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2023-06-30-accounts

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THE
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The Gurkha Welfare Trust Annual Report & Accounts 1 July 22 - 30 June 23

TRUSTEES, OFFICIALS AND ADVISORS TO THE TRUST

PATRON

King Charles III

VICE-PATRON

Dame Joanna Lumley DBE

TRUSTEE DIRECTORS

Lieutenant General R Wardlaw OBE (Chairman)[*]

S J Cooper Esq

J G R David Esq

P M A Grant Esq

Mrs R Kearsley (from 13 April 2023)

Dr J D Keeling MBA, MB BS, FRCGP, DRCOG

Mrs A Levin

Major (Retd) Hemchandra Rai MBE BEM Colonel D Rex MVO[***]

Colonel D J Robinson[**]

Ms C L Turner (to 14 December 2022)

AUDIT AND FINANCE COMMITTEES

S J Cooper Esq (Chair)

Mrs R Kearsley (from 13 April 2023) Dr J D Keeling MBA, MB BS, FRCGP, DRCOG

MEMBERS

Major General (Ret’d) J J Cole CBE (to 17 September 2022)[****]

Brigadier J L Clark CBE[****]

Brigadier M Fayers (from 17 September 2022)[****]

Brigadier P S Reehal MBE[*] Major General G M Strickland DSO MBE *

* Ex offi cio Trustee – Colonel Commandant Brigade of Gurkhas

** Ex offi cio Trustee – Colonel Brigade of Gurkhas

*** Nominated – Gurkha Brigade Association

**** Nominated - The Royal Gurkha Rifl es, The Queen’s Gurkha Engineers, The Queen’s Gurkha Signals and The Queen’s Own Gurkha Logistic Regiment

SENIOR MANAGEMENT TEAM – GURKHA WELFARE TRUST

Al Howard Esq – CEO

Colonel (Ret’d) Nigel Rowe – COS and Company Secretary

Adam Bentham Esq – Head of Fundraising and Communications

Captain (Ret’d) Gary Ghale – Head of Gurkha Welfare (UK)

Francine Coles – Head of Finance

FIELD DIRECTOR

Colonel Paul Smith[*]

* Defence At aché - providing advice on political and military aff airs, focal point for veterans groups and in-country assurance.

INVESTMENT MANAGERS

Sarasin & Partners LLP Juxon House 100 St Paul’s Churchyard London EC4M 8BO

BANKERS

The Royal Bank of Scotland Lawrie House Victoria Road Farnborough GU14 7NR

HSBC Bank plc 90 Baker Street London W1M 2AX

SOLICITOR

Wilsons Solicitors Alexandra House St Johns Street Salisbury SP1 2SB

Ms C L Turner (to 14 December 2022)

INVESTMENT COMMITTEE

P M A Grant (Chair)

Major General (Ret’d) J J Cole CBE (to 17 September 2022)[****]

J G R David Esq

Brigadier M Fayers (from 17 September 2022)

P M Rigg Esq

A Brown Esq

GOVERNANCE COMMITTEE

Mrs A Levin (Chair) Colonel D Rex MVO[*] Colonel D J Robinson[]

SENIOR MANAGEMENT TEAM – GURKHA WELFARE TRUST (NEPAL)

Lieutenant Colonel Mat Hing RLC – Field Director, GWT(N)

Lieutenant Colonel (Ret’d) Yam Bahadur Rana, Deputy Field Director, GWT(N) (to 31 August 2023)

Captain (Ret’d) Phat a Bahadur Gurung (from 1 September 2023) Dr Gerda Pohl – Medical Director, GWT(N)

Deepak Shrestha Esq – Project Director RWEPP

Aahat Regmi Esq – Finance Director, GWT(N)

AUDITORS

Crowe U.K. LLP 4th Floor, St James House St James Square Cheltenham GL50 3PR

REGISTERED ADDRESS

The Gurkha Welfare Trust PO Box 2170 22 Queen Street Salisbury SP2 2EX

Company Limited by Guarantee Number: 5098581

Registered Charity Number: 1103669

1 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

CONTENTS

SECTION Page TRUSTEES, OFFICIALS AND ADVISORS TO THE TRUST . . . . . . . . .1 WELCOME FROM THE CHAIRMAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 WELCOME FROM THE CEO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 THE GURKHA WELFARE TRUST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 HOW WE WORK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 OUR YEAR IN NUMBERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 OUR IMPACT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 CHARITABLE EXPENDITURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 OUR PLANS FOR THE YEAR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 OUR FUNDRAISING PERFORMANCE . . . . . . . . . . . . . . . . . . . . . . . . .17 CHARITABLE ACTIVITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21 OUR FINANCIAL REVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 OUR PEOPLE AND CULTURE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29 OUR POLICIES AND DISCLOSURES. . . . . . . . . . . . . . . . . . . . . . . . . . .35 STATEMENT OF TRUSTEES’ RESPONSIBILITIES . . . . . . . . . . . . . . .39 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE GURKHA WELFARE TRUST . . . . . . . . .40 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 JUNE 2023 . . . . . . . . . . . . . . . . . . . . . . . . .43 CONSOLIDATED AND CHARITY BALANCE SHEET AT 30 JUNE 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2023 . . . . . . . . . . . . . . . . . . . . . . . . 46 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 2023 . . . . . . . . . . . . . . . . . . . . . . . . .47 FUNDRAISING ACKNOWLEDGEMENTS . . . . . . . . . . . . . . . . . . . . . . .73

The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 2

WELCOME FROM THE CHAIRMAN

Launched in 1969 to provide welfare support to Gurkha ex-servicemen and their families, The Gurkha Welfare Trust remains just as vital today, providing welfare support through the monthly pension to over 3,000 of our most vulnerable benefi ciaries and medical support to over 28,000 benefi ciaries.

Throughout the last 53 years the Trust has evolved to meet the needs of our veterans and their families and today we provide our support through our network of 21 Area Welfare Centres with modern medical facilities providing an international standard of primary medical care.

With an aging demographic, I am immensely proud to see how our staff and services have evolved; our investment in greater mobility has enabled an increased focus on delivering all services to the benefi ciaries in their own homes and thereby avoiding the of en arduous travel to our Centres, which can sometimes take several days.

During the last year we have increased our rehabilitation services with outstanding results – to be able to see someone previously bed-bound, become upright and mobile within their own home again, gets to the heart of our activity.

Unfortunately, these services do not come without their fi nancial challenges; the Trust is working closely with the Ministry of Defence to secure the provision of future medical services in line with NHS primary care services. We are also extremely grateful to a number of specialists who have volunteered their time to travel to Nepal and provide training and assurance of the services we deliver.

The withdrawal of UK Overseas Aid funding over the next 18 months will impact the Trust directly. As the sole partner with DfID/FCDO for the delivery of clean, accessible water to communities throughout Nepal for over 30 years, the Trust has made a profoundly positive impact through the rural water and sanitation programmes. Whilst we will be seeking to increase our fundraising to fi ll some of the funding gap, we will be unable to continue at the current level of activity. Many of the staff within the water team are experts in their fi eld and have worked with the Trust for many years; the loss of a considerable proportion of the team is disappointing and hard for all.

The geographic position of Nepal between two huge tectonic plates leads to a high risk of earthquakes. Since the last major earthquakes in 2015, the Trust has been building earthquake resilient homes for our most vulnerable pensioners and is mid-way through a retrofi t programme across our Welfare Centres to ensure they can withstand the eff ects of a future earthquake. Following a disaster, our Area Welfare Centres will be the hubs from which we launch our disaster response and support both our own benefi ciaries and their communities It is therefore essential that our staff and buildings are resilient and will remain intact. We have seen in the most recent earthquakes in rural western Nepal, that many of the older traditional homes and buildings have collapsed leading to fatalities. Whilst a rural area, thankfully all our staff and benefi ciaries remained safe and unharmed. Earthquakes are sudden and strike without warning – our disaster planning and fi nancial disaster response reserves enable the Trust to provide an immediate and eff ective response.

All of this work can only be achieved through the dedication and commitment of our staff in both Nepal and the UK. This report provides details as to just how much has been achieved, for which, on behalf of the Board, I pass on my sincere thanks and gratitude.

Jai Gurkha!

Lieutenant General Richard Wardlaw OBE Chairman, The Gurkha Welfare Trust

The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 4

WELCOME FROM THE CEO

Dear Supporter,

This financial year has been marked by some superlative highs and sadly tempered by some significant lows.

On 15th January 2023, Yeti airlines flight 691 crashed in Pokhara killing all 72 occupants on board. Tragically, this included Dr Ganesh Thapa, a valued and much respected member of GWT. Our thoughts and prayers are with his family and loved ones.

On 22nd April 2023, Capt (Retd) Ram Bahadur Limbu, the last living Gurkha recipient of the Victoria Cross passed away. GWT had been providing medical assistance and when I visited him in December 2022 he was on excellent form. However, afer a protracted period of ill health he passed away aged 83.

On a happier note it has been a year of, literally, high achievement for one of our GWT Ambassadors, Hari Budha Magar, who became the first above knee double amputee to scale Mount Everest on 19th May. Hari lost both his legs to an IED explosion in Afghanistan in 2010 while serving in 1 RGR. He has been inspirational in highlighting the plight and needs of the physically disabled in Nepal and elsewhere. We wait to hear details of his next awe inspiring challenge!

Another GWT Ambassador, Johnny Fenn was also engaged in a gargantuan challenge by walking the length of Nepal, some 1500 miles. Johnny is no stranger to Nepal having previously headed up GWT’s operations in Nepal for several years while serving in the Gurkhas. He completed his journey on 30th April afer some 4 months and losing 16.5% of his body weight in the process!

We also welcomed a new Ambassador in to the GWT fold, Mira Rai. Mira is an accomplished ultraendurance athlete who is inspiring a new generation of young women to achieve their dreams and goals.

With the cost of living crisis and high inflationary environment in UK following on from Covid, fundraising has continued to be challenging. However, our supporters have continued to display typical loyalty and generosity to our cause even during times of financial pressures for which we are, as always, extremely grateful. All the details on our fundraising activity can be found in this Annual Report but suffice it to say that we have met our targets which allow us to continue to support our veterans in Nepal.

In Nepal, our teams have continued supporting our veterans and communities tirelessly. In particular, our RWEPP team, which provides clean accessible water to remote communities received, once again, an A* rating from FCDO. Unfortunately, due to the conflation of a number of events – the reduction in ODA spending to 0.5% of GDP, the war in Ukraine and Nepal’s impending elevation from less developed to middle income status, our 30 year relationship with FCDO (formerly DfID) was due to end on 30th June 2024; although with the provision of additional funding this has now been extended to 30th March 2025. Given the ongoing requirement for water throughout Nepal, GWT will continue to build water projects into the future, sadly but necessarily, on a reduced scale.

Other work this year has been the continued construction of earthquake resilient homes for our most vulnerable beneficiaries and the retrofiting of our Welfare Centres around the country to ensure that these vital platforms for the delivery of support are equally resilient to ensure continuity of support even during times of natural disaster.

5 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

The next fi nancial year will be no less busy for the UK and Nepal based teams. Our ageing benefi ciary population continue to register their eligibility for our standard leading medical services which coupled with their increasingly complex medical needs and soaring rates of infl ation has seen a dramatic increase in the cost of this vital service. Discussions with the MOD to increase its funding of these services continue in order to allow us to maintain current levels of service.

With the cessation of FCDO funding for water projects we will be restructuring our water department and ensuring a smooth transition so that our new GWT funded entity provides continuity of delivery.

As ever, I will sign off with a thank you to you all for your continued support which has been exceptional even during these challenging economic circumstances. Each and every donation makes a huge diff erence to the lives of our former Gurkhas in Nepal.

Al Howard

The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 6

THE GURKHA WELFARE TRUST

The Gurkha Welfare Trust provides vital support to Gurkha veterans, their families and communities in Nepal. We have been working in Nepal for over 50 years, delivering essential fi nancial and medical aid to Gurkha veterans and widows, and working with local communities to provide access to clean water and education.

WHO ARE THE GURKHAS?

The Gurkhas are soldiers from Nepal who are recruited into the British Army (or the Indian Army), and for over 200 years have commit ed themselves to the service of the British Crown.

To this day, the Gurkhas remain renowned for their loyalty, professionalism and bravery, and in military service have been awarded a total of 13 Victoria Crosses.

OBJECTS:

The Trust’s Objects are:

The Trust’s Vision is: “Gurkhas living with dignity”. Welfare support is delivered against the following priorities:

7 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

OUR HISTORY

The Gurkha Welfare Trust provides vital support to Gurkha veterans, their families and communities in Nepal.

We have been working in Nepal for over 50 years, delivering essential fi nancial and medical aid to Gurkha veterans and widows, and working with local communities to provide access to clean water and education.

In the late 1960s, following the end of various Eastern confl icts, there was a signifi cant reduction in the number of serving Gurkhas in the British Army. It was realised that many Gurkha soldiers and their dependants or widows in Nepal faced destitution in old age. Many of these soldiers had served in the World Wars; however, they had not served the 15 years needed to qualify for an Army pension.

Unlike their British counterparts who could rely on the welfare state in old age, the Nepali Gurkhas had no such safety net.

Debt of honour

In recognition of the country’s debt of honour to these soldiers, a public appeal, led by eight of our greatest wartime Field Marshals raised £1m to establish The Gurkha Welfare Trust (advert in The Times pictured below).

The Trust then began to create a network of bases in Nepal to distribute fi nancial aid to retired soldiers who had met with disasters such as landslides and fl oods. We also bought land for ex-Gurkhas to become subsistence farmers and provide enough food to support their families.

From that arrangement we later began paying our regular Welfare Pension payment, expanded our remit to include community initiatives like schools and water projects and developed a comprehensive medical scheme across Nepal.

SUPPORTING GURKHA HEROES

Gurkha veteran Jitbahadur Gurung fought alongside the British Army in World War Two. Enlisting in 1940, Jitbahadur served in India, Singapore and Malaysia, before being captured by the Japanese and held as a prisoner of war.

“I fought against the Japanese and was captured in Singapore, kept a prisoner until 1945. We were given corn and soybeans to eat. We used to wear clothes that had been thrown away.”

When Jitbahadur and his comrades were liberated, they boarded a ship back to India. It took him days to walk back to his remote village in the hills of Nepal. “Having enlisted in 1940 and being away for such a long time without any contacts, my family and villagers had thought I had died. They were all surprised to see me back,” he said.

Jitbahadur remained in his village in the years af er the war, supporting himself and his young family on what he grew in the fi elds. They survived on what they could, but at times it was very diffi cult to get by. When we came to learn of Jitbahadur’s situation, we began to support him with fi nancial and medical aid.

“The pension helps father to buy and eat what he wants or wear what he wants to,” said Gandhoj, Jitbahadur’s son. “It would have been diffi cult for him without the pension at this age. He is able to buy slippers, or else he would be walking barefoot!”

Although we usually travel to the homes of Gurkha veterans and widows to deliver their pension and a health check-up, Jitbahadur prefers to travel to our Area Welfare Centre in Syangja. He’s very fi t for a 101 year-old, enjoying walks around his village and cut ing grass for his buff alo during the day.

The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 8

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N
LAMJUNG
BAGLUNG
BHERI KASKI
POKHARA
GULMI SYANGJA
TANAHUN
BUTWAL
CHITWAN
Headquarters
Areas Welfare Centre (AWC) x 20
Residential Home (RH) x 2
Permanent Patrol Base (PB) x 2
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9 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

HOW WE WORK

The Trustees have given due regard to the Charity Commission’s guidance on reporting public benefi t when planning the charity’s activities and are satisfi ed that the Trust is fully compliant with the Charities Act 2011.

1. INDIVIDUAL AID

In the form of the Welfare Pension, Winter Allowance, Disability Support Grants, Welfare Grants, Home Carer’s Allowance, Funeral Grants and our Earthquake - Resilient Homes. These are provided perennially to ensure that our core benefi ciaries, Gurkha veterans and their families, are able to live with dignity.

2. COMMUNITY AID

Enhanced support is provided to veterans and widows living in our two Residential Homes, marked on the map below. In addition, free primary medical care is provided to all eligible individuals as well as subsidised secondary healthcare treatment.

