2024-03-31-accounts

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OROYAL AIRFORCE museum Royal Air Force Museum Account 2023-24 HC115

Royal Air Force Museum Account 2023-24 Presented to Parfiament pursuant to the RAF Museum Framework Agreement and under Royal Charter Ordered by the House of Commons to be printed on 26th of July 2024 HC115

@ Crown copyright 2024 This publication is licensed under the terms of the Open Government LIn v3.0 expt where othenmise stated. To view this licence, visit nationalarchives.gov.ukldoclopen- government-licencelversion13 Vvhere we have identified any third-party copyright infomiation you wll need to obtain permission from the copyrighl holders concerned Any enquiries regarding this publication should be sent to us at Royal Air Force Museum, Grahame Park Way, Hendon, London, NW9 5LL. ISBN.. 978-1-915287-45-8 Printed in the UK on behalf of the Controller of His Majesty's Stationery Office

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 CONTENTS Page Annual Report Administrative Information Charitable Aims and Activities Perfomiance Report Overview Future Plans Strategic Priorities Performance Analysis Financial Review Accountability Report Corporate Governance Report 30 Chief Executive Officer's report and govemance statement 31 Statement of the Board of Trustees, and Chief Executive Officer's Responsibilities 38 Remuneration and Staff Report 39 Padiamentary accounlabilily and audit report The Certificate and Report of the Comptroller and Auditor General 10 20 22 45 Financial Slatements Consolidated Statement of Financial Activities Consolidated and Charity Balance Sheet Consolidated Cash Flow Statement Notes to the Financial Statements 51 52 53

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 ADMINISTRATIVE INFORMATION Address of the charity Royal Air Force Museum Grahame Park Way Hendon London NW9 5LL Registered charity number 1197541 Names and addresses of other relevant organisations Auditor Comptroller and Auditor General National Audit Offi 157-197 Buckingham Pala Road Victoria London SW1W 9SP Solicitors Charles Russell Speechlys LLP 5 Fleet Place London EC4M 7RD Bankers Barclays Bank PIC PO Box 12820 Vvhetstone London N20 OWE Page 1

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 CHARITABLE AIMS AND ACTIVITIES Our Purpose The Royal Air For has shaped our nation and our society. It has InflUend how we live our lives today through its impact on world events, sociely and lechnology. The purpose of the Royal Air Force (RAF) Museum is to share the story of the Royal Air Force, past, present and future using the stories of its people and our collections to engage, inspire, entertain and encourage learning. The RAF Museum was established as a legacy of the RAF'S fiftieth anniversary in 1968, opening our London (Hendon) site in 1972 on the historic pioneering airfield in Colindale (previously RAF Hendon, and home of the London Aerodrome from 1910). Our Midlands site began as the Aerosp8 Museum at RAF Cosford (established in 1938 as a joint aircraft maintenan, storage and technical training site for the Ministry of Defence) in the spring of 1974 and joined the family in 1979. It was renamed RAF Museum Cosford in 1998, and more recently in March 2022 as RAF Museum Midlands. The Museum also has external stores, one in Stafford and another within RAF Cosford. For over a hundred years the RAF has defended the skies of Britain. The RAF'S mission is to defend the UK, to attack if required, to provide reconnaissance and intelligen, to support in times of humanitarian crisis and to move people and equipment across the world quickly. The RAF provides the UK Government with choices in a rapidly changing world through its extraordinary people, innovative technologies, global alliances and partnerships with industry. The RAF is woven into our history, from its fomation during the First World War to the vital role it perfomis today as the nation's first line of defence. These are stories of people. And whether they are stories of technical and engineering innovation, of values and camaraderie, or of courage against all odds, there is connection and relevance for each and every one of us that the Museum hamesses for learning and inspiration. Charilable Objects The formal objects of the charity are to educate and inform the public and members of the Royal Air Force about.. The history and traditions of the Royal Air Force., and The role of the Royal Air Force in relation to the armed forces of the realm, other air forces and aviation generally. In particular, but not exclusively, this will be achieved by collecting, conserving, preserving, managing, exhibiting and storing documents, items, artefacts and other materials in the collection, and encouraging research and sharing of information. The RAF Museum was registered as a charity (Registered Charity Number 2447081 in 1968 and to 31 March 2022 was governed in accordance with a Scheme of the Charity Commission dated 4 June 2007 which replaced the fomer trusts of the Museum. From 1 April 2022, the new incorporated charity with Royal Charter status {RC000922, Registered Charity Number Page 2

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 1197541) is govemed in accordance with its Charter and Bye-laws to deliver the same charitable objects Governance The RAF Museum is a National Museum, a Government non-departmental public body (NDPB) and a registered charity governed by Royal Charter. The Museum is the National Museum of the Royal Air Force, unique in its size and scope, and officially recognised as such. The Museum works closely with the Royal Air Force, ils sponsor organisalion al the Ministry of Defence, including liaison with the Air Historical Branch, RAF Heritage and RAF Engagement. HRH Prince Philip, The Duke of Edinburgh, was Patron of the Museum from its inception in 1968 until his death in April 2021. The Museum is honoured and delighted that in May 2024 it was confirmed Ihat His Majesty King Charles 111 has accepted the Patronage of the Museum. A trading subsidiary Royal Air Force Museum Enterprises Ltd (company number 1511481) is incorporated as a company limited by shares (wholly owned by the RAF Museum} to manage the associated commercial activities land any activities that are 'non-primary purpose trading'l for the benefit of the Gharity. All profits of RAF Museums Enterprises Ltd are gifi-aided to the Museum on an annual basis, as agreed in a Deed of Covenant between the parties. Effective 1 April 2022, the shares held by nominees on behalf of the trust were transferred lo the Royal Charter company, which became the sole shareholder of the Royal Air Force Enterprises Ltd company. The Royal Air Force Museum Investments Limited (company number 40269951 is a wholly owned subsidiary which is incorporated as a limited liability company to hold the real property assets of the charity on behalf of the Trustees. In March 2005, the Cosford and Stafford leasehold property was transferred to this company from the charity, followed by the London (Hendon) freehold property in January 2008. Effective 1 April 2022, the shares held by nominees on behalfofthe trust were transferred to the Royal Chartercompany, which became the sole shareholder of the Royal Air Force Investments Ltd company. A Partnering Agreement is in place between the RAF Museum and the RAF which sets out the sponsor relationship and identifies the services that the Museum provides and the support given by the RAF in order that these aims are achieved. RAF colleagues past and present continue to provide fantastic support and inspiration lo the Museum to enable us to share the ever-developing RAF story. Aligned with the Partnering Agreement is a Framework Document drawn up by the MOD in consultation with the RAF Museum and which sets out the broad governance framework within which the Museum and the MOD operates. It sets out core responsibilities, describes the governance and accountability framework that applies between the roles of the MOD and the Museum and sets out how the day-to-day relationship works in practice, including in relation to governance and financial matters. The Public Bodies Review of the three Service Museums - National Museum of the Royal Navy, National Army Museum and Royal Air Force Museum was carried out under the Cabinet offl'S Public Bodies Reviews Programme during 2023-24 and the Secretary of State-approved final report was published on 1 March 2024. The review considered the governance, accountability and efficiency of the three museums and was led by an external Page 3

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 independent lead reviewer, Mrs Lopa Patel MBE, non-executive director at the Intellectual Property Office., supported by MOD civil servants, independent of the seNice museums and the seNice museums sponsor teams. A challenge panel was used to test the evidence base and challenge emerging thoughts and recommendations. Evidence was gathered through interviews, documentation supplied by the museums, museum visits, public reports about the wider cultural and heritage sector and desk-based research. The review found that MOD seNice museums are effective in fulfilling their purpose and should remain as NDPBS within the Ministry of Defence. One of the key recommendations was closer wothing between sponsor bodies and their museums and new regular liaison meetings have been scheduled between Assistant Chief of Air Staff, the RAF'S RAF Museum Board representative., Air Command's Director of Resources (who leads the RAF'S sponsorship team)., the Commandant and Station Commanderfrom RAF Cosford., and the Museum's Chief Executive. Our Activities The RAF Museum's vision is 'inspiring everyone with the RAF story- the people who shape it and its place in our lives,. We are committed to using our Collections to share the story of the Royal Air Force and its people. Entry lo the Museum is free to the public and the Museum welcomes almost one million visitors a year across its two sister sites, and alongside this undertakes impactful learning activities with children and young people, both fomially and informally. As an educational charity, whether visitors are engaging with our displays, taking part in discussion and debate, studying our archive, holding a corporate event in our Spa$, having fun at events and in our playgrounds, or enjoying a rest in our cafés, there are opportunities for inspiration from the incredible RAF story in every pore of our Museum. Our current strategic plan 'Strategy 2030, sets out an ambitious vision for the future, shaped and shared by our Trustees, staff team (employees and volunteers) and key partners, and which continues to guide the Museum during a complex period of our history, with climate change and an unstable international environment, and ever-present threats to our way of life. We have much to do, but we look foNard with confidence and clarity. By 2030 the RAF Museum will be recognised as a world class National Museum, respected for our commitment to focusing on our audiences and using our collections and spaces in creative ways to engage them with the RAF'S story. We shall remain financially sustainable, with firm foundations that enable an agile and creative future. Our collection is central to everything we are and do and comprises around 1.3m objects which we hold in trust for the people of the UK. Our aim is to deepen further our focus on immersive RAF storytelling and be more ambitious in encouraging reflection and debate across our spaces and programmes, as well as welcoming all our visitors for a great day out. We are committed to engaging more people and, equally important, a more diverse range of people by ensuring that ourgovernance, ourteams, our collection and our storytelling are better reflective of the changing national population. Equally, we are committed to sharing the RAF story outside our walls across the UK and beyond through in-person outreach programmes and online engagement. Examples include touring iconic objects from the collection, research activities, community workshops, loans with partner organisations and storytelling through www.RAFStories.or Page 4

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 Both our sites continue to require significant investment to care appropriately for our unique collection and to reach wider audiences. Our priority project is the Inspiring Everyone.. RAF Museum Midlands Development Programme which forms the first major slep of a twenty-five year Master Plan for our Cosford site, while we continue to make significant improvements at London. The Midlands Development Programme of engagement and capital investment will transform our Museum and our impact through a series of phased projects engaging audien$ who may not obviously identify with the FIAF story by finding common interests and histories which link them. The scope of the London Master Plan rationalises our use of the Hangar 3, 4 and 5 building in order to maximise opportunities for visitors to engage with the collection and RAF story in meaningful ways. It will improve both our operational effectiveness and the visitor experience through the necessary modemisation of our front and back of house resources and environment, with a focus on commercial imperatives and sustainability of income generation, while balancing considerations of storage and care for the collection, developing new facilities (including a new Research and Immersive Leaming Centre) to improve the care of and a¢$S to our nationally important archives, library, photographs and art collection., and taking into account fundability of projects, environmental impact and engagement of stakeholders. The RAF is iconic to so many people in the UK and overseas and we will continue to research and share its history. Equally, today's men and women in the RAF are active on more fronts than they have ever been in our increasingly complex world. We ensure that their stories are at the top of our agenda through contemporary collecting and innovative programmes that keep us relevant and connected. We are immensely appreciative of Government investment in its National Museums, and specifically grateful to the MOD and Air Command for their support for the RAF Museum. However, to achieve our Slrategy 2030 ambitions, both across day to day programmes and apital improvement, the Museum must further grow our commercial and fundraising success significantly within the challenging financial context we operate in. Creative income generation opportunities are embedded in Museum planning and will continue to be focused on as both additional storytelling platforms and essential enablers for our plans. Inspiring Everyone: RAF Museum Midlands Development Programme Our £27M RAF Museum Midlands Development Programme and fundraising campaign launched in March 2022 and is supported by the National Lottery Heritage Fund (NLHF), the RAF, and a number of other funders comprising trusts and foundations, industry partners and individuals. In February 2023, we entered a two-year Developmenl Phase to shape detailed plans for the Delivery Phase which is scheduled lo start in May 2025 (running to December 2028, with new spaces opening for summer 2027) if our fundraising target is achieved. Through the Inspiring Everyone.. RAF Museum Midlands Development Programme, we will.. Become a valuable resource for our Midlands community and welcome more visitors nationally and internationally, onsite, offsite, and online Work with partners to involve people in their local and RAF heritage, improving wellbeing and developing skills Page 5

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 Work with our audiences to share RAF stories that are relevant to their lives and lived experiences, inspiring them lo fulfil their own potential Ensure our collection will be better understood, cared for and more widely shared Move towards our target of being a Carbon Net Zero organisation Be a more resilient organisation and able to support our community in the future. The transformation Programme comprises.. An Engagement Programme that will deliver a range of creative, wellbeing and skills development activities rooted in our unique collection An innovative, nationally relevant new exhibition sharing the critical role of the RAF over the last 40 years, explore its mission today and imagine its future A new Learning Centre providing bespoke facilities dedicated to the provision of lifelong learning programmes A new Collections Hub which will enable us to move our collection from inaccessible storage to our public site, opening it up to visitors for the first time Improvements to our outdoor spaces, offering areas for learning. discovery and ontemplation while increasing biodiversity. The story of the RAF and Midlands, aviation, industrial and engineering heritage have been deeply connected throughout the RAF'S 100-year-plus history. The region encompasses air bases and test sites. It has supported innovation, inventors, engineers, businesses, and factories that have shaped the RAF in the past and are helping lo design and deliver ils future. Through the Programme, this rich heritage will be researched, celebrated, and shared through Cowcreation, outreach activities and storytelling, helping support placemaking and engendering a sense of local pride and belonging. AcsS and inclusion sit at the heart of our Programme, empowering our audiences to Influen and be actively involved in the creation of new interpretation, how we use our collections, and in the design of facilities and activities, resulting in a welcoming, relevant offer. We will tackle unequal access to heritage by building and broadening audiences and reaching those who may not have always felt our offer, or museums in general, are for them. Barriers relating to Socio-economic background, ethnicity and disabiliiy will be confronted, ensuring communities can take part equally and independently. Our Vision and Values We are working to achieve our vision through five strategic priorities that focus outwards with our collections and spaces at their heart. These priorities are supported by the ongoing development of strong internal systems which ensure we deliver creatively and responsibly.. AUDIENCES Inspiring innovative engagement, debate and reflection (onsite, offsite and onlinel- Why? We know relevan and dynamism are key to fulfilling our ambitions as a National Museum. TEAM - Inspiring our people within a dynamic, diverse and collaborative culture- Why. Our inspirational people in turn inspire our visitors and we know we achieve our best when we're committed and motivated. Page 6

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 AGILE - Embedding an entrepreneurial, agile and sustainable approach - Why? Our visitors, lives and society are changing fast and we need to remain fomard looking and resourced to fulfil our ambitions. PERFORMANCE - Fit for the future with brilliant basics - Vvhy? We need strong and suslainable foundations to fully achieve our vision. PARTNERSHIPS - Connecting with communities and partners - Vvhy? We know we can deliver better and more creatively through meaningful relationships with others. We are a values driven organisation with a team of talented and dedicated people who use their knowledge and creativity to make our collections sing and bring our spaces to life to inspire our audiences locally, nationally and internationally. Our work and our behaviour is underpinned by six guiding values.. INtegrity'. we are open, transparent and ethical Sharing.. we work as a team to ensure our collections and expertise are acSsible to Passion.. we care deeply about sharing our collections and their stories Innovation.. we tell our stories and develop our business with creativity and imagination Relevance.. we ensure our legacy by linking our histories with today and tomorrow Excellence.. we are professional and strive for exllenCe in all we do Underpinning everything that we do, the Museum has three overarching commitments that inform our insight, business planning and strategy development, these are our.. Equity, Diversity and Inclusion (EDII Commitment- we believe that everyone has the right to live without fear or prejudice regardless of race, age, gender, disability, sexual orientation, social class, religion and belief. We aim to embed a supportive and open culture which is inclusive, positive and fair to all, develop flexible opportunities to encourage engagement with the Museum onsite, offsite and online and celebrate differences. Sustainability Commitment- we are in a climate emergency, and we are committed to addressing this crisis through our operation and with our audiences. We will operate in an environmentally sustainable way, applying the principles of sustainable development for the benefit of current and future generations, both locally and globally. Health and Wellbeing Commitment- we are committed to creating an environment where health and wellbeing are actively promoted, where people feel engaged and valued for their contribution. We aim lo create a health promoting workplace where people can be themselves, feel their best and perfom at their best, so we can deliver an expIlOnaI experien for our visitors. Partnerships As one ofthe UK'S National Museums, the RAF Museum's responsibility and remil is UK-wide and partnership working locally, nationally and internationally is vital to the Museum's vision. The Museum works closely with our sponsor organisation the RAF and receives much valued support. In addition to its own two public sites, the Museum seeks opportunities to share collections through loans and online, as well as through its enquiries Servi and research programme. Page 7

