# **ROYAL MASONIC BENEVOLENT INSTITUTION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022** **Charity Number: 207360** ## **ROYAL MASONIC BENEVOLENT INSTITUTION** |Contents|Page| |---|---| |Trustee’s Annual Report|3| |Statement of Trustee’s Responsibilities|11| |Auditor’s Report|12| |Statement of Financial Activities|15| |Balance Sheet|16| |Statement of Cash Flows|17| |Notes to the Financial Statements|18| Page 2 of 22 ## **ROYAL MASONIC BENEVOLENT INSTITUTION** ## **TRUSTEE’S ANNUAL REPORT** The trustee is pleased to submit its report for the year ended 31[st] March 2022. ## **Reference and Administrative Information** ## **Name and Registered Office** The name of the charity is the Royal Masonic Benevolent Institution (the “Charity”) and its principal office is located at 60 Great Queen Street, London, WC2B 5AZ. ## **Trustees** The trustee who served during the whole of the year was: - The Masonic Charitable Foundation (“MCF”) (Corporate Trustee, Registered Charity No. 1164703, Company Number 09751836) The trustees of the MCF who served during the year were: - John Boyington, CBE - Sinead Brophy - Charles A.G. Cunnington - Timothy D. Dallas-Chapman (resigned 9[th] December 2021) - Simon D’O. Duckworth, OBE, DL - Clive Emerson - Dr Simon Fellerman - Alan P. Graham, MBE - Antony D.G. Harvey - Christopher Head - Michael R. Heenan (Treasurer) - Richard M. Hone, QC (President) - James H. Newman, OBE (resigned 28[th] April 2021) - Stephen Robinson - Howard Ian Sabin (resigned 9[th] December 2021) - David Southern (appointed 10[th] June 2021) - Nigel J. Vaughan - David C. Watson (resigned 9[th] December 2021) - Andrew G. Wauchope - Sir Paul Williams, OBE, KStJ, DL (Deputy President and Chairman) - Howard G. Wilson James H. Newman resigned as Chairman of the MCF on 31[st] March 2021 and Trustee of the MCF on 28[th] April 2021, and Sir Paul Williams was appointed Chairman on 1[st] April 2021. Page 3 of 22 ## **ROYAL MASONIC BENEVOLENT INSTITUTION** ## **TRUSTEE’S ANNUAL REPORT** ## **Executive** The Executive during the year to 31[st] March 2022 were: - Les Hutchinson, Chief Executive - Charles Angus, Group Finance Director - Annette Campbell, Company Secretary (resigned 5[th] February 2022) - - Brenda Nurse, Company Secretary (appointed 1[st] March 2022) ## **Auditor** Knox Cropper LLP, Chartered Accountants, 65 Leadenhall Street, London, EC3A 2AD ## **Bankers** Barclays Bank Plc, Level 28, 1 Churchill Place, Canary Wharf, London, E14 5HP ## **Investment Advisors** Asset Risk Consultants Limited, 7 New Street, St. Peter Port, Guernsey, GY1 2PF ## **Investment Managers** Thesis Unit Trust Management Ltd, Exchange Building, St John's Street, Chichester, West Sussex PO19 1UP CCLA, Senator House, 85 Queen Victoria Street, London, EC4V 4ET Royal London Asset Management Ltd., 55 Gracechurch Street, London, EC3V 0UF ## **Solicitors** Stone King LLP, Boundary House, 91 Charterhouse Street, London, EC1M 6HR Page 4 of 22 ## **ROYAL MASONIC BENEVOLENT INSTITUTION** ## **TRUSTEE’S ANNUAL REPORT** ## **Structure, Governance and Management** ## **Organisation** The Charity is governed under the terms of a Charity Commission Scheme dated 1[st] November 2017 when it was transferred from the RMBICC to the MCF. On the same date the Transferred Beneficiaries Fund was transferred from The Grand Charity to the Charity. As the MCF is the sole trustee of the Charity, the MCF exercises control over the Charity, and will consolidate the Charity’s results in its group accounts. Details of the processes for the appointment, induction and training of the MCF’s trustees are given in the annual report and accounts of that company. ## **Governance and Management** All governance and management capabilities are provided by the MCF and