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2022-03-31-accounts

THE GRAND CHARITY

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Charity Number: 1170335 Company Number: 01487345

THE GRAND CHARITY

Contents Page
Trustees’ Annual Report 3
Strategic Report 7
Statement of Trustees’ Responsibilities 12
Auditor’s Report 13
Statement of Financial Activities 16
Balance Sheet 17
Statement of Cash Flows 18
Notes to the Financial Statements 19
The following pages do not form part of the statutory accounts
Annex A - Grants to Non-Masonic Charities 27

Page 2 of 28

THE GRAND CHARITY

TRUSTEES’ ANNUAL REPORT

The trustees are pleased to submit their report for the year ended 31[st] March 2022. This report includes a directors’ report as required by Section 415 of The Companies Act 2006 and a strategic report as required by The Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013.

Reference and Administrative Information

Name and Registered Office

The name of the charity is The Grand Charity (the “Charity”) and it has its registered office at 60 Great Queen Street, London, WC2B 5AZ.

Trustees

The trustee who served during the whole of the year was:

The trustees of the MCF who served during the year were:

James H. Newman resigned as Chairman of the MCF on 31[st] March 2021 and Trustee of the MCF on 28[th] April 2021, and Sir Paul Williams was appointed Chairman on 1[st] April 2021

Page 3 of 28

THE GRAND CHARITY

TRUSTEES’ ANNUAL REPORT

Executive

The Executive during the year to 31[st] March 2022 were:

Auditor

Knox Cropper LLP, Chartered Accountants, 65 Leadenhall Street, London, EC3A 2AD

Bankers

Barclays Bank Plc, Level 28, 1 Churchill Place, Canary Wharf, London, E14 5HP

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

Stone King LLP, Boundary House, 91 Charterhouse Street, London, EC1M 6HR

Page 4 of 28

THE GRAND CHARITY

TRUSTEES' ANNUAL REPORT

Structure, Governance and Management

Organisation

The Charity is constituted as a company limited by guarantee and its governing document is its articles of association.

The Charity was renamed from Masonic Charity Trustee Limited on 16[th] December 2016. The unrestricted assets from the unincorporated trust, together with the restricted Transferred Beneficiaries Fund, were transferred to the Charity with effect from 1[st] February 2017 following a resolution from the trustees made on 15 December 2016. The restricted Relief Chest Fund remains in the unincorporated trust. The Transferred Beneficiaries Fund was transferred to the Royal Masonic Benevolent Institution (RMBI) on 1[st] November 2017.

As the trustees consist of the Masonic Charitable Foundation (“MCF”) and the chairman of the MCF, the MCF exercises control over the Charity, and will consolidate the Charity’s results in its group accounts. Details of the processes for the appointment, induction and training of the MCF’s trustees are given in the annual report and accounts of that company.

Governance and Management

All governance and management capabilities are provided by the MCF and details of the relevant committees and processes are provided in the annual report and accounts of that company. Trustees and committees of the MCF address the specific needs of the Charity as part of their roles and responsibilities for the MCF. The trustee board and the main committees meet as follows:

Board/Committee Purpose Meetings per
**year **
Trustee Board Main decision-making body with ultimate responsibility for the
Charity		 4
Audit andRisk Identificationandmitigationof risk, oversight ofexternalaudit 2
Charity Grants Consideration of applications for grants from organisations
recognised by the Charity Commission		 4
Finance Ensuring adequate procedures are in place to manage all
aspects of financialplanning, controlling andreporting.		 4
Fundraising Supporting the masonic community’s fund raising activities to
support the Charity		 4
Investments Maintaining investment strategies to meet the requirements of
the Charity, appointment and monitoring of fund managers		 4
Masonic Support Consideration of applications from individuals connected with
themasonic communityfor financial relief		 4
Property (RMTGB
only)		 Development and execution of strategies to optimise the returns
fromthe Charity’s property portfolio		 4
Remuneration Determination of executive and staff pay & benefits 2
Strategy Development and implementation of strategies to support the
Charity’s objectives. In addition, the trustees hold an annual
strategic‘away day’.		 4

Page 5 of 28

THE GRAND CHARITY

TRUSTEES’ ANNUAL REPORT

The Charity does not employ any staff, with services being provided by staff employed by the MCF. These services are recharged by the MCF monthly, based upon the number of grants processed, as detailed in note 6 to the accounts.

