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2024-12-31-accounts

Charity no. 272740

Corps of Royal Electrical and Mechanical Engineers Museum Report and Audited Financial Statements 31 December 2024

Corps of Royal Electrical and Mechanical Engineers Museum

Reference and administrative details

For the year ended 31 December 2024

Charity number 272740
Registered office The REME Charity, RHQ REME
and operational The Prince Philip Barracks
address 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:
Brig C P Phillips CBE Chair
Maj Gen S M Andrews CBE Chair - resigned 23 May 2024
Cmdr M Ashton RN
Lt Cl Abigail Brown appointed 23 May 2024
Col M J A Bullard MBE resigned 23 May 2024
Cap H Burns
J Foster appointed 17 January 2024
Col (Retd) R Fram MC
Maj P C D Hembery
Mr T Hirst MSc CEng
Col D G Scott ADC
Maj A Shand CEng
Col M A Simpson QVRM TD VR resigned 23 May 2024
P Tumim
Principal staff Mrs Barbel Harris Chief Executive Officer
Major (Retd) R J Henderson Museum Director
Bankers Holt's Military Banking
The Royal Bank of Scotland Plc
200 Fowler Avenue
Fowler Business Park
Farnborough
GU14 7JP
Solicitors Wilsons Solicitors LLP
Alexandra House
St Johns Street
Salisbury
Wiltshire
SP1 2SB

1

Corps of Royal Electrical and Mechanical Engineers Museum

Reference and administrative details

For the year ended 31 December 2024

Auditors

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

2

Corps of Royal Electrical and Mechanical Engineers Museum

Report of the trustees

For the year ended 31 December 2024

The trustees present their report along with the financial statements of the charity for the year ended 31 December 2024. 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 11 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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Corps of Royal Electrical and Mechanical Engineers Museum

Report of the trustees

For the year ended 31 December 2024

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.

2024 themes and activities

The Museum enjoyed another hugely successful year. The following was achieved:

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Corps of Royal Electrical and Mechanical Engineers Museum

Report of the trustees

For the year ended 31 December 2024

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 £149,500 from The REME Charity was required in 2024. 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 secured the acquisition of Mr Adam Miller’s Conspicuous Gallantry Cross (CGC). Mr Miller and his family attended the unveiling of the new display in April 2024. This is the only CGC awarded to date to a REME soldier. The Museum continues to provide free use of the education suite on most Mondays to the Alzheimer's Support Group. The vast majority of Museum staff attended Emergency First Aid at Work and Manual Handling Training in year.

A total of 1,589 adults and 427 children attended the Museum using the Gold card scheme. A further 830 military personnel visited as part of DSEME induction visits or hosting VIPs at Army HQ or REME RHQ request. Throughout 2024 the Museum continued to provide displays at external events such as the Capel Military Vehicle show where the Museum’s Sherman M32 (Armoured Recovery Vehicle) was on display.

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.

2024 performance

The Museum continues to see an increase in the number of visitors of 18,279 visitors and generated an increase in admissions income to the sum of £99,254. It also generated a further £14,111 from Corporate Hire, Education, Research Fees and Donations. Plus, a monetary value of a further £18,746 in services provided free of charge in support of the Corps.

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Corps of Royal Electrical and Mechanical Engineers Museum

Report of the trustees

For the year ended 31 December 2024

The Museum received 902 (2023: 806) email enquiries. The Archives department dealt with a total of 617 (531) research enquiries completing 549 (504). A total of 127 (188) new items were added to the collections with no reported losses. The Museum’s educational programme delivered formal education workshops to 2,370 (1,702) school pupils accompanied by 367 (166) teachers and teaching assistants.

Performance achieved against fundraising target

The Museum Development Fund raised £84,522 through the Gold Card Scheme and the Museum generated a further £99,254 (2023: £83,565) from admissions, education £8,023 (£8,009) research £1,534 (£2,258), Corporate hire £3,921 (£1,890) and £633 (£305) in donations. The Museum also provided £18,746 (£17,346) worth of free services in support of the Corps, in research, education, free admission and the use of corporate hire facilities. The Museum exceeded the income target of £80,000, but whilst it an achieved a slight increase on the previous year visitor numbers 18,279 (18,059) it was slightly down on the ambitious visitor number target of 19,000. The Museum Development fund exceeded its income targets.

