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2021-12-31-accounts

Charity number: 1178311

The Royal Engineer Yacht Club

Trustees' report and financial statements for the year ended 31 December 2021

The Royal Engineer Yacht Club

Contents Page
Reference and administrative details of the Charity, its Trustees and Advisers 1
Trustees’report 2-8
Independent auditor's report 9-12
Statement of financial activities 13
Balance sheet 14
Notes to the financial statements 15-23

The Royal Engineer Yacht Club

Trustees’Report for the year ended 31 December 2021

Trustees

Lieutenant Colonel JGJ Robinson Lieutenant Colonel M E Johnson-Ferguson Lieutenant Colonel C W Battey Brigadier (Retired) A P Carruth Lieutenant General R Wardlaw OBE Colonel (Retired) R C Hendicott MBE Lieutenant Colonel (Retired) A F M Douglas

Commodore (Appointed 24/11/21) (1)

Commodore (Retired 02/08/21) (1)

Vice-Commodore (Appointed 01/11/20) (1)

Trustee (Retired 29/10/21) Chair (Retired 29/10/21)

Trustee (Elected 04/10/19)

Trustee (Elected 01/11/20) Chair (Appointed 29/10/21)

Trustee (Elected 29/10/21)

(1) Ex-officio, normally appointed for 3 years.

Non Trustee Appointment

Lieutenant Colonel (Retired) J D Lewis

Secretary (Appointed 01/09/20)

Principal Office

Royal Engineer Yacht Club The Ravelin Building Brompton Barracks Dock Road Chatham Kent ME4 4UG

Independent Auditor

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

Bankers

Lloyds plc Piccadilly Branch PO Box 1000 London BX1 1LT

Page 1

The Royal Engineer Yacht Club

Trustees’Report for the year ended 31 December 2021

TRUSTEES REPORT

The Trustees present their annual report and audited financial statements for the year ended 31 December 2021. The financial statements have been prepared in accordance with the accounting policies set out in note 2 of the accounts and comply with the Charities Act 2011 and the Charities SORP 2012. In doing so they comply with the Statement of Trustees’Responsibilities shown below.

Trustees consider that in preparing the financial statements they have taken into account all information that could reasonably be expected to be available (including levels of reserves held); thus the going concern basis of accounting is deemed appropriate and there are no material uncertainties.

Statement of Trustees’Responsibilities

The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of its income and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Charity’s Constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

BACKGROUND

The Royal Engineer Yacht Club (REYC) was founded in 1846, making it one of the senior yacht clubs in the United Kingdom. Full membership is open to all serving and ex-serving Royal Engineers, with non-voting membership available to individuals (civilian and military) who are closely associated with the Corps of Royal Engineers or the Club and who support its Object.

ORGANISATION AND GOVERNANCE

Organisation

REYC is a Charitable Incorporated Organisation (Association Model) (CIO (AM)) registered with the Charity Commission on 9 May 2018. Its governing document is its Constitution.

The Trustees manage the Club according to its Constitution and make Rules necessary for the proper conduct and management of the CIO. The Rules delegate day to day management to the Main Committee chaired by the Commodore, who is supported by the Vice Commodore and three Rear Commodores responsible for Inshore, Offshore and Regions activities. It is the practice of the Club that any new or amended Rules shall be brought to the attention of Members at a General Meeting.

Page 2

The Royal Engineer Yacht Club

Trustees’Report for the year ended 31 December 2021

Accountancy support is provided by Royal Engineer Corps’Funds at Chatham. The audited accounts accompanying this Trustees’Annual Report cover the year from 1 January to 31 December 2021, which is the Club’s third full year as a CIO.

Recruitment and Appointment of Trustees

There are three Trustees elected by Full Members at a General Meeting, two of whom are required to have served previously as Flag Officers of REYC. There are two ex-officio appointments, the Commodore and Vice Commodore, also elected by Members at a General Meeting.

Trustee Induction and Training

Trustees are all provided with the necessary documents on appointment and suitably trained for their charitable role. Their experience of sailing provides them with knowledge to support sailing activities.

OUR CHARITABLE OBJECT

Our Charitable Object is, for the public benefit, the promotion of the efficiency of the armed forces of the Crown by:

ACTIVITIES AND ACHIEVEMENTS IN 2021

The Trustees confirm that they have paid due regard to the Charity Commission of England and Wales guidance on public benefit when deciding what activities the charity should undertake.

The Club’s activities are conducted as follows:

Despite Covid restrictions, all divisions are to be congratulated for active participation in training, competition, adventurous expeditions and cruising. Our activities contributed substantially to the general well-being of serving soldiers, whether Club members or not. Other members took part to support the Corps and mentor less experienced people.