Page 6 of 28

THE GRAND CHARITY

STRATEGIC REPORT

Objectives and Activities

Objectives

The Charity is the central grant-making charity of all Freemasons under the English Constitution. The objects of the Charity, as expressed in the trust deed, are very broad and before the amendments approved at the annual general meeting in September 2015, gave discretion to the trustees to support charitable purposes as recognised under UK Law. As a result of the amendments, that discretion has now passed to the Charity’s corporate trustee.

The trustees have referred to the Charity Commission’s general guidance on public benefit when reviewing its aims and objectives and have ensured that its grant-making policies and activities comply with the requirements.

Activities

Under guidelines adopted by the Council prior to 1 April 2016, the activities of the Charity were primarily in two areas to the benefit of the public. These have since been adopted by the corporate trustee when administering the funds of the Charity. During the course of the year, the funds of the Charity were depleted and the MCF took over the funding of new grants.

Making financial grants for charitable purposes

Grants are made in support of:

Freemasons and their dependants in financial distress

The Charity provides masonic relief grants to masons or their dependants who require help with daily living expenses and for unexpected or exceptional needs. These are assessed against eligibility criteria, the guidelines for which are reviewed regularly.

With the masonic relief grants programme, the Charity has two primary objectives.

  1. To provide assistance to masons and their dependants who are in financial need.

  2. To encourage applicants to apply for all state benefits to which they might be entitled.

The Charity has relied heavily on lodge almoners and provincial grand almoners to seek out masons and their dependants in need of charitable assistance, whether it is financial support or simply encouragement to make application for any state benefits to which they might be entitled.

The total of masonic relief grants expenditure is found in Note 5 to the accounts on page 22.

Other Masonic Charities

The Charity makes grants to other masonic charities when justifiable needs are identified.

Page 7 of 28

THE GRAND CHARITY

STRATEGIC REPORT

Grants to Charities

Grants from Charity are made to charities that are registered with the Charity Commission and whose beneficiaries are located across England and Wales. In addition, grants are provided for disaster relief support, both in the UK and abroad.

The Charity seeks to achieve three main objectives through its non-masonic giving.

  1. To make a significant difference to people in real need.

  2. To support issues of concern to freemasons and their families.

  3. To achieve maximum impact by benefiting as many people as possible.

During the period covered by this annual report, the Charity made grants to non-masonic charities in the following policy areas where public benefit is clearly demonstrated.

  1. Financial Hardship – Grants support charities that relieve household or individual financial poverty.

  2. Social Exclusion and Disadvantage - Grants support charities which relieve isolation and loneliness for those experiencing family breakdown or crisis, rural or urban deprivation, homelessness, digital exclusion or social exclusion, as well as those with a disability or long-term illness which acts as a barrier to a fulfilling life.

  3. Emergency Grants - Emergency grants are made in times of national emergency, both in the UK and overseas. These grants are made at the discretion of the Emergency Panel to ensure rapid response by the Charity and are normally made through international relief organisations. Some grants are made in conjunction with the appropriate District or Provincial Grand Lodge.

The total of non-Masonic grants expenditure is found in Note 5 to the accounts on page 22.

The provision of administrative services

  1. Relief Chest Scheme

The Relief Chest Scheme (“RCS”) has been retained within the unincorporated trust for The Grand Charity and details of the operation of the RCS are shown in the accounts for that trust.

  1. Maintaining and supporting the Festival and Donations IT system

Maintenance of the Festival and Donations IT system was transferred to the MCF from 1[st] April 2016.

Aims

Following the creation of the MCF, for 2020/21 the primary aim of the Charity was, through the work of the MCF, to combine grant-making activities with those of the RMTGB and the MSF to ensure the combined broad range of support was offered to all eligible beneficiaries consistently to the same high standards.

Public Benefit

In planning the objectives for the year, the trustees have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers and duties.

Page 8 of 28

THE GRAND CHARITY

STRATEGIC REPORT

Achievements and Performance

Financial Review

Review of the Year

With no remaining festivals and the depletion of the CAIF, there are no ongoing sources of income save for the occasional legacy.

