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2023-09-30-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 2023 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 2023

Page
Report of the Trustees 1 to 13
Independent Auditors Report 14 to 16
Statement of Financial Activities 17
Balance Sheet 18-19
Cash Flow Statement 20
Notes to the Cash Flow Statement 21
Notes to the Financial Statements 22-34

ROYAL NAVY RUGBY UNION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2023

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 2023. 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 2023.

This year was the second full year of operating since the pandemic and for our Representative teams it was one of the most successful in recent times. This season produced another full programme of events which culminated in a emphatic win for the Senior Men’s team at the showcase Army v Navy fixture and with the Women’s Senior team playing at Twickenham Stadium for the second time and closing the gap on our InterService opponents. The income stream from a condensed two-tier capacity crowd at Twickenham has allowed the union to start to build up its financial reserve and invest more heavily into rugby related activity nevertheless, the ambition is to see the match return to a full stadium capacity event. The community area has continued to regain momentum with double the number of teams participating in the Navy Cup compared to last season. Unfortunately, other community competitions have been hampered by player availability due to operational commitments and the format of these competitions are now under review as a result. Sponsorship remains buoyant with most sponsors committing to longer term deals, which makes financial forecasting and planning somewhat easier in the short term. A replacement clothing supplier was appointed in the summer of last year, and they also provide an online shop facility, selling RNRU merchandise on our behalf. This partnership was established to 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. We welcomed two new trustees last year and have benefited significantly from the vast experience they have brought to the board. 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 2023

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 to some degree. The Army v Navy fixture took place again in 2023, but attendance was approximately 31,000 less than pre-pandemic levels. The current economic climate has also had a negative impact on ticket sales with 7,000 less tickets being sold than in 2022. Despite revenue being less than planned, the match day costs and stadium hire were lower than expected which generated a higher profit margin than in 2022 which was a significant achievement. Our financial reserves have been strengthened as a result and there are sufficient funds to support a full season of rugby in 2023/24.

Continue to reinvigorate community level rugby wherever Royal Navy personnel are serving around the globe.

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. There has been a noticeable increase in participation particularly across the Navy Cup this season with a 135% increase in the no. of teams participating which suggests Community rugby is recovering to pre pandemic levels.

Continue delivering activities that help to build greater strength in depth to ensure there are sufficient players of the required quality to enable us to be competitive at Inter-Service level competitions.

With both players and training support groups adopting a professional mindset and an increased number of athletes playing at the highest level, the Senior Men were virtually unbeaten in a season that culminated in a brilliant victory over the Army at Twickenham. Additionally, the Under 23 team regained their own Inter-Service trophy in Nov 2022 emphatic style with a record margin of victory over the Army.

Consolidate the major gains made in the Women’s game post a first appearance at Twickenham, a RNRU tour to South Africa and a UKAF tour to New Zealand;

The women achieved one of their best results against the Marine Nationale and had a very close encounter with the RAF. The team scored their first try since 2013 against the Army at Twickenham, which was a small improvement on previous years. The balance in possession and territory during the match highlights the progress that continues to be made as does the selection of 8 senior women for the UKAF squad this season.

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ROYAL NAVY RUGBY UNION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2023

OBJECTIVES AND ACTIVITIES (continued)

Achievements and Performance Against Objectives (continued)

We said that we would do

Continue to provide enhanced duty of care for protection for players at all levels;

We achieved

Player welfare remains a key priority within the RNRU and we have continued to provide an excellent level of medical provision for all players representing the Royal Navy. The RNRU has funded 5 personnel through the Pre-Hospital Immediate Care in Sport (PHICIS) Level 2 course to ensure that all fixtures have suitably qualified personnel who can provide immediate medical care at point of need. This includes a minimum of one qualified doctor and physio at all representative fixtures. The RNRU has invested in new medical equipment and all representative teams have a Trauma bag, defibrillator and spinal boards ; this is similar to the medical provision at level 3 fixtures. All representative players are mandated to undergo Headcase training to ensure that they are able to recognise the signs and symptoms of concussion. In the Community area we utilised RFU targeted funding for 10 individuals from Devonport Services RFC and United Services Portsmouth to attend a Rugby First Aid course, this was well received and ensured both our accredited clubs were able to support medically. In addition to the above, the Community budget was increased by £3k to support the Academy XV and Women's Development Squad with appropriate medical care during fixtures.