Offshore Division

The 2021 offshore sailing season got off to a relatively slow start due to the gradual easing of Covid pandemic restrictions at the start of the year. Despite this slow start our two offshore yachts, Trojan and Right Royal, were used extensively in 2021 and provided some excellent opportunities to get out on the water both for serving soldiers and the wider military sailing community. Demand for the yachts was high, capitalising on a pent up desire to get back on the water during the Covid pandemic.

Page 3

The Royal Engineer Yacht Club

Trustees’Report for the year ended 31 December 2021

The high point of the 2021 season was Trojan’s successful campaign to complete the Fastnet Race, maintaining the Club’s unique record of participation in every race since the event started in 1925. The Fastnet campaign was led and skippered by WO2 Jason West and included entry into five of the qualifying RORC races; the Myth of Malham, Morgan Cup, De Guingand Bowl, St Malo Race and the Channel Race. In addition the crews completed pre-requisite medical and sea safety training courses. The format for 2021 was longer than in previous years with a finish in Cherbourg rather than in Plymouth and challenging wind and tide conditions. The race started with very strong winds in the Solent and finished with little wind but strong tides off Cherbourg making it very much a test of perseverance.

The Army Offshore Regatta (AOR) took place in September 2021 rather than its normal slot earlier in the season. The club won in both the IRC and Cruising Divisions and also won the best novice skipper prize. Although the club didn’twin the coveted Dolphin trophy for overall points, it was a close fought regatta and the club put in a very good performance as the only club to enter yachts in all three categories. The Lymington Meet was also well attended with a strong mix of serving and retired crews; the RLymYC retained the Carlier Trophy by a fine margin in the fleet racing format despite a very strong performance by Trojan.

The RE Sail Training Week (RESTW) resumed in 2021 after a pause in 2020. The event was well supported by RE units and introduced a large number of first-time sailors to the sport as well as building mileage and confidence for some of the more experienced skippers and crews. The plan for 2022 is to build on the success of 2021 and to run Inshore and Offshore STWs concurrently in order to provide the opportunity for greater interaction between the two Divisions and to encourage cross-fertilisation of talent.

The decision was taken at the 2020 AGM to continue with a two-yacht offshore fleet. This will see Trojan retained as the Club’s racing yacht, whilst Right Royal was sold off in early 2022 to be replaced in due course with a similar cruising yacht, assisted by an Army Sailing Association-administered Nuffield Trust grant, and reserves in our Hulls Fund. The exact age, nature and specification of the new yacht will be decided by a yacht replacement subcommittee and it is expected that a new yacht will be found and purchased during the 2022 season.

Inshore Division

Dinghy Sailing, Windsurfing and Kitesurfing restarted quickly after pandemic restrictions eased and benefited greatly from the enthusiasm of a small pool of volunteers and several new members. As well as investing heavily in soldiers at 1 RSME, recruiting expanded with new posters and REYC branded team clothing. Investment in RE dinghy sailing over recent years has resulted in a growth in participation and an increasingly competitive race team. To consolidate these gains, regional hubs across the UK, with affiliations to local sailing clubs, will be established in 2022.

With support from REYC, 1 RSME Regiment organised structured sail training at Medway Yacht Club, delivering a total of 108 sail training sessions on Wednesday afternoons. The racing team upgraded and tuned the REYC Laser 2000 dinghies (Stan and Townsend) and competed strongly in two National Championships at Torbay (6th and 32nd) and Thorney Island (9th and 14th). In team racing, they successfully defended the Lagos Trophy (for the fourth time in a row), beating off strong competition from the Infantry and REME teams.

Although there are several talented and elite windsurfers and kiters in the Corps, further investment, recruitment effort and training are required to grow participation and establish a foundation of volunteers and instructors. The RE Windsurfing team came 2nd in the Army Windsurfing Championships in Sep 21, pipped to the post by a strong AMS team. They secured strong individual results, finishing 4th & 5th overall. Capt Dave Curry was selected for an Army Elite Athlete Scholarship for iQ Foil Windsurfing. He competed strongly in several national events and attended the iQ Foil World Championships in Switzerland in August 21. A few intermediate windsurfers have been introduced to iQ Foil Windsurfing using the REYC held equipment.

