2023-12-31-accounts

Charity registration number 1124661 Company registration number 05853180 (England and Wales) THE LATVIAN WELFARE TRUST ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

THE LATVIAN WELFARE TRUST LEGAL AND ADMINISTRATIVE INFORMATION Trustees Mr M Vizbulis Ms Kl Zobens East Mrs B Freimane Mr G Lerhs Eosa Mr J Voitkevics Mrs E Beet MT5 E Browell Mrs L Liepina {Appointed g March 20241 {Appointed 9 March 20241 (Appointed 9 March 20241 Secretary Mrs E Beet Charity number 1124661 Company number 05853180 Registered offiGe Catthorpe Manor Lilboume Road Catthorpe Leicestershire England LE17 6DF Auditor Cottons Accounlanls LLP Chestnut Field House Chestnut Field Rugby Warwickshire United Kingdom CV212PD Solicitors BTethertons LLP Montague House 2 Clifton Road Rugby Warwickshire CV21 3PX

THE LATVIAN WELFARE TRUST CONTENTS Page Trustees. report Indep&ndent auditovs report 12-14 ststement of financi818Ctivities 15 Balance sheet 17 Statèment of cash flows 19 Notes to the financjal statements 20-33

THE LATVIAN WELFARE TRUST TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees of thè Latvisn Welfare Trust present their annual report together with the audited finanoial statements of the Charity for the year ending 31 December 2023. The Annual Report serves the purposes of both a Trustees. report and a Directors. report undèr company law. The trustees confirm that the annual report and financial slalements of the charitable company Comply with the current ststulory requirements, the requirernents of the ch8rtstJle company's governing document and the promsions of the Statement of Recommended Practi¢e ISORPI applicable to charities preparing their a¢¢ounts in accordan￿ with the Financial Reporting Standard applit>blè in thÈ UK and Republic of Ireland IFRS1021 leffeclive 1 January 20191. Objecttves and actlvltles The Latvian Welfare Tnjst's public benéfit (respectively, charitable activiliesl has signifi￿ntlY increased in scale in recent years because of the increase in numbers of Latvians living in the UK. However, thèse activities build on what was in place initially when the Charity was fomed focusing on.. support for the Laman community and Latlrian cuY(ural activities in the UK, especially Ihroijgh our two m8jor centrts, Catthorpe and London. ¢h8ritsble support for Latroians in need, both in the UK and abroad {Latvial. The mainta￿nIng of the London and Catthorpe cent￿S is of great psychological and practical significance to the Latvian community in Britain. The centres contain not only facilities but also works of art and important histori￿1 books and documents. 11 is fiJndamental to and makes possible OLir charttable a¢livilies. Hence, making a success of the trading activities supports the continued existence of the two centres. All of the above. of course, was unexpectedly and $eve￿IY impacted by the Covid pandemic from March 2020 onwards and well into 2021. Lafvian community schools, summer camps, church servicès, folk dancing groups, choirs, and folklore ensembles, which are the mainstay of our public benefit activty were effectively closed down and only gradually restsrted their 8Ctivilies in the latter part of 2021. Trading activities to support our centres were also severely impa¢ted and resulted in loss of income. Our staff in particular, and our voluntéers deseTve our sincere gratitude for their huge added efforts they put in lo get us through the crisis. Overview of our Cultural Centres Catthorpe Manor (also the registered Offi￿ for the Trust} has a 20-room hotel, a rèstaurant and $ever81 function rooms and outbuildings, most of which were leased out to it subsidiary trading company, LWT Trading UK Ltd. The Catthorpe centre provide5'. Sheltered accommodation for elderfy Lafvians. Rented rooms, apartments, and houses for those wanting to live in a L8tvian community. Library and doeumèntsry arehive about Latvians in the UK, used by professionals trom Lafvia. Cultural a¢tivzties'. Home to a Lafvian choir, folk dancing tmupes, and a folklore ensemble. Children's summar camps for Latvian and Estonian communities. Traditional functions and gathèrings f8cililies. Function rooms, hotel. and barfor community use and public hi￿ for events like weddings and conferenGes.

THE LATVIAN WELFARE TRUST TRUSTEES, REPORT {INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 The Loftdon centre provides- Guest house and Central London venue for Latvian social and traditional activities. Library and social Club. Accommodation for Latvian students and paying guests. Facilities for Latvian Sunday school and language classes. Meéting place for Latvian business groups, including th¢ Latvian Chamber of Commerce. This centre serves as a vibrant hub for the Lafvian community, offering a wide range of seThices 8lld fa¢iliti8s. Both Centres also: Host guests from the Latvian parli&m&nl 8nd proviiye the opportunty for Lafvran natponals to meet with government representatives. Provide funclion moms to hold annual general meetings or similar gatherings for other Latvian community organrsétions groups. Provide a function room and fscilities for th￿e Lalvian folk d8ncing groups and choir. as well 8$ for concerts, theatre productions and other social events. Hold charitable activities run or s(Jpported by the Trust. However, the loGation of the event is defined by the Cuslomerand Gould b& held anywhere. 3. Advan￿ the education of Latvian people in Lafvia and in the United Kingdom independendy and with assistsnce of other organisations.. With assistance of the Lafvian Education Foundation, help to support the children's Saturday or Sunday schools across the UK providing them lessons in Latvian history, Isnou8ge, and traditions. A donation to the European Asso¢iation of EUR 1,300 supports an organisation active primarily in education and cultur81 areas, as well as supporting the Latvsan diaspora community across Europe. Providing f2cilitiÈs at both Catthorpe and the London centre for Latvian cultural actimties and rneetings, including rehearsals for dancers, choirs, and the8trÈ groups. The groups rehearse for particul8r events for both Latrrfian and non-Latvian audienc&s. The lotsl subsidy value for both c£ntres is in the region of £77,000 for 2023.

THE LATVIAN WELFARE TRUST TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 At Catthorpe the subsidy value was £40,094 for the followng a¢livilies.' Choir Reh&arsals Folk-D&nce Classes {bNo diffÉrénl dance groups) Masterdasses for choral conductors 2 Gèneol Meetings of The Latrian Welfare Trust 2 meetings of the local branth of the LV Camps mainly for children, lasting between 2- 6 days. Theatre group events of 1- 6 days Traditional midsummer cèlèbration over 4 days with additional days either side for set￿p and dearing. This £ttracted over 4000 people. Estonian events Several school reIaled events Provssion of premises for the Lafvian national electtons and Independence D£y celebrations At the London centre the subsidy value for the following was £37,310 including.. Chilcjren's folk dance group meetings DVF London branch events Folk dance group "Jautrais paris" rehearsals Folk dance group "Londona dejo" rehearsals Folk dance group 'Salinieki° rehearsals "Koklu 28Pte' folk group rehearsal (using traditional instruments similar lo a zithèrl Latvian Language gr()up meetings London Latlian choir rehearsals L8tvi8n school days Children's arts & crafts s8ssions Trealre group meetings Provision of prernises for the Latvian national elections and Independence Day celebrations

