Trustees, Annual Report and Financial Statements South Wales Miners, Welfare Trust Fund Scheme Registered Charity Number 507439 For the year ended 31 December 2023 Page l of 27
South Wales Miners, Welfare Trust Fund Scheme Contents Page(s) Trustees, report 4-10 Auditors, report 11-12 Statement of Financial Activities 13 Balance sheet 14 Cash flow statement Is Notes to the financial statements 16-27 Page 2 of 27
South Wales Miners, Welfare Trust Fund Scbeme Trustees, Annual Report for the year ended 31 December 2023 Reference and administrative inforniation Charity Registration Number: 507439 Principal (Registered) olce. NUM Unit 2 Maritime Offices Woodland Teate Maesycoed Pontypridd CF37 IDZ Convaleseent Home: Court Royal Convalescent Home Southcliff Road Bournemouth Dorset BH2 5BE Trustees: Mr W Thomas Mr T O'sullivan OBE (deceased May 2023) Mr K T Williams Mr C Earland Mr M R Parsons Secretary: Mrs D Edwards Auditor5: R H Jeffs & Rowe 27128 Gelliwastad Road Pontypridd CF37 2BW Bankers: Unity Trust Bank PLC Nine Brindley Place Binningham BI 2HB Investment Advisors: Sarasin & Partners LLP Juxon House 100 St Pauls Churchyard London EC4M 8BU Page 3 of 27
South Wales Miners, Welfare Trust Fund Scheme Trnstees, Annual Report for the year ended 31 December 2023 The Trustees present their report and audited financial statements for the year ended 31 December 2023. Ob ectives and Activities The Trustees of the Charity hold the Trust monies upon trust to pay and apply the income arising there from in accordance with the provisions of the Trust Deed for such charitable purposes within the objects of the Organisation in any county, any part of which is for the time being comprised of the South Wales coalfield. The Trust Fund retains its consolidated status following the transfer into the Trust Fund of four other South Wales mining related Convalescent and Trust Funds on their subsisting Trusts, these being the Convalescent Home for the South Wales Mining Industry, David Davies Memorial Trusts, Hafod Miners, Welfare Women's Convalescent HoTne & Girls Camp and the South Wales & Monmouthshire Convalescent Hom¢ Endowment Fund Scheme. The objects of the largest of these charities, being the Convalescent Home charity, previously registered under registration number 206608, remain that of a convalescent home for beneficiaries of the South Wales Mining Industry, to include minework¢TS, fornier mineworkers and their dependants, all of whom are eligible upon having worked a minimum of 5 years in the South Wales mining industry. Governin Document The unincorporated Charity is governed by a Declaration of Trust dated 20th March 1978, as amended by a Supplemental Trust Deed dated 4 November 2013, and registered as a Charity with the Charity Comtnission with the number 507439. Recruitment and A ointment of Trustees New Trustees of the Charity are selected by the Trustee board taking into account the skills and life experien¢e of the effects of the mining industy and mining communities. Trustees are cqually representative of employers and employees and all new appointments are endorsed by CISWO. Upon appointment, the Trustees serve in office indefinitely or until vacation of their particular employed otTice, or voluntary resignation. Trustee Induction and Trainin The Charity has a structured induction policy, whereby any new Trustees are invited and encouraged to attend a mini series of short training sessions to familiarise themselves with the Charity and the context within which it operates. These are jointly lead by a deputation of the Trustees and the Secretary of the Charity and cover :_ The responsibilities of Charity Trustees. The governing documents which represent the cornerstone of the Charity and policy documents which set out the operational framework for the Charity. Resourcing and the current financial position as set out in the latest published accounts. Future plans and objectives. A question & answer pack has also been prepared drawing infonnation from the various Charity Commission publications signposted through the CoTnmission's guide the essential trustee" as a follow up to these sessions. This is distributed to all new Trustees along with the governing documents and the latest financial statements. Page 4 of 27
