2024-03-31-accounts - The Royal Welsh Regimental Welfare And Benevolence Foundation

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CHARITY REGISTRATION NUMBER: 1166089

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Financial Statements

31 March 2024

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 2024

	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 following pages do not form part of the financial statements
Detailed statement of financial activities	29
Notes to the detailed statement of financial activities	31

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Trustees' Annual Report

Year ended 31 March 2024

The trustees present their report and the financial statements of the charity for the year ended 31 March 2024.

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 (Ex Officio)
	Captain (Retd) DJ Hitchcock OBE
	Colonel NJ Lock OBE
	Captain (Retd) RJE Minter-Kemp
	Lt Col EMG Willcox MBE (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	Evelyn Partners
	45 Gresham Street
	London
	EC2V 7BG

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Trustees' Annual Report (continued)

Year ended 31 March 2024

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:

The Royal Regiment of Wales Common Investment Fund (charity numbers 1085032 and 266388);
Regimental Association The Royal Welsh (charity number 1153759);
The Regiment of Wales Benevolent Fund (charity number 264120).

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 2024.

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Trustees' Annual Report (continued)

Year ended 31 March 2024

Objectives and activities

Objects and aims of the charity

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:
a) fostering esprit de corps and comradeship and supporting cadet units affiliated to the Royal Welsh;
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;
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
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;
To advance the education of members of the Royal Welsh, or any component or predecessor regiment or unit;
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;
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
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 Headquarters during the year.

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Trustees' Annual Report (continued)

Year ended 31 March 2024

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:

1st Battalion £41,511
3rd Battalion £14,362
ACF in Wales £2,206
Adventure training and sports £675
Fund benevolence and hardship cases totalling £28,443.17 for 122 cases.
Benevolence grants were made to
Pozitive Energy Limited/SP Retail Energy Limited in respect of the VC Gallery of Haverfordwest
Valda Energy Ltd in respect of VC Gallery of Pembroke Dock
The Corps of Drums
The ABF The Soldiers Charity
Friends of Llandaff Cathedral
Friends of Brecon Cathedral
Fund buglers to play the Last Post at veterans' funerals

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Trustees' Annual Report (continued)

Year ended 31 March 2024

Achievements and performance (continued)

Investment performance

The trustees were satisfied with the management of the fund's investments which generated income of £85,604 (2023: £80,260).

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:

To implement effectively the investment strategy agreed by the charity trustees; and
With the participation of the duly appointed Investment Advisor to review the investment strategy from time to time, and recommend changes to the Board.

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/(Deficit) before investment
gains	18,842	(11,701)	(11,303)	(4,162)
Investment gains	92,906	92,907	–	185,813
	`─────────`	`────────`	`────────`	`─────────`
Total surplus/(deficit) for year	111,748 `═════════`	81,206 `════════`	(11,303) `════════`	181,651 `═════════`

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 £49,059 (2023: £26,833).

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.

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Trustees' Annual Report (continued)

Year ended 31 March 2024

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

The portfolio will be measured against the MSCI PIMFA Balanced Index as the primary benchmark.
The primary benchmark (being 17.5% UK government bonds, 33.8% UK Equities, 36.7% overseas Equities, 10% Alternatives and 5% Cash) will be used for additional relative analysis, subject to agreement with the Investment Manager of the percentage allocations by country and sector.
Further performance analysis of the portfolio will also be undertaken against the ARC Balanced Asset Charity and ARC Sterling GBP Steady Growth Charity Indices.

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:

Substantial fall in investment income - the charity meets with its Investment Managers twice yearly to ensure that they are satisfied with the risk and return on the portfolio.
Significant incident occurring on an operation which may require the charity to provide significant financial aid - the charity reviews its funds and finances regularly to ensure that should such an event occur the charity has sufficient reserves and funds to fulfil its commitments.
Significant fall in investment value due to circumstances outside the control of the charity.

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).

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Trustees' Annual Report (continued)

Year ended 31 March 2024

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:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the applicable Charities SORP;
make judgments and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

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 4 June 2024 and signed on behalf of the board of trustees by:

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

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 2024

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 2024 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:

give a true and fair view of the state of the charity's affairs as at 31 March 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
have been prepared in accordance with the requirements of the Charities Act 2011.

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.

