Royal AirForce Benevolent Fund THE RAF BENEVOLENT FUND HOUSING TRUST LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2023 Companie5 House No.. 1058896 Charity Commission., 264636 OSCR.. SC038218
The RAF Benevolent Fund Housin8 Trust Limited Report and Financial Statements 31 December 2023 Dlrectors and Trustees Air Vlce-marshal Chris Elliot CB CBE MA Bsc DL IChair} Wing Commander Sarah Davis MBA Msc FCIPD Mrs Victoria Akinboro Bsc (Honsl ACMA CGMA Air Commodore Simon Harper OBE MA FCIPD Mr Emry5 Rogers Mr Patrick Aylmer FCA Secretary Mrs Victoria Akinboro Bsc (Hons) ACMA CGMA Indèpondent Audltors Saffery LLP 71 Queen Vlctoria Street London EC4V4BE Banker5 Barclays Bank Plc, 1 Churchill Place London E145HP 5ollcltors Charles Russell Speechlys LLP S Fleet Place London EC4M 7RD Addleshaw Goddard Exchange Tower 19 Canning Street Edinburgh EH3 8EH Reglstered offlce 67 Portland Place London WIB IAR
The RAF Benevolent Fund Housing Trust Limlted Report and Financlal Statements 31 December 2023 Directorf Report The Directors. who are a150 the Trustee5 of the charitable company, present their report and financial starements for the year ended 31 December 2023. Principal activity The RAF Benevolent Fund Housln8 Trust Llmited (RAFBF Housing Trust Ltd) is a charitable company Ilmited by guarantee and is a wholly owned subsidiary of The Royal Air Force Benevolent Fund IRAFBFI. Its sole activity Is to hold and operate properties for beneficiaries of the RAFBF. The Company 15 flnanced and conirolled by the RAF8F and asslsrs In the atiainment of Its objertives by the purchase of properties for occupation by beneficiaries. These properties are let as renta15, where the rents charged take into account the means of beneficiarles and are ser based on a recognlsed benchmark, the Joseph Roundtree Foundation Living Rent. The Company takes responslbllity for insurance. external repairs and redecorations, and the preservatlon of the main structures and installations. Further details of the activitles and policies of the RAFBF and its subsidiaries are included in its Annual Report. a copy of which may be obtained by wrlting to the re8lStered office at the addres5 shown on pa8e 1 or by accessing it at the Fund's webslte Publlc beneflt As stated in the prlnclpal activity settlon, the RAFBF Hou51ng Trust Llmlted's sole actlvltyls to hold and operate properties for beneficiaries of the RAFBF. li exlsts ro provide security and support to parricularly vulnerable beneflciarles through the provbslon of bespoke houslng solutions. When revlewlng the Companls alms and obJectlves. and In planning future actlvitles and policies. the Directors have given careful consideration to the Charity Commission's general and supplementary guldance on public benefit and fee charging. The Company uses the published Joseph Rowntree Foundation's Minimum Income Standard figures to aSSlSt with assessing financial need. This provides a highly respected sector standard that represents the rninimum Income requlred to provide a socially Inclusive standard of living in the UK. In addition to this, the Company allows additlonal expendlrure for mortgage, rent, council tax. childcare and formal carer costs. Disability benefits are disregarded as income. Where a contrIbUtOn is invited towards the costs of occupying a residential property. the beneficlarys means based on the above standard are always considered. No eliglble member of the RAF Famlly is prevented from benefitlng from the Support of the RAFBF and this means that the rental income charged is considerably below the market rate. 2023 Revlew During 2023, ten propertles were purchased. three others adapted and five sold. Nine of the properties purchased enabled the relocation of existing occupants to more suitable accommodation and one supported a seNiceman and his family to relocate from Service Families Accommodation as a result of him being medically discharged due to disability resulting from his service. The purchase of a further three properties were awaiting completion at the end of the year followin8 the beneficiaries identifying Sultable propercies that would meet their needs. 2023 rental income wa5 £1 M 12022.. £1 Ml, with the considered application of welfare principles such as ability to pay.Joseph Rowntree Foundation Livin8 Rent calculation and Local Houslng Allowance rates being taken Snto account when calculating affordable rent.
