THE ROYAL AIR FORCE CHARITABLE TRUST CONSOLIDATED REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2022 Charlly number: 1176054 CIO numbor: CE012521 THE ROYAL AIR FORCE CHARITABLE TRUST CONTENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 CONTENTS PAGES Officers and profe88lonal advl8or$ TTUStee8' Annual Report Independent Audltofs Reportto thè Trustfr8S 10-13 Con8011d8ted Slalemenl of Fknanclal A¢llvltle$ 14 Charlly Stalamenl of Flnanclal Actfvllles 16 Consolldaled Balanctr Sh¢el 16 Charlly Balanca Sheet 17 Consolldated Stalemenl of Cash Flows 18 Notos to the flnanclal ¥talement8 1￿40 THE ROYAL AIR FORCE CHARITABLE TRUST OFFICERS AND PROFESSIONAL ADVISERS FOR THE YEAR ENDED 30 SEPTEMBER 2022 Reglstor¢d Charlty Name: The Roya Ar Force Charftable Trijsl Charlly No: 1176054 Company No: CE012521 Govgrnlng Document: CIO Artldes and M8morandum ofAs80clallon l December 2017 Trustegs: Alr Marshal Phlllp Osborn CBE Mr lan Bereslord MBE FR4eS CEng FloD CDlr Mr Peter Brown MBE Bsc MT$ F¢llcSly ChadwlckW18ted BA Msc Mr Raj Mody MA FIA Mr Stephen Oldlleld Lady (Della) Thornton LLB Ba￿181￿r-al-LaW Ire8kJned 29 September 2022} Lady (Kale) Wlgslon LL8 8A Alr Marshal Slr Jullan Young KBE CB FREng TruBt Sgcrotary: Group Caplaln Ju811ne Morton OBE BA MA FCIPD PrIncIp￿ off1￿. Douglas Bader Hou58 Horcolt Hill Fairford Gloucester8hlre GL7 4RB Ind¢pèndont Audltor: Cr¢)wa U.K. LLP Fourth Floor st J8me8 Hou88 Sl James Square Chell8nh8m Glouceslershlre GL50 3PR Bankorn: Barclays Bank PIC Brllannla Warehw8e The Docks Gloucester Glouc8818r8hlre GL12YJ 8ollcltor8: Charles Russell LLP 8.10 New Feller Lane London EC4A 1 RS Pege 1 THE ROYAL AIR FORCE CHARITABLE TRUST TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2022 Inlroductlon The Tru8lee8 pre￿t the consolklaled group flnanclal slalemenl8 for The Royal Alr Force Charltable Tru31 (RAFCT) for th8 12 monlhs to 30 September 2022 whlch Incorporate th6 results of Ihe Tr4JsI's subsldlarles, The Royal Alr Force CharilableTru&t Enlerprlses Llmlled IRAFCTEI and ScamplonAlrshow Llmlled (SAL), lor the year ended 30 Seplembgr 2022. Rthfèrènco and admlnl$tratlve delalls R8fer8nce and admlnl$trallve deta118 are shown In the schedule of offi¢er& and profe8slonal advtsers on page1. Th• Trustees The Trusl¢es who served durfng th8 perlod up to when the financlal slalementswero 81gned are as follo￿. Alr Marshal Phllip Osbom CBE Mr lan Ber88ford MBE FRAeS CEW FIOD CDlr Mr Pglor Brown MBE Bsc Mr8 Fellclly Ch8dwlck-Hlsted BA Msc Mr Ral Mody MA FIA MT Stophèn Oldlield Lady (Deli8) Thornton LLB B8rr181er4t-Law Iraslgned 29 September 2022) Lady (Kale) Wlg8lon LLB BA Air Mar8hal Sir Jullan Young KBE CB FREng STRUCTURE, GOVERNANCE AND MANAGEMENT Hl8tory and oharltable oble¢tl¥e$ The Trustwas eslabllshed In 1950 In Eft￿and and Wales, with a grant of£30,OOOfrom the then Alr Councll, now Minlslryof Defence, to promote, Pfe$enl or co-operate In the organlgallon ofalr pageants and display8, In order lo promote tho re¢rullm8nt and 8ffittl8ney of the Royal A* FOTCO. The oilglnal Trust Deed stales that proceeds of such alr show8 may be used to fuTlhgr the 8lm8 of th8 charlly, or for any other charltable purpose Ihal wlll benelll pa81 or present members of the Royal Alr Forc8. The Trust provlded fIna￿ and admlnlslratlve support for a number of alr 8how8 held al vaflous locatlons, durlng the perlod 1950 to 1087, and donated Income toth8 Royal Alr Force Bènevolenl Fund for the benefit of servlng and fomer members of the Royal Alr Force. The Trust remalned mostly Inactive durlng the perlod 1988 10 1993, a$ lh& Fund had formed a tfadlng sub61dlory1 The Royal Alr Foroe Benevolonl Fund Enterprlses. lo Undertake Ihe prlmary atr show aGlivily. The Charlly Comm1881on approved a wlsed Scheme of Admlnlstrallon. YAdenlng the permltled acllvllles. but retolning the origlnal objects of Ihe Tru81, on 18 February1994. FollowSng Ihls, Ihe Trustees were able lo take theloadlng role In financlng the a116how a¢llvlly of the tradlng Company, whlth donated proflts lo the Tfusl. Followlno the completlon of o governance r8vlew In 2CrtM, a d8d8ton was taken to dier tho relailonshlp betwÈÈn the Royal Alr Force Benevolent Fund. It8 tradlng company. and Ihe Trust. In January 2005. wllh the support of the Charlly Commlsslon, RAF, the Ben8volenl Fund and MOD, th8 TrustwBs renamed 'Th8 Roy81 Alr Force Charitab58 Tru81'. chaTIty number (210848). Th8 Tru51 then assumed ownershlp of the Iradlng company from the Bgnevolent Fund arKI Ihe Trusys Deod was am8nded lo reflect th18 change. At Iha 8&me tlmo,11 was decided to aller th6 namo of the Iradlng company lo 'The Royal Alr Force Charllable Trust Enlerprbses. {RAFCTE). On 1 March 2018, th8 formerTNsl (Charlly Number 2108481 was Irthrporaled by way of a transfer of the assets and Ilablllll8s of thecharlty to a tharltable Incorporatèd oroanlsallon ICIOI l¢harlly number 1176054 & CE0125211. Page 2 THE ROYAL AIR FORCE CHARITABLE TRUST TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2022 Tho fomierTrusl remakns kn 8￿$te￿8 lo ensure Ihal any legacles that may be18ft lo the Trust aro nol losl., a'unillng dlrecllon, wa8 comploled wllh the Charlly Commisslon so Ihal the Trust and Ihe CIO are troaled as o slnglè ch8rlly for ieporllng and accounllng purpose¥. Governancè The Trustees are responslble for Ihe governanc8 of the Trust and thg day-lo-day funnlng of the TNst Is dèlegated lo Ihe Dkeclor orth8 Trust. Tr￿81088 Toullnoly meet In form81 Sosslon 5 Ilmes per calendar year, once wllh the Board of D*ectors of RAFCTE. Mo81 Trust admlnlslralSve aolSvlly Is conducted electronKallyi Includlng Ihg clr¢ulatlon of pollcy documents, the approval of applicallons for grants and varlous olher dlscus$lons. Any subslanllve out-of-oommlllee declslons are ￿nfIrMed al the followingfr)rmal Tw8t Board. Tru8ts0 compel8nce8 are malched to Trust buslness, Trusteos, baGkgrourhY8 Includ8 Industy, law. ¢ommerce, fSnanGe. rlsk. and oharily governance, as well as servlce In the RAF. NewTruslees arerecrulted through several avenues, Includlng Informal nelworks of current Truslees and the RAF, as w611 as moro formal recrullment m6lhod3 u81ng advertls8menis and web31188, Bnd recrullment agenclas. The full Board approves new Tru8le8 appolntm&nts. and ngw Tru8te88 undèrtako an Inducllon proces5 and a b8sIc Iralnlnu packagè. Trustees malntBln th8lr currency through ¢harlly brl8llng updalas 8nd seTVe a maxlmum of 2 terms of 4 years, 8xlendablg only by the full Board. A strategy 18 In place lo ensure tlm8ly arKS approwlale replac6ment$ wlih relevant sknll 8el$. Remuneratlon RAFCTE Staff pay15 consldered each yew by th8 Company's Remunerallon Committee 8nd approved by the Commlttée, whllsl Company Dkectols pay and remunerallDn Is