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2022-12-31-accounts

Foreword from the Chair ofthe Board of Trustees Pages 3 &.4
Trustees, Officers and Advisors,
Reference and Administrative		 Information Page S
Financial Statements
Declaration,
Governance,
Management		 and Risk Pages 6&7
Group Structure,
Governance
Code and Charitable		 Objects Page 8&9
The Wider RAF Family and the Club's Vision Mission and Values Page 9
The Club Strategy and Plans for the Future Page 10
Environmental
Strategy and Fundraising
Strategy		 Page 11
Club Committees Pages 12to 14
Contribution
by Club Volunteers		 Page 14
Staff Engagement,
Staff Awards and Staff Visits to		 RAF Stations Page 15
Financial
Review		 Pages 16to 18
Capital Improvements
to the Club House and The		 Club as a Going Concern Page 18
Key Management
Personnel &Remuneration,
The
Investment
Policy		 Reserves Policy &the Page 19
Accounting
and Reporting
Responsibilities		 Pages 20 &21
Independent
Auditors'
Report		 Pages 22 to 25
The Statutory
Financial Statements		 Pages 26to 29
Notes to the Financial Statements Pages 30to 40

Cyber security Cyber security breach breach Multi-layered
specialist cyber-security
application
software
and
firewalls are installed
throughout
the Club's
ITsystems.
Regular
monitoring
from the Club's
IT Management
contractor and the
Club's Systems & ITWorking
Group. Contract with the Cyber
Security Information
Sharing
Partnership
to keep up to date with
cyber security issues. Regular penetration
tests by independent
third parties and robust Ransomware
procedures
in place.
S ecialist insurance
cover in
lace.
Loss ofSenior Management Benchmarking
of remuneration
packages and formal annual
Staff resulting in an adverse compensation
reviews to ensure the Club is competitive
in the
impact on service and market.
Formal appraisal
system and continuous
review ofstaff
functionality. and employee
welfare standards.
Offering flexible working
opportunities,
where appropriate,
and training
and educational
su
ort to boost
rofessional
standards.
Weak control of income and Policy on Internal
Financial
Controls and delegated
Authorities
expenditure. annually
reviewed
by Finance, Audit & Risk Committee
and Board
ofTrustees. Budgetary
control system
with monthly
monitoring		 of
management
accounts and variance analysis.
Dashboard
reports
for key activity indicators.
A newly created
Internal
Audit Team
staffed b
Member Volunteers.
Weak Control ofcapital House Committee
produces a 5 to 10-year "Rolling Programme"
expenditure
and impact on		 of planned
preventative
maintenance
and new investment
cash flow Projects.
A formal
system ofcapital investment
appraisal
and
tendering
policy exists and a project management
review system
is in
lace.
The negative impact of Constant
monitoring
ofsupplier
input prices against market,
volatile inflationary pressures maximising
discounts
from bulk purchasing,
exploiting
lower
prices for seasonal
products,
evaluation
of long-term
fixed price
contracts,
maintaining
strong
relationships
with key suppliers
to
maximise
lo alt
discounts,
rom
t
a ment of su
liers.
Escalation of the Ukrainian Flexible business
planning
models and demonstrable
ability to
war resulting in a significant adjust rapidly business
plans and operations
commensurate
with
drop in demand and further changed
circumstances.
su
I -side		 ressures
Computer
system failures or		 The recent migration
to cloud-based
applications
provides
extra
loss/corruption of data. resilience coupled
with daily external
backup procedures,
backup
power supply,
and a regularly
updated
Crisis Management
Plan.
Business interru
tion and other s ecialist
IT insurance.
Significant
loss		 of Club Fire/security
prevention
measures.
H&S Regulation
adherence.
facilities through fire or Crisis Management
plan. Business Interruption
Insurance.
Fire risk
similar disaster. assessment,
Ansul fire suppression
system
The negative impact of Interest rate swap currently
provides protection.
Interest rate
adverse interest rate cover is built into the annual
budget.
movements
Terrorist activity Appropriate
security measures
based on professional
advice
(House Committee
experts,
civil and service police). Disrupting
hostile recon. Insurance
Cover significantly
reduces monetary
impact ofattack, Business Continuity
Plan
in place to enable
recovery, 3 security staff for vetting
visitors, applying
opaque
film
to front ent
doors and installin
additional
CCTV.

