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2022-12-31-accounts

CENTRAL FUND ROYAL AIR FORCE CENTRAL FUND ANNUAL REPORT Ill Registered Company Number." 8555984 Charity Registered in England and Wales.. 1152560 Charity Reglstered in Scotland.. SC044299

CONTENTS REFERENCE AND ADMINISTRATIVE DETAILS A MESSAGE FROM TH£ CHAIR AMESSAGE FROM THECEO 10 THE TRUSTEES, REPORT 14 PROP&RTI&S 17 PROGRESS AGAINST STRATIGIC OBJECTIVES 30 PLANS FOFi FUTURE PERIODS 34 LEGAL STATUS AND ORGANISATION 37 MANAGEMENT AND COMMITTEES 41 RISK MANAGEMENT 43 REVIEW 46 TRUSTEES, RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS 5 1 STATEMINT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022 52 BALANCE SHEET AS OF 31 DECEMBER 2022 53 STATEMENTOF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022 54 NOTESTO THE FINANCIALSTATENENTS FOR THE YEAR ENDED 31 DECEMBER 2022

RAF CENTRAL FUND // ANNUAL REPORT 2022 REFERENCE AND ADMINISTRATIVE DETAILS TRUSTEES Dr E Molloy Warrant Officer J Crossley Mr J C Michaelson Mrs A Farmery Group Captain M Williams Group Captain C Baker Air Vice-marshal J Ellis Chair Resigned 13 April 2022 FINANCE AND RISK COMMITTEE MEMBERS Group Captain A Portlock Group Captain M Williams Wing Commander K Tinkler Mr 8 Cartledge Group Captain S Brewin Chair Trustee Member GRANTS COMMITTEE MEMBERS Warrant OfPicer J Crossley Mrm Nurse Squadron Leader G MacKay Group Captain D Murty Squadron Leader R McPhee Warrant Officer E Kerslake Warrrantofficer G Evans Squadron Leader F Maybury Squadron Leader F Farthing Warrant Officer A Thomas Master Aircrew J Stone Warrant Officer J Wall Warrant Officer S Cotman Squadron Leader C Spear Squadron Leader R Causer Group Captain C Owen Squadron Leader P Luckett Warrant Officer T Buxton Warrant Officer M Ratten Squadron Leader A Lynn Chair & Trustee Member Appointed 25 October 2022 Appointed 22 Narch 2022 Appointed 22 March 2022 Appointed 22 March 2022 Appointed 14 June 2022 Appointed 25 October 2022 Appointed 25 October 2022 Appointed 25 October 2022 Resigned 22 March 2022 Resigned 22 Narch 2022 Resigned 22 March 2022 Resigned 22 Narch 2022 Resigned 22 March 2022 Resigned 4 May 2022 Resigned 14 Jurne 2022 Resigned 25 October 2022 Resigned 25 October 2022 rafcf.org u

RAF CENTRAL FUND

ANNUAL REPORT 2022

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REMUNERATION COMMITTEE MEMBERS

Mrs A Farmery Group Captain M Williams Warrant Officer J Crossley

Chair & Trustee Member Trustee Member Trustee Member

INVESTMENT COMMITTEE MEMBERS

Mr JC Michaelson Mrs S Bridgeland Group Captain M Williams Mr J Brown

Chair & Trustee Member Trustee Member

PRINCIPAL OFFICERS OF THE CHARITY

Mrs N Graske Mr R Perriam

Company Secretary Chief Executive Officer

REGISTERED

ADDRESS

PRINCIPAL OFFICE

Hurricane Block Headquarters Air Command RAF High Wycombe Buckinghamshire HP14 4UE

RAF Central Fund Danesfield New Lock Lane Henley Road Medmenham Buckinghamshire SL7 2EY

RAF CENTRAL FUND // ANNUAL REPORT 2022 PROFESSIONAL ADVISORS Lane Clark & Peacock LLP 95 Wigmore Street London WIU IDQ INVESTMENT MANAGERS Marathon Dlstressed Credlt Fund, LP Savllls Inv•stm•nt Managemènt Ltd Inslght Investment Global ABS Fund Balllle Glfford & Co Ltd Legal and General Investment Management Ltd BarSngs Global Investment Funds 2 PIC Knlghtsbrldg¢ Advlsers LLC JP Morgan Ltd CCLA Fund Managers Ltd BNY Mellon Alternative Investment Servlces Ltd Llnk Fund AdmSnlstrators Ilrelandl Ltd IFM Investor5 REGISTERED AUDITORS Mazars LLP 6 Sutton Pla2a Sutton Court Road Sutton SMI 4FS LEGAL ADVISORS Charles Russell Speechlys LLP 5 Fleet Place London EC4M 7RD Russell-cooke LLP 2 Putney Hill London SW15 6A8 BANKERS Barclays Bank 4 Waterside Way The Lakes Bedford Road Northampton NN4 7XD rafcf.org uk | 4

RAF CENTRAL FUND // ANNUAL REPORT 2022 A MESSAGE FROM THE CHAIR 2022 was a year of opportunity at the RAF Central Fund. It was the first full year of uninterrupted sport and physical activity post the pandemic and therefore served as an ideal juncture for us to build an even stronger platform of support for the future. DLJring the previous two and a half years. the Central Fund had to pivot to newways ofworking to meet the changing needs of our beneficiaries. Temporary changes to some of our processes and services during the pandemic proved popular enough for the team to adopt them on a full-time basis. These improvements resulted in us being able to support more serving personnel getting access to sport and physical opportunities in 2022. Whilst we adapted our tactical delivery model. we also worked hard behind the scenes with our partners at the Directorate of RAF Sport IDRSI and the Sports Federation to explore how to improve the strategic model of sport in the RAF. While the benefits of this will be felt in 2023 and beyond. the foundations were laid in 2022. The two charity boards. chief executives and senior leadership teams focLJsed on combining their respective skill sets to work together to create the right environment for building a smarter RAF sports ecosystem. This model should allow for decreased administrative burden and liabil￿tY for sports associations, improved efficiencies and greater funding for all. It won't be quick or easy, but the teams are aligned in their desire to deliver this model in order that serving personnel of every ability in the RAF can benefit from improved access to sport and physical activity At its highest level the model involves three pha5es'. l.The merging of the RAF Central Fund and RAF Sports Federation with the entity being called the RAF Central Fund. 2.Thefolding in of the RAF Sports Associations into the RAF Central Fund. 3. Leveraging the benefits of the simplified construct. There are exciting opportunities underpinning the various phases, which include a framework improving the links between station sports and sports associations, and improved sponsorship opportunitiesfor RAF Sport. This work will not only help us to deliver our vision of enabling all serving RAF personnel to access sporting opportunities and physical activities but will also enable DRS to deliver their RAF Sport Strategy. It is unusual to have a win-win in the sports world but l am confident we will achieve just that. Dr Eamonn Molloy Chair, RAF Central Fund rafcf.org u

RAF CENTRAL FUND // ANNUAL REPORT 2022 A MESSAGE FROM THE CEO Sport hit the ground running in 2022 with a return to business as usual for many disciplines. After two years of disruption, it was inspiring to see so much activity taking place as evidenced by the Central Fund team out supporting mLJltiple fixtures ranging from motorsports to volleyball and lacrosse. Also inspiring was the number of applications from stations for the inaugural RAF Central Fund Award at the 2022 RAF Sport Awards. There are some truly excellent sporting and physical activities being delivered at station level. which meant that the winning statior) had to submit something extraordinary to win, That bid came from RAF Coningsby in the form of Project Delapsus, This initiative supports frontline personnel by forward-basing PTIS on squadrons. using sustainable transport and mobile gyms to deliver Sport to personnel at a time of their choosing. RAF Coningsby had a busy couple of months as shortly after winning the award they were visited by HRH Prince William who. amongst other duties. met with the representatives of the women's football team and opened the new Central Fund supported boxing gym. He was also kind enoLJgh to remark how good it was that a charity like the RAF Central Fund existed to support serving personnel in their chosen sport. Trustees Annual Reports usually paint an overly positive picture. however, we try to be as transparent as possible so it's only right to mention initiatives that didn't work as well as expected. Although we were one of the very first sporting organisations in the UK to partner with Joymo to generate income for associations through televised sports events. the low take- up/interest levels from the RAF Sport associations meant that the trial did not progress further. Lessons were learned though, which have helped inform other opportunities. Whilst we continue to explore contemporary ways to support sport and physical activity in the RAF, we are also looking at how we deliver those products and services. In 2022 we set about measu[￿rng our carbon footprint by calculating not only our direct impact but also our indirect impact through investments and Sports associations. We have identified our United Nations sustainable goals and have written our action plan which will become more evident in 2023. Our Chair has already noted the work that has gone into creating the new RAF Sport ecosystem and whilst the team continues to prepare for delivering Phase 2 in 2025, we already have an eye on Phase 3. so that we can set the conditions to leverage sport to the best effect for you all. In the meantime. I wish you all a healthy and successful yearof sportahead. Mr Ross Perriam Chief Executive Oflicer. RAF Central Fund rafcf.org uk | 7

