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2023-03-31-accounts

CHARITY REGISTRATION NUMBER: 1166089

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Financial Statements

31 March 2023

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 2023

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 2023

The trustees present their report and the financial statements of the charity for the year ended 31 March 2023.

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 Major General CBK Barry CBE - Chairman (Ex Officio) Lt Col DL Evans (Appointed 9 September 2022) Captain (Retd) DJ Hitchcock OBE Colonel NJ Lock OBE Captain (Retd) RJE Minter-Kemp Lt Col MS Powell (Resigned 9 September 2022) Lt Col RC Streatfeild (Resigned 1 August 2022) Lt Col EMG Willcox (Appointed 1 August 2022)

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 Evelyn Partners 45 Gresham Street London EC2V 7BG

1

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Trustees' Annual Report (continued)

Year ended 31 March 2023

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, Evelyn Partners. Annual training will be offered at the next full meeting of the Board in June 2023.

2

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Trustees' Annual Report (continued)

Year ended 31 March 2023

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 2023

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 refereed to the board of trustees for their approval.

Achievements and performance

During the past financial year the Foundation has seen a steady increase in grants being made post 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 2023

Achievements and performance (continued)

Investment performance

The trustees were satisfied with the management of the fund's investments which generated income of £80,260 (2022: £81,776, 3.5% yield), a yield of just over 3.2% on the book cost of the listed investments.

The charity has an Investment Sub-Committee which is 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:

Benevolenc Welfare Welfare
e restricted unrestricted restricted Total
£ £ £ £
Surplus/(Deficit) before investment
losses 5,909 (60,420) (1,066) (55,577)
Investment losses (106,869) (106,869) – (213,738)
───────── ───────── ──────── ─────────
Total deficit for year (100,960)
═════════		 (167,289)
═════════		 (1,066)
════════		 (269,315)
═════════

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 £26,833 (2022: £119,043).

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 2023

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 2023

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 6 June 2023 and signed on behalf of the board of trustees by:

Major General CBK Barry CBE - 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 2023

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 2023 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 2023

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 2023

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:

" By enquiring with senior management and those charged with governance all areas of risk identified were considered and any potential litigation or claim, if any, were noted

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 2023

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

6 June 2023

11

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Statement of Financial Activities

Year ended 31 March 2023

2023 2022
Unrestricted Restricted
funds funds Total funds Total funds
Note £ £ £ £
Income and endowments
Donations and legacies 4 6,118 7,829 13,947 15,057
Charitable activities 5 32,496 33,822 66,318 70,021
Other trading activities 6 9,693 8,016 17,709 21,824
Investment income 7 40,418 40,418 80,836 81,787
──────── ──────── ───────── ─────────
Total income 88,725 90,085 178,810 188,689
════════ ════════ ═════════ ═════════
Expenditure
Expenditure on raising funds:
Investment management costs 8 12,142 12,142 24,284 26,865
Expenditure on charitable activities 9,10 128,764 81,339 210,103 138,449
───────── ──────── ───────── ─────────
Total expenditure 140,906 93,481 234,387 165,314
═════════ ════════ ═════════ ═════════
Net (losses)/gains on investments 14 (106,869) (106,869) (213,738) 131,202
───────── ───────── ───────── ─────────
Net (expenditure)/income (159,050) (110,265) (269,315) 154,577
═════════ ═════════ ═════════ ═════════
Transfers between funds (8,239) 8,239 – –
───────── ───────── ───────── ─────────
Net movement in funds (167,289) (102,026) (269,315) 154,577
Reconciliation of funds
Total funds brought forward 1,148,447 2,237,444 3,385,891 3,231,314
──────────── ──────────── ──────────── ────────────
Total funds carried forward 981,158 2,135,418 3,116,576 3,385,891
════════════ ════════════ ════════════ ════════════

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 29 form part of these financial statements.

12

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Statement of Financial Position

31 March 2023

2023 2022
Note £ £
Fixed assets
Investments 18 3,016,198 3,253,490
Current assets
Debtors 19 8,400 7,863
Cash at bank and in hand 108,513 137,702
───────── ─────────
116,913 145,565
Creditors: amounts falling due within one year 20 16,535 13,164
───────── ─────────
Net current assets 100,378 132,401
──────────── ────────────
Total assets less current liabilities 3,116,576 3,385,891
──────────── ────────────
Net assets 3,116,576 3,385,891
════════════ ════════════
Funds of the charity
Restricted funds 2,135,418 2,237,444
Unrestricted funds 981,158 1,148,447
──────────── ────────────
Total charity funds 21 3,116,576
════════════		 3,385,891
════════════

These financial statements were approved by the board of trustees and authorised for issue on 6 June 2023, and are signed on behalf of the board by:

