**Charity number: 249882**
## **Institution of Royal Engineers**
**Trustees' report and financial statements for the year ended 31 December 2023**
**Institution of Royal Engineers**
|**Contents**|Page|
|---|---|
|**Trustees’ report**|1 - 7|
|**Reference and administrative details of the charity, its trustees and advisers**|8 - 9|
|**Independent auditor's report**|10 - 13|
|**Statement of financial activities**|14|
|**Balance sheet**|15|
|**Statement of cash flows**|16|
|**Notes to the financial statements**|17 - 28|
## **Institution of Royal Engineers**
## **Trustees’ Report**
## **For the year ended 31 December 2023**
The Trustees present the annual report and the audited financial statements of the Charity for the year ended 31 December 2023. The financial statements have been prepared in accordance with the accounting policies set out at Note 1 to the accounts and comply with the Charity’s Charter, the Charities Act 2011 and the Charities SORP FRS 102. Trustees consider that in preparing these financial statements they have taken into account all information that could reasonably be expected to be available (including levels of reserves held); thus, the going concern basis of accounting is deemed appropriate and there are no material uncertainties.
## **OBJECTIVES AND ACTIVITIES**
The OBJECT of the Institution of Royal Engineers, as set out in its Royal Charter and Bye-Laws (Revised 2009), is to promote and advance the science of Military Engineering and to promote military efficiency, particularly the military efficiency of the Corps of Royal Engineers. In furtherance of this OBJECT the Institution has continued to:
- a. Publish a Journal and Supplement to the Journal to promote education and to disseminate information and advice;
- b. Maintain and develop a Museum, Library and Archive;
- c. Own the Museum, Library and Archive and all the exhibits, artefacts, medals and book accessions for the benefit of the Museum, Library and Archive;
- d. Arrange joint professional meetings with other Institutions and professional bodies;
- e. Administer trust funds in connection with awards for academic and military excellence to officers and soldiers;
- f. Maintain memorials owned by the Institution;
- g. Raise funds by way of subscriptions, donations and otherwise;
- h. Maintain Napier House, the property of the Institution;
- i. Maintain and develop professional registration with Engineering UK and the Engineering Council at Engineering Technician, Incorporated Engineer and Chartered Engineer levels;
- j. Develop where possible joint working practices with the Royal Engineers Vocational Education Training Trust (REVETT), (Charity Number 1068709), other Institutions and the Royal School of Military Engineering Group.
## **OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT**
The Trustees confirm that they have had due regard to the guidance provided by the Charity Commission for England and Wales on public benefit when reviewing the Institution’s aims and objectives, and in planning future activities, and consider that they have met the requirements in full measure. In particular:
- a. The Royal Engineers Museum Library and Archive Collection, which is owned by the Institution, is open to the general public. In addition, the Museum is open to parties of school children, providing a clear public benefit.
- b. The promotion of the military efficiency of the Royal Engineers is a matter of national importance and public benefit. As a Licensed Member of the Engineering Council, the Institution takes part in the self-regulation of the Engineering Profession, as authorised by the Privy Council, and so contributes to that wider public benefit.
- c. The education of Members of the Royal Engineers is also of public benefit, since the number of beneficiaries from the Regular Army, Reserve Army, and retired Members, represents an amply sufficient proportion of the populace.
1
## **Institution of Royal Engineers**
## **Trustees’ Report (continued) For the year ended 31 December 2023**
## **ACHIEVEMENTS AND PERFORMANCE**
Membership levels have continued to be constantly around the 10,000 mark across the period, with the number of Fellows increasing again (+13%). Whilst Army Reserve numbers have dipped slightly, there has been a commensurate uplift in Retired Members as those individuals completed military Service and moved categories. The initiative undertaken last year aimed at encouraging a greater level of The Staff Corps to join the Institution has yet to deliver an increase in numbers and further work has been commissioned to look at ways to improve uptake.
The new business continuity process, established last year to lessen the impact of an individual staff member being unable to perform their duties, was tested in May and proved effective. The staff pairing system was shown to be resilient and all business outputs were able to be maintained and legal/legislative requirements met. The electronically Bi-Annual Update (established in 2022) continued to be warmly received and ensured that the membership remained up-to-date and linked to the Institution. In addition, quarterly social media posts have provided Members with timely reminders of the breath of activity and benefits available. Sustained communications have remained a key component of the engagement strategy to:
- a. Promote Military Engineering through activities: joint professional meetings, battlefield studies, the provision of multimedia material and the holding of debates. Support included reminding Members of civilian Professional Registration opportunities and how to obtain said qualifications;
- b. Encourage individuals (and groups) to engage, contribute and collaborate with the Institution to achieve its OBJECT, with particular emphasis on publishing high quality articles in the Journal;
- c. Sponsor a broad range of events, conferences, symposia, and workshops able to be delivered by the Corps of Royal Engineers, whilst ensuring that key lessons from such meetings are captured and made available to as wide an audience as possible, and stored for future study; and
- d. Continue to be a fully inclusive learned body whose activities and decisions consider the requirements of all Members, including minority groups.
The Royal Engineers Museum Charity – a separately Registered Charity (Charity Number 295173) sharing the same Trustee Board and Governance documents as the Institution – has continued to be supported and received annual grants totaling £63.2K. Preparation of a new Constitution for the Royal Engineers Museum, Library and Archive for the charity to become a Charitable Incorporated Organisation has neared completion.
The Institution has continued to operate under a License granted by the Engineering Council to assess candidates for Engineer Technician, Incorporated Engineer and Chartered Engineer. Professional Registration numbers have again risen, with all 3 categories (Technician, Incorporated and Chartered) meeting their respective annual targets by September. The Institution remains proud to be able to offer Members the opportunity to attain a nationally recognised qualification that demonstrates the professionalism and competency of Military Engineers trained at the Royal School of Military Engineering Group. The main attractor for Members to maintain their connection with the Institution after military Service has continued to be the retention of a Professional Registration qualification. Total Registrants held in December was 1500; comprising Chartered Engineers (44), Incorporated Engineers (61) and Engineering Technicians (1395).
