## **Royal Aeronautical Society** **Trustees’ Annual Report and Accounts Year Ended 31 December 2021** **Charity Registration Number: 313708 Incorporating: Charity Registration Number: 1013530 Charity Registration Number: 1045004** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** ## **Report of the Board of Trustees for the year ended 31 December 2021** The members of the Board of Trustees are pleased to present their annual report and financial statements of the Society for the year ended 31 December 2021. The Trustees confirm that they have complied with the Charities Act 2011 to have due regard to public benefit guidance published by the Charities Commission in determining the activities undertaken by the Society. The financial statements have been prepared in accordance with the accounting polices set out in note 1 to the accounts and comply with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (second edition effective 1 January 2019) - (Charities SORP (FRS 102)). ## **Objectives and Activities** Founded in the United Kingdom in 1866, it is the world’s oldest and most respected aeronautical society. The principal objectives of the Society as set out in its Charter of Incorporation granted by letter patent of His Majesty The King George VI in 1949 are “the general advancement of Aeronautical Art, Science and Engineering and more particularly promoting that species of knowledge which distinguishes the profession of Aeronautics.” The Society strives to maintain the highest standards of professionalism in all aerospace disciplines and, as such, the qualifications endowed by the Society are internationally recognised as a professional hallmark. As a learned body, it runs an extensive conference and lecture programme which is available to the public. The Society’s comprehensive aviation library is now housed in a modern library at Farnborough and is open to the public; the Society’s headquarters, No.4 Hamilton Place, in London is a base for meetings and conferences. Membership is open to those within the aerospace community and other interested individuals and companies. The Society operates throughout the whole of the UK, and overseas; its benefits are not confined to any section of the public and the wider benefits of the Society’s activities are intended to include society as a whole. The Vision for the Society is to be recognised as the leading professional community and independent source of knowledge in aerospace, aviation, and space through: - Providing influence and leadership to the aerospace, aviation and space domains, disseminating impartial and authoritative knowledge and information to a broad audience. - Attracting and supporting a diverse and active membership base, both nationally and internationally, via a wide range of activities across the entire aerospace, aviation and space community. - Maintaining and facilitating professional standards across a wide range of competence and academic activities. - Acting in accordance with and maintain its charitable status. The Society’s Strategy is developed and owned by the Society's Board of Trustees. The Trustees, in analysing and reviewing the Society’s activity over the previous decade and the lessons learned from these activities and looking forward with the need to address the expectations and wishes of the Society’s stakeholders, identified a range of aims that need to be achieved for the Society to be where it wanted to be in 2021 and beyond: - Promote the Society’s role as the source of authoritative impartial, evidence-based aerospace, aviation and space knowledge and policy advice; - Maintain, enhance and disseminate the Society’s body of knowledge in all aerospace, aviation, and space domains; - Extend and support the Society’s membership base nationally and internationally, ensuring inclusivity, diversity and active engagement; - Encourage the younger generation to enter the aerospace, aviation and space professions; - Enhance the Society’s global outreach through its existing Divisions; its existing and new Branches as well as through the Corporate Partners; - Implement all Society activities in an efficient, professional and sustainable manner, maintaining the financial stability of the Society. To achieve these aims, the Society needs to engage on a global basis with other institutions, trade associations, government departments, industry, and academia to promote the benefits of membership and **Page 1 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** demonstrate the added value that a professional institution can bring to individuals and organisations involved in the whole panoply of aerospace activities. The Society needs to keep up to date with trends and new initiatives, ensuring that the range of services and activities it undertakes fulfils the requirements of its stakeholders from individual members, Corporate Partners and, in addition, to meeting its obligations as a charity to the wider public. The Trustees regularly monitor progress against the strategic priorities and each year review the strategy, making amendments, if appropriate. ## **Achievements and performance** 2021 was a year of challenge and change for the Society. As the Society entered the year and had experienced nine months of pandemic, affecting the RAeS members, Corporate Partners, volunteers as well as the Society’s staff. Despite this, the cross-section of loyal support for the Society has remained constant, helping rebuild the financial reserves after the challenges of 2020. The Society had adapted quickly to the challenge with significant investment in digitalisation of its work, moving conferences, events, meetings and lectures into the virtual world, allowing the outreach work to continue, the members to engage with one another, to learn the very latest developments in the sector, and to be awarded engineering certification and apprenticeships. For No.4 Hamilton Place, the Society’s headquarters in London, it was another year of silence. Closed to everyone for the majority of the year, particularly the staff, some glimmers of light began to emerge towards the last quarter of the year with conferences, events and commercial hire again slowly returning, before another pandemic-induced closure in December for the remainder of the year. The Society continued to promote and share knowledge through virtual delivery of its centrally-organised 15 conferences and 18 public lectures and webinars, in addition to the 200+ virtual events hosted through the international network of Branches. While the Society adapted to a digital world as a solution to the pandemic’s challenges, the same could not be said for all of the industries the Society represents. The commercial airline industry continued to see low passenger numbers, with border restrictions remaining in place throughout the year, challenging both the business travel market as well as the ability for families and friends to meet; the rollout of the Covid-19 vaccination programme around the world had begun to have a positive impact on the transmissions and seriousness of the disease though it remained prevalent and with new variants emerging. While the travel recovery may come more quickly than the 2026 predictions of last year, it remains a situation in flux. There was though a significant growth in interest for next generation technologies of the future, particularly inspired by the COP26 conference held in Glasgow. For the UK economy, the true impact of Brexit has perhaps yet to emerge, with challenges of the pandemic so noticeable. Of particular pride was the Society’s work towards supporting the sector employees with careers and retraining advice. Throughout the year the Society held a series of events giving practical advice to people whose jobs had been hit by the pandemic, offering one-to-one advice sessions as well as continuing the virtual and, in the latter part of the year, in-person events at universities, colleges, careers fairs and in the Careers in Aviation and Aerospace Live event, connecting with over 1,200 people through this work. Likewise, the flexibility of our Cool Aeronautics programme allowed the Society to move into a virtual delivery model, meaning that as schools closed, the Society were able to adapt to provide at-home learning for children in the target age bracket, supported by the RAeS Corporate Partners across the country. The Amy Aviation YouTube videos, aimed at primary school children, also played an important part in the Society’s outreach work, attracting over 300,000 views. The Diversity and Inclusion work also continued, making aviation and aerospace, and the Society more generally, accessible to more people from a wide range of backgrounds. The Society’s publications continued to grow its readership, also recognised through further success for _AEROSPACE_ magazine’s Editor-in-Chief, Tim Robinson, winning Best Commercial Aviation submission at the Aerospace Media Awards. The Impact Factor for _The Aeronautical Journal_ rose by 23% together with a 50% increase in article downloads. The _Journal of Aeronautical History_ celebrated its tenth anniversary under new Editor Dr Robert S Hopkins III. **Page 2 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** The External Affairs team, working in conjunction with the Specialist Groups, continued to provide independent, authoritative and evidence-based advice to policymakers with evidence submitted to eight UK government or parliamentary consultations. The Farnborough-based National Aerospace Library continued to provide support to members, researchers and enthusiasts during lockdown through its expanded collection of e-books and e-journals, also adding the AIAA’s back catalogue. It also was rewarding to see Mike Stanberry FRAeS and former Chief Librarian Brian Riddle recognised with lifetime achievement awards from Aviation Heritage UK. Despite all the challenges, the digitalisation of the Society, together with strong financial management, has delivered a stable year which provides strong building blocks for the future recovery of our sector and the Society’s work. While revenue on venue hire was significantly down on expectations because of the pandemic’s continued impact, the Society continued to deliver on other income streams resulting in a surplus for the year. Finally, the hard work and efforts of the Society’s members, branches, boards, committees and staff members, working remotely for the majority of the year, cannot go unrecorded. Their consistent dedication, in spite of wide-ranging challenges both professionally and personally brought on by the pandemic, has allowed the Society to continue to deliver on our charitable aims, promoting aviation and aerospace, particularly to the next generation of our sector. In September 2021, Sir Brian Burridge FRAeS stepped down as Chief Executive of the Society after three years in the role. David Edwards FRAeS was appointed to replace him. ## **Achievements** ## _**Education, Skills and Diversity**_ The Society’s Education, Skills and Diversity team (ESD) work broadly fits around the following objectives: - To encourage those with an early interest in aerospace and aviation - To spread the word about what being involved in the industry can offer - To support and retain talent within the industry - To provide high quality end point assessments and support for apprentices within the industry The ESD team is steered by the following Boards and Committees of the Society, for which it provides management and secretariat support: - Education and Skills Committee - Diversity and Inclusion Committee - Women in Aerospace & Aviation Committee 2021 began with the team focusing on the digital success from 2020, accelerated by the Covid-19 pandemic. Including a revamped Careers in Aerospace website, a new Careers Management Platform and various employability and diversity webinars and podcasts. During the summer of 2021, the team were able to return to some in person engagement, including the World Skills UK National Finals at HMS _Sultan_ , oncampus membership and careers workshops for students and the team began plans for a RAeS annual recruitment fair, following the success of the first ever virtual event in 2020. The decision was taken to continue the event virtually for the safety of exhibitors and visitors. ## _**Delivering Careers Support During COVID-19**_ ## _**Free Career Webinars**_ As the Covid-19 pandemic continues, albeit, the sector appears to be in a better position now, a key focus for 2021 has been focusing on the careers and CV support service and continuing the virtual delivery models. As the impact of the pandemic continues to be apparent in the workforce, the ESD team provided two dedicated careers-related mini-conferences in May and June to provide support for early careers, experienced careers professionals and pilots impacted by the crisis. Featuring expert panellists from the Society’s membership and RAeS Staff Team to give personalised stories and advice. Over 400 attended the live event which is now available on-demand. **Page 3 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** ## _**Free online careers service**_ The Society’s 1-2-1 careers advice service continued online, offering free personalised support to all careers levels with over 200+ users in just ten months seeking help with CV writing, job search, understanding transferable skills and career transition. These included mid-career professionals, many of whom had not experienced any significant career downturn in the past and were feeling particularly concerned. Another affected group have been pilots who lacked confidence in transferring their skills and knowledge to non-flight deck roles. However, 2021 saw a significant increase in opportunities in the sector compared to 2020. ## _**University & Student Engagement**_ The Society’s engagement with universities and students was a mixture of both virtual and in-person. The ESD team delivered dedicated careers and employability workshops to colleges and universities across the UK including: - University of Hertfordshire - University of Nottingham - University College Birmingham - Cardiff Sixth Form College - Kingston University - Cranfield University The workshop content was modified to help students navigate the current circumstances and look at the key skills and qualities needed to transition to the new normal, such as virtual working, virtual recruitment and resilience as well as career transition and planning. Staff also participated at external virtual careers events including: - 7th Physics Industry Recruitment event - Cranfield University Summer Careers Fair - National Careers Guidance Show – London ## _**Careers in Aerospace & Aviation LIVE 2021**_ Once again, the Society’s annual recruitment fair was one of the biggest events in the calendar. The November event saw over 600 visitors join the Society virtually once again from all over the world. This flagship event for the ESD team was vital to showcase opportunities in sectors such as space and defence, as well as training and development, the team created a full programme to provide further careers support tailored to the current climate. Boeing UK kindly offered to help with the continued use of a dedicated virtual events platform, enabling the Society to offer an interactive and engaging experience. Over 600 visitors from all over the world interacted with the exhibitors through virtual meeting rooms who, along with Boeing, included: - Cranfield University - Safran - Martin-Baker - Leonardo - UK Space Agency - Innovate UK – Future Flight Challenge - Talentview - • Flightcrowd In addition, the platform enabled the Society to run a full programme of online careers insight talks covering space, defence, urban air mobility and specific advice on CV writing and career transition for all ages. There was excellent feedback from the visitors, particularly as the event helped them see where opportunities could lie. Content from the day is also now available to view for free via the RAeS YouTube channel. ## _**Cool Aeronautics**_ Before the pandemic hit, seven Cool Aeronautics events were held in January and February. These included continued events with partners at RAF Halton, Derby Airfield, Stansted Aerozone, Atlantic AirVentures (Shannon) and the event returned to Heathrow which was kindly hosted by British Airways at **Page 4 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** its Waterside HQ with support from the RAeS Heathrow Branch, where children from local schools met BA pilots, engineering apprentices and staff. Between January and March Cool Aeronautics reached over 450 attendees across 13 schools in the UK and Ireland. ## _**Cool Aeronautics Webinar**_ With the complete closure of schools and safeguarding challenges in moving Cool Aeronautics to a virtual platform while children were at home, staff looked at other ways to inspire the next generation and promote STEM subjects and decided to trial the first ever ‘Cool Aeronautics At Home’ pre-recorded webinar in July aimed at parents, schools and children, featuring an interactive, fun-filled session hosted by space education expert Jo Fox and speakers who had supported the live events from the world of space, engineering and flight. Also available to view on-demand on the RAeS YouTube Channel, the video has seen over 350 views to date. ## _**Inspiring Our Future - Cool Aeronautics**_ Cool Aeronautics is the Society’s flagship programme