MASONIC SAMARITAN FUND ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Charity Number: 1130424 Company Number: 6876310
MASONIC SAMARITAN FUND Contents Paga Trustees, Annual Report Strategic Report Statement of Trustees Responsibilities 13 Auditorfs Report 14 Consolidated Statement of Financial Activities 18 Balance Sheets 19 Consolidated Statement of Cash Flows 20 Notes to the Financial Statements 21 Page 2 of 30
MASONIC SAMARITAN FUND TRUSTEES, ANNUAL REPORT The Trustees are pleased to submit their report for the year ended 31st March 2024 together with th8 consolidated accounts for the Charity and its subsidiary. This report includes a directors, report as required by Section 415 of The Companies Act 2006 and a strategic report as required by The Companies Act 2006 (strategic Report and Directors, Report) Regulations 2013. Reference and Administrative Information Name and Registered Office The name of the charity is the Masonic Samaritan Fund (the "Chariv) and it has its registered office at 60 Great Queen Street, London, WC2B 5AZ. Trustaes The Trustees who served during the year were: The Masonic Charitable Foundation ("MCF") (Corporate Trustee, Registered Charity No. 1164703, Company Number 09751836) James M. Long, TD (Appointed 14¢h March 2024) Sir Paul Williams, OBE, KStJ, DL (Resigned 141h March 2024) The trustees of the MCF who served during the year were.. John Boyington, CBE (Resigned 31st July 2023) Sinead Brophy (Resigned 31st July 2023) Simon Duckworth, OBE, DL (Resigned 31st July 2023) Clive Emerson (Appointed Treasurer 1 $1 August 2023) Dr Simon Fellennan Edward Goodchild (Appointed 1 sl August 2023) Alan Graham, MBE Antony Harvey (Resigned 318t July 2023) Christopher Head Michael Heenan (Treasurer) (Resigned 31 St July 2023) James Long, TD (President) (Appointed Chairman 151 January 2024) Charlotte Miller (Appointed GO-OPtee 1°, August 2023) Stephen Robinson Marie Shenton (Appointed 1st August 2023) David Southem Bruce Walker Andrew Wauchope (Resigned 31st July 2023) Sir Paul Williams, OBE, KStJ, DL (Deputy President and Chairman to 3131 Dernber 2023) Howard Wilson Page 3 of 30
MASONIC SAMARITAN FUND TRUSTEES, ANNUAL REPORT Executive The Executive during the year to 31st March 2024 were.. Les Hutchinson, Chief Executive Charles Angus, Group Finance Director Brenda Nurse, Company Secretary Auditor Knox Cropper LLP, Chartered Accountsnts, 65 Leadenhall Street, London, EC3A 2AD Bankers Barclays Bank Plc, Level 28, 1 Churchill Place, Canary Wharf, London, E14 5HP National Westminster Bank Plc, Bloomsbury Parr's Branch, 214 High Holborn, London, WC1V 7BX Investment Advisors Asset Risk Consultants Limited, 7 New Street, St. Peter Port, Guemsey, GY12PF Investment Managers Royal London Asset Management Ltd., 55 Gracechurch Street, London, EC3V OUF Solicitors stone King LLP, Boundary House, 91 Charterhouse Street, London, EC1 M 6HR Page 4 of 30
MASONIC SAMARITAN FUND TRUSTEES, ANNUAL REPORT Structure, Governance and Management Organisation The Charity is constituted as a company limited by guarantee and its governing document is its articles of association. It was incorporated on 14th April 2009 for the purpose of taking over the charitable work of th8 unincorporated trust of the same name, regISted charity number 1001298. On 1 St October 2009, the assets and undertaking of the unincorporated trust were transferred to the Charity. The unincorporated trust was subsequently dissolved. As the Trustees consist of the MCF and the chairman of the MCF, the MCF exarcises control over the Charity, and will consolidate the Charity's results in its group accounts. Details of the processes for the appointment, induction and training of the MCF'S trustees are given in the annual report and accounts of that company. Governance and Management All govemance and management capabilities are provided by the MCF and details of the relevant committees and processes are provided in the annual report and accounts of that company. Trustees and committees of the MCF address the specific needs of the Charity as part of their roles and responsibilities for the MCF. The trust88 board and the main committees meet as follows: Boardlcommittee Purpose Meetings per ear Trustee Board Main decision-making body with ultimate responsibility for the Charit Identification and miti ation of risk, oversi ht of extemal audit Consideration of applications for grants from organisations reco nised b the Charit Commission Ensuring adequate procedures are in place to manage all as cts of financial lannin controllin and re rtin Supporting the masonic communty's fund raising activities to su ort the Charit Maintaining investment strategies to meet the requirements of the Charit ointment and monitorin of fund mana ers Consideration of applications from individuals connected with the masonic communit for financial relief Development and execution of strategies to optimise the retums from the Charit ro ortrolio Determination of executive and stsff & benefits Development and implementation of strategies to support the Charity's objectives. In addition, the trustees hold an annual strate ic 'awa Audit and Risk Charity Grants Finance Fundraising Investments Masonic Support Property (RMTGB onl Remuneration Strategy The Charity does not employ any staff, with services being provided by staff employed by the MCF. These S8rrfices are recharged by the MCF monthly, based upon Ihe number of grants processed, as detailed in note 6 to the accounts. Page 5 of 30