details of the relevant committees and processes are provided in the annual report and accounts of that company. Trustees and committees of the MCF address the specific needs of the Charity as part of their roles and responsibilities for the MCF. The trustee board and the main committees meet as follows: |**Board/Committee**|**Purpose**|**Meetings per**
**year **| |---|---|---| |Trustee Board|Main decision-making body with ultimate responsibility for the
Charity|4| |Audit and Risk|Identification and mitigation of risk, oversight of external audit|2| |Charity Grants|Consideration of applications for grants from organisations
recognised by the Charity Commission|4| |Finance|Ensuring adequate procedures are in place to manage all
aspects of financial planning, controlling and reporting.|4| |Fundraising|Supporting the masonic community’s fund raising activities to
support the Charity|4| |Investments|Maintaining investment strategies to meet the requirements of
the Charity, appointment and monitoring of fund managers|4| |Masonic Support|Consideration of applications from individuals connected with
the masonic community for financial relief|4| |Property (RMTGB
only)|Development and execution of strategies to optimise the returns
from the Charity’s property portfolio|4| |Remuneration|Determination of executive and staff pay & benefits|2| |Strategy|Development and implementation of strategies to support the
Charity’s objectives. In addition, the trustees hold an annual
strategic‘away day’.|4| The Charity does not employ any staff, with services being provided by staff employed by the MCF. Page 5 of 22 ## **ROYAL MASONIC BENEVOLENT INSTITUTION** ## **TRUSTEE’S ANNUAL REPORT** ## **Objectives and Activities** ## **The objects of the Charity** The objects of the Charity shall be to relieve the need, suffering and distress of the beneficiaries and for that purpose: - a) To support beneficiaries who are in need of financial assistance from the Charity. - b) To provide beneficiaries with accommodation in residential care facilities or sheltered accommodation, and make available such care as may be required. - c) To provide other such benefits to beneficiaries as the trustee shall from time to time think fit. ## **The main activities** The main activity of the Charity for the year was the collection of donations and legacies in support of the RMBICC. All donations and legacies received are controlled by the MCF, which provides an annual support grant to the RMBICC. The purpose of the Transferred Beneficiaries Fund is the relief of poverty for named beneficiaries of the Royal Masonic Benevolent Institution. This pool has been closed to new entrants for many years. The fund, amounting to £9.77 M, was transferred from The Grand Charity on 1[st] November 2017. Following actuarial calculations of the remaining liability, £0.71 M of the fund has been designated for this purpose and the remainder transferred to the general fund of the Charity. ## **Public benefit** The trustee has referred to the Charity Commission’s general guidance on public benefit when reviewing its aims and objectives and has ensured that its grant-making policies and activities comply with the requirements. ## **Achievements and Performance** During the year, 100 grants at a value of £98k (net of reversals) were paid to 100 recipients. Page 6 of 22 ## **ROYAL MASONIC BENEVOLENT INSTITUTION** ## **TRUSTEE’S ANNUAL REPORT** ## **Financial Review** ## **Review of the Year** Income for the year amounted to £3.73 M (2021: £2.29 M). Festival income of £0.56 M was 25% lower than prior year as the last remaining festival attached to the Charity comes to its conclusion. The Charity is most grateful for the sterling efforts made by organising committees and