Company no. 10036700 Charity no. 1165868 

## **The REME Charity Report and Audited Financial Statements 31 December 2023** 




## **The REME Charity** 

## **Reference and administrative details** 

## **For the year ended 31 December 2023** 

**Company number** 10036700 **Charity number** 1165868 **Registered office and** The REME Charity **operational address** RHQ REME The Prince Philip Barracks MoD Lyneham Lyneham Chippenham SN15 4XX 

## **Trustees** 

Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows: 

Maj Gen S M Andrews CBE Cmdr M Ashton RN Col M J A Bullard MBE Cap H Burns Mr J Foster Col (Retd) R Fram MC Mr A P Graham Maj P C D Hembery Mr T Hirst MSc CEng FIET Ms R Norris Brig C P Phillips CBE Ms C C Robinson Col A J Rogers Col D G Scott Maj A Shand Col M A Simpson QVRM TD VR Mr P Tumim 

## Chair 

appointed 10 August 2023 

appointed 10 August 2023 appointed 18 January 2024 resigned 7 November 2023 

appointed 10 August 2023 appointed 13 January 2023 and resigned 14 November 2023 

resigned 13 January 2023 resigned 11 October 2023 

appointed 1 March 2024 appointed 10 August 2023 

## **Chief executive officer and company secretary** 

Mrs Barbel Harris 

## **Bankers** 

Holt's Farnborough Branch Royal Bank of Scotland Lawrie House Victoria Road Farnborough GU14 7NR 

Sparkasse Berliner Sparkasse Alexanderplatz 2 10178 Berlin 

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## **The REME Charity** 

## **Reference and administrative details** 

## **For the year ended 31 December 2023** 

**Solicitors** Wilsons Solicitors LLP Alexandra House St Johns Street Salisbury Wilts SP1 2SB **Investment advisor and** Sarasin and Partners LLP BlackRock (for the AFCIF holding) **nominee company** Juxton House 33 King William Street 100 St Paul’s Churchyard London London EC4R 9AS EC4M 8BU **Auditors** Godfrey Wilson Limited Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD 

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## **The REME Charity** 

## **Report of the Trustees** 

## **For the year ended 31 December 2023** 

The trustees present their report along with the 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 in note 1 to the accounts and comply with the charity’s Articles of Association, the Charities Act 2016, the Companies Act 2006, the Charities (Accounts and Reports) Regulations, and the Charities Statement of Recommended Practice (FRS102) effective 1 January 2019. 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

The charity is governed by the Articles of Association of The REME Charity dated 2 March 2016 and the current REME Charity Governance Manual. 

The trustees reviewed and amended the organisations Charity Governance Manual in 2023. The Corps of Royal Electrical and Mechanical Engineers (REME) has been supported by a charity since 1945. The REME inaugural charities were the REME Benevolent Fund and REME Scholarship funds but, over the years, these charities have been linked, closed and joined by others. Today, The REME Charity is the headline charity which has the REME Central Charitable Trust (296030-1), the REME Benevolent Fund (246967-1) and the REME Sports Association (246967-2) linked to it. The REME Museum (27240) is included in these group accounts as it is governed by the same Trustee Board and is administered by the REME Charity. The REME Trading Company is incorporated and is controlled by the Charity. 

The REME Charity closely monitors the Corps’ military operational activities and any additional support REME personnel, past or present, may require. Every spring, the Board examines the Charity’s strategy and mid-term objectives to ensure our activities meet those emerging needs and that we protect our long-term viability. To that end we have developed impact metrics and administer regular surveys to remain relevant to our beneficiaries. 

The dialogue with the REME family remains our priority and 2023 saw the launch of REME Connect, the improved one-stop-shop website at the heart of our digital communications. We also vastly increased our social media presence. 

## **Recruitment and appointment of Trustees** 

In 2023, the Charity embarked on a diversification programme for its Board of Trustees. Many Board members had come to the end of their tenure and in a departure from usual recruitment methods, we advertised the upcoming vacancies widely amongst the REME family in an effort to better reflect and represent the diversity amongst our beneficiaries. 

Five new Trustees were selected by virtue of their knowledge, lived experience and expertise. New Trustees are offered training and are supplied with pertinent information by the CEO to keep up to date with current regulatory, reporting and compliance related matters, thereby enabling them to fulfil their obligations. Succession planning and continuing diversification of the Board’s composition remain agenda items for future Board meetings. 

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## **The REME Charity** 

## **Report of the Trustees** 

## **For the year ended 31 December 2023** 

## **Organisational structure and governance** 

The Board of Trustees is an independent decision-making governing body which meets at least twice a year. The board is led by a Chair. Trustees are given responsibility for different areas of the business and chair separate sub-committees to monitor performance and exercise governance. The Finance and Investment Committee meets quarterly. The execution of the day to day running of the business is delegated to the Chief Executive Officer with delegated spending powers defined in the Governance Manual. 

## **Risk management** 

The Charity maintains a risk register which is reviewed bi-annually by a sub-committee. Risks are categorised in five main areas: Impact, Financial Sustainability, Compliance, Operational and Hazards and Reputation. A reduction in income, both from the supporter base within the Corps through the Days Pay Scheme (payroll giving) and a reduction in investment income due to volatile markets, poses the biggest risk to the Charity. 

## **OBJECTS AND ACTIVITIES** 

## **Public benefit** 

We provide public benefit by assisting REME regular and reserve personnel to more effectively perform their roles and duties within the British Army. We support their families and the retired veteran community and their families by enhancing esprit de corps through promoting the concept of support to the REME family for life. We do this by providing funding for benevolence, welfare, communications, activities, social gatherings and events. This assistance enables Service personnel to face the challenges and dangers associated with military service by developing and maintaining teamwork, skills, fitness, mental wellbeing and morale. 

We promote the efficiency of the armed forces of the Crown by enhancing the British Army’s capability to undertake the roles demanded of it including the defence of the United Kingdom and its interests. By supporting the wider REME family we assist the Government in fulfilling its promise in the Armed Forces Covenant to treat serving personnel, veterans and their families fairly. 

Through our support to the REME Museum we preserve the heritage of the Corps of REME through collecting and conserving appropriate artefacts, memorabilia and memories for future generations and communicate the story of REME and the people who served in the Corps to the visiting public and to a wider audience on-line. 

## **Objectives** 

The REME Charity is independent of military authorities. It undertakes a crucial function as the needs and ambitions of the REME family go beyond the bounds of the resources and policies of the Army and MOD. The three pillars of our support to the family are: 

- 1) To promote the efficiency of REME and foster esprit de corps; 

- 2) To relieve either generally or individually necessitous persons being members or former members of REME or their dependants (beneficiaries); and 

- 3) To support charitable purposes for the benefit of beneficiaries. 

These objectives allow the charity to provide support to REME regular, reserve and retired personnel and their families. This is done though the provision of grants to groups or individuals and through fostering connections which promote REME efficiency, ethos and comradeship, giving members a sense of belonging to the REME family. 

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## **The REME Charity** 

## **Report of the Trustees** 

## **For the year ended 31 December 2023** 

## **STRATEGY** 

In 2022, the Board of Trustees devised the REME Charity Strategy 2022 – 2025, articulating how the Charity aims to interpret and fulfil its objectives, prioritise resources and ensure capabilities for the next 3 years. It formed the basis of the workplan, recruitment and associated activities for the chief executive. The Strategy was reviewed and considered fit for purpose at the Spring 2023 workshop and continues to undergo regular reviews. 

## **2023 charitable objectives, themes and activities** Welfare 

2023 saw more cases than in previous years. We supported 451 (376 in 2022) individual cases with financial support amounting to £310,415 (£234,952 in 2022), with average grants of £693 (£625 in 2022). The Board of Trustees continued our commitment to support the Army Benevolent Fund and authorised a donation of £85,000 in support of their welfare work. 

The REME Charity’s flagship initiative ‘Lifting the Decks’ evolved to the ‘What’s on your Mind?’ campaign. To offer timely, additional support to those who reach out to us, we founded the REME Responders team. These are volunteers, offering a friendly ear, practical help and (re)connection with the wider REME family, often preventing escalations and crises. In December 2023, we had over 160 Responders on our database, the vast majority DBS checked and safeguarding trained. Founded in 2022, REME Responders stand ready to support their comrades. By the end of 2023 we achieved good geographical coverage to be able to spring into action, wherever support is needed. This can come in the shape of comrade visits, practical help with transport or chores, or a referral to specialist services. The Responders also have a closed social media group, a regular newsletter and are offered training opportunities. 

Counselling access, respite breaks, comrade visits and signposting to professional support continue to be offered under the mantle of the ‘Lifting the Decks’ programme, designed to tackle problems sooner rather than later and offers choice to the service user. In addition, the Corps Welfare Officer travelled on average 773 miles per month on comrade visits, supporting REME family members. 

‘Lifting the Decks’ has galvanised the Corps and attracts major fundraising events, such as the ‘Virtual 10k’ in May and the ‘Lifting the Decks Challenge’ in October. Those events, led by serving REME soldiers, raised £28,414 in 2023 and also helped to spread the support message more widely. 

## Esprit de Corps 

The Charity supports serving REME soldiers’ team sports, veteran reunions, mess events and other gatherings to promote cohesion and a sense of belonging. 

The Charity funded 120 adventurous training events at a total cost of over £86,347. The budget for 2024 was increased by 10% to invest even more into our serving community but also to meet sharp increases in costs. 

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## **The REME Charity** 

## **Report of the Trustees** 

## **For the year ended 31 December 2023** 

36 sports teams (2022: 36) were allocated £313,711 in 2023. The annual grassroots skiing event EXERCISE SUPREME GLACIER took place once again in December and resulted in a record number of REME skiers qualifying for the Army Championships. The Charity was happy to financially support this success. 

The REME Association held 7 RHQ led events in 2023. 196 veterans attended the annual reunion in Warwick and we had a great turnout of over 100 serving and reserve personnel, veterans and family members at the Corps Memorial event at the National Memorial Arboretum in late September. 

72 bereaved families were supplied with coffin drapes, 42 buglers, standard bearers, berets, flags etc. at veteran’s funerals. Their feedback assures us of the immense value they place on this support. 

The REME Association Job Agency (RAJA) held two job fairs in 2023, one in the South and one in the North of the UK. Both events attracted over 100 stallholders and were attended by over 200 soldiers in their career transition period. The service dealt with 676 service leavers throughout the year. 

The REME Association, the REME Institution, the REME Messes as well as the REME Museum receive annual grants from the Charity. Any unused funds return to the Charity. 

