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2023-12-31-accounts

Charity no. 272740

The Corps of Royal Electrical and Mechanical Engineers Museum Report and Audited Financial Statements 31 December 2023

The Corps of Royal Electrical and Mechanical Engineers Museum

Reference and administrative details

For the year ended 31 December 2023

Charity number 272740 Registered office and The REME Charity, RHQ REME operational address The Prince Philip Barracks MoD Lyneham Lyneham Chippenham SN15 4XX Trustees The trustees who served during the year and up to the date of this report were as follows:

The REME Charity - sole corporate trustee

Trustees of The REME Charity: Maj Gen S M Andrews CBE Chair Cmdr M Ashton RN appointed 1 August 2023 Col M J A Bullard MBE Captain H Burns appointed 1 August 2023 J Foster appointed 17 January 2024 Col (Retd) R Fram MC Mr A P Graham resigned 7 November 2023 Maj P C D Hembery appointed 1 August 2023 Mr T Hirst appointed 1 August 2023 Ms R Norris appointed 13 January 2023 resigned 11 October 2023 Brig C P Phillips CBE Ms C C Robinson resigned 13 January 2023 Col A J Rogers resigned 11 October 2023 Col D G Scott Maj A Shand appointed 1 August 2023 Col M A Simpson QVRM TD VR P Tumim appointed 1 August 2023 Principal staff Mrs Barbel Harris Chief Executive Officer Major (Retd) R J Henderson Museum Director Bankers Holts Farnborough Branch Royal Bank of Scotland Plc Lawrie House Victoria Road Farnborough GU14 7NR Solicitors Wilsons Solicitors LLP Alexandra House St Johns Street Salisbury Wiltshire SP1 2SB

1

The Corps of Royal Electrical and Mechanical Engineers Museum

Reference and administrative details

For the year ended 31 December 2023

Auditors

Godfrey Wilson Limited Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

2

The Corps of Royal Electrical and Mechanical Engineers Museum

Report of the trustees

For the year ended 31 December 2023

The trustees present their report along with the financial statements of the charity for the year ended 31 December 2023. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity’s Trust Deed, the Charities Act 2016, the Charities (Accounts and Reports) Regulations, and the Charities Statement of Recommended Practice (FRS102) effective 1 January 2019.

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The REME Museum appointed The REME Charity as its sole corporate trustee on 7 June 2016. First registered on 10 December 1976, the Governing Document was a Trust Deed; unincorporated association, which was varied by scheme on 28 April 1998 and further amended by the scheme on 7 June 2016.

Background

The REME Museum was first established in 1958 and was located in Moat House in Arborfield. Later the REME Museum was expanded and the collection was held over two locations, the main museum moved from Moat House to a new location in Hazebrouck Barracks in Arborfield and a vehicle collection was established in Prince Phillip Barracks in Bordon. In November 2015, and as part of the larger Defence Technical Training Change Programme move, the REME Museum relocated to its current location in MoD Lyneham. The main collection is held in building 311 and the reserve vehicle collection is held in building 184, a hangar at A site.

Recruitment and appointment of trustees

Trustees are selected by virtue of their knowledge, experience and expertise and are invited onto the board of trustees after recommendation. They are encouraged to keep themselves up to date with current regulatory, reporting and compliance related matters thereby enabling them to fulfil their obligations. Succession plans are in place to ensure the board remains current and effective.

Organisational structure and governance

The board of trustees is an independent decision making governing body which meets at least twice a year. The board consists of 13 trustees led by a Chairman. Trustees are given responsibility for different areas of the business, with the Museum having a dedicated trustee. The Museum Development Committee meets twice yearly and short, medium, and long term plans are reviewed. The execution of the day to day running of the business is delegated to the Museum Director.

Relationships with other charities

The Museum Fund is a designated fund within The REME Charity, which has the responsibility for governance, invests the Museum’s reserves, provides an annual grant and employs the museum staff. The Museum Development Fund raises its own income through donations, independently of The REME Charity.

Risk management

The REME Charity maintains a risk register which includes risk to the Museum and is reviewed annually. Risks are categorised in five main areas, Impact, Financial Sustainability, Compliance, Operational and Hazards and Reputation. The REME Museum is dependent on MOD support for staff wages and its building infrastructure and support from The REME Charity. If the MoD funded Grant in Aid ceased and the MOD decided to charge rent for the building, this would have significant impact on the Museum's ability to operate profitably. The Museum is working to become selfsufficient but in the short term, has the financial backing of The REME Charity.

