Charity Registration No. 1175246
Company Registration No. 11020585
West Lancashire Freemasons’ Charity Company Limited By Guarantee
Annual Report and Accounts 2020-2021
Helping those in need
West Lancashire Freemasons’ Charity Company Limited By Guarantee Financial Statements for 31 March 2021
| Contents | Pages |
|---|---|
| Professional Advisers | 1 |
| Trustees' Annual Report (Including Directors’ Report) | 2 to 6 |
| Independent Auditor's Report | 7 to 8 |
| Statement of Financial Actvites | 9 |
| Balance Sheet | 10 |
| Statement of Cash Flows | 11 |
| Notes to the Financial Statements | 12 to 19 |
Professional Advisers
| Registered charity name | West Lancashire Freemasons' Charity |
|---|---|
| Company Limited By Guarantee | |
| Charity number | 1175246 |
| Company number | 11020585 |
| Principal address and | West Lancashire Freemasons’ Charity |
| Registered Ofce | 2 Paramount Business Park |
| Wilson Road | |
| Huyton | |
| Liverpool | |
| L36 6AW | |
| Auditor | BWM |
| Chartered Accountants | |
| Castle Chambers | |
| 43 Castle Street | |
| Liverpool | |
| L2 9SH | |
| Bankers | HSBC Bank plc |
| 99-101 Lord Street | |
| Liverpool | |
| L2 6PG | |
| Investment Managers | Rathbone Investment Management |
| Port of Liverpool Building | |
| Pier Head | |
| Liverpool | |
| L3 1NW | |
| Solicitors | Browne Jacobson LLP |
| Mowbray House | |
| Castle Meadow Road | |
| Notngham | |
| NG2 1BJ |
1 WLFC Annual Report and Accounts 2021
Trustees’ Annual Report
The trustees have pleasure in presenting their annual report and financial statements for the year ended 31 March 2021. The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's memorandum and articles of association, the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016).
Legal Status
The charity is registered as a company limited by guarantee (No: 11020585) and as a charity (No: 1175246).
Financial Review
Complete details of the income and expenditure are shown in the statement of financial activities on Page 9 and in the notes to the accounts.
The reserves of the Charity at 31 March 2021 totalled £17.77m (2020- £14.58m).
Total income and endowments in the year amounted to £590,967 compared with £633,175 in the preceding year. Included in the total were legacies of £129,391 (2020 - £178,569), and investment income and interest receivable of £383,353 (2020 - £396,616 ).
Grants paid were £452,969 (2020 - £397,622) . During the year the Charity made several grants to efforts responding to the impact of the Covid-19 pandemic. These ranged over a number of activities involving non-masonic, as well as masonic initiatives. Further information is given under ‘Charitable Activities’ below and in note 6 to the accounts.
Objects and Activities
The Charity has the following objects and activities:
Charitable Support Costs were £ 71,795 (2020- £122,038).
- (1) The relief of Freemasons of the Masonic Province of West Lancashire, their widows, children and any dependants of Freemasons of the Province who are in conditions of need, hardship or distress.
During the year, net realised investment losses were £67,969 (2020 - £27,789) ; and on the revaluation of the investment portfolio at the year end, net unrealised investment gains were £3,265,389 (2020 losses of £821,396).
- (2) To promote the education of children under the age of 25 who are in need of financial assistance and are resident in the Province.
The overall result for the year was an increase in funds of £3,194,209 (2020 - decrease of £802,798).
Investment policy and performance
- (3) The provision of financial assistance to Masonic charitable funds or institutions or other charitable institutions as the trustees shall from time to time decide.
The Charity has referred to the Charity Commission’s general guidance on Public Benefit when reviewing its aims and objectives and has ensured that the grant making policies and activities of the West Lancashire Freemasons’ Charity comply with the requirements.
The Charity continued its policy of adopting a prudent investment strategy which gives a balanced portfolio.
The investment managers engaged during the reporting year were Rathbone Investment Management. They were advised to maximize the total return on the portfolio within the constraints of a medium to low risk strategy. The investment brief is broadly defined. At 31 March 2021, the investment portfolio stood at £16,718,962.
