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2023-12-31-accounts

Charity numbers: 258322 and SC041832

Trustees' report and financial statements For the year ended 31 December 2023

The Royal Engineers Association

Contents

Page
Trustees’ report 1 – 13
Reference and administrative details of the charity, its trustees, and advisers 14 – 15
Independent auditor's report 16 – 19
Statement of financial activities 20
Balance sheet 21
Statement of cash flows 22
Notes to the financial statements 23 - 36

The Royal Engineers Association Trustee’s Report For the year ending 31 December 2023

The Board of Trustees present their annual report and the audited financial statements for the year ended 31 December 2023. The financial statements have been prepared in accordance with the accounting policies set out at note 2 to the accounts and comply with the charity’s trust deed, the Charities Act 2011, and the Charities SORP FRS 102. Trustees consider that in preparing these financial statements they have considered all information that could reasonably be expected to be available (including levels of reserves held). Therefore, the going concern basis of accounting is deemed appropriate and there are no material uncertainties.

Constitution

The Royal Engineers Association (“the Association” or “REA”) is established under authority of a Deed of Declaration of Trust dated 19 November 1968 and Supplemental Deed dated 1 December 1974 as varied by a scheme of the Commissioners dated 11 August 1997 and supplemented by the Rules of the Royal Engineers Association 2009, hereafter referred to as ‘The Deed’.

Restrictions on Funds

The Deed describes two Funds, A and B, which are restricted for the benevolence respectively of commissioned and of warrant officer and other rank members and past members of the Corps of Royal Engineers, together with their dependants. Both the A and B Funds were reduced to zero in 2015 and will not be re-used unless a specific grant is made in support of commissioned officers or other rank members of the Corps. A further restricted fund, the Gabriel Fund, was established during 1997, following receipt of a legacy from the estate of the late Colonel R C Gabriel (see note 23 to the financial statements). The General Fund is not restricted. Another restricted fund, The Kitchener Fund, which was the subject to an administrative transfer on 31 December 2008, was accepted by the REA Trustees from The Institution of Royal Engineers at their meeting in May 2009 and is now administered through the REA Benevolence committee.

OBJECTS AND ACTIVITIES

Objects of the Association, as set out in the Deed, are:

To promote the efficiency of the Corps in all or any of the following ways:

(a) by fostering Esprit de Corps and a spirit of comradeship amongst serving and former members of the Corps.

(b) to provide financial and other assistance to serving and former members of the Corps, their spouses, widows, widowers, and dependants who are in need.

(c) to make grants to the Army Benevolent Fund the Soldiers Charity and to such other Charities as the Council think fit which further the objectives of the Association.

Volunteers

REA branches are autonomous and are organised democratically in accordance with the REA Rules 2018 by members who take on the stewardship and running of the branch voluntarily. The many hundreds of volunteers who act as branch officials encouraging, supporting, recruiting, and guiding their branches and members to ensure that the branches provide a national network that supports the entire Sapper family.

ACHIEVEMENTS AND PERFORMANCE

The charity sets out to ensure that grants are made in a speedy, efficient, and cost-effective way. This was achieved, and grants rose to £13,724 (£11,571 in 2022) for those in care homes and £90,540 for those living at home (£87,549 in 2022), from whom many letters of appreciation have been received. Special Christmas grants totalled £8,275 (2022: £8,855). The total number of benevolence cases considered in 2023 was 550, 4% more than the previous year with the total grants coming to £244,487 in 2023 compared to £211,445 in 2022.

The Kitchener Fund supported the education of 11 Sapper families with grants of £53,289.

The Gabriel Fund supported the career development of 2 veterans suffering from life changing illness or injury

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The Royal Engineers Association Trustee’s Report (continued) For the year ending 31 December 2023

with grants of £25,000 to enable one to begin pilot training with the Charity Wings for Warriors, with the other beneficiary due to complete training in 2024 and begin working as a commercial pilot.

Sappers Network

Sappers Network continues to provide a jobs board for those leaving the Corps, this service is works with employers to provide access to a wide range of employment opportunities in the UK and overseas, a review of Sappers Network operations will be carried out in 2024 to improve awareness of the network to service leavers.

Grants Considered 2018 to 2023

Year
Disabled & Illness
Old age
Widows
Unemployed
Miscellaneous
No grant made
Totals		 2023
66
25
22
133
100
204
550		 2022
110
6
43
115
91
88
453		 2021
80
4
41
119
94
62
400		 2020
145
13
38
119
106
87
508		 2019
116
22
45
76
210
120
589		 2018
166
41
63
128
124
31
553

Other Grants

As in previous years, a Unit and Branch Support Grant of £100,000 was allocated from Capital Reserves for the year 2023. This was to enhance Esprit de Corps – a specific objective of the REA - by providing the opportunity for Units and Branches to bid for support in funding projects or activities which had no – or incomplete – support from other resources.

The 2023 welfare grant was a success with 100% of the fund available being disbursed.

As a result of this changes were implemented for future CUBS Grant Applications, with a greater awareness being promoted to both Units and Branches through direct briefings, email and social media and support from REA HQ when needed. It has been decided to continue the welfare grant opportunities on an ongoing basis subject to annual reviews. Further changes are planned for 2024 with the fund re-designated as the Community Unit and Branch Support Grant (CUBS Grant) from the restricted McCabe fund.

Delivery – Benevolence

2

The Royal Engineers Association Trustee’s Report (continued) For the year ending 31 December 2023

2023 Benevolence Summary.

Benevolence in General 01 Jan – 31 Dec 2023

Serial Data 2023 2022 2021
1 Number of cases assessed 550 527 449
2 Number of cases declined 204 169 135
3 Number of cases assisted 346 358 314
4 Number of weekly grants in
care homes (£##):		 £13,724
(Yearly)		 11,571
(Yearly)		 22,036
(Yearly)
5 Number of weekly grants at
home (£##):		 £90,540
(Yearly)		 87,549
(Yearly)		 90,289
(Yearly)
Special Christmas Grants £8,275 £8,855 £9,305
6 Total granted (£): £244,487 £211,445 £228,644

Chart of demographic of personnel assisted by connection (Serving, Retired, Reserve, Spouse etc.)