THE LATVIAN WELFARE TRUST TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT} (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 4. To preserve anctent and modern buildings, monuments, archivas and works of art of historical or cultural importance to Lafvia and its people and is desirable to preserve for the publi¢ benefit and historic importance of the Baltic Stales.. Part of the donation lo the DV CV Ilhe DV Central Committee) is used to support the Brothers, Cemetery in Lestene, Latvia, a military cemètery of great historical Signifi￿nce. The Catthorpe Estste contsins and supports the work of a library and the documentary archive about Latvians in the UK dating from before WW2. The facilities are donated at a cost of some £10,000 p.a. Within the grounés of the Catthorpe Estate is a stone sculpture commemorating the fallen during War 8nd the house dlsplays several important Latvisn works of art. The London centre there are works of art by Latvian attisls that are histOriC811y significant to the Latwan nation and L2b/i3n people. The London centre has 2 library run by the Lafvian National Council in Great Britain. but the Maintenan￿ of the premises is the Fesponsibility of the Trust. The London ￿ntre has a store of L8tvian Folk costLJmes for use by various community groups and th& Latvian School. 5. To organis8 and promotè social events and recreational actiwties for the benefit of L3tVi8n p￿pIe who have a need for such faalities by reason of their age, infirmity, financial hardship, and hardship caused by social or economic cir¢umstanees with the objective of improving their conditions of life= Planning events and activities are essential for meeting these objectives., regular meatings of the trustees are required to ensure appropri8te activities are available to the wider community. Since the pandemic, most face-to-face meeting5 have been abandoned in favour of video meetings. Regular trustees, meetings were held online ten times in 2023, with additional meetings arranged when required for specific issues. This has proved to be highly effective, as meetings have tended to be more focussed and meeting costs have been all bul eliminated. Particular attention is paid to traéitional Latvian events, for example, Midsummer celebrations and Latvia's Independence Day. These are the times when the Latvian community feels the greatest need lo connect with each other. The Latvian Ambassador to the UK also lakes part in these events. Two General meetings were held al Catthorpe Manor enabling the Trusts members to review activrties, participate in discussions. debates, raise issues of particular ¢on¢èrn 2nd make decisions by voting. Social media and s dedic81ed email address pmvides a means for our members and the widér communtty to not only sh8re news bul also lo provide feedback and raise 8ny problems they may need help with. The Trust aims to maintain good relationships with the Latvian National Council in Britain, Latvian Diaspora Representatives in the UK and the Embassy of Latr￿1¥ to the UK. In the London propety, the Tjwst provides subsidies in the form of accommodation of 8 rooms at a reduced rate for students from Latwa who have been given the opportunity to sluéy in the UK but who would not otherwise be able to #ffard the additional accommodation costs.

THE LATVIAN WELFARE TRUST TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Achievements and performance While both UK ¢enlres employ paid staff through its subsidiary ¢ompanies to carry out the nomal day to day operational functions, most of the background work of the Trust is carrled OLSI by the trustees and other volunteers from the Lafvian community. The role of volunteers is important and over the years their input has be&n invaluAble, not least because of the ¢ost $8vings. Apart from the twstees, there are up to 100 other volunteers in any one year who contribute a wide range of skills and expertise, for example to advise about savings on utilities. to pra¢ti¢al help In Clearing up the Estate. It h£s, however. bttcorne increasingly diffi¢ull to find suitable trustees as this does require specific knowledge and time ¢ommitmenl. To reduce the pressure on the tnjstees, the Ba8rd of Trustees employs a full-tim¢ adrninistrator, who lakes on most of the administrative functions, and Én¢reases our presence on social media, supports the residents of the sheltÉrèd housing and increases the involvement of the diaspora in Trust activities. People who have moved from Latvia lo the UK during the last 30 years now form a key part of the membership and the various ¢ommTttees, which is a positive sign for the future. The Trust works dosely with other Lafvian organisations such as the Latvian National Council in Great Britain ILNCI. Lafvian Diaspora Representstives in UK and the Lafvian Lutheran Churd) as well as with the Embassy of Latvia lo the UK. The Trust also supports the Lafvian Educational Foundation, a joint charity established with the LNC, which helps to provide financial assistan￿ to the growing number of weekend schools for Latvian children in the UK and supports various other educational and cultural activities. Following the pandemic some cultural activities have not retumed, but in others there was an increase in activity mainly in preparation for the much-awsited Song and Dance Festival in Latvia at the end of June 2023 for which participstion is highly ¢ompelilive. The wedding business at Catthorpe gradually improved during the year as couples were finally permitted to be joinèd by friènds and family, but the size of the events reduced. MLJ¢h work was done lo build relationships with local companies to increase the use of conference facilities and hotel a¢commodation. In London the retum of tourists did much to accelerate the overall improvement of the guest house. Close attention was paid to income generation at both UK cenlrtts. as our trsding activities there are required not only to generate profit, bul to maintain and improve the ¢entres, whiGh are regarded as key lo our charitable activities. At Catthorpe, over the years, we have invested in four bungalows to increase the rental in￿me. These, together a number of flats on the estate are all generating in¢ome. During 2022 it became appar8nt that neither the outsourcing accountancy nor the changes in the presentation of the accounting information were as helpful as expected and il was decided to bring the control of a¢¢ounts for both the Trust and the subsidiary ¢omp8ny back in-house. This was achieved at the end of 2022 with the appointment of a Financial Controller whose ￿spOnSIbl1111eS include not only the trading subsidiary accounts in Catthorpe and London but also those of the TrusL The first three months of 2023 already showed this to be a positive move with both greater engagement by the Financial Controller in sll aspects of the business as well as greater clarity of the group's finartces. Financial review a. Going Concern The Charity and ils subsidiary LWT Trading UK Limited continued to make losses in the year 2023. As a result. on 20 September 2023 followed the closure of the Catthorpe Manor business and subsequent Creditors Voluntary Liquidation of LI￿ Trading UK Limited. The tDJstees completed a restructuring of the operations which resulted in two new subsidiari&s being forrned, one to manage the London business and the other to manage the Catlhorpe estate. This has proved lo be the right decision as both subsidiaries are currently operating with small profit. At the time of approving the financial statements, the trustees have a reasonable expectsllon that the Tnjst has adequate resouws to continue in operational existence for the foreseeable future. Thus. the trustees continue to adopt the 90ing concern basis of accounting in p￿paring the financial stalernerrts.

THE LATVIAN WELFARE TRUST TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 The Budgets for the Trust and its trading subsidiaries were initially set by their respective General Managers in ¢onjun¢lion with one ol the trading company directors. Budgets were then discussed at tracfing company Board mèetings where all Directors, both General Managers, the Company Secretary and the Tmsl Chainran are present. As required, other trustees rnay be invited to 8ttend. Since the restructuring budgets have been reviewed and continue to be reviewed on a regular basis. Budgets are monitored monthly and may be adjusted rf necessary. BLJdgets are shared with the trustees énd the trustees are kept informed at their monthly Board meetings of the financial situation of the business. Cash flow is monitored weekly by the Financial Controller in conlunction with the trustees and Directors of the subsidiaries. Potential Cash flow risks are discussed initially with the Ir8ding company's Directors and, if ne￿$Sary, referred to the trustees. All properties ompned by the Trust were leased to the trading company. After reslrucluring, properties are leasèd to trNO separate subsidiaries DVF Estsle Ltd 2nd DVF London Ltd. Together with the trustees, the trading company directors continued lo develop a vade-ranging strat¢gi¢ review of the properties held wthin the lease. This involved looking for any other possible revenue streams without requiring significant ¢apitsl investment. The purpose was to ensure that both the trustees and the trading companies obt8ined the best possible outcomes frorn the use of its properties and that the needs of the Latvian community were mel Tn line with the charitable obje¢lives of the Trusl. Any signifJ¢anl changes recommended would need to be approved by the members of the Trust. The London property relies very much on the tourist industry whi¢h has retumed to P￿-pandemiC levels, whilst Catthorpe is an events venue, SUTtable for conferences and events. With the overseas tourist market open again by the end of 2022, the London guest house saw a strong demand for rooms which wntinu¢d into 2023. During the summer months, the London guest house retumed to 90% occupancy rate, but langèr-tÈrm predictions are a little difficult as bookings are normally made weeks r81hèr than months in advance. Nevertheless, there is growing demand in London for accommodation. so predictions are strong for continuèd growth in income levels. The event hall in London is mosly used by Lafvian Community groups for choir and dance group rehearsals, although is sometimes hired out by non-Latvian groups. The 01￿CloTS of DVF London Ltd are advertising the hall for other potential external Customers to increase income. Towards the end of 2022 the General Manager of the Catthorpe Estsle gave notice of his departu￿, and a new General Manager was appointed with effect from 1 February 2023. He identified areas of the business which could be developed to generate additional revenue. A new business plan for Catthorpe M8nor was developed and this. together with the accounts function retuming in-house, provided both the trading company directors and the trustees greater level of confidence in the trading company becoming profitable by 2024. Indimdually. the business in the London e£ntre conb'nued to thrive, but the Catthorpe Cent￿ had, for 8 number of reasons faile¢J lo mak¢ a profit. Nevertheless, it has continued to be strntegically important centre of cutture to the UK Lafvian comrnunity- The trustees and the member3 of the Trust werè sufficiently encouraged by the new plans for Catthorpe Manor to be more optimistic that it could finally ￿t￿M lo profil. However, it required some further investment in order for the new business plan lo be realised. Nowever, at the end of May 2023, the Ch¥llty Commission provided a report in which il expressed tÈs concems about Various aspects of the Trust's management processes together with an action plan, which induded a requirement to provide "Lwt Trading UK Ltd with no additional funds wthout a YO￿ reason". In thesè circumstances, the truslees agreed to pause any plans to provide any additional investment funds the trading company had requested in order to fully understand the Charity Commission's position and in order to tske legal advice.

