THE ULSTER DEFENCE REGIMENT BENEVOLENT FUND REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2023 The Board of Trustees present their report and financial statements of Ihe Fund for the year cndcd 31 March 2023. si The flnancial statements have been prepared in accordance with the accounting policies sei out in notes to the financial statemenls and comply with the Fund's governing document, the Charities Act (Norihern Ireland) 28, the Charities Act (Northern Ireland) 2013, the Ch11t1eS (Accounts and Reports) Regulalions (Northern Ireland) 2015, Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance wilh the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and UK Generally Accepied Accounting Practice. CONSTITUTION The Ulster Defence Regiment Benevolent Fund was founded in 1972 under Charilable Trust, most recently revised in 2017, its purpose being helping and &%siSting the financial necds and affording support to the benefit of members of and former members of the Ulster Defence Regiment and their dependanis a.s set out in the Trust Deed. The Fund is recognised for charit(Ible purposes by HM Ih Revenue & Customs and registered with The Churiiy Commission for Northern Ireland on I l July 2018. Further information on the Fund and the members of the Board of Trustees can be obtciined from the Secretury at the registered office addres%: CHARITY ADMINISTRATIVE AND REFERENCE DETAILS Charity narne Charlty registration nurnber HMRC reference The Ulster Defence Regiment Benevolent Fund NIC107024 XN48435 Registered oifice Trustees Ander.8on Hou.se, Palace Barrdcks, Holywood, BTI 8 9QA The chariiy commission has <iccepted a request from the trustees for their pcrsonal detiiils to be withheld. There were 14 trusiees, who served during the year. Mr B Kennedy (delegated dily to day management of ihe Fund) Julius Baer International Limited, I St Martins, Le Grand, London, ECIA 4AS Secretary Investment managers Quilter Cheviot Limited, Montgomery House, 29133 Montgomery Street, Belfast, BTI 4NX GMCG Belfast, Alfred House,19 Alfred Street,Belfasi.BT2 8EQ Danske Bank, Donegall Square West, Belfast, BT16JS Edwards & Company, 28 Hill Street, Belfast. BTI 2LA Auditor Bankers Solicitors Page I
THE ULSTER DEFENCE REGIMENT BENEVOLENT FUND REPORT OF THE BOARD OF TRUSTEES (continued) FOR THE YEAR ENDED 31ST MARCH 2023 STRUCTURE, GOVERNANCE AND MANAGEMENT Organisatlonal structure and related parties Responsibility for the activities of the Fund is vested in and carried out by a Board of Trustees which meeis at intervals throughout the year. The Board of Trustees consists of elected members. Truslees are appointed or are eligible for re- appointment immediately following ihe completion of their term of office at a General Meeting of the Fund for a term of four years. The number of trustees shall consist of not more than fifteen. The Chairman of (he Board of Trustees is appointed annually at a General Meeting of the Fund. Recruitment, appointment, induction and training The Board of TrLlStees have been involved in the Fund for a number of years and so are familiar with its work. The trustees regularly review ihe requirements of the Fund and ihe possibility of a need for additional trusiees. Any new trustees would be elected by the Board of Trustees. Appropriate training and induction 1% avail(Ible io all trustees. INVESTMENT POWERS AND POLICY Under the trust deed, Ihe trustees h(Ive unrestricted investment powers, and may invest at their ab.solute discretion. The trustees have appointed iwo independeni investment managers, who have discretionary power%, with a mandale which 1% reviewed on a quarterly basi.s, to niaintain and grow income, with a moderale risk profile. OBJECTIVES AND ACTIVITES The Ulster Defence Regiment Benevolent Fund exists to provide as5i5tance io those former member.s of The Ulster Defence Regiment and the exlended Ulster Defence Regimeni family who are in need of support a.s a consequence of poverty caused by sickness, disability, accident, infirmity, social exclusion or other adversity through the provision of grants and respite support. PUBLIC BENEFIT STATEMENT The trustees of The Ulster Defence Regiment Benevolent Fund confirm ih¢lt they have had due reg(Ird for the guidance on Public Benefii by the Charity Commission for Northern Ireland and are pleased to report that during the year the charity has continued to provide Public Benefits. PUBLIC BENEFIT The trustees believe that the Fund provides the following public benefils in supporting those former members of the Ulster Defence Regitnent and their dependants who are in need: l. The lief of poverty or assistinLT those in need by reason of age, ill health, disability, financial hardship or other disadvantage. Page 2
