2022-12-31-accounts

Charity registration number 1177420

SUSSEX MASONIC CHARITABLE FOUNDATION, CIO ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

SUSSEX MASONIC CHARITABLE FOUNDATION, CIO

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees	Mr M B Harris
	Mr T J W Ashdown
	Mr C Dann
	Mr R P Ison
	Dr R M Wicks
	Mr C S Ballard
	Mr P A Lang
	Mr T Newman
	Mr M Lamb	(Appointed 10 May 2022)
Charity number	1177420
Principal address	25 Queens Road
	Brighton
	East Sussex
	BN1 3YH
Independent examiner	Colin Dadswell FCA ACCA DChA
	Caladine Limited
	Chantry House
	22 Upperton Road
	Eastbourne
	East Sussex
	BN21 1BF

SUSSEX MASONIC CHARITABLE FOUNDATION, CIO

CONTENTS

	Page
Trustees' report	1 - 4
Statement of trustees' responsibilities	5
Independent examiner's report	6
Statement of financial activities	7 - 8
Statement of financial position	9
Notes to the financial statements	10 - 21

SUSSEX MASONIC CHARITABLE FOUNDATION, CIO

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2022

The trustees present their annual report and financial statements for the year ended 31 December 2022.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's constitution, the Charities Act 2011 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)" (effective 1 January 2019).

Objectives and activities

The objectives of the charity are relieve sickness and preserve health, advance education and prevent or relieve poverty or financial hardship, amongst such persons as the trustees consider from time to time to be in need of assistance to the extent to which the trustees in their absolute discretion think appropriate; and to further such other purposes (being exclusively charitable) as the trustees may from time to time in their absolute discretion consider appropriate.

Nothing in this constitution shall authorise an application of the property of the CIO for the purposes which are not charitable.

Sussex Masonic Charitable Foundation CIO has succeeded the original Sussex Masonic Charity, established in 1941 by the Provincial Grand Lodge of Sussex, as a separate organisation, but independent of it. It combines the support for Masons and their dependents with a remit to support non-Masonic charities benefiting the wider community by way of grants and donations. The Trustees confirm that they have had due regard to Charity Commission guidance on public benefit in setting the Charity's objectives and activities.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

The Trustees continued to oversee the raising and distributing of funds in accordance with its objects.

Masonic lodges in Sussex have been encouraged to raise their own funds for local charities which have been “match funded” by Sussex Masonic Charitable Foundation, CIO to a maximum of £600. During the year total matched funding applications approved and paid amounted to over £16,500. For larger donations the Trustees have reviewed and approved significant gifts to local charities under the umbrella of an initiative referred to as “Sussex for Sussex” where over £240K was distributed from funds, again, raised by Sussex Freemasons.

This has been another particularly challenging year for everyone given the changing economic climate. The Charity and Trustees have continued to support those charities providing vital help and support.

Other donations to institutions, not included as part of ‘Sussex for Sussex’ above amounted to over £3,000. Amounts donated to individuals in line with the charitable objects amounted to almost £17,000.

Financial review

The results for the year are set out in the Statement of Financial Activities on page 7.

The Charity’s main source of income continues to be derived from donations from Sussex freemasons and dividends from the investment portfolios. The Trustees would like to thank all Lodge members for their continued support.

Total income for the year amounted to £389,110 (2021: £483,839). The expenditure of the charity during the year totalled £334,906 (2021: £241,638). Of this total expenditure, £294,692 (2021: £200,300) related directly to distributions for charitable purposes from its total income and reserves. Administration charges were kept to a minimum with one member of staff supplemented by a dedicated team of volunteers. The financial statements show a headline surplus of £54,204 (2021: surplus of £242,201), excluding the effects of investment gains and losses.

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SUSSEX MASONIC CHARITABLE FOUNDATION, CIO

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Financial effect of significant events – unfortunately with the current status of the economy, the charity has seen another downward movement of its investments. Since the beginning of the year, the year end position has decreased resulting in an annual unrealised loss of £61,332 (2021: unrealised gain of £117,374).

At the date of approving the financial statements, 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 financial statements.

Principle risks and uncertainties - the charity held over £1.49m of investments at the Balance Sheet date, in a balanced portfolio, and uses the interest and dividend income to make grants to local charities across Sussex. The current market uncertainty has meant that the Trustees are keeping scrutiny of market conditions and, with the help of external professional advisors, to seek to minimise the inherent risk.

