Charity ReElStration Number: 207610 THE MARK BENEVOLENT FUND FINANCIAL STATEMENTS 31 AUGUST 2021
THE MARK BENEVOLENT FUND TRUSTEES, REPORT FOR THE YEAR ENDED 31 AUGUST 2021 The Trustees present their report and the financial Statements for the year ended 31 August 2021. LEGAL AND ADMINISTRATIVE DETAILS The charity is The Grand Lodge of Mark Master Masons, Fund of Benevolence and is re8lStered at thè Charity Commission under registration number 207610. The charity operates as The Mark 8enevolent Fund. The charity's address is 86 St James's Street, London SWIA IPL. TRUSTEES The Trustee5 of The Maik Benevolent Fund who served during the year, and to the date of signing this report, were: D F Ashbolt J Bell l N Cla¥k H K Emmerson P Hawken K Hicks C E Lord, OBE. JP A S McLaren A Morris T C Pakra5hi A l Torrance MJ LWhelan,JP Newly appointed Trustees receive an induction from the President and Grand Treasurer and attend training courses as necessary. ORGANISATION The Board of Trustees delegate the day-to-day running of the charity to the management of the Grand Lodge of Mark Master Masons. There are two sub-committee5 to the Board of Trustees.. The Worthy Causes Comrnittee provides assistance to othèr re81Stered charities. It meets two to three times a year to examine applications looking for financial support or frtsm Mark Provinces and Di5tiicts wishing to support suitable charities. The appropriatentsss of the allocation of the charity's funds is at the forefront as applications are considered. Following a Worthy Causes Committee meeting, all members are sent copie5 of the approved application5. If no queries are raised within ten day5. these grants will be paid. All of the Trustees ol the charity are members of the Committee. The Worthy Causes Committee also ha5 a Subcommittee that admSnisters grants up to £50,000 to enable them to be dealt with swiftly. The members of thi5 committee are D Ashbolt (Chairman), P Hawken, K Hicks. A McLaren. A Morris, C E Lord, T C Pakrashi. The Petitions Committee provides relief to poor and distressed Freemasons, their wives. widows and children. Individual grants of up to £15,000 may be made fof help with general living expense5 for a 12- month period, relief of debt if appropriate and one-off items such as roof repairs and heating system replacement. The Committee meets 8enerally every six to eight weeks dependin8 on the level of applications. The member5 of the Committee are H K Emmerson (Chairman), I Clark, D Ashbolt, M Whelan and A Torrance. Page 1
THE MARK BENEVOLENT FUND TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2021 PRINCIPAL ADVISERS BANKERS Clydesdale Bank plc 154-158 Xensington High Street London W8 7RL FUND MANAGERS JMFinn&CoLtd 4 Coleman Street London EC2R STA AUDITOR Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW CONSTITUTION AND OBJECTS The Mark Benevolent Fund is governed by both statute Icharities Act) and the ConstitutSons and Re8ulation5 dated 1955 and subsequent amendments. The objects of the charity are.. i) the application of the charity's funds to any other exclusively charitable purposes as may be determined from time to tlme by the trustees. In reachin8 that detefrnination. the trustees seek and consider the views of the Grand Lodge and the relief of need, hardship and distress arnong Mark Master Masons, their f3milie5 or other dependant andlor amon85t retired ernployees of The Grand Lodge in such manner a5 the trustees shall from time to time determine. The Mark Benevolent Fund is st¢pported by contributions from Brethren, Ladies. LodEes and Provinces and these may take ihe form of either donations. covenants, legacie5 or bequests. The Trustees Confirm that they have complied with the duty in Section 17 of the Charities Act 2011 to havè duè regard to the guidance issued by the Charity Commission on public benefit. 21 AcfiviTIÉS The total grants in the year paid out under the trusiees. grant making policy (see page 31 amounted to £2,166,32712020.' £1.422.7441 of which £1,286,OCK) was paid to huspices, E832,958 was paid to 42 charities, and £47,369 wa5 paid to Mark Master Masons and other dependants in need. The Trustees have continued to review all application5 for grants and grants were made from The Mark Benevolent Fund to Mark Master Masons or their wive5, widows, sisters etc. and for specific purptsses to other Re8lStered Charities. FUNDRAISING The majority of thè tharitV'5 income is from the members of the Grand Lodee of Mark Master Masons. The Mark Benevolent Fund has not engaged with third parties to raise fund5 and any direct approach to members of the public for funding has been limited. No cornplaints were received in relation to the Mark Benevolent Fund'5 fundraising activities. Page 2
