THE GRAND CHARITY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Charlty Number: 281942
THE GRAND CHARITY Contents Page Trustee's Annual Report ststement of Trustee's Responsibilities Audltorfs Report 12 ststement of Financial Actlvltles 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 ¥1 March 2024. Reference and Admlnlstratlve 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 Str88t, London. WC2B 5AZ. Trustees The Trustee who served durlng the year were.. The Masonic Charitable Foundation l MCF.) (Corporate Trust88, R8gist8r8d Charity No. 1164703, Company Number 09751836) The trustees of the MCF who served dunng the ye8r were.. John Boyington, CBE (Resigned 31st July 2023) Sinead Brophy (Resigned 3111 July 20231 Simon Duckworth, OBE. DL {Re5igned 3181 July 20231 Clive Emerson (Appointed Treasurer 1st August 2023) Dr Simon Fellerman Edward Goodchild (Appointed 1•1 August 2023) Alan Graham, M8E Antony Harvey (Resigned 31" July 2023) Christopher Head Micha81 He8nan ITr8asurer) (Resigned 31. July 2023) James Long, TD (President) (Appointed Chairman 1$1 January 2024) Charlotle Miller (Appointed co-optee 111 August 2023) St8ph8n Robinson Marie Shenton (Appoinled 1st August 20231 David Southem Bruce Walker Andrew Wauchope (Resigned 3111 July 20231 Sir Paul Williams, OBE, KStJ, DL (Deputy Presi¢Jent and Cheirman to 31¥1 December 2023) Howard Wilson Page 3 of 22
THE GRAND CHARITY TRUSTEE'S ANNUAL REPORT Executiv• The Executive during thè year to 31$1 March 2024 were: Les Hutchinson, Chief Executive Charles Angus, Group Finance Director Brènda Nurse, Company Secretary Auditor Knox Cropper LLP, Chartered Accountants, 65 Leadenhall Str88t, London, EC3A 2AD 8ankern Coutts & Co, 440 Strand, London, WC2R OQS Investment Managers Royal London Asset Management, 55 Gracechurch Street, London EC3V ORL Sollcltors Stone ng LLP, Boundary Hous8. 91 Charterhouse Stet. London, EC1M 6HR Structura, Governance and Managament Organl8atlon The Charity was established by trust d8ed on 16th Aprll 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 9th September 2015, the trustees approved a deed of amendment and reinstatement and an amended trust deed altering the constitutional and governanc8 arrangem8nts of the charity to refleGt chang95 in truslees and membership with effect from 151 April 2016. The unrestricted assets and liabilities from the Charlty, togather tsth the assets and liabilities of the Transferred B8n8ficiaries Fund, wère transferred to 8 fellow subsidi8ry 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 Ihe unincorporated trust. As the sole trustee, Ihe MCF exercises control over the Charity, and will consolidate the Charity's SuIts in its group accounls. Details of the processes for the appointment, induction and training of the MCF'S truslees are given in the annual report and accounts of that company. Page 4 of 22
THE GRAND CHARITY TRUSTEE'S ANNUAL REPORT Governance and Manag•m•nt All govemance and management capabilities are provided by the MCF and details of th8 relevant committees and processes are provided in the annual report and account5 of that company. Trustees and committees of the MCF address the specific needs of the Charity as part of thelr roles and responsibilities for the MCF. The trustee board and the main committees meet as follows: Boardlcommittee Purpose Meetlngs per Trust8e Board Main decision-making body with ultimate responsibility for the Charit léentification and mili ation of risk. ov8rsi ht of 8Xternal audil Consideration of 8ppIic81ions for grants from organisations reco nised b the Charil Commission Ensuring adequate procedures are in place to manage all as ects of financial lannin controllin and re ortin Supporting the masonic community's fund raising activitl8S to su ort the Charit Maintaining investment strategies to meet the requirements of the Charit ointment and monitorin offund mana ers Consideration of applications from individuals connected wilh the masonic communil for financial relief Determination of execulive and staff & benefits D8v8lopmenl and implementation of slrat8gies lo support the Charity's objectives. In addition, the trustees hold an annual strate ic'awa Audit and Risk Charity Grants Finance Fundraising Investments Masonic Support Remuneration Slralegy The Charity does not employ any staff, with services being prowded by staff 8mploy8d by the MCF. Objectives and Actlvltles Objectlves Th8 Charity is the central grant-maklng cherity 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 th8 Trust88. The Trustee has referred lo the Charity Commission's general guidance on public benefit when reviewing its aims and objective5 and has ensured Ihat its grant-making poliGie5 and activities comply with the requirements Activities Following the transfer of grant making activitl8S to TGC Company in 2017, the sol8 actiwty of the Charty is now to provide administrative services to the Masonic community as laid out OV8rleaf= Page 5 of 22
