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
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**RAF CENTRAL FUND** 

**ANNUAL REPORT 2022** 

_II_ 

## **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
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RAF CENTRAL FUND
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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
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RAF CENTRAL FUND
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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
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1144
IROYAL
J aFORCE
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RAF CENTRAL FUND
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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.
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RAF CENTRAL FUND
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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,
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RAF CENTRAL FUND
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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.
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RAF CENTRAL FUND
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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
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RAF CENTRAL FUND
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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.
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RAF CENTRAL FUND
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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
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RAF CENTRAL FUND
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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
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RAF CENTRAL FUND
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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
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**RAF CENTRAL FUND** 

**ANNUAL REPORT 2022** 

_II_ 

## **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: 

- Funding levels being reduced slightly so that more personnel could be supported. 

- An additional pot of funding to be made available if affordable for exceptional once in a lifetime sporting opportunities. 

- Ideas being noted to encourage personnel to be more active. 

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** 


**----- Start of picture text -----**<br>
!�E�E<br>ON2021<br>2 393<br>•<br>INDIVIDUAL SPORTS<br>GRANTS AWARDED<br>**----- End of picture text -----**<br>


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RAF CENTRAL FUND
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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.
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RAF CENTRAL FUND
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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** 

**ANNUAL REPORT 2022** 

_II_ 

## **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** 

**ANNUAL REPORT 2022** 

_II_ 

## **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. 

- £191,000 Total Funds Raised 

- £4,300 Donated by Specialist Sport 

- £180,000 Legacy Donation 

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
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RAF CENTRAL FUND
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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
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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.
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promotion.
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our beneficiaries highlighting
our charity support.
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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

•1

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: 

- There is no relevant audit information of which the Fund's auditors are unaware. 


- The Trustees of the Fund have taken all the steps that they ought to have taken in order to make themselves aware of any relevant audit information and to establish that the Fund's auditors are aware of the information. 

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: 

- give a true and fair view of the state of the group’s and the parent charity’s affairs as at 31 December 2022 and of the group’s income and expenditure for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Companies Act 2006. 

## **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: 

- the information given in the Report of the Trustees which includes the Directors’ Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the Directors’ Report included within the Report of the Trustees has been prepared in accordance with applicable legal requirements. 

## **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: 

- adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of trustees’ remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit. 

## **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: 

- Inquiring of management and, where appropriate, those charged with governance, as to whether the charity is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations; 

- Inspecting correspondence, if any, with relevant licensing or regulatory authorities; 

- Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and 

- Considering the risk of acts by the charity which were contrary to applicable laws and regulations, including fraud. 

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: 

- Making enquiries of the trustees and management on whether they had knowledge of any actual, suspected or alleged fraud; 

- Gaining an understanding of the internal controls established to mitigate risks related to fraud; 

- Discussing amongst the engagement team the risks of fraud; and 

- Addressing the risks of fraud through management override of controls by performing journal entry testing. 