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 The RAF Museum is a member of the UK Museums Association, the National Museums Directors, Council, the Association of Leading Visitor Attractions, the Association of Independent Museums and the Groupfor Education in Museums. It is committed to supporting other museums both across the UK and intemationally by involvement in national and international programmes. As well as being a National Museum which tells globally important stories, the RAF Museum's two public sites have an important role lo play in their local communities. Museums help define a place.. they help shape and convey a sense of identity and contribute to local distinctiveness. The Museum is committed lo working with its local communities to collect and represent their diverse and collective history and heritage as part of the RAF story. The Museum also works with a wide range of individual and corporate partners who share its vision of inspiring everyone with the RAF story. Our partners not only support us financially through grants, sponsorship and gifts in kind but they enable us to continue to engage and inspire our audiences through shared programmes and activities. We work with partners to ensure the collection is kept up lo date and cared for and rely on them to help us acquire new items of national importance. In addition, our partners have supported our Access and Learning teams in London and Cosford to deliver workshops and activities for children across the UK. The Museum also works in partnership with the RAF Museum American Foundation, a legally separate organisation, sharing ideas and collaborating together on fundraising opportunities to support the RAF Museum and foster and celebrate relationships between our two air forces. We should like to thank all our partners who have helped us to continue to share the RAF story. Charitable Fundraising The Museum has an in-house Development (Fundraising) team who raise funds to support our core work, as well as to enable major capital projects as part of Strategy 2030, including the Inspiring Everyone.. RAF Museum Midlands Development Programme., and the Research and Immersive Leaming Centre project at our London sile. The Museum is a member of the Institute of Fundraising and a registered member of the Fundraising Regulator. We work lo the Fundraising Code and Promise set out by the Regulator and are signed up to their Code of Practice. Page 8

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 PERFORMANCE REPORT OveNiew 2023-24 The Museum has achieved its highest ever visitor numbers during the year 2023-24, apart from the RAF Centenary year in 2018, welcoming over 929,000 visitors and showing a strong continued recovery from Ihe impact of the Covid-19 pandemic and economic pressures oflhe cost of living crisis. During 2023-24 the Museum's collection and knowledge has been reflected in an engaging programme of events and exhibitions. Visilor numbers have been supported by the return of intemational tourists in London and the Museum's strong public events programme. Other events have included our 1940s Week and Vintage Fair, Community Day and Hercules Flypast in the Midlands, our Pilot Training Programme in London, and our Horrible Histories Up in the Air Adventure at both sites over the summer. We are pleased to report that the Museum has exceeded its target of breakeven for 2023-24 with an unrestricted operational surplus of £289,000, which has been made possible by a strong trading perf0mlan, ongoing improvements lo our resourcing model, and a successful challenge to our 2017 business rates valuation. The Museum has continued to significantly progress other major projects and initiatives in line with our Strategy 2030 as well as investing in necessary infrastructure improvements. Two new permanent exhibitions (Bomber Command and Intear) were opened during the year and a £1.8M project completed to replace the glazing and carry out redecoration works to the exterior of the iconic historic colonnade building at our London site. The glazing project has led to significant improvements in the aesthetic and environmental performance of the building, improving the experience of our visitors and staff team. Alongside this, design work to develop concept proposals for a new commercial zone in London including a pay-to-play area, simulator zone, and café and a new Research and Immersive Learning Centre was completed prior to project phasing subject to funding availability. Substantial progress has also been made towards achieving our restricted fundraising target for the £27M Inspiring Everyone.. RAF Museum Midlands Development Programme with fantastic support from the National Lottery Heritage Fund INLHFI and our other partners and friends., although we still have some way to go to ensure all necessary fund5 are in place to enable the works to go ahead in the planned timeframe. The Museum has been successful in its NLHF Round 1 application for a development grant of £713,222 (towards a full application for £5M), and Arts Council England have confirmed a grant award of £99,999 through their Unlocking Collections Fund. During 2023-24 the Museum has established a cross- departmental Programme team supported by external expertise including an architect-led multi4isciplinary team, exhibition designers, Quantity SuNeyors and Capital Project Management. Capital design work has reached Spalial Coordination RIBA Stage 3 and planning applications have been subrnitted to the Shropshire Council Planning Department. Other activities have included carrying out non-visitor research and the development of the Engagement Programme, ConseNation Management Plan, Collections Relocation Plan, Community Grants Scheme, Environmental Sustainability Plan and Audience Development Strategy. The recruitment, onboarding and training of project volunteers got underway, and a regular stream of volunteers is now practically engaged in supporting the paid staff team. Page 9

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 In March 2024 we received the excellent news that the Museum was successful in our £2.4M grant application lo the Phase 3c Public Sector Decarbonisation Scheme (PSDS) grant (adminislered by Salix Finance) to fund a £2.9M project (including £520k Museum match funding) to replace the gas heating system in Hangars 3 and 4 in London, completing in March 2026. This project represents a major step forward in the Museum's sustainability commitment to achieving carbon net zero by 2030. Future Plans 202425 The framework to deliver our over-arching Strategy 2030 is reviewed annually as part of the Museum's business planning cycle with an update of Strategy 2030 every three years, and within this context a detailed Budget and Business Plan has been developed for 2024-25. The primary focus forfundraising and project development is our Inspiring Everyone.. RAF Museum Midlands Development Programme, however, we continue to deliver and develop additional London and Midlands projects thal will move us towards our ambition of welcoming more visitors and extending our audience reach and impact on-site, off-site, and online. The Museum's 2024-25 Business Plan objectives are focussed through our five strategic priorities in the context of Strategy 2030, against the backdrop of ongoing inflationary challenges (notably the cumulative effect of the pay award over the last two years), and the closure of Colindale Tube Station for much of 2024-25. The approved budget targets an operational breakeven based on a Cautious but challenging visitor profile 1835,000 visitors) and further targeted savings in our resourcing model. Project priorities include the RAF Museum Midlands Development Programme Development Phase, scheduled to complete in October 2024 priorto submission ofour Round 2 NLHF grant application. In London's Hangars 3 and 4, the detailed design of a greener heating system will be underway, new blinds will be installed to improve environmental conditions, and our Pay to Play area will be delivered. The Museum continues to be acutely conscious of the need to be agile in its approach and to build financial resilience against the background of a challenging economic and political landscape. We aspire to grow and diversify our commercial and fundraising income streams in order to achieve agreed outcomes, whilst maximising use of our resour$ to deliver effectively within our means. At the same time, long term underfunding in our capital infrastructure means that our project phasing and financial planning must take account of the need for significant investment at both sites to deliver standards and outcomes befitting a National Museum, enabling us lo care for and inspire wilh our amazing collection. We will continue to develop and nurture meaningful partnerships and invest our funding strategically, recognising the importance of museums and culture lo the social wellbeing and economic prosperity of our communities. Meanwhile, we shall continue to build and sustain the foundations we need in terms of collections care and management, our estate, and our IT and digital infrastructure. Our team is vital to all of this and our leadership and development programmes will help ensure our committed people are the best we can be in order to deliver our vision and purpose with and for our visitors. Page 10

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 Strategic Priorities 2023-24 Strategic priority 1: Inspiring innovative engagement, debate and reflection Collection, Exhibitions and Interpretatio The RAF Museum collection represents the national memory ofthe RAF at work and play, war and peace. 11 includes". The largest and most Gomprehensive collection of RAF related aircraft in the world, from the tiny Avro Rota autogyro, used for secret radar calibration missions during the Battle of Britain, to the VC-10 transport aircraft, in service for nearly fifty years Objects ranging from uniforms and medals lo unique personal items including the scrap books of Lord Trenchard and Sir Frederick Sykes, respectively the first and second Chief ofthe Air Staff, and the personal effects of Amy Johnson-that bring the stories of the iconic figures connected to the RAF to life An extensive oral history collection, from first-hand accounts of First World War pilots to the experiences of personnel deployed in current operations Large official collections, from manuals to training films, illustrating the inextricable link between the RAF and its suppliers. The Bomber Command exhibition opened at RAF Museum Midlands and RAF Museum London in May 2023, marking the 80th anniversary of Operation Chastise. The exhibition, funded with the support of the Bomber Command Association, explores the important and often ovedooked story of Bomber Command and its pivotal role in the Second World War. Interpretation is nuanced and sensitive, exploring the suffering and loss experienced by crews and civilians, as well as lebrating the heroism and victories of Bomber Command personnel. The Interwar exhibition opened in December 2024 in London. It explores the pivotal interwar years in which the RAF established its identity and hierarchy, in parallel with rapid technological developments and wide-ranging social changes. The 75th anniversary of the Berlin Airlift provided the Museum with the opportunity to share the RAF'S experiences through a new international Collaboration Berlin Airlift Remembered. The Museum led this collaboration which includes the Alliierten Museum, Militarhistorisches Museum and the National Museum ofthe United StatesAir Force. A bi-lingual website released stories in German and English featuring objects from the respective partners, collections as part of a timeline telling the story of the airlift. We also used our existing online platforms to share these stories and the history of the RAF during the Berlin Airlift. This project has been captured in both the German and British digital archives ensuring it will be permanently preserved and accessible. Collection Loans and Acquisitions In total 711 objectslobject groups were accessioned to the Museum's collection. Key acquisitions of the past year include.. Squadron Leader Arthur Scarfs Victoria Cross formally entered the collection after the sucSsful 2022-23 fundraising campaign The papers relating to Major James Mccudden VC DSO" MC. and his family. These include personal correspondence and rtIficateS as well as the flying logbooks of all Page11

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 three brothers. Of particular significance is Mccudden's logbook compiled during 1916- 1917 when he claimed his first five aerial victories over the Western Front The papers of Gp Capt John Derek Bisdee which include his diaries written during the Battle of Britain An ongoing inteNiew series with key RAF personnel and a Cold War reminiscence session with several ex-Tornado pilots and navigators. We have continued to share our Collection widely at over 154 venues both nationally and internationally through our Loans Programme, with 985 items out on loan during 2023-24. New and renewed loans included.. Stow Maries Great War Aerodrome - renewed loan of Avro 504K aircraft and a new loan of Tabloid aircrafi Militarhistorisches Museum, Bedin-Gatow- new loan of Fw 190 aircraft Science Museum- renewed loan including P.1127 aircraft Birmingham Museums Trust renewed loan of Castle Bromwich Aircraft Factory commemorative item and Metalworkers hand tool National Museum of the Royal Navy- renewed loan including two engines RAF College, Cranwell - renewed loan of 'Lancaslers over the Dutch coast,, 'Flt. Lt. R.P. Beamont DFC and Bar, and 'Sir Frank Whittle, paintings. RAF Stories The Museum's RAF Stories programme remains a crucial way for sharing content, as well as remaining agile and proactive in tracking new developments in the RAF'S story. In the past 12 months, a major focus has been to support the Inspiring Everyone.. RAF Museum Midlands Development Programme Exhibition team, providing content that shapes the development of the new exhibition and reflects the contemporary RAF. The RAF Stories team has also continued to proactively collect and produce content - 28 unique interviews were recorded, with each multi-hour interview capable of generating multiple pieces of content., and the team supported 23 co-curalion and dissemination events. Relationships have been built and maintained with organisations as varied as the Royal Air Force Aerobatic Team, UK Space Command, Fighting with Pride and the RAF Widows Association lo provide a continuing Sour of stories over the Goming years. The RAF Stories programme weaves through the wider activities of the Museum and is increasingly supporting the wider curatorial department with new object acquisitions, recording inteNiews with donors where appropriate, and lending their objects a first-hand human voice which provides enormously valuable context lo in-gallery interpretation. Research The Museum's Research Strategy continues to be supported by a voluntary Research Advisory Board, chaired by Sebastian Cox OBE, Head ofthe Air Historical Branch ofthe RAF. In continualion with recent years, the 2023-24 research programme was offered in a hybrid format both virtually and in-person. During this period, the programme featured lectures to the Royal Aeronautical Society, Air Power lectures with the Centre for War and Diplomacy at Lancaster University and the University of Wolverhampton, and lectures held at the Museum's Midlands site. Physical attendan has averaged at 30 people, and around 70 people regularly Page 12

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 watched the lecture live via Crowdcast with replays at around 100 views. The hybrid approach has been beneficial, as it has enabled the Museum to deliver engaging and intellectually rigorous content to a domeslic and international audien. The UK and US made up the majority of the audience for lalks, but countries represenled in the audience include Auslria, Brazil, Canada, Taiwan, Hong Kong and Papua New Guinea. Furthemiore, a special lecture held on the 80th anniversary of the Great Escape at our Midlands sile attracted 63 in-person attendees and over 200 people online. The Museum hosted its annual conference on 5-6 September 2023, with the theme 'Progress, Regress, and Change: Air forces since the early twentieth ntury,, with 45 researchers, staff and delegates attending in-person at the Museum's London sile, and a further 105 individuals joining live via the online video. The Museum's 2022 Academic Awards were presented to undergraduate, postgraduate and doctoral students, continuing to build upon our growing role in encouraging and developing the next generation of Air Power scholars. Academic prizes for 2023 have been awarded, and will be formally presented at the 2024 conference. In addition, the Museum organised and hosted two research conferences with external partners. The first, organised with the Royal Aeronautical Society, explored the development and cancellation of the TSR-2 and was attended by 60 delegates al our Midlands site. The second conference, organised with the British Commission for Military History, explored the history of Close Air Support with 50 delegates attending at our London site. The Museum has also continued to develop and nurture the next generation of Air Power specialists by supporting existing doctoral students at Lancaster University, Newcastle University, the University of Bristol and the University of Glasgow. A further doctoral project commenced in collaboration with King's College London, and funding for further projects in association with the Universities of Kent and York are in progress. Due to essential building works the Museum's Reading Room was closed for six months but hosted 104 researchers between August and March. The Collections and Research team were also active in sharing knowledge, including creating records for the Museum's Collections Online and delivering in-person stakeholder engagement sessions. Papers were given at national conferences and talks provided to visiting groups to the Museum, for example community researchers for the Past Present Future NLHF supported project and Age UK groups. The team contributed expert commentary for several media projects, including radio, print and television, and engaged with a number of partner organisations over the year to promote the Museum's collections including Art UK and notably the Berlin Airlift project. Access 8nd Learning London 2023-24 has been the first year since the start of the pandemic where Covid hasn't impacted any of the planned activities. The full schools workshop programme has run, together with a healthy number of events, both onsite and offsite. 663 schools visited the London site, with an additional 15 schools joining us for online workshops. 1,599 learners were engaged through outreach to their schools. While these schools were mainly local, our reach was extended after we were successful in bidding to run STEM {Science, Technology, Engineering, Malhemalicsl outreach days in Hertfordshire schools on behalf of the RAF Youth and STEM team. As these days are designed for Year 7 and 8 students, we also increased our engagement with Page 13