TheRAFCentralFundhasbeena conslstentsourceofsupport throughoutmytime playing sport in the RAF. Through the charitys support of the Sports Associations and Station club furKling to their Individual Sport5 Grant5 Scheme. The financial ssistance provltledby the Fundhas helpedmassively towards the kit required for my sports and goes a lon9 way in relieving some of the stress that comes wtth making 5ureyouhaveenough funding forthe Season ahead. CplPhillip Morley-jones 46 THANK YOU FOR THE AMAZING SUPPORT THAT YOU HAVE GIVEN US THROUGHOUT THE IT REALLY HAS MADE A DIFFERENCE IN HELPING US TO ACHIEVE OUR SPORTING GOALS AND SET US UP FOR SUCCESS IN THE YEARS AHEAD. 99 Asa beneftlary of the Fund's hard work myself. lam passlonateabout ways I can elp people get Involved and find the power of sport. None of my runnlng opportunltles or achlevements would have been p955ible wlthout the support of theRAFCentralFund. CplEmlty8rown IRe5erv15tandRAFCentralFundAmba55adorJ RAF VOLLEYBALL HAS ALWAYS BENEFITfED FROM THE CENTRAL FUND¥ GENEROSITY AND ID UKE TO ExfEND MY THANKS TO THE TEAM FOR ALL YOUR WORK IN SUPPORTING OUR SPORTING ENDEAVOURS. THIS YEAR OUR WOMENS TEAM WON THE CROWN SERVICES IN MAY AND CAME A VERY CLOSE SECOND TO THE ARMY IN OUR INTER4ERVICES COMPETITION. SIMILARLY, OUR MÉNS TEAM WERE RUNNÉRS UP AT CROWNS BUT WENT ON TO WIN THE INTER4ERVICES COMPETITION. YOUR FUNDING REALLY DOES MAKE A BIG DIFFERENCE None of my Success tn sport would have been p0551ble wlthÉxJt the help and support of the Central Fund,. they continue to provide an unrivalled amount gf support to RAFpersonnel to achieve their sportiftg achlevements and for that I willbeforevertndebted to the charity, andeveryoneinvolvedwithlt. Sgt DènnyBurke rafcf.org u

1144 IROYAL J aFORCE .quital

RAF CENTRAL FUND // ANNUAL REPORT 2022 THE TRUSTEES, REPORT YEAR ENDED 31 DECEMBER 2022 The Trustees, who are also directors of the Royal Air Force Central Fund for the purposes of company law, present their report and audited financial statements for the year ended 31 December 2022. The financial statements have been prepared in accordance with the provisions of the Statement of Recommended Practice Accounting & Reporting by Charities" IFR51021 and in line with current statutory requirements, the Charity's Constitution and applicable Accounting Standards in the United Kingdom. CHARITABLE OBJECT AND ACTIVITIES FOR THE PUBLIC BENEFIT The Memorandum and Articles of Association defines the Fund's object as a charity that is.. Specifically restrlcted to the general benefit of members or former members of the RoyalAlr Force and thelr dependants In such charltable ways as the Trustees think fit. This object presents the Trustees with wide powers, enabling them to provide charitable assistance to the RAF Community, primarily via charitable grants. The core vision of the Fund, to provide support to those serving in the RAF today and on an enduring basis, continues to underpin the ethos and activities of the Charity. From the Fund's origins back in 1919, through to the present day. the Fund has remained steadfast in its duty to support those who serve In the RAF. Working directly alongside those we support ensures the Charity is able to remain focused on and react quickly to their evolving needs through amenities and sports provisions. rafcf.org.uk | io

RAF CENTRAL FUND // ANNUAL REPORT 2022 VISION For all serving personnel to develop their full potential through sport and physical activity, MISSION To enable all serving RAF personnel to access sporting opportunities and physical activities. STRATEGIC OBJECTIVES Broaden the Charity's understanding of how the challenges of service life affect the RAF community with regards to health and fitness. Develop and deliver flexible, accessible SLJpport programmes that reach those most in need. Significantly increase awareness of its work within the RAF community. Manage the Charity as effectively and efficiently as possible. Grow and sustain the resources required to meetthe needs of its beneficiaries, rafcf org uk l i i

RAF CENTRAL FUND // ANNUAL REPORT 2022 PUBLIC BENEFIT The Trustees recognise the two principles of public benefit and believe that the objectives and activities of the Fund formally meet these principles. For all serving personnel to develop their full potential through 5POrt andphysicalactivity. Working towards this vision assists in the promotion of military efficierncy which underpins esprit de corps and team working. whilst additionally encouraging personnel to develop the character. spirit and attitude to face challenges and danger a550ciated with military service. As a result, the Fund provides a benefit not only to its direct beneficiary group but additionally to the general public in helping to provide personnel who are motivated, have high morale and are willing to serve the needs of their country and that of its public. at all times. The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 20 1 I to have due regard to the Charity Commission's general guidance on public benefit. rafcf org uk | 12

RAF CENTRAL FUND // ANNUAL REPORT 2022 PROPERTIES As a charity. the Fund is committed to working with serving personnel to find the best methods toenhance and supportthem as theywork and live within the RAF community. One of the ways this is achieved is through its sporting centres and recreational accommodation. providing serving personnel bespoke venues for taking part in their sport or outdoor activity of choice. FESHIEBRIDGE LODGES Completely rebuilt in 2019, this recreatiornal accommodation located near Aviemore in the Cairngorms National Park is prioritised for serving RAF personnel to use for holidays. outward bound courses and decompression. 2022 was the first year post pandemic restrictions that the site was open for the full 12-month period and saw an occupancy rate of 87¥0, of which 270/0 of the bookings were made by serving personnel, EYOND EXPECTATIONS GREAT VALur 66 THE LODGE WAS CLEAN. COSY. COMFORTABLE AND VERY WELL EQUIPPED. CANT WAIT TO BOOK OUR NExf TRIPI 99 rafcf org.uk | 14

RAF CENTRAL FUND // ANNUAL REPORT 2022 HALTON TENNIS CENTRE Halton Tennis Centre is the Home for Sport for RAF Tennis and is used by RAF personnel for try outs. training and events. The property is owned by the Fund and leased to the RAF Tennis Association to provide members and their families with access to tennis facilities. coaching and competitions for all abilities. VINE LANE RAF Central Fund Vine Lane is Ljsed by RAF Cricket on an infrequent basis. The Fund are continuing to review how the cricket ground could be better utilised for the benefit of its beneficiaries, whilst taking into consideration the requirements of RAF Sport. Discussions continue with the Local Council to identify possible opportunities for the site. The potential financial, reputational and environmental impacts of a change of use are being considered as partof the review. DANESFIELD RAF Central Fund Dar7esfield 15 Utilised daily by serving RAF personnel in order to take part in Robson Academy of Resilience training, Danesfield is also the Home for Sport for the RAF Rowing and RAF Canoeing Associations With regular training, club sessions and events taking place at the site. Due to the unique location of the site, the Fund is reviewing future opportunities. rafcf org.uk | 15

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RAF CENTRAL FUND // ANNUAL REPORT 2022 PROGRESS AGAINST STRATEGIC OBJECTIVES BROADEN THE CHARITY'S UNDERSTANDING OF HOW THE CHALLENGES OF SERVICE LIFE AFFECT THE RAF COMMUNITY WITH REGARDS TO HEALTH AND FITNESS The Fund attends biannual meetings for RAF charities hosted by the RAF'S Deputy Commander of Capability to better understand the challenges and needs of the wider RA W community. Proposals were put forward from the Fund to help some of the other charities with their investment income strategies and clarity was given around the 'swim lane that the Fund operates in so that support could be better targeted. In addition, the Fund attends the biannual Sports Board meetings which comprise of multiple stakeholders to better understand the current needs and challenges facing RAF Sport. In 2022 discussions took place on emerging projects and updates from the Fund were given relating to current funding and support programmes. In 2022 the Fund also attended. 16 ODDIIO STATION ENGAGEMENT DAYS SPORT ASSOCIATION MEETINGS/EVENTS RAF FAMILIES DAY (BRIZE FEST) HEALTH & WELLBEING DAYS RAF AIRSHOWS rafcf org uk | 17

RAF CENTRAL FUND // ANNUAL REPORT 2022 DEVELOP AND DELIVER FLEXIBLE, ACCESSIBLE SUPPORT PROGRAMMES THAT REACH THOSE MOST IN NEED The Fund principally seeks to meet its objectives through the provision of support as a grant giving charity. The Grants programme is divided into three funding streams.. RAF SPORT ASSOCIATION GRANTS Funding of RAF Sport Associations fulfils the charitable objectives of the Fund by Increasing the number of serving personnel participating in sport and physical activities. Increasing the provision of sport and physical activity opportunities. Providing an opportunity for serving RAF personnel to detach from operational demands, Providing an increased sense of inclusivity within the RAF serving community. 2022 marked the first year of funding in the newly developed Joint Planning Process which operates on a three-year cycle to allow greater scope for the 54 RAF Sport Associations to develop long-term strategies. The approach has also involved a closer working relationship with the Directorate of RAF Sport and the Sports Federation so that the three agencies behind the delivery of RAF Sport are better aligned. 2022 also marked the first full year of RAF Sport Association activities post pandemic restrictions, 50 £1.211.493 12• INCREASE ON ZOZI RAF SPORTS ASSOCIATIONS FUNDED VALUE OF ASSOCIATION FUNDING tttttiil+l+l++ 10,396. PERSONNÈLSUPPORTED •Flgure provided bythe SportsAssoclatlons r6fcf org.uk | 18

RAF CENTRAL FUND // ANNUAL REPORT 2022 ENRICHMENT GRANTS The RAF Central Fund Enrichment Grant Programrne supports personnel by traditionally awarding bids to stations and units to benefit the maximum number of personnel. The resumption of sporting activities across all stations post- pandemic brought about an increase in requests for charitable funding to support unit activities. Enrichment Grant funded projects included new equipment for station sports clubs such as archery kit for RAF Cosford and funding of capital projects. with the new boxing facility at RAF Coningsby being opened by His Royal Highness the Prince ofwales. .,43 VALUE OF ENRICHMENTGRANTS 33Y• INCREASE ON2021 ENRICHMENT GRANTS £362.464 18 RAF STATION5 SUPPORTED 11.500 RAF CENTRAL FUND STATION AM8ASSADORS PERSONNEL SUPPORTED r6fcf org.uk | 19

RAF CENTRAL FUND

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INDIVIDUAL SPORTS GRANTS

Following on from the 2020 survey to understand the challenges that service life poses on accessing sports and physical activity. the Fund continued its review of the Individual Sports Grant programme to ensure that it remains impactful, relevant and helps to address some of the challenges raised.

