Charity number.. 297897 Company number: 2109510 Army Flylng Museum Llmlted IA Company Ilmlted by guarantee) Trustees, annual report and Consolidated flnanclal ateMentS For the year ended 28 February 2023 Compass Accountants Llmlted Chartered Accountants and Statutory Audltors Venture House The Tannerles East Street Tltchfleld Hampshlre P014 4AR
Army Flying Museum Limited Company number: 2109510 Contents Page Legal and administrative information Chairman's Report Trustees, annual report (incorporating the Strategic Report) 3-13 Structure. governance & mana8ement Strategic report Objectives & activitles Achievements & performance Financial review Plans for future periods Principal risks & uncertaintie5 Statement of Trustees, responslbilities 14 Auditorfs report to the Trustees 15-17 Consolldated Statement of financial actlvltles 18 Consolidated balance sheet 19 Cash flow statement 20 Notes to the flnanclal statements 21-33
Army Flylng Museum Limited Company number: 2109510 Legal and Admlnlstrailve Informatlon Charlty number 297897 Company number 2109510 Reglstered Office Middle Wallop Stockbrld8e Hampshlre 5020 80Y Chlef Executlve Lucy Johnson Trustees Sir Gary Coward Ichalrmanl Colin Sibun (Vice Chairman) Carollne Hopklns (Treasurer) Phillip Webb (resigned 19 April 20221 Rhonda Smith Paul Edwards Paul Beaver Colonel Jullan Facer Colonel Robln Mellin8 (resigned 15 February 20231 Warrant Officer I Paul Dockrell David Short James Johnson Neil Sexton {appointed 20 January 2023) Company Secretary Andrew 51mkSns Senlor Statutory Audltor Kerry Lawrance FCA Audltors and Accountants Compass Accountants Llmlted Venture House. The Tannerles East Street Titchfield Hampshire P014 4AR Bankers Royal Bank of Scotland Holts Farnborough Branch Lawrle House, Victoria Road Farnborough Hampshire GU14 7NR Pase I
Army Flyln8 Museum Llmlted Company number: 2109510 Report of the trustees (Incorporatlng the Dlrectors, report} for the year ended 28 February 2023 Chairman's Report 2022 has been a challengin8 year with many external factors impacting on the performance of the Museum. The economlc crisis, the war in Ukraine and generol rising cost5 have all had an effect and meant we had to adjust our budget and forecasts mid-year. However, 2022 also saw us record our highest number of visitors in over 10 years and deliver another sold-out Wallop Wheels & Wings. There are many positives from thi5 year that bode well for the future. After the Covid-19 pandemic, we made the decision to offer every visitor an annual pass with their admission (rather than it being Gift Aid dependent). This ha5 resulted In a far higher number of return visitors over the last 12 months than we have seen previously, with famllies taking advantage of the ability lo return in multiple school holiday5. Thi5 has allowed u5 to build better relationships with our visitors and has had positive impact on our reputatSon, partlcularly wlth plnch currently being felt on people'5 leisure budgets. We are becomln8 increasingly known for our welcoming Staff and our additional activitie5 and word of mouth 15 helplng us attract new visitors. However, this has affected our income targets as we now need to focus on engaging new visitors from a wlder catchment area which is one of our prioritle5 for the comln8 year. On 02 July 2022 we delivered the second Wallop Wheels & Wings, our flagshlp event, at full capacity. This year saw 3,775 people attend as visitors (with an addltional 500 attending as car or aircraft exhibitors) and excellent feedback received to help inform our growth for 2023. Thls year has also seen the return of ourvolunteering programmes and It has been fantastlc to welcome back our volunteers across En8ineerlng, Archlve, Educatlon and Tour Guide5. We have over 40 active volurbteers, all of whom brln8 a wealth of knowledge and experience to the Museum and really contrlbute to the Museum's alms. Fundraising continue5 to be a key part of our operatlon and our Corporate Partnership scheme is proving to be popular. We were dellghted to welcome Leonardo on board as a Corporate Partner and worked wlth them to deliver two STEM days at the Museum for 11-14 year olds, plus an evenin8 sesslon for local Scout/Guide groups. We are looking forward to developing this partnership further over the comin8 year. Another area of museum operations that has significantly improvedls corporate hlre and public events. We have seen a 20% increase on corporate bookinBS in terms of bud8et and this trend Is contlnuln8 into thls year with new clients approaching us regularly. Our online lecture programme ha5 now turned to a hybrid lecture programme with our popular monthly lecture5 belng broadcast online as well as to a live audlence In Museum. Education vlsits have seen an increase too, and our school holiday activities continue to Bather momentum wlth the programme being advertised at least two months in advance. However, the climate 15 challenging, and museums are difficult to make profitable. We contlnue to work IuwdlL15 beLUITiiri¥ Ili¥ first UK rnu5eum to display an Apache, and hope to be able to install one by 2024. Thls is key to our next stage of development in terms af visitor attraction and the contlnuatlon of the Army aviation story. Slr Gary Coward Chairman Page I
Army Flyln8 Museum Llmlted Company number: 2109510 Report of the trustees Ilncorporatln£ the Dlrectors, report) lor the year ended 2Wh February 2023 The Trustees present thelr report and the financial statements for the year ended 28, February 2023. The Trustees, who are directors of company for the purposes of company law and, who seNed during the year and up to the date of this report are set out on page l. The Trustees have had due re8ard to the guidance issued by the Charity Commisslon on Public Benefit. Strurturei aovemance and management Go¥ernlng Document The Museum Is governed by Its Memorandum and Articles of Association. Trustees are selected by the existing Board from peisons having an interest in the story of 8rltlsh Army flylng, herltage. conservation and the local communlty and who have a particular skill or qualification which will add to the combined skills and experience of the Board of Director5. Trustees are recruited to fill 8aps in specific skill areas within the Board. The Army Flying Museum Limited I'the Museum'l wa5 incorporated as a private company Ilmlted by guarantee, and without share capital, in March 1987 when the exhiblts of the former AAC Museum were donated to it as a basis for publlc dlsplay. The company Is a150 a registered charlty Ino. 2978971. AppDlntment ol Trustees The artlcles provide for the ex-officio appointment of 3 servlng AAC officers as trustees. Remainin8 Trustees are recruited through advertising or recommendations. All trustees are interviewed for 5Uitability before appointment. Selected trijstees are also Directors of the Army Flying Museum Trading Company Limited, the Charity's 100% owned subsidiary. The Tradin8 Company carries out tradln8 actlvltles to generate profits that are Gift Aided to the Museum. The Museum is the ultlmate holding company of the Trading Company. Whlle the Museum e¥erclses responsibility as shareholder of the Army Flyin8 Museum Trading Company Llmited. the Tradln8 Company board is solely respon51ble for all tradin8 decisions. Each trustee's liabi1Sty in the event of liquidation of the trust is limited to £1 In accordance with Memorandum of Assoclatlon. Inductlon and Tralnlni Newly selected trustees are briefed by the Chairman and CEO before taking up their appointment and participate in annual Board Trainlng. Governance arrangement5, the Subcommittee structure, and the role and conduct of trustee5 IS the subject of a comprehensive paper that Is based on Charlty Commission, and other guidance and which is available to all trustees and issued to new trustees before taking up their appointment. The oblects for which the Museum 15 established are to advance the education of the public primarily, but not exclusively, by the provlsion of a public Museum recording and exhibiting all a5pect5 of flying in the British Army both past and present. Arrangements For Setting Pay and Remuneration ol Key Management Personnel Rates of pay for newly recruited staff are determined through analysis of the labour market for museum staff and affordability. Across the board annual pay increa5e5 are not awarded autornatically, but according to affordability and included in the forecast budget which is subject to Board approval before the start of the financial year. Individual staff members can be awarded modest increa5e5 by the CEO in recognition of outstanding performance or other exceptional circumstances. Pa8e Y
