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2022-03-31-accounts

THE GRAND CHARITY

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Charity Number: 281942

THE GRAND CHARITY

Contents Page
Trustee’s Annual Report 3
Statement of Trustee’s Responsibilities 11
Auditor’s Report 12
Statement of Financial Activities 15
Balance Sheet 16
Statement of Cash Flows 17
Notes to the Financial Statements 18

Page 2 of 22

THE GRAND CHARITY

TRUSTEE’S ANNUAL REPORT

The trustee is pleased to submit its report for the year ended 31[st] March 2022.

Reference and Administrative Information

Name and Registered Office

The name of the charity is The Grand Charity (the “Charity”) and it has its registered office at 60 Great Queen Street, London, WC2B 5AZ.

Trustees

The trustee who served during the year were:

The trustees of the MCF who served during the year were:

James H. Newman resigned as Chairman of the MCF on 31[st] March 2021 and Trustee of the MCF on 28[th] April 2021, and Sir Paul Williams was appointed Chairman on 1[st] April 2021.

Page 3 of 22

THE GRAND CHARITY

TRUSTEE’S ANNUAL REPORT

Executive

The Executive during the year to 31[st] March 2022 were:

Auditor

Knox Cropper LLP, Chartered Accountants, 65 Leadenhall Street, London, EC3A 2AD

Bankers

Coutts & Co, 440 Strand, London, WC2R 0QS

Investment Managers

Royal London Asset Management, 55 Gracechurch Street, London EC3V 0RL

Solicitors

Stone King LLP, Boundary House, 91 Charterhouse Street, London, EC1M 6HR

Structure, Governance and Management

Organisation

The Charity was established by trust deed on 16[th] April 1980 by the United Grand Lodge of England, which provided initial funding from the Grand Lodge’s Fund of Benevolence. At a meeting held on 9[th] September 2015, the trustees approved a deed of amendment and reinstatement and an amended trust deed altering the constitutional and governance arrangements of the charity to reflect changes in trustees and membership with effect from 1[st] April 2016.

The unrestricted assets and liabilities from the Charity, together with the assets and liabilities of the Transferred Beneficiaries Fund, were transferred to a fellow subsidiary company of the same name (charity number 1170335 and company number 01487345; hereafter “TGC Company”) with effect from 1[st] February 2017 following a resolution from the trustees made on 15 December 2016. The restricted Relief Chest Fund remains in the unincorporated trust.

As the sole trustee, the MCF exercises control over the Charity, and will consolidate the Charity’s results in its group accounts. Details of the processes for the appointment, induction and training of the MCF’s trustees are given in the annual report and accounts of that company.

Page 4 of 22

THE GRAND CHARITY

TRUSTEE’S ANNUAL REPORT

Governance and Management

All governance and management capabilities are provided by the MCF and details of the relevant committees and processes are provided in the annual report and accounts of that company. Trustees and committees of the MCF address the specific needs of the Charity as part of their roles and responsibilities for the MCF. The trustee board and the main committees meet as follows:

Board/Committee Purpose Meetings per
**year **
Trustee Board Main decision-making body with ultimate responsibility for the
Charity		 4
Audit and Risk Identification and mitigation of risk, oversight of external audit 2
Charity Grants Consideration of applications for grants from organisations
recognised by the Charity Commission		 4
Finance Ensuring adequate procedures are in place to manage all
aspects of financial planning, controlling and reporting.		 4
Fundraising Supporting the masonic community’s fund raising activities to
support the Charity		 4
Investments Maintaining investment strategies to meet the requirements of
the Charity, appointment and monitoring of fund managers		 4
Masonic Support Consideration of applications from individuals connected with
the masonic community for financial relief		 4
Remuneration Determination of executive and staff pay & benefits 2
Strategy Development and implementation of strategies to support the
Charity’s objectives. In addition, the trustees hold an annual
strategic‘away day’.		 4

The Charity does not employ any staff, with services being provided by staff employed by the MCF.

Objectives and Activities

Objectives

The Charity is the central grant-making charity of all Freemasons under the English Constitution. The objects of the Charity, as expressed in the trust deed, are very broad and before the amendments approved at the annual general meeting in September 2015, gave discretion to the trustees to support charitable purposes as recognised under UK Law. As a result of the amendments, that discretion has now passed to the Charity’s sole corporate trustee.