THE MARK BENEVOLENT FUND TRUSTEES, REPORT ICONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021 GRANT MAKING POLICY Grants are made to Mark Master Masons or their wive5, widows, slsters or other dependents or children, or employee5 of the Grand Lodge who have retired, provided that Such grants are for the relief of need. All grants awarded are subject to financial means testing and approval by the Petitions Committee. Grant5 are 8150 made for charitable purposes other than for the relief of need (which are reported to Grand Lodge). All granis awarded aTe subjeci to review and approval bythe mernber5 of the Worthy Cause5 Committee. In April 2021. the Trustees of th@ Mark Benevolent Fund announced a Major Capital Grant to hospices to commemorate the significant contribution made to the Crown and the nation by H R H The Prince Philip, Duke of Edinburgh Isee note 4, page 131. RESERVES POLICY The total reserves of the Fund amounted to £23.50 million 12020.. £20.91 million). comprising unrestricted reserves of £22.48 million12020.' £19.88 million) and designated funds of £1.02 million12020'. £1.03 mlllionl. The free reserves of the Fund total £22.48 million at the year-end12020.' £19.88 million). The majority ol grant5 are paid to Non Masonic Charities with the balance paid in th@ main to the elderly, these take the form of either errergency grants or annuity grants which may have to be maintained for. on average, between 12 and 15 years. It is the policy of the Trustees to enst¢re that the fund has adequate reserves to pay these grants each year. Funds are a150 retained as It IS the practice to make subsiantial donations from time to time and investrnen15 and income therefore must be maintained to further this policy. GOINfj CONCERN The Mark 8enevolent Fund is managed by the Board of Trustees which are all honorary p051tion5 therefore there are no dlrect financial costs in the mana8ement of the fund. The Charities Manager and the financial control administration dutie5 are provided by employees of the Grand Lodge of Mark Master Masons. Our planning processe5 take into consideratlon the current economic climate. including the Covid-19 pandemic, and its ongoing impact on the various sources of income and planned donations. The fund raising is mainly provided by Mark Masons who have. by rotation of each province in the England and Wales. Mark Benevolent Festivals which are usually the result of special events over the previous five to seven years. It ¢$ expected that this will continue for the foreseeable future. In addition the donation policy of the trustees is that the annual payments to Worthy Causes do not normally exceed the dividend income from the inve5tment5. Trustees consider that there are sufficient reserves held at 31 August 2021 to manage any foreseeable downturn in the UK economy. The Trustees consider that there is a reasonable expectation that the charity has adequate resources to continue in operational exi5tencÈ for the foreseeable future and, for thls reason. the Trustees continue to adopt the going concern basis in prepaiing the financial statements. INVESTMENT POWERS Investment powers are set out and operated within the provisSons of the Trustee Act 2000. The investments are managed by the Investment Comrnittee, appointed by the Trustees, which is advised by l M Flnn & Co Limited. INVESTMENT POLICY AND PERFORMANCE The policy of the trust deed is to quickly provide grants in rellef of need for Mark Masons and their dependents and from time to time to rnake substantial grants to Worthy causes Ilkely to benefit Mark Ma50n5 and so far as funds permit to make similar grants to non-masons. The sources of income for the fund are donatlons from the members with additional receipts from the annual festivals, the amount of which depends on the numbec of Lodges in the province supporting the festival, and any investment income (including capital gains). Changes are made to investments held on the basis of seeking to maintain the existing funds and to increase them so far as p055ible. In accordance with these aims. the funds are managed by J M Finn & Co Limited. The Investment Committee. appointed by the Trustees, reviews the funds on a regular basis. Page 3
