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2025-12-31-accounts

Charity no. 272740

Corps of Royal Electrical and Mechanical Engineers Museum Report and Audited Financial Statements 31 December 2025

Corps of Royal Electrical and Mechanical Engineers Museum

Reference and administrative details

For theyear ended 31 December 2025 For theyear ended 31 December 2025
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
Cdr M Ashton RN
Lt Col A Brown
Capt H Burns
J Foster
Col (Retd) R Fram MC
Maj P C D Hembery
Mr T Hirst MSc CEng
Col D G Scott ADC (retired 15 April 2025)
Maj A Shand CEng
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
Auditors Godfrey Wilson Limited
Chartered accountants and statutory auditors
5th Floor Mariner House
62 Prince Street
Bristol
BS1 4QD

1

Corps of Royal Electrical and Mechanical Engineers Museum

Report of the trustees

For the year ended 31 December 2025

The trustees present their report along with the financial statements of the charity for the year ended 31 December 2025. 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 2011, 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 10 trustees led by a Chair. 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.

2

Corps of Royal Electrical and Mechanical Engineers Museum

Report of the trustees

For the year ended 31 December 2025

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.

2025 themes and activities

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

3

Corps of Royal Electrical and Mechanical Engineers Museum

Report of the trustees

For the year ended 31 December 2025

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 £139,850 from The REME Charity was required in 2025. 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

A total of 1,216 adults and 387 children attended the Museum using the Gold card scheme. A further 964 military personnel visited as part of DSEME induction visits or hosting VIPs at Army HQ or REME RHQ request.

The Museum continues to provide free use of the education suite on most Mondays to the Beyond Dementia.

Throughout 2025 the Museum continued to provide displays at external events such as Freedom of Wokingham Parade and the REME Association Weekend. The Museum’s Conqueror (Armoured Recovery Vehicle) was on display at the Capel Military Vehicle show.

4

Corps of Royal Electrical and Mechanical Engineers Museum

Report of the trustees

For the year ended 31 December 2025

The vast majority of Museum staff attended Emergency First Aid at Work and Manual Handling Training again this year.

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.

2025 performance

The Museum continues to see an increase in the number of visitors and generated an increase in admissions income to the sum of £99,939 (2024: £99,245). It also generated a further £5,047 from Corporate Hire, Education, Research Fees and Traders fee. Plus, a monetary value of a further £18,746 in services provided free of charge in support of the Corps.

The Museum received 1,275 email enquiries. The Archives department dealt with a total of 582 (2024: 617) research enquiries completing 506 (2024: 549). A total of 127 (2024: 127) new items were added to the collections with no reported losses. The Museum’s educational programme delivered formal education workshops to 1,140 (2024: 2,370) school pupils accompanied by 332 (2024: 367) teachers and teaching assistants. The decrease in the number of pupils being due to the fact that in 2024 the Museum Education officer provided a stand at the Wiltshire Council STEM Day attended by 1,200 school pupils. The Museum Education Officer will be attending again in 2026.

Performance achieved against fundraising target

The Museum Development Fund raised £84,249 through the Gold Card Scheme and the Museum generated a further £99,939 (2024: £99,254) from admissions, education £6,228 (2024: £8,023) research £1,339 (2024: £1,534), venue hire £5,047 (2024: £3,921). The Museum also provided £18,746 (2024: £18,746) 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 admission income target of £95,750, and slightly exceeded the visitor numbers target of 19,000 with visitor numbers of 19,638. The Museum Development fund exceeded its income target of £80,300.

Infrastructure

There were no major infrastructure issues in 2025. The Museum has made significant progress on obtaining a 50-year Lease. A hardcopy of the Lease for signing by both the REME Charity and DIO was signed in April 2026.

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 £50k would be an appropriate planning figure at present to meet this requirement.

5

Corps of Royal Electrical and Mechanical Engineers Museum

Report of the trustees

For the year ended 31 December 2025

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% (2024: 2.3226%); 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 £567,104 (2024: £727,362) This is split between the Development Fund and the Museum Fund as follows:

Museum Fund income for the year totalled £476,172 (2024: £479,274) and included £205,314 MoD Grant in Aid (2024: £197,753), £99,939 (2024: £99,254) in admissions, £1,339 (2024: £1,534) in research fees, £6,228 (2024: £8,023) in education fees, £5,047 in venue hire (2024: £3,921), £131,162 (2024: £140,500) in grants from the REME Charity and other grants and donations of £4,545 (2024: £2,508), as well as services and facilities donated by MoD of £18,746 (2024: £18,746).

