| Contents | Page | ||
| Trustee's | Annual Report |
||
| Statement | ofTrustee's | Responsibilities | 12 |
| Auditor's | Report | 13 | |
| Statement | of Financial | Activities | |
| Balance Sheet | 17 | ||
| Statement | ofCash Flows | 18 | |
| Notes to the Financial | Statements | 19 |
| or the MCF. The tru | stee board and the main com | mittees meet |
as follows: | |||||
|---|---|---|---|---|---|---|---|---|
| Board/Committee | Purpose | Meetings | per | |||||
| ear | ||||||||
| Trustee Board | Main decision-making body |
with ultimate | responsibility | for | the | |||
| Charit | ||||||||
| Audit and Risk | Identification and miti ation |
of risk oversi | ht ofexternal | audit | ||||
| Finance | Ensuring adequate procedures are in place to manage |
all | ||||||
| as ects offinancial lannin |
controllin | and re ortin | . | |||||
| Investments | Maintaining investment strategies to meet the requirements |
of | ||||||
| the Charit a ointment and monitorin |
offund mana | ers | ||||||
| Property | Development and execution from the Charit 's ro ert |
of strategies ortfolio |
to optimise | the returns | ||||
| Strategy | Development and implementation ofstrategies to support the Charit 's ob'ectives. |
| own in the fo |
own in the fo |
llowing tab |
le: | |||||
|---|---|---|---|---|---|---|---|---|
| Asset | Class | Strategic | Benchmark | Actual 31" | ||||
| Allocation | March | |||||||
| 2021 | ||||||||
| Cash | 0.00% | 7 dav LIBID | 370% | |||||
| Fixed Income | 7.50% | FTSE UK World Gov. Bond Index GBP | 5 10% | |||||
| International | E uit | 28.75% | MSCI World | ex UK NR GBP | 5550% | |||
| Int'nl E uit | GBPhed | ed | 12.00% | MSCI World | ex UK Hed ed NR |
GBP | 5.10% | |
| U.K. E uit | 18.00% | MSCI UK E | ult NR GBP |
18.60% | ||||
| Eme in |
Market E uit | 12.50% | MSCIEmer | in Markets E uit |
NRGBP | 3.10% | ||
| Global E uit | Hed e | 13.75% | HFRX Global | E uit Hed eGBP |
P PP% | |||
| Alternative | Investments | 3.75% | HFRX Global | Hed e Fulld GBP | 6.80% | |||
| Pro ert | 3.75% | IA UK Direct | Pro ert TR |
2.10% | ||||
| 10000% | 1PP P% |
| MCF CAIF | RLAM | RLAM | RLAM | RLAM | RLAM | RLAM | CCLA | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Short | Term | Cash | Plus | Enhanced | ||||||||
| Fund at 31*' March 2021 | f11.66 M | E Nil | 6 Nil | 6 Nil | E Nil | |||||||
| Investment | approach | Steady | Capital | Capital | Capital | Income & | ||||||
| Growth | Protection | Protection | Protection | long-term | ||||||||
| Multi-Asset | Capital | |||||||||||
| Growth | ||||||||||||
| Benchmark | Composite | SONIA | SONIA | SONIA | MSCI/ARE F | |||||||
| UK other | ||||||||||||
| balanced | ||||||||||||
| ro ert | ||||||||||||
| Peer Group | ARC | None | None | None | ARC | |||||||
| Charity | Charity | |||||||||||
| GBP | GBP | |||||||||||
| Steady | Steady | |||||||||||
| Growth | Growth | |||||||||||
| Return | for the | ear | 27.90% | 0 | 17% | 1.38% | 2.63% | 3.00% | ||||
| Benchmark | return for | ear | 26 00% | 0.06% | 0.06% | 0.06% | 5 PP % | |||||
| Peer | rou | returnfor | ar | 24.50% | N/A | N/A | N/A | N/A | ||||
| 3 ear | return | 24.70'/o | 057% | 096% | 1 50% | 12.50% | ||||||
| 3 ear | benchmark | 20.80% | 0.41% | P41% | 0.41% | 41P% | ||||||
| 3 ear | eer | rou | 1g 10% | N/A | N/A | N/A | N/A |
| he princi | pal risk |
pal risk |
pal risk |
s id | en | tified | and agreed | actions to miti | ga | te are | sho | wn in the following table: |
|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Risk | Conse uence |
Miti ation | |||||||||||
| 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 | financial | control. Oversight from the Finance |