THE MARK BENEVOLENT FUND TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2021 RISK POLICY The Trustee5 have reviewed their procedures to identify and examine the major strategic, business and operational risks that the Charity faces. The necessary 5YStems are e5tabli5hed to enable report5 to be produced to ensure that action is taken to mana8e the effects of the identified risks. Below a summary of ihe major risks faced and policies to mitigate these. Risk Loss ol Key Staff Disaster recovery steps to mltlgate rlsk Succession planning, document systems, agree notice period5 and handovers Agree IT recovery plan, implement data back-up. review insurance, create disaster recovery plan Review & agree policy, obtain advice & management, implement reserves policy, regular performance monitoring Communicate with supporters & beneficiaries. good quality reporting of aCtVItieS & financial situation, implement public relations traininglprocedures Review & agree compliances procedures and allocation of staff Te5pon5ibililies Investment Policies Public Perception Regulatory reporting TRUSTEES. RESPONSIBILITIES The Trustees are responsible for preparing the Trustees. Report and the financial statemen15 in accordantè with applicable law and regulations. Charlty law requires the Trustees to prepare financial statements for each financial year irt accord3n¢e with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law. Under charity law the Trustees must not approve the finan¢sal statements unless they are sa115fied th3t they Bive a true and fair view of the state of affairs of the charity and of its net IncominOut80in8 resources for that period. In preparing these financial statements, the Trustees are required to.. select 5Ultable accounting policies and then apply them con515terbtly; observe the methods and principles in the Charities SORP.. make Judgments and estimates that are reasoNable and prudent.. prepare the financial statements on the going concern basis unless it is inappropriate to prèsume that the charity will continue to operate. The Trustee5 are responsible for keeping adequate accounting records ihat are sufficient to show and explain the charity'5 transactions and disclose with reasonable accuiacy at any time the financial position of the charity nd enable them to ensure that the financial statement5 comply with the Charities Act 2011, the Ch3rity (Accounts and Reports) Regulations 2008 and the provisions of the charlty's constitution. 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. AUDITOR Crowe U.K. LLP has indicatèd its willingness to be reappointed as statutory auditor. Approved by the Tru5tee5 on 24, january 2022 and si@ned on their behalf by.. D F A5hbolt Deputy Presidènt o e Mark Benevolent Fund Page 4
Independent Audltorfs Report to the Trustees of the Mark Bènevolent Fund Opinion We have audlted the financial statement5 of the Mark Benevolent Fund for the year ended 31 August 2021 which comprise Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and note5 to the financial statements, includi4)g significant accounting policies. The financial repoiting framework that has been pplied in their preparation 15 applicable lèw and United Kingdom Accounting Standards, includSng Financial Reporting Standard 102 The Financial Reporting Standard applicable in thè UK and Republic of Ireland Iunited Kingdom Generally Accepted Acetsuniing Practi1. In our opinion the financial statements.. give a true and fair view of the state of the charity's affairs as at 31 August 2021 and of it5 incoming resouyces and applicarion of resources, including its income and expenditure for the year then ended,. have been properly prepared in accordance with United Kin8doTh Generally Accepted Accounting Practice; and have been preparod in accordance with the requirements of the Charities Act 2011. Basis for opinlon We conducted our audit in accordance with InternatiL)nal Standards on Auditing IUKI IISAS IUKII and applicable law. Our responslbilitles under those standards are further described in the Auditor's responsibilities for the udit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirement5 that are relevant to Oljf audit of the financial statements in the UK, intluding 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 basi5 for our opinion. Concluslons relatlng to going concern In auditing the financial statements. we have concluded that the tru5tees' use of the going concern basi5 of accounting in the preparation of the financial statements 15 appropriate. Based on the work we have perforrned, we have not identified any material uncertainties relating to events or conditions that. individually or collectively, may cast $18nificant doubt on the charity's ability to continue as a going concern for a period of at leasi twelve months from when the financial statèments are authorised for Issue. Our responsibilitie5 and the responsibilities of the trustees wilh respect to going concern are described in the relevant sections of this report. Other Intormatlon The trustees are responsible for the other information contained within the annual report. The other inlormation comprisès the information included in the annual report, other than the financial statements and our auditor's report thereon. 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 inforrnation and, in doing $0, consider whether the other informatloll 15 materially incon51Stent with the financial statements or our knowledge obtained in the audit or otherwise appeals to be materially misstated. If we identify such material inconslstencies oi apparent material misstaternents, we are required to determine whefheT this gives rise to a material misstatement irb 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. Page 5
