OROYAL
AIRFORCES
Association
The charitythat suppoits the RAF famlly
THE ROYAL AIR FORCES ASSOCIATION
REPORT AND
FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2020
tr¢hY.H•trtrAaJostylh•Qu
H*51ETedChanty226636IEr4and&Wa￿S).SCC37613￿5CQtthnd1.

THE ROYALAIRFoR￿sAS5ocIATION
REPORT AND FINANCIALSTATEMENTS
YEARENDED31 DECEMBER 2020
Cont&)ts
Pages
Reference and administrative details
Trustees, report
4-24
Independent auditors, report
25-28
Group statement of financial activities
29-30
Association statement of financial actlvlties
31-32
Con501idated and Association balance sheets
33-34
Consolidated and Association Statements of cashflows
35
Notes to the financial statements
36-67

THEROYALAIR FOR￿sASs0clATION
REFERENCE ANDADMINISTRATIVE DETAILS
YEARENDED31 DECEMBER2020
REGISTERED CHARITY NUMBERS
2266861Englandand WaIe51,SC03767315co￿and)
PRINCIPALOFFICE
Atlas House.41 Wembley Road, Le1￿$ter, LE3 IUT
PATRON
Her Maje5tyThe Queen
LIFE VICE.PRESIEENTS
Marshal of the Royal*ir ForceThe Lord Stirrup KG GCBAFC FR4eS
FCMI
Air Chief Marshal Sirstephen Dalton KC8ADCBSc FRAeSCCMI
Air Chief Marshal Sirjoseph GilbertKCB CBE LLD Ihcl
Alr Chief Marshal Sir Glenn Torpy GCB CBE DSO ADC Bsc IEng)
FRAeS
Air Chief Marshal SirAndrew PulfordGCB CBE ADC
Air Chief Marshal SirStephenHillier GCB CBE DFC ADC MA
Air Marshal Sirjohn Ken*all KCBCBE DL (Died June20211
Air Marshal Sir DustyMillerKBE
Air Marshal P O SturleyCB MBE Bsc FRAeS
Air Vice-marshal P Liddel CB BSC CErbg F1￿FRAes
Air Vice-marshal N Bairsto CB MBE
Air CommodoreA H Vaughan OBE BA FIMgt
TRU.STEE MEMBERSOFTHE COUNCIL
President
Air Marshal Sir Baz North KCBOBE MA FRAeS
Chairman
Air Vice-Mar5halJ Cliffe CB OBE
Vice Charrman
Dr B Pattison OBE
HonoraryTreasurer
Mr P Tagg
Elerted Member5
Dr B Pattison OBE
Mr MJ Blackman
Squadron Leader DGibson RAF
MrCHGossMA
Mr l L McEnnis DipNEBSM AlnstAM (Dipl
MrAPRees
Mrs B Oennettstsnnard
Mr P Ramrayka MBA CIHM FIHM FIHEEM FRSP

THE ROYALAIRFORCES ASSOCIATION
REFERENCEANDADMINISTRATIVE DETAIiS (CONTINUED)
YEARENDED31 DECEM8ER2020
Area Representatfves
Mr F C Barrett M8EISouth Eastarhd Eastern)
Mr D Chappell (Northern)
Mrs M Addison (Wales, Midlan(b and South Westeml
Mrss Kidston (Scotland and Northem Ireland)
Air CornrnodoreA Neal AFC FRAeS (European)
Members appointed bythe Royal Air
Force
AirCommodoreGAOpieMDAMABScFCIPD RAF
WingCornmanderAMorrisMBERAF
Warrantoffl￿rm Rees-martin
RAF Benevolent FurKI
Representative
Air Commodore R Atherton
Appolnted Member
Ms F Barber
Ms S Barber
Mrs P 8earblock
Air Vice-marshal M Neal OBE CEng Fl
SENIORMANAGEMENTTEAM
SettetaryGeneral
Mr N Bvntin8OBE CDir FIOD MCMI
Dirertor of Welfare and Policy
Mr R O'connor MA
Dirèttor of Brartchand Mèmbershlp
Operatlons
Group Captain D Rowlands MAChartered MCIPD
Director of Marketlng, Fundraislngand
Trading
Ms R Huxford MlnstF
Chlef Finance Offlcer
MrA Wilkinson-strorpe FCCAlurhtil 31 March 20211
Mrs K Parkin IP 8Sc IHonslACMACGMAMCIPPACIPD (from 12
April 20211
Chief People OffI￿r
MrsA Hunter FCIPD (until 31 De￿mber 20201
Chief Information Officer
Mr P Sherwin Bk IHonslMBCS
Groupcompanysecretary
Mrsv Hall FCG

THE ROYALAIRFORCESASSOCIATION
REFERENCEANDADMINISTRATIVE DETAILS ICONTINUEDI
YEARENDED31 DECEMBER2020
PROFESSIONAL ADVISORS
Audltors
RSM UK Audit LLP, St Philips Point. TempleFlOW, Bimlrgham B25AF
Bankers
Lloyds Bank plc, Law Courts Branch, 222 Strand, LondonWC2R I
Investmentmanagers
Rathbones Investment Management Limited, I Curzon Stree¢
London, Wll SF8
Rothschild & Co, Newcourt, Stswithin's Lane.
London EC4N SAL
Solicitors
Freeths LLP, Onecolttsnsquare, Le1￿$ter, LEI IQH
Bates Wells & Braithwaite London LLP. 10 Queen Street Pl￿,
London EC4R IBE

YHE ROYALAIR FORCESASSOCIATION
TRUSTEES, REPORT
YEARENDED31 DECEMBER2020
The Trustee5 of The Royal Air Force5 A5sociationlthe Association) pre5entthi5 reportand the financial statementsof
the AssoclatSon for the year ended 31 December 2020. The finanaal statements have been prepared based on the
accountirbg policie5 Setout in note 2 ttsthe financial statements and comply with the Royal Charter.
Mission
Our purpose and reason for existence 15 ertshrined ￿thin the charitable objertive set out at Article two of our Roya
Charter, which state5.. Yhe object for which the Association is established is to promote, thriyjgh the comrackship
engendered by itSMem￿r5, thewelfareby charitablemearts of all serving andformèrmembers of OurAirForces, tsir
SPOU5e5and dependants,togetheTWlth the widows and widowers and depermlants of those who diedwhilstser*ww
subseqtsently."
Activities
We are one of the oldestmllltary charlties, with a 90-yearhistoryof supporttothe RAF communitv.
We offer suptortto a communityof onè milllon people.
We have athriving network of 70,OC(ImembeTsacr055 90 countries in 300branches.
In 2020
We supported morethan 80,0(K) individuals to remain active. thriving and valued mernber5 of their Icca
communitie5.
Our dedicated helpline looked after over45.0(K) erquiries
We reducedlonelirEssand i501ation by makingover 109.OQ)frlendshipand welfarÈtheck¢allstoover35XKI)
member50fthe RAFfamily.
Over 2.OOObeneficiariesreceived regular weekly(a115 Supported by over 8(Kjnewvoluntee￿.
6,243 beneficiarie5weresUPPOrtedbyOpCONNECT.our emergencyre5wnsetoCOVID-19.
We had a f5eld force of 1,100 highlytrained welfare volunteers, who supported Over4,0(￿ welfarecases of
which 2,387re￿1Ved oneto one support. 89%feklistened toand thattheir need5were understood and ful
met.
Over 52%of RAF communltywelfarefinancial caseswere managed by ourwelfarevolunteers.
We sourced over £4.8min almonised funds for ourbenefiuarie&
Oursupport,tralningand advice hub5 empowered over 4.540pecylebyhelpingthemto intfeasethewowrb
resilien￿ orsupportthemental wellbeingof other
Ourfour ret1￿MentaC(0MMOdat1onctsmp1exeS in the UK allowed 150peopleto retsln thelrIndep￿de￿e
with a helping hand availableon-&te should they needit.
More than 400 children received high-quality childcare in a welcomng and safe environment at our BAFA
Kidz nurseries on UK military base5.

THE ROYAL AIR FORCESASSOCIATII]N
TRUSTEES. REPORTICONTINUEDI
YEARENDED31 DECEMBER2020
Actlv5tieslcont5nuedl
We relieved key elements of everyday life which can ￿uSe pressure, such as helping our serving RAF
community to keep Stro￿ rektionthipswiththeir loved 0￿$.
3A57 peoplevisitedour Navi8atin8Dementiaonline hub.
531 membets of theRAF communltytookpart in ouronline'FindI￿ itToughY rnentsl well￿￿)gprograTr￿.
More than 840 beneficiaries received our suppgrt in applyin8 forthe Armed Forces Compensation scheme,
5ecurin6 over £427k inawards.
We se¢uredover£lAm for Branthclubs fr(¥v the Armed For￿5 Covenant Fund.
We supported Branchclubstoobtainover £l.Om in Government Funding.
Ourfrèe Wi-Fiwas used over 150,(#Xltimes.
Our innovative online entertsinmentprogrammewa5 viewed morèthan 1.5mllllon tImesa￿o5$1he wor*1,
keeping peopleconnertedwith the RAF past and present.
Impart of COVID-19and our response
The World Health Organisation declared COVID-19 a global pandemic on 11 March 2020, followin8which the UK
Governrnentmade a 5erie5 of recommendatiorLsculmin3tirEin a prolonged nationwide lockdcwn commencrgrn 23
March 2020. A resurgence in cases in the UK duri￿ the Autumn and Winter of 2020 resulted in the IntrcKluction cl
further lockdowns andreStr￿t1C￿s whichareonly now beginningto beeased. whi￿ vaccines have been developed axl
mas5-vaccination programme is underway, ccnsideralle uncertainty rernains. Durlng 2C120 the Assctiations, Bo¥d
of Tru5tee5 Ithe CourKiO has c0nfr0ntedun￿rt8intyhead on, and thiswill contitvjein 2021.
The impact of COVID-19 on the Assgciatyon has been signihcant. As with all charities. the Association's ability ts)
fundraise has been severely affected with the majority of planrEd activities in 2020 beirÉ caJKelled. The AEociatitin
acted swiftlytotake advantage of the varlousapplopriate formsof governmentsuppcrt, includngfurlough.
The Association had to change how it delivered e)asting serm￿5 while responding to both new needs and increasiig
demand. The respite hotels had to close during the lockdown and face-to-face ¢asework and befriendng We￿ Tr)t
POS5ible.Atthe same time,the demand for our welfare servi￿5 increa*d dramaticallyasthe effects of isolation
social distancing became apparent. We responded by delivering seNT￿S virtudly, and introducing our Op CON
welfare servicewhich has supported over 30.(K)O p0tentiallyvu1nerab￿ membersofthe RAF community. In re5P
to the pandemit.the Councl had toconsider decisveand significantaction to protectthe work of the Associati￿ts)
meetthe needs of the RAF communtyfor the Ic*ng-term.The difficultdecisK)n to repurw)sethe respite care hote& a
to reshapethe organisationto posltion itforthe future resukedin the unfortunate needfor redundartles

THE ROYALAIR FORCESAS50CIATION
TRUSTEES. REPORTICONTINUEDI
YEARENDED31 DECEMBER2020
Impact of COVlD-19￿d our respOr￿e {continuedl
Thè Association hasadopted a five-stage approachin respondingtothe pandemic..
Address the immediatechallengesthat COVID-19presentstothe Assoaationand siakehddeys.
Manage the shortto medium-terrnfinancialchallenges.
Create a detailed plan to returnthe Association to'scale'as quicHy as possible.
Reirnagine the next normal,the implications forthe Associationand howthe charityshouk4 renventand p0sf￿n
itself.
Change the structures, prcKes5es and servi￿5 delivered by the Associatiory addressing the new, emerging need,
the changing landscape andthe available reSoUr￿s.
To ensure the A&sociatlDncomesthrcMJghthe pandemicand 15 P051tioned to meetthe post-COVID welfare needs ofthe
RAFcommunity. the Council reviewed the charity'sstrategicobjective& In doingthis, the Council reèfflrmed thatthe
primary purw5e of the A550ciation 15 to promote. through comradeship ewerKlered by its members, the welfJe
charitsble mean5 of the RAF c(ThmuThty- i.e. itisa welfare charity. The Councila150 agreed thatthe charity'sstrate
objective5 will remain relevant a post-COMD environmenL although achIe￿ing these objectives wll require the
Associatlgn to adapt to societsl and economic chan8es caused by the pandemic. The Council is approaching the
challenges ahead with an open mind. strong leadership, 3gile management, and evidence-tmsed decision-makng to
ensure the Association makes the most effertive use of it5 limited and constrained re50urtes. In support of this, the
Council has adoptedthe follo￿Ing strategic'designprlnci￿es'.
Decisionswill be evidence-based., where necessarydats is unavailable, the Assctiation will invest in research.
The needs of the majorityof benefiaarieswill be putbeforeall else.
3. The charity's funds will be used to besteffertin deliveringwelfaresupportto the RAF community.
4. The charity will strive formaximLm Scale and reach in itsdel1veryofservi￿$, whilestill providing speaalistseNces
to niche groups whereverprarticable.
5. The Association recognisesthe valueof volunteers and will promole and supwrtthem, be theymembersornot.
6. The charity will seek out okportunitiesto partner with other organisatitsns tothe mutual benefrtof its beneficiarie%
7. The charitywill adopt digital toolsand ways of worknngto enhancetheefficiency, compliarhce, andeffectlvenessof
its outputs.
OpCONNECT
In March 2020 the Association develok*d Op CONNECT, a four-pronged. immediate resp[￿se to the COVIL¥19
pandemic to address the issues of isolation and loneliness, anxletyand access to food I hygieneproducts. Each of Ihe
four emergency projects cOm￿emented, en￿a￿ed and extended existing welfare se1vi￿S and they were launched
immediately after the lockdown be8an. The projects were managed by a skeleton trew of employees lover 51YA of
emp1oyeeswerefurto￿hed},wIth the support tsfenthLtsiasticrnembersand volunteers.

THE ROYAL AIR FORCESASSOCIAnON
TRUSTEES. REPORTIcoNnNUED}
YEARENDED31 DECEMBER2020
OpCONNECTlcontinuedl
The four emergency prc¥ects promded c74er 500 doorstep drcps of f￿d & hy8ierp produLts, over l(Q,(KIote￿PhOne
welfare checkswere made to hlgher-ri￿k individJaL8 and aseven-dayon dernand helpllnewas established. Bythe eNJ
of 2020. over 2.COQ people were receI￿1ng weewy befrEnding ca115 and over 8(M) volunteers had b*n recruited aNJ
trained, digitally 5UPPQrted and managedto help u5 deliverop CONNECT.The Ass(Kiationwishes to acknO￿edge 3fKI
thank all its volunteers and 15 particularly grateful to CGI, ICAP, MBDA, Raytheon. Rolls Royce and Sage and the
employees forsupFX)rtlngtheprojects. Ourinnovative tsnline entertainment program. Project ENTERTAIN. wasvie¥%ed
more than 1.5 million timesacrossthe world. keeplry people connected with the RAF pastand present. Itdelivereda
daily, wide-rangingschedule of Fa￿b￿k Live and Zoom ses￿OrE including low-irnpactfitness, tap dancing. drill tuition.
aviation history, con￿rtS and sing-alongs. quilles, read and watchlrec1s￿S and guestinterviewees.
The success of Op CONNECThighlighted an increased and unmet need for servicesto address lonelinessand isolation
and the four projects have been incorporated into theAssociatiorfs permanentwelfare ser￿lCe5. ProjertHELPLINE
BAGDROP supported over 6,200 benef￿laries and has been incorporated into the As50ciation'5 welfare casewk
service. Project ENTERTAIN, which was re-introduced durirg the second lockdown, will, duri￿ 2021. be evol￿ ints
'Air Mail+'. Project OUTREACH has been combined with the Association's befrien(fing servi￿ under the banrEr
'Connections For Life..
Welfare strateiv
Our welfare strategy aims to pro*ide the RAF community with person<entred, proactive and easy-t0-ae￿s 5UPPOrt
and servicesthatwill enhancetheirhealth,financial sewrity and independence. Italso integrate5 a bespoke portfrfKI
of assistance from the State, the Association and other specialist providers to enable the members of the RAF
communityto overcomebarrierstheyfacethroughouttheirlive5. In 2020, 0￿r80,0(￿) rneMbe￿ ofthe RAF communty
who required practical. emotional orfinancial assistan￿ were SLPPOrted by the Associaticn. This was made pos%ble
by our thrivin8 nthork of members and supporters who volJnteered theirtime to supp(Kt the Association and ow
employees.
As onè of the oldest military charitie5, Wlth a 90-year history of support to the RAF tommunity. the Associati(m
committed to delivering need5-led, evidenced-b85ed welfare serV￿es. The Association is working alorEside the other
principal welfare caseworkiry military charitie5, the Royal Brit15h Legion and SSAFA. to..
Develop an ovenriewof our collective reac￿ work and impact.
Share informatlonon variws on-and off4inetrainlng methods.
Reviewstandard clEntconsentdeclarations.
Consider howwe bettersupport indwiduals I households digitally.
Develop common stsndardson CMS21
In 2020 we launched a research study to identifythe longer-term effects of COVID-19 on the flAF community. Thi%
eviden￿ will infomi the futuredevelopmentof seNI￿s.
l The Client Mana8ementSystem ICMSICMS21 IcoFltrolled bythe Confederation of BritishSekviceOr8anisations
ICOBSEOI and managed bySSAFAI

THE ROYALAIR FORCESASSOCIATION
TRUSTEES. REPORTICONTINUEOI
YEARENDED31 DECEMBER2020
Emotional and mentalwellbeir
Our national befriend1r￿ servi￿, designed to reduce the loneline5S Within the RAF veteran comrnunty, continued
during 2020 although it was transformed from a face-to-face to tslephone Servi￿ in response to the pandenic.
Followingthe success ofProjectOUTREA(H the ￿0serVI￿5h8ve been amalgamated and nowform'connertions For
Life'.The Association's ethos Is that once you are partof the RAF cornmunity. you are always partof it.That is whys%e
are determined to do all we can to make sijre no one feels alone. Connections For Life"ft8hts lonellness throL
friendshi￿ and will continueto match carin&friendlyvolunteerswith thi)seexFeriencing isolatiw, and will proattnte
contsct potentiallyvulneraNemembersof the RAF communityto check on thelrwelfare.
Improving mentsl wellbeingcontinue5to be a keythe￿£ forthe Asy)ciatiornA newbespokemental WdIbel￿tralni￿E
course for non-sermng member5 of the RAF comfnunity. 'Finding it Tough?, (Fin wa5 develoFed during late 2019.
Originally designed as a face-to-face training course. in response to the lockdown a shorter. online version was
developed and h35 been delniered to over 530 Indivi￿al$. The FIT course helps people to reccgni* that evewr
struggles Wlth life fromtlme to tlme.we discusshowthe specBI ex[erIen￿ of being partof the widerRAFcomm(nty
can also come with challeryges and suggestpractical strategies to help irnprove resilience. In line with our ctThmilnEnt
to providing the highest qlkility support for the RAF community, the training is Quality Marked, and partiupants ¥e
encouragedtotake part in a long-term research 5tudyto determlne its effeciivene5S.
Developmentworka150 continuedto providea bespoke tsnline hub for peop￿ in the 5erMng RAF communitywho are
carlngfor family members with dementia. Research byAlzheimerfs Societysuggeststhatan estimated 70,000 peop
with an RAF background have dementia. In 2018 an Associatior* study, which sought to understand the social,
geographical andbiological characteristics of the RAF community. revea5edthat9% of sermng RAF KErsonnel had un￿ld
caring respcnsibilitiesforan olderadult.TheAssoci3tion teamed upwith Alzheimerfs Society and CGI to createthe first
phase of our new'NavigatirE Dementia, project. an online hub. The hubcomFlements the support alreadyprowjed by
the RAF by Sinking indiMdua15 With other RAF carersand families affected by dernentia. proMdI￿ a vital knowledge hub
and steering themtoWardsfurtherre￿urCes and support. The hubhad over 3.￿oUniql￿VI51tOrSduri￿ 2020.
Hou5in8and respite breaks
Otherwelfare seryiw included Te5Pltecareand holida￿ provÉded by ourWin8s Break hotels and chalets. lunchclubs
and our sheltered and independent livingschemesatfour locations acrossthe UK.
All respite care andholiday setvices hadto c105ein March 2020as a resultof COVID-related reStr￿tIC￿$.The panderric
particularly affected the Wings Break Hotels IRothExJry HoLL5e and Flowerd)wn House), a5 the rn3jorty of the hoÈ
guests were in COVID-19 'higher r$k' categories. COVID-19. the introduction of social distsncinE and the sh¢Id1￿ of
vulnerablegroup5 has consderablych3rEed the landseèpeoftherespite care marketandccffisickrat4e cha11erEeswere
identified in rtropeningthewings Break Hotels.giving riseto a significantT15kforthe Association. The two Wings Break
Hotels have historically struggled to achieve full occuparKy, requiring tonsiderable subsiL* from the charity and the
level of cost of providiry respite breaks to a limited number of beneficiaries was significant. The need to mainlan a
COVID-safe envsronment bwth enhanced infertion-ryjntrol praCtI￿S and social distarKirE would ha￿ increased costs,
further reduced guest numbers and diminished the quality ofthe guests. experience. Atthe same time, Op CONNE
had identified otherconsKlerable unmetneeds, whichthe Association needed to re5Fx)nd to if possible.