‘The Craftsman’ magazine continued to be distributed to a 4,500 strong readership. 

2023 was the second year of the REME Arkwright Scholarship. Three scholarships for Sixth Form students of STEM subjects for a duration of 2 years were awarded to lucky recipients. In addition to the £1,150 per annum, the successful candidates will receive ongoing mentoring from a senior officer and be invited to visits to REME RHQ in Lyneham. The aim of the scholarship is to promote the attractiveness of a career in the Corps and to nurture interest in STEM subjects. 

## **ACHIEVEMENTS AND PERFORMANCE** 

## **Income generation** 

The Charity continued to enjoy the support of around 75% of regular soldiers and 95% of officers through the Day’s Pay Scheme. This constituted 54% of the overall income in 2023. 37% of reservist officers and 30% of reservist other ranks also participate. It is the ambition of the Charity to increase the subscriptions numbers in order to secure future funding streams. 

In 2023, the Charity was remembered in the wills of 4 REME veterans, amounting to legacy income of £20,359. 

At 31 December 2023 they reported: 

- Sarasin main portfolio: £14,186,751 (2022: £13,304,818); 

- Sarasin resilience portfolio (in the process of closure): -£1 (2022: £124); and 

- Blackrock: £ 263,207 (2022: £262,437). 

The overall capital invested was £14,347,320 (2022: £13,063,187), an increase of £1,284,133. The Charity’s investments continued to be affected by a volatile international market. In the first two quarters of 2023, the Charity refrained from drawing any income from the Sarasin portfolio, due to high current account balances resulting from an underspend in previous years. Income collection was resumed in quarter three. 

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## **The REME Charity** 

## **Report of the Trustees** 

## **For the year ended 31 December 2023** 

## **FINANCIAL REVIEW** 

## **Income** 

The total income of the REME Charity as of 31 December 2023 was: £2,497,716 which, in addition to income generation channels and activities mentioned above, includes £197,952 of services and facilities donated by the MoD. 

## **Expenditure** 

Expenditure for the year was £2,558,768 and comprised £1,240,851 in esprit de corps activity, £547,974 in grants, £507,357 on the museum, £264,461 on support costs and £262,586 on income generation cost. 

## **Reserves policy** 

The Trustees review the reserves policy and quantum of related investments during the annual budgetary cycle in the autumn of each year. The aim is to ensure the amount held in reserves and investments is adequate to mitigate against potential financial threats and to provide a secure base to meet future requirements and fulfil the objectives of the Charity over the long term. 

The Charity identified a number of risks potentially impacting current income streams: 

- The Charity is heavily dependent on current members of the Corps supporting the Day’s Pay Giving Scheme (54% of total income). Any major change in the structure or strength of the Corps could impact the levels of future support available to Corps members; 

- The Charity is reliant on the MoD administering the Day’s Pay Giving Scheme and for the provision of infrastructure, utilities, IT systems, office supplies and a proportion of staff costs. If these MoD donated services were to be withdrawn, the Charity would suffer a strategic shock for which adequate reserve provision should be made; and 

- The performance of the Charity's investment portfolio is subject to global market movements. While the present value of the portfolio produces (generally) IRO 20% of total required income, the value and/or dividend income can fluctuate, potentially markedly, due to market volatility. 

To mitigate the identified financial risks, adequate reserves are required to meet the Charity’s objectives. Reserves should be able to meet potential strategic shocks and increases in demands whilst also enabling the Trustees to deliver the Charity’s objectives. The Charity’s commitment is to support the REME family now and particularly in the future. 

Therefore, the Trustees have assessed the level of reserves and related investments required to meet these contingencies and mitigate against the current risk profile, to be in the range of £18 million. 

The Charity’s reserves are composed of designated funds to secure long term support of the charitable objectives: Welfare & Benevolence (37%), Promoting the efficiency of the Armed Forces (13%), Sports and Adventurous Training (31%) and Esprit de Corps (17%). A further 1.6% is designated to cover future governance and administrative cost. These designations are based on historic demand levels. 

## **Funds in deficit** 

The Charity has no deficits. 

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## **The REME Charity** 

## **Report of the Trustees** 

## **For the year ended 31 December 2023** 

## **Financial position** 

The trustees consider that the assets held by the charity enable the fund to meet its foreseen future obligations. Given the charity's current level of reserves, including investment assets of over £14m, the trustees consider that the charity will continue as a going concern at current spending levels for a period of at least 8 years from the date on which these financial statements are approved. The trustees therefore consider it appropriate to adopt the going concern basis of preparation of the accounts, as detailed in note 1(c) to the financial statements. 

## **Dependency on donors** 

The viability of the Charity is highly dependent on the goodwill and donations of REME serving soldiers and veterans, with their contribution making up over half of the Charity’s income. 

It is the Charity’s ambition to increase day’s pay scheme giving subscription rates through targeted campaigns in 2024 and the diversification of income streams through increased fundraising activity, including a legacy campaign. 

## **Funds held as custodian trustee** 

No funds are held as custodian trustee. 

## **Fundraising practices** 

The REME Charity is registered with the Fundraising Regulator and we take care to ensure we comply with the Code of Fundraising practice. The majority of our fundraising is in the form of events and challenges. All are subject to relevant risk assessments and in FY2022 and to date, there have been no instances of non-compliance with the requirements. The REME Charity does not contract other companies to undertake fundraising on our behalf, nor do we use telephone direct marketing. The charity has received no complaints during the year. 

## **PLANS FOR FUTURE PERIODS** 

The Board of Trustees devised the REME Charity Strategy 2022-2025 during a workshop in early 2022 and thoroughly reviewed its impact in spring 2023. 

The Executive Implementation plan is monitored and its impact measured in regular reviews. Especially the communication efforts detailed in the Strategic Plan have exceeded targets and have contributed to increased uptake of the Charity’s support offer to its beneficiaries. We enjoy a greater presence and increased interactivity, particularly on social media platforms, and through REME Connect, the REME family’s website which received a complete overhaul. 

The Charity’s vision: 

_**“Our vision is to be the source of support, belonging and connection to the REME Family, now and always”.**_ 

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## **The REME Charity** 

## **Report of the Trustees** 

## **For the year ended 31 December 2023** 

A series of strategic objectives, whose fulfilment, taken together, will realise the Charity’s vision, are expressed as an end state for the charity at the conclusion of the plan. The end state will be a charity that: 

- Is known, relevant and trusted by the whole REME Family and other organisations; 

- Balances its outputs today with financial resilience tomorrow; 

- Exists to enhance the wellbeing of the many and of the one; 

- Promotes and enhances the reputation and legacy of the Corps; and 

- Presents and promotes Corps heritage to engender a sense of belonging and identity. 

In 2023, the treasury team added a Finance Manager to their ranks, to improve internal accounting processes and increase scrutiny. The Charity now has a clearer overview of its assets and their value. Accounting processes have also been streamlined and simplified in support of improved accuracy and consistency. 

Plans for 2024 include the recruitment of a part time administrator to improve the Charity’s relationship and communication with its many donors and fundraisers. 

## **STATEMENT OF RESPONSIBILITIES OF THE TRUSTEES** 

The Trustees (who are also directors of the charity for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with 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 Trustees are required to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and the group and the incoming resources and application of resources, including the net income or expenditure, of the charity and the group for the year. In preparing those financial statements the Trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgements and accounting estimates that are reasonable and prudent; 

- state whether applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements; and 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. 

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

In so far as the Trustees are aware: 

- there is no relevant audit information of which the charitable company's auditors are unaware; and 

- ▪ the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. 

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## **The REME Charity** 

## **Report of the Trustees** 

## **For the year ended 31 December 2023** 

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The Trustees are members of the charity but this entitles them only to voting rights. The Trustees have no beneficial interest in the charity. 

## **Auditors** 

Godfrey Wilson Limited were re-appointed as auditors to the group and parent charity during the year and have expressed their willingness to continue in that capacity. 

Approved by the trustees on 23 May 2024 and signed on their behalf by 

## Stephen Andrews 

Maj Gen S M Andrews CBE - Chair 

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## **Independent auditors' report** 

## **To the members of** 

## **The REME Charity** 

## **Opinion** 

We have audited the financial statements of The REME Charity (the 'parent charity') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the consolidated statement of financial activities, consolidated and parent charity balance sheets, consolidated statement of cash flows and the related notes to the financial statements, 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 the 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 and parent charity's affairs as at 31 December 2023 and of the group's incoming resources and application of resources, including its income and expenditure, for the year then ended; 

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

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

## **Basis for opinion** 

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

## **Conclusions relating to going concern** 

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

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

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

## **Other information** 

The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the group and parent charity financial statements and our auditor’s report thereon. Our opinion on the group and parent charity financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

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## **Independent auditors' report** 

## **To the members of** 

## **The REME Charity** 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 that fact. 

We have nothing to report in this regard. 

## **Opinion on other matters prescribed by the Companies Act 2006** 

In our opinion, based on the work undertaken in the course of the audit: 

- the information given in the trustees’ report (incorporating the strategic report and the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the trustees’ report (incorporating the strategic report and the directors’ report) have been prepared in accordance with applicable legal requirements. 

## **Matters on which we are required to report by exception** 

In the light of the knowledge and understanding of the group and the parent charity and their environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: 

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

- the parent charity financial statements are not in agreement with the accounting records and returns; 

- certain disclosures of trustees’ remuneration specified by law are not made; or 

- we have not obtained all the information and explanations necessary for the purposes of our audit. 

## **Responsibilities of the trustees** 

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

In preparing the financial statements, the trustees are responsible for assessing the 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. 

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## **Independent auditors' report** 

## **To the members of** 

## **The REME Charity** 

## **Our responsibilities for the audit of the financial statements** 

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

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

(1) We obtained an understanding of the legal and regulatory framework that the charity operates in, and assessed the risk of non-compliance with applicable laws and regulations. Throughout the audit, we remained alert to possible indications of non-compliance. 

(2) We reviewed the charity’s policies and procedures in relation to: 

- identifying, evaluating and complying with laws and regulations, and whether they were aware of any instances of non-compliance; 

- detecting and responding to the risk of fraud, and whether they were aware of any actual, suspected or alleged fraud; and 

- designing and implementing internal controls to mitigate the risk of non-compliance with laws and regulations, including fraud. 

(3) We inspected the minutes of trustee meetings. 

(4) We enquired about any non-routine communication with regulators and reviewed any reports made to them. 

(5) We reviewed the financial statement disclosures and assessed their compliance with applicable laws and regulations. 

(6) We performed analytical procedures to identify any unusual or unexpected transactions or balances that may indicate a risk of material fraud or error. 

