Charlty Reglstratlon Number: 207781 THE ORDER OF THE SECRET MONITOR FUND OF BENEVOLENCE FINANCIAL STATEMENTS 31 AUGUST2023
THE ORDER OF THE SECR MONITOR FUND OF BENEVOLENCE TRUSTEES, REPORT FOR THE YEAR ENDED 31 AUGUST ZOZ3 The Trustees of The Order of the Secret Monitor Fund of Benevolerkce present their report and the financial statements for the year ended 31 August 2023. LEGAL AND ADMINISTRATIVE DETAILS The Charlty is The Order of The Secret Monitor Fund of Benevolence and is a registered charity under registrotion number 207781. The Charity's address is 86 St James's Street, London, SWIA IPL. TRUSTEES The Trustee5 of The Order of the Secret Monitor Fund of Benevolence, who served during the year nd to the date of signing this report, are: G Fllght Newly appointed Trustees receive an induction from the President and Grand Treasurer and attend trainin8 courses as necessary. ORGANISATION The members of the Executive Committee a 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 wlth the exception of the Grand Treasurer who Is elected by The Order of the Secret Monltor Hi5 Hon l D G Alexander, KC C J Aspinell P R Crudge R Ellis K B Ferguson G LGill H S Markhom S C L Middleton IRetired 9 November 20231 R A H Morrow J C Roberts (Appointed 9 November 20231 M J J Singleton J S Stevens I Rsulllvan A C Sweeney Drs A J Van der Burgh B We8erhoff R A Williams {Retired December 20231 Page 1
THE ORDER OF THE SECRET MONITOR FUND OF BENEVOLENCE TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 PRINCIPAL ADVISERS BANKERS AUDITOR Clydesdale Bank plc (Trading as Crowe U.K. LLP Virgin Moneyl 55 Ludgate Hill 7 Gold Street London Northampton EC4M 7JW NNI IEN INVESTMEKf MANAGERS JMFinn&CoLtd 4 Coleman Street London EC2R STA CONsfiTUTIONS AND OBJECts The Order of the Secret Monitor Fund of Benevolence is governed by both statute (Charitie5 Act 2011} and the ConstltLrtions and Regulations of The Order of the Secret Monitor dated l November 1960. The tnjstees are aware of the Charity Governance Code published in 2017 which sets outthe principles and recommended practice for good 8overnance 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 fundr3i5ing activities. The Trustees confirni that they have complled wlth the duty in section 17 of the Charitie5 Act 2011 to have due regard to the guidance issued by the Chority Commission on the strategy towards and the achievements of the Charity against its objectives. 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 SECRET MONITOR FUND OF BENEVOLENCE TRUSTEES, REPORT {CONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2023 RESERVES POUCY At 31 August 2023, the free resee5 amounted to £867,31012022.' £921,920). The Trustees believe that the level of reseryes 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 reseeS held at 31 August 2023 to manage any foreseeable downturn in the UK economy. The Trustees consider that there is a reasonable expectstion 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 prDViSiDn5 of the Trustee Act 2000. The investments are managed by the Investment Comrnwttee. 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 donation5 from the members and any investment income lincluding capital gains). In accordance with these aim5, the fvnds ore managed by J M Finn & Co Limited. The Investment Committee, appointed by the Trustees, reviews the funds on a regular basis. Change5 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 lincluding providing increased dividends), rather than by any other criteria. The value of the investments at the balance sheet date was E680,484. AcnviTIES The amount of grants paid in the year to 31 August 2023 amounted to £13,65012022.' £15,51. Page 3
THE ORDER OF THE SECRET MONITOR FUND OF BENEVOLENCE TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 TRUSTEES. RESPONSIBILITIES The Trustees are responsible for preparing the Tru5tees' 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 Accepted Accounting Practice Iunited Kingdom Accourbting Standards) and applicable law. Under charity law the Trustees must not approve the financial statements unle55 they are satisfied that they give a true and fair view of the state of affairs of the charity and of its net incomingloutgoing resources for that period. In preparing these financial statements, the Trustees are required to.. select suitable accounting policies and then apply them consistently; obseNe the methods and principles in the Charitles SORP- make judgments and estimates that are reasonable 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 charitvs transactions and disclose 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 provision5 of the charity's constitution. They are also responsible for 5afeguardin& 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 ha5 indicated its willingness to be reappointed a5 Statutory auditor. Approved by the Trustees on 26 March 2024 and signed on their behalf by G Fllght Twstee Page 4
