Chartty Reglstratlon Number: 207610 THE MARK BENEVOLEKf FUND FINANCIAL sfATEMENTS 31 AUGusf 2022
THE MARK BENEVOLENT FUND TRUSTEES, REPORT FOR THEYEAR ENDED 31 AUGU 2022 The Trustees present their report an(J the financlal statements for the year ended 31 August 2022. LEGAL AND ADMINISTRATIVE DAlLs The charlty is The Grand Lodge of Mark Master Masons, Fund of Benevolence and is registered at the Charity Commi55lon under registration nurnber 207610. The charity operates as The Mark Benevolent Fund. The tharlty's address Is 86 St James's Street, London SWIA IPL TRUSTEES The Trustees of The Mark Benevolent Fund who served during the year, and to the date of signing thls report, were- D F Ashbolt J Bell l N Clark W A Dlvall (Appointed 7161221 H K Emmerson IRetlred 7161221 P Hawken (Retired 7161221 K Hicks C E Lord, OBE. JP (Retired 7161221 A S McLarèn A Morris (Retlred 7161221 R J Ollver (Appolnted 7161221 T C Pakrashi D Powell IAppointed 7161221 R F Richardson (Appointed 7161221 J Ste8gles (Appointed 7161221 A l Torrance (Retired 7161221 M J L Whelan, JP Newly appointed Trustees CeIve an Induction from the Presldent and Grand Treasurer and attend tralninB courses a5 nessary. ORGANISATION The Board of Trustèes delegate the day-to4ay running of the charity to the management of the Grand Lodge of Mark Master Masons. There are tsvo Sub-committèes to the Board of Trustees.. The Worthy Causes Committee provides asslstance to other registered charltles. It meets two to three times a year to examine applications looking for financial support or from Mark Provinces and 0i5trict5 wishingto support suitable charities. The appropriateness of the allocation of the charity's fvnds is at the forefront as applications are considere(l. Following a Worthy Causes Committee meetin& all mernbers are sent copies of the approved application5. If no queries are raised withln ten days, these grants will be paid. All of the Trustees of the charity are members of the Committee. The Worthy Causes Committee also ha5 a sub¢ommlttee that administers grants up to £50,000 to enable them to be dealt wlth swiftly. The member5 of thls commlttee are D Ashbolt Ichairmanl. K Hicks, A Mclaren. R Oliver, T C Pakrashi, R Richardson. 21 The Petltlons Commlttee provide5 relief to poor and distressed Freemasons. their wives. widow5 and children. Indlvldual grants of up to £15,000 may be made for help wlth general livlng expenses for a 12- month period, relief of debt If appropriate and one-off items such a5 rovf repairs and heatin8 Svstem replacement. The Committee meets generally every six to eight weeks dependlng on the level of applications. The mernbers of the Commlttee are M Whelan Ichairmanl, I Clark, D Ashbolt, B Divall, J Steggles and D Powell. Page 1
THE MARK BENEVOLENT FUND TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 PRINCIPAL ADVISERS BANKERS Clydesdale Bank pl 154-158 Kensington 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 71W CONSTrnJTION AND OBJEcrs The Mark Benevolent Fund is governed by both statute Icharities Act) ond the Constilutlons and Regulations dated 1955 and subsequent amendments. The objects of the charity are: the application of the eharlt¢s funds to any other exclusively charitable purposes as may be determined from time to tirne by the trustees. In reaching that determination. the trustees seek and consider the views of the Grand Lodge and the relief of need. hardship and distress among Mark Master Mason5, their familie5 or othèr dependant andlor amongst retired employees of The Grand Lodge in such manner as the trustees shall from time to tlme determine. The Mark Benevolent Fund is SUPPQrted by contributions from Brethren. Ladies, Lod8es an¢J Provlnces and these may take the form of either donations, covenants, legacie5 or bèquests. The Trustees confirm that they have complled with the duty in Section 17 of the Charitiès Act 2011 to have due regard to the guidance issuèd by the Charity Commission on publSc benefit. ACTIVITIES The total Erants in the year pald out underthe trustees, grant making pollcylsee page 31 amounted to £906,369 12021.. £2,166,327) of which £3,000 was pald to hospice512021.. £1,286,OC4)1. £876,731 was paid to 33 charities, and £26,638 was paid to Mark MastÈr Masons and other dependants in need. The Trustees have continue<l to revlew all applications for grants and grants were made from The Mark Benevolent Fund to Mark Master Masons or their wives, widows, 51sters etc. and for 5pecifi£ purpose5 to other Reglstered Charitle5. FUNDRAISING The majorlty of the charltls income is from the members ofthe Grand Lodge of Mark Master Masons. The Mark Benevolent Fund has not engaged with third parties to ralse funds and any dSrect approach to members of the public for fundinB has been limited. No complaints were received in relation to the Mark Benevolent Fund's fundraising activities. Page 2
