OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2020-12-31-accounts

Charity Number 279313

THE DURHAM MASONIC BENEVOLENT FUND

Operating as

BENEVOLENT COMMITTEE OF THE PROVINCE OF DURHAM

REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2020

BENEVOLENT COMMITTEE OF THE PROVINCE OF DURHAM

FINANCIAL STATEMENTS

PERIOD ENDED 31 DECEMBER 2020

CONTENTS PAGE
Legal and administrative information 1
Chairman’s report 2 to 3
Trustees annual report 4 to 7
Independent auditors’ report 8 to 10
Statement of financial activities 11
Balance sheet 12
Notes to the financial statements 13 to 23

BENEVOLENT COMMITTEE OF THE PROVINCE OF DURHAM

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees ! Durham Benevolence Limited General Purposes Committee Chairman * S. C. Steele Vice Chairman * M. S. Shaw Treasurer * S. A. Willis Secretary * T. F. Gittins Assistant Secretary G. Elgie Members* + G. Tilley == K. Williams == D. Dorward S. Bell == S. Hunter + P. Ross = C. Katsambis + I. K. Carter M. Rankin + D. Maw R. Donmall

!
Custodian trustee
Principal Office Auditors Solicitors
8 The Esplanade Torgersens Peter Ross and Co
Sunderland Chartered Accountants 2 Front Street
Tyne & Wear & Registered Auditors Jasmine Villas
SR2 7BH Somerford Buildings Whickham
Norfolk Street Newcastle upon Tyne
Sunderland NE16 4JH
SR1 1EE
Bankers
National Westminster Bank Plc Virgin Money Lloyds Bank plc
52 Fawcett Street 43 Fawcett Street 54 Fawcett Street
Sunderland Sunderland Sunderland
SR1 1SB SR1 1SA SR1 1SF
Stockbrokers Housing Management
Rathbones Brewin Dolphin Nest Egg Homes
50 George Square 12 Smithfield Street 49 Mandale Road
Glasgow London Stockon-on-Tees
G2 1EH EC1A 9LA Thornaby
Cleveland TS17 6AD
Sheltered Housing Developments
Peter Stracey House Boundary Court
Ebdon Lane Kingsway
Sunderland SR6 9AF Bishop Auckland DL14 7JE

- 1 -

BENEVOLENT COMMITTEE OF THE PROVINCE OF DURHAM

CHAIRMAN’S REPORT PERIOD ENDED 31 DECEMBER 2020

I am delighted to present my second annual report as Chairman of Durham Benevolence. This report covers a period of 15 months instead of the usual 12 months and brings our new annual reporting date of 31[st] December in line with the reporting dates of the Provincial Grand Lodge of Durham.

The nine months leading up to 31[st] December have been particularly challenging and have been dominated by the COVID-19 pandemic. Sadly, the pandemic has had an adverse effect on the physical, mental, and emotional well-being of many individuals and families as well as effecting a wide range of businesses and organisations. Despite these adverse effects, I am proud to report that Durham Benevolence has risen to the challenges posed and has continued to provide support to many individuals, families and organisations that have suffered. In addition to providing much needed support, we have also seen an increase in our reserves.

The audited accounts for the 15 months to 31[st] December 2020 show an overall increase in total funds realized from £8,619,628 to £8,906,801. The increase of £287,173 reflects an increase in our income, particularly from donations and legacies which rose from £27,441 to £226,266.

Grant Giving

The pandemic had a major impact on our grant giving during the last nine months of the reporting period. For the first six months of the 15-month period, we continued to provide Youth Grants and Community Support Grants in line with our normal working practices. However, these activities had to change at the beginning of the pandemic due to the restrictions imposed by the “lock down” which precluded some individual-based activities, team-based activities, and travel. Despite these problems, we made Youth Grants and Community Support Grants of £40,539 during the reporting period (£49,530 in 2019) as well as grants for Defibrillators (£3,000) and Emergency Support grants (£2,650).

From March 2020, our emphasis switched to providing COVID-19 support and, in early April, our Provincial Grand Master made the pledge that Durham Benevolence would allocate £50,000 for COVID-19 support. This pledge was magnificently supported by Universities Lodge No. 2352 who donated a further £50,000. By 31st December 2020, we had donated £41,234 in COVID-19 grants and we have continued to make further grants during 2021. The Benevolence Covid sub-committee was set-up in April 2020 (meeting via Zoom) to swiftly and efficiently deal with finance applications related to Covid. Many of the successful brants have been widely reported and gratefully received.

Donations and Investments

Perhaps unsurprisingly, our income from donations fell during the reporting period as lodges could not meet and struggled to raise funds during the lockdown period. Donations from lodges (excluding the £50,000 from Universities Lodge for COVID-19 relief) fell from £27,441 to £10,563 in the reporting period. This downturn was more than matched by a legacy of £155,703 received from the estate of WBro Keith Sumby a member of Ellison Hall Lodge No 7165 and Hadrian Lodge No 1970 and a legacy of £10,000 received from the estate of WBro Sidney Pattison, a member of Shipcote Lodge No.3626.

