Charity Registration Number: 207610 THE MARK BENEVOLENT FUND FINANCIAL sTATEmEr5 31 AUGUST 2023
THE MARK BENEVOLENT FUND TRUSTEES, REPORT FOR THE YEAR ENDED 31 AUGUST 2023 The Trustees present thelr report and thè financlal statements for the year Ènded 31 August 2023. LEGAL AND ADMINISTRATIVE DETAILS The charity is The Grand Lodge of Mark Master Masons. Fund of Benevolence and is registered at the Charlty Commission under registration number 207610. The charity operates as The Mark Benevolent Fund. The charity's address is 86 St lame5's Street, London SWIA IPL. TRUSTEES The Trustees of The Mark Benevolent Fund who served during the year, and to the date of signing this report, wère-. D F Ashbolt (Retired 13161231 J Bell (Retired 13161231 l N Clark W A Divall K Hicks A S M¢Laren R J Olliver TC Pakrashi D Powell R F Richardson J Ste88le5 D Thomas IAppolnted 13161231 A l Torrance IApptsinted 13161231 MJ LWhelan,JP Newly appolnted Trustèès rètèivè a briefingfrom the President and Honorary Secretary, an induction pack from the Charitie5 Manager and attend training days as necessary. ORGANISATION The Board of Trustees deleBate the day-to-day running of the charity to the management of ihe Grand Lodge of Mark Master Masons. There are two sub<ommittees to the Board of Trustees.. il The Petitions Committee provide5 relief to poor and di5tre55ed Freema50n5. their wive5, widows ar children. Individual grants of up to £15,000 may be made for help with general living expense5 for a 12- rnonth period. relief of debt If appropriate and one-off Items such as roof repalrs and heatinE System replacement. Committee members carèfully consider èach appllcation circulated by email and independently report back to the Petitions Committee chairrnan who notifie5 the Committee's decision to the Charities Manager. The members of the Committee are J Steggles (Chairman), B Divall, K Hicks, D Powell and D Thomas. The fvll Board of Trustees meets quarterly when all petitions for relief are ratlfied. 21 The Worthy Causes Committee makes grants to other registered charities. Applications for a5515tance are rece¢ved from charlties. and from provlnces on behalf of ¢harltles, bythe CharStles Manager. In cases where the charity is seeking le55 than £50,(, the application 15 circulated by ernail to member5 of the Worthy Causes Committee by the Charitie5 Manager. They carefully consider the application and send their views to the Chairman of the Worthy Causes Committee who notifies the Committee's decision to the Charitie5 Manager, so that the charlty can be informed. The members of the Worthy Causes Commlttee are I Clark Ichairmanl, A McLaren, R Oliver, T Pakrashl and R Rlchardson. In cases where the charlty Is seeking £50,000 or more, the application is circulated by emall to all members of the Board of Trustees for consideration. Each Trustee then sends his views to the President of the Fund who notlfles the decision to the Charitles Manager. The full Board of Trustees meets quarterly when all applications are ratified. Page 1
THE f+•lARK BENEVOLENT FUND TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 PRINCIPAL ADVISERS BANKERS Clydesdale Bank plc (Trading as Virgin Moneyl 7 Gold Street Northampton NNI IEN FUND MANAGERS JMFinn&CoLtd 4 Coleman Street London EC2R STA AUDITOR Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW C0145llTWION AND OBJEcrs The Mark Benevolent Fund is governed by both staiute (Charities Artl and the Constltutions and Regulations for the Governrnent of the Order of Mark Master Masons dated 1955 and subsequent amendments. The oblects of the charity are defined as follows. The Trustees shall hold the Fund of Benevolence and it5 income upon trust to apply them subject to the provi5ion5 of the Regulations for.. i) such exclusively charitable purpose5 as may be determined from time to time by the Trustees, who in reaching that determination shall seek and consider the views of the Grand Lodge. and 21 the relief of need. hardship and di5tre55 among Mark Master Masons, thèir families or other dependant, and/or amongst retired employees of The Grand Lodge in such manner as they shall from tlme to time determine. The Mark Benevolent Fund is supported by contributions from Brethren, their Ladies, Lodges and Province5 and these may take the form of donations. covenants. legacies or bequests. The Trustees confirm that thèy have complied with thè duty in sÈttion 17 of the Charities Act 2011 to have due regard to the guidance