Principle sources of funding and how these resources support the key objectives of the charity - all (incoming resources) are secured from freemasons or from investment income and are distributed to local freemasons (and their dependents) in times of hardship and to local charities following applications to the Trustees.

The Charity's funds at the year end comprised almost £1.39m in unrestricted funds, £270k in designated funds and £699k in restricted funds. The details of movement in these funds are detailed in Note 20 and 21 to the accounts, and the Charity's reserves policy is set out below.

Investment policy

The investment policy is reviewed by the Trustees, at least once a year and currently the investment objective is for a balance between income and growth with moderate risk. The Trustees are satisfied with the current investment strategy and are confident that the future portfolio performance will be enhanced in the long term. Investments held and the use of cash funds are continually reviewed with our investment advisors.

Restricted and Unrestricted Funds

The General fund of the Charity is unrestricted and both capital and income can be used for the Charity’s objectives. There are six restricted funds at the year end: the Provincial Grand Master’s Relief Fund, the Sussex Masonic Fund, the Sussex for Sussex Fund, the Royal Arch Fund, TLC Fund and the Wilkins Bequest Fund.

The Provincial Grand Master’s Relief Fund is funded annually by Lodges in Sussex and payments are restricted to the charitable needs of Sussex Masons and their dependents. The Sussex Masonic Fund was established during the year ended 31 December 2004 when the Mid Sussex Masonic Trust donated its residual assets to the Provincial Grand Master’s Relief Fund and payments can only be made for Masonic purposes. Sussex for Sussex is an initiative set up in a previous year following the closure of the 2017 Festival. The Wilkins Bequest Fund consists of funds to be utilised in accordance with the charitable purposes decided under the sole discretion of Tilsmore Lodge in accordance with the terms of the will of the late Roger Reginald Thomas Wilkins. The Royal Arch Fund was established during the course of 2017 to ensure that charitable funds raised by Royal Arch Chapter Lodges is governed in accordance with the same mechanisms as Craft masonry. The TLC Fund has been established to record those donations primarily from Lodge donations which are of a restricted nature towards the TLC Appeal, with the associated costs of distributing teddy bears to hospitals within Sussex.

The Bennett Bequest Fund is a designated fund to generate future investment income which can then be utilized to assist the charity in its charitable purposes.

Reserves policy

Sufficient investments must be maintained to produce income to meet the Charity’s costs and to contribute towards the donations and grants provided by the Charity. In addition to this, reserves must be maintained at a sufficient level to meet any unforeseen expenses met by the Charity and to ensure the continuation of the Charity’s work in the event of a downturn in income. Free reserves comprising unrestricted funds at 31 December 2022 were £1,379,755 (2021: £1,318,816). The Trustees do not consider this level of free reserves to be excessive as the majority of funds are held as part of an investment portfolio to earn future income from.

• 2 -

SUSSEX MASONIC CHARITABLE FOUNDATION, CIO

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Welfare and administration

The Trustees would like to express their thanks to the Lodge members, many of whom are Lodge Almoners and Charity Stewards, on whom they rely for their continued support in the help given to Brethren or their dependents who are in need.

Christmas gift cheques are sent to all Sussex Masons, or their dependents, who receive Grand Charity Support and also to children under the age of 18 with Sussex Masonic connections who were in the care of The Royal Masonic Trust for Girls and Boys, now the Masonic Charitable Foundation.

The Trustees would also like to express their thanks to the Brethren who give their time to provide for the proper administration of the Province, especially in the Charities Office, who were supported by one part time paid member of staff.

Plans for future periods

In the short term, the trustees intend for the charity to continue to pursue its charitable objects, continue its investment strategy, and to distribute the income generate in the form of grants and donations.

Structure, governance and management

The Charity was established as a Charitable Incorporated Organisation (CIO) on 5th March 2018 with a Constitution registered with the Charity Commission. The charity was formed following a merger with Sussex Masonic Charities (registration no. 212979) which itself was formed under a Deed of Trust dated 27 June 1941 and a deed of appointment dated 17 August 1961. Subsequently Sussex Masonic Charities ceased registration on 31st December 2019 after completion of a Merger Transfer Agreement which assigned all assets and liabilities to the new charitable foundation on 1st January 2019

The trustees who served during the year and up to the date of signature of the financial statements were:

Mr M B Harris Mr T J W Ashdown Mr C Dann Mr R P Ison Dr R M Wicks Mr C S Ballard Mr P A Lang Mr T Newman Mr M Lamb (Appointed 10 May 2022)

Trustees are appointed at a properly convened meeting of the charity trustees and by a resolution passed by twothirds or more of the charity trustees at the time. The term of office is not fixed.

