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2023-12-31-accounts

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Royal Aeronautical Society

Trustees’ Annual Report and Accounts Year Ended 31 December 2023

Charity Registration Number: 313708 Incorporating: Charity Registration Number: 1013530 Charity Registration Number: 1045004

ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2023 Report of the Board of Trustees for the year ended 31 December 2023

The members of the Board of Trustees are pleased to present their annual report and financial statements of the Society for the year ended 31 December 2023.

The Trustees confirm that they have complied with the Charities Act 2011 to have due regard to public benefit guidance published by the Charities Commission in determining the activities undertaken by the Society. The financial statements have been prepared in accordance with the accounting polices set out in note 1 to the accounts and comply with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (second edition October 2019) - (Charities SORP (FRS 102)).

The guiding principles of the Royal Aeronautical Society (“RAeS”) are embodied in this extract from the Society's Royal Charter: “The objects and purposes are the general advancement of aeronautical Art, Science and Engineering and for promoting that species of knowledge which distinguishes the profession of Aeronautics (which expression includes Astronautics)”.

The Society provides free lectures and access to the National Aerospace Library to encourage the public to engage in aerospace and aviation. Membership is open to those who have an interest or pursuing a career in aviation and aerospace.

Objectives and Activities

The Society is the only global organisation serving the entire aviation, aerospace and space community as both a learned society and a professional body.

As such, the RAeS is independent, evidence-based and authoritative, relying on a body of knowledge going back more than 150 years. We playa leading role in influencing opinion on aviation and aerospace matters through various means including our publications, social media profile, interaction with Governments, and an extensive events programme.

Our mission is to:

The Society aims to achieve its mission and vision through the following strategic aims:

  1. Promote the Society's role as the source of authoritative impartial, evidence-based aerospace, aviation and space knowledge and policy advice.

  2. Maintain, enhance and disseminate the Society's body of knowledge in all aerospace, aviation and space domains.

  3. Extend and support the Society membership base nationally and internationally, ensuring inclusivity, diversity and active engagement.

  4. Encourage the younger generation to enter the aerospace, aviation and space professional world.

  5. Enhance the Society global outreach through existing and new Divisions and Branches, and through the Corporate Partners

  6. Implement all Society activities in an efficient, professional and sustainable manner, maintaining the financial stability of the Society.

Achievements and performance

The goals for the Society's charitable and professional activities in 2023 were focussed on a number of key areas to continue working on delivering the strategic aims and meet charitable objectives. Success is measured through benchmarking key metrics, setting growth targets and gathering data on agreed outcomes and impact to determine trends and improvements.

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ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2023

The completion of the Relevance Project delivered input from across the membership and wider stakeholders on what the Society will have to provide, and where so that it will be relevant to current members, and potential members of the future. The data and analysis will be reviewed to take forward into the next corporate plan.

The review of by-laws was approved by Privy Council and successfully implemented achieving the objective to streamline governance, and benchmarking has been set to measure the extent to which all paying members vote in General Elections.

The Society achieved its goal to be approved for a new L7 Systems Engineer Standard and will develop over the coming year for future delivery.

Building on The Aeronautical Journal’s status as a Transformative Journal, a record number of 357 papers were submitted for review achieving the objective to increase submissions and attract a broader range of research papers.

In terms of delivering of our responsibilities to provide public benefit, technical and policy papers on contrail management and sustainability were published however the Mental Health and Wellbeing paper was delayed until publication in 2024.

The aim of increasing engagement with UK MPs was boosted by research undertaken on recognition of the Society amongst politicians which has increased over the past 2 years.

The Society’s outreach programmes continued to encourage new generations to enter the industry with Phase 2 of the Falcon 2 Flight Simulator programme initiated, and the Education & Skills team participated in National Apprenticeship Week 2023 in March, the Big Bang Fair in June and RIAT in July.

Developing our Membership

Promoting professional standards

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ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2023

Promoting professional standards

Sharing knowledge and stimulating debate

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ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2023

Influencing opinion

Inspirational outreach programmes

Recognition and celebration outstanding achievements

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ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2023

Royal Aeronautical Society Foundation — Fundraising

Since 2008/2009 the Foundation has focused on promoting Gift Aid to the Society’s membership and ensuring that these funds are used to support the Society's charitable objectives. In 2023, The Society did not undertake any fundraising activity requiring disclosure under S162A of the Charities Act 2011. The Foundation has however continued to support a number of projects totalling £6,392 (2022: £8,732) with the following projects being supported:

Financial Review

As a registered charity the Society is required to prepare its accounts under the Statement of Recommended Practice (SORP FRS 102).

In the accompanying Statement of Financial Activity (SOFA) expenditure includes both the direct cost of the activity plus supporting costs which are apportioned on a basis consistent with the use of resources and is based on either the number of staff working on that activity or time allocated to support the activity. When comparing income against expenditure some activities such as Careers and Education, National Aerospace Library (NAL) and Publications and Information showa loss for the year. However, it should be noted that these activities are also supported by Membership Income which is not reallocated in the SOFA and are part of the benefits supplied by the Society to its members.

The Trustees have considered a number of factors in concluding that the adoption of a going concern basis in the preparation of these financial statement is appropriate. This includes a review of the budget and forecast including cash flow for up to December 2028 and the review of risks facing the charity. These forecasts incorporate key challenges surrounding the impact from ongoing cost of living crisis and have considered sensitivities surrounding our income in particular on Venue Hire. The Society has a strong portfolio of investment and financial performance and these continue to be monitored regularly. The Trustees have reviewed the key assumptions within forecast and satisfied that the current level of free reserves and cash balances are adequate to meet the Society's obligations as they fall due.

Income

Total income increased by 2.7% to £5,944,376 with total unrestricted income increasing by 1.7% to £5,685,241.

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ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2023

Expenditure

Expenditure increased by 6.2% to £4,941,370 with total unrestricted spending increasing by 6.9% to £4,800,276 as a result of the Society returning to in-person events and office usage.

Surplus

The net incoming resources (before losses on investments) for the year produced a surplus of £1,003,006 (2022: £1,134,039). During the year, the Society had gains on its investment of £14,934 and actuarial losses on the Society’s Pension Scheme of £82,000. The net movement of funds for the year was a surplus of £935,940 (2022: £1,448,236).

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ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2023

Risk Management

The Board of Trustees establishes and periodically reviews the Risk Register. This is actively managed by the Audit Committee. The Chief Executive and Audit Committee are responsible for ensuring that risk registers and management plans are reviewed regularly by the executive staff and at appropriate governance meetings, and that risk-management plans are acted upon, updated, and monitored to eliminate, minimise, or otherwise avoid identified risks. They are also responsible for highlighting risk developments to the Board of Trustees throughout the year.

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ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2023

Reserves Policy

Unrestricted Reserves and Designated Funds

The Finance Strategy was extended for an additional year covering the period 2018-2023, which was approved by the Trustees in March 2022 and is reviewed annually by the Finance Committee; the Finance Strategy will enable the Society to meet its Strategic Objectives to 2024 by:

At the end of 2023, the Society’s liquid reserves (Free, Mortgage and Premises, Flight Simulations, No4HP refurbishment, Designated IT and RAeS Foundation Reserves) stood at £3,668,274 (2022: £2,903,369); this is 199.4% (2022: 174.8%) of the reserve target of the equivalent to at least six months’ operational costs of £1,839,990 (2022: £1,660,758); the Society achieved the Reserves target (as outlined in the Finance Strategy).

At the end of 2023 unrestricted reserves and designated funds were as follows:

Free Reserve

The Trustees have reviewed its Finance Strategy, covering the period to 2023. The Trustees have decided that in view of the considerable uncertainty which characterises the current economic climate the Society should concentrate its efforts on re-building its unrestricted reserves and hold any additional cash (on interest bearing deposits) to cover any income shortfalls; at the end of 2023, the balance of the fund was £3,173,532 (2022: £2,402,289). This excludes fixed assets, loan on property and designated funds.

Royal Aeronautical Society Foundation

The Foundation was setup in 2006 by the Trustees to organise and co-ordinate support for the Society’s wider charitable activities such as supporting aviation heritage projects supporting the next generation of aerospace professionals, as well as supporting the development of No.4 Hamilton Place (including repaying of the mortgage). This fund is a Designated Fund, and the Foundation Committee (on behalf of the Trustees) will decide each year which projects to fund out of this reserve. In 2023 the fund received £54 (2022: £260,761) from other income, no funds were received from Gift Aid in 2023 since the claims are pending until 2024. During the year, the Trustees released £6,392 (2023: £8,733) to support various charitable projects (educational/school projects); the fund balance stood at £254,941 at the end of 2023 (2022: £261,279).

Pension Fund Reserve

Under FRS102, and in accordance with SORP, this reserve has been setup to reflect the liability of the Defined Benefits Pension Scheme which shows a pension scheme asset at the end of 2023 and 2022. The Trustees feel that the recoverability of the asset is too remote and has not recognised the asset in the accounts in 2023.

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ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2023

At the end of 2023 there were four Designated Funds as follows:

Flight Simulation Sponsorship Fund

Over the past couple of years, the Society has received sponsorship to support the Flight Simulation Group activities (events); there had been no movement in 2023. At the end of the year the fund stood at £51,336 (2022: £51,336).

Mortgage and Premises Reserve This fund was setup in 2012 to be used to fund future capital improvements projects and to pay off the mortgage on the Society’s HQ. At the end of 2023, the balance of the fund stood at £6,836 (2022: £6,836).

No.4 HP Refurbishment Project Fund

This fund was setup by the Trustees in 2019 to be used to fund the refurbishment and redecoration of the offices on the 4'n and 5 floors in 2020 and 2021, however since the pandemic and the introduction of hybrid working this continues to be under review. At the end of 2023, the fund stood at £100,000 (2022: £100,000).

Designated IT Future Fund This fund was setup by the Trustees in 2021 to be used to fund the IT projects to enhance and develop the digital capability of the Society. The IT project will start from 2024. At the end of 2023, the fund stood at £81,629 (2022: £81,629).

Restricted and Endowment Reserves

Restricted Funds

Alan Snudden Fund — Restricted This is an Endowment Fund established to provide scholarships to young person's entering, or already engaged in, the air transport operating industry. The founding deed (1992) allowed the Trustees to initially accumulate unspent income into the Endowment Fund. However, the deed now allows the Trustees to hold the income generated in a restricted fund and this was setup in 2017. There were no activities in 2023. The fund received a total of £5,396 (2022: £5,373) from investment income; at the end of 2023, the fund stood at £37,600 (2022: £32,938).

