Charity Number: 1211021 The Royal Engineers Museum CIO Trustees, report and flnanclal statements For theyear ended 31 December2025 jllllUUUuqllU 11 fjllULlllUIIllllll IE ROYAL ENGINEERS MUSEUM
The Royal Engineers Museum CIO Trustees Report Forthe year ended 31 December 2025 Contents Page Annual Revlew Objectives and Activities Achievements and Performance Financial Review Plans forthe Future Structure, Governance and Management References and Administration Details 12 15-16 Auditor's Report 17-21 Financial Statements Statement of Financial Activities 22 Balance Sheet 23 Statement of cash flows 24 Notes to the financial statements 25-47
The Royal Engineers Museum CIO Trustees Report Forthe year ended 31 December 2025 The Trustees are pleased to present their annual report and the audited financial statements of the charityforthe year ended 31 December 2025. The financial statements comply with the Charities Act 2011 and the Charities SORP FRS 102. Trustees judge th8t in preparing these financial statements they hav8 considered all information that could be reasonably be expected to be available (including levels of reserves held). Therefore, the going concern basis of accounting is deemed appropriate and there are no material uncertainties. Objectives and Activities The Royal Engineers Museum CIO IREMI charitable objects ar8: To collect, preserve and present 8ccessibly the military 8nd civil work, deeds and history of the Corps of Royal Engineers and to educate and promote scholarship therein for members ofthe Corps, the wider armed forces and the general public and, therèby, to contribute positively to thè profici8ncy, reputation and efficiency of the Corps, the recruitment and i nspiration of its members and the bènefit of the public. Established in 2025, evolving from the Royal Engineers Museum Trust Icharity No. 295173 now closed), our principal activities include.. Stewardship and development of the historic Designat&d Collection of the Corps of Royal Engineers which is owned by the Institution of Royal Engineers (Charity No.2498821 and managed underthe terms of a perpetual Loan Agreement. Use of this Collection to explore the history of British Military Engineering and those who serve in the Corps of Royal Engineers. Through our interpretation and exhibition of the historic collection, research and learning services, community tsutreach 8nd online activity we provide an educational experience for all users. Operation as a public heritage attraction in 8 Grade11 Listed Building, providing 8 fun and accessible day out for visitors. offering a mix of paid-for and f ree entrance options. spècial events and group visits alongside venue hire and oth8r fundraising activities. Provision of a venue for community engagement and skills building opportunities. This includes a volunteer programme that, in 2025, saw 62 individuals including 10 universityand 4work experience placements learn about and contribute to the running of the Museum. Giving the equivalent of 2.5 full time staff this voluntary support is critical to the cataloguing, digitisation and conservation of the historic collection.
The Royal Engineers Museum CIO Trustees Report Forthe year ended 31 De¢ember2025 Trustees comply with the duty described in section 17 of the Charities Act 2011 and the Charity's Commission general guidance on Public Benefit. By providing accessible museum services for public enjoyment and education the Museum delivers a proven public benefit, acfvancing education, heritage and culture and promoting the etticiency of the armed forces ofthe Crown. Achievements and Performance A new CIO and strategy On the 20, November 2024 the new Royal Engineers Museum CIO was registered in the UK register of charities by the Charity Commission. REM Trustees spent much of 2025 working with the Executive and wider Museum team to evaluate the current operations and identifying the luture requirements needed for it to continue to flourish and deliver increasingly meaningful experiences to a growing modern audience. A new Strategy 2025-2035 sets out a broad rationale and direction which will increases our effectiveness in creating meaning and value for the public, Corps and other stakeholders as well as ensuring the long-term future as an exemplary professional institution. The Strategy will be achieved through four goals and over the next ten years we will work to ensure that we deliver.. A National Collection that Inspires and endures Wider public Engaged, Conn8Cted and Educatèd. A Strengthened and deepened Corps Relationship, A Secure and Sustainable Future. The first ect taken tOW8rds the transformation of the REM was the reconstitution of the position of Head Curator. Taking the lead on co-ordinating professional curatorial practice, this post is critical in the realisation of our Vision. shaping our use of the internationally significant Collection to inspire innovation 8nd courage through the story of the Royal Engineers, deepening understanding of how milit8ry engineering continue to shape our world and 58fegu8rding this shared heritage forfuture generations. War Winning Engineering Across 2024-2026 the Warwinning Engineering IWWEI project has become the REM'S major development locus. A £250,000 grant from the National Lottery Heritage Fund INLFHI has enabled a project that not only ensures the long-term preservation of and access to a nationally significant collection of World War Two engineering drawings but it has also given REM scope to experiment, test and workwith new partners on both our creative and curatorial practice as well as environmental policy. Conservation of the
The Royal Engineers Museum CIO Trustees Report Forthe year ended 31 December2025 Mulberry Harbour plans CDntinue$ off-site. with one original model roadway undergoing specialist treatment. Our original Mulberry Harbour Kite Anchor was conserved on site and staff and volunteers have received practical training to undertake simple cleaning and repairs in-house. Digitisation is progressingwell with volunteers trained to support the ingestion of 1000s of digitised images of the drawings into the Museum's systems. Tragically, in October 2025, 1,700 of the drawings {41 were stolen whilst out of the Museum for digitisation. A police investig8tion (Crime Reference CR10489211125I was unable to find th8 perpetrators ofthe crime. REM 8nd the NLHF are contentthatthe primary aims and outcomes ofthe project remain unchanged bythis loss. Content development for a n8wWWE online exhibition Is underwaythrough collaboration b8twe8n curatorial and engagement teams. Workingwith the Royal School of Military Engineer Livens Suit W8 have trialled both 3D mod8lllng and printlng, enhancing both physical and remote user engagement wlth the Collection. The WWE exhibltion was opened in June and constitutes the most ambitlous tempor8ry exhibition d8veloped at the Museum. We explore the engineering solutlons that made the operation successful through digitised drawings, photography, objects, first hand testimony, accessible comparators and interactives. Feedback on th888 new interpretative techniques has been extremely positive and evaluation will be used to inform futur8 developments. VE and VJ Day 80, Annlversary Commemoratlons The REM was proud to be amongst Medway Council's designated key sites torthe natlonal commemoration 80th anniversary ofvictory In Europe. The Museum delivered full programme of events that engaged a wide and diverse audience. The day began wlth a Flag-Ralsing Ceremony attended by around 100 guests, including the Mayor, the Deputy Lieutenant of Kent, and the High Sheriff, In the afternoon, the Museum hosted a large Community Street Parryfor more than 200 children from Brompton Westbrook Prlmary School and their families, off ering stalls, Learning activities, and free Museum entry. The programme concluded with a celebr8tory event for 50 guests markingthe unveiling of the newly refurblshed Balley Brldge. The combined impact of these events resulted in one of the busiest day in the Museum's history. welcoming 762 visitors. Growlng ourAudlences The Museum began 2025with a challengingfirst quarter, recordingjust over 3,500 visitors, 29% below last ye8r. However, performance rebounded strongiyfrom May onwards, driven by the exceptional success of the VE80 commemorations. Momentum increased further In Quarters 2 and 3, during which the Museum broke its dsily attendsnce record twice-including an unprecedented 2,014 visitors for the Medway Culture Club's 5th Annual Carnlval in August. Addltional hlghlights included
The Royal Engineers Museum CIO Trustees Report Forthe year ended 31 December2025 93% Visit England assessment rating, nomin8tion forthe Gold Accolade, and the well-received RECognise event delivered with the Medway Af rican and Caribbean Association, for which the Museum will receive a Diversity Award. Byearly September. sustained strong performance brought our best year ever. hosting 25,135 visits. The Museum's soci81 medi8 presence combines promotion ofservices and ourwork with tales from the fascinating history of the Corps. Our following ha8 grown significantly, rlsing from 12,985 In 2019 to 23,513 in 2025, an 81 Ok increase across platforms including Facebook. Instagram, TikTok, YouTube, 8nd X. Facebook remains the strongest channel, generating the highest engagement and the top post of 2025, while Instagram and TikTok Continue to develop wlth strong photographic and short-form content performance. Totalviewership for 2025 was 3.7million, 8 211% In¢re8sefrom 2024. Engagement (Exhlbltlons & Outreach) Throughoutthe year, the Museum delivered sn ambitious and wide-ranging outreach snd exhibitions programme. Actlvlty began In J8nuary with the popula r Lost Soldiers exhibition by artist Mark Humphries, originally created for the First World War centenary. Although the scale of the 8rtvvork prevents permanent display. its presence attracted strong interest and 1,197 vlsltors. The Museum also m8rked the Corps, 150th FA Cup anniversary with a sm811 pop-up exhlbltlon featurlng the official replica Cup, generously loaned by the Offlcer8' Mess. Exhibitions in the Small Space contlnued to rotate successfully, with the programme f ully scheduled until 2027. The 2025 prograrnme expanded wlth the introduction of Peace Walls, a short-run exhibition on Northern Irish political street art accompanied by 8 curator talk and linked workshops using the Museum's Berlin W811 fragment our f list Short-run exhibition in the Pasley Flesearch Centre. Outreach activity remained strDngthroughouttha year. Museum teams represented REM stArmetJ Forces Day at Chatham Historic Dockyard, at 22 Engineer Regim9nt Families Day in Tidworth, and at communlty carnlvals in Chatham and Gillingham. A pop-upwarwinning Engineering displaywas 81so taken to the Royal Enginaers Historical Society conference on How WarStimul8tes Innov8tion in Military Engineering, delivered in partnership with 21 Engineer Reglment and 8 Engsneer Brigade. Research and Access The REM continues to 108n item8 to other org8ni8ations, building rècognltion for our Designated Collection and increasing access. The World War One Sniper Decoy on loan tD the lrnperialwar Museum Nonh recelved 37,500 visitors in the last three months of 2025. The Museum's access and research functions have grown substantially through new staffing and stre8mlined processes. The 8ppolntment of a Research & Enquiries Officer