A focus group met in 202 2 and the results included:

A survey was additionally sent out to all individual sports grant recipients to assess the impact of the grants. In relation to the grant programme enabling physical activity, enhancing their social life, relieving stress. helping mental health, increasing confidence and assisting with a healthy lifestyle. over 94% of respondents rated it "high" or "medium".

Specialist Sports continued to be the Fund's preferred supplier for Individual Sports Grants.

All Individual Sports Grants are endorsed and those that are a recognised association sport are endorsed by an appropriate committee member from the relevant association. In 2022. there were 193 association committee endorsers representing 54 sports.

TOTAL VALUE OF FUNDING AWARDED Q (INCLUDING GROUP GRANTS AND SKI CHAMPS) � £597,882 � !�E�E VALUEOF VALUE OF ON2021 911 RAF LEVEL DEVELOPMENT RAF LEVEL GRANTS LEVEL GRANTS DEVELOPMENT GRANTS £338,081[1,481 ] LEVEL GRANTS £236,277

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INDIVIDUAL SPORTS
GRANTS AWARDED
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RAF CENTRAL FUND // ANNUAL REPORT 2022 MECHANICS ENDOWMENT FUND The Mechanics Endowment Fund INEFI was amalgamated into the Fund in 2007. carrying the restriction that funds can only be utilised to provide benefit to RAF trainees. with an emphasis towards those trainees within the engineering disciplines where possible. £65.043 90Y• INCREASE ON2021 VALUE OF MEF GRANTS MEF GRANTS AWARDED tttttttttt PERSONNEL SUPPORTED THROUGH MEF GRANTS In 2022 the Fund continued to explore opportunities to collaborate with the RAF family of charities to generate mutually beneficial outcomes. r6fcf org.uk | 21

RAF CENTRAL FUND // ANNUAL REPORT 2022 MANAGE THE CHARITY AS EFFECTIVELY AND EFFICIENTLY AS POSSIBLE In partnership with the RAF Directorate of Sport and the RAF Sports Federation. the launch of a three-year funding cycle in 2022 reduced the administrative burden on RAF Sport Associations whilst giving them greater visibility of funding and improved confidence to make longer term decisions. Furthermore. it gave the Fund an opportunity to pool resources with other funding providers resulting in more personnel being supported and. along with the launch of the Fund's RAF Station ambassador scheme. gave greater visibility to the future needs of our beneficiaries. Partnerships are in place wlth sports equipment providers, clothing manufacturers. and other suppliers to help the funding pot go further in the years to come. The aim is to continue to be able to meet the needs of the Charity s beneficiaries whilst operating a balanced budget. Supplier reviews have also taken place to improve services to the Fund and its beneficiaries and to reduce costs where possible. The Fund has continued to increase flexibility and productivity through hybrid working and cloud computing, ceasing the need for its office lease requirements entirely, with the resultant savings further helping to improve the efficiency of the charity Training. appraisals and staff surveys took place to help ensure that staff feel supported and know that they ore appreciated and valued, resulting in a dedicated and effective workforce. The Ethnicity, Diversity and Inclusion plan has recently been updated and published on the website and is designed to promote fair opportunity for all and to ensure that the Fund benefits from as diverse a range ofexperience as possible. 2022 witnessed the continuation of improvements of operational policies and processes as well as financial and charitable governance of the Fund, Attendance by team members at the annual Gambling Commission and Lottery Council events and various webinars and seminars, allowed for existing policies and processes to be reviewed and, where appropriate, updated. The year also saw the review of the Charity s current Environmental. Social and Governance IESGI impact. with four Sustainable Development Goals identified to focus the Fund s future sustainability efforts as part of its target to achieve net zero by 2040 The Charity is committed to reducing its environmental impact. those within its direct control. as well as those indirectly arising from work with its berleficiaries. partners and suppliers. rafcf org.uk | 22

RAF CENTRAL FUND

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GROW AND SUSTAIN THE RESOURCES REQUIRED TO MEET THE NEEDS OF THE CHARITY'S BENEFICIARIES

THE RAF SPORTS LOTTERY

The RAF Sports Lottery. operating as a weekly Society Lottery. continues to be the number one source of income for the Fund. In 2022, there was a small increase in total players from 17,355 to 17.433 and overall gross Lottery income for the year was £2.9 million. which exceeded its budget.

The Lottery awards prizes totalling £18,000 each week and there were over 1040 winners in 2022. The cost of awarding these prizes. together with External Lottery Manager Fees and overhead costs totalled £1.201,137 (2021: £1,221.237) for the twelve months of play. The Lottery generated a net surplus during 2022 which was utilised in­ year within the individual Sports Grant programme.

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RAF CENTRAL FUND

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INVESTMENTS

The investment strategy seeks to protect in real terms the value of the investment portfolio at a level that will be able to deliver the desired income stream to finance expected annual expenditure.

In 2022, the strategy that was set out in 2021 enabled the charity to mitigate market volatility. The unrestricted investment income received in 2022 was £735,90 6 (2021: £740,715).

FUNDRAISING

To supplement the income generated by the RAF Sports Lottery, the Fund embarked on a three-year fund raising strategy to explore the level of additional income from more traditional fundraising initiatives. 2022 marked the final year of the current strategy and saw a small increase in total funds raised of £11,500 when compared with 2021.

Working with partner suppliers of sports equipment and clothing also continued in 2022. with the Fund's preferred supplier Specialist Sports continuing to make donations to the Fund. Specialist Sports also provide a mechanism for the Fund to reconcile grants which in turn helps improve our charity's financial governance.

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RAF CENTRAL FUND // ANNUAL REPORT 2022 SIGNIFICANTLY INCREASE AWARENESS In 2022, the Fund's Marketing Department continued its work to promote the Charity through awareness raising of its funding programmes and promotion of the Sports Lottery so that more serving RAF personnel could benefit from the charitable income generated. VIDEO 2022 saw the completion of a 5-minute film about the Fund that has proved to be a valuable communication tool and includes first-hand testimonials from beneficiaries. The video is hosted on YouTube and the RAFCF website where it can be downloaded and utilised for presentation opportunitie5 or shown on station information 5creen5. WEBSITE Data from the new charity website (delivered in Q3 20211 has demonstrated that by improving the user journey. overall traffic across the site has increased significantly. Page views are up by 17.50/0 Wlth the most viewed pages being the RAF Sports Lottery page followed by Sports Grants. Traffic has also increased on the News page thanks to regular content production signposted through social media. VEH rafcf org uk125

RAF CENTRAL FUND // ANNUAL REPORT 2022 NEWSLETTER Having spent considerable time overcoming issues to ensure emails distributed by a rnas5 mailing system landed in MOD inboxes. the first of now monthly e-newsletters was issued in October 2022. Going out to a distribution list of circa 16.500. this regular communication enables engagement with beneficiaries and supporters and directly delivers on the Fund's objective to increase awareness of its work, ADVERTISING Half-page Sports Lottery adverts are run every two weeks in RAF News including adverts designed to grab the attention of former serving and reservists. A resumption in the production of RAF Active Magazine and a partnership between the publication and the Charity provided guest editorial opportunities and further Sports Lottery registrations through full-page adverts. Social media advertising was trialled towards the end of 2022 with more planned in 2023. LOTTERY PRESENTATIONS Regular briefs were delivered to new recruits about the Fund and the RAF Sports Lottery with presentations delivered èt the Recruit Training Squadron IR TSI at RAF Halton and Initial Officer Training IIOTI at RAF Cranwell. Lottery registration was down slightly from 2021 across both groups which is believed to be a result of changes to the training programmes, with the average sign-up rate of RTS recruits falling from 75010 to around 50%. CENTRAL FUND LIN WHAT WOULD YOU DO WITH OUR £IO.000 WIIXLY JACKlbO RAFCOIIWIGMYaCOOISThEINAUOLWAL*AF EwTPALP￿D#7ILTIOW IPfAIT AWAIIO rafcf org uk | 26

RAF CENTRAL FUND // ANNUAL REPORT 2022 SOCIAL MEDIA The Central Fund's social media presence continued to grow with the Charity s main Facebook channel seeing an 80.50/0 increase in reach and page visits up by 120h in 2022. Instagram also saw an increase in reach and page visits. Heightened activity on both channels was seen as a resultof posts aboutthe RAF Sport Awards. 4p .1 AApep NEWILITTIA Posts about the FIAF Sport Awards saw our highest engagement levels of 2022. Monthly newslerter launch promotion. Faces of the Fund - stories from our beneficiaries highlighting our charity support. A•¢h F•E•bookP•yr•xh O InI￿r￿Mi•*Cho 117,568 6,756. oo 10.Q Akx12M422 knJl0S¢p790(129 Ox• kn22 12WI22 J￿7 AwlOSep19(klb t4( rafcf org uk | 27

RAF CENTRAL FUND // ANNUAL REPORT 2022 EVENTS The Fund continues to have a presence at Station Health & Wellbeing days, butfootfall remains low atthese events possibly due to more hybrid working post pandemic. A stand was trialled for the first time at Brize Fest with a view to doing more Family Day events if successful. Whilst engagement was high, Sports Lottery sign up was low and future events will be assessed on a case-by-case basis. 2022 also saw a return to RAF air shows and an RAFCF stand was pitched at both Cosford Air Showand RIAT. RAF SPORT AWARDS The RAF Sport Awards are an annual celebration of sporting achievements across the Service including individuals. teams. officials and administrators. Making its debut this year was the RAF Central Fund Station Sport Award. designed to recognise the best Station initiative to encourage and enable serving personnel to get physically active. The inaugural award went to RAF Coningsby, recognising their 'Coningsby Connected, initiative a multidisciplinary and flexible approach to physical and wellbeing provision. CENTRAL FUND Ir,11- Il rafcf org uk | 28