ALTA

This fund was created from donations from a number of organisations to support the ALTA Mentoring Platform launched in 2019; the platform was setup for women in aerospace and aviation who are seeking woman-to-woman mentoring support with easy access to professional women working in the sector. In addition, the fund supports face-to-face networking events and research to provider greater support to women's retention and promotion within the industry. In 2023, the fund received a total of £2,642 (2022: £1,149) the fund stood at £4,852 (2022 £2,243) at the end of 2023.

Project Altitude — Boeing

In 2020, Boeing agreed to support various projects within the Society, one being Project Altitude; the aim is to encourage young people to become the innovators of tomorrow; the fund will support various STEMbased activities and events aimed at Primary, Middle and High Schools as well as young people just starting their careers. In 2023, the fund received a total of £38,177 and the fund stood at £103,272 (2022: £77,537) at the end of 2023.

RAeS Future Scholarship Fund (Formerly Centennial Scholarship Fund)

The Centennial Scholarship Fund was ceased in December 2020 and the balance of fund was transferred to RAeS Future Scholarship Fund from January 2021. The aim of the fund is to support funding costs for internships in the Aerospace sector to give the recipient an insight into working in the sector and enhancing the individuals Professional Development. In 2023, the fund received a total of £11,460 from donations and investment income and the fund stood at £249,740 at the end of 2023 (2022: £243,651).

Flying Start Challenge

This fund was setup in 2020 from donations from a number of Corporate Partners with the aim to support Flying Start Challenge; an annual competition aimed at providing secondary school students to design a glider; the competition is run and manged jointly by the participating organisations. In 2023, the fund received a total of £7,750 from donations and investment income. At the end of 2023, the fund stood at £5,641 (2022: £5,190).

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ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2023

Kremer Fund

The Kremer Fund provided by the late Henry Kremer for the promotion of Human Powered Flight and are administered by the Society. There are four prizes set aside:

Robert Graham Competition £500
Kremer HPA Schools Competition £1,000
Kremer International Marathon Competition £50,000
Kremer InternationalSportingAircraftCompetition £100,000

The assets of this fund are held.as cash deposits and this fund paid out a total of £2,000 covering prizes in 2023; at the end of 2023, the fund balance stood at £160,191 (2022: £161,541).

Michael Bishop Foundation Fund

The Fund was setup in 2019 by the Trustees from a donation of £25,000 from Lord Glendonbrook/Michael Bishop Foundation to fund the Sir Ralph Robins Medal; this award is given to individuals demonstrating excellence in Engineering Leadership. At the end of 2023, the fund stood at £16,453 (2022: £16,453).

National Aerospace Library (NAL)

An appeal was started in 2004 towards the creation of a National Aerospace Library (NAL). In 2008 the Society opened a branch of the NAL within the Hub Building at Farnborough. In 2009 this facility was expanded and now houses the vast majority of the Society’s historic library collections. The fund is used to support some of the ongoing operations of the NAL at Farnborough as well as future capital projects. During the year, a total of £7,078 (2022: £7,047) was received from donations and investment income and at the end of 2023 the fund stood at £153,067 (2022: £146,459).

RAF Chair in Air Power Studies

In 2008 the Society began (with support from the RAF) to raise funds for the Chair in Air Power Studies with the aim of establishing an independent academic Research Fellow at a UK university. By 2015 the Society had received donations totaling £624,000 from a number of Corporate Partners and these funds have helped to consolidate the senior academic post at the University of Birmingham and now support ongoing research in this area. At the end of 2023 the fund stood at £14,542 (2022: £14,542).

Falcon 2 (Formerly School Build-a-Plane Challenge)

In 2008 the Society launched the Schools Build-a-Plane (SBAP) Challenge which aims to provide young people in UK secondary schools with the opportunity to build a real light aircraft from kits, giving them hands-on experience of building aircraft and an understanding of scientific and engineering principles behind flight. This project is supported by funding from The Boeing Company (USA) and sales of the completed aircraft. From 2023, the fund balance will be spent towards the Falcon 2 Initiative which is an extension of the SBAP programme. At the end of 2023 the fund stood at £23,734 (2022: £23,446).

World Skills

In 2021, the Society received a grant from World Skills UK who are an independent charity and work with employers, education and governments. They are a proud member of WorldSkills, a global movement of over 80 countries. WorldSkills supports young people across the world via competitions-based training, assessment and benchmarking, with members’ national teams ultimately testing their ability to achieve world-class standards in the biennial ‘Skills Olympics’. This covers the management and delivery of skills in the Aircraft Maintenance competition activity. At the end of 2023, the fund stood at £4,775 (2022: £1,255).

AAU Outreach Fund

In 2022, the Society received a donation from Association of Aerospace Universities (AAU) after dissolution, in accordance with the wishes of the members and office holders. The fund was set up to support the Society towards outreach activities within Aerospace and Aviation. There were no activities in 2023. At the end of 2023, the fund stood at £23,429 (2022: £23,429).

DFT & CAA Sky Challenge Fund

In 2023, DFT and CAA joined Boeing as one of the supporters for the Falcon 2 Programme. The contribution from industry and government will allow for the delivery of a national outreach programme empowering students of all ages and abilities to experience the thrill of flight and variety of careers in aviation through the pathways highlighted within the programme. At the end of 2023, the fund stood at £25,589.

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ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2023

Endowment Funds

The Alan Snudden Fund, Awards Trust and the CAARC (Commonwealth Advisory Aeronautical Research Council) Fund are held in pooled investments which were referred to as the Common Investment Fund in previous accounts. These funds are subsidiary charities of the Society as explained in Note 13.

Alan Snudden Fund

This fund is established to provide scholarships to young persons entering, or already engaged in, the air transport operating industry. As noted under restricted funds, a new Restricted Alan Snudden Fund was setup in 2018 to hold the net income generated by the Endowment fund; at the end of 2023, the fund stood at £78,309 (2022: £77,933).

Awards Trust

This was created in 1995 from several separate funds held for the purposes of Medals, Merit Awards, Educational Awards and Lecture fees. With the agreement of the Trustees of the Society and the Charity Commission these separate funds were combined to give greater flexibility and more efficient use of those funds. In 2022 this fund paid out a total of £5,200 to cover grants and awards and at the end of 2023 the fund stood at £1,260,813 (2022: £1,216,710).

CAARC Fund

Through the Awards Trust, the Society administers the Commonwealth Advisory Aeronautical Research Council (CAARC) Bursaries. Grants were made in the year to a number of Commonwealth and UK candidates, however due to the cancellation of awards from previous years the fund received a net increase on grants to offset some of the admin and investment costs; at the end of 2023, the fund stood at £17,085 (2022: £16,209).

The Directors of Aeronautical Trusts Ltd, being the Trustees of the above funds, confirm that each has sufficient assets to fulfil its obligations.

Investments

Investments Policy

The investment advisors JM Finn & Co (appointed January 2013) manage the Society’s investments in accordance with powers delegated by the Board of Trustees. There are no restrictions on the powers of the Board of Trustees to invest under the Royal Charter. The Finance Committee is responsible for reviewing the performance of the investments each quarter as outlined below.

Investment funds

This was set up to defray the running expenses and support the grant making (Restricted and Endowment Funds) activities of the Society. Since 2005 income generated is reinvested back into the fund.

At the end of 2023, the investments stood at £3,748,149 (2022: £3,592,563); over the past 12 months investments have increased by 4.3% (against the target of RPI + 4%), though was up on the benchmark 7.9% (FSTE All Share Index). Overall, the Trustees were satisfied that the investment advisors had done all they could to protect the Society’s investments considering the volatile economic and political background in 2023; since they took over in 2013 the investment advisors have produced an overall return of 66.8%.

Risk/Investment strategy

The investment strategy minimises the level of risk required to meet the return objectives, subject to achieving a level of diversification across assets classes both within the UK and overseas markets. The high levels of stock market volatility and the continuing uncertainty regarding world economic prospects and the stability of certain banks continues to make the management of investments difficult. The charity is a long-term investor and the Trustees, on professional advice, continue to hold a mixed portfolio of equities, bonds, cash, and other investments designed to provide a level of stable income and the possibility of investment gains. The equity component of the investment portfolio is weighted with medium appetite for investment risk with the main exposure to investments in the leading advanced industrial economies with a history of paying dividends.

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ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2023

The Society does not have any ethical restrictions on its investments. However, the Finance Committee (on behalf of the Trustees) will take reasonable steps to ensure that investments are not made in institutions that, to its knowledge, operate policies or have objectives that are opposed to the aims of the Society.

The Finance Committee agreed the asset allocation with the investment advisors, and this is reviewed on a quarterly basis. In 2023 the Finance Committee authorised the investment advisors to make short-term changes to the asset allocation to reflect market conditions and to give better opportunities for income and capital growth. At the end of 2023, the asset allocation was as follows:

Asset Distribution
FundBreakdown
BenchMark Range %as at
31/12/2023
a 17.5%
60.0%
:		 12.5-22.5%
Alternatives (Property/Infrastructure)
Accured Interest/Other		 17.5% 12.5-22.5%
0-10%		 11.55%
0.89%
01
100.0%

Plans for future periods

Supporting the future of aerospace, aviation and space

We are now approved to deliver the Systems Engineer — ST0107 (Level 7); development of delivery processes will be undertaken in the coming year. We will also be reviewing our EPA offering and exploring new opportunities within this area of the Society’s activity.

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ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2023

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ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2023

Structure, Governance and Management

The Society is a Professional Membership Body and Learned Society holding a Royal Charter. {t is established as a Charity under the terms issued by the Charity Commission. The Charter of Incorporation and the By-Laws form the code that governs the Society.

The Society has 4 international divisions, 13 international branches and 36 UK branches. Each branch is run by a committee of volunteers and office holders within each committee include Chair, Secretary and Treasurer.

The Board of Trustees is the governing body of the Society. It establishes and reviews the policies, strategy and business plan of the Society, ensuring that the Objects of the Society, its administration, and management of its finances (including its assets and investment portfolio) and property are upheld in compliance with the Society's Royal Charter and By-Laws and the law.

The Board of Trustees may delegate to any Board or Committee such powers and duties as it sees fit and the law and good practice for charities allows, but the Board of Trustees remains responsible for the actions of such Boards and Committees and the Board of Trustees may dissolve a Board or Committee at any time. The current Boards of the Board of Trustees are: The Learned Society Board (LSB), The Membership Services Board (MSB), and The Professional Standards Board (PSB). The Next Generation Board (NGB) will be established in 2024. The Board of Trustees has delegated the responsibility to the Finance Committee for directing the Society finances and developing sound financial practices and policies which protect and enhance the Society’s finances and assets. The Audit Committee supports the Board of Trustees in monitoring the adequacy of the Society's governance, risk management, internal audit, and control processes through offering objective advice.