The trustees monitor the investment performance on a quarterly basis.
The trustees have at all times acted in accordance with the trustees’ duties in relation to investments under the Trustees Act 2000.
Cash funds are maintained at a level sufficient for shortterm requirements with a reserve placed on short term deposit at the most advantageous rate of return available at the time of investment.
WLFC Annual Report and Accounts 2021
2
Trustees’ Annual Report (Including Directors’ Report)
Reserves policy
The Charity’s reserve policy is to maintain an adequate level to support its activities, taking account of the risks to which it is exposed and existing and projected levels of income and expenditure. The trustees have taken into account expected shortfalls in voluntary income due to the impact of declining Masonic membership and the effect of the four year Festival for the benefit of the Masonic Charitable Foundation which concludes in 2021.
The trustees are cognisant that the Covid-19 pandemic has caused a profound shock for societies and economies the world over. We also recognise that the future income levels will be under pressure as most companies, including many we invest in, would not have had the contingency plans for this unanticipated and sharp reduction in economic activity. Our current understanding is that expected dividend shortfalls will recover, although we will keep this under review.
Structure, governance and management
The governance and management of the Charity during the year allowed the number of trustees to be not less than five and not more then seven. Trustees can appoint able and willing candidates to be a trustee.
Each term of office is for four years. Trustees can be reappointed for one further term of four years.
On appointment new trustees sign a trustee declaration and a confidentiality agreement and receive a copy of the scheme document; the Charity’s rules and regulations; past annual reports and accounts; minutes of trustee meetings and guidance publications produced by the Charity Commission. New trustees are encouraged to meet with the Chief Executive and his team and gain an understanding of the processes involved in running the Charity.
The trustees meet quarterly with additional meetings called when necessary. At the meetings the trustees consider matters relating to grant making policy, investment strategy, major acquisitions, major grants, business planning and receive reports relating to the administration of the Charity.
All trustees gave freely of their time and no remuneration was paid during the year.
The day to day management of the Charity is the responsibility of the Chief Executive. The Chief Financial Officer has particular responsibility for the proper control of all financial matters. Both attend trustees’ meetings.
The Principal Officers have a team of volunteers whose functions include receiving and checking applications for assistance; assessing and approving grants where appropriate; receiving and recording donations and making payments; controlling finances; meeting statutory requirements; marketing and public relations; dealing with investment managers, auditors, solicitors and suppliers as well as fund raisers within the Province and lodge almoners who deal directly with the applicants; general administration; planning and reporting.
As the Charity’s volunteers are not remunerated for their services but incur costs in travelling to their work, all volunteers may claim a contribution towards these costs based on the HMRC mileage allowance.
All the team members have happily and generously given their time in service to charity and the Trustees wish to record their appreciation and gratitude to all volunteers who work at Huyton.
Risk management
Risk policy involves the trustees in the maintenance of sound business practices in order to avoid unnecessary risk. Our view is that risk management works most effectively when it is applied by all staff involved in running the Charity and it is an established practice to keep all our volunteers informed of and involved in administration matters.
It is the policy to regularly review the risks to which the Charity is exposed and the adequacy of financial controls and to establish systems to mitigate those risks. In 2019 the Charity underwent a full risk assessment as required by The Charities Acts. In all areas the Charity was considered at low or very low risk, confirming that systems and procedures to manage those risks are in place.
.
3 WLFC Annual Report and Accounts 2021
Trustees’ Annual Report (Including Directors’ Report)
Grant making policy
Applications are received through local Freemasons, Masonic groups or direct at the Charity's office. Successful applications need to meet established criteria and supporting evidence is required. Requests for assistance which fall outside the norm may still qualify for help at the trustees' discretion.
The Charity regularly reviews the types of requests it receives and amends qualification requirements and increases resources where they help to meet the Charity's objectives.
A consistent approach to assessing applications and making grants is adopted by the Charity. For individual applicants in financial distress the Charity uses an application form similar to that used by the Masonic Charitable Foundation and requires sight of supporting evidence of financial income, savings and need. Relief is afforded to an applicant by reference to their income measured against the Joseph Rowntree Foundation Minimum Income Standard and by reference to the applicant’s capital position.