Provided in the form of schools, accessible drinking water and medical camps. The primary benefi ciaries of these activities are the general public.

All of this is coordinated via our network of Area Welfare Centres, marked on the map below.

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secondary healthcare treatment.
GORKHA
KHANDBARI
BAGMATI
BHOJPUR
TAPLEJUNG
RUMJATAR
DIKTEL
PHIDIM
DARJEELING
TEHRATHUM
DHARAN
DAMAK
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The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 10

OUR YEAR IN NUMBERS

1 July 2022- 30 June 2023

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Provided NPR14,500 per month
to over 3,400 Gurkha
veterans and widows.
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Provided NPR11,600 per month of Disability
Support Grants to 239 recipients.
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We distributed 954 Hardship Grants and 285 funeral grants.

Home Carers allowance was received by over 300 carers.

We supplied over 4,000 rice cookers to help those in need during the winter months.

11 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

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Over 21,200 patients accessed our
medical services.
Over 8,400 fl u vaccines and 2,200
pneumococcal vaccines prescribed.
We gave palliative care to over
210 people.
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We have built 2 major schools. Completed 17 minor extensions. Carried out 81 refurbishments.

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We built 73
Earthquake
Resilient Homes.
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Over 13,360 Welfare Advice Centre cases in the UK.

Enabling grants through the ABF of £250k.

We provided Disaster Risk Reduction awareness training to over 4,160 people.

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We completed 36 water projects.
We installed over 1,590 tap stands.
Get ing clean fresh water to over
8,800 people.
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We have 36 permanent residents across 2 residential homes.

We supported 25 pensioners with rehabilitation in our residential homes.

The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 12

OUR IMPACT

For an organisation with relatively few resources in the UK, the Trust continues to deliver an impact far above its weight in Nepal, thanks to the incredible support from donors.

Though at its core, the support of elderly and vulnerable Gurkha pensioners remains a priority, the wider services across Nepal continue to deliver an exponential impact.

The medical service available to all Gurkha veterans and their dependants is now our most expensive service to deliver but also the one which generates the biggest impact across Nepal. In a country with no national health service and of en lit le or no access to medical care at all, the professional service the Trust delivers grants veterans and their families the basic human right to eff ective healthcare.

The chart below indicates our charitable expenditure across the year.

CHARITABLE EXPENDITURE

Water and Sanitation (£2.39m)

Last year we completed 44 water projects, installed 1,590 tap stands and benefi ted over 8,800 people.

Schools (£1.27m)

We constructed two major two-storey schools including libraries and library training, 17 school extensions and 81 school refurbishments.

Residential Homes (£0.47m)

Last year there were 36 permanent residents across our two Residential Homes. They were also used as hubs to rehabilitate 25 patients.

13 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

Financial Aid (£3.96m)

We paid a pension worth 14,500 Nepali Rupees per month to over 3,400 vulnerable Gurkha veterans and widows. We provided a Disability Support Grant to 239 people.

Welfare support (£4.17m)

During the year, we provided 954 hardship grants, 285 funeral grants and built 73 new earthquake-resilient homes for Gurkha veterans and widows.

We gave a Home Carer’s Allowance to 302 people and distributed Rice Cookers to all welfare pensioners through the Winter Allowance.

Medical Aid (£9.33m)

Over 21,000 patients accessed GWT medical services and our medical teams undertook over 8,800 home visits. Over 5,000 rehabilitation treatment sessions were provided either in the home or through our medical centres.

We treated 120,920 medical cases and dispensed 53,481 items of medication. We treated over 2,200 patients at our four medical camps in Kalikot, Mugu, Bajura and Sankhuwasabha.

The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 14

OUR PLANS FOR THE YEAR

Continued implementation of disaster resilience enhancements to the Area Welfare Centre (AWC) network:

This is a multi-phase programme ensuring that our permanent footprint is able to withstand and continue to operate in times of natural disaster. Progress this year includes:

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AWC Rumjatar
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Engagement with MOD on further fi nancial support for Nepal based veteran medical provision.

Discussions with MOD have been positive with a commitment to increase funding to ensure that there is no reduction in the current level of services and to ensure that this vital provision is future proofed against infl ation.

Assessment of longer term options for medical provision in Darjeeling.

Following a review of available options, GWT signed an annually renewable 5-year agreement with International SOS, who currently provide our medical support in Darjeeling. This will allow a continuity of service and the ability to utilise International SOS’s Indian support network, ensuring the best possible service for our

Future Plans:

The following objectives have been identifi ed for FY 2023/24:

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AWC Phidim
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AWC Khandbari
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AWC Diktel
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AWC Bhojpur Rebuild
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15 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

•+•

OUR FUNDRAISING PERFORMANCE

It is incredibly important for the Trust that it remains transparent to supporters in terms of the amount it raises and spends. Trust is the most important factor when considering a gif to charity and, as you might expect, our fi nances are run and reported on with military precision.

For every £1 we spent on fundraising last year, we raised £5.49.

Last year the Trust raised £13.67m through its fundraising, of which nearly half came in via legacies kindly lef to the Trust by supporters in their Wills.

WHERE DOES MY DONATION GO?

Last year, for every £1 of income, The Gurkha Welfare Trust, spent just 12p on fundraising (including management of our investments) and 88p on supporting Gurkha veterans, widows and their wider communities.

Charitable activity 88.4%

Investment management 1.4% Fundraising 10.2%

FUNDRAISING STRATEGY

fundraising strategy concluded at the end of this year (22/23). Its focus has been weighted towards the generation of funds from individual supporters via quarterly campaigns. This year was no exception and the British Public continued to show exceptional support for Gurkha veterans, their families and communities in Nepal despite economic cross winds in the UK.

As the Trust enters a new strategy, there is a need to further communicate the enormous span of activity that we now deliver in Nepal beyond the traditional Welfare Pension that we pay our most vulnerable Gurkha veterans and widows.

The strategy also needs to be delivered in the context of the post-pandemic cost-of-living crisis that has highlighted the need for more depth and resilience across other fundraising streams.

17 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

FUNDRAISING RETURN ON INVESTMENT (ROI)

The graph on the right shows the fundraising Return on Investment that the Trust has achieved in previous years. NCVO’s Civil Society Almanac has tracked ROI from Fundraising from 10,000 sets of charity accounts across the past 18 years: The highest was £5.22 (2004/05) and the lowest £3.91 (2012/13). The average between 2000/01 and 2018/19 was £4.51. Last year GWT was able to achieve £5.49, in 2021/22 the ROI was higher at £6.93, refl ecting the increased legacy income, and in 2020/21 £6.33.

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£9.00
£8.00
£7.00
£6.00
£5.00
£4.00
£3.00
£2.00
£1.00
£0.00
14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23
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FUNDRAISING INCOME

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Individual Giving
Major Donors
Trusts
Corporates
22/23
FUNDRAISING INCOME
(EXC LEGACIES): Community
Events & Challenges
£7.01m Gif Aid
Merchandise
22/23
LEGACY INCOME:
----- End of picture text -----

22/23 LEGACY INCOME: £6.66m 76% of which came from previous GWT supporters.

Over the course of the year the total fundraising income was £13.670M.

Total fundraising expenditure was £2.488M.

Income was boosted signifi cantly by strong legacy income, with an average of 76% of these gif s coming from known GWT supporters.

The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 18

FUNDING PARTNERS

The Ministry of Defence (MOD) continues to provide an annual Grant in Aid (£3.3M) towards staff and administration costs of the GWT(N) in support of welfare delivery. This enhances value for money for donors as it allows, in conjunction with investment income, donations to be spent directly on welfare projects. The MOD also provides a £2.75M Grant in Aid in support of the Trust’s healthcare provision for veterans in Nepal.

A five-year accountable grant agreement (£19M) with the UK’s Foreign, Commonwealth and Development Office (FCDO) commenced on 1 July 2021, for the provision of Water, Sanitation and Hygiene and Emergency Preparedness. Unfortunately, due to Central Government funding cuts, FCDO were unable to fulfil their annual grant commitment and as a result in-year funding was reduced to £1.7M.

FUNDRAISING POLICY

The Charity Commission issued guidance “Charity Fundraising – a guide to Trustee duties” and the Fundraising checklist (CC20) in 2016. The 2023 assessment was reviewed by the Audit Commitee in March 2023.

19 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

FUNDRAISING HIGHLIGHTS

Supporters generously raised funds for our work in a variety of ways over the year. Notable activities included:

DINNER AT THE HOUSE OF LORDS

The Rt Hon the Lord Lancaster of Kimbolton, TD PC hosted a special event at the House of Lords on the evening of 17th January in aid of the Trust.

The Band of the Brigade of Gurkhas and 2nd Bat alion Royal Gurkha Rifl es Pipes and Drums put on a rousing performance in Speaker’s Court to kick off the fundraising event. Those watching the riveting show included the Speaker of the House of Commons. Af erward, guests moved to the House of Lords for a drinks reception, dinner, silent auction and speech from the Secretary of State for Defence, Rt Hon Ben Wallace MP.

TEAMS CONQUER TRAILWALKER 2022

This year, 764 individuals joined 191 teams to traverse the South Downs Way. Gurkha pipers were on hand to encourage teams through the start and

Teams had a target to fi nish the 100km course in 30 hours or less, and put in an incredible eff ort to tackle the hilly route as fast as possible. The winning team was the Queen’s Gurkha Signals, who crossed the fi nish line in an incredible 10 hours and 16 minutes. Coming in second were the Queen’s Gurkha Engineers at 11 hours and one minute, and third to cross were the ‘A Team’ from The First Bat alion, The Royal Gurkha Rifl es at 11 hours and 38 minutes.

Net proceeds for the event of £139k were shared between GWT and Oxfam GB.

NEPAL STAFF TAKE ON EPIC CYCLE RIDE

In March, three of our staff from AWC Darjeeling cycled 135km in just two days through the stunning Himalayan foothills.

Vinod, Indra, and Rajendra started in Sikkim and rode through Namche, Singtam and Teesta, covering elevations up to 2,140m.

In total the team raised over £1,300 for the cause.

The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 20

CHARITABLE ACTIVITIES

OUR MOST VULNERABLE GURKHAS

PENSIONER SUPPORT TEAMS

MOTIRAS GURUNG’S STORY

Rifl eman Motiras Gurung is 100 years old and still clearly remembers the hardship he endured as a soldier.

Motiras enlisted in India in 1942. Af er training, he was posted to the 4th Gurkha Rifl es. He served in the Burma confl ict where he was injured, leading to medical discharge from the army.

“We used to carry the rifl e fully loaded for 24 hours during the war. We had fi ve magazines, a small shovel to dig the trenches and a bot le of water. We weren’t allowed to drink without orders. During one of the patrols in the evening, we were ambushed. I was hit and I fell to the ground. I remember another friend was also hit behind me. I was immediately carried away… I don’t know what happened af er that. I was fortunate the bullet hit my arm, if it was 6 inches to the lef , I may not have lived.”

As our pensioners grow older, they are increasingly vulnerable, and many are reliant on home visits by our Mobile Support Teams who deliver pensions, carry out health checks and deliver medical equipment, mobility aids and medicines. Fif y-four percent of our pensioners are now over 80 years old, and over 60 of them are centenarians. Without our continued intervention, many of them would be totally isolated and unable to look af er themselves.

Our medical teams undertook 8,870 home visits over the course of the year.

WELFARE PENSION

We pay a pension to thousands of impoverished Gurkha veterans or widows in Nepal who are not eligible to receive a British Army pension. The rate is calculated each year using a ‘shopping basket’ of basic goods such as rice, vegetables and fi rewood. For many people, this is their only source of income.

Disability Support Grants are provided for disabled dependants of Gurkha veterans and widows to help them live in comfort and with dignity. Without this fi nancial support, and in the absence of a developedworld health system, disabilities can pose an insurmountable obstacle in Nepal.

The Home Carers Allowance is a grant for family members of Gurkha veterans or widows who care for them full time and are not able to work.

For many years Motiras worked as a labourer in India. When he returned to Nepal to be with his family, they struggled to survive on what lit le they could cultivate in the village. Motiras now receives a monthly pension and our mobile health team visits him regularly to check on his health.

“The money means we don’t have to solely depend on our son or borrow money from others. We are able to spend on what we like… We have lived a life of hardship for so long, but we survived somehow. It is very good now that GWT is looking af er us.”

Last year we paid a pension worth 14,500 Nepali Rupees per month to over 3,400 vulnerable Gurkha veterans and widows. We provided a Disability Support Grant to 239 people, and a Home Carer’s Allowance to 302 people.

21 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

CORE PENSIONER DEMOGRAPHICS

Broadly, those in receipt of the Trust’s Welfare Pension are considered to be the most vulnerable of our benefi ciaries in Nepal and as a result are furnished with the most support in the form of a pension, home visits, medical care, pharmaceuticals, rehabilitation services and more.

----- Start of picture text -----
||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---| |CORE|CORE PENSIONERS BY REGIMENT| |REGIMENT|PENSIONERS| |10GR| |1GR|119| |500|7GR| |2GR|275| |3GR|117| |6GR| |4GR|154|400| |5GR|119| |6GR|394|300|2GR| |7GR|491| |8GR|92|200|QGE| |9GR|211| |10GR|518|QGS| |100| |11GR|5| |QGE|178| |QGS|104|0| |GTR|153| |GCSPF|47| |OTHER|198| |CORE| |AWC|PENSIONERS|CORE PENSIONERS BY AGE GROUP| |Bheri|88|Age in years| |Gulmi|126|35-39| |Kaski|311| |40-44| |Lamjung|81| |Gorkha|81|45-49| |Syangja|167|50-54| |Tanahun|139|55-59| |Chitwan|165| |60-64| |Burwal|357| |Bagmati|246|65-69| |Rumjatar|88|70-74| |Diktel|129| |75-79| |Bhojpur|72| |80-84| |Khandbari|50| |Tehrathum|57|85-89| |Taplejung|61|90-94| |Phidim|79| |95-99| |Dharan|378| |100+| |Darjeeling|211| |Damak|289|0|100|200|300|400|500|600|700|800|900|

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The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 22

EMERGENCY HARDSHIP GRANT

DISASTER PREPAREDNESS

We are needed the most during moments of tragedy. When disaster strikes in the form of fi re, fl ood, landslide or earthquake, GWT is ready to provide immediate assistance, by off ering fi nancial and other support.

We awarded over 960 Emergency Hardship Grants providing emergency supplies, essential items and home repairs for those hit by disasters including heavy monsoon rain, fl oods and landslides across Nepal and have provided 12 rainwater harvesting projects providing drinking water for our most vulnerable pensioners.

WINTER ALLOWANCE

Our Winter Allowance is an additional annual gif distributed to all of our pensioners to ensure that they are equipped to endure the colder months of winter.

We delivered rice cookers to over 4,000 vulnerable veterans and widows to ensure they were able to eat hot meals over the colder months.

HOME CARERS ALLOWANCE

Sometimes, family members of our Pensioners care for them full-time. When this happens they are able to apply for a grant from us to support them as they are unable to work.

Nepal is particularly prone to earthquakes and was hit most recently by a devastating earthquake in 2015. Many of our veterans and widows were aff ected and nationally the death toll was high. Af er distributing emergency aid in the immediate af ermath, and subsequently helping to rebuild communities, we have turned our at ention to our longer-term strategy.

Resilience for the next earthquake is central to our thinking. We have delivered training to our own staff and in due course will expand this to include the communities we serve. We are distributing essential items across Nepal and we have improved our ability to communicate in the event of a disaster.

HOMES FOR HEROES

MEDICAL CAMPS

We provide free specialist outreach care for people living in communities in the remote hills of Nepal, where access to such services is impossible for most. We focus on long term disabling condition such as cataracts, loss of limbs and hearing loss, as well as chronic dental issues. Cataract surgery, hearing aids or the provision of artifi cial limbs or even dentures can make a huge diff erence to those living in discomfort.

We saw a total of 2,413 patients at our four medical camps in Kalikot, Mugu, Bajura and Sankhusaba.

At our Medical Camp in Manma, Kalikot District, we carried out 429 dental treatments (of which 272 partial or complete dentures), assisted 40 patients with rehabilitation (mobility aids and artifi cial limbs). The ENT team performed 42 ear operations, and provided 58 patients with hearing aids.