Members of the Council are elected, usually for a three-year term, by the voting members of the Society. The election takes place annually and the results are announced at the Society’s Annual General Meeting (in May each year). The President is elected from within the Council approximately 18 months before taking office (from the AGM). Presidents serve a term of one year only. In the 12 months prior to taking office the President serves as President-Elect of the Society and in the 12 months after their one-year term the President serves as the immediate Past President of the Society. The President, President-Elect and Past President are ex officio members of the Council and Board of Trustees. The 6 other Trustee roles are recruited from open applications, with the process developed by the Nominations Committee.

The Society encourages all Trustees to attend training courses relating to their role and responsibilities as Trustees and a Trustee Training log is maintained.

The day-to-day management of the Society is delegated to the Chief Executive (“CE”) who is responsible for all operational matters, including the implementation of the Strategic Review; the CE is supported by the Executive Team which comprises of the Financial Controller, two operational directors covering Knowledge (including, Community Engagement, Events, Knowledge and Information and IT), and Membership and Professional Standards. The Chief Executive consults closely with the Chair of the Board of Trustees and the President over issues of significance and ensures the staff are managed effectively. All Trustees give their time freely and no Trustee remuneration was paid in the year. Details of Trustee expenses and related party transactions are disclosed in note 4 to the accounts. Trustees are required to disclose all relevant interests and register them with the Chief Executive and, in accordance with the Society's policy, withdraw from decisions where a conflict of interest arises.

The pay of the Society's Chief Executive is reviewed annually and normally increased in accordance with average earnings. When the Chief Executive or Executive Team member is appointed, the remuneration is bench-marked with other membership and professional bodies of a similar size and activity to ensure that the remuneration set is fair and not out of line with that generally paid for similar roles. The pay of the Executive team is reviewed annually and any increase is approved by the Chief Executive.

The Chief Executive, boards and committees that report to the Trustees, prepare reports for each Trustee meeting. Each year the Annual Report and Annual Accounts are approved by the Trustees and are available to all members via the Society’s website.

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ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2023

Reference and Administrative Details

Name/Registered charity number:

Royal Aeronautical Society

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313708
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Subsidiary charities:

The Royal Aeronautical Society Awards Trust 1045004 Alan Snudden Memorial Trust Fund 1013530

Subsidiary Companies:

Aeronautical Trading Limited 03243525 Aeronautical Trusts Limited 00239631

Registered Address:

No.4 Hamilton Place, London, W1J 7BQ, UK

The following were Trustees for all or part of 2023:

M Broadhurst OBE MA CDir FloD FRAeS (Chair of the Board of Trustees - Resigned May 2023) Air Cdre Peter Round FRAeS (Chair of The Board of Trustees - Appointed May 2023) & (Past President) Kerrissa Khan MRAeS (President)

David Chinn FRAeS (President-Elect Appointed June 2023) Howard Nye FRAeS Lt Cdr R Gearing BEng(Hons) CEng FRAeS MCGI MCMI Dr Alisdair Wood EngD CEng FRAeS Andrew Cowdery FRAeS Andy A Allen FRAeS S Moynihan FCA CRAeS

The following are in attendance at the meetings of the Board of Trustees:

D Edwards FRAeS, Chief Executive

L Price, Head of Governance & Compliance

P Mensah, Director of Membership and Professional Standards (for September 2023 meeting only) R Saaristo, Council member (for November 2023 meeting only)

Directors of Aeronautical Trusts Limited:

D Edwards FRAeS, Chief Executive

S Moynihan FCA CRAeS

Executive Team:

D Edwards FRAeS, Chief Executive

E Bossom, MRAeS, Director of Knowledge and Networks (Maternity leave March to December 2023) C Betts, Director of Operations (Maternity cover — appointed February 2023) P Mensah, Director of Membership and Professional Standards ANg, Financial Controller

Advisors

Auditors:

Crowe U.K. LLP, 4th Floor, St James House, St James’ Square, Cheltenham, GL50 3PR, UK

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ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2023

Bankers:

HSBC Bank plc, West End Corporate Centre, 4th Floor, 133 Regent Street, London, W1B 4HX, UK

Reference and Administrative Details (continued)

Investment Managers:

JM Finn & Co, 25 Copthall Avenue, London, EC2R 7AH, UK

Pension Advisors:

GPP Scheme

Kerr Henderson (Financial Services) Ltd, 29-32 College Gardens, Belfast BT9 6BT, UK

Defined Pension Scheme (Closed)

ISIO Group Limited, 27-45 Great Victoria Street, Belfast BT2 7SL, UK

Solicitors:

Clyde & Co, 51 Eastcheap, London EC3M 1JP, UK.

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ROYAL AERONAUTICAL SOCIETY REPORT OF THE TRUSTEES FOR YEAR ENDED 31 DECEMBER 2023

Statement of the responsibilities of the Board of Trustees

The law applicable to charities in England and Wales requires the Board of Trustees to prepare financial statements for each financial year which give a true and fair view of the of the charity and group and of the financial activities of the group for that period. in preparing those financial statements the Board of Trustees is required to:

The Board of Trustees is responsible for keeping accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable the Board of Trustees to ensure that the financial statements comply with applicable law. The Board of Trustees is also responsible for safeguarding the assets of the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

For the purpose of this statement the group comprises the Royal Aeronautical Society and subsidiary charities and companies as outlined in Note 18 within the notes accompanying the Financial Statements.

Website Financial statements are published on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the charity's website is the responsibility of the Board of Trustees. The Board of Trustee’s responsibility also extends to the on-going integrity of the financial statements contained therein.

Financial statements These financial statements reflect the requirements of the Statement of Recommended Practice: Accounting by Charities. The financial statements comply with the statutory requirements and the Society’s Charter and By-Laws.

cS) fe [a -\¢San e n Air Cdre Peter Round FRAeS Chair of the Board of Trustees

Date: 25 March 2024

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ROYAL AERONAUTICAL SOCIETY FOR YEAR ENDED 31 DECEMBER 2023

Independent Auditor’s Report to the Members of Royal Aeronautical Society

Opinion

We have audited the financial statements of Royal Aeronautical Society for the year ended 31 December 2023 which comprise Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Charity Balance Sheet, Consolidated Cashflow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

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ROYAL AERONAUTICAL SOCIETY FOR YEAR ENDED 31 DECEMBER 2023

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement set out on page 17, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group's and the parent charity's 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 trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks within which the group and charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 together with the Charities SORP (FRS 102).

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be recognition of grant income, publications, events and commercial venue hire income and legacy income, and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing regulatory correspondence with the Charity Commission, designing audit procedures over the completeness and timing of grant income,

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ROYAL AERONAUTICAL SOCIETY FOR YEAR ENDED 31 DECEMBER 2023

publications, events and commercial venue hire income and legacy income, reading minutes of meetings of those charged with governance and reviewing accounting estimates for biases.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: w.frc.orq.ukauditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them 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 charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Crowe U.K. LLP

Statutory Auditor

Cheltenham

Date: 08 April 2024

Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

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ROYAL AERONAUTICAL SOCIETY FOR YEAR ENDED 31 DECEMBER 2023

Consolidated Statement of Financial Activities (SOFA)

Unrestricted Restricted Endowments Designated Total2023 Total2022
Not
ote		 Funds Funds {Subsidiary
Charities)		 (8ranches)
Funds
Funds
£ £ £ £ £ £
Incomeand endowments from:
Donations&Legacies 255,936 93,989 - 79,993 429,918 385,035
Charitable Activities 4,411,593 - - - 4,411,593 4,459,078
OtherTradingActivities 887,896 - - - 887,896 772,812
Investments 129,816 85,153 - - 214,969 168,394
Total 2 5,685,241 179,142 - 79,993 5,944,376 5,785,319
Expenditure on:
RaisingFunds 582,674 13,286 - - 595,960 555,809
CharitableActivities 4,217,602 53,930 - 73,878 4,345,410 4,095,471
Total 5 4,800,276 67,216 - 73,878 4,941,370 4,651,280
Netincome/{expenditure) before
gainsoninvestments		 884.965
,		 111.926
'		 . 6.115
’		 4,003,006
wv		 1,134,039
om
Net(losses\gains on investments 8 7,304 1,769 5,861 - 14,934 (842,966)
Netincome/{expenditure) 892,269 113,695 5,861 6,115 1,017,940 291,073
Transfers betweenfunds 13-45 (31,400) (39,494) 39,494 31,400 - -
860,869 74,201 45,355 37,515 1,017,940 291,073
Otherrecognised (losses)/gains:
Netactuarial (losses)/gains onPension
Scheme
Netmovement infunds		 20 (82,000)
:
778,869		 .
74,201		 .
45,355		 .
37,515		 (82,000)
’
935,940		 798,333
"
1,089,406
Balance at 1 January 13-15 10,997,727 748,684 1,310,852 359,706 13,416,969 12,327,563
Fundsat31December 11,776,596 822,885 1,356,207 397,221 14,352,909 13,416,969

All amounts relate to continuing activities. The notes 1 to 20 form part of these financial statements.

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ROYAL AERONAUTICAL SOCIETY FOR YEAR ENDED 31 DECEMBER 2023

Consolidated Balance Sheet

----- Start of picture text -----
|||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---| |Note|Total|Total| |2023|2022| |£|£| |Fixed|Assets| |Property|-|Land|t|§ 527,222|§|527,222| |Property|-|Property|7|2,667,915|2,695,139| |Fixtures|and|Equipment|7|473,037|160,447| |Heritage|Assets|at|Valuation|7|410,843|410,843| |Website|Development|t|49,719|52,739| |Investments|at|Market|Value|8|3,748,149|3,592,563| |12,576,885|12,438,953| |Current|Assets| |Debtors|9|757,705|778,357| |Cash|at|bank|and|in|hand|3,623,338|2,481,705| |4,381,043|3,260,062| |Less:|Current|Liabilities| |Creditors|10|(1,857,630)|(1,499,849)| |(1,857,630)|(1,499,849)| |Net Current|Assets|2,523,413|1,760,213| |Total|Assets|Less Current|Liabilities|15,100,298|14,199,166| |Creditor due|after one|year|i|(747,389)|(782,197)| |Defined|Benefit|Pension|Scheme|Liability|20|-|-| |NET ASSETS|14,352,909|13,416,969| |Represented|by:| |Restricted|Reserves|14|822,885|748,684| |Endowments|13|1,356,207|1,310,852| |Designated|Funds|-|Branches|16|397,221|359,706| |Unrestricted|Reserves| |Unrestricted|Reserves|15|11,776,596|10,997,727| |Unrestricted|Reserves|Excluding|Pension|Liability|11,776,596|10,997,727| |Pension|Reserve|20|-|-| |Total|Unrestricted|Reserves|11,776,596|10,997,727| |TOTAL|RESERVES|14,352,909|13,416,969| |The|notes|1|to|20|form|part|of these|financial|statements.| |These|financial|statements|were|approved|and|authorised|for|issue|on|behalf|of|the| |Royal|Aeronautical|Society|on|25|March|2024.| |h >.|Sarah Moynihan (Mar|26, 2024 16:26 GMT)| |Air|Cdre|Peter|Round|FRAeS|S|Moynihan|FCA CRAeS| |Chair|of the|Board|of|Trustees|Trustee|

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These financial statements were approved and authorised for issue on behalf of the Trustees of the Royal Aeronautical Society on 25 March 2024.

