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← Welsh Guards Charity

2024-03-31-accounts

WELSH GUARDS CHARITY

REPORT AND FINANCIAL STATEMENTS

31 MARCH 2024

WELSH GUARDS CHARITY

CONTENTS

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WELSH GUARDS CHARITY

TRUSTEES AND ADMINISTRATIVE INFORMATION

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|||||||||| |---|---|---|---|---|---|---|---|---| |Trustees|Chairman — Brigadier G R Harris DSO OBE|(Chairman)| |Captain R S Mason| |Captain B M H|Branston| |S|C|Rhodes|Esq| |Captain|T|C|MacDonald-Milner| |J AJ|Price Esq| |Mrs M Bowen| |Captain R A|J Forrest| |Captain P W H|Craig-Cooper| |Captain O G|James| |Lieutenant|Colonel|C|K|Antelme|DSO| |Regimental Adjutant|Colonel|T C|S|Bonas|(until|18|June|2023)| |and|Secretary|Lieutenant|Colonel G|Bartle-Jones|(from|19|June|2023)| |Regimental Welfare|Major M E Browne BEM| |and|Finance|Officer| |Address|Regimental|Headquarters| |Welsh|Guards| |Wellington|Barracks| |Birdcage|Walk| |London| |SWIE 6HQ| |Investment|managers|Rathbones| |30|Gresham|Street| |London| |EC2M|7AZ| |Bankers|Lloyds|Banking|Group|Plc| |Cox’s &|King’s| |PO|Box|1190| |7|Pall|Mall| |London| |SWLY|SNA| |Auditors|Shaw Gibbs|(Audit) Limited| |Statutory|Auditors| |Wey|Court West| |Union|Road| |Farnham| |Surrey| |GU9|7PT| |Registered|charity number|1152766|(England &|Wales)|

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WELSH GUARDS CHARITY TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024

The Trustees are pleased to present their report and financial statements of the charity for the year ended 31 March 2024. This report is prepared in accordance with the recommendations of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019) — Charities SORP (FRS102)

Structure, Governance and Management

The Charity was formed by a scheme of the Charity Commission on 29 May 2013 and was registered with the Commission on 8 July 2013.

The Charity was formed to take over the net assets and activities of the Welsh Guards Comforts Fund, The Welsh Guard Welfare Fund and other charitable funds related to the Welsh Guards regiment.

The trustees are responsible for the management of the charity. New trustees are recruited from serving or retired members of the Regiment, or their wives/partners and candidates are chosen because they have particular skills and experience which complement those of existing trustees. New trustees are briefed by the Regimental Adjutant and the Chairman on joining. Training, which is appropriate to the activities of the Charity, including attendance at seminars, is provided for trustees. The trustees meet twice a year when policy concerning the charity is discussed and decisions made.

The trustees during the year were:

Brigadier G R Harris DSO OBE (Chairman) Captain R S Mason Captain B M H Branston S C Rhodes Esq Captain T C MacDonald-Milner J AJ Price Esq Mrs M Bowen Captain R Forrest Captain P Craig-Cooper Captain OG James Lieutenant Colonel C K Antelme DSO

The offices of the Charity are based in Regimental Headquarters Welsh Guards which is a Ministry of Defence (MOD) establishment and the key management personnel, who are both civil servants employed by the MOD, comprise the Regimental Adjutant and Treasurer, therefore neither office accommodation nor staffing incur any cost to the Charity. Both the Regimental Adjutant and Treasurer were paid honoraria by the charity as discussed and agreed upon by the Trustees on the advice and recommendations of their Remuneration sub-Committee.

The Charity has four funds:

General Purposes Fund

This is an expendable endowment fund, the income of which can be used for general purposes.

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WELSH GUARDS CHARITY TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024 (CONTINUED)

Welfare fund

This is a permanent endowment fund the income of which can only be used for welfare.

The Band Fund

This is an expendable endowment fund the income of which can be used both for the Band and for the efficiency of the Armed Forces (i.e. Welsh Guards) if so wished.

Welsh Guards Afghanistan Appeal Fund

This fund is an expendable endowment fund the income of which can be used only for the purposes of the Appeal.

Objectives and Activities

The objectives of the charity are:

  1. To promote the efficiency of the Welsh Guards, by fostering Esprit De Corps and by such other means as the trustees shall from time to time determine.

  2. To commemorate and remember those members, or former members, of the Welsh Guards who have lost their lives, suffered injury or put themselves at risk of loss of life or injury, in service to the public.

  3. To relieve either generally or individually persons who are serving or who have served in the Welsh Guards or the dependents of such persons who are in conditions of need, hardship or distress.

  4. To advance the education of the public, including members of the Welsh Guards, in the history, deeds, traditions and role of the Welsh Guards.

Grant making policy and public benefit

The Trustees confirm that they have paid due regard to the guidance contained in the Charity Commission General Guidance on Public Benefit when reviewing the Charity’s aims and objectives and when planning future activities and setting grant making policies. The Charity provides public benefit by enhancing the morale and efficiency of serving service personnel to more effectively perform their role within the Regiment, supporting comradeship within the wider Regimental family (regular, reserve and retired), and providing benevolence to individuals and their families when and where there is a need.

Taking the Charity Commission's guidance into consideration, the Trustees are satisfied that the public benefit requirements have been met and that the Charity makes grants within the parameters of its charitable objectives listed above.

As a matter of principle, assistance to former members of the Regiment and their families is normally given through welfare organisations rather than by direct grant. Applications for assistance are usually routinely supported by a Royal British Legion or a SSAFA report. The Regimental Veterans Officer (RVO)! is in constant liaison with welfare agencies and, if assistance is not available from Regimental funds, he can often help by directing the application to a charity which might be able to assist and also by ensuring that applicants are at least receiving all the benefits to which they may be entitled.

' The RVO, an ex-Welsh Guards Warrant Officer whose employment is fully funded by the Welsh Guards Charity.

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WELSH GUARDS CHARITY TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024 (CONTINUED)

Similarly, requests for assistance from serving members of the Regiment must be supported by their Commanding Officer and in most cases, grants will be paid through him.

Bids for major grants are normally considered by Trustees at the March meeting annually when the detailed forecast of income and expenditure is presented. Exceptionally bids may be considered out of committee.

Turbulence — Ukraine, the Cost-of-Living Crisis and other factors

Our charity and its people, like the rest of the population, is not sheltered from the turbulence created by world events. As the war in the Ukraine continues to put further pressure on prices, particularly energy and food, the Houthi rebel attacks on cargo ships in the Red Sea are adversely affecting UK retailers and exporters, resulting in higher prices on the high street and tensions in the Middle East are on a knife edge. Our Trustees remain mindful of this and that the cost-of-living crisis will continue to affect the day to days lives of our people which may still result in additional calls on our charitable funds for welfare and benevolence purposes in the coming year.

At atime when the Ministry of Defence (MOD) core budget faces a reduction, there is a real concern that activities which have in the past been funded by the MOD, will in future fall to Regimental Charities to help fund to maintain a sense of adventure and work/life balance to retain our highly trained and skilled soldiers. This, combined with the inevitable Civil Service Manning review, which comes with any budget cuts, could have an adverse effect on our charity and the manpower decicated to running it on a daily basis. The Trustees are aware that should a Civil Service review result in establishments being altered and posts removed due to, what are termed, “service efficiencies”, then the charity will potentially need to look at funding/employing somebody to fill any vacancy and that may draw funds away from other charitable activities.

