CENTRAL FUND ROYAL AIR FORCE CENTRAL FUND ANNUAL REPORT RegsteredCcThpany Nun*er". 8555984 Charity Registered in EroL3TrJ andWa￿.. 1152560 Charity Registered in kotland.. SC044299 CONTENTS REFERENCE AND ADMINISTRATIVE DETAILS A MESSAGE FROM THE CHAIR AMESSAGE FROM THECEO 10 THE TRUSTEES, REPORT 14 PROPERTIES 17 PROGRESSAGAINSTSTRATEGIC OBJECTIVES 29 PLANS FOR FUTURE PERIODS 34 LEGAL STATUSAND ORGANISATION 37 MANAGEMENT AND COMMIThEES 41 RISK MANAGEMENT 43 REVIEW AND FINANCIAL RESERVES 46 TRUSTEES, RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS 53 CONSOLIDATED STATEMENTOF FINANCIALACTIVITIES FOR THE YEAR NL)ED 31 D&LEML4&R 2023 54 CONJOLIDATED tIALANCE JI IECT AJof 31 DECEMOCR 2023 55 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THEYEAR ENDED 31 DECEMBER 2023 56 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 RAF CENTRAL FUND ANNUAL REPORT 2023 REFERENCE AND ADMINISTRATIVE DETAILS TRUSTEES Dr E Molloy Mr J C Michaels Mrs A Farmery Group Captain M Williams Group Captain C Baker Dame S Gray Mr J 8rown Mr O-L Veronese Warrant OfficerJ Crossley Chair Appo+nted 4 March 2024 Appointcd 6 May 2024 Appointed 12 July 2024 Re$l￿e￿ 24 April 2024 FINANCE AND RISK COMMITTEE MEMBERS Air Commodore A Portlock Group Captain M Williams Wing Commander K Tinkler Group Captain S Brewin Mr B Cartledge Mr M Rana Mr D Weoire Chair Trustee Member Resigned 15 March 2024 Appointed 3 June 2024 Appointed 3 June 2024 GRANTS COMMITTEE MEMBERS Warrant Officer E Kerskke Squadron Leader G MacKay Group Captain D Murty Squadron Leader R McPhee Warrant Ufficer A Thomas Warrant Officer G Evans Master Aircrev¥ J atone Warrant Officer S Catterall Warrant fJFfir*r r c(xper Warrant Officer J Alpert Warrant Officer S Subramanium Squadron Leader F Farthing Mr M Nurse Squadron Leader F Maybury Squadron Leader N Byrne Warrant Off￿cer J Crosstey Squadron Leader S Hyndman Worront OFFicer M Dalziel Mr O-L Veronese Chair Appointed 10 Febfuary 2023 Apwint@d 10 Fobruary 20231Th)voting rtghtgl Resigned 10 February 2023 Appointed 9 jur￿ 2023 Resigned g June 2023 Resigned 9 June 2023 Resigned 5 October 2023 AptK)inted 5 October 2023 Resgned 24 Apnl 2024 AprK)inted 25 March 2024 Appointed S June 2024 Trustee Mernber- Appointed 12 July 2024 raftf.org.uk RAF CENTRAL FUND ANNUAL REPORT 2023 REMUNERATION COMMITTEE MEMBERS Mrs A Farmery Group Captain M Williams Group Captain C Baker Warrant Officer J Crossley Chair & Trustee Member Trustee Member Trustee Member- Appointed 18 July 2023 Trustee Member- Resigned 24 April 2024 INVESTMENT COMMITTEE MEMBERS MrJ C Michaelson Group Captain M Williams Mrs S Bridgeland Mr J Brown Chair & Trustee Member Trustee Member Trustee Member PRINCIPAL OFFICERS OF THE CHARITY Mrs N Graske Mi R P￿1[1dlY1 Company Secretary CliigfExgLuLivg orric REGISTERED ADDRESS PRINCIPAL OFFICE Hui IiLdl i¥ BluLk Hgdd4u¢di Leis Air Command RAF High Wyconibe Buckinghamshire HP14 4UE RAF CeiiLidl Fui Id Ddiiesfieki New Lock Lane Hvriley Road Medmenham Buckinglianishire SL7 2EY -f.Ofg_uk RAF CENTRAL FUND ANNUAL REPORT 2023 PROFESSIONAL ADVISORS Lane Clark & Peacock LLP 95 Wigmore Street London Broadstone Corporate Benefits Ltd 22 1 West George Street Glasgow G2 2ND Widett Ltd Forbury Works 37-43 Blagrave Street Reading RGI IPZ WIU IDQ INVESTMENT MANAGER5 TrÈll9ga PLC Savills In¥e5tment MJna9em¢ntUK Ltd Inslght Inv•stm•nt Manag•m•ntlGloball Ltd Marathon A55et Mana9emÈnt LLP Knightsbridge Advisers LLC JP Moryan Ltd CCLAFUWKI M•nogers Ltd BNY M•llon Alt•m•tlv• 5nv•stm•nt S•p4lc•s Ltd IFM IrbV¢Stors 8all11•G￿r0rd &Ca Napl•r Park Global P•ntheon VentureslUK) LLP Bl•ckstone Blackr¢xk REGISTERED AUDITORS Richard Place Dobson Services Ltd Ground Floor, 1-7 Station Road Crawley West Sussex RHIO IHT LEGAL ADVISORS Charles Russell Speechlys LLP 5 Flcct Placc London EC4M 7RD Russell-C¢)oke LLP ? Putney Hill London SWIS 6AB Stone King LLP Boundary HQUJC 9 1 Charterhouse Street London ECIM6HR BANKERS Barclays Bank d WAtp.rqidp WAY The Lakes Bp_rjfnrd Rnad Royal Bank of Scotland Hnlt% MilitAry Ranking 200 Fowler Avenue Fnwlg.r RiJ£inp.££ PArk Northampton NN4 7XD Farnborough Hamrth4hirp. GU14 7JP raftf.org.uk 4IpFOR RAF CENTRAL FUND ANNUAL REPORT 2023 A MESSAGE FROM THE CHAIR In last year's annual report. I highlighted ongoing efforts to enhance the strategic model of RAF Sport. I'm pleased to report that within the span of 12 months. not only has a more effective model been identified. but also phase of￿ of its implementation has been successfulty completed. Ori Jdlluoly 1. 2024. Llie RAF sp￿ Ls F*xJerdLiuii dr￿ 35 RAF Sports Association charities merged into the RAF Central Fund a remarkable achievement. CredlL15 due to the RAF Sports Fe(Jerdtlon. DRS. AssoLl¢iUon Trustee5, ¢Jrid RAF Ceritrdl Furiol teams for accomplishing this feat within such a short timeframe. Their dedication is evident. especially considering the mergers were completed on schedule, within budget, and amidst record levels of funding awarded by the Central Fund to personnel in 2023, underscoring the team's commitment to the transformative power of sports on operational effectiveness. The refined model not only mitigate5 Stjorts As50Clation Trustee liabilty and reduces cost5 across merged entities. but also alleviates administratwe burdens. Moreover. it has already begun to yield tangible results in the form of increased sponsorship funding for RAF Swrt. With thi5 new framework in place. RAF personnel can now devote more energy to developing and delivering their respective sports without being encumbered by excessive administrative tasks. The second phase of our endeavour commenced just before the conclusion of phase one and is centred on identifyirKJ optimal solutions for the remaining 15 unmerged Associations. We will continLJe to work through this phase. thereby paving the way for RAF Sport to be more accessible. sustainable, arK1 successfLJI than ever before. As we progress toward thls miie5tone. l extend my best wlshes to every team arKJ Indlvldual embarking on physical activities. Your dedication is integral to our collective success. Dr Eamonn Molloy Clidii, RAF CeriLrdl Fu{￿j raftf.org.uk RAF CENTRAL FUND ANNUAL REPORT 2023 A MESSAGE FROM THE CEO The RAF Central Fund experienced an exceptionally dynamic year In 2023. Demand for support surged by 16% In one of our funding streams. while assistance to stations and sports associations continued to expand. This resulted in significantly more RAF personnel receiwng support for their chosen sports or physical activities. Notable funding initiatives included the establishment of a new 'llatt Bike Studio ot RAF Wittering, the provision of new flooring for RAF Lossiemouth s boxing club. and theècquisition of 12 new go-karts for RAF Marham. In addition to fundraising and grant administration. the Fund team dedicated significant efforts to implementing thenew construct for RAF Sport While phase one was delivered on schedule and within budget. the magnitude of embracing 36 entities into one cannot be overstated. Each merrber of the team contributed to this achievement. which would not have been possible without the support of our partners and the Associations themselves, The collaborative er)deavour has already yielded diwderKls. wth the anticipated benefits of the new framework expecteci lo endure for years locome. To optimise the new construct. we enlisted the services of commercial partner Pete Goldsmith. He engaged with multiple Sports Associalions to understand Lheir ch811enges and value propositions to potential sponsors. As a result. a six-figure sum of new and augmented sponsorship Income has been generated thus far. We are committed to continuing this Partnership with the aim of generating additional commercial Income for RAF Sport. Both the funding Initiatives and the new sport construct are ultimately geared tOW8rd the same objective.. empowering RAF personnel to excel In their chosen activities. In 2023. our efforts translated into over 1.500 fixtures and events delivered by 54 Sports Associations. 51 overseas visits conducteij. participation of 4 serwng and 13 veteran RAF personnel In the Invictus Games. and 38 athletes from 16 drferent disciplines competing at GB or similar level events-an impressive feat considering our population Is comparable to that of thetown of Windsor. As we embark on another eventful year of grant funding. finalising the new construct and supporting you. l extend my best wishes to all for a healthy and successful year of sport ahead. Mr R Perriam Chief Executive Officer. RAF Central Fund "ladmit t￿tI d&*)'treoltyappreciotehwrnuch the CentralFunddo for until few ye*s into my %port. The Furtd provide% Statit)n clubs graF>ts for e4￿￿￿ent RAF FenciThJ Obtai￿ th￿r ewHpment thr￿ amtsal support to the Sports As5¢￿tIc￿5. and I have a150 i￿n able to purchase kit thJnks to the SqrtL¢*Dom W•kn. RAFFw>¢Kbg WITHOUT THIS PUNDING OUR CLUB. UKE MANY QThERS ACROSS THE AIR FOR￿ WOULD NOT BE AS SUCCESSFUL AS IT IS AND THE TEAM WOULD STrUGGLE TO COMPEfE IN CHAMPIONSHIPS "Tlre Centro1Furtlhsbeen•game.ch￿. Thesrcontirwou5 made expenses of cornpetifVJ￿EUffOpeondIVCfoss the uKw￿￿IhJvebeenas￿￿rfKJnt ch￿•49•." SqnLdrStm￿Ajrnc*)d.S￿tSrnanOffthe YeariWaterPokJl SPORT IN THE RAF IS MASSIVELY SUPPORTED BY THE RAF CENTRAL FUND. SO ThE CHARITY HAS BEEN CLOSE TO MY HEART EVER SINCE JOINING. THE CSNTRAL FUND OPSNS spoiyr AND PHYSICAL ACTMTY TO KVSRYONS OF ALL ABIUTIES FROM INDMDUALS TAKING UP A SPORT FOR THE FIRST TIME ALL THE WAY TO ELrrE ATHLrrES WITHoiif THE SUPPORT OF THE CENTRAL FUND, A LOT OF WHAT WE HAVE AVAIL4BLE WOULD CEASE TO EX15T. heRAFCentr*FundgrantprogrammestKJt￿￿$UppQrtrne, ￿alsoMyfel1oW strLKtorsandstL&lentsoli*e. Thro￿l9rants newrnember engogement. the O￿T￿hC1￿l5Edgar. RAFIW￿terS￿rtslS￿Qwti( ra¥tf.OTg.uk RAF CENTRAL FUND ANNUAL REPORT 2023 THE TRUSTEES. REPORT YEAR ENDED 31 DECEMBER 2023 The Trustees. who aTe 31so directors of the Royal Air Force Cenlral Fund for the purposes of company law, present their report and audited financial statements for the year ended 31 December 2023. The con5d￿ated financial statements have been prepared in éccordance with the provisions of the Statement of Recommended Practice 'Accounting & Reporting by Charities" IFRS 1021 and in line wth current statutory requirements, the Charity's Constitution and applicable Accountiro Standards In the United Kingdom. The consdidaled accounts include the RAF Central fund and ils subsNJiaries. CHARITABLE OBJECT AND ACTIVITIES FOR THE PUBLIC BENEFIT The Nemorandum and Articles ofAss¢Xiation defines the FuThJ's object as a chèrity that is,, I, To benefrt generalty members or fomier members of the Royal Air Force and their dependents in such charitsble ways as the Trustees think fit 2. To promote the efficiency of His Majesty's Armed Forces in such charitable ways as the Trustees think fit particularly (iwt not by way of limitationj through encouraging andfacilitating the playing ol, andparticipation in, and the provision of or assisting in the wovision of facilities for, sport in the Royal Air Force with particularreference to." Increasingphysical fitness,. Fostering the esprit de corps,. and Raisingmorale Ofthemembers of the RoyalAirForce. This object presents the Trustees wth wide powers. enabling them to provide charitable assistance to the RAF Community. primarily via charIta￿e grants. The core vision of the Fund. to provide support to those serving In the RAF tcxlay ènd on an enduring basis. continues to underpin the ethos and actwities of the Chèrity. From the Fund's origins back In 19 19. 