Royal Engineers Central Charitable Trust Charity number: 1003032 ROYAL ENGINEERS CENTRAL CHARITABLE TRUST <1'1s'.: Iii Trustees. report and financial statements For the year ended 31 December 2024 EMPLOYER RECOGNITION SCHEME GOLD AWARD 2022 ARMED FOICES COVENANT Proudly supporting those who serve Royal Engineers Central Charitable Trust Contents 15-18 Reference and administrative details of the charity Chairfs Review Auditorfs report 4-14 19 Trustee's report Consolidated SOFA Trustees and advisers 20 Consolidated balan sheet 21 Charity balan￿ sheet 22 Consolidated statement of cash flows 23-38 Notes to the financial statements Royal Engineers Central Charitable Trust Reference and administrative details of the charity REGISTERED NUMBER 1003032 HEAD OFFICE AND REGISTERED OFFICE Headquarters Royal Engineers Brompton Barracks Chatham Kent ME4 4UG INDEPENDENT AUDITORS Kreston Reeves LLP 2nd Floor Maritime Place Quayside Chatham Maritime Chatham Kent ME4 4QZ BANKERS Lloyds Bank plc Coxs & Kings Branch PO Box 1000 London BX1 1LT SOLICITORS Furley Page LLP 39 St Margaret's Street Canterbury Kent CT12TX INVESTMENT MANAGERS 8lackRock Investment Managers 12 Throgmorton Avenue London EC2N 2DL Royal Engineers Central Charitable Trust Trustees and advisers Trustees and advisers who served during the year ending 31 December 2024 were as follow5.. Lieutenant General Sir Christopher Ti(*ell KBE Chief Royal Engineer and Chair Major General Richard Semple CBE Chair. Corps Finan￿ Committee Major General Kev Copsey 08E Repfesentslive Colonel Commandant Major General Nick Cavanagh CB President, Inslilulion of Royal Engineer5 Major General Alastair Dickinson C8E Chair, Royal Engineers Associatson Major General David Soulhall CBE Chair, Royal Engineers Museum Major Gener81 Eldon Millar MBE Chair. Royal Engineers Regimental Affairs Committee 8ngadier Jim Webster Commandant Royal School of Military Engineering Group Brigadier Simon Carvel Commander, 8 Engineer Bngade Brigadier Irena Dzisiewska Chief Engineer & Civil Military Co-operatson, HQ Allied Rapid Reaction Corps (tenu￿ complete October 20241 Brigadier Jason Ainley Chief Engineer & Civil Military Co-operats"on. HQ Allied Rapid Reaction Corps (assumed post O¢tober 2024) Colonel Dickie Hawkins MBE ADC Corps Colonel Colonel Alastair Cooper QVRM TD Corps Colonel (Reserves) Warrant OffI￿r Class 1 Spencer Eardley Corps Sergeant Major Mrs Dawn Marriott Non-Execulive Director Mr Russell Lovell Corps Secretary Major Ireliredl lan Sidebottom Corps Treasurer Royal Engineers Central Charitable Trust Chair's Review I would like to welcome you to the Royal Engineers Central Charitable Trust (RECCT) 2024 Annual Report and Financial Statements. The aim of this report is, as well as meeting our mandated legal requirement for audit, to demonstrate to our stakeholders how we protect, manage, and utilise the charity's funds on your behalf. The enclosed accounts demonstrate the high standard of financial management and governance required by law, managed and monitored by the Corps Finance Committee, and delivered by your staff in the Corps Funds department of Regimental Headquarters Royal Engineers. It is pleasing to report that our investments with the BlackRock run Armed Forces Charities Growth & Income Fund have continued to deliver increasing dividend payments. We have therefore been able to continue to increase the level of disbursements in support of the Corps. Our three investment properties continue to add diversity to our portfolio and currently generate around £50,000 per annum, after costs, to be used in support of our charitable aims. We also purchased a fourth propety at the end of 2024 which will add to the steady rate of income to supplement our other investments. Finally, this is my last Annual Report and Financial Statements as Chair of the Corps Finan￿ Committee as I handover to Major General Peter Rowell MBE in 2025. 1 would like to take this opportunity to record my thanks to the Corps Treasurer and his team, and the Corps Finance Committee, for their hard work and diligence in ensuring the charity remains buoyant and delivers tangible benefits to the Sapper Family. Once a Sapper, always a Sapper. Major General Richard Semple CBE Royal Engineers Central Charitable Trust Trustees, Report For the year ended 31 December 2024 I: Oryonis0lional pu Leadership IMegFity Defisiomoking, loord risk ond (onlrol thecliveness Equolity, diversity ond In(Iu5ion Openness ond u((ounlobility Ftsundollon: the Iruslee rnlg ond (hoFity conloxl The Trustees have reviewed their activities against the criteria sel out within the latest (2020) Charity Governan￿ Code (see above) and present their annual report and the audited con501idated financial statements of the charity and its subsidiaries for the year ended 31 December 2024. The financial statements have been prepared in accordance with the accounting policies set out al note 2 to the accounts and comply with the charity's trust deed, the Charities Act 2011, and the Charities SORP FRS 102. Trustees consider that in preparing these financial staternents they have taken into account all information that could reasonably be expected to be available {including levels of reserves held). Therefore, the going concern basis of accounting is deemed appropriate and there are no material uncertainties. This is confirmed by the completion of a 'Going Concern Assessment. which was passed to our auditors. The Trustees have appointed professional advisers and other organisalions to support them in delivering the charity's objectives These advisers and organisations are listed on page 1. The Trustees have vKitten agreements in place with each of them. OBJECTIVES AIMS AND ACTIVITIES Armed Forces charities today offer a broad range of sep11￿$ and support lo the Armed Forces community which can range from enhancing quality of life through to direct assistance and intervention. Every charity has its own vision, mission. aim, as well as eligibility criteria to support a specific beneficiary group or groups. The objects of the Royal Engineers Central Charitable Twst, which were formally reviewed in 2020, and are reconsidered annually. continue to be.. 'To prDmote th8 efficiency of the Amied Forces and in partKular The Go@s of Royal Engineers,. To promote the activities of the Royal Engineers Association and the Institution of Royal Engineers, as laid down in their ￿specI1ve charte￿,. To foster an esprit de coq)s in the Royal Engineers.. To relieve either generally or individually necessitous persons being members or fonner members of the Royal Engineets or the dependanls ofsuch pefft)ns." Royal Englneers Central Charftable Trust Trnsttts, Report For the year ended 31 December 2024 Icontlnued) Specffic activities for 2024 were set by Trustees against 8 planned budgets. Further detalls are provided under Achievements and Perfonnance. Trustees achieved their objectives for 2024 through a dedicated secretariat and maintaining annual income from: The Day's Pay Scheme (Regular and Reserve): Market Investments (dividends) and Investrnent Properties (rental income); Occasional legacies. Trading through our subsidiary Llmlted Company (RECE Ltd). PUBLIC BENEFIT The Trustees confirm they have referred to the infomiation contained in the Charity Commission's general guidance on public benefit when reviewing their aims and objectives and in deciding what activities the charity should undertake. The charity provides public benefit by assisting regular and reserve service personnel in the Corps of Royal Englneers to perfonn their roles and duties within the Brits'sh Amiy more effectively. The charity also supports the veteran communty and their families and thus enhances esprit de corps by promoting the concept of support to the Sapper famity for life. It does this by providing the support funding for sports, adventurous training, in-house publications, vlelfare, gatherings, and events. The Charity promotes the efficiency of the anned forces of the Crown by enhancing the British Army's capability to undertake the roles demanded of it including the defence of the UK and its interests. By supporting the wider Sapper family, it assists the Govemment in fulfilling its promise in the Armed Forces Covenant (which the RECCT signed up to in 2019) to treat Serving personnel. Veterans, and their families faity. In 2022. for its commitment to serving the Amied Forces communty, the RECCT was awarded a Gold Award urKler the Employer Recognition Scheme (ERS). In addition to promoting the efficiency of the Army and, in parttcular, the military efficiency of the Corps of Royal Engineers by promoting Esprit de Corps, the ￿r)rk of the RECCT benefits the public by: Allocating 50% of the charitable income it receives from the Day's Pay Scheme to the Royal Engineers Association (REA) whose prime objective is to provide financial assistance to those In need and benevolen￿ cases from serving and fomier members of the Royal Engineers and their families. Providing financial support to the Royal Engineers Museum, which is open to the general public and provides an educational outreach programme. Providing financial support to further educats'on via the Institution of Royal Engineers. Providing finanaal support to serving officers and soldiers (Regular and Reserve) participating in sports & games and adventurous training. ACHIEVEMENTS AND PERFORMANCE Trustees pursued the followlng activlties agalnst planned and authorised budgets". Continued support to network charities. Promoted esprit de corps throughout the Royal Engineers. The publication of six 'The Sapperf magazines in 2024 (in print and digital format). Financial support to 34 sports and games assoaations, unions and clubs, and several indNiduals who participated in high profile sports activities. Maintained the Pension Plan Scheme for private employees compliant with Auto Enrolment legislation. Maintained a 'Regimental Activity. fund of c£120k per annum. Introduced grants to assistthe Corps. Female Soldiers (on promotion to Sergeant) to purchase thelr Mess Kit uniform. Completed the Corps 'lkg refresh, programme. Continued grants in support af formal dinners for Senior NCOS attending their Sergeant's Course. 