To be the London To be the London Club ofchoice for serving ofchoice for serving ofchoice for serving and To provide
high-quality
and affordable
facilities		 To provide
high-quality
and affordable
facilities		 To provide
high-quality
and affordable
facilities
retired
RAF		 Officers, their families and other and
services
in		 Central
London		 for
Club
Members Members,
in order		 to preserve,
promote
and
foster the traditions ofthe Ro al Air Force
Value, respect and support each other Give
personalised,		 warm
and		 consistently
exce tional service
Create positive, memorable experiences for every Care about and give back to our local community
Member

Data is required to inform decisions taken by the Trustees and Club management.
We		 Data is required to inform decisions taken by the Trustees and Club management.
We		 Data is required to inform decisions taken by the Trustees and Club management.
We		 will therefore will therefore will therefore
ather data;
To develop
a deeper
understanding
of the current
and
likely future
requirements		 of each
member
group
(serving, former serving,
families and other members),
because		 of the mix of
membership
types, the membership
age profile and the aspirations		 and expectations of the
current
Service officer cadre have a direct influence on usa e and the Club's ethos.
To monitor the balance between
membership
categories and set limits when necessary		 to align
with the Charitable
Ob ects.
To help
set the
balance
between
revenue,
quality
and
affordability,
and to		 ensure that
resources are
rioritised
with the Vision and Mission clearl
in mind.
We will develop
and maintain
an IT system that supports
appropriate
data		 capture to guide strategic
mana ement and the most efficient use ofthe Club's resources.
We will ensure that business,
security
and operational
risks are managed		 appropriately and within
the risk a
etite
arameters
set b
the Board.
We will work to im
rove the offer to members to:
Increase use ofthe Club b
all members.
Better attract existin
members
who serve or live awa
from London.
Promote the Club as the social venue ofchoice for servin
members		 based
in London.
Promote the benefits of Club membership
to newly commissioned		 and other non-member
servin
officers.
Increase the membershi
u take from former servin
officers.
The Club will be res
ectful of its herita
e whilst ensurin
it remains
relevant		 for the future
We will improve the condition of 128 Piccadilly and its facilities, including
measures
in support
ofthe Net Zero 2040 tar et, whenever
ossible.
We will provide
benefits and training
for staff such that the Club becomes recognised		 as an
em
lo erof choice.
We will provide
training
for Trustees
and managers
to improve
the		 governance and efficient
mana
ement ofthe Club.
We will develo
meanin
ful Ite
Performance
Indicators for Trustees		 and Executives.

Arts House Finance. Events Legacies, Membership Systems
Committee Committee Audit at Risk Committee Donations at Committee Working
Committee Fundraising Group
Committee
Wg Cdr Gp Capt Jo Fit Lt lan Melia Air Cdre Dai Air Cdre Wg Cdr James Fit Lt Haig
V James
Po nton		 Salter Whittingham Barbara
Coo
r		 Hig Tyler
'a
U		 Gp Capt Jim
Beldon		 Fit Lt Haig
Tyler		 Sqn Ldrlohn
Peters		 Gp Capt Al
Lockwood		 Wg Cdr Paula
Wigmot
V
Dr Michael Wg Cdr Neil Mr James Ms Naomi Fit Lt Mike Wg Cdr Louise Mr David
Fopp Cook Cagadine Miles Stubbs Clarke Alexander
Wg Cdr Fit Lt Gary Fit Lt Neeraj Sqn Ldr Stuart Fg OffJochim Sqn Ldr Steve Mr Bernard
Michael Hornby Kapur Quinn Wrang-Widen Potter Brown
Gilbert
Mrs Sue Sqn Ldr Mike Fit Lt Jennie Sqn Ldr Jo Rowe Miss Jocelyn
Hutchinson Sewefl Kingston D'Arcy
Air Cdre Mr Andrew Mr Joe
Rick Manning Hardstaff
Peacock-
Edwards
Mrs Mandy Mr Bernie
Shepherd Watson

Staff Awards
In 2022 we presented
the following		 awards:
Bnan Moore, Maintenrmce Supervisor
Front of House Star —2022 Ania Prorok, Receptionist
Heart of House Hero- 2022- Two winners Alex Jurascuk,
The Membersh'		 Cost Controller
Team
Casual ofthe Year - 2022 Jan Jan Dozina, Laundry
De~ ofthe Year - 2022- Two winners
Employee ofthe Year —2022 Harry Donnelly, Chef de Partie
Leader ofthe Year - 2022
Chief Executive Special Recognition - 2022 Svitlana
Fitkovska,
Housekeeping		 Assistant