The value of our investment portfolio increased from £930,742 to £960,885 albeit after we had invested a further £90,000 looking to take advantage of long-term good value in the market. We continue to take advice from our investment advisors and will continue to seek long term growth of our investments.

Property

We continue to invest for the long term in our properties and several properties at Peter Stacey House were refurbished during the period. It is only right that we thank Stan Hunter, Chairman of our Estates Committee, Dave Dorward, Liaison Officer at Peter Stacey House and Christos Katsambis and Jack Richardson, Liaison Officers at Boundary Court. Nest Egg Homes continue to manage our properties and we maintain a good working relationship with them.

- 2 -

BENEVOLENT COMMITTEE OF THE PROVINCE OF DURHAM

CHAIRMAN’S REPORT PERIOD ENDED 31 DECEMBER 2020

None of the many achievements during the reporting period could have happened without the generous contributions of our many members, the hard work of our committee members and the unstinting support of the staff at Provincial Office. I offer my grateful thanks to every person who has helped during very trying times.

I believe that Durham Benevolence remains in a very good financial position after a very difficult time for all concerned and well positioned to deal with any future problems that may be encountered. I also believe that we still have the right culture to deliver our aims and objectives.

In concluding this report, I would like to thank all those who have ensured a regular flow of articles to the Provincial Communications Team so that the breadth and depth of our support can be recognised. Finally, I express my sincere appreciation to all the brethren of the Province of Durham, members of the General Purposes Committee and the Benevolent Committee representatives for their time, energy, and dedication during the past year and for the insights and expertise they each bring to the activities of the Benevolent Committee.

…………………………………….. Craig Steele Chairman

Date:

- 3 -

BENEVOLENT COMMITTEE OF THE PROVINCE OF DURHAM

TRUSTEES ANNUAL REPORT PERIOD ENDED 31 DECEMBER 2020

The General Purposes Committee presents its report along with the financial statements of the charity for the period 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 charity’s trust deed, applicable law and the requirements of the Statement of Recommended Practice, “Accounting and reporting by Charities” revised in January 2015 (SORP 2015).

The Charity is registered with the Charity Commission under The Durham Masonic Benevolent Fund (Registration number: 279313) but operates as the Benevolent Committee of the Province of Durham.

Organisation, structure, governance and management

The Benevolent Committee consists of the Principal Officers of the Province of Durham, together with six nominees of the Provincial Grand Master appointed annually and a representative of each Lodge known as the Benevolent Representative elected annually within their lodge.

The board of the trustees, known as the General Purposes Committee, who are required to meet at least quarterly, but actually meets more frequently as the administrative requirements of the charity dictate, run the charity. There is a subcommittee for awarding educational and scholarship grants and a further subcommittee, which recommends Community Support grants to the Benevolent Committee for approval via sub committee.

The Benevolent Committee works closely with a number of other local Charities and the Masonic Charitable Foundation (MCF), which exist to provide support to Brethren and their dependants.

Other local charities:

Masonic Charitable Foundation (MCF) comprising:

Related Party

The charity has a very close relationship with Durham Benevolence Trading Limited, a company owned by a number of committee members as representatives of their Masonic organisation. A summary of the transactions with this party is set out in note 13 to the financial statements.

The Trustee

The trustees and its directors who served the charity during the period are set out on page 1 of this report.

The directors of the trustee consist of the Principal Officers of the Provincial Grand Lodge of Durham and twelve Benevolent Representatives who are elected annually.

- 4 -

BENEVOLENT COMMITTEE OF THE PROVINCE OF DURHAM

TRUSTEES ANNUAL REPORT (continued)

PERIOD ENDED 31 DECEMBER 2020

Objectives and activities

The Benevolent Committee is a masonic organisation set up by trust deed dated 24 July 1956. The object of the Durham Masonic Benevolent Fund is to provide support for the needy brethren of masonic lodges in the Province of Durham and their dependants, and to provide children of brethren with assistance to further their education.

In order to further these objectives, the activities of the charity can be categorised as follows:

Public Benefit Statements

The trustees have had regard to the Charity Commission’s guidance on their legal duty on public benefit, and are satisfied that the Charity delivers public benefit, and due regard is paid to the guidance on public benefit when deciding on what new projects the charity should undertake.

Grant Policy

The trustees meet on a regular basis to consider what grants they will make; Masonic or Community Support grants.

Emergency grants are made to beneficiaries at the discretion of the management and approved retrospectively at trustees’ meetings.

Education and scholarship grants are paid to finance further education and are approved by a subcommittee set up for this purpose.

Achievements and performance

The main activity this period has been the administration of the two sheltered accommodation housing developments known as Peter Stracey House and Boundary Court. The extensive renovation programme of apartments at Peter Stracey House continues and costs kept within budget. Out of a total of 100 apartments very few remained unoccupied at the period end.