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 secondary age learners. It has been gratifying to see our learner numbers retuming to pre- pandemic levels. In addition to the slandard suile of school workshops focused on History, Science, Citizenship, Design and Technology and Literacy, we also contributed to marking the 80th anniversary of the Dam Busters Raid by creating a schools, resource pack, and to Pride Month by creating a video for secondary schools which highlights LGBTQ+ people in the RAF. We took part in two nationwide initiatives", Kids in Museums Takeover Day, where children performed tasks usually undertaken by Museum staff, and Art Fund's Wild Escape project which culminated in a dance performan al the Museum. Year 6 STEM Days and Scouts Air Researcher Activity Badge Days sponsored by the RAF were oversubscribed throughout this period, and in 2024-25, we will be sponsored to deliver an additional two dates to respond to demand. Access and Learning, Midlands 2023-24 figures for the Midlands show that we have remained at pre-covid numbers for the second consecutive year, with an increase in both the number of schools visiting the Midlands site and in online engagement. This suggests that both types of engagement are still required by schools. The Midlands engaged with 626 schools.. ofthese 528 were onsite, 78 online and 20 offsite. In total we engaged with 44,909 learners.. 29,940 onsite and 14,969 offsite and online. Aside from our core learning programme of school workshops with a focus on History and STEM, we have expanded our events and outreach offer. Our Summertime Advanced Aeronautical Residency (STAARI programme lebrated its sixth year. Supported by sponsors Northrop Grumman as well as our partners from RAF Cosford, and Tablet Academy ITA Education), in 2023-24 the programme was delivered to 40 young people. We also delivered a variety of events on behalf of our key partners, the RAF Youth STEM team. This included eight Key Stage 2 STEM Days, four Glider Challenges, Ihree Scouts Air Activity Badge Days, and for the first time, five outreach STEM days. We were successful in our bid to deliver five STEM days to schools within Mid-wales, a region that we have been keen to improve engagement with. We also hosted the third annual Forces in STEM event, considered a flagship STEM event forthe RAF Youth STEM team, and welcomed over 1,000 young people to the Museum to participate in over 35 activities delivered by over 25 partner companies. The demand for these free events has increased exponentially since the Pandemic, highlighting the need to continue offering learners these opportunities. For 2024-25, we are increasing our capacity for the three Scouts Air Activity Badge Days, from 200 Scouts per day to 600, to meet demand. Strategic Priority 2: Inspiring our people within a dynamic, diverse and collaborative culture The RAF Museum staff team, including those of its trading subsidiary, comprises over 238 employees and c.400 volunteers, and includes well-established work experience, traineeship and apprentIShIp programmes. Our priority is to ensure that individuals are proud to be part of a brilliant and diverse leam, feeling valued, supported and appropriately skilled and rewarded, working positively together to deliver our vision. We actively promote and progress equity, diversity and inclusion, with the support of our EDI Working Group, and continue to encourage and underpin best practice. Page 14

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 The Inspiring Everyone.. RAF Museum Midlands Development Programme provides an amazing opportunity to broaden engagement and support learning and skills development for our visitors, local communities and Museum team (volunteers and employees) through both the Development phase and future Delivery phase, and new roles have already been recruited to. During the year our HR and Volunteering team have designed and delivered Effective Recruitment and Effective Performance Management Training sessions for all managers and supervisors, introducing a new Recruitment Policy and improved prosses, to enhance Confiden and skills and ensure a fair and consistent approach. Departmental facilitated discussions and action plans in response to the Museum's People Engagement Survey have encouraged a culture of collaboration and mutual trust, whilst ensuring that individuals are listened to, valued and well informed. Our work experience programme aims to break down barriers to museums and heritage careers, offering an oversight across the wide range of Museum activities (Visitor Experience, Access and Learning, Retail, HR and Volunteenng, Events, Communications and Marketing, Exhibitions and Interpretation, Archives, Library and Research and Conservation teams) so that students can see the variety available. During National Careers Week {4 - 9 March), the Museum hosted a virtual insight day with Speakers for Schools- a charity that supports social mobility by providing young people with work experience opportunities. The insight day was delivered via livestream to 70 young people from the Midlands area and was developed and presented by the Apprenticeship and Skills Pathway Manager. Each different museum department was explored in detail, and small projects and polls set to encourage engagement. The Museum has also partnered with Movement to Work- a Youth Employability Charity that aims to provide experiences and opportunities for NEET (Not in Education, Employment or Training) young people. Due to the Museum's pledge and success with the work experience programme, we have been nominated for the Best Newcomer Award at the Youth Employability Awards by Movement to Work. 11 has been a busy and exciting year for Volunteering with nearly 400 active volunteers in total 172 at London, 180 at Midlands, 22 at our Stafford store, and 12 volunteering remotely. Our volunteers donated a total of 19,814 hours in 2023-24, an increase of 10,271 hours on the previous year- 13,004 hours were donated al Cosford, 6,605 hours at London and 205 hours for those volunteers supporting the RAF Museum Midlands Development Programme. Volunteers are now assisting in nearly every Museum department across our three siles. During 2023-24 year we have recruited volunteers for both existing and new roles. In London the Family Event Maker role was created. In the Midlands a new role was created to assist the Retail team with the Spiffire Open Cockpit. Much of our volunteer activity has been linked to the Midlands Development Programme, with nine new roles created for the Development Phase, while funding has supported an audit of our current volunteers, skills and migration to a new volunteer management system which has markedly improved onboarding and communication. Strategic Priority 3: Embedding an entrepreneurial, agile and sustainable approach The Museum's Commercial Strategy, managed through the trading company, focuses on maximising commercial opportunities and income generation, while delivering new and Page 15

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 improved experiences for our visitors. RAFMEL'S net profit after tax for the financial year 2023- 24 is £1,178,00012023'. £724,000), its most successful year to date, £301,000 above budget. Bolh our public siles reported visitor numbers above annual targel, with London at 496,250 (18Q/o above) and Midlands 433,057 (10/0 above). Numbers have been supported by the return of international tourists in London and the Museum's public events programme, with the Cosford Air Show al RAF Cosford attracting 55,000 visitors to our Midlands site. Other events have included our 1940s Week and Vintage Fair, Community Day and Hercules Flypast in the Midlands, and our Pilot Training Programme in London. Although ULEZ was expanded to coverthe London site during the yearwe have not seen any adverse impact on visitor numbers or parking revenues thus far. Retail performance in particular has supported increased profits with strong retail margins and conversion rates at both sites. The London catering and events contract went out to tender during the financial year and was awarded to Graysons (from 4 January 2024)., with the Midlands Catering offer continuing to be delivered by Restaurant Associates. In line with our Fundraising Strategy and Plan, we continue to focus our efforts on campaign fundraising for the Inspiring Everyone.. RAF Museum Midlands Development Programme, building our pipeline with the support of the Museum Fundraising Board, while also delivering essential revenue fundraising to support core activity. Strategic Priority 4: Leading the way with brilliant basics The Museum's Collections Development Strategy and associated policies and procedures are entral to our delivery of effective museum managemenl and our audien engagement. After 50 years of fomial collecting, the Museum continues to collect stories and objects lo reflect the whole history of the RAF, including our priority lo represent today's seNice. The team also continues work to rationalise the collection, improve storage and conservation, and to open up a¢$S to connect with all our audien$ and share the rich and diverse story of the RAF through its people, culture, technology, timeline and places. Objects are collected, preserved and used proactively for a clear purpose of engagement, including exhibitions, events programmes and research, in accordance with identified dynamic collecting priorities. The Museum's London site includes a hub for small objects conservation, which is complemented by the Museum's considerable large object conseNation expertise at our Michael Beetham Conservation Centre IMBCCI al our Midlands sile. During 2023-24, the work ofthe Museum's conservation team was dominated by aircraft move activities alongside care and maintenance of aircraft and large objects on display. A total of 17 aircraft were moved to and wilhin the Midlands sile, including the Wellingion T.X to the new Bomber Command exhibition following a 13-year restoration project. 14 aircraft were moved to and within the London site, including a replica Mew Gull and the Westland Wallace for the new Intetwar exhibition. The Museum is in the eleventh year of a comprehensive Collections Review, with its Collections Review Committee assessmenl surveys making recommendations for action in line with the Museums Association's Code of Ethics. Vvhere objects or aircraft are duplicates, or fall outside the Museum's Collection Development strategy, wherever possible these are Page 16

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 either offered as part of a proactive loans programme or gifted to Accredited museums following the Museums, Association Disposals Toolkit guidelines. All disposals are approved in accordance with the RAF Museum's Disposals Policy and Pr0dUreS. During the year, five aircraft were transferred to new museum homes. The team based at our Stafford store have supported the Inspiring Everyone.. RAF Museum Midlands Development Programme through a range of activities lo document objects, account for hazards, improve storage arrangements and support the Collections Review. Strategic Priority 5: Connecting with communities and partners Exhibitions and Interpretation CcreatIon was key to the Interwar exhibition development. The team worked with local communities to develop a timeline representing social and RAF developments during the period. Dance students at Middlesex University co-created a film which visitors use to learn to dance the Charleston. Students from the Animation course at the University produced an innovative film introducing the interwar period to visitors. Local school children worked with the team to develop an interactive in which visitors create their own squadron badge. CcreatIon is also central to the Inspiring Everyone.. RAF Museum Midlands Development Programme. Extensive consultation has been carried out with community groups, such as Telford and Wrekin Young Carers, Carers Café attendees and the RAF Cadets, to define our approach lo content and design. A programme of co-design workshops is developing interpretation and design as a collaborative process. For example, workshops with our Midlands Access Panel have explored the use of audio visual experien$ in the new exhibition and methods of aircraft access. Community Engagement, London We continued to play a key role in local forums including the Grahame Park Strategy Group and Colindale Consortium. This year we joined the group developing a Cultural Strategy for Barnet. Relationships which continued this year included a series of bi-weekly sessions for Age UK members, partnering with Barnet Libraries to launch theirsummer Reading Challenge, and contributing activities as part of Burnt Oak Library's 'Saturday Socials,. Grahame Park Independent Living Group returning for their annual picnic, and Barnet Young Carers enjoyed facilitated sessions at the Museum. A local reading group and an art group continued to meet weekly in the community room. The pholographs resulling from a visual storytelling project with local residents went on display in our community gallery. The Historic Hendon talk {which proved so popular during lockdown) continued to be offered to care homes, demenlia groups and older people groups (bolh in-person and online). In the Easter and summer holidays, the Museum once again ran Friday afternoon activities for local children in receipt of free school meals as part of BACE Holidays (Barnet. Active. Creative. Engaging. Holidaysl organised by Barnet Council and Young Barnet Foundation). A relationship which re-started post-Pandemic was that with Home-start Barnet who joined us once again, this time for sea-themed activities in the hangars. Page 17

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 New relationships initiated and developed this year included sharing RAF stories as part of an Armed Forces Day event at the Royal National OrthopaediG Hospital and representing the Museum as part of'urban Gamez'_ a free to attend sport event on the Grahame Park Eslate. Together with the London Borough of Barnet, we hosted an afternoon-tea to lebrate the 75th anniversary of Windrush and to Collect Windrush stories from local residents. We also offered research skill support to 'The Community Researchers,, a group of local residents with an interest in exploring specific aspects of the history of Colindale and Grahame Park. In March 2024, we hosted our first London lfiar event, where approximately 300 members from North London Muslim Scout groups came together to take part in various family activities and to break their fast. For many, this was their first visit to the Museum. We connected with ourfamily audience in a variety ofways.. a Windrush 75 Family Day in June which celebrated local connections to Windrush and highlighted the RAF story which is such a key part of Windrush., lce monthly 'Little Swifts, sessions for the under-5s', and free storytelling in local schools to celebrate Black History Month. To mark the Coronation of King Charles11 I, a Coronation Quiz, a marching and military music resource, and a Royal aircraft blog were produced. We continued to connect with our young adult audience via the Museum's Youth Panel who participated in a summer project where they curated a display to mark the 75th anniversary of the Berlin Aitlift. We engaged with older audiences by joining with other local organisations for a large Silver Sunday event held at Middlesex University. Working with the London Borough of Barnet, we hosted a showcase of sustainability projects in Barnet Schools. We also took part in a cultural afternoon at a local school which focused on local history and the importance of the Museum as the cradle of aviation. Led bythe Communily Engagement Manager, the RAF Museum London was re-accredited as a Dementia Friendly Venue, communicating to visitors and staff that it is accessible to people living with dementia and their families. Community Engagement, Midlands The Inspiring Everyone.. RAF Museum Midlands Development Programme has been a key focus of engagement this year, including piloting of future projects, with events held onsite and offsite, hosting of community groups and other Museum-led activities. Digital Skills for over 60$ and two creative arts projects. In April 2023, we had held our first Open Family Iftar in partnership with Equalinks CIC and a Muslim Scout group, welcoming 103 guests, with our second Open Family Iftar in March 2024, welcoming 187 people. In June 2023 we held our first Community Day in partnership with Telford and Wrekin Interfaith Council sharing stories of RAF personnel from diverse backgrounds, with many people attending thal had not been to the Museum before. In August 2023 we held our first Midlands-focussed Access Advisory Panels- one on-site and one online. All members are registered as volunteers so that they can access the associated Page 18

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 support. The panels are held three times a year and contributions so far have included consultation on both the outdoor realm and the prayer room to support the RAF Museum Midlands Development Programme. Carers Café activity piloting sessions have gone from strength to strength, with 6-10 regular attendees each month and we have established a Carers Café Social, which takes pla monthly and is an opportunity for carers to come along for an informal chat. We have continued to engage a variety of groups. Examples of these are the male carers group from Telford and Wrekin Council for Voluntary Service, who we welcomed for a tour and handling session. We also welcomed a group of carers from Shropshire for Carers Week, the second year we have been involved with Carers Week. Other groups that visited have included Dementia Singing and the Friendly Faces group from Wombourne who provide activities focused on being social. A co-creation project with a group of young carers resulted in the design of new placemats for the Museum's restaurant. The Community Engagement Manager and volunteers delivered sessions and activities offsite including taking part in Armed Forces Days, one at Shrewsbury Castle and the other in Telford. The Museum was also involved in the Black County Living Museum's 1940s weekend in July 2023, where we took along the Spitfire cockpit. Over 1,200 people enjoyed silting in the cockpit and trying on original RAF uniforms. Our volunteers ran a co-creation project with Vvheatlands Care Home working with the residents of the home to create an immersive loan box using items from the Museum's Handling Collection. Page 19

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 Perfomiance Analysis The Museum uses a number of KPIS to regularly measure and assess its performan and these are reported to the Board on a quarterfy basis and reviewed by management on a monthly basis. Key Perfomiance Indicator: Visitor numbers (including events such as the Midlands Air Show) London Midlands Total Trading income £ Number of learners- onsite, online, offsite London Midlands Total Visitor satisfaction ratings, Enjoyment London o Midlands Value for Money London Midlands Likelihood to recommend London (net promoter score) Midlands {net promoter scorel 2023-24 2022-23 496,250 433,057 929,307 4,447,000 427,980 395,704 823,684 4,305,000 44,057 44,909 88,966 40,316 40,371 80,687 91° 940/0 89% 910 920A 94° 960/0 730A 830 Social media interaction (no. of Facebook followers, Twitter users, Instagram subscribers and TikTok followers} Social media engagement Ino. of likes, comments, shares) 258,836 250,000 2,212,700 526,000 Visitor Numbers Visitor numbers totalled 929,307 for 2023-24 (2023.. 823,6841, the highest ever outside of the RAF Centenary year in 2018, showing a strong continued recovery from the impact of the Covid-19 pandemic and economic pressures of the cost of living crisis. Trading Income Turnover of £4,447,000 is reported for the year (2023.. £4,035,000) with the increase on prior year land corresponding increase in cost of sales) due mainly to the impact of higher visitor numbers on commercial activity. During the year, a number of Museum staff and other resources were utilised in furtherance of commercial activities resulting in a cross charge of £654,000 {2023.' £693,000). The profit after taxation for the year was £1,178,000 (2023.. £724,000), with a distribution of £1,178,000 Gift Aid lo the Museum (2023.. £724,000). Page 20

