2023-09-30-accounts

Trustees	AirMarshalPhilipOsbornCBE
	MrlanBeresfordMBEFRAeSCEngFloDCDir
	MrPeterBrownMBEBSc
	MrsMandyHickson(appointed13October2023)
	MrsFelicityChadwick-HistedBAMSc
	MrRajModyMAFIA
	LtGenRichardNugeeCBCVOCBE(appointed2 March2023)
	MrStephenOldfield
	DrKevinP StensonMBA(appointed7 December2023)
	Lady(Kate)WigstonLLBBA
	AirMarshalSirJulianYoungKBECBFREng
	MrSimonKimble(appointed7 June2023)
Charityregistered
number	1176054
Principaloffice	DouglasBaderHouse
	HorcottHill
	Fairford
	Gloucestershire
	GL74RB
Companynumber	CEO12521
Governingdocument	ClOArticlesandMemorandumofAssociation	1December2017
Independentauditor	CroweU.K.LLP
	FourthFloor
	StJamesHouse
	StJames’Square
	Cheltenham
	GL503PR
Bankers	BarclaysBankPlc
	TheDocks
	Gloucester
	Gloucestershire
	GL12YJ
Solicitors	CharlesRussellLLP
	8-10NewFetterLane
	London
	EC4A1RS

aninterestintheRAF’.RAFCTprovided	a	grant tosupport	the	developmentofa	developmentofa		Space		BTEC	syllabus	syllabus
which is an exciting and innovative	advancement in		the	cadet offer,	and		in	directsupport			of
therequirements forSpace in theRAFand		widerindustry.	Theaim is todeliver				the	spacesyllabus			to
everycadetintheUKwiththetangibleaward	of	aBTECLevel2.
Grants
Duringthefinancialyear,theTrusthasmaintained itsestablished				grantsandhasbegunto					build	newgrant
opportunities,witha viewtowidelyexpanding		itsgrantportfolio	for	2023/24.ForthisFY,substantial						support	to
theRAFSportAircraftAssociation(RAFSA),		theScoutsand	theRAFSTEMorganisation,						the	AirCadet
OrganisationandtheSmallpeiceTrusthave		continuedalongwith		smallergrants	to	theArkwright				Trust,	the
UlyssesTrust,andFlyingScholarshipsforDisabledPeople.Asthefirststepsinthe					deliveryof				theTrust’smore
ambitiousstrategy,twonational initiatives	weredeliveredwithpartnersTheSmallpeiceTrustandPrimary
Engineer,bothfocussedonthedeliveryofnationalSTEMprogrammesforyoungpeople.
GrantDetail				Awarded			Returned
RAFSA- JRPSSTUS20						£(12,000.00)
RAFSA- JRPSS23				£54,000.00
RAFSA- JOPSS23				£10,800.00
RAFSA- JRPSSTUS23				£21,500.00
RAFSA- Tecnamhangar				£7,000.00
ScoutsbadgefirstportionAutumn23				£20,000.00
ArkwrightEngineeringScholarships	23-25			£12,150.00
SmallpeiceTrustEngineeringExperienceSouth				£15,000.00
SmallpeiceTrustEngineeringExperienceNorth				£15,000.00
RAFACSpaceBTEC				£40,000.00
UlyssesTrust2023				£15,000.00
FSDPBursary				£7,000.00
SmallpeiceTrust- RoadtoRIAT23				£59,175.92
PaulBowenWinnersLUAS					(15,000.00)
PaulBowen2"PlaceNIUAS					£(10,000.00)
LUASAdventureTrainingGrant				£5,000.00
NIUASAdventureTrainingGrant				£5,000.00
UASInspireAdventureAward2023				£15,000.00
				£301,625.92	|	£(37,000.00)
				£264,625.92

THE ROYAL AIR FORCE CHARITABLE TRUST TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2023

significant numbers of young people, more than 129,750 in 2022/23, to further themselves through flying and engineering scholarships and grants that offer the ability to learn about and progress in aviation and engineering.

