Charity re8istration number: 231523 RAFA Eastbourne & Hailsham Branch Annual Report and Financial Statements for the Year Ended 31 t>ecember 2022 Gohj Ac¢x>untants 24 Southfield PcAegate East Sussex BN26 5LX Reference and Administrative Details Trustees, Report 2to3 Statement of Trustees, Responsibilities Independent Examiner's Report Statement of Financial Activities 6t07 Balance Sheet Notes to the Financial Statements 9t018 RAFA E4stbourne Brxnch REFEREN￿ AND ADMINisfRATIVE DEfAILS Re istered Char number: 231523 Princi al address 11-15 Wish Road, Eastbourne East Sussex BN214NX Trustees Wing Commander Gre80ry GarnxkBell RAF VRM Rtd Wln8 Commander Raymond Blunden RAF Rtd Mr Nicholas Collins Chair Secretary Treasurer Win8 Commander Kevln Tucker RAF VR(t) Rtd Mr John Harwood-Bee Mr Nicholas Letherby JP Mr Mark Bradshaw Mlss JenniferAdams Inde endent Examiner Gavin Clarke Gold Accountants Limlted 24 Southfield, Polegate BN26 5LX Page I RAFA Eastbourne & Hailsharn Brdnth TRUSTEES. REPORT The Trustees present their ￿port with the financial ststements of the Royal Air Force Association (RAFA) Eastbourne and Hailsham Branch (The Branch) for the year ended 31 December 2022. The Trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102) (effective l January 2019). OBJECTIVES AND ACTivmES Ob ectives and aims: The Branch is a Re8iStered Charity {No. 231523} and its objects mirror those of its parent Organisat￿n, The Royal Air Forces Association. These objects are: To promote, through the comradeship engendered by its members, the welfare by charitable means of all serrfin8 and former members of our Air Force5, their spouses and dependants. tO8ether with the widows and widowers and dependants of those who died whilst servlng or subsequently. To preserve the memory and honour the example, by charitable means, of our comrades or members of the Branch who have dled in our Ser4lce. To advise members of the Branch. persons eligible for membership and their wives, widows and dependants. regarding service and other pensions, disabillty awards and civilian employment and to assist, by charitable means, such members and persons when sick or in need of such assistance. To co-operate with. or support, any other charitable organi&ition havin8 exclusively charttsble objects 5imitar to the objects of the Brnnch. ACHIEVEMENT AND PERFORMANCE Charrtable activities: The Trustees, main charitable efftirts durin8 2022 focussed on 2 primary areas: l. The Trustees supported the assignment of fvnding from the Arnied Forces Covenant Fund Trvst {AFCFn. that was provided for the renovation of the RAFA Eastbourne & Hailsham Branch Club. which provides social. rnorale and mental well-being support to the RAF community in the Eastboume and Hailsham area. The Branch placed and coordinated all buildin8 and Servi￿ contracts to ensure that all the required work was carried out effertively, efficiently, to a good standard and represented value for money. 2. The Trustees spent considerable effort on funthraising for the RAFA Wings Appeal. The primary artivities were a local public lottery run over several month5, and a combined Battle of Britain dinner and fund-rdising auction. All lottery prizes and auttion lot5 were kindty donated by companies and organisations. thereby rninimising administration Costs and maximi5ing the return of funds for Wings Appeal. The combined events raised approxtmately £35th) for charitable causes. Page 2 RAFA Ea5tbourne & Hallsham Branth TRusfEES' REPORT (continued) The planned annual Wings Appeal fund-raising week during September was cancelled, as It coincided with the Mourning Period for Her Late Majesty Queen Elizabeth11. This cancellation regrettably had a signfficant negative ifflpatt on our planned fund-raising capability ￿er thls period. Governance and Welfa￿. The Trustees have continued to review and republish governance procedures and have Improved the Branch's communications capabilities and soclal medla footprint. The Trustees have continued to improve the Branch's welfare support capabilittes by the appointment of a fully trained voluntary Welfare Officer {who is also a qualified RAFA Case Worker). The aim is to expand and extend Welfare support annualty. FINANaAL REVIEW nci al fundin sourc Note 10 sets out an analysis of the assets attributable to the various funds and a descriptlon of the trusts. These assets are sufficient to meet the tharty's obli8ations on a fund-by-fund basis. Reserves Poli The Branch has promulgated a fomial 2023 Finanoal Plan induding a reserves policy. The Branch will retain at least one yearf5 general operattng costs and one yearfs projected welfare expenditure in low-risk investment accounts held with one of the Ufs leading charitable investment banks. The Trustees reco8nise that the retum on investment from these accounts may not match UK inllation but consider that higher rlsk atcounts for potentially hi8her returns cannot be justified. STRUCTURE. GOVERNANCE AND MANAGEMENT Governin document: The charity