The Roy81 Engineers Museum CIO Trustees Report For the year ended 31 De¢ember2025 has significantly increased efficiency of public enquiries and increased researcher visits. Subject-tracking of information requests now informs online resource development. Public access to the collection has expanded and thousands of new catalogue records have been created or enhanced through the object inventory work in the stores, with hundreds of items reviewed, photographed and repacked. Producing imagery at an extremely high level and ingesting 100.OOOs of f iles from partnerships with the Army Museum ogilby Trust a nd Find My Past our Curatorial staff and volunteer5 are transforming the future accessibility and understanding of ou r Collection. Collection Development and Care Collection care activity has seen notable growth. Significant conservation has been completed on key co118Ction items, including General Gordon's Chinese campaign map end the Mulberry Harbour collection. A new weeklyvehicles Volunteer Group now carries out conservation and Consolidation of the Museum's vehicle and large equipment holdings. Collection development continues through steady public donations and MOD gifting. A 200 four-bay Bailey Bridge has already been 150 installed outdoors and will be joinad by 8 Medium Girder Bridge in 2025. Cataloguing, inventory. and film conservation have progressed, including training for cine-film repair. Ongoing digitisation and improv6d environmental monitoring (including new sen50rs and adaptations to archival climate controll are supporting higher standards of e8re and accountability. 100 145 50 120 New Collectlon Acqulsltlons D 2025 112024 Le8rnlng and Famllles The Learning and Families programme remain active and wide-ranging. Weekly school bookings, monthly Mini Museum Explorers sessions. and extensive outreach continue to bring children and young people into closer engagement with military engineering heritage. The annual Schools Bridge Building Competition remains a flagship event, SUPPOrted by Rochester Bridge Trust. An Arts Council England project enabled Special Educational Needs students to work with artists and performers from Peoplescape Theatre and explore our Collection. Despite these successful programmes, encouraging routine visits f rom schools and particularly secondary schools remains a challenge and visits were down on 2024 by 40010. In response, new immersive study days for the First World
The Royal Engineers Museum CIO Trustees Report Forthe year ended 31 December 2025 War and Cold War curricula have been developed and successfully trialled with home-educated families. Work with service families continues through our collaboration with the Army Welfare Service summer clubs as well as monthly stay-and-play sessions. Museum-based holiday family activities were aligned with the War Winning Engineering theme. The temporary Peace Walls exhibitOn included family str8et-art workshops linked to the Museum's Berlin Wall fragment. Corps Engagemont The Museum provided extensive support to serving and retired Sapper8 throughout the year, offering free entry to 1,735 Sappers and around 250 Royal Engineers Association IREAI members, hosting over 45 Corps events at no cost, and supporting training and ethos activity for nearly 300 serving or prospective Sappers. Engagement with S8pper families and veterans expanded significantly, reaching over 450 people at community events. Our strengthened partnerships with the REA has enabled new initiatives such as the Bailey Bridge donation, embedded existing Veteran Vehicle weekend reunions and supported bespoke trainingfor 120 Sappers from 1 RSME Regt who visited the WWE exhibition and participated in a session on the history of British Infantry Weapons. The REA and REM jointly delivered the launch of the Chelsea Pensioners outreach service, and wider Corps outreach at national and local events. Ongoing family support included the monthly'stay and Play, sessions mentioned above and two Military Partners. Nights, reinforcing the Museum's role atthe heart of the Sappèr community. Financial Review Principle funding sources of the REM REM'S principle financial support remains the Grant In Aid given by the Ministry of Defence in line with its policy for Army Museums. This is ringfenced for staff costs. The funds donated by other Royal Engineer charities, The RE Institution, The RE Central Charitable Trust and the RE Association reflect the enduring support of the Corps for the preservation of its own heritage and the ability of the Museum to deliver aspects of the each charitiès, objects.
The Royal Engineers Museum CIO Trustees Report Forthe year ended 31 December 2025 In additional to core funding, over the last 10 years, the Museum has 8Ctively increased its own income generation. 50 % of visits are chargeable with additional revenue comingfrom the café, shop and increasingly venue hire activities. 2025 was particularly challenging as widely report increases in the cost of living hav8 impacted the herit3ge, tourism and hospitality sectors. For REM this resulted in income gener8tion that was 19% lower than forecast. Solutions to long term growth will be addressed in the Masterplan gnd strategic development. REM also uses the dividends from its Endowment Fund investment in support of annual running costs. £52,730 £65.8 10% 9% £199,691 29% 257,04 50.00 Institution ol Royal Engineers RE Centr81 Charitable Trust MOD GIA PersonnelGrant REA Grant Revenue Income Invpytmpnt Divirtcnd Balance Sheet The accumulated funds decreased by £85.365, after making gains on investments of £99,914, to £1,514,59512024 increased by £70,544 to £1,599.960, aft8r making g8ins on investments of £70,5441. Notes to the Statement of Financial Aff airs and B81gnce Sheet provide supplementary information against each funding activity. Reserves Policy A Museum Endowment Fund was transferred from the old Royal Engineers Museum (Charity No. 2951751 to the REM in 2025. This Fund acts as a restricted expendable reserve and the new charity adheres to the est8blished rules for its use: to offset running costs and any decline in REM'S incomefrom its majorsupporters,which include other Royal Engineer Charities and the Ministry of Defence., provide funding for Museum development project. In 2025 Trustees agreed to ensure that the Fund not be used for this latter purpose should it fall below £1 million. The Fund currently stands at £1.279,994 and Trustees recognise the necessity of building this fund for the long-term security of the Museum. The f ree reserve at year end were-£59,68912024-. -£51,766). This due to the large amount held in designated funds and fixed assets.
The Royal Engineers Museum CIO Trustees Report Forthe year ended 31 December2025 Restricted Funds This is a restricted expendable endowment established in 1989 for the Royal Engineers Museum Trust (Charity No.- now c108edl. Along with other assets of this old charity, in 2025 itwas transferred ta the new REM CIO whose Trustee8 undertook to complywith its existing rules. The purpose of the Endowment Fund was set out in the Rules of th8 Institution of the Royal Engineers (revised 20091 Section Vll. paragraph 14. The following restricted f unds are held for the usa shown.. Medway Council VE80-A grantform Medway Council in support ofVE80 and community events Bridge Buildlng- A grant given by the Rochester Bridge Trust in support of the Schools Brldge Bullding Competition BR200 8nd Archive- Fund forthe Archive & Library Prole¢t that mov8d thi8 collection into the Museum premises HLFIWarWinning Engineering- NHLF grentfor theW8rWlnning Engin@ering Project, conserving, digitising and exhibiting ww2 technic81 drawings National LotteryAward I P8ace Proj8Ct-Afund for prolect commemoratingthe casualties of WW1 National Ar¢hives- A grant given byTNA for a project encouraging 8WgrengSS and interest in archiv81 careers Unrestricted funds Eli&.0.f.the ROyAln1n The Association ofthe Friends of the Royal Engineers Museum IFoREM} raises modest sums for the Museum, prim8rily through Its membership tees. This money is held in designated fund. Its Chalr currently sit8 on the Trustèe Board in a non-voting capacity. Notes 15 8nd 18 of the f inanclal statements provide the financial details tor the year. luse.um£.oile£lloL A fund has been set up to hold funds ralsed by the Museum through the legitimate sale of de-accessioned or un-accessioned items in the Collection under the MuseLJm's disposal policy and procedures. Such funds can only be used for the benefit of the Collection. either for acquisition of other items or for conservation projects and be used as partnership funding for grant applications to th8 sam8 ends. Note 22 of the financial statement provides financlal details for the year, 10
The Royal Engineers Museum CIO Trustees Report Forthe year ended 31 December 2025 This fund was created to assist REM development projects as well as large operational andlor infrastructure expenditure and includes general fundraising activity. Investment House and Performance The Museum invests in the Armed Forces Charities Growth & Income Fund, m8naged by BlackRock. The Objective of the Fund is to achieve real growth in capital and income over the long term by investment mainly in equitiès and f ixed income s8curities. Further investment details are given in the notes to the financial statements. No additional investment units were purchased in 2025. Investments delivered dividends of £52.730 in 202512024.. £41,491). During the period 1 January to 31 December 2025, the performance of the distribution units in the fund was +12.8%12024'. +8.1%1 after fees and expenses. Risk Management Statement The Trustees have given consideration to the major risks to which the charity is exposed. Th8y regularly r8view the Risk Register and risk is discussed 8t every Bo8rd meeting 85 8 standing agenda item. They are satisf led that systems have been established to mitigate those risks including closer scrutiny of f i nanc8s with the èstablishmènt of a standing Finance Committee. The Register encompasses legislative obligations placed on REM as a charity. museum, workplace and public attraction. Trustees have also ensured that all REM activity, Trusteès and key officers are propérly indemnified through the arrangement of museum appropriate insurance. Plans for the Future The Strategic Plan 2025-2035 describes our ambition to transform our public offer, increasing our audience, profile and reputation. In order to progress this strategy the REM will, in 2026. work with stakeholders to create a Masterplan. Incorporating audience research, feasibility studies and fundraising plans, this will guide our journey to the vision of the Museum in 2035. As well as working towards the Masterplan the Trustees have approved the following four initiatives for 2026-2027.
