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2022-03-31-accounts

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 MARCH 2022

Caring is our way of life

Registered Charity No: 1163245 | Company No: 1293566 60 Great Queen Street London, WC2B 5AZ www.rmbi.org.uk

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Contents

Pages Description

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THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

FINANCIAL OVERVIEW

In 2021/22, despite the ongoing challenge of the COVID-19 pandemic, Royal Masonic Benevolent Institution Care Company continued to deliver its strategy, whilst planning for a world beyond the pandemic. Our brand new care home in Berkshire is expected to be opened for admissions in September 2022 and the Board has approved an ambitious 20-year vision for the Charity - with a view to streamlining and diversifying the operations in order to increase the support that we provide to our beneficiaries.

Operationally, the number of admissions to our care homes during the year indicated the highest level since pre-COVID-19. However, widespread care staff shortages, regulatory pay increases and soaring energy costs, lead to significant inflationary pressures. For the Charity, this sharp rise in inflation was one of the defining features of the year, impacting our net operating results. Despite this challenging background, and with our determination to provide the best quality care to our residents, a strong set of results were delivered in 2021/22- exceeding our forecast and the budget.

During the financial year, the income from Charitable Activities increased by 4%. The donations through our parent Charity and Infection Control grants amounts to 17% of the total income of £54.3m. As in previous years, payments from Local Authorities towards the care of our supported residents were far lower than the cost of providing high quality care. As a result, the company provided charitable support for residents of £12.4m to cover this shortfall.

Generous donations from Masonic Community of £6.5m, channelled through our parent charity Masonic Charitable Foundation (MCF), strengthened our balance sheet and liquidity position to achieve operational targets and enabled effective service delivery during this period.

In our care homes and throughout the social healthcare sector, complexity in the care needs of residents has been increasing. In addition, ongoing regulatory changes have driven a need for higher staffing levels to ensure provision of safe and high quality care. The industry-wide difficulty in recruiting qualified care staff has also contributed to an increase in the operating costs. As a result of our continual effort to deliver efficiency improvements and operational controls, the cost of providing care during this financial year showed a below inflation increase of 2% to £61m.

The capital investments during the year to improve our care facilities amounted to £6.4m, providing our residents with a pleasant and comfortable living environment. The property improvement cost included the build cost during the year of £4m for our brand new Care home in Berkshire. A further investment of £700k was made on computer hardware, software and equipment to enhance operational efficiency.

The value of the company’s investments, inclusive of investment properties and social investments, were £32.4m. The net assets of RMBI Care Company, as at the end of the year was £118m.

In the coming year, progress will be made on new development opportunities. The Board’s 20-year Vision Statement for the Charity will inform our plans to invest in new care home developments and confirm our entry into the retirement community market.

RMBI Care Company continues to operate within a challenging social care market. However, we remain committed to continuing to serve our residents by providing high quality care, whilst maintaining a safe working environment for our staff.

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THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

REPORT OF THE TRUSTEES

The Trustees -who are also Directors of the Charity for the purposes of the Companies Act 2006 - present their combined Directors and Trustees report with the financial statements of the Charity for the period ended 31 March 2022. The Trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).

Grand Officers, Trustees and Directors

Grand President

The Most Worshipful the Grand Master, HRH the Duke of Kent, KG, GCMG, GCVO, ADC

Deputy Grand Presidents

eputy Grand Presidents
The Pro Grand Master MW Bro PG Lowndes
The Deputy Grand Master RW Bro J Spence
TheAssistant GrandMaster RW Bro Sir DavidWootton

Grand Vice Presidents

rand Vice Presidents
RW Bro DA Buswell VW Bro CJ Caine
W Bro PE Cornish RW Bro JE Moore
RW Bro JH NewmanOBE RW BroRJRaceDL
W Bro J Reuther RW Bro Willie Shackell CBE
VW Bro RJ Wade W Bro D Vine
W Bro RW Marks Mr DR ff Innes
RW Bro Sir P Williamns OBE KStJ DL

RMBI Care Company Board Members (Trustees)

John Boyington CBE Chair
David Southern Deputy Chair
Sushil Radia Treasurer
Ian Newby Director
Mark Constant Director
Charlotte Miller Director
Sylvia Short OBE Director
John Smith Director (resigned September 2021)
David Snowdon Director
Chris White Director
Martyn Yeats Director
Malcolm Vede Director

The Masonic Charitable Foundation (MCF), as the Corporate Trustee, appoints the Chairman of the Board of RMBI Care Company and endorses all other appointments.

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THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Appointment of Trustees

The Charity has adopted the Charity Commission’s guidelines for best practice and has amended the selection process accordingly.

Recruitment of Trustees

The Trustees of RMBI Care Co are appointed by the RMBI Care Co Nominations Committee and selected for their skills, experience and status within areas of expertise required by the charity. A review of Charity Governance and an annual skills audit informs any gaps identified. Additional Trustees may be co-opted to the maximum of 12 Trustees.

During 2021/22 a review of the Articles of Association has been undertaken with parent consent from the MCF to lead to submission to the Charity Commission for approval. This will enable up to 15 Trustees at anyone time to be appointed in the future.

In 2021/22 a full review of the Charity Commission Governance Codes and framework has been undertaken with an agreed action plan approved by the Board to address any specific gaps. Section 6 relating to Equality, Diversity, and Inclusion has been highlighted as a key area with a Trustee working group established to make recommendations for the Charity.

Succession Planning

One third of Trustees stand down each year and can be re-elected for a further term of three years for three cycles up to nine years. Evaluation of the Trustee experience is carried out annually to ensure assessment and review of role.

Induction and Training of Trustees

New Trustees and Co-opted Members receive a full induction and information on the role requirements and key information on the organisation. Training modules have been introduced through e-learning for all Trustees to undertake, with GDPR and Diversity and Equality Training identified as mandatory. In addition, Trustees receive Safeguarding training from an external training professional.

Principal Committees

Audit and Risk Committee

dit and Risk Committee
Mark Constant Chair
Sushil Radia Treasurer
Chris White Trustee
Martin Bevan CommitteeMember

Property and Maintenance Committee

perty and Maintenance Committee
David Southern Chair
Ian Newby Trustee
Sylvia Short OBE Trustee
Martyn Yeats Trustee
Derek Weidner Committee Member
Neil Parlett Committee Member

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THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Finance and Investment Committee

ance and Investment Committee
Sushil Radia Chair
Chris White Trustee
Mark Constant Trustee
Martin Bevan Committee Member

Care and Quality Committee

e and Quality Committee
Ian Newby Chair
Sylvia Short OBE Trustee
David Snowdon Trustee
Martyn Yeats Trustee
Sarah Sheppard Committee Member

Development and Delivery Committee

Charlotte Miller Chair
David Snowden Trustee
Malcolm Vede Trustee

Senior Leadership Team (Executive Management)

Mark LLoyd ManagingDirector
Louise Bateman Human Resources Director
Kevin Harris Development Director
Marc Nelson-Smith Property Director
Lal Ranasinghe Finance Director
Karen Salley Care Operations Director
Brett Edwards Health and Safety Director

Remuneration of Executive Management

The Charity’s policy is to reward Executive Management according to their expertise and experience. The Executive Management’s benefit package comprises of a basic salary, pension contribution, car allowance or company car and the option of private health provision.

Basic salaries are reviewed annually against the charity sector as well as the wider professional market and information is presented to the RMBI Managing Director and Chairman for their consideration and then by the RMBI Care Co Remuneration Committee. No member of the Executive Management is able to make a decision on their own pay.

Actuaries and Consultants

First Actuarial LLP, Mayesbrook House, Lawnswood Business Park, Leeds, LS16 6QY

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THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Auditors

Knox Cropper LLP, Chartered Accountants, 153-155 London Road, Hemel Hempstead, Hertfordshire, HP3 9SQ

Investment Advisors

Asset Risk Consultants Limited, 7 New Street, St. Peter Port, Guernsey, GY1 2PF

Investment Managers

Thesis Unit Trust Management Ltd, Exchange Building, St John's Street, Chichester, West Sussex PO19 1UP

CCLA, Senator House, 85 Queen Victoria Street, London, EC4V 4ET

Royal London Asset Management Ltd., 55 Gracechurch Street, London, EC3V 0UF

Solicitors

RadcliffesLeBrasseur, 85 Fleet Street, London, EC4Y 1AE

Forbes Hall, New City House, 71 Rivington Street, London, EC2A 3AY

Womble Bond Dickenson, 4 More London Riverside, London, SE1 2AU

Governance Structure and Management

The Royal Masonic Benevolent Institution Care Co is a company limited by guarantee, having no share capital. It is governed by Memorandum and Articles of Association.

Objects

The Objects of the Charity are to relieve the need, suffering and distress of the Beneficiaries and for that purpose:

The Objects of the Charity are under review to enable submission for approval to the Charity Commission in 2022/23 with a recommendation to extent the definition of need and offering of accommodation.

The prime objective of the Charity remains the running of fifteen care homes, one learning and or/physical disability service in England and two care homes in Wales, and financially supporting those who are unable to pay for the full cost of care.

The Charity has a multi-tier structure with each of the Directors responsible for the management and setting of objectives for their teams informed by the annual Corporate Plan.

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THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Trustees

The Trustees as Charity Trustees and Directors under the Companies Act have control of the Charity and its property and funds.

Decision Making

The Strategic Direction of the RMBI Care Co is set by the Board of Trustees who meet bi-monthly. The delivery of the Board approved Corporate Plan rests with the Senior Leadership Team (SLT), which includes the safe delivery of care and the meeting of agreed budget requirements. Full and detailed reports by the Executive are presented bi-monthly to the Board on progress made against key strategic and operational targets. The SLT meet bi-weekly to review and manage all aspects of the business delivery.

Risk Management

A Corporate Risk Register is overseen by the Managing Director and Senior Leadership Team (SLT) with departmental registers in situ and quarterly reviewed. This is monitored by each Committee, with headline risks reported to the RMBI Care Co Board. Clear policy and procedures are in place for the management of all tenders and procurement against agreed standards.

All 18 care homes are regulated and inspected by the CQC in England and CIW in Wales with published reports in the public domain. The RMBI Care Co also undertakes its own internal inspections for care, health & safety, property, and employment matters. Each care home has in place a Continuous Improvement Plan (CIP) which is informed by external and internal inspection. A strong and robust set of regulatory outcomes were achieved during the year, placing the RMBI Care Co in the top quartile of Care Home Providers.

Governance and Committee Structure

Five Committees are constituted, each reporting to the RMBI Care Company Board.

Each Committee meets on at least a quarterly basis (supported by the relevant lead Director), with each Chair reporting back to the main Board on key matters.

Each Committee has its own dashboard to highlight key performance indicators which, in turn, are reported to the main Board.

Corporate Financial Management

The Charity has four subsidiaries: RMBI Trading Ltd, Stability Investments Ltd, RMBI (Settlement) Limited and 19/21 GQS Limited whose boards contain Trustees that serve on the RMBI Care Company Board and Senior Leadership Team members.

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THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Indemnity Insurance

Indemnity Insurance is in place for Trustees under the umbrella policy of the MCF.

Objectives and Activities

Mission

The RMBI Care Co provides residential, dementia, respite and nursing care across 17 locations for older people and younger learning and or/physical disability services at one location with a combined total of 1,106 placements. Our mission is to provide unique individual care, with kindness, support and trust helping deliver a service that we can all be proud of in making a real difference to people’s everyday lives.