THE MARK BENEVOLENT FUND TRUSTEES. REPORT (CONTINUED FOR THE YEAR ENDED 31 AUGUST 2022 GRANT MAKING POLICY Grants are made to Mark Master Masons or thelr wlves. wldows, sisters or other dependents or children. or employees of the Grand Lodge who have retlred, provlded that such grants are for the relief of need. All grants awarded are subject to financial mean5 te5tin8 and approval by the Petltlons Committee. Grants are also made for charitable purposes other than for the relief of need (which are reported to Grand Lod8el. All 8rants awaided are subject to review and approval bythe member5 of the Worthy Causes Committee. In April 2021, the Tru5tee5 of the Mark Benevolent Fund announced a Major Capital Grant to h05pi¢es to commemorate the significant contributlon made to the Crown and the natlon by H R H The Prince Philip, Duke of Edinburgh (see note 4. pa8e 141. RESERVES POLICY The total reserves of the Fund amounted to £21.20 million 12021- £23.50 million), comprising Un$ttted reserves of £20.14 million12021.' £22.48 rnillionl and designated funds of £1.01 million12021.' £1.02 million). The free reserves of the Fund total £20.14 million at the ye3r-end12021: £22.48 million). The majority of grants are paid to Non Masonic Charities with the balance paid in the main to the elderly. these take the form of either emergency Brants or annulty grants which rnay have to bè maintained for, on average, between 12 and 15 years. It is the polity of the Trustees to ensure that the fund has adequate re5erve5 to pay these grants each year. Funds are alsoi rètained as it is the practice to make substantlal donation5 frorn time to time and investments and incomè therefore must be maintsined to further this policv. GOING CONCERN The Mark Benevolent Fund is managed by the Board of Trusteeswhich are all honorary positions therefore there are no dirert financial costs in the rnanagement of the fund. The Charities Manager and the financial control administration duties are provided by Èmployees of the Grand Lodge of Mark Master Masons. Our planning processes take into consideratlon the current economic climate 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 provincè in the England and Wales, Mark Benevolent Festivals which are usually the result of special events over the previous five to seven years. It Is expected that this will continue for the foreseeable fijture. In addltlon the donation policy of thetru5tees Is that the annual payments to Worthy Giuses do not normally exceed the dividend income from the investments. Trustees conslderthatthere are sufficient reserves held at 31 August 2022 to manage anyforesèeable downturn in the UK economy. The Trustees consider that there 15 a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future and, for this reason. the Trustee5 continue to adopt the going concern basis in preparing the flnancial statements. INvEsTMETr POWERS Investment powers are set out and operated within the provlslons of the Trustee Act 2000. Thè Investments are rnana8ed by thè lrtvestment Committee. appointed by the Trustees, which is advised by J M Flnn & Co Limited. INVESTME1 POUCY AND PERFORMANCE The policy of the trust deed is to quickly provlde grants in relief of need for Mark Masons and their dependents and from time to tlme to make substantial grants to worthy cau5e5 likely to benefit Mark Masons and so far as funds permit to make similar grants to non-masons. The sources of income for the fund are donations from the members wlth additional receipts from the annual festiva15, the amount of whlch depends on the number of Lodges in the province 5UPF)Ortin8 the festival, and any inve5trnent income (including capital gains). Changes are made to Investments held on the basis of 5eekin8 to maintain the existing funds and to increase them so far as possible. In accordance with these alrns, the funds are managed by J M Flnn & Co Limited. The Investment Committee, appointed by the Trustees, revlews the funds on a re8ular basls. Page 3