THE GRAND CHARITY TRUSTEE'S ANNUAL REPORT Actlvltles (Contlnued) Relief Chest Scheme The Relief Chest Scheme (RCS), intrOdUd in 1986, offers indiwdual relief chests to lodges, chapters, provinces and other recognised Masonic organisations, which are used to generate funds for all types of charitable purposes. These furKIs 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 charitablè, or for an individual in distress only at the request of the relief chest holder. Th8 RCS provides vital support to provinces in festival and other appeals, enabling them lo reach their fundraising targets efficiently. It also ensures that all statutory complianc8 and administration requirements, for example, of the Charity Commission. Information Commissioner's Office and HMRC have been meL Inv8Stment in infrastructure and latest technology ensures that the RCS delivers a risk menagement framework in a cost efficient manner. In 2018, RCS launched donor 8dvSsed funds for Individuals. The Indivldual Relief Chest Scheme (IRCS) programme was released in beta version. It is now open to 811 Freemasons, their families and friends. These funds are held by the Masonic Charitable Foundation in a restrictèd 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 exlending the Scheme's positive impact. The Charity is transfomilng Masonic charitable giving to make the process easy and to help give substantsal donations each year to charitable causes. The Charity is committed to helping Fr88masons to make a difference lo the wodd in which they live and to inspire greater generosity from thls community, by offering practical tailored support through its wealth of resources and tools. Maintainin and su ortin the Honorifics Evaluation IT s stem (HONE) RCS designed and developed an application lo manage the honorific programme for the Masonic Charitable Foundation. This IT system is maintained and supported by RCS. Pag8 6 of 22
THE GRAND CHARITY TRUSTEE'S ANNUAL REPORT Achievements and Performance During the year, activity in the RCS included: 2024 2023 Number of Relief Chests Average number of monthly donations into the Scheme Averag8 number of monthly lax reclaims Average number of monthly payments from the Scheme Number of new Relief Chests opened 5,148 45,973 41,698 532 205 5,110 50,642 38,784 416 204 Relief Chest holders utilised th8 Scheme by requesting Gharitable donations as follows. 2024 2023 £000 Masonic Charitable Foundation The Grand Charity (General Fund) The Royal Masonic Trust for Girls and Boys The Royal Masonic Benevolent Institution Masonic Samaritan Fund 11,141 11.625 17 72 198 18 45 121 15 other charitable purposes Total The following achievements during the y8ar hav8 enhanced the support and services that the Relief Chest provides, therefore contributing towards the strategic objectives of the Charily: Implementing the new seven-year strategy for the Relief Chest to promote 8ngag8m8nt and Increase use by donors and potential donors. Engaging in a programrne of community engagement with eight provinces vlsited during the year and holding an open week for London lodges in July 2023. Rolling out the new Relief Chest Online service that allows relief chest holders to access securely their accounts online forenquiries and reporting, and to add second officers lo the account. By the end of Ihe year, 510/0 of Relief Chesl holders had registered for the service. The number of active users had increased to 663 by the end of the year (2023.. 108). Increasing the proportion of donations received electronically from 10% in April 2023 to 17¥0 by the end of the year. Increasing the proporlion of charitable donations paid through the e-voucher system to 66V. from 530/0 in the prior year. Page 7 of 22
