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|Contents||Page|
|---|---|---|
|Trustees'|Annual
Report||
|Statement|ofTrustees Responsibilities|12|
|Auditor's|Report|13|
|Statement|of Financial Activities|16|
|Balance Sheet|||
|Statement|ofCash Flows|18|
|Notes to the Financial Statements||19|
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|training
ofthe MCF's|training
ofthe MCF's|trustees are given
in the annual
report and accounts of|that|company|.|
|---|---|---|---|---|---|
|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|ofthe MCF address the specific needs ofthe Charity as part oftheir roles and||||responsibilities|
|for the MCF. The trustee board and the main committees
meet as follows:||||||
|Board/Committee||Purpose|||Meetings per|
||||||ear|
|Trustee Board||Main decision-making
body with ultimate
responsibility|for|the||
|||Chari||||
|Audit and Risk||Identification
and miti
ation of risk, oversi
ht of external 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 of strategies
to optimise the returns
from the Charit 's
ro e
orffolio||||
|Strategy||Development
and implementation
of strategies
to support the
Charit
's ob ectives.||||
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||Asset|Asset|Class|Strategic||Benchmark||Actual 31"|
|---|---|---|---|---|---|---|---|---|
|||||Allocation||||March 2023|
|Cash||||0.00%|SONIA|||290%|
|Fixed|Income|||750%|FTSE UK World|Gov. Bond Index GBP||8 80oi|
|International|||E ui|54 5p|MSCI World ex|UK NR GBP||59.20%|
|U.K.|E ui|||180P|MSCI UK E uit|NR GBP||18.10%|
|Emer|in|Market E ui||12.50%|MSCI Emeroing|Markets E uit|NR GBP|3.20%|
|Alternative||Investments||3.75%|HFRX Global Hed e Fund GBP|||590%|
|Pro ed||||3.75%|IA UK Direct Property TR|||1 agoyo|
|||||1PPPP%||||1PP P%|
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|||||MCF|MCF|CAIF|RLAM|RLAM|RLAM|RLAM|RLAM|RLAM|CCLA|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
||||||||Money||Short|Term|Short|Term||
||||||||Market||Fixed||Fixed|||
||||||||||Income||Income|||
||||||||||||Enhanced|||
|Fund|at31"March 2023|||E5.66||M|E Nil||E Nil||E Nil||E Nil|
|Investment||approach||Steady|||Capital||Capital||Capital||Income &|
|||||Growth
Multi-|||Protection||Protection||Protection||long-term|
|||||Asset|||||||||Capital|
||||||||||||||Growth|
|Benchmark||||Composite|||SONIA||SONIA||SONIA||MSCI/AREF|
||||||||||||||UK other|
||||||||||||||balanced|
||||||||||||||ro ert|
|Peer Group||||ARC|Charity||None||None||None||ARC|
|||||GBP|Steady||||||||Charity|
|||||Growth|||||||||GBP|
||||||||||||||Steady|
||||||||||||||Growth|
|Return|for the||ear|||1.00 %|2.27%|||2 13%||090%|11 4Q 'I|
|Benchmark||return for year||||1 00)%|2|23%||2 23%||2.23%|10.60 %|
|Peer|rou|return for ear||||410%||N/A||N/A||N/A|4.10%|
|3year|return||||39.60%||0|79%||1 Q4%||083%|8.80%|
|3 ear|benchmark||||37.70%||0.80%|||080%||0.80%|(6.30)%|
|3 ear|eer|rou|||26.40%|||N/A||N/A||N/A|26.40%|
##
||Risk|Risk|Risk||||Conse
uence|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
liers||||Strate||
|Significant||long-term||||loss|Impacts financial
sustainability|||and||Appointment
ofAsset Risk||
|in the value||ofthe|||||reputatlonal|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 covering access, protection,||
|||||||||||||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
olicies in
lace||
|Fraud|||||||Financial loss, reputational||damage,|||Financial procedures,
segregation||
||||||||adverse