recommended by Ihe RAFCTE Boards and approved by the Tru8le9s. In addlllon. the Trustè88 use equlvalenl ¢rlleria to sel thg pay of the TfU8t 8mployees. Charlly Govornance Codg As usual, the Charlly Governanog Code was revlewed by the TYu81ees durlng th8 year and poli¢l¢s for audlt, rlsk. governance, and granl commllle88 were all updated. The Board of TTusl&es conllnued lo iaad slgnlflcanl slraleoy work for th8 Group, incltjdlng a delalled fulur8 vlslon that sets Group straleglc kntent out to 2026 and $8t8 Ihe wnlexl for a forward looklng RAFCTE Bugln$8s Plan. Fundral8lng The RAFCT had no fundralslng acllvlllos mqulring d18do8uro undar S162A of th6 Charfll88 Act 2011. The Charlty does not door-to-door fundra18e or PToa¢lively seek lo fundralse other than through Ihelr wab8lle and through its key wen18 bul Is graleful of donallon5 that are recelved each yow. The Charlly does nol have 8 fundraislng departm8nl. OBJECTIVES AND ACTIVITIES UPDATE strategy The Trust strategy work that wa8 started kn 2020 r88ulted Ihls year In a formal reftnement of the Trust's mbslon and slated objects. The new m188lon hoadllne, bulldirsg on provlou$ hlgh4evel ml88lon of 'Promole, Support an(1 Encourag8 ', Is 'Promote and Insplre: Piomote the Royal Alr For¢e and In8plrg young people In alf, spa¢e and technology,. To Promote th8 RAF. RAFCTE stage the Royal Inl8rnalk)nal AlrTatloo {RIATI, whlch Iswldely recognl$ed as th8 best mlllw dr show In the world, attra¢llng Iruty glob8J partlclpallon and very hlgh numb8r8 of The pr¢%4ousm1$51onoltht Royl WrForioChariiableTrustwaslop#oMof£ the RoyalAlrForce. loSiIPPORTlts peo￿¢noW1nd1￿tothts fuiure ind ioENCOURAG£ aF-mlndedness¥ndthe a￿atIOn￿lI1¢d oFyounKpeO￿e. Page 3 THE ROYAL AIR FORCE CHARITABLE TRUST TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2022 publlc vl8ltors over the Ihrge day perlod of the show. RIAT Is also a unlque D8fanc8 dlplomaoy and engagèment event, drawlng logglher senlor polltlcal. mllilary ond Induslrlal168dors from around the worfd. Import8nlly, all of Ihls not lu81 promote8 th8 RAF. aNi alr and space more genorally. but every pound of prolt go¢$ to 8UPPOrt the Trust's In8plro ¢harllable ac15vllle5. Plcking up tho Ingplro iheme, the Trust slrlve5 10 inspire young people by fundlrKJ engag8m8nt and development acthJllle8 In alr. $pac8 and technology. Th1$ focLt8 18 on young people, broad￿ aged 5-25 years old, and wilhln the RAF and wlder 80clety, wilh a partlcular emphasls on under-represented communllles. Trusl actlvlly Is spread across Ihree koy ar¢as', enabllng hundrods of young peoplefrom the 4F, RAF Alr Cad818, and more wldely lo lèarn to ffiy and lo Onler the world of englneeflng throu9h flylng and englneerlng scholarshlps; 8pon80Tlng nallonal 8clence, lechnolo9y* englneerlng and malhg (STEM) programmes. and 8upporflng other smaller charllleB whose v•lue8 and alm5 allgn wlth those of Iho Trust. Morever. RIAT hosts the well-gslabllshed Techno Zone, whl¢h Is de81gned lo engage Ihe many thousands Df youNJ people who vlsll the show wllh a myrlad of Intsracllve STEM-focus8ed exhlblt8 and Insplrlng speakers. Th¢ new obleBts, approvod on 15 August 2022. underpln th￿ new mlsslon and are a8 follows: To advanca educatlon In avlallon, space operallons and STEM Subjects. To advance in lrfe young people tlycwgh ev8nls, grants and aollvlll¢$ Ihal provlde ac¢ess lo and Involvement In forward-looking alr and space opporlunlll8s' and that gmpuwer Ihom to conlrlbule to and ￿lfil Ihelr potenllal In sodely. To promote recrultment to and the offlelency of th8 Royal Alr ForGo (RAF) by ￿aoIng the RAF at th8 heart of a pro￿amMa of wwld-class ovgnl¥ and aclfvltle8. The Trus108s are conlgnt that the new obS8cls eonllnue to complemenl Ihe Work underièken by the other RAF Charltles such as the RAF Benevolent FuThJ, the RAF Central Fund, the IVF A8800i8tion. ond the RAF Museum. Grants Durlng the 8ublect y￿. the Trust has been ablo to $UStaln, and then I￿lId from Ils reduced poslllon durlng COVID. Thg prlnc¥)al hlsloTlc awards, funded fulty or In parl by the Trust, have been conf1m￿d a$ In aceordance with th& Trust's new mlsslon and obleol8 and have hence conllnued. Th¢$e hclude 8ubslanlial support to It￿ Royal Alr Force Sport Alrcrall A$8oclallon (RAFSA), the Royal Alr Force Youth STEM organlsallon. Iha Arkwrlghl Trust, Ihe Alr Cadet Organ18allon, the UIyssè8 Trust, and Flying Scholar8hlps For Dlsabled People. In addltlon. as Iheflrst sleps In the dellvery of IheTrusl's more ambSllous slralegy• Iwo new nallonal Inlllallv68 have been commlsslon8d wilh The Smallpelce Trust ￿ Prlmiry Engkneer, both fo¢ussed on the delivery of nallonal STEM programme8 for young people. Th8 Royal Internatlonal AlYTattoo The successful return of RIAT durlng 2022 has glven Ihe TTUStees and the RAFCTE Board conlldence that thelr COVID Tecovery strategy Is robust and 88ls the condlllons for (iellveTing both the Charlly's vl$lon and the RAFCTE Busln¢68 Plan. Over 200,OOD v1811018 ¢nloyed thè world'818rgost mllllary air show. 8ecurlng RIAT'S place In thè annual event calendar, dellverlng flnanolal robu81neBS to the RAFCT Group. and provldlng thè rlghl platform lo launch and then su8laln the Charit￿$ ambSllons. Th1$ 81Jcce8818 down lo Some Immense hard work by FIAFCTE and RAFCT staff, volunteers, the RAF and oveTsoa8 alrforcès, and th8 myriad of support organisallons Involved wllh sts9lng RIAT. Sclenco,T$Chndts8V*En8lneerl￿lnd Mathema￿<*. Page 4 THE ROYAL AIR FORCE CHARITABLE TRUST TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2022 Volunleer8 Under nomal op8ratlng years we would have been dellghled lo w8lcome the thousand8 of dedlcalad Servloe ond clvillan volunteers who make 6u¢h a slgnlllcanl conlrlbullon 8nd wllhoul whos8 help 8nd loy81 support the annual staging of RIAf would not be posslble, Volunleers have been Intrlnsb to the Royal Inl8rnallonal Alr Talloo and RAFCT'S consequent abllily lo support a wlde rang8 of oharflable glvlng slnce the Alr Talloo's Incepllon In 1971, An Alr Talloo volunteer chooses to conlrlbule tlmrf and sklll for the benefit of the annual Alr Talloo and the p8rent charlly, and Ihls evenl would nol ba vlabl8 Wlthout Ih8lr partl¢lpalton. Each yearapproxlmalely 1,200 volunteers suppcwt Ihe Alr Tatloo, many ￿￿[n9 over a woek of thelr Ilme lo augment the small team of pern7anenl and temporary 8laff who organlse the event year-round. There are 8 range of skllls brought by volunleers, 80me are hlghly speoiallsod. Some examples Include those who support alrcraft operatlons. such 05 englneer8. alrcrall refuelllng, and folloW￿e drlvers who help the alrcraft move about RAF Falrford safely, There Is Èlso an experlenc8d and dedl¢aled 10am of Alr Trafflo Conlrollars who ensure that alrcraft are abl8 