Royal Air Force Benevolent Fund THE ROYAL AIR FORCE DEPENDANTS FUND ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended December 2023 Registered Charity No 253492
The Royal Air Force Dependants Fund Report and Financlal Statements 31 December 2023 OFFICE HOLDERSAND PROFESSIONAL ADVISERS Trustee: The Royal Air Force Benevolent Fund Trustees of the Royal Alr Force Benevolent Fund Alastair Irvine BA (Honsl MCSI Alison Benjamin 8A (Honsl Graeme Craig MA Lady Mayhew BAIHon51 Allyson Arnold MSC BSCN IHons) Patrick Aylrner FCA Pe85y Walters IRe518ned 18 May 20241 Rachel Prendergast Richard Cryer MA Icantobl FCA Richard Daniel 8Sc IHons1 FRAeS Squadron Leader ClSve Martland MBE Win8 Commander Sarah Davis MBA MSC FCIPD Win8 Commander Sophieloanne Allen MBChB MRCGP DRCOG DFSRH Doccmed DAvMed PGCME Manag•m8nt Commlttèe Member$ Alr Vlce.Mar5hal Chrls Elliot C8 CBE MA BSC DL (Chalrl Air Commodore Slmon Harper OBE Group Captain Dawn Murty Richard Cryer MA Icantabl FCA Squadron Leader Cllve Martland MBE Vlctorla Aklnboro BSC (Honsl ACMA CGMA Company Secretaryvictorla Aklnboro Bsc IHonslACMA CGMA RAF Dependants Fund Manager: Andy Cairns luntil 19 Aprll 20231 David Pinner Ifrom 19 Aprll 20231 Prlnclpal Offlce: 67 Portland Place, London, W18 IAR Charlty Nurnber: 253492 Independent Audltors: Saffery LLP, 71 Queen Victoria Street, London EC4V 4BE Bankers: Barclays Bank plc, I Churchill Place, London E14 5HP Sollcltors: Charles Russell Speechlys LLP, 5 Fleet Place. London EC4M 7RD Investment Managers: CCLA Investment Management Limited, Senator House, 85 Queen Victoria Street, London, EC4V 4ET
The Royal Air Force Dependants Fund Report and Flnanclal Statements 31 December 2023 REPORT OF THE TRUSTEE FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustee presents its annual report and financial statements of the Charity for the year ended 31 December 2023. The financial statements have been prepared in accordance with the accounting policies set out in Note 1 to the accounts and comply wlth the Charltys Scheme, the Charltles Act 2011, Charities Act 2022 and the Charities SORP IFR51021. Structure. governance and management The Royal Air force Benevolent Fund, a charity registered in England and Wales, charity number 1081009, is the sole trustee of the Royal Alr Force Dependants Fund. The consolldated flnancial statements for the year ended 31 December 2023 are available from the Royal Air Force Benevolent Fund, 67 Portland Place, London. W1 B IAR and The Royal Alr Force Dependants Fund Ss an unlncorporated, registered charity, number 253492. It was originally established under a trust deed dated 1 February 1967 which was subse9uently amended in December 1972. In October 2009 the Charlty Commission approved a scheme to govern the Charity. The scheme amended the Charitys objects, dlscharged the custodian trustee and appointed the Royal Air Force 8enevolent Fund IRAFBFI a5 Trustee. The objert for whlch the Charlty Is establlshed is such charitable purposes as the Trustee of Royal Air Force Dependants Fund shall think fit including but not limited to: Promotlon of recruitment to, and the morale and efficiency of Royal Air Force by any mean5 but principally Ithough not exclusively) by providing a sum of money or other asslstance to provlde immedlate Support to family memberlsl or dependantlsl of beneficiaries., The relief in need, hardship or distress of beneficiaries and Ihelr families and dependants. Although the Trustee may assist dependanis who are in need by virtue of flnancial hardship, sickness, di5ablllty of the effects of old age through the provision of discrerionary grants, loans, gifts, pensions or OtheiSe, in practice. only death grants are made by the Charity. The Trustee has appointed a Management Committee to which it ha5 delegated the power to undertake the followlng funttions: Oversee the day to day management and adrninistration of the Fund. Make recommendations to the RAFBF in full re8ardin8 any issues relating to the management and administration of the Fund. Such other responsibilities and activities in full as the RAFBF may from time to time decide. Under its terms of reference, the Management Committee consists of at least three but no more than six members appointed by the Board of Trustees of the Royal Air Force Benevolent Fund Ilhe Fund'l. who is the sole trustee. At least two members of the Management Cornmittee shall be members ofthe Board of Trustee5 Of the Fund. In addition, at least one member of the Management Committee shall be a serving member of the Royal Air Force, appointed by the Deputy Chief ofthe Air Staff. The seThin8 member shall
