# ROYAL MASONIC TRUST FOR GIRLS AND BOYS ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Charity Number: 285836 ROYAL MASONIC TRUST FOR GIRLS AND BOYS |Contents|Page| |---|---| |Trustee’s Annual Report|3| |Statement ofTrustee’s Responsibilities|8| |Auditor's Report|9| |Statement of Financial Activities|12| |Balance Sheet|13| |NotestotheFinancialStatements|14| Page 2 of 16 ## ROYAL MASONIC TRUST FOR GIRLS AND BOYS ## TRUSTEE’S ANNUAL REPORT The trustee is pleased to submit its report for the year ended 31%t March 2021. ## Reference and Administrative Information ## Name and Registered Office The name of the charity is the Royal Masonic Trust for Girls and Boys (the “Charity’) and it has its registered office at 60 Great Queen Street, London, WC2B 5AZ. ## Trustees The trustee who served during the whole of the year was: - The Masonic Charitable Foundation (“MCF”) (Corporate Trustee, Registered Charity No. 1164703, Company Number 09751836) The trustees of the MCF who served during the year were: - John Boyington, CBE - Sinead Brophy - Charles A.G. Cunnington - Timothy D. Dallas-Chapman - Simon D’O. Duckworth, OBE, DL - Clive Emerson - Dr Simon Fellerman (appointed 1st September 2020) - Alan P. Graham, MBE - Antony D.G. Harvey - Christopher Head - Michael R. Heenan (Treasurer) - Richard M. Hone, QC (President) - John E. Hornblow (resigned 25" August 2020) - James H. Newman, OBE (Deputy President and Chairman) - Stephen Robinson (appointed 8" March 2021) - Howard lan Sabin - Nigel J. Vaughan - David C. Watson - Andrew G. Wauchope - - Christopher G. White (resigned 25" August 2020) - Sir Paul Williams, OBE, KStJ, DL - - Howard G. Wilson James H. Newman resigned as Chairman of the MCF on 31% March 2021 and Trustee of the MCF on 28" April 2021, and Sir Paul Williams was appointed Chairman on 1* April 2021. Page 3 of 16 ## ROYAL MASONIC TRUST FOR GIRLS AND BOYS ## TRUSTEES ANNUAL REPORT ## Executive The Executive during the year to 31%t March 2021 were: - David Innes, Chief Executive (resigned 18'" September 2020) - Les Hutchinson, Chief Operating Officer to, and Chief Executive from 21%* September 2020 - Charles Angus, Group Finance Director - Annette Campbell, Company Secretary ## Auditor Knox Cropper LLP, Chartered Accountants, 65 Leadenhall Street, London, EC3A 2AD ## Bankers Barclays Bank Plc, Level 28, 1 Churchill Place, Canary Wharf, | andon, F14 5HP National Westminster Bank Plc, Bloomsbury Parr’s Branch, 214 High Holborn, London, WC1V 7BX ## Solicitors Stone King LLP, Boundary House, 91 Charterhouse Street, London, EC1M 6HR Page 4 of 16 ## ROYAL MASONIC TRUST FOR GIRLS AND BOYS ## TRUSTEES ANNUAL REPORT ## Structure, Governance and Management ## Organisation The Charity was established by trust deed on 8"" September 1982 by the trustees of the Royal Masonic Institution for Girls and the Royal Masonic Institution for Boys. Ata meeting held on 18" February 2016, 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% April 2016. The assets and liabilities from the Charity were transferred to a subsidiary company of the same name (charity number 1170336 and company number 01705033; hereafter the “RMTGB Company’) with effect from 18 February 2017 following a resolution from the trustees made on 15 December 2016. From that point, the Charity has ceased its charitable activities and exists solely to receive income from donations and legacies that are passed onto the RMTGB Company. 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. ## 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|||| |---|---|---|---|---| |||per||year| |Trustee Board|Main decision-making body with ultimate responsibility forthe|||| ||Charit|||| |Auditand Risk|Identification and mitigation of risk, oversight ofexternal audit|||| |Charity Grants|Consideration of applications forgrants from organisations||4|| ||recognised by
the Charity
Commission|||| |Finance|Ensuring adequate procedures are in place to manage all aspects||4|| ||of financial planning, controlling and reporting.|||| |Fundraising|Supporting the masonic community's fund raising activities to||4|| ||support the Charit|||| ||Maintaining investment strategies to meet the requirements ofthe||4|| ||Charity, appointment and monitoring offund managers|||| |Masonic Support|Consideration of applications from individuals connected with the||4|| ||masonic community