During 2023 a wide-ranging Member Services Programme was delivered that focused on different areas of Military Engineering, encompassing sustainability, digitisation, strategic transport networks and flooding. Several professional development opportunities were provided, including a joint professional meeting with National Highways/Allied Rapid Reaction Corps, a Digital Conference, a Regimental Study Day, the perennial meeting with the Institution of Civil Engineers, which this year considered _‘Responding to Flood Emergencies: Developments over the last 10 years’_ , and the Contemporary Engineering Challenge that once again produced a number of high-quality articles for the Journal. The Institution continued to present a number of prizes to reward Military Engineering excellence and, through the Royal Engineers Historical Society, sponsored a series of monthly webinars and delivered a hugely informative Conference on the anniversary of the Russian invasion of Ukraine. The event _‘Learning from Ukraine – One year On’_ was extremely well attended and Robert Fox of the Evening Standard gave a stimulating and thought-provoking keynote.
2
## **Institution of Royal Engineers**
## **Trustees’ Report (continued) For the year ended 31 December 2023**
## **FINANCIAL REVIEW**
## **Investment House & Policy**
All Institution investments have been, since 2002, managed by BlackRock as part of the Armed Forces Charities Growth & Income Fund (formerly the Armed Forces Common Investment Fund).
The Objective of the Fund is unchanged and seeks to provide a return on investment (net of fees) over a period of 5 or more consecutive years beginning at the point of investment, generated through an increase to the value of the assets held by the Fund and/or income received from those assets. The Fund has a flexible approach to asset allocation and seeks to achieve its investment objective through a variety of asset classes. The Fund is actively managed and this may vary without limitation depending on market conditions and other factors at the Investment Manager’s (IM) discretion in accordance with the Fund’s investment policy.
## **Investment Performance**
Investments delivered dividends of £39,298 in 2023 (2022: £37,919). During the period 1 January to 31 December 2023, the performance of the distribution units in the fund was +4.3% (2022: -10.6 %) after fees and expenses. Since launch in September 2002, the fund has produced a return of +305.5%, +6.8% (2022: +330.1%, +7.4%). The fund's benchmark since inception has returned +344.2% and +7.2%.
## **Reserves Policy**
The Reserves Policy remains unchanged; to maintain 12 months operating costs in reserve. The Institution's current unrestricted reserves are £1,013,954 (2022: £996,307) which Trustees consider is consistent with this policy. Current restricted reserves are £572,933.
## **Fund Designation**
The component funds of the Institution are:
- a. General Fund (Unrestricted Fund).
- b. Memorial Fund (Unrestricted Designated Fund).
- c. Professional Registration (Unrestricted Designated Fund).
- d. Royal Engineers Historical Society (REHS) (Unrestricted Designated Fund).
## **Memorial Fund**
The Memorial Fund is invested as a designated fund from which a small sum is drawn each year. Direct charitable expenditure was £10,119 (2022: £11,596).
## **Accounts**
The Trustees confirm that the accounts comply with the current statutory requirements and with the requirements of the Institution's Charter.
Under the Bye-Laws of the Institution of Royal Engineers, the Council is responsible for the preparation of the financial statements of the Institution for each financial year.
3
## **Institution of Royal Engineers**
## **Trustees’ Report (continued) For the year ended 31 December 2023**
In preparing the financial statements the Council is required to:
- a. Select suitable accounting policies and apply these consistently;
- b. Make judgements and estimates that are reasonable and prudent;
- c. State whether applicable accounting standards and statements of recommended practice have been followed; and
- d. Prepare the financial statements on the going concern basis.
The Treasurer is responsible for keeping a correct statement of the assets and liabilities of every one of the funds pertaining to the Institution and shall keep such records, prepare such statements of accounts as are required annually by the auditors and periodically by the Council and which enable the Trustees to meet their responsibility to prepare financial statements for each financial year, which give a true and fair view of the incoming resources and application of resources of the Charity during the year and of its state of affairs at the end of the year. The Trustees are also responsible for ensuring that the financial statements comply with the Charities Act 2011. The Treasurer shall make proper arrangements for the care of and disbursements made from the funds belonging to the Institution. The Trustees are responsible for safeguarding the Charity’s assets and hence for taking reasonable steps for the prevention and detection of error, fraud, and other irregularities.
## **FINANCIAL SUMMARY**
## **General**
Net income before other recognised gains and losses was £14,534 (2022: Net expenditure of £32,941). Net gains on investment were £2,910 (2022: Net losses £160,704)
## **Balance Sheet**
The accumulated funds increased by £17,444 to £1,586,887 (2022: decreased by £193,645 to £1,569,443).
Notes to the Statement of Financial Activities and Balance Sheet provide supplementary information against each funding activity.
## **PLANS FOR THE FUTURE**
## **Membership**
Membership plans have three components.
## a. **Communications.**
(1) Exploitation of the consolidated digital processes that have improved membership engagement through the combination of an annual Members’ Survey, a bi-annual update, quarterly social media feeds and regular email push notifications to inform Members.
(2) Expanding the modern website, therein enhancing the user experience, and building up content, in order to truly create a world-class Knowledge Hub for Military Engineering.
(3) Capitalising on the established social media channels, _inter alia_ , LinkedIn, X, Facebook, and YouTube to inform Members of current and future Military Engineering opportunities.
(4) Publishing high-quality products, namely the Journal, its Supplement, and special periodicals to notify the membership of developments and innovation in Military Engineering.
4
## **Institution of Royal Engineers**
## **Trustees’ Report (continued) For the year ended 31 December 2023**
## b. **Professional Development.**
(1) Providing a balance of online, hybrid and live activities that allow individuals to strengthen professional networks and connect to as much of the _body politic_ as possible.
(2) Promoting Professional Registration at each level to expand the number of Engineering Technician, Incorporated Engineer and Chartered Engineer registrants.
(3) Upholding Engineering Council standards through the enabling work of the Professional Registration Committee.
## c. **Support.**
(1) Protecting the status afforded by Her Majesty’s Revenue and Customs as a recognised and accredited professional body.
(2) Connecting with the respective Veteran, Army Reserve and overseas Land Forces Military Engineer communities to promote the many benefits of Institution membership.
(3) Continually reviewing the Fellows qualifying criteria, enhancing the offer and honing what the Institution expects of Fellows.