Matters on which we are requlrèd to report by exceptlon We have nothing to report in respect of the folltswing matters in relation to which the Charities (Accounts and RepDrtsl Regulations 20f)8 require us to report to you if, in our opinion.. the inforrnation given in the financial statements is incon51Stent in any material respect with the trustees, report.. or sufficient accounting records have not been kept,. or the financial statemènts are not in agreement with the accounting records and returns,. or we havè not received all the information and explanations we require for our audit Resptsnslbilities of trustees A5 explained more fully in the trustees, ¥esponsibilities statement set out on page 4, the trustees are responsible for the preparation of the financial statements and foi being satisfied that they give a true and lair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitvs ability to continue 85 3 golng concern, disclosing, as applicable, matter5 related to goin8 concern and using the going concern basi5 of accounting unless the trustees either intend to liquidate the charity or to cease operation5, or have no realistic alternailve but to do so. Audttor's responslbilities for the audit of the finandal statements We have been appointed as auditor under section 144 of the Charitlès Aci 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 statement5 as a whole are free from rnaterial misstatement. whether due to fraud or error, and to 155ue an auditor's report that include5 our opinion. Reasonable assurance 15 a high level of assurance, but 15 not a guarantee that an audit conducted in accordance with ISA5 IUKI will alway5 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 u5er5 taken on the basis of these financial statements. Irregularities, includin8 fraud, aTe instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above. to detect material mi55tatements in respect of irregularities, including fraud. The extent to which OUT procedures are capable of detecting irregularities, including fraud is dètailed below.. A further description of our responslbilltles for the audit of the financial 51atèments is located on the Financial Reporting Council's website at-. www.frc.or auditorsres onsibilities. This description forms part of our auditor's report. Extènt to whlch thè audlt was consldered capable of detettin8 Irregularltles. Includlng fraud l¥regularities. including fraud, are instance5 of non-compliance with laws and regulations. We Identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and di5CUS5ed thesè bètween our audit team members. We then designed and perforrned audit procedures responsive to those risks. including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion. Page 6
We obtained an understanding of the legal and regulatory frameworks within which the charity and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity and the group for fraud. The laws and regulations we considered in this context for the UK operations included General Data Protection Regulation (GDPR).
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Management Board about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, sample testing of income, reviewing regulatory correspondence, and reading minutes of meetings of those charged with governance.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed noncompliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
Use of our report
This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Crowe U.K. LLP
Statutory Auditor
London
7 March 2022
Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