The normal activities of the Benevolent Committee in administering and distributing community support grants and group breaks have been subject to much disruption during the period due to the Covid 19 pandemic. The Group break has been postponed until 2022 and community support grants to our normal type of recipient – clubs, community projects and youth travel grants etc – have been greatly disrupted. Instead, the focus of our grant giving has switched since March 2020 to supporting organisations that require assistance due to the pandemic.

The economic climate over the last year has resulted in considerable fluctuations in the valuation of our investments but prudent planning and a further application of funds of £90,000 during the period, when prices of investments were reduced, has helped to produce acceptable results. At the time of writing, investments have improved in value but are still subject to fluctuations caused by uncertain trading conditions caused by the pandemic.

Financial review

During the period the Benevolent Committee raised £691,767. Rental income totalled £414,131. Income from our investments totalled £46,390.

Charitable expenditure amounted to £299,154 so that a net surplus of £310,237 occurred on ordinary activities. Also many local charities benefited from the now well established programme of Community Support grant giving which this period totalled £40,539. Loss on investment assets amounted to £82,376.

- 5 -

BENEVOLENT COMMITTEE OF THE PROVINCE OF DURHAM

TRUSTEES ANNUAL REPORT (continued)

PERIOD ENDED 31 DECEMBER 2020

Plans for future periods

The programme for the immediate future is to continue to encourage donations to enable our activities to be maintained at least at their current levels.

In the medium term the plan is for consolidation of the fund so that investments can be maintained and at the same time make further provision for increase in reserves to meet our existing commitments, establishing a solid income base from investments, rental income and donations. The Committee is also exploring ideas for new forms of charitable giving.

In the long-term further expenditure will be incurred so as to make sure our sheltered accommodation projects are well maintained and improved where deemed necessary.

Investment Policy

The General Purposes Committee have the power to invest in such stocks, shares, property and other assets as they see fit. Quarterly reports are submitted by their stockbrokers, together with recommendations for managing the portfolio in the forthcoming quarter. The policy is to adopt a medium risk strategy based on maximising the returns on the investments whilst obtaining reasonable growth in the market value of the portfolio.

Volunteers and other contributors

The General Purposes Committee would especially like to thank the following:

Benevolent representatives for their attendance at quarterly meetings and for their considerable efforts to ensure that the needs of brethren and their dependants are identified and acted upon;

The officers of the general purpose Committee, the Chairman S. C. Steele who conducted meetings with skill and efficiency, the Vice Chairman M. S. Shaw, Treasurer S. A. Willis, the Secretary T. Gittins all of whom made invaluable contributions to the management and administration of the Benevolent Committee and all the staff at the Provincial Office for their willing and cheerful assistance in the work of the Benevolent Committee.

Thanks are also extended to all those members of the general purpose committee old and new for their very valuable contributions to the work of Durham Benevolence.

Risk management

The General Purposes Committee has assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the Trust, and is satisfied that systems are in place to mitigate any exposure to major risks.

Reserves

Note 12 to the financial statements shows the assets and liabilities attributable to the various funds by type and also shows the various trusts of the charity and summarises the period’s movements on each fund.

The General Purposes Committee has examined the requirement for free reserves, which are those unrestricted funds not invested in fixed assets, designated for specific purposes or otherwise committed and consider that this should be at a level to give sufficient working capital to cover costs.

The free reserves at 31 December 2020 amounted to £903,841.

General Purposes Committee responsibilities

Law applicable to charities in England and Wales requires the General Purposes Committee to prepare financial statements for each financial period which give a true and fair view of the charity’s financial activities during the period and of its financial position at the end of the period.

In preparing the financial statements, the General Purposes Committee are required to:

- 6 -

BENEVOLENT COMMITTEE OF THE PROVINCE OF DURHAM

TRUSTEES ANNUAL REPORT (continued)

PERIOD ENDED 31 DECEMBER 2020

General Purposes Committee responsibilities (continued)

The General Purposes Committee are responsible for keeping accounting records, which 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 applicable law. 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.

Insofar as the members of the General Purposes Committee are aware:

Approved by the General Purposes Committee and signed on their behalf:

…………………………………….Treasurer

……………………………………..Secretary

Date:

- 7 -

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF BENEVOLENT COMMITTEE OF THE PROVINCE OF DURHAM

PERIOD ENDED 31 DECEMBER 2020

Opinion

We have audited the financial statements of Durham Masonic Benevolent Fund (the 'charity') for the period ended 31 December 2020 which comprise the balance sheet, statement of financial activities and the related notes, 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the charity's members, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's members 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 members as a body, for our audit work, for this report, or for the opinions we have formed.

In our opinion the financial statements:

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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

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, except to the extent otherwise explicitly stated in our report, 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

- 8 -

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF BENEVOLENT COMMITTEE OF THE PROVINCE OF DURHAM

PERIOD ENDED 31 DECEMBER 2020

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.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, 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

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:

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit with regards to fraud, are to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with those charged with governance.