## **Education**
Educational development initiatives continue to encompass:
a. Publishing high quality articles in the Journal tri-annually to widen perspectives, celebrate innovation, impart knowledge and promote debate appropriate to the advancement of Art and Science of Military Engineering.
b. Sponsoring further development activity to review, consolidate and enhance the production of the History of the Corps of Royal Engineers Volume XIII – _‘The Years of Interventionism and the Return to Contingency’_ due to be published in 2024.
c. Leading the delivery of an annual joint professional meeting between the Institution of Civil Engineers and Institution of Royal Engineers.
d. Seeking out additional opportunities to work collaboratively with other professional bodies and learned societies.
e. Continuing to reward Members for individual academic and Military Engineering excellence via the sponsorship of appropriate prizes and awards that celebrate and acknowledge success.
f. Maintaining access to the Pasley Research Centre and James Forbes Exhibition Gallery within the Royal Engineers Museum, which collectively provide outstanding Archive and Library resources to facilitate investigation and study.
g.
Widening further the Royal Engineers Historical Society membership base.
h. Publicising the historic Military Engineering Collection.
i. Establishing a series of electronic-lectures to create highly accessible and enduring products based upon a compendium of educational Military Engineering subjects.
## **Governance**
On a requirements basis, work together with the Engineering Council Privy Council & Governance Panel and Privy Council Office to implement any changes to the Charter and Bye-Laws approved by Trustees.
5
## **Institution of Royal Engineers**
**Trustees’ Report (continued) For the year ended 31 December 2023**
## **INDEPENDENT AUDITORS**
Kreston Reeves LLP were retained as the Corps’ auditors.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **ORGANISATION**
The Council delegates specific aspects of the Institution’s activities to five standing committees:
- a. The Finance and Assurance Committee (FAC).
- b. The Professional Registration Committee (PRC).
- c. The Member Services Committee (MSC).
- d. The Royal Engineers Museum Committee (REMC).
- e. The Royal Engineers Historical Society (REHS).
The Institution's Secretariat comprises a Chief Executive, Treasurer, four other full-time employees and one part-time employee.
## **TRUSTEES**
The Trustees who served during the year are detailed on page 8.
## **Appointment of Trustees**
New Trustees are either appointed as _Ex-Officio_ on assumption of specified appointment, or are nominated by Council (or Members) and are elected at an Annual General Meeting (AGM) in accordance with the Charter and Bye-Laws.
## **Council Membership**
**Officers.** The President and Vice Presidents are elected for a period of up to five years.
**Elected Members.** Elected Members of Council may serve for up to five years.
**Ex-Officio Members.** _Ex-Officio_ Members are Council Members (Trustees) by virtue of appointment. Such Members assume Trusteeship on appointment and relinquish (resign) the same when leaving the appointment.
## **Trustee Induction**
**Training.** A Trustee Training Programme is in place; this has been augmented with online training. All Trustees of Royal Engineer Charities, and all Trustees are encouraged to attend training provided by one of two consultants. Provision is made for each Trustee to receive training within 6-months of appointment and attend refresher training after 3-years’ tenure.
## **Indemnity**
An order from the Charity Commission of England and Wales authorising the Trustees to provide indemnity insurance for themselves out of the charity funds was issued on 15 September 2001 and this has been continued.
6
**Institution of Royal Engineers**
**Trustees’ Report (continued) For the year ended 31 December 2023**
## **MEMBERSHIP**
The Institution of Royal Engineers consists of Fellows, Members, Apprentice Technician Members, Honorary Fellows and Honorary Members, and any other category the Council may wish to create. Fellows and Members comprise officers, warrant officers and lower ranks of the Regular and Reserve Army element of the Corps of Royal Engineers, serving or retired. Membership may also be offered to those serving, or who have served, in the Engineer arm of the Land Forces of the Commonwealth, former Dominions, Colonies or Dependencies as Council shall determine. Similarly, membership may be offered to civilians with appropriate backgrounds who support the OBJECT of the Institution as determined by Council. Honorary Member and Honorary Fellow are offered as it appears in the Bye-Laws. Honorary Associate Membership is no longer offered; existing Honorary Associate Members continue as a legacy category.
## **CONNECTED CHARITIES**
The Royal Engineers Museum has been registered, with the approval of the Charity Commission of England and Wales, as a separate charity under the provisions of the Charities Act 1960. Bye-Law 25 of the Institution's Charter was accepted for registration purposes without the need to execute a separate Charter or Constitution. The Royal Engineers Museum (Charity Number 295173) remains a connected Charity and shares the same Charter and Trustees as the Institution as a whole but is reported on separately.
## **RISK STATEMENT**
The Risk Register was reviewed during 2023 by the Chair FAC and Council. Trustees continue to be satisfied that adequate systems are in place to mitigate all the risks identified, the principal ones remaining:
a. **Business plan not deliverable or able to deliver on agreed priorities.** Trustees continue to ameliorate the said risk through a combination of measures: funding an endorsed prioritised programme with regular review points, maintaining sufficient Unrestricted Reserve funds of at least one year’s operating costs, retaining the Institution’s membership of the Armed Forces Charities Growth & Income Fund, and by receiving professional, independent investment management advice.
b. **Lose the ability to register Members within the provision of the License granted by the Engineering Council.** Whilst the probability of such an occurrence continues to be assessed as low, Trustees have again designated the maintenance of the License a high priority. Mitigation measures include developing further resilience within the Volunteer Peer Group, conducting training on a training needs analysis basis, and monitoring internal and external perception, adapting as required, in order to deliver sustained improvement.
c. **Governance structures become inappropriate or fail, particularly relevant during the migration of the Royal Engineers Museum to a CIO.** Trustees have remained fully involved in the decision-making processes to ensure alignment between the Institution and the new Royal Engineers Museum governance arrangements, directed that the Engineering Council Privy Council & Governance Panel be consulted throughout the change programme, have been actively engaged in the development of a new Royal Engineers Museum Constitution, and have ensured that the specialist legal advice has been sought. A new mitigation measure has also been added to the Risk Register to ensure sufficient representation on the new Royal Engineers Museum Governance Board to allay the risk of divergence from Corps and wider Sapper Family aims. Trustees have also ensured that there continues to be appropriate representation at Council and on all of the five standing committees, reviewed all outputs and activities to ensure compliance with the Royal Charter and overseen the regular evaluation of requirements and standards to ensure relevance.