THE LATVIAN WELFARE TRUST TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 This situation signfficantly affectéd the newly developed business plans at Catthorpe Manor and wa8 a considerable disappointment to the Directors of the trading company, who had been optimistic about the futu￿ of the Catthorpe Manor business. By August 2023 the Directors of the trading company were signalling that cash flow was becoming a problem and in Sèptember they took legal 2dvice about the future of the Company, which on 20 September resulted in the dosure of the Catthorpe Manor business and the subsequent formal liquidation (Creditors, Voluntary Liquidation) of Trading UK Ltd on 12 October 2023. Although the London centre was part of the trading company, it was self-suffi¢ienl financially, and the appointed Insolvency Practitioner advised that it could continue to trade until other arrangements could be made. Before the fomial liquidation of the trading company, the Trust was able to seize all the assets of the trading company and the leas¢s for the London centre and Catthorpe Manor were surrendered voluntarily. The leases had no commercial value as a dause wthin the 8greement Prevented them from being sold on. Whilst this did not compensate for the debt which had accumulated to the Trust over rnany years. the Trust's independent Insolvency Practitioner believed that the trustees had no othèr option and had acted in thè best interests of the charity in very difficult circumstances. The trustees had the ￿spOnSIbl]ity of deciding how best to move fonvard and maintain thè integrity of both venues. Numerous meetings We￿ held, over 15 in total, to discuss the options available. The twstees agreed that the London ￿￿tre should run independently of Callhorpe as it had been profitsble for many years, but its profits had been supporting the Catthorpe ¢¢nlre. For this reason, DVF London Ltd was formed with a Director from the trustee ard appointed. At Catthorpe the trustèés agreed lo fom another new company, DVF Estste Ltd, to rnanage the rental properties and to plan a strategy for the hotel. Although the Trust itself could manage the rental properties as these were effectively investment propertses, the trustèes felt that it was important to prote¢t the charity and tts 8ssets. Most of the rented properties are old and require frequent maintenance. When setting up the new companies, the trusteès followed Charity Commission recommend2tiolls, to indude at least one trustee as a Director for each of subsidiaries. All Directors arè from the local Lafvian community and, the same as the trustees, are working in 8 voluntary capacity to maintsin the estate lo ensure that tt is kept in the best possible condition whilst the subsidiaries improve their financial independence and stability of their trading activities. Despite the above, the Charity Commission fell the trustees had failed to follow the Charities Commissions, Advi and mismanaged the Charity in the period between 2021 8nd 2023 by continuing lo financially support the trading subsidi8ry Lvirr Trading UK Ltd in the form of a loan. As a result, on 24 June 2024 the Charity Commission issued an official warning to the trustees appointed in or befo￿ 2021 and were continuing to seNe the Charity at the time of the Charity Commission decAsion. Two of the trustees, Chair l Grickus and Treasurer U Revelins. had resigned on g March 2024_ Newly appointed trustees, including a new Treasurer, have experience in finance and business, which wll greatly support the Board of Trustees when maknng any financial decisions. Tnjstees continue to review existing operations and to look for 8ddilional income opportunities as well as possible ¢ost saving actions. A select committee is preparing ewdenc& for Charity Commission that appropriate ?ction has been taken to have sufficient oversight and control of the oper&tions of DVF London Ltd and DVF Estate Ltd. Financially, the Latvian Welfare Fund IDVFI, a non-incorporated membership organisation. has agreed to donate up 10 £200,000 to the Trust to help it through the transition period should it be needed. In 2023 the donation received was £51,500. At the time of approving the financial statements, the DVF London Ltd eontinues to be self-sufficient and generdling a profit, and DVF Estate Ltd is generating a small profit. The Lafvian Weffare Trust is recognised by HMRC for Gift Aid, so trustees have selectèd a committee to increase efforts In attractlng donations and elaim Gift where eligible. b. Reserves Policy l is the policy of the TNst that unrestricted funds which have not been designated for 8 specific use should be maintained at a level equivalent lo between three and six month's expenditure. The trustees consider that reserves al this level will ensure that. in the event of a Signifi￿nt drop in funding, they will be able lo continue the Trust's current a¢tivities while consideration is given lo ways in whith additional funds may be raised. This level of reserves has been m8inl8ined throughout the year. If required, additional reseNes could bÈ raised by the disposal of a fixed asset. However, the trustees believe that such disposal would reduc£ the volume of Charitable activities by the Twsl and are not In favour of such action.

THE LATVIAN WELFARE TRUST TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Prin¢ipal Risks and Uncertainties The Charity's activtties expose il to a numbèr of financial risks including price risk. crtdrf( risk and liquidity risk. The impact of the pandemic restrictions on all aotivities, has by its v&ry natura raised questions about the viability of the trading business. A review of different scenarios led to the condusion that the future plans are sustainable. The management changes that have been implemented are regarded as positive for the future viability of the new businesses. d. Price Risk The Charity is exposed lo price risk in the hotel and events industry, however the Directors of its subsidiaries, reporting to the trustees and in conjunction with the trustees, regularly review and adjust the pricing structure lo take account of competition and general msrket conditions to attract new ¢ustomers. e. Credit Risk The Charity has no significant concentration of credit risk, with exposure spread over a wide number of customers. f. Liquldty Risk There is currenly one loan oulstsnding with a substantial balance in the ieserves. The trustees continu¢ lo seek improvements in the trade of its subsidiary undertakings to financè ongoing activities. A steady improvement in tumover is expected with the restructurfng of the business at Catthorpe Manor and the demand for rooms in London guest house in¢reasing. g. Principal Funding The principal funding Sour￿ are the trading activity'es from its subsidiary companies and rentals from the flats and houses on the Catthorpe eslale. Income is also generated from the Garden Annex at Catthorpe Manor, which runs the sheltered housing accomrnodalion and has several rooms to let. h. Future Plans Following tha refurbishment of Catthorpe Manor in recent years, wth the associated costs, it is not anticipated that any further major developments Mrill be considered for some years, apart from general upgrading of the territory, 811owing finances to stabilise. The guest house in London also continues to require regular maintenance. We do not plan to invest further in the purchase of prop8rtitts on the Catthorpe Eslale at thi5 time. Structu￿, governan¢e and management a. Constitution Thè L8tvian Welfare Trust is registered as a Charitable Company limited by guarantee and was set up by Memornndum ofAsso¢ialion. b. Goveming Document The Charity is governed by ils Memor8ndum 8nd Artdes of AssocAation and conslitules a limitèd Company, limited by guarantee, as defined by the Companies Act 2006.

