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2023-03-31-accounts

DocuSign Envelope ID: 0130E27A-513E-4372-9BCF-303F1BF144C3

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 MARCH 2023

Caring is our way of life

Registered Charity No: 1163245 | Company No: 1293566

60 Great Queen Street London, WC2B 5AZ www.rmbi.org.uk

DocuSign Envelope ID: 0130E27A-513E-4372-9BCF-303F1BF144C3

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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 2023

FINANCIAL OVERVIEW

2022/23 was a year of unprecedented challenges with widespread inflation and interest rate rises. As a company, we continued to demonstrate our resilience in an ever-changing economic environment. This year saw a redesign of RMBI Care Company’s business model of service delivery including our approach to marketing, simplified admissions, and recognising the increasing complexity of people in our care. This new operating model represents a major change to the way the Company operates by making it a simpler, transparent and more responsive to fast-changing market dynamics. Whilst it will take time to see the full impact, the RMBI Care Company is confident that the new profile provides a strong and enduring base on which the organisation can move forward.

During 2022/23 our care homes have maintained strong quality and regulatory ratings as we navigated our way through various challenges post Covid-19 and financial pressures faced. Ensuring families have good access to their loved ones in our care has remained a strong priority for us and we are now better equipped for any similar future crises.

The company has continued to make good progress on our ambitious 20-year Modernisation Plan. In August 2022, we sold a loss-making care home in Manchester and closed another care home in Berkshire, following the opening of our new-build Care Home Prince Philip Duke of Edinburgh Court. The new home will act as a blueprint for our future homes and it was a fitting tribute for the Home to be officially opened by His Royal Highness The Duke of Kent. The home has already received an international award in the category of ‘Health Care Design’ at the New York Muse Design Awards.

During the year, income from charitable activities - almost all of which was generated by our care homes - increased by more than 7% to £46.98 million. 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 RMBI Care Company provided charitable support for residents of over £12 million to cover this shortfall.

The generous contribution from the Masonic community through donations, legacies and donations via the parent charity, Masonic Charitable Foundation (MCF), totalled £6.9 million. Income from investment and other activities amounted to £1.4 million.

With continual efficiency improvements and cost controls, the expenditure of providing care during this financial year showed a below inflationary increase of 3% to £63.1m.

The RMBI Care Company invested £3.4 million in improving care homes by refurbishing existing facilities and maintaining properties to the highest possible standards; providing our residents with a pleasant and comfortable environment. In addition, £1.6 million was invested this year on the new care home in Berkshire.

The value of the RMBI Care Company's investment portfolio, inclusive of social investments, decreased during the year to £23.2 million. This decrease, after drawdown, reflected the overall decline of the broader financial markets last year.

Over the next 10 years, we plan to replace a number of our care homes with new-builds, and look for locations for new Homes. In early 2023, we successfully raised £10m to support our future activities through a sustainable charity bond, which attracted both institutional and private investors to invest in our future. The bond also allows us to develop our sustainability strategy, which includes installing solar panels and electric car points at our Homes.

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THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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 2023. 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 2019).

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 J Spence
The Deputy Grand Master RW Bro Sir David Wootton
The Assistant Grand Master RW Bro DJ Medlock, DL
The Assistant Grand Master RW Bro AS Varley

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 Newman, OBE RW Bro RJ Race, DL
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 Williams, 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
David Snowdon Director
Chris White Director (resigned November 2022)
Martyn Yeats Director
Malcolm Vede Director

The Masonic Charitable Foundation (MCF), as the Corporate Trustee, appoints the Chair and Treasurer 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 2023

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 Company are appointed by the RMBI Care Company’s 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 15 Trustees.

During 2022/23 a review of the Articles of Association was undertaken with parent consent from the MCF leading to submission to the Charity Commission for approval which was granted related to changes to the Objects and the number of Trustees increased from 12 to 15.

In meeting the requirements of the Charity Commission Code regarding EDI all future Board appointments will be progressed through external ‘head hunter’ arrangements with the prime objective of increasing the diversity of the Board.

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 Non-Executive Committee 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 (Stood down November 2022)
Martin Bevan Non-Executive Committee Member
Neil Graham Non-Executive Committee Member
Antony Cox Non-Executive Committee Member

Property and Maintenance Committee

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

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THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

Finance and Investment Committee

ance and Investment Committee
Sushil Radia Chair
Chris White Trustee(stood down November 2022)
Mark Constant Trustee
Martin Bevan Non-Executive Committee Member
Dale Gilbert Non-Executive Committee Member
Matthew Burrows Non-Executive 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 (stood down November
2022)

Development and Delivery Committee

Charlotte Miller Chair
David Snowden Trustee
Malcolm Vede Trustee
Bert F. Van Herck Non-Executive Committee Member
Richard Furter Non-Executive Committee Member

Senior Leadership Team (Executive Management)

Mark LLoyd Managing Director
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 Company Remuneration Committee. No member of the Executive Management is able to make a decision on their own pay.

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THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

Actuaries and Consultants

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

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 / Weightmans Solicitors LLP, 100 Old Hall Street, Liverpool, L3 9QJ

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 Company 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 were amended and approved by the Charity Commission during 2022 and are amended as follows:-

The objects of the charity are, for the public benefit, the relief of those individuals who are in need by reason of age, disability, poverty or ill-health by the provision of:

(a) Accommodation in residential care facilities or sheltered accommodation, and associated facilities;

(b) Financial assistance by way of grant; and/or;

(c) Such other services or assistance as the Trustees may from time to time think fit. In carrying out these objects, the Trustees shall take reasonable steps to give preference to individuals who are Freemasons (or individuals who have at any point been the spouse, civil partner, child or other dependant of a Freemason).

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

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THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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 Company is set by the Board of Trustees who meet bimonthly. 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 Company Board. Clear policy and procedures are in place for the management of all tenders and procurement against agreed standards.

All 17 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 Company 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 Company 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.

A new EDI Steering Group has been established with Trustee and Employee representation.

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 2023

Indemnity Insurance

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

Objectives and Activities

Mission

The RMBI Care Company 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 1,008 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 tail end of the pandemic.

Carehome.co.uk recognised the Charity as a ‘Top 20 Mid-size Care Home Group’ for the sixth year running, and Albert Edward Prince of Wales Court, in Porthcawl, was identified as a ‘Top 20 Care Home’ in Wales with Harry Priestley recognised in Yorkshire and West Riding. 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.