The Royal Engineers Museum CIO Trustees Report Forthe year ended 31 De¢ember2025 Understanding our Audiences by reviewing the data already collected and increasing our evaluation ot Museum services and programmes to improve existing services and practice. This will also complement the commissioning of audience development research as part of our Masterplanning. Consolidating & Developing Communications in order to reach more people with information 8bout the Museum. incre858 the consistency of timing and brand and showcase the wide range of services and activities delivered by the Museum. Removing Obstacles for Sappers by working closely with the Corps to identify issues preventing the inclusion of Museum visits to training programmes. We will establish a Sapper Youth Panel to ensure that the voices, perspectives, and experiences of young Royal Engineers meaningfully inform the Museum's activities. programming, interpretation, and strategic development. Making Best Practice Routine in order to ensure that we have a solid operating basè that supports daily practice and strategic developrnent. Work here includes reviews of gener918dministr8tive processes such as IT provision, staff performance monitoring, security and on line retail. Alongside these initiatives we will continue to offer an exciting public programme to all Nuseum users as well as careful curation of the Collection. Structure, Governance and Managernent In 2021 the Council of the Institution of Royal Engineers, comprising the Board of Trustees for the Royal Engineèrs Museum (Charity No. 2951731 agreèd to create and transfer all responsibility for the stewardship of the historic collection and the operation of the Museum of Corps of Royal Engineers to a new Charitably Incorporated Organisation. on the 201h November 2024, after 8ppropri8ta consultation with Institution Members, the Engineering Council and the Privy Council, the Royal Engineers Museum CIO was established. Property was transferred and a perpetual Loan Agreementforthe Collection was agreed on the 31" January2025. Employment of all Museum staff was transferred to the new CIO in line with the Transfer of Undertakings IProtection of Employment) Regulations 2006. Trustee Recruitment & Training
The Royal Engineers Museum CIO Trustees Report Forthe year ended 31 December2025 A rigorous public recruitment and selection process was undertaken in 2024 by the REM Chair and Director. Six appointed Trustees joined the two nominated and two ex-officio Trustees on th8 new CIO Board. ThroughouttheAutumn of 2024 all REM CIO Trust985 attended meetings, training and inductions. A record ot Trustee training is maintained by th8 Mus8um Director and Trustees are expected to renew form81 training on their legal responsibilities every 3 years. Other training opportunities, including attendance at r81evant conferences, are made available throughout the year. REM Scheme of Delegation A Scheme of Delegatlon defining how the Board of Trusteas del8gat8 8Uthorlty, de¢l$lon making and responsibilit18S to Its employees and committees will be approved by April 2026. REM Trustee Committees and Groups In accordance with Clause 14 of the REM Constitutlon the Board of Trustees may delegate any oftheir powers orfunctions to a commlttaeor committees.. REM F.inano&Qomri Tho Finance Commlttee was constltutod by REM Resolution 004 and comprisesthe Chairof the REM Finance Commlttee, Mo otherTrustees, the CorpsTreasurer8nd the Museum Director. Its st8tement of purpose is"To exercise, on behalf of the Board Trustees, sup8rvisory overslght of the Charity's activities related to tinanc8s and investments, Including rel8tgd risks. The Commlttee is responsible. on behalf of the Trustees, for revl8wing, challenging and ultlmately supportlng Management and the Corps Treasurer In assessing and advising on necessary actions in relation to ongoing financial performance, financial planning (including annual budgets) 8nd In mgnagingthe Charity's financial resources, includingthe Endowment Fund," This Committee was constituted by REM Resolution 005 and comprises the Chair oftho REM Finance Committee. two oth8rTrustees, th8 Corps Tre8surer and the Museum Director. Its statgment of purpose is"To exercise, on behalf of Trustees. supervisory oversight of all aspects of the Charity's activities r81ated to People, and related rlsks, 8nd to remuneration. In particularly the Committee is responsible for agreeing the benefits package, p8y & bonus awards and co-ordinating recruitment ofthe REM Director. Day-to-day management of activities relating to peopl& are and remain the responsibility of the Director and the Senior Management Team." 13
The Royal Engineers Museum CIO Trustees Report Forthe year ended 31 December2025 The Group was established to supportthe Museum Executive in the planningand d91ivery ofthe REM Strat8gy 2025-2035. It comprises fourTrustee8, Museum Director, Deputy Director and Head Curator. Its statement of purpose is to"Act as an advisory and coordinating group to ensure the progress of str8tegic development, regularly updating the full Trustee B08rd out of th8 main Trustee meetings," Partnerships and Networks The REM sits within a network of other Corps and military charities as w811 as heritaEe organisations. Our primary partnerships are with- As owner of the historic collection, the Inst RE is the preeminent partner of the REM. Through a perpetual Loan Agreement end in pursuit of its own Charitable objects. it de18gates to the REM all responsibilities for the development, care, $e¢urlty and publlc access to the collection. It also provides an annual grant to the REM whl¢h, in 2025, provlded 14% of our opgrational income. Ihe14ini8.try.o.f. D_eARn£R. Underth8 8XlSting MOD Policyfor National, Regimental and Corps Museums, REM continues to receiv8 its support. This support comprises Grant in Ald fundlng for REM staff costs as well as occupation and maintenance of four buildings and thelr adj8C8nt ground8 88 perthe 2001 le8se and 2015 supplemental lease agreed between the Institution of Royal Engineèrs IBody Politlcl and th6 Secretary of State for Defence, IbL&oyaL•o.rs..Cen.tr.aJ In pursuit of its own charitable objects, the RECCT provldes REM with an annual grant towards running costs. In 2025 this provided 13% ot REM'S budgeted operation81 charity income as part of Its'enduringsupport.. In 2022 REA Trustees approved its first grant of £50,000 for the delivery of recognised shared charitable objects. In 2025 this strateEiC partnership provided 13% of the Museum's operational charlty income and has been agreed for 8 4, year. From 2008, REM entered a heritage partnership and commercial leasehold with Chatham Historic Dockyard Trust for 1,000 sq. m. of storage and display space for18rge iiems alongside similar amounts and types ofdockyard Bquipment and for access to over2,000 sq. m. of space forfund raising events. In 2023 a new 5-year Ilcence to use the premises was confirmed and a licence finally agreed in January 2025. 14
The Royal Engineers Museum CIO Trustees Report Forthe year ended 31 De¢ember 2025 Reference and Administrative Details Registered Charity Number: 1211021 Principle Address: Royal Engineers Museum Brompton Barracks Chatham Kent ME44UG Trustees Maj Gen. IRetdl D. Southall CBE Col R Hawkin5 MBE ADC ChairlNominatedl Vice-chair (Ex Officiol (Ex Officiol (Nominatedl (Appointed) IAppointedl (Appointed) (Appointedl IAppointedl IAppointedl Colonel Commandant Corps Colonel Corps Historian RE Institution Col (Retdl D. Bigger Lt Col (Retdl P Brooks Mr R Col8-Hamilton Ms C Constgntin Mrs H Gower Dr G Howell MBE Sir G J8ss81 Bt DL Mr F Norwood Museum Executive Mrs RMS Nash Museum Director Mr M Thomas Deputy Director Head Curator Dr A Rose Advisors Maj (Retdl l. Sidebottom, Maj Gen (Retdl J Moore-Bick* Corps Treasurer Chairof FOREM IMOD Employee) 8oard of Trustees advisors and non-voting members, neither are Tru8toes or REM employee5. Approved by the Trustees and signed on behalf of the Trustees 16 July 2026. Mrs RMS Nash Director REM
The Royal Engineers Museum CIO Trustees Report Forthe y8arended 31 December 2025 IndependentAuditor Kreston Reeves Audit LLP St8tutoryAccount8nt Montague Place Quayside Chatham Maritime Chatham Kent ME44QU Bankers Lloyds Bank plc Piccadilly Branch PO Box 1000 London BX1 1LT Solicitors Furl8y Page LLP 39 St Margaret's Street Canterbury Kent CT12TX Investm8nt Manager BlackRock Investment M8nagers Ltd 12 Throgmorton Avenue London EC2N 2DL Human Resources HR Dept (West Kent) Ltd 134 London Road Kent TN4 OPL 16