The Royal Air Force Dependants Fund Report and Financial Statements 31 December 2023 normally be the person appointed as the DeputyA55iStant Chief of5taff Community Support IDACOS CSI. The serving member holds office until such time they resign from this position or until such time a5 they are replaced as DACOS CS. The trustees of the RAF8F have appointed the following office holders as members of the Management Comrnittee to hold office until Such time as they leave office: Controller, Royal Aif Force Benevolent Fund Director of Grants, Services and Programmes. Royal Air Force Benevolent Fund; and Director of Resources, Royal Air Force Benevolent Fund. The Management Committee meers once a year to declde the Charitys strategy, policies, set the level of the subscription, agree the maximum amount of the death granL review the risks facing the Charity and revlew the performance of the Charitys professional advisers. The day-to-day admini5tratlon of the Fund is delegated to a member of staff. the RAF Subscriptions Manager, who operates from office accommodatlon provided by the Royal Alr Force. The Subscriptions Manager gives presentations about the benefits that the Fund offers to new recrults at RAF College Cranwell and RAF Halton. Financial, governance and other support are provlded by staff of the RAFBF for whlch the Royal Air Force Dependants Fund Is charged an annual administration fee. Rlsk manarnet The 8oard of Trustees of the RAFBF ha5 overall responsibility for managln8 rlsks faced by the RAF8F and Its subsidiary entities. The identification of major risks associated with the operation of the Dependant5 Fund Is carried out as part of the rlsk management process of the parent charlty. The maln rSsk identlfled Is that of the Dependants Fund having insufficient a55ets to meet the expected level of death grants In the event of an incident resulting in major1055 of Ilfe, The Committee manages this risk in two ways. Firstly. it has accSdental death insurance to cover the deaths of more than 15 and up to and Including 250 members dying in a single incident which 15 valid up to 3 March 2026. Secondly, the Charity aims to have sufficient reserves to pay death grants to approxlmately 300 families and cover the Charit15 running costs for 12 months in line with the prevlous year. Objectlves and activities for the publlc b•nellt The Fund was established in 1967 to relieve immediate financial distress in the event of Ihe death of a subscriber, frorn whatever cause, by giving a tax-free death in service 8rant, payable. at the discretion of the TrLJStee, to a beneficiary nominated by the subscriber. Since the Fund was established, up to and Includlng 31 December 2023, 3,357 death grants have been rnade includins 19 in the year ended December 2023. The Fund 15 very popular with service personnel due to its simplicity of design. worldwide cover without restriction on cause of death, and the timely paymeni to beneflclaries of a tax-free lump sum when it is most needed.
The Royal Air Force Dependants Fund Repart and Flnanclal Statements 31 December 2023 The Management Committee confirm5 that they have referred to the guidance contained in the Charity Commission'5 general guidance on public benefit when reviewing the Fund's aims and objectives and in planning future activities and policies. At 31 December 2023 there were 27,342 subscrlbers to the Fund. some 87% of RAF personnel, compared wlth 28.876188%) at 31 December 2022. 19 subscribers died during the year, the same a5 in 2022 and an annual average in the period 2005 to 2023 of19 each year. Natural causes accounted for 12 deaths. 2 Sn road trafflc accidents and 5 died by suspected Suicide. Of those who died, 4 were under the age of 30, 5 were aged between 30 and 40, and 10 were aged over 40. The Charity paid £380,000 in death grants to 19 beneficiaries. In keeping with the Charitys object of relievlng immediate financial distress. all payments were made within 48 hours of the notificatSon of the death, or as close to thls as possible. Flnanclal review The Charitys work is rellant on Income from subscribers and returns on its investments. Income from subscriptions in 2023 amounted to £171,30012022: £179,362). These subscriptions are deducted from the gross pay of subscribers under the Give As You Earn Scheme. Investment Income including bank interest amounted to £237.76512022'. £224,410). No legacy Income was receive(J in the year12022; £5,640) thls was exceptional income in 2022, Total resources expended amounted to £434,50412022'. £401,846) of whlch £380,00012022'. £360.0001 wa5 for death grants. The unrealised net gains on investment assets was £634.431 12022- £893,261 unrealised lossl. The fund balance increased from £7.220,769 at 31 December 2022 10 £7,829,762 at 31 Decernber 2023, after deducting the operating deficiL due to gains on Investments. The subscriptlon has been 50p per month slnce May 2009 and the maximum death grant payable has remained £20,000 since May 2022. Investment pollcy and performance The Fund's investment policy Is to enhance the value of its investments and earn an appropriate return through the adoptlon of a managed. diversified portfolio taking a medium level of risk. The main objectives of the policy up to 31 December 2023 are: To hold investments in a manner that will assist the Fund in delivering its objectlves In Ihe shorL medium and long term. To adopt a total return investment policy with the aim of achievlng gross target return of CPI plus 5% on a five-year rolling basis. To earn a rate of total return above inflation, so that real capital value 15 preserved while also generating income to be used for welfare actlvltles. To measure overall performance against an agreed market derived benchmark and use an industry wide peer group benchmark to assess performance against the average. To employ investment managers who generate low c05t5 and develop relatively stable portfoli05 that meet the objectives of this strategy in the long term.
