## Aerobility ## **Trustees’ Report and Unaudited Financial Statements** for the year ended 31 December 2021 **Registered Charity Number 1149629 Registered Company Number 08200768** ## **AEROBILITY** UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 ## **INDEX** ||**Page**| |---|---| |**Charity information**|**1**| |**Report of the Trustees**|**2**| |**Independent Examiner’s Report**|**6**| |**Statement of financial activities**|**7**| |**Balance sheet**|**8**| |**Statement of cash flows**|**9**| |**Accounting policies**|**10**| |**Notes to the financial statements**|**12**| UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 ## **AEROBILITY** ## **CHARITY INFORMATION** ## **Trustees** Shona Bowman Chairman Jon Windover Deputy Chairman Emrys Harries Secretary Allister Bridger Mike Matthews Joel Rose Jamie Smith Neil Tucker Simon Warr Brian Wheeler Paul Winstanley ## **Principal Office** Blackbushe Airport Camberley GU17 9LQ ## **Registered Office** Cawley Priory South Pallant Chichester West Sussex PO19 1SY ## **Registered Charity Number** 1149629 ## **Registered Company Number** 08200768 **Chief Executive** Mike Miller-Smith MBE ## **Independent Examiner** Geoffrey Frost Blue Spire Limited Cawley Priory South Pallant Chichester West Sussex PO19 1SY ## **Bankers** CAF Bank Limited 25 Kings Hill Avenue West Malling ME19 4JQ **Page 1** UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 ## **AEROBILITY** ## **REPORT OF THE TRUSTEES** The trustees hereby present their Annual Report for the purposes of the Charities Act 2011 and Sections 416 to 419 of the Companies Act 2006, together with the accounts for the year ended 31 December 2021. The trustees have adopted the provisions of the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard (FRS 102). ## **STRUCTURE GOVERNANCE AND MANAGEMENT** Aerobility is a charitable company limited by guarantee incorporated on 4 September 2012 (company number 08200768) and registered as a charity on 6 November 2012 (charity number 1149629). It is governed by its Articles of Association. The members of the Company are the Directors who are also Trustees under Charity law. The Board meets regularly and provides the strategic direction and oversight of the charity. Trustees are recruited by advertising in suitable media and by actively considering suitably qualified individuals who make a direct approach. New trustees are supplied with copies of the charity’s governing and policy documents together with Charity Commission guidance, such as CC3 and CC8, and receive training as necessary. Aerobility pay policy for key staff reflects experience, performance and regional variations. All salary increases are subject to approval by the Board of Trustees Remuneration Committee. ## **OBJECTIVES AND ACTIVITIES** The charity’s objects are: To promote and provide education, recreation and leisure time activities for disabled persons in particular by providing opportunities in aviation with the object of improving the conditions of life. Aerobility offers disabled people, without exception, the opportunity to fly an aeroplane and participate in aviationbased activities. Aerobility removes barriers to aviation which as an activity offers disabled people a real sense of achievement and genuinely changes people's lives. Aerobility's specially adapted aircraft fly from various airfields around the UK providing life changing experience flights and flight training. Aerobility aims to support a variety of aviation activities for disabled people and represents the needs of disabled people whatever their aviation aspirations. Participants range from disabled young people through to soldiers injured in service and elderly persons with disabling impairments. All disability types are catered for including physical disabilities, learning disabilities, sensory impairments and mental health issues. “I recently had my first flying experience with Aerobility... For 30 minutes I was in the plane, controlling it – – there was too much to think about to think about my own problems. I was so, so pleased with how it went it offered total liberation from my brain injury and all the problems it causes on a daily basis. I want to thank Aerobility and everyone involved in making the day happen. I loved it.” Activities are designed and built by disabled people for disabled people, with disabled people and beneficiaries within key roles in the organisation. Through this, beneficiaries achieve: - Improving self-esteem and stimulating achievement - Knowledge expansion, well-being and enjoyment - Removing physical and financial barriers and changing perceptions - Leveraging ability, improved employability, new community access - Inspiring people to live their life with new aspirations. “To fly” Aerobility measures success by gathering metrics and output data such as participation levels and disability types accessing Aerobility services. Aerobility also records and utilises outcomes measures such as well-being and – knowledge gained through participation both directly from service users and also from those around them such as family members and caregivers. Together these measures are utilised for improving the quality of Aerobility services and to ensure aims and objectives are being met. Using volunteers to assist with the delivery of services and with Charity administration is a key component of Aerobility structure. Flying instruction, fundraising event management, health and safety advice, and IT support are key roles