ROYAL MASONIC HOSPITAL CHARITY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Charity Number: 205793
ROYAL MASONIC HOSPITAL CHARITY Contents Paga Trustee's Annual Report Statement of Trustee's Responsibilities AL1t0S Report Statement of Financial Activities 12 Balance Sheet 13 ststement of Cash Flows 14 Notes to the Financlal Statements 15 Page 2of17
ROYAL MASONIC HOSPITAL CHARITY TRUSTEE'S ANNUAL REPORT The trustee is pleased to submit ils report for the year ended 3151 March 2024. Reference and Admlnlstratlve Information Name and Reglstered Office Th8 name of the charity is Royal Masonic Hospital Charity (the 'Charitl') and its principal office is located at 60 Great Queen Street, London, WC2B 5AZ. Trustees Th8 Trustee who served durlng the thole of the year was.. The Masonic Charitable Foundation ('MCF°} (Corporate Trustee, Registered Charity No. 1164703. Company Number 09751836) The Irustees of the MCF who served during th8 year were.. John Boyington. CBE (Resigned 3111 July 2023) Sinead Brophy (R8519ned 31ts1 July 2023) Simon Duckworth, OBE, DL (Resigned 3111 July 2023> Cliv8 Emerson {Appointed Treasurer 111 August 2023) Dr Simon Fellerman Edward Goodchild (Appointed 1$1 Augusl 2023) Alan Graham, MBE Anlony Harvey (Resigned 31 &1 July 2023) Christopher Head Michael Heenan (Treasurer) (Resigned 3111 Juty 2023) James Long, TD {Presidentl (Appointed Chaiman 111 January 2024) Charlott8 Miller (Appointed co-optee 111 August 2023) stephen Robinson Marie Shenlon {Appoint8d 111 August 2023) David Southern Bruce Walker Andrew Wauchope (Resigned 3181 July 2023) Sir Paul Williams. OBE, KStJ, DL {D8PUty Psident and Chairman to 31st December 2023) Howard Wilson Pag83of17
ROYAL MASONIC HOSPITAL CHARITY TRUSTEE'S ANNUAL REPORT Ex•cutiVO The Executive during the year to 318t March 2024 were: Les Hutchinson, Chief Executive Charles Angus, Group Finance Director Brenda Nurse, Company Secretary Auditor Knox Cropper LLP, Chartered Accountants, 65 Leadenhall Street, London. EC3A 2AD Bankers National Westrninster Bank Plc, Bloomsbury Parrfs Branch, 214 High Holborn. London, WC1V 7BX Sollcltors Stone King LLP. Boundary House, 91 Charterhouse Street, London. EC1 M 6HR Page4of17
ROYAL MASONIC HOSPITAL CHARITY TRUSTEE'S ANNUAL REPORT Structure, Governance and Management Organisation The Royal Masonic Hospital Charity is an unincorporated association, the rules of which are set out in its Constitution as amended by Orders of the High Court daled 21 October 1986 and 20 July 1999. 11 is a reglslered charity (number 205793). The charity fomierly operated the Royal Masonic Hospital In Ravenscourt Part(, London until Its closure in 1996. After a period of receivership vthich began in 1994. overall control of the Charity was transferred on the 28 June 2002 to the trustees. The trustees are the persons who from time to time constitute the trustees of the Masonic Samaritan Fund, company number6876310. registered charity number 1130424 ("MSF'). On 1 April 2016, MSF bacame a subsidiary of the Masonic Charitable Foundation (°MCF', company number 09751836, registered charity nurnber 1164703). and the MCF Is now Its sole trustee. As the so18 trustee, the MCF exercises control over the Charity, and will consolidate the Charity's results In Ils group accounts. Delalls of the processes for the appolntrnent. induction and training of the MCF'S trustees are given in the annual report and accounts of that company. Governanc• and Manag•mont All governance and management capabilities are provided by the MCF and d8tails of the relevant committees and processes are prowded in the annual report and accounts of that company. Trustees and committees of th8 MCF addrass the spe¢lfi¢ needs of the Charity as part of their roles and r8sponsibilities for the MCF. The trustee board and the main committees meet as follow5.. 8oardlComrnltteo Purpo*• Meetlngs por ear Trustee 808rd Main decision-making body with ultimate responsibility for th8 Charil Identification and mitigation of risk, oversight of external audit Audlt and Rlsk Finance Ensuring adequate procedures are in place lo manage all aspect5 of financial planning, controlling and r8POrting. Determination of executive and staff pay & benefits Remunaration Strategy Developmènt and implementation of strategies to support the Charity's objectives. In addition, the truste88 hold an annual strate ic 'awa The Charity does not employ any staff, with services being provlded by staff employed by the MCF. Page 5of17