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 School Visits London ended the year with a total of 44,057 learners (against a target of 31,000), split between 37,396 formal learners (students in education) and 6,661 informal learners. Of the 37,396 formal learners, 92 % of Ihese visiled the Museum, 4 % took part in online workshops, and 40/0 engaged as part of outreach activities. As in previous years, satisfaction with the learning offer was high. In London, the teacher feedback percentage raling the workshops as 'good' or 'excellent' was as follows. Booking Process 1000/0, Curriculum relevance 99Q/o, Suitability for age group - 970A,' Pupils, enjoyment of the workshop - 95 %, Level of Interactivity - 95 % , The facilitator - 980/0, Location of the session (onsite) - 980kn', Ease of use of the technology {online) - 100 % , Reliability of the technology lonlinel - 100°A', The overall learning experience- 97 %. The Midlands ended the year with a total of 44,909 learners (against a target of 36,0001 split between 29,239 formal learners {studenls in education} and 15,670 informal learners. Of the 29,329 formal learners, 87Q/o Vlslted the Museum, 10 /0 took part in online sessions (workshops and special events), and 3 % engaged as part of outreach sessions. 55 schools and 1,800 learners participated online. Online numbers were high this year owing to the Key Stage 2 and 3 Glider Challenges which {with the prohibitive cost of coach hire for some schools) proved popular in their online fomat. Satisfaction levels continued to be high with teacher feedback percentage rating the following as 'good' or 'excellent': Booking process- 94 % , Facilities - 990/0, Overall Learning Experien 100 %, Staff - 98 % , Expectations met- 960/0. 990/0 of respondents would book a retum visit. Visitor Satisfaction The suNeys show that both sites continue to achieve very high 'Enjoyment', 'Value for Money, and 'Net promoter score, ratings that remain above the industry average. We are also happy to report that both our London and Midlands sites received full accreditation under Visit England's Visitor Attraction Quality Assurance Scheme, with London improving its overall quality score to 89 % and our Midlands site to 940h from the previous year. As a result, our Midlands site has been recommended for a Gold by the site's assessor, and we are currently awaiting confirmation of the outcome. Social Media Interaction Total visits to the Museum's main website were recorded at 7.8 million visits (2023.. 5.4 million) with a total of 2.1 million users visiting the website. This growth has been driven in part by the strategy of running an always on digital marketing campaign that targets families at key moments of their leisure planning. Also, as this website is used primarily as a planning tool for visits, this increase also explains the increase in people returning to the Museum following Covid-19, with both on-line and physical visitors now exedIng numbers pre-pandemic. Page 21

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ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 The quinquennial revaluation of both the freehold (London) and leasehold {Cosford and Staffordl properties comprising the RAF Museum Estate took place in the prior year. For 202> 24, an annual revaluation adjustment of £1,373,000 upwards (2023.. £17,095,000) has been made in the year-end accounts using Ihe annual indices provided by MOD lo comply with Modified Historic Cost Accounting IMHCA) legislation per HM Treasury guidelines. Afterlransfers beeen funds and adjustment for recognised gains or losses on revaluation of rixed assets, the net movement of funds for the year was an increase of £3,623,00012023'. £17,748,000} and total funds carried forward as at 31 March 2024 amounted to £140,402,000 (2023. £136,779,000). Grant in Aid Funding Despite the challenges of recent years, the Museum is fortunate to be in a relatively stable financial position, because we are c.700/0 funded through Government Grant in Aid, and partly because we have a reserves policy in place to mitigate risk and build available funds for delivery of Strategy 2030. The MOD-funded National Museums (including the RAF Museum) were not eligible to a¢$S the Government's £1.57BN Culture Recovery Fund, announced in the early stages of the Covid-19 pandemic, which acknowledged the social and economic benefits that flow from museums, and their importance as a major boost to national resilience, morale and pride, and champions of inclusion, innovation and excellence. However, the Museum is extremely grateful that the RAF as our MOD sponsor department, was able lo confirm a recovery allocation of £1.56M in early March 2021 and £700k in March 2022. This enabled the Museum to mitigate the negative financial impact of the pandemic in order to achieve operational breakeven for 2020-21 (£250k), 2021-221£355k), 2022-231£290kl and to budget for breakeven in 2023-24 (£106k). This recovery allocation has now been fully ulilised. Within this context, the 2023-24 Public Body Review recommended that 'the department and museums should consider building museum financial reserves for future resilience against financial shock events such as a pandemic,. Air Command have therefore allocated an additional £2M in year to establish a Resilience Resetve Fund to protect the RAF Museum from a future financial shock (which could include, but is not limited to, unavoidable closure, irreparable infrastructure failure, major cyber-attack) and provide funds for critical 'invest to save projects, that further support the Museum's resilien. The RAF Museum has not had aCsS to planned capital funds through the MOD for some years, although we are fortunate that additional Grant in Aid capital allocations made within the financial year (for the past three years) have supported us to continue to deliver essential capital project works necessary to maintain and develop our sites for the long term. There has been recognition from Government of the need for significant investment in UK museums, infrastructure national, regional and local with allocations made lo the DCMS National Museums to address issues identified, plus the launch of the MEND fund to support regional museums, but the long-tem need of the MOD-funded service museums has not been addressed. We continue to workwith oursponsorto explore opportunities to indude a planned capital allocation through the spending review in the same way as the DCMS-funded National Museums. Page 23

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 Balance Sheet The value ofthe group nel assets as at 31 March 2024 is £140,402,000 (2023.. £136,779,000). The value of freehold and leasehold property represents 70 % of the Museum's net assets at £98,756,000 (2023.. £98,033,000)., and the value of heritage assets lover the capitalisation threshold and a¢SSioned since 1 April 20011 represents 160h of the Museum's net assets at £22,199,00012023.' £21,627,000) {Note 7a). The Museum Group holds a cash at bank and in hand balance as at 31 March 2024 of £14,320,000 12023. £12,289,000), with the increase primarily due to the establishment of the Resilience Reserve Fund. Trading Company Any non-charitable activities are undertaken by RAF Museum Enterprises Ltd, a wholly owned subsidiary of the Museum, with all profits gifi-aided to the parent charity. The trading company generated total turnover of £4,636,00012023.' £5,057,000) (Note 4b}, with associated costs of sales and overheads of£3,468,000 (2023.. £4,337,000}. During the year, a number of Museum staff and other resources were utilised in furtherance of those activities resulting in a cross charge of £654,000 {2023= 693,000). This resulted in a net profit in the subsidiary of £1,178,000 (2023.. £724,000} (Note 9). Resernes Policy and Funds During the year, and with reference to guidance from the Charity Commission, and further to review and recommendation by the Audit and Risk Committee and Finan and Resources Committee (combined from 1 April 2024 as the Audit, Risk and ReSoUrS Committee), the Trustees have confirmed that as at 31 March 2024 the organisation continues to hold unrestricted and undesignated free reserves (that is funds not tied up in fixed assets or designated or restricted funds) sufficient to cover months of budgeted operational expenditure in order to enable financial stability and act as a safeguard against volatile and unprediclable income streams and unforeseen expenditure or liabililies. Any remaining operational net surplus {i.e., after transfers to I from the fixed asset fund and maintaining free reserves of two months of planned operational expenditure) is transferred to the Strategy 2030 Designated Fund. The Strategy 2030 Designated Fund is used to support delivery of the Museum's current key strategic priorities as detailed in the strategic plan Strategy 2030 including.. planning for future capital development al both sites,. ensuring the sustainability of the eslale,. recording of contemporary stories of RAF men and women., and development of the Museum's collection through new acquisitions. The RAF Museum Midlands Designated Fund holdsfunds earmarked to support the Museum's priority £27M RAF Museum Midlands Development Programme as part ofthe Cosford Master Plan and Strategy 2030 ambition. In addition, the RAF Museum Midlands Match Designated Fund was approved by Trustees to ringfence the Museum's commitment of funding to t invested in the Inspiring Everyone.. RAF Museum Midlands Development Programme. In line with the Museum's reserve policy, unrestricted surplus funds of £1,631,000 have been transferred to the Museum's Strategy 2030 Designated Fund. The closing balance held in designated funds at 31 March 2024 is £7,093,00012023.' £5,528,000). Page 24

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 The Finance and Resources Committee monitors the levels of reseNes at the Museum on a quartetly basis as part of their review of the Managemenl Accounts. The Board of Trustees reviews the reserves policy when circumstances change and at least annually. Payment of Creditors The Museum's policy, in accordan with the Government-wide standard on the payment of creditors, is to settle all undisputed bills within 30 days or in accordance with the supplier's terms of business. The Museum's actual payment performance during the year was an average of 41 days (2023.. 36 days). Investment Policy The Trustees continually monitor levels of all the Charity's funds. Available fund5 are currently invested in a variety of term deposits to maximise the level of return bul with minimum risk. The amounts and terms of the investments are based on the Trustees, opinion of the immediate and future needs of the Museum and the Chair of the Finance and Resources Committee reviewed the principal deposits during 2023-24. Environmental Policy and Sustainability Report The Museum has committed to address the climate emergency through our operation and with our audiences. We have established a Sustainability Group to engage with our team and ensure environmental principles are always at the forefront of our thinking. We will operate in an environmentally sustainable way, applying the principles of sustainable development for the benefit of current and future generations. The Museum's Sustainability Commitment agrees four areas of focus.. Reduce our operational impact- committing to carbon net zero by 2030 and reducing the negative effects of our activities Develop a resilient and diverse estate - prepare for the changing climate and support diverse and rich ecology Enable our people - provide the knowledge, tools and support to help us achieve and exceed our commitments Share and engage with our audiences - share the Museum's and RAF'S sustainable journey, advocate awareness and action. Key points of the commitment are.. Operate as carbon net zero by 2030 Commit to sustainable development for the RAF Midlands Development Programme Reduce our consumption of non-renewable fuels and water across the Estate Establish an environmental management system (EMSI in line with ISO 14001 Communicate and inform audiences and our staff on climate change Provide resilient and biodiverse landscapes. The Museum already has a number of initiatives in place which underpin Ihe creation of a more sustainable and environmentally friendly organisation. These include energy conservation measures, a comprehensive recycling programme and new building construction which is consistent with reducing the Museum's carbon footprint. The Sustainability Group has Page 25

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 established our Sustainability Baseline (Scope 1 and 2) for each site and is developing a Sustainability Pathway to enable us to progress these initiatives and achieve our commitments. The Museum measures performance againsl Ihe Greening Government Commitments (GGCI framework for 2021- 2025, as summarised below against the baseline year 2017-18. 2017-18 Baseline 2023-24 Actual Headline Target baseline Notes Scope 3 information is not available for 2017-18 and is incomplete for 202>24. The figures shown represent scope 1 and 2 emissions only. Reported emissions are provided by energy suppliers. Food waste information is incomplete and has been excluded. We are working to include this in future years. London 66 %,' Midlands 57Q/o Working towards net zero by 2050 (reduction of 300A overall and 100/0 direct emissions) 1,584 tonnes C02 1,372 tonnes C02 13% reduction Reduce the overall amount of waste generated by 150 123 tonnes 65 tonnes reduction Increase the proportion of waste which is recycled to at least 700/0 of overall waste 9pp below target 32/0 61% Reduce water consumption by 80/0 Not available London only, data for other sites and 2017-18 not available. 7,529 m3 NIA The following figures represent the Museum's best estimate of the impact of our activities on the environment at a local and global level through the resources it consumes, the waste it produces, its work patterns and the products it buys. Greenhouse gas emissions Non- Scope 1 financial Scope 2 indicators (tonnes C02} Energy consumption Ilhousand kWh} 2023-24 1,196 177 2022-23 2021-22 2020-21 1,072 308 608 546 513 457 Not currently available 2017-18 758 826 Scope 3 Gas Electricity 5,410 2,525 7,935 5,786 2,637 8,423 1,684 2,420 3,309 1,962 4,117 2,350 Total 4,104 5,271 6,467 Total energy ost 889 628 463 403 414 Page 26

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 Financial indicators Cost of business i£oooi travel Emissions include gas burned onsite and fuel for vehicles owned by the Museum. We continue to make progress on emission reductions, with the replacement of aged assets, including lighting replaMentS and careful control of plant. However, in line with our Sustainability Commitment and developing Pathway, we target to lower our operational emissions through investment in low carbon plant and careful controls and timings. 261 204 127 31 186 The Museum has infrequent travel by air and information on travel is not routinely captured., air travel is treated as exceptional travel by default with lower carbon options preferred and a commitment made not to travel by air within the UK mainland. The Museum has switched to a ntralIsed travel booking system and we are beginning to collect data on the amount of usage, type of travel (car hireltrain) etc and the purpose of the journey, with the aim of reporting on this in 2024-25. The Museum uses videoconferencing and collaboration systems, and Museum staff are encouraged to challenge whether in-person meetings at other siles are necessary and whether the meeting could instead be conducted online instead. However, the Museum remains conscious of the positive benefits creatively and for personal wellbeing to our teams coming together in person, which is reflected in ils hybrid working guidan. Waste management Non- Residual financial waste indicators {incinerated Ilonnes) for energy) Recycled Total waste recycled Total disposal cost 2023-24 2022-23 2017-18 25 18 83 40 65 61 50 68 72 40 123 32 Financial indicators i£oooi The Museum operates a zero to landfill policy, with residual wasle used as waste lo energy. While overall recycling has improved on the 2017-18 baseline a waste management plan is in place to support further improvements. The Museum has a catering offer at its London and Midlands sites as a commercial operation and we continue to work with our contract catering partners to reduce food wastage. 33 36 NIA Paper use Non-financial indicator (A4 reams) The Museum records paper use within the offices from 2019-20. Reductions have been achieved with the installation of print-on-demand network printers and mandatory double- sided printing as the default. The paper used in advertising, packaging and other areas is not recorded and has been excluded from the above figures. 2023-24 2022-23 2021-22 2020-21 2019-20 440 432 495 309 626 Page 27

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 Water consumption Non- financial indicators Im'l Financial indicators 2023-24 2022-23 2021-22 2020-21 2019-20 Total water consumption 7529 2775 2559 11623 NIA Total water cost 17 12 i£oooi The Museum's London site is metered, however, historic information on water use is not available. Figures provided from 2020-21 are based on eslimaled usage provided by the supplier and relate to the Museum's London site only, as the other sites are leasehold consumption information is not available. Reduction in water use is undertaken on an opportunity basis such as using low water use taps and controlled urinal flushing. In addition, water use on landscape management is limited. The large consumption (and consequent costl in both 2020-21 and 2023-24 is due to major leaks at the London site. Sustainable procurement The Museum's existing contracts do not contain specific requirements for supply chain reporting on sustainability as slandard, although elements of sustainabilily and social value are evaluated in the procurement tender prOss, particularly for major projects. The Museum's procurement policies will be further updated to reflect our commitment to sustainable procurement in 2024-25. Nature recovery and biodiversity action planning The Museum's estate has limited potential lo improve overall biodiversity. However, in line with our Sustainability Commitment we manage and develop our estate to improve and sustain ecology. The Museum's estate contains areas of public grassland, managed planting and more wild areas as well as small copses of trees. The London site contains a swale that serves as an important sile for wildlife in addition lo providing a sustainable surface water run-off. a corner of our London site is purposely left wild, with minimal interventions following a landscape review in 2020 which identified it as an important habitat and source of food for local wildlife. The Museum's Midlands site contains grassed banks which have minimal intervention and trees which link into the nearby woodland,. improvements lo the landscape are planned as part as our Inspiring Everyone.. RAF Museum Midlands Development Programme with additional trees and planting. Climate Change Adaption The Museum inlends to undertake a Climate Change Risk Assessment in 2024-25 to inform a longer-term Climate Change Adaption Strategy and Plan as part of our internal Sustainability Commitment and Pathway. Reducing environmental impacts from Infomiation Communication Technology {ICT) and digital The Museum5 IT department is reviewing the targets of the ICT and digital services strategy 2020-25 however, in the interim, il has made significant progress in the removal of redundant and inefficient IT legacy assets and actively seeks to reuse assets where appropriate. The Page 28