Major General CBK Barry CBE - Chairman (Ex Officio) Trustee

The notes on pages 15 to 29 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 2023

2023 2022
£ £
Cash flows from operating activities
Net (expenditure)/income (269,315) 154,577
Adjustments for:
Net (losses)/gains on investments 213,738 (131,202)
Dividends, interest and rents from investments (80,260) (81,776)
Other interest receivable and similar income (576) (11)
Accrued expenses/(income) 3,371 (278)
Changes in:
Trade and other debtors (537) (799)
───────── ─────────
Cash generated from operations (133,579) (59,489)
Interest received 576 11
───────── ────────
Net cash used in operating activities (133,003) (59,478)
═════════ ════════
Cash flows from investing activities
Dividends, interest and rents from investments 80,260 81,776
Purchases of other investments (440,633) (558,606)
Proceeds from sale of other investments 464,187 589,594
───────── ─────────
Net cash from investing activities 103,814 112,764
═════════ ═════════
Net (decrease)/increase in cash and cash equivalents (29,189) 53,286
Cash and cash equivalents at beginning of year 137,702 84,416
───────── ─────────
Cash and cash equivalents at end of year 108,513 137,702
═════════ ═════════

The notes on pages 15 to 29 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 2023

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 2023

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.

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The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2023

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 2023

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.

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The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2023

4. Donations and legacies

Unrestricted Restricted Total Funds
Funds Funds 2023
£ £ £
Donations
Royal Welsh Club – 5,939 5,939
The Regimental Journal - Y Cymry Brenhinol – 1,890 1,890
General donations 6,118 – 6,118
─────── ─────── ────────
6,118 7,829 13,947
═══════ ═══════ ════════
Unrestricted Restricted Total Funds
Funds Funds 2022
£ £ £
Donations
Royal Welsh Club – 570 570
The Regimental Journal - Y Cymry Brenhinol – 2,455 2,455
General donations 10,044 1,988 12,032
──────── ─────── ────────
10,044 5,013 15,057
════════ ═══════ ════════
5. Charitable activities
Unrestricted Restricted Total Funds
Funds Funds 2023
£ £ £
Days Pay Scheme 32,496 33,822 66,318
════════ ════════ ════════
Unrestricted Restricted Total Funds
Funds Funds 2022
£ £ £
Days Pay Scheme 34,310 35,711 70,021
════════ ════════ ════════
6. Other trading activities
Unrestricted Restricted Total Funds
Funds Funds 2023
£ £ £
Rugby 2,510 – 2,510
PRI income 7,183 – 7,183
Grant income – – –
Memorial income – 216 216
Officers society – 7,800 7,800
─────── ─────── ────────
9,693 8,016 17,709
═══════ ═══════ ════════

19

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2023

6. Other trading activities (continued)

Unrestricted Restricted Total Funds
Funds Funds 2022
£ £ £
Rugby 2,840 – 2,840
PRI income 5,951 – 5,951
Grant income – 2,400 2,400
Memorial income 1,875 – 1,875
Officers society – 8,758 8,758
──────── ──────── ────────
10,666 11,158 21,824
════════ ════════ ════════

7. Investment income

Unrestricted Restricted Total Funds
Funds Funds 2023
£ £ £
Income from listed investments 40,130 40,130 80,260
Bank interest receivable 288 288 576
──────── ──────── ────────
40,418 40,418 80,836
════════ ════════ ════════
Unrestricted Restricted Total Funds
Funds Funds 2022
£ £ £
Income from listed investments 40,888 40,888 81,776
Bank interest receivable 6 5 11
──────── ──────── ────────
40,894 40,893 81,787
════════ ════════ ════════
Investment management costs
Unrestricted Restricted Total Funds
Funds Funds 2023
£ £ £
Portfolio management 12,142 12,142 24,284
════════ ════════ ════════
Unrestricted Restricted Total Funds
Funds Funds 2022
£ £ £
Portfolio management 13,432 13,433 26,865
════════ ════════ ════════

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 2023

9. Expenditure on charitable activities by fund type

Unrestricted Restricted Total Funds
Funds Funds 2023
£ £ £
Charitable activities 124,450 76,065 200,515
Support costs 4,314 5,274 9,588
───────── ──────── ─────────
128,764 81,339 210,103
═════════ ════════ ═════════
Unrestricted Restricted Total Funds
Funds Funds 2022
£ £ £
Charitable activities 63,878 66,341 130,219
Support costs 4,115 4,115 8,230
──────── ──────── ─────────
67,993 70,456 138,449
════════ ════════ ═════════