THE ROYAL AIR FORCESASSOCIATION
TRUSTEES. REPORTICONTJNUEDI
YEARENDED31 DECEMBER20ZO
Houslngand resplte breakslcontlnuedl
Against this background, and following consultation with affected employees, in july 2020 the Council agreed
reluctantly to cease the delwery of organic respite care. resulting in the permanent c{￿ure of Rothbury House
Flowerdown House a5 WingsBreak faalities forre5￿te B￿#5. However,the Council 15 committed to Meetingtt￿
of those who, ordinarily, would visitwings Breakfacilities for ressite care breaks throughalternativemeans. Re*￿h
has since been carried outto deteminethe bestfutureuse of both hote151tes. In February 202L the Council decickd
Ihat, based on the findi5￿5 of this researth, Rothbury Houseshould beretsined bytheAss(*iation and Isubjectto locd
authority permissions) be converted to retirement accommodation. A long-term lease agreement for Flower¢h
House ha5 been agreed with the YMCADulverton Group,a Somerset-ksed charity.
The Association's holKlay servres re-0￿ned in Septem￿rSUppxyrtlng 180gue5ts.
The Association operates four sheltered hO￿ing schemes. in Melton Mowbray, Moffat, Rothbjry and, throuth RAFA
Housing Limited. Storrin8ton, whid) in total are hometo 150 tenants.
Financial support
In 2020, over4,5CK) cases were supported by our stsnd-alone we￿are caSew(￿kerS. In addition to this, our brathes
5UPPQrted many tho￿and5 more cases locally. The AsSociatic￿, via the military charity sector grant system and the
Client Management System ICMSI Icontrolled by the Confederation of Britlsh Service organi￿tiOnS (COB￿0) ayl
managed by 55AFAI almoni5ed over £3m, principally fr(xn the RAF Benevolent Fund, in financial support for these
beneficiarie5.
Additionally, the Aswciation received morethan 840ArmedForces Comper6ation Schemeand war penslonenqui￿4
and provided speci31i5t adviceand stjpportto Secure £327k in compensation forbenefidaries.
Support tothe serving
We a150 maintained our effwts to keepserwng families strongand connectedthrou8h'. our SUPPLrtto contacthows
on RAF ststions,. Storybo)kWingslwhichallowed children to bet*fitfrom a bedtime sloryevenwhentheirparent
servlngawayl,. and D(K)dle Boxes2 which were i5suedto children ar￿ parents aeross 21statior￿. Our free Wi-Fi promded
in 43 facilities across 14 stations / MOD sites and to 82 houses used for welfare purposes by the RAF, kept senring
personnel in touchwith family and friends andwasusedover 150,(QOtimes in 2020.
IWF FamillÈsFedÈration
Our management Of the RAF Families Federation has also played a key role in capturing evidence on issues whKh
oncem serving RAF peF50nnel and theirfamilies- and in 5haringthiswith military and Governmentdeasion-maker&
RAF Families Federation e￿dence on family life is frequently cited in the report by Andrew Selous MP, 'Living in (Kjr
Shoes.. Understand¥)g the needs of UKArrned FOr￿S Families13 thatwas Commissioned by the Secretary of ststs for
Defence. The A$5(Kiation is delithted that, having managedthe Familes Federati(￿ contracts1n￿ its In￿ptIOn n 2(K)7.
it ha5 been awardedthe contractby the RAF forafurthertiveyear5.
Doodle Boxes are memory boxescreated bythe ch'ldren of the deployed to remind them ofhome.
Livin
in our sho
nderstandi
then
dsofUK Armed F
families
RAF Familie5 Federation
raf-ff.o

THE ROYALAIRFORCESASSOCIATSThN
TRUSTEES, REPORT ICONMNUEDI
YEARENDED31 DECEMBER2020
RAFA Kidz
The PAF'S Community Needs Awsunent ICNAI identified the proV￿10n of childcare as a critScal area of need #i
2019 we wereapprgathedbythe RAFto assistfurtherin alleviatingthis needthroughthe development of a neWstr￿d
of work. Through our subsdiaries, we took responsibility for the nurserie5 at RAF Odiham and RAFC Cranwell during
2019, and the nursery at RAFDigbyln january2020.we nowsuFportover4(M)children andtheir familes. which directy
contribute5 to both the charitable objects of the Asscoation and it5 Strategic welfare aim.
Membership
Since 2014, over 43,0)O new members have joined the Association, brin@"ng the cul￿nt rnemberstryp las of 31
December 20201 to 69,OCKJ. Recruitment is acr055 all age groups and over half of those servirE in the RAFt0d￿ arè
rnember5 of the Asscciation. The vitsl role played by our members cannot be overstated,. manythousands vdurrteer
their time to deliver welfare 5ervKe5, raise essential fu￿15. provide ccmradeship and 5UFPOrt to each other. man
our branch and branth Club netWLYkand helpin countlessotherways.
Branthes
There are approximately 3CKJ RAF A5SOUation branthes located across the UK and in 18 othèr countries across Ihe
world. Branches are charities in their own right, managedbytheir br￿ch committee5 biJt5ubjectto the A5S0Ctat￿Jn'5
Royal Charter, Rules, Byelaws and Stan(krd Regulations.
Branches maintaincontactatloeal level with the Setving and ex-sermce cornmunity. prcwide weffaresupportand r
funds. For social purposes. some brdnthes have memberg clubs affiliated to them. During 2020 the Associati)n was
Successf￿ in securing over £1.4million of fundingfor 31 branchesfromtheAmied Forces Ccwenant Fund Trustthro
their Veterans, Community Centres programme. This funding was restricted for approved renovations and
improvementstothe branche5' club5. The Assotiation also supported fourbranthesthrO￿h ltsown branch pnJFeity
grantscheme.
Brancheswere unaLle to meetface-ttrface during muchof 2020 due to COVID-restrKticns and their clubs havebeen
temporarily closed. Branches have worked hard to maintain contact with thelr members, includin8 deliverirg an
outreach pro8ramme to thoseover70 year501d.
The Assoclation has supwrted its branches andbranch clubs thrO￿hl)utthe yearwith guidance onthe restrictionsand
the governMent5UP￿rt availableto them, enablingthem to claimover £1 million in grants and fUrI￿ghsUpp0rt.Th
income is recorded in the branches. and clubs. financial statements, which are not consdidated with those of the
Association.
io

THE ROYALAIR FORCESASSOCIATION
TRUSTEES. REPORT ICONTINUEDI
YEARENDE031 DECEMBER2020
VolLFnteering
The As50cialion's robust volunteer recrutmert arld training prows contin￿d to play a central rde in buiklirg
rnaintainin8 a highly competsnt welfare volunteer field force, undertakirE casework and Connertions For Life l(FLI.
Fate-to-facetrainlng sesSior￿were curtailed in 2020dueto COVID. but0verl.0￿VOlu)teers attended onlnetrèiThng
All our welfare volunteer5 are provided with regulèr continual professional development opportunities, al￿ our
Voluntee￿ are 5UPPOrted both practically and emotionally throuth our Community Sur4)ort team. The impact of the
welfare serVi￿S delivered by our volunteerson ihe mental wellbeirE of the individuabthey as5iStls monitored u&ng
Ihe internationally validated Short Warwick-EdinbLrgh Mental WellbeirE Scale. The Association remain5 the on
milltarycharltyto provlde nationallyaccrec¥tedtrainingto itswelfare volunteers.
Fundraislng
As part ofthe Asscoatiorfscommf(menttothe hEhestPo￿ib1e 5tandard5 offunthaisng. wedid ￿rut￿OStthro￿)ut
2020 to ensurethatall our activities were complkAntwith legislative, reguLAtoryand best praCti￿Standards.We hwe
been re815tered wilh the Fundraising ReguLHtor sirteits inception in 2016, demcnstratingour commitmenttothe C(xle
of Fundraising Prattice and the Fundrdi5irg Pr(Thise.
Successful fundraisiryg is crltical to the sustained financial health of the A550CBtion and our abilityto provide support
to the RAF community. The pandernic has had a significant effect on all areas of our fundraising activity. but the
generosityof our members, branches,volunteers and supporters in responseto our emergencyappeals has been vtsl
in replacing sorneof our lostincome.The mainsourcesof fundraising inc(Kne duriry 2020were gifts in wills,volLnteer
fundraisingactivrties, donation5 frorll indwidua&,grantsfromtrustsand foundationsand fundin8andgifts in kind frcm
corporate partnerships.
The Association is grateful for the support shown to its work by all those who funded it durirE 2020. Supp)rt to the
Association frc*n trusts, foundations and other organisations came fr(m a number of SOLtrces. Some wish to re￿in
anonymous butothers included..
Annjane GreenTrust
Annington Trust
Armed For￿$ CovenantFundTrust
Aerosup*rbatics Ltd
Asali
Aviation Focus Group
B D Thornas Charitsble Trust
Community Foundationfor Lancashire
CGI
CTC London Ltd
Davis-RubensCharltab￿ Trust
Edith Murphy Foundation
Foundation SeotlarKI
Gerald Bentall char￿ableTrUst
Green Hall Foundation
Hilda Farr CharitableTru5t
l.M.L.D. Forde CharitsbleTrust
JP Morgan Chase
li

THE ROYALAIR FORCESASSOCIATION
TRUStEES' REPORTICONTINUEDI
YEARENDED31 DECEMBER2020
Fundraislnglcontlnuedl
Fujitsu
Lelcestershireand Rutland Community Foundatlon
Lillie Cjohnson CharltableTrust
Lockheed Martin UK
Masonic Charitable FourKlation
Maud Elkington CharitableTrust
Mazars Charitable Trust
MBDA
Michael Watson CharitableTrust
Mr & Mrswilliam Donald's Memorial Tru#
Pukaar News
Rare Tea Companv
Raytheon UK
Rigby Foundation
Sage
Selkirk No 2 Trust
Sir Donald and Lady Edna WilsonCharitsbleTrust
Sirjeremiah Colman GiftTrust
The DCMSand National Lotterycommunity Fund
The Ministry of Defe￿can￿ the Cabinetoffi
The Scottish Government
Wilkln & Sons
TP ICAP
Vichai Srivaddhanaprabha Foundation
Western PowèrDlstrl￿t1On
During 2020, all our interactionswith theEe￿ra1 publicwerecarrEdout byour efflployees and vol￿teers, exceptfcf
two suppliers whose seNiceswe employed to interactdirectly with the public to adrninister our Weekly Lotto and to
support our ChristmasTV campaign.we ensuredthatcontracts,which includedfundr&i5ing Complian￿ clauses.were
in place with these suppliers, and with all corpordte partners who raised furKls for us. As part of our work to ensure
compliance with fundrasing reg(4ation and best practi￿, we monrtored our SUP￿lerS cOrstan￿V to ensure they nEt
the same high stsndardswe exk*Cted of ourown fundra￿ers.The Association ha5 a FundraisngComF4aints PolwarKI
has processes in plèce to protect vulnerable doTh)rs. During 2020 we received no c(ThplHints about ourfundtsian&
whether carried out by us direcdy or bythe supplier5 in relationto Lotto or the ChrGtmasTVcampaign.
Governan
Public scrutinyof charl￿e5 ha5continuedthroLEhout 2020 andwe recognisethe importance of demonstratlng biyj) the
mpact of ourservSces and the integrity with which we operate. The Association iscomrnittèd to meetlngthe hlgFEst
5tand3rd5 of governano in all it5 activities and to ensuring that everyone who acts in the name of the ASsocialK￿.
volunteers, employees, and members, meets the highest stsndard5 of conduct and probity. The Association has
adopted the Charity Governan￿ Code and conducts an annual review against the Code to support continuw5
improvement. Furtherdetai15are pr(Ni(kd laterin thls report.
12

THE ROYAL AIR FORCESASSOCIATION
TRUSTEES. REPORTICONTINUEDI
YEARENDED31 DECEMBER2020
Publicbenefit
When reviewing the Associat1￿7,5 aims and objectives and in planning activitie5 and policies, the Trustees h•
consideredthe Charity Commission'sgeneralgUidan￿ on public be¢￿fitand to its 5upplementaryguidanceon publc
benefit and fee chargirg. All service5 are eTther free or heavily5ub5idised. whe￿ fees are charged, for exam￿ the
Costs of a respite break or occupyng a residential property, the benefiaary'5 mean5 are alwayscon%dered so that Th)
eligible memberof the RAFcomrnunitV15 prevented from accessingthe services of theAssociation because they ￿not
afford the fvll cost. The AsSOClaticn also provi&sa public benefit as itpromoteselfldency in the RAF, by underpinnw
spiritof pride and mutual loyalty. and so contributingto the defe￿ of the Llnited King(k)m and its Interests.
In draftin8the above5tatements, the Trustees have complied with the dutytn the CharitiesAct 201L to have due
regard to public bènefitguidanTr pullished bythè Charitycommissicth.
FINANCIALREVIEW
Income
During the year, the con5didated inc(The raised from rnembers volunteers, the general public, and inve5trnents
£13.922k, a decrease of 14 percent12019.. £16.236kl. Accurate predictions of income are extreme￿ difficuk due
uncertainty surrounditE donations inclurfing legacies, and the impactof economicand other external factors. In 2020
legacy income was £2,886k1£4,272k in 20191, a reducticn of £1,386k from 2019. The annual Wings Appeal was
significantly reduced dueto COVID-restrictions in 2020 butthe Associatitt)'s emergency3p￿aLK raised over£230kurith
branches donating an additional £59(M(. Investment income of £864k decreased by 15.5% year-onwear reflectirg a
volatile year with markets impacted by COVID, Brex￿ and the US electian12019.. £1.023kl. Despite the challereng
market conditions, the Association's investment performance wa5 robust. out-perfoming the benchmark and its
charity peergroup.
Duringthe year thegr0uPre￿Trled Govemmentjob Retentionscheme grantincome of£l,138kforstaff fvrf0￿h vthrh
has enabled the Assc(iaticn to retainstaff duringthe period.
Expenditure
In 2020 expendture of£17,240k was £31kabove the 2019 le￿I1£17,209k). £14,824k12019.. £12,5%k) w35 spenton
harttable activitie5. 87.3pon every pourxl raised was spenton welfareactivities. Oue to the COVID-19 pandemKthe
Council reluctantly deaded to cease the provsion of organicrespite care, permanentlyclosing ROthI￿ry House Fk)tel
and Flowerdown House Hotel. A wider reshaping of the organisation wa5 undertaken to engjre that the Associatsn
was able to generatesaving50f C£2.￿j0k￿h11e detsveringthevery bestsuw)ortto currentand futurebenefiaarie5. Th5
resulted in 91 redundanaes.
RAFATRAD
RAFATRAD Lim*ed, the Ass[￿￿￿tIOn,5 trading and publ&hln@ arm, made an operating loss in 2020 of £3* loprair
Ios5 in 2019 of £47kl. This was primarily due to the cancellation of air shows due to COVID-19, althO￿h a signific￿t
Increase in online retailing made up in part for this. The Trustees antiapate that some tradirE, particularly air thcw
events, should resune in late 2021 andthata breakeven pogtion will begeneratedas a re5uIt. RAFATRAD has rEdu￿d
its expenditure to bri￿ It In line wtth ltsactlvity levels forthe forecastablefuture.
13

THE ROYAL AIRFORCESASSOCIATION
TRUSTEES. REPORTICONTINUEDI
YEARENDED31 DECEMBER2020
RAFA Houslng
RAFA Housing Limited, the Association's independent Iiv5n8 scheme, made an operating profit in 2020 of £29k
(operating profitin 2019 of £61klThiswas in line with expectations. with the inccAne andexpenditure of RAFAH0￿r
Limitsd largely unaffected by COVID-19. Althoughface-to-facecontartwith tenants at RAFA Housingwas not possible
during lockdoNn and sornecontractorworks had to be delayed, service5 are now largeW backto normal.
IIAFA Kidz
RAFA Kidz Limited continued to operateits earlyyear5' nursery activity.taking overthe operationof the nurseryatMF
Digby in january 2020. Our prescho)I nurserEs, operated by RAFA Kidz Limlted and its charitable subsidiary, RAFA
Kidzone Limlted, continued to open throughout lockd¢Jwn. offering childcare for our key workers. Whil# inconp i5
impacted, by managing our costsand acces5ingthe GovemrnenYSfurl￿8h scheme,we made a deficit of £300kover
the year.
The netassets of subsidiaries are consdidatedatGrouplevel.
Investmentpolicy and perforMa￿e
The Trustees have the powerto investanyofthe fund5 ofthe Assoclation not immediately requiredfor the pu¢pTh5
of the Association in accordance with the provisions of the Trustee Act 2000. The Tru5tee-appointed investrnEnt
managers, Rathbones Investmentmanagement Limitedand Rothschild & Co areman3ged bythe Council's Fin￿￿
Investmentcommittee. assisted with independent oversight pro¥idèd byAsset Rlsk Consultants.
The investment porffolio comprises three main elemerrts managed by Rathbones'.111 an unrestricted fund,121 the
Formby Branch Depositfund. and131 the Branch Deposit Fund. a pooled fundof monies hÈldin trustfor and Investrd
on behalf of the Assockltion's branches. The Rothschild Fund is also a pooled fund held in trust for and invested on
behalf of the Association's brarKhes. The Association continues to rein￿St dividend income back into the portfd*),
which amounted to £747kduring 20201£658k in 20191.
The Association's investments were reviewed at quarterlycommittee meetingsin 2020 and perfornia￿e reportedto
the Council. The review of the investment managers planned for 2020 was not undertaken due to COVID-19 aNJ the
significant market volatility. It is planned to undertake this review again in 2022. The A550tiation will coniinue tr)
employ the services of Asset Risk Consultants throughout 2021 to provide analysis and evaluation of investn￿nt
performance, whichservesto enhan￿the decigon-makingcapability of the FInan￿and Investmentcommittee.
The Association's investmerrt porttolio of £22,812k12019.. £26,782kl reflects a reduction in marketvalue of £3970k
frorn 2019 in light of the uncertainty and volatility in the financial markets caused by COVID-19, Brexit and the U5
election.Thataside. the perfom)anceofthe AS￿cIation'S investmentportfoltowhencompared with thecharity secbx
peer group and the agreed benchmark was strong by cornparison durin8 this turbulent time. Cash holdings ¥e
optimi5ed to mitigate any need to 5ellanyfund investmentholding5to redu￿ anyassoaatedmarketrisk. Higher￿
of cash are currentlybeingheldduringthistime of economr uncertainty.
14

