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2020-12-31-accounts

SHROPSHIRE MASONIC CHARITABLE ASSOCIATION

Charity Registration No. 216754

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

SHROPSHIRE MASONIC CHARITABLE ASSOCIATION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees J R Weaver (Appointed 2 September
2020)
R B Pemberton
A Cadman
P Robinson
N Garavini (Appointed 2 September
2020)
D J Hill
J C Hollick
D Foulkes
D P Price
S D Aucott
D J Kettle
R Brooks
P Mills
S Wilson (Appointed 2 September
2020)
Charity number 216754
Auditor Dyke Yaxley Limited
1 Brassey Road
Old Potts Way
Shrewsbury
Shropshire
SY3 7FA

SHROPSHIRE MASONIC CHARITABLE ASSOCIATION

CONTENTS

Page
Trustees' report 1 - 5
Independent auditor's report 6 - 9
Statement of financial activities 10 - 11
Balance sheet 12
Notes to the financial statements 13 - 24

SHROPSHIRE MASONIC CHARITABLE ASSOCIATION

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees present their report and financial statements for the year ended 31 December 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the association's By-laws, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

Objectives and activities

The general objects of the Association are to increase the amount, and render more effective the collection, application and administration of the funds raised in the Province of Shropshire for Masonic and Non-Masonic charitable purposes. To achieve this two funds have been established, called respectively the ‘A’ Fund and the ‘B’ Fund. These funds have now been renamed 'Central MCF' and 'Shropshire MCF', respectively. The funds consist of all donations and annual subscriptions paid to the Association. The allocation ratio of receipts between the Central MCF and Shropshire MCF Funds is approved by the members at the Annual General Meeting of the Association.

The Funds are applied as follows:

Central MCF (Formerly 'A' Fund)

For and on behalf of:-

i. Any or more of the Masonic Charitable Institutions managed under the umbrella of the Masonic Charitable Foundation (the MCF);

OR

ii. Such Non-Masonic charities as the members of the Association shall from time to time decide by resolution.

Shropshire MCF (Formerly 'B' Fund)

For :-

i. The Provincial Benefit;

AND

ii. The Association’s working expenses fund.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the association should undertake. The trustees consider the objectives and activities of the association are of a public benefit.

The Association has very close relationships with the various Lodges and Chapters within the Province. As stated above, the Income of the Association is derived from the donations of the members of these Lodges, together with the subscriptions from the Lodges and Chapters.

Achievements and performance

At the start of the year the Association was focused on the Trust’s main objectives:

SHROPSHIRE MASONIC CHARITABLE ASSOCIATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

In April, reacting to the escalating impact of the Coronavirus pandemic, the SMCA started a Coronavirus Emergency Relief Fund (CERF) with a transfer of £10k from Shropshire MCF to CERF, this fund was progressively topped up with donations from Lodges, Lodge members, and non-masonic members. The final amount donated to the fund was an amazing £21.85k. The key objective of the CERF fund was help mitigate the impact of the pandemic in Shropshire by supporting food banks and the production of items of PPE, as well as providing funding for young carers and domestic abuse charities – all of whom reported significant increases in referral rates as a result of Covid-19. In total 34 organisations were supported with much needed emergency funding.

In addition, during 2020 the Association donated £47.55k to non-masonic Shropshire based charities and made payments of £8.3k to members in financial need.

From 1 st January 2020 membership donations were allocated as follows:

20% to the Central MCF ( previously known as the “A” Fund )

80% to the Shropshire MCF ( previously known as the “B” Fund )

Financial review

Incoming resources are 79% lower than 2019 and outgoing resources decreased by 78%. The 2020 income and donations continue to reflect the current economic conditions, however the committee’s main objective for the year was to continue to support as many of the charity’s beneficiaries as possible and the donations disclosed in these financial statements achieved this objective.

The investments held on behalf of the Pointon Forest Glen Trust have shown an increase in value of 3% compared to an increase of 21% in 2019. This increase/gain is due to a revaluation of the investments to market value at the year end.