MASONIC SAMARITAN FUND TRUSTEES, ANNUAL REPORT Related Charity In accordance with a Scheme approved by the High Court on 201h July 1999, the Royal Masonic Hospital Charity {'RMHC'), registered charity number 205793, is controlled by a board of management defined as the persons who from time to time constitute the board of trustees of the Charity. The High Court Order was amended in accordance with a resolution of the members of the unincorporated trust to delete references to the unincorporated trust and substitute references to the Charity. RMHC continues to receive legacy income (£0.05 M during the current year), which is transferred as a grant to the Charity. The results of RMHC have been consolidated with those of the Charity in the financial statements. Page 6 of 30
MASONIC SAMARITAN FUND STRATEGIC REPORT Objectives and Activities Objectives The beneficiaries of the Charity are Fr8emasons, the wives (or widows as the case may be) or the children or dependents or partners of Freemasons or deceased Freemasons. The objects for which the Charity is established are to advance health and relieve those in need (whether financially or otherwise) by reason of their ill-health or disability by the provision of medical assistance, support, treatment, care or advice to beneficiaries, and by commissioning research which is anticipated to offer benefits to beneficiaries. Support will principally give relief to applicants who demonstrate a financial need and who are othenvise unable to obtain treatment or care from the NHS or Local Authority (or overseas equivalent) without undue delay or hardship. Activities Grants are offered toward the cost of: Private medical treatment, surgery or specialist consultations for those facing a lengthy wait for treatment or surgery on the NHS. Home adaptations for those with disabilities and mobility problems who are unable to get support from their Local Authority (or equivalent), or who face a lengthy wait for those adaptations. Mobility aids for in and around the home and car for those unable to get support from th8 NHS or their Local Authority. Essential dental treatments and procedures which cannot be provided freely or quickly on the NHS. Respite care for family carers who provide vital support for a loved one. Medical research to fund basic, clinical and epidemiological research projects that aim to improve knowledge, treatment and services for those with illnesses or disabilities. In addition to grants, advice and support is offered to help those in need to navigate the health and social care system to ensure they are reIving the support to which they and their loved ones are entitled. Grants are assessed against eligibility criteria, the guidelines for which are reviewed regularly. Aims Following th8 creation of the MCF, for 2023124 the primary aim of the Charity was, through the work of the MCF. to combine grant-making activities with those of the RMTGB and TGC to ensure the combined broad range of support was offered to all eligible beneficiaries consistently to the same high standards. Page 7 of 30
MASONIC SAMARITAN FUND STRATEGIC REPORT Publlc Benefit The Trustees have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers and duties. As described above, the Charity offers assistance to Freemasons and their dependents who can demonstrate a medical and financial need. Th8 Charity has continued to make significant grants in aid of medical research, which benefit the national and international community. It is expected that it will continue to make further grants in the future under the direction of the MCF (the parent charity), subject to the availability of funds. There are currently approximately 160,000 Freemasons in England and Wales, plus a further 20,000 in overseas districts, and similar number of dependents. Thus almost half a million people are potentially eligible for the Charity's support. Freemasonry is a secular fraternal society which is open to all adult men who subscribe to its moral and spiritual values. Achievements and Perforniance The Charity has successfully merged its Masonic grant-making activities under the MCF, resulting in a single point of contact and support for all those within the Masonic community seeking help with health and care needs. Through the creation of GAMES (Grant Application Management and Evaluation System) it can now manage, monitor and report on all grants and enquiry activity. GAMES also allows trained volunteers to submit and monitor applications for support online in their 4r, ;=gicr,= Through the MCF 1,577 grants were awarded to 1,162 unique beneficiaries for a total of £4.25 M, net of write backs from prior years, across a wide range of forms of support. A grant of £6.92 M was provided to the Royal Masonic Benevolent Institution Care Company ('RMBICC") to support publically-funded Freemasons in care homes. Page 8 of 30
