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|ROYAL|MASONIC|BENEVOLENT INSTITUTION||
|---|---|---|---|
|Contents|||Page|
|Trustee's|Annual
Report|||
|Statement|ofTrustee's|Responsibilities||
|Auditor's|Report||12|
|Statement|of Financial|Activities|15|
|Balance Sheet|||16|
|Statement|ofCash Flows||17|
|Notes to the Financial||Statements|18|
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|or the MCF. The trus|tee board and the main committees
meet as follows:|||||
|---|---|---|---|---|---|
|Board/Committee|Purpose||||Meetings per|
||||||ear|
|Trustee Board|Main decision-making
body with ultimate
responsibility|for the||||
||Charit|||||
|Audit and Risk|Identification
and miti
ation of risk
oversi
ht ofexternal|audit||||
|Charity Grants|Consideration
ofapplications
for grants from organisations|||||
||reco nised
b
the Charit
Commission|||||
|Finance|Ensuring
adequate
procedures
are in place to manage|all||||
||as ectsoffinancial
lannin
controllin
andre
ortin .|||||
|Fundraising|Supporting
the masonic community's
fund raising activities|||to||
||su
ort the Charit|||||
|Investments|Maintaining
investment
strategies to meet the requirements|||of||
||the Charit
a
ointment
and monitorin
offund mana|ers||||
|Masonic Support|Consideration
ofapplications
from individuals
connected||with|||
||the masonic communit
for financial
relief|||||
|Property (RMTGB
onl|Development
and execution ofstrategies
to optimise the
from the Charit 's
ro e
orffolio||returns|||
|Remuneration|Determination
ofexecutive and staff
a
&benefits|||||
|Strategy|Development
and implementation
ofstrategies
to support||the|||
||Charity's
objectives.
In addition,
the trustees
hold an annual|||||
||strata
ic'awa
da '.|||||
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||||||MCF CAIF|RLAM|RLAM||RLAM|RLAM|RLAM|RLAM|RLAM||CCLA|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|||||||Short|Term||Cash|Plus||Enhanced|||Property|
|Fund at 31"March 2021|||||E16.33 M|E0.38|M||E1.27|M||E0.29|M||E0.63 M|
|Investment||approach|||Sieady|Capital|||Capital|||Capital|||Income &|
||||||Growth|Protection|||Protection|||Protection|||long-term|
||||||Multi-Asset||||||||||Capital|
||||||||||||||||Growth|
|Benchmark|||||Composite|SONIA|||SONIA|||SONIA|||MSCI/AREF|
||||||||||||||||UK other|
||||||||||||||||balanced|
||||||||||||||||ro ert|
|Peer Group|||||ARC|None|||None|||None|||ARC|
||||||Charity||||||||||Charity|
||||||GBP||||||||||GBP|
||||||Steady||||||||||Steady|
||||||Growth||||||||||Growth|
|Return|for the||ear||2790%||0.17%|||1|38%||2.63%||300%|
|Benchmark||return for||ear|26.00%||0 Q6'/|||P|P6%||Q 06'/||5PP%|
|Peer|rou|return for||ear|24 50%|||N/A|||N/A|||N/A|N/A|
|3 ear|return||||24 70%||0.57%|||0|96%||1 50%||12.50%|
|3 ear|benchmark||||20.80%||P 41%|||P|41%||0.41%||41P|
|3 ear|eer||rou||19 10o/|||N/A|||N/A|||N/A|N/A|
|Worldwide
stock-markets||||have|recovered
strongly since|||the|collapse||in March 2020,|||where the CAIF fell||
|to a low|point|ofE88.36||per unit on 23"March. As at 31"March 2021, the||||||||CAIF was valued
at E117.58||||
|per unit.||||||||||||||||
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|The principal|risks identified|risks identified|risks identified|risks identified|risks identified|and agreed actions to mitigate|are|shown
in the following
table:||
|---|---|---|---|---|---|---|---|---|---|
||Risk|||||Consequence||Miti
ation||
|Significant|unexpected|||||Reputational
damage,
loss of||Strong financial procedures,||
|financial loss||from||||confidence
with key stakeholders||particularly
budgetary
planning
and||
|operations||||||and impact upon continuing||control. Oversight
from the Finance||
|||||||financial
sustainabilit||Committee.||
|Inadequate|liquidity|||to||Poor service to beneficiaries|and|Cash flow forecasting
and liquidity||
|meet financial||||||reputational
damage. Withdrawal||planning
within the Investment||
|commitments||||||ofke
services from su
liers||Strate||
|Significant|long-term||||loss|Impacts financial
sustainability||Appointment
ofAsset Risk||
|in the value|of the|||||and reputational
damage
with||Consultants
as expert investment||
|investment|portfolio|||||donors||advisors,
providing
monthly||
|||||||||performance