The RAF Benevolent Fund Houslng Trust Limited Report and Financial Statements 31 December 2023 Future plans of the Company The Company intends to continue to manage a portfolio of properties in support of the beneficiaries of the PAF Benevolent Fund for the foreseeable future. The nei assetsof the Companyasat31 December2023were £14.7M12022- £14.7MI. £10.9M12022: £9.4M} was owed to the parent undertaking. Glven that the Company manages properties solely in order to support the beneficiaries of the RAFBF, the Trustees of the parent undertaking are committed to providing contlnued instltutional support to the Company in the form of an interest free facility for the foreseeable future. This means that whilst the debt is a short-term liability, the RAFBF will not be requesting repayment wlthin the next twelve months. On this basis the Directors have reviewed the RAFBF Housing Trust Ltd and consider that adequate resources continue to be available to fund the activities for the foreseeable future. The Directors are of the view that the Company is a golng concern. Organlsatlonal structure and governance The Directors of the Company shall at all time5 be not less than three and not more than Iwelve and shall include the Controller of the RAFBF ex-officio, who shall be the Chair of the 8oard and shall also Include such members of the Major Grants Committee of the Fund as shall from tlme to time be norninated by the RAFBF. With rhe exceptlon of the Controller, the Directors shall retain offlce only untll the nexi AGM but will then be eligible for re-electlDn. The business of the Cornpany15 managed by the Directors but may be delegated to any Dlrector andlor employee of the RAFBF. The Company has no ernployees but pays a charge for the use of RAFBF staff to carry out operational activlty. The Directors may appoint any member of the Company as a dlrector esther to fill a casual vacancy or by way of addition to the Directors. Any member 50 appointed shall retain office only until the nexc AGM but w511 then be eliglble for re-election, Major rlsks and uncertalntles Trustees of the RAFBF have overall responsibility for managlng risks faced by the Charlty and Its subsldiary entities. Therefore, the identification of major risk5 a550Clated with the Housin8 Trust operation is carried out as part of the rlsk management proces5 of the RAFBF. The major rlsks, as identified by the Trustees. have been revlewed and appropriate mitigatlon measures put in place to manage downside risks and take advantage of opportunities presented. The major risks identified as having the potential to affeci the repuiation and subsequent successful performance of the RAFBF and hence the RAFBF Housirig Trust Ltd alon8 Wlth miti8atiri8 actions are: Income and Flnanclal Sustalnablllty: This can be caused by the Inability to generate sufficient income to cover increasing inflation driven costs on a consistent basis. Other underlying risks are the volatility on the propety market that may lead to properties belng vacant for extended periods of time and a potential change in Government that brings more stringent Energy Performance Certificate IEPCI measures. This risk is being rnitigated by an ongoing review of the Housin8 Trust operating model. including its purpose, decision making, cost driver5 and rent setting benchmark. Agreed actions will be implemented on a phased basis, premised on the underlying principle that the Trust exists to provide support to particularly vulnerable members ofthe RAF Family. EPCwork is now part of the Compan5 regular maintenance programme and
The RAF Benevolent Fund Housing Trust Limlted Report and Financlal Statements 31 December 2023 will be included in annual budgets. The RAFBF continues to provide institutional support to the Housing Trust. Meeting the needs of the RAF Family: This can be caused by the failure of third partie5 to deliver timely and quality services on behalf of the Housing Trust or the RAFBF, who are then not able to carry out this work to an acceptable standard; and not being innovative and responsive to the changing needs of the RAF Famlly. This risk is mitigated through the monitoring done by an Operations Board. regular reviews of surveyor performance and engaging with partner organisations to foster wider sector Insight. Safe8uardin8 and the duty of care: This can be caused by an activity that gives rise to a safeguarding Incldent in which a beneficiary or member of staff is adversely affetted by the actions of the Company or the parent Charity. This risk is being mitigated by ensuring that we