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2022-09-30-accounts

REGISTERED COMPANY NUMBER: 09760575 (England and Wales) REGISTERED CHARITY NUMBER: 1165153

REPORT OF THE TRUSTEES AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 FOR

ROYAL NAVY RUGBY UNION

Gibson Whitter Chartered Accountants and Tax Advisers Larch House Parklands Business Park Denmead Hampshire PO7 6XP

ROYAL NAVY RUGBY UNION

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022

Page
Report of the Trustees 1 to 12
Independent Auditors Report 13 to 15
Statement of Financial Activities 16
Balance Sheet 17-18
Cash Flow Statement 19
Notes to the Cash Flow Statement 20
Notes to the Financial Statements 21-34

ROYAL NAVY RUGBY UNION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2022

The Trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 30 September 2022. The Trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

CHAIR'S OVERVIEW

This report covers the year to 30 September 2022.

This year saw the return of rugby in all forms and the RNRU certainly made the most of the opportunities that arose from all remaining pandemic restrictions being lifted. The community area contested both the Navy Cup and the Inverdale Competition and the hugely successful beach rugby competition in Weymouth witnessed record entries with over 25 teams taking part, and for the first time there was both competitive male and female leagues. The representative area also had a full programme which culminated with the Army v Navy fixtures and the Women’s Senior XV playing at Twickenham Stadium for the first time in history.

The return of the Inter-Service competition came with great relief as it meant a reinstatement of a muchneeded income stream from gate receipts. This income will allow the union to start to rebuild its financial reserve and invest more heavily into rugby related activity. Sponsorship is buoyant with most sponsors committing to longer term deals, which makes financial forecasting and planning somewhat easier in the shortterm. A replacement clothing supplier was appointed in the summer, and they will also be providing an online shop facility, selling RNRU merchandise on our behalf. This partnership will de-risk us from having large amounts of cash tied up in stock and the staff time required to process orders. Trustee succession planning is a sign of good governance and is key in ensuring the Board of Trustees has a diverse range of skills, experience and knowledge to enable it to continue to be highly effective. To support this, we welcome William Reid and Peter Reed OBE to the Board and look forward to benefitting from the immense experience they bring in their respective fields.

The Trustees have continued to review expenditure, and through good governance, diligence and planning continue to ensure the charity can appropriately respond to any financial challenges presented. Notwithstanding that, we believe that it remains appropriate to plan on a going concern basis.

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ROYAL NAVY RUGBY UNION

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 30 SEPTEMBER 2022

OBJECTIVES AND ACTIVITIES

Objectives and Aims

The explicit objectives endorsed by the RNRU support the over-riding aim to 'promote and foster' the game within the Royal Navy, and its local communities, as follows:

Achievements and Performance Against Objectives

A summary of the RNRU's achievements against our strategic plan as outlined in last year's Report and Accounts can be found in the table below.

We said that we would do

Deliver assured governance and regulation, with the financial strength to maintain and increase investment in the game to drive performance and community participation.

We achieved

All areas of governance and finance are still feeling the effects of COVID-19. The Army v Navy fixture did take place in 2022 however attendance was approximately 24,000 less than for the 2019 fixture. This has resulted in a third year of loss of income related to the fixture and means that yet again expenditure will have to be reduced to compensate for the loss of income. Our financial reserve has now been exhausted and plans are in place for it to be replenished over the next 2-4 financial years.

By the end of the 5 years we will have introduced Services rugby, at grass roots level, to 7000 more men and 700 more women whilst creating a player pathway from club level to the highest representative level.

Additionally, we aim to be the Services’ leading rugby team, across the Senior XV, U23 and Sevens sides by 2022, with the Women’s side achieving parity with at least the RAF.

We will simultaneously deliver and host the best rugby events, including the Commonwealth Nations Rugby Cup, and other competitions throughout the structured season.

Both targets were reviewed and due to the impact on all team sports as a result of deployments and a busier navy, no target figure was placed. We wanted to reach as many men and women as was practically possible at grass roots level to give them a taste of the game. When team sports do eventually equalise our targets will be reviewed.

Although the 2022 Inter-Service Rugby Competition did take place, results didn’t exactly go to plan for the U23s or the Senior Women. The Women had a very close encounter with the RAF(W) however the Army Women were far too strong. The Senior Men scored a victory against the RAF Men at Ealing and came up just short in a cracking display of rugby against the Army Men.

This year’s Navy Cup, Inverdale Challenge and the Marine Nationale fixtures did all go ahead and were enjoyed by all that participated in them.

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ROYAL NAVY RUGBY UNION

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 30 SEPTEMBER 2022

OBJECTIVES AND ACTIVITIES (continued)

Achievements and Performance Against Objectives (continued) We said that we would do We achieved

Wherever possible, as part of that growth path we will look for further opportunities to share financial benefits within the broader church of Services’ sport, with appropriate checks and balances in place to evidence how those benefits are used.

As for the previous reporting period, the overall financial position of the RNRU precluded making any grants to other sports associations, however this is something that will be rectified once our major income stream is back on track. Smaller annual donations were made to both United Services Portsmouth and Devonport Services Rugby Clubs.

Purpose of the RNRU

The Royal Navy Rugby Union has a long and distinguished history dating back to 1906. On its formation rugby was fairly embryonic, with ratings and other ranks not eligible to play. However, the Officers saw the games’ value to Naval Service ethos and after the RN were able to select from all their personnel in 1920 there was a burgeoning of service rugby clubs, including Devonport Services and United Services Portsmouth, formed to provide playing opportunities in RFU league structures. Whilst in the early years these latter clubs were restricted to the use of service personnel approximately 30 years ago membership was opened to the local civilian community, who now form a significant element of the club, providing a valuable opportunity for outreach to the local community through sport. The adult section of both clubs supports 3 senior sides and one Colts team plus a vibrant youth section from U7 to U16. In addition, Devonport Services maintain a Ladies Youth team. RN ships and units are also active and engage in matches around the globe whilst the Union supports five representative teams (Senior Men, Senior Women, U23, Veterans and Sevens) to provide the pinnacle of Navy sport. In the modern day the Union remains relevant, upholds the values of the Royal Navy in building partnerships with other navies around the world in support of RFU initiatives.