Achievements and performance

The Welsh Guards Charity has continued to fulfil the objectives of the charity through making grants in accordance with the above grant making policy. Details of expenditure are given in the notes to the financial statements. The success and impact of the charity’s activities are assessed in many ways including feedback from the Commanding Officer to the Trustees at their meetings, detailed reports by the Regimental Veterans Officer on Welsh Guardsmen and their relatives, many of whom have been helped by the charity and with the various entries within our Charity Impact Report (sample pages from our latest Impact Report giving examples of our Esprit De Corps, Welfare and Heritage activities are at Appendix A). In addition, our annual Regimental Magazine, a 250-page glossy publication which is provided free of charge to serving personnel and is available to purchase by our veterans, contains many examples of our charitable activities and funding.

Fostering Esprit De Corps

In financial year 2023/2024, the Charity Trustees granted 1" Battalion Welsh Guards access to grants worth £140,000 in order to promote the efficiency of the Welsh Guards and foster Esprit de Corps, mainly through sports and adventurous training activities. Unlike the previous three years when activity was curtailed due to the Covid Pandemic and then operational deployments, in 2023/24 the Battalion was able to use over 86% of the allocated grant and so in addition to receiving their income from investments of £21,846, 1" Battalion Welsh Guards also received grants to the value of £115,337 with an additional amount of £5,000 from the welfare fund specifically to benefit the welfare of families of our serving soldiers.

Wider Regimental and Household Division Esprit de Corps activity has been wide ranging and far reaching, and all has been aided with grants from the charity. Examples of such activities are sponsorship of the

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WELSH GUARDS CHARITY TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024 (CONTINUED)

Regimental Colonel-in-Chiefs Golf Cup teams (£3,050), support to the Regimental St David’s Day event in Windsor (£29,762), provision of Regimental leaving presentations on completion of 22 years’ service (£2,600), Annual Grant to the Guards Museum (£1,000), grant towards the cost of the RFA Sir Galahad Survivors reunion lunch (the first one in 42 years) in Cardiff (£6,000), a memorial event to remember Major Jimmy Stenner MC, who was killed in action, received a grant of £500, the Welsh Guards pensioners at the Royal Hospital Chelsea received free tickets to the King’s Birthday Parade (£180) and the traditional Christmas gift (£25 per pensioner) and £466 was spent on providing hampers for those Welsh Guardsmen on duty at the Royal Palaces on Christmas Day.

Welfare and Benevolence

The charities single most impactful and enduring initiative is the continued funding of the employment of our Regimental Veterans Officer (RVO), Mr J Myers MBE, who provides welfare support and advice to any of our people that may need it. Now in his eleventh year, he is hugely experienced, trusted by everyone and is a real tangible asset to the charity. Such his depth of knowledge that he is able to access funding from a whole host of other areas and advise and make sure that our veterans and their families are receiving the correct benefits which they might be entitled to. His database of regimental casualties, those he has helped or is helping now contains the details of 256 of our veterans. The Trustees are conscious of their responsibility towards him and his own mental health and wellbeing and fund monthly clinical advice and guidance sessions for him with one of the country’s top consultant psychotherapists who provides guidance and advice as necessary.

Via the RVO, the charity received 48 individual benevolence requests for financial support grants, of which only 16 met our charitable objectives and attracted funding of over £12,000 to the Army Benevolent Fund, Royal British Legion and SSAFA? the Armed Forces Charity in support of our people. Those individual cases which did not meet our charitable objectives were diverted towards charities and help from elsewhere. These individual grants vary in amount and requirement and are for items such as white/brown goods on setting up a home, helping settle priority debts, help to fund mobility scooters, home adaptions, cost of living grants, essential clothing etc. In addition, we made our annual grant to the Army Benevolent Fund of £5,000 and have sponsored respite breaks and professional counselling of two children whose Father was killed on operations. We have assisted BLESMA, The Limbless Veterans in providing a bicycle adaption (£2,000) for one of our Afghanistan veterans to partake in cycling events, provided a grant for another veteran, from the Falklands War, towards his bathroom/wet room adaption (£2,000) and we supported Blind Veterans UK with a grant to enable a Blind Welsh Guards veteran take part in a paralympic archery competition.

Heritage and Education

One of our core educational and heritage activities is the participation of veterans and serving personnel in Battlefield Tours and we were delighted to be able to subsidise both the Regimental Battlefield Tour to study the actions in Galipolli, Turkey and the Welsh Guards Association Battlefield Tour to Hechtel, Arras, Passchendaele and many more regimentally significant areas in Europe. Both tours are extremely popular, and the subsidy provided by the charity ensures that both tours represent excellent value for money for those attending and ably demonstrates the desire to remember our fallen and to ensure their sacrifices are never forgotten.

A grant of £1,156 was made to fund a small regimental party from the Battalion to represent the Regiment at the annual St Charles de Percy memorial event in Normandy, France, remembering those Welsh Guardsmen who died there. We continue to support the Welsh Guards Collection (Museum) located at Park Hall in Oswestry, Shropshire and in 2023/24 paid £9,245 towards the expenses of the volunteers and Curator who all

2 Soldiers’, Sailors’and Airmens’ Families Association.

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WELSH GUARDS CHARITY TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024 (CONTINUED)

do such a wonderful job maintaining and promoting the collection and in talking to the many visitors. Some 20,000 people visit the Collection each year which does much to promote our heritage and educate the wider public about the Regiment.

Remembrance is of the utmost importance and significance to our charity and aside from funding the annual Regiment Remembrance Day event in London each year, we also fund the many poppy wreaths laid at various memorials throughout Wales as well as the annual Regimental Field of Remembrance plot and crosses at Westminster Abbey. In 2023/24 the charity also funded, at a cost of £1,350, a Falklands Islands 1982 steel memorial bench which will be located alongside the Welsh Guards Memorial at Fitzroy in the Falklands Islands. This memorial is visited each year by groups of Welsh Guards veterans, whose first return trip to the Islands is subsidized by the Welsh Guards Charity. In 2023/24 funding of £10,000 was provided to hold an exhibition of the paintings of Rex Whistler. 2Lt Rex Whistler, a renowned artist before the war, served in the Welsh Guards and was killed in action, in Normandy on 18 July 1944. The Regiment holds a collection of his regimentally significant paintings, valued at over £400,000, and the collection is located in the offices of Regimental Headquarters in Wellington Barracks. An exhibition was held over three evenings in the State Apartments in the Royal Hospital Chelsea to both commemorate his death 80 years ago, and to enable access to his work to those who would not normally be able to view it.

Communication

In early 2017, the Trustee’s took the decision that the Charity needed to raise its profile to become better known and, in so doing, achieving our charitable objectives better. As a result, it was decided to produce an annual Charity Impact Report and to establish a standalone Charity website. The Charity has now produced eight Impact Reports, and these are promulgated widely within the Regiment and can be viewed online on the Charity website. The Welsh Guards Charity website was launched in September 2017 and has been a huge success. It is a valuable forum in which the Charity is able to post events and keep people abreast of the Charity’s work. It attracts around 8,000 worldwide visitors each month and is an online signpost for anyone requiring information or help from the Welsh Guards. It can be viewed at www.welshguardscharity.co.uk.

Trustees’ responsibilities

Charity Law requires the Trustees to prepare financial statements for each financial period which give a true and fair view of the Charity’s financial activities during the period and of their financial position at the end of the period. In preparing those financial statements, the Trustees should follow best practice and:

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and which enable it to ensure that the financial statements comply with applicable law. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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WELSH GUARDS CHARITY

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024 (CONTINUED)

Financial review

At the March 2023 meeting the Regimental Trustees forecast and authorised expenditure of over £670,000 for FY 2023/24 based on an estimated income of around £469,000. This income is primarily based on income from investment, which was forecast by Rathbones as being around £280,000°, the Day’s Pay Scheme’, any donations or fundraising there might be and personal contributions from those attending organised regimental events. With cash at bank across all funds totalling over £157,000, this was considered sufficient to make up any deficit in expenditure there might be.

