RMIG ENDOWMENT TRUST ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Charlty Number: 290883
RMIG ENDOWMENT TRUST Contents Page Trustees, Annual Report statement of Trustees Responslbilities 12 Auditorfs Report 13 statement of Financlal Activities 16 Balance Sheet 17 Statement of Cash Flows 18 Note8 to the Financial Statements 19 Page 2
RMIG ENDOWMENT TRUST TRUSTEE'S ANNUAL REPORT The trustee is pleas8d to submit its report for the year end8d 3181 March 2024. Refor•nc8 and Administrative Infonnation Namo and Reglstered Office The name of th8 charity is the RMIG Endowment Trust (the "Charit) and its principal offic8 is located at 60 Greal Queen Street, London, WC2B 5AZ. Trustses 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 (Rosigned 31 ¥1 July 2023) Sinead Brophy (Resigned 31S1 July 2023) Simon Duckworth, OBE, DL (R8signed 3151 July 2023) Clive Emarson (Appointed Treasurer 151 August 2023) Dr Simon Fellemian Edward Goodchild (Appointed 111 August 2023) Alan Graham, MBE Antony Harvey {Resigned 3111 July 2023) Christopher Head Michael Heenan (Treasurer) (Resigned 3101 July 2023) James Long, TD (President) (Appointed Chairman 181 January 2024) Charlott8 Miller (Appointed co-oplee 111 August 2023) St8phen Robinson Marie Shenlon (Appointed 11t August 2023) David Southem Bruce Walker Andrew Wauchope (Resigned 318t July 20231 Sir Paul Williams, OBE. KStJ. DL (Deputy President and Chaimian to 31bt December 2023) Howard Wilson Page 3
RMIG ENDOWMENT TRUST TRUSTEE'S ANNUAL REPORT Executiv• The Executlve durlng the year to 318t March 2023 were: Les Hutchinson, Chief Executive Charfes Angus, Group Financ8 Director Brenda Nurse. Company Secretary Auditor Knox Cropper LLP, Chartered Accountants, 65 Leadenhall Str88t, London. EC3A 2AD Bankers Barclays Bank Plc. Lev8128, 1 Churchill Place, Canary Wharf, London, E14 5HP Clydesdale Bank Plc, Unit 8. 3 The Chase, John Tate Road, Hertford. Herts SG13 7NN Inv05tm•nt Advisorn Asset Risk Consultants Limited, 7 New Street, st. Peler Port. Guemsey. GY12PF Investment Managers CCLA, Senator House, 85 Queen Victoria Street, London, EC4V 4ET Sarasin & Partners LLP, Juxon House, 100 St. Paul's Churchyard, London, EC4M 88U Royal London Asset Managefflent Ltd., 55 Gracechurch Street, London, EC3V OUF Thesis Unit TNst Managem8nt Ltd, Exchang8 Building. St John's Str8et, Chichester. West Sussex P019 1UP Waverton Investment Management Lid.. 16 Babmaes Street. St. James, London. SW1Y 6AH Sollcltorn stone King LLP, Boundary House, 91 Charterhouse Street. London. EC1 M 6HR Wedlake Bell LLP, 71 Qu88n Vicioria Street, London, EC4V 4AY Page 4
RMIG ENDOWMENT TRUST TRUSTEE'S ANNUAL REPORT Structure, Governance and Management Organisation The Charity is govemed under the terms of a trust deed dated 29 November 1984 which constilutes an unincorporated charity. The trust deed has been varied a number of times to accommodate changes in trustees, with a variation dated 5th April 2019 appointing the MCF and its chaimian as Trustees of the Charity. Following the granting of trust corporalion status to the MCF, the thairman resigned as a trustee of the Charlty on 12th December 2019. Govemanca and Management Th6 MCF is the sole trustee of the Charity. 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. All governance and m8n8gement capabilities are prowded by the MCF and details of th8 relevant committees and processes are provided in the annual report and accounts of that company. Twstees and committ8es of Ihe MCF address the specific needs of the Charily as part of their ro188 and responsibilities for the MCF. The trustee board and the main committees meet as follows.. BoardlCommltto• Purpo80 Moetlng8 por oar Trustee 8oard Main de¢ision-m8king body with ultimate responsibility for the Charit Identificatlon and miti ation of risk. oversi ht of external audit Ensuring adequate procedures are in place to manage all as acts of financial lannin controllin and re rtin Maintaining investment strategies to meet the requirements of the Charit ointment and monitorin of fund mana ers Dev81opment and execution of strategies lo optimise the r8lums from the Charil ro ert ortfolio Development and implementation of strategies to support the Charil 's ob ectives. Audit and Risk Finance Investments Property Strategy The Charily does not employ any staff. with