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|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|
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|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.||||||||
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|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%|
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||||||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|
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|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||
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||||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|
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||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|
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|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|
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|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|
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|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|||
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|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|
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|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|
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||||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|
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|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|
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