issued by the Charity Commission on public benefit. ACTIVITIES The total grants made in the year under the trustees, grant-making policy Isee page 31 amounted to £1,137.497 12022.. £906.3691 of which £nll was paid to hosplces12022.' £3.CQOI. £1.092,42712022: £876,731) was paid to 34 charities, and £45.070 was paid to Mark Master Masons and other dependants in need. The Trustees have continued to revlew all petitlons for rellef and all appllcatlonsfrom registered charities. Grants were made from The Mark BenOlent Fund to Mark Master Masons, thelr families or other dependants and for specific purposes to other registered charltles. FUNDRAISING The majority of the charity's income is from the members of the Grand Lodge of Mark Master Masons. The Mark Benevolent Fund has not engaged with thlrd parties to raise funds and any direct approach to members of the public for funding has been limlted. No complalnts were recelved In relation to the Mark Benevolent Fund's fvndraising activities. Page 2
THE MARK BENEVOLENT FUND TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 GRATr MAKING POLICY Grants in response to petitions for rellef are made to Mark Master Masons, their families or other dependents. andlor retired employees of the Grand Lodge, provided that such grants are for the relief of need. grants awarded are 5ubjert to financial mèans testing and approval by the Petitions Committee. Granis are also made for charitable purposes other than for the rellef of need. All such grants awarded are subject to approval by the members of the Worthy Causes Committèe or the fvll Board of Trustees, and are reported to Grand Lodge. RESERVES POUCY The total reserves of the Fund amounted to £19.60 rnillion 12022: £21.20 million), comprlsing unrestritted reserves of £18.56 million12022.. £20.14 million) and designated funds of £1.00 million12022.. £1.01 million). rhe free reserves of the Fund total £18.56 million at the year-end12022.' £20.14 millionl. The majority of grants are paid to non masonic charities with the balance paid in the main to the elderly, these tske the form of elther emergency grants or annuity grants which may have to be rnaintsined for, on average, between 12 and 15 years. It is the pollcy of the Trustees to ensure that the fund has adequate reserves to pay these grants each year. Funds are also retained as it is the practice to make major capltal grants from tlme to time,. investments and Income must therefore be rnaintained to further thls poll¢v. GOING CONCERN The Mark Benevolent Fund is govemed by a board of iwelve Trustees. whlth are all honorary positions therefore thèrè are no direct financial cost5 in the managemènt of the Fund. The Charities Manager role and the finanaal ontrol administration duties are provided by employees of the Gland Lodge of Mark Master Masons. Our planning processes take into consideration the current economic climate and Its 0Tr8oin8 impart on the various sour$ of income and planned donallons. Fundraising is mainly provided by Mark Master Masons who host. by rotation of each province in England and Wales, Mark Benevolent Fund Annual Festivals. The Annual Festlval Result reflects the total funds raised over the course of ihe festival period of around ten years. It Is èxpèctÈd that this approach will continue for the foreseeable future. Trusiees consiilef that there are sufficient reserves held at 31 August 2023 to respond to any foreseeable downturn in thè UK econtsmy. The Trusteès tonsidèr that there is a reasonable expectation that the charity has adequate resources to continue In operational exlstence for the foreseeable future and, for this reason, the Trustees continue to adopt the goin8 concern basis in preparing the financial 5tstements. INVESTMENT POWERS Investment powers are set out and operated withln the provisions of the Trustee Act 2)0. The investmènts are managed by the Investment Committee, appointed by the Trustees. which is advised by J M Finn & Co Limited. INVESTME POUCY AND PERFORMANCE The investment portfolio is managed by JM Finn & Co Lid under thelr Dlscretlonary Portfollo Management Service. Our Inve51ment Objertive 15 to seek a combined return from income and capital growth. A medium risk portfolio wlth no speclfied mlnirnum of low risk investments has been selected. There are currently no investment restrirtionslspecial in5trurtion5 given to JM Finn & Co Ltd. The aim in the trust deed 15 to quickly provide 8rants in relief of need for Mark Master Mason5 and their dependantS, to support other registered charities and from time to time to make major capital 8rants to worthy causes. The sources of income forthe Fund include donatlons from members, funds raised from annual festivals, gSfts left Sn wlllsllegacies and any Investment Income Ilndudin8 capital growth). The Investment Committee, appolnted by the Trustees. reviews investment portfollo funds on a regular basls. Page 3