----- Start of picture text -----
January 2023 to December 2023 TOTAL
Total
S E RVI NG S E RVING F A MILY VE T E RA N VE T E RA N F A MILY
237
53
26
8
----- End of picture text -----

3

The Royal Engineers Association Trustee’s Report (continued) For the year ending 31 December 2023

Chart of ages of personnel assisted.

----- Start of picture text -----
January 2023 to December 2023 TOTAL
Total
<20 20 - 29 30 - 39 40 - 49 50 - 59 60 - 69 70 - 79 80 - 89 90 - 100
68
66
50
38
36
28
26
11
1
----- End of picture text -----

Chart of reason for benevolence

----- Start of picture text -----
January 2023 to December 2023 Total
89
35
31 29
2 1 1 1 1 8 4 9 1 1 15 2 13 1 14 2 2 1 1 4 7 [20] 1 3 6 1 4 1 4 3 5 1
Total
BANKRUPTCY BUSINESS START UP CAREGIVER COST CAREHOME FEE CHILD CARE CLOTHING COMPUTER FOR WORK COUCIL TAX ARREARS DEBT DUAL CONTROL TO CAR ELECTRIC BIKE EPV ESSENTIAL FOOD FLIGHT FUEL COST FUNERAL COST GARAGE DOOR GARDENING GENERAL NEEDS GRANT GUITAR EQUIPMENT HEATING OIL HOME REMOVAL HOUSEHOLD GOODS HOUSING HOUSING ADAPTATION HOUSING REPAIRS KIDS BIKE AND STORAGE MEDICAL AIDE OT FEE RESPITE CARE RISER/RECLINER PROFILING BED SPONSERSHIP TRAINING TRANSPORT VISA WORK EQUIPEMENT
----- End of picture text -----

4

The Royal Engineers Association Trustee’s Report (continued) For the year ending 31 December 2023

Map of Cases

Chart -Cause of Benevolence Request – Health, Debt, Divorce etc.

----- Start of picture text -----
September 2023 to December 2023 TOTAL
Total
36
27
22
15 15
10 10
6 6
3 1 1 1 2
----- End of picture text -----

Chart Active Branch Member – Yes / No

----- Start of picture text -----
September 2023 to December 2023 TOTAL
Total
N Y (BLA NK )
136
19
----- End of picture text -----

Kitchener Fund: 11 dependants aided with this scheme total spent £53,289. Garbiel Fund: 1 person funded 2023 £25,000.

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The Royal Engineers Association Trustee’s Report (continued) For the year ending 31 December 2023

ABF The Soldiers’ Charity

The Trustees are most appreciative of the financial support provided by the ABF The Soldiers’ Charity towards the cost of welfare grants to serving and former members of the Corps and their dependants.

Delivery – Membership

Assistance

The Association acknowledges with gratitude the assistance provided by the caseworkers of SSAFA, TRBL and REA branches for their contribution to the benevolence system.

Fundraising activities

In 2020, it was considered we should review once more our approach to fund raising. This has been considered by the Finance Committee and a focus on areas such as Legacy and Donation and fund raising by branches, individual members, units, supporters and sponsors in support of the Association has been accepted to ensure that the Association maintains its long-term ability to provide benevolence and welfare services to the Sapper Family. From 2024 the Association will be actively involved in Fundraising activities to ensure the sustainability of our support to the Sapper Family.

REA Branch Accounts

In March 2004 Trustees were informed by their auditor that SORP 2000 required them to include the income, expenditure, assets and liabilities of those REA Branches that did not have separate legal status in their annual charity account, if material. Subsequent legal advice confirmed that the current REA Branches do not have separate legal status and that the extant Rules of the REA did not require Branches to furnish this information to HQ REA. Trustees have changed the Rules of the REA and directed REA Branches to provide this financial information to HQ REA by 31 January each year. The funds associated with these branches are designated. Branches can also have the choice of having all funds administered by the REA fund manager in REA HQ.

Activities in Scotland

The Association has nine active branches in Scotland under the control of the Scotland & Northern Ireland Group Headquarters based at Leuchars, Fife. Because of this presence in Scotland the Association is registered with the Scottish Charity Regulator. As with the remaining UK and overseas branches, those branches based in Scotland do not carry out fundraising but aim to promote and support the Corps in accordance with the Objects of the Association.

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The Royal Engineers Association Trustee’s Report (continued) For the year ending 31 December 2023

2023 FINANCIAL REVIEW

Serving RE officers, warrant officers and soldiers subscribe to the Royal Engineers Central Charitable Trust under the Army’s ‘Days Pay Scheme’ (a payroll giving scheme). After the Institution of Royal Engineers has received a set percentage of officer and soldier subscriptions, the HQ Mess receive a set percentage of officer subscriptions, and the Corps WOs’ & Sgts’ Mess receive an element of the SNCOs and WOs subscriptions (their respective membership fees) the Association receives 50% of the monies received from the Days Pay Scheme (DPS). Any shortfall of income compared to expenditure comes from investment income. Donations and legacies that are retained are available for investment towards future benevolence. The Association’s combined income from DPS, 38% of income, investments 50% of income, legacy, and donations 12% of income is sufficient to sustain our annual operating expenditure in all the key areas of benevolence, welfare, and esprit de corps.

Summary

Net income before other recognised gains and losses was £38,101 (2022: Net expenditure £544,382). The Charity did not authorise any further funds for investment in 2023.

Balance Sheet

The accumulated funds increased by £71,628 to £12,163,258 (2022 decreased by £2,321,000 to £12,091,630). Notes to the Statement of Financial Activities and Balance Sheet provide supplementary information against each funding activity.

Expenditure on benevolence grants to individuals increased by £33,042 from £211,445 in 2022 to £244,487. Figures are now steadily recovering to pre-pandemic levels.

Investment house & policy

The REA invests in the Armed Forces Charities Growth & Income Fund, managed by BlackRock.

The Objective of the Fund is to achieve real growth in capital and income over the long term by investment mainly in equities and fixed income securities. Further investment details are given in the notes to the financial statements.

No additional investment units were purchased in 2023.

Investment performance

Investments delivered dividends of £406,809 in 2023 (2022: £417,306). 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%. Investment property rental generated £24,540 (2022: £17,938).

