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2022-12-31-accounts

Worcestershire Masonic Charity Organisation

REPORT AND FINANCIAL STATEMENTS

31 DECEMBER 2022

Charity Registration Number: 210408

WORCESTERSHIRE MASONIC CHARITY ORGANISATION

CONTENTS
Page
Report of the Trustees 1
Report of the Independent Examiners 5
Statement of Financial Activities 6
Balance Sheet 7
Notes forming part of the Financial Statements 8

WORCESTERSHIRE MASONIC CHARITY ORGANISATION

REPORT OF THE TRUSTEES

Year ended 31 December 2022

The Trustees of the Worcestershire Masonic Charity Organisation are pleased to present their report and financial statements for the year ended 31 December 2022.

The Trustees have adopted the provisions of the SORP “Accounting and Reporting by Charities” (FRS102) in preparing this annual report and financial statements of the Charity. The financial statements have been prepared in accordance with the accounting policies set out in Note1 to the financial statements and comply with the Charity’s Deed, the Charities’ Act 2011 and Accounting and Reporting by Charities: SORP applicable to Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and the Republic of Ireland.

Reference and Administrative Information

Charity Name Worcestershire Masonic Charity Organisation Charity Registration Number 210408 Registered Office 94 Birmingham Road Bromsgrove Worcs B61 0DF

Trustees

The following Trustees of the Worcestershire Masonic Charity Organisation served during the year 1 January 2022 until 31 December 2022:

SJ Wyer P V Firminger J Crowther M Dykes K M Evans

None of the Trustees has any beneficial interest in the Charity and all served without remuneration.

Secretary to the Trustees

J Mulligan

Independent Examiners

JB Coxon ACCA PC Band FCA

Bankers

HSBC plc 47 High Street Bromsgrove Worcs B61 8AW

Page 1

WORCESTERSHIRE MASONIC CHARITY ORGANISATION

REPORT OF THE TRUSTEES

Year ended 31 December 2022

Structure, Governance and Management

Governing Document

The Charity is governed under a Trust Deed dated 29 December 1934.

Recruitment and Appointment of Trustees

The power of appointing and removing Trustees is vested with the Provincial Grand Master for the time being of the Masonic Province of Worcestershire. In exercising these powers the Provincial Grand Master gives consideration to the skills mix and any identified skills gap within the existing trustee body.

Trustee Induction and Training

On agreeing to become a Trustee an individual is thoroughly briefed by the co-trustees on the history of the charity, the day to day management, the responsibilities of Trustees and the current objectives and future plans of the charity. A copy of the Trust Deed and latest financial statements are provided.

Risk Management

The Trustees actively review the major risks which the charity faces on a regular basis and believe that maintaining reserves at current levels, combined with an annual review of the controls over key financial systems and investment policy ensures adequate control over the charity’s assets while providing sufficient resources in the event of adverse conditions.

Organisational Structure

Matters of policy and management are determined by the Trustees. The day to day operations of the Charity are administered by the Secretary to the Trustees who is responsible to the Trustees.

The Trustees meet in plenary session with a structured agenda at which relevant papers and reports are considered.

Related Parties

Related parties with a number of common Trustees are as follows :

Provincial Grand Lodge of Worcestershire Masonic Library and Museum Leslie and Ivy Pountney Bursary Fund

Objectives and benefits for the public benefit

In shaping the objectives of the Charity and planning its activities, the Trustees have taken into consideration the Charity Commission’s guidance on public benefit.

The primary function of the Charity is to act for the benefit of distressed Masons, their widows and children.

The Trust Deed also provides for the Charity to act for the benefit of such Masonic charities or other charitable institutions and objects as the Trustees shall, in duly constituted meeting, from time to time direct.

Page 2

WORCESTERSHIRE MASONIC CHARITY ORGANISATION

REPORT OF THE TRUSTEES

Year ended 31 December 2022

Achievements, Activities and Performance

The Charity continued to operate the sheltered accommodation in Bromsgrove. A high level of occupancy was obtained and the scheme of renovations continued with flats being redecorated/refurbished as and when they fell vacant. Although support for local charities has increased this year incoming resources are still being affected by charitable efforts being directed to supporting Festival 2022 which is in aid of the Masonic Charitable Foundation - one of the largest charities in England which helps beneficiaries locally, elsewhere in the UK, and also overseas. Festival 2022 finished after the year end and it is now expected that incoming resources will begin to increase.

Financial Review

The accounts for the year show net incoming funds (before unrealised gains/losses on investments) of £(8,598)a deficit, (2021 - £17,107).

Income

Income from all sources amounted to £109,390 (2021 - £86,596). This increase is due, in the main, to the receipt of a legacy of £18,569 and an increase in investment income as interest rates began to rise.