The Royal Air Force Dependants Fund Report and Flnanclal Statements 31 December 2023 Invested a55ets continue to be managed by CCLA in the COIF Charities Investment Fund. The total return In the year was + 12.4%12022: .9.0%). The 2023 12.4% total return compared to a benchmark of 13.3% {2022.' benchmark -10.1961. The total return over 5 years to 2023 wa5 +9.9% compared to a benchmark return 7.7r16. Over 71 % of the assets were invested in global equities. Information technology was in the top five sector5 invested in from which strong gains were made. After the losses in 2022 investment market values recovered in 2023 with an unrealised gain of £634,431 (2022.. £893,261 unreleased lossl. Incorne yield was 2.75%12022:3.00%I and distributions were maintained with £221,215 {2022'. £221,064) received in the year. Reserves pollcy The Management Committee has reviewed the Charitls needs for reseNes in line with the guidance issued by the Charity Commission. Accidental death insurance was in place to cover the deaths of more than 15 and up to 250 members dying in a single incident but this excludes acts of terrorism or warfare, The Management Committee however recogn15es that an incident resultlng In a major loss of Ilfe could occur as the result of terrorism or warfare, and therefore believes that it is prudent to have sufficient reserves to cover this. The Reserves pollcy Is to hold sufficient funds to pay death grants to approxlmately 300 familles and cover the Charitys running costs for 12 months. At the end of 2023 thls 15 equated to £6,055,000. Total reseNes held were £7,829,762. The Trustee has assessed whether the use of the going concern basss Is approprlate and has done so wlth due consideration of the current and proletted financlal position of the Charlty, the accidental death insurance cover and the external economlc environment. The conclusion of the Trustee is that there are adequate resources to continue operating for the foreseeable future. The Trustee has rnade thls assessment for a period of at least one year from the date of approval of the financial statements. The Charity therefore contlnues to adopt the going concern basis in preparing Its flnancial statements. Plans for the future The Management Committee plans to contlnue to make death grants to beneflclarles, usually within 48 hours of being notified that a subscriber has died. Statement of Trustee Responsibilities The Trusree is responsible for preparing the Trustee Report and the financial statements in accordance with applicable law and United Kingdom Accountin8 Standard5 (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in En8land and Wale5 require5 the Trustee to prepare financial statements which give a true and fair view of the state of the affairs of the Charity and of the incoming resources and application of resources of the Charity for that period. In preparing these financial statements, the Trustee is required to: select suitable accounting policies and then apply them con515tently,' observe the methods and principles in the Charities, SORP IFRS102): make judgements and estimates that are reasonable and prudent;
The Royal Air Force Dependants Fund Report and Financial Statement5 31 December 2023 state whether applicable UK accounting stsndards have been followed, subject to any material departures which are explained in the financial statements.. prepare rhe financial statements on a going concern basis unless it is inappropriate to presume thar the Charity will continue in business. The Trusteels responsible for keep5ng proper accountlng records that di5c105e with reasonable accuracy at any time the flnancial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011 and the provision5 of its trust deed. It Is also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregulariiies. In so far as the Trustee is aware., there Is no relevant audlt informatlon of whlch the Charitys auditor Is unaware,. and the Trustee has taken all steps that they ought to have taken to make themselves aware of any relevant audlt informatlon and to establish that the audltor Is aware of that Snformatlon. By order of the Board on 2July 2024 Date: Rlchard Cryer Signed on behalf of the Board of Trustee5