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**<br>2<br>**Donations**<br>**Other Income**<br>3<br>10<br>**Charitable Activities**<br>**Raising Funds**<br>Sports Lottery Operations & Fundraising Trading<br>Trading Activities<br>Investment Management Costs<br>**_Total Expenditure_**<br>**Net loss on investments**<br>**Net Income/(Expenditure)**<br>**Transfers between Funds**<br>**_Net Movement in Funds_**<br>**Total Funds Bought Forward**<br>**Total Funds Carried Forward**<br>**Investment Income**<br>**_Total Income_**<br>**Expenditure**<br>**Income**<br>**Charitable Activities**<br>**Trading Activities**|**Unrestricted**<br>**Fund**<br>**Expendable**<br>**Endowment**<br>**Fund Restricted Fund**<br>**Total 2022**<br>**Total 2021**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**|**Unrestricted**<br>**Fund**<br>**Expendable**<br>**Endowment**<br>**Fund Restricted Fund**<br>**Total 2022**<br>**Total 2021**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**|**Unrestricted**<br>**Fund**<br>**Expendable**<br>**Endowment**<br>**Fund Restricted Fund**<br>**Total 2022**<br>**Total 2021**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**|**Unrestricted**<br>**Fund**<br>**Expendable**<br>**Endowment**<br>**Fund Restricted Fund**<br>**Total 2022**<br>**Total 2021**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**|**Unrestricted**<br>**Fund**<br>**Expendable**<br>**Endowment**<br>**Fund Restricted Fund**<br>**Total 2022**<br>**Total 2021**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**|
|---|---|---|---|---|---|
||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<br>**Fixed Assets:**<br>Intangible Assets<br>8<br>Tangible Assets<br>9<br>Heritage Assets<br>9<br>Investments<br>10<br>**Total Fixed Assets**<br>**Current Assets:**<br>Debtors<br>11<br>Cash at Bank and in Hand<br>Investments<br>10<br>**Total Current Assets**<br>**Creditors:**Amounts Falling due Within One Year<br>**Net Current Assets**<br>**Total Assets less Current Liabilities**<br>**Net Assets**<br>13<br>**Reserves**<br>Expendable Endowment Funds<br>Restricted Funds<br>12<br>**Total Funds**|**Group Total 2022**Group Total 2021<br>**£**<br>£<br>**9,253**<br>21,506<br>**1,659,427**<br>1,733,337<br>**47,016**<br>47,016<br>**43,010,563**<br>45,125,897<br>**44,726,259**<br>46,927,756<br>**549,680**<br>512,125<br>**2,676,184 **<br>2,256,047<br>**-**<br>-<br>**3,225,864**<br>2,768,172<br>1,426,492<br>1,549,862<br>**1,799,372**<br>1,218,310<br>**46,048,510**<br>48,146,066<br>**46,048,510**<br>48,146,066<br>46,048,510<br>47,605,346<br>477,121<br>540,720<br>**46,525,631**<br>48,146,066|**Group Total 2022**Group Total 2021<br>**£**<br>£<br>**9,253**<br>21,506<br>**1,659,427**<br>1,733,337<br>**47,016**<br>47,016<br>**43,010,563**<br>45,125,897<br>**44,726,259**<br>46,927,756<br>**549,680**<br>512,125<br>**2,676,184 **<br>2,256,047<br>**-**<br>-<br>**3,225,864**<br>2,768,172<br>1,426,492<br>1,549,862<br>**1,799,372**<br>1,218,310<br>**46,048,510**<br>48,146,066<br>**46,048,510**<br>48,146,066<br>46,048,510<br>47,605,346<br>477,121<br>540,720<br>**46,525,631**<br>48,146,066|**Charity Total 2022**Charity Total 2021|**Charity Total 2022**Charity Total 2021|
|---|---|---|---|---|
||||**9,253**|21,506|
||||**1,659,427**|<br>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**|<br>2,056,462|
||||**-**|-|
||||**3,136,999**|<br>2,488,752|
||||||
||||1,353,281|<br>1,455,695|
||||||
||||**1,783,718**|1,033,057|
||||||
||||**46,509,977**|47,960,813|
||||||
||||**46,509,977**|47,960,813|
||||||
||||46,032,856|<br>47,420,093|
||||477,121|<br>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**<br>Net cash used in operating activities<br>**Cash flows from Investing Activities:**<br>Dividend Receipts<br>Investment management costs<br>Fixed assset Additions<br>Intangible fixed asset additions<br>Proceeds from Sale of Investments<br>PaymentforPurchaseofInvestments<br>Net cash provided by investing activities<br>Loss/(Gains) on Investments<br>Investment Income<br>Investment Management Fees<br>Depreciation/Amortisation<br>(Increase)/ Decrease in Debtors<br>(Decrease) in Other Creditors<br>Net Cash used in operating activities<br>**Change in Cash & Cash Equivalents**<br>**Cash & Cash Equivalents at 1 January**<br>**Cash & Cash Equivalents as at 31 December**<br>**Notes to the Cash Flow Statement**<br>**Reconciliation of net (Expenditure)/Income to net cash flow**<br>**from operating activities**<br>Net(Expenditure)/Income for the period<br>Adjustment for:|**2022**<br>**£**<br>-673,866<br>735,906<br>-113,195<br>-3,887<br>-<br>7,678,182<br>-7,203,003<br>1,094,003<br>420,137<br>2,256,047<br>**2,676,184**<br>**2022**<br>**£**<br>-1,620,435<br>1,413,227<br>-737,350<br>341,566<br>90,050<br>-37,555<br>-123,369<br>**-673,866**|**2021**<br>**£**<br>-456,181|
|---|---|---|
|||741,234<br>-293,427<br>-29,135<br>-18,505<br>39,989,015<br>-39,284,749|
|||1,104,433|
||||
|||648,252|
|||1,607,795|
|||**2,256,047**|
|||**2021**<br>**£**<br>3,376,469<br>-3,838,484<br>-741,234<br>293,427<br>128,896<br>512,855<br>-188,110|
|||**-456,181**|