Infrastructure

There were no major infrastructure issues in 2024. The feedback from MOD Lyneham regarding the request to be included on any proposed installation of E- charging points is, as a lodger unit this will not happen at the same time as MOD Lyneham installation. It will be possible at a later date funds permitting. There has been slow progress on the issuing of a formal lease from the DIO Land Management Services (LMS). The Museum is now in possession of a fully signed Internal Business Agreement (IBA) which was required to progress the issuing of a Lease. The Museum still has 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 requested a 50- year lease in the proposed draft lease in line with the previous lease held at Arborfield.

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 restrict 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 £100,000 would be an appropriate planning figure at present to meet this requirement.

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 2.3226% (2023: 2.3541%); 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.

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Corps of Royal Electrical and Mechanical Engineers Museum

Report of the trustees

For the year ended 31 December 2024

Income for the year totalled £727,362 (2023: £528,488) This is split between the Development Fund and the Museum Fund as follows:

Museum Fund income for the year totalled £479,274 (2023: £433,848) and included £197,753 MoD Grant in Aid (2023: £189,242), £99,254 (2023: £83,565) in admissions, £1,534 (2023: £2,258) in research fees, £8,023 (2023: £8,009) in education fees, £3,921 in venue hire (2023: £1,890), £140,500 (2023: £121,207) in grants from the REME Charity and other grants and donations of £57,885 (2023: £67,008), as well as services and facilities donated by MoD of £18,746 (2023: £17,290).

Development Fund income for the year totalled £89,056 (2023: £94,640). 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 £10,989 (2023: £10,365) and grants, donations and other trading income of £633 (2023: £305).

There was also £159,032 grant income restricted to fund the Conspicuous Gallantry Cross medal purchase.

Expenditure

Expenditure for the year totalled £546,890 (2023: £488,401). This is split between the Development Fund, the Museum Fund and the British Museum Project as follows:

Museum Fund expenditure totalled £261,193 (2023: £393,971) and includes staff costs (including salaries and donated staff time) of £394,694 (2023: £344,224), and, in the prior year, a loss on disposal of heritage assets of £5,250. Staff costs are supported by the Grant in Aid donation from MoD of £197,753 (2023: £189,242).

Development Fund expenditure totalled £126,665 (2023: £94,430) and includes depreciation of £62,987 (2023: £64,070), contractor costs of £5,535 (2023: £5,940), and advertising and marketing costs of £20,295 (2023: £12,239).

There was also £9,032 of direct expenditure related to the storage of the Conspicuous Gallantry Cross medal, and a capital spend of £150,000 for the medal purchase.

British Museum Project expenditure totalled £Nil (2023: £Nil) but retains a balance of £2,325.

Investment policy

The Museum Development Fund has an investment aliquot share of 2.3226% in The REME Charity portfolio and follows their investment policy.

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Corps of Royal Electrical and Mechanical Engineers Museum

Report of the trustees

For the year ended 31 December 2024

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 provide free guest wi-fi access in all areas of the Museum. This is expected to be fully operational in early 2025.

With the provision of the wi-fi the Museum will look to provide enhanced displays in the galleries with QR codes that will provide detailed information, pictures and videos about the displays and items on view. Longer term there are plans in place to provide Artificial Reality (AR) within the galleries.

We will be introducing ‘Lights up, and Sounds down’ days in 2025. These ‘Lights Up, Sounds Down’ days will reduce sensory input for individuals who would prefer a quieter experience. These sessions are primarily for, though not limited to, anyone who has sensory processing disorder; autism; social, emotional or mental health needs; dementia, post-traumatic stress disorder (PTSD) or any other sensory needs.

A temporary exhibition was launched in Jan 25 entitled Corps Connections. In the years following REME’s formation in 1942, equivalent ‘sister’ corps were set up across the world. This exhibition celebrates the uniqueness of these Electrical and Mechanical Engineering (EME) corps.

The Museum’s initial aspiration to build a classroom sized Anderson Shelter installed next to the Dig 4 Victory Garden was put on hold due to excessive quotes. The Museum will continue to explore options as this is still a project the Museum is keen to provide.

