ChoraChori

A Charitable Incorporated Organisation (CIO)

Report and Financial Statements For the Year Ended 31st December 2016

Charity Number: 1159770

ChoraChori Annual Report and Accounts

2016

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Content

Page

Reference and administrative information 2 Chairman of Trustees’ Statement 3 Report of the Trustees

4

Independent Examiner’s Report

10

Statement of Financial Activities

11

Balance Sheet

12

Notes to the Financial Statements

13

ChoraChori Annual Report and Accounts

2016

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Reference and Administrative Information

Charity Name ChoraChori

Charity Registration No 1159770

Patron

Zack Feather

Trustees

Beverley Holmes (Chairman) Julie Graham Clotilde Hunter Registered Office Three Ways, Ledstone, Kingsbridge, Devon TQ7 2HQ Telephone: 01548 852816 E-mail: philip@chorachori.org.uk Website: www.chorachori.org.uk Independent examiner Michael Jonathan Trigg, FCA 19 Old Exeter Street, Chudleigh, Newton Abbot, Devon, TQ13 0LD Bankers NatWest Ltd, 2 Duke Street, Dartmouth, Devon TQ6 9PJ

ChoraChori Annual Report and Accounts

2016

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Report of the Trustees

Introduction The Trustees present their Annual Report and the Financial Statements of ChoraChori for the period ended 31st December 2016. The Financial Statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Articles of Association, the Statement of Recommended Practice 2005 (updated 2008) and the Companies Act 2006. ChoraChori is a Charitable Incorporated Organisation (CIO), registered with The Charity Commission on 5th January 2015. ChoraChori is the Nepali word for “children”.

Background to ChoraChori ChoraChori was established to support the work of Nepali NGO ChoraChori Nepal (CC-N) which was founded by former colleagues of Beverley and Philip Holmes in 2014. CC-N works primarily to rescue, repatriate, rehabilitate and reintegrate trafficked and displaced Nepali children from India. However, when called upon by the Nepal authorities, it will provide ad hoc child welfare support. This extended to providing earthquake relief and reconstruction in the wake of the 2015 quakes.

Structure and Governance

Patron Following his appearance on “Undercover Angel” on National Geographic television channel, Mr Zack Feather became the Patron of the charity. A successful businessman and entrepreneur, he has provided invaluable support throughout this reporting period including in the preparation of the charity’s business plan. Zack has also been a major donor, providing funds for inter alia the rebuilding of a school in Nepal, the set up costs of our Kathmandu refuge and the redesign of the charity’s website.

Kathmandu refuge boys celebrate Holi, the festival of colours

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2016

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Trustees There are three life Trustees:

Mrs Beverley Holmes: Beverley is a former television producer who joined the charitable sector in 2002 after marrying her husband Philip. She became the Deputy Director of The Esther Benjamins Trust (which had been founded by Philip) and went to live and work in Nepal between 2004 and 2012. During that time she developed a strong personal and professional relationship with Shailaja CM, who is the Founder/Co-Director of CC-N.

Ms Julie Graham: Julie is a graduate in social work from Queen's University Belfast, but currently working within the education welfare sector in Northern Ireland. She has volunteered twice in Nepal, on both occasions working with deprived and marginalised children at Bhairahawa on the Indian border. During that time she saw the best and worst of the country, the latter including gender and caste discrimination and grinding poverty. Notwithstanding that she developed a huge respect and love for Nepal's resilient people and its children.

Mrs Clotilde Hunter: Clotilde grew up and trained as an Occupational Therapist in France. She moved to the UK in 1998 and after meeting her British husband, the UK became her second homeland. In 2009 they decided to adopt Nepal as their third homeland, meeting Beverley and Philip Holmes in Kathmandu. Since then the life of destitute children and young women in Nepal has been close to her heart and she has fundraised for Nepal children's charities.

The founding (life) Trustees are a group of friends who came together determined to make a difference to the lives of Nepal’s most desperate children. The Board plans to recruit additional Trustees according to the needs of a growing charity but these will be for a period of no more than three years, extendable. Upon joining the Board, new Trustees are provided with information on the charity’s history and plans, the role and responsibilities of Trustees, the governing document, key policies and the minutes of recent Board meetings. Trustee meetings have been held broadly on a quarterly basis. Staff and volunteers Lt Col (retd) Philip Holmes assumed the appointment of CEO of the charity on 1st May 2016. He works from home, this acting as the charity’s office. ChoraChori has had four Nepal volunteers who supported the Kathmandu refuge at the end of the year, namely Rory Buckworth, Arthur Woods, Philip Hunter and Toby Foggo. A UK volunteer, Jonathan Davies, has provided his professional services in the design of our future girls’ trauma management centre. Other professional services The website was designed and is maintained by the company “First Click”. The accounting firm Bibbys in Kingsbridge provides payroll support.