Development Fund income for the year totalled £90,932 (2024: £89,056), chiefly comprising the Museum Gold Card Scheme. This is a free admission membership scheme 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 £906 (2024: £10,989) and grants, donations and other trading income of £5,486 (2024: £633).

In the prior year, there was also £159,032 grant income restricted to fund the Conspicuous Gallantry Cross medal purchase.

Expenditure

Expenditure for the year totalled £589,777 (2024: £546,890). This is split between the Development Fund, the Museum Fund and the British Museum Project as follows:

Museum Fund expenditure totalled £453,366 (2024: £411,193) and includes staff costs (including salaries and donated staff time) of £437,367 (2024: £400,229). Staff costs are supported by the Grant in Aid donation from MoD of £205,314 (2024: £197,753).

Development Fund expenditure totalled £136,411 (2024: £126,665) and includes depreciation of £61,378 (2024: £62,987), contractor costs of £5,535 (2024: £5,535), and advertising and marketing costs of £17,092 (2024: £20,295).

In the prior year 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 (2024: £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.

6

Corps of Royal Electrical and Mechanical Engineers Museum

Report of the trustees

For the year ended 31 December 2025

PLANS FOR FUTURE PERIODS

Future aims, objectives and planned outputs

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

A temporary exhibition was launched in Jan 26 entitled With Spanners Descending- REME’s Airbourne War, the story of REME’s support for Britain’s airborne troops during World War Two.

There are plans to refresh some of case objects on display to provide new exhibitions to see in the galleries.

The Museum’s had to dismantle the wildlife garden due to the growth of poisonous Hemlock. The Museum is planning to provide an area with a solid base (MOT type 1) and add raised planters to reestablish the wildlife gardens.

A programme of decorating the internal corridor walls followed by the galleries is in place to maintain the visual standards of the Museum.

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.

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 2025

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 26 May 2026 and signed on their behalf by

Brigadier Clare Phillips CBE - Chair

8

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 2025 which comprise the statement of financial activities, balance sheet, statement of cashflows, 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:

give a true and fair view of the state of the charity's affairs as at 31 December 2025 and of its incoming resources and application of resources, for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Charities Act 2011.

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 8 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.

9

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:

10

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.

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.

11

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

Date: 26 May 2026

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.

12

Corps of Royal Electrical and Mechanical Engineers Museum

Statement of financial activities

For the year ended 31 December 2025

Note
Income from:
Donations
3
Charitable activities
4
Other trading activities
Investments
5
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
7
Net income / (expenditure)
Transfers between funds
Net movement in funds
8
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Restricted Unrestricted
£
£
-
439,471
-
112,051
-
5,047
-
10,535
-
567,104
-
6,305
-
583,472
-
589,777
-
(22,673)
-
-
-
(22,673)
2,325
2,067,720
2,325
2,045,047		 2025
Total
£
439,471
112,051
5,047
10,535
567,104
6,305
583,472
589,777
(22,673)
-
(22,673)
2,070,045
2,047,372		 Restated
2024
Total
£
442,101
270,351
3,921
10,989
727,362
6,375
540,515
546,890
180,472
-
180,472
1,889,573
2,070,045

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.

The prior period statement of financial activities has been restated due to a change in accounting policy as described in note 18 to the financial statements.

13

Corps of Royal Electrical and Mechanical Engineers Museum

Balance sheet

As at 31 December 2025

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		 £
385,524
62,488
448,012
(15,850)		 2025
£
248,111
1,367,099
1,615,210
432,162
2,047,372
2,325
384,456
1,660,591
2,047,372		 Restated
2024
£
249,147
1,367,099
1,616,246
358,454
110,327
468,781
(14,982)
453,799
2,070,045
2,325
429,935
1,637,785
2,070,045

Approved by the trustees on 26 May 2026 and signed on their behalf by

Brigadier Clare Phillips CBE - Chair

14

Corps of Royal Electrical and Mechanical Engineers Museum

Statement of cash flows

For the year ended 31 December 2025

Cash flows from operating activities:
Net movement in funds
Adjustments for:
Dividends, interest and rents from investments
Depreciation charges
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
(Decrease) / 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		 2025
£
(22,673)
(10,535)
61,378
(27,070)
868
1,968
10,535
(60,342)
-
(49,807)
(47,839)
110,327
62,488		 Restated
2024
£
180,472
(10,989)
62,987
(70,840)
5,111
166,741
10,989
(16,785)
(150,000)
(155,796)
10,945
99,382
110,327

Analysis of changes in net debt

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

15

Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2025

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 2025

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:

2025 2024
Raising funds 1.1% 1.2%
Charitable activities 98.9% 98.8%

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.

