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2021-03-31-accounts

Draft Financial Statements at 02 December 2021 at 15:19:06

Charity Registration No. 1140665

Company Registration No. 7033180 (England and Wales)

THE ROYAL AIR FORCE GLIDING AND SOARING ASSOCIATION

OPERATING AS RAFGSA

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

Draft Financial Statements at 02 December 2021 at 15:58:49 THE ROYAL AIR FORCE GLIDING AND SOARING ASSOCIATION OPERATING AS RAFGSA LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Air Vice Marshall John Stringer -
President
Gp Cpt Carl Peters - Chairman
Sqn Ldr Jon Arnold RAF - Fleet
Manager
Wg Cdr Neill Atkins
Flt Lt Luke Dale
Mr Martyn Pike
Sq Ldr Alan Swan
Sqn Ldr Andrew Watson
Fg Off Ben Wightman (Appointed 7 October
2020)
Secretary Wilson (Company Secretaries) Ltd.
Charity number 1140665
Company number 7033180
Principal address RAFGSA Sports Federation
Room 43 Kermode Hall
RAF Halton
Aylesbury
Buckinghamshire
HP22 5PG
Registered office Alexandra House
St Johns Street
Sailsbury
Wiltshire
SP1 2SB
Auditor Cathedral Accountancy Ltd.
4 North Guildry Street
Elgin
Moray
IV30 1JR
Bankers The Royal Bank of Scotland
Holt's Farnborough Branch
Victoria Road
Farnborough
GU4 7 NR
Solicitors Wilson Ltd
Alexandra House
St Johns Street
Salisbury
Wiltshire
SP1 2SB

Draft Financial Statements at 02 December 2021 at 15:58:49 THE ROYAL AIR FORCE GLIDING AND SOARING ASSOCIATION OPERATING AS RAFGSA LEGAL AND ADMINISTRATIVE INFORMATION

Investment advisors

Black Rock PO Box 9036 Chelmsford CM99 2XD

CCLA Investment Management Ltd 80 Cheapside London EC2V 6DX

Draft Financial Statements at 02 December 2021 at 15:58:49 THE ROYAL AIR FORCE GLIDING AND SOARING ASSOCIATION OPERATING AS RAFGSA CONTENTS

Page
Trustees' report 1 - 3
Statement of trustees' responsibilities 4
Independent auditor's report 5 - 7
Statement of financial activities 8
Balance sheet 9 - 10
Notes to the financial statements 11 - 20

Draft Financial Statements at 02 December 2021 at 15:19:06 THE ROYAL AIR FORCE GLIDING AND SOARING ASSOCIATION OPERATING AS RAFGSA TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 MARCH 2021

The trustees present their report and financial statements for the year ended 31 March 2021.

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 Memorandum and Articles of Association and by the Royal Air force Gliding and Soaring Association Handbook, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016)

Objectives and activities

The vision of the Association is to provide an opportunity for RAF personnel to participate in the exhilarating sport of gliding, encouraging personal development and participation in competitive gliding. The mission of the RAFGSA is to enhance the efficiency of the Royal Air Force by providing Service personnel of all ranks the opportunity to participate in the demanding sport of Gliding, thereby encouraging mental and physical resilience and airmindedness among its members. Key to success is a focus on bringing gliding within reach of all members of the RAF. Participation in competitive gliding from basic up to elite is a key tenet of our success.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

During the year the charity continued to provide aircraft and facilities to member clubs and to assist in the provision of hazardous activities training to enable it to achieve its aim as set out in this report. This included the provision of a fleet of 54 aircraft and the provision of a full programme of training courses.

Future plans

The Association is being well supported by the RAF Charitable Fund annual grants in relation to New Member Engagement (NME) activity. This, in concert with the restricted scholarship fund (Malcolm Club Trust), is encouraging new Service personnel to take up the sport and develop those currently serving, through the Go for Solo scheme and instructor training initiatives. In addition to NME, the RAFGSA are working with the RAF's training command to run week long training courses, SOARING EAGLES for Service Personnel, which is providing valuable cash-flow at the club level at no cost to the Association.