THE MARK BENVIOLENT FUND TRUSTEES, REPORT ICONTINUEDI Foft THE YEAR ENDED 31 AUGUST 2023 RISK POLICY The Trustee5 have reviewed their procedures to identify and examine the major strategic. business and operational risk5 thatthe charity faces. The necessary system5 are established to enable reportsto be produced to ensure that action is taken to manage the effects of the identified risks. Below a sumrnary of the major risks faced and policies to mitigatè these. R55k Loss Df Key Staff Disaster recovery Steps to MlSate rfsk Succession planning, document systems. agree notice periods and handovers Agree IT recovery plan, irnplement data back-upi review in5UTanie. create disaster recovery plan Review & agree policy. obtain advice & management, implement reserves policy, regular performance rnonitorln8 Communlcate wlth supporters & beneflclarles, good quality reporting of activities & financial s((uation, supportfor worthy causes Review & agree compliances procedures, allocatlon of staff responsibilities Imiestmeni Policies Publlc Perception Regulatory reporting TRUSTEES. RESPON5181LITIES The Trustees are responsible fof preparing the Trustees. Report and the financial statements in accordance w¢th applicable law and regulations. Charity law requires the Trustees to prepare financial statements for each fi'nzncial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdorn Accounting standards) and applicable law. Under charity law the Trustees must not approve the financlal 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 incorninQoutgoing resources for that period. In preparing these financial statements, the Trustees are required to.. select suitable accountin8 policies and then apply them consistentlv- observe the methods and principles in the Charitie5 SORP: make jud8ments and estimates that are ie850nable and prudent,. prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue to operate. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with aSonable accuracy at any time the financial posr(ion of the charity and enable them to ensure that the financlal statements comply wlth the Charltles Act 2011, the Charltv (Accounts and Reports) Regulatlons 2008, the ConstkutSons and Regulations of the Gran(t Lod8e of Mark Master Masons and the provisions ol the charity's trust deed. They are also responsible for safeguarding the assets of the charity and lor takin8 reasonable steps for the prevention and detection of fraud and other irregulaflties. AUDITOR Crowe U.K. LLP has indicated its willingness to be reappointed as statutory auditor. Approved by the Trustees on 6 February 2024 and sl8ned on thelr behalf by: ald l. Torrance President of the Mark Benevolent Fund Page 4
Indepèndent Aydltorfs Reportto theTrustees of the Mark Benevolent Fund Opinion We have audited the financial statements of the Mark Benevolent Fund for the year ended 31 Au8USt 2023 which comprise Statement of Financial Artivitie5, the Balance Sheet, the Cash Flow Statement and notes to the financial statements. including significant accounting policies. The financlal reporting framework that has been applied in their pièparation is applicable law and United Kin8dom Accounting Standards. including Financi31 Reporting Standard 102 The Financlal Reporting Standard applicable the UK and Republic of Ireland Iunited Klngdom Generally Accepted Accounting Practice). In our opinion the financial ststements.. give a true and fair view of the state of ihe charltys affairs as at 31 Au8USt 2023 and of its incoming resources and application of resources, including its income and expendlture fof the year then ended; have been properly prepared in accordance wlth Unlted Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Charitiès Act 2011. Basls for opSnlon We conducted our audit in accordance with International Standards on Audlting IUKI IISAS IUKII and applicable law. Our responslbilities under those standards are further described in the Audltorfs responsibilities for the audit of the financial statements section of our