As both a registered charity and National Constituent Body of the Rugby Football Union, we are committed to promoting participation and enjoyment of rugby at all levels within the Naval Service. We are consolidating our position, having professionalised much of what we do, with success in the long running Inter Services Championship (particularly in the U23 area), and specifically the annual fixture against the Army at Twickenham, which now incorporates both Men’s and Women’s Senior Teams, remaining a central pillar of our strategy. At the same time we are developing our structures and facilities and investing in grass roots and community rugby, as this will provide the foundation upon which we can grow our representative teams. The provision of a Women’s Development side is providing increased opportunities for emerging players who otherwise would not be sufficiently proficient to break into the hitherto single female representative side. Elsewhere, the provision of coaching and refereeing courses is resulting in greater exposure to sport for all age groups.

Public Benefit

The charity exists to support the military efficiency of the Naval Service as a key component of the nation's Armed Forces and thereby to the defence of the nation. The Trustees have complied with the duty in Section 17 of the Charities Act 2011 and given due regard to the Charity Commission guidance on public benefit. In addition, the RNRU provides public benefit by enhancing and promoting military efficiency, strengthening the moral component of the Royal Navy's and Royal Marines' esprit de corps, which in turn brings tangible benefit to the public:

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ROYAL NAVY RUGBY UNION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2022

FINANCIAL REVIEW

Financial position

This is the sixth year of the new structure of the Charity; the charitable activities are managed by the RNRU and Navy Rugby Ltd (NRL), a totally owned subsidiary of the charity RNRU, operates the trading activities.

These accounts cover the 12-month period to the 30 September 2022. This is the fourth discrete 12-month period since the financial year (FY) end was moved to 30 September, in 2018.

Statement of Financial Activities (SOFA)

The Consolidated SOFA for the 12-month period ended 30 September 2022 reflects the return to rugby and in particular the main fund-raising event of the Army Navy matches at Twickenham. The income for 2022 was £1,362k, which was significantly higher than £198k generated in 2021. Expenditure also increased to £1,112k compared to £219k in 2021, as more activities happened once again. Overall, annual income was £250k more than expenditure, returning the RNRU back to income growth rather than consuming reserves.

The financial activities of the charity, the RNRU, shows income of £638k for 2022 compared with £121k for 2021 and £143k in 2020 (Note 2 to the Consolidated Financial Statements). Income is normally and primarily derived from the distribution from NRL trading activities and this year saw a leap in profit to £400k from £27k the previous year. Expenditure at £388k was higher than last year (£143k) with >95% of that expenditure attributable to charitable activities (Royal Navy Rugby and Community Rugby), as in previous years.

Balance Sheet

The consolidated group’s net assets increased by £250k from £298k on 30 September 2021 to £548k at 30 September 2022. The movement is reflected in net current assets with cash balances increasing by £268k due principally to income received in advance which is included in current liabilities plus funds held as custodian for Navy Sports Development (£49k as per Note 21).

The movement on the charity’s standalone balance sheet reflects that of the group noted above; only with current asset debtors much higher due to the much larger distribution not having moved across at this date.

On 30 September 2022 net assets of £548k were made up of unrestricted funds of £468k(£298k at 30 September 2021) and £80k (£nil at 30 September 2021) of designated funds (see note 23 for details).

Review of the Year

With the end of the pandemic restrictions all rugby resumed in full including the show-case event, the Army Navy Matches at Twickenham. For the first time the Women played straight after the Men on the Twickenham pitch. The playing of this game was massively significant considering that this is the main source of income for the Charity; even so, the effects of the pandemic were evident with a 5/8 capacity crowd compared to prepandemic sell-out crowds.

A significant proportion of the personnel costs continued to be covered by the Naval Service Sports Charity (NSSC), and the remainder of the grant was spent assisting with resuming playing rugby. All sponsors returned to support the Charity and we picked up a few new ones resulting in £142.5k income (up from £60k). Patron income remained constant at £18.5k but it’s relatively small in comparison to the other income. The RFU Constituent Body grant and Regional Development Officer funding increased slightly on the previous year. Overall, the current year’s cash inflow was ten times that of 2021/22 due to the resumption of the Army Navy Match.

Both Community Rugby and Representative rugby expenditure was significantly higher again upon resumption of playing rugby; all expenditure was in line with budget expectations. Representative rugby spend increased back to more normal levels and the RNRU teams attended the French Marine Nationale match, the Women toured South Africa and the RNRU hosted the Commonwealth Navies Rugby Cup (CNRC) tournament.

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ROYAL NAVY RUGBY UNION

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 30 SEPTEMBER 2022

FINANCIAL REVIEW (continued)

Overall, whilst drawing on reserves, the cashflow has been resilient to enable a whole season of rugby. What’s more, the cash reserves have now been refreshed by a successful AvN Match Day. There are now sufficient funds in reserve to support a full 2022/23 rugby season without the need for further grants or loans; the bounce back loan has been repaid and the Sports Lottery loan is budgeted for part repayment in 2023.

Going concern

The budget for 2022/23 was agreed in September 2022 at the Trustees’ Meeting. The budget was set as follows:

£
Income 474,502
Expenditure 472,018
Surplus 2,484

This is the first year in three to have a surplus budget and not rely on utilising the reserve, grants or loans. In addition, the budget includes a loan repayment of £20k (leaving a balance of £30k) and designated funds for CNRC of £45k (£20k more than budget), Tours £5k and most importantly a separate reserve of £110k (up from a budget of £50k); these cash amounts will be held in a different account. This means that the total cash resources of the charity at 30 Sep 23 (less the loan) will be cash of c.£90k and designated funds of £160k even before the next distribution from NRL.

