Charity Re8lstration Number: 207781 THE ORDER OF THE SECRET MONITOR FUND OF BENEVOLENCE FINANCIAL STATEMENTS 31 AUGUST 2022
THE ORDER OF THE SECRET MONITOR FUND OF BENEVOLENCE TRUSTEES, REPORT FOR THE YEAR ENDED 31 AUGUST 2022 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 2022. LEGAL AND ADMINISTRATIVE DAlLs The Charity is The Order of The Secret Monitor Fund of Benevolence and is a registered charity under registration number 207781. The ChariWs address is 86 St Jame5'5 Street, London, SWIA IPL. 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 Tru5tee5 receive an induction from the President and Grand Treasurer and attend training courses as nece55ary. 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 member5 of the Executive Committee of The Order of the Secret Monitor are- Ex offlclo, 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 l D G Alexander, QC C J Aspinell l M Campbell {Retired 10 November 20221 P R Crudge C M L Davies (Retired 10 November 20221 R Ellis (Appointed 10 November 20221 K B Fergu50n (Appointed 10 November 20221 G LGill J R Hodge (Retired 10 November 20221 D Littlewood (Retld 10 November 20221 H S Markham S C L Middleton (Appointed 10 November 0221 R A H Morrow J J Singleton J S Stevens l R Sullivan A C Sweenev AJ Van der Burgh B We8erhoff (Appointed 10 November 20221 R A Williams Page 1
THE ORDER OF THE SECRET MONITOR FUND OF BENEVOLENCE TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 PRINapALADVISERS BANKERS AUDITOR Clydesdale Bank plc Crowe U.K. LLP 146-158 Kensington High Street 55 Ludgate Hill London London W87RL EC4M 7JW INVESTMENT MANAGERS JMFinn&CoLtd 4 Coleman Street London EC2R STA CONSTITUTIONS AND OBJEcf5 The Orderof the Secret Monitor Fund of Benevolence is governed by both statute (Charities Art 20111 and the Constitution5 and Regulations of The Order of the Secret Monitor dated l November 1960. The trustees are aware of the Charity Governance Code published in 2017 which 5etS Qutthe principles and recommended prartice forgood governance within the Sector. The Charity is reviewing its current governance arrangements against the principle5 Wlthin 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 thelr Dependants and the trustees achieve these by making payment5 of grants to the needy and making charitable grants for purposes specifically sanctloned by Grand Conclave. The Order of the Setret 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 thè public for funding. A significant amount of the charity's income is from investments. No complaints were reteived in relation to our fundraising activities. The Trustee5 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 ochievements of the Charity against its objertives. GRANT MAKING POUCY The payments of grants are made to the needy and for such other charitable purposes as specifically sanctioned by Grand Conclave. Page 2
THE ORDER OF THE SECR MONITOR FUND OF BENEVOLENCE TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 RESERVES POLICY At 31 August 2022. the free reseeS amounted to £921,92012021- £1,042,5111- The Trustees believe that the level of reserve5 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 reserve5 held at 31 August 2022 to manage anv 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 80ing concern basis ir) preparing the financial statements. INVESTMENT POWERS Investment powers are set out and operated within the provisions of the Trustee Art 20. 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 inCaSe in value (including providing increased dividends), rather than by any other criteria. The value of the investments at the balance sheet date was £748.566. ACTIVITIES The amount of grants paid in the year to 31 August 2022 amounted to £15,50012021'. £9,040). Page 3
THE ORDER OF THE SECRET MONITOR FUND OF BENEVOLENCE TRUSTEES. REPORT ICONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 TRUSTEES, RESPONSIBILITIES The Trustee5 are responsible for preparing the Trustees, Report and the financlal statements in accordance wlth applicable law and regulations. Charity law requires the Trustees to ppare financial statements for each flnanclal year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law. Under charity law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fairview of the state of affairs of the charlty and of its net incomingloutgoing resourtes for that perlod. In preparlng these financial statements, the Trustees are required to: select suitable accounting policies and then appty them consistently: obseNe the methods and principles in the Charitles SORP,. make judgments and estimates that are reasonable and prudent- prepare the financial statement5 on the gDlnB concern basis unless it is inappropriate to presume that the charity will continue to operate. The Trustees are responsible for keeping adequate accountlng records that are sufficient to show and explain the charty's transactions and disclose with reasonable accuracy at any time the financlal position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reportsl Regulations 2008 and the provisions of the charitys constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. AUDITOR Crowe U.K. LLP has indlcated Ots wllllngness to be reappointed a5 statutory auditor. Approved by the Trustees on & March 2023 and signed on their behalf by G Flight Trustee Page 4