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 2024

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:

the information given in the trustees' report is inconsistent in any material respect with the financial statements; or
adequate accounting records have not been kept; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.

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.

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 2024

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

Ensuring by enquiry that there were no issues of non-compliance with laws and regulations relating to tax and compliance
By obtaining an understanding of the company's policies and procedures on compliance with laws and regulations, and with best accounting practice
Noting issues discussed with the Board and the Senior Management Team as this relates to risks faced by the company
Reviewing disclosures in the financial statements and testing to supporting documentation to assess compliance with applicable laws and regulations
Auditing the risk of management override of controls including testing journal entries and other adjustments for appropriateness and evaluating the business rationale of significant transactions outside the normal course of business
Considering the effect on risk to the company of the Covid-19 pandemic and the UK's departure from the EU. In particular to note whether any such issues would affect the company's ability to continue to operate.

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:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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 2024

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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

4 June 2024

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Statement of Financial Activities

Year ended 31 March 2024

			2024		2023
		Unrestricted	Restricted
		funds	funds	Total funds	Total funds
	Note	£	£	£	£
Income and endowments
Donations and legacies	4	5,428	1,529	6,957	12,057
Charitable activities	5	32,010	33,316	65,326	66,318
Other trading activities	6	15,091	12,344	27,435	19,599
Investment income	7	43,597	43,597	87,194	80,836
		`────────`	`────────`	`─────────`	`─────────`
Total income		96,126	90,786	186,912	178,810
		`════════`	`════════`	`═════════`	`═════════`
Expenditure
Expenditure on raising funds:
Investment management costs	8	12,165	12,165	24,330	24,284
Expenditure on charitable activities	9,10	95,662	71,082	166,744	210,103
		`─────────`	`────────`	`─────────`	`─────────`
Total expenditure		107,827	83,247	191,074	234,387
		`═════════`	`════════`	`═════════`	`═════════`
Net gains/(losses) on investments	14	92,907	92,906	185,813	(213,738)
		`─────────`	`─────────`	`─────────`	`─────────`
Net income/(expenditure)		81,206	100,445	181,651	(269,315)
		`═════════`	`═════════`	`═════════`	`═════════`
Transfers between funds		(8,458)	8,458	–	–
		`─────────`	`─────────`	`─────────`	`─────────`
Net movement in funds		72,748	108,903	181,651	(269,315)
Reconciliation of funds
Total funds brought forward		981,158	2,135,418	3,116,576	3,385,891
		`────────────`	`────────────`	`────────────`	`────────────`
Total funds carried forward		1,053,906	2,244,321	3,298,227	3,116,576
		`════════════`	`════════════`	`════════════`	`════════════`

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 27 form part of these financial statements.

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Statement of Financial Position

31 March 2024

		2024	2023
	Note	£	£
Fixed assets
Investments	18	3,175,874	3,016,198
Current assets
Debtors	19	18,231	8,400
Cash at bank and in hand		118,068	108,513
		`─────────`	`─────────`
		136,299	116,913
Creditors: amounts falling due within one year	20	13,946	16,535
		`─────────`	`─────────`
Net current assets		122,353	100,378
		`────────────`	`────────────`
Total assets less current liabilities		3,298,227	3,116,576
		`────────────`	`────────────`
Net assets		3,298,227	3,116,576
		`════════════`	`════════════`
Funds of the charity
Restricted funds		2,244,321	2,135,418
Unrestricted funds		1,053,906	981,158
		`────────────`	`────────────`
Total charity funds	21	3,298,227 `════════════`	3,116,576 `════════════`

These financial statements were approved by the board of trustees and authorised for issue on 4 June 2024, and are signed on behalf of the board by:

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

The notes on pages 15 to 27 form part of these financial statements.