report. We are independent of the charlty In accordance with the ethical requirement5 that are relevant to our audlt of the financial statements in thè UK, including the FRCS Ethical Standard, and we have fulfilled our other ethi¢al responslbllitles Sn accordance with these requirements. We believe that the audit evidence we have obtained is sufficlent and appropriate to provide a basis for our opinion. Conclusions relating to 80in8 toncèrn In auditing the financial statements. we have concluded that the trustees, use of the going conorn basis of accountinB 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 evènts or conditions that, individually or collectively, may cast significant doubt on the charlty's ablllty to continue as a golng concern for a period of at least twelve months from when the financial statements are aLbthorised for issue. Our responsiblllties and the responsibilities of the trustees with respect to going concern are described in the felevant sections of this report. Other Informatlon The trustees are responsible for the other Information colltaine(J within the annual report. The other information comprlses the Information incltsded 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 information and. in doing so, consider whether the other information is materlally Inconslstent wSth the flnancial ststements or our knowledge obtained In the audit or otherwise appears to be materially misstated. If we identlfy such material inconsistencies or apparent material mlsstatements, we are required to determine whether thi5 give5 rise to a material misstatement in the financial statements themselves. If. based on the work we have perfoTmed, we conclLtde that there is a material mlsstatement of thls other Informatlon. we are required to report that fart. We have nothlng to report In thls regard. Page 5
Matters on whl¢h we are required to report by ePtion We have nothing to report in respect of the following matters in relation to which the Charities IAccounts and Reportsl Regulations 2008 require us to report to you if, in our opinion.. the information 8iven in the financial statements is inconsistent in any material respect with the trustee5' report- or sufficient accounting records have not been kept., or the flnancial statement5 are not in agreement with the accounting record5 and returns; or we have not receivèd all the information and explanations we require for our audit Re5ponsibllitles of trustL As explained more fully in the trustees, responsibilities statefnenl sel out on page 4. the trustees are 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 trustees detèrmine is nècessary to enable the pfeparation of financial statements that are free from material mlsstatement, whether due to fraud or error. In preparing the financial statements, the trustees are resn$1blè for a%sessin8 the charitvs ability to continue as a going concern, disclosirbg, as applicable, matter5 related to going concern and using the going concern basis of accounting unle55 the trustees either intend to liquidate the charlty or to cease operations, or have no realistic alternative but to do 50. Auditorfs responslbllltles for the audlt of the financlal st*ements We have been appointed as auditor under section 144 of the Charitles Act 2011 and report In accordance with the Act and relevant regulations made or having effert thereunder. Our oblectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material rni55tatement. whether due to fraud or error. and to issue an auditorfs ièptrrt that includes our opinion. Reasonable assurance is a high level of assurance. but is not a guarantee that an audlt condurted in accordance with ISAS IUKI will always detect a material ffli55tatemeTrt when it exists. Mi55tatements can arise from fraud or error and are considered material if, individualty or in the aggregate, they could reasonably be expected to influence the etonomic decisions of users taken on the basis of these financial statements. Irregularities. including fraud, arè Instsn5 of non-complian with laws and regulations. We design procedures in line with our responsibilities. outllned above. to detect materlal mlsstatements In respect of Irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, Includlng fraud is detailed below.. A further description of our responsibilities for the audit of the financial statements is located on the Financial ReportinB Council's websitè at.. www.frLor auditorsres onsibilities. This description forms part of our auditorf5 reporL Extent to whith the audit was consldered capable of detectSng irre8ularities, indudin8 fraud Irregularlties, includlng fraud, are instance5 of non<ompliance with laws and regulations. We identified and assessed the risks of material mi5Statement of the financial statements from irregularities. whether due to fraud or error, and discussed these between our audit tearr members. We then designed and performed audit procedures responslve to those rlsks, inclu¢Jing obtsinlng audit eVIden sufficient and appropriate to provide a basls for our opinion. Page 6