THE MARK BENEVOLENT FUND TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 RISK POLICY The Trustees have reviewed thèir procedures to identify and examine the major 5trateglc, business and operational risk5 that the charity faces. The neSSary systems are estsblished to enable reports to be produced to ensure that action is taken to rnana8e the effects of the identified rlsks. Below a summary of the major risks faced and policies to mitigate these. Risk Loss of Key Staff Disaster recovery Steps to miti8até rlsk Succession planning, document 5VStems, agree notice periods and handovers ABree IT recovery plan, implement data back-up. revi insurance, create dlsaster recovery plan Review & agree policy, obtain advice & manaEement, implement reserves policy, regular performance monbtoring Communlcate with 5UPPOrter5 & beneflclaries. Bood quality reporting of activities & rinancial situatlon, implement public rÈlations traininyjprocedures Revlew & age compliances procedure5 and allocation of staff responslbllities Investment Pollcles Public Perception Regulatory reporting TRUSTE RESPONSIBILMES The Trustees are responsible for pparing the Trustees, Report and the financial statements In accordance with applicable law and rèBulatlons. Charity law requires the Trustees to ppare financial statements for each financial year in accordance wlth Unlted Kin8doffl Generally Accepted Accounting Practice Ivnited KinÉdom Accountin8Standardsl and applicable law. Under charity law the Trustees must not approve the flnancial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of its net incominyJoutBoin8 resources for that period. In preparlng these financial statements, the Trustees are requlred to.. selert sultable accountin8 policies and then apply them consi5tentty,' observe the methods and principles in the ChaTlties SORP,. make judgments and estimates that are reasonable and prudent,. prepare the financial statèments on the going cOnrn basls unless it is inappropriate to presume that the charity will continue to operate. The Trustees are responsible for keeping adequate accountlnE records that are sufflcient to show and explain the charity's transactlons and dI10$e with reasonable accuracy at any time the financial position of the charlty and enable them to ensure that the financial statements comply wlth the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2(XJ8 and the provisions of the charlws constitution. They are also responsible for safeguarding the assets of the ¢harity and hence for tsking rÈasonable steps for the prevention and detèctlon of fraud and other irregularities. AUDITOR Crowe U.K. LLP has Indlcated its willingne55 to be reappolnte(l as statutory auditor. Approved by the Trustees on 30 January 2023 and si8ned on their behalf by.. D F Ashbolt Deputy President of the Mark Benevolent Fund Page 4
Independent Audltorfs Report to the Trustees of the Mark Benevolent Fu•)d Oplnion We have audited the financial statements of the Mark Benevolent Fund for the year ended 31 August 2022 whi¢h Comprlse Statement of Financial Activlties, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reportin8 framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards. including Financial Reportlng Standard 102 The Financial Reporting Standard appllcable in the UK and Republic of Ireland Iunited Kingdorn Generally Accepte¢J Accountlng Practice). In our opinion the financial statements.. give a true and fair view of the state of the charitvs affairs 35 at 31 August 2022 and of its incoming resources and application of reSoUrs, including its income and expenditure for the year then ended; have been properly prepared in accordan with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordano with the requirements of the Charlties Act 2011. Ba51s for oplnlon We conducted our audit in accordance with International Standards on AudltiriB IUKI IISA5 IUKII and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities for the audit of the financial statements sèction of our report. We are independent of the charlty in accordance with the ethical requirements that are relevant to our audit of the financial statement5 in the UK, including the FRCS Ethical Standard. and we have fulfilled our other ethical responsibllities In accordan with these rèquiremènts. We believe that the audit evldence we have obtained 15 sufficient and