Defence Medical Welfare Service Annual Report and Financial Statement For Year Ended 31 March 2025 The St. John and Red Cross Defence Medical Welfare Service (LIMITED BY GUARANTEE) Annual Report and Financial Statements For the Year Ended 31 March 2025 Company Limited by Guarantee Reglstratlon Numbpr. 0418S635 (England and Wale$l Charlty Comm15slon Rggistration N￿bIr. 1087210 OSCR Reglstration Number. SCI)45460 THE ST JOHN AND RED CROSS DEFENCE MEDICALWELFARE SERVICE (LIMITED BY GUARANTEE) LEGALAND ADMINISTRATION Patron HRH The Duchess of Edinburgh Trustees Brigadier {Rtd) M T Griffiths CBE QPM (Chairman) - appointed Chairman July 2023 Mr A Buckham Mr P Taylor Mr J Macnamara Mrs J Lynch Colonel C Waterworth MBE rasigned May 2024 Gp.Capt (Rtd) Teresa Griffilhs CBE ARRC - appoinlod DeG 2023 Chief Executive Officer Paul Gaffney - Tesigned Mar¢h 2024 Abby Dryden - appolnled Aprll 2024 Senlor Leadership Team Dermot Stephens - Head of Finance- resigned July 2024 Karen Noble - Financial Controller- appointed Juty 2024 Robert Reid - Director of Services Scotland & Overseas Jessica Liston - Director of Services England & Wales Paul Weaver- Director of Business Infrastructure Siobonne Brewster- Director of Development Principal and Registered Office The Old Slables 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 Charlton Baker {8ristol) Ltd Eden Business Park 61 Macrae Road Ham Green Bristol BS20 ODD Main bankers National Westminster Bank plc 48 Blue B¢Ydr Row Salisbury Wiltshire SP1 1DF THE STJOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE {LIMITED BYGUARANTEE) CONTENTS Page Chair Welcome A note from our Chief Executive Trustees, Report 7-17 Statement of Trustees, Responsibilities 18 Report of the IndependentAuditors 19-22 statement of Financlal Activities 23 Balance Sheet 24 Cash-flow Statement 25 Notes to the Financial Statements 26-38 ..* 4,¢¥pi 11, TRUS.TEES: REPORT Chair Welcom8 2024 has been a year of tremendous challenge and change. of continued growth within our traditional sectors and now within several new environments. The team led by the CEO and the Directors have reacted and adapted magnificently to these pressures and have delivered a first-class service to our core audience across the country. As Chair of the DMWS Board, l am in the privileged position of being able to congratulate all our Team, wherever they Work. on an outstanding year. We conlinue to stay true to our strategic aims and core purpose.. delivering medical welfare support to those who are serving, or have served, on the frontline as well as to their families and carers. The fig ures within this report show the true scale of that dedicaled work. Over the past year, I have been truly inspired and humbled by what our teams have achieved and by the strength and resilience of those we support. The context in which we operate continues to evolve and Can often be extremely challenging, yet the Commitment and compassion of our staff remain unwavering. Their professionalism, resilience, and dedication are the backbone of everything DMWS delivers. The following pages offer just a glimpse of what has been accomplished this year, and I hope you find them as inspiring as I do. We are proud of the difference we make and remain steadfast in our mission to provide dedicated, person- centred support to the frontline now and into the future. Mike Grlffiths CBE QPM Chair of trustees .THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE . (LIMITED BY GUARANTEE) . TRUSTEES, REPORT. FOR THE YEAR ENDED 31 MARCH 2025. A note from our Chief Executlve Abby Dryden Defence Medical Welfare Service has now operated for more than eight decades and in that time, we have seen significant changes in the requirements of those professional groups we support and care for. We have also witnessed changes in society, in families, and in the roles of those we work alongside through both peace and conflict. As we look toward an increasingly complex and uncertain global future, it's important to reflect on where we have come from and what we have achieved. In the last year we have continued to have exceptional success with both the quality of service we provide and the diversity of presenting 5UPPOrt needs thatwe are able to address. These achievements are only made possible by our staff, our supporters, our funders and our partners. We are proud to have earned the confidence and trust of those who invest in us and enable