services belng provided by staff employed by the MCF. Objectives and Actlvlties The objects of the Charity The primary purpose of the Charity wa5 to apply its resourc8s for any charitable purpose connected with th8 Royal Masonic School for Girls (the "School.) or the education of its pupils who are daughters or adopted daughters of English Freemasons wnsidered to be in need. The resources consist of funds donated by Freemasons to the Royal Masonic Institution for Girls and transferred by that charity to the trustees on 8Stablishment of the Charity on 29th November 1984. together wilh property and real estate at Rickmansworth Park which houses the School. During the course of the previous year, the Trustee approved an am8ndment lo the trust deed to widen support to 811 children, young women and young men who will be, are or have been educated at the School, and for any Gharitable purposes connected with the School and the education of its pupils. This variation was approved by the Charity Commission through a Scheme dated 24 January 2023. Page 5
RMIG ENDOWMENT TRUST TRUSTEE'S ANNUAL REPORT The main a¢tivities Since its establishment, a policy of the Charity has been to ensure the proper maintenance of the property and real eslale to optimise the running of the SGhool. The Charity provides scholarships and burs8ries on a "need or means tested. basis to daughters or adopted daughters of Fr8emasons in accordance with the trust deed. This pollcy has now been extended to cover all children at the school. young VMen and m8n, wlth or wlthout a masonic connectlon. Wh8n s8tting the objectives and planning the work of th8 Charlty for the year. the Trustee has given careful consideration to the Charity Commlssion's general guidance on public benefit. In meeliNJ ils objects. the trustee has been mindful of the public benefits which the Charity and the School can jointly provid8 10 local. provinoal and natronal organisations by the use of the grounds, sports fa¢ililies and the various halls and buildings. During the previous year, the assets of the Cadogan Trust were transferred to the Endowm8nt Trust, to be used to continue providing bursaries to six current students at the School. The funds r8C8ived, amounting to £1.07 M. were placed into a separate restricted reserve. Achlevements and Performance Durlng the period, the Cherity expended £5.10 M on supporting the School12023.' £2.66 Ml. Major areas of repair and refurbishment included: the garagelworkshops building, great hall and D4 loilet block, together with stages 2 and 3 of the replacement of the dlstricl heating system and further removal of asbestos from th8 servSce tunnels. £0.26 M was paid out in bursaries from the Cadogan Trust Bursary Fund to support Six pupils at the School {2023: £0.11 M). Financial Revlew Rovlew of the Year Unrestrict8d Fund Income reIved of £1.05 M consisted mainly of £0.80 M rental from the School under the temis of the interim18ase and £0.23 M interest on bank deposits. Total expenditu for charitabl6 purposes amounted to £5.32 M12023: £2.76 M). A transfer of£2.7 M was received from the endowment fund. The deficit for the y8ar of £1.57 M (2023: £2.20 M) was transferred to reserves. Endowment Fund Divldend income of £0.08 M (2023: £0.14 M) was generated from the investment portfolio with costs of £0.02 M (2023.. £0.03 M). Gains from the Charity's inv8Stment in the MCF CAIF amounted to £0.47 M (2023 losses: £0.33 M). £5.09 M was written back to the value of the social investment property (the buildings leased to the School) Page 6
RMIG ENDOWMENT TRUST TRUSTEE'S ANNUAL REPORT following the repairs undertaken during the y8ar. but a further provision of £3.50 M was made in recognition of the increased scope and cosl required to complete the programme of backlog works. Reserves Policy As atthe 31 March 2024 the total level of reserves was £12.49 M, ofwhich £10.71 M related to endowment funds. £0.70 M to the Cadogan Bursary and the remainder of£1.07 M related to th8 working capital wilhln the unrestricted general reserve. The Charity's policy is to apply Its resources for any charitable purpose connected with the SGhool or the education of Its pupils in accordance with the trust deed. The Charity has commissioned a report from a firm of professional surveyors to consider the condition of the