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 IT department has begun a project of server virtualisation to reduce the number of physical servers required. Physical servers used for testing purposes are switched off when not in use. The rollout of video conferencing facilities in 2021-22 has supported colleagues to work from home as well as reducing business travel between sites. Auditors The accounts are audited by the Comptroller and Auditor General. The fee for the audit of the Group 2023-24 accounts was £52,30012023.' £50,175). This includes the NAO fee of £41,000 and Hillier Hopkins fee of £11,300 for the audit of RAF Museum Enterprises Ltd (RAFMEL). So far as I, as Accounting Officer of the Museum, and as we, as its Trustees, are aware.. al there is no relevant audit information of which the Museum's auditors are unaware., and bl we have taken all the steps that we ought to have taken to make ourselves aware of any relevant audit infomiation and to establish that the Museum's auditors are aware of that information. ACM Sir Stephen Hillier GCB CBE DFC Chair Margaret Appleton MBE Chief Executive Officer and Accounting Officer on behalf of the Board of Trustees Royal Air Force Museum 22 July 2024 22 July 2024 Page 29

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 ACCOUNTABILITY REPORT Corporate Governance Report This report sets out the arrangements for the governance of the Museum, including the Board and Committee structure for the Trustees. It specifically shows how the organisation identifies and manages key risks and provides the assurance from Ihe Chair of the Board of Truslees and Accounting Officer. Trustees have complied with their duty in seclion 11 of Ihe Charities Act 2011 to have due regard lo guidance published by Ihe Charity Commission. Truslees are also mindful of the Commission's guidance on public benefit. Page 30

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 Chief Executive OffiCeS report and governance statement The Governance Framework The Royal Air Force Museum is incorporated by Royal Charter with company number RC000922 and is a charity registered with the Charity Commission (registration number 1197541), governed in accordance with the Charter and Bye-laws. On 1 April 2022, all assets, activities and resources were transferred from an unincorporated charity Iregistralion number 2447081 of the same name and address which was governed in accordance with a Deed of Trust dated 4th June 2007 to deliver the same charitable objects. The Museum is an accredited National Museum and non-departmental public body INDPBI obliged to comply with HM Treasury financial reporting requirements set out in the Financial Reporting Manual and the guidance contained in Managing Public Money. There is a Framework Document in place which defines the arrangements between the Museum and its sponsor department, the Ministry of Defence, relating to the receipt of Grant in Aid and the conditions for its expenditure alongside a Partnering Agreement between the RAF and the Museum. The Partnering Agreement and Framework Document relevant to the 2023-24 financial year is effective from 1 April 2022 to 31 March 2027. The Trustees and the Committee Structure The RAF Museum is governed by a Board ofTrustees chaired by Air Chiefmarshal Sir Stephen Hillier GCB CBE DFC, who succeeded Air Chief Marshal Sir Andrew Pulford GCB CBE DL in March 2022. The Charities Act 2011 requires the Trustees to exercise proper stewardship over the Museum and to take care of its collections. The Chief Executive Officer ofthe Museum, Margaret Appleton MBE, is the Accounting Officer responsible to Parliament forthe day-to-day management ofthe Museum as set out in Chapter 3 of Managing Public Money. Trustees are appointed by the Secretary of Stale for Defence in accordance with the provisions of the public appointments process set out in the Office of the Commissioner of Public Appointments Code of Practice. From 1 April 2022, under the new Charter and Bye-laws, appointment terms are of three years and Trustees can be re-appointed for a second term of equivalent length. The number of Nominated Trustees can be between seven and fifteen, which aligns with Governance best practi, while retaining flexibility to manage both planned and unfofeseen resignations. The Board of Trustees may also appoint up to three additional Co-opted Trustees by majority approval to serve on the Board and both co-opted Trustees and other individuals may serve on specific sub-committees to supplement the experience of Board members. The Trustees receive induction training with the Chief Executive Officer and senior leadership team (SLT) and are encouraged to familiarise themselves with the Museum's priorities through work in sul>committees where they are supported by the Museum's executive, and by attending and hosting Museum events and receptions. A Trustee Development Framework is in place and all Trustees are asked to complete a mandatory selection of relevant online courses including Safeguarding Children, Equality, Diversity and Inclusion, Bullying and Harassment for Managers and Unconscious Bias for Managers. Trustees are made aware of governance courses such as the Institute of Chartered Accountants in England & Wales Page 31

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 (ICAEW) online Trustee Training course, developed with the Charity Commission, which provides an overview of charity trustees, legal and financial responsibilities and their strategic and operational considerations. In addition, Board development sessions are now scheduled twice a year ahead of each Board meeting. A Trustee skills audit was completed in 2020-21 led by the Nominations and Governan Committee {NGCI. The Museum also commissioned an external facilitator lo lead a Board effectiveness review (the previous external review was held in 2017-181. The review completed in early 2020-21 highlighting no significant COnrnS and an away day, originally postponed due to Covid, was held to review its recommendations in Dember 2021. The Nomination and Governance Committee has continued lo monitor follow up priorities, and review Board structure, processes and perfOan and a proposal was accepted by the Board (effective April 2024) to combine the Audit and Risk Committee with Finance and Resource5 Committee (to theAudit, Risk and Resources Committee), and Staffing and Remuneration Committee with Nominations and Governance Committee (to the People and Governance Committee} to furtherstreamline the governance structure. A further independently-led review ofthe Museum and its two service museum partners, the National Museum ofthe Royal Navy and the National Army Museum was carried out under the Cabinet offi,$ Public Bodies Reviews Programme in 2022-24. This considered the governance, accountability and efficiency ofthe museums and concluded that they are effective in fulfilling their purpose. The Museum is now following up the review recommendations with its sponsor body and museum partners. During the year, the Museum recruited two new co-opted Trustees in order to better represent and serve the population of the UK in terms of breadth of skills and cultural diversity. The Board of Trustees Sub-committees The Board of Trustees have established a number of sub-committees for specific purposes and to ensure the effective conduct of business. The Board of Truslees is responsible for appointing to the sub-committees from within its membership and all sub-committee actions are taken on behalf of the Trustees as a whole, with recommendations made to the Board as appropriate. For 2023-24 these sub-committees comprise Audit and Risk {providing assuran on issues of risk, control and governance)., Finance and Resources (responsible for financial control, governance and investment), Major Projects and Programmes (responsible for major capital and programme development),. Staffing and Remuneration {providing assurance that the Museum's HR strategy, policies and procedures are appropriate and effectivel,. and a Nominations and Governance Committee (keeping under review the leadership needs of the Museum - both trustee and executive are effective). The Museum also has a Research Advisory Board, chaired by Sebastian Cox OBE, Head ofthe Air Historical Branch oflhe Royal Air Force and an Ethics Advisory Board comprising Trustees and Senior Leadership Team members. The terms of reference of each of these sub-committees have been approved by the full Board. The table overleaf shows the number of meetings and attendan. The Board nomially meets On a quarter, and these scheduled meetings are summarised in the table. Minutes of all Board and SucoMmittee meetings are maintsined. Trustees complete a declaration of Page 32

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 interests each year with an agenda prompt at each Committee and Board meeting regarding any possible conflicts of interest or loyalty. Truslee attendance is shown as the number of meelings altended in relation to the number of meetings held whilst each individual was a member of the relevant committee. The Chair of Trustees also chairs the Nominations and Governan Committee and may attend other committees across the year. The Museum has two subsidiary companies, RAF Museum Enterprises Ltd and RAF Museum Investments Ltd, although the decisions taken by these companies remain primarily their responsibility, summaries of activity are reported through the Board. The following individuals served as Trustees during 2023-24.. Board of Trustees Attendance Air Chief Marshal Sir stephen Chair of Board Chair NGC 11-Ocl-21 314 112 212 John Banks 2&Jul-21 Chair FRC 414 414 414 Josh Chana 5-Oct-23 313 113 Chair SRC Ilerm ended 19-Mar-24 Dr Carol Cole 23-Mar-15 414 212 212 David Cooper 23-Jul-21 414 414 Dr Rodney Eastwood Chair ARC (term ended 19-Mar-24 Chair RAFMEL Board 23-Mar-15 414 313 212 Jonathan Field 23-Jul-21 414 212 414 Matthew Gilpin 23-Jul-21 414 313 212 Page 33

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 Hemma Gooljar Waseem Mahmood Oct-23 313 23-Jul-21 414 314 Julie McGarvey Air Marshal Peter Ruddock 17-May-16 414 414 414 23-Jul-21 414 414 Nick Sanders 7-July-16 Chair MPPC 414 414 The Board Chair is not a formal member of this committee but invited to take part l observe as they wish. Truslees who are members of RAF Museum Enterprises Ltd are shown above. There are five additional non-executive directors. Register of Interests A register of Trustees, interests is maintained. Trustees are required to declare any interest, pecuniary or otheNise, in any matter being considered by the Board. Related Parties are disclosed in Note 17 of the Financial Statements. The Board of Trustees, Performance The Board has supported the organisation to successfully deliver its strategic objectives as outlined in the approved over-arching ten-year Strategy 2030 and Business Plan 202>24. Reports from each sutr*committee are circulated to all Trustees with routine papers for the quartetly meetings of the full Board and SucoMmittee Chairs highlighting any matters of particular interest or concern for the attention of the full Board. There is a wide range of infomiation and data (financial and otherwise} routinely available to Trustees, including detailed management accounts quarterly to the Finance and Resources Committee and summary management accounts quarterly to the full Board, which the Board considers to be adequate management information. Personal Data Loss An incident is defined as a loss, unauthorised disclosure or insecure disposal. Protected personal data is information that links an identifiable living person with information about them which, if related, would put the individual at significant risk of harm or distress., the definition includes sources of information that because of the nature of the individuals or the nature, Sour or extent of the infomation, is treated as protected personal data by the Museum. There have been no such losses during 2023-24. Intemal Auditors The Museum's intemal auditors are RSM Risk Assurance Services LLP (appointed in November 2019}, who work to the Public Sector Internal Audrt Standards and provide an independent opinion for the financial year 2023-24 {contract year five) on the matters subject to review through the annual internal audit programme. The work programme is signed off by Page 34

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 the Trustees, Audit and Risk Committee and the report of the internal auditors is received by that same sub-committee. The tender and appointment of RSM Risk Assurance Services LLP (RSMI was made as a joint initialive with our partner SeNice Museums- the National Army Museum and National Museum of the Royal Navy - to foster the sharing of best practice and economies of scale, including a shared thematic review to be agreed upon by all parties. As part ofthis plan RSM have carried out several reviews for the RAF Museum this past year, including safeguarding., cyber risk", recruitment, retention and succession planning., financial controls around car-parking., a follow-up report on identified management actions from prior year audit reviews, and one shared Service Museums thematic review looking at visitor experien. The intemal auditors provide an annual independent opinion, based upon the audit programme and limited to the work performed, on the overall adequacy and effectiveness ofthe Museum's risk management, control and governance processes. The internal audit opinion for 2023-24 is one of moderate assurance, stating that some improvements are required to enhance the adequacy and effectiveness of the framework of governan, risk management and control. To inform the governan opinion for 202>24, the internal auditors have taken into consideration the g0Veman related elements within each of the assignment reviews undertaken as part ofthe 2023-24 intemal audit plan. To inform the risk management opinion for 2023-24, the internal auditors have considered the risk mitigation procedures within each of the assignmenl reviews undertaken. In addition, their governance and risk management opinion was informed by attendance at meetings of the Audit and Risk Committee throughout the year. The results of the internal audit assignment reviews have been taken into consideration in determining the internal control opinion for 2023-24. Of the five assurance assignments, it was concluded that the Board could take reasonable assurance in four areas and partial assurance in the other. The Audit, Risk and Resour5 Committee accepted the opinion and findings of the internal auditors. Progress against recommendations and risk status will continue to be monitored by the Committee as part of the internal audit follow up review process. RSM'S five year contract is now complete and during 2023-24 the three Service Museums undertook a further joint tender process, appointing Azets to provide intemal audit services for the next three to five financial years from 2024-25. Exlemal Auditors The external auditor of the Museum is the Comptroller and Auditor General with the audit conducted by the National Audit Office. The external auditor of its trading subsidiary, Royal Air Force Museum Enterprises Ltd, is Hillier Hopkins LLP. The accounts are consolidated. Risk Management The Museum's internal control system is designed to manage risk to a reasonable level, rather than eradicate all risk of failure. Therefore, il can only provide reasonable and not absolute assurance of effectiveness. In managing risk, we identify the opportunities and risks in achieving our strategic objectives, evaluate the likelihood of those risks being realised, the impact should they be realised and the controls in pla to manage them efficiently and Page 35

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 effectively. The Museum's approach to risk management and the process for implementation are documented in a Corporate Risk Management Strategy (reviewed and updated in 2021- 22). The strategy is supported by our Strategic Risk Register, which groups our highest priority risk areas into key strategic risks which is reviewed regularly by the senior leadership team. The Audit and Risk Committee review strategic risks at each meeting and the Board review annually. Each department holds a detailed operational risk register and updates them regularly with input from their teams, with departmental risks reported to group directors and all new risks or residual risks that have been increased noted. Project and programme risks are included in status reports to the executive Programme Board. Any Departmental or Programme risks rated redlhigh when mitigated are summarised in a Corporate Risk Register which is reviewed quarterly by the senior leadership team and at each meeting by the Audit and Risk Committee. Risk management overall is viewed as a dynamic process which actively seeks to incorporate good practice. It is responsive and current and is managed through regular review of both internal developments and external factors the political, social, economic, demographic, technological, environmental and legal developments that may Influen our exposure to risks or opportunities. As an NDPB the Museum has a low-risk appetite in relation to compliance, regulation and to our key strategic risks. In areas where we aim to be relevant and influential, we are prepared to take calculated risks. Risk appetite has been set by the Trustees and is reviewed annually for appropriateness by the senior leadership team and Audil and Risk Committee. The senior leadership team monitor whether our overall risk profile is commensurate with our risk appetite on an ongoing basis. The key risks identified, and the actions taken to dale are set out below. The strategic risk of financial instability due to macro-economic factors is substantially mitigated by confirmed annual Grant in Aid, alongside the Museum's proven agility to flex variable and project costs. Nevertheless, a high proportion of planned Museum spend is ne$Sary to support effective operations and lor drive visitor numbers l income, and cost reductions may impact detrimentally on Museum outcomes and impact even where activities are not immediately essential. Identified risks for the financial year ahead include the negative impact of lowerthan targeted visitor numbers on self-generaled income. We have factored the temporary closure of Colindale station into our London numbers, but delays to the reopening of the station or lack of suitable altemative transport options could reduce visitors further, although early indications are that the impact is manageable. Sector challenges to retention and recruitment in response to cost-of-living pressures is mitigated by an acknowledged pride in working for the Museum and a clear commitment to investing in our staff team and the development of a dynamic, diverse and collaborative culture. Failure to raise income to agreed revenue and campaign fundraising targets would delay delivery of agreed projects and programmes such as the ambitious Inspiring Everyone.. RAF Museum Midlands Development Programme. Although there will be morale I reputational risk if the latter target is not reached, subslantial progress has already been made, and work will not commence until funds are fully in place so the Museum is not at risk financially. Page 36