Our approach was as follows:

- 9 -

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF BENEVOLENT COMMITTEE OF THE PROVINCE OF DURHAM

PERIOD ENDED 31 DECEMBER 2020

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Torgersens Chartered accountant & statutory auditor Somerford Buildings Norfolk Street Sunderland SR1 1EE

Date:

- 10 -

THE BENEVOLENT COMMITTEE OF THE PROVINCE OF DURHAM

STATEMENT OF FINANCIAL ACTIVITIES

PERIOD ENDED 31 DECEMBER 2020

Unrestricted
Funds
Restricted
Funds
Endowment
Funds
£
£
£
INCOMING RESOURCES
Donations & legacies
2
226,266
-
-
Charitable activities
Sale of annual reports
4,980
-
-
Investments
Dividends
3
46,390
-
-
Rental income
391,275
22,856
-
--------------------------------
--------------------------------
----------------------------
TOTAL INCOMING
RESOURCES
668,911
22,856
-
----------------------------
----------------------------
----------------------------
Expenditure on
raising funds
4
(153,198)
(10,890)
-
Expenditure on
charitable activities
4
(135,066)
-
-
Gains/(Losses) on
investment assets
(82,376)
-
-
------------------------------------
----------------------------
----------------------------
NET
INCOME/EXPENDITURE
298,271
11,966
-
Transfer between funds
-
-
-
----------------------------
----------------------------
--------------------------------
NET MOVEMENT OF
FUNDS IN THE PERIOD
298,271
11,966
-
Total funds at 1 October 2019
8,386,787
215,861
16,980
Transfer of BC/PSH
Repair Fund
-
(23,064)
-
--------------------------- ------
----------------------------
----------------------------
--
TOTAL FUNDS AT 31
DECEMBER 2020
8,685,058
204,763
16,980		 Total
2020
£
226,266
4,980
46,390
414,131
--------------------------------
691,767
--------------------------------
(164,088)
(135,066)
(82,376)
--------------------------------
310,237
-
--------------------------------
310,237
8,619,628
(23,064)
--------------------------------------------
--
8,906,801		 Total
2019
£
27,441
4,800
41,735
332,753
--------------------------------
406,729
--------------------------------
(88,988)
(140,464)
3,342
--------------------------------
180,619
-
------------------------------------------
180,619
8,433,528
5,481
--------------------------------------------
8,619,628

The notes on pages 13 to 23 form part of these financial statements.

- 11 -

BENEVOLENT COMMITTEE OF THE PROVINCE OF DURHAM

BALANCE SHEET

31 DECEMBER 2020

2020 2019
Note £ £ £
FIXED ASSETS
Investment properties 8 6,835,914 6,675,834
Investments 9 960,885 930,742
---------------------------------------------- -------------------------------------------
7,796,799 7,606,576
------------------------------------------- -------------------------------------------
CURRENT ASSETS
Debtors 10 48,780 180,192
Cash at bank and in hand 1,077,642 853,122
-------------------------------------- ------------------------------------------
1,126,422 1,033,314
CREDITORS: Amounts falling due within one year 11 (16,420) (20,262)
-------------------------------- ----------------------------
NET CURRENT ASSETS 1,110,002 1,013,052
---------------------------------------------- -------------------------------------------
NET ASSETS 8,906,801 8,619,628
============================================== ===========================================
FUNDS
RESTRICTED INCOME FUNDS:
Endowment funds 12 16,980 16,980
Restricted funds 12 204,763 215,861
Unrestricted income funds 12 8,685,058 8,386,787
------------------------------------------------- -------------------------------------------
TOTAL FUNDS 8,906,801
==============================================		 8,619,628
===========================================

These financial statements were approved by the members of the committee on the ........................ and are signed on their behalf by:

Treasurer

Secretary

The notes on pages 13 to 23 form part of these financial statements.

- 12 -

BENEVOLENT COMMITTEE OF THE PROVINCE OF DURHAM

NOTES TO THE FINANCIAL STATEMENTS

PERIOD ENDED 31 DECEMBER 2020

1 Accounting Policies

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

b Funds

Funds held by the charity are:

Unrestricted general funds - these are funds which are used in accordance with the charitable objects of the charity at the discretion of the trustees.

Restricted funds - these are funds that are to be used for specific purposes as laid down by the donor or by the specific terms of the appeal under which the funds are raised. Expenditure which meets these criteria is charged to the fund, together with a fair allocation of management and support costs.

Endowment funds are funds, the capital of which must be maintained; only income arising from investment of the endowment may be used either as restricted or unrestricted funds depending upon the purpose for which the endowment was established.

Transfers to and from funds are made as designated by the trustees.

Income is recognised in the period in which the charity is entitled to receipt and the amount can be measured with reasonable certainty.

Voluntary donations are accounted for when received. The value of services provided by volunteers has not been included.

Legacies and bequests are accounted for at the earlier of notification of the personal representative of the estate or the date received.

Income from investments and from rental income is included in the Statement of Financial Activities (“SOFA”) in the period in which it is receivable. Income from investments together with the income tax recoverable is shown gross as is rental income.

Sale of annual report income represents contributions by lodges towards the cost of printing and distributing the annual report.