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The Corps of Royal Electrical and Mechanical Engineers Museum

Report of the trustees

For the year ended 31 December 2023

OBJECTS AND ACTIVITIES Public benefit

The trustees have had regard to the Charity Commission’s guidance on public benefit. The REME Museum provides public benefit by educating the visitors about the character, activities and history of the British Army and specifically the Corps of REME. It does this by telling a compelling story of those who served in the REME, by providing a community hub to build and strengthen the links between the military and civilian communities, and by providing a place of education for soldiers and school children.

Object

The defined object of the REME Museum is to uphold the traditions of the Corps of REME and to perpetuate its deeds.

The REME Museum fulfils its object by holding and maintaining the Corps Collections and ensuring that new members of the Corps are educated in its history. It accurately accounts for all items in the collections and ensures appropriate security measures are in place. It shares its history through loans to other museums and through allowing the general public access to its collections and/or historical records.

2023 themes and activities

The Museum enjoyed its most successful year to date. The following was achieved:

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The Corps of Royal Electrical and Mechanical Engineers Museum

Report of the trustees

For the year ended 31 December 2023

Strategies to achieve objects

The trustees make an annual estimate of the likely financial call on the Museum based upon historical data and a planned budget. A grant of £121,207 from The REME Charity was required in 2023. Income to the Museum Development Fund comes from donations to the Gold Card scheme. The scheme is open to serving members of REME and provides free admission for life for the individual concerned and their family, in return for a small monthly donation over four years. These income strategies enable the object to be met.

Significant charitable activities

The Museum was able to secure in principle the acquisition of Mr Adam Miller’s Conspicuous Gallantry Cross (CGC). The only CGC awarded to date to a REME soldier. The Museum has provided free use of the education suite on most Mondays to the Alzheimer's Support Group. 60 Ukraine soldiers were given free entry to the Museum whilst attending training at MOD Lyneham. A total of 1,765 adults and 450 children attended the Museum using the Gold card scheme. Throughout 2023 the Museum continued to provide displays at external events such as the Basingstoke Festival of Transport and Capel Military Vehicle show where the Museum’s Conqueror Armoured Recovery Vehicle won the “John Newton Memorial Prize".

ACHIEVEMENTS AND PERFORMANCE

Performance management

The REME Museum recognises the importance of managing performance and it does this by measuring a number of key areas and setting targets in the annual plan.

2023 performance

The Museum received its highest ever number of visitors of 18,059 visitors and generated a total admissions income of £83,565. It also generated a further £12,461 from Corporate Hire, Education, Research Fees and Donations. Plus, a monetary value of a further £17,290 in services provided free of charge in support of the Corps.

The Museum received 806 email enquiries. The Archives department dealt with a total of 531 research enquiries completing 504. A total of 188 new items were added to the collections with no reported losses. The Museum’s educational programme delivered formal education workshops to 1,702 school pupils accompanied by 166 teachers and teaching assistants.

Performance achieved against fundraising target

The Museum Development Fund raised £89,569 through the Gold Card Scheme and the Museum generated a further £83,565 from admissions (2022: £42,675), education £8,009 (awaiting payment of a further £378) research £2,258, Corporate hire £1,890 and £305 in donations. The Museum also provided £17,290 worth of free services in support of the Corps, in research, education, free admission and the use of corporate hire facilities. The Museum exceeded significantly both the income and visitor number targets of £44,500 and 12,000. The Museum Development fund exceeded its income targets.

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The Corps of Royal Electrical and Mechanical Engineers Museum

Report of the trustees

For the year ended 31 December 2023

Infrastructure

There were no major infrastructure issues in 2023. There has been no progress on the issuing of a formal lease from the DIO Land Management Services (LMS). The Museum does however still have a signed letter from the MoD stating that terms have been agreed upon for a 30-year lease by the Secretary of State for Defence. The Museum has submitted a request to MOD Lyneham to be included in the installation of e-charging points once the repayment method has been approved by the MOD top level budget holder.

FINANCIAL REVIEW

Reserves policy

The trustees’ policy is not to keep a reserve in the Museum Fund because the Fund is essentially underwritten by The REME Charity. However, The REME Charity does not underwrite the Museum Development Fund. The trustees have decided to designate expenditure from this fund to mounting exhibitions and the purchase of portable items in order to consolidate and improve the museum in Lyneham. The trustees assess that maintaining cash reserves of at least £100k would be an appropriate planning figure at present to meet this requirement.