for primary schools, aimed at educating and inspiring students aged 8-11 about the world of Aerospace & STEM. The programme has been running for over ten years and we have reached many children across the world over the years with the live events, webinars and online content. In 2021 the Society had to drastically limit the number of live events for schools due to the ongoing Covid19 pandemic, however this didn’t stop the Society from continuing to inspire the next generation via virtual means. In May 2021 the Society produced a second part to the ‘Cool Aeronautics at Home’ series which showcases aerospace professionals such as Pilots, Engineers and Space personnel and provides young children an insight into the industry through online learning. The Society was grateful to have ‘SheMaps’, who engage with schools the world over, to showcase and educate young people on drones and the rise of the UAV sector. They joined the RAeS all the way from Australia and the Society look forward to continuing to work with them. The Society was also delighted to be joined by Air Traffic Controllers from Eurocontrol based in the Netherlands and RAeS member Steph Smith who works as an Aircraft engineer for Airbus. This webinar was received very well and is available to watch on the RAeS Youtube channel along with the wide range of inspirational videos. The Society was thrilled to have had the support of the RAeS Derby Branch with its thriving network of young graduates eager to partake in STEM outreach and give back to the community. The Derby Branch conducted two events in 2021, one being broadcast live into various schools in the Derby area. The Branch had a host of speakers from Rolls-Royce who delivered live talks on their roles and explained how young people can follow in their footsteps. A second in-person event was held in October at the Derby Museum of Making whereby 30 children from a local school took part in a day of talks by Graduates. This was then followed by hands-on activities including a demonstration of a 3D printer, a walk around of a Rolls-Royce Trent engine and a glider competition to close the day. The Society is extremely grateful to the young graduates at the Derby Branch who facilitated and supported the Society’s events this year and the Society look forward to seeing them in action in 2022. Finally, the RAeS Yeovil Branch, consisting of graduates and apprentices at Leonardo Helicopters, hosted the record breaker of the year with over 700 children participating in a live virtual event! The event was conducted by young members at the Yeovil Branch and the children were guided through a thrilling day of inspirational talks and hands-on activities conducted in the comfort of their classroom. All materials and goodies were sent to the schools in advance and the activities were guided with live virtual demonstrations from the Leonardo team. This has posed the question of whether it may be more effective to run a hybrid event whereby you can attract a larger number of students as there is no requirement for schools to budget costs for travelling to a venue. As always, the RAeS Careers Team are very proud of what the young members at Yeovil achieve year in year out, and we are eagerly anticipating the 2022 event due to take place in November 2022. While the pandemic has changed the way we operate, it has certainly allowed the Society to gain a wider reach in terms of student participation and we aim to bring Cool Aeronautics to all children across the UK, so this is a positive start. Going forward, the Society would like to bring back live events at venues such as Stansted Airport, RAF Halton, National Space Centre and at RAeS HQ in London and hopefully 2022 will be the year where the Society is able to return to a normal schedule. RAeS Careers would like to thank all the speakers, activity providers, partners and volunteers for their outstanding contribution to inspiring the next generation through Cool Aeronautics over the past year and its onwards and upwards from here. **Page 5 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** ## _**Fun Kids Radio and Amy Aviation YouTube**_ The impact of the pandemic meant that encouraging engagement with the Society’s existing resources also became paramount. To highlight the Amy Aviation series and encourage parents to use it during ‘at home learning’, staff worked with the Society’s radio partners Fun Kids, to promote the Amy Aviation video series - featuring character Amy Aviation take children on a journey through engineering and flight - with a fun competition and produced free resource packs for parents struggling with home schooling. Available as free podcasts and YouTube animated videos, total video views have soared over the past year now totalling c. 300,000 views overall, with the resource proving particularly valuable with the impact of coronavirus. Most popular videos include: - ‘How propellers work’ (80,000 views) - Satellites (52,000 views - Radars (41,000 views) - Pilots (24,000 views - • Jet Engines (21,000 views). ## _**Careers in Aerospace Website**_ The team continued and completed the development work following the support received from the Department for Transport (DfT) in March 2020. The website now has a brand new and dedicated section for Aviation and role model case studies section called ‘AeroStories’ The website continued to be a valuable resource. New visitors totalled 88,505 over 2021, up by 21,000 on 2020. Apprenticeship information remained one of the most popular pages (30,000 views), the Careers Directory (7,000 views) and links to all RAeS new career webinar recordings, resource packs etc were uploaded with the Skills pages seeing 4,000 views. Aerospace Engineering, Aircraft Maintenance and Careers Resources also remained popular and in 2022 work will continue to promote the new Aviation and role model AeroStories areas to support industry recovery. ## _**Social Media**_ The RAeS Careers team Twitter account, @RAeSCareers, continued to see increased engagement with 2,236 followers achieved by December 2021. Top tweet of the year was in November to announce the World Skills UK Aero Engineering Mechanical competition finalists. ## _**Diversity and Inclusion**_ The Society’s work continues in removing the barriers to inclusion within aerospace and aviation so that all voices are heard, listened to and acted upon. 2021 has seen continued emphasis on activities in support of the Society’s Diversity & Inclusion Strategy. This work is sponsored by the Society’s dedicated Diversity & Inclusion Committee. In January, the Society held the first annual Mary Jackson Named Lecture. This lecture celebrates the work of individuals from ethnic minority communities within aviation and aerospace and is the first Society lecture to be named in honour of someone from the Black community. This lecture is held jointly with the American Institute of Aeronautics and Astronautics (AIAA) and we were delighted to welcome Dr Moogega Cooper, the Planetary Protection Lead for the Europa Lander concept at NASA’s Jet Propulsion Laboratory, as the inaugural speaker. In February we held a D&I Forum for the Society’s Specialist Groups. This event was designed to help Society volunteers, particularly those in leadership positions, to make progress against the Society strategic diversity and inclusion objectives. This includes giving them the understanding to help them develop their own plans for diversity and inclusion as part of the Society’s aim to mainstream D&I throughout all its activities. The Society engaged in the Royal Academy of Engineering’s Diversity Progression Framework benchmarking exercise at the beginning of the year (the first such exercise since 2017). There was a general increase in the Society’s position versus 2017, noting that there have been some changes to the structure of the Framework in its v2.0 edition. The Society published its progress to coincide with International Women in Engineering Day (INWED) in June. It also supported INWED by releasing a free podcast on its SouncdCloud channel, featuring a number of female engineers and Society members, who **Page 6 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** provided an insight into their experiences of joining the industry, mentoring and other aspects of what inspired them to pursue a career in our sectors. The Society hosted an LGBT+ Network Roundtable Event on 14 June 2021. This brought together representatives of Pride networks from a number of the Society’s Corporate Partners. The event was wellrepresented from across aerospace and aviation and there was a clear appetite amongst attendees for the Society to do more in this area. The D&I Ctte held its first joint session with the D&I Working Group of the American Institute of Aeronautics and Astronautics (AIAA) on 21 July 21. This session was further to the Memorandum of Understanding signed between the RAeS and the AIAA in 2020 to work on common issues of interest. With Covid restrictions eased in the UK, the Society, with support from the UK Department for Transport, members and partners, hosted the first joint seminar between the Diversity & Inclusion and Education & Skills Committees. The “Developing People during Covid-19 - Lessons Learned for Aerospace & Aviation Recovery” seminar discussed topics including: peer support networks, online training and learning, remote working and the future of D&I post the Covid-19 pandemic. In October, the Society celebrated Black History Month, with special content in that month’s edition of AEROSPACE and also with a podcast between Wayne Davis from our Publications Department and author Andrew Rajan. The Society also supported an Ethnic Minorities in Defence Event held at Aerospace Bristol. ## _**ALTA Mentoring**_ The Alta mentoring programme for women, a partnership with Airbus, RAF, UWE and Little Blue Private Jets, is a blended programme based on an online matching platform and supporting events, which grew to 400+ users, and we organised a number of virtual mentoring events to connect Alta mentees during Covid. The platform is free to all users and open to members and non-members as part of the Society’s public benefit commitment and provides a secure way for women to connect and arrange mentoring sessions, supported by guidance materials. Alta continues to provide vital support and help for women who have been particularly affected by the crisis, key discussion points in breakout sessions included the impact of home schooling, furlough, redundancy and mental health. ## _**End Point Assessment (EPA) and Apprenticeships**_ EPA is the final assessment(s) every apprentice in England must undertake to demonstrate their occupational competence at the endpoint of their learning. The Society has played a key role in supporting the development of new Apprenticeship Standards for the aerospace and airworthiness sector and is a registered End Point Assessment Organisation (EPAO). ## _**EPA Delivery during the Pandemic**_ 2021 has been a year of great changes and challenges in the development and delivery of apprenticeships and, specifically, the End Point Assessment which the Society provides for a number of aerospace and advanced manufacturing engineering occupations. As the Institute for Apprentices and Technical Education got into its stride, a Route Review for a number of sectors, including Engineering, was launched. This sought to reassess all of the previously approved apprenticeships to ascertain their fitness for purpose. In addition, a consultation into Integrated Degree Apprenticeships was held. The Society participated fully in both of these and in the resultant work streams set up by employer Trailblazer groups to modify existing Apprenticeship Standards and Assessment Plans and to develop new ones. By the end of the year, solid progress had been made but the work will be on-going through 2022. A major change for End Point Assessment Organisations (EPAOs), such as RAeS, was the decision to hand the external quality assurance function for all apprenticeships, on a phased basis, to the awarding bodies’ regulator, the Office of Qualifications and Examinations Regulation (Ofqual). The aerospace **Page 7 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** apprenticeships assessed by RAeS were included in the first phase and this required that Ofqual recognition be achieved by the middle of the year. The recognition process is extremely rigorous and it required that all of the RAeS policies and procedures be reviewed and revised to bring them into line with Ofqual’s stipulations. In support of the application, which was successful at first attempt (the success rate at the time of application being less than 10%) over 100 supporting documents were submitted. These included policy documents on, for example, conflict of interest, risk management, the business cycle (develop, deliver, review) etc and all of the operational documentation – guidance documents, report forms and so forth. While this was clearly a team effort, the then Head of Education and Skills and Ofqual Responsible Officer, Rosalind Azouzi, played the key role in interpreting the Ofqual requirements, creating new policies and co-ordinating all of the responses to the various sections of the application. To ensure the Society remains fully compliant with Ofqual’s regulations, the End Point Assessment Standards Panel was expanded. Always strong on occupational knowledge, the panel needed to ensure that the more pedagogical aspects of assessment were also fully covered and thus two new members from academia were welcomed into the fold. Covid restrictions continued to play their part throughout the year but previously agreed flexibilities continued to be permitted to the end of the year and will continue into 2022. Much of the assessment and quality assurance activities were carried out remotely and without any ill effects on the quality of the work or its outcomes. Numbers of assessments continued to increase and towards the end of the year a campaign was launched to recruit more assessors to carry out the work, particularly in the area of advanced manufacturing engineering where occupations outside of aerospace are also assessed. In total, 283 assessments were carried out during the year. As more and more small to medium-sized companies approached the RAeS to conduct EPA for their apprentices, there was a growing need to provide assessment of Occupation Competence, in addition to Professional Competence. We are very grateful, therefore, to the excellent team of assessors who have stepped up and undergone the additional training required to do this. It bears reaffirming that the RAeS is only successful in providing its assessment services to the industry because of the quality and the commitment of RAeS members who play diverse roles in their development, rollout and monitoring. Due to the additional requirements imposed by both the Institute for Apprentices and Technical Education (IFATE) and Ofqual, it was not possible to complete the work on the applications to assess two new Standards – Systems Engineer and Power and Propulsion Engineer – and thus it is intended that these applications be submitted early in the following year. ## **Knowledge** The Society continuously strives to be recognised as the leading professional community and independent source of knowledge for the aerospace, aviation, and space industries. By providing influence and leadership through dissemination of impartial, evidence-based, authoritative knowledge and information, the Society remains relevant to members, supporters, and stakeholders, as well as demonstrating public benefit to the wider society across the globe. As such, the RAeS network of members within the Specialist Groups, Branches and other Boards and Committees continues to play an important role in offering insight and delivering intellectual output. In addition, the Society maintains its alliances with key national and international partners to extend and amplify the reach of key messages and has worked collaboratively as a member of the International Council of Aeronautical Sciences (ICAS) and the Council of European Aerospace Societies (CEAS), both of which organised large academic congresses that the RAeS supported and participated in during 2021. ## _**Sharing Knowledge Through Events**_ In 2021 the Society continued to successfully deliver a virtual events programme and introduced its first hybrid event in October, enabling delegates, speakers and sponsors to participate either online or in person at No.4 Hamilton Place. Overall, the Society held 15 conferences, four of which were hybrid, 18 public free to attend lectures (16 webinars and two in person) and eight Corporate Partner briefings all held via webinar. The conference programme attracted 1,717 attendees and the public lecture programme 3,360 **Page 8 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** attendees. The Society also procured a new and more cost-effective virtual event platform making significant savings and empowering the Events Team to deliver the events production and digital delivery inhouse. One event highlight of 2021 was the 47th European Rotorcraft Forum that the Society was proud to host. This premier, international event in the rotorcraft calendar attracted over 200 speakers and delegates from across the sector and world where they discussed advances in research, development, design, manufacturing, testing and operation of rotorcraft. The forum included 107 technical papers, 35 technical breakout sessions and ten high-profile plenary sessions all delivered virtually. The President’s Space Conference and the Climate Change Conference also included high-profile speakers and attracted a wide international attendance and significant sponsorship. The Society looks forward to continuing to deliver its larger events and conferences in a hybrid format, where cost effective and safe to do so in 2022. ## _**Learned Resources**_ As restrictions caused by the pandemic led to the Society’s Farnborough-based National Aerospace Library (NAL) being closed to the membership and wider aeronautical community for the first five months of the year, there was continued focus on delivering material electronically. In 2021 the number of e-books available to members around the world more than doubled. With part-funding from the RAeS Foundation the Librarian purchased perpetual access to the AIAA’s back catalogue of e-books, containing over 300 titles exploring the cutting edge of aeronautical and astronautical science and engineering over the past 50 years. The AIAA collection was supplemented by a new collection of e-books aimed at RAeS apprentice members and new professionals in addition to maintaining access to other e-book and e-journal services. The Library Team continued to help the aviation community during lockdown by releasing a classic lecture podcast each week, before reverting to monthly releases once restrictions were relaxed. 