Kerbahadur’s new earthquake-resilient home was built next to the home of his daughter-inlaw, where he had lived previously and shared a room with his grandsons. Now he has the space to live comfortably and with dignity, which is more important than ever at 96 years old. Most essentially, this home will keep Kerbahadur and his family safe from earthquakes, landslides, and fl ooding in Nepal’s unpredictable environment.

The Gurkha veteran and his family are also very grateful for the monthly Welfare Pension, which we are able to deliver thanks to generous donations from our supporters in the UK. “The amount that I receive is enough for me to buy food and clothing,” Kerbahadur said. “It is the blessings of Lord Buddha! The British have compassion for us.”

23 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

EARTHQUAKE RESILIENT HOMES

SCHOOL PROJECTS

We are also taking pre-emptive action by building earthquake-resilient homes for Gurkha veterans and widows.

Last year, we built 73 new homes for Gurkha veterans and widows.

Our schools programme builds, repairs and improves schools in remote regions of Nepal and in turn provides access to education and a beter future for Nepali children.

Last year we completed two total school builds, 17 school extensions and 81 school refurbishments.

MEDICAL AID

RESIDENTIAL HOMES

We provide high standard primary healthcare to Gurkha veterans and their families living in Nepal. We do this through our regional medical clinics, via home visits by our medical outreach teams and by arranging subsidised treatment at carefully selected national hospitals.

Last year over 21,200 patients accessed the Trust’s medical services. Over 8,400 flu vaccines were prescribed as well as 2,200 pneumococcal vaccines.

Palliative care was provided for 210 people and key medical equipment was loaned to over 150 pensioners.

Our two Residential Homes provide round-the-clock care to Gurkha veterans and widows who would otherwise struggle to live alone. With no comparable facility in Nepal, they set the standard of care for the elderly. The Residential Homes also provide inpatient hubs for our Rehab Services with bed spaces dedicated to rehabilitating beneficiaries on a shortterm residential basis.

Last year there were 36 permanent residents across the two homes and 25 pensioners who benefited from the rehabilitation facility.

UK ADVICE SERVICES

CLEAN WATER AND SANITATION

Our water projects bring clean water and sanitation to remote communities in Nepal. We install individual tap stands and toilets to households and schools. By ensuring a safe water source and providing a comprehensive education programme on the importance of sanitation we see sharp drops in water-borne diseases such as dysentery.

Last year we completed 36 water projects, installed 1,590 tap stands and provided 8,800 people with access to clean water.

Simple Drip Irrigation projects were installed in over 230 households to enhance the nutritional status of new mothers. In addition, over 6,700 people were trained on the importance of

It is not always remote villages that struggle with clean accessible water. Last year we undertook a major water project for the city of Dharan to mitigate the acute water shortages experienced during the dry season. This project benefits the city’s inhabitants but also the 3,400 veterans that also reside there.

Since the revised setlement ruling in 2009, many Gurkhas and their families choose to live in the UK. In collaboration with Headquarters Brigade of Gurkhas (HQBG), we established two Gurkha Welfare Advice Centres (GWAC) in 2010, one in Aldershot and another in Salisbury, to provide advice and signposting to government and charity support for those choosing to setle in the UK.

Last year the team saw over 13,360 Welfare Advice Centre cases in the UK and enabled grants through the ABF of £250k.

The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 24

OUR FINANCIAL REVIEW

Against the backdrop of global economic uncertainty, it has been another challenging year. The wider global economic turmoil and impact of the war in Ukraine, created signifi cant fl uctuations in the fi nancial markets resulting in increased infl ation rates, supply chain challenges and cost of living pressures. The resultant cost of living pressures in the UK have impacted on Individual Giving and some of our participation events, although the GWT remains incredibly well supported.

The political uncertainty in the UK in autumn 22, resulted in signifi cant fl uctuations in the strength of Sterling and the NPR/GBP Rate of Exchange (ROE); falling by 12% at the lowest in September 2022, but recovering to an average rate for the year of NPR155.09/£ in line with our budget assumptions.

Subsequent cuts in government overseas aid funding has impacted on RWEPP both in-year and for the long-term.

INCOME

Trust income from all sources during the fi nancial year 2022/23 was £24,599,000 (2021/22: £25,512,000).

Donations from individuals, companies, trusts and other organisations totalled £6,437,000 (2021/22: £6,993,000). We continue to be supported by the MOD who provided a grant of £3,335,000 (2021/22: £3,325,000) towards the cost of the means of delivery of our aid and a grant towards the provision of medical services £2,750,000 (2021/22: £2,525,000).

OUR INCOME

----- Start of picture text -----
Investments
Grant income
- Government Donations £24.6m
down 3.6%
from 21-22
Charitable Activity
- income
Gifs in Kind Fundraising - Trading
Legacies
OUR EXPENDITURE
Water Projects
Welfare Pensions
Com Aid (Schools)
Residential Homes
£24.4m
Disability
up 7.7% Support Grants
from 21-22 Winter Allowance
Welfare (Hardship) Grants
GWAC
Medical Aid
Home Care
----- End of picture text -----

25 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

Under the RWEPP agreement with the FCDO we received £1,746,000 (2021/22: £1,933,000).

Legacy income totalled £6,657,000 (2021/22 £7,997,000). The use of Gif Aid generated additional income of £735,900 (2021/22: £803,900).

Investment income increased to £2,703,000 (2021/22: £2,045,000) refl ecting strengthening in markets and increased interest rates for fi xed deposit accounts in Nepal.

EXPENDITURE

Charitable expenditure totalled £21,601,000 (2021/22: £20,071,000). This represents 88% of total expenditure (prior to movement in the constructive obligation) of £24,444,000 (2021/22: £22,705,000).

Our cost of raising funds including investment management is £2,843,000 (2021/22: £2,634,000) of which 95% is covered by our investment income of £2,703,000.

Fundraising expenditure of £2,488,000 (2021/22: £2,262,000) continues to be eff ective raising income of £13,670,000 (2021/22: £15,684,000). This represents a Return on Investment of £5.49 for every £1 spent (2021/22: £6.93). The rate of return was higher in the previous year due to exceptionally high legacy income; however it remains above industry standards.

OUR LIABILITIES

We have commit ed to provide the monthly Welfare Pension and Disability Support Grant to all entitled benefi ciaries. Using an actuarial valuation, the cost of the long term obligation is recognised in the annual accounts as a liability of £35.5M:

Welfare Pension : £28.9M 3,175 welfare pensioners Average age: 81 DOWN £3.6M from June 2022

Disability Support Grant : £6.6M 239 recipients Average age: 57 DOWN £0.2M from June 2022

RESERVES

There are three key areas against which we have specifi cally allocated resources: designated and restricted funds, and the Welfare Pension Constructive Obligation; these are explained below.

DESIGNATED FUNDS: The total designated funds at 30 June 2023 are £18,479,000 (2021/22: £19,628,000).

Residential Homes: £8,729,000 (2021/22: £8,919,000)

The Trustees are concerned that the level of running costs of the Residential Homes should not have a detrimental eff ect on our ability to provide support to the much wider community of Welfare Pensioners. Therefore, a designated fund has been created that is suffi cient to meet the annual running costs for 20 years and £400,000 to cover major refurbishments costs, through to 2035.

Disaster Response: £8,610,000 (2021/22: £8,709,000)

Following specialist advice on the risk of future earthquakes, in June 2018, the Trustees agreed to the creation of a designated fund to allow an immediate response to natural disasters. This is equivalent to ~50% of the GWT expenditure in response to the 2015 earthquake, uplif ed to current prices. Funds were allocated for the repair or replacement of 7 benefi ciaries’ homes during the year, destroyed as a result of the 2022 monsoon season (£29,000) Trustees agreed to the funding of secondary medical care claims for the treatment of COVID-related illness at a cost of £18,000 from the reserve. There was a net decrease to the Disaster Response designated reserve at the year-end refl ecting an increase due to the rate of infl ation off set by a reduction due to the rate exchange which had strengthened at 30 June 2023.

Rural Water and Emergency Preparedness (RWEPP): £1,140,000 (2021/22 £2,000,000)

GWT has agreed to continue to contribute £500,000 to RWEPP against planned FCDO expenditure for 2023-24 in line with the current Grant Agreement. Following the decision of FCDO to withdraw funding for the RWEPP Grant Agreement from 2024, Trustees have set aside designated funds of £640,000 to cover the potential costs of restructuring.

The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 26

RESTRICTED FUNDS : The total restricted funds at 30 June 2023 are £937,000 (2021/22: £1,364,000).

Restricted income must be used for the specifi c purpose for which it was donated and the balance at 30 June 2023 includes:

Successful Earthquake Homes and hardship grants appeal for use in 2023/24: £148,000

Water appeal (May 23) for use in 2023/24: £237,000

School projects programmed over two years: £54,000

Medical camps for use in 2023/24: £45,000

Purchase of motorbikes in 2023/24: £12,000

Support Costs MOD for use in 2023/24: £354,000

CONSTRUCTIVE OBLIGATION: The liability at 30 June 2023 is £35,456,000 (2021/22: £39,300,000)

When a charity has created a valid expectation through past practice that it will meet a liability the Charity Commission requires it to recognise the liability on the balance sheet as a constructive obligation. The Trust considers that a constructive obligation has been created for the payment of the Welfare Pensions and the disability support grants. Based on WP and DSG benefi ciary numbers at 30 June 2023 and key assumptions including: 35 new WP joiners for each of the next fi ve years (average age 73), agreed increases in rates payable, extended mortality rates, long-term infl ation at 7% and a discount rate at 7%. The actuarial calculation at 30 June 2023 ROE is £35,456,000; a decrease of £3,844,000 from June 2022, refl ecting an above infl ation uplif in the monthly allowance, off set by a signifi cant rise in the rate of exchange at the yearend between the Nepalese Rupee and Sterling.

RESERVES POLICY

When set ing the Trust’s Reserve Policy the Board takes into account the key risks facing the Trust in delivering its key activities, in addition to funding for the Designated Funds and Constructive Obligation referenced above. These considerations include the following mat ers:

The Trust’s clear and long-term objective of supporting the Welfare Pensioners in their declining years including the provision of welfare and medical support.

Essential provision for a period of readjustment for those in receipt of welfare support if the Trust

should ever be required to reduce or cease its activities, for whatever reason.

The Trust’s requirement to respond promptly and appropriately to new and unforeseen needs or challenges that might aff ect the way in which welfare support is delivered. Trustees specifi cally note the Trust carries out its welfare activities in a country where there are not only geophysical dangers such as earthquakes but also political, social and economic uncertainties. In addition, to deliver welfare support, the Trust depends on a number of partners whose support in the future is not guaranteed.

The impact of adverse changes to the rate of exchange between Sterling and the Nepali Rupee (NPR).

Economic adversity, as despite a strong supporter base, there is no guarantee that recent levels of income will be matched in the future or volatility in global markets with investments/assets failing to maintain their value.

If any of these uncertainties materialise, either singularly or in combination, the fi nancial eff ects can be signifi cant with movements of several million pounds.

Following the COVID pandemic and initial global supply challenges, exacerbated by the war in Ukraine, the Trust has faced a number of economic challenges. Rising infl ation rates in both Nepal and the UK have seen costs increase, together with pressure on fundraising income. Global markets have been volatile – for example, whilst there was a net unrealised gain of £0.5M in investment valuations at 30 June 2023, in the subsequent period of July – October 2023, we have experienced a loss of £4.1M. If this had arisen just four months earlier, it would have broadly eliminated the net movement on funds of £4.4M for 2022/23 and reduced reserves by £4.1M.

The political uncertainty in the UK in autumn 2022 saw the Rate of Exchange between Sterling and the Nepal Rupee fall by over 9% from the rate at 1 July 2022. If low rates had endured for the remainder of the fi nancial year, the Trust would have either incurred additional costs of £1.5M - £2.0M or faced the diffi cult decision to reduce charitable activity.

There is a signifi cant risk of natural disaster in Nepal - either during the monsoon season with major landslips or as a result of earthquakes. Through

27 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

our planned programme of Earthquake resilient homes for our most vulnerable pensioners, the retrofit programme for the Area Welfare Centres and our community Disaster Response stores, the Trust seeks to mitigate the risks where practicable. In the recent earthquake in November in rural western Nepal, unfortunately the older traditionally constructed buildings suffered the most damage. In response to this unpredictable risk, we established the Designated Disaster Response reserve.

Given the above and the vital and unique nature of our work in Nepal, Trustees consider that the Trust ideally requires free reserves equivalent to 18 months of standard expenditure not covered by other provisions, which is approximately £31,466,000. This level of reserve will enable the Trust to adjust its infrastructure and respond quickly to any of these risks. The Reserve Policy seeks to maintain charitable activity and provide stability to our financial planning. It is reviewed annually during the budget seting process, taking account of current and future risks and the economic climate, both in the UK and Nepal, and consequential impact on the Trust’s investment portfolio.

Afer taking the Constructive Obligation into account the Trust has total funds of £58,332,000 (2021/22: £53,899,000), however, the free reserves which are available in response to unforeseen

challenges, and exclude tangible fixed assets, designated and restricted funds amount to £37,714,000 (2021/22: £31,828,000). This represents 120% of the minimum level of reserves deemed appropriate by the Trustees. With financial uncertainty anticipated for at least a further 12 – 24 months, this level of free reserves has enabled Trustees to agree a budget for 2023/24 and early planning for 2024/25 and maintain current levels of charitable activity.

COSTS AND LIABILITIES

For every 1% fall in ROE

----- Start of picture text -----
£0.4M
£0.2M
----- End of picture text -----

Increase in Increase in costs liabilities

The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 28

OUR PEOPLE AND CULTURE

The Trust was established by Trust deed in November 1969 for the relief of hardship and

distress among Gurkha exservicemen of the British Crown and their dependants. It was reconstituted, also by trust deed, in 1994. In April 2004 the Trust became a Charitable Company Limited by Guarantee (CCLG). These accounts amalgamate those of the unincorporated trust in compliance with the Charity Commission’s uniting direction.

The development and execution of Trust policies is the responsibility of a Board of Trustees that meets three times each year. Their agenda is supported by a number of subordinate commit ees that consider investment, governance, audit and fi nance mat ers. The Board of Trustees are responsible for set ing the strategic aims of the Trust.

The Finance Commit ee, a sub-commit ee of the Board with approval to make decisions on the

Board’s behalf is, among other responsibilities, tasked with set ing salary levels of key personnel. In set ing these salary levels consideration is given to benchmarking with equivalent roles in the wider industry.

TRUSTEE SELECTION

The Governance commit ee, currently comprising a Chairwoman and two Trustee-Directors, is responsible for oversight of Trustee selection.

In accordance with Charity Commission guidance on Trustee tenure, there is a steady turnover of Trustees. When a vacancy arises, a specialist recruitment organisation is engaged to invite suitably qualifi ed candidates which are then shortlisted by a GWT selection panel and the fi nal candidate selected by panel interview. The appointment is then reviewed and confi rmed by the Board. All Trustees follow a generic training package to induct them into the work of the Trust and further role-specifi c training is sought for those

29 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

that require it. This also includes visiting our infrastructure and work in Nepal.

This process of Trustee recruitment has been further defi ned and clarifi ed with regard to Independent Trustee-Directors by the Chair of the Governance commit ee in line with the Charity Commission’s view that:

“The Board has a key impact on whether a charity thrives. The tone of the Board sets through its leadership, behaviour, culture and overall performance is critical to the charity’s success. It is important to have a rigorous approach to trustee recruitment, performance and development, and to the Board’s conduct. In an eff ective team, Board members feel it is safe to suggest, question and challenge ideas and address, rather than avoid, diffi cult topics.”

We bid farewell to Cathy Turner who moves on to pastures new af er 7 years as a Trustee-Director. Her role was advertised through Nurole and af er a selection process and interviews with shortlisted candidates, Ms Ranjani Kearsley was selected. Ranjani brings with her a wealth of experience which will further enhance the expertise of not just the Audit and Finance commit ees, on which she will be a member but also at Board level.

Details of Trustee retirements and recruitment may be found on page 1.

MANAGEMENT PERSONNEL

The Trust’s CEO is responsible for the day-to-day operation of the Trust. He directs and coordinates the work of the Salisbury headquarters and oversees the work of the Gurkha Welfare Trust (Nepal) and the Gurkha Welfare Advice Centres.