delivered by over 75 volunteers. The Trustees confirm that they have referred to the guidance on public benefit when reviewing the Charity’s aims and objectives and when planning future activity. The Trustees confirm that they are satisfied that public benefit is at the heart of Aerobility’s activities. **Page 2** UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 ## **AEROBILITY** ## **REPORT OF THE TRUSTEES** ## **ACHIEVEMENTS AND PERFORMANCE** ## **Charitable Activities** Aerobility’s entire operation was significantly affected by the COVID-19 pandemic during 2021. We operated on a limited basis throughout the year, to ensure that our premises and practices were COVID-safe as far as possible. Group flying days and simulator sessions, for instance, were curtailed to maintain social distancing. We resumed flying operations in April after the last lockdown with lots of checkouts to get our licence holders flying again and then as the year progressed we were very busy. We managed to do 730 hours and 612 flights. Disabled accessible aircraft build – Build a Dream: More time was lost on the project due to COVID restrictions but the BaD team of 6 committed volunteers continued to work throughout 2021 and commenced on the final stages of the build, including the disability modifications to the controls, the engine cowling, doors and windows. Junior Aspiring Pilot Programme & Aviation Education Programme: The Aviation Education Programme 2021/22 has seen the group size increase from 9 young people to 2 groups of 6. The smaller groups have reduced the volunteer workload and promoted 1-1 support during sessions which can only be a good thing. Aside from the normal syllabus, the group have enjoyed a trip to the FAST Museum in Farnborough and they are looking forward to further trips of merit. The Junior Aspiring Pilots 2021/2022 Programme was equally positive. The group of 9 teenagers had a taste of what it’s like to be within the airfield environment and really enjoyed testing their skills in the air. ## **Project Able** Started in 2020 with a £745,000 grant from the Department for Transport and individual donations of £36,000, the key targets for project Able (managed by Aerobility Holdings CIC) are: - To take responsibility for 63 G109 Vigilant aircraft and associated spare parts and equipment received by the Aerobility Charity from the MOD. - To refurbish to flying condition as many as possible/practical of these aircraft. - To dispose of any aircraft not capable of being returned to flying condition in a socially acceptable way. - To ensure that sufficient G109 Able aircraft are sold such that the project makes a positive return which can be paid back to the Aerobility Charity. - To deliver to the Aerobility Charity a number of Able aircraft and where possible have been adapted for disabled flyer use. Whilst the coronavirus pandemic has been a considerable challenge for the CIC and Project Able, the project has moved forward, albeit at a reduced pace. Grob Aircraft SE completed the refurbishment and engineering process permitting EASA certification for the aircraft and commenced the refurbishment of two aircraft. Marketing or promotional opportunities were limited. ## **Fundraising, Marketing and Communications** 2021 saw the continued implementation of the strategy to focus on building our own fundraising events and activities i.e. Aviators Ball, Armchair Airshow, Wing Walk as well as working increasingly closely with our existing supporters to deepen and broaden relationships within the Aviation community. The purpose being to drive financial resilience as well as prioritise team efforts on the areas of greatest likely success. As a result of this focus, we have also greatly broadened and deepened our relations with many supporters such as NATS and London Biggin Hill Airport. The former undertaking a suite of new fundraising activities as well as providing increased operational support and the latter supporting Armchair Airshow and facilitating introductions to new supporters. Another key area of focus has been the building of our advocacy work, representing the needs of those living with disability, into the aviation community. This has led to Aerobility leading the conversation on accessibility within the future flight arena, especially within the Urban Air Mobility, Advanced Air Mobility environments, as well as beginning to address the accessibility failings, the aviation community recognises it needs to work on. We have also worked with the Vertical Flight Society to deliver a global student design competition, that will see aeronautical engineering students from around the world, focus their minds on designing an accessible eVTOL air taxi, for passengers with reduced mobility. **Page 3** UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 ## **AEROBILITY** ## **REPORT OF THE TRUSTEES** ## **Organisation** Most staff other than the CEO, Business Administration Manager and the Fundraising Team, were on part-time furlough until September 2021, but all posts were retained and some of our team, including our core volunteer team of Receptionists, were able to return to work in the summer. The Trustee Board continued to meet regularly via Zoom to determine the strategic direction of the charity and set performance objectives for the Chief Executive as well as providing the required governance. ## **Material Investments** ## £8,444 was invested during the year on the kit and parts for our ‘Build a Dream’ disabled aircraft