2021 highlights included papers from conferences marking Gagarin’s first spaceflight, the achievements of Handley Page Ltd, the development of the F-35 Lightning II and a lecture on Lanchester's Contributions to Aeronautics by Dr Theodore von Kármán HonFRAeS. During lockdown RAeS podcasts received around 125,000 listens. The Society’s online Film Archive continued to perform well, with 130,000 views, most coming from two rare Miles Aircraft films. A small number of recordings of lectures were added to the site during 2021, including an excellent lecture showing how Sir Alan Cobham brought the excitement and glamour, challenges and enthusiasm, thrills and spills of aviation to literally millions of people in the early 1930s and, by matching the original slides and videos to an audio soundtrack, we recreated a lecture on a Canadian project which successfully built and flew an ornithopter. As well as undertaking the core work of the library, helping people across the world to use the Society’s unique collections, and collecting the best of newly available material, a lot of work has been done to launch the first stage of a new library catalogue. A new portal will enable users to access digital copies of an increasing number of RAeS publications, including conference proceedings, gems from the RAeS archive such as letters from the Wright brothers and items from photographic collections. The portal will also bring together details of the RAeS library, e-library, archive, and image collections all under an easyto-use platform. The NAL continued to be supported by volunteers who gave their time to the library and to the Society. Their work editing audio and video content, conserving books and pamphlets, exploring and better describing details of hidden documents, articles and other gems within the collections has enabled the Society to bring yet more of its collections to the worldwide aero community. The work of one volunteer, Mike Stanberry FRAeS, together with former Chief Librarian Brian Riddle, was recognised by Aviation Heritage UK with both being presented with lifetime achievement awards. The Society’s Librarian has also continued to play a key role in the wider aero archives community, by giving a paper and helping to organise an AHUK event on aero archives, chairing an online event for the Aviation and Aerospace Archives Initiative and helping to create an online searchable guide to the archives of UK aircraft manufacturers. ## _**Publications and Communications**_ The publications of the RAeS experienced another strong year with all achieving greater reach and increased readership. _AEROSPACE_ is now available on an app to all members while _The Aeronautical Journal_ is now available to all members online for free. **Page 9 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** The Duke of Edinburgh’s death was commemorated with a dedicated _Journal_ collection created featuring his contributions to the Society and an article in _AEROSPACE_ . And the Society can proudly announce that _AEROSPACE_ is now mailed out in a totally compostable wrap made from natural potato starch and other biologically sourced polymers. Now all paper and packaging for both _AEROSPACE_ and _Journal_ are environmentally friendly and totally biodegradable. ## _**AEROSPACE**_ In 2021 Publications saw another successful year with _AEROSPACE_ continuing to set the agenda, despite the challenges of remote working brought on by the pandemic. Last year saw the production of a wellreceived UK spaceflight-themed special issue of the magazine in May, while the summer saw _AEROSPACE_ return as media partner to the high-level RAF Global Air Chiefs’ Conference. In 2021 the Editor-in-Chief, Tim Robinson, won an Aerospace Media Award for 'Best Commercial Aviation' submission for an article on Airbus' hydrogen airliner plans. Meanwhile, the magazine itself narrowly missed out picking up a prize at the Trade Association Business Publication Awards (TABBIES) when it received Honourable Mentions in the 'Feature Article' and 'Front Cover' categories. In September, _AEROSPACE_ reported from the DSEI exhibition in London while in November, under challenging circumstances, it covered the Dubai Air Show – the first in-person major aerospace trade exhibition and air show since the pandemic began. The magazine also led the way in COP26-related environmental articles and news, with features reporting on Airbus' Climate Summit, Boeing's sustainability efforts, Rolls-Royces' record-breaking electric aircraft and ATI's FlyZero project. In defence, the magazine also assessed the long-awaited _UK Integrated Review_ . In September, the Insight blog also marked the legacy of 9/11 some 20 years on. In 2021, the magazine and Insight blog also extensively covered RAeS events and news, including the Light Aviation Design Conference, Alternative Propulsion, AI and drones, mental health, piloting skills, contrails and climate impact and the UK as an emerging space power. ## _**The Aeronautical Journal**_ _The Aeronautical Journal_ celebrates its 125th anniversary during January 2022. Much of 2021 was spent producing a now available commemorative edition. This showpiece issue includes contributions from key figures at NASA, Delft, Loughborough University, Boeing, Cranfield, Georgia Tech, the University of Manchester and Professor Gareth Padfield’s last completed research paper. Two special issues on Smart aircraft and featuring papers from The International Society for Air Breathing Engines (ISABE) were produced. The _Journal_ no longer publishes a paper version. It is now an e-Journal which has resulted in article downloads increasing by over 50% during 2021. Moving to online only will also eliminate print and distribution costs from the accounts, significant as these costs have recently risen steeply due to Brexit and Covid. A 20% year-on-year increase in revenue was announced by co-publishers Cambridge University Press during 2021. The Society is pleased to confirm that the Impact Factor for _The Aeronautical Journal_ has increased from 0.663 to 0.818, an increase of over 23%, making further inroads into the leads of larger, better resourced competitors. The time taken for a paper to reach publication from receipt has reduced by 17%. Equally pleasing is the fact that a record number of submissions have been received with 281 papers. _The Journal of Aeronautical History_ celebrated its tenth anniversary last year under its new Editor, Dr Robert S Hopkins III FRAeS. Six articles were added to _The Journal of Aeronautical History_ during 2021, while scores of book reviews have been published across the three titles throughout the year. ## _**Social Media**_ The RAeS social platforms remain an extremely important set of communication channels both for external and member-facing comms. The Society’s Twitter feed currently has 21.1k followers, 12k on Facebook, 29.3k on LinkedIn and 2k on Instagram. In 2022 a new TikTok platform will be launched to access a whole new demographic with the provision of relevant content for that channel. ## _**Continuous Comms Improvements**_ There has been significant change in staffing in the communications side of the External Affairs team this year. This brought about challenges, but also opportunities to look at what the Society is doing and continue to drive improvements and positive changes. **Page 10 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** The Society currently sends out an e-newsletter fortnightly. This includes a roundup of latest news from the Society, featuring written, audio and video content. In 2021 23 newsletters were distributed, an increase of (+15%) of the previous year. The average open rate in 2021 for these newsletters was 20% with an average click to open rate of 12.75%. The hope is to improve both these figures in 2022. ## _**Policy Engagement**_ Providing independent, authoritative, and evidence-based advice and input to policy makers is a key objective of the Society, and the remit covers a huge swathe of policy areas. In 2021 we submitted evidence or contributed to eight UK government or parliamentary consultations. All are available on the Society’s website. These were on topics including sector recovery from Covid, the UK Government’s transport regulatory review, the Comprehensive Spending Review, degree apprenticeships, net zero aviation and space. Early in 2022 there are further consultation responses in the pipeline including the House of Commons Science and Technology Committee’s inquiry into diversity in STEM where the Society’s previous work in this area will be highlighted. In 2022 the Society hopes to continue this trend of providing input to consultations and inquiries but would also like to broaden the output to be more proactive in those areas identified as external relations priorities, namely: - Climate Change and Sustainability - The Future of Flight and Spaceflight - Tomorrow’s Aerospace Professional On the policy front the RAeS continues to be a key partner of the National Engineering Policy Centre (NEPC) which is co-ordinated via the Royal Academy of Engineering. The Centre aims to be a focal point for the Government in accessing a whole range of engineering policy expertise and, while still relatively new, is going from strength-to-strength. The Society continues to assist with its strategic development. ## _**Parliamentary outreach**_ In 2021 the External Affairs Team commissioned some research to find out how well understood the RAeS is among parliamentarians. The results will provide a good baseline from which to grow, and there is much that can be done to promote the Society, and its knowledge and expertise, in Parliament. While 84% have heard of the RAeS, only 9% knows the Society either ‘well or a fair amount’. More parliamentary outreach will be conducted in 2022 to improve those stats and using the themes above, which enjoy significant latent interest amongst MPs and Peers. ## _**Branches and Divisions**_ The RAeS international Branch network has continued to embrace the online delivery of learned output and during 2021 successfully hosted over 200 virtual events and lectures. These events were free to join and open to all. Additionally, many of the lectures were recorded and have subsequently been uploaded to the internet for even greater accessibility and public benefit. The events included the Singapore Branch relaunch on 1 September with a lecture on sustainable aviation delivered by Dr Albert van Heerden from Cranfield University. At a lecture event on Sunday 25 July the Coventry Branch celebrated its 95th anniversary. The Coventry Branch was the first to be formed under rules for the formation of Branches issued by Council in 1926. Fittingly, the 2021 Annual Branches Conference was hosted by the Coventry Branch on the weekend beginning Friday 8 October. The theme of this year’s event was Sustainability & Young Professionals which was incorporated into the usual conference agenda. The event started with an insightful tour of the new state-of-the-art Meggitt manufacturing facility and global headquarters at Ansty Park which included a technology presentation on additive manufacturing which was delivered by Meggitt graduates. Conference business took place on the Saturday which was preceded by a focus talk on ‘Young Professionals’. The 2021 annual Branches Brief took place online via Teams on 13 May. The key theme of the event was to discuss strengthening the Branches network and its role in the Society post-Covid. Branch delegates were invited to exchange experiences and best practice from the previous 14 months activity. In total, the event attracted 52 attendees including representatives from Washington DC, UAE, Munich, Paris and Toulouse Branches. It was clear during discussions that Branches are keen to marry the best of pre-Covid legacy operations with the excellent digital experience and skills recently acquired. **Page 11 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** Geoff Wilkinson MRAeS has taken on the role of Australian Division President. Geoff has accrued nearly 45 years of global aviation professional experience. His commitment spans airline finance, flight operations, aerial reconnaissance, airport engineering consulting, mentoring senior airline personnel and his current university aviation lecturing responsibilities. He also continues researching postgraduate airport engineering safety. ## _**Young Persons Committee (YPC)**_ The 2021 Young Persons Conference ‘Next Generation Opportunities in Space’ was held virtually on Friday 17 September 2021 and was kindly sponsored by Telespazio UK. Following the Young Persons Committee survey (conducted in March 2021), Space was highlighted as a main topic of interest among young people, and this duly guided the theme of the conference. The aim of the conference was to showcase the variety of specialist areas and opportunities within the space sector and to inspire delegates. The annual AeroChallenge virtual quiz and secret build challenge event took place on 10 March and was once again kindly sponsored by Leonardo. The event was a great success attracting 260 participants from universities in the UK and internationally, Pakistan and South African Divisions and team entries from Boeing, MBDA, Leonardo, BAE, Atkins, Emirates Aviation University and ISAE Supaero. The scores were very tight, and the design challenge submissions were of a high standard, so this year there were two individual winners: Ella Senior from Oxford University and Ryan Ross from BAE Air. The winning team was adjudged to have been BAE-Blades from BAE Systems. ## _**Woman in Aviation & Aerospace**_ The Amy Johnson lecture took place on 8 July and was delivered by Air Commodore Suraya Marshall. Air Cdre Suraya Marshall’s presentation covered leadership, inclusivity and the shape of future careers in the RAF. Since November 2019, she has been Commandant of the Royal Air Force College Cranwell, the RAF's aircrew and officer training academy and, in October 2021, was promoted and appointed as Air Officer Commanding 2 Group. The lecture attracted over 200 attendees and many excellent reviews. ## _**Specialist Groups**_ The RAeS Specialist Groups are to be congratulated for delivering learned output despite the challenges of Covid. Specialist Group contributions to events, papers and consultation responses are, of course, fundamental for the advancement of knowledge and key to the Society’s status as a learned body. One major issue considered by Specialist Groups is the Net Zero challenge for aviation. For instance, Specialist Groups provided a significant contribution to the RAeS response to the Department for Transport’s Jet Zero Consultation paper submitted in September, and the Greener by Design Group continued to produce its Annual Report. In the first part of the year the impact of the Covid pandemic on the industry was very much in everyone’s minds. As such, and through its Events Working Group (EWG), the Specialist Groups Co-ordinating Committee (SGCC) took a strong interest in helping with the development of a virtual conference discussing how aviation could recover. This event was the first using the new SpotMe virtual conferencing platform which has subsequently been used throughout the year. ## _**Medal and Awards**_ The Society has been honouring outstanding achievers in the global aerospace industry since 1909, when Wilbur and Orville Wright came to London to receive the Society’s first Gold Medal. In the years that have followed, honouring world aerospace achievers has become a permanent tradition of the Society. The following list of medals and awards are given out by the Society each year: - **The Sir Robert Hardingham Presidential Sword:** This is a prestigious award presented annually by the Society’s President in recognition of outstanding service to the Society. - **Distinguished Service Award:** This Award is conferred on Society members who