School buildings in anticipation of a new tenant r8pairing lease, from which significant dilapidations have been identified for r8Ctification. The expected cost for this is estimated at £21.50 M and full provision has been made for this against Ihe value of the social inv8stm8nt properly in the accounts. In order lo provide increaseé availability of fund5, the Trust88 agreed lo adopt a Total Retum basis for utilising investment retums on 12th December 2019, replacing the previous policy of applying in-year income only for the purpose of supporting the School. Th8 surplus ov8r the original gndowment has been transf8rred lo a separate reseTr for the total unapplied retum. The social investment property has been valued through the discounting of expected future lease payments using a yield of 5.5% as the cost of capital, less the residual value of the provision for backlog repairs. This pmwsion is bèing rele8sed back to the endowment fund in lin8 Wlth the works being comp18ted and charged to the unrestricted general reserve. The provislon for backlog repairs is reviewed on an annual basis, ané adjusted as raquId in accordance with the evolving cost for the planned work8. Inv•stm•nt Pollcy and Perfomian The investment strategy was to provide sufficient income to support the Charity's primary objectives whilst maintaining its real value to ensure that purchasing power does not diminish in the long-lem. The Trustee recognised that thi5 required a medium to high risk assèt allocation, with up to 85% of the portfolio invested in equitie5. Risk was mitigated through a diverse portfolio of fixed interest securit18S, 8qUlties. unit trusts and open-ended Investmenl companies. Following the Truste8's d8cision to adopt 8 Total Retum basis, the requirement to maximise the incom8 component of Ihe investment retum was removed, and the Charity was able to adopt the MCF investment strategy and to transfer its funds to the MCF CAIF. The MCF global investment strategy seeks to protect the capital value of investments that a required to fund operations for a two-year time horizon (the "Cash Reserve") and to invest all remaining funds for long term growth. on a total retum basis, with an overall objective of making a return of CPI plus 3.5Oh net of all expenses. The Cash R8S8rve is provided by Royal London Asset Management and utilis8s three of their funds. whiGh provide a mix of inslruments, including cash instruments, Treasury Bills, covered {secured) bonds, corporate bonds, Supranationals and mortgage-backed securities. The perfomianc8 objectives of the three funds are: Short Temi Money Market Fund: Short Tenn Fixed Income Fund.. Short Temi Fixed Income Enhanced Plus Fund.. SONIA SONIA plus 0.500h gross of fees SONIA plus 1.00% gross of fees Page 7
RMIG ENDOWMENT TRUST TRUSTEE'S ANNUAL REPORT Inv•stm•nt Pollcy and Perfomiance (Continued) Th8 MCF sponsored the launch of the Masonic Charitable Foundation Inveslment Fund CAIF, which took place on 1$1 Octob8r 2018. This is a unil trust with a highly efficient lax wrapper in which Ihe MCF and all its subsidiary charities own their shares in the form of units. Units will be sold as required in order to top up the Cash Reserve on a quarterly basis. The inveslment stralegy Is directed for'steady Growth.. which is a medium-high risk stralegy. Risk is managed through diversification, wilh the funds split beeen four different fund managers operating on multi asset mandales but utilising differing investment managèment st85. Th6 overall fund manager is Thesis Unit Trust Management Limited and the custodian in Northem Trust. The strategic and actual asset allOtiOnS as at 31 March 2024 are shown in the following table.. Asut Class Stratagl Allocation 0.00 % 7.50% 54.50% 18.00% 12.50% 3.75% 3.75% 100.00% Bonchmark Actual 31• March 2024 2.44% 5.670 Cash Fixed Income International E U.K. E uit Eme Market E uit Altemalive Investments Pro ert SONIA FTSE UK World Gov. Bond Index GBP MSCI World ex UK NR GBP MSCI UK E uit NR GBP MSCI Eme Markets E uit NR GBP HFRX Global Hed e Fund GBP IA UK Direct Pro TR 2.850 6.350 1.15Yo 100.00% Perfonnance under the new arrangements is shown in the table below: MCF CAIF RLAM Money Market RLAM Short Terni Fixed Income RLAM Short Term Fixed Incom• Enhancod £Nil Capila Protection CCLA Property Fund Fund al 3101 March 2024 Investment approach £3.50M Steady Gr0h Multi- Asset £ Nil Capital Protection £NII Capital Protection £Nil Income & long-18mi C8Pltal Growih MSCIIAREF UK other balanced ro ert ARC Charity GBP Steady Growth 0.50% 1.10 9.70% 6.20% 2.20 11.90Vo Benchmark Composite SONIA SONIA SONIA P88r Group ARC Charity GBP Steady Growth None Non8 None Return for the ear Benchmark return for Peer rou retum for ear retum ear benchrnark eer rou 16.20% 14.700 9.70% 26.90% 25.40% 11.90% 5.31% 4.97% 4.30/0 5.69% 4.97% 4.300 2.600 2.42% 1.70% 6.65Yo 4.97¥0 4.30¥0 ear 2.42% 1.70Q 1.700/0 Page 8