THE GRAND CHARITY TRUSTEE'S ANNUAL REPORT Achievements and Performance (continued) Reducing dormanl Relief Chests to 117 at the end of the year, holding funds of18SS than £0.2 M. Promoting 'continuous giving. been f8Stivals with eight provinces signed up and 2,808 direGt debits processed. This will give the provinces ¢oncem8d a "flying start" for when their next festivals are launched. A new document management strategy was implemented allowing for the elimination of paper records held off-sit8 and the prop8r management of electronic records Including deslruction at the appropriate times. Flnanclal Ravlaw Revl•w of the Y•ar Incoming donations of £14.35 M were 5% high8r than prior year. Investment income of £0.89 M was 1880h higher than prior year as a result of signrficantly higher inter8St r8t8S. Expenditure of £16.74 M was 9% higher. Masonic grants of £11.33 M w8r8 5% lower than prior year, whilst charity grants of £5.42 M were 56% higher. The net oufflow was £1.50 M against a prior year outflow of £1.47 M. Reserves Pollcy Following the transfer of accumulated unrestricted reserves to TGC Company, the Charity has become solely the mechanism for continued op8ralion of the R81ief Chest. The policy is to transfer any ongoing residual income from donations and legacies directly lo the MCF immediately following r8c8iPt. Investment Pollcy and Porformance The aim is lo maintain the capital and generate a r8asonabl818v81 of Income by utilising the services of Royal London Asset Management Ltd (RLAM), a qualified asset management fimi regulated by the Flnancial 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, d8posits with approved banks, c8rtificat8s of d8POSit by approved banks and other cash related products. The Royal London Short Teryn Money Market Fund has been used for investing cash Ihat is surplus to immediate operational r8quirem8nts. The Short Term Money Market Fund can only invest in money rnarket in5trumenls. covered bonds, corporat8 bonds {minimum cr8dit raling of A4-l and Giltslsupranational, and is rated by Fitch as an AAA money market fund. For the year ended 31 March 2024, Ihe investment return on the cash was 5.3% after fees. This compares to a benchmark retum of 5.0% (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.. Rlsk Con8 uence Significant unexpected Repulalional damage, loss of financial loss from confidence with key 51akeholders operations arKI impact upon continulng financial su3tainabilil Poor service to beneficiaries and repulaliona1 damage. Withdrawal of ke services from su liers Impacts financial suslainabilily and raputalional damagè with donor8 Mitl ation Strong financial procedures, particularly budgetary planning and control. Overslght from the Finance Committee. Inadequate liquidity lo meet financial commllmenls Significant long-lerm loss in the value of the investment portfolio Cash flow forecasting and liquidity anning within the Investment Slrale9y Appointment of Assel Risk Consultan18 as expert investment advisors, provSding monthly performance reporting and analysis. Oversight from Investment and ert commillees. Strong procedureg and conlrds for processing grants. Oversight from Masonlc ort and Chant Grants commillees UGLE manage and rnonilor networks, Servers and backup systems, and has deployed approprlale defence mechani8ms e.g. firewalls, antivirus etc. Third paty ho$l&d systems lapplicalions have ralevanl controls and security regimes. Information systems are only accessed vla the VPN nelwork andlor mulll-faclor aulhenlicalion protocols. Grants rnad8 outside the Charity'5 Objects and eralin uiéeline¥ Cyberattack on IT systems Repulalional damage, loss of Confidence with kèy stakeholders and otential Iru51ee liabilit Operational disrupllon resulting in financial, rewlalSonal, legal and regulatory damage. MCF'S Infomialion Security Group {ISG) hav8 varSous digital & IT procedures and policie3 in place. Cyber awarenes8 and Irainin ro ramme mandalo for all 81aff. Data protection policy. IT security and HR olicias In lace Financial proGedures, segregation of dutie5, authority limits, IT security, increased awarenes¥ amon st staff MCF Business Continuity Plan Data protection breach Repulalional damage and significant financial enallies Flnancial loss, repulallonal damage, adverse impact upon staff Fraud Unavailabilily of office accommodation Loss of pap8r records from flremoodlng Operations compromised Breach of legal obligations, adverse impact upon operations, potential flnancial nallies Breach of legal obligations, potential financial penalties, breakdown of staff morale and adverse impaci on service rovision Operational breakdown, adverse impact upon staff morale, poor service lo beneficiaries ané potential re ulalional dama Reduced reliance on paper records with increased use of IT. Lack of compliance with employment legislation HR procedures and staff handbook. Induction processes for new Staff. Ongolng management training and Personal Develo menl Review HR procedures.. organisalional and succession planning. Comprehensive documentation of procedures and controls Undue lianCe on key persons Risks a actlV8ly monitored by the Executive and the senior leadership team, and fomially reviewed by the audit and risk committee at their quarterly 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 pag8 6 of this port for the foreseeable future. As part of the corporate plan 2024125, RCS will: Roll out RCS on-llne to the remaining users. Undertake a feasibility Study to improve the efficiency of dlgilal scanning and data capture. Promote further the use of QR codes lo make donations and reduce the amount of gift aKI envelopes for manual processing. Page 10of22