The newest discipline, Kitesurfing, was formally established as part of the REYC in early 2020. On the back of a superb overseas sports visit in late 2020, team members participated in Army competitions and delivered an inclusive UK training event. In Nov 21, six RE kiters from across the UK met at RMB Chivenor in North Devon. Despite light winds, a newly qualified instructor from 23 Engr Regt provided some great tips and techniques for kiters to practice in the waves. They left feeling invigorated and determined to run more UK training events and an overseas expedition in 2022.

Page 4

The Royal Engineer Yacht Club

Trustees’Report for the year ended 31 December 2021

Regions Division

The Regions Division successfully re-instated the annual Meet at Lymington, though delayed to September because of Covid restrictions. We expect to revert to a Spring Meet in 2022.

The RE Sail Training Week was supported by retired members sailing in company with the sail training fleet providing advice, setting courses and a Skippers Quiz.

Development of the Chatham Branch moorings and facilities has been progressing slowly since AGM 2020. Further development at Chatham will be contingent on the production of a business case considering whether the Branch can be financially self-supporting, managerially sustainable, and contributes effectively to our Charitable Object.

Central Club Activities

Club Administration. During 2021, the Main Committee selected Sailing Club Manager (SCM) as the preferred solution to improve administration, and work is now under way to implement it. The new system will be rolled out progressively covering, membership, communications, chartering, events and voting.

Strategic Direction. A 10 Year Strategic Plan, REYC Strategy 2021, has been produced which is to be implemented by the Main Committee from 2022. Trustees will monitor progress of activities to confirm they conform with Strategic Goals and our Charitable Object.

Annual Dinner. The Annual Dinner in Chatham, where prizes, Corps colours and awards are presented had to be cancelled. It provides an opportunity for all members of the Club to come together and we will look for alternative options for 2022 at more cost-effective venues, probably closer to our south coast sailing centre.

Key Appointments. All appointments are voluntary. With the Army shrinking, individual commitments are growing. It is increasingly difficult for serving members to administer the Club. The preference is for serving members to hold the majority of appointments in order to promote succession planning based on knowledge, but we are considering non-serving members taking up key roles which cannot be vacant. A retired member is now Hon Secretary and we will shortly do the same for the role of Hon Treasurer. Retired members will be encouraged to support and mentor serving personnel in Club appointments and provide cover when they are deployed on operations.

Overall Activity Days. The breakdown for the 2021 season in terms of ‘person sailing days’using REYC owned yachts, dinghies and boards is as follows:

Total Training Days
Inshore 184
Offshore 554
Total 738

Unit sponsored adventure training and the individual use of JSASTC yachts and facilities, together with larger expeditions, are not shown here. It should be noted that these activities are often enabled by the Club: expeditions are either led and organised by Club Members or indirectly supported via experience and qualifications of individuals developed through use of REYC assets.

2021 FINANCIAL REVIEW

Principal Funding

REYC’s income comes from Member subscriptions, voluntary donations, Royal Engineer Corps’grants, and grants provided through the Army Sailing Association, e.g. Army Welfare and Nuffield Trust.

The Club remains solvent. The financial plan for all divisions of the Club is reviewed at least annually to better inform any decisions to change spending, review the yacht replacement plan, and to support bids for external grants.

Page 5

The Royal Engineer Yacht Club

Trustees’Report for the year ended 31 December 2021

The intention to migrate the Chatham Branch account to management with all other Club funds by the Corps Treasurer has not been concluded and will be a priority for early 2022.

Reserves Policy

REYC has a 12 Year Financial Plan, reviewed annually, reflecting income and expenditure including equipment replacement funded through the Hulls Fund and other sources. We intend to align this with the 10 year period of our Strategy.

REYC’s reserves policy is to maintain a minimum of 6 months’operating capital held as cash.

The Club invests the balance of its cash in a low risk, interest earning vehicle. This will be reviewed in 2022 to ensure we are investing as productively as possible.

Insurance

Following a review of risks and activities, with advice from the Royal Yachting Association, REYC updated its insurance arrangements to ensure proper cover and transparency. This led to an increase in both cover and cost for insurance. The Trustees are satisfied that appropriate policies are now in place but will continue to seek best value for money.

Balance Sheet

The accumulated funds increased by £73,693 to £417,268 (2020: decreased by £17,438 to £343,575). This increase is accounted for largely by the increase in value of our capital assets - our yachts - which is very much at the whim of the used yacht market, and by the inclusion of the capital value of Club silver, shown on our balance sheet for the first time this year at the auditors’request.

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

Fund Designation

The Club maintains one Unrestricted, four Designated and two Restricted Funds.