Legacies which are by nature variable increased from £0.68 M in 2021 to £0.87 M for the current year. Total income of £0.89 M was 5% higher than prior year as a result.

Expenditure of £1.94 M was 81% lower than prior year, as reserves were depleted and the MCF took over the funding of grants. Masonic grant expenditure of £1.08 M was 77% lower than the previous year. Charity grants of £0.44 M were 89% lower than prior year.

Investment gains of £2k were recorded from the residual amounts left on deposit with RLAM. The deficit for the year of £1.05 M (2021: £9.08 M) was transferred to reserves.

Reserves Policy

The reserves for the Charity ended the year at £0.72 M. At the end of the year, the Charity had £0.74 M in its bank account to pay the remaining grant creditors of £0.54 M. No further grants or other expenditure will be made in the future. Any residual legacies received by the Charity in the future will be transferred to the MCF in order to support the funding of the grant activities that is has taken over.

Page 9 of 28

THE GRAND CHARITY

STRATEGIC REPORT

Principal Risks and Mitigation

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

**Risk ** Consequence **Mitigation **
Significant unexpected
financial loss from
operations		 Reputational damage, loss of
confidence with key stakeholders
and impact upon continuing
financial sustainability		 Strong financial procedures,
particularly budgetary planning and
control. Oversight from the Finance
Committee.
Inadequate liquidity to
meet financial
commitments		 Poor service to beneficiaries and
reputational damage. Withdrawal
of key servicesfromsuppliers		 Cash flow forecasting and liquidity
planning within the Investment
Strategy
Significant long-term loss
in the value of the
investment portfolio		 Impacts financial sustainability
and reputational damage with
donors		 Appointment of Asset Risk
Consultants as expert investment
advisors, providing monthly
performance reporting and analysis.
Oversight from investment and
property committees.
Grants made outside the
Charity’s Objects and
operating guidelines		 Reputational damage, loss of
confidence with key stakeholders
and potential trustee liability		 Strong procedures and controls for
processing grants. Oversight from
Masonic Support and Charity Grants
committees
Cyberattack on IT systems All key operations are
compromised		 UGLE and IT network providers
have strong security procedures in
place covering access, protection,
backups and disaster recovery
facilities. Mandatory cybersecurity
traininginplaceforallstaff
Data protection breach Reputational damage and
significantfinancialpenalties		 Data protection policy, IT security
andHRpoliciesinplace
Fraud Financial loss, reputational
damage, adverse impact upon
staff		 Financial procedures, segregation of
duties, authority limits, IT security,
increased awareness amongst staff
Unavailability of office
accommodation		 Operations compromised UGLE Business Continuity Plan
Loss of paper records
from fire/flooding		 Breach of legal obligations,
adverse impact upon operations,
potential financialpenalties		 Reduced reliance on paper records
with increased use of IT.
Lack of compliance with
employment legislation		 Breach of legal obligations,
potential financial penalties,
breakdown of staff morale and
adverse impact upon service
provision		 HR procedures and staff handbook.
Induction processes for new staff.
Ongoing management training and
Personal Development Review
Undue reliance on key
persons		 Operational breakdown, adverse
impact upon staff morale, poor
service to beneficiaries and
potential reputational damage		 HR procedures: organisational and
succession planning.
Comprehensive documentation of
procedures and controls

Risks are actively monitored by the Executive and the senior leadership team, and formally reviewed by the audit and risk committee at their biannual meetings.

Page 10 of 28

THE GRAND CHARITY

STRATEGIC REPORT

Plans for Future Periods

The Charity will remain open for the sole purpose of receiving donations and legacies, the value of which will be transferred over to the MCF.