7
## **Institution of Royal Engineers**
**Reference and administrative details of the Charity, its Trustees and Advisers for the year ended 31 December 2023**
## **Trustees**
**The Council of the Institution of Royal Engineers was formed of the following individuals:**
## **President**
|Major General N J Cavanagh CB|2018|Re-elected December 2023|
|---|---|---|
|**Vice Presidents**|||
|Major General D W Southall CBE|2020||
|Brigadier R C Brown|2019||
|Brigadier G J Boxall MBE|2022|Completion of tenure 2023|
|Brigadier J D Webster|2023|To be elected at AGM 2024|
|Colonel J L Prichard*|2020||
|**Members**|||
|_Ex Officio_|||
|Comd 8 Engr Bde|Brigadier D J Bickers MBE|Completion of tenure 2023|
||Brigadier S J Carvel|July 2023|
|Comd 25 (CS) Engr Gp|Colonel J D Webster|Completion of tenure 2023|
||Colonel S J Graham|To assume January 2024|
|Dep Hd Plans NCGI and CRE (Geo)|Colonel P M Hammett|February 2022|
|Corps Colonel|Colonel R B Hawkins MBE ADC November 2022||
|Corps Colonel Army Reserves|Colonel A J Cooper QVRM TD November 2023||
|Corps Sergeant Major|WO1 M D Elliott MBE*|Completion of tenure 2023|
||WO1 S W A Eardley*|June 2023|
|_Elected_|||
|Colonel D Gray VR|2018|Completion of tenure 2023|
|Lieutenant Colonel H M M Stamp MBE|2020|Completion of tenure 2023|
|_Co-opted_|||
|Major General R A M S Melvin CB OBE|2016||
|Lieutenant Colonel S F Scullion|2016||
|**Chief Executive**|||
|Mr J D Acornley*|2019||
|**Treasurer**|||
|Major (Retired) I Sidebottom*|2013||
|NB * indicates Members of FAC|||
|**Charity Registered Number**|||
|249882|||
8
## **Institution of Royal Engineers**
## **Reference and administrative details of the Charity, its Trustees and Advisers (continued) for the year ended 31 December 2023**
## **Principal Office**
Regimental Headquarters Royal Engineers Brompton Barracks Chatham Kent ME4 4UG
## **Independent Auditor**
Kreston Reeves LLP Chartered Accountants Statutory Auditor Montague Place Quayside Chatham Maritime Chatham Kent ME4 4QU
## **Bankers**
Lloyds Bank plc Piccadilly Branch PO Box 1000 London BX1 1LT
## **Solicitors**
Furley Page LLP 39 St Margaret’s Street Canterbury Kent CT1 2TX
## **Investment Manager**
BlackRock Investment Managers Ltd 12 Throgmorton Avenue London EC2N 2DL
Approved by the Trustees and signed on behalf of the Trustees
**11th April 2024**
9
## **Institution of Royal Engineers**
## **Independent auditor’s report to the Trustees of Institution of Royal Engineers**
We have audited the financial statements of Institution of Royal Engineers (the ‘charity) for the year ended 31 December 2023 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).
The financial statements have been prepared in accordance with Accounting and Reporting by Charities in preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.
This has been done 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:
- give a true and fair view of the state of the group's and the parent charity's affairs as at 31 December 2023 and of its income and application of resources for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **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.
10
## **Independent auditor’s report to the Trustees of Institution of Royal Engineers (continued)**
## **Other information**
The other information comprises the information included in the Annual report, other than the financial statements and our Auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statement or 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:
- the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## **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.
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:
11
## **Independent auditor’s report to the Trustees of Institution of Royal Engineers (continued)**
## _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:
- Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including health and safety) and fraud; and
- Assessment of identified fraud risk factors; and
- Review of cash expenditure to confirm no evidence of personal benefit; and
- Challenging assumptions and judgements made by management in its significant accounting estimates; and
- Performing analytical procedures to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and
- Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and
- Reading minutes of meetings of those charged with governance; and
- Physical inspection of tangible assets susceptible to fraud or irregularity; and
- Review of significant and unusual transactions; and
- Identifying and testing journal entries, in particular any manual entries made at the year-end for financial statement preparation.
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:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, 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.
- Obtain an understanding of internal controls 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 estimates and related disclosures made by the Trustees.
12
## **Independent auditor’s report to the Trustees of Institution of Royal Engineers (continued)**
- 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 exists 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 a material uncertainty exists, we are required to draw attention in my Auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of my Auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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 Chatham
Date:
Kreston Reeves LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.
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## **Institution of Royal Engineers**
## **Statement of financial activities for the year ended 31 December 2023**
|||**Unrestricted**|
**Restricted**|**Total**|Total|
|---|---|---|---|---|---|
|||**funds**|**funds**|**funds**|funds|
||**Note**|**2023**|**2023**|**2023**|2022|
|||**£**|**£**|**£**|£|
|**Income and endowments from:**||||||
|Donations and Legacies|3|**511,518**|**-**|**511,518**|480,616|
|Other Trading Activities|7|**2,573**|**-**|**2,573**|1,558|
|Investments|8|**39,298**|**-**|**39,298**|37,919|
|Charitable Activities|15/16|**7,288**|**-**|**7,288**|6,199|
|**Total income**||**560,677**|**-**|**560,677**|526,292|
|**Expenditure on:**||||||
|Raising Funds|7|**20,189**|**-**|**20,189**|4,004|
|Charitable Activities|9|**525,954**|**-**|**525,954**|555,229|
|**Total expenditure**||**546,143**|**-**|**546,143**|559,233|
|**Net expenditure before revaluations**||**14,534**|**-**|**14,534**|(32,941)|
|Net gains / (losses) on revaluations of
investment assets|22|**2,910**|**-**|**2,910**|(160,704)|
|**Net movement in funds for the year**||**17,444**|**-**|**17,444**|(193,645)|
|Total funds at 1 January 2023||996,510|572,933|1,569,443|1,763,088|
|**Total funds at 31 December 2023**||**1,013,954**|**572,933**|**1,586,887**|**1,569,443**|
The Statement of financial activities includes all gains and losses in the year.
All activities relate to continuing operations.
The notes on pages 17 to 28 form part of these financial statements.