10. Continued grants in support of lunches for Junior NCOS during their Amy Leadership Development Programme. Generated income from investments (including investment properties). 12. Provided a retail service (in store, online, and 'on the road,) for Corps memorabilia and related Items. Royal Engineers Central Charitable Trust Trustses. Report For the year ended 31 December 2024 (contlnued) Supportlng Ne1v￿rk Charltles The historic Tnjstee arrangement that allocates a percentage from the Payroll Giving Scheme direct to nominated netrwork charities provided them with the following income.. 2024 2023 Royal Engineers Association Institutlon of Royal Engineers Royal Engineers Museum 429.519 205.994 50.000 404,923 198.649 50,000 Grants to Foster Esprlt de Corps Trustees authoiised the following grants in 2024: 2024 2023 RE Sports & Games Communications Hub (incl The Sapper Magazine) Esprit de Corps 380,195 70,869 235.251 333.274 72.920 226,848 Publlshlng The Sappef Magazlne Trustees provrded £70,869 (2023: £72.920) to fund the Comms Hub publication of an all ranks 'The Sapperf magazine. Some 4,000 copies ofThe Sapper magazine were published bi-monthly. Free copies of the magazine are sent to Regular Royal Engineer units for the benefit of the officers and soldiers who subscribe to the RECCT. Free copies were also sent to Royal Engineer ReseNe unts, affiliated Army Cadet units, Royal Engineer officers and soldiers serving in non-Royal Engineer units. The Sapper continues to be wdl received both by units and individuals, induding fomier members of the Corps and Royal Engineers Assoaation branches, who make a donation, The Sapper provides a focal point in publicising the Corps. activities and in engendering esprit de corps. The Sapper magazine has been remodelled and is now a hybrid, print and digital, publication. The Sapper magazine now sits within the Corps Communications Hub and enhan￿S the Corps. opportunities to deliver consolidated messaging across both social media and print. Supportlng Corps Sports Clubs Trustees approved finanaal grants suppOr￿ng more than 5,000 personnel (serving and veteran) through 34 sports associations, unions. and clubs. The charity also made grdnts totalling £65,000 in support of the annual Sapper Games, hosted by 39 Engineer Regiment in lfjnloss. Sapper Games 2024 attracted 1.500 competitors to take part in 27 sports & Highland Games as well as highlighting wellbeing and mindfulness. Trustees have already appmved financial support to Sapper Games 2025 being hosted by 35 Engineer Regiment (EOD&S) in Wimbish. Optlmlslng Income from the Days Pay Scheme (DPS) Sinca 1 April 2007. DPS subscriptions have been collected by a Payroll Gpiing scheme vla the Joint Personnel and Administration (Centre). On 1 April 2007 officers, subscriptions, including an element for their membership of the Institution of Royal Engineers and the Royal Engineers. Association. increased from 150% to 160% of a day's assessable pay per annum. Officers also make a voluntary subscription of 70% of a day's assessable pay to the Royal Engineers Headquarter Mess. Soldiers. subscriptions increased from 100% to 110%. Warrant Officers, and Senior Non-commissioned Officers, elected to increase their subscriptions from 110% to 1150h in August 2010. The 5% increase being used to set up a new designated fund for their use. In 2012 serving soldier subscripts'ons were increased to 120% and 125%. Reserves officers and soldiers have been able to make annual contributions (12%) via JPA since 2015 which. Since 1 October 2023. has been increased to 20%. Royal Engineers Central Charftable Trust Trustees, Report For the year ended 31 December 20241conllnued) Generallng Income & Growth from Investments Investments dellvered dividends of £326,923 in 2024 (2023: £333,068). During the pariad 1 January to 31 December 2024, the performance of the distribution units in the fund was +8.1% (2023.. +4.3%) after fees and expenses. Since launch in September 2002. the fund has produced a retum of +338.27% cumulative, +8.8% annual (2023.. +305.5% cumulative, +6.8% annual). The fund's benchmark since inception has retumed +400.0% cumulative and 7.5% annual. Detsils of the Corps Investment Powers, Houge and Policy are contained In the Financial Revlew of thls report. In 2019, the Charfty realised investrnent units and purchased two house8 in a local development (previously the site of a Royal Engineers barracks). The rationale being to diversify during a dtfficult market period whilst generating an additional funding stream, through rentsl income. Both houses are occupied and generated rental Income of £25,546 in 2024 (2023: £25,356). This 4.3% yield is in line wth RECCT Trustee direction. The charity completed Its purchase of a third propety (in the Ebbsfleet Garden City devebpment) In Q1 of 2022 which has, Sn 2024, generated rental Income of £24,350 {8 5.2% yleld). Trustees agreed the purchase of a fourth (and final) propety in December 20241 whilst remaining cognisant of the changes in the propety market. ANCIAL REVI Summary The consolldated account generated net expendlture for the charity, before other recognlsed galns and1088es. of £73,931 (2023.. net expendlture of £95,239). The accumulated funds of the Charty increased by £311.886 lo £10,474,038 (2023: decraas8d by £7,426 to £10.162,352). The consolidated funds increased by £300,365 to £10,486,420 (2023 decreased by £8,876 to £10,186,055). Balance Shoot Note8 to the Statement of Flnanclal Actlvltl83 and Balance Sheet provkle supplementary Infcrniatlon agaln8t each funding activlty. Investment Pow•rn The Trust Deed provideg fijll and unrestdcted powers of Investment to the Trustees, who sub-deleg8te Investrnent decisions to a professlonal Investment House, wlthln the parameters of overall guidance by the Tru8tee8. Investment Hou8e & Pollcy RECCT invests in the Amied Forces Charitie8 Growth & Income Fund. managed by BlackRock. The aim of the Fund is to provlde a retum on investment (net of fees) over a period of 5 or more consecutive years beglnning at the point of investment. generated through an Inc￿aSe to the value of the assets held by the Fund andlor Income received from those assets. Further investment deta118 are glven In the notes to the financial statements. No addltional Investment units were purchased In 2024. Investment Manag•rfs Fund Commentary This year has been one of trans5tion for 81ackRock's Armed Forces Charftles Growth & Income Fund, marked by a shift to a global benchmark to capture the broader global opportunity set, and a shift to a total retum approach to ensure the long-tem security of dividends. We are pleased to see that these changes are already having an increasingly positive effect on the Fund's performance, and we have high conviction in the positioning of the portfolio as we head into 2025. Vvhilst we are disappointed that the Fund undarperformed the benchmark over the course of 2024, the Fund delivered strong absolute returns as well as conts'nued to grow Its distribution. In addition. changing the benchmark at the stsrt of the year has been key to improved perfomiance versus peers; already the new benchmark has significantly outperformed the old one. 1 Contracts exchanged and completed 16 Feb 25. Royal Englneern Central Charltable Trust Trustees, Report For the year ended 31 December 2024 (continued) More broadly, we continue to take a lon*term view *then managing the Amied Forces Charities Growth & Income FurKI. Mfith this in mind. whilst the fund's underperfomiance over the short term 15 disappointing arKI we have taken steps to address tIMs. wr ranains on safeguarding against permanent losses in capital. do this ty: Being diversified across asset dasses. sect(n. and geographies. We will strive to maintain this diverssfication even as benchmarks become ever more concentrated: Utilizing undertying managers who cary (xrt th¢)rough due diligence and seek to identify companies that have strong balance sheets. competitsve advantages. and management teams with a proven track record: • A strory foojs on risk managem￿1 and downside protection We were able to maintain Lwr If￿ distribution policy over the course of the year. providing unitholders with a stable and growing income distribution. ￿ increased the distributs'on in Q12024 to 2.25 pence per unit (ppu) and held it constant throughout the year. The Fund will distn'bute 2.25 ppu for the Q4 2024 distribution (received in January) which would represent 9.0 ppu paid out in 2024. a 5.3% increase in the distribution year-on-year. Our policy going forvrdrd, market pwmitting, is to increase the distrilyjts'on in respect of the first quarter of every year (in other words, ￿ distribuli¢n paid in Awil) and to then hold it constant for Ihe remaindw of the year. Investment Envlronmenl Soclal. and Corporate Governance (ESG) The BlackRock Amied Forces Grchvih & Income Fund actively seeks out investm8nts they believe are well aligned to the increasing preference for charities to invest in environmentally sustainable companies. These thematic investrnents not only provtde diversification to the Fund but also ensure that clienl's capttal is being used to drive positive change. An example of this within the Fund is the investrnents in renebwdble energy and energy efficiency exposures. 