The RAFGSA is mid-way through a comprehensive fleet overhaul plan, which has seen it rationalise its overall fleet, and seek approval to use restricted funds to finalise capital expenditure. The Association has been badly affected by the pandemic and resultant impact on the ability of clubs to operate. As such, the Association is keen to capitalise on its refurbished fleet and ensure that between NME and SOARING EAGLE activity, the membership fall is halted and a sustainable operating model is maintained.

Financial review

During the year the charity generated funds of £118.802 including grants received of £26,780 and incurred expenditure of £245,117 including depreciation of £70,918. At 31 March 2020 the charity's unrestricted funds stood at £1,972,605 of which £1,799,367 represented fixed assets. The remaining £173,238 represents net current assets which includes £17,393 designated for specific purposes. Restricted funds stood at £487,814 at 31 March 2021 of which £263,495 represented investments. This level of reserves is necessary to permit the charity to continue to meet its long term objectives and day to day operations.

Strategy

The RAF Sports Federation requires a 5-year rolling financial plan which outlines the Association’s financial position and anticipated position. The plan is maintained by the Treasurer and is compiled in consultation with the Fleet Manager. The plan is ratified by all Trustees at the AGM and represents a rolling assessment of the funds required to support the charity’s capital equipment purchase and operations.

Funding sources

The principal funding sources of the organisation are its member clubs and the RAF Sports Federation. These allow the charity to provide the facilities to enable it to meet its objectives.

Draft Financial Statements at 02 December 2021 at 15:19:06 THE ROYAL AIR FORCE GLIDING AND SOARING ASSOCIATION OPERATING AS RAFGSA TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Taxation

The company is a recognised charity and is not liable to corporation tax on its operations.

Investment policy

The charity has a low tolerance to financial risk and invests only in low risk investments.

The Charity has a broad strategy on identifying risks to its activities. These can be broadly separated into Air Safety risks, Operational risk (including reputational risk) and Financial risk. These risks are managed and mitigated by the Trustees, where appropriate (eg. The Air Safety Member provides expert input as part of the Aviation Duty Holder construct mandated by the Military Aviation Authority). Air Safety working and steering groups are held at least annually and are attended by the RAF Sports Federation to provide a level of oversight and external scrutiny. Operational risk is managed by a clear training and proficiency syllabus, which is in conjunction with the British Gliding Association (BGA). This provides the opportunity to share bestpractice and standardise the Association’s activity with other civilian gliding organisations. The financial risk is minimised by a conservative approach to investment strategy based on maintaining modest returns in low-risk investment vehicles. External, multi-layered scrutiny is achieved by separation of responsibilities, financial oversight by the RAF Sports Federation and an external Audit conducted annually.

It achieves this policy by having clear responsibilities for Health and Safety, specific policy statements for each area, carrying out risk assessments of all activities and by maintaining close working relationships with appropriate specialist personnel, especially fire and medical.

The Association has enjoyed an increasing membership based coupled with some high-yield initiatives, which this year have included Go For Solo, a sponsorship scheme to get 35 junior members of the RAF up to their first solo in a glider. This initiative has used a combination of the Association’s capital reserves in addition to Grant funding and some of the reserved funds to increase the profile of the Association to increase the grassroots Service membership base. In addition to the funded first solo initiative, financial support has been made available more broadly to RAF personnel to undertake instructor upgrade training. Such measures are vital to the Association’s longevity so that a solid cadre of keen, motivated and talented gliding enthusiasts are developed who will represent the Service at the sport of gliding. An ongoing review of the evolving RAF basing strategy is being carried out which will undoubtedly lead to further changes in the Association’s evolving identity to ensure that the local club footprint best supports the Service.

Structure, governance and management

The charity is a company limited by guarantee and registered in England & Wales (number 7033180), it is a registered charity (number 1140665). The financial statements are for the company alone.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Air Vice Marshall John Stringer - President Gp Cpt Carl Peters - Chairman Sqn Ldr Jon Arnold RAF - Fleet Manager Wg Cdr Neill Atkins Flt Lt Luke Dale Chf Tech Paul Moslin (Resigned 7 October 2020) Mr Martyn Pike Sq Ldr Alan Swan Sqn Ldr Andrew Watson Fg Off Ben Wightman (Appointed 7 October 2020)

Draft Financial Statements at 02 December 2021 at 15:19:06 THE ROYAL AIR FORCE GLIDING AND SOARING ASSOCIATION OPERATING AS RAFGSA TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

New trustees are appointed by resolution of the Board. The appointment of the Chairman is subject to the approval of the RAF Sports Federation. Each year one third of the trustees resign, those longest in office retiring first, retiring trustees may be re-appointed by the other trustees.

