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2023-12-31-accounts

Charity number: 1068709

Royal Engineers Vocational Education and Training Trust

Trustees' report and financial statements

for the year ended 31 December 2023

Royal Engineers Vocational Education and Training Trust

Contents

Page
Trustee’s report 1 – 8
Reference and administrative details of the Charity, its trustees, and advisers 9 - 10
Independent auditor's report 11 – 14
Statement of financial activities 15
Balance sheet 16
Statement of cash flows 17
Notes to the financial statements 18 - 30

Royal Engineers Vocational Education and Training Trust Trustee’s Report for the year ended 31 December 2023

The Trustees present their annual report and the audited financial statements of the Charity for the year ended 31 December 2023. The financial statements have been prepared in accordance with the accounting policies set out at note 1 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 statements 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: there are no material uncertainties.

SUMMARY OF LEGAL OBJECTS

The objects of the Trust are:

“To promote the efficiency of the Army and in particular the Royal Engineers (RE)[1] by advancing the education and competency of its personnel both Regular and Reserve, primarily, but not exclusively, through involvement in nationally recognised vocational education and training schemes”.

EXPLANATION OF AIMS

The aims of the Trust are to:

MAIN OBJECTIVES IN 2023

The Trust’s main objectives during the reporting year were:

1 This includes the Queen’s Gurkha Engineers

1

Royal Engineers Vocational Education and Training Trust Trustee’s Report for the year ended 31 December 2023

STRATEGIES FOR ACHIEVING OBJECTIVES IN 2023

The Trust’s strategy for achieving its main objectives during the reporting year entailed:

DETAILS OF SIGNIFICANT ACTIVITIES IN 2023

The charity reviewed its qualification offer, taking into account the publicly funded qualifications available through the Army Apprenticeship scheme. From this review, a number of trade courses have been identified as potential areas where REVETT could expand its qualification offer, in accordance with Trustees’ priorities. The charity began funding a Level 3 Award in Mechanical Engineering for the Armoured Engineer trade in May 2023, starting a qualification pathway which progresses through the soldiers’ careers. The previously offered Level 3 NVQ Extended Diploma in Fabrication and Welding Engineering qualification was withdrawn by City & Guilds in August 2023 due to its low throughput and resulting lack of financial viability. REVETT ceased funding the foundation degree courses for Clerk of Works and Military Plant Foremen at the end of December 2022. The charity does provide funding for soldiers to top up their foundation degree to a BSc through the Study Grant scheme.

Qualifications provided by the Defence Awarding Organisation (DAO) have had mixed success in 2023. Ten previously suspended qualifications were re-instated in February 2023 which led to a large throughput of certificates in 2023 which were processed and issued to soldiers. However, seven suspended qualifications timed out with Ofqual due to lack of activity, leading to their withdrawal altogether. This occurred despite REVETT providing the required information to DAO prior to the date of withdrawal. No progress has been made by DAO re-establish alternative qualifications and REVETT has begun to research alternative options. One major hurdle with finding alternative qualification awarding bodies is the requirement of many construction related national qualifications to include “real work evidence”. Due to its size and scope, REVETT is limited to providing qualifications for training courses only and does not have the resource to oversee or deliver additional training or assessment.

In March 2023, a new Director of Operations was appointed, the previous Chief Executive having left in August 2022. A former ex-officio trustee covered the role temporarily during January – March 23, to prepare and set conditions for a successful new appointment. The Charity continually reviews governance procedures and as a result of this, made changes in August 2023 to the methods for providing financial support for Project Management qualifications. These qualifications are now funded via the Study Grant scheme and therefore subject to the governance checks and scrutiny embedded within that scheme. The trust has reviewed the diversity of the membership of the cohort of trustees and updated its Board membership accordingly. The role of Chair of Trustees was handed over to a new incumbent in October 2023.

The Trust publicised the support it offers to beneficiaries at two in-person events; a unit health fair in May and the Sapper Games in June 2023, both held at Brompton Barracks. In addition to routinely publishing articles in The Sapper magazine throughout 2023, the charity has launched pages on LinkedIn and Instagram to capitalise on the popularity of these social media channels to further expand the RECPD publicity footprint.

2

Royal Engineers Vocational Education and Training Trust Trustee’s Report for the year ended 31 December 2023

CONTRIBUTION OF VOLUNTEERS

The Trust has no volunteer workers.

ACHIEVEMENTS AND PERFORMANCE

Throughout 2023, learner achievements have remained good: REVETT enabled 975 learners to achieve qualifications in over 40 different subject areas (1,001 learners in 2022). REVETT output is linked, primarily, to providing and funding qualifications achieved by the RE workforce during their trade training, normally between national levels 3 and 5. Table 1 below shows the number and type of qualifications provided to members of the Corps during 2023.

Table 1. REVETT Total Qualifications and Awards 2023.