MASONIC SAMARITAN FUND STRATEGIC REPORT Financial Review Review of the Year The principal funding sources continue to be legacies and investment turnS. Income of £1.13 M was in line the prior year. Legacies are by nature variable, and income from this source for the current year of £0.47 M was 240/0 lower than the prior year. High interest rates during the year resulted in investment income of £0.61 M, 31 % higher than prior year. Expenditure of £13.13 M was 17 % higher than the prior year, due to the high8r value of medical grants made in the year following record high NHS waiting times. Charitable support costs of £1.89 M were 20 % higher than prior year, with a greater allocation of central costs to the MSF due to the increased number of grants made. Investment gains of £0.05 M were achieved compared to losses of £0.15 M in the prior year. The deficit for year transferred to reserves was £11.95 M (2023: deficit of £10.25 M). Reserves Policy Following the commencement of operations of the MCF in April 2016, all new festivals have been targeted to raise funds forthis new charity, which has wide objects to direct grants to where support is most needed. As a result, voluntary incom8 for the Charity has declined significantly to minimal levels over the past two years. The policy is to prioritise the payment of all grants that fall underthe objectives of the Charity through the reserves of the Charity before drawing upon the resources of the MCF. Consequently, it is planned that the Charity's reserves will eventually diminish to a minimal level and the occasional legacy, at which time the MCF will take over full responsibility for the continuation of the Charitys objects. Page 9 of 30
MASONIC SAMARITAN FUND STRATEGIC REPORT Principal Risks and Mitigation The principal risks identified and agreed actions to mitigate are shovm in th8 following table: Risk Significant unexpected financial loss from operations Conse uence Reputational damage, loss of confidence with key slakeholders and impact upon continuing financial sustainabilit Poor service to beneficiaries and reputational damage. Withdrawal of ke services from su liers Impacts financial suslainability and reputational damage with donors ation Strong financial procedures. particularly budgetary planning and control. Oversight from the Finance Committee. Inadequate liquidity to meet financial commitments Significant long-term loss in the value of the invostmont portFolio Cash flow forecasting and liquidity planning within the Investment Strategy Appointment of Asset Risk Consultants as expert investment advisors, providing monthly performance reporting and analysis. Oversight from investment and ro committees. Strong procedures and controls for processing grants. Oversighl from Masonlc ort and Charit Grants committees UGLE manage and monitor networks, servers and backup systems, and has deployed appropriate defence mechanisms e.g. firewalls, antivirus etc. Third party hosted systems lapplications have relevant controls and security regimes. Information systems are only accessed via the VPN network andlor multi- factor aulhentication protocols. Grants made outside the Charitws Objects and eratin uidelines Cyberattack on IT systems Reputational damage. loss of confidence wilh key stakeholders and otential truslee liabilit Operalional disruption resulting In financial, reputational. legal and regulatory damage. MCF'S Informalion Security Group (ISG) have various digital & IT procedures and policies in place. Cyber awareness and trainin ro ramme mandalor for all staff. Data protection policy. IT security and HR olicies in lace Financial procedures, segregalion of duties, authority limits, IT security, increased awareness amon st staff MCF Business Continuity Plan Data protection breach Reputational damage and significant financial enalties Financial loss, repuiational damage, adverse impact upon staff Fraud Unavailability of office accommodation Loss of paper records from firefflooding Operations compromised Breach of legal obligations. adverse impact upon operations, potential financial enalties Breach of legal obligations, potential financial penalties, breakdown of staff morale and adverse impact n service rovision Operational breakdown, adverse impacl upon staff morale, poor service to beneficiaries and potential re utational dama Reduced lIanCe on paper records with increased use of IT. Lack of compliance with employment legislation HR procedures and staff handbook. Induction processes for new staff. Ongoing management training and Personal Develo menl Review HR procedures.. organisational and succession planning. Comprehensive documentation of procedures and controls Undue reliance on key persons Risks are actively monitored by the Executive and the senior leadership team, and formally reviewed by the audit and risk committee at their quarterly meetings. Page 10 of30
MASONIC SAMARITAN FUND STRATEGIC REPORT Investment Policy and Performance The MCF global investment strategy seeks to protect the capital value of investments that are required to fund operations for a three-year time horizon (the "Cash Reserve.) and to invest all remaining funds for long term grothrth, on a total return basis, with an overall objective of making a retum of CPI plus 3.50A net of all expenses. The Cash Reserve is provided by Royal London Asset Management ('RLAM") and utilises three of their funds, which provide a mix of instruments, including cash instruments, Treasury Bills, covered (secured) bonds, corporate bonds, Supranationals and mortgage-backed securities. The performance objectives of the three funds are: Short Term Money Market Fund.. Short Term Fixed Income Fund: Short Term Fixed Income Enhanced Plus Fund: SONIA SONIA plus 0.500k gross of fees SONIA plus 1.000/0 gross of fees The MCF sponsored the launch