THE LATVIAN WELFARE TRUST TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 c. Re¢ruttment and Appointment of New Tru$téos New trustees are appoinled from suitable canéidates who have the necessary language skills and experience in the specific requirements of the trust. New trustees undergo a briefing sèssion lo outline their legal oblig8tions under charity and company law, the Charity Commission guidantt on public benefit. the Memorandum and Articles of Association, the business plans and recent financial summaries. The training needs of e8ch trustee are assessed on an individual basis and any courses are arranged where appropriate. d. Organisational Structu The 808rd of Trustees. ¢omprising of no more than nine members, is elected from members and délègates of the Latvian Welfare Fund (also known as thè DVFI branches and groups at the AGM held in March each year. Election is on a staggered, rotation basis for a period of 3 years and trustees are open to r¥le¢tion al the end of that period. A Gèneral Meeting is also held Septemberloclober each year. There have been reductions in the number of brdnches over previous years, in part duè to changes in the rules goveming branches and groups. A branch is required to have at least 20 members. whereas a group can be formed with at least 10 members. Non& of the trustees receive any remuneration or any other benefit from their work with the Charity, nor are there any conlrdctual relations befv/een any trustees and suppliers or contr2Ctors to any of the cent￿$. The Board of Trustees meets monthly lo discuss general business and speafic issues relating lo the running of the centres in London and Catthorps. The trustees, who are also the directors for the purpose of ¢ompany law, and who Served during the year and up to the date of sign8ture of the finan￿al ststements were.. Mrs E Brauele Mrs l Grickus Mr UJ Revelins Mr M Vizbulis Ms Kl Zobens Essl Mrs B Freimane Mr G Lerhs Eosa Mr J Voitkevics Mrs E Beel Mrs E Browell Mrs L Liepina (Resigned 11 September 20231 (Resigned 9 March 2024) (Resigned 9 March 20241 IAppointed 9 M8rth 20241 IAppointed 9 March 20241 IAppointed 9 March 20241 e. Wjder Network The Trust works closely with the Latvian Educational Foundation 1990 {charity no.10045781 by appointing two trustees ththo, together with other Foundation trustees, provide scholarships and support to Lafvian weekend schools in the UK and grants lo other educational and cultural programmes. In 2023 the Trust was represented by.. Mrs B Freimane Mr J Voitkeiqcs

THE LATVIAN WELFARE TRUST TRUSTEES. REPORT {INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 f. Related Party Relationships The Latvian Welffare Fund is considered to be a related paty as the Board of Trustees is s&lecled from its membership in accordsftce wth the Trust's Memorandum and Arti¢les 8S amended in November 2014. Furtherniore, The Lafvian Welfare Trust had one trading subsidiary.. LWF Trading UK Limited in the UK, which on 12 October 2023 went into liquidation. It substtouently formed I￿0 new subsidiaries, namely, DVF London Ltd and DVF Estate Ltd. Mr Miks Vizbulis became a trustee on 12 March 2017 and has since 1 April 2017 rented propety on th8 Catthorpe estsle which is owned by The Latvian Welfare Trust but was leasecs to Lvtry Trading UK Ltd. He Pays 8 commercial rent and receives no privileges. Under a new lease to be signed before the end of November 2023, this propety will be leased to DVF Estste Ltd. As the Trust owns and rents out several properties on the estste, occasionally using a letting agency, guidance on rents has been made available. Mr Girts Lehrs was appointed a trustee on 20 March 2022 and is 81s0 8 member of the team organising the Midsummer Festival at Catthorpe Manor. He receives no payment from the fees charged to attendees and he has no)t been involved in any financial negotiations conceming the use of the land rented for the festival. g. Risk Management The Trustees have a risk management strat￿Y which comprises of: A monthly review of the financial and management risks that the charity alld its centres may face. Systems and procedures to mitigate those risks identrfied. Detailed Health & Safety policies for the centres. London and Catthorpe. The trusteés are aware that financial sustsinability is the main rtsk for thè charity. Key elements in the management of financial risk are budgets to highlight expected business trends, together assessment of monthly financial summaries against budoel and ¢lose attention to ￿sh flow. Additional attention has 81$0 been focussed on the More general noll-fjnanGial risks arising from fire, health and safely. and food hygiene. Particular attention is given lo the operation of the shelEered accommodation at Catthorpe for the well-being of its residents. The trustees are cornmitted to the stand8rds oudined in the Charity Commission's Charity Govemance Code. h. Fundraising The Charity has no fundrdising activities requiring disclosure under Section 162 of Charities Act 2011. i. Remuneration Policy Our approach to remuneration ensures that we can attract and retsin tslented and motlV8ted people who can achieve our mission 8nd deliver our objectives. Our aim is to pay ¢ompetilively in the not-for-profil sector within the context of affordability. Statement of trustees. responsibilities The trustees (who are also the directors of the Charity for the purposes of company lawl are responsible for preparing the Trustees, Report and the financial slaternents in aGcordan¢e with applieable18w and United Kingdom Accounting Standards {Uniled Kingdom Generally Accepted Accounting Practice). Company12w requires the trustees lo prepare financial statements for each finan¢i81 year. Under company law, the trustees musl not approve the financial sl8tements unless they are satisfied that they give a true and f2ir view of the state of affairs of the Group and the Charity and of their incoming resources and application of resources. including their income and expenditure, for that period. In preparing these financial statèments, the trustees are required to= 10-

THE LATVIAN WELFARE TRUST TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 select suitable accounting policies and then apply them consistenuy. observe the methods and principles of the Charities SORP {FRS 1021. make judgements and accounting estimates that are reasonable and prudent. staté whether applicable UK Accounting Standards IFRS 1021 have been followed, subje¢t to any material departures disclosed and explained in the fin8n¢i81 stslements. prepare the financial statements on the going coneèrn b8sis unless rt is inappropriate lo presume that the Group will continue in business. The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Charity's trans3¢tion$ and disclose with reasonable ac¢uracy at any time the finanoal F)OSition of thÈ Group 8nd the Charity and enable them to ensure thal the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the Charity and hen￿ for taking reasonable steps for the prevention and detection of fraud and other irregularits'es. Auditor In accordance with the comp8ny'$ articles, a resolution proposing that Cottons Acwuntsnls LLP be appointed as auditor of the company will be pul al a General Meeting. Disclosure of infomjation to auditor Each of the persons who a￿ truste¢s al the lime when this Trustees, Report is approved has confimed that.. so far as that t￿stee is aware, thèr& is no relevant 8udtt information of which the ¢hatilable group's auditor is unaware, 8nd that the trustee h8s tsken sll the steps that ought to have been taken as a trustee in order to be aware of any relevant audit information and to establish that the charitable group's auditor is aware of that information. The trustees. report was approved by the Board of Trustees. Ms Kl Zobens East Trustee Date= 26th September 2024 11

THE LATVIAN WELFARE TRUST INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE LATVIAN WELFARE TRUST Opinion We have audited the financial ststements of The Lafvian Welfare Trust Ilhe Xrust'l for the year ended 31 De￿mber 2023 whi¢h comprise the statement of financial a¢livilies. the summary income and expenditure account, the balance sheet, the statement of cash lltsws and notes to the fir￿n¢la[ statements, including significant accounting policies. The financAal reporting framework that has been applied in their preparation is appli¢able 18w and United Kingdom A¢￿UntIng Standards, in¢lLJding Financial Reporting Stsndard 102 The FinanGial Reporting St8ntl8rd applicable in the UK8nd R&publio of lfftland IUnilÈé Kingdom Generally A￿p1s￿ Accounting Practice). In our opinion, the fin¥nci¥l statèments.. give a true and fair view of the slste of the charitable companvs affairs as at 31 December 2023 and of ils incoming resources ?nd applicab.on of resources, including its income and expenditurè. for the year then ended., have been properfy prePa￿d in accordance with unit￿ Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2QO6. Basis for opinion We ¢ondLJCted our audit in accordance with Intemational Standards on Auditing (UK) IISAS IUK)) and applicabl¢ law. Our responsibil￿￿$ under those stsnéards are further described in the Auditorfs tpsponsibilities for the audit of the financial statements section of our report. We are independent of the trust in accordaneè the ethical requirements that are relevant to our audit of Ihe financial statÈments in the UK, including the FRC'S Ethical Standard, and we have ￿lfilled our othér ethicAI responsibilities in accordan￿ with these requirements. We believe thsl the audit eviden¢e we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions ￿latIng to going concem In auditing the financial statements, we have concluded that the trustees. use of the going con￿￿ basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfomied, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may Cast significant doubt on the trust's ability lo continue as a going con¢em for a period ol at least twelve months from when the financial ststements are authorised for issue. Our responsibilities and the re8pon8ibilities of the trustees wth ￿SpeCt to going concem ar$ described in the relevant sections of this report. other inforniation The other infomiation compNses the information induded in the annual report other than the financial statements and our auditorfs report thereon. The trustees are responsible for the other information contained ￿￿thIn the annual report. Our opinion on the financial stslements does not cover the other information and. ex￿pt to the extent othetws¢ explicitly stated in our report, we do not express any form of assurance conclusion Ihereon. Our responsibility is to read the other information and, in doing so, consider whether the other infomalitsn is materially in¢onsistent wth the financial statements or our knowledge obtained in the course of the audtt. or olhenNise appears to be materially misstated. If we identify such material inconsistencies or appèrent 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 perfomied, we condude that there is 8 material misstatement of this other information, we are required to report that fa¢t. Wa have nothing to report in this regard. Opinions on othèr mattèrs preseribed by the Companies Act 2006 In our c>pinion, based on the work undertaken in the course of our audit= the infomation given in the twslees, report for Ihe financial year for which the finanual statements 8re prepared, which includes Ihe directors, report prepared for the purposes of company law, is consistent with the financial statements,. and the directors. report included within the trnslees, ￿port has been prepared in 8¢cordance with applicable leg81 requirements. 12-