Supporting 1* Battalion Welsh Guards is one of the charities largest expenditures and highest priorities each year and in 2023/24, unlike the previous few years due to Covid and operational deployments, the Battalion was able to spend the majority of the £140k grant allocation it received. The grant assisted greatly in the welfare of the soldiers and their families, subsidized adventurous training and sports and was instrumental in a variety of esprit de corps activities. In addition, several smaller in-year grants helped fund; ten members of the Battalion attend the Regimental Battlefield Tour to Galipoli (£16k), a subsidy towards the luncheons following the Battalion Trooping their Colour on the King’s Birthday Parade (£3k) and funded the purchase of WG branded notebooks to be used on the Ryan Jones led Battalion Leadership Day (£1.3k).

Income and Expenditure Sample Benchmarking. Conscious that their spending decisions are made based on future assumed income and expenditure, the Trustees, in an effort to identify best practise, regularly scrutinise the data and have this year included a small sample of benchmarks from both income and expenditure as examples of the nuances involved with this forecasting:

Income

Expenditure

3 Income from investment for 2023/24 was eventually £284,340.

4 The Regimental Trustees continue to be particularly impressed by our serving personne] who support the charity by voluntarily signing up to the Day’s Pay Scheme which donates one day’s pay a year (paid at a rate of 1/12 monthly). The uptake, currently at over 99.5% is consistently high and for 2023/24 achieved an income to the charity of over £74,000.

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WELSH GUARDS CHARITY

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024 (CONTINUED)

which was not previously planned for, spending was increased to £28,000 (£27,000 of that was for the marquee).

The detailed results of the Charity’s activities are shown on the attached statements of financial activities.

Fundraising

The Trustees are aware of their responsibilities under the Charities (Protection and Social Investment) Act 2016 and have considered the implications of their fundraising activities. We are most fortunate that all fundraising activities for the Welsh Guards Charity are carried out by volunteers and the Welsh Guards Charity does not use any professional fundraisers or have any commercial participators.

No complaints relating to fundraising activities have been received by the Welsh Guards Charity during this financial period, however, the Welsh Guards Charity has procedures in place that would be followed in the event of a complaint being received with the initial response being the responsibility of the Regimental Adjutant. Any continuing issues would be passed to the Regimental Trustees to determine what further action might be required.

Risk management

The Trustees have due regard for the principal areas of the Charity’s operations and the major risks which may arise in these areas. In their opinion, the Charity has established resources and review systems which, under normal conditions, should allow the risks identified by them to be mitigated to an acceptable level in their day-to-day operations. The three principal risks facing the Welsh Guards Charity identified by the Trustees are:

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WELSH GUARDS CHARITY TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024 (CONTINUED)

To mitigate the risk of the charities investments failing, a Financial Investments sub-Committee (FIC) comprising of Trustees with a wealth of experience in financial services meets regularly to monitor the performance of the fund managers and to communicate any concerns with them. The risk of inappropriate expenditure is covered by authorisation procedures, in-year quarterly reports sent to all Trustees detailing income and expenditure for the given quarter and a review of detailed management and year-end accounts by Trustees.

The Regimental Trustee’s carried out a review of their risks in April 2024 and a revised and updated Risk Policy document was issued to replace the previous Risk Policy document dated 4 Oct 22. The Risk Policy document incorporates, as advised by COBSEO’, a whistleblowing and complaints procedure which is available for all on the Welsh Guards Charity website.

Investment policy

The Welsh Guards Charity investments used to be held in the Welsh Guards Common Investment Fund. On 9th May 2014, all investments were transferred to the Charity and the Common Investment Fund was wound up. Our investments were then managed by Newton Investment Management until May 2019 when they were transferred to Rathbones Investment Management. The reason for changing from Newton to Rathbones was that the Rathbones business model, as well as providing effective, discretionary management of the main portfolio, also provides execution only portfolios which enable reserves to be invested in bear market funds like Troy Trojan or Ruffer. These are protective in bear markets and provide the liquidity to cover essential expenditure in the event of a failure of dividend income or total returns in the main portfolio.

This is different to Newton and similar fund managers like CCLA, who, although their overall performance may be very competitive, provide everything through closed funds and cannot provide flexible asset allocation between high risk/reward and low/risk reward funds, which is done by Rathbones in discussion with the Welsh Guards Trustees Investment Sub Committee. This asset allocation flexibility enables the Charity to ensure that it has sufficient reserves to cover essential expenditure in the event of a drop in investment income and returns and where possible maximise investment returns and growth in bull markets.

In recent years our investment income has been primarily provided by dividends and interest rather than total returns as share price performance has been reduced since 2021. However, Rathbones will likely now be able to focus more ona total return-based income solution, although it is not yet as strong as in the period from 2009 until 2019 when the annual total return was 9% (which allowed us to spend 5% of the portfolio value whilst being able to reinvest 4%, which made a huge difference to our future valuation and income).

We have seen 3 years of growth in our Net Asset Value compared to inflation, and we have exceeded inflation but that is mainly due to the 23.7% growth back in 2020-21 and since then our investments have underperformed when inflation was at the 10%+ and marked time when inflation was around 4%. This situation should improve now that inflation is back to around 2-3%.

Reserves

With cash & investment holdings of £8.3m° at the end of FY 2023/24 the Trustees believe there will be sufficient cash available to fulfil our charitable objectives in the coming year but are aware that they may,

5 The Confederation of Service Charities. ® Comprising £8,102,921 invested with Rathbones and £199,655 cash across all accounts.

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WELSH GUARDS CHARITY TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024 (CONTINUED)

potentially, have to release a portion of our reserves from capital to fulfil all spending commitments. Expenditure patterns within the charity are such that with careful planning and execution and by constantly reviewing our spending requirement, our particularly detailed forecasts of income and expenditure should have captured all known [anticipated] expenditure and there should be few surprises.

The amount held in reserve when compared to our running costs, equates to funding around 12 months of total expenditure without having to rely on any funding from elsewhere’. The primary purpose or having this reserve fund is to ensure that if dividends fail and the market crashes, we can still fund essentials such as salaries and other mandatory spending obligations, without having to sell shares at a loss. The value of the investments in the No2 account portfolio, combined with the total cash held in the various fund accounts held in Lloyds Bank, is expected to be held in reserve by Welsh Guards Charity for contingency purposes®.

When the reserve fund was set up in 2020 gilt and bond yields were minimal and it was prudent then to invest in a fund called Troy Trojan. The trojan fund is highly defensive in a bear market but in a normal or bull market its yield is much lower than other equities and bonds and it underperforms. A year ago, Rathbones was instructed to move £450k, (50%), from the reserve portfolio back to the main account for them to invest in gilts or equities. This has helped the overall income and has also increased the valuation of the £450k.

The Trustees’ policy has always been and remains to maintain a level of reserves sufficient to provide a stable base for the Charity’s continuing activities while at the same time ensuring excessive funds are not accumulated. The Trustees believe that the reserves are sufficient for its current purposes, and these are reviewed on a regular basis.

The Financial Investments Sub committee recommended to the Trustees to keep the balance of the reserves in the No 2 account rather than transferring it to the main account as this would make it easier to monitor the reserves and to release them to spend on essentials if absolutely necessary. They would also be readily available to offer them to Rathbones to invest in the market if a big investment opportunity arises as was the case after covid.

Future plans

The Trustees have a reasonable expectation that the Charity has adequate resources to continue with planned expenditure for the long-term and the Charity plans to continue to fulfil its objectives through making grants in accordance with the terms of its funds with the ability to do so depending on the performance of the investment portfolio, the continued uptake of the Day’s Pay Scheme by our serving personnel and the enduring wonderful support of our fundraisers and donors.

