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 signifintlY 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 maintanIng of the London and Catthorpe centS 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 histori1
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 $eveIY 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 $ever81 function
rooms and outbuildings, most of which were leased out to it subsidiary trading company, LWT Trading UK Ltd.
The Catthorpe centre provide5'.
Sheltered accommodation for elderfy Lafvians.
Rented rooms, apartments, and houses for those wanting to live in a L8tvian community.
Library and doeumèntsry arehive about Latvians in the UK, used by professionals trom Lafvia.
Cultural a¢tivzties'. Home to a Lafvian choir, folk dancing tmupes, and a folklore ensemble.
Children's summar camps for Latvian and Estonian communities.
Traditional functions and gathèrings f8cililies.
Function rooms, hotel. and barfor community use and public hi for events like weddings and
conferenGes.
THE LATVIAN WELFARE TRUST
TRUSTEES, REPORT {INCLUDING DIRECTORS. REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
The Loftdon centre provides-
Guest house and Central London venue for Latvian social and traditional activities.
Library and social Club.
Accommodation for Latvian students and paying guests.
Facilities for Latvian Sunday school and language classes.
Meéting place for Latvian business groups, including th¢ Latvian Chamber of Commerce.
This centre serves as a vibrant hub for the Lafvian community, offering a wide range of seThices 8lld fa¢iliti8s.
Both Centres also:
Host guests from the Latvian parli&m&nl 8nd proviiye the opportunty for Lafvran natponals to meet with
government representatives.
Provide funclion moms to hold annual general meetings or similar gatherings for other Latvian community
organrsétions groups.
Provide a function room and fscilities for the Lalvian folk d8ncing groups and choir. as well 8$ 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 setp 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 Signifince.
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 ppIe 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 Latr1¥ 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 inme. 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 pparing 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 01CloTS 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 tM 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 Signifint 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 finanal 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 I0 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 stratY 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 tstee 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 Dember
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 firn¢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 Ap1s 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 prePad 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. expt 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 reiVed 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 Inspecting181 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 sUsptib11ty 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 reiVed
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 borrong$
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 edtIOn 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 Remmended Practice applicable to charities pparing 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 thefore 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 determne 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 $ffects both current and future
periods.
Income from grants and donations
Unrestricted
funds
2023
unStrICted
funds
2022
Grants
54,250
12,887
-23-
THE LATVIAN WELFARE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Income from other tradlng activities
Unrestricted Unrestricted
funds
funds
2023
2022
otel, events and Conferen income
1,159,714
1,175,636
In¢ome from investments
Unrestrictsd Unrestricted
funds
fund5
2023
2022
Rental income
227,929
213,977
Other income
Unrestricted Unrestricted
funds
funds
2023
2022
Net gain on disposal of subsidiary
Other income
CJRS in¢ome
86,876
15,926
335
86,876
16.261
Trading UK Limited went into liquidation on 23rd October 2023. A profil on disposal of the subsidiary of
£86,876 has been recognised al this date.
-24-
THE LATVIAN WELFARE TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Expenditure on raising funds
Trading a¢tivities
Unrestricted Unrestri¢ted
funds
funds
2023
2022
Trading costs
Cost of sales
Administr8tion expenses
Interest payable
Staff costs
Depreeialion and impairment
169,049
8,679
107,236
574,124
287
783,080
28,416
678,209
22,947
1,648.884
1,493.123
Expenditur$ 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 reiVed 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
unreStri8d 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 Dember 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 aMOuts 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 Dernber 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 $1ctions.
33-