17

Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2025

1. Accounting policies (continued)

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. The assets are considered to have indeterminate lives and the trustees therefore do not consider it appropriate to charge depreciation. Heritage assets are capitalised where the value on acquisition is £3,000 or above, and are held at historic cost.

Change in accounting policy

During the year, the trustees reviewed the appropriateness of the measurement basis for heritage assets and concluded that a cost-based approach provides more reliable and relevant information to the users of the financial statements.

Given the scale and diversity of the collection (in excess of 130,000 items), obtaining regular, comprehensive valuations would involve disproportionate cost and effort. In addition, many items are unique and lack active markets, resulting in valuations that are inherently subjective and of limited reliability. The assets are held for their service potential in furtherance of the charity’s objectives and are not held for sale; accordingly, current value information is of limited relevance to users of the financial statements.

The change has therefore been made in accordance with FRS 102 Section 10 on the basis that it results in more reliable and relevant information. The change in policy has been applied retrospectively; the carrying value of heritage assets at the date of transition to the current accounting framework (y/e 31 December 2014) has been treated as deemed cost, with later additions included at purchase price or fair value at the date of acquisition.

See note 18 to the financial statements for further details of the impact of the change in policy.

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.

18

Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2025

1. Accounting policies (continued)

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.

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.

2. Prior period comparatives: statement of financial activities (restated)

Income from:
Donations
Charitable activities
Other trading activities
Investments
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Net income
Transfers between funds
Net movement in funds		 Restricted
£
-
159,032
-
-
159,032
-
9,032
9,032
150,000
(150,000)
-		 £
442,101
111,319
3,921
10,989
568,330
6,375
531,483
537,858
30,472
150,000
180,472
Unrestricted		 2024
Total
£
442,101
270,351
3,921
10,989
727,362
6,375
540,515
546,890
180,472
-
180,472

19

Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2025
3.
Income from donations
2025
Total
£
MoD Grant-In-Aid
205,314
Serving officers and soldiers (Gold Card)
84,249
Donated services and facilities
18,746
The REME Charity
131,162
Individuals
-
Total income from donations
439,471
All income from donations in the current and prior year was unrestricted.
 Donated services and facilities consists of:
2025
Total
£
Donated staff time
18,746		 2024
Total
£
197,753
84,522
18,746
140,500
580
442,101
2024
Total
£
18,746

20

Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2025

4. Income from charitable activities

Grants
Museum admissions
Children's activities
Research
Total income from charitable activities
Prior year comparative
Grants
Museum admissions
Children's activities
Research
Total income from charitable activities		 Restricted
£
-
-
-
-
-
Restricted
£
159,032
-
-
-
159,032		 £
4,545
99,939
6,228
1,339
112,051
£
2,508
99,254
8,023
1,534
111,319
Unrestricted
Unrestricted		 2025
Total
£
4,545
99,939
6,228
1,339
112,051
2024
Total
£
161,540
99,254
8,023
1,534
270,351

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 2025 The REME Charity's investments balance, reported in those accounts as 'Aliquot shares', includes a total market value of £371,421 (2024: £361,639) held on behalf of the charity. The charity's share of income generated by the investments was £9,629 (2024: £9,761). Interest earned on cash held in deposit accounts was £906 (2024: £1,228).

6. 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 2025 was £346,105 (2024: £356,785). 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 2025

7. Total expenditure

Staff costs (note 9)
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
770
6,305		 Charitable
activities
£
413,086
10,694
-
15,730
-
-
11,357
-
-
61,378
512,245
71,227
583,472		 Support
and
governance
costs
£
18,746
-
6,252
-
15,477
442
7,938
17,092
6,050
-
71,997
(71,997)
-		 2025
Total
£
437,367
10,694
6,252
15,730
15,477
442
19,295
17,092
6,050
61,378
589,777
-
589,777

Total governance costs were £7,260 (2024: £6,960).

22

Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2025

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
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

23

Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2025

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)		 2025
£
61,378
-
Nil
Nil
6,050		 2024
£
62,987
-
Nil
Nil
5,800

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

9. Staff costs and numbers

Staff costs were as follows:

Staff salaries recharged by The REME Charity
Donated staff costs
Freelance staff		 2025
£
413,086
18,746
5,535
437,367		 2024
£
375,948
18,746
5,535
400,229

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 parent charity) was £51,747 (2024: £49,701).