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 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.

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ROYAL NAVY RUGBY UNION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2023

Purpose of the RNRU continued

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 at 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:

FINANCIAL REVIEW

Financial position

The charitable activities are managed by the RNRU. 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 2023. This is the fifth discrete 12-month period since the financial year (FY) end was moved to 30 September, in 2018. It is also the second full year of operating and rugby since the pandemic.

Statement of Financial Activities (SOFA)

The Consolidated SOFA for the 12-month period ended 30 September 2023. The main fund-raising event remains the Army Navy matches at Twickenham. The income for 2023 was £1,385k, slightly higher than £1,362k generated in 2022. Expenditure slightly reduced to £1,101k compared to £1,112k in 2022, as rugby activities returned to normal levels. Overall, annual income was £284k more than expenditure, returning the RNRU back to income growth for a second year rather than consuming reserves.

The financial activities of the charity, the RNRU, shows slightly higher income of £642k for 2023 compared with £638k for 2022 (Note 2 to the Consolidated Financial Statements). Income is normally and primarily derived from the distribution from NRL trading activities and this year saw another increase in profit to £462k from £400k the previous year. Expenditure at £357k was also lower than last year (£388k) with 94% of that expenditure attributable to charitable activities (Royal Navy Rugby and Community Rugby), as in previous years. Overall, Net Income at £284k was higher than last year’s £250k.

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ROYAL NAVY RUGBY UNION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2023

Balance Sheet

The consolidated group’s net assets again increased by £284k from £548k on 30 September 2022 to £832k at 30 September 2023. The movement is reflected in net current assets with cash balances increasing by £279k due principally to income received in advance which is included in current liabilities plus funds held as custodian for Navy Sports Development (£40k as per Note 20).

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 2023 net assets of £832k were made up of unrestricted funds of £631k (£468k at 30 September 2022) and £201k (£80k at 30 September 2022) of designated funds (see note 21 for details).

Review of the Year

This was the second full rugby season since the pandemic including the show-case event, the Army Navy Matches at Twickenham. For the second time the Women played straight after the Men on the Twickenham pitch. The playing of this game at Twickenham remains as the most significant event and the main source of income for the Charity; even so, the effects since the pandemic are still evident with an effect on ticket sales resulting in only two of the three stadium tiers being used (and not at full capacity); compare this with sell-out crowds pre-pandemic.

A significant proportion of the personnel costs (78% for three of five posts) continued to be covered by the Naval Service Sports Charity (NSSC). All sponsors returned to support the Charity and we picked up a few new ones resulting in £156k income (up from £143k). 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 continue to offer guaranteed income. Overall, the current year’s cash inflow was slightly higher than that of 2022.

Both Community Rugby and Representative rugby expenditure was significantly higher again this year, excluding the previous year’s one-off events of international competition and an overseas tour; all expenditure was in line with budget expectations. Representative rugby expenditure increased again and the RNRU teams hosted the French Marine Nationale match. Community Rugby expenditure more than doubled to £31k.

Overall, cash reserves have now been refreshed for a second year, specifically by a successful AvN Match Day. The RNRU has again sufficient cash funds to support a full 2023/24 rugby season without the need for additional grants or loans; the Sports Lottery loan was partly repaid and is budgeted for full repayment over the next four years.

Going concern

The budget for 2023/24 was agreed in September 2023 at the Trustees’ Meeting. The budget was set as follows:

Income £538k
Expenditure £519k
Surplus £20k

Again, the RNRU will run a surplus budget and not rely on utilising the reserve, grants or loans. In addition, the budget includes a loan repayment of £10k (leaving a balance of £30k) and designated funds for CNRC of £25k (totalling £75k for the event in Sep/Oct 24), and most importantly adding £100k to the separate reserve which will total £211k; these cash amounts will be held in a different account. This means that the total cash resources of the charity at 30 Sep 24 (less the loan) will be cash of c.£160k and designated funds of £211k even before the next distribution from NRL.

