# **THE ROYAL AIR FORCE RUGBY UNION** **ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020** **CHARITY REGISTRATION No: 1133022 COMPANY REGISTRATION No: 07024335** Independent Examiners Ltd Unit 2 The Broadbridge Business Centre Delling Lane Bosham Chichester PO18 8NF ## **THE ROYAL AIR FORCE RUGBY UNION (A COMPANY LIMITED BY GUARANTEE)** ## **CONTENTS** |Page 3|Reference and Administrative Details of the Company.| |---|---| |Pages 4 to 9|Report of the Directors.| |Page 10|Statement of Financial Activities.| |Page 11|Balance Sheet.| |Pages 12 to 17|Notes to the Financial Statements.| |Page 18|Independent Examiners Report on the Accounts.| 2 ## **THE ROYAL AIR FORCE RUGBY UNION (A COMPANY LIMITED BY GUARANTEE)** # **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31ST DECEMBER 2020** ## **START OF FINANCIAL YEAR** 1st January 2020 **END OF FINANCIAL YEAR** 31st December 2020 ## **TRUSTEE DIRECTORS** Air Vice-Marshal Paul Godfrey (Chairman) Air Commodore Stephen Lushington (Chairman) (resigned 19 April 2021) Air Commodore Mark Chappell (Director of Community Rugby) Wing Commander Peter McAdam (Treasurer) (appointed 12 July 2021) Squadron Leader Chris Cornish (resigned 12 July 2021) Wing Commander Jonathan Latimer (Honorary Secretary) (appointed 19 April 2021) Group Captain Allen Lewis (resigned 19 April 2021) Wing Commander Erica Ferguson (Governance) Air Commodore Paul Rose (Director of Representative Rugby) Group Captain Blythe Crawford (Director Support) (appointed 19 April 2021) Group Captain Mark Jackson (Director Engagement) (appointed 19 April 2021) ## **SECRETARY** **SECRETARY** Erica Ferguson **COMPANY REGISTERED NUMBER** 07024335 **CHARITY REGISTERED NUMBER** 1133022 **DATE OF INCORPORATION** 20th September 2009 ## **REGISTERED OFFICE** Royal Air Force Sports Federation, Kermode Hall, RAF Halton, Aylesbury, Bucks, HP22 5AS. ## **BANKERS** Royal Bank of Scotland, Holt Military Banking, 200 Fowler Avenue, Fowler Business Park, Farnborough, Hampshire. GU14 7JP. ## **INDEPENDENT EXAMINER** P B Robinson MAAT FCIE, Independent Examiners Ltd, Unit 2, The Broadbridge Business Centre, Delling Lane, Chichester, West Sussex PO18 8NF 3 ## **THE ROYAL AIR FORCE RUGBY UNION (A COMPANY LIMITED BY GUARANTEE)** ## **REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31ST DECEMBER 2020** The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their report together with the financial statements of The Royal Air Force Rugby Union (the company) for the 12 months from 1 January 2020 to 31 December 2020. The Trustees confirm that the Report and financial statements of the company comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015). Since the company qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **• CONSTITUTION** The Royal Air Force Rugby Union is a company limited by guarantee governed by its Memorandum and Articles of Association dated 20 September 2009. It is registered with the Charities Commission, registered number 1133022. ## **• METHOD OF APPOINTMENT OR ELECTION OF TRUSTEES** The Directors of the Company are also Charity Trustees for the purposes of charity law and under the Company's Articles are known as members of the Board of Trustees. The Charity is currently required to appoint a minimum of 3, but no more than 9 Trustees to the Board. It is stipulated that the nomination of a Trustee to the position of Chairman must additionally be approved by the AOC 22 Group as head of RAF Sport. Furthermore, the Articles of Association specify that with effect from 3 years after the incorporation of the Company, 20 September 2012 in this case, then one third of the Trustees must retire from the office annually. A retiring trustee who remains qualified may be re-appointed by the other Trustees. ## **• NOMINATION, APPOINTMENT AND TRAINING OF NEW TRUSTEES** In respect of the recruitment and training of new Trustees, a nominations sub-committee has been created in order that potential Trustee candidates can be brought to the attention of the Board. A transparent and broadly advertised process of recruitment is undertaken for all positions within the sub-committees of the Charity, and new Trustees are elected by the existing Board. All trustees are required to undertake training on appointment in the form of a number of briefings from RAF Sport Headquarters and the Company Secretary of the Royal Air Force Rugby Union, and are required to familiarise themselves with the Company's Memorandum and Articles of Association and the Charity Commission publication "The Essential Trustee". ## **• ORGANISATIONAL STRUCTURE AND DECISION MAKING** The Charity is affiliated to the National Governing Body for the sport, the Rugby Football Union, and holds the status of Constituent Body. The Charity is therefore bound by the laws, regulations and protocols of the Independent Rugby Board and the Rugby