build. £3,925 was invested in a part-share of an accessible balloon basket, to enable Aerobility to offer accessible tethered balloon rides at future events. ## **FINANCIAL REVIEW** Incoming resources amounted to £611,318 (2020: £1,247,139) including restricted donations and designated funds, the outgoing resources were £547,464 (2020: £467,462) giving a surplus for the year of £63,854 (2020: £779,677), including depreciation costs. Donations and legacy income amounted to £202,531 (2020: £985,690), £39,440 (2020: £854,887) of which was restricted income, with unrestricted income totalling £163,091 (2020: £130,803). At the balance sheet date, the charity's funds amounted to £1,354,496 (2020: £1,290,642) inclusive of restricted funds of £802,579 (2020: £784,256) and a fixed asset fund of £291,357 (2020: £324,554). Free reserves being unrestricted income funds exclusive of the net book value of fixed assets of £291,357 (2020: £324,554) amounted to £260,560 (2020: £181,832) at the year-end. ## **Risk managemen** t The assessment and management of risk is a core principle at Aerobility. An operational Safety Management System (SMS) which incorporates regular risk assessments of all aviation and charitable activities is embedded within daily procedures and includes a reporting procedure which is regularly reviewed by the charity safety team and trustees. Robust policies and procedures provide the framework for all activities and include vulnerable adult and child protection, DBS checking and volunteer management. Financial risk is minimised using agreed policies and procedures, and through the regular financial review by Trustees of monthly management accounts. All levels of management, staff and volunteers are accountable for the delivery of our risk and safety performance, from the Trustees and Chief Executive downwards throughout the whole organisation. ## **PLANS FOR FUTURE PERIODS** Our focus on relationships within the Aviation Industry and Government has seen our best-ever financial performance and the securing of a Department for Transport Grant of £514,314 over three years, commencing 4th April 2022. The purpose of this grant is to fund Virtual Aerobility, which will see the charity embed, pandemic-born Services as part of ongoing operations. This will enable the charity to support more people, more efficiently and more often, whereever they are. In turn, driving organisational resilience and protection from future national disruption. It will ensure we can support disabled aviators wherever they are, without need to come to Blackbushe or Tatenhill, removing another significant physical barrier to accessing aviation. Our first GROB G109, re-certified through Project Able, will be joining our fleet at Blackbushe and we also hope to see our Zenair finally take to the air at the end of 2022. **Page 4** AEROBILITY UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 REPORT OF THE TRUSTEES STATEMENT OF TRUSTEES, RESPONSIBILITIES The trustees Iwho are also directors ol Aerobilily for the purposes ol company lawl are responsible for preparing the Report ol the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Praclicel. Company law requires the Iruslees lo prepare financial slalemenls lor each financial year, which give a true and lair view ol the state ol affairs ol the charitable cornpany and of the incoming resources and application ol resources, including the income and expenditure, of the charitable company lor that period. In preparing these financial slalemenls, the trustees are required to.. select suitable accounling policies and then apply them consislenlly., observe the methods and principles in the Charities SORP 2019 IFRS 1021., make judgements and estimates that are reasonable and prudent., slate whether applicable UK Accounting Standards have been followed, subject lo any material departures disclosed and explained in the financial slalemenls., prepare the financial statements on the going con¢ern basis unless il Is inappropriate lo presume that the charitable company will continue in operation. The trustees are responsible lor keeping adequate accounting records that disclose with reasonable accLJracy at any lime the financial PDSltion ol the eharilable company and enable them to ensure that the financial slalemenls comply with the Companies Act 2006. They are also responsible lor safeguarding the assets ol the charitable company and hence for taking reasonable steps lor the prevention and detoclion of fraud and other irregularities. In so lar as the truslees are aware.. there is no relevant information ol which the charitable Company's examiner is unaware., and the trustees have taken all steps that they ought to have taken to make themselves aware ol any relevant information and to establish that the examiner is aware ol that information. The Iruslees are responsible lor the maintenance and integrity ol the corporate and linaneial information included on the charitable company's website. Legislation In the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictlDns. APPOINTMENT OF INDEPENDENT EXAMINER The charty was below the audit threshold lor the year under review and appointed Geoffrey Frost of Blue Spire Limited as independent examiner. This report has been prepared having taking advantage ol th& small companies, exemption in the Companies Act 2006. Approved by the Iruslees and signed on their behalf. hona Bowman Chairman Dale Page 5 AEROBILITY UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 