The restricted fund has increased from £53,588 to £58,886. The restricted fund is made up of five funds, the Central MCF, the Coronavirus Emergency Relief Fund (CERF), the Teddies for Loving Care Appeal (TLC Appeal), the 2019 Festival Fund and the 2030 Festival Fund.

The endowment funds represent permanent and expendable endowments donated to be administered by the Association, the income from which is expended in accordance with the terms of the Trusts.

Reserves policy

The trustees of the Association have adopted a reserves policy regarding the unrestricted funds based on a target level of reserves to maintain their level of charitable donations for a period of three years. To this end, the trustees consider that the existing reserves are adequate for this purpose. Unrestricted funds total £154,732 at 31 December 2020 (2019: £190,201).

SHROPSHIRE MASONIC CHARITABLE ASSOCIATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Investment Policy

The return on the funds invested remains low as a result of the interest rates prevailing, which have remained at an historic low for the year and there is little sign of an increase in the immediate future.

The committee have reviewed alternative investments which may provide a greater return. Such investments are higher risk than the current investments and the Committee does not feel that this potential increase in return warrants the exposure to that risk. Therefore, the Committee intends to continue with their investment policy (which remains under regular review) and keep the funds on deposit, whilst obtaining a competitive rate of interest.

Risk Factors

The trustees have assessed the major risks to which the association is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Coronavirus - Going Concern Impacts

Coronavirus is expected to have only a limited impact on the ability of the Association to operate as a going concern during 2021. Income is largely derived from Standing Order and Direct Debit payments, both of which are expected to remain largely unchanged (number and amount) during the year. Conversely, expenditure is planned and subject to both rigorous budget control and Trustee approval in all cases. While there is the potential for an increase in the number of Emergency Grants paid as a result of the crisis, these payments will be strictly monitored and approved in such numbers and amounts that do not put the Associations finances at risk

The Association intends to continue obtaining funding for both of its main funds and to make donations to Masonic and Non-Masonic charities.

Structure, governance and management

The Association operates in accordance with its By-Laws and is a Registered Charity with the Charities Commission, number 216754. The registered address for the Association is Freemason’s Hall, Crewe Street, Shrewsbury.

The By-laws of the Association is the “Shropshire Masonic Charitable Association By-Laws”, dated 2 nd

September 2020.

The trustees who served during the year and up to the date of signature of the financial statements were: J R Weaver (Appointed 2 September 2020) R B Pemberton A Cadman J K Lund (Resigned 2 September 2020) P A Taylor (Resigned 2 September 2020) J M Hodgson (Resigned 2 September 2020) J F Williamson (Resigned 2 September 2020) P Robinson I W Edgington (Resigned 2 September 2020) G Watson (Resigned 2 September 2020) N Garavini (Appointed 2 September 2020) D J Hill J C Hollick D Foulkes D P Price S D Aucott A Caswell (Resigned 2 September 2020) D J Kettle P Hasler (Resigned 2 September 2020)

SHROPSHIRE MASONIC CHARITABLE ASSOCIATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

R Brooks P Mills S Wilson (Appointed 2 September 2020)

The Patrons of the Association are the Provincial Grand Master and the Past Provincial Grand Master(s), and the Vice-Patrons are his Deputy and the Past Deputy Provincial Grand Master.

The general management of the Association is conducted by a committee consisting of the following ex-officio and elected members: -

a) Ex-officio Members

  - The Patrons and Vice-Patrons.

  - The Provincial Grand Secretary, the President, Immediate Past President, Vice Presidents, Treasurer, Gift Aid Co-ordinator and Secretary of the Association.

The Committee shall meet as and when the President may consider necessary or upon a requisition addressed to the Secretary and signed by either the Provincial Grand Master or his Deputy or by at least five members of the Committee.

At any meeting of the Committee, five members thereof shall form a quorum.

Application for funds:

Application for assistance of the Association may be made through the Master and Officers of any Lodge in the Province entitled to the benefits of membership. All applications are made to the Secretary of the Association, who shall then refer them to the Committee.