Risk statement.

The risks to which the Charity are exposed are reviewed by the REA Management Committee at each of its meetings. The basis of the review is a Risk Management Matrix that identifies and defines the risk, its impact and likelihood, and those mitigation measures the Trustees feel need to be applied. The Risk Management Matrix was reviewed at the September Board meeting in 2023 and members were content that systems have been established to mitigate those risks identified.

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The Royal Engineers Association Trustee’s Report (continued) For the year ending 31 December 2023

Key Risk

The key risks are financial and reputational with loss of income from our investments potentially restricting the services we deliver and thus our reputation among our members and beneficiaries which could further affect our income. In mitigation of this the Board ensures that we maintain sufficient investment funds to provide resilience and regularly reviews the status of our reserves.

Reserves

The accounts show net income of £38,101 (2022: net expenditure of £544,382) before gains on investments. Gains on investments amounted to £28,527 (2022: losses of £1,798,446) giving a positive net movement in funds of £71,628 (2022: negative net movement of £2,321,000). Gains on our investment property revaluation were £5,000 (2022: £21,828). It is the Trustees policy to realise capital from the Restricted Fund’s investment portfolios when required to provide funds in support of grant making or project funding.

Trustees review the reserves policy annually and aim to match the amount held in reserves to mitigate against potential financial threats over the long term. The charity relies upon the MoD for administration of the Day’s Pay Giving Scheme, provision of infrastructure, utilities, and a proportion of staff costs. If these MoD donated services were to be withdrawn, the charity would suffer an operational shock. The charity’s reserves must be able to meet such a shock if it were to occur.

Furthermore, it is the intention of the Trustees to maintain free reserves amounting to a minimum of 15 years’ operating costs (essentially benevolence payments and staffing costs). This is intended to provide adequate security against market volatility, and future risks to both income and expenditure whilst maintaining long-term benevolence support to the Corps’ beneficiaries. Current unrestricted reserves are £11,605,926 (2022: £11,462,915) which Trustees consider is consistent with this policy.

Public Benefit

The REA Trustees have paid due regard to the Charity Commission’s guidance on public benefit in deciding what activities the charity should undertake. This fund provides public benefit by assisting service personnel to perform their role more effectively within the Corps of Royal Engineers and assisting those of the wider family of the Corps (those who have left uniform). Where there is “need” the fund helps those who have fallen on hard times like debt, family separation, mobility aids for the infirm (such as stair lifts and electric powered scooters and wheelchairs) and walk-in showers at home where the applicant is unable to use a bath safely. In addition, the Fund has helped some of our serving Sappers where there is a “need”.

PLANS FOR THE FUTURE

- REA Strategy 2023 2027 Background

The Royal Engineers Association came into being on 12 October 1912 as the Old Comrades Association, with Field Marshall Kitchener as the President. In 1918 King George V became the patron and this Royal patronage continues today with Her Majesty the Queen. During the intervening 109 years the Association has evolved; in 1952, from Old Comrades to the Royal Engineers Association, in 1968 amalgamating the RE Benevolent Fund Ltd with the REA under a new constitution.

The 5-year strategy adopted in 2021 has seen the following developments which by December 2023 had been implemented.

  1. All benevolence processing is now digital and online, all data is now held within the Mosaic database operated by SSAFA.

  2. A new website has been launched moving most of our administration to digital space.

  3. A new community platform has been introduced and made available to all members.

  4. New branches are developing, and new social branches have been introduced. Increase outreach to Regiments with regular visits to units and presentations to recruits in phase 1 and phase 2 training.

  5. Introduction of new areas of support through the Ballard fund and Gabriel fund and expansion of the reach of the Kitchener fund.

  6. New classes of membership have been introduced to broaden the offer across the Sapper family.

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The Royal Engineers Association Trustee’s Report (continued) For the year ending 31 December 2023

  1. A fund management service is now being provided by REA HQ to enable branches to operate without having to have individual bank accounts and the need for treasurer to provide detailed accounts.

  2. All applications for events and services are now available online.

  3. A further strategic development is the planned introduction of fundraising activities in 2024.

Charitable Objects

Our objects are shown below and have always provided a clear guide to what the purpose and role of the Association. These provide a very sound foundation for all our activities.

  1. To promote and support the Corps among members of the Association in the following ways:

  2. a. By fostering esprit de corps and a spirit of comradeship and service.

  3. b. By maintaining an awareness of Corps traditions.

  4. c. By acting as a link between serving and retired members of the Corps.

  5. To provide financial and other assistance to serving and former members of the Corps, their spouses, widows, widowers, and dependents who are in need through poverty.

  6. To make grants, within Association Guidelines, to the Army Benevolent Fund and to other charities that further the objectives of the Association.

Governance

We have in place all the required elements for the Association to fulfil our legal obligations as a charity. Our charity’s governing document is a legal document. It works as a rulebook, setting out:

Vision

Ensure that all members of the Sapper family have access to the comradeship and support that enables them to live full lives.

Mission

Reach out to all members of the Sapper family and provide support to those in need by maintaining the links between all serving soldiers, veterans, and their families.

Strategic Aims

To deliver our vision and mission our strategic aims are:

Engagement

We will actively engage with our stakeholders and strive to be recognised, known, and understood by our members, partners, and relevant agencies. Extending our reach into the wider community using all means at our disposal to ensure effective communication to promote the mission of the REA.

9

The Royal Engineers Association Trustee’s Report (continued) For the year ending 31 December 2023

Support

We will ensure we understand and adapt to the needs of our members and those we support across the Sapper family, improving the lived experience of the sapper workforce and veteran community enabling them to reach full potential.

Benevolence (Aid)

To aid the Sapper family by providing appropriate, timely and effective assistance to those in need.

Sustainability

We will ensure we have people with the right skills and sufficient time and resources to deliver our mission, underpinned by a sustainable income.

Collaborative Working

We will work together within the organisation and with internal and external partners and stakeholders to deliver our objects. Examples of this are our collaboration and ongoing commitment with RBLI Aylesford with the opening of Sapper House. Our Commitment to ABF and SSAFA and our participation in Cobseo and the Single Cap Badge Association plus numerous other charities and organisations

Actions completed in 2023.

