rya annual report 2014

ANNUAL REPORT AND ACCOUNTS 2014

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ANNUALREPORT& ACCOUNTS

FOR THE YEAR ENDING 31ST MARCH 2014


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For the year ending 31st March 2014

AGM Agenda 03

Chairman’s Statement 04

Chief Executive’s Strategic Report 05

Directors’ Report 11

Independent Auditors’ Report 12

Income and Expenditure Account 13

Statement of Total Recognised Gains and Losses 13

Balance Sheet 14

Cash Flow Statement 15

Notes to the Accounts 16

The RYA PurposeTo promote and protect safe, successful and rewarding British boating

ANNUAL REPORTAND ACCOUNTS2014


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ROYAL YACHTING ASSOCIATION FOUNDED 1875

PATRON HER MAJESTY THE QUEEN

PRESIDENT HRH THE PRINCESS ROYAL, KG, KT, GCVO, QSO

NOTICE OF AGMNOTICE IS HEREBY GIVEN THAT: THE ANNUAL GENERAL MEETING OF THE ROYAL YACHTING ASSOCIATION WILL BE HELD ON FRIDAY 21st NOVEMBER 2014 AT 11:00 AT ONE GREAT GEORGE STREET, WESTMINSTER, LONDON SW1P 3AA

1. To approve the Minutes of the Annual General Meeting of 21st November 2013 (circulated with the Spring 2014 RYA Magazine).

2. To receive the Report of the Board of Directors and Accounts for the year ended 31st March 2014 (together with the report of the Auditors).

3. To elect the President for the ensuing year: HRH The Princess Royal, the retiring President, is eligible for re-election and has signified her willingness to continue to serve in office.

4. To appoint the Auditors and to delegate to the Board of Directors authority to fix the remuneration of the Auditors.

5. To announce the names of members elected to the Board: The names of the two successful candidates elected by RYA Council members will be announced at the meeting.

6. To announce the names of members elected to the RYA Council: The names of the successful candidates elected by the personal and life members will be announced at the meeting.

7. The meeting to note that there will be a ceremony later in the day to present the following awards:

RYA Awards for distinguished services to boating: Josie Gentry Howard Nelson Robert Russell OBE Tony Saltonstall David Williams

RYA Community Awards in the following categories:

Lifetime Commitment John Allsopp Peter & Jill Betts (J) Gary Butler & Ian Shirra (J) Steve Caladine Joe Coady Alasdair Finlay Julie Gibbon David Greenall Liz Hall Richard Hopper Graham Howlett Christine Hughes

Tony Lock Quentin Mitchell Brian Pettitt Ian Pilkington Alan Salerman Mike Shipway Paul Stainsby David Waterhouse Elaine Westwood Roy Winnett

Outstanding Contribution Roger Bennett Andrew Craig Stewart Elder Neil Garrison David Harris Ros Lamb Edward Leask OBE John Marshall Iain McDowall Suki Pountney Michael Wade Richard Woodhurst

Youth Richard Beasley Peter Mackin Callum Mitchell

RYA Family Award for collective services to boating: Geoff and Celia Gambrill and their daughter, Jo Norrington

RYA Sailability Francis Elkin Award for services to sailing for the disabled: Judi Figgures MBE

8. Any other business Note to Item 8

Any matters raised under Agenda item 8 cannot form part of the official business of the meeting and thus may not be proposed as formal motions. This item is included purely to afford members an opportunity for informal discussion.

NOTE TO ALL PERSONAL AND LIFE MEMBERS ATTENDING THE AGM

Please bring your voting paper (included in Summary Financial Statement) to the AGM. If you appoint a proxy to attend in your place they must bring the voting paper.

AGM AGENDA

(J) = Joint Award


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CHAIRMAN’S STATEMENT

I’m delighted to report that the Association has had another very busy and successful year, with each of our core activities – membership, participation, training and performance – helping people across Britain have a safe, successful and rewarding time out on the water. This has been achieved whilst continuing to deliver the strong financial performance necessary to enable us to invest for the future.

In her report, Sarah will cover in more detail the many highlights of the year which once again have been achieved through the combined efforts of RYA members, national and local volunteers, marine organisation partners, funding bodies and sponsors. Together, we continue to make boating, both by sail and power, one of the most enjoyable activities available.

Our participation mission is to enable everyone, whatever their circumstances, to have the opportunity to experience the benefits of being on the water. This presents many challenges, but the growth of Sailability Groups is a great example of how, by working together, we can make it easier for people to get afloat. In the past year the RYA’s charity, now re-launched as the RYA Foundation, has broadened its aims to enable it to help additional disadvantaged groups. In conjunction with other charitable organisations it aims to create opportunities for even more people who wouldn’t otherwise consider boating. I hope many of you will be able to support the Foundation over the coming years.

Elite racing may only involve a minority of members but it is one of the high profile activities of the Association and plays an important role in inspiring future participants in all parts of our sport. Halfway through the four year Olympic cycle we continue to be regarded as one of the top competitive nations in Olympic and Paralympic sailing, with encouraging signs in the new classes as well as those with established strength. The outlook beyond 2016 is positive, with many talented sailors rising through the Youth and Junior programmes. Meanwhile powerboat racing celebrated four World and three European champions in the year.

Safe behaviour and practice ultimately protects life and equipment. Thankfully serious accidents are rare, but we want to reduce their incidence even further. In conjunction with the Royal National Lifeboat Institute (RNLI), Maritime and Coastguard Agency (MCA), Marine Accident Investigation Branch (MAIB) and others we play a

vital role in communicating safety messages through the new Safety Advisory Notices and the RYA website. The most important piece of safety equipment on any vessel is the human brain, and our aim is to inform and challenge people to think through their own circumstances rather than prescribe specific courses of action.

RYA Training was further enhanced by the growth in our e-learning and e-publications offer; enabling students to learn at a time, pace and location to suit their needs. The new platforms are designed to complement, rather than replace, the traditional RYA reliance on practical hands-on training. This evolution is a sign of the Association’s drive to remain relevant and current, whilst retaining the strictest quality standards.

We continue to improve the value that each of our 102,000 members, no matter what their boating activity or reason for joining, derives from their membership. The Association works to represent recreational boating interests and maintain navigational rights and freedoms for cruisers and racers alike, in both sail and power. Since the 2011 Governance Review, Council has retained responsibility for creating and approving boating related policy, whilst the Board holds accountability for its planning and implementation. For this to work effectively, it is essential that the Council is fully representative of the diverse boating interests and demographic groups within the RYA membership. Initiatives to ensure the composition and remit of the Council remain fully effective have already been introduced, and will be consolidated over the coming 12 months.