Page 6

The Royal Engineer Yacht Club

Trustees’Report for the year ended 31 December 2021

OBSERVATIONS ON THE FINANCIAL STATEMENT

The Trustees make the following observations:

Principal Risks and Uncertainties

Trustees maintain a Risk Register of the strategic, business and operational risks to which the Charity is exposed and receive regular updates from the Main Committee.

Two major risks associated with the Offshore Division materialised this year. First, early in 2021 the Club was notified that provision of bosuns by the Corps would not be continued beyond spring 2022. Initial work was undertaken by the Main Committee to address this, but it was quickly realised that maintenance and handling of charters across the offshore fleet would be untenable in their current form. The Acting Commodore commissioned a study to look at alternatives, including the possibility that the Club may no longer own its own yachts. The Trustees endorsed the excellent work carried out by the study group and supported the final short-listing of 2 options; Club-employed bosun/s, or a yacht management company. These will be developed further in early 2022.

The second risk materialised whilst the offshore study was under way when the imminent closure of the berths and shore facilities at Dolphin Pool was announced. Quick reaction by the Main and Offshore Committees has secured one berth for Trojan at the Hornet Services Sailing Club (HSSC) and another berth is expected to be available for the replacement of Right Royal. The availability of the facilities at HSSC is now linked with the final solution for maintenance and day-to-day management of the offshore fleet. Detailed work continues, but the expectation is that two REYC yachts will be berthed at HSSC. The preferred outcome is that the Club can form a partnership with HSSC to help manage our yachts. This may take some time to

1 Cost neutral captured under Note 3 and 11.

Page 7

The Royal Engineer Yacht Club

Trustees’Report for the year ended 31 December 2021

arrange and an alternative solution for yacht management may be required for the initial period as the Corps bosuns are withdrawn. The new arrangements are expected to be affordable, but more expensive and a review of the charter rates will be undertaken prior to the 2022 season. The Trustees noted that current charter rates are below those of other service yacht clubs.

Plans for the future

The Trustees will continue to support the objectives of the Charity for the foreseeable future.

CONCLUSION

Since becoming a Charitable Incorporated Organisation our focus has been on accounting and auditing arrangements, introducing new management systems, managing risk associated with our Offshore fleet, and setting strategic direction for the Club. Much of this has been done whilst grappling with the challenges of Covid 19. We now have firm foundations in place and Trustees now expect to focus on developing sailing, growing the Club and strengthening our relationship with the serving Corps.

Approved by the Trustees on 25 May 2022 and signed on their behalf

Colonel (Retd) R C Hendicott MBE Chair, Board of Trustees Royal Engineer Yacht Club

Page 8

Independent auditor’s report to the Trustees of The Royal Engineer Yacht Club

We have audited the financial statements of The Royal Engineer Yacht Club (the ‘charity) for the year ended 31 December 2021 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

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

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

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

9

Independent Auditor’s report to the Trustees of The Royal Engineers Yacht Club (continued)

Other information

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

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 statement 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 the fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

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

Respective responsibilities of Trustees and auditor

As explained more fully in the Trustees' responsibilities statement, the Trustees are responsible for the preparation of financial statements which give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements 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 ISA’s (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence economic decisions of users taken on the basis of these financial statements.

10

Independent Auditor’s report to the Trustees of The Royal Engineers Yacht Club (continued)

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

Capability of the audit in detecting irregularities, including fraud

The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks.

Based on our understanding of the charity and sector, and through discussion with the directors and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and the Statement of Recommended Practice. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Audit procedures performed by the audit engagement team included:

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

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

11

Independent Auditor’s report to the Trustees of The Royal Engineers Yacht Club (continued)

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

Use of our report

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

Kreston Reeves LLP

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

Date: 31 May 2022

Kreston Reeves LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

12

The Royal Engineer Yacht Club

Statement of financial activities for the year ended 31 December 2021

Note
Income and endowments from:
Donations & Legacies
3
Subscriptions
4
Charter Hire
5
Grants
6
Other Income
7
Investment Income
8
Total Income
Expenditure on:
Charitable activities
10
Total Expenditure
Net income / (expenditure) before
revaluations
Gains / (losses) on revaluations of fixed assets
18
Net income / (expenditure) before transfers
Transfers
Net movement in funds for the year
Reconciliation of funds
Total funds at 1 January 2021
Total funds at 31 December 2021
Total
Total
funds
funds
2021
2021
2021
2020
£
£
£
£
124,543
3,978
128,521
80,181
13,969
-
13,969
16,319
12,440
-
12,440
1,360
26,406
2,500
28,906
24,000
9,490
-
9,490
8,491
40
-
40
45
Unrestricted
funds
Restricted
funds
186,888
6,478
193,366
130,396
155,809
1,383
157,192
147,010
155,809
1,383
157,192
147,010
31,079
5,095
36,174
(16,614)
37,519
-
37,519
(824)
68,598
5,095
73,693
(17,438)
-
-
-
-
68,598
5,095
73,693
(17,438)
276,125
67,450
343,575
361,013
344,723
72,545
417,268
343,575

All activities relate to continuing operations.