generous donations of time and money by Brethren. Legacies are by nature variable, and income from this source for the current year of £2.73 M was 130% higher than the prior year. Total expenditure of £0.39 M was 9% higher than prior year. Investment gains of £1.64 M were made (2021: £2.99 M after the very strong post Covid-19 recovery). The net surplus for the year of £4.98 M (2021: £4.92 M) was transferred to reserves. ## **Reserves Policy** The designated reserve will fund the ongoing grant commitments to the named beneficiaries of the Charity until their demise. Any excess funds following the death of the last beneficiary will then be transferred to the general fund. The general fund will be used in the future to contribute to the annual support grant provided by the MCF to the RMBICC. ## **Investment Policy and Performance** The MCF global investment strategy seeks to protect the capital value of investments that are required to fund operations for a three-year time horizon (the “Cash Reserve”) and to invest all remaining funds for long term growth, on a total return basis, with an overall objective of making a return of RPI plus 3% net of all expenses. The Cash Reserve is provided by Royal London Asset Management (“RLAM”) and utilises three of their funds, which provide a mix of instruments, including cash instruments, Treasury Bills, covered (secured) bonds, corporate bonds, Supranationals and mortgage-backed securities. The performance objectives of the three funds are: - Short Term Money Market Fund: SONIA - Cash Plus Fund: SONIA plus 0.50% gross of fees - Enhanced Cash Plus Fund: SONIA plus 1.00% gross of fees The MCF sponsored the launch of the Masonic Charitable Foundation Investment Fund CAIF, which took place on 1[st] October 2018. This is a unit trust with a highly efficient tax wrapper in which the MCF and all its subsidiary charities own their shares in the form of units. Units will be sold as required in order to top up the Cash Reserve on a quarterly basis. The investment strategy is directed for “Steady Growth”, which is a medium-high risk strategy. Risk is managed through diversification, with the funds split between four different fund managers operating on multi asset mandates but utilising differing investment management styles. The overall fund manager is Thesis Unit Trust Management Limited and the custodian in Northern Trust. The asset allocation for the CAIF was amended on 1[st] April 2019 by the investment committee following advice from Asset Risk Consultants. The strategic and actual asset allocations as at 31[st] March 2021 are shown in the table overleaf: Page 7 of 22 ## **ROYAL MASONIC BENEVOLENT INSTITUTION** ## **TRUSTEE’S ANNUAL REPORT** ## **Investment Policy and Performance (Continued)** |**Asset Class**|**Strategic**
**Allocation**|**Benchmark**|**Actual 31st**
**March**
**2022**| |---|---|---|---| |Cash|0.00%|SONIA|3.20%| |FixedIncome|7.50%|FTSEUK World Gov. BondIndexGBP|4.40%| |International Equity|28.75%|MSCI World ex UK NR GBP|56.40%| |Int’nl Equity GBP hedged|12.00%|MSCI World ex UK Hedged NR GBP|3.40%| |U.K. Equity|18.00%|MSCI UK Equity NR GBP|18.50%| |Emerging Market Equity|12.50%|MSCI Emerging Markets Equity NR GBP|2.80%| |Global EquityHedge|13.75%|HFRXGlobal EquityHedge GBP|0.00%| |Alternative Investments|3.75%|HFRX Global Hedge Fund GBP|7.80%| |Property|3.75%|IAUK DirectPropertyTR|3.50%| ||100.00%||100.0%| In order to balance property exposure across all the MCF subsidiaries, the Charity also made a direct investment into the CCLA property fund. Performance under the new arrangements is shown in the following table: ||**MCF CAIF**|**RLAM**
**Short Term**|**RLAM**
**Cash Plus**|**RLAM**
**Enhanced**|**CCLA**| |---|---|---|---|---|---| |Fund at 31stMarch 2022|£21.97 M|£0.18 M|£0.57 M|£0.19 M|£0.76 M| |Investment approach|Steady
Growth Multi-