The charity’s network

Nepal partners Under Nepalese law overseas charities must implement their projects in Nepal through local NGOs. ChoraChori has one Nepal partner, CC-N, and this is likely to remain the case for the foreseeable future. Through CC-N we have built a strong working relationship with Nepal’s Central Child Welfare Board.

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2016

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National and International partners ChoraChori has worked in partnership with UK charity Guy’s Trust and with German charity Hatemalo in the earthquake reconstruction work. We received grant funding from 11 grant-making Trusts in 2016.

Objects of the charity ChoraChori was set up with the broad Object of “To advance such charitable purposes (according to the law of England and Wales) within Nepal as the Trustees see fit”. In practice it works primarily for children. It has the Mission Statement of: “To rescue, support and protect trafficked Nepalese children from India, empowering them and their families to give evidence leading to the imprisonment of all known major traffickers thereby preventing future trafficking.” The activities currently consist of:

Rescue and repatriation of displaced or trafficked Nepalese children from India, their rehabilitation and reintegration with families and society. Immediately post repatriation CC-N provides temporary shelter at its refuge in Kathmandu. For those children who cannot be reunited with their families CC-N identifies alternative care arrangements, education and training.

Educational support at three schools in the hills above Kathmandu. This work will be phased out in 2017.

Providing educational and training support to a group of 10 vulnerable girls from Tipling, Dhading District. Tipling was devastated by the 2015 earthquakes

Managing individual child welfare cases on an ad hoc basis.

Operational activities in the reporting period Rescue and repatriation of children from India Scores, if not hundreds, of Nepali children crossed into India following the 2015 earthquakes in their quest to earn an income for themselves and their families. For many this became a case of “out of the frying pan and into the fire” as they’d frequently be picked up by the police or NGO workers who’d find them at railway stations. They would then enter Indian children’s “shelters” where they would be detained in fairly Dickensian conditions without anyone making an effort to identify their origins and reunite them with their families. Since August 2015 CC-N has retrieved 71 children, returning most to their families. This is highly emotional work with parents and siblings often believing the returnee to have died. Unfortunately we have been unable to reunite 15 children with families because the families cannot be found or the children might have been fleeing domestic abuse in the first place. These boys stay at our Kathmandu refuge where they are cared for to a very high standard and attending the local school pending alternative long term arrangements being identified. This important rescue work was profiled twice in 2016 in the leading English language weekly, the Nepali Times.

An emotional reunion for two

brothers with their mother

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2016

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Earthquake Relief In this financial year we completed the rebuilding of three earthquake-destroyed village schools. This was a hugely challenging programme given the remoteness and inaccessibility of the schools and the soaring costs associated with national disruption at the start of the year. Unfortunately – and unavoidably – the projects ran significantly over budget. We funded the programme with grants from Guy’s Trust, Hatemalo, private donations, community fundraising and through the “Educating Reeti” crowdfunding campaign but in spite of our best efforts ended up with a deficit at the end of the year. We are optimistic that this funding shortfall can be addressed by further grant funding in early 2017. Educational support In June 2016 we were approached by Jesuit priests who asked our assistance with completing the education of trafficking-prone girls from Tipling, Dhading District. Their villages and prospects had been devastated by the earthquakes and although these ten girls had completed the coveted School Leaver’s Certificate examination (tenth grade) they no longer had the possibility of progressing their education locally. So we agreed to bring these girls, aged 16-18, to Kathmandu where they could attend the local college. Our aim is to do this over two years, combining their education with skills training.

Future Plans Objectives in Nepal:

Continued rescue of children from all over India – we assume that we will repatriate up to 80 in the 2017 calendar year, returning 60 to their families

Subject to grant funding coming available, rescue operations extended to trafficked Nepali girls in India

We will build a new girls’ trauma management centre at Godawari, collocated with the existing boys’ refuge. This should be complete by mid-2017 after which we can begin a new service in Kathmandu. The capital works will be fully covered through funds raised by three cyclists in the “Taking the High Road” challenge.