Thank you to everyone who has welcomed me in England, Scotland, Wales and Northern Ireland over the past year and I look forward to meeting more of you in the future.

Stacey Clark Chairman


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CHIEF EXECUTIVE’S STRATEGIC REPORT

£19.3mTOTAL INCOME

£7.4m MEMBERS’ FUNDS

102,144 PERSONAL MEMBERS

216,888 TRAINING CERTIFICATES

72,708 ONBOARD SESSIONS

BUSINESS REVIEW The Association remains in strong financial health, able both to support core activity and to invest in new opportunities. As anticipated, income fell to £19.3m in line with the profile of our 2013-17 grant agreements and due to non-repeated income from 2012. Direct expenditure reduced accordingly, while overheads were held flat, resulting in an operating surplus of £331,174.

However, a significant one-off change in the valuation of Portland House created a £574,400 impairment charge, based on a prudent appraisal of the value of the property in current market conditions. This resulted in a reported pre-tax deficit of £124,402. Conversely, £87,781 was credited to establishment expenses as a result of an interim upward revaluation of our long leasehold premises in Hamble.

We continue to be exposed to fluctuations in the actuarial valuation of our Final Salary Pension Scheme. The valuation under FRS 17 fell into deficit in 2012 and the deficit increased significantly in 2013. Largely as the result of further changes in actuarial assumptions in the current year, the deficit reduced from £453,000 to £16,000 as at 31st March 2014. The 2014 Triennial Review will be completed over the next 12 months, during which we will be working closely with the Trustees to agree a recovery plan to address the predicted deficit caused by changes in market conditions.

Despite these adjustments, the accumulated fund on the balance sheet has risen to £7.4m, net current assets have grown by over half a million pounds and the outstanding loan on Portland House has been repaid in full.

PRINCIPAL RISKS AND UNCERTAINTIESThe activities and goals within the strategic plan are reflected in specific key performance indicators and targets within the annual operating plan. This is regularly monitored by Management, Board and Council alongside the Risk Register. Major risks facing the Association are considered to be:

• Anything damaging our reputation as an effective, responsible, well-managed body, whether in the eyes of RYA members or funding partners;

• Any failure in our commercial income-generating activities, leading to a lack of sufficient funds to underpin the RYA’s general activities;

• Any significant reduction in grants or other funding, requiring cuts to the associated key programmes.


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MEMBERSHIP MATTERSWe are delighted to report stable membership of over 102,000 – at a time when many membership organisations are in decline. The biggest growth areas of membership were dinghy racing, dinghy cruising and sports boats and RIBS.

The Membership Department has continued to liaise with selected brands to expand upon the member benefits and rewards. New partners include Virgin Flightstore, Sebago, SLAM and the Intercontinental Hotels Group. Following feedback from members we will continue to expand the range of clothing and boating benefits.

The improved visual presence of the RYA Magazine has been well-received. Members were informed of the latest news and offers via nearly four million e-newsletters. We have an expanding range of monthly e-zines for different boating groups that ensure members receive news of the RYA activity which specifically interests them. Our website attracted an average of 160,500 monthly visitors; an increase on last year’s figures, with some nine million page views recorded – 49 per cent from new visitors. We continue to provide information and advice through social media channels; our YouTube channel has proved especially popular with over 600,000 views.

We have developed a series of fun and educational resources for youth and junior members, which are presented via bespoke web pages and newsletters. Our junior member mascot, ‘Bob the Buoy’, was introduced at the Southampton Boat Show and is proving to be very popular with children.

Several exclusive Gold Member events were held, including those at the Kip Boat Show, the All Wales Boat Show and the RYA Suzuki Dinghy Show. The Gold Instructor members’ pin badges have been popular and around 2,500 have been issued since September. A review of our strategy and presence at national boat shows led to a revised presence at the London Boat Show and following positive feedback this will be extended to this years’ PSP Southampton Boat Show. The RYA stand

has been made more inviting, interactive and member-friendly, and a change of location should provide a greater footfall and enable better interaction with our members and industry partners. The RYA Lounge will relocate to the Holiday Inn to improve the service to members.

A change to instructor membership was introduced, making it mandatory for newly qualified RYA Instructors to become RYA members in order to gain their certificates. Revalidating instructors are also now required to be RYA members. We feel this will encourage commitment and interaction between instructors and the RYA.

We have redesigned the Joining Point member promotion packs and launched these at clubs and training centres during the Push the Boat Out weekend in May. Meanwhile, the RYA value proposition was defined and included in membership collateral to clarify and reinforce the ‘why join?’ decision.

REPRESENTATION OF MEMBERS’ INTERESTS Boating in the UK has a long established tradition of self-reliance and individual responsibility. As a consequence we enjoy relative freedom, but this cannot be taken for granted, particularly when our coastal waters and inland waterways are under increasing pressure from competing commercial and environmental interests. Our legal team handled over 6,000 enquiries during the year - offering extensive cruising, environmental and legal advice with a commercial value of over £480,000 to clubs and personal members. Our lobbying activity was enhanced by closer engagement with key government and marine industry stakeholders on issues including wind farms, marine conservation zones (MCZs) and red diesel.

Following two years of work with the Marine Management Organisation (MMO), we secured exemptions and reduced fees for marine licenses for clubs as well as a greater understanding by the MMO of the activities typically undertaken by clubs. Meanwhile, developers for several round-three offshore wind farms submitted applications to the Planning Inspectorate, including Navitus Bay off


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the Dorset coast and the Burbo Bank extension in Liverpool Bay. Following positive work with developers the RYA is now making representations through the Planning Inspectorate’s examination process. Specific concerns differ with each wind farm but include: obstructions and changes in water depth caused by export cables, risks to navigation and the impact of arrays on situational awareness or search and rescue capability.

The Chief Inspector of Borders and Immigration explicitly acknowledged the RYA’s legal and practical concerns in relation to the maritime leisure sector in his report on the Home Office’s e-Borders programme. We maintain our view that the e-Borders reporting methodology is not designed to accommodate the unscheduled activities of the recreational boating sector, and continue to lobby to this effect on members’ behalf.

The Green Blue, our joint environmental project with the BMF, promotes sustainable behaviour afloat and ashore. Last year’s ‘Love Where You Sail’ campaign encouraged people to give more consideration to what they were allowing to go overboard and to find alternative disposal methods.

