THE ROYAL AIR FORCE CHARITABLE TRUST CONSOLIDATED REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 Charlty NUm￿r 1176054 CIO number CE012521 THE ROYAL AIR FORCE CHARITABLE TRUST CONTENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 coi¥rENTS PAGES off￿rS and professKThl thiseys Trustees. Annual Report 3-11 Independent Audilorfs ReKX)rt lo the T￿￿teeS 12-15 Consolidated Statement of Fin￿181 Actsvibes 16 Charity Statemenl of Finan(ial Acfivibos 17 Consolidated Balance Sheet 18 Charity Balance Sheel 19 Consolidated Statement of Cash Flows Notes to the finanrAal statemerts 21- 43 Page 1 THE ROYAL AIR FORCE CHARrrABLE TRUST OFFICERS AND PROFESSIONAL ADVISERS FOR THE YEAR ENDED 30 SEPTEMBER 2021 Reglstsrod Charlty Namo.. Royal F￿(* Ch*ilable Trnst Charlty No". 1176054 Company No". CE012521 Governing Document: CIO Articles and M¢m￿￿dUm of AssLxIai￿￿ 1 Docember 2017 Trustees: Air Marshal Philip Osbom CBE Mr Sterthen Barrett (resigned 15 July 20211 Mr lan Beresford MBE FRAeS CEng FIOD CDir Mr Peler Brown MBE Bsc Mrs Fel￿ty Chadwick-Hisled BA MSC Mr Raj Mo¢Jy MA FIA Mr Stephen okjr￿￿ {8pw¥nted 16 September 20211 Air Commodcfe Andy Sudk)w MBE Bsc FCMI Iresign&J 16 Seplember 20211 Lady {Delia} TIKKnt(xi LLB Barrister-8t-Law Lady {Kale) Wigslon LLB BA Air Marshal Sir yO￿g KBE CB FREng Trust Se¢retsry. Gr(rtJp Captsin Jusline mort￿ OBE BA MA FCIPD Prlnclpal Offico: Dougkgs Bader H￿Jse Horcotl Hill Fairford Glwc8stersh*e GL74RB Indepond•nt Audllor. Crowe U.K. LLP 4th Floor Sl James House St James Square Cheltenham Gk)ucEslershire GL50 3PR Bankors: BardarJ B8rA( Pk Britannia WarehtyJse The Docks GlcAJcester Gltyjcestershire GL12YJ Stslicitorn: Charfes Russell LLP &10 New Fetter Lane Londc EC4A 1RS Page 2 THE ROYAL AIR FORCE CHARrrABLE TRUST TRUSTEES, ANNUAL REPORT THE YEAR ENDED 30 SEPTEMBER 2021 Introductlon The Trustees present the consolidated grwpfinancial stsI￿nentS forThe Royal Air Force Charitable Trust (RAFCTI f(￿ the 12 months to 30 September 2021 vthich incorptyale the results ofthe Twst's subsKliaries, The Royal Air Force Charitsble Trust Ent￿wIseS Limited {RAFCTEI and Scampton Airshow Limrted ISALI. for the year ended 30 September 2021. the last repotbng perbod Truslees made the deCA$￿rI to alter the financial year end in order lo alwjn m￿e effeclNely the cperational year. As a resuh of this shortenod reporting per￿￿. the c4Jmparative figures are ￿1 directy comparable. Rafernne• and administrative details Reference and ￿lmInIStrative d&taib are shown ￿ th6 schèdule of officws and professional 8dvls8rs on pag8 1. The Trustees The Trustees who served during the period upto thefinancial statemerts Nbpre signed are asfolk)w8". r Marshal Philip Osbom CBE Mr Stephen Barrerf (resigned 15 July 2021) Mr18n Beresford MBE FRAeS CEng FIOD CO Mr Peter Brown MBE Bsc Mrs Felicity ChaiJvAck-HistwJ BA Msc Mr Raj Mody MA FIA Mr Stephen Oldfield {fr(Mn 16 Seplember 2021) r Commodore An(ly Sudtow MBE Bsc FCMI (resigned 16 septeM￿r 2021) Lady IDelia} Thomton LLB Bwri8tW-at-Law Lady (Kate) W￿StOn LLB BA Alr Marshal Sir Julian Young KBE CB FREng STRUCTURE. GOVERNANCE AND MANAGEMENT Hl$tory and charitable objectives The Tru51 Was estsblished in 1950 in England and Wa￿. wlh a gr8nl of£30,OOOfrom the then Council, now Ministry of Defen¢8, to promote. wesentor co-Lyrale in the Organisatit￿ ofairpageants and displays, in order to promote the recwthent and efficiency of the Roydl Air Force. The original Trusl Deed stsl8S thal proceeds of such air shows may be used lo further the aims of the charity. or for any other charitable purpose that will benefit past or present Membe￿ (rf the Royal Force. The Trust prO￿ded finance and admink8tralNe Sup[￿rtfOr a number of air shcfi￿ hekl al various locat*)ns, during the period 1950 to 1987, and donated income to the Royal Air Force Benevolent Fund fihe Fu￿) fcK the benefit of serwng and former M￿berS ol the Royal Air For￿. The Trust remained mostly inactive ring the peficmy 1988 to 1993. as the Fund had fomied a trading subskJiary. The Royal Air Force Benevolent Fund Enterpris&8 {Ihe trading compann. to undertake the twimary air shcAv acbvity. The Charity Commission 8pproved a revBed Scheme of Admini8tration. wdening the pemitted activities, Jl retainiThJ the Or￿1ftaI objects of the Trust. on 18 February 1994. Fdkmng this. the Trustees were able lo take the leading role in financing the airslK)W activity of the Irading company. which donatad profits lo the Trust. Following the com of 8 governanco review in 2CNM. a dee4SiLW W8s tsken lo atter the relaltonship balween the Fund. its tradiro Company, and the TrusL In January 2005. wrth the Supp￿ of the Charity Commission, RAF. the Fund and MOD. the Twst was renamed 'The Royal ForcÉ Charitable Trust.. harity number {210848}. The Trust then assumed ownership of the Irading company from the Fund and the Trusvs Deed was amended lo reflect this thange. At the same Ilm8. tt was d8cided to aller the name of the Irading company lo'Th8 Royal Air Force Charilable Trust EnterpTiSes' IRAFCTE). Page13 THE ROYAL AIR FORCE CHARrrABLE TRUST TRUSTEES. ANNUAL REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2021 On 1 March 2018. the former Trust {Charity Number 210848) was inwraled by way of 8 transfer ofthe assets and liabililies of the charity to a charilable Ir￿rpOrated organisatv)n (CIO) {charity number 1176054 & CE012521). The fomiw Trust remains in exIs￿ce lo ensure that any legaues Ihal may be ￿ft io th& Trust ￿ not k)sl; a 'uniting direction. was completed with the Charity C(Mnmtssw so that the Tnjst and the CIO are treated as a single charily fcf reportirwj and acc￿nting purp)ses. Govgrnan The Trustees are responsib￿ for the governan￿ of the TnJst. The day to day running of the Trust is delegated to the DirectOT of the TrusL Trustees nomiallymeet in fomial session 4 bmes calendar year and can also hold upto 2joint meetings wilh the Board of Directors of RAFCTE and SAL. However. due to the effect of COVID-19 tx) the d)8rity and the subsidiary trading ccffipanrfs operations. Ihere has been an increase to Truste8 meetings Ihroughoul the reporting perK)d. Additionally. the maiLYity of these meeb.ngs were held remolety in accordance wlh govemmenl guidance. The majorily of Trust alknin1strati￿ acliwly is condLKled eleC1r(m￿l1y. inckjding ts Cir￿lation of policy d￿UmentS. the approval of applicaliorts f￿ grants arKI various other di$￿$S1on5. A matrix of Trustee competences is mainlained and mapped to Tnjsl bu￿ne$S to ensure an adequate balance of skills is maintained wlhin the Trustee trM)dy. Tnjstees, backgrounds include irxiustry. law. cunmerce. finance. risk. and charity govemance, as well as ser¥￿e in Ihe Royal fvir Force. New Trustees are rectuiled through a number of avenues". through informal neiths of current Trustees and the Royal Force and ihrough more form81 retyuitment methods using advertisements arKI websiie5 and recruitment agencie5. The full rf)ard approves new Trusiee apwntments. New Trustees undergo an induct￿￿ process and undertake basic training package. Trustees maintain their currency through charity briefing updales and serve maximum of 2 ternis of 4 years. A str8tegy is in pbace to e￿$￿e timety a￿1 approprk?te repLrycements wth rèlevant skill sets. Rèmuneratlon RAFCTE staff pay is ￿Sidered each year by Ihe Companls Remuneration Gjmmittee and approved by the Commillee, whilst Company Director's paylremuneratKM is recommended bythe RAFCTE Boards and ratifieij by the Truslees. The Tnjslees set the pay of the Trust ern￿OYees based on equivalent crileria. RAFCT staff pay {including Key Management Perscmel) is berthMa￿ed against similar charities and is approved by the Board of Tntstees. Charity Governance Cod& The Charity Govem8n¢e Code vras reNie*Ed by the T￿￿teeS during the year. Govemance is kèpt ￿l￿Or constant reviewand poI￿leS f(* aL¥Jil, risk. ￿vernance. and grantcommiliees were all updated. The Board of Trustees continued to lead significant worl( lo im ￿ement a new Strategy for the Group and a Fuluro Desired Stst8 that sets the strategic intent for the next 5 years. Funthaising The RAFCT had no fundraising activities requlrlng discbsure under S162A of the