THE ROYAL AIR FORCESASSOCIAnON
TRU5TEES' REPORTICONTINUEDI
YEARENDED31 DECEMBER2020
Pensions
The deficitin the defirEd benefitpension scheme at31 December2020has beencalculated in acc(rdanowith Ff6102
regulations.The amountofthe deficit has increased from £430k in 2019to £830katthe end of 2020.The increa* s
primarily due to the agreed suspension of employer contributions in 2020, due to the challenges faced by tr
Association duetts COVID. The Association made additional payments of £105kin 20201£506kin 20191 intothe Sche￿
and remains firmly committed to reducing the deficlt and in the long term eradicating it complete￿. The A5soaaton
has agreed a revised recovery plan with the Pensicn Trustees and the ReB￿ator, refletting the likely income cl the
Association in 2021and 2022.
Reserves policy
The reserves policywas reVIe￿d by the Counal in November 2020. Trustees have adopted a prudent approath to
ensure that the As50Clation holds enough reserves to respond to current and future welfare need5 quIc￿V
effectively. Resetves planning is H keycomponentof the Assoaatiorfs strategicplanning prO￿55,the Counol reguk
review the level of reseNesto ensurethatfunds are availableto dellverourwe1fareserv￿es and programmesand
secure the long-term sustainatx.lity of the Association. From research undertaken in recent years. the AssouatK)n
aware of a growing need amongthe youngergeneration and this need is likely to grow. Linkedto this uncertainty L
trend of cuts in social welfare budgets across the UK and there is evdencè of Increasing levels of social isolatp)n
loneliness amongstall ages.
There isa150 the riska550Ciated with having a large value investmentportfolk) where political un￿r￿lDtythro
the USA, China. the UK and mainland Europe has resulted in a high level of volatility in the financial markets. wh￿￿
could lead to a largercorrection atanytime.Takingall thesefactors into account,the Tru5téÈs have adopted a resetves
policy which seeks to mitigate risks associated with holdin8 largevalue investmerrts and property assets.
The Associatlon adopts a forward-lookng strategic rlsk-based ouilook on the needs of the RAF community
consequentlydoes not use5hort-term measures focusingon a limited number of months, operatirg costs. The Fin￿
and Investmentcorrfflittee review5 the Medium-Term Financial Plan la rolling plan lookin6f0n￿ard5 year51 in re¥xxr£
to the needs of the RAF community at each of its meetings and makes recommendation to the Council on the
management of financial risks. However. the Association is heavily reliant on voluntsry income from fundraising
legacies and donations, which is not guaranteed, and which was particularly affected by COVID-19 throUgh￿rt 2020.
The Trustees have therefcfe agreed to maintain a minimum level of unrestricted free reserves to cover the costs
a5$0Clated with normal operatlOn5 over a 12-month period to addre￿ the risks of COVID-19 to the delivery of our
services and programme5 to beneficiarES, mernbers and employees. In addition, as considerable uncertainty re￿n5
aboutthe continuing impactofthe par￿emIe0n vduntaryincome in 2021, theTrustees hake alsoagreed to Under￿ffIte
anydeficit inthe fundraisingtsrget inclLKled in the 2021bucÈetfromthe re5ervesto maintain the welfare service&
At the end of December 2020. consolidated general unrestricted reserve5 totalled £11.515k1£14,(*19k in 20191
including charityassets of £6.229k1£6.376k in 20191. Cor601idated free reserves {￿t general reseNesl at the end of
December 2020 totalled £5,286k1£7,673k in 20191, which the Association is holding to fund 2021 operattona
expendiiure of up to twelve rnonths and are therefore in-line with the stated reserves policy, however a prudent
approach 15 being adopted to ensure thatstrategictran5formationprojects can be funded. Restricted reservesfunds
receivedfor specific activity, increased from£L769k in 2019to £2.551katthe end of De￿mber 2020.
15

THE ROYALAIR FORCE5ASSOCiATION
TRUSTEES, REPORTICONTINUEDI
YEARENDED31 DECEMBER2020
Reserves politylontlnuedl
The Council has designated fLtndsof £18.769k12019 £20.335kl to be u5edto undertake multi-yearactivityto InCre￿e
our welfare servI￿s, reaching more of the RAF community, respond to the implicatlons ol the COVID-19 pandenK,
support our plans to increase and diversify our income in the long-term, and support the imprcwement of our b￿k-
office functic*)sto divertmoreexpenditure towards ourbereficiaries.
R15k Management
The Trustees have overall re5ponsbilityfor ensuring that the Association has an appropriate system of contrc4s.
financial and otherwise, across the A5S(Kk4tion and its Subsidiaries to provide reasonab1ea5St2rar￿e that relevant I
and regulations are complEd with, that their assets are safeguarded against un3Uthorised use or disposal, and that
proper recordsare maint3ined, and inforniation is reliat4e.
The Association does notgenerally havean appetite forhigh exposure risk5,' nevertheless,the Trusteesreco8nisethat
deliverirg uponthe ambitio￿ strategicaim5 and objertives outlinedin the Strategic Plan to 2030wll involvea degree
of risk-taking and Un￿rtainty. Assuch there isan appetitefi)rhigher levels of r￿kwhereapproprlate todellveragalnst
strategic aims, objectivesand targets provided thereis a compreh2nsiveunderstanding ofthe exposure5 Invol￿￿d
potential benefits arising, and 5ubjecttothere beingapproprHte controls and approval pro￿SSeS in place. In tem￿ of
prioritie5, Trustees have agreed that the needto avotd reputational, Compliar￿ and exce55ive finanaal risk will t*e
priority overotherfactors, recognising balanced assessments must be made as, in many cases. risks are attachedty
to doingsomething and doing nothing.
The Associatlon's rlsk mana8ement process is designed to identify and assess risks such that appropriate rEk
managementstrategies are implemented, and their effectiveY*ss monitored. Trustses have identifled the followngas
its key risks and the 5trategtc risk register is le￿ew@d3teach Council meetirE.
FÈ7ilureto sustoin o lorgetsndengogedmemLErshiB Plans inclu(k recruitmentcampaigrs, improved retenton
by engaglngwith personnel leavngthe RAF,and improvingengagementwlth current memlRrslDp.
Foilureto deliverquo1ityondsofeseThi￿5. Mits'gation includes regdarreviews of policies, KPIS and assuM
sources. Counciv Committee oversight, employment of profes51£￿allY qualffjied staff, safer recruithEnt
processes and training of employeesand voluntsers.
8n7nch and Club governan￿ t7nd complAantrfoilure. The Council has identified regulatory compliance at
branch level asa strategic risk with concerls aboutthe wlderrewtstional riskthatthe Association Lya
decentralised structure where branches are separate charitie5 but operating under a shared name 3nd
constitution. The As50Clation ha5 undertaken considera)le activity to ensure that branch committees
understand their re5ponsitylities as charlty trustees and to provide guithnce and advi￿. 8etween Ocbjber
2018 and February 2020. 23 brdnth goVernan￿wOrkShop$weredel1Vered, 3nd a 8ranch Governance Action
Plan has been agreed with the Charity Commission to rnitigate fuTtherthe risk whilesupporting branches.
Long termfinunciolsustoinubilityandshort-tem?c05hflowfoilure. Mltlgation plans indude fin0r￿talpIarW1n￿
and performance monltorin& both in terms ofannual bud8ets, reserve5 and investments, subjertto ongong
Committee and Council oversEht, continuirg to invest in fundraisng capacity and diverslfication of
streams.
E¥tem(Jl threots. Mitigation plans include collabcrfation with other charitie5 and organisations, devekpi
unique serwce propositiors and diversificationof Serv￿eproV￿sICfi.
16

THE ROYAL AIR FORCESASSOCIATION
TRU5TEES' REPORTICONTINUEDI
YEAR ENDE031 DECEM8ER2020
Risk Management Icontlnue(11
Loss of opemtiont71capobilty. Plans indude development of business continuity plans, cvoer security, a
range of proce5se5 toenswerecnjthientand rèiention of appropriately qualrfied and trainedemployeesarnj
volunteers.
SignificontL*Jungemunagementprojects. Mitigation plans include developmentof busne55cases, project ri
reglsters, ènd over%ght by pr(4ectgoVernan￿boards,5mTènd committees.
Infomjation risk. Data is recognised as a strategic asset and protected accordingly. The Association errWctys
profe5siorolly qualified stsff who regularly review cyber and data policies and processes and has recenty
achievedcyber Esserrtrals Plus certification.
Corporote9overnoncef17Alurettndgroup leglslotive/regulutoryfuilure. Mitigation incknde5 reguL4r rev￿￿$ of
policies, Council, Committee andlor subsidiary Board over%ght, employmentof professionallyquatsfied $￿f
and mandatorytraining.
Operational risk regsters arealso subjectto regukr review bythe approwiate Council Committee SothatassUr￿￿
providedto the Council thatoperationalrisks arebeirgeffectively mana8ed.
The Council considersthat the major risks facing the A550C(ation inclu(k the ongoing and long-term impact on its
activitiesand incomes resulting from the currentCOVID-19 pandemic, includngthecontinuedpressureon fundraisrg
the threatof reduced incornefrixn evertsgenerallyand the increased costin meet1ngdemarn4sforitswelfareserw￿s.
The Cguncil 1$ Satisfied that, notw*thstsndin8 the increase in risk due to COVID-19. all risks are bein8 appropriatr
addressed. The A550ciation also recognises that the pandemlc presents opportunities both at a Strategic and
operational le￿lwhIchthe charity will continueto exploreoverthe comin8months.
STRUCTURE.GOVERNANCEAND MANAGEMENT
The RAF Association, which was establithed in 1930, wa5 incorporated by Roydl Charter in 1953. The Association LE a
registered charity governed bythe Royal Charter, ils Rulesand Byekws. The charity is alsoknown asthe RAFAssociation
and RAFA. The Association is registered with the Charity Commission and with the Office of the Scottish Charty
Regulator. Itis a150 registered with the FundraisirÉ Reg¢Jlatorand Information commissiorEr'sOffi￿I1Col. Followrg
the closure of the two Wings hotels the Assouation is no longer registered with, or règulated by, the Care Quarty
Commission ICQCI.The Association is a democratic, non-sectsrian nonyoliÉical organisationwith no affiliation to any
partyor partyorganisationor trade uniomThe Association is a memberofthe Confederation of British se￿1￿ and Ex-
service Organisations ICOBSEOI.
The Association is an 1nternationalorgani￿tIQn with 69,￿ member5 and in the regionof 300branches in the UK
oversea5. It is 0150 the ultimate parerht UndertakIr￿ of fourtrading subsidkiries IRAFATRAD Limited, Royal Air FOr￿S
A550Clation Hou5in& RAFAKidz timited, RAFA Kidzone Limitedland two non-active companieslRAFAClubs Lirnited and
RAFA Kidz Wings Limited).
17

THE ROYAL AIR FQRCESASSOCWTION
TRUSTEES, REPORTICONTINUEDI
YEARENDED31 DECEMBER2020
The Board ofTrustees ICouncll}
The Council is the Assockltion's Board of Trustees and is collertively accountable to the Association's meM￿r$ •d
other stakeholdersfor the long-term successof the Association. Member5 of the Council are eletted for a threewr
lerm, after which they are eligiue to stand for re*lection on a further two occagons, they may not hold office for a
continuous period exceeding nirE years. The Council is respofBible for the As￿CIatIOn'S cCmpli￿￿ with all relev
legislative and regulatory requirements. It is respon%ble for determining the strategy and values of the Associab"cn.
approving the annual busiress plan, 5UPPOrting strateges and the associated budget, holdrng the Secretary General
(who is responsible for the day-to-day management of the Association's affairs) and Senior Management Team b)
accountforthe Association's perfornan￿. standard90fconductand cOr￿rates0verna￿ts.
The Council recogni5e5 that good governan￿ is fundamental to the succe55 of the charity and is committed to
contlnuoL4S improvement in terms of Its own effectiveness, the governance of all group companies and braxh
governance. The Council has adopted the Charty Governance Code for larger charities and assesses annually h(yN r(
meets the pritXiFles, outcomes andrecommended practi￿. WhereareasfoTimprovementare identifiedan action p
is agreed and its implementation is monitored bythe Council. In 2020. the Council reviewed itsa5surance prctessesto
ensure the Association's corporate governarKe arrangements appropriateW match the complexity and Scale. and
associated risks, of it5 activities and structure.
The Council acknowledges that protecting people from harrn 15 a governan￿ priority. During 2020 the Assoaètion
commissioned an independent audit of its safeguardirg activitie5 by the Sccial Care Institute of Excellence. Thè ajdit
concluded that significant progress had been made in recent years in the development of quality assurance arKI
governance to support the developmènt of safeguarding which, in many ways, represent5 practice that is m￿e
advanced and establish￿ than may be seen in the wider sector. Neverthdess the report identified further areas for
improvementand the Council hasapproved an action plan to implementthe5e.
The comp051tion ofthe C0￿clI ispreKritredbythe Association's Rules and Byelaws and comwises upto 24trustees-.
The Presidentof Council, eletted trienniallyatAnnual Conferen￿. Air Marshal Sir 632 North KCB OBE MA FWS
was re-elected fora second term in 2020.
The Chairman of Council, elected triennialy at Annual Conference. Air Wice-marshal John cliffe CB OBE was re-
elected fora setorKI termin 2019.
The Treasurer of Councll. Mr PhilipTaggwas re-elertedfor afinal third term irh 2020.
Eightelected members. Elections are hekl triennially and are nextdue to be held in 2021.
Five area repTe5entative5 electedby Area Councils. Electionsareheldtriennialty and aredue in 2022.
Three serwice representatwe5 nominated bythe Royal Air For￿.
A representative nominated bythe RAF Benevolent Fund.The Fund has confirmed thatltwill no longer nomin*
a representativewhenthe currentterm of office held bythe incumbertexpires in 2021.
Up to a rnaximum offour co-opted trustees.
All Trustees give thelr time voluntsrity and receive no benefits from the Charity. Any expenses redaimed from tt
charity are setout in note 9t0 thè aCco￿ts.
18

THE ROYALAIR FORCESASSOCIATION
TRUSTEES, REPORTICONTINUEDI
YEAR ENDED 31 DECEMBER2020
The Board of Trustees Icounoll Icontinuedl
The CharityGovernance Code recommend5 atrustee board of ro rnorethan 12 men-bersand thecounol hasexpres*d
its intention to reduce its size. The Council is consulting with branches on its proposals and expect5 to submit
appropriateresdutscnstoAntwal conferen￿ in October 2021.
The Council approved a skills matrix in 2020 and an audit h35 been undertakento identify any gaps which C￿ te
ddressed through trustse recruitment and/ or devebpment. The Council has established a Nominati4Jns Committee
to oversee trustee recruilrnent in line with the skills matrix. When new Trustees are elected or appointed, a for
induction on the work of the ASs￿latIon and Tru5tee5' role5 and responsibilities is provided. The Council, either a5 a
whole or through its sub<ommittees. also receives ongoing briefirEs and training from senior rnarhagement
external advisors in key area5 such a5 risk management. safeguarding, data protection, fundraising financFI
management. Furthertrainingand devel(yfnent is providedto meetspeclficneeds andTru*es re￿1ve annual 1cm1￿e)
refres￿rtra)nIng0n healthand safety, equality and diversityand cW)er securityetc.
The Council has appointed designated lead Trustees for Health and Safety IS9uadron Leader D Gibson R4F).
SafeguardinglAir CommodoreGA Opie RAFI, and Wh'stleblowin8 IM5 F Barber).
Council Meètings
The powersof thecouncil aresetoutin the Royal Charter, Rules, and Byelaw5 wlicharesupplementeil bythestsndard
Regulations governing the Areas RegiorE. Brart￿s and Branch Clubs (collectively the 'Govemance Handbo)k'l. Ihe
Council may exerciseall powers conferred on it bythe Governan￿ Handknok3nd in accordance with the Charities Act
2011 and other applicab￿ legisbtion. The CourKI usually holdsfiveface-Fdce rneetingseachyear. although in 2020r(
held six meetings Ifive of which were held virtually) to re5porhd to the Challenges of COMt>19. The Council has *0
adopted a procedurefor makin8derisi0Th8eX-￿mmIttee. All ex-committee deosions are subjectto ratification atthe
nextcouncil meeting
CoMmitteeStr￿tUre
Throughout the year the work of the Council was supported by Committees. Each Committee has written tern￿ of
reference approved by the Council. Terms of referen￿ are reviewed at least every three years and will next t
reviewed in 2021. MemkErs of the committees are a cornbinatlon of Associatlon Trustees and personnel co-opted a5
determined bythe Council.
19