Objectives in UK:

Appointment of two additional Trustees for 2-3 year tenures

Growth of reserves towards six months of operating costs

One of three new schools rebuilt by CC-N

“The Tipling Girls”

ChoraChori Annual Report and Accounts

2016

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Financial Review

Clearly this has been a very positive year for us financially with income showing a 42% increase on the previous year in spite of this being a very difficult fundraising climate. However our expenditure more than doubled and our reserves levels have remained at more or less the same level although they have dropped as a proportion of operating costs. We have also a residual deficit on our school building projects, a reflection of an over-run in budget following national unrest in Nepal. However we are optimistic that this can be addressed through continued engagement with school-based fundraising in 2017. Our fundraising approach in 2016 was broad-based including:

An online crowdfunding campaign in the summer entitled “Educating Reeti” for our education projects

A Christmas Appeal and associated dinner night in December to raise funds for our Kathmandu refuge

The Taking the High Road cycle challenge

The CEO, Philip Holmes, and Trustee Clotilde Hunter running the Paris Marathon, followed by Clotilde also completing the Edinburgh Marathon

A series of applications to Foundations

Continued generous public support from our Patron, other individuals, schools and churches We will continue to cast the net widely in 2017 and are confident that growth can be sustained and reserve levels supplemented to a more satisfactory level.

Reserves policy The Trustees aspire to holding unrestricted funds equating to six months of operating costs and will continue to work towards achieving that goal through donations, grants, challenges and events.

Public Benefit The Trustees believe that ChoraChori has complied with the Public Benefit provisions of the Charities Act. During 2016 the Public Benefit of the various activities could be summarised as follows: Children helped through mid-day meals: 85 Children helped through school reconstruction: 115 Children helped through rescue/repatriation: 31 Boys cared for at the Kathmandu refuge: All 71 children rescued since August 2015 have stayed at the refuge, 15 remain at the end of 2016

Risk management

The Trustees have considered the risks to which ChoraChori may be exposed and a risk analysis appears in the Business Plan. The Trustees are content that the overall risks to the Foundation are mitigated to an acceptable level.

Conclusion

In conclusion this has been a second highly successful year for ChoraChori. We look forward to further growth in 2017 in spite of a more challenging fundraising climate.

ChoraChori Annual Report and Accounts

2016

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STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2016

Unrestricted funds

Restricted Funds

Total 2016

Total 2015

INCOMING RESOURCES Notes

£

£

£

£

Incoming resources from generated funds

Voluntary Income 2

32,054

126,639

158,693

111,953

32,054

126,639

158,693

111,953

Incoming resources from charitable activities

-

-

-

-

TOTAL INCOMING RESOURCES

32,054

126,639

158,693

111,953

RESOURCES EXPENDED COST OF generating funds

Cost of generating voluntary income 3

30,977

-

30,977

550

30,977

30,977

550

Cost of charitable activities

Project costs 3

93,963

93,963

58,211

Governance 4

600

600

480

TOTAL RESOURCES EXPENDED

31,577

93,963

125,540

59,241

NET INCOMING RESOURCES

477

32,676

33,153

52,712

Transfer between funds

-

-

-

-

NET MOVEMENT IN FUNDS

477

32,676

33,153

52,712

FUND BALANCES BROUGHT FORWARD

18,603

34,109

52,712

-

FUND BALANCES AT 31 December

19,080

66,785

85,865

52,712

The notes on pages 13-16 form part of these financial statements

ChoraChori Annual Report and Accounts

2016

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NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2016

1. Accounting Policies 1.1 Basis of preparation

The financial statements have been prepared under the historical cost convention and in accordance with the Statement of Recommended Practice ‘Accounting and Reporting by Charities’ (SORP 2005, updated 2008) and applicable UK Accounting Standard and Charities Act 2011.

1.2 Incoming Resources Grants and donations are included in the SOFA when the charity has unconditional entitlement to the resources. Incoming resources from tax reclaims are included at the same time as the gift to which they relate. Investment income is included in the accounts when receivable. Incoming resources from charitable activities are only included in the SOFA in the period in which they are earned.

1.3 Resources Expended All expenditure is accounted for on an accruals basis and is recognised when there is a legal or constructive obligation to pay for expenditure. Overhead costs including fundraising costs are managed at 15% of grant income. Governance costs consist of the independent examiner’s fee and professional costs associated with the running of the charity. Costs are either allocated directly to the Charity’s activities or apportioned between different activities at the discretion of the Trustees.

1.4 Tangible Fixed Assets

These are capitalised if they can be used for more than one year, and cost more than £500. They are valued at cost or a reasonable value on receipt.

1.5 Accumulated Funds Restricted funds are subject to specific conditions by donors on how they may be used; the purposes and uses of the restricted funds are set out in the notes to the accounts.