us to maintain and develop the excellent work that we do, importantly we remain dedicated to undertaking all that we do in the spiril which supports our charilable objectives. DMWS delivers services which are dedicated lo those people and their families and carers who form the frontline and who are engaged in complex, demanding and high-risk occupations. DMWS are inspired by and proud to support those who make a commitment lo a life of service. it drives us in all that we do. Our beneficiaries demonstrate exceptional dedication, talent and selfless commitment to concepts greater than their own personal gain. Frontline personnel supported by Iheir families and carers create secure, safe and healthy communities. where their dedication allows all of us to benefit and share in the freedom this brings. Those we support make a ch05ce to willingly risk their personal safety both physically and psycholegically. In return, DMWS remains dedicated and proud to deliver the exceptional support Ihat our beneficiaries deserve whenever and wherever this is required. Importantly. our DMWS Team is composed of around 60 percent of ex service personnel, police officers, nurses and allied healthcare professionals. Through this, and our ongoing engagement and data reviews, our service can deliver a compassionate and insightful service that is informed by a unique lived experience of those who have served. As we are proud of our beneficiaries, so are we proud of our teams and the culture that we have created together, where Ihe success of Ihe team and our ability to deliver exceptional support services even in the most difficult of circumstances is not down to one individual but is clearly the effort of a whole team committed to a common objective. As the Chief Executive, l am continually impressed by the dedication that I see from everyone who is part of our organisalion, and I know that whatever challenges fomi part of our future, we will achieve much success together. Abby Dryden Chief Executive. DMWS THE STJOHN AND RED: CROSS DEFENCE MEDICALWELFARE SERVICE. ..TRUSTEES' REPORT Trustees, R9POrt The trustees (who are also the direct015 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, Ihe 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). ..ILIMITED BY:.GUARANTEEJ TRUS.TEES' REPO.RT.. _. FOR THE.YEAR END.ED 31 MARCH 2025. Background and Constitution DMWS has a proud and long history supporting those on the frontline. DMWS was formed from The Service Hospitals Welfare Department {SHWD) in 2001 and it has been providing a Hospital Welfare Service under contract lo the Ministry of Defence IMOD) since this date. 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 peTsonnel to assist the medical officers in military hospitals worldwide, including on deployment in field units. At the outset of World War 11, Ihey 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 deployments into Aden, Palestine, Egypt, Malaya, Iraq and Afghanistan to name but a few. With over 8 decades of providing professional welfare support for frontline services, we give thanks to our fantastic supporteis and partners who play a tremendous part in making this possible. We are dedicated lo continuing our mission to help service personnel. veterans, reservists, police and NHS colleagues on the frontline and their family and carers during their most critical lime of need. We have evolved with the emerging environment to respond to an expanding range of beneficiaries and their issues and needs, some of which are becoming increasingly complex. We are a professional, dedicated service and are immensely proud of our achievernenls and our teams who are our greatest assets. 1940 1960 1980 2000 2020 WdlartOllk(f$5pJllPOrt Ihotc •t[cLlcdbyilir￿1l￿1. emwwysth¢EJ.￿m￿ftiI. Ibtk la Iw.YOkrJl5 I 75thAnthtn•ryONWIS io bi¥0 1 5 ￿r0￿r¢I0&4f￿¥ Tr*F¥W¥ndSWdt¥¢Ol*ets I CrA4d.1gP¥dwkOMW$ MJrythill¢nlsjnd￿ISk* Itariin C&ro WoNarcOfnLri>* dMT055EwoyciGfxJt41 StcthidGLItW•iWcVw 011k¢tsa￿ bJ&￿￿15￿1￿ i MOD FkstGuWWait>L*b Ihdts DMWSl4KWLiie aLoialof IIHpI Iijir F￿r￿< DMWS lthloiixc IIyTr N)I5wd$knF￿Yt tts rwt*•ni¢d FDrrU•r￿5s VAltndsl0D¥ei46I￿WL sialToThed mr1￿119 THE STJOHN AND RED CROSS DEFENCE MEDICALWELFARE SERVIC_E TRUST.EÈs: REPORT . STRUCTURE AND GOVERNANCE DMWS is directed by the Board, which is comprised of Trustees, the Chief Executive Officer {"CEO') and the organisation's 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. Training encompasses a range of ststulory and best practice requirements, including lopics such as safeguarding, IT security, data protection, and inclusivity awareness. These training courses are mandatory and are repeated on a regular basis. All DMWS undertake the accredited Foundation Course for Welfare Professionals as part of their role, with clinical staff undertaking regular and repeat professional accreditation. 