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2021-03-31-accounts

CHARITY REGISTRATION NUMBER: 1166089

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Financial Statements

31 March 2021

WALTER HUNTER & CO LIMITED

Chartered accountants & statutory auditor 24 Bridge Street Newport South Wales NP20 4SF

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Financial Statements

Year ended 31 March 2021

Page
Trustees' annual report 1
Independent auditor's report to the members 8
Statement of financial activities 12
Statement of financial position 13
Statement of cash flows 14
Notes to the financial statements 15

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Trustees' Annual Report

Year ended 31 March 2021

The trustees present their report and the financial statements of the charity for the year ended 31 March 2021.

Reference and administrative details

Registered charity name The Royal Welsh Regimental Welfare and Benevolence Foundation
Charitable Incorporated Organisation
Charity registration number 1166089
Principal office Maindy Barracks
Cardiff
CF14 3YE
The trustees
Major (Retd) MFH Adler TD
Captain (Retd) JEE Barham
Brigadier CBK Barry OBE
Captain (Retd) DJ Hitchcock OBE
Col NJ Lock OBE
Captain (Retd) RJE Minter-Kemp
Lt Col MS Powell
Lt Col RC Streatfeild
Lt Gen JFP Swift OBE - Chairman (Ex-Officio)
Auditor Walter Hunter & Co Limited
Chartered accountants & statutory auditor
24 Bridge Street
Newport
South Wales
NP20 4SF
Bankers The Royal Bank of Scotland
Holt's Farnborough Branch
Lawrie House
Victoria Road
Farnborough
GU14 7NR
Investment manager Smith & Williamson
25 Moorgate
London
EC2R 6AY

1

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Trustees' Annual Report (continued)

Year ended 31 March 2021

Structure, governance and management

Governing document

The Royal Welsh Regimental Welfare and Benevolence Foundation was first registered on 16 March 2016 but did not commence operation until 18th July 2017. The net assets and charitable activities of the following charities were transferred on this date:

Organisational structure

The Board of trustees meet at least twice a year to receive the annual accounts, discuss major policy issues and campaigns, and agree priorities for action. The charity does not have any employees. All decisions are made by the trustees; however, the day-to-day management of the charity is undertaken by the Regimental Secretary.

Trustee recruitment and induction

Trustees are recruited from serving, and former, members of the regiment.

The Trustees have been offered trustee training from the Investment Manager, Smith & Williamson. Annual training will be offered at the next full meeting of the Board in June 2021.

2

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Trustees' Annual Report (continued)

Year ended 31 March 2021

Objectives and activities

Objects and aims of the charity

  1. To promote the efficiency of the Armed Forces of the Crown in general and in particular, the efficiency of the Royal Welsh or any component or predecessor regiment or unit by any charitable means the charity trustees may decide, including without limitation:

  2. a) fostering esprit de corps and comradeship and supporting cadet units affiliated to the Royal Welsh;

  3. b) assisting members of the Royal Welsh, or any component or predecessor regiment or unit, or any personnel attached to those regiments, with their transition to civilian life, in particular without limitation by providing education to aid with re-settlement and assisting them to find employment;

  4. c) fostering and preserving the history, heritage, traditions, and military accomplishments of the Royal Welsh and any component or predecessor regiment or unit, including without limitation by supporting a museum or museums, archives and collections; and

  5. d) commemorating and remembering the members of the Royal Welsh, or any component or predecessor regiment or unit, who have died while on active service and to encourage public recognition of the sacrifice made by such persons; and in particular without limitation to provide memorials to commemorate the fallen or victories, and maintain regimental chapels or churches;

  6. To advance the education of members of the Royal Welsh, or any component or predecessor regiment or unit;

  7. To relieve hardship, distress or need among members and former members of the Royal Welsh, or any component or predecessor regiment or unit, members of families and other dependents, including without limitation by providing financial support to families or other dependents on those who have lost their lives on active service;

  8. To promote and protect the health of those that have been wounded or injured, whether on active service or otherwise, whilst serving in the Royal Welsh, or any component or predecessor regiment or unit, at the charity trustees' discretion; and

  9. Such other exclusively charitable purposes relating to the Royal Welsh or any component or predecessor regiment or unit, as the charity trustees in their absolute discretion think fit.