have robust safeguardSng policies, procedures, and trainlng plan5. There Is a Safeguarding Cornmittee that maintain5 oversight and a desi8nated Safeguarding lead Trustee on the Board of the RAFBF and assurance from independent audSts. Governance and compliance wlth regulatory requlrements: This can be caused by stricter regulation on hosing providers and lor Snsufflclent awareness of regulation changes across all nation5. This Is mitigated by using the service5 of duly qualified surveyors and rnaintaining membership of the Cobseo Housln8 Cluster and Scottlsh Landlord Assoclations. Continuous monitorin8 of le8islation around cllmate change mea5ure5 and Including energy efficiency In routine maintenance programme. Reserves pollcy As a wholly owned subsldlary of the RAFBF the resee$ of the Cornpany are considered alongslde the Reserves policy of the parent charity, Free reseNes are the resources the Company has avallable to spend on revenue expendlture In1Sne with Its purposes once it has met its commitment5 and covered its other planned expenditure. The RAFBF Housing Trust Ltd has free reserves of £0.8M as at 31 December 2023 12022.. £1.6MI. This amount 15 represented by net current assets excluding the amount owed to the parent charity. On the basis of the continued support from the parent charlty, the Directors have decSded that the minimum level of reserves held should be sufficient to cover about six month5 operating cost5 to fund the on-going programme of maintainin8 the CoMpanS property portfolio. The rninimum requirement on 31 December 2023 wa5 £0.5M12022'. £0.7M}. The Reserves policy is reviewed each year by the parent charity as part of the annual planning process. Performance against rhe reserves pollcy Is monitored durlng the year as part of regular financlal management and 15 reflected as a key perforrnance indicator at Board level. Full detai15 of the parent charity financial position can be obtained from the Annual Report and Accounts which are available on request from 67 Portland Place, London, W1 B 1AR orfrom
The RAF Benevolent Fund Houslng Trust Llmlted Report and Financial Statements 31 December 2023 Going concern The Directors have given consideration to the Company reporting a net current liability Posltion as a result of the lar8e balance owed to the parent undertaking. However, the Company is assured that the Royal Air Force Benevolent Fund ha5 no intention of calling upon this debt and has received written confirmation to this effect. The Directors have also given con51deration to the external economic environment, the financial strength of the parent undertaking and Income and expenditure forecasts, and concluded that the Company will be able to continue to operate for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financlal statements. Flnanclal revlew The Statement of Financial Activities1SOFAI for the year15 Set out on page 11 of the flnancial statements and shows a surplus of £62K12022'. £1.3MI. Income Income 15 made up of rent received, the proflt on the dlsposal of properties. bank interest and legacy Income. There was a £1.4MI 58% decrease in income from £3.3M in 2022 to £1.9M in 2023. due mainly to the £1.4M decrease in the profit on disposal of properties because the number of properties sold was lower, five in 2023 compared to twelve in 2022. Expendlture Charltable expendlture decreased from £2M in 2022 to £1.8M In 2023. Thls was primarily due to a decrease in the costs incurred in relation to repairs and renewals decreaslng from £840K In 2022 to £692K in 2023. Tanglble flxed assets As at 31 December 2023, the Trust owned 198 propenies12022.' 1931. During the year, 10 properties were purchased12022.' 21 and 5 were sold12022: 121, resulting in a net increase of 5 properties. Total cost of new properties wa5 £3.38M12022'. £2.1 Ml plus £O.I M12022'. £0.3MI on adaptations. Sale5 proceeds of properties amounted to £1.3M12022.' £3.8MI and profits on these sales were £0.8M12022,' £2.1 Ml. The net book value of propertles held was £24.7M at 31 December 2023,12022: £22.4MI. Reported values are based on hlstorical COSL but the Directors recognlse that the total marker value wlll in all probability be materially higher. Dlrector5 The Directors during the year, and up to the date of approval of the financial statements. are as shown onpage1. Governlng DocumentThe objects forwhich the Company 15 established are Set out in the Memorandum of Association dated 2 June 1972. The Articles of Assoclation of the Company were approved by a written resolution by the Director5 on 24June 2003.