The trustee has referred to the Charity Commission’s general guidance on public benefit when reviewing its aims and objectives and has ensured that its grant-making policies and activities comply with the requirements

Activities

Following the transfer of grant making activities to TGC Company in 2017, the sole activity of the Charity is now to provide administrative services to the Masonic community as laid out overleaf:

Page 5 of 22

THE GRAND CHARITY

TRUSTEE’S ANNUAL REPORT

Activities (Continued)

1. Relief Chest Scheme

The Relief Chest Scheme (RCS), introduced in 1986, offers individual relief chests to lodges, chapters, provinces and other recognised Masonic organisations, which are used to generate funds for all types of charitable purposes. These funds are held by The Grand Charity unincorporated trust in a restricted fund. A donation is made from a relief chest to a charity, an organisation recognised as charitable, or for an individual in distress only at the request of the relief chest holder.

The RCS provides vital support to provinces in festival and other appeals, enabling them to reach their fundraising targets efficiently. It also ensures that all statutory compliance and administration requirements, for example, of the Charity Commission, Information Commissioner’s Office and HMRC have been met.

Investment in infrastructure and latest technology ensures that the RCS delivers a risk management framework in a cost efficient manner.

In 2018, RCS launched donor advised funds for individuals. The Individual Relief Chest Scheme (IRCs) programme was released in beta version. It is now open to all Freemasons, their families and friends. These funds are held by the Masonic Charitable Foundation in a restricted fund.

All services of the RCS are provided free, no administration fee is charged to the chest holder.

The services of the RCS, which assist donors to give to both Masonic and non-Masonic charitable activities efficiently, contribute to the public benefit by creating value for other charities and extending the Scheme’s positive impact.

The Charity is transforming Masonic charitable giving to make the process easy and to help give substantial donations each year to charitable causes.

The Charity is committed to helping Freemasons to make a difference to the world in which they live and to inspire greater generosity from this community, by offering practical tailored support through its wealth of resources and tools.

2. Maintaining and supporting the Festival and Donations IT system

In addition to the above the RCS provided maintenance and support of the festival and donations IT system. This application is used for the festival management of the CMCs.

3. Maintaining and supporting the Honorifics Evaluation IT system (HONE)

RCS designed and developed an application to manage the honorific programme for the Masonic Charitable Foundation. This IT system is maintained and supported by RCS.

Page 6 of 22

THE GRAND CHARITY

TRUSTEE’S ANNUAL REPORT

Achievements and Performance

During the year, activity in the RCS included:

2022 2021
Number of Relief Chests 5,152 5,055
Average number of monthly donations into the Scheme 37,884 31,628
Average number of monthly tax reclaims 30,278 25,488
Average number of monthly payments from the Scheme 308 283
Number of new Relief Chests opened 144 72

Relief Chest holders utilised the Scheme by requesting charitable donations as follows.

Masonic Charitable Foundation
The Grand Charity (General Fund)
The Royal Masonic Trust for Girls and Boys
The Royal Masonic Benevolent Institution
Masonic Samaritan Fund
Other charitable purposes
Total
 2022
2021
£000
£000
5,986
5,955
2
88
240
382
400
453
21
83
2,885
2,761
9,534 9,722

The achievements during the year have enhanced our support and services therefore contributing towards the strategic objectives of the Charity.

Key achievements during the year included:

Page 7 of 22

THE GRAND CHARITY

TRUSTEE’S ANNUAL REPORT

Financial Review

Review of the Year

Resumption of lodge activities for the second half of the year has resulted in a significant recovery of income received by the Relief Chest.

Incoming receipts of £10.57 M were 25% higher than prior year. Expenditure of £9.58 M was 2% lower. Masonic grants of £6.65 M were 4% lower than prior year, whilst charity grants of £2.93 M were 5% higher. The net inflow was £0.99 M against a prior year outflow of £1.28 M.

Reserves Policy

Following the transfer of accumulated unrestricted reserves to TGC Company, the Charity has become solely the mechanism for continued operation of the Relief Chest. The policy is to transfer any ongoing residual income from donations and legacies directly to the MCF immediately following receipt.