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 ar￿ react quIc￿Y to their evolving rneeds through amenities and sports prokrisions rafcf org uk RAF CENTRAL FUND ANNUAL REPORT 2023 VISION For all serving personnel to develop their full poteiitial through sport and physical actrvity. MISSION To enable all serving RAF personnel to acce55 Sporting opportunities and physical activities. STRATEGIC OBJECTIVES Broaden its understanding of how the challenges of service life affect the RAF community with regards to health and fitness. Develop afNJ deliver accessible support programmes that reach those most in need. Manage the charity as effectively and efficiently as possible. Grow and sustain the resources required to meet the needs of the charity's beneficiaries. Significantty ir￿reaSe awareness of its work within the RAF community. fafcf.org.uk | li RAF CENTRAL FUND ANNUAL REPORT 2023 PUBLIC BENEFIT The Trustees recognise the two principles of public benefit and believe that the objectives and actmties of the Fund formally meetthese principles. For all serving ￿r$I)nnel to dov•lt)p th•ir full potential through sportandphyskalactivity. Workinq towards this vision assists in the promotion of military efficiency which underpins esprit de corps and team working. whilst additionally encouraoinq personnel to develop their character. spirit attitude to face challeThJes and danger associated with military service. As a result. the Fund provrdes a benefit not onty to f(5 dire beneficiary group but additionally to the general public In helping to provide perst)nnel who are mob'vated. 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 comFAied with the duty in section I l of the Lharities Act 201 i to have due f￿ard to the Charity Cornmission's general guidance on public benefit. fafrf.org.uk 112 (ry**llll RAF CENTRAL FUND ANNUAL REPORT 2023 PROPERTIES The Fund continues to enhance and support the lifestyle of serving RAF personnel by providing a range of sport centres and recreatlonal accommodaiion. Numerous sports and physlcal activities can be accessed through the use of our sites including water-based sports. racket sports and mountaln sporrs. FESHIEBRIDGE LODGES This recreational accommodab'on located near Aviemore in the Cairngorms National Park is prioritised for serving RAF personnel for holidays, outward bound courses, decompression ar)d access to the abundance of sports and physical activities on the doorstep of the lodges. With a range of properties to suit small and large parties. the site sees over 1000 guests visit parh ypar -QXCELLeNT COMPORTABLI wELL￿oU1ppCD LODOE IN DeuoHTPUL WOODED SURROUNDING& WE THOROUGHLY ENJOYED OUR STAY AND WILL RECOMMEND THE PROPERTIE&- CLEAN AND HAD EVERYTHING WE NEEDED. ThE LOCATION IS GREAT WITH SO AWAY. THE NEARBY RIVER IS PERFECT IF YOU FANCY A COLD DIP AND THERES LOT5 OF LOCH5 NEARBY OF VARIOUS SI￿ W¢)ULD DEFINITELY RECOMMEND AND WOULD STAY AGAIN FOR SURL rafcf.org.uk 114 RAF CENTRAL FUND ANNUAL REPORT 2023 HALTON TENNIS CENTRE Halton Tennis Centre is owned by the Fund and leased to the RAF Tennis Association to provide RAF personnel with access to tennis try outs. training and fixtures. The Centre includes a wealth of facilities for all abilities including indoor courts, a fitness centre and clubhouse amenities. DANESFIELD Hundreds of RAF personnel take part in Robson Academy of Resilience training at RAF Central Fund Danesfield each year with attendees taking part in adventurous development activities and experlences. The site also provides person￿1 with access to grassroots and competitive water-based sports as it is the Home for Sport for the RAF Rowing Club and the RAF Canoeing Association, offering try outs. training. club sessions and event5. VINE LANE This site is used to host a number of RAF Cricket fixtures in sprirMJ and summer." the Fund is continuing to review possible opportunities to better utilise the site for the benefit of its beneficiories. whilst taking into considerotion the requirements of RAF Sport. The potential financial. reputational and environmental impacta of a change of use are being considered as part of this review. rafcf.Org.uk 115 O ROYAL AIRF)RCE RAF CENTRAL FUND ANNUAL REPORT 2023 PROGRESS AGAINST STRATEGIC OBJECTIVES STRATEGIC OBJECTIVE I: BROADEN ITS UNDERSTANDING OF HOW THE CHALLENGES OF SERVICE LIFE AFFECT THE RAF COMMUNITY WITH REGARDS TO HEALTH AND FITNESS. In 2023. the FurK1 dedicated significant efforts to deepen its understanding of the needs and obstacle5 faced by the Royal Air Force community conceming sports and physical activity. One of the key endeavours invofved arranging a meeting with the Minister for Defence. Pe¢¥)￿. Veterans. and Serwce Families. The aim Wa5 to provide the Minister with updates on the experiences of serving personnel regarding access to sports and underscore the vital role of sports and physical actwity in maintaining operational capability. The Minister engaged in constructive conversation regarding the physical and mental wellbeing benefits of sporting activity in the development of serving personnel. Another vital aspect of the Fund's activities was Its particlpatlon In biannual RAF charities meetings. These gatherings. hosted by the RAF'S Deputy Commander of Capatj'lity. provided valuable insights into the broader challenges and requirements ofthe RAF community. Through errfjagement with various stskeholders. including rcpreJentatiVeJ from RAF charitlco. the Fund gained a dceper understanding of the collective challerKJes faced by beneficiaries. By continuing our membership of the RAF Sports Bowd. the Fund has actively participated in biannual meetings alongside various stakeholders. These meetings served as platforms for discussing challenges encountered by RAF sports personnel and fostering collaboration to overcome barriers to access and enhance support for them. The Fund also operates a grants committee. which convened three times in 2023 to review funding bids. Comprising a diverse mix of serving pefsonnel. the COmm￿lee ensured that decision5 on funding Ilocabons at RAF stations were inf0rr￿d by the IDied experiences of ttK)se directly invo￿ed. iafcf.erg.uk 117 RAF CENTRAL FUND ANNUAL REPORT 2023 Through the assessment of approximate￿ 3.000 funding bids received annually. the Fund gained Insights into the multifaceted challenges faced by the RAF community concerning sports and physical actiwty. These challenges ranged from financial constraints and ge￿raphiCal limiiations lo issues rdated to the prolqsion of facilities and time restrictions. Furthermore. the Fund explored the use of software aimed at Improffing insight ènd understanding of the challenges faced by the RAF community. By leveraging technology. the Fund sought to refine Its grasp on these challenges and develop effective strategies to address them. Overall, these initiatives underscored the Fund's commitment to understanding and ddressing the needs of the RAF community in relation to sports and physical activity. Through collaboration with various stakeholders and leveraging insights gained from diverse sources. the Fund aimed to enhance the well-being aThY operational readiness of RAF personnel. ATTENDANCE TO SUPPORT THE RAF COMMUNITY IN 2023 ooooo BRIEFINGS &VIRTUAL MEETINGS SPORT ASSOCIATION MEETINGSIEVENTS STATION £3 ENGAGEMENT DAYS HEALTH& WELLBEING DAYS RAF AIRSHOW r3fcf org uk | 18 RAF CENTRAL FUND ANNUAL REPORT 2023 STRATEGIC OBJECTIVE 2: DEVELOP AND DELIVER ACCESSIBLE SUPPORT PROGRAMMES THAT REACH THOSE MOST IN NEED. I he central Fund principally seeks to meet its objectives througty the provision ot support as a grant giving charity. The Grants programme is divided into three furKling streams.. RAF SPORT ASSOCIATION GRANTS Support funding for Sport Associations continued to be a key pillar in delivery of the Fund's vision and mission. it fulfils the charitable obj'ectwes of the Fund by. Increasing the number of serving personnel participabrKJ in sport and physical activitles. II ILI iy LI I¥ yivvi5iuI Tr vf¥yur I dfiLJ yliysiLdl dLtiviLy vvvur lur iiLivs. Providing an opportunity for serving RAF personnel to decompress from operational dgii Idl ILis. Providing an increased sense of inclusiv¢ty within the RAF serving community. 2023 marked the second year of the latest 3-year Joint Planning Process IJPPI funding cycle between the key stakeholders of RAF Sport (the Fund. RAF Sports Federation and the Directorate of RAF Sportl. This support enabled participation and assisted development pathways for serving personnel in given sports. from grassroots through to elite level competition. it also played a key role in driving accessibility through the purchase and hire of kit. equipment and facilities. As part of the continued strategy for a more aligned approach to the delivery of RAF Sport, foundation work was undertaken across 2023 to prepare for a merger of the RAF Sport5 Federation and the majority of Sports Associations into the RAF Central Fund from l January 2024. VALUED CONTRIBUTIONS BY THE FUND TOWARD THE OPERATING COSTS OF 50 SPORT5 ASSOCIATIONS: 50 £1.221,920 tiitt 10.396 VALUE OF ASSOCIATION FUNDING PERSONNEL SUPPORTED RAF SPORTS ASSOCIATIONS FUNDED In addition restricted contributions were made to some of the Sports Associations by the RAF Sports Federation amounting to EIOI.455. rafcf org.uk 119 RAF CENTRAL FUND ANNUAL REPORT 2023 ENRICHMENT GRANT PROGRAMME This partiCLJlar programme has gone from strength to strength. seeing a continued increase in the number of grants awarded to RAF Stations and Units to SUPF)Ort cieation and development of faciltties for sport and physical activity. With grants of up to E50k available, projects ranged from significant installations of new and supporting equipment. such as an Auto-Belay system to enhance the climbing facility at RAF Lossiemouth, to smaller awards for pooled kit and equipment that made complex sports such as Archery. Fencing and Sub Aqua. more accessible to entry level participation. These along with many other fantastic projects. spanning a wiae variety of sportng Interests. enabled a record number of serving personnel to enha￿e their personal wellbeing through engaging In physical activity. .,51 VALUEOF ENRICHMENTGRANTS ENRICHMENT GRANTS £358.149 24 RAF STATIONS SUPPORTED ttTirttt 60 f 22.803 RAFC£NTRALFUND STATION AMBASSADORS PERSONNEL SUPPORTED The above enrichment grant value includes an amount of £115.920 which was excess income received in prior years. CENTRAL FUND rafcf.Oro.u 120 RAF CENTRAL FUND ANNUAL REPORT 2023 INDIVIDUAL SPORTS GRANTS We continued to see a sustained increase in demand. with a 15% uplift on the number of awards, resulting in more than £IOO.(X)O in addits.onal funding over and above what was budqeted for. Further to a previous review wtr*re various extemal solutions were considered but not sanctioned for a more automated approach to funding. 2023 saw an internal proce55 review and subsequent adjusted approach to enhance assurance and auditing of individual grants. resulting in.. Improved beneficiary experience. Enhanced governance and assurance. with ICQ% effectweness in highlighting beneficiaries with outstanding proot ot purchase. Enabling a more effective avdit process. and subsequent recovery and exclusion process lor beneticiaries that tail to meet minimum requirements. Spéiicilist Spor'ts continued to facilitate discounte%J purchases for cvstoniers i efer'reQ tlir'vugh our individual programme. To address the near-term budgetary challenges created by the sustained increase in demand. a review was conducted. considerirKJ vafiOUS m￿le1S. resulting in a recalibration of funding levels in readI￿sS for 2024, thereby maintaining ow core value of responsible management of our resources for future beneficiaries. 