## **Analysis of Cash & Cash Equivalents** 

|Cash in hand<br>Total Cash & Cash Equivalents|**31 December**<br>**2021**<br>**Cash flow**<br>**£**<br>**£**<br>2,256,047<br>420,137<br>**2,256,047**<br>**420,137**|**31 December**<br>**2022**<br>**£**<br>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: 

- How the software will generate probable future economic benefits; 

- The availability of adequate resources to complete the development and use the software; 

- The ability to measure reliably the expenditure attributable to the software during its development. 

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: 

- Software development costs 2 years; 

- Intangible assets are not subject to amortisation in the year of recognition, with a full year charged each period thereafter. 

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<br>Buildings|10 years<br>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<br>Investment Management Costs<br>Sports Lottery Operations & Fundraising Trading<br>**Raising Funds**<br> **_Total Expenditure_**<br>**Net gains on investments**<br>**Net (Expenditure)/Income**<br>**Transfers between Funds**<br>**_Net Movement in Funds_Total**<br>**Funds Bought Forward Total**<br>**Funds Carried Forward**<br>**_Total Income_**<br>**Income**<br>**Donations**<br>**Charitable Activities**<br>**Trading Activities**<br>**Investment Income**<br>**Other Income**<br>**Expenditure**<br>**Charitable Activities**|**Unrestricted**<br>**Fund**<br>**Designated**<br>**Fund**<br>**Expendable**<br>**Endowment**<br>**Fund**<br>**Restricted**<br>**Fund**<br>**Total 2021**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**|**Unrestricted**<br>**Fund**<br>**Designated**<br>**Fund**<br>**Expendable**<br>**Endowment**<br>**Fund**<br>**Restricted**<br>**Fund**<br>**Total 2021**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**|**Unrestricted**<br>**Fund**<br>**Designated**<br>**Fund**<br>**Expendable**<br>**Endowment**<br>**Fund**<br>**Restricted**<br>**Fund**<br>**Total 2021**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**|**Unrestricted**<br>**Fund**<br>**Designated**<br>**Fund**<br>**Expendable**<br>**Endowment**<br>**Fund**<br>**Restricted**<br>**Fund**<br>**Total 2021**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**|**Unrestricted**<br>**Fund**<br>**Designated**<br>**Fund**<br>**Expendable**<br>**Endowment**<br>**Fund**<br>**Restricted**<br>**Fund**<br>**Total 2021**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**|
|---|---|---|---|---|---|
||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**<br>2021<br>**£**<br>£<br>**370,952**<br>179,506<br>**-**<br>**370,952**<br>179,506<br>**264,374**<br>98,894<br>**-**<br>**-**<br>**264,374**<br>98,894<br>**2,896,177**<br>2,879,821<br>Other Trading Income<br>**171,029**<br>239,123<br>**3,067,206**<br>3,118,944<br>**737,350**<br>741,234<br>**-**<br>**-**<br>**737,350**<br>741,234<br>**2,440**<br>28,312<br>**-**<br>**-**<br>**2,440**<br>28,312<br>Dividends on Investments<br>Investment Dividend Tax Reclaims<br>**Total**<br>Miscellaneous Receipts<br>**Total**<br>Creditor Write-off<br>Returned Grants<br>Hire of Fund  Welfare Facilities<br>**Total**<br>Lottery Ticket Sales<br>**Total**<br>**Analysis**<br>Donations<br>**Total**<br>Government Grant<br>**-**|**2022**<br>2021<br>**£**<br>£<br>**370,952**<br>179,506<br>**-**<br>**370,952**<br>179,506<br>**264,374**<br>98,894<br>**-**<br>**-**<br>**264,374**<br>98,894<br>**2,896,177**<br>2,879,821<br>Other Trading Income<br>**171,029**<br>239,123<br>**3,067,206**<br>3,118,944<br>**737,350**<br>741,234<br>**-**<br>**-**<br>**737,350**<br>741,234<br>**2,440**<br>28,312<br>**-**<br>**-**<br>**2,440**<br>28,312<br>Dividends on Investments<br>Investment Dividend Tax Reclaims<br>**Total**<br>Miscellaneous Receipts<br>**Total**<br>Creditor Write-off<br>Returned Grants<br>Hire of Fund  Welfare Facilities<br>**Total**<br>Lottery Ticket Sales<br>**Total**<br>**Analysis**<br>Donations<br>**Total**<br>Government Grant<br>**-**|**2022**<br>2021<br>**£**<br>£<br>**370,952**<br>179,506<br>**-**<br>**370,952**<br>179,506<br>**264,374**<br>98,894<br>**-**<br>**-**<br>**264,374**<br>98,894<br>**2,896,177**<br>2,879,821<br>Other Trading Income<br>**171,029**<br>239,123<br>**3,067,206**<br>3,118,944<br>**737,350**<br>741,234<br>**-**<br>**-**<br>**737,350**<br>741,234<br>**2,440**<br>28,312<br>**-**<br>**-**<br>**2,440**<br>28,312<br>Dividends on Investments<br>Investment Dividend Tax Reclaims<br>**Total**<br>Miscellaneous Receipts<br>**Total**<br>Creditor Write-off<br>Returned Grants<br>Hire of Fund  Welfare Facilities<br>**Total**<br>Lottery Ticket Sales<br>**Total**<br>**Analysis**<br>Donations<br>**Total**<br>Government Grant<br>**-**|
|---|---|---|---|
|**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|**-**|<br>**-**|
||**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|**-**|<br>**-**|
||**Total**|**737,350**|741,234|
|||||
|**Other Income**|Miscellaneous Receipts|**2,440**|28,312|
||Creditor Write-off|**-**|<br>**-**|
||**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**<br>2021<br>**£**<br>£<br>**Analysis**|**2022**<br>2021<br>**£**<br>£<br>**Analysis**|**2022**<br>2021<br>**£**<br>£<br>**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|