14
## **Institution of Royal Engineers**
## **Balance sheet as at 31 December 2023 Charity Number: 249882**
|**Balance sheet**
**as at 31 December 2023**
**Charity Number: 249882**|**Balance sheet**
**as at 31 December 2023**
**Charity Number: 249882**|**Balance sheet**
**as at 31 December 2023**
**Charity Number: 249882**|**Balance sheet**
**as at 31 December 2023**
**Charity Number: 249882**|**Balance sheet**
**as at 31 December 2023**
**Charity Number: 249882**|
|---|---|---|---|---|
|**Note**
**£**
**£**
£
£
**Fixed assets**
Tangible assets
21
**588,418**
589,207
Investments
22
**994,414**
991,504
**1,582,832**
1,580,711
**Current assets**
Debtors
23
**33,308**
25,880
Cash at bank
**25,127**
32,866
**58,435**
58,746
**Creditors:**amounts falling due within one year
24
**(54,380)**
(70,014)
**Net current assets**
**4,055**
(11,268)
**Net Assets**
**1,586,887**
1,569,443
**Charity Funds**
Restricted funds
25
**572,933**
572,933
Unrestricted funds
25
**1,013,954**
996,307
**Total funds**
**1,586,887**
1,569,240
**2023**
2022|||||
||||||
|||**1,586,887**||1,569,443|
|||**572,933**
**1,013,954**||572,933
996,307|
|||**1,586,887**||1,569,240|
The financial statements were approved by the Trustees on 11 April 2024 and signed on their behalf, by:
**Brigadier J D Webster, Trustee**
**Colonel R B Hawkins MBE ADC, Trustee**
The notes on pages 17 to 28 form part of these financial statements.
15
## **Institution of Royal Engineers**
## **Statement of Cash Flows For the year ended 31 December 2023**
||**Note**|**Note**|**2023**|2022|
|---|---|---|---|---|
||||**£**|**£**|
|**Net cash used in operating activities**|29||**(47,826)**|(27,526)|
|**Cash flows from investing activities**|||||
|Interest and dividends|||**39,298**|37,919|
|Purchase of tangible fixed assets|||**-**|-|
|**Cash provided by investing activities**|||**39,298**|37,919|
|**Cash used in financing activities**|||||
|Increase (decrease) in cash and cash|||||
|equivalents in the year|||**(7,739)**|10,596|
|Cash and cash equivalents at the beginning of the year|||**32,866**|22,270|
|**Total cash and cash equivalents at the end of the year**|||**25,127**|32,866|
|**Analysis of changes in net debt**|||||
||**At 1**|**Jan**||**At 31 Dec**|
||**2023 **||**Cashflows**|**2023**|
|||**£**|**£**|**£**|
|**Cash and cash equivalents**|||||
|Cash|**32,866**||**(7,739)**|**25,127**|
16
## **Institution of Royal Engineers**
**Notes to the financial statements For the year ended 31 December 2023**
## **1 General administrative information**
Institution of Royal Engineers is an unincorporated charity in England & Wales with the registration number 249882. The address of the registered office is Headquarters Royal Engineers, Brompton Barracks, Chatham, Kent, ME4 4UG. The Charity's principal objectives continued to be: To promote and advance the science of military engineering and to promote military efficiency, particularly the military efficiency of 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 Charities SORP (FRS102) Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), and the Charities Act 2011.
Institution of Royal Engineers meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
The financial statements are presented in UK sterling, which is the Charity's functional currency, and rounded to the nearest pound.
## **2.2 Preparation of the accounts on a going concern basis**
The Trustees assess whether the use of going concern is appropriate, i.e., whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the Charity has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the Charity's ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.
## **2.3 Fund accounting**
General unrestricted funds represent unrestricted assets which are expendable at the discretion of the Trustees in the furtherance of the objects of the charity. Such funds may be held in order to finance both working capital and capital movement
Designated funds are amounts which have been put aside out of unrestricted funds at the discretion of the Trustees.
Restricted funds represent grants, donations and legacies received which are allocated by the donor for specific purposes.
Investment income gains and losses are allocated to the appropriate fund.
17
**Institution of Royal Engineers**
## **Notes to the financial statements For the year ended 31 December 2023**
## **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.
## **2.5 Expenditure**
Liabilities are recognised as expenditure as soon as there is an obligation to committing the charity to the expenditure. All expenditure is accounted for on an accruals basis
Grants payable are payments made to third parties in the furtherance of the charitable objectives of the Trust and are always authorised by trustees.
The costs of raising funds consist of investment management and certain legal fees.
Cost of charitable activities includes grants made and the apportionment of support costs shown in note 9.
Overhead and support costs that cannot be attributed directly to a charitable activity have been allocated on a percentage basis of time, space and cost against the activity.
## **2.6 Heritage assets**
The Institution owns a large number of historic military artefacts that are displayed in the Royal Engineers Museum and Library. These include medals, drawings, manuscripts, 3-dimensional artefacts and published works that are up to 300 years old. These assets are not capitalised due to the significant costs involved in valuing them.
The Institution will only acquire heritage assets that are relevant to the Museum collection, whilst disposals are restricted to gifts to similar military museums.
## **2.7 Tangible fixed assets and depreciation**
Assets costing more than £1,000 are capitalised and are valued at historic cost. Depreciation is charged on assets using a straight – line basis over their estimated life on the following basis:
Computers - 20% straight line General property - 10% straight line
## **2.8 Investments**
Investments held as fixed assets are included in the accounts at valuation based on their bid price at the balance sheet date. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.
## **2.9 Debtors**
The financial statements were approved by the Trustees on 11 April 2024 and signed on their behalf, by: Trade and other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid.
18
**Institution of Royal Engineers**
## **Notes to the financial statements For the year ended 31 December 2023**
## **2.10 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.
## **2.11 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.
## **2.12 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.
## **2.13 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.
## **2.14 Pensions**
The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year.
## **2.15 Tender policy**
Trustees introduced a tender policy that covers expenditure:
- a. Between £2,500 and £5,000
- b. Between £5,000 and £10,000
- c. Over £10,000
## **2.16 Taxation**
Institution of Royal Engineers is a registered charity and accordingly no provision is considered necessary for taxation.
## **2.17 Critical accounting estimates and areas of judgement**
The financEstimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Charity does not currently have any significant accounting estimates or areas of judgement.