The Director of the GWT(N) provides assurance on authority, responsibility and accountability for the delivery of welfare support in Nepal in accordance with Trust policies, as well as insight into the political dynamics of Nepal. In addition, he acts as an interface between the Trust and the veteran community in Nepal.

The Field Director of the GWT(N) in Nepal is responsible for daily operational management of the GWT(N) and implementing welfare support in accordance with Trust policies.

MEET THE TEAM: SANO SUPPORTS OUR VULNERABLE PENSIONERS

For over three years, Sano Babu Katwal has worked as one of our Mobile Health Practitioners, travelling to the most remote regions of Nepal to deliver vital healthcare and medicines to Gurkha veterans and widows. Travelling with our Welfare offi cers, the team also deliver their monthly pension, which allows them to aff ord the food, fuel and clothing they need to live with dignity.

Sano Babu completed his certifi cate degree in General Medicine in 2016 at Biratnagar, and then worked at the National Academy of Medical Sciences in Kathmandu.

He went on to work with several diff erent NGOs before joining our team in January 2020.

“I applied for this role with the GWT because of its strong reputation for values and standards in Nepal,” Sano said. “The GWT is doing a very good job in Nepal compared to other organisations. Also, I love working with the elderly, so I was thrilled to join the Trust.

“Our excursions in the hills can take a couple of days, and sometimes we stay in hotels or tents. When we arrive at pensioners’ homes, we fi rst do greetings and then we begin by checking their vitals and handing over their medicines. During our home visits, the veterans and widows express their gratitude to the GWT.

“I once travelled for 10 hours on an unpaved path by motorbike, and then walked for two more hours uphill to reach a single pensioner.

“I really enjoy visiting the homes of elderly Bajes/ Bojus (grandfathers/grandmothers) to deliver medicines, medical facilities and fi nancial support. The smiles on their faces af er we visit their homes brings me happiness.”

The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 30

OUR STAFF IN NEPAL

Medical Welfare Finance Support Community

LOCATION STAFF
NUMBERS
Bheri 7
Baglung 4
Gulmi 6
Kaski 59
Lamjung 6
Gorkha 6
Syangja 8
Tanahun 9
Chitwan 15
Butwal 29
Bagmati 42
Rumjatar 6
Diktel 6
Bhojpur 7
Khandbari 6
Teherathum 6
Taplejung 6
Phidm 7
Dharan 60
Darjeeling 9
Damak 26
Singpoly 4
Pokhara 77
RWEPP 115

OUR VALUES

TRUST

TRANSPARENCY

TEAM WORK

EXCELLENCE

COMPASSION

At GWT (N), we build a culture of ‘trust’ by consistently creating a work environment that values respect, collaboration, inclusivity, honesty, integrity, fairness, confidentiality and effective communication.

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At GWT (N), we ensure At GWT (N), we foster transparency by open teamwork by clearly decision making, seting defining common goals, clear targets and objectives, providing resources and consistent performance high support, regular, management, providing clear communication, and learning from constructive resolution honest feedback, equal of conflicts, celebrating opportunities and by being achievements and effective accountable for our actions. collaboration.

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At GWT (N), we pursue excellence by seting high standards, encouraging innovation, continuous improvement, developing staff potential and by optimising resources to ensure the best possible outcomes for our

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At GWT (N), we promote compassion by safeguarding, treating staff, beneficiaries and others with kindness, care, empathy and dignity.

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GWT (N) df xfdL ;/Iff k|bfg ub}{ ;Dk0f{ sd{rf/L, ;]jfu|fxL / ;a}nfO{ bof / ;]jfsf] efjgf ;lxt ;xfg eltkj{s dof{lbt Jojxf/ u/]/ ‘ s?0ffefj ’ nfO{ k|j4{g ub{5f}+.

31 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

OUR AMBASSADORS

Our Ambassadors work in partnership with us to help widen our appeal, reach new audiences, and promote our cause.

HARI BUDHA MAGAR

Hari is a Nepalese double above knee amputee and record-breaking mountaineer. In 2017, Hari climbed Mera Peak, becoming the fi rst double above knee amputee to summit a mountain taller than 6,000m. Hari was born in a remote village in Western Nepal. He joined the British Army at the age of 19 and served for 15 years with the Royal Gurkha Rifl es. Hari was injured in Afghanistan in 2010, sustained multiple injuries and lost both of his legs above the knee. Hari dedicates his life to raising awareness of disability and inspiring others to conquer their dreams.

JOHNNY FENN

Johnny is a former British Army Offi cer with 25 years of service, including 16 years with the Brigade of Gurkhas. His Gurkha service took him to East Timor and Iraq, before being posted back to the UK as Deputy Chief of Staff for the Brigade of Gurkhas. On promotion to Lieutenant Colonel, Johnny was appointed British Military Advisor to ECOWAS in Nigeria, before completing his military service as the Field Director of The Gurkha Welfare Trust in Pokhara, Nepal. He is now a professional photographer and explorer, and he has travelled the globe on photographic adventures.

MIRA RAI

Mira Rai is a Nepali high altitude trail runner. Her fi rst road running race was in the Kathmandu valley, during which she realised that longdistance running was her metier. Finding her footing in ultra-trail running, she won many races and quickly rose to fame as a record-breaking national hero, participating in international events throughout the world. Mira continues her racing career today and organises her own trail races throughout Nepal. She is an inspiration to countless young aspiring athletes across Nepal. In April 2023 she was presented with the Prabal Jana Sewa Shree, one of Nepal’s highest civilian awards in recognition of her contribution to the country.

The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 32

OUR STAFF IN UK

VOLUNTEERS

The Trust is again grateful for the support of its volunteers in-year, the majority of whom take the form of community fundraisers - hosting various initiatives among their own communities to raise funds for our work.

We also work with volunteers on our events, primarily the Doko Challenge events which took place in Wimbledon and Leeds this year. We are also grateful to the Oxfam volunteers and GWT volunteers who help with Trailwalker each year, manning checkpoints, cheering people on and assisting with logistics.

Without their donation of time and hard work these events would not be possible.

EQUALITY, DIVERSITY AND INCLUSION

The Trust is commited to promoting and supporting diversity through the creation of an environment in which individuals are treated on the sole basis of their relevant merits and abilities. All staff and trustees share this commitment. The Trust will not tolerate any discrimination or behaviour towards an individual in respect of age, disability, race, religion, gender or sexual orientation, which are offensive, discriminatory or hostile towards the individual.

Through the provision of reasonable adjustments within the workplace, the Trust seeks to maximise the talent and opportunities for both potential and current employees. Arrangements will be made, wherever possible, for retraining employees to enable them to perform work identified as appropriate to their aptitude and ability.

The Trust complies with all UK legislation and applies this as best practice in Nepal wherever practicable, in accordance with Nepal statutory regulations.

SAFEGUARDING

The Trust operates a zero-tolerance approach to dealing with safeguarding issues for all staff, contractors, visitors and beneficiaries, regardless of location. As an organisation, we strive to maintain an environment that is free from harassment, abuse and mistreatment in all of our operations and activities.

This approach is reinforced through regular training, both during initial induction training and thereafer with annual Individual Continuous Training (ICT) combined with regular briefings to beneficiaries and communities. The Policy is visibly displayed across all locations and is regularly reminded to Line Mangers, Safeguarding leads and all staff whether on training serials or visits. This is all based on a robust safeguarding policy which is regularly reviewed.

The policy aims to:

33 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

volunteers, whether the alleged harm has taken place on GWT premises or not.

GWT’s Safeguarding Policy also seeks to effectively manage the risks associated with activities and events involving vulnerable beneficiaries through:

The Assurance of the understanding and implementation of the GWT Safeguarding Policy is led by the Head of Assurance, however the GWT Board and the Executive are also closely involved in monitoring the level of knowledge by all staff and beneficiaries. There is also a dedicated TrusteeDirector as the Safeguarding lead on the GWT Board who conducts at least two visits to Nepal each year. In 2023 further actions have included all Safeguarding roles being explicitly writen into Job Descriptions and records formally being kept of all Safeguarding training. There is also now a designated Safeguarding lead on Sexual Violence and Harassment.

ENVIRONMENTAL MATTERS

The Trust is commited to minimising the impact that its processes have on the environment and to providing a safe working environment for our employees.

In accordance with the UK Government’s Streamlined Energy & Carbon Reporting policy, the Trust is a low energy consumer in the UK and is therefore exempt from providing detailed energy consumption disclosures.

In the UK, we continue to ensure that our fundraising materials are produced from sustainable and recycled materials and that our events seek to minimise the use of plastics. For the Trailwalker event in 2023 the Trust is aiming for no single-use plastics. Items the Trust sells at retail are sourced as locally as costs allow. We have also recently

introduced a new webexpenses system, reducing the use of paper within the office.

In Nepal, the Trust seeks to reduce its environmental footprint in a number of ways. The use of solar panels in both the HQ and across our AWC network helps mitigate energy consumption. Travel by vehicle and domestic airlines has been reduced through the greater use of online conference and communication facilities as a direct result of the digitisation of our welfare network.

Equally, the procurement of materials and labour close to project sites minimises the Trust’s overall carbon footprint reducing airmiles and vehicle miles as well as supporting local economies.

TRAINING

The Trust is commited to ensuring that staff are properly trained for their roles as well as helping maintain motivation and supporting continued professional development.

In the UK there are generous training budgets assigned to each staff member who are encouraged to maximise use of them to hone their expertise and stay abreast of current sector trends and best practices.

In Nepal the same importance is placed on training - though more ofen in a group seting owing to the amount of staff. Team building and training events took places regularly across the year, particularly within the RWEPP and Medical teams.

Given the remote nature of their work, a Train the Trainer approach is ofen favoured, allowing particular staff members to learn skills and return to their AWC to pass the learning on.

The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 34

OUR POLICIES AND DISCLOSURES

RISKS

All activities are subject to regular risk review by the Board of Trustees. Major risks are, for this purpose, those that could have a significant effect on:

The Trustees review all risks on an ongoing basis and satisfy themselves that adequate procedures are in place to minimise and manage the risks identified. Where possible and appropriate, risks are covered by insurance.

The Trust’s financial Reserves policy is assessed and set at a level which enables the Trust to help manage its risks.

OUR PRINCIPAL RISKS AND UNCERTAINTIES

a. Operational Risks

All key risks appear in the Trust’s Risk Register and include operational risks. The key risks are identified as:

time. Agreement has been received for additional funding for medical services, reflecting increased costs and usage.

b. Financial Risks

The Trust faces a number of key financial risks. The Trustees consider that the following summarises those financial risks and their responses to them:

35 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

INVESTMENT POLICY AND PERFORMANCE

The Trust meets the key challenges of short-term liquidity, cash flow flexibility and long-term capital growth by holding cash in a short-term portfolio while spliting investments between mediumterm and long-term portfolios. In addition, there is a strategic portfolio invested in alternative investments and global smaller companies. The purpose of the two main investment portfolios is to delineate the Trust’s requirements between monies that are held as an immediate reserve to cover cash flow requirements (c. 18 months) and truly longterm monies that can weather capital volatility over a 5-7 year investment time horizon.

The medium term portfolio seeks a return that is beter than SONIA (Sterling Overnight Index Average) and over the past 12 months to 30 June 2023 delivered 2.2% compared to 3.2% for the benchmark.

The long-term portfolio seeks a return that is beter than both a composite benchmark and an inflation target of CPI + 4%; over the past 12 months, the long-term portfolio returned 3.2% compared to 7.7% for the benchmark, whilst in the strategic portfolio, the alternatives portion returned -6.7% compared to

10.2% for the benchmark (SONIA + 2% from January 2023) and the smaller companies portion returned 4.7% compared to 7.0% for the benchmark. Whilst both portfolios under-performed their inflation plus targets this year they remain ahead of their benchmarks over the longer-term and are wellpositioned to benefit from global economic trends in the future.

Investment Risk – the risks & how do we mitigate these through our investment strategy?

Investment risk covers a variety of areas and the Investment Commitee, on behalf of the Trustees, regularly reviews counterparty, custody, capital loss, market, liquidity, regulatory and sustainability risks as well as the investment process of the Trust’s fund manager to ensure that all industry safeguards are in place. The Investment Commitee has guarded against two key areas of risk.

The first risk is loss of capital and hence our decision to invest in a well-diversified global portfolio across different asset classes to reduce the risk of loss from a single investment or strategy. To minimise volatility risk, we also aim to protect investments from sudden variations in market movements by balancing levels of risk and return between shortterm, medium-term and long-term portfolios.

The second area is currency risk as the Trust’s fundraising activities and the MOD’s grant in aid are made in a different currency (Sterling) to the recipient beneficiaries (Nepali Rupee – NPR). It is difficult to mitigate this risk as there are few investments that can be made in Nepal and the NPR has been in steady decline against Sterling over the past 25 years. The solution has been to keep some short-term monies in Nepal in NPR, have some exposure to the US Dollar in the medium-term portfolio and to have a large weighting of global equities in the long-term portfolio.

Increasing exposure to global equities has provided access to a wider and more diversified investment universe that historically has enhanced returns and reduced the concentration risk more prevalent in UK domestic indices. It has enabled our fund manager to invest in global themes such as digitalisation, automation, climate change, ageing demographics and evolving consumption that are increasingly relevant in a post-COVID world. Sustainability lies at the heart of our fund manager’s investment process ensuring that environmental, social and governance (ESG) risks are also monitored and minimised.

The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 36

DIRECTOR’S STATEMENTS

Going concern

The Trust has undertaken a robust assessment of the continued global economic effects following the pandemic and the effects of the war in Ukraine, and the impact on the ability of the Trust to operate as a Going Concern.

When agreeing the budget for 2023/24, Trustees have been able to draw on the evidence of fundraising performance during 2022/23 in which fundraising income remained stable and maintain levels of charitable activity. When assessing the required level of reserves, Trustees have maintained the optimal level of free reserves at 18 months of routine expenditure to reflect continued economic uncertainty.

The Trust has applied a sensitivity assessment to future income projections and the investment portfolio, to understand the extent to which reductions can be managed without impacting on long term commitments and the ability to deliver charitable activities to our beneficiaries. Financial performance is scrutinised on a regular basis by the Finance Commitee and the Main Board so that any shortfall in income will be identified to Trustees in a timely manner.

Trustees have concluded that the Trust remains in a strong financial position and operates as a Going Concern.

ADDITIONAL POLICIES

The Trust is commited to sustainable development, meeting the needs of our beneficiaries without compromising the ability of future generations to meet their own requirements and this is a guiding principle within our work in Nepal. Concern for the environment is an integral and fundamental part of this commitment and our aim is to reduce the impact of our operations on the environment. This aim is promulgated through the Environmental Policy.

Statement of how directors have complied with their duties to have regard to maters in Section 172(1) of the Companies Act 2006.

A director of a company must act in a way he/she considers, in good faith, would be the most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard to the following maters:

(a) The likely consequences of any decision in the long-term: The Trust’s future work is defined through a five-year Strategy Review; the current review period runs to 2025 having been endorsed by Trustees on 16 September 2020.

(b) The interests of the company’s employees: Our employees are our key asset and Trustees are commited to promoting a highly motivated workforce through inclusion in the workplace, promoting and supporting training and development opportunities and supporting their physical and mental wellbeing. In Nepal, regular staff surveys are undertaken, and a Staff Council has been introduced to enhance communication.

(c) The need to foster the company’s business relationships with suppliers, customers and others: The Trust seeks to manage its relationships with suppliers in an open and transparent way, ensuring there is fairness in all aspects of the tender process. At a local level in Nepal the Trust liaises with local authorities and federal Governmental structures through our Welfare Officers located around the country. From a Strategic perspective the Trust’s relationship with the Government of Nepal centres on the annual Brigade of Gurkhas Welfare Coordination Commitee (BGWCC) which endorses the Trust’s work and provides our license to operate.

(d) The impact of the company’s operations on the community and environment: The Trust’s work is intrinsically linked with local communities, and our network of Welfare Officers work closely with local administrations. Our long-term partnership with FCDO has improved the lives of hundreds of communities through the provision of potable water and sanitation.