Page 11 of 28

THE GRAND CHARITY STATEMENT OF TRUSTEES, RESPONSIBILITIES Stat•m•nt of Responsibilities The Iruslees, who are also the directors of Ihe Charity for the purposes of company law, 8re responsible for preparing the trustees. report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (U.K. 'GAAP"). Company law requires the trustees to prepare financial statem8nts for each financial year which give a true and fair view of the state of affairs of the Charity and of the income and expenditure of the Charity for that year. In preparing these financlal statements, the Iruslees are required to.. select suitable accounting policies and thèn apply them consistently., observe the methods and principles in Accounting and Reporting by Charities.. Statemenl of Recommended Practice applicable to charities praparing their financial statements in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of I￿land (FRS1021,' makejudg8menls and estimat8S that are reasonable and prudent., sta18 whether United Kingdom accounting standards have been followed, subject lo any material departures disclosed and explained in the financial statements., and prepare the financi81 statements on the going concern basis unless il Is inappropriate lo presume that the charity will continue to op8rale. The trustees are responsible for keeping proper accounting records Ihal disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the ass6ls of the Charity and for18king reasonable steps for the prevention and d8tecllon of fraud and other irregularities. Statement of Dlsclosure of Information to Auditor Each of the trustees has confirmed thal there is no inforn78tion of which they are aware which Is relevant to the audit. but of which th8 auditor is unawa￿. They have further confirm8d that they have taken appropriate steps to identify such relevant infom8tion and to establish that the auditor is aware of such information. Auditor A resolution proposing that Knox Cropper LLP be reappointed as auditor will be pul lo the members. Approval by Trustees This report, includlng the strategic report. was approved by the trustees on 15th September 2022 and signed on ir behalf by Slr Paul Williams, OBE, KStJ, DL Chaimian, MCF Page 12of28

THE GRAND CHARITY

REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBER OF THE GRAND CHARITY

Opinion

We have audited the financial statements of The Grand Charity (the ‘Charitable Company’) for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet, 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 of 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 charitable company 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.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Page 13 of 28

THE GRAND CHARITY

REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBER OF THE GRAND CHARITY

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinion on other matters prescribed by the 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 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 where 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 set out on page 12, 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 Charitable 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.

Page 14 of 28

THE GRAND CHARITY REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBER OF THE GRAND CHARITY Auditorfs responsibilities for the audit of the flnanclal statements Our objectives are to obtain reasonable assurance about whether the financial slalements as a whol8 are free from material misslalement, whether due lo fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high 18vel of assurance, but is not a guarantee that an audit conductèd in accordanc8 With ISAS (UK) will always detect a material misstatem8nl when il exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably b8 expected to influence the economic decisions of users takèn on the basis of these financial stalem8nls. Irregularities, including fraud, are instances of non-compliance wlth laws and regulations. We design procedures in line with our responsibilities. outlined above, lo detect material misstatements in resp8Ct of irregularities, including fraud. The extent lo which our procedures are capable of det8Ctlng irregularits'es. including fraud is d8lailed below.. The Charitable Company is required to comply with both company law and charity law and, based on our knowledge of its activitles, we identified Ihal the legal requirement lo accurately account for any reslricled funds was of key significance. We gained an understanding of how th8 Charitable Company complied with ils legal and regulatory framework, including the requirement to properly account for any reslricled funds, through discussions with management and a review of the documented policiès, procedures and controls. The audit team, which is experi6nc8d in the audit of charities, Considered the charltable company's SUSC8plibilily lo material misslalement and how fraud may occur. Our considerations included the rlsk of management override. Our approach was to check that all r951ricted Income was propedy idenlifi8d 8nd separately accounted for and lo ensure that only valid and appropriate expendilure was charged to restricted funds. This included reviewlng journal adjustments end unusual transactions. A further desGriplion of our responsibilities for the audit of the financial slalements Is located on the Financial Reporting Council's w8bsite at.. www.frc.or auditorsres of our auditor's report. on5ibilities. This description fonns part of the audlt report This report is made solely lo the Charitable Company's member in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's member 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 member for our audit work, for this report or for the opinions we have fomied. Stephen Anderson FCCA Senior Statutory Auditor for and on behaff of Knox Cropper LLP Statutory Auditor 65 Leadenhall Slre&t London EC3A 2AD l ￿21 Pag8 15 of28

THE GRAND CHARITY

STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 MARCH 2022

(Including an Income and Expenditure Account)

Note
INCOME
Donations and legacies
2
Investment income
3
Total income
EXPENDITURE
Cost of generating funds
Investment management costs
4
Charitable activities
Masonic grants
5
Non-Masonic grants
5
Total expenditure
Net gains on investments
8
Net income/(expenditure)
Transfers between funds
NET MOVEMENT IN FUNDS
Total funds brought forward
Total funds carried forward		 2022
2021
£'000
£'000
881
774
5
68
886
842
(26)
(102)
(18)
(73)
(44)
(175)
(1,386)
(5,887)
(506)
(4,327)
(1,892)
(10,214)
(1,936)
(10,389)
2
466
(1,048)
(9,081)
0
0
(1,048)
(9,081)
1,767
10,848
719
1,767

All income and expenditure derive from continuing activities and all gains/losses are included in the statement of financial activities

The notes on pages 19 to 26 form part of these financial statements.