THE GRAND CHARITY STATEMENT OF TRUSTEE'S RESPONSIBILITIES Statement of Responsibilities The Trustee is responsible for preparing the trustee'5 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 th8 trust deed require the Trustee to prepare financial statements for 8ach financial year which give a true and fair view of the state of affairs of tha Charity and of Ihe income and expenditure of the Charity for that yèar. In prèparing these financial statements. the Trustee is required to.. select suitable accounting policies and then apply them consistently,. observe the methods and principles in Accounting and Reporting by Charilies.. Statement of Recommended PractlC8 applicable lo charities preparing their financial stalem8nts in ac¢ordanGe with the Financial Reporting St8ndard applicable in the United Kingdom and Republic of Ireland (FRS102): make judgements and estimates that are reasonable and prudent., slate whether United Kingdom accounting standards have been followed. subject to any material departures disclosed and explained in the financial statements,. and prepare the financial slat8m8nls on the going concern basis unless It Is inappropriate to presume thal the charity will conlinue to operate. The Trustee is responsible for k88ping adequate accounting records that disclose With reasonable accuracy at any time the financial position of the Charity and enable it to ensure thal the financial slalements comply with the Charities Act 2011, the Charity (Accounls and Reports) Regulations 2008 and the prowsions of th8 trust deed. It is also responsible for safeguarding the assets of th8 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 audilor will be put to the members. Approval by Trustee This report. was approved by the Trustee on 121h Septemb8r 2024 and slgned on their behalf by me Longi President and Chairman, MCF Page 11 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 "Chariv) for the year ended 31 March 2024, which comprise the Ststemant of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of Snlcan1 accounting policies. The financial reporting fram8work that has b88n applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Fin8nci81 Reporting S¢andard applic8ble in the UK and RepublK of Ireland (United Kingdom Génerally Accepted Accounting Practice). In our opinion the financial slatemants= give a tru8 and fair view of the stale of the Charills affairs as at 31 March 2024 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 Charities Acl 2011. Basls of oplnlon We conducted our audit in aGcordance with International Standards on Auditing (UK) {ISAs (UK)) and applicabl8 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 r81evant to our audit of the financial stalamanls 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 audlt evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons r•latlng lo golng concern In auditing the financial stslements. W8 hav8 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 idents'fied any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on th8 charitys ability to continue as a going concern for a period of at least twelve months from when the financial statements a authorlsed for issue. Our responsibilities and the responsibilities of the Trus188 Wlth respect to going concern are described in the relevant sections of this report. other inforniatlon The other information comprises the infomation included in the annual report. other than the financial statements and our auditorfs report thereon. The Trustee is responsible for the other infomation. 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 nol cover the other inforniation and we do nol express any form of assurance conclusion thereon. Our responsibility is to read the other information and. in doing so. consider whelh8r the other infomiation is materially inconsistent with the financial statements or our knowledge obtained in the audit or otheiS8 appears to be materially misstated. If w8 id8ntify such material inconsistencies or apparent material misstslements, we are required lo determine whèther there is a material misstatement in the financial slatements themselves. If, based on the work we have performed, we conclude that there is a mat8rial misstatement of this oth8r information, we are required lo report that fact. We have