The Royal Engineers Museutn CIO Trustaes Report Forthe yearended 31 Dec8mber2025 IndependentAuditors' Report to the Members of Royal Engineers Museum CIO Opinion We have audited the f inancial statements of Royal Engineer5 CIO (the 'charityl for the year ended 31 December 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement ofcash Flows and the related notes, includinga 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 n the UK and Republic of Ireland. (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: give a true and fair view of th8 State of the Charity's affalrs gs at 31 D8C8mb8r 2025 and of its incoming resources and application of resources for the year then ended. hav8 been properly prepared in 8ccordanc8 With Unit8d Kingdom Generally Acc8Ptgd Accounting Practice. and have been prepared in accordance with the requirements of the Charities Act 2011. Ba318 for oplnlon We conducted our audit in accordance with Internation81 St8nd8rds on Auditing IUKI IISAS IUKII and applicable law. Our responslbilities under those stand8rds are further described in the Auditors, responsibilities for the audit of the fin8nci81 st8tements section of our report. We are independent of the Charity in accordance with the ethical requlrements th8t are relev8nt to our audit of the financial statements in the United Kingdom, Includlng the Financial Reporting Council's Ethical Standard, 8nd we h8ve fulfllled our othor 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 opinlon. Conclusions relatingto going concern In auditing the financial statements, we have concluded that the Trustees, use of the going concern basis of bccounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we h8ve not identified any material uncertainties relating to events or conditions that. individually or collectively. may cast significant doubt on the charity's abilityto continue as a going concern for 8 period of at least twelve months from when the financial statements are authorised for issue. 17
The Royal Engin88rs Museum CIO Trustees Report For the yearended 31 December 2025 Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. Other information The other information comprises the information included in the Annual Report otheT than the finar]cial statemer)ts and our Auditors, Report thereon. The Trustees are responsible for the other informatlDn contained within the Annual Report. Our opinion on the 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. Our responsibility is to re8d the other informstlon gnd, In dolng so, consider whether the other information is materially inconsistent with the financial st8tements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material incon818tencies or 8pp3rent material misstatements. we are required to determine whether this gives rise to a material mi88tatement in the f inanci81 statements themselves. If, based on tha work we have performed, we conclude that there is a materisl misstatement of thi8 Other Informatlon, we are requirecl to report th8t fact. W8 hav8 nothing to report in this regard. Matters on whlch we are requlred to report byexceptlon We have nothing to report in respect of the followlng m8tters where the Charltl8S (Accounts and Reports) Regulations 2008 require8 U8 to report to you if, in our opinion: the information given in the financial statement8 18 inconsistent in 8ny mater181 respect with the financial st8tements' or sufficient accounting records have not been kept. or the financial statements 8re not in 8greement with tha accounting records; or we have not r8C8iV8d all the information and explanations we require for our audlt. Responslbllltles of trustees As explained more fully in the Trustees, Responsibilities Statement, the Trustees are rèsponsib18 for th8 preparation of th8 financial statements which give a true and fair view, and tor such intern81 control 8$ the Trustees determine is necessary to enable the preparation of tinancial statements that are free from material misstatement, whether due to fraud or grror. In preparing the f inancial statements, the Trustees are responsible for assessing the Charity's abilityto contirbue as a going concern, disclosing. as applicable. matters related to going concern and using the going concern b8sis of 8ccounting unless the Trustees 18
The Royal Engineers Museum CIO Trustees Report Forthe yearended 31 December2025 either intend to liquidate the Charity or to cease operations. or have no realistic alternatlV8 but to do so. Auditors, responsibllities for the audlt of the flnanclal statements We have be8n appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with the Act and relev8nt regulations made or having effect thereunder. Our objectlV8s are to obtsin re880nable assurance about whether the financial st8t8mentS 88 a whole are free frorn material misstatement. whether due to fraud or error, and to issue an Auditors, Report that includes our opinion, Reasonable assurance is a high lev81 of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material mis8t8tement when it exists. Misstatements can arlse from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic d8cisions of users t8ken on the b8sls of these f inancial statements. Irregularities. incluLling fraud, are instance8 of non-compliance wlth laws and r8gul8tlons. We design procedures in line with our responslbilities, outlined abov8, to detect materi81 misstatement8 In respect of irregularities, including fraud. The extent to which our pro¢edure8 are capabl8 of detecting irregularities, includlng fraud is detailed below: C8pablllty of the &udit in det8Cting irr8gu18ritl8s, Inclucllng fraud Based on our understanding of the ch8rity and sector. and through discussion with the Trustees and other management las requlred by auditing standards), we identif led th8t the principal risks ot non-compliance with laws and regulations related to health and Safety. anti-bribery, and employment 18w. We consldered the extent to which non- compliance might have a material effect on the flnanclal statements. We also considered those laws and regu18tlons that have a direct impact on the preparation of the flnancial statements such as the Charit18s SORP IFRS 1021 Second Edltion (released October 20191. and other relevant charity legislation. We Communicated identitl8d laws 8nd regulations throughout our team and remained alert to any indlcations of non- compliance throughoutthe audit. We evaluated Trustees, 8nd management's incentives and opportunities for f raudulent manipulation of the financial statements (including the risk of override of controls) and determined that the princip81 risks related to posting inappropriate journsl entrles to increase ievenue or reduce expenditure, and m8n8gement bias in accounting estimates. Audlt procadures performed by the engagementteam included: 19
The Royal Engineers Museum CIO Trustees Report Forthe year ended 31 Decembèr 2025 Discussionswith managementand assessment of known orsuspected instances of non-compliance with laws and regulations (including he8Lth 8nd safety) and fr8ud: and Assessment of identified fraud risk factors. and Review of cash expenditure to conf irm no evidence of personal ben8fit' and Challenglngassumptions andjudgements made bymanagement in its significant accounting estimates. and Performing analytical procedures to identify any unusual or unexpected re18tionships, including related party transactions. that may indicate risks of material misstatement due to f raud,. and Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactlons wlth related parties outside the normal course ot business. and Reading minutes of meetings ofthose charged with govern8nc8; and P8rforming 8n81ytical procedures with automated d8t8 analytics too18 to identlfy 8ny unusual or unexpected relationships. including related party transactions, that may indicate risk8 of material mlsstatement due to fraud,. and Phy8iC81 inspection of t8ngible ass8ts susceptible to fraud or irregulgrlty. and Review of signlficant and unusual tr8nsactions' and Identlfying and testlng Journal entries. in particular any m8nu81 entrles m8d8 at the year end for finan¢i81 statement preparation. Because of the Inherent limitations of an audit, there is a risk that we will not detect all irregularities, Includlng those leading to a material mlsstatement in the fin8ncial statements or non-compliance with regulatlon. This risk increases the more that compliance with a law or regulation is removed from the events and transactlons r8f18Cted in the financial statements, as we will be less likely to become aware of Instances of non-compliance. The risk is also greater reg8rding irrpgulsrities occurring due to fraud rather than error, as fraud involves intention81 concealment, forgery, collusion, omission or misrepresentation. As part of an audit in accordance with ISAS (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We 81s0: Identify and assess the risks of material misstaternent of the fln8n¢ial statements. whether due to fraud or error, design and perform audit procedures responsive to those rlsks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 20