THE ROYALAIR FORCESA550CIATION
TRUSTEES. REPORTICONTINUEDI
YEARENDED31 DECEMBER2020
commlttsestr￿t￿eI(0nt1nuedj
Committee
Chair
Number of
membeys
Numberof
meetings
Finance and Inve*ment
Mr P Tagg
Fundraising and Communi¢atiOTk8
Mr CGoss
Branch and Membership
Mrs B Dennettstsnnard
io
Information
AVM M Neal
Welfare
Ms F Barber
Annual Conferen
Mr A Rees
Audit
Mrl Gawn
Remuneration
AVM J Cliffe
Committeesgenerally meet in advance of Councll meetlngs. with minLrtes of meetings being provided tothe Cotjncil.
together with any recommendation& In 2020 the Councd also agreed to establi5htwo newcommittees.. a Safe@J¥ding
Committee (to replace the previous Safeguarding W¢yk'n8 Grwpl and a NominatIor￿ Committee. The Association
currently seeking an independentchair forihe safeg￿4rdingCOMrn1ttee.
The Council isalso supported byad hocworkinggroupsortask and fini5hgrow5. All suchgroups havewritten tems of
referen￿WIth minutes and recommendations presented tothe Council. During 2020theCouncll establisheda COVI
19 Working Group Inowthe Counal Strate8yWorking Group) Comprisingthe Chairman and Vice-chairmanof Council,
President, Chair5 of the Welfare, Branch and Membership. Fundraising and Communication and InformatK)n
Committees and the Secretary General The Worklng Gr(xJp met weekty throughout 2020 and ex￿Cts to C(￿tInUe It)
meet everytwoweeks until Step4 ofthe Govemmenvs Roadmap outof COVID-19restricti<n5 ha5 beenimplernented.
Dele8ated Authorlty
The Council has a fomial schedule of matters speufically ￿Served for Its approval which cannot be delegated. Other
specifi¢ rnatters have been delegated to its Committees and Wor￿ng / Task and Finish Groups and these are cle
defined within therelevanttermsof refeIen￿. Day-t¢iday management of theA5$0ciationis delegated tothesecretsry
General and histeam and the Council reviews itsscheme of delegated authorityon an annual basis. Notwlthstandi
any delegation, the Council remainscolectivelyaccwntableforthe work of the As51xlation.
20

THE ROYAL AIR FORCESASSOCIATIThN
TRUSTEES, REPORTICONTINUEDI
YEARENDED31 DECEMBER2020
Branchesand Areas
Branches are separate organisatlons from the Association,. branch accounts are not consolKl3ted with those of the
Association. 8rand)esfundraiseon their own behalf and on behalf of the Association (the annual WingsAppeall.
Association provicksbranches with an annual rebatetosupport branch memtrRr5hip afbd wewareactivty.
Branches sharethe sameobjectiveand constitution astheA5s(Ki*on and, assuch. are IndivKlual charitiesin their own
rightand are required to registeras charities in accordancewith the relewdnt local jurisdictio
The Association has been workingwiththe ChartyCommis5x)n and branchesthrouthout2020to pr0vldegtjidance￿d
5upportto branchesto lrnprovetheir80vernan￿. Witheffectfrom I September2020, the Trustee5 approvedrewtsed
Byelaw5 and new Branch Regulations as part of this work and these will be subject to ratification atthe next Ann
Conferen￿, currentlyplanned foroctober 2021.
In response to a resdution at Conference 2019, the Asxscialion has been revEwi18 the administrative tier bthen
branches and the Council to ensure that its structures are fit and ready for the future and able to deliver the
Association's strategyto 2030. As a member-ledwelfare charity itis irnportsntthatall members can contribute to the
future direction of theAssociatic#) and C(￿$U1tation ona new structure was underway asthe pandemicarrved and the
countrywent into lockdcwn.
The consultation includedpropo&4lsto amend the Roy21 Charterand Rules, butthe* cwldnotbe progressedduethe
pandemic, which re5ukedinthe cancellationof the Area Conferences and the Annual Conferencein 2020.To addre
one of the keyissues identifled in thecurrentArea strurture, with effectfrom Iseptember 2020the C￿ncl rebalarttd
the existing fiveArea4 equalisiw asfar as possible the num1￿1 of branchesin each UK Area and combining into a sin
Area all branches outside the UK. The Council is a150 Still considering how tts implement a further 2019 Conferen
resolution to enfranchise the memtr*rship, in particularthose groupsS￿has setving personnel andthose onthe ￿￿traI
rolls, thatare not represented bythe curientbraneh delegate system.
Annual Conference
Although Annualconference couldnottake placein 202Clduetothepandemicandgovemment restrictions, the Counul
implementedan alternative, hybrid, arrarEementto rneetthe mlnimum govemance requrements. RSM UK Audit LLP
were re-electedas auditorsof the AsscKiation folowinga postal and emailvote. Air Marshal Sir Baz NorthKCB OBEM4
FAAeS was re-elected unopposed as Presidentand Mr PhilipTag6 was re-elected unoptx)sed asTreasurer.The re￿nS
bythe Chairman ofcouncil, Treasurer and SecretaryGeT*ral were presented VB a webinarand brancheswere prcfvkled
with an opportunityto raise questions both in advanceand durin8the presentation.The webinar recorcln& together
with all questions and answerswere made available forAssociationmember5.
The 2021 Annual Conference is planned for October. A5 part gf it5 contingency planntng,the Council 15 consultings
branchesto amend the Byelawsto allow, on atemptsrarybasls. branchesto be ableto vote on Conference re501utK￿5
by post or online in advarKe of Annual Conference. This Is desgned to enable all branches to participate in d￿1￿¢
making should attendance at large indoor gatherings contiwe to be restricted or branch delegates do not feel
comfortable attendin8afaCe-to-faceConferen￿.
21

THE ROYALAIR FORCESASSOCIATION
TRUSTEES. REPORTICONTINUEDI
YEARENDED31 DECEMBER2020
Subsldiarles
RAFATRAD Limitedisa whollyowned subsidoryof the A5￿)cIall0r4WhiChsellstommemorative item5 andmemorabliA
and undertakesfulfilmentactivityforthecharity. RAFATRAD knmited Is a companylimitedby shares incorporatsd urKkT
CompaniesAct2CO6.
Royal Air Forces Assooation Housing Limited (RAFA Housin81 is a wholly owned subsidiary of the Association. It 1%
community benefit50cY&ty registeredunderthe Co-operative and CommunityBenefitSocietiesAct 2014. regulated by
the FCA. RAFA Housiw isa registered provK4er of social housing regulated bythe Regulatorof Social Housin8 IforrrEr
known asthe Home5 and Communities Agencyl.
RAFA Kidz Limited isawhollyowned subsidiary company limited by shares incorporated underc0rnpaniesAct2Th￿. ti
operates pre-sclN)d nurserie5 in accordan￿ with the Early Years Found3tion Slage at RAF Odiham and wrap-wwTh
care at RAF Digby. RAFA Kidzone Limf(ed, a company limited byguaranree and registered charity, is a wholly 0￿ed
subsidiary of RAFA Kidz and operates a pre-sthool nursery and wrap-around care at RAFC Cranwell. Both RAFA ￿dZ
Limited and RAFA Kidzone Limited are registered with Otsted.
RAFA Club5 Limited and RAFAKidz Wng5 Limitedare both companies limited by sharesincorFx)ratÈd UnderCompa￿e5
Act 2006. RAFAKid2Wings Limited isa subsidiaryof RAFA Kith Limited. Neither RAFAClubsnor RAFA Kidz WirEs trayed
in 2020.
Remunèr*ion Polity
The Associationiscommittedto recruiting, retaining and develq)irgpe(plewith the ne￿$Sary5kills and knowledgelD
make a positive contributicn in helping delwer the organisatlon's oblectives Making effertive deci%ons in relatvjn to
remuneration and reward is congdered both centr31 and crucial to the continued s￿￿SS of the AssDciatiorfs overal
aims. The Association's Remuneration Policy centres on the following principles..
Reward employees uslng prO￿Se5thatare fair, equitable, and transparent.
Aimto paycompetitivelyagainst ourrelevdntcomparators in the voluntary sector.
Enhance the organisati¢y's competitive p051tioning by promoting a totsl reward approach. recognising thar
other a5perts olthe employment package le.g. benefits and developmentopp(xtunities aswell as theintringc
mDral value of working fora charity) are alsovaluable to employees.
Remurieralion ReviewandAnnual PayAward
The Council, through the ReMU￿ratIOn Committee. compo*d of threeTrustee& both sets pay and conditionsforal
Association employees. including the Senior management team. and reviews the Remunerati(M Policy annual￿,
ensuring th3tthe Principles outlined above are adhe￿d to and remainappropriatewithin thewidereconomiccontexl
Employee remuneration is reMe￿EdannUally inAugustandany thange5 are implemented from the following ljanuary.
Salary benchmarkirE is undertaken using dats fromthe Officefor National Statlstlcs IONS) and surveys byCrorera￿l
XpertHR. The Assouation has intrOdU￿d the LIVI￿ Wageon a discretionarybasis and voluntarily recc8ni5esthe GMB
trade union for couective barBainirgfor5tatutoryactivity, induding pav.
22

THE ROYALAIR FORCESASSOCIATION
TRUSTEES. REPORT ICONMNUEDI
YEARENDED31 DECEMBER2020
Remuneratlon Reviewand Annual PayAward (continued)
Employees earningover£60,CK)O perannum are 5hownat note 10 of the accounts. This include5the senlor
rnanagementtearn which comptised eight eMplo￿e5 during 2020.. SeCretaryGej￿ra1, Directorof Branch and
Memberslip Operations, Director of Welfareand Policy, Directorof Marketing, Fundrai%ngand Trading,Chlef
Finance Off1cer, Chief Information offi￿r, Chief PeoFAe Officerand Group Company Secretary. With effectfrom I
January 2021there is no longer a Chief Peopleofficer role.
Thi5 remuneration poltyand rewew appliesto Assoc+ation emploiEe5 on￿. Employeesof subsidiJycornpanie5 are
subjectto separate arrangementsset bythe respective Boards of Directors.
Future outloc4(
The Association has risen tothè challergeof fulfill￿16 emerg￿16 andchan8ingwelfareneed5whibtcontiniingto man
the ifflpact of the COVID-19 Pandem￿ on revenue generation of the Association and its subsidiaries into 2021,
Particularly in relationto our abilityto fundraise. Assuch. the charity and itSsubsidiarie5 will continue to revw h)w
to best delivertheir muth-needed Servi￿5. The Courtil considers that the action5 taken in 2020. combined with the
past prudentapproach to accumulating inve5trnentsand cashbacked unrestrirtedreserves, place5 the Asscoation in a
strong position to notonlysurvivethe parKlemic, butto continuestoaffectthe widerRAFcommunty.
Trustees'respcmsibilitiesin relation to financtal statements
The Trustees are responsi1￿e for preparin8the Tru5tee5' Report and the financial statements in accordance with
applicable law and Unitsd Kingdom Accounting Stand3rds. The law applicable to charities in England and Wales
Scotland and Northern Ireland requiresthe Trusteesto prepare fina￿43[ statement5 for eaehfinancial year, which gve
a true and fair viewof the Association and thegroup, and of the incomin8re￿u￿ceS and applicaticn of r￿oUrceS of the
Association and the gr(xJp forthatperiad. In prep3ringthese finarKBI statsmert5, the Trustees are requiredto..
Selectsuitable accountlng policiesand thenapplythem consistently.
Observethe methcds and principle5 inthe Charities Statementof RecomrnendedPrartlce.
Make judgmentsand estimatesthatare reaS(nab￿ and prudent.
stste whether applica￿e accounting standards have been followed, subjert to any material departyres
disc105ed and explained in the finartial statements.
Prepare the financial statements on the going concem basis unless it is inappropr14￿ to presume that the
Association will continue in business.
The Trustees are reyonsi￿e forkeeping properactountlng records thatdisckjsewith rea50naL4e accuracyatanytine
the financial positionof the Association and the groupand enablethem to ensurethatthe financial statements conp
with the CharitiesArt2011,theCharity IAccountsand Reports) Regulations 2008,The Charlties andTrustee Invesfftnt
Iscotlandl Act2005,the CharitiesAccounts Iscotlandl Regulations 2(06and the provisior6 of the Royal Charter.
are also responsible forsafeguardirEthe assetsof the Associationand thegroup and hencefortaking reasonablesteps
forthe preventionand detection of fraud and other irregularstie5.
23

THE ROYAL AIR FORCESA550CWTlCh
TRUSTEES. REPORTICONTINUEDI
YEARENDED310ECEMBER2020
Trustees, respL￿sibIlIt[eSin relaticntofinanaalstatements Icontinuedl
In so far as the Trusteesareaware..
There is rho releydntauditinformationof whichthe Assoaaticm's auditoris unaware,. and
The Trustee5 have taken all step5 that they ought to have taken to make themselve5 aware of any relevdnt
auditinformatron and to establish thatthe auditorisaware of thatinformatiorn
The Council has given due regard to the increased pressure on income streams brought about by the COVID-19
pandemic and have Cc￿clUded thatthe positive levelofgeneral reserves, a healthy cashand investments balan￿,the
benefitof Government measuresand supportas well as the continued Sup￿rtOf its regularcontrilyjtors, mearsthe
going concernbasis remains appropriatefor the prep3ration of the5efinancial ststements.
Thls reportwas approvedbythèTrustees on -3 •-
and 518ned on its behalf by..
Air Vi
Chair
BOBE
of the Co
ncil
24

THEROYALAIRFORCESASSOCIATION
INDEPENDENT AUDITOR'S REPORTTO THETRUSTEES OFTHE ROYALAIR FORCESASS(KIAMI)N
Oprnion
We have audited the financial statements of the Royal Atr FOr￿sASs0ClatIon Ithe'parentcharity'l and it5 subsidiarie5
Ithe'group'l for the year ended 31 December 2020 which comprise the Group and Association Statementof FIna￿J
Activities. the Consolidatedand A%sociatIc￿ Balance SFEets,the Consolidated andA5SCKk?tion Ststements of Cash Aoy
and notes to the finanaal statements, indudng a summary of significant accounting pdicies The finarKial reP￿tirE
framework that has been applied in their preparallon Is applicable law and United Kingdom Accounting StandJd
Including FRS 102'The Financial Retxjrting Stand¥d appllcable in the UK and Republic of Ireland" (United KingdLKn
Generally Accepted Accounting Practi￿1.
In our opinion thefinancial statements..
give a true and falrviewof the state of the group'sand parentcharity'saffairs as at 31 December 2020 and ofd
group's and parentcharitrf5 incomingre50urcesand applicationof resourcesforthe yearthenended,.
have been properly prepared in accordancewith UnitedKingd(xn GenerallyAccepted Accounting PrKtice; and
have been prepared in accordance with the requirementsof the Charities and Trustee Investment IkotlarK41 Act
2005, re8ulatlc￿$6 and8 of theCharitiesAccrAJnts IScotlandlRegulalions 2[￿6{as amerKledl andthe ChartssAtt
2011.
Basis for oplnion
We have been appolntedauditors undersection 44llllcl of the Charities and Trustee InvestTnentlScotlèndl Act2￿5
and under sertion 151of the Charitie5Act2011 and rep￿tin attordarKewith regulations made underth05eActs.
We condurted our audit in accorthn￿ with International Standards on Audking IUKI IISAS IUKII and applicable law.
Our respon5ilxlities underthose stsndards are further described in the Audtorfs responsibilities for the audit of the
financial ststementssectionofourreFort. We are independentofthe groupand parentcharty in accordancewith the
ethical requirements that are relevant to our audit of the financial statement5 in the UK. Including the F Rc's EthKal
Standard and we have fulfilled our other ethical respon5iblities in aCC￿dance with these requirements. We believe
that the audit evidencewe haveobtained issufficient and apprc4)rialeto providè a b3slsforouropinicn.
Conclusionsrelatingtogoingconcern
In auditingthe financial statements, we haveconcludedthatthe trustees, use of the gO1￿COnCern basis Qf accounting
in the preparationofthe financial staternents 15 appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events
¢ondlt(ons that, individually or tollectively. may cast significant doubt on the 8roup's or parent charity's ability
Continue as agolngconcernfor a periodof at leasttwelve monthsfrom when the financial statements are authortsed
for issue.
Our responsibilities and the resp)nsibilitiesof the trustee5 with re5pectto go[ng¢on￿rnare described in the re￿rt
sections of this report.
other information
The other informationcompisesthe information included in the annval rep(Kt otherthan the financial statements and
our auditor's rep)rtthereon.The trusteesare responsible fortheother information containedwithin theannual reporL
Our opinion on the finanaal statements does not cover the other informati(n and. we do not express any fom of
a55urance c(ndusion thereon.
Our re5P(YLsibilityisto read theother1nf￿Mation and, in doingso. consKler whether the otherinformation 15 materia
inconsistenlwith the financial statements ()r our kno￿edgeobtalned in the course of the auditor otherwise appear5
to be materially misstated. If we identify such material incorsistencie5 or apparent material misstatements, ￿ we
required to determine whether there is a material misstatement in the financial siatements themselves. If, based c
the work we have perforrned, we condude that there is a material misstatement of this other infomiatiorn we are
required to rep)rtthatfact.
We have nothingto reFK)rt in this regard.
25

THE ROYALAIR FORCESASSOCIATION
INDEPENDENT AUDITOWS REPORTTO THETRUSTEES OFTHE ROYALAIR FORCESASSOCIATION (continued)
Mattersonwhith we are requiredto reportbyexception
We have nothing to repcrt in ressRct of the following matters where the Charities Accounts (Scotlandl Regulati￿5
2006 lasamendedl and thecharities Act 2011 require usto reporttoyou if, in our opinion..
the information given in the finarbcial statements is inconsistent in any rnaterial respectwith the trustees, annua
report,. or
proper and suffKientaccountin8 reccrd5 havenot been kept by the parentcharity.or
the parentcharityfinancial ststement5 are not in agreementwith the accounting rècords and returns,. or
we have not received all the inforrnationand explanation5 we requirefctrrour audit.
Responsibilltiesof trustees
Asexplained more fullyin the Statementof Trustees, Responsitil¢tie5 setouton page 23,the trustee5 are re5ponsblE
forthe preparationof the financial ststements and for beirgsatisfied thattheygive 3 true and fair view, and for5uth
internal contrd asthe trusteesdetermine is necessaryto enable the preparati(n of financial statementsthatare free
from material misstatement, whetherdueto fraud or error.
In preparirgthe financial statements.the trusteesare responsibleforassessingthe group and parent¢harity's abilty
to continueas agoingconcern,disclosin& as applicable, matter5 related to going concem and usifEthe going con￿rn
basis tsf accounting unless the truste￿ eitherintend to liquidatethe group orparentcharityorto cease operdtittA or
have no realistic alternative butto do so.
Audttor's reSpOr￿]bilItIESfortheaudit of the financialstatements
Our objective5 are to obtain reasonable assurance about whetherthe fina￿￿1 statements as a whole are free frorn
material mi5Staternent. whether due to fraud or error, and to issue an auditorfs report that includes our opinK)n.
Reasonable a$surar￿e is a high level of aSsU￿nce but is not a guarantee that an audit conducted in accordanTr with
ISAS IUKI will always detert a material misstaternent when it exists. Misststements can arise from fraud or error
are considered material if, indwiduallyor intheaggregate, theycould reasonably ￿ expected tolnflle￿e the econcm
decisions of userstakenon the basisof thesefinèncial statements.
The extenttowhlchthe audltwas consldered Capable of deterting irregularities, includingfraud
IrregtJlaritie5 are instanTrs of non-complrdnce with laws and regulations. The objectives of our audit are to obtsin
sufficient appropriate auditevidenceregarding Complian￿ with law5 and regulations that have a directeffecton th2
determination of material amounts and disclosures in the financial 5tatement5. to perform audit procedures to h21p
identify instancesof non-compliancewith other laws and regulationsthat may have a material effecton the financi41
ststements, and to respond appropriately to identlfied or suspected non-complian￿ wlth laws and regulathy
identified duringthe audit.
In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the
financial statements due to fraud, to obtain sufficient approprptè èudit eviden￿ regarding the a$5e55ed risks of
material misstatement due to fraud through designing and implementfng appropriate responses and to reSp￿d
appropriately to fraud orsuspected fraud identifEdduringthe audrt.
However, it is the primary responsibility of mana8ement, with the oversight of those charged with governance, tt)
ensure thatthe entity's ot*rations are¢0nd￿ted in aCcOrd3n￿WIth the provisonsof laws and regulation5 andfor tt
prevention and detedionof fraud.
26