Grants from Grand Charity and other masonic charities are accounted for when receivable.

- 13 -

BENEVOLENT COMMITTEE OF THE PROVINCE OF DURHAM

NOTES TO THE FINANCIAL STATEMENTS

PERIOD ENDED 31 DECEMBER 2020

1 Accounting Policies (continued)

d Resources expended and liabilities

Resources expended are accounted for on an accruals basis.

Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources.

Grants payable to beneficiaries are included in the SOFA when the charity’s obligation has been established. The value of such grants that are unpaid at the period end is accrued.

Expenditure relating to specific activities or projects is shown under charitable activities.

Support costs consist of costs for processing grants and applications, including support to actual and potential applicants. Management and administration comprise of costs for the running of the charity itself as an organisation. Support costs are allocated to each activity on the basis of estimated time spent by support staff.

e

Tangible fixed assets and depreciation

Tangible fixed assets consist of two sheltered housing complexes, Peter Stracey House and Boundary Court, which were built to provide sheltered accommodation to aged brethren or their close dependants at a reasonable rental charge.

In order to help fund the building, a number of flats were sold on leasehold to the occupants. Although generally accepted accounting practice and the SORP requires that assets and liabilities should be shown separately, the General Purposes Committee are of the opinion that disclosing the charity’s net interest in the property is required to give a true and fair view.

The charity’s properties are held in part to achieve the objects of the charity and are included in the balance sheet at their open market value. The surplus or deficit on revaluation of the property is transferred to the revaluation reserve within unrestricted funds. Depreciation is not provided in respect of the freehold property.

This policy represents a departure from the SORP, which requires depreciation to be provided on all fixed assets. The committee considers that this policy is necessary in order that the financial statements may give a true and fair view because current values and changes in current values are of prime importance rather than the calculation of systematic annual depreciation. Depreciation is only one of many factors reflected in the valuation and the amount which might otherwise have been shown cannot be separately identified or quantified.

f 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 charity does not acquire put options, derivatives or other complex financial instruments.

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 period. Unrealised gains and losses are calculated as the difference between the fair value at the period end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

g

Taxation

Due to the company’s charitable operations no corporation tax is payable on the results for the period.

- 14 -

BENEVOLENT COMMITTEE OF THE PROVINCE OF DURHAM

NOTES TO THE FINANCIAL STATEMENTS

PERIOD ENDED 31 DECEMBER 2020

2. DONATIONS & LEGACIES

DONATIONS & LEGACIES
Unrestricted Restricted Total Funds Total Funds
Funds Funds 2020 2019
£ £ £ £
Brethren and lodges 60,563 - 60,563 27,441
Legacies 165,703 - 165,703 -
-------------------------------- -------------------------------- ---------------------------------- --------------------------------
226,266
================================		 -
================================		 226,266
================================		 27,441
================================

Donations and legacies comprised of £226,266 unrestricted (2019: £27,441) and £nil restricted (2019: £nil).

3. INVESTMENT INCOME

INVESTMENT INCOME
Unrestricted Restricted Total Funds Total Funds
Funds Funds 2020 2019
£ £ £ £
Dividend and interest
UK equities 34,244 - 34,244 30,277
UK investment trusts and unit trusts 2,454 - 2,454 1,813
UK fixed interest 5,129 - 5,129 6,487
Interest on cash deposits 4,563 - 4,563 3,158
---------------------------------- ---------------------------- ---------------------------- --------------------------------
46,390 - 46,390 41,735
================================ ============================ ================================ ================================

Income from investments comprised of £46,390 unrestricted (2019: £41,735).

- 15 -

BENEVOLENT COMMITTEE OF THE PROVINCE OF DURHAM

NOTES TO THE FINANCIAL STATEMENTS

PERIOD ENDED 31 DECEMBER 2020

4. EXPENDITURE

EXPENDITURE
Investment
management Ambulance Youth of Total Funds Total Funds
costs General funds Fund 2021 Festival Durham 2020 2019
£ £ £ £ £ £
Direct expenditure
Refurbishment and repairs 125,425 - - - - 125,425 72,653
Rates and service charges etc 28,856 - - - - 28,856 8,171
Respite holiday - 400 - - - 400 (310)
Grants and donations - 87,423 - - - 87,423 60,380
2021 Festival start up - - - - - - 25,000
Audit fee - 10,410 - - - 10,410 14,850
Meeting expenses - 450 - - - 450 950
Investment management costs 4,577 - - - - 4,577 2,952
Bank charges 2,980 180 - - 3,160 2,962
Support costs:-
Management recharge 2,250 35,250 - - - 37,500 37,500
Other expenses - 953 - - - 953 4,344
-------------------------------- -------------------------------- -------------------------------- -------------------------------- -------------------------------- -------------------------------- --------------------------------
164,088 135,066 - - - 299,154 229,452
============================ ============================ ============================ ============================ ================================ ================================ ===========================================
ation of support costs
Management recharge costs have been allocated to each activity on the basis of estimated time spent by the support staff as follows:
Period Ended 31 December 2020 6% 94% 0% 0% 0% 100%
================================ ================================ ================================ ================================ ================================ ================================
Year Ended 30 September 2019 6% 94% 0% 0% 0% 100%
================================ ================================ ================================ ================================ ================================ ================================