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ROYAL NAVY RUGBY UNION

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 30 SEPTEMBER 2023

FINANCIAL REVIEW (continued)

The Trustee Board are optimistic that the Army Navy match will be played again this year at Twickenham in May 2024. Based on the experience of the last two years, the initial ticket plan is for 2-tiers, with capacity of 60,000 rather than the whole stadium (78,000). At this stage this is deemed a realistic forecast of attendance and helps controls costs. The aspiration is to see the match return to a full stadium capacity event. If successful, an estimated £450k will be received as a distribution that will allow rugby to continue fully next year; it will also provide surplus funds to allow a significant reserve to be saved again 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 2025.

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 2020 and 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 2020-2021 to reduce all activities to a minimal level enabled the Charity to continue to operate whilst drawing on reserves. The Charity drew heavily upon its reserves during this time but was also generously supported by: its Sponsors; the RN RM Sports Lottery towards salaries and a tour; and the NSSC, who have provided both a grant and a loan (now being repaid). In 2022 and 2023 the Army v Navy match was once again successfully held at Twickenham although this remains far from a maximum crowd as pre-pandemic. The Trustee Board, IFAC and Executive Committee will continue to monitor this risk closely and will adapt the operating plans accordingly.

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 annually considered whether the charity’s investment in NRL of £100k should be impaired at 30 September 2023. 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 2024 and ticket sales will be on a level to cover costs and provide an operating profit for financial year 24-25.

Investment Restrictions

The Trustee Board do not consider ethical investment restrictions to be appropriate or in conflict with the objectives of the RNRU. They believe this confirms with the updated guidance to CC14 provided by Charity Commission.

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ROYAL NAVY RUGBY UNION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2023

FINANCIAL REVIEW (continued)

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. The policy has been reviewed at least annually and the last review in Sep 23 moved towards an objective of having a free reserve of £500k held in a separate savings account; this has now been set up and currently holds £151k (£111k plus £40k loan); another £100k will be added by Apr 24.

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 2023 is shown in the table below:

30 Sep 21 30 Sep 22 30 Sep 23
£'000 £'000 £'000
Total unrestricted Funds 298 548 832
Less: Designated Fund for CNRC 0 (20) (50)
Less: Designated Fund for reserves build up 0 (60) (151)
Less: Longterm Investments (100) (100) (100)
Less: Operational Tangible Fixed Assets (5) (3) (2)
Free Reserves 193 365 529

The reserves policy has again not been adjusted as now that sufficient income is flowing in to the RNRU, the Trustee Board will continue 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 continue in FY 24/25 when another £100k will be designated to the reserve increasing it to £311k and keeping it set aside from free reserves. Recognising the experience of the last 5 years, and that one year of designated reserves may not be sufficient, the trustees are determined to increase the level of reserves further, in the future, on a prudent basis to mitigate the risks identified.

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 following the covid-19 pandemic, one remains high impact despite the mitigation measures in place. The second is considered reduced to medium level, and the third risk is a new risk that has been raised this year following lessons identified during the pandemic highlighting risk to the RNRU business model through income generation reliance on a single event.

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ROYAL NAVY RUGBY UNION

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 30 SEPTEMBER 2023

FINANCIAL REVIEW (continued)

Principal Risks and Uncertainties matrix

Risk Mitigation
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).		 5. Maintain a proactive Single Service public perception.
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).
8. Recommendations from Army Inspectorate report implemented.
1.
Contractual
arrangement
between
RFU,
A/N
Match
Committee,
Babcock (sponsor) under review at present (summer 2023). New contract
with RFU signed in 2023 for a 3 year term.
2. The RNRU should always retain at least one season running cost (circa
£235k) and Reserves Policy is to increase Reserves to £500k – to be
reviewed annually.
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).
6. Work with Met Police, RFU and Richmond Council to mitigate concerns
of all parties.
There is a risk that the Trading
Company proves ineffective due to
lack of income generation.		 2. NSSB for grant to cover the cost of delivery of RNRU activity.
1. Review all expenditure to minimum essential spend including review of
3rd party contracts.
3. Sports Lottery long-term loan to aid cash flow and facilitate rugby
activity.
4. NRL and Charity “insolvency” figures investigated– i.e. minimum
balance required to enable winding up before becoming insolvent.
5. Navy Sports Board appetite for further grants in next FY investigated.
There is nil appetite for further loans to RNRU.
There is a risk that the RNRU
business model is overly reliant on
one
major
income
stream
(revenue from annual AvN match
held at Twickenham).		 3. Reserves Policy to ensure sufficient capital is available to cover 1 – 2
years future running costs.
1. Alternative income streams to offset reliance on single event inc.
sponsors, patrons’ scheme, Navy Sports Board support, sponsorship,
merchandise sales.
2. Insurance to cover loss of income from cancellation of match. Does not
include force majeure.
4. Ensure we continue to work within the Charity Governance rules and
regulations.
5. Maximise all ticket sales opportunities and closely monitor costs and
ticket prices to ensure sufficient income is generated.