Unrestricted Restricted Total Total
Funds Funds 2022 2021
Notes f f f f
)NCOME FROM:
Charitable
activities
Club income 9,861,537 9,861,537 6,166,072
Donations and legacies
Legacies 7,197 7,197 57,334
Restricted
Donations		 8,250 8,250 91,250
Donations
from appeals		 and Friends of
the Club 160,259 160,259 299,666
Government
grant income		 476,835
Other trading
activities
Trading activities 7a 145,186 145,186 58,394
Total income 10,174,179 8,250 10,182,429 7,149,551
EXPENDITURE ON:
Charitable
expenditure
Club operating
costs		 2 8,947,843 8,947,843 6,196,119
Fine arl 2 10,850 10,850 2,042
Donations
made		 2 10,239 10,239 8,000
Other trading activities
Trading
activities		 7a 112,951 112,951 22,744
Raising funds
Fundraising
costs		 2 43,128 43,128 15,574
Totalexpenditure 2 9,125,011 9,125,011 6,244,479
Net income/(expenditure) before investment
gains/(losses) 1,049,168 8,250 1,057,418 905,072
Net gain/(loss)
on investment		 of interest rate swap 157,084 157,084 130,505
Net income/(expenditure) 1,206,252 8,250 1,214,502 1,035,577
Transfers between funds 12 62,601 (62,601)
Balance brought
forward		 7,733,264 61,829 7,795,093 6,759,516
Balance carried forward f9,002,117 f7,478 f9,009,595 f7,795,093

DECEMBER2 022
COMPANY NUMBER 05321353
(a company limited by guarantee)
2022 2021
Note E
FIXEDASSETS
Tangible assets 10,556,350 11,334,866
CURRENT ASSETS
Stocks 86,124 99,623
Debtors 682,827 316,918
Cash at bank and in hand 3,049,669 3,086,130
3,818,620 3,502,671
CREDITORS: amounts falling
due within one year 10 (1,586,234) (1,738,391)
NET CURRENT ASSETS 2,232,386 1,764,280
CREDITORS: amounts falling
due after more than one year (3,779,141) (5,304,053)
NET ASSETS 69,009,595 67,795,093
FUNDS
Unrestricted
funds
—Designated
funds		 12 9,002,117 7,733,264
—General fund 12
Restricted funds 12 7,478 61,829
69,009,595 67,795,093

ROYAL AIR FO
2022		 RCE CLUB CH ARITY STAT EMENT OF FINA NCIAL
POSITION AT 31in DECEMBER		 NCIAL
POSITION AT 31in DECEMBER
COMPANY NUMBER 05321353
(acompany limited by guarantee)
2022 2021
Note E E
FIXEDASSETS
Tangible assets 10,556,350 11,334,866
Investments 100 100
10,556,450 11,334,966
CURRENT ASSETS
Stocks 8 86,124 99,623
Debtors 9 740,417 380,130
Cash at bank and in hand 2,971,494 3,011,273
3,798,035 3,491,026
CREDITORS: Amounts falling due
within one year 10 (1,565,749) (1,726,846)
NET CURRENT ASSETS 2,232,286 1,764,180
CREDITORS:amounts falling
due after more than one year (3,779,141) (5,304,053)
NET ASSETS 69,009,595 E7,795,093
FUNDS
Unrestricted
funds
—Designated
funds		 12 9,002,117 7,733,264
—Genera)fund 12
Restricted funds 12 7,478 61,829
f9,009,595 67,795,093

2022 2021
E E
Cash provided
by operating		 activities 1,871,008 1,609,024
Cash flows from investing activities
Purchase oftangible
fixed assets		 (102,561) (29,421)
Cash used in investing
activities		 (102,561) (29,421)
Cash flows from financing activities
Loan repayments (1,804,908) (67,484)
Cash outflow from financing activities (1,804,988) (67,484)
(Decrease)/increase in cash and cash equivalents in the year (36,461) 1,512,119
Cash and cash equivalents at the beginning ofthe year 3,086,130 1,574,011
Total cash and cash equivalents at the end of the year f3,049,669 f3,086,130
ANALYSIS OF CHANGES IN NET DEBT At 1January Cash At 31 December
2022 Flows 2022
E E 6
Cash at bank and in hand 3,086,130 (36,461) 3,049,669
Bank loans due
&		 1 year (684,984) 280,076 (404,908)
Bank loans due
&		 1 year (5,304,053) 1,524,912 (3,779,141)
Net debt (f2,902,907) j1,768,527 (f1,134,380)
RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW
FROM OPERATING ACTIVITIES
2022 2021
E 6
Net movement
in funds		 1,214,502 1,035,577
Add back depreciation
charge		 881,078 911,651
Decrease/(increase) in stock 13,499 (33,067)
Increase in debtors (365,908) (139,074)
Increase/(decrease) in creditors 127,837 (166,063)
Net cash provided by operating activities jt,871,008 E1,609,024