The main activities undertaken in relation to the above are noted throughout this report.

The charity measures its success by reviewing if it has fulfilled all the benevolence cases that were identified to the Regimental Head Quarters during the year.

3

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Trustees' Annual Report (continued)

Year ended 31 March 2021

Objectives and activities (continued)

Public benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

The fund achieves its objects by the provision of charitable grants to individuals and families of the Regimental Family for the purpose of promoting the efficiency of the Armed Forces of the Crown, particularly by supporting the Regiment's veterans in their time of need. The charity provides this benevolence independently and in conjunction with such Service Charities as The Royal British Legion and The ABF The Soldiers' Charity to meet requirements that are not met by public services. The trustees recognise the benefits that this brings to The Regiment and the Army in helping to fulfil their covenant to the veterans, through providing support to the grave.

The trustees consider, therefore, that the charity more than meets the requirement to provide public benefit under the charitable "head" of "the promotion of the efficiency of the Armed Forces of the Crown".

Policies adopted

The trustees have adopted additional policies which do not permit the making of loans to potential beneficiaries of the charity (see objects of the charity above).

Grant making policy

Any grants awarded by the charity are at the discretion of the trustees. Depending on the value of the grant requested, grants will be referred to the board of trustees for their approval.

Achievements and performance

During the past financial year the Foundation has not issued as many grants as it would normally have done so due to the Covid 19 pandemic. It has made the following grants:

4

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Trustees' Annual Report (continued)

Year ended 31 March 2021

Achievements and performance (continued)

Investment performance

The trustees were satisfied with the management of the fund's investments which generated income of £87,824 (2020: £102,742, 4.5% yield), a yield of just over 3.7% on the book cost of the listed investments.

In 2016 the charity set up the Investment Sub-Committee which will be responsible for addressing all investment issues relating to the trustees of The Royal Welsh Regimental Welfare and Benevolence Foundation. The objectives of the Sub-Committee are as follows:

The Committee reports to the Board on its activities and the performance of the Scheme on a six-monthly basis. This will usually coincide with the six-month interim and final reports from the Investment Advisor. This committee will prepare plans for the six-month period ahead and back brief the full Board meeting accordingly.

Financial review

The charity achieved the following results during the year:

Benevolence
Welfare		 Welfare
restricted unrestricted restricted Total
£ £ £ £
Surplus before exceptional items and
investment losses 25,106 25,909 93 51,108
Investment gains 256,494 256,494 – 512,988
───────── ───────── ──── ────────
Total surplus for year 281,600
═════════		 282,403
═════════		 93
════		 564,096
════════

The surplus before investment gains, net £51,108, is considered satisfactory.

Reserves policy

Reserves will be held at a level for contingencies, opportunities and commitments to be met, to mitigate all risks associated with the charity's operations and to allow the charity to respond quickly to emergencies where immediate relief is needed. The trustees have examined the requirement for free reserves which are those unrestricted funds not invested in fixed asset investments, designated for specific purposes or otherwise committed.

The free reserves of the charity at the year-end totalled £77,745 (2019: £(30,050)).

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month's expenditure.

5

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Trustees' Annual Report (continued)

Year ended 31 March 2021

Financial review (continued)

Investment policy

The overall investment policy of the charity can be stated as maximising the total return on investments for an acceptable level of risk that is commensurate with achieving a specified level of income. The investments objective is to achieve a balance between capital growth and a steady and growing level of income from a multi asset portfolio predominantly investing in bonds and equities. The risk profile of the portfolio is deemed as medium. This will be reviewed by the Investment Sub-Committee from time to time and any recommendation to change must be ratified by both the Investment Manager and the Board.