The charity trustees will make available to each new charity trustee, on or before his first appointment: a copy of the current version of this constitution; and a copy of the CIO’s latest Trustees’ Annual Report and statement of accounts. Additionally, they are given a series of teach ins to inform them of the structure of the various trusts within the Charity and the policies determined by the Trustees from time to time regarding the form of charitable giving. They are also made aware of the obligations of each Trustee in law and the need to ensure proper accounting and investment of funds.

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SUSSEX MASONIC CHARITABLE FOUNDATION, CIO

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

There must be at least three charity trustees. If the number falls below this minimum, the remaining trustee or trustees may act only to call a meeting of the charity trustee or appoint a new charity trustee. The maximum number of charity trustees is fifteen. The charity trustees may not appoint any charity trustee if as a result the number of charity trustees would exceed the maximum.

The Trustees and Officers usually meet six times a year to receive reports and make decisions. However from March 2020, Trustees and Officers have met monthly via virtual meeting spaces. Important decisions required between Trustee meetings are dealt with through the Chairman of the Trustees in consultation with other Trustees as necessary. The decisions are then reported to the board of Trustees at their next meeting for ratification.

To facilitate effective operation of the Charity, the Trustees have delegated responsibility for the day to day administration of the Charity to the Provincial Almoner, Charity Steward and Treasurer, assisted by the Secretary to the Trustees and one member of staff. No Trustees are remunerated or reimbursed for their time or expenses.

Investment Powers

The Trustees have powers to:

(i) appoint a proper and competent person as investment manager,

(ii) delegate to them discretionary powers in relation to the management of the Charity's investments, and (iii) appoint a corporate body, as the Trustees nominee, to hold the investments of the Charity.

The Trustees have appointed Canaccord Genuity Limited to oversee the portfolio and make recommendations. The Trustees retain the right to decide what is bought or sold.

Risk management

As part of its ongoing risk assessment and risk assessment management, the major risks to which the Charity is exposed are continually reviewed and the findings notified to the Trustees at regular meetings or by other communication methods between meetings. The Trustees are satisfied that appropriate measures are being implemented to mitigate the effects of these risks.

The trustees' report was approved by the Board of Trustees.

Mr M B Harris Trustee

30 March 2023

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SUSSEX MASONIC CHARITABLE FOUNDATION, CIO

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2022

The trustees 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).

The law applicable to charities in England and Wales 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 of the charity for that year.

In preparing these financial statements, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The trustees are responsible for keeping sufficient 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 Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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.

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SUSSEX MASONIC CHARITABLE FOUNDATION, CIO

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF SUSSEX MASONIC CHARITABLE FOUNDATION, CIO

I report to the trustees on my examination of the financial statements of Sussex Masonic Charitable Foundation, CIO (the charity) for the year ended 31 December 2022.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of The Association of Chartered Certified Accountants, which is one of the listed bodies.

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

• 1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or

• 2 the financial statements do not accord with those records; or

• 3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Colin Dadswell FCA ACCA DChA

Caladine Limited Chantry House 22 Upperton Road Eastbourne East Sussex BN21 1BF

Dated: 19 April 2023

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SUSSEX MASONIC CHARITABLE FOUNDATION, CIO

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2022

Current financial year Unrestricted Unrestricted Restricted funds funds funds general designated 2022 2022 2022 Notes £ £ £ Income from: Donations and legacies 3 18,504 - 285,716 Other trading activities 4 5,636 - - Investments 5 79,042 - - Other income 6 212 - - Total income 103,394 - 285,716 Expenditure on: Raising funds 7 22,803 - 17,411 Charitable activities 8 3,291 - 291,401 Total expenditure 26,094 - 308,812 Net gains/(losses) on investments 13 (10,136) (6,318) - Net incoming/(outgoing) resources before transfers 67,164 (6,318) (23,096) Gross transfers between funds 20 (7,690) - 7,690 Net movement in funds 59,474 (6,318) (15,406) Fund balances at 1 January 2022 1,329,071 276,966 714,986 Fund balances at 31 December 2022 1,388,545 270,648 699,580	Total 2022 £ 304,220 5,636 79,042 212 389,110 40,214 294,692 334,906 (16,454) 37,750 - 37,750 2,321,023 2,358,773	Total 2021 £ 389,427 7,050 85,427 1,935
		483,839
		41,338
		200,300
		241,638
		130,466
		372,667 -
		372,667 1,948,356
		2,321,023