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 awaTd of Cyber Essentials Plus certification, the leading national standard for cyber security. The trustees, who meet as a Board at least every Ihree months, set the strategy and policy for the service. The strategy is reviewed regularly and a Strategic Plan oul 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 trustees proposed by the Society. An annual skills audit is conducted by Mike Griffiths who identifies Ihe 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 rnay serve for terms of three, six or nine years. Trustees, Remuneration and Expenses None of the trustees ha5 received any remuneration or similar benefits from DMWS. The charity purchased professional indemnity insurance on behalf of the trustees in the year. The premium on this insurance was £3,780 (2023124 £4,200). Trustees, Inductlon 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. The Trustees deploy a wide range of skills and experience essential to good governan￿. A register of Trustees, skills is held centrally and reviewed on an annual basis. This year, trustees have held two 'away days, to do deep dive sessions on key aspects relating to the future development of the organisation. ,THE STJOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE-. ._.. ,.TRUSTEES' REPORT 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 lo the staff, and are made readily available to all staff members. The￿ 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 Foundation Course for Welfare Professionals, a course developed by DMWS to ensure the professionalism of Welfare is standardised. All probationary staff are monitored and reviewed closely throughout probation by their line managers. All Welfare Officers have access to personal clinical supeNision 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. Defefiee Medieal Wellaro S¢rvlc• Supporuryg Iliofronll WORKI ",IH v IR-.LAk FI¥iiTe A-Al¢mbepsoJDA4WSNorihernlr¢londTeém th aRth7dslbM Evw Figurc B-DMIVS IV¢lfvr¥ Offi¢eT DMWS strives to have a culture of incSusivity, mutual respect and of valuing individuals and their differences. We recognise and value the benefits of employing individuals from varied backgrounds and are committed to cultivating a creative and inclusive workplace. DMWS as an employer and service provider lakes all reasonable measures to ensure its practices are free from discrimination. are inclusive, and accessible to all. DMVVS upholds the Tights of service users, employees. workers and volunteers to be treated fairly and withoul discrimination on any grounds. 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 Tearn, which are also reviewed annually by the Remuneration Commiltee and are set in line with salaries of similar roles within the charity sector. The total remuneration (including pension contributions an employerfs National Insurance contributions) paid in respect of key management personnel for the year was (6 FTE) £413,477 (2023124 {3 FTE) £212,531). THE ST JOHN AfvID RED.CROSS DEFENCE MEDICAL WELFARE SERIIICE. >..TRUSTEES.' REPORT.. OBJEcfivES AND ACTIVITIES Principal Objects The principal objects of DMWS are: The provision of hospital welfare services for members of HM Forces, Iheir dependants, and others engaged by or acting in support of the Armed Forces. Support veterans and their families when they need support within a medical context. Supporting serving personnel and reservists, veterans, the Merchant Navy. and frontline groups such as the police and the NHS staff including their dependent relatives. The carrying on of such olher activities as are exclusively charitable and as the Trustees shall think lit including work within defence rehabilitation and recovery. DMWS retains the humanitarian ethos of our forebears in St John and Red Cross and IOOVO 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 nalional provider of choice for welfare support in the clinical care pathway. DMWS'S highly trained Welfare Officers spend the time that most