Training

The RAF Sports Federation provide training support on the roles and responsibilities of a Trustee. The RAF Sports Federation manage the day to day financial activity of the Association, provide advice and support on matters of policy and attend Annual General Meetings to ensure that the Association is executing its responsibilities as a Service sporting association correctly and to provide a level of external scrutiny into the management of the Association.

Organisational structure

The RAFGSA Trustees are responsible for setting and maintaining the RAFGSA Strategy. Trustees are appointed into specific roles to provide clear responsibilities (Treasurer, Secretary, Fleet Manager, etc). Each role is defined by terms of reference in the RAFGSA Handbook. Day to day management of the Association is via the Executive Committee who are all Trustees.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees' report was approved by the Board of Trustees.

..............................

Gp Cpt Carl Peters - Chairman

Trustee Dated: .........................

Draft Financial Statements at 02 December 2021 at 15:58:49 THE ROYAL AIR FORCE GLIDING AND SOARING ASSOCIATION OPERATING AS RAFGSA STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2021

The trustees, who are also the directors of The Royal Air Force Gliding and Soaring Association for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Draft Financial Statements at 02 December 2021 at 15:58:49 THE ROYAL AIR FORCE GLIDING AND SOARING ASSOCIATION OPERATING AS RAFGSA INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF THE ROYAL AIR FORCE GLIDING AND SOARING ASSOCIATION

Opinion

We have audited the financial statements of The Royal Air Force Gliding and Soaring Association (the ‘charity’) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The trustees is responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Draft Financial Statements at 02 December 2021 at 15:58:49 THE ROYAL AIR FORCE GLIDING AND SOARING ASSOCIATION OPERATING AS RAFGSA INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF THE ROYAL AIR FORCE GLIDING AND SOARING ASSOCIATION

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees is responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Draft Financial Statements at 02 December 2021 at 15:58:49 THE ROYAL AIR FORCE GLIDING AND SOARING ASSOCIATION OPERATING AS RAFGSA INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF THE ROYAL AIR FORCE GLIDING AND SOARING ASSOCIATION

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Cathedral Accountancy Ltd.

.........................

Chartered Accountants Statutory Auditor 4 North Guildry Street Elgin Moray IV30 1JR

Cathedral Accountancy Ltd. is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.

Draft Financial Statements at 02 December 2021 at 15:19:06 THE ROYAL AIR FORCE GLIDING AND SOARING ASSOCIATION OPERATING AS RAFGSA STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income and endowments from:
Grants receivable
2
-
26,780
Charitable activities
3
71,616
-
Investments
4
114
8,092
Other income
5
12,200
-
Total income
83,930
34,872
Expenditure on:
Charitable activities
6
214,263
31,816
Other
10
2,090
-
Total resources
expended
216,353
31,816
Net gains/(losses) on
investments
-
45,021
Gross transfers
between funds
-
-
Net movement in funds
(132,423)
48,077
Fund balances at 1
April 2020
2,105,028
439,737
Fund balances at 31
March 2021
1,972,605
487,814		 Total Unrestricted
funds
2021
2020
£
£
26,780
12,945
71,616
109,094
8,206
600
12,200
-
118,802
122,639
246,079
178,228
2,090
2,435
248,169
180,663
45,021
-
-
11,460
(84,346)
(46,564)
2,544,765
2,151,592
2,460,419
2,105,028		 Restricted
funds
2020
£
40,170
-
6,673
-
46,843
18,854
347
19,201
(32,951)
(11,460)
(16,769)
456,506
439,737		 Total
2020
£
53,115
109,094
7,273
-
169,482
197,082
2,782
199,864
(32,951)
-
(63,333)
2,608,098
2,544,765
Grants receivable
2
Charitable activities
3
Investments
4
Other income
5
Total income
Expenditure on:
Charitable activities
6
Other
10
Total resources
expended
Net gains/(losses) on
investments
Gross transfers
between funds
Net movement in funds
Fund balances at 1
April 2020
Fund balances at 31
March 2021