is governed by the constitution of the Royal Air Forces Association. anisational structure: The Board of Trustees as detailed on page l of this report. are responsible for the running of the Branch, as a 8ranch Commtttee under the guidance of RAFA Headquarters. Branch Committee meetings are bi-monthly and as required. In addition to members of the Branch Committee, the Branch has several volunteers who assist with various functions undertaken, including Wing5 Appeals activities. Approved by order of the Board of Trustees on 20 February 2023 and Signed on Its behalf bv: Wing Commander R Blunden RAF Rtd Branch Secretary and Trustee PaBe 3 RAFA Eastl)oume & Haltsham Branth Statement of Trustees, Respon$lbilitles The Trustees are responsible for Pfeparin8 the Trnstees. report and the finanaal sLitements In accordan￿ with the United Kingdom Accounting Standards {United Kingdom Generdlly Accepted Accounting Pract￿} and applicable law and regulations. The law applicable to charities requires the trustees to prepare financial statements for each financial year which give a true and fair view of the stste of affairs of the charity and of the Incomln8 resources and application of resources of the charity for that period. In preparing these financial statements, the trustees a￿ Tequired to: select suitable accounting policies and then apply them consistently. obSe￿e the method5 and princlples In the Charitles SORP. make judgements and estimates that are reasonable and prudenL state whether applicable accountingstandards have been followed, subjectto any material departures disclosed and explained in the flnancial statements; and Prepa￿ the financial statements on the going concern basls unless it Is Inappropriate to presume that the charity wlll continue in business. The Trustees are responslble for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial ststements cornp￿ with the Charities Act 2011. the Charities (Accounts and Reports) Regulations 2(N)8. and the provisions of the constitution. The trustees are also responsible forsafeguardin8 the assets of the charlty at)d hence fortaking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible forthe maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of flnancial statements may differ from legislation in other jurisdictions. Approved by the Trustees of the charity on 20 February 2023 and signed on its behalf by." Wing Commander R Blunden RAF Rtd Branch Secretary and Trustee RAFA Eastbourne & Hallsham Branth Independent Enminerf5 Report to theTrustees of RAFA Eastbourne & Hallsham Branch I report to the trustees on my examination of the accounts of RAFA Eastboume Branth for the year ended 31 December 2022. ftesponsibilities and basis of report As the charity trustees of RAFA Eastbourne 8ranth you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 20111.the Adl. I report in respert of my examInat￿n of the RAFA Eastboume Branch's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145{5}{bl of the Act. Independent examinerfs statement I have completed my examination. I conflrm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: l. accounting records were not kept in respect of RAFA Eastboume Branch as required by section 130 of theArt; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the accounting requirements concerning the form and content of accounts set out in the Charities IAccounts and Reports) Regulations 2(X18 other than any requirement that the accounts give a 'true and fair view. whith is not a matter considered as part of an independent examination. I have no concerns and have come acr055 no other matters In connettion with the examination to which attention should be drawn in this report in order to enable a proper understsndln8 of the accounts to be reathed. Mr Gavin Clarke FCCA 24 Southfield Polegate East Sussex BN26 5LX 20 February 2023 PaBe S RAFA Eastboume & Hai15ham Branth Ststement of Financial Artivities forthe Year Ended 31 December 2022 Unrestrirted Restricted funds funds Total 2022 Note Income and Endowments from: Donations and legacies Charltable activities Investment income 2Th) 13.806 5,071 5,071 Other income li,(X)5 11,CM)5 Total Income 24.616 5,271 29,887 Expendlture on: Raislng funds Charitable activities (11,3191 (5,1861 {11,3191 {305) 15,491) Total expenditure (16.5051 (3051 {16.8101 Net Income ,iii 8,111 4,966 4,966 13.077 13,077 Net movement funds Reconciliatlon of funds: Total funds brought forward Total funds carried forward 17,803 36.804 15 27.112 22.769 49,881 Tr* notes on 9 to 18 fm an integral partofthese fThncial Statements. RAFA Eastbourne & Haitsham Branth Statement of Financial Artivities for the Year Ended 31 D￿mber 2022 (contlnued) Unrestricted Restricted Funds Funds Totsl 2021 Note Income and Endowments from: Donations and legacies Charitable activities Investment Income 1,005 1,220 1,220 Other income Total income 4,610 1,220 5,830 Expenditure on: Raising funds Charitable activities {91,972) {75) {92,0471 1889) 11,2201 12,109 {92.861) (1,295) (94,1561 (88,2511 175) 188326) 1751 188,326) Total expenditure Net expenditure Net movement in funds (88,251) Recondllatlon of funds: Total funds brought foward Total funds carried forward 107.252 17.878 125.130 15 19.