lo operate 8alely In the alrspace around RAF Falrford. Other rol88 Indude medlcal 8pè¢lall&t8 who run the RIAT ModlGal Centrè and the Slle Team who work bohlnd thè scenes lo ensure Ihal everylhlng Is safely In place when the gatos open lo Iha gen8rd publlc and 011 our vlsllor8 each day. In addlllon lo ourvolunleers, we also rec61ve essential supportfrom the Royal Alr Force Bnd approximately 1,000 ¢ade18 and staff from the Royal Alr Force Alr Cadets, PTovld￿g e¥gentlal'summercamps' forcadels. PUBLIC BENEFIT By Ils conlltwed support for recwllment lo the RAF. the TnJ$t tt)nlrlbule8 towards the sustainmènt of the Servlce and Nallonal Securlly. Furthgrmore, the act￿111￿8 performed, and gran18 awarded by lh8 Trust dlfeclly and Indlrectly promoto th? efflolen¢y of the Royal Alr Force and hfrncè have a poslllve effect on the mllllary eff8Ctlvene8s of the UK'$ alr and Space power. Moreov8r. the Royal Inlernalional Alr TBlloo18 major showcase for Ihe Royal Ar Force and the conslderable International attendan￿ provlde5 a 8lgnlfbanl opporlunlly for UK Defence Diplomaoy and Influence to be relnforced. Flnally, Ihe TNst'8 work lo promot8 an under81andlng of and Inlore$l In alr, 8pace and lechnology. and by ￿￿ICatIon STEM Subjects, also supports the notional eMI￿OYMent bas8 and pro8perlly. Therefore, havlng consklered the relevant Charlly Comml8slon guldarKe, the Tru81ees belleve Ihal IhoT• Is dlrecl publlc b8nefll deTlved from the work of the Chsrflable Trust In the 5U8IBinmenl and effecllvenoss of the Royal Atr Force, whlch conslllules slgnifiGanlly lo the d8fence of the Realm. Addillonally, the Trust enables s￿￿)fICant numbgrs of young people lo further Ihem8elves through flying and englneorlng 8cholarshlps. and ￿an18 that offer the ablllly to lewn about and prw88 In avlatlon and englneerlng. The TNslees ¢onflrni Ihey hav8 consldered Se¢lion 17 of the Charllles Act 201110 have regard to th8 Charity Comml881on'8 guldanGe on publlc b8n6flt. STRATEGIC REPORT ACHIEVEMENT8 AND PERFORMANCE The Tru¥t Mad8 grants lolalllng £218,000 (2021.. ￿71,722). However, In accordance wllh Ihe Group's 2- year COVID Recovery Plan. Ihl8 contlnued lo be an underslandobly much-reduced total when compared to hlstorlcal grant commitments. Nolwllhslandlng, Investment In STEM remained a key focu8 for Ihe Trust bullding on 11$ work ￿th yrwng people through Ils steady support of the RAF Alr Cadets and the RAF STEM Team. Among Ihe $ucc8ssful ctsllaboratlons b&￿e¢n RAFCT and thg RAF'S Youlh & STEM Team Is the lolnl $pon80fBhip of Iho Scouts. staged Alr Aclivlties badgo. Launched al RAF C08ford In 2019, ar￿ due lo run for an Inlllal perlod of Ihr88 years. Ihls ha8 been agreed for another 3 years. Thls partnwship has proved hugety 8ucce88ful In developing new and exclllng STEM-Io¢ug8¢d resources, actlvili83 and events that enabl8 011 Scout 8edlon8, from Beavors lo Explorer Scou18, to explore the secrets and sclence of fSbght wlth over 58.000 badg¢s awarded In 2022 along wllh ovèr SOO,000 enoagoments. Pag8 6 THE ROYAL AIR FORCE CHARITABLE TRUST TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2022 In 2021. dlscusslons wllh our partners gboul how mwe young peopl6 could be engaged In STEM gcllvllles both In the bvlld up lo, and durlng RIAT lead to the creallon and lundlng of the Road to RIAT Cornpellllon. Thls year, the Inlllallve grew lo Indude 300 schoob n8llonwld8 and RAFcf galned a new partner In Accenture who provided a grant donali¢)n to 8UPWt Ond b8com8 Involved In the Inlllatlv9, The STEM days and compelillon are d&llvered In schools and are aero$pac8 and Space ehallenges, glvlng the prlmary 8choul aged slL¢dents chance lo dlscover how s41ders 8nd rocke18 work, and to be Insplred into learnlng more. Subs8quenlly sludenl$ create compèliliim enlrles whlch w511 be judged by an exp8rt panel and the reglonal ￿nnerS wlll compale In a grand Ilnal comptsllllon al RIAT In JLsly 2023. Thls year. tho Inlliativ&will Include'STEM Superstar, sgsslonBwhere schools ¢an lolna vlrlual Q & A sesslon and meet STEM experts. In 2022, RAFCT partnered wlth Primary Englneer. to supporland paruclpate In Prlmary Englneer's Leader8 Award'lfyou were an Englneerwhal Would you t)o' compèlillon. Golng forward, RAFCT wlll be supporled by DXC Technologles wl*) wlll provlde a gwl don8llon to FiAFCT to 8UPPOrt and b8com8 Involvod wllh RAFCT In the competition. Winning enlrles weT8 8howcased al RIAT alongsldg tho Trust's Inspfre Slagg In TeGhn020ne. The compelSllon ha$ nallon81 rea¢h and In 2022 Ihere wer6 over 33,000 enlrle8 from all reglons of the UK. Th8 comp8lllion helps puplls d8v8lop Englneerlng Habil$ of Mind, probtem flndlng, ièallve problem solvlng. vl8uall8lro. Improvlng, adaptlng along wllh crlllcai Ihlnklng skllls and communlcalk)n $kllls. RAFCT continued to 8UPPOrt young people In F14F youth organl8alSons. such as the Royal A* Force Alr Cadets, where the opportunlly to promote team work and loarn new skllls is enhance(I by thalt8nging expedllion8. Arnongsl the seven supported exp¢dlllons thls year. ¢adets from several unl18 in Scouand spent 12 day8 navigallng and salllng around Soollish Islands, some were novlc8s, Somè were worklng toward Ihelr Gold Duke of Edinburgh's Award, bul they all worked as one team. Addltlonallyi RAFCT were one of the prlnclpal Bpon8or8 of the Alr Cadets Annual Alr 8NI Space camp, GRANTS HQ Alr Cadets- Glldlng Opportunltles 15JRPSS 2022 3 JOPSS 2022 5 TUS 2022 UT2836 Derbyshlre Sector RAFAC UT2837 Derbyshlre Sector RAFAC UT2838 UTC Reading CCF UT28511105 (Winchester Arkwrlght Scholar5hlps15) Aviatlon and S ace camp IYWAE 2022 Tranche I FSDP part scholarshl UT2908 1019 Istltlingl Sqn UT2902 282 (East Ham} Sqn UT 2936 Brlstol and Gloucester Prlmary Englneer IYWAE Tranche 2 -£15,902 £46,650 £9,330 £13,250 £744 £943 £1,5DO El,400 £11,500 £10,000 £29,000 £1,500 £2,500 £2,250 £5,333 £81,000 £216,900 £200,998 Sqn RAFAC -£15,902 Pag8 6 THE ROYAL AIR FORCE CHARITABLE TRUST TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2022 Royal Alr For¢9 Charltablo Trust En￿rprI￿￿- Royal Intgrnatlonal Alr Tattoo Lasl yearf8 RIATwa$ tha flr818how SIr￿ 2019 dua to COVID-19 aThJ. happity,11 w28 a huge success, wllh all days selllng out for th8 first Ilme ever. Over 200,000 people conlrlbuled to the blggest RIAT of all Ilm8 wtlh 60 senior mllllary delegallons from around the world. Inoludlng 48 Chlefs of Air Foro8s acro88 the weekend and, 88 alway8, a ple11￿ra of alr¢raft from across tho globg. Flnan¢lally. the 8ucce58 of RIAT22 alded the flnan¢lal recovery ofRAFCTE as annual profll8 of£2,027,015 were achleved. Howevar.118hould also be recognlsed that desplle opllng to 8V8nlually cancel boih RIAT 2020 and 2021. a large amount of customers who had bought Ilckels prlor lo ¢an¢¢llallon elected lo roll over thelr admlsslon. whlch was a slgnlHcanl benefll In a challgnglng Ilm&. Inèvltably, Iherewer8 some teelhlng PTobl8ms wllh lh8 flrst show In Ihree years. RIAT22 saw lfrmper8lures al th¢ alrfleld reach 40 degrees, whlch helghlened concerns of 8taff. volunleeTS, and customers about p8opla'8 welfare. Also, developmen18 In the use of mobllè technology has pul evernore prèssure on wl-fl and Inlemel acc888. A subslanlial amount of work has gone Inlo reclrfylng these Issues where po$$lbl8 ahead of RIAT23 and FiAFCTE are conlldent of a furlhef 8uc¢essful Tattoo. Looklng ahoad to 2023 There are sllll after-gffecis from the pandemlG. as well as new challenges that hav8 emerg8d thls year. Tho unavallabllliy of global Insurance lor COVID-191communicable dl8eas9 remains a ch￿lenge, as Is the current war In Ukralne. Accordlngly, Ihls, and any other World event8 are conllnually monltored, More speclflcally, Ihls yoW'8 show wlll bg eantred around our Skytanker Ihome. whtch recognlsgs the 100- yesr onnlver88ry slnce the flr31 atr-to-ak refuelllng manoeuvre was compl818d. Olhtsr hlghllghls Indude the Itallan Alr F{￿Ce celebratlng the￿ own Csnlenary whlch wlll be marked wllh an oxten$lv# $tall¢ dlsplay. RISKS The recently Implemented updated rlsk polloy and revised rlsk frameworks conllnue to mature and are ullllsed regularly throughout the organFBallon. Led by the RAFCT Flnance, Audit and Risk A$8urance Commlllee and the RAFCTE Audlt Commlliee, there Is 81ringent audtt ond monllorlng of key Rlsks lo both the Charity and th8 wdei Group. R18k 8eveTIty and mlllgallon acllons are roullnely monllored, Includlng dallberate and Inadverlenl dlsruption lo. or cancellallon of RIAT, FINANCIAL REVIEW Durlng Ihe year RAFCTE and thg Charity ptaced surplus cash on flxed term bank deposll when￿or cash flow predlcllon allowed. Thls genoraled a return of £7,581(2021.' £616). Desplle Ihe operatlng1088 durlng Flnan¢lal Year 20121. the'Thre8 Recove￿ Bu81ness pian Implemented by th6 Group ha8 ￿elded po6lllve re8uIts and Bupporlad by the flnancial 8ucceB8 of RIAT22, the Group remalns In a stable flnanclal position. FIna￿la7 reslllence was bolslered In advan¢¢ of RIAT22 wllh the supp¢Jrt of a 6-yoar CBILS loan In Septgmbèr 202181 £1.530,000, as of Seplemb8r 2022 Ihe value of Ihp CBILS loan was £1,224,000. The80 funds and financlsl In81rum8nts wlll help lo malnlaln the Company's oporallonB throu￿ the or4Jolng crls18 and have enabled th8 Group lo ¢onllnue lo manage the Ih]uSdfiy rlsk by malnlolnlng a balance betwèen the oonllnully of fundlng and flèxlblllly through the avallabllty of adequate cash raservas. Consolldaled (l.e. foT both Ihe Trust and the Tradlng companles) Income for th8 perlod was £13,549,088 (2021.. £608,883) of whiGh £13,367,462 (2021.. £608,833J related lo the tradlng acllvlll88 of RAFCTE and £NIL 12021.- £NILI lo SAL. Expendllure for the p8rlod was £11,855,978 (2021.. £2,552.744) of whlch £11.490,447 (2021.. £2,451,636) was 8llflbutable lo RAFCTE. Thls resulted In nèt profll of £1,693,107 (2021., deficll of £1,943,861}. The expendllurè by RAFCTE Is prèdomlnalely assodaled with the Blaglng of RIAT whlch (18llv6rs lo th& Trust'8 oblectlve of promollng the Royal Alr Force. Scamplon Alrshow Lld (SAL) dld not tradè in the perlod. These costs can Iherefore b8 con81d8red as a cost asso¢laled wlth the group'8 exp8ndlluro on dèliverlng the charltgble activitles of the Trust. Page 7 THE ROYAL AIR FORCE CHARITABLE TRUST TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2022 Th8 Trust aclivlty Is shown In the financial slalemants. Gross Income to the Trust In the year was £181.624 (2021.. £9,557) of whlch £160,000 (2021., £Nil) was cov8nanted from RAFCTE. RAFCT operallng and vernance costs wwe £8,210 (2021." £8,396) and grant8of£200.998 (2021.. £27,186 credll8d backlo lh8 Trust). Consolldalod nel as8els w8r8 £3.213.020 (2021.. £1.519.913) at Iho balance 8heetdale. of whlth £440.707 (2021.. delkit £1,586.308) represgnts de3ignaled funds. The Tru8toe5 ¢0n$ldèr Ihal, despllo the cancellallon of RIAT 20 and RIAT 21 the 8uccess of RIAT22 underpln8 the belief that both the Trust and Its Iradlng 8ub81dlary RAFCTE are flAanttlally healthy and woll plac8d not only to meet the demand8 of on-golng flnanclal commllments, but a180 to take advonthge of opporlunttles that may arlse in fortheomlng years. Tha flnanclal statemen18 comply wllh current slalutrJry requlremenls, th8 Slalement of Recommended Pracllca IFRS 1021 and the Trust'8 CIOArticl8s and Mamorandum of A550clallon dated 1 D8cember 2017. The flnandal 81alemenls have also b88n prepared wllh duè regard lo guldance publlshèd by the Charllles Comm5sslon on the operallon of the Publlc Benefit. RESERVES POLICY RAFCTE Iradlllonamy provldes tho maln revenue for tho Trus1 through a rango of actlvltles In¢ludlng tha Royal Inlernallonal AlrTalloo and olh8revenl managèmentaclSvllles. Salès of m8rchandlse. As profits from RIAT have hlslorically been Impaoled by Indemenl weather, and of lalé. Iwo (ancellallons due to COVID19, the Trustees have Increased the valu8 of the reseNe8 substsntlally lo provida prudenlflnanclal roslllènce for unknown future events Ihal RAFCTE Is unable tr) in3ure agalnst: COVID. WAR Et¢. Of note, and alignèd the Group COVID recovery plan, the RAFCT Board approved a De81gnated Inv981m6nl fund of £1.7mllllon lo provide the worklng caplial requlred to fadlliale RIAT22 to RAFCTE. The Group annu81ty r•vlew8 the reservos pollclè$, and the correspondlng the rè8erv8 balances, 8galn$t tho slialeglc dlrecllon of both Ihg RAFCT and RAFCTE, and to further ensure both $lraleglcally placed lo rfyact to exlernal lor¢g$ such 88 a partial or full C￿ce￿allon. The reserve8 polloy conslsls of three subcalegorles: Inveslment lo further the charltab18 purpo$88. Worklng Caplial Managomenl re5¢rv¢ In r88ponsg to future Income volallllty. Exlt Contlngency. After the succo$$ful delivery ofRIAT22 allgned wllh Ihe recovery bu8ine88 case, Ihe RAFCT Board remalns confident RAFCT Is In a go￿1 posllion to conllnu8118 work and meot Ils alm8 and Intent. The Trustees nole that al the yearond the Trust reserves lotalled £2,922.31312021.' rJ,106,221} of whlch £100 Is reslrlcled {2021.'£100).' Unre8lrlcled reserves areallo¢ated between de8lgna18dfunds (Breakdown Below) of£2,052.637 (2021.. 2.052,537), and free fesgN8s £869.776 (2021.. 1,Ob3.686). Dèslgnated Fund £1.700.000 lo further the Charllabl& Purpose. £315,763 Worklng Capltol Management ReseN8 and £36,774 wa8 for an ¢xll conllng8ncy. Wllhln Ih08e resgrve$ th8 Trust's cash bal8n¢¢$ lotslled £1,602,54312021., £1,906,681) agalnsl whlch th8 Trust has made Grant ¢ommllm8nts that have yel lo be pald of £155.988 (2021.'