(7) We assessed the risk of fraud through management override of controls and carried out procedures to address this risk. Our procedures included: 

- testing the appropriateness of journal entries; 

- assessing judgements and accounting estimates for potential bias; 

- reviewing related party transactions; and 

- testing transactions that are unusual or outside the normal course of business. 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. Irregularities that arise due to fraud can be even harder to detect than those that arise from error as they may involve deliberate concealment or collusion. 

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## **Independent auditors' report** 

## **To the members of** 

## **The REME Charity** 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. 

## **Use of our report** 

This report is made solely to the charityʼs members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charityʼs members those matters we are required to state to them in an auditorʼs 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 charityʼs members as a body, for our audit work, for this report, or for the opinions we have formed. 


Date: 23 May 2024 

## **Robert Wilson FCA (Senior Statutory Auditor)** 

For and on behalf of: 

## **GODFREY WILSON LIMITED** 

Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD 

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## **The REME Charity** 

**Consolidated statement of financial activities** _(incorporating an income and expenditure account)_ 

## **For the year ended 31 December 2023** 

|Restricted<br>Note<br>£<br>**Income from:**<br>Donations and legacies<br>3<br>337,574<br>Charitable activities<br>5<br>-<br>Other trading activities<br>6<br>69,397<br>Investments<br>7<br>29,547<br>**Total income**<br>436,518<br>**Expenditure on:**<br>Raising funds<br>2,419<br>Charitable activities:<br>Benevolence grants<br>62,113<br>Esprit de corps<br>393,447<br>Museum<br>-<br>Other expenditure<br>-<br>**Total expenditure**<br>8<br>457,979<br>(21,461)<br>Net gains / (losses) on investments<br>16<br>95,451<br>**Net income / (expenditure)**<br>73,990<br>Transfers between funds<br>137,201<br>**Other recognised gains / (losses):**<br>14<br>-<br>**Net movement in funds**<br>9<br>211,191<br>**Reconciliation of funds:**<br>Total funds brought forward<br>4,182,889<br>**Total funds carried forward**<br>4,394,080<br>Losses on revaluation of heritage<br>assets<br>**Net expenditure before investment**<br>**gains / (losses)**|Unrestricted<br>£<br>1,351,107<br>93,832<br>232,766<br>383,493<br>2,061,198<br>260,167<br>485,861<br>847,404<br>507,357<br>-<br>2,100,789<br>(39,591)<br>648,275<br>608,684<br>(137,201)<br>(35,000)<br>436,483<br>13,681,566<br>14,118,049|**2023**<br>**Total**<br>**£**<br>**1,688,681**<br>**93,832**<br>**302,163**<br>**413,040**<br>**2,497,716**<br>**262,586**<br>**547,974**<br>**1,240,851**<br>**507,357**<br>**-**<br>**2,558,768**<br>**(61,052)**<br>**743,726**<br>**682,674**<br>**-**<br>**(35,000)**<br>**647,674**<br>**17,864,455**<br>**18,512,129**|2022<br>Total<br>£<br>1,699,211<br>47,560<br>254,280<br>392,491|
|---|---|---|---|
||||2,393,542|
||||342,461<br>470,089<br>1,045,802<br>441,104<br>1,028,004|
||||3,327,460|
||||(933,918)<br>(1,802,534)|
||||(2,736,452)<br>-<br>-|
||||(2,736,452)<br>20,600,907|
||||17,864,455|



All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 23 to the accounts. 

15 



## **The REME Charity** 

## **Consolidated balance sheets** 

## **As at 31 December 2023** 

|Note<br>**Fixed assets**<br>Tangible assets<br>13<br>Heritage assets<br>14<br>Mixed motive investments<br>15<br>Fixed asset investments<br>16<br>Investment property<br>17<br>**Current assets**<br>Stock<br>18<br>Debtors<br>19<br>Cash at bank and in hand<br>**Liabilities**<br>Creditors due within 1 year<br>20<br>**Net current assets**<br>**Total assets less current liabilities**<br>Creditors due after more than 1 year<br>**Net assets**<br>22<br>**Funds**<br>23<br>Restricted funds<br>Unrestricted funds<br>Designated funds<br>General funds<br>**Total charity funds**|**The group**<br>**2023**<br>**£**<br>**1,227,582**<br>**2,335,667**<br>**41,354**<br>**14,347,320**<br>**-**<br>**17,951,923**<br>**232,862**<br>**155,645**<br>**278,752**<br>**667,259**<br>**(93,949)**<br>**573,310**<br>**18,525,233**<br>**(13,104)**<br>**18,512,129**<br>**4,394,080**<br>**2,813,579**<br>**11,304,470**<br>**18,512,129**|The group<br>2022<br>£<br>1,316,805<br>2,340,077<br>43,224<br>13,063,187<br>-<br>16,763,293<br>214,715<br>164,086<br>881,816<br>1,260,617<br>(146,351)<br>1,114,266<br>17,877,559<br>(13,104)<br>17,864,455<br>4,182,889<br>2,724,197<br>10,957,369<br>17,864,455|**The charity**<br>**2023**<br>**£**<br>**932,235**<br>**362,841**<br>**41,354**<br>**14,347,320**<br>**-**<br>**15,683,750**<br>**158,477**<br>**172,975**<br>**169,121**<br>**500,573**<br>**(345,335)**<br>**155,238**<br>**15,838,988**<br>**(13,104)**<br>**15,825,884**<br>**4,391,755**<br>**130,000**<br>**11,304,129**<br>**15,825,884**|The charity<br>2022<br>£<br>962,242<br>348,601<br>43,224<br>13,063,187<br>-|
|---|---|---|---|---|
|||||14,417,254|
|||||150,978<br>132,279<br>790,477|
|||||1,073,734<br>(294,187)|
|||||779,547|
|||||15,196,801<br>(13,104)|
|||||15,183,697|
|||||4,180,564<br>110,000<br>10,893,133|
|||||15,183,697|



These accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime. 

Approved by the trustees on 23 May 2024 and signed on their behalf by 

## Stephen Andrews 

Maj Gen S M Andrews CBE - Chair 

16 



## **The REME Charity** 

## **Consolidated statement of cash flows** 

## **For the year ended 31 December 2023** 

|**Cash used in operating activities:**<br>Net movement in funds<br>Adjustments for:<br>Loss / (profit) on the disposal of tangible assets<br>Depreciation charges<br>Loss / (profit) on the disposal of heritage assets<br>Loss / (profit) on the disposal of mixed motive investments<br>Donation of heritage assets<br>Revaluation losses / (gains) on heritage assets<br>Revaluation losses / (gains) on tangible fixed assets<br>Revaluation (gains) / losses on mixed motive investments<br>(Gains) / losses on investments<br>Dividends, interest and rents from investments<br>(Increase) / decrease in stock<br>Decrease / (increase) in debtors<br>(Decrease) / increase in creditors<br>**Net cash (used in) / provided by operating activities**<br>**Cash flows from investing activities:**<br>Dividends, interest and rents from investments<br>Purchase of tangible fixed assets<br>Purchase of heritage assets<br>Purchase of investments<br>Disposal proceeds on sale of fixed asset investments<br>Disposal proceeds on sale of investment property<br>**Net cash (used in) / provided by investing activities**<br>**(Decrease) / increase in cash and cash equivalents in the year**<br>Cash and cash equivalents at the beginning of the year<br>**Cash and cash equivalents at the end of the year**|**2023**<br>**£**<br>**647,674**<br>**18,160**<br>**87,430**<br>**5,250**<br>**2,360**<br>**-**<br>**35,000**<br>**3,550**<br>**(490)**<br>**(743,726)**<br>**(413,040)**<br>**(18,147)**<br>**8,441**<br>**(52,402)**<br>**(419,940)**<br>**413,040**<br>**(19,917)**<br>**(35,840)**<br>**(540,407)**<br>**-**<br>**-**<br>**(183,124)**<br>**(603,064)**<br>**881,816**<br>**278,752**|2022<br>£<br>(2,736,452)<br>212,446<br>68,626<br>815,558<br>-<br>(33,000)<br>-<br>-<br>-<br>1,802,534<br>(392,491)<br>(22,977)<br>(15,455)<br>47,532|
|---|---|---|
|||(253,679)|
|||392,491<br>(198,930)<br>(24,000)<br>(986,669)<br>586,669<br>506,246|
|||275,807|
|||22,128<br>859,688|
|||881,816|



## **Analysis of changes in net debt** 

The charity has not provided an analysis of changes in net debt as it does not have any long term financing arrangements. 

17 



## **The REME Charity** 

## **Notes to the financial statements** 

## **For the year ended 31 December 2023** 

**1. Accounting policies** 

## **a) Basis of preparation** 

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities in preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. 

The REME Charity 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 notes for investments (notes m, n, o) and heritage assets (note l). 

## **b) Group accounts** 

These financial statements consolidate the results of the charitable company and its whollycontrolled subsidiaries, The Corps of Royal Electrical and Mechanical Engineers Museum (charity registration number 272740) and The REME Trading Company Limited (company number 10258502) on a line by line basis. Transactions and balances between the charitable company and its subsidiaries have been eliminated from the consolidated financial statements. Balances between the parent and its subsidiaries are disclosed in the notes of the charitable company's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charitable company itself is not presented because the charitable company has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006. 

In accordance with Charity Commission guidance, all linked charities per a Scheme dated 28 October 2016 are required to be reported as restricted funds. The linked charities comprise: 

- Royal Electrical and Mechanical Engineers Central Charitable Trust (charity no. 1165868-1); 

- The Royal Electrical and Mechanical Engineers' Benevolent Fund (charity no. 1165868-2); 

- Royal Electrical and Mechanical Engineers' Hotel Fund (charity no. 1165868-3 - now closed and removed from the register); and 

- The General Fund of the Royal Electrical and Mechanical Engineers Sports Association (charity no. 1165868-4). 

## **c) Going concern basis of accounting** 

The accounts have been prepared on the assumption that the charity is able to continue as a going concern, which the trustees consider appropriate having regard to the current level of unrestricted reserves. There are no material uncertainties about the charity's ability to continue as a going concern. 

## **d) Income** 

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

Income from the government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. 

18 



## **The REME Charity** 

## **Notes to the financial statements** 

## **For the year ended 31 December 2023** 

**1. Accounting policies (continued)** 

## **d) Income (continued)** 

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executors to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. 

Income received for advertising in advance of publication is deferred until criteria for income recognition are met. 

## **e) Donated services and facilities** 

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item, is probable and the economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised. 

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt. 