of the Masonic Charitable Foundation Investment Fund CAIF, which took place on 1st October 2018. This is a unit trust with a highly efficient tax wrapper in which the MCF and all its subsidiary charities own their shares in the fomi of units. Units will be sold as required in order to top up the Cash Reserve on a quarterly basis. The investment strategy is directed for'steady Growth" which is a medium-high risk strategy. Risk is managed through diverstfication, with the funds split between four different fund managers operating on multi asset mandates but utilising differing investment management styles. The overall fund manager is Thesis Unit Trust Management Limited and the custodian is Northem Trust. st The strategic and actual asset allocations as at 31 March 2024 are shown in the following table: Asset Class Strategic Allocation Benchmark Actual 31. March 2024 Cash Fixed Income International E U.K. E uit Erne in Market E uit Altemative Investments Pro ert SONIA FTSE UK World Gov. Bond Index GBP MSCI World ex UK NR GBP MSCI UK E uit NR GBP MSCI Eme in Markets E uit NR GBP HFRX Global Hed e Fund GBP IA UK Direct Pro TR uit 12.69% 3.75 % 100.OOQ/o 100.00% Performance under the new arrangements is shown in the table overleaf: Page11 of30
MASONIC SAMARITAN FUND STRATEGIC REPORT Investment Policy and Performance (Continued) MCF CAIF RLAM Money Market RLAM Short Tenn Fixed Income RLAM Short Term Fixod Income Enhanced £Nil Capital Protection CCLA Property Fund Fund at 31st March 2024 Investment approach £Nil Steady Growth Multi- Asset £7.31 M Capital Protection £Nil Capital Protection £Nil Income & long-term Capital Growth MSCIIAREF UK other balanced ro ARC Charity GBP Steady Growth 0.50 % 1.10 Benchmark Composite SONIA SONIA SONIA Peer Group ARC Charity GBP Steady Growth None None None Return for the ear Benchmark return for Peer rou return for ear return ear benchmark ear eer rou 16.20% ear 4.97Q/o 4.970 4.30% 4.97 % ear stock markets had a very strong run in the final quarter of the financial year, resulting in an increase in the valuation of the MCF CAIF from its opening value of £126.25 to close at £146.47 per unit. Plans for Future Periods All future grant-making and support activities will be managed through the MCF, but those relating to the Charity's objects will be recharged back to it. With all new festivals being linked to the MCF, this will result in reserves being depleted over a period of time. The Charity will continue to receive income from its investments, which will extend the remaining lifetime of the Charity. Key activities being planned for the future by the MCF on behalf of the Charity are provided in the annual report and accounts of the MCF. Page 12 of30
MASONIC SAMARITAN FUND STATEMENT OF TRUSTEES, RESPONSIBILITIES Statement of Rosponslbillties The Trustees, who are also the directors of the Charity for the purposes of company law, are responsible for preparing the trustees, report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (U.K. "GAAP"). Company law qUireS 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 of the income and expenditure of the Charity for that year. In preparing these financial statements, the trustees are required to: select suitable accounting policies and then apply them consistently; observe the methods and principles in Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing théir financial statements in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102); make judgements and estimates that are reasonable and pwdent. state whether United Kingdom accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and prepare the financial statements on the going concem basis unless it is inappropriate to presume that the charity will Continue to OP8rat8. The Trustees a responsible for keeping proper accounting records that disclose with reasonable accuracy at any tim8 the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and for taking reasonable steps for the prevention and detection of fraud and other irregularities. Statement of Disclosure of Information to Auditor Each of the Trustees has confirmed that thera is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identrfy such relevant informatlon and to 8Stablish that the auditor Is aware of such infonnation. Auditor A resolution proposing that Knox Cropper LLP be reappointed as auditor will be put to the members. Approval by Trustees This report, including the strategic report, was approved by the Trustees on 12th September 2024 and signed on their behalf by Long. T President and Chairman, MCF Page 13 of 30
MASONIC SAMARITAN FUND REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBER OF THE MASONIC SAMARITAN FUND Opinion We have audited the financial statements of Masonic Samaritan Fund (the 'Parent Charity,) and its subsidiary ('the Group,) for the year ended 31 March 2024 which comprise the Consolidated Statement of Financial AGtivities, the Consolidated and Parent Charity Balance Sheets, Consolidated Statement of Cash Flows and 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 applicab18 in th8 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 group's and the Parent Charity's affairs as at 31 March 2024 and of the Group's income and expenditure 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 Companies Act 2006. Basis of opinion We conducted our audit in accordanco with Intcrnational 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordan 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 concem 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 Charitable Companls ability to continue as a going Goncem 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. Page 14 of 30