£146,493). wllh uncommllled and Ilquld funds therefore of £1,066.125 (2021.- £1,259,528). Cash ReBerve$ ar8 hel(l above the mhlmum reqltlremenls lo ensure RAFCT and RAFCTE are flnandally posll¢on8d for new finanelal challenges that cannot be In8LYed agalnst. PLANS FOR FUTURE PERIODS Tha Board of Trustees, declslon lo updale the Charlty's objects arsd ml38lon, comblned wllh Ihe succes¥ of a relumlng RIAT. all provldo real momentum lo Group 81ralegy and direcllon, Lty)kI￿ ahead lo the next Page 8 THE ROYAL AIR FORCE CHARITABLE TRUST TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2022 nanclal yoar. th8 Trust88s and Ihe RAFCTE Board are ¢onslderlng furth8r r8fin8ments In Group strategy and re8ulllng buslness pians, Gommansurale wllh Ihelr amblllon to: Conllnu8 lo secure the futurn of the Chadty and RIAT follo￿n9 the financlal stress of COVID. Further onhance Ihe Talloo lo broaden publlc app&81. and Incorporate o clearfocu8 on Space and suslalnabl6 avlauon. Foous more charllable acllvllias al Ihe Natlonal Iw81, hence maxlmlse the profile and Impact of th& Charlly. In Ihls, Ihe Group wll r¢m8ln fulty eng8ged wlth th8 RAF, the other RAF Charlll88, the Alr C8d&l Organlsallon and our key porlner8. Moreover, Trusteès al￿ anllclp8te that, followlng the SUCC￿8 of RIAT22, charltabla gran18 wlll Insvease from re(Juced COVID.Induced levels. 8tat•mont of TYusté•s' rè8ponslbllltlo$ The Tru8le8s are r6$ponslblg f(x prèparlng the Trustees. Annual Report the financlal slalemenls In Accordance wllh appllcabl8 law and Unlted Klngdom Generally AGc8pted Accountin9 Practlca (Unlled Klngdom Accounllng Standards). Charlly law r8qulre8 Ihe Trustees lo preparo flnon¢lal slaiem8nt8 for each flnan¢lal year. Un(ler that law Ihe Tru81ee8 mugl nol approve the financlal statements unless they are 8all8fled thal Ih8y glvè a true and falr vlew of Ihe Glale of affalrs of the Charlly and the Group and of the Incomlng resources and application of resources, ollho Groupfor Ihal perlod. In PTeparMig Ih88efinanclal slalemenls, IheTFU8lees aro requlrBd lo.. select sullable acoountlng polld6s and then apply them oonslstanlly; observe the m&thod8 prlncipl88 In the Charllles SORP.. make ludgemenl$ and e811males Ihal are reasonable and prudonl,, • stale whether appllcable UK accounllng standards have been followed, sublecl lo any mal8rlal departures disclosed and explalned In the finan¢lal 81al8menl8', and prepare the Ilnan¢ial statements on the golng conrknrn basls unléss11 Is Inapproprlato lo pre8umtt that the CharSty wlll conllnua In bu81nes$. The Trustees *e r68ponslblè for keeplng adequale accounllng records that are 8ufflclenl 10 8how 8nd explaln the Charlly's transactlon8. disclose wlih reasonablo a¢¢uracy al any timo the flnancl81 po8lllon of the Charlty and enable them lo gn¥ure that Ihe flnanclal statemanl8 comply wllh the Charlllè8 Acl 2011, Ihe Charltles (Accounts and Reporis) R8gulallons 2008 and the provlslon8 of the Charlly's conslllullon. They are also responslblts for safeguardlng tho assets of the Charlly and the Group and hence for taklng reasonable steps for the preventlon and delectlon of fraud and other Irregul8rllie8, STATEMENT AS TO OISCLOSURE OF INFORMATION TO AUDrroR8 So far 88 the Trustees are awwe, there Is no relwanl ￿di1 Informallon (as deflned by Secllon 41812) of the Companle8 AGI 2006) of which lh8 ￿0Up,$ audllors are unaware and each Tiustee has taken all the slep¥ that he or she ought to have laken as a Trustee In ordar to mak6 hlm8elf or hersdf aware of ary relevanl 8udll Informalion and lo 88labllsh that the group's audllm are aware of that Information. The Tru8lees' Roport and Strateg1¢ Report Is slgned on behalf of the Tru8tee8 by.. Alr Mar Phlll sborn CBE Date . Page 9 THE ROYAL AIR FORCE CHARITABLE TRUST INDEPENDENT AUDITORE REPORT TO THE TRUSTEES OF THE ROYAL AIR FORCE CHARITABLE TRUST Oplnlon W8 have audlled the flnanclal 8ts1•mènts of The Royal Alr For¢e Ch*ltable Trust (Ihe 'parenl charlll) and115 subsldlarfe8 (the 'group'l for the year ended 30 September 2022 ￿1¢h comprlse the Con801idaled &lalement of flnanclal 8¢livllle8. the Charity 81alemenl of finen¢lal act1￿1188, the Consolidated balance sheet, the Chorlly balance she81, the Consolldaled statement of cash flows snd the related note$. Includlng a 8ummary of slgnlficanl accountlng pollcles. Th8 finandal reportlng framgwork that has been applied In Ihelr wepafallon 1$ appll¢8blo Faw and Unlled Klngdom Ac¢ounllng Standard8, Including Flnanclal Reporlkng Standard 102 Tho Financlal Reportlng StandaTd applic&bl8 In Ihe UK and Republlc of Ireland, (Unlled Klngdom Generally A¢¢eplgd Accounllng Practlce). Th8 financlal stalemenls have been prepared In accord8nce wllh Accolnfjng and R8portlng by Charllles preparing Ihelr accounts In ac¢ordance wilh the FIDanclal Roporllng Sland8rd8 appllcable In the UK and Rapubllc of Ireland {FRS 102) In prefererKe to the Accounllng and Reportlng by Charlll8s: Slalement of Recommended Pracllce1s8ued on 1 Aprll 2005 whkh Is referred to In the extant regulallons bul ha3 b&en wllhdrawn. Thls has been dono In order for th6 accounts to provlde a true and falr vl8w In acoordane8 wlih the Generally Accepted Accounllng Pra¢ll¢a eff8cllve for Teportlng perlod8 beglnnlng on or after 1 January 201S, In our oplnlon the financlal Statements.. glvo a Iru¢ and falr vlew of the ¥18te of the Group'$ and of the parent charilrf$ affalr8 a8 at 30 September 2022 arHI of the Group's In¢oming r880urces and appllcalksn of resourc￿, Inctudkng Its Income and xpendllure for the year Ihon ended; have been properly prepared In accordance ￿th Unlled Klngdom Gen8rolly Accepted Accounllng PrAcllce; 8nd hava b8en prepared In accordance wtlh tha requkemenls ol th6 Charllos Act 2011. Ba$1$ for oplnlon We conducled our audll In accordanto ￿th Intarnallonal Star￿ards on Audlllng (UK) (ISA8 (UKI) and applicable law. Our respon8lbllili95 under those standards ar8 furth8T de8¢rtbed In the Audltor's respon$ibllllle8 for the audlt of Ihe flnanclal statements seollon of our report. We are kndep8ndenl of the Group In accordance wllh the elhical requlrements that arè relevanl to our audll of the flnancial 8latem6nl8 In the Unlled Klngdom, I￿￿ding the FlnanGlal Reportlng Councll's Elhlcal Standard, 8nd we have fvlfilled our other elhlcal rèsponslbllllles In accordanc8 with Ihese iequlrements. We belleve that the aLKlil evldonce we have oblalngd 1$ sufficlenl and appropriate lo wovlde a b8515 for our oplnlon. Conclu$lon8 rolatlng to yolng ¢onwn In audiling the flnanclal slatornents. we have concluded that th¢ Tru81888' use of the going concern ba81s of accounting In tho preparalion of the financlal $lal6menls18 appropriate. Based on the work w8 have performed. we have not Idanllfled any materfal U￿artaInlI88 