INDEPENDENT EXAMINER'S REPORT Independent Examlner's Report to the Trustees of Aerobility I reKX)rt lo the charity Iruslees on my examination of the acccsunls ol the company lor the year ended 31 December 2021 which are set out on pages 7 to 19. Responsibilities and basi$ of report As the charity Iruslees ol the company land also its directors for the purposes ol company lawl you are responsible for the preparation of the accounts in accordance with the reqLJirement5 of the Companies Act 2008 I'lhe 2006 Acl'l. Having satisfied myself that the accounts ol the company are not required lo be audited under Part 16 01 the 2006 Act and are eligible for independent examination, I report in respect of my examination of your company s accounts as carried out under section 145 01 the Ch8rilies Act 20111'the 2011 Act'l. In carrying out my examination I have followed the Directions given by the Charity Commission under section 14515llbl of the 2011 Act. Independent examiner's statement Since the company's gross Income exceeded £250,000 your examiner musl be a member of a body listed in section 145 01 the 2011 Act. I confirm that l am qualified to undertake the examination because l am a member ol the Inslilule ol Chartered Accounlanls in England and Wales, which is one of the listed bodies. I have completed my examination. l Confirm that no fflatters have come lo my attenb'on in connection with the examination giving me cause lo believe that in any material respect.. accounting records were not kept in respect ol the company as required by section 386 01 the 2006 Act,. or the accounts do not accord with those records., or 3. the accounts do not comply with the accounting requirements ol section 396 of the 2006 Act other than any requirement that the ac¢oun15 gwe a true and fair view, which is not a matter considered as part of an independent examination., or 4. the accounts have not been prepared in accordance with the methods and principles ol the Statement of Recommended Practice lor accounting and reporting by charities applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic ol Ireland IFRS 1021. 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 lo enable a proper understanding of the accounts lo be reached. Cawley Priory South Pallant Chichester Wesl Sussex P019 7UY Geoffrey Frost SclHonsl FCA Dale Page 6 ## **AEROBILITY** UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 ## **STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT)** |**Note**
**INCOME AND ENDOWMENTS FROM:**
Donations and legacies
**1**
Other trading activities
**2**
Aviators' Ball
Other fundraising events
Other income
Charitable activities
**3**
Flight payments
Contracted services
Investments
**4**
Other
**5**
**Total**
**EXPENDITURE ON:**
Raising funds
**6**
Direct fundraising costs
Indirect fundraising costs
Management and support
Charitable activities
**6**
Aircraft operation and hire
Management and support
**Total resources expended**
**Net income/(expenditure)**
**TRANSFERS**
Gross transfers between funds
**15**
**Net movement in funds**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
**15**
**Total funds carried forward**
**15**|**Unrestricted**
**Funds**
**£**
163,091
187,308
39,415
39,613
73,492
569
12,139
57,048
572,675
186,287
14,696
30,332
138,294
175,209
544,818
27,857
17,674
45,531
506,386
551,917|**Restricted**
**Funds**
**£**
39,440
-
-
-
(797)
-
-
-
38,643
-
-
-
-
2,646
2,646
35,997
(17,674)
18,323
784,256
802,579|**2021**
**Total**
**Funds**
**£**
202,531
187,308
39,415
39,613
72,695
569
12,139
57,048
611,318
186,287
14,696
30,332
138,294
177,855
547,464
63,854
-
63,854
1,290,642
1,354,496|**2020**
**Total**
**Funds**
**£**
985,690
52,552
34,656
80,551
48,610
975
9,040
35,065| |---|---|---|---|---| |||||1,247,139| |||||92,498
56,615
27,959
115,478
174,912| |||||467,462| |||||779,677
-| |||||779,677
510,965| |||||1,290,642| The charity has no recognised gains or losses other than those dealt with in the statement of financial activities. **Page 7** AEROBILITY UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 BALANCE SHEET AS AT 31 DECEMBER 2021 2021 2020 Notè FIXED ASSETS Aircraft in construction and aircraft Flight simupators Piopety Mobility equiptnenl and other assets Total fixed assets 2[￿.890 5,525 70,011 8,931 231.526 6.906 77.790 8.332 291,357 324,554 CURRENT ASSETS Slo¢k$ fDr resale Debtors Loan Cash al hand aNJ in barTrk Totsl Current assets 5.166 68.881 745.ODO 287,415 1.106,442 5.166 57.751 745.000 220.670 1.028,587 CURRENT LIABILITJES Creditors. amounts falliw due within one year 13 43.303 62.499 Nèt ¢urrent assotsllllablllllesl 1,(h3.139 966.088 Total ￿t a$5ets 1.354.4g .290.642 ThE FUNDSOF THE CHARITY Restrictsd funds 15 802.579 784,256 Unrestricted funds is 551.917 S(hS.386 Total charity funds 1.354,496 1.290. 42 For Ihp year ending 31 December 2021 IIE company wès e￿tilled lo exemption trom audit undef section 477 of the Compan￿¥ Act 2006 relaliny 10 5fflall companlets. The Tneinbers have not requiied ltr* cornpany lo obtain an audit of ils account5 for the year In que5tlon in accordance ¥Wlh sectlon 476. The directors a¢kno￿edge their responsibililEs for complying wlh the reqLJirements of the Cornpanies Act 2006 with respect lo accounting records and the preparation of accounts. ThesÈ accoun15 lTrave been prepared in accor(lance wih the provisions applicable lo companie$ subject lo the srnall companies, regime. The notes on pages 12 10 19 fortn part of these accounts. Approved by the Iru51ees and signed on Iheir beha*t. a Bowman Trustee Dale CDtnpany number. 08200768 Charity number.. 1149629 Page 8 ## **AEROBILITY** UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 ## **STATEMENT OF CASH FLOWS** |**Note**