impact upon staff|||||ofduties, authority
limits,
IT||
|||||||||||||security, increased awareness||
|||||||||||||amon
st staff||
|Unavailability|||of|office|||Operations|compromised||||UGLE Business Continuity
Plan||
|accommodation||||||||||||||
|Loss ofpaper|||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 ofcompliance|||||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|
||||||||re utationaldama
e|||||rocedures
and controls||
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||||Note|Unrestricted|Restricted|Endowment|Total|Total|
|---|---|---|---|---|---|---|---|---|
|||||funds|funds|funds|Funds|Funds|
|||||2023|2023|2023|2023|2022|
|||||OOOO|E'000|E'000|E'000|E'000|
|INCOME|||||||||
|Donations||||0|1,066|0|1,066|0|
|Investment
income||||859|0|141|1,000|2,032|
|Total income||||859|1,066|141|2,066|2,032|
|EXPENDITURE|||||||||
|Investment
management||costs||||(29)|(29)|(48)|
|||||||29|29|48|
|Charitable
activities|||||||||
|Masonic grants|||3|4|0|0|4|0|
|Non-Masonic
grants|||3|(2,766)|(110)|0|(2,876)|(3,222)|
||||||110|0|2,872|3,222|
|Total expenditure||||2 762|110|29|2,901|3,270|
|Net gains/(losses)|on investments||7|0|0|342|342|1.823|
|Net income/(expenditure)||||(1,903)|956|454|(493)|585|
|Transfers
between|funds||10|(300)|0|300|0|0|
|NET MOVEMENT|IN FUNDS|||2,203|956|754|493|585|
|Total funds brought|forward|||4,845|0|10,529|15,374|14,789|
|Total funds carried forward||||2 642|956|11,283|14,881|15,374|
|RMIG ENDOWMENT TRUST||||
|---|---|---|---|
|BALANCE SHEET as at 31 March 2023|Note|March 2023|March 2022|
|||E'000|8'000|
|FIXEDASSETS||||
|Investment
properties
Investments||3,620
5,661|2,951
7,576|
|||9,281|10,527|
|CURRENT ASSETS||||
|Debtors||1,432|1,283|
|Cash at bank and
in hand||4,895|4,484|
|||6,327|5767|
|CURRENT LIABILITIES||||
|Creditors
falling due within one year||(439)|(443)|
|NET CURRENT ASSETS||5,888|5,324|
|TOTAL ASSETS LESSCURRENT LIABILITIES||15,169|15,851|
|Creditors falling due after one year||(288)|(477)|
|Total net assets||14,881|15,374|
|CHARITABLE FUNDS||||
|Endowment
funds||||
|Permanent
endowment|10|10,909|10,909|
|Total unapplied
return|10|374|(380)|
|||11,283|10,529|
|Restricted funds||||
|Cadogan Trust|10|956||
|Unrestricted
funds||||
|General reserves|10|2,642|4,845|
|Total charitable
funds||14,881|15,374|
|Sir Paul Williams,|OBE, DL|Clive Emerson|
|---|---|---|
|Chairman||Treasurer|
##
|||||||Note|2023|2022|
|---|---|---|---|---|---|---|---|---|
||||||||t."000|OOOO|
||Operating
Activities||||||||
||Net cash provided
by/(used
in) Operating||||||||
||Activities||||||2,100|5,157|
||Cash flows from investing|activities|||||||
||Dividends
and interest from|investments|||||1,000|2,032|
||Proceeds from the sale of investments||||||1,700|5,200|
||Purchase ofinvestments||||||0|0|
||Net cash provided
by/(used
in) Investing|||Activities|||2,700|7,232|
||Cash flows from financing|activities|||||||
||Bank loans (repaid)/taken
out||||||189|670|
||Change
in cash and cash|equivalents|in|the|||||
||reporting
period||||||411|2,745|
||Cash and cash equivalents|at the beginning||ofthe|||||
||reporting
period||||||4,484|1,739|
||Cash and cash equivalents|at the end|of|the|||||
||reporting
period|||||14|4895|4,484|
||Notes on the cash flow statement||||||||
|A|Reconciliation
ofnet income/(expenditure)||||to net||||
||cash flow from operating|activities|||||||
||Net movement
in Funds as|per the Statement|||of||||
||Financial
Activities||||||(493)|585|