Football Union, with all administration and governance of, and participation in Rugby Union activities adhering to National Governing Body guidelines. In addition, the charity is subject to the policies and protocols of the Ministry of Defence and the Royal Air Force in relation to accountancy procedures, funding and sponsorship of Service sport, and the participation of Servicemen and women and Ministry of Defence Civil Servants in competitive sports activities. ## **OPERATIONAL MANAGEMENT** With regards to the day-to-day operations of the Royal Air Force Rugby Union, the Board of Trustees provides overall direction and objectives to the Charity's sub-committees who are responsible for the delivery of those objectives. The Section Director from each of the functional sub-committees; along with the Board of Trustees, the Charity's Council Member to the Rugby Football Union and the Players' Representative; form the Royal Air Force Rugby Union Operations Board, which is responsible for coordinating all aspects of Rugby Union in the Service and which meets on a bi-monthly basis. 4 ## **THE ROYAL AIR FORCE RUGBY UNION** ## **(A COMPANY LIMITED BY GUARANTEE)** ## **REPORT OF THE DIRECTORS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2020** ## **THE OPERATIONS BOARD COMPRISES:** Chairman (Trustee and Company Director) Deputy Chairman and Director of Representative Rugby (Trustee and Company Director) Honorary Treasurer and Director of Finance (Trustee and Company Director) Honorary Secretary (Trustee and Company Director) Director of Corporate (Trustee and Company Director) Director of Community Rugby and Development (Trustee and Company Director) Rugby Football Union Council Member Chief of Staff ## **REPRESENTATIVE PILLAR** Director First XV Men's Squad Director First XV Women's Squad Director Veterans' Squad Director Academy Squad Director Under 23s Squad Director Spitfire Sevens Squad Director of the Royal Air Force Rugby Union Referees' Society Honorary Medical Adviser The sub-committee Directors are provided with clear objectives, priorities and limitations and a budget is agreed for their activities. Whilst each sub-committee is allocated a Trustee to provide oversight and guidance, the operation of the functional sections is generally a democratic process undertaken by the sub-committees, without undue or unnecessary interference from the Board. The over-arching administrative and governance requirements and adherence to regulations is coordinated by the Royal Air Force Rugby Union Honorary Secretary, who acts as the conduit between the Charity and the Rugby Football Union and ensures that all the Charity's activities comply with the regulation and guidance of the National Governing Body. ## **RISK MANAGEMENT** As part of the Trustees' responsibility in relation to protecting the Charity from risk, potential threats to the output of the Charity have been identified by the Trustees and contingency plans have been put in place to mitigate against potential damage. The Trustees regularly examine the risk register which records the major strategic, business and operational risks that the charity faces. Trustees carefully monitor the income and expenditure at Management Committee and Board level to ensure financial stability and sustainability. The Risk Register is updated regularly and used to identify early warning of trends and to make strategic decisions at Trustee meetings. ## **OBJECTIVES AND ACTIVITIES** The Royal Air Force Rugby Union Association (RAFRU) has continued to support players, teams and influence Rugby development despite the Covid pandemic. Building on the very successful previous playing seasons the RAFRU continues to work hard to identify new opportunities and ways to drive forward improvements across all activities to meet its charitable objects. All activity is undertaken against the backdrop of ‘best practice, Rugby Football Union (RFU) governance and the requirements of the Royal Air Force. Our focus remains to increase the numbers of people of taking part in the sport – be that playing, coaching or officiating. This is directly aligned with the RAFRU’s charitable objects of: ‘ _promoting the efficiency of Her Majesty’s Armed Forces by increasing physical fitness, fostering the espirit de corps and raising morale of members of the Royal Air Force and other services through the promotion and encouragement in the playing of rugby union football’_ . 