Chartiies Act 2011. The Charlty does not (loor-tcthr fundraise or proactivdy seek to fundraise other than through their websrte and through lis key evenls tsjt is grateful of donations that are received each year. The Charity th)es not have a fundraising (Jepartment. Pa8e14 THE ROYAL AIR FORCE CHAR￿ABLE TRUST TRUSTEES. ANNUAL REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2021 OBJECTIVES AND ACTivrriES UPDATE As part of an orgjing strategrc review. Tn￿teeS have rev￿Wed the stated miSSK￿ lo 'Promole. Supp(xt & Encourage. and after￿SU1[ation with key partners thal include the RAF. RAF charilies and bener￿larieS. the Board of Tfustees agreed that a refinement of the cJJrrenl ct¥ecis were r￿CeSSary lo mc#Yemise and keep RAFCT relevant. The Charity has always had as a keyelement of ils work lo promote aviation-related education. particularfy of young people. and thereby to promote re¢ruitinenl to the Royal Force. Under the Ch8rity's prOp￿d FNe-Year Strategy this wll becfjme even m¢ye wominent in the work ofthe Charity. In the light of the establishment of UK Sp8ce Command in April 2021, the Charrty also intends to promote interest bn and lo educat6 young peo￿6 aLKNJI space ¢werations ￿ a focus on the future. The proposed new wording of the objects {see Plans for Fulure Periods page 101 reflects more d8ady the educational work of the Charity and the work to be done lo inspire wung people to fu￿1 their KM)t&ntial in air and space and as members of the *ider communty. Additionally. the obiects Cont￿Ue lo comp￿rnent Ihe WO￿ undertaken by th8 other RAF Charities suth as the RAF Benevolent Fund. the RAF Central Fund. the FiAF Ass0ual￿n and the RAF Museum. Truslees have reiterated their belief that the delivery of their currenl. and proposed 0tr4ectives is principally achieved through the staging of the Royal Intemational Air Tatioo IRIAT) and other airshows. however. Trustees are ussed on widening the ￿tential scope of future opwluntlies both the cc¥nmercial 8rm arml also fundrdising activities. ThrO￿hOut the last year. the Charity has mainlained the pr5ncApal awards funded by the Trust. and with, on oc¢asKJn, third parties including the Royal Air Force Flyng Clubs. Assouation {RAFFCA), Royal Air Fcwce STEM organisalN)n, ihe Ark￿￿h1 Tntsl, Primary Engineer and the Air Cadet OrgantsalK)n. Due to the impact of COVIL>19 Trustees have been reslricled in bwng fuuy able to meet their otiectives with the cancellation of RIAT 20 and RIAT 21 and the limilwj opportunity lo Im￿ement grants during nalK)nal lockdowns and its associated effects. However. Trustees were able lo aulhorise a number of strategi grants and were able to conlinue to oversee the Trusl's governan￿ and financial arrangemenls, working Closely vAlh Ihe RAF. the FiAF family of tharities. ￿1r current partners. and the Cadet Organisalion to ensure that Trust grants 8nd 8Ctiwlies were able, ￿ere rx)ssible, lo be ¢Jelivered to maximum effect. PUBLIC BENEF By Its support recrultment to the RAF, th8 Trust u)ntributes towards the sustsinmont of the SeNSce. FurthemiLYe. the grants awaTded by Ihe Trust lo promote the eff￿￿nCY of the Royal Air Fc*ce have a positive effect cm the military effectiveness of the UK$ air power. The Trust's work lo promote an understanding of anil interesl in a￿lation arKI STEM subjects supports the national eMp￿￿ent base. The Royal Inlemational Air Tatt￿ is a Ma1￿ showcase frx Ihe Royal Air Fr￿ and the considerable international alleThJance provides a swJnificanl OFP)rtunity for UK Defence Diplomacy and influence lo be reinforced. Having Considered the Chariiy C¢ynmission guidance on public b&neffil, the Twstees b&lieve that there is direct publ￿ benefit derrved fr(￿ the *Y)rk of the Roy81 Air Force Charitabbe Trust in the suslainment and effectiveness of the Roydl Air ForcE. vthich constitute5 a Sign￿￿ThI eSement of the defence of the Realm. AddIti￿allY. a number of young people are provided with an OPFQrtunity to succeed by the giwng of flying scho18rshbPS, engineering s¢￿arShipS and grants that offer the ability to learn 8t)oul and progress in awalion arKI engineering. The pro￿Sed amendmen15 to the Charities objectives will reinforce the public benefit. The Trustees omfirm they have c4Jnsidered Section 17 of the Charities Act 2011 tr) have due regard to the Charity Commission's guidan￿ on public benefiL The mlsslonofthe RoW￿r FNcetharitaE4eTrwti5toPROMOIE thpRoW hir Ft*t& ￿SUPPoRTI1$peQP￿ntr11a￿l intothÈfvtwtandto ENCOUKIGE 4lf4nkndeénessandthea¥1atirffj-rets￿ edlYat￿ Ol￿V￿pEo￿le. Sc*ht*, Tethnolo and MatI￿rna￿ Page15 THE ROYAL AIR FORCE CHARtfABLE TRUST TRUSTEES. ANNUAL REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2021 STRATEGIC REPORT ACHIEVEMENTS AND PERFORMANCE The Trust made grants totslling £171.72212020: £73.554}. however, due lo the inability of some grants to proceed bttause COVID-19 Condi￿nS prohibited their use, a number of grants both granted in year and in the previous financial year were retumed to RAFCT resulbng in a FK)sth cr8df( posili¢M lotaling 1£27,1861. Thls was ￿￿lerS￿ndabIY a Muc*￿redL￿ed lotal VA￿ compared to historical grant canmitrnents. AM grant flying 8cliMty ¢ontinued to be suspended duriry this time ak)ng with all Air Cadet AT activity and fac&1 face a¢tiwtycancelW. HOw￿er. lfv{￿gh k￿kdO￿￿ some of the Tn￿t'S principal grants proved thelrwc￿th. Desplte the reduced grant funding in 2021, Snvestsnent in STEM remained a keyfocus forthe Twst building on its work wilh young peop18 through its sleadysupport of the RAF Ali Cadets and the RAF STEM T8am. knong the S￿￿$s[u1 collatuatM)ns betsveen RAFCT arKI the RAPS Youlh & STEM Team is the ioinl sponsorship of the Scwls, stsged Air Activitses badge. Launched at RAF Cosford in 2019. and due to njn for an initial period of three years, thi8 partnership has proved hugely su￿¢s$fUl in developing new and excitiThJ STEM-fLKussed resources. actiwt￿s and events thal enat4e all Scwl sections, from Beavers to ExplO￿r Scouts, to eX￿Ore tho secrets and sc4ence offlight. Over 60.000 badges were aw8r¢Jed in 2021 and the Scout organisaiion have toen so impressed wlh qualrty of the cmline resour￿ created that they have given a fourth year of stK)nsorship al no extra charge. In 2021. discu$sK)n$ with cMJr p8rtners at￿rt more people couhj be engaged in STEM activities both in th6 buikl up lo. and during RIAT. led to the creation and lundlng of the Road to RIAT Compelltion involving 200 schools fr(fft th8 isLqnds of ScotL4nd to Ihe tip of C<)mwall. Funded by RAFCT arHJ delivered by our partner5 in sch¢x)Is, tho competition ryeatos enlries which will bejudged by an expert panel and the regional wnners will compete in a grand final competitim al RIAT in July 2022. The STEM days and ¢omp8titions are aerospa￿ arKY space chaI￿nge$. grving the primary S{4￿1 aged students chance to discover how gliders roc*els WOTk. and to be inspired irbto leaming more. As the country bègan lo open up after the series of k￿kdO￿Tr$. RAFCT suprAKted Royal Air Force Air Cadels as they swapped thwr online leaming for hiking and expbring. reinvigorating squadrons and giving some the chance to gain Duke of Edinburgh's Awar(Is. TeamN%th, planning, and navigation were amongst some of the useful skills kamed and well as a much-needed experienee for many young peorde. Amongst these expeditions. 12 cadets fr(Mn L(xYbn went dimbing. trekking and canr*ing in the Lake District. These young people were chosen by Ih&r Lbnit to give them a trKeak away from a challenging time al home, such as helping younger siblyw wth sd)00￿￿￿k wknile parents Vhyked al IK)me. Page16 THE ROYAL AIR FORCE CHARITABLE TRUST TRUSTEES. ANNUAL REPORT FOR THE YEAR ENDED 30 SEPTEM8ER 2021 GRATrffS Sir Mike Kn" ht Pilot SchoL8rshi Scheme 2020 Ul sses Trusl 2650 WirKIEster to Aberdove Paul Bowen Award Lknivers Air uadron Adbentwous Trair Scouts Air Acttwties bad onsorshi ear3of3 Junior Ranks Pilot SckK)larshi Scheme 2021 Junior Ranks Pilot Sch)larshi Scheme 2021 Junior Off￿er$ Pikst Sch)larshi sC￿me 2021 Junior Officers Pik)t Sthlarsli Sthme 2021 JRPSS To sche￿ 2021 JRPSS To 2021 sses Trust 2734 F12AC W8St Coast Scotla￿1 ses Tr￿$1 2734 PKJAC West Coast ScotlaTr ses tr￿t 2739 B&G W H. hlarnjs ScotlaTr sses Trust 2739 B&G W Na￿lS ScA)tlarKI Arkwri ineeri sc￿)IarS1￿ s sses Trust 2751 Lo benton Lake Dist￿1 sses Tr￿t 2767 PKJAC West CA)asl saili sses Trust 2775 452 FkJrrtF*¥ch Lakes Small ice Tr￿1 RIAT STEM tition ir Cadets -£93 808.00 -£1.714.00 -£25.000.00 £40.000.00 £49 760.00 -£49 760.00 -£9,330.00 £13.250.00 -£13 250.00 -£2 200.00 £3,846.