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RAF CENTRAL FUND // ANNUAL REPORT 2022 PLANS FOR FUTURE PERIODS The core vision of the Fund, to support and enrich the lives of those serving in the RAF today and on an enduring basis. continues to underpin the charity's strategic and operational direction. As the Board of Trustees continue to refine and prioritise the direction of the Fund. its central mission and vision remains,. to enable all serving RAF personnel to access sporting opportunities and physical activities with the aim of developing their full potential. Within this wide-reaching objective. the following aims have been defined as the next steps of the Fund's strategy and fundamental for the period ending 2023.. PARTNER WITH OTHER CHARITIES TO IMPROVE THE FUND'S REACH AND CLOSE FUNDING GAPS THROUGH JOINT VENTURES 2023 will see the coming together of the two charities that support the delivery of RAF sport with the RAF Sports Federation merging into the RAF Central Fund resulting in 8 simplification of processes for the RAF Sport Associations. Upon the successful completion of this piece of work, the Fund will look to start the phased amalgamation of the RAF Sports Association charitie5 Into the RAF Central Fund. This will result in a reduction in the administrative burden on beneficiaries, it will reduce charitable liabilities for association Trustees, and allow for better procurement and sponsorship opportunities to be enjoyed by sepoing personnel. MANAGE THE CHARITY AS EFFECTIVELY AND EFFICIENTL Y AS POSSIBLE The delivery of the Fund's sustainability plan will begin to help ensure that not only will the charity be around for at least another 100 years but that its work does not impact on the environment during that time. The Fund will continue to deliver and report on its work of rePreSernt￿ng the people we support by delivering on the charity's EDI action plan. This will ensure that the best people ère recruited so the charity can be as effective as possible. rafcf org.uk130

RAF CENTRAL FUND // ANNUAL REPORT 2022 GROW AND SUSTAIN THE RESOURCES REQUIRED TO MEET THE NEEDS OF BENEFICIARIES The charity will work with the RAF to deliver a CRM that will allow a greater understanding of who does land therefore who does not) participate in sport in the RAF. This data will inform our approach to sponsors and future grant funding will set the conditions for exploring the value of a formal sports membership model. Whilst fundraising. investments and the Sports Lottery will continue to be the primary income generation tools for the Fund. a new focus will be initiated towards sponsorship opportunities. INCREASE AWARENESS AND PAR TICIPATION OF THE SPOR TS LOTTERY The Lottery activities for 2023 will continue to deliver on the strategy of reaching new players with a focus on former-serving who left the RAF prior to it being run by an external society lottery provider and who wereautomatically cancelled upon departure. rafcf org.uk | 31

RAF CENTRAL FUND // ANNUAL REPORT 2022 WORK TOWARDS BECOMING A NET ZERO ORGANISATION In 2022. the Fund partnered with Pilio to help it set the conditions for becoming a net zero organisation. The RAF Central Fund. both as an organisation and as a charity supporting those on the frontlines of responding to this crisis. wants to do its part to support the transition to a sustainable future. The Fund identified the following four United Nations Sustainable Goals as those which it would be placing its focus on., l. Good Health and Wellbeing. 2. Gender Equality 3. Responsible Consumption and Production. 4. Climate Action. As part of the process of creating an action plan to support climate responsible sport for RAF personnel, the following sustainability objectives were set.. Measure and report our annual carbon footprint. Set a net zero target and roadmap. Decarbonise our properties. facilities. and events. Develop an understanding of the environmental impacts of the Sports we fund and opportunities for improvement. Support and encourage our grant recipients on climate and environmental campaigns. Work with our existing partners and suppliers to understand their environmental credentials and identify ways to reduce impacts. Communicate and engage with our grant recipients and partners on the sustainability actions we are taking and that we can take collectively The team calculated the Fund5 current carbon footprint and. in order to reduce this. will be using the action plan and objectives to inform decisions relating to all future plans. rafcf org.uk | 32

RAF CENTRAL FUND // ANNUAL REPORT 2022 LEGAL STATUS AND ORGANISATION CONSTITUTION The Fund is a registered charitable company limited by guarantee. a company registered in England and Wales 8555984, a charity registered in England and Wales 1152560 and a charity registered in Scotland SC044299. The Fund has one wholly owned subsidiary, RAF Central Fund Trading Ltd, which became active in 2018, details of which cari be found at the back of this report. GOVERNANCE The Fund is governed by its Board of Trustees as established within its Memorandum and Articles of Association dated 4 June 2013 las adopted by a special resolution passed as a written resolution on 29 March 20191 The Articles determine that the Board must consist of a minimum of three Trustees with a condition that a Serving Trustee cannot be appointed to the Board unless the number of non-serving Trustees is at least equal to the number of Serving Trustees subsequent to theappointment. Trustees are appointed by election at a Board General Meeting for a three-year term and can serve no more than three consecutive terms. A quorum of Trustees is required for the transaction of business which consists of at least two Non-serving Trustees and two Serving Trustees unless there is only one Non-serving Trustee appointed, whereby a quorum is one non-serving and one Serving Trustee. Trustees have established a clear policy and procedures for dealing with conflicts and the authorisation thereof, in accordance with Charity Commission guidelines. rafcf org.uk | 34

RAF CENTRAL FUND // ANNUAL REPORT 2022 TRUSTEE INDUCTION AND TRAINING All new trustees receive a personalised induction programme. The programme is designed to cover the key strategic aims of the Charity, its operational framework, finances. and future plans. The induction additionally provides details of the Charity s regulatory and statutory reporting requirements, including those of the Charity Commission. OSCR and Companies House. The Trustees are invited to an annual 'Away-Day' during which they review any significant updates of regulatory or governance importance. Trustees are encouraged to visit all Fund properties within twelve months of appointment and are Invited to attend a Grants Committee and Finance and Risk Committee meeting within the first year of appointment. Trustees are additionally invited to attend internal and suitable external Trustee training courses to ensure an appropriate and on-going understanding is maintained within the Board with regards to significant issues such as.. governance.. the role and responsibilities of the Trustees.. understanding charity finance and investments,. identifying and managing risks and strategic planning. r, rafcf org.uk | 35

,•*•

RAF CENTRAL FUND // ANNUAL REPORT 2022 MANAGEMENT AND COMMITTEES The Board of Trustees is responsible for setting the strategic direction of the Fund whilst the day-to-day managementof the Fund is the responsibility of the Chief Executive Officer. The Chief Executive Officer has delegated authority to determine operating policies. manage operational planning. budgets. property and staffing resources to support the strategic and policy framework of the Board and is responsible for the effective and efficient management of the Fund. Trustees delegate authority to the Chief Executive OFficer and the Chief Operating Officer to authorise budgeted expenditure to a limit of £50.000 and to approve items of un-budgeted expenditure subject to an Individual item maximum of E50.000 where this does not represent more than a IOO/¢ vèriance from approved financial forecasts. Details of significant un-budgeted expenditure approvals are presented to the Trustees at every Board meeting. The Trustees of the Fund have constituted four Committees. the Finance and Risk Committee.. the Grants Committee.. the Investment Committee and the Remuneration Committee in accordance with paragraph 11 of the Fund's Articles of Association. The Fund's Trustees set clear terms of reference for the Committees and receive regular reports on their activities. rafcf org.uk | 37

RAF CENTRAL FUND // ANNUAL REPORT 2022 THE FINANCE AND RISK COMMITTEE The Trustees delegate the oversight of the Fund's finance and risk governance and policies to the Finance and Risk Committee and to ensure these are aligned with the Fund's charitable and strategic objectlVe5. The Committee is required to meet at least biannually and met three times during 2022 to implement the Fund's financial strategy. The Trustees delegate authority to the Committee to approve budgeted expenditure in excess of £50.000 and major single items of unbudgeted expenditure to a maximum of £50.000. subject to an annual limit of £200.000. Details of all significant un-budgeted expenditure approvals are presented to the Trustees at every Board meeting. THE GRANTS COMMITTEE The Trustees delegate the disbursement of grants to the Grants Committee, The Grants Committee is required to meet at least biannually and met virtually to consider awards on three occasions during 2022. The Fund Trustees have delegated authority to award single grants up to £50,000 within the limits of their annual budget to the Committee. Details of Committee-considered grants are presented to the Trustees at every Trustee meeting. Where possible, a station contribution is made by capital project applicants and all requests for funding must be Supported by an application which includes details of project delivery, maintenance costs and a realistic business case where applicable. The Fund seeks to work closely with other Service charities such as the Nuffield Trust. the RAF Benevolent Fund. the RAF Charitable Trust and the Royal Air Forces Association to provide maximised benefit to the serving RAF community For projects that benefit personnel across multiple services. the Fund works closely with the Army and Navy charities to ensure inclusivity across Defence. rafcf org.uk | 38

RAF CENTRAL FUND // ANNUAL REPORT 2022 THE REMUNERATION COMMITTEE The Remuneration Committee was constituted by the Board of Trustees to provide an oversight, review and advisory role to the Board with regards to the remuneration of the Fund's senior management and employees. Meeting annually. the Remuneration Committee provides recommendations to the Board of Trustees with regards to all employee remunerations, including key management personnel. based on an annual review of sector benchmarks. The Committee remain cognisant of the Fund's intent to attract and retain talented and committed employees who can help the Fund realise its objectives to maximise support to RAF personnel both now and into the future, To achieve this, the Remuneration Committee seeks to ensure salaries reflect the appropriate market rate of pay for 8 comparable job in the relevant job market and are subject to regular review to ensure employee rewards remain appropriate. THE INVESTMENT COMMITTEE The Investment Committee was constituted by the 8oard of Trustees to provide an oversight. review and advisory role to the Board with regards to the Funds, investments. The Committee is required to meet biannually and met five times during 2022 to continue the implementation of the Fund's Investment strategy. The Committee is established to oversee the Fund's investment governance, including philosophy. risk appetite and policies. and ensure these are aligned with the Fund's charitable and strategic objectives. The Trustees authorise the Committee to monitor the Fund's investments against the Fund's investment philosophy. risk appetite and policies. rafcf org uk | 39