5 ## **THE ROYAL AIR FORCE RUGBY UNION (A COMPANY LIMITED BY GUARANTEE)** ## **REPORT OF THE DIRECTORS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2020** ## **OBJECTIVES AND ACTIVITIES (continued)** As such, the RAFRU is a vibrant organisation that has seen the numbers of people commit interest despite the ongoing restrictions. We have taken the time to review our outreach programmes and realise our ambition to grow. The RAFRU has fielded teams at all levels of competition and there have been some remarkable successes on the pitch. Our focus in 2020 has been to keep everyone engaged and continue education for the players, coaches, officials, medics and the Trustees. Underpinning the Associations success are robust governance structures and mechanisms that have focused on financial sustainability and long-term planning. Consequently, this pause in playing activity has allowed further reflection and realignment to make the Association more effective and efficient than ever before and allowing review of our outreach programmes – undoubtedly the most important activity for the long-term viability for the RAFRU’s success. The Trustees consider that they have complied with the duty in section 17(5) of the 2011 Charities Act to have due regard to Charity Commission guidance on public benefit. ## **ACHIEVEMENTS AND PERFORMANCE** Activity on the pitch during 2020, like all areas of life was heavily impacted by the COVID-19 pandemic. Prior to COVID19, all teams were well prepared, brimming with confidence and raring to go into what would have been a hugely competitive season. Sadly, the global pandemic curbed normal life and all sporting activities which prevented us from translating our progress and standard of play onto the pitch. Whilst not busy on the field, our personnel were very much involved in the Government's COVID Response and wider fundraising efforts to help those less fortunate than ourselves. Bar one fixture in early 2020, all UK matches in 2020 were cancelled with teams implementing adaptive training regimes as law variations and the RFU Return to Play Roadmap came into effect. We continued to forge links with Premiership clubs and through our RFU Representative, our engagement with England was both continuous and increasingly more productive. RAFRU’s annual ‘Girls Festival of Rugby’ at RAF Halton was sadly, also cancelled but it will return in 2021 bigger and better with over 1000 girls aged between 14 - 18 from a variety of rugby clubs taking part. Despite COVID-19, RAFRU’s outreach programme, RAF Akrotiri’s Mini and Youth section continues to thrive and has seen a rise in the number of young players playing the sport weekly. The number of RAFRU listed clubs is 37 and includes 4 Trade Teams and 4 Divisional Teams across the Community game. Trade Teams are made up of players from a ‘profession’ rather than geographic location and they continue to plan for post COVID activity; they include RAF Firefighters, RAF Police, RAF Movers and the RAF Regiment. Again, such opportunities provide many alternative playing and coaching platforms, and serves to increase the numbers of players taking part in rugby union. Whilst the number of people currently participating in Rugby Union post COVID-19 is unclear, the excellent work and engagement off field suggests a spike in numbers of those playing, coaching or supporting rugby for the first time once activity resumes. RAF station and club rugby involves some 1000 male players and 100 (and growing) female players. They are supported by 80 volunteer qualified coaches as well as 20 strength and conditioning coaches. RAFRUs efforts off the pitch remained strong and focused throughout 2020 with the Operations Board taking the opportunity during the down time to develop our future strategy and implement several internal organisational and personality changes. We continued to shape our 5-yr vision and professionalise all corners of RAFRU with our ‘Build Back Stronger’ approach providing the springboard, post COVID into 2021, to fulfil our vision. Our focus will be the community level, where we hope to grow our involvement and player registration. At the Representative level we have set ambitious performance measures of effectiveness to determine our success. Whilst we intend to test and stretch all those involved with RAFRU, we have ensured the resource and support across all pillars is in place to achieve it. We saw immediate benefits following the appointment of a Director of Sports Science in mid-2020; a new and exciting role whose focus is on Strength & Conditioning, data analytics, technology exploitation and introducing best practices surrounding sport psychology and human performance. This is the right direction of travel at the higher levels, but across all corners, RAFRU will ensure the game is fun, competitive and sustainable at every level. 6 ## **THE ROYAL AIR FORCE RUGBY UNION (A COMPANY LIMITED BY GUARANTEE)** ## **REPORT OF THE DIRECTORS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2020** ## **ACHIEVEMENTS AND PERFORMANCE (Continued)** Social media continue to be RAFRUs main publicity outlet and it has been a resounding success for all pillars of the game. Not only has it enabled the Association to stay in touch with everyone involved with the many activities but it has also been an excellent platform for people looking for information as to how they can get involved with rugby union. Social media’s utility is highlighted by the following statistics: **----- Start of picture text -----**
Twitter