A new REA website was launched in July 2023, this has proved to be remarkably successful and has had valuable feedback, traffic to the website has increased by 167%.

The new website has enabled the digitisation of most of our standard forms and reports, improving the efficiency and responsiveness of REA HQ.

The development of the community platform was slowed until the website was completed with a launch of the test platform planned for February 2023

Succession Planning – with the imminent retirement of our Operations Manager in March 2023 the post was reviewed, and the decision taken to develop the role to a full-time position with increased responsibility for outreach, candidates were invited to interview in December 2023 and a replacement select to commence with the Association in March 2023

Cassino – Amazon Bridge Memorial Dedication, The President of the REA accompanied by the dedicated team of REA members who designed and built the Amazon Bridge Memorial traveled to Cassino in Italy to take part in a dedication of memorial and wreath laying ceremonies at the various memorials of the units who took part in the action in May 1944.

An extensive program of outreach visits have been conducted by the operations director and other members of REA HQ during 2023:

  1. Eastbourne AGM – 15th April 23

  2. Sub Unit Comd and SSM Conference – 4th May 23

  3. Liverpool Benevolence Visit 8th May 23

  4. Chesterfield Branch Meeting – 9th May 23

  5. Sco & NI Gp Standard Bearer Competition – 20th May 23

  6. National Memorial Arboretum 10th May 23

  7. Bath and West Wilts - 12th May 23

  8. 26 Engr Regt Unit Brief - 22nd May 23

  9. Sapper v Gunner Rugby Match - 24th May 23

  10. Peterborough Branch Meeting – 1st June 23

  11. Founders Day – 8th June 23

  12. Plymouth Branch Meeting – 29th June 23

  13. Chepstow Branch Visit – 30th June 23

  14. RAF Wyton (42 Engr Regt Geo) Open Day – 01 July 23

10

The Royal Engineers Association Trustee’s Report (continued) For the year ending 31 December 2023

  1. Operation Herrick Memorial Rededication - 6th July 23

  2. Weymouth Branch Meeting – 6th July 23

  3. Korea War Parade, Royal Horse Guards – 27TH July 23

  4. 3 RSME Regt Stable Belt Parade - 4th Aug 23

  5. Hull Breakfast Club - 19th Aug 23

  6. March Armed Forces Fair – 3rd Sep 23

  7. Troop Commanders Brief - 7th Sep 23

  8. 579 EOD Sqn Unit Brief – 17th Oct 23

  9. Truro Branch Meeting - 19th Oct 23

  10. 26 Engr Regt Online Brief - 7th Nov 23

  11. Ilford EOD Sqn Brief – 19th Nov 23

  12. NI Branch Winter Dinner - 19th Nov 23

Support for TASS athletes and Adventure training - this is now fully embedded within the REA and an increasing number of elite athletes were supported by the REA in 2023 and into 2024

Plans for 2024

Continuing with our current strategy, 2024 has several important milestones to be achieved.

Sappercom will become the primary membership communication platform with a target of having two thousand users by the end of the year. The aim is to provide a networking and communications tool for all members of the Association, families and serving soldiers to connect with the Association. The platform provides opportunities for users to communicate, create and promote events, share ideas, and discuss issues.

Outreach - increased capacity in REA HQ means a program of outreach visits to Units and branches will be developed for 2023 to include collaborating with other Corps charities, Branches, Groups and linking to Corps events.

Mission Activate – this is a recruitment initiative to encourage branches and groups to hold events to recruit new members for the Association. For 2024 we will continue look to increase the number of serving members and family members of the Association with the new membership types being expanded to include families

Marketing

REA HQ will develop a detailed marketing plan during 2024 to assist with our membership outreach and fundraising activities.

Auditors

Kreston Reeves LLP remain the Trustees choice as Corps auditors.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The REA is governed by the Deeds of Trust dated 19 November 1968 and Supplemental Deed dated 1 December 1974 as varied by a scheme of the Commissioners dated 11 August 1997 and supplemented by the Rules of the Royal Engineers Association 2009.

Trustees

The current Board of Trustees are listed on page 14.

The Board

The affairs of the Association shall be directed by the Board of the Association.

The composition of the Board shall be:

11

The Royal Engineers Association Trustee’s Report (continued) For the year ending 31 December 2023

The Chief Executive of the Association shall be Secretary to the Board. The Corps Treasurer and Operations Director shall be in attendance.

The Board shall exercise its responsibilities through subordinate committees subject to the provision that at least.

two members of any such committee shall be members of the Board.

The standing subordinate committees of the Board are:

Indemnity

An order from the Charity Commission authorising the Trustees to provide indemnity insurance for themselves out of the charity funds was issued on 15 September 2001 and has been complied with.

Organisational structure and networks

The Association is directed by its Board of Trustees, constituted as described in the Deed, and consisting of ex-officio, nominated and elected members. Its members are the Trustees of the Association’s funds. The Board meets as often as is necessary to fulfil its responsibilities, normally twice a year.

Certain routine business of a non-financial nature is delegated to the Management Committee, which meets twice a year. A benevolence committee meets quarterly to consider the more complicated applications for assistance and those requiring sums beyond the Chief Executive’s authorised powers.

A finance committee deals with matters and is responsible to the Board of Trustees.

The REA is divided into 17 Groups throughout the UK and overseas. Each group has a Group. Director who is appointed by the Corps Colonel and, in most cases, the Group Director is the senior serving Royal Engineer officer in the Group area. Within these Groups are 108 Branches. Of these, 94 Branches are in towns and cities in the UK and overseas who normally meet up once a month for camaraderie and Esprit de Corps. The remaining 14 branches are national and themed branches who represent specialist trades/functions or interests with affiliated members throughout the UK and overseas; they will normally meet up once a year. While all Branches are self-financing, grants are made to Groups, National and Themed branches to support

12

The Royal Engineers Association Trustee’s Report (continued) For the year ending 31 December 2023

annual meetings and travel, all Branches have the same objectives as those of the Association.

The Headquarters or Secretariat of the Association is managed by the Chief Executive who oversees all activities with particular emphasis on engaging and involving the REA and other veteran organisations in wider Corps affairs and business development. He is supported by an Operations Director who deals primarily with Esprit de Corps and benevolence matters.