Army Flylng Museum Limited Company number,, 2109510 th Report of the trustees Ilncorpovatlng the Dlre¢tors' report) for the year ended 28 February 2023 Publlc Benefit Directors consider that they have complied with the dutie5 expre55ed in Sedion 2llllbl of the Charities Act 2011 to have due regard to public benefit guidance as published by the Charities Commission. The activities undertaken by the museum throughout the year reached a $18nificant audlence of all ages. The Museum has provided a seNice of great public benefit, offering an educational. enjoyable and Satisfying experience through its di5play5. events and internet presence. Strategic Report Museum activlty over the last 12 months has been focussed on the recovery from the Covid-19 pandemlc and managing the changes in consumer 5pendinB. Visitor numbers are up on last year but conslst of more free admlsslons than previous years. Tradin8 activity this year was slightly better than forecast but expendlture costs have increased more than anticipated meaning activlties have been less profltable than expected. Slgnificant increases have been seen In corporate hlres and public event attendees. The focus thls year ha5 been on consolidating the work carried out durin8 Project Eagle and embeddin8 the new practice5. There has been a huge amount of change over the last five years and It has been Important to ft)cus on the day to day operat5ons for a period of time, Objectlves and actlvltles The oblect for which the Museum was establlshed Is.. 'to advance the education of the publlc prlmarlly but not exclusively by the provision of a public museum recording and exhibiting all a5pect5 of flying in the British Army both present and past,. In addition to thls charltable oblect, the Army sets objectives for its museums that include.. Malntain and enhance the Army's connection with society Present the country's military herltage and provide an academic research resource Contrlbute to the education of childTr and adults Including educational outreach and support for the National Curricula Educate, train and Inspire the current generatlon of service men and women. Mlsslon. Vlslon and Values Our M1551un Is: We tell the story of Brltish Army Flylng, Our Vlslon Is: Our vision is.. a sustoinable visitor attraction and heritoge cu5todion of nutionulsignificance. Pa8e 4
Army Flylng Museum Limited Company number: 2109510 Report of the trustees lincorporating the Director5, report) for the year ended 28 February 2023 Ourvalues are: Enterpri51ng Innovative Focu55ed Inspirin8 Collaborative Inclusive Strategy Mana8ernent and Strateglc Plan The Museum's Strategic Plan is revlewed and approved by Dlrectors annually In March for the following year and covers a period of 5 years. The strate8ic aim is to underpln future viability by developing a programme of continuous improvement to the museum's Visitor Offer. This aim is delivered throu8h a number of balanced strateglc aims, operational and development objectives contalned within the Plan. In early 2022 as a result of the challen8in8 economic climate, it was agree(I that it would be necessary to restructure operatlons in order to reduce stafflng costs. An area of operation5 was identified as being able to be restructured and the exercise resulted In two redundancles and a 5% reduction in 5alarle5 expenditure. Slgnlflcant Actlvltles Undertaken Project Ea8le-the Development of the Museum. Phase I Ithe building of the Army Flyin8 Memorlall was completed In September 2017. Phase 2 Ithe modernisation of the Museum) was completed In April 2019 and the Actlvlty Plan wascompleted in December 2021. Phase 3 Ithe future expanslon of the Museum) is bein8 consldered by the 8oard of Trustees In their strate8iC revlew for 2023-2028. Beyond Project Eagle Project Eagle concluded in December 2021. Followln8 thls investment. the Museum hos made 518nificant progre55 In non-project related activities over the last 12 months. In particular: Media- our social media presence continues to 8row and is summarised below.. MEDIA Asat 2810212023 5,259 ii,iii 3,576 321 18.895 A5at 3010412022 4,814 9,277 3,053 176 15,828 % Change over year 9.2% 19.8% 17.1% 82.3% 19.3% Twitter Followers Facebook Followers Instagram Linkedln Mailing List pe5
Army FlyinE Museum Limited Company nurnber: 2109510 Report of the trustees Ilncorporatlng the Directors, report) for the year ended 28 February 2023 Ternporary Exhlbitions We have held 3 temporary exhibitions thls year plus three onllne exhlbltions. We also loaned out two artefacts to the Fashion and Textile Museum in London. Physlcal exhlbltlons: 13 to 31 August & 01 Oct to 30 Nov . 'Weather and Aviation, oi to 30 September. Caught on Camera: 65 Years of the Army Air Corps, 01 December to date. Palaces for the People.. Prefabs of the Temporary Housing Programme 1944 to 1948, Loaned Item$ 01 Aprll to 04 September: Two artefacts dlsplayed at the Fashion and Textile Museum, London, as part of 'Crown to Catwalk- 150 Years of the Royal School of Needlework.. On15ne exhlbltlons: From 02 Aprll: The Falklands War, From 03 October: Blo8 Post on website. Agrlculture to Alrfleld: A H55tory of Middle Wallop Airfield up to 1939 Part I, From 24 October: Blog post on website, Agriculture to Airfleld: A H55tory of Middle Wallop Alrfield up to 1939 Part 2, Ah1ve Since the development of the new Archlve through Project Eagle, we have noticed an increase in enquirie5 and have done a lot of work to process some of the inherited backlo8 in catalo8uing. The AAC have also provlded fundin8 to support the employment of an Archive Assistant and the team work closely wlth HQ AAC to ensure the recordin8 of course hi5torie5. 113 enqulrles and 6 physical visits 2 blog posts and 3 articles Updatlng of the Post WW2 Campalgn Screens Catalogued large portion of donatSon backlog whlch stretched to the 1990s to Box Level 109 Donotion5 catalogued since Apr 2021 A significant number of oral history recordin8S We We also 5ucce55ful in gettin8 8rant fundin8 from AIM for an audit of the Archive's negatlve/photographlc collections. Educatlon and Learnlng In terms of Education, there has been a slow recovery of in-person vislts over the last 12. months: 29 schools came on trips to the Museum- 1,043 pupils We hosted two regular work experience placements in conjunctlon wlth Grateley School and Sparsholt College (both college age). Pa8e 6
Army Flying Museum Limrted Company nurnber: 2109510 Report of the trustees Ilncorporatln£ the Dlrectors, report) for the year ended 2*h February 2023 School Hollday Famlly Activitles Our school holiday activities remain popular, and the programme is developed in conjunction with the curatorial and marketlng teams. We know that more famllies are visiting on a regular ba515 to join in with these, 50 we make sure the programme changes each holiday. Easter Holidays 2022.. 523 participants May Half Term 2022: 256 participant5 Summer Holidays 2022.. 1,672 participants October Half Term 2022.. 558 partlclpants Christmas Holidays 2022.. 467 participants February Half Term 2023.. 561 partScipants Outreach Outreach has been firmly embedded in the museum operations now, although we were unable to recruit replacement Outreach Officer earller thls year. In the interim, member5 of the Museum team covered the various activities. The followlng Outreach events took place: Youn8 Eagle$ Youth Group sessions lin paitnership wlth the Army Welfare Service): No of Youn8 Eagles sessions.. 8 sessions No of Youn8 Eagles porticipant5.' 160 participants Pro-S¢hool Pll¢ts (sessions for under-ss and thelr parenvcarerl No of Pre-school Pilot sessions.. 6 sessions No of Pre-school Pilot participant5.' 90 participants Scout/Gulde 8roup$ etc and the number of partlcipants Museum visits by Youth Groups: 153 participants Pop Up Museum events: No of events attended.. 6 events No of participants: 600 participants lestimatedl Fundralslni The Museum's fundraising capability is now firmly established. To keep the cost of fundraising down, the CEO provides the staff lead and has the support of a part time Development Manager. She reports to the Fundraisin8 Committee that provldes guidance and support. The Museum is reglstered wlth the Fundralsin8 Regulator and the team abide by the Fundraising Code. The Museum's fundraising promise is linked to the website httP5'.1/www.armyfl%inLcom]_projecl-eaElelfundfaisin l. Fundraising actlvltles have concentrated on application5 to Brant making trust5, developing business relationships and major fundraising event5. The Museum did not receive any complaints in the period. Page 7