The Royal Air Force Dependants Fund Report and Flnanclal Statements 31 December 2023 Independent Auditors Report to the Trustee Oplnlon We have audited the financial statements of The Royal Air Force Dependants Fund for the year ended 31 December 2023 which comprlse the Statement of Financial Activitie5, the Balance Sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and Unlted Kingdom Accounting Standards, Including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the state of the charltys affairs as at 31 December 2023 and of Its ncomlng resources and application of resource5 for the year then ended.. have been properly prepared in accordance wlth United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Charities Aci 2011, Basls for oplnlon We conducted our audlt In accordance wlth International Standards on Audit5ng ILIKI {ISAs IUKII and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities for the audit of the financlal statements section of our report. We are Independent of the charity in accordance with the ethlcal requirements that are relevant to our audit of the financial statements in the UK, includlng the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requlrements. We believe that the audit evidence we have obtained is sufflcient and appropriate to provide a basis for our opinion. Conclusions relating to 8oln8 concern In audlting the financlal statements, we have concluded that the tru5tees' use of the going concern ba515 of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not Identified any material uncertainties relating to events or conditions thaL individually or collectively, rnay cast 5gnIficant doubt on the charitYs abllity to continue as a going concern for a period of at least twelve months from when the financial statement5 are authorised for issue. Our responsibilities and the responslbllltles of the rrustees with respect to going concern are descrlbed In the relevant sections of this report. other information The trustees are responsible for the other information, The other information comprise5 the information Included in the annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial Statements does not cover the other information and, except to the extent otheise explicitly ststed in our report we do not express any fonn of assurance conclusion thereon.
The Royal Air Force Dependants Fund Report and Financial Statements 31 December 2023 Our responsibility is to read the other information and. in doing so. consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatefnents, we are required to determine whether this gives rise to a material mi55tatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information,. we are required to report that fact. We have nothlng ro report in thls regard. Matters on whlch we are requlred to report by exceptlon We have nothlng to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you If. In our opinion: the Information glven in the Trustees, Annual Reporr is inconsistent in any material respect with the financlal statements,. or the charity has not kept sufficient accountlng records.. or the financlal statements are not in agreement with the accountin8 records and returns,. or we have not received all the informatSon and explanations we require for our audit. Responslbllltles of trustees As explained more fully in the Trustees, Responsibilities Statement set out on page 6-7, the trustees are responslble for the preparatlon of the financial statements and for be5n8 satlsfled thar they give a true and falr view, and for such internal control as the trustees determine is necessary to enable the preparatlon of financial statements that are free from material mi55tatement, whether due to fraud or error. In preparln8 the flnancial statements, the trustees are responsible for a5sesslng the charitys ablllty to continue as a going concern, disclosing, as applicable, matter5 related to going concern and using the going concern basis of accounting unless the trustees either intend 10 liquidate the charity or to cease operations, or have no realistic alternative but to do so. Audltof5 responslbllltles for the audlt of the financi41 stat¢mgnt5 We have been appointed as audltors under the Charitie5 Act 2011 and report in accordance wlth regulations made under that Act. Our objectives are to obtaln reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error. and t0 155ue an auditor5, report that includes our opinion. Reasonable assurance Is a hlgh level of assurance but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detett a marerial misstatemenr when it exists, Misstatements can arise from fraud or error and are considered materlal If, Individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial Statements.
