Fly Navy Heritage Trust Limited (A Charilable Company Llmited by Guarantee) Annual Report and Financial Statements For the Year Ended 31 December 2022 Company Number: 05971284 Charity Registered in England and Wales Number: 1117272 "ACCUOD41" 2PJ09r2023 COMPANIE5 KJUSE A10
Fly Navy Herltage Trust Llmlted Contents For the Year Ended 31 Drnber 2022 Pa Reference and Administrative Details Trustee Directors, Report (including Statement of Trustees, Responsibilities) Independent Auditors, Report 8-11 Consolidated Statement of Financial Acts'vities 12 Balance Sheet and Consolidated Balance Sheet 13-14 Slatemenl of Cash Flows and Consolidated Statement of Cash Flows 15 Notes to Financial Statements 16-30
Fly Navy Heritage Trust Limited Reference and Administrative Details For the Year Ended 31 December 2022 Patron HRH the Duke of York KG GCVO (resigned 13 January 2022) President Admiral Sir George Zambellas GCB DSC ARC DL FRAeS Trustee Dlrectors: Chairman Rear Admiral T A Cunningham CBE Ex- Officio Rear Admiral M J Connell CBE Asst Chief of Naval Staff {Aviation & Carriers) {resigned 1 May 2022) Assl Chief of Naval Staff (Aviation & Carriers) (appointed 1 May 2022) - Commanding oificer RNAS Yeowlton Rear Admiral S Moorhouse CBE Commodore N R Grffin MBE RN Elected Rear Admiral S B Charlier CBE FRAeS - Chairman FAA Officers, Association MsSLCook Wice President. UK Government business Leonardo {MW) Business Executive. aircraft owner Business Executive. Lockheed Martin UK Limited President. Kennet Avialion Business Executive. aircraft owner (resigned 22 September 2022) Solicitor Chartered Accountant Deputy Chairman FNHT. Business Executive Comm¢)dore W M Cowngton CBE RN Mr E TTaylor MrT J Manna MrMJRyan Mr N R Smith Mr M J F Strong Rear Admiral I P G Tibbitt CBE Chief Exocutive Officer Commodore R S Alexander OBE FRAeS Company Secretary Mr N R Smith Charity Number 1117272 Company Number 05971284 Principal Address and Registered Office Building 412, South Dispersal, RNAS Yeovilton, Ilchesler. Somerset, BA22 8HT Auditors Albert Goodman LLP, Goodwood House. Blackbrook Park Avenue, Taunton. Somerset. TA12PX Bankers Barclays Bank Plc, King George Street. Yeovil. Somersel. BA20 1 PX Page. 1
Fly Navy Heritage Trust Limited Trustee Directors, Report For the Year Ended 31 December 2022 The Trustee Directors ('Trustees") present their report and accounts For the Year Ended 31 December 2022. The financial statements have been prepared in accordance with the accounting policies set out in Note 1 to the financial statements and comply with the Charity's goveming documenl. applicable law and the requirement of the Accounting and Reporting by Charities.. Slalement of Recommended Practice applicable to charities preparing their accounts in accordan with the Financial Reporting Slandard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019). References and Administrative Details Administrative infomiation is given in a separate section at the front of ihese accounts. Structure Govemance and Management The Fly Navy Heritage Trust was registered with the Charity Commission and is constituted and regulated by a Declaration of Trust dated 16 July 1991. In Dernber 2006 the Trust Iransfetred ils assets and undertakings. in accordance with the incorporation agreement dated 31 December 2006, to the Fly Navy Heritage Trust Limited. This company. limited by guarantee. (company registration number 05971284) was incorporated on 18 Oclober 2006,- it is registered with the Charity Commission (charity registration number 01117272). In accordance with the goveming document, the currenl truslees may appoinl additional trustees and have absolute discrets'on and unreslricted powers to invesl Irusl monies. Trustees may serve for up to three years before requiring re-appointment. Induction and training of trustees New Trustees are inducted and trained using infomation obtained from various sources, including the Charity Commission. attendance as required at specialist courses and by personal briefings. Organisational structure A full list of trustees and directors (all trustees are also directors of the company) who have served since 31 December 2021 is shown on page 1. The Trustees meet at least three times a year lo discuss and review the current and future position of the Charity. The Charity occupies office space within MOD owned buildings within RNAS Yeovilton and now. in accordance with the Trustees. diredive to increase Ihe fundraising capacity of the charity, employs 17 staff members. Related parties Navy Wings Heritage FIh1 Limited (NWHF) (company registration number 07052646) is a wholly owned subsidiary of the Charity and exists as the trading operation of the Charity. Activities include sales of aircpft displays. sales of souvenir merchandise and the operation of the Chipmunk Mk 22 (G-CNVHI. Key management personnel Remuneration for key management personnel is set by a Remuneration Committee comprising the Trust Chairman, Deputy Chaiman and the Financial Trustee (an accountant). In setting salary levels, market comparators for similar roles within the charities sector are taken into consideration. There is also the need to ensure that key posts are attractive lo personnel having the detailed knowledge, experience and skills demanded of both the charity and directing an aircraft operating company. Page. 2
Fly Navy Heritage Trust Limited Trustee Directors. Report For the Year Ended 31 December 2022 Risk managernent The Trustees routinely assess the risks to which the Charity is exposed to ensure that syslerns and procedures are in place to miligale exposure in these areas. A Risk Register is held in the Charity's Business Plan and is reviewed al Management Group level and at each Trustees, meeting. Risk mitigation actions are included as part of the charity's annual Work Plan. Objectives The Charity's objectives are set out in the Memorandum of Association as follows.. To educate members of the Royal Navy and the public in the history. traditions and exploits of the Fleet Air Arm and the history of Royal Navy aviation generally. To provide a memorial and lribule to the men and women who have flown. maintained or contributed in any way to the operation of aircraft within the fleet. To advance the effectiveness of the armed forces of the Crown by promoting the efficiency of aviation in the Royal Navy. This can be summed up as: To Educate, Inspire and Remember" this is articulated as a single aim as follows-. Inspiring future generations by bringing together the aircraft. people and the story of flying from ships. Actlvlties The Chief Executive Officer, Commodore Jock Alexander. joined the Trust in February 2016. following which the Charity was re-branded as 'Navy Wings. in July of the same year. The aim remains lo reach as