|||||||||
| sustainabilit | Committee. | ||||||||||||
| Inadequate | liquidity | to | Poor service to beneficiaries | and | Cash flow forecasting and liquidity |
||||||||
| meet financial | reputational | damage. Withdrawal |
of | planning within the Investment |
|||||||||
| commitments | ke services from su liars |
Strate | |||||||||||
| Significant | long-term | loss | Impacts financial sustainability and |
Appointment ofAsset Risk |
|||||||||
| in the value | ofthe | reputational | damage with |
donors | Consultants as expert investment |
||||||||
| investment | portfolio | advisors, providing monthly |
|||||||||||
| performance reporting and |
|||||||||||||
| analysis. Oversight from |
|||||||||||||
| investment and property |
|||||||||||||
| committees. | |||||||||||||
| Grants made | outside | the | Reputational damage, loss |
of | Strong procedures and controls |
for | |||||||
| Charity's | Objects and | confidence | with key stakeholders | processing grants. Oversight from |
|||||||||
| operating | guidelines | and potential trustee liability |
Masonic Support and Charity | ||||||||||
| Grants committees | |||||||||||||
| Cyberattack | on | IT | All key operations are compromised |
United Grand Lodge of England | |||||||||
| systems | ("UGLE")and IT network providers |
||||||||||||
| have strong security procedures | in | ||||||||||||
| place coverillg access, plolel Llolv |
|||||||||||||
| backups and disaster recovery |
|||||||||||||
| facilities. Mandatory cybersecurity |
|||||||||||||
| trainin in lace for all staff |
|||||||||||||
| Data protection | breach | Reputational damage and |
significant | Data protection policy, ITsecurity |
|||||||||
| financial | enalties | and HR oliciesin lace |
|||||||||||
| Fraud | Financial loss, reputational | damage, | Financial procedures, segregation |
||||||||||
| adverse impact upon staff |
ofduties, authority limits, IT |
||||||||||||
| security, increased awareness |
|||||||||||||
| amongst staff |
|||||||||||||
| Unavailability | of | office | Operations | compromised | UGLE Business Continuity Plan |
||||||||
| accommodation | |||||||||||||
| Loss of | paper | records | Breach of | legal obligations, | adverse | Reduced reliance on paper records | |||||||
| from fire/flooding | impact upon operations, potential |
with increased use of IT. | |||||||||||
| financial | enalties | ||||||||||||
| Lack of | compliance | with | Breach of | legal obligations, | potential | HR procedures and staff |
|||||||
| employment | legislation | financial penalties, breakdown of |
handbook. Induction processes |
for | |||||||||
| staff morale and adverse | impact | new staff. Ongoing management |
|||||||||||
| upon service provision | training and Personal Development |
||||||||||||
| Review | |||||||||||||
| Undue reliance | on key | Operational breakdown, adverse |
HR procedures: organisational |
and | |||||||||
| persons | impact upon staff morale, | poor | succession planning. |
||||||||||
| service to | beneficiaries and |
potential | Comprehensive documentation |
of | |||||||||
| reputational | damage | procedures and controls |
| Note | Unrestdcted | Endowment | Total | Total | |||
|---|---|---|---|---|---|---|---|
| funds | funds | Funds | Funds | ||||
| 2021 | 2021 | 2021 | 2020 | ||||
| 5'000 | 8'000 | f.'000 | E'000 | ||||
| INCOME | |||||||
| Donations | 57 | 278 | 335 | 0 | |||
| Investment income |
(79) | 240 | 161 | 1,799 | |||
| Total income | 22 | 518 | 496 | 1,799 | |||
| EXPENDITURE | |||||||
| Investment management |
