,786 0 36,899 0 Amounts owed to group 0 0 0 33 Gift Aid payment (36,899) 0 (79,299) 0 and associated undertakings Retained earnings at year end 14,786 2 36,899 2 Accruals 159 164 157 162 Taxation & social security 37 38 37 38 The company has no recognised gains or losses other than the profit in both periods. Other Creditors 253 486 252 486 All amounts relate to continuing activities. 822 1,020 819 1,043

GWT Trading Ltd Balance Sheet at 30 June 2020 2020 2019 12. fiNANCiAL iNSTRuMENTS £ £ Current Assets Group Charity debtors 908 9,454 2019/20 2018/19 2019/20 2018/19 Cash at bank and in hand 16,162 37,632 £000 £000 £000 £000 financial assets measured at fair value 17,070 47,086 investments in shares 66,415 64,171 66,415 64,171 Creditors - amounts falling due within one year (2,282) (10,185) Net Current Assets 14,788 36,901 Other liabilities measured at fair value Net Assets 14,788 36,901 Constructive obligations (see Note 14) 39,648 43,736 39,648 43,736 Share Capital 2 2 Retained Profit 14,786 36,899 Net financial instruments 26,767 20,435 26,767 20,435 14,788 36,901

GWT Trading activity has reduced during 2019/20 as a result of COvid-19 and the cancellation of ticketed The constructive obligation is measured at fair value based on the expected amounts payable, discounted at events and the cessation of the Branch Structure at 31 december 2019, in which all activity was accounted an appropriate market rate. The Trust has no loans or overdrafts and has no forward currency contracts or for on a gross income/expenditure basis through GWT Trading. hedging arrangements.

10. dEBTORS

Group Charity 2020 2019 2020 2019 £000 £000 £000 £000 Trade debtors 12 52 12 52 Amounts owed by intercompany 0 0 0 24 Prepayments and Accrued income 148 126 148 126 Legacies 669 1,062 669 1,062 Other debtors 395 347 395 347 1,224 1,587 1,224 1,611

52 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 53 NOTES TO ThE ACCOuNTS NOTES TO ThE ACCOuNTS