The Trustees confirm they have considered Section 17 of the Charities Act 2011 to have due regard to the Charity Commission's guidance on public benefit.

RISKS

Risk policy and revised risk frameworks continue to adapt and are utilised regularly throughout the organisation. Led by the RAFCT Finance, Audit and Risk Assurance Committee and the RAFCTE Audit Committee, there is stringent audit and monitoring of key risks to both the Charity and the wider Group. Risk severity and mitigation actions are routinely monitored, including deliberate and inadvertent disruption to, or cancellation of RIAT.

FINANCIAL REVIEW

The Trustees consider that, despite the cancellation of RIAT 20 and RIAT 21 the success of RIAT22 and RIAT 23 underpins the belief that both the Trust and its trading subsidiary RAFCTE are financially healthy and well placed not only to meet the demands of on-going financial commitments, but also to take advantage of opportunities that may arise in forthcoming years.

Consolidated (i.e. for both the Trust and the Trading companies) income for the period was £15,310,451 (30 September 2022: £13,549,086) of which £15,018,880 (30 September 2022: £13,367,462) related to the trading activities of RAFCTE and £nil (30 September 2022: £nil) to SAL. Expenditure for the period was £13,467,152 (30 September 2022: £11,855,979) of which £12,934,037 (30 September 2022: £11,490,447) was attributable to RAFCTE. This resulted in net profit of £1,906,678 (30 September 2022: deficit of £1,693,107). The expenditure by RAFCTE is predominately associated with the staging of RIAT which delivers to the Trust's objective of promoting the RAF. SAL did not trade in the period. These costs can therefore be considered as a cost associated with the Group's expenditure on delivering the charitable activities of the Trust.

The Trust activity is shown in the financial statements. Gross income to the Trust in the year was £2,417,368 (30 September 2022: £181,624) of which £2,244,787 (30 September 2022: £150,000) was covenanted from RAFCTE. RAFCT governance costs were £10,123 (30 September 2022: £8,210) and grants of £264,626 (30 September 2022: £200,998).

Consolidated net assets were £5,119,698 (2022: £3,213,020) at the balance sheet date, of which £249,753 (2022: £440,707) represents designated funds.

During the year RAFCTE and the Charity placed surplus cash on fixed term bank deposit whenever cash flow prediction allowed. This generated a return of £140,011 (30 September 2022: £7,581).

The financial statements comply with current statutory requirements, the Statement of Recommended Practice (FRS102) and the Trust's CIO Articles and Memorandum of Association dated 1 December 2017. The financial statements have also been prepared with due regard to guidance published by the Charities Commission on the operation of the Public Benefit.

RESERVES POLICY

The RAFCTE traditionally provides the main revenue for the Trust through a range of activities including the RIAT and other event management activities, and sales of merchandise. As profits from some of these events have historically been potentially vulnerable to weather and other exigencies, of late two cancellation due to COVID19, the Trustees increased the value of reserves to provide prudent financial resilience against uninsurable risks. Of note, and aligned to the Group COVID recovery plan, the RAFCT Board approved a Designated Investment fund of £1.7M to provide the working capital required to facilitate the delivery of RIAT. The Group annually reviews the reserves policies, and the corresponding reserve balances, against the strategic direction of both RAFCT and RAFCTE, and to further ensure both strategically placed to react to external forces such as a partial or full cancellation.

Page?