With Sappers Network, HQ REA is established for four full time administrative and clerical staff. One of the Secretariat staff is established and paid as a Civil Servant within the Regimental Headquarters of the Royal Engineers. The Chief Executive, Operations Director and three full time members of staff are employed solely by the Association.

13

The Royal Engineers Association Reference and administrative details of the charity, its trustees, and advisers For the year ended 31 December 2023

REA Board of Trustees

Major General (retd) Alastair Dickinson CBE

Brig (retd) Matt Bazeley OBE

President

Vice President & Chair Benevolence Committee

Colonel (retd) Jonathan Ruddy

Honorary Treasurer & Chair Finance Committee

Air Commodore (retd) Colin Basnett CBE

Colonel Richard Hawkins MBE ADC

Warrant Officer Class One Spencer Eardley Lieutenant Colonel Martin Heffer RE TD

Service Charities

Corps Colonel

Corps Sergeant Major

Reserves

Colonel Claire James

Chair Recruiting Committee

Mr Jeffrey Jupp

Mr Rowan Adams

Major General Lord Lancaster of Kimbolton

Governance

Chair Fundraising committee.

Trustee

Mr Kenneth Kirk

Chief Executive

Chair Management Committee Secretary to Board of Trustees

Major (retd) Nick Gunnell Major (retd) Ian Sidebottom

Operations Director

Advisor

Corps Treasurer Secretary to Finance Committee

Charity registered numbers.

258322 and SC041832

Principal office

The Royal Engineers Association Ravelin Building Brompton Barracks Chatham Kent ME4 4UG

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The Royal Engineers Association

Independent auditor’s report to the Trustees of the Royal Engineers Association

We have audited the financial statements of Royal Engineers Association (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 for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2019.

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern.

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

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

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

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 us.

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.

16

The Royal Engineers Association

Independent Auditor’s report to the Trustees of Royal Engineers Association (continued)

Matters on which we are required to report by exception.

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

Respective responsibilities of Trustees and auditor

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

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

Auditor’s responsibilities for the audit of the financial statements

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

Our objectives are to obtain reasonable assurance about whether the financial statements 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 based on 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 can detect irregularities, including fraud is detailed below:

Capability of the audit in detecting irregularities, including fraud

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

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

17

The Royal Engineers Association

Independent Auditor’s report to the Trustees of Royal Engineers Association (continued)

Auditor’s responsibilities for the audit of the financial statements (continued)

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 are also:

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.

18

The Royal Engineers Association

Independent Auditor’s report to the Trustees of Royal Engineers Association (continued)

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 are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

19

The Royal Engineers Association

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 & Legacies 3 1,828,080 - 1,828,080 746,670
Other trading activities 9 119,665 - 119,665 137,064
Investment income 10 409,816 21,725 431,541 435,277
Other income 11 57,388 - 57,388 40,128
Total income 2,414,949 21,726 2,436,674 1,359,139
Expenditure on:
Raising Funds 12 3,600 - 3,600 1,101
Charitable activities 13 2,341,684 53,289 2,394,973 1,902,420
Total expenditure 2,345,284 53,289 2,398,573 1,903,521
Net expenditure before revaluations 69,665 (31,564) 38,101 (544,382)
Net gain on investments 19 26,931 1,596 28,527 (1,798,446)
Net Gains on property 20 5,000 - 5,000 21,828
Net movement in funds for year 101,596 (29,968) 71,628 (2,321,000)
Reconciliation of funds
Total funds at 1 January 2023 11,462,915 628,715 12,091,630 14,412,630
Total funds at 31 December 2023 11,564,511 598,748 12,163,258 12,091,630

The Statement of Financial Activities includes all gains and losses in the year.

All activities relate to continuing operations.

The notes on pages 23 to 36 form part of these financial statements

20

Th• Royal Englnwr• A••o¢latlon BalanM •h•ot For th• y••r •nd•d 31 D•c•mb•r 2023 Charlty Numb•r•: 268322 and 8C041832 Tawlbb a•••1 18 7Y,7f4 79,876 Inv••tm•nts 19 10,343A98 10.902,083 500,000 10.926.172 11,481,759 21 170283 173,453 C•#h •t b•nk 8nd In hand IA11,040 e84.714 Cr•dltorn: affw)uni• falllng du• wlthln ona year r13.954) 174.843) N•t eurr•nt u••l• 12091630 Charlty Fund• R••trlctsd fund• 067.3J2 828,716 Unmtrlctsd fund• 23 11 11462915 Totsl fund• 12 091830 Tho ilnan￿[ •t•t•mwth wern appTh•d by Trust￿• on 17th May 2024 and 81gn•d on thelr bohall. by. Ma￿T 0onorn1 A8 Dl¢kln•on CBE, Chalrnian Colon•l JM Ruddy. Honorary Trea•urgr The Mt•8 ¢)n 23 to 38 fofm part ol lIn￿l￿ $13tements 21

The Royal Engineers Association

Statement of Cash Flows For the year ended 31 December 2023

Note Note 2023 2022
£ £
Net cash used in operating activities 27 (388,866) (771,910)
Cash flows from investing activities
Interest and dividends 431,541 435,277
Movement on branches fixed assets (359) 3,715
Movement on Branch Investments (12,789) (7,637)
Purchase of investment properties - (478,172)
Disposal of fixed asset investments 600,000 700,000
Cash provided by (used in) investing activities 1,018,393 653,183
Increase/(decrease) in cash and cash
equivalents in the year 629,527 (118,727)
Cash and cash equivalents at the beginning of the year 511,261 629,988
Total cash and cash equivalents at the end of the year 1,140,788 511,261
Analysis of changes in net debt
At 31 Jan At 31 Dec
2023 Cashflows 2023
£ £ £
Cash and cash equivalents
Cash 511,261 629,527 1,140,788

22

The Royal Engineers Association

Notes to the financial statements For the year ended 31 December 2023

1 General administrative information

Royal Engineers Association is an unincorporated charity in England & Wales and Scotland with the registration numbers 258322 and SC041832. 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 the efficiency of the Corps in all or any of the following ways: by fostering Esprit de Corps and a spirit of comradeship amongst serving and former members of the Corps; to provice financial and other assistance to serving and former members of the Corps, their spouses, widows, widowers and dependants who are in need; to make grants to the Army Benevolent Fund The Soldiers Charity and to such other charities as the Council think fit which further the objectives of the Association.