2.766 TOTALVALUEOFFUNDING AWARDED IINCLVDINGGROUPGRANTSANO SKI CHAMPSI NUMBER OFGRANTS AWARDED £698.603 t 988 VALUE OF RAF LVrfEL 1.778 VALUE OF DEVELOPMENT RAF LEVEL GRANTS GRANTS DEVELOPMENT LEVELGRANT5 LEVELGRANTS É340.085 £283.760 rafcf.org.uk 121 RAF CENTRAL FUND ANNUAL REPORT 2023 MECHANICS ENDOWMENT FUND (MEF) The MEF 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 within engineering disciplines where possible. A flagship project in 2023 supported the installation of an exercise rig and static bike5 in the Finlay Gym at RAF Halton. enabling new fecruits to develop. It's expected that these facilities will reach over lo.0￿ recruits over the next 5-year pericd. £47.598 VALUE OF M£F GRANTS MEF GRANTS AWARDED 1111++11112.400 tttttttttt PERSONNEL SUPPORTED THROUGH MEFGRANTS ILJll•YEW:TJ. IENfAiiL raftf.Ofg.Jk 122 RAF CENTRAL FUND ANNUAL REPORT 2023 STRATEGIC OBJECTIVE MANAGE THE CHARITY AS EFFECTIVELY AND EFFICIENTLY AS POSSIBLE. In 2023. the Central Fund embarked on a transformative joumey. marked by significant milestones that fortified its commitment to various key areas. The most notable of which was the successful merger between the RAF Sports Federation and the Central Fund. Supported by rhe Dlrectoraie of RAF Sport. rhls strareglc consolldarion srreamllne(Y administrative processes. enabling Sports AsSOClations to focus on elevating RAF Sport for all servlng personnel. The merger not only brlngs efflclency t*ut also relnforces the Fund's role In nurturing sports activities within the RAF Sport enwronment. Alongside the merger. the Central Fund expanded its ststion ambassador scheme. which was rucCC￿ fully launchcd in 2022. Thi" cxpanrJion aimcd to cultivatc rtrongcr tICJ Wlth kcy advocates on the ground. thereby amplifying the Fund's visibility and broadening its impact. By fortcring rclationr hipJV Wlth iTrJiMdual. r mir￿P￿10n. thc Ccntr31 Fund strengthened its support network. paving the way for increased engagement and collaboration within the RAF community. Another area of focLJS for 2023 was the enhancement of RAF Sports Lottery processes. Recognising the importance of responsible garn￿1ng practices. the Fund revamped its lottery procedures to ensure strict adherence to Socially Responsible Advertising standards and Gambling Commission regulations. These measures aimed to promote ethical gambling practices while generab'ro revenue to support the Fund's initiatives for the benefit of RAF personnel. In alignment with evoknng regulatory frameworks, GDPR compliance and transparent governance was prioritised in 2023. RobJst measures were implemented to safeguard data protection and privacy rights. reinforcing the Fund's commitment to accountability and integrity. By fostering a culture of transparency and adherence to regulatory standard5. the Central Fund upheld the trust and confidence of its stakeholders while navigating the complexities of data management in the digital age. Furthermore, sustainability continued as a core focus area for the Central Fund, reflecting its commitment to environmental stewardship corporate social responsibility. Intensified efforts were directed towards reducing the FurKY's carbon footprint through targeted initiatives within the workplace. with a clear aim of achieving measurable outcomes in line with United Nations sustainability goals. rafrf.org.uk 123 RAF CENTRAL FUND ANNUAL REPORT 2023 STRATEGIC OBJECTIVE GROW AND SUSTAIN THE RESOURCES REQUIRED TO MEET THE NEEDS OF THE CHARITY'S BENEFICIARIES. THE RAF SPORTS LOTTERY In 2023. the number of players remained consistent with income for the year reaching over £2.9 million which exceeded budget. The Lottery awards prizes totslling E18.CMXJ each week and there were over 1.040 winners in 2023. The cost of awardinq these prizes. tr)gether with External Lottery Manager Fees and overhead costs totalled £1.243.51612022'. £1.201.1371 for the twelve months of play. Following improvements made to the RAF Sport briefing to Recruit Training Squadron personnel in 2023. we saw a rise in average sign-up rates for the Sports Lottery, an increase from 50Vo to 54%. [NTRAL FUNJ rafcf.Org.uk 124 RAF CENTRAL FUND ANNUAL REPORT 2023 INVESTMENTS The Investment Strategy seeks to Protect and grow in real terms the value of the investment portfollo whllsr also ensurlng the Income dlstrlbutlons recelved In the year meet the Fund's expected annual expenditure. The objectives are as follows.. Prowde stable cash distributions Avoid matprial lo£ses Grow the Fund's Portfolio Support135 prudentl the Fund's Environmental. Social and Governance IESGI goals In 2023, we reached the end of Phase 2 of the strategy which involved mandates in cash income producing assets with higher returns and lower duration risk. Phase 3 2024-2025 will not see a change in strategy but a recleployment of assets to tske advantage of the changed enwronment and continue to build a base of talented core asset managers. DONATIONS To Supplement income generated by the RAF Sport5 Lottery, our wider fiJndrai5ing effortJ broadly maintained ouryear-on-year posfcion. Total Ljnrestricted funds of over £180.W) were raised. made up of genefOUS donations by varinijs Partnp.rs. frnm RAF fitHtinn£ thrniigh tn individiiHI initiHtivp.4 hy 4p.rving pp.r5nnnp.I Working with partner suppliers of SFxJrts equipment and clothing continued. resulting in another donation of E.5.500 from Specialist Sports. Total restricted funds from charitable third-party furKlers amounted to El 13,902. During 2023. the Fund embarked on a wider journey to scope commercial opportunities with a view to strategically enhance, develop. and introduce future partnerships. The Fund continues to review and ijevelop Its processes across all Oepartments to ensure that beneficiaries receive effectwe efficient service and support. Improvements in various processes In 2023, Including data management ar￿ grants processing, Increased outputs and reduced staff requirements. raftf.org.uk 125 RAF CENTRAL FUND ANNUAL REPORT 2023 STRATEGIC OBJECTIVE SIGNIFICANTLY INCREASE AWARENESS OF ITS WORK WITHIN THE RAF COMMUNITY. Throughout 2023. the Fund's Communications and Marketing Department retained its focus on promoting the Charity through an array of awareness raising activities which showcased its fundraising programmes and highlighted opportunities related to the Sports Lottery. so that more serving RAF personnel could benefit from the charitable income generated. PRESENTATIONS We continue to promote the work of the Central FurKI at a number of presentations and events across the year. On top of regular visits to health & wellbeing days. conferences and port association events. we have also added a briefing slot at the Defence Academy to our programme of prgsontations. We successfLJlly re-enqaqed with the Trg Specialisation Conference and were provided with a speaking slot to enhance the visibility of our work and to encourage increased interaction with the Fund by those who are actively deliverir¥J and participating in physical activity. COMMUNICATIONS PLATFORMS It was an important year for the Central Fund as we prepared for the merger with the Sports Federation. and an emphasis was placed on connecting with RAF News and intemal Air Media to ensure that the messaqing to suoport this transition was shared widely and to the riqht audience. This led to an interview piece at the end of the year which included quotes from Air Cdre Richard Fogden, Director of RAF Sport and Central Fund CEO. Ross Perriam. As readjustments post COVID- 19 continue, we have also taken the opportunity to explore the re-establishment of RAF Actwe and providing the RAF community with a focused piece of communications to highlight the excellent activities. projects and individuals helping to enhance RAF Sport as an essential pillar in the serwce. The Central Fund's social media preSer￿e continued to grow in 2023 wth the charity's main channel. Facebook. seeing a reach of 47.(K)O and an increase of 115% in page visits. Instagram also Wltnessed an increase in page visits of 18¥0. Wlth a reach totalling 4.000. Heightened ctivity on both channels was seen as a result of posts celebrab.ng the RAF Sport Awards and National Fitness Day. Botli the Cents"al Fund web51te and monthly newsletter contiiiue to see good engagenient rates with page views maintaining a 16% increase when compared to our previous website and ali aver6ge open l.ate of 2096 for our newslettei". with eacli editioii being l.ead by appi"oAiniately 3.000 recipients. raftf.org.uk | 26 RAF CENTRAL FUND ANNUAL REPORT 2023 RAF SPORTS AWARDS The annual awards were hosted at Halton House in 2023. and for the second year running the Central Fund w35 delighted to sponsor the Jtation of the Year Award. The winner5 were RAF Akrotiri. who were acknowledged for setting up an enormously successful Park Run in Cyprus. In totsl. the ceremony recognise(122 nominees in eight categories from 15 different sporting disciplines. including three lifetime achievement awards. fafcf.org.uk 127 RAF CENTRAL FUND ANNUAL REPORT 2023 WORK TOWARDS BECOMING A NET ZERO ORGANISATION In 2023 the Fund continued on its ESG journey and published and circulated its ESG Policy to key stakeholders. the policy sets out the Goals. aims and objectives towards its Net Zero tsrget. Some of the stepswe look In 2023 were: Wc ran a ESG 4upplicr 4urvcy and an ESG Staff aurvcy to C4tabli- a good base of understanding of where we stood. to enable us to takc action. Improvements to ESG credentials. as well as service. were established with some suppliers. we continue to regularly review deliverable Wherever possible ESG is now the prime factor when entering or renewng supplier agreements. We continued to track our carbon footprint and will be in position to publish the results in 2024. rafcf.org.uk 129 RAF CENTRAL FUND ANNUAL REPORT 2023 PLANS FOR FUTURE PERIODS The core vision of the Fund. to support and enrich the Iwes of those setving in the RAF today and on an enduring basis, continue to urKlerpin the charity's strategic and operational direction. As the Board of Trustees continue to refine and prioritise the direction of the Fund, itr central vitraion and mieeion remain to enable all eerving RAF pereonnel to access sporting opportunities and physical activities with the aim of develop1￿j their full potential. Within this wde-reaching objective. the followrng aims have been defined as the next step5 of the Fund's strategy and fundamental for the period ending 2024. GROW THE FOOTPRINT OF BENEFICIARIES TO ENCOMPASS A GREATER PERCENTAGE OF SERVING PERSONNEL. Throughout 2025 the Fund operated closely with DRS to accomplish the full integration of the RAF Sports Federation, and 35 Sports Associations. into its organisational structure. This represented an opportunity to significantly irnprove the operatiry model for RAF Sport for the benefit of the Service and personnel within. By completing a merger process we are able to revoluts'onise delivery and governance of RAF Sport which will provide significanL lasting and measurable benefit to those Oirectly inVo￿ed in it. >/ This streamlined way of working. with one central charity. will $1gntficantty impr¢)ve the effectweness and efficiency of RAF C In 2024. the Fund will work alongsuje the remaining 17 Sports Associations who operate as official RAF Sports to identify future OPP￿tunitieS to bring them into the organisation. By creatinq this new way of workinq. we envisaqe increased opportunities for sponsorship. reduced liability for Association trustees, reduced administration and more opportunities to share best pracb'ce. The purpose is to create a stronger collective brand. with increased income and influence to benefit more serving personnel than ever before. rafcf.org.uk 130 RAF CENTRAL FUND ANNUAL REPORT 2023 SIGNIFICANTLY INCREASE THE PROFILE OF SPORT, PHYSICAL ACTIVITY AND THE ROLES OF RAF SPORT I RAF CENTRAL FUND WITHIN THE RAF. The Fund enhanced its web profile over the previous 12 months by creating a new 'sports' section which highlights