Military Course Name
Qualification name (awarding body)		 National
Level		 Number of
Number of soldiers
qualifications achieving
awarded qualification(s)
ME Construction Materials Technology (2-1)
Diploma in Construction Materials Technology (DAO)		 5 6 6
ME Design Draughtsman (0-2)
Diploma for Construction Draughtsman (Military Engineering)
(DAO)
Level 3 Award in 2D Computer Aided Design (City&Guilds)		 3
3		 24
24		 24
ME Design Draughtsman (2-1)
Diploma for Construction Draughtsman (Military Engineering)
(DAO)		 5 7 7
ME Draughtsman Electrical and Mechanical (0-2)
Diploma for Mechanical and Electrical Draughtsman (Military
Engineering) (DAO)
Level 3 Award in 2D Computer Aided Design (City & Guilds)		 3
3		 12
12		 12
ME Draughtsman Electrical and Mechanical (2-1)
Diploma for Mechanical and Electrical Draughtsman (Military
Engineering) (DAO)		 5 4 4
ME Electrician (0-2)
Diploma in Electrotechnical Studies and Practice (Military
Engineering) (DAO)
Award in the Requirements for Electrical Installations BS
7671:2018 (18th Edition) (City & Guilds)		 3
3		 60
60		 60
ME Electrician (2-1)
Diploma in Electrotechnical Studies and Practice (Military
Engineering) (DAO)
Award in Initial and Periodic Inspection and Testing of
Electrical Installations (City & Guilds)		 4
3		 38
36		 38
ME Fabricator/Welder (2-1)
NVQ Extended Diploma in Fabrication and Welding		 3 23 23

3

Engineering (City & Guilds)[2]

Engineering (City & Guilds)2
ME Fitter Air Conditioning and Refrigeration (0-2)
Award in F Gas and ODS regulations: Category I
(City&Guilds)
Refrigeration and Air Conditioning CPD Pathways (City and
Guilds)		 2
N/A		 20
20		 20
ME Fitter Equipment (2-1)
NVQ Diploma in Engineering Maintenance (Mechanical)
(City&Guilds)		 3 22 22
ME Fitter Utilities & Petroleum (2-1)
NVQ Diploma in Engineering Maintenance (Mechanical)
(City&Guilds)		 3 9 9
ME Plant Operator Mechanic (2-1)
CPCS Cards (Category A59, Excavator) (CITB)
Prometric Health and SafetyTest(CITB)		 N/A
N/A		 17
17		 17
SiteManagement SafetyTests N/A 95 95
Health&SafetyTest (CITB) N/A 142 142
Defence Explosive Munitions and Search School
Level 2 Award in Working in High Risk Confined Spaces
(City&Guilds)
Level 3 Award in Control Entry and Arrangements for
Confined Spaces (City&Guilds)
Level 3 Award in Working as a Member of a Rescue and
Recovery Team in Confined Spaces (City&Guilds)
FirstAid atWork(NUCO)		 2
3
4
N/A		 102
20
82
102		 102
ME Armoured Engineer (0-2)
Awardin Mechanical Engineering (TECOL)		 3 28 28
Project Management Qualification3
PRINCE2 Foundation and Practitioner		 4 and 5 31 31
Specialist Qualification (Various courses)
Award in Mounting Resinoid Bonded Abrasive Wheels (DAO)
Award in Mounting Vitrified and Resinoid Bonded Abrasive
Wheels (DAO)		 2 165 165
Study Grant (formerlyBursaries) Various 92 92
City&Guilds Professional Recognition Awards
Licentiateship
Affiliateship
Graduateship
Membership		 4
5
6
7		 12
28
29
9		 12
28
29
9
Totals 1348 975

RSME Group and REVETT are subject to regular, detailed External Quality Assurance visits (EQA, cf OFSTED) to ensure currency and quality of training and education. We continue to score highly during EQA visits by both City & Guilds and DAO, and are considered across the board, to be ‘low risk’, i.e. the highest grading. Direct Claim status remains suspended for all qualifications across all DAO centres, pending the introduction of new Strategy for Centre Assessment Standards Scrutiny (CASS) requirements. City & Guilds direct claim status remains in place.

The Trust operates the Royal Engineers Professional Recognition Awards scheme under delegated authority from City & Guilds Institute (London). This offers a single progressive structure, Level 4 to Level 7 for corporals and above. The levels are competence-based and require evidence of the practical application of professional skills, knowledge, and experience to provide a work-based route to higher level qualifications without a formal examination. Take-up rates for Professional Recognition Awards increased to 75 in 2023 (up from 46 in 2022) with increased numbers across all levels of award.

The second flagship scheme operated by REVETT is the Study Grant scheme. This scheme funds individual members of the Corps who wish to undertake external programmes of study, typically for first or second degrees on a distance-learning basis, for all ranks of the Corps. The scheme also supports non-academic

2 Qualification expired and removed by City & Guilds on 31 August 2023.

3 Funding for Project Management Qualifications replaced by Study Grants in May 2023.

4

Royal Engineers Vocational Education and Training Trust Trustee’s Report for the year ended 31 December 2023

qualifications to encourage younger soldiers to start CPD[4] early. 92 Study Grants were awarded in 2023 (up from 43 in 2022).