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 The RAF Museum's Strategy 2030 outlines a robust financial model into the future, with operational savings continued to be identified and our resourcing model stream-lined, fundraising and trading activity to be increased and diversified, and programmes developed that attracl funding support, to enable significant investment and development at both siles. There is and will continue to be continued pressure on Government funding and competition for funding from donors and trusts and foundations. The Collections Review supports both care of the collection and development and delivery of our programming. An important strand of this review is delivery of digitisation of the collections, opening access to audiences while ensuring collection care is maintained. This will require considerable investment which is the reason for the risk of 'failure to adequately care for collections, remaining at a medium level assessment. As WTth the risk of financial instability, the risks from major incidents of any nature can only be mitigated to a certain degree, but the creation of the Museum's Resilience Reserve Fund with support from our sponsor body is a substantial mitigation. Museum plans include phased capital investment in infrastructure and continued assuran of effective processes in place. Further to considerable progress thus far, one of the key strategic priorities for the Museum and a focus for the next financial year is to continue to invest in building the strong and sustainable basic foundations required to fully achieve the future vision. Assurance Statement by the Audit, Risk and Resources Committee The Audit, Risk and Resources Committee are reasonably confident that the reliability, integrity, quality and comprehensiveness of the aSsUranS provided by the RAF Museum's internal and external auditors, and by management, are presently sufficient to support the Board and Accounting Officer in their decision making and in the fulfilment of their accountability obligations. Internal controls are monitored during the year by the RAF Museum's executive leam and independent internal audit review and findings reported to the Audit, Risk and Resources Committee. The Audit, Risk and Resources Committee will ontinue to draw to the Board's and Accounting Officerfs attention any matters of concern. Page 37

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ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 Remuneration and Staff Report In accordance with the Financial Reporting Manual the RAF Museum has prepared this report containing rtain information about directors, remuneration. 'Directors' is interpreted to mean persons in senior positions having authority or responsibility for directing or controlling the major activities of the Museum. The figures in the remuneration and staff report are subject to audit. The total number of employees whose emoluments for the year exceeded £60,000 is given in note 6, together with information on staff numbers and costs. None of the directors were members of the Principal Civil Service Pension Scheme {PCSPSI and the Museum did not fund any Civil Service pension contributions for them in 202>24. The Museum, under the auto-enrolment scheme (NESTI made employer's contribution to the directors, pension at the rate of 5 % of their salary. Perfomiance bonuses paid to directors are non-contractual. All employees, including directors, received £100 shopping vouchers as a thank you for their commitment and perfomance during 2023-24, which are included as benefits in kind in the table below. All of the directors have contracts of employment carrying a period of notice of three months. Perform ance- related pay and bonuses Single figure of total remuneration Salary Benefits in kind Pension Benefits TOTAL TOTAL 2023-24 {2022-23) 2023-24 {2022-23) 2023-24 (2022-23) Nearest £100 2023-24 12022-241 2023-24 2022-23 £000 £000 £000 £000 £000 Margaret Appleton MBE CEO 115-120 1110-115) 1>51_) 100 {100) 115-120 110-115 Marguerite Jenkin Director of Finance and Resources 95-100 {90-951 1>5 () 100 {100) 95-100 90-95 Barry Smith Director of Visitor and Commercial Development Karen Whitting Director of Content and Programmes 95-100 {90-951 1>5 () 100 {100) 95-100 90-95 95-100 {90-951 1>5 (_) 100 (100) 95-100 90-95 Page 39

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ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 25th percentile remuneration Median remuneration 75th percentile remuneration 2024 2023 /0 change £23,325 £22,216 4.99 % £28,849 £28,437 1.45/0 £35,330 £33,351 5.93/0 The Board of Trustees comprised eleven members at 31 March 2024, including one ccpopted Trustee, none of whom were full time employees of the Museum and they were reimbursed with £5,925 in expenses (2023.. £4,737). Ten Trustees claimed expenses 12023.. Eighll. Expenses claimed comprise reasonable travel, subsistence and accommodation as required to meet Trustee responsibilities in accordan with the Museum's Travel and Subsisten Policy. Sickness absence (not subject to audit) The Royal Air Force Museum employed 20212023.. 200) members of staff as at 31 March 2024. In addition, the trading subsidiary employed 3612023.. 421 members of staff at 31 March 2024. Periods of sickness absence are recorded in full days. The average number of days of sickness absence was 5.5 days per person {2023.' 2.25). Long term absences have been excluded. Pension Costs and Benefits The Museum's accounting policy in relation to Pensions is provided at Note 1 to the Financial Statements. From May 2014 the Museum has automatically enrolled all employees into a National Employment Savings Trust INESTI pension scheme unless the employees choose to opt out. The NEST pension scheme is a defined contribution pension scheme that was created as part of the government's workplace pensions reform underthe Pensions Act 2008. The assets of the scheme are held separately from those of the Museum and the Museum is unable to identify our share of the liability, employer's contributions are charged to the statement of Financial Activities as they occur. Pension benefits for a small number of longer serving staff are provided through the Civil Service Pension Scheme (CSPS), comprising the Principal Civil Service Pension Scheme (PCSPS) and alpha. The CSPS is an unfunded muhi-employer defined benefit scheme but the RAF Museum is unable to identify its share of the underlying assets and liabilities. A full actuarial valuation was carried out as at 31 March 2020 (signed 2021 }. Details can be found on the CSPS website here.. htt s.1.C1VI1SeI nsionscheme.o .uklaboul-us/scheme-valuationsl. For 2023-24 employer's contributions of £88,768 were payable12023.' £86,758) through the CSPS. The applicable rates for the CSPS are shown below= Gross Salary Rate % £77,001 and over 30.3 £45,501- £77,000 27.9 £23,001- £45,500 27.1 Up to £23,000 26.6 Page41

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 The contribution rates reflect benefits as they are accrued, not when costs are actually incurred, and reflect past experience of the scheme. Pension benefits are provided through the Civil SeNice pension arrangements in pla prior to 30th July 2007, with the unfunded cost of benefits met by monies voted by Parliament each year. Any members affected by the Public Service Pensions Remedy were reported in the 2015 scheme for the period between 1 April 2015 and 31 March 2022 in 2022-23, but are reported in the legacy scheme for the same period in 202&24. Further details about the Civil Service pension arrangements can be found at the website.. w.cIvIlserV1Ce. ov.ukj ensions. Reporting of civil SeiCe and other compensation schemes- exit packages (Comparative data for the prior financial year is shown in brackelsl Number of compulsory redundancies Total number of exit packages by cost band Exit packagè cost band Number of other departures agreed £10000 10 0025 000 25 OOlk£S0 000 50 001£75 000 otal number of exit acka es otal resource cosu £ £17,633 £17,633 Redundancy and other departure costs are, where appropriate, paid in accordan with the provisions of the Civil Service Compensation Scheme, a statutory scheme made under the Superannuation Act 1972. Exit costs are accounted for in full in the year of departure. Vvhere the department has agreed early retirements, the additional costs are met by the department. 111-health retirement costs are met by pension scheme and are not included in the table. Trade Union Facility Time (not subject to audit) Table 1 Full-time equivalent 2023-24 2022-23 Number of employees who were relevant union officials during the relevant period Table 2 Numbor of employees 2023-24 2022-23 Percentage of time Table 3 Figures 2023-24 2022-23 Total cost of facility time Total pay bill Perntage of the total pay bill spent on facility time 233 6,894,000 452 6,118,000 Page 42

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 Table 4 Percent 2023-24 2022-23 Time spent on paid trade union activities as a percentage of total paid facility time other Staff Costs Further details relating to the Museum's other staff costs can be found in Note 6 to the financial statements. Volunteers (not subject to audit) The support of our volunteers is vital to our Museum activities, with a diverse range of people generously giving their lime to work alongside our paid staff team in a wide variety of areas, from front-of-house roles interacting with our visitors, to behind-the-scenes work caring for our collection in person or researching funding opportunities online. They contribute their skills, time and enthusiasm, connect with a diverse range of people as part of the RAF Museum family, and help us create meaningful experiences for them as individuals and for our audien$ at our London or Midlands sites, or remotely by supporting projects such as RAF Stories. During 2023-24, 386 individuals worked with the Museum in volunteer roles contributing a total of 19,814 hours12023'. 9,5431. Page 43

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 Parliamentary accountability and audit report All expenditure is regular and has been applied as intended by donors and the Museum's sponsor body. There are no conlingent liabilities, gifts, fees, charges or losses and special payments requiring further disclosure that have not been reported elsewhere in these financial statements. This paragraph is subject to audit. Expenditure trend over the past five financial years is shown below.. Long term expenditure trend 20,000,000 19,000,000 18,000,000 17,000,000 16.000,000 15.000,000 14,000,000 2020 2021 2022 2023 2024 Expenditure reduced in 2021>21 due to the impact of the Covid-19 pandemic, with some projects paused, sites closed to the public and staff placed on furlough, and a corresponding decline in trading costs. In 2021-22 spending returned to pre-pandemic levels as both sites reopened during the year, with the Museum's recovery stabilising in the financial year 2022- 23, the first full year of trading activity post-pandemic. The financial year 2023-24 has seen the Museum's expenditure at a similar level to prior year. Staff costs have increased over and above the increase in the Museum's grant in aid (which has declined over the period in real temisl, and resources have been carefully managed to meet the target of operational breakeven. Approved by the Board of Trustees on 1 July 2024 and signed 22 July 2024 on its behalf by: ACM Sir Stephen Hillier GCB CBE DFC Chair Margaret Appleton MBE Chief Executive Officer and Accounting Officer on beha ofthe Board of Trustees Royal Air Force Museum Page 44

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ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 Conclusions relating to going concern In auditing the financial statements, I have concluded that the Royal Air Force Museum and its Group's use of the going concem basis of accounting in the preparation of the financial statements is appropriate. Based on the work I have performed, I have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Royal Air Force Museum and ils Group's ability to continue as a going concem for a period of at least twelve months from when the financial statements are authorised for issue. My responsibilities and the responsibilities of the Board of Trustees and Accounting Officer with respect lo going concern are described in the relevanl seclions of this report. Other information The other information comprises the information included in the Annual Report, but does not include the financial statements nor my auditor's report thereafter. The Board of Trustees and Accounting Officer are responsible for the other information. My opinion on the financial statements does not cover the other infomiation and, except to the extent otheiSe explicitly stated in my report, I do not express any form of assurance conclusion thereon. My responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or my knowledge obtained in the audit, or otherwise appears to be materially misstated. If l identify such material inconsistencies or apparent material misstatements, l am required to determine whether this gives rise to a material misslatement in the financial stalements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, l am required to report that fact. I have nothing to report in this regard. Opinion on other matters In my opinion the part of the Remuneration and Staff Report to be audited has been properly prepared in accordance with HM Treasury's Government Financial Reporting Manual. In my opinion, based on the work undertaken in the course of the audit.. the parts of the Accountability Report subject to audit have been properfy prepared in accordan with HM Treasury's Government Financial Reporting Manual., the information given in the Perfomiance and Accountability Reports for the financial year for which the financial statements are prepared is consistent with the financial statements and is in accordance with the applicable legal requirements. Page 46

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 Matters on which I report by exception In the light of the knowledge and understanding of the Royal Air Force Museum and its Group and its environment obtained in the course of the audit, I have not identified material misstatements in the Performance and Accountability Reports. I have nothing to report in respect of the following matters which I report to you if, in my opinion.. Adequale accounting records have nol been kepi by the Royal Air Force Museum and its Group or returns adequate for my audit have not been received from branches not visited by my staff., or I have not received all of the information and explanations I require for my audit., or the financial statements and the parts of the Accountability Report, subject to audit are not in agreement with the accounting records and returns., or certain disclosures of remuneration specified by HM Treasury's Government Financial Reporting Manual have not been made or parts ofthe Remuneration Report to be audited is not in agreement with the accounting records and retums., or the Governance Statement does not reflect compliance with HM Treasury's guidance Responsibilities of the Board of Trustees and Accounting Officer for the financial statements As explained more fully in the Statement ofthe Board ofTrustees' and Chief Executive Officer's Responsibilities, the Board of Trustees and the Accounting Officer is responsible for.. maintaining proper accounting records., providing the C&AG with access to all information of which management is aware that is relevant to the preparation of the financial statements such as records, documentation and other matters., providing the C&AG with additional infomation and explanations needed for his audit- providing the C&AG with unrestricted access to persons within the Royal Air Force Museum and its Group from whom the auditor determines it necessary to obtain audit evidence., ensuring such internal controls are in place as deemed necessary to enable the preparation of financial statement to be free from material misstatement, whether due to fraud or error., preparing group financial statements, which give a true and fair view, in accordan with Charities Act 2011., preparing the Annual Report, which includes the Remuneration and Staff Report and Governance Statement, in accordan with HM Treasury's Government Financial Reporting Manual., and assessing the Royal Air Force Museum and ils Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Trustees and the Accounting Officer either intends to liquidate the entrty or to cease operations, or has no realistic allernative but to do so. Page 47

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 Auditor's responsibilities for the audit of the financial ststements My responsibility is to audit and express an opinion on the financial statements in accordance with section 151 of the Charities Act 2011. My objectives are to obtain reasonable assurance about whether the financial statements as whole are free from material misstatement, whether due to fraud or error, and to issue a report that includes my opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance wilh ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Extent to which the audit was considered capable of detecting non<ompliance with laws and regulations including fraud I design procedures in line with my responsibilities, outlined above, to detect material misstatements in respect of non-compliance with laws and regulations, including fraud. The exlent lo which my procedures are capable of detecting non-compliance wilh laws and regulations, including fraud is detailed below. Identifying and assessing potential risks related to non<ompliance with laws and regulations, including fraud In identifying and assessing risks of material misstatement in respect of non-compliance with laws and regulations, including fraud, l= considered the nature of the sector, control environment and operational performan including the design of the Royal Air Force Museum and its Group's accounting policies. inquired of management, Royal Air Force Museum's head of internal audit and those harged with governance, including obtaining and reviewing supporting documentation relating to the Royal Air Force Museum and its Group's policies and prOdureS on.. identifying, evaluating and complying with laws and regulations., detecting and responding to the risks of fraud., and the internal controls established to mitigate risks related to fraud or non- compliance with laws and regulations including the Royal Air Force Museum and its Group's controls relating to the Royal Air Force Museum's compliance with Ihe Charities Act 2011., inquired of management, the Royal Air Force Museum's head of internal audit and those charged with governance whether.. they were aware of any instances of non-compliance with laws and regulations., they had knowledge of any actual, suspected, or alleged fraud., discussed with the engagement team including significant component audit teams regarding how and where fraud might occur in the financial statements and any potential indicators of fraud Page 48

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ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 Consolidated Statement of Financial Activities for the year ended 31 March 2024 Unrestricted Reictsd Total Unrestricted Restricted Total Funds Fund$ Funds Funds Funds Funds 2024 2024 2024 2023 2023 2023 £000 £000 £000 £000 £000 £000 Notss Income from Donatlons and legacles Grant in aid Grants and donations 10,657 574 2,734 13,391 2,417 2,991 10,346 368 3,750 14,096 602 970 Charitable activities 162 162 142 142 other trading activities Trading income Fundraising ekents spOnsShIps 4b 4,447 4,447 4,305 4,305 74 74 120 120 Share of RAF100 Appeal gain 4b Investments 417 87 504 160 42 202 other 39 39 13 Totsl income 16,296 5,312 21,608 15,335 4,519 19,854 Expenditure on Fundraising Trading CharilatAe acliiAlies 760 3,361 14,127 760 3,361 1,110 15,237 661 3,159 14,610 695 3,159 737 15,347 4b Totsl expenditure 18,248 1,110 19,358 18,430 771 19,201 Net incomellexpenditurel 11,9521 4,202 2,250 13,0951 3,748 653 Transfers between Mnds 14 2,043 12,0431 655 16551 Othor recognid gains and losses Gainsl(lossesl on rluatIOn of fixed assets 7a 1,373 1,373 17,095 17,095 Net movement in funds 2,159 3,623 14,655 3,093 17,748 Reconciliation of funds Total fijnds brought forward al 1 April 2023 Totsl funds carrled forward at 31 March 2024 125,120 11,659 136,779 110,465 8,566 119,031 126,584 13,818 140,402 125,120 11,659 136,779 All of the Groups actiiilies are classed as continuing. All recognised gains and losses are included abo. The notes on pages &f to 74 fOj part of these financial slatemenls. Page 51