THE UISTER DEFENCE REGIMENT BENEVOLENT FUND REPORT OF THE BOARD OF TRUSTEES (continued) FOR THE YEAR ENDED 31ST MARCH 2023 PUBLIC BENEFIT (continued) The Ulster Defence Regiment Bcnevolent Fund meets this purpose through the provision of grants or other assistance, both financial and through the piovision of goods and respite support. The provision of this assistance has enabled the Fund to help lift its beneficiaries out of a potential poverty trap by alleviating some of the financial difficulties that they face, for example where statutory benefits do not cover what is required, where a beneficiary has special needs or a neurological, psychological or physical di.gability or where a beneficiary is facing homelessness or poveriy as a result of a debt. 2. The advancement of human rights, conflict resolution or reconciliation. The Ulster Defence Regiment Benevolent Fund provides SUPPOrt to its beneficiaries in relieving social exclusion (due to poverty, financial or oihei'wise, by being a member of the Regiment oi. a widow, widower, depend¢int or family member of such member) by providing them with the opportunity to meet with other victims ¢ind survivors of the 'Troubles' in Northern Ireland ¢ind of other conflicts. The direci benefits which flow from this purpose include un opportunity for Victims (Ind %urvivors (o avoid ihe poverly trap caused by Socidl exclusion and all other h<ird%hips (financial or othei'wise) that flow from .such social exclusion, to reflect upon (ind share their expcriences and to begin to come io terms with their involvement in such conflicts and the .8ocial, political and tin(Incial consequences rel(Iting Ihereto. In turn, this promotes healing and reconciliation among the benefici(Iries and society as d whole. The 'poverty exception, applies in this c(Ise; Ihe Fund seeks to relieve poverty in a number of circumstances and ihis is regarded a5 being for the public benefit even where there is a siricted or smaller poiential group of beneficiarie5. There is no harm arising from any of the purposes. The charity's beneficiaries are those former members of the ul.ster Defence Regiment or members or former members of the Royiil Irish Re8iment who are serving or have served on a similar limited commitment of service as the members of the Ulsler Defence Regiment ("Home Service Condilion5 of Service") and their widows. widowers, dependants and familie8 who are in need. There may be a private benefit flowing from the purposes, which is incidental and necessary in the circumstances, where a trustee may have been a serving member of the Regiment in hislher pasl who may find himtherself in necessiiOUS circumstances because of social or financial reasons. The trustees are fully aware of the guidelines coming from The Charity Commission for Northern Ireland. They believe they are operaiing entirely within those guidelines which have been released 50 far and look forward with confidence to the developmeni of ihe Fund's work in the future. Page 3
THE ULSTER DEFENCE REGIMENT BENEVOLENT FUND REPORT OF THE BOARD OF TRUSTEES (continued) FOR THE YEAR ENDED 31ST MARCH 2023 PUBLIC BENEFIT (continued) The Ulster Dcfcnce Regiment Benevolent Fund meets this purpose through the provision of grants or other assistance, both financial and through the provision of goods and respite support. The provision of this assistance has enabled the Fund to help lift its bencficiaries out of a potential poverty trap by alleviating some of the financial difficulties that they face, for example where siatuiory benefiis do not cover what is required, where a beneficiary has special needs or a neurological, psychological or physical disability or where a beneficiary is facing homelessness or poverty as a result of a debt. 3. The advancement of human rights, conflici resolution or reconciliation. The Ulster Defence Regiment Benevolent Fund provides support to its beneficiarie% in relieving social exclusion (due to poverty, financial or otherwise, by being il member of