Maximum grant levels are reviewed by the trustees on at least an annual basis.
In addition to providing grants to help meet living costs the Charity has also helped with the cost of essential repairs to homes and has provided assistance in financial emergencies.
Charitable activities
The majority of our workload during the year related to handling applications for assistance from individuals in financial distress and the Charity was pleased to give much needed financial support to Freemasons and dependants in need, including those affected by the pandemic lockdown.
Grants to non-masonic causes in the year totalled £142,495 (2019/20 - £97,809). The majority of these were for Covid-19 initiatives, involving hospices, PPE supplies, carer support, food deliveries, community responses and enabling children to connect to on line lessons.
The Charity is keen to make the public aware of the assistance which can be provided by the Charity. Because the Charity does not seek to raise donations from the general public but instead relies on donations made by Freemasons, our role as a public benefactor is not always understood. It is hoped that the level of grants made and our involvement and support for relatively high profile projects will attract wider recognition. Examples of the type of grants given are shown on the Charity’s website: www.westlancsfreemasons.org.uk/wlfc-home.
Fundraising
The Charity relies heavily on donations from Freemasons in the Province of West Lancashire. The Charity continues to raise awareness of its work within the Province and in doing so, it is hoped that those Freemasons will continue to give generously to help the Charity support needy individuals and other worthy causes.
The trustees are mindful that the Fundraising Regulator has recently expressed concerns regarding
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how organisations collect or solicit funds
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relationships with donors
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methods of working with others to raise money
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management of contact preferences and complaints handling
The trustees therefore wish to set out how the Charity raises funds and addresses these issues.
The Charity does not solicit or receive donations from the general public; the funds it receives come purely from Freemasons. The Charity acts indirectly through the umbrella organisation for freemasons in West Lancashire, The Masonic Province of West Lancashire (the Province), to solicit funds.
One of the basic tenets of Freemasonry is charity. To that end the Province;
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sends senior masons annually to all lodges who may speak on the work of the Charity
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organises annual collections across the Province
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encourages lodges of masons to make gifts to the Charity
-
Distributes promotional literature to masonic halls
The general public is not approached.
In total, the Charity made grants responding to Covid-19 pandemic issues amounting to £160,520 during 2020/21.
WLFC Annual Report and Accounts 2021
4
Trustees’ Annual Report (Including Directors’ Report)
Performance
Future Plans
The Charity has a strategic plan which is geared towards:
-
Ensuring prudent financial management
-
Allocating resource to meet demand
-
Increasing awareness of the charity and its activities within both the Masonic and nonMasonic communities
-
Raising the skills of its volunteers
-
Increasing its funds
www.westlancsfreemasons.org.uk, the charity’s website, provides information on the charity and help for applicants and those raising and dispersing funds on its behalf. The charity’s promotional literature, application forms and guidance notes have been updated. A range of leaflets can be downloaded from the website covering the work of the charity; inviting applications for financial assistance; describing how donations can be made; how legacies can be arranged and how Gift Aid can swell the value of donations.
Visitors to the website can check state benefit entitlements and download application forms and guidance notes for grants for charitable causes in the community.
Best business practice is employed in running the charity. Strategic and business plans are in force; a risk register is in use and health and safety reviews are carried out on a regular basis.
All applications are handled confidentially and all team members are required to sign a confidentiality agreement.
The four year Festival for the benefit of the Masonic Charitable Foundation has impacted upon West Lancashire Freemasons’ Charity. Although voluntary income from Masons’ donations has continued, these have been at a significantly lower level than before the Festival. The Charity had predicted that this would be the case, and had framed their reserves policy accordingly. The festival is due to end in September 2021 and the Trustees will be starting a campaign to attract donations towards the Charity with the aim of steadily building donation income back to pre Festival levels.