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ROYAL AERONAUTICAL SOCIETY FOR YEAR ENDED 31 DECEMBER 2023

Charity Balance Sheet as at 31 December 2023

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |Note|Total|Total| |2023|2022| |£|£| |Fixed|Assets| |Property|- Land|7|5,527,222|5,527,222| |Property|-|Property|7|2,667,915|2,695,139| |Fixtures|and|Equipment|7|173,037|160,447| |Heritage Assets|at Valuation|7|410,843|410,843| |Website|Development|7|49,719|§2,739| |Investments|at|Market Value|8|3,748,149|3,592,563| |Investments|in|subsidiary|undertakings|18|3|3| |12,576,888|12,438,956| |Current|Assets| |Debtors|9|710,376|725,981| |Cash|at|bank|and|in|hand|3,583,908|2,451,664| |4,294,284|3,177,645| |Less:|Current|Liabilities| |Creditors|10|(1,859,240)|(1,489,136)| |(1,859,240)|(1,489,136)| |Net Current Assets|2,435,044|1,688,509| |Total|Assets|Less Current|Liabilities|15,011,932|14,127,465| |Creditor due|after one|year|11|(747,389)|(782,197)| |Defined|Benefit|Pension|Scheme|Liability|20|-|-| |NET ASSETS|14,264,543|13,345,268| |Represented|by:| |Restricted|Reserves|14|822,885|748,684| |Endowments|13|1,356,207|1,310,852| |Designated|Funds|- Branches|16|397,221|359,706| |Unrestricted|Reserves| |Unrestricted|Reserves|11,688,230|10,926,026| |Unrestricted|Reserves|Excluding|Pension|Liability|11,688,230|10,926,026| |Pension|Reserve|20|-|-| |Total|Unrestricted|Reserves|11,688,230|10,926,026| |TOTAL CHARITY RESERVES|14,264,543|13,345,268|

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The notes 1 to 20 form part of these financial statements.

These financial statements were approved and authorised for issue on behalf of the Trustees of the Royal Aeronautical Society on 25 March 2024.

pani Air Cdre Peter Round FRAeS S Moynihan FCA CRAeS Chair of the Board of Trustees Trustee

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ROYAL AERONAUTICAL SOCIETY FOR YEAR ENDED 31 DECEMBER 2023

----- Start of picture text -----
||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---| |Consolidated|Cash|Flow|Statement| |For the Year ended|31|December 2023|Total|Total| |2023|2022| |Cash|flows|from|operating|activities|£|£| |Net|cash|provided|by|operating|activities|1,257,373|961,637| |Cash|flows|from|investing|activities| |Dividends,|Interest|and|rents|from|investments|214,969|171,909| |Purchase|of property,|plant|and|equipment|(158,439)|(203,272)| |Proceeds|from|sale|of investments|1,075,283|585,238| |Purchase|of investments|(1,215,935)|(723,771)| |Net cash|provided|by|operating|activities|1,173,251|791,741| |Cash|flows from|financing|activities| |Repayments|of|borrowing|(31,618)|(790,047)| |Net|cash|used|in|financing|activities|(31,618)|(790,047)| |Change|in|cash|and|cash|equivalents|in|the|reporting|period|1,141,633|1,694| |Cash and cash|equivalents|at the beginning|of the|reporting|2,481,705|2.480.011| |period| |Cash|and|cash|equivalents|at the end|of the|reporting|period|3,623,338|2,481,705| |Reconciliation|of|net|movement|in funds|to|net|cash|flow from|operating|activities:| |Total|Total| |2023|2022| |£|£| |Net income|for|the|reporting|period|(as per the|Statement|of|4,017,940|291,073| |Financial|Activities)| |Depreciation|charges|176,093|223,636| |Losses/(Gains)|on|investments|(14,934)|842,966| |Dividends,|Interest|and|rents|from|investments|(214,969)|(171,909)| |Decrease/(Increase)|in|debtors|20,652|(236,068)| |Increase|in|creditors|354,591|71,939| |Movement of pension fund contributions/pension|fund costs|(82,000)|(60,000)| |Net cash|provided|by|operating|activities|1,257,373|961,637|

----- End of picture text -----

Cash and cash equivalent are defined as bank accounts and short-term deposits which are ready convertible into cash.

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ROYAL AERONAUTICAL SOCIETY FOR YEAR ENDED 31 DECEMBER 2023

----- Start of picture text -----
Analysis of changes in net debt
1 January 2023 Cash Flows Other Non- 31 December
Cash changes 2023
£ £ £ £
Cash and cash equivalents
Cash and cash equivalents 2,481,705 1,141,633 - 3,623,338
Overdraft - - - -
2,481,705 1,141,633 - 3,623,338
Borrowings
Debt due within one year (31,547) 31,618 (32,521) (32,450)
Debt due after one year (720,485) 32,521 (687,964)
(752,032) 31,618 - (720,414)
1,729,673 1,173,251 - 2,902,924
----- End of picture text -----

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ROYAL AERONAUTICAL SOCIETY FOR YEAR ENDED 31 DECEMBER 2023

Notes to the Financial Statements

1. Accounting policies, judgements, and key sources of estimation uncertainty

a) The Society is a Professional Membership Body and Learned Society holding a Royal Charter. It is established as a Charity under the terms issued by the Charity Commission (registered number: 313707). The Charter of Incorporation and the ByLaws form the code that governs the Society. The registered office address is 4 Hamilton Place, London, W1J 7BQ.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (second edition October 2019) - (Charities SORP (FRS 102)) and with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

The Society meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

The Trustees have considered a number of factors in concluding that the adoption of a going concern basis in the preparation of these financial statement is appropriate. This includes a review of the budget and forecast including cash flow for up to December 2028 and the review of risks facing the charity. These forecasts incorporate key challenges surrounding the impact from ongoing cost of living crisis and have considered sensitivities surrounding our income.

The Society has a strong portfolio of investment and financial performance and these continue to be monitored regularly. The Trustees have reviewed the key assumptions within forecast and satisfied that the current level of free reserves and cash balances are adequate to meet the Society’s obligations as they fall due.

Taking into account the reserves position of the Society and the anticipated future results the Trustees do not consider that the appropriateness of this basis is subject to any material uncertainty.

b) The consolidated accounts include the activities, assets and liabilities of the Society, its subsidiary companies, subsidiary charities and branches. Further information on the subsidiaries is disclosed in note 18. No separate SOFA or cashflow statement has been prepared for the charity as is permitted by the Charities SORP.

Aeronautical Trading Limited is the trading company and subsidiary company of the Society and its results, assets and liabilities are included in the consolidated accounts. The trading company operates the Venue Hire operations of the building. These activities are consolidated on a line by line basis and have the same year end as the Society.

Aeronautical Trusts Limited is the subsidiary company of the Society and is the corporate Trustee of the subsidiary charities - Royal Aeronautical Society Awards Trust (1045004) and Alan Snudden Memorial Trust Fund (1013530). This entity is clearly distinguished throughout, being those amounts as ‘Endowments — subsidiary charities. No separate income and expenditure accounts are presented as the movement in endowment funds are not material.

The Royal Aeronautical Society Awards Trust registered in England and Wales (registered number: 1045004) is a subsidiary charity of the Society, this entity is clearly

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ROYAL AERONAUTICAL SOCIETY FOR YEAR ENDED 31 DECEMBER 2023

distinguished throughout, being those amounts as ‘Endowments — subsidiary charities. No separate income and expenditure account are presented as the movement in endowment funds are not material. The CAARC fund is shown asa distinct fund from the other funds of the Royal Aeronautical Society Award Trusts in these accounts. It is a specific fund administered within that charity.

Alan Snudden Memorial Trust Fund (1013530) is a subsidiary charity of the Society, this entity is clearly distinguished throughout, being those amounts as ‘Endowments — subsidiary charities. No separate income and expenditure account are presented as the movement in endowment funds are not material.

Branches were established to promote the Society's Charter and objectives through Society activities in the area local to the branch and to represent the Society locally and organise lectures and other events. These activities are included in the charity results and distinguished those amounts as ‘Designated — subsidiary Branches’. They have the same year end as the Society.

c) Income is generally recognised when the charity has entitlement to the funds, any performance conditions attached to the items of income have been met, it is probable that the income will be received, and the amount can be measured reliably.

Income from Events, Education & Skills, Venue Hire, Donations, NAL, Publication, Policy are accounted for at the time of event in the year. Income from donations is recognised on receipt of payment. Income from legacies is recognised where evidence of entitlement exists, the value is measurable with sufficient reliability, and on the earlier or the date of receipt of finalised estate accounts of the date of payment.

Grant income is recognised in the SOFA when received or when the charity becomes entitled to receipt. Grants that have been received will be treated as deferred income where there are specific requirements in the terms of the grant that the income recognition is dependent on certain activities being completed in a future accounting period.

Individual subscriptions income is recognised on the amount received for the year. Amounts received during the year in relation to the future years are deferred. The Corporate Partners Scheme is recognised on receipt as anticipated funds are not enforceable debts. Where income is received net of tax, any taxation recoverable is taken to income on receipt of the net amount.

d) Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. Redundancy and termination costs only occur where absolutely necessary and are accounted for on an accruals basis when commitment to terminate a post on the grounds of redundancy has been made,

Direct expenditure is allocated to categories of activity. Where expenditure cannot be directly allocated it represents support costs and is apportioned on a basis consistent with the use of resources, by reference to the number of staff working on each activity. Governance costs which are the statutory and organisational costs of operating the Society as a legal entity are included in support costs and apportioned consistently.

e) Quoted investments being a form of basic financial instrument are initially recognised at their transaction value and subsequently measured at their fair value at the balance sheet date using the closing market price.

Realised and unrealised gains on investments shown in the SOFA are taken to the fund for which the investments are held.

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ROYAL AERONAUTICAL SOCIETY FOR YEAR ENDED 31 DECEMBER 2023

Heritage assets are held at deemed cost and not depreciated.

g) Depreciation is provided on the following basis:

The Society only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

h) The operating leases are disclosed in the note 12 to the financial statements. Lease payments under operating leases are charged against income ona straight line basis over term of the lease.