The Board and Executive Team have agreed an ambitious 20-year vision for our Charity in expanding the portfolio with new build care homes and considering entry into the younger retiree retirement community market. Our plans were adapted in the short term during 2022 given world events and the impact on the economy. Despite the more turbulent times with high inflation the Charity had a successful year. Fixed price utility deals were negotiated early in 2022 providing some protection of rising energy costs. The Charity has embarked on a Sustainability Strategy which has seen the introduction of a solar panels programme and roll out of electric charging points at our Care Homes.

During 2022/23 the Charity successfully and for the first time raised investment finance from the Stock Exchange through the Retail Charity Bond Platform. The £20m issue of 6.25% bonds due 2029 by special purpose issuer RCB Bonds PLC, of which £10m has been advanced to RMBI Care Company and £10million retained for future funding for the Charity. The issue closed early and was over-subscribed with 60% of the investment raised coming from private individuals rather than the larger institutions. This facility will support our development plans in moving forward.

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

FOR THE YEAR ENDED 31 MARCH 2023

During 2022/23 the Charity completed its first new build scheme in more than a decade. Prince Philip Duke of Edinburgh Court in Sindlesham Berkshire opened during September providing 45 specialist dementia and nursing beds. The Care Home was formally opened by His Royal Highness the Duke of Kent in November 2022.

During the year the Charity also closed Lord Harris Court which had provided 50 years of service as the above home replaced this provision, and sold Ecclesholme, Manchester as a going concern. Planning permission is pending for our next development at Cornwallis Court, Bury St Edmunds to replace the existing care home commencing in 2023.

Governance and Practice

The Charity takes extremely seriously the maintaining of regulatory standards across its portfolio. Robust internal audit and inspection occurs with dash board monitoring of all key data. The management of all care plan and medication records is now digitalised enabling tracking of all trends and information. During the year an external audit of the IT and Digital systems in place took place and confirmed the appropriateness and actions taken to ensure a safe and secure environment.

89% of our Homes hold grades of ‘Compliant’, ‘Good’, or ‘Outstanding’ which is upper quartile in the benchmarking of Homes in the sector. However, it is our intent to achieve 100% in 2023/24.

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 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 Company 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 1,008 registered beds for residential, dementia and nursing care in the 16 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.

During the year a new grant offering was extended to Freemasons and their dependents in the North-West of England. This scheme provides support to families on entry into registered care and loos to provide financial assistance to meet an element in fee funding shortfall to a registered care home of choice.

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.

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THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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 at present on the market. These proceeds’ will be utilised to meet our development programme costs.

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 Company 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 and Safety requirements and monitoring. Monthly Performance Targets on Occupancy and Staff Spend are set with monthly KPI targets.

Equity, Diversity and Inclusion (EDI)

As part of the Charity Governance Code review the Board established a working group which was chaired by one of the Trustees and included the Managing Director, Group HR Director and two other Trustees to review Principle 6 of the Code. As a result of this the Board also invited an external facilitator to lead a Board training session on its responsibilities and recommended good practice.

A review of the staff and resident data has been undertaken and this will be reviewed on a quarterly basis to ensure the Board have a full understanding of the diversity of these key stakeholders. The mandatory training the Board commits to undertake has now been increased to an annual basis and includes Diversity and Equality; Unconscious Bias and Safeguarding.

During the financial year a recruitment and selection process was undertaken and external jobs boards were used to attract greater diversity in candidate attraction.

Sustainability

The past year was a challenging one for sustainability, as the world returned to physical meetings once more after the events set in motion by the pandemic. At RMBI Care Company with sustainability remaining one of the key priorities we adapted to a post-pandemic world. We have introduced hybrid working in London and have become far less reliant on printing and business travel, collaborating online where possible and embracing blended working principles so that we work together more effectively and reduce our environmental impacts.

RMBI Care Company continues to work on embedding its Sustainability Strategy into everything we do. In the last year we have set up a contract with a national food waste company to reduce land fill.

We have installed a 22 kW solar PV system at Queen Elizabeth Court in North Wales and to date have saved 1,876 kg in CO2 or the equivalent of 114 trees planted.

We plan to roll out solar PV systems to all homes in the next three years and install electric car charging points.

The next new care home which be built at Cornwallis Court will incorporate Solar PV, air source heat pumps and have high thermal efficiency.

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THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

Valuing Our Staff

The culture and values of the Charity remain underpinned by the core values of being Kind, Supportive and Trusted and these are evident in the way we work together to support our residents at each of our Homes and within our head office teams.

All Directors, senior managers including our Home Managers have regular team meetings to provide their teams with an understanding of our financial performance, strategic business plans and operational focus. In addition to this we have a bi-monthly staff newsletter which includes an update from the Managing Director.

There are two staff forums both chaired by the Group HR Director, meeting at least twice a year. These forums enable a business update to be provided including sector information and key projects and initiatives that are being worked on. Our staff representatives are able to bring suggestions and views for our consideration. A number of these have resulted in improvements to working practices and benefits that staff receive.

We issued our Employee Engagement Survey to all staff in March 2023 and we will review the feedback and make appropriate changes to ensure we have fully engaged and valued staff.

At Home level our Regional Operation Managers and HR Business Partners jointly offer the opportunity for staff to meet them and discuss matters that are important to them via staff surgeries.

We continue to focus on Wellbeing and during the course of the year our Wellbeing Champions delivered information on financial wellbeing; social wellbeing and spiritual wellbeing. All employees receive an Employee Assistance Programme which provides access to a range of health and wellbeing platforms, counselling support and discounts to at range of UK retailers. We have also made a commitment to become a Menopause Friendly Employer and our Learning at Work Week focused on this and was awarded an Impact Award for the work we are doing.

We also publish an annual EDI calendar and this enables a range of awareness events to be held within our Homes with our residents and staff as well as with our head office teams.

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.

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THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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. Special thanks to Doctor John Reuther, ably assisted by his wife Maggie who has provided a link to the Associations. After many years of service John stood down at the end of March 2023

Freemasonry Support

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

Donations and Fundraising

Every pound donated to the RMBI Care Company Homes 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 Charity 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.

Investment Performance

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 strategic and actual asset allocations as at 31st March 2023 are shown in the table below:

Asset Class Strategic
Allocation		 Benchmark Actual 31st
March 2023
Cash 0.00% SONIA 2.90%
Fixed Income 7.50% FTSE UK World Gov. Bond Index GBP 8.80%
International Equity 54.50% MSCI World ex UK NR GBP 59.20%
U.K. Equity 18.00% MSCI UK Equity NR GBP 18.10%
Emerging Market Equity 12.50% MSCI Emerging Markets Equity NR GBP 3.20%
Alternative Investments 3.75% HFRX Global Hedge Fund GBP 5.90%
Property 3.75% IA UK Direct Property TR 1.90%
100.00% 100.0%

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

FOR THE YEAR ENDED 31 MARCH 2023

Performance under the new arrangements is shown in the table below.