Non-masonic giving has for many years been a major constituent of the Charity’s work. The Charity’s policy is to seek to make 3 or 4 awards each year, of £25,000 or more in each instance , with the aim of making a significant impact on the organisation supported and, hopefully, increasing and improving the profile of Freemasonry in general. (During the year to March 2021 non–masonic giving concentrated on giving assistance to Covid-19 initiatives.)
The principal objective of the Charity is and will continue to be the relief of Freemasons and their connections, and to this end the Board will continually review the upper level of masonic grants payable.
Trustees
The trustees who served the charity during the period were as follows:
J. H. Smith (Chairman, resigned 18 August 2021) D. J. Parkinson (Deputy Chairman, Chairman from 2nd September 2021)
B. K. Crossley (Deputy Chairman from
2nd September 2021)
C. J. Rowling J. D. Gibbon
D. C. W. Fairclough
5 WLFC Annual Report and Accounts 2021
Trustees’ Annual Report (Including Directors’ Report)
Statement of trustees’ responsibilities
The trustees, who are also directors of the Charity for the purposes of company law, are responsible for preparing the Trustees’ Report 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 Charity and of the incoming resources and application of resources, including the income and expenditure, of the Charity for that year. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently
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observe the methods and principles in the Charities SORP
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make judgements and estimates that are reasonable and prudent
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue its operations
The trustees are responsible for keeping adequate accounting records that 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 assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the charity and financial information included on the Charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Auditor
A resolution proposing that BWM be reappointed as auditors of the company will be put to the members.
Disclosure of information to auditor
Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.
Small company provisions
This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.
Approved by the Trustees on 2nd December 2021
D. J. Parkinson
H. D. Lloyd
Chairman Chief Executive Officer
WLFC Annual Report and Accounts 2021
6
Independent Auditor’s Report to the Members Of West Lancashire Freemasons’ Charity
Opinion
We have audited the financial statements of West Lancashire Freemasons’ Charity for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the 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:
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give a true and fair view of the state of the charity’s affairs as at 31 March 2021 and of its incoming resources and application of resources, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
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 accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts 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
We have nothing to report in respect of the following matters in relation to which the ISAs(UK) require us to report to you where:
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the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
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the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such
material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of our audit:
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the information given in the trustees' report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the directors’ report included within the trustees' report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in 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:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the trustees' report and from the requirement to prepare a strategic report .
Responsibilities of Trustees
As explained more fully in the Statement of Trustees’ Responsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as 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 charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to cease operations, or have no realistic alternative but to do so.
7 WLFC Annual Report and Accounts 2021
Independent Auditor’s Report to the Members Of West Lancashire Freemasons’ Charity
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.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, was as follows:
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the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
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we identified the laws and regulations applicable to the company through discussions with directors and other management;
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we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment and health and safety legislation;
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we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence;
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identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non–compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur,by
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making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
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considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
In response to the risk of irregularities and non-compliance with laws and regulations,we designed procedures which included, but were not limited to:
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agreeing financial statement disclosures to underlying supporting documentation;
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reading the minutes of meetings of those charged with governance; and
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enquiring of management as to actual and potential litigation and claims.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Audit standards also limit the audit procedures required to identify noncompliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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 auditors’ 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.
Peter Taaffe FCA CTA DChA (Senior Statutory Auditor) For and on behalf of BWM Chartered Accountants Statutory Auditor
2nd December 2021 Castle Chambers 43 Castle Street Liverpool L2 9SH
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performed analytical procedures to identify any unusual or unexpected relationships;
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tested journal entries to identify unusual transactions; and
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assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
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Investigated the rationale behind significant or unusual transactions.