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

Draft Financial Statements at 02 December 2021 at 15:19:06 THE ROYAL AIR FORCE GLIDING AND SOARING ASSOCIATION OPERATING AS RAFGSA BALANCE SHEET

AS AT 31 MARCH 2021

Notes
Fixed assets
Tangible assets
11
Investments
12
Current assets
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within
one year
14
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
15
Unrestricted funds
Designated funds
16
General unrestricted funds		 2021
£
£
1,799,367
263,495
2,062,862
36,249
365,890
402,139
(4,582)
397,557
2,460,419
487,814
(12,993)
1,985,598
1,972,605
2,460,419		 2020
£
£
1,903,085
218,474
2,121,559
75,797
354,275
430,072
(6,866)
423,206
2,544,765
439,737
13,394
2,091,634
2,105,028
2,544,765		 2020
£
£
1,903,085
218,474
2,121,559
75,797
354,275
430,072
(6,866)
423,206
2,544,765
439,737
13,394
2,091,634
2,105,028
2,544,765
2,121,559
423,206
2,544,765
439,737
2,105,028
2,544,765

Draft Financial Statements at 02 December 2021 at 15:19:06

THE ROYAL AIR FORCE GLIDING AND SOARING ASSOCIATION OPERATING AS RAFGSA BALANCE SHEET (CONTINUED)

AS AT 31 MARCH 2021

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2021, although an audit has been carried out under section 144 of the Charities Act 2011.

The trustees acknowledges his responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on .........................

..............................

Gp Cpt Carl Peters - Chairman

Trustee

Company Registration No. 7033180

Draft Financial Statements at 02 December 2021 at 15:58:49 THE ROYAL AIR FORCE GLIDING AND SOARING ASSOCIATION OPERATING AS RAFGSA NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

Charity information

The Royal Air Force Gliding and Soaring Association is a private company limited by guarantee incorporated in England and Wales. The registered office is Alexandra House, St Johns Street, Sailsbury, Wiltshire, SP1 2SB.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Designated funds are amounts which the charity has decided to set aside for specific purposes.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Draft Financial Statements at 02 December 2021 at 15:58:49 THE ROYAL AIR FORCE GLIDING AND SOARING ASSOCIATION OPERATING AS RAFGSA NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

1.5 Resources expended

Income and expenses are included in the financial statements as they become receivable or due.

Expenses include VAT where applicable as the company cannot reclaim it.

Expenditure is recognised on the accruals basis and includes any irrecoverable VAT. Expenditure is recogn when the underlying transaction takes place. Costs are allocated to funds on an actual basis and apportioned on an equitable basis where they relate to more than one fund or heading.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings 10% straight line Aircraft 10% straight line Winches, trailers and other assets 6% and 10% straight line

Expenditure under £1,000 is not capitalised.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.8 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Draft Financial Statements at 02 December 2021 at 15:58:49 THE ROYAL AIR FORCE GLIDING AND SOARING ASSOCIATION OPERATING AS RAFGSA NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

(Continued)

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

2 Grants receivable

Unrestricted
Restricted
funds
funds
2021
2021
£
£
Grants received
-
26,780
Funds received on winding up of ISRG
-
-
-
26,780
For the year ended 31 March 2020
12,945
40,170
Donations and gifts
RAF Central Fund
-
-
RAF Sports Board Lottery
-
-
Other
-
26,780
-
26,780		 Total
2021
£
26,780
-
26,780
-
-
26,780
26,780		 Total
2020
£
40,170
12,945
53,115
53,115
36,762
3,408
-
40,170

Draft Financial Statements at 02 December 2021 at 15:58:49 THE ROYAL AIR FORCE GLIDING AND SOARING ASSOCIATION OPERATING AS RAFGSA NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

3 Charitable activities

Insurance recharged
Capital levy
Maintenance levies
ISRG income
Chilean income		 2021
£
49,819
17,798
3,999
-
-
71,616		 2020
£
73,496
27,068
6,770
760
1,000
109,094

4 Investments

Unrestricted
Restricted
funds
funds
2021
2021
£
£
Income from unlisted
investments
-
8,010
Interest receivable
114
82
114
8,092		 Total Unrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
8,010
-
6,414
196
600
259
8,206
600
6,673		 Total
2020
£
6,414
859
7,273

All income arises from sources within the UK.