South Wales Millers, Welfare Trust Fund Scheme Trnstees, Annual Report for the yegr ended 31 December 2023 Risk Mana ement The Trustees have examined the major strategic, business and operational risks which the Charity faces and confirms that systems have been established to enable regular reports to be produced so that necessary steps can be taken to lessen these risks. anisational Structure The Charity has a Trustee body who meet quarterly and are responsible for the strategic direction and policy of the Charity. The Convalescent Home Manager has responsibility for the day to day operational management of the Home, the supervision of the Home's general staff team and client care. Achievements and Performanee The Consolidated charity's achievements and perforniance is best described under two headings, Coalfield Schemes of Benefit and Convalescence. Coalfield Schemes of Benefit The Trustees were pleased to offer capital support to Cwmdare Miners, Welfare Hall, enabling this well used community building to once again become water tight following defect issues with its roofing structure. The Trustees also provided contributory assistance to Bedlinog Miners, Welfare Association. The Trustees provided financial support to a select number of OAP and CISWO social groups to enable them to pursue their social activities. The Trustees have provided financial assistance in supporting an annual concert at Onllwyn Welfare where the renowned Tredegar Town Band perfonned, and once again made a ontributory financial assistance towards the Welsh Open Brass Band Championship, operating under the auspices of the South Wales Miners, Eisteddfod. The Trustees continued to grant aid the approved studies of eighteen students meeting the eligibility criterion, utilising available unrestricted funds from the Hafod Miners, Welfare Womens, Convalescent Home and Girls Catnp fund. Convalescence The trustees curtailed their ongoing rolling refurbishment programme, in anticipation of greater refurbishment expenditure in 2024, although the Trustees invested in some new rimeter fencing and endorsed the refurbishment of the upstairs lounge towards the latter part of the year. During 2023 the number of convalescent weeks taken was 1,968 out of a maximum possible number of convalescent weeks of 2,31 O, equating to an overall Capacity utilisation factor of 85.2% (2022 - 860/0). To a degree, the effects of the Covid pandemic softened demand during the early weeks of the year, and the Trustees shall review demand levels for subsequent periods. The following page gives an itemisation of the intake numbers on a weekly basis, along with comparatives for the previous year" Page 5 of 27
South Wales Miners, Welfare Trust Fund Scheme Trustees, Annual Report for the year ended 31 December 2023 Week Commencing JANUARY TUES 2023 10 28 20 20 14 25 29 34 36 39 39 13 19 Week CommeneAng JANUARY TUES 2022 CLOSED CLOSED CLOSED 10 17 24 31 18 25 FEBRUARY FEBRUARY 21 19 35 24 33 35 32 36 40 40 40 47 43 47 47 44 42 43 42 45 39 46 43 47 45 42 45 44 44 46 47 41 44 46 36 46 44 44 39 14 21 28 15 22 MARCH MARCH 14 21 28 15 22 29 APIUL 45 45 42 42 46 46 46 45 40 45 47 45 44 41 45 47 45 45 46 43 47 45 46 46 45 43 43 44 44 43 46 APRIL 12 19 26 18 25 MAY MAY 10 17 24 31 16 23 30 JUNE 13 20 27 14 21 28 JULY JULY 12 19 26 18 25 AUGUST AUGUST 15 22 29 16 23 30 SEPTEMBER SEFfEMBER 12 19 26 13 20 27 OCTOBER OCTOBER io 17 24 18 25 Page 6 of 27
South Wales Miners, Welfare Trust Fund Scheme Trustees, Annual Report for the year ended 31 December 2023 NOVEMBER 45 47 47 45 NOVEMBER 42 46 47 46 43 40 CLOSED CLOSED CLOSED 1860 14 21 28 15 22 29 DECEMBER 46 30 Closed Closed 1968 DECEMBER 12 19 26 13 20 27 TOTALS TOTALS The cost of accommodating an individual at the Home during 2023 was £511.29 (2022 £482.52). The following table gives a breakdown of component costs:_ 2023 R•te Per 2022 RAte Per CoDvalt5cent Convalescent Amount Wtek Arnoulll Week l. Provisions 2. Salaries and Wages 3. Establishment Costs 4. Administration Expenses 151,697 428,059 153,227 45,244 77 218 78 23 140,030 366,971 100,273 58,243 75 197 54 31 778,227 124,384 21,232 37,995 395 63 665,517 123,460 17,387 37,995 357 66 5. Convalescents Travel 6. Entertainment 7. Depreciation 19 20 961,838 489 844,359 454 BUILDING FUND 8. Refurbishment, Repairs and Maintenance 44,373 22 53,128 29 1,006,211 511 897,487 483 * Adjusted for AGM Costs Page 7 of 27
South Wales Miners, Welfare Trust Fund Scheme Trustees, Annual Report for the year ended 31 December 2023 Financial Review Incoming resources in the period amounted to £897,889 (2022 - £598,554) with all identified income streams identified on page 19 of the financial statements. Total resources expended in the period amounted to £1,108,795 (2022 £1,015,917), and which are best considered under the same two headings of Coalfield Schemes of Benefit and Convalescence. Coalfield Schemes of Benefit Grant assistance provided to Miners, Welfare Schemes amounted to £26,500 (2022 - £28,395). Other Grants and Donations during the year totalled £29,782, enabling social, cultural and educational activities. Administration, Governance and Support costs amounted to £41,801 with the majority of these costs relating to Fund Manager's fees in administering fIve portfolios with a combined market valuation of £4.6 million at year end. Convalescence Total resources expended in the period amounted to £1,010,712 (2022 £907,797), representing the first year on record where costs topped £lm. The cost per w¢¢k therefore of operating the Convalescent Home during 2023 was £19,437, an increase of 11.3% in comparison to the Previous year (£17,458). Statement