We obtained an understsnding 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 amount5 and dlsdosures In the financial staternents. The laws and regulations we considered in this context were the Charitie5 Act 2011 together with the Charities SORP IFRS 1021. We assessed the required compllante with these law5 and regulations as part of our audit procedures on the related financial Statement items. In addition, we considered provisions of other law5 and re8ulations that do not have a direct effect on the financial Statements but compliance with which might be fundamental to the charlS and the group's ability to operate orto avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity and thegroup for fraud. The laws and regulations we considered in this contextforthe UK operatlons included General Data Protection Regulation IGDPRI. Auditing standards limit the required audit procedures to identify non-compliance with these law5 and re8ulation5 to enquiry of the Trustees and other management and in5pertlon of regulatory and legal correspondence, if anv. We Sdentifled the 8reatest 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 abouttheir own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estlmates for blases, sample testing ol income, reviewin8 regulatory correspondence. and reading mlnutes 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 dètèctèd some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with audltlnB Standards. For example. the further removed non<ompliance with laws and regulations lirreBularitiesl is from the events and transactions refièued in the financial staternents, the le&5 likely the inherently Ilmlted procedures requlred by auditingstandards would identify it. In addition, as wlth any audit. there remained a highèr risk of non-detection of irregularities, as these may involve collusion. forgery, intentlonal omi55ion5, misrepresentations, or the override of internal controls. We are not responsible for preventinÈ non-cornpliance and cannot be expected to detect non-compliance wlth all13ws and regulations. Use of our repwt Thi5 report is made solely to the charity's trustees, as a btsdy, in a¢cordanee with Part 4 of the Charities (Accounts and Aeportsl Re8ulation5 2(. Our audit work has been undertaken so that we might state to the charitys trusteès those matters we are required to state to them in an auditorfs report and for no other purpose. To the fullest extent permitted by law, we do not a¢cept or assume responslbillty to anyone other than the charity and the charitvs trustees as a body, for our audit work, for this report, or for the opinions we have formed. Govl U.K. IIP Crowe u. LLP Statutory Auditor London Date: 28.03.2024 Crowe U.K. LLP is eligible for appointment as avditor of the charlty by virtue of its eligibility for appointment a5 auditor of a company under section 1212 of the Companies Ad 2006. Page 7
ThE MARK BENEVOLENT FUND STATEMENT OF FINANCIAL ACtiwnES FOR THE YEAR ENDED 31 AUGUST 2023 2023 2022 Notes INCOME AND ENDOWMENTS FROM: Donations and legacies Investments,. Invè5tfflent income Interest recelvable Other: Rent receivable, 86 St. James's Street, London SWI 1,215,746 1,511,581 549,532 11734 537.541 56 Total 1.778.012 2,049,178 EXPENDITURE ON: Ralsln8 funds Inve5trnent management fees Charitable actlvitles Grant5 & Support Costs Benevolent Jewels distribution 87,767 99,813 I16,4100 64.552 1,284.561 60,345 Total 1,668,719 1.444.719 OPERATING ILOSSI I SURPLU5 109,293 604,459 Net galns I Ilosses) on investment as5etS 11,694.1401 (2,953,613J NET INCOME I IEXPENDrruREI I1.5847} 11349.154) NET MOVEMENT IN FUNDS 11.584A471 12,349,154) FUND BALANCES As at I September 2022 21,151.S24 23,SOO,678 FUND BALANCES CARRIED FORWARD I966.677 21151.524 All of the above are represented by continuing operations. There are no recognised gains and losses other than those shown above. The notes on pa8e5 11 ta 16 form part of these finandal statements. Page 8