Benchmarking

Risks

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

The principal risks and uncertainties facing the charity as identified by the trustees are as follows:

Plans for future periods

The charity's future plans consist of maximising its investment return to enable it to carry out its charitable aims and objectives which will enable the charity to provide increased support and assistance to its beneficiaries.

Trustees' responsibilities statement

The trustees are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

6

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Trustees' Annual Report (continued)

Year ended 31 March 2021

The law applicable to charities in England and Wales requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, of the charity for that period.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust Deed. 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.

The trustees' annual report was approved on 8 June 2021 and signed on behalf of the board of trustees by:

Lt Gen JFP Swift OBE - Chairman (Ex-Officio) Trustee

7

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Independent Auditor's Report to the Members of The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Year ended 31 March 2021

Opinion

We have audited the financial statements of The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation (the 'charity') for the year ended 31 March 2021 which comprise the statement of financial activities, statement of financial position, 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 auditor's 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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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.

8

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Independent Auditor's Report to the Members of The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation (continued)

Year ended 31 March 2021

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 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 and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the 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.

9

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Independent Auditor's Report to the Members of The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation (continued)

Year ended 31 March 2021

Auditor's responsibilities for the audit of the financial statements

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

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:

Through these procedures, we did not become aware of actual or suspected non-compliance.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

10

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Independent Auditor's Report to the Members of The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation (continued)

Year ended 31 March 2021

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the charity's members, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's members those matters we are required to state to them in an auditor's 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 the charity's members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr Jonathan Rhodes BSc BFP FCA (Senior Statutory Auditor)

For and on behalf of Walter Hunter & Co Limited Chartered accountants & statutory auditor 24 Bridge Street Newport South Wales NP20 4SF

8 June 2021

11

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Statement of Financial Activities

Year ended 31 March 2021

2021 2020
Unrestricted Restricted
funds funds Total funds Total funds
Note £ £ £ £
Income and endowments
Donations and legacies 4 9,011 1,636 10,647 21,523
Charitable activities 5 34,924 36,350 71,274 71,080
Other trading activities 6 14,171 2,860 17,031 39,761
Investment income 7 43,928 43,928 87,856 102,952
───────── ──────── ───────── ─────────
Total income 102,034 84,774 186,808 235,316
═════════ ════════ ═════════ ═════════
Expenditure
Expenditure on raising funds:
Investment management costs 8 11,717 11,717 23,434 23,840
Expenditure on charitable activities 9,10 56,222 56,044 112,266 625,362
───────── ──────── ───────── ─────────
Total expenditure 67,939 67,761 135,700 649,202
═════════ ════════ ═════════ ═════════
Net gains/(losses) on investments 14 256,494 256,494 512,988 (361,474)
───────── ───────── ───────── ─────────
Net income/(expenditure) 290,589 273,507 564,096 (775,360)
═════════ ═════════ ═════════ ═════════
Transfers between funds (8,186) 8,186 – –
───────── ───────── ───────── ─────────
Net movement in funds 282,403 281,693 564,096 (775,360)
Reconciliation of funds
Total funds brought forward 793,038 1,874,179 2,667,217 3,442,577
──────────── ──────────── ──────────── ────────────
Total funds carried forward 1,075,441 2,155,872 3,231,313 2,667,217
════════════ ════════════ ════════════ ════════════

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 15 to 28 form part of these financial statements.