Allocation of support costs

Expenditure on raising funds comprised of £153,198 unrestricted (2019: £77,146); and £10,890 restricted (2019: £11,842); Expenditure on charitable activities comprised of £135,066 unrestricted (2019: £138,864), £nil restricted (2019: £1,600)

- 16 -

BENEVOLENT COMMITTEE OF THE PROVINCE OF DURHAM

NOTES TO THE FINANCIAL STATEMENTS

PERIOD ENDED 31 DECEMBER 2020

5. GRANTS

GRANTS
Total Funds Total Funds
Institutions Individuals 2020 2019
£ £ £ £
Emergency grants - 2,650 2,650 4,250
Covid-19 grants 41,234 - 41,234 -
Mark Centenary - - - 3,000
Defibrillators 3,000 - 3,000 2,000
Community Support grants 40,539 - 40,539 49,530
-------------------------------- -------------------------------- -------------------------------- --------------------------------
84,773
================================		 2,650
============================		 87,423
================================		 58,780
================================

6. STAFF COSTS AND NUMBERS

The General Purposes Committee are not remunerated. The average number of employees during the period was nil (2019: nil).

7. TRUSTEES REMUNERATION, EXPENSES AND KEY MANAGEMENT PERSONNEL

During the current and preceding period the trustees did not receive any remuneration.

During the period trustees were reimbursed for out of pocket expenses amounting to £nil (2019: £nil).

The key management personnel of the charity comprise of the treasurer and secretary. The total employee benefits of the key management personnel of the charity were £nil (2019: £nil).

8. Investment Properties

Investment Properties
Land and
buildings
£
COST OR VALUATION
At 1 October 2019 6,675,834
Additions -
Revaluation in period (24,720)
Purchase of leaseholders interest 184,800
Sale of interest to leaseholders -
------------------------------------------------
At 31 December 2020 6,835,914
==============================================
NET BOOK VALUE
At 31 December 2020 6,835,914
==============================================
At 30 September 2019 6,675,834
===========================================

- 17 -

BENEVOLENT COMMITTEE OF THE PROVINCE OF DURHAM

NOTES TO THE FINANCIAL STATEMENTS

PERIOD ENDED 31 DECEMBER 2020

8. TANGIBLE FIXED ASSETS (continued)

Rental Properties
VALUATION
At 1 October 2019
==
REVALUATION IN THE PERIOD
Sale of interest to leaseholders
Purchase of leaseholders interest
Revaluation in period
At 31 December 2020
NET BOOK VALUE
At 31 December 2020
At 30 September 2019		 Freehold
Buildings
Leaseholders’
Interest
£
£
8,181,602
(1,505,768)
============================================
===========================================
==
-
-
-
184,800
(24,720)
-
-------------------------------------------
-------------------------------------------
(24,720)
184,800
=========================================
========================================
8,156,882
(1,320,968)
8,181,602
(1,505.768)		 Charity’s
Interest
£
6,675,834
============================================
-
184,800
(24,720)
-------------------------------------------
160,080
==========================================
6,835,914
6,675,834

On 1 September 2018 the properties were revalued by Alfred Pallas, Chartered Surveyors, on the basis of open market value.

The historic cost of the freehold buildings are as follows:

The historic cost of the freehold buildings are as follows:
2020 2019
£ £
Freehold land 587,022 587,022
Building expenditure 5,937,256 5,937,256
Professional and legal fees 164,607 164,607
Loan interest capitalised 223,105 223,105
------------------------------------------- -------------------------------------------
6,911,990 6,911,990
=========================================== ===========================================
INVESTMENTS
2020 2019
£ £
Market value at 1 October 2019 930,742 928,809
Additions 271,603 141,447
Disposals at book value (188,048) (142,857)
Revaluation (53,412) 3,343
-------------------------------- --------------------------------
Market value at 31 December 2020 960,885 930,742
================================ ================================

9. INVESTMENTS

Investments at market value are represented by the following U.K. listed securities

2020 2019
£ £
Equity shares 683,564 640,538
Investment trusts and unit trusts 87,656 49,461
UK fixed interest 181,364 228,727
Cash 8,301 12,016
-------------------------------- --------------------------------
960,885 930,742
================================ ================================
Cost at 31 December 2020 880,850
================================		 813,422
================================

- 18 -

BENEVOLENT COMMITTEE OF THE PROVINCE OF DURHAM

NOTES TO THE FINANCIAL STATEMENTS

PERIOD ENDED 31 DECEMBER 2020

10. DEBTORS

2020 2019
£ £
Prepayments and accrued income 139 1,711
Other debtors 48,641 178,481
-------------------------------- --------------------------------
48,780 180,192
============================ ============================
CREDITORS: Amounts falling due within one year
2020 2019
£ £
Accruals and other creditors 15,450 10,454
Grants payable 970 9,808
-------------------------------- --------------------------------
16,420
================================		 20,262
================================

