**Charity Registration Number: 207781** 

**THE ORDER OF THE SECRET MONITOR FUND OF BENEVOLENCE FINANCIAL STATEMENTS 31 AUGUST 2021** 



**THE ORDER OF THE SECRET MONITOR FUND OF BENEVOLENCE TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2021** 

The Trustees of The Order of the Secret Monitor Fund of Benevolence present their report and the financial statements for the year ended 31 August 2021. 

## **LEGAL AND ADMINISTRATIVE DETAILS** 

The Charity is The Order of The Secret Monitor Fund of Benevolence and is a registered charity under registration number 207781. The Charity’s address is 86 St James’s Street, London, SW1A 1PL. 

## **TRUSTEES** 

The Trustees of The Order of the Secret Monitor Fund of Benevolence, who served during the year and to the date of signing this report, are: 

G Flight 

Newly appointed Trustees receive an induction from the President and Grand Treasurer and attend training courses as necessary. 

## **ORGANISATION** 

The members of the Executive Committee are responsible for the administration of all aspects of The Order of the Secret Monitor Fund of Benevolence. 

The members of the Executive Committee of The Order of the Secret Monitor are: 

Ex officio, appointed by the Grand Supreme Ruler with the exception of the Grand Treasurer who is elected by The Order of the Secret Monitor 

His Hon I D G Alexander, QC C J Aspinell I M Campbell P R Crudge C M L Davies G L Gill J R Hodge D Littlewood H S Markham R A H Morrow J J Singleton J S Stevens I R Sullivan A C Sweeney A J Van der Burgh R A Williams 

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**THE ORDER OF THE SECRET MONITOR FUND OF BENEVOLENCE TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021** 

## **PRINCIPAL ADVISERS** 

## **BANKERS** 

## **AUDITOR** 

## **INVESTMENT MANAGERS** 

Clydesdale Bank plc Crowe U.K. LLP J M Finn & Co Ltd 146-158 Kensington High Street 55 Ludgate Hill 4 Coleman Street London London London W8 7RL EC4M 7JW EC2R 5TA 

## **CONSTITUTIONS AND OBJECTS** 

The Order of the Secret Monitor Fund of Benevolence is governed by both statute (Charities Act 2011) and the Constitutions and Regulations of The Order of the Secret Monitor dated 1 November 1960. 

The trustees are aware of the Charity Governance Code published in 2017 which sets out the principles and recommended practice for good governance within the sector. The Charity is reviewing its current governance arrangements against the principles within the code and will address any issues raised where required. 

The objects of the charity are the Relief of Needy Members of the Order and certain of their Dependants and the trustees achieve these by making payments of grants to the needy and making charitable grants for purposes specifically sanctioned by Grand Conclave. 

The  Order of the Secret Monitor Fund of Benevolence is supported by contributions from Brethren, Ladies, Conclaves and Provinces and these may take the form of either donations, covenants, legacies or bequests.  The Charity has not engaged with third parties to raise funds and there has been no direct approach to members of the public for funding.  A significant amount of the charity’s income is from investments.  No complaints were received in relation to our fundraising activities. 

The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the guidance issued by the Charity Commission on the strategy towards and the achievements of the Charity against its objectives. 

## **GRANT MAKING POLICY** 

The payments of grants are made to the needy and for such other charitable purposes as specifically sanctioned by Grand Conclave. 

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**THE ORDER OF THE SECRET MONITOR FUND OF BENEVOLENCE TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021** 

## **RESERVES POLICY** 

At 31 August 2021, the free reserves amounted to £1,042,511 ( _2020 –_ £892,473).  The Trustees believe that the level of reserves should provide a safety net for downturns in the market as well as building up for large donations in the future.  However, the Trustees are aware that the reserves are high and are continuing to review the level held. 

The 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 existence for the foreseeable future and, for this reason, the Trustees continue to adopt the going concern basis in preparing the financial statements. 

## **INVESTMENT POWERS** 

Investment powers are set out and operated within the provisions of the Trustee Act 2000.  The investments are managed by the Investment Committee, who are advised by J M Finn & Co Limited. 

## **INVESTMENT POLICY AND PERFORMANCE** 

The policy of the trust deed is to provide grants in relief of need for members and their dependants and, from time to time, to make grants to worthy causes.  The sources of income for the fund are donations from the members and any investment income (including capital gains). 

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. 

Changes are made to the investments held on the basis of seeking to maintain the existing funds and to increase them so far as possible.  The intention is to invest in securities, which are likely to increase in value (including providing increased dividends), rather than by any other criteria.  The value of the investments at the balance sheet date was £879,965. 