of Net Investment Gainsl Losses The Consolidated Charity recorded net investment gains of £255,234 which when combined with the operational deficit of £210,905, resulted in an overall up turn in asset value of £44,327, increasing the Trust Fund's asset value from £8,187,682 to £8,232,009. All investments are administered by Messrs Sarasin LLP through their Alpha Fund, which generated a total return for the year of 8.8 % against a benchmark of 11.7%. In terms of a rolling three year perfonnance, the Alpha Fund returned 19.40/0 against a benchmark return of 25.8 /0. The Trustees wtll assess their future direction at the latter part of 2024. Staternent of Investment Princi les The Funds, discretionary management agreement with Sarasin & Partners LLP provides for obtaining "reasonable long-terni overall return at modest risk within specific restrictions on investment" l. I Investment Princi les l ) The Trustees have appointed an investment manager, Sarasin & Partners LLP, to manage the assets of the Fiinds in accordance with the principles set out in this Statement and within the guidelines set down from time to time by the Trustees. 2) The Trustees will monitor the performance of the investment manager against stated Perforn]ance Objective. Perfonnance reports and valuations will be obtained quarterly. Attendance by the manager at client meetings is by client request. 3) The Trustees do not impose any restrictions whether in respect of ethical, social or environmental matters, or voting policy, or otherwise, with the exception of the points listed in the 'Current Investment Arrangements" below, believing that this course is in the best interests of the objectives of the Funds. Page 8 of 27
South Wales Miners, Welfare Trust Fund Scheme Trustees, Annual Report for the year ended 31 December 2023 1.2 Investment Ob'ectives 4) The primary objective of the Trustees is to ensure that the Funds are invested so as to provide as high an annual income as possible within the parameters of agreed asset allocation. Income targets may be set by the Trustees frotn time to time. The current income target of the Fund (after managements fees deducted at source from the 3 main funds) is £130,000. 5) All Funds are to be managed on a discretionary basis. 6) The object of the Funds is to support charitable causes. 7) The assets will be invested in diverse portfolios of investments, consistent with a medium risk profile. 8) A further objective (the Performance Objective) of the Trustees is for the manager to achieve, over rolling three-year periods, a total return on investments which is above average when compared to the specific benchmarks of the Fund. 1.3 Current Investment Arran ements 9) Sarasin & Partners LLP have been appointed the discretionary investment manager of the Fund. The Investments are held in the name of a nominee vehicle. 10) The investment in the Funds are restricted to the following ranges: 90% Alpha Common Investment Fund for Endowments & I 00/0 Alpha Common Investment Fund for Income and Reserves Reserves Polic The reserves of the Charity at 31 st December 2023 stood at £8,232,010. The Trustees regard demand for social welfare assistance to still be in the region of ten to fifteen years, and are therefore committed to a conscious draw down from reserves on a gradual basis with the intention of assisting mining beneficiaries during their remaining lifetime. Plans for Future Periods The Trustees are evaluating current spending policy and striving to reconcile longevity of demand. Statement of Trustees, Res onsibilities The Charities Act requires the Trustees to ensure that financial statements are prepared for each financial year which give a true and fair view of the state of affairs of the Charity and of the financial activities of the Charity for that period. In the preparation of those financial statements the Trustees are required to ensure that=_ R. Suitable accounting policies are selected and applied consistently- 2. Judgements and estimates are reasonable and prudent. 3. Preparation of the financial ststements is on the going concern basis unless it is inappropriate. The Trustees are responsible for keeping proper accounting records which disclose witli reasonable accuracy at any time the financial position of the Charity. 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. Page 9 of 27
South Wales Miners, Welfare Trust Fund Scbeme Trustees, Annual Report for the year ended 31 December 2023 The Trustees confirni that as far as they are aware, there is no relevant audit infomiation of which the Charity's auditors are unaware. They have taken all the steps that ought to have been taken in order to make themselves aware of any relevant audit information and to establish that the Charity's auditors are aware of that infonnation. Approved by the Trustees and signed on their behalf on 26 September 2024 by: Wayne Thomas (Trustee) Page 10 of 27