The Trustees are keen to ensure that in the future a greater percentage of our expenditure is provided from investment income and returns which would reduce our reliance on donations and other fund-raising activities whilst ensuring that our essential expenditures could be met. The usual minimum investment return is around 3.5% which would mean a portfolio of £10m would provide average investment income of £350k against the current expenditure of £460 to £580k (ideally this investment income would be even more using total return strategy in a bull market and cover nearly all anticipated expenditure).

Looking forward, as we see the MOD being squeezed to make savings, the call on our charity funding could increase exponentially to cover any shortfall in MOD funding. We are also mindful of the turbulent times we live in with the prospect of any future combat activities involving Welsh Guardsmen potentially resulting in a much-increased call on our welfare support systems. It is prudent to consider these factors now and increase

7 Be that Day’s pay Scheme income, donations or fundraising. * Cash which could be accessed if the Welsh Guards Charity requires amounted to £573,369 at 31 March 2024, which equates approximately to 12 months running costs.

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WELSH GUARDS CHARITY

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2024 (CONTINUED)

the amount of our investment income by growing our capital base at a time when we are under less serious expenditure pressures.

Growing our investment portfolio from £8.7m to at least £10m will need a 15% growth in addition to the funds we draw down as investment income and this is seen as a target amount for us to aim for to ensure that going forward the Welsh Guards Charity is able to look after its people as best we can.

Approved by the Board of Trustees and signed on its behalf

Jj Captain R § Mason Trustee

Dated

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Appendix A - extract from Impact Report 23-24 ; lS EEE How we help - Welfare and Benevolence [ureresulting the periodin over £12,000 covered bybeing this reportprovided. (2023-24),Most, if the not Welshall, of the Guards needs Charity assessments has receivedfor these 48 requestsrequests forare individualcarried financialout independently support grantsby either SSAFA or RBL Caseworkers, whilst serving soldiers and their families apply through the Unit Welfare Officer (UWO). All requests are treated in the strictest of confidence, with our grants supporting veterans and families in need when no other means of funding is available. In total, over £85,000, around 13% of our total charity expenditure has been spent on welfare. We donate £5,000 each year to the Army Benevolent Fund to assist them in their work, give the Battalion a large welfare grant to spend on the families and have also committed to fund four Warrior Equine Courses this year (Warrior Equine offer equine-assisted coaching courses to support those who have experienced severe psychological trauma). The following are just a few examples of the assistance provided over the last 12 months:

We helped helped individuals who had fallen who had fallen had fallen fallen on hard times to attend times to attend to attend attend the Galahad [Survivors] Reunion Lunch in Cardiff. The first such meeting in 42 years. 42 years. years. Funding is provided for ongoing child ongoing child child counselling sessions for a child whose child whose whose Father was was killed in action.

We helped helped individuals who had fallen who had fallen had fallen fallen on hard times to attend times to attend to attend attend the An elderly disabled veteran was provided a grant to help Galahad [Survivors] Reunion Lunch in Cardiff. The first such towards the costs of a shower room adaptation. meeting in 42 years. 42 years. years. Eight low-income veterans were provided with grants to help Funding is provided for ongoing child ongoing child child counselling sessions for purchase essential household items where no others means of a child whose child whose whose Father was was killed in action. funding were available. A grant was grant was was provided for a disabled a disabled disabled Falklands Veteran to have have ABlind Welsh Guards Veteran was provided with a grant to adaptations made to his property to to improve his quality of life where where contribute towards the cost of attending an archery sporting event to no funding could be obtained from elsewhere. help improve his mental health. A disabled veteran was provided with a grant towards the Throughout the year Ex-Spouses of Welsh Guardsmen have purchase of a wheelchair suitable for his needs and another been provided with grants to purchase essential household items. disabled veteran was provided a grant to purchase a riser disability aid chair to improve his quality of life. An Afghanistan veteran from Op HERRICK, who sustained REGIMENTAL VETERANS OFFICER life altering injuries was provided with a large grant to purchase an After the disruption due to COVID19, the RVO’s home visits are E-Assist Hand bike, so that he can participate in activities to improve now thankfully back to normal. Many Veterans have struggled his mental health. with their mental health during the pandemic, due to loneliness A Northern Ireland veteran was provided with a grant to — and so the RVO’s home visits are a welcome morale purchase essential clothing on his release from custody. ; Home, local, hospital or care home visits are conducted to = discuss any welfare welfare issues or concerns concerns that they may have. 3 Some visits are just just for a friendly a friendly friendly chat and to update and to update to update update on Regimental events etc. Other visits can be quite complex and 4 require referrals to specialist organisations. The RVO RVO will carry out ’ — the referral and keep in touch touch with the Veteran Veteran throughout any therapy or treatment.

A grant was grant was was provided for a disabled a disabled disabled Falklands Veteran to have have adaptations made to his property to to improve his quality of life where where no funding could be obtained from elsewhere.

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= discuss any welfare welfare issues or concerns concerns that they may have.
3 Some visits are just just for a friendly a friendly friendly chat and to update and to update to update update on
Regimental events etc. Other visits can be quite complex and
4 require referrals to specialist organisations. The RVO RVO will carry out
’ — the referral and keep in touch touch with the Veteran Veteran throughout any
therapy or treatment.
The RVO also attends monthly meetings with the NHS Veterans
Therapists and major Service Charities to discuss cases.
Veterans’ issues and concerns are also passed on to the relevant
authorities and the Chain of command if required.
- 4 The RVO is always available to confidentially discuss any welfare
issues or concerns that you may have. Please feel free to contact
¢ him at any time. If required, a private home/ Local visit can be
arranged.
If you or you know someone who requires support or advice from
1, Warrior Equine courses being run at 2 the RVO, please contact him on:
Combermere Barracks, Windsor.
2. Dale Leach riding his specially adapted Email: welshguardsrvo@gmail.com
/ aw =msweed Tel: 07456 985729
waned et aa Welsh Guards Regimental Veterans Officer or Jiffy
Facebook Messenger: Jiffy Myers
WhatsApp: 07411 950784 - Jiffy Myers
EeeeRener
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5

iEee eee Fostering Espirit de Corps

FenRegimental year, alongTrustees with allauthorise other Footguardsa grant of Regiments, £1,500 to Guardsour combinedin the Battalion with thereceiving other additionalover £153,000more to minorspend grantson the this goodresultsand Company at the Infantry Training Centre to help towards fostering benefit of serving individuals and to foster esprit de corps. esprit de corps within the new recruits and in 2023-24 the Regimental —_ Primarily used on sports, adventure training and welfare, in addition Trustees also allocated £140,000 to be spent on Esprit de Corps this year, a large percentage of the grant was used to enable those activities within the Battalion. In addition, a further £16,250 was on operational training exercises in the USA, to relax and unwind granted to enable ten members of the Battalion to attend, free of during a short period of time off in Louisiana. Each year funding also charge, the Regimental Battlefield Tour (BFT) to Gallipoli and £3,000 enables the Battalion the opportunity to recognise achievements and was provided to help subsidize both the Officers and Sergeants purchase individual awards, hold prize giving ceremonies and provide Messes lunches following the historical King's Birthday Parade. equipment and opportunities outside of the normal military remit. Of the major grant, over £115,000 was spent and, alongside the Battalion's own income from investments of over £21,000 and when

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strips. wearing WG Charity funded strips. for the Welsh Guards Chanty by running the Rome
2. Battalion Cycling Team on a training ride, Box Hill, 5. Sporting the WG Charity funded ski suits, the Battalion Marathon.
Surrey. Team line up for Exercise FROSTED BLADE in Val-
3. Sgt Simons, a member of the Battalion Enduro Club, d'Isére.
fully funded by the WG Charity.
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----- End of picture text -----*