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

• 7 -

SUSSEX MASONIC CHARITABLE FOUNDATION, CIO

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2022

Prior financial year

Unrestricted Unrestricted Restricted funds funds funds general designated 2021 2021 2021 Notes £ £ £ Income from: Donations and legacies 3 18,821 - 370,606 Other trading activities 4 6,999 - 51 Investments 5 85,427 - - Other income 6 1,935 - - Total income 113,182 - 370,657 Expenditure on: Raising funds 7 33,483 - 7,855 Charitable activities 8 10,196 - 190,104 Total expenditure 43,679 - 197,959 Net gains/(losses) on investments 13 130,466 - - Net incoming/(outgoing) resources before transfers 199,969 - 172,698 Gross transfers between funds 20 (276,966) 276,966 - Net movement in funds (76,997) 276,966 172,698 Fund balances at 1 January 2021 1,406,068 - 542,288 Fund balances at 31 December 2021 1,329,071 276,966 714,986	Total 2021 £ 389,427 7,050 85,427 1,935
	483,839
	41,338
	200,300
	241,638
	130,466
	372,667 -
	372,667 1,948,356
	2,321,023

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SUSSEX MASONIC CHARITABLE FOUNDATION, CIO

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2022

Notes Fixed assets Property, plant and equipment 14 Investments 15 Current assets Inventories 17 Trade and other receivables 18 Cash at bank and in hand Current liabilities 19 Net current assets Total assets less current liabilities Income funds Restricted funds 20 Unrestricted funds Designated funds: 21 General unrestricted funds	2022 £ £ 8,790 1,493,547 1,502,337 7,215 278,150 590,368 875,733 (19,297) 856,436 2,358,773 699,580 270,648 270,648 1,388,545 1,659,193 2,358,773	2021 £ £ 10,255 1,566,046 1,576,301 8,245 394,679 360,795 763,719 (18,997) 744,722 2,321,023 714,986 276,966 276,966 1,329,071 1,606,037 2,321,023	2021 £ £ 10,255 1,566,046 1,576,301 8,245 394,679 360,795 763,719 (18,997) 744,722 2,321,023 714,986 276,966 276,966 1,329,071 1,606,037 2,321,023
			1,576,301 744,722
			2,321,023
			714,986 1,606,037
			2,321,023

The financial statements were approved by the Trustees on 30 March 2023

Mr M B Harris Mr T J W Ashdown Trustee Trustee

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SUSSEX MASONIC CHARITABLE FOUNDATION, CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

Charity information

Sussex Masonic Charitable Foundation, CIO is a Charitable Incorporated Organisation (CIO). The CIO's principal address is 25 Queens Road, Brighton, East Sussex, BN1 3YH.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's Constitution the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, 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 financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

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SUSSEX MASONIC CHARITABLE FOUNDATION, CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies (Continued)

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

Expenditure on raising funds includes all expenditure incurred by the charity to raise funds for its charitable purposes and includes costs of all fundraising activities, events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

1.6 Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. Tangible fixed assets are capitalised if they can be used for more than 1 year and cost at least £1,000.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following basis:

Computer equipment 8 years on a straight line basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Non-current investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.8 Impairment of non-current assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

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SUSSEX MASONIC CHARITABLE FOUNDATION, CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies (Continued)

1.9 Inventories

Inventories are stated at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.10 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. Bank overdrafts are shown within borrowings in current liabilities.

1.11 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ 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.

Financial assets and liabilities are offset, with the 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 trade and other receivables 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 a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including trade and other payables 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 payments 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 payables 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 payables 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.

1.12 Employee benefits

The cost of any material unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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SUSSEX MASONIC CHARITABLE FOUNDATION, CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies (Continued)

1.13 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 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.