healthcare professionals don't have building positive relationship rooted in trust with the beneficiary. Our qualified teams take time to listen, identify, sUPPOrt, and address the social, environmental, and economic issues, known as wider delerminants of health, which cause poor mental and physical health. delays to being discharge, an increased likelihcod of readmission, and impede recovery. We iackle the clinical and non-clinical determinants of health to ensure both short- and long- term sustainable solutions. This includes but is not limited to.. General health and wellbeing Mental health issues Stress and anxiety Housing issues and homelessness Substance misuse and addiction Social isolalion and loneliness Cost of Living and financial worries Farnily and relationship issues Unemployment Thoughts of taking one's life Bereavement We are here to help people during their most critical time of need. We are pa55ionately committed, in heart and mind, to the people we support and deliver our service to. Fig11￿ C- Iyclfttre Olfi¢n. Our conduslons aro basod on the audit ￿dence obtalnéd up to the dat8 of ¢)ur audltof8 report. Howav8r, fiJlur8 events ty condltlon6 may C8U6e Ihe thadty lo ceas8 to conttnu8 as a golng ¢on¢em. Evatuats thg oyerall prè5onlation. stsuciura and content ol the financlol statements. Includlng the dlsc108ures, and whelher the flnanclal statements reproGent the undertylng transactlons and ev8nts In 8 manner Ihal achleves fak we8enlalton. We comrnunlcAle ￿rfth those charged with govemanco regardlng, among other rnaN8rs, the ￿anned s(we and Ilmlng of the autht and slgnifKanl audil findlrys. Indudng any *nlllcant defflcienclos In kniemal ¢ontr¢l that we Idenlify dudng our audit. U*• of our r•port TN8 report Is made sdgty to Ihe charltabl8 COMP￿*8 membors, 08 a body. In accordanc8 wlth Chaptèr 3 ot Patl 16 oftho CompanlesAcl 2006. and to tho chaTllabl8 comp8ny's tr￿st9•S. as a body. In accordanr* vAth Regulalion 10 of thg Charit195 A¢tsJunts (ScoU8nd) Rwlations 2006. Our auditwork ha8 been undort8kgn 80 that we rn￿h1 state to the ¢harfl8ble g)mpw's members and Iruths those matters we are requlred to slate io thern In an audltorfs report and for no other pyvposo. To the fumest 8xl8nt p8rniltted by law. w8 do not arx8pt or asBumo responslbiEity to anyone other than th8 ctharftable company. tho charllable companys memb8rs as a body and the ¢hadlablo ¢ompanls Irustees a8 a body, for our audll worK for Ihis report. w for the op5nlon$ wo have fomwd. IL. Nlcolas Mltheel FCA (S•nlor Slatukny Audltor) For end on behall of Chartton Baker (Brfstoll Lld Edgn Business Park 61 Ma¢raè Road Ham Grean Bristol 8S20 ODD 2025 THE ST JOHN AND RED CROSS DEFENCE MEDICALWELFARE SERVICE (LIMITED BYGUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES (including income and expenditure> FOR YEAR ENDED 31 MARCH 2025 Unrestricted funds (inc designated) Restricted funds 2025 Total funds 2024 Tot81 funds Notes Income from: Donations, grants and legacies Charitable activities". Welfare services Interest receivable 47.841 2,380,631 2,428,472 1,936, 030 1.145,211 38,556 562.367 1,707,578 38,556 1,424,555 27,422 3,388,017 Total Income 1,231,608 2,942,998 4,174,606 Ex enditure: Charitablo actlvities: Welfare services 878,887 878,887 2,905,834 2,905,834 3,784,721 3, 121,304 Total expenditure 3,784,721 3,121,304 Net Incomel(expenditure) 352.721 37,164 389,885 266, 713 Fund balances brought forward at 1 April 676,405 5,354 681,759 415,046 Fund balances carrled forward at 31 March 18 1,029.126 42,518 1,071,644 681,759 Unreslricted funds include designated funds of £300,000. Slatement of Financial Activitie5 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 26 to 38 form part of these financial statements. 23 THE ST JOHN AND RED CROSS DEFENCE MEDICALWELFARE SERVICE (LIMITED BYGUARANTEE) BALANCE SHEET ASAT31 MARCH2025 2025 2024 Notes Current assats Debtors 14 506.403 379, 764 Short term deposits, cash at bank and in hand 1,270.452 1,776,855 994,208 1.373,9T2 Creditors: amounts falling due within one year Net Current assets qs (705,211) (692,213) 1071644 681. 