8 WLFC Annual Report and Accounts 2021
Statement of Financial Activities Statement of financial activities Including Income And Expenditure Account for the Year Ended 31 March 2021
| Unrestricted Funds | Unrestricted Funds | ||
|---|---|---|---|
| 2021 | 2020 | ||
| Note | £ | £ | |
| INCOME AND ENDOWMENTS FROM: | |||
| Donatons and legacies | 2 | 207,614 | 236,559 |
| Investments | 3 | 383,353 | 396,616 |
| ---------------------- | —-------------------- | ||
| TOTAL INCOME AND ENDOWMENTS | 590,967 | 633,175 | |
| ---------------------- | —-------------------- | ||
| EXPENDITURE ON: | |||
| Raising funds | 4 | 69,414 | 67,128 |
| Charitable actvites | 5 | 524,764 | 519,660 |
| ------------------------ | —-------------------- | ||
| TOTAL EXPENDITURE | 594,178 | 586,788 | |
| ------------------------ | —-------------------- | ||
| Net gains / (losses) on disposal of | |||
| investment assets | (67,969) | (27,789) | |
| Unrealised gains / (losses) on | |||
| investments | 9 | 3,265,389 | (821,396) |
| ------------------------ | —--------------------- | ||
| NET INCOME / (EXPENDITURE) / NET | |||
| MOVEMENT IN FUNDS | 3,194,209 | (802,798) | |
| RECONCILIATION OF FUNDS | |||
| Total funds brought forward | 14,576,733 | 15,379,531 | |
| ------------------------ | -----—--------------- | ||
| TOTAL FUNDS CARRIED FORWARD | 17,770,942 | 14,576,733 | |
| ===================== | ==================== |
The Statement of Financial Activities includes all gains and losses recognised in the year. All of the above amounts relate to continuing activities.
The Statement of Financial Activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
The notes on pages 12 to 19 form part of these financial statements
WLFC Annual Report and Accounts 2021
9
Balance Sheet as at 31 March 2021
| 2021 | 2020 | ||||
|---|---|---|---|---|---|
| Note | £ | £ | £ | ||
| FIXED ASSETS | |||||
| Tangible Fixed Assets | 8 | 436,300 | 442,058 | ||
| Investments | 9 | 16,718,962 | 13,477,168 | ||
| --------------------— | ----------------------- | ||||
| TOTAL FIXED ASSETS | 17,155,262 | 13,919,226 | |||
| -——————— | ———————- | ||||
| CURRENT ASSETS | |||||
| Debtors | 11 | 14,989 | 35,001 | ||
| Short term deposits | 401,394 | 501,394 | |||
| Cash at bank | 295,388 | 238,053 | |||
| ----------------------- | ----------------------- | ||||
| 711,771 | 774,448 | ||||
| CREDITORS: Amounts falling due within one year | 12 | (96,091) | (116,941) | ||
| ----------------------- | ----------------------- | ||||
| NET CURRENT ASSETS | 615,680 | 657,507 | |||
| -------------------- | —------------------ | ||||
| TOTAL NET ASSETS | 17,770,942 | 14,576,733 | |||
| ============= | ============== | ||||
| FUNDS OF THE CHARITY | |||||
| Total unrestricted funds | 17,770,942 | 14,576,733 | |||
| ================== | ================== |
These financial statements were approved and signed on 2nd December 2021 on behalf of the trustees by:
D. J. Parkinson B. K. Crossley P. L. McLachlan Trustee Trustee Chief Financial Officer
Company Registration No. 11020585
The notes on pages 12 to 19 form part of these financial statements
10 WLFC Annual Report and Accounts 2021
Statement of Cash Flows for the Year Ended 31 March 2021 Statement of financial activities
| 2021 | 2020 | ||
|---|---|---|---|
| Note | £ | £ | |
| CASH FLOWS FROM OPERATING ACTIVITIES | |||
| Net cash provided by / (used in) operatng actvites | 13 | (381,644) | (264,252) |
| ------------------ | ------------------ | ||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||
| Dividends and interest from investments | 383,353 | 396,474 | |
| Purchase of equipment | _ | (340) | |
| Proceeds from sale of investments | 3,922,669 | 3,140,424 | |
| Purchase of investments | (3,337,841) | (3,557,824) | |
| ------------------ | ------------------ | ||
| Net cash provided by / (used in) investng actvites | 968,181 | (21,266) | |
| ------------------ | ------------------ | ||
| Change in cash and cash equivalents in the reportng period | 586,537 | (285,518) | |
| Cash and cash equivalents at the beginning of the reportng period | |||
| 14 | 854,341 | 1,139,859 |
|
| ---------------------- | ---------------------- | ||
| Cash and cash equivalents at the end of the reportng period | 14 | 1,440,878 | 854,341 |
| ============== | ============== |
The notes on pages 12 to 20 form part of these financial statements
WLFC Annual Report and Accounts 2021
11
Notes to the Financial Statements
Charitable expenditure
1. Accounting policies
Direct charitable activity expenditure includes all expenditure incurred in the provision of charitable services, together with support costs, in pursuance of the charity's objectives.