and promotes the $4 Sport Associations. Working with Air Media and RAF Sport. we have significantly improved the consistency and brandlng of these pages by refreshlng Imagery. logos and content for each sport. We are now working to identify ir)novattve ways to improve the look and functionality of this area of the wetyslce. Importantly. we havc 0140 cn4urcd that thc contact informotion containcd on thc Jport pagcpJ j• GDPR compliant and achieving the highest standard of operational governance. Additionalty. the Fund is working with internal RAF ComMunicat￿nS to scope out training and learning opportunities for Sport5 Associations to ensure that èn up-skilling process is undertaken to improve contentand increase the profile of RAF Sport within the RAF. Across 2023 the Fund continued to work closety with RAF News. including a co-authored article between the Fund and DRS. We have also entered into eady discussions to investigate the possibility of re-establishing RAF Active as an additional communications platform for RAF Sport. rafcf.org.uk 131 RAF CENTRAL FUND ANNUAL REPORT 2023 ESTABLISH THE FOUNDATIONS FOR A 'PROFESSIONAL' SPORTS ECOSYSTEM THAT CREATES THE CONDITIONS FOR RAF SPORT TO THRIVE. Over the last year we have continued to work closety with DRS to ensure that RAF Sport continue5 a journey to becoming a T￿re professional environment. We have taken important steps in improving the infrastructure which supports elite and grassroots sport. from enhanced reporting procedures to a streamlined approach to sponsor opp)rtunities. We are now seeking to implement a more holistic IT 5UPPOrt system to benefit our Assoclations, reducing the admlnlstrarfve t￿rden and allowlng sports to focus on engagement and delivery. Further governance improvements. training and learning sessions and a refreshed brand rt with thc crcation of a morc Profcar￿r10nal rJCtting for RAF Sport to prosper in. rafcf.org.uk 132 RAF CENTRAL FUND ANNUAL REPORT 2023 DEVELOP AND SUSTAIN THE RESOURCES REQUIRED TO MEET THE NEEDS OF BENEFICIARIES NOW AND IN THE FUTURE. A focus area for sustaining resources across the coming year will be to improve the commercial pr￿uct we offer as RAF Sport. With this in mind. the Fund has begun the process of curating and strengthening existing relationships. whilst increasing our focus on securing new partnerships. At the same tyme, we wlll be Impro￿ng the commercial processes to implement plans at a far earlier stage in order to maximise the opportunlues to secure addltlonal Income by worklng wlth partner5 well ahead of their budget planning for the 2025 year. The Fund is a150 creating a compelllng Soclal Value proposiuon to provlde examples of the insights and evidence that can ke achieved by working with RAF Sport. The RAF Sport brond and idcntity will bc dcvelopcd throughout thc year to support the anticipated commercial growth. Outside of this. will te providing a calendar of training and support for our Sports Ass¢xiations. helping them to achieve operational excellence by offering expert guidance and advice. This will cover areas such as marketing. braTrJing. funding and governance. Operationally. the Fund will im ￿ernent new governance and finance systems to reduce the administration burden on sports ar)d streamline the work of RAF Sport. Supportirrfj the aims of the organisation as a major income generator. the RAF Sports Lotterywtll continue to be a priority as the Fund works with DRS to brief new recruits. whilst retaining a focus on the wider RAF famity to ensure that the messaging that supports the lottery. and the impact that is mble by playing. is given enhanced visibility. The Central FurKJ will also continue to refine its investments strategy to preserve and grow the valve of the Fund. one of the outcomes of which will be the ability to provide further income sUPPOrt for its grants programmes. rafcf.org.uk 133 -4vri?•%, RAF CENTRAL FUND ANNUAL REPORT 2023 LEGAL STATUS AND ORGANISATION CONSTITUTION The FurTrd is a registered charitable company limited by guarantee. a company regigtered in England and Wales 8555984. a charity registered in England and Wales 1152560 and a charity registered in Scotland SC044299. The Fund has two wholly owned subsidiaries= RAF Central Fund Trading Ltd which became active in 2018. RAF Sports Federation which became a subsidiary in 2023. GOVERNANCE Thp FLind is governed by its Board of Trustees as established within its MpmorandLim and Articles of Association dated 4 June 2013 las adopted by a special resolution passed as a writtpn rpsnlLJtinn on ?J Nnvembpr 20?31 The Articles detprmine that thp Rnarfl mLlSt cnnsiqt 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 TrLJStees subsequent to the appointment. 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 three Trustees. provided that at least two non-serving Trustees are present. Trustees have established a clear policy and procedures for dealing with conflicts and the authorisation thereof. in accordance with Charity Commission guiddines. rafcf_or9.uk 135 RAF CENTRAL FUND ANNUAL REPORT 2023 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 ststutory reporting requirements. incIL￿ing 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 govemance imwrtance. Trustees are encouraged to visit all Fur 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 atter)d intemal and SLtitable external Trustee training courses to ensure an appropriate and on-going understanding is maintained within the Board with regards to significant issues svch as.. govemance.. the role and responsibilities of the Trustees.. understanding charity finance and investments- identifying and managing risks and strategic planning. •• 'TrOROYAL Al~ OYAL NAI rafcf.org.uk 136 y.A F* RAF CENTRAL FUND ANNUAL REPORT 2023 MANAGEMENT AND COMMITTEES The Board of Trustees is responsible for setting the strategic direction of the Fund whilst the day-to-day management of the FuThJ is the responsibility of the Chief Executive Officer. The Chief Exccutive Officer ha" dclegatcd authority to determine operating policie￿. managc operational planning and 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 Executwe Officer with unlimited bank payment authorisation restrictions and the Chief Operating Officer to authorise payments of budgeted expenditure to limit of E ICQ.OW. The Chief Executive Officer can approve items of unbudgeted expenditure subject to an indtvidual item Maximum of So.￿0 where this does not represent more than a IO¥o variance from approved financial forecasts. Details of significant unbudgeted 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 12 of the FurKI's Articles of Association. The Fund's I rustees set clear tems of reference for the Lommittees and recewe regular reports on their activities. rafcf.org.uk 138 RAF CENTRAL FUND ANNUAL REPORT 2023 THE FINANCE AND RISK COMMITTEE The Trustees delegate the oversight of the Fund's finance and risk governance arKJ policies to the Finance and Risk Committee and ensure these are aligned with the Fund's charitsble and strategic oty"ectives. The Committee is required to meet at least biannually and met three times during 2023 to implement the Fund's financial strategy. The Trustees delegate authority to the Committee to approve budgeted expenditure in excess of E50,OCMJ and major single items of unbudgeted expenditure to a maximum of £50.000. subject to an annual limit of £2CM).IXIO. Details of all significant unbudgeted expenditure approvals are presented to the Trustee5 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 biannualty and met wrtualty to consider awards on three occasion5 during 2023. The FuTrJ Trustees have delegated authority to award single grants up to £50.OW within the limits of their annual budget to the Committee. Details of Committee-considered grants are presented to the Trustees at everyTrust* meeting. Where p055ible. 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 closety with other Service charities such a5 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 FurKI work5 closely with the Army arid Navycharities to ensure inclusimty across Defence. rafcf.org.uk 139 RAF CENTRAL FUND ANNUAL REPORT 2023 THE REMUNERATION COMMITTEE The Remuneration Committee was constituted by the Board of Trustees to provide an oversight. rewew and advisory role to the Board with regards to the remuneration of the Fund's senior management and employees. Meeting annually. the Remuneration Committee prowdes recommendations to the Board ot I rustees with regards to all employee remunerations including key management personnel based on an annual rewew ot sector benchmarks. The Committee remain cognisant of the Fund's intent to attract and retain talented and committed employees who can help tlie Fund i ealise it5 objectives to maAimise 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 a 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 Board of Trustees to provide an oversight. review arKI athsory role to the Board with regards to the Fund's investments. The Committee is required to meet bannually arKI met four times during 2023 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 wth the Fund's charitable and strategic objectives. The Trustees authorise the Committee to Tnonitor the Fund's investrnents against its philosophy, risk appetite and wlicies. fafcf.tsrg.￿k 140 RAF CENTRAL FUND ANNUAL REPORT 2023 RISK MANAGEMENT The Trustees review the major risks facing the Fund witttin the annLJal business plannirYJ process to identfy significant risks to the Fund. Implementing procedures to both mitigate risk and to minimise potential impact shoLAld they materialise. The 2023 buoget was formulated In late QS 2022. leveraging the Consumer Price Index as a primary reference point. During the year the Index exhibited notaf)le volatility. wth projections suggesting a stat¥'lisiThJ trend within the range of 3-4%. In anticipation of the RAF Sports Federation and certain RAF Sports Association5 merging into the fund by January 2024, these two scenarios were incorporated into the risk register. The risks aSSOClated with these events were activdy managed and mitigated a5 part of thedue diligence process. rafef.org.uk 142 A RAF CENTRAL FUND ANNUAL REPORT 2023 REVIEW AND FINANCIAL RESERVES LONG TERM INCOME PROTECTION The investment strategy prowdes lorrfJ 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 rewewed to ensure the funds invested continue to meet fotecast yields and ests"mated income needs. DIRECT COSTS Direct costs have routinety been met from unrestrrted investment income generated in the year of application. Trustees have therefore been content to maintsin zero unrestricted reserves for the RAF Central Fund's acb'vities. Followng the merger with the RAF Sports Federation and in line with its reserve policy unrestricted reserves are held to provide ftjnds for 12 months known expenditure. Unrestricted reserves represent £930.260. Expendable endowed fund at year-end was £49,064.16112022 restated.. £47,035,943), of which £42.539.01412022'. £42.533.4421 represented invested funds. Restr icted reserves represent £545.29212022. £477, 1211 The Group has the following restrict•d funds: Mechanics Endowment Fund Funds whereby expenditure is restricted for the berEfit of RAF trainees, especially those in the engineering disciplines. Charitable third-party funds Funds (ire primarily for the purchose of equiprnent tand training for ttrie RAF sports a55OCl¢ltioii and to support its elite sports individuals. rafcf.org.uk 144 RAF CENTRAL FUND ANNUAL REPORT 2023 FINANCIAL RESERVES The applicat￿n 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. For (he purposes of (his updale. Ihe collective organisations of the Royal Air Force Central Fund. Royal Air Force Central