appropriate to provide a basls for our opinion. Condusions relatlngto golng concern In auditing the financial statements, we have concluded that the trustees, use of the going toncern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed. we have not identified any materlal unrtaIntieS relating to events or conditions that, individually or collectively. may cast significant doubt on the chority's ability to continue a5 a going concern for a period of at least twelve months from when the financlal statements are authori5ed for Issue. Our responsibilities and the re5POnsibilities of the trustees with respect to 80ing concern are described in the relevant sectlons of this report. Other Informatlon The trustees are responsible for the other information contained within the annual report. The other Information comprises the information iA¢luded in the annual report. other than the financlal statements and our auditorf5 report thereon. Our oplnion on the financial statements doès not cover the other informatlon and we do not express any form of assurance concluslon thereon. Our responslbility is to read the other Information and. in doln8 50, consider whether the other information is materially inconsistent wlth the financlal statements or our knowledge obtsined In the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent materlal misstatements, we a requlred to determlne whether this 8ive5 rise to a materlal misstatement in the financlal statements themselves. If, based on the work we have performed, we conclude that there 15 a material misstatement of this other Informatlon, we are required to report that fact. We have nothing to report in this regard. Page 5
Matters on which we are required to report by exceptlon We have nothing to report respect of the followlng matters in relation to which the Charlties (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinlon: the Informatlon given in the finanrial 5tstements is inconsistent in any material respert with thè trustee5' report,. or sufficient accounting records have not bèen kèpt., or the financial statement5 are not in agreement with the accountin8 records and return5,' or we have not received all the infonnation and explanations we require for our audit Responsibilitie5 of trustees As explained more fvlly in the trustees. responsibilities staternent set out on page 4. the trustees are responsible for the preparation of the financial 5taternents and for being satisfied that they @ive a true and fair view, and for such internal control as the trustees determine is necwary to enable the preparation of finanrial Statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assesslng the chariws ability to continue as a going conrn, disclosin& a5 applirablè, matters related to going concern and using the going concern basis of accounting unless the trustees either Intend to liquidate the charity or to cease operations, or have no reallstic alternative but to do so. Auditorfs responsibllttles lor the audtt of the flnancSal ststements We have been appointed a5 auditor under section 144 of the Charities Act 2011 and report In accordan wlth the Act and relevant regulations made or havhn8 effe¢t 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 a5sur3nce 15 a high level of a55urance, but is not a guarantee that an audit conducted In accordance with ISAS IUKI will always detect a material mi551atement when it exists. Misstatements Can arlse from fraud or error and are considered material if. individually or in the aggregate, they could reasonably be expected to influence the economic detisions of users taken on the basis of these financial statements. Irre8ularities, Including fraud, are Instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, Outlined above. to detect matefial misstatements in respect of irregularities, including fraud. The extent to whlch our procedures are capable of detecting irregularities. including fraud is detailed below: A further description of our responsibilities for the audit of the financial statements is located on the Financial Reportin8 Council's webslte at.. www.frc.or .uk auditorsre5 onsibilities. This descrlptlon fornis part of our auditorfs report. Extent to whlth the audlt was consldered capable of detectlng Srregularltle5, Includin8 fraud Irregularitie5. includin8 fraud, are instances of non<ompliance with law% and regulations. We identified and assessed the Tisks of material misstatement of the flnancial statements from irre8ularitles, whether due to fraud or error. and discussed these between our audit team members. We then designed and performed audlt pro¢èdurÈs responsive to those risks, including obtaining audit eVIden sufflclent and appropriate to provide a basis for our opinion. Page 6