13. PENSiONS ANd The Trust has no further liability 138,000 in 2019/20) and dSG of Balance at Movement in Movement in Balance at other than the monthly payments NPR 120,840 (NPR 114,000 in 1 July 2019 Actuarial Valuation Rate of Exchange 30 June 2020 LEAviNG BENEfiTS recognised in the SOfA. 2019/20) will increase with £000 £000 £000 £000 inflation at 7.0% over the long The charity provides defined in response to COvid-19, the Welfare Pension 40,374 (2,695) (1,962) 35,717 Government of Nepal has funded term (5.5% in 2018/19). contribution pension Disability Support Grant 3,362 785 (216) 3,931 arrangements for its employees in both the employer and employee • An estimated number of 4,119 the uK, and uK employees based contributions due for April 2020 welfare pensioners (2018/19: in Nepal. Each employee is able to through a direct payment on 4,444) with an average age of Total Constructive Obligation 43,736 (1,910) (2,178) 39,648 either join the Government’s behalf of employees into the SSf 80.61. There are 232 dSG NEST scheme or arrange their and has committed to making beneficiaries (2018/19: 222) in order to better reflect the disclosure requirements of fRS102, the in-year movement in the constructive own personal pension plan and payments for April and May 2020. with an average age of 58.64. obligation is included within Total Expenditure on the SOfA. in the prior year, the movement is disclosed within Other Recognised Gains and Losses on the SOfA. the charity contributes 2% of The Trust will continue to • Mortality rates are based on salary for every 1% contributed by recognise the liability for these Government of Nepal rates the employee, up to a maximum contributions until confirmation adjusted to reflect the of 10%. Contributions are charged of actual payment by the increased longevity of the to the statement of financial Government of Nepal. Trust’s beneficiaries. 15. OPERATiNG LEASES ANd OThER COMMiTMENTS activities in the year in which they are made. The assets of the plans • An estimated 1,470 ex-Gurkhas At 30 June 2020 the group’s future minimum operating lease payments are as follows: are held separately from those of 14. CONSTRuCTivE who left the service in the late 2019/20 2018/19 the charity. The contributions OBLiGATiON 1960’s and early 1970’s and 140 made by the charity in 2019/20 ex indian Army who served £000 £000 were £97,900 (2018/19: £90,000). (PROviSiONS fOR before 1947 who are not in UK Property lease Within 1 year 83 82 No further liability arose other LiABiLiTiES fALLiNG receipt of a service pension may Between 1 to 5 years 283 305 than these payments. apply for a welfare pension in Over 5 years 160 221 The retirement benefits in Nepal duE AfTER MORE the future. A provision has been previously consist of a defined ThAN ONE YEAR) included for 50 new entrants for Nepal Property Within 1 year 29 38 contribution Provident fund with each of the next five years with Between 1 to 5 years 1 7 10% contributions from both The Trust has recognised for some an average joining age of 73. Over 5 years 0 0 employer and employee. The years a long-term constructive • future payments have been Lease payments for the year which are recognised as expenses within the SOfA totalled £143,746 Provident fund is held by the obligation, as defined by SORP discounted at 6.5% pa (2018/19: (2018/19: £146,140). Gurkha Welfare Scheme Staff 2015, in respect of its welfare 5.5%), which represents an Retirement Benefit fund, an pensions. SORP 2015 requires that average yield on high-quality Capital commitments at the balance sheet date: independent body. in addition, such “constructive obligations”, bonds in Nepal. The Trust has capital commitments which are not provided for elsewhere in the accounts of £213,000 (buildings Nepali Labour Laws required even though they are not legally The value of the obligation is and related infrastructure) and £54,000 (iT). This represents the cost of the contracted commitment less the cost employers to contribute to a binding liabilities, be recognised particularly sensitive to the of payments already made. Gratuity fund. Traditionally this on a charity’s balance sheet. from exchange rate of NPR to GBP with was accumulated in a fund and 2014/15 the Trust has recognised paid to employees on leaving a low of NPR132.28/£ in July 2019, a similar obligation for the welfare a high of NPR153.01/£ in March based on years of service and an support provided through the independent gratuity fund was 2020 and an average for the year 16. ANALYSiS Of NET ASSETS BETWEEN fuNdS Of ThE GROuP ANd ChARiTY disability Support Grant (dSG) to at NPR 144.23/£. established to match the liability. the disabled children of welfare in 2017, under the Labour Act Based on the exchange rate of Unrestricted Unrestricted Restricted Total pensioners who were not able to General Designated Nepal the gratuity changed from support themselves when their NPR146.69/£, (2018/19: a defined benefit to a defined NPR138.26/£) that applied on £000 £000 £000 £000 parents were deceased. intangible assets 6 0410 contribution scheme. 30th June 2020, the value of the An independent actuarial Tangible assets 961 1,048 17 2,026 in accordance with the Labour obligation for the welfare pension assessment of the net present investments 55,463 13,720 0 69,183 Act, in November 2019, the Trust was £35,717,000. This is a reduction value of future payments for Current assets 12,095 0 1,332 13,427 enrolled in the new Social of £4,657,000 on the figure for both the welfare pension and the Current liabilities (822) 00(822) Security fund (SSf) of Nepal with 2018/19 of £40,374,000. due to dSG, as at 30 June 2020, has been Constructive obligation (39,648) 00(39,648) combined contributions at a rate the increase in authorised of 31% of staff salary; 20% obtained using the following beneficiaries, the liability to cover 28,055 14,768 1,353 44,176 employer contribution and 11% long-term assumptions: dSG has increased by £569,000 to employee contribution. The • The level of benefit agreed for £3,931,000, (2018/19: £3,362,000). The unrestricted designated fund provided for 20 year running costs of the two Residential homes majority of staff were required to welfare pensions for 2020/21, The combined total constructive and a disaster Response fund. transfer funds to the new SSf. NPR 151,200 per annum (NPR obligation is £39,648,000.