(K) -£3.846.00 £11 WO.00 £4,719.CM) £2.292.(KJ £624.(K) £34 701.00 £171 722.00 -£198 908.00 -£27,186.00 ROYAL AIR FORCE CHARThABLE TRUST ENTERPRISES- ROYAL INTERNATIONAL AIR TATTOO RIAT 21 was due to have been the 501h AnniVe￿ary of the Air Tattw. However. after the Government announced a third nati(￿1 COVltk19 lockdovm on 6 January 21 the RAFCTE Board took the vitiw 81 that b'me that an early cancellalKJn was necessary lo aN￿ld the potential risk to public health and the risk of financial exFM)sure. Trustees ￿tre fully supp¢ylive of this d80s1￿. Followng the RIAT 21 cancellation. the RAFCTE Board pr￿1￿ced a Recovery Plan vthich set out the immediate actions nee(led to reduce the CompanKs overheads. generate new revenue and ￿￿leSlgn business pr￿sSeS lo ensure the successful delNery of RIAT 22. With sKJnif￿nI pressure on the business, a 'minimise' approach Was taken on all expenditu￿ and whilst the Q￿c￿aVIruS Job Retention Scheme {CRJSI undoubtedly helF*d. the diffiujli deCi￿On was taken by the RAFCTE Board to ￿trUCture the organisation vthich resulted in 8 20 per cent reduction in stsff numbers. Significantly, in recognitK)n of the value placed in ils trading Company. in May 21. the Board of Trustees agreed a CaFrflal Contribution of £1.7M in FY 20121 ￿lch enabled the RAFCTE Board to confimi with confidence that the business rernained a going u)ncém. With no airshow for 8 secoThJ suwssive S￿rner. the FLAFCTE k4)ked lo build on the critically acclaimed inaugural Virtual Air Tatt￿ (VAT) that was staged in 2020. This free4fyview On￿ne event, streamed fr(m the Company headquarters in Fairford. r￿1ved an exc8118nt response. With this new initiative fiTmly established. the Company h8s begun explorlng a varioty of incomo m¢)J8ls thal would see the VAT stsrt to generate revenue in 2022 and bewnd. Page17 THE ROYAL AIR FORCE CHARITABLE TRUST TRUSTEES. ANNUAL REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2021 Volunteers Under nomal operating years ￿ w(NJld have been delighted to welcome Ihe thousands of dedicated Service and ciwlian volunteer5 vkno make such a significant conlritmjtion and ￿N￿o￿t whose help and h)yal support the annual staging of RIAT wuld not be possi￿e. Volunteers have been intrins¢c lo the Royal Intemational Tatt(x) and RAFCT'S c(Misequent obilty to support a wd8 range of charitable giving since the ￿r Tattoo's InCept￿n in 1971. AJ) Air Tattoo volunteer thooses lo contribute lime and skill for the benefit of the annual Air Tattoo and the parent L*arity. and this event woukj not be Viab￿ without their participation. Each year approximately 1.200 volunteers support the Air Tattoo. many giwng over a we8k of their time to augment the small team of permanent aThJ temporary staff V*tho organise the event y8ar-round. There a a range of skills brought by volunteers, and SC￿e are highly specialtsed. S(Mne 8xamrAes inctude those who support aircraft operations, such as engineers. aircraft refuelling. and folknw-me drivers who heb the aircraft move about RAF Fairf(yrd safely. There rs also an experienced and dedicated team ol Air Trafftc Controllers who ensure that aircraft are able to operate safety in the airspace arourKI RAF Fairford. Olher roles include medical speaalists who run the RIAT MedKal Centre and Ihe Site Team work behind the scenes to ensLJre that everything is safety in place vthen the gates q)8n to the general public and all our visitors each day. In addition lo our vdunleers, we also re￿1ve essential suppc¥t from the Royal Air Force and approximalely 1.000 cadets and staff frcrfn the Royal Air Force Mr Cadets. providing essenbal'summer camps. for cadels. PRINCIPAL RISKS AND GOING CONCERN In 2021, following a wder Strateg￿ review of the Group. Trustees began implemenling a revised Risk FramaM)rk wth an u￿lated rx)licy and new framelths for all Risk Registers. Thesa are utilis8d regulatly throughout the organisat￿. s￿nIfiCan￿y. Ihe Finan¢e. Audit and Risk Assuran¢8 Commiitee h88 led this process and has ensured stn"ngenl audit arKI monitoring of key Risks lo both the charity and the wider Group. This has led to key current risks beiThJ ty)rreclly milvJated lo reduce the overall impact. For instsn¢e, one key risk suth as the cancellation of the 2023 RIAT is balanced though prudenl financial planning and the evaluation of the reserves policy. Similarty. another key risk such as a nalsonal mouming perfod over the timescales of RIAT have been analwl in detAh as a consequence of th8 Risk Franewrjrk in plac*. On reviewing the Going Concern of RAFCT. Ihe Board of Trustee5 ￿￿S￿￿ered the VIa￿lity of RAFCTE as a substsntial income generator. and rfs ￿dgetry aFproach to Mit￿ale future uncertainties. RAFCTrevlew of RAFCTE Buslness Plan Thg RAFCTE Board Ic￿k the decision to deveknp three financial projections for the financial year 2021122 largely based on differing income expenditure wlcomes for RIAT 2022. The Recovery Plan has now been superseded by the Company Business Plan (FY21122 to 24125} detailing RAFCTE'S growth strategy over the next four years. Amcry its key 0￿.ectiVeS are to: • r8cover fr(Mn the COVID-19 legacy by d6liverw)g a significant profrt in 21r22. . Identify and ostsblish a portfdD of new and enduring ccKnmeTrial projecls and events from 2023 ' optimise the C(Mnpany's relat￿nShIpS wlh key slakehokyers and customers to 9ener8le new revenue. RAFCT revie4¥ed and appyoved the CL¥npany Business Plan and supp￿ted financAal modelling which induded altemative fmancial F*Li￿tIonS. RAFCTRisk Alanagement thmugh budgellng •ndrnse•ve$ Acting prudenljy. the RAFCT Board £pF￿0ved a mut￿Year ts￿get V*ith a redueed grant scheme to miluale the polenlial bsl inccxne from RAFCTE until post RIAT23. The multiyear budget Was set with a new reserves wlicy lo ensure RAFCT cculd h￿0￿r all outstanding grant commitments and maintain an acceptab￿ grant CLNnmilment for the next three yea￿. Page18 THE ROYAL AIR FORCE CHARThABLE TRUST TRUSTEES. ANNUAL REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2021 FINANCIAL REVIEW During the year RAFCTE and the Charity placed surplus cash on fixed temi bank deposit whenever cash flow wedicllon alk)wed. This generated a retum of £616 (7 months lo 30 Seplember 2020.. £8.307). Despite* the operating bss during Finarrial Year 20121. Trustee5 noted the Group remains in a stable rinancial position. RAFCTE securing Government SUFPCrt through CJRS and CBILS. The company had daimed additional CJRS fundiTrJ of £364.638 (7 months to 30 September 2020." £343.984) through to the end of septem￿ 2021 and a &year £1.530.000 loan under the CBILS. These ftjnds and finan¢io1 instruments wll help to maintain th8 Compan¥s 0￿rationS through th8 ongoing crisis and have enabled the Group to continue lo manage the liquidty risk by maintaining a baLarKe belween the ￿nt￿lUity of funding and ftexibilily through the av8ilability of adequate cash reserves. Consdidated (i.e. for both the Trust and the Tr&JiThJ Comp￿les) In¢X)me for the pèriod was £608,883 (7 months to 30 September 2020." £2.026,801) of whth £599.326 (7 months to 30 September 2020.. £2.008, 728) related lo the trading activities of RAFCTE and £NIL17 nvyfhs to 30 Seplemb8r 2020.. £NILI lo SAL. Expenditure for the per￿ was £2.552,744 (7 months lo 30 Saplemb8r2020." £2,289,074) of which £2,451.637 (7 months lo 30 September 2020.. £2. 