costs | 0 | (56) | (56) | (58) | ||
| 0 | 56 | 56 | 58 | ||||
| Charitable activities |
|||||||
| Masonic grants | (10) | 0 | (10) | (17) | |||
| Non-Masonic grants |
(1,391) | 0 | (1,391) | (1,583) | |||
| 1,401 | 0 | 1,401 | 1,600 | ||||
| Total expenditure | 1,401 | 56 | 1,457 | 1,658 | |||
| Net gains/(losses) | on investments | 7 | 0 | 3,827 | 3827 | 14858 | |
| Net income/(expenditure) | (1,423) | 4,289 | 2,866 | (14,717) | |||
| Transfers between |
funds | 3,556 | (3,556) | 0 | 0 | ||
| NET MOVEMENT | IN FUNDS | 2,133 | 733 | 2,866 | 14,717 | ||
| Total funds brought | forward | (1,142) | 13,065 | 11,923 | 26,640 | ||
| Total funds carried forward | 991 | 13,798 | 14,789 | 11,923 |
| RMIG ENDOWMENT TRUST | |||
|---|---|---|---|
| BALANCE SHEET as at 31 March 2021 | Note | March 2021 | March 2020 |
| f'000 | E'000 | ||
| FIXEDASSETS | |||
| Social investment property |
2,138 | 909 | |
| Investments | 11,659 | 12,154 | |
| 13,797 | 13,063 | ||
| CURRENT ASSETS | |||
| Cash at bank and in hand | 1,739 | 436 | |
| 1 739 | 436 | ||
| CURRENT LIABILITIES | |||
| Creditors falling due within one year | (747) | (740) | |
| NET CURRENT ASSETS | 992 | 304 | |
| TOTAL ASSETSLESSCURRENT LIABILITIES | 14,789 | 12,759 | |
| Creditors falling due after one year | (836) | ||
| Total net assets | 14,789 | 11,923 | |
| CHARITABLE FUNDS | |||
| Endowment funds |
|||
| Permanent endowment |
10,909 | 10,909 | |
| Total unapplied return |
2,889 | 2,156 | |
| 13,798 | 13,065 | ||
| Unrestricted funds |
|||
| General reserves | 9 | 991 | (1,142) |
| Total charitable funds | 14789 | 11923 |
| STATEMENT OF CASH FLOWS | STATEMENT OF CASH FLOWS | STATEMENT OF CASH FLOWS | YEAR ENDED 31 MARCH 2021 | YEAR ENDED 31 MARCH 2021 | |||
|---|---|---|---|---|---|---|---|
| Note | 2021 | 2020 | |||||
| 6'000 | 6'000 | ||||||
| Operating Activities |
|||||||
| Net cash provided by/(used in) Operating |
|||||||
| Activities | A | 1,102 | 2,262 | ||||
| Cash flows from investing | activities | ||||||
| Dividends and interest from |
investments | 161 | 1,799 | ||||
| Proceeds from the sale of investments | 3,556 | 14,409 | |||||
| Purchase of investments | (279) | (14,465) | |||||
| Net cash provided by/(used in) Investing |
|||||||
| Activities | 3,438 | 1,743 | |||||
| Cash flows from financing | activities | ||||||
| Repayment of borrowings |
1,033 | 197 | |||||
| Change in cash and cash |
equivalents | in the | |||||
| reporting period |
1,303 | (/1b) | |||||
| Cash and cash equivalents | at the beginning | ofthe | |||||
| reporting period |
436 | 1,152 | |||||
| Cash and cash equivalents | at the end | ofthe | |||||
| reporting period |
13 | 1 739 | 436 | ||||
| Notes on the cash flow statement | |||||||
| Reconciliation ofnet income/(expenditure) |
to | ||||||
| A | net | ||||||
| cash flow from operating | activities | ||||||
| Net movement in Funds as |
per the Statement | of | |||||
| Financial Activities |
2,866 | (14,717) | |||||
| Adjustments for: |
|||||||
| Depreciation charges |
0 | 502 | |||||
| Impairment of investment property |
(1,229) | 13,614 | |||||
| Dividends, interest and rents from investments |
(161) | (1,799) | |||||
| Other movements in investments |
(2,782) | 1,113 | |||||
| (Increase)/decrease in debtors |
0 | 811 | |||||
| Increase/(decrease) in creditors |
204 | (1,786) | |||||
| Net cash provided by/(used in) Operating |
|||||||
| Activities | 1,102 | 2,262 |
| YEAR ENDED 31 | YEAR ENDED 31 | MARCH | 2021 | ||||
|---|---|---|---|---|---|---|---|
| 2. | INVESTMENT | INCOME | Unrestricted | Endowment | Total | Total | |
| funds | funds | Funds | Funds | ||||