The Royal Engineers Museum CIO Trustees Report Forthe year ended 31 December 2025 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. but not for the purpose of expressing an opinion of the effectiveness of the charity's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting 8Stimates and r8lated disclosures made by the Trustees. Conclude on the appropriateness of the Trustees, use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exist8 related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that 8 material uncertainty exists, we are required to draw attention in our Auditors. R8porrto th8 related disclosures In the fl nanclal statements or. If such dlsclosur8S are inadequate, to modify our opinion. Our conclusions ar8 bas8d on th8 audit evidence obtained up to the date of our Auditors, Report. However, future events or conditions may cause the charity to cease to continue as a going concern. Ev8luete the over811 p¥esentation, structure and content of the finan¢lal statements. including the disclosures, and whether the financial statements represent the underlying transaction8 and events in a manner th8t achieves fair piesentation. We communicate with those charged wlth governance regarding, among other matters, the planned scope and timing of the audlt and signiflcant audit findings, including any signif ic8nt def iciencies in internal controlthatwe identify during our audlt. Use of our report This report is made solelyto the Charity's Trustees, as a body, in accordance with Part 4 of th8 Charities (Account$ and Reportsl Regulations 2008. Our audit work has been undert8kan so that we might state to the Charity's Trustees those matter5 Wg are required to state to them in an Auditors, Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyon8 Other than th9 Charity and its Trustegs. as a body, for our audit work, for this report, or forthe opinions we have formed. Samantha Rous& FCCA DChA lor on behalf of Dale.- 16 July 2026 Kreslon Reeves Audit LLP stalulory Auditor Floor Marilima Place Quaysidè Chatham Maritimg Chatham Kent ME4 40Z Kreston Reeves Audrt LLP are eligible lo act as auditors In terms of section 1212 of the Companies Act 2006. 21
Royal Englneers Museum CIO Statement of financial activitias For the year ended 31 Dècember 2025 Re-stated Total funds 2024 Unrgstrict8d Restricted Endowmant funds funds funds 2025 2025 2025 Total funds 2025 Note Income and endowments from.. Donations and legacies Olhgr Iroding activilies Investments 581,746 134,721 54,397 5.200 9,521 596.467 134,721 64.746 676,815 137,012 47,515 16 349 Total Income 770 884 9,870 785.934 861 342 Expendlture on: Ralslng funds Charitable aclivi11gs 10111 17 47,784 815,330 47,784 923.430 45,825 791,186 108,099 Total expendlture 863 114 108,099 971.213 837,011 Net Incomellexpendlture} before revaluatlons 192,2501 {102,8991 9,870 1186.2791 24,331 Nel gains cn Investments 99,914 99,914 46,213 Net Income before transfern 192,2601 <102.8991 109,784 185.3661 70.544 Tran6fer8 beeen Funds 29 86,000 117.000 1202,000} Not movement In fund8 for year 17,2501 14,1Q1 192,217) 185,3681 70.544 Tol81 funds at 1 January 202S 253.181 7,575 1,339.204 1,599,960 1,529,416 Total funds at 31 DeGernber 2026 29 245,931 21,676 1246,988 1 $14,596 1,S99.960 All aclivili6s r8lale lo continulng operations. The notes on pages 20 10 42 form part of these financial 51alements. 22
Royal Engineers Museum CIO Charity Number 295173 Balance sheet As at 31 December 2025 2025 2024 Note Fixed assets Tangible assets 25 168,585 142.375 Invèslmanls 1 279 994 1.297,079 1.436.579 1,439,454 Currgnt a$sgts Stock 10,250 10,275 Deblors: amounts falllng due wllhln ong year 27 19,6Z9 22,110 C88h al bank 236 7SO 305 941 266,629 338,326 Cr•dltorn'. amounts falllng due wilhln one year 28 1188,6131 {177,820) Ngt current ai88ts 160.508 Ngt a980t8 1614 595 1 S99.980 Charlty Fundffj Endo81 funds 1,246.988 1,339,204 ReslrlGted funds 29 21,876 7,575 Unreslrfcted funds 29 246 931 253,181 Total funds 1.514,595 1.599 960 The financlal statèmants wera 8pprovad by tho Trustegs on 18 July 2026 and signed on their behalf, by.. }LoI_C Malor General DW S uthall CBE - Trustee Colonel GS Cheesrnan ADC- Corps Colonol The notes on pa9e$ 20 to 42 form part of these linanoal stslements. 23
Royal Engineers Museum CIO Statement of Cash Flows For the year ended 31 December 2025 Note 2025 2024 Net cash used in operating activities 33 234.814 56,154 Cash flows from Snvestlng actlvltl6s Intere81 and dividend8 Sale of investments Purchase of Investmgnts PurchaBe of tangible fixed a8sels 54,746 117,000 47,515 1402,000) {7,834) 16,1231 Cash provlded by Iusgd In) InvestSng acllvltles 165,623 362.319 Increasg Idecr80sel in cash and cash equivolenl$ in Ihg ygar 69.191 306.185 Cash and cash equSvalenls al the beginning of the year 306,941 612,1C Total cash and cash equlvalents at the ènd of th• yèar 236,780 305,941 Analysls of ch#ngeB In n8t dgbt At1Jan 2025 At 31 D8c 2025 Cashtlow$ Cash and cash equlvalents Cosh 306 941 236.760 24
Royal Engineèr8 Musoum CIO Notes to the financial statements For the year ended 31 December 2025 1 G•nèral admlnlstratlv• Infomiatlon Royal Engingèrs Mu$eLJm Fund 1$ an unin¢orporaled charity in England and Wales with th8 charily r8gistration number 295173. The address of th8 registered office is Royal Engineers Museum, Bromplon Barracks, Chalham. Kent, ME4 4UG. The charilles prfnolp81 objectives conllnue lo be lo collect. pr&serve and prBsBnl acces55bly tho rnililary and clvll work. deeds and history ol The Corps of Royal Engineers and to educate and promote scholarship therein fN members of the Corp5. the wider Armed Forces and the ganer81 public and. thereby, lo contribute positively lo the proficiency reptjlalion and 8ffiaency of the Corps, the racrultmenl and inspiratlon ol ils membèrs and the benefll of the publlc. 2 Accountlng pollclè8 2.1 Basbs of preparatlon of financlal statsmgnts The financ581 slalemenls have been prepared In accordance wSlh the Charillgs SQRP IFRS 1021 A¢counling and Reportlng by Charilie$.' Statement of Recornmended Practice applicable lo charllles preparlng Ihelr accounts accordance with the Flnancial Reporting Standard appllcabl$ in Ihg UK and Republlc ol Ireland IFRS 1021 Ipffp¢tI 1 January 20191 ond the Charlli8s Act 2011 Royal Englneers Musaum Fund m8els th8 d8finlllon of a public b8neflt enllly under FRS 102. Assets and liabllities are initlally recognis8d at historical cost or transaction valuè unless olhemlse staled In the relevant accoun11ng pollcy nolel81. The flnancial slalements arè presented In UK sterling. which18 th8 Charit3 lunclional currency, and rounded Ic* the nearest pound. 2.2 Preparatlon of the a¢¢ounts on a golng concern ba818 The Trustees 8s8e88 whether thè u68 of going concern Is approprlate, l.e,,whelher there are any rnaterSal un¢ertalnlSes related to events or Conditions that rnay cast signifi¢anl doubt on the ability of the Charity lo continue as a going concern. The Trustees rnake this a88essment in respgct of a period of al least one year from the dale of aulhDiisalion for issue of the financi81 $18lemenl$ and have ¢on¢lud8d that Ihg Charity has adèquatè r8sourc8s to continue in op8ra(lon exist8nc8 for the for8S88able futur8 and there ar8 no material uncertainties about the Charity's ability lo conllnue as a going concern, thus they conllnue lo adopt the going concern ba818 ol accounllng in preparing the financial slal¢m&nls. 25
Roy81 Engln8er8 Ikuseum CIO Not•s to th• linancial statements For the ypaT ended 31 December 2025 2 Accountlng pollclès Icontlnuadl 13 Fund accountlng Unresliicted funds represent unrestrlcled funds, whSch are expendable, at the dIscOn of the Tru51ee5 in the furtharanc8 of th8 obj8Ct8 of the charity. Such fuThds may be held in ord8r lo fin8n both workin9 capital and capital Inve8tm8nl. Endowrnent lund$ present an expendab endowment, where the endowed capital can be converted lo Incom8. In 2025, £117K of Invtrslmenls wero roallsed lo fvnd tr8n¢h0 1 of The Nallonal Lottery Hgritsge project.. Oe51gn818d funds.. FOREM is a fund set up at the request ol the Trustees te enable volunteers lo support the museum. PreWs'. Museum inyrovements relat• lo the museum knpfov•mant to whlch a capllal grantwas rnad•. Collecllon funol r8presents Income recov8red from Ihe $818 of h6rltsg8 8s68ts and whlGh In acccrdan¢8 wlth the mD¢m$ guKt?lino$. can only be expended cn the Colle}0. MLA & Wollson Trust rèprasants grant Incema agélnil ipeelfic •xp•ndllurè. Inv8Stm8nl income. 98in$ and 106$e& qlt ollocoted to the opproprlale lund, 2.4 Incom• All Incom& Is recognl8ed onee tha charlty has trnllllernent to Ihe Intomts, It Is prebablo thai tho ncomo will b8 iacalvèd and th8 amount ef Income r8c8lv8ble con b8 m•8Aurèd r•ll8bly. 2.0 Expendlture Llabllltlas are rocognl8•d Is eKp•ndllure a8 soon 88 thtr81s an obllg8tlon to tommlttlng the trust to th• #%pendilutg. All gxp8ndilur8 is accounl8d for on an accrua15 bas15. The cDs15 of generatlng funds cons181 of inveslmgnl rnonagemenl and cert8ln legal fee$. C051 of charitab18 actlv1118¥ Includ?$ grant$ mode 8nd the 8PPOrtlonment of 8UPPOrt shown ITh note 17. Overhead and 8UPPOrt CO818 IhBt cannol be ottrfbuted dlrecl lo a ¢h8rltsble aclvlty M?ve been alk)cated on a percAnt898 b8sI8 of Ilme. spara or cosl 898ln81 vIty. 2.6 Tanglbl& foxed a$s•ts and depreclatlon All ass&ls C051ing more than £1,000 are capitali8?d and all assets are valued al historic cost. Deprecigtbn is ¢hargad on a5set5 using a straight-lin? basis overth8ir e5timat8d lile as follow5.' Museum improvemen18 G8n8ral propety 10- 20% per annum on cost 10 - 20% per annurn on $1 2.7 Invostments Inv0strnen15 held a5 lixed 955ets are includFd in the accoun15 Bt valuation based on their bid price at the balance sheet date. The $tal$menl of finanual activities includes the not gains and 10$6s arlsing on revaluatlons and disposals throughout the year.