19
## **Institution of Royal Engineers**
## **Notes to the financial statements For the year ended 31 December 2023**
|**3 Donations and Legacies**
Subscriptions (Note 4)
Grants (Note 5)
Registration fees
Donations
Donated assets
Donated services and facilities (Note 6)|**Total**
Total
**funds**
funds
**2023**
2022
**£**
£
**363,639**
346,101
**3,500**
3,500
**80,016**
73,812
**830**
308
**-**
-
**63,533**
56,895|
|---|---|
||**511,518**
480,616|
Income from donations and legacies was all unrestricted in 2023 and 2022.
|**4 Subscriptions**
Regular officers
Other members
Serving soldiers
Members of the Reserve
Tax refund
Fellowship
Eng Tech
I Eng
C Eng
**Support Costs**
Audit
Insurance
Administration
Depreciation
Post and telephone
Donated services support costs
Staff costs
**5 Grants**
Officer Cadet prize fund|**£**
£
**132,666**
138,497
**91,159**
66,934
**65,983**
81,443
**12,909**
632
**16,911**
16,186
**8,903**
7,900
**31,092**
30,954
**2,464**
2,075
**1,552**
1,480|
|---|---|
||**363,639**
346,101|
||**1,225**
1,044
**260**
271
**1,708**
1,930
**174**
174
**1,904**
2,022
**9,543**
8,729
**65,484**
69,254|
||**80,298**
83,424|
||**283,341**
262,677|
||**£**
£
**3,500**
3,500|
20
## **Institution of Royal Engineers**
## **Notes to the financial statements For the year ended 31 December 2023**
|||**Total**|Total|
|---|---|---|---|
|||**funds**|funds|
|||**2023**|2022|
|**6 **|**Donated services and facilities**|||
|||**£**|£|
||Gas|**1,845**|1,783|
||Electricity|**2,103**|2,103|
||Water and sewage|**849**|849|
||Community charge|**5,686**|5,686|
||Administrative utilities|**1,505**|1,460|
||Administrative salaries|**51,545**|45,014|
|||**63,533**|56,895|
|**7 **|**Trading Activities**|||
|||**£**|£|
||**Income**|||
||Publication sales|**2,573**|1,558|
|||**£**|£|
||**Expenditure**|||
||Corps History|**20,189**|4,004|
||All income and expenditure on trading activities was unrestricted in 2023 and 2022.|||
|**8 **|**Investment Income**|||
|||**£**|£|
||Dividends|**38,115**|36,778|
||Dividends - Memorial Fund|**1,181**|1,139|
||Bank interest|**3**|2|
|||**39,298**|37,919|
All investment income in 2023 and 2022 was unrestricted.
21
## **Institution of Royal Engineers**
## **Notes to the financial statements For the year ended 31 December 2023**
## **9 Analysis of Expenditure by activities**
|**Analysis of Expenditure by activities**|||||
|---|---|---|---|---|
||**Direct costs**|**Support**
**costs **|**Total funds**|Total funds|
||**2023**|**2023**|**2023**|2022|
||**£**|**£**|**£**|£|
|Subscriptions (Note 4)|**-**|**80,298**|**80,298**|83,424|
|Publications (Note 10)|**47,325**|**65,418**|**112,743**|121,391|
|Maintain Memorials (Note 11)|**(1,068)**|**11,187**|**10,119**|11,596|
|Professional Effectiveness (Note 12)|**8,616**|**10,621**|**19,237**|27,908|
|Grant making (Note 13)|**85,657**|**20,547**|**106,204**|110,418|
|Digitisation (Note 14)|**4,120**|**42,476**|**46,596**|51,250|
|Napier House (Note 15)|**631**|**6,388**|**7,019**|8,897|
|RE Historical Society (Note 16)|**1,964**|**5,234**|**7,198**|8,380|
|Awards (Note 17)|**12,629**|**-**|**12,629**|12,748|
|Professional Registration (Note 18)|**44,493**|**79,418**|**123,911**|119,420|
||**204,369**|**321,585**|**525,954**|555,433|
All expenditure on charitable activities in 2023 and 2022 was unrestricted.
## **10 Publications**
|**Direct costs**
Distribution costs
Publications
**Support costs**
Audit
Administration
Insurance
Post and telephone
Computer support costs
Staff costs
Donated service support costs
Depreciation
The
**11 Maintain Memorials**
**Direct costs**
Refund From Previous Year Activities
**Support costs**
Audit
Administration
Post and telephone
Insurance
Staff costs
Donated service support costs|**£**
£
**21,754**
27,186
**25,571**
25,918|
|---|---|
||**47,325**
53,104|
||**1,225**
1,044
**1,088**
1,159
**260**
271
**714**
758
**4,100**
5,244
**49,468**
49,677
**7,948**
7,209
**615**
2,925|
||**65,418**
68,287|
||**112,743**
121,391|
||**£**
£
**(1,068)**
1,068|
||**(1,068)**
1,068|
||**211**
180
**36**
80
**48**
51
**278**
291
**4,345**
4,380
**6,269**
5,546|
||**11,187**
10,528|
|||
||**10,119**
11,596|
22
## **Institution of Royal Engineers**
## **Notes to the financial statements For the year ended 31 December 2023**
|**12 Professional Effectiveness**
**Direct costs**
RUSI / Inst Conference
JPMs
Fellow Event
Focusses Symposium
Sponsored Symposia
Other in Year Opportunities
**Support Costs**
Insurance
Post and telephone
Wolfe Society Subscription
Staff costs
Donated service support costs
**13 Grant Making**
**Direct costs**
RE Museum fund
RE Library fund
Comms Hub Grant
RE Awards Dinner
**Support costs**
Insurance
Post and telephone
Staff costs
Donated service support costs
**14 Digitisation**
**Direct costs**
IT costs
**Support costs**
Audit
Insurance
Post and telephone
Staff costs
Donated service support costs|**Total**
Total
**funds**
funds
**2023**
2022
**£**
£
**-**
6,000
**7,155**
5,149
**781**
4,246
**180**
751
**500**
680
**-**
456|
|---|---|
||**8,616**
17,282|
||**111**
116
**48**
51
**6**
6
**4,187**
4,907
**6,269**
5,546|