In 2022 a decision was made by the trustees to write off the Heritage Assets below £3,000 and Tangible Fixed Assets below £2,000 to streamline the management of the assets. As the organisation holds a large number of assets, this policy change allows for a simpler register of assets to be maintained, reducing administrative burden and improving efficiency by focusing valuations on high value heritage assets.

From an accounting presentation perspective this is shown a “Loss on Disposal”. The Trustees wish to emphasise, however, that this is a one-time occurrence and no assets have been sold or scrapped. It does not reflect any reduction in the overall value or ownership of the organisation's assets or its financial health.

Funding sources

The REME Charity (registered number 1165868) provides a grant to assist with the operational costs for the REME Museum and to ensure its continued operation. The REME Charity also manages an investment portfolio of which the Museum has an aliquot shareholding of 2.3541% (2022: 2.3717%); quarterly dividends are received. Grant in Aid, admissions, room rental and archival research provide other revenue and the Gold Card Scheme provided funding for the Development Fund.

Income for the year totalled £528,488 (2022: £536,058) This is split between the Development Fund and the Museum Fund as follows:

Museum Fund income for the year totalled £433,848 (2022: £431,549) and included £189,242 MoD Grant in Aid (2022: £181,754), £83,565 (2022: £42,675) in admissions, £2,258 (2022: £946) in research fees, £8,009 (2022: £2,067) in education fees, £1,890 in venue hire (2022: £2,475), £121,207 (2022: £149,292) in grants from the REME Charity and other grants and donations of £67,008 (2022: £35,072), as well as services and facilities donated by MoD of £17,290 (2022: £17,268).

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The Corps of Royal Electrical and Mechanical Engineers Museum

Report of the trustees

For the year ended 31 December 2023

Development Fund income (including restricted funds) for the year totalled £94,640 (2022: £104,509). The Museum Gold Card Scheme is a free admission membership scheme in which serving officers and soldiers can volunteer for. A small monthly donation is collected over a 4 year period and is placed in the Museum Development Fund. Other income comprised investment income and bank interest of £10,365 (2022: £10,458) and grants, donations and other trading income of £305 (2022: £184).

Expenditure

Expenditure for the year totalled £488,401 (2022: £1,208,930). This is split between the Development Fund, the Museum Fund and the British Museum Project as follows:

Museum Fund expenditure totalled £393,971 (2022: £1,103,877) and includes a loss on disposal of heritage assets of £5,250 (2022: £754,008), loss on revaluation of heritage assets £35,000 (2022: £Nil), staff costs (including salaries and donated staff time) of £344,224 (2022: £311,072), donated facilities costs of £Nil (2022: £Nil) and other expenditure of £9,497 (2022: £38,797), which includes expenditure on displays and exhibitions, children's educational activities and other office and premises costs. Staff costs are supported by the Grant in Aid donation from MoD of £189,242 (2022: £181,754).

Development Fund expenditure (including restricted funds) totalled £94,430 (2022: £104,808) and includes depreciation of £64,070 (2022: £46,315), loss on disposal of fixed assets of £Nil (2022: £27,470), contractor costs of £5,940 (2022: £9,803), advertising and marketing costs of £12,239 (2022; £9,629) and other expenditure of £17,431 (2022: £11,591) which includes expenditure on exhibits, small equipment, IT, website and other office expenses.

British Museum Project expenditure totalled £Nil (2022: £245).

Investment policy

The Museum Development Fund has an investment aliquot share of 2.3541% in The REME Charity portfolio and follows their investment policy.

PLANS FOR FUTURE PERIODS

Future aims, objectives and planned outputs

The Museum’s future aims are based on the following areas:

The Museum plans to combine the two events (Armed Forces Day and the Summer Fete) that produced the lowest attendance figures in 2023, to be run on the same day in 2024. There is always a lot of competition for visitors on Armed Forces Day, it is hoped the combined event to be called the Museum Extravaganza will draw the lion’s share of visitors from the local communities.

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The Corps of Royal Electrical and Mechanical Engineers Museum

Report of the trustees

For the year ended 31 December 2023

The Museum will create a new display based around the Adam Miller CGC Medal acquisition with a formal opening event and advertisement campaign.

A request has been made to Infinity to conduct a survey and provide a design and costings to install an improved WIFI provision in the galleries and public rooms. This will also enable the Museum to enhance displays with the use of VR and holograms. This survey will be carried out in early 2024.

There is a project underway to have a classroom sized Anderson Shelter installed next to Dig 4 Victory Garden to enhance the Museums education offer. The design had been approved by a structural engineer and passed to a company to manufacture. The project is expected to be completed by second quarter of 2024.