ROYAL MASONIC HOSPITAL CHARITY TRUSTEE'S ANNUAL REPORT Objectives and Activities The objects of tho Charity The objects of the Charity are the relief of poverty amongst those Freemasons and their dependants who are sick or infim. The main activities The Charitys objective for the year was to ensure Ihe receipl of the legacy income to 1¢h th8 Charity wa5 entitled. and to ensure that this income is donated to its parent charity, the MSF. This was achieved, with a total of £49,000 (2023: £109,000) being receivable during the period. In planning the objective for the year, the Trustee has had regard to the guidance on public benefit issued by the Charity Commission. Financlal Revlew Legacy Income Legacy income is by its natur8 unpredictabla, and. following the closure of the hospital, il is anticipated that th8 long t6mi tr8nd will b8 downwards. However il is believed that the number of potential legacies which will come to the Charity in the future remalns substantial. The Charity is not actively seeking donations or new legacies. Charltsble Expendltur• During the p8riod a total of£40,000 (2023: £108,000) vms paid Sn grants to MSF. Reserves Pollcy The Trust88 h88 det8rmlned Ihat mlnlmal res8rves are mainl8in8d with annual legacy income received b8ing transférred to the immediate par8nt charity, the Masonic Samaritan Fund ('MSF'). Plans for Future Perlods RMHC will continue to collect legacy income and transfer it to the MSF. Page 6 of 17
ROYAL MASONIC HOSPITAL CHARITY TRUSTEE'S ANNUAL REPORT Principal Risks and Mitigation Th8 pnncipal risks identified and agreed actions to mitigate are shown in the following table: Rlsk Granls made outside the Charity $ Objects and eralin ui(Jelines Cyberallack on IT systems Cons uence Repulalional damage, loss of confidence with key stakeholders and otenlial Iruslee liabili Operational disruption 8ltIng In financial. repulalional. legal and regulatory damage. Miti atlon Strong procedures and controls for processing grants. Over5ighl from Masonic rt and Charil Granls commillees UGLE manage and monitor networks, servers and backup systems, and has deployed appropriate defence mechanisms e,g. firewalls, antivirus elc. Third party hosted systems lapplicatlons have relevant controls and securlty regimes. Information systems are only acce85ed via the VPN network andlor multl- factor authenlic81ion prolwols. PICF'S Informatlon Securlly Group IISGI have various digital & IT procedures and policies in place. Cyber awareness and trainin ramme mandalo for all staff. Data protection policy, IT security and HR olicies in lace Flnan¢lal procedures. segregation of dulles, aulhority Ilmits, IT $ur¢IY, increa8ed awareness amon st staff MCF Business Conlinully Plan Data prolectSon breach Reputational damage and significant rinancial en811ies Flnancial1055, repulalional damage, adverse impact upon 81aff Fraud Unavailabillly of office accommodation Loss of paper records from firemoodlng Operations compromised 8reach of legal obligations. adverse impact upon operation8, potential financial enallies 8reach of legal obligations. polenllal financial penalties. breakdown of 51aff morale and adverse Impact on servlce rovlslon OperalSonal breakéown, adverse impact upon staff morale. poor service lo beneficiaries and potentl81 utalSon81 dama Reduced r81iance on paper récords with Increasad use of IT. Lack of compliance th employment legislation HR procedures and Staff handbook. Inducllon proce¥se5 for new staff. Orwing management training 8nd Personal Develo ment Review HR procedure5.' organi5alional and sucGession planning. Comprehensive doGumenlalion of procedures and controls Undue reliance on key persons Risks are actively monitored by the Executive and the senior leadership team, and formally reviewed by the audit 8nd risk committee at their quarterly meetings. Page 7of17
ROYAL MASONIC HOSPITAL CHARITY STATEMENT OF TRUSTEE'S RESPONSIBILITIES Statement of Responslbilltles The Twstee is responsib18 for preparing the trustee's report and financial statements in aGGordance with applicable law and United Kingdom Accounting Stsndards (U.K. 'GAAP"). The law appli¢able to charities in England and Wales, the Charities Act 2011, the Charity {Accounts and R8POrts) Regulations 2008 and the provisions of the trust deed requir8 th8 Trustee to prepare financial statements for each financial year which give a true and fair view of the stale of affairs of the Charity and of the incorne and expenditure of the Charity for that year. In preparing these financial statements, the Trustee Is required lo= select suitable accounting policies and then 8pply them consistently,. observe the methods and principles in Accounting and Reporting by CharSties.' Statement of Recommended Practice applicable to charities preparing their financial stalemenls in accordance with the Financial Reporting Standard appllcable In the Uni18d Kingdom and Republic of Ireland IFRS102)' make judg8m8nts and 8Stirnates that are reasonable and prudent: state whether United Kingdom accounting standards have been followed, subject to any material departures disclosed and 8xplained in the financial statements,. and prepare the financial statements on the going concern basis unles5 It is inappropriate to presum8 that the charity will continue lo operate. The Trust88 is responsible for keeping adequate accounting records that disclose with reasonable accuracy al any time the financial position of the Charity and enable it to ensure Ihat the financial stat8ments comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. It is also responsible for safeguarding the assets of the Charity and for taking reasonable steps for the prevention and detection of fraud and other irregularlties. Audltor A resolution proposing that Knox Cropper LLP be reappointed as auditor wlll b8 Put to the members. Approval by Trustee This report, was approved by the Trustee on 12th September 2024 and sign8d on its behalf by am Long, President and Chalmian, MCF Pag88of17