Expenditure

Expenditure totalled £117,989 (2021 - £69,489). This increase is largely due an increase in donations made as a result of an easing in the economic climate following Covid. Matched funding for some of the donations was received from the Masonic Charitable Foundation thus increasing the impact of our donation. Spending by way of maintenance and improvement of the flats in the sheltered accommodation complex has remained stable this year but this stability was offset by a substantial charge for electricity. The Heritage Fund was used to make grants to local meeting places to enable them to maintain and improve facilities and to reduce running costs. Support costs and direct costs remained under close control.

Principal Funding Sources

The principal funding sources arise through :

Charity Land and Buildings

The charity owns the residential complex known as Ellard Hanson Court on the Birmingham Road, Bromsgrove.

Page 3

WORCESTERSHIRE MASONIC CHARITY ORGANISATION

REPORT OF THE TRUSTEES Year ended 31 December 2022

Investment policy

The investment objectives are for a secure level of income together with capital protection. The Trustees reviewed the charity’s investment policy during the year. The charity is a long-term investor and holds a mixed portfolio of institutional deposits, NS&I products, and funds managed by COIF. No changes were made in the year to the funds held by COIF or other institutions holding deposits..

Reserves policy

The Trustees consider that the level of reserves is appropriate to generate the income required by the Charity for its charitable commitments and to provide for the maintenance of the buildings of Ellard Hanson Court.

Statement of Responsibilities of the Trustees

The Trustees are responsible for preparing an Annual Report of the Trustees and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charity (Accounts and Reports) Regulations and the provisions of the trust deed. 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.

The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

.

Approved by the Trustees on 12 June 2023 and signed on their behalf by:

S J Wyer

Chairman of the Trustees

Page 4

WORCESTERSHIRE MASONIC CHARITY ORGANISATION

INDEPENDENT EXAMINERS’ REPORT TO THE TRUSTEES OF THE

WORCESTERSHIRE MASONIC CHARITY ORGANISATION

We report on the accounts of the Charity for the year ended 31 December 2022, which are set out on pages 6 to 14.

Respective responsibilities of trustees and examiners

The charity’s trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. We are qualified to undertake the examination by being members of professional bodies listed in the Charities Act 2011.

Having satisfied ourselves that the charity is not subject to audit and is eligible for independent examination it is our responsibility to:

Basis of independent examiners’ report

Our examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.

Independent examiners’ statement

In connection with our examination, no matter has come to our attention:

(1) which gives us reasonable cause to believe that in any material respect the requirements:

have not been met; or

(2) to which, in our opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

J B Coxon ACCA P C Band FCA

12 June 2023

Page 5

WORCESTERSHIRE MASONIC CHARITY ORGANISATION

STATEMENT OF FINANCIAL ACTIVITIES

for the year ended 31 December 2022

Unrestricted
funds
Note
£
Income
Voluntary income – donations
2,823
Investment income
2
4,315
Legacy
18,569
Incoming resources from charitable
activities
3
-
Total income
25,707
Expenditure
Charitable activities
4
47,135
Total expenditure
47,135
Net Incoming/(Outgoing) resources for the year
(21,428)
Before other recognised (losses)/gains
(Losses)/Gains on investments – unrealised 15
-
Net Movement in funds
(21,428)
Reconciliation of funds
Fund balances as at 1 January 2022
298,033
Fund balances as at 31 December 2022
14
276,605		 Restricted
funds
£
50
11,592
72,041
83,683
70,853
70,853
12,830
(44,008)
(31,178)
1,416,826
1,385,648		 2022

Total

funds

£
2,873
15,907
18,569
72,041
109,390
117,988
117,988
(8,598)
(44,008)
(52,606)
1,714,859
1,662,253		 2021
Total
funds
£
4,035
12,207
-
70,354

86,596
69,489
69,489
17,107
30,551
47,658
1,665,401		 2021
Total
funds
£
4,035
12,207
-
70,354
86,596
69,489
69,489
17,107
30,551
1,713,059

There were no recognised gains or losses for 2022 or 2021 other than those included in the Statement of Financial Activities.

All income and expenditure relates to continuing operations.

The notes on pages 8 to 14 form part of these financial statements.