6

==> picture [405 x 57] intentionally omitted <==

----- Start of picture text -----
A ee SE SS
How we help - Veterans and Heritage
----- End of picture text -----

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----- Start of picture text -----
=spent looking 2023after over our £176,000 Veterans wasand e RFA£10,000 Sir Galahad grant towardsSurvivors the costlunch of the e Collection£9,000 fundingto help provided fund the tovolunteers the WG
Regimental Heritage and we continue to * Over £17,000 spent on Regimental who work tirelessly to maintain the
help fund this category in many areas. The Remembrance events in London and collection
following are just a few examples of the Wales, including the annual Field of * £1,350 provided to purchase a
support provided throughout the year: Remembrance Memorial Bench which will be located
e £2,400 Subsidy for those Falkland ¢ £1,000 Annual Grant to the Guards at the Welsh Guards Memorial, Fitzroy,
Veterans retuming to the Islands for Museum Falkland Islands
the first time. * Over £29,000 funding towards the © Over £6,000 provided to the Welsh
£1,000 Grant provided to offset annual Regimental St David's Day Guards Association to help fund the
the cost of the annual Wrexham celebrations in Windsor annual Battlefield Tour
Falklands church service, parade, and
refreshments each June
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4. Welsh Guards Veterans marching fo the Household Divisian Mamona! to lay a
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2.1. AssociationWetsh Guards andAssociation the Welsh BattlelisidGuards Charity.Tour, subsidised by both the Walsh Guarts 7. duringpurchased,His Royalhis Highnessfrstvia visitthe PrincetoRoyal the ArttishBattalion Wiliam,lagion,anPrinceStat of aDavid's cost Wales, ofDay E1.our new2023. RegimentalEach artificial Colonellank is }10) ! &= - |
Battalion representation, funded by our charity, attanding the annual memorial & ~The Welsh Guards Association can provide a caffln pall, buff bal, and forage cap
3. serviceSponsored at bySt Charles the Weishde Percy,GuardsFrance.Charity, veteran end saving Weish Guards 9, toThecressWelsh theGuardscoltin ofCharitya WeishsupportedGuards veteran.annua! polo match in memory of Lt Cof R
golfers representing the Regiment during the annual Household Divisian Colonel. Thomeine MBE.
in-Chiats gol compatition. 10. Wheath laying during the Walsh Guards Association Bettiefield Tour.
nC
----- End of picture text -----*

7

WELSH GUARDS CHARITY

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES

Opinion

We have audited the financial statements of Welsh Guards Charity (the ‘charity') for the year ended 31 March 2024 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on | April 2005 which is referred to in the extant regulations but has been

withdrawn.

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Page 12

WELSH GUARDS CHARITY

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES (CONTINUED)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees’ responsibilities statement, the Trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors’ responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

a Page 13

WELSH GUARDS CHARITY

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES (CONTINUED)

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

We gained an understanding of the legal and regulatory framework applicable to the charity and the objectives it operates for and considered the risk of acts by the charity that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Charity Law. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and inspection of legal correspondence. In addition to this, our testing included a review of grants payable and other expenditure to ensure they were relevant to the charity’s activities.

As in all our audits, we also addressed the risk of management override of internal controls, including testing journals, classifications of funds and evaluating whether there was evidence of bias by the trustees that represented a risk of material misstatement due to fraud.

There are inherent limitations in the audit procedures described above and, the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud.

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

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Shaw Gibbs (Audit) Limited Statutory Auditors Wey Court West Union Road Farnham Surrey GU9 7PT Dae: 63, fin lanld&e

Page 14

| |

WELSH GUARDS CHARITY

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2024

GeneralPurposesFund BandFund WelfareFund WelshGuardsriwhen 2024
Unrestricted Income Unrestricted Income Restricted Income Restricted Income Total Income
Income
Investmentincome 134,559 16,036 26,469 88,163 265,227
One andtwo days’ pay scheme 37,195 - 37,195 - 74,390
Donations 75,476 90 - 1,566 77,132
Legacies 27,628 - - - 27,628
Fundraising 31,360 1,210 - - 32,570
Otherincome 32,075 318 2,234 - 34,627
Totalincome 338,293 17,654 65,898 89,729 511574
Expenditure
Costofraising funds 24,378 405 - - 24,783
Grantsanddonations z 178,046 374 31,110 4,400 213,930
Othercharitable activities 3 177,493 11,249 10,862 58,476 258,079
Regimental property 4 16,101 6 45 45 16,197
Supportcosts 22,133 976 8.161 16,553 47,822
Totalexpenditure 418,150 13,010 50,178 79,474 560,811
Netexpenditure (79,858) 4,644 15,721 10,255 (49,238)
Transfer
Gain on revaluation offixed
east		 4,627
108,050		 405
-		 665
-		 2,238
-		 7,935
108,050
Netmovement in funds 32,819 5,049 16,386 12,493 66,747
Fund balances brought
forward (restated) 902,811 10,054 20,013 10,947 943,825
Totalfunds carried forward 935,631 15,104 36,398 23,440 1,010,572
=——————————————————————————— —— oe SS). ae ——— eee _--—

Page 15

WELSH GUARDS CHARITY

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2024 (cont.)

==> picture [742 x 414] intentionally omitted <==

----- Start of picture text -----
|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |Welsh| |2024|2024|2024|nea|Guards| |ty|Association| |Total|Total| |Total|Income|Expendable|Permanent|Total 2024|Total 2024|2024|2023| |Endowment|Endowment|(restated)| |Income| |Investment|income!|265,227|.|.|265,227|19,113|284,340|249,205| |One and two days’ pay scheme|74,390|.|.|74,390|-|74,390|72,558| |Dotiations|77,132|.|.|77,132|262|77,394|87,008| |Legacies|27,628|.|.|27,628|-|27,628|55,482| |Fundraising|32,570|.|.|32,570|26,656|59,226|41,250| |Other|income|34,627|.|.|34,627|445|35,072|26,861| |Total|income|511,574|-|-|511,574|46,476|558,050|532,364| |Expenditure| |Cost of|[raising][ funds]|24,783|:|-|24,783|8,572|33,355|33,339| |Grants|and/donatians|2|213,930|-|-|213,930|1,500|215,430|171,106| |Other charitable|activities|3|258,079|-|-|258,079|35,445|293,524|275,190| |———e|4|16,197|.|.|16,197|.|16,197|15,376| |Support costs|2|——|.|;|47,8228|1,086|48,908|62,419| |Investment manager fees|-|37,074|4.095|41,169|2,955|44,124|40,118| |Total|expenditure|560,811|37,074|4,095|601,980|49.558|651,538|597,548| |Net expenditure|(49,238)|(37,074)|(4,095)|(90,407)|(3,082)|(93,489)|(65,184)| |Realised|gains/(losses)|on|investments|-|31,139|3,357|34,496|2,423|36,919|37,889| |Unrealised gains/(losses)|on|investments|-|388,611|43,005|431,616|31,040|462,656|(471,864)| |Transfer|7,935|(6,274)|(665)|996|(996)|-|-| |Gains on|revaluation|of fixed|assets|108,050|-|-|108,050|-|108,050|:| |Net movement in|funds|66,747|376,402|41,602|484,752|29,385|514,137|(499,159)| |Fund balances|brought|forward|943,825|6,414,485|720,274|8,078,584|558,539|8,637,123|9,136,282| |(restated)| |‘Total Faads carried forwartl|1,010,572|6,790,887|761,876|8,563,336|587,924|9,151,261|8,637,123|