**£**
**£**
**Net cash flow from operating activities (see below)**
21,709
**Cash flow from investing activities**
Payments to acquire tangible fixed assets
**10**
(14,633)
Proceeds on sale of tangible fixed assets (net of commission)
47,530
Proceeds on sale of investments
-
Interest received
12,139
**Net cash flow from investing activities**
45,036
**Net increase/(decrease) in cash and cash equivalents**
66,745
**Cash and cash equivalents at 1 January 2021**
220,670
**Cash and cash equivalents at 31 December 2021**
287,415
**Cash and cash equivalents consist of:**
Cash at bank and in hand
287,415
**Cash and cash equivalents at 31 December 2021**
287,415
**Reconciliation of net income to net cash flow from operating activities**
**£**
**£**
Net income for the year
63,854
Adjusted for:
Interest receivable
(12,139)
Depreciation and impairment of tangible fixed assets
**10**
39,287
Loss/(profit) on the sale of tangible fixed assets
(38,987)
Decrease/(increase) in stocks
-
Decrease/(increase) in debtors
(11,110)
Decrease/(increase) in loans receivable
-
Increase/(decrease) in creditors
(19,196)
(42,145)
21,709
**Analysis of changes in net debt**
**2021**
**Cash and cash**
**equivalents**
**£**
Total net debt brought forward
220,670
Cash flows
66,745
Total net debt carried forward
287,415
**2021**
**2021**|**£**
**£**
84,008
(11,557)
3,925
-
9,040
1,408
85,416
135,254
220,670
220,670
220,670
**£**
**£**
779,677
(9,040)
46,753
(721)
1,292
21,578
(745,000)
(10,531)
(695,669)
84,008
**2020**
**Cash and cash**
**equivalents**
**£**
135,254
85,416
220,670
**2020**
**2020**|**£**
**£**
84,008
(11,557)
3,925
-
9,040
1,408
85,416
135,254
220,670
220,670
220,670
**£**
**£**
779,677
(9,040)
46,753
(721)
1,292
21,578
(745,000)
(10,531)
(695,669)
84,008
**2020**
**Cash and cash**
**equivalents**
**£**
135,254
85,416
220,670
**2020**
**2020**| |---|---|---| |||84,008| |||**2020**
**Cash and cash**
**equivalents**
**£**
135,254
85,416| |||220,670| **Page 9** UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 ## **AEROBILITY** ## **ACCOUNTING POLICIES** ## **GENERAL INFORMATION, SCOPE AND BASIS OF THE FINANCIAL STATEMENTS** Aerobility is an incorporated charity, limited by guarantee, incorporated in England with the company number 08200768. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity. The address of the registered office is given in the charity information page of these financial statements. The nature of the charity’s operations and principal activities are outlined in the trustees' report. The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice. The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. ## **INCOME RECOGNITION** All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received. For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled. Gifts in kind donated for resale are included at fair value, being the expected proceeds from sale less the expected costs of sale. Where estimating the fair value is practicable upon receipt it is recognised in stock and ‘Income from other trading activities’. Upon sale, the value of the stock is charged against ‘Income from other trading activities’ and the proceeds are recognised as ‘Income from other trading activities’. The charity received government grants in respect of the Coronavirus Job Retention Scheme and project funding. Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred. Investment income in the form of bank interest is recognised as the charity’s right to receive payment is established. ## **EXPENDITURE RECOGNITION** All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. ## _Management and support costs_ Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. Staff costs have been allocated between costs of raising funds, charitable activities and governance costs on the basis of time spent by staff. Support costs cannot be directly attributed to particular headings and have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources. Support costs have been allocated between costs of raising funds and charitable activities on the best estimate of the use of those resources. Staff costs together with CEO expenses are apportioned according to time spent on each activity. Other general expenses are allocated according to an estimate of the proportion of resources expended. ## **VAT** The charity is not registered for VAT and cannot recover VAT incurred on costs. These are therefore stated inclusive of any VAT element. Where VAT is recoverable on the purchase of supplies and equipment, it is included within other income in the Statement of Financial Activities. **Page 10** UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 ## **AEROBILITY** ## **ACCOUNTING POLICIES** ## **EMPLOYEE BENEFITS** When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. ## **TAXATION** The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. ## **TANGIBLE FIXED ASSETS** Fixed assets are stated at cost and depreciation is provided at rates calculated to write-off the cost of each asset over its useful economic life, less any estimated residual value as follows: Property 10% straight line Aircraft in construction None in the period of construction Aircraft 15% of net book value Mobility Equipment 20% of net book value Other items 20% of net book value Where fixed assets were received as part of the net assets transfer from the British Disabled Flying Association on 1 January 2013, The assets were recorded as additions at net book value. Depreciation rates have remained unchanged following this transfer to write of the remaining cost of the assets over their useful economic lives. The Charity owns specially adapted light aircraft and mobility aids to assist users of the aircraft and the depreciation charge for these assets are allocated as a charitable expense. Items of capital equipment are capitalised where the purchase price exceeds £1,000 ## **STOCKS FOR RESEALE** Stocks are stated at the lower of cost and estimated selling price less costs to sell. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate. ## **DEBTORS AND CREDITORS RECEIVABLE/PAYABLE WITHIN ONE YEAR** Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure. ## **CASH AND CASH EQUIVALENTS** Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. ## **FUND ACCOUNTING** ## _Restricted funds_ Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the note 15 of these financial statements. ## _Unrestricted funds_ Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. ## **GOING CONCERN** The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern. **Page 11** UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 ## **AEROBILITY** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **1. Income from donations and legacies** |Donations
Gift Aid reclaimed
Legacies
Trust and corporate donations
Government grants
Sponsorship
Regular giving|**Unrestricted**
**Funds**
**£**
18,978
492
-
94,901
-
31,282
17,438
163,091|**Restricted**
**Funds**
**£**
3,644
-
-
35,796
-
-
-
39,440|**2021**
**Total**
**Funds**
**£**
22,622
492
-
130,697
-
31,282
17,438
202,531|**Unrestricted**
**Funds**
**£**
20,764
883
5,000
68,527
-
19,250
16,379
130,803|**Restricted**
**Funds**
**£**
2,037
-
-
107,850
745,000
-
-
854,887|**2020**
**Total**
**Funds**
**£**
22,801
883
5,000
176,377
745,000
19,250
16,379| |---|---|---|---|---|---|---| |||||||985,690| ## **2. Income from other trading activities** |Aviators' Ball
Sponsored participation
Raffles
Merchandise
Other fundraising income
Management services income
Sales of airplane parts|**Unrestricted**
**Funds**
**£**
187,308
39,415
13,151
2,509
23,953
-
-
266,336|**Restricted**
**Funds**
**£**
-
-
-
-
-
-
-
-|**2021**
**Total**
**Funds**
**£**
187,308
39,415
13,151
2,509
23,953
-
-
266,336|**Unrestricted**
**Funds**
**£**
52,552
34,656
3,168
892
39,746
745
36,000
131,014|**Restricted**
**Funds**
**£**
-
-
-
-
-
-
-
-|**2020**
**Total**
**Funds**
**£**
52,552
34,656
3,168
892
39,746
745
36,000| |---|---|---|---|---|---|---| |||||||131,014| ## **3. Income from charitable activities** |Flight payments
Other contracted services|**Unrestricted**
**Funds**
**£**
73,492
73,492
569
569
74,061|**Restricted**
**Funds**
**£**
(797)
(797)
-
-
(797)|**2021**
**Total**
**Funds**
**£**
72,695
72,695
569
569
73,264|**Unrestricted**
**Funds**
**£**
48,610
48,610
975
975
49,585|**Restricted**
**Funds**
**£**
-
-
-
-
-|**2020**
**Total**
**Funds**
**£**
48,610| |---|---|---|---|---|---|---| |||||||48,610| |||||||975| |||||||975| |||||||49,585| **Page 12** ## **AEROBILITY** UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 ## **NOTES TO THE FINANCIAL STATEMENTS** ## **4. Income from investments** |Bank interest received
Loan interest
**5. Other income**
Gain on sale of fixed assets
COVID-19 grants
**6. Analysis of expenditure**
Direct fundraising expenditure
Merchandise cost
Cost of aircraft and parts sold
Indirect fundraising costs
Credit card collection fees
Aircraft operating and hire
Aircraft depreciation charge
Resources expended
CEO remuneration
Operations director
Aviation Activities Officer
WIS manager
Office and financial administration
Employer's national insurance
Employer's pension
Premises costs
Building depreciation
General office expenses
Depreciation
Motor and travel expenses
Auditor and examiner fees
Other governance costs
Total support costs
Total resources expended
Restricted funds
Unrestricted funds|**Unrestricted**
**Funds**
**£**
23
12,116
12,139
**Unrestricted**
**Funds**
**£**
38,987
18,061
57,048
**Raising**
**funds**
**£**
186,260
27
-
13,675
1,021
-
-
200,983
13,289
-
-
-
-
2,549
1,619
4,213
1,556
5,597
194
623
640
52
30,332
231,315
-
231,315
231,315|**Restricted**
**Funds**
**£**
-
-
-
**Restricted**
**Funds**
**£**
-
-
-
**Charitable**
**activities**
**£**
-
-
-
-
-
107,758
30,536
138,294
31,007
37,181
13,740
5,428
29,105
5,949
3,778
16,851
6,223
22,310
778
4,016
1,280
209
177,855
316,149
2,646
313,503
316,149|**2021**
**Total**
**Funds**
**£**
23
12,116
12,139
**2021**
**Total**
**Funds**
**£**
38,987
18,061
57,048
**2021**
**Total**
**Funds**
**£**
186,260
27
-
13,675
1,021
107,758
30,536
339,277
44,296
37,181
13,740
5,428
29,105
8,498
5,397
21,064
7,779
27,907
972
4,639
1,920
261
208,187
547,464
2,646
544,818
547,464|**Unrestricted**
**Funds**
**£**
176
8,864
9,040
**Unrestricted**
**Funds**
**£**
721
34,344
35,065
**Raising**
**funds**
**£**
90,699
1,799
36,000
20,065
550
-
-
149,113
10,093
-
-
-
-
1,462
1,212
4,245
1,729
6,723
243
592
1,660
-
27,959
177,072
36,000
141,072
177,072|**Restricted**
**Funds**
**£**
-
-
-
**Restricted**
**Funds**
**£**
-
-
-
**Charitable**
**activities**
**£**
-
-
-
-
-
78,583
36,895
115,478
23,551
33,066
11,136
16,910
30,191
3,410
2,829
16,988
6,914
22,752
972
2,873
3,320
-
174,912
290,390
54,500
235,890
290,390|**2020**
**Total**
**Funds**
**£**
176