12

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Statement of Financial Position

31 March 2021

2021 2020
Note £ £
Fixed assets
Investments 18 3,153,276 2,601,415
Current assets
Debtors 19 7,064 8,103
Cash at bank and in hand 84,416 83,099
──────── ────────
91,480 91,202
Creditors: amounts falling due within one year 20 13,443 25,400
──────── ────────
Net current assets 78,037 65,802
──────────── ────────────
Total assets less current liabilities 3,231,313 2,667,217
──────────── ────────────
Net assets 3,231,313 2,667,217
════════════ ════════════
Funds of the charity
Restricted funds 2,155,872 1,874,179
Unrestricted funds 1,075,441 793,038
──────────── ────────────
Total charity funds 21 3,231,313
════════════		 2,667,217
════════════

These financial statements were approved by the board of trustees and authorised for issue on 8 June 2021, and are signed on behalf of the board by:

Lt Gen JFP Swift OBE - Chairman (Ex-Officio) Trustee

The notes on pages 15 to 28 form part of these financial statements.

13

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Statement of Cash Flows

Year ended 31 March 2021

2021 2020
£ £
Cash flows from operating activities
Net income/(expenditure) 564,096 (775,360)
Adjustments for:
Net gains/(losses) on investments (512,988) 361,474
Dividends, interest and rents from investments (87,824) (102,742)
Other interest receivable and similar income (32) (210)
Accrued (income)/expenses (11,957) 11,877
Changes in:
Trade and other debtors 1,039 415,665
───────── ─────────
Cash generated from operations (47,666) (89,296)
Interest received 32 210
──────── ────────
Net cash used in operating activities (47,634) (89,086)
════════ ════════
Cash flows from investing activities
Dividends, interest and rents from investments 87,824 102,742
Purchases of other investments (598,248) (620,144)
Proceeds from sale of other investments 559,375 609,520
───────── ─────────
Net cash from investing activities 48,951 92,118
═════════ ═════════
Net increase in cash and cash equivalents 1,317 3,032
Cash and cash equivalents at beginning of year 83,099 80,067
──────── ────────
Cash and cash equivalents at end of year 84,416 83,099
════════ ════════

The notes on pages 15 to 28 form part of these financial statements.

14

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements

Year ended 31 March 2021

1. General information

The Royal Welsh Regimental Welfare and Benevolence Foundation is a charitable incorporated organisation and a public benefit entity. The principal office is Maindy Barracks, Cardiff, CF14 3YE.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Charities Act 2011.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

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

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.

Since March 2020 the Covid-19 pandemic has seriously affected the UK generally. As a charity we have taken all necessary steps to combat the effects of the virus and to ensure that the charity is able to continue to operate.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's objectives unless the funds have been designated for other purposes.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

15

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2021

3. Accounting policies (continued)

Incoming resources

All income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or Deeds of Covenant is recognised at the time of the donation.

Income from the Days Pay Scheme is included in the period to which the income relates.

Investment income is recognised at the time the investment income is receivable. Interest on funds held on deposit included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Resources expended

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Expenditure on raising funds relates to the management charges from the charity's investment brokers to administer the portfolio. These are charged quarterly in arrears.

Expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable activities and their associated support costs.

Support costs have been allocated between governance cost and other support. Governance costs comprise all costs involving public accountability of the charity and its compliance with regulation and good practice.

Support costs include the central functions and have been allocated to activity costs categories on a basis consistent with the use of resources.

Where the charity gives a grant with conditions for its payment being a specific level of service or output to be provided, such grants are only recognised once the recipient of the grant has provided the specified service or output. Where there are no conditions attaching to the grant that enables the donor charity to realistically avoid the commitment, a liability for the full obligation must be recognised.

Investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

16

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2021

3. Accounting policies (continued)

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

17

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2021

3. Accounting policies (continued)

Financial instruments

The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which included debtors and cash and bank balances, are initially measured at transaction price including transactions costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction i measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classed as receivable within one year are not amortised.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of the ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, sing the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented ads non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity's contractual obligations expire or are discharged or cancelled.

