Charlty nUm￿r. 249882 Institution of Royal Engineers Trustees, report and flnanclal statements for the year and6d 31 Dec8mber 2025 ## **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 - 29| Institution of Royal Engineers Trustees. Report For the year ended 31 Decernber 2025 The Trustees present the annual report and the audited financial statements of the Charity for the year ended 31 Oecember 2025. Th@ financial ststemenls have been prepared in accordance with the accountiny poliGie8 sel out al Note 1 to the accounts and GDmply with the Charity's Royal 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 lo be available lincluding18vels of rese￿e8 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 Roygl Engineers, as sel out In ils Royal Charter and Bye-laws (Revlsed 2025), is to promote and advance the science of Military Engineering and lo promote military efficiency. p8rticularly the mllilary efficiency of the Corps of Royal Engineers. In furtherance of this OBJECT the Instllulion has contlnued lo.. a. Publish The Royal Engine8rs Journal, and ils Supploment, to promote oduc311en and lo dls$8minale information and advice., b. MaSnlaln and develop a Museum, Library and Archive,. ¢. Own a Museum, Libiary and Archlve and all the exhibits, artefacls, medals. and book acc&sslons for the benefit of the Museum, Llbrary and Archlve., d. Affange jolnl professlonal meetlngs wSlh other Inslltullons, prol8$$ional bodi98, and learne societies.. e. Administer trust funds In ccnnecllon wllh awards for academlc and mllltary ex¢ell¢nc& to officers and $oldler8', funds by way of sub5criplions, donalSons and Othe￿80. g. Malnlgin Napier House, the property of the In8lltulion,' h. Malnlaln and develop professional reglslration wlth Englneering United Kingdom and EngSneering Council at Engineering Technician, Incorporated Englneer, and Chartered Englneer levels.. Develop, where posslble, lolnl worklng praclieès wlth th¢ Royal Engineers Voaalional EduGalion Tralning Trust IREVETTI. (Charity Number 10687091, Dlher Inslilullons, and the Royal School of Military Engineering Group. OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT The Trustees confirrn that they have had due regard to the guidance provided by the Charity Commission for England and Wales on public benefit when reviewing the Inslilulion's alms and objectives. and In planning future aclivilies. and consider that they have mel the requirements in full mgasure. In partiGular.' Th8 Royal Englneers Museum Charftablg Incorporated Organisalion Foundation, LibTary and Archive 'Designaled Collection,, which Is owned by the In5tilulion, is open lo the general public. In addition, the Royal Engineers Museum is open lo parties of school children, providin9 a Glear public benefit. b. The promotion c*f the military effiGienw of the COTPS of Royal Engineers 1$ a maller of nallonal importance and public benefil. As a Licensed Member of the Engineering Council, the In5tilulion lakes part in the 5elf-regulation of the engineering profession. as aulhorised by the Privy CounGII. and so conlribules to that wider public benefit. The education of Members of the Corps of Royal Engin88rs is also of public benefit, Since the number ol beneficiaries from the Regular Artny, Reserve Arfny, and retired Member5, represents an amply sufficient proportion of the populace. Institution of Royal Englneers Trust08s' Raport (contlnuedl For the yoarended 31 Dgcembar 2025 ACHIEVEMENTS AND PERFORMANCE Membership levels have remained Dn par with previous yearg atjugl over 10,000. The number of Members attaining frllowship grew again, with 208 Fellows now held that represented a GE% Increase, Work also contlnued lo amplify the benefits of membership lo the Army Reserve lo encourage a greater proportion to join, togelh$r with engaging like-minded engineers from overseas Land Force5. Social medSa avenues were further expkiited to reconne¢l with those who have completed military Service. Across the year the In51ilution looked to find ways lo broaden appéal and strengthen the 'offer' lo thè body politic, the Corps of Royal Englneers and wlder Mllilary Englneerlng G()mmunity. Communication has been central to raising the level of understanding of Military Engineering and profegsionalism. Th& bi3nntJal update again provÉd popular, together with The Royal Engineers Journal and perlodicals. On 22 May 2025. the Institution celebrated the 150th anniv8rsary of its &stablishmenl as The InslSlute of Royal Engineers. A commemoratlve edition of The Royal Engineers Journalwas produced lo mark that important milestono that looked back over the last 150 yèars and r8-publish6d a series of seminal artlcles, Selected by the Corp8 Hlslorian and Editor, that prornoled Innovatlon, inlfodu¢ed new le¢hnologies or tactics, and that had been particularly influential or have been written by Iconlc Royal Engineers. The Inslitutlon Continued to.. a. Promote Military Engineering through acllvllies.. loinl PTofe5sloTral meetlngs, battlefield sludles, the provision of multimedia material and the holdlng of clebales. Provlded support that reminded Memb8r8 of clvlllan Professlonal Regislfation opportunltias and how to oblaSn yaid quallNcation8', b. Encourage Individuals land groups) lo engag8, contrlbule, and collaborate with Ihg Inslllullon to achleve11s OBJECT, wllh partl¢ulai •mph8sls on publlshing hlgh quality Irticles in The Journ81,' c. Sponsor a broad range of even18. conferences, symposla, 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 lo as wide an audlence as posslble. and $lored for future study., and d. Be a fully inclu8lve learned body whose aclvltl&s and deGlslons Gonsider the requlremenls of all Members, including minority groups. Thg Royal Engineer5 Museum, Llbrary and ATchlve (Registered Charlty Numb8r 2951731 was placed into suspended animatlon at midnight 31 January 2025, with a Transfer of Assets made al 00.01 on 1 Fgbruary 2025 into The Royal Engin8ers Museum Charitable Incorporated Organlsallon ICIOI Foundat4on (Regislered Charlty Number 12110211. The lille of the Colledion, together with all associated artefa¢l$, wa8 fully retalned by the Institution (including any new i18ms acquired) under a formal Loan Agreement be￿een the Royal Engineers Museum CIO Foundation and Institution. The Loon Agreement remains expressly for the loan. care, and development of the Collecllon, as amended from Ilme to lime, as described by the OBJECT of the Royal Engineers Museum CIO Foundation. The Lease of BR200 The Ravelin Building, Buildlng 300 {Block 401, Building 301 IBlock 381, and Building 302 (Block 391 was not transferred and Temains an agreement between the Secielary of Stale for Defence l¢/0 Dgfence Infrastnjclure Organisation) and Inslltullon. The new Royal Englneers Museum CIO Foundation subsequently received annual grants lolaling £65.8K. The Inslilulion has continued lo operate under License from the Engineoring Council lo assess candidates for Engineer Techniclan, Incorporated Engineer and Chartered Engineer. The lolal Regislranls held in December was 1578,. comprising Chartered Engineer81511, Incorporated Englna8rs1681 and Engineering T8chnicians114571. A dlverse Member Servl¢És Programme was deliv8red that encompassed