THE ROYAL AIR FORCE CHARITABLE TRUST

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE ROYAL AIR FORCE CHARITABLE TRUST (CONTINUED)

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Crowe U.K. LLP

Statutory Auditor

Fourth Floor

St James House

St James' Square

Cheltenham

GL50 3PR

Date: 18 June 2024

Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

Page 13

		Restricted	Unrestricted	Total		Total
		funds	funds	funds		funds
		2023	2023	2023		2022
	Note	£	£		£	£
Incomefrom:
Donationsandlegacies	3	-	151,560	151,560		28,477
Othertradingactivities	4	-	15,018,880	15,018,880		13,513,028
Investments	5	-	140,011	140,011		7,581
Totalincome		-	15,310,451	15,310,451		13,549,086
Expenditureon:
Raisingfunds	6	-	13,192,403	13,192,403		11,646,771
Charitableactivities	7	-	274,749	274,749		209,208
Totalexpenditure		-	13,467,152	13,467,152		11,855,979
Netincomebeforetaxation		-	1,843,299	1,843,299		1,693,107
Taxation		-	63,379	63,379		-
Netmovementinfunds		-	1,906,678	1,906,678		1,693,107
Reconciliationoffunds:
Totalfundsbroughtforward		100	3,212,920	3,213,020		1,519,913
Netmovementinfunds		-	1,906,678	1,906,678		1,693,107
Totalfundscarriedforward		100	5,119,598	5,119,698		3,213,020

	Restricted	Unrestricted	Total	Total
	funds	funds	funds	funds
	2023	2023	2023	2022
	£	£	£	£
Incomefrom:
Donations	-	2,396,347	2,396,347	178,477
Investments	-	21,021	21,021	3,147
Totalincome	-	2,417,368	2,417,368	181,624
Expenditureon:
Raisingfunds	-	194,987	194,987	156,324
Charitableactivities	-	274,749	274,749	209,208
Totalexpenditure	-	469,736	469,736	365,532
Reconciliationoffunds
Totalfundsbroughtforward	100	2,922,213	2,922,313	3,106,221
Netmovementinfunds	-	1,947,632	1,947,632	(183,908)
Totalfundscarriedforward	100	4,869,845	4,869,945	2,922,313

			2023		2022
	Note		£		£
Fixedassets
Intangibleassets	12		90,625		-
Tangibleassets	13		1,368,490		1,171,162
Currentassets
Stocks	15	79,454		44,683
Debtors	16	3,826,482		2,014,432
Cashatbankandinhand		4,869,004		5,496,724
		8,774,940		7,555,839
Creditors:amountsfallingduewithinone
year	17	(4,502,357)		(4,620,981)
Netcurrentassets			4,272,583		2,934,858
Totalassetslesscurrentliabilities			§,731,698		4,106,020
Creditors:amountsfallingdueaftermore
thanoneyear	18		(612,000)		(893,000)
Totalnetassets			5,119,698		3,213,020
Charityfunds
Restrictedfunds	19		100		100
Unrestrictedfunds
Designatedfunds	19	249,753		440,707
Generalfunds	19	4,869,845		2,772,213
Totalunrestrictedfunds	19		5,119,598		3,212,920
Totalfunds			5,119,698		3,213,020

	Unrestricted	Total		Total
	funds	funds		funds
	2023	2023		2022
	£		£	£
Donations	151,560	151,560		28,477
Total2022	28,477	28,477

	Unrestricted	Total		Total
	funds	funds		funds
	2023	2023		2022
	£		£	£
RIATIncome	14,732,345	14,732,345		13,319,718
OtherIncome	42,875	42,875		7,145
TradingIncome	243,660	243,660		186,165
Total2023	15,018,880	15,018,880		13,513,028
Total2022	13,513,028	13,513,028

	Unrestricted	Total		Total
	funds	funds		funds
	2023	2023		2022
	£		£	£
Investmentincome	140,011	140,011		7,581
Total2023	140,011	140,011		7,581
Total2022	7,581	7,581

	Unrestricted	Total		Total
	funds	funds		funds
	2023	2023		2022
	£		£	£
RIATexpenditure	9,329,070	9,329,070		8,577,428
Interestpaid	68,950	68,950		42,856
Admincosts	1,143,813	1,143,813		786,701
Payrollcosts	2,599,360	2,599,360		2,190,680
Depreciation	51,210	§1,210		49,106
Total2023	13,192,403	13,192,403		11,646,771
Total2022	11,646,771	11,646,771

