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2023-03-31-accounts

Company Limited by Guarantee Registration Number: 04185635 (England and Wales)

Charity Commission Registration Number: 1087210 OSCR Registration Number: SC045460

The St. John and Red Cross Defence Medical Welfare Service

(LIMITED BY GUARANTEE)

Annual Report and Financial Statements For the Year Ended 31 March 2023

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THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE (LIMITED BY GUARANTEE)

LEGAL AND ADMINISTRATION

Patron HRH The Duchess of Edinburgh
Trustees Mrs M Burton (Chairman) -appointed November 2017
Brigadier (Rtd) D Keenan OBE (Deputy Chairman)- appointed August 2012
- resigned February 2023
Brigadier (Rtd) M T Griffiths CBE QPM - appointed November 2015
Mr A Buckham -appointed September 2013
Mr P Taylor - appointed October 2017
Mr J Macnamara - appointed October 2017
Mrs J Lynch - appointed September 2020
Colonel C Waterworth MBE - appointed May 2022
Chief Executive Officer Paul Gaffney
Other Key Management Personnel Abby Dryden – Operations Director
Dermot Stephens – Head of Finance – appointed July 2022
Jo Wyatt – Head of Finance – resigned June 2022
Principal and Registered Office The Old Stables
Redenham Park
Redenham
Near Andover
Hampshire
SP11 9AQ
01264 774000
www.dmws.org.uk
Company registration number 04185635
Charity registration number 1087210
OSCR registration number SC045460
Auditors Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Main bankers National Westminster Bank plc
48 Blue Boar Row
Salisbury
Wiltshire
SP1 1DF

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THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE (LIMITED BY GUARANTEE)

CONTENTS

Page
Trustees’ Report 4 – 12
Statement of Trustees’ Responsibilities 13
Report of the Independent Auditors 14 – 17
Statement of Financial Activities 18
Balance Sheet 19
Cash-flow Statement 20
Notes to the Financial Statements 21 – 33

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THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE DMWS

(LIMITED BY GUARANTEE)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

The trustees (who are also the directors of the company) present their report (which is combined with the directors’ report for purposes of company law).

The financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102).

STRUCTURE, GOVERNANCE AND MANAGEMENT

Background and Constitution

History - DMWS was formed from The Service Hospitals Welfare Department (SHWD) in 2001 and it has been providing a Hospital Welfare Service under contract to the Ministry of Defence (MoD). The SHWD was originally a joint creation of the Venerable Order of St John of Jerusalem and the British Red Cross Society. Initially, during World War I, the Joint Committee drawn from both charities was tasked to provide personnel to assist the medical officers in military hospitals worldwide, including on deployment in field units. At the outset of World War II, they were asked to raise an organisation, chaired by Edwina, the first Countess Mountbatten, wife of Lord Louis Mountbatten, this time to provide welfare support in Service Hospitals and medical facilities all over the world. The SHWD came into being in 1943 and adapted their role to complement and underpin the clinical work of their medical colleagues. Wherever the Military Medical Services were, so welfare officers would be found, working within both established and field medical units. This included deployment into Aden, Palestine, Egypt, Malaya, Iraq and Afghanistan to name but a few. Now in our 80th year, and with thanks to our generous supporters, we continue our mission to help service personnel, veterans, and others on the frontline during their most critical time of need. What is more, we have been able to diversify and adapt our service to meet the needs of a changing cohort of beneficiaries and believe that our service is as relevant today as it was 80 years ago.

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THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE DMWS (LIMITED BY GUARANTEE)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

DMWS is directed by the Board, which is comprised of Trustees, the Chief Executive Officer (“CEO”) and the organisations Secretary. The CEO, Welfare Officers and other members of staff are salaried positions. The CEO, Welfare Officers and other members of staff are appropriately qualified or undertake relevant professional developmental training to ensure that they meet the DMWS Code of Practice. The processes and policies and all activities are monitored through the continuing quality assurance programme that is audited internally and externally as part of our continued commitment to ISO 9001. Additionally, DMWS maintain high standards of information governance and cyber security through the application of robust policies and procedures and staff training. Cyber governance is externally accredited and verified by the award of Cyber Essentials Plus certification, the leading national standard for cyber security.