We obtained an understanding of the legal and regulatory frameworks within which the ¢haiity and group operates, focusinB on those laws and regulations that have a direct effect on the determination of material amounts and disclosures In the financlal statements. The laws and regulations we considered in this contÈxt were the Charities Act 2011 together with the Chafities SORP IFRS 1021. We a5se5sed the required compliance with these laws and regulations as part of our audit procedures on the related flnancial statement items. In addition, we considered provisions of other laws and regulations that do not hèvè a direct effect on the financial statement5 but Complian with which might be fundamental to the char5tVs and ihe group's ability to operate orto avoid a material penalty. We alsoconsidered the opportunitiesand Incentives that may existwithln thè eharrtyènd the group for fraud. The laws and regulations we considered in this Context for the UK operations included General Data Protection Regulation IGDPRI. Audlting standard5 limit the required audit procedures to Identify non-compllance with these 18ws and regulations to enquiry of the Trustees and other management an¢J inspection of gUlatOry and legal correspondence, if any. We identified the greatest rlsk of materlal Impart on theflnanclal statements frorn irre8ularitie5, rncludin8 fravd, to be within the tlming of recognition of income and the overrldè of controls by mana8emeni. Our audlt procedures to respond to these risks included enquiries of management and the Management Board about thelr own identification and a5se5srnent of the risks of irregularStles, sample testing on the posting of journal5, reviewing accounting estimates for biases. sample testing of incorne, reviewing regulatory correspondence. and readlng minutes of meetings of those charged wlth governan. 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 statèments, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations IiTregularitiesl is from the events and tran5action5 reflerted in the financial statements, the les5 likelv the inherently limited procedures required by auditing standards would identify it. In addltion, as with any audlt. there remained a higher risk of non41etection of irregularities. as these may invofve collusion, forgery. intentional omissions, misrepresentations. or the overrlde of internal controls. We are not responsible for preventing non-compliance and cannot be experted to detect non-compliance with all laws and regulations. Use of our report Thls report Is made solely to the charlS trustees, as a body, in accordance with Part 4 of the Charities (Attounts and Reports) RulatIonS 21)08. Our audit work has been undertaken so that we mlght state to the harit5 trustees those matters we arè required to state to them in an auditorfs 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 charlS trustees as a body, for OUT audit work, for this report. or for the opinions we have formed. G[LkLlP Crowe U.K. LLP Statutory Auditor London Date: 23 February 2023 Crowe U.K. LLP is eligible for appointment a5 auditur of the charlty by virtue of its eli8ibility for appointment as auditor of a company under sertion 1212 of the Companies Act 2006. Page 7
THE MARK BENEVOLENT FUND STATEMENT OF FINANaAL AcfiviTIES FOR THE YEAR ENDED 31 AUGUST 2022 2022 2021 Notes INCOME AND ENt)OWMENTS FROM: Donations and legaciès Investments: Investment income Interest receivable Other". Rent receivable, 86 St. lame5'5 Street, London SWI 1.511,581 1,224,870 537.541 56 503,998 1,265 Total 2,049,178 1,730,133 EXPENDuRE ON: Ralsln8 funds Investment management fees Charitable artlvltle5 Grants & Support Costs Benevolent jewe15 distribution 99313 98.516 1,284,561 60,345 2.532,970 44,855 Tt)tal IA44.719 2.676,341 OPERATING ILOSSI I SURPLUS 604,459 (946.208) Net gains I1105sesl on investment assets {2.953.613) 3.534,646 NET INCOME I (EXPENDITURE) {2.349,1541 2,588,438 NET MOVEMENT IN FUNDS 12,349,154) 2.588.438 FUND BALANCES As at I September 2021 23,500.678 20,912,240 FUND BALA14CES CARRIED FORWARD 21.151.524 23.5LKI,678 All of the above are represented by contlnuing operatlons. There are no recognised Bains and losses other than those shown above. The notes on pages 11 to 16 fomi prt of these financlal statemerrtS. Page 8