* See Note 4 for analysis of support costs 

58 



## **Note 4    Support Costs** 

||**Raising Funds**<br>**£**|**Charitable Activity**<br>**£**|**Total Cost**<br>**2022**<br>**£**|Total Cost<br>2021<br>£||
|---|---|---|---|---|---|
|Staff Costs|95,715|<br>390,041|<br>**485,756**|469,978||
|Other Costs|36,857|<br>247,233|<br>**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**<br>**£**|2021<br>£|
|---|---|---|
|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**<br>**£**|2021<br>£|
|---|---|---|
|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**<br>2021<br>**Average**<br>Average<br>**6.2   Average Headcount**|**2022**<br>2021<br>**Average**<br>Average<br>**6.2   Average Headcount**|**2022**<br>2021<br>**Average**<br>Average<br>**6.2   Average Headcount**|
|---|---|---|
|Full-Time|**8.00**|9.60|
|Part-Time|**4.00**|2.30|
|**Total**|<br>**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**<br>**2022**<br>**£**|<br>**Support**<br>**Costs**<br>**2022**<br>**£**|<br> <br>**Total Grants**<br>**2022**<br>**£**|<br>**Total Grants**<br>**2021**<br>**£**|
|---|---|---|---|---|
|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**<br>**2022**<br>**£**|<br>Grant Award<br>2021<br>£|
|---|---|---|
|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|**-**|<br>33,996|
|RAF Honington|**-**|<br>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<br>22<br>Additions<br>Disposals<br>Cost carried forward at 31<br>Dec22<br>Amoritisation bought forward<br>at 1Jan 22<br>Provision for Year<br>Released on disposal<br>Amortisation carried forward at<br>31 Dec 22<br>Net Book Value bought<br>forward at 1 Jan 22<br>Net Book Value carried<br>forward at 31 Dec 22|**Software**<br>**Development**|
|---|---|
||**£**|
||43,387|
||-|
||-|
||**43,387**|
|Net Book Value bought<br>forward at 1 Jan 22|21,506|
|Net Book Value carried<br>forward at 31 Dec 22|**9,253**|