MASONIC SAMARITAN FUND REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBER OF THE MASONIC SAMARITAN FUND 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 infonmation. Our opinion on the financial statements does not cover the other infomation and, excapt to the extent otherwise explicitly stated in our report, we do not express any fomi of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such malerial inconsistencies or apparent material misstatements, we are required to determine whether there is a material misslatement in the financial statements themselves. 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. Opinion on other matters prescribed by the Companle8 Act 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the Trustees, report, which includes the directors, report and the strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and the strategic report and the directors, report included within the Trustees, report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by excoption In the light of the knowledge and understsnding of the group and the parent charity and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors, report included within the trustees, report. We have nothing to report in spect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: the Parent Charity has not kept adequate and sufficient accounting records, or retums adequate for our audit have not been received from branches not visited by us. or the Pant Charitls financial statements are not in agreement with the accounting records and returns; or certain disclosures of trustees, remuneration specified by law are not made" or we have not received all the information and explanations we require for our audit. Page 15 of30
MASONIC SAMARITAN FUND REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBER OF THE MASONIC SAMARITAN FUND Responsibilities of Trustees As explained more fully in the Trustees, Responsibilitl8s Statement set out on page 13, the Trustees (who are also the directors of the charitable company for the purposes of company law) 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 the trustees 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 Group's and Parent 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 group or parent charily or to cease operations, or have no realistic alternative but to do so. Auditor's responslbllities for the audlt of the flnancial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whetherdue to fraud or error, and to issue an auditor's reportthat 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 finanGial statements. IrrAniJlAritip.q inr.Iiidin(J fraijd arp. in8tAne.p.s nf nnn-CnmDIian with and reaulations. We desian procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: The Parent Charity is required to comply with both company law and charity law and, based on our knowledge of its activities, we identified that the legal requirement to accurately account for any restricted funds was of key significance. We gained an understanding of how the Parent Charity complied with its legal and regulatory framework, including the requirement to properly account for any restricted funds, through discussions with management and a review of the documented policies, procedures and controls. The audit team, which is experienced in the audit of charities, considered the Parent Charity's susceptibility to material misstatement and how fraud may occur. Our considerations included the risk of management override. Our approach was to check that all restricted income was properly identified and separately accounted for and to ensure that only valid and appropriate expenditure was charged to restricted funds. This included reviewing journal adjustments and unusual transactions. 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.or auditorsres onsibilities. This description fonns part of our auditorfs report. Page 16 of 30
MASONIC SAMARITAN FUND REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBER OF THE MASONIC SAMARITAN FUND Use of the audit report This report is made solely to the Parent Charity's member in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken, so that we might state to the charitable companls member those matters we are required to state to them in an auditorfs 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 charitable company and the charitable company's member for our audit work, for this report or for the opinions we have formed. r: Stephen Anderson FCCA Senior Statutory Auditor for and on behalf of Knox Cropper LLP Statutory Auditor 65 Leadenhall Street London EC3A 2AD ? kh iÉrknmi6r 2 u211 Page 17 of30
MASONIC SAMARITAN FUND CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 MARCH 2024 (Including a Consolidated Income and Expenditur8 Account) Note 2024 £'ooo 2023 £'ooo INCOME Donations and legacies Investment income 522 611 669 469 Total income 1,133 1,138 EXPENDITURE Cost of generating funds Investment management costs (24) (15) (18) (118) 39 136 Charitable activitles Masonic grants Non-masonic grants {13,063) (30) (10,814) (288) 13,093 Total expenditure Net gainsl(losses) on investments NET MOVEMENT IN FUNDS 13,132 11,238 47 (147) 10,247 11,952 Total funds brought forward 16,491 26,738 Total funds carried forward 4,539 16,491 All income and expenditure derive from continuing activities and all gainsllosses are included in the statement of financial activities. The notes on pages 21 to 30 form part of these financial statements. Page 18of30
