## **THE FREEMASONS’ FUND FOR SURGICAL RESEARCH** **TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS** **YEAR ENDED 31 DECEMBER 2022** ## **THE FREEMASONS’ FUND FOR SURGICAL RESEARCH** ## I N D E X ## **Year ended 31 December 2022** ||**Page**| |---|---| |General information|2| |Trustees’ annual report|3| |Auditors’ report|7| |Statement of financial activities|10| |Balance sheet|11| |Notes to the financial statements|12| |Appendices (These do not form part of the statutory financial statements)|| |Investment summary|Appendix 1| |History of grants paid to the Royal College of Surgeons of England|Appendix 2| 1 ## **THE FREEMASONS’ FUND FOR SURGICAL RESEARCH** ## G E N E R A L I N F O R M A T I O N **Year ended 31 December 2022** |**Charity Registration number**|252951| |---|---| |**Patron**|HRH The Duke of Kent KG| |**Trustees**|Justinian Ash| ||Julian Soper| ||Jolyon Berry| ||Antony Narula FRCS(Eng)| ||Paul Copsey| ||Howard Sabin FRCS(Eng), FRCS(Ed)| ||Jonathan Randall| |**Registered office**|22 Chancery Lane| ||London| ||WC2A 1LS| |**Auditors**|Dixon Wilson Audit Services LLP| ||22 Chancery Lane| ||London| ||WC2A 1LS| |**Secretary**|Michael Messent| |**Principal address**|7 Hansard Place| ||Romsey| ||Hampshire| ||SO51 0EL| |**Investment managers and advisers**|Cazenove Capital Management Limited| ||1 London Wall Place| ||London| ||EC2Y 5AU| |**Bankers**|Coutts & Co| ||St Martin’s Office| ||440 Strand| ||London| ||WC2R 0QS| 2 ## **THE FREEMASONS’ FUND FOR SURGICAL RESEARCH** T R U S T E E S ’ A N N U A L R E P O R T ## **Year ended 31 December 2022** This report should be read in conjunction with the information given on page 2. ## **Creation** The Fund was created in 1967 as a charitable foundation by contributions from Freemasons of the English Constitution to commemorate the 250th Anniversary of the original Grand Lodge Meeting. ## **Governing instrument** The governing instrument is a Declaration of Trust dated 8 May 1967. ## **Objects and public benefit** The Trustees have considered the guidance in respect of public benefit given by the Charity Commission in accordance with the requirements of the Charities Act 2011. The object of the Fund as set out in paragraph 5 of the Declaration of Trust, as amended by resolution of the Trustees dated 20 May 2014, is to hold the Trust Fund and the income thereof upon trust firstly to pay therefrom all the proper costs and expenses incurred by the Trustees in administering the Charity and the property thereof and subject thereto to apply the same (whether by payments from capital or income) in furthering, in conjunction with the Royal College of Surgeons of England (a registered charity no. 212808), research in the science of surgery provided that in no accounting year shall the expenditure of the Trustees towards the Royal College exceed five per centum of the capital value of the Trust Fund calculated at the end of the accounting year immediately prior to incurring such expenditure. Trust capital is held in perpetuity, subject only to the deduction of all proper costs and expenses incurred by the Trustees should these not be covered by income. All grants are made to the Royal College of Surgeons of England in accordance with the object of the Trust. The recipient charity has confirmed that, in their opinion, its activities satisfy the public benefit test. The Trustees are satisfied that this is for the public benefit and that there is no detriment or harm that might arise from carrying out this object. No person or body receives any private benefit other than as a beneficiary. ## **Organisational structure** The Secretary has overall control of the general conduct of the Fund's activities and is responsible for the implementation of the policies of the Trustees. ## **Trustees’ policies** The Trustees' policies are: (a) to invest trust capital in order to provide a total return to further the trust objective. - (b) to give grants to the Royal College of Surgeons of England. ## **Trustees** The names of the individuals who served as Trustees during the period are shown on page 2. The power to appoint new Trustees is vested in the Grand Master of the United Grand Lodge of England. There must be at least three and no more than seven Trustees. The Trustees have unrestricted power of investment. The Trustees meet at least twice each year to consider the Charity's activities and performance. 