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THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE DMWS (LIMITED BY GUARANTEE)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

The trustees, who meet as a Board at least every three months, set the strategy and policy for the service. The strategy is reviewed regularly and a Strategic Plan out to 2026 has been developed, which aims for DMWS to be the service provider of choice in the welfare arena, and to raise the standard of welfare delivery across all sectors. The Chairman, on behalf of the Board, monitors implementation of that policy by regular contact with the CEO.

DMWS is registered with the Charity Commission for England and Wales (1087210) and the Office of the Scottish Charity Regulator (045460).

Trustees

The number of trustees shall be not less than two and is not subject to a maximum. Under the Articles of Association of the Company the Priory of England and the Islands of the Order of the Hospital of St John of Jerusalem (“the Priory”) and the British Red Cross Society (“the Society”) the Board of Trustees of DMWS shall include up to two trustees proposed by the Priory and up to two trustees proposed by the Society. An annual skills audit is conducted by Mike Griffiths who identifies the skills required in trustees and recruitment against that need is conducted based on the strategic requirement for expertise to be reflected appropriately among Board Members. Trustees may serve for terms of three, six or nine years.

The following Trustees were in office on 31 March 2023 and served throughout the year:

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Maryanne Burton Mike Griffiths CBE QPM
James Macnamara
Andrew Buckham
Paul Taylor
Jocelyn Lynch
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Jocelyn Lynch
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Clare Waterworth MBE

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THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE DMWS (LIMITED BY GUARANTEE)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

Trustees’ Remuneration and Expenses

None of the trustees has received any remuneration or similar benefits from DMWS. Out of pocket travel and subsistence expenses of £857 (2021/22: £1,197) were reimbursed to 3 trustees (2021/22: 4). The charity purchased professional indemnity insurance on the behalf of the trustees in the year. The premium on this insurance was £4,200 (2021/22 £4,938).

Trustees’ Induction and Training

On appointment, trustees are provided with a comprehensive induction package which ensures they understand their legal and fiduciary responsibilities and trustee briefings are delivered on appointment and throughout the year including visits to DMWS staff in the field. This year, trustees have held two ‘away days’ to do deep dive sessions on key aspects relating to the future development of the organisation.

Employees

DMWS is an equal opportunities employer and applies objective criteria to assess merit. Recruitment and selection for promotion are based on merit and aptitude for post. Briefing papers, policies and operating procedures are reviewed annually and are the principal mechanism for communicating changes in law, policy and process to the staff, and are made readily available to all staff members.

There is a comprehensive training system which has been implemented to ensure all employees are appropriately trained for their role, technically and in terms of leadership and management. This starts with induction, which is compulsory for all staff, including trustees, and is followed up by role-specific professional development and a package of personal development. Training for Welfare Officers includes attendance at the Diploma for Welfare Professionals, a course developed by DMWS to ensure the professionalism of Welfare is standardised, and that DMWS are leading the way in this field.

All probationary staff are monitored and reviewed closely throughout probation by their line managers. All Welfare Officers have access to personal clinical supervision which is provided by DMWS as part of our duty of care in order to support them as part of their development and additional provision is made available in particularly challenging instances. DMWS strives to have a culture of inclusivity, mutual respect and of valuing individuals and their differences. We recognise and value the benefits of Caring for those who serve employing individuals from varied backgrounds and are

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DMWS Team Skills
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committed to cultivating a creative and inclusive workplace. DMWS as an employer and service provider takes all reasonable measures to ensure its practices are free from discrimination, are inclusive, and accessible to all. DMWS upholds the rights of service users, employees, workers and volunteers to be treated fairly and without discrimination on any grounds.

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THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE DMWS (LIMITED BY GUARANTEE)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

Salaries for all staff are reviewed within the annual budget and any increases are subject to Board approval from recommendations made via the Remuneration Committee. This applies to the salaries of the Senior Management Team, which are also reviewed annually by the Remuneration Committee and are set in line with salaries of similar roles in the charity sector. The total employee benefits for the Senior Leadership Team for the year 2022/23 were £187,259 (2021/22: £175,884).

OBJECTIVES AND ACTIVITIES

Principal Objects

The principal objects of DMWS are:

DMWS retains the humanitarian ethos of our forebears in St John and Red Cross and 100% of our activity is in direct support of delivering public benefit to those who serve and those who have served in the past. This applies to the future strategic direction of the organisation in our intent to become the national provider of choice for welfare support in the clinical care pathway.