Army Flying Museum Limlted Company number: 2109510 Report of the trustees {incorporating the Directors, report) for the year ended 28 February 2023 Fundraising Events Fundralslng contlnues In earnest with an alm of generating £40k surplus every year. We have refreshed the Fundraising Committee and are focussed on building new business relationships, increasin8 the Corporate Partnerships scheme and putting on publlc event5 to help raise fund5 whilst also increasing awareness of the Museum. New events this year have included the Remembrance Concert with the Andover and Middle Wallop Military Wives Choir, Santa's Flying Visit la meet Santa event) and a Christmas Craft Market. The Museum'5 flagship fundraising event, Wallop Wheels & WlnBS, took place on Saturday 02 July 2022 wlth an increased capacity of 3,775 and the event sold out for the second year runnin8. We have built stronB relationships with Salisbury, Wilton and Andover Rotary, Hampshire SeaTch & Rescue, and numerous Combined Cadet Force groups now and are extremely grateful for thelr support and the support we recelve from the Army Air Corps and Army Aviation Centre in order to deliver this event. A lot of le550ns were leamt from the second event to hopefully inform and ensure the success of the comlnB years. The Mu$eum Lecture Programme The Museum ha5 alwoy5 had a popular lecture programme but Sn response to the Covld-19 pandemic we developed the Lockdown Lectures which were broadcast onllne with a live Q&A. These launched in April 2020 and quickly 8rew in popularlty, and a grant from the HeTltage Fund Emergency Fund in late 2020 allowed us to purchase our own Ilve-stream equipment. Now, we Ilve stream all our lectures as well as havlng a live audience in the Museum, and we offer them to vlew on catch up too. We have also donated pa55e5 to watch our onllne lecture 'box-sets' to local care homes for their residents. Date 1610312022 0710412022 1210512022 1710512022 0610612022 1510612022 1210712022 1011012022 2211112022 3010112023 2010212023 Lerture Codename Intrepld Falklands 40 Navy Win85 Collaboration The Rlfles Museum partnership Nothing is Imp055lble Dad's War with Chris Tarrant Sicilv Test Pllot Op Freshman Chinook Crew Chick D-Day, Arnhem and the Rhine Onllne 49 63 151 54 71 In Person N/A NIA NIA N/A 139 N/A 97 96 31 49 50 75 63 43 iio 55 NIA Volunteers Volunteering is fully underway with all four volunteer teams working hard on iheir respective project5. The teams are Engineering, Archive, Education and Tour Guides and we have over 40 active volunteers now. The role5 our volunteers perform are invaluable to the runnin8 of the Museum and they often get involved in the wider activities too Illke Wallop Wheels & Win851. Pa8e 8
Army Flying Museum Limited Company number: 2109510 th Report of the trustees (incorporating the Directors, report) for the year ended 28 February 2023 Achievements and perfomiance Flnanclal Revlew The Museum. Café and Shop were open throughoul the reporting period. YTD VISITOR NOS TICKET INCOME CAFÉ INCOME £161,430 SHOP INCOME 28 FE8 23 38,596 £238,536 £66,531 28 FEB 22 35,396 £195,357 £119,673 £57,584 28 FEB 21 14,3B8 £95,093 £46,538 £31,066 29 FEB 20 36,282 £257,320 £188,984 £67,692 28 FE8 19 23.568 £147,087 £142,183 £58,443 28 FE8 18 30.3S4 £189,758 £146,681 * NB. The Museum was c105ed due to Covid 19from 01 Mor-16 May 2022 ' NB. The Museum was closed due to Covid 19 oportfrom 13 Jul-04 Nov 20 ond04 Dec.23 Dec 20 ¥ NB. The Museum wos closed in March 2019for refurbishment N8. The Museum wos closedfrom Nov 18- Feb 19for relurbishment £75,732 Subsldlary Undertak1Th8 The Army Flylng Museum Tradlng Company Limited Is the i¢Th subsldlary of the Army FlySng Museum Limited. The 5ub5idiary operated the tradin8 activltles of the museum and covenants Its profits to the Museum on an annual basls. Prlnclpal fundln8 Streams The principal fundlng streams into the Museum are threefold, as detailed below. All fundlng has been used In the appropriate manner to SUPPOrt the management oblectlves for the period. Income generatlon from tradlng and admlsslon actlvlty Includlng glft ald This Income is dlrected toward5 the management of the Museum and the Improvements required to develop the business. This year has seen an improvement in shop profit5. The café continues to be a challenge and is un(ier80ing a full review in the comin8 year to Infom) Its future vlability- MOD support The MOD provides SUPPOrt in 2 ways: Grant in aid. This totalled £62,450 for the year. Internal BusSness Agreement. Thi5 covers support such as the provision of utilities and some maintenance and which the MOD value at £71,571 for the year. We also received two grants from the AAC Charlty- one annual grant of £18,000 to support the employment of an Archivist and ArchNe Assistant, and a one-off grant of £6,OCQ to support the renovation of the Armv FFying Memorial floorlng. Page 9
Army Hylng Museum Limited Company number: 2109510 th Report of the trustees (Incorporatlng the DIreCtor report) for the year ended 28 February 2023 Grants and donatlons Unle55 specified by the donor. grants and donatlons to the Museum are allocated to unrestricted fund5. Tkket Prlcln8 The standard ticket was increased on 01 October 2022 due to rising costs and a lower level of visitor spending. An adult ticket increased from £14.00 to £16.Ll), children are now priced at £9.50 Ifrom £8.00) and concessions have InCaSed from £IO.W to £12.00. A family tlcket for two adults and two chlldren Is priced at £42.00 and under 45 are free. Free Entry The Museum offers free entry to: AAC members (plus their accompanying Spouse/Childrenl Army Air Cadets (when booked through the Army Air Corps) Servin8 Brltlsh or Commonwealth Military personnel on production of a MOD90 or equlvalent ID Card AAC Veterans with an AAC Veterans, Association Membership Card Wheelchair pu5her5 and carer5 of disabled people Middle Wallop Membershlp cardholders Children under 4 Reserves Pollcv The sUltS for the period, and the company's flnanciol positlon at the end of the year, are shown In the attached accounts. The agreement5 Wlth the MOD continued to work well and are of enormous benefit to the Museum. However, MOD budget constralnts continue to adversely affect the maintenance support for Phase l of the museum building Iwhich is an MOD maintenance responsibility). This has resulted In Museum staff taking on Some maintenance tasks and additional expense falling to the Museum. The Museum maintains a level of free resee5 as mltlgatlon a8ain5t the operational ri5k5 listed in the risk register. Restricted reserves are used in accordance with their specified restrictions. Free li.e. non- committed) reserves are calculated on the basis of the excess of unrestricted funds over flxed a55ets. The minimum level of the unrestricted reserve is determined by the requirement to provlde some financial mitigatlon of risks listed In the risk register. The most significant of these in financial terms is the risk of income falling to a level that prejudices the Museum's vlabillty. Due to the increased cost of Ilvlng and risin8 overhead5, the Trustees have reviewed the pollcy regardin8 free re5erve5 and agreed to increase the requlrement to £2,0. At 28 February 2023 the level of the Museum's free reservc5 amountcd to £144,07412022.' £213,222). Investment Pollcv The Museum's investment poliry is to hold it5 IiqLJid a55ets in its bank accounts. Project Ea8le reserve5 have lar8ely been expended no significant sums are held in interest bearing accounts. Plans for future perlods Directors have approved the annual update to the 5-year strategic plan for the museum that aims to deliver the Museum's vision. Page 10
Army Hyln8 Museum Llmlted Company number: 2109510 Report of the trustees (incorporatlng the Dlrector< report) for the year ended 281h February 2023 Review Thi5 plan 15 reviewed annually. Key imperatives from this annual analysis are that we must: consolidate our operational and resource position followin8 Project EAGLE. address our outstanding infrastructure issues. continue to build up our fundralslng capability. continue to press and plan for the installation of an Apache. consider our options for further development durlng the next 5trate8ic period127-331. Assumptlon5 The 5trate8lc plan is based on the followin8 assumptions.. MOD Support. MOD support includlng the Brant In ald received via AMOT will continue at current levels until at least 2027 but may well reduce thereafter, Maintenance support will continue at current patchy levels. Alrfield. Army flyin8 operation5 wlll Increase 23-26 and continue for the foreseeable future. Economy. The UK economy will grow very slowly, base Interest rate5 will Increase slgnificantly, labour wlll be In short supply and there Is a hl8h rlsk of sta8flatlon, leadln8 to a recession. Key Strate8le$ The followln8 Strategies wlll be pursued by the Museum.. Maintain and develop an effective board of trustees/dlrectors. hlurture the c105e relationship wlth the Army Air Corps. Seek to Increase museum visitor footfall up to 40,IXIO annually by 2027. Invest in Corporate and Membership schemes, almln8 for 5% growth annually. Bulld on our outreach programme, seeking to double our coverage by 2027. Develop our fundraising activities to 8enerate £70K annually by 2027. Market the MLtseum primarily throu8h digital activities and social media and developin8 a plan to improve our PR profile re8ionallv. Invest more in training our staff. Operatlonal Oblectlves Our Key Operational Objectives are,. Develop Wallop Wheels & Wing5 to deliver a £40K annual surplus. Maintain a routlne events programme to generate £20K annually. Sustain the Lockdown Lecture Series to generate £20K annually. Operate the Shop to generate £IOK surplus annually. Operate the Café to generate £20K surplus annuallv. P•#e 11