3 ## **THE FREEMASONS’ FUND FOR SURGICAL RESEARCH** T R U S T E E S ’ A N N U A L R E P O R T ## **Year ended 31 December 2022** ## **Reserves** In line with the guidance issued by the Charity Commission, the Trustees have reviewed the need for reserves. The Trustees seek to apply all income in pursuance of the stated objects of the Fund as soon as is reasonably prudent. The present intention of the Trustees is to make annual grants to the Royal College of Surgeons of England sufficient to contribute to the support of four research fellowships. The Trustees and the College seek to fund a consistent number of research fellowships, year on year, and, to achieve this objective, the Trustees may have to resort to capital, within the permitted limit. The extent to which capital has been expended over the years is reflected in the figures of net current assets as set out in note 13 on page 15. The Trustees monitor the level of reserves regularly. ## **Connected charities** There are no connected charities. ## **Investment policy** It is the policy of the Trustees to invest widely and to be diversified by asset class, by fund manager and by security. Asset classes can include cash, bonds, equities, property, hedge funds, structured products, private equity, commodities and any other asset class that is deemed suitable for the Fund. From May 2022 and currently the benchmark ranges for asset allocation are 55-80%, fixed interest 5-25%, alternative investments 5-25%, private equity assets 4-10% and cash 0-10%. The investment policy was updated in the year in light of market developments in order to achieve the long term objective which is to generate a total return of inflation + 4%. The objective is to achieve growth in capital and income. Within that broad objective, the aim of the Trustees is to obtain an annual total return sufficient to allow the disbursement of £260,000 or thereabouts from these investments, after covering expenses. The Trustees seek to produce the best possible financial return in order to achieve the greatest amount of money available for the furtherance of medical research, whilst investing in a manner consistent with the Fund’s aims and avoiding investing in businesses which may reasonably be regarded as undertaking activities which are injurious to individuals or society in general. The Trustees have resolved to invest in ESG funds with a weighting of 5-10%, providing they meet all other investment criteria. It is recognised that it is unrealistic to have zero tolerance to holdings in securities due to the way some investments are held within funds and because businesses are reclassified from time to time. As shown in the following table, some tolerance of restricted businesses shall be permitted, however there shall be no direct investment in certain businesses, as specified: ||**Direct investment**|**Total exposure in**
**any one fund**|**Total exposure**
**overall**| |---|---|---|---| |**Tobacco**|No|7.5%|2.5%| |**Gambling**|No|7.5%|2.5%| |**Pornography**|No|2.5%|1%| |**Predatory Lending**|No|2.5%|1%| |**Fossil Fuels**|Yes|10%|5%| The Trustees have also resolved to invest in private assets to a limited extent in order to diversify asset classes. The Trustees have appointed Cazenove Capital Management Limited ("Cazenove") as investment advisers. Cazenove have discretion to change the investments without the specific instructions of the Trustees. Some funds are placed on deposit with Cazenove, otherwise investments are to be held in pooled funds. The performance benchmarks are the FTSE All Share Index for equity funds, the FTSE Government All Stocks Index for fixed interest funds, and 7 day LIBID for alternative investments. Cazenove report four times a year to the Trustees on the investment performance of the Fund and the investment policy is reviewed by the Trustees at least once a year. 4 ## **THE FREEMASONS’ FUND FOR SURGICAL RESEARCH** T R U S T E E S ’ A N N U A L R E P O R T ## **Year ended 31 December 2022** ## **Financial review** During the year investment income totalled £151,318 (2021 - £128,978). 2022 included a donation of £14,225 (2021 - £4,935), received from individual donors. All donations were treated as additions to the endowment (capital) fund with the aim of increasing the value of annual grants to the Royal College of Surgeons of England. Grants amounting to £260,000 (2021 - £260,000) were made by the Trustees to the Royal College of Surgeons of England. At the year-end the investments, excluding cash, were valued at £6,776,613 (2021 - £7,674,401). All investments are held in accordance with the Declaration of Trust. The unrestricted fund shows a total deficit of £267,904 (2021 – £265,189 (as restated)). The Trustees have a realistic expectation that future income will be received to cover the deficit. A transfer of £267,904 from the restricted fund will be made to clear this deficit, as stated in note 13 of the accounts. Cazenove levied investment management charges in the year amounting to £23,943 (2021 - £25,958). In accordance with the terms of an Order granted by the Charity Commissioners dated 20 May 2011, the Trustees have identified the unapplied total return at 31 December 2012 based on the difference between the net funds at that date less the initial capital of £582,769. Additions to the unapplied total return have been calculated for subsequent accounting periods based on the excess total return less grants and expenses, as set out in note 13 to the financial statements. An application of the unapplied total return has been made in the year to 31 December 2022, in respect of the shortfall of income of £265,189 (as restated) arising for the year ended 31 December 2021. The Trustees concluded that it was not necessary to obtain advice regarding the use of power conferred on the Trustees by the Order. ## **Financial statements** The financial statements are set out on pages 10 to 16. They have been drawn up in compliance with the relevant provisions of the Charities Act 2011 and with the Declaration of Trust. ## **Statement of Trustees’ responsibilities** The Trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. 