have provided long and meritorious service to the Society or for particularly meritorious service of shorter duration. - **Honours:** This is the world’s highest distinction for aerospace achievement awarded for only the most outstanding contributions to the aerospace profession. This honour is conferred on those whose **Page 12 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** careers, leadership, inspiration and impact marks them out as among the most eminent, widely recognised and influential aerospace professionals of their generation. - **Medals:** Awarded for major contributions to the advancement of aerospace art, science and engineering; RAeS Gold, Silver and Bronze medals are awarded to both individuals and teams. - **Specialist Awards:** These are conferred on individuals or teams working in a formally recognised or otherwise well-established professional discipline. The awards recognise advances, innovation, excellence and long or meritorious service that has had a significant impact within the discipline in advancing aerospace art, science and engineering. - **Young Persons’ Awards:** The Society confers awards recognising achievements by young people, both individuals and teams. - **Civil Cadet Pilot Award:** The Civil Cadet Pilot Award is awarded to the civil cadet pilot who, during their course at an ATO, demonstrated outstanding achievement and/or potential and who provided exemplary inspiration to their peers, professionally and personally. - **Written Paper Prizes:** These are awarded annually for the best papers published in _The Aeronautical Journal_ by the Society during the previous calendar year. - **Young Persons’ Written Paper Prize:** Awarded for the best published paper produced by a young person or a group of young people who are all under 30 years of age. - **Journal of Aeronautical History Written Paper Prize** : started in 2018 this is awarded annually to the paper published in the _Journal of Aeronautical History_ during the preceding calendar year that is most likely to engage and excite the widest possible community of professional and other interested groups, it should exemplify the best in terms of communicating aerospace history to inspire future developments. The Medals and Awards Committee (MAC) has managed to function effectively despite the impact of Covid with all meetings being ‘virtual’. The closing date for nominations for Society Honours, Medals and Awards is normally 31 March each year, however due to the on-going impact of Covid 19 the closing date was extended to 31 May 2021. By that date the Society had received a total of 59 nominations. Of these nominations, 60% were from the UK, including ten from the UK military. In addition, nominations were received for individuals from the United States, Pakistan, India, Germany, Italy, Australia, Czech Republic, Malaysia, and Sri Lanka. A total of eight were nominations were for women and nine nominators were female. There were also eight nominations for Young Persons’ awards, and the Society received ten nominations for teams. The awards were duly announced and presented at No.4 Hamilton Place on 22 November 2021 at a Covid-compliant event. ## **Membership Services** Membership Services covers the services and activities supporting both individual and corporate members of the Society and the public interested in aviation. Despite the continued problems caused by the pandemic in 2021, the Society finished the year with 25,140 (2020: 25,110) members. During the year the Society’s membership team had focused on both the recruitment of new members and on the retention of existing members. The Society has continued to look to grow its membership benefit offering, with a strong focus on continuing professional development and mentoring support, with the launch of the Society’s new Learning Management System, Aeroversity. Available and free to all Society members, Aeroversity brings together the growing collection of learned content and professional development resources; Aeroversity supports members with digital and blended learning and CPD experiences. Aeroversity also provides RAeS members with access to an online Initial Professional Development (IPD) and Continuing Professional Development (CPD) recording tool, MAPD – My Aero Professional Development. Within MAPD members can record professional development plans and activities and add reflections to highlight the impact of the activities on their profession or development. **Page 13 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** In 2021, The Royal Aeronautical Society launched its partnership with the Chartered Management Institute (CMI) to offer RAeS Incorporated Engineer and Chartered Engineer members, a route to becoming a Chartered Manager (CMgr), along with discounted CMI membership. The Society continued to promote membership and Engineering Council professional registration through an increased online presence; membership recruitment and retention activities continued virtually as the implications of the Covid-19 pandemic and associated restrictions continued in the first half of 2021. As the year progressed, the team participated in some on-site briefings, however, predominately held these virtually. The team also supported virtual industry exhibitions, including the UK Space and Chief of the Air Staff Conferences. Working closely with companies and volunteers and through an online delivery of briefings, workshops and mentor training, the Membership Development Team has continued to be active in its engagement with the aerospace and aviation community. A full programme of online webinars continued to guide new and upgrading members and those considering Engineering Council professional registration, reaching over 600 people; with the team delivering 20 general introductory membership and professional registration webinars and a further ten organisation-specific webinars, including delivering online presentations to DE&S, Airbus, BAE Systems, Cobham, Leonardo, Rolls-Royce, Expleo Group, the Royal Navy Fleet Air Arm and the RAF. This has led to a continued awareness of the Society’s activities and membership benefits to organisations and individuals across the sector, encouraging membership to all. To further support those applying for professional registration, the Membership Team delivered over 50 1- to-1 support sessions to provide individual advice and guidance to applicants. This year has continued to see support from Society members through the nomination process, encouraging Members and Fellows to nominate colleagues for membership through a streamlined application route, which has had 200 successful applications throughout 2021. The Society remains committed to engaging and inspiring the next generation of aviation and aerospace professionals and continues to work with UK and international academic institutions to promote the benefits of membership to those at various levels of study, with the team presenting to over 32 Universities and Further Education Colleges, through live and recorded webinars. The Society recognises the importance of encouraging young people to pursue a career in the aviation, aerospace and aeronautics industries which is why it supports learners through its offer of free Apprentice Affiliate and Student Affiliate membership. The challenge of retention of the Society’s young members as they transition from academia and apprenticeships into their professional careers is something the Society continues to focus on. As an example, the Society continues to offer a reduced subscription rate for one year (e-Associate) to Student and Apprentice Affiliates who have completed their studies to ensure continued access to the benefits of membership. ## _**Registration and Engineering Council Matters**_ Following the Engineering Council’s Standards Review and the publishing of the EngC new standards in August 2020, the Society published its revised Registration documentation and guidance and has now transitioned to UK Standard for Engineering Competence (UK-SPEC) 4th edition. The Society’s registration activities continued throughout 2021, with over 140 virtual Professional Review Interviews held to assess for Engineering Council Professional Registration. The Membership and Registration Team has also trained over 20 new Professional Review Interview Assessors to continue to support Aerospace Engineers in becoming professionally registered with the Engineering Council. The Society continues to review academic programmes that provide the recognised level of understanding, knowledge and skills to underpin professional competence to help graduates on their way to registration as Chartered or Incorporated Engineers. The Society has participated in a full schedule of virtual visits to review academic programmes and professional development schemes for accreditation, including ten to Higher Education Institutions and four professional scheme visits. The Society continues to waive the cost of UK accreditation visits for Corporate Partners and it is an excellent way for an academic institution or company to gain recognition. ## _**Corporate Partners**_ In addition to individual members, the Society receives the support and participation of organisations across the global aerospace, aviation and space sector who continuously demonstrate their commitment to promoting the highest professional standards in the work that they do. Corporate Partner membership is **Page 14 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** not just about large organisations, with over 75% of Society Corporate Partners representing the SME sector and all have an important role to play in both the industry and within the Society’s activities. The continued impact of the Coronavirus pandemic across aerospace and aviation has impacted membership of the Corporate Partner scheme as companies reassess financial commitments. However, the scheme continues to attract new members, and new growth areas such as electric aviation and ‘new’ space present opportunities to expand the Corporate Partner membership. The Society’s Corporate Partner Briefings remain the backbone of the corporate events programme and took place regularly throughout the year as online webinar events and continue to attract high-level speakers and audience members. Highlights from the 2022 programme include Martin Rolfe (NATS), Alex Cresswell (Thales) and Dawn Bonfield MBE (WES). ## _**Royal Aeronautical Society Foundation - Fundraising**_ The Society is registered with the Fundraising Regulator and is committed to adhere to its Code of Fundraising Practice as well of complying with the regulatory standards for fundraising. However, the Society does not generally fundraise to the public and it does not have an internal fundraising team and nor does it engage fundraising professionals to promote these activities. In 2021, the Society did not receive any complaints from the public (2020: Nil). Though the Society does not fundraise the Society would follow the guidelines in the Code of Fundraising Practice when dealing with vulnerable groups. The Trustees established the Foundation in June 2006, to organise and co-ordinate support for the Society’s charitable activities including the Centennial Scholarship Fund (now RAeS Future Scholarship Fund), the National Aerospace Library (NAL) and other projects as directed by the Trustees. The Foundation’s committee comprises of a Chair (Chief Executive) supported by a small team drawn from the aerospace community and senior staff. Since 2008/2009 the Foundation has focused on promoting Gift Aid to the Society’s membership and ensuring that these funds are used to support the Society’s charitable objectives. Though Gift Aid is currently under review and no claim was made in 2021 (2020: nil), the Foundation continued to support a number of projects in 2021 (though several have been delayed until 2022 due to Covid-19) totalling £35,392 (2020: £34,089); the following projects are currently (2021/2022) being supported: - Unconscious Bias Training for Professional Engineering Institutions; - Cool Aeronautics (travel and venue costs for schools); - Online Mentoring Platform; - AeroPortal – Young Member’s App and Web Viewer; - Digital Media costs to support live streaming of Branch lectures; - Digitisation of the Society’s film and sound archive; - Student/Apprentice Learning & Development; - University Campus Engagement; - Aerosociety Heritage Website - External STEM & Skills Exhibitions - Digital Lectures and Talks - CPD/Careers Website; and - RAeS Future Scholarship Fund (formerly Centennial Scholarship Fund). ## **Financial Review** As a registered charity the Society is required to prepare its accounts under the Statement of Recommended Practice (SORP FRS 102). In the accompanying Statement of Financial Activity (SOFA) expenditure includes both the direct cost of the activity plus supporting costs which are apportioned on a basis consistent with the use of resources and is based on either the number of staff working on that activity or time allocated to support the activity. When comparing income against expenditure some activities such as Careers and Education, National Aerospace Library (NAL) and Publications and Information show a loss for the year. However, it should be noted that these activities are also supported by Membership Income which is not reallocated in the SOFA and are part of the benefits supplied by the Society to its members. **Page 15 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** ## _**Income**_ Total income increased by 3.5% to £4,383,664 with total unrestricted income increasing by 4.5% to £4,206,308. ## _**Income from Donations & Legacies**_ This comprises donations to various funds which have increased from £130,950 to £158,958 in 2021. This was from donations and contributions from individuals and organisations including £30,059 from Boeing and £47,990 (2020: £59,663) raised by the Society’s Branches to fund their activities throughout the year. There was no Gift Aid in 2021 due to an ongoing review (2020: nil). ## _**Income from Charitable Activities**_ At £3,829,190 (2020: £3,680,127) this represents 87.4% of the income generated by the Society in 2021; the principal income sources being Membership Services (including individual and Corporate Partner subscriptions), Conferences and Events and Publications. Income from Membership Services represents just over 67% of the Society’s income and decreased by 2.4% in 2021 from £3,023,941 to £2,952,683. The annual subscriptions fees (for individual and corporate members) were frozen in 2021 and other income generated through sponsorship and delegate fees from membership and corporate events. Due to Covid-19 the Society’s HQ remained closed in 2021. The Events Team continued to hold conferences and seminars on the virtual platform, the overall delegate and sponsorship income finished the year at £210,816 up by 30.2% on 2020. Publications income increased by 0.8% to £127,059 by increased sales of _The Aeronautical Journal_ (including archive sales) in 2021. The Education, Skills and Diversity Team generated £23,523 in 2021 (2020: £12,593), income increased by just under 87% which included sponsorship and income from its annual conference and sponsorship for some of its activity. Due to the impact from Covid-19 and volatility in End Point Assessment (EPA), it continued to have delayed assessments in 2021 while some companies were committed to completions on time and income increased by just over 51%, finishing the year at £507,710 (2020: £335,589). ## _**Income from Other Trading Activities**_ No.4 Hamilton Place was closed until August 2021 due to Covid-19, however it reopened in August 2021 after receiving a number of enquiries from external clients. As a result, Room Hire Services income generated £236,275, decreasing by just under 4% in 2021 from £244,581. This activity is run by the trading subsidiary Aeronautical Trading Limited (ATL) which made a profit of £27,982 (2020: £7,317). Income is generated through room hire bookings from external clients (which were down on 2020 due to the Society HQ being closed until August). There are no plans to change the activities of this business, which involves the provision of facilities to external customers and the running of the members’ facilities, though it is hoped that once the Covid-19 pandemic is improved the venue can be fully reopened to external clients. ## _**Investment Income**_ Investment income decreased from £181,641 to £159,241 in 2021. Of this, £94,237 (2020: £100,318) was reinvested by the Society during the year. ## _**Expenditure**_ Expenditure decreased by 16.7% to £3,656,561 with total unrestricted spending decreasing by 17.3% to £3,547,372. ## _**Raising Funds**_ The costs of Raising Funds decreased in 2021 by 55.6% to £120,226 with unrestricted costs also decreasing by 59.1% to £105,189. Costs included Room Hire Services, which were closed until August 2021 and there was no Room Hire team in 2021 due to these services being closed until further notice. Other costs include administration and investment fees. **Page 16 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** ## _**Charitable Activities**_ Resources expended on the Society’s Charitable Activities decreased by 14.1% to £3,536,335 with unrestricted expenditure decreasing by 14.6% to £3,442,183. Costs include all the expenditure on the Society’s conference/event programmes, providing