STATEMENT OF RESPONSIBILITIES OF THE TRUSTEES

The trustees are responsible for preparing the trustees' report and the financial statements in accordance with 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 law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and the incoming resources and application of resources, including the net income or expenditure, of the charity for the year. In preparing those financial statements the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the constitution. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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The Corps of Royal Electrical and Mechanical Engineers Museum

Report of the trustees

For the year ended 31 December 2023

Auditors

Godfrey Wilson Limited were re-appointed as auditors to the charity during the year and have expressed their willingness to continue in that capacity.

Approved by the trustees on 23 May 2024 and signed on their behalf by

Stephen Andrews

Maj Gen S M Andrews CBE - Chair

9

Independent auditors' report

To the members of

The Corps of Royal Electrical and Mechanical Engineers Museum

Opinion

We have audited the financial statements of The Corps of Royal Electrical and Mechanical Engineers Museum (the 'charity') for the year ended 31 December 2023 which comprise the statement of financial activities, balance sheet and the related notes to the financial statements, 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).

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 UK, including the FRC’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 trustees are responsible for the 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, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

10

Independent auditors' report

To the members of

The Corps of Royal Electrical and Mechanical Engineers Museum

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of the trustees

As explained more fully in the trustees’ responsibilities statement set out in the trustees’ report, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of 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.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (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 the economic decisions of users taken on the basis of these financial statements.

11

Independent auditors' report

To the members of

The Corps of Royal Electrical and Mechanical Engineers Museum

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 procedures we carried out and the extent to which they are capable of detecting irregularities, including fraud, are detailed below:

(1) We obtained an understanding of the legal and regulatory framework that the charity operates in, and assessed the risk of non-compliance with applicable laws and regulations. Throughout the audit, we remained alert to possible indications of non-compliance.

(2) We reviewed the charity’s policies and procedures in relation to:

(3) We inspected the minutes of trustee meetings.

(4) We enquired about any non-routine communication with regulators and reviewed any reports made to them.

(5) We reviewed the financial statement disclosures and assessed their compliance with applicable laws and regulations.

(6) We performed analytical procedures to identify any unusual or unexpected transactions or balances that may indicate a risk of material fraud or error.

(7) We assessed the risk of fraud through management override of controls and carried out procedures to address this risk. Our procedures included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. Irregularities that arise due to fraud can be even harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

12

Independent auditors' report

To the members of

The Corps of Royal Electrical and Mechanical Engineers Museum

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with section 144 of the Charities Act 2011 and the regulations made under section 154 of that Act. 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's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Godfrey Wilson Limited

Date: 23 May 2024

GODFREY WILSON LIMITED

Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

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The Corps of Royal Electrical and Mechanical Engineers Museum

Statement of financial activities

For the year ended 31 December 2023

Note
Income from:
Donations
3
Charitable activities
4
Other trading activities
Investments
5
Total income
Expenditure on:
Raising funds
Charitable activities
Other expenditure
Total expenditure
7
Net income / (expenditure)
Other recognised gains
Gains/(losses) on revaluation of heritage assets
Net movement in funds
8
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Restricted Unrestricted
£
£
-
419,921
-
96,312
-
1,890
-
10,365
-
528,488
-
7,046
-
481,355
-
-
-
488,401
-
40,087
-
(35,000)
-
5,087
2,325
2,637,888
2,325
2,642,975		 2023
2022
Total
Total
£
£
419,921
475,565
96,312
47,560
1,890
2,475
10,365
10,458
528,488
536,058
7,046
10,396
481,355
417,056
-
781,478
488,401
1,208,930
40,087
(672,872)
(35,000)
-
5,087
(672,872)
2,640,213
3,313,085
2,645,300
2,640,213

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 16 to the accounts.

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The Corps of Royal Electrical and Mechanical Engineers Museum

Balance sheet

As at 31 December 2023

Note
Fixed assets
Tangible assets
11
Heritage assets
12
Current assets
Debtors
13
Cash at bank and in hand
Liabilities
Creditors: amounts falling due within 1 year
14
Net current assets
Net assets
15
Funds
16
Restricted funds
Unrestricted funds
Designated funds
General funds
Total charity funds		 £
287,614
99,382
386,996
(9,871)		 2023
£
295,349
1,972,826
2,268,175
377,125
2,645,300
2,325
467,544
2,175,431
2,645,300		 2022
£
354,562
1,991,476
2,346,038
231,924
71,317
303,241
(9,066)
294,175
2,640,213
2,325
467,334
2,170,554
2,640,213