THE MARK BENEVOLENT FUND STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2021 2021 2020 Notes INCOME AND ENDOWMENTS FROM: Donations and legacies Investments: Investment income Interest receivable Other.. Rent receivable. 86 St. James's Street, London SWI 1.224,870 1,360,908 503,998 1,265 592.166 236 Total 1.730,133 1.953,310 EXPENDITURE ON: Ralslt)g funds Investment management fee5 Charltable actlvltles Grants & Support Costs 8enevolent jewe15 distribution 98,516 89.705 2,532,970 44,855 1.781.523 42.857 Total 2,676.341 1,914,085 OPERATING ILOSSI I SURPLUS 1946.2081 39,225 Nel gains / Ilossesl on Investment assets 3,534.646 158,3601 NET INCOME I IEXPENDITUREI 2,588,438 (19.135? NET MOVEMENT IN FUNDS 2.588,438 119.135) FUND BALANCES As at I September 2020 20.912.240 20,931,375 FUND BALANCES CARRIED FORWARD 23.500,678 20.912,240 All of the above ère represented by contlnuing operations. There are no recoÉnised Èains and losses other than those shown above. The notes on pages 11 to 16 form part of these flnanclal statements. Page 8
THE MARX BENEVOLENT FUND BALANCE SHEET 31 AUGUST 2021 2021 2020 Notes FIXED ASSETS Tangible fixed a5set5 Investments 1,020,800 22,150,786 1.029,200 18,814,657 23,171.586 19,843,857 CURRENT ASSETS Debtors Cash at bank 152.250 317,627 79,418 1,054,454 469,877 1,133,872 CURRENT LIABILITIES Creditors 140,785 65.489 140,785 65.489 NETCURRENT ASSETS 329,092 1,068.383 TOTAL ASSETS LESS CURRENT LIABILlEs 23,500,678 20,912,240 REPRESENTED BY FUNDS Unrestricted Designated fixed assets fund General fund 1.020.800 22.479,878 1,029,2t 19.883.040 23.500.678 20,912,240 The financial Statements were approved by the Trustees and authorised for issue on 24, January 2022 and signed on their behalf by- J Bell Presldent of the Mark Benevolent Fund The notes on pages 11 to 16 form part of thèse flnanclal statements. Page 9
THE MARK BENEVOLENT FUND CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2021 2021 2020 Notes Cash flowg from operating actlvltle5: Net cash used by operating activities 11,440,607) [530,935J Cash flows from Investlng actlv5tles: Investment income Proceed from sale of inve5trnenlS Purchase of investments 505.263 2,622.412 I2,42395) 592,402 2,487,870 12,398.165) Net cash provlded by Inve5tlng artlvltles 703 780 Change In cash and cash equlvalents In the year 1736.827} 151,172 Cash and cash equivalents brought forward 903 282 Cash and cash equSvalents carried forward Reconclllatlon of net lexpendlturellln¢ome to net cash flow from operatin8 activitiès 2021 2020 Net lexpenditurel/in¢ome for the year las per Statement 2.588,438 (19.1352 Adjustment for.. Investment income Loss/lgainl on investments Depreciation of tangibles fixed assets IlncTèasel/decrease in debtors Increaselldecrea5el in crèditors 1505,263} 13,534.6461 8,400 172.8321 1592,402) 58,360 8,400 383 Net cash used by operating actlvltles 07 Analysls of cash and cash equlvalents 2021 2020 Cash in hand 317.627 1,054,454 Total Page 10
THE MARK BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 CHARITY INFORMATION The Charity is a Public Benefit Entity registered as an unincorporated charity registered in England and Wales (registration no. 2076101 and operates from its registered office Mark Ma50ns' Hall. 86 St. James's Street, London, SWJA IPL. ACCOUNTING POLICIES (al Basis of Accountln8 The financial statements have been prepared in accordance with the Charities SORP IFRS1021 applicable to ch8ritie5 preparing their accounts in accordance wlth the Financial Reporting Standard applicable in the UK and Republic of Ireland and the Charitie5 Act 2011 and UK Generally Accepted Practice. The financial statements have been prepared to Elve a 'true and fair" view and have departed from the Charities IAccounts and Report51 Regulations 2008 only to the extent required to provide a "true and fair~ view. This departure has involved following Accounting and Reporting by Charities pieparin8 their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republlc of Ireland IFRS1021 issued on 16 July 2014 rather than the Accounting and Reporting by Charities.. Statement of Recomrrended Pra¢tlce effective from l April 2005 which has since been withdrawn. (bl Donations Donations received for a speciftc year and deposited with The Mark Benevolent Fund are included in the Statement of Financial Activities In the year of receipt. Other donations, where the restslulion to make a gift to The Mark Benevolent Fund is uncertain. are included in the Statement of Financial Activities on a receipts basis. Gifts Gift5 received ill the year are Included in the Statement of Financial Activitie5 at their market value on the date received. Amortlsatlon of Leasehold Propèrty In accordance with the terrns agreed with the Charity Commissioners, The Mark Benevolent Fund invested £1,200.000 in the acquisition and conversion of 86 St. James's Street, London SWI. The original lease was for 99 years from 5 january 1979. This has been subsequently renegotiated and a new 125 year lease from April 2018 agreed. Thi5 has resulted in an increase in the charge for the amortisation of the lease from £4.200 per annum to £8.400 with effect from September 2019. This will continue to be