Army Flying Museum Umlted Company number: 2109510 th Report of the trustees {incorporating tho Dirertors, report) for the year ended 28 February 2023 Development Objectives Our key development objective5 are to.. Assess the flnancial Implications of reductions In MOD 5UPPOrt. Resource and deliver a restroom refurbishment project 23-25. Build on the visitor feedback collected to date and ensure that evaluatlon is embedded in all actlvities. Seek to extend and diversify our audience. Consider how to better reflect Army unmanned aerial pSatform5. Increase collaboration with other regional museums. Rlsks A number of high-level risk5 have been identified that affect the Museum STRATEGIC RISK Income Generatlon The Museum ha5, In the past, relled on income from events supported by the Minlslry of Defence to 8enerate a surplus. These events are no longer avallable and so additional income needs to be generated through footfall, tradlng and fundraising. In addltlon, Mlnlstry of Defence funding and material support Is likely to decrease over time, puttin8 further PTe55ure on the Museum budget. Covld-19 The impact of any future peaks and subsequent lock(iowns will have a si8nificant impact on the reserves. Loss of Reputatlon Adverse comment and poor reputation affect bu51ness performance. Malntenance1Sablllty. Pressure on Ministry of Defence funding has reduced maintenance support puttlng addltlonal pressure on museum funding HR Rlsk Errors in HR management can lead to discontent, 5tre55,1055 of productivity and in extreme cases, tribunals and fines. RESPONSE Project Eagle ha5 substantially increased footfall and tradlng, but these have now been affected by the pandemic, cost of living crisis and the situation in Ukralne. However, fundraising 15 now embedded in the or8anisation and a component of core fundin8. All opportunltles for fundraising and income generation must be actioned when p055ible. LeBal compllance and a culture of customer seNice and value for money. Signlflcant Improvements in the material State of the Museum through Project Ea8le plus a 5VStem of planned maintenance. HR advlce has been outsourced to Peninsula business services. Health and Safetv Inadvertent noncompliance with Health and Safety legislation leadin8 to a fine. Fraud Stsff loading/lncapacity Health and Safety advice ha5 been out50urced. Implementation of Proper procedures. Careful monitoring and Keyman insurance P•8e 12
Arniy Flyln8 Museum Llmlted Company number: 2109510 Report of the trustees liKorporating the Directors, report) for the year ended 28th February 2023 Auditors The accounts have been audited by Compass Accountants Llmlted. A resolutlon to reappoint the auditor will be put to the members at the Annual General Meetin8. So far as the Trustees are aware, there is no relevant audlt Informatlon of which the company's auditors are unaware. Trustees have taken all the steps necessary to make themselves aware of any relevant audit Information and to establlsh that the company's auditor5 are aware of that information. Small company provlslons This report has been prepared in accordance wlth the special provisions for small companle5 under Part 15 ofthe CompanlesA¢t 2006, Slr Gary Coward On behalf of the Board Date: 31 111>5 Pwly
Army Flylng Museum Limited Company number: 2109510 th Statement of trustees, responslbllltles for the year ended 28 February 2023 The Trustees Iwho are also directors of the Army Flying Museum Limited for the purposes of company lawl are responslble for preparing the Trustees, Annual Report (including the Strateglc Report) and the financial statement5 in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accountln8 Practice). Company law requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, includlng the income and expendlture, of the charitable company for that period. In preparing these financial statements, the Tru5tee5 are required to: select suitable accountlng policie5 and then apply them con515tently,' observe the method5 and principles in the Charltles SORP 2019 IFRS 1021; make judgements and estlmates that are reasonable and prudent: state whether 3ppllcable UK Accountlng Standards have been followed, subJect to any material departures disclosed and explained in the financial statements; prepare the flnancial statement5 on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operatlon. The Trustees are responslble for keeping adequate accountln8 records that dlstlose with rea50nable accurary at any tlme the financlal posltion of the charltable company and enable them to ensure that the financlal statements comply with the Companies Act 2006. They are also responsible for safeguarding the a55ets of the charitable company and hence for takln8 reasonable 5tep5 for the prevention and detection of fraud and other irregularlties. Slr Gary Coward On behalf of the 8oard 31 Pa8e 14
Army Flying Museum Limitid Company number: 2109510 Independent Audltorfs Report to the Mernbers and Trustees of the Army Flylng Museum Llmlted Oplnlon We have audited the financlal statements of the Army Flying Museum Limited Ithe'parent charltable companVI and Its subsldlary Ithe'group'l for the year ended 28, February 2023 which comprise the Consolidated Statemènt of Financial AttivitiÈs, the Con501idated Balance Sheet, theconsolldated Cash Flow Statement and notes to the financial statements, includin8 a Summary of 518nlflcant accountlng pollcles. The financial reportin8 framework that has been applied Sn thelr preparation is appllcable law and United KlnÈdom Accountlng Standards. including Financial Reporting Standard 102 The Flnonclol Repcjrtlng 5t(Jndurd opplicoble in the UK ond Republic of Irelond Iunited Kingdom Generally Accepted Ac¢ouniin8 Practice). In our opSnlon the flnanclal statements.. 8ive a true and fair view of the state of the 8roup's and parent charitable company's affairs as at 28, February 2023, and of the group's Incomin8 resources and appllcatlon of resources, Includln8 Its income and expenditure, for the vear then endeé,. have been properly prepared In accordance with Unlied Kbngdom Generally Accepted Accounting Practice; and have been prepared In accordance wlth the requirement5 of the Companies Act 2006 and the Charltles Act 2011. Basls for oplnlon We Conducted our audit in accordance wlth International Standards on Auditlng ILIKI IISAS IUKII and applicable law. Our responslbilitles under those standard5 are further described In theAudltor's responslbilitles for the audlt of the financlal statements sectlon of our report. We are independent of the group and parent charltable company In accordance with the ethlcal requirements that are relevant to our audit ol the financSal statements In the UK, includlng the FRCS Ethical Standard, and we have fulfilled our other elhical responsibilitie5 in accordan with these requlrements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a bas15 for our oplnion. Conduslons relatln8 to ioln8 concern We have nothSng to report In respect of the followln8 matters in relatlon to which the ISAS IUKI requlre us to report lo vou where.. the tTUStees' use of the 8olng concern basis of accountin8 in the preparatlon of the financlal statements Is not approprlate,. or the trustees have not dlsclosed In the flnanclal statements any identifled materlal uncertainlles that may cast 518nificant doubt about the group's or parent charltable company'5 ability to continue to adopt the Boing concern basis of accountin8 for a period of at lea5l Iwelve months from the date when the flnanclal statements are authorised for Issue. Oiher Informatlon The trustees are responslble for the other informatlon. The other Informatlon comprlses the Informatlon Included in the Iruslees. annual report, other than the financial statements and our auditorfs report thereon. Our opinion on the financial statements does not cover the other informBlion Jnd, except to the extent otherwise explicitly stated In our report. we do not express any form of assurance conclusion thereon. In eonnectlon wlth our audlt of the flnancial stalemenls, our responsibility is to read the other information and. in doing so. consider whether the other information is materially inconsistent with the finanrial statements or our knowledge obtained in the audit or otherwise appears to be malerlally misstated. If we identify such material Inconsistencies or apparent materlal misstatements, we are required to determine whether there is a material misstatement In the financlal statements or a material misstatement of the other informatlon. If, based on the work wè have pèrformed, we Conclvde that there is a material misstatement of this othèr inforrnation, we are required to report that fact. We have nothSng to report In this fegard. Pale 15