membership services, career advice service, library, and producing the Society’s publications. The Society’s headquarters at No.4 Hamilton Place continue to be upgraded (minor work) in line with its Strategic Objectives before being closed to external clients (including members) in 2021; it is intended that once the COVID-19 pandemic is improved this work will continue. In 2021 Governance costs decreased by 16.4% to £107,654 from £128,800. Costs includes staff costs for Head of Governance to oversee the support to the Board of Trustees, Council, and internal Boards of the Society. Other costs included reduced expenses associated with Council meetings, Council elections, maintaining the Society’s constitution, external audit, and core executive management, plus reduced costs for travel for the President. ## **Surplus** The net incoming resources (before losses on investments) for the year produced a surplus of £727,103 (2020: -£152,155 deficit). During the year, the Society had gained on its investment of £312,056 and actuarial gains on the Society’s Pension Scheme of £775,000. The net movement of funds for the year was a surplus of £1,814,159 (2020: -£922,518 deficit). Unrestricted funds carried forward of £9,549,491 (2020: £7,987,097) represent approximately 39 months operating expenditure. However, not all these funds can be readily liquidated as they represent the functional fixed assets of the Society. In accordance with Charity Commission guidance, the Trustees have adopted a formal Reserves Policy set out below. ## _**Room Hire Services Operated by Aeronautical Trading Limited**_ The Society closed No.4 Hamilton Place in March 2020 due to Covid-19 and it remained closed to external clients until August 2021. The Society’s trading subsidiary only had room hire bookings from August 2021 to December 2021; overall income was down by 66.1% and finished the year at £176,668. The Society continued to lease (under licence to third parties) offices on the 4th floor and overall, this has generated £70,767 in 2021 (2020: £58,879). The Society’s Trustees decided that since there was lack of commercial activity for most of the year, they would wavier all administration charges for Aeronautical Trading in 2021. The Trading company has received advance bookings for 2022 (£35,130) and these will be refunded if the Society is unable to open the building for it to provide services to external clients. ## _**Pension Scheme**_ The financial statements reflect the full financial position of the Defined Benefits Pension Scheme which became a closed scheme on 31 March 2001. The Scheme must be accounted for under FRS102 and under FRS102 the scheme’s liabilities are valued based on assumptions derived from yields on AA rated corporate bonds and gilts. Changes in the assumptions applied to the Scheme’s liabilities have resulted in a decline in the FRS102 deficit in 2021 to £858,333 (2020: -£1,686,333); in 2021 and the Society contributed £76,000 to reduce the overall deficit on the fund. From 1 April 2001 the staff pension arrangements were in the form of Group Personal Pensions and the currently pensions provider is Aegon (formerly Standard Life). The Society makes contributions, but the funds are owned by and are the responsibility of the individual staff members. From August 2015 the Society adopted Automatic Enrolment and received an acknowledgement of re-declaration of compliance in November 2018 from the Pension Regulator. Functional Assets are also used by Aeronautical Trading Limited and these are included in support costs (though were waived in 2021 by the Society’s Trustees). ## _**No.4 Hamilton Place – Purchase, Valuation and Charges on the Property**_ In March 2009, the Society purchased the freehold of No.4 Hamilton Place at a cost of £4,859,755. Prior to the purchase, No.4 Hamilton Place was leased from the Crown Estates; in 2002 the lease was revalued by the Trustees on a draft valuation of £3,864,407 (based on existing use). From 2009 the Trustees have decided to add this valuation (less depreciation) to the actual cost of the purchase of £4,859,755 to value **Page 17 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** the property in the Balance Sheet at £8,249,585 as at 31/12/2021. At the time of purchase in March 2009 the Market Value of the freehold interest in No.4 Hamilton Place was £11,700,000. ## _**Charges on No.4 Hamilton Place**_ The Society’s bankers, HSBC, have taken out a charge (not exceeding £4,255,000) on No.4 Hamilton Place to act as security against their loan. The Trustees of the Society’s Defined Benefit Pension Scheme (closed) have taken out a second charge on No.4 Hamilton Place to cover the Society’s obligations if the Society defaults on its payments to the scheme. In return, by agreement with the Trustees of the Scheme, the Society will continue to pay reduced contributions to the Scheme in future years at a rate of £76,000. ## **Risk Management** The Board of Trustees establishes and periodically reviews the Risk Register. This is actively managed by the Audit Committee. The Society takes cognisance of the risks identified in the Risk Register in forming its Strategic Plan. The Chief Executive and Audit Committee are responsible for ensuring that risk registers and management plans are reviewed regularly by the executive staff and at appropriate governance meetings, and that riskmanagement plans are acted upon, updated, and monitored to eliminate, minimise, or otherwise avoid identified risks. They are also responsible for highlighting risk developments to the Board of Trustees throughout the year. The risks and uncertainties to which the Society is subject to have been identified; mitigation measures and contingency plans are developed and will be further refined by the relevant owners. The principal risks and uncertainties for the Society are identified below. While these are consistent with 2019, the Society’s Business Continuity risk has been amended to reflect the closure of the Society’s HQ and that the Society must now conduct business in a virtual environment. In parallel, a rolling risk register was created to ensure that the Society closely managed the issues posed by the Covid-19 pandemic in 2021 which requires active management. **Business Continuity** Failure to maintain the integrity and security of our IT environment which has moved to Cloud based. **Cyber Attack** Failure to prevent a cyber breach undermines the Society's reputation. **Decline in Relevance** Failure to generate sufficient profile within the sector and beyond resulting in a perceived reduction in relevance. **Decline in membership** Decline in number of paying members and Corporate Partners (CP) leads to loss of operational and financial viability. **Loss of Charitable Status** Inadequate adherence to Charity Commission requirements leads to loss of charitable status. **Fraud and Theft** Failure to apply tight financial and operational controls leads to acts of theft or fraud. ## **Reserves Policy** ## _**Unrestricted Reserves and Designated Funds**_ 2021 was the fourth year of the Finance Strategy covering the period 2018-2022, which was approved by the Trustees in March 2018 and is reviewed annually by the Finance Committee; the Finance Strategy will enable the Society to meet its Strategic Objectives to 2022 by: - Operations to generate sufficient funds annually to ensure that the Society is fully resourced to achieve its long-term Strategic Objectives; all annual surpluses to be allocated to one of the Society’s free reserves setup to safeguard the Society against future (adverse) events; **Page 18 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** - The Society continuing to focus on re-building its unrestricted liquid reserves and increase the level to the equivalent of six months’ trading costs; and - The Society should endeavour to reduce its long-term liabilities once it has built up its reserves to a level that covers operational requirements. At the end of 2021, the Society’s liquid reserves (Free, Mortgage and Premises and RAeS Foundation Reserves) stood at £2,950,184 (2020: £2,239,424); this is 202.1% (2020: 179.1%) of the reserve target of the equivalent to at least six months’ operational costs of £1,459,407 (2020: £1,647,335); the Society achieved the Reserves target (as outlined in the Finance Strategy). However, due to the problems caused by the Covid-19 pandemic in 2021 and the continuing uncertainty of BREXIT and how this will impact on the Society’s finances in the short to medium term the Finance Committee has decided to hold back making any recommendations to Trustees to reduce it liabilities and will maintain the Society Free Reserves until the way forward becomes clearer. At the end of 2021 unrestricted reserves and designated funds were as follows: ## _**Free Reserve**_ The Trustees have reviewed its Finance Strategy, covering the period to 2021. The Trustees have decided that in view of the considerable uncertainty which characterises the current economic climate the Society should concentrate its efforts on re-building its unrestricted reserves and hold any additional cash (on interest bearing deposits) to cover any income shortfalls; at the end of 2021, the balance of the fund was £2,521,047 (2020: £1,836,837). ## _**Royal Aeronautical Society Foundation**_ The Foundation was setup in 2006 by the Trustees to organise and co-ordinate support for the Society’s wider charitable activities such as supporting aviation heritage projects supporting the next generation of aerospace professionals, as well as supporting the development of No.4 Hamilton Place (including repaying of the mortgage). This fund is a Designated Fund, and the Foundation Committee (on behalf of the Trustees) will decide each year which projects to fund out of this reserve. In 2021 the fund received £61,942 (2020: £5,100) from donations, no funds were received from Gift Aid since this is under review and claims will be held until 2021. During the year, the Trustees released £35,392 (2020: £34,089) to support various charitable projects (educational/school projects); the fund received a total of £61,942 from donations and the fund balance stood at £222,301 at the end 2021 (2020: £195,751). ## _**Pension Fund Reserve**_ Under FRS102, and in accordance with SORP, this reserve has been setup to reflect the liability of the Defined Benefits Pension Scheme which shows a deficit at the end of 2021 of £858,333 (2020: £1,686,333). The Society has sufficient unrestricted reserves to cover this deficit. At the end of 2021 there were four Designated Funds as follows: ## _**Flights Simulation Sponsorship Fund**_ Over the past couple of years, the Society has received sponsorship to support the Flights Simulation Group activities (events); at the end of 2021, the Trustees decided to transfer this income into a designated fund to support the group. At the end of the year the fund stood at £51,336 (2020: £56,417). ## _**Mortgage and Premises Reserve**_ This fund was setup in 2012 to be used to fund future capital improvements projects and to pay off the mortgage on the Society’s HQ. In 2021 the RAeS Foundation did not receive any Gift Aid so was unable to transfer any funds into this fund (normally £50k), this will be reviewed in 2022. At the end of 2021, the balance of the fund stood at £106,836 (2020: £106,836). ## _**No.4 HP Refurbishment Project Fund**_ This fund was setup by the Trustees in 2019 to be used to fund the refurbishment of the offices on the 4[th] and 5[th] floors in 2020 and 2021, No.4 Hamilton Place remained closed for most of the year the funds will be held until further notice. At the end of 2021, the fund stood at £100k. **Page 19 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** ## _**Designated IT Future Fund**_ This fund was setup by the Trustees in 2021 to be used to fund the IT projects to enhance and develop the digital capability of the Society. Due to Covid-19, there was no committed project in 2021 and the fund stood at £81.6k at the end of 2021. ## **Restricted and Endowment Reserves** ## _**Restricted Funds**_ The following are Restricted Funds of the Society: ## _**Alan Snudden Fund – Restricted**_ This is an Endowment Fund established to provide scholarships to young person’s entering, or already engaged in, the air transport operating industry. The founding deed (1992) allowed the Trustees to initially accumulate unspent income into the Endowment Fund. However, the deed now allows the Trustees to hold the income generated in a restricted fund and this was setup in 2017. Due to Covid-19, there was no activities in 2021.The fund received a total of £5,150 (2020: £5,661) from investment income; at the end of 2021, the fund stood at £34,560 (2020: £28,101). ## _**ALTA**_ This fund was created from donations from a number of organisations to support the ALTA Mentoring Platform launched in 2019; the platform was setup for women in aerospace and aviation who are seeking woman-to-woman mentoring support with easy access to professional women working in the sector. In addition, the fund supports face-to-face networking events and research to provider greater support to women’s retention and promotion within the industry. In 2021, the fund received a total of £1,125 (2020: Nil) the fund stood at £2,939 at the end of 2021. ## _**Boeing Project Altitude**_ In 2020, the company, Boeing agreed to support various projects within the Society, one being Project Altitude; the aim is to encourage young people to become the innovators of tomorrow; the fund will support various STEM-based activities and events aimed at Primary, Middle and High Schools as well as young people just starting their careers. In 2021, the fund received a total of £30,059 and the fund stood at £77,964 at the end of 2021. ## _**RAeS Future Scholarship Fund (formerly Centennial Scholarship Fund)**_ The Centennial Scholarship Fund was ceased in December 2020 and the balance of fund was transferred to RAeS Future Fund from January 2021. The aim of the fund is to support funding costs for internships in the Aerospace sector to give the recipient an insight into working in the sector and enhancing the individuals Professional Development. In 2021, the fund received a total of £10,937 from donations and investment income and the fund stood at £285,591 at the end of 2021. ## _**Flying Start Challenge**_ This fund was setup in 2020 from donations from a number of Corporate Partners with the aim to support Flying Start Challenge; an annual competition aimed at providing secondary school students to design a glider; the competition is run and managed jointly by the participating organisations. While the Society is not part of the participating organisations, the responsibility of the Society is to provide support to the participating organisations and oversees the fund. In 2021, the fund received a total of £6,500 from donations and investment income. At the end of 2021, the fund stood at £12,398. ## _**Kremer Fund**_ These are funds provided by the late Henry Kremer for the promotion of Human Powered Flight and are administered by the Society. There are four prizes set aside: Robert Graham Competition £500 Kremer HPA Schools Competition £1,000 Kremer International Marathon Competition £50,000 Kremer International Sporting Aircraft Competition £100,000 The assets of this fund are held as cash deposits and no prizes were awarded in 2021; at the end of 2021, the fund balance stood at £161,130 (2020: £163,193). **Page 20 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** ## _**Michael Bishop Foundation Fund**_ This fund was setup in 2019 by the Trustees from a donation of £25,000 from Lord Glendonbrook/Michael Bishop Foundation to fund the Sir Ralph Robins Medal; this award is given to individuals demonstrating excellence in Engineering Leadership. At the end of 2021, the fund stood at £16,453. ## _**National Aerospace Library Fund (NAL)**_ An appeal was started in 2004 towards the creation of a National Aerospace Library (NAL). In 2008 the Society opened a branch of the NAL within the Hub Building at Farnborough. In 2009 this facility was expanded and now houses the vast majority of the Society’s historic library collections. The fund is used to support some of the ongoing operations of the NAL at Farnborough as well as future capital projects. During the year, a total of £6,755 (2020: £7,425) was received from donations and investment income and at the end of 2021 the fund stood at £176,376 (2020: £163,613). ## _**RAeS Air Power Fellow at the University of Birmingham**_ In 2008 the Society began (with support from the RAF) to raise funds for the Chair in Air Power Studies with the aim of establishing an independent academic Research Fellow at a UK university. By 2015 the Society had received donations totaling £624,000 from a number of Corporate Partners and these funds have helped to consolidate the senior academic post at the University of Birmingham and now support ongoing research in this area. At the end of 2021 the fund stood at £14,542 (2020: £14,542). ## _**Schools Build-a-Plane Challenge**_ In 2008 the Society launched the Schools Build-a-Plane Challenge which aims to provide young people in UK secondary schools with the opportunity to build a real light aircraft from kits, giving them hands-on experience of building aircraft and an understanding of scientific and engineering principles behind flight. This project is supported by funding from