MASONIC SAMARITAN FUND BALANCE SHEET as at 31 March 2024 Company Number 6876310 Note March 2024 March 2023 Group Company £'ooo £'ooo Group Company £'ooo £'ooo CURRENT ASSETS Debtors Investments Cash at bank and in hand 310 7,312 145 302 7,312 141 204 18,047 635 203 18,047 634 7,767 7,755 18,886 18,884 CURRENT LIABILITIES Creditors falling due within one year NET CURRENT ASSETS 10 (3,083) (3.083) (1,966) {1,966) 4.684 4,672 16,920 16,918 Creditors falling due after one year 10 (145) (145) (429) (429) Total net assets 4,539 4,527 16,491 CHARITABLE FUNDS Unrestricted fund8 General reserves 4,539 4,527 16,491 16,489 Total charitable funds 4,527 16,491 16,489 The financial statements were approved and authorised for issue by the Trustee Board on 12th September 2024 and signed on their behalf by: (('; mes ong, TD Clive Emerson. Chairman Treasurer The notes on pages 21 to 30 form part of these financial statements Page 19 of30
MASONIC SAMARITAN FUND CONSOLIDATED STATEMENT OF CASH FLOWS YEAR ENDED 31 MARCH 2024 2024 £'ooo 2023 £'ooo Operating Activities Net cash provided byl(used in) Operatlng Activities 12,476 11,983 Cash flows from investing activities Dividends, interest and renls from investments Proceeds from the sale of investments 611 11,375 469 8,720 Net cash provided byl{usod In) Investing Activlties 11,986 9,189 Change in cash and cash equlvalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period (490) (2,794) 635 3,429 145 635 Notes on the cash flow statement Reconciliation of net incomel(8xpenditure) to nat cash flow from operating activities Net movement in funds as per the Statement of Financial Activities (11,952) (10,247) Adjustments for: Dividends, interest and rents from investments Other movements in investments (Increase) in debtors Increasel(decrease) in creditors Net cash provided byl(used in) Operating Activiti88 (611) {640) (106) 833 (469) (300) (87) (880) 12,476 11,983 Analysis of cash and cash equivalents Cash at bank and in hand 145 635 Total cash and cash equivalents 145 635 Page 20 of 30
MASONIC SAMARITAN FUND NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES (a) SLqtement of complianco The financial statements of the Masonic Samaritan Fund (the "CharitK) have been prepared in accordance with applicable UK accounting standards, including Financial Reporting Standard 102 °The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland" ('FRS 102°). Additionally, they comply with the Companies Act 2006, the Charities (Accounts and Reports) Regulations 2008 and the Statement of Recommended Practice'Accounting and Reporting by Charities. (FRS 102 second edition) published in 2019 (the 'SORP") in all material respects. The Charity meets the definition of a public benefit entity under FRS 102. (b) Basls of preparation The financial statements have been prepared on a going concern basis under the historical cost convention. as modified by the revaluation of investments, on a basis Gonsistent with previous years. The functional currency of the Charity is considered to be Pounds Sterling because that is the currency of the primary economic environment in which the Charity operates. These financial statements consolidate the results of the Charity and the Royal Masonic Hospital Charity ("RMHC") over which it has significant control. The results have been consolidated on a line by line basis. A separate Statement of Financial Activities for the Charity itself is not presented because the Charity has taken advantage of the exemptions afforded by Section 408 of the Companies Act 2006. (c) Going concern The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The Trustees have made this assessment in respect to a period of one year from the date of approval of these financial statements. The Trustees of the Charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees a of the opinion that the Charity will have sufficient resources to meet its liabilities as they fall due. Page 21 of 30
MASONIC SAMARITAN FUND NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 (d) Incoming resources Revenue is recognised when the significant risks and rewards of ownership have been transferred, the amount of revenue Gan be measured reliably, it is probable that future economic benefits will flow to the Charity and when the specific criteria relating to each of the Charity's revenue channels hav8 been met, as described below: Monetary donations are brought into account when received. Legacies are recognised where thare has been a grant of probate, the executors have identified that there are sufficient assets in the estste after settlement of liabilities to pay the legacy and any conditions attached to the legacy are either in control of the Charity or have been met. Legacies subject to the interest of a life tenant are not recognised during the lifetime of the life tenant. Dividends are reinvested in the CAIF on the date that they are declared. (e) Resources oxpended Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Charity