Approved by the trustees on 23 May 2024 and signed on their behalf by

Stephen Andrews

Maj Gen S M Andrews CBE - Chair

15

The Corps of Royal Electrical and Mechanical Engineers Museum

Statement of cash flows

For the year ended 31 December 2023

Cash used in operating activities:
Net movement in funds
Adjustments for:
Dividends, interest and rents from investments
Depreciation charges
Loss on disposal of tangible fixed assets
Loss on disposal of heritage assets
Donation of heritage assets
Revaluation losses / (gains) on heritage assets
(Increase) / decrease in debtors
Increase / (decrease) in creditors
Net cash provided by operating activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of tangible fixed assets
Purchase of heritage assets
Net cash used in investing activities
Decrease in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2023
£
5,087
(10,365)
64,070
-
5,250
-
35,000
(55,690)
805
44,157
10,365
(4,857)
(21,600)
(16,092)
28,065
71,317
99,382		 2022
£
(672,872)
(10,458)
46,315
27,470
754,008
(33,000)
-
9,654
(1,390)
119,727
10,458
(188,468)
-
(178,010)
(58,283)
129,600
71,317

The charity has not provided an analysis of changes in net debt as it does not have any long term financing arrangements.

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The Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2023

1. Accounting policies

a) Basis of preparation

The Corps of Royal Electrical and Mechanical Engineers Museum 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.

b) Going concern basis of accounting

c) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from the government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

d) Donated services and facilities

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

e) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity: this is normally upon notification of the interest paid or payable by the bank.

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The Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2023

1. Accounting policies (continued)

f) Funds accounting

g) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

h) Allocation of support and governance costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Governance costs are the costs associated with the governance arrangements of the charity, including the costs of complying with constitutional and statutory requirements and any costs associated with the strategic management of the charity’s activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities on the proportion of total costs basis:

2023 2022
Raising funds 1.4% 0.9%
Charitable activities 98.6% 99.1%

i) Tangible fixed assets

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Furniture and equipment

4 to 10 years straight line basis

Items of equipment are capitalised where the purchase price exceeds £2,000.

j) Heritage assets

The charity is the repository of thousands of items, the majority of which have been donated over many years both by individuals and by regimental units that have been closed. Most of the items held are either donated to the Museum or gifted by the Ministry of Defence. Items are recorded at cost when an acquisition has been made by purchase. The valuation of such a diverse and varied collection and the lack in many cases of comparable market values has meant an equally diverse approach in obtaining valuations which are by their nature subjective. It has been necessary to use many sources of valuation expertise. These have included professional valuations as in the case of the small arms collection, guidance from the National Army Museum and recourse to the many web sites, trade magazines, auction houses and professional catalogues covering different aspects of the collection. The trustees have valued the heritage assets where available by reference to these experts, however valuations are often informal and no written valuations are available. The assets are considered to have indeterminate lives and the trustees therefore do not consider it appropriate to charge depreciation.

18

The Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2023

1. Accounting policies (continued)

j) Heritage assets (continued)

k) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

l) Cash at bank and in hand

m) Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

n) Financial instruments

The trust 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 recognised at amortised cost using the effective interest method.

o) Pension costs

The charity's payroll is operated by The REME Charity (the parent charity) which operates a defined contribution pension scheme for the employees. There are no further liabilities other than that already recognised in the SOFA.

p) Accounting estimates and key judgements

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

19

The Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2023

1. Accounting policies (continued)

p) Accounting estimates and key judgements (continued)

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.

Derecognition of assets

The decision to write off heritage assets below £3,000 and tangible fixed assets below £2,000 was made by the trustees in 2022 in order to streamline the management of assets for the museum. As the organisation holds a large number of assets, this policy allows for a simpler register of assets to be maintained, reducing administrative burden and improving efficiency by focusing valuations on high-value heritage assets. In 2022, this change resulted in a loss on disposal of heritage assets of £754,008 and tangible fixed assets of £27,470. From an accounting presentation perspective this is shown a “Loss on Disposal”. The Trustees wish to emphasise, however, that this is a one-time occurrence and no assets have been sold or scrapped. It does not reflect any reduction in the overall value or ownership of the organisation's assets or its financial health.

Depreciation

As described in note 1i to the financial statements, depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life.

Valuation of heritage assets

The charity's heritage assets are stated at their estimated fair value as disclosed in note 1j and note 12.