## **ACTIVITIES** 

The amount of grants paid in the year to 31 August 2021 amounted to £9,040 (2020: £12,215). 

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THE ORDER OF THE SECRET MONITOR
FUND OF BENEVOLENCE TRUSTEES. REPORT ICONTINUEDI
FOR THE YEAR ENDED 31 AUGUST 2021
TRUSTEES, RESPONSIBILITIES
The Trustees are responsible for preparing the Trustees, Report and the financial statements in
accordance with applicable law and regulations.
Charity law require5 the Trustees to prepare financial statements for each financial year in accordance
with United Kingdom Generally Accepte.d Accounting Practice (United Kingdom Accounting Standards)
and applicable law.
Under charity law the Trusteos must not approve the financial 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 incoming/outgoin8
resources for that period. In preparing these financial 5tatement5, the Trustees are required to..
select suitable accounting policie5 and then apply them con5i5tently;
observe the method5 and principles in the Charities SORP,.
make judgments and estimates that are reasonable and prudent,.
prepare the financial statements on the Eoing concern basis unless it 15 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 di5c105e with reasonable accuracy at any time the financial
position of the charity and enable them to ensure that the financial statements comply with the
Charities Act 2011. the Charity IAccounts and Reports) Regulations 2008 and the provisions of the
charity s constitution. They are also responsible for safeguarding the a55et5 of the tharity and hence
for taking reasonable steps for the prevention and detection of fraud and other irregularities.
AUDITOR
Crowe U.K. LLP has indicated its willingness to be reappointed as statutory auditof.
Approved by the Trustee5 on 23, March 2022 and signed on their behalf by
G Flight
Trustee
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## **Independent Auditor’s Report to the Trustees of the Order of the Secret Monitor Fund of Benevolence** 

## **Opinion** 

We have audited the financial statements of The Order of the Secret Monitor Fund of Benevolence for the year ended 31 August 2021 which comprise Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). 

In our opinion the financial statements: 

- give a true and fair view of the state of the charity’s affairs as at 31 August 2021 and of its incoming resources and application of resources, including its income and expenditure for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Charities Act 2011. 

## **Basis for opinion** 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. 

## **Other information** 

The trustees are responsible for the other information contained within the annual report. The other information comprises 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 information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

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**Matters on which we are required to report by exception** 

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion: 

- the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or 

- sufficient accounting records have not been kept; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- we have not received all the information and explanations we require for our audit 

## **Responsibilities of trustees** 

As explained more fully in the trustees’ responsibilities statement set 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 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 charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. 

## **Auditor’s responsibilities for the audit of the financial statements** 

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which 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 Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. 

##  **Extent to which the audit was considered capable of detecting irregularities, including fraud** 

Irregularities, including fraud, are instances 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 discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion. 

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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 and the group’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 non-compliance 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** 

**Date: 28 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. 

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## **THE ORDER OF THE SECRET MONITOR FUND OF BENEVOLENCE STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2021** 

|Notes<br>**INCOME AND ENDOWMENTS FROM:**<br>**Generated funds**<br>Donations<br>Investments<br>**Total incoming resources**<br>**EXPENDITURE ON:**<br>**Raising funds**<br>-<br>Investment management fees<br>**Charitable expenditure**<br>-<br>Grant making<br>3<br>**Total resources expended**<br>**OPERATING SURPLUS**<br>Net realised and unrealised gains/(losses)<br>**NET INCOME / (EXPENDITURE)**<br>**NET MOVEMENT IN FUNDS**<br>**FUND BALANCES**<br>As at 1 September 2020<br>**FUND BALANCES CARRIED FORWARD**|**Total**<br>**2021**<br>**£**<br>**8,203**<br>**19,320**<br>**27,523**<br>**3,892**<br>**9,040**<br>**12,932**<br>**14,591**<br>**135,447**<br>**150,038**<br>**150,038**<br>**892,473**<br>**1,042,511**|_Total_<br>_2020_<br>_£_<br>_12,296_<br>_23,591_|
|---|---|---|
|||_35,887_|
|||_3,582_<br>_12,215_|
|||_15,797_|
|||_20,090_<br>_(4,416)_|
|||_15,674_<br>_15,674_<br>_876,799_|
|||_892,473_|



All of the above are represented by continuing operations and are unrestricted.  There are no recognised gains or losses other than those shown above. 