The notes on pages 15 to 23 form part of these financial statements.

Page 13

The Royal Engineer Yacht Club
Balance sheet
as at 31 December 2021
Note
Fixed assets
Tangible assets
18
Current assets
Debtors
19
Cash at bank
Creditors:amounts falling due within one
20
Net current assets
Net assets
Charity Funds
Unrestricted funds
21
Restricted funds
21
Total funds
£
120,281
44,368
164,649
(1,176)
£
120,281
44,368
164,649
(1,176)
Year Ended
31 December
£
£
253,795
2,597
164,233
166,830
(944)
163,473
417,268
344,723
72,545
417,268
2021
Year Ended
31 December
£
£
253,795
2,597
164,233
166,830
(944)
163,473
417,268
344,723
72,545
417,268
2021
Year Ended
31 December
£
£
253,795
2,597
164,233
166,830
(944)
163,473
417,268
344,723
72,545
417,268
2021
Year Ended
31 December
£
2020
253,795 177,689
163,473 165,886
417,268 343,575
276,125
67,450
344,723
72,545
417,268 343,575

The financial statements were approved by the Trustees on 25 May 22 and signed on their behalf, by:

Chair of Board of Trustees

Board Secretary

The notes on pages 15 to 23 form part of these financial statements.

Page 14

Notes to the financial statements as at 31 December 2021

The Royal Engineer Yacht Club

1 General administrative information

The Royal Engineer Yacht Club is a Charitable Incorporated Organisation in England & Wales with the registration number 1178311. The address of the registered office is RE Corps Funds, Brompton Barracks, Dock Road, Chatham, Kent, ME4 4UG. The Charity's principal objectives continued to be the promotion of the efficiency of the Armed Forces of the Crown by: provision and support of sailing facilities; increasing physical fitness through sailing; encouraging Esprit de Corps through representation in sporting competitions; and providing an association which supports the Corps of Royal Engineers.

2 Accounting policies

2.1 Basis of preparation of financial statements

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

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

2.2 Preparation of the accounts on a going concern basis

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

2.3 Fund Accounting

General unrestricted funds represent unrestricted income which is expendable at the discretion of the Trustees in the furtherance of the objects of the Charity.

Designated funds represent amounts which have been put aside out of unrestricted funds at the discretion of the Trustees to meet specific purposes.

Restricted funds represent income which is allocated by the donor for specific purposes. These are explained in detail on page 6 in the Trustees' report.

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

2.4 Income

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

Page 15

Notes to the financial statements as at 31 December 2021

The Royal Engineer Yacht Club

2 Accounting policies

2.5 Expenditure

Liabilities are recognised as expenditure as soon as there is an obligation to commiting the Charity to the expenditure. All expenditure is accounted for on an accruals basis.

Cost of charitable activities includes the apportionment of support costs shown in note 10.

2.6 Tangible fixed assets and depreciation

Assets costing greater than or equal to £500 are capitalised and valued at historic cost. Depreciation is charged on assets using a straight –line basis over their estimated life on the following basis:

Yachts not depreciated Windsurfing and Dinghy 10%-100% per annum Other equipment 10%-20% per annum

2.7 Debtors

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

2.8 Cash at bank and in hand

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

2.9 Liabilities and provisions

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

2.10 Financial instruments

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

2.11 Donated services and facilities

Donated services, are included in income at a valuation which is an estimate of the financial cost borne by the donor where such a cost is quantifiable and measurable. This amount is matched by donated expenditure.