Charity Information
West Lancashire Freemasons’ Charity is a private company limited by guarantee incorporated in England and Wales. The registered office is
Grants payable are payments made to third parties in the furtherance of the charitable objects. Funds are allocated in accordance with the objectives set out on page 2.
2 Paramount Business Park, Wilson Road, Huyton, Liverpool L36 6AW.
The irrecoverable element of VAT is included with the item of expenses to which it relates as this in cannot be recovered by the charity. Expenses are charity's allocated based on a detailed assessment of the association, relative activity.
Accounting convention
The accounts have been prepared in accordance with the charity's memorandum and articles of the Companies Act 2006 and “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)” as amended for accounting periods commencing from 1 January 2016.
Tangible fixed assets
to
Tangible fixed assets are measured at cost, net of depreciation and any impairment losses. Individual assets costing £250 or more are capitalised at cost. Depreciation is provided on a straight line basis on tangible fixed assets which are written off over their useful economic life which is :-
The charity is a Public Benefit Entity as
| Long Leasehold Property | 125 years |
|---|---|
| Ofce equipment | 5 years |
Computer equipment |
4 years |
defined by FRS 102.
The accounts are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
Fixed asset investments
Investments are stated at market value as at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year.
The accounts have been prepared under the historical cost convention modified to include certain financial instruments at fair value. The accounting policies adopted are set out below.
Realised gains and losses
All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between the sales proceeds and opening market value or purchase cost, if later. Unrealised gains and losses are calculated as the difference between the market value at the year end and opening market value or purchase cost if later.
Income and endowments
Voluntary income including donations and gifts are recognised in the period in which they are received by the charity. Such income is only deferred when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period. In accordance with this policy, legacies are included when received by the charity.
Funds accounting
All funds held by the charity are funds which can be used in accordance with the charitable objects at the discretion of the trustees.
Expenditure on raising funds
The costs consist of investment management fees.
12 WLFC Annual Report and Accounts 2021
Notes to the Financial Statements
Taxation
The charity benefits from various exemptions from taxation afforded by tax legislation and is not liable to corporation tax on income or gains falling within those exemptions. Recovery is made of tax deducted from income and from receipts under Gift Aid. The charity is not able to recover Value Added Tax. Expenditure is recorded in the accounts inclusive of VAT.
Charitable funds
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.
Going concern
At the time of approving the accounts, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis in preparing the accounts.
At the time of approving the accounts and as detailed in the Trustee’s report the Trustees have considered the impact of Covid-19 on the charity and the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus, the Trustees continue to adopt the ‘going concern’ basis of accounting in preparing the accounts.
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short term liquid investments with original maturities of three months or less and bank overdrafts.
Financial instruments
The Charity has elected to apply the provisions of section 11 “Basic Financial Instruments” and section 12 “Other Financial Instrument Issues” of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Charity’s balance sheet when the Charity becomes party to the contractual provisions of the instrument. Final assets and liabilities are offset, with net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at the market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.