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ROYAL NAVY RUGBY UNION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2023

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 threeyear 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 are able to 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 Director of Community Rugby Company Secretary & Director of Operations Sports Development Officer (non-voting) Volunteers Manager

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ROYAL NAVY RUGBY UNION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2023

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 5 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 financial impact of Covid19, salary for the Company Secretary, Finance Officer and Rugby Development Officer were underwritten by the NSSC, however, as the Rugby Development Officer post was vacant from December 22 until September 23 no payments were made for this post during this period. 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 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 2023

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 Rear Admiral S M Moorhouse CBE Commander K Marlor Royal Navy Captain S E Oakley Royal Navy Mr M H Connolly Mr J M Saunders Watson Mr W Reid Mr P Reed OBE

Resigned 3 September 2023 Resigned 25 January 2023 Appointed 25 January 2023 Resigned 12 January 2024

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 2023

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 SA Group Rohde and Schwarz Qinetiq SAAB SA-Group MBDA BMT Activision VX3 Accenture ThinkLogical Peter Cooper Motor Group Palantir

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ROYAL NAVY RUGBY UNION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2023

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 14 June 2024 and signed on its behalf by:

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 2023 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 14

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:

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

Page 15

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF

ROYAL NAVY RUGBY UNION

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, 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 by, for example, forgery or intentional misrepresentations, or through collusion.

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: 17 June 2024

Page 16

ROYAL NAVY RUGBY UNION

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 SEPTEMBER 2023

Year
ended
30.9.23
Unrestricted
funds
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
124,564
Charitable activities
6
Royal Navy Rugby
8,796
Community Rugby
11,592
Other trading activities
4
1,239,036
Investment income
5
1,206
Total
1,385,194
EXPENDITURE ON
Raising funds
7
745,096
Charitable activities
8
Royal Navy Rugby
261,218
Community Rugby
94,660
Total
1,100,974
NET INCOME/(EXPENDITURE)
284,220
RECONCILIATION OF FUNDS
Total funds brought forward
547,789
TOTAL FUNDS CARRIED FORWARD
832,009		 Year
ended
30.9.22
Total
funds
£
99,463
94,951
25,170
1,142,258
-
1,361,842
718,359
292,271
101,094
1,111,724
250,118
297,671
547,789

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

The notes form part of the financial statements

Page 17

ROYAL NAVY RUGBY UNION

CONSOLIDATED BALANCE SHEET

AT 30 SEPTEMBER 2023

Notes
FIXED ASSETS
Intangible assets
15
Tangible assets
16
Investments
17
CURRENT ASSETS
Debtors
18
Cash at bank
CREDITORS
Amounts falling due within one year
19
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS
Amounts falling due after more than one year
20
NET ASSETS
FUNDS
21
Unrestricted funds
TOTAL FUNDS		 Group
30.9.23
£
3,481
2,291
-
5,772
34,694
911,098
945,792
(79,555)
866,237
872,009
(40,000)
832,009
832,009
832,009		 Group
30.9.22
£
6,963
3,348
-		 Charity
30.9.23
£
-
2,291
100,000
102,291
490,826
353,170
843,996
(74,279)
769,717
872,008
(40,000)
832,008
832,008
832,008		 Charity
30.9.22
£
-
3,348
100,000
10,311
108,725
631,613		 103,348
426,983
149,986
740,338
(152,860)		 576,969
(82,529)
587,478
597,789
(50,000)
547,789		 494,440
597,788
(50,000)
547,788
547,789 547,788
547,789 547,788