THE LATVIAN WELFARE TRUST INDEPENDENT AUDITOR'S REPORT {CONTINUED} TO THE MEMBERS OF THE LATVIAN WELFARE TRUST Matters on whlch we are required to report by exception In the light of the knowledge and understanding of the trust and its environment obtained in the course of audit, we have not identified material misstatements in the directors, rèport included wthin the trustees, report. We have nothing to report in respect of the following matters in relation to which the Componies Act 2006 requires us lo report to you if, in our opiniDn- adequate accounting re¢ords have not been kept, or returns adequate for our audit have not been ￿ceiVed from branches not visited by us., or the financial slalemenls are not in agreement with the accounting records and returns,. or certain disdosures of trustees, remuneration specified by law are not made,. or we have not re￿iVed all the information and explanations we require for our audit., Or the trustees were not entitled to prepare the financial statements in accordance the small companies regime and lake advantage of the small companie5, exemptions in preparing the trustees. report and from the requirement to prepare a strategic report Responsibilities of trustee$ As explained more fully in the statement of trustees. responsibilities, the trustees. who are also the directors of the trust for the purpose of cornpany law, are responsible for the preparation of the financial statèments 8nd for being satisfied that they give a true and fair knew. and for such ifttem81 control as the trustees delemiine is necessary to enable the preparation of financial ststements that are free from material misstatement. whether due to fraud or error. In preparing the fin8n¢ial statements, the trustees are responsible for assessing the trust's ability to continue as a going concern. disclosing, as applicable, matters related to going ¢oncem and using the going concem basis of accounting unless the tnjstees éithér intend to liquidate the tharilable company or to cease operations, or have no realistic Slternative but to do so. Auditorfs responsibilities for the audit of the financial ststements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from mat*rial misststement, whether du¢ to fraud or error, and to issue an auditorfs report that includes our opinion. Reason8ble assuran￿ is a high level of assurance but is not a guarantee thal an audit oonduclecl in accordan with ISAS IUKI will always detect a material misstatement when it exists. Misstatements ¢an arise from fraud or error and are considered material if, individu8lly or in the aggregate, they could reasonably be expected to influence the economic decisions of users tsken on the basis of these finanaal slaloments. The extent to which our procedurès are tapable of detecting irregularities, in¢Juding fraud, is detsilèd below. Our approach to identifying and assessing the risks of material miss18tement in respect of irregularities, including fraud and non-compliance with laws and ￿gUlatiOns, was as follows.. the engagement partner ensured that thè &ngagement team collectively had the appropriate competence, capabilities and skills to identify or re¢o9nise non-complian￿ wth applicable laws and regulations,. we identified the laws and regulations applicable to the charity through discussions with trustees and other management. and from our commercial knowledge and experience of the industry- we focused on specifi¢ laws and regulations which we ¢onsidered may have a direttt material effect on the financial statements or the operations of the company, including th8 Comp8nies Act 2006, taxation legislation, anti.bribery. ernploym&nt, enwronmen181 and health and safety legislalion,- we assèssed the extent ot compliance with the laws 8nd regulations identified above thmugh making enquiries of management and Inspecting1￿81 eorrespondence.. and identified laws and regulations were communicated wthin the audit team regularfy and the team remained alert to instsnces of non-compliance throughout the audit. We assessed the susceptibility of the Charity's financAal ststements to material misstatement, including obtsining an understsnding of how fraud might occur, by.. making enquiries of man8gement as to where they considered there was sUs￿ptib11ty to foud, their knowledge of factual. suspected and alleged fraud., considering the intern31 controls in place to mitigate risks of fraud and nonthcompliance wlh Isws and regulations., and maintsining professlonal skeplicism throughout the aLJdit. 13-

THE LATVIAN WELFARE TRUST INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF THE LATVIAN WELFARE TRUST To address the risk of fraud through management bias and override of control8, we- performed analytical procedures to identify any unLJsual or unexpected relationships- lesled journal entries to identify unusual transactions., assessed whether judgements and assumptions made in determining the accounting estimates were indic3tive of potential bias.. an investigated the rationale behiné significant or unusual transsctions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which inGluded, but were not limited to.. agreeing financial statement disclosures lo undejlying supporting documentation., enquiring of management ss to actual and potential litigation and claims., and reviewing correspondence with HMRC. There are inherent limitstions in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the le￿ likely it is that we would become aware of non-¢ompliance. Auditing stsndards also limit the audit procedures required to identify non-¢ompliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal eorrespondence, tf any. A further description of our responsibilities is av8ilable on the Financial Reporting Council's website at.. https'.11 www.frc.org.uk18uditorsr@sponsibilities. This description fomis part of our auditorfs report. Use of our report This ￿port is made solely to the ch8rit8ble company's members, as a body, in accordance with Chapter 3 of Part 16 of thè Companies Act 2006. Our audit work has been undertaken so that we might state lo the charitsble company's members those matters we are required to slate lo them in an euéitols report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibilty to anyone other th8n the charitable company and the charitable company's members as a body, for our 8udil work, for this report, or for the opinion5 we have formed. /V_K •J_ Mark Palmer Bsc BFP FCA (Senior Statutory Auditor) for and on behalf of Cottons Accountants LLP 17 S I_L 2ts1 Chartered AGrountsnts ststutory Audltor Chestnut Field House Chestnut Field Rugby Warwickshire United Kingdom CV212PD 14-

THE LATVIAN WELFARE TRUST CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2023 Unrestricted funds 2023 UnrestTlCted funds 2022 Notès Income and endowThents from: Grants and donations Other trading activities Investrnents Other income 54,250 1,159,714 227,929 86,876 12.667 1,175,836 213,977 16,261 Totsl income 1.528,769 1,418,541 Exp¢nditure on- Raising funds Charitable acttvities 1,648.884 218.556 1,493,123 299,855 Total expenditurè 1,867,440 1,792,978 Net gainslllossesl on investments 13 {5.9771 Net expenditure and movement in funds 1338.6711 1380.4141 Reconciliation of funds: Fund balances al 1 January 2023 11.428,362 11,808,776 Fund balances at 31 De¢ember 2023 11.089,6g1 11,428,362 The Consolidated Stslement of Financial Actiwties includes all gains and losses recognised in the year. The notes on pages 21 lo 42 fomi part of these financial statements.