THE ROYALAIR FORCESASSOCIATION
INDEPENDENT AUDITOR'S REPORTTOTHETRUSTEES OF THE ROYALAIR FoRCEsA55￿ IATION IcontSnuedl
In identifyingand assessing risksof material misstatementin respectof irregularities, incI￿Y1rgfraVd, the gro￿ auth
engagementteam..
obtained an understanding of the natureof the sector, includingthe le8al and re8ulatoryfraTheworksthattt
group and parent charStable company operates in and how the group and parent charitable company are
complyingwith the legal and regulatoryframeworks..
inquired of management. and those chargedwith govemance,abouttheirown identificationand aSses￿nt
of the risks of irregularities. incI￿1ng any known actual, suspected oralleged instan￿5 of fraud,.
discussed matters about non-compliarKe with laws and regulations and how fraud might occur incluclng
assessment of howand wherethe financialstatements may be susceptible tofraud.
As a resultof these procedures we consiyer the m05tsignificant law5 and re8ulationsthathave a direct impact cnthe
linancial statements are FRS 102, Charities SORP IFRS 1021, Companie5 Aci 2006, Chartie5 and Trustee Inve5kntnt
(Scotlandl Act 2005. regulations 6 and 8 of the Charities Accounts (Scotlandl Regulations 20(￿ las amended). the
Charities Act 2011. the parent charitable cornpanrfs governing document and tax legislation. We performed aud
proceduresto detectnon-¢ompliance5 which rnay have a materlal impact on the financial staternentswhich inctuded
reviewlng thefinan¢lal ststements includingtheTrvstees' Rew)rt. remain1￿ alert to newor uNsual transactionsthrh
may net be in accordan￿ with the governing documents, inspectyng corresponderte wlth local tsx authoriti￿ aMI
evaluating advice receivedfrom internavexternal advisors.
The mostsigrbificant laws and re8ulation5that havean indirect impartonthefinancial statements are Keepire Chihjren
Safe in Edutation undersection 175 ofthe EducationAct 2002,the Childcare Att2(K)6,the UK General Data Protectp)n
Regulation IUK GDPRI, Health and Safety at WorkAct 1974and the Regulatorof Social Housing Regulatorystsndards
Iboth Economicand Consumerstsndardsl. We performed aUdttpr(￿e￿jreSto inquire ofwhether the groupand p&ent
charity are in compliance with these law and re8ulatiors and inspetted Corresponden￿ with licensing or regulabjy
uthoritie5.
The group auditerEzgementtearn identified the riskof management overrideof controls andcapital andMalntsrw￿e
activities. as the area where the financial statements were most susceptible to material misstatement due to fraud.
Audit procedLJres performed ind￿4ed but were not limited to testing rn3nual journal entries and other adjustments,
evaluating the business rationale in relation to significant, and unusual transaction5 and iransactions entered inb)
outside the normal of bvsiress, challerEing judgementsand estimates.
Afurther description ofourresponsibiif(lesf￿theaudIt0f thefinancial ststements is locatedonthe Financial Reportng
Councll'sweb%te at http.'//wNw.frC.or8.￿CIaLK￿ItDrSre5pOnSi￿NIitIes. Thls descripticn fornis partof ouraud'torfs repcrt
27

THEROYALAIRFORCESAssoaATION
INDEPENDENT AUDITOWS REPORTTO THETRUSTEES OFTHE ROYALAIRF0RCESASS￿IATION {COntin￿dI
Use of our report
This report is made solely to the charity'strustees, as a body, in accOrdan￿with section 44llllcl of the Charitps
Trustee Investment (Scotlandl Act 2￿5, and reguktion 10 of the Charities Accounts (Scotlandl Regulations 2(m￿ las
amended) and the Charitie5 Act 2011. Our audit work has been undertaken so that we might state to the charitrfs
tru5teesthose matter5 we are required to state tothem in an auditor's reportand for no other purpose.To the ful￿st
extent permitted by law, we do not acceptor assume resp¢J)sibilityto anyone otherthan the charityand itstrustee5
as a body,for our auditworl forthi5 repK)rL or for the opiThonswe haveformed.
RSM UK AuditLLP
Statutory Auditor
St Philips Point
Ternple Row
Birmingham
B2 SAF
Date
21 st September 2021
RSM UKAudit LLP iseligibleto actas an auditor in termsof section 1212 of the CompaniesAct2006
28

THE ROYAL AIR FORCESASSOCIATION
GROUPSTATEMENTOF FINANCIALACTllllTIES
FOR THE YEARENDED31 DECEMBER2020
Notes Unrestrfrted
Funds
Restricted
Funds
Total
Total
2020
2019
£'ooo
£'ooo
£'ooo
E'OOO
INCOME:
Donatlonsand Legaties
Donations- assets gifted from clc6ed
branches
Donation in kind on acquisition
5.383
1,271
6,654
7,956
30
19511
19511
1,375
128
Charitable Artivities:
2,786
3,089
5,875
4.226
otherTradingActivitie5:
Trading incorne
Grand Drawand other fundrai%in8
income
302
302
418
1,178
1,178
I,iio
lftvestmentlntt>me
864
864
1,023
Total Income
9.562
4,360
13,922
16,236
EXPENDITURE:
Cost of Raising Funds
2,140
2.140
4,212
Charitable Activltles:
Residential & Re5Plte Care Home
Friendship& Welfaresupport
Grants
2.878
7,640
65
34
2,912
10.967
151
3,756
7,656
308
3,327
86
Other Supportcosts
790
794
876
Other Expenditwe..
Interest Paid on Branch Depc*sits
Intere5ton Defined Benefit Pension
17
17
iioi
Share of the reducti(￿ in valueof the
jointventure. dueto the distributionof
the jointventure funds. as intended
14
252
252
409
Total Expenditure
13,789
3,451
17,240
17,209
29

THE ROYAL AIRFORCESASSOCiATION
GROUPSTATEMENTOF FINANCIALACTIVITIES (cont1n￿d)
FOR THE YEARENDED 31 DECEMBER 2020
Notes Unrestrfcted
Restrirted
Total
Total
Funds
£'ooo
Funds
£'ooo
2020
2019
£'ooo
£'ooo
Net gain50n investmentassets
141bl
27
27
3,010
Net lexpeThlitureifincome
14.2001
909
13.2911
2.037
Gr05Stransfers betww fund5
127
11271
Net lexpendlturel￿nt￿￿e
14,0731
782
13.2911
2,037
Other reco8Thsed1055es:
Actvarial1055es on defirEd berEffit
pension scheme
li
14271
14271
15541
Net movementin funds
145001
782
13.7181
1.483
Reconciliatlonof Funds
Total Funds Brought Forward
33,954
1,769
35,723
34,240
Total Funds Carried Forward
All Income and expenditLre derlve from continuingactivities.
The Group Statementof Finanual Activitie5 indude5 all gain5 and losses reccgnlsed in the year.
30

THE ROYALAIR FORCES ASSOCIATION
AS50CIA710N STATEMENTOF FINANCIAL ACnVITIES
FOR THEYEARENDED31 DECEMBER2020
Notes Unrestrfcted
Restrirted
Total
Total
2019
Funds
Funds
2020
£'ooo
£'ooo
£'ooo
£'ooo
INCOME:
Donati0Th5 and Legacie5
Donations- assetsgifted from clased
branches
5.383
1,163
6.546
8,047
30
19511
19511
1.375
CharltableArtlvltks:
1,375
3,089
4,464
3,721
Other TradingArtivities:
Grand Drawand other fundraising
income
1,178
1,178
I,iio
In￿StmentIncOme
864
864
1,023
Total Income
7,849
4.252
12,101
15276
EXPENDITURE
Cost of Raising Fund5
1,765
1,765
3,778
Charitable Activitie5:
Residential & RespiteCareHome
Welfare Surport
Grant5
2,757
6,055
65
34
2,791
9.382
151
3.573
7,335
308
3,327
86
Other Supportcosts
794
798
876
Other Empenditwe:
Interest Paid on Branch DeEK)5its
Intereston Defined BenefitPerGion
Liabilitie5
17
17
iioi
Total EKpendlture
11,460
3,451
14,911
IS￿62
31

THE ROYALAIRFORCESASSOCIATION
ASSOCIATION STATEMENTOF FINANax ACTIVITIES Icontrnuedl
FORTHEYEARENDED310ECEMBER2020
Notes Unrestricted
Re5trtctÈd
Total
Total
2019
£'ooo
Funds
£'ooo
Funds
£'ooo
2020
£'ooo
Netgainson investmentassets
141bl
27
27
3,010
Net lexperKlituYelfincome
13.5841
801
12,7831
2.424
Grosstransfers betweenfunds
127
11271
Net lexpernllturellincome
13,4571
674
12.7831
2,424
Other reco8Thsedlosses:
Actuarial losses on definedberEfit
pension scheme
li
14271
14271
15541
Net movementin funds
13,8841
674
13,2101
1,870
Reconclllatlon of Funds
Total Funds Brought Forward
33,212
1,769
34,981
33,111
Total Fundscarrled Forward
43
All income and eX￿ndItUrederive fr(xN corrtinuingactivitie5.
The Association Statementof Financial ACtIv￿e5 indudes all 8ains and losses reccEnisedin the year.
32

THE ROYAL AIRFORCE5ASSOCIATION
CONS0LIDATEDANDASSOCIAT￿N BALANCE5HEETS
AT31 DECEMBER2020
Notes
Group
2020
Association
2019
2020
2019
£'ooo
£'ooo
£'ooo
£'ooo
Fixed assets:
Intangible assets
Tangible assets-
Properties
Equipmentand furnitwe
12
1,689
1.689
13
6,229
689
6,376
2.200
5.843
522
5,988
2,054
13
8,607
8,576
8,054
8.042
Investments:
InvestrnentS
14
22,812
26,782
22,812
26,530
Programme related investments
loan to branchès
15
131
132
131
132
Totalfixed assets
31.550
35.490
30,997
34,704
Current assets:
Assets held for resale
Stocks
16
580
1.415
335
580
1,415
435
Debtors
Cash at bank and in hand
17
402
619
1,252
3,886
1,073
1,926
4.382
2,344
Totalcurrent assets
5,799
4,713
5.718
4,422
Current liabilities:
Creditors.. amountsfalllt)gdue wtthlnone
year
18
14,2351
13.7671
14,1141
13,7151
Net currentassets
1.564
33,114
946
1,604
32,601
707
Totalassets leSS￿rrent Irabilities
36.436
35,411
Creditors.. amounts falling due afterrnore
than one year
19
12791
12831
Netassets emduding pènsion scheme
32.835
36,153
32,601
35,411
Defined benefitpensionschemeliability
li
18301
14301
18301
14301
Net assetsindudingpen5ion5theme
33

THE ROYALAIR FORCES ASSOCIATION
CONSOLIDATED ANDASSOCIATION BALANCE5HEETS Icontit)uedl
AT 31 DECEMBER2020
Notes
Group
2020
£'ooo
Assod*ion
2020
£'ooo
2019
£'ooo
2019
£'ooo
Funds:
Income fund5:
Restricted funds
21
2,551
1.769
2,443
1,769
Unrestricied funds..
Designated funds
22
18,769
20.335
18,769
20,335
General funds
11,517
18301
13,688
14301
11.389
18301
13.307
14301
Pension scheme defKit
li
Netgeneral funds
10,687
13,258
10,559
12,877
Non-charitsble fund5
361
Total funds
32.005
35,723
31,771
34,981
The financial statements on pa8es 29 to 67 were approved and authorised for issue by the Trustees on
and signedon theirbehalf by-
Airvi
Chair
arshalj Cli
of the Coundl
BOBE
34

THE ROYAL AIR FORCE5ASSOCIATIChN
CONSOLIDATEDANDASSOCIATION STATEMENTSOF CASHFLOWS
FOR THEYEARENDED31 DECEMBER2020
Notes
Group
2020
Association
2020
2019
2019
£'o
£'ooo
£'ooo
£'ooo
Cashflowsfrom operatingactivities
24
12,1581
12.2411
12,2951
12,3091
Cashflowsfrom investin8activities
Investrnent Income
861
1,017
861
1,017
Interest receiyable
Interest payable
Receiptof Kaupthingsingerand
Friedlandermonies
Paymentsto acquire intangible fixed
assets
1171
io
1171
io
13
13
14611
1861
13
13131
3,635
14611
1171
13
Paymentsto acquiretangiblefixed assets
Receiptsfrom disp)sals of fixedassets
Paymentsto acquireinvestments
Receiptsfrom disposals of investments
Cash funds transfer on acquistion
19831
832
11,0181
1,706
154
19201
832
13131
3,625
11,0181
1,706
Net cash provhded bylnvestlngactlvltles
3,648
1,724
3,707
1,633
Cagh flowsfrom flnanclng actlvitles
Decrease in loans to branche5
Decrease in deposits by branches
547
268
547
268
Net cash from financingartivities
548
275
548
275
Change incash and cash equivalentsin
the year
2,038
12421
1,960
14011
Cash arhd cash equivalentsatthe
be8innÉngof the year
2,344
2,586
1.926
2,327
Cashand cash equlvalentsat theend of
the year
25
4,382
2,344
3.886
1,926
35

THE ROYALAIR FORCESA5SOCIATFON
NOTESTO THE FINANCIALSTATEMENTS
YEARENDED31 DECEMBER2020
l. Critical acwuntingestimatesand areasofjud8ement
Estimates and judgements are contTnually evaluatedand arebased onhistorical eXperien￿aThd otherfactC￿$, indudir
expectation5 of futvre events that are believed to be reasonable under the circumstan￿& There are no Crit￿31
a¢countingestimate5 and areasof jud8emertto note.
2. PrlnclpalAccountlng Polldes
General Informatlon
The Royal Air Forces ASs￿latIon is inCor￿rated by Royal Charterand is a regISte￿d charFty atthe Charttycomm￿s10n
in England and Wales Icharty number 2266861 andatthe Scottish Charity Reg￿ator(05CR> inscotland ltharity nun4Jer
SC0376731.
The address of thecharltvs registered0ffi￿and prinapalplace of busirEs51sAtla5 Hou*, 41 Wembley Road, Leicester
LE3 IUT. The group consists of the Association and its subsidiaries a5 set out in note 4. The nature of the grou￿$
operations aresetoutln the Trustees. ReFOrt.
Basis of preparation
The financial Statements have been prepared underihe historical costconvention modified to includethe revèluatic*)
of freehold property and to include investment properties at fair value, and in accordance with applicable United
Kingdom AccountingStandard5. The financial statements have been prepared in accordan￿ with Accountiw
Reporting by Charities.. Statement of ReCOmme￿ed Practlce applicable to charities prepari￿ their atcothts in
accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland. the
Financial Rep(Ytirg Standard applicable in the United Klfgdom and Republic of Ireland induding the adoption of the
amendments issued in December 2017 IFRS1021. the Charities Act 2011, the Charitie5 and Trustee InvestnEnt
(Scotlandl Act2005 and the CharitiesAccwnts {Sco￿and) Regulations 2￿)6(aS amended) and UK Generally Acceptsd
AccountirE practi￿ as Itappliesfrom l January 2015.
The flnancial statements have been prèpared to give a 'true and fair, view and have departed from the Charilies
(Accounts and Reports) Regdations 20CB onlytothe extent requiredto provide a'true and fair'view.This deparknre
ha5 involved followin8Accountin8and Rew>rting byCharr(ies preparingtheiraccounts in acc(xdancewiththe Fina)oa
Reporting Standard applical￿e in the UK and Republic of Ireland IFRS 1021 issued on 16 July 2014 rather than the
Accountirg and Reporting by Charitie5.' Statement of Recommended Praaice effective from l April 2005 which has
since beenWithdra¥￿.
The fi'nancial ststements of the Association comprise the fund5 of the A550Clation but not the branches whith are
separate registered charlties and do not sharecommon Trustees with the Association.
The Royal Air Forces Association meets the definition of a public beneflt endty under FRS 102 and have theref￿e
applied the relevantpublicbenefitrequirements of FRS 102.
Monetsry amount5 in the financial Statements are rounded to the nearest £l.000. The flnancial statements we
presented in 5terlingwhich 15 alsothe functionalcurrencyof the Asxsciats'on.
Goin8Concern
The Council acknowledges that the unprecedented level of uncertainty caused by COVID-19 and rapidly Cha￿ng
circuMstan￿g mean that the judgernerts and estimates required by management are more ¢hallerEing th￿ uNkr
normal circumstances.
36

THE ROYALAIR FORCESASSOCIATION
NOTESTO THE FINANCIALSTATEMENTS
YEAR ENDED 31 DECEMBER2020
2. PrinapalAccountingPolitie5lcontrnuÈdJ
G0ingCon￿rn Icontinuedl
As set out In the Trustees ReKx)rt on page 24, the Coundl ha5 gSven due regard to the increased p￿ssure on incorre
streams broughtaboutbythe p3ndernic and havecondUt￿dthatthe positive level of general reserves, a healthy cash
and investments balance, the benefit gf Govemment measures and support as well as the continued 5UPP(Yt of rf5
regular contritxjtors, means the going concem basis remains approwiate for the preparaticm of these financk?I
Statements.
Based on the Association's forecasts, the Council has adopted the going concem basis In preparing the Financkil
Statements. The Trustees have made this asse5%nent after conyderation of the AS5(￿￿tiOn,S eash flows and related
assumptionsand in accordancewith the Guidance publi%hed by the UK FinancialRepcftingCouncil.
Consolidation
The group Statement of Financial Activities and group Balance Sheet consolidale the financial statements of the
Association and its subsidiarEs. The results of the subsidiariesare consolidated on a line by line basis. Intra grojp
transaction5. balances and unrealisedgains are eliminated on cong)lidation. Where ne￿Ssary, adjustmentsare m
to the financial statements of subsidiaries to bring the accountin8 poliaes used into line wlth those used by other
membersofthe Group.
Joint Ventures
Entitie5 in which the group holds an interest. and which are jointly contrdled by the group and one or more other
ventures under a contractual arrangement are treated as joint venture5. In the group financial statements. joint
ventures areaccounted forusingthe equitymethod. Under the equity methryl of accounti￿. an equity investment
initially recognised at transaction price lincluding transaction c05ts1 and is 5ub5equently adjusted to reflect the
investors, shareof the profitor loss, othercomwehensive incomeand equity of thejointventure.
Fund accounting
General fundsare unrestrirted fund5whichare availableforuse atthe dlscretlonofthe Tru5tee5 in furtheran￿0fthe
objèciivèsof the Associationand which have notbeendesEnated forotherpurp)ses.
Designated funds are UnreStr￿tedl￿ndsIhat have beensetaside bytheTrusteesforpartlcularpurposes. Thesefijnds
are reviewedannually.
Restricted fundsare funds which are to be used in accordance with specrfic restrictioTh% imposed by doTh)rs or
have been raised by the A$50ciation for particular purposes. Eypenditwe is charged to the Statement of Finanaa
Activities when Incur￿d.
Income
All income is ind￿led inthe StstementOI Fiianaal Activibe5 ISOFAI when theA550ciation hasentitlementtothefun
any performancecondtionsattachedto the incomehave been met, it is probaEAethatthe incomewill be receivedand
the amountcan be measured reliably.The following5peuficpolioes areapplied to partitularCateg￿1es0f inccme.
Income inthe form of donationsand subscripilcY)s is Inclu(kd whenreceiVa￿e. Legaaesare accountedforas SO￿ a
entitlement, probabillty and a monetsry valije can be established.The sumsdue under the contraLtfrgm the MOD i5
included as intcme in the perK)d itlsearned.
37