THE MARK BENEVOLENT FUND BALANCE SHEET 31 AUGUST 2022 2022 2021 Notes FIXED ASSETS Tangible fixed assets Irwestments I.0.400 19.397,360 1,020,800 22,150,786 2OA09,760 23,171.586 aJRRENT ASSETS Debtors Cash at bank 212,087 752,822 152,250 317,627 964.909 469,877 CURRENT LIABILMES Creditor5 223.14S 140.785 223.145 140.785 NCuRRENT ASSErs 741.764 329.092 TOTALASSEfs LESS CURRENT LIABIUTIES 21,151.524 23.500.678 REPRESENTED BY FUNDS Unrestrided Deslgnated fixed assets fund General fund 1,012,400 ZO,139,124 1,020,800 22.479,878 21.151.524 23,500.678 The financial statements were approved by the Trvstees and authorised for issue on 30 January 2023 and signed on their behalf by.. ,L£ ident of the Mark Benevolent Fund The notes on pages 11 to 16 forni part ofthese flnandal ement Page 9
THE MARK BENEVOLENT FUND CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2022 2022 2021 Notes Cash flows from operatin8 a¢tivities: Net cash usÈd by operating artivities 97.785 11,440,607) Cash flows from Investlng actlvltles: Investment income 537.597 505,263 1,879.049 2,622,412 12P79,236) (2.423,895) prOed from sale of investments Purchase of investments Net cash provided by imiesting activilies 703 780 Change in ¢ash and Cash equivalents In the year 435,195 {736.827J Cash and cash equlvalents brought forward 17 627 Cash and cash equlvalents carrfed forward Recondllatlon of net lexpenditureifincome to net ¢ash flow from operatlng artfvltSes 2022 2021 Net lexpenditurel/income for the year las per Statement of financial activitiès) {2349.1541 2.588,438 Adjustment lor: Investment Income Loss/lBainl on investments Depreclatlon of tangibles fixed assets Ilncreasel/decrease In debtors Increaselldecreasel in creditors 1537,5971 953.613 1505.2631 f3,534,646J 159,8371 82 {72,832J Net cash used by operatlng artlvltles Analysb of cash and cash equlvalems 2022 2021 Cash in hand 752,822 317,627 Total Page 10
THE MARK BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 CHARITY INFORMAnON The Charity is a Public Benefit Entity registered as an unlncorporated charity registered in England and Wales (registration no. 2076101 and operates from its registered office Mark Masons, Hall, 86 St. James's Street, London. SWIA IPL. ACCOUNTING POUCIES Basss of AccountSng The financial statements have been prepared In accordance wlth the Charitles SORP IFRS1021 applicablè to charities preparin8 their accounts in accordan with the Financlal Reporting Standard applicable in the UK and Republlc of Ireland and the Charities Act 2011 and UK Generally Accepted Practlce. The financial statements have been prepared to glve a "true and fairt view and have departed from the Charities IAccounls and Reports) Regulations 2(X)8 only to the extent required to provlde a "true and fairf view. This departure has involved followin@Accountlngand Reporting by Charilies preparing their account5 in accordance with the Finanrial ReportlnB Standard applicable in the UK and Republi of Ireland IFR51021 issued on 16 July 2014 rather than the Accounting and Reporting by Charities.. Statement of Recommended Practice effertlve from l April 2005 which has since been withdrawn. Donatlons Donations received for a specific year and deposited wlth The Mark Benevolent Fund are Included in the Statement of Financial Artivities in thè year of recelpt. Other donations, where the resolution to make a glft to The Mark Benevolent Fund is uncertaln. are included tn the Statetnent of Financial Activities on a receipts basis. Gifts Gifts received In the year are Included In the Statement of Financial Aciivitie5 at their rnarket value on the date received. {dl Arnortlsatlon of Leasehold Property In accordance with the terms agreed with the Charity Commissioners. The Mark Benevolent Fund Invested £1,200,000 in the acquisitlon and converslon of 86 St. James's Street. London SWI. The oiiginal lease was for 99 years from 5 January 1979. This has been Subsequently rene8otlated and nèw 125 year lease from April 2018 agreed. This has resulted in an increase in the charge for the amortisation of the lease from £4,2L%) per annum to £8.4 with effect from September 2019. Thls will continue lo be borne by the General Fund of The Grand Lodge