(X)I 17.803 36,804 All of the charir¢s attiVI￿eS derl¥Yfrom contlnulng ¢)pwatKrtsdwi￿thÈ al)th perlods. The funds breakdown for 2021 15 Sho￿ in note 15. The notes on pa8e$ 9 to 18forni an integral part of t￿se financial statements. Page 7 RAFA Eastb￿rne and Hailsham Branth (Registratlon Nmber. 2315231 Balance Sheet as at 31 December 2022 Note 2022 2021 Current a55ets Cash at bank and in hand 13 52,546 39.469 Credfrtors: Amounts falling due within cffie year 14 (2.6651 12,6651 Net assets 49.881 36,804 Funds of the tharity. Restricted Income funds Restricted funds 22.769 17,803 Unrestrlrted income funds Unrestricted funds 27,112 19,001 Totsl funds 15 49,881 36,804 The financial 5ts1an¢Trts on pa8es 6 to 18 wueaprxo¥e41 by trullee5. and i$8ue on 20 February 2￿23 andsi80&1 their beI￿rby. Wing R F Bhth RAF (Rdd). Branch S• Trustee The notes on ￿e5 9 to 18 form an intsgral part ofthese finanoal ststemènts. Page 8 RAFA Eastbourne and Hallsham Brdnth Notes to the Financial Statements forthe YEdr Ended 31 Decanber 2022 ACCOUNTING POLICIES Statement of cornpliance The financial statements have been prepared in accordance with the second edition of the Charities Statement of Recommended Prattice issued in Ottober 2019. the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland {FRS 1021 and the Charities Act 2011. Basls of preparatlon IIAFA Eastbourne & Hailsham Branch meets the definition of a public benefft entity under FRS 102. The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note{s) to these accounts. Goln8 toncern The Trustees consider that there are no material uncertainties about the charity's ability to continue as 3 80ing concern. Income and endowments Voluntary Income includin8 donations, gifts. legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be re￿ived, and the amount can be measured with sufficient reliability. Donotlons and leg(Kles Donations and legacies are recognised on a receivable basis when receipt 15 probable and the amount can be reliably measured. Grants are recognised when the charity has an entitlement to the fijnds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liabilty and included on the balance sheet as deferred income to be released. Gift old Incomin8 resources from tax reclaims are included in the Statement of Finanaal Activities at the same time as the gift to which they relate. Investment income Dividends are recognised On￿ the dividend has been declared and notification has been received of the dmdend due. RAFA Eastlxlurne and Hailsham Branth Notes to the finanr4al Statements forthe Year Ended 31 December 2022 {continvedl Expenditure All expenditure is recognised On￿ there is a legal or constructive obligation to that expenditure, it 15 probable settlement is required and the amount can be measured reliably. AII costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent and depreciatlon char8es allocated on the portion of the asset's use. Other support costs a￿ allocated based on the spread of staff costs. Rolslngfvnds These are costs incurred in attractin8 voluntary income, the management of investments and those incurred in tradin8 artivities that raise funds. Chorftoble octhiltles Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated direct to such activities and those costs of an indirect nature necessary to support them. Governance costs These indude the costs attributsble to the charivs compliance with constitutional and stattrtory reqUi￿rnents. Includin8 audit. strategic management and trustees, meetings and reimbursed expenses. Government 8fdnts Government grants are reco8ni5ed based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relatin8 either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relatingto assets are recognised overthe expected useful life of the asset. Where part of a grant relating to an asset is deferred. it 15 recognised as deferred Income. Taxation The charity is considered to pass the tests set in Paragraph I Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporat•on tax purposes. Accordingly. the charity is potentially exempt from taxation in respect of income or capital gains received within fdteeories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 orsection 256 of the Taxation of Chargeable Gains Act 1992. to the extent that such tncome or gains are applied exclusively to charitable purposes. Cash and cash equivalents Cash and cash equivalents comprise cash on hand and call deposits. and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insi8nificant risk of change in value. P￿10 RAFA Eastboume and Hailsham Branch Notes to the Financial Statements for the Year Ended 31 De￿ffiber 2022 (continued) Borrowings Interest-bearing borrowings a￿ initially recorded at fair value, net of transaction costs. Interest-be3rin8 