 13,500 followers
 Proactive Twitter interaction with other RAF Sports and Army
Facebook
 Used more for the 30-50 demographic
Instagram
 Relatively new platform
 6,200 Followers
**----- End of picture text -----**
Looking forward, the Women’s team will seek to develop new players, support new management team members, retain the Inter-Services Trophy. Despite the COVIS-19 layoff, they are the reigning Women’s Inter-Services Champions and we will use this success to capitalise in the growth of women’s rugby, be it playing, coaching or refereeing. Much of the Women’s 1[st ] XV success is centred on the fact that all players play Premiership Rugby and there are approximately 5 international players within their ranks. Women’s Community lead appointed with a focus to develop women’s grass root teams. The Men’s Academy and U23s squads continue to hone the ‘player pathway’ which is aimed at drawing players from Community Pillar, through U23s/Academy into the Men’s 1st XV. Perhaps the most recognisable RAFRU ‘brand’ is the Men’s 7s Squad. Despite not participating in any tournaments in 2020, they continued to support many charitable causes. Looking to the future, the 7s will focus on developing current and recruiting new players and, seek to establish an annual IS 7s tournament. The Men’s 1[st] XV saw 2020 as a re-building opportunity with many new players and old ones moving into coaching roles. Improvements to management cohesion and implementation of the 5yr strategy provided a sound baseline for the 2021/2 season. aspirations for over 50% of the senior side to be playing at Level 4 or above and new uncapped players being brought into the fold. Beaten by both the RN and Army during the IS campaign, much of the focus has been on putting in place the structure, both on and off the pitch, to build for coming seasons. In particular, there has been much intellectual investment in how to improve the management of the squad and the early identification new up and coming new players. Again this links into the ‘player pathway’ and outreach programmes. 7 ## **THE ROYAL AIR FORCE RUGBY UNION (A COMPANY LIMITED BY GUARANTEE)** ## **REPORT OF THE DIRECTORS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2020** ## **ACHIEVEMENTS AND PERFORMANCE (Continued)** The RAFRU is incredibly well supported by a dedicated cadre of volunteers and officials. Late 2020, following the easing of lockdown 2.0, the RAFRURS developed six new match officials through coaching and training courses. The development pathway for referees within RAFRU continues to be developed in order to identify match officials linked to specific RAFRU Representative sides. The medical investment provided continuous improvement through innovation and liaison with professional bodies and player safety continued to dominate through RFU Liaison and medical advice. On the corporate front, a clear 5yr financial plan allowed greater empowerment and team responsibility with key ambassadors and SLT remaining engaged with sponsors. RAFRU is incredibly proud to work with a range of companies all striving for excellence and have formed lasting relationships that are reflective of our values and strategic interests; proving that success is not just a transaction but an enduring relationship. All the above activity combines to ensure RAFRU continues to meet its objects of: ‘ _promoting the efficiency of Her Majesty’s Armed Forces by increasing physical fitness, fostering the espirit de corps and raising morale of members of the Royal Air Force and other services through the promotion and encouragement in the playing of rugby union football’_ . ## **FINANCIAL REVIEW** 2020 was an exceptional year due to the Covid-19 pandemic. Income was down to £223,495 from £348,229, primarily due to lower sponsorship income of £161,175 (2019: £265,883). Expenditure was also reduced at £133,461 (2019: £171,415) resulting in a reduced excess of income over expenditure of £90,034 (2019: £176,814). Retained reserves remain buoyant at £383,189, up from £293,155 in 2019. During the period under review the company incurred a late registration for VAT penalty of £8,745. The VAT position has been resolved and normalised going forward. ## **• PRINCIPAL FUNDING SOURCES** The principal funding for the RAFRU is provisioned through sponsorship deals with Industry partners. These are of great benefit and allocate funding to specific pillars and for the broader operating costs associated with the RAFRU. Funding is received from the Royal Air Force Central Fund and allocated to Operating Costs, New Member Engagement, Overseas Visits, Training