||Adjustments
for:||||||||
||Impairment
ofinvestment
property||||||(669)|(813)|
||Dividends,
interest and rents from investments||||||(1,000)|(2,032)|
||Other movements
in investments||||||215|(1,117)|
||(Increase) in debtors||||||(149)|(1,283)|
||(Decrease)
in creditors||||||(4)|(497)|
||Net cash provided
by/(used
in) Operating
Activities||||||2,100|5,157|
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|YE|AR ENDED 31 MARCH|AR ENDED 31 MARCH|2023||||||
|---|---|---|---|---|---|---|---|---|
|2.|INVESTMENT INCOME|||Unrestricted|Restricted|Endowment|Total|Total|
|||||funds|funds|funds|Funds|Funds|
|||||2023|2023|2023|2023|2022|
|||||f'000|f'000|f'000|f'000|f'000|
||Interest on|bank deposits||45||0|45|4|
||Income from investment||||||||
||porffolios|||0||141|141|156|
||Rental income - Royal Masonic School|||799||0|799|1,872|
||Rental income - other|||6||0|6|0|
||Income - other|||9||0|9|0|
|||||859|0|141|1,000|2,032|
|3.|CHARITABLE ACTIVITIES|||Unrestricted|Restricted|Endowment|Total|Total|
|||||funds|funds|funds|Funds|Funds|
|||||2023|2023|2023|2023|2022|
|||||f'000|f'000|f'000|f'000|f'000|
||Masonic||||||||
||Foundation|scholarships|&bursaries|(4)||0|(4)|0|
|||||||0|4|0|
||Non-Masonic||||||||
||Foundation|scholarships|8 bursaries|0|110|0|110|0|
||Property expenses|||2,655|0|0|2,655|3,172|
||Support Costs|||111|0|0|111|50|
|||||2,766|110|0|2,876|3,222|
|4.|SUPPORT|COSTS||Unrestricted|Restricted|Endowment|Total|Total|
|||||funds|funds|funds|Funds|Funds|
|||||2023|2023|2023|2023|2022|
|||||f'000|f'000|f'000|F'000|f'000|
||Interest and|bank charges||19|||19|23|
||Governance|costs||92|||92|27|
||||||0|0|111|50|
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|YE|AR ENDED 31 MARCH 2023||||
|---|---|---|---|---|
|6.|SOCIAL INVESTMENT PROPERTY||March 2023|March 2022|
||||E'000|E'000|
||Balance at 1 April 2022||2,951|2,138|
||Additional
provision
for backlog repairs||(1,986)|(2,401)|
||Utilisation
ofprovision
for backlog repairs||2,655|3,214|
||Balance at 31 March 2023||3,620|2,951|
|7.|INVESTMENTS||March 2023|March 2022|
||||L'000|f."000|
||Fixed Asset Investments:||||
||- Managed
Funds||||
||MCF CAIF||5,661|7,576|
||||5,661|7,576|
||MOVEMENTS
IN INVESTMENTS||||
||Listed||||
||Balance at 1 April 2022||7,576|11,659|
||Additions||0|0|
||Disposals||(1,700)|(5,200)|
||Investment
income reinvested||141|156|
||Management
fees charged to the fund||(29)|(48)|
||Gains/(losses)||(327)|1,009|
||Balance at 31 March 2023||5,661|7,576|
||RECONCILIATION
TO SOFA||||
||Gains on listed investments||(327)|1,009|
||Provision for backlog repairs on social investment|property|669|814|
||||342|1 823|
##
|NOTES TO THE FINANCIAL STATEMENTS|NOTES TO THE FINANCIAL STATEMENTS|NOTES TO THE FINANCIAL STATEMENTS|||
|---|---|---|---|---|
|YEAR ENDED 31 MARCH 2023|||||
|8.|DEBTORS||March 2023|March 2022|
||||F'000|E'000|
||Prepayments|and accrued income|1,432|1,265|
||Amounts
owed by group undertakings||0|18|
||||1,432|1,283|
|9.|CREDITORS||March 2023|March 2022|
||||2'000|F.'000|
||Falling due within one year||||
||Bank loans and overdrafts||193|193|
||Trade creditors||234|233|
||Accruals||12|17|
||||439|443|
|9.|Falling due after more than one year||March 2023|March 2022|
||||f'000|E'000|
||Bank loans||288|477|
||||288|477|
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|EA|R ENDED 31|MARCH 202|3||||||
|---|---|---|---|---|---|---|---|---|
|10.|MOVEMENT|IN FUNDS|Balance at|Income|Expenditure|Gains/|Transfers|Balance at|