	Unrestricted
	funds	Total	Totai
	2023	2023	2022
	£	£	£
Charitableactivities	274,749	274,749	209,208
Total2023	274,749	274,749	209,208
Total2022	209,208	209,208

	Activities
	undertaken	Total	Totai
	directly	funds	funds
	2023	2023	2022
	£	£	£
Charitableactivities	274,749	274,749	209,208
Total2023	274,749	274,749	209,208
Total2022	209,208	209,208
Analysisofdirectcosts
	Support	Total	Total
	costs	funds	funds
	2023	2023	2022
	£	£	£
Grantexpenditure	264,626	264,626	200,998
Governancecosts	10,123	10,123	8,210
Total2023	274,749	274,749	209,208
Total2022	209,208	209,208

	2023	2022
	£	£
FeespayabletotheCharity'sauditorinrespectof:
TheauditingoftheaccountsoftheCharity	4,500	3,850
Theauditingoftheaccountsofthesubsidiaryentity	17,900	15,300
Allassuranceservicesnotincludedabove	3,780	3,550

	Group		Group	Charity	Charity
	2023		2022	2023	2022
		£	£	£	£
Wagesandsalaries	2,294,343		1,911,388	151,281	116,467
Socialsecuritycosts	221,694		197,365	11,347	8,182
Contributiontodefinedcontributionpension
schemes	83,323		81,927	4,935	4,628
	2,599,360		2,190,680	167,563	129,277

	Group	Group	Charity	Charity
	2023	2022	2023	2022
	No.	No.	No.	No.
Airshows	44	39	-	-
Other	2	2	2	2
	46	41	2	2

					Group	Group
					2023	2022
					No.	No.
In	the	band£70,001	-	£80,000	-	1
In	the	band£80,001	-	£90,000	3	1
In	the	band£90,001	-	£100,000	2	2
In	the	band£110,001		-£120,000	-	1
In	the	band£120,001		-£130,000	1	-
In	the	band£180,001		-£190,000	1	1

		NOTESTOTHEFINANCIALSTATEMENTS
		FORTHEYEARENDED30SEPTEMBER2023
12.	Intangibleassets
	Group
			Website
			Development
	Cost
	Additions
	At30September2023
	Netbookvalue
	At30September2023		90,625
	At30September2022

	Freehold	Motor		Fixturesand
	property	vehicles		fittings	Total
	£		£	£	£
Costorvaluation
At1 October2022	1,663,394	52,763		683,675	2,399,832
Additions	-	449		248,089	248,538
At30September2023	1,663,394	§3,212		931,764	2,648,370
Depreciation
At1 October2022	§36,232	44,024		648,414	1,228,670
Chargefortheyear	23,713	5,987		21,510	51,210
At30September2023	559,945	50,011		669,924	1,279,880
Netbookvalue
At30September2023	1,103,449	3,201		261,840	1,368,490
At30September2022	1,127,162	8,739		35,261	1,171,162

	Investments
	in
	subsidiary
	companies
Charity	£
Costorvaluation
At1 October2022	1,700,100
At30September2023	1,700,100
Netbookvalue
At30September2023	1,700,100
At30September2022	1,700,100

	Group		Group
	2023		2022
		£	£
Finishedgoodsandgoodsforresale	79,454		44,683
Stockisstatedaftera provisionof£26,264(2022:£26,264).

	Group		Group	Charity	Charity
	2023		2022	2023	2022
		£	£	£	£
Duewithinoneyear
Tradedebtors	3,194,295		1,421,263	-	-
Amountsowedbygroupundertakings	-		-	1,911,215	-
Prepaymentsandaccruedincome	261,246		260,420	-	-
Taxrecoverable	370,941		332,749	-	-
	3,826,482		2,014,432	1,911,215	-
Creditors:Amountsfallingduewithinoneyear
	Group		Group	Charity	Charity
	2023		2022	2023	2022
		£	£	£	£
Bankloans	331,500		331,000	-	-
Tradecreditors	494,732		465,160	-	-
Amountsowedtogroupundertakings	-		-	-	217,214
Corporationtax	=		63,379	-	-
Othertaxationandsocialsecurity	52,750		48,628	-	-
Othercreditors	19,671		20,624	5,750	4,750
Accrualsanddeferredincome	3,544,404		3,536,202	2,828	2,378
Grantsaccrued- institutional	59,300		155,988	59,300	155,988
	4,502,357		4,620,981	67,878	380,330
				Group	Group
				2023	2022
				£	£
Deferredincomeat1 October2022				2,802,892	4,080,967
Resourcesdeferredduringtheyear				2,808,079	2,802,892
Amountsreleasedfrompreviousperiods				(2,802,892)	(4,080,967)
				2,808,079	2,802,892