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 Consolidated and Charity Balance Sheet as at 31 March 2024 Notes Group 2024 Group Charity 2023 2024 Charity 2023 £000 £000 £000 Flxed assets Tangible assets Heritage Assets Inleslments Totsl Flxed As8ets 7a 7b 103.49) 103,616 103,490 22,199 21,627 22,199 100 125 689 125 243 125789 103,616 21,627 100 125 343 Current assets Stock Debtors Cash at bank and in hand 298 247 1,270 12,289 2,718 13,442 2,320 11,097 10 14.320 Totsl Current Assets Liabilities Creditors.. Amounts falling due within one year 11 1.520 2,230 1,517 1,941 NEf CURRENT ASSErs 14.743 11,576 14,643 11,476 Creditors.. Amounts falling due after more than one year 11 40 40 ASssILlABILITlEs 140,402 136,779 140,402 136,779 The funds ofthe charity Unrestricted funds Restricted fvnds 14 14 126.$84 125,120 126.514 13.818 11,659 13.888 125,050 11,729 140.402 136,779 140,402 136,779 The notes on pag&s 54 10 74 fom? part of these financisl statements. ApproKed by the Board of Trustees on 1 July 2024 and signed 22 July 2024 on its behalf by.. Air Chief Maal Sir Stephen Hilli&r GC8 CBE DFC Chair on behaw of Trustees Ms MApplelon Chief ExeCLrt1 Officer and Accounting (lfficer Royal Air Force Musem Page 52

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 Consolidated Cash Flow Statement for the year ended 31 March 2024 Reconciliation of net incoming resources to net cash flow from operatiro aclimties Notes 2024 £000 2023 £000 Net Incoming Reree8 2,250 653 Interest recei¥8ble Depreciation of tangible assets IPro)Ityloss on dispos81 of assets Donated Assets Ilncreasel I decrease in stocks Ilncreasel I decrease in debtors (Decrease) l increase in creditors {5041 3,548 124 12021 3,635 398 1861 121 16541 460 7a 1511 {3751 {3851 11 Net cash provided by operating activities 4.607 4,202 Cash flows from investing activities Bank interest reCeId Purchase of tangible fixed assets 504 13,0801 202 12,2801 7a Net cash used in investing activities 2,576 2,078 Change in cash and cash equivalents Cash and cash eqUilentS al 1 April 2023 10,165 Cash and cath equivalentsat 31 March 2024 14,320 12,289 The notes on pages 54 to T4 fom7 part of these financial statements. Page 53

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 Notes to the Financial Statements for the year ended 31 March 2024 1. ACCOUNTING POLICIES Basis of Accounting The financial slalements have been prepared in accordance with applicable accounting standards, under the historical cost convention as modified by the revaluation of fixed assets. The financial statements comply with the Statement of Recommended Practice.. Accounting and Reporting by Charities SORP 2019 (FRS 102} and wilh the Government Financial Reporting Manual. Basis of consolidation Consolidated financial statements have been prepared for Ihe year ended 31 March 2024 in respect of the charity and its wholly owned subsidiaries, Royal Air Force Museum Enterprises Ltd and The Royal Air Force Museum Investments Limited, using the acquisition method of accounting. Intra group transactions and profits are eliminated fully on consolidation. The Royal Air Force Museum Investments Limited was formed to hold the real property assets of the charity on behalf of the Trustees. In March 2005, the Cosford and Stafford leasehold property was transferred lo this company from the charity, followed by the London (Hendonl freehold property in January 2008. However, while the legal ownership remains with the company, in substance the RAF Museum retains the risks and rewards associated with these assets. In accordance with FRS 102 the RAF Museum has recognised these assets in the balance sheet. Going concern The Trustees have presented the accounts on a going concern basis. This assumes that the Museum is able to meet its liabilities as they fall due for the foreseeable future and that current and future funding will be adequate for the charity's needs. We have considered a period of twelve months from the date of approval of the financial statements in accordance with accounting conventions. In coming to their conclusion, the Trustees have considered monthly forecast levels of income and expenditure and underlying assumptions. The over-riding assumption is that the funding from the MOD continues at a similar level for the foreseeable future having carefully considered the forecasts and assumptions the Trustees are content to present the accounts on this basis. Income Grant in Aid is recognised in the year to which it relates. Grants and donations are recognised On the Museum can demonstrate that SORP 2019 recognition criteria of measurement, entitlement and probability have been met. Donations in the fomi of legacies are recognised when it is probable that the legacy will be received and its value can be measured reliably. Earned income is accounted for as rt is receivable. Donations in kind are recognised at their fair value, with an equivalent charge made to resources expended. Sponsorships are recognised in line with the sponsorship period. Gains and losses on investments are recognised in the period in which they arise. Income from commercial activities, including Gift Aid from the trading company, is included in the year in which the related goods or services are provided. Page 54

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 Expenditure Resources expended are included in the slatement of financial activities on an accruals basis, inclusive of any irrecoverable VAT. Expendilure is classified in the Statement of Financial Activities under the principal categories of raising funds and charitable activities. Resources expended comprise direct expenditure including direct staff costs attributable lo the activity. Vvhere costs cannot be directly attribLrted, they are allocated to activities according to the method described in note 5. Termination payments Termination payments are payable when employment is teminated before the normal retirement date or end of employment contract. In line with the FReM, they are recognised when the employment ends. Fund accounting Unrestricted funds (including designated funds) are donations or other incoming resources received or generated for the charity's general purposes. The general fund comprises the accumulated surpluses of unrestricted incoming resources, which are available for use in furtherance of the general objectives of the charity. The fixed asset fund represents the value of the charity's fixed assets. The revaluation reserve represents the increase in value of the charity's assets through either indexation of professional revaluation. Designated funds are a particular fom of unrestricted funds consisting of amounts which have been allocated or designated for specific purposes by the Trustees. The use of designated funds remains at the discretion of the Trustees. Restricted funds are to be used for specified purposes as laid down by the donor. Expenditure which meets these criteria is identified to the fund, together with a fair allocation of overhead osts. Tangible fixed assets The charity s tangible fixed assets are capitalised at cost on acquisition and revalued annually using the most appropriate indi$ calculated by Defence Economics and Valuation Offi Agency for the relevant class of asset. Fixed assets with a cost of less than £2,500 are not capitalised. Any gains or losses on revaluation are reported as unrealised until an asset is disposed. The freehold and leasehold properties comprising the RAF Museum estate are independently valued every five years. The most recent such valuation was undertaken as at 31 March 2023. Further detail is provided in Note 7a. On 1 April 2016 the Museum took ownership of assets held by Royal Air Force Museum Enterprises Ltd. The Museum levies a charge on RAFMEL for the use of these assets. Depreciation is provided straight line at rates calculated to write off the value of each asset over its expected useful life, as follows.. Page 55

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 Freehold buildings 5 to 75 years (structure, fit-out, and mechanical and electrical services) Leasehold property over the lease term Permanenl exhibitions 5 to 10 years Fixtures, filtings and equipment 3 to 5 years Plant and machinery 5 years Simulators 15 years Motor vehicles 4 years Assets in the course of construction are not depreciated or revalued until brought into use. Impaim7ent The RAF Museum assesses whether there is any indication of impaiment for all fixed assets at the balance sheet date. A fixed asset is considered to be impaired if the recoverable amount of the asset has fallen below its carrying amount on the balance sheet, as a result of damage, deterioration poor performan or external factors affecting its value. If any indication of impairment exists, the Museum shall estimate the recoverable amount of the asset, determined as the higher of its fair value less costs to sell the asset and its value in use. The method of estimation used shall be that deemed most suitable for the type of asset. Vvhere there is objective evidence that an impairrnent loss exists, an impairment charge will be made to the Revaluation Reserve to reduce the carrying value ofthe asset to the estimated recoverable amount. Where there are no historical revaluations in a revaluation reserve, impairment losses are charged through the Statement of Financial Activities. Exhibition costs Long term exhibition equipment is capitalised as a fixed asset under fixtures and fittings. Temporary exhibition costs are written off as resources expended in the year they are incurred. Heritage assets The Museum has approved policies for Collections Development and our management of Heritage Assets. Our key collections policies and further information on the acquisition, safeguarding and disposal of Heritage Assets can be found on the RAF Museum Website, following the link.. htt s'.Ilw.r3fmuSeUm.or .uklresearGhldefaultla uisitions-and4is osalsl Any other collections-related policies can be made available on request. The Museum has been consistently reviewing and recording all the heritage assets on its database for several years now and the collection can be divided between the accessioned collection (objects that have been formally acquired and accepted into the Permanent Collection), and the un-accessioned collection Ilong-term deposited objects which have yet to be assigned a status, catalogued, or passed through the Collections Review process). Un- accessioned objects, the majority of which are aircraft technical drawings and library objects, represent two thirds ofthe accumulated objects held by the Museum. Heritage assets valued over the capitalisation threshold which have been accessioned into the collection on or after 1 April 2001 have been capitalised but not revalued or depreciated. Heritage assets are accounted for as a distinct category of fixed assel with indefinite life and Page 56

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 are therefore not depreciated. If available, valuation is based on acquisition costs increased by restoration costs (if applicable). The Museum's response to the introduction of FRS 30 effective 1 April 2010 was to deploy internal resources to the task of valuation in respect of those assets acquired before 1 April 2001, and which represent a materially significant part of the aCSSiOned collection. Given the diverse nature of the collection, the unique nature of some items and also taking into account changing market conditions, the resulting valuations represent indicative estimates. The valuations of the most significant items acquired pre-2001 were added to the total value of heritage assets as at 31 March 2011. The heritage assets will not be re-valued in future periods., however, impairment reviews will be carried OLrt by the Museum on a needs basis if any changes have been noted by our Collections team during their assessments. For donated assets, in most cases valuations are based on internal estimates determined by the relevant curator's experience and judgement, as an accurate figure is very difficult lo establish. In some cases (e.g. a significant painting), a dealer may be sometimes consulted for advice. Investments Investments held as fixed assets are staled at cost less provision for permanent diminution in value. Those held as current assets are stated at their market value. Term deposits of less than one year are classified as investments within current assets. Investments in joint ventures are accounted for using the equity method, with the carrying amount measured as the Museum's initial investment plus its share of the joint venture's profit or loss. Dividends are recognised on the Statement of Financial Activities when received. The distribution received from the Museum's partnership in the RAF100 joint venture has been accounted for using the equity method in accordance with FRS 102. Leased assets and obligations Assets held under finance leases, where the lease terms give rights approximating to ownership, are capitalised with an equivalent liability recognised under creditors due within one and after one year as appropriate. Rentals payable under operating leases are charged to resources expended as they are incurred. stock Stock is valued at the lower of cost and net realisable value. Specific provision is made for obsolete and slow-moving items. Financial instmments The Museum's financial assets and liabilities consist of cash and cash equivalents, short lemi investments, trade debtors, trade creditors and accrued expenses. The fair value of these items approximates their carrying value due to their short-term value. Unless otherwise noled, the Museum is not exposed to significant interest, foreign exchange or credit nsks arising from these instruments. Page 57

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24 Pensions From May 2014 the Museum has automatically enrolled all employees into a National Employment Savings Trust {NESTI pension scheme unless the employees choose to opt out. The NEST pension scheme is a defined contribution pension scheme Ihat was created as part of the government's workplace pensions reform under the Pensions Act 2008. The assets of the scheme are held separately from those of the Museum and the Museum is unable to identify its share of the liability. Employer's contributions are charged to the Statement of Financial Activities as they occur. Pension benefits for a small number of longer serving staff are provided through the Civil Service pension arrangements, which provide benefits based on final pensionable pay. Employer's contributions are charged to the Statement of Financial Activities as they occur. The assets of the scheme are held separately from those of the chanty and the Museum is unable to identify its share of the underlying assets and liabilities. A full actuarial valuation is carried out periodically. Details can be found in the resource accounts for these schemes, which are published and laid before the House of Commons. Page 58

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24

2. TAXATION

All of the charity's income is applied for charitable purposes and therefore the charity is exempt from Corporation Tax. The Corporation Tax liability of the trading subsidiary for the year ended 31 March 2024 was £nil (2023: £nil).

3. GRANTS AND DONATIONS

	Unrestricted	Restricted		Unrestricted	Restricted
	Funds	Funds Total Funds		Funds	Funds Total Funds
	2024	2024	2024	2023	2023	2023
	£000	£000	£000	£000	£000	£000
Donated Heritage Assets	-	-	-	-	86	86
Bomber Command Association	-		-	-	80	80
STAAR Programme	-	122	122	-	136	136
RAFMAF	-	78	78	-	244	244
Legacies	251	-	251	73	-	73
John Mars donation	-	1,144	1,144	-	-	-
National Heritage Memorial Fund		470	470
National Lottery Heritage Fund	-	396	396	-	-	-
Swire Foundation	-	25	25	-	-	-
Other - Individual Donations	323	182	505	295	56	351
	574	2,417	2,991	368	602	970

4a. INVESTMENT IN SUBSIDIARY UNDERTAKINGS

The investment of £100,000 (2023: £100,000),represents the charity's interest in 100% of the issued share capital and retained loss of Royal Air Force Museum Enterprises Limited (company number 1511481) which is incorporated in England and Wales and operates souvenir shops, car parking and other trading activities at Hendon and Cosford. The company's aggregate capital and reserves were as follows:

Royal Air Force Museum Enterprises Limited

The assets and liabilities of the subsidiary were: Current assets Creditors: amounts falling due within one year At 1 April 2023 Profit/(Loss) retained in subsidiary At 31 March 2024	2024 2023 £000 £000 1,487 2,068 (1,387) (1,968) 100 100 2024 2023 £000 £000 100 100 - 100 100

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ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24

A summary of the Company's trading results is shown overleaf. Audited accounts will be filed with the Registrar of Companies.

The remaining £2 represents the charity's interest on 100% of the issued share capital of The Royal Air Force Investments Limited (company number 4026995), which is incorporated in England and Wales and holds the real property assets of the charity for administrative purposes.

The Directors of RAF Museum Enterprises Limited, having considered monthly forecast levels of income and expenditure and the underlying assumptions, have assessed that the subsidiary is a going concern and the Trustees are content, therefore, that the investment in the subsidiary retains its value.

4b. INCOME FROM SUBSIDIARY UNDERTAKINGS

Royal Air Force Museum Enterprises Limited

Turnover and other income Cost of sales, administrative expenses and taxation. Interest receivable Net Profit/(Loss) Gift Aid to RAF Museum Surplus/(Deficit) in subsidiary	2024 2023 £000 £000 4,636 5,057 (3,468) (4,337) 1,168 720 10 4 1,178 724 (1,178) (724) -

The turnover and cost of sales include £108k (2023: £752k) received from the Musem and £27k (2023: £1,178k) paid to the Museum under exhibition production agreements . These amounts have been eliminated in the consolidated results.

5. Resources expended

As required by the charity SORP, expenditure is analysed between that directly attributable to activities and support costs. These support costs are allocated to activities based on the criteria outlined below.