Investment Policy and Performance

The aim is to maintain the capital and generate a reasonable level of income by utilising the services of Royal London Asset Management Ltd (RLAM), a qualified asset management firm regulated by the Financial Conduct Authority that provides investment capabilities across a range of asset classes. The position on risk is to consider only low risk investments such as treasury bills, deposits with approved banks, certificates of deposit by approved banks and other cash related products.

The Royal London Short Term Money Market Fund has been used for investing cash that is surplus to immediate operational requirements. The Short Term Money Market Fund can only invest in money market instruments, covered bonds, corporate bonds (minimum credit rating of AA-) and Gilts/Supranational, and is rated by Fitch as an AAA money market fund. For the year ended 31 March 2021, the investment return on the cash was 0.1% after fees. This compares to a benchmark return of 0.1% (SONIA).

Page 8 of 22

THE GRAND CHARITY

TRUSTEE’S ANNUAL REPORT

Principal Risks and Mitigation

The principal risks identified and agreed actions to mitigate are shown in the following table:

**Risk ** Consequence **Mitigation **
Significant unexpected
financial loss from
operations		 Reputational damage, loss of
confidence with key stakeholders
and impact upon continuing
financial sustainability		 Strong financial procedures,
particularly budgetary planning and
control. Oversight from the Finance
Committee.
Inadequate liquidity to
meet financial
commitments		 Poor service to beneficiaries and
reputational damage. Withdrawal
of key servicesfromsuppliers		 Cash flow forecasting and liquidity
planning within the Investment
Strategy
Significant long-term loss
in the value of the
investment portfolio		 Impacts financial sustainability
and reputational damage with
donors		 Appointment of Asset Risk
Consultants as expert investment
advisors, providing monthly
performance reporting and analysis.
Oversight from investment and
property committees.
Grants made outside the
Charity’s Objects and
operating guidelines		 Reputational damage, loss of
confidence with key stakeholders
and potential trustee liability		 Strong procedures and controls for
processing grants. Oversight from
Masonic Support and Charity Grants
committees
Cyberattack on IT
systems		 All key operations are
compromised		 United Grand Lodge of England
(“UGLE”) and IT network providers
have strong security procedures in
place covering access, protection,
backups and disaster recovery
facilities. Mandatory cybersecurity
training in place for all staff
Data protection breach Reputational damage and
significant financial penalties		 Data protection policy, IT security
and HR policies in place
Fraud Financial loss, reputational
damage, adverse impact upon
staff		 Financial procedures, segregation of
duties, authority limits, IT security,
increased awareness amongst staff
Unavailability of office
accommodation		 Operations compromised UGLE Business Continuity Plan
Loss of paper records
from fire/flooding		 Breach of legal obligations,
adverse impact upon operations,
potential financial penalties		 Reduced reliance on paper records
with increased use of IT.
Lack of compliance with
employment legislation		 Breach of legal obligations,
potential financial penalties,
breakdown of staff morale and
adverse impact upon service
provision		 HR procedures and staff handbook.
Induction processes for new staff.
Ongoing management training and
Personal Development Review
Undue reliance on key
persons		 Operational breakdown, adverse
impact upon staff morale, poor
service to beneficiaries and
potential reputationaldamage		 HR procedures: organisational and
succession planning.
Comprehensive documentation of
procedures and controls

Risks are actively monitored by the Executive and the senior leadership team, and formally reviewed by the audit and risk committee at their biannual meetings.

Page 9 of 22

THE GRAND CHARITY

TRUSTEE’S ANNUAL REPORT

Plans for Future Periods

The Charity will continue to operate the Relief Chest Scheme as described in page 6 of this report for the foreseeable future.