Independent auditors, report to the members of South Wales Miners, Welfare Trust Fund Scheme Unincoryon]ted Charity Opinion We have audited the financial statements of South Wales Miners, Welfare Trust Fund Scheme (the 'charity') for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK (United Kingdom Generally Accepted Accounting Practice). In our opinion, the finaTtcial statements: give a true and fair view of the state of the chariws affairs as at 31 December 2023 and of its incoming resources and application of resources for the year then ended- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice. and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordance with Intemational Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditorfs 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 qUireMents. 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 statetnents 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. Other information The other information comprises the inforn]ation included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other inforniation contained within the annual report. Our opinion on the financial statements does not cover the other inforniation and, except to the extent othenvise explicitly stated in our report, we do not express any forni of assurance conclusion thereon. Our responsibility IS to read the other infonnation and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to detennine whether this gives rise to a material misstatement in the financTal statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other infonnation, we are required to report that fact. We have nothing to report in this regard. Page I l of 27
Independent auditors, report to the members of South Wales Miners, Welfare Trust Fund Seheme Unincorporated Charity Matters on whieh Ive are required to report by exception We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require 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 sufficient 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 inforn]ation and explanations we require for our audit. Responsibilities of trustees As explained more fully in the trustees, responsibilities statement (set out on pages l O-I l ) 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 deterniine 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 Tesponsible 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 operdtions, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the flnancial statements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financtal statements as a whole are free froffl material misstatement, whether due to fraud or eOr, and to issue an auditofs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities is located on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description fornis part of our auditor's report. Use of our report This report is made solely to the charity's trustees, as 8 body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the cliarity's trustees those matters we are required to state to thcm in an auditorfs report and for no other purpose. To the fullest extent pernlitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. R. H. Jeffs Chartered Accountants and Statutory Auditor 27ll8 Gelliwastad Road Pontypridd CF37 2BW owe 26 September 2024 R. H. Jeffs & Rowe is eltgible for appotntment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. Page 12 of 27
South Wales Miners, Welfare Trnst Fund Scheme Statement of Financial Activities for the year ended 31 December 2023 Notes Unrestricted & Endowment Restrieted Total Total 2023 2022 Income & Endowments Donations.. Grants & Donations Investment Income Convalescence Scheme Income Employees Contributions li 212,845 122,151 516,459 212,845 168,503 516,459 82 46,352 167,260 430,857 437 82 Total Income & Endowments 46,434 851,455 897,889 598,554 Expenditure Costs ofraisingfunds." Investment management costs Expenditure on charitable activities.. Charitable activities 8,879 23,217 32,096 33,562 48,042 1,028,657 1,076,699 982,355 Total Expenditure 56,921 1,051,874 1,108,795 1,015,917 Net incon)el(expenditure) (10,487) (200,419) (210,906) (417,363) Net gains/(losses) on investments 71,698 183,536 255,234 (674,058) Net movement in funds before transfers 61,211 (16,883) 44,328 (1,091,421) Transfers between funds 71,211 (71,211) Fund Balances brought forward 1,210,822 6,976,859 8,187,681 9,279,102 Fund Balances carried fonvard 1,343,244 6,888,765 8,232,009 8,187,681 The Statement of Financial Activities includes all gains and losses in the year. All Income & endowments and Expenditure derive from continuing activities. Page 13 of 27