ROYAL MASONIC HOSPITAL CHARITY REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEE OF THE ROYAL MASONIC HOSPITAL CHARITY We have audited th8 financial statements of the Royal Masonic Hospital Charity (the'charitl,) for th8 yaar 8nded 31 March 2024, bvhich comprise the Statement of Financial Activitie5, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting polici8s. The financial reporting framework that has been applied in their pr¶tion is applirAble law and United Kingdom Accounting Standards, including Financial Reporllng Standard 102 The Financial Reporting Standard applicable in the UK 8nd Rapublic of lTrland (United Kingdom Generally Accepled Accounting Practice). In our opinion the financial statamants: glve 8 twe and fair view of the state of the Charitys affairs as at 31 March 2024 and of its incoming resources and application of resources for the year then ended: have been properly prepared in accordance with United Kingdom Generally Accept8d Accountlng Practice,. and have been prepared In accordance the Charities Act 2011. 8asls of oplnlon We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS (UKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilille8 for the audit of the fln8ncial staternents section of our report. W8 are independent of the charily in accordan with the ethical requirements that are relevant to our audit of the financial statements in the UK, includlng th6 FRC'S Ethical Standard. ané we have fUilled our other ethical r8sponsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinlon. Conclu81on8 relatlng to golng concern In auditing the financial slatem8nts. we have concluded that the trustee's use of the going concem basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfomied, we have not identified any material uncertainties relating to events or conditions Ihat. individually or collectively. may cast signrficanl doubt on the Gharity'5 ability to continue as a going concern for a period ofat least hvelve months from vthen the financial statements are authoris8d for issue. Our responsibilllies and the responsibilities of the Trustee with respect to going concern are described in the relevant sections of this r8port. othor inforrnation The oth8r InfOatIOn comprises the infomiation included in the annual pOrt, other than the financial statements and our auditor's report theOn. The Trustee is responsible for the other information. Pag8 9of 17
ROYAL MASONIC HOSPITAL CHARITY REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEE OF THE ROYAL MASONIC HOSPITAL CHARITY Our opinion on the financial statements does not cover th8 Other information and we do not express any form of assurance Conclusion thereon. Our responsibility is lo read the other information and. in doing so. consider whether the other information is materially inconsislent with the financial statements or our kn¢)wledge obtained in the audit or otheTwse appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there Is a mat8rial misslat8ment in the financial statements themselves. If, based on the work we have performed. we conclude that there is a material misstalemenl of this other information, we are required to report that fad. We have nothing to report in this regard. Matt•r8 on which w• ar• r•quir•d to report by oxc•ptlon We have nothlng lo port In respect of the following matters in relation to which the Charities (Accounts and Reports) Regulats'ons 2008 r8quir8 us lo r6POrt to you if, in our opinion.. the infomiation given in the financial statements is inconsistent in any material respect with the Trustee's report., or sufficient accountlng records hav8 not been k8pt.' or the financial statements are not in agreement wilh the accounting records,. or we have not received all the infomiation and explanalion5 we require for our audit. Ro8pon8lbllltlo8 of Trust•• As explaine(i more fully in the Trustee's Responsibilities Statement set out on page 8, the Truste8 is sponsible for Ihe preparation of the financial st818m8nls and for belng satisfied th8t they give a tru8 and fair view, and for such intemal control as the trustee delemiines is necessary lo enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, th8 Truste8 is responsible for assessing the Charitvs ability to continue as a going Concern, discloslng, as applicable, matt8rs related to going concem and using the going