Page 16

The Royal Engineer Yacht Club

Notes to the financial statements for the year ended 31 December 2021

Unrestricted Restricted Restricted Total Total
funds funds funds funds
2021 2021 2021 2020
**3 ** Donations & Legacies
£ £ £ £
Donation Hulls Fund 3,978 3,978 2,468
Donated Assets 46,830 - 46,830 -
Donated Services (note 9) 77,713 - 77,713 77,713
124,543 3,978 128,521 80,181
Income from Donations and Legacies in 2020 comprised £77,713 unrestricted and £2,468 restricted.
**4 ** Subscriptions
£ £ £ £
REYC 13,969 - 13,969 16,319
Income from subscriptions in 2020 was all unrestricted.
**5 ** Charter Hire(Offshore)
£ £ £ £
Yacht Charter Hire Income 12,440 - 12,440 1,360
Charter hire (offshore) income in 2020 was all unrestricted.
**6 ** Grants
£ £ £ £
RE Sports Board 16,000 - 16,000 14,000
H&M Trust - 2,500 2,500 2,500
Nuffield Trust Grant 10,406 - 10,406 7,500
26,406 2,500 28,906 24,000
Income from Grants in 2020 comprised £21,500 unrestricted and £2,500 restricted.
**7 ** Other income
£ £ £ £
Mooring Fees 9,215 - 9,215 4,879
RE Dinner - - - 2,015
Property Sales 275 - 275 499
Sundry Income - - - 1,098
9,490 - 9,490 8,491
Other income in 2020 was all unrestricted.
**8 ** Investment income
£ £ £ £
Bank interest receivable 40 - 40 45
Investment income in 2020 was all unrestricted.

Page 17

The Royal Engineer Yacht Club

Notes to the financial statements for the year ended 31 December 2021

Unrestricted
Restricted
Total
Total
funds
funds
funds
funds
9 Donated services and facilities
2021
2021
2021
2020
£
£
£
£
Administrative salaries
77,713
-
77,713
77,713
77,713
-
77,713
77,713
10 Analysis of expenditure by activities
Direct costs Grant funding
of activities Support costs
Total
Total
2021
2021
2021
2021
2020
Note
£
£
£
£
£
Yacht Club
11
2,282
-
14,237
16,519
17,126
Offshore
12
14,394
-
109,261
123,655
111,537
Inshore
13
2,754
-
6,905
9,659
7,098
Chatham
14
3,633
-
2,343
5,976
10,073
H&M Trust
15
-
1,383
-
1,383
1,176
23,063
1,383
132,746
157,192
147,010
Unrestricted
Restricted
Total
Total
funds
funds
funds
funds
2021
2021
2021
2020
11 Yacht Club
£
£
£
£
Direct costs
RE Dinner
-
-
-
3,685
RE Year Book
1,933
-
1,933
1,186
Lymington Meet
349
-
349
(100)
2,282
-
2,282
4,771
Support costs
Insurance
2,514
-
2,514
5,023
Fees
-
-
-
3,058
Staff/Account Costs
8,160
-
8,160
2,161
Sundry Costs
3,563
-
3,563
2,113
14,237
-
14,237
12,355
16,519
-
16,519
17,126
Unrestricted
Restricted
Total
Total
funds
funds
funds
funds
9 Donated services and facilities
2021
2021
2021
2020
£
£
£
£
Administrative salaries
77,713
-
77,713
77,713
77,713
-
77,713
77,713
10 Analysis of expenditure by activities
Direct costs Grant funding
of activities Support costs
Total
Total
2021
2021
2021
2021
2020
Note
£
£
£
£
£
Yacht Club
11
2,282
-
14,237
16,519
17,126
Offshore
12
14,394
-
109,261
123,655
111,537
Inshore
13
2,754
-
6,905
9,659
7,098
Chatham
14
3,633
-
2,343
5,976
10,073
H&M Trust
15
-
1,383
-
1,383
1,176
23,063
1,383
132,746
157,192
147,010
Unrestricted
Restricted
Total
Total
funds
funds
funds
funds
2021
2021
2021
2020
11 Yacht Club
£
£
£
£
Direct costs
RE Dinner
-
-
-
3,685
RE Year Book
1,933
-
1,933
1,186
Lymington Meet
349
-
349
(100)
2,282
-
2,282
4,771
Support costs
Insurance
2,514
-
2,514
5,023
Fees
-
-
-
3,058
Staff/Account Costs
8,160
-
8,160
2,161
Sundry Costs
3,563
-
3,563
2,113
14,237
-
14,237
12,355
16,519
-
16,519
17,126
Unrestricted
Restricted
Total
Total
funds
funds
funds
funds
2021
2021
2021
2020
£
£
£
£
77,713
-
77,713
77,713
77,713
-
77,713
77,713
23,063 1,383
132,746
157,192
147,010
Unrestricted
Restricted
Total
Total
funds
funds
funds
funds
2021
2021
2021
2020
£
£
£
£
-
-
-
3,685
1,933
-
1,933
1,186
349
-
349
(100)
2,282
-
2,282
4,771
2,514
-
2,514
5,023
-
-
-
3,058
8,160
-
8,160
2,161
3,563
-
3,563
2,113
14,237
-
14,237
12,355
16,519
-
16,519
17,126

Yacht Club expenditure in 2020 was all unrestricted.