Independent Auditor's Report to the Trustees of the Order of the Secret Monltor Fund of Benevolen Opinlon We have audited the financial statements of rhe Order of the Secret Monitor Fund of Berevolence for the year ended 31 August 2023 which comprise Statement of Financial Activities, the Balance Sheet and note5 to the financial statements, including significant accountln8 policie5. 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 VK and Republic of Ireland (United Killgdorn Generally Accepted Accounting Practice). In our opinion the financial statements.. glve a true and fair view of the state of the charivs affairs as at 31 August 2023 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 ACpted Accountin8 Practice., an(J have been prepared in accordance with the reoulrements of the Charities Act 2011. Ba515 for oplnSon We conducted our audit in accordance with Internation315tandards on Auditing IUKI IISAS IUKII and applicable law. Our responslbilities 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, Includlng the FRCS 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 oplnlon. Conclusions relatlnÉ to goin8 concern In auditing the financial statements, we have concluded that the trustees, use of the 8olng concern basés of accounting in the preparation of the financial statements is approprlate. Based on the work we have performed, wè have not identified any materfal un¢ertainties relating to events or conditions that, individually or collectlvely, 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 authorlsed for Issue. Our rE5ponsibilities and the responslbllitles of the trustees with respect to goin8 concern are descrlbed In the relevant sections of this report. Other Inlormatlon The trustees are responsible for the tsther inforrnation contained within the annual report. The other Information comprises the inforrnation included in the annual report, other than the financlal statements and our auditor's report thereon. Our opinion on the finantial statements does not cover the other information and we do not express any form of assurance condu5ion thereon. Our responsibility 15 to read the other Information and, in doing so. consider whether the other information 15 materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwlse ppears to be materially rnisstated. If we Identlfy such material inconslstencies or apparent material misstatements, we are requlred to determine whether this gives rise to a material rnisstatement in the finantial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other Information, we are required to report that fact. We have nothing to report in this regard. Page 5
Matters on whlch we are rèqulred to report by exceptlon We have nothing to report In respect of the following matteTS in relation to whlch the Charities (Accounts and Report51 Regulation5 2008 require us to report to you if, in our opinion.. the information 8iverb in the financial statements 15 inconsistent in any material respect with the tru5tee5' 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 Responslbllltles of trustees As explained more fully in the tru5tees' responsibllitiés statpment 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 ¢Jetermine is necessary to enable the preparatlon of financial statements thai are free from material mi5Statemenl, whether due tc* fraud or error. In preparing the financial statements, the trustees are responsible for 3ssesslng the ¢haritVs ablllty to continue 5 a 80ing concern. disclosin& as applicable. matters related to going concern and using the going concern basls of accounting unless the trustees elther Intend to liquldate the charlty or to cease operations. or have no realistic altemative but to do so. Audltorfs responslbllltles for the audlt of the financlal statements We have been appointed as audrtor under section 144 of the Chartties Act 2011 and report In accordance with the Art and relevant re8ulation5 rnade or havin8 effect thereunder. Our objertives are to obtain reasonable assurance about whether the financial statements as a whole are free from material mi55talement, whether due to fraud or error, and to issue an auditor's report that inrlude5 our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI 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 expecied to influence the economic decision5 of