Independent Audltorfs Report to the Trust•es of the Order of the Secret Monltor Fund of 8erbe¥olÈnce Oplnlon We have audite<l the financlal statements of The Order of the Secret Monitor Fund of Benevolence for the year ended 31 August 2022 which comprise Statement of Financial Attivities. the Balan 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 Accountin8 Standards, including Financial Reportin8 Standard 102 The Financial Reporting Standard applicable in Ihe UK and Republic of Ireland (United Kingdom Generally Accepted Atcountln8 Practice). In our opinion the financial 5tatements'. 've a true and fair view of the state of the charitls affairs as at 31 August 2022 and of115 Incoming resources and application of resourcès, including its income and expenditure for the year then ended. have been propèrly prepared in accordance with Unlted Klngdom Generally Accepted Accounting Practice- and have been prepared in accordance wlth the requirements of the Charities Act 2011. Basls lor oplnlon We conducted our audit in accordan with International Standards on Audltlng IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of ihe financial statements sectlon of our report. We are indèpendent of the charity in accordan with the ethical requirements that are relevant to our audlt of the financial statements in the UK, including the FRry5 Ethical Standard, and we have fulfilled our othèr ethlcal responsibilities in accordance with these requirement5. We bèliève that the audit evidence we have obtained is sufficlent and appropriate lo provlde a basis for our opinion. ConclusSons relatlng to golng (oncern In auditrng the financial statements, we have concluded thèt the trustees. use of the going Concern basls of accounting in the preparation of the financial statements 15 appropriate. Based on the work we have performed, we have not identlfied any material uncertaintie5 relatinB to events or conditions that. indlvldually or collectively, may cast Significant doubt on the charity's abillty to continue as going Conrn for a period of at least twelve months from when the flnanclal statements a authorlsed for Issue. Our responsibillties and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other Inlormatlort The trustees are responslble for the other Informatlon contained within the annual feport. The other information cornprises the Information included in the annual report, other than the financial statements and our audltorfs report thereon. Our opinion on the financial statements does not coverthe other information and we do not express any form of assurance Conclusion thereon. Our responslblllty is to read the other informalion and, In doing so. consider whether the other information is materially intonsistent with the financial statements or our knowledge obtained In the audit or olherwlse appears to be materially mi55tated. If we identify such material inconslstencies or apparent material mlsstatements. we are required to determine whether this gives rise to a material misstatement in the financial staternent5 themselves. If. based on the work we have performed. we conclude that there is a material mi5Statement cf this other information, we are required to report that fact. We have nothing to report in thi5 regard. Page 5
Matters on whlth WÈ are requlred to report by eXptIOn We have nothing to report in respert of the followinE matters in relation to which the Charitie5 IAccount5 and Reports) Regulations 2008 require u5 to report to you if. in our opinion.. the information gSven In the flnancial statements Is inconsistent in any material respect with the trustees, report," or sufficient accounting records have not been kept,. tsr the financial statements are not In agreement with the 8ccountin8 records and returns. or we have not received all the information and explanations we require for our audit Responsibilities of trustees 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 foi being satisfied that they 8ive a true and fair view, and for 5uth internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material mlsstatement. whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitvs ability to tontinue as a going concern. disclosin& a5 applicable, matters related to Boing concern and using the going concern basis of accounting unless the trustees either Intend to liquidate the charlty or to cease operations. or have no realisti¢ alternative but to do so. Auditorfs rÈsponslbllltles for the audit of the financial