Page 18

The Royal Engineer Yacht Club

Notes to the financial statements for the year ended 31 December 2021

**Unrestricted ** Restricted Total Total
funds funds funds funds
**12 ** Offshore 2021 2021 2021 2020
£ £ £ £
Direct costs
Race Fees 1,071 - 1,071 17
Mooring Fees 3,383 - 3,383 3,617
Planned Maintenance 9,940 - 9,940 14,727
14,394 - 14,394 18,361
Support Costs
Maintenance 25,512 - 25,512 12,274
Certification & Inspection 949 - 949 2,225
Lift & Cradle 1,881 - 1,881 738
Insurance 2,270 - 2,270 -
Yacht sale costs - - - 5,256
Profit on sale of boats - - - (6,687)
Depreciation 936 - 936 1,657
Donated Services 77,713 77,713 77,713
109,261 - 109,261 93,176
123,655 - 123,655 111,537
Offshore expenditure in 2020 was all unrestricted.
**13 ** Inshore £ £ £ £
Direct costs
Medway YC Sail Training 2,754 - 2,754 -
Support Costs
Equipment maintenance 391 - 391 1,645
Depreciation 6,514 - 6,514 5,453
6,905 - 6,905 7,098
9,659 - 9,659 7,098
Inshore expenditure in 2020 was all unrestricted.

Page 19

The Royal Engineer Yacht Club

Notes to the financial statements

for the year ended 31 December 2021

Unrestricted
Restricted
Total
Total
funds
funds
funds
funds
14 Chatham
2021
2021
2021
2020
£
£
£
£
Direct costs
Mooring Maintenance
-
-
-
3,245
Crown Estates
1,600
-
1,600
1,600
Peel Ports Conservency
-
-
-
1,210
Port of Sheerness
2,033
-
2,033
-
3,633
-
3,633
6,055
Support costs
Insurance
402
-
402
402
Mooring Manager Expenses
105
-
105
64
Sundry Costs
1,043
-
1,043
1,128
Depreciation
793
-
793
2,424
2,343
-
2,343
4,018
5,976
-
5,976
10,073
Chatham expenditure in 2020 was all unrestricted.
15
£
£
Grants
-
1,383
1,383
1,176
-
1,383
1,383
1,176
H&M Trust expenditure in 2020 was all unrestricted.
16 Net Income / (Expenditure)
£
£
This is stated after charging:
Depreciation of tangible fixed assets:
-owned by the charity
8,243
9,534
Auditor's remuneration
1,170
906
During the year, no Trustees received any remuneration (2020 - £Nil).
During the year, no Trustees received any benefits in kind (2020 - £Nil).
During the year, no Trustees received any reimbursement of expenses (2020 - £Nil).
H&M Trust
Unrestricted
Restricted
Total
Total
funds
funds
funds
funds
2021
2021
2021
2020
£
£
£
£
-
-
-
3,245
1,600
-
1,600
1,600
-
-
-
1,210
2,033
-
2,033
-
Unrestricted
Restricted
Total
Total
funds
funds
funds
funds
2021
2021
2021
2020
£
£
£
£
-
-
-
3,245
1,600
-
1,600
1,600
-
-
-
1,210
2,033
-
2,033
-
3,633
-
3,633
6,055
402
-
105
-
1,043
-
793
-
402
402
105
64
1,043
1,128
793
2,424
2,343
-
2,343
4,018
5,976
-
5,976
10,073
£
£
1,383
1,176
-
1,383
1,383
1,176
£
£
8,243
9,534
1,170
906

Page 20

The Royal Engineer Yacht Club

Notes to the financial statements for the year ended 31 December 2021

Total Total
Year Ended Year Ended
31 December 31 December
2021 2020
**17 ** Staff costs £ £
Staff costs were as follows:
Wages and salaries 1,830 1,824
Social security costs 337 336
2,167 2,160
The average monthly number of employees during the year was as follows:
No. No.
Management and administration of the fund 1 1
No employee received remuneration amounting to more than £60,000 in either year.