148.083) vras atti11￿lab￿ lo RAFCTE. This resulted in net defi(yt of £1.943.861 {7 months to 30 September 2020.. £262.2131. The expenditure by RAFCTE is predominately a$S￿lated with the stagiNJ of RIAT whth delivers to the Trusl's objective of promoting Ihe Royal Air Force. Scamplon Airshow Ltd (SAL} did not trade in the pericKI. These costs can therefore be consvjered as a cost a$S￿l81ed with the gr(wp's expenditure on delwering the chartlable actimties of the Trust The Tnjst activity is shown in the financial stalements. Gross income to the Trust in the year was £9.557 17 months to 30 September 2020.. £18.073) of Wh￿ £Nil (7 months lo 30 September 2020.. £Ntil) was covenanted from RAFCTE. RAFCT operating and govemance costs were £8,396 (7 nx)nfhs fo 30 September 2020.. £9.451) and grants of £27.186 cradtted back to the Trust (7 months to 30 Septemb8r 2020.. £73,554) V4pre made. details of are shown above. Consolidated net assets were £1,519.813 (2020." £3,463,674) at the balance sheet date, of negative £1,586,308 (2020.. £266.002) represents retained losses {2020.' pmfrtsl of RAFCTE, £Nil the retained profits of SAL {2020 £Ni4 and £1.519.913 (2020.. £3.46a674J rewesents the Trust's unrestricted fund and £100 (2020 £100) the restricted furKIs. The RAFCTE fund is in defictl al the year•d as a result of the RIAT 20 and RIAT 21 shows being cancelled. Tn￿teeS are conf*Jenl that RIAT 22 wryll go ahead as ptanned and will b8 profitab￿ and therefore, reduce the defi¢?t as seen at 30 September 2021. The Trustees considerthal. despite the cancelLalk)n of RIAT 20 and RIAT 21. toth the Tfust and its trading subsidiary RAFCTE are financially healthy and well placed nol ￿lY to meet the demands ol on-going rinancial commitments. bul also to take advantsge of opportLsnities thal may arise in forthcoming years. The finwcial statements comply wth cyjrrent statuttry Nuirements. the Ststement of Re(t￿mended Practice {FRS1021 and the Twst's CIO Art￿e$ and Memordndum of Association dated 1 De(*mber 2017. The finanaal statements havè also been w8pared *tyth regard to gU￿1a￿ wblithd by Ihe Charit Commission on Ihe Operat￿ ofthe Pull￿ Benefit. RESERVES POUCY The RAFCTE tradttionalty provides Ihe main revenue for the Trust through a range of actfvities Tr￿udIng the Royal Intefnational ￿rTattOO. RAF Band Concert Tours. other evenl management activities and salos of MerCha￿lIse. As profrts from sLYne of these events have historically been potentially vulnerable to weather and other exvJewes. the Trustees have Maintain￿ a minimum reserve of £400,000, atthough in recent years the level of cash reserves has been muth huher. This year. the sustained impact of COVID. has resuned in a rewew of the Chari￿s rewve policy and the cons*Jeration of its wder cash holdings and has resulted in a comprehensive reassessment. The Board of Trustees agreed a new reserves policy Ihal outlined the trealmentoffree reserves andfurtherestabli8hed a Designated Fund with three subcategories: Page19 THE ROYAL AIR FORCE CHARrrABLE TrUST TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2021 Investment lo further the charitable puws Working Capital Management reserve in reswnse to future irKThie volatility E￿1 contingw￿Y Under these (¥)ndi¢i(ms, the Trusl remains in a 9t￿ to tJ)ntiiue its I￿*yk and meet ils aims and intent. The Trusleas note that al the yearénd Trust reseNes total￿ £3.106,121 12020.. £3. 197.6721 of whkh £100 is reslrictsd12020.. £ILX)J. Within th¢Jse reseTves the Trust's cash balances totalted £l.9)6.681 {2020." £2. 149. T41). against wh￿h the TTUSt has made Grant commitrnents that have yet to be paid of £146.493 (2020.. £335.022). with uncommitted and liquid funds of £1.295.528 (2020.. £2.262.4501. as compared to the minimum reserve of£400.(KIO requirement set out in the Trusys reserves policy. Under Ihe Designate Fund, £1,700,000 was designated underfurther investmenL £315,7&3 was a capital Management Reserve and £36.774 was lor an exit c4Mliiwency. PLANS FOR FI￿uRE PERIODS The Board of Trustees. detision lo utthte the Chariws objects (subject to ratification by the Charities Cofflmission) is a key element in driving the new Strategy of Ihe Group fop•48rd. This will entail a rebrand of the Group and 8 focus on delivering against the new oLie(ts vthich are: To advance education in a￿allon. space operatM)ns and Scipm, TeclwkyJy, Engineering and Maths ISTEMI sutl'ects. To advance in life young pecyle through events. grants and activit*s that provide access to and involvement in forward4ooking air and space opportunities.. and that empower them to contribute to and fulfil Iheir potential in society. To pr(Mnote recruilmenl to and the eff￿ency ol the Royal ￿r Forc£ {RAFI by rAacing Ihe RAF 8t Ihe heart of a programme of vA)rld-class events and activiti&s. The RAFCT will continue to Irx)k fw oprKJrtunilies to refine and prc*nole ts aims and. in doing so. will remain fully engaged the RAF. the olher RAF Charilies. the Cadet Organisat￿n and our key partners. Followng a se¢￿d challengirKJ year, Tnjstees are principally ￿ncerned with protecting the Charily. supporting the Group through to 8 suCC￿ful ￿l5￿K)w in 2022 and dNersrfw'ng its activty. There remain key challenges as we move to a re4aunch of the charity as part of recovery post the cancel￿tion of RIAT 20 and RIAT 21 and Ihe Twstee Board are C￿tent￿th the Considerab￿ progress made in defining its future desired stsle and governan￿. Charitable grants made by the RAFCT are likely to continue lo be al a reduced ￿Ve1 while the Group consolidates its p)sition Ihrough the nexl 12 monlhs. However. Trustees are confident that RIAT 22. folbw.ng C￿nSI(1er3bIa w(yk over the18St year. will place the Group in a sIrL￿g position in the years to cnme. Page 110 THE ROYAL AIR FORCE CHAR￿ABLE TRUST TRUSTEES, ANt4UAL REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2021 ststemoni of Trustees. responslbllltles The Twstfjes are responsible for prepariThJ Ihe Trustees. *nnual Rewt and the financial statements in accordance with applicable law and United lQngdom Generally Accepted Accounting Practice IUNted Kingdom Accwnting Stsndardsl. Charity law rewlres the Tnjslees lo prepare financial StateM￿ts for ea(* financial year. Under that law the Trustees musl r￿1 approve the financial slalements unless they are satisfied thal they give a Inje and lair view of the state of affairs of the Charity and the Grcyjp and of the incoming resources and application of resources. ofthe Groupforthal peric#J. In preparing IhesefinancAal statements. the TNstees are required lo.. select suitsble accounting KK)liues and then apply them CLYtsislently, observe the methods and prinaples ITr the Charities SORP: make judgements and estimates that are reasonable and IN￿nI. state whelher appluble UK a(￿Unting standards have been fdk)wed, subl&t to any m8leri81 departures disdosed and explained in the financial ststements.. 8nd prepare the financial statements on ￿ ￿Ing CA)r￿eM bas￿ unth it is inaprwiale trj presume that th8 Charity will ¢￿tinue in business. The Trustees are resWtslb￿ for keeping adequate accounting recuds that are sufficient lo show and &xplain the CharIt￿S transactins. disch)se wth reasonable 8¢cur8cy at any lime the financial ptssition of the Charity and enable them to ensure that the financial stslefftenls cL¥nply wth the Chariti"e5 Act 2011. the Charilies (Accounts and RepMsl Regu￿tionS 2(M)8 and Ihe wovrstons of the Charity's ￿StitUtion. They are also reSp)nsib￿ for safwJuarding the assels of Ihe Charity and the Group and hence for taking reasonabb steps for Ihe prevention arKI dele(*on of fvaLMJ and other irregulariii8s. STATEMENT AS TO OISCLOSURE OF INFORMATION TO AuD￿ORs So far as the Trustees are aware. there is no relevant audrt infom181K￿ {as defined by Section 418121 of the Companies Act 20061 of vthich Ihe group's audriors are unaware arKI each Trustee has taken all the steps that he or she ought lo have tsken as a Trustee in order to make himseff cf herself aware of relevant wdil Infi￿at￿m and to estsblish Ihat the group's auditors are aware of that lnfc￿Mats0n. The Trustses. ReFKrt a￿1 Strategic Re[￿ k8 ￿gned on bèhaff of the Trust88s by. rma Osbom CBE 21 May 2022 Pagel 11 THE ROYAL AIR FORCE CHARITABLE TRUST INDEPENDEKf AUDITOR'S REPORT TO THE TRUSTEES OF THE ROYAL AIR FORCE CHARITABLE TRUST Oplnlon We have audited the finanual ststemenls of The Royal Force Charitable Tnjst {the 'parenl chariWI and ils subsidiaries {the 'grcMJp'l for the year ended 30 September 2021 comprise the Consolidated statement of fin8n¢ial acfivities, the Charity slatement of financial adiwties. the Consolidated balarKe