of Mark Mastèr Masons. The residual economic Ilfe of leasehold property is reviewed on a re8ular basis. The Trustees have determined the p051tion with re8ar¢J to property depreciation as stated above. The Trustees are also of the view that the carrying value of thls asset is not Smpaired having assessed the service delivery and will undertake future reviews in accordance wlth FRS 102. le) Investments Flxed asset Investments are revalued to market value at the balance sheet date and the surplus or deficit of thi5 revaluation represents unreallsed Bains or1055es. The diffeiences between the carrying value lor cost if acquired in the yearl and the proceeds of investments disposed of represent reallsed Investment gains or105se5. Net reallsed and unrealised gains or losses are shown as a Combined figure In the Statement of Flnanclal Actlvities. Page 11
THE MARK 8ENEVOLENT FUND NOTES TO ThE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 ACCOUNTING POUCIES {CONTINUEDI lfj Expendrture Expenditure 15 accounted for under the accruals concept. The irrecoverable elemenl of VAT is included with the item of eypen5e to which it relates. Staff are employed by Thè Grand Lodge of Mark Master Masons 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. {hl Governance Costs Governance costs relate to the statutory running of the charity- Flnancial Instruments The chaTlty has financial asset5 and financial Ibabilitles of a kind that quallfy as basic financlal instruments. Basic financial instruments are Inltlally recognlsed at tTan5actlon value and subsequentlv measured at amortlsed ¢0st using the effertive lrtterest method. Financial assets hèld at amortised cost comprise cash and bank and in hand, together with trade debtors, attrued Interest and r)ther debtors. Financial liabilities held at amortlsed cost comprise grants payable and accruals. Investments, includin8 bonds held a5 part of an investment portfolio are held at fair value at the Balan Sheet date, with gains and losses beln8 reco8nlsed wlthin income and expenditure. Critical accountlngludgements and key sources of estlmatlon un¢ertalntv In the application of the charity's accounting prtrlicies, Trustees a required to rnake ludgements, estimates, assumptions aboutthe carryingvalues of assets and liabilities that are not reaijily apparent from othersource5. The estimate5 and undÈrlyin8 assumptions are based on histori¢al experience and other factors that are considered to be relevant. Actual results may differ from these estlmates. Theestimates and underlyinga55umptions are reviewed on an on-going basis. Revi5i0nsto accountin8 estimate5 are recognised in the period in which the estimate is revised if the revision affects only that period, or in the perio(l of the revlsion and future periods If the revision affects the current and future periods. In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affeding assets and liabilities at the balance sheet date arè Ilkely to result in a material adjustment to their carrying amounts in the next financial year. Page 12
THE MARK BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 ACCOUNTING POLICIES IcoiifiNUEDI Ikl Goin8 ¢oncem The Mark Benevolent Fund is managed by the Board of Trustees which are all honorary positions therefore there are no direct financial costs in the management of the fund. The Charitie5 Manager nd theflnantial control administration duties are provided by employees of the Grand Lod8e of Mark M35tei Masons. Our planning processes take into consideration the current economic dimate including the Covid-19 pandemic. and its ongoing impart on the various sources of income and planned donatlons. The fund raising is mainly provided by Mark Masons who have, by rotation of each provlnce Sn the England and Wales, Mark Benevolent Festivals which are usually the result of special events over the previous flve to seven years. It is 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 norrnally exceed the divldend in¢tsme from the investments. Trustees consider that there are sufficient reserves held at 31 August 2022 to manage any foreseeable downturn in the UK economy. The Tru5tee5 wn5ider that there 15 a rea50nable expectation that the Charity has adequate reSoUrS to continue in operational existence for the foreseeable future and, for this rea50n, the Trustees continue to adopt the golng con¢em basls in preparlng the financial statements. WPPORT COSTS 2022 2021 Admlnlstratlon fee Printing and stationery General expenses Rent paid Bank charges and Insuran costs Governance cost5 (note 51 2W.000 2.000 22,121 1>5,000 131 20.940 378,192 11.825 135.000 18 19.800 366,643 All support ¢osts are applicable to 8rant maklng whlch is the charitys only charitable activity and are Included with the grant makrng costs on the face of the Statement of Financial Activities. Page 13