REVETT continued to support the RE Workforce at unit level via the delegated Unit CPD Fund and £61,400 was allocated across 40 units. The fund enabled the chain of command to support the workforce through quick impact allocation across a broad range of CPD activities, not just education. The funds were well received and appropriately spent. There were 276 direct beneficiaries of this scheme. Examples of CPD include: basket weaving, drone piloting, personal coaching, German, French and Russian language lessons, soap making, advanced driving, mental health awareness, highland furniture making, strategic thinking, piano lessons, sports coaching, bike maintenance, chainsaw skills, canine care, photography, security courses and dry stone walling.

The Royal Engineers Continuous Personal Development website, www.re-cpd.org.uk was redesigned and went live in August 2023. Improvements included a simpler format, functionality on mobile devices and revised application forms making it easier for beneficiaries to access the support available. It provides the base for future digital application forms for Study Grants and Professional Recognition Awards.

The Trust signed the Armed Forces covenant in August 2023 and subsequently received the Armed Forces Covenant Employer Recognition Scheme Bronze Award for support to the military community.

INVESTMENT PERFORMANCE

2023 was a very different year for markets than the previous year. Having suffered such extreme losses during 2022, equity markets rebounded in 2023 with the most significant gains being seen in the tech heavy Nasdaq. Japanese equities also made strong gains, scaling heights not seen since 1989, due in part to the return of inflation, following three decades of low inflation, as well as recent corporate governance reforms driven by the Tokyo Stock Exchange which have led companies to seek to increase shareholder value through share buybacks and higher dividend payments.

Against this backdrop, the investment portfolio performed reasonably well during the year, gaining 7.6%. It underperformed the benchmark a little at the beginning of the year but as atomos made a number of changes, particularly between March and June, performance improved to be ahead of benchmarks in the second half of the year.

Having benefited last year from holding reasonably little in the way of technology as this sector was significantly sold off, atomos made the most of these cheaper prices during 2023 and added a number of stocks in this area. They purchased Amazon, Cisco and Fiserv, which were added to the existing investments in Microsoft and Alphabet (Google) and these performed very strongly as investors took the opportunity to purchase technology at these lower levels. What have come to be known as “The Magnificent Seven” technology stocks performed so well that they accounted for around two thirds of the S&P 500’s performance for the year (which ended up by just under 25%) and goes to show how the rest of the market did not actually perform that strongly! Atomos also added names such as Booking Holdings, Visa, Salesforce, GEC and KKR, US growth stocks, which have also performed well during the year. Areas where investors were let down were the old staples such as Unilever, Shell and Roche which are all very strong businesses but not currently the focus of investors attentions.

As interest rates increased in the UK, there came a point whereby it was possible to once again purchase UK Government gilts at or around “par” (the price at which they will redeem). Therefore, atomos added further to our gilt holdings thereby locking in a risk free return of between 4.25% - 4.5% until the maturity dates of between 2027 and 2036. They have also re-arranged the fixed interest investments held, adding further investment to US fixed interest investments through 20 Year Treasury Stocks and USD “TIPS” – inflation linked bonds. They have also added some high yield bonds – in particular a fund called “fallen angels” where the fund purchases fixed interest stock from companies that have fallen out of favour and their bonds are looking cheap.

With regards to income being generated, the current estimated gross annual income is now standing at £224,633 which equates to an estimated gross annual yield of 3.21%. These figures are based upon the last dividend declared by each company and so, as companies recover and their earnings increase, we would hope to see this figure climb throughout the year.

4 Continuing Professional Development

5

Royal Engineers Vocational Education and Training Trust Trustee’s Report for the year ended 31 December 2023

FINANCIAL REVIEW

GENERAL

Net expenditure before other recognised gains and losses was £154,704 (2022: £91,734). Losses on investments amounted to £307,978 (2022: loss of £361,684).

BALANCE SHEET

Accumulated funds increased by £153,274 to £6,988,388 (2022: decreased by £453,418 to £6,835,114)

Notes to the Statement of Financial Activities and Balance Sheet provide supplementary information against each funding activity.

INVESTMENT POWERS

The Trust Deed provides full and unrestricted powers of investment to the Trustees, who sub-delegate investment decisions to Investment Managers, within the parameters of overall guidance by the Trustees.

INVESTMENT HOUSE & POLICY

The REVETT investment is managed by atomos Ltd (rebranded from Sanlam) in a portfolio with a risk level 5 of 7, with Trustee authority to move to level 6 if required to exploit opportunities as they arise. The objective of the Fund is unchanged and seeks primarily to achieve capital growth with some requirements for income whilst seeking a balance between safety and investment growth potential.

RESERVE POLICY (CAPITAL)

Trustees have stated that they a duty to honour qualifications for a period greater than 5 years, to a rolling horizon of 20 years. Unrestricted reserves total £6,988,388 (2022: £6,835,114) with no external income streams. Trustees assess that they have funds and investments to protect qualifications for 10-15 years and to fund the planned excess of expenditure over income 2024–2027. Trustees monitor capital, reserves and investments at each board meeting and are seeking new income streams.

GRANT MAKING POLICIES

Grants are considered by the Trust in line with the Trust deed and are duly recorded.

REVIEW OF PRINCIPAL FUNDING SOURCES

REVETT’s principal source of funding in 2023 was from its investments.