81ackRod( Id￿tified renewable energy as a sector that needed capital back in 2013 and vthich presented a good investment opp¢)rtunty as well as driving positive environment change. They have also identified energy efficiency as a sector vthich requires capital in order to help retrofit heating systems in buildings and provide solutions to enwgy waste, somethirvJ that will be key to achieving net-zero commitments by 2050. More recentty they have allocated to battery storage technology to help address the intermittency issues associated renewables. in order to facilitate their continued roll-out. ere BlackRod( do hdd oil arKI mining mpanies. Ihey do so selectivdy Imth those companies that hava clear and credible plarts for a trar￿llion to net zero. induding investment in rene￿ble energy prqects and associated technology. A￿elerating ts transrtion to net-zero is critical and will required signiknnt investment in ￿neWableS. however. in the intetim the worfd will continue to require fossil fuels to prevent a disorderfy transition and the soaal implicattons that will have. BlackRock are committed to holding companies to account on issues such as dimate change and they leverage their position as a major slmreholder to encourage positi've environmental and sa(xetal change on behdf of their dienls. ReseNes Pollcy The account posts net expenclture of £73.931 {2023: net expenditure of £95,239) before realised and unrealTsed gains. Gains on investrnents amounted to £347,393 (2023: losses of £534), and losses on revaluations of fixed assets were £5,707 (2023: £86.89n gmng a posibve net movement in funds of £300,365 (2023: negative net rnov￿nent of £8.876). Tnjstees review the reserves poltcy and investrnents durirvJ annual budgetary cyde. The Charity is heavi￿ dependent on cuffent members of the Corps supporting the Dtys Pay Giving Scheme (c30% of total income). Any major change in the structure or strength of Ihe Corps could irnpa￿ the levels of future support available to the Sapper Family. The charity rdies upon the MOD for administration of the Day's Pay Giving Scheme. provision of infrastructure. utilities. a proportton of staff costs. If these MOD donated servic8s were to be withdrawn. the tharity would suffer an operational shock. The charitys reserves must be able to meet such a shock if it were to occur. V￿th high inlati(Jn and deposit rates very low. this year has again highlighted the need to consider ways to mitigate the impact of price and salary increases (wage inflakn'on) on our lon*temi obj'ectives. The perfomance of the CharilYs irniestrnent putfolio is subject to global market movements and, while the present value of the porffdio prodU￿S (generally) 31YA of total required income, the value andlor dividend irmme can flucluate, potentially markedly, due to market volatility. The aim of our ReseNes is to ensure the charity thrives and survives. Royal Englneers Central Charltable Trust Trustses, Report For the year ended 31 December 2024 Iconljnued) To mitigate the identified financial risks, adequate reseNes are required to meet the Charity's objectives. Reserves should be able to meet potential operational shocks and increases in demands whilst also enabling Trustees to deliver on the Charity's objects. The Chanty's commltment Is to support the Sapper Famlly now and particularly in the future. Therefore, Trustees have assessed the level of reserves and related investments required to meet thwJe contingencies and to mitigate against the current risk profile. to be in the range of £10 million. Lastly. high inflation means cash could be losing its value in ￿81 terms, so cash reseNes are being Invested. Current unrestricted reserves are £10,486,420 of vthich £39,549 is shop stock (2023.. £10,186,055 of which £55,173 wa5 shop stock) which Trustees conslder Is consistent ￿th thts pollcy. £54,555 of our unrestrfcted reserves are designated funds. Grant Maklng Pollcy Trustees Invlte appli&*ion8 from network charftte8 and organi8ation8, exiernal establlshments wlth a past or extant connection to the Corps and from individual8 who subscribe to the Days, Pay Scheme who embark on major sportlng or challenglng pursuits. Details of how to apply for routine or annual grants are communicated In writing to neiwork Charities and organisations, briefings to new subscribers or by telephone to the Corps Treasurer. Details of grants made In 2024 are covered under Achievements and PerfonTrance. Romuneratlon Pollcy Prlvately employed personnel worklng for the RECCT have thelr 8alarle8 authori8ed by the appropriate charty committee, agreed by means of an Indlvldual employment contract, and are pald from the appropriate charity fund. As far as possible, salary scales are to be linked to the Civil Servlce pay system wlth staff placed on the Init181 'starters rate. salary for the agreed Civ51 Servlce pay band (this to be expressed in their contract of employment). Payment Is made through a registered PAYE payroll via the respectlve charity. Corps Colonel RE Is responsible to Tru8tees for ensurlng parfty where approprfate. In Ilne wlth extant Civil Service policy, the charities operate an In-year reward scheme for exceptional perfomiance with Corps Colonel RE 88 the arblter for the Scheme to ensure parity acro88 all charitie8. Truste88 are not pald by the charlty for thelr servlce8 a8 Trustee but are reimbur8ed for expense8 Incurred during perfomance of thelr duties. In accordance with the Trustee's agreed policy. Equallty. Dlv•r81ty & Inclu81on Our female beneficlarie8 make up approxlmately 3% of the servlng Corp8 01 Royal Engineer8 (10% are officer8 and 2% 801dier8) with the Amiy as a whole being 11.7% female (as at 1 April 2024). Reporting In Ilne wlth the UK Equality Act 2010 (Gender Pay Gap Infomatlon) Regulation8 2017.. 83% of RECCT staff are female and 37% male. There is no pay gap between male and female staff who carry out the same Job, slmllar Jobs. or work of equal value and there is no ethnicty pay gap. The Corps of Royal Engineers, like the rest of the Amiy, is proud to be ethnlcalty dlverse and Incluslve. Lastly, 25% ot RECCT emplayees are veterans or veteran's spouses. PLANS F IODS The RECCT plans to: Contlnue to develop the RECCT short, medium, and long-term financial planning and forecasting. Continue to maintain the RE Private Pension Plan, in line with Auto Enrolment legislation. Monitor. review and refine the RE Days Pay Scheme. Assist Royal Engineer units with fund$ to purthase portraits of Thelr Majesues Klng Charles111 and Queen Camilla. 8UMMARY The Trustees rernain confident of their ability to continue to meet the Obj'ects of the Charty in the firture. INDEPENDENT AUDITORS Kreston Reeves LLP remained the Trustees, choice as chaiity auditor. Royal Engineers Central Charitable Trust Trustees, Report For the year ended 31 December 2024 (continued) STRUCTURE GOVERNANCE AND MANAGEMENT Trust Deed The Royal Engineers Central Charitable Trust (RECCT, Charity number 10030321 Trust Deed dated 14 March 1991 was made by the Members of the Chief Royal Engineer's Committee (the Original Trustees). The Trust Deed allowed the Original Trustees to remain as Trustees whilst they continued to serve on the Chief Royal Engineer's Committee. The Original Trustees have been superseded by new Members of the Chief Royal Engineer's Board, all of whom have indicated their willingness and eligibility to serve as Trustees In 2025, the Trust deed will be revised to reflect the new structure of the Board ofTrustees and Finance Committee. Background The RECCT combined and superseded the former funds called the 'Royal Engineers Officers, Charitable Fund, and the 'Royal Engineers General Charitable Purposes Fund,. These fund5 were classified as excepted from registration as charities under the provisions of Slatulory Instrument 1965 No.1056 being charities "wholly or mainly concerned with the promotion of Ihe efficiency of any of the amied forces of Ihe Crown.... Due lo the increasing size of their assets and on advice sought from the Charity Commission, action was taken to draw up a Deed of Trust and to have the RECCT formally registered as a Charity. ORDERS AND RESOLUTIONS Based on subsequent resolutions made by the Trustees, the Charity Commissioners have approved.. Investment An Order providing the Trustees power to appoint an investment manager and to delegate to himlher discrelionary powers in relation to the Charity's investments. Indemnity An order from the Charity Commission aulhorising the Trustees to provide indemnity insurance for themselves out of the charity funds was issued on 15 September 2001. ORGANISATION Chief Royal Engineer's Board (RE Central Charitable Trust) RE Finance Committee RE Corps: .} Enerprises Ltd The Sapper Shop RE Investment Committee RE Sports & Entertainments Board Nol8 l.. RE Investment Con7millee donnant (see below). 10 Royal Englneers Central Charltable Trust Trusteeg. Report For the year ended 31 December 2024 {contlnued) At thelr quarterly Trustee meetings members of the Chief Royal Engineerfs Board agree the bnxd strategy and areas of activity for ihe tharty, induding consideration of grant making, investment. reserves. risk management, HRM policies and perfomiance. The Trustees are served by subordinate committees with delegated responsibility for fulfilling their role, each chaired by a Trustee who Is responsible for reporting back to the Chief Royal Enginee¢s Board. The sutKJrdinate committees are.. RE Flnance Commlttee In 2009 Trustees approved Term8 of Reference for the RE Finance Committee which were reviewed In 2017 as part of The Chief Royal Engineerfs governance policy review and again in 2019 as part of the Corps, Quinquennial review. The Committee advises the Trustees on financial policy and the control of funds based on an annual budget system incorporating a fiva-year forecast. RE Investment Commltte• Thls Comm6ttee fulfils a combined responsibility togeiher wlth nomlnated repr88entative Trustees of the connected charities l.e. The Royal Engineers Associatlon, Charity Nos. 258322 and SC041832, The In8titution of Royal Engineers. Charlty No. 249882, and the Royal Engineers Vocational Educational Tralnlng Trust {REVErr). Charity No. 1068709, to lay down a detailed generlc Investment pollcy for the Corp8 Charrties and for infomiing the investment manager of the extent of the Investment power8 for each Charlty and for all other matter8 laid down In the Order for the delagatlon of Investment powers. Since joining the Amied Forces Common Investment Fund {AFCIF) the need for regular commlttee meetings dlmlnlshed. It Is stlll considered approprlate to remain in the AFCIF (now a CAIF) with future meetlngs belng held at the dlscretlon of the Chalr or a convlncing request by a committee member. RE Sportg and Games and Entortalnments Board Responslble for vetting and recommendlng to Trustees. via the RE Flnance Commlttee, the level of annu81 