8,864| |---|---|---|---|---|---|---| |||||||9,040| |||||||**2020**
**Total**
**Funds**
**£**
721
34,344| |||||||35,065| |||||||**2020**
**Total**
**Funds**
**£**
90,699
1,799
36,000
20,065
550
78,583
36,895| |||||||264,591| |||||||33,644
33,066
11,136
16,910
30,191
4,872
4,041
21,233
8,643
29,475
1,215
3,465
4,980
-| |||||||202,871| |||||||467,462| |||||||90,500
376,962| |||||||467,462| **Page 13** UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 ## **AEROBILITY** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **7. Independent auditor's and examiner's fees** |**Unrestricted**
**Restricted**
**Funds**
**Funds**
**£**
**£**
Audit
-
-
Examination
1,920
-
Other services
936
-
**8. Wages and salary cost**
Gross wages
Employer's national insurance costs
Employer's pension contributions
Staff numbers:
Average head count - administration of charitable activities
Analysed as:
Part time
Full time|**2021**
**Total**
**Funds**
**£**
-
1,920
936|**Unrestricted**
**Funds**
**£**
4,980
-
1,104|**Restricted**
**Funds**
**£**
-
-
-
**2021**
**Total**
**Funds**
**£**
195,024
13,067
5,570
213,661
**2021**
10
9
1
10|**2020**
**Total**
**Funds**
**£**
4,980
-
1,104| |---|---|---|---|---| |||||**2020**
**Total**
**Funds**
**£**
174,249
7,870
4,679| |||||186,798| |||||**2020**
10| |||||9
1| |||||10| During the year under review no employees (2020: no employees) received employee benefits (excluding employer pension costs) above £60,000. During the year under review 1 (2020: 1) member of the charity's staff, identified as key management personnel, received employee benefits (inclusive of salary, social security and pension contributions) totalling £51,850 (2020: £39,062). In the comparative year expenses of £431 were reimbursed to key management personal in the performance of their duties. Aerobility operates a defined contribution pension scheme for its employees. Contributions to the scheme in the year amounted to £5,570 (2020: £4,679) with £1,489 (2020: £nil) payable at the balance sheet date ## **9. Related party transactions** None of the trustees received any remuneration during the period under review. No trustees were reimbursed expenses during the period under review. There were no other related party transactions requiring disclosure in these financial statements. **Page 14** ## **AEROBILITY** UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 ## **NOTES TO THE FINANCIAL STATEMENTS** ## **10. Tangible assets** |Cost
Brought forward
Additions
Disposals
Depreciation
Accumulated brought forward
Charge
On disposals
Net book value carried forward
Net book value brought forward|**Aircraft in**
**construction**
**and aircraft**
**£**
398,601
12,367
(23,804)
387,164
167,075
28,460
(15,261)
180,274
206,890
231,526|**Flight**
**simulators**
**£**
10,790
-
-
10,790
3,884
1,381
-
5,265
5,525
6,906|**Property**
**£**
163,615
-
-
163,615
85,825
7,779
-
93,604
70,011
77,790|**Mobility**
**equipment**
**£**
14,455
2,266
-
16,721
10,981
695
-
11,676
5,045
3,474|**Other**
**equipment**
**£**
17,317
-
-
17,317
12,459
972
-
13,431
3,886
4,858|**Total**
**£**
604,778
14,633
(23,804)| |---|---|---|---|---|---|---| |||||||595,607| |||||||280,224
39,287
(15,261)| |||||||304,250| |||||||291,357| |||||||324,554| ## **11. Debtors** |Trade debtors
Prepayments
Other debtors
**12. Loan**
Loan|**2021**
**Total**
**Funds**
**£**
68,801
-
60
68,861
**2021**
**Total**
**Funds**
**£**
745,000
745,000|**2020**
**Total**
**Funds**
**£**
47,425
10,313
13| |---|---|---| |||57,751| |||**2020**
**Total**
**Funds**
**£**
745,000| |||745,000| The charity has provided a loan to Aerobility Holdings CIC with an interest rate of 1.5% over the Bank of England base rate. The loan is repayable on the written demand of the charity and secured by debenture issued by the borrower. This loan has been provided to Aerobility Holdings CIC as the project manager of Project Able which will deliver 4 Vigilant glider aircraft for the charity's use and further glider aircraft for resale to the general public with surpluses arising being passed to the charity to support the furthering of its objects. **Page 15** UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 ## **AEROBILITY** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **13. Creditors: amounts falling due within one year** |**13. Creditors: amounts falling due within one year**||| |---|---|---| |Trade creditors
Other creditors
Accruals
Deferred income (see below)
Other taxation and social security|**2021**
**Total**
**Funds**
**£**
4,982
1,487
2,920
27,676
6,238
43,303|**2020**
**Total**
**Funds**
**£**
10,017
27
9,824
37,629
5,002| |||62,499| ## **Deferred income** |**Deferred income**||||| |---|---|---|---|---| |ISTAT
Boeing scholarship
NATS Management Support
Gift vouchers
VAT consultancy costs|**Brought**
**forward**
**£**
4,744
11,544
17,784
3,557
-
37,629|**Released**
**in year**
**£**
(4,744)
(11,544)
(17,784)
(1,881)
-
(35,953)|**Deferred**
**in year**
**£**
-
-
25,000
-
1,000
26,000|**Carried**
**forward**
**£**
-
-
25,000
1,676
1,000| |||||27,676| Income received in relation to future accounting periods, is deferred, and released to income in line with the specified timing of its use. ## **14. Analysis of net assets between funds** |Tangible fixed assets
Current assets
Current liabilities|**Unrestricted**
**Funds**
**£**
291,357
303,863
(43,303)
551,917|**Restricted**
**Funds**
**£**
-
802,579
-
802,579|**2021**
**Total**
**Funds**
**£**
291,357
1,106,442
(43,303)
1,354,496|**Unrestricted**
**Funds**
**£**
324,554