**The notes on page 9 to 11 form part of these financial statements.** 

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THE ORDER OF THE SECRET MONITOR
FUND OF BENEVOLENCE
BALANCE SHEEr
31 AUGUST 2021
Notes
2021
2020
FIXED ASSET INVESTMENTS
Quoted Securities at market value
Cost £562,(K)412020- E564,0771
879,965
748,410
CURRENT As$￿s
Debtors
Cash at bank
I,oio
161.536
162,546
6,775
137,288
144.063
CURRENT UABILMES
Sundry creditors
CURRENT ASSETS
162.546
144.063
TOTAL ASSETS
1,042,511
892,473
Represented by:
UNRE¥fRICTED FUNDS
1,042,511
892,473
Approved by the Board and authorised for issue on 23, March 2022 and signed on their behalf by:
(2.k•.M
R A H Morrow
Grand Treasurer
The notes on page 9 to 11 forni part of these financial statements.
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**THE ORDER OF THE SECRET MONITOR FUND OF BENEVOLENCE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021** 

## **1. CHARITY INFORMATION** 

The Charity is a Public Benefit Entity registered as an unincorporated charity in England and Wales (registration no. 207781) and operates from its registered office Mark Masons' Hall, 86 St. James's Street, London, SW1A 1PL. 

## **2. ACCOUNTING POLICIES** 

## **(a) Basis of Accounting** 

The financial statements have been prepared in accordance with the Charities SORP (FRS102) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015. 

The financial statements have been prepared to give a “true and fair” view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a “true and fair” view. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. 

The charity constitutes a public benefit entity as defined by FRS 102. 

Having considered post year end results and reserves, and the impact of Covid-19, the Trustees consider the charity has adequate resources to continue in operational existence for the foreseeable future and  there are no material uncertainties. Accordingly, the accounts have been prepared on a going concern basis. 

## **(b) Investments** 

Fixed asset investments are revalued to market value at the balance sheet date and the surplus or deficit of this revaluation represents unrealised gains or losses. 

The differences between the carrying value (or cost if acquired in the year) and the proceeds of investments disposed of represent realised investment gains or losses. 

Net realised and unrealised gains or losses are shown as a combined figure in the Statement of Financial Activities. 

## **(c) Incoming Resources** 

Donations are accounted for on a receipts basis.  Income from investments and bank interest is recognised on an accruals basis. 

## **(d) Resources Expended** 

Expenditure is accounted for on an accruals basis.  Charitable expenditure represents payments of grants.  Governance costs represent the costs of the statutory running of the charity. 

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## **THE ORDER OF THE SECRET MONITOR FUND OF BENEVOLENCE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 (CONTINUED)** 

## **(e) Financial 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 amortised cost using the effective interest method. Financial assets held at amortised cost comprise cash and bank and in hand, together with accrued income. Financial liabilities held at amortised cost comprise grants payable and accruals. Investments, including bonds held as part of an investment portfolio are held at fair value at the Balance Sheet date, with gains and losses being recognised within income and expenditure. 

## **(f) Critical accounting judgements and key sources of estimation uncertainty** 

- In the application of the charity’s accounting policies, Trustees are required to make judgements, estimates, assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may 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 affects only that period, or in the period of the revision 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 affecting assets and liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year. 

## **3. GRANTS** 

From the total grants paid of £9,040, £nil was paid to individuals and the total was paid to various external charities as approved by the Executive Council. 

## **4. INVESTMENTS** 

|Market value at 1 September 2020<br>Less: Disposal proceeds<br>Add: Additions at cost<br>Net realised and unrealised gains (losses)<br>Market value at 31 August 2021<br>Historic cost|**2021**<br>**£**<br>**748,410**<br>**(88,484)**<br>**84,592**<br>**135,447**<br>**879,965**<br>**562,004**|_2020_<br>_£_<br>_756,407_<br>_(100,463)_<br>_96,882_<br>_(4,416)_|
|---|---|---|
|||_748,410_|
|||_564,077_|



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**THE ORDER OF THE SECRET MONITOR FUND OF BENEVOLENCE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 (CONTINUED)** 

## **4. INVESTMENTS (CONTINUED)** 

All investments are listed on a recognised stock exchange and managed in the UK by J M Finn & Co Limited. The investments at the year-end comprised: 

|Fixed interest<br>Equities<br>Other|**2021**<br>**104,151**<br>**597,595**<br>**178,219**<br>**879,965**|_2020_<br>_99,142_<br>_480,632_<br>_168,636_|
|---|---|---|
|||_748,410_|



Unrealised gains/(losses) amounting to £317,961 ( _2020: £184,333)_ are based on a valuation at the year-end which is unlikely to equate to the actual gains and losses which will arise on the subsequent realisation of these investments. 

## **5. TRUSTEE REMUNERATION** 

No Trustee received any remuneration or reimbursement of expenses during the current or previous year. 

## **6.        RELATED PARTIES** 

There are no related party transactions in the reporting period. 

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