Army Flylng Museum Llmlted Company number: 2109510 Oplnlons on other matters prescrlbed by the Companles Art 2006 In our opinion, based on the work undertakèn in the course ol the audit; the Informatlon Blven In the trustees, report lincorporatlng the dlrectors, feportl for the financial year for which the financial statements are prepared is con515tent wlth the financlal statement5; and the diTector5' report has been prepared In accordance with applicable legal requirements. Matters on whl£h w• are r•qulred to report by exceptlon In the light of our knowledge and understandlng of the group and parent tharitable company and its envlronment obtained in the course of the audlt, we have not identified material misstatements in the directors, report. We have noihlng to report in respect of the followln8 matters In relation to whlch the Companle5 Act 2006 and the Charltle5 Act 2011 requlres U5 to report to you if, In our opinion: adequate and sufficient accounting records have not been kept by the parent charltable company, or returns adequate for our audlt have not been recelved from branches not vlslted by us,. or the parent charltable company's Ilnanclal statements ale not in a8reement wlth the accountlng records and returns.. or certain disclosure5 01 directors. remuneratlon speclfied by law are not made,. or we have not recelved all ihe Informatlon and e¥planatSons we requlre for our audlt,. or the trustees were not entiiled to prepare the financSal statements In accordance wllh the small companles, re8irne and take advanta8e of the small companles, exemptlons In prepaTill8 the directors, report and from the requirement to prepare a strategic rèpoft. Responslbllliles of trustees A5 explalned more fully in the tru5tee5' responsiblllties statement set out on page S. the trustÈes (who are also the dlrectors of the charitable company for the purposes of company lawl are responsible for the preparatlon of the financlal 5tatemenls and for belng sallsfled that they glve a true and fair view, and for such Internal control as the trustees determlne Is necessary lo enable the preparatlon of financSal statements that are free from material mlsstatement, whether due to fraud or error. In preparlng the financlal statements, the tru5tee5 are responslble for a55essln8 the group's and parent charltable companvs ablllty lo continue as a golng concern. disclosln& as appllcable, matters related to goin8 concern and using the 80ing concern bas55 of accounting unless the trustees either intend to liquidate the group or the parent charltable company or to cease operations, oi have no realistic alternatlve but to do so. Audltorfs responslbllltles lor the •udlt of the fln•nclal st•ttmertt$ Our objectives are to obtain reasonable a55urance about wheiher the financial statement5 as a whole are free from materlal m155t3tement, wheiher due to fraud or error, and to Issue an audltorfs report that Includes our oplnlon. Reasonable assurance 15 a high level of assurance. but Is not a guarantee that an audit conducted in accordance with ISA5 IUKI will always detect a material misstatement when it e¥i5t5. Mi55tatements can arise from fraud or error and ale consldered materlal if, individually or in the a88re8ate, they could reasonably be empecied to Influence the economic decisions of users taken on the basis of these flnanclal statements. Irregularitles. includTng fraud, are instances of non-compliance wlth laws and regulatlons. We desi8n procedures in line with our responsibilities, outlined above, to detect material misStaternent5 in respect of irregularities, including fraud. The speclflc procedures for this enga8ement and the extent to whlch these are capable of detectln8 Irregularlties. includSng fraud Is Iletailed below- We gained an uftderstandlng of the legal and regulatory framework applicable to the charity and the sector In which it operates through discussions with management. sector research, and the applicatlon of relevant audit knowledge and experience We made enquiries of management around actual and potential litigation and clairns Pale 16
Army Flying Museum Llmlted Company number: 2109510 We made enquirie5 of management and relevant staff, and designed our audit procedures, including reviewing financial statement disclosures and testing of supporting documentation, to assess compliance with applicable laws and regulations. We focussed on laws and re8ulations which could give rise to material misstatement in the financlal statements includlnB, but not Ilmlted to, the Charlties Act 2011, the Charities SORP, and the Flnancial Reportlng siandard 102. We Identified the iisk of material misstatement of the financial statements due to fraud and deslgned audlt procedures to respond to the risk. We performed audit procedures de518ned to addre55 the risk of fraud ari5in8 from management override of controls, including, but not limited to, testin8 of journal entries and other adlustment5. revSewlng accountlng estlmates for evldence of blas, and evaluating the bu5ine5s rationale of slgnlflcant iransartions outside the nomial course of buslness Because of the inherent limitations of an audlt, there Is a risk that we will not detect all irre8ularilies, including those leadlng to a malerlal mlsstatement In the financlal statements or non-compliance wlth regulatlon. This risk Increases the more that compliance wlth a law or Te8ulation is removed from the event5 and transactlons reflected In the flnancial statements, as we will be le55 likely to become aware of instances of non-cornpliance. The risk is also greater regarding irregularities occurrln6 due to fraud rather than error, as fraud Involves Intentlonal concealment, forgery, collusion, omi551on or mlsrepre5entatlon. A further description of our responsibilities for the audlt of the financial statement5 is located on the Financial Reporting Councll's webslte al.. www.frc.cr8.uVaudStorsresponsibilities. Thls description forms part of our auditorfs report. Use ot our r•port This report Is made solely to the charitable company's members, as a body, In a¢cord8n¢e wlth Chapter 3 of Part 16 of the Companle5 Act 216 and to the charltable company's trustees, a5 a body, In accordance wlth Part 4 of the Charities (Accounts and Reports) Regulatlons 2008. Our audlt work has been undertaken so that we mlght state to the charltable compan$ members and its trustees those matters we are requlred to stale to them In an auditor's report and for no other purpose. To the fL4llest extent permitted by law, we do not accept or as5urne re5pon5ibility to anyone other than the charltable company and the charltable company's members 85 a body and the charStable company'5 trustee5 as body for our a it work, for thls report, or for the oplnlons we have formed. K•rry Lawranc• FCA Senior Statutory Audltor For and on behalf of Compass Accountanis, Statutory Audltor Venture House, The Tanneries East Street, TStchfield Hampshire P014 4AR t>ate: S r 2cf23 Compass Accountants 55 ell8lble to act as an audltor In terms of sectlon 1212 of the Companies Act 2CK)6 Page 17
Am?v Flylng Museum Llmlted Company number: 2109510 Consolldated Statement of financial activities lincorporating the income and expenditure account) For the year ended 28 February 2023 Unrestrlcted Restrlcted fvnds funds 2023 Total ilnrestrlrted Restrlcted funds funds 2022 Total Notes Income from: Donations and legacles Grant in aid Services donated by the Ministry of Oefence Donations and grants Charitable actlvltles Admlsslons Other tradin8 activities Trading companv Investments Other 80,450 80,450 79,324 79,324 71,571 7,632 71,571 15,873 71,571 176,778 71,571 263.876 8,241 87,098 391,908 391,908 349,401 349,401 250,739 593 250,739 1,168 756 197,381 360 197,381 402 57S 42 756 24,ClJO 24,000 Total Income 652,237 160,228 812.465 658,240 327,715 985,955 E¥pendliure on., Fundra151n8 and publlclty Tradin8 company Charitable activitie5 63,342 249,614 433,923 376,538 63,342 249,614 810,461 57,013 186,906 404,780 57,013 186,906 960,932 SS6,152 Total expendltur• 746,879 376.S38 1,123.417 648,699 SS6,152 1,204,851 Net In¢omellexpendlturel 194,6421 1216,3101 1310,9521 9,541 1228,4371 1218,8961 Transfers bet•n fvNIs Nel movement In lunds 194,6421 1216,3101 1310,9521 9,541 1228,4371 1218,8961 ReconclllalSon of funds: Total funds brought forward 1,355,373 1,208,558 2.563,931 1,345,832 1,436,995 2,782,827 Total funds carrSed forward 1,260,731 992,248 2,252,979 1,355,373 1.208,558 2,563,931 All recognised gains and losses are included in the statement of financial activities. All tTan5actions are derived from continuing activltie5. The depreciation costs of the capital expenditure on Project Eagle wlll reduce the balance of restrlcted reserves over the Ilfe of the lease and will result in deficiis after depreciation being reco8nised in future years. Th• notes on pages 21 to 33 form an Intègral part of theselEnancSal statements. Page IB
Army Flying Museum Limited Company number: 2109510
Consolidated Balance Sheet as at 28th February 2023
| Notes Fixed assets Tangible assets 13 Heritage assets 14 Investments 15 Current assets Stocks Debtors 16 Cash at bank and in hand Creditors: amounts falling due within one year 17 Net current assets Provisions for liabilities Net assets Funds Unrestricted funds Restricted funds 18 Revaluation reserve Non Charitable Trading funds Total funds |
Group 2023 £ 1,897,855 10,000 1,907,855 13,054 10,979 362,018 386,051 (40,927) 345,124 2,252,979 878,160 992,248 340,782 41,789 2,252,979 |
Group 2022 £ 2,151,578 10,000 2,161,578 13,105 34,867 397,981 445,953 (43,600) 402,353 2,563,931 969,206 1,208,558 340,782 45,385 2,563,931 |
Charity 2023 £ 1,884,362 10,000 100 1,894,462 19,346 330,662 350,008 (33,280) 316,728 2,211,190 878,160 992,248 340,782 2,211,190 |
Charity 2022 £ 2,123,138 10,000 100 2,133,238 47,524 358,359 405,883 (20,575) 385,308 2,518,546 969,206 1,208,558 340,782 2,518,546 |
|---|---|---|---|---|
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the Board and signed on its behalf by
Sir Gary Coward Chairman Date: J..-/ / :i. 3 /t
C. Hopkins Treasurer
The notes on pages 21 to 33 form an integral part of these financial statements.