The Boeing Company (USA) and sales of the completed aircraft. The final aircraft was sold in 2021. At the end of 2021 the fund stood at £23,994 (2020: £16,702). In 2022 the fund balance will be used to support the Falcon 2 Initiative which is an extension of the SBAP programme. ## _**Endowment Funds**_ The Alan Snudden Fund, Awards Trust and the CAARC (Commonwealth Advisory Aeronautical Research Council) Fund are held in pooled investments which were referred to as the Common Investment Fund in previous accounts. These funds are subsidiary charities of the Society as explained in Note 11. ## _**Alan Snudden Fund**_ This fund is established to provide scholarships to young persons entering, or already engaged in, the air transport operating industry. As noted under restricted funds, a new Restricted Alan Snudden Fund was setup in 2018 to hold the net income generated by the Endowment fund; at the end of 2021, the fund stood at £99,123. ## _**Awards Trust**_ This was created in 1995 from several separate funds held for the purposes of Medals, Merit Awards, Educational Awards and Lecture fees. With the agreement of the Trustees of the Society and the Charity Commission these separate funds were combined to give greater flexibility and more efficient use of those funds. In 2021 this fund paid out a total of £38,542 to cover grants and awards and at the end of 2021 the fund stood at £1,493,374. ## _**CAARC Fund**_ Through the Awards Trust, the Society administers the Commonwealth Advisory Aeronautical Research Council (CAARC) Bursaries. Grants were made in the year to a number of Commonwealth and UK candidates, however due to the cancellation of awards from previous years the fund received a net increase on grants to offset some of the admin and investment costs; at the end of 2021, the fund stood at £20,175. The Directors of Aeronautical Trusts Ltd, being the Trustees of the above funds, confirm that each has sufficient assets to fulfil its obligations. **Page 21 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** ## **Investments** ## _**Investments Policy**_ The investment advisors JM Finn & Co (appointed January 2013) manage the Society’s investments in accordance with powers delegated by the Board of Trustees. There are no restrictions on the powers of the Board of Trustees to invest under the Royal Charter. The Finance Committee is responsible for reviewing the performance of the investments each quarter as outlined below. ## _**Investment funds**_ This was set up to defray the running expenses and support the grant making (Restricted and Endowment Funds) activities of the Society. Since 2005 income generated is reinvested back into the fund. At the end of 2021, the investments stood at £4,296,997 (2020: £3,855,323); over the past 12 months investments have increased by 11.5% (against the target of RPI + 4%), though was up on the benchmark 18.3% (FSTE All Share Index). Overall, the Trustees were satisfied that the investment advisors had done all they could to protect the Society’s investments considering the volatile economic and political background in 2021; since they took over in 2013 the investment advisors have produced an overall return of 91.2%. ## _**Risk/Investment strategy**_ The investment strategy (reviewed in 2018) minimises the level of risk required to meet the return objectives, subject to achieving a level of diversification across assets classes both within the UK and overseas markets. The high levels of stock market volatility and the continuing uncertainty regarding world economic prospects and the stability of certain banks continues to make the management of investments difficult. The charity is a long-term investor and the Trustees, on professional advice, continue to hold a mixed portfolio of equities, bonds, cash, and other investments designed to provide a level of stable income and the possibility of investment gains. The equity component of the investment portfolio is weighted with medium appetite for investment risk with the main exposure to investments in the leading advanced industrial economies with a history of paying dividends. The Society does not have any ethical restrictions on its investments. However, the Finance Committee (on behalf of the Trustees) will take reasonable steps to ensure that investments are not made in institutions that, to its knowledge, operate policies or have objectives that are opposed to the aims of the Society. The Finance Committee agreed the asset allocation with the investment advisors, and this is reviewed on a quarterly basis. In 2021 the Finance Committee authorised the investment advisors to make short-term changes to the asset allocation to reflect market conditions and to give better opportunities for income and capital growth. At the end of 2021, the asset allocation was as follows: ## **Plans for future periods** The Society continues to work to the 2021-24 Corporate Plan. 2022’s Business Plan focuses on the continued recovery of the Society from the Covid pandemic, together with a strong emphasis on promoting **Page 22 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** authoritative, evidence-based policy advice and the enhancement and dissemination of the Society’s body of knowledge. The Society is moving towards hybrid conference delivery, further growth of the Society’s education and outreach work for the next generation, together with increasing the Society’s profile. The Society aims to continue to grow the Society’s membership through enhanced value as well as expanding the global reach of the Society. Ensuring the Society’s continued financial stability remains the key focus. For 2022 the main points to note are: ## _**Education, Skills, and Diversity (ESD)**_ Despite many challenges from 2021, 2022 looks to be brighter in terms of in-person engagement, the team and committees will look to maintain the Society’s online/hybrid delivery of careers support, diversity and inclusion events, ALTA mentoring and more. The key focus will be: ## _**Boeing Project Altitude**_ Following the kind support of Boeing, the Society has funding to develop blended and online events for schools, scholarships for students and additional support for the Falcon2 STEM Challenge. The first events took place in November 2021 for WMG Academy Solihull & Coventry over two days, students from years 10 to 13 had a full day of inspirational talks from Society members and supporters, including Boeing, BAE Systems, Airbus, Flight Crowd and Gatwick Airport. These were then followed by a design challenge, whereby students have to build a winged glider out of basic materials, prizes then followed for the winning design. Over the course of 2022 staff will work with Boeing and schools to produce events which meet safety restrictions but continue to inspire, aimed at secondary pupils and teachers, many of whom are struggling with the impact of long-term remote learning. ## _**Falcon2 Challenge**_ Having been delayed in 2020, The Society was delighted to officially launch phase 1 of Falcon 2 in December 2021. The Society is inviting young people aged 6-19 to contribute their design and engineering skills to design, develop and build a real-life mobile flight simulator which will be used by the disabled flying charity Aerobility. The programme has been redeveloped: Phase 1 is fully virtual – and Phase 2, the Big Build to begin in 2022. The aim is to launch Phase 1 in 2021 nonetheless and begin this fantastic opportunity to encourage inclusive engineering designers of the future and increase access to flight simulators among SEND pupils and inspire the next generation of engineers and aviators. ## _**Cool Aeronautics and Amy Aviation**_ The Society will produce more on-demand content and look to another broadcast or even face to face event later in the year. ## _**AI Careers Platform – Career Flightpath**_ To complement the Society’s advanced careers services, the Society’s Career Flightpath platform continues to be popular with RAeS members, providing support with training materials and intelligent tools to help visitors with CV support, interview practice. The aim is to reach wider audiences as the pandemic continues to affect employment in the sector, as well as help plan for returners to aerospace and aviation when recovery does begin. It will support all ages and provide a stepping stone for those who may feel uncomfortable contacting the team directly, as well as be available for international users, 24/7. ## _**Mary Jackson Named Lecture**_ The Mary Jackson Lecture will take place virtually in March 2022 in partnership with the AIAA. ## _**D&I webinars and forums**_ The D&I Committee will be holding further D&I Forums for Society volunteers, with the next event targeted at Branches. The Committee will also be organising a series of events to promote further racial diversity in the Sector, including one on the subject of terminology and a further event looking at application/recruitment processes. The Society also expects to launch in the Summer its new D&I feedback process to allow it to better understand and adapt its activities for the widest possible audience. This will be supported by a new Society D&I Policy to complement the existing provisions in the Society’s Codes of Conduct. The Society is also putting in place the technical mechanisms for it to improve the capture of diversity data to support our work to increase our understanding in this area. ## **End Point Assessment (EPA)** In 2022, training for EPA assessors and briefings for key company personnel, as well as apprentices, will be revised and reformatted so as to be delivered via Aeroversity. As the anticipated numbers of **Page 23 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** assessment to be carried out are greater than last year’s, moves are in hand to refine procedures to make best use of the automations and streamlining technologies available to the Society. This should ensure that, on the one hand, procedures are simpler for all concerned and, on the other hand, that the Society continue to have time to provide the level of personal service expected of RAeS. In compliance with Ofqual requirements, policies, procedures and documentation will undergo review throughout the year, risk assessments will be carried out and external auditing by Ofqual will be supplemented by internal audit activity. In addition, following the departure in December of the Ofqual Responsible Officer, all internal Quality Assurance activities are being strengthened to support the EPA Team meeting Ofqual’s Conditions of Recognition on a day-to-day basis whilst also looking ahead for future challenges that may affect the delivery of End Point Assessment. The new structure of EPA team will play a major part in this and reviews of the Policies and processes, and sampling of completed assessments will become a key feature moving forward to ensure we remain compliant. ## _**Conferences & Events**_ The Society will continue to develop the hybrid event offering to increase the quality and reach of events to better meet the needs of the Society membership, the broader aviation and aerospace community and public. In 2022, the Society will organise the 28th AIAA/CEAS Aeroacoustics Conference which is currently planned to take place in Southampton. The Society will focus on delivering this and four other major conferences to attract larger audiences and more sponsorship with the aim to generate a more reliable and robust income stream and to provide the latest, cutting-edge content and learned output for the membership and beyond. The public lecture programme and Specialist Group Events will continue to be delivered but with less reliance on these for income generation. Specialist Group events will be delivered for the most part by the Group members directly. ## _**Governance**_ In 2022 the Society will undertake a Governance Review to ensure best practice that meets future needs. The Trustees have requested that there be a consultation throughout the Society on the proposals developed. ## _**National Aerospace Library (NAL)**_ A new library catalogue will be rolled out including a new portal that will enable users to access digital copies of an increasing number of RAeS publications, including conference proceedings, gems from the RAeS archive such as letters from the Wright brothers, items from photographic collections and will also bring together details of the RAeS library, e-library, archive, and photographic collections all under an easyto-use platform. ## _**Policy & Public Affairs**_ The Society intends to continue providing input to consultations and inquiries where value can be added, and in early 2022 expects to respond to the House of Commons Science and Technology Committee’s inquiry into diversity in STEM. The Team will also build on the parliamentary outreach by proactively engaging with key government stakeholders. ## _**Publications and Communications**_ In the coming year _AEROSPACE_ will be looking to boost its advertising potential with a new partnership with an external advertising agency in the form of Think Publishing and a strengthening of links and synergy with the sister _AEROSPACE_ Insight blog and the print magazine. With Covid-19 travel restrictions easing, the team expect to return to fully covering UK and international aerospace exhibitions, trade shows and media visits. _The Aeronautical Journal_ will celebrate its 125th anniversary during 2022 with a special commemorative edition. The showpiece issue will include contributions from key figures at NASA, Delft, Loughborough University, Boeing, Cranfield, Georgia Tech, the University of Manchester and Professor Gareth Padfield’s last completed research paper. Another ISABE special issue featuring papers from the 25th Conference of the International Society for Air Breathing Engines is scheduled to be produced in August, with the 2021 European Rotorcraft Conference and the RAeS Aerodynamics Conference also being considered for special issues. An online collection will be produced celebrating the 75th anniversary of aerospace engineering at Bristol University. The Journal aims to concentrate on growing its online audience in the wake of ceasing its print version and increase revenue after shedding print and distribution costs. In 2022 the RAeS newsletter email products will be refined, improving processes for delivering Branch communications, launching a new internally focussed activity grid to ensure better visibility between teams **Page 24 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** and improve cross-team collaboration, and relaunching blog platforms with new branding. A new TikTok platform will be launched to access a whole new demographic with the provision of relevant content for that channel. ## _**External Associations and Bodies**_ In 2022 **,** and taking advantage of more online engagement opportunities, the Society will continue to actively work with the various international, national, and local associations and bodies to ensure the Society’s global presence is protected and strengthened including International Council of the Aeronautical Sciences (ICAS) and Council of European Aerospace Societies (CEAS), the American Institute of Aeronautics and Astronautics (AIAA). ## _**Operations**_ In 2022, the Society will continue to develop its internal IT systems (Dynamics 365 CRM database) and assess the functionality and design of the RAeS website for a future upgrade project. IT licences and tools will be rolled out to key volunteers across the Society’s network to improve Committee members’ ability to perform their roles and facilitate communication, collaboration, and delivery of activities to benefit members. Investment into hybrid meeting facilities, digital signage and ongoing refurbishment of No.4 Hamilton Place is planned for 2022, subject to constraints of the Covid pandemic. ## _**Membership Services**_ In 2022 the Society aims to continue to provide a range of opportunities for initial and continuing professional development and accreditation to support the maintenance of competence, up-skilling, and professional practice of our membership. With the implementation of a mentoring match platform, available to members, both for general career guidance and specifically for Engineering Council Professional Registration, will further support and facilitate the development of aviation and aerospace professionals. In December 2021, the Privy Council Office approved changes to the By-laws, which revised the thresholds for membership grades to a competency based approach. The Society look forward to impeding the changes into our processes and development of guidance materials for prospective and upgrading members. ## _**Royal Aeronautical Society Foundation**_ The Society will continue to promote the RAeS Foundation as the primary vehicle for fundraising to support the Society’s long-term charitable objectives. In 2022 the RAeS Foundation will continue to support the Society’s charitable objectives of the Society. ## _**Financial Targets**_ In 2018 the Finance Committee put in place a Finance Strategy for the period 2018-2022 with the aim on reducing its two major liabilities, the Mortgage on No.4 Hamilton Place and the Society’s Defined Benefit Pension Scheme (closed). However, due to the events of 2021 the Finance Committee’s focus in 2021 was to rebuild the Society’s reserves to ensure finishing the year in a stronger and more stable