5 Other income

Unrestricted Total
funds
2021 2020
£ £
Net gain on disposal of tangible fixed assets 12,200 -

Draft Financial Statements at 02 December 2021 at 15:58:49 THE ROYAL AIR FORCE GLIDING AND SOARING ASSOCIATION OPERATING AS RAFGSA NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

6 Charitable activities

Depreciation and impairment
BGA membership rebates
Insurance
Aircraft repairs and maintenance
Aircraft refurbishment
Trial flights
Expedition costs
ISRG costs
New member engagement
Other expenses relating to charitable activities
Covid support provided to Clubs
Grant funding of activities (see note 7)
Analysis by fund
Unrestricted funds
Restricted funds
7
Grants payable
Grants to member clubs:
Bannerdown roof repair		 2021
£
70,918
3,426
80,911
66,158
-
2,503
100
-
3,183
-
18,880
246,079
-
246,079
214,263
31,816
246,079
2021
£
-		 2020
£
58,763
-
81,335
7,706
31,208
4,956
3,131
2,300
-
52
2,631
192,082
5,000
197,082
178,228
18,854
197,082
2020
£
5,000

8 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

9 Employees

There were no employees during the year and consequently no employee earned over £60,000.

Draft Financial Statements at 02 December 2021 at 15:58:49 THE ROYAL AIR FORCE GLIDING AND SOARING ASSOCIATION OPERATING AS RAFGSA NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

10 Other

Unrestricted
funds
2021
Management expenses
472
Auditor's remuneration
1,618
2,090
For the year ended 31 March 2020
2,435
11
Tangible fixed assets
Leasehold
land and
buildings
£
Cost
At 1 April 2020
20,000
Disposals
-
At 31 March 2021
20,000
Depreciation and impairment
At 1 April 2020
16,000
Depreciation charged in the year
2,000
Eliminated in respect of disposals
-
At 31 March 2021
18,000
Carrying amount
At 31 March 2021
2,000
At 31 March 2020
4,000		 Restricted
Total
funds
2021
2021
£
-
472
-
1,618
-
2,090
347
Aircraft
Winches,
trailers and
other assets
£
£
2,017,220
348,384
(40,000)
-
1,977,220
348,384
308,072
157,647
51,022
18,696
(7,200)
-
351,894
176,343
1,625,326
172,041
1,709,148
189,937		 Total
2020
£
1,342
1,440
2,782
2,782
Total
£
2,385,604
(40,000)
2,345,604
481,719
71,718
(7,200)
546,237
1,799,367
1,903,085

12 Fixed asset investments

Draft Financial Statements at 02 December 2021 at 15:58:49 THE ROYAL AIR FORCE GLIDING AND SOARING ASSOCIATION OPERATING AS RAFGSA NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Fixed asset investments (Continued)
Unlisted
investments
£
Cost or valuation
At 1 April 2020 & 31 March 2021 218,474
Carrying amount
At 31 March 2021 218,474
At 31 March 2020 218,474

12 Fixed asset investments

13 Debtors

Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
Creditors: amounts falling due within one year
Other taxation and social security
Trade creditors
Accruals		 2021
£
12,003
20,984
3,262
36,249
2021
£
-
3,052
1,530
4,582		 2020
£
34,787
30,799
10,211
75,797
2020
£
2,835
-
4,031
6,866