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Statement of Cash Flows

Year ended 31 March 2024

	2024	2023
	£	£
Cash flows from operating activities
Net income/(expenditure)	181,651	(269,315)
Adjustments for:
Net gains/(losses) on investments	(185,813)	213,738
Dividends, interest and rents from investments	(85,604)	(80,260)
Other interest receivable and similar income	(1,590)	(576)
Accrued (income)/expenses	(2,589)	3,371
Changes in:
Trade and other debtors	(9,831)	(537)
	`─────────`	`─────────`
Cash generated from operations	(103,776)	(133,579)
Interest received	1,590	576
	`─────────`	`─────────`
Net cash used in operating activities	(102,186)	(133,003)
	`═════════`	`═════════`
Cash flows from investing activities
Dividends, interest and rents from investments	85,604	80,260
Purchases of other investments	(3,084,629)	(440,633)
Proceeds from sale of other investments	3,110,766	464,187
	`────────────`	`─────────`
Net cash from investing activities	111,741	103,814
	`════════════`	`═════════`
Net increase/(decrease) in cash and cash equivalents	9,555	(29,189)
Cash and cash equivalents at beginning of year	108,513	137,702
	`─────────`	`─────────`
Cash and cash equivalents at end of year	118,068	108,513
	`═════════`	`═════════`

The notes on pages 15 to 27 form part of these financial statements.

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements

Year ended 31 March 2024

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.

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.

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:

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2024

3. Accounting policies (continued)

Incoming resources (continued)

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.

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.

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2024

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.

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2024

4. Donations and legacies

		Unrestricted	Restricted	Total Funds
		Funds	Funds	2024
		£	£	£
	Donations
	Royal Welsh Club donations	–	1,454	1,454
	General donations	5,428	75	5,503
		`───────`	`───────`	`───────`
		5,428	1,529	6,957
		`═══════`	`═══════`	`═══════`
		Unrestricted	Restricted	Total Funds
		Funds	Funds	2023
		£	£	£
	Donations
	Royal Welsh Club donations	–	5,939	5,939
	General donations	6,118	–	6,118
		`───────`	`───────`	`────────`
		6,118	5,939	12,057
		`═══════`	`═══════`	`════════`
5.	Charitable activities
		Unrestricted	Restricted	Total Funds
		Funds	Funds	2024
		£	£	£
	Days Pay Scheme	32,010	33,316	65,326
		`════════`	`════════`	`════════`
		Unrestricted	Restricted	Total Funds
		Funds	Funds	2023
		£	£	£
	Days Pay Scheme	32,496	33,822	66,318
		`════════`	`════════`	`════════`
6.	Other trading activities
		Unrestricted	Restricted	Total Funds
		Funds	Funds	2024
		£	£	£
	Rugby	2,460	–	2,460
	PRI income	6,031	–	6,031
	Memorial income	–	134	134
	Officers' Society	–	10,850	10,850
	Dragon Connect	6,600	–	6,600
	The Regimental Journal - Y Cymry Brenhinol
	subscriptions	–	1,360	1,360
		`────────`	`────────`	`────────`
		15,091	12,344	27,435
		`════════`	`════════`	`════════`

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2024

6. Other trading activities (continued)

	Unrestricted	Restricted	Total Funds
	Funds	Funds	2023
	£	£	£
Rugby	2,510	–	2,510
PRI income	7,183	–	7,183
Memorial income	–	216	216
Officers' Society	–	7,800	7,800
Dragon Connect	–	–	–
The Regimental Journal - Y Cymry Brenhinol
subscriptions	–	1,890	1,890
	`───────`	`───────`	`────────`
	9,693	9,906	19,599
	`═══════`	`═══════`	`════════`

7. Investment income

	Unrestricted	Restricted	Total Funds
	Funds	Funds	2024
	£	£	£
Income from listed investments	42,802	42,802	85,604
Bank interest receivable	795	795	1,590
	`────────`	`────────`	`────────`
	43,597	43,597	87,194
	`════════`	`════════`	`════════`
	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
	`════════`	`════════`	`════════`
Investment management costs
	Unrestricted	Restricted	Total Funds
	Funds	Funds	2024
	£	£	£
Portfolio management	12,165	12,165	24,330
	`════════`	`════════`	`════════`
	Unrestricted	Restricted	Total Funds
	Funds	Funds	2023
	£	£	£
Portfolio management	12,142	12,142	24,284
	`════════`	`════════`	`════════`

8. Investment management costs

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2024

9. Expenditure on charitable activities by fund type

	Unrestricted	Restricted	Total Funds
	Funds	Funds	2024
	£	£	£
Charitable activities	91,017	66,437	157,454
Support costs	4,645	4,645	9,290
	`────────`	`────────`	`─────────`
	95,662	71,082	166,744
	`════════`	`════════`	`═════════`
	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
	`═════════`	`════════`	`═════════`