the full range of Military Engineerin9, including Managing Machine Learning lo D&liver Artifi¢i81 InlBlligence and Improvements in Safely and Efficiency, revlewing lessons from the Francis Scott Key Bridge Collapse, considering How has the engineenng commurpity come together in limes of national n88d? as well as meeting with Industry Partners to debate the engineering demands of Lines of Communic&lion. In addition, the Military Engineering and Innovation Prize produced a raft of world-class article5 for publlcatlon, and a number of annual prizes were once agaln sponsored Ihal rewarded the attainment of Military Engineering excellence. with the Royal Engineers Histori¢81 Society maintaining ils sèries of 8Xtr8mely popular and informative monthly webinars. ## **Institution of Royal Engineers** ## **Trustees' Report (continued) For the year ended 31 December 2025** ## **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 £44,121 in 2025 (2024: £41,364). During the period 1 January to 31 December 2025, the performance of the distribution units in the fund was +12.8% (2024: +8.1 %) after fees and expenses. ## **Reserves Policy** The Reserves Policy remains unchanged; to maintain at least 12 months operating costs in reserve and an additional element to mitigate against the withdrawal of MoD donated assets. The total reserves figure is therefore assessed as c£600K. The Institution's current free reserves are £931,166 (2024: £929,412) which Trustees consider is consistent with this policy. Current restricted reserves are £572,933 (2024: £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). - e. Institution Artefacts (Restricted Fund). - f. Officer Cadet Prize Fund (Restricted 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 £5,289 (2024: £5,454). ## **Accounts** The Trustees confirm that the accounts comply with the current statutory requirements and with the requirements of the Institution's Royal 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 Englnoern Trusteès, Report Icontinuedl Forth? year ended 31 DeC•m￿r 2025 In preparing the financial slalemonts Ihe Coundllg required to: a. Select suitabl• accountlng pollcles and apply these conslsl&ntly', b. Make judgements and •slimale8 that are reasonable and prudent; c. State whether 8ppll¢abl• accountlng standards and $tstements of recommendéd pracllce have been fr>llowed.' and d. Prepare the finanGl81 slal•m&nl8 on the going concern basls. The Treasurer15 responslble for keeping o correct 8ts1ement of the assets and liabllrtl•8 of every one of th• funds pertaining to the Inslltutlon and shall keep such recor(Is, prepare Such 31alements of accounts as are requir•d annually by the audltofs and pgrlodic81ty by the Council and which enable the TnJstèe$ to meet their responslbilily to prepare financi81 slalements for each financial year, which give a true and falr vlew of the Incoming resources and applicat￿ll of fe80urces ol the Charity during the year and ef118 81ale of affair8 al the end of the year. The Truslees Arè 81$0 responsibk? for ensuring that Ihg financlal slalemenlg comply with the Chaiilie5 Act 2011. The Tr&asurer 8hall make prop&r arrangements for the care of. and dl8bur80menl made from, the funds bdonglng lo the In$lllullon. The Tru$t8es are responsible for saf8guardlng the Charity'$ assets and hence for tsklng r•a8onable ileps for the pr•v•nllon and detection of error, Iraud, and other liregularilies. FINANCIAL SUMMARY Ggnoral Nel Income bgforo other racognl8ed galn$ ond10ss8g w88 £47,851 12024.. Net Income £39.1831. Net golns on Investment were £86,30712024'. N•1 galnB £42.815) 8•lanc• Sheet The accumulated fund8 InGrea¥ed by £134,1SB lo £1,802.843 {2024.' Increased by £81,796 10 £1,e68,6851. Nol86 to the Statement of Flnanci•l A¢llvlll&s and Balancg Sheet provide 8upplomenl8ry InformAtlon ag&ln$t tach fundlng acllvity. PLANS FOR THE FUTURE M•mb•rnhlp Membership plan5 continue lo be b8sed upon three plll8rs. Communlcatlon$. Slrenglhenlng membershlp engagement through the annu81 'Pulse Survey, and bl8nnu81 update, whilst informing Members of the late31 developments wilhln Military Englneering specifically, and the wldgr engineerlng sector more generally. Enhanoing furthér the eonlenl ol the Instiluuon webslte, whil$l refining the user experience, to creatg a on8•sloTrshop Militsry Engineering portal. 12) Publishing world-clags artIC￿S in The Royal Enginee￿ Journ81, and special periodicals. to inform the body politK about 8dvancemenl$ in Military Engin&ering. Reminding serving military Members of the Engineering Professional RecognStlon Award intended lo reward individuals and support the broader drive ta professionallse the workforce acfOSS Defgnce. {41 InstStutlon of Royal Enginoors Tru$tg9s' R¢port l¢ontinuedl For the year endèd 31 Dècernber 2025 Professional Dèvelopmant. Offeilng a 'mlx' of virtual and live events that allow Members to gtrengthen further individual professionol nelworks. whilst cDnneEling to a wlde diaspora. (21 Promoting Professlonal Registration at each level lo expand th8 number of Englneerfng Technlclan. Incorporated Engineer and Chartered Engineer regislr8nls. 131 Upholding Engineering Council standards through the enabling Work of the sustained Professional Registration Committee. Support. Mentoring Mgmber$ who pursue fellowshbp In recognillon of an excepllgnal commitment lo the Inslltulion, the Corps of Royal Engineers, and advancèment rif Ihfj art ond science of Military Engineering. 121 Reaching out furth&r Into The Staff Corps, Veteran, Army Reserve, and Overseas Land Forces engineer fraternities, to Pfomole the many beneflls of joinlng the Inslilulion. 131 MaSnlalnlng the slalus afforded by HIS Majè8ty'8 Revenue and Customs as a recognlsed and a¢¢redlled prgfe$sional body. Educatlon Educglional development Inlllalives lo include: Publlshlng Th8 Royal Engineers Joumal Iri-annually, Ihereln d18semlnallng flrsl.¢la$s artlcte8 inlendad lo wden perspectlv@s, celebrate innovatSon, Impart knowledge, and promote debate oppropri81g to the advancement cf Bald art and sdonce of Mllllary Engineering. Supportlng the Collation of the Corp5 Hi51orian's Annual Report lo Ihe Gorps established lo captur& malerlal, chronlc81 the Corps, conlrlbullc)ns lo national security, and record key acllvilles, which wlll eventually be recorded formally in the next volume of Corps History. PromolSng the annual flagshlp ￿0￿nt professlonal meellng between the Institution of Clvll Englneors and the Inglllullon of Royal Englneers. Investigating new opportunities to work collabgratively with other Inslilullons, profasslonal bodles and learned socièties. Rewarding Members for indlvidual academic and Military Engineering excellence through the sponsorship of appropriate prizes and awards lo Gelebrale and a¢knowledgo success. Championing both the Pasley Research Centre and James Forbes Exhibltlon Gallery resources within the Royal Engineers Museum, that provld8 access to a lop-notch Archive and Library resource made available to support ¢onlinuou8 ppr8onal development. In¢reasing further Royal Engineers Historical Society membership. Publicising the historic Military Engineering 'Designated Collection, which has been recognised as one of outstanding