RMIG ENDOWMENT TRUST TRUSTEE'S ANNUAL REPORT Investment Pollcy and Perfornianca (Contlnu•d) Slock markets had a very strong run in the final quarter of the financial year, resulting in an increase in the valuation of the MCF CAIF from its op6nlng value of £126.25 to close at £146.47 per unit. Page 9
RMIG ENDOWMENT TRUST TRUSTEE'S ANNUAL REPORT Principal Risks and Mitigation The principal risks identified and agreed actions to mitigate are shown in the following labl8: Rlsk Slgnwlcant unexpected financial loss from operations Con80 uence Reputational damage. loss of confidence with key stakeholders and impact upon continuing financial SU5tainabilil PooT service lo beneficlaries and repulalional damage. Wllhdrawal of ke services from SU liers mp8cts financial sustainablllly arKI repulalional damage wlh donors Mltl atlon Strong fillancial predUreS, particularly budgetary planning and control. Oversight from the Finance Committee. Inadequale1SquSdity lo meal financial commitments Slgnifunl long-lerm lo$s In the value of the investment portfolio Cash flow forecasting and liquidity planning within the Investment Strategy Appointment of Asset Risk Consullanls as expert investment advisors. providing mnnlhly pRrfnmianrTr. raporting and analysis. Ovefsight from investment and ro ert commillees. Strong procedures and controls for processing grants. Oversight from Mason ort and Charil Grants committee8 UGLE manage and monitor nelworks, servers and backup systems, and has deployed appropriate defance mechanlsms e.g. firewalls. antivirus etc. Third party hosted sy81em¥ lappllcallon8 have relevant controls and securlty regimes. Information systems are only a¢¢essed via the VPN neiwork arKllor mulll- factor aulhenticalion protocols. Grants made outsmle th Charity's ObJ8cls and eratin uidelines Cyberattack on IT systems Reputational darnage, loss of confidence with key stakeholders and lenlial Iruslee liabilit Operational disruplSon resulting In financial, reputational, legal and regulatory damage. MCF'S Informalion Security Group IISGI have various dlgital & IT procedures and pollciès in place. Cyber awareness and Iralnin ramm8 mandalo for all 51aff. Data protection policy, IT securlly and HR olicies In lace Financial procedures, 8wegalion of dulle8, authority limlts. IT security, increased awarenegs 8mon sl 51aff MCF Business Continuity Plan 08ta protection breach Repulatlonal damage and 81gnlficanl flnancial enalties Flnancial loss. repulalional damage, adverse impact upon staff Fraud Unavailabilily ol off accommodation Loss of paper records from firerflooding Operallon8 compromised Breach of legal obligations, adverse impact upon operations. potential financlal nalties Breach of legal obligations, potential flnancial penalties, breakdown of staff moral& and adverse impact on service rovisSon Operational breakdown, adverse impact upon staff morale, poor service to beneficiaries and potential re utatnal dama Reduced reliance on paper records wllh increased use of IT. Lack of compliance with employment legislation HR procedures and stsff handbook. Induction processes for new staff. Ongoing management training and Personal Develo rnent Review HR procedures.. organisalional and succession planning. Comprehensive documentation of procedures and controls Undue reliance on key persons Risks are actively monitored by thè Executive and the senior leadership team, and formally reviewed by the audit and rlsk committee at their quarterly meetings. Page 10