244,331
(62,499)
506,386|**Restricted**
**Funds**
**£**
-
784,256
-
784,256|**2020**
**Total**
**Funds**
**£**
324,554
1,028,587
(62,499)| |---|---|---|---|---|---|---| |||||||1,290,642| **Page 16** UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 ## **AEROBILITY** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **15. Analysis of net movement in funds** |**Restricted funds**
Junior Aspiring Pilot Programme
NATS management support
Build a dream
Scholarship fund
Aircraft spares fund
Project Able fund
Aviation Education Programme (AEP)
ISTAT Virtual Aerobility
**Total restricted funds**
**Unrestricted funds**
Designated funds
Fixed asset fund
General funds
**Total unrestricted funds**
**Total funds**
**Restricted funds**
Junior Aspiring Pilot Programme
NATS management support
Build a dream
Scholarship fund
Aircraft spares fund
Project Able fund
**Total restricted funds**
**Unrestricted funds**
Designated funds
Fixed asset fund
General funds
**Total unrestricted funds**
**Total funds**||**Year ended 31 December 2021**|**Year ended 31 December 2021**|**Year ended 31 December 2021**|| |---|---|---|---|---|---| ||**Brought**
**forward**
**£**
937
-
22,193
16,126
-
745,000
-
-
784,256
324,554
324,554
181,832
506,386
1,290,642|**Incoming**
**Outgoing**
**resources**
**resources**
**Transfers**
**£**
**£**
**£**
6,892
(2,646)
(3,930)
-
-
-
3,145
-
-
21,106
-
(13,744)
-
-
-
-
-
-
500
-
-
7,000
-
-
38,643
(2,646)
(17,674)
-
-
(33,197)
-
-
(33,197)
572,675
(544,818)
50,871
572,675
(544,818)
17,674
611,318
(547,464)
-
**Year ended 31 December 2020**|||**Carried**
**forward**
**£**
1,253
-
25,338
23,488
-
745,000
500
7,000| ||||||802,579| ||||||291,357| ||||||291,357
260,560| ||||||551,917| ||||||1,354,496| ||||||| ||**Brought**
**forward**
**£**
6,906
-
20,156
10,053
-
-
37,115
362,954
362,954
110,896
473,850
510,965|**Incoming**
**resources**
**£**
7,850
54,500
2,037
9,500
36,000
745,000
854,887
-
-
392,252
392,252
1,247,139|**Outgoing**
**resources**
**£**
-
(54,500)
-
-
(36,000)
-
(90,500)
-
-
(376,962)
(376,962)
(467,462)|**Transfers**
**£**
(13,819)
-
-
(3,427)
-
-
(17,246)
(38,400)
(38,400)
55,646
17,246
-|**Carried**
**forward**
**£**
937
-
22,193
16,126
-
745,000| ||||||784,256| ||||||324,554| ||||||324,554
181,832| ||||||506,386| ||||||1,290,642| ## **Description of restricted funds** _Junior Aspiring Pilot Programme_ Funds received from BBC Children in Need and Hart Rotary to provide aviation education to disabled young people. _NATS Management Support_ Funds received to cover the cost of employing administrative management. _Build a dream_ Funds donated for the construction of a self-build aircraft. _Scholarship fund_ Funds received to support disabled fliers by subsidising the cost of flights, enabling those people awarded scholarships to fly with aerobility free of charge. _Aircraft spares fund_ Funds received to acquire aircraft in need of repair and aircraft spares to be used as part of Project Able. **Page 17** ## **AEROBILITY** UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 ## **NOTES TO THE FINANCIAL STATEMENTS** |**Description of restricted funds continued**|| |---|---| |_Project Able fund_|Funds received to support the repair and bring into use Vigilant aircraft for the| ||charity's use and for sale.| |_Aviation Education Programme (AEP)_|Funds received to support our 2021/2022 programme for young disabled people| ||with an interest in aviation| |_ISTAT Virtual Aerobility_|Funds received in support of the development of our virtual activities for disabled| ||people with an interest in aviation.| |**Designated funds**|| |_Fixed asset fund_|Funds received to purchase new assets for the charity.| ## **16. Financial instruments** The carrying amounts of the charity's financial instruments are as follows: |_Financial assets_
Debt instruments measured at amortised cost:
Trade debtors (note 11)
_Financial liabilities_
Measured at amortised cost:
Trade creditors (note 12)|**2021**
**Total**
**Funds**
**£**
68,801
68,801
4,982
4,982|**2020**
**Total**
**Funds**
**£**
47,425| |---|---|---| |||47,425| |||10,017| |||10,017| **Page 18** UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 ## **AEROBILITY** ## **NOTES TO THE FINANCIAL STATEMENTS** |**17. Comparative statement of financial activities**
**Note**
**INCOME AND ENDOWMENTS FROM:**
Donations and legacies
**1**
Other trading activities
**2**
Aviators' Ball
Other fundraising events
Other income
Charitable activities
**3**
Flight payments
Contracted services
Investments
**4**
Other
**5**
**Total**
**EXPENDITURE ON:**
Raising funds
**6**
Direct fundraising costs
Indirect fundraising costs
Management and support
Charitable activities
**6**
Aircraft operation and hire
Management and support
**Total resources expended**
**Net income/(expenditure)**
**TRANSFERS**
Gross transfers between funds
**15**
**Net movement in funds**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
**15**
**Total funds carried forward**
**15**|**Unrestricted**
**Funds**
**£**
130,803
52,552
34,656
80,551
48,610
975
9,040
35,065
392,252
92,498
20,615
27,959
115,478
120,412
376,962
15,290
17,246
32,536
473,850
506,386|**Restricted**
**Funds**
**£**
854,887
-
-
-
-
-
-
-
854,887
36,000
-
-
-
54,500
90,500
764,387
(17,246)
747,141
37,115
784,256|**2021**
**Total**
**Funds**
**£**
985,690
52,552
34,656
80,551
48,610
975
9,040
35,065| |---|---|---|---| ||||1,247,139| ||||128,498
20,615
27,959
115,478
174,912| ||||467,462| ||||779,677
-| ||||779,677
510,965| ||||1,290,642| **Page 19**