Achievements

The Charity has responded robustly and ensured the safe management of services during the pandemic. All Care Homes as of the 31 March 2022 are in recovery from the impact of Covid19 with each Home Manager receiving a British Citizen Honours Award for their services during the crisis.

In 2021, we were shortlisted for the HR Excellence Awards, in recognition of our Crisis Management Strategy and support for staff through our Health and Wellbeing Strategy. We continue to strive to be an employer of choice, embodying our values: Kind, Supportive and Trusted.

Carehome.co.uk recognised us as a ‘Top 20 Mid-size Care Home Group’ for the fifth year running, and Albert Edward Prince of Wales Court, in Porthcawl, was identified as a ‘Top 20 Care Home’ in Wales. The awards are based on reviews submitted by residents and their families. Achieving such standards during a pandemic is all the more remarkable; it is a strong reflection of how we support those that live and work in our Homes.

Our staff continue to wear Personal Protective Equipment (PPE) and testing remains in place for all visitors. Our Homes have retained strong regulatory ratings, and they passed all infection control inspections during the pandemic due to our robust internal audit and governance procedures.

547 new residents moved into our Homes in 2021, which is a higher rate than what we saw in 2019, pre Covid-19. This demonstrates the ongoing demand for our services, especially our nursing care and dementia support services.

The Board and Executive Team have agreed an ambitious 20-year vision for our charity. Over time, this will see an increase in the support that we are able to provide to our beneficiaries. This includes new build developments, like our first care home in over a decade, which opens later this year in Berkshire.

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THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Care and safety

In time, we will look back on the pandemic and remember the stories of our residents and staff, and the lasting impact the experience has had on each of our lives.

Retaining an older persons charity within the ‘storms’ of a pandemic, often with a lack of clarity in guidance from the Government and statutory agencies, has perhaps been the biggest achievement for RMBI Care Co. A Covid-19 review group, which consisted of specialist managers, formed early to ensure the health and safety of our residents and staff.

Our commitment to purchase PPE in excess of £1m remains one of the most important actions taken to protect our staff, ensuring plentiful supplies were available at the beginning of the pandemic. Our innovative Property Team, who created visitor pods in every care home, enabled us to support family visits throughout the past year. We also shared regular communications with residents and families to update on the changing Government guidance and how it affected them.

Maintaining strong communications with our staff was just as crucial to give assurance and to address any concerns. We created a monthly digital newsletter for staff called ‘Keeping Strong Together,’ which included a personal message from our Managing Director. Purchasing Zoom, an online conferencing platform, prior to the pandemic, also helped inspire our teams to find new ways to stay connected.

Respecting the rights of families to visit loved ones is always a key priority; however, we faced many tough decisions, including restrictions imposed by public health agencies under Government guidance. We worked closely with local health authorities to ensure minimal disruption to family visits, whilst keeping our residents and their relatives informed.

Over the last two years, all our Homes have experienced cases of Covid-19, occurring in three distinct waves. The initial ‘Alpha’ wave affected our northern Homes, the ‘Delta’ wave was experienced more in the south, and the most recent ‘Omicron’ wave was widespread. With great regret and sadness, 115 residents passed away with Covid-19 during this two-year period. Over 1,000 staff members, about 66% of our workforce, also tested positive, and we are pleased to say they all recovered. These are extraordinary statistics and very much in line with what the wider social care sector experienced.

Fortunately, we were able to benefit from various Government grants, totalling around £3m. We responded to the mandating of vaccinations for social care staff and succeeded in retaining most of our workforce. Our staff received a financial bonus to recognise how they went beyond the extra mile, and we now have a greater understanding of the importance of mental health and wellbeing for both our residents and our staff.

We have seen the charity emerge as a more dynamic and inclusive provider of residential, nursing and residential dementia care, with a well skilled workforce who are more resilient for their shared experience.

RMBI Care Co. continues to operate within a challenging social care market. The demand for our services remains strong, and we continue to focus our care and support by living our values and helping to make a positive difference to our residents’ lives.

Beneficiaries and Public Benefit

The Charity takes great care to ensure that applications for residence in the care homes are considered fairly and without prejudice: based on actual assessed need and a new dependency tool. The majority of admission decisions are made and applied by individual Home Managers. Only exceptional cases relating to financial hardship are referred to Trustees for approval. Up to

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THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

30% of all placements are for non-freemasons, reflecting the diversity and added value to the wider community of our services.

The services provided are available to those with financial means or limited financial resources. The RMBI Care Co complies with the Charging for Residential Accommodation Guide (CRAG) issued by the Department of Health. The resident numbers are split broadly 60:40 into those who are self-funding and those who are placed and funded by Local Authorities.

Activities

The primary activity is the provision of 1,106 registered beds for residential, dementia and nursing care in the 17 Homes throughout England and Wales and 1 Home for people with a physical and or learning disability. The Charity employs around 1,500 staff to meet support and care needs.

Non-Operational Properties

In addition, the Charity runs approximately 64 non-operational properties, including some sheltered units for those who seek independence with minimal care provided.

The charity holds the freehold of 19/20 Great Queen Street, which were the former head offices. Through a Special Purpose Vehicle with Latis Homes, the Stability Investment Limited, a subsidiary, was established to build four apartments for sale and the offer of a leasehold shop front. Walker Slater remain the leasehold shop front at 19 Great Queen Street, with one apartment sold and the three remaining to be marketed for sale in 2021/22.

Impact Report

The Charity publishes an annual Impact Report, which is available on our website.

Key Performance Indicators (KPIs)

Dashboard KPIs across all the RMBI Care Co services have been introduced as a means for the Board to monitor progress in all key areas of the business. Overarching dashboards for Operations, HR, Finance and Property are in place, including health & safety requirements and monitoring. Monthly Performance Targets on Occupancy and Staff Spend are set with monthly KPI targets.

Valuing Our Staff

The culture and values of the charity remain underlined by the core values of being Kind, Supportive and Trusted.

All Directors ensure they have regular team meetings to provide their functional teams with an understanding of our financial performance and strategic business plans. In addition to this, there are a number of internal communication approaches including bi-monthly virtual staff newsletter, which includes key updates from the Managing Director.

There are two staff forums both chaired by the HR Director, meeting at least twice a year. The one for our Homes based staff is a group of nominated individuals from all locations representing colleagues, and is attended by members of the senior management team as well as the Managing Director and Care Operations Director. The staff forum receives business updates including information on the Charity’s performance, sector comparisons, projects and other initiatives. The majority of the meeting is to listen to the staff representatives and receive their views, questions and suggestions. Our Head Office and National roles have a joint staff forum with colleagues from our Parent Charity, the Masonic Charitable Foundation, which is structured in the same way.

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THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Bi-annually we issue an Employee Engagement Survey to gain views and comments from our staff on their views of working for the Charity. The last survey was launched in 2019 and we were pleased to receive scores that reflect high engagement and in comparison to our sector scores that were above the median quartile and in some areas at the upper quartile level. In 2021 this objective was missed due to covid-19.

At Home level our Regional Operations Managers and HR Business Partners offer the opportunity for staff to meet them and discuss matters that are important to them via staff surgeries. Each Home Manager holds regular Staff Meetings to provide their teams with local home updates as well as gaining staff views.

Since 2014, we have had an employee recognition scheme in place called OSKAR which stands for “Outstanding Service Kindness and Respect”. Nominations are received from management, staff, relatives and residents where they explain the reason for nominating an individual and how they have demonstrated the principle of the award. These are reviewed each month by the Directors, who vote for a winner, who then receives a monitory reward. Each of the monthly winners are then reviewed to determine the annual winner, this individual also receives a monitory reward from the Charity in recognition of his/her outstanding contribution.

All employees receive an Employee Assistance Programme, which provides them with access to a range of health and wellbeing platforms, counselling support and discounts to a range of UK retailers.

Relationship with Suppliers and Contractors

Building strong relationships with suppliers and contractors enables the Charity to maximise the provision of services to our residents. Our Procurement, Development and Care Operation teams closely co-ordinate with the supply chain and develop deeper and strategic relationship with key suppliers and contractors.

Our suppliers and contractors are part of the Charity’s strategic decision-making process with regard to procurement and new build projects. We share insight into what our current and future residents want and our partnership with contractors and suppliers delivers success through value creation ensuring new services incorporate best practice, are fit for purpose, and as far as is practicable are future proofed.

The Charity ensures that the main suppliers and contractors are certified, IR35 compliant, having gone through a rigorous vetting process including quality, financial, sustainability and modern slavery checks in order to ensure that the right products and services are delivered to our care homes. The payment to suppliers and contractor are made well within the agreed credit terms.

Association of Friends and Volunteers

The Charity owes a great deal of debt and gratitude to the tremendous support and work of volunteers and the links each Home has with Associations of Friends. A big thank you is required to each and every one of the Freemasons and their families, who are members of the Associations of Friends who work very closely with our care homes throughout England and Wales. In more ways than it is possible to express here, each member provided comfort and reassurance to our residents; particularly those with minimal or no contact with relatives. The principal link with volunteers remains Doctor John Reuther, ably assisted by his wife Maggie. Thanks are due to both for their continued efforts throughout the year.

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THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Freemasonry Support

Acknowledgements and thanks are made to the wider support received from the freemasonry community in England and Wales. Through our parent company the Masonic Care Foundation (MCF), grant support is received annually to support freemasons and their dependents placed in our Homes and funded by Local Authority fees.

Special thanks in 2021/22 are made to the Provinces of Northumberland and South Wales who concluded Festival’s in support of the Charity.

Sharing Best Practice

At a national level, the RMBI Care Co continued to work closely with regulatory and representative bodies to ensure full awareness of all the latest developments in the sector. Links with research bodies exploring latest thinking in dementia care and the advent of digital technologies are being pursued (including the introduction of hand-held smart phone technology for care workers). Through our trade associations, Care England and ARCO the RMBI Care Co keeps up to date with current policy and thinking in the social care and retirement community sectors.

Plans for the Future – Vision Statement until 2046

During 2021/22 the Board and Executive have agreed a Vision for the Charities next twenty years which will see an investment in new Care Homes as some of our existing portfolio requires replacing, a decision to enter the retirement community market with our first build, and for the first time a pilot project in the North-West to offer grant support to our Beneficiaries to purchase care in a Care Home of their choice.

In 2022/23, the Charity will be looking to raise investment via a Retail Charity Bond to fund the next steps of our development plans.

Donations and Fundraising

Every pound donated to the RMBI Care Co goes towards looking after the people who use our services. Additionally, we cannot forget staff members in the Homes who continue to do a fantastic job supporting the RMBI Care Co through organising various fundraising activities, demonstrating that every penny really does count.

Legacy Gifts

Legacy gifts contribute a significant amount to our charitable income and are gratefully received.

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THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Investment Performance

The parent charity, Masonic Charitable Foundation (MCF), global investment strategy seeks to protect the capital value of investments that are required to fund operations for a two-year time horizon (the “Cash Reserve”) and to invest all remaining funds for long term growth, on a total return basis, with an overall objective of making a return of RPI plus 3% net of all expenses.

The Cash Reserve is provided by Royal London Asset Management 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:

The Charity 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 form 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 diversification, 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 in Northern Trust.