MCF CAIF RLAM
Money
Market		 RLAM
Short Term
Fixed
Income		 RLAM Short
Term Fixed
Income
Enhanced		 CCLA
Property
Fund
Fund at 31stMarch 2023 £12.611 M £0.0 M £0.843 M £0.212 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 (1.00)% 2.27% 2.13% 0.90% (11.40)%
Benchmark return for
year		 (1.00)% 2.23% 2.23% 2.23% (10.60)%
Peer group return for
year		 (4.10)% N/A N/A N/A (4.10)%
3 year return 39.60% 0.79% 1.04% 0.83% 8.80%
3 year benchmark 37.70% 0.80% 0.80% 0.80% (6.30)%
3 year peer group 26.40% N/A N/A N/A 26.40%

The CAIF had a volatile year due to challenging financial markets, falling from its opening value of £129.73 to close at £126.25 per unit. Holdings in the RLAM short term fixed income and fixed income enhanced funds were transferred to the money market fund in November to take advantage of substantially increased returns from this lowest risk fund.

Streamline Energy and Carbon Reporting

UK Greenhouse gas emissions and energy use data for the period 1 April 2022 to 31 March 2023 and previous years.


2023 and previous years.
Currentyear Previousyears
2022/23 2021/22 2020/21 2019/20 Units
Energy consumption used to calculate
emissions		 25,054,076 27,110,152 27,465,824
28,115,804
kWh
Energy consumption break down
Gas 19,840,971 21,453,840 21,865,671
22,237,373
kWh
Electricity 4,587,319 5,273,167 5,245,156
5,322,360
kWh
Purchased fuel(Generators) 13,356 5,106 7,473
n/a*
kWh
Transport fuel 313,004 226,958 254,747
278,929
kWh
Business travel in employee-owned
vehicles		 299,426 151,081 92,777
317,142
kWh
Scope 1 emissions
Gas consumption 3,622 3,929 4,020
4,101
tCO2e
Owned transport 79 55 63
98
tCO2e
Other fuel (generators) 3 1 2
n/a*
tCO2e

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THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

FOR THE YEAR ENDED 31 MARCH 2023 FOR THE YEAR ENDED 31 MARCH 2023 FOR THE YEAR ENDED 31 MARCH 2023 FOR THE YEAR ENDED 31 MARCH 2023
Scope 2 emissions
Purchased electricity 887 1,120 1,223
1,360
tCO2e
Scope 3 emissions
Business travel in employee-owned
vehicles		 74 37 23
82
tCO2e
Total gross emissions 4,665 5,142 5,331
5,641
tCO2e
Intensity ratio 4.67 4.85 4.76
5.75		 tCO2e/FTE
*During the first reporting year we omitted the fuel for generators due to lack of available information

Methodology

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used 2022 UK Government's Conversion Factors for Company Reporting.

As with last year, energy data for three flats for 20 Great Queen Street was not provided and therefore for 2022/23 we have used the same consumption as the year before, which was also previously estimated. In addition, for grey fleet, fuel types and vehicle types were not provided so approximately 269,000 business travel miles have been converted using ‘Unknown’ as the fuel type and ‘Average Car’ as vehicle type. The company fleet was more accurate in terms of the type of fuel used, but due to vehicle type information missing, ‘Average Car’ type conversion was used.

Intensity ratio

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per full time equivalent (FTE) employee. During 2022/2023 the number of FTE for RMBI was 999.

Energy efficiency actions

Since March 2019, RMBI Care Company has been working with Lantern (UK) Ltd, 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 Sustainability Statement[1] is now publicly available online.

We have taken the decision to show all our reporting data since the beginning of the SECR compliance scheme. In this way we are hoping to show progress in reducing our energy use and emissions.

Our overall emissions for 2022-23 slightly decreased compared to the previous year. This is mainly due to reductions in energy use (electricity, gas) across our estate as well as the lower electricity conversion factors due to decarbonization of the grid. However, we have noted the increased emissions on our business travel (grey fleet) and our company fleet which is due to increased mileage as well as lack of accurate data and the use of generic conversion factors. The use of fuel for our generators (also increased since last year) 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 a 22.4kW Solar PV Array at Queen Elizabeth Court and we are hoping to increase our onsite generation looking ahead. An electricity and gas meter reading programme (monthly meter readings) is underway for our homes, although in some cases readings are not communicated with the supplier/energy broker.

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We are still planning 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, to be able to report more accurately in future.

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:

Financial Review

The summary Statement of Financial Activities for the year ended 31 March 2023 is set out below.

Income

The total incoming resources amounted to £54.0m (2021/22: £54.3m). The major streams of income are detailed below:

Streams of income 2021/22
£m		 % of
income		 2021/22
£m
Income from Residents’ Fees 46.9 86.9% 43.8
Donations, Legacies and Grants 6.9 12.8% 9.4
Investment & Other Income 0.2 0.3% 1.1
Total 54.0 100% 54.3

A total of £86k (2021/22: £120k) was spent in generating donations and investment income.

Resources Expended

Operating expenditure for the year amounted to £62.3m (2021/22: £60.3m) whilst the Governance costs amounted to £0.8m (2021/22: £0.8m).

With continual efficiency improvements and cost controls, the expenditure of providing care during this financial year showed a below inflationary increase of 3% to £63.1m.

Net Operating Position

Net operating deficit of the RMBI Care Company amounted to £10.1 million (2021/22; deficit of £4.65m).

In addition, the actuarial loss on the defined benefit pension scheme amounted to £1.24m (2021/22: gain of £1.87m).

The overall net movement in funds for the year was an outflow of £11.3 million (2021/22; outflow of £2.7m).

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Capital Development

During 2022/23 £5.6 million (2021/22: £6.4m) was spent on capital programmes.

The significant project expenditures during the year were:

In addition, £0.6 million was invested on computers and equipment to enhance operational efficiency.