The Trustee Board are optimistic that the Army Navy match will be able to be played again this year in front of a reasonable crowd at Twickenham in May 2023; the plan is for 2-tiers capacity of 60,000 rather than the whole stadium which is more realistic and reduces costs. If successful, an estimated £500k plus will be received as a distribution that will allow rugby to continue fully next year; it will also provide surplus funds to both repay the loan and allow a significant reserve to be saved for future events that would otherwise disrupt this rugby model.

So, based on cashflow forecasts over the next two years, both entities are expected to be able to fulfil their current ongoing financial commitments until at least September 2024.

The Trustee Board, based on the above, have therefore concluded that it remains appropriate to prepare these financial statements on the going concern basis.

Governance and Administration

The Trustee Board guided by the Investment Finance and Audit Committee (IFAC) approve the annual budget set by the Executive Committee. The accounting services for the RNRU and NRL (less salary and pensions) are provided in-house at HMS TEMERAIRE using our own finance officer and Xero accountancy software.

Risk

The Executive Committee, the IFAC and the Trustee Board consider financial risks. The key risk remains the hosting of a successful Army Navy match, as the primary bearer of all income streams. As clearly demonstrated in 2019-2021, the loss of this match and the associated revenues had a significant impact on the operation of the RNRU over those two years. The mitigating action taken during 2019-2021 to reduce all activities to a minimal level enabled the Charity to continue to operate whilst drawing on reserves. The Charity has drawn heavily on its reserves during this time but has also been generously supported by: its Sponsors; the RN RM Sports Lottery, towards salaries and tour; and the NSSC, who have provided both a loan and grant. In 2022 the Army v Navy match was once again successfully held at Twickenham although this was far from a maximum crowd as pre-pandemic. The Trustee Board, Executive Committee and the IFAC will continue to monitor this risk closely and will adapt the operating plans accordingly.

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ROYAL NAVY RUGBY UNION

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 30 SEPTEMBER 2022

FINANCIAL REVIEW (continued)

Investments

The RNRU has a single investment, £100k invested in the trading subsidiary NRL. A long-term investment policy is kept under review and could be re-established in the future if sufficient excess funds have been generated.

As a continued result of the financial and operating impact that COVID-19 has had on NRL, the Trustee Board have again considered whether the charity’s investment in NRL of £100k should be impaired at 30 September 2022. The trustees have reviewed the forecasts prepared by NRL and they remain optimistic that the Army Navy match will again be played at Twickenham in 2023 and ticket sales will be on a level to cover costs and provide an operating profit for financial year 23-24.

Investment Restrictions

The Trustee Board do not consider ethical investment restrictions to be appropriate or in conflict with the objectives of the RNRU.

Reserves Policy

The Trustee Board has a reserves policy to set aside sufficient free reserves to meet the needs of current beneficiaries, whilst remaining sustainable for future generations. The reserves should give sufficient comfort that the charity can pursue its objectives and smooth out any unexpected fluctuations in charitable expenditure or shortfalls in income. The Trustee Board agreed a new reserves policy in April 2018 based on free reserves that would cover the costs of a basic season’s rugby. The policy was amended in 2019 to have a minimum free reserves level of £300k and a maximum of £500k.

However, before 2020, free reserves were never true savings in the sense of being kept aside but were partially consumed over the financial year together with direct income and then replenished from the NRL distribution at the end of the year.

Over the past 3 years, including when the pandemic stopped all rugby (2020-2021), the reserves bolstered by other grants and loans ensured that the RNRU could continue operating as a going-concern. So, during this time the reserves have fulfilled the function they were intended for and allowed the RNRU to continue to operate; during this year ahead (FY22/23), we will start growing the reserves again plus designate funds for the next CNRC, overseas tours and build a true reserve for future pandemic type events.

The charity’s free reserves are calculated by taking total unrestricted funds and deducting designated reserves, investments held for the long term and operational tangible fixed assets. The calculation of free reserves at 30 September 2022 is shown in the table below:

30 Sep 19 30 Sep 20 30 Sep 21 30 Sep 22
£'000 £'000 £'000 £'000
Total unrestricted Funds 579 319 298 548
Less: Designated Fund for CNRC (32) 0 0 (20)
Less: Designated Fund for Overseas Tours (18) 0 0 0
Less: Designated Reserves(held separately) 0 0 0 (60)
Less: Longterm Investments (100) (100) (100) (100)
Less: Operational Tangible Fixed Assets (10) (7) (5) (3)
Free Reserves 419 212 193 365

The reserves policy has again not been adjusted as once sufficient income flows in then the Trustee Board will start to rebuild reserves whilst continuing to be mindful of ensuring that the charity fulfils its charitable objectives. In rebuilding these reserves, the trustees are also now looking to hold a minimum level equal to a year’s expenditure on Rugby throughout the year, given that Charity’s dependence on a single event for its annual income. This will start in FY 23/24 when a designated reserve of £110k will be set aside from free reserves. Recognising that having one year of designated reserves may not be sufficient, the trustees may also be determined to increase the level of reserves further to higher levels in the future.

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ROYAL NAVY RUGBY UNION

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 30 SEPTEMBER 2022

FINANCIAL REVIEW (continued)

Principal Risks and Uncertainties

The Trustees of the RNRU monitor the principal risks faced by the Charity via a risk matrix that is scrutinised by the IFAC and discussed by the Board at least annually. In the opinion of the Trustees, the Charity has established systems that, under normal circumstances, should allow the risks identified by them to be mitigated to acceptable levels.

The risk matrix identifies major risks to which the RNRU is exposed under the following headings: Strategic; Financial; and Operational. Controls have been identified to limit each of these risks. The top three risks and the mitigation for them are detailed in the table below. All are high impact risks and because of the continuing uncertainty generated by the covid-19 pandemic, two remain high impact despite the mitigation measures in place and the third is considered reduced to medium level.