The asset allocation for the CAIF was amended on 1st April 2019 by the investment committee following advice from Asset Risk Consultants. The strategic and actual asset allocations as at 31st March 2022 are shown in the following table:

Asset Class Strategic
Allocation		 Benchmark Actual 31st
March 2022
Cash 0.00% SONIA 3.20%
Fixed Income 7.50% FTSE UK World Gov. Bond Index GBP 4.40%
International Equity 28.75% MSCI World ex UK NR GBP 56.40%
Int’nl Equity GBP hedged 12.00% MSCI World ex UK Hedged NR GBP 3.40%
U.K. Equity 18.00% MSCI UK Equity NR GBP 18.50%
Emerging Market Equity 12.50% MSCI Emerging Markets Equity NR GBP 2.80%
Global Equity Hedge 13.75% HFRX Global Equity Hedge GBP 0.00%
Alternative Investments 3.75% HFRX Global Hedge Fund GBP 7.80%
Property 3.75% IA UK Direct Property TR 3.50%
100.00% 100.0%

In order to balance property exposure across the Group, some of the subsidiary charities also made direct investments into the CCLA property fund.

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THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Performance under the new arrangements is shown in the following table:

MCF CAIF RLAM
Short Term		 RLAM Cash
Plus		 RLAM
Enhanced		 CCLA
Fund at 31stMarch 2022 £21.273 M £0.114 M £1.066 M £0.335 M £0.0 M
Investment approach Steady
Growth Multi-
Asset		 Capital
Protection		 Capital
Protection		 Capital
Protection		 Income &
long-term
Capital
Growth
Benchmark Composite SONIA SONIA SONIA MSCI/AREF
UK other
balanced
property
Peer Group ARC Charity
GBP Steady
Growth		 None None None ARC Charity
GBP Steady
Growth
Return for the year 10.30% 0.13% (0.09)% (0.65)% 19.30%
Benchmark return for
year		 9.80% 0.14% 0.14% 0.14% 9.70%
Peer group return for
year		 7.10% N/A N/A N/A 7.10%
3 year return 33.00% 0.38% 0.64% 0.80% 27.00%
3 year benchmark 26.90% 0.28% 0.28% 0.28% 2.50%
3 year peer group 22.40% N/A N/A N/A 22.40%

The CAIF has continued to perform strongly during the year, hitting a peak of just over £133.00 per unit at 31st December. It fell back in the final quarter due to geopolitical and inflationary concerns, but received strongly in the latter part of March. As at 31st March 2022, the CAIF was valued at £129.73 per unit.

Streamline Energy and Carbon Reporting

The following table summarises the RMBI Care Company (RMBICC) reporting requirements under the Government’s Streamlined Energy and Carbon Reporting (SECR).

UK Greenhouse gas emissions and energy use data for the
period 1 April 2021 to 31 March 2022		 Current Year
2021/22		 Previous year
2020/21		 Units
Energy Consumption used to calculate emissions 27,110,152 27,465,824 kWh
Energy Consumption break down
Gas 21,453,840 21,865,671 kWh
Electricity 5,273,167 5,245,156 kWh
Purchased Fuel(Generators) 5,106 7,473 kWh
Transport fuel 226,958 254,747 kWh
Business travel in employee-owned vehicles 151,081 92,777 kWh
Scope 1 emissions
Gas consumption 3,929 4,020 tCO2e
Owned transport 55 63 tCO2e
Other Fuel(generators) 1.2 1.7 tCO2e
Scope 2 emissions
Purchased electricity 1,120 1,223 tCO2e
Scope 3 emissions
Business travel in employee-owned vehicles 37 23 tCO2e
Total Gross emissions 5,142 5,331 tCO2e
Intensity Ratio 4.85 4.76 tCO2e/FTE

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THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Methodology

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used 2021 UK Government's Conversion Factors for Company Reporting.

Like last year, the energy data for (3 flats for 20 Great Queen Street) was not provided and for 2021/22 this has been estimated. In addition, some of the grey fleet fuel types were not provided and approximately 3,743 business travel miles have been converted using ‘Unknown’ as the fuel type. The same applies to the type of car, with ‘Average Car’ type being used.

Intensity ratio

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO 2e per full time equivalent (FTE) employee. During 2021/2022 the number of FTE for RMBI was 1,060.

Energy efficiency Actions

Since March 2019, RMBI has been working with Lantern (UK) Ltd as their trusted sustainability partner. Our sustainability strategy was adopted and signed by the Board of Trustees in April 2022 and it is available upon request.

Our overall emissions for 2021-22 slightly decreased compared to the previous year, and this is mainly due to a slight reduction of energy use (electricity, gas and generator fuel) across our estate. However, we have noticed the increased mileage on our business travel (grey fleet) linked to the end of Covid-19 work travel restrictions. The use of fuel for our generators is once again estimated based on the number of hours per year the generators are turned on for testing.

Over this reporting year, we have fitted one of our care homes (Cadogan Court) with thermostatic radiator valves (TRVs) to ensure that radiators can be turned down and used as and when needed. We have also replaced the calorifier in Cornwallis Court with the aim of reducing the energy used for hot water provision.

For 2022/23, we hope to work towards understating our water consumption and including more Scope 3 emissions as part of our SECR submissions. We also want to improve our measuring and monitoring of environmental impacts, especially relating to our fleet and business travel.

Section 172 (1) Statement

As outlined under various sections of this report, the Trustees of the Charity are well aware of their duty under section 172 of the Companies Act 2006 to act in the way which they consider, in good faith, would be most likely to provide the success of the Charity for the benefit of its members as a whole and, in doing so, to have regard (among other matters) to:

16

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Financial Review

The summary Statement of Financial Activities for the year ended 31 March 2022 is set out below.

Income

The total incoming resources amounted to £54.3m (2020/21: £58.1m). The major streams of income are detailed below:

Streams of income 2021/22
£m		 % of
income		 2020/21
£m
Income from Residents’ Fees 43.8 81% 42.1
Donations, Legacies and Grants 9.4 17% 14.6
Investment & Other Income 1.1 2% 1.4
Total 54.3 100% 58.1

A total of £120k (2020/21: £126k) was spent in generating donations and investment income.

Resources Expended

Operating expenditure for the year amounted to £60.3m (2020/21: £58.8m) whilst the Governance costs amounted to £0.8m (2020/21: £0.7m).

In our care homes and throughout the social healthcare sector, complexity in the care needs of residents has been increasing. In addition, ongoing regulatory changes have driven a need for higher staffing levels to ensure provision of safe and high quality care. The industry-wide difficulty in recruiting qualified care staff has also contributed to an increase in the operating costs. As a result of our continual effort to deliver efficiency improvements and operational controls, the cost of providing care during this financial year showed a below inflation increase of 2% to £61m.

Net Operating Position

Net operating deficit of the RMBI Care Co amounted to £4.65 million (2020/21; surplus of £3.7m). In addition, the actuarial gain on the defined benefit pension scheme amounted to £1.87m (2020/21: £0.07m).

The overall net movement in funds for the year was an outflow of £2.7 million (2020/21; inflow of £3.8m).

Capital Development

During 2021/22 £6.4 million (2020/21: £6.8m) was spent on capital programmes.

The significant project expenditures during the year were:

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THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

COVID-19 and the Post Balance Sheet Impact:

In 2021/22, despite the ongoing challenge of the COVID-19 pandemic, Charity continued to deliver its strategy, whilst planning for a world beyond the pandemic. During the financial year, the income from Charitable Activates increased by 4%. The donations through our parent Charity and Infection Control grants amounts to 17% of the total income of £54.3m. In our care homes and throughout the social healthcare sector, complexity in the care needs of residents has been increasing. In addition, ongoing regulatory changes have driven a need for higher staffing levels to ensure provision of safe and high quality care. The industry-wide difficulty in recruiting qualified care staff has also contributed to an increase in the operating costs. As a result of our continual effort to deliver efficiency improvements and operational controls, the cost of providing care during this financial year showed a below inflation increase of 2% to £61m.

The Trustees have evaluated the impact of the pandemic on the operations of the charity, which is to provide residential care, nursing care and residential dementia support to older Freemasons, their families and people in the wider community.

The Trustees do not consider there to be any going concern issues and for this reason the financial statements have been prepared on a going concern basis.

Principal Risks and Mitigation

The principal risks identified and agreed actions to mitigate are shown in the following table:

Risk Consequence Mitigation - Likelihood Mitigation - Impact
1 Recession and
significant
increase in
inflation		 Costs substantially out
strip income and
supply chains
consequences.		 Fixed term deals on utilities,
early move to market to
borrow on fixed rates,
contingency to up local
wages on business case
validation, retention of
reserves, and pace of
development monitored
and relatives. Pre-screening
processes to monitor Home
staff and visitors as
appropriate.		 Aligning fee increases to
remain competitive against
costs. Global and National
situation to monitor with many
events beyond control.
2 Government
Legislation – Build
Back Better		 Significant disruption
to the sector with high
level of Home
Closures operating in
a new system which is
financially unfunded		 2-year period to review the
detail and implementation
model. Ability to focus on
greater number of private
placements.		 Unknown at this juncture.
Local Authorities’ will look to
offer a Fair Price of Care with
families to top up – Many
providers believe families will
look to purchase care
regardless of any capping.
3 Pandemic and / or
Epidemic
Outbreak		 Rapid transmission of
illness / physical
impacts.
Significant reduction
in operational staff,
business critical
partners and external		 Continuity Plan Group (CPG)
to manage, monitor and
regularly review response to
pandemic outbreak.
Response protocols,
Contingency Plans and
Business ContinuityPlan to		 Safe internal and external
visiting spaces for residents
and relatives. Pre-screening
processes to monitor Home
staff and visitors as
appropriate.

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THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

FOR THE YEAR ENDED 31 MARCH 2022
services leaving the
service unsafe for
residents.
Loss of life resulting in
reduced occupancy,
psychological impacts,
loss of reputation,
financial impacts, loss
of Home.
Insufficient provision
of medical support
increasing impacts of
pandemic.		 be in place, up to date and
regularly reviewed.
Procurement team to
manage and maintain
sufficient stocks of basic
PPE.
Business Critical Partners /
Supplier continuity plans
known and kept up to date.
Isolation and zoning
procedures in place.
Management of staff and
agency staff movement
between different
provisions.
Safe internal and external
visiting spaces for residents
and relatives. Pre-screening
processes to monitor Home
staff and visitors as
appropriate.
4 Insurance and
legal risks due to
pandemic		 Insurance markets
review of risk and
premium linked to
future cover and
exposure to covid-19
litigation
Poor infection control
procedures and
placing Residents and
Staff at unnecessary
risk		 Undertaking of challenging
audit session with our
Insurers and Broker during
November 2020 to risk
assessment all our
pandemic actions – to
consider undertaking again
if requested by insurer –
Insurance Market remains
volatile and risk adverse to
social care		 Confidence of our actions
evident in January 2021
meeting with broker on
assessing next year’s insurance
cover and needs – no major
claims in the subsequent 9
months. – no immediate
requirements to repeat this
exercise for 2022
5 Financial viability
as a result of
Covid-19		 Consequence of
infection and adverse
media coverage of the
social care sector
leads to dramatic drop
in occupancy and
demand for
placements.		 Budget remains in recovery
mode with key assumptions
in 2022/23 on occupancy
and staff costs to be
confirmed		 Proactive stance on marketing
through UGLE, MCF, and
launch of new website backed
up with positive news stories
on innovative thinking
including visitor rooms. New
video’s marketing each Home.
6 Loss of / negative
impact on Head
Office and
National Team
Function		 Covid-19 crisis and
lock down Poor
communication
platforms Lack of
supporting IT
equipment to enable
continued
functionality of
National and Head
Office Teams		 Excellent planning to
implement video
conference calling, roll out
of laptops, and well-being
strategies.		 Productivity and culture
change extremely positive
backed up by good
communication strategy,
Keeping Strong Together (KST)
- Managing Director’s regular
update.