54 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 55 NOTES TO ThE ACCOuNTS NOTES TO ThE ACCOuNTS

17. uNRESTRiCTEd fuNdS Of ThE GROuP ANd ChARiTY 18. RESTRiCTEd fuNdS Of ThE ChARiTY

Balance at Incoming Outgoing Gains and Movement in Balance at Balance at Income Expenditure Transfers Balance at 1 July 2019 resources in resources in Transfers obligation 30 June 2020 01 Jul 19 30 Jun 20 the year the year £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 a. Grants to individuals: Welfare pensions & dSG 0 650 (650) 00 Designated funds Welfare grants 17 1,117 (639) 0 495 Disaster response 6,000 0 (10) 005,990 Residential homes 8,909 0 (487) 356 0 8,778 17 1,767 (1,289) 0 495 Total designated funds 14,909 0 (497) 356 0 14,768 b. Medical: General funds 20,092 13,413 (11,564) 2,026 4,088 28,055 MOd Grant in Aid Medical 0 2,500 (2,374) 0 126 Total unrestricted funds 35,001 13,413 (12,061) 2,382 4,088 42,823 Medical 0 44 (44) 00 Medical camps 0 95 (60) 0 35 0 2,639 (2,478) 0 161 unrestricted funds, both general and designated, are expendable at the discretion of the Trustees in the furtherance of the Trust’s objectives. The designated funds have been earmarked by the Trustees for particular c. Residential Homes 0 15 (15) 00 purposes, but the designations have an administrative purpose only and do not legally restrict the Trustees’ d. Water projects: discretion to apply the funds. Water projects – dfid (85) 4,049 (3,364) 0 600 The transfer-in to the designated fund (residential home) of £356,000 represents the increase in valuation of Water projects – other 0 87 (87) 00 designated funds within the investment portfolio. (85) 4,136 (3,451) 0 600 e. Schools projects: Trustees took the prudent precaution in 2011-12 of creating a designated fund to cover the running costs of Neal Turkington fund 18 00018 the residential homes for the next twenty years so that the homes would not be a drain on other activities. Schools 0 319 (240) 0 79 This fund is currently valued at £8,778,000 assuming inflation in Nepal over the period of 7.0%. 18 319 (240) 0 97 in June 2018, following advice from leading seismologists, Trustees created a designated fund to enable an f. Other grants: immediate response to any future natural disasters. This fund was used to provide a replacement earthquake vehicles & equipment 03(3) 00 resistant home for a vulnerable pensioner whose home was destroyed in a major landslip at Gulmi during the MOd grant in Aid Support 0 2,966 (2,966) 0 monsoon. The disaster Response fund is £5,990,000 at 30 June 2020. Support & infrastructure 01(1) 00 (50) 11,846 (10,443) 0 1,353

a. Grants to individuals Restricted funds for welfare pensions are obtained from individuals that regularly donate to a pensioner support fund as well as other advertising and appeals. Welfare grants include Tranche 2 of the 300 homes programmes; delivering 110 earthquake resistant homes. The 100 home fundraising campaign in 2020 was the most successful run by the Trust and exceeded the programme budget, providing restricted funds towards Tranche 3 to be delivered in 2020/21.

b. Medical The MOd Medical grant-in-aid is provided in support of medical services to our beneficiaries. Kadoorie Agricultural Aid Association (KAAA) continued to fund the medical camps for the final year. due to COvid-19 two camps were cancelled and KAAA agreed that funds could be carried forward to 2020/21.

d. Water projects dfid funding is provided through an accountable grant agreement for the rural water and sanitation programme with additional funding coming from charitable trusts and individuals. due to COvid-19, completion of seven projects was delayed with restricted funds carried forward to 2020/21 to enable completion. in September 2020, dfid merged with the fCO to become the foreign, Commonwealth and development Office (fCdO).

56 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 57 NOTES TO ThE ACCOuNTS NOTES TO ThE ACCOuNTS

e. Schools projects The following notes, numbers 19 to 24, refer to financial year 2018/19 and are included for comparative Several individuals and charitable trusts have sponsored the rebuilding of schools. due to COvid-19 the purposes only. completion of three major projects were delayed with restricted funds carried forward to 2020/21 to enable completion. A memorial fund in memory of Neal Turkington, lost in action while serving in Afghanistan, 19. COMPARATivE STATEMENT Of fiNANCiAL ACTiviTiES funded two major build projects in 2013. funds continue to be raised for this cause although there was no expenditure incurred in support of the two schools during 2019/20. fOR YEAR ENdEd 30 JuNE 2019 Notes Unrestricted Restricted 2018-19 f. Other grants General designated Total The MOd grant-in-aid is provided to support the administration and infrastructure costs of the GWT(N) £000 £000 £000 £000 while several individuals have sponsored the maintenance of our motorbikes used to assist our field staff Income from: 3 in reaching remote locations. donations and legacies donations 3a 4,550 0 2,205 6,755 Legacies 3b 6,113 026,115 Grants Ministry of defence 3c 002,937 2,937 Charitable activities 3d department for international development 002,650 2,650 KAAA 0089 89 Other trading activities fundraising Events 3e 296 0 59 355 investments 3f 2,238 0 15 2,253 Total 13,197 0 7,957 21,154