2.
ANALY		 SIS O F TOTAL EXPENDITURE F TOTAL EXPENDITURE F TOTAL EXPENDITURE
Charitable expenditure 2022 2021
Club Fine art Donations Trading Raising Total Total
operating made activities funds
costs
6
Staffcosts 4,764,425 43,128 4,807,553 3,321,629
Depreciation 881,078 881,078 911,651
Repairs and
maintenance 346,181 346,181 204,236
House supplies 161,598 161,598 92,805
Fine art 10,850 10,850 2,042
Donations
made		 10,239 10,239 8,000
Trading activities 112,951 112,951 22,744
Bank interest 101,092 101,092 135,093
Support
and		 other
costs 2,614,326 2,614,326 1,527,888
Governance
costs		 79,143 79,143 18,391
8,947,843 10,850 10,239 112,951 43,128 9,125,011 66,244,479

YEAR ENDED 3 1"DECEMBER 2022 1"DECEMBER 2022 1"DECEMBER 2022 1"DECEMBER 2022 1"DECEMBER 2022 1"DECEMBER 2022 1"DECEMBER 2022
2.
ANALYSIS		 OF TOTAL EXPENDITURE (continued)
2021 Chaditable expenditure 2021 2020
Club Fine art Donations Trading Raising Total Total
operating made activities funds
costs
f f
Staffcosts 3,306,055 15,574 3,321,629 4,203,949
Depreciation 911,651 911,651 970,894
Repairs and maintenance 204,236 204,236 183,222
House supplies 92,805 92,805 60,857
Fine art 2,042 2,042 6,454
Donations made 8,000 8,000 1,112
Trading activities 22,744 22,744 28,128
Bank interest 135,093 135,093 133,924
Support and other costs 1,527,888 1,527,888 1,096,715
Governance
costs		 18,391 18,391 38,989
f6,196,119 f2,042 f8,000 f22,744 f15,574 f6,244479 f6,724,244
IL
NET EXPENDITURE
2022f 2021
f
The net expenditure is stated after charging:
Auditors'
remuneration		 —audit 24,675 20,400
Auditors'
remuneration		 —other services 1,100 1,050
Depreciation —on owned assets 881,078 911,651
4.
EMPLOYEES AND STAFF COSTS
2022 No. 2021 No.
The average number ofcontracts for Full Time and Part Time staff 118 95
Staffcosts were as follows:
Wages and salaries 4,017,303 2,833,459
Agency 161,288 72,768
Social security costs 371,718 261,717
Other pension costs 194,952 153,685
Termination
payments		 19,164
4,764,425 f3,321,629
The number ofstaff who fell within the following bands were:
f60,001 - f70,000
f70,001 —f80,000
f80,001 —f90,000
f90,001 - f100,000
f100,001 —f110,000
f130001 —f140,000

6.
TANGIBLE FIXEDASSET		 S
Freehold land
and buildings Function
and general Rooms and
improvements Bedrooms Equipment Total
GROUP AND CLUB E E 6 6
Cost
At 1stJanuary 2022 17,969,317 7,693,438 2,296,246 27,959,001
Additions 27,945 74,616 102,561
At 31stDecember 2022 17,997,262 7,693,438 2,370,862 28,061,562
Depreciation
At 1stJanuaiy 2022 7,874,985 7,185,387 1,563,763 16,624,135
Charge for the year 582,919 139,404 158,754 881,077
At 31stDecember 2022 8,457,904 7,324,791 1,722,517 17,505,212
Net book value
At 31stDecember 2022 69,539,358 6368,647 6648,345 610,556,350
At 31stDecember 2021 f10,094,332 6508,051 E732,483 f11,334,866

2022 2021
The Club's investment in the trading company was as follows:
RAFCTC Limited 100 100
TRADING ACTIVITIES 2022 2021
E
Profit and Loss Account
Turnover 145,186 58,394
Cost ofsales (36,695) (12,793)
Gross profit 108,491 45,601
Administration expenses (net of interest receivable) (76,256) (9,951)
Profit forthe financial year $32,235 635,650
Amount
payable		 under gift aid to the Club 632,235 635,650
Balance sheet
Net current assets 6100 6100
Share capital EI00 6100
STOCKS Group and Club
2022 2021
6
Goods for resale 686,124 699,623
DEBTORS:Amounts due within one year Group Club
2022 2021 2022 2021
f. E 6 6
Trade debtors 186,630 204,196 159,881 185,908
Other debtors 211,274 7,298 211,274 7,298
Amounts
owed by subsidiary
undertakings		 84,339 81,522
Prepayments
and accrued income		 137,185 105,424 137,185 105,402
Interest rate swap 147,738 147,738
6682,827 f316,918 6740,417 6380,130