18

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2021

4. Donations and legacies

Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Donations
Y Cymro – 1,636 1,636
General donations 9,011 – 9,011
─────── ─────── ────────
9,011 1,636 10,647
═══════ ═══════ ════════
Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Donations
Y Cymro – 3,646 3,646
General donations 7,719 10,158 17,877
─────── ──────── ────────
7,719 13,804 21,523
═══════ ════════ ════════
5. Charitable activities
Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Days Pay Scheme 34,924 36,350 71,274
════════ ════════ ════════
Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Days Pay Scheme 34,829 36,251 71,080
════════ ════════ ════════
6. Other trading activities
Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Rugby 7,900 – 7,900
PRI income 6,271 – 6,271
Miscellaneous income – – –
Officers society – 2,860 2,860
Welch 300 Cardiff – – –
──────── ─────── ────────
14,171 2,860 17,031
════════ ═══════ ════════

19

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2021

6. Other trading activities (continued)

Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Rugby 2,230 – 2,230
PRI income 15,657 – 15,657
Miscellaneous income 1,983 438 2,421
Officers society – 10,150 10,150
Welch 300 Cardiff 9,303 – 9,303
──────── ──────── ────────
29,173 10,588 39,761
════════ ════════ ════════

7. Investment income

Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Income from listed investments 43,912 43,912 87,824
Bank interest receivable 16 16 32
──────── ──────── ────────
43,928 43,928 87,856
════════ ════════ ════════
Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Income from listed investments 51,371 51,371 102,742
Bank interest receivable 105 105 210
──────── ──────── ─────────
51,476 51,476 102,952
════════ ════════ ═════════
Investment management costs
Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Portfolio management 11,717 11,717 23,434
════════ ════════ ════════
Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Portfolio management 11,920 11,920 23,840
════════ ════════ ════════

8. Investment management costs

20

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2021

9. Expenditure on charitable activities by fund type

Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Charitable activities 50,094 49,921 100,015
Support costs 6,128 6,123 12,251
Exceptional costs of charitable activities – – –
──────── ──────── ─────────
56,222 56,044 112,266
════════ ════════ ═════════
Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Charitable activities 121,335 70,753 192,088
Support costs 7,701 7,701 15,402
Exceptional costs of charitable activities 417,872 – 417,872
───────── ──────── ─────────
546,908 78,454 625,362
═════════ ════════ ═════════

21

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2021

10. Expenditure on charitable activities by activity type

Activities
undertaken
Grant funding		 Total funds Total fund
directly of activities Support costs 2021 2020
£ £ £ £ £
Charitable activities 53,648 46,367 43 100,058 192,164
Governance costs – – 12,208 12,208 15,326
Exceptional cost of
charitable activities – – – – 417,872
──────── ──────── ──────── ───────── ─────────
53,648 46,367 12,251 112,266 625,362
════════ ════════ ════════ ═════════ ═════════

Activities directly undertaken can be further analysed as:

Activities directly undertaken can be further analysed as:
2021 2020
£ £
Benevolence 20,204 31,669
Colonel of the Regiment – 78
Communications – 1,348
Community engagements (Incl. House of Commons reception) 10 1,684
Comrades – 2,646
Digital communications – 6,054
Donations – 258
General expenses 1,068 6,673
Golf – 739
Memorials – 350
Officers' Society 2,767 8,996
PRI expenditure 2,914 16,371
RMAS 2,448 3,000
Recruiting 8,971 8,846
Refreshments & hosting 28 422
RHQ expenses 4,216 4,433
Rugby expenses (including extension of Debentures) – 9,573
Welch 300 Cardiff – 24,073
Wreaths 1,200 1,719
Y Cymro expenses 9,822 10,352
───────── ─────────
53,648 139,284
═════════ ════════
Grants (note 12) 46,367 470,676
Share of support costs (note 11) 43 76
Share of governance costs (note 11) 12,208 15,326
──────── ─────────
112,266 625,362
════════ ═════════
Analysis by fund
Unrestricted funds 56,222 546,908
Restricted funds 56,044 78,454
───────── ─────────
112,266 625,362
═════════ ═════════