11. CREDITORS: Amounts falling due within one year

12. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Net current
Total Fixed assets Investments assets
£ £ £
Endowment Funds 16,980 - - 16,980
Restricted Funds 204,763 - - 204,763
Unrestricted Funds 8,685,058 6,835,914 960,885 888,259
---------------------------------------------- ---------------------------------------------- ------------------------------------------- -------------------------------------------
Total Funds 8,906,801 6,835,914 960,885 1,110,002
============================================== ============================================== =========================================== ===========================================

Analysis of net assets between		 Net current
funds – previous year Total Fixed assets Investments assets
£ £ £
Endowment Funds 16,980 - - 16,980
Restricted Funds 215,861 - - 215,861
Unrestricted Funds 8,386,787 6,675,834 930,742 780,211
---------------------------------------------- ---------------------------------------------- ------------------------------------------- -------------------------------------------
Total Funds 8,619,628 6,675,834 930,742 1,013,052
========= ========= ======== ========

12a. ENDOWMENT FUNDS: movement on the period

Balance at Incoming Outgoing Balance at
1 Oct 2019 resources resources Transfers 31 Dec 2020
£ £ £ £ £
Ernest Dixon
Scholarship fund 16,980 - - - 16,980
============================ ============================ ================================ ============================ ============================
. ENDOWMENT FUNDS: movement on the previous year
Balance at Incoming Outgoing Balance at
1 Oct 2018 resources resources Transfers 30 Sep 2019
£ £ £ £ £
Ernest Dixon
Scholarship fund 16,980 - - - 16,980
============================ ============================ ================================ ============================ ============================

Ernest Dixon Scholarship fund

This is an endowment to provide grants to children of brethren who are students at Universities or Technical Colleges. The income from this fund contributes to grants expended during the period any surpluses are retained as a restricted fund as below.

- 19 -

BENEVOLENT COMMITTEE OF THE PROVINCE OF DURHAM

NOTES TO THE FINANCIAL STATEMENTS

PERIOD ENDED 31 DECEMBER 2020

12b. RESTRICTED FUNDS: movement in the period

Transfer
of
BC/PSH
Balance at Incoming Outgoing repair Balance at
1 Oct 2019 resources resources Fund Transfers 31 Dec 2020
£ £ £ £ £ £
Education funds
Ernest Dixon
Scholarship fund 3,919 - - - - 3,919
Durham Masonic
Education fund 27,648 - - - - 27,648
Durham Masonic
Scholarship fund 13,664 - - - - 13,664
Repair contribution
fund 86,940 22,856 (10,890) - - 98,906
PSH Repair fund 35,021 - - (23,732) - 11,289
BC Repair fund 46,732 - - 668 - 47,400
Province of Durham
Relief Chest Fund 1,672 - - - - 1,672
Search and Rescue 265 - - - - 265
-------------------------------- -------------------------------- -------------------------------- ---------------------------- ---------------------------- --------------------------------
215,861 22,856 (10,890) (23,064) - 204,763
================================ ================================ ================================ ============================ ============================ ================================
12b. RESTRICTED FUNDS: movement on the previous year
Transfer
of
BC/PSH
Balance at Incoming Outgoing repair Balance at
1 Oct 2018 resources resources Fund Transfers 30 Sep 2019
£ £ £ £ £ £
Education funds
Ernest Dixon
Scholarship fund 3,855 - - - 64 3,919
Durham Masonic
Education fund 29,248 - (1,600) - - 27,648
Durham Masonic
Scholarship fund 13,664 - - - - 13,664
Repair contribution
fund 87,953 10,829 (11,842) - - 86,940
PSH Repair fund 38,200 - - (3,179) - 35,021
BC Repair fund 38,072 - - 8,660 - 46,732
Province of Durham
Relief Chest Fund 1,672 - - - - 1,672
Search and Rescue 265 - - - - 265
-------------------------------- -------------------------------- -------------------------------- ---------------------------- ---------------------------- --------------------------------
212,929 10,829 (13,442) 5,481 64 215,861
================================ ================================ ================================ ============================ ============================ ================================

- 20 -

BENEVOLENT COMMITTEE OF THE PROVINCE OF DURHAM

NOTES TO THE FINANCIAL STATEMENTS

PERIOD ENDED 31 DECEMBER 2020

12b. RESTRICTED FUNDS: movement in the period (continued)

The Durham Masonic Education Fund is to provide assistance in the education and maintenance of necessitous children aged between five and eighteen. The Durham Masonic Scholarship and The Ernest Dixon Masonic Scholarship funds provide grants to children of brethren who are students at Universities or Technical Colleges. The transfer in the previous period for the Ernest Dixon Scholarship Fund was with regards to interest.

The repair contribution fund represents monies set aside by the charity to meet capital property expenditure costs as landlords.

The PSH and BC repair funds represent amounts put aside for future maintenance work on the properties.