Asset|Capital
Protection|Capital
Protection|Capital
Protection|Income &
long-term
Capital
Growth| |Benchmark|Composite|SONIA|SONIA|SONIA|MSCI/AREF
UK other
balanced
property| |Peer Group|ARC Charity
GBP Steady
Growth|None|None|None|ARC Charity
GBP Steady
Growth| |Return for the year|10.30%|0.13%|(0.09)%|(0.65)%|19.30%| |Benchmark return for year|9.80%|0.14%|0.14%|0.14%|9.70%| |Peergroupreturn foryear|7.10%|N/A|N/A|N/A|7.10%| |3 year return|33.00%|0.38%|0.64%|0.80%|27.00%| |3 yearbenchmark|26.90%|0.28%|0.28%|0.28%|2.50%| |3 year peer group|22.40%|N/A|N/A|N/A|22.40%| The CAIF has continued to perform strongly during the year, hitting a peak of just over £133.00 per unit at 31[st] December. It fell back in the final quarter due to geopolitical and inflationary concerns, but recovered strongly in the latter part of March. As at 31[st] March 2022, the CAIF was valued at £129.73 per unit. Page 8 of 22 ## **ROYAL MASONIC BENEVOLENT INSTITUTION** ## **TRUSTEE’S ANNUAL REPORT** ## **Principal Risks and Mitigation** The principal risks identified and agreed actions to mitigate are shown in the following table: |**Risk **|**Consequence**|**Mitigation **| |---|---|---| |Significant unexpected
financial loss from
operations|Reputational damage, loss of
confidence with key stakeholders
and impact upon continuing
financial sustainability|Strong financial procedures,
particularly budgetary planning and
control. Oversight from the Finance
Committee.| |Inadequate liquidity to
meet financial
commitments|Poor service to beneficiaries and
reputational damage. Withdrawal
of key servicesfromsuppliers|Cash flow forecasting and liquidity
planning within the Investment
Strategy| |Significant long-term loss
in the value of the
investment portfolio|Impacts financial sustainability
and reputational damage with
donors|Appointment of Asset Risk
Consultants as expert investment
advisors, providing monthly
performance reporting and analysis.
Oversight from investment and
property committees.| |Grants made outside the
Charity’s Objects and
operating guidelines|Reputational damage, loss of
confidence with key stakeholders
and potential trustee liability|Strong procedures and controls for
processing grants. Oversight from
Masonic Support and Charity Grants
committees| |Cyberattack on IT systems|All key operations are
compromised|United Grand Lodge of England
(“UGLE”) and IT network providers
have strong security procedures in
place covering access, protection,
backups and disaster recovery
facilities. Mandatory cybersecurity
training in place for all staff| |Data protection breach|Reputational damage and
significant financial penalties|Data protection policy, IT security
and HR policies in place| |Fraud|Financial loss, reputational
damage, adverse impact upon
staff|Financial procedures, segregation of
duties, authority limits, IT security,
increased awareness amongst staff| |Unavailability of office
accommodation|Operations compromised|UGLE Business Continuity Plan| |Loss of paper records
from fire/flooding|Breach of legal obligations,
adverse impact upon operations,
potential financial penalties|Reduced reliance on paper records
with increased use of IT.| |Lack of compliance with
employment legislation|Breach of legal obligations,
potential financial penalties,
breakdown of staff morale and
adverse impact upon service
provision|HR procedures and staff handbook.
Induction processes for new staff.
Ongoing management training and
Personal Development Review| |Undue reliance on key
persons|Operational breakdown, adverse
impact upon staff morale, poor
service to beneficiaries and
potential reputationaldamage|HR procedures: organisational and
succession planning.