grant appropriate to recognised Corp8 Sports, Games, and other challenging pursuits. Responsible for the annual review and allocatlon of funds from the Corp8 entertaSnment and esprit de corps budgets arKI for making grant recommendations to Trustees, via the Corps Finance Committee. Re8ponslble for draftlng relevant pollcy (sponsorship etc) for approval by the RE Flnance Commlttee. RHQ RE Day to day admlnistratlon of the RECCT18 ve8ted in RHQ RE. Grant applicatlon8 are proc888ed to the relevant sub-committee by the Corps Treasurer who adminlsters and accounts for approved grants. TRUSTEES The Trustees who served during the year are detailed on page 2. Trustees (part of Chief Royal Engineer's Board) held fornial meetings in February, July, October. and December 2024. In July they approved the 2023 Statement of Financial Affairs and in December reviewed their 2024 expenditura prior to aulhorising annual budgets for 2025. The Corps Finance Commlttee met In June and October. Appolntment of TrustO08 New Trustees a￿ Invited to hold Offi￿ after discussion by the appropriate committee and at the personal invitats'on of the Chief Royal Engineer or his nominated rep￿sentatiVe. As part of their induction process each Trustee is provided with a copy of the Trust Deed, a copy of the Charlty Commission leaflet explalnlng the responsibillties of Trustees, a locally produced Trustee Handbook and copies of the Charity's fraud policy, conflict of interest policy, whlstleblowing pollcy, and access to prevlous audrted accounts. Each Trustee signs a certificate to confirm their eligibility and willingness to act as a Trustee. In 2024 new Trustees attended formal Charity Trustee Trainlng Programmes {run vlrtually) and several exlstlng Trustees undertook refresher tralnlng. People with Significant Control (PSC) and all Confflicts of Interest (actual or perceived) are recorded in registers hejd and maintained by the Corps Treasurer. 11 Royal Engln•ers Central Charltable Trust Trustee¥. Report For the year énded 31 Decernber 2024 (contlnuedl NETWORK CHARITIES THE ROYAL ENGINEERS ASSOCIATION The responsibilty for undertaking all benevolence on behalf of the Cups is vested in the Royal Engineers Association (REA). In addition to using their accrued trust funds, investment income and occasional legacies for benevolence purposes, the REA, receive 50% of the Daws Pay Scheme income received by the RECCT for charitable purposes. A separate Trustees, annual report is prepared by the REA togethw with the Charitys financial statements, Charity Nos. 258332 and SC041832. THE INSTITUTION OF ROYAL ENGINEERS The Obj'ects of the Instituti¢M of Royal Engineers, as set out in its Royal Charter arKI Bye-Laws. are to promote and advance the science of military engineering and to promote military efficiency and particularly the milttary effiaency of the Corps of Royal Engineers. In addition to using their accnjed trust fijnds and investment income for this purpose, the Trustees of the Institution. ￿lch roulinely indudes members of the Chief Royal Engineers Board. receive 71.5% of the income drawn down from serving officer contributions (gathered via payroll gniing). and since 2012. received payroll giving scheme ¢￿trIbutIOnS from seNing WOS & SNCOS (5%) and Junior Ranks (5%). A swarate Trustees. Annual Rewl is prepared by Institution of Royal Engineers together with the Charity's fmanaal slatemerts, Charity No. 249882. THE ROYAL ENGINEERS MUSEUM (REM) Overall controt of the Royal Engineers Museum (REM) is vested in the Trustees of the Institution of Royal Engineers. Financial support tthvards the running o)sts of the Museum is provided by The Institution of Royal Engineers and the RECCT. Financial control of the Museum is delegated to the Royal Engineers Museum Committee which draws up an annual budget against planned adivities tr Trustee approval. A separate Trustees. report is induded vfith the Statement of Finanaal Affairs prepared by the Royal Engineers Museum, Charity No. 295173. In 2024. REM transitioned to a CIO Foundab'on stnthre. TRUST FUNDS OF DISBANDED UNITS AND ESTABUSHMENTS The Trust Deed dated 8 March 1957 was made ty members of the Chief Royal Engineerfs Committee (the original Trustees). The Trustees operate urKler the tern￿ of a Scheme approved and established on 8 March 1957 for the regulation of the Trust Funds of Disbanded Unts armd Establishments {DUTF) of the Corps of Royal Engineers"Central Charilies. comprising: Officers, Mess Funds., Warrant Offi(xrs' and Sergeants, Mess Furth. and Presidenl of the Regimental Institute (PRI) Funds On 13 De¢￿ber 2007, ihe Trustees passed a resolutton, subsequenuy supported by the Charity COMMI￿On. to transfer the remawiing assets in each fund to a restricted fund %Mthin RECCT. The last separate Trustees, report and statement of financial affairs for ts DlJfF was issued by the Chief Royal Engineers Committee in 2007. The final funds from the DUTF were expended in 2023 in support of a Corps-wide (Regular & Reserve) Ylag refresh, programme although the fvnd w￿1 remain open lo receive any subsequent income from disbanded RE units. RO AL ENGINEERS NETWO RE HQ Mess In 2023, The Royal Engineers HQ Mess was converted from an Excepted Charity (under the prowsions of the Charities {Excepb"on from Registration arKI Accounts) Regulations 1965 (Statutory Instrument 1965 No.1056)) to a Registe￿ Charity. Charity No 1202413. 12 Royal Engineers Central Charitable Trust Trustees, Report For the year ended 31 December 2024 (continued) RE Establishrnents and Units As well as receiving an annual grant, Royal Engineer establishments and regularlreservelhybrid units are invited to seek and justify additional grants to offset the cost of entertainment Ihat they undertake for the benefit of the Corps as opposed lo the individual establishment or unit The Corps Entertainment Committee review each bid and make grant recommendations to Trustees via the Corps Finance Committee In 2022, to recognise the increased costs involved. the Committee agreed, wth effect from 2023. to increase all entertainments grants by 100h and in 2023 agreed to uplift 2024 allocations by a further 10%. RE Sports Clubs RHQ RE. through the RE Sports Board, has approved thity-four Corps Sports & Games Clubs. Each sport and club are managed by a designated Chair, Manager and Treasurer. Club Chairs are invited to seek and justify financial support for their planned activities each year through the RE Sports and Games Board. RISK MANAGEMENT STATEMENT What could stop us achieving our aims? The Trustees review risks to which the Charity is exposed at each of their meetings. The basis of the review is a Risk Management and Opportunity2 Matrix that identifies and defines the risk, its impact and likelihood. and those mitigation measures the Trustees feel need lo be applied. The Risk Management Matrix is reviewed annually by the RE Finance Committee and Chief Royal Engineerfs Board to satisfy Trustees that appropriate internal controls are in place and remain effective with systems established to mitigate those risks identified. Key Risks The key risks identified to which the charity could be exposed are shown below". Risk Consequence Impact Likelihood l Trend Medium MitigationlPreventative Action Medium Failu￿ lo generate sufficient income lo cover planned I known expendilufe Failure to deliver outputs Failure to meet charitable objects Failure to suslainably finance our Feople Members withdrawing from RE Days Pay Scheme IRE DPSI Loss of credibility and reputation Degradation of existing capitsl l investments Robust financial reserves policy and prudent Investment Monitor Corps manning strength and contributions lo RE DPS (Regular and Reserves) lo identify trends produ￿ accurdle monthly FOOS Link budgets lo business planning and Charitable Objects Promote legacy giving and donations Ensure rnax long-lem occupancy of Corps property portfolio minimi5ing 'void' penods High Medium Significant reduction in Public fundirsg Inability lo deliver Chief Royal Engineerfs mandated oulpuls Corps, charilies fOr￿d to fund additional staff costs Inability lo preserve and maintain Regimental Mlentity and resilience Over-reliance on Colonels Commandant Improve financial planning and forecasting Promote sponsorship for saP￿r Sport Monitor financial reserves policy Continue lo promote RE Reserves Days Pay Scheme 2 Risk and opportunity are two sides of the same coin (Yvan Byajeel 13 ## **Royal Engineers Central Charitable Trust** ## **Trustees' Report** ## **For the year ended 31 December 2024 (continued)** ## **Statement of Trustees' responsibilities** **The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).** **The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of its income and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:** - **select suitable accounting policies and apply them consistently;** - **observe the methods and principles of the Charities SORP (FRS 102) (2019);** - **make judgements and accounting estimates that are reasonable and prudent;** - **state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;** - **prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.** **The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Memorandum of Association. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.