position which enables the Society to refocus on reducing the major liabilities in future years. The Finance Committee will be working on the future Finance Strategy for 2023-2027 in 2022. ## **Structure, Governance and Management** The Society is a Learned Society holding a Royal Charter and is established as a Charity under terms issued by the Charity Commission. The Charter of Incorporation and the By-Laws form the code that governs the Society. The Society is run by the Board of Trustees which is the governing body of the Society and establishes and reviews the policies, strategy and business plan of the Society ensuring that the Objects of the Society, its administration, and management of its finances (including its assets and investment portfolio) and property are upheld in compliance with the Society’s Royal Charter and By-Laws and the law. The Board of Trustees may delegate to any Board or Committee such powers and duties as it sees fit and the law and good practice for charities allows, but the Board of Trustees remains responsible for the actions of such Boards and Committees and the Board of Trustees may dissolve a Board or Committee at any time. The current Boards of the Board of Trustees are: The Learned Society Board (LSB), The Membership Services Board (MSB), and The Professional Standards Board (PSB). The Board of Trustees **Page 25 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** has delegated the responsibility to the Finance Committee for directing the Society finances and developing sound financial practices and policies which protect and enhance the Society’s finances and assets; the Finance Committee reports quarterly to the Board of Trustees. The Audit Committee supports the Board of Trustees in monitoring the adequacy of the Society’s governance, risk management and control processes through offering objective advice on issues concerning the risk, control and governance of the Society and associated assurances provided by internal audit and other processes. Board Chairs shall be elected by the Board of Trustees from the elected members of Council by secret ballot for a term of three years and are eligible for re-election. Board Chairs so elected shall continue to be members of Council for the term for which they were elected to Council. Members of the Council are elected, usually for a three-year term, by the voting members of the Society. The election takes place annually and the results are announced at the Society’s Annual General Meeting (in May each year). The President is elected from within the Council approximately 18 months before taking office (from the AGM). Presidents serve a term of one year only. In the 12 months prior to taking office the President serves as President-Elect of the Society and in the 12 months after their one-year term the President serves as the immediate Past President of the Society. The President, President-Elect and Past President are _ex officio_ members of the Council and Board of Trustees. In 2020 the Society’s AGM was ‘frustrated’ due to the COVID-19 lockdown and therefore the Presidential hand-over did not take place; this was an exceptional circumstance which was communicated to the Society’s membership. The Society’s Council elections continued without interruption. The Society encourages all Trustees to attend training courses relating to their role and responsibilities as Trustees and a Trustee Training log is maintained. The Trustees consider the Board of Trustees and the Chief Executive as comprising the key management personnel of the Society in charge of directing and controlling the Society. The day-to-day management of the Society is delegated to the Chief Executive who is responsible for all operational matters including the implementation of the Strategic Review; the CE is supported by the Executive Team which comprises of two operational directors covering Knowledge (including, Community Engagement, Events, Knowledge and Information and IT), and Membership and Professional Standards. The Chief Executive consults closely with the Chair of the Board of Trustees and the President over issues of significance and ensures that the HQ staff are managed effectively. All Trustees give of their time freely and no Trustee remuneration was paid in the year. Details of Trustee expenses and related party transactions are disclosed in note 4 to the accounts. Trustees are required to disclose all relevant interests and register them with the Chief Executive and in accordance with the Society’s policy withdraw from decisions where a conflict of interest arises. The pay of the Society’s Chief Executive is reviewed annually and normally increased in accordance with average earnings. When the Chief Executive is appointed, the remuneration is bench-marked with other membership and professional bodies of a similar size and activity to ensure that the remuneration set is fair and not out of line with that generally paid for similar roles. The pay of the Executive team is reviewed annually as part of the annual review of staff salaries and any increase is approved by the Chief Executive; when an Executive Team member is appointed the remuneration is bench-marked with other organisations similar in size and activity to the Society to ensure that the remuneration set is fair and not out of line with similar roles. The Boards and the Chief Executive prepare reports for each Trustee meeting. Each year the Chair of the Board of Trustees, together with the Board Chairs and the Chief Executive, prepare a Review of the Year, together with the Annual Report and Annual Accounts which are approved by the Trustees, and both documents are available to all members via the Society’s website. ## **Reference and Administrative Details** ## **Name/Registered charity number:** Royal Aeronautical Society 313708 **Page 26 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** ## **Subsidiary charities** : The Royal Aeronautical Society Awards Trust 1045004 Alan Snudden Memorial Trust Fund 1013530 ## **Registered Address:** No.4 Hamilton Place, London, W1J 7BQ, UK ## **The following were Trustees for all or part of 2021:** M Broadhurst OBE MA CDir FIoD FRAeS (Chair of the Board of Trustees) Howard Nye FRAeS (President) Air Cdre Peter Round FRAeS (President-Elect) Prof J Cooper CEng RPP FRAeS FAIAA (Past President) Lt Cdr R Gearing BEng(Hons) CEng FRAeS MCGI MCMI Dr A Wood EngD CEng FRAeS Andrew Cowdery FRAeS J Middleton MSc FCCA FRAeS Andy A Allen FRAeS S Moynihan BSc (Hons) FCA CRAeS ## **The following are in attendance at the meetings of the Board of Trustees:** Sir Brian Burridge KCB CBE FRAeS, Chief Executive ( _Retired October 2021_ ) D Edwards FRAeS, Chief Executive ( _Appointed September 2021_ ) S Ogeer, Head of Governance & Compliance ( _Resigned October 2021_ ) N Dingley, Head of Governance & Compliance ( _Contract Cover August 2021 to November 2021_ ) L Price, Head of Governance & Compliance ( _Appointed November 2021_ ) P Slomski, Honorary Solicitor (By invitation) ## **Directors of Aeronautical Trusts Limited:** Sir Brian Burridge KCB CBE FRAeS ( _Resigned October 2021_ ) D Edwards FRAeS, Chief Executive ( _Appointed October 2021_ ) S Moynihan BSc (Hons) FCA CRAeS ## **Executive Team:** Sir Brian Burridge KCB CBE FRAeS, Chief Executive ( _Retired October 2021_ ) D Edwards FRAeS, Chief Executive ( _Appointed September 2021_ ) T Homes, Finance Director ( _Left May 2021_ ) E Bossom, Director, Knowledge and Networks P Mensah, Director of Membership and Professional Standards ## **Advisors** ## **Auditors:** Haysmacintyre LLP, 10 Queen Street Place, London EC4R 1AG, UK ## **Bankers:** HSBC Bank plc, West End Corporate Centre, 4th Floor, 133 Regent Street, London, W1B 4HX, UK ## **Investment Managers:** JM Finn & Co, 4 Coleman Street, London EC2R 5TA, UK **Page 27 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** ## **Reference and Administrative Details (continued)** ## **Pension Advisors:** ## _**GPP Scheme**_ Kerr Henderson (Financial Services) Ltd, 29-32 College Gardens, Belfast BT9 6BT, UK ## _**Defined Pension Scheme (Closed)**_ Deloitte Total Reward and Benefits Limited, 27-45 Great Victoria Street, Belfast BT2 7SL, UK ## **Solicitors:** Clyde & Co, 51 Eastcheap, London EC3M 1JP, UK. **Page 28 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** ## **Statement of the responsibilities of the Board of Trustees** The law applicable to charities in England and Wales requires the Board of Trustees to prepare financial statements for each financial year which give a true and fair view of the of the charity and group and of the financial activities of the group for that period. In preparing those financial statements the Board of Trustees is required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements; and - prepare the financial statements on a going concern basis unless it is inappropriate to presume that the group will continue in operation. The Board of Trustees is responsible for keeping accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable the Board of Trustees to ensure that the financial statements comply with applicable law. The Board of Trustees is also responsible for safeguarding the assets of the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. For the purpose of this statement the group comprises the Royal Aeronautical Society and subsidiary charities and companies as outlined in Note 17 within the notes accompanying the Financial Statements. ## _**Website**_ Financial statements are published on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the charity’s website is the responsibility of the Board of Trustees. The Board of Trustee’s responsibility also extends to the on-going integrity of the financial statements contained therein. ## _**Financial statements**_ These financial statements reflect the requirements of the Statement of Recommended Practice: Accounting by Charities. The financial statements comply with the statutory requirements and the Society’s Charter and By-Laws. ## Martin Broadhurst Signed........................................................... Martin Broadhurst (Mar 10, 2022 09:38 GMT) M Broadhurst OBE MA CDir FIoD FRAeS **Chair of the Board of Trustees** Date: 7 March 2022 **Page 29 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** ## **REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE ROYAL AERONAUTICAL SOCIETY (Incorporated by Royal Charter 1949)** ## **Opinion** We have audited the financial statements of the Royal Aeronautical Society for the year ended 31 December 2021 which comprise consolidated Statement of Financial Activities, the consolidated and society Balance Sheets, the consolidated Statement of Cash Flows 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 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 group’s and the parent society’s affairs as at 31 December 2021 and of the group’s net movement in funds 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 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. 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 Society 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 Society'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. ## **Other information** The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Report. 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** 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: - adequate accounting records have not been kept by the parent society, or returns adequate for our audit have not been received from branches not visited by us; or **Page 30 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** - sufficient accounting records have not been kept; or - the parent society 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 for the financial statements** As explained more fully in the trustees’ responsibilities statement (set out on page 29), 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 Society’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 Society or to cease operations, or have no realistic alternative but to do so. ## **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: Based on our understanding of the Society and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to regulations related to regulatory requirements for the Charities Act 2011 and the Society’s Royal Charter, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011, income tax, payroll tax and sales tax.. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimate and application of controls around authorisation of expenditure and payments. Audit procedures performed by the engagement team included: - Inspecting correspondence with regulators and tax authorities; - Discussions with management including consideration of known or suspected instances of noncompliance with laws and regulation and fraud; - Evaluating management’s controls designed to prevent and detect irregularities; - Identifying and testing journals, in particular journal entries posted by management with unusual descriptions and those around the year end; and - - Challenging assumptions and judgements made by management in their critical accounting estimates. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. ## **Use of our report** This report is made solely to the Society’s trustees, 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 Society's trustees those matters we are required to state to them **Page 31 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** 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 Society’s trustees as a body for our audit work, for this report, or for the opinions we have formed. Haysmacintyre LLP 10 Queen Street Place Statutory Auditors London Date: EC4R 1AG 10 March 2022 Haysmacintyre LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 **Page 32 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** ## **Consolidated Statement of Financial Activities (SOFA)** All amounts relate to continuing activities. The notes 1 to 19 form part of these financial statements. **Page 33 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** ## **Consolidated Balance Sheet** The notes 1 to 18 form part of these financial statements. These financial statements were approved and authorised for issue on behalf of the Trustees of the Royal Aeronautical Society on 7 March 2022. ## Martin Broadhurst Martin Broadhurst (Mar 10, 2022 09:38 GMT) M Broadhurst OBE MA CDir FIoD FRAeS **Chair of the Board of Trustees** S Moynihan BSc (Hons) FCA CRAeS **Trustee** Sarah Moynihan Sarah Moynihan (Mar 10, 2022 10:21 GMT) **Page 34 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** ## **Charity Balance Sheet** The notes 1 to 18 form part of these financial statements. These financial statements were approved and authorised for issue on behalf of the Trustees of the Royal Aeronautical Society on 7 March 2022. ## Martin Broadhurst Martin Broadhurst (Mar 10, 2022 09:38 GMT) M Broadhurst OBE MA CDir FIoD FRAeS **Chair of the Board of Trustees** Sarah Moynihan Sarah Moynihan (Mar 10, 2022 10:21 GMT) S Moynihan BSc (Hons) FCA CRAeS **Trustee** **Page 35 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** ## **Consolidated Cash Flow Statement** Cash and cash equivalent are defined as bank accounts and short-term deposits which are ready convertible into cash. **Page 36 of 57** ROYAL AERONAUTICAL SOCIErY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021 Analy$ls of changes In net debt 1 January 2021 Cash Flows Other Non- Cash changes 31 December 2021 Cash and cash equlvalents Cash and cash equivalents 1.898,047 581.964 2.480.011 1.898.047 581.964 2.480.011 Jrro*ings Debt due wthin one year Debt due after one year 148.4611 11,542,079) 48.461 166,0371 66,037 {S6.0371 11.476.042) 11.590.540) 48.461 11.542.0791 307,507 630,425 937,932 Pag8 37 of 57 **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** ## **Notes to the Financial Statements** ## **1. Accounting policies, judgements, and key sources of estimation uncertainty** - a) The financial statements have been prepared in accordance with Accounting and Reporting by Charities: 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) (second edition effective 1 January 2019) - (Charities SORP (FRS 102)) and with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The Society meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). A going concern basis has been adopted in the preparation of the financial statements. Taking into account the reserves position of the Society and the anticipated future results the Trustees do not consider that the appropriateness of this basis is subject to any material uncertainty. - b) The consolidated accounts include the activities, assets and liabilities of the Society, its subsidiary companies, and subsidiary charities. Further information on the subsidiaries is disclosed in note 16. - c) Income is generally recognised when the charity has entitlement to the funds, any performance conditions attached to the items of income have been met, it is probable that the income will be received, and the amount can be measured reliably. Donations and subscriptions for the Corporate Partners Scheme are recognised on receipt as anticipated funds are not enforceable debts. Where income is received net of tax, any taxation recoverable is taken to income on receipt of the net amount. - d) 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. Direct expenditure is allocated to categories of activity. Where expenditure cannot