Page 6

WORCESTERSHIRE MASONIC CHARITY ORGANISATION

BALANCE SHEET

as at 31 December 2022

Note
£
Fixed assets
Tangible fixed assets
9
Office equipment
9
Investment assets
15
Current assets
Debtors
10
91,543
Cash at bank
622,8630
Srock of merchandise
416
714,822
Current liabilities
Creditors:amounts falling due within
one year
11
(46,515)
Net current assets
Total assets less current liabilities
Unrestricted funds
General and Designated
12
Restricted funds
13		 2022
£
643,731
1,224
348,991
993,946
668,307
1,662,253
276,604
1,385,649
1,662,253		 2021
£
£
643,731
-
465,146
1,108,877
83,760
539,202
-
622,985
(17,003)
605,982
1,714,859

298,031
1,416,828
1,714,859		 2021
£
£
643,731
-
465,146
1,108,877
83,760
539,202
-
622,985
(17,003)
605,982
1,714,859

298,031
1,416,828
1,714,859
1,714,859

The notes on pages 8 to 14 form part of these financial statements.

The financial statements were approved by the Trustees on 12 June 2023 and signed on their behalf by

S J Wyer

P V Firminger

Trustees

Page 7

WORCESTERSHIRE MASONIC CHARITY ORGANISATION

NOTES TO THE FINANCIAL STATEMENTS

31 December 2022

1 Accounting policies

1.1 Basis of preparation and assessment of going concern

The financial statements have been prepared under the historical cost convention, modified to account for investments which are stated at fair value, and include the results of the charity’s operations which are described in the Report of the Trustees. The financial statements have been prepared in Sterling which is the functional currency of the Charity.

The financial statements have been prepared in accordance with the provisions of the Charities Act 2011 and in compliance with Accounting and Reporting by charities: SORP applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Ireland (FRS 102). The Charity constitutes a public benefit entity as defined by FRS 102.

The Trustees consider that there are no material uncertainties about the Charity’s ability to continue as

a going concern.

1.2 Fixed assets

Tangible fixed assets

Individual fixed assets costing £500 or more are capitalised at cost.

Depreciation is provided on the cost less the estimated residual value of fixtures and fittings at the rate of 25% per annum straight line and at 33.3% straight line on computer equipment. No depreciation is provided on freehold land or the cost of freehold buildings as, in the opinion of the Trustees, the residual value of the assets are so high and the life span so long that any element of depreciation would not be material.

1.3 Fund accounting

Restricted funds

Restricted funds represent grants and donations which are subject to restrictions on their expenditure imposed by the donor or through the terms of an appeal.

Unrestricted funds and designated funds

Unrestricted funds represent funds that are expendable at the discretion of the Trustees in the furtherance of the objects of the charity. Such funds may be held in order to finance both working capital and capital investment. Designated funds are those funds which are unrestricted in nature, but which have been designated by the Trustees to be used in a particular manner.

1.4 Incoming resources

All incoming resources are included in the Statement of Financial Activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

Page 8

WORCESTERSHIRE MASONIC CHARITY ORGANISATION

NOTES TO THE FINANCIAL STATEMENTS

31 December 2022

1.5

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include independent examination fees and costs linked to the strategic management of the charity.

All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity comprise both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

1.6 VAT

Value added tax is not recoverable by the charity, and as such is included in the relevant costs in the Statement of Financial Activities and tangible fixed assets.

1.7 Investments and Investment Gains and Losses

Investments are a form of basic financial instruments and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing market price. All gains and losses are recognised in the Statement of Financial Activities as they arise and accounted for through the fund for which they are held. Realised gains and losses are calculated as the difference between opening carrying value (or cost if purchased in the year) and sales proceeds. Unrealised gains and losses are calculated as the difference between their fair value at the year end and their carrying value. All investment gains and losses are combined in the Statement of Financial Activities.

2.
Investment income
COIF distributions
Interest
3.
Incoming resources from charitable activities
Licence fees		 2022
£
6,135
9,772
15,907
2022
£
72,041		 2021
£
6,042
6,166
12,207		 2021
£
6,042
6,166

2021
£
70,354

Page 9

WORCESTERSHIRE MASONIC CHARITY ORGANISATION

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 December 2022

4. Expenditure on charitable activities

Home and
Restricted
Unrestricted
Donations
General
£
£
Other donations and grants
5,952
40,241
Utilities and insurance
35,140
130
Cleaning
1,725
-
Telephone
-
-
Repairs and maintenance
19,698
-
Other costs
588
-
63,103
40,371
Support costs (Note 5)
7,750
6,764
Total
70,853
47,135
5.
Support costs
Home
General
£
£
Employee and other costs
7,240
2,016
Rent
-
1,800
Computer support/licences
-
297
Stationery, postage and printing
5
218
Photocopying
-
164
Professional fees
-
1,306
Telephone
-
389
Sundries
505
574
Total
7,750
6,764
6.
Employee costs and numbers
Salaries and related costs
The average number of full-time equivalent employees during the year was:
Sheltered accommodation
Administration
There are no employees earning more than £60,000
2022

Total

£

44,406

35,270

1,725

100
19,698

588

51,042
18,447

69,489
2022
Total
£
9,256
1,800
297
223
164
1,306
317
1,079
14,442
2022
£
13,966
2022
No.
0
2
2		 2021
Total
£
15,093
14,408
1,150
100
10,526
1,406
51,042
18,447
69,489
2021
Total
£
13,966
1,800
384
169
204
1,231
317
376
18,447
2021
£
13,966
2021
No.
1
2
3

Page 10

WORCESTERSHIRE MASONIC CHARITY ORGANISATION

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 December 2022

7. Related party transactions

No trustee or other person related to the charity had any personal interest in any contract or transaction entered into by the charity during the year (2021 - None).