wide an audience as possible. supported by a continually evolving web-site and a wide collection of aircraft. The core Flight has now been renamed as the Navy Wings Heritage Flight. which consists of the ex-Royal Navy Historic Flight {RNHF) aircraft. along with ones the Trust owned. The bulk of fflanagement activity in 2022 was spent getting the aircraft around various locations in the UK. so that we could be seen as 'active' again after the COVID years. Major fund-raising activities were re-started in the form of dinners in London and a charity Clay Pigeon Shoot in Berkshire. Most of the ex RNHF aircraft are now owned by the Trust. with the expIlon of Swordfish LS 326, which remains mired in paper- work and is now expected to be gifted to us in late 2023. That said, we have been given permission by the Royal Navy to conduct maintenance on her. in the full expectation that she will belong to us in the fulure. The Memorandum of Understanding agreed with the Royal Navy. has once again been refreshed and continues to under-pin OLJr bLssiness. We are jrrentIY at the start of the 2023 display circuit and all our planned flying activity has so far been met. From a financial perspective. the Trust is in good health and we are wrrently in Year 3 of a 4 year investment programme to the tune of £1.25M per annurn. The stability of having £5M over four years cannot be underestimated and it has allowed us lo not only purchase our own training aircraft and helicopter. bul also to invest in a long-term plan for engine availability. along with a propèrly constituted engineering work- force. This enabled us to apply to the Civil Aviation Authority ICAA) for pem)ission to do our own engineering Maintenan and we now hold all the required licenses to do so. Our weekly lottery. which we launched in May 2020. appears now to have peaked in tem)s of growth and so we are no longer investing in building Ihe numbers, but rather will now let it run and lake the income stream. Meanwhile. our continued investment in online presence continues lo pay dividends and our retails sales finished yel another year ahead of budget. We have also rW faunched our own YouTube channel to monetise some of our videos and we expect to see the annual income from this gently buikl up in the fulure. Page. 3
Fly Navy Heritage Trust Limited Trustee Directors, Report For the Year Ended 31 DeGember 2022 We ran three fund-raising events in the form of a Corporate dinner in London. a Clay Pigeon shool at the Royal Berks Shooting Ground and an Ambassador's Dinner in central London, all of which were very well supported and returned a healthy profit. Finally, we have commissioned a bNo-part documentary on the History of UK Naval Aviation. which we expect to be ready for launch in Q4 of 2023 and which should retum a profit in years to come from downstream sales of DVD'S and digital dt)wn-loads. Volunteers and Sponsorship The Trust and Naval Aviation Ltd, together trading as 'Navy Wings,, ntInueS wilh ils well established Volunteering Policy, which concentrates on a crttical nudeus who provtde the core of this support. This network of volunteers is drawn from the Navy Wings Supporter base who provide their time free in order to promote. develop and support various activities that aim to deliver required funds to conlinue operation. Volunteer support is invaluable and is particularly useful in sales of merchandise and aircraft support operations. The latter encompasses aircraft stores. documentation and admin support alongside supervised aircraft mechanical engineering tasks. All volunteers receive induction and training and. as necessary. health and safety briefings and workplace clothing. In addition, we have a small team of high profile Supporters who volunteer to promote 'Nawy Wings, and the heritage aircraft as 'Ambassadors'. Corporato Support The Trust continues lo enjoy support from some key playets in industry. including some excitin9 new companies who have been attracted by our Corporate package programme and net-working opportunities. Our Corporate dinner in March 22 was a huge success and was completely sold out a few weeks ahead of the event, which demonstrates that this has now become the 'go to, heritage aviation dinner as we planned it should be. Grant making policy to Naval Wings Heritage Flight Ltd {NWHF> The Truslees (Jecided that our sole beneficiary should be re-named from Naval Aviation Lld. to Navy Wings Heritage Flight Ltd (NWHF) in order to ensure coherence of the Navy Wings brand. This was changed fomally with Companies House to date 1 Jan 23. The overall Business Plan for Navy Wings is to ensure NWHF becomes profitable. where the key drivers will be the diversificalion and growth of income streams, as well as generating income from aircraft. Although Air Shows have largely recovered from the Covid years, rnany of the smaller ones have simply ceased to exist and we expect this income stream lo remain low for some years to come. That said, we expect CAA permission to conduct paid flights in our Swordfish from early summer 23 and this should prove to be a regular new income stream. Sales of merchandise remain very strong and continue to show year on year growth. Achlevements and Perforniance The main achievement of the Charity was to get all of our aircraft either back into the air, or on a long temi, fully costed trajectory to get them there. We have used our high level of donations to invest in our future and we now have a long-term plan for engine sustainability. which should ensure succes5 for at least the next five years. All our planned displays were conducted without incident and the only lost events were due to inclemenl weather, which was out with our control. Our financial achievements are covered separately, but to summarise, we remain in an excellent financial position arKI we have a highly motivated and professional work-force properly constituted to take us forward. Page. 4