Unrestricted and Designated funds represent amounts set aside by the Trustees as detailed within the reserves policy on page 8.

i) All employees of the Society may join the Group Personal Pension Scheme with Aegon (formerly Standard Life). The Society contributes according to a scale of contributions recommended by our Pensions Advisors, this scale being broadly designed to reproduce the scale of pensions they would have received on the basis of the old defined benefits scheme. The assets of the Group Personal Pension Scheme are paid into the Staff Member's individual accounts with the Aegon and all aspects are their own responsibility, although the Society provides free individual advice each year to the members from qualified professional advisors. The costs of the GPP are charged to the Statement of Financial Activities as they fall due.

In addition, there is a frozen defined benefit scheme to which the Society continues to contribute in order to fund past service costs. In 2023, the recent FRS102 valuation shows a pension scheme asset. Under the Governing documents the charity is entitled to a refund when the last payment is made. As the scheme is closed scheme for future accruals, the Trustees feel the recoverability of the asset is too remote and has not recognise the asset in these accounts (See Note 20).

k) The Society has charitable status and is exempt from taxation of its income and gains falling under with section 478 of the Corporation Tax Act 2010 or section 256 of the taxation of Chartable Gains Act 1992 to the extend they are applied to its chargeable objectives.

Freehold premises are held at the historic valuation of the leasehold originally acquired by the Society plus the additional cost of the subsequent purchase of the freehold and less the depreciation on property (not land).

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ROYAL AERONAUTICAL SOCIETY FOR YEAR ENDED 31 DECEMBER 2023

The heritage assets represent pictures, books and other items of Aeronautical interest held by the Society for which there are no readily identifiable market values, have an indefinite life and are therefore not depreciated. The Trustees have concluded a valuation in 1997 which on transition to FRS 102 has been used as deemed cost. The impairment on heritage assets is considered annually.

l) In the application of the accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparently from other sources.

The valuation of assets and liabilities of the Defined Pension Scheme are performed by a professional actuary. Fuller details are provided in note 20 and these include details of the actuarial assumptions adopted. There is a pension scheme asset at the year-end. As the scheme was closed to future accruals, the Trustees feel that the recoverability of the asset is too remote and this had not been recognised in the accounts as an asset on the balance sheet in 2023. In the opinion of the Trustees, these assumptions represent the only material areas of estimation uncertainty in the financial statements.

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ROYAL AERONAUTICAL SOCIETY FOR YEAR ENDED 31 DECEMBER 2023

2. Analysis of Income

The analysis of income and expenditure by fund represents the activities of the Society including membership and the activities of its subsidiaries.

Income: 2023 Unrestricted Restricted Endowments Designated Total
Funds Funds (Subsidiary (Branches) 2023
Charities) Funds
Funds
£ £ £ £ £
incomefrom Donations& Legacies
Voluntaryincome & donations 255,936 93,989 - 79,993 429,918
255,936 93,989 - 79,993 429,918
income from Charitable Activities
Education, Skills and Diversity 40,700 - - - 40,700
Conferences, events, seminars 425,596 - - - 425,596
EndPointAssessment 653,077 - - - 653,077
Library(NAL) 8,051 - - - 8,051
Membership sernices 3,099,832 - - - 3,099,832
Publications and information 184,337 - - - 184,337
Policy& Research - - - - -
4,411,593 - - - 4,411,593
Incomefrom OtherTrading Activities
Room hire services 886,425 - - - 886,425
Admin services 1,471 - - - 1,471
887,896 - - - 887,896
Investment Income
Investmentincome 129,816 85,153 - - 214,969
129,816 85,153 - - 214,969
Total 5,685,244 179,142 - 79,993 5,944,376

In 2023, The Society received £251 ,000 in legacies (2022: £260,687).

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ROYAL AERONAUTICAL SOCIETY FOR YEAR ENDED 31 DECEMBER 2023

2. Analysis of Income (continued)

Income: 2022 Unrestricted
Funds		 Unrestricted
Funds		 Restricted
Funds		 Restricted
Funds		 Endowments
(Subsidiary		 Designated
(Branches)		 Total
2022
Charities) Funds
Funds
£ £ £ £ £
incomefrom Donations& Legacies
Voluntaryincome&donations a 271,536
ee		 84,442 - 29,057 385,035
271,536 84,442 - 29,057 385,035
re
Incomefrom Charitable Activities
Education, Skills and Diversity 38,875 - - - 38,875
Conferences, events,seminars 540,411 - - - 540,411
End PointAssessment 737,575 - - - 737,575
Library(NAL) 8,306 - - - 8,306
Membership services 2,982,032 - - - 2,982,032
Publications andinformation 151,879 - - - 151,879
Policy &Research - - - - -
4,459,078 - - - 4,459,078
Incomefrom OtherTrading Activities
Room hire services
Admin services		 770,712
2,100		 -
-		 -
-		 -
-		 770,712
2,100
772,812 - - - 772,812
Investment Income
InvestmentIncome 87,128 81,266 - - 168,394
Total 87,128
81,266
-
-
168,394
ee
OOOOOO
ao
5,590,554
165,708
-
29,057
5,785,319

Page 31 of 50

ROYAL AERONAUTICAL SOCIETY FOR YEAR ENDED 31 DECEMBER 2023

3. Employee information

The average numbers of staff employed during the year was 48.5/46 FTE (2022: 44/40.7FTE).

2023 2022
£ £
Staffcosts (forthe above persons)
Salaries 1,910,742 1,726,203
Social security costs 163,241 189,701
Other pension costs 254,385 220,271
Temporary staffand other staffcosts 150,744 42,626
2,479,112 2,178,801

The charity contributes towards a defined contribution pension scheme. The cost of this scheme is charged to SOFA and amounted to £198,178 (2022: £220,271). The scheme did not give rise to any provision.

Employees receiving emoluments in excess of £60,000 (excluding pension contributions) fall within the following bands:

2023 2022
Number Number
£60,001 - £70,000 2 2
£70,001 - £80,000 1 -
£80,001 - £90,000 - 2
£90,001 - £100,000 1 -
£130,001 - £140,000 - 1
£150,001-£160,000 1 -

The key management personnel of the Society comprises the Board of Trustees and the Executive Team as listed on page 15. The total amount of employee benefits (including employer pension contributions) received by the Executive Team comprising the CE, three Directors (Head of Knowledge & Networks was on maternity leave) and Financial Controller for their services to the Society was £518,987 (2022: £399,188). Aggregate termination payments for the year were £11,171 (2022: Enil).

Trustees do not receive remuneration for their services. During the year the President was reimbursed £11,781 (2022: £9,540) and 2 (2022: 3) other Trustees were reimbursed £1,888 (2022: £1,044) in respect of travel and subsistence expenses incurred in performance of their duties.

In accordance with normal commercial practice the Society has purchased insurance to protect trustees and officers from claims arising from negligent acts, errors or omissions occurring whilst on Society business. The insurance provides cover up to £5,000,000 on any one claim and the cost for 2023 was £3,773 (2022: £3,432).

Page 32 of 50

ROYAL AERONAUTICAL SOCIETY FOR YEAR ENDED 31 DECEMBER 2023

4. Related party transactions

In 2023, The Society charged its subsidiary company Aeronautical Trading Limited £337,646 (2022: £338,753) in respect of administrative expenses which represents an allocation of overheads from the Society.

Under a Gift Aid declaration, Aeronautical Trading Limited will make a gift aid payment of the Charity of £88,366 (2022: £71,701).

The Aeronautical Trading Limited paid the charity £272,808 (2022: £452,568) of monies collected on invoices settled in 2023.

As at 31 December 2023, the charity owed the Aeronautical Trading Limited £49,359 (2022: £54,642).

There were no employment related transactions for any family of employees in 2023 (2022: £6,033). In 2022, the Society paid £6,033 to a close family of Financial Controller, who was on a temporary employment contract on data input entry for the Finance team within the Society and this was done on an arm length basis.

A number of Trustees hold senior positions in organisations in the aerospace industry which from time to time transact with the Society, the Trustees have no direct involvement with these transitions.

5. Analysis of expenditure

Expenditure: 2023 DirectCosts Support Total Grant Branch Total2023
Costs Funding of Activity
Activities
£ £ £ £ £
Raising Funds:
FundRaising 12,289 39,940 52,229 - - 52,229
Room Hire Services 168,547 337,646 506,193 - - 506,193
Admin services - 8,022 8,022 - - 8,022
Investmentmanagementcosts 12,717 3,513 16,230 13,286 : 29,516
193,553 389,121 582,674 13,286 - 595,960
Charitable Activities:
Careers&education 228,043 153,804 381,847 53,930 - 435,777
Conferences
EndPoint Assessment		 336,759
336,173		 215,983
206,315		 552,742
542,488		 -
-		 -
-		 552,742
542,488
NAL(Library) 309,665 89,948 399,613 - - 399,613
Membership services 810,651 514,486 1,325,137 - 73,878 1,399,015
Publications&information 623,733 159,880 783,613 - - 783,613
Policy&Research 141,707 90,455 232,162 - - 232,162
2,786,731 1,430,871 4,217,602 53,930 73,878 4,345,410
2,980,284 1,819,992 4,800,276 67,216 73,878 4,941,370

Within Careers & Education, a total of £13,560 was paid to individuals (2022: £7,500) covering 26 grants and prizes (2022: 22). Grants are paid when approved and accrued from the time of approval.

Page 33 of 50

ROYAL AERONAUTICAL SOCIETY FOR YEAR ENDED 31 DECEMBER 2023

5. Analysis of expenditure (continued)

Expenditure:2022 DirectCosts Support Total Grant Branch Total2022
Costs Funding of Activity
Activities
£ £ £ £ £
Raising Funds:
Fund Raising 13,416 37,380 50,796 - - 50,796
RoomHireServices 128,418 338,753 467,171 - - 467,171
Adminservices - 6,944 6,944 - - 6,944
Investmentmanagementcosts 13,395 3,508 16,903 13,995 - 30,898
155,229 386,585 541,814 13,995 - 555,809
Charitable Activities:
Careers& education 222,576 135,334 357,910 83,270 - 441,180
Conferences 413,605 233,319 646,924 - - 646,924
End PointAssessment 323,936 165,021 488,957 - - 488,957
NAL (Library) 224,082 75,329 299,411 - - 299,411
Membershipservices 695,577 491,675 1,187,252 - 61,845 1,249,097
Publications &information 567,754 159,755 727,509 - - 727,509
Policy&Research 170,811 71,582 242,393 - - 242,393
2,618,341 1,332,015 3,950,356 83,270 61,845 4,095,471
2,773,570 1,718,600 4,492,170 97,265 61,845 4,651,280

Page 34 of 50

ROYAL AERONAUTICAL SOCIETY FOR YEAR ENDED 31 DECEMBER 2023

6. Analysis of support costs

The Society initially identifies the costs of its main activities and then identifies those costs which relate to the governance function. Having identified its governance costs, the remaining support costs together with the governance costs are apportioned between the key activities undertaken by the Society in the year. Refer to the table below for the basis for apportionment and the analysis of support and governance costs.