Aims and Objectives

Diversification and Growth: DMWS welfare officers and clinical staff provide a variety of hospital welfare services ranging from routine day-to-day assessments through to highly complex practical and emotional support. Our support for the Veterans community now accounts for 50% of our case work. These services are currently provided in hospitals, or within the medical pathway, such as personnel recovery centres, in the United Kingdom and Cyprus. New work has followed on from the Board’s decision to diversify into broader areas within the Defence environment and beyond to the NHS and Emergency Services as part of the strategic plan for growth. Work is ongoing in securing sustainable funding for projects in areas where funding has already been provided, to ensure the continuation of service delivery to stakeholders, and service users.

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THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE DMWS (LIMITED BY GUARANTEE)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

Grants and Fundraising: DMWS has continued to make significant progress with their grants programme which has generated pivotal funding for both specific project funding and important core funding grants. This has maintained vital welfare support for those who serve and their family members and carers as well as driven expansion both in terms of geographical reach and development of further expertise.

DMWS does not engage in public fundraising and does not use professional fundraisers or commercial participators. DMWS nevertheless observes and complies with the relevant fundraising regulations codes. During the year, there was no non-compliance of these regulations and codes and DMWS received no complaints relating to its fundraising practice.

We are extremely grateful for funding received from the following organisations:

Armed Forces Covenant Fund Trust Arborfield Old Boys Association ABF The Soldiers’ Charity Age Scotland Alan Boswell Group Charitable Trust Army Central Fund Baron Davenport’s Charity Boots Charitable Trust EF Bulmer Trust Camden and Islington NHS Foundation Trust G J W Turner Trust Great Western Hospitals NHS Foundation Trust Herefordshire Community Foundation Hugh Fraser Foundation Imperial College Healthcare NHS Trust Merchant Navy Welfare Board Ministry of Defence NHS Devon NHS Dorset NHS England NHS Greater Glasgow and Clyde NHS Lanarkshire NHS Lothian NHS Fife Northampton General Hospital NHS Trust Police Federation of England and Wales Queen Mary’s Roehampton Trust RAF Benevolent Fund Royal Navy and Royal Marines Charity Robertson Trust Royal United Hospitals Bath NHS Foundation Trust Salisbury NHS Foundation Trust Scottish Veterans Fund Somerset NHS Foundation Trust The Dulverton Trust

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THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE DMWS (LIMITED BY GUARANTEE)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

The Eveson Trust

The Gosling Foundation The Michael Marsh Charitable Trust

The National Lottery Community Fund The Orders of St John Care Trust The Royal British Legion The Valentine Charitable Trust The Veterans Hub Weymouth Veterans’ Health Innovation Fund

Veterans’ Foundation

Public Benefit

The trustees confirm that DMWS is compliant with the rules for public benefit. The ultimate beneficiaries are the members of Armed Forces Community, Veterans, the Police, their dependants, and others engaged by or acting in support of the Armed Forces. Armed Forces Covenant Funding, several project grants and broadened funding have allowed DMWS to diversify into other arenas such as the Police and NHS workers, developing a training capability and partnership working with charities, the NHS and local authorities and has extended the support it provides to its beneficiaries in line with the organisation’s intent to serve a broader population.

In the financial year we have supported 4,241 service users and an additional 5,783 family members and staff, giving a total of 10,024 beneficiaries. This is further growth in people helped by the organisation (+6%) as we have taken on more contracted projects and expanded into new geographical locations.

ACHIEVEMENTS AND PERFORMANCE

DMWS continues to provide outstanding service delivery to all our stakeholders and service users, and recognition for employees has been outstanding throughout 2022/23, with the following nominations and awards received:

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THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE DMWS (LIMITED BY GUARANTEE)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

DMWS Welfare Officer Matt Long receiving the ‘Outstanding Partner’ award as part of the Salisbury NHS Foundation Trust (Salisbury District Hospital) annual staff award.

FINANCIAL REVIEW

Financial report for the year

Total income resources for the year ended 31 March 2023 amounted to £2,811,546 (2021/22 £2,182,998), an increase on last year and an excellent achievement in today’s financial climate. This is due to an increase in donations, grants and welfare services. The cost of DMWS’s on-going activities during the period amounted to £2,755,437 (2021/22 £2,099,362) giving a surplus of £56,109 (2021/22 £83,636).