759 Total net assets 1.071,644 681, 759 Funds and resorves Incofne funds Restricted funds Designated funds U nrestricted funds Total funds 17 42,518 300,000 729.126 1,071,644 5, 354 676.405 681, 759 These accounts have been prepared in accordance with the special provisions applicable to small companies subject to the small companies regime. The notes on pages 26 to 38 form part of these financial statements. The financial statements were approved by the Board on 22nd July 2025 by.. Mike Griffiths- Trustee Company Registration No. 04185635 THE STJOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE (LIMITED BY GUARANTEE) CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2025 2025 2024 Net cash provided by operating activities Net income 389.885 12,998 266, 713 (4. 827) (103, 086) IncreasellDecrease) in creditors (Increase) in debtOlS Depreciation of fixed assets (126,639) Investment income (38.556) (27, 422) Net cash from operatlng activities 237,688 131,378 Cash flows from investing activities Investment income 38,556 27,422 Cash provided by investing activities 38,556 27,422 In¢reasel(decrease) in cash Cash and cash equivalents at the beginning of the year Cash and cash equSvalents at the end of the year 276,244 158, 800 994,208 835, 408 1,270,452 994,208 At 1 April 2024 Cash flows Non-cash At 31 March changes 2025 Reconclliation of cash flows and net debt Cash at bank and in hand 994,208 276,244 1.270,452 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. THE STJOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE (LIMITED BYGUARANTEE) NOTES TOTHE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Statutory Information The charitable company is a company limited by guarantee, wilh no share capital, registered in England and Wales as a company and as a charitywith the Charity Commission and ttEOfficeofthe Scottish Charity Regulator. Accounting Pollcies The principal accounting policies adopted, judgements and key sources Of estimation uncertainly in the preparation of the financial statements are as follows.. 2.1 Basis of accounting The financial statements have been prepared in accordance wrth Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their financial slatements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102>- (Charities SORP (FRS102}I, 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 las 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 uncertainlies 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 enlitled 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 Activits'es when incurred and includes atlributable VAT which cannot be recovered. Expenditure comprises entirely the costs of undertaking charitable activities as follows.. Direct costs of undertaking DMWS, charitable activities. b. An allocation of central support costs. Support costs include back-office costs, finance, personnel. payroll and governance costs which support the charity's activities. The allocation of support costs to charitable activities is based on direct expenditufe incurred by each activity. THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE (LIMITED BY GUARANTEE) NOTES TOTHE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.4 Foreign currency Transactions in foreign currencies are ￿Orded using the rate of exchange ruling at the date of transaction. All foreign currency balances have been translated al the balance sheet date. Gains and losses on translation are included in the Statement of Financial Activities. 2.5 FSxed assets It is the policy ofthe charity to capitalise items exc*ding £S.000 in cost. Expenditure below this level is taken to the Statement of Financial Activities as incurred. Tangible fixed assels are stated at cost less depreciation. Depreciation is provided at rates calGulated to wrile off the cost less eslimated residual value of each asset over its expected useful life. as follows.. Computerequipment 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: SO￿are 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 ofthree months or less from the date of acquisltion or opening of the deposit or similar accounts. 2.8 Credltors Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in Ihe 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 designated funds are monies ring-fenced trom the general unrestricted fund for. and their use designated for, a specific purpose as determined by the Trustees. The general unrestricted fund represents those monie5 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 upto6% of salaryon a matching basis. The pension costs included in the Slatement of Financial Activities represent the amount of contributions payable in respecl of the accounting period. THE ST JOHN AND RED CROSS DEFENCE MEDICALWELFARE SERVICE (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.11 Leased assets Rentals applicable to operating leases where substsntially all the benefits and risks of ownership Temain with the lessor are charged on a slraight-line basis over the lease term 2.12 Flnancial 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 Iransaction value and subsequently measured at their settlement value. 