borrowings are subsequently carried at amortised c05t, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities overthe period of the relevant borrowing. Interest expense is reco8nised on the basis of the effective interest method and is included in interest payable and similar charges. Borrowln8s are classified as current liabilities unless the tharity has an uncondltional right to defer settlement of the liability for at least twelve month5 after the reporting date. Fund structure Unrestrlcted income funds are general funds that are available for use at the trustees dlscretion in furtherance of the objectives of the charity. Restricted income funds are those donated for use in a partlculararea orforspetific purpose5, the use of which is restricted to that area or purpose. Flnanclal Instruments aassrfKotion Financial assets and financial liabilities are recognised when the charity betomes a party to the contrartual provisions of the instrumenL Financial liabilities and equity instruments are classified according to the substance of the contractual arran8ements entered into. An equity instrument is any contrart that evidences a ressdual interest in the assets of the charity after deducting all of its liabilities. Recognition and MeasU￿Meftt All financial assets and liabilities are initially measured at transaction price (including transaction c05ts), except for those financial assets dassified as at fair value through profrt or loss, which are initially measured at fair value (which is normally the transaction price excludin8 transartion costs), unless the arrangement constitutes a financingtransattion. If an arrangement constitutes a financing transactlon, the financial asset or financial liability is measured at the present value of the futu￿ payments discounted at a market rate of interest for a similar debt instrument. Financial assets and liobilities are only offset in the statement of financial position when, and only when there exists 3 legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Financial assets are dereco8nised when and only when a) the contractual ri8hts to the cash flows from the financial asset expire or are settled. b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity. Page li RAFA E7Stbourne and Hai15ham Branth Notes to the Financial Statements the Year Ended 31 December 2022 (contlnued) despite having retained some. but not all, signifKant rlsks and rewards of ownership, has transferred control of the asset to another party. Flnancial Ilabllltles are derecognised onty when the obligation specified in the contract is discharged. cancelled or expires. Debt instruments Debt instruments which meet the followlng condltlons are subsequently measured at amortised cost using the effective interest method: (a) The contractual ￿tUrn to the holder is {1} a fixed amount; (li) a positive fixed rate or positive variable rate." or lili) a combination of a positive or a negatNe fixed rate and a positive variable rate. (b) The contract may provide for repayments of the principal or the return to the holder (but not both) to be linked to a Single relevant observable Index of general price inflatlon of the currenq in which the debt instrument is denomlnated, provided such links are not levera8ed. (c) The contract may provide for a deteminable variation of the return to the holder durin8 the Itfe of the Instrument, provided that (i) the new rate satisfies condition (al and the variation is not contingent on future events other than {11 a change of a contractual variable rate: (2) to protett the holder against credit deterioration of the issuer; (31 changes in levie5 applied by a central bank or arislng from chan8es in relevant taxation or law." or lill the new rate is a market rate of interest and satisfies condition (a). (d) There is no contractual provision that could. by its terms, result in the holder losing the principal amount or any interest attributsble to the current period or prior periods. (e) Contrartual provisions that permit the issuer to prepay a debt Instrument or permlt the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in levies applied by a central bank or arising from changes in relevant taxation or law. (fj Contractual provisions may permit the extension of the tenn of the debt instrument, provided that the return to the holder and any other contractual provisions applicable durin8 the extended term satisfy the conditions of paragraphs (al to {c). Debt instruments that are dassified as payable or receNable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration experted to be paid or received, net of impairment. With the exception of some hedging instrnments, other debt instruments not meeting these conditions are measured at fair value through profit or loss. Commitmerlts to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairmenL RAFA Eastbourne and Hailsham Brdnth Notes to the Financial Statements for the Year Ended 31 December 2022 (continued) Investnxnts Investments in non