RAF CENTRAL FUND // ANNUAL REPORT 2022 RISK MANAGEMENT The Trustees review the major risks facing the Fund within the annual business planning process and to identify significant risks to the Fund. implementing procedures to both mitigate risk and to minimise potential Impact should they materialise. In addition to pre-existing ones. in 2022 the Trustees identified the following new risk.. Merging with Sports Federation places additional risks on the Fund The merger risk is being mitigated by a separate risk register which currently contains 18 identified risks each with specific mitigating actions. INFLATION The 2023 budget was set in late Q3 2022 in line with predicted increased Consumer Price Index of Iooh. Since then, this level has slightly further increased but within acceptable levels. The Trustees have added excessive inflation to the risk register and. with the Executive. set in place a series of measures to mitigate this risk. rafcf org.uk | 41

.A GINts!s*-

RAF CENTRAL FUND

ANNUAL REPORT 2022

II

REVIEW

LONG TERM INCOME PROTECTION

The investment strategy provides long term income protection and preserves in real terms the principal value of the investment portfolio to meet expected annual expenditure.

When changes to the market occur, the strategy is reviewed to ensure the funds invested continue to meet forecast yields and estimated income needs.

DIRECT COSTS

Direct costs have routinely been met from unrestricted investment income generated in the year of application. Trustees have therefore been content to maintain zero unrestricted reserves. The balance of the expendable endowed fund at year-end was £46,048.510 (2021: £47,605.346), of which £42,533,342 (2021: £44.559. 177) represented invested funds.

The Fund has the following restricted fund

• Mechanics Endowment Fund

Funds whereby expenditure is restricted for the benefit of RAF trainees, especially those in the engineering disciplines.

rafcf.org.uk I 43

RAF CENTRAL FUND

ANNUAL REPORT 2022

II

FINANCIAL RESERVES

The application of the long-term income protection policy has historically allowed the Fund to maintain the expendable endowment fund at a level whereby the Trustees have been able to apply a policy of meeting direct expenditure through application of the investment income generated.

To generate income to support the enrichment grants programme and Fund administrative, governance and support costs and being cognisant of specialist advice regarding investment income returns, the Board deem it appropriate and necessary to maintain invested reserves at a level of approximately £45 million within total reserves of approximately £46 million.

At the year-end the Fund held total reserves of £46,525.631 including invested reserves of £43,010,563. The Trustees are content that the closing 2022 reserves balance of £46,525.631 is appropriate. given the current volatility in the investment markets and economic climate.

The reserves policy is subJect to annual review. The balance sheet confirms that the Fund has adequate working capital to meet any obligations as they fall due.

rafcf.org.uk I 44

RAF CENTRAL FUND // ANNUAL REPORT 2022 TRUSTEES. RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS Company law requires the Trustees Iwho are also directors of the Royal Air Force Central Fund for the purposes of company lawl to prepare financial statements that give a true and fair view of the situation of the charitable company at the end of the financial year and of its deficit for the financial year. In doing so the Trustees are required to". Select suitable accounting policles and apply them consistently. Make Sound judgements and estimates that are reasonable and prudent. State whether applicable accounting standards and Statements of Recommended Practice have been followed subject to any material departures disclosed and explained in the financial statements. Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation. The Trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time, the financial position of the Charity and enable them to ensure the financial statements comply with the Companies Act 2006. the Charities and Trustee Investment Iscotlandl Act 2015 and the Charities Accounts (Scotlandl Regulations 2006. The Trustees are also responsible for the safeguarding of the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. rafcf org.uk | 46

RAF CENTRAL FUND

ANNUAL REPORT 2022

II

In accordance with Company law. the Fund's Trustees certify:

RAF Central Fund complies with the Fundraising Standards Board Requirements and only utilising agencies that are compliant with the Fundraising Regulations. We aim to meet the highest standards so that supporters and volunteers give and fundraise for the Fund with confidence. No complaints have been received in respect of fund raising during 2022.

AUDITORS

Mazars LLP acted as the Fund auditors during the year.

This report has been prepared in accordance with the special provisions of the Companies Act 2006 relating to small companies. The Trustees' and Strategic Report for the year ended 31 December 2022 was approved by the Trustees in their capacity as the Company Directors and signed on behalf of the Trustees:

Group Captain M Williams Trustee and Member of the Finance and Risk Committee

Dated: 18 July 2023

rafcf.org.uk I 4 7

Independent auditor’s report to the members of Royal Air Force Central Fund

Opinion

We have audited the financial statements of Royal Air Force Central Fund (‘the parent charity’) and its subsidiary (‘the group’) for the year ended 31 December 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the Consolidated Statement of Cash Flows and 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 FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

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

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s or the parent charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Report of the Trustees, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, 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 course of 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors’ Report included within the Report of the Trustees.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the trustees’ responsibilities statement set out on pages 46 – 47, the trustees (who are also the directors of the parent charity for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that

49

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 are responsible for assessing the group’s and the parent 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 charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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 the financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

Based on our understanding of the charity and its sector, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: the Charities Act 2011, tax legislation, safeguarding, pensions legislation, employment regulation, health and safety regulation, anti-bribery, corruption and fraud and anti-money laundering regulation.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as The Charities Statement of Recommended Practice and the Companies Act 2006.

In addition, we evaluated the trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, income recognition (which we pinpointed to the cut-off assertion), and significant one-off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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

Use of the audit report

This report is made solely to the charity’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s members as a body for our audit work, for this report, or for the opinions we have formed.

Nicola Wakefield (Senior Statutory Auditor)

for and on behalf of Mazars LLP

Chartered Accountants and Statutory Auditor

6 Sutton Plaza, Sutton Court Road, Sutton, Surrey SM1 4FS Date: 26 September 2023

50

Consolidated Statement of Financial Activities (incorporating the Income and Expenditure Account) for the year ended 31 December 2022

Note
2
Donations
Other Income
3
10
Charitable Activities
Raising Funds
Sports Lottery Operations & Fundraising Trading
Trading Activities
Investment Management Costs
Total Expenditure
Net loss on investments
Net Income/(Expenditure)
Transfers between Funds
Net Movement in Funds
Total Funds Bought Forward
Total Funds Carried Forward
Investment Income
Total Income
Expenditure
Income
Charitable Activities
Trading Activities		 Unrestricted
Fund
Expendable
Endowment
Fund Restricted Fund
Total 2022
Total 2021
£
£
£
£
£		 Unrestricted
Fund
Expendable
Endowment
Fund Restricted Fund
Total 2022
Total 2021
£
£
£
£
£		 Unrestricted
Fund
Expendable
Endowment
Fund Restricted Fund
Total 2022
Total 2021
£
£
£
£
£		 Unrestricted
Fund
Expendable
Endowment
Fund Restricted Fund
Total 2022
Total 2021
£
£
£
£
£		 Unrestricted
Fund
Expendable
Endowment
Fund Restricted Fund
Total 2022
Total 2021
£
£
£
£
£
370,952 - - 370,952 179,506
264,374 - - 264,374 98,894
3,067,206 - - 3,067,206 3,118,944
735,906 - 1,444 737,350 741,234
2,440 - - 2,440 28,312
4,440,878 - 1,444 4,442,322 4,166,890
2,918,060 - 65,043 2,983,103 3,048,678
1,199,957 - - 1,199,957 1,227,638
124,904 - - 124,904 59,162
- 341,566 - 341,566 293,427
4,242,921 341,566 65,043 4,649,530 4,628,905
- -1,413,227 - -1,413,227 3,838,484
197,957 -1,754,793 -63,599 -1,620,435 3,376,469
-197,957 197,957 - - -
- -1,556,836 -63,599 -1,620,435 3,376,469
- 47,605,346 540,720 48,146,066 44,769,597
- 46,048,510 477,121 46,525,631 48,146,066

There were no recognised gains or losses in either year other than those included in the Statement of Financial Activities.

All income and expenditure is derived from continuing activities in both years.

The notes on pages 54 to 68 form part of these financial statements.