(e) The desirability of the company maintaining a reputation for high standards of business conduct: Trustees seek to maintain the reputation and esteem in which the Trust is held by both beneficiaries and supporters, through openness and clarity in our objectives and deliverables and ensuring that

37 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

maximum benefit reaches our core beneficiaries enabling them to “Live with Dignity”. There is a robust governance structure with commitees and Trustees meeting on a regular basis.

(f) The need to act fairly as between members

of the company: Trustees expect all within the Trust to uphold the highest standards and be seen as an exemplar to other similar organisations. To support consistent standards the Trust has a Values & Standards document, a Competency Framework, Appraisal Reporting policy and procedures and a Discipline policy and procedures within GWT(N) Standing Instructions, Staff Handbook and TACOS.

Statement summarising how directors have engaged with suppliers, customers and others in a business relationship with the company.

The Trust assesses the need of its beneficiaries through a Pensioner Risk Assessment, from which a Pensioner Care Plan is developed by our Welfare Officers and medical staff. The plans are regularly reviewed to ensure that the level of care is appropriate, and our Internal Audit and Assurance programmes assess the level of compliance and achievement.

The long-term grant arrangement with FCDO for the provision of potable water and sanitation is based on an agreed target and annual assessment of performance. This has led to the programme achieving an A or A+ rating with a low risk rating each year since grading was introduced in 2012. Dir GWT(N) has the lead for the senior management of the relationship with FCDO staff based at the British Embassy; day to day management of the programme is invested in the RWEPP Programme Director.

The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 38

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

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

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to:

for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable group’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

So far as each of the Trustees is aware at the time the report is approved:

This Trustees’ Report incorporating the Strategic Report was approved and authorised for issue by the Board of Trustees on 14 December 2023 and signed on its behalf by:

Lieutenant General R Wardlaw OBE Chairman

Original signed and dated 14 December 2023

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company and the group’s transactions, disclose with reasonable accuracy at any time the financial position of the charitable group and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the charitable company’s constitution.

They are also responsible for safeguarding the assets of the charitable company and the group and hence

39 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE GURKHA WELFARE TRUST

OPINION

We have audited the financial statements of The Gurkha Welfare Trust (‘the charitable company’) and its subsidiaries (‘the group’) for the year ended 30 June 2023 which comprise Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Consolidated Statement of Cash Flows, and notes to the financial statements, including significant accounting policies. 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).

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 group 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.

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 or the group’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 contained within the annual report. 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.

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 this gives rise to a material misstatement in the financial statements themselves. 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.

OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

CONCLUSIONS RELATING TO GOING CONCERN

In auditing the financial statements, we have concluded that the trustee’s use of the going concern basis of accounting in the preparation of

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

The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 40

for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

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

We have nothing to report in respect of the following maters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the trustees’ responsibilities statement set out on page 39, 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, maters 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

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

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.

EXTENT TO WHICH THE AUDIT WAS CONSIDERED CAPABLE OF DETECTING IRREGULARITIES, INCLUDING FRAUD

Irregularities, including fraud, are instances of noncompliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members including internal specialists and significant component audit teams. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

41 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation (GDPR), Health and safety legislation, employment law, and Anti-fraud, bribery and corruption legislation. We also considered compliance with local legislation for the group’s overseas operations.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income, welfare pension payments and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, internal audit, component auditors and the Audit Commitee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, designing audit procedures to test the timing of income and welfare pension payments, reviewing of component auditor working papers, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed noncompliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the

override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

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. Our audit work has been undertaken so that we might state to the charitable company’s members those maters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permited 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.

Tara Westcot Senior Statutory Auditor

For and on behalf of

Crowe U.K. LLP Statutory Auditor St James House St James Square Cheltenham GL50 3PR

Original signed and dated 15 December 2023

The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 42

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 JUNE 2023

(incorporates the consolidated income and expenditure account)

Notes
Income from:
3
Donations and legacies
Donations
3a
Legacies
3b
Grants
Ministry of Defence
3c
Charitable activities
3d
Ministry of Defence
Foreign, Commonwealth and
Development Ofce
Medical Services
Other trading activities
Fundraising Events
3e
Retail
Investments
3f
Total
Expenditure on:
4
Raising funds
Fundraising
4f
Investment management costs
4f
Charitable activities
Individual aid
4a
Medical Aid
4b
Disaster response
4d
Residential Homes
4c
Community aid
4e
Sub Total Expenditure
Movement in constructive obligation
4g/14
Total
Net income/(expenditure) before other
gains and losses
Other gains and losses
Net gains/(losses) on investments
9
Net income/(expenditure)
Transfers between funds
17&18
Other recognised gains/(losses)
Proft & loss revaluation (loss)/gain
Net Movement in Funds
Reconciliation of funds
Funds brought forward
Total Funds Carried Forward		 Unrestricted
Restricted
General
Designated
£000
£000
£000
4,602
0
1,835
6,657
0
0
0
0
3,335
0
0
2,750
0
0
1,746
0
0
395
467
0
86
23
0
0
2,703
0
0
14,452
0
10,147
2,488
0
0
355
0
0
4,576
29
3,526
5,853
18
3,462
0
0
0
0
463
10
476
0
3,188
13,748
510
10,186
(3,844)
0
0
9,904
510
10,186
4,548
(510)
(39)
473
0
0
5,021
(510)
(39)
1,027
(639)
(388)
6,048
(1,149)
(427)
(39)
0
0
6,009
(1,149)
(427)
32,907
19,628
1,364
38,916
18,479
937		 2022-23
Total
£000
6,437
6,657
3,335
2,750
1,746
395
553
23
2,703
24,599
2,488
355
8,131
9,333
0
473
3,664
24,444
(3,844)
20,600
3,999
473
4,472
0
4,472
(39)
4,433
53,899
58,332		 2021-22
Total
£000
6,993
7,997
3,325
2,525
1,933
0
670
24
2,045
25,512
2,262
372
7,253
7,559
49
468
4,742
22,705
1,662
24,367
1,145
(4,254)
(3,109)
0
(3,109)
41
(3,068)
56,967
53,899

43 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

NOTES

There are no other gains and losses other than those shown above.

All the Trust’s activities are derived from continuing activities.

Profit for Companies Act purposes (before unrealised gains and losses) is: £4,001,000 including movement in constructive obligation (2021/22: £1,497,000).

Net Income/(expenditure) before movement in constructive obligation: £155,000 (2021/22: £2,807,000).

The notes on pages 47 to 72 form part of these accounts.

The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 44

CONSOLIDATED AND CHARITY BALANCE SHEET AT 30 JUNE 2023

Company registration number 05098581

Notes
Fixed assets:
Intangible assets
7
Tangible assets
8
Investments
9
Total fxed assets
Current assets
Medication, project & trading stock
Debtors
10
Cash at bank and in hand
Total current assets
Liabilities
Creditors: amounts falling due within one year
11
Provisions for liabilities falling due within one year
Constructive Obligation
14
Net current assets or liabilities
Provisions for liabilities falling due afer more than
one year
Constructive Obligation
14
Total net assets or liabilities
Funds:
Restricted funds
18
Unrestricted funds
General
Welfare pension reserve
Net General funds
17
Designated
17
Unrestricted funds afer provision for liabilities and
charges
Total funds		 Group
2023
2022
£000
£000
81
155
1,939
1,842
82,342
81,433
84,362
83,430
506
371
1,891
2,106
8,562
8,212
10,959
10,689
(1,533)
(920)
(3,867)
(3,989)
5,559
5,780
(31,589)
(35,311)
58,332
53,899
937
1,364
74,372
72,207
(35,456)
(39,300)
38,916
32,907
18,479
19,628
57,395
52,535
58,332
53,899		 Charity
2023
2022
£000
£000
81
151
1,348
1,277
82,342
81,433
83,771
82,861
494
363
1,890
2,106
8,381
8,166
10,765
10,635
(1,475)
(918)
(3,867)
(3,989)
5,423
5,728
(31,589)
(35,311)
57,605
53,278
937
1,364
73,645
71,586
(35,456)
(39,300)
38,189
32,286
18,479
19,628
56,668
51,914
57,605
53,278		 Charity
2023
2022
£000
£000
81
151
1,348
1,277
82,342
81,433
83,771
82,861
494
363
1,890
2,106
8,381
8,166
10,765
10,635
(1,475)
(918)
(3,867)
(3,989)
5,423
5,728
(31,589)
(35,311)
57,605
53,278
937
1,364
73,645
71,586
(35,456)
(39,300)
38,189
32,286
18,479
19,628
56,668
51,914
57,605
53,278
82,861
363
2,106
8,166
10,635
(918)
(3,989)
5,728
(35,311)
53,278
1,364
71,586
(39,300)
32,286
19,628
51,914
53,278

NOTES

The net income for the Trust for the year ended 30 June 2023 was £4,472,000 (2022: expenditure £3,109,000). The net income for the Charity for the year ended 30 June 2023 was £4,327,000 (2022: expenditure £3,109,000). As permited by Section 408 of the Companies Act 2006, no separate Statement of Funds or Income and Expenditure account has been presented for the Charity only.

Approved and authorised for issue by the Board of Trustees on 14 December 2023 and signed on their behalf by:

Lieutenant General R Wardlaw OBE Chairman 14 December 2023

The notes on pages 47 to 72 form part of these accounts.

45 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2023

Notes
below
Cash fows from operating activities:
Net cash (used in)/provided by operating activities
Note A
Cash fows from investing activities:
Dividends and interest from investments
Purchase of Intangibles
Purchase of property, plant and equipment
Proceeds from sale of investments
Purchase of investments
Net cash provided by investing activities
Operating activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting
period
Note B
Cash and cash equivalents at the end of the reporting period
Note B
NOTES
A. Reconciliation of net income to net cashfow from
Net income/(expenditure) for the reporting period (as per SOFA)
Adjustments for:
Depreciation and amortisation
(Gains)/Losses on investments
Investments donated
Dividends and interest from investments
(Losses)/Gains on foreign exchange
(Increase)/Decrease in stocks
Decrease/(Increase) in debtors
Increase/(Decrease) in creditors
(Decrease)/Increase in constructive obligation
Net Cash (used in)/provided by operating activities
B. Analysis of cash and cash equivalents
Cash in hand and at bank
Notice deposits (less than 3 months)
Total cash and cash equivalents		 2022/23
£000
(1,541)
2,702
(20)
(401)
8,994
(6,560)
4,715
3,174
11,808
14,982
2022/23
£000
4,472
398
(473)
(45)
(2,703)
(39)
(135)
215
613
(3,844)
(1,541)
2022/23
£000
8,562
6,420
14,982		 2021/22
£000
7
2,045
(142)
(165)
77,287
(76,234)
2,791
2,798
9,010
11,808
2021/22
£000
(3,109)
385
4,254
(15)
(2,045)
41
40
(1,370)
164
1,662
7
2021/22
£000
8,212
3,596
11,808		 Cash fow
in year
£000
350
2,824
3,174

The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 46

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 2023

1. BASIS OF PREPARATION

Statement of compliance

The financial statements are prepared under the historical cost convention as modified to include the revaluation of investments at fair value. The format of the financial statements has been presented to comply with the Companies Act 2006 and FRS102 The Financial Reporting Standard applicable in the UK and Ireland and the Statement of Recommended Practice Accounting and Reporting by Charities (“SORP 2015 updated 2019”). The Charity is a Public Benefit Entity as defined by FRS102.

General information

The Charity is a private company limited by guarantee, incorporated in England and Wales (company number: 05098581) and a charity registered in England and Wales (charity number: 1103669). The Charity’s registered office address is:

P.O Box 2170, 22 Queen Street, Salisbury SP2 2EX

Basis of Consolidation

These financial statements consolidate the results, assets and liabilities of the Charity’s trading subsidiary, GWT Trading Limited, on a line by line basis. The statements also include consolidation of the Ex Servicemen and Families Support Society, a not for profit company registered in Nepal 2 July 2018 for the legal ownership of land assets purchased by GWT in Nepal.

The Charity’s own Statement of Financial Activities has not been presented, as permited by section 408 of the Companies Act 2006. The Charity’s net income for the year as an individual entity, afer movement in the constructive obligation and other recognised gains and losses was a surplus of £4,327,000 (2021/22: a deficit of £3,109,000).

When agreeing the budget for 2023/24, Trustees have been able to draw on the evidence of fundraising performance during 2022/23 in which fundraising income remained stable and maintain levels of charitable activity. When assessing the required level of reserves, Trustees have maintained the optimal level of free reserves at 18 months of routine expenditure to reflect continued economic uncertainty.

The Trust has applied a sensitivity assessment to future income projections and the investment portfolio, to understand the extent to which reductions can be managed without impacting on long term commitments and the ability to deliver charitable activities to our beneficiaries. Financial performance is scrutinised on a regular basis by the Finance Commitee and the Main Board and therefore any shortfall in income will be identified to Trustees in a timely manner.

Trustees have concluded that the Trust remains in a strong financial position and operates as a Going Concern.

Significant judgments and sources estimation uncertainty

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. The key judgements that have been applied by management relate to:

Going concern

The Trust has undertaken a robust assessment of the continued global economic challenges and their impact on the ability of the Trust to operate as a Going Concern.

47 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

The following principal accounting policies have been applied:

Income

Income is recognised when the charity has entitlement to the funds, any performance conditions atached 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.

Recognition of income is deferred where conditions specify that such income relates to future accounting periods. Where donors specify that funds are for specific purposes such income is included in incoming resources of restricted funds.

Donations. Income from donations, covenants and gif aid includes receipts from fundraising events. Donations, together with the resulting tax credit from gif aid, are credited directly to the statement of financial activities when received by the Trust. Donations and all other receipts (including capital receipts) from fundraising are reported gross and the related fundraising costs are reported in raising funds.

Gifs in Kind are recognised in respect of personnel funded by the Ministry of Defence in roles which would have to be replicated by the Trust. An equivalent cost is also reported within staff costs. Gifs in Kind are recognised in respect of donated goods either in support of fundraising activity or in direct support of the provision of charitable activity. An equivalent cost is also reported within the cost of fundraising or the appropriate cost of charitable activity.

Legacies are recognised and credited directly to the statement of financial activities based on the earlier of setlement of the estate and issue of Estate Accounts or receipt of payment.

Grant Income. Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions atached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income from other trading activities is recognised as earned as the related goods are provided.

Interest and Dividends Receivable. Investment income is recognised on a receivable basis and when the amounts can be measured reliably. Interest on funds on deposit is included when receivable upon notification by the relevant banking institutions. Dividends receivable on assets held for investment purposes are receivable upon notification by the relevant investment institutions.

Expenditure

All expenditure is included in accordance with the accruals concept. Any liabilities as a result of legal or constructive obligations commiting the Trust to expenditure have been included.

Cost of raising funds comprises costs directly atributable to fundraising and managing the investment portfolio. Charitable activity costs in the UK are incurred in running the Gurkha Welfare Advice Centre and in supporting the activities in Nepal. The costs of running the Trust’s office and staff costs have been allocated on a time spent and area occupied basis to raising funds and charitable activity.

Governance costs are apportioned on the same basis as the office and staff costs and are disclosed in the notes comprising audit and legal fees and the costs associated with constitutional and statutory requirements.

The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 48

Costs in Nepal have been allocated to the direct charitable activities. Direct costs include actual grants made, provision of medical services and costs related to people directly employed in delivering one of our charitable activities. Other direct costs such as staff costs and overheads of the Area Welfare Centres established for the delivery of more than one charitable activity are apportioned within support costs. Support costs also includes HQ staff and administrative overheads. Support and governance costs have been allocated to activity cost categories in a fair and appropriate method on a basis consistent with the use of resources by applying person days spent on the various activities or space occupied.

Grants payable to individuals may be subject to conditions. Expenditure on such performancerelated grants is recognised to the extent that the recipient has complied with the conditions.

Short term benefits including holiday pay are recognised as an expense in the period in which the service is received. Termination benefits are accounted for on an accrual basis and in line with FRS 102.

Taxation

Irrecoverable VAT is not separately analysed and is charged directly to the Statement of Financial Activities (SOFA) as part of the expenditure to which it relates.

Operating leases

Rental payments under operating leases are charged on a straight-line basis over the period of the lease.