The Royal Air Force Dependants Fund Report and Flnanclal Statement5 31 December 2023 Irregularitie5. Sncludin8 fraud, are instances of non-compliance with law5 and regulations. We design procedures In line with our responsibilities. outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of deterting irregularities, including fraud are detailed below. Identifying and assessing risks related to irregularltles.. We assessed the susceptibility of the charitvs financial statements to material misstatement and how fraud mlght occur, including through discusslons wlth the trustees. discussions within our audit team plannin8 meeting, updating our record of internal controls and en5urlng these controls operated a5 intended. We evaluated p0551ble Incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulation5 that are of slgniflcance In the context of the charity by di5CU55i0n5 With trustees and updating our understanding of the sector in which the charity operates, Laws and regulatlons of direct significance in the context of the charity include the Chariiles Act 2011, the Charitles (Accounts and Reports) Regulations 2008 and guSdance issued by the Charlty Cornmission for England and Wales. Audit response to rSsks identifled.. We considered the extent of compliance with these laws and regulatlons as part of our audlt procedures on the related financlal statement items including a revlew of financlal statement disclosures. We reviewed the charitys records of breaches of laws and regulations, minutes of meetings and correspondence wlrh relevant authorities to identify potential material misstatements arislng. We discussed the charitys policies and procedures for compliance wlth laws and regulations with members of management responsible for compliance. During the planning meeting wlth the audit team, the engagement partner drew attentlon to the key areas which might involve non-compllance wilh laws and regularion5 or fraud. We enquired of management whether they were aware of any Instances of non-compliance with laws and regulations or knowledge of any acrual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether jud8ements made in makin8 accounting estimates gave rise to a p055ible indication of management blas. At the completion stage of the audlt, the engagement partners revlew included ensuring that the team had approached theSr work with appropriate professional scepticism and thus the capaclty to identify non-compliance with law5 and regulations and fraud. There are inherent limitations in the audit procedures described above and the further removed non- compliance with laws and regulations is from the events and transaction5 reflected in the financial Statements, the le55 likely we would become aware of rt. Also, the risk of not detecting a materlal misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. A further description of our responsibilities is available on the Financial Reporting Council's website at.. kl nsibil. This description forms part of our auditorfs reporr. 10
The Royal Air Force Dependants Fund Report and Flnanclal Statements 31 December 2023 Use af our report Thls report Is made solely to the charitys trustees, as a body. in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audli work has been undertaken so that we rnight state to the trustees those matters we are required to stste to them in an audiiorfs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the trustees as a body, for our audit work, for this report, or for the opinion5 we have formed. Saffery LLP 71 Queen Victorla Street London EC4V 48E Chartered Accountants Statutory Auclltors Date: Iq J+ 2024 Saffery LLP Is eli8lble to act as an auditor in terms of sectlon 1212 of the Companies Act 2006
The Royal Alr Force Dependants Fund Report and Financlal Statements 31 December 2023 STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2023 2023 2022 Income from: Note Sub5crlptlons Legacy income 171,300 179,362 5.640 Investments., Invested funds 221,215 16,551 221,064 3,346 Bank deposits Total Income 409.066 409,412 Expendlture on". Expenditure on charitable attivity 1434,5041 1401,8461 Net operatln8 {deflclt)lsurplus (25.438) 7.566 Net gainslllossesl on investment assets 634,431 1893,2611 Net Income and net movement In funds 608.993 (885.695) Fund balance brought forward Fund balance carrled forward 7,220,769 ,106,464 7.829.762 7.220.769 All funds are unrestricted funds and reported a5 fund5 de51gnated to the RAF Dependants Fund in the group accounts. There are no recognised gains or losses in either period other than as disclosed above. The notes on pages 14 to 18 form part of these financial statements. 12
The Royal Air Force Dependants Fund Report and Financial Statements 31 December 2023 BALANCE SHEET As at 31 December 2023 2023 2022 Note Flxed assets Investment5 7,424,827 6.790,396 Current assets Debtors 66,329 386.442 66.825 394,964 Bank balances and cash 452,771 461.789 Creditors: amounts falling due within one year 147.8361 131.416) Net current assets 404,935 430,373 Net assets 7.829.762 7.220.769 Funds of the charlty: Unrestrlcted Income lund 7.829.762 7.220.769 The notes on pages 14 to 18 form part of these flnancial statement5. Approved by the Trustee on 2 July 2024 and slgned on Its behalf by Date: Rlchard cryer Signed on behalf of the Board of Trustees 13