sheet. the Charity balance she8L the Consoli¢Jaled stster1￿1 of cash fl￿NS and the related noles. induding a summary of significant a(￿IntIng policies. The fina￿la1 rerthnig framevKMI( Ihat has been applied in their weparalion is applicable law and Unitwj KingdoJn AccLwnling Stsndards, including Financial RerK)rtTrng Standard 102 The Finanoal Reprxting stsrK￿rd applicable in the UK and Repub￿¢ of Ireland. {Uniled Kingdc¥n Generalty Accepted Accounting Practtcel. The financial statements have been prepared in accordance Ac£ounting and Repc￿tIng by Charities preparing Iheir accounts in accordance with the Financial Rewrting Standards 8ppIKable in the UK and Republic of Irdand {FRS 1021 in prefe￿nCe to the AC￿unb.ng and Reporting by Charit￿5.. Statement of RecoMMer￿ed Practice issuen-compli8nce ¥￿th 811 Lgws a￿1 regulat￿5. These inherent limitations ale particularfy signthcant in the case of misstatement resulb.ng from fraud as this may involve sophisticated schemes designed to awxd detection. induding deliberate failure to re￿d transactions, collusion or the pro￿s1o￿ of intentional misrepresenlatiorts. A further desuiption of our respor6ibilibes for the audit of Ihe fin￿al statements is on the Flnanaal Reporting Council's **bsite at ¥￿￿.frC.o .uklaudito nsibilitiès. This desttiplion fomis part of our Aud￿0￿$ rep(Ml. Use of our report This rowrt is made solety to the tharitys truslees, as a in a¢(*xdanc* thtyth Part 4 of the Charities (Accounts and ReFQrtsl Regulations 2LMJ8. Our audrt work has been undertaken so that we might slate lo the charitys Irustees those matters we are required to slate to them in an Audilorfs report and fL* no other purpose. To the fullest extent pemiitted by law, ¥￿ do not a￿p1 w assume reS[￿SibIlity to anyone other than the charity and its tnjstees. as a bLbty. for (￿r audit 7Arrfk, for ihis rewl, the LT¥nicffls hav8 fomied. P￿e 14 ## **THE ROYAL AIR FORCE CHARITABLE TRUST** ## **INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE ROYAL AIR FORCE CHARITABLE TRUST (CONTINUED)** **Crowe U.K. LLP** Statutory Auditor Fourth Floor St James House St James Square Cheltenham GLSO 3PR Date: 23 June 2022 Crowe U.K. LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006. Page 15 THE ROYAL AIR FORCE CHARITABLE TRUST CONSOLIDATEO STATEMENT OF FINANCIAL ACTMnES FOR THE YEAR ENDED 30 SEPTEAIBER 2021 R•strlct8d Unrnstrld fund5 funds Total funds Tot81 funds 7 months Year ended Year end Year ended ended 30 September 30 September 30 September 30 September 2021 2021 2021 2020 Income from: Donations and grants Other Ir8ding activities Investments Other income 373,886 234,381 616 373.886 234.381 616 359,694 433,680 8,307 1.225.720 Total Income 608.883 608.883 2.026,801 Expenditura on: Raising funds Charttable actiwties 2.571.534 (18.790) 2.571.534 118,790 2.206,069 83,005 Totsl •xp•ndlhtre 2,552,744 2.552.744 2.289.074 Net movemont In funds {1.943.861} {1.943.861) (262.273) Reconclllatlon of funds: Total funds brought forward Net movement in lunds 100 3.463.674 3.463.774 (1.943,861) (1.943,861) 3. 726,047 (262,273) T¢)tsl funds ¢arrfed fonpmrd 100 1,519,813 1,519.913 3.463. 774 The notes on pages 21 to 43 fom part crf these financial statemnts. Pag8 16 THE ROYAL AIR FORCE CHARrrABLE TRUST CHARITY STATEMENT OF FINANCIAL ACTMTIES FOR ThE YEAR ENDEO 30 SEPTEMBER 2021 Restr1¢1￿ Unrnstrlctod funds funds Total funds Tot81 funds T months Yearended Year end8d Year ènded ended 30 30 S•pt8mb8r Septomber Sèptember Seplember 2021 2021 2021 2020 Income from: Donations Investments 9,248 9.248 15, 710 2.363 Total In¢omo 18,073 Expendlture on: Raising Chartlable activities 119.898 (18,7￿) 119.898 {18.790) 57,986 83.005 Total •xpondlture 101.108 101,108 140.991 Net movement In lunds (91,5511 {91.5511 (122,918) Raconclllatlon of funds Total funds t¥oughl fon¥ard Nel movement in funds 100 3,197,672 {91.551) 3.197.772 3.320.690 {91,551> (122,918) Total fund¥ cwrfed fon¥ard 100 3.106.121 3.106.221 3, 197.772 Page 17 THE ROYAL AIR FORCE CHARITABLE TRUST CONSOLIDATED BALANCE SHE AS AT 30 SEPTEMBER 2021 Charity Number.'1176054 2021 2020 FIX￿ assets TangilAe assets 13 1,183,401 1,260,208 1,183A01 1.260.208 Current assets Stocks Debtors Cash at bank and in hand 15 16 96.693 828.390 5,801,538 623,478 6.403,636 6.72&621 7.027. 114 Creditors.. amunts falling due within one 17 15.166.109) (3,319,048) Met current assets 1,560.512 3,708,066 Total assets hss cvrr•nt liabilities 2,743,913 4,968,274 Creditors: amounts faI￿ng due after mc than one year 18 {1224.0001 (1.504,5QO) Total net assets 1.519.913 3,463,774 Charlty funds Restricted funds Unrestricted funds 19 100 too Designated funds General fvnds 19 11.586,308) 3,106,121 266,002 3. 197.672 19 Total unrestricted funds 19 1.519.813 3,463,674 Totsl funds 1.519.913 3,463,7T4 ancial stslements apwoved and authori5ed for issuo by the TDJslees on 21 May 2022 arKI sKJn8d on their behalf by. Air Marshal Philip Osbom CBE Twslee The notes on pages 21 to 43 form part of these financtal StsteT￿nts. Paga 18 THE ROYAL AIR FORCE CHAR￿ABLE TRUST CHARrrY BALANCE SHEET AS AT 30 SEPTEMBER 2021 Charity number. 1176054 2021 2020 Fixed ass•ts Irwestm6nts 14 1.700.100 6Ck),100 1,700,100 600.100 Current assets Debtors 16 1.123.373 2.149,741 Cash at bank and in hand 1.906.681 1,906,681 3,273, 114 Credltors: affKyJnts fallSNJ due vAthln c 17 1500.560) (675.442) N•t current assets 1.406.121 2.597.672 Total Trat assets 3.106.221 3,197,772 Charity funds R&strict8d funds 19 100 100 Unreslrictsd fvnds General furKIs 19 110&121 3. 197,672 Total unrestricl&J funds 19 3,106,121 3.197,672 Total funds 3.106.221 3,197,T72 The financial stslements ap1￿ed and auihorised for issue by the Trustees on 21 May 2022 and swJned on their behalf by. Alr Marshal Phillp Osbom C8E Trustee The notes on pages 21 to 43 fcm part ofthese finartial ststemwtts. Pagg 19 THE ROYAL AIR FORCE CHARrrA8LE TRUST CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 SEPTEMBER 2021 7 months Year •nded &nded 30 30 S•ptembeT Sepf8mb8r 2021 2020 Cash flows from 0￿ratIng actlvlties Net cash used in operating ath"wlies {969,7891 (1.443,469J Cash fl¢)ws from Investlng actlvllles Purthase of tsngitrje fved assets Govemment gr8nts recaved Interest re￿iVed {1,268} 364,638 616 (2.925) 343,984 8,307 Nel cash provlded by Inv•stlng a¢tlvltl8s 363,986 349.366 Cash ftows from financlng activhles New secured loans Repayments of bwowng Interest paid 1.530,000 (32,099) {397) Not cash provldod by ftnanclng actlvltles 1.497.S04 Change In cash and Cash equlvalents In the year Cash and ￿$h equivalents al the tegining of the year {605,803) 6.403.193 403.401 5.999,792 Cash and cash equivalents at the end of the year 5,797,390 6,403,193 The notes on pages 21 to 43 form part ofthese finarKial stslements Pag8 20 THE ROYAL AIR FORCE CHARThABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 Accounting policies 1.1 Basis of preparation of financial sLitements The financial statements have been prepared ￿ accoT(Jance with Accounting and Reporting by Charib'es. Statement ol Recommended Practice applicatAe to charities preparing their accounts in accordan¢e the Finanual ReFK*1ing Standard applicable in the UK and Republic of Ireland IFRS 1021 leffective 1 January 20151 {Chartties SORP IFRS 1021, th8 Finanaal Reporting Standard applicat4e in the UK &KI Republic of kelaThJ IFRS 102). the Companies Act 2006 arnl the Charities Act2011. The ￿ns01{dated finand81 statements have been rKep8red under the hisl(wtal ￿st ￿nVention. The Royal Air Force Charilable Tnjst m8ets tho definiti￿ of a wtAic benefil entmy under FRS 102. The Charity has tsken advantage of the exemptions in FRS 102 from the requirement lo present a charity only Cash Ftow Statem￿t and c&tsin disclosLbres 8bout its own finarKial instruments wlhin the c¢)nsolidaled finanual statements. These fman¢ial Statements wiwlidate the rgsults of the d￿rity a￿1 ils subsidiaries, The Rospl Air For￿ Charitsbb Trust Enlerprises {Company no.. 0219)3931 and Scarnplon Airsh¢)w Limited (C¢Jmpany no: 102338101. Scampton Airshow Limtted was d¢)rmant throughout the year. The Consdidated slalement of financial actiwties (SOFA) and ConsolKlaled balance sheet consolidate the finanual statements of the Charity and subsidiary undertakings. The resulis of the subsidi8ries are C￿sCI1(￿at8d on a fine by line b￿s. All intergroup transactions are fulty eliminated on consc4idation. During the p￿ViOuS financial period. The Royal Air Force Charitable Trust shortened its acccAJnting period from 29 February 2020 10 30 September 2020. The Roydl Air Force Charitable TTUSI has the legal authority lo shorten its year end in line wilh its goveming dotsjmnts. As suGh the prfor year ¢ompwative figures are not directty(y)mparabte to the CU￿￿nt year results. 