Foreign currencies

Fixed assets in foreign currencies are converted to sterling at the exchange rate ruling at the time of purchase. Investments, current assets and liabilities in foreign currencies are converted into sterling at the exchange rate ruling at the balance sheet date. Transactions during the year in foreign currencies, mainly Nepalese rupees, are converted into sterling at the average rate of exchange for the month in which the transaction was undertaken. Exchange rate gains or losses are recorded as support costs to the activities to which they relate.

In the UK, the Trust makes contributions to employee individual defined contribution pension

plans up to a maximum of 10% of salary.

Following changes under the Labour Act of Nepal in 2017 and the creation of the Social Security Fund (SSF) of Nepal, GWT enrolled with the scheme with contributions at a rate of 31% of staff salary; 20% employer contribution and 11% employee contribution.

The Provident Fund and Gratuity Fund previously managed on behalf of staff by GWT, was closed to all Nepal-based staff in 2021-22, with staff being given the option of either withdrawing funds or transferring to the SSF. As at 30 June 2023, the only funds remaining with Standard Chartered Bank Nepal Limited are in respect of the eight staff in Darjeeling who are not eligible to join the SSF.

Contributions for staff in both UK and Nepal are charged to the SOFA on the basis of amounts provided for the period.

Fund accounting

Funds held by the Trust are either:

Unrestricted general funds – these are funds, which can be used in accordance with the charitable objects at the discretion of the Trustees.

Designated funds – these are funds set aside by the Trustees out of unrestricted (general) funds for specific purposes.

Restricted funds – these are unspent funds that can only be used for particular restricted purposes within the objects of the Trust. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of each fund is included in the

Provisions

Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to setle the obligation; and the amount of the obligation can be estimated reliably.

Where there are a number of similar obligations, the likelihood that an outflow will be required in setlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations might be small. In particular:

49 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

Computers and sofware 33.33% per annum on a straight-line basis.

For all depreciable assets, a full year’s depreciation is charged in the year of acquisition or completion and no depreciation is charged in the year of disposal.

Stocks

Investments

Listed investments are stated in the balance sheet at fair value. All movements in value arising from investment changes and revaluations are included in the Statement of Financial Activities (SOFA).

The stocks of medication, project materials and bought-in goods for sale are valued at the lower of cost and net realisable value on a first in first out basis.

Financial Instruments

Fixed assets

The cost of minor additions or acquisitions of fixed assets under £5,000 is charged wholly to the SOFA in the year of purchase. Fixed assets above this amount are capitalised in the financial statements at cost. Donated fixed assets are brought into account at an estimate of their market value at the time of acquisition. Land, beneficially owned by the Trust, is valued at historical cost and is not depreciated.

Intangible Assets: Sofware which is considered as an asset in its own right, is disclosed as an intangible asset.

Tangible Assets: Sofware which is an integral function of enabling supporting hardware to function, is considered a part of the overall tangible

Amortisation

Basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable are accounted for on the following basis:

Cash and cash equivalents includes cash in hand, deposits held at banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafs. Bank overdrafs, when applicable, are shown within current liabilities.

Debtors and creditors are measured at the transaction price less any provision for impairment. Any losses arising from impairment are recognised as expenditure.

Bank borrowings. Liabilities for borrowings which are subject to a market rate of interest are measured at the value of the amount advanced, less capital repayments.

The costs of intangible fixed assets are amortised over the expected useful life of the assets. Amortisation rates are:

Sofware 33.33% per annum on a straight-line basis, in line with the related tangible asset useful economic life

Depreciation

Depreciation is provided on all tangible assets except land to write off the costs of the asset less any material residual value, by equal instalments over their expected useful lives. Depreciation rates are:

Completed buildings 10% per annum on a straight-line basis. Vehicles and equipment 25% per annum on a straight-line basis.

The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 50

  1. INCOME

Total income includes income transferred from the charitable trust “Gurkha Welfare Trust”, former charity number 1034080. The Trust is retained while it receives donations and legacy income.

a. Donations
Donations from individuals
Donations from companies, trusts, clubs and organisations
b. Legacies
c.
Grants
Ministry of Defence – to support operating costs in Nepal
d. Charitable Activities
Ministry of Defence – for medical services
FCDO – for water and sanitation projects in remote locations
Provision of medical services
e. Other trading activities
Fundraising events
Retail
f.
Investments
Investment dividends and interest
Bank interest		 2022/23
£0
5,179
1,258
6,437
6,657
3,335
2,750
1,746
395
553
23
2,257
446		 2021/22
£0
5,665
1,328
6,993
7,997
3,325
2,525
1,933
0
670
24
1,746
299

Donations from companies and organisations includes gifs in kind of £90,780 of which £83,700 represents the benefit of the Field Director who is a serving Army Officer employed by the Ministry of Defence. The benefit is determined as the cost which would be incurred if the Trust had to directly employ an equivalent position.

Future legacy income of £5,819,000 is expected in respect of legacies due which have been notified to the GWT.

51 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

4. EXPENDITURE

Grants Direct Support Costs Support Costs 2022/23 2021/22
Costs
Support Governance Totals Totals
£000 £000 £000 £000 £000 £000
**a. ** Individual Aid
Welfare pension 3,739 0 1,864 44 5,647 5,016
Care for the elderly 94 5 1 1 101 93
Disability support 220 0 125 3 348 284
Winter allowance 53 0 48 1 102 58
Welfare Grants & Support 708 108 460 10 1,286 1,208
UK welfare 250 374 4 19 647 594
Total individual aid 5,064 487 2,502 78 8,131 7,253
**b. ** Medical aid 2,862 5,209 1,179 83 9,333 7,559
c. Residential Homes 29 367 73 4 473 468
**d. ** Disaster Response 0 0 0 0 0 49
**e. ** Community aid
School projects 181 648 433 10 1,272 1,116
COVID support 0 7 0 0 7 77
Water projects 0 1,644 736 5 2,385 3,549
Total community aid 181 2,299 1,169 15 3,664 4,742
Sub Total Charitable activities 8,136 8,362 4,923 180 21,601 20,071
f. Cost of generating funds
Fundraising 0 1,895 518 75 2,488 2,262
Investments 0 337 16 2 355 372
Total costs of generating funds 0 2,232 534 77 2,843 2,634
Total Expenditure prior to movement 8,136 10,594 5,457 257 24,444 22,705
in Constructive Obligation
**g. ** Movement in Constructive 0 (3,844) 0 0 (3,844) 1,662
Obligation
Total Expenditure 8,136 6,750 5,457 257 20,600 24,367

UK Welfare includes a grant of £250,000 (2021/22: £250,000) paid to the Army Benevolent Fund for the support of former Gurkhas who have retired in the UK. All other grants totalling £8,136,000 (2021/22: £7,442,000) were to individuals or small community groups.

The number of grants issued to individuals or communities on the table below are recorded on a beneficiary database based on British Army records which is subject to independent audit in Nepal. All grants to individuals require proof of identity before issue and community grants are only arranged with approval from the local community council.

The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 52

Direct costs include the costs of employing staff who are engaged in the delivery of one charitable activity. Where staff are engaged in the delivery of more than one output their costs are included within Support costs and apportioned based on the average time spent. As a consequence the majority of the running costs of the Area Welfare Centres and their staff are included within Support Costs, whilst delivering front line services across a number of charitable activities. Support costs also include the apportioned costs of UK and Nepal HQs.

Activity Benefciaries Notes
Welfare
pensions:		 3,175 June 23 There were 3,453 recipients at the start of the year and 46 new recipients.
61 ceased due to their move to the UK. A detailed database of all welfare
pensioners is maintained based on data from British Army records.
Payments are made on a quarterly basis and require proof of identity.
Followingnet movements,there are3,175recipients at30June 2023.
Home Care: 300 We provided grants to 300 carers in support of the most vulnerable
benefciaries. Carers are provided with training in support of their
responsibilities.
Disability
Support:		 239 June 23 The number of recipients is 239 at 30 June 2023. This data is held on the
same database as the welfare pensioners and is subject to both proof
of identity and medical requirement. In addition there are 28 siblings in
receipt of a reducedgrant.
Winter
allowance:		 ~4,000 All welfare pensioners, wives, DSG recipients and residential home
residents supported last December received a GWT branded Rice Cooker.
Welfare
(Hardship)
grants:		 1,357 These grants were awarded for cases of special need not covered by the
other awards. Each grant is individually assessed and approved by a senior
member of staf. For 22-23 this included 73 earthquake resilient houses.
A further 7 replacement homes/signifcant repairs were funded from the
Disaster Reserve following severe damage from storms and monsoon
landslips. 954 welfare grants were awarded to benefciaries, relieving
hardship and improving the quality of their lives. 12 rainwater harvesting
projects for theprovision of drinkingwater for isolated benefciaries.
Residential and
Rehabilitation
care:		 36 permanent
residents		 Our 2 Residential Homes have a capacity of 48 including respite care and
rehabilitation. There were 36 permanent residents at the 30 June 2023.
Over 25 benefciaries supported through rehabilitation services at the
Residential Homes and over 810 home visits byrehabilitation therapists.
Medical Services Over 21,300
accessing
Primary
Medical Care		 Over 21,300 benefciaries accessed Primary Medical Care services through
GWT Medical Centres. Over 210 patients were supported in palliative care
either in their own home or at our Residential Homes. More than 100
patients supported in their homes through the provision of medical aids
including hospital beds and oxygen concentrators. ~2,200 treated over 4
rural communitymedical camps.
School projects: 100 (projects) Communities were assisted through the repair, extension or new build
of a school. Every project is arranged with and authorised by the local
community commitee and requires a community contribution. 2 major
builds, 5 major refurbishments, 17 minor extensions and 76 minor
refurbishmentprojects were completed in-year.
Rural Water
and Sanitation
projects:		 47 projects
(36, 112
households,
1,278
tapstands)		 36 major water and sanitation projects including 15 funded by FCDO
and 8 smaller projects to ensure all Welfare Pensioners have access to
potable water. 3 emergency repair projects funded by FCDO in response
to climate-induced damage. Dharan community project. Emergency
preparedness trainingdelivered to local communities.

Further information on the grants can be found in the Trustees’ Annual Report.

The total charitable activity expenditure of £21,601,000 represents 88% of total expenditure before the movement in the constructive obligation.

53 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

Analysis of Support Costs

a.Individual Aid
b.Medical Aid
c.Residential Homes
d.Community Aid
e.Fundraising
f.Investment
management
Total
Basis of allocation		 People
£000
1,671
787
49
658
339
11
3,515
Time
spent		 Premises &
vehicles
£000
430
201
13
121
68
2
835
Space &
time		 Services
£000
181
88
5
352
88
3
717
Time
spent		 Legal &
Professional
Currency
£000
£000
3
217
3
100
0
6
1
37
23
0
0
0
30
360
Direct
Pro rata
with cost		 Sub Total
Support
Sub Total
Governance
£000
£000
2,502
78
1,179
83
73
4
1,169
15
518
75
16
2
5,457
257
Atribution
& time		 Total
£000
2,580
1,263
77
1,183
593
18
5,714

5. GOVERNANCE COSTS

Apportioned governance costs were:

Staf employment costs
Staf & trustee other costs
Premises costs
Ofce services
Legal & professional		 2022/23
Total
£000
108
50
26
17
56
257		 2021/22
Total
£000
96
41
20
23
50
230

6. STAFF, TRUSTEE AND GOVERNANCE COSTS

a.

a. Staf numbers
The trust employed the following average number of staf:
UK:
Administration & fundraising
Welfare
Nepal:
Individual aid inc welfare, Residential Homes and general staf
Medical services
Water projects
Schools projects		 2022/23
19
8
246
147
112
5
537		 2021/22
19
8
234
143
110
7
521

The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 54

b.

UK:
Salaries
Benefts
Social security costs
Pension
Nepal:
Salaries
Benefts
Pension (see Note 13)
Gratuity (see Note 13)
The number of employees whose emoluments exceeded £60,000 for the year was:
£60,001 - £70,000
£70,001 - £80,000
£80,001 - £90,000
£90,001 - £100,000
£100,001 - £110,000		 2022/23
£000
1,020
13
111
94
1,238
4,848
83
455
317
5,703
6,941
2022/23
Number
3
-
-
-
2		 2021/22
£000
953
14
99
85
1,151
4,264
79
369
259
4,971
6,122
2021/22
Number
2
-
-
1
1

Employer’s pension contributions for the higher paid employees were £34,418 (2021/22: £22,560).

Key people in the Trust in UK and Nepal with delegated authority from the Trustees are the CEO and the Senior Management Teams in UK and Nepal as detailed at page 1. With the exception of the Director GWT(N) and Field Director GWT(N), the cost of employing the Senior Management Teams is borne by the Trust. The combined salary and benefits cost to the Trust totalling £656,804 (2021/22: restated: £628,975).

Both the Director GWT(N) and the Field Director GWT(N) are seconded from the British Army with their costs being met by the MOD.

There were no ex gratia payments during the year (2021/22: Nil).

There were no redundancy payments during the year (2021/22: Nil).

Trustees’ expenses, remuneration and donations

In 2022/23 no Trustee received any remuneration or pension but six Trustees were either reimbursed or expenses were paid on their behalf of £29,393: principally on travel to Nepal but also in respect of atendance at meetings at in London (2021/22: four Trustees were either reimbursed or expenses were paid on their behalf of £18,630). Trustees donated a total of £1,760 (2021/22: £2,160).

Related party transactions

Colonel David Robinson is a Trustee of The Gurkha Museum Trust and Patrick Grant is a member of The Gurkha Museum Trust Capital Appeal Board. There were transactions between The Gurkha Welfare Trust and The Gurkha Museum Trust during 2022/23 totalling £7,200 (2021/22: payments - Nil).

55 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

Net expenditure

Net expenditure for the period is stated afer charging:

Audit Fees
UK excluding VAT
Nepal:
Audit Expenses in Nepal
Tax Advisory Services
Actuarial fees
7. INTANGIBLE ASSETS
a. Group
Computer
Sofware
Assets Under
Construction
£000
£000
Cost
At 1 July 2022
229
48
Additions
0
20
Asset transfers
68
(68)
At 30 June 2023
297
0
Amortisation
At 1 July 2022
(122)
0
Amortisation
(94)
0
At 30 June 2023
(216)
0
Net Book Value
At 1 July 2022
107
48
At 30 June 2023
81
0		 2022/23
2021/22
£000
£000
Crowe U.K. LLP UK
30
27
CSC & Co
15
12
Joshi and Bhandari
0
3
Crowe U.K. LLP UK
0
2
CSC & Co
3
0
Joshi and Bhandari
2
0
Crowe U.K. LLP UK
3
2
M/s K A Pandit (India)
2
2
b. Charity
Total
Computer
Sofware
Assets Under
Construction
£000
£000
£000
Cost
277
At 1 July 2022
217
48
20
Additions
0
20
0
Asset transfers
68
(68)
297
At 30 June 2023
285
0
Amortisation
(122)
At 1 July 2022
(114)
0
(94)
Amortisation
(90)
0
(216)
At 30 June 2023
(204)
0
Net Book Value
155
At 1 July 2022
103
48
81
At 30 June 2023
81
0		 Total
£000
265
20
0
285
(114)
(90)
(204)
151
81

The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 56

  1. TANGIBLE FIXED ASSETS, GROUP AND CHARITY

a. Group

Cost
At 1 July 2022
Additions
Asset transfers
Disposals
At 30 June 2023
Depreciation
At 1 July 2022
Depreciation
Disposals
At 30 June 2023
Net Book Value
At 1 July 2022
At 30 June 2023		 Freehold Land
& Buildings
£000
2,409
1
38
0
2,448
(1,282)
(116)
0
(1,398)
1,217
1,050		 Leasehold
Property
£000
1,027
0
336
0
1,363
(418)
(136)
0
(554)
309
809		 Vehicles &
Equipment
£000
762
0
33
(31)
764
(675)
(52)
31
(696)
87
68		 IT
Assets in
Construction
£000
£000
320
19
0
400
0
(407)
(9)
0
311
12
(320)
0
0
0
9
0
(311)
0
0
19
0
12		 Total
£000
4,537
401
0
(40)
4,898
(2,695)
(304)
40
(2,959)
1,842
1,939

b. Charity

b. Charity
Freehold Land Leasehold Vehicles & IT Assets in Total
& Buildings Property Equipment Construction
£000 £000 £000 £000 £000 £000
Cost
At 1 July 2022 1,844 1,027 762 320 19 3,972
Additions 0 0 0 0 400 400
Asset transfers 13 336 33 0 (407) (25)
Disposals 0 0 (31) (9) 0 (40)
At 30 June 2023 1,857 1,363 764 311 12 4,307
Depreciation
At 1 July 2022 (1,282) (418) (675) (320) 0 (2,695)
Depreciation (116) (136) (52s) 0 0 (304)
Disposals 0 0 31 9 0 40
At 30 June 2023 (1,398) (554) (696) (311) 0 (2,959)
Net Book Value
At 1 July 2022 562 609 87 0 19 1,277
At 30 June 2023 459 809 68 0 12 1,348

57 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

9. INVESTMENTS

The historical cost of investments at 30 June 2023 (including investment cash) was £85,613,072 (2022: £84,041,738). 92% of the investment assets are placed in a mixed portfolio of thematic funds.