Page 16 of 28

THE GRAND CHARITY BALANCE SHEET as at 31 March 2022 Company Number 01487345 Note March 2022 £'ooo March 2021 £'ooo CURRENT ASSETS Debtors Inveslments Cash al bank and in hand 521 471 4,678 1,372 742 1,263 6,521 CURRENT LIABILITIES Creditors falling due within one year NET CURRENT ASSETS 10 (493) 14,563) 770 1,958 Creditors falling due after one year Total net aJMtB 10 {51) (1911 719 1,767 CHARITABLE FUNDS Unrestrlctod fund8 General reserves 719 1.767 Total charltsblo fund• 719 1,767 The financial statements were approved and authorised for issue by the Trustee Board on 151h September 2 and signed on their behalf by.. Sir Paul Willia<oBE. DL Michael H88nan Chairman Treasurer The notes on pages 19 to 26 fonn part of these financial statements Page 17of28

THE GRAND CHARITY

STATEMENT OF CASH FLOWS

YEAR ENDED 31 MARCH 2022

Operating Activities
Net cash provided by/(used in) Operating Activities
A
Cash flows from investing activities
Dividends and interest from investments
Proceeds from the sale of investments
Purchase of investments
Net cash provided by/(used in) Investing Activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of the
reporting period
Cash and cash equivalents at the end of the
reporting period
B
Notes on the cash flow statement
A
Reconciliation of net income/(expenditure) to net
cash flow from operating activities
Net movement in Funds as per the Statement of
Financial Activities
Adjustments for:
Dividends, interest and rents from investments
Other movements in investments
(Increase) in debtors
(Decrease)/increase in creditors
Net cash provided by/(used in) Operating Activities
B
Analysis of cash and cash equivalents
Cash at bank and in hand
Total cash and cash equivalents		 2022
2021
£'000
£'000
(5,316)
(8,623)
5
68
4,681
12,152
0
(2,635)
4,686
9,585
(630)
962
1,372
410
742
1,372
(1,048)
(9,081)
(5)
(68)
(3)
(512)
(50)
(248)
(4,210)
1,286
(5,316)
(8,623)
742
1,372
742
1,372

Page 18 of 28

THE GRAND CHARITY

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

1. ACCOUNTING POLICIES

(a) Statement of compliance

The financial statements of The Grand Charity (the “Charity”) have been prepared in accordance with applicable UK accounting standards, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland” (“FRS 102”). Additionally, they comply with the Companies Act 2006, the Charities (Accounts and Reports) Regulations 2008 and the Statement of Recommended Practice “Accounting and Reporting by Charities” (FRS102 second edition) published in 2019 (the “SORP”) in all material respects. The Charity meets the definition of a public benefit entity under FRS 102.

(b) Basis of preparation

The financial statements have been prepared on a going concern basis under the historical cost convention, as modified by the revaluation of investments, on a basis consistent with previous years. The functional currency of the Charity is considered to be Pounds Sterling because that is the currency of the primary economic environment in which the Charity operates.

(c) Going concern

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustees have made this assessment in respect to a period of one year from the date of approval of these financial statements.

The trustees of the Charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The trustees are of the opinion that the Charity will have sufficient resources to meet its liabilities as they fall due.

Page 19 of 28

THE GRAND CHARITY

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

(d) Incoming resources

Revenue is recognised when the significant risks and rewards of ownership have been transferred, the amount of revenue can be measured reliably, it is probable that future economic benefits will flow to the Charity and when the specific criteria relating to each of the Charity’s revenue channels have been met, as described below:

(e) Resources expended

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Charity to that expenditure, it is probable that settlement will be required and the amount of any obligation can be measured reliably. All resources expended are recognised on an accruals basis, with the exception of grants as noted below.