Expenditure on: 4 Raising funds fundraising 4f 2, 406 002,406 investment management Costs 4g 303 00303 Charitable activities individual aid 4a 3,760 0 3,772 7,532 Medical Aid 4b 4,918 0 300 5,218 disaster response 4d 602 0 584 1,186 Residential homes 4c 0 414 6 420 Community aid 4e 792 0 3,678 4,470

Total 12,781 414 8,340 21,535

Net (expenditure)/income before 416 (414) (383) (381) other gains and losses Other gains and losses Net gains/(losses) on investments 8 2,679 002,679

Net (expenditure)/income 3,095 (414) (383) 2,298 Transfers between funds 14 & 15 (344) 359 (15) 0 2,751 (55) (398) 2,298 Other recognised gains/(losses) Movement in constructive Obligation 13 1,676 001,676 Profit & loss revaluation gain/(loss) (23) 00(23) Net Movement in funds 4,404 (55) (398) 3,951 Reconciliation of funds funds brought forward 15,688 14,964 348 31,000 Total Funds Carried Forward 20,092 14,909 (50) 34,951

The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 59 NOTES TO ThE ACCOuNTS NOTES TO ThE ACCOuNTS

20. COMPARATivE STATEMENT Of EXPENdiTuRE 2018-19 22. COMPARATivE ANALYSiS Of NET ASSETS BETWEEN fuNdS, GROuP ANd ChARiTY 2018-19 Grants direct costs Support costs 2018/19 Support Governance Totals Unrestricted Unrestricted Restricted Total Charitable activities £000 £000 £000 £000 £000 General Designated a. Individual aid Welfare pensions 4,196 0 1,371 47 5,614 £000 £000 £000 £000 Care for the elderly 87 01189 Tangible assets 789 1,090 0 1,879 disability support 159 0 71 2 232 Winter allowance 81 0 35 2 118 investments 55,943 13,819 0 69,762 Welfare grants 729 0 144 7 880 Current assets 8,116 0 (50) 8,066 uK welfare 250 330 4 15 599 Current liabilities (1,020) 00(1,020) Total 5,502 330 1,626 74 7,532 Constructive obligation (43,736) 00(43,736) b. Medical aid 938 3,396 840 44 5,218 c. Residential homes 29 334 53 4 420 20,092 14,909 (50) 34,951 d. Disaster Response 0 982 194 10 1,186 The unrestricted designated fund provides for 20 year running costs of the two Residential homes and a disaster e. Community aid Response fund. Schools projects 207 582 310 10 1,109 Water projects 0 2,957 399 5 3,361 Total Community Aid 207 3,539 709 15 4,470 23. COMPARATivE uNRESTRiCTEd fuNdS Charitable activities total 6,676 8,581 3,422 147 18,826 Of ThE GROuP ANd ChARiTY 2018-19 Raising funds Balance at Incoming Outgoing Gains and Movement Balance at f. Fundraising 0 1,820 554 32 2,406 1 July 2018 resources resources Transfers in obligation 30 June 2019 g. Investment management 0 281 21 1 303 in the year in the year Raising funds total 0 2,101 575 33 2,709 £000 £000 £000 £000 £000 £000 Designated funds Total 6,676 10,682 3,997 180 21,535 Disaster Response 6,000 00006,000 Residential homes 8,964 0 (414) 359 0 8,909 Total designated funds 14,964 0 (414) 359 0 14,909 21. COMPARATivE ANALYSiS Of SuPPORT COSTS 2018-19 General funds 15,688 13,197 (12,781) 2,312 1,676 20,092 Total unrestricted funds 30,652 13,197 (13,195) 2,671 1,676 35,001