reporting
and analysis.||
|||||||||Oversight
from investment
and||
|||||||||ro ert
committees.||
|Grants made||outside|||the|Reputational
damage,
loss of||Strong procedures
and controls for||
|Charity's
Objects and||||||confidence
with key stakeholders||processing
grants. Oversight
from||
|operating
guidelines||||||and potential
trustee
liability||Masonic Support and Charity Grants||
|||||||||committees||
|Cyberattack|on||IT systems|||All key operations
are||United Grand Lodge of England||
|||||||compromised||("UGLE")and IT network
providers||
|||||||||have strong security procedures|in|
|||||||||place covering access, protection,||
|||||||||backups and disaster recovery||
|||||||||facilities. Mandatory
cybersecurity||
|||||||||trainin
in
lace for all staff||
|Data protection|||breach|||Reputational
damage
and||Data protection
policy, ITsecurity||
|||||||si nificant financial
enalties||and HR
oliciesin
lace||
|Fraud||||||Financial loss, reputational||Financial procedures,
segregation|of|
|||||||damage, adverse
impact upon||duties,
authority
limits, IT security,||
|||||||staff||increased
awareness
amon
st staff||
|Unavailability||of|office|||Operations
compromised||UGLE Business Continuity
Plan||
|accommodation||||||||||
|Loss of paper||records||||Breach of legal obligations,||Reduced reliance on paper records||
|from fire/flooding||||||adverse
impact upon operations,||with increased
use of IT.||
|||||||otential financial
enalties||||
|Lack of compliance||||with||Breach of legal obligations,||HR procedures
and staff handbook.||
|employment||legislation||||potential
financial penalties,||Induction
processes for new staff.||
|||||||breakdown
of staff morale and||Ongoing
management
training
and||
|||||||adverse
impact upon service||Personal
Development
Review||
|||||||rovision||||
|Undue reliance|||on key|||Operational
breakdown,
adverse||HR procedures:
organisational
and||
|persons||||||impact upon staff morale,
poor||succession
planning.||
|||||||service to beneficiaries
and||Comprehensive
documentation
of||
|||||||otential
re utational
dama e||rocedures
and controls||
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|||||Note|2021|2020|
|---|---|---|---|---|---|---|
||||||8'000|8'000|
|INCOME|||||||
|Donations
and legacies|||||1,953|2,552|
|Investment
income|||||338|307|
|Total income|||||2,291|2,859|
|Cost ofgenerating|funds||||(106)|(176)|
|Investment
management||costs|||(123)|(112)|
|Cost ofgenerating|funds||||229|288|
|Charitable
activities|||||(126)|(105)|
|Total expenditure|||||355|393|
|Net gains/(losses)
on|investments||||2,985|(1,053)|
|NET MOVEMENT
IN|FUNDS||||4,921|1 413|
|Total funds brought forward|||||14,917|13,504|
|Total funds carried|forward||||19,838|14,917|
|All income and expenditure||derive from continuing|activities||||
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|BALANCE SHEET as at 31 March 2021|Note|March 2021|March 2020|
|---|---|---|---|
|||f.'000|E'000|
|FIXEDASSETS||||
|Investments||16,955|12.332|
|||16,955|12,332|
|CURRENT ASSETS||||
|Debtors||887|559|
|Investments||1,945|1,920|
|Cash at bank and in hand||54|243|
|||2,886|2,722|
|CURRENT LIABILITIES||||
|Creditors falling due within one year||(3)|(137)|
|NET CURRENT ASSETS||2,883|2585|
|Total net assets||19,838|14917|
|CHARITABLE FUNDS||||
|Unrestricted
funds||||
|General reserves|7, 8|18,935|13,934|
|Designated
reserves|7, 8|903|983|
|Total charitable funds||19,838|14,917|
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|||||||||
|---|---|---|---|---|---|---|---|
||STATEMENT OF CASH FLOW|S|||YEAR|ENDED 31 MARCH 2021||
|||||||2021|2020|
|||||||6'000|6'000|
||Operating
Activities|||||||
||Net cash provided
by/(used
in) Operating||Activities||A|874|1 730|
||Cash flows from investing
activities|||||||
||Dividends,
interest and rents from investments|||||337|307|
||Purchase
ofinvestments|||||(1,400)|(2,200)|
||Net cash provided
by/(used
in) Investing||Activities|||1 063|1 893|
||Change
in cash and cash equivalents|in the reporting||||||
||period|||||(189)|(163)|
||Cash and cash equivalents
at the beginning||ofthe|||||
||reporting
period|||||243|406|
||Cash and cash equivalents
at the end|of|the reporting|||||
||period||||B|54|243|