relatlng to evenls or condllion6 that, individually or colleclively, may ca8t 8lgnlllcant doubl on the Group'6 or thè parent charllrfs ablllly to contlnua as a golng concern for a peik4J of at least twelvo month8 from when Ihg fin￿￿181 $ialemenls are aulhorlsed for i88ue. Our responslbllSlles aNI Ihe respMslt411Mos of the Trust88B wllh re8pect to golng concern are de80rlbed In the relevant secllon8 of th1$ report. Page10 THE ROYAL AIR FORCE CHARITABLE TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE ROYAL AIR FORCE CHARITABLE TRUST {CONTINUED) othor Infomiatlon Thè other Informatlon comprf5e5 Infomiallon Induded In th8 Annual report olh6r than th8 Ilnanclal Statements and our Audllols report Ihereon. The Trustees are rè8POll8lble for the other Information ¢ontalned wllhln the Annual report. Our oplnion on the flnanclal slalements does nol cover the ollw Information and, except to the exlenl oihemlse 8xpllciUy slatad In our report, we do nol express any form of assur8nce concluslon theroon. Our r¢spon81bllily Is lo read Ihe other Inform8llon and, In dolng so. conslder whelher the other Infomialion Is matertally Inconslslenl wllh the Inan¢lal statements or our kn￿edge obtalned In Ihe course of Ihe audll, or olherwlse app88rs to b& malerlally mi88taled. 11 we Idenllfy 8u¢h materfal InconslslencleB OT apparent material mi88taloments. we are required to deleTmlno wh8lher Ihls gfves rlse lo a material mlsslalement In lh& flnanclal statemenls Ihomselves. If, based on Ihe work we have p8rformed, w8 condude Ihal there Is a mater181 rnl$stal&menl of Ihls other Inform8llon, w6 are requlred to report that fact. We have nolhlng lo reporl In th18 regard. M8tt¢r8 on whl¢h we aro roqulred to report by ￿CeptIon We have nothlng to r8POrt In respect of the follow￿9 mallers whero th8 Charili8s (Accounts and Reports) Regulallons 2008 requkès us lo report to you If. In our oplnlon: the Informallon glven In the Tru81ees' report 13 In¢on818tent In any malerlal iesp#ct vAlh the flnanclal slalements; or the parent Charlty has not kept sufficient accounllng ts¢ords', or the par8nl Charlty flnanclal statemènts are not In agfeemènt wllh tho *¢ounUng records and reltsms., or we have not recelved All Ihe Information and 8xplanailon8 ￿ requlre for our audlt. Ro8ponslbllltle8 of trutytèeg As explalned more fully In the Truslges, responBlbllitles 8talemenl, the Tru81ees ar8 responglble f4)r the preparallon of Ihg flnanclal statements whloh glv& a true and falr vlew, and for Such Inlemal oontrol as th8 TN8tees deleimlne 1$ necessary lo enable the preparatlon of fknanclal statements that are frea from materlal m188tatemenl, whelher due to f￿￿ or error. In preparlng the flnanclal stslemonts, tho Trusle88 are r05ponsble for ass6sslng Ihe Group's and thè parent Charltls ablllly lo conllnue a5 a wlng concern, dl$¢loskng, a8 eppllcablè. rnallers relaled to golng ooncern and u$lng the going concom ba818 of aC￿￿ntIng unless Ihè Trustees ellhar Intend to Ilquidale tho Group or tho parent charlly or lo cease operatlDn8. or have no reallstlc all¢malive bul to do 80. Page 11 THE ROYAL AIR FORCE CHARITABLE TRUST INDEPENDENT AUDITOR'8 REPORT TO THE TRUSTEES OF THE ROYAL AIR FORCE CHARITABLE TRUST (CONTINUED) AudltoV8 r•sponslbllllle8 lor thg audlt of the Ilnanclal $ta6ments We havo b88n appolnled as audllor under secllon 151 of Ihe charl1￿5 Act 2011 and report In aocordanea wlth the Act ond relevant regulallons made or havlng effe￿ Ihereunder. Our oblectlve$ are to obtaln reasonable a$8urarKe ab￿J1 whether tho fmanclal slalemants as a whole are freo from malorlal mlsstalemenl. ￿elher due lo fraud or error, and to Issue an Audllol8 reporl IhBI Indudes our oplnlon. Reasonable as8ur8nce Is a hlgh 18vel of assurance, but Is not a guaranl8a Ihal an audll conducted In cordance wllh ISA$ (UK) wlll a￿ayS detect a malerlal misslatemenl when 11 exlsls. M188talemenl8 can arls8 from fraud or error and are ￿nSIdered malerial If, Indfvldually or In the aggregate, Ih@y could reasonably be axp¢¢led lo Influencè the economlc dacislons of users iak¢n on the basi8 of these flnandal statem¢nl$. Irregularllles, Including fraud, are Instancès of non-complian¢e with laws and rogulatlons. We de51gn procedure$ tn Ilna wllh our responsibilities. oullln8d abov&, to delecl malerlal mlsslalements In rèspect of kregularilles. trt¢ludlng fraud. The exlent lo whlth our proc8durès are capable of delectlng Irregulartlles, Includlng fraud Is d6la118d below.. W8 oblaln8d an underslandlng of the legal and regulatory framework8 wllhln wN¢h the ¢ompany operates, focuslng on those law8 and regulallons Ihat hav8 a dlrecl eflecl on the determlnation of malerfal amounts and dlsc105ur88 In the flnanclal 8talemenls. The laws and regulallon8 wo consldared Sn thls context were the Charllles AGI tog8lher with the Charllle5 SORP {FRS 102). WB assessed Ihe Tequired compuance ￿th Ihgse laws and regulalTon8 as paTI of our audit procedures on the rdaled financlal 8lalemenl Items. We Identlfied the gr8ale81 rlsk of malerlal Impact on the flnandal 8falem8nts from Irre￿I￿rItIes. Indudlng fraud, lo be the ovgrrlde of control3 by managemonl, cut-off of Income recognlllon, merchandisa and pmgramme sales. Our audll procedures lo respond lo Ihe8e rl$ks Ineluded enqulrles of manag8menl about Ihèlr own Idenllflcallon and assessment of the rlsks ol Irregjlarltles, samplè losllng on the posting of journals and reviewlng aceounllng 8sllmales for bla8es, daslgnlng audll procedure8 to lest the Cut￿ of Income ￿ mèrchandl8e and programme 8ale$, revlawing regulatory ¢orrespondencg and rvadlng of mlnules of meellngs ol Ihose charged wllh governance. Owlng to tho Inherent Ilmltatlons of an audll Iher818 an unavoldabl8 rl8k Ihat we may not have dotected some materlal mlsstalemenls In the Ilnanclal slalem6nl8, even though we have properly plannèd and performed our audll In accordance wllh audlllng Standards. We afft not re8pon81ble fc* prev&nllng non.compllance and cannot b8 expected lo d816Gtnonwcompllance wfth all laws and regulalh)n8. Those Inherent Ilmllallons arg partkularly slqnlficant In lh8 case of mbslatemenl resullkng from fraud as Ihl8 may Involve soph1811cated $ch8mes design8d lo avold dete¢tlon, Includlng dellbarale f8llure to record Iransa¢llon8, ¢oIIu8ion or lh¢ provision of Inlentlonal mlsrepre8entations. A further des¢flpllon of our respon81bllllles for the audit of the Ilnanclal slalemenls 15 located on Ihe Flnan¢lal Reporting Councll's webslte at.. audll Thls descrlpllon forms part of our Audllorf$ report. Use of our rnport This report Is made solely lo the chaTllrfs Iw8lees, as a body, In accordance wSth P&t 4 of the Chartllos n of the assets, See Note 13 ft¢T tha Car￿ng amounl of tanglble fixed assets and Note 1.0 for tho useful Ilves for eaoh da3s of a88el. 2.2 Recover#blllty of debtors The Group and Charlly mak88 an esllmale of the recoverable value of trad8 and otheT debtors. When 888esslng Impatmient of Ir￿je and other deblorg, managemenl ￿nsId￿r3 factors Includlng Iho Current credll rallng of the debt￿, the agolng proflle of debtors and hislorlcal Oxpgrien￿, Sea Note 15 for the net cafrying ￿0￿nI of the debtors. 