Comprehensive documentation of
procedures and controls| Risks are actively monitored by the Executive and the senior leadership team, and formally reviewed by the audit and risk committee at their biannual meetings. Page 9 of 22 ## **ROYAL MASONIC BENEVOLENT INSTITUTION** ## **TRUSTEE’S ANNUAL REPORT** ## **Plans for Future Periods** The Charity will continue to receive donations and legacies and pass them through to the MCF which will apply them in accordance with its charitable objectives, including support of the RMBICC. Page 10 of 22 ROYAL MASONIC BENEVOLENT INSTITUTION STATEMENT OF TRUSTEE'S RESPONSIBILITIES Statement of Responsibilltl•s The trustee is responsible for preparing the trustee's report and financial statements in accordance with applicable law and United Kingdom Accounting Standard5 {U.K. "GAAP ). The law applicable to charities in England and Wales, the Chari116s Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed require the trustee lo prepare financial slalemenls for each financial year which give a true and fair wew of the slate of affairs of the Charity and of the income and expenditure of the Charity for that year. In preparing these financial statements, the trustee is required to.. select suitable accounting policies and then apply them consistently: observe the methods and prlnciples in Accounting and Reporting by Chanlies: Statement of Recomm8nded Practice applicable to ¢harities preparing their financial slalemenls in accordance with the Financial Reporting Standard applicable in the United lfjngdom and Republic of Ireland (FRS102).' make judgements and estimates that are reasonab18 and prudent., state whether United Kingdom accounting standards have been followed, subject lo any material departures disclosed and explained in the financial slalemènts,. and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue to operate. Th8 trust8e is responsible for keeping adequate accounting records that disclose with reasonable accuracy al any time the financial position of the Charity and enable il to ensure that the financial statements comply with the Charities Act 2011. the Charity (Accounts and Report5) Regulations 2008 and the provisions of Ihe 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 irregularities. Audltor A resolution proposing that Knox Cropper LLP be reappointed as auditor will be pul to the mefflbers. Approval by Trustee This report, was approved by the trustee on 15th September 2022 and signed on thelr behalf by Slr Paul Williams, OBE, KStJ, DL Chaiman, MCF Page11 of22 ## **ROYAL MASONIC BENEVOLENT INSTITUTION** ## **REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEE OF THE ROYAL MASONIC BENEVOLENT INSTITUTION** We have audited the financial statements of the Royal Masonic Benevolent Institution (the “Charity”) for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the Charity's affairs as at 31 March 2022 and of its incoming resources and application of resources for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the Charities Act 2011. ## **Basis of opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the trustee’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustee with respect to going concern are described in the relevant sections of this report. ## **Other information** The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustee is responsible for the other information. Page 12 of 22 ## **ROYAL MASONIC BENEVOLENT INSTITUTION** ## **REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEE OF THE ROYAL MASONIC BENEVOLENT INSTITUTION** Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Matters on which we are required to report by exception** We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion: - the information given in the financial statements is inconsistent in any material respect with the trustee’s report; or - sufficient accounting records have not been kept; or - the financial statements are not in agreement with the accounting records; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of Trustee** As explained more fully in the Trustee’s Responsibilities Statement set out on page 11, the trustee is 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 trustee determines 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 trustee is 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 trustee either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so. ## **Auditor’s responsibilities for the audit of the financial statements** We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 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. Page 13 of 22 ROYAL MASONIC BENEVOLENT INSTITUTION REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS AND TRUSTEE OF THE ROYAL MASONIC BENEVOLENT INSTITUTION Irregularities. including fraud, are instances of non-compliance with laws and ￿gUlations. We design procedures in line with our res5)onsibilities. outlined