Critical accounting estimates and judgements
In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
WLFC Annual Report and Accounts 2021
13
Notes to the Financial Statements
2. Donations and legacies
3. |
2021 2020 £ £ |
|---|---|
| Donatons General 54,734 33,922 Gif aided donatons 18,791 19,254 Recoverable income tax 4,698 4,814 Legacies Legacies 129,391 178,569 ------------------- --------------— |
|
| 207,614 236,559 |
|
| ============= ============= 2021 2020 £ £ Income from investments |
|
| Income from listed investments 382,676 394,211 Bank interest receivable 677 2,405 ------------------- --------------— |
|
| 383,353 396,616 |
|
| ============= ============== |
14[WLFC Annual Report and Accounts 2021 ]
Notes to the Financial Statements
4. Expenditure on raising funds
| 5. | 2021 2020 £ £ Expenditure on charitable actvites 2021 2020 £ £ Investment managers’ fees 69,414 67,128 =========== =========== |
|---|---|
| Grants paid Freemasons’ support 137,975 124,891 Widows’ support 117,384 152,233 Other masonic support 55,115 22,689 Non-masonic grants (note 6) 142,495 97,809 ------------------ ------------------ 452,969 397,622 ------------------ ------------------ Support costs Rates & water 7,087 9,260 Heatng, lightng and insurance 6,194 6,085 Telephone 3,362 4,286 Postage, statonery & printng 3,887 5,873 Travelling expenses 6,205 10,384 Computer expenses 25,205 46,859 Ofce maintenance and repairs 5,723 5,147 Bank charges 991 1,456 Other costs 313 3,092 Depreciaton 5,758 22,398 Auditor’s remuneraton 7,070 7,035 Legal and professional fees - 163 ————— ————— 71,795 122,038 ————— ————— |
|
| 524,764 519,660 |
|
| ============== =============== |
WLFC Annual Report and Accounts 2021 15
Notes to the Financial Statements
6. Non Masonic Grants
| £ | ||
|---|---|---|
| Covid initatves: | PPE supplies and hospice equipment | 24,761 |
| support for carers | 15,750 | |
| community centres including women and chidren aid | 20,200 | |
| connectng kids | 24,000 | |
| food banks and meals on wheels | 30,327 | |
| other Covid-19 related grants | 16,150 | |
| Other grants including for youth and disabled applicants support | 11,307 | |
| ______ | ||
| 142,495 | ||
| ______ |
7. Trustee remuneration and related party transactions
The Trustees received neither remuneration for their services nor reimbursement for travel expenses in the year. (2020 : nil). Key Management are all volunteers and did not receive remuneration during the year (2020: £nil). Volunteers are reimbursed travel expenses during the year.
No trustee or other person related to the charity had any personal interest in any transaction entered into by the charity during the year (2020- nil).
8. Tangible Fixed Assets
| Leasehold | Ofce | Computer | Total | |
|---|---|---|---|---|
| Property | Equipment | Equipment | ||
| £ | £ | £ | £ | |
| At cost at start of year | 477,092 | 29,746 | 94,019 | 600,857 |
| Additons during year | _ | _ | _ | _ |
| ------------------ | -------—------ | ------------------ | ------------------ | |
| At cost at end of year | 477,092 | 29,746 | 94,019 | 600,857 |
| ============== | ============= | ============== | ============== | |
| Depreciaton at start of year | 37,213 | 29,440 | 92,146 | 158,799 |
| Depreciaton during year | 3,817 | 68 | 1,873 | 5,758 |
| ----------------- | ----------------- | ----------------- | ----------------- | |
| Depreciaton at end of year | 41,030 | 29,508 | 94,019 | 164,557 |
| ============= | ============= | ============= | ============= | |
| Net Book Value at 31st March 2021 | 436,062 | 238 | _ | 436,300 |
| ============== | ============= | ============== | ============= | |
| Net Book Value at 31st March 2020 | 439,879 | 306 | 1,873 | 442,058 |
| ============== | ============ | ============== | ============= |
WLFC Annual Report and Accounts 2021 16
Notes to the Financial Statements
9. Investments
Movement in market value
| 2021 | 2020 | ||
|---|---|---|---|
| £ | £ | ||