national Importance. GovgmanG& On a requirements basis, work together with the Engineering Council Privy Councll & Goveman¢e Panel and Privy Council Officè lo implement any changes tci the Royal Charter and 8ye-law8 approved by Trustees. Instltutlon of Royal EngIn￿r$ Trustees, Report Icontinuedl For thè year •nd8d 31 Decèmber 2025 INDEPENDENT AUDITORS Kreston R&8vas Audit LLP were retained as the Corps, auditors. STRUCTURE. GOVERNANCE AND MANAGEMENT ORGANISATION The CoLFncil delegates speGifiG aspects of the Inslilution's a¢livilie8 to four s18nding commrtt68s: Flnance and Assurance Committee IFACI. ProfeBslonal Reglstratlon Ctsmmitt&& IPRCI. Member Servlces Committee IMSC). Rliyal Engine8rs Historical Sociaty {REHSI Management Commltlao. The In$lttullon'$ Secret8rlal comprises a Chlef Executlve, Tfta$ur¢r, four other full-lime èmployees and one part-lirNe employee. TRUSTEES Th& TNslees who served durlng th• yaar are delalled on page 8. Appolntment of Trustees New Trusle&s are appointed Ex-officio on 888umplien ol speclfied appointment or nominated by Councll lor Members) and elecled al an Annual Goneral Meetln9 IAGMI in accordance with Ihg Royal Charter and Bye- 18WS. Councll M8mber8hlp OfficgfB. The President and Vlce Pmsidènls are 6lected for a period of up lo five years. Elgctgd Mgmbors, Elerted Members of Councll may Serve lor up lo five ygars. ExQfficlo Members. Ex-officio Members are Council Members ITrusleesl by virtue of appoinlm8nt. Such Members assume Trusteeship on appointmant and rellnquish Iresignl the same when leavin9 the appointment. Trustee Induction Trainlng. A Tru9tee Tr8ining Programme is in place., this has been augmented wllh onllne training. All Trustees of Royal Englneer Charltles, and all Trustees are encouraged lo attend training provided by on• of fv40 consultants. Provision 18 made for each Truslea to receive training within 6-months of appolntmenl and attend refresher training after 3-years' tenure. Ind8mnlty An order from the Charity Commission of England and Wales aulhorisino the Trustees lo provlde indemnity insurance for themselves out of the Charity funds was issued on 15 September 2001 and this has been continued. Instltution of Royal Engine&rs Trustses, Report lcontlnuedl For tho yoar endèd 31 Dgcember 2025 MEMBERSHIP The Institution of Royal Engineers con8i5ts of Fellows, Members. Apprentice Technician Members. Honorary Fellow5 and Honorary Members. and any other category the Council may wish lo er8ale. Fellows and Members comprise officers, warrant Dfficers, and lower ranks of the Regular and Reserve Arrlly element Df the Corps of Royal Engineers, serving or retired. Membership may also be off&red lo those serving, or who have served, in the Engineer Arm of the Land Forces of the Commonwealth, former Dominions. Colonies or Dependencles as Councll shall delermlne. Simllarly. mèmbershlp may be offered lo Givilians wilh appropriate backgrounds who support the OBJECT of Ihe Inslilulion as delermineé by Council. Honorary Member and onorary Fellow are offered as it appears in the Bye-laws. Honorary Associala Membership is no longer offergd., gxisling Honor4ry Associate Members continue as a legacy category. CONNECTED CHARITIES The Royal Engineers Museum CIO Foundation has begn regi$lered, with the approval cf the Charlty Commi$$ion of England and VVale$, as a separate Charlly under the prcsvlslons of tha Charitiès Act 2011. The Royal Engineers Museum CIO Foundation IChaTily Number 12110211 currently shares two of the same Trustees as the Inslltullon bul Is reported on sèparately. RISK STATEMENT The Rlsk Register was regularly reviewed throughout 2025 by the Chalr FAC, Chlèf Executive and Council. Twsle85 continue lo be satisfied that approprlale 5y31em8 are In place lo mltigale all the risks Idenliflgd, the principal ones remaining.. Buslne$8 plan not dollveroblo or able to dellvgr on agregd prlorltlès. Trusla8$ conlSnue to rnillgale the rlsk through a comblnallon of measures.. funding an endorsed priorilised programme wlth regular r•vlgw points, $g11ing a balanced c051ed programrne wllhlri Control Total. maintaining 8ufficlenl Unreslrlcled Reserve funds of al least one year's operating costs, alignlng wlth th8 Corps. Fln8n¢e & Inveslmenl Cornmittee (where appropriatel. retaining the Inslilution's membership of the Armed Force5 Charitie5 Growth & In¢ome Fund, annua51y reviewing Busines8 Contlnully Plans, and by receiving professional, independent inv•$lmenl man8gemgnl advice. Los• tho ablllty to reglster M•mb•r8 wlthln th• provlslon of the Llcence granted by the Englnegring Council. Although the probability of such an occurrence continues to be assessed as low, Trustees have onee agaln degionaled the rnainlenance of the Licence as a high priorS1y. Amelioration measures include developing further resilience within the Volunteer Peer Group, ¢onduGling training on a Irainlng n8eds analysis basls, and mrinltoring Internal and external pgr¢eplion, odapling a$ r¢quirgd, to deliver su81ained ifflprovemenl. Govemance structures become inappropriate or fall. Tru$lees Gontinue lo periodically revlew the Royal Charter and Bye-laws lo ensure these governance documenls remaln rel8vant and appropriate, regularly liaise with the Engineering Council Privy Council & GovemanGe Panel, and have established safeguard clauses to avoid Instltutlonal drift from core values. Key m51igallon measur•s have been retained within the Risk Register lo ensure 8ufficienl representation on the new RE Museum CIO Foundallon Governance Board lo alleviate any possibility of a diverg8nc8 away from the Instilulion, Corps and wider Sapper family values. Trustees have also en5uretJ there continues to be appropriate representation at Council and on all standing committees, revlèwed all outputs and aclivilies to ensure compliance wilh the Royal Charter, and ov¢is¢en the regular evaluation of requirements and standards lo ensure relevance. Instltutlon of Royal Englneers Reference and adminlstratlve details of the Charity, its Trustees and Advisers for the year ended 31 Dgcember 2025 Trustees The Councll of the Instltutlon of Royal Englneers was formed of tho followlny Indlvlduals: P￿sIdent Major G8neral N J Cavanagh CB 20f8 Re.elected December 2023 Vice Presidents Major G8n8ral D W Southall CBE BrlgadleT P T Quaile OBE Brigadier J D Wébster Colonel J L Prichard KVRM. 2020 2024 2023 2020 Re.elected AGM 2025 Elected al AGM 2024 Elected at AGM 2024 Re.elected AGM 2025 Member5 Ex OffKio Comd 8 Engr Bde Brigadi&r S J Carvel Completion of lenuro 2025 Brigodier J D Stuart June 2025 Colonèl S J Graham January 2024 Colonel A J Harris Novemb8r 2024 Colonel R B Hawkln$ M8E ADC November 2022 Colonel A J Cooper QVRM TD Completion of18nure 2D25 Colonel D Hall VR September 2025 W01 S W A Eardley. June 2023 Cemd 25 ICSI Engr Gp Dep Hd Plans NCGI and CRE IGeol Corps Colonel Dgpuly Corps CDIDnel Corps Sergeant Major Co-opted Major General C L Wilkes CB CBE Captain P W Brazier W02 D P Oldham 2024 2024 2025 June 2024 Completion of tenure 2025 October 2025 Chlef Executlvè Mr J D Acornley. 