SupportCosts: 2023 Managemen
t/StaffCosts		 Finance
Costs		 Governance
Costs		 Governance
Costs		 HR IT Support Premises
Costs		 Total 2023
Raising Funds: £ £ £ £ £ £
Fund Raising 6,101 22,131 1,305 - 5,795 4,608 39,940
Room Hire Services 30,103 7,114 1,305 10,083 11,591 277,450 337,646
Admin services 400 3,162 : 1,260 2,898 302 8,022
Investment management costs 200
36,804		 3,162
35,569		 -
2,610		 -
11,343		 -
20,284		 151
282,511		 3,513
389,121
Charitable Activities:
Careers & education 47,306 9,485 19,704 12,604 28,976 35,729 153,804
Conferences
EPA		 42,505
55,607		 56,909
47,424		 19,704
19,704		 12,604
12,605		 52,157
28,976		 32,104
41,999		 215,983
206,315
NAL (Library)
Membership services
Publications & information		 19,402
129,515
50,906		 22,131
104,334
15,808		 13,136
45,975
13,136		 6,302
44,116
12,605		 28,977
92,725
28,976		 -
97,821
38,449		 89,948
514,486
159,880
Policy&Research 31,604 8,694 7,887 12,605 5,795 23,870 90,455
376,845 264,785 139,246 113,441 266,582 269,972 1,430,871
413,649 300,354 141,856 124,784 286,866 552,483 1,819,992
SupportCosts: 2022 Managemen
t/StaffCosts		 Finance
Costs		 Governance
Costs		 HR {fT Support Premises
Costs		 Total 2022
Raising Funds: £ £ £ £ £ £
Fund Raising 5,320 22,112 1,332 - 3,995 4,621 37,380
Room Hire Services 17,360 7,108 1,332 2,725 7,990 302,238 338,753
Admin services 373 3,159 - 1,090 1,998 324 6,944
Investment management costs 187 3,159 - - - 162 3,508
23,240 35,538 2,664 3,815 13,983 307,345 386,585
Charitable Activities:
Careers &education
Conferences
EPA		 40,133
55,160
38,360		 9,477
56,860
47,383		 19,985
19,985
19,985		 10,902
17,443
5,996		 19,976
35,957
19,976		 34,861
47,914
33,321		 135,334
233,319
165,021
NAL (Library)
Membershipservices		 14,467
124,412		 22,112
104,243		 13,323
39,970		 5,451
49,059		 19,976
65,921		 -
108,070		 75,329
491,675
Publications & information 53,386 15,795 13,323 10,902 19,976 46,373 159,755
Policy&Research 27,533
353,451		 8,687
264,557		 3,997
130,568		 5,451
105,204		 1,998
183,780		 23,916
294,455		 71,582
1,332,015
376,691 300,095 133,232 109,019 197,763 601,800 1,718,600

Direct expenditure is allocated to categories of activity. Where expenditure cannot be directly allocated it represents support costs and is apportioned on a basis consistent with the use of resources, by reference to the number of staff working on each activity (IT and Premises) and staff time (Management, Finance, HR, and Governance).

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ROYAL AERONAUTICAL SOCIETY FOR YEAR ENDED 31 DECEMBER 2023

6. Analysis of support costs (continued)

Governance costs are included in support costs and reallocated across all activities; they include costs for a Governance Manager, expenses associated with Council meetings, Council elections, maintaining the Society's constitution, external audit, and core executive management, plus costs for travel for the President.

Governance Costs

Total 2023 =Total 2022
£ £
StaffCosts 70,520 59,781
StaffTraining/Travel/Recruitment 4,058 680
President, Council & Boffs Expenses 21,188 16,773
Audit Fees 21,100 20,000
Support Costs 27,989 35,998
141,855 133,232

The President, Council and Board of Trustees’ Expenses were related to travel & subsistence, training and other administrative costs.

7. Fixed Assets — Group and Charity

Property Freehold Fixtures Heritage Website Tota!
Land Property and AssetsAt Development
Equipment Valuation
£ £ £ £ £ £
CostorValuation
At1January2023
Additions		 5,527,222
-		 2,722,363
-		 665,967
123,415		 410,843
-		 79,109
35,024		 9,405,504
158,439
Disposals andotheradjustments - - (278,737) - - (278,737)
Balance31 December2023 5,527,222 2,722,363 510,645 410,843 114,133 9,285,206
Depreciation
At
January2023		 - 27,224 505,520 - 26,370 559,114
Charge forthe year
Removedondisposal
Balance31 December2023		 -
-
-		 27,224
=
54,448		 410,825
__(278,737)
337,608		 -
:
-		 38,044
=
64,414		 176,093
__(278,737)
456,470
Netbook value
At 31 December2023 5,527,222 2,667,915 173,037 410,843 49,719 8,828,736
At31December2022 5,527,222 2,695,139 160,447 410,843 52,739 8,846,390

Freehold premises are held at the historic valuation of the leasehold originally acquired by the Society plus the additional cost of the subsequent purchase of the freehold and less the depreciation on property (not land).

The Society's bankers, HSBC, have taken out a charge (not exceeding £4,255,000) on No.4 Hamilton Place to act as security against their loan.

The Trustees of the Society's Defined Benefit Pension Scheme (closed) have taken out a second charge on No.4 Hamilton Place to cover the Society's obligations in the event that the Society defaults on its payments to the scheme; in return the Society has received reduced contributions to the Scheme in future years.

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ROYAL AERONAUTICAL SOCIETY FOR YEAR ENDED 31 DECEMBER 2023

Of the above £8,417,893 (2022: 8,435,547) represents assets held for the Society's use. Functional Assets are also used by Aeronautical Trading Limited and this is reflected in their normal management charge.

The heritage assets of £410,843 (2022: £410,843) represent pictures, books and other items of Aeronautical interest held by the Society for which there are no readily identifiable market values. The Trustees have concluded a valuation 1997 which on transition to FRS 102 has been used as deemed cost. The impairment on heritage assets is considered annually.

8. Investments — Group and Charity

The Finance Committee (on behalf of the Board of Trustees) review the Society's investments with JM Finn & Co (investment advisors) on a quarterly basis; in 2023 there were minor changes to the asset allocation to reflect the ongoing changes within the markets.

2023 2022
£ £
Investments in Governmentand other listed
securities:
UK		 500,770 269,381
Overseas 102,744 75,425
Official Investments Funds atmarketvalues:
UK
Overseas
PropertyFunds
BankDeposits		 1,145,017
1,530,374
432,709
36,535		 1,067,596
1,293,881
780,729
105,551
3,748,149 3,592,563
Analysis ofmovements ofinvestmentassets: 2023
£		 2022
£
Investments at1January 3,592,564 4,296,997
Additions 1,215,935 723,771
Disposals (1,075,283) (585,238)
Revaluations 14,934 (842,966)
Investmentsat31December 3,748,149 3,592,563

Dividend income in the statement of financial activities arise from the above holdings which are all listed on the London Stock Exchange.

9. Debtors

Group Charity
2023 2022 2023 2022
£ £ £ £
Trade debtors 444,015 543,904 396,688 491,528
Otherdebtors 70,145 67,750 70,145 67,750
Prepayments 243,545 166,703 243,543 166,703
757,705 778,357 710,376 725,981

Page 37 of 50

ROYAL AERONAUTICAL SOCIETY FOR YEAR ENDED 31 DECEMBER 2023

10. Creditors falling due within one year

Group Charity
2023 2022 2023 2022
£ £ £ £
Trade creditors 363,794 294,438 357,674 294,318
Accruals and deferred income 1,283,389 952,517 1,258,969 904,417
Othertaxes and social security 62,802 87,640 62,801 87,640
LoanforProperty 32,450 31,547 32,450 31,547
Other creditors 115,194 133,707 97,987 116,572
Amountduetosubsidiary
undertaking		 . . 49.359
/		 54.642
,
1,857,630 1,499,849 1,859,240 1,489,136

Deferred income represents income from Subscription for Membership, Publications, Venue Hire, Conference, Sponsorship for future periods. This includes sponsorship from Marshall.

Group Charity
Reconcilationofdeferredincome 2023 2022 2023 2022
£ £
Balance as at1January 732,199 1,011,446 684,099 976,316
Income deferred inthe currentyear 1,008,862 646,073 994,702 603,123
Releasefrom prioryear (637,099) (925,320) (601,759) (895,340)
Balanceasat31December 1,103,962 732,199 1,077,042 684,099

11. Creditors falling due after one year

Group Charity
2023 2022 2023 2022
£ £ £ £ £ £
Loan forProperty:
Within 2to 5years 149,923 149,923
After5years 538,040 687,963 720,485 538,040 687,963 720,485
Sponsorship: Marshalls 59,426 61,712 59,426 61,712
147,389 782,197 147,389 782,197

In March 2009 the Society purchased the freehold of No 4 Hamilton Place (Society's HQ) at a cost of £4,859,755; the Society repaid its variable mortgage in 2022. At the end of 2023, the outstanding loan on property was £720,413 (2022: £752,032).

Page 38 of 50

ROYAL AERONAUTICAL SOCIETY FOR YEAR ENDED 31 DECEMBER 2023

12. Operating lease

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |The|RAeS|is|committed|on|operating|leases|as|follows:| |2023|2022| |£|£| |Within|1|year|1,196|1,196| |Within|2 to|5 years|897|2,093| |2,093|3,289|

----- End of picture text -----

In 2023, the operating leases cost was £1,196 (2022: £1,196).

13 . Endowment funds

The following reserves are held in accordance with the reserves policy set out on page 11 of this report.

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |Funds: 2023|Fund|Income|Expenditure|Transfers|Gains/|Fund| |Balances|(losses)|Balances| |Brought|Carried| |Forward|Forward| |01/01/2023|31/12/2023| |£|£|£|£|£|£| |CAARC Fund|16,209|-|-|792|84|17,085| |Alan Snudden|77,933|-|-|-|376|78,309| |Awards|Trust|4,216,710|-|-|38,702|5,401|1,260,813| |Total Expendable Endowment Funds|1,310,852|-|-|39,494|5,861|1,356,207| |eS| |Funds: 2022|Fund|Income’|Expenditure|Transfers|Gains/|Fund| |Balances|(losses)|Balances| |Brought|Carried| |Forward|Forward| |01/01/2022|31/12/2022| |£|£|£|£|£|£| |CAARC Fund|20,175|-|-|780|(4,746)|16,209| |Alan Snudden|99,122|-|-|-|(21,189)|77,933| |Awards|Trust|1,493,375|-|-|28,246|(304,911)|1,216,710| |Total Expendable Endowment Funds|1,612,672|-|-|29,026|(330,846)|1,310,852|

----- End of picture text -----

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ROYAL AERONAUTICAL SOCIETY FOR YEAR ENDED 31 DECEMBER 2023

14. Restricted income funds

The following reserves are held in accordance with the reserves policy set out on pages 9 and 10 of this report.