21

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2023

10. Expenditure on charitable activities by activity type

Activities
undertaken
Grant funding		 Total funds Total fund
directly of activities Support costs 2023 2022
£ £ £ £ £
Charitable activities 82,759 117,756 62 200,577 130,267
Governance costs – – 9,526 9,526 8,182
──────── ───────── ─────── ───────── ─────────
82,759 117,756 9,588 210,103 138,449
════════ ═════════ ═══════ ═════════ ═════════

Activities directly undertaken can be further analysed as:

2023 2022
£ £
Benevolence 20,093 20,058
Colonel of the Regiment 50 52
Community Engagements – 1,077
Comrades 701 255
General expenses 3,416 5,841
Memorials 1,777 2,317
Officers' Society 8,866 10,134
PRI expenditure 11,811 6,669
RMAS 2,572 2,497
Recruiting 11,412 11,000
Refreshments & hosting 269 96
RHQ expenses 4,263 4,847
Royal Welsh Club 3,167 557
Rugby expenses 2,512 2,842
Wreaths 1,721 1,251
Y Cymry Brenhinol expenses 10,129 9,540
──────── ────────
82,759 79,033
════════ ════════
Grants (note 12) 117,756 51,186
Share of support costs (note 11) 62 48
Share of governance costs (note 11) 9,526 8,182
───────── ────────
210,103 138,449
═════════ ════════
Analysis by fund
Unrestricted funds 128,764 67,993
Restricted funds 81,339 70,456
───────── ─────────
210,103 138,449
═════════ ═════════

22

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2023

11. Analysis of support costs

Charitable Governance
activities costs Total 2023 Total 2022
£ £ £ £
Bank charges 62 – 62 48
Audit fees – 6,000 6,000 5,450
Accountancy fees – 2,566 2,566 2,732
Legal fees 960 – 960 –
─────── ─────── ─────── ───────
1,022 8,566 9,588 8,230
═══════ ═══════ ═══════ ═══════
Analysis of grants
Benevolence Grants:
2023 2022
£ £
ABF The Soldiers Charity 10,716 10,404
The Royal Welsh Club 4,000 -
Corp of Drums 75 75
SP Energy Retail Limited 2,400 2,400
Valda Energy Limited 2,000 –
1R Welsh 7,092 6,388
The Friends of Brecon Cathedral 20 20
The Friends of Llandaff Cathedral 100 25
Other benevolence grants 1,815 700
──────── ────────
28,218 20,012
════════ ════════
Welfare Grants:
2023 2022
£ £
1R Welsh 68,747 23,090
3R Welsh 13,525 3,027
Clwyd & Gwynedd ACF – 2,080
Dyfed & Glamorgan ACF 2,142 –
Zulu King's Coronation 1,521 –
RRW Pontypridd Comrades Branch – 1,000
Officers' Society – 1,000
Offa Community Council 3,000 –
Other welfare grants 603 977
──────── ────────
89,538 31,174
════════ ════════
Total Grants 117,756 51,186
════════ ════════

12. Analysis of grants

The charity awarded grants to 15 institutions (2022: 15) and 12 individuals (2022: 1) 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 2023

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 (losses)/gains on investments

Unrestricted Restricted Total Funds
Funds Funds 2023
£ £ £
Gains/(losses) on listed investments (106,869) (106,869) (213,738)
═════════ ═════════ ═════════
Unrestricted Restricted Total Funds
Funds Funds 2022
£ £ £
Gains/(losses) on listed investments 65,601
════════		 65,601
════════		 131,202
═════════

15. Employees

The charity had no employees during the financial year (2022: 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 (2022: £nil).

No trustees were reimbursed for expenses during the year (2022: £nil).

17. Transfers between funds

A transfer of £8,239 (2022: £7,085) has been made from unrestricted reserves to the Y Cymry Brenhinol restricted reserve. This represents the charity's contribution to the production of Y Cymry Brenhinol, 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 2023

18. Investments

Cash or cash Listed
equivalents investments Total
£ £ £
Cost or valuation
At 1 April 2022 76,378 3,177,112 3,253,490
Additions 80,243 360,390 440,633
Disposals (106,903) (357,284) (464,187)
Fair value movements – (213,738) (213,738)
───────── ──────────── ────────────
At 31 March 2023 49,718 2,966,480 3,016,198
═════════ ════════════ ════════════
Impairment
At 1 April 2022 and 31 March 2023 –
════════════
Carrying amount
At 31 March 2023 49,718 2,966,480 3,016,198
═════════ ════════════ ════════════
At 31 March 2022 76,378 3,177,112 3,253,490
═════════ ════════════ ════════════

All investments shown above are held at valuation.

Financial assets held at fair value

The investment portfolio is managed by Evelyn Partners and is valued at closing market value on 31 March 2023.