The deferred income for 2022/23 is £555,259 (2021/22 £498,329). The balance sheet shows an increase in total funds to £415,046 (2021/22 £358,937).

RESERVES POLICY

The trustees approved a policy on financial reserves in February 2018 and agreed that at the beginning of each financial year a full review of the company’s commitments and costs should form the basis of the financial reserves policy. The trustees have examined the requirement for free reserves; unrestricted funds which are not represented by tangible fixed assets, and which are not designated for specific purposes or otherwise committed. Direct project costs are independent of core costs and are covered by their respective restricted funds. The trustees have re-affirmed that, having regard to the nature of the activities of DMWS, the level of free reserves cover three months’ ordinary recurrent expenditure (approximately £275,000). On 31 March 2023, the free reserves amounted to £355,223 (2021/22 £283,097). This is an increase on the previous year’s reserves and is in accordance with the policy.

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THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE DMWS {UMITED BY GUARANTEE) TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2023 It4VESTMENT POUCY The Irustees re4ffYrneJJ ther pclitry on the management of investments n Feb￿￿ry 2023. The trustees have delemiined thal Ihe management of the dIan￿5 irWeslr￿ts shwbd be undertaken through the Common Investment FuThls for Charities (COIF}. This thash)n w￿1 be reguLqrfy ravw￿l by the trustegs, a$ part of the Audit and Financo Commiitso. Durirvj the yg¥. the charity did not hdd any inVestM￿ts. PLANS FOR FUTURE PERIODS The succgssful imFAementaknn of the slrategic plan to w)crease YKome sourtes to dr¥erslfy ￿ cohorts supported by our service has wovhjed Sts￿lrty through cha118nging times. In the past DMWS was primarlly dependent upon delivery ofthe hospital welfare s￿1¢8 whlth has been tffoadengj lo indudg MIYO SUPPOrt within the community and In the support of sgctor workers such as the KKlice service. Tho Board is contlnuin9 to diversify the organi5ation's xbvitss to achieve a roLwt IMiness model that conlinue5 to be sustalnable. It has agreed the following plans for the coming year. Continue lo add additional capabilities arouThJ clinical SUFVp)rt to those that Wofk on fronuine services. Secure ktscommissioning oftyJr sernce 7hryihin tho NHS. Inuease grant fijndw to further DMWS ts becom fiftartI￿ty irmlepethit with a vwiety of Ime streams. In the y8ar2023124, tho In*tges eXP￿tIh8 charity to ￿TalewIthIn Ihg budptagr8od atthe February 2023 boord meetiTr3. STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDrroRS So far as tha Tntstees are aware. there is no relevant autht irrfo￿￿ (as dèffined by Sectlon 418 of the Companies Acl 20061 of ￿Lch the company's audrtors are unaware. and each T￿￿199 has takan all th8 steps Ihal they ought lo h8ve taken as a Trustee in ¢Kder to make themsefv8s aware of any relgvanl audit information and to eSta￿lsh that the company's auditws arg aware of Ihal information. Approved by the 8oard of Trustee8 Maryanne Burton Date: 25 thjly 2023 12

THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE (LIMITED BY GUARANTEE)

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees, who are also the directors of The St. John and Red Cross Defence Medical Welfare Service for the purpose of company law, are responsible for preparing the Trustees’ Report and the Financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Principles), including Financial Reporting Standard 102 ‘The Financial Reporting Standard in the UK and Republic of Ireland’.

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the Trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

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THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE (LIMITED BY GUARANTEE)

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES AND MEMBERS OF THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE

Opinion

We have audited the financial statements of St John and Red Cross Defence Medical Welfare Service (the ‘charitable company’) for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE (LIMITED BY GUARANTEE)

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES AND MEMBERS OF THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE (LIMITED BY GUARANTEE)

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES AND MEMBERS OF THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE (LIMITED BY GUARANTEE)

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES AND MEMBERS OF THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charity’s trustees as a body, in accordance with Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Shachi Blakemore (Senior Statutory Auditor) For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

Date: 02 August 2023

Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

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THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE (LIMITED BY GUARANTEE)

STATEMENT OF FINANCIAL ACTIVITIES (including income and expenditure) FOR YEAR ENDED 31 MARCH 2023