8. Taxation

As a charity, the Worcestershire Masonic Charity Organisation, is exempt from tax on income and gains falling within section 478 of the Taxes Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen within the charity.

9 . Tangible fixed assets

Cost
As at 1 January 2022
Additions in year
Disposal in year
At 31 December 2022
Depreciation
As at 1 January 2022
Charge for year
At 31 December 2022
Net Book Value
As at 31 December 2022
As at 31 December 2021		 Freehold
Buildings
£
643,731
-
-
643,731
-
-
-
643,731
643,731		 Fixtures
and
Fittings
£
6,224
-
-
6,224
6,224
-
6,224
-
-		 Office
Equipment
£
-
1,836
-
1,836
-
612
612
1,224
-		 Total
£
649,955
1,836
-
651,791
6,224
612
6,836
644,955
643,731

Page 11

WORCESTERSHIRE MASONIC CHARITY ORGANISATION

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 December 2022

2022
£
10.
Debtors
Other Debtors
11,542
Loan
80,001
91543
Of the debtors shown above the loan of £80,000 (2021 - £80,000) is due after more than one
and is secured with a charge on property.
11.
Creditors: amounts due within one year
2022
£
Creditors and Accruals
46,515
12.
Unrestricted funds
1 January Incoming Outgoing
2022 resources resources
Transfers
£
£
£
£
General funds
198,033
25,707
(47,135)
-
Designated100,000 - -
-

298,033
25,707
(47,135)
-		 2021
£
3,759
80,001
83,760

year
2021
£
17,003
31 Dec
2022
£
176,605
100,000
276,605

The designated fund comprises monies donated by masons meeting in Bromsgrove following the sale of their property in that town. The trustees have designated it as a fund to be used in the event of worthwhile causes being identified which would not or could not normally be met out of general funds.

Page 12

WORCESTERSHIRE MASONIC CHARITY ORGANISATION

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 December 2022

13. Restricted funds

1 January Incoming Outgoing 31 December
2022 resources resources Transfers 2022
£ £ £ £ £
Yorke-Brookes Fund 28,525 736 (2,809) - 26,452
Ellard Hanson Fund 1,002,849 75,121 (64,901) - 1,013,069
Heritage Fund 374,797 8,288 (46,038) - 337,047
Other Restricted Funds 10,655 50 (1,624) - 9,081
Total 1,416,826 84,195 (115,372) - 1,385,649

Included in “Outgoing resources” above are losses on investments of £41,763 for Heritage Fund and £2,244 for Yorke Brookes Fund

The Restricted Funds are held for the following purposes:

Yorke-Brookes Fund – to assist Freemasons in need to meet their obligations to their Mother Lodge and Chapter.

Ellard Hanson Fund – this fund represents monies donated to acquire and maintain the fabric of the sheltered accommodation situated in Bromsgrove.

Heritage Fund – to maintain and improve facilities at Masonic buildings in the Province of Worcestershire so as to maintain the Masonic heritage of such buildings for the public good. Other – these represent funds donated for specific causes nominated by the donors and which are accumulated and subsequently paid over to such causes.

14. Analysis of net assets between funds

Investments at fair value
Tangible fixed assets
Current assets
Current liabilities		 Restricted
Unrestricted
funds
funds
Total
£
£
£
338,991
10,000
348,991
643,731
1,224
644,955
431,059
283,763
714,822
(28,132)
(18,383)
(46,515)
1,385,649
276,604
1,662,253

Page 13

WORCESTERSHIRE MASONIC CHARITY ORGANISATION

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 December 2022

15. Investments

Cost
At 1 January 2022
Additions
Disposals
At 31 December 2022
Fair Value Adjustment
At 1 January 2022
Brought forward balances correction
Investment (loss)/gain of year
At 31 December 2022
Fair Value at 31 December 2022		 2022
£
286,556
-
-
286,556
98,245
8,198
(44,008)

62,435
348,991
 2021
£
286,556
-
-
286,556
67,694
-
30,551
98,245
384,801

Page 14