Listed investments
Fixed interest
UK
Equities
UK
Alternative investments
Multi Asset
Other overseas/Non-specifc region
Property
Cash held as part of investment portfolio
Major movements in investments during the year were:
Opening market value (excl. Cash)
Purchases
Disposal proceeds
Gains (Losses) on investments
Investments donated
Closing market value (excl cash)		 2022/23
£000
1,744
0
2,427
66,142
0
5,609
75,922
6,420
82,342
2022/23
£000
77,837
6,560
(8,994)
473
46
75,922		 2021/22
£000
2,130
218
2,686
63,972
1,813
7,018
77,837
3,596
81,433
2021/22
£000
83,129
76,234
(77,287)
(4,254)
15
77,837

Investment in subsidiary

GWT owns 100% of the issued share capital of GWT Trading Ltd, being 2 ordinary shares with a nominal value of £1. GWT Trading Ltd is registered in England and Wales No.: 02986861 and its registered office is P.O Box 2170, 22 Queen Street, Salisbury SP2 2EX.

GWT TRADING LTD INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2023

Turnover
Cost of sales
Gross proft
Administrative expenses
Operating proft
Proft for the fnancial year before taxation
Tax on proft on ordinary activities
Proft for the fnancial year afer taxation		 2022/23
£
244,842
(102,766)
142,076
(5,167)
136,909
136,909
0
136,909		 2021/22
£
114,028
(53,820)
60,208
(4,539)
55,669
55,669
0
55,669

The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 58

GWT Trading Ltd Statement of Changes in Equity

GWT Trading Ltd Statement of Changes in Equity 2022/23 2022/23 2021/22 2021/22
£ £ £ £
P&L Share Capital P&L Share Capital
Total funds brought forward 55,669 2 14,468 2
Proft for the year 136,909 0 55,669 0
Gif Aid payment (55,669) 0 (14,468) 0
Retained earnings at year end 136,909 2 55,669 2

The company has no recognised gains or losses other than the profit in both periods. All amounts relate to continuing activities.

GWT Trading Ltd Balance Sheet at 30 June 2023

GWT Trading Ltd Balance Sheet at 30 June 2023
Fixed Assets
Intangibles
Total Fixed Assets
Current Assets
Stock
Debtors
Cash at bank and in hand
Creditors - amounts falling due within one year
Net Current Assets
Net Assets
Share Capital
Retained Proft		 2023
£
0		 2022
£
3,961
0
12,814
2,407
180,822		 3,961
8,049
1,723
45,246
196,043
(59,132)		 55,018
(3,308)
136,911
136,911		 51,710
55,671
2
136,909		 2
55,669
136,911 55,671

The GWT Group includes the consolidation of the Ex Servicemen and Families Support Society, a not for profit company registered in Nepal for the legal ownership of land assets purchased by GWT(N). The Directors of the company are all employees of GWT(N) and they must resign their role as Director when their employment is terminated. It is therefore deemed that GWT(N) has control of the Ex Servicemen and Families Support Society and the results are consolidated into the GWT results from 1 July 2020 with the subsidiary retaining all of its profits. Legal ownership of land assets at Kaski was transferred to the company during 2020/21 and a further asset at Damak was transferred during 2022/23. Work is on-going to enable the transfer of further assets in Dharan, Damak, Bagmati, Kaski and Gulmi.

The following GWT(N) employees are the Directors of the Ex Serviceman and Families Support Society:

Yam Bahadur Rana (to 24 September 2023) Shyamkumar Rai Pim Bahadur Gurung Siddhartha Gurung Lila Pun Sherchan Phata Bahadur Gurung (from 24 September 2023)

59 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

The Ex Servicemen and Families Support Society was registered in Nepal on 2 July 2018: Registration number 192748/74/075. The registered address is Pokhara Lekhnath Metropolitan Municipality, Ward Number 10, Ramghat.

The trading results for the Ex Servicemen and Families Support Society the year ended 30 June 2023, as

Ex Servicemen and Families Support Society Income and Expenditure for the Year ended 30 June 2023


0 June 2023
Income and Expenditure
Income
Administrative expenses
Operating (loss)/Proft
Currency (loss)/Gain
(Loss)/Proft for the fnancial year
Ex Servicemen and Families Support Society Balance Sheet at 30 June 2023
Fixed Assets
Tangible Fixed Asset
Total Fixed Assets
Current Assets
Cash at Bank
Creditors falling due within 1 year
Net Current Assets
Net Assets
Share Capital
Reserves		 2022/23
£
276
(276)
-
(4)
(4)
2023
£
590,970
590,970
388
(122)
266
591,236
615
590,622
591,237		 2021/221
£
286
(269)
17
-
17
2022
£
565,129
565,129
420
(132)
288
565,417
661
564,756
565,417

10. DEBTORS

Trade Debtors
Prepayments and Accrued Income
Legacies
Other Debtors		 Group
2023
2022
£000
£000
601
411
361
288
509
1,033
420
374
1,891
2,106		 Charity
2023
2022
£000
£000
601
411
360
288
509
1,033
420
374
1,890
2,106

The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 60

  1. CREDITORS
Trade Creditors
Amounts owed to group and associated undertakings
Accruals
Taxation & social security
Other Creditors		 Group
2023
2022
£000
£000
379
192
0
0
215
186
41
38
898
504
1,533
920		 Charity
2023
2022
£000
£000
373
191
1
2
162
183
41
38
898
504
1,475
918

12. FINANCIAL INSTRUMENTS

Financial assets measured at fair value
Investments in shares
Other liabilities measured at fair value
Constructive obligations (see Note 14)
Net fnancial instruments		 Group
2022/23
2021/22
£000
£000
75,922
77,837
35,456
39,300
40,465
38,537		 Charity
2022/23
2021/22
£000
£000
75,922
77,837
35,456
39,300
40,465
38,537		 Charity
2022/23
2021/22
£000
£000
75,922
77,837
35,456
39,300
40,465
38,537
39,300
38,537

The constructive obligation is measured at fair value based on the expected amounts payable, discounted at an appropriate market rate. The Trust has no loans or overdrafs and has no forward currency contracts or hedging arrangements.

13. PENSIONS AND LEAVING BENEFITS

The charity provides defined contribution pension arrangements for its employees in the UK, and UK employees based in Nepal. Each employee is able to either join the Government’s NEST scheme or arrange their own personal pension plan and the charity contributes 2% of salary for every 1% contributed by the employee, up to a maximum of 10%. Contributions are charged to the statement of financial activities in the year in which they are made. The assets of the plans are held separately from those of the charity. The contributions made by the charity in 2022/23 were £104,935 (2021/22: £84,717). Contributions are disclosed in Note 6 – Staff Costs within both UK and Nepal based on the permanent location of the staff. No further liability arose other than these payments.

The retirement benefits in Nepal previously consist of a defined contribution Provident Fund with 10% contributions from both employer and employee. The Provident Fund is held by the Gurkha Welfare Scheme Staff Retirement Benefit Fund (SRBF), an independent body. In addition, Nepali Labour Laws required employers to contribute to a Gratuity fund. Traditionally this was accumulated in a fund and paid to employees on leaving based on years of service and an independent gratuity fund was established to match the liability. In 2017, under the Labour Act Nepal the gratuity changed from a defined benefit to a defined contribution scheme.

In accordance with the Labour Act, in November 2019, the Trust enrolled in the new Social Security Fund (SSF) of Nepal with combined contributions at a rate of 31% of staff salary; 20% employer contribution and 11% employee contribution. The majority of staff were required to transfer funds to the new SSF.

In line with Government of Nepal direction, during 2021/22, Trustees decided that the SRBF should be closed for all Nepal-based employees and staff offered the choice of either withdrawing accumulated funds and accepting any taxation liability or transferring funds to the SSF. As at 30 June 2023, the account remains

61 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

The Trust has no further liability other than the monthly payments recognised in the SOFA.

  1. CONSTRUCTIVE OBLIGATION (PROVISIONS FOR LIABILITIES FALLING DUE AFTER MORE THAN ONE YEAR)

The Trust has recognised for some years a long-term constructive obligation, as defined by SORP (revised 2019), in respect of its welfare pensions. The SORP requires that such “constructive obligations”, even though they are not legally binding liabilities, be recognised on a charity’s balance sheet. From 2014/15 the Trust has recognised a similar obligation for the welfare support provided through the Disability Support Grant (DSG) to the disabled children of welfare pensioners who were not able to support themselves when their parents were deceased.

An independent actuarial assessment of the net present value of future payments for both the welfare pension and the DSG, as at 30 June 2023, has been obtained using the following long-term assumptions:

The value of the obligation is particularly sensitive to the exchange rate of NPR to GBP with a low of NPR137.570/£ in September 2022, a high of NPR166.145/£ in June 2023 and an average for the year at NPR 155.09/£.

Based on the exchange rate of NPR163.73/£, (2021/22: NPR151.27/£) that applied on 30th June 2023, the value of the obligation for the welfare pension was £28,854,000. This is a decrease of £3,621,000 on the figure for 2021/22 of £32,475,000. The liability to cover DSG has decreased by £224,000 to £6,602,000, (2021/22: £6,825,000). The combined total constructive obligation is £35,456,000.

Welfare Pension
Disability Support Grant
Total Constructive Obligation		 Balance at
1 July 2022
£000
32,475
6,825
39,300		 Movement in
Actuarial Valuation
£000
(1,244)
320
(924)		 Movement in
Rate of Exchange
£000
(2,377)
(543)
(2,920)		 Balance at
30 June 2023
£000
28,854
6,602
35,456

The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 62

15. OPERATING LEASES AND OTHER COMMITMENTS

At 30 June 2023 the group’s future minimum operating lease payments are as follows:

2022/23 2021/22
£000 £000
UK Property lease
Within 1 year 91 70
Between 1 to 5 years 347 246
Over 5 years 0 46
Nepal Property
Within 1 year 22 26
Between 1 to 5 years 37 3
Over 5 years 15 0

Lease payments for the year which are recognised as expenses within the SOFA totalled £135,700 (2021/22: £121,340).

Capital commitments at the balance sheet date:

The Trust has capital commitments which are not provided for elsewhere in the accounts of £164,000 (AWC Damak rebuild). This represents the cost of the contracted commitment less the cost of payments already made.

16. ANALYSIS OF NET ASSETS BETWEEN FUNDS OF THE GROUP AND CHARITY

a. Analysis of Net Assets between Funds of the Group

Unrestricted
Unrestricted
General
Designated
£000
£000
Intangible assets
81
0
Tangible assets
1,123
735
Investments
64,598
17,744
Current assets
10,103
0
Current liabilities
(1,533)
0
Constructive obligation
(35,456)
0
38,916
18,479		 Restricted
£000
0
81
0
856
0
0
937		 Total
£000
81
1,939
82,342
10,959
(1,533)
(35,456)
58,332

b. Analysis of Net Assets between Funds of the Charity

Unrestricted
Unrestricted
General
Designated
£000
£000
Intangible assets
81
0
Tangible assets
532
735
Investments
64,598
17,744
Current assets
9,909
0
Current liabilities
(1,475)
0
Constructive obligation
(35,456)
0
38,189
18,479		 Restricted
£000
0
81
0
856
0
0
937		 Total
£000
81
1,348
82,342
10,765
(1,475)
(35,456)
57,605

63 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

The unrestricted designated fund provides for:

17. UNRESTRICTED FUNDS OF THE GROUP AND CHARITY

a. Unrestricted Funds of the Group

Balance at 1
July 2022
£000
Designated funds
RWEPP
2,000
RWEPP restructuring
0
Disaster response
8,709
Residential homes
8,919
Total designated funds
19,628
General funds
32,907
Total unrestricted funds
52,535
.
Unrestricted Funds of the Charity
Balance at 1
July 2022
£000
Designated funds
RWEPP
2,000
RWEPP restructuring
0
Disaster response
8,709
Residential homes
8,919
Total designated funds
19,628
General funds
32,286
Total unrestricted funds
51,914		 Incoming
resources in
the year
£000
0
0
0
0
0
14,452
14,452
Incoming
resources in
the year
£000
0
0
0
0
0
14,207
14,207		 Outgoing
resources in
the year
£000
0
0
(47)
(463)
(510)
(13,748)
(14,258)
Outgoing
resources in
the year
£000
0
0
(47)
(463)
(510)
(13,640)
(14,150)		 Gains and
Transfers
Movement in
obligation
Balance at 30
June 2023
£000
£000
£000
(1,500)
0
500
640
0
640
(52)
0
8,610
273
0
8,729
(639)
0
18,479
1,461
3,844
38,916
822
3,844
57,395
Gains and
Transfers
Movement in
obligation
Balance at 30
June 2023
£000
£000
£000
(1,500)
0
500
640
0
640
(52)
0
8,610
273
0
8,729
(639)
0
18,479
1,492
3,844
38,189
853
3,844
56,668		 Gains and
Transfers
Movement in
obligation
Balance at 30
June 2023
£000
£000
£000
(1,500)
0
500
640
0
640
(52)
0
8,610
273
0
8,729
(639)
0
18,479
1,461
3,844
38,916
822
3,844
57,395
Gains and
Transfers
Movement in
obligation
Balance at 30
June 2023
£000
£000
£000
(1,500)
0
500
640
0
640
(52)
0
8,610
273
0
8,729
(639)
0
18,479
1,492
3,844
38,189
853
3,844
56,668
18,479
38,189
56,668

b. Unrestricted Funds of the Charity

Unrestricted funds, both general and designated, are expendable at the discretion of the Trustees in the furtherance of the Trust’s objectives. The designated funds have been earmarked by the Trustees for particular purposes, but the designations have an administrative purpose only and do not legally restrict the Trustees’ discretion to apply the funds.

Trustees took the prudent precaution in 2011-12 of creating a designated fund to cover the running costs of the residential homes for the next twenty years so that the homes would not be a drain on other activities. Trustees have identified the requirement to increase the fund to include major works (£400,000) for the next ten years. A further transfer-in of £273,000 represents the increase in valuation of the Residential Homes funds within the investment portfolio. The fund is currently valued at £8,729,000 assuming long term inflation in Nepal of 7.0%.

The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 64

In June 2018, following advice from leading seismologists, Trustees created a designated fund to enable an immediate response to any future natural disasters. This fund was used during 2022/23 to provide 7 significant repairs or replacement of earthquake resilient homes following damage by storms and landslips during the 2022 monsoon. The fund was adjusted for the effects of year end inflation and the rate of exchange with the fund totalling £8,610,000 at 30 June 2023.

As a result of reductions in UK Government funding, FCDO has advised that funding under the RWEPP Grant Agreement will end early in 2024. Trustees had identified the requirement for funds to meet the financial commitment against the planned FCDO programme for the duration of the agreement; this has been reduced to one year at £500,000 for 2023/24.

Trustees have identified the likely requirement for additional costs of restructuring following the withdrawal of FCDO funding, and have agreed to set aside designated funds of £640,000.