PLANS FOR THE FUTURE

The Trust intends to:

6

Royal Engineers Vocational Education and Training Trust Trustee’s Report for the year ended 31 December 2023

ACTIVITY REPORTING

Allocation of staff time to principal objectives and routine governance is based on the percentage individual staff members contribute to each objective or governance.

PUBLIC BENEFIT

In addition to promoting the efficiency of the Army and, in particular, RE by advancing the education and competency of its personnel both Regular and Reserve, primarily, but not exclusively, through involvement in nationally recognised vocational educational and training schemes, the work of REVETT benefits the public by:

INDEPENDENT AUDITORS

Kreston Reeves LLP were retained as the REVETT Independent Auditors.

STRUCTURE, GOVERNANCE AND MANAGEMENT

GOVERNING DOCUMENT

At the beginning of 2013 the then governing document was made up of three components: the Declaration of Trust dated 3 December 1997, the First Deed of Amendment in 2007, and the Second Deed of Amendment in 2011. The decision was taken during the year to consolidate their provisions into a single document, with the aim of improving clarity. This resulted in the Deed of Constitution and Amendment which came into effect in August 2013, and became the governing document. Another Deed of Amendment was produced in 2015 (17 November 2015) leading to the 2016 Consolidating Trust Deed which is the current governing document.

APPOINTMENT OF TRUSTEES

The Deed of Constitution and Amendment referred to above provides for a maximum of 7 ex-officio Trustees and a maximum of 3 co-opted. The latter are now appointed for a period of twelve months by a resolution of the Trustees passed at a special meeting. Co-opted Trustees may be re-appointed by the same process. The Trustees who served during the year are detailed on page 9.

TRUSTEE INDUCTION AND TRAINING

New Trustees are briefed on their role and responsibilities and advised to study the guidance provided by the Charity Commission website, in particular The Governance Jigsaw – The Essential Trustee[5] . All new Trustees, where possible, attend a trustee training course within 6 months of appointment and refresher training every 3 years.

ORGANISATIONAL STRUCTURE AND NETWORKS

To enable the Trust to achieve its objects, it employs a small operations team to:

Although autonomous, the Trustees and their employees collaborate closely with various organisations, including:

5 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/544220/Jigsaw.pdf

7

Royal Englneern Vocational Education and Tralnlng Tru8t Trustee's Report for the year ended 31 December 2023 The Royal School of Military Engineering (RSME) and other establishments training the RE workforce. The Public Private Partnership (PPP) contractors to the RSME, known as Holdfast. Headquarters Royal Engineers. Other Trusts and organlsations supporting education and work4)ased learning for the Army. Awardlng Organisations, including the Defence Awarding Organisation {DAO) and City&Guilds. RISK MANAGEMENT STATEMENT The Trustees monitor the major risks to which the charity is exposed, regularly review the risk registsr, and are satlsfied that systems have been established to manage risks identified. The three key rlsks are assessed to be: Flnanclal Investment downtum resultlng in a reduced offer and potentially leading to the closure of the trust in the long terni. REVErr has reviewed and is satisfied with its investment managerfs performance and will conduct a revlew In 2024 of the long-term sustainability of the current annual budget level, Loss of awarding status, thereby not being able to fulfil th8 purpose of the trust. Tha regular EQA vSsit8 nfimi this risk as low. Loss of beneficiary confidence In the trust resulting in reputational damage, leading to reduced uptake, and maklng the trust irrelevant to the beneficiarles. Th18 Is monltored through uptake levels; the increased numbers of Study Grant and Professional Recognition Award application8 indicate th18 rlsk Is being managed effectively. t f Trust The TNStees are responsible for preparfng the Trustees, report and the financial statements in accordance with applicable law and United Klngdom Accountlng Standards (United Kingdom Generally Accepted Accountlng Practice). The law applieAble to charities in England & Wale8 requlre8 the Trustees to prepare financlal 8tstsments for each financial year which give a true and fair view of the Charity and ts income and 8pplicatson of resources, including Its Incorne and expenditure, for that period. In preparlng these financlal statements, the Tru8tee8 are requlred to: • select suitable accounting pollcies then appty them cA>n818tently observe the methods and prlnclples of the Charities SORP (FRS 102) (2019) • make judgernents and accounting estirnate8 that are reasonable and prudent state whether applicable UK Accounting Standards (FRS 102) have been followed, Bubject to any material departure disclosed and explained in the financial statements prepare the financial statements on the going concern basis unless it is inappropriate to assume that the Charity will contlnue In buslness The Trustees are responsible for keeplng adequate accountlng records that are sufficlent 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 Charitie5 Act 2011, the Charity (Accounts & 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 deteCt￿n of fraud and other irregularits'es. Approved by the Trustees on 27 June 2024 and signed on behalf of the Trustees Colonel RB Hawklns MBE ADC Trustee

Royal Engineers Vocational Education and Training Trust

Reference and administrative details of the Charity, its Trustees and Advisers For the year ended 31 December 2023