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Page 16

WELSH GUARDS CHARITY

BALANCE SHEET AS AT 31 MARCH 2024

a
ee		 eee eee eee ee ee ee eee ee ee ee ee ee ee ee ee
Gesara
Purposes
Fund		 Band
Fund		 Welfare
Fund		 aban
—-
Afghanistan
Appeal
Fund		 Welsh
Guards
3
Charity
Total2024		 Welsh
Guards
ee
Association
Total 2024		 2024 2023
(restated)
Fixed assets
Tangible assets
Heritage asset
Tavestuients
Debentures		 8
9
10
it		 =
767,700
3,776,268
10,545		 i
462,696		 i
:
764,234
7,169		 =
E
2,548,121
:		 -
767,700
7,551,319
18,314		 i
2
551,602
2		 7
767,700
8,102,921
18,314		 -
658,350
7,654,634
19,005
4,554,513 462,696 772,003 2,548,121 8,337,333 $51,602 8,888,935 8,331,989
Current assets
Stocks
iiebor
Cashtatbani-and inhand		 hand : v 11,100
50,202
102,911		 -
3
15,814		 -
17,813
13,688		 -
25,125
24,698		 11,100
93,140
157,111		 -
1,490
42,544		 11,100
94,630
199,655		 16,957
4,393
312,534
164,213 15,814 31,501 49,823 261,351 44,034 305,385 333,883
Current liabilities
SundryCreditors (18,672) (2,138) (5,231) (9,306) (35,346) (7,712) (43,058) (28,750)
(18,672) (2,138) (5,231) (9,306) (35,346) (7,712) (43,058) (28,750)
N
et current assets		 145,540 13,676 26,271 40,517 226,004 36,322 262,326 305,134
Net assets 4,700,053 476,372 798,274 2,588,638 8,563,337 587,924 9,151,261 8,637,123

Page 17

;

WELSH GUARDS CHARITY

|

BALANCE SHEET (continued) AS AT 31 MARCH 2024

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----- Start of picture text -----
|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |Pilvund|[eral]|Band|Welfare|AfdanistanWelsh|GuardsWelsh|GuardsWelsh|2024|2023| |un|Fund|Fund|Appealsaund|TotalCharity 2024|AssociationTotal 2024| |Unrestricted|income|funds|240,613|15,104|-|-|255,717|38,023|293,740|364,564| |Restricted|income|funds|-|-|36,398|23,440|59,838|-|59,838|30,959| |Expendable endowment funds|13|3,764,423|461,268|-|2,565,199|6,790,889|549,901|7,340,790|6,934,358| |Permanent endowment|funds|-|-|761,876|:|761,876|-|761,876|720,274| |Revaluation|reserve|695,018|-|-|-|695,018|-|695,018|586,968| |Net|“4,700,053.700,053|~=«476,372,—~—é<“‘<‘«éz372|98,27:ST|~~~«SR2,588,638OS|||«S0378,563,337|)|6|)|~~!«(«S87924587,92|«©—«81S1,261.51,261|=“ SS««8,637,12337,| |—|SSS|———|————=|Se|Se|nee eee]|——*——~"~=~=;Z=ZE{q]€]”z=—==|ee)|—SS—SSSSSSSSS=S=|

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Approved by the Board of Trustees and signed on its behalf:

Captain R S Mason - Trustec Date: 29 \ip \QAD aw

Page 18

WELSH GUARDS CHARITY

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024

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----- Start of picture text -----
Note 2024 2023
£ £
Cash flows from operating activities
Net cash used in operating activities 16 (447,209) (281,733)
Cash flows from investing activities
Dividends and interests from investments 284,340 249,205
Purchase of heritage assets (1,300) (9,450)
Purchase of investments (1,184,221) (1,718,406)
Proceeds from sale of investments 1,117,066 1,780,791
Investment cash movements 118,445 (208,912)
Net cash (used in)/provided by investing activities 334,330 93,228
Net cash used in financing activities - 2
Change in cash and cash equivalents in the year (112,879) (188,505)
Cash and cash equivalents at the beginning of the year 312,534 $01,039
Cash and cash equivalents at the end of the year 199,655 312,534
Analysis of changes in net debt
At 1 April Cash flows At 31 March
2023 2024
£ £ £
Cash at bank and in hand 312,534 (112,879) 199,655
Debt due within 1 year (28,750) (14,308) (43,058)
283,784 (127,187) 156,597
----- End of picture text -----

Page 19

WELSH GUARDS CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

1 ACCOUNTING POLICIES

1.1 Basis of accounting

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011. The Charity constitutes a public benefit entity as defined by FRS102.

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

The financial statements have been under the historical cost convention.

Investment securities are reflected in the accounts at market value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Investment income

Investment income is credited to the income and expenditure account when the income is probable, when the charity is entitled to the income and the amount of income can be measured reliably.

1.4 Voluntary income

Donations under deeds of covenant, together with the associated income tax recoverable, and subscriptions are recognised as income when the income is probable, when the charity is entitled to the income and the amount of income can be measured reliably.

1.5 Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

Grants payable are payments made to third parties in furtherance of the charitable objectives of the Charity. Grants payable are accounted for when either the recipient has a reasonable expectation that they will receive the grant and the Trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and the condition attaching to the grant is outside the control of the Trustees.

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

Page 20

WELSH GUARDS CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

ACCOUNTING POLICIES cont.

1.6 Cost of raising funds

These relate to those specific costs incurred for investment management fees and in organising and staging fundraising events and seeking voluntary contributions together with attributable support costs.

1.7 Charitable activities

The Charity makes grants to projects and these, along with the direct costs, are allocated to each of the identified charitable activities as incurred. Support costs are the indirect costs of carrying out these activities and are allocated on the basis of total spend on each activity in the year.

1.8 Governance

This represents all costs involving public accountability of the Charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and constitutional requirements together with attributable support costs.

1.9 Tangible fixed assets

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

Band instruments 5% per annum on written down value Motor vehicle 25% per annum on costs Office equipment 25% per annum on costs

Debentures are stated at cost less amortisation. Amortisation is calculated to write off the cost, less estimated residual value, over the debentures expected useful life at the following rate: Debenture 3% per annum on cost

1.10 Heritage assets Heritage assets are stated at market value and are reviewed annually for impairment. They are not depreciated on the grounds of indefinite useful economic life.

1.11 Fixed asset investments

Investments are stated at mid-market value.

1.12 Stocks

Sundry stocks are stated at the lower of cost and net realisable value.

Short term debtors are measured at the transaction price.

1.14 Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to know amounts of cash with insignificant risk of change in value.

Page 21

WELSH GUARDS CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

ACCOUNTING POLICIES cont.

1.15 Creditors

Short term creditors are measured at the transaction price.

1.16 Financial instruments

The charity has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are recognised initially in the accounts at transaction price, including any transaction costs. At the end of each accounting period, basic financial instruments are recognised at amortised cost. For debt instruments this is calculated using the effective interest rate method.

1.17 Fund accounting

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the Trust’s charitable objectives. Restricted funds are specifically donated to the Charity where the donor has specified, they be used for the benefit of a specific fund.

The expendable endowment fund relates to an investment portfolio with the terms that the primary objective is to preserve the capital whilst the income generated is wholly unrestricted to be applied by the Trustees towards the general charitable purpose of the Charity. The terms of the fund also allow for income to be accumulated and for the capital to be spent if the Trustees so determine.

The permanent endowment fund relates to an investment portfolio with the terms that the primary objective is to preserve the capital whilst the income generated is wholly unrestricted to be applied by the Trustees towards the general charitable purpose of the Charity.

1.18 Defined contribution pension plan

The charity operates a defined contribution plan for its employee. A defined contribution plan is a pension plan under which the charity pays fixed contributions into a separate entity. Once the contributions have been paid the charity has no further payment obligations.