Camps and Kit and Equipment. Players can also attract personal funding dependent on the level of playing ability. ## **• GOING CONCERN** After making appropriate enquiries, the trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies. 8 THE ROYAL AIR FORCE RUGBY UNION (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE DIRECTORS (contlnued) FOR THE YEAR ENDED 31ST DECEMBER 2020 • RESERVES POLICY The taryet rnlnlrnum Operatlng Reserve Fund for the Royal Alr Force Rugby Unlon Is £30.000. equal to thre• months of average operating costs. The calculatlon of average monthly operatlng costs includes all recurrlngi predlrtoble expenses. based on the annual budget forecasts. Depreclatlon and other non-tèsh expenses ore not included In the calculatlon. The calculatlon of average monthly expenses also excludes some expenses. Copltal purchases. for example klt and equiprnent and medlcal item5 are reduced by on¢ thlrd of the annual total. Corporate Development Costs are also reduced to one thlrd of the annual total. The amount ef the Operatlng Reserye Fund target mlnlmum should be calculated each year after approval of the Financlal Plan and reported to the Managlng Trustee. STATEMENT OF DIREcfoRS' RESPONSIBILITIES The char￿tIeS Act and the Companles Art requlre the Board of Trustees to prepare ftnanclèl ststements for each financlal ppno(J %Yhlch give a true and falr view of the state of affalrs of the chaflty as at the end of the nnanclal perfod and of the surplus er deficit ef the charlty. In preparing tIK)se financièl ststements the Board is requlred to • select sultable accountlng wllcles and then apply them conslstentlyi • make lud9ements and estlmates that are reasonable ond prudent.. and prepare the finènclal statements on the golng concern basls unless It Is Inapproprfate to pre5urne that the charity wlll contlnue In buslnes5. • state ¥Yhether 4ppllcable accounting Standèrds and statements of recomrnended pr¥tlce have been followed. subjett to any materfal departures dlsclosed and explalned In the ftnanclal statemefits: The trustees are also respon51ble for maintaining adequate accountlng records whlch dlsclose wlth reasonable accuracy at any tlme the flnanclal positlen of the charSty and whlch are sufficlent to show and explaln the charSty's transaction5 and enable them to ensure that the financial ststements comply wlth the Cornpanles Act 2006 and comply wlth regulation5 made under the Chanties Art. They are also responsible for safeguarding the assets of the charity and hence ft)r taking reasonable steps for the preventlon and detertlon of fraud and other Irregularitle5. The trustees are also responslble for the contsnts of the trustees, reKX)rt, and the responslblllty of the Independent examlner In relatlon to the trustee5' report Is Ilmlted to examlnlng the retx>rt and ensurlng that, on the face of the report. there are no InconsI5tencles wlth the figure5 dlsclosed In the finandal statements. These accounts have been pfypared In attordance wlth the provSslons appllcable to companles Subject to the small compaTrle5 regime. l appfove the attached statement of flnaTrclal actSvltles and balance sheet for the year ended 31st Decernber 2020, and conflrm that I have made avallabje all InformatSon necessary for Its preparatlon. Oate.. Slgnature . PRINT IIAME.. ## **THE ROYAL AIR FORCE RUGBY UNION (A COMPANY LIMITED BY GUARANTEE)** ## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2020** Incorporating income and expenditure account |**Note**
**INCOME**
Donations & Legacies
**3(a)**
Charitable Activities
**3(b)**
Other Trading Activities
**3(c)**
**TOTAL INCOME**
**EXPENSES**
Charitable Activities
**4**
**TOTAL EXPENSES**
**NET INCOMING/ (OUTGOING)**
Total Funds Brought Forward
Transfers between funds
Prior Year Adjustment
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
Restricted
**TOTAL**
**TOTAL**
Funds
Funds
**2020**
**2019**
£
£
**£**
**£**
32,574
14,184
46,758
34,633
3,172
8,948
12,120
40,079
154,907
9,710
164,617
273,517
**190,653**
**32,842**
**223,495**
**348,229**
82,848
50,613
133,461
171,415
**82,848**
**50,613**
**133,461**
**171,415**
**107,805**
**(17,771)**
**90,034**
**176,814**
220,092
73,063
293,155
116,341
(41,602)
41,602
-
-
-
-
-
-