| 2021 | 2021 | 2021 | 2020 | ||||
| L'000 | L"000 | f'000 | E'000 | ||||
| Interest on bank deposits | 3 | 0 | 3 | 3 | |||
| Income from investment | porffolios | 0 | 240 | 240 | 564 | ||
| Rental income | - Royal Masonic School | (90) | 0 | (90) | 1,198 | ||
| Rental income | - other | 8 | 0 | 8 | 10 | ||
| Income - other | 0 | 0 | 0 | 24 | |||
| 79 | 240 | 161 | 1 799 | ||||
| 3. | CHARITABLE | ACTIVITIES | Unrestricted | Endowment | Total | Total | |
| funds | funds | Funds | Funds | ||||
| 2021 | 2021 | 2021 | 2020 | ||||
| f."000 | L"000 | L'000 | E'000 | ||||
| Masonic | |||||||
| Foundation scholarships |
&bursaries | 10 | 10 | 17 | |||
| 10 | 10 | 17 | |||||
| Non-Masonic | |||||||
| Property expenses | 1,335 | 0 | 1,335 | 1,513 | |||
| Support Costs | 56 | 0 | 56 | 70 | |||
| 1,391 | 0 | 1 391 | 1,583 | ||||
| 4. | SUPPORT COSTS | Unrestricted | Endowment | Total | Total | ||
| funds | funds | Funds | Funds | ||||
| 2021 | 2021 | 2021 | 2020 | ||||
| f'000 | E'000 | F.'000 | E'000 | ||||
| Administrative | costs | 0 | 0 | 0 | |||
| Interest and bank charges | 38 | 38 | 55 | ||||
| Governance costs |
18 | 18 | 15 | ||||
| 56 | 0 | 56 | 70 |
| YE | AR ENDED 31 MARCH 2021 | AR ENDED 31 MARCH 2021 | AR ENDED 31 MARCH 2021 | ||||
|---|---|---|---|---|---|---|---|
| 6. | SOCIAL INVESTMENT PROPERTY | March 2021 | March 2020 | ||||
| f'000 | L'000 | ||||||
| Balance at 1 April 2020 | 909 | 0 | |||||
| Reclassification from tangible |
fixed assets | 0 | 14,523 | ||||
| Provision for backlog repairs | 1,229 | (13,614) | |||||
| Balance at 31 March 2021 | 2 138 | 909 | |||||
| See also note 1 (k) on the | accounting | policy | |||||
| 7. | INVESTMENTS | March 2021 | March 2020 | ||||
| f."000 | E'000 | ||||||
| Fixed Asset Investments: | |||||||
| - Managed Funds |
|||||||
| MCF CAIF | 11,659 | 11,586 | |||||
| - Other managed funds |
0 | 568 | |||||
| 11659 | 12154 | ||||||
| MOVEMENTS IN INVESTMENTS |
|||||||
| Listed | |||||||
| Balance at 1 April 2020 | 12,154 | 13,330 | |||||
| Additions | 279 | 14,465 | |||||
| Disposals | (3,556) | (14,409) | |||||
| Investment income reinvested |
240 | 142 | |||||
| Management fees charged |
to | the fund | (56) | (11) | |||
| Gains/(losses) | 2,598 | (1,244) | |||||
| Changes in cash balances |
held | 0 | (119) | ||||
| Balance at 31 March 2021 | 11,659 | 12,154 | |||||
| RECONCILIATION TO SOFA |
|||||||
| Gains/(losses) on listed investments |
2,598 | (1,244) | |||||
| Provision for backlog repairs |
on social | investment | property | 1,229 | (13,614) | ||
| 3,827 | 14,858 |
| YE | AR ENDED 31 MARCH 2021 | ||
|---|---|---|---|
| 8. | CREDITORS | March 2021 | March 2020 |
| 6'000 | K'000 | ||
| Falling due within one year | |||
| Bank loans and overdrafts Trade creditors Amounts owed to group undertakings Other creditors Accruals |
0 52 9 674 12 |
197 34 0 500 9 |
|
| 747 | 740 | ||
| Falling due after mors than ono year | |||
| Bank loans |
| YE | AR ENDED 3 | AR ENDED 3 | 1 MARCH 20 | 1 MARCH 20 | 21 | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| 9. | MOVEMENT | IN FUNDS | Balance at | Income | Expenditure | Gains/ | Transfers | Balance at | ||
| 1 April | (losses) | 31 March | ||||||||
| 2020 | 2021 | |||||||||
| E'000 | E'000 | E'000 | E'000 | E'000 | f'000 | |||||
| Endowment | funds | |||||||||
| Permanent | endowment | 10,909 | 0 | 0 | 0 | 0 | 10,909 | |||
| Total unapplied | return | 2,156 | 518 | (56) | 3,827 | (3,556) | 2,889 | |||
| 13065 | 518 | 56 | 3827 | 3.556 | 13,798 | |||||
| Unrestricted | funds | |||||||||
| General reserves | (1,142) | (22) | (1,401) | 0 | 3,556 | 991 | ||||