ChoraChori Annual Report and Accounts

2016

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2 Analysis of Incoming Resources

Unrestricted Funds

£

Restricted Funds

£

Total 2016

£

Total 2015

£ Donations and Grants Shree Chapakharka School - 5,376 5,376 8,778 Shree Tulasadevi School - 4,410 4,410 11,333 Rayale School - 4,121 4,121 15,126 Child Rescue from India - 15,354 15,354 38,905 Girls’ Trauma Management Kathmandu Refuge Operation Patron Fund Education Fund Child Welfare Fund Gabriel’s Fund Unrestricted Funds

- - - - - -

32,054

49,037 15,831

8,105 17,783

2,400 4,222

49,037 15,831

8,105 17,783

2,400 4,222

32,054

4,410 - - - - -

33,401

Total 32,054 126,639 158,693 111,953

3 Analysis of Resources Expended

Unrestricted Funds

£

Restricted Funds

£

Total 2016

£

Total 2015

£ Costs of Generating Funds Staff Costs

Website Costs Travel & Subsistence

23,193 1,460 4,845

- - -

23,193 1,460 4,845

- -

493 IT & Accountancy

Postage & Stationery Training Just Giving

206 984 163 126

- - - -

206 984 163 126

57 - - -

Total 30,977 - 30,977 550

Project Costs

Chora Chori, Nepal - - - 12,715 Shree Chapakharka School - 16,550 16,550 8,778 Shree Tulasadevi School - 11,811 11,811 12,260 Rayale School - 4,728 4,728 15,126 Child Rescue from India - 11,897 11,897 9,322 Girls’ Trauma Management Centre

Kathmandu Refuge Operation Patron Fund Education Fund Child Welfare Fund

- - - - -

1,369 35,175

4,117 6,349 1,967

1,369 35,175

4,117 6,349 1,967

Total - 93,963 93,963 58,211

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4 Governance Costs

Unrestricted Funds

£

Restricted Funds

£

Total 2016

£

Total 2015

£ Independent Examiner’s Fee 600 - 600 480

Total 600 - 600 480

5 Creditors and Accruals 2016

£ 2015

£

Accruals and deferred income 1,773 480

Total 1,773 480

6 Restricted Funds

Funds held Fund Name Purpose Shree Chapakharka School Funds received towards the rebuild of Shree Chapakharka

School following the earthquake Shree Tulasadevi School Funds received towards the rebuild of Shree Tulasadevi

School following the earthquake. Rayale School Funds received towards the rebuild of Rayale School

following the earthquake. Child Rescue from India Funds raised for the rescue of displaced and trafficked

Nepalese children from India Girls’ Trauma Management Centre Formerly “Kathmandu Refuge Build”, funds raised by the

“Taking the High Road” cycle challenge towards building a girls’ trauma management centre in Kathmandu

Kathmandu Refuge Operation Funds raised towards the operation of a boys’ refuge in Kathmandu that acts as a transit shelter for children rescued from India prior to family reunification

Patron Fund Funds donated by our Patron towards supporting needy individuals identified during his visit to Nepal

Education Fund Funds raised through the “Educating Reeti” campaign towards supporting education projects and revenue costs at the above named three schools.

Child Welfare Fund Funds raised in support of individual children and for “The Tipling Girls”

Gabriel Fund Funds raised in memory of Gabriel Lahs-Hughes and in support of children/young people. The Trustees will decide the specific use of these funds in 2017 through discussion with the family.

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2016

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7 Movement of Funds

Fund balances

b/f £

Incoming resources

£

Resources expended

£

Transfers

£

Fund balances

c/f £ Restricted Funds Shree Chapakharka School - 5,376 16,550 - (11,174) Shree Tulasadevi School

Rayale School Child Rescue India Girls’ Trauma Management Kathmandu Refuge Operation Patron Fund Education Fund Child Welfare Fund Gabriel Fund

- -

29,699 4,410

- - - - -

4,410 4,121

15,354 49,037 15,831

8,105 17,783

2,400 4,222

11,811 4,728

11,897 1,369

35,175 4,117 6,349 1,967

-

- - - - - - - - -

(7,401) (607)

33,156 52,078

(19,344) 3,988

11,434 433

4,222

Total Restricted Funds 34,109 126,639 93,963 - 66,785

Unrestricted Funds General 18,603 32,054 31,577 - 19,080

8 Allocation of Net Assets between Funds

Unrestricted Funds

£

Restricted Funds

£

Total 2015

£

Total 2016

£ Net Current Assets 19,080 66,785 85,865 52,712

Total Net Assets 19,080 66,785 85,685 52,712

9 Transactions with Related Parties

Founding Trustee Philip Holmes stepped down from the Board to assume the appointment of CEO in May 2016. His wife Beverley remains as Chairman of the Board. This was permitted under the constitution of the charity.

Expenses were reimbursed to Trustee Julie Graham in respect of a monitoring and evaluation visit to Nepal and for her attendance at a major fundraising event in London.

10 Taxation

The charity is not liable to taxation on the revenue from its primary activities or on its investment income as it is a registered charity.

11 Controlling party

The charity was controlled by the board of Trustees throughout the current year.