Induction and training of trustees

The Association has established induction procedures. New trustees are given information on charity and trustee responsibilities together with information about the Association, its history and its plans for the future and its constitution. Included is an explanation about how the Association’s affairs are conducted on a day-today basis. New trustees meet key committee members as part of the induction procedure.

The Trustees are familiar with charity governance through other work they do, and they ensure the Trustee body is updated as appropriate.

SHROPSHIRE MASONIC CHARITABLE ASSOCIATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Statement of trustees' responsibilities

The trustees are responsible for preparing the Trustees' Report and the 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 association and of the incoming resources and application of resources of the association for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the association and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the association and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees' r eport was approved by the Board of Trustees.

..............................

J R Weaver

Treasurer Dated: .........................

SHROPSHIRE MASONIC CHARITABLE ASSOCIATION

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF SHROPSHIRE MASONIC CHARITABLE ASSOCIATION

Opinion

We have audited the financial statements of Shropshire Masonic Charitable Association (the ‘association’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet and the notes to the financial statements, including a summary of 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).

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 association 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 association'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. 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.

In connection with our audit of the financial statements, 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

SHROPSHIRE MASONIC CHARITABLE ASSOCIATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF SHROPSHIRE MASONIC CHARITABLE ASSOCIATION

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:

Responsibilities of trustees

As explained more fully in the s tatement of trustees' r esponsibilities, 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 association’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 cease operations, or have no realistic alternative but to do so.

SHROPSHIRE MASONIC CHARITABLE ASSOCIATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF SHROPSHIRE MASONIC CHARITABLE ASSOCIATION

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:

We gained an understanding of the legal and regulatory framework applicable to the charity and the sector in which it operates, and considered the risk of acts by the charity that were contrary to applicable laws and regulations, including fraud.

We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Charities Act 2011 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management.

There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

We did not identify any key audit matters relating to irregularities, including fraud.

As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matter

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" ( as amended ) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.

SHROPSHIRE MASONIC CHARITABLE ASSOCIATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF SHROPSHIRE MASONIC CHARITABLE ASSOCIATION

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 auditors' 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.

Dyke Yaxley Limited

.........................

Chartered Accountants Statutory Auditor

1 Brassey Road Old Potts Way Shrewsbury Shropshire SY3 7FA

SHROPSHIRE MASONIC CHARITABLE ASSOCIATION

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

Current financial year
Unrestricted
Restricted Endowment
funds
funds
funds
2020
2020
2020
Notes
£
£
£
Income from:
Donations and legacies
3
32,308
24,446
-
Charitable activities
4
1,141
611
-
Investments
5
1,623
9
-
Total income
35,072
25,066
-
Expenditure on:
Charitable activities
6
60,541
29,768
-
Net gains/(losses) on investments
10
-
-
2,286
Net (outgoing)/incoming resources
before transfers
(25,469)
(4,702)
2,286
Gross transfers between funds
11
(10,000)
10,000
-
Net movement in funds
(35,469)
5,298
2,286
Fund balances at 1 January 2020
190,201
53,588
114,024
Fund balances at 31 December
2020
154,732
58,886
116,310		 Total
2020
£
56,754
1,752
1,632
60,138
90,309
2,286
(27,885)
-
(27,885)
357,813
329,928		 Total
2019
£
242,016
43,037
1,919
286,972
409,808
11,815
(111,021)
-
(111,021)
468,834
357,813