| 1 142 | 22 | 1,401 | 0 | 3556 | 991 | |||||
| Total funds | 11,923 | 496 | 1,457 | 3827 | 0 | 14,789 | ||||
| PRIOR YEAR | Balance at | Income | Expenditure | Gains/ | Transfers | Balance at | ||||
| 31 March | (losses) | 31 March | ||||||||
| 2019 | 2020 | |||||||||
| E'000 | E'000 | E'000 | E'000 | f'000 | f'000 | |||||
| Endowment | funds | |||||||||
| Permanent | endowment | 14,271 | 0 | 0 | (13,614) | 10,252 | 10,909 | |||
| Total unapplied | return | 0 | 564 | (58) | (1,244) | 2,894 | 2,156 | |||
| 14,271 | 564 | 58 | 14,858 | 13,146 | 13,065 | |||||
| Unrestricted | funds | |||||||||
| General reserves | 12,369 | 1,235 | (1,600) | 0 | (13,146) | (1,142) | ||||
| 12,369 | 1 235 | 1600 | 0 | 13146 | 1,142 | |||||
| Total funds | 26640 | 1,799 | 1 658 | 14,858 | 0 | 11,923 |
| R ENDED 31 MARCH 2021 | R ENDED 31 MARCH 2021 | |||||
|---|---|---|---|---|---|---|
| ASSETS AND LIABILITIES | Investment | Investments | Current | Liabilities & | Fund | |
| Properties | Assets | Provisions | Total | |||
| f.'000 | E'000 | E'000 | E'000 | F'000 | ||
| Endowment | funds | |||||
| Permanent | endowment | 909 | 10,000 | 0 | 0 | 10,909 |
| Total unapplied return |
1,229 | 1,659 | 0 | (1) | 2,889 | |
| 2,138 | 11659 | 0 | 1 | 13798 | ||
| Unrestricted funds |
||||||
| General reserves | 0 | 0 | 1,739 | (746) | 991 | |
| 0 | 0 | 1 739 | 746 | 991 | ||
| Total funds | 2,138 | 11659 | 1,739 | 747 | 14,789 | |
| PRIOR YEAR | Investment | Investments | Current | Liabilities & |
Fund | |
| Properties | Assets | Provisions | Total | |||
| E'000 | E'000 | F'000 | E'000 | E'000 | ||
| Endowment | funds | |||||
| Permanent | endowment | 909 | 10,000 | 10,909 | ||
| n | 2 154 | 2 156 | ||||
| 909 | 12154 | 2 | 13065 | |||
| Unrestricted | funds | |||||
| Genera I reserves |
0 | 0 | 436 | (1,578) | (1,142) | |
| 0 | 0 | 436 | 1 578 | 1 142 | ||
| Total funds | 909 | 12,154 | 436 | 1,576 | 11,923 |
| Note | Unrestricted | Endowment | Total | Total | |||
|---|---|---|---|---|---|---|---|
| funds | funds | Funds | Funds | ||||
| 2020 | 2020 | 2020 | 2019 | ||||
| E'000 | E'000 | E'000 | K'000 | ||||
| INCOME | |||||||
| Investment income |
2 | 1,235 | 564 | 1,799 | 2,007 | ||
| Total income | 1,235 | 564 | 1,799 | 2,007 | |||
| EXPENDITURE | |||||||
| Investment management |
costs | 0 | (58) | (58) | (76) | ||
| 0 | 58 | 58 | 76 | ||||
| Charitable activities |
|||||||
| Masonic grants | 3 | (17) | 0 | (17) | (19) | ||
| Non-Masonic grants |
3 | (1,583) | 0 | (1,583) | (1,731) | ||
| 1600 | 0 | 1,600 | 1,750 | ||||
| Total expenditure | 1 600 | 58 | 1,658 | 1,826 | |||
| Net gains/(losses) | on investments | 0 | 14,858 | 14,858 | 32 | ||
| Net income/(expenditure) | (365) | (14,352) | (14,717) | 213 | |||
| Transfers between |
funds | 9 | (13,146) | 13,146 | 0 | 0 | |
| NET MOVEMENT | IN FUNDS | 13,511 | 1,206 | 14,717 | 213 | ||
| Total funds brought | forward | 12,369 | 14,271 | 26,640 | 26,427 | ||
| Total funds carried forward | 1,142 | 13,065 | 11,923 | 26,640 |
| ANALYSIS OF C | HANGES IN CA |
SH AND CAS | H EQUIVALE | NTS LESSD | EBT | |
|---|---|---|---|---|---|---|
| At 1 April | Cash Flow | Non-Cash | At 31 March | |||
| 2020 | Changes | 2021 | ||||
| E'000 | F000 | L"000 | 8'000 | |||
| Cash and cash equivalents | ||||||
| Cash at bank and | in hand | 436 | 1,303 | 0 | 1,739 | |
| 436 | 1,303 | 0 | 1,739 | |||
| Borrowings | ||||||
| Bank loans due within one year | (197) | 197 | ||||
| Bank loans due after one year | 836 | 836 | ||||
| 1 033 | 1 033 | |||||
| Tntsl each and roach oquivalentc | tocc rlebt | (597t | 2 336 | n | 1 73g |