nothing to report in this regard. Matters on whlch we are roqulred to report by oxception W& h8ve 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 ststements is inconsistent in any malerial respect with the Iruslee's report., or sufficient accounting records have not been kept; or the financi81 statements are not in agreement with the accounting records., or we have not received all the inform81ion and explanations we require for our audit. R•sponslb115tl08 of Trusteo As explained more fully in the Trustee's Responsibilities Statem8nt 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 intern81 control as the Trustee d8termin8s is necessary to 8nable the preparation of financial statements that are free from material misstatement. whether due to fraud or error. In preparlng the flnanclal slatemenls, the Trustee is responsible for assessing the Charilws abillty to continue as a going concern, disclosing, as applicable, matters related to going concam and using the going concem basis of accounting unless the Truste8 either intends to liquidate the company or to Cease operations, or has no realistic alternative but lo do so. Auditor's re8ponsibilitio8 for tho audlt of Iho flnanclal statements We have been appointed as auditor undèr section 144 of the Charit18s Act 2011 and report in accordance with the Acl and relevant regulations made or having effect thereunder. Our obj8Ctives are to obtain reasonable assuran about whether the financial statements as a whole are free from material misstatement, whether du8 lo fraud or error, and lo 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 Gonducted in accordance with ISAS (UK) Mll always detect a malerial misslatement 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 influ8nce the economic decisions of users taken on the basis of these financial statements. Page 13of22
THE GRAND CHARITY REPORT OF THE INDEPENDENT AUDITOR TO TH& TRUSTEE OF THE GRAND CHARITY Irregularities, including fraud, are instances of non-compliance with l aws and regulations. We desig procedures in line with our responsibilities, Outlined above. lo detect rnaterial misstatements In resp&ot irregularities, including fraud. The extent to which our procgdures are capable of detectin Irregularities, including fraud is detailed bèlow.. The Charity is required to comply wilh charity law and, based on our knowledge of its activities we idenlified that the legal requirem8nt to accurately account for any restricted funds was of ke signrficanc8. We galned an understanding of how the charity complied with its legal and regulatory fram8work including the requirement to prop8rly account for any restricted funds, through discussions witPi management and a review of the documented policies. proced Ljres and controls. The audit team. which is experienced in the audit of Gharities, considered the charity's susceptibility to malerial misslat8ment and how fraud may O¢CLJ r. Our considerations included the risk of management overrida. Our approach was to check that all reslrict8d income was properly identified and separately accounted for and to ensure that only valid and appropriate expenditure was charged to restricterj funds. This included reviewing joumal adjustments and unusual transaction8. A further description of our responsibilities for the audit of the financial st8tements is localed on the Financial Reporting Council's website at.. www.frc.or audltorsr ie This descripts'on foms part of our auditor'5 report. Use of the audlt report This report Is made solely to the Charity's trustee. as a body, in accordan with Part 4 of the Charities (Accounts and Reports) R8gulatlons 2008. Our audit work ha5 been undertaken, so that we might state to th8 Charity's trustee those matters we are raquired to stale lo them in an auditor's report and for no other purpos8. To th8 fullest extent permitted by 18w, we do not aGc8pI or assume responsibility lo anyone other Ihan the Charity and the Charity's Irustee as a body. for our audit work. for this report or for the opinions we have formed. kNfGwf LLP Knox Cropper LLP Slalulory Auditor 65 Leadenhall Stre8t London EC3A 2AD li M Semlf ?¢?y Knox Cropper LLP is eligible for appointment as auditor of the charity by rtue of its eligibility for appointment as auditor of a company under Section 1212 of Ihe Companies Act 2008. Page 14of22
THE GRAND CHARITY STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 MARCH 2024 Nole 2024 £'ooo 2023 £'ooo INCOME Donations and leg8cles Investment income 14,354 891 13.617 309 Total Incom• 13,926 EXPENDITURE Charltablè actlvltles Mesonic grants Non-masonic grants Total oxpendltur• (11,327) (5,416) (11,930) (3.470) 16,743 15.400 NET MOVEMENT IN FUNDS 1.498 1,474 Total funds brought forward Total funds carrlad forward 21,312 22,786 19,814 21,312 All income and expenditure derive from continuing activities and all gainsllos6e8 ar8 induded in the statement of finanaal activities The not85 on pages 18 to 22 form part of these financial statements. Page 15 of22