Notes
Income from:
Donations, grants and legacies
3
Interest receivable
Furlough scheme grant income
Charitable activities:
4
Welfare services
Education and training
Total income
Expenditure:
Charitable activities:
Welfare services
Education and training
Total expenditure
5
Net income/(expenditure)
Fund balances brought forward at
1 April
Fund balances carried forward at
31 March
18		 Unrestricted
funds
£
Restricted
funds
£
2023
Total funds
£
2022
Total funds
£
50,383
1,412,818
1,463,201
1,395,459
6,049
-
6,049
148
-
-
-
17,343
942,396
399,900
1,342,296
766,532
-
-
-
3,516
998,828
1,812,718
2,811,546
2,182,998
926,702
1,828,735
2,755,437
2,039,358
-
-
-
60,004
926,702
1,828,735
2,755,437
2,099,362
72,126
(16,017)
56,109
83,636
283,097
75,840
358,937
275,301
355,223
59,823
415,046
358,937

Statement of Financial Activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

All activities are classified as continuing. There are no recognised gains or losses other than those reported on the Statement of Financial Activities.

The notes on pages 21 to 33 form part of these financial statements.

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THE ST JOHN AND RED CROSS DEFENCE PAEDICAL WELFARE SERVICÉ (LIMrfED BY GUARAKfEE) BALANCE SHEET ASA T31 IAARCH 2023 2023 2022 Flxed assets Intsngiblg asséts Tangible assots 12 13 Debtors s￿rt lerni dep￿ts. cash at bank arKI in hand 14 27Q678 162,118 91S.468 1,111086 1,077,586 Credltorn: anw)unts fallirvJ due wlthin one year Net current assets 15 1697.040 (718.649) 415.046 415.046 358,937 358,937 Totsl nei assets Fund8 and rI￿rY•S Income fund$ ReslrKted lunds Unrestricted funds Total funds 17 59,823 355.223 415,046 75.840 283.097 358.937 The notes pages 21 to 33 fcvm part of these fffiwal sta18r￿ts. The financAal statements wwe approved by the Board 25th Juty 2023 ty. Maryanne Burton. Tntst88 Company Registration 04185635 19

THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE (LIMITED BY GUARANTEE)

CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 MARCH 2023

Net cash provided by operating
activities
Net income
(Decrease)/increase in creditors
(Increase) in debtors
Depreciation of fixed assets
Investment income
Net cash from operating activities

Cash flows from investing activities
Investment income
Cash provided by investing activities
(Decrease)/increase in cash
Cash and cash equivalents at the
beginning of the year
Cash and cash equivalents at the end of
the year
Reconciliation of cash flows and net
debt
Cash at bank and in hand		 2023
£
£
56,109
(21,609)
(114,560)
-
(6,049)
(86,109)
6,049
6,049
(80,060)
915,468

835,408
At 1 April
2022
£
Cash flows
£
915,468
(80,060)		 2023
£
£
56,109
(21,609)
(114,560)
-
(6,049)
(86,109)
6,049
6,049
(80,060)
915,468

835,408
At 1 April
2022
£
Cash flows
£
915,468
(80,060)		 £
83,636
94,098
(63,867)
3927
(148)		 2022
£
117,646
148

148


At 1 April
2022
£
915,468		 Non-cash
changes
£
-
(80,060)
915,468		 117,794
797,674
835,408 915,468
Cash flows
£
(80,060)		 At 31 March
2023
£
835,408

No separate reconciliation of net debt has been prepared as there is no difference between the net cash (debt) of the Charity and the cash and cash equivalents.

20

THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

The charitable company is a company limited by guarantee, with no share capital, registered in England and Wales as a company and as a charity with the Charity Commission and the Office of the Scottish Charity Regulator.

2 Accounting Policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

2.1 Basis of accounting

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) – (Charities SORP (FRS102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended).

After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. There are no material uncertainties about The St John and Red Cross Defence Medical Welfare Service’s ability to continue as a going concern.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The St John and Red Cross Defence Medical Welfare Service meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

2.2 Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income is deferred only when the charity must fulfil conditions before becoming entitled to it or where the donor or funder has specified that the income is to be expended in a future accounting period.

2.3 Expenditure and apportionment of costs

Expenditure is included in the Statement of Financial Activities when incurred and includes attributable VAT which cannot be recovered.