Fund Trading Company and RAF Sports Federation are referred to 85 the'Group. To generate income to support the enrichment grants programme and the Fund's administrative. governance and support costs. and being C￿nIsant of spec￿lISt advice regarding investment income returns. the Board deem it appropriate and necessary to maintain for the Group invested reserves at a level of E44-45 million within total reserves of appr0￿MatelY E50 million. At the year-end the Group held totsl reserves of E50.539.713 including invested reserves of £43,959,249. The Trustees are content that the closing 2023 reserves balance of E50,539.713 is ppropriate given the current volatility in the investment markets. economic climale ènd currentas well as ongoing merger plans. The reserves policy is subject to annual remew. The balance sheet confirms that the Fund has adequate working capital to meet any Obligat￿nS as tttey fall due. The results for the Group are shown on page $3. rafcf org uk | 45 RAF CENTRAL FUND ANNUAL REPORT 2023 TRUSTEES RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS AND AUDITORS Company law requires the Trustees (tho 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 Charitab￿ company at the erKI of the financial year and of rfcs deficit f(K the financial year. In doing so the Trustees are required to.. Select suitable accounting polic￿5 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 tinancial statements. Prepare the financial statements on the going concem basis unless it is inappropriate to presume that the Charity will continue in operation. The Trustees are responsible for maintaining proper accountin9 records which dlsclose 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 201 J and the Charities Accounts (Jcotlandl RegLblab'ons 200G. The Trustees are also responsible for the safeguarding of the assets of the Charity and for taking reasork3ble steps for the prevention and detection of fraud and other irregularittes. rafcf.org.uk 147 RAF CENTRAL FUND ANNUAL REPORT 2023 In accordance wth Company law. the Fund's Trustees certify.. There is no relevant audit information of which the Fund's auditors are unawére. The Trusteesof the Fund have taken all thesteps that theyought to have taken in order to make themselves aware ol any relevant auéit information and to estat￿lsh that the Fund's auditors are aware of the information. RAF Central Fund complies 6Mth the Fundraising Standards Board Requirements and only utilising agencies that are compliant wth the Fundraising RegUlatI￿S. We aim to meet the highest standards so that supporters and vdunteers give and fundraise for the Fund with confidence. No comrAaints have been received In respect of fundraising durir4J 2023. AUDITORS Mozars LLP acted as the Fund auditors during 2023 before the contract was awarded to Richard Place Dobson Services Limited. This report has been prepared in accordance with the special provisions of the Companies Act 2006 relating to small companies. The Trustees. ènd Sirategic Report for the year ended 3 1 December 2023 was approved by the Trustees in their capacityas the Company Directors and signed on behalf of the Trustees.. Group Captain M Williams Trustee and Member of the Financeand Risk Committee Dated: 7 September 2024 rafcf org uk | 48 •1 ## **INDEPENDENT AUDITOR'S REPORT** ## **TO THE MEMBERS OF ROYAL AIR FORCE CENTRAL FUND** ## **Opinion** We have audited the financial statements of The Royal Air Force Central Fund (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of financial activities, the group balance sheet, the charitable company balance sheet, the group statement of cash flows, the charitable company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: give a true and fair view of the state of the group's and the parent charitable company's affairs as at 31 December 2023 and of the group's incoming resources and application of resources 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, the Charities and Trustees Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations2006 (as amended).. ## **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 group and parent charitable company 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 directors' 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 and parent charitable company’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 directors 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 annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. 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. 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 this gives rise to a material misstatement in the financial statements themselves. 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 our audit: the information given in the Trustees' report, including the strategic report, for the financial year for which the financial statements are prepared is consistent with the financial statements; and the Trustees' report, including the strategic report, has been prepared in accordance with applicable legal requirements. ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF ROYAL AIR FORCE CENTRAL FUND** ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006, the Charities (Accounts and Reports) Regulations 2008 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion: - adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or the parent charitable company financial statements are not in agreement with the accounting records and returns; or certain disclosures of Trustees and Directors' 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' rresponsibilities sstatement, the trustees, who are also directors for the purposes of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the parent charitable company'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 parent charitable company or to cease operations, or have no realistic alternative but to do so. ## **Auditor's responsibilities for the audit of the financial statements** Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. We have made enquiries of management, and trustees, regarding the procedures relating to identifying, evaluating and complying with 1. laws and regulations and whether they were aware of any instances of non-compliance; 2. detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; 3. the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; We obtained an understanding of the legal and regulatory framework that the Parent Charitable Company and its subsidiaries operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the Parent Charitable Company and its subsidiaries. The key laws and regulations we considered in this context included the UK Companies Act, The Charities Act and the Charities and Trustees Investment (Scotland) Act, data protection regulations, employment legislation, lottery and gaming regulations and taxation laws and regulations. Discussion was had with management and the directors and amongst the engagement team to gain an understanding of the entities current activities, authorisation procedures and effectiveness of the control environment. Our understanding was tested during the audit work and the systems and controls in place were found to be operating effectively. The engagement partner has reviewed the team selected to undertake the engagement and ensure that they have sufficient competence and are capable of identifying and recognising non-compliance with laws and regulations. No non-compliance was identified. Discussion among the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud and / or error in the following areas: ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF ROYAL AIR FORCE CENTRAL FUND** |**Risks identified**|**Audit response**| |---|---| |Valuation of Investments|Audit Procedures included, but not limited to, obtaining and reviewing investment reports| ||from investment managers, completing a review of controls of each investment manager,| ||obtaining confirmation that title of investments was held by the Charitable company.| |Management override of|Audit procedures performed included but were not limited to testing manual journal entries| |controls|and other adjustments and evaluating the business rationale in relation to any significant,| ||unusual transactions entered into outside of the normal course of business.| |Revenue recognition|Audit procedures performed included but were not limited to performing walk through| ||tests to identify the control procedures in place and once an understanding of the revenue| ||recognition process was gained, substantive tests were carried out using a sample basis to| ||ensure the revenue existed and was complete in the accounts. Cut off testing was also| ||performed to ensure sales were recorded in the correct period.| |Accounting treatment of|Audit procedures performed included but were not limited to enquiring with management| |Property|the basis on which rental property was recognised in the accounts and verifying that the| ||explanations given were valid.| ||| A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/ auditorsresponsibilities. This description forms part of our auditor's report. ## **Use of our report** This report is made solely to the company’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 company’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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed. ## **Darren Harding ACA, FCCA, DChA (Senior Statutory Auditor)** ## ~~**For**~~ **a** ~~**nd on behalf**~~ **o** ~~**f Richard Pla**~~ **c** ~~**e Dobson Services Limited**~~ ## **Chartered Accountants** **Date** ~~**: ...**~~ **20** ~~**..**~~ **September 2024** ~~**....................**~~ Ground Floor 1 - 7 Station Road Crawley West Sussex RH10 1HT ## **Statutory Auditor** **THE ROYAL AIR FORCE CENTRAL FUND** ## **Consolidated Statement of Financial Activities (incorporating the Income and Expenditure Account) for the year ended 31 December 2023** |**Note**
2
Donations
Other Income
3
Trading Activities
Investment Management Costs
**Total Funds Bought Forward**
**Total Funds Carried Forward**
Sports Lottery Operations & Fundraising Trading
**_Total Expenditure_**
**Net gains on investments**
**Net Income/(Expenditure)**
**Transfers between Funds**
**Introduction of a pension Liability**
Actuarial (losses) on defined benefit pension
schemes
**Income**
Charitable Activities
Raising Funds
Investment Income
**_Total Income_**
**Expenditure**
Charitable Activities
**Raising Funds**
**_Net Movement in Funds_**|**Unrestricted Fund**
**Expendable**
**Endowment**
**Fund Restricted Fund**
**Total 2023**
**Restated Total**
**2022**

**£**
**£**
**£**
**£**
**£**
189,289
-
113,902
**303,191**
370,952
328,206
-
-
**328,206**
150,612
3,109,099
-
-
**3,109,099**
3,067,206
1,235,670
-
8,487
**1,244,157**
737,3
0
1,062,507
-
94,835
**1,157,342**
2,440
**5,924,771**
-
**217,224**
**6,141,995**
4,328,5
0
3,149,427
-
149,053
**3,298,480**
2,974,200
1,246,543
-
-
**1,246,543**
1,199,957
108,209
-
-
**108,209**
124,904
-
384,800
-
**384,800**
341,566
**4,504,179**
**384,800**
**149,053**
**5,038,032**
4,640,627
-17,694
2,006,380
-
**1,988,686**
-1,413,227
**1,402,898**
**1,621,580**
**68,171**
**3,092,648**
-1,725,2
4
**-66,000**
**-**
**-**
**-66,000**
-172,000
-406,638
406,638
-
-
-
**930,260**
**2,028,218**
**68,171**
**3,026,648**
-1,897,2
4
-
47,035,943
477,121
**47,513,064**
49,410,3
8
930,260
49,064,161
545,292
**50,539,713**
47,513,064| |---|---| 53 ## **THE ROYAL AIR FORCE CENTRAL FUND** ## **Consolidated and Charity Balance Sheets as at 31 December 2023** |Note
**Fixed Assets:**
Intangible Assets
8
Tangible Assets
9
Heritage Assets
9
Investments
10
**Total Fixed Assets**
**Current Assets:**
Debtors
11
Cash at Bank and in Hand
Investments
10