Risk Mitigation
There is a risk that the Trading
Company proves ineffective due to
lack of income generation.		 4. Investigate NRL and Charity “insolvency” figures – i.e. minimum balance
required to enable winding up before becoming insolvent.
1. Review all expenditure to minimum essential spend including review of
3rdparty contracts.
2. Approach NSSC for grant to cover the cost of delivery of RNRU activity.
3. Approach Sports Lottery for a long-term loan to aid cash flow and
facilitate rugby activity.
5. Investigate NavySports Board appetite for furthergrants in next FY.
There is a risk that the Army/Navy
game
may
no
longer
be
at
Twickenham (RFU/Met Police do
not allow the match to be held at
Twickenham
or
it
is
not
cost
effective to hold the match there).		 1.
Contractual
arrangement
between
RFU,
A/N
Match
Committee,
Babcock (sponsor) reviewed in 2022, proposed 3+2 year contract to be in
place from 2023 with options for either party to withdraw annually. Decision
point for Babcock is Nov 22 if they want to continue beyond the 2023
fixture.
5. Maintain a proactive Single Service public perception.
6. Work with Met Police, RFU and Richmond Council to mitigate concerns
of all parties.
7. Review Reserves Policy/Investment Strategy in order that RNRU activity
could continue if our revenue was seriously impacted by changes to the A
v N match day (and associated revenues).
3. Maintain a firm grip/continued development of the Marketing Strategy for
the A v N such that we continue to draw the crowds and the general public
are aware of the fixture, the costs and why it is such good VfM.
4. Maintain a healthy and proactive relationship with Twickenham HQ to
keep the RNRU in their sights (for all the right reasons).
2. The RNRU should always retain at least one season running cost (circa
£300k) and Reserves Policy is to increase Reserves to £500k – to be
reviewed annually.
There is a risk that sponsors will
withdraw
all/most
sponsorship
financial/non-cash support.		 2. Attractive and rewarding sponsorship opportunities.
3. Contract Letters (who gets what) have been reissued – DoM.
5. Ability to encourage sponsors to commit to 3 yr contracts – ongoing.

6. Letter from RNRU President thanking Sponsors for their continued
support of the RNRU in these challenging times.
1. Maintain a strong communications link to demonstrate the value of the
relationship.
4. Clear parameters for return and maintain optimum number (12) and
minimum amount (£5K).

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ROYAL NAVY RUGBY UNION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2022

PLANS FOR THE FUTURE

The governance element of the charity continues on a solid footing, and the Union is now in the final year of its 5-year strategy (which is under review and will be reissued from year 1), aligned with the RFU’s overarching strategy for game development, it is determined that the head marks set out in the charity remain fit for purpose.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Organisational Structure

The RNRU is a regulatory body, which on behalf of the President, directs, controls, administers and promotes the sport of Rugby Football Union within the Royal Navy. The objectives of the RNRU are reviewed by the Trustees and specific targets and objectives, which are compatible with those laid down by the Rugby Football Union (RFU) as the governing body for the sport, are set.

The aim of the RNRU is to promote and foster the game of Rugby Union in the Royal Navy and its local communities in accordance with the Laws of the Game promulgated by World Rugby and the rules, regulations and bye laws issued by the RFU.

The governing body of the RNRU is the Board of Trustees, which comprises up to 8 members and meets twice a year to review charitable objectives, strategy, risk register and performance. Trustees are elected or appointed for a three-year term, and may, subject to Board approval, serve for further three-year terms. New appointee’s induction training is personalised to meet the requirements of the appointee. The President and Secretary attend all Board of Trustees meetings.

The Board is supported by an Investment, Finance and Audit Committee (IFAC) sub-committee, with specific terms of reference and functions delegated by the Board and with a Trustee as Chair, appointed by the Board. An independent member (qualified accountant) attends all meetings together with the Executive Committee Vice Chair.

The Board decide on the strategy of the Union, with implementation of strategy and day-to-day operational management of activity in support of its objectives delegated by the Board to the Executive Committee. The Executive separately, and independently, act as the delivery arm of NRL.

The Executive Committee consist of the following appointments:

Chair Treasurer Vice Chair Director of Marketing RFU Council Member Director of Communications Director of Rugby Project Officers (non-voting) Company Secretary & Director of Operations Director of Community Rugby Sports Development Officer (non-voting)

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ROYAL NAVY RUGBY UNION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Organisational Structure (continued)

The majority of RNRU officials are serving Royal Navy/Royal Marines personnel, who undertake the roles on a voluntary basis on top of their high-pressure military appointments. The exception is the RNRU Secretariat and Community Rugby team which are operated by 4 permanent paid members of staff; the RNRU Sports Development Officer is a full-time MOD Civil Servant and the Company Secretary, Business Manager, Finance Officer and Rugby Development Officer are funded by the charity. Due to the ongoing financial impact of Covid19, salary for the Company Secretary, Finance Officer and Rugby Development Officer are being underwritten by the NSSC. All vacancies within the RNRU are advertised on the RNRU website inviting volunteers, both serving and civilians, to be considered for selection; all Executive Committee appointments are re-appointed at the AGM.

Management and Administration

The day to day control and administration of the RNRU is delegated to the Chair of the Executive Committee. The Executive Committee are tasked with achieving the objectives set by the trustees in their current five-year strategic plans.

Volunteers and Related Parties

The Trustees all gave their services voluntarily and received no remuneration for their activities, other than travel and incidental expenses. The serving members of the Board undertake their RNRU duties as volunteers in addition to their normal line duties.