Expenditure comprises entirely the costs of undertaking charitable activities as follows:

21

THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

2.4 Foreign currency

Transactions in foreign currencies are recorded using the rate of exchange ruling at the date of transaction. All foreign currency balances have been translated at the balance sheet date. Gains and losses on translation are included in the Statement of Financial Activities.

2.5 Fixed assets

It is the policy of the charity to capitalise items exceeding £5,000 in cost. Expenditure below this level is taken to the Statement of Financial Activities as incurred.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Computer equipment 3 years straight line basis

Intangible fixed assets are stated at cost less amortisation. Amortisation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Software development 3 years straight line basis

2.6 Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.7 Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a maturity of three months or less from the date of acquisition or opening of the deposit or similar accounts.

2.8 Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

2.9 Fund accounting

The restricted funds are monies raised for, and their use restricted to, a specific purpose, or donations subject to conditions imposed by the donors.

The general fund represents those monies which are freely available for application towards achieving any charitable purpose that falls within the charity’s charitable objects.

2.10 Pension contributions

DMWS contributes to employees’ personal pension plans up to 6% of salary on a matching basis. The pension costs included in the Statement of Financial Activities represent the amount of contributions payable in respect of the accounting period.

2.11 Leased assets

Rentals applicable to operating leases where substantially all the benefits and risks of ownership remain with the lessor are charged on a straight-line basis over the lease term.

22

THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

2.12 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

2.13 Critical accounting estimates and judgements

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the charity’s accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances. Although these estimates are based on management’s best knowledge of the amount, events or actions, actual result ultimately differ from those estimates.

The items in the financial statements where judgements and estimates have been made include:

23

THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

3. Donations and legacies

National Framework
Office for Veterans Affairs
SAAS
Serving
Veterans NHS
VPPP
Other Grants & Funding
Scotland		 Un-
restricted
£
Restricted
£
Total funds
2023
£
Un-
restricted
£
Restricted
£
Total funds
2022
£
-
374,443
374,443
13,000
319,907
332,907
-
22,796
22,796
-
-
-
-
- -
-
59,850
59,850
-
-
-
-
68,832
68,832
-
68,213
68,213
61,000
105,007
166,007
-
215,653
215,653
-
25,135
25,135
50,383
360,682
411,065
31,348
627,598
658,946
-
371,031
371,031
-
83,782
83,782
50,383
1,412,818
1,463,201
105,348
1,290,111
1,395,459

4. Income from charitable activities

Welfare services
Police
SAAS
Serving
Veterans NHS
VPPP
Other Grants & Funding
Education and Training
Training Projects
Welfare Diploma
Mental Health First Aid
Training		 Un-
restricted
£
Restricted
£
Total funds
2023
£
Un-
restricted
£
Restricted
£
Total funds
2022
£
227,733
-
227,733
231,886
3,500
235,386
74,087
-
74,087
2,300
-
2,300
505,576
-
505,576
486,711
-
486,711
133,000
-
133,000
-
-
-
-
399,900
399,900
-
38,402
38,402
2,000
-
2,000
-
3,733
3,733
942,396
399,900
1,342,296
720,897
45,635
766,532
-
-
-
6
-
6
-
-
-
(2,250)
-
(2,250)
-
-
-
5,760
-
5,760
-
-
-
3,516
-
3,516
942,396
399,900
1,342,296
724,413
45,635
770,048

A description of the restricted fund providers can be found at the foot of Note 17 – Restricted funds.

24

THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

5. Total expenditure

Welfare services
Activities undertaken directly
Support costs (note 6)
Education and Training
Activities undertaken directly
Support costs (note 6)		 Staff
costs
£
Other costs
£
Total 2023
£
Staff costs
£
Other
costs
£
Total 2022
£

1,303,330
669,849
1,973,179
1,030,667
215,109
1,245,776
503,307
278,951
782,258
383,044
410,538
793,582
1,806,637
948,800
2,755,437
1,413,711
625,647
2,039,358

-
-
-
-
25,540
25,540
-
-
-
34,464
-
34,464
-
-
-
34,464
25,540
60,004
1,806,637
948,800
2,755,437
1,448,175
651,187
2,099,362

6. Analysis of governance and support costs

Staff costs
Office costs
Other administrative costs
Insurance
Travel & subsistence
Governance costs (note 7)		 Welfare
services
£
Education
& training
£
Total 2023
£
Welfare
services
£
Education
& training
£
Total 2022
£
503,307
-
503,307
383,044
34,464
417,508
42,045
-
42,045
38,050
-
38,050
144,425
-
144,425
299,850
-
299,850
14,034
-
14,034
14,997
-
14,997
9,119
-
9,119
386
-
386
69,328
-
69,328
57,255
-
57,255
782,258
-
782,258
793,582
34,464
828,046

Support costs are allocated to charitable activities based on direct expenditure incurred by each activity.