As part of the corporate plan 2022/232, RCS will:

Page 10 of 22

THE GRAND CHARITY STATEMENT OF TRUSTEE'S RESPONSIBILITIES Stat•ment of Responsibilities The trustee is responsible for preparing the Irustee's report and financial statements in accordance with applicable law and United Kingdom Accounting Standards {U.K. "GAAP"). The law applicable to Charities in England and Wales, the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed require the trustee to prepare financial statements for each financial year which give a Irue and fair view of the state of affairs of the Charity and of the income and expenditure of the Charity for that year. In preparing these financial statements, the Iruslee is required to.. select suitable accounting policies and then apply them consislenlly. observe the methods and prtnciples in Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to Ghari118s preparing their financial statements in accordance wilh the Financial Reporting Standard applicable in Ihe United Kingdom and Republic of Ireland (FRS1021', make judgements and eslimales that are reasonable and prudent., state whether United Kingdom accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements., and prepare the financlal statements on the golng concern basis unless it Is inappropriate to presum8 that the charity will continue to operate. The trustee Is responsible for keeping adequate accounting records that disclose with reasonable accuracy at any lime the financial position of the Charity and enable It lo ensure that the financial statements comply with the Charities Act 2011, the Charily {A¢¢ountS and Reports) Regulations 2008 and the provisions of the trust deed. 11 is also responsible for safeguarding the assets of the Charity and for taking reasonable steps for the prevention and detection of fraud and other irregularities. Audltor A resolution proposing that Knox Cropper LLP be reappointed as auditor will be put lo the members. Approval by Trustee This report, was approved by the trustee on 151h September 2022 and signed on their behalf by Sir Paul Willlams, OBE, KStJ, DL Chairman, MCF Page11 of22

THE GRAND CHARITY

REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEE OF THE GRAND CHARITY

We have audited the financial statements of The Grand Charity (the “Charity”) for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows 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:

Basis of 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 trustee 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 trustee is responsible for the other information.

Page 12 of 22

THE GRAND CHARITY

REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEE OF THE GRAND CHARITY

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

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 themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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 Trustee

As explained more fully in the Trustee’s Responsibilities Statement set out on page 11, the trustee is 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 trustee determines 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 trustee is 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 trustee either intends to liquidate the company or to cease operations, or has 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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Page 13 of 22

THE GRAND CHARITY REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEE OF THE GRAND CHARITY Irregularities, including fraud, are instsn¢es of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect malerial misstatements in respect of irregularities, including fraud. The extent to which our procedures af8 capable of detecting irregularities, including fraud is detailed below: The Charity is required to comply with charity law and. based on our knowledg8 of its 8¢tivilies, we identified that the legal requirement to accurately account for any restricted funds was of key signifiGance. We gained an understanding of how the charity complied with its legal and regulatory framework, including the requirement to propedy account for any restricted funds, through discussions with management and a review of the documented policies, procedures and controls. The audit team. which is exparienced in the audit of charities, considered the charity's susceptibility to materi81 misslalement and how fraud may occur. Our considerations included the rlsk of management OV8rride. Our approach was lo check Ih8t all restricted income was properfy id8nlified and separately accounted for and lo ensure that only valid and approprlale expenditure was ch8rged to reslricled funds. This included ￿vIewIng joumal adjustments and unusual transactions. A furthor descnplion of our rospon6ibilitio8 for tho audit of the financial statom@nt8 is located on Iho Financial Reporting Council's v￿bsIte at.. www.frc.or udltorsres nslbilities. This description forms part of our auditor's report. U80 of th• audlt report This report is made solely to the Charity's trustee, as a body, in accordance with Part 4 of the Charilies (Accounts and Reports) Regulations 2008. Our audit work has been undertaken, so that we might slate lo tha Charity's trustee those matters we are required to State to them in an auditorfs report and for no other purpose. To the fullest extent permitted by law, we do not accept or 8ssume responsibility to anyon8 other than the Charity and the Chanty's Iruste8 as a body, for our audit work, for this report or for Ihe opinions we have formed. C¢fffj LLP Knox Cropper LLP Statutory Auditor 65 Leadenhall Street London EC3A 2AD If l ef lerf LcII Knox Cropper LLP is eligible for appointment as auditor of the charity by Mrtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. Page 14of22

THE GRAND CHARITY

STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 MARCH 2022

Note
INCOME
Donations and legacies
2
Investment income
3
Total income
EXPENDITURE
Charitable activities
Masonic grants
4
Non-Masonic grants
4
Total expenditure
NET MOVEMENT IN FUNDS
Total funds brought forward
Total funds carried forward		 2022
2021
£'000
£'000
10,567
8,446
0
28
10,567
8,474
(6,649)
(6,962)
(2,928)
(2,787)
(9,577)
(9,749)
990
(1,275)
21,796
23,071
22,786
21,796

All income and expenditure derive from continuing activities and all gains/losses are included in the statement of financial activities

The notes on pages 18 to 22 form part of these financial statements.