THE ROYAL AIR FORCESASSOCIAnON
NOTESTOTHE FINANCIALSTATEMENTS
YEAR ENDE0310ECEMBER2020
PrlnclpalAccountlngPolides{continuedl
Income Icontinuel
Fundraising income is included in inccthe in the period in whith the Associati￿ beconRs entitled to receipt. Traling
income is recognisedas earned.
Investment income 15 iriclu(kd when receiwdble.
Income from charitable activities 15 included in income in the period in which the Association becomes entitled
receipt.
Government grants are recognised at the fair value of the a55et received or receivable when there is reasona)
assurance thatthe grantcorKlitionswill be metand the grantswill be received.
A grant that 5pecifie5 performance conditions is reeognised in income when the perfttman￿ Conditiot￿ are met
Where agrantdoe5 notspecifyperforrnanceconditions itis recognised in income when the proceedsare recewed or
receivaE4e.A grant re￿lVedbefcrethe recognition criteria aresatisfiedis recognised a5 a liability.
Expenditure
All expenditureisaccounted foron an accruals basisas 3 liability is incurred orwhen the Association isdeemedto hwe
a legal or constructive obligation which will result in a probable transfer Of economic benefits. Expenditure has been
classified underheadings thataggregateall costs rebtedtothe category.
Costs of ¥aisin8 funds include fun(traisingtradin8 costs and investment managementcosts. These costs are reg￿￿
as necessarytogenerate fundsthatare neededtofinancecharitable activities.
Charitable actlvities expeNJlture enables the Association to meet it5 charitsble alms and objettives and include both
directand Supp￿tc0sts relatingtothe activity.
support costs, which include the secretariat, flnance. information techndogy and human resources, have teen
Ilocated to costof raisingfunds and charitsble activities on the mostappropriate basls. Secretariatand financecosts
have been allocated on the basis of time spent. Information technology costs have been allocated on the basts of
equipment usage. Human Resourcecost5 have been allocatedon the basisof staff number5.
Grants
Grants are accountedfor when either the recipienthasa reasonable expectstion thattheywill receweagrantor then
theTrustees havea8reed to pay the grantwithoutcond'tiorL
Intanglble flxed assets
Intangible assets are Initial￿ recorckd atcost and subsequentlymeasured atcost netof accurnulated amortisation and
any impèirmentloss. AmoTtisation is probided for onall intangibleassetsat rates calculated to write off the costof e
a5setle55 its residualvalue evenly over it5 expected useful economiclives as follows:
. Softwwe
over 15 years
Impairmentrevrews are carried OutWhe￿ the¥e are indicationsthat recoverableamounts of intangblefixed assets we
belowtheir carryi￿values.
Shortfalls between the carrying value of intangible fixed assets and their recoverable amounts are recognised
impalrmentlosses in the Statementof Financial Activities.
38

THE ROYALAIR FORCESA550CIATION
NOTESTO THE FINANCIALSTATEMENT5
YEARENDED31 DECEMBER2020
Princlpal AccountlngPoli(ies Itontlnuedl
Tan8iblefixed35set5
Tangible fixed assets are initially recorded atcostand subsequently measured at cost or valuation net of depreciation
and any impairmentloss. The Associationand each sutsidiary will capitalise items overthe valueof £500. Depreciation
is provided for on all tangible fixed asset5 at rates calculated to write each asset down to its estimated Val￿ even
over itsexpetteduse￿l ecorL)mic lives a5follow5-.
Freehold proFerties
Short ka*hold propertEs
- Corypuier equipment
Other equiprrEnt and furniture
Motor vehicles
2%on cost
over the term50f the leases
25% on c05t
between 15%and 25%on net book value
25% on netbookvalueloverls years
Impairment reviews are carried out where there are indications that recoverable amounts of fixed assets are
their carryir6values.
Shortfalls between theCarryl￿V2Iue of fixedassetsand theirrecoVerdb￿ am(AJnlsare recognised asimpairmentk)s*s
in the Statementof FinanclalActivities.
Revaluatlonof Propertles
Propertieswhosefairvaluecanbe me35uredreliètAyare heldundertherevaluationmodel andare carried ata revahjed
amount, beingtheirfairvalue atthe date of valuation lessanysubsequentacctwnulated depreciation and subseqwnt
accumulated impairrnent105ses. The fairvalue of the land and buildings is usually considered to be their marketvdue.
Revaluation gains and lossesare reccEni%edin Other Gainsand Losses in the Statementof FinancKIl Actimties.
Investments
Long term Investments areclasslfiedas fixed assets. Short-term investments are classified ascurrentassets.
Listed investments are stated at fair value at the balance sheet date. Unlisted irivestments are stated at cost less
impairment at the bèlance sheèt date. Both realised and unrealised gains and1955es a￿ shown in the StatenEnt Of
Financial Activltles.The faIrval￿ of the Investmenisquotedon a recognisedstockexchange isihe quoted bid pri￿.
InvestmentproFertsesareinitially measured at cosland sUbSequen￿V measured atfairvalue whilsta reliable meagjre
of fair value is available without undue cost or effort. Changes In fair value in gains/losse5 in Investment Assets are
recognised in the Statementof FinancialActivities.
stocks
Stocks ère valued atthelower ofcostand netrealsablevalue. Net realisab￿ value is based upon estirnatedsellingprre
les5 further costs expLrted to be incLrred to completionand disposal. Provision is made for obsdete and slow-nvmg
items.
Finanaal instruments
The Group haselected to ap ￿¥the prOv￿lOn$ of Secticn Il'Ba5icFin3nual Instruments. andSection12'0therFinarKkHI
Instruments Issues. of FRS 102. in full.to all of its financial instruments.
Financial assets and flnanclal Ilablllties are reccgnised when the Group becomesa partyto the contractual provNon5
of the instrument, and are offset onlywhen the Grwp currently has a legallyenforceable rghtto setoffthe recognwd
amountsand intend5 eitherto settle on a netbasis, or to realise the asset and settlethe liabilltysimultsneousty.
39

THE ROYALAIR FORCESASSOCIATION
NOTESTOTHE FINANCIALSTATEMENTS
YEAR ENDED31 DECEMBER 2020
Principal Attountin8 Policies Icontinu*d)
Finanaal assets
Trade debtors.Eroupdebtorsand otherdebtows
Trade debtors,8roupdebtorsand otherdebtors lincludin8 accruedincomel whlchare receivablewithin one year
which do not constitute a financing transaction are initially measured at the transaction priTr and are subsequenty
measured atamortisedcost, beirE the transaction price lessany amountssettled and any impaimientlosse5.
A provision for impalrmertof trade debtors isestablishedwhenthere isobjertiveevid2ncethatihe amounts due wll
not be collected accordingtothe originalterms of the tontract. Impairmentlossesare rec(Eni5ed irh profitor105sfor
the excess of the carrwng value of the trade debtoroverthe present value of the futkjre cash flows discounted u&ng
the original effective Interest rate. Subsequent reversak of an impairment loss that objectively relate to an event
occurringafter the impairment loss was recognised, are recognised immedwtelyin the Statementof FinancialArtivitEs
Finanaal liabilitiesand equitv
Financial instrumentsare classified as liabilitiesand equity instruments accordin8to the substance of the contractt*l
arrangements enteredinto. An equityinstrumentisanycontrxtthatevidences a residual interest in the assets of Ihe
Group afterdeducting all of itsliabilities.
Othèr credttotsand a￿u41$
Othercredltors Ilncludingaccwalslpayable withln oneyear thatdo notconstitute afinancingtransaetion are Initial¥
measured atthe transaction pri￿ and subsequently measured atamortised cost, beingthetransactionprice le& a)y
amounts settled.
DerecoÈnitionof financial assets and li•bÉlities
A financial assetls derecognised onlywhen thecontrartual rightsto tash flows expwe or aresettled, orsubstsntialty all
the risks and rewards of ownership are transferred to another party. or if some significant risks and rewards of
ownership are retained but control of the asset has transferred to an()ther party that is able to sell the asset in its
entirety to an unrelatedthird party.A financial liabilty lor partthereofl 15 derecognised when the obligation speC￿d
in the contract is discharged.cancelled orexpires.
Pension costs
The Association opèratès a defined EEnefit pension schemethat closed to newentrants in December2¢J)Oandto fu￿re
accrual on 31 December2012.
Contributionsare paid to the scheme in aCccrdan￿With the recommend4tionsof the schemeactuary.
Actuarial gains and losse5 arising from any newvaluation and from updatirE the latest actuarial valuation to reflect
corkdition5 atthe balance5heetdate are rectydnised in the Statement of Finanaal Activities. The interestcosts arKI the
intereston assets areshown as a netamountof income oreXper￿ltUreaS appropriate. Other adjustments areinduded
within employeecosts.
As detaSled in note 11, pension scheme assets are measured at fair vakne and liabilitie5 are flleasured on an actuaia
basis and discounted at a rate equiwdlent to the current rate of retum of a high qualitycorFX)rate bond of equivaent
currencyand term ofthe scheme liabilities. Full vpdated actuarial v3luatiLYlS areobtainedtrienniallyand arerevEwed
in the followingtwo years at each balanCes￿et date. The defined beneff( pensionscheme assetorliabilty is pre￿nted
separately afterother net assetson the face of the balanceshe@t.
The 355et5 relating to the pension scheme are held separately from those of the Association in separate tru#ee
admini5teredfund5.

THE ROYALAIRFORCESASSOCIATION
NOTESTOTHE FINANCIALSTATEMENTS
YEARENDED31 DECEMBER2020
Principal Accountingpoliues Icontinuedl
Pension costs (continued)
The Association also contributes to individual ernployees, personal stakeholder pension arrangements. W￿re
employees are not members of the defined benefit scheme. Contribthion5 payable are ch¥ged to the 5￿te￿Ent Of
Financial Activitie5 asthey becomepayable. DIffe￿nceS between cOntri￿lti0ns payable in the year and contrilxjtiors
actually paid are shown in either accrua150rprepayments In the balancesheet.
Termination payments
The best estimate of the expencliture required to settle an obligation for termlnation benefits, is recogry5ed
immediBtelyas an expense. ¥vhen the GrcupisdemOnstrab￿ committedto termlnatethe emp1oymentofanem￿9Yee.
orto provide termination benefrts.
Operatin8 lease a8reements
Rentals underoperatin8leases where substartiallyall of the benefits2nd risks of owne￿hlPrerna1n with the lessor¥e
harged tothe Staternentof Financial ACti￿1t1es on astrai8ht-line basis over the lea* temi.
Voluntee
No amounts are included inthe financial statementsto reflectthe valueof workundertaken byvolunteer5.
DONATIONS, LEGACIES AND SUB5CRIPTION5
UNestrirted
Funds
£.￿0
Restritted
fund5
£'ooo
Total
20ZO
£'LrJO
Total
2019
£'ooo
Group
Donations
Re$￿entIal respite care ho￿e5
ArnEd Forces Co*na)t Fund Trust
Others
LegacEs
Sub%riptK)ns
29
1.027
215
29
1,027
1,827
2,886
885
78
1,612
2,886
885
2.628
4.272
978
5,383
1.271
6,654
7,956
Ur*estrlcted
Funds
£'o)o
Re5trirted
fund5
£'o)o
Total
2020
£'th)o
Total
2019
£'ooo
Association
Donations
ResKlential and respite care honEs
ArnEd Fcrtes Covena)t Fund Trust
Others
LegacEs
SubxriptDn5
29
1,027
107
29
1,027
1,719
2,886
885
78
1,612
2,886
885
2.719
4,272
978
5,383
1,163
6.546
8,047
41

THE ROYALAIR FORCESASSOCIATION
NOTESTO THE FINANCIALSTATEMENTS
YEARENDED31 DECEMBER2020
4. SUBSIDIARIES
Durlng the year. the Assc(latlon ownedthe whde of the share caFAtal of RAFATRAD ￿mIted, RAFA Ho￿Ing bmti£d,
RAFA Clubs Limited3nd RAFAKidz Limited.
The activity of RAFATRAD Limited IComp3nyNo. 034552551 isthe sale of commemorative iternsand memorabllig
the provision of fundrai&n& memterslip and marketingpro(kJrtstothe Associationand its branches
The activity of RAFA HouslngLlmlted (Registered number IP17723R) 15 that of the provisionof independent housin8 f
re￿red membersof the RAFfamily based in Storrington. We5tSussex.
RAFA Club5 Limrtedlcompary 119270891 15 CU￿entlynottr3dIng.
The activity of RAFA Kidz Limited (Company No. 119270271 isthatof operatingnurserie5 and outof school clubs.
RAFA Kidz Limitedowns RAFA Kidzone Limited (Compary No. 08418367and Charity registrationNo. 11548221 whKh i
an it)corporated charity registered in England and Wales. The activity of RAFA Kidzone Limited is to enhance the
developmentand educationof children by offering inclugveand appropriate playand learningfacilities.
RAFA Kidz Limited owns RAFA Kidz Wings Limtted (Company No. 123728141. RAFA Kidz Wings Limited is cu rrenty
dormant
The results of the subsidiaries and the amounts included wlthin the Group Statement of Financial Actiirities are as
follow5..
RAFA FLRAFATRAD RAFAClubs
2020
Z020
2020
£,￿0
£'rJ)o
£'ooo
RAFA Kklz RAFA Kidzone
2020
2020
£'coo
£'ooo
Incorr
176
451
729
671
Expenditure
11481
14891
11,0291
16171
Svrpluslloss forthe
financial p*riod
28
1381
13001
54
All of the incorne and expenditwe 15 unrestrictedfor both years exceptfor £108k whichisincluded within the Ir￿0￿
for RAFA Kidzone Limitedin the currentyearand ts restricted
The aggregate of the assets, liabilities and fund50fthe 5ub5idi3rytompanies at 31 Decemberwere..
RAFA PLRAFATRAD RAFA Clubs
2020
2020
£,￿0
£'ooo
RAFA KKIZ RAFA Kklzone
2020
2020
£'(x)o
£'ooo
£'o)o
As*ts
783
540
iii
13011
16141
14641
1291
Fund5 (Share
capital and
reserves
482
1741
13531
179
42

THE ROYALAIR FORCESASSOCIAMON
NOTE5TO THE FINANCIALSYATEMENTS
YEARENDED31 DECEMBER2020
SUBSIDIARIES Icontinuedl
RAFA Kidi Wirgs Limited was incorporated on 20 December 2019 and has been dorrnant for its first period up b) 31
December 2020.
The registeredofficeof all subsidiaries isAtlas House, 41 Wembley Road, Leicester LE3 iur.
During the year RAFATRAD Limrted charged the Association £148k12019'. £328kl in respert of Air Mail and RAF
Association branded go(x15. A150, during the year. the Association charged RAFATRAD Limited £25k12019'. £131k) li
respectof premi5e5 recharges, RAFAssociation branded good5 and accountantcosts. Atthe yearendthe Associat"on
was owed £552k12019=£419kl by RAFATl￿DLIMlted.
During the yeai the Association charged RAFA Hous1￿ Limited £9k12019.. £nill and at the year end the Association
owed £39kl2019.. £68k) to RAFA Housing Limited. Duringthe year,there have been recharges between theAssociation
and RAFA Kid2 Limited forvarious expenses,the net movement amounted to £167kl2019 £141kl.Atthe yearendtr
A550ciation wasowed £359k12019..£190kl by RAFAKidz.
INVESTMENT INCOMEAND INTEREST
Group and Assoaation
2020
£'ooo
2019
£'ooo
UK listed investments
Cash deposits
Branch and otherloans
Properties
747
787
114
229
864
All investment inccme and interest is unrestrictedfor both years.
6. INCOME FROMCHARITABLEACnVITIES
Group
UnTestrirted
Fund5
£'wo
Restrirted
funds
£,￿)0
Total
2020
£,￿0
Total
2019
£'ooo
Accommodath)n fees
Grant5 and fundrasingir£orr
Nursery fees
UK governrT*nt Coronavru5 job re•Ent¥)n
458
167
1,076
458
3,256
1,076
1,160
2,805
261
2,786
3,C@9
5,875
4,226
The group received a further£53,10912019.. fnill underthe UK govemmentcoronavirusjob retention 5chemewhich
has been allocatedto trading income within othertradin8 activitie5.
43

THE ROYALAIR FORCESASSOCIATION
NOTESTO THE FINANCIAL5TATEMENTS
YEARENDED31DECEMBER2020
6. INCOME FROMCHARITABLEACTIVMES Icontinuedl
Associatlon
Unrestrirted
Funds
£,￿0
Rèstrictèd
funds
£'ooo
Total
Total
2019
£'ooo
£.￿0
AccOmmodat￿n fees
Grants and fundrasing incon
UK governnEnt coronavir￿ job retentDn Khen
321
162
892
321
3,251
892
I,ooi
2,720
1,375
3,721
7. TOTAL EXPENDITURE
Group
Employèe
nd
related
st5
Depre(iatK)ti
and
3mort15atx)n
Other
COSts
Total
2020
Total
2019
£'ooo
£'ooo
£'ooo
£'ooo
£'ooo
Costs of raising funds..
Directcosts
1.257
880
2.137
4,078
134
Allocated SUPFX)rtcosts
Charlty's charltableactlvities
Directcosts
4.873
2,054
5,051
2,379
9,924
4.900
7.289
5.307
Allocated suppK)rtcosts
Other expenditu
Interest Paid on Branch Deposits
Intsreston Oeflned Benefit Pension Llabillties
Share of the reduction in valueof the jointvenbjre.
due to the dispersal ofthe jointventurefunds, as
intended Isee note 141
467
17
17
iioi
252
252
409
8.184
470
8,586 17.240
17.209
44

THE ROYAL AIR FORCESASSOCIATION
NOTESTOTHE FINANCIALSTATEMENTS
YEARENDED31 DECEMBER2020
7. TOTAL EXPENDITURE{continuedl
2020
2019
£'ooo
Alloeated supportC05ts=
Heatand light
Other slte Costs
AdvertI51￿and promotions
Printing and ststionery
Telephone
Insurance
E'ooo
45
64
287
52
225
108
58
61
46
226
128
Repairs and rna1ntena￿e
Depreaationand amortisation
Other expenditure
Other equiwient
Staff costs
27
66
470
508
1,292
26
1,169
52
2,054
359
2,203
815
Governan￿ costs
4,903
5,441
Included within totsl expenditurearepayments underoperatirglea5esa5 follows..
Land and building5 paymentsof £47k12019-£52kl
Equipmentpaymentsof£8kl2019-£23kl
The costs of raisingfunds includes WirgsAppeal rebates allocated tg branchestotalllng £23kl2019- £199kl.
Supportcosts incluJe£92k in respectof additional payments into the defined benefitpensicn scheme,12019- £470kl
Total expenditure includesauditCf5' remunerationof £29k12019..£27kl, and a loss on disposal of fixed assetsof £16k
12019=£1(1(l.
Fees payable to RSM UK Audlt LLP and its associatesin respectof non-a￿41tareforT¥X ctynp1lan￿ £6k12019.. £3k)
other services £19k12019.. £17k).
45