2 Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with 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) - (Charities SORP (FRS 102) (effective 1 January 2019).

The Royal Engineers Association 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 for the fore-see able future.

2.3 Fund Accounting

General unrestricted funds represent unrestricted income of subscriptions, donations and legacies which is expendable at the discretion of the Council in the furtherance of the objects of the Association. Such funds may be held in order to finance both working capital and capital investment.

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

Restricted funds represent grants, donations and legacies received which are allocated by the donor for specific purpose. These are the Gabriel & Kitchener Scholarship funds which are explained in detail on page 1 in the Trustees' report.

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

23

The Royal Engineers Association

Notes to the financial statements For the year ended 31 December 2023

Accounting policies (continued)

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.

Subscriptions

Serving officers, warrant officers and soldiers subscribe to the Royal Engineers Central Charitable Trust under the Army's Day's Pay Scheme. The Association received 50% of the monies received from the Day's Pay Scheme.

Donations

Donations are included in full in the income and expenditure accounts on a receipts basis. Gift Aid donations are included in the income and expenditure account on a receivable basis.

2.5 Expenditure

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

Grants payable are payments made to third parties in the furtherance of the charitable objects of the trust which are always authorised by Trustees.

Cost of charitable activities includes grants made and the apportionment of support costs shown in note 13.

The cost of generating funds consists of investment, management, and certain legal fees.

2.6 Tangible fixed assets and depreciation

REA assets, including those purchases by Branches, costing more than £1,000 are capitalised. Depreciation is charged on assets using a straight line basis over their estimated life on the following basis:

Fixtures and fittings 10% per annum General property 10% per annum Computer equipment 20% per annum

REA Branch Standards are capitalised and maintained at their expected replacement value, £650.

2.7 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 revaluations and disposals throughout the year.

24

The Royal Engineers Association

Notes to the financial statements For the year ended 31 December 2023

Accounting policies (continued)

2.8 Debtors

Trade and other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid.

2.9 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.

2.10 Liabilities

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.

2.11 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.12 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.

2.13 Donated services and facilities

Intangible income, which comprises donated services, is 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 intangible expenditure.

2.14 Tender policy

Trustees introduced a tender policy that covers expenditure:

25

The Royal Engineers Association

Notes to the financial statements For the year ended 31 December 2023

Accounting policies (continued)

2.15 Taxation

The Royal Engineers Association is a registered charity and accordingly no provision is considered necessary for taxation.

2.16 Critical accounting estimates and areas of judgement

Estimates 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.

26

The Royal Engineers Association

Notes to the financial statements For the year ended 31 December 2023

3 Donations & Legacies
Donations (Note 4)
Legacies (Note 5)
Grants (Note 6)
Subscriptions (Note 7)
Donated services and facilities (Note 8)
All of the donations and legacies income was
4 Donations
General donations
Donations from branches
Tax refund
Website donations
Annual Dinner Receipts
Ijzendijke Receipts
5 Legacies
Legacies Brown/McCabe
6 Grants
H&M Charitable Trust
7 Subscriptions and tax
Membership
Grant from RECCT (represents 50% of Day's
Pay Scheme subscriptions to RECCT)		 Unrestricted
Restricted
Total
Total
funds
funds
funds
funds
2023
2023
2023
2022
£
£
£
£
79,067
-
79,067
147,357
1,228,307
-
1,228,307
88,419
2,500
-
2,500
2,500
434,620
-
434,620
421,418
83,586
-
83,586
86,976
1,828,080
-
1,828,080
746,670
unrestricted in 2023 and 2022.
£
£
£
£
63,077
-
63,077
120,994
-
-
-
30
1,462
-
1,462
2,582
7,988
-
7,988
23,751
3,540
-
3,540
-
3,000
-
3,000
-
-
-
-
79,067
-
15,990
147,357
£
£
£
£
1,228,307
-
1,228,307
88,419
£
£
£
£
2,500
-
2,500
2,500
£
£
£
£
29,697
-
29,697
29,947

404,923
-
404,923
394,471
434,620
-
434,620
424,418

27

The Royal Engineers Association

Notes to the financial statements

For the year ended 31 December 2023

8 Donated services and facilities
Gas
Electricity
Water and sewage
Community charge
Admin Utilities
MOD salaries
Admin Salaries
Total
9 Other trading activities
Activity Generating Income
Esprit de Corps income
10 Investment income
Investment Property Rent
Dividends – Armed Forces Charities Fund
Bank interest		 Unrestricted Restricted
Total
Total
funds
funds
funds
funds
2023
2023
2023
2022
£
£
£
£
1,869
-
1,869
1,807
2,131
-
2,131
2,131
860
-
860
860
5,686
-
5,686
5,686
1,524
-
1,524
1,478
51,545
-
51,545
45,014
19,971
-
19,971
30,000
83,586
-
83,586
86,976
£
£
£
£
-
-
-
616
119,665
-
119,665
136,448
119,665
119,665
137,064
£
£
£
£
24,540
-
24,540
17,938
385,274
21,535
406,809
417,306
2
190
192
33
409,816
21,725
431,541
435,277

Of the total investment income received; £431,541 (2022: £435,277), £409,816 was from unrestricted funds (2022: £414,466) and £21,725 was from restricted funds (2022: £20,811).