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:

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Corps of Royal Electrical and Mechanical Engineers Museum

Report of the trustees

For the year ended 31 December 2024

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.

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 14 May 2025 and signed on their behalf by

Brigadier Clare Phillips CBE - Chair

9

Independent auditors' report

To the trustees of

Corps of Royal Electrical and Mechanical Engineers Museum

Opinion

We have audited the financial statements of Corps of Royal Electrical and Mechanical Engineers Museum (the 'charity') for the year ended 31 December 2024 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 the provisions available for small entities, in the circumstances set out in note 7 to the financial statements, 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. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

10

Independent auditors' report

To the trustees of

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

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require 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

We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

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:

11

Independent auditors' report

To the trustees of

Corps of Royal Electrical and Mechanical Engineers Museum

(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 trustees of

Corps of Royal Electrical and Mechanical Engineers Museum

Use of our report

This report is made solely to the charityʼs 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 charityʼs trustees those matters we are required to state to them in an auditorʼs 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 the charityʼs trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Godfrey Wilson Limited

Date: 14 May 2025

GODFREY WILSON LIMITED

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

Godfrey Wilson Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

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Corps of Royal Electrical and Mechanical Engineers Museum

Statement of financial activities

For the year ended 31 December 2024

Note
Income from:
Donations
2
Charitable activities
3
Other trading activities
Investments
4
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
6
Net income
Transfers between funds
Other recognised gains
Gains/(losses) on revaluation of heritage assets
Net movement in funds
7
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Restricted Unrestricted
£
£
-
442,101
159,032
111,319
-
3,921
-
10,989
159,032
568,330
-
6,375
9,032
531,483
9,032
537,858
150,000
30,472
(150,000)
150,000
-
21,500
-
201,972
2,325
2,642,975
2,325
2,844,947		 2024
Total
£
442,101
270,351
3,921
10,989
727,362
6,375
540,515
546,890
180,472
-
21,500
201,972
2,645,300
2,847,272		 2023
Total
£
419,921
96,312
1,890
10,365
528,488
7,046
481,355
488,401
40,087
-
(35,000)
5,087
2,640,213
2,645,300

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 15 to the accounts.

All income and expenditure in the prior year was unrestricted.

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Corps of Royal Electrical and Mechanical Engineers Museum

Balance sheet

As at 31 December 2024

Note
Fixed assets
Tangible assets
10
Heritage assets
11
Current assets
Debtors
12
Cash at bank and in hand
Liabilities
Creditors: amounts falling due within 1 year
13
Net current assets
Net assets
14
Funds
15
Restricted funds
Unrestricted funds
Designated funds
General funds
Total charity funds		 £
358,454
110,327
468,781
(14,982)		 2024
£
249,147
2,144,326
2,393,473
453,799
2,847,272
2,325
429,935
2,415,012
2,847,272		 2023
£
295,349
1,972,826
2,268,175
287,614
99,382
386,996
(9,871)
377,125
2,645,300
2,325
467,544
2,175,431
2,645,300

Approved by the trustees on 14 May 2025 and signed on their behalf by

Brigadier Clare Phillips CBE - Chair

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Corps of Royal Electrical and Mechanical Engineers Museum

Statement of cash flows

For the year ended 31 December 2024

Cash used in operating activities:
Net movement in funds
Adjustments for:
Dividends, interest and rents from investments
Depreciation charges
Loss on disposal of heritage assets
Revaluation (gains) / losses on heritage assets
Increase in debtors
Increase 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
Increase 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		 2024
£
201,972
(10,989)
62,987
-
(21,500)
(70,840)
5,111
166,741
10,989
(16,785)
(150,000)
(155,796)
10,945
99,382
110,327		 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

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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Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2024

1. Accounting policies

a) Basis of preparation

Corps of Royal Electrical and Mechanical Engineers Museum is an unincorporated charity registered in England and Wales. The registered office address is:

The REME Charity, RHQ REME The Prince Philip Barracks MoD Lyneham Lyneham Chippenham SN15 4XX

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities in preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

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

The accounts have been prepared on the assumption that the charity is able to continue as a going concern, which the trustees consider appropriate having regard to the current level of unrestricted reserves. There are no material uncertainties about the charity's ability to continue as a going concern.

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

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item, is probable and the economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised.