22

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2021

11. Analysis of support costs

Charitable Governance
activities costs Total 2021 Total 2020
£ £ £ £
Bank charges 43 – 43 76
Audit fees – 5,100 5,100 4,950
Accountancy fees – 2,592 2,592 2,704
Legal fees – 4,516 4,516 7,672
──── ──────── ──────── ────────
43 12,208 12,251 15,402
════ ════════ ════════ ════════
12. Analysis of grants
2021 2020
£ £
Benevolence Grants:
ABF The Soldiers Charity 10,200 10,000
Corp of Drums 75 75
Opus Energy Ltd 2,400 2,400
The Friends of Brecon Cathedral 20 20
The Friends of Llandaff Cathedral 25 25
Other benevolence grants 1,100 2,420
──────── ────────
13,820 14,940
──────── ────────
Welfare Grants:
1R Welsh 22,677 23,300
3R Welsh 5,370 6,504
Dyfed & Glamorgan ACF 2,000 –
Gwent & Powys ACF 2,000 –
Llandovery College CCF – 150
SWI Division 500 –
Other welfare grants – 575
Grant to PRI Fund – 6,000
Grant towards St David's Day Lunch – 1,000
Grant towards Annual Golf Day – 335
──────── ────────
32,547 37,864
──────── ────────
Exceptional Museum Charities Grant – 417,872
──────── ────────
Total grants 46,367
════════		 470,676
════════

Grants to institutions

The charity awarded grants to 12 institutions (2020: 11) and 4 individuals (2020: 3) during the year.

23

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2021

13. Taxation

As a charity, the Foundation is exempt from tax on income and gains, to the extent that such income or gains are applied exclusively to charitable purposes. No tax charges have arisen in the charity.

14. Net gains/(losses) on investments

Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Gains/(losses) on listed investments 256,494 256,494 512,988
═════════ ═════════ ═════════
Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Gains/(losses) on listed investments (180,737)
═════════		 (180,737)
═════════		 (361,474)
═════════

15. Employees

The charity had no employees during the financial year (2020: none).

16. Trustee remuneration and expenses

No remuneration or other benefits from employment with the charity or a related entity were received by the trustees (2020: £nil).

No trustees were reimbursed for expenses during the year (2020: £nil).

17. Transfers between funds

A transfer of £8,186 (2020: £6,706) has been made from unrestricted reserves to the Y Cymro Fund restricted reserve. This represents the charity's contribution to the production of Y Cymro, the annual Regimental journal.

24

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2021

18. Investments

Cash or cash Listed
equivalents investments Total
£ £ £
Cost or valuation
At 1 April 2020 130,605 2,470,810 2,601,415
Additions 150,823 447,425 598,248
Disposals (226,733) (332,642) (559,375)
Fair value movements – 512,988 512,988
───────── ──────────── ────────────
At 31 March 2021 54,695 3,098,581 3,153,276
═════════ ════════════ ════════════
Impairment
At 1 April 2020 and 31 March 2021 –
════════════
Carrying amount
At 31 March 2021 54,695 3,098,581 3,153,276
═════════ ════════════ ════════════
At 31 March 2020 130,605 2,470,810 2,601,415
═════════ ════════════ ════════════
All investments shown above are held at valuation.
19. Debtors
2021 2020
£ £
Trade debtors 5,957 6,006
Prepayments and accrued income 1,107 2,097
─────── ───────
7,064 8,103
═══════ ═══════
20. Creditors: amounts falling due within one year
2021 2020
£ £
Accruals and deferred income 13,443 25,400
════════ ════════