The notes form part of the financial statements Page 18

ROYAL NAVY RUGBY UNION

BALANCE SHEET - CONTINUED AT 30 SEPTEMBER 2023

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 14 June 2024 and were signed on its behalf by:

Rear Admiral M J Parr CB- Trustee

The notes form part of the financial statements

Page 19

ROYAL NAVY RUGBY UNION

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2023

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 in cash held as custodian
Interest paid
Loan repaid in year
Net cash provided by (used in) financing activities
Cash generated from operations
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the end of the reporting period
Cash and cash equivalents at the beginning of the reporting
period		 Year
ended
30.9.23
£
298,858
298,858
-
-
-
-
(9,373)
-
(10,000)
(19,373)
-
279,485
631,613
911,098		 Year
ended
30.9.22
£
269,575
269,575
-
-
-
-
49,330
(904)
(50,000)
(1,574)
-
268,001
363,612
631,613

The notes form part of the financial statements

Page 20

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2023

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
2.
At 1.10.22
Net cash
Cash at bank and in hand
631,613
Debt
Debts falling due within one year
-
Debts falling due after one year
(50,000)
(50,000)
Total
581,613
ANALYSIS OF CHANGES IN NET DEBT
Net income/ (expenditure) for the reporting period (as per
the statement of financial activities)		 Year
ended
30.9.23
£
284,220
4,539
-
-
74,031
(63,932)		 Other
non-cash
changes
-
-
-
-
-		 Year
ended
30.9.22
£
250,118
4,743
904
24,762
(28,475)
17,523
298,858 269,575
Cash flow
279,485		 At 30.9.23
911,098
-
10,000		 -
(40,000)
10,000 (40,000)
289,485 871,098

Page 21

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023

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 22

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023

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.

Taxation

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

Page 23

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 30 SEPTEMBER 2023

1. ACCOUNTING POLICIES - continued

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
30.9.23
£
641,750
(20,817)
(248,627)
(88,087)
284,219
547,788
832,007		 Year ended
30.9.22
£
637,929
(18,002)
(278,897)
(90,912)
250,118
297,670
547,788

Page 24

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUTED FOR THE YEAR ENDED 30 SEPTEMBER 2023

3. DONATIONS AND LEGACIES

RFU Constituent Body income
RN Sports Lottery - salary contributions
Donated goods and services		 Year ended
30.9.23
£
12,806
85,469
26,289
124,564		 Year ended
30.9.22
£
17,015
82,448
-
99,463

Donated goods and services represent kit given to the charity by the kit supplier. The costs of which is included in team costs.

4. OTHER TRADING ACTIVITIES

Army v Navy match income
Navy v RAF match income
Merchandise sales
Kit sales commission
Sponsorship
International ticket sales
Patrons scheme income
Bank interest
INVESTMENT INCOME		 Year ended
30.9.23
£
975,940
10,751
-
15,536
156,000
62,288
18,521
1,239,036
Year ended
30.9.23
£
1,206		 Year ended
30.9.22
£
893,486
-
24,280
-
142,500
63,507
18,485
1,142,258
Year ended
30.9.22
£
-

5. INVESTMENT INCOME

Page 25

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUTED FOR THE YEAR ENDED 30 SEPTEMBER 2023

6. INCOME FROM CHARITABLE ACTIVITIES

Year ended
30.9.23
Royal Navy
Rugby
£
Grants
-
Personal contributions
-
RFU - RDO contribution
-
RFU - Targeted delivery
8,796
8,796
NSSC
Babcock International re CNRC
RNRMC
Rugby Football Development
RN RM Sports Lottery
7.
Merchandise purchases
Army v Navy match expenditure
Navy v RAF match expenditure
Marketing and hospitality
Patrons scheme costs
International ticket costs
Fulfilment and other trading costs
Support costs (see note 10)
Grants received, included in the above, are as follows:
RAISING FUNDS
Other trading activities		 Year ended
30.9.23
Community
Rugby
£
4,592
-
7,000
-		 Year ended
30.9.23
Total
activities
£
4,592
-
7,000
8,796
20,388		 Year ended
30.9.22
Total
activities
£
99,823
13,298
7,000
-
11,592 120,121
Year ended
30.9.23
£
-
-
-
-
4,592		 Year ended
30.9.22
£
43,000
17,500
2,000
2,000
35,323
4,592 99,823
Year ended
30.9.23
£
-
595,593
15,142
17,013
4,965
80,874
13,467
18,042		 Year ended
30.9.22
£
24,805
563,633
7,765
12,781
2,850
74,890
13,864
17,771
745,096 718,359