**286,295**
**96,894**
**383,189**
**293,155**| |---|---| Movements on all reserves and all recognised gains and losses are shown above. All of the organisation's operations are classed as continuing. The notes on pages 12 to 17 form part of these financial statements. 10 THE ROYAL AIR FORCE RUGBY UNION (A COMPANY LIMITED BY GUARANTEE) BALANCE SHEET AS AT 31ST DECEMBER 2020 un￿￿trIcted Restrlrted Funds FL5nds 31-Dec-20 31-Detr19 Tot•1 Total Not• Flxed As*•ts 740 Tangible assets 8,040 8,040 Current Assets stock and Work In prog￿$ rjebtors and Prepayments sh at bank and In hand 80,346 316,453 18,810 332,177 80.346 219,559 io 96,894 Total Curr•nt Asset• 299 905 396 799 350 987 Credltom: ￿Ounts 1o11ing d￿wIthin OT* year li 21,650 21,650 58,572 NET ASSETS 286 295 383 189 293 IS5 FUNDS OF THE CHARITY 286.295 286,295 220,092 General Funds Kestritted Funds 96,894 96.894 73.063 293 155 TOTAL FUNDS 286 295 383 189 DIREcfoRS' RESPOP4SIJZLITIES.. The dlrectors are Satisfied that for the year ended on 31st Decernber 2020 the charStable company was entbtled to exemption from the requirement to obtaln an audlt under sectlon 477 of the Cornpanles Art 2006 and that no rnember or members have requlred the company te obtaln an audit of Its accounts for the year In questlon In accordance wlth 5ectlen 476 of the Act. However, In accordance wlth 5ettion 145 tsf the Charities Act 2011, the accounts have been examlned by an Independent Exarniner whose report appears on page 18. The dlrectors aCk[￿lledge thelr re5ponslbllSty for complying wlth the requ1￿ments of the Companles Art 2006 wlth respect to acts)untlng records and the p￿paratIon of flnanclol statements. The direttors ackfiov41edge thelr responslblllty for ensuring that the company keep5 proper aceountlng records whlch comply wlth sectSon 386 of the Act and for preparing financial statements whlch glve a true and falr vlew of the state of affaits of the company as at the end of the flnanclal pertod and If its profit and 105s for the flnanclal perlod In accordante wlth the requ1￿Ments of sectlon5 394 and 395 and which otherwlse comply wlth the requlrements of ltte Companles Art 2006 relating to actounts, 50 far os appllcèble to the company. These financlal State￿nts have tyeen prepared ITh accordance with the provlslons appllcable to companles sublert to the small companles, reglrne. Approved by the Boafl of Dlrectofs on ..... Slgned on thelr behalf bv PRI￿ PIAME., 11 ## **THE ROYAL AIR FORCE RUGBY UNION (A COMPANY LIMITED BY GUARANTEE)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020** ## **Basis of preparation** The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - Charities SORP (FRS102)) and incorporating update bulletin 1, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Companies Act 2006. Advantage has been taken of Section 396(5) of The Companies Act 2006 to allow the format of the financial statements to be adapted to reflect the special nature of the charity's operation and in order to comply with the requirements of the SORP. The company has taken advantage of the exemption in Financial Reporting Standard No 1 from the requirement to produce a cash flow statement. The charity meets the definition of a public benefit entity under FRS 102. ## **Changes in Accounting Policies and Previous Accounts** There has been no change to the accounting policies (variation rules and methods of accounting) since last year, and no changes to the previous accounts. The particular accounting policies adopted are set out below. ## **1. ACCOUNTING POLICIES** ## **Income** ## _Recognition of Incoming Resources_ These are included in the Statement of Financial Activities (SOFA) when: - the charity becomes entitled to the resources; - it is more likely than not that the charity will receive the resources; and - the monetary value can be measured with sufficient reliability. ## _Offsetting_ There has been no offsetting of assets and liabilities, or income and expenses, unless required or permitted by the FRS 102 SORP or FRS 102. ## _Grants and Donations_ Grants and Donations are only included in the SOFA when the general income recognition criteria are met (5.10 to 5.12 FRS 102 SORP). ## _Contractual Income and Performance Related Grants_ This is only included in the SOFA once the charity has provided the related goods or services or met the performance related conditions. ## _Gifts in Kind_ Gifts in kind are accounted for at a reasonable estimate of their value to the charity or the amount actually realised. Gifts in kind for sale or distribution are included in the accounts as gifts only when sold or distributed by the charity. Gifts in kind for use by the charity are included in the SOFA as incoming resources when receivable. 12 ## **THE ROYAL AIR FORCE RUGBY UNION** ## **(A COMPANY LIMITED BY GUARANTEE)** ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2020** ## **1. ACCOUNTING POLICIES (continued)** ## **Income (continued)** ## _Volunteer Help_ The value of any voluntary help received is not included in the accounts but is described in the Directors' annual report. ## _Investment Income_ This is included in the accounts when receivable. ## **Expenditure and Liabilities** Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out resources and the amount of the obligation can be measured with reasonable certainty. ## **Assets** ## _Fixed Assets_ These are capitalised if they can be used for more than one year, and cost at least £500. They are valued at cost or, if gifted, at the value to the charity on receipt. ## _Depreciation Expense_ Depreciation is calculated at a rate to write off the cost of tangible fixed assets on a straight line basis over their estimated useful lives. The rates applied per annum are as follows: |Equipment
20% - 33%