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

SHROPSHIRE MASONIC CHARITABLE ASSOCIATION

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Prior financial year
Unrestricted
Restricted Endowment
funds
funds
funds
2019
2019
2019
Notes
£
£
£
Income from:
Donations and legacies
3
11,198
230,818
-
Charitable activities
4
1,359
41,678
-
Investments
5
1,919
-
-
Total income
14,476
272,496
-
Expenditure on:
Charitable activities
6
34,655
375,153
-
Net gains/(losses) on investments
10
-
-
11,815
Net (outgoing)/incoming resources before
transfers
(20,179)
(102,657)
11,815
Gross transfers between funds
11
538
-
(538)
Net movement in funds
(19,641)
(102,657)
11,277
Fund balances at 1 January 2019
209,842
156,245
102,747
Fund balances at 31 December 2019
190,201
53,588
114,024		 Total
2019
£
242,016
43,037
1,919
286,972
409,808
11,815
(111,021)
-
(111,021)
468,834
357,813

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

SHROPSHIRE MASONIC CHARITABLE ASSOCIATION

BALANCE SHEET

AS AT 31 DECEMBER 2020

Notes
Fixed assets
Investments
12
Current assets
Cash at bank and in hand
Creditors: amounts falling due within
one year
13
Net current assets
Total assets less current liabilities
Capital funds
Endowment funds
14
Income funds
Restricted funds - general
15
Unrestricted funds		 2020
£
261,725
(3,276)		 £
71,479
258,449
329,928
116,310
58,886
154,732
329,928		 2019
£
291,807
(3,187)		 £
69,193
288,620
357,813
114,024
53,588
190,201
357,813

The financial statements were approved by the Trustees on .........................

.............................. J R Weaver Trustee

SHROPSHIRE MASONIC CHARITABLE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Charity information

The Shropshire Masonic Charitable Association, also known as the SMCA, is registered with the Charity Commission, registration number 216754. The registered office of the Association is Freemasons Hall, Crewe St., Shrewsbury, SY1 2HQ.

1.1 Accounting convention

The financial statements have been prepared in accordance with the association's by-laws, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The association is a Public Benefit Entity as defined by FRS 102.

The association has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling , which is the functional currency of the association. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the association has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the association.

1.4 Income

Income is recognised when the association is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the association has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the association has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

SHROPSHIRE MASONIC CHARITABLE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.5 Expenditure

Resources expended are analysed between the different categories of expenditure as follows:

Donations paid in furtherance of the charity's objectives include donations to other Masonic c harities, nonMasonic charities and individual beneficiaries.

Support and g overnance costs are those incurred in connection with organisational administration and compliance with constitutional and statutory requirements , set out in the notes to the accounts.

1.6 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.

1.7 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the association’s contractual obligations expire or are discharged or cancelled.

SHROPSHIRE MASONIC CHARITABLE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

2 Critical accounting estimates and judgements

In the application of the association’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted
Restricted
funds
funds
general
2020
2020
£
£
Donations and gifts
32,308
24,446
Legacies receivable
-
-
32,308
24,446
Donations and gifts
Central MCF
-
5,749
CERF
-
11,850
Fesitval 2019
-
-
Festival 2030
-
4,517
TLC Appeal
-
2,330
Shropshire MCF
32,308
-
32,308
24,446
Legacies receivable
Shropshire MCF
-
-
-
-		 TotalUnrestricted
Restricted
funds
funds
general
2020
2019
2019
£
£
£
56,754
7,848
230,818
-
3,350
-
56,754
11,198
230,818
5,749
-
10,235
11,850
-
-
-
-
216,901
4,517
-
-
2,330
-
3,682
32,308
7,848
-
56,754
7,848
230,818
-
3,350
-
-
3,350
-		 Total
2019
£
238,666
3,350
242,016
10,235
-
216,901
-
3,682
7,848
238,666
3,350
3,350

SHROPSHIRE MASONIC CHARITABLE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

4 Charitable activities

Central MCF Festival 2019
TLC Appeal
Shropshire
MCF
2020
2020
2020
2020
£
£
£
£
Gift Aid adjustment
-
-
-
-
Ticket sales/
sponsorship
-
-
-
-
Merchandise
-
611
-
218
Misc Receipts
-
-
-
923
-
611
-
1,141
Analysis by fund
Unrestricted funds
-
-
-
1,141
Restricted funds - general
-
611
-
-
-
611
-
1,141		 Total
2020
£
-
-
829
923
1,752
1,141
611
1,752		 Total
2019
£
177
35,935
6,291
634
43,037
1,359
41,678
43,037