2019 Trfra6ur8r Malor (Reliredl I Sidebottom" 2013 NB ' Indlcales Members of FAC Charity Registered Number 249882 Instltutlon of ROYHI Engineers Reference and admlnSstratlve dgtalls of the Charlty, Its Trustees and Advisers Icontinuedl for the year anded 31 Doc&mb•r 2025 Prlnclpal Offlce Regimental Headquarters Royal Engineers Bromplon Barracks Chatham Kent ME4 4UG Independent Audltor Kreston Reeves Audit LLP Chartered Accounlanls Statutory Auditor 2nd floor Maritime Pla0& Quayside Chatham Maritime Chatham Kent ME4 4QZ Bankgrg Lloyds Bank plc Plccadilly Bran¢h PO Box 1000 London BX1 1LT Sollcltor8 Furlgy Page LLP 39 Sl Margargl's Street Canterbury Kent CT12TX Investment Manager Bl8ckRock Investment Managers Ltd 12 Throgmorton Avenue London EC2N 2DL Approved by the Trustees and slgned on behalf of the Trustees Executlve 14 April 2026 Institution of Royal Engln8ers Independgnt aud•toes r•port to th• Trustees of the Instltutlon of Royal Englneor¥ We have audited the fftnanclal st8tements of the Institution of Royal Enginèers (the 'charityl for the year ended 31 December 2025 which compnse the Slalemenl of financial activities. the Balanc& sheet, the Statement of cash llows and the related notes, Ineludlng a summary of significant accounting policies. The finan￿al reportlng framework that has been applled In Ih8Sr Preparation is appllcable law and Unitèd Klngdom Accounting Standards, Includlng Flnancial Reportlng Sland8rd 102 'The Financial Reportlng Standard applbcable in Ihe UK and Republlc of Ireland, Iunlled Klngdom Generally A￿epted Accounting PraGlicel. In our opinion the financlal stal•menl¥'. give a true and foir vi8w of the slate of the ¢harity's affalrs as at 31 Decembèr 2025 and ol Ils InGome and appllcallon of resources for the year then ended: have been properly prnpared In accordance with United lfjngdom Generally A￿apted Accounting Practice-, and have been prepared In accordance wilh th¢ requlremenls of Ihe Charbtl88 Act 2011. Bagli for oplnlon We conducted our audit In a¢¢ordaneè wllh International *andards on Audltlng IUKI IISAg UKII and appllcable law. Our responsibilities under those s18ndards ar8 further described In th8 Audllor'8 r8spc)nslbllllie$ for th8 audit of the financial Statements section of our report. We are independent of the Gh8rlly In accordance wllh Ihe 8th￿al requiremènts that are relevant lo our audit of the financial 6lalemenl$ in th• UnSled Klngdom, Including the Financial Reportlng Councll's Elhlcal Standard, and we h8ve fulfillecf our other elhlcal resptsnslbililies in accordancè wllh Iheso r&qulr2menls. We believe that the audit evidenc• w• hfjvo obtalned 18 sufficient and appropriate lo provide a ba9is for our oplnS0n, Concluslons rèlatlng to golng conc•rn In audlling the financial slalements, w• have concluded Ihal the Trustees, use ol lh• golng concern ba818 of •¢¢c*unling In the preparallon ol the finanGlal 91olemenls Is appropriate. Based on the work wo have perform•d, ￿ h8v• not Idenliffied any material uncertalnlles relallng to èvents or condlllons that, indlvidually or collectlvely, may ca51 significant doubt on the charity'$ abillty lo continue 88 a going concem for a period of at l•a81 ￿efve month$ from when the financial slalemenls arn authorlsed for 188Ue. Our responsibllrties and the règponslbllS11•8 of the Trustees wllh respect to going concem arg d•scrlbed in the ra￿vant sections ol this report. Oth•r Infom)atlon The other infornlalton comprl$a8 th& inform•tlon includ•d In the Annual report, oth•r than the flnonolal $latements and our Auditor's report ther80n. Our opinion on the financial slalemenl$ doe$ not cover the other Ifomiation and we do not expre58 any form of a88uranc• eonclusion Ihereon. Our r&sponsibllity is lo read the othèr Information and, in dolng so, consider whether the other informallon IB materlally Inconsisl8nt with the financial 8lalemonl or our knowledge obtained in the audll or otherwise appearg lo be materially mis51aled. If we idènllfy such material incon5191en¢les or apparent material ml8slalem•nts. we are requlred lo delermlne whether there 16 a mat•rial misslalemenl in the financial statements or a malgrial misstalemenl of the other information, If, based on the work we have performed, we conclude that ther• Is materlal misstatement of Ihls other Informatlon. we are requir•d to report the fact. We have nothlng to report in this regard. 10 Independent auditor's report to the Tru$tees of the Instltutlon of Royal Engineers Icontinuedl Matters on whlch we ar& r•qulred to rpport by exceptlon We have nothing to report in respect of the following matters where the Charllles (Accounts and Reports} Regulations 2008 requlres us to report lo you if. in our opinion- the information given In the Truslee's report Is ineonsistenl in any material respect with the finanGial stalem8nls', or • sufficient accounting records have not been kept.. or the finan¢ial statements are not in agreement with the accounting records and relum3', or we have not received all the informallon and explanations we require for our audit. Respectlve respon¥lbllltlgs of Trustèes and audltor As explained more fully In the Truslee5' responsibilities stat8m8nt, the Trustees are responsible for the preparation of financial slalemenls which give a true and falr view, and for such Internal control as the Truste8s determine 18 necessary lo enable the preparation ef the flnsncial statements Ihal are free from malerlal mlsslalemént, whèther dLbe to fraud or arror. In preparlng the flnancial slal8m8nts, the Trustees are responsible for assessing the charity's ability lo contlnue as a going ¢oncern, di$¢loslng, as applicable, mallers related to going concern and using the going concern basis of accounllng unless the Trustees eilh6r Intend lo liquidate the charity or to Gease operations, or have no reali8tic allemalive bul lo do so. Audltor's r88pon#lbllltlo8 for the audlt of the flnanclal stal¢m8nts W8 have bean appointed as auditor uncler secllon 144 of the Chartlles Act 2011 and repert in accordanc8 wlth the Act and relevant regulation$ made or havlng effect thereunder. Our objectives are lo obtain reasonable a8surance about wh&lh8r the financlal slalemenl8 as a whole ar¢ f￿$ from matèrial mlsslatement, whether due lo fraud or error, and to Issue on Auditor's report that includes our opinlon. Reosonablo assurance is a hlgh level of assurance but is not a guarantee that an audit conducted in accordance with ISA'S IUKI w511 a￿ayS delècl a material misslalgmenl when11 exists. Mlsslalemenls can arise from fraud or error and are considered materlal if, Indlvldually or in the aggregate. they could r•as¢nably be expected to InfluenGe eGonomlc d•clslons of users taken on the basis of Iheso financial slalemenl8. Irregularilie8, inGludlng fraud, are Instances of nDn-complian¢g with laws and regulallons. We deslgn proc&dur8s in Ilne wllh our responsibilities. oulllned above, lo delecl malerlal mlsslalemenl$ in respect of irregularllies, Includlng fraud. The extent lo which our procedures are capable of delecling irregularities. Includlng fraud is delalled below.. Capability of the audlt in detècllng Irrggularilies, including fraud Bas8d on our underslandlng of the charity and the seGlor as a whole, and through dlscussitrn with the Trustees and other management la3 required by audillng standards), we identified that the principol risks of non- compllance wllh laws