Navy Rugby Limited

Navy Rugby Limited (NRL) operates as a separate but wholly owned subsidiary of the Royal Navy Rugby Union (RNRU). It is a VAT registered company whose objective is to generate income for the RNRU through trading activities including, but not limited to, receipts from ticket sales to Navy Rugby games, the sale of merchandise associated with Navy Rugby and the support of RNRU sponsors. NRL has three directors: the shareholding director (a member of the Trustee Board of the RNRU), a managing director (the member of the RNRU Executive Committee responsible for Marketing) and an independent Chair. The RNRU Company Secretary and Treasurer also perform the appropriate professional duties for NRL, which has a separate bank account and operates as a separate entity in legal and financial terms from the RNRU. Established with a £100,000 share issue from which all trading activity is resourced, all its operating profits are donated to the RNRU on completion of its annual audit. The NRL Board of Directors meet at least twice a year and oversight is maintained on the RNRU Board of Trustees by inviting the Chair to report its activities at Trustee Board meetings. In addition, the managing director of NRL reports to the RNRU Trustee Board’s Investment, Finance and Audit sub-committee.

Governing Document

The RNRU is controlled by its governing document, its Memorandum and Articles of Association dated 3 September 2015, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

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ROYAL NAVY RUGBY UNION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2022

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company Number

09760575 (England and Wales)

Registered Charity Number

1165153

Registered Office

HMS Temeraire Burnaby Road Portsmouth Hampshire PO1 2HB

Patron

The Royal Navy Rugby Union is honoured to have had Her Majesty Queen Elizabeth II as our Patron

President

Admiral Sir Ben Key KCB CBE ADC

Trustees

The Trustees in this period were:

Rear Admiral M J Parr CB (Chair) Mr A Bujalski Mr M H Connolly Mr J M R Saunders Watson Mr J B Inverdale Resigned 2 August 2022 Mr W Reid Appointed 27 September 2022 Mr P Reed OBE Appointed 1 September 2022 Rear Admiral S M Moorhouse CBE Appointed 6 July 2022 Commander K Marlor Royal Navy Commodore R Readwin ADC Royal Navy Resigned 6 July 2022 Captain S E Oakley Royal Navy

Auditors

Gibson Whitter Chartered Accountants and Chartered Tax Advisers Larch House Parklands Business Park Denmead Hampshire PO7 6XP

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ROYAL NAVY RUGBY UNION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2022

REFERENCE AND ADMINISTRATIVE DETAILS (continued)

Legal Advisors

Wilsons Solicitors LLP Alexandra House St Johns Street Salisbury SP1 2SB

Bankers

National Westminster Bank PLC 130 Commercial Road Portsmouth Hampshire PO1 2EJ

ACKNOWLEDGEMENTS

The Board wish to place on record their gratitude to all those who have contributed to the on-going success of the RNRU. These are too numerous to mention in full and the list that follows is just a representative sample of our growing band of supporters.

Babcock International Group PLC ESS (part of the Compass Group UK) Rolls Royce Thales Qinetiq SAAB SA-Group MBDA BMT Canterbury of New Zealand Limited VX3 Accenture ThinkLogical Peter Cooper Motor Group MLS

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ROYAL NAVY RUGBY UNION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2022

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Royal Navy Rugby Union for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

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

In so far as the trustees are aware:

AUDITORS

The auditors, Gibson Whitter Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Approved by order of the board of trustees on ..….................... and signed on its behalf by:30 May 23

Rear Admiral M J Parr CB - Trustee

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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF ROYAL NAVY RUGBY UNION

Opinion

We have audited the financial statements of Royal Navy Rugby Union (the 'parent charitable company') and its subsidiary (the 'group') for the year ended 30 September 2022 which comprise the Consolidated Statement of Financial Activities, the consolidated Balance Sheet, the consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group 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 trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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.

Page 13

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF

ROYAL NAVY RUGBY UNION

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company 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 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 charitable company or to cease operations, or have no realistic alternative but to do so.

Our 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 a Report of the Independent Auditors 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 designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, for example, forgery, misrepresentations or through collusion.

Procedures performed by the audit team included:

Page 14

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF

ROYAL NAVY RUGBY UNION

There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. As in all of our audits we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the trustees that represented a risk of material misstatement due to fraud.

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

Use of our report

This report is made solely to the charitable 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 charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Gavin Whitter (Senior Statutory Auditor)

for and on behalf of Gibson Whitter Limited

Statutory Auditors Larch House Parklands Business Park Denmead Hampshire PO7 6XP

Date: ….......................

Page 15 ROYAL NAVY RUGBY UNION

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 SEPTEMBER 2022

Year
ended
30.9.22
Unrestricted
funds
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
99,463
Charitable activities
6
Royal Navy Rugby
94,951
Community Rugby
25,170
Other trading activities
4
1,142,258
Investment income
5
-
Other income
7
-
Total
1,361,842
EXPENDITURE ON
Raising funds
8
718,359
Charitable activities
9
Royal Navy Rugby
292,271
Community Rugby
101,094
Total
1,111,724
NET INCOME/(EXPENDITURE)
250,118
RECONCILIATION OF FUNDS
Total funds brought forward
297,671
TOTAL FUNDS CARRIED FORWARD
547,789		 Year
ended
30.9.21
Total
funds
£
22,101
-
43,235
122,450
-
9,886
197,672
90,278
67,197
61,994
219,469
(21,797)
319,468
297,671

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

The notes form part of the financial statements

Page 16 ROYAL NAVY RUGBY UNION

CONSOLIDATED BALANCE SHEET AT 30 SEPTEMBER 2022

Notes
FIXED ASSETS
Intangible assets
16
Tangible assets
17
Investments
18
CURRENT ASSETS
Stocks
19
Debtors
20
Cash at bank
CREDITORS
Amounts falling due within one year
21
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS
Amounts falling due after more than one year
22
NET ASSETS
FUNDS
23
Unrestricted funds
TOTAL FUNDS		 Group
30.9.22
£
6,963
3,348
-
10,311
-
108,725
631,613
740,338
(152,860)
587,478
597,789
(50,000)
547,789
547,789
547,789		 Group
30.9.21
£
10,444
4,610
-		 Charity
30.9.22
£
-
3,348
100,000
103,348
-
426,983
149,986
576,969
(82,529)
494,440
597,788
(50,000)
547,788
547,788
547,788		 Charity
30.9.21
£
-
4,610
100,000
15,054
24,762
80,250
363,612		 104,610
-
50,954
261,741
468,624
(95,405)		 312,695
(69,635)
373,219
388,273
(90,602)
297,671		 243,060
347,670
(50,000)
297,670
297,671 297,670
297,671 297,670