YE AR ENDED 31"DEC AR ENDED 31"DEC EMBER 2022 EMBER 2022
10. CREDITORS: Amounts falling due Group Club
within one year 2022 2021 2022 2021
E E E E
Bankloans 404,908 684,904 404,908 684,904
Trade creditors 288,330 304,186 288,330 304,133
Other creditors 48,447 93,148 41,791 88,356
Amounts
owed to subsidiary		 undertakings
Other taxes and social secudty 552,700 381,474 539,971 375,824
Accruals and deferred income 291,849 265,333 290,749 264,283
Interest rate swap 9,346 9,346
61,586,234 61,738,391 61,565,749 f1,726,846
11. CREDITORS: Amounts falling due Group Club
after one year 2022 2021 2022 2021
E E E
Bank loan 63,779,141 f5,304,053 f3,779,141 f5,304,053
Analysis ofbank loans:
Amounts
falling due:
Within one year 404,908 684,904 404,908 684,904
Amounts
falling due:
Between one and two years 3,779,141 684,904 3,779,141 684,904
Between two and five years 4,619,149 4,619,149
63,779,141 65,304,053 63,779,141 f5,304,053

The income
following:		 fu nds ofthe Club include u nrestricted
and res		 tricted funds comprising
ofth		 e
As at Balance at
1January Net Transfers 31December
2022 Income / between
funds		 2022
expenditure
f
Unrestricted funds:
General fund 1,192,029 (1,192,029)
Designated
funds:
Fixed asset fund 7,588,241 1,209,630 8,797,871
Legacy fund 114,519 7,197 (87,754) 33,962
Friends ofthe RAF Club 105,630 30,000 135,630
Fine art and stained window fund 6,504 (10,850) 15,000 10,654
Staff welfare 24,000 (87,754) 87,754 24,000
Total designated funds 7,733,264 14,223 1,254,630 9,002,117
Total unrestricted funds 7,733,264 1,206,252 62,601 9,002,117
Restricted funds:
601 Squadron —Victoria aar refurbishment 61,829 8,250 (62,601) 7,478
Total funds f7,795,093 f1,214,502 f9,009,595
As at Balance at
1January Net Transfers 31 December
2021 Income / between
funds		 2021
expenditure
f
Unrestricted funds:
General fund 889,035 (889,035)
Designated
funds:
Fixed asset fund 6,693,785 894,456 7,588,241
Legacy fund 57,185 57,334 114,519
Fine art and stained window fund 8,546 (2,042) 6,504
Staff welfare 24,000 24,000
Total designated funds 6,759,516 55,292 918,456 7,733,264
Total unrestricted funds 6,759,516 944,327 29,421 7,733,264
Restricted funds 91,250 (29,421) 61,829
Total funds f6,759,516 f1,035,577 f7,795,093

ANALYSIS OF NET ASSETSBETWEEN FUNDS Non-current
Net Assets/
Fixed assets Current assets liabilities Total
GROUP AND CLUB 6 6 6 6
Restricted funds 7,478 7,478
General fund
Designated funds —fixed assets 10,556,350 2,020,662 (3,779,141) 8,797,871
Designated funds - other 204,246 204,246
610,556,350 f2,232,386 (63,779,141) f9,009,595

Unrestricted Restricted Total
Funds Funds 2021
Notes 6 6 6
INCOME FROM:
Charitable
activities
Club income 1 6,166,072 6,166,072
Donations
and legacies
Legacies 57,334 57,334
Restricted
Donations		 91,250 91,250
Donations
from appeals		 and Friends of 299,666 299,666
the Club
Government
grant income		 476,835 476,835
Other trading activities
Trading
activities		 7a 58,394 58,394
Total income 7,058,301 91,250 7,149,551
EXPENDITURE ON:
Charitable
expenditure
Club operating
costs		 2 6,196,116 6,196,119
Fine Art 2 2,042 2,042
Donations
made		 2 8,000 8,000
Other trading activities
Trading
activities		 7a 22,744 22,744
Raising funds
Fundraising
costs		 2 15,574 15,574
Total expenditure 2 6,244,479 6,244,479
Net income (expenditure) before investment
gains/(losses) 813,822 91,250 905,072
Net loss on investment of interest rate swap 130,505 130,505
Net (expenditure)/
income		 944,327 91,250 1,035,577
Transfers between
funds		 12 29,421 (29,421)
Balance brought
forward		 6,759,516 6,759,516
Balance carried forward 67,733,264 f61,829 f7,795,093