Trustees

APPOINTMENT NAME APPOINTED RESIGNED
Chair Brig PJ Rowell MBE September 2019 October 2023
Brig GJ Boxall MBE October 2023
Corps Col Col RB Hawkins MBE ADC December 2022
Corps Col (Reserves)
Col AJ Cooper QVRM TD		 December 2022
DComd 25 Engr Gp Lt Col CW Battey February 2020 June 2023
Lt Col R Porter June 2023
DComd 8 Engr Bde Col HTS Ricketts OBE September 2021 February 2023
Not directly replaced
RE Corps Sergeant WO1 (Corps RSM) M Elliott MBE September 2021 July 2023
Major
WO1 (Corps RSM) SWA Eardley July 2023
SO1 Careers RHQ RE
Lt Col A Davies MBE		 June 2023 November 2023
Lt Col C Stafford November 2023
COS RSME Gp Lt Col C Ankers MBE December 2023
Industry Independent
Mr N Goldie-Scot		 December 2018
Education Mr S Cook January 2016
Independent
Co-opted
Treasurer Maj (Retd) I Sidebottom September 2013
Operations Director Maj (Retd) CL Leggat March 2023

Charity registered number

1068709

Principal office

RE CPD Team HQ RSME Brompton Barracks Chatham Kent ME4 4UG

9

Royal Engineers Vocational Education and Training Trust

Reference and administrative details of the Charity, its Trustees and Advisers For the year ended 31 December 2023

Independent auditor

Kreston Reeves LLP Chartered Accountants Statutory Auditor Montague Place Quayside Chatham Maritime Chatham Kent ME4 4QU

Bankers

Lloyds Bank plc Cox’s & King’s Branch PO Box 1000 London BX1 1LT

Solicitors

Furley Page LLP 39 St Margaret’s Street Canterbury Kent CT1 2TX

Investment House

Atomos Investments Limited Monument Place 24 Monument Street London EC3R 8AJ

10

Independent auditor’s report to the Trustees of the Royal Engineers Vocational Education and Training Trust

We have audited the financial statements of Royal Engineers Vocational Education and Training Trust (the ‘charity) for the year ended 31 December 2023 which comprise the Statement of financial activities, the Balance sheet, the 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 applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

The financial statements have been prepared in accordance with Accounting and Reporting by Charities in preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

This has been done for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2019.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including 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.

Conclusions relating to going concern.

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

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

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

Other information

The other information comprises the information included in the Annual report, other than the financial statements and our Auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statement or us.

knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report the fact.

We have nothing to report in this regard.

11

Independent auditor’s report to the Trustees of the Royal Engineers Vocational Education and Training Trust (continued)

Matters on which we are required to report by exception.

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

Respective responsibilities of Trustees and auditor

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 internal control as the Trustees determine is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 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 are free from material misstatement, whether due to fraud or error, and to issue an Auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISA’s (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence economic decisions of users taken based on these financial statements.

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

Capability of the audit in detecting irregularities, including fraud

The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements 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-compliance with laws and regulations related to health and safety, anti-bribery, and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered 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 Practice. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Audit procedures performed by the audit engagement team included:

12

Independent auditor’s report to the Trustees of the Royal Engineers Vocational Education and Training Trust (continued)

Auditor’s responsibilities for the audit of the financial statements (continued)

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We are also:

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

13

Independent auditor’s report to the Trustees of the Royal Engineers Vocational Education and Training Trust (continued)

Use of our report

This report is made solely to the charity’s Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s Trustees those matters we are required to state to them in an Auditor’s report and for no other purpose To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its Trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

\Le clan

Kreston Reeves LLP Chartered Accountants Statutory Auditor Chatham

Date:

Kreston Reeves LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

14

Royal Engineers Vocational Education and Training Trust

Statement of financial activities For the year ended 31 December 2023

Note
Income and endowments from:
Donations and legacies
3
Investments
6
Total income
Expenditure on:
Charitable activities
7
Total expenditure
Net expenditure before revaluations
Net gains/(losses) on investments
Net movement in funds for the year
Transfers between funds
18
Reconciliation of funds
Total funds at 1 January 2023
Total funds at 31 December 2023		 Unrestricted Restricted
Total
Total
funds
funds
funds
funds
2023
2023
2023
2022
£
£
£
£
36,866
-
36,866
61,900
214,417
-
214,417
230,677
251,283
-
251,283
292,577
405,987
-
405,987
384,311
405,987
-
405,987
384,311
(154,704)
-
(154,704)
(91,734)
307,978
-
307,978
(361,684)
153,274
-
153,274
(453,418)
-
-
-
-
6,835,114
-
6,835,114
7,288,532
6,988,388
-
6,988,388
6,835,114

The Statement of Financial Activities includes all gains and losses in the year.

All activities relate to continuing operations.

The notes on pages 18 to 30 form part of these financial statements.