THE MARK BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 2022 2021 Grants to other charities Major capital grant to support hospices In England & Wales Grants to individuals 876,731 3,000 26,638 906,369 378,192 1,284,561 832,958 1,286,000 47,369 2,166.327 366.643 2,532,970 Support costs (note 31 The grants to other charities in the year were: Maidstone East District Scout Council Sunbury & Walton Sea Cadets The Freedom Centre Kingfisher Medway Trust Kingfisher Medway Trust RNU Northumberland Whirlow Hall Farm Trust East & North Herts Hospitals Trust Stageright 350 Squadron ATC Spitalfields Crypt Trust Sutton Women's Centre Addenbrooke'5 Charitable Trust Clèveland Mountain Rescue Team Derlan Hospice Chlldren's Hospl Bee Unique Inspectorate of Romania (Ukrainel The Christie Charitv Inspectorate of Rornania (Ukrainel Strongbones Children'5 CharitableTrust Ambulante Aid Icheshirel Cornwall Scouts Inspectorate of Romania Iukrainèl Inspectorate of Romania Iukralnel City of Goodness Orphanage Appeal Icheshirel Youth Adventure Trust Inspectorate of Romanla Iukralnel Merlin MS Centre Blrmlngham Women's & Chlldren's Hospital Inspectorate of Romania IUkraSnel Millom Nètwork Cèntre East Yorkshire Foodbank Blood Bikes Manchester 13,860 31,000 54,762 28,199 27,437 45.000 20,000 2,527 12BOO I800 9,970 4,327 ioojxx) 2461 2875 26,669 2S.(MIO 28.795 25XWXI 5.750 io,ooo 25,000 25.000 iO,IHM) 25,IMI 7,080 loo,000 25.IXIO 46.090 38.118 18.801 876,731 832,958 The Major Capital Grant of £3,OL{202I-. £1,286,000) was distrlbuted through Mark Lodges in England & Wales who each nominated a local hospi to receive a £l.ocKs donation wholly funded by the Mark Benevolent Fund. Pa8e 14
THE MARK 8ENEVOLENT FUND NOTES TO ThE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 GOVERNANCE COSTS 2022 2021 Auditorfs remuneration 19.800 No Trusteè reiVed any remuneration or reimbursement of expenses durin8 the cuent or previous year. FIXED ASSETS Leasehold property Cost At 31 August 2022 and I September 2021 2022 421NP.000 Depreciation At I September 2021 Charge for the year 179.200 8,400 At 31 August 2022 187,600 Net 8ookValue At 31 Au¥ust 2022 012,400 At31 August2021 1,020,800 Page 15
THE MARK BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS (CONnNUED) FOR THE YEAR ENDED 31 AUGUST 2022 INVESTMENTS 2022 2021 Market value at I September 2021 Less .' Disposal prOedS Add Acquisition5 at cost Net realised and unrealise(J galns 22.150.786 11.879.049) 2,079.236 12,953,613) 18,814,657 12.622.4121 2,423,895 3,534.646 Market value at 31 August 2022 19,397360 22,150,786 Hlstorlc cost 13,553,587 13,716,021 All investments are listed on a reco8nised stock exchange and managed in the UK by J M Hnn & Co Limited. The investments at the year-end comprised.. Fixed interest Equities Other (Property, Alternative Assets & Emerging Economies) 1.149.148 18,219,864 2,176,366 15.553,816 4,420,604 22,150,786 19.397,360 Unreallsed gainslllossesl amountlng to £2,149,71712021: £4,740,7091 are based on a valuation at the year*nd which is unlikely to equate to the actual gains and losses which will arise on the subsequent realisation of those Investments. TAXATION The Mark Benevolent Fund is a re8iStered charity and is able to take advantage of the exemptions from tax for charities on its incorne and investrnent gains. RELATED PARTYTRANSACTIONS The Fund is admlnlstered by The Grand Lodgè of Mark Master Masons IGLMMMI. The Fund paid a management fee of £2(M),O(X) in thè year12021.. £200,000) to GLMMM to cover staff and administration costs and charged rent of£nil12020= £nlll to GLMMM. Due to changes In the terms of the Lease, GLMMM now pays the rent direct to Crown Propertie5. Included in Donations and Le8acies is an amount of £135,fKrf)12021.. £135.OWI In respect of the rent paid directly on behalf of the Fund. A corresponding expense is included wSthin support ¢0Sts. At the yearend GLMMM owed MBF £45,06512021'. GLMMM owed MBF £29.3101 in respect of these transartlons. Pa8e 16