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THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

FOR THE YEAR ENDED 31 MARCH 2022
Loss of Head Office.
Immediate loss of
access to Head Office
and Care Homes.
7 Reduced
occupancy –
COVID-19		 Reducing demand for
residential care
increasing demand for
dementia and nursing.
Reduction in income
forecast to be c£6m if
occupancy drops as
low as 70.3% i.e.777
placements in light of
the Covid-19 crisis and
subsequent tightening
of local authority
funding of new
placements.
Actual is now c85%
Poor reputation
Loss of provision due
to lack of income
Staff redundancy /
relocation		 Strong communication with
the freemasonry
communities through UGLE,
MCF, PGM’s and pro-active
statements on website.
Investment in partitioned
visitor rooms, redecoration
programme, and increasing
wet rooms at 6 homes.
Priority to increase
dementia beds where
possible.		 Close tracking of enquiry
activity by our Placement
Officer and maximising of
Government support grant
New website launched in
August 2020 to further
promote the charity and
offering.
Good Marketing and Enquiry
interest seen during 2021
8 Staff and
Contractor Loss		 A perfect storm in the
social care sector and
risk of vacancies rates
not seen before.		 Package of incentives for
attracting staff and retaining
as an employer of choice
being constantly reviewed		 Review of staff paying over the
next 5 years to achieve uplifts
above the rate of inflation and
an immediate bonus in 2021 to
acknowledge and value
employees – 2% pay uplift in
2022
9 Unprecedented
increase in utility
Costs		 National shortage of
Energy supplies and
ripples in the market
pricing.		 Fixed priced contracts for
electricity and gas supplies.		 In 2022 introducing a strategy
for sustainable energy with
solar panels.
10 Loss of life, serious
injury, prosecution
due to major Fire
Safety incident /
failure to adhere
to policies,
procedures, fire
safety regulations		 Loss of life or serious
injury.
Prosecution under the
Regulatory Reform
(Fire Safety) Act and
other related
legislation in relation
to fire prevention and
Health and Safety.		 Up to date and appropriate
fire safety management
policies and procedures in
place.
Annual fire risk assessment
undertaken by independent
fire safety consultant.
Regular training for all staff
within the Homes and
offices in fire prevention
and incident response.
Contractor induction and
management system in
place, supported by a
permit to work system to		 Regular training for all staff
within the Homes and offices in
fire prevention and incident
response.
Regular fire drills conducted
within the Homes and offices.
Fire safety systems installed,
repaired, maintained and
serviced as appropriate by a
competent person to current
British Standards.
A review of fire safety
equipment to ensure both
compliance and suitability for
the environment.

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THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

FOR THE YEAR ENDED 31 MARCH 2022
ensure continued fire safety
compliance.
Fire log books are
completed / maintained by
Facilities supported by
Property and regularly
audited.
Regular Home visits by the
HSSO to monitor fire safety
within the Homes.
Fire Risk Assessment and
drills monitored and
communicated via the
monthly H&S dashboard.
Hazardous substances
stored in line with CoSHH
assessment / hazardous
substances guidelines.
Gas and electrical supplies
managed in accordance
with current legislation and
bestpractice.		 All workplace equipment
tested, serviced and
maintained as appropriate and
required by a competent
person.
Fire safety equipment installed
in each Home / office to ensure
that it is suitable for the
environment.
11 Serious illness,
prosecution due to
failure to adhere
to Asbestos
Management
policies,
procedures and
regulations		 Serious / long-term
impact to human
health (residents /
Staff / visitors /
contractors).
Denial of access to
buildings.
Prosecution under the
Control of Asbestos
Regulations and other
related legislation in
relation to Health and
Safety.
Prohibition or
improvement notices,
reputational damage,
temporary to long-
term loss of service.		 Annual risk assessment
conducted by independent,
external asbestos
consultants.
Regular review of asbestos
condition by Facilities
teams. Contractor
induction.
Copy of asbestos register
available for use by
facilities, property and
contractors.
Confirmed and suspected
asbestos containing
materials identified and
managed as appropriate in
accordance with current
legislation.
All intrusive contractor
works require a
refurbishment and
Demolition survey prior to
works where one have not
been performed previously.		 All existing and new Facilities
team members are asbestos
management trained.
Asbestos management plan
and emergency procedures in
place and maintained by
Property and Asbestos
Management Consultants.
Full asbestos management
surveys conducted in the
majority of Homes.
All contractors to be a
minimum asbestos aware
trained before commencing
any works on site.
12 Data Protection
and General Data
Protection
Regulations 2018		 Financial: Cost of
recovering key and
sensitive information
and penalty fine up to
£500,000.		 Clear guidelines have been
produced for all members of
staff. The Data Protection
Policy is included in the
Employee Handbook. Staff		 Laptops are encrypted for data
protection.
Shredding boxes lock
protected. Extra backup servers
implemented at IP Technology.

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THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

FOR THE YEAR ENDED 31 MARCH 2022
Reputational:
Negative publicity
surrounding inability
to protect systems
and confidential data.
Operational: Time
taken to investigate,
contact family or
relatives of those
whose data has been
breached / lost.		 are aware of data
protection policies and
procedures in place as well
as potential disciplinary
action that may be taken.
Staff are required to sign a
confidentiality agreement
upon hiring.
MPLS system has been set
in place to enhance network
security between Head
office and Homes.
Shredding boxes provided
and staff are aware which
data is sensitive and must
be disposed of correctly.
Privacy notices and updated
Data Protection Policy
issued to all staff in May
2018 in line with new GDPR.
All staff required to
undertake GDPR e-learning
as part of mandatory
training. Enhanced
classroom training being
delivered at Homes.
Trustees also required to
undertake e-learning		 Confidential Residential
information is stored protected
in the iCare and eMM system.
MPLS network provides
enhanced network security
therefore providing increased
security for confidential data.
Head Office GDPR audit
undertaken with some areas
needing focus.
Internal auditors check in place
at Homes
13 Building failure
due to age of Care
Home in
Berkshire.		 Extension of time to
maintain the existing
building and deal with
an administration
process for the new
build		 A brand new Care Home is
being built and expected to
be operational in 2022.
Continued maintenance and
servicing of existing Home
to prevent catastrophic
failure.
The builder going into
liquidation on the new build
has become real with the
main contractor Castleoak
went into administration
and the site transferring to
the liquidator.
The site acquired back from
the liquidator in 3 days and
new contractor appointed
and the new Home is
expected to be fully
operational and open for
admissions in September
2022		 Keep old building maintained
and install isolation valves to
pipework until September
2022.

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THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

FOR THE YEAR ENDED 31 MARCH 2022
14 Loss of life, serious
injury, prosecution
due to failure to
adhere to Health
and Safety
policies,
procedures,
regulations		 Increase in accidents
at work resulting in
personal injury or
death.
Reputation risk.
Increased risk to
Residents / Visitors /
Contractors /
Stakeholders.
Lack of proactive
actions resulting in
major / critical
incidents.
Poor or no incident
response resulting in
serious loss / death.
Loss of reputation
resulting in
prosecution,
improvement /
prohibition notices.		 Health and Safety Director
in role.
All SLT undertake IOSH
training for Executives /
Directors.
Home Management teams
including Home Manager
and Facilities Manager
attending relevant IOSH
training.
Health and Safety
Committees now
established at each Home
with Health and safety
policies reviewed and
updated and included in
induction programme.
DSE and lone working
checks regularly
undertaken.
Moving and Handling as
part of Mandatory Training
Programme.
Fire and evacuation training
in place and part of
Mandatory Training
Programme.
Contractor management
procedures in place.
Additional internal care
auditor with both auditors
reviewing health and safety
matters as part of care audit
visits.
Weekly, monthly and
quarterly health and safety
checks in each home.
Trustee representative in
place to support governance
and compliance.
Safe systems of work
reviewed and maintained at
regular intervals by relevant
personnel, supported by
H&S		 Policies and procedures in
place covering legal
requirements and supporting
positive H&S working practices
and culture.
H&S Support Officer
undertakes regular support and
audit visits to all Homes.
Internal audit process to
monitor and evaluate the
effectiveness of property
services and service companies
and report on findings.
Effective communication with
the Senior Management team,
Senior Leadership team and PR
Team.
Insurance co. Insurance policies
to underwrite any claims.
Marketing to handle via PR
company.
15 Clinical care error
leading to injury
and death of a
resident		 Impact on the health
and wellbeing of a
resident or group of
residents. Extreme		 Homes - Home Managers to
take responsibility for day-
to-day care management
within the Home ensuring		 Internal audit process to
monitor and evaluate the
effectiveness of care services
and report on findings. Local

23

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

FOR THE YEAR ENDED 31 MARCH 2022
impact leading to
death of resident or
group of residents.
Breach of regulatory
requirements and
duty of care.
Prosecution, civil
claims, poor
reputation		 that staff are appropriately
trained and competent to
deliver safe, responsive and
effective care. Clinical and
care errors to be
appropriately managed,
reported and referred to
healthcare professionals in
order to seek appropriate
professional input and
guidance for managing and
supporting residents
effectively. Care records to
be kept up-to-date to reflect
residents current needs and
to ensure appropriate
referral to healthcare
professionals where
required.		 homes to carry out
assessments of care practice
and audits to ensure good
practice is in place and
followed by staff at all times.
Robust reporting of issues and
concerns to make sure a quick
response to concerns is in
place. Effective communication
with the senior management
team to make sure issues and
concerns are alerted as soon as
possible to enable effective
management of sh.
16 Failure to meet
service
performance and /
or regulatory
requirements.		 Negative CQC/CIW
reports
Prosecution and / or
enforcement action
Adverse reports, poor
publicity / reputation		 Ensure an effective process
for responding to regulatory
reports is in place. Action
plans to be completed as
soon as possible by the
home to address any
shortcomings identified. 17
Homes enjoy current fully
compliance reports with on-
going auditing and quality
checks with scrutiny from
the Care & Quality
Committee.
Continuous monitoring and
support delivered by
internal Quality and
governance team.		 Ensure a robust legal challenge
as appropriate. Implement an
effective PR response as
required. Regular Service
improvement meetings to be
held to ensure that Senior
Management team are focused
on progress to achieve
compliance. Regional
Managers to conduct Bi-
monthly audits in each home
so that they are able to detect
early any shortfalls in service
and prioritise resource
accordingly.
17 IR35 (off payroll-
working)
legislation		 The Charity would
have liability for the
processing of tax and
national insurance for
the individual and
would receive a fine
and required to make
full payment of
outstanding
unprocessed tax and
national insurance
liability		 Assess all contracted
suppliers, including agency
workers, maintenance and
facilities contractors, to
determine the supply of
services and their status		 Established clear policy and
procedures for all future
contracts and supply of
services to ensure IR35
compliant
18 IT & Digital
Technology		 Business failure and
threat to the
operations		 Contract arrangements have
been reviewed to determine
best value for moneyand a		 Monthly IT & Digital Meetings
ensure an overview of issues is
maintained

24

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

D FINANCIAL STATEMENTS
NDED 31 MARCH 2022
rolling contract remains in
place with 24-month- notice PRISM external Auditors
to either side. appointed to undertake audit
and review of cyber security
risks

Tangible Fixed Assets

The Charity’s tangible fixed assets consist of freehold and leasehold land and buildings, vehicles, furniture and equipment. Land and buildings are shown at the original cost to the Charity less depreciation, whilst investment property was valued at open market rates.