The notes form part of the financial statements

Page 17 ROYAL NAVY RUGBY UNION

BALANCE SHEET - CONTINUED AT 30 SEPTEMBER 2022

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

The financial statements were approved and authorised for issue by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:30 May 23

Rear Admiral M J Parr CB- Trustee

The notes form part of the financial statements

Page 18

ROYAL NAVY RUGBY UNION

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2022

Notes
Cash flows from operating activities:
1
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Purchase of intangible fixed assets
Purchase of tangible fixed assets
Interest received
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Movement of cash held as custodian
Interest paid
Loan repaid in year
Net cash provided by (used in) financing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the end of the reporting period
Cash generated from operations
Cash and cash equivalents at the beginning of the reporting
period		 Year
ended
30.9.22
£
269,575
269,575
-
-
-
-
49,330
(904)
(50,000)
(1,574)
-
268,001
363,612
631,613		 Year
ended
30.9.21
£
38,433
38,433
-
-
-
-
-
-
-
-
38,433
325,179
363,612

The notes form part of the financial statements

Page 19

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2022

1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

Adjustments for:
Depreciation and amortisation charges
Interest paid
Decrease in stocks
(Increase) in debtors
Increase in creditors
Net cash provided by operating activities
At 1.10.21
Net cash
Cash at bank and in hand
363,612
Debt
Debts falling due within one year
(9,398)
Debts falling due after one year
(90,602)
(100,000)
Total
263,612
ANALYSIS OF CHANGES IN NET DEBT
Net income/ (expenditure) for the reporting period (as per
the statement of financial activities)		 Year
ended
30.9.22
£
250,118
4,743
904
24,762
(28,475)
17,523		 Other
non-cash
changes
-
-
-
-
-		 Year
ended
30.9.21
£
(21,797)
5,486
-
17,270
(11,942)
49,416
269,575 38,433
Cash flow
268,001		 At 30.9.22
631,613
9,398
40,602		 -
(50,000)
50,000 (50,000)
318,001 581,613

2. ANALYSIS OF CHANGES IN NET DEBT

Page 20

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention with the exception of investments which are included at market value.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the charitable company and its subsidiary.

The financial statements of the subsidiary undertaking included within the consolidated figures are adjusted where appropriate, the conform to Group accounting policies.

Significant judgements and estimates

In preparing these financial statements, the trustee directors have made the following judgements:

Income

Voluntary income including donations, gifts and legacies and grants that provide core funding or are of a general nature are recognised where there is entitlement, the receipt is probable and the amount can be measured with sufficient reliability. Such income is only deferred when:

Income from activities to generate funds, such as sponsorship, merchandise sales, patrons scheme, Army v Navy match, Navy v RAF match and investment income are recognised on a receivable basis.

Income from charitable activities relates to Community Rugby grants and courses. Such income is only deferred when:

Page 21

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022

1. ACCOUNTING POLICIES- continued

Volunteers and donated services

The value of services provided by volunteers is not incorporated into these financial statements. Where goods or services are provided to the charity as a donation that would normally be purchased from suppliers, this contributions is included in the financial statements at an estimate based on the value of the contribution to the charity.

Expenditure

Expenditure is recognised when a liability is incurred. Contractual arrangements are recognised as goods or services are supplied.

Irrecoverable VAT

All resources expended are classified under activity headings that aggregate all costs related to the category. Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Intangible fixed asset

Intangible fixed assets includes websites and databases. Websites have been capitalised where they are capable of directly generating income. Websites and databases are amortised, using the straight line basis, over their estimated useful lives of three and five years respectively.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Player training equipment - 20% on cost Motor vehicles - 25% on reducing balance Medical Equipment - 20% on cost

Individual fixed assets costing £500 or more are capitalised at cost.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost is computed on the first in first out basis. Net realisable value is the estimated proceeds from the sale of stock less any future costs to be incurred.

Page 22

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 SEPTEMBER 2022

1. ACCOUNTING POLICIES - continued

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity.

Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

2. FINANCIAL ACTIVITIES OF THE CHARITY

The financial activities shown in the consolidated statement includes those of the Royal Navy Rugby Union and its wholly owed trading subsidiary Navy Rugby Limited.

A summary of the financial activities undertaken by the Royal Navy Rugby Union, is set out below:

Total income
Expenditure
Raising funds
Charitable - Royal Navy Rugby
Charitable - Community Rugby
Net income
Total funds brought forward
Total funds carried forward		 Year ended
30.9.22
£
637,929
(18,002)
(278,897)
(90,912)
250,118
297,670
547,788		 Year ended
30.9.21
£
121,231
(13,710)
(67,713)
(61,606)
(21,798)
319,468
297,670

Page 23

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUTED FOR THE YEAR ENDED 30 SEPTEMBER 2022

3. DONATIONS AND LEGACIES

RFU Constituent Body income
RN Sports Lottery - salary contributions
4.
Army v Navy match income
Merchandise sales
Sponsorship
International ticket sales
Patrons scheme income
Government grants
5.
Bank interest
INVESTMENT INCOME
OTHER TRADING ACTIVITIES		 Year ended
30.9.22
£
17,015
82,448
99,463
Year ended
30.9.22
£
893,486
24,280
142,500
63,507
18,485
-
1,142,258
Year ended
30.9.22
£
-		 Year ended
30.9.21
£
6,403
15,698
22,101
Year ended
30.9.21
£
14,506
27,600
60,000
524
18,570
1,250
122,450
Year ended
30.9.21
£
-