14 Creditors: amounts falling due within one year

Restricted funds The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes: Movement in funds
Movement in funds		 Balance at
Income
Expenditure
Transfers Revaluations,
Balance at
Income
Expenditure Revaluations,
Balance at		 1 April 2019
gains and
1 April 2020
gains and
31 March 2021		 losses
losses		 £
£
£
£
£
£
£
£
£
£		 Malcolm Clubs Fund
437,785
6,630
(5,303)
-
(32,951)
406,161
8,079
(4,849)
45,021
454,412		 Paddy Hogg Fund
10,475
40
-
-
-
10,515
12
-
-
10,527		 A W Gough Memorial Fund
576
2
-
-
-
578
1
-
-
579		 GAPAN Scholarships
2,210
-
-
-
-
2,210
-
-
-
2,210		 RAF Central Fund
-
40,171
(13,898)
(6,000)
-
20,273
26,780
(26,967)
-
20,086		 Nuffield trust
5,460
-
-
(5,460)
-
-
-
-
-
-		 456,506
46,843
(19,201)
(11,460)
(32,951)
439,737
34,872
(31,816)
45,021
487,814		 Malcolm Clubs Fund The Malcolm Clubs Fund was established on the dissolution of Malcolm Clubs Ltd. The fund is to be used to support the charity's charitable objectives, principally to continue the Malcolm Clubs Gliding Scholarship Scheme. Paddy Hogg Fund The Paddy Hogg Fund is a memorial fund to give financial support to members involved in any gliding endeavour considered by the Executive Council to be worthy of the memory of Paddy Hogg. A W Gough Memorial Fund The A W Gough Memorial Fund provides an award to the individual nominated as "RAFGSA Member of the year". GAPAN scholarships The GAPAN scholarships are provided by the Guild of Air Pilots and Air Navigators to fund members' training. RAFCentral Funds The RAF Central funds grants were to support certain activities of the charity. Nuffield Trust The Nuffield Trust grant was towards the purchase of a new trailer.
15

Draft Financial Statements at 02 December 2021 at 15:58:49 THE ROYAL AIR FORCE GLIDING AND SOARING ASSOCIATION OPERATING AS RAFGSA NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

16 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Engine Fund
Winch Fund		 Movement
in funds
Balance at
1 April 2019
Maintenance
levies charged
£
£
5,660
3,895
964
2,875
6,624
6,770		 Movement in funds
Balance at
1 April 2020
Maintenance
levies charged
Expenditure
31
£
£
£
9,555
2,082
(27,701)
3,839
1,917
(2,685)
13,394
3,999
(30,386)		 Balance at
March 2021
£
(16,064)
3,071
(12,993)

Designated funds comprise amounts charged to the member clubs to provide against future expenditure on certain assets. The engine fund shows a significant deficit due to the high level of expenditure in the year, this will be recouped from member levies.

17 Analysis of net assets between funds

Unrestricted
funds
Restricted
funds
2021
2021
£
£
Fund balances at 31
March 2021 are
represented by:
Tangible assets
1,799,367
-
Investments
90
263,405
Current assets/
(liabilities)
173,148
224,409
1,972,605
487,814		 Total
Unrestricted
funds
2021
2020
£
£
1,799,367
1,903,085
263,495
300
397,557
201,643
2,460,419
2,105,028		 Total
Unrestricted
funds
2021
2020
£
£
1,799,367
1,903,085
263,495
300
397,557
201,643
2,460,419
2,105,028		 Restricted
funds
2020
£
-
218,174
221,563
439,737		 Total
2020
£
1,903,085
218,474
423,206
2020
£
1,903,085
300
201,643
2,105,028
2,544,765

18 Related party transactions

Draft Financial Statements at 02 December 2021 at 15:58:49 THE ROYAL AIR FORCE GLIDING AND SOARING ASSOCIATION OPERATING AS RAFGSA NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

18 Related party transactions

(Continued)

The charity had the following related party transactions during the year:

2020 2019
£ £
Income from member clubs
Bannerdown 26,194 15,509 .
Chilterns 25,443 21,171
Cranwell 24,891 18,474
Fenland 7,179 6,474
Fulmar 3,979 3,265
Kestral 12,983 10,781
Wrekin 12,762 9,792
At the year end the charity was owed the following amounts by member clubs in respect of normal
sales:
Bannerdown 10,188 -
Chilterns 7,178 -
Fenland 12,766 7,663
Fulmar 958 958
Kestral 3,697 351

19 Members

The company does not have a share capital but each of the members has guaranteed the debts of the company up to an amount of £10 per member.