**Charity registration number 272108 (England and Wales)**
## **THE CHESHIRE MILITARY MUSEUM**
**ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025**
## **THE CHESHIRE MILITARY MUSEUM**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees'**|Professor H O'Sullivan BSc MBA|
|---|---|
||Lt Col Richard Sernberg|
||Brigadier Benjamin Wilde (Chairman)|
||Colonel H W Williams|
||Major M E Hockedy|
||Mr J B Etherington|
||Mr N Glazebrook|
||Mr R Forde-Johnston|
|**Charity number (England and Wales)**|272108|
|**Principal address**|Regimental Headquarters|
||The Mercian Regiment|
||The Castle|
||Chester|
||Cheshire|
||CH1 2DN|
|**Independent examiner**|Xeinadin North West Limited|
||First Floor, The Foundation|
||Herons Way|
||Chester Business Park|
||Chester|
||Cheshire|
||CH4 9GB|
## **THE CHESHIRE MILITARY MUSEUM**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 2|
|Independent examiner's report|3|
|Statement of financial activities|4|
|Balance sheet|5|
|Notes to the financial statements|6 - 13|
## **THE CHESHIRE MILITARY MUSEUM**
## **TRUSTEES' REPORT**
## _**FOR THE YEAR ENDED 31 MARCH 2025**_
The trustees' present their annual report and financial statements for the year ended 31 March 2025.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
## **Objectives and activities**
The charity's objects are to promote the efficiency of the Regiments; and to advance the education of the public in the history of the regiments and former regiments and any other military unit, regiment or service with past or present connections to the County of Cheshire; by the provision and maintenance of the regimental collection.
The trustees' have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
## **Achievements and performance**
A number of small temporary exhibitions ran alongside the main exhibit. These being the Trench art exhibition and Animals at war exhibition.
Links with local schools and youth organisations continue to grow with a number of educational visits hosted by the staff.
The digitalisation of the Cheshire Regiment archive continues with much of the work in this area being undertaken with the aid of volunteers whose input, together with that of volunteers in other areas of the Museum including refurbishment is invaluable. The trustees are immensely grateful.
The museum funds received a welcome boost from a number of generous donations which will enable us to carry forward our work.
Finally, the Friends of the museum have increased considerably in number during the last year and there subscriptions have enabled us to launch a new website and fund specific displays.
## **Financial review**
The charity had income for the year of £121,351 and expenditure of £99,804. As a result there was an annual surplus of £21,547 (2024 - surplus £14,916). The balance sheet shows fixed assets of £151,745, and net current assets of £276,761, giving total net assets of £424,760.
At 31 March 2025 restricted funds were £nil and unrestricted funds £424,760.
## **Reserves policy**
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees' consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
- 1 -
## **THE CHESHIRE MILITARY MUSEUM**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2025**_
## **Investment policy and objectives**
The trustees have the power to make investments as they see fit.
## **Risk management**
The trustees' have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
## **Plans for future periods**
The Museum Friends have a number of special events planned for the future. Now the revamp of the museum website has been completed further attempts to improve marketing continue to be investigated. The trustees are also undertaking work to secure the future of the museum and the necessary funding streams.
## **Structure, governance and management**
The charity is controlled by its governing document, a deed of trust, and constitutes an unincorporated charity.
The trustees' who served during the year and up to the date of signature of the financial statements were: Professor H O'Sullivan BSc MBA
Lt Col Richard Sernberg Brigadier Benjamin Wilde (Chairman) Colonel H W Williams Major M E Hockedy Mr J B Etherington Mr N Glazebrook Mr R Forde-Johnston
## **Recruitment and appointment of trustees**
Trustees are either nominated by the Mercian Regiment or recruited by the board of trustees. They receive training as appropriate.
The Trustees' report was approved by the Board of Trustees'.
## M E Hockedy
6 August 2025
- 2 -
## **THE CHESHIRE MILITARY MUSEUM**
## **INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEES' OF THE CHESHIRE MILITARY MUSEUM**
I report to the trustees' on my examination of the financial statements of The Cheshire Military Museum (the charity) for the year ended 31 March 2025.
## **Responsibilities and basis of report**
As the trustees' of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011.
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
## **Independent examiner's statement**
Your attention is drawn to the fact that the charity has prepared the financial statements in accordance with the relevant version of the Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard 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 now been withdrawn. I understand that this has been done in order for the financial statements to provide a true and fair view in accordance with UK Generally Accepted Accounting Practice.
- I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 1 accounting records were not kept in respect of the charity as required by section 130 of the Charities Act 2011.