2.13 Crltlcal 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 judgement 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 wherejudgements and estimates have been made include: estimating the liability for multi-year project grant commitments. including how much income to defer or accrue and how much income to recognise from the project grant to cover overhead costs: estimating the useful economic lite of tangible fixed assets., and determining the most appropriate basis for allocating support costs. 28 THE STJOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE (LIMITED BYGUARANTEE} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Donatlons and legacies Un- restricted Restricted Total funds 2025 Un- restricted Restricted Total funds 2024 National Framework Office for Veterans Affairs Veterans NHS 480.709 453.837 218,351 133,120 535,781 558,833 2.380,631 480,709 453,837 218,351 133.120 583,622 558,833 2,428,472 447,459 301,778 183, T65 229,495 409,034 298,438 1,869,969 447,459 301, 778 183, 765 229, 495 475,095 298, 438 1,936,030 vppp Other Grants & Funding Scotland 47,841 66,061 47,841 66.061 Income from charitable activities Un- restricted Restrlcted Total funds 2025 Un- slricted Total funds 2024 Restricted Police SAAS Serving Veterans NHS Thrive IVPPP Other Granls & Funding 443,763 41,640 554.193 104,415 443,763 41,640 554,193 104,415 562,367 1,200 1,707,578 348, 78q 78.357 502.847 175,540 348, 781 78,357 502, 847 175,540 315,640 3.400 1,424,565 562,367 315,640 1,200 1,145,211 3,400 1108,925 562,367 315,640 THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE (LIMITED BYGUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Total expenditure Staff costs other costs Total 2024 Other costs Total 2025 Staff cosls Welfare services Activities undertaken directly 2.111,412 Support costs (note 6) 592,041 2,703,453 725,601 355.667 1,081,268 2,837,013 1,637,515 947.708 539,592 3,784.721 2,177, 107 583,600 2,221, 115 360,597 900, 189 944, 197 3. 121,304 Analysis of governance and support costs Welfare SeTh￿es Total 2025 Welfare seNices Total 2024 Staff costs Office costs Other administrative costs 592,041 42,959 210,276 26,450 22,867 53,115 947,708 592,041 42,959 210,276 26,450 22,867 53,115 947,708 539, 592 42,934 229,817 19,644 29,018 39, 184 9GO, t89 539, 592 42,934 229,817 19,644 29,018 39, 184 900, 189 Insurance Travel & subsistence Governance costs (note 7) Support costs are allocated to chafltabEe activities based on direct expenditure incurred by each activity. Governanco costs Total 2025 Total 2024 Audit fees - current year Audit fees- prior year under-provision Legal and profe55ional fees Trustees. expenses 12,000 (3,760) 44.212 663 13,000 24,526 1,658 39, 184 53,115 THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH2025 8. Comparative funds- Statement of Financial Activities for thè year ended 31 March 2024 Unrestricted funds Restricted funds 2024 Total funds Notes Income: Donations, grants, and legacies Charitable activities: 66.061 1,869.969 1,936,030 Welfare seNices 1,108,925 27,422 1,202,408 315,640 1,424,565 27,422 3,388,017 Interest receivable Total Income 2,18S,609 enditure: Charitable actlvitles: Welfare services 881,226 2,240,078 2,240,078 3,121,304 3,121,304 Total expendlture 881,226 Net Incornel(expenditure) 321,182 (54.469) 286,713 Fund balances brought forward at l April 2023 35S,223 59,823 415,046 Fund balances carried fonvard at 31 March 2024 18 676,405 5,354 681,759 Net in¢omellexpendlture) This is stated after charging: 2025 2024 Auditorfs remuneration - Statulory audit fees Operating lease payments 8,240 13,000 42,625 4Q,067 THE ST JOHN AND RED CROSS DEFENCE MEDICALWELFARE SERVICE {LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 10. staff costs 2025 2024 Wages and salaries Redundancy Social security costs Pension contributions 2.269,829 1,519 210,566 221,539 2,703,453 1,829,273 165,327 182,507 2,177,107 Pension contributions solely relate to a defined contribution scheme. £24,836 of pension contributions were outstanding at the year-end (2023124: £18.873). The numberofemployees who earned over £60,000 perannum (including taxable benefits but excluding employer pension conlributions and employers, national insurance) or more during the year was as follows- 2025 2024 No. £80,000 - £65,000 £80,001- £90,000 The average number ol employees during the year, analysed by function, was as follows.. 