## **f) Interest receivable** 

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity: this is normally upon notification of the interest paid or payable by the bank. 

## **g) Funds accounting** 

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the charity. 

## **h) Expenditure and irrecoverable VAT** 

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. 

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. 

19 



## **The REME Charity** 

## **Notes to the financial statements** 

## **For the year ended 31 December 2023** 

## **1. Accounting policies (continued)** 

## **i) Allocation of support and governance costs** 

- Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Governance costs are the costs associated with the governance arrangements of the charity, including the costs of complying with constitutional and statutory requirements and any costs associated with the strategic management of the charity’s activities. These costs have been allocated between costs of raising funds and expenditure on charitable activities based on the proportion of direct costs, as follows: 

||**2023**|2022|
|---|---|---|
|Raising funds|**10.3%**|15.2%|
|Charitable activities:|||
|Benevolence grants|**21.4%**|20.9%|
|Esprit de corps|**48.5%**|46.4%|
|Museum|**19.8%**|17.5%|



## **j) Grants payable** 

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure. 

## **k) Tangible fixed assets** 

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows: 

Yachts 10 years straight line to residual value of £70,000 Furniture and equipment 3 - 10 years straight line basis Corps items Not depreciated 

Items of equipment are capitalised where the purchase price exceeds £2,000. 

The REME Collection ("Corps items"), which has been built up over many years, reflects the wide range of artefacts ranging from wooden carvings, paintings, silver pieces, furniture and many trinkets and items of an ornamental nature. Corps items are considered to have indeterminate lives and the trustees therefore do not consider it appropriate to charge depreciation. Items are initially recorded at cost when an acquisition has been made by purchase. The items are periodically revalued and any gain or loss arising on revaluation will be posted to the statement of financial activities. Methods of valuation are given in note 1 (l) below. 

## **l) Heritage assets** 

The REME Charity has gained a wide and varied collection of assets since its formation in 1942. These are held within the Messes, the Church, and the Headquarters and have either been donated by individuals or units, or gifted by the MoD. 

Where these assets are held primarily for their contribution to our nation’s culture and knowledge, they are classified as ‘heritage assets’. 

20 



## **The REME Charity** 

## **Notes to the financial statements** 

## **For the year ended 31 December 2023** 

## **1. Accounting policies (continued) l) Heritage assets (continued)** 

The valuation of such a diverse and varied collection and the lack in many cases of comparable market values has meant an equally diverse approach in obtaining valuations. It has been necessary to use many sources of valuation expertise. These have included professional valuations as in the case of the silver and artwork and recourse to the many websites, trade magazines, auction houses and professional catalogues. The trustees have valued the heritage assets where available by reference to these experts, however valuations are often informal and occasionally written valuations are unavailable. 

The assets are generally valued at 50% of insurance value. The heritage assets were not revalued in 2023 but during the year ended 31 December 2021 all artworks and silverware was revalued by Madley Associates, fellows of the National Association of Valuers and Auctioneers. 

The assets are considered to have indeterminate lives and the trustees therefore do not consider it appropriate to charge depreciation. All heritage assets are reviewed for impairment annually and any charge taken to the SoFA. 

Only items valued at more than £3,000 will be capitalised as heritage assets. 

## **m) Mixed motive investments** 

Mixed motive investments represent the charity's collection of fine art, held by the charity primarily to contribute to the esprit de corps activities of the messes, but which is also held for its potential investment growth. Fine art is held at fair value. 

## **n) Investment property** 

Investment properties are included in the balance sheet at fair value and are not depreciated. Changes in fair value are recognised in the statement of financial activities. Investment property is professionally revalued every two years, and informally reviewed for impairment annually. 

## **o) Fixed asset investments** 

Listed investments are stated at market value at the balance sheet date. The statement of financial activities includes the net gains and losses arising on revaluation and disposal throughout the year. 

## **p) Stock** 

Stock is included at the lower of cost or net realisable value. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market. 

## **q) Debtors** 

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 

## **r) Cash at bank and in hand** 

Cash at bank and cash 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. 

21 



## **The REME Charity** 

## **Notes to the financial statements** 

## **For the year ended 31 December 2023** 

## **1. Accounting policies (continued)** 

## **s) Creditors** 

Creditors and provisions are recognised where there is a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. 

## **t) Financial instruments** 

The charitable company 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. 

## **u) Pension costs** 

The charitable company operates a defined contribution pension scheme for its employees. There are no further liabilities other than that already recognised in the SOFA. 

## **v) Foreign currency transactions** 

Transactions in foreign currencies are translated at rates prevailing at the date of the transaction. Balances denominated in foreign currencies are translated at the rate of exchange prevailing at the year end. 

## **w) Accounting estimates and key judgements** 

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. 

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below. 

## **Depreciation** 

As described in note 1k to the financial statements, depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. 

## **Revaluations** 

Heritage assets, mixed motive investments and investment property are stated at estimated fair value based on periodic valuations, as disclosed in notes 1l, 1m, 1n and 1o. 

22 



## **The REME Charity** 

## **Notes to the financial statements** 

## **For the year ended 31 December 2023** 

## **1. Accounting policies (continued)** 

## **w) Accounting estimates and key judgements (continued)** 

## **Derecognition of assets** 

In the prior year, the decision to write off heritage assets below £3k and tangible fixed assets below £2k was made by the trustees in order to streamline the management of assets for the group. 

As the organisation holds a large number of assets, this policy allows for a simpler register of assets to be maintained, reducing administrative burden and improving efficiency by focusing valuations on high-value heritage assets. This change has resulted in a loss on disposal of heritage assets of £815,558 and tangible fixed assets of £58,864. From an accounting presentation perspective this is shown as a “Loss on Disposal”. The Trustees wish to emphasise, however, that this is a one-time occurrence and no assets have been sold or scrapped. It does not reflect any reduction in the overall value or ownership of the organisation's assets or its financial health. 

## **2. Prior period comparatives: statement of financial activities** 

|**Income from:**<br>Donations and legacies<br>Charitable activities<br>Other trading activities<br>Investments<br>**Total income**<br>**Expenditure on:**<br>Raising funds<br>Charitable activities:<br>Benevolence grants<br>Esprit de corps<br>Museum<br>Other expenditure<br>**Total expenditure**<br>Net gains / (losses) on investments<br>**Net income / (expenditure) and net**<br>**movement in funds**<br>**Net income / (expenditure) before**<br>**investment gains**|Restricted<br>£<br>285,154<br>-<br>571<br>21,229<br>306,954<br>3,568<br>21,969<br>233,650<br>-<br>-<br>259,187<br>47,767<br>262,722<br>310,489|£<br>1,414,057<br>47,560<br>253,709<br>371,262<br>2,086,588<br>338,893<br>448,120<br>812,152<br>441,104<br>1,028,004<br>3,068,273<br>(981,685)<br>(2,065,256)<br>(3,046,941)<br>Unrestricted|**2022**<br>**Total**<br>**£**<br>**1,699,211**<br>**47,560**<br>**254,280**<br>**392,491**|
|---|---|---|---|
||||**2,393,542**|
||||**342,461**<br>**470,089**<br>**1,045,802**<br>**441,104**<br>**1,028,004**|
||||**3,327,460**|
||||**(933,918)**<br>**(1,802,534)**|
||||**(2,736,452)**|



23 



## **The REME Charity** 

## **Notes to the financial statements** 

## **For the year ended 31 December 2023** 

## **3. Income from donations and legacies** 

|Restricted<br>£<br>Subscriptions - retired officers<br>13,432<br>Subscriptions - serving officers<br>135,752<br>Subscriptions - museum (gold card)<br>-<br>Subscriptions - other ranks<br>50,724<br>Sports association grants<br>18,391<br>MOD grant in aid<br>-<br>Other donations<br>96,743<br>Donated heritage assets<br>-<br>Legacies<br>20,359<br>Donated investment management services<br>2,173<br>Donated services and facilities *<br>-<br>**Total income from donations and legacies**<br>337,574<br>**Prior period comparative**<br>Restricted<br>£<br>Subscriptions - retired officers<br>28,702<br>Subscriptions - serving officers<br>130,492<br>Subscriptions - museum (gold card)<br>-<br>Subscriptions - other ranks<br>49,707<br>Sports association grants<br>35,000<br>MOD grant in aid<br>-<br>Other donations<br>34,253<br>Donated heritage assets<br>-<br>Legacies<br>7,000<br>Donated investment management services<br>-<br>Donated services and facilities *<br>-<br>**Total income from donations and legacies**<br>285,154<br>* Donated services and facilities consists of:<br>Donated staff time<br>Donated facilities - office premises, equipment and utilities|£<br>-<br>135,752<br>89,569<br>611,228<br>-<br>189,242<br>100,119<br>-<br>-<br>27,245<br>197,952<br>1,351,107<br>£<br>-<br>130,492<br>93,867<br>578,538<br>-<br>181,754<br>80,017<br>33,000<br>100<br>97,659<br>218,630<br>1,414,057<br>**2023**<br>**£**<br>**169,278**<br>**28,674**<br>**197,952**<br>Unrestricted<br>Unrestricted|**2023**<br>**Total**<br>**£**<br>**13,432**<br>**271,504**<br>**89,569**<br>**661,952**<br>**18,391**<br>**189,242**<br>**196,862**<br>**-**<br>**20,359**<br>**29,418**<br>**197,952**|
|---|---|---|
|||**1,688,681**|
|||2022<br>Total<br>£<br>28,702<br>260,984<br>93,867<br>628,245<br>35,000<br>181,754<br>114,270<br>33,000<br>7,100<br>97,659<br>218,630|
|||1,699,211|
|||2022<br>£<br>189,428<br>29,202|
|||218,630|



24 



## **The REME Charity** 

## **Notes to the financial statements** 

## **For the year ended 31 December 2023** 

## **4. Government grants** 

- The charity receives government grants, defined as funding from the Ministry of Defence to fund charitable activities. The total value of such grants in the period ending 31 December 2023 was £189,242 (2022: £181,754). There are no unfulfilled conditions or contingencies attaching to these grants in the current or prior year. 