THE MARK BENEVOLENT FUND BALANCE SHEET 31 AUGUST2023 2023 2022 Notes FIXED ASSETS Tangible fixed assets Investment5 1,012,400 19,397,360 17.610,840 18,614.840 20,409,760 CURRENT ASSETS Debtors Cash at bank 261,9% 982,067 212,087 752.822 1,244.063 CURRENT LIABILITtES Creditors 292,226 223.145 292,226 223,145 NET CURRENT ASSETS 95L837 741,764 TOTAL ASSEfs LESS CURRENT LIABILITIES 19,S66,677 21.151.524 REPRESENTED BY FUNDS Unrestrlrted Designated fixed assets fund General fund i.004.0 18.562,677 J,012.400 20,139,124 19.566,677 21,151,524 The financial staternents were approved by the Trustee5 and authorised for issue on 6 February 2024 and slgned on their behalf bv.. hlbald l. Torran Presldent of the Mark 8enevolent Fund The notes on page$ 11 to 161omi part of theseflnanclal Statements. Page 9
THE MARK BENEVOLEMf FUND CASH FLOW STATEMENT FOR ThE YEAR ENDED 31 AUGUST 2023 2023 2022 Notes Cash flows from operatin8 activities: Net cash used by operating attivities 1412,6671 97, 785 Cash flows from investin8 a¢tNities: Investment Income Proceed from sale of Investments Purchase of Investments 549,532 2,992,695 I2,9,315) 537,597 1.879,049 12,079,236? Net cash provided by Invest5ng attlyftles Change In cash and cash equivalents in the year 229.245 435.195 Cash and cash equivalents brought forward 752 822 317627 Cash and cash equlvalents urnied forward Recontlllatlon of net lexpendltureifincome to net Cash flow from operatin8 atlivities 2023 2022 Net lexpenditurellincome for the year las per Statemènt of financial activities) IL584W71 12,349,254J Adlustment for: Investment income Less/lgainl on investments Depreciation of tangible5 fixed assets IlntrÈasel/decrease in debtors Increaselldecreasel in creditors IY19.5321 1.694.140 1537.5971 2,953,613 8,4( (59,837) 149.9091 Net cash used byiyfatlng actlvltles 412 667 Analysls of cash and cash equlvalents 2023 2022 Cash in hand 982.067 752,822 Total Page 10
ThE MARK BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 CHARITY INFORMATION The Charity is a Public Benefit Entity registered as an unincorporated charity re815terèd in England and Wales Iregistration no. 2076101 and operate5 from Its reglstered Offi Mark Masons, Hall, 86 St. James's Street, London, SWIA IPL. ACCOUNTING POUCIES (al Basls of Accounting The financial statements have been prepare(I In accordance with the Charities SORP IFRS1021 applicable to charities preparing their accounts in accordance with the Financial Reporting Standard pplicable in the UK and Republic of Ireland and the Charities Act 2011 and UK Generally Accepted Practlce. The financlal statements have been prepared to give a "true and lalrf vlew and have departed from the Charities (Arcounts and Reports) Regulations 2008 only to thè extent required to provide a °true and fairt view. This departure has involved followingAccountin8 and Reporting by Charitie5 preparin8 thelr accounts in accordan wlth the Financial Reportin8 Standard applicable in the UK and Republi of Ireland IFRS1021 issued on 16 July 2014 rather than the Accountlng and Reporting by Ct)arities= Statèment of Recommended Practice effective from l Aprll 2005 whlch has since been withdrawn. (b) Donatlons Donations recelved for a speclfic year and deposlted with The Mark Benevolent Fund are included in the Statement of Flnanclal Activities in the year of receipt. Other donations. where the resolution to make a gift to The Mark Benevolent Fund is UnrtaIn, are Included in the Statement of Financial Artivities on a recelpts basis. Gffts Gifts received in the year are included in ihe siatement of Flnandal Activities at their market value on the date received. Idl Amortisatlon of Leasehold Property In accordance wlth the terms agreed with the Charity Commissioners, The Mark Benevolent Fund invested £1.200,000 in the acquisition and Conversion of 86 St. James'5 Street, London SWI. The original lease was for 99 years from S January 1979. Thls has been subsequently renegotiated and a new 125 year lease from April 2018 agreed. This has resulted in an increase in the charge for the amortisation of the lease from £4,2c per annum to £8,4W with effect from September 2019. Th15 will contlnue to be borne by the General Fund of The Grand Lodge of Mark Master Masons. The residual economic life of leasehold property Is reviewed on a regular basis. The Trustees have determined the position wlth regard to property