2. Prior period comparatives: statement of financial activities

Income from:
Donations
Charitable activities
Other trading activities
Investments
Total income
Expenditure on:
Raising funds
Charitable activities
Other expenditure
Total expenditure
Net expenditure and net movement in funds		 Restricted
£
-
-
-
-
-
-
245
-
245
(245)		 £
475,565
47,560
2,475
10,458
536,058
10,396
416,811
781,478
1,208,685
(672,627)
Unrestricted		 2022
Total
£
475,565
47,560
2,475
10,458
536,058
10,396
417,056
781,478
1,208,930
(672,872)

20

The Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2023

3. Income from donations

MoD Grant-In-Aid
Serving officers and soldiers (Gold Card)
Donated services and facilities
The REME Charity
Donated heritage assets
Individuals
Total income from donations*		 Restricted
£
£
-
189,242
-
89,569
-
17,290
-
121,207
-
-
-
2,613
-
419,921
Unrestricted		 2023
Total
£
189,242
89,569
17,290
121,207
-
2,613
419,921		 2022
Total
£
181,754
93,867
17,268
149,292
33,000
384
475,565

All income from donations in the prior year was unrestricted.

Donated staff time 2023
Total
£
17,290		 2022
Total
£
17,268

4. Income from charitable activities

Museum admissions
Children's activities
Research
Grants
Total income from charitable activities		 Restricted
£
£
-
83,565
-
8,009
-
2,258
-
2,480
-
96,312
Unrestricted		 2023
Total
£
83,565
8,009
2,258
2,480
96,312		 2022
Total
£
42,675
2,067
946
1,872
47,560

All income from charitable activities in the prior year was unrestricted.

5. Investment income

Investment income includes interest earned on cash held in deposit accounts and investments by The REME Charity on behalf of the charity. At 31 December 2023 The REME Charity's investments balance, reported in those accounts as 'Aliquot shares', includes a total market value of £334,666 (2022: £306,705) held on behalf of the charity. The charity's share of income generated by the investments was £9,436 (2022: £10,302). Interest earned on cash held in deposit accounts was £929 (2022: £156).

21

The Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2023

6. Government grants

7. Total expenditure

Total expenditure
Staff costs (note 9)
Other staff costs
Displays and exhibits
Subscriptions
Software and website costs
Cleaning
Other office costs
Advertising and marketing
Legal and professional
Depreciation
Sub-total
Allocation of support and governance costs
Total expenditure
Loss on disposal of heritage assets
Materials, maintenance and repairs		 Raising
funds
£
5,940
-
-
-
-
-
-
-
-
-
-
-
5,940
1,106
7,046		 Charitable
activities
£
326,934
1,872
4,424
-
3,282
-
-
-
-
-
5,250
64,070
405,832
75,523
481,355		 Support
and
governance
costs
£
17,290
-
-
6,699
-
4,546
13,324
13,034
15,136
6,600
-
-
76,629
(76,629)
-		 2023
Total
£
350,164
1,872
4,424
6,699
3,282
4,546
13,324
13,034
15,136
6,600
5,250
64,070
488,401
-
488,401

Total governance costs were £6,600 (2022: £5,508).

22

The Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2023

7. Total expenditure (continued) Prior year comparative

Staff costs (note 9)
Other staff costs
Displays and exhibits
Subscriptions
Software and website costs
Cleaning
Other office costs
Advertising and marketing
Legal and professional
Depreciation
Sub-total
Total expenditure
Allocation of support and
governance costs
Materials, maintenance and
repairs
Loss on disposal of heritage
assets
Loss on disposal of fixed
assets		 Raising
funds
£
9,803
-
-
-
-
-
-
-
-
-
-
-
-
9,803
593
10,396		 Charitable
activities
£
£
293,804
-
1,489
-
4,987
-
-
-
2,107
-
-
-
-
-
-
-
-
-
-
-
-
754,008
-
27,470
46,315
-
348,702
781,478
68,354
-
417,056
781,478
Other
expenditure		 Support
and
governance
costs
£
17,268
-
-
7,436
-
3,479
12,312
10,628
12,116
5,708
-
-
-
68,947
(68,947)
-		 2022
Total
£
320,875
1,489
4,987
7,436
2,107
3,479
12,312
10,628
12,116
5,708
754,008
27,470
46,315
1,208,930
-
1,208,930

23

The Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2023

8. Net movement in funds

This is stated after charging:

Depreciation
Loss on disposal of assets
Trustees' remuneration
Trustees' reimbursed expenses
Auditors' remuneration:
Statutory audit (excluding VAT)		 2023
£
64,070
5,250
Nil
Nil
5,500		 2022
£
46,315
781,478
Nil
Nil
4,590

9. Staff costs and numbers

Staff costs were as follows:

Staff salaries recharged by The REME Charity
Donated staff costs
Freelance staff		 2023
£
326,934
17,290
5,940
350,164		 2022
£
293,804
17,268
9,803
320,875

No employee earned more than £60,000 during the current or prior year.