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.

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Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2024

1. Accounting policies (continued)

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.

f) Funds accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the charity.

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: 2024 2023 Raising funds 1.2% 1.4% Charitable activities 98.8% 98.6%

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.

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Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2024

1. Accounting policies (continued)

j) Heritage assets

The charity's collections comprise over 130,000 items. It is not deemed practical or financially viable to revalue every 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 valued £3,000 or over will be capitalised as heritage assets.

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

Cash at bank and cash 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.

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.

19

Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2024

1. Accounting policies (continued)

p) Accounting estimates and key judgements

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.

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

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 11.

2. Income from donations

Restricted
£
£
MoD Grant-In-Aid
-
197,753
Serving officers and soldiers (Gold Card)
-
84,522
Donated services and facilities
-
18,746
The REME Charity
-
140,500
Individuals
-
580
Total income from donations
-
442,101
All income from donations in the prior year was unrestricted.
 Donated services and facilities consists of:
Donated staff time
Unrestricted		 2024
Total
£
197,753
84,522
18,746
140,500
580
442,101
2024
Total
£
18,746		 2023
Total
£
189,242
89,569
17,290
121,207
2,613
419,921
2023
Total
£
17,290

20

Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2024

3. Income from charitable activities

Grants
Museum admissions
Children's activities
Research
Total income from charitable activities		 Restricted
£
£
159,032
2,508
-
99,254
-
8,023
-
1,534
159,032
111,319
Unrestricted		 2024
2023
Total
Total
£
£
161,540
2,480
99,254
83,565
8,023
8,009
1,534
2,258
270,351
96,312

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

4. 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 2024 The REME Charity's investments balance, reported in those accounts as 'Aliquot shares', includes a total market value of £361,639 (2023: £331,552) held on behalf of the charity. The charity's share of income generated by the investments was £9,761 (2023: £9,436). Interest earned on cash held in deposit accounts was £1,228 (2023: £929).

5. Government grants

The charity receives government grants, defined as funding from the Ministry of Defence, the National Lottery Heritage Fund, and Arts Council England (via the Victoria and Albert Museum) to fund charitable activities. The total value of such grants in the period ending 31 December 2024 was £356,785 (2023: £189,242). There are no unfulfilled conditions or contingencies attaching to these grants in the current or prior year.

21

Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2024

6. Total expenditure

Total expenditure
Staff costs (note 8)
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
Materials, maintenance and repairs		 Raising
funds
£
5,535
-
-
-
-
-
-
-
-
-
-
5,535
840
6,375		 Charitable
activities
£
375,948
4,596
16,552
-
9,186
-
-
-
-
-
62,987
469,269
71,246
540,515		 Support
and
governance
costs
£
18,746
-
-
6,539
-
969
911
14,685
23,276
6,960
-
72,086
(72,086)
-		 2024
Total
£
400,229
4,596
16,552
6,539
9,186
969
911
14,685
23,276
6,960
62,987
546,890
-
546,890

Total governance costs were £6,960 (2023: £6,600).

22

Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2024

6. Total expenditure (continued) Prior year comparative

Staff costs (note 8)
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
Materials, maintenance and repairs
Loss on disposal of heritage assets		 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

23

Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2024

7. 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)		 2024
£
62,987
-
Nil
Nil
5,800		 2023
£
64,070
5,250
Nil
Nil
5,500

In common with other charities of our size and nature we use our auditors to assist with the preparation of the financial statements.

8. Staff costs and numbers

Staff costs were as follows:

Staff salaries recharged by The REME Charity
Donated staff costs
Freelance staff		 2024
2023
£
£
375,948
326,934
18,746
17,290
5,535
5,940
400,229
350,164

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 £49,701 and £Nil respectively (2023: £47,725 and £Nil).