Page 15 of 22

THE GRAND CHARITY BALANCE SHEET a8 at 31 MARCH 2022 Notè March 2022 £'ooo March 2021 £'ooo CURRENT ASSETS Debtors Short term deposits Cash at bank and in hand 326 15,696 6,768 152 19,724 1,927 CURRENT LIABILITIES Creditors falling due h￿thIn one year Total nat a4s0t8 21,803 {4) (7) 21,796 22.786 CHARITABLE FUNDS Restrlctod in¢omo funds Relief Chest Total charltable fund• 22,786 21,796 21,796 The financial statements were approved and aulhorised for issue by the Trustee Board on 15th September 2022 and signed on their behalf by.. Sir Paul Williams, OBE, DL Michael H8enan Chairman Treasurer The no185 on pag85 18 to 22 fom part of these financial slalemenls Page 16 of22

THE GRAND CHARITY

STATEMENT OF CASH FLOWS

YEAR ENDED 31 MARCH 2022

Operating Activities
Net cash provided by/(used in) Operating Activities
A
Cash flows from investing activities
Dividends and interest from investments
Net cash provided by/(used in) Investing Activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of the
reporting period
Cash and cash equivalents at the end of the
reporting period
B
Notes on the cash flow statement
A
Reconciliation of net income/(expenditure) to net
cash flow from operating activities
Net movement in funds as per the Statement of
Financial Activities
Adjustments for:
Dividends, interest and rents from investments
(Increase)/decrease in debtors
(Decrease) in creditors
Net cash provided by/(used in) Operating Activities
B
Analysis of cash and cash equivalents
Short term deposits
Cash at bank and in hand
Total cash and cash equivalents		 2022
2021
£'000
£'000
813
(1,238)
0
28
0
28
813
(1,210)
21,651
22,861
22,464
21,651
990
(1,275)
0
(28)
(174)
65
(3)
0
813
(1,238)
15,696
19,724
6,768
1,927
22,464
21,651

Page 17 of 22

THE GRAND CHARITY

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

1. ACCOUNTING POLICIES

(a) Statement of compliance

The financial statements of The Grand Charity (the “Charity”) have been prepared in accordance with applicable UK accounting standards, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland” (“FRS 102”). Additionally, they comply with the Statement of Recommended Practice “Accounting and Reporting by Charities” (FRS 102 second edition) published in 2019 (the “SORP”) in all material respects. The Charity meets the definition of a public benefit entity under FRS 102.

(b) Basis of preparation

The financial statements have been prepared on a going concern basis under the historical cost convention, as modified by the revaluation of investments, on a basis consistent with previous years. The functional currency of the Charity is considered to be Pounds Sterling because that is the currency of the primary economic environment in which the Charity operates.

(c) Going concern

The trustee has assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustee has made this assessment in respect to a period of one year from the date of approval of these financial statements.

The trustee of the Charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The trustee is of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due.

Page 18 of 22

THE GRAND CHARITY

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

(d) Incoming resources

Revenue is recognised when the significant risks and rewards of ownership have been transferred, the amount of revenue can be measured reliably, it is probable that future economic benefits will flow to the Charity and when the specific criteria relating to each of the Charity’s revenue channels have been met, as described below:

(e) Resources expended

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 any obligation can be measured reliably. All resources expended are recognised on an accruals basis, with the exception of grants as noted below.

Charitable activities are split between masonic activities and grants awarded to external institutions (designated as “non-Masonic” within the SOFA).

Masonic activities include the payment of grants directly to beneficiaries together with related welfare and support costs. Non-Masonic activities consist of the payment of grants to external institutions. Support costs are allocated to these activities on the bases laid out in note 4.

Grants are recognised as expenditure in the year in which the grant is formally approved by the Charity and has been communicated in writing to the recipient, except to the extent that it is subject to conditions that enable the Charity to revoke the award.