The RAF Benevolent Fund Housing Trust Llmlted Report and Flnanclal Statements 31 December 2023 Statement of Dlrectors, responsibilities The Directors (who are also Trustees of the RAFBF Housing Trust Ltd for the purposes of charity lawl are responsible for preparing the Directors, report and the financlal statements In accordance with applicable law and United Kingdom Accountin8 Standards (United Kingdom Generally Accepted Accounting Practice). Cornpany law requires directors to prepare financial statements for each flnancial year which give a true and fair view of the state of the affairs of the charitable company and of the outgoing resource5 and application of resources, including the income and expenditure, of the charitable company for rhat period. In preparing these financial statements, the Directors are required to: selett sultable accounting policies and then apply them consistently,. obseNe the methods and principles in the Charltles SORP IFRS1021; make judgernents and estimate5 that are reasonable and prudent,. state whether applicable accounting standards have been followed, subject to any materlal departures which are disclosed and explained in the financial statements,. and prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charitable company will contlnue Sn buslness. The Dlrectors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply wlth the Companies Act 2006, the Charities and Trustee Investment (Scotlandl Act 2005 and the Charities Accounts (Scotlandl Regulations 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable step5 for the preventSon and detection of fraud and other Irregularltles. In so far as the Directors are aware.. there is no relevant audit informatlon of whlch the charitable companys auditor is unaware; and the Directors have taken all steps that they ought to have taken to make themselves aware of any relevant audlt SnformatSon and to establish that the auditor15 aware of that information. This report has been prepared In accordance wlth rhe special provisions relating to small companies withln Part 15 of the Companies Act 2006. By order ofthe board Dn 28 May 2024 Vlctorla Aklnboro Secretary Date..
The RAF Benevolent Fund Housing Trust Limited Report and Financial Statements 31 December 2023 Independent auditors report to the members and the dlrectors of The RAF Benevolent Fund Housing Trust Limited Opinlon We have audited the financial statements of The RAF Benevolent Fund Housing Trust Limited for the year ended 31 December 2023 which comprlse the Statement of Financial Activities, the Balance Sheet. the Statement of Cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework thai has been applied in their preparation is applicable law and United Kingdom Accounting Standard5, including Financial Reportlng Standard 102. the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdorn Generally Accepted Accounting Practice). In our oplnlon the financial statements: give a true and falr view of the charitable companls stste of affairs as at 31 December 2023 and of its incoming resources and application of resources, including Its Income and expendlture, for the year then ended.. have been properly prepared in accordance wlth Unlted Klngdom Generalty Accepted Accounting Practice., and have been prepared in accordance wlth the requirements of the Companles Aci 2006, the Charities and Trustee Investment IScot1andl Act 2005 and regulation 8 of the Charltles Accounts (Scotlandl Regulatlons 2006 las amended). Ba51s for oplnlon We conducred our audit In accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditorfs re5ponsibilitie5 for the audlt of the flnancial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audii 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 requirements. We belleve that the audii evidence we have obtained 55 sufflcient and approprlate to provide a basis for our opinion. Conclu51ons relatln8 to going concern In auditin8 the flnancial statements, we have concluded that the directors, use of the going concern basls of accounting in the preparation of the financial statements 15 appropriate. Based on the work we have performed, we have not identified any material uncertaintles relating to event5 or conditions that. individually or collecLively, may cast significant doubt on the charitable company's abillty to continue as a going concern for a period of at least twelve monihs from when the financial statements are authorised for issue. Our responsibilitie5 and the responsibilitie5 of the directors with respect to going concern are described In the relevant sections of this report.
The RAF Benevolent Fund Housing Trust Limited Report and Financial Statements 31 December 2023 Other Informatlon The director5 are responsible for the other information. The other information comprises the information included in the annual reporL Other than the financial statements and our auditorfs report thereon. Our opinion on the financial statement5 does not cover the other information and. except to the extenr otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 mi5Stated. If we identify such material inconsistencies or apparent material rni55tatements, we are required to determine whether this give5 rise to a material rnisstaternent in the financial statements themselves. If, based on the work we have performed, we conclude that there is a materlal rnisstatement of this other information we are required to report that fact. We have nothing to report In thls regard. Other matters prescrlbed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit: the Information given in the Dlreciors, report for the financlal year for whlch the financlal statements are prepared is consistent with the financial statements,, and the Director5. Report has been prepared in accordance with applicable legal requSrements. Matters on whlch we are requlred to repart by exceptlon In the light of the knowledge and understanding of the charitable company and Its environment obtained In the course of Ihe audit, we have not identified material misstatements In the Dlrectors, Report, We have nothlng to report in respect of the following matters where the Companles Act 2006 and the Charltles Accounts (Scotland) Regulations 2006 la5 amended) require us to report to you if, in our oplnlon: adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us,. or the financial statements are not in agreement with the accounting records and returns,. or certaln dlsclosures of trustees, remuneration specified by law are not made., or we have not received all the information and explanations we require for our audlL or the directors were not entitled to prepare the financial Statements in accordance with the small companie5 regirne and take advantage of the small companies exemption in preparing the Directors, Report. Responslbllltles of direetors A5 explained more fully in the Statement of Directors, Responsibilities set out on page 6, the directors (who are also trustees of the charitable company for the purposes of charity lawl are responsible for the preparation of the financial statements and for belng satisfled that they give a true and fair view, and for such internal control as the dlrertors determine is necessary to enable the preparation of financial statements that are free from material misstatemenL whether due to fraud or error.