Page 26

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUTED FOR THE YEAR ENDED 30 SEPTEMBER 2023

8. CHARITABLE ACTIVITIES COSTS

Direct costs
(see note 9)
(see note 10)
£
£
Royal Navy Rugby
152,963
108,255
Community Rugby
40,531
54,129
193,494
162,384
DIRECT COSTS OF CHARITABLE ACTIVITIES
Year ended
30.9.23
£
Staff costs (see note 13)
9,472
First XV team costs
110,318
Mariners team costs
5,069
Women's team costs
6,774
Under 23 team costs
5,908
Sevens team costs
5,374
Refereeing costs
5,705
Marine Nationale
13,815
CNRC Costs
-
Foreign tours
-
Community Rugby expenditure
31,059
193,494
Support
costs		 Totals
£
261,218
94,660
355,878
Year ended
30.9.22
£
35,275
45,869
2,395
2,572
2,401
3,311
1,620
19,667
44,335
63,480
12,508
233,433

9. DIRECT COSTS OF CHARITABLE ACTIVITIES

10. SUPPORT COSTS

Management
£
Other trading activities
17,441
Royal Navy Rugby
104,651
Community Rugby
52,327
174,419		 Governance
costs
£
601
3,604
1,802
6,007		 Totals
£
18,042
108,255
54,129
180,426

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 2023

10. SUPPORT COSTS- CONTINUED

Management

Wages (see note 13)
Pensions (see note 13)
Motor and travel expenses
General insurance
Telephone
Executive expenses
Director of Rugby expenses
Bank charges
Communications
Depreciation
Auditors remuneration
Independent examiner' fees
Legal and professional fees
Other governance costs
Postage, stationery and other
costs
Social security (see note 13)
Governance costs		 Other
trading
activities
£
12,384
714
867
1,288
119
55
360
194
444
202
708
106
17,441
Other
trading
activities
£
584
-
-
17
601		 Royal
Navy
Rugby
£
74,306
4,283
5,201
7,729
714
331
2,160
1,163
2,665
1,215
4,250
634
104,651
Royal
Navy
Rugby
£
3,504
-
-
100
3,604		 Community
Rugby
£
37,153
2,141
2,601
3,864
357
166
1,080
582
1,333
608
2,125
317
52,327
Community
Rugby
£
1,752
-
-
50
1,802		 Total
activities
£
123,843
7,138
8,669
12,881
1,190
552
3,600
1,939
4,442
2,025
7,083
1,057
174,419
Total
activities
£
5,840
-
-
167
6,007
Year
ended
30.9.23
Year
ended
30.9.23		 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
Year
ended
30.9.22
173,466
Total
activities
£
4,000
-
-
237
Year
ended
30.9.22
4,237

Page 28

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUTED

FOR THE YEAR ENDED 30 SEPTEMBER 2023

11. NET INCOME/(EXPENDITURE)

Auditors remuneration - RNRU
Amortisation intangible assets
Depreciation - owned assets		 5,840
1,057
3,482
Year
ended
30.9.23		 4,000
1,262
3,481
Year
ended
30.9.22

12. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 30 September 2023 nor for the period ended 30 September 2022.

Trustees' expenses

During the year one trustee was reimbursed expenses by the charity for travel, subsistence and training totalling £167 (30.9.22: two trustees £175).

13. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 £
131,925
7,962
9,235
149,122
Year
ended
30.9.23		 £
155,111
11,001
10,085
Year
ended
30.9.22
176,197

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

Charitable staff
Support staff		 2
2
4
Year
ended
30.9.23		 3
2
Year
ended
30.9.22
5