** **Approved by the Trustees and signed on behalf of the Trustees Colonel RB Hawkins MBE ADC** _!!t!L_ **Trustee** ## **20th June 2025** **14** Royal Englneers Cantral Charltable Trust Independent Auditorfs report to the Trustees of the Royal Englneers Central Charltable Trust We have audited the financial statements of Royal Engineers Central Charitable Trust (the 'parent chaiity) and its subsidiarie5 (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Statement of financial activities. the Consolidated Balance sheec the Consolidated Statement of cash flows and the related notes, Including a summary of 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 applSGable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the state of the group's and parent charity's affairs as at 31 December 2024 and of its income and application of resources for the year then ended., have been properly prepared in accordance with United Kingdom Generalty Accepted Accounting Practice,. and have been prepared in accordance with the requlrements of the Charltles Act 2011. Basls for opinion We conducted our audit in accordance with Intemational Standards on Auditing (UK) (ISAS UK)) and applicable law. Our responsibilities under those standards are further described in the Auditofs sponsibilities for the audit of the financial statements section of our report. We are independent of the chaiity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, induding the Financial Reporting Council'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. Concluslons relatlng to golng concern In auditing the financial statements. V￿ have concluded that the Trustees, use of the going concem basls of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfomied, we have not identified any material uncertainties rdating to events or conditions that. individually or collectively. may cast significant doubt on the charitys ability to continue as going concem for a period of at least Iwelve months from when the finanaal statements are authorised for issue. Our responsibilities and the responsibilities of the Tnjstees with respect to going concern are described in the relevant sections of this reporL Other Informatlon The other infomiation comprises the information included in the Annual report, other than the financial statements and our Auditorfs report thereon. Our opinion on the financial statements does not cover the other infomiati¢)n arKI we do not express any fomi of assurance condu8ion thweon. Our responsibility is to read th8 other infomiation and, in dolng so, conslder whether the other Infomiatlon is materially inconsistent with the financial statement or our knowledge obtained in the audit or otherV￿Se appears to be materially misstated. If we identify such material inconsistencies or apparent maierial misstatements. we are required to deterniine whether there is a material misstaternent in the financial statements or a material misstatement of the other infomiation. If, based on the work we have perfomied, we conclude that there is a material misstatement of this other infonnation. we are required to report the facL We have nothing to report in this regard. 15 Royal Englneers Central Charltable Trust IndependentAudltorfs report to the Twstses of the Royal Englneers Central Charitable Trust (continued) Mattern on whlch we are requlred to report by exceptlon We have nothing to report in respect of the fdlowlng matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion.. the infomiation given in Ihe Trustees, report is inconsistent in any material respect with the financial statements,. or sufficient accounting records have not been kept. or the financial statements are not in agreement the accounting records and retums; or we have not received all the inforniation and explanatlons we require for our audit. Respectlve rnsponslbllltles of Trustees and audltor As explained more fully in the Trustees, responsibilities statement, the Trustees are responsible for the preparation of financial Statements which give a true and fair view. and for such intemal control as the Trustees detemiine is necessary to enable the preparation of the financial statements that are free from material mlsstatement, whether due to fraud or error. In preparlng the finanaal statements, the Trustees are responsible for assessing the charity's abilty to continue as a going concern, disdosing, as applicable, matters related to going concem and using the going concem basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations, or have no realistic altemative but to do so. Audttofs r•sponsibilrtles for the audit of the financial ststsments We hava been appointed as auditor under section 144 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 Auditorfs report that indudes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit cornlucted in accordance with ISA'S (UIQ wll always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material rf, individually or in the aggregate, they could reasonably be expected to influence economic decisions of users taken on the basis of these financial statements. Irregularities, indudlng fraud, are instances of n¢)n-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, induding fraud is detailed below.. Capability of the audit in detecting i￿guIsn't184 including fraud The objectives of our audit are to ￿entIfy and assess the risks of materlal misstatement of the financial ststements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error. and to respond appropriately to those risks. Based on our understanding of the charity and sector, and through discussion with the directors and other management (as required by auditing standards), we identified that the principal risks of non-complian￿ with laws and regulations related to health and safety. anti-bribery, and employment law. We considered the exient to which non-compliance might have a material effect on the financial statements. We also constdered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and the Statement of Recommended Practi￿. We communicated identffied laws and regulations throughout our téam and remained alert to any indications of non-compliance throughout the aLKlit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of ovefride of controls). Audit wocedures perfomied by the audit engagement team induded: Discussions with management and assessment of known or suspected instances of non-compllance with laws and regulations (induding health and safety) and fraud: and Assessment of identified fraud risk factors; and Review of cash expenditure to confirm no evidence of personal benéfi( and 16 Royal Englneers Central Charltable Trust Independent Audltofs report tothe Trustees of the Royal Englneers Central Charltable Trust Icontlnued) Challenging assumptions arttl Judgerne￿ made by management in lis significant accounting estimates., and Perfomiing analytical procedures to identify ary unusual or unexpected relationships, induding related party transactions. that may indicate risks of malerial misstatement due to fraud: and Confimiation of ￿lated part"]es wth Managern￿L and review of transadions thrOUgh￿t the period to identify any previously undisdosed transactions related parties outside the normal counse of business; and Perfomiing analylical procedures th automated data anatyttcs tools to identify any unusual or unexpected relats'onships, includuw related party transactions, that may indicate risks of material misstatement due to fraud: and Reading minutes of meetings of those tharged with govemance: and Physical inspection of tangible assets susceptible to fraud or irregularity; and Review of significant and unusual transactions" and 1dents'￿.ng and testing joumal enlrTes. in particyjlar ary manual entries made at the year-end for finan¢ial slatement sYep&atiM. There are inherent limitations in the a￿111 procedures ¢Je8cribed above and the further removed non- compliance ￿ryth laws and regulations is frrm the events arKI transactions reflected in the financial statements. the less likely VR y￿uld become awdre of it. Also, the risk of not deteciing a material misstatement due to fraud is higher tIHn the risk of not detecting one resulting from error. as fraud may involve deliberate concealment by. for example, forgery or intentional misrewesenlations. ¢x throLW collusion. As part of an audit in accordance Imth ISAS (UK). we exercise professional JUdgem￿l and malntain professional $￿p￿.C1SM throughout the audit. We also: Identify and assess the risks of material misstalement of the financial statements, whether due to fraud or error. design arKI perforni audTt procedures responsive to those risks. arKI obtain audit evidence that is sufficient and appropriate to provide a basis for our opinton. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion. forgery, intentional omissions, misrepresentations. or the override of intemal control. Obtsin an understanding of intemal controls retevant to the audit in order to design audrt procedures that are appropriate in the arcumstances, but ￿t for the purpose of expressing an opinion of the effectiveness of the charitys intemal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounling estimates and related disdosures made by the Trustees. Conclude on the appropriateness of ￿ Trustees. use of ￿ going concem basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast signbficant doubt on the charitys abilty to continue as a going concern. If we condude that a material uncertainty exists, we are required to draw attention in my AUdit0￿S report to the related disclosures in the ffinancial slatements or, rf such disclosures are inadequate, to modrfy our opinion. Our condusions are based on Ihe audit eviden￿ obtained up to the date of ry Audrtofs report H<)wever, future evertts or conditions may cause the charity to cease to continue as a going C￿cern. Evaluate the overall presentstion, struclwe and content of the financial statements, induding the disclosures. and wrether financial ststements represent the ￿derlYIng transactions and events in a manner that achieves fair presentation. We communicate vAth those charged with governan￿ regarding, among other matters. the planned scope and timing of the audit and significant audit findings. induding any significant deficiencies in intemal control that v identfy during our autht. 17 Royal Engineers Central Charltable Trnsl Independent Audltofs report to the Tft￿tee$ of the Royal Englneern Central Charltable Trust (contlnued) Use ofour rnport This report is made solety to the chanty's Trustees. as a body. in accordance %Mlh Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been urtdertaken so that might state to the charivs Trustees those matters we are ￿qUired to state to them in an Auditors report and for no other purpose To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than charity and its Truslees, as a body, for our audit work. for this report. or for the opinlons we have Samantha Rouse FCCA DChA for and on behalf of Kreston Reeves LLP Chartered Accountants Statutory Auditor Chatham Maritime Date.. 20 June 2025 Kreston Reeves LLP are eligible to acl a8 audrtor8 in iemi8 of Section 1212 of the Companles Act 2006. 18 Royal Engirteèrs Cèntral Charltable Tntst Congolldatsd gtatem6nt of flnancial actlvltleg For the vear ended 310ecember 2024 Unrestrlcted Restrlctod funds funds 2024 Tot•1 lunds 20 Total fvn¢Js 2023 In¢om• and Irom: Oonatlons and legacle• Other tr8ding actiwt(88 Investment income Charitable activiUe8 851,469 199,352 381,571 4,200 851,469 199.352 381,571 4,200 784,593 251,581 383,501 10 Total Income Expondltui• on: Ralslng fvnd• Cha￿18010 actfvlU88 206,380 1,304,143 208,380 1,304,143 248,256 1.250,858 11 Tota(8yndltUM 1510623 1499 114 Ngt Incomel{expendlture) beloTe Ing and lo￿0* on Inve•tmonl• (73,931) (73,9311 {95,239) Net Galn on investments Net galn8 on ravaluations of tangib flxed 8688ts 347,393 28,803 347,393 26,903 (534) 86,897 Net MO￿￿•￿t In fund• for Iho yoar 300,365 300,365 (8,876) Total furth at 1 January 2024 10,186,056 10,186,055 10,194.931 Total fund• al 31 Decembor 2024 10486420 10 186055 The gtatemenl ol finandal actfvitlos incluth all galni and lows In the year Ail actlvlkn r8lat8 to Conlinulng pperallonj. Tho noth on p8oa8 23 to 38 fomi pArt at thaaa finondal •tatem8nts. 19 ## **Royal Engineers Central Charitable Trust** ## **Consolidated balance sheet** For **the year** ended **31 December 2024 Charity Number: 1003032** **----- Start of picture text -----**