18. RESTRICTED FUNDS OF THE CHARITY

a.
Grants to individuals/
Individual Aid:
Welfare pensions & DSG
Welfare grants
Gurkha Welfare Advice Centre
b.
Medical:
MOD Grant In Aid Medical
Medical
Medical camps
c.
Residential Homes:
d.
Water projects:
Water projects – FCDO
Water projects – other
e.
Schools projects:
Neal Turkington Fund
Schools
f.
Community COVID projects
COVID equipment
g.
Other grants:
Vehicles & equipment
MOD Grant in Aid Support		 Balance at 1
July 2022
£000
0
613
0
613
0
0
30
30
0
98
10
108
18
67
85
12
12
5
511
516
1,364		 Income
£000
79
333
3
415
2,750
547
180
3,477
10
1,746
868
2,614
0
289
289
0
0
7
3,335
3,342
10,147		 Expenditure
£000
(79)
(798)
(3)
(880)
(2,750)
(547)
(165)
(3,462)
(10)
(1,763)
(641)
(2,404)
(8)
(312)
(320)
(6)
(6)
0
(3,104)
(3,104)
(10,186)		 Transfers
Balance at 30
June 2023
£000
£000
0
0
0
148
0
0
0
148
0
0
0
0
0
45
0
45
0
0
0
81
0
237
0
318
0
10
0
44
0
54
0
6
0
6
0
12
(388)
354
(388)
366
(388)
937		 Transfers
Balance at 30
June 2023
£000
£000
0
0
0
148
0
0
0
148
0
0
0
0
0
45
0
45
0
0
0
81
0
237
0
318
0
10
0
44
0
54
0
6
0
6
0
12
(388)
354
(388)
366
(388)
937
148
0
0
45
45
0
81
237
318
10
44
54
6
6
12
354
366
937

65 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

a. Grants to individuals

Restricted funds for welfare pensions are obtained from individuals that regularly donate to a pensioner support fund as well as other advertising and appeals. Welfare grants include delivering earthquake resilient homes. Excess funds raised in 2022/23 will enable delivery of the earthquake resilient homes programme in 2023/24.

b. Medical

The MOD Medical grant-in-aid is provided in support of medical services to our beneficiaries. Only four medical camps were delivered and the donor agreed that funds could be carried forward to 2023/24.

c. Residential Homes

A donation for the provision of care provided through the Residential Homes.

d. Water projects

FCDO funding is provided through an accountable grant agreement for the rural water and sanitation programme with additional funding coming from charitable trusts and individuals. The balance at 30 June 2023, reflects the net book value of assets funded through the agreement which continue to be in use in support of the agreement.

e. Schools projects

Several individuals and charitable trusts have sponsored the rebuilding of schools. Restricted funds are carried forward to 2023/24 to enable completion of two specific projects. A memorial fund in memory of Neal Turkington, lost in action while serving in Afghanistan, funded two major build projects in 2013. A final project has been identified for completion during 2023/24.

f. Community COVID Projects

COVID-19 support to the wider community continued during 2022/23. This was principally through the distribution of Personal Protective Equipment (PPE), oximeters and oxygen concentrator which had been funded by a donor in June 2021.

g. Other grants

The MOD grant-in-aid is provided to support the administration and infrastructure costs of the GWT(N). Delays have been experienced in the procurement of replacement motorbikes over the last year. The process is underway, and donor funds are carried forward to 2023/24 when the bikes should come into service.

The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 66

The following notes, numbers 19 to 24, refer to financial year 2021/22 and are included for comparative purposes only.

19. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES FOR YEAR ENDED 30TH JUNE 2022

Notes
Income from:
3
Donations and legacies
Donations
3a
Legacies
3b
Grants
Ministry of Defence
3c
Charitable activities
3d
Ministry of Defence
Foreign, Commonwealth and Development
Ofce
Other trading activities
Fundraising Events
3e
Retail
Investments
3f
Total
Expenditure on:
4
Raising funds
Fundraising
4f
Investment management costs
4f
Charitable activities
Individual aid
4a
Medical aid
4b
Disaster response
4d
Residential Homes
4c
Community aid
4e
Sub Total Expenditure
Movement in constructive obligation
4g/14
Total
Net income/(expenditure) before other
gains and losses
Other gains and losses
Net (losses)/gains on investments
9
Net (expenditure)/income
Transfers between funds
16&17
Other recognised gains/(losses)
Proft & loss revaluation gain/(loss)
Net movement in funds
Reconciliation of funds
Funds brought forward
Total Funds Carried Forward		 Unrestricted
General
Designated
£000
£000
5,126
0
7,997
0
0
0
0
0
0
0
666
0
24
0
2,045
0
15,858
0
2,262
0
372
0
3,281
50
4,231
357
49
0
0
463
274
1,396
10,469
2,266
1,662
0
12,131
2,266
3,727
(2,266)
(4,254)
0
(527)
(2,266)
(699)
857
(1,226)
(1,409)
41
0
(1,185)
(1,409)
34,092
21,037
32,907
19,628		 Restricted
£000
1,867
0
3,325
2,525
1,933
4
0
0
9,654
0
0
3,922
2,971
0
5
3,072
9,970
0
9,970
(316)
0
(316)
(158)
(474)
0
(474)
1,838
1,364		 2021-22
Total
£000
6,933
7,997
3,325
2,525
1,933
670
24
2,045
25,512
2,262
372
7,253
7,559
49
468
4,742
22,705
1,662
24,367
1,145
(4,254)
(3,109)
0
(3,109)
41
(3,068)
56,967
53,899

67 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

  1. COMPARATIVE STATEMENT OF EXPENDITURE 2021-22
Grants Direct
Costs		 Support Costs Support Costs 2021/22
Support Governance Totals
Charitable activities £000 £000 £000 £000 £000
a. Individual Aid
Welfare pension 3,647 0 1,326 43 5,016
Care for the elderly 88 3 1 1 93
Disability support 193 0 89 2 284
Winter allowance 22 0 35 1 58
Welfare Grants & Support 773 90 335 10 1,208
UK welfare 250 323 4 17 594
Total individual aid 4,973 416 1,790 74 7,253
b. Medical aid 2,275 4,346 870 68 7,559
c. Residential Homes 25 385 54 4 468
d. Disaster Response 0 48 0 1 49
e. Community aid
School projects 169 623 314 10 1,116
COVID support 0 76 0 1 77
Water projects 0 3,124 422 3 3,549
Total community aid 169 3,823 736 14 4,742
Sub Total Charitable activities 7,442 9,018 3,450 161 20,071
f. Cost of generating funds
Fundraising 0 1,733 462 67 2,262
Investments 0 354 16 2 372
Total costs of generating funds 0 2,087 478 69 2,634
Total Expenditure prior to movement 7,442 11,105 3,928 230 22,705
in Constructive Obligation
g. Movement in Constructive
Obligation		 0 1,662 0 0 1,662
Total Expenditure 7,442 12,767 3,928 230 24,367

The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 68

  1. COMPARATIVE ANALYSIS OF SUPPORT COSTS 2021-22
a. Individual Aid
b. Medical Aid
c. Disaster response
d. Residential Homes
e. Community Aid
f. Fundraising
g. Investment
management
Total
Basis of allocation		 People
£000
1,432
692
0
43
574
303
10
3,054
Time
spent		 Premises &
vehicles
£000
351
169
0
11
110
59
2
702
Space
& time		 Services
£000
285
138
0
8
101
75
3
610
Time
spent		 Legal &
Professional
Currency
£000
£000
2
(280)
3
(132)
0
0
0
(8)
0
(49)
25
0
1
0
31
(469)
Direct
Pro rata
with cost		 Sub Total
Support
Sub Total
Governance
£000
£000
1,790
74
870
68
0
1
54
4
736
14
462
67
16
2
3,928
230
Atribution
& time		 Total
£000
1,864
938
1
58
750
529
18
4,158
  1. COMPARATIVE ANALYSIS OF NET ASSETS BETWEEN FUNDS, GROUP AND CHARITY 2021-22
Unrestricted Unrestricted Restricted
General
Designated
£000
£000
£000
Intangible assets
155
0
0
Tangible assets
924
810
108
Investments
62,615
18,818
0
Current assets
9,433
0
1,256
Current liabilities
(920)
0
0
Constructive obligation
(39,300)
0
0
32,907
19,628
1,364		 Total
£000
155
1,842
81,433
10,689
(920)
(39,300)
53,899

The unrestricted designated fund provides for:

69 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

  1. COMPARATIVE UNRESTRICTED FUNDS OF THE GROUP AND CHARITY 2021-22
Designated funds
RWEPP
Disaster response
Residential homes
Total designated funds
General funds
Total unrestricted funds		 Balance at 1
July 2021
£000
4,500
7,500
9,037		 Incoming
resources in
the year
£000
0
0
0		 Outgoing
resources in
the year
£000
(1,396)
(407)
(463)		 Gains and
Transfers
£000
(1,104)
1,616
345		 Movement in
obligation
£000
0
0
0		 Balance at 30
June 2022
£000
2,000
8,709
8,919
21,037
34,092
55,129		 0
15,858
15,858		 (2,266)
(10,469)
(12,735)		 857
(4,912)
(4,055)		 0
(1,662)
(1,662)		 19,628
32,907
52,535

Unrestricted funds, both general and designated, are expendable at the discretion of the Trustees in the furtherance of the Trust’s objectives. The designated funds have been earmarked by the Trustees for particular purposes, but the designations have an administrative purpose only and do not legally restrict the Trustees’ discretion to apply the funds.

Trustees took the prudent precaution in 2011-12 of creating a designated fund to cover the running costs of the residential homes for the next twenty years so that the homes would not be a drain on other activities. Trustees have identified the requirement to increase the fund to include major works (£400,000) for the next ten years. A further transfer-in of £340,000 represents the increase in valuation of the Residential Homes funds within the investment portfolio. The fund is currently valued at £8,919,000 assuming long term inflation in Nepal of 7.0%.

In June 2018, following advice from leading seismologists, Trustees created a designated fund to enable an immediate response to any future natural disasters. This fund was used during 2021/22 to provide 13 significant repairs or replacement of earthquake resilient homes following damage by storms and landslips during the 2021 monsoon season. Trustees agreed to fund the payment of secondary medical claims for COVID-related illness from the reserve at a cost of £357,000. The fund was increased for the effects of year end inflation and the rate of exchange with the fund totalling £8,709,000 at 30 June 2022.

Trustees identified the requirement for funds to meet the financial commitment against the planned FCDO programme for the remaining four years of the RWEPP grant agreement of £2,000,000 at 30 June 2022.

The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 70

  1. COMPARATIVE RESTRICTED FUNDS OF THE CHARITY 2021-22
Balance at
01 July 21
£000
a.
Grants to individuals:
Welfare pensions & DSG
0
Welfare grants
826
826
b.
Medical:
MOD Grant In Aid Medical
0
Medical
0
Medical camps
81
81
c.
Residential Homes:
0
d.
Water projects:
Water projects – FCDO
114
Water projects – other
0
114
e.
Schools projects:
Neal Turkington Fund
18
Schools
146
164
f.
Community COVID projects
COVID equipment
88
88
g.
Other grants:
Vehicles & equipment
0
MOD Grant in Aid Support
565
Support & infrastructure
0
565
1,838		 Income Expenditure
£000
£000
439
(439)
626
(839)
1,065
(1,278)
2,550
(2,550)
158
(158)
80
(131)
2,788
(2,839)
5
(5)
1,933
(1,949)
214
(204)
2,147
(2,153)
0
0
299
(378)
299
(378)
0
(76)
0
(76)
18
(13)
3,300
(3,196)
32
(32)
3,350
(3,241)
9,654
(9,970)		 Transfers
Balance at
30 June 22
£000
£000
0
0
0
613
0
613
0
0
0
0
0
30
0
30
0
0
0
98
0
10
0
108
0
18
0
67
0
85
0
12
0
12
0
5
(158)
511
0
0
(158)
516
(158)
1,364		 Transfers
Balance at
30 June 22
£000
£000
0
0
0
613
0
613
0
0
0
0
0
30
0
30
0
0
0
98
0
10
0
108
0
18
0
67
0
85
0
12
0
12
0
5
(158)
511
0
0
(158)
516
(158)
1,364
613
0
0
30
30
0
98
10
108
18
67
85
12
12
5
511
0
516
1,364

a. Grants to individuals

Restricted funds for welfare pensions are obtained from individuals that regularly donate to a pensioner support fund as well as other advertising and appeals. Welfare grants include delivering 101 earthquake resilient homes. The 100 Homes fundraising campaign in 2022 was very successful and exceeded the programme budget, providing restricted funds towards homes and welfare grants to be delivered in 2022/23.

b. Medical

The MOD Medical grant-in-aid is provided in support of medical services to our beneficiaries. One medical camp was cancelled and the donor agreed that funds could be carried forward to 2022/23.

71 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

a. Residential Homes

A donation for the provision of rehabilitation services provided through the Residential Homes.

b. Water projects

FCDO funding is provided through an accountable grant agreement for the rural water and sanitation programme with additional funding coming from charitable trusts and individuals. The balance at 30 June 2022, reflects the net book value of assets funded through the agreement which continue to be in use in support of the new delivery agreement.

c. Schools projects

Several individuals and charitable trusts have sponsored the rebuilding of schools. Restricted funds are carried forward to 2022/23 to enable completion of two specific projects. A memorial fund in memory of Neal Turkington, lost in action while serving in Afghanistan, funded two major build projects in 2013. A final project has been identified for completion during 2022/23.

d. Community COVID Projects

COVID-19 support to the wider community continued during 2021/22. This was principally through the distribution of Personal Protective Equipment (PPE), oximeters and oxygen concentrator which had been funded by a donor in June 2021.

e. Other grants

The MOD grant-in-aid is provided to support the administration and infrastructure costs of the GWT(N). Restricted donations included income to fund the additional COVID related expenditure incurred ensuring that the welfare staff were able to undertake their work in a safe environment. With the continuation of the COVID pandemic and subsequent economic and supply chain challenges, GWT(N) continued to experience delays in the procurement of equipment including replacement motorbikes, resulting in the carry-forward of restricted funds to 2022/23. The carry-forward is further increased by due to the favourable rate of exchange for much of the year.

The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023 72

FUNDRAISING ACKNOWLEDGEMENTS

None of the work we do would be possible without our supporters.

The following deserve a special mention for their generosity during the year:

Army Benevolent Fund Belstone Management Services Ltd Benesco Charity Limited Brigade of Gurkhas Gurkha Brigade Association Heritage Knives Nepal Jersey Overseas Aid Jones Kemp Josie and Vince Gowler Lord Barnby’s Foundation Ministry of Defence Mr Aidan Birket Mr Jim Morton Mr John James Delaney MC Mr John Martin Mr Rick Plowman Mr Robin Rawlings Mrs Annet e Giddins Queen’s Gurkha Signals Richemont International Ltd Simon Gibson Charitable Trust Sir Edward Lewis Foundation SSAFA The AEB Charitable Trust The Alan Chinery Charitable Trust The C P Charitable Trust The Cadogan Charity The Callendar Charitable Trust The Castanea Trust The Derek Raphael Trust The Dyers’ Company Charitable Trust

The Eddie Dinshaw Foundation The Faslane Trust The Freddie Green and Family Charitable Trust The Gurkha Museum The Gurkha Welfare Trust Jersey The Hadley Trust The John Rawding Charitable Trust The John Swire (1989) Charitable Trust The Kenneally International Foundation The Kilpatrick Fraser Charitable Trust The Kirby Laing Foundation The Manali Charitable Trust The Medlock Charitable Trust The MJB Charitable Trust The Mr and Mrs J M B Trust The Patrick & Helena Frost Foundation The Petros Set lement Trust The Queen Mary’s Roehampton Trust The Richard and Anne King Charitable Trust The Ridgeback Charitable Trust The Rose Family Trust The Rossie Foundation The Sir Victor Blank Charitable Set lement The Wigoder Family Foundation UK Aid Universal Gurkha Security Services Ltd Vigilance Properties Ltd Worth Waynfl ete Foundation

We also remember with much gratitude those no longer with us who generously lef a gif in their Will.

We are immensely grateful to all the individual donors, community groups, charitable trusts and corporate partners for their commitment in supporting us throughout the year, helping us to exceed our target for fundraising income.

Our fundraising year included:

73 The Gurkha Welfare Trust Annual Report and Accounts | Year ended 30 June 2023

The Gurkha Welfare Trust PO Box 2170 22 Queen Street Salisbury SP2 2EX

Tel: 01722 323 955 Email: info@gwt .org .uk www.gwt.org.uk

Registered Charity No 1103669 Company Limited by Guarantee No 5098581 Registered in England

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