THE GRAND CHARITY BALANCE SHEET as al 31 MARCH 2024 Note March 2024 £'ooo March 2023 £'cKJo CURRENT ASSETS Debtors Short term deposits Cash at bank and in hand 750 17,972 1,092 500 19,222 1,590 19,814 CURRENT LIABILITIES Creditors falling due within one year Totsl n•t a•••ts 19,814 21,312 CHARITABLE FUNDS R08tr1cted Incom• fund8 Relief Chest 19,814 21.312 Total charltabl• fund8 19.814 21,312 The fin8nci81 statements were approved and authorised for issue by the Truste8 Board on 12th September 2024 and soned on their b8half by: Jam Long TD Clive Emerson President and Chairman Treasurer The notes on page5 18 to 22 fom part of these financial staternents Page 16 of22
r• THE GRAND CHARITY STATEMENT OF CASH FLOWS YEAR ENDED 31 MARCH 2024 2024 £'ooo 2023 £'ooo Operatlng kntivities Net cash provlded byl(u8ed in) Oporating Actlvltles 1.961 Cash flow8 from Invgstlng actlvlties Dlwdends and int8r8St from investments 891 309 Net cash provlded byl(u80d In) InstIng Actlvltl•8 891 309 Change In cash and cash oqulvalont8 In tho roportlng perlod Cash and cash equivalents at the beginning of the reporting period Cash and ca8h equlvalont8 at tho ènd of the reporting perlod 11,748> 11,652) 20,812 22,464 20,812 Nolos on th• cash flow 8tatamont Reconclllatlon of net Incomo1(expgndltur•) to net cash fl¢>w from operatlng actlvltl08 Nel movernent in funds as per the Statement of Financial AGtivities 11.498) (1,474) Adjuslmenls for.. Dividends, interest and rents from investments (Increase) in debtors (Decrease) in creditors Net cash provldod byl(used In) Oporatlng Activiti08 (891) (250) 1309) {1741 (4) 2,639 Analysls of cash and cash equlvalonts Short term deposits Cash at bank and in hand 17,972 1,092 19,222 1.590 Total cash and cash oqulvalents 19.064 20,812 Page 17 of22
THE GRAND CHARITY NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES (a) Statement of compllanco The financial stsl8m8nts of The Grand Charity (Iha 'charit) 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. I'FRS 102°). Additionally, they comply with the Statement of Recommended Practice 'Accounling 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) Basls of proparation 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 lo be Pounds Sterling because that is th8 currency of the primary economic environment in which the Charity operates. (c) Golng concom The Trustee has assessed whether the use of the golng concern assumption is appropriate in preparing Inese Tinanciai staiements. Trie Tru31e¥ Floii 1118de Iriib ta¥¥ts¥¥iii¥iil iii Itl0VL tv ix V¥1 ILIU of one y8ar from the date of approval of these financial statement5. The Trustee has concludad that there are no malerial uncertainties r81at8d to events or conditions that may cast significant doubt on the abilily of the Charity to continue as a going concem. The Trustee is of th8 opinion that the charity will have sufficient resources to meel its liabilities as they fall due. Page 18 of22
THE GRAND CHARITY NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 {d) Incomlng r880urces 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 lo each of the Charity's revenue channels have been met. as described below.. Monetary donations are brought into account when received. Legacies a recognised where there has been a grant of probate, the executors have identified that there are sufficient assets in the estate after settlèment of liabilities to pay the legacy and any conditions attached to the legacy are either in control of the Charity or have been rnet. Legaci8s subject to the interest of a life tenant are nol recognised during the lifetime of the life tenant. (e) Resource$ expendod 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 resourc8s expended are recognised on an accruals basis, with the exception of grants as noted b810w. Charitable activlties are split between masonic activities and grants awarded to external institutions {designated as 'non-Masonic' within the SOFA). Masonic activities include the paym8nt of grants diredly to beneficiaries togeth8r 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 not8 4. Grants a cOgniSed as 8xpenditure in the year In which the grant Is form811y approved by the Charity and has been communicat8d in writing to the recipient. exGept to the extent that il is subject to conditions that enable the Charity to revoke the award. The provision for multi-year grants is recognised at its prèsent value when s8ttl8ment is due over more than one year from the date of the award, the are no unfulfilled performance conditions under the control of the Charity that would permit il to avoid making future payments, settlement is probable and the effect of discounting is material. The discount rale used is the long-term retum of inflation plus 4 p8rcent used as the target for the Charily's inv8Stment portfolio. Page 19 of22