2024 2023
Note £ £ £
Fixed assets
Tangible assets 23 211,115 213,129
Investments 24 7,825,425 7,978,032
Investment properties 1,316,000 1,295,000
9,352,540 9,486,161
Current assets
Stocks 26 39,549 55,173
Debtors 27 247,290 129,470
Cash at bank and in hand 887,772 576,550
1,174,611 761,192
Creditors: amounts falling due within one
28 (40,731) (61,299)
year
Net current assets 1,133,880 699,894
Net assets 10,486,420 10,186,055
Charity Funds
Unrestricted funds 29 10,486,420 10,186,055
Total funds 10,486,420 10,186,055
25
**----- End of picture text -----**
The financial statements were approved by the Trustees on 20 June 2025 and signed on their behalf, by: **Major General R J Semple Colonel R B Hawkins MBE ADC Trustee Trustee** The notes on pages 23 to 38 form part of these financial statements. 20 ## Royal Engineers Central Charitable Trust Consolidated balance sheet For the year ended 31 December 2024 Charity Number: 1003032 |Consolidated balance sheet
For the year ended 31 December 2024
Charity Number: 1003032|||||| |---|---|---|---|---|---| ||||**2024**||2023| ||**Note**|**£**|**£**|£|£| |Fixed assets|||||| |Tangible assets|23||**211,115**||213,129| |Investments|24||**7,825,425**||7,978,032| |Investment properties|25||**1,316,000**||1,295,000| ||||**9,352,540**||9,486,161| |Current assets|||||| |Debtors|27|**271,468**||158,920|| |Cash at bank and in hand||**883,922**||562,133|| |||**1,155,390**||721,052|| |Creditors: amounts falling due within one
year|28|**(33,892)**||(44,861)|| |Net current assets|||**1,121,498**||676,191| |Net assets|||**10,474,038**||10,162,352| |Charity Funds|||||| |Restricted funds|||||| |Unrestricted funds|||**10,474,038**||10,162,352| |Total funds|||**10,474,038**||10,162,352| tees on 20 June 2025 and signed on their behalf, by: Colonel R B Hawkins MBE ADC tf!L Trustee The notes on pages 23 to 37 form part of these financial statements. 21 Royal Enginoer8 Central Charitable Tnrnt Consolldated Statement of Cash Flows For the year ended 31 December 2024 2024 2023 Net cash used In oporntlng actlv11188 33 1374,711 Cash flows from investlng acllvit•es Interest and dividerKIs 381A71 383.501 Investment Disposal 880,000 CaBh provided ty inve8tlng actfvitles 881.571 1,263.501 Cash used In financlng activltles Increasel(OecTrase) in cash and cash equivalents in the year 99.313 Cash and cash equivalents at the beginning of ts year 576,550 675.863 Total cash and cash oqulvalents at the end of the year 887,772 576.550 Analysis of changes In net debt At1Jan At 31 Dec 2024 Cash and cash equivalen15 Cash Royal Englneers Central Charltal)le Trust Nots8 to the flnanclal statoments For the year ended 31 December 2024 1 General admlnlstratlve Informatlon Royal Engineers Central Charitable Trust is an unincorporated charity in England & Wales wilh the registrats'on number 1003032. The address of the registered office is Headquarters Royal Engineers, 8rompton Barrad(s, Chatham, Kent, ME4 4UG. The Charitys principal objectives continued to be.. to promote the ef￿'encY of the Amied Forces and in particular The Corps of Royal Engineers: to pr￿￿Ole the actNities of the Royal Engineers Association and the Institution of Royal Engineers. as laid dovm in their respeth've Charters: to foster an esprit de corps in the Royal Engineers: and to relieve either generalty or individually necessitous persons belng members or fomier members of the Royal Engineefs or the dependants of such per80n8. 2 Accountlng pollcl•• 2.1 Basls of prnparatlon of flnanclal stat•m•nts The financlal statements have been prepared in accordance ¥Mth Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charitles preparlng thelr accounts in accordance Imth the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). Royal Engineers Central Charitable Tnjst meets the definltton of a publlc beneflt entlty under FRS 102. Asset8 and liabilitie8 are Inltially recognised at historical cost or transaction value unless otherwlse stated In the relevant accouniry policy nolels). The financial statements arn presented In UK sterting. vthich is the Charws finandal cuffenry, and rounded to the nearest pound. No separate SOFA has been presented for charity alorm. 2.2 Preparatlon of th• accoun1• on a golng Con￿rn ba818 The Trustees assess whether the use of going concem 18 appropriate, i.e.. whether there are any material uncertainties related to events or conditions that may cast sign5ficant doubt on the ablllty of the Charity to continue as a going concem. The Trustees make this assessment in respect of a period of at least one ￿ar from the date of authorisation for issue of the financlal 8tatsment$ and have conduded that Ihe Charity has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertsinties about the Charitvs ability10 continue 89 a going corKem, thus they continue to adopt the going concem basis of accounts'ng in preparing the financial statements. 2.3 Fund accountlng The Charity m•ntains the folknvirKJ tw of funds: Designated funds represent amounts vknlch have been aside out of unrestricted fvrKls at i discretion of the Trustees to meet speofic purposes. General unrestricted furKls represent unrestricted funds which are expthxlable at the discretion of the Trustees in the furtherance of the objects of the Trust. Such funds may be held in order to finance both I￿rking capitsl and caiytal investrnenL Restricied furKI for DirrF. vknich operates under a separate Trusl Deed dated 8 Marth 1957. 2.4 Turnover Tumover is recognised wlKgn counter goods fr¢MI either the sh¢)p or foyer trading are sold or dispatched aThJ invoiced to customers via the companvs mail order 8eThice. 23 Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-movlng stocks. Cost includes all dtrect costs and an appropriate proportion of fixed and variable overheads. 23 Royal Englneern Central Charttable Trust Nots8 to the financhal statements For the year ended 31 December 2024 2 Accountlng polkles (contInu￿) 2.5 Bas18 of consolldatlon The financ4al statements consolidate the accounts ol Royal Engineers Central Charitable Trust and its subsidiary undertaking. 2.6 Income All income is recognise(l ontx the chaiity has entiknent to the income, it is probable that the income will be re￿Ived and the amount of income receivable can be measured reliably. For legacies. entitlement is taken ag the earfier of the date on *thi¢h either. the tharity is awaffj that probate has been granted. the estate has been finalised and notification has been ma(le by the executor(s) lo the Trust that a di8tribution will be made, or vthen a distribution is received frorn the estate. Receipt of a legacy. in *thole or in part. 18 only ctsnsKlered probable the amount can be measured reliably and the charity has been notiffied of the executorfs intenb'on to make a distribution. Where legacies have been nolif*d to the charity, or the tharity is aware of the granting of probale, and t crileria for income recognrknon have not been rnet then the treated as a contingont 08get and di8c108ed if material. The cost of donated 8eMces is induded in income at 8 valuatlon whith 18 an estlrnate of the flnancla] ￿11 bome by the donor ¥vhern 8uch a cost 18 quants'fiable and measurable, This amount is matched by donated expenditur•. •pportioned ag•in8t ¢haritable aclivilm and support. 2.7 Expendltur• Llabllltles are rec4)gnlsed as resources as soon as there is an obligation to committing the charity ts the expenditu￿. All expenditure ts accounted lor on an a(yJuob ba$i$. Grants payable to thSrd partles In the furthernnce olth• charitable obJ'eth88 of the Trust are always authorised by the Trustse8. 2.8 Tanglble flxed assets and deprnclatlon All assets $3)•tirvJ mor• Ihan £1,000 •rn ¢apita118ed. Tangibl• fixed auels arn slaled at Coat or ¥a￿allOn ￿ depreciatKm. DeprnO8ti￿ is provided al rate8 calculated lo *nte off the cost or valuation of fixed as8ets.loss ih•lr estimated le8￿Ual value, over their eypecled useful lives on the folltrkning bagis: Fixiur•s and ffttings General Propety Computers 10% straight line 10% straight line 20% straight line 2.9 Investment prop•rtles In¥estmenl properties arn being lonyemi assets. *thich generate inMme. The are included at mathet value in acxordance wth the Statefflent of Recommended Practice on accounting by tharitw. Please lee note 26 lo the financial ststemen 2.10 Inv08tmonts Investments hekl as fixed assets are Ind￿lad in the acojunts at valuation based on their bid price at the balance sheet date. The statement of financial indwk• the r￿t gains and l(tsses arislng on revaluations and disposals Ihroughout the year. 24 Stocks are valued at the lower of cost and net realisable value after making due aUowarrA for obsolete and slaw-rnoving stod(8. Cost Indudes all direct costs and an appropriate proportlon of fixed and variable overheads. 