for financial relief|||| |Property(RMTGB_ | Development and execution of strategies to optimise the returns
onl
from the Charity’s property
portfolio|||4|| ||Determination of executive and staff pay
& benefits|||| |Strategy|Development and implementation of strategies to supportthe|||| ||Charity’s objectives. !n addition, the trustees hold an annual|||| ||Strategic ‘away
day’
-|||| **----- Start of picture text -----**
|
**----- End of picture text -----**
Page 5 of 16 ## ROYAL MASONIC TRUST FOR GIRLS AND BOYS ## TRUSTEE’S ANNUAL REPORT ## Governance and Management (continued) The Charity does not employ any staff, with services being provided by staff employed by the MCF. ## Objectives and Activities ## Objects The objects of the Charity shall be for the relief of poverty and the advancement of education by: - ° the assistance of such children (including adopted children, step-children and children of the family) of any age of Freemasons under the United Grand Lodge of Ancient Free and Accepted Masons of England as the trustees consider from time to time are in need of assistance; - ° if and to the extent to which the resources of the Charity are not used for the foregoing purpose, assisting any child or children of any age whether or not the child or children of a Freemason. These objects are now served by the RMTGB Company. In planning the Charity’s objectives for the year, the trustee has had regard to the guidance on public benefit issued by the Charity Commission. ## Financial Review ## Review of the Year Income of £1.34 M (2020: £1.74 M) was received during the year from festivals and legacies. £.1.34 M was transferred to the RMTGB Company leaving £ nil in the bank account at the year end. ## Reserves Policy Following the transfer of accumulated reserves to the RMTGB Company in February 2017, the Charity ceased its charitable activities. The policy is to transfer any ongoing residual income from donations and legacies directly to the RMTGB Company immediately following receipt. Page 6 of 16 ## ROYAL MASONIC TRUST FOR GIRLS AND BOYS TRUSTEE’S ANNUAL REPORT ## Principal Risks and Mitigation |The principal risks identified and agreed actions to mitigate are shown in the following table:|The principal risks identified and agreed actions to mitigate are shown in the following table:|The principal risks identified and agreed actions to mitigate are shown in the following table:| |---|---|---| |[C*éRiskSSSSCS~dSSC*C*‘“‘;*CCtseqernce
=|
sCMiitigation=
Significant unexpected
Reputational damage, loss of
Strong financial procedures,
financial loss from
confidence with key stakeholders | particularly budgetary planning and
operations
| and impact upon continuing
control. Oversightfrom the Finance
financial sustainabilit
Committee.||| |Inadequate liquidity to
meetfinancial|Poorservice to beneficiaries and
reputational damage. Withdrawal||Cash flowforecasting and liquidity
| planning within the Investment| |commitments
of key
services from suppliers
Significant long-term loss _| Impacts financial sustainability
in the value ofthe
and reputational damage with||Strateg
Appointment ofAsset Risk
Consultants as expert investment| |investment portfolio|donors|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. Oversightfrom
Masonic Supportand Charity| |||Grants committees| |Cyberattack on ITsystems| All keyoperations are
compromised||United Grand Lodge ofEngland
(“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| ||significant financial penalties|and HR policies in place| |Fraud|Financial loss, reputational|Financial procedures, segregation| ||damage, adverse impact upon|ofduties, authority limits, IT| ||staff|security, increased awareness
amongst staff| |accommodation||| |Loss ofpaper records
from fire/flooding|Breach of legal obligations,
adverse impact upon operations,|Reduced reliance on paper records
| with increased use of IT.| ||potential financial penalties|| |Lack ofcompliance with
employment legislation|Breach of legal obligations,
potential financial penalties,|HR procedures and staff
handbook. Induction processes for| ||breakdown of staff morale and|new staff. Ongoing management| ||adverse impact upon service|training and Personal Development| ||provision|Review| |Undue relianceon key
persons|Operational breakdown, adverse
impact upon staff morale, poor
service to beneficiaries and|| HR procedures: organisational and
succession planning.