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 Modernisation
Plan		 Strategy Delivery Plan
until 2046 but
adaption in the short
to medium due to
economic climate.
The Plan remains
ambitious.
Revised 10 year Plan
adopted by the Board		 The risks associated with
the new 10 year plan are
documented within the 29
March 2023 Board Papers to
inform the work of the
Development & Delivery
Committee.		 The interlinking nature of key
strategic decisions are
identified to inform cash flow,
release of assets, and the new
build programme
2 Retail Charity
Bond		 Uncertain market
conditions confirms
an interest rate of
6.25% to gain investor
interest over an initial
6 year payback period.		 Success in raising the
coupon of £10m with early
closure of the Bond issue
during February 2023. 60%
retail and 40% institutional
investment.
Bond issue a success with
assessment of two further
issues in 2026 and 2029 to
review to ensure continued
market interest.		 Bond issue a success with
assessment of two further
issues in 2026 and 2029 to
review to ensure continued
market interest.
3 Sustainability
Strategy		 Requirement to be
proactive in adopting
green, carbon
reduction, and energy
saving strategy to
raise profile on
sustainability.
Achieves status as an
ethical provider which
is also crucial for bond
investor reporting		 Appoint of specialist
consultant to assist with
building the agreed
Sustainability Strategy with
detail on property
requirements and template
for future build projects.		 Longer term benefit in planning
programmes which also marks
out the RMBI as a trend and
ground breaker.

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FOR THE YEAR ENDED 31 MARCH 2023

FOR THE YEAR ENDED 31 MARCH 2023
4 Cornwallis Court
New Build		 Unable to utilise the
Bond funds with
resulting costs and
continued running of
existing loss making
home		 Engagement of Faithful and
Gould Employers Agent to
network contractors,
consultant support for
submitted planning, some
flexing on inflationary costs
in contract model		 Requirement to commence
build in 2023.
5 Recession and
significant
increase in
inflation		 Costs substantially out
strip income and
supply chains
consequences.		 Fixed term deals on utilities
for electricity until Oct 24
and Gas Oct 25 in place,		 Progression of solar panel
programme – Market testing of
catering contract for 23/24 –
flexing additional shifts to
diminish agency cost increases.
6 Cash flow High death rate in part
driven by potential
long COVID conditions
means a revised 23/24
budget to
accommodate trends		 Further draw down from
reserves required as well as
sale at 20 GQS.		 Introduction of strategy to only
take self-funders and masonic
local authority funded
residents. Dash board meetings
are setting KPI targets and
controls on occupancy and
staffing costs – progress on 20
GQS with Estate Agent
marketing
7 Occupancy Major impact on
income of charity if
targets not met		 Since August the Charity has
stopped non-masonic local
authority placements with a
focus on full funders.
Whilst occupancy trends
have slowed as a
consequence a stronger
income flow is resulting.		 84% the current occupancy
with a 2% reduction since
December 22 trends are
monitored weekly
Trends for 2023/24 being
evaluated for 88-89%
occupancy as the mean
average by year end
8 Lack of candidates
seeking to work in
social healthcare		 As a result of Covid-
19; Brexit; and
migration policy
attraction of
employees in the
sector remains a
significant challenge.
Inability to source or
attract candidates to
work in care and lack
of agency staff to fill
short term needs will
result in Homes being
able to staff to safe
levels		 Ensuring that our vacancies
stand out and candidates
click on our job ads first.
Marketing of our brand and
benefits
A joining bonus has been
introduced in September
2021 for front line staff
offering £1000 for nurses
and £250 for other hourly
paid Homes roles.
Management roles are
excluded.		 The Recruitment Manager has
a dotted line to oversee the
management of the Business
Relationship Managers in the
Homes. Constant reviews of
local pay rates are being
undertaken and creative open
days, social media presence
and promotion of refer a friend
bonuses are now in place.
9 High and/or
unplanned staff
turnover and lack		 Impact on sustainable
person centred care
to residents; ability to
deliver		 Annual salary reviews and
above average pay across
the care teams; market rate
payfor all other functional		 Bank teams recruited to
support vacant shifts; local /
national contract recruitment
agencies toprovide additional

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FOR THE YEAR ENDED 31 MARCH 2023
of candidates
available in market		 local/departmental
and corporate
business plans		 roles; offer of exit
interviews to understand
reasons; employee
engagement survey to
monitor levels of staff
engagement at all
locations/departments;
praise and recognition
schemes in place;
investment in management
teams both first and second
line levels; annual appraisals
which provide an
opportunity to discuss
career aspirations and
supervisions which enable
line managers to pick up on
any concerns. Recruitment
strategies developed for
each Home in conjunction
with the ROM/HRBP and
Marketing. Recruitment
and retention strategy at
each location overseen by
the ROM/HR BP		 cover. Talent management
strategy, which provides staff
to with clear career paths and
understand about learning and
development initiatives that
support this.
The HR Business Partners have
a dotted management line to
the Business Relationship
Managers at each Home to
enable high-level focus on
recruitment. Marketing
department are also
developing better social media
platforms to enable a
corporate approach to
attracting candidates. All
Homes now have an annual
budget to support recruitment
costs. Electronic Recruitment
system launched in July 2018
to enable faster process linked
to social media platforms.
10 Catering Contract Quality of Catering
compromising the
Quality of Care and
Well Being. Adverse
ratings and complaint		 Current contractor’s 5 year
contract due for tender
exercise or 2 year extension
– decision taken to tender
for new contract from July
2023		 Consultants engaged to offer
guidance on time table with
four bidders to be considered
during April and May.
11 Compliance Some Care Homes
have not been
inspected by CQC for
over 6 years		 Strong programme of
internal audit		 Action plans in situ with risk
identified early
12 Pandemic and / or
Epidemic
Outbreak		 Rapid transmission of
illness / physical
impacts.
Significant reduction
in operational staff,
business critical
partners and external
services leaving the
service unsafe for
residents.
Loss of life resulting in
reduced occupancy,
psychological impacts,
loss of reputation,		 Continuity Plan Group (CPG)
to manage, monitor and
regularly review response to
pandemic outbreak.
Response protocols,
Contingency Plans and
Business Continuity Plan to
be in place, up to date and
regularly reviewed.
Procurement team to
manage and maintain
sufficient stocks of basic
PPE.		 IPC training and independent
auditing provided by external
supplier.
Regular internal IPC auditing.
Continued monitoring of
information and guidance
issued by relevant authorities /
agencies. Liaison with bank
staff and agencies to secure
sufficient staffing levels.
Monitoring of resident and
staff health with supporting
protocols around relevant signs
and symptoms.

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FOR THE YEAR ENDED 31 MARCH 2023
financial impacts, loss
of Home.
Insufficient provision
of medical support
increasing impacts of
pandemic.
Inability to
operationally manage
Home		 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.		 Safe visitor spaces. Reduction
in non-essential footfall.
Reduce exposure to vulnerable
groups through risk assessment
13 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
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		 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.
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.