and regulations related lo htrallh and 8afely, anli-bribery and employment law. We considered the exlenl lo which non-compliance mlght have a material effact on the financial stalernents. We also considered those laws and regulations that have a direct impaGt on the preparallon of the financial slalemenls su¢h as the Ch8rilies SORP IFRS 1021 Second Edition (released October 20191, and other relevant charlty leglslalion. We communicated identified laws and ￿gUlationS throughLiuI our team and remained alert to any indications of non-compliance throughout the audll. We evaluated Truste&s' and monagement's incentives and opportunities for fraudulent manipulation of the financial slalemenls (includlng the risk of override of Controls) and determined that the principal N5k5 related lo posting inapprDpriate journal entries lo increase revenue or reduce expenditure. and management bias in accounting estimates. Audit procedures p8rformed by the engagement learn included.. Discussions with management and assessment of known or suspeGled instances of non-compliance wth laws and regulations (including health and safelyl and fraud., and As$e$smenl of identrfipd fraud risk factc*r5,' an Review of cash expenditure to confirm no evidence of personal benefit., and Indepgndent auditor'5 report to the Trustpo$ of tho Institution of Royal Engineers Icontinuod) Challenging a$sumptions and judgements made by management in ils significant accounting e¥tlmale8', and Performing analytical procedures to Identify any unusual or unexpected rtrl8tionship$, including related Party transactions, that may indicate ri8kg of material misslalemenl due lo fraud.. and Confirmation of related parties with management, and review of transactions throughout the perlod lo id8nlify any previously undisclosed Iransacllons wllh related parties outside the normal course of buslness., and Performing analyllcal procedures with automated data analytic$ tools to Identify any unusual or unexpected relationships, includlng related party transactions, that may indicate risks of malerlal rni$slalement due lo fraud-, and Fteading minules of meetings of those charged with goveinance,. and Physlcal Inspection of tangible assets susceptible lo fr8ULI or irregularity., and Review of significant and unusual transaclions., and Id8nlifying and testing journal ènlrles, In partlcular any manual entries made at the ytrar-end tor financial statement preparation. Because of the inherent limitations of an audit. there Is a rlsk that we will not detect all irregularities, including those leadlng lo a malerlal mlsslalemenl In the financial slalemenls or non-compliance with regulation. Thls risk increases the more that compli8nc8 with a law or regulation is removed from the events and transaction reflected in the financial slalemènls, as we wlll be less likely lo become aware of instances of non-compliance. The risk is also greater regarding Irregularllies occurring due to fraud rather than efror, as fraud involves intentional concealment. forgery. collusion, oml$slon or mi$r•pres8nlalion. As part of an audit in acGofdan¢e with ISAS IUKI. we exefc18e prof8sslonalludgement and malnlain profesglDnal scèplicism throughout the audS1. We a15Ql'. Identlfy and assess the risk$ of material misslalemtrnl of the financlal stalemenls, whether due to fraud or error, design and perform audlt procedurès responslve lo those risks, and obtain aud51 evldence that Is sufficient and oppropriBt8 lo provide a ba818 lor our opSnlon. The risk of not detecting a matEflal mlsslalem8nt resulting from fraud Is hlgher than for one resulting from error, as fraud may involve collusion, forgery, inlenllon81 omlsslon5, mi5represenlalions, or the override of internal control. Obtsin an underslandlng of internal conliols r¢l•vanl to the audit in ordèr lo dèslgn audlt procedures Ihol ar8 approprlate In the circumstances. bul not for the purpose of expressing an oplnlon of the effectivenèss of thè charity's Internal control. Evaluate the approprialgness of accounting policles used and the reasonablen&$$ of accounllng estirnates and related diselosures made by the Trustees. Concludè on Ihè appropriateness of the Trustees, use of the going concern basis of accountlng and, based on the audit evidence obtained, whether a material uncertalnty exlsls related lo events or conditions that may east signiflcanl doubl on the charity's ability lo conllnue as a golng concern. If we conclude that g material uncertainly exists. we are requlred lo draw attention in my Auditor's report lo the related dSsclosures in the financial ststements or, if such dis¢losur8s are Inadequate. lo modlfy our opinion. Our conclusions are based on the audlt evldence oblalned up lo the dale of my Auditor'8 report. However. future events Dr cc>nditions moy cause the charity lo cease to continue as a going concern. Evaluate the overall presentation. structure and content of the financial slalements, Includlng the disclosures, and whether the financlal statements represent the underlying Iravi8aclions gnd frvgnts Irb a manner that achieves fair presentation. We communlcale ￿th those charged with govemance regarding, among other matters. the planned Scope and liming of the audit and significant audit flndings, including any significant deficiencies in internal ¢onlrol that we identify during our audit. 12 Indep&ndent auditorfs report to the Trustees of the Institutlon of Royal Engineers (continued) Usg ofour roport Thls report is made Sole￿ to the charfly's Trustees. as a body. In accordance wlth Part 4 of the Charitles (Account5 and Reports) Regulations 2008. Our audit work has been undertaken so that we might slate lo the charity's Trustees those mallers we are rwuir8d lo stale to Ihérn in an Auditor's r8port and for no olh8r purpose To the fullest extent permilled by law, we do not accept or assume re5ponsibilily lo anyone other than the charlty and Ils Trustees, as a body. for tsur audlt work, for this report, or for the oplnions we have forme(S. Samantha Rouse FCCA DChA for and on behalf of Kr691on Reeves Audll LLP Statulory Audllor 2nd Floor Maritime Place auayside Chatham Marlllme Chalh8m Kent ME4 4QZ Date.. 15 April 2026 Kr¢Jton Reeves Audll LLP ale ellglblo to acl a8 audllors In hrmj of 8Kllon 1212 of the Compani•J Act 20&8 13 Institution of Royal Englneers Statement of financial activities for the year ended 31 Decgmber 2025 Unrestrlctsd Restrlcted funds funds 2025 2025 Total funds 2025 Total funds 2J24 Note Income and endowments from: Donations and Legacies Other Trading Activities Investments Charitable Activities 663,875 4,155 44,974 8,622 4,000 567,875 4,165 44,974 8,622 543.619 12,215 41,656 8.007 15116 Total Income 621,626 626,626 605,497 Expondlture on: Raising Funds Charitable Activiti88 1,009 672,766 1,009 2,710 S76,766 563,604 4,000 Total expendltur6 573 775 677 776 56e 314 Net expendlture before revaluatlons 47.8S1 47,851 39,183 Net gain8 1 {losses} on revaluations of investment assets 22 88,307 86,307 42,615 Net movement In fund$ fortho year 134,158 134,168 81,798 Total funds al 1 January 2025 1,095,752 572,933 1,668.685 1,586,887 Total funds at 31 DeG¢mber 2025 1,229,910 572 933 1802 843 1668 685 The Slalement of flnanclal actlvllSes includes all gains and losses In the year. All aclivili&s relate to continuin9 operations. The note8 on pagès 17 10 29 form part of these financial slalemenls. 