24 Royal Englneern Central Charttable Trust Notes to the flnanclal statements For the year ended 31 December 2024 2 Accountlng pollcles (contlnu•d) 2.11 Stocks Stock8 are Wdlued at the Iw of cost and net realisable value after rna￿￿0 due allovAnc8 for obsolete and sl¢)w4noving sloths. C￿t indudes all direct costs and an approprlaie proporuon of fixed and variable o¥erheadg. 2.12 Debtor8 Trade and other debtorn are recogni¥¢d ai the 8ettlement amount after any trada discount offered. Prepayments •re Valued at the amount prepaid net of any lrnde diwunts due. 2.13 Cash at bank and In hand Cash at bank and in hand indudes cash and short tefm hwJNyI￿UK1 In￿Stynen18 a short maturlty of three month8 or le88 IrrKn the date of acquiwbon or opening of the deposit or similar atxount. 2.14 U•bllltles and provl•lons Liabiliti08 are rec4)gni8ed when there 18 an obl¥ation at the Balance sheet date a8 a rn8uIt of a pa8t event. it is probable that a transfer ol economic benefft will be required in Sett￿rnent, and the amount of the settlement can be e8tirnated reliabty. Liabilities are recognised at the amount that the charity anlicipales it *ill pay to settle the debt or the amount it has received as advan¢xd payments for thè good8 or geNiceg it mu8t provide. Provisions are rr*a¥ured at the best estimate of the amounts requlred to ttle the obligation. Where the effed of the time value of money is rnaterial. the provision 1$ based on the pre8ent value of those amtyjnts. discounted al the prfrtax discount rate Ihat relleclg the rlsk$ speclfic to the Iwbility. The un¥%inding of thè di8count is recognoed Imthin interesl payable and similar charge8. 2.16 Flnanclal In•trum•nts The charity only has financial assets and financaal liabiliiies of a kind Ihat quallfy 43 baslc ftnanclal in8truments. Basic finanaal instruments ar8 initially recognised al transath'on value and subsequently measured at their 8elknent Volue with the exceptkn of bank loan8 which arn 8ubsequontly moa8ured at •morti8e(I cost Using the offecb* interest method. 2.16 Pen8lon• The charity opernle8 a defmed contribution pension Scheme and the pension charge represents the •mounts payable by the charity to the fvnd bn of the year. 2.17 Tonder Polky Trustees have a lender pollcy that covws expenditure: a. Bet￿￿n £2,51JO arKI £5,000 b. Be1¥￿en £5,000 and £10.000 c. (her £10,000 2.18 Taxatlon Royal Engineers Central Char51able TNst is a wistered cjianty ar￿ av￿rdIng1Y no provision is consKlered necessary tr taxalion. 2.19 Crltlcal accountlng 9￿M4￿8 and ar￿ of judgement Estimates and judgemenls are continually evaluated and are based on htstorical experience and other lactors, induding expeclations of fvIU￿ events thal are believed to be reasonable under the arcUmStar￿s. The Charlty does not c#Jrrently have any swnificant accounting estimaies or arèas of judgement. 25 Royal Eng5nears Central Charitable Trust Notes to the financlal statements For the year ended 31 December 2024 Unrestrlcted Rostricted funds funds 2024 2024 Total funds 2024 Total funds 2023 3 Donatlons and legacle8 Subscriptions (Note 4) Donations (Note 5) Donated services and facllitles (Note 6) Government Grants recelvable Legacies 468.333 111.608 271,378 468,333 111.608 271,378 444,796 64,449 255,348 160 160 851,469 851,469 764,593 All Income from Donats'ons and Legacle8 vms unrestrlcted in 2024 and 2023. 4 sU￿crIP11on8 Serving officeryJ' 8ubs¢ripticns Retlred officers, subscdptlons Soldlers, subscriptions Tax refund - Retired Offlcers & Reserves Reseryes DPS WO8, & SNCOS, (5% sub8crlptlon) The Sapper Magazine 87,696 11,291 333,221 1,520 8,602 9,693 16,310 87,696 11,291 333,221 1,520 8,602 9,693 16,310 85,277 11,807 314,282 2,104 5,364 9,009 16,953 468 333 468 333 S Donatlons & Grants General WOS, & Sgts, Sllver Fund Comms Hub Commercial Donatlon ASCB Grant Legacies 3,033 3,676 60,000 3,033 3,575 60,000 1,498 2,410 60,000 541 45,000 150 45,000 111758 111608 6 Donatsd $•rvlces and facllitieB Gas Electricity Water and Se￿3ge Community charge Administration utilities MOD salaries Administration salarles 997 1,168 472 5,915 812 206,606 55,408 997 1,168 472 5,915 812 206,606 55,408 984 1,154 466 5.856 803 194,540 51,545 271378 271378 26 Royal Englneers Contral Charitablo Trust Note8 to the financlal 8tslements For tho yo•r ended 31 December 2024 Unrestrlcted Re•trlctsd fund• fund8 2024 2024 Total funds 2024 Total funds 2023 7 Other tradlng actlvtt108 . RECCT Advarbsamenls MiKellaneous & graphic Sales Proieci Fundlng 2,260 12 2,031 2.250 12 2.031 2,150 333 2.292 8 Othor tradlng actlvltlos - RECE Ltd Incom• RECE Ltd Sales 195 069 196 069 Expondlture C081 of sal88 Staff costs Postage & telephone Pronting & statianery IT cos18 Milcallaneous c?￿net teThln•l ¥¢r4tc¢s Bank charge8 Professional Faes Deprocl8tlon Ingurance Audlt fee Advertising 116,567 60,259 18,101 1,109 3,616 123 4,392 231 104 116.567 60.269 18,101 1,109 3,616 123 4,392 231 11M 155,607 56,556 19.869 2,185 5.841 435 $87 1,696 283 1,898 283 1,342 220 830 208,380 206,380 248,258 All inc(Kne and expendiluro on Iradlng adivili83 was unra8trlcted in 2024 8rKI 2023. 9 Inve•tmont Income Llvklends Uoyds bank interest Kitcher￿r & Ebbsflget Propgrt198 326,923 4,762 328,923 4,762 333,068 537 381571 381 S71 383.501 Income from inv88trnents was £383.571 {2023: £381.501 > of which £383.571 was unreslrthd 12023: £381.501) and £Nil was re$tricted12023'. Nil). 10 I￿orne from ¢harltable a¢tlvlll Burgoyne House All income from charitable activities was unrestricted in 2024 and 2023. 27 Royal Englneers Central Charltable Trust Note8 lo the flnancial statements For the year ended 31 December 2024 Dlrect ¢ost8 Support Costs 2024 Total fund8 2024 Total funds 2024 2023 11 Analy818 of expendlture by actlvltle8 Burgoyne House (Note 12) Sports & Games (Note 13) Heritage (Note 14> Espril de Corps (Note 15) RE HQ Mess (Note 16) Comms Hub (Note 17) WOS, & Sgts, (Note 18) RE Corp8 Enterprlses {Nole 19) Days Pay Scheme (Note 20) 1,984 415,101 50.000 323.756 29.518 244.800 47,696 77,215 60,788 380,195 50.OIXI 235.251 30.911 70,869 84,103 464,298 50,000 327,297 30,911 254,619 33,523 81.736 60.277 91046 183.750 24,079 81,735 60,277 525 989 1304 143 1,250.858 Expenditure on charttable 8Gtlvltles was £1.304,143 (2023.. £1.250,858) of which £1,304.143 wa8 un￿strIcted (2023.. £1,250,858) and £NII was restrtcted (2023: £NII). 12 Burgoyne Hou•e Dlrect ¢08t•: General Malnlenanca Land Renl Gas contract Depreclation 1.065 21 398 1,185 21 371 427 13 Sport8 & Game• Dlrect coBI8'. RE Sports Board Refund sports grant from prevlou6 year 383,242 {3,047) 338,288 (2,995) 380 195 333 273 support co8t•: AudEI Fee Insurance Adminlstratlon IT Support Depreciation Donated seNl¢es support costs Donated servlce8 MOD Salaries Slaff cost8 1,114 405 1,156 1,227 6,100 8,385 21,399 42,042 469 2.041 960 1.246 22,727 415 101 14 Herltage Direct C08ts: RE Museum 50,000 50.000 50.000 28 Royal Englnegr¥ Central Charnablè Tntst Notss to th• financlal statements For the year ended 31 December 2024 Total funds 2024 Total funds 2023 15 Esprit de Cor Dlrect costs: Donations and presentations Other Corps events Corps entertainment Colonels Comdt Clive 8eckett Legacy Senior Soldier Unifom) Grant Regimental Scts'vity Grants Refund of previous years, grnnt 496 71,708 52,2S4 1.091 86,778 121,530 3,286 1,577 18,666 8,187 7,008 101.784 16.186) (6,080) 235 251 226 848 Support co•ts'. Audrt fee Insurance Administration IT Support Depreciation Donated servlces support costs Donated Services MOD Salaries Staff costs 2,727 938 4,082 1,920 2,493 17,896 45,4S3 16,537 2,228 809 3,860 2,454 12,200 16.769 42.799 15.788 327 297 323 755 16 HQ Mess Dlroct costs: Mess Secretary Salary 29 Royal Englneers Central Charftable Trust Nots8 to the flnanclal statements For the year ended 31 December 2024 Total funds 2024 T￿al funds 2023 17 Comm8 Hub Dlrect costs: Printing & distributton Miscellaneous 70,567 302 70A69 70,250 2,669 Support costs: Audtt fee Insuran Administration IT support Depreciation Donated seNices support costs Donated services MOD Salaries Staff costs 1,364 469 1.114 405 2,664 10,370 1.297 8.848 31.126 116,057 8,067 2.931 9,416 33.057 124,793 171881 619 18 WOS. & Sgts. Fund Dlrect costs: Individual E2 Grants Corps Dinner Nights Unrt WOS. & Sgts. Mess Nights 600 1.623 23.000 Support costs: Audit Fee Insurance Administration Miscellaneous IT support Donated services support costs Donated services MOD salaries Staff costs 25.223 1,364 1,114 404 1.156 665 1.227 7.813 9,727 2,041 135 960 8,369 10.330 22,474 33.