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FOR THE YEAR ENDED 31 MARCH 2023

FOR THE YEAR ENDED 31 MARCH 2023
with current legislation and
best practice.
14 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.
15 Data Protection
and new General
Data Protection
Regulations 2018		 Financial: Cost of
recovering key and
sensitive information
and penalty fine up to
£500,000.
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.		 Clear guidelines have been
produced for all members of
staff. The Data Protection
Policy is included in the
Employee Handbook. Staff
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		 Some laptops encrypted for
data protection.
Shredding boxes lock
protected. Extra backup servers
implemented at IP Technology.
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

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FOR THE YEAR ENDED 31 MARCH 2023
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
16 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 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.		 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.

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FOR THE YEAR ENDED 31 MARCH 2023

FOR THE YEAR ENDED 31 MARCH 2023
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
17 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
impact leading to
death of resident or
group of residents.
Breach of regulatory
requirements and
duty of care.
Prosecution, civil
claims, poor
reputation		 Homes - Home Managers to
take responsibility for day-
to-day care management
within the Home ensuring
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.		 Internal audit process to
monitor and evaluate the
effectiveness of care services
and report on findings. Local
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
18 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.

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19 IT & Digital
Technology		 Business failure and
threat to the
operations		 Contract arrangements have
been reviewed to determine
best value for money and a
rolling contract remains in
place with 24-month- notice
to either side.		 Monthly IT & Digital Meetings
ensure an overview of issues is
maintained
PRISM external Auditors
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 MCF global investment strategy seeks to protect the capital value of investments that are required to fund operations for a three-year time horizon (the “Cash Reserve”) and to invest all remaining funds for long term 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:

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.

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Group unrestricted reserves (after taking into account the pension scheme surplus) amounted to £102.5m (2021/22: £113.5m), of which the Trustees designated £74.9m (2021/22: £67.2m) in the Fixed Asset and New Building Funds. This leaves undesignated reserves of £24.7m (2021/22: £42.3m), which is equivalent to approximately 5-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 £4.1m (2021/22: £4.4m).

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:

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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 Company 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 Company. 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

W Bro S Radia

……………………………………… ……………………………

Chairman

Director

Approved on 26[th] July 2023

26

DocuSign Envelope ID: 0130E27A-513E-4372-9BCF-303F1BF144C3

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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 2023 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.

27

DocuSign Envelope ID: 0130E27A-513E-4372-9BCF-303F1BF144C3

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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.

28

DocuSign Envelope ID: 0130E27A-513E-4372-9BCF-303F1BF144C3

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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.

29

DocuSign Envelope ID: 0130E27A-513E-4372-9BCF-303F1BF144C3

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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

26[th] July 2023

30

DocuSign Envelope ID: 0130E27A-513E-4372-9BCF-303F1BF144C3

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31ST MARCH 2023

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 / (loss) 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
2023
£'000
46,979
463
971
6,797
(1,285)		 Group
Restricted
funds
2023
£'000
3
-
-
99
-		 Group
Total
2023
£'000
46,982
463
971
6,896
(1,285)		 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)
54,303
(120)
(60,996)
(61,116)
(6,813)
2,156
(4,657)
-
(4,657)
1,876
(2,781)
120,678
117,897
53,925 102 54,027 53,984 319
(86)
(62,934)		 -
(169)		 (86)
(63,103)		 (120)
(60,801)		 -
(195)
(63,020) (169) (63,189) (60,921) (195)
(9,095)
(931)		 (67)
-		 (9,162)
(931)		 (6,937)
2,156		 124
-
(10,026)
280		 (67)
(280)		 (10,093)
-		 (4,781)
429		 124
(429)
(9,746)
(1,243)		 (347)
-		 (10,093)
(1,243)		 (4,352)
1,876		 (305)
-
(10,989)
113,459		 (347)
4,438		 (11,336)
117,897		 (2,476) (305)
115,935 4,743
102,470 4,091 106,561 113,459 4,438

All amounts derive from continuing activities.

The notes on pages 34 to 49 form part of these accounts.

31

DocuSign Envelope ID: 0130E27A-513E-4372-9BCF-303F1BF144C3

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY

(Charity no. 1163245, Company no. 1293566)

CONSOLIDATED BALANCE SHEET

AS AT 31ST MARCH 2023

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
CREDITORS
Amounts falling due more than one year
13 (a)
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
2023
2023
2022
2022
£'000
£'000
£'000
£'000
74,133
76,614
65,296
76,838
23,241
23,241
32,417
32,417
97,374
99,855
97,713
109,255
9,553
5,935
18,479
5,783
9,885
9,885
257
257
3,576
3,604
3,967
4,237
23,014
19,424
22,703
10,277
(5,483)
(5,541)
(5,301)
(5,594)
17,531
13,883
17,402
4,683
(10,000)
(10,000)
-
104,905
103,738
115,115
113,938
2,823
2,823
3,959
3,959
107,728
106,561
119,074
117,897

74,956
74,956
67,227
67,227

25,858
24,691
43,450
42,273
100,814
99,647
110,677
109,500
2,823
2,823
3,959
3,959
103,637
102,470
114,636
113,459
4,010
4,010
4,357
4,357
81
81
81
81
107,728
106,561
119,074
117,897

The financial statements on pages 31 to 49 were approved by the Trustees on 26th July 2023.

and signed on their behalf by:

Chairman (VW Bro J Boyington CBE)

Director (W Bro S Radia)

The notes on pages 34 to 49 form part of these accounts.

32

DocuSign Envelope ID: 0130E27A-513E-4372-9BCF-303F1BF144C3

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY

(Charity no. 1163245, Company no. 1293566)

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 31ST MARCH 2023

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
Discontinued capital project cost written off to revenue
Proceeds from sale of property, plant and equipment
Purchase of investments
Proceeds from sale of investments
Net cash provided by (used in) investing activities
Cash flows from Financing activities:
Cash from Sustainable Bond issue
Net cash provided by (used in) Financing 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
2023
2023
Notes
£'000
£'000
(9,172)
(9,162)
3,527
3,517
1,285
1,285
(974)
(974)
(107)
(107)
8,926
(152)
182
(53)
3,667
(5,646)
974
974
(14,721)
(5,650)
-
-
1,072
1,072
(235)
(235)
8,480
8,480
(4,430)
4,641
10,000
10,000
10,000
10,000
21
9,237
8,995
21
4,224
4,494
21
13,461
13,489		 RMBI
Group
2023
2023
Notes
£'000
£'000
(9,172)
(9,162)
3,527
3,517
1,285
1,285
(974)
(974)
(107)
(107)
8,926
(152)
182
(53)
3,667
(5,646)
974
974
(14,721)
(5,650)
-
-
1,072
1,072
(235)
(235)
8,480
8,480
(4,430)
4,641
10,000
10,000
10,000
10,000
21
9,237
8,995
21
4,224
4,494
21
13,461
13,489		 Group
2022
£'000
(6,813)
3,911
179
(935)
(37)
(337)
203
21
21
21
(3,829)
935
(6,401)
-
2,019
(289)
6,504
(4,430)
4,641		 2,768
10,000
10,000		 -
10,000
10,000		 -
9,237
8,995
4,224
4,494
13,461
13,489		 (1,061)
5,555
4,494

33

DocuSign Envelope ID: 0130E27A-513E-4372-9BCF-303F1BF144C3

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY

(Charity no. 1163245, Company no. 1293566)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2023

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).