For the year ended 31 December 2019

Central MCF Festival 2019
TLC Appeal
Shropshire
MCF
£
£
£
£
Gift Aid adjustment
177
-
-
-
Ticket sales/sponsorship
-
35,935
-
-
Merchandise
-
5,566
-
725
Misc Receipts
-
-
-
634
177
41,501
-
1,359
Analysis by fund
Unrestricted funds
-
-
-
1,359
Restricted funds - general
177
41,501
-
-
177
41,501
-
1,359		 Total
2019
£
177
35,935
6,291
634
43,037
1,359
41,678
43,037

SHROPSHIRE MASONIC CHARITABLE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

5 Investments

Unrestricted
Restricted
funds
funds
general
2020
2020
£
£
Deposit interest
153
9
Dividend income
1,470
-
1,623
9		 TotalUnrestricted
funds
2020
2019
£
£
162
584
1,470
1,335
1,632
1,919

6 Charitable activities

Festival Management
Merchandise
Direct Costs
Donations to Relief Chest
Donations
Share of support costs
(see note 7)
Share of governance costs
(see note 7)
Analysis by fund
Unrestricted funds
Restricted funds - general		 CERF
2020
£
-
-
-
-
20,283
20,283
-
-
20,283
-
20,283
20,283		 Festival
2019
TLC Appeal Shropshire
MCF
2020
2020
2020
£
£
£
-
-
-
6,893
-
-
-
2,592
-
-
-
-
-
-
55,850
6,893
2,592
55,850
-
-
942
-
-
3,749
6,893
2,592
60,541
-
-
60,541
6,893
2,592
-
6,893
2,592
60,541		 Total
2020
£
-
6,893
2,592
-
76,133
85,618
942
3,749
90,309
60,541
29,768
90,309		 Total
2019
£
45,627
2,842
4,352
323,409
28,293
404,523
1,469
3,816
409,808
34,655
375,153
409,808

SHROPSHIRE MASONIC CHARITABLE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

6
Charitable activities
For the year ended 31 December 2019
Central MCF
£
Festival Management
-
Merchandise
-
Direct Costs
-
Donations to Relief Chest
18,590
Donations
-
18,590
Share of support costs (see note 7)
-
Share of governance costs (see note 7)
-
18,590
Analysis by fund
Unrestricted funds
-
Restricted funds - general
18,590
18,590		 (Continued)
Festival
2019
TLC Appeal Shropshire
MCF
Total
2019
£
£
£
£
45,627
-
-
45,627
1,765
-
1,077
2,842
-
4,352
-
4,352
304,819
-
-
323,409
-
-
28,293
28,293
352,211
4,352
29,370
404,523
-
-
1,469
1,469
-
-
3,816
3,816
352,211
4,352
34,655
409,808
-
-
34,655
34,655
352,211
4,352
-
375,153
352,211
4,352
34,655
409,808

SHROPSHIRE MASONIC CHARITABLE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

7 Support costs

Support
costs
Governance
costs
£
£
Printing/stationery/year
book
6
-
Rent
570
-
Bank charges
-
-
Miscellaneous
366
-
Audit fees
-
3,396
Meeting costs
-
-
Secretary expenses
-
353
942
3,749
Analysed between
Charitable activities
942
3,749		 2020
Support
costs
Governance
costs
£
£
£
6
449
-
570
555
-
-
30
-
366
435
-
3,396
-
3,120
-
-
527
353
-
169
4,691
1,469
3,816
4,691
1,469
3,816		 2019
£
449
555
30
435
3,120
527
169
5,285
5,285

The trustees have decided to meet all governance and support costs from unrestricted funds and so no allocation or charge is made to restricted funds.

Governance costs includes payments to the auditors of £ 3, 396 (2019- £ 3,120 ) for audit fees.