**Total Current Assets**
**Creditors:**Amounts Falling due Within One
Year
12
**Net Current Assets**
**Total Assets less Current Liabilities**
**Pension Liability**
**Net Assets**
**Reserves**
13
Expendable Endowment Fund
Restricted Funds
Unrestricted Fund
**Total Funds**|**Endowment**
**Fund**
**Restricted**
**Fund**
**Unrestricted**
**Group Total**
**2023**
Restated Group
Total 2022

**£**
**£**
**£**
£
15,000
- -
**15,000**
9,253
1,592,166
- -
**1,592,166**1,659,427
7,000
- -
**7,000**47,016
42,539,014 438,010 982,225**43,959,249**43,010,563
**44,153,180 438,010 982,225 45,573,415**44,726,259
2,324,550
- 99,870**2,424,420**675,546
3,068,911 107,282 80,019**3,256,212**2,676,184
- -
**-**-
**5,393,461 107,282 179,889 5,680,632**3,351,730
277,480
- 26,854 304,334 392,925
**5,115,981 107,282 153,035 5,376,298**
2,958,805
**49,269,161 545,292 1,135,260 50,949,713**47,685,064
**205,000**
**- 205,000 410,000**
172,000
**49,064,161 545,292 930,260 50,539,713**47,513,064
49,064,161
- - 49,064,161 47,035,943
- 545,292
- 545,292 477,121
- - 930,260 930,260
-
**49,064,161 545,292 930,260 50,539,713**47,513,064|**Charity Total**
**2023**
estated Charity
Total 2022
**15,000**
9,253
**1,592,166**
1,659,427
**7,000**
47,016
**42,977,024**
43,010,563
**44,591,190**
44,726,259
**2,284,343**
619,018
**3,017,841**
2,643,847
**- -**
**5,302,184**
3,262,865
218,842 319,714
**5,083,342**
2,943,151
**49,674,532**
47,669,410
**205,000**
172,000
**49,469,532**
47,497,410
49,031,522 47,020,289
438,010 477,121
-
-
**49,469,532**
47,497,410| |---|---|---| **The Financial Statements were approved by the board of Trustees on 7[th] September 2024 and were signed on their behalf by:** **Group Captain M Williams Trustee and Chair of the Finance and Risk Committee** Companies House registration number 8555984 The notes on pages 6 to 7 form part these financial statements 54 ## **THE ROYAL AIR FORCE CENTRAL FUND** ## **Consolidated Statement of Cash Flows for the ended 31 December 2023** **----- Start of picture text -----**
estated
2023 2022
£ £
Cash flow from Operating Activities
Net cash used in operating activities -2,614,866 -673,866
Cash flow from Investing Activities:
Dividend Receipts 1,235,670 735,906
Investment management costs -168,473 -113,195
Fixed asset dditions -9,926 -3,887
Intangible fixed asset additions -15,000 -
Proceeds from Sale of Investments 12,300,926 7,678,182
Payment to Purchase Investments -10,294,403 -7,203,003
Merger Cash In Bank 146,100 -
Net cash provided by investing activities 3,194,894 1,094,003
Change in Cash & Cash Equivalents 580,028 420,137
Cash & Cash Equivalents at 1 January 2,676,184 2,256,047
Cash & Cash Equivalents as at 31 December 3,256,212 2,676,184
Notes to the Cash Flow Statement
Reconciliation of net Income to net cash flow from operating activities 2023 Restated 2022
£ £
Net income for the period 3,026,648 -1,897,2 4
Adjustment for:
Donation -1,150,805
(Gains) on Investments -1,988,686 1,413,227
Investment Income -1,244,157 -737,3 0
Investment Management Fees 384,800 341,566
Depreciation/Amortisation 88,783 90,050
Decrease/(Increase) in Debtors -1,748,874 76,207
(Decrease) in Other Creditors -88,591 -132,272
Pension Liability 66,000 172,000
Loss on disposal of asset 40,016
Net Cash used in operating activities -2,614,866 -673,866
**----- End of picture text -----**
## **Analysis of Cash & Cash Equivalents** |Cash in hand
Total Cash & Cash Equivalents|**31 December**
**2022**
**Cash flow**
**£**
**£**
2,676,184
580,028
**2,676,184**
**580,028**|**31 December**
**2023**
**£**
3,256,212
**3,256,212**| |---|---|---| 55 ## **THE ROYAL AIR FORCE CENTRAL FUND** ## **Notes to the Financial Statements for the Year to 31 December 2023** ## **Principal Accounting Policies 2023** 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 consolidated group financial statements consist of the financial statements of RAF CF, together with the following entities controlled by the trust RAF SF and RAF TC (its subsidiaries). All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of the subsidiaries to bring the accounting policies in line with those used by the holding Trust. All intra-group transactions, balances and unrealised gains on transactions between the group are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases. 56 ## **THE ROYAL AIR FORCE CENTRAL FUND** ## **Notes to the Financial Statements for the Year to 31 December 2023** ## **Income** Raising funds income is mainly derived from the Lottery Income and is recognised when the lottery draw takes place. Investment income is accounted for on an accrual basis and comprises dividend income and interest on cash deposits. Charitable Activities are returned grants where the beneficiaries were not able to spend the grant in the year or in line with the grant policy. Other income consists of mostly of bank interest and 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 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. 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 payment is made to the recipient. Support costs consist of salary and other expenditure incurred to facilitate the administration and governance of the . 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 is exempt from corporation or income taxation based on the applying all of its income and gains for wholly charitable purposes. 57 ## **THE ROYAL AIR FORCE CENTRAL FUND** ## **Notes to the Financial Statements for the Year to 31 December 2023** ## **Intangible Fixed Assets** Intangible Fixed assets are measured at cost less accumulated amortisation. Software development costs are recog sed 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. ## **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 cost less estimated residual value 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|10 years| |Buildings|30 years| Depreciation is not charged in the year of acquisition, with a full year charged in the year of disposal. The owned a number of items of heritage silverware. These items hold significant cultural importance to the Royal Air Force and the Trustees felt these should be handed to RAF Heritage . These tems amounting to £40,016 were disposed of in the year. The Fund continues to own two paintings which hang in the Ministry of Defence building in London. (est value: £7000) 58 ## **THE ROYAL AIR FORCE CENTRAL FUND** ## **Notes to the Financial Statements for the Year to 31 December 2023** ## **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 for retail investment management fees arising from holding in-house funds; the pays institutional investment management fees based on the capital value of the harity's investment portfolio. ## **Funds Structure** The expendable endowment fund represents the original capital of the . 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. Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. The surplus for the year arising on RAF Central Fund activities is transferred to the expendable endowment fund at the end of each year. Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and use of the designated funds are set out in the notes to the financial statements. ## **Financial Instruments** The charitable company only has financial assets and liabilities of a kind that qualify as a basic financial instruments. Basic inancial instruments are initially recognised at the transaction value and subsequent y measured at their settlement value. ## **Basic Financial assets** Basic financial assets, which include debtors and cash and bank balances, are initially measured at the transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. 59 ## **THE ROYAL AIR FORCE CENTRAL FUND** ## **Notes to the Financial Statements for the Year to 31 December 2023** ## **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 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. ## **Employee Benefits** The costs of short-term employee benefits are recognised as a liability and an expense. The costs of any unused holiday entitlement is recognised in the period in which the employee's services are received. ## **Critical accounting estimates and judgements** In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. _The main judgement in the accounts is_ : Properties which are rented out are to be fixed assets of the property rather than investment properties on the basis that they are held to provide accommodation for service personnel first and only if there is spare capacity are they rented out to the general public. On this basis the properties are carried in the accounts at cost. _The main estimates included in the accounts are:_ The valuation of investments, which are included at market value as provided by 3[rd] party valuers. The estimated residual value of property is considered by the trustees to be in excess of the carrying value , which it is included in the accounts at. There is therefore no depreciation charge currently on buildings. 60 **THE ROYAL AIR FORCE CENTRAL FUND** ## **Notes to the Financial Statements for the year-ended 31 December 2023** ## **Note 1 Statement of Financial Activities Analysis for the year-ended 31 December 2022** |**Donations**
**Trading Activities**
**Other Income**
Trading Activity
Investment Management Costs
**Effective prior year adjustment**
**Total Funds Carried Forward**
**Raising Funds**
**_Total Expenditure_**
**_Net Movement in Funds_**
**Total Funds Bought Forward**
**Introduction of a pension Liability**
Actuarial (losses) on defined benefit pension schemes
**Transfers between Funds**
Sports Lottery Operations & Fundraising Trading
**Expenditure**
**Net gains on investments**
**Net Income/(Expenditure)**
**Investment Income**
**Income**
**_Total Income_**
**Charitable Activities**
**Charitable Activities**|**Unrestricted**
**Fund**
**Expendable**
**Endowment**
**Fund**
**Restricted**
**Fund**
**Restated Total**
**2022**
**£**
**£**
**£**
**£**
370,952
-
-
**370,952**
150,612
-
-
**150,612**
3,067,206
-
-
**3,067,206**
735,906
-
1,444
**737,350**
2,440
-
-
**2,440**
**4,327,116**
-
**1,444**
**4,328,560**
2,909,157
-
65,043
**2,974,200**
1,199,957
-
-
**1,199,957**
124,904
-
-
**124,904**
-
341,566
-
**341,566**
**4,234,018**
**341,566**
**65,043**
**4,640,627**
-
-1,413,227
-
-1,413,227
**93,098**
**-1,754,793**
**-63,599**
**-1,725,294**
**-172,000**
**-172,000**
78,902
-78,902
-
**-**
-
**-1,833,695**
**-63,599**
**-1,897,294**
-
47,605,346
540,720
**48,146,066**
-
1,264,292
-
**-**
-
47,035,943
477,121
**47,513,064**| |---|---| 61 **THE ROYAL AIR FORCE CENTRAL FUND** ## **Notes to the Financial Statements for the year-ended 31 December 2023** ## **Note 2 Income** **----- Start of picture text -----**
2023 Restated 2022
Analysis £ £
Donations Donations 189,289 370,952
Restricted Donations 113,902 -
Total 303,191 370,952
Charitable Activities Returned Grants 101,272 150,612
Grant In Aid 226,935 -
Total Unrestricted 328,206 150,612
Raising Funds Lottery Ticket Sales 2,943,699 2,896,177
Other Trading Income 165,399 171,029
Total Unrestricted 3,109,099 3,067,206
Investment Income Dividends on Investments 1,235,670 737,350
Restricted Dividends on Investments 8,487 -
Total 1,244,157 737,350
Other Income Miscellaneous Receipts 6,537 2,440
Unrestricted Merger Donation 1,055,970 -
Restricted Merger Donation 94,835 -
Total 1,157,342 2,440
**----- End of picture text -----**
## **Note 3 Expenditure** |**Charitable Activities***
**Raising Funds**|**2023**
Restated 2022
**£**
£
**1,243,516**
1,201,137
**3,028**
-1,180
Investment Management Fees
**384,800**
341,566
**108,209**
124,904
**1,739,552**
1,666,427
**153,481**
143,125
**1,520,340**
1,388,706
Sport
Associations
upport Services
**277,710**
**-**
**891,781**
897,871
**452,604**
541,372
**2,565**
3,126
**3,298,480**
2,974,200
Enrichment Facilities and Projects