11 Other income

Sundry income
Refund of Previous Years Grants
Stable Belts
12 Raising Funds
Recruiting		 £
£
£
£
26,108
-
26,108
14,449
22,338
-
22,338
25,679
8,942
-
8,942
-
57,388
-
57,388
40,128
£
£
£
£
3,600
-
3,600
1,101

28

The Royal Engineers Association

Notes to the financial statements For the year ended 31 December 2023

13 Charitable Activities

**13 ** Charitable Activities
Direct costs Support
costs		 Total Total
2023 2023 2023 2022
£ £ £ £
Benevolence (Note 14) 750,346 192,609 942,955 955,031
Esprit de Corps (Note 15) 1,186,744 265,274 1,452,018 947,389
1,937,090 457,883 2,394,973 1,902,420
£2,341,684 of the charitable activities expenditure was from unrestricted funds (2022: £1,843,836)
and £53,289 was from restricted funds (2022: £58,584).
Unrestricted Restricted Total Total
funds funds funds funds
2023 2023 2023 2022
**14 ** Benevolence grants and allowances
£ £ £ £
Direct costs
Grants 321,240 53,289 374,529 290,870
Christmas grants 8,275 - 8,275 8,855
Weekly allowances 111,542 - 111,542 104,191
Army Benevolent Fund 66,000 - 66,000 60,000
SSAFA Families Help 30,000 - 30,000 33,970
Other charities 160,000 - 160,000 280,000
697,057 53,289 750,346 777,886
Support costs
Committee & Travel costs 4,291 - 4,291 1,985
Audit 4,920 - 4,920 4,200
Fees & Subscriptions 438 - 438 2,395
Insurance 1,186 - 1,186 750
Administration 12,466 - 12,466 29,162
Post & Telephone 4,518 - 4,518 4,475
Depreciation 110 - 110 292
Donated services support costs 28,052 - 28,052 24,788
Donated services MOD salaries 19,971 - 19,971 30,000
Staff costs 116,657 - 116,657 79,098
192,609 - 192,609 177,145
889,666 53,289 942,955 955,031

29

The Royal Engineers Association

Notes to the financial statements For the year ended 31 December 2023

Unrestricted
Restricted
Total
Total
funds
funds
funds
funds
2023
2023
2023
2022
15 Esprit de Corps
£
£
£
£
Direct costs
Corps activities
950,350
-
950,350
432,538
Branch donations
22,229
-
22,229
24,565
Branch activities
201,685
-
201,685
243,678
Annual Conference
-
-
-
3,121
Sapper Sunday Lunch
1,596
-
1,596
1,295
Annual Dinner
10,884
-
10,884
5,264
1,186,744
-
1,186,744
710,461
Support costs
Committee & Travel costs
17,158
-
17,158
7,941
Audit
4,920
-
4,920
4,200
Fees & Subscriptions
438
-
438
2,395
Insurance
1,186
-
1,186
750
Administration
14,227
-
14,227
32,282
Post & telephone
4,518
-
4,518
4,475
Depreciation
2,099
-
2,099
5,543
Donated services support costs
35,563
-
35,563
32,188
Staff Costs
185,165
-
185,165
147,154
265,274
-
265,274
236,928
1,452,018
-
1,452,018
947,389
16 Net Income / Expenditure
This is stated after charging:
£
£
Depreciation of tangible fixed assets:
‑owned by the charity
2,2615,835
Auditor's remuneration
9,840 8,400		 Unrestricted
Restricted
Total
Total
funds
funds
funds
funds
2023
2023
2023
2022
15 Esprit de Corps
£
£
£
£
Direct costs
Corps activities
950,350
-
950,350
432,538
Branch donations
22,229
-
22,229
24,565
Branch activities
201,685
-
201,685
243,678
Annual Conference
-
-
-
3,121
Sapper Sunday Lunch
1,596
-
1,596
1,295
Annual Dinner
10,884
-
10,884
5,264
1,186,744
-
1,186,744
710,461
Support costs
Committee & Travel costs
17,158
-
17,158
7,941
Audit
4,920
-
4,920
4,200
Fees & Subscriptions
438
-
438
2,395
Insurance
1,186
-
1,186
750
Administration
14,227
-
14,227
32,282
Post & telephone
4,518
-
4,518
4,475
Depreciation
2,099
-
2,099
5,543
Donated services support costs
35,563
-
35,563
32,188
Staff Costs
185,165
-
185,165
147,154
265,274
-
265,274
236,928
1,452,018
-
1,452,018
947,389
16 Net Income / Expenditure
This is stated after charging:
£
£
Depreciation of tangible fixed assets:
‑owned by the charity
2,2615,835
Auditor's remuneration
9,840 8,400		 Unrestricted
Restricted
Total
Total
funds
funds
funds
funds
2023
2023
2023
2022
15 Esprit de Corps
£
£
£
£
Direct costs
Corps activities
950,350
-
950,350
432,538
Branch donations
22,229
-
22,229
24,565
Branch activities
201,685
-
201,685
243,678
Annual Conference
-
-
-
3,121
Sapper Sunday Lunch
1,596
-
1,596
1,295
Annual Dinner
10,884
-
10,884
5,264
1,186,744
-
1,186,744
710,461
Support costs
Committee & Travel costs
17,158
-
17,158
7,941
Audit
4,920
-
4,920
4,200
Fees & Subscriptions
438
-
438
2,395
Insurance
1,186
-
1,186
750
Administration
14,227
-
14,227
32,282
Post & telephone
4,518
-
4,518
4,475
Depreciation
2,099
-
2,099
5,543
Donated services support costs
35,563
-
35,563
32,188
Staff Costs
185,165
-
185,165
147,154
265,274
-
265,274
236,928
1,452,018
-
1,452,018
947,389
16 Net Income / Expenditure
This is stated after charging:
£
£
Depreciation of tangible fixed assets:
‑owned by the charity
2,2615,835
Auditor's remuneration
9,840 8,400
1,186,744
-
17,158
-
4,920
-
438
-
1,186
-
14,227
-
4,518
-
2,099
-
35,563
-
185,165
-		 1,186,744
710,461
17,158
7,941
4,920
4,200
438
2,395
1,186
750
14,227
32,282
4,518
4,475
2,099
5,543
35,563
32,188
185,165
147,154
265,274
-		 265,274
236,928
1,452,018
-		 1,452,018
947,389
£
£
2,2615,835
9,840 8,400

‑ During the year, no Trustees received any remuneration (2022 £NIL). ‑ During the year, no Trustees received any benefits in kind (2022 £NIL). Trustees received reimbursement of expenses amounting to £Nil in the current year, (2022 - £Nil).