Fly Navy Heritage Trust Limited Trustee Directors, Report For the Year Ended 31 De¢ember 2022 Reserves policy Since there can be no guaranlee of the quantum of future income streams. the Trustees. policy is lo retain funds in eXsS of the current needs lo meet unanticipated expenditure which is an inherenl feature of maintaining historic airuaft. In addition, Trustees continue to ensure that available free reserves are adequate to cover in excess of 6 months operating costs of £779,646. At 31 sl December 2022 the group held £1,821.256 of free reserves. The eXs$ reserves are to provide funding for future projects. Planned expenditure for 2023 includes some £230k for Pegasus engine overhauls. a bill of £160K for a Pratt & Wilney engine for the Sea Fury and £80K for work on the Seafire Griffon engine. 2024 is expecled to include £200k for the Griffon overhaul and circa £280K for Pegasus spares, whilst 2025 is expected lo see a further £450k of Pegasus work and circa £195K of Wasp spares. Review of financial position From a financial point of vrew. 2022. was a successful year and a complete tumaround from a budgeted deficil due to Slgnificanl Grant & Legacy donations unexpectedly received in Ihe year. The previoLFsIy secured, significant funding that is set to continue for a further couple of years continues to provide sustainability to aid in the success in the Charity's long-term future. The total consolidated income included £860,462 of restricted income 127.9Yo) and £2,226.045 of unreslricted income 172.1%). Restricted income was applied to the purposes for which it was provided. Income from grants, donations and legacies decreased this year by £4.714.827 10 £2.432.036. The decrease was expected given the large donation of aircraft received in the prior year. NWHF Retail Sales (covering merchandising and aircraft displays) provided £207.588 of income. Merchandising continues lo grow year on year spurred on this year by post covid era air show sales. FNHT Events, which fom a large part of most income streams, provided a sizeable contribution of £444,095. Total consolidaled expenditure in 2022 totslled £2.567.859. which although an increase on prior year was a direct result of restricted expenditure for which funds were provided for. The Group held £287,159 of restriGled funds at the year end and £7,008.781 in unrestricted funds. Cash and short temi investments totalled £1.723.258 at 31 December 2022 compared with £1.223.110 at the previous year end. Capital expenditure totalled £2,023,836 during the year. comprising of operational and IT equipment and a Seafire Mk XVII. Plans for fulure poriods The Charity is now able to invest in a long-temi strategy for the production and refurbishment of engines, which has always been a Critical line of support. We are stream-lining our Fleet by disposing of the Sea Vixen. which would have been too costly to retum to flight and investing some time and effort in bringing our Sea Hawk back to flight. We continue to investigate alternalive income streams such as the lottery. our own YouTube channel and the forthcoming (locumentary. whilst we have also attracted some considerable positive PR interest with several cameo rv appearances lined up. The Trusl continues to plan for a sustainable programme and antIpateS eventually operating a core flwng fleet of one Swordfish. either a Sea Fury or a Seafire. the Wasp helicopter and one Sea Hawk jel. Golng concorn The Trustees have. as always. given careful consideration to the cashflow forecasts of Ihe charity covering Ihe period of at least tsvelve months from the date of signing the accounts. They are satisfied that the charity has sufficient WOTking capital resources in place over Ihat period and therefore the accounts are drawn up on the going concern basis. Page. 5
Fly Navy Heritage Trust Limited Trustee Directors, Report For the Year Ended 31 December 2022 Auditors The auditors. Albert Goodman LLP are deemed to be reappointed under section 487(2} of the Companies Act 2006. Small company provisions This report has been prepared in accordance with the small companies regime under sedion 487(2) of the Companies Act 2006. Page. 6
Fly Navy Herllage Trust Llmlted Trustee Directors. Report For the Year Ended 311)ecember 2022 Statement of trustees, responsibililies The trustees (who are direcaors of the Fly Navy Fknge Twst Limrted for the pwposes of company law) are responsible for preparing the Trustee DireLor5' Report and the finanaal slatements in accordance with applicable law and United Kingdom Accounting Standards, irLdudirKJ FmncIal Rem'ng Sland 102. the FinanGial Reporting Standard apt in Ihe UK afKI the Repubk d Ireld (United Kiwdom Ger81 Accepted Acc(MJnting Practice). Company law requi the trustees to prepa financial slatements for each financial year which gNe a tn and faw view of the state of affairs of Ihe charitable company aThJ the group and of the incoming resources and application of resources. indudng the income and expenditure of the tharilable group for that period. In prepanng these financial slatsments. Ihe are requred to: Select surtabk accountsNJ polic4es appty them consi•.' ObseNe the methods arrfl wincrjles in the Charknes SORP: Make jUdgnts and accounting estirnatesthat are reasonable and prudent. State whether applicable UK Accoun15ng StaTrtsrd have been follty4d. suLy"e( to arby material departures disclos&d and explained in the ffinancial statements. and Prepare the finanoal statements on 1he going concem basis unless it is itwppropriate to Presume that the chartlable company will continue in bun. The tnJstee5 are responsible lor keeprg adquate accounling records that disclose wfth reasonable aecura¢y at any time the financial posrtion of the tharitsble ¢ompany and enable Ihem to ensure that the financial statements compty with the compan Act 2006. They are atso responsible for safeguarding the assels of the charitable company and the group and hen for taking reasonabk steps for the wevention and detection of fraud and ottrw rnjularits The trustees are resp¢x)sible for Ihe rnaintenan and ntegrity of tre corporate and finanaal irrformation included on the Charitab company's website. Legislation in the Vnrted KirwJdcKn goveming the preparats.on aThJ disseminatiOD of ffinancHI statements may drffer from kgislalion in ottr juiisdiclions. statement as to di$¢losure to our audltors In so far as the trustees are aydre at the tNne clapproving our 1ntstees' annual reporL' The no rdevant infomlation. bewry U)fOrmati needed by the auditor in ¢onnedion with preparing their report of which the group's audiky 15 un¥wwe", and The trustees have each taken all the steps that tly ou9M to hab taken to make themse5ves Wware of any relevant audrt infonnation and to establish that the auditor is aware of tro wknation Approved by the Tru&ees on ... . swjned ¢)n Ihwr behaff by: Rear Admiral T A Cunningha Chairman and Trustee C8E Page. 7