Page 24

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUTED FOR THE YEAR ENDED 30 SEPTEMBER 2022

6. INCOME FROM CHARITABLE ACTIVITIES

Year ended
30.9.22
Royal Navy
Rugby
£
Grants
81,653
Personal contributions
13,298
RFU - RDO contribution
-
94,951
NSSC
Babcock International re CNRC
RNRMC
Rugby Football Development
RN RM Sports Lottery
7.
Coronavirus Job Retention Scheme grants
Grants received, included in the above, are as follows:
OTHER INCOME		 Year ended
30.9.22
Community
Rugby
£
18,170
0
7,000		 Year ended
30.9.22
Total
activities
£
99,823
13,298
7,000
120,121		 Year ended
30.9.21
Total
activities
£
39,735
0
3,500
25,170 43,235
Year ended
30.9.22
£
43,000
17,500
2,000
2,000
35,323		 Year ended
30.9.21
£
22,000
-
-
-
17,735
99,823 39,735
Year ended
30.9.22
£
-		 Year ended
30.9.21
£
9,886

Page 25

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUTED FOR THE YEAR ENDED 30 SEPTEMBER 2022

8. RAISING FUNDS Other trading activities

Year ended
30.9.22
£
Merchandise purchases
24,805
Army v Navy match expenditure
563,633
Navy v RAF match expenditure
7,765
Marketing and hospitality
12,781
Patrons scheme costs
2,850
International ticket costs
74,890
Fulfilment and other trading costs
13,864
Support costs (see note 11)
17,771
718,359
Direct costs
(see note 10)
(see note 11)
£
£
Royal Navy Rugby
185,650
106,621
Community Rugby
47,783
53,311
233,433
159,932
DIRECT COSTS OF CHARITABLE ACTIVITIES
Year ended
30.9.22
£
Staff costs (see note 14)
35,275
First XV team costs
45,869
Mariners team costs
2,395
Women's team costs
2,572
Under 23 team costs
2,401
Sevens team costs
3,311
Refereeing costs
1,620
Marine Nationale
19,667
CNRC Costs
44,335
Foreign tours
63,480
Community Rugby expenditure
12,508
233,433
Support
costs
CHARITABLE ACTIVITIES COSTS		 Year ended
30.9.21
£
19,875
-
-
4,580
4,933
-
51,986
8,904
90,278
Totals
£
292,271
101,094
393,365
Year ended
30.9.21
£
34,965
10,784
-
38
2,343
613
-
-
-
-
318
49,061

9. CHARITABLE ACTIVITIES COSTS

10. DIRECT COSTS OF CHARITABLE ACTIVITIES

Page 26

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUTED

FOR THE YEAR ENDED 30 SEPTEMBER 2022

11. SUPPORT COSTS

Management
£
Other trading activities
17,347
Royal Navy Rugby
104,079
Community Rugby
52,040
173,466		 Governance
costs
£
424
2,542
1,271
4,237		 Totals
£
17,771
106,621
53,311
177,703
Activity Basis of allocation
Management Staff hours
Governance costs Staff hours

Support costs, included in the above, are as follows:

Page 27

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUTED FOR THE YEAR ENDED 30 SEPTEMBER 2022

11. SUPPORT COSTS- CONTINUED

Management

Wages (see note 14)
Pensions (see note 14)
Motor and travel expenses
General insurance
Telephone
Executive expenses
Director of Rugby expenses
Management accounts
Bank charges
Communications
Depreciation
Postage, stationery and other
costs
Social security (see note 14)		 Other
trading
activities
£
12,432
867
793
1,613
116
159
211
109
268
-
219
434
126
17,347		 Royal
Navy
Rugby
£
74,593
5,202
4,758
9,676
697
952
1,265
654
1,606
-
1,313
2,606
757
104,079		 Community
Rugby
£
37,297
2,601
2,379
4,838
348
476
632
327
803
-
657
1,303
379
52,040		 Total
activities
£
124,322
8,670
7,930
16,127
1,161
1,587
2,108
1,090
2,677
-
2,189
4,343
1,262
173,466
Year
ended
30.9.22		 Total
activities
£
43,919
2,535
2,759
14,451
932
1,643
2,404
-
2,416
3,000
2,042
8,074
2,004
Year
ended
30.9.21
86,179

Governance costs

Auditors remuneration
Independent examiner' fees
Legal and professional fees
Other governance costs
Governance costs		 Other
trading
activities
£
400
-
-
24
424		 Royal
Navy
Rugby
£
2,400
-
-
142
2,542		 Community
Rugby
£
1,200
-
-
71
1,271		 Total
activities
£
4,000
-
-
237
4,237
Year
ended
30.9.22		 Total
activities
£
-
2,220
515
120
Year
ended
30.9.21
2,855

Page 28

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUTED

FOR THE YEAR ENDED 30 SEPTEMBER 2022

12. NET INCOME/(EXPENDITURE)

Independent examination - RNRU
Auditors remuneration - RNRU
Amortisation intangible assets
Depreciation - owned assets		 -
4,000
1,262
3,481
Year
ended
30.9.22		 2,220
-
2,004
3,482
Year
ended
30.9.21

13. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 30 September 2022 nor for the period ended 30 September 2021.

Trustees' expenses

During the year two trustee was reimbursed expenses by the charity for travel, subsistence and training totalling £175 (30.9.21: two trustees £182).

14. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 £
155,111
11,001
10,085
176,197
Year
ended
30.9.22		 £
74,708
4,556
4,914
Year
ended
30.9.21
84,178

The average monthly number of employees during the year was as follows:

Charitable staff
Support staff		 3
2
5
Year
ended
30.9.22		 2
1
Year
ended
30.9.21
3

No employees received emoluments in excess of £60,000.