statements We have been appoihtèd as auditor under section 144 of the Charities Act 2011 and report in accordan with the Act and relevant regulatiorb5 madè or having effect thereunder. Our objectives are to obtaSn reasonable assurance about whether the financial statements as a whole are free from material misstaternent. whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assuran 15 a high level of assuran, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detett a material misstatement when it exist5. Mi55tstements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be experted to Influen the economic decisions of u5er5 taken on the basis of these financial statements. Irregularities, including fraud, are instan5 of non-compllance with laws and regulations. We design procedures In Ilne with our responsibilities, outlined above, to detect material misstatements In respect of irre8ularitie5, including fraud. The extent to which our procedures are capable of detecting irregularities, includin8 fraud is detailed below= A further description of our responsibSlltles for the audit of the financial statèments is located on the Financial Reporting Council's website at-. www.frc.or audStorsre5 onsibilities. This description forms part of our auditorfs report. Extent to whl¢h the èudlt was ¢onsldered capable of delectln8 Irregularhles, Includlng fraud Irregularities, includin8 fraud, are instances of non-compllance with laws and regulations. We identified and assessed the risks of material rnis5taternent 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 audtt procedure5 responsive to those risks, including obtainin8 audit evidence Sufficient and appropriate to provide a basis for our opinion. Page 6
We obtained an understanding of the legal and regulatory frameworks within which the charity and group operate5, fo¢using on those laws and regulations that have a direct effect on thè determination of material amount5 and disclosu5 in the financial Statements. The laws and regulation5 we considered in thi5 context were the Charities Art 2011 together with the Charitie5 SORP IFRS 1021. We assessed the required compliance wlth these law5 and re8ulations as part of our audit proce(lures on the related financial statèment 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 charitW5 and the group's ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that mayexist wlthln the charity and the group for fraud. The laws and reÉulations we considered in this context for the UK operations Included General Dats Protection Regulation IGDPRI. Auditing standards Ilmlt the required audlt procedures to identify non-compliance wSth 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 statement5 from irregularities, including fraud, to be within the timing of recognition of income and the override of contro15 by management. Our audit procèdures to respond to these ri5k5 included Ènquiries of management and the Management Board abouttheir own identificatlon and assessment of the risk5 of irregularities, sample testin8 on the posting of journals, reviewing accounting estimate5 for biases, sample testing of income, feviewing regulatory correspondence, and reading minutes of meetings of those charged wlth governance. Owlng to the Inherent Ilmitation5 of an audit, there is an unavoidable risk that we may not have detected some malerial misstatements in the financial statements, even though we have properly planned and performed our audit in accordan¢e with auditing standards. For exarnple, thÈ further removed non-compliance with laws and regulations lirregularitiesl isfrom thÈ èvents and transaction5 reflected in thefinancial statements, the less Ilkely the inherently Ilmited procedures required by audlting standards would identify it. In addition, as with any audlt, there remained a higher risk of non4etertion of irregularlties, a5 these may involve collusion, forgery, intentional omissions, mlsrepresentations, or the override of internal contro15. We are not responsible for preventing non-compliance and cannot be expected to detett non-compllance with all laws and regulatlons. Use of our report This report is made solely to the charitvs trustees, as a body. in accordance with Part 4 of the Charitles IAc¢ounts and Reports) Regulations 2008. Our audit wDrk has been undertaken 50 that we might state to the CharItS trustee5 those matters we are required to State to them In an auditor'5 report an¢J 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 charitV5 trustees as a body. for our audit work, for this report, or for the opinions we have formed. CklLP Crowe U.K. LLP Statutory Auditor London Date: 13 March 2023 Crowe il.K. LLP15 ell8lble for appolntment as audltor of the charlty byvlrtue of it5 eli8ibilityfDr appointment as auditorof company under section 1212 of the Companie5 Act 20D6. Page 7
The notes on pages 10 - 12 form part of these financial statements.