Sports Association
Grants
Development Through Sports Grants
Sports Facilities
Grants to Service Support Charities
**Total**
**Analysis**
RAF Sports Lottery Operations
Fundraising Activity
Trading Company Activity
**Total**| |---|---| * See Note 4 for analysis of support costs **The numbers above include restricted expenditure amounting to £149,053 broken down as follows** Under Sport Association Grants restricted funds represent £101,455 Under Development Through Sports Grants restricted funds represent £12,500 (2022: £65,043) Under Sports Facilities restricted funds represent £35,098 62 **THE ROYAL AIR FORCE CENTRAL FUND** ## **Notes to the Financial Statements for the year-ended 31 December 2023** ## **Note 4 Support Costs** **----- Start of picture text -----**
Total Cost 2022
Raising Funds Charitable Activity 2023
£ £ £ £
Staff Costs 110,230 592,483 702,714 485,756
Other Costs 53,120 258,817 311,937 238,601
Governance Costs - 116,344 116,344 45,489
Total 163,350 967,644 1,130,994 769,846
**----- End of picture text -----**
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** |Auditors' Fees for Reporting on the Accounts - Trading Subsidiary
Auditors' Fees for Reporting on the Accounts - Charity
Other fees payable to auditors
Auditors' Fees for Reporting on the Accounts - Sports Federation
S
Fees payable to previous auditors - Sports Federation Subsidiary|**2023**
**£**
2022
£
**19,200**
15,840
**2,400**
2,500
**7,500**
**-**
**4,554**
**-**
**1,500**
**-**
**35,154**
**18,340**| |---|---| ## **Note 6 Trustees & Employees** |**Total Staff Costs**
Employer's Pension Costs
Employer’s National Insurance Costs
**6.1 Staff Costs**
Wages and Salaries|**2023**
2022
**£**
£
**623,240**
434,015
**62,898**
43,059
**16,576**
8,681
**702,714**
485,756| |---|---| 63 ## **THE ROYAL AIR FORCE CENTRAL FUND** ## **Notes to the Financial Statements for the year-ended 31 December 2023** ## **Note 6.1 (continued)** 1 employee earned between £60,001 and £70,000 during the period (2022: 1, £60,001 and £70,000). 1 employee earned between £100,001 and £110,000 during the period (2022: 1, £100,001 and £110,000). 1 employee earned between £110,001 and £120,000 during the period. The Fund made payment to its key management personnel of £290,028 during 2023 (2022: £181,153). The members of key role are considered to be 2 CEOs and 1 COO **----- Start of picture text -----**
6.2 Average Headcount 2023 2022
Average Average
Full-Time 12.00 8.00
Part-Time 4.00 4.00
Total 16.00 12.00
**----- End of picture text -----**
## **6.3 Payments to Trustees** Trustees neither received nor waived any emoluments during 2023 (2022: £nil). Out of pocket expenses were reimbursed to Trustees amounting to £419 (2022: £12 ) ## **Note 7 Grants and Programme** ||||||||**Support**||**Restated**| |---|---|---|---|---|---|---|---|---|---| |||||||**Grants**|
**Costs**|
**Total Grants**|
**Total Grants**| |||||||**2023**|**2023**|**2023**|**2022**| |||||||**£**|**£**|**£**|**£**| |Enrichment Facilities and Projects||||||22,160|131,321|**153,481**|**143,125**| |Sports||Association
|Grants|||1,323,375|196,965|**1,520,340**|**1,388,706**| |Sport
|Associations|||upport Services||**-**|
277,710|**277,710**|**-**| |Development Through Sports Grants||||||746,729|145,052|**891,781**|**897,870**| |Sports||Facilities||||238,572|214,032|**452,604**|**541,372**| |Grants||to Service Support Charities||||**-**|
2,565|**2,565**|**3,127**| ||||||**Total**|**2,330,836**|**967,645**|**3,298,480**|**2,974,200**| 64 ## **THE ROYAL AIR FORCE CENTRAL FUND** ## **Notes to the Financial Statements for the year-ended 31 December 2023** ## **Note 7 Grants (continued)** ## **Grants made to Institutions** Grants Institutions with a value in excess of £25,000 are shown individually: **----- Start of picture text -----**
Grant Award Restated
2023 Grant Award
£ 2022
£
RAF Akrotiri 78,973 -
RAF Cosford 48,688 67,943
RAF Cranwell 56,548 50,000
RAF Halton 33,038 -
Deployed Forces 22,160 29,415
RAF Leeming 13,938 24,660
RAF Lossiemouth 10,259 35,000
RAF Marham 41,292 -
RAF Wittering 34,436 -
RAF Angling Association 54,283 48,910
RAF Bobsleigh, Luge and Skeleton Association 110,563 117,461
RAF Equitation 34,460 29,885
RAF Football Association 48,990 27,281
RAF Gliding & Soaring Association 44,057 41,357
RAF Golf Association 34,599 36,849
RAF Microlight Flying Sports Association 31,490 56,775
RAF Motor Sports Association 87,233 106,103
RAF Nordic Association 26,359 25,747
RAF Rowing Association 11,587 29,846
RAF Sailing Association 60,353 72,199
RAF Small Arms Association 53,125 56,725
RAF Sports Parachuting Association 36,883 32,527
RAF Swimming Association 38,811 41,367
RAF Waterski & Wakeboard Association 27,111 25,111
RAF Winter Sports Association 89,503 101,961
Others 503,493 565,970
Other stations grants from ift aided profit - 115,951
Total Grants 1,632,233 1,739,043
**----- End of picture text -----**
During the year 2,766 rants were made to ndividuals (2022: 2,393) at a value of £698,603 (2022: £597,883) to enable access to sport and physical activity. 65 **THE ROYAL AIR FORCE CENTRAL FUND** ## **Notes to the Financial Statements for the year-ended 31 December 2023** ## **Note 8 Intangible Fixed Assets Group and Charity** **----- Start of picture text -----**
Software
Development
£
Cost b ought forward at 1 Jan 23 43,387
Additions 15,000
Disposals -
Cost carried forward at 31 Dec 23 58,387
Amoritisation b ought forward at 1 Jan 22 34,134
Provision for Year 9,253
Released on disposal -
Amortisation carried forward at 31 Dec 23 43,387
Net Book Value b ought forward at 1 Jan 23 9,253
Net Book Value carried forward at 31 Dec 23 15,000
**----- End of picture text -----**
## **Note 9 Group Tangible Fixed Assets** ||**Freehold land &**|
**Computers &**|
**Fixtures &**|
**Heritage Assets**|**Total**| |---|---|---|---|---|---| ||**buildings**|**Information**|
**Fittings**||| |||**Technology**|||| ||**£**|**£**|**£**|**£**|**£**| |Cost b
ought forward at 1 Jan 23|1,661,484|
46,747|
240,744|
47,016|
1,995,991| |Additions|-|
3,836|
6,090|
-|
9,926| |Disposals|-|
-17,328|
-4,680|
-40,016|
-62,024| |Cost carried forward at 31 Dec 23|**1,661,484**|
**33,255**|
**242,154**|
**7,000**|
**1,943,893**| ||||||| |Depreciation b
ought forward at 1 Jan 23|145,883|
36,561|
104,761|
-|
287,205| |Provision for year|49,665|
6,221|
23,644|
-|
79,530| |Released on disposal|-|
-17,328|
-4,680|
-|
-22,008| |Depreciation carried forward at 31 Dec 23|**195,548**|
**25,454**|
**123,725**|
**-**|
**344,727**| ||||||| |Net Book Value b
ought forward at 1 Jan 23|1,515,601|
10,186|
135,983|
47,016|
1,708,786| |Net Book Value carried forward at 31 Dec 23|**1,465,936**|
**7,801**|
**118,429**|
**7,000**|
**1,599,166**| ## **Note 9a Charity Tangible Fixed Assets** ||**Freehold land &**|
**Computers &**|
**Fixtures &**|
**Heritage Assets**|**Total**| |---|---|---|---|---|---| ||**buildings**|**Information**|
**Fittings**||| |||**Technology**|||| ||**£**|**£**|**£**|**£**|**£**| |Cost b
ought forward at 1 Jan 23|1,661,484|
33,229|
236,064|
47,016|
1,977,793| |Additions|-|
3,836|
6,090|
-|
9,926| |Disposals|-|
-11,915|
0|
40,016|
-51,931| |Cost carried forward at 31 Dec 23|**1,661,484**|
**25,150**|
**242,154**|
**7,000**|
**1,935,788**| ||||||| |Depreciation b
ought forward at 1 Jan 23|145,883|
25,386|
100,081|
-|
271,350| |Provision for year|49,665|
3,878|
23,644|
-|
77,187| |Released on disposal|-|
-11,915|
-|-|
-11,915| |Depreciation carried forward at 31 Dec 23|**195,548**|
**17,349**|
**123,725**|
**-**|
**336,622**| ||||||| |Net Book Value b
ought forward at 1 Jan 23|1,515,601|
7,843|
135,983|
47,016|
1,706,443| |Net Book Value carried forward at 31 Dec 23|**1,465,936**|
**7,801**|
**118,429**|
**7,000**|
**1,599,166**| 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 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 focused 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. During the year a collection of silver, which has been held by the was disposed f. There were no proceed received for this disposal. 66 ## **THE ROYAL AIR FORCE CENTRAL FUND** ## **Notes to the Financial Statements for the year-ended 31 December 2023** ## **Note 10 Investments** **----- Start of picture text -----**
10.1 Fixed Assets Investments 2023 2022
£ £
Carrying value b ought forward 44,184,923 45,125,897
Additions to investments at cost 10,302,892 7,204,446
Disposals at carrying value -12,300,926 -7,678,182
Management Fee -216,326 -228,371
Realised gain/(loss) on sale -861,694 127,519
Unrealised revaluation movement 2,850,380 -1,540,746
Carrying value carried forward 43,959,249 43,010,563
Historic cost as at 31 December 40,153,733 41,833,623
10.2 Analysis of Investments Market value Market value Income from Income from
31 December 31 December Investments Investments
2023 2022 2023 2022
£ £ £ £
Charity
CCLA Investments 155,948 149,401 8,487 1,444
Blackrock Charinco Common Investment Fund 11,542 15,328 467 350
Insight Global ABS Fund 1,813,809 1,744,097 94,851 41,624
Savills - Charities Property Fund 3,620,501 3,851,286 235,388 160,259
Marathon - Distressed Credit Fund 2,489,609 2,461,739 117,637 -
Ardevora 1,368,193 1,266,300 20,147 21,245
Baillie Gifford 1,229,742 1,128,292 6,789 -
LGIM 15,794,878 9,288,992 317,629 175,327
Barings - 5,320,421 88,111 337,101
Beachpoint - 5,759,574 - -
Knightsbridge 954,414 747,318 - -
JP Morgan -IIF Uk 1 5,065,831 5,161,985 283,916 -
IFM 6,597,002 6,115,831 30,366 -
Marathon Secured 763,516 - 2,639 -
Blackstone 617,904 - 7,782 -
Napier Park 2,494,137 - - -
Charity Total 42,977,024 43,010,563 1,214,208 737,350
Blackrock Armed Forces Charities Growth & Income Fund 982,225 - 29,950 -
Group Total 43,959,249 43,010,563 1,244,158 737,350
**----- End of picture text -----**
67 ## **THE ROYAL AIR FORCE CENTRAL FUND** ## **Notes to the Financial Statements for the year-ended 31 December 2023** ## **10.4 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): **----- Start of picture text -----**
Market Value £ Percentage of
Portfolio
Savills - Charities Property Fund 3,620,501 8%
Marathon - Distressed Credit Fund 2,489,609 6%
LGIM 15,794,878 36%
Napier Park 2,494,137 6%
JP Morgan - IIF UK 1 5,065,831 12%
IFM 6,597,002 15%
**----- End of picture text -----**
## **Note 11 Debtors and Prepayments** |**Group**
**Total**
**Charity**
**Total**
Trade Debtors
**Analysis of Debtors**
**Analysis of Debtors**
Trade Debtors
Prepayments and Accrued Income
Prepayments and Accrued Income|**2023**
Restated 2022
**£**
£
**182,396**
215,038
**2,242,023**
460,508
**2,424,420**
675,546
**2023**
Restated 2022
**£**
£
**79,455**
173,313
**2,204,888**
445,705
**2,284,343**
619,018| |---|---| Accrued income represents the net of monies collected by the harity'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 202 , payable Q1 202 . ## **Note 12 Creditors and Accruals** |Other Creditors
**Total**
Sports Grant Creditors
Accruals and Deferred Income
**Analysis of Creditors falling due within one year**
Committee Grant Creditors
Tax and Social Security Creditors
**Group**|**2023**
Restated 2022
**£**
£
**-**-
**-3**
-8,904
**15,925**
11,819
**261,012**
357,656
**27,401**
32,354
**304,335**
392,925| |---|---| |**Charity**
**Total**
Accruals and Deferred Income
Other Creditors
Tax and Social Security Creditors
Sports Grant Creditors
**Analysis of Creditors falling due within one year**
Committee Grant Creditors|**2023**
Restated 2022
**£**
£
**-**-
**-3**
-8,904
**14,521**
11,819
**181,910**
290,645
**22,415**
26,154
**218,842**
319,714| |---|---| 68 ## **THE ROYAL AIR FORCE CENTRAL FUND** ## **Notes to the Financial Statements for the year-ended 31 December 2023** ## **Note 13 Funds** ## **13.1 Funds Held** **----- Start of picture text -----**
Expendable Expendable Expendable Endowment for RAF Central Fund - Unrestricted.