Page 19
Army Flying Museum Limited Company number: 2109510 Cash flow statement th for the year ended 28 February 2023 Group 2023 Group 2021 Cash flows from operatlng a¢tivities: Net cash provlded by (used Inl operatlng artlvltie$ 136,0321 1153.6661 Cash flows from investing actlvltles: Interest income Purchase of fixed assets 1,168 11,0991 402 163.7531 Net cash provlded by (used In) Investlng actlvltles 69 163,3511 Increasel(decrease) In cash and ¢•sh equivalents In the year 135,9631 1217,0171 Cash and cash equlvalents at l March 2022 397,981 614,998 Cash and cash equlvalents at 28 February 2023 362,018 397,981 Net incomelexpenditure for the reportln8 perlod Depreciation and impalrment Income from Snvestments Decrease/llntreasel in stocks Decrea5elllncreasel In debtors Increaselloecreasel In credltors 1310,9521 254,822 11,1681 51 23.888 12,6731 1218,8961 259,573 14021 11,0271 119,2241 1173,6901 Net cash provlded by (used In) operatln8 a¢tlvltles 136,0321 1153.6661 Page 20
Am)v Flylng Museum Llmlted Company number: 2109510 Notes to financial statements th for the year ended 28 February 2023 AccountiTh8 polici05 Charlty Inforniation The Army Flyin& Museum Limited Is a prlvate company lirniled by 8uarantee and incorporated in En8land and Wales. The registered office is the Army Flying Mu5eurn, Army Aviation Centre, Middle Wallop, Stockbridge, Hampshbre, S02D 8DY. The Army Flying Museum Limited meets thè deflnltlon of o publlc benefit entity under section 34 of FRS 102. Assets and liabillties are initbally reco8nised at h15torlcal c05t or transactSon value, unless otherw15e stated in the relevant accounting policy. The prlncipal objectives of the ¢harlty are detalled in the Trustees report. 1.2. Basls of preparatlon of flnanclal statements The financlal statements have been prepared in accordance with Accounting and Reportin8 by Charities.. Statement of Recommended Practlce applScable to charlties preparlng thelr accounts In accordance wlth the Flnanclal ReportlnB Standard appllcable In the UK and Republic of Ireland (FR5 1021 (issued In October 20191 Icharltles SORP IFRS 10211, the Flnanclal Reportln8 Standard appllcable in the UK and Republic of Ireland IFRS 1021 and the Companle5 Act 2006. The flnanclal statements are presented In sterlln8 whlch is the functlonal currency of the company. Monetary amount5 In these flnanclal staternent5 are rounded to the nearest £. The consolldated flnancial statements Incorporate the results of the Army Flyin8 Museum LSmlted and of It5 subsldlary undertaklng as at 281h February 2023 usinB the aequisitlon method of accounting. A separate statement of financial activlties and income and expènditure account arè not presented for the charity Itself followlng the exemptions afforded by Sectlon 408 of the Companles Act 2006. 1.3. Incomln8 resources All Sncomln8 resouices are Included In the SOFA when the company is legally entitled to the Income and the amount can be quantified wllh reasonable accuracy, and It Is probable that the income wlll be recelved. The followln8 pollce5 are applled to partlcular categorles of Income: Income from tradin8 aCtivitle5 Tepre5ents monles receSved lexcluslve of Value Added Tax) from shop and restaurant sales durln8 the year. All donations are accounted for on a receivable basis. Separate reserves are maSntalned for restrlcted funds accordonce with the Charlties Acl 2011. Grant5 receivable are accounted for when received and are included under the headlng of donatlons. 5ervlces donaied by the Ministry of Defence is the value of the seNices of staff and fatillties pald dlrectly by the Ministry of Defence. These have been included on a cost basls In the accounts. Grant in aid is a donation from the Ministry of Defence towards ernployment Costs. Investment income is reco8n15ed on a receivable basis. 1.4. Governance costs Governance costs incl¢Jde costs of the preparatlon and examination of the statutoryaccounts, the costof Trustee meetings and the cost of any le8al advice to Truslee5 On 80¥ernan or constitutional matter5. Page 21
Army Mying Museum Limited Company number: 2109510 Notes to flnanclal statements for the year ended 28 February 2023 Resources expended All expenditure is accounted for on an accruals basls and has been classified under headings that a8gre8ate all costs to the Category. Where cost5 cannot be directly attributed to partlcular headings they have been allocated to actlvitles on a bas15 cons15tent wlth use of the resources. 1.6. Basls of allocatlon Costs of generating funds comprise costs incurred in Èncoura8in8 people and organisatlons to conlrlbute financially to the charity's work and to promote the Army Flying Museum as a visitor attraction. Support costs Include central functlons and have been allocated to cost cate8orles on 8 bas15 conslstent wlth the vse of resource5. 1.7. Irrecoverable VAT Irrecoverable VAT has been Included a5 a c05t of charltsble actlvltSes. 1.8. FSxe¢ assets Individual fixed assets costing £i,¢XJO or more are inltlally recorded at cost. 1.9. Herltage assets The Army Flying Museum holds in trust artefacts comprlslng its collection. The collections have not been Included in the Ilnancial statements due to their historic and inalienable nature and due to the 5peclfic and Indlvldual nature of the artefacts held, it Is not belleved to be possible to obtaln a rellable value of the collecllon wlthout Incurring a c05t dlsproportlonate to the benefit of the Informatlon reported to the readers ol the accounts. Assets acqulred prlor to I. Aprll 2000 have not been capltallsed and Included In the accounts but wlth effect from I" Aprll 2CN)O, addltlons to the collectlon wlth a cosl excess of £5.000, have been capltallsed. These assets are not revalued or depreciated. Herlta8e assets donated to the Museum wlth a value In excess of £5,000 are Included In the accounts on the bas15 of Internal valuatlons. The Colle¢tlon The maln museurn collectlon comprSse5 aSfcraft, vehicles, equlpment, unlforms, medals, weapons, artwork and ephemera. It also Includes an archSve of documents, books, photO8r3phs. photographic ne8atlves, album5, slide5 and Illrn. The collectlon, which number5 many hundreds of thousands of items, contalns material whlch has ? unique provenance relatSn8 to British Army Flyin8. Information reBardin8 Cost of value of thi5 collection 15 not readSly avallable and the charlty conslders that the cost of obtalnlng such valuatlon for the collection of a5set5 held Ss siBniTicant, and Is not commensurate wbth the benefit obtained by Includlng the addltlonal capltallsed value In the flnan¢lal 5t0tements. Pollcy for the acqulsltlon. pre5ervatton. management and d15P05al of herttale assets Acqulsltlon and dlsposal of items In ihe collectlon Is governed by its Collectlon5 Developrnent PolScy120161 whlch Is based on an approved template provided by Arts Councll England. It takes Into account the Museum Association Code of Ethics. Documenting. The Museum's approach to dotumentinB the collection is stated in Its Collections Documeniation Policy120161 and 15 formalised in a forward plan of work. It operate5 a system which meets Spectrum basic standards Including entry, exit and transfer of title forms.. accession records and inventories. Conservation. The Museum's approach to conserving the collection is Stated in its Collections Care and Conservation Policy120161 and Ss formalised In a plan of work forward. Work in thi5 area is undertaken by staff, volunteers under the supervision of staff or specialist contractors. Page 22