||||1 April|||(losses)||31 March|
||||2022|||||2023|
||||f'000|f'000|f'000|f'000|f.'000|f'000|
||Endowment|funds|||||||
||Permanent
endowment||10,909|0|0|0|0|10,909|
||Total unapplied
return||(380)|141|(29)|342|300|374|
||||10,529|141|29|342|300|11,283|
||Restricted funds||||||||
||Cadogan
Bursary||0|1,066|(110)|0||956|
||Unrestricted|funds|||||||
||General reserves||4,845|859|(2,762)|0|(300)|2,642|
||||4,845|859|2 762|0|300|2,642|
||Total funds||15,374|2,066|2,901|342|0|14,881|
||PRIOR YEAR||Balance at|Income|Expenditure|Gains/|Transfers|Balance at|
||||1 April|||(losses)||31 March|
||||2021|||||2022|
||||f'000|f'000|f'000|f'000|f'000|f'000|
||Endowment|funds|||||||
||Permanent
endowment||10,909|0|0|0|0|10,909|
||Total unapplied
return||2,889|156|(48)|1,823|(5,200)|(380)|
||||13,798|156|48|1,823|5,200|10,529|
||Unrestricted|funds|||||||
||General reserves||991|1,876|(3,222)|0|5,200|4,845|
||||991|1,876|3,222|0|5,200|4,845|
||Total funds||14,789|2,032|3,270|1,823|0|15,374|
##
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|YEA|R ENDED 31 MARCH 2023||||||
|---|---|---|---|---|---|---|
|11.|ASSETSAND LIABILITIES|Investment|Investments|Current|Liabilities &|Fund|
|||Properties||Assets|Provisions|Total|
|||f'000|f'000|E'000|f'000|E'000|
||Endowment
funds||||||
||Permanent
endowment|909|10,000|0|0|10,909|
||Total unapplied
return|2,711|(4,339)|2,002|0|374|
|||3,620|5,661|2,002|0|11,283|
||Restricted funds||||||
||General reserves: Cadogan||0|956|0|956|
||Unrestricted
funds||||||
||General reserves|0|0|3,369|(727)|2,642|
|||0|0|3,369|727|2.642|
||Total funds|3,620|5,661|6,327|727\|14,881|
||PRIOR YEAR|Investment|Investments|Current|Liabilities 8|Fund|
|||Properties||Assets|Provisions|Total|
|||E'000|f'000|E'000|f'000|f'000|
||Endowment
funds||||||
||Permanent
endowment|909|10,000||0|10,909|
||Total unapplied
return|2,042|(2,424)||0|(380)|
|||2,951|7,576||0|10529|
||Unrestricted
funds||||||
||General reserves|0|0|5,765|(920)|4,845|
|||0|0|5765|920|4,845|
||Total funds|2,951|7,576|5,767|920)|15,374|
##
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||||Note|Unrestricted|Endowment|Total|
|---|---|---|---|---|---|---|
|||||funds|funds|Funds|
|||||2022|2022|2022|
|||||F000|2000|6'000|
|INCOME|||||||
|Donations||||0|0|0|
|Investment
income||||1,876|156|2,032|
|Total income||||1,876|156|2,032|
|EXPENDITURE|||||||
|Investment
management||costs|||(48)|(48)|
||||||48|48|
|Charitable
activities|||||||
|Masonic grants||||0|0|0|
|Non-Masonic
grants||||(3,222)|0|(3,222)|
|||||3,222|0|3,222|
|Total expenditure||||3,222|48|3,270|
|Net gains/(losses)|on investments|||0|1,823|1,823|
|Net income/(expenditure)||||(1,346)|1,931|585|
|Transfers
between|funds|||5,200|(5,200)|0|
|NET MOVEMENT|IN FUNDS|||3,854|3,269|585|
|Total funds brought|forward|||991|13,798|14,789|
|Total funds carried forward||||4,845|10,529|15,374|
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||||At 1 April|Cash Flow|Non-Cash|At 31 March|
|---|---|---|---|---|---|---|
||||2022||Changes|2023|
||||E'000|F'000|L'000|8000|
|Cash and cash equivalents|||||||
|Cash at bank and|in hand||4,484|411|0|4,895|
||||4,484|4«|0|4,895|
|Borrowings|||||||
|Bank loans due within one year|||(193)|189|(189)|(193)|
|Bank loans due after one year|||477|0|189|288|
||||670|189|0|481|
|Total cash and cash equivalents||less debt|3,814|600|0|4414|
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