3 Donations and legacies

Unrestricted Restricted Total Unrestricted Restricted funds funds funds funds general general 2022 2022 2022 2021 2021 £ £ £ £ £ Donations and gifts 8,504 285,716 294,220 12,821 370,606 Legacies receivable 10,000 - 10,000 6,000 - 18,504 285,716 304,220 18,821 370,606 Donations and gifts Donations 8,504 2,851 11,355 12,821 11,565 Sussex for Sussex - 263,081 263,081 - 336,596 PGM Relief - 9,280 9,280 - 8,890 TLC - 10,504 10,504 - 13,555 8,504 285,716 294,220 12,821 370,606 Other trading activities Unrestricted Unrestricted Restricted funds funds funds general general 2022 2021 2021 £ £ £ Sale of goods and merchandise 5,636 6,999 51	Total 2021 £ 383,427 6,000
	389,427
	24,386 336,596 8,890 13,555
	383,427
	Total 2021 £ 7,050
Sale of goods and merchandise

• 4 Other trading activities

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SUSSEX MASONIC CHARITABLE FOUNDATION, CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

5 Investments

Income from listed investments Interest receivable Other income Other income	Unrestricted Unrestricted funds funds general general 2022 2021 £ £ 68,181 79,428 10,861 5,999 79,042 85,427 Unrestricted Unrestricted funds funds general general 2022 2021 £ £ 212 1,935	Unrestricted Unrestricted funds funds general general 2022 2021 £ £ 68,181 79,428 10,861 5,999 79,042 85,427 Unrestricted Unrestricted funds funds general general 2022 2021 £ £ 212 1,935	Unrestricted Unrestricted funds funds general general 2022 2021 £ £ 68,181 79,428 10,861 5,999 79,042 85,427 Unrestricted Unrestricted funds funds general general 2022 2021 £ £ 212 1,935
Raising funds Unrestricted Restricted funds funds general 2022 2022 £ £ Fundraising and publicity Other fundraising costs - - Support costs 13,603 - Governance costs 2,035 - Trading costs Rituals and teddy bear expenses 6,016 17,411 Investment management 1,149 - 22,803 17,411	Total Unrestricted Restricted funds funds general 2022 2021 2021 £ £ £ - 2,875 - 13,603 21,696 - 2,035 2,671 - 23,427 5,829 7,855 1,149 412 - 40,214 33,483 7,855		Total 2021 £ 2,875 21,696 2,671
			13,684
			412
			41,338

6 Other income

7 Raising funds

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SUSSEX MASONIC CHARITABLE FOUNDATION, CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

8 Charitable activities

Grant giving Sussex for Sussex 2022 2022 £ £ Direct charitable costs 1,648 - Advertising - - Rent and rates - - Sundry expenses 291 - 1,939 - Grant funding of activities (see note 9) 19,878 257,160 Share of support costs (see note 10) - 13,680 Share of governance costs (see note 10) - 2,035 21,817 272,875 Analysis by fund Unrestricted funds - general 3,291 - Restricted funds 18,526 272,875 21,817 272,875 Grants payable Grant giving Sussex for Sussex 2022 2022 £ £ Grants to institutions: Sussex for Sussex donations - 257,160 Donations to other charities 3,000 - 3,000 257,160 Grants to individuals 16,878 - 19,878 257,160	Total 2022 Grant giving Sussex for Sussex 2021 2021 £ £ £ 1,648 6,000 - - 9,268 3,021 - 497 - 291 119 - 1,939 15,884 3,021 277,038 32,950 124,007 13,680 25 21,741 2,035 - 2,672 294,692 48,859 151,441 3,291 10,196 - 291,401 38,663 151,441 294,692 48,859 151,441 Total Grant giving Sussex for Sussex 2022 2021 2021 £ £ £ 257,160 - 124,007 3,000 13,133 - 260,160 13,133 124,007 16,878 19,817 - 277,038 32,950 124,007	Total 2021 £ 6,000 12,289 497 119
		18,905 156,957 21,766 2,672
		200,300
		10,196 190,104
		200,300
		Total 2021 £ 124,007 13,133
		137,140 19,817
		156,957

9 Grants payable

• 15 -

SUSSEX MASONIC CHARITABLE FOUNDATION, CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