2025 No. 2024 No. Charitable activities Welfare services 71 60 Support 79 69 During the year, none of the trustees received any remuneration in respect of their ServI￿S as trustees for 202412025 (202312024.. £0). Out of pocket travel and subsistence expenses amounting to £55212023124.. £1,874) were reimbursed to 3 trustees during the year ended 31 March 2025 (2023124: 5). The key nianagement personnel of the charity comprise the trustees, the Chief Executive Off￿cer and Senior Leadership Team. The total remuneiation (including pension contributions and employer's National Insurance contributions) paid in respect of key management personnel for the year was (6 FTE) £413,477 {2023124- (3 FTE) £212,531) 11. Taxatlon The Company is a Registered Charity (number. 1087210). All activities are undertaken to fulfil the primary objectives of the charily and are therefore exempt under Part 11 of the Corporation Tax Act 2010. THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE (LIMITED BYGUARANTEE} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 12. Intangible fixed assets Computer software Cost At 1 April 2024 Additions Disposals At 31 March 2025 53.337 53,337 Deprectatlon At 1 April 2024 Charge for the year Disposals At 31 March 2026 53,337 53,337 Net book value At 31 March 2025 At 31 March 2024 13. Tangible fixed assats Computer equipment Cost At 1 April 2024 Additions Disposals At 31 March 2025 49,114 49,114 Depreciation At 1 April 2024 Charge for the year Disposals At 31 March 2025 49,114 49,114 Net book value At 31 Mar¢h 2025 At 31 March 2024 THE STJOHN AND RED CROSS DEFENCE MEDICALWELFARE SERVICE (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 14. Debtors 2025 2024 Amount due from the Ministry of Defence Trade debtors Prepayments and accrued income 59,658 196,536 250,209 506,403 59, 330 148, 805 171,629 379, 764 15. Credltors: amounts falling due within ona year 2025 2024 Trade creditors 27,326 24,014 5,007 65, 930 73,971 523,291 Other creditors Taxation and social secuTity costs Accruals 76,223 166,143 435,519 Deferred income 705,211 692,213 2025 2024 Deferred Income., At 1 April 2024 Released in year Deferred in year At 31 March 2025 523.291 {2,275,528) 2,187,756 555, 259 (2, 179, 086) 2, 147,118 523,291 435,519 16. Leasing commitments At 31 March, DMWS had total commitments under operating leases payable as follows.. Land and buildings 2025 Other 2024 2025 2024 Within one year Within two to five year5 38,429 36.000 74.429 38, 429 72, 000 110.429 2,275 4,550 6,825 3, 109 5.054 8,163 THE ST JOHN AND RED CROSS DEFENCE MEDICALWELFARE SERVICE (LIMITED BYGUARANTEE} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 17. Restricted funds At 1 April 2024 At 31 March 2025 Income Expenditure National Framework 480,709 453.837 231,608 695.487 535,781 545,576 2,942,998 (480,709) (453,837) {231,608) (656,095) {538,009) (545,576) 2,905,834 Office for Veterans Affairs Veterans NHS ThrivelVPPP 3.126 2,228 42,518 Other Grants & Funding Scotland 5,354 42,518 The restricted funds are monies raised for, and their use restricted to, a specific purpose, or donations subject to condition8 imposed by the donors as follows: National Framework Fund Funding received to increase our Welfare Provision geographically across the UK, lo support Army beneficiaries and their families. This funding is used to develop our projects in areas where demand is unmet and regional NHS Trusts have in turn pledged a financial contribution to help fund their work with us. Office for Veterans Affairs Fund To work collaboratively to provide a medical welfare service for British military personne5, veteians and their families to ensure Ihey have access to the best health and well-being support in both Northern Ireland and Lanarkshire, Scotland. Veterans NHS Fund To fund collaborative projects providing medical welfare support to Ihe wider Amied Forces Community, within geographical NHS settings. ThrivelVPPP Fund To build sustainable and resilient networks to ensure veterans, and, their families, (via Thrive), receive prompt effective and lailored support. other