The RAF Benevolent Fund Housing Trust Limited Report and Flnanclal Statements 31 December 2023 In preparing the financial Statements, the direttors are responslble for assessing the charitable companrfs ability to continue as a going concern, disclosing, as applicable. matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the charitsble company or to cease operations. or have no realistic alternative to do so. Audltofs responslbilltles for the audlt of the flnanclal statements We have been appointed a5 auditors under the Companies Act 2006 and under the Charities and Trustee Investment (Scotlandl Act 2005 and report In accordance with regulatlons made under those Acts. Our objectives are to obtaln reasonable assurance about whether the financial statements as a whole are free from material misstatemenL whether due to fraud or error, and to 155ue an auditols report that includes our opinlon. Reasonable assurance is a high level of assurance, but is not a guarantee that an audlt conducted in accordance with ISAS IUKI wlll alway5 detect a materlal misstatement when it exists. Mi55taternents can arise from fraud or error and are considered material if, individualty or in the aggregate, they could reasonably be expetted to influence the economic deci5ion5 of users taken on rhe basis of these flnancial statement5. Irregularities, including fraud, are instances of non-compliance with laws and regulation5. We deslgn procedures In line with our responslbllltSes, outlined above, to detect materlal missratements In respect of irregularlties, Including fraud. The specific procedures for thi5 engagement and the extent to which these are capable of detecting irre8ularltle5, Including fraud are derailed below. Identlfylng and a5sessin8 risks related to Irregularities.. We assessed the susceptibility of the charltable companys financial statements to material misstatement and how fraud mi8ht occur, including through discussions with the directors, discussions within our audit team plannlng meetSng, updatlng our record of Internal controls and ensuring these controls operated as Intended. We evaluated possible incentives and opportunities for fraudulent rnanipulation of the financial statements. We identifled laws and regulatlons that are of significance In the context of the charltable company by discu55ions with directors and updating our understanding of the sector in whlch the charitable company operate5. Law5 and regulations of direct Slgnlficance In the context of the charitsble company include The Companies Act 2006, the Charities and Trustee Inve5tment1Scotlandl Act 2005, the Charities Accounts (Scotlandl Regulatlons 2006 (as amended) and guidance issued by the Charity Commission for England and Wales and the Office of the Scottish Charity Re8tslator. Audit response to risks identified: We considered the extent of compliance with these laws and regulatior15 as part of our audit procedures on the related flnancial statement items including a review of financial statement dlsclosures. We reviewed the charitable companls records of breaches of laws and regulations, minute5 of meetin8s and correspondence wlth relevant authorities to identify potential materlal misstatements arising. We di5CUssed the charitable companrfs policies and procedures for compliance with laws and regulatlons with members of management responsible for compliance.