## **5. Income from charitable activities** 

|Museum admission<br>Children's activities<br>Museum research<br>**Total income from charitable activities**<br>**Prior period comparative**<br>Museum admission<br>Children's activities<br>Museum research<br>Development fund grant income<br>**Total income from charitable activities**<br>**Income from other trading activities**<br>REME trading income<br>Sponsorship<br>Other fundraising<br>**Total income from other trading activities**|Restricted<br>£<br>-<br>-<br>-<br>-<br>Restricted<br>£<br>-<br>-<br>-<br>-<br>-<br>Restricted<br>£<br>-<br>69,017<br>380<br>69,397|Unrestricted<br>£<br>83,565<br>8,009<br>2,258<br>93,832<br>Unrestricted<br>£<br>42,675<br>2,067<br>946<br>1,872<br>47,560<br>£<br>182,958<br>1,000<br>48,808<br>232,766<br>Unrestricted|**2023**<br>**Total**<br>**£**<br>**83,565**<br>**8,009**<br>**2,258**|
|---|---|---|---|
||||**93,832**|
||||2022<br>Total<br>£<br>42,675<br>2,067<br>946<br>1,872|
||||47,560|
||||**2023**<br>**Total**<br>**£**<br>**182,958**<br>**70,017**<br>**49,188**|
||||**302,163**|



**6. Income from other trading activities** 

25 



## **The REME Charity** 

## **Notes to the financial statements** 

## **For the year ended 31 December 2023** 

**6. Income from other trading activities (continued) Prior period comparative:** 

|**Income from other trading activities (continued)**||||
|---|---|---|---|
|**Prior period comparative:**<br>REME trading income<br>Sponsorship<br>Other fundraising<br>**Total income from other trading activities**|Restricted<br>£<br>-<br>-<br>571<br>571|£<br>172,440<br>25,850<br>55,419<br>253,709<br>Unrestricted|2022<br>Total<br>£<br>172,440<br>25,850<br>55,990|
||||254,280|



**7. Income from investments** 

|Income from listed investments<br>Bank interest<br>**Total income from investments**<br>**Prior period comparative:**<br>Income from listed investments<br>Property income<br>Bank interest<br>**Total income from investments**|Restricted<br>£<br>29,547<br>-<br>29,547<br>Restricted<br>£<br>18,249<br>2,980<br>-<br>21,229|£<br>380,570<br>2,923<br>383,493<br>£<br>370,340<br>-<br>922<br>371,262<br>Unrestricted<br>Unrestricted|**2023**<br>**Total**<br>**£**<br>**410,117**<br>**2,923**|
|---|---|---|---|
||||**413,040**|
||||2022<br>Total<br>£<br>388,589<br>2,980<br>922|
||||392,491|



26 



## **The REME Charity** 

## **Notes to the financial statements** 

## **For the year ended 31 December 2023** 

## **8. Total expenditure** 

|REME Museum<br>REME Institution (Officers' club)<br>REME Trading<br>Officers Mess functions and costs<br>Grants payable (note 12)<br>REME Sports<br>Association events and costs<br>REME Corps Sergeants' Mess<br>Office expenses<br>Repairs and maintenance<br>Loss on disposal of assets<br>Depreciation<br>Fundraising and investment property costs<br>Publication costs<br>Staff costs (note 10)<br>Insurance<br>Trustee expenses<br>Donated facilities<br>Legal and professional<br>**Sub-total**<br>Allocation of support and governance costs<br>**Total expenditure**|Raising<br>funds<br>£<br>-<br>-<br>117,129<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>3,269<br>-<br>115,048<br>-<br>-<br>-<br>-<br>235,446<br>27,140<br>**262,586**|Charitable<br>activities:<br>grants<br>£<br>£<br>-<br>-<br>-<br>57,883<br>-<br>-<br>-<br>11,532<br>402,880<br>655,809<br>-<br>16,496<br>-<br>52,720<br>-<br>24,411<br>-<br>8,910<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>82,142<br>88,459<br>202,700<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>491,339<br>1,112,603<br>56,635<br>128,248<br>**547,974**<br>**1,240,851**<br>Charitable<br>activities:<br>esprit de corps|£<br>20,082<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>665<br>-<br>5,250<br>64,070<br>-<br>-<br>364,852<br>-<br>-<br>-<br>-<br>454,919<br>52,438<br>**507,357**<br>Charitable<br>activities:<br>museum|Support and<br>governance<br>costs<br>£<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>116,356<br>5,000<br>20,520<br>23,360<br>-<br>-<br>27,124<br>10,654<br>4,354<br>28,977<br>28,116<br>264,461<br>(264,461)<br>**-**|**2023 Total**<br>**£**<br>**20,082**<br>**57,883**<br>**117,129**<br>**11,532**<br>**1,058,689**<br>**16,496**<br>**52,720**<br>**24,411**<br>**125,931**<br>**5,000**<br>**25,770**<br>**87,430**<br>**3,269**<br>**82,142**<br>**798,183**<br>**10,654**<br>**4,354**<br>**28,977**<br>**28,116**|
|---|---|---|---|---|---|
||||||**2,558,768**<br>**-**|
||||||**2,558,768**|



27 



## **The REME Charity** 

## **Notes to the financial statements** 

## **For the year ended 31 December 2023** 

## **8. Total expenditure - prior period comparative** 

|REME Museum<br>REME Institution (Officers' club)<br>REME Trading<br>Officers Mess functions and costs<br>Grants payable (note 12)<br>REME Sports<br>Association events and costs<br>REME Corps Sergeants' Mess<br>Office expenses<br>Repairs and maintenance<br>Depreciation<br>Loss on disposal of assets<br>Corps recruiting<br>Fundraising and investment property costs<br>Publication costs<br>Staff costs (note 10)<br>Insurance<br>Trustee expenses<br>Donated facilities<br>Investment manager fees<br>Legal and professional<br>**Sub-total**<br>Allocation of support and governance costs<br>**Total expenditure**|Raising<br>funds<br>£<br>-<br>-<br>113,816<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>11,427<br>-<br>111,711<br>-<br>-<br>-<br>67,684<br>-<br>304,638<br>37,823<br>342,461|Charitable<br>activities:<br>grants<br>£<br>£<br>-<br>-<br>-<br>49,712<br>-<br>-<br>-<br>9,080<br>325,202<br>525,975<br>-<br>20,307<br>-<br>27,208<br>-<br>22,866<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>5,490<br>-<br>-<br>-<br>96,660<br>92,881<br>173,046<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>418,083<br>930,344<br>52,006<br>115,458<br>470,089<br>1,045,802<br>Charitable<br>activities:<br>esprit de corps|£<br>19,354<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>46,315<br>-<br>-<br>-<br>-<br>331,890<br>-<br>-<br>-<br>-<br>-<br>397,559<br>43,545<br>441,104<br>Charitable<br>activities:<br>museum|Other<br>expenditure<br>£<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>1,028,004<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>1,028,004<br>-<br>1,028,004|Support and<br>governance<br>costs<br>£<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>99,747<br>20,861<br>22,311<br>-<br>12,724<br>-<br>-<br>28,091<br>7,146<br>2,286<br>29,202<br>-<br>26,464<br>248,832<br>(248,832)<br>-|2022 Total<br>£<br>19,354<br>49,712<br>113,816<br>9,080<br>851,177<br>20,307<br>27,208<br>22,866<br>99,747<br>20,861<br>68,626<br>1,028,004<br>18,214<br>11,427<br>96,660<br>737,619<br>7,146<br>2,286<br>29,202<br>67,684<br>26,464|
|---|---|---|---|---|---|---|
|||||||3,327,460<br>-|
|||||||3,327,460|



28 



## **The REME Charity** 

## **Notes to the financial statements** 

## **For the year ended 31 December 2023** 

## **9. Net movement in funds** 

This is stated after charging: 

|Depreciation<br>Loss on disposal of assets<br>Trustees' remuneration<br>Trustees' reimbursed expenses<br>Auditors' remuneration (excluding VAT):<br>Statutory audit<br>Consultancy<br>Corporation tax return|**2023**<br>**£**<br>**87,430**<br>**25,770**<br>**Nil**<br>**4,354**<br>**19,000**<br>**253**<br>**350**|2022<br>£<br>68,626<br>1,028,004<br>Nil<br>2,286<br>16,290<br>4,940<br>300|
|---|---|---|



Trustees' reimbursed expenses comprise travel, subsistence and accommodation costs relating to 5 trustees (2022: 3 trustees). 

Total governance costs were £27,154 (2022: £21,834). 

## **10. Staff costs and numbers** 

Staff costs were as follows: 

|Salaries and wages<br>Social security costs<br>Pension costs<br>Donated salaries<br>Freelance staff|**2023**<br>**£**<br>**554,934**<br>**42,342**<br>**13,329**<br>**168,975**<br>**18,603**<br>**798,183**|2022<br>£<br>472,115<br>34,844<br>24,137<br>189,428<br>17,095|
|---|---|---|
|||737,619|



One employee earned between £60,000 and £70,000 during the year (2022: one employee). 

The key management personnel of the charitable company comprise the CEO and Museum Director. The total employee benefits of the key management personnel paid by the charity were £122,728 (2022: £113,335). 

|Average number of employees (head count):|**2023**<br>**No.**<br>**25**|2022<br>No.<br>25|
|---|---|---|



## **11. Taxation** 

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. 

29 



## **The REME Charity** 

## **Notes to the financial statements** 

## **For the year ended 31 December 2023** 

## **12. Grants payable** 

|Benevolence<br>REME Sports<br>Discretionary grants<br>Adventurous and enterprising activities<br>REME Corps Sergeants' Mess<br>Officers Mess|Individuals<br>£<br>310,265<br>-<br>150<br>-<br>-<br>-<br>310,415|**Total**<br>Institutions<br>**2023**<br>£<br>**£**<br>92,615<br>**402,880**<br>313,712<br>**313,712**<br>203,589<br>**203,739**<br>88,347<br>**88,347**<br>22,545<br>**22,545**<br>27,466<br>**27,466**<br>748,274<br>**1,058,689**|
|---|---|---|



## **Prior period comparative** 

|**Prior period comparative**||||
|---|---|---|---|
|Benevolence<br>REME Sports<br>Discretionary grants<br>Adventurous and enterprising activities<br>REME Corps Sergeants' Mess<br>Officers Mess|Individuals<br>£<br>234,952<br>-<br>-<br>-<br>-<br>-<br>234,952|Institutions<br>£<br>90,250<br>262,960<br>168,671<br>45,932<br>29,899<br>18,513<br>616,225|Total<br>2022<br>£<br>325,202<br>262,960<br>168,671<br>45,932<br>29,899<br>18,513|
||||851,177|



The charity's grant making activities are characterised by large numbers of small grants, paid to support serving and retired soldiers and officers of the REME Corps. The total grants made to individuals in the current year was 451 (2022: 376). Individual grants are rarely made direct to the individual beneficiary. Grants are usually processed via a third party organisation such as the Army Benevolent Fund; the Soldiers’ Charity (ABF), The Sailors, Soldiers and Air Force Institution (SSAFA), or the Royal British Legion (RBL). If the beneficiary is a serving soldier, a grant is processed through the unit welfare organisation. 