2.3 Hlgtorlc tccruals In the Instances Kther0 Involces are not re￿1ve{l In relatlon lo SèNlc*s that hav8 bean pmvkjed to Th6 Royal Alr Force Charitsble Tru81 Enlerprlses and Scamplon Airshow Llmlled. the Group make$ an estlmate of the expected Gosl lo the Companies, When assesslng the value of the80 8CCfualslprovlslon¥. managemenl ¢onslder8 prevlous Snvolc8s relallng to slmllar 8ervE¢es ond dl8CU88lons held ￿th the thlrd parlles In relation lo the expeoted Msts. Wh8re Invoicgs havè noi been received for 2 years. the accruals and provlylons are Wflllen down over 5 years. See Note 16 for induslon of the year end. 2.4 stock 1118 necessaryto ¢onslder the recoverabNily of the cost of flnlshed goods and Ihg as8oeialed provlslonlng requlred. Wh6n calculallng Iho slo¢k provlslon, man#gemenl conslders Ihe nalure and ¢ondillon of the stock, as well as applwng a8sumptlon5 around anllolpatgd salèablllty of flnlshed x¢ds, gee Note 14. Page 23 THE ROYAL AIR FORce CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 Income from donatlong and grants Unre8trlcted funds 2022 Total fund8 2022 rolal lund8 2021 Donatlons Gov&rnm8nt grants 28.477 28A77 9.248 364.638 Total 2022 28.477 28,477 373.886 Tol812021 373,886 373,886 In¢ome from other tradlng actlvltle8 Incom0 from non ¢harltable tradlng actlvltl UnreBtrl¢ted funds 2022 Totsl funds 2022 Tofal funds 2021 RIAT Income Olher Incomo Tradlng Income )n8ullancy Income 13,319,718 13,319,71B 7,145 7,145 186.165 18I166 57,272 165.53g 11,570 Total 2022 13,513.028 13,513,028 234.381 Total 2021 234,381 234,381 Pagè 24 THE ROYAL AIR FORCE CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 Inv¢8tment In¢ome Unrestrlctad fund8 2022 Total fund8 2022 Tolal fvnds 2021 Investment Incom 7,581 7,581 616 Total 2022 7,581 7,581 616 Total 2021 616 616 Expgndlturo on ral$lng fund8 othgr tradlng oxpon$es Unrosirlcted funds 2022 Total fund8 Totol funds 2021 RIAT 8xpendllure Interest pald Admln costs Consultancy exp8ndhtur& Payroll costs Depreclallon 8.577,428 42,856 786.701 8,677,428 42,856 786,701 1,253 668.827 11,570 1.861,809 78.075 2.190,e80 49,106 2.190,080 49.106 Total 2022 11,646,771 11,646,771 2,5ri,534 Tofal 2021 2,571,534 2,571,534 Page 26 THE ROYAL AIR FORCE CHARITABLE TRU8T NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 Analy81s of oxpendlture on charltablo actlvltlos 8ummary byfund typè Unregtrlcted fund8 2022 T¢)tal 2022 Tolal 2021 Charllable aollvllles 209.208 209,20 f18,790J Total 2022 209,208 209,208 (18,790) Tolal 2021 (18,790) (18,790) Th8 Royal Alr Forcè Charltable Trust cancalled or returne(18 numt*r of grants for the year andad 30 Seplemb¢r 2022 and 2021 as a resvll of Covid-19 meaning Ihe grantee8 could not undortako the acllvlties for whlch the ￿antS were orlglnally granted. Th1$ has resull8d In a cre(111 balance wllhln charitable acllvlties expèndilure In 2021, Th8 lolal number of grants the Royal Alr Force Charllable Trust had ielurned lo11 werg £15,902 {2021.-£198,908)- An8lysS8 of expondlturn by actlvltl88 A¢tlvltle8 undèrtaken dlr8ctly 2022 Total funds 2022 Tol81 funds 2021 Charllabie aGliv61188 209,208 209.208 (18.790) Total 2022 209,208 209,208 (18,790) Tolal 2021 {18,790) (1&790) Page 26 THE ROYAL AIR FORCE CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 Anoly818 of expendlture by a¢tlvltle8 Icontlnued) Analys18 of dlroct e08t8 Supporl ¢08t8 2022 Total funds 2021 fund8 2022 Grant expendllure Governance costs 200,998 8,210 200,998 8,210 (27.186) 8,396 Total 2022 209,208 209,206 (t8, 790) Total 2021 (18,790) (18,790) Included ￿thIn goveman¢e ¢0818 above for th8 charlty 1$ £907 (2021.. £896) of travel and subslstence costs and £7,303 (2021.. £7.510) of profosslonal fee8. No granis lo kndlvlduals were pald durh)g Ihe ￿. Audltorfs remunaratlon 2022 2021 Fees payable to tho Charills audltor In respect of: The audlllng of the acC(￿nIS of tha Charily The audlllng of the accounts of th8 sub8kllary énllty AU 88suran¢8 8erviGes not knclvded above 3050 15,300 3,550 8,500 11,950 3,776 Paga 27 ROYAL AIR FORCE CHARITABLE TRU8T NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 10. Staff costs Group 2022 Group 2021 Charlty 2022 Charlly 2021 Wages and salarle8 Soclal secwlty Gosls Conlrlbullon to deflned conlrlbullon penslon schemes 1,911,388 197,365 1,624,573 145,178 116,467 8,182 92,478 6,788 81,927 92.058 4,628 4,200 2,190,680 1,861,809 129,277 103,446 Durlng the year there were redundanoy. lermlnalion payments and roslnjclurlng costs of £NII (2021.. £160,506) relation lo agreamanls mgde wlth employees to end employment ¢onlfa¢ls, There was £NII outstandlng al Iha yèar end (2021.. £nll). In addlllon to wages and salarles, costs lotalllng £48,102 (2021.. £55.576) wern Incurred In relalk)n to self employed oontractors. The average number of Per￿n$ èmployed by the Charlly durlng Ihe year was a8 follows: Group 2022 Group 2021 Charlty 2022 Charlly 2021 No. Alr 8hows Olh8r 39 37 41 Pago 28 THE ROYAL AIR FORCE CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 40. Staff cost# (¢ontlnued) The numbar of emkloyees whose employee benefll$ (ex¢lu(Mng employer penslon costs> exceeded £60.000 was: Group 2022 No. Gmup 2021 In Ihg band £60,001- £70.000 In the band £70.001- £80,000 In Ihg band £80,001- £90,000 In the band £90,001- £100.000 In band £100.(N)1- £110,000 In the band £110,001- £120,000 In the band £150.QC11 - £160,000 In the bond £180.001- £190,OOD IndLKled In tho above 16 1 employeo of lh8 Charity Included In the £70,001 - £80.000 bracket (2021.. £60,001- £70,000). The Senkn Management Team of the Group are deemed lo be th8 Dlretttors of each enllty Ond Ihe Tru¥l Dlreclor. The romuneratlon for Ihgse teams arn￿nted lo £7S5,780 (2021.. £697.834). Thls Is InduAlvfj of employer'8 natlonal Insurancg and penslon casl8. 