8 Trustees

A total of £420 was reimbursed to members of the trustees committee in the year (2019: £169). These payments were primarily for printing, postage and stationery costs incurred. No members of the committee or anyone connected to them have received, or are due to receive, any remuneration for the year directly or indirectly from the Associations' funds (2019: none).

9 Employees

There were no employees during the year.

10 Net gains/(losses) on investments

Endowment Endowment
funds funds
2020 2019
£ £
Revaluation of investments 2,286 11,815

11 Transfers

A transfer of £10,000 was made in the year from the unrestricted fund "Shropshire MCF" to the restricted fund "CERF" to start the fund.

SHROPSHIRE MASONIC CHARITABLE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

12 Fixed asset investments

Listed
investments
£
Cost or valuation
At 1 January 2020 69,193
Valuation changes 2,286
At 31 December 2020 71,479
Carrying amount
At 31 December 2020 71,479
At 31 December 2019 69,193

The legacy for the Pointon Forest Glen Fund was received in the form of cash and invested by Messrs Tilney & Co., and has been provided for in these accounts at market value. The original cost of the investment was £10,059.

13 Creditors: amounts falling due within one year

Notes
Deferred income
Accruals and deferred income		 2020
£
-
3,276
3,276		 2019
£
67
3,120
3,187

SHROPSHIRE MASONIC CHARITABLE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

14 Endowment funds

Endowment funds represent assets which must be held permanently by the association. Income arising on the endowment funds can be used in accordance with the objects of the association and is included as unrestricted income. Any capital gains or losses arising on the assets form part of the fund.

Balance at
1 January 2019

£
Permanent endowments
EAS Barnes
32,873
Pointon Forest
Glen Trust
69,336
Expendable endowments
Boyce Trust
538
102,747		 Movement in funds
Incoming
resources
Resources
expended
Transfers Revaluations
gains and
losses
Balance at
1 January 2020

£
£
£
£
£
-
-
-
-
32,873
-
-
-
11,815
81,151
-
-
(538)
-
-
-
-
(538)
11,815
114,024		 Movement in funds
Incoming
resources
Resources
expended
Transfers Revaluations
gains and
losses
Balance at
31 December
2020
£
£
£
£
£
-
-
-
-
32,873
-
-
-
2,286
83,437
-
-
-
-
-
-
-
-
2,286
116,310

SHROPSHIRE MASONIC CHARITABLE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

15 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at
1 January 2019

£
Central MCF
50,663
CERF
-
Festival 2019
95,920
Festival 2030
-
TLC Appeal
9,662
156,245		 Movement in funds
Incoming
resources
Resources
expended
£
£
10,412
(18,590)
-
-
258,402
(352,211)
-
-
3,682
(4,352)
272,496
(375,153)		 Transfers
Balance at
1 January 2020

£
£
1,210
43,695
-
-
(1,210)
901
-
-
-
8,992
-
53,588		 Movement in funds
Incoming
resources
Resources
expended
£
£
5,749
-
11,850
(20,283)
611
(6,893)
4,526
-
2,330
(2,592)
25,066
(29,768)		 Transfers
Balance at
31 December
2020
£
£
(5,381)
44,063
10,000
1,567
5,381
-
-
4,526
-
8,730
10,000
58,886

SHROPSHIRE MASONIC CHARITABLE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

16
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
Endowment
funds
2020
2020
2020
£
£
£
Fund balances at 31 December 2020 are
represented by:
Investments
-
-
71,479
Current assets/(liabilities)
154,732
58,886
44,831
154,732
58,886
116,310		 TotalUnrestricted
funds
Restricted
funds
Endowment
funds
2020
2019
2019
2019
£
£
£
£
71,479
-
-
69,193
258,449
190,201
53,588
44,831
329,928
190,201
53,588
114,024		 Total
2019
£
69,193
288,620
357,813

SHROPSHIRE MASONIC CHARITABLE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

17 Related party transactions

Transactions with related parties

A number of the Association's trustees are trustees of other charities which have received donations from the Association. There were no other related party transactions (2019: None).