borne by the General Fund of The Grand Lodge of Mark Master Mason5. The residual econtsmic life of leasehold property is reviewed on a regular ba515. The Trustees have determined the p051tion with re6ard to property deprèciation as stated above. The Trustees are also of the view that the tarrying value of this a55et is not impaired having a55es5ed the service deliverv and will undertake future reviews in accordance with FRS 102. lel Investments Fixed asset investments are revalued to market value at the balance sheet date and the Surplus or dèficit of this revaluation represents uniealised gains or losse5. The differences between the carrying value lor cost if acquired in the yearl and the proceed5 of investments disposed of represent realised investment gains or losse5. Net realised and unrealised gains or losses are shown a5 a tombined figure in the Statement of Financial Activities. Page 11
THE MARK BENEVOLENT FUND NOTES TOTHE FINANCIAL STATEMENTS {CONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2021 ACCOUNTING POUCIES ICONTINUEDI Expenditure Expendlture Is accounted lor under the accruals concept. The irrecoverable èlement of VAT is in¢ludÈd with the item of expense to which it relates. Staff are employed by The Grand Lodge of Mark Master Mason5 and relevant staff costs are recharged to The Mark Benevolent Fund as part of the administration fee. Investment Income Investment income is accounted for on an accruals basis. Ihl Governance Costs Governance costs relate to the statutory running of the charity. Flnanclal Instruments The charity has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortlsed cost using the effective interest method. Financial assets held at atnortised cost comprise cash and bank and in hand. together with trade debtors, accrued interest ènd other debtors. f inancial liabilities held at amortised cost comprise grant5 payable and atcru31s. Investments, including bonds held as part of an investment portfolio are held at fail value at the Balance Sheet date, with gains and losses bein8 recognised within income and expenditure. Crltlcal accountlng lud8ements and key sources of estlmatlon uncertaSnty In the application of the charity's accounting policies. Trustees are required to make judgernents, estimates, assumptions about the carrying values of asset5 and liabilities that are noi readily apparent from other sources. The estimates and underlying assumptions are based on hi5toric61 experience and other factors that are considered to be relevant. Actual result5 rnay differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision 3ffect5 only that period, or in the period of the revision and future periods if the revision atfect5 thÈ current and futuie periods. In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting asset5 and liabilities at the balance sheet date are likely to result in a material adjystment to their carrying amounts in the next financial yea¥. Page 12
THE MARK BENEVOLENT FUND NOTES TO THE FINANCIALSTATEMENTS {CONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2021 ACCOUNTING POLICIES ICONTINUEDI Ikl Going contèfn The Mark Benevolent Fund is managed by the 8oard of Trustees which are all honorary positions therefore there are no direct financial cost5 in the management of the fund. The Charities Manager and the financial control administration duties are provided by employee5 of the Grand Lodge of Mark Master Masons. Our planning proce55e5 take into consideration the current economic climate including the Covid-19 pandernic, and it5 ongoing impact on the various sources of incorne and planned donations. The fund raising is mainly provided by Mark Masons who have. by rotation of each Pfovince in the England and Wales. Mark Benevolent Festivals which are usually the result olspecial events over the previous five to seven years. It 15 expected that thi5 will continue for the foreseeable future. In addition the donation policy of the trustee5 IS that the annual payments to Worthy Causes do not normally exceed the dividend income from the investments. Trustees con5iderthat there are sufficient reserves held at 31 August 2021 to manage any foreseeable downturn iii the UK economy. The Trustees consider that there ss a reasonable expectation that the ¢harity has adequate resources to continue in operational existence for the foreseeable futufe and, for this ieason. the Trustees continue to adopt the going Concern basis in preparing the financial Statements. SUPPORT COSTS 2021 2020 Administration fee Printing and stationery General expenses Rent paid Bank Charges and Insurance costs Governance costs (note Sl 2LMI,000 200,000 IIA25 135.000 18 19.800 366.643 4,227 135.(X 52 19.500 358.779 All support costs are applicable to grant makin8 which 15 the chèrity's only charitable activity and are included wlth the grant making costs on the face of the Statement of Financial Activities. Page 13