South Wales Miners, Welfare Trnst Fund Scheme Charity Number: 507439 Balance sheet as at 31 December 2023 2023 2022 Notes Fixed Assets Tangible assets Investments 1,255,862 6,849,976 1,293,857 6,837,052 8,105,838 8,130,909 Current Assets Stocks Debtors Short-tenn Investment Deposits Cash at bank and in hand 1,412 146,463 1,961 56,239 97 72,822 2,028 52,065 206,075 127,012 Creditors: amounts falling due within one year 10 (79,904) (70,240) Net Current assets 126,171 56,772 Total Assets Less Current Liabilities 8,232,009 8,187,681 Funds Unrestricted Funds Pennanent Endowment Funds Restricted Funds 13 13 13 1,286,847 56,397 6,888,765 1,154,425 56,397 6,976,859 8,232,009 8,187,681 The notes on pages 16 - 27 forni part of these accounts. The financial statements were approved by the Trustee Board on 26 September 2024 and signed on its behalf by Wayne Thomas (Trustee) Page 14 of 27
South Wales Miners, Welfare Trust Fund Scheme Cash flow statement for the year ended 31 December 2023 2023 2022 Notes Reconciliation of operating loss to net cash outflow from operating activities Net Movement in funds Depreciation (Increase) in stocks (Increase)IDecrease in Investments (Increase)/Decrease in debtors Increasel(Decrease) in creditors 44,328 37,995 (1,315) (12,924) (73,641) 9,664 (1,091,421) 37,995 {1,077,412) 2,187,930 (243,813) 10 Net cash outflow from operating activities 4,107 (186,717) Increasel(Decrease) in cash in the year 4,107 (186,717) Cash & Cash equivalents at start of the year 54,093 240,810 Cash & Cash equivalents at end of the year 58,200 54,093 Page 15 of 27
South Wales Miners, Welfare Trust Fund Scheme Notes to the Financial Statements for the year ended 31 December 2023 Accounting Policies 1.1. (a) Basis of preparation 2nd assessment of going concern The accounts (fInancial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless Othenvise stated in the relevant note(s) to these accounts. The financial statelnents have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom (FRS 102) issued October 2019 and the Charities Act 2011. The Trust constitutes a public benefit entity as defined by FRS 102. The Trustees consider that there are no material uncertainties about the Trust's ability to continue as a going concern. With respect to the next reporting period, the most significant areas of uncertainty that affect the carrying value of assets held by the Trust are the level of investment return and the performance of investment markets (see the inveslment policy and perforniance and risk management sectlons of the Trustees, annual report for mor¢ infomiation). (b) Funds structure The Charity has a single pem]anent endowment Restricted funds are funds which are to be used in accordance with specific restrTctions imposed by the donor or trust deed. Unrestricted income funds comprise those funds which the Trustees are free to use for any purpose in furtherance of the charitable objects. Unrestricted fijnds include designated funds where the Trustees, at their discretion, have created a fund for a specific purpose. Furtlier details of each fund are disclosed in note 13. {c) Income recognition All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably Donations, are recognised when the Trust has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of perfomiance before the Charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the Charity and it is probable that those conditions will be fulfilled in the reporting period. Legacy gifts are recognised on a case by case basis following the granting of probate when the administratorlexecutor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the fomi of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift beillg reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the Charity. Ittterest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is nonnally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is nonnally upon notification by our Tnvestment advisor of the dividend yield of the irfftvestment portfolio. Page 16 of 27
South Wales Miners, Welfare Trust Fund Scheme INotes to the Financi21 Statements for the year ended 31 December 2023 (d) Expenditure recognition Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings. For mo information on this attribution refer to note (g) below. Grants payable are payments made to third parties in the furtherance of the charitable objects of the Trust. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the one-year or multi-year grant. Grants awards that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled condition attaching to that grant is outside of the control of the Trust. Provisions for grants are made when th¢ intention to make a grant has been communicated to the recipient but there is uncertainty as to the timing of the grant or the amount of grant payable. The provision for a multi-year grant is recognised at its present value where settlement is due over more than one year from the date of the award, there are no unfulfilled performance conditions under the control of the Trust that would pemiit the Trust to avoid making the future payment(s), settlement is probable and the effect of discounting is material. The discount rate used is the average rate of investment yield in the year in which the grant award is made. This