THE LATVIAN WELFARE TRUST CHARITY STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Income and endowments from: Grants and donlions Other trading activities Investments other income 54,250 39.464 75,000 309.603 15,926 100,000 152,799 Total income in the reporting period 478,317 268,725 Total expenditure from income funds 708,716 828,417 Net expenditure for the year 1228,3991 1559.6921

THE LATVIAN WELFARE TRUST CONSOLIDATED BALANCE SHEET AS A T31 DECEMBER 2023 2023 2022 Notes Fixed assèts Tangible assets Investment property 15 16 10,450,000 882,956 10,458,731 882,956 11,332.956 11,341,687 Current assets Stocks Debtors Cash at bank and in hand 19 20 1,462 22,777 56,090 4,000 53,821 385,519 80,329 443,340 Creditors- amounts falling due within one year 21 1323,5941 1356,6651 Net Current Iliabililiesllassets 1243,2651 86,675 Total assets less current liabilities 11.089,691 11,428,362 Income funds Unrestricted funds- eneral General unrestricted fvnds Revaluation reserve 23 10,339,691 750,000 10,678,362 750,000 11,089,691 11,428.362 11,089,691 11,428,362 The financial slalements were approved by the TJustees on . 26th September 2024 s Kl Zobens East Tn5Stee Company registration number 05853180 17-

THE LATVIAN WELFARE TRUST CHARITY BALANCE SHEET AS AT 31 DECEMBER 2023 2023 2022 Notes Fixed assets Tangible assets Investment propety Investments 15 16 17 11,332,956 11,332,956 100 11.332.958 11,333,540 C¥Jrrent assets Debtors Cash at bank and in hand 20 12,975 20,974 337,263 33,949 337,263 Creditors- amounts falltng due within one year 21 1265,8181 1341,3151 Net current liabilities {231.8691 14,0521 Total assets less current liabilitiès 11,101,Q89 11,329,488 Total nat assets 11.101,089 11,329,488 Charity funds Unreslri¢ted funds 11.101.089 11,329,488 Total funds 11,101.089 11,329,488 26th September 2024 The financial ststemènts wère approved by the trustees on ......................... Ms Kl Zobens East Trustee Company registration number Q5853180 (England and Wales) 18-

THE LATVIAN WELFARE TRUST CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Notes Cash flows from opèrating activities Cash absorbed by operations 25 {645,600) 1616,419) Investing activities Proceeds from disposal of subsidiaries PurGha5e of tsngible fixed assets Proceeds from disposal of tangible fixed assets Investment income re￿iVed 86,876 13,8511 17,5271 5,217 227.929 213,977 Net cash generated from investing activities 316,171 206,450 Financing a¢tivitie5 Proceeds from borro￿ng$ 57,058 Net Gash lused inllgenerated from financing activities 57,058 Net decrease in cash and cash equivalents 1329,4291 1352,9111 Cash and cash equivalanls al beginning of year 385,519 738,430 Cash and Cash equivalents at end of year 56,090 385,519 19-

THE LATVIAN WELFARE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Ac¢ountlng policies Charty inforniation The TNst 1$ 8 company limitèd by guardntee {registered number.. 058531801 which is registered in England and Wales. It registered as a ch?rity on 21 st June 2008 and its charity registration number is 1124661. The registeffd office and principle place of business is Catthrope Manor, Lilboume Road, Catthorpe, Leicestershire, LE17 8DF. The princApal activity is lo relieve finanoal hardship, sickness and poor health amongst Latvian people, to advance the education of the public 8bout the country of Latvi2 and its people, as well as the ed￿￿tIOn of Lafvian people in Latvia and in the UK, and lo ¢onserve, for the benefit of 851 peoples everywhere, ancient and modem buildings, monuments, archives and works of art which are of historical and cultural importance to Latvia and the Latwan people. The charity also org8nise and promote social events and recreational 8¢tivities for the benefit of Latvian people. 1.1 A¢counting convention The financial ststements have been prepared in accordance with the Charities SORP IFRS 1021- Accounting and Reporting by Charities.. Statemént of Re￿mmended Practice applicable to charities p￿paring their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republi¢ of Ireland IFRS 1021 leffective 1 January 20151, the Financial Reporting Standard 8pplic3ble in the UK and Repub15c of Ireland IFRS 1021 and the Companies Act 2006. The Lafvian Welfare Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised al historical cost or transaction value unless otherwisè stated in the reSevant accounting policy. The Consolidated Slalement of Financi81 Activities ISOFAI and Consolidated Balance Sheet consolidate the fin8ncial statements of the Group and ils subsidiary undertakings. The results of the subsidiaries are consolidated on a line by line basis. The Group has tsken advantage of the exerllplion allowed under section 408 of the Companies Act 2006 and has not presented its own Ststement of Financial Activities in thes¢ financial stslements. 1.2 Going concem The Charity and r('s subsidiary Trading UK Limited continued lo make losses in the year. As a result, on 20 September 2023 followd the closure of the Catthorpe Manor business and subsequent Creditors Voluntsry Liquid8tion of Trading UK Limited. The Trustees wmpleted a restructuring of the operations which resulted in two new subsidiaries bèing fomed. one to manage the London business and the other lo manage the Catthorpe estate. This has proved to be the righl decision as both subsidiaries are currenly operating wqth small profit. At the time of approving the flnancial statements, the trustees have 8 r&asonable expectstion that the trust has adequate resour¢&s lo continue in operational existence ft)r the foreseeable future. Thus the trustees continue to adopt the going ¢onc¢m basis of ae¢ounling in prèparing the financial statements. 1.3 Charitsble funds Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitsble objeGbves. 1.4 Income Income is racognised when the trust 15 legally entiued lo it after any perfom8nce conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. -20-

THE LATVIAN WELFARE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policles (Continuèd) Cash donations are recognised on rèceipl. Other donations are recognised once the trust has been notified of the donation, unless performance conditions require deferral of the amount. Income t8x recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised al the time of the donation. Grants are induded in the Consolidated Slalement of Finan¢i81 Acti%ities on a receivable basis. The balance of income received for specifi¢ purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income 15 received in advance of entilement of receipt, r(s ￿cognItIon is deferred and included in creditors as deferred in¢oma. Where entitlement o¢wrs before income is received. the incomÈ is accrued. Included within the incoming resources are the trading income from its trading subsid¥aries, LWT Trading UK Limited, DVF Estate Ltd, DVF London Ltd_ 1.5 Expèrttliture Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third paty, it is probable that a transfer of economic benefits wll be required in setuement, and the amount of the obligation can be measured reliabty. Expenditure is classified by activity. The costs of éach 8etiv(ty are made up of the total of direct Costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single aclivty are 8llocated diredy to that adimty. Shared costs which contribute lo more than one activty and support costs which are not attributable to a single activity 8re 8PPOrtioned between those activities on a basis consistent with the use of resources. Centrnl stsff costs ars allocated on the basis of time spent. and depre¢ialion charges are allocated on the portion of the assèt's use. Expenditure on ¢h8rit8ble activities is incurred on dI￿¢t[Y undertaking the activities which further the Group's objectives, as well as any associated support costs. 1.6 Tangible flxed assets Tangible fixed assets are initi81Iy measured at cost and subsequenuy measured at cost or valuation, nel of depreciats.on and any impaim)ent losses. Depreciation is recognised so as to write off the cost or valu8tion of assets less their residual values over their useful lives on the following bases= Freehold land and buildings Plant and equipment Fi*(ures and fittings Computers Not depreciated 250A on cost 200/0 on cost 33% on cost The gain or loss arising on the disposal of an asset is determined as the drfference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial actiVEties. The freehold propety Catthorpe Manor & 72 Queensborough Terrace has not been depreclaled during the ye8r under review, this is because the freehold property is leased to its trading subsidiary DVF London Ltd from The Latvian Welfare Trust on a long tem lesse and. as pennitted by the Charities SORP {FRS 1021 is treated 8$ an investment propety. The Trust owns various historical works of art and sculptures. These assets were gifted lo the TnJsl and are fully depreeiated. They have the￿fore not been split out as Heritage Assets in the fin8nci81 statements. 21