Army Flying Museum Llmitsd Company number: 2109510 Notes to financlal statements for the year ended 28th February 2023 Access. The Museurn's approach to providing acce55 to collections Is stated In Its Access Poll¢y120161. The collections. and the Information held therein, is made available through permanent and temporary exhibitions, website features, loan5 to other organisations and an enqulries service. Mernber5 of the public can also access materlal by appointment. Access Is only limlted where legislation requires it. Memorlal Wall The Museum commlssloned and built a memorial wall, completed In 2017, to commemorate those that have lost thelr Ilve5 in the service of Brit15h Army Flying however thls is not considered to be a heritage asset as deflned by FRS 102. 1.10. Oepre¢latlon Depreciation is provided on tan8Sble flxed assets so as to wrlte off the cost or valuatlon, less any estlmated rè51dual value, over the expected useful economlc Ilfe as follows.. Museum dlsplays & equlpment- 13% & 25% Straight Ilne basls Leasehold property- Over the Ilfe of the lease Leasehold improvements- 10 or 25 years Shop & kitchen equlpment- 20% Strai8ht Ilne b¥515 1.11. Investments Flxed asset Investments are included at market value at the balance sheet date. Reallsed galn5 and 105ses on Investments are calculated 35 the dlfference between sales proceeds and their market value at the start of the year, or thelr subsequent C05t, and are charged or credlted to the statement of flnanclal actlvltles In the period of dlsposal. Unreallsed galns and losses represent the movement In market values durlng the year and are credlted or chargeil to the statement of ffinanelal actlvitles based on the market value at the year end. 1.12. Flnanclal Instruments The Museum h35 elected to apply the provislons of Sectlon Il'Baslc Flnanclal Instruments. and Sectlon 12'0ther Flnanclal Instruments Issues, of FRS102 to all of Its financial Snstruments. Flnancial instruments are recognlsed when the company becomes party to the contractual provlslons of the Instrument. Flnanclal asset5 and liabllltles are offset, wlth the net amount5 presented Sn the flnanclal statements, when there 15 a leBally enforceable ri8ht to Set off the recognised amounts and there Is an Intention to settle on a net bas15 or to reallse the asset and settle the Ilablllly slmultaneouslv. The Museum'5 financial a55et5 and liabilities consSst of cash and cash equivalent5, Short terrn investments, trade debtors, trade creditor5 and accrued pxppn49.%. Thp fAir valLJP fif th•%p itpms apprnxlmatPS thelr carrylne valLie due to theirshort term value. Unless otherwise noted. the Museum Is notexposed to S*8nificant interest, foreign exchon8e or credSt risks arising from these instrument5. Term deposlts of less than one year are ¢las51fled as Investments withln current assets. 1.13. Stocks Stock 15 valued at the lower of cost and net reallsable value. after due regard for obsolete and slow moving stocks. Net reali5able value is based on selling price les5 anticipated cost5 to completion and sellln8 COSt5. l.lQ Leased Jssets Rentals applicable to operatin8 lease5 are charged to the Statement of Flnancial Activities as Incurred. Pa8e 23
Army Flying Museum Limited Company number: 2109510 Notes to flnanclal statements for the year ended 28th February 2023 1.15. Fund accountlng policy Unrestricted income funds are generally funds that arè available for use at the Trustees discretion in futherance of the objectives of the charity. Restrlcred funds are th05e donated for use in a particular area or for speclflc purposes, the use of which 15 restrlcted to that area or purpose. Further detaSls of each fund are dlsclosed In note Ig. 1.16. Restrlcted lunds Restricted funds are to be used for specilled purpose5 as lald down by the donor. Expendllurewhlch meets these crlterla is Identlfied to the fund, together with a fair allocation of overhead5 and support costs. Unrestricted funds are donatlons and other Incornin8 resources recelved or generated for the charltable purposes. 1.17. Goln8 toncern The flnancial statements have been prepared on a 8olng concern basls as the trustees belleve that no materlal uncertalntles exisi. The trustees have consldered the level of funds held and the expected level of income and expenditure for 12 months from authorlsing these financial statements. The budgeted income and expendlture is sufflclent wlth the level of reserves for the charity to be able to contlnue a5 a 80in8 concern. 1.18. Terminatlon benefits The Museum reco8nises a Ilablllty for termlnatlon beneflts at the point where the 8roup15 commltted to maklng the payments In return for employee redundancv. Pen$lon cost$ The company operate5 a deflned contrlbutlon penslon scheme. The penslon cost for the period represents contributions payable by the charity to the scheme and amounted to £6,88012022'. £7,393). Contrlbutlon5 totallln8 £57612022.. £6671 were payable to the scheme at the end of the perlod and are Induded In ¢redltor5. Pa8e 24
Army FIWn£ Museum Limited Company number: 2109510 Notes to financial statements for the year ended 28 February 2023 Income and expen5e5 from tradlrq actlvltles of subsidiaries The charity has a wholly owned tradin8 subsidiary whlch is Incorporated In the Unlted Kingdom, Army Flylng Museum Trading Company Limited. Profit and Loss A¢¢ount 2023 2011 Turnover Cost of sales 235,781 1225,2961 10,485 14.958 182.530 1158,6751 Gross Profit 23,855 14,853 16,991 128,2331 Sundry income Giant from parent chaflty Overheads 124,3171 Net proflt/l10551 before tax Amount 8ifted to The Army Flylng Museum 1,126 14,7211 27,466 Profitll10551 for year before laxailon Taxation 13,5951 27.466 Retalned profltlllossl for the perlod 13,5951 27,466 Retalned proflt brought forward 45,384 17,918 Retalned proflt cariled forward Called up Ordinary Share Capltal 41,789 100 45,384 100 Capital and reserves 41,889 45,484 Grants and Donatlons Durlng the year the followln8 grants and dortatlons were recelved.. Unr•slrlcted Re5trkted funds fund$ 2023 Tot•1 2022 Tolal Grant in Ald Servlces provlded by Ministry of Defence 80,450 71,571 80.450 71,571 79,324 71,571 152,021 152,021 150,895 Other grants and donations: General donatlDns Coronaviru5 lob Retentlon Scheme National Lottery Herltage Fund Test Valley Borough Council .241 7.632 15,873 29,393 29.071 176,698 28,714 8,241 7,632 15.873 263,876 In 2022 £87,098 were restrlcted funds with £327,673 being unre5trlcted funds. Page 25
Amry Flying Museum Limited Company nurnber: 2109510 Notes to financial statements for the year ended 28th February 2023 Activities for generatlng funds Unr•strlcted lunds R•strS(ted funds 2023 2022 Museum Admisslons Glft ald tax claimed Hire of museum facilities Special events 238,664 47.8S8 26.041 79,345 238,664 47,858 26.041 79,345 200,088 44.500 8,913 95,900 391,908 391,908 349,401 All the ineorne for 2022 were unrestricted funds Investment Income Unrestrlcted funds Restrfcted funds 2023 2022 Dlvldend5 and Interest Interest on Corporatlon Tax Repayment 593 575 1,168 57 345 593 575 1,168 402 In 2022 £42 were restrlcted funds wlth £360 beln8 unrestrlcted funds Other Incomlng resources Unrestrlcl•d Restrlcted funds funds 2013 2022 Museum & Gallerles Exhlbltlon Tax Rellef IMGETRI 756 756 24,000 756 756 24,000 All the Income for 2022 were unrestrl¢ted funds Pa8e 26
Amiy Flying Museum Limited Company number.. 2109510 Notes to flnancial statements forthe year ended 28th February 2023 Cost of generating funds UnrestrScted funds Restricted funds 2023 2022 Shop and restaurant expenses Event Expenditure 249,614 63.342 249,614 63.342 186.906 57.013 312.956 312.9S6 243.919 All the expenditure foi 2022 were unrestrlcted funds Costs of charltable actlvltles Unrestrlcted Restrkted funds funds 2023 2022 Staff costs Cost5 pald by Mlnlstry of Defence staff tralnin Outreach cost5 Development project costs Repalrs and malntenance CompLtter expenses Hire of plant and machlnery Travel and sub51stence Unattributable VAT Profes51onal fees Depreclation Offlce costs Advert15in8 & promotlon costs Bad debt expense Governance and SUPPDrt Costs 278,085 84,517 71,571 550 362,602 71,571 1,396 1,571 346,924 7J,571 13 846 1,571 191,909 18,275 9,689 8,535 947 7,606 10,893 243,637 13,333 10,637 306 26,657 18,594 14,435 8,634 1,447 8,663 12,465 21.998 15,460 16,379 96 35,250 2,682 21,276 14,43S 8,634 1,887 8,663 12,465 238,776 15,460 16,379 96 35,250 440 216,778 433,923 376,538 810.461 960,932 In 2022 £556,152 were restricted funds with £404,780 being unrestricted funds 10. Governance and support costs Governance costs 2023 2022 Staff costs Auditors remuneration Cost5 of Trustee5 meetlngs Bank charges and Interest 24,953 3,550 159 6,588 24,953 3,550 159 6,588 20,901 3,5 75 2,181 35.250 35,250 26,657 Page 27