The key management personnel of the charity comprise the Trustees, the CEO and Museum Director.

The total employee remuneration of the key management personnel paid by the charity and recognised as a gift in kind were £47,725 and £Nil respectively (2022: £43,929 and £Nil).

Average head count 2023
No.
13.25		 2022
No.
15.00

10. Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

24

The Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

Notes to the financial statements
For the year ended 31 December 2023
11. Tangible fixed assets
Furniture and equipment
Cost
At 1 January 2023
Additions in year
Disposals
At 31 December 2023
Depreciation
At 1 January 2023
Charge for the year
On disposals
At 31 December 2023
Net book value
At 31 December 2023
At 31 December 2022		 Total
£
796,167
4,857
-
801,024
441,605
64,070
-
505,675
295,349
354,562

25

The Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2023

12. Heritage assets

£
Brought forward at 1 January 2023
7,000
Acquisitions
-
Disposals
-
Revaluations
-
Transfers
-
Carried forward at 31 December 2023
7,000
Documentary
Archive		 Medals
£
56,250
21,600
(5,250)
(35,000)
-
37,600		 Models
£
164,500
-
-
-
-
164,500		 Art
£
106,527
-
-
-
(8,300)
98,227		 Pictorial
Archive
£
1,700
-
-
-
8,300
10,000		 Vehicles
£
1,536,000
-
-
-
-
1,536,000		 Weapons
£
104,500
-
-
-
-
104,500		 Other
£
14,999
-
-
-
-
14,999		 Total
£
1,991,476
21,600
(5,250)
(35,000)
-
1,972,826

All heritage assets are deemed to be measured at valuation. The majority of heritage assets are donated items which are recognised on receipt at valuation. There is insufficient data available to disclose those assets measured at cost however the amount held at cost is a minor proportion of the total heritage assets.

Five year financial summary of heritage asset transactions:

Five year financial summary of heritage asset transactions:
Additions
Purchases
Donations
Total additions
Disposals
Carrying value
Sales proceeds
Revaluation		 2023
£
21,600
-
21,600
(5,250)
-
(35,000)		 2022
£
-
33,000
33,000
754,008
-
-		 2021
£
-
2,370
2,370
42,510
-
(89)		 2020
£
340
2,286
2,626
-
-
(166)		 2019
£
-
2,231
2,231
-
-
716,185

26

The Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2023

12. Heritage assets (continued)

The REME Museum of Technology was established in 1958 to house and preserve the heritage of the Corps of Royal Electrical and Mechanical Engineers. The Museum aims to promote a broader understanding of the functions of the Corps, its interaction with society and its role in providing equipment engineering support to the Army. It also provides an information resource for members of the Corps, researchers, educationalists and general public.

The collection which has been built up over many years reflects the wide range of equipment for which the Corps is responsible including tanks, weapons, helicopters and electronic equipment. The Museum also houses and maintains a comprehensive collection of medals, uniforms, documents and pictorial records covering the many activities of the Corps since its formation in October 1942.

The Museum follows a strict acquisition policy and only accepts items which either relate to the heritage of the Corps or clearly illustrate the changes in engineering and repair techniques associated with equipment responsibilities. Most of the items held are either donated to the Museum or gifted by the Ministry of Defence. Items are recorded at cost when an acquisition has been made by purchase.

The valuation of such a diverse and varied collection and the lack in many cases of comparable market values has meant an equally diverse approach in obtaining valuations. It has been necessary to use many sources of valuation expertise. These have included professional valuations as in the case of the small arms collection, guidance from the National Army Museum and recourse to the many web sites, trade magazines, auction houses and professional catalogues covering different aspects of the collection.

During 2013, the museum director revisited the valuations of the collections with the assistance of specialist publications and experts in the various items. During 2019 the vehicles collection was revalued using the same methods. During 2023 the medals collection was revalued using the same methods.

A full inventory is maintained of all items accessioned into the collection including valuations on the Museum's collection management database. Information provided includes the provenance and acquisition source of each item.