to that expenditure, it is probable that settlement will be required and the amount of any obligation can be measured reliably. All resources expended are recognised on an accruals basis, with the exception of qrants as noted below. Expenditure on generating funds includes costs of fundraising and maintenance of festival and donor records, together with the management of the investment portfolios. These costs include the allocation of support costs relating to these activities. Charitable activities are split between masonic activities and grants awarded to extemal institutions (designated as "non-masonic. within the SOFA). Masonic activities include the payment of grants directly to beneficiaries together with related welfare and support costs. Non-masonic activities consist of the payment of grants to external institutions. Support costs are allocated to these activities on the bases laid out in note 6. Grants are recognised as expenditure in the year in which the grant is formally approved by the Charity and has been communicated in writing to the recipient, except to the extent that it is subject to conditions that enable the Charity to revoke the award. The provision for multi-year grants is recognised at its present value when settlement is due over more than one year from the date of the award, there are no unfulfilled performance conditions under the control of the Charity that would permit it to avoid making future payments, settlement is probable and the effect of discounting is material. The discount rate used is the long-tenm return of inflation plus 4 percent used as the target for the Charity's investment portfolio. Page 22 of 30
MASONIC SAMARITAN FUND NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 (f) Employoe benefits All staff are employed by the parent charity, The Masonic Charitable Foundation, and recharged to the Charity based upon the relative number of grants processed. Information relating to those employees is given in the accounts of the Masonic Charitable Foundation. (g) Fund accounting Unrestricted funds may be utilised for any purpose in accordance with the charitable objectives of the Charity. (h) Investments Investments are recognised initially at fair value which is nonnally the transaction price excluding transaction costs. Subsequently, they are stated at market value. All realised and unrealised gains and losses are recognised within the Statement of Financial Activities. Investments which the Charity holds for resale or pending their sale and cash or cash equivalents with a maturity date of less than one year, which are held for investment purposes, are disclosed as current asset investments. (i) Flnanclal assets and liabilities The Charity has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. Financial assets and liabilities are recognised when the Charity becomes a party to the contractual provisions of the instrument. Financial assets and liabilities which qualify as basic financial instruments are initially recognised at the settlement amount after any trade discounts. They are subsequently valued at amortised cost and assessed for impaiment at the end of each reporting period. Where settlement is not expected within 12 months of the balance sheet date, then the asset or liability is discounted using the long term return of inflation plus 4 percent used as the target for the Charity's investment portfolio. Basic financial instruments include debtors, cash and creditors within the balance sheet. (k) Foreign currencies Transactions denominated in foreign currencies are translated into Pounds Sterling at the exchange rates ruling at the date of transaction. Monetary assets and liabilities denominated in foreign currencies are translated into Pounds Sterling at the rate ruling at the balance sheet date. All foreign exchange gains and losses, realised and unrealised, are r8cognised in the Statement of Financial Activitl8S. Page 23 of 30
MASONIC SAMARITAN FUND NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 {1) Taxation The Charity is exempt from taxation on its income and gains falling within Part 11 of the Corporation Tax Act 2010 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that they are applied to its charitable activities. The Charity is unable to recover Value Added Tax (VAT) incurred on expenditure. The amount of VAT that cannot be recovered is included within the underlying cost to which it relates. Page 24 of 30
MASONIC SAMARITAN FUND NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 DONATIONS AND LEGACIES 2024 £'ooo 2023 £'ooo Festivals other donations Legacies 50 471 52 617 522 669 INVESTMENT INCOME 2024 £'ooo 2023 £'ooo Interest on bank deposits Income from investment portfolios 605 468 611 469 INVESTMENT MANAGEMENT COSTS 2024 £'ooo 2023 £'ooo Investment fund management Support costs 15 88 30 15 118 5. CHARITABLE ACTIVITIES 2024 £'ooo 2023 £'ooo Masonic Care and welfare support Sickness and illness Support Costs 6,923 4,252 1,888 6,670 2,575 1,569 13,063 10.814 Non-masonlc Medical & Social Research Programme Support Costs 30 283 30 288 Masonic support of £11.175k Gonsisted of 1,577 grants with a value of £4,252k, net of write back of prior year commitments, made to individual beneficiaries and a grant made to the RMBICC to support publically-funded Freemasons in care homes {£6,923k}. Page 25 of 30