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2024

10. Expenditure on charitable activities by activity type

	Activities
	undertaken	Grant funding		Total funds	Total fund
	directly	of activities Support costs		2024	2023
	£	£	£	£	£
Charitable activities	80,522	76,932	62	157,516	200,577
Governance costs	–	–	9,228	9,228	9,526
	`────────`	`────────`	`───────`	`─────────`	`─────────`
	80,522	76,932	9,290	166,744	210,103
	`════════`	`════════`	`═══════`	`═════════`	`═════════`

Activities directly undertaken can be further analysed as:

	2024	2023
	£	£
Benevolence	20,000	20,093
Chapels	68	–
Colonel of the Regiment	55	50
Community Engagements	111	–
Comrades	782	701
Dragon Connect	5,800	–
General expenses	8,607	3,416
Memorials	268	1,777
Officers' Society	13,695	8,866
PRI expenditure	2,639	11,811
RMAS	–	2,572
Recruiting	9,141	11,412
Refreshments & hosting	234	269
RHQ expenses	3,574	4,263
Royal Welsh Club	882	3,167
Rugby expenses	2,462	2,512
Wreaths	2,386	1,721
Y Cymry Brenhinol expenses	9,818	10,129
	`────────`	`────────`
	80,522	82,759
	`════════`	`════════`
Grants (note 12)	76,932	117,756
Share of support costs (note 11)	62	62
Share of governance costs (note 11)	9,228	9,526
	`────────`	`─────────`
	166,744	210,103
	`════════`	`═════════`
Analysis by fund
Unrestricted funds	95,662	128,764
Restricted funds	71,082	81,339
	`─────────`	`─────────`
	166,744	210,103
	`═════════`	`═════════`

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2024

11. Analysis of support costs

	Charitable	Governance
	activities	costs	Total 2024	Total 2023
	£	£	£	£
Bank charges	62	–	62	62
Audit fees	–	6,240	6,240	6,000
Accountancy fees	–	2,988	2,988	2,566
Legal fees	–	–	–	960
	`────`	`───────`	`───────`	`───────`
	62	9,228	9,290	9,588
	`════`	`═══════`	`═══════`	`═══════`

12. Analysis of grants

Benevolence Grants:

Benevolence Grants:
	2024	2023
	£	£
ABF The Soldiers Charity	11,037	10,716
The Royal Welsh Club	–	4,000
1 R WELSH	–	7,092
Pozitive Energy Limited (formerly SP Energy Retail Limited)	2,400	2,400
Valda Energy Limited	2,400	2,000
Corp of Drums	75	75
The Friends of Brecon Cathedral	20	20
The Friends of Llandaff Cathedral	100	100
Other benevolence grants	540	1,815
	`────────`	`────────`
	16,572	28,218
	`════════`	`════════`
Welfare Grants:
	2024	2023
	£	£
1 R WELSH	41,511	68,747
3 R WELSH	14,862	13,525
Wales ACF	2,206	2,142
Zulu King's Coronation	–	1,521
Officers' Society	1,000	–
Offa Community Council	–	3,000
Other welfare grants	781	603
	`────────`	`────────`
	60,360	89,538
	`════════`	`════════`
Total Grants	76,932	117,756
	`════════`	`════════`

The charity awarded grants to 14 institutions (2023: 15) and 1 individual (2023: 12) during the year.

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.

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2024

14. Net gains/(losses) on investments

	Unrestricted	Restricted	Total Funds
	Funds	Funds	2024
	£	£	£
Gains/(losses) on listed investments	92,907	92,906	185,813
	`════════`	`════════`	`═════════`
	Unrestricted	Restricted	Total Funds
	Funds	Funds	2023
	£	£	£
Gains/(losses) on listed investments	(106,869) `═════════`	(106,869) `═════════`	(213,738) `═════════`

15. Employees

The charity had no employees during the financial year (2023: none). The Regimental Secretary and Assistant Regimental Secretary, who administer the foundation, are employed by MOD.

16. Trustee remuneration and expenses

No remuneration or other benefits from employment with the charity or a related entity were received by the trustees (2023: £nil).

No trustees were reimbursed for expenses during the year (2023: £nil).