Page 29

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUTED

FOR THE YEAR ENDED 30 SEPTEMBER 2022

15. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

15. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Donations and legacies 22,101
Charitable activities
Royal Navy Rugby -
Community Rugby 43,235
Other trading activities 122,450
Investment income -
Other income 9,886
Total 197,672
EXPENDITURE ON
Raising funds 90,278
Charitable activities
Royal Navy Rugby 67,197
Community Rugby 61,994
Total 219,469
NET INCOME/(EXPENDITURE) (21,797)
Total funds brought forward 319,468
TOTAL FUNDS CARRIED FORWARD 297,671
16. INTANGIBLE FIXED ASSETS - GROUP AND CHARITY
Website
and database
£
COST
At 1 October 2021 27,080
Additions -
At 30 September 2022 27,080
AMORTISATION
At 1 October 2021 16,636
Charge for year 3,481
At 30 September 2022 20,117
NET BOOK VALUE
At 30 September 2022 6,963
At 30 September 2021 10,444

Page 30

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUTED FOR THE YEAR ENDED 30 SEPTEMBER 2022

17. TANGIBLE FIXED ASSETS - GROUP AND CHARITY

Player
training
equipment
£
COST
At 1 October 2021
14,974
Additions
-
Disposals
-
At 30 September 2022
14,974
DEPRECIATION
At 1 October 2021
14,974
Charge for year
-
Eliminated on disposal
-
At 30 September 2022
14,974
NET BOOK VALUE
At 30 September 2022
-
At 30 September 2021
-
FIXED ASSET INVESTMENTS - CHARITY ONLY
MARKET VALUE
At 1 October 2021 and 30 September 2022
NET BOOK VALUE
At 30 September 2022
At 30 September 2021		 Motor
vehicles
and cycles
£
14,895
-
-
14,895
11,609
821
-
12,430
2,465
3,286		 Medical
equipment
Totals
£
£
3,584
33,453
-
-
-
-
3,584
33,453
2,260
28,843
441
1,262
-
-
2,701
30,105
883
3,348
1,324
4,610
Share
in Group
undertakings
£
100,000
100,000
-		 Totals
£
33,453
-
-
33,453
28,843
1,262
-
30,105
3,348
4,610
100,000
-

18. FIXED ASSET INVESTMENTS - CHARITY ONLY

This represents 100,000 £1 shares in the charity's wholly owned subsidiary, Navy Rugby Limited (Company number: 10259113).

Page 31

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUTED FOR THE YEAR ENDED 30 SEPTEMBER 2022

19. STOCK

STOCK
Group Group Charity Charity
30.9.22 30.9.21 30.9.22 30.9.21
£ £ £ £
Merchandise stock - 24,762 - -

The stock was written down to nil during the year because the process for selling merchandise has changed and the stock brought forward is not compatible with the new process.

20. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade debtors
Other debtors		 Group
30.9.22
£
42,840
65,885
108,725		 Group
30.9.21
£
17,575
62,675
80,250		 Charity
30.9.22
£
17,500
409,483
426,983		 Charity
30.9.21
£
4,114
46,840
50,954

21. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank loans
Trade creditors
PAYE and national insurance
Other creditors
Funds held as custodian
Deferred income (see below)		 Group
30.9.22
£
-
7,665
3,879
12,367
49,330
79,619
152,860		 Group
30.9.21
£
9,398
3,905
-
5,177
-
76,925
95,405		 Charity
30.9.22
£
-
7,147
3,879
9,367
49,330
12,806
82,529		 Charity
30.9.21
£
-
3,703
-
10,127
-
55,805
69,635

Funds held as custodian for HMS Temeraire Sports Development Fund. This is represented by cash at bank.

Deferred income

Deferred income relates to sale of international tickets and grants relating to a future financial period.

Group
30.9.22
£
76,925
Amount released to incoming resources
(76,925)
Amount deferred in the period
79,619
Balance carried forward
79,619
Balance brought forward
Page 32		 Group
30.9.21
£
-
-
76,925
76,925		 Charity
30.9.22
£
55,805
(55,805)
12,806
12,806		 Charity
30.9.21
£
-
-
55,805
55,805

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUTED FOR THE YEAR ENDED 30 SEPTEMBER 2022

22. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Bank loans
Other loans		 Group
30.9.22
£
-
50,000
50,000		 Group
30.9.21
£
40,602
50,000
90,602		 Charity
30.9.22
£
-
50,000
50,000		 Charity
30.9.21
£
-
50,000
50,000

Bank loans above is in respect of a Bounce Back loan. This was repaid during the year. Other loans above is in respect of a loan from RN Sports Lottery which will only become repayable when the charity has sufficient cashflow to do so.

23. MOVEMENT IN FUNDS CHARITY ONLY

At 1.10.21
£
Unrestricted funds
General fund
297,670
CNRC fund
-
Reserves build up
-
297,670
TOTAL FUNDS
297,670
Unrestricted funds
General fund
TOTAL FUNDS
Net movement in funds, included in the above are as follows:		 Net
movement
in funds
£
250,118
-
-
250,118
250,118
Incoming
resources
£
637,929
637,929
637,929		 Transfer
between
funds
£
(80,000)
20,000
60,000
-
-
Resources
expended
£
(387,811)
(387,811)
(387,811)		 At 30.9.22
£
467,788
20,000
60,000
547,788
547,788
Movement
in funds
£
250,118
250,118
250,118

24. RELATED PARTY DISCLOSURES

There were no related party transactions for the period ended 30 September 2022 (30.09.21: None).

Page 33

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUTED FOR THE YEAR ENDED 30 SEPTEMBER 2022

25. ULTIMATE CONTROLLING PARTY

The charity is controlled by its board of trustees acting in concert.

26. SHARE CAPITAL AND LIABILITY OF MEMBERS

The charitable company is a company limited by guarantee and its members have undertaken to contribute to the assets of the company in the event of it being wound up such amounts as may be required not exceeding £1.

Page 34