MASONIC SAMARITAN FUND NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 Non- Cost of Investment Masonic Masonic Total Generating Management 2024 Funds £'ooo SUPPORT COSTS Basis for Allocation £'ooo £'ooo £'ooo £'ooo Relief Chest - Fundraising Fundraising Legacies Masonic Support- Grants Masonic Support- Advice & Support Masonic Support - Provincial & Volunteers Relief Chest - Charitable Charity Grants Impact & Risk Executive Finance Digital & Technology Human Resources Communications Govemance Property Management Administration and Support Facilities & Admin - Ruspini House Other (a) (a) (a) (a) (a) (a) (a) (a) {b) (c) (c> (b) (b) (b) (b) (b) (b) (b) 24 24 314 338 81 314 338 81 57 173 165 156 56 189 63 128 111 57 173 185 156 56 189 63 126 111 {5) (5) 24 1,888 0 1,912 Basis for allocation Directly attributed Number of grants processed Headcount and number of grants processed Auditor's remuneration of £6k (2023: £13k) is included in support costs to charitable activities. Page 26 of 30
MASONIC SAMARITAN FUND NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 Non- Cost of Investment Masonic Masonic Total Generating Management 2023 Funds £'ooo SUPPORT COSTS: 2023 Basis for Allocation £'ooo £'ooo £'ooo £'ooo Relief Chest - Fundraising Fundraising Legacies Masonic Support - Grants Masonic Support- Advice & Support Masonic Support - Provincial & Volunteers Relief Chest - Charitable Community Support & Research strategic & Impact Executive Flnance Digital & Technology Human Resources Communications Governance Facilities & Administration Administration and Support Facilities & Admin - Ruspini House Other (a) {a) (a) (a) (a) (a) (a) (a) (b) {c) {c) (b) (b) (b) (b) (b) (b) {b) 18 18 259 270 89 48 259 270 89 48 35 140 129 131 65 182 53 157 91 35 140 159 131 65 182 53 157 91 (80) (78) 18 30 5 1.622 Basis for allocation (a) (b) (c) Directly attributed Number of grants prOSSed Headcount and number of grants processed 7. STAFF COSTS The Charity employed no staff during the year (2023: Non8). Stsff recharges from the MCF to the Charity are included within the management charge analysed in note 6 above. No Trustees received remuneration from the Charity during the year (2023: £Nil). No Trustees, expenses were incurred during the year (2023: £Nil). Page 27 of 30
MASONIC SAMARITAN FUND NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 INVESTMENTS March 2024 Group Company £'ooo £'ooo March 2023 Group Company £'ooo £'ooo CUrnt Asset Investments Managed funds RLAM Cash Reserve funds 7,312 7,312 18,047 18,047 7.312 7,312 18,047 18,047 MOVEMENTS IN INVESTMENTS Balance at 1 April 2023 Disposals Investment income reinvested Management fees charged to the fund Gainsl(losses) Balance at 31 March 2024 18,047 18,047 (11,375) (11,375) 605 605 26,467 (8,720) 468 26,467 (8,720) 468 (12) 47 {12) 47 (21) (147) 18,047 (21) (147) 7,312 7,312 18,047 RECONCILIATION TO SOFA Gainsl(losses) on listed investments 47 47 (147) (147) 147 47 47 147 DEBTORS March 2024 Group Company £'ooo £'ooo March 2023 Group Company £'ooo £'ooo Amounts Owed by group undertakings Prepayments and accrued inGome other debtors 85 82 225 220 200 201 310 302 204 203 Page 28 of 30
MASONIC SAMARITAN FUND NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 10. CREDITORS March 2024 Group Company £'ooo £'ooo March 2023 Group Company £'ooo £'ooo Falling due within one yoar Grants payable Amounts owed to group undertakings Accruals and deferred income 2,117 965 2,117 965 1,395 564 1,395 564 3,083 1,966 1,966 Falllng due after more than one year Grants payable 145 145 429 429 145 145 429 429 11. RELATED PARTY TRANSACTIONS The Charity controls the Royal Masonic Hospital Charity (RMHC) through common trustees. During the period grants totalling £40,000 (2023: £108,000) were made by RMHC to the Charity. The majority of this related to the transfer of legacies received by the RHMC. £745 was owed by the Charity to the RMHC at the balance sheet date (2023: £745). The MCF has paid out grants on behalf of the Charity during the year, and has been reimbursed by the Charity. Additionally, the MCF has borne all the administrative costs of supporting the Charity as well as its fellow subsidiary charities. The Charity has been recharged a proportion of these cost8 based upon the relative number of grants processed. Page 29 of 30
MASONIC SAMARITAN FUND NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 12. INVESTMENT IN SUBSIDIARY The RMHC (Registered Charity No. 205793) has its principal place of business at 60 Great Queen Street, London, WC2B 5AZ. The summary of its results for the year and its net assets as at 31st March 2024 is shown as foll0v. INVESTMENT IN RMHC 2024 £'ooo 2023 £'ooo Gross income Donation to parent charity Net movement in funds Total funds brought forward Total funds carried forward 49 40 109 108 12 Represented by net assets as follows: Cash at bank and in hand Amounts owed by group undertakings Other debtors 12 13. LEGAL STATUS The Charity is a company limited by guarantee and has no share capital. The liability of the member in winding up is limited to £1. 14. ULTIMATE CONTROL•LING PARTY The ultimate controlling party is the Masonic Charitable Foundation (Registered Charity No. 1164703, Company Number 09751836), which is the sole member of the company. Consolidated accounts for the MCF, which include the accounts of the Charity, can be obtained from the registered office of the Charity. Page 30 of 30