RMIG ENDOWMENT TRUST TRUSTEE'S ANNUAL REPORT Plans for Futurn Periods The MCF plans to continue to operate the Charity in a prudent manner that meets the needs of its beneficiaries over the long t8mi. It r8cognlses the requirement to work closely with the School to r8solve the backlog of r8pairs to Its infrastruclure that have built up over many years and will prioritise the execution of a 6-year plan to address these issu8s in a sustsinable manner. Following completion of the backlog works, th8 Charlty will consult ryth the School to detemiine the most effective use of surplus income for supporting its op8rations an(J pupils. Page11
RMIG ENDOWMENT TRUST STATEMENT OF TRUSTEE'S RESPONSIBILITIES Statement of R•sponsibiliti•s The Trust86 is responsible for preparing the trustee's report and financial statements in accordance with applicable law and United lQngdom Accounting Standards IU.K. 'GAAP°). The law applicable to Ghariti8s in England and Wales, the Charities Act 2011. the Charty (Accounts and Reports) Regulations 2008 and the provisions of the trust deed require the Trust88 to prepare financial statements for each financial year which give a true and fair view of the state of affairs of th8 Charity and of the income and expenditure of the Charity for that year. In preparing these financial statements, the Trustee is required to: select suitable accountlng pollcles end then apply them consistently., observe the methods and pnnciples in Accounting and Reporting by Chartlles.. Statement of R8comm8nded Practice applicable lo charities preparing their financial stalemenls in accordanc8 with the Financial Reporting Standard applicable in th8 Unit6d Kingdom and Republic of Ireland {FRS102)', make judgements and estimates that are reasonable and prudent., 8tate 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 Il is inapproprlale to presume thal the chanty will continue lo operate. The Trustee is responsible for keeping adequat8 accounting records th8t disclose with re8sonabl8 accuracy at any time the financial position of the Charity and enable it to ensure that the financial statements comply with the Charit18s Act 2011, the Charity (Accounts and Reports) Regulations 2008 and th8 provisions of the trust deed. It is also responsibl8 for safeguarding the assets of the Charity and for taking reasonable steps for the prevention and detection of fraud and other irregularities. Audltor A re501ution proposing that Knox Cropper LLP be reappointed as auditor wlll be put to the members. Approval by Trustee This port, was approved by the Truste8 on 121h September 2024 and signed on their behalf by ong, TD President and Chairman, MCF Page 12
RMIG ENDOWMENT TRUST REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEE OF THE RMIG ENDOWMENT FUND We have audited the financial statements of the RMIG Endowment Fund (the 'charit ) for the year ended 31 March 2024 which comprise the Stat8menl of Financial Activities, the Balance Sheet, the Stslement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting frameworft Ihal 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.. give a true and fair vi8w of the state of the Charitvs affairs as at 31 March 2024 and of it5 incomin9 resourc8s 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 Act 2011. Ba818 of oplnlon We conducted our audit in accordance with Intemetional Standards on Auditing {UK) (ISAS (UK)) and applicab16 law. Our SponSibl11t1eS under those standards a further described in the Auditor's responsibilities for the audit of the financial stalemènts section of our report. We are ind8P8nd8nt of the charity in accordance with the ethical qUIrementS 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 thal the audit ewdence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclu81on8 relatlng to golng concern In auditing the financial statements, we have concluded that th8 Truste6'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 identifi8d any malerial uncertainties relating to events or conditions that, indiwdually or collectively. may cast significant doubt on the charity's ability to continuè as a going con¢em for a period of at least hyelve months from when the financial slalements are authorised for issue. Our responsibilities and the responsibilities of th8 Trust88 Wlth respecl to going concem are described in the relevant sections of this report. other informalion The other informalion comprises the infomiation included in the annual report, other than th8 financial statements and our auditor's report Ihereon. The Trustee is responsible for the other information. Page 13