be directly allocated it represents support costs and is apportioned on a basis consistent with the use of resources, by reference to the number of staff working on each activity. Governance costs which are the statutory and organisational costs of operating the Society as a legal entity are included in support costs and apportioned consistently. - e) Quoted investments being a form of basic financial instrument are initially recognised at their transaction value and subsequently measured at their fair value at the balance sheet date using the closing market price. Realised and unrealised gains on investments shown in the SOFA are taken to the fund for which the investments are held. - f) Capital Expenditure - All purchases costing over £500 in total which are to be used for a period of more than one year are capitalized. Heritage assets are held at valuation and not depreciated. - g) Depreciation is provided on the following basis: - Freehold premises – Not depreciated - Fixtures and Equipment including computers - Over the estimated useful life of the asset which varies between two and ten years. - h) Stock is charged in full to the SOFA when purchased. **Page 38 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** - i) The Society only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. - j) Restricted income funds represent income subject to donor specified restrictions and the income arising on endowment funds for which specific uses have been specified. Expenditure for the specified purposes is set against the relevant income in the statement of financial activities. Unexpended balances are carried forward as restricted income funds or where the terms of the endowment provide for this, transferred to the capital balance of the endowment fund. Unrestricted and Designated funds represent amounts set aside by the Trustees as detailed within the reserves policy on page 18. - k) All employees of the Society may join the Group Personal Pension Scheme with Aegon (formerly Standard Life). The Society contributes according to a scale of contributions recommended by our Pensions Advisors, this scale being broadly designed to reproduce the scale of pensions they would have received on the basis of the old defined benefits scheme. The assets of the Group Personal Pension Scheme are paid into the Staff Member’s individual accounts with the Aegon and all aspects are their own responsibility, although the Society provides free individual advice each year to the members from qualified professional advisors. The costs of the GPP are charged to the Statement of Financial Activities as they fall due. In addition, there is a frozen defined benefit scheme to which the Society continues to contribute in order to fund past service costs. The net liability of the scheme is accounted for on the balance sheet in accordance with FRS 102 being the fair value of the scheme assets less the present value of the scheme liabilities. Fuller details are provided in note 18 and these include details of the actuarial assumptions adopted. In the opinion of the Trustees, these assumptions represent the only material areas of estimation uncertainty in the financial statements. - l) Freehold premises are held at the historic valuation of the leasehold originally acquired by the Society plus the additional cost of the subsequent purchase of the freehold. **Page 39 of 57** ROYAL AERONAUTICAL SOCIErY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021 2. Analysls of Income Income: 2021 Unie5ttTrcted Restrictgd Endowtnenls Deswnate FuTrd5 Funds {Subs￿lary (Subsid￿ry Charitiesl Branchesl Funds Funds Total 2021 Income from [wat￿n$ & Legacles Voluntary income & donab.ons 62,868 48.100 47.990 158,95B 62,868 48,100 47,990 158,958 I￿￿e from Charrtable Actr4Tit￿s Education, S￿lIs and Diversity Conferences. events, seminars End Point Assessment 23,523 210,816 507,710 7,399 2.952,683 127,059 23,523 210,816 50T,710 7,399 2,952,683 127,059 Library IN￿> Membership Se￿CeS Publications and Inlorrnatson Policy & Researth 3,829,190 3,829,190 Incorne from Other Trading Actr4Tths Room hire semces 236,275 236275 236275 236275 I￿VestMent Inc¢xne Investment Income TT.975 TT,975 81.266 81266 159241 159241 4,20fj,308 129,366 47,990 4,383,664 Income: 2020 Unreslricted Restricted Endowments Desionated Total 2020 Funds FuNd5 ISubsidkAry ISubsTrdiary chants.esl Branchesl Fundj Funds Incorne from Donations & Legacies Voluntary Income & donalons 6,442 6,442 64,845 64,845 59,663 59,663 130,950 130,950 Income from Chariiable Aciiwtses Educats"on. S￿lIs and Diveisrty Conference5. events. seminars 12.593 12,593 161.951 161,951 End PointA55essment 335.589 335,589 Library INALI Membership serwice5 17.590 17,590 3.023.941 3,023,941 Publicats'ons and inforrnation 126.111 126,111 Policy & Reseaith 2.352 2,352 3,680,127 3,680,127 Incomè from OlherTradlno Actr Room hire semces 244 581 244,581 244,581 Investment Income Investrnent Income 92.125 92,125 89,516 89,516 181,641 181,641 Total 75 37 99 In 2020 the Soaety recewed £114.159 in grants frorn the Govemmentto supportfvrtoughed employees and has been allocated to the relevent acbvrty Pag8 40 of 57 **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** ## **3. Employee information** The average numbers of staff employed during the year was 37/35.4 FTE (2020: 48/44.2 FTE). Employees receiving emoluments in excess of £60,000 (excluding pension contributions) fall within the following bands: The key management personnel of the Society comprises the Board of Trustees and the Executive Team as listed on page 27. The total amount of employee benefits (including employer pension contributions) received by the Executive Team (comprising the CE and three Directors) for their services to the Society was £378,655 (2020: £486,309). Aggregate termination payments for the year were £12,105 (2020: £53,274). Trustees and Volunteers do not receive remuneration for their services. During the year the President was reimbursed £593 (2020: £1,808) and 1 (2020: 3) other Trustees was reimbursed £265 (2020: £1,507) in respect of expenses incurred in performance of their duties. In accordance with normal commercial practice the Society has purchased insurance to protect trustees and officers from claims arising from negligent acts, errors or omissions occurring whilst on Society business. The insurance provides cover up to £5,000,000 on any one claim and the cost for 2021 was £3,432 (2020: £3,929). ## **4. Related party transactions** There were no related party transactions in 2021 (2020: Nil). A number of Trustees hold senior positions in organisations in the aerospace industry which from time to time transact with the Society, the Trustees have no direct involvement with these transitions. **Page 41 of 57** ROYAL AERONAUTICAL SOCIErY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021 5. Analysls of expendllure Expenditure.. 2021 Direct Costs Support Costs Totsl Grant Fundlng of Activities Bratbch At￿vIty Totsl 2021 Roising Fund¥'. Fund Raising Room Hire SeNces Admin seNtes 15.145 31,898 35.493 ).638 31,898 5.108 17,545 105.189 ).638 31.89B 5.10B 32,582 120.226 5.108 3.154 43,755 Irwestment management costs 14.391 61A34 15037 15.037 Charitable Activities.. Careers & &ducation 155.145 206.108 251.3S4 190,470 643.755 532.189 147.6 2.126.695 109.149 214.682 179.542 66.672 510.412 153.091 81.334 1,315,488 51.131 316,025 420.790 430.906 257.142 1.197.188 685,286 228.99 3.536.335 ConferentÈs 420.790 430.906 257.142 1.154.167 685,286 228.998 3.442.183 End Point Assessment NAL (Libraryl Membèrship semees Publications & Information Policy & Research 43.021 51.131 43,021 2.188.129 1,359,243 3.547.372 66.168 43,021 3.656.561 Within Career5 & Education a total of £10.453 wa5 paid to indrwiduals12020 £74.2241 ¢o¥Èring 30 9rants Ènd PTizes12020.. 611. Grants are ￿ld when apwo¥ed and accrued from th& time of apwoval Expenditure.. 202 Direct Co Support Total Giant Funding of Actl¥liles Btanch Activity Total 2020 Raising Funds.. Fund Raising Room Hire SeNtes 10.384 169.351 59,078 69,462 169,351 973 69,462 169.351 913 Admin seNces 973 Investment management costs 12 624 192.359 4.929 64,￿0 17,553 257,339 13.338 13,338 30.891 270.677 Charitoble Activiti￿.. Careers & education 152.960 133.480 286,440 304.941 667,539 217.236 335,114 91.062 359,570 712.173 1AB1,881 191.561 698,420 76.502 201,113 1.726,955 4.030,671 39.981 326.421 667.539 335,714 359.570 1.530.000 698,420 201.113 4,118.777 Conferènees 362.598 End Point Assessm&nt 118.418 NAL (Library) MernbÈrship SÈMCÈS Publications & infomialion 268.508 769.708 48.119 506.859 Policy & Research 124.611 2,303.7 39,￿1 48.119 2.496,081 1.791,935 4288,016 53,319 48.119 4.389.454 Within Careers & Educ*ion a total of£74.224 was p3id to indMduals12019 £65.2521 covering 61gratrt5 and prize512019.. 481. Grants are ￿ld approved and accTu8d frorn the time of approval Pag8 42 of 57 **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** ## **6. Analysis of support costs** The Society initially identifies the costs of its main activities and then identifies those costs which relate to the governance function. Having identified its governance costs, the remaining support costs together with the governance costs are apportioned between the key activities undertaken by the Society in the year. Refer to the table below for the basis for apportionment and the analysis of support and governance costs. Direct expenditure is allocated to categories of activity. Where expenditure cannot be directly allocated it represents support costs and is apportioned on a basis consistent with the use of resources, by reference to the number of staff working on each activity (IT and Premises) and staff time (Management, Finance, HR, and Governance). **Page 43 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** ## **6. Analysis of support costs (continued)** Governance costs are now included in support costs and reallocated across all activities; they include costs for a Governance Manager, expenses associated with Council meetings, Council elections, maintaining the Society’s constitution, external audit, and core executive management, plus costs for travel for the President. ## **7. Fixed Assets – Group and Charity** The Trustees confirm that there has been no impairment to the property and it is worth no less than the value in the accounts. The Society's bankers, HSBC, have taken out a charge (not exceeding £4,255,000) on No.4 Hamilton Place to act as security against their loan. The Trustees of the Society's Defined Benefit Pension Scheme (closed) have taken out a second charge on No.4 Hamilton Place to cover the Society's obligations in the event that the Society defaults on its payments to the scheme; in return the Society has received reduced contributions to the Scheme in future years. **Page 44 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** ## **7. Fixed Assets – Group and Charity (continued)** Of the above £8,455,911 (2020: £8,555,286) represents assets held for the Society's use. Functional Assets are also used by Aeronautical Trading Limited and this is reflected in their normal management charge. The heritage assets of £410,843 (2020: £410,843) represent pictures, books and other items of Aeronautical interest held by the Society for which there are no readily identifiable market values. The Trustees have concluded a valuation which they consider appropriate. A number of items are on display at the NAL (Farnborough) and a large number of historical papers have been digitised and can be viewed on the Society's Website. ## **8. Investments – Group** The Finance Committee (on behalf of the Trustees) review the Society's investments with JM Finn & Co (investment advisors) on a quarterly basis; in 2021 there were minor changes to the asset allocation to reflect the ongoing changes within the markets. Dividend income in the statement of financial activities arise from the above holdings which are all listed on the London Stock Exchange. **Page 45 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** ## **9. Debtors** ## **10. Creditors** Loan on Property: In March 2009 the Society purchased the freehold of No.4 Hamilton Place (Society's HQ) at a cost of £4,859,755; at the end of 2021 the of the outstanding loan was £1,542,079 (2020: £1,590,540). **Page 46 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** ## **11. Endowment funds** The following reserves are held in accordance with the reserves policy set out on page 21 of this report. ## **12. Restricted income funds** The following reserves are held in accordance with the reserves policy set out on page 20 of this report. **Page 47 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** ## **12. Restricted income funds (continued)** ## **13. Unrestricted reserve funds** The following reserves are held in accordance with the reserves policy set out on pages 18 to 20 of this report. The Free reserve represents the surplus on funds available for future general activities after allowances for the reserves specified in the policy. **Page 48 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** ## **13. Unrestricted reserve funds (continued)** ## **14. Subsidiary branches funds** **Page 49 of 57** ROYAL AERONAUTICAL SOCIErY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021 15. Analysls ol funds Funds: 2021 Unrestrrcted Restricted Funds Funds Endowed Funds Total Fund balances at 31 Decernber 2021 are reDresented bv.. Fvxe(J assets 8.866,754 8.866.754 Investments 2.101.406 509.114 1.686.477 4.296.997 Current assets 2.794,269 301.835 (73.805) 3.022,299 Cuirent Liabilikn-es 11,455,1141 15,0001 (1,460,114) Total Fullds Excluding Pension Lialx'lity and Non£urtent liabilities 12.307,J1 S 805,949 1,612.672 14,725.936 Long Term Liabilities {1.540,0401 (1.540.040) Deffined Benefit Pension Scheme Liability 1858.3331 1858.333 ToLIl Funds 9,908,942 805,949 1,612,672 12,327,563 Funds: 2020 Unrèstricted Restricted Funds Funds Endowed Funds Total Fund balaNce5 at 31 Decernber 2020 are reDresented bv.. Fixed 3ssets 8.968.129 8.968.129 Investments 1.885.409 456.784 1.513.130 3.855.323 Current assets 2.373,555 275.210 139.649) 2.609.116 Current Liabilith-es (1.615.193> 19,5001 (1,624.693) Total Funds Excluding Pensbon LOabOIOty 11.611.900 722,494 1,473.481 13,807.875 Long Term Liatlililies {1,608,1381 (1,608.138) Deffine(J Benefit Pension Scheme Liability {1.686.3331 (1,686.333) Total Funds .317829 722,494 1,473881 10,513804 Pag8 50 of 57 **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** ## **16. Subsidiary charities and companies** Accounts for the Society only have been presented as the amounts relating to subsidiary entities are clearly distinguished throughout, being those amounts shown as “Endowments - subsidiary charities” or “Aeronautical Trading Ltd”. No separate income and expenditure account are presented as the movements in endowment funds are not material. The subsidiary charities are: **Registration Number Registered in** The Royal Aeronautical Society Awards Trust 1045004 England and Wales Alan Snudden Memorial Trust Fund 1013530 England and Wales The CAARC fund, which is shown as a distinct fund from the other funds of The Royal Aeronautical Society Awards Trust in these accounts is a specified fund administered within that charity. The subsidiary companies are: |The subsidiary companies are:|||| |---|---|---|---| ||**Percentage of Net Assets**||**Registered in**| ||**shares held**|**£**|| |Aeronautical Trusts Limited|100%|1|England and Wales| |Aeronautical Trading Limited|100%|2|England and Wales| Aeronautical Trusts Limited is the corporate trustee of the subsidiary charities set out above. Aeronautical Trading Limited is the only trading company and its results, assets and liabilities are included in the consolidated accounts. Its results and financial position are summarised below: **Page 51 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** ## **17. Consolidated Statement of Activities 2020** The following Consolidated Statement of Financial Activities for the year ending 31 December 2020: ## **18. Defined Benefit Pension Scheme (now frozen)** The valuation used for FRS102 disclosures has been based on the most recent actuarial valuation as at 1 April 2019 and updated by the Actuary to take account of the requirements of FRS102 in order to assess the liabilities of the scheme at 31 December 2021. Scheme assets are stated at their market value at 31 December 2021. The most recent valuation on a discontinued basis was at 1 April 2019 which showed that the scheme’s assets fully covered its priority liabilities and 68% of the remaining liabilities on that date; the actuarial valuation shows a deficit of £1,294k (2016: £1,115k). The following notes comprise the full disclosures as set out in FRS102. **Page 52 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** ## **18. Defined Benefit Pension Scheme (now frozen) (continued)** **Page 53 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** ## **18. Defined Benefit Pension Scheme (now frozen) (continued)** **Page 54 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** ## **18. Defined Benefit Pension Scheme (now frozen) (continued)** **Page 55 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** ## **18. Defined Benefit Pension Scheme (now frozen) (continued)** **Page 56 of 57** **ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2021** ## **18. Defined Benefit Pension Scheme (now frozen) (continued)** **Page 57 of 57**