The provision for multi-year grants is recognised at its present value when settlement is due over more than one year from the date of the award, there are no unfulfilled performance conditions under the control of the Charity that would permit it to avoid making future payments, settlement is probable and the effect of discounting is material. The discount rate used is the long-term return of inflation plus 4 percent used as the target for the Charity’s investment portfolio.

Page 19 of 22

THE GRAND CHARITY

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

(f) Employee benefits

All staff are employed by the parent charity, The Masonic Charitable Foundation, and no recharges are made to the Charity. Information relating to those employees is given in the accounts of the Masonic Charitable Foundation.

(g) Fund accounting

Restricted funds are subject to specific conditions imposed by the donors and/or for the purposes for which they are raised.

Unrestricted funds may be utilised for any purpose in accordance with the charitable objectives of the Charity.

(h) Investments

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are stated at market value. All realised and unrealised gains and losses are recognised within the Statement of Financial Activities. Investments which the Charity holds for resale or pending their sale and cash or cash equivalents with a maturity date of less than one year, which are held for investment purposes, are disclosed as current asset investments.

(i) Financial assets and liabilities

The Charity has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. Financial assets and liabilities are recognised when the Charity becomes a party to the contractual provisions of the instrument. Financial assets and liabilities which qualify as basic financial instruments are initially recognised at the settlement amount after any trade discounts. They are subsequently valued at amortised cost and assessed for impairment at the end of each reporting period. Where settlement is not expected within 12 months of the balance sheet date, then the asset or liability is discounted using the long term return of inflation plus 4 percent used as the target for the Charity’s investment portfolio . Basic financial instruments include debtors, cash and creditors within the balance sheet.

(j) Provisions

Provisions are recognised when the Charity has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount has been reliably estimated. Provisions are discounted to present value where the effect is material.

Page 20 of 22

THE GRAND CHARITY

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

(k) Foreign currencies

Transactions denominated in foreign currencies are translated into Pounds Sterling at the exchange rates ruling at the date of transaction. Monetary assets and liabilities denominated in foreign currencies are translated into Pounds Sterling at the rate ruling at the balance sheet date. All foreign exchange gains and losses, realised and unrealised, are recognised in the Statement of Financial Activities.

(l) Taxation

The Charity is exempt from taxation on its income and gains falling within Part 11 of the Corporation Tax Act 2010 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that they are applied to its charitable activities. The Charity is unable to recover Valued Added Tax (VAT) incurred on expenditure The amount of VAT that cannot be recovered is included within the underlying cost to which it relates.

2.
DONATIONS AND LEGACIES
Donations to Relief Chest Fund		 2022
2021
£'000
£'000
10,567
8,446
10,567
8,446
3.
INVESTMENT INCOME
Interest on bank deposits		 2022
2021
£'000
£'000
0
28
0
28

Page 21 of 22

THE GRAND CHARITY

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

4.
CHARITABLE ACTIVITIES
Masonic
Relief Chest
Non-Masonic
Armed Forces
Arts, Culture & Sport
Disaster Relief
Education
Environment, Conservation and Heritage
Health and Disability
Hospices
Other Charitable Purposes
Rescue Services
Research
5.
DEBTORS
Prepayments and accrued income
6.
CREDITORS
Falling due within one year
Accruals and deferred income		 2022
2021
£'000
£'000
6,649
6,962
6,649
6,962
25
17
18
42
22
9
154
265
13
22
2,017
918
221
161
375
277
49
1,043
34
33
2,928
2,787
March 2022
March 2021
£'000
£'000
326
152
326
152
March 2022
March 2021
£'000
£'000
4
7
4
7

7. RELATED PARTY TRANSACTIONS

Under the Relief Chest Scheme the Charity has made charitable donations to the MCF and other fellow subsidiaries on behalf of its holders as set out on page 7 of the trustees’ report.

The MCF has borne all the administrative costs of supporting the Charity.

8. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is the Masonic Charitable Foundation (Registered Charity No. 1164703, Company Number 09751836). Consolidated accounts for the MCF, which include the accounts of the Charity, can be obtained from the registered office of the Charity.

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