Fly Navy Heritage Trust Limited Independent Auditors, Report to the Trustees and Members For the Year Ended 31 December 2022 Opinion We have audited the financial stslements of Ihe Fly Navy Heritage Trusl Lirniled For the Year Ended 31 December 2022, which comprise the consolidated Slatemenl of Financial Aclivities, the consolidated and parent charitable company Balan Sheets, the consolidated and parent charitable company Statement of Cash Flows. and Notes lo 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 Generally Accepted Accounting Practice. including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practi). In our opinion the financial statements.. give a true and fair wew of the state of the group's and Ihe panI charitable company's affairs as at 31 December 2022, and of the group's incoming reSoUrS and application of reSoUrs. including its income and expenditure, for the year then ended- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordan with the requirements of the Companies Act 2006. Basis for opinion We conduded our audit in accordance with Intemational Standards on Auditing (UK) (ISAS {UK)} and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our. audil 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 finanaal statements. we have concluded thal the Trustee's use of the going concem 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 UnrtaIntieS relating to events or onditions thal, individually or collectively. may cast significant doubt on the charitable company's ability to continue as a going concem for a period of at least tsvelve months from when the original financial statements were authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going COnM are described in the relevant sections of this report. Other infomiatiorb The trustees are responsible for the other information. The other informath)n comprises the informalion included in the Trustees. Report. other than the financial statements and our auditor's report Ihereon. Our opinion on the financial statement5 does not cover the other information and. except to the extent otherwise explicitly ststed in our report. we do not express any form of assurance conclusion thereon. Page. 8
Fly Navy Heritage Trust Limited Independent Auditors, Report to the Trustees and Members For the Year Ended 31 Dember 2022 In conneGtion with our audit of the financial statements. our reSnsIbIlity is to read the other information and. in doing so. consider whether the other information is materially inconsistent with thè 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 misslalement in the financial statements or a material misstatement of the other infomialion. If, based on the work we have perfomied. we Gondude that there is a material misslatement of thi5 Other informats'on. we are required to report that fact. We have nothing to report in this regard. Opinion on other matters prescribed by the Companies Act 2006 In our opinion. based on the work undertaken in the course of the audit: the informalion given in the Trustee Direclors. Report. which includes the Directors, Report prepared for the purposes of company law for the financial year for which the financial statements are prepared is consistent with the financial statements- and the Directors. Report included within the Trustee Directors, Report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge arKI understanding of the group and parent charitable company and their environment obtained in the course of the audit, have not identified material misstatements in the Directors, Report included wilhin the Trustee Directors, Report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you rf. in our opinion: adequate accounting records have not been kept by the pant charitable company, or retums adequate for our audit have not been received from branches not ViSlted by us. or the parent company financial statements are not in agreement with the accounting records and returns.. or rtain disclosures of trustees. remuneration specified by law are not made., or we have not received all the information and explanations we require for our audit., or the trustees were not entitled lo prepare the financial statements in accordance WFlh the small companies. regime and lake advantage of the small companies. exemplions in preparing the Trustees. Report and from the requirement to prepare a Strategic Report. Responsibilities of trustees As explained more fully in the Statement of Trustees Responsibilities (set out on page 7). the trustees {who are also the directors of the parenl charitable company for the purposes of company lawl are responsible for the preparation of the finanoal statements and for being satisfied thal they give a true and fair view. and for such internal control as the trustees detemiine is necessary to enable the preparation of financial statements Ihdl dre free from material niisstrdtement. wlielli¥i due lu fr<iud ui eiivi. In preparing the financial statements, the trustees are responsible for assessing the group and parent charitable companws ability lo continue as a going concem, disclosing. as applicable, rnalters related lo going conrn and using the going concem basis of accounting unless the trustees either intend to liquidale the parent charitable company or to cease operations. or have no realistic altemative bul to do so. Pa9e. 9
Fly Navy Heritage Trust Limited Independent Auditors, Report to the Trustees and Members For the Year Ended 31 December 2022 Auditorfs responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial slalements as a whole are free from material misstatemenl. 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 aayS detect a fflalerial misstatement when it exists. Misslatements 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 statefflenls. A further description of our responsibilities for the audit of the financial slatements is located on the Financial Reporting Council's website at www.frc.org.ukJauditorsresponsilxlities. This description fomis part of our Report of Independent Auditors. The extend to which the audit was considered capable of detecting irregularities including fraud Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws arKI regulations. was as follows.. the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. we identified the laws and regulations applicab to the company through discussions with directors and other management. and from our commercial knowledge and experience of the charity and aviation sector. We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, Charity SORP. Aviation law. data protection. anti-bribery. employment and health and safety legislation. We assessed the exlent of Complian with the laws and regulations identified above through making enquiries with management. Identified laws and regulations were communicated within the audit tearn regularly and the team remained alert to InStanS of non-complian throughout the audit. We assessed the suscepiibility of Ihe company's finan¢ial statements to material misstatement including obtaining an understanding of how fraud might occur by: Making enquiries of management as to where they considered there was sus¢eplibility lo fraud, their knowledge of actual. suspected and alleged fraud.. and Considering the intemal controls in place to mitigate risks of fraud and non-compliance with laws and regulations To address the risk of fraud through management bias and override of controls. we: Performed analytical procedures to identfy any unusual or unexpected relationships.. Tested joumal entries to identify unusual transactions.. Assessed whether judgements and assumptions made in detemiining the accounting estimates were indicative of potential bias- and Investigated the rationale behind significant or unusual transactions. Page. 10