17. Transfers between funds

A transfer of £8,458 (2023: £8,239) 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.

18. Investments

	Cash or cash	Listed
	equivalents	investments	Total
	£	£	£
Cost or valuation
At 1 April 2023	49,718	2,966,480	3,016,198
Additions	1,578,641	1,505,988	3,084,629
Disposals	(1,618,415)	(1,492,351)	(3,110,766)
Fair value movements	–	185,813	185,813
	`────────────`	`────────────`	`────────────`
At 31 March 2024	9,944	3,165,930	3,175,874
	`════════════`	`════════════`	`════════════`
Impairment
At 1 April 2023 and 31 March 2024			–
			`════════════`
Carrying amount
At 31 March 2024	9,944	3,165,930	3,175,874
	`════════════`	`════════════`	`════════════`
At 31 March 2023	49,718	2,966,480	3,016,198
	`════════════`	`════════════`	`════════════`

All investments shown above are held at valuation.

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2024

18. Investments (continued)

Financial assets held at fair value

The investment portfolio is managed by Evelyn Partners and is valued at closing market value on 31 March 2024.

19. Debtors

	2024	2023
	£	£
Trade debtors	6,207	5,734
Prepayments and accrued income	12,024	2,666
	`────────`	`───────`
	18,231	8,400
	`════════`	`═══════`
Creditors: amounts falling due within one year
	2024	2023
	£	£
Accruals and deferred income	13,946	16,535
	`════════`	`════════`

20. Creditors: amounts falling due within one year

21. Analysis of charitable funds

Unrestricted funds

	At				Gains and		At
	1 Apr 2023	Income	Expenditure	Transfers	losses	31	Mar 2024
	£	£	£	£	£		£
General funds	977,948	90,095	(105,188)	(8,458)	92,907		1,047,304
PRI fund	3,210	6,031	(2,639)	–	–		6,602
	`─────────`	`────────`	`─────────`	`───────`	`────────`		`────────────`
	981,158	96,126	(107,827)	(8,458)	92,907		1,053,906
	`═════════`	`════════`	`═════════`	`═══════`	`════════`		`════════════`
	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 `═════════`

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2024

21. Analysis of charitable funds (continued)

Restricted funds

Restricted funds
	At				Gains and		At
	1 Apr 2023	Income	Expenditure	Transfers	losses	31	Mar 2024
	£	£	£	£	£		£
Benevolence fund	2,125,523	77,122	(58,852)	–	92,906		2,236,699
The Regimental
Journal - Y Cymry
Brenhinol	–	1,360	(9,818)	8,458	–		–
The Officers'
Society Fund	7,110	10,850	(13,695)	–	–		4,265
Royal Welsh Club	2,785	1,454	(882)	–	–		3,357
	`────────────`	`────────`	`────────`	`───────`	`────────`		`────────────`
	2,135,418	90,786	(83,247)	8,458	92,906		2,244,321
	`════════════`	`════════`	`════════`	`═══════`	`════════`		`════════════`
	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
	`════════════`	`════════`	`════════`	`═══════`	`═════════`		`════════════`

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2024

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.

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	2024
	£	£	£
Investments	1,004,847	2,171,027	3,175,874
Current assets	56,373	79,926	136,299
Creditors less than 1 year	(7,314)	(6,632)	(13,946)
	`────────────`	`────────────`	`────────────`
Net assets	1,053,906	2,244,321	3,298,227
	`════════════`	`════════════`	`════════════`
	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
	`═════════`	`════════════`	`════════════`

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2024

23. Financial instruments

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

	2024	2023
	£	£
Financial assets that are debt instruments measured at amortised cost
Financial assets that are debt instruments measured at amortised
cost	146,243	166,631
	`═════════`	`═════════`
Financial assets that are equity instruments measured at cost less impairment
Financial assets that are equity instruments measured at cost less
impairment	3,165,930	2,966,480
	`════════════`	`════════════`
Financial liabilities measured at amortised cost
Financial liabilities measured at amortised cost	13,946	16,535
	`═════════`	`════════`

24. Analysis of changes in net debt

					At
	At	1	Apr 2023	Cash flows	31 Mar 2024
			£	£	£
Cash at bank and in hand			108,513	9,555	118,068
			`═════════`	`═══════`	`═════════`