11. Tru$teos' ramungmtlon and expenses Durlng Ihg year, no TfUStee3 Tecefved any remunerallon or other benefit8 (2021.. £NII). Durlng year. expenses tolalllng £243 were relmbursed or pald dlreclly to 3 Trusle?y (2021.. £694 to 4 Trustses). Theso related to travel and subs151en¢e and prof8sslonal fees. Page 29 THE ROYAL AIR FORCE CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 12. Tanglbl&flx¢d as8ats Group and Charlty Fre9hokl property Motor Flxturng and vohlclog Ilttlngs Total Cost or valuatl¢>n At l October 2021 Addlllons 1,063,394 82,763 84&808 36,8tr1 2A62,965 36,86Y AI 30 September 2022 1,663,394 S2,763 683,676 2,399,832 Dèpreclatlon Al 1 Octob6T 2021 Charge for the year 512,520 23,712 38,183 5,841 628,861 19,653 1,179,564 49,108 At 30 S8p18mber 2022 536,232 H024 648A14 1,24670 N•t book value AI 30 September 2022 1,127,162 B,739 35,261 1,171,162 At 30 Septsmb&r 2021 1.760,874 14,580 17.947 1.183.401 The nel book valuo of freehold land and bulldlngs kncludos £477.550 (2021.. £477,650) of larnl whl¢h 1$ not depredated. Page 30 THE ROYAL AIR FORCE CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 13. FIx8d a8Set Invostment8 Invgstment8 8ub8ldlary Compan108 ChaTIty Cost or valuatlon At 1 Octobfjr 2021 1,700,100 At 30 Seplemb8r 2022 1,700,100 Net book valuo At 30 Sepl8mber 2022 1,700.100 At 30 Sept8mbor 2021 1,700.100 RAFCT made an Inveslm8nt In RAFCTE lotalllng £1.7m (lurlng the yoar endlng 30 Seplemtser 2021. Tho Charlly dso own8 £100 of Sh8re ca￿￿1 In SAL a dormant 8ub81dlary. For delalls of sub81dlarle8 see Note 22. 14. Sto¢ks Group 2022 Group 2021 Flnlshed goods and goods for re8al8 44,683 96,693 Sto¢k18 81ated after a provlslon of £26,264 (2021.. £6,781), Page 31 THE ROYAL AIR FORCE CHARITABLE TRU8T NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 15. Debtors Group 2022 Group 2021 Charlty 2022 Ch8rlly 2021 Duè wlthln one yèar Trade d8btOFS Prepayments and accrued Income Tax recovgrable 4,421,263 260,420 332,749 394,763 419,274 14.353 2,014,432 828,390 1& Crodltors: Amounts falllng due wlthln one yoar Group 2022 Group 2021 Charlty 2022 CharRy 2021 Bank overdrafts Bank loans Trade Cfeditor8 Amoun18 owed lo group underlaklng8 Corporalk)n 18X Olher laxallon and 80Glal 8ecurlly Other credHors Accvuals and doferre(I Incom8 GTants accrued- Inslliullonal 4,148 306,LIOO 78,451 4,148 331,000 465,180 217,214 343.673 63,379 48,628 20,624 3,636,202 165,988 63.379 103. 163 18,080 4,446.395 146,493 4,760 2J78 155,988 4,316 1,930 f46.493 4,620,981 5,166. 109 380,330 600,560 Group 2022 Defori8d Income at 1 Oclobèr 2021 Resources def8rred durlng the ye Amounls released from prevlous periods 4,206,117 2,627,742 (4080,967) 2,802092 Induded wllhln deferrod Income arg amount8 whlch re181e lo future p8rlod8 bednnkng on or after 1 October 2022. Pag8 32 ThE ROYAL AIR FORCE CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 Note 16. Icontlnu8d) Recon¢lllallon ol grant er•dltor8 . Group and Charlty Group and Charlty 2022 Commltmenl8 81 1 Oclober 2021 Grants awarded In the year Grants pald In Ihe ye Grants dawed back In the year 146,493 216,900 1191,603) (1J,9021 Commltmonts at 30 Septomber 2022 15S,988 17. Credltor8: Amount6 falllng duè altw more than one yoor Group 2022 Group 2021 Bank loan8 893,000 1,224,000 Included wlthln Ihe abov0 ara amounts falllng due as follow8: Group 2022 Gmup 2021 Belwoon one and two years Bank loans 306,000 306,000 B¢lw•en two and Ilw year8 Bank lo￿6 587,OlYO 918,000 Over Ilve yearn Secufad loa The tol81 bank loan Is on a repaymenl bas18. The oulsl8ndlng balance of £1,224,000 Is spllt befven credlior8 due less than one year {Nole 181 and credlior8 due over year In debtor8 (Deorea8eylncrease In credK¢xs Goveinment grants 49,106 42,856 (7,881) (616) 52,009 (96,693) (1,186,042) {204.912) (065,97g) 1,662,856 (364,638) 78,076 Net CaBh provldod byJ{u88d In} op8ratlng a¢tlvltle8 77,476 {969,789J 21. Analy818 of cash and cash oqulvalonttt Group 2022 Group 2021 Cash In hand Overdraft faclllty repayable on demand 6A96,724 0,801,538 (4,148) Total ¢a8h and cash oqulvalonts 5,496,724 6.797,390 Pagg 37 THE ROYAL AIR FORCE CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 22. Analysls of Chang•8 In nèt debt At30 Septembgr 2022 OctoboT 2021 Cash flows Cash at bank and In hand Bank oveidrofls repayable on demand Debt du8 wllhln 1 year Debt due afler 1 year 5001,538 14,148) 1306,000) 11,224,000) 131)4,8141 5,490,Y24 4,148 125,OOOJ 1331,0001 331,000 (893,OOD) 4,207,390 5,334 4272,724 23. Pan$lon commltments The penslon cost chaige for th6 perfod represen18 conlrlbullons payabl¢ to the deflned conlrlbullon scheme and amounted lo £81.927 (2021.. £92,058). Conlributlons lolalling £15,874 (2021.. £13,764) were payable lo the 8chBme al the end of th¢ p¢rlod and are Induded ￿thIn other credllors. Page 38 THE ROYAL AIR FORCE CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 24. R¢lat¢d party traii8actlon8 Royal Alr Forc8 Charltable TruBt Enlerprl8eB (RAFCTE) The Royal Alr Fcrte Charllable Trusl Ent¥rprbo8 Is a wholly owned sub81dlary of the ChaTIty. Durlng tha year. RAFCTE were reimbursed costs of £131,591 f2021.. £103,445) which WÈ￿ pald on behalf of RAFCT. A donation was a180 pald In the yew from RAFCTE lo RAFCT of £150,000. Thore was an ou151andlng balance of £116,358 du8 lo RAFCT at the ye8r.end (due from 2021.. £10.101). 8e•mpton Alrohow Llmlt¢d (SAL) Scamplon Alrsh¢)w Llmfled 18 a wholly owned 8ub8ldlary of the Charlly. Th8 Company was dormant durlng lh8 flnancial year. RAF100 As parl of o programm6 relaled Inv881menl FIAFCT18 a partner of RAF100. Royal Internatlonal Alr Tatloo Flylng Scholarshlp¥ for Dlsablod Poopl¢ Thls ¢harlly has a close relallon8hlp wllh the Royal Alr Foroe Charltable Trust Ent6ry)ri$es Llmlled from whlch11 d8riV8s Ils namè. Durlng Ihe year RAFCTE were relmbursed cosis of £5,000 (2021., £7,000) whlch werè pald on behalf ol the Royal Inlèmallonal Alr Talioo Flylng Scholarshlps for Dlsablod People. The amount payable lo RAFCTE al year eThd was £2.206 {2021.. £nlJ). Thore werelw¢ro not other rel818d partylransacllorts durlng the y8ar12021.- None). Pag¢ 39 THE ROYAL AIR FORCE CHARITABLE TRUST MOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 25. Prfn¢lpal 8ubsldlarle8 The followlng was a sub81iilary underlaklng of the Charlly, Ownershlp of RAFCTE18 h8ld by thè Charlly. As such RAFCTE Is deèmed to be a wholly ownod subsidiary of thè Trust. Under the Trust Deed the Tru81ees have th8 power to appolnt andlor remove any corporation 8Ctlng ats Ihek nomln88. ulllmalè control of RAFCTE Is therefore held by the Twsl. The followlng was a 8ubsldlary urKtertakkng of the charl1￿. Nam• Company numbgr Reglgtered offl¢e or prlnclpal Prlnclpal actlvlty place of bu8lnes8 The Royal Alr Force Charltdyl8 02190393 Trust Enl8rprl8e8 (RAFCTEI Douglos Bader House, Horeoll Runnlng the Royal Hlll, Falrford. GlouceslershlT8, International Alr GL7 4RB Talloo IRIAT) Clays of Included In Sharos consolldatlon Llm5ted by Yès guarantee The ftnanclal results of th$ subsidlaryfor the y8ar were: Name Incomè Expendllure Proflt for the year Not a88Ot6 The Royal Alr Force Charflable Trust Entefprlses (RAFGfEI 13,644,371 (11,521,791) 2,027,016 1.990,707 Assets lolalled £7,457.930 liabllillès101016d £5.467.223, glvlng total net a$sel$ of £1,990,707. g$40