The RAF Benevolent Fund Housing Trust Limited Report and Financial Statements 31 December 2023 During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, 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 bLJslness. We assessed whether judgements made in making accounting estimates gave rise to a Possible indication of management bias. At the completion Stage of the audit. the engagement partnerfs review included ensurin8 thac the team had approached their work with appropriate professional sceptlclsm and thus the capacity to identify non-compliance with laws and regulations and fraud. There are inherent Ilmitations in the audit procedures described above and the further removed non- compliance with law5 and regulations is from the events and transactions reflerted In rhe financial statements, the less likely we would become aware of it. Also, the risk of not detectln8 a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may Involve dellberate concealment by, for example. forgery or inientional misrepresentaiions, or through collusion. A further description of our respon51bilities is available on the Financial Reporting Council's webslte at: Thi5 description forms part of our auditorfs report. Use of our report Th55 report 15 mède solely to the charitable companys members, as a body, in accordance with Chaprer 3 of Part 16 of the Companles Act 2006, and to the charltable companys dlrectors as a body, In accordance with Regulation 10 of the Charities Accounts (Scotlandl Regulations 2006. Our audit work ha5 been undertaken so that we might state to the charltable companls members and directors those matters we are required to state to thern in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company, the charltable companvs members and dlrectors as a body, for our audit work, for this reporL or for the opinions we have formed. Claire Wills (Senior Statutory Auditor) for and on behalf of Saffery LLP 71 Queen Victorla Street London ECV4 4BE Chartered Accountants Statutory Audltors Oate: 19 Ji zoi4 Saffery LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 10
The RAF Benevolent Fund Houslng Trust Llmlted R•port and Financial Statements 31 December 2023 STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2023 (Incorporatlng Income and expendlture account) 2023 2022 Income from: No(e Legacies 34.868 117,779 Charltable activitles 1,076,657 998,221 Other octlvitles 799,262 2,159,048 Total Income 1,910,787 3.275,048 Expendlture on charltable activity 11,849,138) 11,985,823) Net Income 61,649 1,289,225 Net movement In funds 61,649 1.289,225 Total funds brought forward 14,662,567 13.373,342 Total funds carrled lorward 14.724.216 14.662.567 All funds are unrestrlcted. There are no reco8nlsed gains or105ses in either period other than as di5c105ed above. All incoming and outgoing resources arise from continuing activltles.
The RAF Benevolent Fund Housing Trust Limited Report and Financial Statements 31 December 2023 BALANCE SHEET as at 31 December 2023 2023 2022 Note Flxed assets Tangible asseis 24,742.138 22,442,112 Current a55ets Debtors 123.980 917.365 1,041,345 89,485 1,957,148 2,046,633 Cash at bank and Sn hand Credltors., amounts falling due wlthSn one year 111.059,267) {9,826,178) Net current Ilabllltles 110,017,922) {7,779,545) Net assets 14.724.216 14.662.567 Unrestrlcted seneral funds 14.724.216 14.662.567 The notes on pages 15 to 20 form part of these financial statements. These financial statements have been prepared in accordance with the provisions appllcable to companies subjeci to the small companie5, regime. Approved and authorlsed for Issue bythe Board on 28 May 2024 and Signed on its behalf by.. Victoria Aklnboro Dlrector Date: 2J+"Y Company reglstratlon number.. 01058896 12
The RAF Benevolent Fund Houslng Trust Llmlted Report and Flnanclal Statements 31 December 2023 STATEMENT OF CASH FLOWS For the year ended 31 December 2023 2023 2022 Cash flows from operating activities Net cash inflowllourfiowl from operating activitie5 1,178,306 12,186,468) Cash flows from Investlng actlvltle5 Proceeds from sale of tanglble fixed assers Payments to acquire tangible fixed as5et5 Net cash provided by investing activities 1,299,732 13,517,822) 12,218.0901 3.756.029 1883,8721 2,872,157 Change in cash and cash equivalents Cash and cash equlvalents at beginning of year Cash and cash equlvalents at end of year 11,039.7831 1,957,148 917.365 685,688 1,271,460 1.957.148 Reconclllatlon of net Income to net cash flow from operatlng actlvltles Net income for the year ended 31 December Adjustments for 61.649 1,289,226 Depreciation charges Proflt on disposal of fixed a55ets Decreasellincreasel in debtors Increaselldecreasel in creditor5 667,336 611,499 1749,2721 12,139,941) 134.4951 173,7011 1,233,088 11,873,551) 1,178,306 12,186,468) Analys1$ of cash and Cash equlvalents Current account 917.365 1.957.148 Analysi5 of chan8e5 In net debt Current account: As at 1 January 1.957,148 1,271,460 Movement In year 11,039.783} 685,688 As at 31 December 917.365 1.957.148 13