14 Institution of Royal Enginaars Balanc• sheet for tha yèar endèd 3108c8rnbèr 2025 Charity Numbèr.. 2498B2 2025 2024 Not& Fixo(l assgts Tangible assets 21 584,867 S87,037 Inve¥lment8 22 1,123.336 1.037,029 1,708.203 1,624,066 Currnnt Ass•ts 08blors 23 29,414 42,527 Cash at bank 89,652 29,819 118,986 72,14e Crèdltorts: #mounts falling dua ￿thIn one year 24 124,3261 127,5271 Net curr•nt assots 94,840 44,619 Net As$gts 1802 843 1668.685 CharSty Fund¥ Re$trld¢d fund$ 25 672.933 572.933 Unr$8lrlcted funds 25 1,229.910 1,095.752 Total fund$ 1802 843 1.6e8.685 The finandal slalem&nts W8Te appTov•d by tha Trust•os on 14 April 2026 and slgned thelr behalf. by.. Brlgadlgr J D Wgbstor, Tru$tg9 Colonel G S ¢he￿Man ADC, Trustee The notes on pages 17 to 29 form part of these finanThal slalements. 15 Institution of Royal Engineers statement of Cash Flows for the year ended 31 Dec8mbar 2025 Note 2025 2024 Net cash used In operatlng actlvltl&s 29 14,959 37,164 Cash flows from Investlng actlvltles Intèrest and dlvidends Purchase of langible fixed assets 44,974 41,656 Cash provlded by Investlng aGtlvltle$ 41,856 Ca$h used in financing activities Increase Idecreasel in cash and cash equivalents in the year 4,492 Cash and cash equivalents al th8 beginnlng of the year 29,819 25,127 Total cash and cash •qulval•nt8 at th• •nd of th• yèar 89,652 29,e19 Analys1$ of changes In net debt At1Jan 2025 Cashflows At 31 Doc 2026 Cash and cash equlvalents Cash 29,619 59,933 89,552 16 InstStutlon of Royal Engineèrs Notes to the financial statements forthe year ended 31 Decemb¢r2026 G&neral admTnistrative information Institution of Royal Engineers is an unincorporated charity in England & Wales wfth the reglstralion numb8r 249882. The address of th& registered office is Headquarters Royal Engineers, Bromplon Barracks, Chalham, Kent. ME4 4UG. The Charity's principal objective5 Continued lo be.. To promote and advance the science of military 8ngine8ring and lo promote military efficiency, particularly the military efficiency of the Corps of Royal Engineer3 2 Accounllng pollcSes 2.1 Basis of preparatlon of flnanclal gtatements The financial slalements have been prepared In accordance with thè Charf(ies SORP IFRS 1021 Accounting and Reporting by Charities.. Slalemenl of Recommended Practice applicable to charitie3 preparing their aGGounls In accordance wlth the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102} leffeclive 1 January 20191 and tha Chari1193 Act 2011. In5111utlon ol Royal Engineers meets the definition of a public ben81il enlily under FRS 102. Assets and Ilabilllles arè inillally recognised al historical cost or transaction value unless otherwis& slalgd in Ihg relevant accounting policy nolel81. Tha financl81 slalemenls are pre¥enled in UK slerllng, whlch Is the Charity's funcllonal currency, and rounded lo the nearest pound. 2.2 Prèp#r#tlon of th8 accounts on a golng concern basls The Trustees assess whether the use of going concarn is approprial&, i.e., whether there are any malerigl uncgrtainlies related lo events or conditions that may cast significant doubl on the ability of the Charlly lo eonllnue as a going concern. Tho Tfu$l8es mgk8 this assessment in respect of a perlod of al least one year from the dale of aulhorisalion for issue of the financial slalemenls and have concluded that the Charity has adequate resources to conllnue in operallonal exlslence for the foreseeable futur& and ther8 are no material uncertainties about Ihg Charills ability lo conlinug as a going concern, thu8 they continue to adopt Ihe going GonGern basis of occounling in preparing the rinancial slalemenls. 2.3 Fund accounting General unrostricled funds represent unrestricted assets which are expendable al the discretion of the Trustees in the furtherance of the objects of th8 charity. Such funds may be held in order to finance both working capital and eapital movement De8ign8led funds are amounts whiGh have been put aside out of unre5tr¢cled funds at the discretion of the Trustees. RestrKled funds repTe5enl grants, donations and legacies received which are allocated by the donor for specific purposes. Investment income gains and losses are allocated to the appTopriate fund. 17 Institution of Royal Engineèrs Notes to the financial statements for the year ended 31 DeGember 2025 2.4 Income All Ir￿ome is recoyni8ed oncè the charily has entitlement to the income. il is probable that the Income will be received and the amount of income receivable Gan be measured reliably. 2.5 Expgndlture Lrabililies are recognised as expenditure as soon as there Is an obllgatlon lo commilling the charity lo the expendllure. All expenditure is accounted for on an accruals basis Grants payable are payments mgde lo third parties the furtherance cf the charitable objectives of the Trust and are always aulhorlsed by lrnslees. The costs of raising fynds ¢on3i¥t of inve8lment managemenl and certain legal fees. Cost of ch8ritabla aciivf(ies includes grants made and the apportionment of support costs shown in note 9. Overhead and support costs that cannot be allribul8d dirètlly lo a charf(able a¢tSvlty have been allocated on a percentage basis of Ilme, spaGg and cost against the activity. 2.6 Herltage assety Th8 Inslilulion owns a large number of hlstorlc mllk8ry artefacls that are displayed in the Royal Engineers Mu88um and Libfary. These include medals, drawings, manuscripts, 3-dimensional artefacls and published works that are up to 300 year$ old. These as8ets are not capltallsed due to th9 significant costs involved in valuSng them. The Inslrtulion will only acquiro heritage assets that gre relev8nt lo the Mu8eum collectlon, whllsl disposals ar8 raslriclèd to gSfts to similar milltary museums. 2.7 Tanglbl& flxed assets and depreclatlon Assets cosllng more than £1.000 are capllalised and are valued al historic cost. Depreciglion is charged on assets uslng a stralghl- Ilne basis ovar Ih8ir @slimated life on the following basl8'. Computers General property 20¢kn straight line 10'h straight line 2.8 Investments Investments held as flxed assets are included in the accounts at valuation based on their bid price al the balance sheet dale. The statemgnl of financial activities includes the nel gains and losses arising on revaluation and disposals throughout the yeaf. 2.9 Debtor5 Trade and other dabttrrs are recognised at the settlement amount. Prepaymenls are valued al the amount prepaid. 18 In$titution of Royal En9lneers Notes to the finan¢is1 statements for the year ended 31 December 2025 2.10 Cash at bank and in hand Cash at bank in hand includes c88h 8nd short term highly IKiuid investments wlth a short maturity ol three months or less Iiom the dat* of acquisition or opening ol the deposi¢ or similar ccoktnl. 2.11 Llabllltl•s and prov181ons Llabllllles ar• r•cogTri88d when there is an obligation at th• 8algnc* She8t date as 8 r88uIt Df past event. it is probsble that 8 transfer of econornic ben8fit will be ￿qUi￿ d In settlement, and the arnount ol the settlement be e51itRaled reliably. Li8bililie$ ￿cOgnised at the amount that the ch8rily anlicipales il will pay to settle the debt or Ihe amounl It has r?