7. Governance costs

Audit fees – current year
Audit fees – prior year under-provision
Legal and professional fees
Trustees’ reimbursed expenses		 Total 2023
£
Total 2022
£
12,720
10,500
2,400
-
53,351
45,559
857
1,197
69,328
57,256

25

THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

8. Comparative funds – Statement of Financial Activities for the year ended 31 March 2022

Notes
Income:
Donations, grants, and legacies
3
Interest receivable
Furlough scheme grant income
Income from charitable activities
4
. Welfare services
. Education and training
Total income
Expenditure:
Charitable activities:
. Welfare services
. Education and training
Total expenditure
5
Net income/(expenditure)
Fund balances brought forward at 1 April 2021
Fund balances carried forward at 31 March 2022
18
9.
Net income/(expenditure)
This is stated after charging:
Auditor’s remuneration - Statutory audit fees
Operating lease payments		 Unrestricted
funds
£
Restricted
funds
£
2022
Total funds
£
105,348
1,290,111
1,395,459
148
-
148
17,343
-
17,343
720,897
45,635
766,532
3,516
-
3,516
847,252
1,335,746
2,182,998
700,042
1,339,316
2,039,358
60,004
-
60,004
760,046
1,339,316
2,099,362
87,206
(3,570)
83,636
195,891
79,410
275,301
283,097
75,840
358,937
2023
£
2022
£
15,120
10,800
38,314
33,000

26

THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

10. Staff costs

10.Staff costs
Wages and salaries
Redundancy
Social security costs
Pension contributions		 2023
£
2022
£
1,522,217
1,261,158
2,107
-
143,725
117,475
138,588
69,542
1,806,637
1,448,175

Pension contributions solely relate to a defined contribution scheme. £15,227 of pension contributions were outstanding at the year-end (2021/22: £10,918).

The number of employees who earned over £60,000 per annum (including taxable benefits but excluding employer pension contributions and employers’ national insurance) or more during the year was as follows:

2023 2022
No. No.
£80,001 - £90,000 1 1

Pension costs for the year relating to these employees totalled £10,404 (2021/22: £5,118).

The average number of employees during the year, analysed by function, was as follows:

Charitable activities
-
Welfare services
-
Support		 2023
No.
2022
No.
51
39
8
8
59
47

During the year, none of the trustees received any remuneration in respect of their services as trustees (2021/22: none). Out of pocket travel and subsistence expenses amounting to £857 (2021/22: £1,197) were reimbursed to 3 trustees during the year ended 31 March 2023 (2021/22: 4).

The key management personnel of the charity comprise the trustees, the Chief Executive Officer and Senior Leadership Team. The total employee benefits of the key management personnel of the charity were £187,259 (2021/22: £175,884).

11. Taxation

The Company is a Registered Charity (number: 1087210). All activities are undertaken to fulfil the primary objectives of the charity and are therefore exempt under Part 11 of the Corporation Tax Act 2010.

27

THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

12. Intangible fixed assets

Cost
At 1 April 2022
Additions
Disposals
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
Disposals
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022
13.Tangible fixed assets
Cost
At 1 April 2022
Additions
Disposals
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
Disposals
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Computer
software
£
53,337
-
-
53,337
53,337
-
-
53,337
-
-
Computer
equipment
£
49,114
-
-
49,114
49,114
-
-
49,114
-
-

28

THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

14. Debtors

Amount due from the Ministry of Defence
Other debtors
Prepayments and accrued income
15.Creditors: amounts falling due within one year
Trade creditors
Other creditors
Taxation and social security costs
Accruals
Deferred income
Deferred income:
At 1 April
Released in year
Deferred in year
At 31 March		 2023
£
2022
£
59,078
60,718
96,960
65,495
120,640
35,905
276,678
162,118
2023
£
2022
£
22,358
120,767
5,007
-
54,354
44,633
60,062
54,920
555,259
498,329
697,040
718,649
2023
£
2022
£
498,329
538,054
(1,616,136)
(907,879)
1,673,066
868,154
555,259
498,329