THE ROYALAIR FORCESASSOCIATION
NOTESTO THE FINANCIALSTATEMENTS
YEARENDED31 DECEMBER2020
7. TOTAL EXPENDITURE (continued)
Assoclatlon
Employee
and
related
05ts
Depredat*
and
amortisatr
£'ooo
Other
tosts
Total
2020
Total
2019
£'ooo
£'ooo
£'ooo
£'ooo
Costsof raising funds..
DirectC05ts
Allocated Sup￿rtc0sts
Charity'scharitableactivities
Direct Costs
Allocated supp)rtcosts
Other expenditure
InterestPaid on Branch Oeposits
Intereston Defined Benefit Pensic￿ Liabilities
1.028
737
1,765
3.648
130
3,551
1,945
4,803
2,386
8,354
4,768
6.811
5,281
437
17
17
iioi
6,524
437
7,950 14,911
15.862
2020
£'ooo
2019
£'ooo
Allocated supportcosts-
Heatand light
Other site costs
AdvertisirE and promction5
Printing and stationery
Telephone
Insurance
Repairs and maintenance
Depreaation and amortisation
Other expenditure
Other equipment
Staff costs
GoVernan￿c0sts
45
64
38
221
287
58
107
61
224
128
24
437
66
478
1,273
26
1.169
52
1,945
409
2,203
815
4,768
5,411
46

THE ROYALAIR FORCESASSOCIATION
NOTESTO THE FINANCIALSTATEMENTS
YEAR ENDED 31 DECEMBER2020
8. GRANTS PAYABLE
Group and A5soaation
2020
2019
£'ooo
£'ooo
Welfare grantsto individuals
Association property grant5 to branches
Armed For￿ScoVenant Fund Trustgrarbts
paid to branche5
26
33
526
559
33
9. TRANSACTtONSWITHTRUSTEES
The Trustee5 neitherreceivednorwaived any emoluments duringtheyear12019- £nill. Trustees eX￿nSeS of £101135
were reimbursed for directly incurred travel and subsistence expen5e512019- £47,794) to 24 trustee512019.. 23
trustees).
10. STAFFCOSt5
Group
2020
Associatlon
2019
2020
£'ooo
2019
£'ooo
£'ooo
£'ooo
Wagesand Salaries
Social 5ecurityc05ts
Employer contributions to defined
contribution5 schemes
7.125
592
6,610
561
5,665
504
5,813
509
372
513
334
486
8,C189
7,684
6,503
6.808
Included in the staff c05t5 above is an amount of £235.281 which relates to the total re5tructurirg costs for tl
or8anisations.
47

THE ROYALAIR FORCESASSOCIATION
N07ESTO THE FINANCIALSTATEMENTS
YEARENDED31 DECEMBER2020
10. STAFF COSTS Icontinuedl
The average number ofemployees throughouttheyear, calculated ona full-time equivalent basis, analysed by localhjn
was..
Group
2020
Association
2019
2020
2019
Number
Number
Number
Number
Welfare
Membership
Headquarters
Families Federation Sermce
RAFATRAD
69
84
69
84
29
30
29
30
65
60
65
64
io
io
io
io
RAFA HousSng
RAFA Kid2 linc Kid20nèl
59
36
239
229
173
188
The average numberof emplcryees Iheadcountl dtjringthe yearwas 31312019.. 3131.
The numberofemployeeswhose emoluments forthe year fell within the following bands was..
Groupand Association
2020
2019
Number Number
£60,OOlto £70.(
£70,001 to £80.(KK)
£80,ODlto £90,(KX)
£90,001 to £lOO.000
£120,OOlto £130.OQKI
li
11 ernployees12019.. 91 eaming morethan £60,OOOparticipated in an AsSOCPtion defined contr1t￿tion pension xhenE.
Employer contrib￿lOnS to individual 5takeholderschemes were £62.06912019.' £57,086).
The totsl employee benefrts of the key management personnel of the Associatign were £897k12019'. £￿7k1, wh￿h
includes Salary, Employers National Insuranee Contribution, Employers Pension Contribution, all allowan￿
redundancyand notice period payments.
IL PENSION SCHEMES{Groupand A55QCiation}
The AssoclatSon operates a defined benefit pension scheme, which cb5ed to new entrants in December 20(K)
future atcru31 on 31 December 2012.The assets of the scheme are heldseparétely fromthose of the AsscKiaticn in an
independently admlnlstered fund. Contributions arebased uponthe reC(ThMenda￿0nsof a qualified actuary.
The most recent actuarial valuation of the stheme was carried out as at l January 2019 by an indepencknt actLHV
usingthe projected unit method. This valuation 5howedthatthe value of the scheme's assets was £15,99o,(QOWh￿h
representedonly 91 percentof the benefitsthat had acenjedto members, afterallowingforexpectedfutureincreases
in earnings. In valuingthefund, itwasassumed thatthe investment retum would be 5.5 percentperannum comFX)und.
The scheme deficit is secured againsta chargeon the Ass¢xiation's headquarters Atlas Houseat Leicester.
48

THE ROYAL AIR FORCESASSOCIATICh
NOTESTOTHE FINANcfALSTATEMENTS
YEARENDED31 DECEMBER2020
IL PENSION SCHEMES (continued)
A full actuarièl valuation was tarrSed out at l January 2019 and upd3ted as at 31 December 2020 by a quali
independent actuary. The majorassumption5U5ed bythe actuarywere..
2020
2019
Rate of increase of pensions in payment
Discount rat
Inflation assumptiori IRPII
3.0%
1.3%
3.0%
2.9%
1.9%
2.9%
The mortality assumptions usedin the valuationof the pensbn liabiliiieswere:
2020
Years
21.7
23.9
2019
Years
21.6
23.7
Retiringtoday (CU￿entlyased 651..
Males
Females
Retiring in 20yearslcurrently aged 451..
Males
Females
22.7
24.7
22.6
24.5
The A550Clation's assetswerè transferred from Legaland General with-profrts policy to managedfund investments on
15 January 2010. The Associatiorfs assetsin the schemeat31 December 2020were.'
2020
£'ooo
2019
£'ooo
Bonds
Equities
Property
Insurance Cc￿traCts
Diversified fund5
LDI funds
Netcurrentassets
3,315
2,801
I,oio
5.885
2.393
2.145
177
3,151
4,020
1,226
5,859
1.908
818
51
Totsl assets
17,726
17,033
2020
£'ooo
2019
É'ooo
Fair value of scheme assets
Presentvalueof scheme liabilities
17.726
17,033
118.5561 117,4631
Deficit in the scheme
18301
1430
49

THE ROYAL AIR FORCES ASSOCIATION
NOTESTOTHE FINANCIALSTATEMENTS
YEAR ENDED31 DECEMBER 2020
11. PENSION SCHEMES1uirttin￿dJ
In accordarKe with FRS102, prowsion has been made bythe A550ciatiorhforthe deficitof the scheme. This is ref￿cted
in the financial statementsasfollows..
Analysisof thè amountstharged to St*en*ntof FinandalActlvltles
2020
£'ooo
2019
£'ooo
Expenses paid bythe scheme
58
88
Analysisof financial elementof pension5COSt
2020
£'ooo
2019
£'ooo
Intereston assets
Interest on pension St￿Me liabilities
318
13251
442
14441
Netcost
171
Analysis of the actuarialEainl110s51 on deffined beneflt pensionscheme
2020
£'ooo
2019
£'ooo
Gain on asset return
Experiencegainllbssl on liabilities
Changes in assumptionsunderlyin6the pre*ntvalue of the scheme liabilties
1,048
58
11,5331
1,523
11331
11,9441
Actuarial10s5 recogThsed in Statementof Financial Attivitie5
14271
15541
CumulatSve actuario110ssrecognised in Slatementof FinancialActivities
13,1711
12,7441
Changesln the prèsertvalue of defined benefitobllgatlor6
2020
£'ooo
2019
£'ooo
Openlngdefined benefit¢bligation
Intere5tcost
Experiencelgainiilosson liabilitie5
L055 on changes in assumptions
Benelits paid
17,463
325
1581
1,533
17071
15.696
444
133
1,944
17541
Closing defined benefitobligation
18.556
17.463
50

THE ROYALAIRFORCESASSOCIAllON
NOTESTOTHE FINANCIALSTATEMENTS
YEARENDED31 DECEMBER2020
IL PENSION SCHEMESlcontinued)
Changesinthèfairvalue of plana5sets
2020
£'ooo
2019
E'OOO
Opening plan assets
Interest on assets
Gain on asset return
Contributionsby employer
Benefit5 paid
Expenses paid bythe sc￿rne
17,033
318
1,048
92
17071
1581
15,440
442
1,523
470
17541
1881
Closing defined benefitobligation
17,726
17.033
The actual retLtrn on planassetswas £1,366kl2019= £1.965kl.
Thè Assoclation expert5to contribute £IOOkto itsdefined benefitpension plansin the yearended31 December2021.
The AsSOClation also contributes to a WPP scheme. With eflect from l August 2020 the Association redU￿d its
contributionto the scheme from 9 percentor 10 percentto4 percertof each memberfs grosssalary and the per&on
costfor the year was £369k12019- £506kl.
12. INTANGIBLE FIXEDASSETS
Computer
software
£'ooo
Total
Group and Association
£'ooo
Cost or valuation:
At l January 2020
Additions
Transfer from tangiblefixed assets
461
1.429
461
1.429
At31 December2020
1,890
1,890
Amortisatio
At l January 2020
Charge for year
Transfer fromtangiblefixed assets
iii
90
iii
90
At 31 December2020
201
201
Net bookvalue:
At31 December2020
1,689
1.689
At31 December2019
51

THE ROYALAIR FORCESASSOCIATION
NOTESTO THE FINANCIALsfATEMENTS
YEAR ENDED31 DECEMBER2020
Il TANGIBLEFIXEDASSETS
Properties
Short
Leasehold
£'ooo
Equipment
and Furniture
£'ooo
Total
Group
Freehold
£'ooo
£'ooo
Cost orvaluation:
At l January 2020
Additions
Disposa15
Transfers
8,346
19
59
3A96
67
11951
11.4461
12,301
86
11951
11,4461
At31 December2020
8,365
59
2,322
10,746
Depreaation:
At ljanuary 2020
Charge for year
Depreaationon disP05al
Transfer to 5ntangible fiKedassets
2,003
165
26
1,696
193
11661
1901
3,725
359
11661
1901
At31 December2020
2.168
27
1.633
3,828
Net bookvalue:
At31 December2020
6.197
32
689
6.918
At31 December2019
6,343
33
2,200
8,576
Properties
Short
Leasehold
£'ooo
Equipment
and Furniture
£'ooo
Associatlon
Freehold
£'ooo
Total
£'ooo
Cost orvaluatlon-
At l January 2020
Additions
Disposals
Transferto Intangible fixedas5ets
7.662
59
3,499
11.220
17
11951
11.4291
11951
11,4291
At 31 December2020
7.671
59
1,883
9,613
Depreaation:
At l January 2020
Charge for year
Depreciationon disposaLs
Transfer to Intangible fixedassets
1,707
153
26
1.445
172
11661
1901
3.178
326
11661
1901
At 31 December2020
1,860
27
1,361
3,248
Net bookvalue:
At31 December2020
5,811
32
522
6.365
At31 December2019
33
52

THE ROYALAIRFORCESASSOCIATION
NOTESTO THE FINANCIALSTATEMENTS
YEAR ENDED31 DECEMBER2020
13. TANGIBLE FIXEDASSETS (Contin￿d)
Freehold property with a carrying amount of £ 1.796k12019.. £I,8￿k) was revalued at 31 December 2Q19 by an
employee of the Ass￿lation, who isa memberof the Royal Institution of Chartered survey0￿, on an existing u* cFen
rnarketvalue basi5. The historical c05tof the freehold proFerty carriedatvaluation is £468k12019.. £468kl.
14. INVESTMENTS
Fair Value
2020
£'ooo
HistorÉcal Cost
2020
£'ooo
Group
2019
£'ooo
2019
E'ooo
al Flxed assets
Listed investments
Inve5tmentpropertie5
Investmentinjointventure
Longterm savings bond
20,973
1,839
23,326
3,049
252
155
12,834
165
15,639
165
252
ISS
22,812
26,782
12,999
16,211
Falrvalue
2020
£'ooo
Historical Cost
2020
£'ooo
Association
2019
£'ooo
2019
£'ooo
al Fixed assets
Listed investments
Investmentproperties
Long term savings bond
20.973
1,839
23,326
3,049
155
12,834
165
15.639
165
155
It is the Association's intention to undertake a professI￿allY remewed valuation of the investment propertie5 every
five years. The last professional valuation was at 30 November 2010 and was undertaken by Frank Marshall & Co,
qualified chartered surveyors. Trustees considerthe valuation at the 31 December 2020 to be not materiall
differenttothe 30 November2010 valuation 8nd the valuation is therefore the Trustees. estimatedfair value. butit
our intentionto have these professionally valued in 2021.The basis of valuation is the open marketvalue of the Icng
leasehold interests in the property, subjecttoemistirytenancles.
M0￿ments0nfairva1Ué duringthe year-Association
Listed
InvestmÈnt
Investments
property
E'OOO
£'ooo
Longterm
savings bond
£'ooo
Total
£'ooo
l January 2020
AdditlQE15
Disposals
Netinvestmentgains
23,326
313
12,8301
164
3,049
40
11,iooi
11501
155
26,530
353
11551 14,0851
14
31 December 2020
The net inve5tmentgains reflectthe revaluationof Investments atthe year end.
53

THE ROYAL AIR FORCESASSOCIATION
NOTESTOTHE FINANCIALSTATEMENTS
YEARENDED31 DECEMBER2020
14. INVESTMENTS Icontinuedl
No one investsnentrepresents morethan S per certofthe portfolio by marketvalue.
Investmeniinlolnt venture
Share ofjoint venture
2020
2019
£'ooo
£'ooo
Carrying valueatbe8innirg of year
Share of net expenditure injointventure
252
12521
661
14091
Carryingvalueatend of year
252
The Group holds an interestin ajointly controlledentity,The RAFIOoAp￿aj1CompanY No. 09977273 and Regi51Ered
Charity No. 11673981 which is a company not having a share capitsl. The Group ha5 guaranteed an amount of £1
contributionto assets of the charityin the eventof it beingwound up.
The RAFIOO Appeal is ajoint venturebetweenthe Assouationand threeothercharities.The investmentis accounted
for underthe equity method. Theregistered office ofThe RAFIOOApk*al is 67 Portland Place, London. WIB IAR.
A surnmaryofthe Assoclation'5 shareof RAFIOOApkEal's results isshown below:
2020
£'ooo
2019
£'ooo
Income
Expenditure
27
4361
11151
Netexpenditure
115
409
The A5sociation'sshare of RAFIWAppeal's assets and liabilities is as follows:
2020
£'ooo
2019
£'ooo
Currentassets
Currentliabilities
214
12141
264
1121
Netassets
252
The results for the cwrentyearare basedon the draftfinarKialstatements forthe year ended 31 De￿Mber202o.The
prioryear figures werebased on the managementaccountsprepared upto 31 October2019.
The Association holds investments of £10512019.. £1051 reFresentingthe entireordinarysharecapital of itssubsidw,
companies which arè efirninated on the groupconsoSidaticn. detaik of the subsidiary companiesare given in note 4 of
the accounts.
54

THE ROYALAIR FORCESASSOCIATION
NOTESTOTHE FINANCIALSTATEMENTS
YEAR ENDED 31 DECEMBER2020
14. INVESfMENTSlcontinuedl
Overseas investments
Branch Deposit
Branch Deposit
Fund- Formby
Fund
Branch
£'ooo
£'ooo
Total
£'ooo
2020
North America
European
Asia Pacific
Emerging rnarket
Global
3,602
385
1,427
495
4.365
154
17
80
3,756
402
1.507
495
4.589
224
10,274
475
10,749
2019
North America
European
Asia Pacific
Emerging Market
Global
3.OS3
306
i.o?1
118
3,262
149
13
51
3,202
319
1,122
118
3.421
159
7,810
372
8.182
bl Net Èainson investmentassets
Group and As50aation
2020
£'ooo
2019
£'ooo
Netgain5 on listed investments
Netgains on currentassetproperties
Netgains on currentasset investments
Kaupthingsingerand Friedlander distribution (see note 261
14
2,910
loo
13
27
The Revaluation Reserve of £11,141k12019.. £11,953kl inckndedwithin thè unrestrkted furKls withinthe balan￿ sTr￿et
of boththe Group and Association, ariseson the yearend fairvalue of Investments and freehdd property held atfar
value, less their historicalcosts.
15. LOANSTO BRANCHES
Included underthis headingis an arnountof £nil12019- £4.4421 falling duewithin oneyear.
55

THE ROYALAIR FORCESASSOCIATION
NOTESTOTHE FINANCIAL5TATEMENTS
YEAR ENDED31 DECEMBER 2020
16. ASSEtS HELD FOR RESALE
2020
£'ooo
2019
£'ooo
GroupandAssoclatlon
Freeholdpr(perties
580
1,415
17. DEBTORS:AMOUNTSFALUNG DUEWITHINONEYEAR
oup
Association
2020
2019
£'ooo
£'ooo
2020
£'ooo
2019
£'ooo
Trade debtors
Amountsdue from subsKliaries
Prepayrnents and accrued incryne
Other debtors
23
166
21
911
294
26
lis
644
304
io
321
58
392
61
402
619
1,252
1.073
Within the Association, amounts due from subsKJiaries includes£50,(K)012019.. £50,0(K)Iwhichi5 due after moreth
one year. Within theGroup. otherdebtors incI￿￿e5 £niS12019.. £22,725lwhichis due after more than orie year.
I& CREDITORS.. AMOUNTSFALLINGDUEWITHIN ONEYEAR
Group
2020
£'ooo
A$50tiation
2020
£'ooo
2019
£'ooo
2019
£'ooo
Taxation and social security costs
Other creditors
Accrualsand deferred income
Dep051ts by brancEEs
Formby Branch
Amounts owed to 5ub5idiaries
281
830
467
1,717
940
164
668
82S
1,170
940
263
708
447
1,717
940
39
151
606
780
1,170
940
68
4.235
3.767
4,114
3,715
Deposits by branches are held in a separate portfolio of investments comprising UK listed investments and c&h
deposits, managed byeitherRathborEslnvestment Management Llmited or Rotklild5.
56