Expenditure on generating funds includes costs of fundraising and maintenance of festival and donor records, together with the management of the investment portfolios. These costs include the allocation of support costs relating to these activities.

Charitable activities are split between masonic activities and grants awarded to external institutions (designated as “non-Masonic” within the SOFA).

Masonic activities include the payment of grants directly to beneficiaries together with related welfare and support costs. Non-Masonic activities consist of the payment of grants to external institutions. Support costs are allocated to these activities on the bases laid out in note 6.

Grants are recognised as expenditure in the year in which the grant is formally approved by the Charity and has been communicated in writing to the recipient, except to the extent that it is subject to conditions that enable the Charity to revoke the award.

The provision for multi-year grants is recognised at its present value when settlement is due over more than one year from the date of the award, there are no unfulfilled performance conditions under the control of the Charity that would permit it to avoid making future payments, settlement is probable and the effect of discounting is material. The discount rate used is the long-term return of inflation plus 4 percent used as the target for the Charity’s investment portfolio.

Page 20 of 28

THE GRAND CHARITY

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

(f) Employee benefits

All staff are employed by the parent charity, The Masonic Charitable Foundation, and recharged to the Charity based upon the relative number of grants processed. Information relating to those employees is given in the accounts of the Masonic Charitable Foundation.

(g) Fund accounting

Unrestricted funds may be utilised for any purpose in accordance with the charitable objectives of the Charity.

(h) Financial assets and liabilities

The Charity has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. Financial assets and liabilities are recognised when the Charity becomes a party to the contractual provisions of the instrument. Financial assets and liabilities which qualify as basic financial instruments are initially recognised at the settlement amount after any trade discounts. They are subsequently valued at amortised cost and assessed for impairment at the end of each reporting period. Where settlement is not expected within 12 months of the balance sheet date, then the asset or liability is discounted using the long term return of inflation plus 4 percent used as the target for the Charity’s investment portfolio . Basic financial instruments include debtors, cash and creditors within the balance sheet.

(i) Taxation

The Charity is exempt from taxation on its income and gains falling within Part 11 of the Corporation Tax Act 2010 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that they are applied to its charitable activities. The Charity is unable to recover Valued Added Tax (VAT) incurred on expenditure. The amount of VAT that cannot be recovered is included within the underlying cost to which it relates.

2. DONATIONS AND LEGACIES

2.
DONATIONS AND LEGACIES
Festivals
Other donations
Legacies
3.
INVESTMENT INCOME
Interest on bank deposits
Income from investment portfolios		 2022
2021
£'000
£'000
0
82
11
14
870
678
881
774
2022
2021
£'000
£'000
0
0
5
68
5
68

Page 21 of 28

THE GRAND CHARITY

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

4.
INVESTMENT MANAGEMENT COSTS
Investment fund management
Support costs
5.
CHARITABLE ACTIVITIES
Masonic
Poverty relief
Support Costs
Non-Masonic
Covid-19 Emergency Grants
Disaster Relief
Health and Disability
Hospices
Isolation in Later Life
Rescue Services
Other Charitable Purposes
Support Costs		 2022
2021
£'000
£'000
13
53
5
20
18
73
2022
2021
£'000
£'000
1,075
4,580
311
1,307
1,386
5,887
58
1,655
97
44
0
28
0
693
273
1,016
0
13
11
463
67
415
506
4,327

Masonic support of £1,075k consisted of 411 grants made to individual beneficiaries. 32 grants were made to charitable institutions; these grants are detailed in annex A to these financial statements.

Auditor’s remuneration of £6k (2021: £12k) is included in support costs to charitable activities.