RMIG ENDOWMENT TRUST REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEE OF THE RMIG ENDOWMENT FUND Our opinion on the financial statements does not cover the other infonnation and we do not èxpress any fomi of assurance conclusion thereon. Our responsibility is to read Ihe other information and, in doing so. consider whether the other infomation is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise app8ars to be materially misstated. If identify such material inconsistencies or apparent material misstatements, we are required to determine whether ther8 is a material misstatement in the financial statements themselves. If, based on the work we have p8rfom18d, we conclude that there is a material isstatemenl of this olh8r information, we are required to report that fact. We have nothing to raport in this regard. Matt•rs on whlch w• arn rnqulrnd to report by •xcoptlon We have nothing to port in respèct of the following rnallers in relation lo which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinlon.. the Infomiation given in the financial statements Is Inconslstent in any material respect with the Trustee's report; or Sufflcient accounting records have not been kept; or the flnancial statements are not In 8greernent with the accountlng records. or we have not raceived all the infonnation and explanations we require for our audit. R?•pon8lbllltle8 of Tru8toe As explalned more fully in the Trustee's Responsibilities Statement set out on page 12, the Trustee Is responsible for the pparation of th8 financial statements and for being $81isfied that Ihey give a true and fair view, and for such intemal control as the Trustee detemiines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparlng the financial stslements, the Trustee Is responsible for assessing the Charlty's ability to conlinue as 8 going concern, disclosing, as applicable, matters related to going conc8m and using the going concern basis of accounting unl8SS the Trustee either Intends to liquidate the company or to C8ase operations. or has no realistic alternative but to do 80. Audltor's r•8pon81bllltle8 for the audlt of tha flnanclal 8tatement8 We hav8 been appointed as auditor under section 144 of the Charitles Act 2011 and report in accordance with the Act and relevant regulations made or having 8ff8Ct Ihereunder. Our obj8Ctiv8s are to obtain reasonable assurance about whether the fin8n¢lal statements as a whole are free from material misstatemenl, whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assuran¢8, but is not a guarantee that an audit onducted in accordance with ISAS (UK) will always detect a material mlsstatement 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 14
RMIG ENDOWMENT TRUST REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEE OF THE RMIG ENDOWMENT FUND Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design proc8dur8s in line wth 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.. The Charity is required to comply with charity law and, based on our know18dge of its activities, we identified thal the legal requirement to accurately aG¢ount for any restricted funds was of key significance. We galned an understanding of how the charity complied with its legal and regulatory framework, including the requirement to properly ac¢ounl for any reslricled funds, through discussions with management and a review of the documented policies, procedures and controls. The audit team, which is experienced in the audit of charities, considered the charity's suscepiibility to material mlsstatement and how fraud may occur. Our considerations included the risk of management overrid8. Our approach was lo check that all restrict8d income was properly identified and separately accounted for and to 8nsur8 that only valid and appropriate expenditure was charged to restricted funds. This included reviewing journal adjustments and unusual transaGlions. A further description of our responsibilities for the audit of the financial sla18m8nts is located on the Financial Reporting Council's website at.. www.frc.or auditorsre s. This description foms part of our auditor's report. Uso ol the audlt report This report is made solely to the Charity's trustee, as a body, in accordance wilh Part 4 of the Charities (Accounts and Reports} Regulations 2008. Our audit work has been undertaken, so that we might state lo the Charity's trustee Ihose matters we are required to slate to them in an auditor's report and for no oth8r purpose. To the fullest extent pemiitled by law, we do nol 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 fomied. 4y*< LL P Knox Cropper LLP Slalutory Auditor 65 Leadenhall Street London EC3A 2AD 12 kh 2&)y Knox Cropper LLP is eligibl8 for appoinlment as auditor of the charity by virtue of its eligibility for appointment as auditor of a Gompany under section 1212 of the Companies Ad 2006. Page 15