Royal Engineers Museum CIO Nots$ to the financial statèments For the year ended 31 December 2026 2 A¢¢ountlng poll¢l•s l¢ontlnuedl 2.8 Debtors Trade and other debtors are Tecognised al the settlement #mount. Pr&paym&nls are valuèd at thg 8mounl prep81d. 2.9 Ca¥h at bank and In hand Cash al bank and in hond includes cash and short temi highly liquid invostm8nls with a short rnaturity of Ihree rnonths or less from th& dale ol acquisition or opening ol the dèposll or simllar account. 2.10 Llabllllleg And provl$long Llabllltles are recogniseci when thera Ss an oblSgallon at the Balance sheet dale as a result of g past event, il is probable that a transfer of economic benefit will be requlred In selllernenl, and the amount of the selllernenl can be esllmaled r81iably. Llabililies are recognised at the amount that the charity anllcipale8 il wlll pay lo sellle the debt or the amount il h88 re¢elved 83 8dvan¢ed paym8nls for th8 goDds Dr sèrvicès il musl provldè. Provislons are m8asured at th8 b9sI 8Stirnat@ of the amounts requlred lo Sotlle th$ obligation. Where Ihe effect of the lime value ol money is maleiial, the provlslon is based on the present value of those amoun15, dlscounled al th$ pre-tgx discount rale that reflects the risks $p$¢ifi¢ lo Iha liablllly. The unwinding of the discount Is r8cognSsed within Int&r&s1 payable and slrnllar charg88. 2.11 Flnanclal Instruments The charfly only has flnanelal assets and Ilnanclal IlabllKles of a kSnd that quallfy as baslc flnanclal Sn$lrum¢nls. 8aslG flnanclal In$lrumonl$ are inilially recognised al transaction value and 8ubsequenlly rneasured al Iheir settl8menl value. 2.12 P•nslon# The charlty trperales a deflned contribution penslon scheme and the penslon charge represents the amounts payable by the charlly lo the fund In respect ol the year. 27
Royal Engineers Museum CIO Notes to the financial statements For the year ended 31 Decèmber 2025 Accountlng policl&s Icontlnuedl 2.13 Hgritago assets When the Mu8eum and Archive Collèction moved to the Ravelin Building in 1986 il encompassed about 15,000 diverse items. Ils accession register now has over 32,000 enlrles of whlch over 17,OJO are objects, 2,200 ar8 books, and 3,000 ar8 maps and prints and the re81 are archiv81 collections ol greater quantity than the accession entry indicates and includes examples such as Wellington's dispatches from the Peninsular War. Around 7.500 btems are on display in 25 galleries. The Library and ils Archive contains about 32,000 books, further 3,000 maps, plans and prints, over 700 films, around 340,000 hi8tori¢ photos, slid85 8nd glades slides 90lng back to the orlglns of the medium and 650,000 arGhSval records and specifications. Trustees believe that il would prove on6rous and &xce8dingly expensivo lo valu8 th8 extensive and diverse historical RE Museum & Library heritage assets. A curatorial registgr of heritage assets is maintained. Trustee8 introduced 8 pollcy In 2011 whèrèby individu81 museum exhlbils arè c8pilali8ed rf their cost exceeds £1,000, Heritage assets acquifed sincg the introduction of SORP 2005 are valued. Heritage assets roprosent museum exhibits within unreslricled funds. 2.14 Tender pollcy Trustees introduced 8 tender policy that covers exp8ndllure'. Bo&$n £2,500 and £5,000 three recorded phong quotations b. Beeen £5,000 and £10,000 three Written quolalions from suppliers c. Over £10,000 Internal t&nder board selection from wrStten quotation8 2.15 Donatgd ser¥lc•¥ and facllltles The cost of donaled services is included In income 81 a valuatlon whlch Is an esllmale of the financial cost born8 by the donor whgrg such cost is quanlifiab19 and measurable. This amount is matched by donated expenditure, apportioned against charitable aGtiville5 an¢J support. 2.16 Crltlcal accountlng estlmatgs and areas of ludgament Eslimale8 and judgements are continually evaluated and are based on historical experlenced and Dth8r factors, including &xp8ctalions of future events th81 are believed lo be reasonable under the circumstances. The Charity does not currently have any significant accounting eslimales or areas of judgement. 2.17 Taxation Royal Engineers Museum Fund is a registered charity and accordingly no provision is considered neGessary for tax¥lign. 28
Royal Englneers Museum CIO Notes to the financial statèmants For the year ended 31 December 2025 3 Donations and legacies Re-stated Total funds 2024 Unrestrlcted Restrlcted Endowment funds fund8 fund5 2025 2025 2025 Total funds 202S Notè Donations Grants Endowment fund subscriptions Donated Servlces and Facllllles Sundry Income Compensation Claim 1,502 445,160 1,502 450,360 9.521 134,619 257 208 1.034 537,817 9,698 126,050 5,200 9.321 134,619 257 ZOB 218 581748 596,467 676815 Incomt from Donations And legacies was £598,487 12024.. £548,7e51 of whlGh £581,748 wa$ unre$lrl¢led 12024.. £549,531), £5.200 was raslricted12024'. £117.S881 and £9,521 was 8ndowm8nl12024.. £Q.6981. 4 Donatlons Unr¥strl¢tsd Re¥trlctsd Endowment lund8 funds fund$ 2026 2026 2025 Total fund$ 2025 Total funds 2024 IndSvidu818 Mu59um vlsllor8 910 693 910 593 580 454 1,034 Don8tod s8rvlc8s and f8cllltl88 Adminislralive ulllity cost Admlnlstratlon salaries 100,382 34,237 97,OS4 30,996 134619 128,050 29
Royal Engineers Museum CIO Notgs to the financial $tat•menis For the year ended 31 December 2025 S Grants Unrestrlcted R•strl¢ted Endowment fund$ fvnds fundg 202S 2025 2025 Total funds 2025 Total fundB 2024 Royal Enginaers Central Charitable Trust IRECCT) Institution of Royal Engineers RE MuseumlLibrary RE Associallon Heritage Lotterty Fund Rochester Bridge Trust M8dway Council National Archives AIM Gr8nl In Ald Norfolk County Counc51 SE Museum Development 60,000 60,OIKI 50.000 6S,817 68,649 65,817 68.S49 84.524 52,763 116.988 eoo 600 3,000 1,600 600 3,000 1,600 290 250.588 924 1,140 260,794 280,794 450 360 537.817 6 Endowment fund sub8crlptlonB Unre$trl¢t•d Re8trlcted Endowment funds funds fund$ 2025 2026 2026 Total fund8 202S Totsl fund 2024 Endowment fund subscrlpllons Tax refund 7,833 1,688 7,833 1,688 7.953 1.743 9.696 30
Royol Englneers Museum CIO Notes to the financlal statements For the ypar ended 31 December 2025 7 Donated $8rvi¢•s and facilities Unr85trlcted R8Strl¢ted Endowm ellt funds 202S Total Total funds 2025 funds 202S funds 2025 funds 2024 Adrninislrative utility co?18 Adrnini81ration $al8ri85 100,382 34,237 100,382 34,237 87,054 30,998 134,619 134,619 128,050 Donated and fa¢ilili•$ havg b•¢n re¢ognlsèd withln donation Incorne Ihls year. Prlor ye8r balances have been re-slaled to Match Ihls treatment. In prtor Yea donated servlces and lac11511es had been allocated across activities. Other tradlng i¢tlvltl•8 Re-stated Total lunds 2024 UnTr81rlcled R¢•lrlcted Endowm fund8 fund8 fund8 2026 2025 2026 Totsl fund8 2026 Learnlng Workshops Prornotional events Venue Hlre Prlmary Relall Café Tradlng Musèum anitan f•• FOREM Research Di9ilal 1rn89 6,802 708 18,090 6,632 20,280 78,088 6,849 1,941 363 6,8D2 708 18.090 8,632 20,280 78,066 6,849 1,941 363 6,307 6,338 12,207 9,149 16.346 77.S60 5,483 2.152 1,470 10 12 14 134.721 134721 137,012 In both 2024 and 2025 the Income from other Iradlng actlvllle5 wa8 unrestrlcled. 9 L•arning Re-slated Unrèstrictsd Rgstrlctod Endowm ent funds 2026 Total Total funds 202S furtds 2025 funds 2025 funds 2024 Educatlon F8rnily Adivilies 4,950 8S3 4,950 863 4.917 1,390 6,307 31