Motor Vehicle
33%
**2. TANGIBLE FIXED ASSETS**
(all unrestricted)
Cost
01-Jan-20
Additions
Disposals
Cost at
31-Dec-20
Depreciation
01-Jan-20
Charge
Disposals
Depreciation at
31-Dec-20
**Net Book Value**
31-Dec-20
Net Book Value
31-Dec-19|Motor
Equipment
Vehicle
**Total**
£
£
**£**
1,200
-
1,200
8,310
3,000
11,310
-
-
-
9,510
3,000
12,510
460
460
3,010
1,000
4,010
-
-
3,470
1,000
4,470
**6,040**
**2,000**
**8,040**
740
-
740| |---|---| The annual commitments under non-cancellable operating leases and capital commitments are as follows: 31-Dec-20 Nil 31-Dec-19 Nil 13 ## **THE ROYAL AIR FORCE RUGBY UNION (A COMPANY LIMITED BY GUARANTEE)** ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2020** ## **3. INCOME** |**(a) Donations and Legacies**
RAF Central Fund Grant
RAF Sports Federation Grant
Other Grants
**(b) Charitable Activities**
Personal Contributions/Membership
Inter Services
Miscellaneous
**(c) Other Trading Activities**
Sponsorship
Retail Sales
**4. EXPENDITURE**
Overseas Visits
Kit & Equipment
Inter Services
Operating Costs
Sponsorship Expense
Other Vice Presidents' Costs
Other 7s Costs
Other Women's Costs
Other Veterans' Costs
RAF Sports Federation Costs
Retail Cost of Sales
Miscellaneous
VAT Penalty
Depreciation
**5. DETAILS OF CERTAIN TYPES OF EXPENDITURE**
Included in Operating Costs
Independent examiner’s fees|Unrestricted
Restricted
Funds
Funds
-
13,284
-
-
32,574
900
**32,574**
**14,184**
3,172
8,948
-
-
-
-
**3,172**
**8,948**
152,000
9,175
2,907
535
**154,907**
**9,710**
**190,653**
**32,842**
Unrestricted
Restricted
Funds
Funds
2,781
14,321
20,676
22,627
14,411
-
26,362
3,036
2,175
-
-
978
-
2,802
-
5,523
-
172
-
-
3,928
914
-
-
8,745
-
3,770
240
**82,848**
**50,613**|**Total**
**Total**
**2020**
**2019**
13,284
17,006
-
950
33,474
16,677
**46,758**
**34,633**
12,120
19,670
-
20,566
-
(157)
**12,120**
**40,079**
161,175
265,883
3,442
7,634
**164,617**
**273,517**
**223,495**
**348,229**
**Total**
**Total**
**2020**
**2019**
17,102
18,861
43,303
33,704
14,411
49,277
29,398
12,915
2,175
15,540
978
11,437
2,802
2,136
5,523
9,130
172
-
-
950
4,842
6,390
-
10,835
8,745
-
4,010
240
**133,461**
**171,415**
**2020**
**2019**
£
£
1,140
1,717
**1,140**
**1,717**| |---|---|---| 14 ## **THE ROYAL AIR FORCE RUGBY UNION** ## **(A COMPANY LIMITED BY GUARANTEE)** ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2020** ## **6. RESTRICTED FUNDS** ## **CURRENT YEAR** |Charitable Trust Grant
RAF Central Fund
7's Fund
Women's Fund
Veterans' Fund
Vice Presidents' Fund|Balance
Balance
01-Jan-20
Income
Expenditure
Transfers
31-Dec-20
**£**
**£**
**£**
**£**
**£**
699
-
-
(699)
-
-
13,284
13,284
-
-
30,496
3,250
12,836
10,034
30,944
10,048
7,675
14,096
27,805
31,432
24,648
1,200
7,151
4,462
23,159
7,172
7,433
3,246
-
11,359
**73,063**
**32,842**
**50,613**
**41,602**
**96,894**| |---|---| Transfers between funds represent annual internal grants from general funds |Charitable Trust Grant
RAF Central Fund
RAF Central Fund 7's
RAF Sports Fed Grant
7's Fund
Women's Fund
Veterans' Fund
Vice Presidents' Fund|Balance
Balance
01-Jan-19
Income
Expenditure
Transfers
31-Dec-19
**£**
**£**
**£**
**£**
**£**
939
-
240
-
699
410
17,006
17,416
-
-
357
-
-
(357)
-
-
950
950
-
-
25,874
15,750
13,289
2,161
30,496
11,874
21,785
23,611
-
10,048
3,798
22,900
2,050
-
24,648
5,731
12,878
11,437
-
7,172
**48,983**
**91,269**
**68,993**
**1,804**
**73,063**
**PREVIOUS YEAR**| |---|---| Charitable Trust Grant - to be used for specific equipment/services purchases by RAFRU. Central Fund - to be used for operating costs, kit and equipment, overseas visits and development activities of RAFRU. RAF Sports Federation Grant - to be used for specific equipment/services purchases by RAFRU. 7s - fund to be used to run the RAF Rugby Union 7's (Spitfire) Squad. Womens - fund to be used to run the RAF Rugby Union Women's Squad. Veterans - fund to be used to run the RAF Rugby Union Venterans' Squad. Vice Presidents - fund to be used to foster the esprit de corps between retired and serving members of RAFRU by organising rugby related events for members of the Association and their guests. ## **7. STAFF COSTS AND NUMBERS** There are no staff paid by The Royal Air Force Rugby Union Association (2019: Nil). The Royal Air Force donate the services of a staff member, as the Rugby Development Officer, in support of the RFU funding received as a Constituent Body. ## **8. DIRECTORS AND OTHER RELATED PARTIES** No payments were made to directors or any persons connected with them during this financial period. No material transaction took place between the organisation and a trustee or any person connected with them. 15 ## **THE ROYAL AIR FORCE RUGBY UNION (A COMPANY LIMITED BY GUARANTEE)** ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2020** ## **9. DEBTORS AND PREPAYMENTS** |**9. DEBTORS AND PREPAYMENTS**||||| |---|---|---|---|---| ||Unrestricted|Restricted|**Total**|**Total**| ||Fund|Fund|**31-Dec-20**|**31-Dec-19**| ||£|£|**£**|**£**| |Accrued income|-|-|-|-| |Debtors|37,969|-|37,969|185| |Prepayments|42,377|-|42,377|18,625| ||**80,346**|**-**|**80,346**|**18,810**| |**10. CASH AT BANK AND IN HAND**||||| |Cash at Bank|Unrestricted
Fund