| Market Value at 1st April 2020 | 13,477,168 | 14,398,752 | |
| Acquisitons at cost | 3,337,841 | 3,557,824 | |
| Disposal at opening book value | (3,990,636) | (3,168,213) | |
| Net gains/(losses) on revaluatons in the year ended 31 March 2020 | 3,265,389 |
(821,396) | |
| Net movement in cash held for investment | 629,200 | (489,799) | |
| ------------------------ | ------------------------ | ||
| Market value at 31 March 2021 | 16,718,962 | 13,477,168 | |
| =================== | =================== | ||
| Historical cost at 31 March 2021 | |||
| 13,273,347 | 13,200,972 | ||
| =================== | ==================== | ||
| Analysis of investments at 31 March 2021 | |||
| 2021 | 2020 | ||
| £ | £ | ||
| Listed investments | |||
| UK quoted shares | 15,974,867 | 13,362,274 | |
| Other investments | |||
| UK Cash held by Rathbone Investment Management as part of | |||
| Portolio | 744,095 | 114,894 | |
| ------------------------- | -------------------------- | ||
| 16,718,962 | 13,477,168 | ||
| =================== | ==================== |
17 WLFC Annual Report and Accounts 2021
Notes to the Financial Statements
10. Financial Instruments
| 2021 | 2020 | |||
|---|---|---|---|---|
| £ | £ | |||
| Carrying amount of fnancial assets | ||||
| Debt instruments measured at amortsed cost | 1,451,639 | 884,429 | ||
| Instruments measured at fair value through the SOFA | 15,974,867 | 13,362,274 | ||
| Carrying amount of fnancial liabilites | ||||
| Measured at amortsed cost | 96,091 | 116,909 | ||
| 11. Debtors | ||||
| Amounts due within one year: | ||||
| 2021 | 2020 | |||
| £ | £ | |||
| Income tax recoverable | 4,228 | 4.881 | ||
| Prepayments | 0 | 32 | ||
| Accrued Interest | 10,761 | 30,088 | ||
| ----------------- | ----------------- | |||
| 14,989 | 35,001 | |||
| ============= | ============= | |||
| Amounts due afer more than one year: | ||||
| 2021 | 2020 | |||
| £ | £ | |||
| Other debtors | 0 | 0 | ||
| ============== | ============== | |||
| 12. Creditors: Amounts falling due within one year | ||||
| 2021 | 2020 | |||
| £ | £ | |||
| Other creditors | 674 | 0 | ||
| Accruals and deferred income | 95,417 | 116,941 | ||
| ----------------- | ---—---------- | |||
| 96,091 | 116,941 | |||
| ============= | ============= |
WLFC Annual Report and Accounts 2021
18
Notes to the Financial Statements
13. Reconciliation of Net Income/(Expenditure) to Net Cash Flow from Operating Activities
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Net Income/(Expenditure) for the Reportng Period (as per the Statement of | ||
| Financial Actvites) | 3,194,209 | (802,798) |
| Adjustments for: | ||
| Depreciaton charges | 5.758 | 22,398 |
| (Gains)/Losses on Investments | (3,197,420) | 849,185 |
| Dividends and Interest from Investments | (383,353) | (396,474) |
| (Increase)/decrease in debtors | 20,012 | 6,214 |
| Increase/(decrease) in creditors | (20,850) | 57,223 |
| ------------------- | -----—---------- | |
| Net Cash Provided by (Used in) Operatng Actvites | (381,644) | (264,252) |
| ============== | ============== | |
| 4. Analysis of Cash and Cash Equivalents | ||
| 2021 | 2020 | |
| £ | £ | |
| Short term deposits | 401,395 | 501,394 |
| Cash at bank | 295,388 | 238,053 |
| ------------------- | -----—---------- | |
| 696,783 | 739,447 | |
| Cash held as part of the investment portolio | 744,095 | 114,894 |
| ------------------- | -----—---------- | |
| Total Cash and Cash Equivalents | 1,440,878 | 854,341 |
| =============== | =============== |
14. Analysis of Cash and Cash Equivalents
15. Company Limited By Guarantee
West Lancashire Freemasons’ Charity is incorporated under the Companies Act as a company limited by guarantee. The liability of the members is limited to £1.
19 WLFC Annual Report and Accounts 2021
West Lancashire Freemasons’ Charity 2 Paramount Business Park Wilson Road Huyton Liverpool L36 6AW
Tel: 0151 482 4750
Website: http://www.westlancsfreemasons.org.uk