PARTICIPATION The season kicked off with the RYA Suzuki Dinghy Show. Attendance rose by seven per cent to over 10,000 and extremely positive feedback was received from both visitors and exhibitors. The show remains a key part of the RYA’s support for dinghy sailing members, clubs and classes.

Currently 239 clubs and centres are signed up to the OnBoard programme working with schools and youth groups to give children a positive introduction to sailing. As we enter the ninth year of the programme, our target of half a million first experiences was achieved by mid-2014 and the regular participants target of 50,000 will be reached by March 2015. One of the highlights of the programme, has been seeing young people who have been introduced to the sport

through OnBoard going on to qualify as instructors. Some are now also competing nationally and moving on to the RYA’s World Class Performance pathway. OnBoard clubs have also seen an increase in adult participation as parents and families sign up for taster sessions.

Whilst still a relatively new initiative, Active Marina had another successful year across almost 50 marinas, with over 3,000 people taking part in training, skills workshops and social events. The scheme has now been extended to the Home Countries.

Sailing for people with disabilities continues to go from strength to strength; total participation grew by 25 per cent to 44,000, with nearly 13,000 of these now regular sailors. There are currently 172 sites throughout the UK that support sailing for disabled people, with a number of these catering for almost any disability. An increase in Sport England funding enabled Sailability to sign up a team of four Regional Disability Development Officers. There has also been a rise in the number of volunteers, with nearly 500 people attending disability awareness courses. The largest ever RYA Sailability National Conference was attended by 130 delegates, including the winners of the RYA Sailability Volunteer Awards.

The latest Arkenford Participation and Sport England Active People surveys showed some encouraging signs in terms of increasing participation amongst less frequent boaters, but relatively static participation against our core contractual obligation to Sport England of four times per month. Increasing the frequency of participation and overall number of participants remains the primary Sport Development focus.

A club survey conducted during the year received an 86 per cent response rate, and indicated a total club membership of approximately 300,000. It also highlighted some key areas in which we need to improve in terms of communication and support to clubs. Meanwhile, over 300 clubs signed up to pay annual affiliation fees by Direct Debit during the year – which has since increased to almost 400.


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PROMOTING SAFETY AFLOAT Work on the Safety Management System accelerated during the year with greater focus on external communications and initiatives to fill perceived knowledge gaps, such as lifejacket testing by people with different disabilities. Our safety initiative, launched at the 2014 London Boat Show with the full support of the MCA, MAIB, RNLI and the Shipping Minister, generated a positive response. Core to this work is the publication of an annual Safety Advisory Notice – a clear, easily accessible digest of current critical safety issues. This is the first safety awareness publication of its kind for the leisure boating community and will build upon the RYA’s existing structure for offering advice on safety. The Safety Information section of the RYA website received 38,000 hits during the year.

The RYA is pressing the MCA to review the compulsory carriage regulations regarding pyrotechnic flares. We believe that the availability of EPIRBs and GPS-linked DSC VHF for distress alerting and Electronic Visual Distress Signals for final mile location provides boaters with a more effective and far less dangerous means of initiating a distress alert and, more importantly, of triggering a timely response.

The 2013 Milly RIB accident in Padstow was a tragic reminder to us all of the importance of wearing a kill cord. The RYA assisted the MAIB in its investigations into the incident and continues to work with them and the MCA and RNLI in promoting this important safety message. Over 30,000 of our ‘THINK! wear your kill cord’ console stickers have been distributed in partnership with radio and engine manufacturers, brokers and training centres.

RAISING STANDARDS OF PERFORMANCEThe start of a new four-year cycle provided the opportunity to reflect on past successes and to reframe our programmes in order to excel in an increasingly competitive Olympic and Paralympic environment. Increased funding from both UK Sport and Sport England allowed investment in the very best facilities and support for elite and emerging

talent. The announcement that Tokyo will host the 2020 Olympic and Paralympic Games, along with confirmation that existing events and equipment are locked in until then, has aided long-term planning.

Two dynamic new classes were introduced into the Olympic programme: the Nacra 17 mixed multihull and the 49erFX women’s skiff, each providing more opportunities for our most talented female sailors. These new classes, coupled with the decision of some established Olympians to move into new careers, have created some exciting changes in the team line-up. The Paralympic pathway was boosted by the addition of 15 new 2.4mR boats, which will bridge the gap between the RYA’s Sailability programme and the British Sailing Team’s performance remit at Paralympic level.

The British Sailing Team secured seven World Championship and eight European Championship medals over the season as part of a 70 medal haul which saw international podium finishes in every one of the 13 Olympic and Paralympic classes on at least one occasion. Great Britain emerged as top nation from both the 2013/14 ISAF Sailing World Cup and the inaugural EUROSAF Champions Sailing Cup series.

Our youth and junior teams earned 20 World and six European Championship medals, highlighting the strength and depth of talent further down the RYA’s performance pathway. A record 329 sailors attended the RYA Youth National Championships in Largs, despite freezing conditions. Around 1,240 junior sailors competed for the RYA Zone and Home Country Championships. The RYA Eric Twiname Championships and the RYA Team 15 Champions Cup were also well attended, providing invaluable event experience for aspiring young racers. The RYA provided grant or coaching support for around 500 British Youth Sailing Team talents to attend some 49 international regattas.


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In order to support this important volunteer base bursaries were awarded to those wishing to develop their careers as RYA Race Officials. The provision of reliable handicapping information is a priority in supporting club racing, and Portsmouth Yardstick online was extremely popular, with almost 14,000 submissions against a target of just 5,500. This, coupled with progress in rolling out the National Handicap for Cruisers system to clubs, will hopefully drive increased participation in handicap racing.

Powerboat Racing saw successes across the three disciplines of Circuit, Offshore and JetSport, with championship titles on the UK and World stages. At the annual RYA Powerboat Racing Awards Ceremony over 50 awards were presented to the powerboat racers who had achieved British, European, World and Speed records. The RYA is leading an international task force to redevelop and improve the structure of the Union Internationale Motonautique (UIM), the international governing body for the sport. At the UIM Awards Gala the RYA was awarded the Stefano Casiraghi Memorial Trophy in recognition of our services to the sport of powerboat racing. Plans for a training programme and more sustainable pathway into the sport were advanced with the introduction of two new boats, funded in partnership with the UIM. The final syllabus content is being refined and tested and new recognised centres will be approved once the syllabus is complete.