Comprehensive documentation of| ||potentialreputationaldamage|proceduresandcontrols| 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 7 of 16 ## ROYAL MASONIC TRUST FOR GIRLS AND BOYS STATEMENT OF TRUSTEE’S RESPONSIBILITIES ## Statement of Responsibilities The trustee is responsible for preparing the trustee’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 true 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 trustee is required to: - e select suitable accounting policies and then apply them consistently; - e observe the methods and principles in Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102); - ® make judgements and estimates that are reasonable and prudent; - e state whether United Kingdom accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - ® prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue to operate. The trustee is responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable it to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. It 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. ## Auditor A resolution proposing that Knox Cropper LLP be reappointed as auditor will be put to the members. ## Approval by Trustee This report, was approved by the trustee on 9"" September 2021 and signed on their behalf by ## ps \e\ blend Sir Paul Williams, OBE, KStJ, DL ## Chairman, MCF Page 8 of 16 ## ROYAL MASONIC TRUST FOR GIRLS AND BOYS REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEE OF THE ROYAL MASONIC TRUST FOR GIRLS AND BOYS We have audited the financial statements of the Royal Masonic Trust for Girls and Boys (the “Charity’) for the year ended 31 March 2021 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: - e give a true and fair view of the state of the Charity's affairs as at 31 March 2021 and of its incoming resources and application of resources for the year then ended; - e have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - ° have been prepared in accordance with the Charities Act 2011. ## 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 9 of 16 ## ROYAL MASONIC TRUST FOR GIRLS AND BOYS ## REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEE OF THE ROYAL MASONIC TRUST FOR GIRLS AND BOYS 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 whetherthe 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: ® the information given in the financial statements is inconsistent in any material respect with the trustee’s report; or ° sufficient accounting records have not been kept; or ° the financial statements are not in agreement with the accounting records; or e we have not received all the information and explanations we require for our audit. ## Responsibilities of Trustee As explained more fully in the Trustee’s Responsibilities Statement set out on page 8, 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 10 of 16 ## ROYAL MASONIC TRUST FOR GIRLS AND BOYS REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEE OF THE ROYAL MASONIC TRUST FOR GIRLS AND BOYS 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: - e The Charity is required to comply with charity law and, based on our knowledge of its activities, we identified that the legal requirement to accurately account for any restricted funds was of key significance. - e We gained an understanding of how the charity complied with its legal and regulatory framework, including the requirement to properly account for any restricted funds, through discussions with management and a review of the documented policies, procedures and controls. - e The audit team, which is experienced in the audit of charities, considered the charity's susceptibility to material misstatement and how fraud may occur. Our considerations included the risk of management override. - e Our approach was to check that all restricted income was properly identified and separately accounted for and to ensure that only valid and appropriate expenditure was charged to restricted funds. This included reviewing journal adjustments and unusual transactions. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. ## Use of the audit report This report is made solely to the Charity’s trustee, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken, so that we might state to the Charity’s trustee 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 trustee as a body, for our audit work, for this report or for the opinions we have formed. mer Creppev UF Knox Cropper LLP Statutory Auditor 65 Leadenhall Street London EC3A 2AD ## ofa 22\ Knox Cropper LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. Page 11 of 16 ## ROYAL MASONIC TRUST FOR GIRLS AND BOYS ## STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 MARCH 2021 ||Note|2021|2020| |---|---|---|---| |||£000|£000| |INCOME|||| |Donations and legacies|2|1,339|1,737| |Total income||1,339|1,/37| |Transferout to Incorporated Charity||(1,339)|(1,737)| |NETMOVEMENT IN FUNDS||0|0| |Total funds brought forward||0|0| |Totalfundscarriedforward||0|0| All income and expenditure derive from continuing activities and all gains/losses are included in the statement of financial activities The notes on pages 14 to 16 form part of these financial statements Page 12 of 16 ## ROYAL MASONIC TRUST FOR GIRLS AND BOYS ## BALANCE SHEET as at 31 MARCH 2021 March 2021 March 2020 £'000 £'000 ## CURRENT ASSETS Cash at bank and in hand 0 0 Total net assets Qe CHARITABLE FUNDS Unrestricted funds General reserves 0 0 Total charitable funds 0 0 The financial statements were approved and authorised for issue by the Trustee Board on 9" September 2021 and signed on its behalf by: Sir Paul Williams, OBE, KStJ, DL ## Chairman ## Michael Heenan ## Treasurer The notes on pages 14 to 16 form part of these financial statements . Page 13 of 16 ## ROYAL MASONIC TRUST FOR GIRLS AND BOYS ## NOTES TO THE FINANCIAL STATEMENTS ## YEAR ENDED 31 MARCH 2021 1. ACCOUNTING POLICIES ## (a) Statement of compliance The financial statements of the Royal Masonic Trust for Girls and Boys (the “Charity’) have been prepared in accordance with annlicahle UK accounting standards, including Financial Renorting 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 |he financial statements have been prepared on a going concern basis under the historical cost convention, 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. The Charity ceased trading following transfer of its assets and liabilities to the RMTGB Company on 1° February 2017. All assets and liabilities were transferred at book value. - (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 has 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. ## (d) ## 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. ## (e) Fund accounting Unrestricted funds may be utilised for any purpose in accordance with the charitable objectives of the Charity. Page 14 of 16 3. 4. ## ROYAL MASONIC TRUST FOR GIRLS AND BOYS ## NOTES TO THE FINANCIAL STATEMENTS ## YEAR ENDED 31 MARCH 2021 ## (f) 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 becomesa 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. ## (g) 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|2021|2020| |---|---|---|---|---| ||||£'000|£'000| |Festivals|||947|1,650| |Legacies|||392|87| ||||1,339|1,737| ## RELATED PARTY TRANSACTIONS During the period donations and legacies totalling £1.34 M received by the Charity were passed on to the RMTGB Company. The MCF has borne all the administrative costs of supporting the Charity, as well as its fellow subsidiaries. ## COVID-19 PANDEMIC Suspension of lodge activities as a result of the Covid-19 pandemic is expected to reduce income over the next year. This will reduce the value of transfers to the RMTGB Company. Page 15 of 16 ROYAL MASONIC TRUST FOR GIRLS AND BOYS ## 5. 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. Page 16 of 16