51

Consolidated and Charity Balance Sheets as at 31 December 2022

Note
Fixed Assets:
Intangible Assets
8
Tangible Assets
9
Heritage Assets
9
Investments
10
Total Fixed Assets
Current Assets:
Debtors
11
Cash at Bank and in Hand
Investments
10
Total Current Assets
Creditors:Amounts Falling due Within One Year
Net Current Assets
Total Assets less Current Liabilities
Net Assets
13
Reserves
Expendable Endowment Funds
Restricted Funds
12
Total Funds		 Group Total 2022Group Total 2021
£
£
9,253
21,506
1,659,427
1,733,337
47,016
47,016
43,010,563
45,125,897
44,726,259
46,927,756
549,680
512,125
2,676,184
2,256,047
-
-
3,225,864
2,768,172
1,426,492
1,549,862
1,799,372
1,218,310
46,048,510
48,146,066
46,048,510
48,146,066
46,048,510
47,605,346
477,121
540,720
46,525,631
48,146,066		 Group Total 2022Group Total 2021
£
£
9,253
21,506
1,659,427
1,733,337
47,016
47,016
43,010,563
45,125,897
44,726,259
46,927,756
549,680
512,125
2,676,184
2,256,047
-
-
3,225,864
2,768,172
1,426,492
1,549,862
1,799,372
1,218,310
46,048,510
48,146,066
46,048,510
48,146,066
46,048,510
47,605,346
477,121
540,720
46,525,631
48,146,066		 Charity Total 2022Charity Total 2021 Charity Total 2022Charity Total 2021
9,253 21,506
1,659,427
1,733,337
47,016 47,016
43,010,563 45,125,897
44,726,259 46,927,846
493,152 432,290
2,643,847
2,056,462
- -
3,136,999
2,488,752
1,353,281
1,455,695
1,783,718 1,033,057
46,509,977 47,960,813
46,509,977 47,960,813
46,032,856
47,420,093
477,121
540,720
46,525,631 48,146,066 46,509,977 47,960,813

The Financial Statements have been prepared in accordance with the special provisions of the Companies Act 2006 relating to small companies. The notes on pages 54 ‐ 69 form part of these Financial Statements. The Financial Statements on pages 51 - 69 were approved by the Board of Trustees on 18th July 2023 and were signed on their behalf by:

Group Captain M Williams Trustee and Chair of the Finance and Risk Committee

52

Consolidated Statement of Cash Flows for the year ended 31 December 2022

Cash flow from Operating Activities
Net cash used in operating activities
Cash flows from Investing Activities:
Dividend Receipts
Investment management costs
Fixed assset Additions
Intangible fixed asset additions
Proceeds from Sale of Investments
PaymentforPurchaseofInvestments
Net cash provided by investing activities
Loss/(Gains) on Investments
Investment Income
Investment Management Fees
Depreciation/Amortisation
(Increase)/ Decrease in Debtors
(Decrease) in Other Creditors
Net Cash used in operating activities
Change in Cash & Cash Equivalents
Cash & Cash Equivalents at 1 January
Cash & Cash Equivalents as at 31 December
Notes to the Cash Flow Statement
Reconciliation of net (Expenditure)/Income to net cash flow
from operating activities
Net(Expenditure)/Income for the period
Adjustment for:		 2022
£
-673,866
735,906
-113,195
-3,887
-
7,678,182
-7,203,003
1,094,003
420,137
2,256,047
2,676,184
2022
£
-1,620,435
1,413,227
-737,350
341,566
90,050
-37,555
-123,369
-673,866		 2021
£
-456,181
741,234
-293,427
-29,135
-18,505
39,989,015
-39,284,749
1,104,433
648,252
1,607,795
2,256,047
2021
£
3,376,469
-3,838,484
-741,234
293,427
128,896
512,855
-188,110
-456,181

Analysis of Cash & Cash Equivalents

Cash in hand
Total Cash & Cash Equivalents		 31 December
2021
Cash flow
£
£
2,256,047
420,137
2,256,047
420,137		 31 December
2022
£
2,676,184
2,676,184

53

Notes to the Financial Statements for the Year to 31 December 2022

Principal Accounting Policies 2022

The financial statements have been prepared in accordance with the applicable Accounting Standards in the United Kingdom, the Accounting Regulations issued under the Charities Act 2011, the Statement of Recommended Practice: “Accounting and Reporting by Charities (FRS102)" and the Companies Act 2006. A summary of the significant accounting policies is set out below.

The RAF Central Fund meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). The Trustees consider it appropriate for these accounts to be prepared on the going concern basis.

The trustees have reviewed detailed cash flow projections to 30 June 2024 and have agreed detailed budgets for the year ended 31 December 2023. Both sources of income and types of expenditure have been reviewed. Whilst one of the main charitable purposes of the Fund is to support current RAF personnel through individual grants and grants to the sports associations, the level of this necessary expenditure is at the discretion of the trustees and can be adjusted during the year. The trustees have also considered the Group's working capital and capital expenditure requirements. As a result of the foregoing the trustees are satisfied that it is appropriate to prepare the accounts on a going concern basis.

Historical Cost Convention

The financial statements are prepared under the historical cost convention as modified by the revaluation of investments to market values and are in accordance with the Statement of Recommended Practice. “Accounting and Reporting by Charities (FRS102)”, applicable Accounting Standards and the Charities Act 2011.

Consolidation

The wholly owned trading subsidiary of the Royal Air Force Central Fund, the Royal Air Force Central Fund Trading Ltd (company number: 08747522) became non-dormant in 2018. On this basis, the financial statements are consolidated.

Income

Investment income is accounted for when received and comprises dividend income and interest on cash deposits.

Endowed grants are funds returned to the charity following the rare occurrence of a closure of an RAF unit and are recognised as soon as receipt is probable and the value of the returned grant monies can be reliably measured.

Other income is recognised on an accruals basis in accordance with the income recognition requirements of FRS102.

Expenditure

All expenditure is accounted for on an accruals basis and is recognised when there is a legal or constructive obligation for the charity to make payment. All costs have been directly attributed to the functional categories of expenditure in the Statement of Financial Activities.

Any irrecoverable VAT is charged to the Statement of Financial Activities, or capitalised as part of the cost of the related asset, where appropriate.

Costs of raising funds includes investment manager's fees, the costs of running the RAF Sports Lottery, including prizes and the costs incurred in marketing the Sports Lottery.

54

Notes to the Financial Statements for the Year to 31 December 2022

Expenditure (continued)

Charitable activities consists of grant awards and associated direct and indirectly allocated support costs. Grants payable are charged to the Statement of Financial Activities in the year in which the offer is conveyed to the recipient.

Support costs consist of salary and other expenditure incurred to facilitate the administration and governance of the charity. Support costs are directly attributed to activities where it is possible to allocate to the activity on a basis of use of resource. Where it is not possible to directly attribute support costs, these are apportioned by the estimated percentage of time utilised by employees on each activity.

Taxation Status

The charity is exempt from corporation or income taxation based on the charity applying all of its income and gains for wholly charitable purposes.

Intangible Fixed Assets

Intangible Fixed assets are measured at cost less accumulated amortisation.

Software development costs are recoginsed as an intangible asset when all of the following criteria are demonstrated:

Amortisation is charged so as to allocate the cost of intangibles less their residual values over their estimated useful lives, using the straight-line method.

The intangible assets are amortised over the following useful economic lives:

55

Notes to the Financial Statements for the Year to 31 December 2022

Tangible Fixed Assets and Depreciation

The cost of tangible fixed assets is their purchase cost, together with any incidental expenses of acquisition.

Due to the unique nature of the charity's properties, they are held at carrying value as there is no available market value or methodology to reliably measure their fair values. The Trustees consider that the realisable value of the property is well in excess of its carrying value and accordingly any depreciation charge is immaterial.

It is the Fund's policy to capitalise all assets with a combined purchase value in excess of £5,000.

Depreciation is calculated on a straight line basis across the expected useful life of the asset class:

Website and Application Development 2 years
Computers and Information Technology 3 years
Fixtures & Fittings
Buildings		 10 years
30 years

Depreciation is not charged in the year of acquisition, with a full year charged in the year of disposal.

The charity owns a number of items of heritage silverware, including the Fincastle Trophy and Gill Sword which are loaned to RAF Messes, units and individuals to promote and support esprit de corps. These items hold significant cultural importance to the Royal Air Force and are capitalised in the accounts in line with their insurance valuation and are not depreciated due to the enduring life scale. The Fund additionally owns two paintings which hang in the Ministry of Defence building in London.

Investments and Gains and Losses on Investments Assets

Quoted investments and investment property are stated at market value at the balance sheet date.

Gains and losses arising on investment assets, both through sale and changes in valuation, are taken to the Statement of Financial Activities in the year they occur. Gains include cash rebates received by the charity for retail investment management fees arising from holding in-house funds; the charity pays institutional investment management fees based on the capital value of the charity's investment portfolio.

Funds Structure

The expendable endowment fund represents the original capital of the charity. This is maintained wherever possible. Income from the endowment fund is unrestricted.

The restricted fund represents the Mechanics Fund. These funds may only be used for the benefit of trainees, especially those in the engineering disciplines.

Pensions

The Fund operates a defined contribution workplace pension scheme for the benefit of all eligible employees.

The assets of the scheme are administered by an independent pension provider, with employer pension payments recognised as an expense during the year of payment.

Since 2014 the charity makes contributions towards the costs of pensions being paid to previous past employees of a by analogy Principal Civil Service Pension Scheme (PCSPS). Entry to the scheme is closed to new employees of the charity.