The trustees consider all grants paid to institutions over £25,000, which require trustee board approval, to be material in the context of the accounts. The total amount of grants paid over this amount in 2023 was 1, for £85,000, to the Army Benevolent Fund (2022: 1, for £85,000, to the Army Benevolent Fund). There were no other committed grants at 31 December 2023. No support costs have been allocated to the grants disclosed above although staff costs are allocated to general grant making activities per note 8 to the accounts. 

30 



## **The REME Charity** 

## **Notes to the financial statements** 

## **For the year ended 31 December 2023** 

## **13. Tangible fixed assets** 

|**Tangible fixed assets**|||||
|---|---|---|---|---|
|**Group**<br>**Cost**<br>At 1 January 2023<br>Additions in year<br>Disposals<br>Revaluations<br>At 31 December 2023<br>**Depreciation**<br>At 1 January 2023<br>Charge for the year<br>Disposals<br>At 31 December 2023<br>**Net book value**<br>**At 31 December 2023**<br>At 31 December 2022<br>**Charity**<br>**Cost**<br>At 1 January 2023<br>Additions in year<br>Disposals<br>Revaluations<br>At 31 December 2023<br>**Depreciation**<br>At 1 January 2023<br>Charge for the year<br>Disposals<br>At 31 December 2023<br>**Net book value**<br>**At 31 December 2023**<br>At 31 December 2022|**Yachts**<br>**£**<br>280,000<br>-<br>-<br>-<br>280,000<br>92,000<br>9,500<br>-<br>101,500<br>**178,500**<br>188,000<br>**Yachts**<br>**£**<br>280,000<br>-<br>-<br>-<br>280,000<br>92,000<br>9,500<br>-<br>101,500<br>**178,500**<br>188,000|**£**<br>964,585<br>10,317<br>(36,625)<br>-<br>938,277<br>515,921<br>77,930<br>(36,625)<br>557,226<br>**381,051**<br>448,664<br>**£**<br>168,417<br>5,460<br>(36,625)<br>-<br>137,252<br>74,317<br>13,857<br>(36,625)<br>51,549<br>**85,703**<br>94,100<br>**Furniture**<br>**and**<br>**equipment**<br>**Furniture**<br>**and**<br>**equipment**|**Corps**<br>**items**<br>**£**<br>680,141<br>9,600<br>(18,160)<br>(3,550)<br>668,031<br>-<br>-<br>-<br>-<br>**668,031**<br>680,141<br>**Corps**<br>**items**<br>**£**<br>680,142<br>9,600<br>(18,160)<br>(3,550)<br>668,032<br>-<br>-<br>-<br>-<br>**668,032**<br>680,142|**Total**<br>**£**<br>**1,924,726**<br>**19,917**<br>**(54,785)**<br>**(3,550)**|
|||||**1,886,308**|
|||||**607,921**<br>**87,430**<br>**(36,625)**|
|||||**658,726**|
|||||**1,227,582**|
|||||1,316,805|
|||||**Total**<br>**£**<br>**1,128,559**<br>**15,060**<br>**(54,785)**<br>**(3,550)**|
|||||**1,085,284**|
|||||**166,317**<br>**23,357**<br>**(36,625)**|
|||||**153,049**|
|||||**932,235**|
|||||962,242|



31 



## **The REME Charity** 

## **Notes to the financial statements** 

## **For the year ended 31 December 2023** 

## **14. Heritage assets** 

|At 1 January 2023<br>Additions<br>Disposals<br>Revaluations<br>**At 31 December 2023**|**2023**<br>2022<br>**£**<br>£<br>**2,340,077**<br>3,098,635<br>**35,840**<br>57,000<br>**(5,250)**<br>(815,558)<br>**(35,000)**<br>-<br>**2,335,667**<br>2,340,077<br>**The group**|**2023**<br>2022<br>**£**<br>£<br>**348,601**<br>386,151<br>**14,240**<br>24,000<br>**-**<br>(61,550)<br>**-**<br>-<br>**362,841**<br>348,601<br>**The charity**|
|---|---|---|



All heritage assets are deemed to be measured at valuation. The majority of heritage assets are donated items which are recognised on receipt at valuation. There is insufficient data available to disclose those assets measured at cost however the amount held at cost is a minor proportion of the total heritage assets. 

During the prior year, the REME Charity and the REME Museum de-recognised all heritage assets with a value less than £3,000 and this resulted in an extraordinary disposal of heritage assets during the year ended 31 December 2022. This was a one-time occurrence and no assets were sold or scrapped. It dis not reflect any reduction in the overall value or ownership of the organisation's assets or its financial health. 

## **Five year summary of heritage asset transactions:** 

|**Additions:**<br>Purchases<br>Donations<br>Total additions<br>**Disposals:**<br>Carrying value<br>Proceeds<br>**Revaluations**|**2023**<br>**£**<br>**35,840**<br>**-**<br>**35,840**<br>**(5,250)**<br>**-**<br>**(35,000)**|2022<br>£<br>24,000<br>33,000<br>57,000<br>(815,558)<br>-<br>-|2021<br>£<br>21,460<br>59,900<br>81,360<br>(184,180)<br>-<br>68,145|2020<br>£<br>340<br>2,286<br>2,626<br>1,663<br>-<br>(9,539)|2019<br>£<br>-<br>5,981|
|---|---|---|---|---|---|
||||||5,981|
||||||580<br>-|
||||||609,667|



## **The REME Charity heritage assets** 

The REME Charity has gained a wide and varied collection of assets since its formation in 1942. These are held within the Messes, the Church, and the Headquarters and have either been donated by individuals or units, or gifted by the MoD. 

Where these assets are held primarily for their contribution to our nation’s culture and knowledge, they are classified as ‘heritage assets’. Other assets are of significance to the Corps but are not held as heritage assets. These items were reclassified as non-depreciable tangible fixed assets during 2021. 

32 



## **The REME Charity** 

## **Notes to the financial statements** 

## **For the year ended 31 December 2023** 

## **14. Heritage assets (continued)** 

## **The REME Charity heritage assets (continued)** 

Further detail on the recognition and valuation of these assets is given in note 1(l). 

## **The REME Museum heritage assets** 

The REME Museum of Technology was established in 1958 to house and preserve the heritage of the Corps of Royal Electrical and Mechanical Engineers. The Museum aims to promote a broader understanding of the functions of the Corps, its interaction with society and its role in providing equipment engineering support to the Army. It also provides an information resource for members of the Corps, researchers, educationalists and general public. 

The collection which has been built up over many years reflects the wide range of equipment for which the Corps is responsible including tanks, weapons, helicopters and electronic equipment. The Museum also houses and maintains a comprehensive collection of medals, uniforms, documents and pictorial records covering the many activities of the Corps since its formation in October 1942. 

The Museum follows a strict acquisition policy and only accepts items which either relate to the heritage of the Corps or clearly illustrate the changes in engineering and repair techniques associated with equipment responsibilities. Most of the items held are either donated to the Museum or gifted by the Ministry of Defence. Items are recorded at cost when an acquisition has been made by purchase. 

The valuation of such a diverse and varied collection and the lack in many cases of comparable market values has meant an equally diverse approach in obtaining valuations. It has been necessary to use many sources of valuation expertise. These have included professional valuations as in the case of the small arms collection, guidance from the National Army Museum and recourse to the many web sites, trade magazines, auction houses and professional catalogues covering different aspects of the collection. 

During 2013, the museum director revisited the valuations of the collections with the assistance of specialist publications and experts in the various items. During 2019 the vehicles collection was revalued using the same methods. 

A full inventory is maintained of all items accessioned into the collection including valuations on the Museum's collection management database. Information provided includes the provenance and acquisition source of each item. 

## **15. Mixed motive investments** 

|At 1 January 2023<br>Revaluations<br>Disposals<br>**At 31 December 2023**|**2023**<br>2022<br>**£**<br>£<br>**43,224**<br>43,224<br>**490**<br>**(2,360)**<br>-<br>**41,354**<br>43,224<br>**The group**|**2023**<br>2022<br>**£**<br>£<br>**43,224**<br>43,224<br>**490**<br>**(2,360)**<br>-<br>**41,354**<br>43,224<br>**The charity**|**2023**<br>2022<br>**£**<br>£<br>**43,224**<br>43,224<br>**490**<br>**(2,360)**<br>-<br>**41,354**<br>43,224<br>**The charity**|
|---|---|---|---|
||||43,224|



33 



## **The REME Charity** 

## **Notes to the financial statements** 

## **For the year ended 31 December 2023** 

## **15. Mixed motive investments (continued)** 

Mixed motive investments represent the charity's collection of fine art, held by the charity primarily to contribute to the esprit de corps activities of the messes, but which is also held for its potential investment growth. The fine art collection is held at fair value and will be revalued every 5 years. 

## **16. Fixed asset investments (group and charity)** 

|**Blackrock Armed Forces Growth and Income Fund - unlisted**<br>Market value at 1 January 2023<br>Net gains / (losses)<br>As at 31 December 2022<br>**Sarasin Funds - all listed**<br>Market value at 1 January 2023<br>Additions<br>Disposals<br>Net gains / (losses)<br>As at 31 December 2023<br>**Total investments**<br>Investments are comprised of:<br>Listed investments<br>Unlisted investments|**2023**<br>**£**<br>**262,437**<br>**771**<br>**263,208**<br>**12,800,750**<br>**540,407**<br>**-**<br>**742,955**<br>**14,084,112**<br>**14,347,320**<br>**2023**<br>**£**<br>**14,084,112**<br>**263,208**<br>**14,347,320**|2022<br>£<br>304,973<br>(42,536)|
|---|---|---|
|||262,437|
|||14,206,994<br>986,669<br>(586,669)<br>(1,806,244)<br>12,800,750|
|||13,063,187|
|||2022<br>£<br>12,800,750<br>262,437|
|||13,063,187|



Included within investments are amounts held on behalf of other REME organisations, as follows: 

|**2023**<br>2022<br>**%**<br>%<br>REME Benevolent Fund<br>**0.3419%**<br>0.3445%<br>REME HQ Officers Mess<br>**3.6266%**<br>3.6536%<br>REME Association<br>**2.9027%**<br>2.9243%<br>REME Museum<br>**2.3541%**<br>2.3717%<br>REME Institution<br>**3.7537%**<br>3.0350%|**2023**<br>2022<br>**£**<br>£<br>**48,159**<br>44,098<br>**510,768**<br>467,697<br>**408,815**<br>374,341<br>**331,552**<br>303,594<br>**528,668**<br>388,506<br>**1,827,962**<br>1,578,236<br>**Market value**|**2023**<br>2022<br>**£**<br>£<br>**48,159**<br>44,098<br>**510,768**<br>467,697<br>**408,815**<br>374,341<br>**331,552**<br>303,594<br>**528,668**<br>388,506<br>**1,827,962**<br>1,578,236<br>**Market value**|
|---|---|---|
|||1,578,236|