above, to del8cl material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.. The Charity is required to comply with charlty law and, based on our kn¢xvledge of its activitl8s, we identified that Ihe legal requirement to accurately account for any restricted funds was of key significanc8. We gained an understanding of how th8 charity complied with ils legal and regulatory framework, including the requirement to properly account for any restricted funds. through discussions with management and a review of th8 documented policies. procedures and controls. The audit team, which is èxperienced in the audit of Charities, Considered the charity's susceptibility to material misslalemenl and how fraud may occur. Our considerations included the risk of. management override. Our approach was lo check that all restrictèd income was prop8rly Identified and separately 8ccounted for and lo ensure that only valid and appropriate expenditure was charged to r8StriGted funds. This included rewewing journal adjustm8nls and unusual transactions. A further description of our rasponsibilities for the audit of the financial slatements is located on the Financial Reporting Council's w8bsite at.. vthiw.frc.or auditorsres onsibilities. This description forms part of our auditor's report. U80 of the audlt report This report is made solely lo the Charity's trustee, as a body, in accordance with Part 4 of th8 Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken, so that we might slat8 lo the Charity's trustee those matters we are requir8d lo stale to them in an auditor's report and for no other purpose. To the fullest extent permilled by law, we do not accept or assume r8sponsibility to anyone other than the Charity and the Charity's trustee as a body, for our audit work, for this report or for the opinions we hav8 formed. Cteft￿ LLP Knox Cropper LLP Stalulory Auditor 65 Leadenhall Street London EC3A 2AD Icr Sep1&Y￿r 1017 Knox Cropper LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as audilor of a company under section 1212 of the Companies Act 2006. Page 14 of22 ## **ROYAL MASONIC BENEVOLENT INSTITUTION** ## **STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 MARCH 2022** |Note
**INCOME**
Donations and legacies
2
Investment income
**Total income**
**EXPENDITURE**
Cost of generating funds
Investment management costs
**Cost of generating funds**
**Charitable activities**
3
**Total expenditure**
Net gains/(losses) on investments
4
**NET MOVEMENT IN FUNDS**
Total funds brought forward
**Total funds carried forward**|2022
2021
£'000
£'000
3,318
1,953
412
338| |---|---| ||3,730
2,291| ||(135)
(106)
(155)
(123)| ||(290)
(229)| ||(98)
(126)| ||(388)
(355)| ||1,637
2,985| ||4,979
4,921| ||19,838
14,917| ||24,817
19,838| All income and expenditure derive from continuing activities The notes on pages 18 to 22 form part of these financial statements Page 15 of 22 ROYAL MASONIC BENEVOLENT INSTITUTION BALANCE SHEET as at 31 March 2022 Note March 2022 £'ooo March 2021 £'ooo FIXED ASSETS Investments 22,726 16.955 22.726 16,955 CURRENT ASSETS Debtors Investments Cash at bank and in hand 1.071 943 77 887 1,945 54 2,091 2.886 CURRENT LIABILITIES Creditors falling due within one year NET CURRENT ASSETS (o) (3) 2,091 2,883 Total net a88ets 24,817 19,838 CHARITABLE FUNDS Unre8trlcted funds Gener81 reserves Designated reserves 24,103 714 18,935 903 Total charltable fundg 24,817 19,838 The financial statements We￿ approved and authorised for issue by th8 Trustee Board on 15th September 2022 and signed on their behalf by. Sir Paul Williams, OBE, DL Michael Heenan Chairman Treasurer The notes on pages 18 to 22 form part of these financial statements Page 16of22 **ROYAL MASONIC BENEVOLENT INSTITUTION** ## **STATEMENT OF CASH FLOWS** ## **YEAR ENDED 31 MARCH 2022** |**Operating Activities**
**Net cash provided by/(used in) Operating**
**Activities**
A
**Cash flows from investing activities**
Dividends, interest and rents from investments
Proceeds from the sale of investments
Purchase of investments
**Net cash provided by/(used in) Investing Activities**
**Change in cash and cash equivalents in the**
**reporting period**
Cash and cash equivalents at the beginning of the
reporting period
**Cash and cash equivalents at the end of the**
**reporting period**
B
**Notes on the cash flow statement**
A
**Reconciliation of net income/(expenditure) to net**
**cash flow from operating activities**
Net movement in funds as per the Statement of
Financial Activities
Adjustments for:
Dividends, interest and rents from investments
Other movements in investments
(Increase)/decrease in debtors
Increase/(decrease) in creditors
**Net cash provided by/(used in) Operating**
**Activities**
B
**Analysis of cash and cash equivalents**
Cash held by investment managers
Cash at bank and in hand
**Total cash and cash equivalents**|2022
2021
£'000
£'000
2,436
873| |---|---| ||412
338