The notes on pages 10 - 12 form part of these financial statements.
THE ORDER OF THE SECR MONITOR FUND OF BENEVOLENCE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 CHARifi INFORMATION The Charity is a Public Benefit Entity registered as an unincorporated charity In England and Wales Iregistration no. 2077811 and operates from its registered office Mark Masons, Hall. 86 St. James's Street, London. SWIA IPL. ACCOUNTING POLICIES (al Bas15 of Attountin8 The financial statements have been prepared in accordance with the Charitie5 SORP IFR51021 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 l January 2015. The financial statements have been prepared to give a °true and fairf view and have departed from the Charitie5 (Accounts and Reports) Regulations 2008 only to the extent required to provlde a "true and fairf view. This departure has involved following Accountin8 and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS1021 issued on 16 July 2014 rather than the Accounting and Reporting by Charities.. Statement of Recommended Prartice effective from l April 2CK15 which has since been withdrawn. The charity constitutes a public benefit entity as defined by FRS 102. Having considered post year end results and reseNes, and the impact of Covid-19. the Trustees consider the charity has adequate resources to continue in operational existence for theforeseeable future and there are no material uncertainties. Accordin8ly, the accounts have been prepared on a goin8 concern ba515. (b) Investments Fixed asset investments are revalued to market value at the balance sheet date and the surplus or deficit of thi5 revaluation represents unrealised gains or losses. The differences between the carrying value lor cost rfacquired in the yearl and the proceeds of investments disposed of represent realised investment gains or losses. Net realised and UnalISed galns or losses are shown as a combined figure in the Statement of Financial Attivities. Incomlng Resources Donations are accounted for on a receipts basis. Income from investments and bank interest is recognised on an accruals basis. Id) Resource5 Expended Expenditure is accounted for on an accruals ba515. Charitable experbditure represents payments of grants. Governance costs represent the costs of the statutory running of the charity. Page 10
THE ORDER OF THE SECRET MONITOR FUND OF BENEVOLENCE NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 {CONTINUED) Ie) Financial Instruments The charity has financial assets and financlal Ilabilities of a kind that qualify a5 basic financial instruments. Basic financial instruments are initially recognised at transartion value and subsequently measured at amortised cost using the effective interest method. Financial assets held at amortised c05t comprise cash and bank and in hand, together with accrued intome. Financial Ilabilities held at amortised cost comprise grants payable and accruals. Investments, including bonds held as part of an investment portfolio are held at fairvalue at the Balance Sheet date, with gains and lossès being recognised within income and expenditure. lfl Critical accountlng ludgements and key source5 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 c0sn1Sed 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. GRANTS From the total grants paid of £15,500, £nil was paid to individuals and the total was paid to various external charities as approved by the Executive Council. INVESTMENTS 2022 2021 Market value at I September 2021 Less: Disposal proceeds Add= Additions at cost Net realised and unreali5ed gain5 {lossesl 879,965 748,410 172.1841 (88.484J 68.274 84,592 (127.4891 135,447 Market value at 31 August 2022 748,566 879,965 Historic cost 534,642 562,004 Page11
THE ORDER OF THE SECRET MONITOR FUND OF BENEVOLENCE NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 (CONTINUED) INVEsfMENTS (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= 2022 43,983 487,921 216,662 748,566 2021 104,151 597,595 178,219 879.965 Fixed interest Equities Other Unreali5ed gainslllossesl amountlng to £213,92412021.' £317,961) are based on a valuation at the year-end which is unlikely to equate to the artual galns and losses which will arise on the subsequent realisation of these investments. TRUSTEE REMUNERATION No Trustee received any remuneration or reimbursement of expenses during the current or prevlous year. RELATED PARTIES There are no related party transartions in the reporting period. Page12