EDUCATION AND TRAINING2013 proved to be another strong year for the 2,400 recognised centres and 24,000 instructors of the RYA training community, with more than 200,000 training certificates issued. The dinghy scheme remained on track with clubs and commercial training centres reporting particularly high interest in taster sessions for first time sailors. Entry level windsurfing courses remained flat, whilst the more advanced courses saw an increase. Personal watercraft courses have shown a steady increase in numbers whilst inland waterways and powerboat courses remain constant.

A Keelboat Manager was appointed with a remit to increase participation in yacht and keelboat racing and raise the standards of British crews in international events. Forty five young sailors were selected for the joint RYA-UKSA British Keelboat Academy, while the RYA and UK Etchells Class partnership further supported top level one-design keelboat racing. Work with British University and Colleges Sport to attract, retain and recruit sailors into keelboat, match and team racing disciplines continues. In match racing, Ian Williams was nominated as one of the finalists in the ISAF Sailor of the Year awards.

As part of our commitment to improve the quality of club level race coaching, 40 Racing Coach Level 2 courses were delivered. The Racing Coach Level 3 course has been a particular focus over the last eight months, with steps taken to increase the impact this course has on regional and national junior level coaching. Further improvements have been made to the already highly successful coaching development programmes for Zone, National and World Class coaches. Coaching at this level is arguably the best it has ever been and is critical to Great Britain remaining the world’s top sailing nation and in maintaining a healthy, vibrant UK racing scene. UK Sport has continued to increase its investment in coaching, highlighting how critical this is to elite performance, and regularly cites the RYA’s programmes as the most comprehensive and best example of National Governing Body-led coaching development.

A small yet significant change in our structure saw the merger of the Technical Department into the Racing Department to form the Technical and Racing Services team responsible for all sail racing aspects of our Technical, Race Officials and Racing Rules services to clubs and classes. A full programme of regional conferences for Race Officials included a range of topics across all disciplines, from judging and umpiring to race management, supplemented by club talks and seminars, reaching some 1,100 attendees in eight regions.


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We will continue to encourage participation to all, irrespective of age, disability, ethnicity, gender and location, across all disciplines of our sport.

The journey to the Rio 2016 Games sees two critical milestones in 2014, with the first nations qualifying for the Olympics at the Santander 2014 World Championships in September, immediately after the first official Test Event in Rio in August.

Our central mission for 2013-17 ‘to become more relevant to more boating communities in order to be more representative and influential’ will be underpinned in the current year by a project to review our membership offer. We aim to develop a clearer, simpler and more compelling membership category model that is valued by all current and potential members, that gives choice and is tailored with relevant benefits and rewards. Our members are our best advocates and I hope that the continued evolution of the RYA inspires you to want to encourage those you meet on the water, in the club or at the marina to join us.

Sarah Treseder Chief Executive

New courses for inland waterways and motor cruising should see some growth in these schemes over the next year or so. Most importantly RYA Training received an independent quality assurance rating of 91% demonstrating the high level of customer satisfaction in our courses and their delivery. Three hundred organisations use the Customer Satisfaction Survey System run by The Leadership Factor and the RYA is in the top 5%.

Overseas, the RYA Yachtmaster Certificate of Competence is now formally recognised in New Zealand, adding to the growing list of nations accepting this qualification. The RYA Yachtmaster Certificate of Competence remains the qualification of choice in the Commercial world, and we work hard with regulators and other industry partners to ensure this remains the case. Newly recognised centres opened in Hong Kong, the Maldives and Abu Dhabi and we continue to take enquiries from other distant locations as the reputation of our schemes strengthens.

The development of RYA e-learning continued with the launch of the Marine Radio SRC online course. With accessible online content and interactive scenarios the course has pushed the boundaries of e-learning. Overall, student numbers for online courses continued to grow, with almost 6,000 RYA online candidates in 2013. Digital publications also showed significant growth in 2013, and 30 e-books are now available via the RYA webshop as well as other distribution channels. The enhanced format of these publications is stunning and includes additional functionality.

LOOKING TO THE FUTUREAs we head into 2015, the Association will see many exciting challenges and opportunities as we develop new programmes and continue to nurture the strong relationships we already enjoy with partners and organisations, including the RYA Foundation.

For the purposes of The Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 the Chief Executive’s Report satisfies the requirements of the “Strategic Report” and was approved by the Board as such on 12th August 2014.


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THE DIRECTORS WHO HELD OFFICE FROM 1ST APRIL 2013 TO 31ST MARCH 2014 WERE AS FOLLOWS:

NON-EXECUTIVES Clark, ChairmanO Franks, Deputy ChairmanP BryansT Elbrick

STATUSThe Royal Yachting Association is a company limited by guarantee and is referred to in this Report and Financial Statements either as “the Association” or “the company”.

CORPORATE GOVERNANCE STATEMENTThe RYA supports the principles and procedures of good corporate governance as set out in the Combined Code published by the Financial Reporting Council. This code was drawn up for listed companies; the RYA is neither obliged nor able to follow it completely. However, the Board of Directors strives to implement it as far as is practicable for a sports governing body.

The affairs of the RYA are managed by the staff under the direction of the CEO. The Chairman and Deputy Chairman sit on the board ex-officio. The Head of Finance is appointed as a Director by Council. The election of the non-executive directors is informed by a matrix of the competencies and skills desired to be represented on the Board. The Board carries out an annual exercise to review its own performance and the performance of individual directors.

Non-executive members of the Board may not be financially rewarded for their work as directors. A register of Board members’ interests is maintained which details any personal or business interests that could give rise to a conflict of interest. Directors and senior staff complete an annual certificate in accordance with Financial Reporting Standard No. 8. The Association maintains directors’ and officers’ insurance in line with S.234 of the Companies Act 2006.

The RYA Council is the body that directly represents the interests of the members of the Association. Its primary function is to ensure that the members’ boating interests, rights and wishes are reflected in the Association’s policies and high level strategies. It also oversees the Board’s performance on behalf of members. Council has established policy-forming committees for each area of the Association’s activities. Members of the committees are volunteers who have demonstrable expertise in the relevant areas.

The Audit Committee assesses financial reporting, risk management, safety issues and procedures. It reports to the Board in this role. It also acts as a committee of Council to help Council discharge its responsibility to oversee the performance of the Board on behalf of the Association’s members.

The Chief Executive is responsible for implementing the strategy approved by the Board in accordance with Council policy, leading and managing the staff and overseeing the RYA’s day-to-day operations.