15

Royal Englneers Vocatlonal Educatton and Tralnlng Trust Charlty Number 1068709 Balance sheet A8 at 31 December 2023 2022 Flxed assets Tangible assets 14 1,698 15 6.870,509 6,674,274 6.870,509 6.675,972 Current assets 16 SA93 29.536 Cash at bank 178.072 170.945 183.466 200.481 Credltor8: amounts falliro due Imthin one y 17 (65.586) (41.339) Net current awts 117.879 159.142 Net assets 6 988 388 6.835.114 Charlty Funds Unre￿riCted funds 18 6.988,388 6,835,114 Total funds 6835 114 The financial stateme approved by the Trustees on 27 June 2024 and signed on thar bthalf. ty. Brlgadler GJ Boxall MBE, Tn Colonel RB Hawklns MBE ADC. Trustee The notes on pages 18 10 30 form pwt of these finarKial statem￿. 16

Royal Engineers Vocational Education and Training Trust

Statement of Cash Flows For the year ended 31 December 2023

Note
Net cash used in operating activities
22
Cash flows from investing activities
Interest and dividends
Proceeds from sale of investments
Purchase of investments
Cash provided by investing activities
Increase in cash and cash
equivalents in the year
Cash and cash equivalents at the beginning of the year
Total cash and cash equivalents at the end of the year
Analysis of changes in net debt
Cash and cash equivalents
Cash		 2023
2022
£
£
(339,593)
(548,296)
214,417
230,677
6,053,528
2,951,398
(5,921,225)
(2,620,913)
346,720
561,162
7,127
12,866
170,945
158,079
178,072
170,945
At 31 Jan
2023
Cashflows
At 31 Dec
2023
£
£
£
170,945
7,127
178,072		 2022
£
(548,296)
230,677
2,951,398
(2,620,913)
561,162
12,866
158,079
170,945

17

Royal Engineers Vocational Education and Training Trust

Notes to the financial statements For the year ended 31 December 2023

1 General Administrative Information

Royal Engineers Vocational Education and Training Trust is an unincorporated charity in England and Wales with the charity registration number 1068709. The address of the registered office is Headquarters Royal Engineers, Ravelin Building, Brompton Barracks, Chatham, Kent, ME4 4UG. The charities principal objectives continue to be to promote the efficiency of the Army and in particular the Royal Engineers by advancing the education and competency of its personnel both Regular and Reserve, primarily, but not exclusively through involvement in nationally recognised vocational education and training schemes.

2 Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP(FRS102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

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

The financial statements are presented in UK sterling, which is the Charity's functional currency, and rounded to the nearest pound.

2.2 Preparation of the accounts on a going concern basis

The Trustees assess whether the use of going concern is appropriate, i.e.,whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the Charity has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the Charity's ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

2.3 Fund accounting

Unrestricted funds represent unrestricted income which is expendable at the discretion of the Trustees in the furtherance of the objects of the charity. Such funds may be held in order to finance both working capital and capital investment.

AWBL second call funding is restricted and can be used only for the Minley Project.

Investment income, gains and losses are allocated to the appropriate fund.

2.4 Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

18

Royal Engineers Vocational Education and Training Trust

Notes to the financial statements For the year ended 31 December 2023

2 Accounting policies (continued)

2.5 Expenditure

Liabilities are recognised as expenditure as soon as there is an obligation to committing the trust to the expenditure. All expenditure is accounted for on an accruals basis. Grants payable are payments made to third parties in the furtherance of the charitable objectives of the trust and are always authorised by the trustees.

The costs of generating funds consist of investment management and certain legal fees.

Cost of charitable activities includes grants made and the apportionment of support costs shown in note 7.

2.6 Tangible fixed assets and depreciation

All assets costing more than £1,000 are capitalised.

Depreciation is provided to write off the cost, less estimated residual value in equal annual instalments over the estimated useful economic lives of the assets. The rates of depreciation used are as follows:

Computer and office equipment ‑ 10 ‑ 20% per annum on cost

2.7 Investments

Investments held as fixed assets are included in the accounts at mid-market valuation.

2.8 Debtors

Trade and other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid.

2.9 Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.10 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.

19

Royal Engineers Vocational Education and Training Trust

Notes to the financial statements For the year ended 31 December 2023

2 Accounting policies (continued)

2.11 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

2.12 Pensions

The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year.

2.13 Donated services and facilities

The cost of donated services is included in income at a valuation which is an estimate of the financial cost borne by the donor where such a cost is quantifiable and measurable. This amount is matched by donated expenditure, apportioned against charitable activities and support.

2.14 Tender policy

Trustees introduced a tender policy that covers expenditure:

2.15 Taxation

Royal Engineers Vocational Education and Training Trust is a registered charity and accordingly no provision is considered necessary for taxation.

2.16 Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Charity does not currently have any significant accounting estimates or areas of judgement.