concern besls of a¢¢ountlng unless the Trustee either intends to liquidate the company or to cease operations. or has no realistic alternative but to do so. Auditorf8 ro8pon81bllltle8 for tho audlt of tho flnanclal statemants We have been appointed as auditor under section 144 of the Charities Act 20118nd report in accordance with the AGt and relevant regulations made or having effect thereunder. Our oblecilves are to obtaln reasonable assurance about whether the financlal statements as a whole are free from material misstatement, whether due to fraud or error. and to issue an audito¢s report that includes our opinion. Reason8ble assuranc8 is a high 18V81 of assurance. but is not a guarantee that an audit conducted In accordance with ISAS (UK) will always detect a material misstatement when it exlsts. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably ba expected to influence Ihe economic decisions of users taken on the basis of these financial statements. Page 10of 17
ROYAL MASONIC HOSPITAL CHARITY REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEE OF THE ROYAL MASONIC HOSPITAL CHARITY Irregularili8s, including fraud, are instances of non-complian with laws and regulations. We design procedures in line with our responsibilities, outlined above, to d8tecl material misstatements in respect of irregularilies, including fraud. The extent to which our procedures are Gapable of detecting irregularities. including fraud is detailed below- Th8 Charlty is required to comply wth charity law and, based on our knowledge of tts activitles, we identified that the legal requiremenl lo accurately account for any restricted funds was of key signrficance. We gained an understanding of how the charity complled with its legal and regulatory framework. including the requirement lo properly account for any restricted funds, through discusslons vAth management and a review of the documented policies. procedures and controls. The audil team, which is experienced in the audit of charilies, considered the charity's susceptibility to material misstalement and how fraud may occur. Our considerations included the risk of management overrlde. Our approach was to check that all restricted incom8 was propedy identified and separately account8d for and to ensure that only valid and appropriate expenditure was charged to restricted funds. This included r8vi8wing joumal adjustments and unusual transaction5. A further description of our responsibilities for the audit of the financial slatements is located on th8 Financial Reporting Council's website at; www.frc.or auditorsres onsibilities. Thls description fomis part of our auditor's report. U•• of tho audlt roport This report 18 made Solely to the Charily's trustee, as a body, In aCrdanCe with Part 4 of th8 Char4tles (Accounts and Reports) Regulations 2008. Our audit work has been undertak8n, so that we might state to the Charity's trustee those matters we are required to state to them in an auditor's report and for no other purpose, To the fullest extent pennitted by law, we do not accept or assume responsiblllty to anyone other than the Charity and the Charlty's trustee as a body, for our audit work, for this report or for the opinions we hav8 fomied. Gw- LLP Knox Cropper LLP Statutory Auditor 65 Leadenhall Street London EC3A 2AD i? Jh ?u)¥ Knox Cropper LLP is 81igible for appointment as auditor of the charity by vlrtua of Its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. Page11of17
ROYAL MASONIC HOSPITAL CHARITY STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 MARCH 2024 Note 2024 £'ooo 2023 £'ooo INCOME LegaGi8S 49 Total Incom• 49 109 EXPENDITURE Charltablo actlvltlcs (40) 1108) T¢Jtal gxpondlture 40 108 NET MOVEMENT IN FUNDS Total funds brought forward Total fund8 earrled loard 12 All income and expenditure derive from continuing actiwties The notes on pages 15 to 17 fonn part of these financial statements Page 12of17
ROYAL MASONIC HOSPITAL CHARITY BALANCE SHEET as at 31 March 2024 Not8 March 2024 £'ooo March 2023 £'ooo CURRENT ASSETS Debtors Cash at bank ar)d in hand Total not assets 12 CHARITABLE FUNDS Restrlctod fund8 General reserves 12 Total charltabl• funds 12 The financial statements were approved and authorised for issu8 by the Twstee Board on 12th September 2024 and signed on their behalf by.. Je g.TD Clive Emers9n" President 8nd Chairman Treasurer The notes on pages 15 to 17 form part of these financial statements Page 13of 17
ROYAL MASONIC HOSPITAL CHARITY STATEMENT OF CASH FLOWS YEAR ENDED 31 MARCH 2024 2024 £'ooo 2023 £'ooo Operating Activili•$ Nèt cash provldod byl(u8od In) Operating Activiti Change in cash and cash oqulvalent8 in tho raportlng porlod Cash and cash equival8nls at tha b8ginning of the reporting p&riod Cash and cash oqulvalent8 at tho and of tho r•porting pariod Not•8 on the cash flow stat•m•nt Reconclllatlon ol not Incom•l(expondlturo) to not cash flow from operatlng actlvltle8 Net movement in funds as per the Statement of Financlal Actiwties Adjustments for. (Increase) In debtors Nèt cash provld•d byl(u8•d In) Oparatlng Activit1•8 (6) (1) Analysls of cash and cash equlvalents Cash at bank and in hand Totsl cash and cash oqulvalonts Page 14of 17