18 Tangible fixed assets

Windsurfing
Other
Total funds
Total funds
Yachts
and Dinghy Equipment
2021
2020
£
£
£
Cost or valuation
At 1 January 2021
127,982
101,818
15,197
244,997
305,035
Additions
-
46,830
46,830
13,088
Disposals
-
-
-
-
(72,302)
Revaluation
37,519
-
-
37,519
(824)
At 31 December 2021
165,501
101,818
62,027
329,346
244,997
Depreciation
At I January 2021
-
60,341
6,967
67,308
63,764
Charge for the year
-
6,514
1,729
8,243
9,534
Disposals
-
-
-
-
(5,990)
At 31 December 2021
-
66,855
8,696
75,551
67,308
Net book value
At 31 December 2021
165,501
34,963
53,331
253,795
177,689
At 31 December 2020
127,982
41,477
8,230
177,689
241,271
19 Debtors
£
£
Other debtors
120,281
2,597
20 Creditors:
£
£
Amounts falling due within one year:
Other creditors
1,176
944
Windsurfing
Other
Total funds
Total funds
Yachts
and Dinghy Equipment
2021
2020
£
£
£
127,982
101,818
15,197
244,997
305,035
-
46,830
46,830
13,088
-
-
-
-
(72,302)
37,519
-
-
37,519
(824)
Windsurfing
Other
Total funds
Total funds
Yachts
and Dinghy Equipment
2021
2020
£
£
£
127,982
101,818
15,197
244,997
305,035
-
46,830
46,830
13,088
-
-
-
-
(72,302)
37,519
-
-
37,519
(824)
165,501
101,818
62,027
329,346
244,997
-
60,341
6,967
-
6,514
1,729
-
-
-
67,308
63,764
8,243
9,534
-
(5,990)
-
66,855
8,696
75,551
67,308
165,501
34,963
53,331
253,795
177,689
127,982
41,477
8,230
177,689
241,271
£
£
120,281
2,597
£
£
1,176
944

Page 21

The Royal Engineer Yacht Club

Notes to the financial statements for the year ended 31 December 2021

21 Statement of funds - current year

Statement of funds - current year
Brought
forward
Income Expenditure Gains/
**(Losses) **
Transfers Carried
Forward
£ £ £ £ £ £
Designated Funds
Chatham 20,621 9,215 (5,976) - - 23,860
Offshore 161,094 100,559 (123,655) - - 137,998
Inshore 37,859 275 (9,659) - 7,761 36,236
Hulls 10,426 - - 37,519 - 47,945
230,000 110,049 (139,290) 37,519 7,761 246,039
Unrestricted funds
REYC 46,125 76,839 (16,519) - (7,761) 98,684
Total unrestricted funds 276,125 186,888 (155,809) 37,519 - 344,723
Restricted Funds
H&M Trust 3,201 2,500 (1,383) - - 4,318
Townsend Trust - - - - -
Hulls 64,249 3,978 - - - 68,227
67,450 6,478 (1,383) - - 72,545
Total 343,575 193,366 (157,192) 37,519 - 417,268
Statement of funds - prior year
Brought
forward
Income Expenditure Gains/
(Losses)
Transfers Carried
Forward
£ £ £ £ £ £
Designated Funds
Chatham 25,815 4,879 (10,073) - - 20,621
Offshore 193,694 1,224 (33,824) - - 161,094
Inshore 36,958 7,999 (7,098) - - 37,859
Hulls 11,114 136 - (824) - 10,426
267,581 14,238 (50,995) (824) - 230,000
Unrestricted funds
REYC 22,013 111,190 (94,839) - 7,761 46,125
22,013 111,190 (94,839) - 7,761 46,125
Restricted Funds
H&M Trust 1,877 2,500 (1,176) - - 3,201
Townsend Trust 7,761 - - - (7,761) -
Hulls 61,781 2,468 - - - 64,249
71,419 4,968 (1,176) - (7,761) 67,450
Total 361,013 130,396 (147,010) (824) - 343,575

Page 22

The Royal Engineer Yacht Club

Notes to the financial statements for the year ended 31 December 2021

22 Analysis of net assets between funds

Current year

Tangible fixed assets
Current assets
Creditors due within one year
Prior year
Tangible fixed assets
Current assets
Creditors due within one year
Unrestricted
Restricted
Total
Total
funds
funds
funds
funds
2021
2021
2021
2020
£
£
£
£
253,795
-
253,795
177,689
92,104
72,545
164,649
166,830
(1,176)
-
(1,176)
(944)
344,723
72,545
417,268
343,575
Unrestricted
Restricted
Total
Total
funds
funds
funds
funds
2020
2020
2020
2019
£
£
£
£
177,689
-
177,689
241,271
99,380
67,450
166,830
120,848
(944)
-
(944)
(1,106)
276,125
67,450
343,575
361,013

23 Related party transactions

All transactions with related parties are disclosed in the Trustees Report and notes to the accounts.

24 Post balance sheet events

On 2nd February 2022, the Charity completed the sale of its yacht Right Royal.

Page 23