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 2023

14. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Donations and legacies 99,463
Charitable activities
Royal Navy Rugby 94,951
Community Rugby 25,170
Other trading activities 1,142,258
Investment income -
Total 1,361,842
EXPENDITURE ON
Raising funds 718,359
Charitable activities
Royal Navy Rugby 292,271
Community Rugby 101,094
Total 1,111,724
NET INCOME/(EXPENDITURE) 250,118
Total funds brought forward 297,671
TOTAL FUNDS CARRIED FORWARD 547,789
15. INTANGIBLE FIXED ASSETS - GROUP AND CHARITY
Website
and database
£
COST
At 1 October 2022 27,080
Additions -
At 30 September 2023 27,080
AMORTISATION
At 1 October 2022 20,117
Charge for year 3,482
At 30 September 2023 23,599
NET BOOK VALUE
At 30 September 2023 3,481
At 30 September 2022 6,963

Page 30

ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUTED FOR THE YEAR ENDED 30 SEPTEMBER 2023

16. TANGIBLE FIXED ASSETS - GROUP AND CHARITY

Player
training
equipment
£
COST
At 1 October 2022
14,974
Additions
-
Disposals
-
At 30 September 2023
14,974
DEPRECIATION
At 1 October 2022
14,974
Charge for year
-
Eliminated on disposal
-
At 30 September 2023
14,974
NET BOOK VALUE
At 30 September 2023
-
At 30 September 2022
-		 Motor
vehicles
and cycles
£
14,895
-
-
14,895
12,430
616
-
13,046
1,849
2,465		 Medical
equipment
£
3,584
-
-
3,584
2,701
441
-
3,142
442
883		 Totals
£
33,453
-
-
33,453
30,105
1,057
-
31,162
2,291
3,348

17. FIXED ASSET INVESTMENTS - CHARITY ONLY

FIXED ASSET INVESTMENTS - CHARITY ONLY
Share
in Group
undertakings
£
MARKET VALUE
At 1 October 2022 and 30 September 2023 100,000
NET BOOK VALUE
At 30 September 2023 100,000
At 30 September 2022 -

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 2023

18. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade debtors
Other debtors		 Group
30.9.23
£
7,646
27,048
34,694		 Group
30.9.22
£
42,840
65,885
108,725		 Charity
Charity
30.9.23
30.9.22
£
£
7,000
17,500
483,826
409,483
490,826
426,983

19. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
PAYE and national insurance
Other creditors
Funds held as custodian
Deferred income (see below)		 Group
30.9.23
£
-
7,500
11,012
39,957
21,086
79,555		 Group
30.9.22
£
7,665
3,879
12,367
49,330
79,619
152,860		 Charity
30.9.23
£
-
7,500
5,736
39,957
21,086
74,279		 Charity
30.9.22
£
7,147
3,879
9,367
49,330
12,806
82,529

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.

Amount released to incoming resources
Amount deferred in the period
Balance carried forward
Balance brought forward		 Group
30.9.23
£
79,619
(79,619)
21,086
21,086		 Group
30.9.22
£
76,925
(76,925)
79,619
79,619		 Charity
Charity
30.9.23
30.9.22
£
£
12,806
55,805
(12,806)
(55,805)
21,086
12,806
21,086
12,806

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ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUTED FOR THE YEAR ENDED 30 SEPTEMBER 2023

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

Group Group Charity Charity
30.9.23 30.9.22 30.9.23 30.9.22
£ £ £ £
Other loans 40,000 50,000 40,000 50,000

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.

21. MOVEMENT IN FUNDS CHARITY ONLY

At 1.10.22
£
Unrestricted funds
General fund
467,788
CNRC fund
20,000
Reserves build up
60,000
547,788
TOTAL FUNDS
547,788
Unrestricted funds
General fund
TOTAL FUNDS
Net movement in funds, included in the above are as follows:		 Net
movement
in funds
£
284,220
-
-
284,220
284,220
Incoming
resources
£
641,750
641,750
641,750		 Transfer
between
funds
£
(121,000)
30,000
91,000
-
-
Resources
expended
£
(357,530)
(357,530)
(357,530)		 At 30.9.23
£
631,008
50,000
151,000
832,008
832,008
Movement
in funds
£
284,220
284,220
284,220

22. RELATED PARTY DISCLOSURES

There were no related party transactions for the period ended 30 September 2023 (30.09.22: None).

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ROYAL NAVY RUGBY UNION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUTED FOR THE YEAR ENDED 30 SEPTEMBER 2023

23. ULTIMATE CONTROLLING PARTY

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

24. 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