The charity's collections comprise over 130,000 items, this includes accessioned items and items held as E numbers yet to be accessioned. It is not deemed practical or financially viable to revalue every accessioned item within a six-year cycle. The charity has set a valuation limit of £3,000 and only accessioned heritage assets above this limit will be revalued within the rolling cycle, if possible to do so. The charity's staff will endeavour to produce a value for all new acquisitions, including using subject matter experts if required. However, only those value £3,000 or over will be required to show evidence of valuation source on the valuation spreadsheet.

27

The Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2023

13. Debtors

Trade debtors
Accrued income
Prepayments
Due from REME Charity		 2023
£
-
10,660
7,046
269,908
287,614		 2022
£
100
58,159
6,283
167,382
231,924

14. Creditors : amounts due within 1 year

Creditors : amounts due within 1 year
Accruals
Other creditors		 2023
£
9,871
-
9,871		 2022
£
8,581
485
9,066

15. Analysis of net assets between funds

Fixed assets
Current assets
Current liabilities
Net assets at 31 December 2023
Prior year comparative
Fixed assets
Current assets
Current liabilities
Net assets at 31 December 2022		 £
-
2,325
-
2,325
£
-
2,325
-
2,325
Restricted
funds
Restricted
funds		 £
295,349
172,195
-
467,544
£
354,562
112,772
-
467,334
Designated
funds
Designated
funds		 General
funds
£
1,972,826
212,476
(9,871)
2,175,431
General
funds
£
1,991,476
188,144
(9,066)
2,170,554		 Total
funds
£
2,268,175
386,996
(9,871)
2,645,300
Total
funds
£
2,346,038
303,241
(9,066)
2,640,213

28

The Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2023

16. Movements in funds

Restricted funds
British Museum Project
Total restricted funds
Designated funds:
Museum Development
Total designated funds
General funds
Total unrestricted funds
Total funds
Unrestricted funds		 At 1
January
2023
£
2,325
2,325
467,334
467,334
2,170,554
2,637,888
2,640,213		 Income
£
-
-
94,640
94,640
433,848
528,488
528,488		 £
£
-
-
-
-
(94,430)
-
(94,430)
-
(393,971)
(35,000)
(488,401)
(35,000)
(488,401)
(35,000)
Gains /
(losses) on
revaluation of
assets
Expenditure		 £
2,325
At 31
December
2023
2,325
467,544
467,544
2,175,431
2,642,975
2,645,300

Purposes of restricted funds

British Museum Project This fund represents grant funding received from Money & Medals Network to fund training for the Museum Assistant Curator.

Purposes of designated funds

Museum Development

The museum development fund represents income and expenditure the trustees have set aside for the development of the museum over and above the day to day running.

29

The Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2023

16. Movements in funds (continued)
Prior year comparative
Restricted funds
British Museum Project
Total restricted funds
Designated funds:
Museum development
Total designated funds
General funds
Total unrestricted funds
Total funds
Unrestricted funds		 At 1
January
2022
£
2,570
2,570
467,633
467,633
2,842,882
3,310,515
3,313,085		 Income
£
-
-
104,509
104,509
431,549
536,058
536,058		 £
(245)
(245)
(104,808)
(104,808)
(1,103,877)
(1,208,685)
(1,208,930)
Expenditure		 £
2,325
At 31
December
2022
2,325
467,334
467,334
2,170,554
2,637,888
2,640,213

17. Capital commitments

At 31 December 2023, capital expenditure commitments were as follows:

Committed but not provided for in the accounts:
Conspicuous Gallantry Cross medal purchase		 2023
£
150,000		 2022
£
-

At 31 December 2023, the charity had entered into an agreement to complete the purchase of a Conspicuous Gallantry Cross medal. The value of the purchase is funded by awarded grants which will be recognised in line with the purchase of the medal. There were no further capital commitments entered into in the post year end period.

30

The Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2023

18. Related party transactions

The charity's parent entity is The REME Charity (company number 10036700, charity number 1165868), incorporated in the UK. The consolidated accounts are available on the Companies House website. The registered address is the same as that of The REME Museum. The REME Charity is the controlling party and is the sole corporate trustee.

During the year the charity received donations totalling £121,207 from The REME Charity (2022: £149,292). The REME Charity operates payroll and manages transactions through their bank account for the charity. As described in note 6 to the accounts, The REME Charity also holds investments for the charity. The market value of the investments at 31 December 2023 was £334,666 (2022: £306,705), and investment income generated in the year was £9,436 (2022: £10,302). The original transfer of cash for investment is represented in the intercompany balance. At the year end £269,908 was due from The REME Charity (2022: £167,382).

During the year, approximately £17,346 (2022: £8,285) of "free charges" was donated to the REME family in research fees, entrance fees and conference room bookings.

31