Royal Engingors Mus&um CIO Notes to the financlal 5tstements For the year ended 31 December 2026 10 Promotional events Re-Sl8led Tol81 fund8 2024 Unre8tricted Restrlcted Endowment funds fund5 funds 2025 2025 2025 Total funds 2025 Incomè Event Income 708 708 .338 70e 708 6,338 Expendlture Miscellaneous Cost of Evenl8 Advertising Staff cosls Depreclallon 1,161 4,810 1,744 36,870 68 1,181 4.610 1,744 36,870 58 1.038 7.222 178 34,507 62 44,442 44,442 43,006 Nel expgndilure 11 Vonua Hlre Re-slaled Unr•8trl¢tod R•strl¢t•d Endowment Total Tol81 funds 2025 funds 2025 funds 2025 funds 1025 lunds 2024 Income 15,090 15,090 12,207 15.090 15,090 12,207 Exp&ndllu 3.342 3,342 2,818 3,342 3,342 2,818 Nel income 9.389 32
Royal Englna•rs Musèum CIO Notès to thè finanelal statemènts For the yearended 31 December 2025 12 Prlmary Tradlng Unrestrictgd Re8trict•d Endowmènt funds fvnd$ fvnds 2025 2025 2025 Totsl fund$ 2025 Total fund3 2024 Incom Sal•$ 12,170 12,170 16,272 12,170 12.170 16,272 Exp&ndlturfr Openlng Stock Purchases Closlng Stock 19,6521 14,9741 9,089 19,8621 14,9741 9,089 18.9071 19.8681 9,852 15,5371 5,5371 17,1231 ProflVLoBB 13 Gafé Tradlng Unrestrlctsd Ro8trS¢tod Endowmont Total Total funds 2025 funds 2026 fundB 2025 funds 2025 funds 2024 Income Sal85 44,667 44,667 40,8SS 44,687 44,667 40,855 Expendltur& Opening Slo¢k Stock Purchases Disposable Purchases Equipment Closing Stock 16231 122,8621 11.5451 (5191 1,161 16231 122,8621 11,5451 15191 1.161 13641 {20,7691 11,2411 12.7581 623 124,387} 124.3871 124,5091 ProfiVLoss 16.346 33
Royal Engineers Museum CIO Notas to thg financial statements For th8 yearended 31 December2025 14 Museum entrance fee Re-slaled Totsl funds 2024 Unrestricted Restricted Endowment funds funds funds 2025 2025 2025 Total funds 2025 Entrance ticket Research Pas888 77,999 67 77,999 67 77,435 125 77,560 16 FOREM Unrestrlcted Restrlcted Endowment funds funds funds 2025 2025 2025 Total funds 2025 Total fund8 2024 SubscripliDn8 Donations Glft ASd EOD UK Ltd Sundry Dtposil Account Interest 3,117 353 829 3,117 353 829 2.856 388 769 250 1.032 188 1,390 160 1.390 160
Royal Englneers Museum CIO Ngtes to the flnan¢lal statements For the year ended 31 December 2025 16 Inveslment Incom8 UnTe$trlcted Reslrictèd Endowment funds funds fund5 2025 2025 2025 Total lund5 202S Total funds 2024 Dividends Bank interest 52,730 1.667 62.730 2.016 41,491 6,024 349 54.397 349 54,746 47,515 BlackRock charge a hèadline fee of 0.4% against tho ptroled funds of AFCIF. As gt 31st Docgmber 2015. 10% of the fund w8s oulsouTced to third p8rty man8get8 through an op•n £r¢hlIeclu Investment Inilialive. Identifylng m8na9ement cost8 a98in81 individual funds in Ihe AFCIF is thef0 very complicaled. Bla¢kRock consulted with the Charities Commission who dèclared lo Bla¢kRo¢k Investment M8n8g8r8 Ih8t th8r8 is Tho r•quiram•nt to idlniify management casts agalnst pooled Inve6tments. In both 2024 and 2025 the Investment Income was unre8trlcted. 35
Royal Engineers Museum CIO Notes to th* financial ststsments For the year ended 31 December 2025 17 Charitsble Activitios Re-slaled Dlrect costs 2025 Support costs 2025 Totsl 2025 Total 2024 FOREM Engagernenl Leaming Operations Collecllons Management Note 18 Ntsle 19 Note 20 Note 21 Note 22 5,018 348,059 58.429 287,466 65.422 5,01S 475,000 60,632 308,167 74,616 1,WO 358,423 61,537 297,107 75,059 126,941 2,203 20,702 9,194 169 039 764.390 923.430 791,186 Expenditure on ¢haritable activities was £923.430 12024.. £791,188) ol whlch £815,331 unreslrklad 12024.. £787,100) and £108,099 was re$trlcled {2024'. £4.0861. 18 FOREM 2025 2024 Support ¢tssts Smudgers Talk Mlscellaneous costs 230 830 S,016 5,015 1,060 36
Royal Engineers Museum CIO Notes to the financial statèmènts For the year onded 31 December 2026 19 Engagement 2025 2024 Dlrect ro¥ts Pèmanenl Galleries Temporary Exhlblllons Communily Engagernenl Proje018 1,854 799 135 124,153 7,860 409 1,146 9,588 126,941 19,001 Support costs Re-slaled Dockyard Rent Seminats and cours88 Travel and 8ub81slence IT support Legal Fees Professlonal Fe&8 Insurance Subscripllons Mi8¢8llaneou8 SUPPOrt Volunteers expenses Staff costs Depreciation Restal8d Valu 19,097 9.177 100 2.740 2,987 1,456 $,018 3,233 170 3,733 1,399 290.192 16.217 993 874 2,923 6,878 3,358 174 3,289 2,104 320,499 16,759 128.8871 348.059 337,422 476 000 358,423 37
Royal EngineerB Museum CIO Notes to the flnanclal ststements For the year ended 31 Dgcèmber 2025 20 Learnlng Re-stated 2024 2025 Dlrèet CO8ts Equiprnenl Brid9e BuildinglPrlzes 1,737 466 1,375 444 2,203 1,819 Support ¢o$ts Sttminars and courses Travel and subslslence IT 8UPPOrt Le9al FeBs Prof¥5sional Fe08 Insuranca Subscriptions Mi$¢ollaneous c0818 Staff costs Depreciallon 183 291 219 2,000 3.358 173 2,446 49,305 408 259 995 109 1,751 3,233 170 2.878 49,892 431 58,429 59,718 38
Royal Enylnoers Museum CIO Notes to tho financial statements For the year ended 31 December 2025 21 Operations Re-stated 2024 2025 Direct costs Maiketlng Fundraising Maintenance 16,666 793 3,343 9,908 10,449 20,702 20,355 Support costs Seminars and courses Travel and subslslence IT 8UPPOrt Legal Fees Professional Feès Insurancg Subscriptions Mlscellaneou8 SUPPOrt COBts Volunteer Expense8 Staff costs Deprecialion Donated Services and Faclli1I98 966 2,218 4,370 219 1,875 4,S27 2,984 3,879 202 129,372 2,234 134,619 105 1,774 14,933 109 1,641 4,358 2,7e6 3.838 134 116,787 2,257 128,050 287.466 276,752 308 167 297 107 39
Royal Englnè•rÈ Musèurn CIO Notès to thè financial statèmÈnt$ For the yoar 8ndad 31 D8cernber 2025 22 CpllgGt4on$ Monoyement Re-Sl8led 2024 2025 Dirètt co&t Conservation Equipm¢nl Collection Management 6,422 1.781 3,241 12,2501 4,311 205 2,98 12,250 A¥i41 (Adlibl 9,194 19,746 Support CO8ts Semln8rs and eouwes Travel and $ub$i$itnr IT $upport Leg81 Fees Prof88sional Feel In8urance Sub8criptson8 Mk5ts11aneou5 5UPPOrt cost Volunteer ExpenEes Staff costs Depred81ion 781 1,077 995 109 1,313 291 219 875 3,358 303 2,519 576 54,065 1,341 3,233 310 2,944 383 43,370 1,385 65,422 55,313 75 058 23 Nat Incomolloxpondltuièl Th1$ 5& slalod 8fter thargkng.. 2025 2024 Depreciatlon olianglblB red asBel8', - oyffled by the charity Re¥er501 ol Htslorlc 0gpro¢iaiion on H161odG Assets Audiioff& r8munwAtlon 20,799 128,8871 3,967 20,332 3,290 DurlrtE ttte ye8r, noTrustces rocelved any rernuneration12024.. ÉNIll. Durlngitte year, noTrustèes recelverj any bBnellts In klnd12O24.' £NIII. Thr&0 Tru8toe recelved ielmbuisement of expenses In the ¢urientyg81 ioialllnE £2,561.5212024.. ENIII. 40
Royal EngineerB Museum CIO Notes to the financial statements For the year ended 31 Dècember 2025 24 Staff costs Staff GIx818 w8rè 8$ follows: 2025 2024 Wages and salaries Soslal seGurily costs P&n6ion coslB 509,733 45,650 34,729 468,617 35,339 30,792 590 112 534,748 The average number of persons employed by thè Charfly during th8 year was as follows.. 2025 No. 24 2024 No. 33 Management and 8dministrallon ol th& charily The average hoadcounl &ypro$9gd as fulkllrne equivaten16 W88.. No. 17 No. 15 Management and admlnlslr8llon ol the charity No employee recelved remun¢rallon amounllng lo more than £80,000 In either year. The total employment benefits Includlng employer penslon contributions ol the key management personnel were £67.24812024'. £62,885) 25 T•nglble flxèd a8$ets Herltage Plxture8 & Oth¢r fixèd assets flttlng$ osset8 Total Cogt Al 1 January 2025 Additions Transfer beeen A8sel Cla8888 21,832 79,161 1,147,534 1,246,627 6,123 6,123 196,2921 96,292 At 31 December 2025 118 124 79,161 1057 365 1 254 $50 D•pr&clailon At l J8nu8ry 2025 Charge lor the year Transfer between Asset Classes Reversing Depreciation lo dale on Heritage Assets 67.359 1.038,793 1,106.152 3,190 17,810 20,799 128,8871 28,887 128,8871 128,8871 At 31 December 2025 70.549 1027 $16 1098,064 Net book value Al 31 December 2025 118 124 1565B5 Al 31 December 2024 21,832 11,802 108,741 142,375 41