Page 22 of 28

THE GRAND CHARITY

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

6.
SUPPORT COSTS: 2022
Relief Chest - Fundraising
Fundraising
Legacies
Masonic Support - Grants
Masonic Support - Advice & Support
Masonic Support - Provincial &
Volunteers
Relief Chest - Charitable
Charity Grants
Strategic & Impact
Executive
Finance
Digital & Technology
Human Resources
Communications
Governance
Property management
Administration and Support
Facilities & Admin - Ruspini House
Other		 Cost of
Investment Masonic
Non-
Total
Basis
Generating Management
Masonic
2022
for
Funds
Allocation
£'000
£'000
£'000
£'000 £'000
7
0
0
0
7
(a)
8
0
0
0
8
(a)
4
0
0
0
4
(a)
0
0
58
0
58
(a)
0
0
57
0
57
(a)
0
0
17
0
17
(a)
0
0
10
1
11
(a)
0
0
0
40
40
(a)
0
0
2
0
2
(b)
6
0
31
5
42
(c)
3
6
33
5
47
(c)
0
0
26
4
30
(b)
0
0
12
2
14
(b)
0
0
41
6
47
(b)
0
0
8
1
9
(b)
0
0
29
4
33
(b)
0
0
18
3
21
(b)
0
0
0
0
0
(b)
(2)
(1)
(31)
(4)
(38)
26
5
311
67
409

Basis for allocation

Directly attributed Number of grants processed Headcount and number of grants processed

Page 23 of 28

THE GRAND CHARITY

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

6.
SUPPORT COSTS: 2021
Relief Chest - Fundraising
Fundraising
Legacies
Masonic Support - Grants
Masonic Support - Advice &
Support
Masonic Support - Provincial &
Volunteers
Relief Chest - Charitable
Charity Grants
Strategic & Impact
Executive
Finance
Digital & Technology
Human Resources
Communications
Governance
Property management
Administration and Support
Facilities & Admin - Ruspini House
Other		 Cost of
Investment Masonic
Non-
Total
Basis
Generating Management
Masonic
2021
for
Funds
Allocation
£'000
£'000
£'000
£'000 £'000
33
0
0
0
33
(a)
9
0
0
0
9
(a)
23
0
0
0
23
(a)
0
0
292
0
292
(a)
0
0
197
0
197
(a)
0
0
84
0
84
(a)
0
0
55
20
75
(a)
0
0
0
149
149
(a)
0
0
28
10
38
(b)
15
0
79
29
123
(c)
8
12
78
28
126
(c)
0
0
98
36
134
(b)
0
0
32
12
44
(b)
0
0
152
55
207
(b)
0
0
54
20
74
(b)
0
0
58
21
79
(b)
0
0
75
27
102
(b)
0
0
0
0
0
(b)
14
8
25
8
55
102
20
1,307
4151,844

Basis for allocation

(a) Directly attributed (b) Number of grants processed (c) Headcount and number of grants processed

7. STAFF COSTS

The Charity employed no staff during the year (2021: None). Staff recharges from the MCF to the Charity are included within the management charge analysed in note 6 above.

No trustees received remuneration from the Charity during the year (2021: £Nil). No trustees’ expenses were incurred during the year (2021: £Nil).

Page 24 of 28

THE GRAND CHARITY

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

8.
INVESTMENTS
Current Asset Investments
- Managed Funds
RLAM
MOVEMENTS IN INVESTMENTS
Balance at 1 April 2021
Additions
Disposals
Transfers from/(to) group undertakings
Investment income reinvested
Management fees charged to the fund
Gains/(losses)
Changes in cash balances held
Balance at 31 March 2022
RECONCILIATION TO SOFA
Gains/(losses) on investments
Gains/(losses) within cash balances held
9.
DEBTORS
Prepayments and accrued income
Other debtors
Amounts owed by group undertakings		 March 2022
March 2021
£'000
£'000
0
4,678
0
4,678
4,678
13,683
0
2,635
(4,681)
(12,152)
0
0
1
54
0
(8)
2
466
0
0
0
4,678
2
466
0
0
2
466
March 2022
March 2021
£'000
£'000
0
0
190
471
331
0
521
471

Page 25 of 28

THE GRAND CHARITY

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

10.CREDITORS
Falling due within one year
Amounts owed to group undertakings
Grants payable
Accruals and deferred income
Falling due after more than one year
Grants payable		 March 2022
March 2021
£'000
£'000
0
1,600
493
2,961
0
2
493
4,563
51
191
51
191

11. RELATED PARTY TRANSACTIONS

The MCF has paid out grants on behalf of the Charity during the year, and has been reimbursed by the Charity. Additionally, the MCF has borne all the administrative costs of supporting the Charity as well as its fellow subsidiary charities. The Charity has been recharged a proportion of these costs based upon the relative number of grants processed.