the Regiment or a widow, widower, dependani or family member of such member) by providing them with ihe opportunity to meet with oiher Viciims and survivors of the 'Troubles' in Northern Ireland and of other conflicts. The direct benefits which flow from this purpose include an opportunity for Victims and survivors to avoid the poverty trap caused by social exclusion and all other hardships (financidl or otherwise) Ihtlt flow from such SOCi<il exclu.sion, to reflect upon lind share their experiences and io begin to come (o terms with their involvement in such conflicts dnd the social, poliiic<il and financial con.sequence5 relating thereto. In turn, Ihis promotes healing and reconcili%ition among the beneficiaries (ind socieiy as <1 whole. The 'poverty exception, ¢ipplics in this case; the Fund seeks to relieve poverty in ¢1 number of circumstances and this is recrarded Js being for the public benefit even where there is (I restricted or smaller potential group of beneficiaries. There i.s no harm <irising from any of the purposes. The charily's beneficiaries Lire those former members of the Ulster Defence Regiment or members or former members of the Royal Irish Regiment who are serving or have served on a similai. limited commitment of service as the members of the Ulster Defence Rcgimeni ("Home Service Condiiions ot Service") and their widows. widower%, dependants and families who are in need. There may be a private benefit flowing from the purposes, which is incidental and necessary in the circumstance5. whcrc a trustee may have been a serving member of the Regiment in hislher past who may find himlherself in necessitous circumstances because of social or financial reasons. The irusiees are fully aware of the guidelines coming from The Charity Commission for Northern Ireland. They believe they are operating entirely within those guidelines which have been released so far and look forwurd with confidence to the development of the Fund's work in the future. ACHIEVEMENTS AND PERFORMANCE During the year the Fund undertook numerous welfare activitie5 givin(T financial help to assist the needs and afford support to the benefit of former members of the ul.ster Defence Regiment and their dependants. The Fund also sponsored numerous respite activities for fdmily groups comprisino of widows, bereaved parents, disabled ex-soldiers and dependants of fornier members of the Regiment. During the year, 114 (2022 - 114) applications for benevolence were dealt with, 534 (2022 519) families benefited from respite in the apartments and 233 (2022 221) family 01 disabled ex-soldiers groups <ivailed of respite activities durinu the year. Page 4
THE ULSTER DEFENCE REGIMENT BENEVOLENT FUND REPORT OF THE BOARD OF TRUSTEES (continued) FOR THE YEAR ENDED 31ST MARCH 2023 ACHIEVEMENTS AND PERFORMANCE (contiiiued) The Fund also extended the Pilot Health Care Scheme for a further year with 604 beneficiaries now benefiting from the scheme. The overall IncaSe in beneficiary contact during the year was 41 %. Total income for the period amounted to £309,148 <2022 £268,767) and total expenditure for the period amounted 10 £514,625 (2022 £456.644). Investments were held by Julius Baer and Quilter Cheviot as discreiionary investment managers and ihere was a loss on investments of £646,575 (2022 gain of £405,885) in the year. The trustees continually review ihe level of welfare grants given and respite activities for family groups Comprising of widows, bereaved parents, disabled ex-soldiers and dependants of former members of the Ulster Defence Regimeni in reldtion to projected investment income and donation.s together wilh any surplus funds. Direct charitable expenditure increased in the year by £60,308 from £396,413 to £456,721. The tru.stces do not anticipate any significlint increiLse in the level of grants given in the incoming year, The trLlStees consider that the Fund in a sati%factory position to Sustain lis charitable activiiie4i for the foreseeable future. RISK MANAGEMENT The trugtees have 2Lssessed ihe major risks to which the Fund is exposed, in particular those related to Ihe operations <ind finances of the Fund, lind 4ire satisfied that syslem.s are in place to mitigaie an exposure io major risks. In partiLul¢ir, the irustees instruct external accountants to review the accounting records and prepare interim maniioement accounts during