discount rate is regarded by the Trustees as Providing the most current available estimate of the opportunity ¢OSt of money reflecting the time value of money to the Trust. (e) Allocation of support and governanee costs Support costs have been allocated between governance costs and other support costs. Governance costs comprise all costs involving the public accountability of the Charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees together with an apportionment of overhead and support costs. Governance Costs and support costs relating to charitable activities have been apportioned based on the number of individual grant awards made in recognition that the administrative costs of awarding, monitoring and assessing research grants, salary support grants and postgraduate scholarships are broadly equivalent. The allocation of support and governance costs is analysed in note 6. (fj Costs of raising funds The costs of generating funds consist of investment management costs. (g) Charitable activities Costs of charitable activities include grants made, governance costs and an apportionment of support costs as shown in note 4. (h) Tangible fixed assets and depreciation Depreciation is provided on a reducing balance basis to WTjte off the cost of fixed assets over theiT useful economic l ife at the following rates:_ Land - 0% per annum Building & Improvements - 2 % straight line basis Equipment, Fumiture & Fittings - Charged to Revenue as InCued on a renewals ba51S. Page 17 of 27
South Wales Miners, Welfare Trust Fund Seheme Notes to the Financial Statements for the year ended 31 December 2023 Impairment A review for indicators of impairnient TS carried out at each reporting date. with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairnients are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset. an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset 2nd generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. (i) Fixed asset investments Investments are a fom of basic fmancial instrun]ent and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of fanCIal activities includes the net gains and losses arising on revaluation and disposals throughout the year. The Trust does not acquire put options, derivatives or other complex financial instruments. The main form of financial risk faced by the Charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors (i) Realised gains and losses All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the fIrst day of the financial year. Unrealised gains and losses arc calculated as the difference between the fair value at the year end and their carying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities. (k) Pensions The Convalescent Home for the South Wales Mining Industry operates one Defined Contributions pension scheme administered by Friends Provident. Contributions to the scheme are charged to the SOFA in respect of the period to which the contributions relate. (I) Contingent liabilities A contingent liability is identified and disclosed for those grants resulting from: a possible obligation which will only be confirmed by the ocCUenCe of one or more uncertain future events not wholly within the Trust¢¢s' control. or a present obligation following a grant offer where settleTnent is either not considered probable. or the amount has not been communicated in the grant offer and that amount cannot be estimated reliably. {m) Stoek Stock consists of purchased goods for future consumption. Stock is valued at the lower of cost and net realisable value. (n) Income tax refunds 90 /0 of Income Tax refunded from covenanted contributions are passed over to the Convalescent Home for the South Wales Mining Industry. Such liabilities are included in the financial statements on the assumption that the refunds will continue to be paid over. Page 18 of 27
South Wales Miners, Welfare Trust Fund Scheme Notes to the Financial Statements for the year ended 31 December 2023 (o) Restricted Funds The Trustees of four mining related Trusts, these being Hafod Miners, Welfare Womens Convalescent Home and Girls Camp, David Davies Memorial Trusts, South Wales & Monmouthshire Convalescent Home Endowment Fund Scheme and Convalescent Home for the South Wales Mining Industry, resolved on 4 November 2013 to transfer their residual assets as at 31 December 2013 to the Area Trust Fund on their respective subsisting Trusts. The motivation for transfer was to generate synergistic benefits in the administration of an amalgamated Charity where the governance rested in the same group of individual Trustees. The four mining related Trusts have since been removed from the Register of Charities on the basis that the funds have been tranSf¢ed. Page 19 of 27