Funds: 2023 Fund Income Expenditure Transfers Gains/ Fund
Balances (losses) Balances
Brought Carried
Forward Forward
01/01/2023 31/12/2023
£ £ £ £ £ £
CAARC Fund - 938 (146) (792) : -
Alan Snudden 32,938 5,396 (842) - 108 37,600
Awards Trust - 60,281 (18,579) (41,702) - -
Future ScholarshipFund (Formerly Centennial 243,651 11,460 (9,398) 3,000 1,027 249,740
Scholarship)
National Aerospace LibraryFund 146,459 7,078 (1,104) - 634 153,067
RAeS ChairofAirPowerStudies 14,542 - - - - 14,542
Falcon 2(FormerlySchool BuildaPlane
Challenge)		 23,446 7 288 . . 23,734
ALTA 2,243 2,642 (33) - - 4,852
Boeing - Project Altitude 77 537 38,177 (12,442) - - 103,272
Flying Start Challenge 5,190 7,750 (7,299) - - 5,641
Michael Bishop Foundation 16,453 - - - - 16,453
Kremer Fund 161,541 650 (2,000) - 160,191
Worldskills 1,255 3,520 - - - 4,175
AAU Outreach 23,429 - - - - 23,429
CAASky Challenge - 41,250 (15,661) - - 25,589
Total Funds 148,684 179,142 (67,216) (39,494) 1,769 822,885
Funds: 2022 Fund Income Expenditure Transfers Gains/ Fund
Balances (losses) Balances
Brought Carried
Forward Forward
01/01/2022 31/12/2022
£ £ £ £ £ £
CAARCFund - 934 (154) (780) - :
Alan Snudden 34,560 5,374 (887) - (6,109) 32,938
Awards Trust - 60,017 (28,771) (31,246) - -
Centennial Scholarship Fund 285,592 11,409 1,616 3,000 (57,966) 243,651
National Aerospace LibraryFund 176,376 7,047 (1,164) - (35,800) 146,459
RAeS Chair ofAirPowerStudies 14,542 - - - - 14,542
School Build a Plane Challenge 23,994 - (548) - - 23,446
ALTA 2,939 1,149 (1,845) - - 2,243
Boeing - Project Altitude 17,965 44,098 (44,526) - - 17,537
Flying Start Challenge 12,398 1,200 (8,408) - - 5,190
Michael Bishop Foundation 16,453 - - - - 16,453
Kremer Fund 161,130 411 - - - 161,541
Worldskills - 10,640 (12,578) 3,193 - 1,255
AAU Outreach : 23,429 - - - 23,429
TotalFunds 805,949 165,708 (97,265) (25,833) (99,875) 748,684

Alan Snudden Fund — The Trustees had the power to accumulate surpluses for 21 years from the founding deed which was dated 1992; transfers to net income made from 2013-16 have been transferred back to Restricted to cover future commitments.

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ROYAL AERONAUTICAL SOCIETY FOR YEAR ENDED 31 DECEMBER 2023

15. Unrestricted reserve funds

The following reserves are held in accordance with the reserves policy set out on pages 8 and 9 of this report.

----- Start of picture text -----
||||||||||| |---|---|---|---|---|---|---|---|---|---| |Funds|: 2023|Fund|Income|Expenditure|Transfers|Gains/|Fund| |Balances|(losses)|Balances| |Brought|Carried| |Forward|Forward| |01/01/2023|31/12/2023| |£|£|£|£|£|£| |General|Reserve|- Functional|Assets|8,435,547|-|(17,654)|-|-|8,417,893| |General|Reserve|- Functional Assets|Loan|(752,032)|-|-|31,618|-|(720,414)| |General|Reserve|- Free Reserve|2,402,289|5,685,187|(4,782,230)|(139,018)|7,304|3,173,532| |Heritage Assets|410,843|-|-|-|-|410,843| |Flight Sims|Sponsorship Fund|51,336|-|-|-|-|51,336| |Mortgage & Premises|Reserve|6,836|-|-|-|-|6,836| |No.4 HP Refurbishment|Project|400,000|-|-|-|-|100,000| |Designated|IT Project Fund|81,629|-|-|-|-|81,629| |RAeS Foundation|261,279|54|(6,392)|-|-|254,941| |a| |10,997,727|5,685,241|(4,806,276)|(107,400)|7,304|11,776,596| |Pension Fund|- FRS17 Reserve|-|-|6,000|76,000|(82,000)|-| |a| |Total Funds|10,997,727|5,685,241|(4,800,276)|(31,400)|(74,696)|11,776,596| |Eee|eee|

----- End of picture text -----

The Free reserve represents the surplus on funds available for future general activities after allowances for the reserves specified in the policy. In 2023, branches received £31,400 subvention transfers from the Society’s free reserves.

----- Start of picture text -----
||||||||||| |---|---|---|---|---|---|---|---|---|---| |Funds|: 2022|Fund|{income|Expenditure|Transfers|Gains!|Fund| |Balances|(losses)|Balances| |Brought|Carried| |Forward|Forward| |01/01/2022|31/12/2022| |£|£|£|£|£|£| |General|Reserve|- Functional Assets|8,455,911|-|(20,364)|-|-|8,435,547| |General|Reserve|- Functional Assets|Loan|(1,542,079)|-|-|790,047|-|(752,032)| |General|Reserve|- Free|Reserve|2,521,047|5,329,793|(4,447,023)|(589,283)|(412,245)|2,402,289| |Heritage Assets|410,843|-|-|-|-|410,843| |Flight Sims|Sponsorship Fund|51,336|-|-|-|-|51,336| |Mortgage & Premises|Reserve|106,836|-|(100,000)|-|6,836| |No.4 HP Refurbishment Project|100,000|-|-|-|-|100,000| |Designated|{T Project Fund|81,629|-|-|-|-|81,629| |RAeS Foundation|222,301|260,761|(8,783)|(213,000)|-|261,279| |a| |10,407,824|5,590,554|(4,476,170)|(112,236)|(412,245)|10,997,727| |Pension|Fund|- FRS17|Reserve|(858,333)|-|(16,000)|76,000|798,333|-| |_eee| |Total Funds|9,549,491|5,590,554|(4,492,170)|(36,236)|386,088|10,997,727|

----- End of picture text -----

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ROYAL AERONAUTICAL SOCIETY FOR YEAR ENDED 31 DECEMBER 2023

16.
Designated Branches funds		 16.
Designated Branches funds
Funds: 2023 Fund Income Expenditure Transfers Gains/ Fund
Balances (losses) Balances
Brought Carried
Forward Forward
01/01/2023 31/12/2023
£ £ £ £ £ £
Branches 359,706 79,993 (73,878) 31,400 - 397,221
Total Funds 359,706 79,993 (73,878) 31,400 - 397,221
Funds: 2022 Fund Income Expenditure Transfers Gains/ Fund
Balances (losses) Balances
Brought Carried
Forward Forward
01/01/2022
£		 £ £ £ £ 31/42/2022
£
Branches 359,451 29,057 (61,845) 33,043 - 359,706
TotalFunds 359,451 29,057 (61,845) 33,043 - 359,706

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ROYAL AERONAUTICAL SOCIETY FOR YEAR ENDED 31 DECEMBER 2023

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |17.|Analysis|of funds| |.|.|Desigated| |Funds: 2023|Unrestricted|Restricted|Endowed|Branches|Tota!| |Funds|Funds|Funds|Funds| |£|£|£|£|£| |Fund|balances|at 31|December 2023 are| |represented|by:| |Fixed|assets|8,828,736|-|-|-|8,828,736| |Investments|1,832,997|444,086|1,471,066|-|3,748,149| |Current assets|3,719,882|378,799|(114,859)|397,221|4,381,043| |Current|Liabilities|(1,857,630)|-|-|-|(1,857,630)| |Total Funds Excluding|Pension|Liability and|12,523,985|822,885|1,356,207|397,221|15,100,298| |Non-Current|liabilities| |Long Term|Liabilities|(747,389)|-|-|-|(747,389)| |Defined|Benefit Pension|Scheme|Liability|-|-|:|-|-| |Total Funds|11,776,596|822,885|1,356,207|397,221|14,352,909| |-|.|Desigated| |.| |Funds:|Unrestricted|Restricted|Endowed| |2022|Funds|Funds|Funds|Branches|Total| |Funds| |£|£|£|£|£| |Fund|balances|at 31|December 2022 are| |represented|by:| |Fixed|assets|8,846,390|-|-|-|8,846,390| |Investments|1,756,909|425,652|1,410,002|-|3,592,563| |Current assets|2,676,474|323,032|(99,150)|359,706|3,260,062| |Current Liabilities|(1,499,849)|-|-|-|(1,499,849)| |Total Funds Excluding Pension|Liability|11,779,924|748,684|1,310,852|359,706|14,199,166| |Long Term|Liabilities|(782,197)|-|-|-|(782,197)| |Defined|Benefit Pension Scheme|Liability|-|-|-|-|-| |Total Funds|10,997,727|748,684|1,310,852|359,706|13,416,969|

----- End of picture text -----

Page 43 of 50

ROYAL AERONAUTICAL SOCIETY FOR YEAR ENDED 31 DECEMBER 2023

18. Subsidiary charities and companies

Accounts for the Society only have been presented as the amounts relating to subsidiary entities are clearly distinguished throughout, being those amounts shown as “Endowments - subsidiary charities” or “Aeronautical Trading Ltd”. No separate income and expenditure account are presented as the movements in endowment funds are not material.

The subsidiary charities are:

Registration Number

Registered in

The Royal Aeronautical Society Awards Trust 1045004 England and Wales Alan Snudden Memorial Trust Fund 1013530 England and Wales

The CAARC fund, which is shown as a distinct fund from the other funds of The Royal Aeronautical Society Awards Trust in these accounts is a specified fund administered within that charity.

The subsidiary companies are:

Percentage of Net Assets Percentage of Net Assets Registered in
shares held £
Aeronautical Trusts Limited 100% 1 England and Wales
Aeronautical TradingLimited 100% 2 EnglandandWales

Aeronautical Trusts Limited is the corporate trustee of the subsidiary charities set out above.