depreciation as stated above. The Trust are also of the view that the carrying value of this asset is not lrnpairèd havlng assessed the service dellvery and will undertake future reviews in accordance with FRS 102. le) Investments Fixed asset investments ère revalued to market value at the balance sheet datè and the surplus or deficit of thls revaluation represents unreallsed galns or losses. The differences between the carryinB value lor cost if acquired in the year) and the ProedS of investments disposed of represent reali5ed investment galns or losses. Net reali5ed and unreali5ed 8ains or losses are shown as a combined ffigure In the Statement of Financial Activities. Page 11
THE MARK BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS (CONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2023 ACCOUNTING POUCIES ICONTINUEDI Expendlture Expenditure is accounted for underthe accruals conpt. The irrecoverable element of VAT is included wlth the item of expense to which it relates. Staff are employed by The Grand Lodge of Mark Master Masons and relevant staff costs are recharBed to The Mark Benevolent Fund as part of the administration fee. Investment Income Investment income is accounted for on an accruals ba51S. Ihl Governance Costs Governance costs late to the Statutory running of the ehartty. Financial Instruments The charity ha5 financial a55ets and financial Ilabilitles of a kind that qualffy as basic finandal instruments. Basic financial in5trument5 are initially reco8nised at transaction value and subsequently measured at amortised Cost usln8 the effectlve Snterest method. Financial asset5 held at amortised cost comprise cash and bank and in hand, together wlth trade debtors. accrued interest and other debtors. Flnanclal Ilabllities held at amortised cost comprise grants payable and accruals. Investments, Including bond5 held as part of an investment portfollo are held at fair value at the Balance Sheet date, with gains and losses being reco8nisÈd within Income and expenditure. u) Crltlcal accountlngjudgements and key sources of est5matlon uncertainty In the application of the charitl5 accounting policies, Trustees are requirèd to make judgements, estimates, assurnptions aboutthe carrying values of assets and liabillties that are not readily apparent from other50urce5. The estirnate5 and underlying as5umption5 are based on historical experience and other factors that are ¢onsidered to be relevant. Actual results may differ from these estimates. Theestimate5 and underlying assumption5 are reviewed on an on-80ing basis. Revlslons to accountlng estimates are reco8ni5ed in the period in which thè estimate Is revised if the revision affects only that period, or in the period of the revision and future periods If the revlslon affects the current and future periods. In the view of the Trustees, no assumptions concerningthe future or estimatlon UnrtaintY affetting a55ets and liabilities at the balaTr sheet date are likely to result in a material adjustment to their carrying arnounts in the next financial year. Page 12
THE hnARK BENEVOLENT FUND NOTESTO THE FINANCIALSTATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2023 ACCOUNTING POLICIES ICONTINUEDI Ik) Goin8 ¢on¢ern The Mark BenoInt Fund 15 8ovemÈd by a board oftwelve Trustees, which are all honorary positions therefore there are no dlrett financlal costs In the management of the Fund. The Charities Manager role and the financial conirol administration dutles are provided by employees of the Grand Lodge of Mark Master Masons. Our planning processe5 take into consideration the current economic climate and Its ongolng impact on the various sour5 of income and planned donations. Fundraising is mainly provided by Mark Master Masons who host, by rotation of each provin In England and Wale5, Mark Benevoleni Fund Annual Festivals. The Annual Festival Result reflects the total funds raised over the course of the festival period of around ten years. It is expected that this approach will continue for the foreseeable future. Trustees consider that there are sufficient reserves held at 31 August 2023 to respond to any foreseeable downturn in the UK economy. The Trustees consider that there is a reasonable expectation that the charity has adequate resource5 to continue in operational existence for the foreseeable future and, for this reason, the Trustees continue to adopt the going Conrn basis in preparing the financial StateMts. SUPPORT COSTS 2023 2022 Administration fee General expenses Rent paid Bank charges and insurance costs Governance costs (notè 51 2W,000 22,121 135.000 131 20.940 378,192 21210 135,000 223 21.470 378.903 All support costs are appllcable to grant maklng which Is the charlty's only charitable actlvlty and are included wlth the grant maklng costs on the face of the Ststement of Financial Actlties. Page 13