In the opinion of the Directors, if the properties were to be sold the total realisable sale values are likely to exceed the net book value indicated in the accounts.

Investment Policy

The parent charity, Masonic Charitable Foundation (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 form 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 diversification, 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 in Northern Trust.

The asset allocation for the CAIF was amended on 1st April 2019 by the investment committee following advice from Asset Risk Consultants.

The global investment strategy seeks to protect the capital value of investments that are required to fund operations for a two-year time horizon (the “Cash Reserve”) and to invest all remaining funds for long term growth, on a total return basis, with an overall objective of making a return of RPI plus 3% 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, Supranational and mortgage-backed securities.

The performance objectives of the three funds are:

Reserves Policy

The Directors reviewed the reserves policy on a regular basis. The funds available to the RMBI Care Company were created over many years and the income derived from the investment portfolio is an important element in securing the longer-term operating and capital expenditure requirements of the Charity.

Group unrestricted reserves (after taking into account the pension scheme surplus) amounted to £113.5m (2020/21: £115.9m), of which the Trustees designated £67.2m (2020/21: £68.1m) in the

25

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Fixed Asset and New Building Funds. This leaves undesignated reserves of £42.3m (2020/21: £45.8m), which is equivalent to approximately 9-month charitable expenditure.

The residual funds are adequate to meet the ongoing operational requirements of the Charity.

Subsidiary Funds and Connected Charities

The Charity administers a range of “Restricted” and “Endowment” funds as detailed in Note 15, with a total value of £4.4m (2020/21: £4.7m).

The Charity was also represented on the Boards of RMBI Trading Ltd, Stability Investments Ltd (project development), RMBI Settlement Ltd (purchase welfare services) and 19/21 GQS Limited (property operations).

Statement of Trustees Responsibilities

The Trustees (who are also the Directors of Royal Masonic Benevolent Institution Care Company for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law 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 charitable company and the group and of the incoming resources and application of resources, including the income and expenditure of the group for that period. In preparing those financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the charitable company and the group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Insofar as the Trustees are aware:

26

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Auditors

The auditors, Knox Cropper LLP, have expressed their willingness to continue in office for the following year.

Acknowledgements

The Directors wish to extend their thanks to all the supporters, friends and staff of the RMBI Care Co who have sustained its work by their interest and generosity.

On behalf of our Chairman, I would like to thank my fellow Directors for the significant amount of time, energy and expertise they give to the RMBI Care Co. Their contribution makes a huge difference and helps to ensure that we remain one of the leading care providers in the not-for-profit sector and a provider of choice amongst the Masonic Community.

Approved by the Board of Directors and signed on their behalf by:

VW Bro John Boyington CBE

Chairman

W Bro S Radia

Director

Approved on 10[th] June 2022

27

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY

Opinion

We have audited the financial statements of Royal Masonic Benevolent Institution Care Company (the ‘charitable company’) and its subsidiaries ('the group') for the year ended 31 March 2022 which comprise the consolidated statement of financial activities, the consolidated and charitable company's balance sheet, the 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 applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the 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 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 charitable company’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.

28

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY

Our opinion on the financial statements does not cover the other information and we do not express any form 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 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the charitable company 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 respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement in the Trustees' Report, 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 company’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 company or to cease operations, or have no realistic alternative but to do so.

29

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditors/auditassurance/auditor-s-responsibilities-for-the-audit-of-the-fi/description-of-theauditor%E2%80%99s-responsibilities-for . This description forms part of our auditor’s report.

30

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY

Use of our report

This report is made solely to the charitable company’s members, as a body, 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 company’s members those matters we are required to state to them in an auditor’s report and for no other purpose.

To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report or for the opinions we have formed.

…………………………………………….. Stephen Anderson (Senior Statutory Auditor)

For and on behalf of: Knox Cropper LLP Chartered Accountants & Statutory Auditors 153-155 London Road Hemel Hempstead Hertfordshire HP3 9SQ

10[th] June 2022

31

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31ST MARCH 2022

INCOME
Income from Charitable Activities
Income from Other Trading Activities
Income from Investments
Donations & Legacies
Net gain/(Loss) on disposal of fixed assets
TOTAL INCOME
EXPENDITURE:
Expenditure on Raising Funds
Expenditure on Charitable Activities
TOTAL EXPENDITURE
Net Income/(Expenditure) before investment Gains/(loss)
Net (loss) / Gain on investment assets
Net Income / (Expenditure)
Transfers between funds
Net incoming /(outgoing) resources
Other recognised gains / losses
Actuarial Gain on defined benefit pension scheme
NET MOVEMENTS IN FUNDS
Fund balances brought forward at 1st April
Fund balance carried forward at 31st March		 Notes
2
3
4
5
6
7,8
11
19		 Group
Unrestricted
funds
2022
£'000
43,712
467
823
9,161
(179)		 Group
Restricted
funds
2022
£'000
112
-
-
207
-		 Group
Total
2022
£'000
43,824
467
823
9,368
(179)		 Group
Unrestricted
funds
2021
£'000
42,044
447
973
14,344
-		 Group
Restricted
funds
2021
£'000
4
-
1
314
-		 Group
Total
2021
£'000
42,048
447
974
14,658
-
58,127
(126)
(59,528)
(59,654)
(b
(1,527)
5,226
3,699
-
3,699
72
3,771
116,907
120,678
53,984 319 54,303 57,808 319
(120)
(60,801)		 -
(195)		 (120)
(60,996)		 (126)
(59,215)		 -
(313)
(60,921) (195) (61,116) (59,341) (313)
(6,937)
2,156		 124
-		 (6,813)
2,156		 (1,533)
5,226		 6
-
(4,781)
429		 124
(429)		 (4,657)
-		 3,693
125		 6
(125)
(4,352)
1,876		 (305)
-		 (4,657)
1,876		 3,818
72		 (119)
-
(2,476)
115,935		 (305)
4,743		 (2,781)
120,678		 3,890 (119)
112,045 4,862
113,459 4,438 117,897 115,935 4,743

All amounts derive from continuing activities.

The notes on pages 35 to 50 form part of these accounts.

32

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY

(Charity no. 1163245, Company no. 1293566)

CONSOLIDATED BALANCE SHEET

AS AT 31ST MARCH 2022

Notes
FIXED ASSETS
Tangible assets
9
Investments
11
CURRENT ASSETS
Debtors and prepayments
12
Short term deposits
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
13
NET CURRENT ASSETS
NET ASSETS BEFORE PENSION ASSET
RMBICC defined benefit scheme asset / (liability)
19 (g)
NET ASSETS AFTER PENSION ASSET
FUNDS:
Unrestricted funds
- Designated funds
14.1 & 14.2
- Accumulated fund
14.1 & 14.2
Unrestricted funds before Pension surplus
RMBI defined benefit scheme net surplus
19 (g)
Unrestricted funds after Pension surplus
Restricted funds
15
Endowment funds
15
TOTAL FUNDS		 RMBICC
Group
RMBICC
Group
31st March
31st March
31st March
31st March
2022
2022
2021
2021
£'000
£'000
£'000
£'000
65,296
76,838
67,326
76,546
32,417
32,417
36,476
36,476
97,713
109,255
103,802
113,022
18,479
5,783
15,119
5,446
257
257
93
93
3,967
4,237
5,202
5,462
22,703
10,277
20,414
11,001
(5,301)
(5,594)
(4,557)
(5,391)
17,402
4,683
15,857
5,610
115,115
113,938
119,659
118,632
3,959
3,959
2,046
2,046
119,074
117,897
121,705
120,678

67,227
67,227
68,073
68,073

43,450
42,273
46,843
45,816
110,677
109,500
114,916
113,889
3,959
3,959
2,046
2,046
114,636
113,459
116,962
115,935
4,357
4,357
4,497
4,497
81
81
246
246
119,074
117,897
121,705
120,678

The financial statements on pages 32 to 50 were approved by the Trustees on 10th June 2022.

and signed on their behalf by:

----- Start of picture text -----
Chairman (VW Bro J Boyington CBE)
Director (W Bro S Radia)
----- End of picture text -----

The notes on pages 35 to 50 form part of these accounts.

33

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY

(Charity no. 1163245, Company no. 1293566)

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 31ST MARCH 2022

Net income / (expenditure) for the reporting period
Adjustments for:
Depreciation
(Gains) / Loss on disposal of fixed assets
Investment Income
Defined Benefit Pension Scheme
(Increase) / Decrease in debtors
(Decrease) / Increase in creditors
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Dividends and interest from investments
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of investments
Proceeds from sale of investments
Net cash provided by (used in) investing activities
Change in cash and cash equivalents 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		 RMBI
Group
2022
2022
Notes
£'000
£'000
(6,663)
(6,813)
3,920
3,911
31
179
(935)
(935)
(37)
(37)
(3,360)
(337)
744
203
(6,300)
(3,829)
935
935
(1,940)
(6,401)
19
2,019
(289)
(289)
6,504
6,504
5,229
2,768
21
(1,071)
(1,061)
21
5,295
5,555
21
4,224
4,494		 RMBI
Group
2022
2022
Notes
£'000
£'000
(6,663)
(6,813)
3,920
3,911
31
179
(935)
(935)
(37)
(37)
(3,360)
(337)
744
203
(6,300)
(3,829)
935
935
(1,940)
(6,401)
19
2,019
(289)
(289)
6,504
6,504
5,229
2,768
21
(1,071)
(1,061)
21
5,295
5,555
21
4,224
4,494		 Group
2021
£'000
(1,527)
3,737
-
(978)
(44)
(524)
374
21
21
21
1,038
978
(7,746)
2,222
(477)
2,328
5,229
2,768		 (2,695)
(1,071)
(1,061)
5,295
5,555
4,224
4,494		 (1,657)
7,212
5,555

34

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY (Charity no. 1163245, Company no. 1293566) NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2022

1. ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Royal Masonic Benevolent Institution Care Company meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

(b.1) The Trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern. The most significant areas of adjustment and key assumptions that affect items in the accounts are to do with the defined benefit pension scheme. The surplus on the scheme is determined by actuarial valuation. This involves making assumptions about discount rates, mortality rates etc. Due to the complexity of the valuation, the underline assumptions and long term nature of these schemes, the estimates are subject to uncertainty. Assumptions are based on the recommendations of the actuary.

Government grants from government agencies and similar bodies are recognised in the Statement of Financial Activities (SOFA) on a systematic basis over the period in which the Charity recognises expenses for the related costs for which grants are intended to compensate. The grant that imposes specified future performance-related conditions on the recipient is recognised in income only when the performance-related conditions are met. Grants received before the revenue recognition criteria are satisfied are recognised as a liability.

(c) Income

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

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that as a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executors intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

(d) 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. Expenditure is classified under the following activity headings:

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

35

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY (Charity no. 1163245, Company no. 1293566) NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2022

1. ACCOUNTING POLICIES (CONTINUED)

Funds held by the Institution are:

Fixed asset fund - To finance capital expenditure on properties and equipment.