56

Notes to the Financial Statements for the year-ended 31 December 2022

Note 1 Statement of Financial Activities Analysis for the year-ended 31 December 2021

Trading Activity
Investment Management Costs
Sports Lottery Operations & Fundraising Trading
Raising Funds
Total Expenditure
Net gains on investments
Net (Expenditure)/Income
Transfers between Funds
_Net Movement in Funds_Total
Funds Bought Forward Total
Funds Carried Forward
Total Income
Income
Donations
Charitable Activities
Trading Activities
Investment Income
Other Income
Expenditure
Charitable Activities		 Unrestricted
Fund
Designated
Fund
Expendable
Endowment
Fund
Restricted
Fund
Total 2021
£
£
£
£
£		 Unrestricted
Fund
Designated
Fund
Expendable
Endowment
Fund
Restricted
Fund
Total 2021
£
£
£
£
£		 Unrestricted
Fund
Designated
Fund
Expendable
Endowment
Fund
Restricted
Fund
Total 2021
£
£
£
£
£		 Unrestricted
Fund
Designated
Fund
Expendable
Endowment
Fund
Restricted
Fund
Total 2021
£
£
£
£
£		 Unrestricted
Fund
Designated
Fund
Expendable
Endowment
Fund
Restricted
Fund
Total 2021
£
£
£
£
£
134,506 45,000 - - 179,506
2,119 96,775 - - 98,894
239,123 2,879,821 - - 3,118,944
740,715 506 - 13 741,234
28,312 - - - 28,312
1,144,775 3,022,102 - 13 4,166,890
1,332,311 1,682,091 - 34,276 3,048,678
6,401 1,221,237 - - 1,227,638
59,162 - - - 59,162
- - 293,427 - 293,427
1,397,874 2,903,328 293,427 34,276 4,628,905
- - 3,838,484 - 3,838,484
-253,099 118,774 3,545,057 -34,263 3,376,469
253,099 -353,424 100,325 - -
- -234,650 3,645,382 -34,263 3,376,469
- 3,819,692 40,374,922 574,983 44,769,597
- 3,585,042 44,020,304 540,720 48,146,066

57

Note 2 Income

2022
2021
£
£
370,952
179,506
-
370,952
179,506
264,374
98,894
-
-
264,374
98,894
2,896,177
2,879,821
Other Trading Income
171,029
239,123
3,067,206
3,118,944
737,350
741,234
-
-
737,350
741,234
2,440
28,312
-
-
2,440
28,312
Dividends on Investments
Investment Dividend Tax Reclaims
Total
Miscellaneous Receipts
Total
Creditor Write-off
Returned Grants
Hire of Fund Welfare Facilities
Total
Lottery Ticket Sales
Total
Analysis
Donations
Total
Government Grant
-		 2022
2021
£
£
370,952
179,506
-
370,952
179,506
264,374
98,894
-
-
264,374
98,894
2,896,177
2,879,821
Other Trading Income
171,029
239,123
3,067,206
3,118,944
737,350
741,234
-
-
737,350
741,234
2,440
28,312
-
-
2,440
28,312
Dividends on Investments
Investment Dividend Tax Reclaims
Total
Miscellaneous Receipts
Total
Creditor Write-off
Returned Grants
Hire of Fund Welfare Facilities
Total
Lottery Ticket Sales
Total
Analysis
Donations
Total
Government Grant
-		 2022
2021
£
£
370,952
179,506
-
370,952
179,506
264,374
98,894
-
-
264,374
98,894
2,896,177
2,879,821
Other Trading Income
171,029
239,123
3,067,206
3,118,944
737,350
741,234
-
-
737,350
741,234
2,440
28,312
-
-
2,440
28,312
Dividends on Investments
Investment Dividend Tax Reclaims
Total
Miscellaneous Receipts
Total
Creditor Write-off
Returned Grants
Hire of Fund Welfare Facilities
Total
Lottery Ticket Sales
Total
Analysis
Donations
Total
Government Grant
-
Donations Donations 370,952 179,506
Government Grant - -
Total 370,952 179,506
Charitable Activities Returned Grants 264,374 98,894
Hire of Fund Welfare Facilities -
-
Total 264,374 98,894
Trading Activities Lottery Ticket Sales 2,896,177 2,879,821
Other Trading Income 171,029 239,123
Total 3,067,206 3,118,944
Investment Income Dividends on Investments 737,350 741,234
Investment Dividend Tax Reclaims -
-
Total 737,350 741,234
Other Income Miscellaneous Receipts 2,440 28,312
Creditor Write-off -
-
Total 2,440 28,312

All Amounts relate to unrestricted income with the exception of £1,444 (2021: £13) of investment income which is allocated to restricted funds.

Note 3 Expenditure

2022
2021
£
£
Analysis		 2022
2021
£
£
Analysis		 2022
2021
£
£
Analysis
Raising Funds RAF Sports Lottery Operations 1,201,137 1,221,237
Fundraising Activity -1,180 6,401
Investment Management Fees 341,566 293,427
Trading Company Activity 124,904 59,162
Total 1,666,427 1,580,227
Charitable Activities* Enrichment Facilities and Projects 143,125 248,876
Sports Association Grants 1,397,609 1,207,114
Development Through Sports Grants 897,871 474,977
Sports Facilities 541,372 429,205
Grants to Service Support Charities 3,126 688,506
Total 2,983,103 3,048,678

58

Note 4 Support Costs

Raising Funds
£		 Charitable Activity
£		 Total Cost
2022
£		 Total Cost
2021
£
Staff Costs 95,715
390,041
485,756		 469,978
Other Costs 36,857
247,233
284,090		 236,206
Total 132,572 637,274 769,846 706,184

The support cost elements of staff and other expenses have been attributed on a basis consistent with the use of resources. Where costs cannot be allocated directly to activities, they are apportioned by the estimated percentage of time spent by each employee on each activity.

Support costs are included in the overall expenditure totals for each activity at Note 3.

Note 5 Audit Fees

2022
£		 2021
£
Auditors' Fees for Reporting on the Accounts - Charity 15,840 14,400
Auditors' Fees for Reporting on the Accounts - Trading Subsidiary 2,500 1,800
Other fees payable to auditors 4,173 6,110
Total 22,513 22,310

Note 6 Trustees & Employees

6.1 Staff Costs 2022
£		 2021
£
Wages and Salaries 434,015 422,411
Employer’s National Insurance Costs 43,059 39,402
Employer's Pension Costs 8,681 8,165
Total Staff Costs 485,756 469,978

59

Note 6.1 (continued)

1 employee earned between £70,001 and £80,000 during the period (2021: 1, 60,001 and £70,000). 1 employee earned between £110,001 and £120,000 during the period (2021: 1, 100,001 and 110,000).

The Fund made payment to its key management personnel of £181,153 during 2022 (2021: £177,244).

2022
2021
Average
Average
6.2 Average Headcount		 2022
2021
Average
Average
6.2 Average Headcount		 2022
2021
Average
Average
6.2 Average Headcount
Full-Time 8.00 9.60
Part-Time 4.00 2.30
Total
12.00		 11.90

6.3 Payments to Trustees

Trustees neither received nor waived any emoluments during 2022 (2021: £nil). Out of pocket expenses were reimbursed to Trustees amounting to £120.70 (2021: £Nil).

Note 7 Grants

Grants
2022
£
Support
Costs
2022
£

Total Grants
2022
£
Total Grants
2021
£
Enrichment Facilities and Projects 19,521 123,604 143,125 248,876
Sports Association Grants 1,223,003 174,606 1,397,609 1,207,114
Development Through Sports Grants 759,740 158,130 897,870 474,977
Sports Facilities 343,565 197,807 541,372 429,205
Grants to Service Support Charities - 3,127 3,127 688,506
Total 2,345,829 637,274 2,983,103 3,048,678

60

Note 7 Grants (continued)

Grants made to Institutions

Grants Institutions with a value in excess of £25,000 are shown individually:

Grant Award
2022
£
Grant Award
2021
£
RAF Akrotiri - 53,000
RAF Benson - 39,586
RAF Boulmer - 54,027
RAF Brize Norton - 64,935
RAF Coningsby 35,268 38,480
RAF Cosford 67,943 55,785
RAF Cranwell 50,000 29,316
RAF Halton - 54,399
RAF High Wycombe -
33,996
RAF Honington -
38,300
Deployed Forces 29,415 91,873
RAF Leeming 24,660 33,500
RAF Lossiemouth 35,000 38,600
RAF Marham - 30,258
RAF Odiham - 69,500
RAF Valley - 32,650
RAF Waddington 30,316 38,800
RAF Wittering - 29,000
RAF Angling Association 48,485 51,341
RAF Bobsleigh, Luge and Skeleton Association 105,911 106,960
RAF Equitation 29,235 33,880
RAF Football Association 37,181 32,555
RAF Gliding & Soaring Association 36,857 36,857
RAF Golf Association 34,599 34,599
RAF Microlight Flying Sports Association 59,250 25,850
RAF Motor Sports Association 103,448 92,241
RAF Nordic Association 25,747 -
RAF Rowing Association 26,764 -
RAF Rugby Union Association - 10,200
RAF Sailing Association 57,089 89,875
RAF Small Arms Association 56,625 53,645
RAF Sports Parachuting Association 38,152 18,877
RAF Swimming Association 44,144 38,194
RAF Waterski & Wakeboard Association 25,111 25,111
RAF Winter Sports Association 89,467 51,171
Others 541,329 473,100
Other stations grants from Gift aided profit 115,951 154,500
Total Grants 1,747,947 2,154,961

During the year 2,393 Grants were made to Individuals (2021:1,536) at a value of

£597,882 (2021: £341,905) to enable access to sport and physical activity.

61

Note 8 Intangible Fixed Assets

Cost bought forward at 1 Jan
22
Additions
Disposals
Cost carried forward at 31
Dec22
Amoritisation bought forward
at 1Jan 22
Provision for Year
Released on disposal
Amortisation carried forward at
31 Dec 22
Net Book Value bought
forward at 1 Jan 22
Net Book Value carried
forward at 31 Dec 22		 Software
Development
£
43,387
-
-
43,387
Net Book Value bought
forward at 1 Jan 22		 21,506
Net Book Value carried
forward at 31 Dec 22		 9,253

Note 9 Tangible Fixed Assets

Freehold land &
buildings
£
Computers &
Information
Technology
£

Fixtures &
Fittings
£
Heritage Assets
£		 Total
£
Cost bought forward at 1 Jan 22 1,661,484 29,342 236,064 47,016 1,973,906
Additions -
3,887
-
-
3,887
Disposals -
-
-
-
-
Cost carried forward at 31 Dec 22 1,661,484 33,229 236,064 47,016 1,977,793
Depreciation bought forward at 1 Jan 22 96,218
20,898
76,437
-
193,553
Provision foryear 49,665
4,488
23,644
-
77,797
Released on disposal -
-
-
-
-
Depreciation carried forward at 31 Dec 22 145,883 25,386 100,081 -
271,350
Net Book Value bought forward at 1 Jan 22 1,565,266 8,444 159,627 47,016 1,780,353
Net Book Value carried forward at 31 Dec 22 1,515,601 7,843 135,983 47,016 1,706,443

Freehold land and buildings consists of the charity's properties at: Vine Lane; Danesfield and Feshiebridge Lodge.