Fly Navy Heritage Trust Limited Independent Auditors, Report to the Trustees and Members For the Year Ended 31 December 2022 In response to the risk of irregularities and non-compliance laws and regulations we designed procedures which included, but were not limited to: Agreeing financial statements disclosures to underlwng supporting doGumentatTron-, Reading the minutes of meetings of those charged with governance" Enquiring of management as to actual and potential litigation and claims. There are inherent limitstions in our audit procedures described atM)ve. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non- complian. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence. if any. Material misstatements Ihal arise due to fraud can be harder to detect than those that arise from error as they may involved deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at WVM. rc.or .ukjauditorsS onsibilities. This description fonns part of our auditor's report. Use of our report This report is made solely to Ihe group and parent charitable company's members. as a body. in accordance with Chapier 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state lo the group and parent charitsble company's members and trustees those matters we are required lo state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility lo anyone other than the group and parent charitable company and the group and parent charitable company's members as a body and the parent charitable company s trustees as body, for our audit work, for this report, or for the opinions we have fomied A&t LLF Robert Oram BFP FCA (Senior Statutory Auditor) for and on behalf of Albert Goodman LLP. Statutory Auditor Goodwood House Blackbrook Park Avenue Taunton TA12PX Page. 11
Fly Navy Heritage Trust Limited Consolidated Statement of Financial Activities (induding income and expenditure account) For the Year Ended 31 December 2022 Unres- tricted Re$4ricted T¢)tal 2022 Unres- tri¢tod Rv&s-trict&d Total 2021 Notes Income- Grants, donations and legaoes ¢)thef trading activities Interest receivable 2 1.571,574 651.808 2.663 860.462 2.432.036 4.465.157 651,808 1,372.067 2.663 179 2.681.706 7,146,863 1.372,067 179 Total Income 2.226.045 860.462 3.086,507 5,837,403 2,681,706 8,519.109 Expenditure: Costs of raising funds Charitable activities 5 1.008.568 6 1,185.988 1.008.568 1,559,291 673.674 698.257 189,036 515,848 862,710 1.214,105 373,303 Total expenditure 2.194,556 373.303 2.567,859 1.371.931 704,884 2.076.815 Net (expenditureifincome for thg year before transfers and gains and losses 31.489 487.159 518.648 4.465.472 1.976.822 6.442,294 Transfers between funds Realised and unrealised gains and losses Tax charge 17 2.200,000 12,21KJ,0001 160.000) 73.231 {73,231) 160,OW) 18.174 18.174 124.1271 124.1271 Nat Incomel{expenditure> and net movamont in funds for the ygar 7 2.189.663 (1,712,841) 476.822 4.514.576 1,903.591 6.418.167 Reconclllatlon of funds Total funds brought forward 4.819.118 2.IXIO.000 6.819.118 304.542 96.409 400.951 Total funds carriod forward 7.008.781 287.159 7.295.940 4,819,118 2,000.000 6,819.118 The statement of financial activities includes all gains and losses recognised in the year. All inwrne and expenditure derive from continuing activities. Page. 12
Fly Navy Heritage Trust Limited - Company Number OS971284 Balance Sheet and Consolidated Balance Sheet As at 31 December 2022 2022 2021 Notes Group Charity Group Charlty Flxod assets Tangible fixed assets Investments 5,187,525 5,123.712 3.253.652 3,126,670 12 5,187.525 5.123.713 3.253.652 3.126.671 Current assets Stock Deblors Cash at bank and in hand 13 14 203,233 451,797 1.723.258 50.000 585.702 1,568.475 178.318 2.412.285 1.223,110 50.000 2.336.529 629.685 2.378.288 2.204,177 3.813,713 3.016.214 Liabllltles.. Creditors falling due wthin one year 15 (263.920) (92,851) (224.120) (105.718} Net CUTrent assets 2.114.368 2.111.326 3.589.593 2,910,496 Provision for liabilities 16 (5.953} 124,127) Tolal n•t assels 7.295.940 7.235,039 6,819,118 6.037.167 The funds of the charlty: Restricted funds Unrestricted funds Revaluation reserve -17 17 17 287.159 6,968,783 39.998 287.159 6,947.880 2.000.000 4.719.120 99.998 2,000,000 4,037,167 Total charity funds 7,295,940 7,235.039 6.819.118 6,037.167 The trustees have prepared group accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Acl 2011. These accounts are prepared and delivered in accordance with the special provisions of Part 15 of the Companies Act relats'ng to small Companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company. The charity has taken advantage of Section 408 of the CompanTres Act and has not included its own Income and Expenditure Account or separate Statement of Financial Activities. The Fly Navy Heritage Trust Limited has net incoming resources for the year of £1.197,872 {2021 £5,607,985 incoming resource5) based on income of £3.560,746 (2021- £7,385.278). Page. 13
Fly Navy Heritagè Trust Limited _ coMnY 14umb•r 05971284 Balan Sheet and Consolidated Balance Sheet As at 31 Dember 2022 The notes from pages 16- 30 form part ofthese accounts. Approved bytheBoardon............. ...................... and 5i9ned tlw behalf ty: Rear Admiral T A Cunni Tfustee Director ham CBE MrMJFStrory Trustee Director Page. 14
Fly Navy Heritage Trust Limited Statement of Cash Flows and Consolidaled Statement of Cash Flows For the Year Ended 31 December 2022 Total 2022 Total 2021 Notes Group Charity Group Charity Cash flows from operating aclivities Nel m¢)vemenls in funds for the year Adjuslmenls lo $h flows from non<ash items Depreciation Donated assets Interest receivable Deferred tax provision 476.822 1.197,872 6.418.167 5.607.985 6,226 27,187 5.748 {2.,000) (2.900.000) {1791 {179} 24,127 {2.663) 18.174 (2.663) 485.948 1,201,435 3,569.302 2.713.554 Working Capital adjustments Ilncreaseydecrease in stocks Ilncrease)Idecrease in debtors Increaselldecrease) in uedrts 13 14 15 124.915) 1.960.488 39.800 (54,323) 150,0001 1.7SO.827 (2.251.072) 11.883.827) (12.867) {4,761) 1104,5211 Net cash flow from operations 2,461.321 2.939.395 1.259.146 675.206 Cash flows from investing activities Interest leiVable Acquisitions of tangible assets 2.663 2.663 179 179 (2.023.836) 12.003.268) 1235,519) 1231,925) Nel (deeaselr1ncrease in cash and cash equNalents 440.148 938.790 1.023.806 443,460 Cash and cash eqvivalenls at the beginning of the reporting period 1.223.110 629,685 199,304 186.225 Cash and cash equivalents at the end of the reporting period 1.663.258 1.568,475 1,223,110 629,685 Cash & Cash equwalents reconcilkqtion: Cash al bank 1,723,258 1.568.475 1,223.110 629.685 Total cash & cash equivalents al the end of the reporting period 1,723,258 1.568.475 1.223.110 629,685 Page. 15
Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2022 Accounting Policies The principal accounting policies adopted in the preparan of the financial statements are as follows: Basis of accounting The financial statements have been prepared in accordan with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordan with the Finanaal Reporting Standard applicable in the UK and Republi¢ of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Fly Navy Heritage Trust Limited 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) and all amounts are presented in £ sterling. These financial slalements consolidate the results of the Charity and its wholly owned subsidiary, Naval Aviation Limited, on a line by line basis. The "Group- heading within the balance sheet refers to the consolidated accounts of the Fly Navy Heritage Trust Limited and Naval Aviation Limited. In the parent company financial statements the investment in the trading subsidiary is accounted for al cost less impairment. There are no material UnrtaInlieS about the charivs ability to continue as a going concern. The Trustees have considered the implicats'on of Ihe Covid-19 pandemic on the operalions of the chanty. Grant and donation income has been reiVed thal is sufficient to cover the temporary reductions in fundraising and trading income. Tang inlo account all reasonable circumstances. the trustees believe that the charity remains a going concem and no adjustments lo the accounts are necessary. Legal status of the Trust The Trust is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. Th8 company is incorporated in England and Wales and the ¢ompany registered Offi is detailed on page 1. reference and administration details. Income Income frofn grants and donations is regnISed in the year in whith they are receivable when there is evidence of entitlement. receipt is probable and the amount can be r81iably measured. For legacies. entitlement is taken as the earlier of the date on bvhich either.. the charily is aware that probate has been granted, the eslale has been finalised and notrfication has been made by the execulor(sl lo the Trusl that a dislribution will be made, or when a distribution is reiVed from the estate. Receipt of a legacy. in whole or in part. is only considered probable when the amount can be Measured reliably and the charity has been notified of the executorfs intention to make a distribution. Where legacies have been notified to the charity. or the ¢harity is aware of the granting of probate. and the criteria for income recognition have not been met. then the gaCY is a treated as a contingent assel and disclosed if material. Income from other trading income is induded in the period in which the group is entilled to receipt, it is probable that economic benefits will flow to the entsty and th& amount can be reliably measured. Page. 16
Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2022 Donated goods and services Donated services and donated facilities are recognised as income when the charity has control over the item. any conditions associated with the donated item have been mel, the reIpt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. On receipt. donated serVIS and donated facilrties are recognised on the basis of the value of the gift to the charity which is the amount the Charity would have been willing to pay to obtain services or facililies of equivalent economic benefit on the open market,. a corresponding amount is then recognised in expenditure in the period of receipt. Income is recognised within grants, donalions and legacies and expenditure within costs of raising funds and charitable activities. Interest receivable Interest on funds held on deposit is induded when receivable and the amount can be measured reliably by the charity., this is norrnally upon notification of the interest paid or payable by the Bank. Expenditure and irrecoverable VAT Resou$ expended a recognised on the aual5 basis to match the period in which the expenditure was incutred. Costs of raising funds are expenditure incurred in generating the trading subsidiary funds and in generaling the charity fundraising event income funds. Charitae activities expenditure comprises costs incurred in by the charity in the delivery of ils charitable purposes for beneficiaries including grants payable to other institutions. Grants payable are at the discretion of the Trustees. They are in furtheran of the charity's objects. to support and promote the efficiency of aviation in the Royal Navy and to educate the members of the public in ihe history. tradilions and exploits of the Fleet Arm and the history of Royal Naval Aviation. Operating leases Rental charges are charged on a straight line basis over term of the aSe. Fund accounting Unrestricted funds are available to sperKI on activities that further any of the purposes of charity. Restricted funds are donations which the donor has specified are lo be solely used for particular areas of the Trust's work or for specific artistic projects being undertaken by the Trust. Page. 17
Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2022 Tangible fixed assets and depreciation Aircraft are initially recorded at cost and are then revalued at the year end. The Trustees review the assets for impairment each year. Donated aircraft are brought in at fair value. Computer equipment is stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life as follows.. Plant and machinery Office equipment Computer equipment 3 years straTrght line 3 years straight line 33% reducing balance Aircraft are not depreciated. The aircraft are continuously maintained and repaired and as a result of this, the directors have considered that they do not depreciate. The aircraft are reviewed for impaimient each year. 1.10 Investmonts Investments in equity shares which are publicly traded or where the fair valve can be measured reliably are initially measured at fair value. with changes in fair value recognised in profil or loss. Investmenls in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impaiment. 1.11 Stock Stock consists of merchandise for resale and is valued at the lower of cost and net realisable value. after due regard for obsdete and sl¢JW moving stocks. 1.11 Debtors Trade and other debtors are recognised at the settlement amount due after any trade discount offered. PrepayThents are valued at the amount prepaid net of any trade dksrxjunts due. 1.12 Cash at bank and in hand Cash at bank and cash in hand includes cash and short lemi highly liquid investments with a short rnaturity of three months or less from the date of acquisition or opening of the deposit or similar account. 1.13 Creditors Creditors are recognised where the charity has a present obligation results'ng from a past evenl that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are nomially recognised at their settlement amount after allowing for any trade discounts due. 1.14 Defined contribution pension A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even rf the fund does not hold suiTicient assets to pay all employees the benefit5 relating to employee service in the current and prior periods. Contributions to defined contributyon plans are recognised as staff pension expense through the profit and loss when they are due. Page. 18
Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2022 1.15 Taxation As a registered charity. the cornpany is not liable to corporation lax or capital gains tax to the extent that its incorne and gain5 are applicable to charitable purposes only. Value Added Tax is not recoverable by the company, and is therefore included in the relevant costs in the Stalement of Financial Activities. The charity subsidiary is able lo recover Value Added Tax and therefore il is not included within the relevant costs in the Ststement of Financial Activities. 1.16 Financial instruments The charity only holds basic finanaal instnjments as defined by FRS 102. The financial assets and financial liabilities of the cornpany are as follows- Financial assets trade and other debtors, accrued income. amounts owed by group undertakings and other debtors are basic financial instruments. and are debt instruments measured at amortised cost. Prepayments are not financial instrumenls. Cash at bank- classified as a basic financial inslnjment an(J is measured al face value. Finan¢ial liabilities trade creditors. amounts owed to group undertakings, bank loans, accru8d expenses and other creditors are financial instruments. and are measured at amortised cost. Taxation and social security and corporats-on tax Creditors a not included in the financial instruments disclosure definition. Grants. donations and legacies Unres- trlcteded Res- tricted Total 2022 Unres- tricted Res- tricted Total 2021 Grants, donations arKI legacies 1.571.574 860,462 2.432.036 4,465.157 2.681.7C 7.146,863 1,571.574 860.462 2,432.036 4.465,157 2,681,706 7,146.863 Other trading income Unres- tricted Unres- trlcted Res- tricted Total 2021 trlcted Totsl 2022 Merchandise Fundraising event income Other income 207,588 444.095 125 207.588 444.095 125 132,170 238.536 1.001.361 132.170 238.536 1,001,361 651,808 651,808 1,372.067 1.372,Ck87 Page. 19
Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2022 Interest receivable Unre5 lii¢ted Res- trICt Total 2022 Unr•s- tri¢ted Re¥- tricted Total 2021 Bank interest 2.663 2.663 179 179 Costs of raising funds Unres- tricted Unres- trbCt8d Res- trl¢ted Totsl 2021 tricted Total 2022 Fundraising costs PR and advertisirvJ Trading costs 319,918 11.895 676,755 319.918 11,895 676.755 58.263 22.010 593,401 189.036 247.299 22.010 593.401 1,008,568 1.008.568 673.674 189,036 862,710 Charitable activities Unres- Res. tricted T¢)lal 2022 Unres- tricted trl¢ted Total 2021 Aircraft maintenance Grants paid to institutions Insurance Payroll fees Staff c051s Consultancy Other administration Depreciation Govemance costs Bad debts 236.108 260,462 496,570 115.818 237.826 353.644 13,628 2.026 672,343 91,848 79,864 29,868 60.303 13,628 2.026 672,343 204,689 79,864 29.868 60,303 8.235 1.816 401,996 42,074 54.688 27.186 8,235 1,816 632,518 75,724 64,288 27,186 50.694 230,522 33,650 9,600 112.841 4.250 1.185.988 373.3)3 1.559.291 698.257 515.848 1.214.105 Page. 20
Fly Navy Heritage Trust Limited Notes to the Financial Stalements For the Year Ended 31 December 2022 Not incomel(expenditure) for the year This is stated after charging-. Charlty 2021 Subsidiary 2021 Total 2021 2022 2022 2022 Depreaation of owned assets Auditors remuneratKJn Audit services Other services - accounting 29,*3 21,439 51.402 21.438 81,365 42.877 6.250 2.3 2,2iXI 8,550 8.500 935 935 Trustee directors The charity trustees were not paid or received any other benefits from employment with the Trust or its subsidiary in the year {2021 - £nil). No trustees were reimbursed expenses (2021 £nill during the year. No charity trustee reiVed payment for professional or other services supplied lo the charity (2021 £nil). The Charity has paid £1.421 (2021- £1.198) for directors and officers indemnity insurance. Defined contribution pension scheme The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme arKI amounted lo £11.044 (2021 £9.426) Contributions totalling £2.754 (2021- £2.534) were payable to the scheme at the end of the year. Page. 21
Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2022 10 Employees Number of employees The average monthly number of employees during the year was". 2022 2021 Chief executive officer Management and administration 16 16 17 17 Employment costs 2022 2021 Wages and salaries Social security costs Pension costs 598.785 58.733 11.044 569,503 50,853 9.426 668.562 629,782 The number of employees vthose annual emoluments were £60,000 or more were: 2022 number 2021 number £100.000 - £110,000 £110,000 - £120,000 No pension cosls We paid lo this individual during the year {2021- £nil) The key management personnel of the group comprise those of the Twsl and its wholly owned subsidiary Navy Wings Heritage Flight Limited. The key management personnel of the Trust comprise the trustees and the Chief Executive Officer. Navy Wings Heritage Flight Limited does not have remuneration costs as all staff are paid by the Trust. The total employee benefits including employers national insurance and employers pension costs of the key management personnel of the Twst were £120.092 {2021- £116.958). Page. 22
Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2022 11 Tangible fixed assets Aircraft Plant & achinery Computer Equipmenl Total Equipment At 1 January 2022 Additions Impairment 3,213,(M)O 2.(KMJ.000 (60.(KJO) 51.507 19,437 14.531 1,131 60.974 3,268 3,340,012 2.023,836 160,000) At 31 December 2022 5,153,000 70.944 15.662 64.242 5.303,848 Depreciatlon At 1 January 2022 Charge for the year 28,896 20.022 10.160 3.715 47,304 6.226 86,360 29,963 At 31 Dernber 2022 48.918 13.875 53,530 116.323 Net book value Al 31 December 2022 5,153.000 22.026 1,787 10,712 5.187.525 Al 31 December 2021 3.213.000 22.611 4.371 13,670 3.253,652 The year end open market value of the aircraft has been considered by the Trustees and the revaluation reflected in in the accounts. The value of the aircraft donated has been bought in at the insurance value. which is considered to be a fair reflection of the market value of the aircraft. The historical cost of the aircraft is £2. Charlty Alr¢raft Computer Equipment Total Cost At 1 January 2022 Additions 3.113.000 2,000.000 60.974 3,268 3.173,974 2.003,268 At 31 December 2022 5.113.000 64.242 5.177,242 Depreciation At 1 January 2022 Charge for the year 47.304 6,226 47,304 6.226 At 31 Drnber 2022 53,530 53,530 Net book value At 31 Dernber 2022 5.113.000 10,712 5.123.712 At 31 December 2021 3.113.0 13,670 3,126,670 The year end open market value has been nsidered by the trustees and the revaluation reflected in the accounts. The value of the aircrafl donated has been bought in at the insurance value. which is considered to be a fair reflection of the market value of the aircraft. Page. 23
Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2022 12 Investments Charity 2022 2021 Navy Wings Heritage Flight Limited - 1 ordinary shares of £1 each Navy Wings Heritage Flight Limited (company no. 07052646) was incorporated in England and Wales on 21 October 2009 as a wholly owned trading subsidiary of Fly Navy Heritage Trust Limiled. The parent charity holds 100% of the issued share capital and voting rights of the subsidiary. The principal activity of the company is the operation of commercial activity on behalf of Fly Navy Heritage Trust Limited. The subsidiary gift aids its taxable profits to Fly Navy Heritage Trust Limited, and files audited accounts with the Registrar of Companies. A summary of the trading results is shown below: 2022 2021 Tumover Cost of sales 1.232.241 {1.173.325} 1,840,247 (947,045) Gross profit Administrative expenses 58,916 1798.1401 893,202 (58,893) Net loss before tax Taxation 1739.224) 18.174 834,309 124,127) Retained in subsidiary {721.050) 810.182 The assets and liabilities were: Fixed assets Current assets Current liabilities Provisions 63.813 345,216 (342,175) (5.953) 126,982 847,499 {168,403) (24.127) Total nel assets 60.901 781,951 Called up share capitsl Revaluation reserve Profit and loss account 39,998 20,902 99,998 681.952 60.901 781,951 Page. 24
Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2022 13 Stocks 2022 Charity 2021 Charity Group Group Goods for resale 203.233 50,000 178.318 50,000 14 Debtors 2022 Charlty 2021 Charlty Group Group Trade debtors Other debtors Prepayments and accrued income Amounts owed by group undertakirwJs 38.244 27,023 386.530 37.100 26.444 51,435 2,334,406 17,406 377.497 171.105 2,31g.123 451.797 585.702 2,412.285 2,336,529 15 Creditors: Amounts falling due within one year 2022 Charity 2021 Charity Group Group Trade creditors Accruals Deférred income Amounts owed lo group undertakings Taxation and social security 48.671 160,108 35,299 28,758 8.952 35,299 162.396 32,273 10.000 16,250 10,017 10,000 50,000 19,451 19.842 19.842 19,451 263.920 92.851 224,120 105.718 Page. 25
Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2022 16 Provision for liabilities Group Deferred lax Total At 1 January 2022 Increase (decrease) in existing provisions Al 31 December 2022 24.127 18.174 5.953 24,127 18,174 5.953 Deferred tax Deferred tax assets and liabililies= Asset Liability 2022 Other timing differenrEs 5.953 5.953 2021 Other timing differences 24,127 24,127 Page. 26
Fly Navy Heritsge Trust Limited Notes to the Financial Slatements For the Year Ended 31 December 2022 17 Summary of movement in funds Openlng Balance Ineomrng Resour$ Outgolng Resourus Transfors Closing Balance Group Unrestricted funds General ReValuat)n reserve 4.719.120 99.998 2,226.045 {2.176.382) {60.CKK)) 2.2ChJ,000 6,968.783 39.998 Restricted funds Transitional funds RNVR Naval Club Seafire 260.462 400.000 200.tKM) (260.4621 (112.8411 287.159 2.000.IJ)O (2.200,000) 6.819.118 3.086.507 {2,609,685) 7,295.940 Opening Balance Incoming Resources Outgoing Resources Transfvrs Closing Balan¢e Charity Unrestricted funds General 4.037.167 2.700.284 {1.989.5711 2.200,000 6,947,880 Restricted funds Transitional funds RNVR Naval Club Seafire 260.462 400,(KJO 200.1)JO {260.4621 (112,8411 287.159 2.000.000 (2.200,0001 6,037,167 3,560.746 (2.362,874) 7,235.039 Unrestricted funds The Trustees general funds that have been received with no specific purpose other to be used for the organisalions charitable objectives. Restricted funds The Swordfish W5856 fund represents monies received from HM Treasury's LIBOR Fines Fund specifically for the provision of onward funding to the Royal Navy Histori¢ FIht for the essential maintenance, repair and operation of Swordfish W5856. Transitional funds relates to income received for the maintenance of aircraft transferred to the charity. The transfer of funds relates to transitional funds used to purchase fixed assets. The funds received from the Culture recovery fund were to cover overtad cosls to support the charity through Ihe pandemic. The RNVR Naval Club fund represent5 monies received from a donation towards Swordfish and Chipmunk projects. The Seafire fund represents monies received from a donation for the purchase and upkeep of a new Seafire airuaft. Page. 27
Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2022 Summary of movement in funds - 2021 Opening Balance Incorning Resources Outgoing Resources Transfers Closing Balance Group Unrestricted funds General ReValuatn reserve 204.544 99.998 5,837.403 11.396.058) 73.231 4,719,120 99,998 Restricted funds Transitional funds Culture Recovery Fund Swordfish W5856 Sea Vixen Seafire 541.006 140.200 (467,775) (148.595) {88,014) (500) {73,231) 8.395 88.014 500 2.fX)O,000 2.000,000 400.951 8,519.109 (2.100.942) 6.819,118 Openlng Balance Incoming Resources Outgoing Resources Transfers Closing Balance Charity Unrestrict General funds 332.773 4.703.572 (1.072.409) 73.231 4,037.167 Restricted funds Transf(ional funds Cullure recovery fund Swordfish W5856 Se8 Vixen Seafire 541.006 140.200 (467,7751 (148,5951 (88.0141 (500) (73.231 > 8,395 88.014 500 2,0,000 2,000.000 429.182 7.385,278 (1,777.2931 6,037.167 Page. 28
Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2022 18 Analysis of assets between funds Tangible Flxed Assets Invostments Net Currgnt Assets Provisions Total Group Unrestricted funds Restricted funds 5.187.525 1.827.209 287.159 (5,953} 7,008.781 287.159 As at 31 December 2022 5.187.525 2.114.368 {5.953) 7.295.940 As at 31 Oecember 2021 3.253.652 3.589.593 (24.127) 6.819.118 Tangible Fixed Assets Investments Net Currenl Assels Provisions Total Charity Unrestricted funds Restricted funds 5.123.712 1.824,167 287.159 6.947.880 287.159 As at 31 December 2022 5.123.712 2.111.326 7,235.039 As at 31 December 2021 3,126.670 2,910.496 6.037,167 Page. 29
Fly Navy Heritage Trust Limited Notes to the Financial Staternents For the Year Ended 31 December 2022 19 Related parties There are no related party transactions in the reporting period that require disclosure. Page. 30