Average head count 2024
No.
15.83		 2023
No.
13.25

9. Taxation

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

24

Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

Notes to the financial statements
For the year ended 31 December 2024
10. Tangible fixed assets
Furniture and equipment
Cost
At 1 January 2024
Additions in year
Disposals
At 31 December 2024
Depreciation
At 1 January 2024
Charge for the year
On disposals
At 31 December 2024
Net book value
At 31 December 2024
At 31 December 2023		 Total
£
801,024
16,785
(48,015)
769,794
505,675
62,987
(48,015)
520,647
249,147
295,349

25

Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2024

11. Heritage assets

£
Brought forward at 1 January 2024
7,000
Acquisitions
-
Revaluations
-
Carried forward at 31 December 2024
7,000
Documentary
Archive		 Medals
£
37,600
150,000
-
187,600		 Models
£
164,500
-
-
164,500		 Art
£
98,227
-
-
98,227		 Pictorial
Archive
£
10,000
-
-
10,000		 Vehicles
£
1,536,000
-
-
1,536,000		 Weapons
£
104,500
-
21,500
126,000		 Other
£
14,999
-
-
14,999		 Total
£
1,972,826
150,000
21,500
2,144,326

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		 2024
£
150,000
-
150,000
-
-
21,500		 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)

26

Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2024

11. 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

Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2024

12. Debtors

Accrued income
Prepayments
Due from REME Charity		 2024
£
9,982
10,667
337,805
358,454		 2023
£
10,660
7,046
269,908
287,614

13. Creditors : amounts due within 1 year

Creditors : amounts due within 1 year
Accruals
Other creditors		 2024
£
11,013
3,969
14,982		 2023
£
9,871
-
9,871

14. Analysis of net assets between funds

Fixed assets
Current assets
Current liabilities
Net assets at 31 December 2024
Prior year comparative
Fixed assets
Current assets
Current liabilities
Net assets at 31 December 2023		 £
-
2,325
-
2,325
£
-
2,325
-
2,325
Restricted
funds
Restricted
funds		 £
249,147
180,788
-
429,935
£
295,349
172,195
-
467,544
Designated
funds
Designated
funds		 General
funds
£
2,144,326
285,668
(14,982)
2,415,012
General
funds
£
1,972,826
212,476
(9,871)
2,175,431		 Total
funds
£
2,393,473
468,781
(14,982)
2,847,272
Total
funds
£
2,268,175
386,996
(9,871)
2,645,300

28

Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2024

15. Movements in funds

Restricted funds
British Museum Project
Conspicuous Gallantry Cross
Total restricted funds
Designated funds:
Museum Development
Total designated funds
General funds
Total unrestricted funds
Total funds
Unrestricted funds		 At 1
January
2024
£
2,325
-
2,325
467,544
467,544
2,175,431
2,642,975
2,645,300		 Income
£
-
159,032
159,032
89,056
89,056
479,274
568,330
727,362		 £
£
-
-
(9,032)
(150,000)
(9,032)
(150,000)
(126,665)
-
(126,665)
-
(411,193)
171,500
(537,858)
171,500
(546,890)
21,500
Gains on
revaluation of
assets/
transfers
Expenditure		 £
2,325
-
At 31
December
2024
2,325
429,935
429,935
2,415,012
2,844,947
2,847,272

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.

Conspicuous Gallantry Cross

Acquisition and display of a group of military medals awarded to Warrant Officer Second Class (WO2) Adam Miller, a R.E.M.E soldier and recovery mechanic who served with the British Army from 1998 to 2023.

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.

Transfers between funds

Transfers between funds represent general funds released on the purchase of an heritage asset with restricted funding. At the point of purchase, all restrictions were extinguished.

29

Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2024

15. 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
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)
(488,401)
(488,401)
Expenditure		 (Losses) on
revaluation
of assets
-
-
-
-
(35,000)
(35,000)
(35,000)		 At 31
December
2023
£
2,325
2,325
467,544
467,544
2,175,431
2,642,975
2,645,300

16. 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		 2024
£
-		 2023
£
150,000

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 prior year, and none in the current year.

30

Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2024

17. 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 £149,462 from The REME Charity (2023: £121,207). The REME Charity operates payroll and manages transactions through their bank account for the charity. As described in note 4 to the accounts, The REME Charity also holds investments for the charity. The market value of the investments at 31 December 2024 was £361,639 (2023: £331,552), and investment income generated in the year was £9,761 (2023: £9,436). The original transfer of cash for investment is represented in the intercompany balance. At the year end £337,805 was due from The REME Charity (2023: £269,908).

During the year, approximately £18,746 (2023: £17,346) of "free charges" was donated to the REME family in research fees, entrance fees and conference room bookings.

31