user5 taken ofi the basi5 of these financial statements. Irregularities. including fraud. are instances of non-complian with laws and regulations. We design procedures in line wilh our re5ponsibilitle5, Outlined abov, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting Irregularities, includin8 fraud is detailed below.. A further description of our respon5ibilitie5 for the audit of the financial statemen15 15 located on the Financial Reportlng Council's website at.. www.frc.o .uk auditor5res onsibilities. This description forrns part of our audltorfs report. Extent to whlch the audlt was consldÈred Capab of detectlng Irregularltles. Indudlng fraud ITreBularities. including fraud. are instances of non-compllance with laws and regulations. We identified and assessed the ri5k5 of material mi55tatement 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 basls for our opinion. Page 6
We obtained an understanding of the legal and regulatory frameworks within which the charity and group operate5, focusing on those laws and regulations that have a direct effect on the determination of material amounts and di5c105ures in the flnancial statements. The laws and regulations we Eonsidered in this context were the Charities Act 2011 together wlth the Charities soRp IFRS 1021. We assessed the required compliance with these laws and regulations as part of our audit pro¢edures on the related financial statemeni Items. In afldition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but complianEe with whlch might be fundamental to the charitV'5 and the group's ability to operate or to avoid a material penalty. We a150 considered the opportunities and incentives that may exist within the charity and thegroup for fraud. The laws and regulations we considered in this context for the UK operations included General Data Protection Regul3tion IGDPRI. Auditing Standards limit the requlred audit procedures to identify non-compllance with these law5 and regulations to enquiry of the Trustees and other management and inspection of regulatofv and legal ¢orresponden¢e, if any. We identlfied the greatest risk of material impact on the financial 5tstements from irregularities, including fraud, to be within the timin8 of recognition of income and the override of contro15 by management. Our audit procedure5 to respond to these risks included enquirie5 of management and the Management Board abouttheir own identification and assessment of the risks of irregularitie5, sarnple testing on the postin8 of journals, reviewing accountin8 estimates for biases, sample testing of Income. reviewing regulatory correspondence, and reading minutes of meetings of those charged with governance_ Owing to the Inherent Ilmitations of an audit, there 15 an unavoidable risk that we may not have detected some material misstaiements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example. the further rernoved ntrn-tompliance with laws and regulations lirregularitiesl is from the event5 and trans3Ctions reflected in the financial statements, the less likelv the inherently limited procedures required by auditing standard5 would identify it. In addition, as with any audit, there remained a highef risk of non-detection of irregularities, a5 these may Involve collusion, forBerv, intentional omissions, misrepresentations, or the override of intemal contro15. We are not responsible for preventing non-compliance and cannot be expected to detert non-compliance with all laws and regulations. Use ofour report Thls report Is made solely to the charivs trustee5, as a body. in a¢¢¢rdance with Part 4 of the ChaTltie5 IA¢covnts and Reports) Regulations 2LK)8. Our audit work has been undertaken $0 that we might state to the charit5 trustees 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 accept or assume responsibility to anyone other than the charity and the chariivs trustee5 as a body, for our audit work, for this report, or for the opinions we have formed. U.K LIP Crowe U.IL LLP Statutory Auditor London Date- 16.04.2024 Crawe U.K. LLP is eligible far appointment as audftor of the charity by virtue of its eligibility for appo1ment as audltor of company under Section 1212 of the Companies Act 2006. Page 7