the cour%e of the financi*il year. The trustees, attitude to investment risk is manliged through Ihe two professional investment managers. Where approprL¢ite; systctns or procedures have been established to mitigate the risk.s faced by the Fund. Internal control risks tire minimised by the impletnentation of procedures for authorisaiion of all transactions and projects. Procedures are in place to ensure compliance with health and safety of officers, volunteers and applicants. These procedures are periodically reviewed at least annually to ensure that they continue to meet the needs of the Fund. FINANCIAL REVIEW Details of income and cxpenditure for the year and of the year end financial position are given on pages 13 and 14 of the accounts attached to this report. There w¢ a decrease in the market value of Ihe Fund's investment portfolio during the year and reserves decreased by £852,052 in 2022123 from £ I1,200,468 to £10,348,416. The truslees consider the financial position of the Fund as satisfactory in order to sustain its charitable activities for the foreseeable future. FUNDING The principal funding is from donations and investments. Page 5
THE ULSTER DEFENCE REGIMENT BENEVOLENT FUND REPORT OF THE BOARD OF TRUSTEES (continued) FOR THE YEAR ENDED 31ST MARCH 2023 FINANCIAL REVIEW {coiitinu£d) RESERVES POLICY Cash and deposit balances are maintained so as to be able to meet expenditure on charitable activities and other outgoings as they arise. However. the majority of the Charity's assets are held in investment funds and in fixed assets used to help fulfil its charitable objective5. The Charity's income is mainly derived from investment income and the Trustees are aware of the need to minimise the risk that the Charity cannot meet its obligations by maintaining the value of the charity's underlying investments. The Charity's obligalions cannot be readily ascertained but the Trustees adopt a reserves policy which allows free reserves to be available in any financial year in line with an annual budget sei in advance of the year. The total unrestricted funds of ihe charity are £10,348,416 (2022: £11,200,468) which include5 fixed assets of £9,836.237 (2022: £10,360,154) leaving the charity with free reserves of £512,179 (2022: £840,314). PLANS FOR FUTURE PERIODS There have been no major chdnges in the year, nor ¢ire any envisaged in the fore.seeable future. STATEMENT OF THE RESPONSIBILITIES OF THE BOARD OF TRUSTEES The trustees are re.%ponsible for preparing rhe Trustees, Annual Reporl and (he fin<incial statements in accorddnce with applic(Ible law and Uniied Kingdom Accounting Stiind<ird% (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in Northern Ireland requires the irustees to prepare financial statements for e(ich financial year which give a true and fair view of the slate of iiffairs of the ch(iriiy 4ind of the incoming resources and applicaiion of resources of ihe charity for th411 period. In preparing these financial statements, the trustees are required to: .4eleci suiiable accounting policies and then apply them consistently; observe the methods and piinciples in the Charities SORP 2019; make judgement.s and estimates that are reasonable and prudent; stale whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements" and prepare the financial statements on ihe going concern basis unless li is inappropriate to presume that the charity will continue in operation. The truslees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the chariiy and enable them to ensure ihat the financial statements comply with the Charities Act (Northern Ireland) 2008, the Charities (Accounts and Reports) Regulations (Northern Ireland) 2015 and the provisions of the trust deed. They are also responsible for safeguarding assets of the charity and hence for taking Kasonable steps for the prevenlion and detection of fraud and other irregularities. Page 6
THE UISTER DEFENCE REGIMENT BENEVOLENT FUND REPORT OF THE BOARD OF TRUSTEES (continued) FOR THE YEAR ENDED 31ST MARCH 2023 STATEMENT OF THE RESPONSIBILITIES OF THE BOARD OF TRUSTEES (conlin4ed) The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charily's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. AUDITOR GMCG Belfast offer themselves for re-appoiniment as auditor for the ensuing year. Signed on behiilf of the trustees Chairman Date: 31" October 2023 Page 7