¢eived a8 advanced payments for the goDds or s¢rvic¢s il niu8t provide, Provisions are measured at the bèst e8tim8t8 ol the amounts requiréd t¢ Jgtt10 Ihg obligation. Where the eflecl of th& lime value ol rnDney maiorial. the provision is based on the pr6s&nt v8lu8 of Iho8e Brnounts, dhscounled al thg pre-tsx discount ral8 th8t reflects the risks 8pecific to the Ilablllty. The unwlnéing ol the di$￿Vnt i¥ recogThised wilhln Int8r&51 pay&bl8 sirnilar charg¢$. 2.12 Fln¥nclal Instrum•nt6 The charity only has finanei81 assets ond fin•neig1 liabllilie¥ DI 8 kind that quallfy as baslc flnanclal inslrum¢nl8. Baslc financial Instruments are Inllially f•ecJoni$•d 81 Iran¥action value and subgequantly m•o$uod at their 8ettlement value. 2.13 Donated oervlcgs and lacllltl•8 Donated 6eNlces, 8ra Included In income 8t a valuation whithls an estlmal8 ol the lInan￿al cost borne by th¢ donorwhere 8uch a cost16 quantlfiable and measurobl•. Th1¥ amounlls matched by donated txpaThdiluro. 2.14 Pènolon The charity operates a dollned contribution penslon seheme and th* pon$ion charge reprosenlB the amount$ payable by the charlty to the lund In ￿SPect ol th• yo8r. 2.16 Tender polley TruBlee8 llltrodu￿rJ a tendfrr pollcy that covors expendilur8'. a. 8ehveen £2,SOO and £S,OOD b. 88lw8en £5,DOD and £10.ODO c. Over £10,000 2.16 Taxatlon In¥litution of Royal EngiDeers is a registered oharlty and aceordingly no provision 1$ eon$idered necessary for taxation. 2.17 CrltEcal ac¢ountlng estlmates and areas of ludg•m•nt Estimates and judgtsm•ntS 8re continually 8valu8ted and are based on hlstorical eXperfen￿ and other factors, includin9 expe¢lations of future event5 that ale believed lo be rea¥gnable under the circutnslanc88. Th¢ Charily does not currently have any signifieafit aecounting e$tirnotes or areas ol judgement. 19 In$tltutlon ol Royal Englneers Notès to the flnanclal statements for thp year endèd 31 December 202S Unrestrl¢t¥d Restrlcted Total Total lund$ 2025 funds 2025 nds 2025 funds 2024 3 Donations and Legaclas Subseriptions Grants Règistration fees DonatiQn8 Legacies Donated laclllties and 8t#ff costs (Note 4 (Note Sl 410,481 410,481 393,137 4,000 3,500 79,390 77,919 368 1,273 soo 4,000 79,390 358 soo 87 790 4 000 $67,875 543,619 563 875 4 Sub•crlptlon8 Regular oificers Oth8r member8 Sèrving soldl&rs Members ol tho Reserve Tax r8lund Fellowship Eng Te¢h IEng CEng 151,369 101,660 84.743 13,629 27,136 9,650 36,342 3.433 2.519 151,389 145.489 101,660 99.108 64,743 60,505 13,629 11,193 27,136 24,921 9.650 9,600 36,342 33,045 3,433 6,943 2,519 2,333 410481 410 481 393,137 Support Costs Audit Insurance Adminislrallon Depreclallon Post and t•l8phone Stsff c081$ 1.871 305 1,213 1,S70 1.600 69,171 1.571 306 1.213 1.s70 1,500 69,171 1,341 203 3,900 781 1.995 67.008 335 151 336 151 317 911 5 Grants oiricer Cadet prize fund 20 In¥tStutlon of Royal Engineers Note8 to th8 ftnancl81 statsmènt8 for th8 year ended 31 December 2025 Unre8trlct8d Restrtcted fLtnrf$ nd$ 2025 Total fund$ 2025 Total lunds 2024 2025 6 Ponated $ervir¢s and faGilitl95 Donated 8laff Ilm onaled lacllil￿s 60,739 12,407 60,739 12,407 55,408 12,382 67,790 7 Tradlng A¢tlvttlg8 In¢ome Publicallon sale8 12.215 Expenditure Corps Hlstory 1,009 1,009 2.710 All and exp•ndilui8 on tradlng aclivllies was unrestricted in 2025 ond 2024. 8 InvMtm¢nt Incom• Dlvld2nd¥ Dlvldend$- Memorlol Fur Bank Inlew81 42,796 1,S28 B53 42,795 1,32e 63 40,121 1,243 292 I Inv•*1m￿l In¢omo in 2025 2024 was unreslrlcted. 21 In8Utytlon of Royal Enulneers Notes to the financial $tatements for the year ended 31 De¢ember 2025 9 Analysis of Expenditur8 by &ctiviti85 Darect C08ts Support C08ts Total fund8 To181 funds 2025 2025 2024 1025 Sub5CliPtions Publicstions Maintaln Memoria15 Profe851Dn81 Effecliven885 Grant making (Note 41 (Note 101 INote 111 (Note 121 (Nole 131 INole 141 (Not8 151 (Note 161 (Nole 171 (Note 181 75,330 63,193 5,289 4,339 9,068 39,Q29 822 4,814 75,330 138,405 5.289 13,807 97,285 42.308 2,505 5,454 11,866 111,322 75,227 119.3Q2 5.454 18,913 S5,767 42,366 1.877 5,380 20,885 110,643 75,212 9,468 88,217 3.279 1,743 840 11.856 3B,086 Napier House RE Histori￿1 Society Awards Professional Reglstration Donatsd slaff & f8cilitl8S 73,236 73,146 348,066 228,700 676,766 563,604 In 2025 £572.766 was unre8trfct8d12024.' £583,e041 and £4,000 was restricted12024.' £nS11. 10 Publlcatlon Dlrect Costs Dlslfibulion ¢ost& Publlcalion8 26,17S 28,371 29,929 56 300 Support COBt8 Audit Administration Insurance Post and telephont Computèr support costs Staff costs Depreci8tloTh 1,671 593 30S 663 4,SSS 66,D06 600 1,341 3,29e 203 749 3,928 S2,88S 600 63,193 63,002 139414 119302 11 Malntsln Memorlalg Support costs 271 41 37 327 4.613 231 462 50 217 4,494 Administration Post and tel8phon8 Insurance Staff 5,Z89 5.454 22 Institutlon of Royal EngSneers Not8S to the financlal 5tatem8nts for the year ended 31 December 2025 Total funds 2025 Total funds 2024 12 Profe$$ional Effectiveness Dlrect costs JPMS Fellow Event Focusses Symposium Sponsorgd Symposia Olh8r in Year Opportunitiès 6,714 603 750 1,001 500 8,165 4,955 1,185 400 14,705 Support Costs Insurance Post and telephone Wolfe Soclely Subscrlpllon Staff costs 131 38 87 50 4.065 4.208 4,339 18,913 13 Grant Maklng Dlr¢¢t ¢o$t$ RE Museum fund Comms Hub Grant RE Awards Dinner 85,817 20,000 64,524 20,000 Support cost8 Insuranee Post and telephone Staff costs 262 112 174 150 8,519 8,843 14 Dlgltlsatlon Dlrect cost8 IT costs 3,324 Support costs Audit Insuranc8 Post and telephon8 Staff costs 271 131 38 231 87 50 39.042 23 Institution of Royal Englneers Notes to the financial statements for the year ended 31 December 2025 Totil funds 2025 Total fund5 2024 15 Napler Hou$È Income from ¢h•ritsblt activitigs Renlal In¢ome Dirocl costs Maintenan¢¢ 772 Support cost5 Audit Adminl¥trallon Insurance Post and lelephon8 staff costs Dopre¢lallon 271 41 327 38 146 231 462 218 144 822 1.877 16 RE H15torlcal Socloty In¢om4b from cttarltabl• •etlvltl•8 Membership Dlre¢t ¢o•ts PublS¢atlons 840 862 SupportCo•ts Audll Adminlstm15 In5ur&nce Post and telephon9 Slafl ¢08l$ 163 10 139 22 43 150 112 4.518 5.380 17 Awards Medal Prize$ 3,539 11,162 9.723 18 Prof8&81on•l Regl$tr&tltsn Dlrect Gosts Reglstralbn & M8thelkn9 37.447 Support costs Audit Admlnisliatlon In$uran¢e Post and telephone Staff costs 1,300 794 327 1.312 1,110 3.221 217 1,747 68.901 73.196 111 322 110,643 24 Instltullon of Royal Englneers Notes to the ￿nancIal stat8ments for the yearended 31 Decomber 2025 Total Funds 2025 Total Funds 2024 19 Met inGomelgxpendlture Thi5 IS $taled after charging.. Depreciation ol tangibl& fixed 8S88ts'. . 0¥￿ed by ihe charity AudlloVB remuneratSon 2.170 2,170 4.554 Durlng Ihe yeaf, no Tru$lee5 received ￿nY rernunerallDn12024.' £NILI. During Iho year, no Trustees received any benefits in klnd12024'. £NILI. Durlrtg Ihe y8ar. no Tru8iee$ ie¢elved any relmbursement of expen$e$12024.' ENILI. 