THE ORDER OF THE SECR MONITOR FUND OF BENEVOLENCE STATEMENT OF FINANCIAL AcfiviTIES FOR THE YEAR ENDED 31 AUGUST 2023 Notes Total 2023 Total 2022 INCOME AND ENDOWMENTS FROM: Generated funds Donations Investments 8,575 20,113 6,296 20.012 Total incomln8 resources 28,688 26,308 EXPENDITURE ON: Raising funds Investment management fees Charitable expenditure Jewel Costs IPresident & Vice President pins) Grant making 3,382 3,910 1,804 13,650 15,500 Total resources expended 18,836 19.410 OPERATING SURPLUS 9,852 6,898 Net realised and unrealised gainslllossesl 164,4621 f127.489J INCOME / (EXPENDITURE) 154.6101 f120,591J NET MOVEMENT IN FUNDS 154,6101 f120.591J FUND BALANCES As at I September 2022 921,920 1,042,511 FUND BALANCES CARRIED FORWARD 867,310 921,920 All of the above are represented by continuing operations and are unrestricted. There are no recognised gains or losses other than those shown Obove. The notes on page 10 to 12 fom part of these financial statements. Page 8
THE ORDER OF THE SECRET MONITOR FUND OF BENEVOLENCE BALANCE SHE 31 AUGUST 2023 Notes 2023 2022 FIXED ASSET INVESTMENTS Quoted securities at market value Cost £541,04612022.. £534,462) 680,484 748,566 CURRENT AssEf5 Debtors Cash at bank 7,084 182,016 189,100 1,347 172,007 173,354 CURRENT LIABILITIES Sundry creditors 2,274 NEf CURRENT ASSErs 186.826 173,354 TOTAL ASSEf5 867,310 921,920 Represented by: UNRESTRICTED FUNDS 867,310 921,920 Approved by the Board and authorised for issue on 26 Marth 2024 and signed on their behalf by= R A H Morrow Treasurer The notes on page 10 to 12 fomi part of these flnanclal statements. Page 9
THE ORDER OF THE SECRET mONOR FUND OF BENEVOLENCE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 CHARITY INFORMATION The Charity is a Public Benefit Entity registered as an unincoiporated 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 POUCIES l?) Basis of Accounting The financial statements have been prepared in accordance with the Charities SORP IFR51021 applicable to charities preparing their accounts in accordan 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 Charities (Accounts and Reports) Regulations 21)08 only to the extent required to provide a 'true and fairt view. This departure has involved following Accounting and Reporting by Charf(ies 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 Practice effective from l April 2CKJ5 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 forthe foreseeable future and there are no material uncertainties. Accordin8lyi the accounts have been prepared on a going concern basis. Ibl 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 lor cost if acquired in the yearl and the proceeds of investments disposed of represent realised investment gains or losses. Net realised and unrealised 8ains or losses are shown as a combined figure in the Statement of Financial Activities. Incoming Resouyces Donations are accounted for on a receipts basis. Income from investments and bank interest is recosnised on an accruals basis. (d) Resources Expended Expenditure is accounted for on an èccruals basis. Charitable expenditure represents payments of grants. Govemance costs represent the costs of the statutory running of the charity. Pa8e10
THE ORDER OFTHE SECREf MONITOR FUND OF BENEVOLENCE NOTES TO THE FINANCIAL STATEME[5 FOR THE YEAR ENDED 31 AUGUST 2023 (CONTINUED) le) Financlal Instruments The chority has financial assets and financlal Ilabillties 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. Financlal liabilitie5 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. ifj Critlcal accountlnE ludEements and key sources of estimation uncertalnty In the application of the charit5 accounting policies, Trustees are reqLJired 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 historlcal 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 Trustee5. no assumptions conceming 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 £13,650. £nil was paid to individuals and the total wa5 paid to various external charities as approved by the Executive Council. INVESTMEKrs 2023 2022 Market value at I September 2022 Les5= Disposal proceeds Add: Additions at cost Net realised and unrealised gains {lossesl 748,566 879.965 (117,267) 172,184J 113,646 68.274 (64,462) (127,489) Market value at 31 August 2023 680,484 748.566 Historic cost 541,046 534,642 Page 11
THE ORDER OF THE SECRET MONITOR FUND OF BENEVOLENCE NOTESTO THE FINANCIALSTATEMEMrs FOR THE YEAR ENDED 31 AUGUST 2023 (CONTINUED) 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- 2023 72,139 470.585 137,760 680,484 2022 43,983 487,921 216,662 748,566 Fixed interest Equities other Unreallsed galns/l105sesl amounting to £139,43812022.' £213,924) are based on a valuation at the year-end which is unlikely to equate to the artual gains afid losse5 which will arise on the subsequent realisation of these Investments. TRUSTEE REMUNERATION No Trustee received any remuneration or relmbursement of expenses during the Current or previous year. RELATED PARTIES There are no related party transactions in the reporting period. Page 12