The RAF Benevolent Fund HouslngTrust Llmlted Report and Flnanclal Statements 31 December 2023 Notes to the Flnanclal Statements For the year ended 31 December 2023 1. Accountlng Policies Accountlng conventlon These financial statements are prepared on a 80ing concern basls, under the historical cost convention. The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021. The Charitable Company 15 a public benefit entlty for the purposes of FRS 102 and therefore the Charity also prepared its financial statements in accordance with the Statement of Recommended Practice applicable to charltles preparSng thelr accounts in accordance wlth the Financial Reportin8 Standard applicable in the UK and Republic of Ireland (The FRS 102 Charities SORPI, the Companies Act 2006, the Charities Act 2011 and Charitles Accounts1Scotlandl Regulations 2006 as amended by The Charities Accounts (Scotlandl Amendment (No. 21 Resulotions 2014. The prlnclpal accountlng policies adopted In the preparation of the financial statements are set out below. Golng concern The Directors have a55essed whether the use of the going concern basls Ss appropriate and have consldered posslble events or conditions, includlng the impatt of the economic volatility and high Interest rates that might cast significant doubt on the ability of the Company to continue as a 80ing concern. The Directors have made this assessment for a period of at least one year from the date of approval of the flnanclal statements. The most signiflcant asset5 Included on the Companys balance sheet are fixed assets. Ehe purchase of which is facilitated by a loan from the parent charity, Royal Air Force Benevolent Fund {RAFBFI. Amount5 due to the RAFBF are unsecured, interest free. have no fixed dale of repayment and are repayable on demand. The Dlrertors have given consideratlon to the Company having reported a net current liability position as at 31 December 2023 as a result of the large balance owed to RAFBF. However, the Trustees of the RAFBF are committed to providing continued instltutional 5UPPOrt to the Company for the foreseeable future and have provided written confirmation to the Directors of the Company to this effect. The group is in a healthy posltion at 31 December 2023 with net current a55ets of £13.3M including cash balances of £6.9M. The Directors therefore have a reasonable expectatlon that the Company has access to adequate resources to continue in operational existence for the foreseeable future and continue to adopt the going concern basis in preparing financial statements. Rental Income Rental incorne is accounted for on the basis of amounts received in the accounting period. In the opinion of the Dlrectors. this policy is appropriate in view of the uncertainty over whether the rental income, which is not a contractual commitment, can be collected. 14
The RAF Benevolent Fund Houslng Trust Llmlted Report and Financial Statements 31 December 2023 Other Income Other income consists of the net reallsed gain on the sale of fwe properties (12 sold in 20221. Flxed assets and depreciation Fixed assets that cost more than £5.000 are capitalised and included at C05t, Including any incidental expense at acquisition. Depreciation 15 provided on freehold and long leasehold properties at rates calculated to write off the cost less estimated residual value, based on prices prevailing at the dare of acquisition, of each asset evenly over its expected useful life as follows: Freehold buildings Leasehold buildin8S over 50 years over the perlods of the leases or 50 years, if shorter Freehold land is not depreciated, A full year of depreciation is charged in the year of acquisltlon and none In the year of disposal. The carrying values of tanglble fixed assets are revlewed for Impairment in perlod5 if events or changes In circumstances indicate the carrying value may not be recoverable. Expendlture All resource5 expended relate to the one charitable actlvity undertaken by the Company. Property repair and renewal expenses are wriiten off to the Statement of Financial Activltles a5 they are incurred. The Company has no employees but pays a char8e for the use of RAFBF staff to carry out the operatlonal activity. Recognltlon of Ilabllltles Expenditure approved for payment but not paid is recorded as a Ilabillty in the balance sheet. Current liabilitles consist of amounts expected to be settled within 12 months from the balance sheet date. Current Ilabllities include payTnent5 due to the parent undertaking which is technically payable on demand although the Trustees of the RAFBF have offered assurances of thelr continued support to the Company in the form of interest free finance for the foreseeable future. Cash and cJ5h equlvalents Cash and cash equivalents include cash in hand, deposits held at call vvith banks. and other 5hort-term liquid investments with original maturlties of three months or less. Taxatlon All the Company5 income is applied for charitable purposes and therefore the Company 15 exempt from Corporation Tax. The Company is not registered for VAT and so all expendlture is shown gross. 15