(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:

Interest payable in connection with monies raised by the charity for the construction of new assets is capitalised within the asset constructed and depreciated over its expected useful life. Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

34

DocuSign Envelope ID: 0130E27A-513E-4372-9BCF-303F1BF144C3

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY

(Charity no. 1163245, Company no. 1293566)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2023

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. Dividends are reinvested in the CAIF on the date that they are declared whilst Interest receivable is recognised on an accruals basis.

Interest receivable in connection with monies raised by the charity for the construction of new assets is offset against the borrowing costs incurred in raising those monies.

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.

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.

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.

35

DocuSign Envelope ID: 0130E27A-513E-4372-9BCF-303F1BF144C3

NOTES TO THE FINANCIAL STATEMENTS

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY

(Charity no. 1163245, Company no. 1293566)

FOR THE YEAR ENDED 31ST MARCH 2023

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.

36

DocuSign Envelope ID: 0130E27A-513E-4372-9BCF-303F1BF144C3

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY

(Charity no. 1163245, Company no. 1293566)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2023

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 2023
£'000
46,979
-
46,979
Unrestricted
funds
£'000
463
463
Unrestricted
funds
£'000
372
12
587
971
Unrestricted
funds
£'000
17
110
-
6,670
-
6,797		 Restricted
funds 2023
£'000
-
3
3
Restricted
funds
£'000
-
-
Restricted
funds
£'000
-
-
-
-
Restricted
funds
£'000
52
-
-
-
47
99		 2023
Total
£'000
46,979
3
46,982
2023
Total
£'000
463
463
2023
Total
£'000
372
12
587
971
Total
2023
£'000
69
110
-
6,670
47
6,896		 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
6. COST OF GENERATING FUNDS:
Cost of generating voluntary income
Investment management cost		 Staff
£'000
-
-		 Other
£'000
-
86
86		 Total - 2023
£'000
-
86
86		 Staff
£'000
-
-
-		 Other
£'000
-
120
120		 Total - 2022
£'000
-
120
- 120

37

DocuSign Envelope ID: 0130E27A-513E-4372-9BCF-303F1BF144C3

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY

(Charity no. 1163245, Company no. 1293566)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2023

7. INFORMATION REGARDING EMPLOYEES AND TRUSTEES

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
160,001 to 170,000		 2023
£'000
29,406
2,420
750		 2022
£'000
29,704
3,124
773
32,576 33,601
No. No.
12
5
4
3
-
2
1
-
-
-
1		 11
6
5
2
-
3
-
-
1
-
-
28 28

Key management are the members of the Executive Management who received total employment benefits of £809k during the period (2021/22 - £768k).

Staff reorganisation costs, totalling £3k (2021/22 - £6k), 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 £172k (2021/22 - £166k).

Average number of full and part time employees:
Homes
Support
Marketing
Management and administration		 No. No.
947 1,009
22 21
3 3
27 27
999 1,060

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 £9k (2021/22 - £5k), in relation to travelling and subsistence.

Trustees have taken out Indemnity Insurance and the cost to the Institution was £21k (2021/22 - £20k).

The number of Trustees receiving expenses was four (2021/22 - five).

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
IT and Computer maintenance
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
Annuities and grants
Total		 Residential &
Care Homes
before
support costs
£'000
28,995
948
9,945
5,502
2,619
2,068
3,366
400
964
518
644
166
47
307
-
22
480
212
599
95
57,897		 Support costs
(Head Office)
£'000
2,895
80
15
-
-
108
143
9
4
381
115
-
-
73
-
15
-
-
548
3		 Sub - Total -
Residential &
Care Homes
with Support
Costs
Finan
cial
assist
ance
for
the
£'000
£'000
31,890
-
1,028
-
9,960
-
5,502
-
2,619
-
2,176
-
3,509
-
409
-
968
-
899
-
759
-
166
-
47
-
380
-
-
-
37
-
480
-
212
1,147
-
98
-
62,286
-		 Governanc
e Costs
£'000
686
9
3
-
-
-
8
-
-
4
21
-
-
-
73
-
-
-
13
-		 Total
2023
£'000
32,576
1,037
9,963
5,502
2,619
2,176
3,517
409
968
903
780
166
47
380
73
37
480
212
1,160
98		 Total 2022
£'000
33,601
875
7,769
5,159
2,471
2,100
3,911
433
738
857
726
253
26
393
77
12
354
126
1,115
-
4,389 817 63,103 60,996

38

DocuSign Envelope ID: 0130E27A-513E-4372-9BCF-303F1BF144C3

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY

(Charity no. 1163245, Company no. 1293566)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2023

9.1 FIXED ASSETS FOR RMBICC

Tangible assets
COST:
At 31st March 2022
Additions
Disposals
At 31st March 2023
DEPRECIATION:
At 31st March 2022
Charge for the year
Disposals
At 31st March 2023
NET BOOK VALUE:
At 31st March 2023
At 31st March 2022		 Freehold
properties
£'000
99,170
14,150
(3,308)
110,012
(37,803)
(2,586)
1,064
(39,325)
70,687		 Long
leasehold
properties
£'000
842
6
-
848
(266)
(23)
-
(289)
559		 Motor
Computers &
Vehicles
Equipment
£'000
£'000
952
9,136
56
509
(96)
(2,449)
912
7,196
(921)
(5,814)
(31)
(887)
87
2,345
(865)
(4,356)
47
2,840		 Motor
Computers &
Vehicles
Equipment
£'000
£'000
952
9,136
56
509
(96)
(2,449)
912
7,196
(921)
(5,814)
(31)
(887)
87
2,345
(865)
(4,356)
47
2,840		 Total
£'000
110,100
14,721
(5,853)
118,968
(44,804)
(3,527)
3,496
(44,835)
74,133
61,367 576 31 3,322 65,296