Fundraising Trading Charitable activities Other	Direct Support Total costs costs Depreciation 2024 £000 £000 £000 £000 629 129 2 760 3,361 - - 3,361 9,230 3,110 2,897 15,237 - - - - 13,220 3,239 2,899 19,358

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ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24

----- Start of picture text -----
Charitable Total Allocation
Fundraising Trading Activities Other 2024 method
£000 £000 £000 £000 £000
Finance 19 - 261 - 280 Expenditure
IT 40 - 794 - 834 Number of staff
HR 18 - 353 - 371 Number of staff
Estates - - 257 - 257 Floor space
Administration 52 - 706 - 758 Expenditure
Governance - - 739 - 739 Expenditure
129 - 3,110 - 3,239
----- End of picture text -----

The National Audit Office audit fee of £41,000 (2023: £39,850) is included within governance costs. Charitable activites costs includes a one-off rebate of £845,000 further to a successsful challenge to the 2017 business rates valuation for the period 2017 to 2023

Prior year analysis

Fundraising		Direct Support costs costs £000 £000 582 110	Total Depreciation 2023 £000 £000 3 695
Trading		3,159 -	- 3,159
Charitable activities		8,879 3,027	3,441 15,347
		12,620 3,137	3,444 19,201
Finance	Charitable Fundraising Trading Activities £000 £000 £000 15 - 232	Total Other 2023 £000 £000 - 247	Allocation method Expenditure
IT	39 - 766	- 805	Number of staff
HR	19 - 368	- 387	Number of staff
Estates	- - 226	- 226	Floor space
Administration	37 - 583	- 620	Expenditure
Governance	- - 852	- 852	Expenditure
	110 - 3,027	- 3,137

6. STAFF COSTS AND NUMBERS

Salaries and wages Temporary agency staff Social security costs Pension costs	2024 2023 £000 £000 5,932 5,212 - 12 600 566 362 328 6,894 6,118

The above costs exclude the trading subsidiary.

The average number of employees in the Museum during the year was 203 (2023: 202). FTE equivalent was 181 (2023: 180).

Employees whose emoluments amounted to over £60,000.

	2024	2023
£60,001 - £80,000	4	-
£80,001 - £90,000	-	3
£90,001 - £100,000	3	1
£100,001 - £110,000	-	-
£110,001 - £120,000	1	-

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ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24

7a. TANGIBLE FIXED ASSETS - GROUP AND CHARITY

At 1 April 2023 Additions Transfers Disposals Revaluations At 31 March 2024 Depreciation At 1 April 2023 Charged in the year Disposals Revaluations At 31 March 2024 Net Book Value At 31 March 2024 At 1 April 2023	Freehold property Leasehold Property Permanent Exhibitions Fixtures, Fittings & Equipment Plant, Machinery & Vehicles Assets under Construction Heritage Assets Total £000 £000 £000 £000 £000 £000 £000 £000 81,676 16,358 6,367 3,398 773 1,556 21,627 131,755 70 29 468 364 - 1,118 696 2,745 1812 0 862 - - (2,674) - - - - - - - - (124) (124) 700 474 298 35 16 - - 1,523
	84,258 16,861 7,995 3,797 789 - 22,199 135,899
	- - 3,252 2,646 614 - - 6,512 1,551 812 753 403 29 - - 3,548 - - - - - - - - - - 135 11 4 - - 150
	1,551 812 4,140 3,060 647 - - 10,210

	82,707 16,049 3,855 737 142 - 22,199 125,689

	81,676 16,358 3,115 752 159 1,556 21,627 125,243

7b. HERITAGE ASSETS

The number of Heritage Assets which the Museum acquires through donations means that the total book value of Heritage Assets is a mixture of cost (for purchased exhibits) and valuation at the point of donation (for donated exhibits), and includes a historic valuation of a materially significant part of the collection. Heritage assets which have been accessioned into the collection on or after 1 April 2001 are not revalued, as such information cannot be obtained at a cost commensurate with the benefit to the users of the accounts and to the Museum. At 31 March 2024 the book value comprised:

Heritage Assets recorded at cost Heritage Assets recorded at valuation Total book value of Heritage Assets A summary of the nature and scope of the collection is as follows Aircraft and Aircraft Parts Medals and Commemorative items Artwork Archives Vehicles and Marine Craft Models Other Total	2024 2023 £000 £000 3,485 2,789 18,714 18,838
	22,199 21,627
	2024 2023 £000 £000 17,354 17,478 2,341 1,645 1,067 1,067 889 889 319 319 84 84 145 145
	22,199 21,627

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ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24

Summary of Heritage Asset Acquisitions and Disposals over the last five years

Book Value Brought Forward
Add Acquisitions
Purchased at cost
Donated at valuation
Total Acquisitions
Revaluations
Disposals
Book Value Carried Forward
8.
STOCK
Goods for resale
9.
DEBTORS
Trade debtors
Amounts due from subsidiary undertaking
Other debtors
Prepayments and accrued income
Gift Aid from the subsidiary
10. CASH AT BANK AND IN HAND
Commercial bank accounts
Cash in hand

31.03.20
31.03.21
31.03.22
31.03.23
31.03.24
£000
£000
£000
£000
£000
21,625
21,785
21,790
21,846
21,627
160
-
16
90
696
-
5
40
86
160
5
56
176
696
-
-
-
-
-
-
-
-
(395)
(124)
21,785
21,790
21,846
21,627
22,199
2024
2023
2024
2023
£000
£000
£000
£000
298
247
-
-
2024
2023
2024
2023
£000
£000
£000
£000
82
72
28
26
-
-
-
930
1,173
892
1,166
380
390
306
321
235
-
1,203
749
1,645
1,270
2,718
2,320
2024
2023
2024
2023
£000
£000
£000
£000
14,309
12,277
13,440
11,094
11
12
2
3
14,320
12,289
13,442
11,097
Charity
Charity
Charity
Group
Group
Group

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ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24

11. CREDITORS

11. CREDITORS
	Group		Charity
	2024	2023	2024	2023
	£000	£000	£000	£000
Amounts falling due within one year
Trade creditors	642	1,180	562	1,059
Taxation and social security	244	143	141	130
Amounts due to subsidiary undertaking	-	-	273	-
Other creditors	73	33	67	33
Accruals and deferred income	561	874	474	719
	1,520	2,230	1,517	1,941
Amounts falling after more than one year Accruals and deferred income	30	40	30	40
	30	40	30	40
12. RECONCILIATION OF GROUP NET CASH FLOW TO Increase/(decrease) in cash in period Cash inflow from investment dividends	MOVEMENT IN GROUP NET		CASH FUNDS 2024 £000 2,031 -	2023 £000 2,124 -
Change in net funds resulting from cash flow			2,031	2,124
Change in market value of liquid resources (Realised Profit) Net funds at 1 April 2023			- 12,289	- 10,165
Net funds at 31 March 2024			14,320	12,289
13. ANALYSIS OF GROUP NET FUNDS

Cash at bank and in hand (See note 11)	1 April 2023 Cashflow 31 March 2024 £000 £000 £000 12,289 2,031 14,320 12,289 2,031 14,320

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ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24

14. STATEMENT OF GROUP FUNDS

Analysis of group net assets between funds

	Unrestricted	Restricted	Total funds	Unrestricted	Restricted	Total funds
	funds	funds	2024	funds	funds	2023
	£000	£000	£000	£000	£000	£000
Tangible fixed assets	117,228	8,461	125,689	117,478	7,765	125,243
Investments in joint ventures	-	-	-	-	-	-
Cash at bank and in hand	8,963	5,357	14,320	8,395	3,894	12,289
Other net current assets	393	30	423	(753)	40	(713)
Net non current assets	-	(30)	(30)	-	(40)	(40)
Total assets less liabilities	126,584	13,818	140,402	125,120	11,659	136,779

Net assets	126,584	13,818	140,402	125,120	11,659	136,779
Analysis of funds	2023	Income	Expenditure	Revaluation	Transfers	2024
	£000	£000	£000	£000	£000	£000
Restricted funds
Fixed assets	7,765	-	-	-	696	8,461
RAF Centenary Programme	992	96	(19)	-	(9)	1,060
RAF Museum Midlands	641	1,681	(758)	-	-	1,564
Watchtower	64	1	(65)	-	-	-
STAAR	49	126	(142)	-	-	33
Hidden Heroes	95	2	(10)	-	(32)	55
RAFMAF Learning Fund	55	1	-	-	-	56
RAF Museum Resilience Rese	-	2,000	-	-	-	2,000
Restricted Grant in Aid	1,911	777	(116)	-	(2,002)	570
Other	87	628	-	-	(696)	19
Total Restricted Funds	11,659	5,312	(1,110)	-	(2,043)	13,818
	2023	Income	Expenditure	Revaluation	Transfers	2024
	£000	£000	£000	£000	£000	£000
Unrestricted funds
Fixed assets	52,861	-	(3,667)	-	2,043	51,237
Revaluation reserve	64,617	-	-	1,373	-	65,990
General	2,114	16,296	(14,513)	-	(1,631)	2,266
Designated funds
Strategy 2030 Fund	4	-	(68)	-	1,631	1,567
RAF Museum Midlands	4,424	-	-	-	-	4,424
RAF Museum Midlands Match	1,100	-	-	-	-	1,100
Total Unrestricted Funds	125,120	16,296	(18,248)	1,373	2,043	126,584

Total Funds	136,779	21,608	(19,358)	1,373	0	140,402

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ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24

Restricted funds

Restricted income funds consist of a number of funds where the donors have specified the uses to which they may be put.

Fixed Assets - a significant proportion of these funds represents the capitalised value of restricted and inalienable fixed assets. This also includes the restricted element of the heritage assets.

RAF Centenary Programme - various grants and donations towards delivery of activities and capital works designed to connect people to the RAF story, and reimagine the London and Midlands sites.

RAF Museum Midlands - a ll donations and grants received to support the programme of activities and capital works at the Midlands site have been grouped together as a single fund supporting the Inspiring Everyone: RAF Museum Midlands Development Programme. This includes the following funds disclosed separately in previous years based on funding source rather than programme of activity - Cosford Air Show, Cosford Large Model Aircraft Association and Cosford Sprinklers funds.

Watchtower - funds from St George Property Developers to cover the running costs of the Grahame White Factory (London Hangar 2).

STAAR - a grant from Northrup Grumman to fund the Summer Time Advanced Aeronautics Residential (STAAR) STEM programme.

Hidden Heroes - funds received from the Chelsea Foundation (prior to the Ukraine crisis; Trustees agreed to decline any further donations) to highlight the diversity of RAF stories.

RAFMAF Learning Fund - grants from RAF Museum American Foundation to support Access and Learning activities.

Restricted Resilence Reserve Fund - to protect the RAF Museum from a future financial shock (which could include, but is not limited to, unavoidable closure, irreparable infrastructure failure, major cyber-attack) and provide funds for critical ‘invest to save projects’ that further support the Museum’s resilience.

Restricted Grant in Aid - grants from the Ministry of Defence to fund specific capital work and recovery from the Covid pandemic.

Other Restricted Funds - movement in year relates to the Arthur Scarf VC donation campaign. The Museum also has several small restricted funds for use on specific short-term projects most of which complete within the space of twelve months.

Unrestricted funds

Fixed Asset s - a significant proportion of these funds represents the capitalised value of inalienable fixed assets, including unrestricted heritage assets.

General Funds - these are funds not associated with fixed assets that are expendable at the discretion of Trustees.

Unrestricted designated funds

These are funds that Trustees have set aside for a specific purpose.

Strategy 2030 Fund - supports delivery of the Museum’s key strategic priorities in the future including planning for future capital development at both sites; ensuring the sustainability of the estate; focus on the recording of contemporary stories of RAF men and women; and development of the Museum's collection through new acquisitions.

RAF Museum Midlands Fund and the RAF Museum Midlands Match Fund - supports the Inspiring Everyone: Midlands Development Programme. This programme of engagement activities and capital investment will continue our focus on immersive RAF storytelling and support our ambition to encourage reflection and debate across our spaces and programmes, including delivery of a new Collections Hub, Exhibition and Learning Centre.

Transfers

Generally, transfers between funds represent the capitalisation of fixed assets.

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ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24

15. COMMITMENTS

Operating lease commitments due: Plant and machinery: within one year in the second to fifth years Land and Buildings: within one year in the second to fifth years after five years	2024 2023 £000 £000 10 32 5 21 530 530 1,565 1,750 3,452 3,797 5,562 6,130 Group or charity

The Museum paid £563k under operating lease arrangements in the year to 31 March 2024 (2023: £562k).

Capital Commitments

As at 31 March 2024, the Museum had a £90k final payment outstanding related to the £1.8M glazing contract at the London site (2023 £1.25M). This project was fully funded by restricted Grant in Aid.

16. RELATED PARTIES

Related parties with which the Museum had transactions during the year or balances at the year end were as follows:

Royal Air Force Museum Enterprises Ltd

The relationship of the Museum to the company is disclosed in Note 4. The balance of £0 due from the company at the year end (2023: £930k) in relation to production agreements and overhead charges and the balance of £1,203k Gift Aid payable (2023: £749k) are disclosed in Note 9. The balance of £273k due to the company at the year end (2023:£0) is disclosed in Note 12.

The Royal Air Force Museum Investments Limited

The company was formed to hold, on behalf of the Trustees, the real property assets of the charity and thus minimise the administrative burden whenever a change in Trustees takes place. The leasehold property was transferred to this company from the charity in March 2005 and the freehold property in January 2008.

Ministry of Defence

The Royal Air Force Museum is a Non-Departmental Public Body, sponsored by the Ministry of Defence (the MOD). The MOD is regarded as the related party. Grant in Aid funding from the MOD is separately disclosed in the Statement of Financial Activities.

The Trustees’ involvement with RAF Museum Enterprises Ltd and RAF Museum Investments Ltd is disclosed in the Governance statement on page 33.

17. CONTINGENT LIABILITIES

There were no contingent liabilities as at 31 March 2024 (2023: Nil).

18. POST BALANCE SHEET EVENTS

The annual report and financial statements were authorised for issue by the Accounting Officer on the date that the audit certificate was signed by the Comptroller and Auditor General.

There were no other post balance sheet events.

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ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24

19. SINGLE ENTITY STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted Restricted
Total
Funds
Funds
Funds
2024
2024
2024
£000
£000
£000
Income from
Donations and legacies
Grant in aid
10,657
2,734
13,391
Grants and donations
574
2,417
2,991
Charitable activities
162
-
162
Other trading activities
Fundraising events
-
-
-
Sponsorships
-
74
74
Share of RAF100 Appeal gain
-
-
-
Investments
407
87
494
Other
1,782
-
1,782
Total income
13,582
5,312
18,894
Expenditure on
Fundraising
771
-
771
Charitable activities
14,763
1,110
15,873
Other
-
-
-
Total expenditure
15,534
1,110
16,644
Net gains/(losses) on
investments
-
-
-
Net income/(expenditure)
(1,952)
4,202
2,250
Transfers between funds
2,043
(2,043)
-
Other recognised gains and losses
Gains/(losses) on revaluation of
fixed assets
1,373
-
1,373
Net movement in funds
1,464
2,159
3,623
Reconciliation of funds
Total funds brought forward at
1 April 2023
125,050
11,729
136,779
Total funds carried forward at
31 March 2024
126,514
13,888
140,402

Unrestricted
Restricted
Total
Funds
Funds
Funds
2023
2023
2023
£000
£000
£000
10,346
3,750
14,096
368
602
970
142
-
142
5
-
5
-
120
120
-
1
1
160
42
202
1,849
4
1,853
12,870
4,519
17,389
672
34
706
15,293
737
16,030
-
-
-
15,965
771
16,736
-
-
-
(3,095)
3,748
653
655
(655)
-
17,095
-
17,095
14,655
3,093
17,748
110,395
8,636
119,031
125,050
11,729
136,779

All of the Museum's activities are classed as continuing. All recognised gains and losses are included above.

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ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24

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7a. TANGIBLE FIXED ASSETS - GROUP AND CHARITY

7b. HERITAGE ASSETS

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24

Summary of Heritage Asset Acquisitions and Disposals over the last five years

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11. CREDITORS

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Analysis of group net assets between funds

ROYAL AIR FORCE MUSEUM ACCOUNT 2023-24

Restricted funds

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15. COMMITMENTS

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Ministry of Defence

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