ROYAL MASONIC HOSPITAL CHARITY NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES (a) Statement of compliance The financial statements of Royal Masonic Hospital Charity (the °Charl) have been prepared in accordance with applicable UK accounting standards. including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland" ('FRS 102.). Additionally, they comply with the Statement of Recommended Practice "Accounting and Reporting by Chariknes" (FRS 102 second edition) published in 2019 {the'SORP") in all material respects. The Charity meets the definition of a public benefit entity under FRS 102. Ib) Ba818 of pr•paratlon The financial statements have been prepared on a going concern basis under th8 historical cost convenlion on a basis consistent with previous years. The functional currèncy of the Charity is consid8r8d to b8 Pounds Slerling because th81 is the currency of the primary economic environment In which the Charfty operates. (c) Golng concern The Trustee has assessed whether the use of the going concem assumption is appropriate in preparing these financial stat8m8nts. The Trustee has made this assessment In respect to a p8riod of one year from the date of approval of these financial statements. The Trustee hes concluded ihal there are no material uncertainties r81at8d to 8V8nts or conditions that may cast significant doubt on the ability of th8 Charity to continue es a going concern. The trustees are of the opinion that th8 charity will have sufficient resources to meet its liabilities as they fall due. Id) Incomlng resourcos Revenue is recognised when the significant risks and rewards of ownership have been transferred, the amount of revenue can be measured reliably, il is probabla that futur8 8conomi¢ benefits will flow to the Charity and when the specific critèria relating to each of the Charity's revenue channels have been met, as described below.. Monetary donations are brought into account when received. Legacies are recognlsed where there has been a grant of probate, the executors have idenlified that there are sufficient assets in the estate after settlement of liabilities to pay the legacy and any conditions attached to the legacy are éither in control of the Charity or have been met. Legaci8s subject to the interest of a lrfe tenant are not recognised during th8 lifetim8 of the life tenant. Page15of17
ROYAL MASONIC HOSPITAL CHARITY NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 (e) Rosourcos oxpended All expenditur8 is accounted for on an accruals basis. Expenditure entirely relates to the donation of it5 income to the MSF. All support 8nd govemance costs associated wth the operation of its charitable activities are accrued by the MCF. (f) Employoe benafits All staff are employed by the ultimate parent charity, The Masonic Charitable Foundation. No charge is made to the Charity in respecl of staff providing servlces to th8 Charity. No remuneration is paid to trustees and no exp8ns8s reimbursed. (g) Fund accountlng Unrestricted funds May be utilised for any purpose in accordance viith the charitable objectives of the Charity. (h) Taxatlon The Ch8ri1y is an exempl Charity within th8 m8aning of sch8dule 3 of the Charities Act 2011 and it is consldered to pass the test set out in paragraph 1, schedule 6 of the Finance Act 2010, and therefore it meets th8 definition of a ch8rity for U.K. Corporatlon Tax purposes. The Charity is unable to recover Valued Added Tax (VAT) incurred on expenditure. The amount of VAT that cannot be recovered is Included wlthin the underlying cost to which it relates. Page 16 of 17
ROYAL MASONIC HOSPITAL CHARITY NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 CHARITABLE ACTIVITIES 2024 £'ooo 2023 £'ooo Care and welfare support 40 108 40 108 3. STAFF COSTS No remuneration or expenses w8r8 paid to the Trustee during the current or prior year periods. No costs of staff support wer8 recharged by Ihe MCF to the Charity during the Gurrent or prior years. DEBTORS March 2024 £'ooo March 2023 £'ooo other debtors Amounts owed by group undertakings RELATED PARTY TRANSACTIONS During the period grants totalling £40,00012023.' £108,000) were made by the Charity to the MSF. The majorlty of Ihls related to the transfer of legacies received by the Charity. The MCF has bome all the administrative costs of supportlng the Charlty as well as its fellow subsidiary Charities. ULTIMATE CONTROLLING PARTY The ultimate Controlling party is the Masonic Charitable Foundation. Registered Charity No. 1164703, Company Number 09751836. Consolidated accounts for the MCF, which inGlude the accounts of the Charity, can be obtained from the registered office of the Charity. Page 17of 17