20 Staff ¢¥$t¥ Slaff costs weré as follows.. Wage5 and salar￿S Nallon81 Insurance PvnslDn c051 217,769 18,809 20,772 211.145 15,725 19,981 246.851 Donatsd Btaff tlm? The 8V8iage numbgr ol p?r¥on8 9mplo￿d by the Ch¥iity durlng Ihe yeor was a8 follm.. No. No. Publlcslions Management ond at1mlnl&lr811on ol the charlty io 12 13 16 Tho overag¢ h¢ad¢ount expre$$8d as lull.lime equlvalents was.. No. Publications Managemenl and admlThl$lrallon ol Ih? charity Th8 Secretary occupl8s Ngpler Houso oj part ef hlg condlliDn$ of ernploymenl. Th8 p8n8ion cosl repieseThts amount$ payable 19 th¢ Corpj ol Royal Engir￿8[8 P8n8ion Fund, a defined conlribulion s¢heme, The 10181 employmenl beneftts Includlng employer pen8lon contrtbulSon8 of th8 k8y man8g8menl personn81 were £80,38812024.. £75,5761. Tho number of emplDyee5 whose b8nefils18xcluding empksyer pension c05tsl exceeded £EO,000 was". 2Q25 2024 In th8 band £60,001 - t70,000 25 Instltutlon of Royal Engin&ors Notas to tha financial statsmonts forthe yèar endèd 310e¢ember 2025 21 Tanglblè flxgd as$ots General, IT REstrlctsd and Office equlpment Artefacts Total Cost Al l January 2025 18.700 572,933 591,633 Al 31 December 2025 572 933 691633 Dgpro¢latlon Al 1 January 2025 Charge for the year 14,5961 12,1701 14,5961 12,1701 Al 31 December 2025 Net book value At 31 December 2025 672 933 584 867 At 31 December 2024 572 933 587 037 22 Flxed asset Investments General MomorlalB Fund Fund Total Market value Al 1 January 2025 Revaluations 1,OOS.865 83,714 31,164 1,037,029 2,693 86,307 At 31 December 2025 1089 679 33 757 1123 336 Hlstorlcal co$t 452 161 465,972 Inv8stm8nts at mark•t valuè comprlse: 2025 2024 Listed investments 1 123 336 1,037.029 All the fixed a88el inve8lment8 are held in the UK. Materfal Invèstments All invested funds were held in the Amied Forces Charities Growlh & In¢ome Fund, managed by Black Rock Investment Managers Limited. 26 Inst5tutlon of Royal Engln•¢rs Notès to thé fEnanelal statèmènts for thè yèar ènded 31 Dèeèmbèr 2025 23 Debtors 2025 2024 JPA Subscrlplions BlackRock Other Debtors 18,324 11.030 60 17.743 10.341 24 Credltors: Amounts falling duo wlthln one year 2025 2C124 Other creditors 17,091 20,500 Accruals 8nd defèrrèd incom• 7,235 7,027 24.328 27,527 26 Statement of funds Current Year Brought Forward Incomo Expondlturo Transfars Inlout Gain61 ILo$$&$l Carriod FoTh¥ord Deslgnat&d fund$ Memorials Fund Profe$$ional R¢gi$lrallon RE Histoiical So¢loly 190,8871 268,756 125,6331 1,328 121,684 6,022 120,725 2,593 33,767 279,118 126,0651 1111,3221 16,4541 162 236 128 032 116 776 120 726 286 810 Gènèral funds General fund 943.516 493,694 1466.9991 1120,T2S1 83,714 943,100 Total Unreslficted funds 1 095 762 621 626 673 775 1229910 Restrlctsd funds In$tltution Artelacts Offl¢er Cadet prize fund 572,933 572,933 4,000 14,0001 Total of fvnd8 1668 685 625 628 577 775 1 802 843 Prior Year Brought Forward Income Expenditure Tranyfers inloul Galnsl (Losses) Carrled Forward Designated funds Memorials Fund Professional Registration RE Historlcal Socièty 181,2431 185,963 124,0411 1.243 120,240 4,407 112.1881 137.4471 15.9991 1,281 190.887) 268,756 125,633 125,890 55.e14 1,281 152,236 General fvnds General fund 933.275 479,607 1510,7001 41,334 943,516 Total Unrestricted funds 1,013,954 605,497 566,314 1,095.752 Restricted funds Institution Artefacls 572,933 572,933 Total of lunds 1.586.887 605,497 566.314 42,615 1.668 685 27 In5tttutlon ?f Royol EnglfiBers Noies to tho financial statements for tho year endod 31 Dèc8mbor 2025 26 Analysis of not as891s boiwo8n funds CurrantY&ar Unmstrtctod Restri¢t•d fund5 fvnds 2Q25 202$ Total funds 2020 T8ngible fLKed 8sse18 Fixed asset invesimeni$ Current assets Creditors due ￿thIn on8 year 11,934 1,123,336 118,966 124,3261 572,933 584,867 1,123,336 11B,9Sa 124,3261 1 229910 572 933 1802 843 PrlorY8ar Unre8t¥icled Restriclad funds fundo 2024 2024 Total funds 2024 Tangibl? fixed 8ssel8 Fixed asset investments Curr8rst a8sel$ Creditors duo vAlhln one year 14,104 1,037,029 72,146 127,5271 872,933 587.037 1.037,029 72,146 127,S271 1 09$ 752 $72,933 1668,e68 27 Pènsltsrh £ommltm$nt¥ The charity operates 8 denned conlrlbullons pen8lon scheme. The a388ls of the Scheme are hèld $eparai&ly frDm Iho&e of lh& chBrlly In an Independenlly administered fund. The pension CDSI charge represents contrfbullDns payable by th• charlty lo Ihe fuThJ and amounted lo £20,772 12024., £19,981). 29 R•l•t¢d ptyrty tMn¥a¢tlon• BrlgAdtorJ•m•8 W8b$i•r. Calonol Guy Sluart Cheesman ADC, Colonol ￿a￿aIr Jame8 Coop•rQVRM TD, Brlgadlor Simon John C8rv81 &nd Major Genorol Oavid W Soulhall CBE, Trnsièes of the Insiilulion ol Royal ngine8rs are a180 Trusiees of the Roy81 In9ineer8 C&nlrBI Chari18bl6 Tru&1 IRECCTI lor vthlth Ir8llaBcllon4 h&ve18kgo plBce during Ihe yeqr. Durfng the yoar RECCT collecled 5ubEcr1p￿0n Income M behalf of Iht InsliluUon ol Royal Englneers tolalllng £459,47012024'. £443.0791, ond 91ft ald olE37.10912024.' £16,983) vthlch was Iran8ferred during the yèar. A fijrther £2,46512024.. £2761 of Other don81ions and sundry eharo8$ were also Iransferred. As of 31 Dec8mb8r 2025 E60 was ow8d lo Inst RE In resperl ol book sales12024.. £nlll Durlng the year the In8lllullon of Royal Enginaers also relmbyr8ed £85,36112024.. £80.1071 lo RECCT for rech3rge¥ fElaling ID yglaries and pgnsion8. po8lag8, and olher admln co&ts. A8 of 31 Oec8mber 2024 b¥lan¢e of£Nil wa5 owed lo RECCT12024.. £231. The Royal Engineers Mu5Burn is a connected charity ID the Inslilution of Royal Englneers and 8hare5 1 $ame ¢harter and Tru$lees. During the year the In51itulion of Roygl Engineers paid The Royal Engineers Museum grants lolalllng £65,81712024.' 71,8041 and Sundry re¢harge$ of £ryl12024.. £831. AS of 31 De￿rnber 2024 no balancB owed lo The Royal Englneers Museum12024.. £nlll. The Royal Engineers Museum r8imbur88d £428,73912024.. £477,262) lo the Inslilullon of Royal Engineers laling 1¢ salarie5 and pensions charge5. A further £125 was paid to Inst RE in raspect of book sale312024.. £nlll. As of 31 December 2025 no balance wa$ owed by The Royal Engineer5 Mv5eum 12024.. £nill. Brigadier JÈm8s WÈbsier and Colonel Gul Stu￿rf CheBsrnan ADC, Trustee5 of the In5Ulullon of Royal Engineers are also Trustees ol the Roy81 Englneer8 Hèadquartor MÈSS IRE HQ Mé&sl lorwhich trells8cl￿8 have tsken place duriTh9 the year, The Inslilulion of Royal Englneers collecled subscdp15on incorne on behalf of thè RE HQ MESS lolalling £5012024.. É251 which Iransferred Ihp year. As Df 31 De￿rnber 2025 no balan￿ was owed lo RQ HQ Mess. Brigadier Jame$ Web$ler and CotP5 SM SpenceTWilliem Arnold Eardlpy, Truslegs of the Inslilulion of Roy81 Engineers are also Trustees of Ihe Royal Engineers Association IREAI forwhich Irans8tsbon$ hav? taken plaGe during the year. The Inslilulion of Roy81 Ewin&ers pai(J overdonallons of £NII lo the REA12024.. £2601 vthich were Iransferred during the year, A5 of 31 DecprnbBr 2025 no balance was owed lo the REA. The REA wds paid Sub5criplioDs due to the In51ilulion of Royql Engineers of £5312024.. £nill. which was transferred during the year. As of 31 DecÈmbpr2025 nD balance was DY￿d by the REA. 28 ## **Institution of Royal Engineers** **Notes to the financial statements for the year ended 31 December 2025** ## **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**
**funds**
**2025**
£
**134,158**
**2,170**
**{44,974)**
**(86,307)**
**13,113**
**(3,201)**
**14,959**|Total
funds
2024
£
81,798
1,381
(41,656)
(42,615)
(9,219)
(26,853)
**(37,164)**| |---|---| 29