The contributions are recognised as an expense in the Statement of Financial Activities when they fall due. Amounts not paid are shown in the accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the charity in independently administrated funds.

Page 22

WELSH GUARDS CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

2 GRANTS AND DONATIONS

Year ending Yearending Year ending Yearending
Mar 2024 Mar 2023
£ £
General Purposes Fund
Grants— 1"Battalion WelshGuards 115,337 68,000
Atlantic Venture -rowing 21,035 21,035
Othergrants ofless than£200 each “ .
Othergrants 41,674 40,294
178,046 129,329
Welfare Fund
£. £
Welfare grants 21,110 30,662
Grants— 1* Battalion WelshGuards 5,000 5,000
Army BenevolentFund 5,000 5,000
31,110 40,662
Welsh Guards Afghanistan Appeal £ £
Grants 4,400 2
Association Fund
£ £
Othergrants 1500 973
Total Grants payable
General purposes Fund 178,046 129,329
Band Fund 374 142
Welfare Fund 31,110 40,662
WelshGuards AfghanistanAppeal 4,400 -
Associationfund 1,500 973
215,430 171,106

Support costs of £48,908 (2023: £62,419) includes office costs £10,945 (2023: £5,770); costs of grant making (including Honorarium and expenses) of £11,154 (2023: £17,985); exchange rate variance £3,468 (2023: £16,673), other costs of £3,671 (2023: £3,961) and governance costs of £19,670 (2023: £18,030) (see note 5).

Page 23

WELSH GUARDS CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

3 OTHER CHARITABLE ACTIVITIES

Year ending Yearending
Mar 2024 Mar 2023
£ £
Battlefield tour 75,260 74,736
Regimental Veterans officer salary and expenses 52,166 47,381
Honorariaand expenses 38,174 59,078
RemembranceDay 17,784 16,130
Welsh Guards Charity Christmas card 3,114 1,736
Presentation - salvers 3,776 9,348
Meeting/entertainment 22,300 126
Regimental goods 3,918 2,640
Other expenses 9,098 2,099
Various events 56,309 $1,243
Welsh Guards Charity Website 2,750 2,932
HQH Div. Subs 4,862 4,493
Esprit de Corps 3,322 2,557
Debenture Amortisation 691 691
293,524 275,190
Summary ofOther Charitable Activities expenditure
£ £
General Purposes Fund 177,493 107,089
Band Fund 11,249 10,920
Welfare Fund 10,862 15,807
Welsh Guards AfghanistanAppeal 58,476 76,221
Welsh Guards Association 35,445 65,153
293,524 275,190

Page 24

WELSH GUARDS CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

4 REGIMENTAL PROPERTY

General Purposes Fund £ £
Repairs andmaintenance 11,360 7,293
Insurance 3,160 2,984
Regimental property 1,581 1,746
16,101 12,023
Band Fund £ £
Insurance 6 ———
Welfare Fund £ £
Depreciation - 3,257
Insurance 45 45
45 3,302
Afghan Fund £ £
Insurance 45 45

5 GOVERNANCE

Governance costs include expenditure incurred on accountancy, audit and legal fees incurred in the year on the various funds. Governance costs for the year were £19,670 (2023: £18,030) which included £17,070 (2023: £15,870) for audit and accountancy fees.

6 TRUSTEES REMUNERATIONS AND EXPENSES

During the year, no trustee received reimbursed expenses (2023 - £nil).

Page 25

WELSH GUARDS CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

7 EMPLOYEES & HONORARIUM

Year ending Yearending
Mar 2024 Mar 2023
£ £
Wages and salaries and car allowance 43,863 39,446
Social security and pension costs 4,537 3,239
Honorarium 45,156 71,500
93,556 114,185

There was one person employed by the company during the year (2023: one). No employee received employee benefits of over £60,000.

The Honorarium relates to the Regimental Adjutant, the Assistant Regimental Adjutant and the Treasurer, all of which are not employed by the charity.

General purposes Fund Office
Equipment Total
£
Cost
At 1 April 2023 13,947 13,947
At 31 March2024 13,947 13,947
Depreciation
At 1 April 2023 13,947 13,947
Depreciation forthe year - -
At 31 March 2024 13,947 13,947
Net book value at
31 March 2024 - :
31March2023 = -

Page 26

WELSH GUARDS CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

TANGIBLE FIXED ASSETS (continued)
Motor Total
Welfare fund Vehicles
£ £
Cost
At 1 April2023 13,025 26,972
At 31 March2024 13.025 6.972
Depreciation
At 1 April 2023 13,025 26,972
Charge forthe year ; -
At31 March 2024 13,025 26,972
Net bookvalue at
31 March2024 - “
31 March 2023 - -
9
HERITAGE ASSETS
Other Victoria Paintings Total
General fund Cross
£ £ £ £
Cost
3,000 250,000 405,350 658,350
At 1 April2023 (restated)
Additions 1,300 1,300
Revaluation 108,050 108,050
At31March2024 4,300 250,000 513,400 767,700

The Victoria Cross was valued by Dix Noonan Webb (DNW) on the 11 January 2022. The valuation was based on commercial markets, including recent transactions and information from auctions where similar types of medals were sold.

The paintings held by the charity were valued by Edward Fraser Ltd at 31 March 2024 based on commercial markets.

The Trustees consider each year if any impairments have affected the valuation of the assets.

Page 27

WELSH GUARDS CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

10 INVESTMENTS

2024
£
Market value— listed investments 1 April 2023 7,375,631
Additions 1,184,221
Disposals (1,080,896)
Net unrealised investment gains 462,656
Market value— listed investments 31 March 2024 7,941,612
Investments aremade up of:
Year ending Yearending
Mar 2024 Mar 2023
£ £
Listed investments 7,941,612 7,375,415
Cash investments 161,309 279,216
Total 8,102,921 7,654,631

10 DEBENTURES

This comprises two £50 debentures issued by the Welsh Rugby Union acquired for a consideration of £22,388 and amortised over their 30-year length.

11 DEBTORS Year ending Year ending Year ending Year ending
Mar 2024 Mar 2023
£ £
Prepayments 61,750 4,393
Other Debtors 5,250 -
Accrued Income 27,630 -
94,6304393

Page 28

WELSH GUARDS CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

12 EXPENDABLE ENDOWMENT FUNDS

General
Purposes
shana		 pend Welsh
Guards
Afghanistan
om		 Welsh
Fat
Total2024		 Welsh
jean
—-Total2024		 2024 2023
Balancebroughtforward 3,553,206 436,079 2,425,199 6,414,484 519,874 6,934,358 7,213,286
Movementintheyear
Transfers		 214,849
(3,633)		 25,591
(403)		 142,238
(2,238)		 382,678
(6,274)		 30,507
(480)		 413,186
(6,754)		 (430,114)
151,186
At31March2024 3,764,423 461,268 2,565,199 6,790,889 549,901 7,340,790 6,934,358

13 PRIOR YEAR ADJUSTMENT

|

During the year it was identified that two additional Rex Whistler paintings had not previously been included in the heritage asset total. The value of these paintings was £20,000 and had been held by the charity prior to the current year. A prior year adjustment has been made to increase the heritage asset value from £638,350 to £658,350 and revaluation reserve from £566,968 to £586,968.

Page 29

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

WELSH GUARDS CHARITY

14 FUNDS

The Charity has four funds:

General Purposes Fund

This is an expendable endowment fund, the income of which can be used for general purposes.

Welfare fund

This is a permanent endowment fund the income of which can only be used for welfare.

The Band Fund

This is an expendable endowment fund the income of which can be used both for the Band and for the efficiency of the Armed Forces (i.e. Welsh Guards) if so wished.