Aeronautical Trading Limited (registered number 03243525) is the only trading company and its results, assets and liabilities are included in the consolidated accounts. Its results and financial position are summarised below:

Aeronautical Trading Ltd - Profitand Loss Account 2023 2022
£ £
Turnover 594,559 538,872
Costof sales (168,547) (128,418)
Gross Profit 426,012 410,454
Administrative expenses (337,646) (338,753)
Operating profit 88,366 71,701
Aeronautical Trading Ltd -Balance Sheet
2023 2022
£ £
Debtors 96,686 107,018
Cash atBank 39,430 30,041
Creditors: amounts falling due within 1 year
Due to parentundertaking - -
Othercreditors (47,748) (65,356)
NetAssets 88,368 71,703
Represented By:
TotalEquity 88,368 71,703

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ROYAL AERONAUTICAL SOCIETY FOR YEAR ENDED 31 DECEMBER 2023

19. Consolidated Statement of Activities 2022

The following Consolidated Statement of Financial Activities for the year ended 31 December 2022:

Unrestricted Restricted Endowments Designated Total 2022
Funds Funds (Subsidiary (Branches)
Charities) Funds
Funds
£ £ £ £ £
Income and endowments from:
Donations & Legacies 271,536 84,442 - 29,057 385,035
Charitable Activities 4,459,078 - - - 4,459,078
OtherTrading Activities 772,812 - - - 772,812
Investments 87,128 81,266 - - 168,394
Total 5,590,554 165,708 - 29,057 5,785,319
Expenditure on:
Raising Funds 541,814 13,995 - - 555,809
Charitable Activities 3,950,356 83,270 - 61,845 4,095,471
Total 4,492,170 97,265 - 61,845 4,651,280
Net income/(expenditure)
before lossesoninvestments		 1,098,384 68,443 . (32.788) 1,134,039
Net losses on investments (412,245) (99,875) (330,846) - (842,966)
Netincome/expenditure 686,139 (31,432) (330,846) (32,788) 291,073
Transfers between funds (36,236) (25,833) 29,026 33,043 -
649,903 (57,265) (301,820) 255 291,073
Other recognised (losses)/gains:
Net actuarial (losses) on Pension
Scheme
Netmovement in funds		 798,333
1,448,236		 .
(57,265)		 .
_
(301,820)		 .
798,333
a
255
1,089,406
Balance at 1 January 9,549,491 805,949 1,612,672 359,451 12,327,563
Fundsat31December 10,997,727 748,684 1,310,852 359,706 13,416,969

20. Defined Benefit Pension Scheme (now frozen)

The valuation used for FRS102 disclosures has been based on the most recent actuarial valuation as at 1 April 2023 and updated by the Actuary to take account of the requirements of FRS102 in order to assess the liabilities of the scheme at 31 December 2023. Scheme assets are stated at their market value at 31 December 2023.

The most recent valuation on a discontinued basis was at 1 April 2022 which showed that the scheme’s assets fully covered its priority liabilities and 77% of the remaining liabilities on that date; the actuarial valuation shows a deficit of £982k (2019: £1,294k).

The following notes comprise the full disclosures as set out in FRS102.

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ROYAL AERONAUTICAL SOCIETY FOR YEAR ENDED 31 DECEMBER 2023 20. Defined Benefit Pension Scheme (now frozen) (continued)

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Economic assumptions
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Proposed assumption at Assumption Adopted at
31 December 2023 31 December 2022
Discount rate 4.50% p.a. 4.90% p.a.
Future increase in Retail Prices Index (RPI") 3.05% p.a. 3.15% p.a.
Future increase in Consumer Prices Index 2.20% p.a. 2.20% p.a.
(CPI)
Deferred revaluation rate
CPI subjectto a maximum of 5.00% p.a. 2.20%p.a. 2.20%p.a.
Pension increase
- Pre Aprit 1997 in excess of GMP 4.00% p.a. 4.00% p.a.
- April 1997 - April 2005 2.85% p.a. 2.85% p.a.
assumptions
Proposed assumption at 31 Assumption adpoted at
December 2023 31 December 2022
Pre-retirement mortality 98% of SAPS3 tables, based 98% of SAPS3 tables, based
on members’ years of birth on members’ years of birth
with CMI 2022 core projections with CMI 2021 core projections
with a longterm trend of 1.25% with a longterm trend of 1.25%
p.a p.a
Post-retirement mortality 98% of SAPS3 tables, based 98% of SAPS3 tables, based
on members’ years of birth on members’ year of birth
Future improvements in longevity CMI 2022 projections with a CMI 2021 projections with a
long term trend of 1.25% p.a. long term trend of 1.25% p.a.
Life expectancy
Male currently aged 60 26.1 26.7
Female currently aged 60 28.9 29.3
Male currently aged 40 27.6 28.2
Female currently aged 40 30.3 30.8
Commutation 50% of members assumedto 50% of members assumedto
commute some of their commute some of their
pension, using current pension, using current
commutation factors, to receive commutation factors, to receive
100% of maximum tax-free 100% of maximum tax-free
cash lump sum. cash lump sum.
Retirement age 1st April nearest to 60th 1st April nearest to 60th
birthday. birthday.
Marital statistics 80% of males and 70% of 80% of males and 70% of
femates. females assumed to be
married at retirement or earlier
death.
Age difference Males assumed to be 3 years Males assumed to be 3 years
older than females older than females
Options (e.g. transfers out) No allowance No allowance
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Demographic assumptions
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ROYAL AERONAUTICAL SOCIETY FOR YEAR ENDED 31 DECEMBER 2023

20. Defined Benefit Pension Scheme (now frozen) (continued)

A) Assets and DBO

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|||||||| |---|---|---|---|---|---|---| |31|December 2023|31|December 2022| |£'000|£°000| |Total|Value|of total|Scheme|assets|2,224|2,443| |re|onere|of assets|in respect of insured|682|729| |Present|value|of DBO|(2,906)|(3,172)| |Funded|surplus|/|(deficit)|-|-| |Reconciliation|of the value the value value|of the the|DBO| |31|December|2023|31|December 2022| |£'000|£'000| |Opening DBO|3,172|5,242| |Service|cost|-|-| |Past|service|cost|-|-| |Members|contributions|-|-| |Interest on|liabilities|153|95| |Actuarial|losses|/|(gains)| |From change|on|assumptions|128|(2,341)| |From|experience|46|358| |Curtailments|loss|/ (gain)|-|-| |Settlements|(483)|-| |Benefits|paid|out|(110)|(182)| |Expenses|-|-| |Closing|defined|benefit obligation|2,906|3,172|

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B) Reconciliation of the value the value value of the the DBO

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ROYAL AERONAUTICAL SOCIETY FOR YEAR ENDED 31 DECEMBER 2023

20. Defined Benefit Pension Scheme (now frozen) (continued)

C) Reconciliation of the value of the assets

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||||||||| |---|---|---|---|---|---|---|---| |314|December|2023|31|December|2022| |£'000|£°000| |Opening value|assets|3,821|4,384| |Interest|income|on|Scheme|Assets|187|79| |Actuarial|gains|/ (losses)|20|(536)| |Society|contributions|76|76| |Member|contributions|-|-| |(Loss)/gain|on|Settlements|(511)|-| |Benefits|paid|(110)|(182)| |Derecognition|of surplus|(577)|(649)| |Closing value of assets|3.906 3472| |Return|on|the|Scheme|Assets| |31|December|2023|31|December|2022| |£°000|£'000| |Actual|return|on|assets|207|(457)| |Analysis|of the the|amount|charged|to|Profit|and|Loss| |31|December|2023|31|December|2022| |£°000|£'000| |Service|cost|-|-| |Past|service|cost|-|-| |Losses/|(gains)|on|settlement|and|curtailments|-|-| |Administrative|costs|-|-| |Net|interest|cost|(6)|16| |Total|a|>)ag| |Analysis|of net net|interest|cost| |34|December 2023|31|December 2022| |£'000|£°000| |Interest|income|on|Scheme|assets|(187)|(79)| |Interest|in|Scheme|liabilities|153|95| |Interest|expense|on|itrecoverable|surplus|-|-| |Net|interest (credit}|/ cost|(34)|16|

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D) Return on the Scheme Assets

E.1) Analysis of the the amount charged to Profit and Loss

E.2) Analysis of net net interest cost

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ROYAL AERONAUTICAL SOCIETY FOR YEAR ENDED 31 DECEMBER 2023

20. Defined Benefit Pension Scheme (now frozen) (continued)

F) Amount recognised in Other Comprehensive Income

F) AmountAmount recognised in Other ComprehensiveComprehensive Income
34 December 2023 31 December 2022
£'000 £'000
Return on Scheme assets less interest income 92 (1,185)
Actuarial gains/(losses fromachange in assumptions (128) 2,341
Actuarial gains/(losses) from experience (46) (358)
ExpenserecognisedinActuarialLosses (82) 198

G) Society Contributions

Under the current Schedule of Contributions, the Society contributes the following:

Deficit contributions of £76k per annum from 1 April 2019 to 31 March 2034; and

all Scheme expenses (including PPF levies).

H) Amounts for the current and previous two periods

31 December2023 34 December 2022 31 December2021
£000 £'000 £'000
Present value offunded DBO (2,906) (3,172) (5,242)
SchemeAssets 2,224 2,443 3,410
Value ofassets in respect ofinsured pensions 682 729 974
Surplus/(deficit) - - (858)
Experience gain/(loss) onDBO (46) (358) 34
Experiencegain/(loss)onassets 20 (536) 200

The recent FRS 102 valuation shows a pension scheme asset. Under the Governing documents the charity is entitled to a refund when the last payment is made. As the scheme is a closed scheme for future accruals, the trustees feel that the recoverability of the asset is too remote and has not recognise the Pension Scheme asset in these accounts as a result

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ROYAL AERONAUTICAL SOCIETY FOR YEAR ENDED 31 DECEMBER 2023

20. Defined Benefit Pension Scheme (now frozen) (continued)

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|||||||| |---|---|---|---|---|---|---| ||)|Sensitivity|of movement|in|key|assumptions|£'000| |Discount|rate|+|0.50%|(199)| |Inflation|(RPI|and|CPI)|+|0.50%|55| |Life|Expectancy|+|tyear|100| |J)|Forecast|Profit &|Loss for the|next|account|period|

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|||||||| |---|---|---|---|---|---|---| |31|December|2024| |£°000| |Semnice|cost|-| |Losses|/(gains)|on|settlements|and|curtailments|-| |Interest|income|(154)| |Administrative|costs|-| |Net|interest|cost/(credit)|128| |Total|(26)|

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