STATEMENT OF DIRECTORS’ RESPONSIBILITIES The directors are responsible for preparing the Strategic Report, Directors’ Report and the Financial Statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. Company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing those financial statements, the directors are required to:• select suitable accounting policies and apply them consistently;• make judgements and estimates that are reasonable and prudent;• prepare the financial statements on the going concern basis

unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

AUDIT INFORMATIONSo far as the directors are aware, there is no relevant audit information of which the company’s auditors are unaware. The directors have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information.The Board of Directors confirm that they have complied with the above responsibilities.

AUDITORSA resolution re-appointing haysmacintyre will be proposed at the AGM in accordance with S.485 of the Companies Act 2006.

On behalf of the Board on 12th August 2014.

D A Strain FCCA Director

Registered Office:

RYA House,

Ensign Way,

Hamble,

Hants,

SO31 4YA

A Rowe G Holt MBE*D Williamson*J Poulton**M Moore**

EXECUTIVES Treseder, Chief ExecutiveD Strain, Head of Finance

*Retired 21st November 2013**Appointed 21st November 2013

DIRECTORS’ REPORT


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INDEPENDENT AUDITORS’ REPORT

We have audited the financial statements of the Royal Yachting Association for the year ended 31st March 2014 which comprise the Income and Expenditure Account, the Statement of Total Recognised Gains and Losses, the Balance Sheet, the Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members 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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORSAs explained more fully in the Directors’ Responsibilities Statement set out on page 11, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTSA description of the scope of an audit of financial statements is provided on the Financial Reporting Council’s website at www.frc.org.uk/auditscopeukprivate

OPINION ON FINANCIAL STATEMENTSIn our opinion the financial statements:

• give a true and fair view of the state of the company’s affairs as at 31st March 2014 and of its deficit for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT 2006In our opinion the information given in the Directors’ Report and the Strategic Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTIONWe have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

David Riley (Senior Statutory Auditor) for and on behalf of: haysmacintyre, Statutory Auditor 26 Red Lion Square London WC1R 4AG 12th August 2014


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INCOME AND EXPENDITURE ACCOUNTFOR THE YEAR ENDED 31ST MARCH 2014 Note 2014 2013

£ £

Income 2 19,341,326 20,927,759

Direct expenditure 3 (13,991,719 (14,909,692

Net income 5,349,607 6,018,067

Administrative expenditure 4 (5,018,433 (4,979,938

Operating surplus 8 331,174 1,038,129

Return on investments 9 72,475 61,341

Rental income 38,955 30,218

Gains on disposal of tangible fixed assets 5,594 5,861

Gains on disposal of investments 1,800 -

Impairment of tangible fixed assets (574,400 -

(Deficit)/Surplus on ordinary activities before taxation (124,402 1,135,549

Taxation 10 (36,462 (81,788

Retained (deficit)/surplus for the year 19 (160,864 1,053,761

STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES31ST MARCH 2014

Note 2014 2013

£ £

(Deficit)/Surplus for the year after taxation (160,864 1,053,761

Actuarial gain/(loss) 23(f) 397,000 (201,000

Total gains and losses recognised since last annual report 20 236,136 852,761

The notes on pages 16 to 26 form part of the financial statements

All income, and the operating surplus, is derived from continuing activities.

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BALANCE SHEET 31ST MARCH 2014 Note 2013

£ £ £ £

Tangible fixed assets 11 7,423,852 8,182,304

Investments 12 67,517 157,144

7,491,369 8,339,448

Current assets Stocks 13 472,541 610,633

Debtors 14 1,852,995 1,569,621

Cash at bank 22(b) 1,234,957 809,696

3,560,493 2,989,950

Creditors: amounts falling due within one year 15 (3,282,638 (3,225,154

Net current assets/(liabilities) 277,855 (235,204

Total assets less current liabilities 7,769,224 8,104,244

Creditors: amounts falling due after more than one year 16 (236,937 (376,616

Deferred taxation 18 (81,517 (75,994

Pension liability 23(c) (16,000 (453,000

Net assets 7,434,770 7,198,634

Financed by:

Accumulated fund 19 7,434,770 7,198,634

Members’ funds 20 7,434,770 7,198,634

The financial statements were approved and authorised for issue by the Board on 12th August 2014 and were signed below on its behalf by:

S Clark Chairman

2014

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CASHFLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2014 Note 2013

£ £ £ £

Operating surplus 331,174 1,038,129

Depreciation 476,042 566,567

Gain on revaluation of tangible fixed assets (87,781 -

Pension contributions (71,000 (70,000

Current and past service cost 90,000 78,000

Decrease in stocks 138,092 224,837

(Increase)/decrease in debtors (281,402 325,616

Increase/(decrease) in creditors 179,563 (644,702

Net cash inflow from operating activities 774,688 1,518,447

Returns on investment and servicing of finance

Interest received 7,927 6,341

Dividends and other income received 44,503 35,218

Net cash inflow from returns on investments and 52,430 41,559 servicing of finance

Taxation

Corporation tax paid (75,180 (52,641

Capital expenditure and financial investment

Payments to acquire tangible fixed assets (207,274 (270,615

Receipts from sales of tangible fixed assets 8,658 9,551

Receipts from sales of investments 89,457 -

Net cash outflow for capital expenditure and financial investments (109,159 (261,064

Financing

Repayment of loan (217,518 (732,482

Increase in cash 22 (a) 425,261 513,819

2014

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NOTESTO THE ACCOUNTS1. ACCOUNTING POLICIES

(a) Accounting BasisThe financial statements have been prepared on the historical cost basis, as modified by the revaluation of long leasehold premises, and in accordance with applicable accounting standards. The directors have reviewed the Association’s current financial position and future cash flow forecasts and are satisfied that the Association will continue to be able to meet its liabilities as they fall due. As such, the Association’s financial statements have been prepared on the going concern basis.

(b) Income RecognitionIncome is recognised at the fair value of the consideration receivable for the sale of goods and/or services in the ordinary nature of the business. Income is shown net of VAT for goods sold and services provided and is recognised in the accounting period in which the supply is made.

Annual personal members’ subscriptions are received on different dates during the year and the credit to the income and expenditure account represents the proportion receivable appropriate to the accounting period. Affiliated club subscriptions are due in January for the calendar year and the credit to the income and expenditure account represents the proportion receivable appropriate to the accounting period.