Welsh Guards Afghanistan Appeal Fund

This fund is an expendable endowment fund the income of which can be used only for the purposes of the Appeal. In addition, it holds an amount donated anonymously, the capital and income from which is restricted and can only be used, as stipulated by the benefactor, for the educational benefit of two children whose Father was killed in action in Afghanistan.

15 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES

==> picture [441 x 183] intentionally omitted <==

----- Start of picture text -----
|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |2024|2023| |£|re| |Net|income/expenditure|for|the|year|(as|per|Statement|of|514,137|(499,159)| |Financial|Activities)| |Adjustments|for:| |Depreciation|charges|-|3,257| |Amortisation|charges|691|691| |Revaluation|of heritage|assets|(108,050)|-| |Dividends|and|interests|from|investments|(284,340)|(249,205)| |Gains|on|investments|(499,575)|433,975| |Decrease/(increase)|in|stocks|5,857|970| |Decrease/(increase)|in|debtors|(90,237)|41,464| |Increase/(decrease)|in|creditors|14,308|(13,726)| |Net|cash provided|by/(used|in)|operating|activities|(447,209)|(281,733)|

----- End of picture text -----

Page 30

WELSH GUARDS CHARITY

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2024 (2023 COMPARATIVES)

General PurposesFund Band Fund WelfareFund —eeeel Seal —eeeel Seal idan
Unrestricted Income Unrestricted Income Restricted Income Restricted Income Total Income
Income
Investment income 116,798 14,167 23,447 77,907 232,319
Oneandtwodays’payscheme 36,279 - 36,279 - 72,558
Donations 75,037 677 1,118 6,544 83,376
Legacies 55,482 - - - 55,482
Fundraising 15,709 (281) - - 15,428
Otherincome 26,683 31 79 - 26,793
Totalincome 325,988 14,594 60,923 84,451 485,956
os ooo _——————— EE Ee ———————————————— ee
asaya.
SS
SS EF
Expenditure
Costofraisingfunds 29,853 405 - - 30,258
Grantsanddonations 2 129,329 142 40,662 - 170,133
Othercharitable activities 3 107,089 10,920 15,807 76,221 210,037
Regimental property 4 12,023 6 3,302 45 15,376
Supportcosts 24,391 1,712 9,952 24,320 60,375
Total expenditure 302,685 13.185 69,723 100,586 486,179
Netexpenditure 23,303 1,409 (8,800) (16,135) (223)
Transfer (139,608) (15,946) (11,817) (17,055) (184,426)
Gain on revaluation offixed
assets
Netmovement infands
Fund balances brought		 ee
(116,305)		 ee
(14,537)		 ee
(20,617)		 ae
(33,190)
forward (restated) 1,019,166 24,591 40,630 44,137 1,128,474
Total funds carried forward
(restated) 902,811 10,054 20,013 10,947 943,825
SSSS——————————>:->Tss=: SSeS eEoCoCoOoOoOoOoOoOoooooOoOoOCCOCl==>= EE =: _———————————————————————eee

Page 31

WELSH GUARDS CHARITY

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2024 (2023 COMPARATIVES) cont.

ad
(restated)		 2023 2023 WerGourds
Chasity		 Welsh
Guards
Association
Total Income Total
Expendable
Endowment		 Total
Permanent
Endowment		 Total2023 Total 2023 2023
Income
Investment income 232,319 - - 232,319 16,886 249,205
Oneandtwodays’ pay scheme 72,558 - - 72,558 - 72,558
Donations 83,376 - - 83,376 3,632 87,008
Legacies 55,482 - - 55,482 - 55,482
Fundraising 15,428 - - 15,428 25,822 41,250
Otherincome 26,793 - - 26,793 68 26,861
Total income 485,956 - - 485,956 46,408 532,364
Expenditure
Costofraisingfunds 30,258 - - 30,258 3,081 33,339
Grants and donations 2 170,133 - - 170,133 973 171,106
Other charitable activities 3 210,037 - - 210,037 65,153 275,190
Regimental property 4 15,376 - - 15,376 - 15,376
Supportcosts 60,375 - - 60,375 2,044 62,419
Investmentmanagerfees - 33,737 3,707 37,444 2,674 40,118
Total expenditure 486,179 33,737 3,707 523,623 73,925 597,548
Netexpenditure (223) (33,737) (3,707) (37,667) (27,517) (65,184)
Realised gains/(losses) on investments - 31,835 3,516 35,351 2,538 37,889
Unrealisedgains/( losses) on
investments - (396,467) (43,790) (440,257) (31,607) (471,864)
Transfer (184,426) 151,724 31,483 (1,219) 1,219 -
Gains on revaluation offixed assets - - = - 7 -
Netmovementinfunds (184,649) (246,645) ~ (12,498) (443,792) (55,367) (499,159)
Fund balances brought forward 1,128,474 6,661,130 732,772 8,522,376 613,906 9,136,282
Totalfundscarriedforward 943,825 6,414,485 720,274 8,078,584 558,539 8,637,123

Page 32

|

WELSH GUARDS CHARITY

BALANCE SHEETS AS AT 31 MARCH 2024 (2023 COMPARATIVES)

General
Purposes
Fund
(restated)		 Band
Fund		 Welfare
Fund		 Pic
‘Aiea
e
Appeal
Fund		 Pic
‘Aiea
e
Appeal
Fund		 eo
Chari
ty
Teuetaees
(restated)		 Welsh
Guards
Association
Total2023		 2023
(restated)
Fixed assets
Tangible assets 8 - = = = F 7 s
Heritage asset 9 658,350 - - - 658,350 - 658,350
Investments
Debentures		 10
11		 3,564,799
10,960		 437,508
=		 722,631
8,045		 2,408,122
:		 7,133,060
19,005		 521,574
:		 7,654,634
19,005
4,234,109 437,508 730,676 2,408,122 7,790,415 521,574 8,331,989
—— __—————— ———eeee oaoaeaoaaqQ]== ——————— QaSaq]_SS=—=—————== SSS
ee
Current assets
Stocks
Debtors		 12 16,957
2,549		 .
,		 .
=		 a 16,957
2,549		 -
1,844		 16,957
4,393
Cash at bank and in hand 214,175 8,912 11,980 36,115 271,182 41,352 312,534
Interfunddebtors = = “i > - - 7
233,681 8,912 11,980 36,115 290,687 43,196 333,883
Current liabilities
Sundry Creditors (11,773) (286) (2,369) (8,091) (22,520) (6,230) (28,750)
(11,773) (286) (2,369) (8,091) (22,520) (6,230) (28,750)
Netcurrent assets 221,908 8,626 9,611 28,024 268,168 36,966 305,134
Netassets 4,456,017 446,134 740,287 2,436,146 8,058,583 558,540 8,637,123
—__ SSS ——————————_ SSeS SSS _———— SS

Page 33

WELSH GUARDS CHARITY

BALANCE SHEETS (2023 COMPARATIVES) cont.

Purposes
Fund
(restated)
=		 Band
Fund		 Welfare
Fund		 -
Afghanistan
Appeal
Fund		 ,
Charity
Total2023
(restated)		 Guards
hana
Association
Total2023		 2023
(restated)
Unrestricted income funds 315,843 10,054 - - 325,898 38,666 364,564
Restricted income funds - - 20,013 10,947 30,959 - 30,959
Expendableendowment funds 13 3,553,206 436,079 - 2,425,199 6,414,484 519,874 6,934,358
Permanentendowment funds - - 720,274 - 720,274 - 720,274
Revaluation reserve 586,968 - - - 586,968 - 586,968
Netassets 4,456,017 446,134 740,287 2,436,146 8,078,583 558,540 8,637,123

Page 34