20

Royal Engineers Vocational Education and Training Trust

Notes to the financial statements For the year ended 31 December 2023

3
Unrestricted
Restricted
Total
Total
funds
funds
funds
funds
2023
2023
2023
2022
£
£
£
£
Note
4
-
-
-
25,145
Donated services and facilities
5
36,866
-
36,866
36,755
36,866
-
36,866
61,900
Restricted
Total
Total
4
funds
funds
funds
2023
2023
2022
£
£
£
-
-
25,145
-
-
25,145
All of the Grant income was restricted in 2022 .
Total
Total
5
funds
funds
2023
2022
£
£
Administrative salaries
36,866
36,755
Donations and Legacies
Grants
Grants
Donated services and facilities
Army Apprenticeship Fund		 Unrestricted
Restricted
Total
Total
funds
funds
funds
funds
2023
2023
2023
2022
£
£
£
£
-
-
-
25,145
36,866
-
36,866
36,755		 Unrestricted
Restricted
Total
Total
funds
funds
funds
funds
2023
2023
2023
2022
£
£
£
£
-
-
-
25,145
36,866
-
36,866
36,755		 Unrestricted
Restricted
Total
Total
funds
funds
funds
funds
2023
2023
2023
2022
£
£
£
£
-
-
-
25,145
36,866
-
36,866
36,755
-
36,866
61,900
Restricted
Total
Total
funds
funds
funds
2023
2023
2022
£
£
£
-
-
25,145
- -
25,145
Total
Total
funds
funds
2023
2022
£
£
36,866
36,755

21

Royal Engineers Vocational Education and Training Trust

Notes to the financial statements For the year ended 31 December 2023

6 Investment Income

Investment Income
Dividends
Bank interest		 Total
Total
funds
funds
2023
2022
£
£
213,533
230,620
884
57
214,417
230,677

All of the investment income was unrestricted in 2023 and 2022.

7 Analysis of expenditure on Charitable activities

Note
Training
8
Development programme
9
Registration and
certification fees
10
Health & safety testing
Tuition costs
11
Investment management
fees		 Direct
Support
costs
costs
Total
Total
2023
2023
2023
2022
£
£
£
£
152,913
105,840
258,753
177,785
1,032
81,187
82,219
131,976
16,513
-
16,513
32,991
2,906
-
2,906
1,674
-
20,320
20,320
18,074
25,276
-
25,276
21,811
198,640
207,347
405,987
384,311

Expenditure on charitable activities was £405,987 (2022: £384,311) of which £405,987 was unrestricted (2022: £359,123) and £Nil was restricted (2022: £25,188).

22

Royal Engineers Vocational Education and Training Trust

Notes to the financial statements For the year ended 31 December 2023

tes to the financial statements
r the year ended 31 December 2023
8 Training
Direct costs
Continuous Personal Development
Professional Recognition Award
ME Armoured Qualification
Support costs
Depreciation of fixed assets
Legal and professional fees
Insurance
IT support & equipment
Stationery
Postage and telephone
Photocopier
Bank charges
Staff Trg & development
Travel and subsistence
Miscellaneous costs
Hospitality
Staff costs
Donated services and facilities‑admin salaries		 Total
Total
Funds
Funds
2023
2022
£
£
113,503
77,695
9,626
4,411
29,784
-
152,913
82,106
1,698
1,334
7,999
459
352
389
1,003
740
226
219
18
85
333
279
8
11
648
-
295
389
247
409
79
-
80,645
79,113
12,289
12,252
105,840
95,679
258,753
177,785

23

Royal Engineers Vocational Education and Training Trust

Notes to the financial statements For the year ended 31 December 2023

tes to the financial statements
r the year ended 31 December 2023
9 Development programme
Direct costs
Training Development Programme
Defence Awarding Project
Maintaining Award Centre Status
Support costs
Insurance
IT support & equipment
Marketing & Website
Stationery
Postage and telephone
Subscriptions
Photocopier
Bank charges
Travel and subsistence
Miscellaneous costs
Hospitality
Communications Hub grant
Staff costs
Donated services and facilities‑admin salaries
0 Registration and certification fees
Direct costs
Registration
Certification
Refund Previous Year Expenditure		 Unrestricted Restricted
Total
Total
funds
funds
Funds
Funds
2023
2023
2023
2022
£
£
£
£
-
-
-
25,188
-
-
-
20,640
1,032
-
1,032
-
1,032
-
363
-
1,033
-
1,732
-
233
-
19
-
247
-
343
-
8
-
304
-
256
-
81
-
20,000
-
44,279
-
12,289
-		 1,032
45,828
363
401
1,033
762
1,732
-
233
227
19
87
247
249
343
288
8
11
304
401
256
422
81
-
20,000
26,250
44,279
44,798
12,289
12,252
81,187
-		 81,187
86,148
82,219
-		 82,219
131,976
2023
2022
£
£
14,388
79,045
17,129
18,580
(15,004)
(64,634)
16,513
32,991

10 Registration and certification fees

24

Royal Engineers Vocational Education and Training Trust

Notes to the financial statements For the year ended 31 December 2023

otes to the financial statements
or the year ended 31 December 2023
11 Tuition costs
Support costs
Audit fee
Insurance
IT support & equipment
Stationery
Postage and telephone
Photocopier
Bank charges
Travel and subsistence
Miscellaneous costs
Hospitality
Donated services and facilities‑admin salaries
12 Net expenditure
This is stated after charging:
Depreciation of tangible fixed assets:
‑owned by the charity
Auditor's remuneration		 Total
Total
Funds
Funds
2023
2022
5,472
3,300
352
389
1,003
740
226
219
18
86
333
279
7
11
295
389
248
409
78
-
12,288
12,252
20,320
18,074
2023
2022
£
£
1,698
1,334
5,472
3,300

During the year, no Trustees received any remuneration (2022: £NIL). During the year, no Trustees received any benefits in kind (2022: £NIL). During the year, no Trustees received any reimbursement of expenses (2022: £NIL).