Grants related to expenditure on tangible fixed assets are deferred fully in the year of receipt and are then credited to the income and expenditure account at the same rate as the depreciation on the assets to which the grants relate. Revenue grants are credited to income in the period to which they relate. The amounts shown in the balance sheet in respect of grants consist of the total grants receivable to date, less the amounts so far credited to income.

(c) StockStock and work in progress have been valued at the lower of cost and net realisable value. Stocks are generally represented by paper and electronic publications. Work in progress represents costs associated with publications not yet available for resale.

For finished goods cost is calculated on the first in first out method and for work in progress cost reflects costs incurred to date.

(d) DepreciationLeasehold land and buildings are stated at open market value on an existing use basis.

Specialised property relates to leasehold property at Portland which is of such a nature that it would not be sold on the open market for continuation of its existing use. Accordingly this property is stated at valuation on a depreciated replacement cost basis.

A full valuation is undertaken every five years and an interim valuation every three years. Any surplus or deficit is transferred to the revaluation reserve unless any impairment relates to a permanent diminution in value in which case it is taken to the income and expenditure account. All other tangible fixed assets are stated at cost.

Depreciation is calculated using the straight line method to write down the cost of all assets, except for land, over their expected useful lives using the following rates:

(e) InvestmentsInvestments are included at cost less provision for permanent diminution. Profits or losses generated on disposal of investments are recorded in the year in which the disposal is made.

(f) Deferred TaxationDeferred tax is provided for using the full provision method. Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. It is the Association’s policy not to discount deferred tax to reflect the time value of money.

(g) Pension CostsThe Association has a defined benefit pension scheme, the assets of which are administered by trustees. The Association complies with FRS 17 “Retirement Benefits”, and all subsequent amendments, and the pension scheme surplus or deficit is recognised in full. The movement in the surplus/deficit is split between administrative expenditure; return on investments and in the statement of total recognised gains and losses. The Association also contributes to a group personal pension scheme and to certain employees’ personal pension schemes. Such contributions are recognised in the income and expenditure account when they fall due.

Leasehold buildings 2% Specialised property 2% Fixtures, fittings, vehicles and equipment 7 - 50%


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2. INCOME 2014 2013

£ £

Income is derived from the following sources:

Subscriptions and donations 4,041,808 4,151,455

Sales of goods and services 5,565,662 5,507,125

Events and coaching 1,177,292 2,487,083

Sports Council grants receivable 2,631,969 2,555,536

Other grants 122,276 155,474

World Class Programme grants and fees 5,802,319 6,071,086

19,341,326 20,927,759

Income is derived from the following geographical locations: £ £ United Kingdom 17,509,835 19,208,560

European Union 1,217,883 1,118,899

Rest of the World 613,608 600,300

19,341,326 20,927,759

3. DIRECT EXPENDITURE 2014 2013

£ £

Membership promotion and services 1,174,316 1,321,758

Cost of goods and services sold 2,719,143 2,680,260

Events and coaching 1,649,472 2,250,471

Sports Council grants disbursed 2,631,969 2,555,536

Other grants 14,500 30,581

World Class Programmes 5,802,319 6,071,086

13,991,719 14,909,692

4. ADMINISTRATIVE EXPENDITURE 2014 2013

£ £

Establishment expenses 78,908 162,594

Staff costs (Note 5,6 & 7) 3,712,686 3,676,424

Finance costs 76,777 92,869

Administrative overheads 1,150,062 1,048,051

5,018,433 4,979,938


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Remuneration paid to the two executive directors during the year amounted to £207,186 (2013: three executive directors; £204,618). The remuneration of the highest paid director was £135,225 (2013: £130,370). No remuneration was paid to the seven non-executive directors.

6. FINAL SALARY PENSION SCHEME

The Association has a non-contributory pension scheme for certain of its senior managers and coaches who joined before 31st March 2001 that provides retirement benefits based on final salary and length of service. The assets of the scheme are held separately from those of the Association. Contributions to the scheme are charged to the Income and Expenditure account so as to spread the cost of the pensions over the employees’ working lives with the Association. The contributions (currently 29.6% of salary) are determined by an actuary on the basis of triennial valuations using a variant of the entry age method.

The most recent triennial valuation available was at 1st April 2011. The value of the assets represented 104% of the benefits that had accrued to members, after allowing for expected future increases in earnings. The financial assumptions that have the most significant effect on the results of the valuation are those relating to the rate of return on investments and the rates of increase in pensionable salaries. The principal (non-financial) assumptions that have the most effect include mortality rates. The contributions for the year were £71,000 (2013: £70,000). The next triennial review is due as at 1st April 2014.

The most recent FRS 17 valuation as at 31st March 2014 showed that the market value of the scheme’s assets was £6,956,000 (2013: £6,812,000).

Senior managers who joined from 1st April 2001 have been offered membership of the group personal pension plan.

7. OTHER PENSIONS

The Association contributes to individual pension plans for certain coaches and middle managers who joined before 1st April 2003 at a rate of 12.5% of annual salary on a monthly basis. The premiums paid are charged to the Income and Expenditure account.

Since 1st April 2003 all new staff have been eligible to join a single group personal pension plan. The Association’s contribution to the GPPP is equivalent to 10% of annual salary (and the employees’ is 3%). The premiums paid are charged to the Income and Expenditure account.

The premiums paid into these plans amounted to £461,497 (2013: £360,026).

5. STAFF COSTS 2014 2013 £ £Salaries 4,481,088 4,619,758

Social Security Costs 494,877 537,079

Pension and Life Assurance Costs 665,069 478,885

5,641,054 5,635,722

Less staff costs included in Direct Expenditure (1,928,368 (1,959,298

3,712,686 3,676,424

The average number of employees during the year was Number NumberSenior Management 25 23

Executive Officers and Coaches 56 57

Administration and Support 79 75

160 155

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10. TAXATION

2014 2013 £ £Surplus on ordinary activities before tax (124,402 1,135,549

Surplus on ordinary activities multiplied by the standard rate of UK Corporation tax of 20% (2013: 24%) (24,880 272,532

Effects of:

Amounts not taxable 74,606 (170,556

Capital allowances (16,011 (12,832

Exempt Dividend (1,110 (1,185

Marginal Relief - (11,113

Current tax charge 32,605 76,846

Corporation tax over provision in prior years (1,666 –

Corporation tax charge for the year 30,939 76,846

Deferred taxation (Note 18) 5,523 4,942

Taxation recognised in Income and Expenditure account 36,462 81,788

No significant timing differences or other factors arise in respect of the profits subject to tax and no material deferred tax asset or liability exists.