1,000
0
(3,825)
(1,400)| ||(2,413)
(1,062)| ||23
(189)
54
243| ||77
54| ||4,979
4,921
(412)
(338)
(1,944)
(3,248)
(184)
(328)
(3)
(134)| ||2,436
873| ||0
0
77
54| ||77
54| Page 17 of 22 ## **ROYAL MASONIC BENEVOLENT INSTITUTION** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **YEAR ENDED 31 MARCH 2022** ## **1. ACCOUNTING POLICIES** ## (a) **Statement of compliance** The financial statements of the Royal Masonic Benevolent Institution (the “Charity”) have been prepared in accordance with applicable UK accounting standards, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland” (“FRS 102”). Additionally, they comply with the Statement of Recommended Practice “Accounting and Reporting by Charities” (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. ## (b) **Basis of preparation** The financial statements have been prepared on a going concern basis under the historical cost convention, as modified by the revaluation of investments, on a basis consistent with previous years. The functional currency of the Charity is considered to be Pounds Sterling because that is the currency of the primary economic environment in which the Charity operates. ## (c) **Going concern** The trustee has assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustee has made this assessment in respect to a period of one year from the date of approval of these financial statements. The trustee of the Charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The trustee is of the opinion that the Charity will have sufficient resources to meet its liabilities as they fall due. ## (d) ## **Incoming resources** Revenue is recognised when the significant risks and rewards of ownership have been transferred, the amount of revenue can be measured reliably, it is probable that future economic benefits will flow to the Charity and when the specific criteria relating to each of the Charity’s revenue channels have been met, as described below: - i. Monetary donations are brought into account when received. - ii. Legacies are recognised where there has been a grant of probate, the executors have identified that there are sufficient assets in the estate after settlement of liabilities to pay the legacy and any conditions attached to the legacy are either in control of the Charity or have been met. Legacies subject to the interest of a life tenant are not recognised during the lifetime of the life tenant. - iii. Dividends are reinvested in the CAIF on the date that they are declared. Page 18 of 22 ## **ROYAL MASONIC BENEVOLENT INSTITUTION** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **YEAR ENDED 31 MARCH 2022** ## (d) **Resources expended** Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Charity to that expenditure, it is probable that settlement will be required and the amount of any obligation can be measured reliably. All resources expended are recognised on an accruals basis, with the exception of grants as noted below. Grants are recognised as expenditure in the year in which the grant is formally approved by the Charity and has been communicated in writing to the recipient, except to the extent that it is subject to conditions that enable the Charity to revoke the award. ## (e) **Employee benefits** All staff are employed by the parent charity, The Masonic Charitable Foundation. No charge is made to the Charity in respect of staff providing services to the Charity. No remuneration is paid to trustees and no expenses reimbursed. ## (f) **Fund accounting** Unrestricted funds may be utilised for any purpose in accordance with the charitable objectives of the Charity. The designated reserve will fund the ongoing grant commitments to the named beneficiaries of the Charity until their demise. Any excess funds following the death of the last beneficiary will then be transferred to the general fund. ## (g) **Investments** Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are stated at market value. All realised and unrealised gains and losses are recognised within the Statement of Financial Activities. Investments which the Charity holds for resale or pending their sale and cash or cash equivalents with a maturity date of less than one year, which are held for investment purposes, are disclosed as current asset investments. ## (j) **Taxation** The Charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and it is considered to pass the test set out in paragraph 1, schedule 6 of the Finance Act 2010, and therefore it meets the definition of a charity for U.K. Corporation 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 within the underlying cost to which it relates. Page 19 of 22 ## **ROYAL MASONIC BENEVOLENT INSTITUTION** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **YEAR ENDED 31 MARCH 2022** |2.
**DONATIONS AND LEGACIES**
Festivals
Other donations
Legacies
3.
**CHARITABLE ACTIVITIES**
Transferred Beneficiaries Fund
Support Costs
4.