## **Note 9   Tangible Fixed Assets** 

||**Freehold land &**<br>**buildings**<br>**£**|<br>**Computers &**<br>**Information**<br>**Technology**<br>**£**|<br> <br>**Fixtures &**<br>**Fittings**<br>**£**|<br>**Heritage Assets**<br>**£**|**Total**<br>**£**|
|---|---|---|---|---|---|
|Cost bought forward at 1 Jan 22|1,661,484|29,342|236,064|47,016|1,973,906|
|Additions|-|<br>3,887|<br>-|<br>-|<br>3,887|
|Disposals|-|<br>-|<br>-|<br>-|<br>-|
|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|<br>20,898|<br>76,437|<br>-|<br>193,553|
|Provision foryear|49,665|<br>4,488|<br>23,644|<br>-|<br>77,797|
|Released on disposal|-|<br>-|<br>-|<br>-|<br>-|
|Depreciation carried forward at 31 Dec 22|**145,883**|**25,386**|**100,081**|-|<br>**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**<br>**£**|2021<br> <br>£|
|---|---|---|
|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**<br>**31 December**<br>**2022**<br>**£**|<br> <br>Market value<br>31 December<br>2021<br>£|<br> <br>**Income from**<br>**Investments**<br>**2022**<br>**£**|<br> <br>Income from<br>Investments<br>2021<br>£|
|---|---|---|---|---|
|Allianz Portfolio Investments|**-**|<br>-|<br>**-**|<br>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|**-**|<br>-|
|Ardevora|**1,266,300**|1,517,888|**21,245**|-|
|Baillie Gifford|**1,128,292**|1,444,214|**-**|<br>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|**-**|<br>-|
|Knightsbridge|**747,318**|309,330|**-**|<br>-|
|JP Morgan -IIF Uk 1|**5,161,985**|4,750,000|**-**|<br>-|
|IFM|**6,115,831**|-|<br>**-**|<br>-|
|**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**<br>**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**<br>**£**|2021<br>£|
|---|---|---|
|Trade Debtors|**89,172**|<br>109,318|
|Prepayments and Accrued Income|**460,508**|402,807|
|**Total**|**549,680**|<br>512,125|



## **Charity** 

|**Analysis of Debtors**|**2022**<br>**£**|2021<br>£|
|---|---|---|
|Trade Debtors|**47,447**|<br>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**<br>**£**|2021<br>£|
|---|---|---|
|Committee Grant Creditors|**-**|<br>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**<br>**£**|2021<br>£|
|---|---|---|
|Committee Grant Creditors|**-**|<br>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<br>Endowment|Expendable Endowment for RAF Central Fund - Unrestricted.|
|Restricted Funds|Restricted|Monies transferred into the RAF Central Fund upon close of the Mechanics Endowment<br>Fund.  Restricted for the benefit of RAF trainees, especially those in the engineering<br>disciplines.|



## **Note 13.2 Funds** 

## **13.2  Movements of Major Funds** 

|**Fund Names**|**Fund balances**<br>**bought forward**<br>**£**|**Income**<br>**£**|**Expenditure**<br>**£**|**Transfers**<br>**£**|**Gains and losses**<br>**£**|**Fund balances**<br>**carried forward**<br>**£**|
|---|---|---|---|---|---|---|
|General Reserves|-|4,440,878|-4,242,921|-197,957|-|**-**|
|Expendable Endowment<br>Fund|47,605,346|-|<br>-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**<br>**Endowment**<br>**Restricted**<br>**Funds**<br>**Total Funds**<br>**£**<br>**£**<br>**£**<br>9,253<br>-<br>**9,253**<br>1,706,443<br>-<br>**1,706,443**<br>42,533,442<br>477,121<br>**43,010,563**<br>1,799,372<br>-<br>**1,799,372**<br>**46,048,510**<br>**477,121**<br>**46,525,631**<br>Tangible Fixed Assets<br>Intangible Fixed Assets<br>**13.4  Analysis of Net Funds**<br>**Total Net Assets**<br>Fixed Asset Investments<br>Net Current Assets||||||
|||**Expendable**<br>**Endowment**<br>**£**|**Restricted**<br>**Funds**<br>**£**|**Total Funds**<br>**£**||
|Intangible Fixed Assets||9,253|-|<br>**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**<br>**Trading Income**<br>**_Total Income_**<br>**Expenditure**<br>**Trading Activities**<br>**_Total Expenditure_**<br>**Net Result of Subsidiary**|**2022**<br>**2021**<br>**£**<br>**£**|**2022**<br>**2021**<br>**£**<br>**£**|
|---|---|---|
||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