25

Royal Engineers Vocational Education and Training Trust

Notes to the financial statements For the year ended 31 December 2023

13 Staff costs

Staff costs were as follows:

Wages and salaries
Social security costs
Pension costs		 2023
2022
£
£
111,701
110,593
5,019
4,986
8,204
8,332
124,924
123,911

The average number of persons employed by the Charity during the year was as follows:

Direct charitable employment
Management and administration of the charity
The average headcount expressed as full-time equivalents was:
Direct charitable employment
Management and administration of the charity		 2023
2022
No.
No.
9
9
2
3
11
12
No.
No.
3
3
2
2
5
5

No employee received remuneration amounting to more than £60,000 in either year.

The total employment benefits including employer pension contributions of the key management personnel were £28,316 (2022: £30,903).

26

Royal Engineers Vocational Education and Training Trust

Notes to the financial statements For the year ended 31 December 2023

14 Tangible fixed assets
Cost
At 1 January 2023
At 31 December 2023
Depreciation
At 1 January 2023
Charge for the year
At 31 December 2023
Net book value
At 31 December 2023
At 31 December 2022
15 Fixed asset investments
Market value
At 1 January 2023
Additions
Revaluations
Sold
At 31 December 2023
Historical cost
Investments at market value comprise:
Listed investments		 Computer
and Office
Equipment

£
25,028
25,028
23,330
1,698
25,028
-
1,698
Listed
securities
£
6,674,274
5,921,225
328,538
(6,053,528)
6,870,509
6,207,910
2023
2022
£
£
6,870,509
6,674,274		 Computer
and Office
Equipment
£
25,028
25,028
23,330
1,698
25,028
-
1,698
Listed
securities
£
6,674,274
5,921,225
328,538
(6,053,528)
6,870,509

27

Royal Engineers Vocational Education and Training Trust

Notes to the financial statements For the year ended 31 December 2023

16 Debtors

Trade debtors
Other debtors		 2023
2022
£
£
3,628
4,391
1,765
25,145
5,393
29,536

17 Creditors: amounts falling due within one year

Trade creditors
Accruals and deferred income
18 Statement of funds
Current year
Unrestricted funds
Unrestricted income fund
Total of funds
Prior year
Unrestricted funds
Unrestricted income fund
Army Apprenticeship Fund
Total of funds
Restricted funds		 2023
2022
£
£
24,797
7,292
40,789
34,047
65,586
41,339
Brought
Income
Expenditure Transfers
Gains/
Carried
forward
In/(Out)
(Losses)
forward
£
£
£
£
£
£
6,835,114
251,283
(405,987)
-
307,978
6,988,388		 2023
2022
£
£
24,797
7,292
40,789
34,047
65,586
41,339
6,835,114
251,283
(405,987)
-
307,978
6,988,388
Brought
Income
Expenditure
Transfers
Gains/
Carried
forward
In/(Out)
(Losses)
forward
£
£
£
£
£
£
7,288,532
267,432
(359,123)
(43)
(361,684)
6,835,114
-
25,145
(25,188)
43
-
-
7,288,532
292,577
(384,311)
-
(361,684)
6,835,114

28

Royal Engineers Vocational Education and Training Trust

Notes to the financial statements For the year ended 31 December 2023

19 Analysis of net assets between funds

Current year
Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Prior year
Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year		 Unrestricted Restricted
Total
funds
funds
funds
2023
2023
2023
£
£
£
-
-
-
6,870,509
-
6,870,509
183,465
-
183,465
(65,586)
-
(65,586)
6,988,388
-
6,988,388
Unrestricted
Restricted
Total
funds
funds
funds
2022
2022
2022
£
£
£
1,698
-
1,698
6,674,274
-
6,674,274
200,481
-
200,481
(41,339)
-
(41,339)
6,835,114
-
6,835,114

20 Pension commitments

The charity operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £8,204 (2022: £8,332).

29

Royal Engineers Vocational Education and Training Trust

Notes to the financial statements For the year ended 31 December 2023

21 Related party transactions

All funds received and expended are in respect of providing education and training to military and civilian staff in Royal Engineer units. Further details are provided in the Trustees' Annual Report.

The Trustees control the Trust.

22 Reconciliation of net movement in funds to net cash flow from operating activities.

cash flow from operating activities.
Reconciliation of net movement in funds to net
Net movement in funds
Add back depreciation charge
Deduct interest income shown in investing activities
Deduct gains / add back losses on investments
Decrease (increase) in debtors
Decrease (increase) in creditors
Net cash used in operating activities		 Total
Total
funds
funds
2023
2022
£
£
153,274
(453,418)
1,698
1,334
(214,417)
(230,677)
(328,538)
172,390
24,143
(27,479)
24,247
(10,446)
(339,593)
(548,296)

30