1.2 Golng cOn￿M With the emergence of the Co￿d-19 pandemic. 2020 has brought unprecedented uncertainty and challenges. RIAT 2020. Ihe group's usual main source of extem81 ￿venue in eath year, was cancelled in March 2020, polentialty putting at risk the future financyal security of the wholly owned subsidiary Djmpany (Royal Force Charitable Trust Enterprises-RAFCTE") at that tim8. In January 2021. Govemmenl announced a third naI￿al thkdovm and the second wave of the pandemic presented RAFCTE wth unprecedenled challerw. The decisiC￿ was tsken by the RAFCTE board on 12 Fet*U8ry 2021 to cancel RIAT 21. Nevetthdess. subslanlial VKJrk has been perfCfft￿d in the perictyj sirth the can￿lIatiOn whlch t RAFCTE Directors are pleased lo ￿p(￿l has stsbilised the cuffenl financial poSitK￿. Sn Sept 2021, RAFCT. made a capital contributbon of £1.7m which enabled the RAFCTE Board lo confirm wlh confidence that the business remains a going concem and is well placed to delwer a wodd class event in 2022. The Direclors remain confident that RIAT 2022 can evolve to meet the prevailing regulations and conditsons ￿ wll facé in July 2022. There of cnurse remains a risk that RIAT 2022 might still face cancellathjn in these unc£rtain bmes.. however, wth th8 contlnuing support of ovr stakthddors. ts Dwlors believe that V4P ￿rI1 c4)ntinue to have access to sufficAenl cash to remaln solvent. In addilw. the Tnjstees of Ihe RAFCT are (￿fident that the thrity ￿ access to sufficient cash. Pagg 21 THE ROYAL AIR FORCE CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 Accountlng pollcles (contlnued) 1.2 Golng concern (contlnued) ak)n￿d9 the ability lo grant or ¥￿thI￿k1 fvnds, lo erÈsure Ihe Chaiity wll continué as a golng conc6m. Accordingly, tho going concem basis (Thtinues to be adopted in preparing the financial slalements of the Charity and the Group. 1.3 In¢om¢ Income from donatlons Income from giftslcovenants is rets)gnised li the finanaal slatemenls wthen the Charity bet￿Me$ enlitied lo the income. it is probable that the income Vlill be received and the amount can b8 with suffic4ent reliabilty. In¢ome from Othor trading a¢tivitsos The amounts shown in the Consolidated Statement of Fina￿31 A¢tivitses represents Ihè valua of all goods and seNiees supplied to customers during the year, al sdling price exclusive of Value Added Tax. Income is recognised at the ￿rnt at CharÉty or Companies hav8 fulfilled their conlracttjal obligabons to Ihe customer. AJI income Is recognised ono the Charity has entitlement to the Income. it is probabl8 that the ti)rxrfne will ba re(*ved and the am(wnt of In￿m8 recelvAble can be measured reliabty. Govemment Grants: Job Retenti￿ Stheme". Income from govemment grants. whether 'capllaf or 'revenue' grants, is recognised kn the Charsty has entit￿ment lo the funds, any perfoman conditions attached to the grants h8ve been met. it is wobable that Ihe income will be received and the amount can be measured reliabty. Where entiuemenl 0¢￿[S before inc￿rne is received, the income is accrued. Wh8re Income is received in advarKe of the Charity ￿tI￿eMent lo the frjnds the income is deferred. Other Ir￿ome is recTr2nised in Ihe per￿￿ in wthich it is receNable and to Ihe extent the goods h8ve been provided ￿on ccMnK￿eti0n of the service. 1.4 Expendltura ExperKliiure is ￿￿nted for cffj an accnjals basis. Cosis of raising funds reflect costs of RIAT, marketing. publiuty and printing costs associated wth enhancing public awareness of tho Charity tcgether ¥￿th staff cy)sts. Grants paydble have been fecognised in the finan&81 stsiernents when the Charity has formally approved the irKliwdual instriutwjns, aP￿Ication for grant monies, at the Trustèes, Mèeting and thls has be8n wnmunicated to the third paty. Fleas8 refer to the Trustees, Annual Report for analws of the grants awarded during the sear. Govemance co*5 indude expenditure (Jirecty attritmjlable to the Trustees, statuw, constituti)nal and strategic duties and are disdosed in Note 9. AJI experKlilure is daS￿fied under aCtI￿ty headings that aggregate all costs related to the category. Irrecoverable VAT is charged against Ihe category of expenditure for which it was incurred. Eypenditure on Ch￿itable a¢b￿ is In￿rr&I on diredty Undertaking the activities whith further the Group's objectives. as well as any asscoaled SUPFQrt costs. Page 22 ThE ROYAL AIR FORCE CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 Accounting polici¢s (Continued) 1.5 Taxatlon As a Tegislered charity. the Chaiyty is 6ntitl8d to Lqxation 8xemptions cffl all inc￿0 and galn8 property appligd for its charilabb purposes. Tax is recc*Jnised in [￿Offt and loss except th* a charge altributable lo an item of income aNI expense rec(yJnised as other txmnprehensive inwme or lo an item recognised directly in equity is also recognised in other wmprehensive incomè or directly in equity respectively. The current incomè lax charge is cakuL4ted the basis of rales and laws that have been enacled or substantively ena¢Xed by the ￿p(￿ting dale in the c(wntries ￿ere Ihe Group operates and gènerates in￿me. 1.6 Tangible fixed atsets and depreciation TangitrAe ffiX￿ assets are staled al cost I￿$ (*pr￿latiOn. FreetKJd laThl Is not deweciated. Cost represents purchase prM% togetsr *Aith any inodentsl t>)sts of acqui81t￿1n. There is no caplialis8tion limit. The caTrying values ofthe tsngible fixed assets a￿ revbtiv￿d for impaiTment wh8n events or thanges in circumstancAs indicale that the Carr￿n9 value may not be recoverable Depreaath)n is prowd&J cx) tanglb18 fixad ass8ts so 8S to writs off the costs on a stravJhl line basls, less any resKlual value. over their expectsj useful e￿￿orniC life as folkA¥s.' The estimated useful lives are as follows: Freehokj prwerty Motor vehicles Fixtu￿$ arnj fillings . 50 srars 1.7 Inw$tm•nls Programme related investments are initially meaSUr￿j at C•)$( and a￿ measured SUbSeqL￿7ttY at cost price adjusted for impairments Ithere necessary. IncKMJed within ￿rrent invesb))ents are short lemi cash dep￿lts. 1.8 Stocks Stocks are valued at th8 lower of cost and net realisable value after making due allowance for obsol8t8 and sbw-mowng strth. Cost i￿L￿deS all direct costs and an appropnate proporb'on offixed and VarIa￿e overheads. 1.9 D•btors Trade debtors and accrued income are re{X￿nISed at the seluement amount after any impainments. Prepayments are valued at the am(MJnt p￿paid net of any trade discsts. Where inv(Mces hav8 not received for 2 years. the accnjals and promsrons are down over 5 See Note 17 for indus¥)n ofthe year end. 2A Stock It is necessary to corwder the recoverabilty of Ihe of finished goods and the associated provisioning requtred. When calcuL8ting the St(￿ promsion, management considers the nature and condition of the slod(. as well as aro￿n9 assu￿￿t￿nS around anticipated sababilty of finished goods. see Nole 15. Page 25 THE ROYAL AIR FORCE CHARITABLE TRUST NOTES TO THE FINANCIAL STATEPIENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 In¢om• from donatlons and grants Unrestrlcted fvnds Total funds Tot81 funds 7 months 8nded 30 Sapt8mb8r 2020 Year ended Year ended 30 September S•pt•mbor 2021 2021 Donations Government grants 9.248 9,248 15,710 343.984 Totsl year erbded 30 September 2021 373,886 373.886 359.694 Total 7 nwths 8ndad 30 September 2020 359,694 359.694 Income frorn other tradlng actfvld•8 In¢ome from non charitable trading activltl•s Unrestricted funds Total funds Tot81 lunds 7 months Year •ndod Ygar •nded 8nded 30 30 September Septemb•r Sepl8mber 2021 2021 2020 RIAT Income Other Income Trading IncJ)ma Consultancy Income 379,611 8. 