THE ROYAL AIR FORCESASSOCIATION
NOTESTOTHE FINANCIALSTATEMENTS
YEAR ENDED 31 DECEMBER2020
18. CREDITORS: AMOUNTSFALUNG DUEWITHIN ONEYEAR (continued
The amounts included in aC￿￿1$and deferredincome can be analysedasfollows..
Group
A550ciation
2020
£'ooo
2019
£'ooo
2020
£'ooo
2019
£'ooo
Accruals
Deferredincome
252
215
487
338
238
209
462
318
467
825
447
780
Included in accruals is an amountof £37k12019- £131kl in respectof unpald pensicn contributions.
Group
£'ooo
Associatlon
£'ooo
Movementindeferred income:
2020 operin8balance
Release duringthe year
2020 donations and subsuiptic￿s in advan
338
13331
210
318
13181
209
2020 Closin8 balarKe
215
209
Withinthe Group and Associatiorn deferred incomecompri5es membershipsubscriptionincome, Govemrnentfunc4ng
and deposits re￿iVed in advan￿.
19. CREDITORS: AMOUNfs FALUNG DUE AFTERMORETHAN ONEYEAR
Group
2020
£'ooo
Association
2020
2019
£'ooo
£'ooo
2019
£'ooo
Deferred income- capi(al grant
279
283
279
283
57

THE ROYAL AIR FORCES A550CIATION
NOTESTOTHE FINANCIALSTATEMENTS
YEARENDED31 DECEMBER2020
20. OPERATING LEASECOMMITMENTS
The total future minimtjm lease payments under n0Th-Can￿lIableOperatlnsjea5esareSet outbelow..
Group
2020
£'ooo
Asso¢iatlon
2020
2019
£'ooo
£'ooo
2019
£'ooo
Equipment..
Due within one year
Due betweentwo and fwe years
li
33
io
io
27
io
Land and buildings:
Due withirb one year
Due betweentwoand fNe years
40
46
40
13
13
92
96
53
30
21. RE5TRICTEDFUNDS
At
l January
2020
£'ooo
84
151
82
113
38
li
361
60
86
22
At
31 December
2020
£'ooo
109
Isi
A55oaation
Income
£'ooo
32
Expenditure
£'ooo
Transfers
£'ooo
Eastern AreaChaletFund
Homes RefurbiEhment
Flichard Peck House
FlowerdownHouse
Rothbury House
Richard Peck House Stairlrfl
Respite Care and Welfare
Sussexdown Residents, Fund
tvor Maloney
Scottish Development Fund
Talking Air Mail
Preston Offi
Forces in Mind Trust
Storybook WirE5
RAF BenevolentFund Grants
Libor
Vehicle fundfor Areas
Volunteer Welfare Officers
Wexford
Befriending
Veterans
Other Restrlcted Funds
1821
151
113
49
li
361
12
1601
86
22
51
63
50
142
165
1861
197
109
56
12
66
2.693
12,6611
141
229
105
56
141
1171
1301
15261
11091
58
17
1,027
292
13
501
388
205
1,769
4.252
13,4511
11271
2,443
Grotrp
Digby Nursery Fu￿1
108
108
127
58

THE ROYAL AIR FORCESASSOCIATION
NOTESTOTHE FINANCIALSTATEMENTS
YEARENDED31 DECEMBER2020
ZI. RESTRICTED FUND5{contlnued
GroLtp and Association
At
l January
2019
£'ooo
84
151
82
115
34
li
361
60
86
22
16
52
121
At
31 De￿mber
2019
E'OOO
84
151
82
113
38
li
361
60
86
22
Income
£'ooo
Expenditure
£'ooo
Transfers
£'ooo
Eastern Area ChaletFund
Homes Refurbishment
Richard Peck House
FlowerdownHouse
Rothbury House
Richard Peck Housestalrl
Respite Care and Welfare
Sussexdown Residents, Fund
Ivor Maloney
Scottish DevelopmentFund
Talking Air Mail
Preston Office
Forces in Mind Trust
Storybookwings
RAF BenevolentFund Grants
Llbor
Vehicle fundfor Area5
Volunteer WelfareOffj￿rs
Wexford
8efriending
Other Restricted Funds
38
34
1401
1301
806
18061
1181
51
63
86
1211
207
109
56
12
66
89
191
1.408
11.4181
197
109
56
12
66
69
13
178
305
1691
1131
12671
12911
205
The purpose of each fund is as stated above except for the Re5Plte Care and Welfare fund, which represents an
aggregation of each Areas Respitecarefunds. which havethe commonpurposeof contriixJtingtowardswelfarebre*s
for eligible individuals.
Transfersfrcm unrestrictedfundsto restrictedfunds have been made to supportthe objertives of therestrirtedfund%
Transfers frorn restricted funds to unrestricted fund 15 repre*ntative of the Richard Peck House Fund ceasing to be
restricteduponthe Sale of the pr(perty, and Sussexdownftesidents, Fund being reclassifiedas unrestricted
59

THE ROYAL AIR FORCESASSOCIAnON
NOTESTO THE FINANCIALSTATEMENTS
YEARENDED31 DECEMBER2020
22. DESIGNATED FUNLIS
At
ljanuary
2020
£'ooo
At
31 December
2020
£'ooo
GroupandAs50ciation
Intome
£'ooo
Expendlture
£'ooo
Transfers
£'ooo
Fixed Assets
Home5 Review
Membership Innovation
InvestmentFund
Homes Fund
Welfare Fund
PropertyRepairsand Maintenance
Defined Benefit Pert%onScheme
3.375
86
346
4,310
1,355
1,500
7,375
1.988
3,375
1861
346
4,310
11,3551
6,500
16,6251
8,000
750
1,988
20,335
1,5661
18,769
At
ljanuarv
2019
f'ooo
At
3IDe￿Mber
2019
É'ooo
Groupand A550ciation
Income
£'ooo
Expendlture
£'ooo
Transfers
£'ooo
Council Projects
Other Projects
Fixed Assets
Homes Review
MembersFMp Innoydtion
Investrnent Fund
Homes Fund
Investrnent in 5trategicGrovrth FuThl
Welfare FLtnd
PropertyRepairs and MaintenarKe
Defined Benefit Pen￿onScheme
18
413
4,562
86
346
2,505
1,500
3.114
902
4,894
1181
14131
11,1871
3.375
86
346
4,310
1.355
1,8OS
11451
13.1141
598
2,481
1,988
1,995
1,500
7,375
1,988
20,335
18,340
60

THE ROYALAIR FORCESASSOCIATION
NOTESTO THE FINANCIALSTATEMENTS
YEARENDED31 DECEMBER2020
22. DESIGNATED FUNDSIContinuedl
In 5upportofthe p13n to 2023 the Trustees have approved a numberof changesto designatedfunds. The valueof Ihe
property ful￿ has been reducedfollow￿)gthe reshapingof the Associationin re¥onseto COVID-19 andcharEedw*s
of working.
Adesignated fundof £1,988kwa5 createdin 2019 to coverany future 5horrfall on thedefined benefit pen5ionschent
resulting from adverse financial market rnovements and the resulting impact on the scheme assets. This is still
onsideredvalid in lightof the impact of COVID-19on markets and the initial suspen%on and sub*quentredwtion of
ernployercontributionsto the pensi￿ Scheme, as more particular￿ referred to in note 11.
A full revlewofthe membershipoffering is planned for202 land2022and it Isthereforebelievedthatthe Membership
Innovation fund of £346k is still valid.
The Invesbment Fund, remansat£4,310ktotake accountof the continued uncertaintlesseen In the financial markets
resulting from the ongoing uncertainties arourKI COVID-19 and global political and trade un￿rtaIntieS The Tru51ees
believe thatthis fund is sufficierttowithstand a slgnificantmarketcorrection.
Whilst difficult to quantify with any degree of uncertainty it 15 widely believed that the Welfare needs of the
Association'5 beneficiaries will continue to evdve with increasng complexity and Considerab￿ unmet need ha% teen
identified as a resultof the COVIO pandemic. The Trustees havetherefore increased the amounts setasldefor We￿￿e
deliveryby £6.5(KlktO£8.o￿kto enable research, designand irnplementationof Welfareproducts and Serm￿S￿
undertaken.
The Homes Reviewand HomesFund have been released followin8thedea5ion to cea* deliverin8or8anr re5piÈ cwe
for Rothbury Hou5eand Flowerdown House.
61

THE ROYAL AIR FORCES ASSOCIATION
NOTESTOTHE FINANCIALSTATEMENTS
YEAR ENDED31 DECEMBER2020
23. ANALYSI50FN￿ASSETSBETwEEN FUN[6
Group:
Unrestritted
Funds
£'ooo
Restrirted
Funds
£'ooo
Total
Funds
£'ooo
Funds balances at 31 Detember2020
are representedby:
Intangible fixed assets
Tangible fixed asset5
Investments
Loansto branches
Currentassets
Currentliabilities
Creditors dueafteroneyear
Pension promsion
1,689
6.918
22.812
131
3.248
14,2351
12791
18301
1,689
6.918
22,812
131
5.799
14,2351
12791
18301
2.551
Total net assets
29,454
2,551
32.005
Assodatlon..
Unrestrirted
Funds
£'ooo
Restrictèd
Funds
£'ooo
Total
Funds
£'ooo
Funds balan￿$ at 31 De￿mber2020
are representedbv:
Intanglble fixed assets
Tangible fixed a55ets
Investments
Loansto branches
Current assets
Current liabilities
Pension prowsicn
1,689
6,365
22,812
131
3,275
14,1141
18301
1.689
6.365
22.812
131
5.718
14,1141
18301
2,443
Total netassets
29,328
31,771
62

THE ROYAL AIR FORCE5ASSOCIATION
NOTESTOTHE FINANCIALSTATEMENTS
YEARENDED31 DECEMBER2020
23. ANALYSISOFNET ASSETS BETWEEN FUN[6 Iconttnuedl
Group:
Unrestricted
Funds
£'ooo
Restricted
Funds
£'ooo
Total
Funds
£'ooo
Fundsbalantes at 31 De￿Mber20l9
arè representedby..
Tangible fixed assets
Investments
Loans to branches
Currentassets
Current liabilities
Credltors dueafteroneyear
Penslon prO￿ls1(n
8,576
26,782
132
2,944
13.7671
12831
14301
8,576
26,782
132
4,713
13.7671
12831
14301
1,769
Total netassets
33,954
1,769
35,723
A550aation:
Unre5trirted
Funds
£'ooo
Restrirted
Fund5
£'ooo
Total
Funds
£'ooo
Funds balancesat 31 Oetomber2019
art rÈpre5entedby:
Tangible fixed assets
Investments
Loansto branches
Currentassets
Currentliabilities
Pension pro*isic
8.042
26,530
132
2.653
3.7151
14301
8,042
26.530
132
4,422
13,7151
14301
1,769
Total netassets
33.212
1,769
34,981
63

THE ROYAL AIR FORCESASSOCIATION
NOTESTOTHE FINANCIALSTATEMENT5
YEARENDED31 DECEMBER2020
24. RECONCIUATIONOF NETINCOME/IEXPENt#TUREITO N￿cAsH FLOWFROM OPERATrNGACTIV￿IES
Group
2020
£'ooo
Association
2020
£'ooo
2019
£'ooo
2019
£'ooo
Netlexpenditurel/income
Adjustment5for'.
Donation gift in kind
Gifted propertie5
Share ofjointventure
Contributionsto defined benefit scheme
Expenses borne by pen5ionscheme
Depreciationcharges
Amortisation charges
Amortisation of capital grant
Loss on disposal of fixed assets
Gains on investments
Deficiton fixed assets
Investment incorne
Return on defined benefit Scheme assets
Interestpaid
Intereston definedbenefr(pension liabilities
Decreasein assets for resale
Ilncreaselldecrease in stocks
Decreasellincreasel in debtors
IDecrea*l in creditors
13,2911
2,037
12.7831
2,424
11281
11,3751
409
14701
88
508
951
252
1921
58
359
iii
951
11,3751
1921
58
326
iii
14701
88
478
16
1271
io
12,9781
378
11,0231
14421
iioi
444
1,170
11141
184
19241
16
1271
io
12,9781
378
11,0231
14421
iioi
444
1.170
87
12141
18761
18641
13181
17
325
294
iiooi
234
1791
18641
13181
17
325
294
11691
11481
Netcash lused Inl by operatlng actlvltles
12,1581
12,241
2,2951
12,3091
25. CASH ANDCASH EQUIVALENTS
Group
2020
£'ooo
Assooation
2020
2019
£'ooo
£'ooo
2019
£'ooo
Cash and cash equivalents represent..
Cash at bank
Cash held by investmentmanagers
1,853
2,529
1,465
879
1.357
2,529
1.047
879
4.382
2,344
3,886
1,926
26. LEGACIES
The Association is aware of a numberof legacpsto be received due to the legacy pipeline infomiation but we
difficultto quantify as the rnonetsryvalue is uncertain and cannotbe establ$hed.

THE ROYAL AIR FORCE5ASSOCIATIChll
NOTESTOTHE FINANCIALSTATEMENTS
YEARENDED31 DECEMBER2020
27. CONTINGENT AS5
The A550ciation has recovered 85.75p in the £ in respect of its claim in the Kaupthing Singer & Fr1edIa￿r
Administration. The Administrators currently estimate that total distributions to unsecured cre ditors should b
rnaximum of 86.5p in the £. The asset is not recogni*din the accounts asthere is no certainty regardingthe amount
and timing of future distributions.
28. RELATED PARTYTRANSACTIONS
The branche5 fO￿arded Wtyigs Appeal income of £ 121k12019.. £967kl to the Association which is included in Wing5
Appeal income. The Assoaation returned £23k12019.. £199kl to the branches for them to use for their own weW¥e
fundswhich is included in eXpe￿lture. In addition, £lk12019.. £9k) was paid to thebranches in respectof w1n8sA￿E￿
expendr(ureand the* empensesare includedin the costof raisingfunds.
Membership subscription rebates of £91k12019:£146kl areto be paid to branc￿ are included in expendlture.
The Assotlatitsn paid interest of £18k12019.' £IOkl to the branches holdire detosit accryjntswiththe Associatlonlsee
note 141. The Association received interest of £nil12019.. £lkl from branches that have received loans frotm t
A550Clation (see note 151.
29. FINANaALINSTRUMENTS
The carryingamountofthe Grou￿5 and Association5finartiallnstruments at31 De￿Mberwere.'
Group
Association
2020
2020
£'ooo
E'OOO
2019
£'ooo
2019
£'ooo
Financial assets..
Equity instruments measured at fair value through rEt
income / expendthre
20,973
23,326
20,973
23,326
30. DONATIONS-GIFTED PROPERTY ASSErs
Duringthe year, the RoyalAir Forces A5￿cIationbranCheS atAberthre, Stanley and penZan￿ closedresulting in 11Yee
properties bein8transferredto The Royal AirForces Associationfor £nil consideration.
The transfer hasbeenaccounted foras a combinationthat is in substarKeagift. The prO￿rtieStrar￿ferred werevaued
attheir fairvaluesand recc£nised in the Balan￿ Sheetunder theapprq)riate heaYirE with a ccrresponding netamjnt
recognisedin the Statementof FinancialA¢tiMties as Donatlons- Assets Gifted from Closed Bra￿he5.
During the year. managernent clarified ownership of three properties previously held as assets held for sale arKI
investments properties re5ultin8in an 3dju5tmenttothevaluationof thetotal Pro￿rtieS held. ThefollowIngtab￿ sets
outthe fairvalues of propertiestransferredand an analysisof theirrec0￿lt10n in the Statement of Financial ActivitE&
2020
£'ooo
2019
£'ooo
Investment properties
Assets held for resale
14101
15411
880
495
19511
1.375
All propertiestran5ferred areclassifiedas UnrestrKted Fund5.
Shortly after the yeaTenda furtherpropertyfor resale wasgifted tothe Association atavalue of £350k.
65

THE ROYAL AIR FORCESA550CIATION
NOTESTO THE FINANCIALSTATEMENTS
YEAR ENDED 31 DECEMBER2020
31. PRIOR YEARGROUPSTATEMENTOF FINNNCIALACTIMTIES
Note5
UnTe5trrtted
Funds
£'ooo
Restricted
Funds
E'OOO
Total
£'ooo
INCOME:
Donatlonsand Legadès
Donatlons-assetsgiftedfrom closed bra￿heS
Donatlon in kind on acquisition
7,575
1,375
128
381
7,956
1,375
128
29
Charitable Artivities:
Residential and respite care homes
Nurseryfees
1.399
261
2,566
3,965
261
otherTradlngActlvitles:
Tradlng income
Grand Drawand other fUndra￿Ing income
418
I,iio
418
I,iio
Investmentlncome
1,023
1,023
Total Income
13,289
2,947
16,236
EXPENDITURE..
Cost of Raising Funds
4,212
4,212
Charitable Activities..
Residential & RespiteCareHome
Friendship& Welfaresupport
Grants
Other Supportcosts
3.710
4,883
148
871
46
2,773
160
3,756
7.656
308
876
Other Expenditure:
Interest Paid on Branch Deposits
Interest on Defined Benefit Persicyi Liabilities
Share of netloss in jointventure
Total Expenditure
iioi
iioi
409
14,225
409
17,209
2.984
Net gainson hnvestmentassets
13
3,010
3,010
Net incomellexpenditurel
2,074
1371
2.037
Other recognlsedlosses:
Actuarial losses on defined benefit pension scheme
li
15541
15541
Net movementin funds
1,520
1371
1,483
Reconciliation of Funds
Total Funds Brought Forward
32.434
1,806
34.240
Total Fundscarried Forward
66

THE ROYALAIR FORCESASSOCIATtON
NOTESTOTHE FINANCIALSTATEMENTS
YEARENDED31 OECEMBER2020
31. PRIOftYEARAssoaAmON STATEMENTOF FINANaALACTIVITIES
Notes
Unrestricted
Funds
£'ooo
Restricted
Funds
£'ooo
Total
£'ooo
INCOME:
Donationsand Legades
Donations- assetsgifted fromclosed bra￿￿S
7.666
1,375
381
8,047
1,375
Charitable Artivities:
Residential and respitecare homes
1,155
2,566
3.721
OtherTradlnBActivities:
Grand Drawand other fundrasing income
I,iio
I,iio
Investmentlntome
1,023
1,023
Totol Incgme
12,329
2,947
15.276
EXPENDITURE
Cost of Raising Funds
3,778
3,778
Charltable Activltles..
Residential & Re5Plte Care Home
Welfare SUpp￿t
Grants
Other Supportcosts
3,527
4,562
148
871
46
2,773
160
3,573
7,335
308
876
Other Expenrfitwe:
Interest Paid on Branth Dep)stts
Intereston Defined Benefit Pension Liabilities
iioi
iioi
Total Empenditurè
12.878
2.984
15.862
Net 8ainson investmentassets
13
3,010
3,010
Net inc0mellexpendltu￿I
2,461
1371
2,424
Other recognisedtosses:
Actuarial losson defI￿d benefit pertslonscheme
li
15541
15541
Net movementinfunds
1,907
1371
1.870
Reconciliation of Funds
Total FundsBrou8ht Forward
31,305
1,806
33,111
Total Fundscarried Forward
33.212
1.769
34,981
67