10	Support costs Support costs Governance costs £ £ Staff costs 6,766 - Depreciation 1,465 - Bank charges 488 - Office equipment and expenses 3,590 - Staff expenses - - Printing, postage and stationery (26) - Contribution for office services 15,000 - Sundry expenses - - Accountancy - 2,594 Legal and professional - 1,476 Trustees expenses - - 27,283 4,070 Analysed between Fundraising 13,603 2,035 Charitable activities 13,680 2,035 27,283 4,070	2022 Support costs Governance costs £ £ £ 6,766 24,785 - 1,465 1,355 - 488 399 - 3,590 866 - - 489 - (26) 555 - 15,000 15,000 - - 13 - 2,594 - 2,940 1,476 - 1,476 - - 927 31,353 43,462 5,343 15,638 21,696 2,671 15,715 21,766 2,672 31,353 43,462 5,343	2021 £ 24,785 1,355 399 866 489 555 15,000 13 2,940 1,476 927
			48,805
			24,367 24,438
			48,805

The accounts include payments to the Independent Examiner of £1,200 for the independent examination and £1,394 for other services (2021: £1,200 for independent examination work and £1,140 for other services).

11 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

During the year no trustees were reimbursed for any expense (2021: 9 trustees reimbursed £927).

12 Employees

The average monthly number of employees during the year was:

	2022	2021
	Number	Number
Support	1	1

• 16 -

SUSSEX MASONIC CHARITABLE FOUNDATION, CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

12 Employees (Continued)

Employment costs Wages and salaries Social security costs Other pension costs	2022 £ 6,468 212 86 6,766	2021 £ 22,850 1,935 -
		24,785

There were no employees whose annual remuneration was more than £60,000.

13 Net gains/(losses) on investments

Unrestricted Unrestricted funds funds general designated 2022 2022 £ £ Revaluation of investments (55,014) (6,318) Gain/(loss) on sale of investments 44,878 - (10,136) (6,318)	Total Unrestricted funds general 2022 2021 £ £ (61,332) 117,374 44,878 13,092 (16,454) 130,466	Total Unrestricted funds general 2022 2021 £ £ (61,332) 117,374 44,878 13,092 (16,454) 130,466
		130,466

14 Property, plant and equipment

Property, plant and equipment
	Computer equipment
	£
Cost
At 1 January 2022	11,720
At 31 December 2022	11,720
Depreciation and impairment
At 1 January 2022	1,465
Depreciation charged in the year	1,465
At 31 December 2022	2,930
Carrying amount
At 31 December 2022	8,790
At 31 December 2021	10,255

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SUSSEX MASONIC CHARITABLE FOUNDATION, CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

15 Fixed asset investments

Cost or valuation At 1 January 2022 Additions Valuation changes Disposals At 31 December 2022 Carrying amount At 31 December 2022 At 31 December 2021 16 Financial instruments Carrying amount of financial assets Instruments measured at fair value through profit or loss 17 Inventories Finished goods and goods for resale 18 Trade and other receivables Amounts falling due within one year: Other receivables Prepayments and accrued income Amounts falling due after more than one year: Other receivables Total debtors

Listed investments £ 1,566,046 59,327 (61,332) (70,494) 1,493,547 1,493,547 1,566,046 2022 2021 £ £ 1,493,547 1,566,046 2022 2021 £ £ 7,215 8,245 2022 2021 £ £ 49,624 139,402 9,857 12,000 59,481 151,402 2022 2021 £ £ 218,669 243,277 278,150 394,679

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SUSSEX MASONIC CHARITABLE FOUNDATION, CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

19 Current liabilities Other taxation and social security Trade payables Accruals and deferred income	2022 £ 34 1,144 18,119 19,297	2021 £ 906 451 17,640
		18,997

20 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at 1 January 2022 r £ Provincial Grand Master's Relief Fund 62,521 Sussex Masonic Fund 3,309 Sussex for Sussex Fund 614,497 Sussex Royal Arch Fund 18,889 Wilkins Bequest 10,019 TLC Fund 5,751 714,986	Movement in funds Incoming esources Resources expended £ £ 9,280 (7,111) - (9,845) 263,081 (274,447) 2,851 - - - 10,504 (17,409) 285,716 (308,812)	Transfers Balance at 31 December 2022 £ £ - 64,690 6,536 - - 603,131 - 21,740 - 10,019 1,154 - 7,690 699,580	Transfers Balance at 31 December 2022 £ £ - 64,690 6,536 - - 603,131 - 21,740 - 10,019 1,154 - 7,690 699,580
			699,580