- 2 the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the applicable requirements concerning the form and content of financial statements set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the financial statements give a true and fair view, which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
## **Xeinadin North West Limited**
First Floor, The Foundation Herons Way Chester Business Park Chester Cheshire CH4 9GB 6 August 2025
- 3 -
## **THE CHESHIRE MILITARY MUSEUM**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 MARCH 2025**_
|||**Unrestricted**|**Unrestricted**|
|---|---|---|---|
|||**funds**|**funds**|
|||**2025**|**2024**|
||**Notes**|**£**|**£**|
|**Income and endowments from:**||||
|Donations and legacies|**2**|58,846|47,496|
|Charitable activities|**3**|36,318|31,267|
|Other trading activities|**4**|19,700|15,180|
|Investments|**5**|2,965|1,835|
|Other income|**6**|3,522|223|
|**Total income**||121,351|96,001|
|**Expenditure on:**||||
|Raising funds|**7**|15,118|6,575|
|Charitable activities|**8**|84,686|74,510|
|**Total expenditure**||99,804|81,085|
|**Net income and movement in funds**||21,547|14,916|
|**Reconciliation of funds:**||||
|Fund balances at 1 April 2024||403,213|388,297|
|**Fund balances at 31 March 2025**||424,760|403,213|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 4 -
## **THE CHESHIRE MILITARY MUSEUM**
## **BALANCE SHEET**
## _**AS AT 31 MARCH 2025**_
|**Notes**
**Fixed assets**
Tangible assets
**13**
**Current assets**
Stocks
**14**
Debtors
**15**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**16**
**Net current assets**
**Total assets less current liabilities**
**The funds of the charity**
Unrestricted funds
**17**|**2025**
**£**
8,767
401
267,593
276,761
(3,746)|**£**
151,745
273,015
424,760
424,760
424,760|**2024**
**£**
12,408
252
241,027
253,687
(3,513)|**£**
153,039
250,174|
|---|---|---|---|---|
|||||403,213|
|||||403,213|
|||||403,213|
The financial statements were approved by the trustees' on 6 August 2025
- 5 -
**THE CHESHIRE MILITARY MUSEUM**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2025**_
## **1 Accounting policies**
## **Charity information**
The Cheshire Military Museum is an unincorporated charity. The principle address is Regimental Headquarters, The Mercian Regiment, The Castle, Chester, Cheshire, CH1 2DN.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's governing document, the Charities Act 2011 and “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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin
1 not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
The trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees' continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees' in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
## **1.4 Income**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
- 6 -
## **THE CHESHIRE MILITARY MUSEUM**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2025**_
## **1 Accounting policies**
**(Continued)**
## **1.5 Expenditure**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Appeal Property Improvements
in accordance with the property
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
## **1.7 Stocks**
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
## **1.8 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **1.9 Financial instruments**
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
- 7 -
## **THE CHESHIRE MILITARY MUSEUM**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2025**_
## **1 Accounting policies**
**(Continued)**
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
## **1.10 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.11 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
## **2 Income from donations and legacies**
||**Unrestricted**|**Unrestricted**|
|---|---|---|
||**funds**|**funds**|
||**2025**|**2024**|
||**£**|**£**|
|Donations and gifts|34,118|23,833|
|Other|24,728|23,663|
||58,846|47,496|
- 8 -
## **THE CHESHIRE MILITARY MUSEUM**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2025**_
## **3 Income from charitable activities**
|||**Unrestricted**|**Unrestricted**|
|---|---|---|---|
|||**funds**|**funds**|
|||**2025**|**2024**|
|||**£**|**£**|
||**Charitable activities**|||
||Education/school visits|1,652|1,310|
||Research|1,505|1,350|
||Subscriptions - friends|13,994|9,675|
||Admissions|19,167|18,932|
|||36,318|31,267|
|**4**|**Income from other trading activities**|||
|||**Unrestricted**|**Unrestricted**|
|||**funds**|**funds**|
|||**2025**|**2024**|
|||**£**|**£**|
||Shop income|19,700|15,180|
|**5**|**Income from investments**|||
|||**Unrestricted**|**Unrestricted**|
|||**funds**|**funds**|
|||**2025**|**2024**|
|||**£**|**£**|
||Bank Interest|2,965|1,829|
||NSB Interest|-|6|
|||2,965|1,835|
|**6**|**Other income**|||