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South Wales Miners, Welfare Trust Fund Scheme Notes to the Financial Statements for the year ended 31 December 2023 Details of Expenses Included within Governance and Support Costs 2023 2022 Audit Fees Trustees Expenses Claims AGM Costs 3,600 975 4,500 3,500 1,642 4,172 Staff Costs 2023 2022 Staff costs during the year comprised of the following: Staff salaries (Including Social Security Costs) Pension costs 407,571 20,488 359,338 7,633 428,059 366,971 The average number of employees during the year, calculated on the basis of full time equivalents, was as follows: 2023 2022 number number Managerial and Administration Ancillary 14 The average number of employees during the year amounted to: 17 16 There werc no employees earning more than £60,000 per annum (2022 - none). The DirectOrsrUsteeS did not receive any remuneration or benefits in connection with the performance of their duties, except expenses totalling £975 (2022 - £1,642). Taxation As a Charity, South Wales Miners, Welfare and Trust Fund Scheme is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or s256 of tlie Taxation of the Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the Charity. Page 22 of 27
South Wales Miners, Welfare Trust Fund Scheme Notes to the Financial Statements for the year ended 31 December 2023 Tangible fixed assets Land and buildings freehold Cost At l January 2023 At 31 December 2023 1,899,764 Depreci2]tion At l January 2023 Charge for the year 605,907 37,995 At 31 December 2023 643,902 Net book values At 31 December 2023 1,255,862 At 31 December 2022 1,293,857 The freehold property, known as Court Royal Convalescent Home, was last revalued during 2015 by Messrs Goadsby, Nvho valued the property at £990,000 on a current use basis. This is felt to be well below the true value of the property if it was to be sold and, in accordance with FRS102, the previous valuation continues to be used. The Building was initially valued in 1993 when the estitnated market value of the Property was £600,000 at which time the Net Book Value was £4,602. As a result of subsequent revaluations the Revaluation Surplus as at l January 2009, before depreciation, was the difference of £1,445,398. The original pemanent endowment was in the forni of a grant of £20,000 in 1923, which was allocated by the Central Committee of the Miners, Welfare Fund which had been established under Section 20 of the Mining Industry Act 1920. These funds were used to acquire the Talygarn Mansion House, the original Convalescent HoTne. Subsequent events resulted in the disposal of Talygarn, and the purchase of Court Royal. Due to the amalgamation of all South Wales mining related charitable funds, the Trustees agreed, by Deed, that as at 31 December 2013, all property of the Charity, ie the Court Royal Convalescent Home, be transferred to speclal trusts for future administration and Tnanagement by the trustees of the South Wales Miners, Welfare Trust Fund, whilst the Trustees remain one and the same. The property registered at Land Registry under title number DT372460, and vested in the Official Custodian for Charities shall now be managed by the Trustees in their capacity as trustees of the South Wales Miners, Welfare Trust Fund, representing a transfer falling within section I17(3)(c)(ii) of the Charities Act 2011. Page 23 of 27
South Wales Miners, Welfare Trust Fund Scheme Notes to the Financial Statements for the year ended 31 December 2023 Debtors 2023 2022 The Atlantic (South Beach) Tenby Limited The Court Royal Convalescent Home Limited Loan to Abertillery Miners, Institute Prepayments Other Debtors 95,005 14,621 27,200 9,255 382 40,049 27,200 5,573 146,463 72,822 io. Creditors: amounts falling due Ivithin one year 2023 2022 Bank Overdraft Other Creditors Accruals 5,522 70,882 3,500 66,740 3,500 79,904 70,240 ii. Related party transactions The Court Royal Convalescent Home Limited, company number 03533202, is supported by the Charity. The company and Charity share Trustees with the Charity iwhich owns the building from which the company operates. A deed of covenant is in place whereby the company has agreed to make a donation to the Charity of all its taxable profits. The Charity purchased the Atlantic Hotel, Tenby in March 2022 whÉch is structured as The Atlantic (Soutli Beach) Tenby Limited, company number 13737497, with Trustees Christopher Earland and Wayne Thomas being the two Directors of this company. Investment in the company is detailed in note 8 and 9 to the accounts. A deed of covenant is in place whereby the company has agreed to make a donation to the Charity of all its taxable profits. During 2023 the Charity received covenanted donations from The Court Royal Convalescent Home Limited of £17,840 and from The Atlantic (South Beach) Tenby Limited of £195,005, a total of £212,845. 12. Analysis of Net Assets between Funds Total Funds Unrestricted Restricted Fixed Assets Net Current Assets/(Liabilities) 3,780,744 (2,437,500) 4,325,094 2,563,671 8,105,838 126,171 Net assets at 31 December 2023 1,343,244 6,888,765 8,232,009 Page 25 of 27
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