166 7.618 38,285 57.272 165.539 11,570 57,272 1￿539 11.570 Total year ended 30 Septeml)er 2021 234.381 234,381 433,680 Total 7 months ended 30 September 2020 433.680 P898 26 THE ROYAL AIR FORCE CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 Inv•stm•nt In￿Me Unrestrfcted funds Total funds Total funds 7 months Year ended Year ended ended 30 30 September Septemb•r September 2021 2021 2020 Investment inoyno 616 616 8,307 Total 7 monlhs ended30 September 2020 8.307 8,307 Olher Incomlng resources Unrestrfcted fvnds Totsl funds Total funds 7 months ended 30 Septemb8f 2020 Year ènded Year ended 30 September Septamber 2021 2021 Insurance daims 1,225.120 Tot817 months ended 30 Septemb8r2020 1.225, 120 1.225. 120 Page 27 THE ROYAL AIR FORCE CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 Exponditur• on raising funds Other trading expenses Unrestrlcted Total Totsl funds fvnds funds Yoar •ndod Y•ar •nded Period ended 30 S8pt&mber 2020 September Sèptomber 2021 2021 RIAT expenditure Massed bands expendilure Interest paid Admin (¥)sts Trading expenditure Consultancy expeThJilure Payroll costs Depreci8tion Administration expenses 51,253 51.253 491.816 6,195 397 173,059 29,683 38,210 1,265. 119 62.209 139.381 560,235 78 11.570 1.881.809 78.075 8.514 560.235 78 11.570 1.861,809 78,075 8.514 2,571.534 2,571.534 2,206,069 Tolal 7 nbMlhs ended 30 September 2020 2.206,069 2,206,069 Page 28 THE ROYAL AIR FORCE CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 Analysis of •xpendlture on charltabl• xtlvltl•s Summary by fund type Unrestrlctsd funds Total funds Total funds 7 months ended 30 Sèplember September Septembei 2021 2021 2020 Year end•d Year ended Charitsbl8 acliwlies {18,7￿) 118,790) 83.tX15 Total 7 months ended 30 September 2020 83,LK15 83,(W5 The Royal Alr Forcè Charitable Trusl has canc*lled ￿ r8tumed a number ofgrants for year ended 30 September 2021 as a resum of Covid-19 meaniru the grantees ccmjld not undetske the activities for which the grants ￿Te originally granted. This has resulied in a ￿￿11 baL3nce wthin Charitab￿ acts'vities expenditure. I￿alysIS of oxpgndllur¢ by aclfvltl•s Actlvitles undwtaken dlrectly Total nd$ Total funds 7 months ended 30 S8plamb8r 2020 Yèar ended Year ended 30 30 Septembèr Septembgr 2021 2021 Charilabl8 aciry1158S {18,7￿) (18,7901 83.005 Totsl 7 months ended 30 Septembgr 2020 83.005 PwJe 29 THE ROYAL AIR FORCE CHARtrABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 Analysls of gxpendlturn by actlvftles Icontlnued) Analysls of dlrect eosls Support Total funds Tofal funds 7 months ended 30 September 2020 Year ended Year ended 30 September September 2021 2021 Grant expeThJiture Goveman¢e cnsts {27,186) 8.396 127.186) 8,396 73,554 9,451 118,7901 (18,7901 83,005 Tot817 monlhs ended S8Ptemt*r2020 83,LX)5 83,005 Included within govemance costs above for the charity is £886 17 months eTr*d 30 S8Ptember 2020.. £695) of Iravd and subsisience costs arbj £7.510 17 monlhs erKled 30 September 2020.. £8.756) of professional fees. No grants to indmduals were pahl durirKJ the >ear. 10. Audltofs remunerallon 7 monlhs Year ended 30 Septamber 2020 S•ptember 2021 Fees payable to the Charitls auditor in respe& otr. The auditing of the accA)unts of the Charrty The auditing of the a(￿Unts of the subsidiary entity All assuran￿ services rnt Ind￿ atthe 3.500 11,950 3,776 11,950 3,776 Page 30 THE ROYAL AIR FORCE CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 Slaff costs Group Group 7 nR)nths ended Yèar endgd Charity Charity 7 months Yèar ènded ended 30 30 Septamlw Sept&mb8r Septgmber Sapt8mb8r 2021 2020 2021 2020 Wages and salaries Social security ujsts ContribUt￿n to defined ￿)ntributiOn pen￿1 schemes 1.624.573 145,178 1.098, 763 109, 106 92.478 6,768 49,076 3.955 92.058 57.250 4.200 2,450 1.861.809 1.265. 119 103.446 55.481 During Ihe yoar there were redurwjancy. termination payments and restructuring costs of £160.506 (7 months endad 30 Seplernber 2020.. £nil) in rdation to agreements made with employees to end employment C￿ntraCts. There was £nil (KItslarKlir￿ at the sear end (7 months ended 30 Seplember 2020.. £nil). In addition lo wages and salaries. costs totalling £55,575 17 mnlhs ended 30 Seplmber 2020.. £9,027) were inuJrred in relatiL¥b to sew empwd conlraclors. The average number of pe￿$ emplosed bythe Charity during the ￿ar was as fdlows: Group Group 7 months Year end•d 30 September Septemb8r 2021 2020 No. No. Air shows Other 37 49 39 51 Page 31 THE ROYAL AIR FORCE CHARfTABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 11. staff costs {¢ontinued) Thè number of 8mpbsw empbyBe beneffls {exthding empk)yer pension costs) èxceeded £60.C4)O was: Group Group 7 months Year ended 8nd8d 30 30 September Sweniber 2021 2020 No. In the band £fK),¢YJ1 - £70,OC() In the band £70.¢YJ1- £80,0 In the band £80,001- £￿.000 In the band £￿.001 - £100.0(KJ In the band £1(K).￿l- £110.( In the band t1￿).0{K¥- £160.¢XK) The Sen1￿ Management Team of Ihe Group are deemed lo be the Directors of each entity and th& Trust Director. The remuneration for these teams amounted to £697.834 (7 monlhs &nd8d 30 September 2020.. £380.323J. This is inclusive of em[405￿$ nalional Insuran￿ arKI pension costs. 12. Tru8tee8' remuneratlon and expenses During the year. no Trustees received any rBrwnerati¢)n or cther benefits (7 nk)nths ended 30 September 2020.. £Nil). During the sear endgj 30 Seplember 2021. expenses totsllirg £E94 were reimbursed or pabd directly to 4 Trustees (7 months ended 30 September 2020.. £548 to 3 Trust88s) These related to travel and subsistence and professi￿81 fees. Paga 32 THE ROYAL AIR FORCE CHAR￿ABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENOED 30 SEPTEMBER 2021 13. Tangible fixed assets Group and Charlty Freehold property Motor Flxtures and vehlcles fittings Total Cost or valuatlon At 1 October 2020 Additions 1.663.394 52.763 645.540 1.268 2.361,697 1,268 At 30 September 2021 1,661394 52,763 646.808 2.362.965 Depreclallon At 1 October 2020 Charge for the y 32.337 580,346 48,515 1,101,489 78.075 23,714 At 30 Seplemb8r 2021 512,520 38.183 628.861 1,179,564 Net book value At 30 September 2021 1.150.874 14.580 17.947 1.183.401 At 30 Sept&mbar 2020 1,174,588 20,426 65, 194 1.260.208 The net book value of freehdd 18ThJ and ￿lIding$ indudes £477.550 (2020.. £477.550J of land which is not derYe(yated. Pag& 33 THE ROYAL AIR FORCE CHARITABLE TRUST NOTES TO THE FINANCIAL STATEPIENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 14. Fixed asset Investments Investments In subsldlary Sodal compan￿5 InYè8tm8nts Totsl Charity Cosl or valuatk>n At 1 October 2020 Additions Repayment of programme related investimnt 100 1.700.000 600.000 600.100 1,700,000 1600.0001 1600,0001 At 30 S8Ptomber 2021 1,71)0,100 1.700.100 Net book value At 30 September 2021 1.700.100 1.700,100 AI 30 Septstmb8r2020 100 600,OC 600.100 In 1994 the Charity made an interest free arKI unse¢ured k)an of £600.0￿ to its subsldiary RAFCTE. The loan to RAFCTE was for the purpose of provitling financ* for activities which fijrther Air Displays in accordance the charTtab]e obiectives of th8 Charity and as a resutt the Trustees deryded during 2016 to transfomi the deblor into a Programma Related Investment (Soual inves¢menl). Thls was repaid by RAFCTE on 6 Juty 2021. RAFCT made a further investment in RAFCTE totslling £1.7m during the financial year. The Chaiity also c*vns £100 ofshare Capilal in SAL a domwnt subsidiay. F¢y detsil$ of subsidiaries see Note 27. 15. Stocks Group 2021 Group 2020 Finished gwts and gcixls resale 96.693 Stock is ststed after a proMsk)n of£6.781 (2020.. £89,636J. Page 34 ThE ROYAL AIR FORCE CHARrrABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 16. Debtors Group 2021 Group 2020 Charfty 2021 Charily 2020 [￿e wlthln one year Trade debtors Amounts owed by grc4Jp undertakings Other debtors Prepa￿entS and accrued income 391763 100.756 1, 123,373 14.353 419,274 522,722 828.390 623.478 1,123,373 17. cr￿ltors. Amounts falling due within one year Group 2021 G￿up 2020 Charity 2021 Chaftity 2020 Bank overdrafts Bank loans Trade creditors Amounts owed to grcw undertakings Corporation tsx Other tsxalion and soial secJJrity Other creditors Awuals and deferred ineome Grants aCrn￿d- institutional 4.148 306,000 78N51 4.148 443 25. 