19. Debtors

2023 2022
£ £
Trade debtors 5,734 6,823
Prepayments and accrued income 2,666 1,040
─────── ───────
8,400 7,863
═══════ ═══════
20. Creditors: amounts falling due within one year
2023 2022
£ £
Accruals and deferred income 16,535 13,164
════════ ════════

25

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2023

21. Analysis of charitable funds

Unrestricted funds

At Gains and At
1 Apr 2022 Income Expenditure Transfers losses 31 Mar 2023
£ £ £ £ £ £
General funds 1,140,609 81,542 (129,095) (8,239) (106,869) 977,948
PRI fund 7,838 7,183 (11,811) – – 3,210
──────────── ──────── ───────── ─────── ───────── ─────────
1,148,447 88,725 (140,906) (8,239) (106,869) 981,158
════════════ ════════ ═════════ ═══════ ═════════ ═════════
At Gains and At
1 Apr 2021 Income Expenditure Transfers losses 31 Mar 2022
£ £ £ £ £ £
General funds 1,066,886 89,963 (74,756) (7,085) 65,601 1,140,609
PRI fund 8,556 5,951 (6,669) – – 7,838
──────────── ──────── ──────── ─────── ──────── ────────────
1,075,442 95,914 (81,425) (7,085) 65,601 1,148,447
════════════ ════════ ════════ ═══════ ════════ ════════════

26

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2023

21. Analysis of charitable funds (continued)

Restricted funds

Restricted funds
At Gains and At
1 Apr 2022 Income Expenditure Transfers losses 31 Mar 2023
£ £ £ £ £ £
Benevolence fund 2,229,255 74,456 (71,319) – (106,869) 2,125,523
The Regimental
Journal - Y Cymry
Brenhinol – 1,890 (10,129) 8,239 – –
The Officers'
Society Fund 8,176 7,800 (8,866) – – 7,110
Royal Welsh Club 13 5,939 (3,167) – – 2,785
──────────── ──────── ──────── ─────── ───────── ────────────
2,237,444 90,085 (93,481) 8,239 (106,869) 2,135,418
════════════ ════════ ════════ ═══════ ═════════ ════════════
At Gains and At
1 Apr 2021 Income Expenditure Transfers losses 31 Mar 2022
£ £ £ £ £ £
Benevolence fund 2,146,320 80,992 (63,658) – 65,601 2,229,255
The Regimental
Journal - Y Cymry
Brenhinol – 2,455 (9,540) 7,085 – –
The Officers'
Society Fund 9,552 8,758 (10,134) – – 8,176
Royal Welsh Club – 570 (557) – – 13
──────────── ──────── ──────── ─────── ──────── ────────────
2,155,872 92,775 (83,889) 7,085 65,601 2,237,444
════════════ ════════ ════════ ═══════ ════════ ════════════

27

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2023

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.

The Regimental Journal - Y Cymry Brenhinol

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.

Royal Welsh Club

The Royal Welsh Club is a restricted fund which represents income and expenditure in respect of mental health and wellbeing. The club aims to provide support to veterans and organise get togethers and events such as coffee mornings for veterans to meet and discuss any issues they may be experiencing.

22. Analysis of net assets between funds

Unrestricted Restricted Total Funds
Funds Funds 2023
£ £ £
Investments 954,325 2,061,873 3,016,198
Current assets 37,351 79,562 116,913
Creditors less than 1 year (10,518) (6,017) (16,535)
───────── ──────────── ────────────
Net assets 981,158 2,135,418 3,116,576
═════════ ════════════ ════════════
Unrestricted Restricted Total Funds
Funds Funds 2022
£ £ £
Investments 1,029,404 2,224,086 3,253,490
Current assets 125,597 19,968 145,565
Creditors less than 1 year (6,554) (6,610) (13,164)
──────────── ──────────── ────────────
Net assets 1,148,447 2,237,444 3,385,891
════════════ ════════════ ════════════

28

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2023

23. Financial instruments

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

2023 2022
£ £
Financial assets that are debt instruments measured at amortised cost
Financial assets that are debt instruments measured at amortised
cost 166,631 221,943
═════════ ═════════
Financial assets that are equity instruments measured at cost less impairment
Financial assets that are equity instruments measured at cost less
impairment 2,966,480 3,177,112
════════════ ════════════
Financial liabilities measured at amortised cost
Financial liabilities measured at amortised cost 16,535 13,164
════════ ════════
Analysis of changes in net debt
At
At 1 Apr 2022 Cash flows 31 Mar 2023
£ £ £
Cash at bank and in hand 137,702
═════════		 (29,189)
════════		 108,513
═════════

24. Analysis of changes in net debt

29