The Royal Air Force Dependants Fund Report and Financial Statements 31 December 2023 NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2023 Prlncipal accounting policie5 Basls of preparatlon The financial statement5 have been prepared to give a true and fair view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent requlred to provide a true and fair view. This departure has involved following the SORP rather than Accounting and Reporting by Charities: Statement of Recommended Practice (revised 20051 which has been withdrawn. Accountlng Conventlon These financial statements are prepared on a golng concern basis, under the hlstor5cal cost conventlon, with the exception of investments which are included at market value. and in accordance wlth appllcable accounting standards. The financial Statements have been prepared In accordance wlth the Flnancial Reportlng Standard applicable in the UK and Republlc of Ireland IFRS1021. The Charbty is a public benefit entlty for the purposes of FRS 102 and therefore the flnancial statements have been prepared In accordance wlth the Statement of Recommended Practice applicable to charities preparlng their accounts in accordance wlth rhe Financial Reporrlng Standard appllcable in the UK and Republlc of Ireland Charities SORP IFRS1021 and the Charltles Act 2011. Golng concern The Trustee has assessed whether the use of the going concern basls 15 appropriate. The Trustee has concluded that there are adequate resources to continue operating for the foreseeable future. The Trustee has made this assessment for a period of at least one year from the date of approval of the financial statements. The Charity therefore continues to adopt the going concern basls Sn preparlng its financial statements. Subscrlptlon Income Subscriprlon Income Is accounted for in ttte period in which It Is receivable. Investment Income Investment income is accounted for an accrual basis. Resources expended All expenditure is recognised in the period in which it is incurred. Resource5 expended include attributable VAT which cannot be recovered. 14
The Royal Air Force Dependants Fund Report and Financial Statements 31 December 2023 Payments to dependants are included in the financial statement5 based on claim5 notified to the Fund durlng the accounting period. Governance c05ts Governance costs are those incurred in connection with the constitutional and ststutory requirements of the Fund and include the cost of external audit and other constitutional related matters. Support costs Support COSt5 have been allocated beiween charStable activity and governance costs on the basis that the individual costs supporr the work carried out for the core purpose of the Fund. Investments Investments are stated at market value as at the balance sheet date and the galn or1055 taken to the statement of financial activltles. Cash and cash equlvalents Cash and cash equivalents include cash in hand, deposits held at call wlth banks, and other short-term liquid investment5 with origlnal maturities of three months or les5. Flnanclal Instruments Basic financial Instruments are measured at amortised cost other than investments whlch are measured at fair value. Employee beneflts The costs of short-term employee benefits are recognised as a liablliry and an expense. Penslons Staff are enrolled in the RAF Benevolent Fund's Group Personal Pension Plan scheme, ContrSbutlons are charged in the Statement of Financial Attivities as they become payable. Critical accounting estlmates and areas of Jud8ement In preparlng flnancial statement5 It is necessary to make certain judgements, estimates and a55umptions that affect the amounts reco8nised in the financial statements. In the view of the Trustee in applying the accounting policies adopted, no judgements were required that have a slgnificant effert on the amounts recognised in the financial statements nor do any estimate5 or assumptions made carry a significant risk of material adjustment in the next financial year. 15
The Royal Air Force Dependants Fund Report and Financial Statements 31 December 2023 Expendlture on charitable actlvity 2023 2022 Death payments Staff costs 380.000 360,000 37,241 25,270 Support costs: Admlnistrative expenses Other expenses Governance - audlt fee 8.096 7.395 3,252 3,746 5.915 5,435 434.504 401.846 Staff costs and other expenses are payable to RAF Benevolent Fund. Staff costs include: 2023 2022 Wa8es and salarles Pension costs 30,882 19,715 3,320 3,598 Soclal securlty 3.039 1,957 37.241 25.270 Keymanagement personnel are deemed co bethe members ofthe Management Committee none ofwhom received or waived any ernoluments or expenses durlng the period12022: nill. The sole Trustee. the RAF Benevolent Fund nelther recelved nor waived any emoluments during the period 12022,. nlll. The staff costs are for two people12022: two) employed bythe RAFBF and represents amounts recharged based on their time spent on the Fund's operational activity. Adminlstrative expenses are mainly £8,050 Insurance costs in 2023 {2022: £7,350) 16
The Royal Air Force Dependants Fund Report and Financial Statements 31 December 2023 Fixed asset investments Movements in investments during the perlod: 2023 2022 Market value at beginning of period Net {lossesy gains on revaluatSon Market value at end of year 6,790,396 634.431 7,683,657 1893,2611 6.790.396 7.424.827 Analysls of investment,. Market value CCL4- COIF CharSties Investment Fund 7,424.827 6.790.396 The historical cost of Investments held is £5,190.081 {2022: £5,190,081). Debtors 2023 2022 Members, Subscriptions receivable Investment dividend recelvable 15,035 15,546 51,294 51,369 66,329 66.825 Credltors 2023 2022 Audlt fee accrual 5.880 5,400 Death grant accrued Due ro The Royal Alr Force Benevolent Fund Other 20,000 20,000 21,956 5,864 152 47.836 31.416 Par•nt undertaklng The ultlmate parenr undertaking is The Royal Air Force 8enevolent Fund. incorporated by Royal Charter, En8land and Wales Charity number 1081009; Scotland SC038109. Copies of its group financial statements. which include the Charity, are available from 67 Portland Place, London, W1 B 1 AR. Related partytran5actlons During the year this charitys parent recharged stsff costs as set out in note 2. The balance due to the parent is shown in note 5. During the year there were no other related paty transactions. 17