||**10,621**
10,626|
||**19,237**
27,908|
||**£**
£
**63,257**
32,379
**-**
29,638
**20,000**
24,250
**2,400**
5,000|
||**85,657**
91,267|
||**222**
232
**143**
152
**8,243**
8,271
**11,939**
10,496|
||**20,547**
19,151|
||**106,204**
110,418|
||**£**
£
**4,120**
8,373|
||**211**
180
**111**
116
**48**
50
**35,837**
36,985
**6,269**
5,546|
||**42,476**
42,877|
||**46,596**
51,250|
23
## **Institution of Royal Engineers**
## **Notes to the financial statements For the year ended 31 December 2023**
|**tes to the financial statements**
**r the year ended 31 December 2023**||
|---|---|
|**15 Napier House**
**Income from charitable activities**
Rental Income
**Direct costs**
Maintenance
**Support costs**
Audit
Administration
Insurance
Post and telephone
Donated service support costs
Staff costs
Depreciation
**16 RE Historical Society**
**Income from charitable activities**
Membership
**Direct costs**
Publications
**Support Costs**
Audit
Administration
Insurance
Post and telephone
Staff costs
Donated service support costs
**17 Awards**
Medals
Prizes
Refund from Previous Years|**Total**
Total
**funds**
funds
**2023**
2022
**£**
£
**3,600** 3,650|
||**631**
923|
||**211**
180
**36**
81
**278**
291
**48**
51
**5,670**
4,952
**145**
150
**-**
2,269|
||**6,388**
7,974|
||**7,019**
8,897|
||**£**
£
**3,688**
2,549|
||**1,964**
2,435|
||**127**
108
**22**
23
**56**
58
**143**
152
**4,287**
5,010
**599**
594|
||**5,234**
5,945|
|||
||**7,198**
8,380|
||**£**
£
**2,534**
3,018
**11,445**
9,730
**(1,350)**
-|
||**12,629**
12,748|
24
## **Institution of Royal Engineers**
## **Notes to the financial statements For the year ended 31 December 2023**
|||**Total**|Total|
|---|---|---|---|
|||**Funds**|Funds|
|||**2023**|2022|
|**18 **|**Professional Registration**|||
|||**£**|£|
||**Direct costs**|||
||Registration & Marketing|**44,493**|35,455|
||**Support costs**|||
||Audit|**1,014**|864|
||Administration|**887**|1,101|
||Insurance|**278**|291|
||Post and telephone|**1,666**|1,769|
||Donated service support costs|**9,027**|8,278|
||Staff costs|**66,546**|71,662|
|||**79,418**|83,965|
|||**123,911**|119,420|
|**19 **|**Net income/expenditure**|||
||This is stated after charging:|||
||Depreciation of tangible fixed assets:|||
||‑owned by the charity|**(789)**|5,367|
||Auditor's remuneration|**4,224**|3,600|
||During the year, no Trustees received any remuneration (2022: £NIL).|||
||During the year, no Trustees received any benefits in kind (2022: £NIL).|||
||During the year, no Trustees received any reimbursement of expenses (2022: £NIL).|||
## **20 Staff costs**
|Staff costs were as follows:|||
|---|---|---|
||**£**|£|
|Wages and salaries|**202,453**|213,834|
|National Insurance|**17,494**|18,403|
|Pension costs|**18,594**|18,059|
||**238,541**|250,296|
|The average number of persons employed by the Charity during the year was as follows:|||
||**No.**
|No.|
|Publications|**2**|2|
|Management and administration of the charity|**13**|12|
||**15**|14|
|The average headcount expressed as full-time equivalents was:|||
||**No.**
|No.|
|Publications|**2**|2|
|Management and administration of the charity|**5**|5|
||**7**|7|
|The Secretary occupies Napier House as part of his conditions of employment.|||
|The pension cost represents amounts payable to the Corps of Royal Engineers Pension Fund, a defined|||
|contribution scheme.|||
|The total employment benefits including employer pension contributions of the key management personnel|||
|were £73,052 (2022: £74,141).|||
|The number of employees whose benefits (excluding employer pension|||
|costs) exceeded £60,000 was:|**2023**|2022|
||**No**|No|
|In the band £60,001 - £70,000|**1**|1|
25
## **Institution of Royal Engineers**
## **Notes to the financial statements For the year ended 31 December 2023**
**21 Tangible fixed assets**
|**Cost**
At 1 January 2023
At 31 December 2023
**Depreciation**
At 1 January 2023
Charge for the year
At 31 December 2023
**Net book value**
At 31 December 2023
At 31 December 2022
**22 Fixed asset investments**
**Market value**
At 1 January 2023
Revaluations
At 31 December 2023
**Historical cost**
**Investments at market value comprise:**
Listed investments|**General, IT**
**Restricted**
**Total**
**and Office equipment**
**Artefacts**
**£**
**£**
**£**
**16,274**
**572,933**
**589,207**|**General, IT**
**Restricted**
**Total**
**and Office equipment**
**Artefacts**
**£**
**£**
**£**
**16,274**
**572,933**
**589,207**|
|---|---|---|
||**16,274**
**572,933**
**589,207**||
||**(789)**
**-**
**(789)**
**-**
**-**
**-**||
||**(789)**
**-**
**(789)**||
||**15,485**|**572,933**
**588,418**|
||16,274|572,933
589,207|
||**General **
**Fund**
**£**
**961,708**
**2,823**|**Memorials**
**Total**
**Fund**
**£**
**£**
**29,796**
**991,504**
**87**
**2,910**|
||**964,531**|**29,883**
**994,414**|
||**452,161**|**13,811**
**465,972**|
|||**2023**
2022
£
**994,414**
991,504|
All the fixed asset investments are held in the UK.
## **Material investments**
All invested funds were held in the Armed Forces Charities Growth & Income Fund, managed by BlackRock Investment Managers Limited.