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 Charity's financial activities during the year and of its financial position at the end of the year. In preparing financial statements giving a true and fair view, the Trustees should follow best practice and: - select suitable accounting policies and then apply them consistently; - observe the methods and principles of the Charities SORP; - make judgments and estimates that are reasonable and prudent; - state whether applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation. 5 THE FftEEMASONS• FUND FOR SURGICAL RESEARCH TRUSTEES ANNUAL REPOR T Ye•r •nded 31 D0￿mber 2022 The Tru$tee5 are re*¢)rsslble for keeplng ac¢ountlng records which dlsdose with reasonable accuracy the financlal P05ityon of th¢ d￿rIty and whlch enabk them to ensure that the fI￿ncl31 statemenrs ¢ompty wirh the regu13dons made under the Charides Act 2011. They are also responslbl¢ for safeguJrdln8 the ¥sets of the Charity #nd hence for uking reasonable steps for the prevention and det¢ctlon of fraud and other Irregularitie On tehaw of the Tru 15 May 2023 ## **THE FREEMASONS’ FUND FOR SURGICAL RESEARCH** A U D I T O R S ’ R E P O R T ## **Year ended 31 December 2022** ## **INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE FREEMASONS’ FUND FOR SURGICAL RESEARCH** ## **Opinion** We have audited the financial statements of The Freemasons’ Fund For Surgical Research (the ‘charity’) for the year ended 31 December 2022 which comprise the statement of financial activities, balance sheet, and 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). In our opinion, the financial statements: - give a true and fair view of the state of the charity’s affairs as at 31 December 2022 and of its incoming resources and application of resources for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Charities Act 2011. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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. 7 ## **THE FREEMASONS’ FUND FOR SURGICAL RESEARCH** A U D I T O R S ’ R E P O R T ## **Year ended 31 December 2022** ## **Matters on which we are required to report by exception** We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion: - the information given in the financial statements is inconsistent in any material respect with the trustees report; or - sufficient accounting records have not been kept; or - the financial statements are not in agreement with the accounting records; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of trustees** As explained more fully in the trustees’ responsibilities statement set out on page 5, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. ## **Auditor’s responsibilities for the audit of the financial statements** We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in 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 by considering, amongst other things, 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 assessed level of risk, but recognised 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 focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to UK Charity Law and UK financial reporting standards application for UK charitable trusts. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of the investment advisors. 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 management that represented a risk of material misstatement due to fraud. 8 ## **THE FREEMASONS’ FUND FOR SURGICAL RESEARCH** A U D I T O R S ’ R E P O R T ## **Year ended 31 December 2022** 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. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. ## **Use of our report** This report is made solely to the charity’s trustees, as a body, in accordance with regulations made under section 154 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed. ## **Other matters** The corresponding information in respect of the year ended 31 December 2021 presented in these financial statements is unaudited. ……………………………………… Dixon Wilson Audit Services LLP, Statutory Auditor 22 Chancery Lane London WC2A 1LS > 1 June 2023 Dixon Wilson Audit Services LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006. 9 ## **THE FREEMASONS’ FUND FOR SURGICAL RESEARCH** ## S T A T E M E N T O F F I N A N C I A L A C T I V I T I E S ## **Year ended 31 December 2022** |**Unrestricted**
**Endowment**
**Note**
**Funds**
**Funds**
**£**
**£**
**Income and expenditure**
**Income and endowments from:**
Donations and legacies
4
-
14,225
Investments
-
151,318