Grants and Funding Miscellaneous, region-specific funding to assist us in to supporting Army beneficiaries across nominated areas within in the UK with non-clinical issues. which adversely affect their health and wellbeing. Scotland Funding received specifically for projects based in Scotland. THE 5TJOHN AND RED CROSS DEFENCE MEDICALWELFARE SERVICE (LIMITED BY GUARANTEE) NOTES TOTHE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH2025 18. Total funds At31 March 2025 At 1 April 2024 Income Expenditure Transfer Rèstrlcted funds (as above Dèslonated funds Urgent response fund IT development fund Fundraising investment fund Total Designated funds Unrestrlcted funds {exel designatèd) Total funds 5,354 2,942,998 {2,905,834) 42,518 100,000 150,000 50,000 300,000 (300,000) 100,000 150,000 50,000 300,000 729,126 1,071,644 676,405 681,759 1,231,608 4,174,606 (878,887) 3,784.721 Transfers totalling £300,000 have been made from the general unrestricted fund to the designated funds as detailed below. Urgent response fund The fund is to be established to ensure DMWS can support emerging and urgent issues should they aTlSe. Ongoing global uncertainlies have highlighted the need for us to design, resource and implement comprehensive training in readiness to respond. Funds totalling £100,000 have now been designated from DMWS, general unrestricted fund to ring-fence monies to apply for this purpose. IT devolopment fund The fund is to be established to enable DMWS to undertake major planned development of its IT infrastructure. Funds totalling £150,000 have now been designated from DMWS, general unrestricted fund to ring-fence monies to apply for this purpose. Fundraislng investment fund The fund is to be established to ensure DMWS, sustainability by developing the fundraising and marketing department and expand its market reach. Funds totalling £50,000 have now been designated from DMWS, general unrestricted fund to ring-fence monies to apply for this purpose. 36 THE STJOHN AND RED CROSS DEFENCE MEDICALWELFARE SERVICE (LIMITED BYGUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 19. Analysis of not assets between funds Unrestricted funds Restricted (inc designated) funds Total Fund balances at 31 March 2025 are represented by: Current assets Creditors.. Amounts falling due within one year Total 2025 1.734,337 (705,2111 1,029,126 42.518 1,776,855 (705,211) 1,071,644 42,518 Unrestricted funds Restricted funds Total Fund balances af 31 MarGh 2024 are represented by.. Current assets Credifors.. Amounts falling due within one year rotal 2024 1,368,618 (692,213) 676,405 5, 354 1,373,972 (692,213) 881, 759 5,354 In the current year unrestricted funds include designated funds of £300,000 (2024'.£nil). THE ST JOHN AND RED CROSS DEFENCE MEDICAL WELFARE SERVICE (LIMITED BY GUARANTEE) NOTES TOTHE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 20. Connected oharities DMWS was established by the trustees of the Joint Committee of the Order of the Hospital of St. John of Jerusalem and the Brilish 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 orwinally 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 truslees 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 ofAssociation came intoeffect on 1 January 2006 and Ihese, togetherwilh an associated Tripartite Memorandum of Agreement, resulted in transfer of the membership rights in DMWS to the Prior of the PrioryofEngland and the Islands of the Orderoflhe Hospital of StJohn ofJerusalem (the Prior) and the Chairman of the British Red Cross Society (the Chairman). From that same date the appointrnent ofTrustees of DMWS became a matter forthe Board, which is informed by the recommendations of its Nominations Committee. Further revisions were made to the Memorandum and Articles ofAssociation, 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 wrilten 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 Hospilal 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 Irustees as it conflicts with Ihe amendment to 5.4 and amending Article 6.5 regarding the selection of the Chair and Deputy Chair. 21. Related party transactions During the year the charity received an unrestricted donation from the Queen Mary'5 Roehampton Trust totalling £35,000 (2023124 £30,000) ofwhich James Macnamara is a trustee and an unrestricted donation of £0 (2023124 £2,170) from The Orders of Sl John Care Trust of which James Macnamara is also a trustee.