New building fund - Amounts set aside to meet authorised future capital expenditure on the purchase, construction and equipping of new Homes and general improvements to existing Homes.

Victor Donaldson Fund is a restricted fund, loans from this fund have been classified as a Social Investment, as the loans are to provide financial assistance to its beneficiaries. Note 11 discloses movements in the outstanding loan balance. Interest is recognised on the redemption of the loan and is shown in note 2 to the account.

Investments are stated at market value at the balance sheet date. Realised and unrealised gains and losses are credited / charged to the Statement of Financial Activities on the valuations and disposals throughout the financial period.

Support costs have not been apportioned between unrestricted, restricted and endowment funds.

The RMBICC owns 100% of authorised and issued ordinary share capital of RMBI Trading Limited, RMBI (Settlement) Limited, 19/21 GQS Limited and of Stability Investments Limited. The financial results of these companies have been consolidated. Advantage has been taken of the exemption afforded by section 408 of the Companies act 2006 not to present a separate Income and Expenditure account for the Charity.

(i) 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.

(j) 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 accounts.

36

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY (Charity no. 1163245, Company no. 1293566) NOTES TO THE FINANCIAL STATEMENTS

(Charity no. 1163245, Company no. 1293566)

FOR THE YEAR ENDED 31ST MARCH 2022

1. ACCOUNTING POLICIES (CONTINUED)

(k) Creditors and Provisions

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.

(l) Financial Instruments

The charity 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.

Tangible fixed assets have been capitalised at cost or acquisition value and where assets have been donated, at their value at date of receipt.

In line with the revised FRS102, depreciation for freehold and leasehold properties (with a lease life of more than 50 years) have been provided on a straight line basis at rates between 2% to 10%, depending on its useful economic life of the component parts of properties.

Depreciation for Motor vehicles and Computers & equipment are depreciated on a straight line basis at a rate of 25% per annum. Furniture and equipment are depreciated at rates between 5% to 20% on a straight line basis for items which exceed £10,000 in value, individually or for groups of related assets.

The Charity contributes to a defined benefits scheme which was closed to new entrants on 4th September 1996. This scheme was closed on 30 September 2010 and all existing employees were transferred to the Group Personal Pension Scheme.

As the scheme is closed, and no further benefits are accruing to members, there is no current or past service costs charged in resources expended. The interest cost and the interest income are shown as a net amount of other finance costs or credits adjacent to interest. Actuarial gains and losses are recognised immediately in 'Other recognised gains and losses'.

The defined benefit scheme is funded, with the assets of the scheme held separately from those of the Charity, in a separate Trustee administered fund. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent currency and term to the scheme liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The resulting defined benefit asset or liability, net of the related deferred tax, is presented separately after other net assets on the face of the balance sheet.

For the defined contribution scheme the amount charged to the Statement of Financial Activities in respect of pension costs and other post retirement benefits is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.

37

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY

(Charity no. 1163245, Company no. 1293566)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2022

2. INCOME FROM CHARITABLE ACTIVITIES
Note
Residents' Fee Receivable
Financial assistance to the elderly (Loan interest)
3. INCOME FROM OTHER TRADING ACTIVITIES
Rental & Other Income
4. INCOME FROM INVESTMENTS
Dividends
Interest on cash deposits
Interest Income
5 DONATIONS, LEGACIES AND GRANTS
Donations
Infection control grants
Coronavirus Job Retention Scheme grant
Donations from the parent charity
Legacies		 Unrestricted
funds 2022
£'000
43,712
-
43,712
Unrestricted
funds
£'000
467
467
Unrestricted
funds
£'000
431
1
391
823
Unrestricted
funds
£'000
15
2,616
9
6,476
45
9,161		 Restricted
funds 2022
£'000
-
112
112
Restricted
funds
£'000
-
-
Restricted
funds
£'000
-
-
-
-
Restricted
funds
£'000
63
-
-
-
144
207		 2022
Total
£'000
43,712
112
43,824
2022
Total
£'000
467
467
2022
Total
£'000
431
1
391
823
Total
2022
£'000
78
2,616
9
6,476
189
9,368		 Unrestricted
funds 2021
£'000
42,044
-
42,044
Unrestricted
funds
£'000
447
447
Unrestricted
funds
£'000
512
-
461
973
Unrestricted
funds
£'000
19
2,670
229
11,300
126
14,344		 Restricted
funds 2021
£'000
-
4
4
Restricted
funds
£'000
-
-
Restricted
funds
£'000
-
1
-
1
Restricted
funds
£'000
52
-
-
-
262
314		 2021
Total
£'000
42,044
4
42,048
2021
Total
£'000
447
447
2021
Total
£'000
512
1
461
974
Total
2021
£'000
71
2,670
229
11,300
388
14,658
6. COST OF GENERATING FUNDS:
Cost of generating voluntary income
Investment management cost		 Staff
£'000
-
-		 Other
£'000
-
120
120		 Total - 2022
£'000
-
120
120		 Staff
£'000
-
-
-		 Other
£'000
-
126
126		 Total - 2021
£'000
-
126
- 126

38

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY

(Charity no. 1163245, Company no. 1293566)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2022

7. INFORMATION REGARDING EMPLOYEES AND TRUSTEES

Staff costs:
Wages and salaries
Social security costs
Pension costs
Total
The number of employees whose total employment benefits are greater than £60,000 are as follows:
60,001 to 70,000
70,001 to 80,000
80,001 to 90,000
90,001 to 100,000
100,001 to 110,000
110,001 to 120,000
120,001 to 130,000
130,001 to 140,000
140,001 to 150,000
150,001 to 160,000		 2022
£'000
29,704
3,124
773		 2021
£'000
30,076
2,328
763
33,601 33,167
No. No.
11
6
5
2
-
3
-
-
1
-		 14
6
5
1
-
3
-
-
-
1
28 30

Key management are the members of the Executive Management who received total employment benefits of £768k during the period (2020/21 - £744k).

Staff reorganisation costs, totalling £6k (2020/21 - £28k), have been accounted for in "Other staff costs" in note 8 to these accounts. Where appropriate, the reorganisation costs have been included in the bandings, above.

Contributions during the year to the Group Personal Pension Scheme for the above 28 employees amounted to £166k (2020/21 - £162k ).


).
Average number of full and part time employees:
Homes
Support
Marketing
Management and administration		 No. No.
1,009 1,069
21 21
3 2
27 27
1,060 1,119

No Trustee, or persons related to or connected by business to them, has received any remuneration from the Charity during the year. The total expenses reimbursed to the members of the Board of Trustees amounted to £5k (2020/21 - £2k), in relation to travelling and subsistence.

Trustees have taken out Indemnity Insurance and the cost to the Institution was £20k (2020/21 - £21k).

The number of Trustees receiving expenses was five (2020/21 - three).

8 CHARITABLE EXPENDITURE:

Staff Salaries, Social Security & Pension
Other Staff Costs
Agency staff costs
Catering supplies
Building maintenance and refurbishment
Light, heat, rates and water
Depreciation
Furniture and equipment
Cleaning and laundry
Insurance
Medical expenses
Other - restricted fund expenditure
Postage, telephone and stationery
Audit
Legal and professional fees
Interest Costs
RMBICC defined benefit pension scheme administration cost
Miscellaneous
Total		 Residential &
Care Homes
before
support costs
£'000
30,200
588
7,769
5,159
2,407
2,026
3,781
425
722
584
253
26
316
-
-
354
126
1,314
56,050		 Support costs
(Head Office)
£'000
2,777
52
-
-
54
37
122
7
16
121
-
-
77
-
18
-
-
914		 Sub - Total -
Residential &
Care Homes
with Support
Costs
Finan
cial
assist
ance
for
the
Gover
nance
Costs
£'000
£'000
£'000
32,977
-
624
640
-
-
7,769
-
-
5,159
-
-
2,461
-
-
2,063
-
-
3,903
-
8
432
-
1
738
-
-
705
-
21
253
-
-
26
-
-
393
-
-
-
-
77
18
-
-
354
-
-
126
-
2,228
-
20
60,245
-
751
Total
2022
£'000
33,601
640
7,769
5,159
2,461
2,063
3,911
433
738
726
253
26
393
77
18
354
126
2,248		 Total
2021
£'000
33,167
614
6,005
5,034
2,514
1,872
3,737
481
821
585
1,413
29
434
78
52
417
96
2,179
4,195 60,996 59,528

39

NOTES TO THE FINANCIAL STATEMENTS

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY

(Charity no. 1163245, Company no. 1293566)

FOR THE YEAR ENDED 31ST MARCH 2022

9.1 FIXED ASSETS FOR RMBICC

Tangible assets
COST:
At 31st March 2021
Additions
Purchase of Freehold
Disposals
At 31st March 2022
DEPRECIATION:
At 31st March 2021
Charge for the year
Purchase of Freehold
Disposals
At 31st March 2022
NET BOOK VALUE:
At 31st March 2022
At 31st March 2021		 Freehold
properties
£'000
98,064
1,215
-
(109)
99,170
(34,914)
(2,949)
-
60
(37,803)
61,367		 Long
leasehold
properties
£'000
791
51
-
-
842
(246)
(20)
-
-
(266)
576		 Motor
Computers &
Vehicles
Equipment
£'000
£'000
977
9,313
-
674
(25)
(851)
952
9,136
(898)
(5,761)
(48)
(903)
25
850
(921)
(5,814)
31
3,322		 Motor
Computers &
Vehicles
Equipment
£'000
£'000
977
9,313
-
674
(25)
(851)
952
9,136
(898)
(5,761)
(48)
(903)
25
850
(921)
(5,814)
31
3,322		 Total
£'000
109,145
1,940
-
(985)
110,100
(41,819)
(3,920)
-
935
(44,804)
65,296
63,150 545 79 3,552 67,326

9.2 FIXED ASSETS FOR THE GROUP

Tangible assets
COST:
At 31st March 2021
Additions
Purchase of Freehold
Disposals
At 31st March 2022
DEPRECIATION:
At 31st March 2021
Charge for the year
Purchase of Freehold
Disposals
At 31st March 2022
NET BOOK VALUE:
At 31st March 2022
At 31st March 2021		 Assets
Under
Freehold
Construction
properties
£'000
£'000
9,591
97,592
4,461
1,215
-
(2,148)
(109)
11,904
98,698
-
(34,813)
-
(2,940)
-
-
60
-
(37,693)
11,904
61,005		 Long
leasehold
properties
£'000
791
51
-
-
842
(246)
(20)
-
-
(266)
576		 Motor
Computers &
Vehicles
Equipment
£'000
£'000
977
9,313
-
674
(25)
(851)
952
9,136
(898)
(5,761)
(48)
(903)
25
850
(921)
(5,814)
31
3,322		 Motor
Computers &
Vehicles
Equipment
£'000
£'000
977
9,313
-
674
(25)
(851)
952
9,136
(898)
(5,761)
(48)
(903)
25
850
(921)
(5,814)
31
3,322		 Total
£'000
118,264
6,401
-
(3,133)
121,532
(41,718)
(3,911)
-
935
(44,694)
76,838
9,591
62,779		 545 79 3,552 76,546