The RAF Benevolent Fund HouslngTrust Llmited Report and Financial Statements 31 December 2023 Financlal Instruments Basic financial instruments are measured at amortised COSL Crltlcal accountlng estlmates and areas ofjudgement In preparing financial statements it is nece55ary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financlal statements. In the view of the Direttors in applying the accounting policies adopted. no judgements were required that have a significant effect on the amounts recognised in the financial staternents except depreciation, nor do any estlmates or assumpiions made carry a 51gnificant risk of material adjustment in the next financlal year. 2. Income 2023 2022 Legacies Rental Sncome Bank interest Profit from the d15posal of properties 34,868 1,076,657 49,990 749.272 1,910.787 117,779 998.221 19,107 2,139,941 3.275.048 3. Resources expended on charftable actlvltles 2023 2022 General rates Insurance Repairs and renewals Occupational therapist fees Legal fees Properry management fees Lease amortisation 9,038 46,180 692,022 7.579 8,242 232,101 12,619 654,717 9,240 172.580 4,820 1.849.138 11,692 39,032 840,152 11,500 2,708 269,340 12,619 598,880 8,520 172,023 19,357 1.985.823 Property depreciation Audit fee5 Staff costs Others 16
The RAF Benevolent Fund Hou5in8 Trust Limited Report and Financial Statement$ 31 December 2023 stsff costs include: 2023 2022 Wages and salaries Pension costs Social security 134,863 23,231 14,486 172.580 134,374 22,824 14.825 172.023 Stsff c05t5 relate to five people employed by the RAFBF and represents amounts recharged based on their time spent on the Cornpanys operatlonal activlty. Dlrector$' remuneratlon None of the Directors has received any rernuneration or relmbursement of expenses from the Company. The Directors are deemed key management personnel. Related party transactlons The Company maintain5 an inter-company balance with the RAF Benevolent Fund, Its parent undertaking nd the balance owed to the RAF 8enevolent Fund as at 31 December 2023 was £10.9M12022.' £9.4MI. The movement during the year consisted of payments by the RAF Benevolent Fund for variou5 property maintenance costs and staff costs recharged. Mosr of the dlrectors are senlor executive staff at the RAF Benevolent Fund. There are no other related party transactions thai require disclosure. Tanglble flxed assets Long leasehold propertles Fr••hold propertles Total Cost at 1 January 2023 Additions durlng the year 29,944,007 630.938 30,574,945 3,517.822 3,517,822 Dlsposals durln8 the year 1726,0051 1726.0051 Cosi at 31 December 2023 32,735.824 630,938 33,366,762 Depreclatlon at 1 january 2023 DepreciatSon for the year Depreciation on disposals durlng the year 7,894,950 654,717 1175,5451 237.883 12,619 8.132,833 667,336 1175,5451 Accumulated depreciation at 31 December 2023 8,374,122 250.502 8,624,624 Net book value= At 31 December 2023 24,361.702 380,436 24.742,138 At 31 December 2022 22,049.058 393.054 21442,112 17
The RAF Benevolent Fund Housing Trust Limited Report and Flnanclal Statem•nts 31 December 2023 The Directors recognise that properties are recorded at historical cost le55 any charge5 for depreciation and therefore the market value could be materially different. Debtors 2023 2022 Accrued income- legacy Prepayment HMRC Other 36,814 35,740 34,516 3,348 123.980 47,297 40,829 1,359 89.485 Credltors: amounts falling due wlthln one year 2023 2022 Trade credltors The Royal Alr Force Benevolent Fund - Gulf Trust Interest free finance provided by the RAF Benevolent Fund 105,204 93,124 10,860,939 11,059,267 328,534 74,360 9,423,284 9.826.178 Amounts due to 8roup undertakings are unsecured. interest free, have no flxed date of repayment and are repayable on demand. However, the Tru5tee5 ofthe Royal Air Force Benevolent Fund are committed to providing continued Institutional support to the Company for the foreseeable future. Parent undgrtaklng In the Dlrectors. opinion. the ultimate parent undertakin8 is The Royal Air Force Benevolent Fund, incorporated by Royal Charter, and registered in England and Wales {charity number 10810091 and Scotland Icharity number: SC0382181. Copies of its group flnancial statements, which include the results of the Company, are available from 67 Portland Place, London, W1B 1AR. 10. Guarantee In the event of the Company being wound up. each director Is liable to pay £1. 18