THE LATVIAN WELFARE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 ArKounting policies (Continued) 1.7 Investment property Investment property, which is propety held to eam rentals andlor for capital appreuation. is initially recognised at cost, which includes the purchase cost and any direetly attributable expenditure. Subsequently It is measureé at fair value at the reporting end date. The surplus or deficit on rev81uation is recognised in profil or loss. 1.8 Impalm?ent of flxed assets At each reporting end date, the trust reviews the carying amounts of ils tangible assets to determ￿ne whether there is èny indication that those assets have suffered 8n impairment loss. If any suGh indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impaiment loss Irf any). 1.9 Stocks Stocks are ststed at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct matenals and, where applicable, direct labour costs and those ovetheads that have been inourred in bringing the stocks to their present location 8nd ¢ondition. Items held for olistribution at no or nominal ¢onsider8tion are measured the lower of replacement cost and cost. Net realisable value is the estimated selling pri￿ less all estimated costs of completion and costs lo be incurred in marketing, selling and distribution. 1.10 Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid iAveslrnents with original maturitie5 of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowngs in current li8bilities. 1.11 Financlal instruments The trust has elected to apply the provisions of Section 11 'Basic Finan¢i81 Instruments, and Section 12 '0ther Financial Instruments Issues, of FRS 1 C12 to all of its financial instruments. Financial instruments are recognised in the trust's balance sheet when the trust becomes paty to the contractual provisions of the instrument. Financial 2ssets and liabilities are offset, with the net amounts presented in the financial slalements, when there is a legally enforceable right to set off the recognised amounts and there is an intention lo settle on a net basis or to realise the asset #nd settle the li8bility simultaneously. Basic financial assets Basic ffnancial 8ssels, which include debtors and cash and bank balances, are ini118lly measured at transaction price including transa¢lion ¢osls and are subsequently c8rried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the presènt value of th& future receipts discounted al a market rate of intèrèst. Financial assets classified as receivable within one year are not amortised. 22-

THE LATVIAN WELFARE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting poliGies {Continued) Basic financial liabilities Basic financial liabilities. incluéing creditors and b2nk loans are inib'ally re¢ognised at transaction price unless the arrdngemenl constitutes a financing transaction, where the debt instrument is measured at the present valLJe of the future payments dis¢ounled at a market rate of interest. Financial liabÉlilitts ¢lass[fi￿ as payable within one year are not amortised. Debt instruments are subsequently carrled 8t amortised cost, using the effective interest rale method. Trade crèditors are obligations to pay for goods or serwces that have been acquired in the ordinary course of opeffttions from suppliers. Amounts payable 8re classrf5ed as current liabilities if payment is due wthin one year or less. If not, they are presented as non-current liabilities. Trade creditors are rècognised inrtially at transaction price and subsequently measured al amortised cost using the effective interest method. Dere¢ognition of financial lfflabilitie5 Financial liabilities are derecognised when the trust's contractual obligations expire or are discharged or canc¢lleé. 1.12 Ernplrjyee benefits The cost of any unused holiday entitlement is re￿)gniSed in the period in which the employee's seNices are received. Termination benefiis are reGognised immediately as an expense when the tnjst is d&monstrabty committed to terminate the employment of an employee or to promde termination benefits. 1.13 Retiremént bènèfits Payments to defined contribution retirement benefrt schemes are charged as an expense as they f211 due. Critical a¢¢ountlng estimates and judgements In the application of the trust's accounting poliues, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are consiéered lo be ￿leVant. Actual results may differ from these estimates. The estimates and undedyng 2ssumptions are reviewed on ¥n onooing basis. Revisions to accountlng estimates are recognised in the period in which the estimate is revised where the revision affects only that period. or in the period of the revision and future periods whÈre the rèvision $ffects both current and future periods. Income from grants and donations Unrestricted funds 2023 un￿StrICted funds 2022 Grants 54,250 12,887 -23-

THE LATVIAN WELFARE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Income from other tradlng activities Unrestricted Unrestricted funds funds 2023 2022 otel, events and Conferen￿ income 1,159,714 1,175,636 In¢ome from investments Unrestrictsd Unrestricted funds fund5 2023 2022 Rental income 227,929 213,977 Other income Unrestricted Unrestricted funds funds 2023 2022 Net gain on disposal of subsidiary Other income CJRS in¢ome 86,876 15,926 335 86,876 16.261 Trading UK Limited went into liquidation on 23rd October 2023. A profil on disposal of the subsidiary of £86,876 has been recognised al this date. -24-

THE LATVIAN WELFARE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Expenditure on raising funds Trading a¢tivities Unrestricted Unrestri¢ted funds funds 2023 2022 Trading costs Cost of sales Administr8tion expenses Interest payable Staff costs Depreeialion and impairment 169,049 8,679 107,236 574,124 287 783,080 28,416 678,209 22,947 1,648.884 1,493.123 Expenditur$ on charitable activitie$ A¢tivities undertaken directly 2023 Activities undertaken directly 2022 Direct Costs Catthorpe Manor charitable activities 198,979 204,910 Share of support and govemanee costs Isee note 9} Support 19.577 94,945 218,556 299,855 Analysis by fund Unrestricted funds 218,556 299,855 Support costs allo¢ated to activities 2023 2022 Finance Other Governan￿ wsls 423 16,811) 25,965 336 63,834 30,775 19,577 94,945 Analysed behveen.. Catthorpe Manor charitable 2Ctivititts 19.577 94.945 25-

THE LATVIAN WELFARE TRUST NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 10 Auditor's remuneration Fees payable to the charivs auditor and associates: 2023 2022 For audit services Audit of the finanoal statements of the charity 23,700 25,350 11 Trustees During the year, no Twslees re￿iVed any remuneratlon or other benefrts12022- £Nill During the year ended 31 December 2023, expenses lotalling £100 were rÈimbLJrsed or paid directly to 1 Trustee12022- £698, 1 Trusteel. The expenses reimbursed in the year re181ed to fuel costs. 12 Employees The average monthly number of employees during the year wa8- Group 2023 Number Group 2022 Number Company 2023 Number Company 2022 Number Management Hotel, events and conference 22 46 24 47 Group 2023 Group 2022 Company 2023 Company 2022 Employment costs Wages and salaThes So¢ial security costs Other pension costs 620,122 45.780 12,307 772,811 54.557 15,125 86,014 8,098 2,305 0,241 2,441 3,931 678,209 842,493 96,416 66,613 The number of employtses whose annual remuneration was rnore than £60,000 is as follows.. Group 2023 Number Group 2022 Number In the band £60,001 - £70,000 The employee benefits of Key M2nagement Personnel amounted to £100,66012022- £81,052). -28-

THE LATVIAN WELFARE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 13 Gains and losses on investments unreStri￿8d Unrestricted funds funds 2023 2022 Gainslllossesl arising on= Revaluation of invastment properties {5,9771 14 Taxation The charity is exempl from tsxation on its activfcies because all ils incorne is applied for charitsblè purposes. 15 Tangible fLKed assets Group Freehold land and buildings Plant and Fixwres atté equTpment ffttings Computers Total Cost Al 1 January 2023 Additions Disposals 10,450,000 2,276 3,160 115,4361 1186,0681 248,830 8.192 10,719,298 691 3,851 18,8831 1210,3871 At 31 Decèmber 2023 10.450,000 62,762 10,512,762 Depr¢¢iation and impairment Al 1 January 2023 Depre¢iation charged in the year Eliminated in respect of disposals 10,712 242,131 551 6,465 (11,2631 I185,￿4) 7.724 260,567 349 7,365 18,0731 1205,1701 Al 31 De￿mber 2023 62,762 62,762 Carrying amount At 31 December 2023 10,450,000 10,450,000 At 31 De¢emb&r 2022 10,450,000 6,699 468 10.458,731 15 Tangible fixed assets Charity Fixtures and frttings Computers Totsl Cost At 1 January 2023 325,127 1,600 326,727 Al 31 December 2023 325,127 1,600 326,727 27-

THE LATVIAN WELFARE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 15 TangÉble fixed assets (Continued) Depreciation and impaimient At 1 January 2023 Depre¢i81ion charged in the year 324,643 484 1,60CI 326,243 At 31 December 2023 325,127 326,727 Carrying amount Al 31 December 2023 At 31 December 2022 484 16 Investment property Group 2023 Fair value At 1 January 2023 ?nd 31 December2Q23 882,956 Charity 2023 Fatr value At 31 January 2022 and 31 Oe¢ambar 2022 11,332,956 72 Queensborough TeTTace was valued on a fair m8rket basis on 3rd March 2022 by Savills, with a valuation of £6,000,QOO being provided retrospectively as at 31 December 2021. Catthorpe Manor was valued al £4.450,000 by Holt Commerci81 al market value on 28 August 2020. The Valuation includes a special consideration regarding the uncertainty of the Current m8rkel as 8 result of the Covid-19 pandemic and reliance was therefore placed on transactions whlch took place prior lo lo¢k down. Includ￿ in the net book value of propety display￿ above are the following aMOu￿ts ascribale to18nd'. Group 2023 Group 2022 Company 2023 Group 2022 Historic cost 4,70Q,000 4.700,000 4,700,000 4,700,000 -28-