25

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2021

21. Analysis of charitable funds

Unrestricted funds

At Gains and At
1 Apr 2020 Income Expenditure Transfers losses 31 Mar 2021
£ £ £ £ £ £
General funds 793,038 102,034 (67,939) (8,186) 256,494 1,075,441
═════════ ═════════ ════════ ═══════ ═════════ ════════════
At Gains and At
1 Apr 2019 Income Expenditure Transfers losses 31 Mar 2020
£ £ £ £ £ £
General funds 1,416,112 123,197 (558,828) (6,706) (180,737) 793,038
════════════ ═════════ ═════════ ═══════ ═════════ ═════════
Restricted funds
At Gains and At
1 Apr 2020 Income Expenditure Transfers losses 31 Mar 2021
£ £ £ £ £ £
Benevolence fund 1,864,720 80,278 (55,172) – 256,494 2,146,320
Y Cymro Fund – 1,636 (9,822) 8,186 – –
The Officers'
Society Fund 9,459 2,860 (2,767) – – 9,552
──────────── ──────── ──────── ─────── ───────── ────────────
1,874,179 84,774 (67,761) 8,186 256,494 2,155,872
════════════ ════════ ════════ ═══════ ═════════ ════════════
At Gains and At
1 Apr 2019 Income Expenditure Transfers losses 31 Mar 2020
£ £ £ £ £ £
Benevolence fund 2,018,160 98,323 (71,026) – (180,737) 1,864,720
Y Cymro Fund – 3,646 (10,352) 6,706 – –
The Officers'
Society Fund 8,305 10,150 (8,996) – – 9,459
──────────── ───────── ──────── ─────── ───────── ────────────
2,026,465 112,119 (90,374) 6,706 (180,737) 1,874,179
════════════ ═════════ ════════ ═══════ ═════════ ════════════

26

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2021

21. Analysis of charitable funds (continued)

Welfare fund

The fund represents income which can only be spent on specific items which fall under the welfare restricted fund category.

Benevolence fund

The fund represents income which can only be spent on specific items which fall under the benevolence restricted fund category. Examples of qualifying expenditure include repairs and adaptations to ex-service men and women's homes, assistance with mobility and assistance with priority debt such as rent arrears or light and heating costs.

Y Cymro

The is the Regimental Journal of the Royal Welsh. It is produced annually and is a full colour, 100+ page magazine. The journal is distributed to regular and reserve officers and soldiers, comrades, regimental bereaved widows and their families and other key people in Wales. It usually has a circulation of 1,500 copies.

The Officers' Society

The Officers' Society organises lunches and dinners with the main event being the Annual Dinner, usually taking place in November in Cardiff. It also uses funds to subsidise sporting events for all members of the Regimental Family.

22. Analysis of net assets between funds

Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Investments 997,696 2,155,580 3,153,276
Current assets 85,366 6,114 91,480
Creditors less than 1 year (7,621) (5,822) (13,443)
──────────── ──────────── ────────────
Net assets 1,075,441 2,155,872 3,231,313
════════════ ════════════ ════════════
Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Investments 823,088 1,778,327 2,601,415
Current assets (23,060) 114,262 91,202
Creditors less than 1 year (6,990) (18,410) (25,400)
───────── ──────────── ────────────
Net assets 793,038 1,874,179 2,667,217
═════════ ════════════ ════════════

27

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2021

23. Financial instruments

The carrying amount for each category of financial instrument is as follows:

2021 2020
£ £
Financial assets that are debt instruments measured at amortised cost
Financial assets that are debt instruments measured at amortised
cost 146,175 221,807
═════════ ═════════
Financial assets that are equity instruments measured at cost less impairment
Financial assets that are equity instruments measured at cost less
impairment 3,098,581 2,470,810
════════════ ════════════
Financial liabilities measured at amortised cost
Financial liabilities measured at amortised cost 13,443 25,400
════════ ════════

24. Analysis of changes in net debt

At
At 1 Apr 2020 Cash flows 31 Mar 2021
£ £ £
Cash at bank and in hand 83,099 1,317 84,416
════════ ═══════ ════════

28