9.2 FIXED ASSETS FOR THE GROUP

Tangible assets
COST:
At 31st March 2022
Additions
Transfer of completed projects to RMBICC
Disposals
At 31st March 2023
DEPRECIATION:
At 31st March 2022
Charge for the year
Disposals
At 31st March 2023
NET BOOK VALUE:
At 31st March 2023
At 31st March 2022		 Assets
Under
Freehold
Construction
properties
£'000
£'000
11,904
98,698
2,296
2,783
(11,256)
11,256
-
(3,308)
2,944
109,429
-
(37,693)
-
(2,576)
-
1,064
-
(39,205)
2,944
70,224		 Long
leasehold
properties
£'000
842
6
-
-
848
(266)
(23)
-
(289)
559		 Motor
Computers &
Vehicles
Equipment
£'000
£'000
952
9,136
56
509
-
-
(96)
(2,449)
912
7,196
(921)
(5,814)
(31)
(887)
87
2,345
(865)
(4,356)
47
2,840		 Motor
Computers &
Vehicles
Equipment
£'000
£'000
952
9,136
56
509
-
-
(96)
(2,449)
912
7,196
(921)
(5,814)
(31)
(887)
87
2,345
(865)
(4,356)
47
2,840		 Total
£'000
121,532
5,650
-
(5,853)
121,329
(44,694)
(3,517)
3,496
(44,715)
76,614
11,904
61,005		 576 31 3,322 76,838

10. CAPITAL COMMITMENTS FOR THE GROUP

Freehold
properties
£'000
-
852
852
On construction and improvement of Homes and other
capital expenditure:
- Expenditure contracted for
- Expenditure authorised but not contracted for		 Long
leasehold
properties
£'000
-
-
-		 Vehicles
& computer
equipment
£'000
-
-
-		 31st March
2023
Total
£'000
-
852
852		 31st March
2022
Total
£'000
891
1,068
1,959

39

DocuSign Envelope ID: 0130E27A-513E-4372-9BCF-303F1BF144C3

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE
(Charity no. 1163245, Company no. 1293566)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH 2023		 THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE
(Charity no. 1163245, Company no. 1293566)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH 2023		 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 2023
Market values
£'000
12,611
12,611
1,055
13,666
8,392
1,183
As at
31st March 2022
Market values
£'000
21,274
21,274
1,535
22,809
8,392
1,216
23,241
31st March 2023
£'000
21,274
268
-
(8,000)
(931)
12,611
8,392
-
-
-
8,392
£'000
1,216
74
(107)
1,183		 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

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 2023, the capital and reserves of RMBI Trading Ltd. stood at -£696k ( 2022: -£808k), Stability Investments Ltd was -£360 ( 2022: -£360), RMBI (Settlement) Ltd was -£8k (2022: -£7k) and 19/21 GQS Limited was £4 (2022 - £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.

40

DocuSign Envelope ID: 0130E27A-513E-4372-9BCF-303F1BF144C3

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY

(Charity no. 1163245, Company no. 1293566)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2023

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
13 (a). CREDITORS:
Amounts falling due more than one year
Other creditors (repayable after more than 5 years)		 RMBICC
As at
31-Mar-23
Total
£'000
3,890
3,496
2,167		 Group
As at
31-Mar-23
Total
£'000
3,890
-
2,045
5,935
Group
As at
31-Mar-23
Total
£'000
1,579
540
1,002
2,420
5,541
Group
As at
31-Mar-23
Total
£'000
10,000
10,000		 RMBICC
As at
31-Mar-22
Total
£'000
3,524
13,130
1,825		 Group
As at
31-Mar-22
Total
£'000
3,524
-
2,259
9,553 18,479 5,783
RMBICC
As at
31-Mar-23
Total
£'000
1,572
540
1,002
2,369
RMBICC
As at
31-Mar-22
Total
£'000
996
702
897
2,706		 Group
As at
31-Mar-22
Total
£'000
1,055
702
897
2,940
5,483 5,301 5,594
RMBICC
As at
31-Mar-23
Total
£'000
10,000
RMBICC
As at
31-Mar-22
Total
£'000
-		 Group
As at
31-Mar-22
Total
£'000
-
10,000 - -

For the purpose of rejuvenating its property portfolio, RMBI Care Company raised £10m in March 2023 through an issue of £20m sustainable bonds due 2029 issued by RCB Bonds PLC (RCB). £10m of the bonds were sold to institutional and retail investors and the proceeds loaned to RMBI Care Company under the terms of a loan agreement with RCB. The remaining £10m of bonds were retained by RCB and may be sold at the request of RMBI Care Company at a future date, with the proceeds of any such sale advanced to RMBI Care Company as a further advance under the loan agreement.

The interest rate on the bonds, and correspondingly the interest rate on the loan, is a fixed rate of 6.25% per annum until the expected maturity date of the bonds (i.e. 7 March 2029). Interest will be paid semi-annually in arrears on 7 March (3.125%) and 7 September (3.125%) in each year.

41

DocuSign Envelope ID: 0130E27A-513E-4372-9BCF-303F1BF144C3

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY

(Charity no. 1163245, Company no. 1293566)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2023

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-22
in funds
£'000
£'000
65,268
-
1,959
-
67,227
-
43,450
(9,863)
110,677
(9,863)
3,959
(1,136)
114,636
(10,999)
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)		 New
designations
£'000
14,720
3,049
17,769
(17,769)
-
-
-
New
designations
£'000
1,831
3,099
4,930
(4,930)
-
-
-		 Utilised /
released
£'000
(5,884)
(4,156)
(10,040)
10,040
-
-
-
Utilised /
released
£'000
(3,842)
(1,934)
(5,776)
5,776
-
-
-		 Balance
31-Mar-23
£'000
74,104
852
74,956
25,858
100,814
2,823
103,637
Balance
31-Mar-22
£'000
65,268
1,959
67,227
43,450
110,677
3,959
114,636