49.070 35 343,673 63.379 103,163 18.080 4.446.395 146,493 63.379 203,605 16.010 2.626,019 335,022 4,310 1.930 146.493 339.942 335.022 5.166.109 3.319.048 500,560 675,442 Group 2021 Deferred income at 1 Oclober 2020 Resources deferred duriThJ Ihe 2,205.069 2,051,048 4,256.117 Included within deferred inc4Jme are smo￿ts relate to future peri￿ baginniig or after 1 OurA)er 2021. Page 35 THE ROYAL AIR FORCE CHARrrABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 Noto 17. {contlnued) Reconclllatlon of grnnt credlt¢rs - Group and Charlty 2021 Commitments at 1 October 2020 Grants 8wardeil in the year Grants paid in the year Grants clawed ba￿ in the 335.022 171.722 {161,343) {198,9081 Commltments at 30 September 2021 146,493 18. Creditors: Amounts falllng due after more year Group 2021 GM)up 2020 Bank k)ans 1.224,000 1.504,5 In¢￿ded ￿thin the at￿ve are amounts falliro due as folkths: Group 2021 Group 2020 Betwoen one and two yoa Bank loans 306,000 Between Iwo and flve years Bank loans 918.000 1.224,000 Over fivo years Bank loans 280.500 S•cured loan The bank loan tolallrvj £1.530.1￿ is from Bard4E Bank is secured by a mortgage ¢Jebenture Inc4)fFrt)rating a first kgal charge over the freehold propety and land at Douglas Bader House. Horcott Hill. Fairford. GkyJcestershSre, GL7 4RB. £25.5¢KI is due for repawnent no18t6r than 30 September 2021. The net book value of the freèhold land and propwty at the year ènd was £1.150.874 12020.. £1, 174.588). An Interest rate of 2.75% is applied to the balance of the fixed rate loan facilty of £1.530.CJXI. Page 36 THE ROYAL AIR FORCE CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 19. Ststement of funds Statem•nt of funds- cumt yoar Balance at Balance at 1 O¢tober 2020 Soptember 2021 Income Expendlturn Unrestrlcted funds Deslgnated funds RAFCTE 26&002 S99.326 11451.636) {1,$86,308} General funds General Funds- all furKIs 3.197,6n 9,557 {101.1081 3,106.121 Total Unreslrl¢ted funds 3.461674 608.883 12,552.744) 1.519.813 R￿trIcted funds Restricted Funds- all funds 100 100 Total of funds 3A63.774 608.883 (2,552.7441 1.519,913 Pag6 37 THE ROYAL AIR FORCE CHARrrABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 19. Slatsment of funds Icontlnuedl Statement of funds- prfor year 88lanc8 81 30 Sgptgmber 2020 Balance at 1 Marth 2020 Income Expenditure Unrestricted funds Designa¢od funds RAFCTE 405.357 2.CW.728 (2. 148.083) 266,002 Gen•ral funds General 3.320. 18.073 (140.991) 3, 197,672 Total Unrestricled funds 3.725.947 2,026.801 (2,289,074) 3,463,674 Ro$trfcted funds Restrided Funds- all fvnds IC(1 100 Totsl of funds 3.726,047 2.026.801 f2.289,074) 3,463, 774 The RAFCTE Fund's purp)se 1$ io be used by Ihe Irading o)mpany to ensure there are encAJgh funds to meet ￿$ts as they fall tlue, Wing up lo the RIAT each ￿ar. Restrl¢ted funds The RAF Waddington Fund vras lo fvnd the r￿ ar sh(yw at Scamp1(￿. Page 38 THE ROYAL AIR FORCE CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 20. Analysls of not o$$•ts bèt**•n funds Analysls of net assets bet**en funds - curront yoar R•strlcted Unrestrlctgd funds funds 2021 2021 Total funds 2021 Tangible fixed assets Current assets Creditors due w6th1n one year Creditors due in more than one s*ar 1.183.401 1,183,401 6.726,521 6.726.621 15,166.1¢YJI 15.166.109) (1,224,0￿) 11.224,000) 1Crt) Total 100 1.519.813 1,519.913 Analysls of nat assets bet￿on funds - prior year R6stiicl8d Unrestricted funds funds 2020 2020 Total funds 2020 Tangible fixed assets Cu￿ent assets Creditors due wihin one sEar Creditors due in more than one 1.260.208 1.260.208 7.027.014 7,027, 114 {3.319.048J (3,319,048) (l,504,5[￿) (1,504.5CQ) loo Totsl ICQ 3.463,674 3,463, 774 Pag& 39 THE ROYAL AIR FORCE CHAR￿ABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 21. R•cOn¢llla￿0n of nel m¢)vomenl In fvnds to not ¢ash flow from oporallng actlvlll Group Year •nd•d Group 7 months end8d 30 Sept8mbw S8pt8mb8r 2021 2020 Net experKliture f¢y the sear las per Statement of Fin8ncial A¢b￿lIeS} 11,943,861) (262,273J Adjustmènts for. Depreciation charges Interest received Ilncxeas8yd8creas¢ in slor Ilncreaseydecreose in debtOTS Increasel(decreasel in credilcffs Govemmenl grants Inleresl paid 78.075 1616) {96,693) {204,912) 173.063 1,562,856 (1,064,574) (364.638) f343,984) 397 62.209 (8,307) Net cash used In ¢¥>eratlng actm {969,789) {1.443.469) Analysls of cash and cash equlvalents Group 2021 Gmup 2020 Cash In hand Ovwdraft facility repayable on demaThJ 5,801,538 141481 6.403,636 1443) T¢)tal ush and cash fjqulvaknts 5,797,390 6.403, 193 Pa98 40 THE ROYAL AIR FORCE CHAR￿ABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 23. Analysls of changes In dobt Other non- At30 cash September changas 2021 October 2020 Cash flows Cash al bank 8nd in hand Bank overdrafts repayable on demand Debt due within 1 ye Debt due after 1 6,403,636 1602.0981 {3,7051 5.801.538 (4.148) {280.$00) 1306,000) 280,$00 {1,224,000) (25.SOO) {1.504,500) 871193 {605,803) 267.390 P¢n$lon commitmonts The penslon cost charge for the peri(MJ represents ry)ntributions payable to the defined ￿tribUtIOn scheme arKI aMO¥Jn￿ to £92.05817 months ended 30 September 2020.. £57,250). Contrlbullons lotalling £13.764 (2020.. £16.010) were payable to the scheme al the end of the ￿rIOd and are included wthin other 25. Operating lease commltments AI 30 September 2021 the Group arKI the Charity had commtlmenls to make future minimum lease payments under nowancellable cwating leases as follows: Group 2021 Group 2020 Not later Ihan 1 1.770 The followlng lease paJThents been recognised as an expense in the Statement of financial actiwties: Group 2021 Group 2020 Operatlng lease rentals 1,770 2,065 Page 41 THE ROYAL AIR FORCE CHAR￿ABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 Related party transactlons Royal Alr Forcé Charltabk Trust Enterw1￿$ (RAFCTE) The Royal Air Force Charita￿e Trust En￿r￿SeS ￿ a vtholty ¢xvned subsidkgry ofthe Charity. During the Jpar. RAFCTE vRre reimbursed Costs of £103.445 17 months ended 30 September 2020.. £55.406) whit* were pakl on behalf of RAFCT. There was an L￿￿tanding balan￿ of £10.101 due from RAFCT al the year-end (2020." £1. 123.373- due lo). Scampton Alrshow Limlted {SAL) Scamplon Airshow Limited is a sthidiary of the Charity. The C￿npanY was d¢￿an( during the financial year. RAF100 As part of a pr(wamme related investment RAFCT is 8 P8rtner of RAF1￿. Royal Inttrnalional Alr Tattoo Flylng Scholarships for Disabled People This charity has a close relationship wth the Royal ￿'r Force Charita￿e Trust Enterprises Limite(I from vthich it derives tts name. During th8 year RAFCTE were reimbursed costs of £7.OCMJ {7 monlhs ended 30 Septémber 20201 whith were paid on behaw of the Royal Intemational Taltoo Ftying Sdbolarships fcY Disablod People. The amounl paydble lo RAFCTE at year end was £nil {2020.' £ni4. There were no other reLaied party transa(aions durirKJ Ihe year12020.. Non8). Page 42 THE ROYAL AIR FORCE CHARrrABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 27. PrfncSpal subsldlaTles The following was a subsidiary undertaking of the Charity. (knetship of RAFCTE is held by the Charity. As suth RAFCTE Is deem8d to be a ovmed subsidiary of the TnJst. Under the Trust Deed the Trustees have the power to appoint a￿or remove any rKKporalion aGting as their nominee, ultimate control of RAFCTE is therefore held by the Tn￿1. The following was a subsidiary undertaknng of the Clty. Name Company number Registered office or principal Principal actlvlty place of buslness The Royal Air Force Charitatle 0219)393 Trust Enterprises (RAFCTEI Dougles Bader Hijjse. Horcott Running the Royal Hill. Fairford. Glwceslershire. Intematic￿aI Air GL7 4RB Tattoo IRIATI Class of shares Included In consolidatlon Limited by Yes guarantee The fmancial results ofthe Sutksmjlaryf￿lhe were: Name Income Expendlture (Loss} for the year Net aS80ts The Royal Air Force charit￿18 Trust Enterprises (RAFCTE) 599,326 (2,451,636) (1,852,310) 113.692 Assets totalled £6.332,561 liablit*s totslled £6.218.869, uiving total nel assets 01 £113,692. Page 43