Movements for the year ended 31 December 2021

Balance at 1 January 2021 r £ Provincial Grand Master's Relief Fund 70,809 Sussex Masonic Fund 18,794 Sussex for Sussex Fund 425,852 Sussex Royal Arch Fund 16,814 Wilkins Bequest 10,019 TLC Fund - 542,288	Movement in funds Incoming esources Resources expended £ £ 8,890 (17,178) - (15,485) 345,486 (156,841) 2,675 (600) - - 13,606 (7,855) 370,657 (197,959)	Transfers Balance at 31 December 2021 £ £ - 62,521 - 3,309 - 614,497 - 18,889 - 10,019 - 5,751 - 714,986	Transfers Balance at 31 December 2021 £ £ - 62,521 - 3,309 - 614,497 - 18,889 - 10,019 - 5,751 - 714,986
			714,986

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SUSSEX MASONIC CHARITABLE FOUNDATION, CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

20 Restricted funds (Continued)

The Provincial Grand Master's Relief Fund - The Provincial Grand Master's Relief Fund consists of funds utilised for the granting of relief to Sussex Freemasons (including Tylers of Sussex Lodges), their widows and their children and is administered by the Trustees on his behalf.

Sussex Masonic Fund - The Sussex Masonic Fund was established when the Mid Sussex Masonic Trust donated its residual assets to the charity and payments can only be made for Masonic purposes.

Sussex for Sussex Fund - The Sussex for Sussex Fund is an initiative to support a wide range of registered charities in Sussex with no direct masonic connections. Applications are considered by the Trustees and awards made that generally support, but are not limited to, early years, later life, medical research and hospice care.

Wilkins Bequest Fund - The Wilkins bequest Fund consists of funds to be utilised in accordance with charitable purposes decided under the sole discretion of Tilsmore Lodge in accordance with the terms of the will of the later Roger Reginald Thomas Wilkins.

Royal Arch Fund - The SRAF was established when the Sussex Royal Arch Benevolent Fund transferred its assets to the umbrella of Sussex Masonic Charities in 2017 to be allocated by Trustees for masonic and charitable purposes as decided by the Trustees of the Sussex Masonic Charities.

TLC Fund - The TLC Fund has been established to record those donations primarily from Lodge donations which are of a restricted nature towards the TLC Appeal, with the associated costs of distributing teddy bears to hospitals within Sussex.

21 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

	Transfers		Balance at	Revaluations,	Balance at
		1	January 2022	gains and	31 December
				losses	2022
	£		£	£	£
Bennett Bequest Fund	276,966		276,966	(6,318)	270,648

Bennett Bequest Fund - During the year the Trustees reviewed the original Will of the late Mr R Bennett, and it was agreed that the Will did not impose any specific restriction on the funds. It only stated that the funds should be used inline with the charitable purposes, and therefore does not need to be presented as a restricted fund. As such the Trustees have chosen to designate these funds for future capital growth and income generation, rather than show them as restricted funds.

• 20 -

SUSSEX MASONIC CHARITABLE FOUNDATION, CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

22 Analysis of net assets between funds

Unrestricted funds Designated funds Restricted funds 2022 2022 2022 £ £ £ Fund balances are represented by: Property, plant and equipment 8,790 - - Investments 1,222,899 270,648 - Current assets/(liabilities) 156,856 - 699,580 1,388,545 270,648 699,580 Analysis as at year ended 31 December 2021 Unrestricted funds Designated funds Restricted funds 2021 2021 2021 £ £ £ Fund balances are represented by: Property, plant and equipment 10,255 - - Investments 1,289,080 276,966 - Current assets/(liabilities) 29,736 - 714,986 1,329,071 276,966 714,986	Total 2022 £ 8,790 1,493,547 856,436
	2,358,773
	Total 2021 £ 10,255 1,566,046 744,722
	2,321,023

23 Financial commitments, guarantees and contingent liabilities

In addition to the grants payable noted above, the trustees have also pledged certain grants which are subject to the recipient fulfilling certain conditions The total amount pledged but not accrued as expenditure at 31 December 2022 was £50,000 (2021: £50,000).

The pledges are expected to be honoured in the next two years depending on the charity receiving satisfactory applications for the projects. These pledges will be funded out of the Sussex for Sussex restricted fund.

24 Related party transactions

During the year donation were made to the charity by trustees through individual lodges. All donations were made at arms length and had no conditions attached, these amounted to £1,970 (2021:£1,599).

There were no other disclosable related party transactions during the year (2021 - none).

• 21 -