|||**Unrestricted**|**Unrestricted**|
|||**funds**|**funds**|
|||**2025**|**2024**|
|||**£**|**£**|
||Other income|3,522|223|
- 9 -
## **THE CHESHIRE MILITARY MUSEUM**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2025**_
## **7 Expenditure on raising funds**
||**Unrestricted**|**Unrestricted**|
|---|---|---|
||**funds**|**funds**|
||**2025**|**2024**|
||**£**|**£**|
|**Trading costs**|||
|Merchandise|15,118|6,575|
## **8 Expenditure on charitable activities**
|||**Charitable**|**Charitable**|
|---|---|---|---|
|||**activities**|**activities**|
|||**2025**|**2024**|
|||**£**|**£**|
||**Direct costs**|||
||Staff costs|58,312|54,551|
||Depreciation and impairment|1,294|1,294|
||Volunteers allowance|4,376|1,850|
||Friends - office costs|715|1,544|
||Display, exhibition and marketing|8,767|7,958|
||Insurance|2,814|3,187|
|||76,278|70,384|
||**Share of support and governance costs (see note 9)**|||
||Support|6,013|3,166|
||Governance|2,395|960|
|||84,686|74,510|
||**Analysis by fund**|||
||Unrestricted funds|84,686|74,510|
|**9**|**Support costs allocated to activities**|||
|||**2025**|**2024**|
|||**£**|**£**|
||Postage and stationery|3,157|1,635|
||Office expenses|3,209|785|
||Sundries|4|150|
||Training and education|471|327|
||Subsciptions|367|269|
||Governance costs|1,200|960|
|||8,408|4,126|
||**Analysed between:**|||
||Charitable activities|8,408|4,126|
- 10 -
## **THE CHESHIRE MILITARY MUSEUM**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2025**_
|**9**
**Support costs allocated to activities**
**Governance costs comprise:**
Audit fees
**10**
**Net movement in funds**
The net movement in funds is stated after charging/(crediting):
Fees payable for the independent examination of the charity's financial
statements
Depreciation of owned tangible fixed assets|**(Continued)**
**2025**
**2024**
**£**
**£**
1,200
960
1,200
960
**2025**
**2024**
**£**
**£**
1,200
960
1,294
1,294|**(Continued)**
**2025**
**2024**
**£**
**£**
1,200
960
1,200
960
**2025**
**2024**
**£**
**£**
1,200
960
1,294
1,294|
|---|---|---|
|||960|
|||**2024**
**£**
960
1,294|
## **11 Trustees'**
None of the trustees' (or any persons connected with them) received any remuneration or benefits from the charity during the year. Trustees expenses totalled £nil (2024: £1,292).
## **12 Employees**
The average monthly number of employees during the year was:
||**2025**|**2024**|
|---|---|---|
||**Number**|**Number**|
||3|3|
|**Employment costs**|**2025**|**2024**|
||**£**|**£**|
|Wages and salaries|52,683|49,067|
|Social security costs|4,249|3,695|
|Other pension costs|1,380|1,789|
||58,312|54,551|
The key management personnel of the Charity comprise the Trustees. The total employee benefits of the key management personnel of the Museum were £nil (2023: £nil).
There were no employees whose annual remuneration was more than £60,000.
- 11 -
## **THE CHESHIRE MILITARY MUSEUM**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2025**_
|**13**
**Tangible fixed assets**
**Cost**
At 1 April 2024
At 31 March 2025
**Depreciation and impairment**
At 1 April 2024
Depreciation charged in the year
At 31 March 2025
**Carrying amount**
At 31 March 2025
At 31 March 2024
All fixed assets are used for charitable purposes.
**14**
**Stocks**
Stocks
**15**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
**16**
**Creditors: amounts falling due within one year**
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income|**Appeal**
**Property**
**Improvements**
**£**
487,867
487,867
334,828
1,294
336,122
151,745
153,039
**2025**
**2024**
**£**
**£**
8,767
12,408
**2025**
**2024**
**£**
**£**
401
252
**2025**
**2024**
**£**
**£**
2,118
1,715
279
27
249
1,771
1,100
-
3,746
3,513|**Appeal**
**Property**
**Improvements**
**£**
487,867
487,867
334,828
1,294
336,122
151,745
153,039
**2025**
**2024**
**£**
**£**
8,767
12,408
**2025**
**2024**
**£**
**£**
401
252
**2025**
**2024**
**£**
**£**
2,118
1,715
279
27
249
1,771
1,100
-
3,746
3,513|
|---|---|---|
|||487,867|
|||334,828
1,294|
|||336,122|
|||151,745|
|||153,039|
|||**2024**
**£**
12,408|
|||**2024**
**£**
252|
|||**2024**
**£**
1,715
27
1,771
-|
|||3,513|
- 12 -
## **THE CHESHIRE MILITARY MUSEUM**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2025**_
## **17 Unrestricted funds**
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
||**At 1 April**|**Incoming**|**Resources**|**At 31 March**|
|---|---|---|---|---|
||**2024**|**resources**|**expended**|**2025**|
||**£**|**£**|**£**|**£**|
|General funds|403,213|121,351|(99,804)|424,760|
|**Previous year:**|**At 1 April**|**Incoming**|**Resources**|**At 31 March**|
||**2023**|**resources**|**expended**|**2024**|
||**£**|**£**|**£**|**£**|
|General funds|388,297|96,001|(81,085)|403,213|
## **18 Related party transactions**
There were no disclosable related party transactions during the year (2024 - none).
- 13 -