THE LATVIAN WELFARE TRUST NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 17 Fixed assèt investments Invèstments in Subsidiary companies Cost or valuation At 1 Janijary 2023 Additions Disposals 100 11001 At 31 December 2023 Carying amount Al 31 December 2023 At 31 December 2022 100 18 Subsidiarias Detsils of the trust's subsidiaries al 31 De￿rnber 2023 are as follows.. Name of undèrtaking Registered offiGe Nature of business Class of sharés held Yo Held Direct Indirect DVF Estate LTD England and Wales England and Wales Operation of a hotel and weddings venu& Oper8tion of 8 hotel and weddings venue 0￿]nary 100.00 DVF London LTD Ordinary 100.00 L￿￿ Trading UK Ltd was a subsidiary of the Ch8r5ty until 23rd October 2023 when it enlerecl liquidation. DVF London Ltd & DVF Estate Ltd are new subsidlades of the Charity that were incorporated on 26th September 2023 and 27th September 2023 rgspectively. 19 Sto¢ks 2023 2022 Stocks 1,462 4.000 -29-

THE LATVIAN WELFARE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2023 20 Debtors Group 2023 Group 2022 Company 2023 Company 2022 Trade debtors Amounts owed by subsidiary undertakings Other debtors Prepayments and accrued income 5.340 14,267 1,520 11,317 11,609 5,828 21,613 17,941 138 22.777 53,821 12,975 21 Creditors= amounts falling due within one year Group 2023 Group 2022 Company 2023 Company 2022 Other loans Oth¢r taxation and social security Trade creditors Amounts owed lo fellow group undertakings Other creditors Accruals 8nd deferrad income 175,000 175,000 175,000 175,000 23,726 53,218 28,314 68,934 2,668 29.410 402 1,800 10,880 37,S80 9,880 149,635 178 14,300 41,295 30,355 62,694 21,723 323,594 356,665 265,818 341.315 Induded in other loans are the following balances outstsnding Kfjth The Lafvian welfa￿ Fund.. Leeds br8nch £175,00012022.. £175,000) 22 Retirement benefit schemes 2023 2022 Defined contribution schemes Charge lo profit or loss in respect of defined contribution schemes 12.307 11,194 The trust operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the trust in an independently administered fund. -30-

THE LATVIAN WELFARE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

23 Unrestricted funds

At 1 January 2023 £ General fund 9,508,492 Revaluation reserve 3,846,807 Funds retained with non- charitable subsidiaries (1,926,937) 11,428,362 Previous year: At 1 January 2022 £ General fund 9,758,884 Revaluation reserve 3,852,784 Funds retained with non- charitable subsidiaries (1,802,892) 11,808,776	Incoming resources £ 86,876 - 1,441,893 1,528,769 Incoming resources £ 49,463 - 1,369,078 1,418,541	Resources expended £ (218,556) - (1,648,884) (1,867,440) Resources expended £ (299,855) - (1,493,123) (1,792,978)	Gains and losses £ - - - - Gains and losses £ - (5,977) - (5,977)	At 31 December 2023 £ 9,376,812 3,846,807 (2,133,928)
				11,089,691
				At 31 December 2022 £ 9,508,492 3,846,807 (1,926,937)
				11,428,362

24 Related party transactions

Transactions with related parties

Transactions with the subsidiary companies are set out below.

The loan balance outstanding at the year end owed from LWT Trading UK Limited was £4,645,742 (2022: £4,384,330). An additional provision of £395,476 has been recognised against this balance at the year end in the Charity (2022: £562,099).

The trading balance outstanding at the year end owed to LWT Trading UK Limited was £Nil (2022: £149,636).

Rents receivable from LWT Trading UK Limited Interest receivable from LWT Trading UK Limited	2023 £ 75,000 309,603 384,603	2022 £ 100,000 152,799
		252,799

• 31 -

THE LATVIAN WELFARE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

24 Related party transactions

(Continued)

The Trust was owed £11,317 from DVF Estate Ltd at the year end.

The Trust owed £10,880 to DVF London at the year end.

During the year, M Vizbulis, who is a Trustee, resided in one of the properties owned by the Trust and paid rent totalling £14,720 (2022: £13,920). There were no outstanding balances as at the year end (2022: £Nil).

During the year, the Trust made purchases totalling £Nil (2022: £1,403) from Amber Food and Catering Ltd, a company of which M Vizbulis is also a director. There were no outstanding balances as at the year end (2022: £Nil).

During the year, the Trust received £Nil (2022: £13,690) from Berzes Strazdi, an entity of which G Lerhs is also a director, in relation to the Midsummer Festival. At the year end, a balance of £Nil (2022: £13,050) was owed from Berzes Strazdi to the Trust.

The Latvian Welfare Fund is considered to be a related party as the board of trustees is selected from its membership in accordance with the Trust's Memorandum and Articles as amended in November 2014.

Transactions with The Latvian Welfare Fund are listed below along with the outstanding balances at the year end.

	Amounts owed to	related
	parties
	2023	2022
	£	£
Leeds branch loan outstanding creditor
balance	175,000	175,000
Leeds branch loan interest paid	5,658	5,658

In addition, the Latvian Welfare Trust receives rental income from two properties which are owned by The Latvian Welfare Fund. Total rental income received during the year is £Nil (2022: £19,500). There were no outstanding balances as at the year end (2022: £Nil).

A provision of £Nil (2022: £42,058) has been made against amounts due from The Latvian Welfare Fund.

During the year, £37,500 was transferred into the Latvian Welfare Trust from 2 Trustees that both resigned on 9th March 2024. This balance was still outstanding at the year end.

• 32 -

THE LATVIAN WELFARE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2023 25 Cash generated from operations 2023 2022 Deficit for the year 1338,6711 1380,4141 Adjustments for.. Investment income recognised in ststement of financial activities Gain on disposal of intsngible assets Fair value gains and losses on investment properties Depreciation and impaimient of tsngible fixed assets 1227.9291 186,876) 1213,9771 5,977 10,578 7,365 Movements in working capital.. Decrease in stocks Dèerèaséllincre8sel in debtors (Decrease) in creditors 2,538 31,044 133,0711 3,500 110,5111 131,5721 Cash absorbed by operations 1645,600) 1616,4191 26 Analysis of ¢h8nges in net debt At l Januzry Cash flows At 31 0È¢¢mb¢r 2023 2023 Cash al bank and in hand 385,519 1329,4291 56.090 Loans falling due wthin one year 1175,0001 1175,0001 210,519 1329,4291 1118,9101 27 Auditorfs liability limitstion agreement Upon appointment of Cottons AccotJntanls LLP as auditors, thé comp8ny entered into a liabilty limitation agreement with thè auditors and this was approved by resolution of the members on 23rd May 2024. Liability is limited to the lesser of 20 times the audit fee or £395.000. In accordance with section 537 of Companies Act 2006, if the effect of the liability limitation agreement is to limit the audttorts liability to less than such amount as is fair and reasonablè as dètermined by that section. thè agreement shall have effect as rf il limited the liabillty lo such arnount as is fair and reasonable, as $0 determined. The agreement limits the liability owed to tha company by the auditors in respect of any nogligence. default, breach of duty or breach of trust occurring in respscl of the audit of the financial statements for th8 year ended 31st December 2023. The agreement does not limit liability for any instance of fraud or dishonesty on behalf of the auditor or any other liability that cannot be excluded or restrict&d by applic8ble18ws and ￿$1￿ctions. 33-