26
**Institution of Royal Engineers**
## **Notes to the financial statements For the year ended 31 December 2023**
|**23 Debtors**
JPA Subscriptions
BlackRock
Other Debtors
**24 Creditors:**
**Amounts falling due within one year**
Other creditors
Accruals and deferred income
**25 Statement of funds**
**Current Year**
**Brought**
**Income**
**Expenditure**
**Transfers**
**Forward**
**in/out**
**£**
**£**
**£**
**£**
**Designated funds**
Memorials Fund
**(72,392)**
**1,181**
**(10,119)**
**-**
Professional Registration
**115,332**
**115,124**
**(44,493)**
**-**
RE Historical Society
**(20,531)**
**3,688**
**(7,198)**
**-**
**22,409**
**119,993**
**(61,810)**
**-**
**General funds**
General fund
**974,101**
**440,684**
**(484,333)**
**-**
Total Unrestricted funds
**996,510**
**560,677**
**(546,143)**
**-**
**Restricted funds**
Institution Artefacts
**572,933**
**-**
**-**
**-**
Total of funds
**1,569,443**
**560,677**
**(546,143)**
**-**
Prior Year
Brought
Income
Expenditure
Transfers
Forward
in/out
£
£
£
£
Designated funds
Memorials Fund
(57,108)
1,139
(11,594)
-
Professional Registration
42,466
108,321
(35,455)
-
RE Historical Society
(14,706)
2,549
(8,374)
-
(29,348)
112,009
(55,423)
-
General funds
General fund
1,219,503
414,283
(503,810)
-
Total Unrestricted funds
1,190,155
526,292
(559,233)
-
Restricted funds
Institution Artefacts
572,933
-
-
-
Total of funds
1,763,088
526,292
(559,233)
-|**23 Debtors**
JPA Subscriptions
BlackRock
Other Debtors
**24 Creditors:**
**Amounts falling due within one year**
Other creditors
Accruals and deferred income
**25 Statement of funds**
**Current Year**
**Brought**
**Income**
**Expenditure**
**Transfers**
**Forward**
**in/out**
**£**
**£**
**£**
**£**
**Designated funds**
Memorials Fund
**(72,392)**
**1,181**
**(10,119)**
**-**
Professional Registration
**115,332**
**115,124**
**(44,493)**
**-**
RE Historical Society
**(20,531)**
**3,688**
**(7,198)**
**-**
**22,409**
**119,993**
**(61,810)**
**-**
**General funds**
General fund
**974,101**
**440,684**
**(484,333)**
**-**
Total Unrestricted funds
**996,510**
**560,677**
**(546,143)**
**-**
**Restricted funds**
Institution Artefacts
**572,933**
**-**
**-**
**-**
Total of funds
**1,569,443**
**560,677**
**(546,143)**
**-**
Prior Year
Brought
Income
Expenditure
Transfers
Forward
in/out
£
£
£
£
Designated funds
Memorials Fund
(57,108)
1,139
(11,594)
-
Professional Registration
42,466
108,321
(35,455)
-
RE Historical Society
(14,706)
2,549
(8,374)
-
(29,348)
112,009
(55,423)
-
General funds
General fund
1,219,503
414,283
(503,810)
-
Total Unrestricted funds
1,190,155
526,292
(559,233)
-
Restricted funds
Institution Artefacts
572,933
-
-
-
Total of funds
1,763,088
526,292
(559,233)
-|**2023**
2022
**£**
£
**16,954**
16,228
**9,584**
9,652
**6,770**|
|---|---|---|
|||**33,308**
25,880|
|||**2023**
2022
**£**
£
**50,156**
66,414
**4,224**
3,600|
|||**54,380**
70,014|
|||**Gains/**
**Carried**
**(Losses)**
**Forward**
**£**
**£**
**87**
**(81,243)**
**-**
**185,963**
**-**
**(24,041)**|
||**22,409**
**119,993**
**(61,810)**
**-**|**87**
**80,679**|
||**974,101**
**440,684**
**(484,333)**
**-**|**2,823**
**933,275**|
||**996,510**
**560,677**
**(546,143)**
**-**|**2,910**
**1,013,954**|
||**572,933**
**-**
**-**
**-**|**-**
**572,933**|
||**1,569,443**
**560,677**
**(546,143)**
**-**|**2,910**
**1,586,887**|
||Brought
Income
Expenditure
Transfers
Forward
in/out
£
£
£
£
(57,108)
1,139
(11,594)
-
42,466
108,321
(35,455)
-
(14,706)
2,549
(8,374)
-|Gains/
Carried
(Losses)
Forward
£
£
(4,829)
(72,392)
-
115,332
-
(20,531)|
||(29,348)
112,009
(55,423)
-|(4,829)
22,409|
||1,219,503
414,283
(503,810)
-|(155,875)
974,101|
||1,190,155
526,292
(559,233)
-|(160,704)
996,510|
||572,933
-
-
-|-
572,933|
||1,763,088
526,292
(559,233)
-|(160,704)
1,569,443|
27
**Institution of Royal Engineers**
## **Notes to the financial statements For the year ended 31 December 2023**
## **26 Analysis of net assets between funds**
|**Current Year**
Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Prior Year
Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year|**Unrestricted Restricted**
**Total**
**funds**
**funds**
**funds**
**2023**
**2023**
**2023**
**£**
**£**
**£**
**15,485**
**572,933**
**588,418**
**994,414**
**-**
**994,414**
**58,435**
**-**
**58,435**
**(54,380)**
**-**
**(54,380)**|
|---|---|
||**1,013,954**
**572,933**
**1,586,887**|
||Unrestricted
Restricted
Total
funds
funds
funds
2022
2022
2022
£
£
£
16,274
572,933
589,207
991,504
-
991,504
58,746
-
58,746
(70,014)
-
(70,014)|
||996,510
572,933
1,569,443|
## **27 Pension commitments**
The charity operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £18,594 (2022: £18,059).
The financial statements were approved by the Trustees on 11 April 2024 and signed on their behalf, by: **28 Related party transactions**
All transactions with related parties are disclosed in the Trustees Report and notes to the accounts. The Institution is controlled by the Council ('the Trustees').
## **29 Reconciliation of net movement in funds to net cash flow from operating activities**
|Net movement in funds
Add back depreciation charge
Deduct interest income shown in investing activities
Deduct gains / add back losses on investments
(Increase) / decrease in debtors
(Decrease) / increase in creditors
**Net cash used in operating activities**|**Total**
Total
**funds**
funds
**2023**
2022
**£**
£
**17,444**
(193,848)
**-**
5,367
**(39,298)**
(37,919)
**(2,910)**
160,704
**(7,428)**
(629)
**(15,634)**
38,799|
|---|---|
||**(47,826)**
**(27,526)**|
28