10. CAPITAL COMMITMENTS FOR THE GROUP

On construction and improvement of Homes and other
capital expenditure:
- Expenditure contracted for
- Expenditure authorised but not contracted for		 Freehold
properties
£'000
891
1,068
1,959		 Long
leasehold
properties
£'000
-
-
-		 Vehicles
& computer
equipment
£'000
-
-
-		 31st March
2022
Total
£'000
891
1,068
1,959		 31st March
2021
Total
£'000
358
436
794

40

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE
(Charity no. 1163245, Company no. 1293566)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH 2022		 THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE
(Charity no. 1163245, Company no. 1293566)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH 2022		 COMPANY
11. FIXED ASSETS
INVESTMENTS FOR RMBICC AND THE GROUP
(a) Listed Investments
Masonic Charitable Foundation Investment Fund CAIF
Cash held as part of investments:
Cash held by investment manager
(b) Investment Properties
(c) Social Investments:
VDF Loans
Total Investments
MOVEMENT FOR THE YEAR:
(a) Listed Investments & Unlisted Subsidiaries:
Market value at the beginning of the year
Additions
Proceeds from disposals
Disposals
Net investment (loss) / gain
Market value at the end of the year
(b) Investment Properties:
Market value at the beginning of the year
Additions
Proceeds from disposals
Property Revaluation (see note 24)
Market value at the end of the year
(c) Social Investments- VDF Loans:
Balance at the beginning of the year
New loans issued
Loans repaid
Balance at the end of the year		 As at
31st March 2022
Market values
£'000
21,274
21,274
1,535
22,809
8,392
1,216
As at
31st March 2021
Market values
£'000
25,300
25,300
1,539
26,839
8,392
1,245
32,417
31st March 2022
£'000
25,300
318
-
(6,500)
2,156
21,274
8,392
-
-
-
8,392
£'000
1,245
115
(144)
1,216		 36,476
31st March 2021
£'000
21,722
352
-
(2,000)
5,226
25,300
10,440
174
(2,222)
-
8,392
£'000
1,120
161
(36)
1,245

RMBI Trading Ltd, Stability Investments Ltd, RMBI (Settlement) Ltd and 19/21 GQS Ltd are wholly owned subsidiaries of RMBI Care Company. Their results are consolidated in these accounts. At 31 March 2022, the capital and reserves of RMBI Trading Ltd. stood at -£808k ( 2021: -£655k), Stability Investments Ltd was -£360 ( 2021: -£360), RMBI (Settlement) Ltd was -£7k (2021: -£975) and 19/21 GQS Limited was £4 (2021 - £4) . All profits of the subsidiaries are gifted to RMBI Care Company year on year.

The companies' principal activities are the design, build, alteration of RMBICC properties and management and resident billing.

41

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY

(Charity no. 1163245, Company no. 1293566)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2022

12. DEBTORS
Residents' contributions
RMBI Trading Limited & RMBI (Settlement) Ltd
Other debtors and prepayments
13. CREDITORS:
Amounts falling due within one year
Trade creditors
Taxation and social security costs
Other creditors
Accruals		 RMBICC
As at
31-Mar-22
Total
£'000
3,524
13,130
1,825
18,479
RMBICC
As at
31-Mar-22
Total
£'000
996
702
897
2,706
5,301		 Group
As at
31-Mar-22
Total
£'000
3,524
-
2,259
5,783
Group
As at
31-Mar-22
Total
£'000
1,055
702
897
2,940
5,594		 RMBICC
As at
31-Mar-21
Total
£'000
2,571
10,168
2,380
15,119
RMBICC
As at
31-Mar-21
Total
£'000
1,156
585
751
2,065
4,557		 Group
As at
31-Mar-21
Total
£'000
2,578
-
2,868
5,446
Group
As at
31-Mar-21
Total
£'000
1,666
722
751
2,252
5,391

42

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY (Charity no. 1163245, Company no. 1293566) NOTES TO THE FINANCIAL STATEMENTS

(Charity no. 1163245, Company no. 1293566)

FOR THE YEAR ENDED 31ST MARCH 2022

14.1 UNRESTRICTED FUNDS FOR RMBICC

(a) Current year
Designated funds:
Fixed asset fund
New building fund
Accumulated fund
Unrestricted Funds before Pension Scheme
Defined Benefit Pension Scheme
Unrestricted Funds after Pension Scheme
(b) Previous year
Designated funds:
Fixed asset fund
New building fund
Accumulated fund
Unrestricted Funds before Pension Scheme
Defined Benefit Pension Scheme
Unrestricted Funds after Pension Scheme		 Net
Balance movements
31-Mar-21
in funds
£'000
£'000
67,279
-
794
-
68,073
-
46,843
(4,239)
114,916
(4,239)
2,046
1,913
116,962
(2,326)
Net
Balance movements
31-Mar-20
in funds
£'000
£'000
69,086
-
2,398
-
71,484
-
39,663
3,769
111,147
3,769
1,930
116
113,077
3,885		 New
designations
£'000
1,831
3,099
4,930
(4,930)
-
-
-
New
designations
£'000
1,811
-
1,811
(1,811)
-
-
-		 Utilised /
released
£'000
(3,842)
(1,934)
(5,776)
5,776
-
-
-
Utilised /
released
£'000
(3,618)
(1,604)
(5,222)
5,222
-
-
-		 Balance
31-Mar-22
£'000
65,268
1,959
67,227
43,450
110,677
3,959
114,636
Balance
31-Mar-21
£'000
67,279
794
68,073
46,843
114,916
2,046
116,962

14.2 UNRESTRICTED FUNDS FOR THE GROUP

(a) Current year Net
Balance movements
31-Mar-21
in funds
£'000
£'000
67,279
-
794
-
68,073
-
-
-
45,816
(4,389)
113,889
(4,389)
2,046
1,913
115,935
(2,476)		 New
designations
£'000
1,831
3,099
4,930
-
(4,930)
-
-
-		 Utilised /
released
£'000
(3,842)
(1,934)
(5,776)
-
5,776
-
-
-		 Balance
31-Mar-22
£'000
65,268
1,959
Designated funds:
Fixed asset fund
New building fund
Accumulated fund
Unrestricted Funds before Pension Scheme
Defined Benefit Pension Scheme
Unrestricted Funds after Pension Scheme
67,227
-
42,273
109,500
3,959
113,459
(b) Previous year
Designated funds:
Fixed asset fund
New building fund
Accumulated fund
Unrestricted Funds before Pension Scheme
Defined Benefit Pension Scheme
Unrestricted Funds after Pension Scheme		 Net
Balance movements
31-Mar-20
in funds
£'000
£'000
69,086
-
2,398
-
71,484
-
-
-
38,631
3,774
110,115
3,774
1,930
116
112,045
3,890		 New
designations
£'000
1,811
-
1,811
-
(1,811)
-
-
-		 Utilised /
released
£'000
(3,618)
(1,604)
(5,222)
-
5,222
-
-
-		 Balance
31-Mar-21
£'000
67,279
794
68,073
-
45,816
113,889
2,046
115,935

43

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY (Charity no. 1163245, Company no. 1293566) NOTES TO THE FINANCIAL STATEMENTS

(Charity no. 1163245, Company no. 1293566)

FOR THE YEAR ENDED 31ST MARCH 2022

15. RESTRICTED FUNDS RMBICC AND THE GROUP

(a) Current Year
Victor Donaldson
Specific gifts, donations and legacies for Homes
Prince Edward Duke of Kent Court, Essex
L H Miles
Hoists & Disability Aids - Samaritan Fund
Good Neighbour & Friends of RMBI
NH Fowler
Royal Arch holidays
Jubilee Masters Nurse Training Scheme
Dementia Support - Grand Stewards Lodge
Other various
Sub-Total
Endowment Funds (note16)
(b) Previous year
Victor Donaldson
Specific gifts, donations and legacies for Homes
Hutchinson
Prince Edward Duke of Kent Court, Essex
L H Miles
Hoists & Disability Aids - Samaritan Fund
Good Neighbour & Friends of RMBI
NH Fowler
Royal Arch holidays
Jubilee Masters Nurse Training Scheme
Dementia Support - Grand Stewards Lodge
Other various
Sub-Total
Endowment Funds (note16)		 Balance
31-Mar-21
£'000
2,501
991
329
568
7
11
31
13
1
21
24
4,497
246
4,743
Balance
31-Mar-20
£'000
2,497
1,005
-
394
617
7
9
31
13
1
21
22
4,617
245
4,862		 Movement Expenditure
Transfers
Gains &
(losses)
£'000
(25)
(424)
(4)
(5)
-
-
-
-
-
-
-
(458)
(166)
(624)
Expenditure
Transfers
Gains &
(losses)
£'000
-
(299)
-
(65)
(49)
-
-
-
-
(25)
-
-
(438)
-
(438)
in funds
in funds		 Balance
31-Mar-22
£'000
2,588
770
325
563
7
12
31
13
1
21
26
Incoming
resources
£'000
112
203
-
-
-
1
-
-
-
-
2
318
1
319
Movement
4,357
81
4,438
Balance
31-Mar-21
£'000
2,501
991
-
329
568
7
11
31
13
1
21
24
Incoming
resources
£'000
4
285
-
-
-
-
2
-
-
25
-
2
318
1
319
4,497
246
4,743

Include within current year "Expenditure, Transferes, Gains & (losses)" is a transfer of £429k from Restricted Funds to General Funds. The transfer relates to building refurbuishment expenditure incurred during the year from Care Homes Restricted Funds as part of the overall capital program.

44

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY (Charity no. 1163245, Company no. 1293566) NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2022

15. RESTRICTED FUNDS (CONTINUED)

Victor Donaldson Fund:
Specific gifts, donations and legacies for the
Homes:
Prince Edward Duke of Kent Court, Essex
:
L H Miles:
Hoists & Disability Aids-Samaritans Fund
Good Neighbour Fund:
Friends of R M B I :
N.H. Fowler:
Royal Arch holidays:
Jubilee Masters Nurse Training Scheme
:
Dementia Support Fund
Other:		 Purpose
Various funds consist of amounts under £3k with varying purposes.
To assist with costs towards nurse training.
To advance secured loans to Beneficiaries to enhance their quality of life.
Donation by Mark Master Masons for the development of the Thomas
Were Howard House Group.
Donation from Grand Stewards Lodge towards Dementia Support
program.
For the specific use of the Homes towards costs of improving facilities for
the benefit of the residents.
To contribute towards the cost of an annual holiday to Malta for certain
Annuitants and residents.
To contribute, from its fund raising ball held each year, towards Annuitants'
holiday costs.
To assist towards Annuitants' holiday costs and make discretionary grants.
Use of income specifically for Connaught Court, York, towards the cost of
improving facilities for the benefit of its residents.
Donation from Masonic Samaritans Fund for hoists & disability aids
Funds received from the Estate of the late W. Bro. Leslie Hugh Miles,
PPJGW (Essex), to be used for the sole benefit of the residents of Prince
Edward Duke of Kent Court, Stistead Hall, Braintree, Essex.

16. ENDOWMENT FUNDS FOR RMBICC AND THE GROUP

The Institution had 22 permanent endowments for varying purposes within its charitable objectives. The three largest of these funds are the Cooper and Bull fund, £81k (2021:£81k), the Edith and Elsie Wing, £52k (2021:£51k) and the Ames Bequest £41k (2021:£41k). None of the other funds has a significant balance and, therefore, these funds have not been listed separately. During the year, 21 Endowment funds, apart from Cooper and Bull funds, were transferred to Unrestricted Fund, having received permission from the Charity Commission.