THE GRAND CHARITY NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 (f) Employ80 beneflts All staff are employed by the parent charity, The Masonic Charitsble Foundation, and no recharges are made lo the Charity. Informatlon relating to those employees is given in the accounts of the Masonic Charitsble Foundation. (g) Fund accountlng RestriGt8d funds are subject to specrfic conditions impos8d by the donors andlor for the purposes for which they are raised. Unrestricted fund8 may be utilised for any purpose in accordance With the charitsble objectives of th8 Charity. (h) Inv08tmants Investments are recognised initially at fair value whlch is nomally the transaction price excluding transaction costs. Subsequently, they are stated at market value. All r8alised and unrealised gains and losses are recognis8d within the Statement of Financial Aclivi118s. Investments which the Charity holds for resale or pending their sale and cash or cash equivalents with a rnalurity dat8 of less than one vear. which are held for inveslmenl purposes, are disclosed as current asset nvestmenis. (i) Flnanclal a880ts and Ilablllt108 The Charity has chosen to adopl Sacllons 11 and 12 of FRS 102 in respect of financial instruments. Financial assets and liabilities are recognised wh8n Ihe Charity becom8s a party lo the contractual provisions of the instrument. Financial assets and liabililies which qualify as basic financial instruments ar8 initially recognisèd at the selllement amount after any trade discounts. They are subsequently valued al amortised cost and assessed for impairrnent et the end of each r8POrting period. Wher8 settlement is not 8xpected within 12 months of the balance sheet date, then the asset or liability is discounted using the long temi return of inflation plus 4 percenl used as the target for the Charity's investment portfolio. Basic financial instruments include debtors, cash and creditors within the balance shèet. (J.) Provisions Provisions ara recognised vthen the Charity has a present18gal or construcllve obligation as a result of past events. il is probable that an outhow of resour$ will bè required to settlè the obligation and the amount has been reliably estimaled. Prowsions 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 2024 {k) Forolgn currnncie8 Transactions denominated in foreign currencies a translated into Pounds Sterling at the 8x¢hange rates ruling at the date of transaction. Monetary assets and liabilities denominated in foreign currencies are translated into Pounds Sterling al the rate ruling at the balancè sheet date. All foreign exchange gains and losses, realised and unrealised. are recognised in the Statement of Financial Activities. (l) TaxatSon The Charity Is exernpt 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 exlenl thal Ihey are applied to its charitable activities. The Charity is unable lo recover Valued Added Tax (VAT) incurred on expenditure The amount of VAT that cannot be recov8r8d is included within the underlying cost to which it relates. DONATIONS AND LEGACIES 2024 £'ooo 2023 £'ooo Donations to R81i8f Chest Fund 14,354 13.617 14,354 13.617 INVESTMENT INCOME 2024 £'ooo 2023 £'ooo Interest on bank deposits 891 309 891 309 Page 21 of 22
THE GRAND CHARITY NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 4. CHARITABLE ACTIVITIES 2024 £'ooo 2023 £'ooo Masonic Relief Chest 11,327 11,930 11,327 11,930 Non-masonlc Armed Forces Arts, Culture & Sport Disaster Rellef Education Environment. Conservation and Heritage Health and Disability Hospices other Charitable Purposes Rescue Services ResearGh 72 27 117 303 20 1,673 217 608 351 82 79 52 366 22 1,969 336 489 1.945 92 3,470 DEBTORS March 2024 £'ooo March 2023 £'ooo Prepayments and 8ccru8d Income 750 500 750 500 RELATED PARTY TRANSACTIONS Under the Relief Chest Scheme the Charfty has made charrtable donations lo the MCF and oth8r fellow subsidiaries on behalf of its holders as set out on page 7 of the truslees, report. The MCF has borne all the adminislrative costs of supporting the Charity. 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 Charily. can be obtained from the lStered office of the Charity. Pag8 22 of 22