12. LEGAL STATUS

The Charity is a company limited by guarantee and has no share capital. The liability of the member in winding up is limited to £1.

13. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is the Masonic Charitable Foundation (Registered Charity No. 1164703, Company Number 09751836), which is the sole member of the company. Consolidated accounts for the MCF, which include the accounts of the Charity, can be obtained from the registered office of the Charity.

Page 26 of 28

THE GRAND CHARITY

ANNEX A – GRANTS MADE TO CHARITABLE INSTITUTIONS

Charity
Grant
Purpose		 Charity
Grant
Purpose
Disaster Relief
Plan International UK
35,000 Disaster Relief Grant towards the effects of
the Sudan food crisis
Plan International UK
50,000 Disaster Relief Grant towards the effects of
COVID-19 in India
The Salvation Army
12,000 Disaster Relief Grant towards efforts follwogin
flooding in Skewen, Wales
Total
97,0003
Isolation in Later Life
Active and in Touch Frome
7,000 Core Funding
Butterflies Memory Loss Support Group
7,000 Core Funding
InterAct Stroke Support
10,500 Core Funding
Leeds Mind
49,123 Later Life Befriending in Leeds
Leukaemia Care
10,000 Welfare Officer- support for older people
Living Options Devon
18,209 Time to Talk
Maggie's
51,345 Living with and beyond prostate cancer
Queen's Crescent Community Association
28,519 Forever Young - Fighting Covid in Camden
Southend Blind Welfare Organisation
30,000 Talk and support for visually impaired people.
The Third Age Project
15,000 Core Funding
Vista (The Royal Leicestershire Rutland and Wycliffe
Society for the Blind)
53,219 Virtuoactivity
Total
279,91511
Other Charitable Purposes
Cornwall Air Ambulance
1,000 Core Funding (Matched Provincial donation)
Cornwall Blood Bikes
1,000 Core Funding (Matched Provincial donation)
Cornwall Hospice Care
1,000 Core Funding (Matched Provincial donation)
disAbility Cornwall & Isles of Scilly
1,000 Core Funding (Matched Provincial donation)
East Cornwall Search and Rescue Team
500 Core Funding (Matched Provincial donation)
The 3 Pillars-Feeding the Homeless
2,833 Core Funding (Matched Provincial donation)
The Merlin MS Centre
1,000 Core Funding (Matched Provincial donation)
Total
8,3337
COVID-19 Help and Support Programme
The Grand Secretary's Discretionary Fund
5,000 COVID-19 support for Districts - DGL Ghana -
PPE for hospitals
The Grand Secretary's Discretionary Fund
5,000 COVID-19 support for Districts - DGL East
Africa - PPE for hospitals
Total 97,000
Total 279,915
Total 8,333

Page 27 of 28

THE GRAND CHARITY

The Grand Secretary's Discretionary Fund 5,000 COVID-19 support for Districts - DGL KwaZuluNatal - 2 High Flow Oxygen Ventilators The Grand Secretary's Discretionary Fund 1,250 COVID-19 support for Districts - DGL South Africa, Western Division - Breede River Hospice The Grand Secretary's Discretionary Fund 5,000 COVID-19 support for Districts - DGL Bengal - PPE and Food supplies The Grand Secretary's Discretionary Fund 5,000 COVID-19 support for Districts - DGL Trinidad and Tobago - Domestic Violence Shelter The Grand Secretary's Discretionary Fund 5,000 COVID-19 support for Districts - DGL Eastern Archipelago - COVID test kits The Grand Secretary's Discretionary Fund 15,000 COVID-19 support for Districts - DGL Madras, Northern India and Bombay - PPE for hospitals The Grand Secretary's Discretionary Fund 1,250 COVID-19 support for Districts - DGL South Africa, Western Division - Infinity Culinary Training The Grand Secretary's Discretionary Fund 5,000 COVID-19 support for Districts - DGC South Africa, Northern Division - Grocery Vouchers The Grand Secretary's Discretionary Fund 5,000 COVID-19 support for Districts - DGL Nigeria - Hand Sanitisers and face masks Total 57,500 11 Total 442,748 32 Adjustment to prior years (6,800) Overall Total 435,948 Discounting of long term grants (movement) 2,899 Per Accounts 438,847

Page 28 of 28