8. OPERATING SURPLUS 2014 2013 £ £Surplus on ordinary activities is stated after charging/(crediting):

Depreciation included in direct expenses 209,387 285,581

Depreciation included in general expenses and establishment expenses 266,655 280,986

Gain on revaluation on tangible fixed assets (87,781 -

Operating lease rentals – land and buildings 32,521 28,560

Auditors’ remuneration audit fees 27,625 29,200

Auditors’ non audit fees 8,150 6,730

9. RETURN ON INVESTMENTS 2014 2013

£ £Dividends and interest on quoted investments 5,548 5,000

Interest on deposits 7,927 6,341

Net return from other finance income relating to the defined benefit pension scheme (Note 23(f)) 59,000 50,000

72,475 61,341

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11. TANGIBLE FIXED ASSETS

£ £ £ £Cost/valuation At 1st April 2013 3,335,000 4,526,982 3,264,398 11,126,380

Additions - - 207,274 207,274

Disposals - - (94,296 (94,296

Revaluation (90,000 (1,026,982 - (1,116,982

At 31st March 2014 3,245,000 3,500,000 3,377,376 10,122,376

Depreciation At 1st April 2013 115,477 362,149 2,466,450 2,944,076

Charge for year 62,304 90,432 323,306 476,042

On disposals - - (91,232 (91,232

Revaluation (177,781 (452,581 - (630,362

At 31st March 2014 - - 2,698,524 2,698,524

Net book value At 31st March 2014 3,245,000 3,500,000 678,852 7,423,852

At 31st March 2013 3,219,523 4,164,833 797,948 8,182,304

2014 2013 £ £Cost 8,645,885 8,645,885

Accumulated depreciation (1,244,310 (1,071,392

7,401,575 7,574,493

Long leaseholdpremises

Fixtures,fittings,

vehicles &Equipment Total

12. INVESTMENTS £

COST

At 31st March 2013 157,144

Disposals (89,627

At 31st March 2014 67,517

All investments are listed and dealt with on a recognised stock exchange. The market value of the investments at 31st March 2014 was £82,487 (2013: £177,021). The investments are held at cost less a provision for diminution in value of £103,699.

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At 31st March 2014 the two long leasehold properties at Hamble were valued at £3,245,000 on an open market value existing use basis and the specialised property at Portland was valued at £3,500,000 on a depreciated replacement cost basis by Hughes Ellard, Chartered Surveyors.

If all of the properties were stated on an historical basis, the amounts would be as follows:

Specialised property


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13. STOCK 2014 2013

£ £

Finished products 407,382 555,464

Work in progress 65,159 55,169

472,541 610,633

Replacement cost is not significantly different to the amounts stated above.

14. DEBTORS 2014 2013

£ £

Trade debtors 702,148 737,789

Other debtors 530,143 413,293

Prepayments 620,704 418,539

1,852,995 1,569,621

15. CREDITORS:AMOUNTS FALLING DUE WITHIN ONE YEAR 2014 2013

£ £

Bank loan – 104,167

Trade creditors 744,575 791,645

Corporation tax 32,605 76,846

Other creditors 35,479 35,428

Accruals 278,413 288,795

Subscriptions in advance 1,793,202 1,713,453

Deferred grants (Note 17) 255,633 50,956

Other deferred income 142,730 163,864

3,282,638 3,225,154


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18. DEFERRED TAXATION 2014

£

Deferred taxation in respect of accelerated capital allowances:

Balance at 1st April 2013 75,994

Charged to Income and Expenditure account 5,523

Balance at 31st March 2014 81,517

16. CREDITORS:AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 2014 2013

£ £

Bank loan – 113,351

Deferred grants 236,937 263,265

236,937 376,616

Debt maturity: amounts payable

Due within one year – 104,167

Due between one to two years – 104,167

Due between two to five years – 9,184

– 217,518

The Association took out a loan to finance the acquisition of RYA Portland House. The interest rate was 1.25% above one month sterling LIBOR and the loan was secured on certain assets of the Association. The loan was fully repaid as at 31st March 2014. The fit out of the elite Performance Unit in Portland Marina was funded by a capital grant from Sport England, which is disclosed in Note 17. Sport England has taken a legal charge on the 15-year lease to the effect that the grant may be repayable if the Association breaks the lease during this period.

Grants are released to Income and Expenditure account to match expenditure (including depreciation) incurred on the defined programmes.

17. DEFERRED GRANTS Capital Revenue Total

£ £ £

Balance at 1st April 2013 299,593 14,628 314,221

Grants received – 8,607,681 8,607,681

Grants released (36,328 (8,393,004 (8,429,332

Balance at 31st March 2014 263,265 229,305 492,570

19. RESERVES

£

At 1st April 2013 7,198,634

Retained deficit for the year (160,864

Actuarial gain (Note 23 (f)) 397,000

At 31st March 2014 7,434,770

AccumulatedFund

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22. NOTES TO THE CASH FLOW STATEMENT

2014 2013 £ £

(a) Reconciliation of net cash flow to movement in net debt:

Increase in cash in the year 425,261 513,819

Cash outflow from debt financing 217,518 732,482

Movement in net debt 642,779 1,246,301

Opening net funds/(debt) 592,178 (654,123)

Closing net funds 1,234,957 592,178

(b) Analysis of changes in net funds

Total £ £ £ £

At 1st April 2013 809,696 (104,167) (113,351) 592,178

Cashflow 425,261 104,167 113,351 642,779

At 31st March 2014 1,234,957 - - 1,234,957

Debt dueafter one

year

Debt duewithin one

year

Cashat

bank

Every full member of the Association undertakes to contribute to the assets of the Association, in the event of the same being wound up while they are a member or within one year after they cease to be a member, for payment of the debts and liabilities of the Association contracted before they cease to be a member, and of the costs, charges and expenses of winding up, and for the adjustment of the rights of the contributors among themselves, such amount as may be required not exceeding £1. The number of members of all categories at 31st March 2014 was 102,144 (2013: 101,863).