Amiy Flylng Museum Limited Company number: 2109510 Notes to financial statements for the year ended 28th February 2023 11. Audltois, remuneratlon 2023 2022 Audltors, remuneration audit of the financial Statements 3,550 3,5LKJ Audltors, remuneratlon other fee5.. Preparation of statutory accounts and payroll Taxatlon servlces - Consultancy and advlce reBardln8 VAT and other charlty matters, Includlng MGETR S,093 265 1,545 5.345 265 1,831 6,903 7,441 12. Employees 1023 2012 Employee ¢osts Wa8e5 and salaries Soclal securlty costs Pension costs Redundancy costs 449,308 24,807 6,880 5,033 357,357 25,525 7,393 486.028 390,275 Includln8 the Chlef Executlve Officer, the avera8e number of employees, analysed by functlon. was: 2023 2022 Management staff Museum Staff li 19 li 23 30 34 Durln8 the year two employees recelved terminatlon beneflts of £5,03312022.' £NIII. No tmstees recelvetl remuneration durlng the period, no trustees were relmbur5ed for expenses1281h Februaiv 2022.. Nill. No employees received remuneration of more than £60,(h)O during the year12022.' NIII. Key man•8ement personnel Employee benefits recelved by key management personnel total £44,088 12022.. £41,262) whlch Induded employers, natlonal rnsurance coniribuiions. Page 28
Army Hylng Museum limited Company number: 2109510 Notes to financlal statements for the year ended 28 February 2023 13. Tangible fed assets Group Leasehold Property Shop & Kltchen Museum Dlsplays & Improvem•nl Equlpment & Equlpment Herltage Assets Total At l March 2022 Additions Disposals 1,482.824 135,368 1,099 7,317 1,835,114 10,000 3,463,306 1,099 8,180 863 At 28 Febiuary 2023 1,482,824 129.150 1,834.251 10.000 3,456,225 Depreclatlon At l March 2022 Charge for the year Ellrnlnated on disposal 401,350 19,554 106,928 16,046 7,317 793,450 219,222 863 1,301,728 254,822 8,180 Al 28 February 2023 420.904 115,657 1,011,809 1,548,370 Net book values At 28 February 2023 1,061.920 13,493 822,442 10,000 1,907,855 At 28 February 2022 1,081.474 28,440 1.041,664 10,000 2,161,578 Charlty Leasehold Property Museum Dlsplays & Impro¥em•nt & Equlpment H•rStag• A55Qts Total Cost At l March 2022 Addition5 DIsp05als 1,482,824 1,83S,114 10,000 3,267,938 863 863 At 28 February 2023 1,482,824 1,834,251 10,000 3,327,075 Depreclatlon At l March 2022 CharÉe for the year Ellmlnated on dlsp05al 401,350 19,S54 793,450 219,222 863 1,194,800 238,776 863 At 2B February 2023 420,904 1.011,809 1,432,713 Net book values At 28 February 2023 1,061.920 822,442 10,000 1,894,362 At 28 February 2022 1,081.474 1,041,664 10,000 2,133,138 Revaluatlon of flxed assets The leasehold property was restated at open market value at 31" March 1993 and subsequently re(iuced bv depreciation on that value. Pa8e 29
Army Flylng Museum Llmited Company number: 2109510 Notes to financial statements for the year ended 28 February 2023 14. Herlta8e assets Total Cost At l March 2022 and 28 February 2023 io,coo Flve year Summary 2023 2022 2021 2020 2019 Addltlons Purchases Donatlons 5.OCQ 5,000 10,000 15. Flxed asset Investments Char5ty Unllsted Charlty Total Cost At l March 2022 and 28 February 2023 loo Unllsted Investments represents 100% of the Issued share capllal of Army FlySn8 Museum Tradin8 Company LSmited. 15.1. Investments held The company holds 20% or fflore of the share capltal of the followlng companles: Njture of buslne Shares h•ld % of shares ¢liss h•ld Comp•nv Army Flyln8 Museum Tradln8 Company Limlted Commerclal actlvltles of the paret)t companv Ordlnary i(xJ% 16. Debtors Group Z023 Group 2022 Charlty 2023 Charlty 2022 Amotsnts due wlthln I year. Trade debtors Other taxes and soclal security Other debtors Accrued income Prepayments Amount owed by group undertaklngs 2,413 2,236 481 4,579 24,000 3.571 2,413 2,236 481 4,579 24,000 3,571 12,657 5,245 5,002 4,721 3,321 3,889 3.321 10,979 34,867 19,346 47,524 P4e 30
Army Flying Museum Limlted Company number: 2109510 Notes to flnanclal statements for the year ended 28th February 2023 17. Credltors: amounts falling due within one year Group 2023 Group 2022 Charlty 2023 Charlty 2022 Trade credltors Other taxes and social securlty Other creditors Accrua15 and deferred intome 1,903 13,321 4.766 20,937 4,939 8.335 5,458 24.868 1,071 13.321 1,651 17,237 2,770 8,335 3,050 6,420 40,927 43,600 33,280 20,57S 18. Restrlcted funds l March 2022 InmInI Outplni Transfers 28 Febru•ry 2023 Grant In ald Ministry of Defence service5 provided Herltage & Archlve appeal fund Project EaBle development fund Memorlal Garden & Wall fund Cannon dlsplay fund Other restiicted fund5 9,L)00 80,450 71,571 184,5171 171,5711 11,2831 1217,9951 4,933 1,283 1,188,876 4,432 4,472 495 575 6,000 971,456 10,432 4,472 955 1,632 11,1721 1,208.558 160.228 1376.5381 992,248 l March 20ZI In¢omln8 Out¥olni Tr4nsl•rs Z8 February 2022 Grant Sn ald Mlnistry of Defence 5ervlces provlded Heritage & Archive appeal fund Projett Ea8le development fund Memorial Garden & Wall fund Cannon dlsplay fund Other restricted funds 5,570 79,324 71,571 175,8941 171,5711 1,283 1,420,743 4,432 4,472 495 1,283 1,188,876 4,432 4,472 495 176,820 1408,6871 4?7,715 1.45fi,1 £?1 ),?nA,44A The Grant In Ald fund Is a grant from the Mlnlstry of Defen heriia8e branch for employees, salafies. The Ministry of Defence services provided fund represents expenses paid by the Mlnistry of Defence as part of thè ongoing IBA agreement in place between the Museum and the Ministry of Defence. The Heritage and Archive appeal fund has been set up to fund archlve and dlsplay prolects. The donor of the fund ha5 agreed that the donation can also be used for the development project if required. The Project Eagle development fund represents funds ralsed towards ph35e11 of Project Ea81e. Page 31
Army FlylnB Museum Llmlted Company number: 2109510 Notes to financial statements for the year ended 28th February 2023 The Memorial Wall fund represents funds donated for the building of a wall to cornmemorate those that have lost their lives in the 5eNlce of BrStlsh Army Flyln8 at a cost of £310,000. The Cannon Display fund represents a donation from Major R.W Hogarth R.A (Retired) for the purpose of making a suitable display cabinet for a Scale model of a Waterloo Nine Pounder Cannon. The National Lottery Heritage EmÈr8èn¢y fund was received toward5 thecost of the websiie aftd oiher equiprnent. A total of £8,596 wa5 tran51erred to unrestricted fund5 to reflect expenditure Incurred on fixed a55ets in accordance with SORP FRS 102 SectSon 2.26. Sufflclent resources are held to enable each fund to be applied in accordance with any restridion5. 19. Analysis of net assets between funds TanBlble Net Current ProvSslons for Flx•d Asso1$ Assets Uabllltles 2023 Unrestricted fund5 Restrlcted funds 1,074,868 819,594 144,074 172,654 1,218,942 992,248 1,894,462 13,393 316,728 28,396 2,211,190 41,789 Non charltable tradln8 funds 1,907,855 345,124 2,252,979 Included In the above flgures Is the revaluation reserve: Revaluatlon r•ser¥e 340,782 340,782 Tanilbl• N•t Current Prov5slons for AK•d As5•ts 5•ts Uabllltles 2022 Unrestricted funds Restricted funds 1,096.766 1,036,372 213,222 172,186 1,309,988 1,208,558 2,133,138 28.440 385,408 16,945 2,518,546 45,385 Non charltable tradln8 fund5 2,161,578 402,353 2,563,931 Included In the 8bove figures Is the revaluatlon reserve,. Revaluatlon reserve 340,782 340,782 20. Commltments and cont•ngent Ilabllltles The charlty had capltal commitments contracted for but not provlded for In the flnancSal statements amountSng to £Nil12022'. £Nill. There wère no contin8ent liabilities at 281h February 202312022: £Nill. Page 32
Army Flylng Museum Llmlted Company number: 2109510 Notes to flnancial statements for the year ended 28th February 2023 21. Taltsn All of the charlty's Income15 applied forcharitable purposes and therefore the charity 15 exempt from cofporatlon tax. The charity's trading subsidiary had a corporation tax liability of £Nil as at 28 February 2023. 22, Related party tran5actlon5 Theie were no related party transactlons. 23, Ultlmate controlllng party The tsltlmate controllln8 party Is the Board of Trustee Olrectors. 24. Analysls of change5 In net funds Group Openln8 balince Cash flow5 Clojlni Cash at bank and in hand 397,981 135,9631 362,018 Net fund$ 397,981 135,9631 362,018 Charlty Openlni balance Cash flows Closlnl balance Cash at bank and In hand 358,359 127,6971 330,662 Net funds 358,359 127,6971 330,662 25. Flnanclal Instruments The carryin8 amounts of the group's fSnancial Instruments are as follows.. 20Z3 2022 Flnancljl asjets Debt tnstruments rnea5ured at amortised cost.. Trade debtors Inote 161 Other taxes and social securlty Inote 161 Other debtor5 (note 161 2,413 2,236 S,245 4,579 7,658 7,296 Flnandal Ilablllties Measured at arnortised cost.. Trade creditors (note 171 Other taxes and 50clal security Inote 171 Other creditors (note 171 1,903 13,321 4,766 4,939 8,335 5,458 19.990 18,732 Page 33