	2023
	£
Commitmentsat1 October2022	155,988
Grantsawardedintheyear	264,626
Grantspaidintheyear	(324,324)
Grantsclawedbackintheyear	(37,000)
Commitmentsat30September2023	59,290

							Balanceat
	Balanceat1						30
	October				Transfers	Giftaidand	September
	2022	Income		Expenditure	in/out	eliminations	2023
	£		£	£	£	£	£
Unrestricted
funds
Designated
funds
RAFCTE	440,707	15,137,870		(12,934,037)	(150,000)	(2,244,787)	249,753
Generalfunds
GeneralFunds-
allfunds	2,772,213	172,581		(469,736)	150,000	2,244,787	4,869,845
Total
Unrestricted
funds	3,212,920	15,310,451		(13,403,773)	-	-	5,119,598
Restricted
funds
RestrictedFunds
-allfunds	100	.		-	-	-	100
Totaloffunds	3,213,020	15,310,451		(13,403,773)	-	-	5,119,698

						Balanceat
		Balanceat				30
		1October				September
		2021	Income		Expenditure	2020
		£		£	£	£
Unrestrictedfunds
Designatedfunds
RAFCTE		(1,586,308)	13,517,462		(11,490,447)	440,707
Generalfunds
GeneralFunds- all	funds	3,106,121	31,624		(365,532)	2,772,213
TotalUnrestricted	funds	1,519,813	13,549,086		(11,855,979)	3,212,920
Restrictedfunds
RestrictedFunds-	allfunds	100	-		-	100
Totaloffunds		1,519,913	13,549,086		(11,855,979)	3,213,020

	Restricted	Unrestricted	Total
	funds	funds	funds
	2023	2023	2023
	£	£	£
Tangiblefixedassets	-	1,368,490	1,368,490
Intangiblefixedassets	-	90,625	90,625
Currentassets	100	8,774,840	8,774,940
Creditorsduewithinoneyear	-	(4,502,357)	(4,502,357)
Creditorsdueinmorethanoneyear	-	(612,000)	(612,000)
Total	100	5,119,598	5,119,698

	Restricted	Unrestricted	Total
	funds	funds	funds
	2022	2022	2022
	£	£	£
Tangiblefixedassets	-	1,171,162	1,171,162
Currentassets	100	7,555,739	7,555,839
Creditorsduewithinoneyear	-	(4,620,981)	(4,620,981)
Creditorsdueinmorethanoneyear	-	(893,000)	(893,000)
Total	100	3,212,920	3,213,020

	Group	Group
	2023	2022
	£	£
Netincomefortheyear(asperStatementofFinancialActivities)	1,906,678	1,693,107
Adjustmentsfor:
Depreciationcharges	51,210	49,106
Interestpaid	68,950	42,856
Interestreceived	(140,011)	(7,581)
(Increase)/decreaseinstocks	(34,771)	52,009
(Increase)indebtors	(1,812,050)	(7,186,042)
(Decrease)increditors	(55,745)	(565,979)
Taxpaid	(63,379)	-
Netcash(usedin)/providedbyoperatingactivities	(79,118)	77,476

	2023		2020
		£	£
Notlaterthan1 year	3,866		-
Laterthan1 yearandnotlaterthan5 years	15,462		-
	19,328		-