30

The Royal Engineers Association

Notes to the financial statements For the year ended 31 December 2023

Total Total
funds funds
2023 2022
**17 ** Staff costs £ £
Staff costs were as follows:
Wages and salaries 265,220 198,570
Social security costs 21,006 14,083
Pension costs 15,597 13,599
301,823 226,252
The average number of persons employed by the Charity during the year was as follows:
No.
 No.
Management and administration of the charity 17 14
The average headcount expressed as full-time equivalents was:
No.
 No.
Management and administration of the charity 9 8
The number of employees whose benefits (excluding employer pension
costs) exceeded £60,000 was: 2023 2022
No No
In the band £70,001 - £80,000 1 1

The total employment benefits including employer pension contributions of the key management personnel were £83,654 (2022 - £63,745).

18 Tangible fixed assets

Tangible fixed assets
Cost
At 1 January 2023
Movement in branches fixed assets
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		 Unrestricted
Designated
Fixtures &
fittings
Unrestricted
General
Property
Unrestricted
General
Computer
equipment
Total
£
£
£
£
86,200
115,591
25,651
227,442
359
-
-
359
86,559
115,591
25,651
227,801
11,865
113,384
22,517
147,766
50
1,615
596
2,261
-
-
-
11,915
114,999
23,113
150,027
74,644
592
2,538
77,774
74,335
2,207
3,134
79,676

31

The Royal Engineers Association

Notes to the financial statements For the year ended 31 December 2023

19 Fixed asset investments

Market value
At 1 January 2023
Disposals
Revaluations
Movement on branch investments
At 31 December 2023
Historical cost
Investments at market value comprise:
Listed investments
Branch investments
Total market value		 Listed
Branch
Total
securities Investments
£
£
£
10,866,216
35,867
10,902,083
(600,000)
-
(600,000)
28,526
28,526
-
12,789
12,789		 Listed
Branch
Total
securities Investments
£
£
£
10,866,216
35,867
10,902,083
(600,000)
-
(600,000)
28,526
28,526
-
12,789
12,789
10,294,742 48,656
10,343,398
5,731,035 25,981
5,757,016
2023
2022
£
£
10,294,742
10,866,216
48,656
35,867
10,343,398
10,902,083

All of the fixed asset investments are held in the UK.

Material investments

All invested funds were held in the BLK Armed Forces Charities Growth & Income Fund, managed by BlackRock Investment Managers Limited.

20 Investment Properties

Investment Properties
Valuation
At 1 January 2023
Revaluation
At 31 December 2023		 Freehold
Investment
Property
500,000
5,000
505,000

Going forward the investment properties will be valued on an open market value for existing use basis

32

The Royal Engineers Association

Notes to the financial statements For the year ended 31 December 2023

21 Debtors
Other debtors
Prepayments and accrued income
Branch Debtors
22 Creditors:
Amounts falling due within one year
Branch creditors
Other creditors		 2023
2022
£
£
168,825
147,362
-
26,091
1,428
-
170,253
173,453
£
£
2,043
728
71,911
74,115
73,954
74,843

33

The Royal Engineers Association

Notes to the financial statements For the year ended 31 December 2023

23 Statement of funds

Current Year
Designated funds
Ballard Grants
Gabriel Grants
Branch funds
Total Designated funds
General funds
General funds
Total Unrestricted funds
Restricted funds
Kitchener Scholarship Fund
Total Restricted Funds
Total of funds
Prior Year
Designated funds
Branch funds
General funds
General funds
Total Unrestricted funds
Restricted funds
Kitchener Scholarship Fund
Total Restricted Funds
Total of funds		 Brought
Income
Expenditure
Transfers
Gains/
Carried
Forward
in/out
(Losses)
Forward
£
£
£
£
£
£
-
-
-
181,332
-
181,332
-
-
-
50,000
-
50,000
601,632
229,657
(223,915)
-
-
607,374
601,632
229,657
(223,915)
231,332
-
838,706
10,861,283
2,424,734
(2,361,001)
(189,727)
31,931
10,767,220
11,462,915
2,654,391
(2,584,916)
41,605
31,931
11,605,926
628,715
21,915
(53,289)
(41,605)
1,596
557,332
628,715
21,915
(53,289)
(41,605)
1,596
557,332
12,091,630
2,676,306
(2,638,205)
-
33,527
12,163,258
Brought
Income
Expenditure
Transfers
Gains/
Carried
Forward
in/out
(Losses)
Forward
£
£
£
£
£
£
578,879
290,996
(268,243)
-
-
601,632
13,079,194
1,047,332
(1,576,694)
-
(1,688,549)
10,861,283
13,658,073
1,338,328
(1,844,937)
-
(1,688,549)
11,462,915
754,557
20,811
(58,584)
-
(88,069)
628,715
754,557
20,811
(58,584)
-
(88,069)
628,715
14,412,630
1,359,139
(1,903,521)
-
(1,776,618)
12,091,630

34

The Royal Engineers Association

Notes to the financial statements For the year ended 31 December 2023

24 Analysis of net assets between funds

Current Year
Tangible fixed assets
Fixed asset investments
Investment properties
Current assets
Creditors due within one year
Prior Year
Tangible fixed assets
Fixed asset investments
Investment properties
Current assets
Creditors due within one year		 Unrestricted
Restricted
Total
funds
funds
funds
2023
2023
2023
£
£
£
77,774
-
77,774
9,798,441
544,957
10,343,398
505,000
-
505,000
1,298,854
12,186
1,311,040
(73,954)
-
(73,954)
11,606,115
557,143
12,163,258
Unrestricted
Restricted
Total
funds
funds
funds
2022
2022
2022
£
£
£
79,676
-
79,676
10,358,722
543,361
10,902,083
500,000
-
500,000
599,360
85,354
684,714
(74,843)
-
(74,843)
11,462,915
628,715
12,091,630

35

The Royal Engineers Association

Notes to the financial statements For the year ended 31 December 2023

25 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 £15,597 (2022 - £13,599).

26 Related party transactions

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

27 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
Deduct gains / add back losses on investment properties
Decrease (increase) in debtors
Increase (decrease) in creditors
Net cash used in operating activities		 Total
Total
funds
funds
2023
2022
£
£
71,628
(2,321,000)
2,261
5,835
(431,541)
(435,277)
(28,526)
1,798,446
(5,000)
(21,828)
3,200
171,911
(889)
30,003
(388,866)
(771,910)

36