The purpose of the Cooper and Bull fund is to provide income towards the costs of the nurse training scheme and the purpose of the remaining permanent endowments is to provide income for the Homes and general use by the Institution.

45

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY

(Charity no. 1163245, Company no. 1293566)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2022

17. ANALYSIS OF NET ASSETS BETWEEN FUNDS FOR THE GROUP

(a) Current Year
Properties and equipment
Investments
Current assets
Current liabilities
RMBICC defined benefit scheme asset
Total Net Assets
(b) Previous year
Properties and equipment
Investments
Current assets
Current liabilities
RMBICC defined benefit scheme asset
Total Net Assets		 Unrestricted
funds
£'000
76,809
31,200
7,092
(5,600)
3,959
113,460
Unrestricted
funds
£'000
76,499
35,230
7,558
(5,398)
2,046
115,935		 Restricted
funds
£'000
29
1,217
3,185
6
-
4,437
Restricted
funds
£'000
47
1,246
3,443
7
-
4,743		 As at
31-Mar-22
Total
£'000
76,838
32,417
10,277
(5,594)
3,959
117,897
As at
31-Mar-21
Total
£'000
76,546
36,476
11,001
(5,391)
2,046
120,678		 As at
31-Mar-21
Total
£'000
76,546
36,476
11,001
(5,391)
2,046
120,678
As at
31-Mar-20
Total
£'000
72,711
35,149
12,134
(5,017)
1,930
116,907

18. CONNECTED PARTIES:

a. Province of Yorkshire, West Riding

During the period ended 31st March 2022 no contribution was received from the Province of Yorkshire, West Riding towards the running costs of RMBI Homes in Yorkshire (2021 - £nil).

b. Masonic Foundation for the Aged and the Sick.

The Masonic Foundation for the Aged and Sick (MFAS) was dissolved in March 2011 and residual funds dispersed. However, the name remains on the Charity Commission register so that if MFAS is the beneficiary of any future legacies the RMBICC will be the agreed recipient and once funds are received they will be shared with the Masonic Samaritan Fund.

46

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY

(Charity no. 1163245, Company no. 1293566)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2022

18. CONNECTED PARTIES (CONTINUED)

c. Masonic Care Limited

Masonic Care Limited was incorporated on 21st October 1998 to provide accommodation and care for people with learning disabilities. RMBI Care Company took over the running of the home and the net assets and liabilities were transferred in 2018. This company is now dormant.

d. RMBI Pension Trust Limited

RMBI Pension Trust Limited is the sole Trustee of the RMBICC Pension scheme, the defined benefit scheme of RMBICC. RMBICC pays pensions on behalf of the RMBICC Pension scheme. The total amount payable to the RMBICC, by the Pension (Scheme), as at 31 March 2022 was nil (2021 - nil).

e. Compass Housing Ltd.

During 2006/7 the RMBICC took over the administration of Compass Housing Ltd, a sheltered housing complex in Cornwall, that was previously administered by Masonic Charitable Housing. The total amount payable to the RMBICC, by the Compass Housing Limited, as at 31 March 2022 was nil (2021 - £0.6k). The administration of Compass Housing Ltd has been transferred to Masonic Charitable Foundation, the parent charity during 2019/20.

19. PENSION SCHEMES

The Charity operates two pension schemes. One of these pension schemes is a defined benefits pension scheme, which was closed to new entrants on 4th September 1996. The scheme was also closed for the existing employees in September 2010. The other scheme is a defined contribution scheme.

a. Defined contribution

The Charity operates a defined contribution pension scheme. During the year the charity made payments totalling £773k (2021 - £763k).

b. Defined benefit

The RMBI Pension and Life Assurance Fund ("the Fund") is a funded defined benefit arrangement which provides retirement benefits based on final pensionable salary.

The valuation used for FRS102 disclosures has been based on a full assessment of the liabilities of the Fund. On 30 September 2010 the scheme stopped accruing benefits to its members and all the employees at that time were transferred to the Group Personal Pension Scheme. Hence, there is no current service cost for the defined benefit scheme and all contributions in note 7 relates to the defined contribution scheme.

c . Principal actuarial assumptions at the balance sheet date:

The results of the most recent formal actuarial valuation as at 31 March 2019 have been updated to 31 March 2022 by a qualified independent actuary. The assumptions used were as follows:

Year ended Year ended
Significant actuarial assumptions: 31-Mar-22 31-Mar-21
Discount rate 2.7% 1.8%
Rate of inflation (RPI) 3.9% 3.3%
Rate of inflation (CPI) 3.3% 2.7%

47

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY (Charity no. 1163245, Company no. 1293566) NOTES TO THE FINANCIAL STATEMENTS

(Charity no. 1163245, Company no. 1293566)

FOR THE YEAR ENDED 31ST MARCH 2022

19. PENSION SCHEME (CONTINUED):

Principal actuarial assumptions at the balance sheet date (continued)

Year ended
Other actuarial assumptions:
31-Mar-22
Rate of increase in pensionable salaries
3.9%
Rate of Increase in pensions - Post 88 GMP
2.6%
Rate of Increase in pensions - Pre 97 XS
0.0%
Rate of Increase in pensions - Post 97 pension
3.7%
Rate of Increase in pensions - Post 05 pension
2.4%
Revaluation of deferred pensions (non-GMP)
3.9%
Mortality assumptions:
Mortality before retirement
as per post
retirement
Mortality before and after retirement - S3PMA / S2PMA
112%
Mortality before and after retirement - S3PFA / S2PFA
120%
Life Expectancies (in years):
Males
Females
For an individual age 65
21.1
23
At age 65 for an individual aged 45
22.4
24.5
31-Mar-22		 Year ended
31-Mar-21
3.3%
2.3%
0.0%
3.2%
2.3%
3.3%
as per post
retirement
112%
120%
31-Mar-21
Males
Females
21
23
22.3
24.4

d. Changes in the present value of the defined benefit obligation are as follows:

Opening defined benefit obligation
Interest cost
Actuarial (Gain) / Losses
Post service cost
Benefit paid
Closing defined benefit obligation
e. Changes in the fair value of Fund assets are as follows:
Opening fair value of Fund assets
Interest income
Administration expenses
Actuarial (loss) / Gains
Contributions by employer
Benefits paid
Closing fair value of Fund assets
f. Assets:
The fair value of the assets of the Scheme were:
Equities
Property
Corporate Bonds
Fixed Interest gilts
Index linked gilts
Liability-driven investment (LDI)
Diversified Growth (DGF) & DCFs
Cash and net current assets
Total
The return on the assets was:
Interest Income
Return on assets less interest income
Total return on assets		 Year ended
31-Mar-22
£'000
20,184
354
( 1,300)
-
(1,004)
18,234
22,230
391
-
576
-
(1,004)
22,193
4,361
-
3,764
-
2,144
3,512
7,876
536
22,193
391
576
967		 Year ended
31-Mar-21
£'000
18,592
417
2,122
-
(947)
20,184
20,522
461
-
2,194
-
(947)
22,230
4,779
-
3,974
-
2,025
2,953
8,259
240
22,230
461
2,194
2,655

48

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY

(Charity no. 1163245, Company no. 1293566)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2022

19. PENSION SCHEME (CONTINUED):

g. Reconciliation to the Statement of Financial Position (balance sheet)

Market value of assets
Present value of defined benefit obligation
Fund status
Irrecoverable surplus
Pension asset/(liability) recognised in the SOFA
h. The amounts recognised in Statement of Financial Activities:
The amounts recognised in Statement of Financial Activities:
Current service costs
Past service cost
Interest on obligation
Net interest received
Total
The amounts recognised in Other Recognised Gains/Losses:
Actuarial gains/(losses) in defined benefit obligation
Actual return on assets less interest
Total

i. Future Funding Obligation:

The Trustee is required to carry out an actuarial valuation every 3 years. The most recent actuarial valuation of the Fund was performed by the Scheme Actuary for the Trustee as at 31 March 2019. This valuation revealed a funding surplus of around £1.1m and therefore no deficit contributions are required from the Company. The Company has agreed to pay the ongoing costs of administering the Fund (including the PPF levy) directly. These costs are shown elsewhere in the accounts.

49

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY

NOTES TO THE FINANCIAL STATEMENTS

(Charity no. 1163245, Company no. 1293566)

FOR THE YEAR ENDED 31ST MARCH 2022

20. TAXATION

The Royal Masonic Benevolent Institution Care Company is a registered charity and is potentially exempt from taxation in respect of income and capital gains received within the categories covered by Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that such income or gains are applied to exclusively charitable purposes.

21. NOTES TO CASH FLOW STATEMENT

ANALYSIS OF CHANGE IN NET FUNDS FOR THE GROUP

(a) Current year
Cash at bank and in hand
Short term deposits
Cash and cash equivalent
(b) Previous year
Cash at bank and in hand
Short term deposits
Cash and cash equivalent		 At 31st March
2021
£'000
5,462
93
5,555
At 31st March
2020
£'000
6,125
1,087
7,212		 Cash flow
£'000
(1,225)
164
(1,061)
Cash flow
£'000
(663)
(994)
(1,657)		 At 31st March
2022
£'000
4,237
257
4,494
At 31st March
2021
£'000
5,462
93
5,555

22 LEGAL STATUS OF THE CHARITY

The Charity is a company limited by guarantee and no share capital. In the event of the charity been wound up, the liability of the guarantee is limited to £10 per member of the charity.

23 ULTIMATE CONTROLLING PARTY

The charity is a subsidiary of the Masonic Charitable Foundation and the Trustee Board of the Masonic Charitable Foundation is the Charitie's ultimate controlling party.

24 INVESTMENT PROPERTY REVALUATION

The investment property revaluation was undertaken by an external, independent property valuers, with a relevant and recognised professional qualification. The valuers have recent experience in the location and category of the property being valued.

The property comprises a retail unit as well as four residential accommodations. The residential accommodations have been valued assuming a sale on 125 year lease. The valuation of the retail unit is based on 15 year lease, capitalising the income payable to the freehold with appropriate investment yield and reflects discounts for related costs associated with the sale.

25 RELATED PARTY TRANSACTIONS

There have been no related party transactions other than those disclosed in note 18.

26 COVID-19 IMPACT

The Trustees have evaluated the impact of the pandemic on the operations of the charity, which is to provide residential care, nursing care and residential dementia support to older Freemasons, their families and people in the wider community.

In 2021/22, despite the ongoing challenge of the COVID-19 pandemic, Charity continued to deliver its strategy, whilst planning for a world beyond the pandemic. During the financial year, the income from Charitable Activates increased by 4%. The donations through our parent Charity and Infection Control grants amounts to 17% of the total income of £54.3m. In our care homes and throughout the social healthcare sector, complexity in the care needs of residents has been increasing. In addition, ongoing regulatory changes have driven a need for higher staffing levels to ensure provision of safe and high quality care. The industry-wide difficulty in recruiting qualified care staff has also contributed to an increase in the operating costs. As a result of our continual effort to deliver efficiency improvements and operational controls, the cost of providing care during this financial year showed a below inflation increase of 2% to £61m.

The Trustees have evaluated the impact of the pandemic on the operations of the charity, which is to provide residential care, nursing care and residential dementia support to older Freemasons, their families and people in the wider community.

The Trustees do not consider there to be any going concern issues and for this reason the financial statements have been prepared on a going concern basis.

50