16. Leasing commitments

At 31 March, DMWS had total commitments under operating leases payable as follows:

Within one year
Within two to five years		 Land and buildings
Other
2023
£
2022
£
2023
£
2022
£
38,314
36,000
2,199
4,505
109,500144,000
5,054
6,067
147,814
180,000
7,253
10,572

29

THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

17. Restricted funds

17.Restricted funds
National Framework
Office for Veterans Affairs
Serving
Veterans NHS
VPPP
Other Grants & Funding
Scotland		 At 1 April
2022
£
Income
£
Expenditure
£
At 31 March
2023
£
38,072
374,443
(377,616)
34,899
-
22,796
(19,879)
2,917
2,832
-
(2,832)
-
400
68,213
(67,507)
1,106
338
615,553
(604,695)
11,196
24,784
360,682
(381,779)
3,687
9,414
371,031
(374,427)
6,018
75,840
1,812,718
(1,828,735)
59,823

Restricted Fund Providers include:

30

THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

Current Projects & Key Partners:

31

THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

18. Analysis of net assets between funds

Fund balances at 31 March 2023 are represented by:
Current assets
Creditors: Amounts falling due within one year
Total 2023
Fund balances at 31 March 2022 are represented by:
Current assets
Creditors: Amounts falling due within one year
Total 2022		 Unrestricted
funds
£
Restricted
funds
£
Total
£
1,052,263
59,823
1,112,086
(697,040)
-
(697,040)
355,223
59,823
415,046
Unrestricted
funds
£
Restricted
funds
£
Total
£
1,001,746
75,840
1,077,586
(718,649)
-
(718,649)
283,097
75,840
358,937

32

THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

19. Connected charities

DMWS was established by the trustees of the Joint Committee of the Order of the Hospital of St. John of Jerusalem and the British Red Cross Society (the “Joint Committee”) to take over its Service Hospitals Welfare Department. The Joint Committee is a charity, registered on the Central Register of Charities under number 225753.

The membership rights in DMWS were originally held by the Chairman and Vice-Chairman of the Joint Committee, and the Joint Committee had the power of appointing Trustees. The Joint Committee transferred the assets and the undertaking of its Service Hospitals Welfare Department to DMWS at the close of business on 31 March 2001. In view of the decision of the trustees to wind up the Joint Committee, the trustees considered the implications of this for the constitution of DMWS. Accordingly, on 5 December 2005 an amended Memorandum and new Articles of Association were passed by Special Resolution of the trustees. The revised Memorandum and Articles of Association came into effect on 1 January 2006 and these, together with an associated Tripartite Memorandum of Agreement, resulted in transfer of the membership rights in DMWS to the Prior of the Priory of England and the Islands of the Order of the Hospital of St John of Jerusalem (the Prior) and the Chairman of the British Red Cross Society (the Chairman). From that same date the appointment of Trustees of DMWS became a matter for the Board, which is informed by the recommendations of its Nominations Committee.

Further revisions were made to the Memorandum and Articles of Association, with effect from 25 November 2014, whereby the Prior and the Chairman were designated Founder Members. The new Articles stipulate that the objects of DMWS cannot be amended except with the prior written consent of the Founder Members. The new Articles further stipulate that on dissolution of DMWS, its assets shall be distributed equally between the Priory of England and the Islands of the Order of the Hospital of St John of Jerusalem and the British Red Cross Society. This provision likewise cannot be amended except with written consent of the Founder Members. The Articles have been further amended in July 2018, amendments were made to Article 5.4, regarding the term served by trustees, deletion of Article 5.5 regarding retirement of trustees as it conflicts with the amendment to 5.4 and amending Article 6.5 regarding the selection of the Chair and Deputy Chair.

20. Related party transactions

During the year the charity received an unrestricted donation from the Queen Mary’s Roehampton Trust totalling £25,000 (2021/22 £25,000) of which James Macnamara is a trustee and an unrestricted donation of £3,110 (2021/22 £nil) from The Orders of St John Care Trust of which James Macnamara is also a trustee.

Other trustee related expenses are disclosed within Note 10 – Staff Costs.

33