**INVESTMENTS**
Fixed Asset Investments:
- Managed Funds
MCF CAIF
CCLA Property Fund
Current Asset Investments
- RLAM Cash Reserve funds
- Cash and cash equivalents
**MOVEMENTS IN INVESTMENTS**
**Listed**
Balance at 1 April 2021
Additions
Disposals
Investment income reinvested
Management fees charged to the fund
Gains/(losses)
Balance at 31 March 2022||2022
2021
£'000
£'000
555
737
33
31
2,730
1,185
3,318
1,953
2022
2021
£'000
£'000
98
126
0
0| |---|---|---| |||98
126| |||March 2022
March 2021
£'000
£'000
21,969
16,325
757
630| |||22,726
16,955| |||943
1,945
0
0| |||943
1,945| |||| |||23,669
18,900| |||18,900
14,252
3,825
1,400
(1,000)
0
412
337
(105)
(74)
1,637
2,985| |||23,669
18,900| Page 20 of 22 ## **ROYAL MASONIC BENEVOLENT INSTITUTION** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **YEAR ENDED 31 MARCH 2022** |4.
**INVESTMENTS (Continued)**
**RECONCILIATION TO SOFA**
Gains/(losses) on listed investments
5.
**DEBTORS**
Amounts owed by group undertakings
Prepayments and accrued income
Other debtors
6.
**CREDITORS**
**Falling due within one year**
Grants payable
Accruals and deferred income
7.
**MOVEMENT IN FUNDS**
Balance at
Income Expenditure
1 April
2021
£'000
£'000
£'000
**Unrestricted funds**
General reserves
18,935
3,730
(388)
Designated reserves
903
0
0
**Total funds**
19,838
3,730
(388)
**Prior year**
Balance at
Income Expenditure
1 April
2020
£'000
£'000
£'000
**Unrestricted funds**
General reserves
13,934
2,291
(355)
Designated reserves
983
0
0
**Total funds**
14,917
2,291
(355)|4.
**INVESTMENTS (Continued)**
**RECONCILIATION TO SOFA**
Gains/(losses) on listed investments
5.
**DEBTORS**
Amounts owed by group undertakings
Prepayments and accrued income
Other debtors
6.
**CREDITORS**
**Falling due within one year**
Grants payable
Accruals and deferred income
7.
**MOVEMENT IN FUNDS**
Balance at
Income Expenditure
1 April
2021
£'000
£'000
£'000
**Unrestricted funds**
General reserves
18,935
3,730
(388)
Designated reserves
903
0
0
**Total funds**
19,838
3,730
(388)
**Prior year**
Balance at
Income Expenditure
1 April
2020
£'000
£'000
£'000
**Unrestricted funds**
General reserves
13,934
2,291
(355)
Designated reserves
983
0
0
**Total funds**
14,917
2,291
(355)|| |---|---|---| |||| ||19,838
3,730
(388)|1,637
0
24,817| ||Balance at
Income Expenditure
1 April
2020
£'000
£'000
£'000
13,934
2,291
(355)
983
0
0|Gains/ Transfers
Balance at
(losses)
31 March
2021
£'000
£'000
£'000
2,985
80
18,935
0
(80)
903| ||14,917
2,291
(355)|2,985
0
19,838| Page 21 of 22 ## **ROYAL MASONIC BENEVOLENT INSTITUTION** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **YEAR ENDED 31 MARCH 2022** |8.
**ASSETS AND LIABILITIES**
**Unrestricted funds**
General reserves
Designated reserves
**Total funds**
**Prior year**
**Unrestricted funds**
General reserves
Designated reserves
**Total funds**|Investments
Current
Current
Fund
Assets
Liabilities
Total
£'000
£'000
£'000
£'000
22,726
1,377
(0)
24,103
0
714
0
714| |---|---| ||22,726
2,091
(0)
24,817| ||Investments
Current
Current
Fund
Assets
Liabilities
Total
£'000
£'000
£'000
£'000
16,955
1,983
(3)
18,935
0
903
0
903| ||16,955
2,886
(3)
19,838| ## 9. **RELATED PARTY TRANSACTIONS** The MCF has borne all the administrative costs of supporting the Charity, as well as its fellow subsidiary charities. . ## 10. **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 include the accounts of the Charity, can be obtained from the registered office of the Charity. Page 22 of 22