14.2 UNRESTRICTED FUNDS FOR THE GROUP

(a) Current year Net
Balance movements
31-Mar-22
in funds
£'000
£'000
65,268
-
1,959
-
67,227
-
-
-
42,273
(9,853)
109,500
(9,853)
3,959
(1,136)
113,459
(10,989)		 New
designations
£'000
14,720
3,049
17,769
-
(17,769)
-
-
-		 Utilised /
released
£'000
(5,884)
(4,156)
(10,040)
-
10,040
-
-
-		 Balance
31-Mar-23
£'000
74,104
852
Designated funds:
Fixed asset fund
New building fund
Accumulated fund
Unrestricted Funds before Pension Scheme
Defined Benefit Pension Scheme
Unrestricted Funds after Pension Scheme
74,956
-
24,691
99,647
2,823
102,470
(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
-
-
-
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
67,227
-
42,273
109,500
3,959
113,459

42

DocuSign Envelope ID: 0130E27A-513E-4372-9BCF-303F1BF144C3

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY

(Charity no. 1163245, Company no. 1293566)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2023

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-22
£'000
2,588
770
325
563
7
12
31
13
1
21
26
4,357
81
4,438
Balance
31-Mar-21
£'000
2,501
991
-
329
568
7
11
31
13
1
21
24
4,497
246
4,743		 Movement Expenditure
Transfers
Gains &
(losses)
£'000
(6)
(440)
-
-
-
-
-
-
-
-
(3)
(449)
-
(449)
Expenditure
Transfers
Gains &
(losses)
£'000
(25)
(424)
-
(4)
(5)
-
-
-
-
-
-
-
(458)
(166)
(624)
in funds
in funds		 Balance
31-Mar-23
£'000
2,585
388
325
563
7
13
31
13
1
21
63
Incoming
resources
£'000
3
58
-
-
-
1
-
-
-
-
40
102
-
102
Movement
4,010
81
4,091
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
4,357
81
4,438

Include within current year "Expenditure, Transfers, Gains & (losses)" is a transfer of £280k from Restricted Funds to General Funds. The transfer relates to building refurbishment expenditure incurred during the year from Care Homes Restricted Funds as part of the overall capital program.

43

DocuSign Envelope ID: 0130E27A-513E-4372-9BCF-303F1BF144C3

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY

(Charity no. 1163245, Company no. 1293566)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2023

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 has one permanent endowment fund called Cooper and Bull fund for £81k (2022:£81k).

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.

44

DocuSign Envelope ID: 0130E27A-513E-4372-9BCF-303F1BF144C3

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY

(Charity no. 1163245, Company no. 1293566)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2023

17. ANALYSIS OF NET ASSETS BETWEEN FUNDS FOR THE GROUP

(a) Current Year
Properties and equipment
Investments
Current assets
Current liabilities
Long-term 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
76,585
22,058
16,547
(5,543)
(10,000)
2,823
102,470
Unrestricted
funds
£'000
76,809
31,200
7,091
(5,600)
3,959
113,459		 Restricted
funds
£'000
29
1,183
2,877
2
-
-
4,091
Restricted
funds
£'000
29
1,217
3,186
6
-
4,438		 As at
31-Mar-23
Total
£'000
76,614
23,241
19,424
(5,541)
(10,000)
2,823
106,561
As at
31-Mar-22
Total
£'000
76,838
32,417
10,277
(5,594)
3,959
117,897		 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

18. CONNECTED PARTIES:

a. Province of Yorkshire, West Riding

During the period ended 31st March 2023 no contribution was received from the Province of Yorkshire, West Riding towards the running costs of RMBI Homes in Yorkshire (2022 - £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.

45

DocuSign Envelope ID: 0130E27A-513E-4372-9BCF-303F1BF144C3

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY

(Charity no. 1163245, Company no. 1293566)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2023

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 2023 was nil (2022 - 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 2023 was nil (2022 - Nil). 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 £750k (2022 - £773k).

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 2022 have been updated to 31 March 2023 by a qualified independent actuary. The assumptions used were as follows:

Year ended Year ended
Significant actuarial assumptions: 31-Mar-23 31-Mar-22
Discount rate 4.8% 2.7%
Rate of inflation (RPI) 3.3% 3.9%
Rate of inflation (CPI) 2.7% 3.3%

46

DocuSign Envelope ID: 0130E27A-513E-4372-9BCF-303F1BF144C3

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY

(Charity no. 1163245, Company no. 1293566)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2023

19. PENSION SCHEME (CONTINUED):

Principal actuarial assumptions at the balance sheet date (continued)

Year ended
Other actuarial assumptions:
31-Mar-23
Rate of increase in pensionable salaries
3.3%
Rate of Increase in pensions - Post 88 GMP
2.3%
Rate of Increase in pensions - Pre 97 XS
0.0%
Rate of Increase in pensions - Post 97 pension
3.2%
Rate of Increase in pensions - Post 05 pension
2.3%
Revaluation of deferred pensions (non-GMP)
3.3%
Mortality assumptions:
Mortality before retirement
as per post
retirement
Mortality before and after retirement - S3PMA / S2PMA
100%
Mortality before and after retirement - S3PFA / S2PFA
100%
Life Expectancies (in years):
Males
Females
For an individual age 65
21.4
23.8
At age 65 for an individual aged 45
22.7
25.3
31-Mar-23		 Year ended
31-Mar-22
3.9%
2.6%
0.0%
3.7%
2.4%
3.9%
as per post
retirement
112%
120%
31-Mar-22
Males
Females
21.1
23
22.4
24.5

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
Buyout aware funds
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-23
£'000
18,234
480
( 2,964)
-
(928)
14,822
22,193
587
-
( 4,207)
-
(928)
17,645
-
-
-
-
-
-
-
17,538
107
17,645
587
(4,207)
(3,620)		 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

47

DocuSign Envelope ID: 0130E27A-513E-4372-9BCF-303F1BF144C3

THE ROYAL MASONIC BENEVOLENT INSTITUTION CARE COMPANY

(Charity no. 1163245, Company no. 1293566)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2023

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.

The actuarial valuation of the Fund as at 31 March 2022 is currently being finalised. The preliminary results of this valuation revealed a funding surplus and therefore no deficit contributions are expected to be paid to the Fund during the accounting year beginning 1 April 2023.

48

DocuSign Envelope ID: 0130E27A-513E-4372-9BCF-303F1BF144C3

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 2023

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
2022
£'000
4,237
257
4,494
At 31st March
2021
£'000
5,462
93
5,555		 Cash flow
£'000
(633)
9,628
8,995
Cash flow
£'000
(1,225)
164
(1,061)		 At 31st March
2023
£'000
3,604
9,885
13,489
At 31st March
2022
£'000
4,237
257
4,494

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 Charity'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 COMPARATIVES

Where there has been a reclassification of incoming resources, outgoing resources, assets or liabilities, the comparative figures have been restated accordingly.

49