$23 19 RE Corps Enterprlses Ltd Support costs: Donated services support costs Donated services MOD Salaries Staff costs 10.821 10.237 60.307 6.671 6.866 77.215 Rw•l Engln•wg C¢ntrnl Charllal)1o Tnmt Not08 10 th• financlal statem For the year ondod 31 Da¢omber 2024 Total 2024 2023 20 Day's Pay Scheme Support costs: Audil Fee Insur#n¢y& Admlnlstralton rr support Depreciation Donatsd servi￿9 support costs 1.384 469 1041 960 1,114 405 1.227 6.ICO 8.755 29.181 12,85D 9,322 20.991 13.884 staff costs 60.788 21 Not In¢om• I IExwndllur•) Th1s18 slated after charglng.. Deprecialton of tangftile fixed usel•: 4med by the ChArftab￿ group Auditorf• rnmun•rati¢)n (￿.347) 8.112 26,124 Dudng tha y*ar, no TNste88 rte4l¥ed any rtmunèrn￿0n (2023.. £NiD. Durfng tho ￿er. no TfUStee$ rnr*i¥ed •ny beneffts in kind12023'. £Nd). Durfng the >wr. no Truthe8 rncet¥od any rthitjurwnenl ofeyn*# 31 Royal Engineers Central Charftable Trust Notss to the flnanclal statsments For the year ended 31 December 2024 Total funds 2024 Total funds 2023 22 Staff costs Staff costs We￿ as follows: Wages and salaries Social securty costs Pension costs 209,201 195.627 14,260 12,363 16,289 15,304 239 750 223.294 The average number of persons employed by the Charity during the year was as follovts.. Management and adminisiraiion of the charity No. 16 RECE Ltd No. 17 21 23 The average headcount expressed as full-ts'me equivalents was: Management and administration of the charity RECE Ltd No. No. 11 11 The totsl employment benefits including employer pension contributions of the key management personnel were £52.617 (2023.. £29,518). No employee received numeration amoJnting to more than £60.000 in either year. 23 Tanglble flxed assets Shop fixtures, fthings and equlpment General WOS, & Sgts. Comms Hub fvnd fund property Group Total Cost or valuatlon At 1 January 2024 Disposals Re-valuation At 31 December 2024 1,074 121.993 (1,0741 173,352) 186,539 28.814 338.420 (13,838) {88,264) 14 976 256 059 Depreclatlon At 1 January 2024 Charge for the year Disposals At 31 December 2024 1,074 102.342 4.988 73,352 21.875 125,291 2.929 7,917 Net book value At 31 DeCeM￿r 2024 4010 211115 At 31 December2023 19,651 186,639 6,939 213,129 32 Royal Englneers Central Charltable Trust Notes to the flnanclal gtat•rn•nts For the y•ar ended 31 December 2024 23 Tanglble flxed assets (contlnued) Genernl WOS. & Sgts. Comm8 Hub fund fund property Total Charlty Cost or valuatlon At 1 January 2024 Adjustments At 31 December 2024 121.993 186,539 28.814 337.346 256 059 Depreclatlon At 1 January 2024 Charge for the year Disposals At 31 December 2024 102,342 4,988 21.876 (10.909) 124,217 16,921) Net book valu• At 31 December 2024 663 211116 At 31 December 2023 213,129 24 Flxod agget Investments Usted ••curltles Group & Charlty Market value At 1 January 2024 Investment Sold Revaluatlons 7,978.032 (600,000 At 31 December 2024 7 826 426 Hlstorfcal Cost 7 458 874 Gr¢)up & charity investments at market value comprise.. 2024 2023 Listad investments 7 978 032 All the fixed asset investments are hpjd i Materlal Investments All Invested funds t￿Id in the BLK Arnied Forces Chariti'es Growth & Income Fund, managed by Blackn)ck Investhient Managers Ltd. Royal Engineets Central Charftable Trust Notes to the flnanclal stateménts For the year ended 31 December 2024 25 Investment propertle$ Freehold Investment Property Group & Charlty Valuatlon At 1 January 2024 Re-valuation At 31 December 2024 1,296,000 1316 000 Support Costs Annual Fees Comprlslng Cost 1316 000 During the financial year the Charity incurred costs amounts'ng to £1.200 in the development of the properties held in Chatham & Ebsfleet The investment properties are valued on an open market value for existing use basis. 26 Stocks: Group 2024 Charity 2024 2023 2023 Flnlshed goods and goods for resale 55,173 Group 2024 Charlty 2024 2023 2023 27 Debtors: Amounts owed by group undertakings Other debtors 25.156 246.313 35.002 123,918 247.290 129,470 247 290 129.470 271.468 158.920 28 Credltors: Amounts falllng due wlthin one year Group 2024 Charlty 2024 2023 2023 Other creditors Royal Englneern Central Charltable Trust Note8 to the flnanclal statements For the year ended 31 Oe¢ember 2024 29 Stalemgnt of funds Current Year Brought FoNiard Tran8ler8 Inlout Galnsl ILo8996) Income Expendlture Canled Forward Deslgnated fund8 Comms Hub Project Fundlng 6,642 46,973 78,672 2,031 (212,146 131.942 4.010 49,004 52 615.00 80 803.00 21 146 131942.00 0.00 General fund8 RE Central Charltable Trust WOS, & Sgts. Fund RECE Ltd 9,866,846 1.147,662 11,082,418) 1131,942) 244.091 13,268 (9.679) 23,703 195,069 1208,380) 368,393 10,187,341 253,683 12,382 5,903 10,133,440 1,355,989 (1,298,377) 1131,942) 374.296 10.433.406 Total Unre81rtcied fund8 10,186,065 1,436.692 (1.610,623) 374.296 10,486.420 Rtstrlcted fund• DUTF Total of fund8 10 186 055 1436 592 1510 523 374 296 10 486 420 Prlor Year Brought Fopward Transfers Inlout Galnsl {Lo88es) Carrled FoThvard Income Expendlture De8lgnated fundi Comms Hub Project Fund 8.235 44,681 79.438 2.292 (204,826) 122,797 5,842 46,973 122 797 General funds RE Central Charitable Trust WOS, & Sgt8' Fund RECE Ltd 9,870.201 1.083,922 248.662 11.419 25,153 246,800 (1,020,145} {122,79n (25,8871 (248,256) 74,4e6 11,897 9,865,847 244,091 23,703 10 142 016 1322 147 1294 288 Total Unrestricted funds 10,194,932 1,403,875 (1,499.114) 86,363 10.186,055 Restrlcied funds DUTF Total of funds 10 194 932 1403 875 1499114 86.363 10 18605S 35 Royal Englneorn Central Charltable Trust Not09 to the financlal ststemet For the year ended 31 December 2024 30 Analysls of net assets beiween funds Current Year Unrestrfcted Restrlcted Funds Funds Total fund8 Total funds 2024 2024 2024 2023 Tangible fixed assets Fixed asset investments Investment properties Current assets Creditors due within ore year 211,115 7,825,426 1,316,000 1,174,611 (40,731) 211,115 7,825,42S 1.316,000 1,174,611 (40,731) 213,129 7,978,032 1,295,000 7.610,192 (61,299) 10 486 420 10 486 420 17,035.055 Analysis of net assets between funds Prior Year Unrestricted Restricted Funds Funds Total funds Total funds 2023 2023 2023 2022 Tangible fixed assets Fixed asset investments Invostment properties Current assets Creditors due %Mthin one year 213,129 7,978,032 1,295.000 761,192 (61.299) 213,129 7,978.032 1.295.000 761,192 227,358 8,858.566 1,220,000 908.295 {61,299) (1.019,288) 10 186 054 10.186 054 10 194.931 Royal Engineers Central Charftable Tru8t Notes to the financlal statements For the year ended 31 December 2024 31 Penslon commltments The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £16,289 (2023: £15,304). 32 Prin¢ipal subsldlarfes Company name Country Percentsge Shareholdlng Royal Engineers Corps Enterprises United Kingdom 100 33 Reconclllatlon of net movement In funds to net cash flow from operatlng actlvltle8 Total fundg 2024 Total funds 2023 Net movement in funds 300.363 (8,876) Add back depreciation charge Deduct interest income shown in invesling activities Deduct gains l add back losses on investrnents Deduct Gain on revaluation of tangible fixed assets Deduct gain on revaluation of investment propety Decrease {increase) in stock Decrease {increase) in debtors Increase (deC￿aSe) in creditors 7.917 26,124 1381,571) (347.393) IS.903) (21,000) 15.624 (117.820) (20,568) (383,501) (11,897) (86,897) 40,745 (957.98n Net cash used In operatlng actlvltles 570 349 1,374,711 37 Royal Engineer8 Central Charllable Tr￿t Notes to th• financial ststsm•nts For the year ended 31 December 2024 34 Rolatsd party transactions Brigadier James Webster and Colonel Ridwd Bouke Hawkins M8E ADC. both Trugtees of the Royal Engineer5 Central Charitable Trust (RECCT) are also Trustees of Royal Engineers Headquarter Mess {RE HQ Mess) for which transactions have taken place during the year. RECCT collected subscriptions income on behatf of RE HQ Mess totalling £160,944 which was transferred during the year. In addition, £2,351 of other reimbursements We￿ made in relation to sundry donations. grarrts and gift aid. There were also reimbursements to RECCT from RE HQ Mess of £73.849 during the year. relating to recharges of staff salaries and various admin charges. As of 31 De¢￿ber 2024 no bala￿ was (Med to RECCT (2023: £nil). and a balance of £23 was owed to RECCT (2023: £nil). Colonel Richard eouke Ha￿￿(In$ MBE ADC. CSM Spencer Eardley and Colonel Alastair Cooper QVRM TD. all Trustees of the Royal Engineers Central Charitable Trust (RECCT) are also Trustees of Royal Engineers Vocational Education and Training Trust {REVErn for which transactions have taken place during the year. RECCT paid £149 relakn'ng to sundry retharges arKI donations, whish was transferred during the year. There were also reimbursements to RECCT REVErr of £49,411 during the year ￿lating to recharge5 of staff salaries and various admin charges. As of 31 December 2024 no balance was owed from RECCT (2023: £nil), and a balance of £23 Wds to RECCT {2023.' £nil). Brigadier James Webstef, Coknel Richard 8ouke Hawkins MBE ADC. Colonel Alastair C()oper QVRM TD, Brigadier Simon John Carvel and Major General David W Southall CBE, Trustees of the Royal Engineers Central Charitable Trust (RECCT a￿ also Trustees of the Insb'tutron of Royal Engineers for whrch transactions have taken place during the year. During the year RECCT collected subscription income of behaff of the Institution of Royal Engineers totalling £443.079 arKI gift aid of £16,983 v4hich was trdnsferred during the year. A further £276 of other donations and sundry charges also transferred. As of 31 December 2024 no balance was owed from RECCT (2023.. £nil). During the year, tr* Inststuii(￿ of Royal Engineer5 also reimbursed £80,107 to RECCT for recharges relating to salaries and pensions. postage. and other admin costs. As of 31 December 2024 a balance of £23 VRS owed to RECCT (2023: £nil). Brigadier James Webster, CO1￿￿1 Richaftl Bouke H&*ins MBE ADC, Colonel Alastair Cooper QVRM TD, Brigadier Simon John Carvel and Major General David W S￿all CBE, Trustees of the Royal Engineers Central Charitable Trust (RECCT) are also Trustees of Ihe Royal Engineers Museum for which transactions have taken place during the year. During the year RECCT paid Th Royal Engineers Museum grants totalling £50,000. In additton RECCT collected subscripts'on income on behalf of the Royal Engineers Museum totalling £7.833 and reimbursed admin charges of £3,750 wthich vras transfeffed during the year. As of 31 December 2024 no balance was 0￿Ed from RECCT (2023.. £nil). The Royal Engine8rs Museum also paid over £75.432 to RECCT during the year in relation to recharges for salaries and pension costs, as W￿[1 as admin recharges. As of 31 December 2024 no balances were owed to RECCT (2023: £nil). Colonel Richard Bouke Hawkins MBE ADC and CSM Sp￿￿ Eardley. both Trustees of the Royal Engineers Central Charitable TNst (RECCT) are also Trustees of The Royal Engineers Associab'on (REA) for which transacttons have tsken Place during year. RECCT collected subscripts'on income on behalf of REA totalling £427.394. as well as dividends collected of £21.590 which was transferred to the REA during the year. A further £1.865 of other ￿1MbUrsernents were made to the REA in relation to sundry recharges. As of 31 December 2024. no balance was owed from RECCT P023: £nil). The REA also paid £121,916 to RECCT durrng the year in relation to recharges for salaries and pensions, grants and admin recharges. As of 31 December 2024. no balance Wds owed to RECCT (2023.. £nil). 35 Post balance sheet events Since the year erKI the tharity has P￿Ch￿￿ a rrtw investrnent propety for £515.000. 38