THE MARK BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2023 2023 2022 Grants to other charities Major capltal grant to support hospices in England & Wale5 Grant5 tts individuals I.Q92A27 876,731 45,070 1.137.497 378.903 1.516AOO 26,638 906,369 378,192 1,284,561 Support costs Inote 31 The grants to other charities in the year were.. District of Romania- Ukraine Refugee Appeal Tynemouth Volunteer Life Brigade St Peter & St James Hospice Ospreys Wheelchair Rugbv Lennox Children's Cancer Charlty The Rock Youth Project Autisrn 8edfordshire Haveri88 Inshore Rescue Team Disabillty Challengers Stape Silver Band Inspertorate of Rornania - Ukraine Refugee Appeal North of Tyne Mountain Rescue Team InspÈrtoratÈ of Romanla - Ukraine Refugee Appeal Channel Islands Jersey Funds The Bike Expeclence Sebastian's Action Trust East Midlands Immediate Care Scheme IEMICSI Inspettorate of Rornania- Ukraine Refugee Appèal Sweetpea Smallholdings Shelterbox- Turkey/Syila Earthquake The Meniere's Sodety Children with Cancer Fund (Polegatel Inspectoratè of Romania - Ukraine Refugee Appeal In5pertorate of Romania- Ukraine Refugee Appeal Newcastle Wheelchalr Rugby Club Incredible Design Company (formerly CHECI Mid SurrÈy Community Fridges In5pertorate of Romania- Ukralne Refugee Appeal 1st North Wallington Scciuts Normady Community Therapy Garden Nottingham Mencap Canterbury Umbrella Centre St John Ambulance Tunbridge Wells Sea Cadets Tee5 River Rescue style Acre London Wheelchalr Ru8by Club Britlsh Llver Trust Arrow Riding Centre for the Disabled 25.000 5S.7SI 16.102 33AOO 25,000 87,528 30.000 11.573 40.167 1.916 25.000 37.500 25,000 10,000 24,794 2.920 11.005 25,IXIO 1.871 so,0 2,387 36W7 25,LKIO 25,IMKJ 35,799 12,950 42,702 20,000 39,636 1,363 30.120 45,582 8000 80,276 57mO 36,0 30,967 15AII 1.092A27 876,731 Page 14
THE MARK BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 GOVERNANCE cosrs 2023 2022 Auditorfs remuneration 21,470 20.940 No Trustee received any remuneratlon or relmbursement of expenses during the current or previous vear. FIXED ASSETS Leasehold pioperty Cost At 31 August 2023 and I September 2022 2023 i?00,000 Depreciation At I September 2022 Charge for the year 187,600 At 31 Au8U5t 2023 196.000 Net Bookvalue At 31 August 2023 1004.000 At31 Auqust2022 1012.400 Page 15
THE MARK BENEVOLENT FUND NOTES TO ThE FINANCIAL STATEMENTS ICONMNUEDI FOR THE YEAR ENDED 31 AUGUST 2023 INVESTMENTS 2023 2022 Market value at I SeptembeT 2022 Less .' Disposal proceeds Add Acquisitions at cost Net reali5ed and unrealised gains 19A97,360 12.992.695) 2.WO.315 11,694,140) 22,150,786 (1.879,049) 2,079.236 (2,953,613) Market value at 31 August 2023 17.610.840 19.397.360 Historic cost 13.885,284 13,553,587 All investments are listed on a reco8nised stock exchange and mana8ed in the UK by J M Finn & Co Limlted. The investments at the year-end tt¢mprised.. Fixed interest Equities Other (property, Alternative A55ets & Emerw'ng Econgmie51 1,752,713 IS68,144 110.0171 17.610 1,149,148 18,219,864 28,348 19,397,360 Unrealised gains/l1055esl amounting to £31,50012022.' E2.149,7171 are based on a valuation at the year- entl which is unlikely to equate to the artual gains and losses which will arise on the subsequent realisatlon of those investments. TAXATION The Mark Benevolent Fund is a registered charity and is ablÈ to take advantage of the exemptions from tax for charities on its income and investment 8ains. RELATED PARTY TRANSACTIONS The Fund is administered by The Grand Lodge of Mark M35ter Masons IGLMMMI. The Fund paid a mana8ement fee of £2(j,000 in the year12022'. £200,0(M)I to GLMMM to cover staff and administration 05ts and charged rent of £nil12022: £nill to GLMMM. Due to changes in the terms of the Lease, GLMMM now pays the rent direci to Crown Properties. Included in Donations and Legacies 15 an amount of £135,C(JO12022- £135,CIJOI in respect of the rent paid directly on behalf of the Fund. A torresponding expense is included within 5UPPOrt costs. At the yearend GLMMM owed MBF £56.47712022: GLMMM owed MBF £45,065) in re5pert of these transartion5. Page 16