Royal Englneers Museum CIO Notes to the financial statamgnts For the year ended 31 December 2025 26 Fixed asset Investments Listed securltlgs Market val At 1 January 2025 Sold Revaluations 1,297,079 1117,0001 99,915 At 31 Dec8mber 2025 1279 994 Hlstorlcal cost 112564D Investments at market value ¢ompr589: 2026 2024 Listed investments 1 279 994 1 297 079 All th& flxed a88et Investments are held In the UK Matorlal Inv08tments All invested funds at the balancè sh8@t d8t8 Werè hald In thè BLK Armed Forces Charille3 Growth and Income Fund, managed by BlackRo¢k Inveslrnenl Managers Limlled, 42
Royal Engingers Mus9um CIO Notes to the financial statements For thè yg8r &nd•d 31 Dècèmbèr 202S 27 Dèbtors 2025 2024 Du9 wlthln one year Trade debtors Other debtors Prepayments and accrued Income 2,656 16.855 118 2.474 14,336 5,300 19.629 28 CredltorB: Amounts falllng duè wlthln one year 2025 2024 TTad8 cr8dilors other orediloTB Accrua18 and dèferred incomè 16,347 169,433 2,833 11,4731 176,387 2,906 188 613 177 820 43
Royal Englngors Musgum CIO Notes to the flnanclal ststements For the year ended 31 Docèmbar 2025 29 Statement of funds Current year Brought Forward Transfer8 Gain81 Carried inlout (Loysasl Forward Incomg Expgndlturo Désignated funds Designated projocts FOREM Colleth'on 138,364 19.703 6.505 38,805 5.849 133,7711 18,0421 15,0151 133,3S6 20,537 3.256 {3.2601 162 572 167 148 Genoral funds Generfjl 721445 819 563 Total Unrestrfcled funds 253 181 766 099 858 349 245 931 Endowmentfunds Endowment fund 1 339 204 202 000 99 915 1246 988 Rostrlcted funds Medway Council VE80 Bridge Bulldlng RECCTIBR200 Archive & Lib HLFI War winnlng Engineerlng Nal Lollery AwardlPeaGe Proj National Archlves 3,000 eoo 11,7011 14681 11,4551 1103,183) 117,000 11,2771 161 1,299 290 4,301 13,817 386 1,584 1S6 5,766 1,663 1,600 Total Restricted Funds 108 099 117000 Total of funds 1599 960 781168 966 448 99 915 I S14 S9S 44
Royal Eng5neers Museum CIO Notes to th¢ finanGial ststements For the year ended 31 December 2024 29 Statement of funds IContlnu&dl Prior year Brought FoNard Income Expendlture Transfers Galnsl inlout (Lossesl Carrled Forward Deslgnated funds Designated proieds FOREM Collection Museum improvements 217.86D 15,281 6.505 5,117 5,482 121,1341 165,4791 11,NOI 136,364 19.703 6.505 239.646 22 194 162,572 General funds General 281,140 722.297 809.962 102,866 90,809 Total Unr$slrl¢t¢d fund$ 520,786 732,896 832 158 168.345 253.181 Endowment funds Endowment fund 880 902 402 000 46213 1339 204 Restrlcled funds Tran8fomalionlBahrain Arts Council Capturing Cullures Arts Councll Unlock AIM Bridge Buildlng RECCTIBR200 Archlve & Lib BR300 InfraslruclurelSlor9 RECCTIBR300 Infra & Store HLF Nal Lottery AwardlPeaco Proj Queen's Gurkha Engineers 116,667 1116,6671 98 1981 600 {4441 11,4561 156 5,756 7,212 116,988 111e,9881 1,663 2,088 1.663 12.0881 Total Restricted Funds 127 728 117588 4,086 233 655 7,575 Total of funds 1.529416 860,573 836,242 46.213 1,599.980 45
Royal Englneers Museum CIO Notès to thè financial statements For the year ended 31 Dec&mber 2025 30 Analy$l$ of net assets between fund5 Current year Unrestricl8d Restrict8d Endowm8nt funds funds funds Total funds Total funds 2025 2026 2026 2025 2024 Tangible fixed assets Fixed asset Inveslmenis Debtors Current as5els Credllors due within ong year 148,472 85,000 19,629 181,443 188,6131 8,113 166,586 142,375 1,194,994 1,279,994 1,297,079 19,629 22,110 247,000 316,216 1188.613} 1177,820) 13,663 61,994 1246 988 1614 $95 1599 960 PrSor ye8r Unr881ricled Re8lri¢led Endowment funds funds funds Total funds Total funds 2024 2024 2024 2024 2023 Tanglble flxed assets Flxed a888t Investments Debtors due after more than 1 year Debtor$ Curr&nl a88als Creditor8 due within one year 13e,619 5,756 142,375 1,297,079 1,297,079 154,873 848,866 22,110 272,272 1177,8201 22,110 52,389 316,216 769,743 1177,8201 (146,0891 1,819 42,125 253 181 1339 204 1 599 960 1679 782 31 Penslon commltments The charty operates a defined conlribullons penslon scheme. The assets of the scheme are held separately from thos8 of the charity in an independently adminisl$red fund. The pension cost charge rèprèsents contributions payablg by the charity lo the fund and amounlod to £34,729 {2024'. £30.7921.
Royal Engineers Museum CIO Notss to the financial statem8nts For the year ended 31 December 2025 32 Reconciliation of net movement in funds to not ¢a$h flow from operating aGtivities. Total funds 2025 Total funds 2024 Nel mov8mènl in funds Add ba¢k depreciation charge Re8laled Depro¢i8tion V8lu8 on H8ritage Assets Deduct interest incomè shown in investing activitles Deduct gains l add back ltsssas on inv8stments Decrease (IneaSe) in $lock Decrease lincreasel in dÈblor8 Increase Idecreasel in creditor8 185.3661 20.799 128.887} 154.7461 199.9141 25 2,481 10,793 70.544 20,332 147,5151 146,2131 {3,0041 30,279 31,731 Not c88h uyed In opèrallnp actlvltle$ 234814 56,154 33 Related partlos dl$GIoBura8 Colon$l Riehard Bouka Hawklns MBE ADC and Major General Davld W Soulhall CBE, Trust989 01 Royal Enginèers Muséurn are also Trustees of the Royal Enginèars Central Charltsble Tw$1 IRECCTI ttsr which transactlons have taken place during thè year. Ourfng the year RECCT paid the Royal Englneers Musgum grants tolalling £60,00012024- £50,000). In addlllon, RECCT colleclod subscriptlon incDme on bahalf trf RE Muséum totalllng £11,14612024 . £7,833) and r6lmbur8ed admin recharges of £4.51312024 - £3,750} whlch was transferied during the year. As of 31 December 2025 no balanc8 was owed from RECCT12024.' £nill. The Royal EngSneers Mu$eum olso paid over t58,89312024- 75,4321 to RECCT durlng the ye8r In relation lo recharges for $alarieg and p&n$ion ¢o$l$, as well as admin recharges. A8 al 31 Decernber 2025 a balanca of £46 was owed to RECCT12024'. £nill. The Royal Enginèers Museum18 a conne¢lod ¢harfty to the Institution of Royal Engineers and shares the same charter and Trustees. During tho yegr Ihg Institution of Royal Engineers paid thè Royal Engineers Museum grants lolalling £65,81712024- £71,894}, and no sundry recharges. As 0131 December 2025 no balance wa8 owed to the Royal Engin&ers Mus6um12024'. £nill. Thè Royal Engln•ers Museum reimbursed £482,73912024- £477,262) lo the Institution ol Roy81 Englnèers relat1ng to salaries and pensions charges. AS of 31 December 2025, no bal8neè was owed by the Royal Englneers Museum12024.' £nil). Colond Richard Bouka Hawkins MBE ADC, Trustee of the Royal Englneers Museum is also a Tru8lep of the Royal Engineers Association IREAI for which Iransactlons have taken place durlng the year. Duriny thè year. the REA paid Ihe Royal Engineers Museum grants lolalllng £50,000 and £8,54912024- £50,000 and £8613}. As Df 31 DeG8mbeT 2025, no balance was owed by tho REA 12024. £nil}. Colonel Richard Bouke Hawkins MBE ADC, Trustee of the Royal Engineers Museum is also a Trustee of the Royal Engineers Headquarter Me$$ IRE HQ Mess) for which transactions have taken place during the year. During the year the RE HQ Me85 made no payments {2024 - £2551 to the Royal Engineers Museum. A3 of 31 December 2025 no balance was owed by RE HQ Mess 12024 £nlll. 47