34 



## **The REME Charity** 

## **Notes to the financial statements** 

## **For the year ended 31 December 2023** 

## **17. Investment property** 

The charity sold Judnick House, a residential investment property, during the prior year. Prior to disposal, the property was held at fair value based on a desktop market valuation obtained from an estate agent, Frank Schippers, dated 2 December 2021. 

|Market value at 1 January 2023<br>Disposal proceeds<br>Realised gain<br>**Market value at 31 December 2023**<br>**Stock**<br>REME Trading stock for resale<br>Finished goods including wine|**2023**<br>2022<br>**£**<br>£<br>**74,385**<br>63,737<br>**158,477**<br>150,978<br>**232,862**<br>214,715<br>**The group**|**2023**<br>2022<br>**£**<br>£<br>**-**<br>460,000<br>**-**<br>(506,246)<br>**-**<br>46,246<br>**-**<br>-<br>**2023**<br>2022<br>**£**<br>£<br>**-**<br>-<br>**158,477**<br>150,978<br>**158,477**<br>150,978<br>**The charity**|2022<br>£<br>460,000<br>(506,246)<br>46,246|
|---|---|---|---|
||||-|
||||150,978|



## **18. Stock** 

## **19. Debtors** 

|Trade debtors<br>Prepayments and accrued income<br>Donation from REME Trading<br>Other debtors<br>Funds held as an agent (note 21)<br>**Total debtors**|**2023**<br>2022<br>**£**<br>£<br>**6,112**<br>3,505<br>**147,257**<br>159,194<br>**-**<br>-<br>**2,195**<br>1,387<br>**81**<br>-<br>**155,645**<br>164,086<br>**The group**|**2023**<br>2022<br>**£**<br>£<br>**5,935**<br>2,090<br>**129,551**<br>94,752<br>**35,213**<br>34,050<br>**2,195**<br>1,387<br>**81**<br>-<br>**172,975**<br>132,279<br>**The charity**|**2023**<br>2022<br>**£**<br>£<br>**5,935**<br>2,090<br>**129,551**<br>94,752<br>**35,213**<br>34,050<br>**2,195**<br>1,387<br>**81**<br>-<br>**172,975**<br>132,279<br>**The charity**|
|---|---|---|---|
||||132,279|



35 



## **The REME Charity** 

## **Notes to the financial statements** 

## **For the year ended 31 December 2023** 

## **20. Creditors : amounts due within 1 year** 

|**Creditors : amounts due within 1 year**||||
|---|---|---|---|
|Trade creditors<br>Social security and other taxes<br>Accruals<br>Other creditors<br>Deferred income<br>Funds received as an agent (note 21)<br>Intercompany due to REME Museum<br>**Due in more than 1 year:**<br>Other creditors|**2023**<br>2022<br>**£**<br>£<br>**26,088**<br>36,545<br>**16,004**<br>31,571<br>**33,964**<br>15,584<br>**11,549**<br>30,500<br>**6,344**<br>2,087<br>**-**<br>30,064<br>**-**<br>-<br>**93,949**<br>146,351<br>**13,104**<br>13,104<br>**The group**|**2023**<br>2022<br>**£**<br>£<br>**26,088**<br>36,545<br>**11,939**<br>24,109<br>**21,873**<br>17,793<br>**9,183**<br>16,207<br>**6,344**<br>2,087<br>**-**<br>30,064<br>**269,908**<br>167,382<br>**345,335**<br>294,187<br>**13,104**<br>13,104<br>**The charity**||
||||294,187|
||||13,104|



## **21. Funds held as an agent** 

During the year, the charity acted as custodian trustee for funds received by some of the sports clubs and Messes' linked to the REME charity. An analysis of the funds received and paid by the charity is given below. Funds held at year end 2023 are detailed in the debtors note (note 19), funds held at the year end 2022 are detailed in creditors (note 20). 

|£<br>REME sports<br>7,885<br>REME Institution<br>1,107<br>REME Officers' Mess<br>2,052<br>REME Sergeants' Mess<br>1,200<br>Other organisations<br>17,820<br>At 31 December 2023<br>30,064<br>Funds held at<br>1 January<br>2023|£<br>1,000<br>74,410<br>2,620<br>-<br>6,764<br>84,794<br>Funds<br>received|£<br>**£**<br>(7,885)<br>**1,000**<br>(74,872)<br>**645**<br>(2,052)<br>**2,620**<br>(1,200)<br>**-**<br>(28,930)<br>**(4,346)**<br>(114,939)<br>**(81)**<br>Funds<br>paid<br>**Funds held at**<br>**31 December**<br>**2023**|£<br>**£**<br>(7,885)<br>**1,000**<br>(74,872)<br>**645**<br>(2,052)<br>**2,620**<br>(1,200)<br>**-**<br>(28,930)<br>**(4,346)**<br>(114,939)<br>**(81)**<br>Funds<br>paid<br>**Funds held at**<br>**31 December**<br>**2023**|
|---|---|---|---|
||||**(81)**|



36 



## **The REME Charity** 

## **Notes to the financial statements** 

## **For the year ended 31 December 2023** 

|**22.**<br>**Analysis of group net assets between funds**<br>£<br>Tangible fixed assets<br>605,025<br>Heritage assets<br>362,841<br>Mixed motive investments<br>41,354<br>Fixed asset investments<br>1,827,962<br>Current assets<br>1,556,898<br>Current liabilities<br>-<br>Creditors due after more than 1 year<br>-<br>**Net assets at 31 December 2023**<br>**4,394,080**<br>**Prior year comparative**<br>Restricted<br>funds<br>£<br>Tangible fixed assets<br>601,425<br>Heritage assets<br>348,601<br>Mixed motive investments<br>43,224<br>Fixed asset investments<br>1,595,310<br>Investment property<br>-<br>Current assets<br>1,594,329<br>Current liabilities<br>-<br>Creditors due after more than 1 year<br>-<br>**Net assets at 31 December 2022**<br>4,182,889<br>Restricted<br>funds|£<br>295,348<br>1,972,826<br>-<br>-<br>545,405<br>-<br>-<br>**2,813,579**<br>Designated<br>funds<br>£<br>354,563<br>1,991,476<br>-<br>-<br>-<br>378,158<br>-<br>-<br>2,724,197<br>Designated<br>funds|£<br>327,209<br>-<br>-<br>12,519,358<br>(1,435,044)<br>(93,949)<br>(13,104)<br>**11,304,470**<br>General<br>funds<br>£<br>360,817<br>-<br>-<br>11,467,877<br>-<br>(711,870)<br>(146,351)<br>(13,104)<br>10,957,369<br>General<br>funds|**£**<br>**1,227,582**<br>**2,335,667**<br>**41,354**<br>**14,347,320**<br>**667,259**<br>**(93,949)**<br>**(13,104)**<br>**Total**<br>**funds**|
|---|---|---|---|
||||**18,512,129**|
||||Total<br>funds<br>£<br>1,316,805<br>2,340,077<br>43,224<br>13,063,187<br>-<br>1,260,617<br>(146,351)<br>(13,104)|
||||17,864,455|



37 



## **The REME Charity** 

## **Notes to the financial statements** 

## **For the year ended 31 December 2023** 

## **23. Movements in funds** 

|**Restricted funds**<br>_CCT:_<br>Aliquot Shares<br>REME Connect: Afghanistan<br>_Linked entities:_<br>REME Benevolent Fund<br>HQ Officers Mess<br>REME Sports Association<br>REME Institution<br>REME Sergeants' Mess<br>_REME Museum:_<br>British Museum Project<br>**Total restricted funds**|£<br>1,595,310<br>12,299<br>-<br>1,709,772<br>10,986<br>765,256<br>86,941<br>2,325<br>4,182,889<br>At 1 January<br>2023|Income<br>£<br>-<br>17,500<br>51,613<br>96,864<br>132,407<br>86,541<br>51,593<br>-<br>436,518|£<br>-<br>(29,799)<br>(51,613)<br>(63,408)<br>(143,393)<br>(122,709)<br>(47,057)<br>-<br>(457,979)<br>Expenditure|Gains /<br>(losses)<br>£<br>95,451<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>95,451|£<br>**£**<br>137,201<br>**1,827,962**<br>-<br>**-**<br>-<br>**-**<br>-<br>**1,743,228**<br>-<br>**-**<br>-<br>**729,088**<br>-<br>**91,477**<br>-<br>**2,325**<br>137,201<br>**4,394,080**<br>Transfers<br>between funds<br>**At 31**<br>**December 2023**|
|---|---|---|---|---|---|



38 



## **The REME Charity** 

## **Notes to the financial statements** 

## **For the year ended 31 December 2023** 

## **23. Movements in funds (continued)** 

|**Total restricted funds**<br>_Designated funds:_<br>Museum - general<br>Museum - development<br>REME Trading<br>REME Yacht Club Hulls<br>_Total designated funds_<br>General funds<br>**Total unrestricted funds**<br>**Total funds**<br>Transfers between funds<br>**Unrestricted funds**|Income<br>Gains /<br>(losses)<br>£<br>£<br>£<br>£<br>£<br>**£**<br>4,182,889<br>436,518<br>(457,979)<br>95,451<br>137,201<br>**4,394,080**<br>2,090,471<br>303,204<br>(313,888)<br>(35,000)<br>130,644<br>**2,175,431**<br>467,334<br>94,640<br>(94,430)<br>-<br>-<br>**467,544**<br>56,392<br>182,958<br>(219,916)<br>-<br>21,170<br>**40,604**<br>110,000<br>-<br>-<br>-<br>20,000<br>**130,000**<br>2,724,197<br>580,802<br>(628,234)<br>(35,000)<br>171,814<br>**2,813,579**<br>10,957,369<br>1,480,396<br>(1,472,555)<br>648,275<br>(309,015)<br>**11,304,470**<br>13,681,566<br>2,061,198<br>(2,100,789)<br>613,275<br>(137,201)<br>**14,118,049**<br>17,864,455<br>2,497,716<br>(2,558,768)<br>708,726<br>-<br>**18,512,129**<br>Transfers between funds represent: cash injections into The REME Charity's investment portfolio, as<br>described below; the movement of group reserves between entities resulting from inter-group<br>transactions (see note 28); and contributions to the saving plan for the REME Hulls fund as described<br>below.<br>**At 31**<br>**December 2023**<br>Transfers<br>between funds<br>At 1 January<br>2023<br>Expenditure|
|---|---|



39 



## **The REME Charity** 

## **Notes to the financial statements** 

## **For the year ended 31 December 2023** 

## **23. Movements in funds (continued)** 

## **Purposes of restricted funds** 

Aliquot Shares 

REME Connect: Afghanistan 

Linked entities 

British Museum Project 

Museum - general 

Museum - development 

REME Trading 

REME Yacht Club Hulls 

The REME Charity’s investment portfolio was first created in 1985 from donations from a number of entities. Each of the entities is now inside the REME Charity and their percentage holding in the investment portfolio is expressed as an aliquot share holding. 