The Fund additionally owns the Halton Tennis Centre. In 2007 the Trustees signed a 999 year agreement to lease the Centre to the RAF Lawn Tennis Association. The agreement places the responsibilities for the maintenance, insurance and upkeep of the property with the Association as the tenant. In accordance with FRS102, the carrying value of the Halton Tennis Centre, being the cost of purchase of the Centre from the Secretary of State in 2007 of £255,200 is not recognised in the financial statements as the charity has no rights or responsibilities with regards to the property until the lease completes in 3006.

Vine Lane was donated to the Fund on 1 July 1964 and is currently utilised under licence from the Fund by the RAF Cricket Association as the Home for Sport for RAF Cricket.

The land at Danesfield was originally purchased in conjunction with the Nuffield Trust for the Forces of the Crown ('the Nuffield Trust'). The site was wholly made over to the Fund under a deed dated March 1982, with the Fund acquiring the totality of the site for a cost of £26,300. The site is currently utilised under licence from the Fund by the RAF Rowing and Canoeing Associations as the Homes for Sport for RAF Rowing and Canoeing and by 22 Group (RAF) to provide facilities for force development and adventurous training for RAF personnel.

Feshiebridge Lodge was purchased in 1989 for £139,187. The asset has been included in the balance sheet at £139,187. Originally purchased as an adventure training centre, the Lodge is now wholly focussed on providing an enrichment welfare and recreational centre for personnel and their families. Work was completed on the site in 2020. Costs incurred were £1,489,947.

62

Note 10 Investments

10.1 Fixed Assets Investments 2022
£		 2021

£
Carryingvalue bought forward 45,125,897 41,991,679
Additions to investments at cost 7,204,446 39,284,749
Disposals at carryingvalue -7,678,182 -39,989,015
Management Fee -228,371 -
Realisedgain on sale 127,519 1,432,767
Unrealised revaluation movement -1,540,746 2,405,717
Carryingvalue carried forward 43,010,563 45,125,897
Historic cost as at 31 December 41,833,623 42,906,801
10.2 Analysis of Investments Market value
31 December
2022
£

Market value
31 December
2021
£

Income from
Investments
2022
£

Income from
Investments
2021
£
Allianz Portfolio Investments -
-
-
162,520
CCLA Investments 149,401 147,957 1,444 13
Blackrock Charinco Common Investment Fund 15,328 15,328 350 506
Insight Global ABS Fund 1,744,097 5,683,819 41,624 116,131
Savills - Charities PropertyFund 3,851,286 4,180,367 160,259 154,822
Marathon - Distressed Credit Fund 2,461,739 1,639,830 -
-
Ardevora 1,266,300 1,517,888 21,245 -
Baillie Gifford 1,128,292 1,444,214 -
7,204
LGIM 9,288,992 13,311,297 175,327 100,125
Barings 5,320,421 6,323,110 337,101 199,914
Beachpoint 5,759,574 5,802,757 -
-
Knightsbridge 747,318 309,330 -
-
JP Morgan -IIF Uk 1 5,161,985 4,750,000 -
-
IFM 6,115,831 -
-
-
Total 43,010,563 45,125,897 737,350 741,234

63

Notes to the Financial Statements for the Year ended 31 December 2022

10.3 Material Investment Holdings

The following investments represent material holdings in excess of 5% of the portfolio at the period end within the total investment portfolio (excluding direct property investments):

Market Value £ Percentage of
Portfolio
Savills - Charities Property Fund 3,851,286 9%
Marathon - Distressed Credit Fund 2,461,739 6%
LGIM 9,288,992 22%
Barings 5,320,421 12%
Beachpoint 5,759,574 13%
JP Morgan - IIF UK 1 5,161,985 12%
IFM 6,115,831 14%

Note 11 Debtors and Prepayments

Group

Analysis of Debtors 2022
£		 2021
£
Trade Debtors 89,172
109,318
Prepayments and Accrued Income 460,508 402,807
Total 549,680
512,125

Charity

Analysis of Debtors 2022
£		 2021
£
Trade Debtors 47,447
43,295
Prepayments and Accrued Income 445,705 388,995
Total 493,152 432,290

Accrued income represents the net of monies collected by the charity's External Lottery Manager from RAF Sports Lottery players during December, not yet received by the Fund or utilised in play and the Investment dividends for Q4 2022, payable in Q1 2023.

Note 12 Creditors and Accruals

Group

12.1 Analysis of Creditors falling due within one year 2022
£		 2021
£
Committee Grant Creditors -
118,043
Sports Grant Creditors 1,024,663 1,032,595
Tax and Social Security Creditors 11,819 11,672
Accruals and Deferred Income 357,656 301,062
Other Creditors 32,354 86,490
Total 1,426,492 1,549,862

64

Charity

12.2 Analysis of Creditors falling due within one year 2022
£		 2021
£
Committee Grant Creditors -
118,043
Sports Grant Creditors 1,024,663 1,032,595
Tax and Social Security Creditors 11,819 11,672
Accruals and Deferred Income 290,645 234,538
Other Creditors 26,154 58,847
Total 1,353,281 1,455,695

65

Note 13 Funds

13.1 Funds Held

Fund Name Type Purpose and Restrictions
Expendable Endowment Expendable
Endowment		 Expendable Endowment for RAF Central Fund - Unrestricted.
Restricted Funds Restricted Monies transferred into the RAF Central Fund upon close of the Mechanics Endowment
Fund. Restricted for the benefit of RAF trainees, especially those in the engineering
disciplines.

Note 13.2 Funds

13.2 Movements of Major Funds

Fund Names Fund balances
bought forward
£		 Income
£		 Expenditure
£		 Transfers
£		 Gains and losses
£		 Fund balances
carried forward
£
General Reserves - 4,440,878 -4,242,921 -197,957 - -
Expendable Endowment
Fund		 47,605,346 -
-341,566		 197,957 -1,413,227 46,048,510
Restricted Funds 540,720 1,444 -65,043 - - 477,121
Total Funds 48,146,066 4,442,322 -4,649,530 - -1,413,227 46,525,631

66

Note 13 Funds

13.3 Transfers Between Funds

13.3 Transfers Between Funds
From Fund(Name) To Fund(Name) Reason Amount
General Reserves Expendable Endowment Fund Support 2022 Grant Awards -197,957
Expendable
Endowment
Restricted
Funds
Total Funds
£
£
£
9,253
-
9,253
1,706,443
-
1,706,443
42,533,442
477,121
43,010,563
1,799,372
-
1,799,372
46,048,510
477,121
46,525,631
Tangible Fixed Assets
Intangible Fixed Assets
13.4 Analysis of Net Funds
Total Net Assets
Fixed Asset Investments
Net Current Assets
Expendable
Endowment
£		 Restricted
Funds
£		 Total Funds
£
Intangible Fixed Assets 9,253 -
9,253
Tangible Fixed Assets 1,706,443 - 1,706,443
Fixed Asset Investments 42,533,442 477,121 43,010,563
Net Current Assets 1,799,372 - 1,799,372
Total Net Assets 46,048,510 477,121 46,525,631

Note 14 Commitments and Contingent Liabilities

Since 2014, the Fund makes contributions towards the costs of pensions being paid to these past employees under a by analogy Principle Civil Service Pension Scheme ('PCSPS').

Note 15 Endowed Grants

Historically the Fund has provided grant funding to support the introduction of any new Mess or Junior Rank Welfare Fund facilities. Grant funding has been provided on the basis that the unit has no power to convert the capital provided into income and that the grant funding provided is to be held indefinitely.

All entities granted these permanently endowed grant funds must invest and seek to maintain the grant at a value no less than the original endowed grant monies, subject to market value losses and deflation. Income generated from the invested funds are restricted to support the appropriate charitable activities of the associated Mess or Junior Ranks Welfare Fund.

Endowed grant funds are returned to the Fund only on the extremely rare occurrence of the closure of an RAF unit and its associated Messes and Junior Rank Welfare Funds. Due to the expectation that funds will be retained indefinitely at the units, the Fund considered these to represent contingent assets and hence no value is recognised in the financial statements.

The value of endowed grant funds held at units as at 31 December 2022 is deemed to be £2,165,217 (2021: £2,291,660).

67

Note 16 Transactions with Related Parties

The outstanding related party transactions as at 31 December 2022 amounts to £2,046.71 (2021: £-6,619). The balance owed by the subsidiary as at 31 December 2022 amounts to £2,446.71 (2021: £-1,705.44).

Note 17 Subsidiary Entities

The results of the Fund's wholly owned subsidiary elements are within the Consolidated SOFA as follows:

Income
Trading Income
Total Income
Expenditure
Trading Activities
Total Expenditure
Net Result of Subsidiary		 2022
2021
£
£		 2022
2021
£
£
171,829 263,957
- -
171,829 263,957
156,175 78,702
156,175 78,702
15,654 185,255

RAF Central Fund Trading Ltd Company Number: 8747522

A company set up for the RAF Central Fund to conduct trading in support of its charitable objectives.

During the year the Trading Company was re-charged £33,099 (2021: £29,510).

Directors:

Dr Eamon Molloy Gp Capt (Retd) Mark Williams Mr John Michaelson MR Atul Hindocha Wg Cdr Sarah Brewin Mr Ross Perriam

Note 18 Outstanding Commitments

The Fund had no outstanding commitments as at 31 December 2022 (2021: £Nil).

Note 19 Events after the end of the reporting period

On the 22 April 2023 the charity merged with the RAF Sports Federation.

The RAF Sports Federation is now a 100% owned subsidiary of the charity with the Fund being the Federations' sole member.

68