||Notes on the cash flow statement|||||||
|A|Reconciliation
of net income/(expenditure)|||to net||||
||cash flow from operating
activities|||||||
||Net movement
in funds as per the Statement|||of||||
||Financial
Activities|||||4,921|1,413|
||Adjustments
for:|||||||
||Dividends,
interest and rents from investments|||||(337)|(307)|
||Other movements
in investments|||||(3,248)|814|
||(Increase)/decrease
in debtors|||||(328)|(206)|
||Increase/(decrease)
in creditors|||||(134)|16|
||Net cash provided
by/(used
in) Operating|||Activities||874|1,730|
|B|Analysis ofcash and cash equivalents|||||||
||Cash held by investment
managers|||||0|0|
||Cash at bank and
in hand|||||54|243|
||Total cash and cash equivalents|||||54|243|
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|YE|AR ENDED 31|MARCH 2021|MARCH 2021|MARCH 2021|||
|---|---|---|---|---|---|---|
|2.|DONATIONS|AND LEGACIES|||2021|2020|
||||||6'000|6'000|
||Festivals||||737|1,669|
||Other donations||||31|54|
||Legacies||||1,185|829|
||||||1,953|2 552|
|3.|CHARITABLE|ACTIVITIES|||2021|2020|
||||||F'000|K'000|
||Transferred
Beneficiaries||Fund||126|112|
||Support Costs||||0|(7)|
||||||126|105|
|4.|INVESTMENTS||||March 2021|March 2020|
||||||f'000|6.'000|
||Fixed Asset Investments:||||||
||Managed
Funds||||||
||MCF CAIF||||16,325|12,332|
||COLA Property
Fund||||630|0|
||||||16,955|12,332|
||Current Asset|Investments|||||
||- RLAM Cash|Reserve funds|||1,945|1,920|
||-Cash and cash equivalents||||0|0|
||||||1,945|1,920|
||||||18,900|14,252|
||MOVEMENTS|IN INVESTMENTS|||||
||Listed||||||
||Balance at 31|March 2020|||14,252|12,866|
||Additions||||1,400|2,200|
||Investment
income reinvested||||337|307|
||Management|fees charged||to the fund|(74)|(68)|
||Gains/(losses)||||2,985|(1,053)|
||Changes
in cash balances|||held|0|0|
||Balance at 31|March 2021|||18,900|14252|
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|YEA|R ENDED 31 MARCH 202|R ENDED 31 MARCH 202|R ENDED 31 MARCH 202|R ENDED 31 MARCH 202|R ENDED 31 MARCH 202|R ENDED 31 MARCH 202|1||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|4.|INVESTMENTS (Continued)|||||||||March|2021|March 2020|
||||||||||||6'000|E'000|
||RECONCILIATION|||TO||SOFA|||||||
||Gains/(losses)||on|listed||investments||||2,985||(1,053)|
|||||||||||2985||1 053|
|5.|DEBTORS|||||||||March|2021|March 2020|
||||||||||||E'000|E'000|
||Amounts
owed||by|group undertakings|||||||373|225|
||Prepayments|and||accrued income|||||||1|1|
||Other debtors||||||||||513|333|
||||||||||||887|559|
|6.|CREDITORS|||||||||March 2021||March 2020|
||||||||||||6'000|E'000|
||Falling due within one year||||||||||||
||Grants payable|||||||||||4|
||Accruals and|deferred|||income|||||||0|
||Amounts
owed||to|group||undertakings||||||133|
|||||||||||||137|
|7.|MOVEMENT||IN|FUNDS|||Balance at|Income|Expenditure|Gains/|Transfers|Balance at|
||||||||1 April|||(losses)||31 March|
||||||||2020|||||2021|
||||||||f'000|E'000|F'000|E'000|E'000|f'000|
||Unrestricted||funds||||||||||
||General reserves||||||13,934|2,291|(355)|2,985|80|18,935|
||Designated|reserves|||||983|0|0|0|(80)|903|
||Total funds||||||14,917|2,291|355|2,985|0|19,838|
||Prior year||||||Balance at|Income|Expenditure|Gains/|Transfers|Balance at|
||||||||1 April|||(losses)||31 March|
||||||||2019|||||2020|
||||||||E"000|E'000|F'000|E'000|E'000|E'000|
||Unrestricted||funds||||||||||
||General reserves||||||11,694|2,859|(393)|(1,053)|827|13,934|
||Designated|reserves|||||1,810|0|0|0|(827)|983|
||Total funds||||||13,504|2,859|393|1,053|0|14,917|
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|R ENDED 31 MARCH 2021|R ENDED 31 MARCH 2021|R ENDED 31 MARCH 2021|||||
|---|---|---|---|---|---|---|
|ASSETS AND LIABILITIES|||Investments|Current|Current|Fund|
||||f'000|Assets
f'000|Liabilities
f'000|Total
f'000|
|Unrestricted||funds|||||
|General reserves
Designated
reserves|||16,955
0|1,983
903|(3)
0|18,935
903|
|Total funds|||16,955|2886|3|19,838|
|Prior year|||Investments|Current|Current|Fund|
|||||Assets|Liabilities|Total|
||||f'000|f'000|f'000|f'000|
|Unrestricted||funds|||||
|General reserves
Designated
reserves|||12,332
0|'1,739
983|(137)
0|13,934
983|
|Total funds|||12332|C ILK||1491f|
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