unrestricted funds, both general and designated, are expendable at the discretion of the Trustees in the furtherance of the Trust’s objectives. The designated funds have been earmarked by the Trustees for particular Total Governance Sub Total Sub Support Sub Total Sub Currency Professional & vehicles & Services & Legal Premises People purposes, but the designations have an administrative purpose only and do not legally restrict the Trustees’ £000 £000 £000 £000 £000 £000 £000 £000 discretion to apply the funds. a. individual Aid 1,315 304 138 3 (134) 1,626 74 1,700 Trustees took the prudent precaution in 2011-12 of creating a designated fund to cover the running costs of b. Medical Aid 677 156 73 2 (68) 840 44 884 the residential homes for the next twenty years so that the homes would not be a drain on other activities. c. disaster Response 156 36 17 1 (16) 194 10 204 in June 2018, following advice from leading seismologists, the Trustees created a designated fund to enable d. Residential homes 42 10 40(3) 53 4 57 an immediate response to any future natural disaster. This fund remains at £6,000,000 at 30 June 2019. e. Community Aid 588 71 75 1 (26) 709 15 724 f. fundraising 317 69 126 42 0 554 32 586 g. investment management 13 242 0 21 1 22 Total 3,108 648 437 51 (247) (3,997) 180 4,177

Basis of Time Space Time Direct Pro rata Attribution allocation spent & time spent with cost & time

60 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 61 NOTES TO ThE ACCOuNTS NOTES TO ThE ACCOuNTS

d. Water projects 24. COMPARATivE RESTRiCTEd fuNdS Of ThE ChARiTY 2018-19 dfid award a grant for the rural water and sanitation programme with additional funding coming from charitable trusts and individuals. Balance at Income Expenditure Transfers Balance at 01 Jul 18 30 Jun 19 e. Schools projects £000 £000 £000 £000 £000 Several individuals and charitable trusts have sponsored the rebuilding of schools. A memorial fund in memory a. Grants to individuals: of Neal Turkington, lost in action while serving in Afghanistan funded two major build projects in 2013. funds Welfare pensions & dSG 0 548 (548) 00continue to be raised for this cause although there was no expenditure incurred Welfare grants 0 897 (880) 0 17 in support of the two schools during 2018-2019. Winter allowance 0 80 (80) 00 General individual aid 00000f. Other grants 0 1,525 (1,508) 0 17 The MOd grant-in-aid is provided to support the administration and infrastructure costs of the GWT(N) while b. Medical: several individuals and trusts have sponsored the upgrading of our medical clinics, motorbikes and all-terrain Medical 0 212 (212) 00vehicles to assist our field staff in reaching remote locations. Medical camps 0 88 (89) 00 0 300 (300) 00 c. Residential Homes: 06(6) 00 d. Disaster Response: 0 313 (313) 00 e. Water projects: Water projects - dfid 333 2,662 (3,080) 0 (85) Water projects – other 0 118 (118) 00 333 2,780 (3,198) 0 (85) f. Schools projects: Neal Turkington fund 14 40018 Schools 0 47 (47) 00 51 (47) 0 18 g. Other grants: vehicles & equipment 0 41 (26) (15) 0 MOd grant in Aid 0 2,937 (2,937) 00 Support & infrastructure 00000 uK Admin & fundraising 05(5) 00 348 7,958 (8,340) (15) (50)

a. Grants to individuals Restricted funds for welfare pensions are obtained from individuals that regularly donate to a pensioner support fund as well as other advertising and appeals. One supporter continues to fund the Winter Allowance in 2018-19. b. Medical Several charitable trusts have specifically sponsored the expansion of the field medical and care services and Kadoorie Agricultural Aid Association fund the medical camps. c. Disaster response following the disastrous earthquakes in Nepal in April 2015 an appeal was launched to enable us to help individuals and communities in the affected areas. The disaster Response programme was completed at 31 October 2018.

62 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 63 64 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 The Gurkha Welfare Trust Annual Report and Accounts, Year ended 30 June 2020 65 THE

Registered Charity Number: 1103669 Company Limited by Guarantee Number: 05098581 Registered in England

The Gurkha Welfare Trust P.O Box 2170 22 Queen Street Salisbury SP2 2EX

www.gwt.org.uk 01722 323 955