Endowment Endowment
Monies transferred into the RAF Central Fund upon close of the Mechanics
Mechanics Fund Restricted Endowment Fund. Restricted for the benefit of RAF trainees, especially those in
the engineering disciplines.
BAE Systems Restricted Restricted Funds to support elite and High Performing Athletes
CAE Restricted Provided for RAF Sports
Used to grow RAF Sport by Investing in serving personnel (Coaching, Match
RAF Charitable Trust Restricted Officials, 1st Aiders)
Royal British Legion Restricted A partnership for 5 RAF Sports Associations
Nuffield Trust Grant Restricted To be used by the Associations in Sports Equipment
Note 13.2 Funds
13.2 Movements of Major Funds
Fund
balances
brought Restated Fund Charity
forward as Fund balances balances
previously Prior Year balances Expenditu Gains and carried carried
stated adjustment bfw Income re Transfers losses forward forward
Fund Names £ £ £ £ £ £ £
General Reserves - - - 1,235,670 -108,209 -406,638 -66,000 930,260 -
Expendable 46,048,510 -46,048,510 - - - 406,638 - 406,638 373,999
Endowment Fund
Mechanics 477,121 - 477,121 113,902 -1,350 - - 589,673 589,673
Endowment Fund
BAE Systems - - - 42,086 -8,545 - - 33,541 -
CAE - - - 18,774 -2,518 - - - -
RAF Charitable Trust - - - 200 -3,475 - - -3,275 -
Royal British Legion - - - - -865 - - -865 -
Nuffield Trust Grant - - - 83,702 -86,053 - - -2,351 -
Total Funds 46,525,631 -46,048,510 477,121 1,494,334 -211,015 - -66,000 1,953,621 963,671
**----- End of picture text -----**
Included within reserves above is £3,805,515 (2022: £1,176,940) of unrealised gains relating to the Group investments. Included within reserves above is £3,426,124 (2022: £1,176,940) of unrealised gains relating to the Charity investments. ## **13.3 Movement of Major Fund 2022** ||**Restated**||||||||||**Restated**|| |---|---|---|---|---|---|---|---|---|---|---|---|---| ||**Fund**||||||||**Fund**||**Charity**|| ||**balances**||||||||**balances**||**balances**|| ||**bought**|||**Expenditu**|||**Gains and**||**carried**||**carried**|| ||**forward**|**Income**||**re**|**Transfers**||**losses**||**forward**||**forward**|| |**Fund Names**|**£**|**£**||**£**|**£**||**£**||**£**||**£**|| |General Reserves||4,327,116||-4,406,018|78,902|||-||**-**||**-**| |Expendable
Endowment Fund|48,869,638|||-341,566|-78,902||-1,413,227||**47,035,943**||**47,020,289**|| |Mechanics
Endowment Fund|540,720||1,444|-65,043||-||-|**477,121**||**477,121**|| |**Total Funds**|**49,410,358**|**4,328,560 **||**-4,812,627**||-|**-1,413,227**||**47,513,064**||
**47,497,410**|| 69 **THE ROYAL AIR FORCE CENTRAL FUND** ## **Notes to the Financial Statements for the year-ended 31 December 2023** ## **Note 13 Funds** ## **13.4 Transfers Between Funds** **----- Start of picture text -----**
From Fund (Name) To Fund (Name) Reason Amount
General Reserves Expendable Endowment Support 2023 Grant Awards
13.5 Group Analysis of Net Funds
Expendable Restricted Unrestricted Total 2022
Endowment Funds Funds Total Funds Restated
£ £ £ £ £
Intangible Fixed Assets 15,000 - - 15,000 9,253
Tangible Fixed Assets 1,599,166 - - 1,599,166 1,706,443
Fixed Asset Investments 42,539,014 438,010 982,225 43,959,249 43,010,563
Net Current Assets 5,115,981 107,282 153,035 5,376,298 2,958,805
Pension Liability 205,000 - 205,000 410,000 172,000
Total Net Assets 49,064,161 545,292 1,340,260 50,539,713 47,513,064
13.6 Charity Analysis of Net Funds
Expendable Restricted Unrestricted Total 2022
Endowment Funds Funds Total Funds Restated
£ £ £ £ £
Intangible Fixed Assets 15,000 - - 15,000 9,253
Tangible Fixed Assets 1,599,166 - - 1,599,166 1,706,443
Fixed Asset Investments 42,539,014 438,010 - 42,977,024 43,010,563
Net Current Assets 5,083,342 - - 5,083,342 2,958,805
Pension Liability 205,000 - - 205,000 172,000
Total Net Assets 49,031,522 438,010 - 49,469,532 47,513,064
**----- End of picture text -----**
## **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 2023 is deemed to be £2,092,363 (2022: £2,165,217). 70 ## **THE ROYAL AIR FORCE CENTRAL FUND** ## **Notes to the Financial Statements for the year-ended 31 December 2023** ## **Note 16 Prior year adjustment** During the year ended 31 December 2023 the value of the Charity's liability in relation to the legacy RAF Sports Board Superannuation scheme became determinable. Whilst this obligation always existed and was disclosed as a contingent liability, there was insufficient information to reliably measure the extent of the liability before this date. Consequently, the pension scheme liability had not previously been included in the balance sheet. As a result of becoming determinable the 2022 comparatives have been restated to take into account this prior year adjustment. The mpact of this adjustment means that total funds decreased by £172,000 as at 31 December 2022. ## **Sports** Following the merger in January 2024 of 35 RAFCF grant receiving Sports Associations within the Charity, the requirement for an adjustment of the grants given needed to be restated in Central Fund accounts to ensure we were aligned. These used to be recognised when the offer was conveyed and paid in the following year. ||**2023**|**2022**|**2021**| |---|---|---|---| |Income|47,642|113,762|-239,628| |Cost Increase/(Decrease)|52,060|-8,903|-1,024,664| ||99,702|104,859|-1,264,292| ## **Note 17 Pension Liability** The Charity participated in the RAF Sports Board superannuation scheme, a defined benefit pension scheme. The scheme's liabilities are shared 25:25:50 between RAF Sports ederation, RAF Central Fund and The Royal Air Force. The liability shown in the balance sheet therefore represents 25% of the total scheme liabilities. The scheme was bought out in 2024 for closure and the final buyout figure is £820,000 and Central Funds' share is £205,000. |Opening
Increase in Line with buyout value
Closing|**2023**
172,000
33,000
205,000| |---|---| ||**restated**| |---|---| |**2023**|**2022**| |**Amounts recognised in the statement of financial activities are as follows**|| |Current service cost
33,000|172,000| |Total
33,000|172,000| 71 **THE ROYAL AIR FORCE CENTRAL FUND** ## **Notes to the Financial Statements for the year-ended 31 December 2023** ## **Note 18 Subsidiary Entities** ## **18.1 RAF Central Fund Trading Limited** The results of the Fund's wholly owned subsidiary elements are within the consolidated SOFA as follows: |Trading Income
**Income**
**_Total Income_**
**Net Result of Subsidiary**
**Expenditure**
Trading Activities
**_Total Expenditure_**|**2023**
**2022**
**£**
**£**
164,860
171,829
**164,860**
**171,829**
132,221
156,175
**132,221**
**156,175**
**32,639**
**15,654**| |---|---| **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. ## **18.2 RAF Sports Federation** The results of the Fund's wholly owned subsidiary elements are within the consolidated SOFA as follows: |**Income from:**
Donations
Charitable activities
Other trading activities
Investments
**Expenditure on:**
Charitable activities
Net gain / (loss) on investment assets
Net income/(Expenditure)
**Pension liability**
Actuarial gains/(losses) on defined benefit pension schemes
**Total Income**
**Total expenditure**
**Net Movement in Funds**
**Funds brought forward**
**Funds carried forward**|**2023**
**2022**
**£**
**£**
113,702
112,408
338,527
406,075
1,652
2,342
46,820
45,753
**500,700**
566,578
577,845
769,916
**577,845**
769,916
-8,851
-201,636
**-85,996**
-404,974
-33,000
50,000
**-118,996**
-354,974
1,156,536
1,511,510
**1,037,540**
1,156,536| |---|---| **RAF Sports Federatio** n number :1168287 The provides a comprehensive financial management service, charity governance support and assurance, human resources guidance, income generation advice, support and communications services to 54 RAF ports ssociations. ## **Note 19- Outstanding Commitments** The Fund had no outstanding commitments as at 31 December 2023. (2022: £nil) 72 ## **THE ROYAL AIR FORCE CENTRAL FUND** ## **Notes to the Financial Statements for the year-ended 31 December 2023** ## **Note 20 Events after the end of the reporting period** Following the merger of The Royal Air Force Sports Federation with The Royal Air Force Central Fund in April 2023, on 1 January 2024 all assets and liabilities of The Royal Air Force Sports Federation were transferred to The Royal Air Force Central und and the will be closed. On the 1st January 2024 the also merged with 35 sports associations which have been dissolved. 73