**Total**
-
165,543


**Expenditure on:**
Raising funds
5
-
24,389
Charitable activities
6
267,904
-


**Total resources expended**
267,904
24,389


**Net (outgoing)/incoming resources**
**before other recognised gains and losses**
(267,904)
141,154
**Other recognised (losses)/gains:**
Net investment (losses)/gains in year
9
-
(598,764)


Net movement in funds for the year
(267,904)
(457,610)
Transfer between funds
13
265,189
(265,189)
Total (deficit)/funds brought forward
(265,189)
7,850,332


Total (deficit)/funds carried forward (page 11)
(267,904)
7,127,533

|**2022**
**Unrestricted**
**Endowment**
**Total**
**Funds**
**Funds**
**£**
**£**
**£**
14,225
_-_
_4,935_
151,318
_-_
_128,976_



165,543
_-_
_133,911_



24,389
_-_
_25,958_
267,904
_265,189_
_-_



292,293
_265,189_
_25,958_



(126,750)
_(265,189)_
_107,953_
(598,764)
_-_
_709,690_



(725,514)
_(265,189)_
_817,643_
-
_19,855_
_(19,855)_
7,585,143
_(19,855)_
_7,052,544_



6,859,629
_(265,189)_
_7,850,332_


||**2021**
**Total**
**£**
_4,935_
_128,976_

_133,911_

_25,958_
_265,189_

_291,147_

_(157,236)_
_709,690_

_552,454_
_-_
_7,032,689_

_7,585,143_
| |---|---|---|---| ||||| All amounts are in respect of continuing operations. 10 THE FREEMASONS, FUND FOR SURGICAL RESEARCH 8ALANCE SHEET At 31 D•¢ember 2022 Note 2022 2021 Flxed ￿￿ett Inve$tments at m4rket ￿ue Current #Met5 Debtors Cash 6,965.591 7.679,782 10 1.039 164.098 1,620 43, 742 45.362 165.137 CrÈdltors: amounts falllng du• wlthln one y••r Net curr•nt Ilabllltlej Total n•t 4JsrtJ {271.099) 1105,962) 6.859.629 (140.OQI) (94.639) 7,585,141 Represented br. Capltal fvnd5- Endowrrnht Income fun¢Js- Unrestrkted 13 7,127,533 1267.9041 6.859,629 7,850.322 1265,189) 7.585,143 The flnanclal $tatem¢nts on palei 10 to 16 w*re approved by th• Trustees on 15 May 2023. IAN ste• ## **THE FREEMASONS’ FUND FOR SURGICAL RESEARCH** N O T E S T O T H E F I N A N C I A L S T A T E M E N T S ## **Year ended 31 December 2022** ## **1. General information** The Charity is an unincorporated trust. The principal address of the Charity is 7 Hansard Place, Romsey, Hampshire SO51 0EL. ## **2. Accounting policies** ## **Basis of accounting** The financial statements have been prepared 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) (effective October 2019) – (Charities SORP (FRS 102)). The Freemasons’ Fund for Surgical Research meets the definition of a public benefit entity under FRS 102. ## **Preparation of the accounts on a going concern basis** The Trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern. These financial statements have been prepared under the historical cost convention modified to include the revaluation of investments. The financial statements are presented in Sterling which is the functional currency of the company and rounded to the nearest £. ## **Income recognition** All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received, and the amount of income receivable can be measured reliably. Donations are recognised once the Charity has entitlement to the donations, it is certain that the donations will be received, and the monetary value of the donations can be measured with sufficient reliability. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. ## **Expenditure recognition** Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Charity to that expenditure, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. For grants payable, this is the point at which the recipient is notified. All expenditure is accounted for on an accruals basis. ## **Investments** Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year. Cash balances held as part of a fixed asset investment portfolio are presented as part of fixed assets. (continued) 12 ## **THE FREEMASONS’ FUND FOR SURGICAL RESEARCH** N O T E S T O T H E F I N A N C I A L S T A T E M E N T S ## **Year ended 31 December 2022** ## **2. Accounting policies (continued)** ## **Realised gains and losses** All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year-end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities. ## **Financial instruments** Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities, or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. ## **Restatement of prior year accounts** The accounts have been restated for a correction to the presentation of the income under the Total Return requirements per the SORP. Investment income has been restated to be shown in the Endowment Funds. This has resulted in a change to the unrestricted fund brought forward of £128,976, being the investment income received in the year ended 31 December 2021. ## **3. Staff numbers** The average number of persons employed by the charity during the year was 0 (2021 - 0). |**4.**
**Voluntary income**
Other donations|**2022**
**£**
14,225
|**2021**
**£**
_4,935_
| |---|---|---| |**5.**
**Expenditure on raising funds**
Investment management charges
Loss on foreign exchange movements|**2022**
**£**
23,943
446

24,389
|**2021**
**£**
_25,958_
_-_
| |||_25,958_
| 13 ## **THE FREEMASONS’ FUND FOR SURGICAL RESEARCH** N O T E S T O T H E F I N A N C I A L S T A T E M E N T S ## **Year ended 31 December 2022** |**6.**
**Expenditure on charitable activities**
**Note**
Grants to Royal College of Surgeons of England
**Governance costs:**
Accountancy, audit and independent examination
7
Bank charges
LEI provider fee|**2022**
**£**
260,000
7,537
367
-

267,904
|**2021**
**£**
_260,000_
_4,550_
_494_
_145_
| |---|---|---| |||_265,189_
| |||| |**7.**
**Total resources expended has been stated after charging**
Accountancy
Audit
Independent examination|**2022**
**£**
3,337
4,200
-

7,537
|**2021**
**£**
_2,990_
_-_
_1,560_
| |||_4,550_
| ## **8. Trustees** Trustees are not remunerated, and no expenses have been reimbursed. |**9.**
**Investments**
Quoted investments:
Carrying value (fair value) at beginning of year
Less: proceeds of disposals
Add: cost of additions
Net (loss)/gain for the year
Carrying value (fair value) at end of year
Cash
Total fixed asset investments
Quoted investments at cost|**2022**
**£**
7,674,401
(1,729,620)
1,430,596
(598,764)

6,776,613
188,978

6,965,591

5,861,527
|**2021**
**£**
_7,004,427_
_(1,790,334)_
_1,750,618_
_709,690_
| |---|---|---| |||_7,674,401_
_5,381_
| |||_7,679,782_
| |||_5,874,747_
| |||| |**10.**
**Debtors**
Accrued income|**2022**
**£**
1,039
|**2021**
**£**
_1,620_
| 14 ## **THE FREEMASONS’ FUND FOR SURGICAL RESEARCH** N O T E S T O T H E F I N A N C I A L S T A T E M E N T S ## **Year ended 31 December 2022** ## **11. Creditors: amounts falling due within one year** |Grants payable
Accruals|**2022**
**£**
260,000
11,099