Average head count 2025
No.
13.67		 2024
No.
15.83

10. 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

For the year ended 31 December 2025
11. Tangible fixed assets
Furniture and equipment
Cost
At 1 January 2025
Additions in year
Disposals
At 31 December 2025
Depreciation
At 1 January 2025
Charge for the year
On disposals
At 31 December 2025
Net book value
At 31 December 2025
At 31 December 2024		 Total
£
769,794
60,342
-
830,136
520,647
61,378
-
582,025
248,111
249,147

25

ZS V CTrJ (O E7J (n 7J J O <tLO

Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2025

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.

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. Items are held at historic cost and capitalised where the cost or deemed cost on acquisition is at least £3,000.

27

Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2025

13. Debtors

Accrued income
Prepayments
Due from REME Charity		 2025
£
11,847
9,762
363,915
385,524		 2024
£
9,982
10,667
337,805
358,454

14. Creditors : amounts due within 1 year

Creditors : amounts due within 1 year
Accruals
Other creditors		 2025
£
15,789
61
15,850		 2024
£
11,013
3,969
14,982

15. Analysis of net assets between funds

Fixed assets
Current assets
Current liabilities
Net assets at 31 December 2025
Prior year comparative (restated)
Fixed assets
Current assets
Current liabilities
Net assets at 31 December 2024		 £
-
2,325
-
2,325
£
-
2,325
-
2,325
Restricted
funds
Restricted
funds		 £
248,111
136,345
-
384,456
£
249,147
180,788
-
429,935
Designated
funds
Designated
funds		 General
funds
£
1,367,099
309,342
(15,850)
1,660,591
General
funds
£
1,367,099
285,668
(14,982)
1,637,785		 Total
funds
£
1,615,210
448,012
(15,850)
2,047,372
Total
funds
£
1,616,246
468,781
(14,982)
2,070,045

28

Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2025

16. Movements in funds

Movements in funds
Restricted funds
British Museum Project		 At 1
January
2025
Income
£
£
2,325
-		 £
-
Expenditure		 £
2,325
At 31
December
2025
Total restricted funds 2,325
-		 - 2,325
Designated funds:
Museum Development
Unrestricted funds		 429,935
90,932		 (136,411) 384,456
Total designated funds 429,935
90,932		 (136,411) 384,456
General funds 1,637,785
476,172		 (453,366) 1,660,591
Total unrestricted funds 2,067,720
567,104		 (589,777) 2,045,047
Total funds 2,070,045
567,104		 (589,777) 2,047,372
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.

Transfers between funds

Transfers between funds in 2024 represented 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 2025

16. Movements in funds (continued) Prior year comparative (restated)

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
1,419,704
1,887,248
1,889,573		 Income
£
-
159,032
159,032
89,056
89,056
479,274
568,330
727,362		 £
-
(9,032)
(9,032)
(126,665)
(126,665)
(411,193)
(537,858)
(546,890)
Expenditure		 £
-
(150,000)
(150,000)
-
-
150,000
150,000
-
Transfers		 At 31
December
2024
£
2,325
-
2,325
429,935
429,935
1,637,785
2,067,720
2,070,045

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 £139,850 from The REME Charity (2024: £149,462 ). The REME Charity operates payroll and manages transactions through their bank account for the charity. As described in note 5 to the accounts, The REME Charity also holds investments for the charity. The market value of the investments at 31 December 2025 was £371,418 (2024: £361,639), and investment income generated in the year was £9,779 (2024: £9,761). The original transfer of cash for investment is represented in the intercompany balance. At the year end £363,915 was due from The REME Charity (2024: £337,805).

During the year, approximately £18,746 (2024: £18,746) of "free charges" was donated to the REME family in research fees, entrance fees and conference room bookings.

30

Corps of Royal Electrical and Mechanical Engineers Museum

Notes to the financial statements

For the year ended 31 December 2025

18. Prior period restatement

Prior period comparatives have been restated to account for the following change in accounting policy: heritage assets previously held under the revaluation model have been restated to be held under the historic cost model. This impacts the value of heritage assets at 31 December 2024, the value of funds brought forward at 1 January 2024 and carried forward at 31 December 2024, and gains / losses recognised in the year ended 31 December 2024.

Funds
As originally stated at 1 January 2024
Adjustment for change in accounting policy
As restated at 1 January 2024
As originally stated at 31 December 2024
Adjustment for change in accounting policy
As restated at 31 December 2024
Gains / (losses) on revaluation of heritage assets
As originally stated
Adjustment for change in accounting policy
As restated for the year ended 31 December 2024		 General
funds
£
2,175,431
(755,727)
1,419,704
2,415,012
(777,227)
1,637,785		 Total
funds
£
2,645,300
(755,727)
1,889,573
2,847,272
(777,227)
2,070,045
2024
£
21,500
(21,500)
-

31

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