The Continuous Giving fund represents funds donated by brethren to fund a national Masonic charity. This has now been completed.

Durham Relief Chest fund represents funds donated by members and gift aid claimed on donations. These funds remain unpaid to the Durham Relief Chest fund at the period end.

The Search and Rescue fund represents money received in a prior period to be donated to help the search and rescue charities to be distributed or part of the Community Support grant process.

All other restricted fund transfers are management fees deemed borne by the Benevolent Committee.

12c. UNRESTRICTED FUNDS: movement in the period

Balance Balance
At 1 Incoming Outgoing Gains/ At 31 Dec
Oct 2019 Resources Resources Transfers (Losses) 2020
£ £ £ £ £ £
Designated
Reserve fund 800,000 - - - - 800,000
Legacy fund 145,303 - - - - 145,303
2021 Festival
fund - - - - - -
General reserves
Revaluation 1,832,694 - - - (24,720) 1,807,974
Other Reserves 5,608,790 652,852 (272,204) - (57,657) 5,931,781
------------------ ------------------- ---------------- --------------- --------------- -----------------
8,386,787 652,852 (272,204) - (82,377) 8,685,058
============ ============= ============ ========== ========== ==========

- 21 -

BENEVOLENT COMMITTEE OF THE PROVINCE OF DURHAM

NOTES TO THE FINANCIAL STATEMENTS

PERIOD ENDED 31 DECEMBER 2020

12c. UNRESTRICTED FUNDS: movement in the period (continued)

UNRESTRICTED FUNDS: movement on the previous year

Balance Balance
At 1 Incoming Outgoing Gains/ At 30 Sept
Oct 2018 Resources Resources Transfers (Losses) 2019
£ £ £ £ £ £
Designated
Reserve fund 800,000 - - - - 800,000
Legacy fund 145,303 - - - - 145,303
2021 Festival
fund - - (25,000) 25,000 - -
General reserves
Revaluation 1,832,694 - - - - 1,832,694
Other Reserves 5,425,622 395,900 (191,010) (25,064) 3,342 5,608,790
------------------ ------------------- ---------------- --------------- --------------- -----------------
8,203,619 395,900 (216,010) (64) 3,342 8,386,787
============ ============= ============ ========== ========== ==========

The designated reserve fund has been set up by the trustees to meet the cost of any repurchase of properties as required.

The legacy fund has been set up by the trustees to reflect investments to be made; any income from these investments along with the capital element will be used to match fund projects carried out by Brethren at the discretion of the General Purposes Committee.

The 2021 festival fund was set aside by the trustees to make any future contributions towards the Provincial Grand Lodge of Durham 2021 Festival.

13. RELATED PARTY TRANSACTIONS

The Benevolent Committee of the Province of Durham, is a charity under the same control as Durham Benevolence Trading Limited. This company donates all of its profits to the Benevolent Committee of the Province of Durham and during the period this amounted to £21,169 (2019: £5,682). During the period the Benevolent Committee of the Province of Durham paid expenses on behalf of the company totalling £30 (2019: £840). During the period the Benevolent Committee of the Province of Durham received monies totalling £nil (2019: £330) on behalf of the company. At the current balance sheet date the Benevolent Committee of the Province of Durham was owed £2,690 (2019: £23,829).

- 22 -

BENEVOLENT COMMITTEE OF THE PROVINCE OF DURHAM

NOTES TO THE FINANCIAL STATEMENTS

PERIOD ENDED 31 DECEMBER 2020

APPENDIX 1

Community Support Grants for the Period

Butterwick Hospice
Humbledon & Plains Farm Youth FC
Chance
St Benedict’s Hospice
St Aidan’s Church
Lucy McMartin
CLS PALS
Durham Palatines Netball Club
Learning 4 Life
Tyne & Wear MS Group
Hurworth Kyosho Karate Club
Multiple Systems Atrophy Trust
County Durham & Darlington NHS Trust
Catcote Academy
Leeholme & Coundon Scouts
Whitburn Bowling Club
Roseberry Grange – defibrillator
Don Memorial
22nd South Shields Scouts
Langley Park Hotspurs
St Johns Methodist Church
Finchdale Group
Friends Hartlepool Wild Spaces
Tranfield Railway Trust
Ambulance Fund Scarborough Court
H Gerrard
F Hall
Martha Laws
Emma Holmes
C Bryant
Ben Edmonds
Peter Craig – wheelchair
S Collins
10 iPads for Care Homes
iPad Cases
4 iPads for Care Homes
Jigsaw
RT Community Projects
Tranfield Lea Partnership
Ihinnie Comm Garden
Leo’s
Deliverance Christine Kipling
Erin Temple
Moses Project
Singing Hinnies
Stags		 Total
£
1,000
750
500
1,500
500
500
750
500
1,000
750
750
600
1,000
750
750
1,000
1,000
1,000
800
500
600
1,000
1,000
750
1,000
500
500
350
350
500
500
500
500
3,024
55
1,215
600
1,000
1,000
425
400
500
500
3,000
3,170
1,700
______
40,539

- 23 -