271,099
|**2021**
**£**
_130,000_
_10,001_

_140,001_
| |---|---|---| ## **12. Financial assets and liabilities** The following are financial assets that qualify as basic financial instruments and are initially recognised at their transaction value and subsequently measured at their fair value through income and expenditure: |**Financial assets**
Investments excluding cash||**2022**
**£**
6,776,613|**2021**
**£**
_7,674,401_
| |---|---|---|---| ||||| |**13.**
**Analysis of net assets between funds**
Unapplied total return
Capital funds -Endowment
Total Endowment funds
Unrestricted funds
Total at 31 December 2022|**Fixed**
**assets**
**£**
3,850,167
3,115,424

6,965,591
-

6,965,591
|**Net**
**current**
**assets**
**£**
161,942
-

161,942
(267,904)

(105,962)
|**Total**
**£**
4,012,109
3,115,424

7,127,533
(267,904)

6,859,629
| At 31 December 2012, the Trustees identified that the Trust had funds of £2,742,349 representing unapplied total return, calculated as the total net assets of £3,325,118 at that date, less the initial capital of £582,769. Since that date, the following movements have taken place: |At 1 January
Investment return: dividends and interest
Investment return: realised and unrealised (losses)/gains
Investment management fees
Allocated to trust for application (page 10)
At 31 December|**2022**
**£**
4,749,133
151,318
(598,764)
(24,389)
(265,189)

4,012,109
|**2021**
**£**
_3,956,280_
128,976
_709,690_
_(25,958)_
_(19,855)_

_4,749,133_
| |---|---|---| After the year-end the Trustees resolved to make a transfer of £267,904 from Endowment funds to Unrestricted funds as permitted under the constitution of the Fund. 15 ## **THE FREEMASONS’ FUND FOR SURGICAL RESEARCH** N O T E S T O T H E F I N A N C I A L S T A T E M E N T S ## **Year ended 31 December 2022** ## **14. Capital funds – Endowment** Endowment funds which at 31 December 2022 amounted to £7,127,533 arise from contributions received as follows from the Supreme Grand Chapter: |from the Supreme Grand Chapter:|| |---|---| |Prior to 31 December 1969|£582,769| |During the year ended 31 December 2014|£2,424,900| |During the year ended 31 December 2016|£35,000| |During the year ended 31 December 2017|£22,000| |During the year ended 31 December 2018|£27,733| |Further gifts to the endowment have been received as follows from other individuals:|| |During the year ended 31 December 2019|£150| |During the year ended 31 December 2020|£312| |During the year ended 31 December 2021|£4,935| |During the year ended 31 December 2022|£14,225| In light of the capital contribution from the Supreme Grand Chapter in May 2014 and the value of the Fund immediately prior to its receipt, it was resolved by the Trustees that future Freemasons’ Fellowships, tenable at The Royal College of Surgeons, shall henceforth be attributed to the United Grand Lodge of England and to the Supreme Grand Chapter in the proportion of 3:2 with effect from 1 January 2015. Of the four Fellowships funded in the year ended 31 December 2022, two were attributed to the United Grand Lodge of England. The position since 1 January 2015 is as follows: |**Year**|**Proportion**|**United Grand Lodge**|**Supreme Grand Chapter**|**Total**| |---|---|---|---|---| |2015|2:2|2|2|4| |2016|3:1|3|1|4| |2017|3:2|3|2|5| |2018|2:2|2|2|4| |2019|2:2|2|2|4| |2020|2:2|2|2|4| |2021|2:2|2|2|4| |2022|3:2|3|2|5| ## **15. Related party transactions** There have been no related party transactions in the year. 16