21. LIABILITY OF MEMBERS

20. RECONCILIATION OF MOVEMENTS IN MEMBERS’ FUNDS 2014 2013 £ £

(Deficit)/surplus for the year (160,864 1,053,761

Other gains and losses (Note 23 (f)) 397,000 (201,000

Net increase in members’ funds 236,136 852,761

Opening members’ funds 7,198,634 6,345,873

Closing members’ funds 7,434,770 7,198,634

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23. FINAL SALARY PENSION SCHEME COMMITMENTS

(a) The Association complies with FRS 17 and the subsequent amendment dated December 2008 which aligns the disclosure and accounting requirements to that of IAS 19 “Employee Benefits”. The valuation set out below has been based on the triennial valuation at 1st April 2011, as updated by a qualified actuary, in order to assess the assets/(liabilities) of the scheme on the FRS 17 basis at 31st March 2014. This Note introduces the necessary changes in disclosures and restates prior year figures where appropriate.

The principal actuarial, and main financial, assumptions used to calculate the scheme liabilities under FRS 17 (as amended) are:

2014 2013 2012

Rate of increase in salaries 2.50% 3.45% 3.45%

Rate of increase of pensions in payment for service up to 31st March 2004 5.00% 5.00% 5.00%

Rate of increase of pensions in payment for service between 1st April 2004 and 31st March 2006 (LPI maximum 5%) 2.50% 2.35% 2.35%

Rate of increase of pensions in payment for service after 1st April 2006 (LPI maximum 2.5%) 2.10% 2.15% 2.15%

Discount rate 4.30% 4.10% 4.60%

Inflation rate 2.50% 2.45% 2.50%

Rate of revaluation for pensions in deferment 2.50% 2.45% 2.45%

31st March2013

31stMarch2014

(b) The assumption on the rate of increase in salaries has been based on the forecast inflation rate. An increase of 0.5% in the assumed rate would increase liabilities by between 5% and 10%.

The rates for increases in pensions in payment are governed by the rules of the scheme.

The discount rate used is the yield on the iBoxx index ‘AA rated corporate bonds with terms over 15 years’. A reduction in the assumed rate of 0.25% would increase the liabilities for non-pensioner members by some 5%.

The inflation rate is a best estimate assumption of future RPI over the long term. The assumption has been guided by the yields of medium- term conventional and index-linked gilts, and by consideration of the Bank of England’s published ‘implied inflation curve’ over 20 years. An increase in the assumed rate of 0.25% would increase liabilities for non-pensioner members by some 5%. CPI is assumed to be 1% less than RPI.

The rate of revaluation for pensions in deferment is CPI, capped at 5%. The assumption for mortality rates used at 31st March 2014 is based on the standard table S1PA, using 100% of the base table with the CMI_2013 mortality projections with a long-term rate of improvement of 1%. The mortality assumptions used at 31st March 2013 followed the standard table S1PA, using 100% of the base table with medium cohort mortality improvements subject to a 1% minimum to the annual improvements. Members are treated as if they were three years older than their partners. Assuming retirement at age 65, the life expectancies based on the mortality assumption are illustrated as follows:

For a male aged 65 now 22.1 21.6

At 65 for a male aged 45 now 23.5 23.5

For a female aged 65 now 24.3 24.2

At 65 for a female aged 45 now 25.8 26.1


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(c) The assets in the scheme and the expected rate of return were:

2014 2013 2012 £’000 % £’000 % £’000 %

Equities 4,516 6.5 4,363 6.0% 4,123 6.3%

Bonds * 1,958 4.2 2,200 4.0% 1,609 4.4%

Cash and other assets 482 3.0 249 4.6% 372 4.2%

Total market value of assets 6,956 6,812 6,104

Defined benefit obligation (6,972 (7,265 (6,398

Net pension (liability)/asset (16 (453 (294

2014 2013(d) Movement in scheme’s assets during the year: £’000 £’000

Assets at beginning of the year 6,812 6,104

Expected return on the assets 357 344

Actuarial gains 23 444

Contributions received 71 70

Benefits paid (307 (150

Assets at the end of the year 6,956 6,812

(e) Movement in the defined benefit obligation (i.e. liabilities) during the year:

Defined benefit obligation at beginning of the year 7,265 6,398

Current service cost 90 78

Interest on obligation 298 294

Actuarial (gains)/losses (374 645

Benefits paid (307 (150

Defined benefit obligation at the end of the year 6,972 7,265

* A weighted average return has been calculated for the actual holding of bonds in the pension fund.

The majority of the assets of the fund are divided between an investment in the Rathbones UK Managed Pension Fund (31%) and a portfolio managed by Ashcourt Rowan Asset Management (66%). The remainder of the assets are directly managed by the trustees. At 31st March 2014 the assets were split between equities (65%), UK Government and corporate bonds (28%) and property funds and cash (7%). The trustees’ policy is to remain weighted toward equities in the expectation of better returns over the longer term.

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(g) Five-year history

2014 2013 2012 2011 2010 £’000 £’000 £’000 £’000 £’000

Fair value of scheme assets 6,956 6,812 6,104 5,920 5,587

Defined benefit obligation (6,972 (7,265 (6,398 (5,524 (4,935

Surplus/(deficit) in the scheme (16 (453 (294 396 652

Experience gains/(losses) on scheme assets 23 444 (73 51 1,116

Percentage of scheme assets 0% 7% 1% 1% 20%

Experience gains/(losses) on liabilities 124 (46 (54 (63 56

Percentage of scheme liabilities 2% 1% 1% 1% 1%

(h) General disclosures

2014 2013(f) Amounts charged to operating surplus: £’000 £’000

Current service cost 90 78

Amounts credited to return on investments:

Expected return on assets 357 344

Interest on liabilities (298 (294

Net financial return 59 50

Amounts recognised in the Statement of Total Recognised Gains and Losses:

Actual return less expected return on assets 23 444

Experience gains/(losses) on the liabilities 124 (46

Change in assumptions 250 (599

Actuarial gains/(losses) 397 (201

24. OPERATING LEASE COMMITMENTS 2014 2013 £ £Land and buildings Expiring between two and five years 35,350 - Expiring after more than five years 28,560 28,560

63,910 28,560

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The trustees are appointed by the Association. Normally, two thirds of the trustees will be member-nominated. The current incumbents are: the former Head of Finance (pensioner member-nominated), the former Sports Development Manager (member-nominated) and a member of RYA Council (RYA-nominated).

The scheme is fully funded in terms of the valuation carried out for the triennial review as at 1st April 2011. However, the FRS 17 valuation as at 31st March 2014 shows a funding deficit of £16k. The Directors recognise the Association’s obligation to meet the liabilities of the scheme.

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RYA HouseEnsign WayHambleSouthamptonHampshireSO31 4YA

T: 023 8060 4100F: 023 8060 4299

www.rya.org.ukCompany Registration Number: 878357

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