THE MARK BENEVOLENT FUND NOTES TO THE FINANCIALSTATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2021 GRANTS 2021 2020 Grant5 to other charities Major capital 8rant to support hospices in England & Wales Grants to individuals 832,958 1,286,1)00 47,369 2,166.327 366.643 2,532.970 1.304.326 118.418 1.422.744 358.779 1,781,523 Support costs (note 31 The grants to other charitie5 in the year were-. Carers Support Centre Leicestershire & Rutland Festive Keystone Boxes Stafford & Qlistrict Carers Trust The Martha Trust United Response Cheriton Community Network Hope4 Centre in Rugby West Yorkshire Scouts Tree of Hope Transform CPR West London Ma50nic Centre Kingfisher Medway Trust Age Concern Manchester Isight Cornwall Miskin Scout Village CLand & Westmorland Laptops Project Clowns in the Sky SERV OBN - Blood Bike Group Basing5toke & Alton Cardiac Rehab Chafltv Blotsming Blossoms Maryport Inshore Rescue Boat Charitv I, Burstow Scouts Gioup Hoisley. Bookham & Leatherhead Riding for the Disabled Disabled Sailors Association Colney Heath Scout Group I" Warlingham Scout Group Abbey Lane JFC- Sheffield Kingfisher Medway Trust Sea Pallin8 Independent Lifeboat Reigate & 8anstead Women's Aid Forget Me Not Children's Hospice George Elliot Hospital- Serenity Garden Project st John Ambulance- Southwlck Beep Fund Ltd Kingfisher Medway Trust Kent Association for the Blind Cheltham's School of Music Peter Le Marchant Hertfordshire Scouts Emergency Cyprus Appeal 2,883 4,01)0 3,581 13,288 3,980 6,154 74,500 29.512 7.000 32.739 IS.897 10,700 20.000 25,000 29.600 5.000 6,678 62,890 5,192 18,506 27,590 15,1)00 6,880 13,375 29,712 56,394 5,430 10.000 2,608 24.000 83,500 24,605 8,440 2,500 25.000 17.345 25.000 Page 14
THE MARK BENEVOLENT FUND NOTESTO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2021 GRANTS Icontinuedl Age Contern- Elderly Merstham Redhill & Reigate Kingfisher Medway Trust Imperial Health Charity 1,850 33,120 34,509 832,958 1,304,326 The Major Capital Grant of £1.286.000 was distributed through Mark Lodges in England & Wales who each nominated a local hospice to receive a £l.000 donation wholly funded by the Mark Benevolent Fund. Of our 1,286 lodge5 of Mark Master Masons, 230 different charities were chosen which in turn manage the runnin8 01273 h05Pitès. GOVERNANCE COSTS 2021 2020 Auditor's remuneration 19,81JO 29.500 No Trustee received any remuneration or reimbursement of expenses during the current or previous vear. FIXED AssFrs Leasehold property C05t At 31 August 2021 and I September 2020 2021 1.2QO,000 Depreciation At I September 2020 Charge for the year 170,800 8.400 At 31 Au8U5t 2021 179,200 Net Book Value At 31 Au8U5t 2021 1,020.800 At 31 AugUSt2020 1,029,200 Page 15
THE MARK BENEVOLENT FUND NOTESTO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2021 INVESTMENTS 2021 202D Market value at I September 2020 Les5 .' Disposal proceeds Add Acquisition5 at Cost Net realised and unreali5ed gains 18,814,657 12,622,412) 2,423,895 3,534.646 18.962.722 (2.487.870) 2.398.165 158,360) Market value at 31 August 2021 22.150.786 18,814,657 Historic c05t 13,716,021 13,295,396 All investments are listed on a recognised stock exchanee and managed in the UK by J M Finn & Co Limited. The investments at the year-end comprised.. Fixed interest Equities Other Iproperty. Alternative Assets & Emerging Economiesl 2,176,366 15,553,816 4,420,604 22,150,786 2,381,115 12,520,763 3.912,779 18,814.657 Unrealised gainslll055esl amountin8 to £4,740,70912020.. £1,825,20513re based on a valuation at the year-end which is unlikely to equate to the actual gains and losses which wlll arise on the subsequent realisatlon ol those investments. TAXATION The Mark Benevolent Fund 15 a re8lStered charity and is able to take advant38e of the exèmptions from tax for charitie5 on its income and investment gain5. RELATED PARTY TRANSACTIONS The Fund is administered by The Grafid Lodge of Mark Master Masons IGLMMMI. The Fund paid management fee of £200.000 in the year12020'. E20D.O(Xll to GLMMM to cover staff and administration costs and charged rent of £nil12020.. £nill lo GLMMM. Due tts changes in the terms of the Lease, GLMMM now pays the rent direct to Crown Properties. Included in Donations and Legacies is an amount of £135.IXX)12020.- £135.0001 in respett of the rent paid directly on behalf of the Fund. A corresponding expense is included within support Costs. At the yearend GLMMM owed MBF £29,31012020= MBF owed GLMMM £14.2841 in respect of these transactions. Page 16