The project was created after the evacuation of Kabul in 2021. The project intends to create digital communities of support for REME veterans of Afghanistan and similar recent operations to make a meaningful difference to the veterans' and their families' lives. 

The REME Charity was formed from the REME Charities in 2016. The antecedent charities are linked via a Charity Commission Scheme and are; The REME Central Charitable Trust (296030) and the REME Benevolent Fund (246967). The REME Sports Association charity (246967/1) was linked to the REME Benevolent Fund, but it now linked to the REME Charity under the same scheme. Income in these funds represents donations specifically restricted to each area of the charity. Where total expenditure exceeds income available, expenditure is limited to the available restricted funds. 

This fund represents grant funding received from Money & Medals Network to fund training for the Museum Assistant Curator. 

The REME Museum is given an operating budget each year from the REME Charity. 

The REME Development fund is to provide funding to develop the Museum. It is not to be spent on administration, but purely on developing exhibits, attracting visitors and generally improving the visitor experience. 

The REME Trading Company operates the shop in the REME Museum and online. 

The REME Hulls fund was set up as a saving plan to purchase a new yacht every five years. £20k was deposited during the year. 

40 



## **The REME Charity** 

## **Notes to the financial statements** 

## **For the year ended 31 December 2023** 

## **23. Movements in funds (continued)** 

|**Prior period comparative**<br>**Restricted funds**<br>_CCT:_<br>Aliquot Shares<br>REME Connect: Afghanistan<br>_Linked entities:_<br>REME Benevolent Fund<br>HQ Officers Mess<br>REME Sports Association<br>REME Institution<br>REME Sergeants' Mess<br>_REME Museum:_<br>British Museum Project<br>**Total restricted funds**|At 1 January<br>2022<br>£<br>1,378,834<br>-<br>-<br>1,673,559<br>-<br>727,804<br>89,633<br>2,570<br>3,872,400|Income<br>£<br>-<br>17,500<br>21,969<br>91,865<br>35,000<br>89,639<br>50,981<br>-<br>306,954|£<br>-<br>(5,201)<br>(21,969)<br>(55,652)<br>(24,014)<br>(98,433)<br>(53,673)<br>(245)<br>(259,187)<br>Expenditure|Gains /<br>(losses)<br>£<br>216,476<br>-<br>-<br>-<br>-<br>46,246<br>-<br>-<br>262,722|£<br>£<br>-<br>1,595,310<br>-<br>12,299<br>-<br>-<br>-<br>1,709,772<br>-<br>10,986<br>-<br>765,256<br>-<br>86,941<br>-<br>2,325<br>-<br>4,182,889<br>Transfers<br>between funds<br>At 31 December<br>2022|
|---|---|---|---|---|---|



41 



## **The REME Charity** 

## **Notes to the financial statements** 

## **For the year ended 31 December 2023** 

## **23. Movements in funds (continued) - prior year comparative** 

|**Total restricted funds**<br>_Designated funds:_<br>Museum - general<br>Museum - development<br>REME Trading<br>REME Yacht Club Hulls<br>_Total designated funds_<br>General funds<br>**Total unrestricted funds**<br>**Total funds**<br>**Unrestricted funds**|At 1 January<br>2022<br>£<br>3,872,400<br>2,842,791<br>467,634<br>61,700<br>90,000<br>3,462,125<br>13,266,382<br>16,728,507<br>20,600,907|Income<br>£<br>306,954<br>354,621<br>104,509<br>172,440<br>-<br>631,570<br>1,455,018<br>2,086,588<br>2,393,542|£<br>(259,187)<br>(1,106,941)<br>(104,809)<br>(177,748)<br>-<br>(1,389,498)<br>(1,678,775)<br>(3,068,273)<br>(3,327,460)<br>Expenditure|Gains /<br>(losses)<br>£<br>262,722<br>-<br>-<br>-<br>-<br>-<br>(2,065,256)<br>(2,065,256)<br>(1,802,534)|£<br>£<br>-<br>4,182,889<br>-<br>2,090,471<br>-<br>467,334<br>-<br>56,392<br>20,000<br>110,000<br>20,000<br>2,724,197<br>(20,000)<br>10,957,369<br>-<br>13,681,566<br>-<br>17,864,455<br>Transfers<br>between funds<br>At 31 December<br>2022|£<br>£<br>-<br>4,182,889<br>-<br>2,090,471<br>-<br>467,334<br>-<br>56,392<br>20,000<br>110,000<br>20,000<br>2,724,197<br>(20,000)<br>10,957,369<br>-<br>13,681,566<br>-<br>17,864,455<br>Transfers<br>between funds<br>At 31 December<br>2022|
|---|---|---|---|---|---|---|
|||||||2,724,197|
|||||||10,957,369|
|||||||13,681,566|
|||||||17,864,455|



42 



## **The REME Charity** 

## **Notes to the financial statements** 

## **For the year ended 31 December 2023** 

## **24. Financial instruments at fair value** 

|Financial assets measured at fair value|**2023**<br>2022<br>**£**<br>£<br>**14,347,320**<br>13,063,187<br>**The group**|**2023**<br>2022<br>**£**<br>£<br>**14,347,320**<br>13,063,187<br>**The charity**|
|---|---|---|



Financial assets measured at fair value comprise fixed asset investments. 

## **25. Operating lease commitments** 

The charity held no operating lease commitments in the current or prior period. 

## **26. Capital commitments** 

At 31 December 2023, capital expenditure commitments were as follows: 

|_Committed but not provided for in the accounts:_<br>Conspicuous Gallantry Cross medal purchase|**2023**<br>**£**<br>**150,000**|2022<br>£<br>-|
|---|---|---|



At 31 December 2023, the charity had entered into an agreement to complete the purchase of a Conspicuous Gallantry Cross medal. The value of the purchase is funded by awarded grants which will be recognised in line with the purchase of the medal. There were no further capital commitments entered into in the post year end period. 

## **27. Related party transactions** 

The REME Charity is the sole corporate trustee and parent charity of the Corps of Royal Electrical and Mechanical Engineers Museum (charity registration no. 272740). During the year the REME Charity paid donations totalling £121,207 (2022: £149,292) to the REME Museum. The REME Charity operates payroll and manages transactions on behalf of the Museum. At the year end £269,908 was due to the REME Museum (2022: £167,382). 

The REME Charity also has control of the REME Trading Company Limited (company registration no. 10258502). The Operations Manager and one of the trustees of the REME Charity make up the board of directors of the REME Trading Company. Amounts owed to the REME Charity at 31 December 2023 were £35,213 (2022: £34,050). The REME charity provided funding of £40,000 to the REME Trading company in 2023 (2022: £nil). The REME Trading Company donated £40,172 (2022: £52,047) and made sales of goods from the shop totalling £21,680 (2022: £39,606) to the REME Charity during the year. 

## **28. Subsidiary undertakings** 

_The Corps of Royal Electrical and Mechanical Engineers Museum_ 

The consolidated financial statements include the results of The Corps of Royal Electrical and Mechanical Engineers Museum (the REME Museum), charity number 272740. The REME Charity is deemed to have control over the REME Museum by having sole corporate trusteeship. The REME Museum contributes to the esprit de corps objects of The REME Charity. 

43 



## **The REME Charity** 

## **Notes to the financial statements** 

## **For the year ended 31 December 2023** 

## **28. Subsidiary undertakings (continued) Results for the period** 

|Gross income<br>Expenditure<br>**Results for the year (excluding gains / losses)**<br>**Net assets**<br>Assets<br>Liabilities<br>**Total museum funds**|**2023**<br>**£**<br>**528,488**<br>**(488,401)**<br>**40,087**<br>**2023**<br>**£**<br>**2,655,171**<br>**(9,871)**<br>**2,645,300**|2022<br>£<br>536,058<br>(1,208,930)|
|---|---|---|
|||(672,872)|
|||2022<br>£<br>2,649,279<br>(9,066)|
|||2,640,213|



## _The REME Trading Company Limited_ 

The consolidated financial statements include the results of The REME Trading Company Limited (REME Trading), company number 10258502. REME Trading was incorporated to operate the cafe and shop situated within the REME museum. The REME Charity is deemed to have control over REME Trading, the directors of REME Trading being key management personnel of The REME Charity. 

## **Results for the period** 

|Turnover<br>Cost of sales<br>Gross profit<br>Other operating income<br>Administrative expenses<br>Operating profit / (loss)<br>Tax on profit / (loss)<br>Profit for financial year|**2023**<br>**£**<br>**204,639**<br>**(117,549)**<br>**87,090**<br>**40,000**<br>**(86,938)**<br>**40,152**<br>**-**<br>**40,152**|2022<br>£<br>212,046<br>(113,538)|
|---|---|---|
|||98,508<br>-<br>(67,198)|
|||31,310<br>-|
|||31,310|



44 



## **The REME Charity** 

## **Notes to the financial statements** 

## **For the year ended 31 December 2023** 

## **28. Subsidiary undertakings (continued)** 

The aggregate of the assets, liabilities and funds was: 

|**Subsidiary undertakings (continued)**<br>The aggregate of the assets, liabilities and funds was:|||
|---|---|---|
|Assets<br>Liabilities<br>**Total reserves**|**2023**<br>**£**<br>**84,807**<br>**(43,864)**<br>**40,943**|2022<br>£<br>85,556<br>(44,593)|
|||40,963|



## **29. Parent charity** 

The parent charity's gross income and the results for the year are: 

|Gross income<br>Surplus / (deficit) for the year (excluding gains / losses)|**2023**<br>**£**<br>**1,957,085**<br>**(101,540)**|2022<br>£<br>1,887,254<br>(239,887)|
|---|---|---|



45