£
219,359|Restricted
Fund
£
96,894|**Total**
**31-Dec-20**
**£**
316,253|**Total**
**31-Dec-19**
**£**
331,977| |Cash Float|200
-|-
-|200
-|200
-| |Cash at bank and in hand|**219,559**|**96,894**|**316,453**|**332,177**| |**11. CREDITORS AND ACCRUALS: AMOUNTS FALLING DUE WITHIN ONE YEAR**||||| |Creditors|Unrestricted
Fund
£
20,510|Restricted
Fund
£
-|**Total**
**31-Dec-20**
**£**
20,510|**Total**
**31-Dec-19**
**£**
16,472| |Deferred Income|-|-|-|40,960| |Accrual - Independent Examination|1,140|-|1,140|1,140| ||**21,650**|**-**|**21,650**|**58,572**| |**12. DEFERRED INCOME**||||| |Deferred income brought forward 01/01/20|Sponsorship
24,000|Six Nations
-|Ann. Dinner
16,960|**Total**
40,960| |Utilised in the year|(24,000)|-||(24,000)| |Receipts for Centenary Dinner 2020 (was|-|-|16,960
3,550|16,960
3,550| |postponed to 2021 then cancelled)||||| |Transferred to creditors as refunded in 2021|||(20,510)|(20,510)| |Deferred income as at 31/12/20|**-**|**-**|**-**|**-**| ## **13. RISK ASSESSMENT** The directors actively review the major risks which the charity faces on a regular basis and believe that maintaining the free reserves stated, combined with the annual review of the controls over key financial systems carried out on an annual basis will provide sufficient resources in the event of adverse conditions. The directors have also examined other operational and business risks which they face and confirm that they have established systems to mitigate the significant risks. 16 ## **THE ROYAL AIR FORCE RUGBY UNION (A COMPANY LIMITED BY GUARANTEE)** ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2020** ## **14. RESERVES POLICY** The directors have considered the level of reserves they wish to retain, appropriate to the charity's needs. This is based on the charity's size and the level of financial commitments held. The directors aim to ensure the charity will be able to continue to fulfil its charitable objectives even if there is a temporary shortfall in income or unexpected expenditure. The directors will endeavour not to set aside funds unnecessarily. ## **15. PUBLIC BENEFIT** The charity acknowledges its requirement to demonstrate clearly that it must have charitable purposes or ‘aims’ that are for the public benefit. Details of how the charity has achieved this are provided in the Trustees report. The Trustees confirm that they have paid due regard to the Charity Commission guidance on public benefit before deciding what activities the charity should undertake. 17 ## **THE ROYAL AIR FORCE RUGBY UNION (A COMPANY LIMITED BY GUARANTEE)** ## **INDEPENDENT EXAMINER'S REPORT ON THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020** I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2020. ## **RESPONSIBILITIES AND BASIS OF REPORT** As the charity’s trustees of the Company (who are also the directors of the company for the purposes of company law), you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (“the 2006 Act”). Having satisfied myself that the accounts of the Company are not required to be audited for this year under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (“the 2011 Act”). In carrying out my examination, I have followed the Directions given by the Charity Commission (under section 145(5)(b) of the 2011 Act. The company’s gross income exceeded £250,000 in the previous year and I am qualified to undertake the examination by being a qualified member of The Association of Charity Independent Examiners. ## **INDEPENDENT EXAMINER'S STATEMENT** I have completed my examination. I confirm that no material matters have come to my attention which gives me cause to believe that: - accounting records were not kept in accordance with section 386 of the Companies Act 2006; or - the accounts do not accord with such records; or - the accounts do not comply with relevant accounting requirements under section 396 of the Companies - Act 2006 other than any requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an independent examination; or - the accounts have not been prepared in accordance with the Charities SORP (FRS102). I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. P B Robinson MAAT FCIE Independent Examiners Ltd Unit 2 The Broadbridge Business Centre Delling Lane Bosham Chichester PO18 8NF 26th October 2021 18