RMIG ENDOWMENT TRUST STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 MARCH 2024 Ilncluding an Income and Expenditure Account) Note Unrestricted Restricted Endowm6nt funds funds funds 2024 2024 2024 £'ooo £'ooo £'ooo Total Funds 2024 £'ooo Total Funds 2023 £'ooo INCOME Donalions Investment income 1,066 1,000 1,048 82 1,130 Total Income 82 2,066 EXPENDITURE Investment management costs (18) {18) (29) 18 18 29 Charltable activltles Masonic grants Non-masonic grants 15,3171 1256) 0 (5,573) (2,8781 256 2,872 Total expendlture Nel g81nsl{losses) on inve8tments Not Incomel(expendltur•) Transfer8 between funds 256 18 5,591 2,064 342 {4.269) 2,700 (256) 2,128 (2,397) (493) 10 (2.700) 572 NET MOVEMENT IN FUNDS 258 2.397 493 Total funds brought fonvard 2,642 956 11,283 14,881 15,374 Total funds carrled forward 700 10,711 All income and expenditure derive from conlinulng activiti8s and all gainsllos5es are included in the ststement of financial adivities The notes on pages 19 to 28 fomi part of these financial statements. The prior year figures are analy3ed by fund in note 13 on page 27. Page 16
RMIG ENDOWMENT TRUST BALANCE SHEET as at 31 March 2024 Not8 MarGh 2024 £'ooo March 2023 £'ooo FIXED ASSETS Investment prop8rt18S Investments 5.212 3,497 3,620 5.661 8,709 9.281 CURRENT ASSETS Debtors Cash at bank and in hand 995 3,813 1,432 4,895 4,808 6,327 CURRENT LIABILITIES Credltors falling due within one year NET CURRENT ASSETS (939) (4391 3,869 5,888 TOTAL ASSETS LESS CURRENT LIABILITIES 12,578 15,169 Creditors falling due after one year 194) (2881 Total not a88et8 12,484 14,881 CHARITABLE FUNDS Endowmènt funds Perynanent endowment Total unapplied retum 10 10 10.909 11981 10,711 10,909 374 11,283 Rgslrlcled funds Cadogan Trust Unrestrlctod funds 10 700 956 General reserves 10 1,073 2,642 Total charltablg fund8 12,484 14,881 The financial statements were approved and aulhorised for issue by the Truste8 Board on 12th September 2024 and signed on their behalf by.. esLo Chairma g,TD Clive Em8csoh Treasurer The notès on pages 19 to 28 form part of thes8 financial statement5 Page 17
RMIG ENDOWMENT TRUST CASH FLOW STATEMENT YEAR ENDED 31 MARCH 2024 Note 2024 £'ooo 2023 £'ooo Operating Activitie8 Nét cash provldod byl(u8ed Inl Oporatlng Activiti•s 4,718 2,100 Cash fl¢w•s from Investing activities Dividends and interest from investments Proceeds from the sale of investments Purchase of investments 1,130 2,700 1,000 1,700 Nèt cash provldod byllu8ed In) Invostlng ActivitlO8 2,700 Cash flows from Ilnanclng actlvltlo8 Bank loans (repaidytaken out Changè In cash and cash oqulvalonts In tho reportlng parlod Cash and cash equivalents at tha beginning of the reporting p8ri0d Cash and cash oqulvalont8 at the •nd of th• reportlng perlod 194 189 {1,082) 411 4,895 4.484 14 4,895 N¢)t•• on tho cash flow Statsment Reconclllatlon of net Incom•l{oxpendlturo) to not cash Ilow from oporatlng actlvitles Net movement in Funds as per the Statement of Financial Activities (2,397) (493) Adjustments for: Impaimient of Investment property Diwdends, interest and rents from investments Other movements in inveslments Decreasel{increasel in debtors Increasel(dec8Se) in creditors Net cash provlded byl{u8ed In) Oporatlng Actlvlti08 11,592) (1,130) (5361 437 500 (669) (1,000) 215 (149) 14) 2,100 Page 18
RMIG ENDOWMENT TRUST NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES (a) Statement of cornpllance The financial statemènts of the RMIG Endowment Trust (the "Charity.) hav8 b88n prepared in accordanc8 With applicable UK accounting stsndards. including Financial Reporting Standard 102 'The Financial Reporting Standard appllcable in the United Kingdom and th8 Republic of Ireland. ("FRS 102"). Additionally, they comply with the Stat8m8nt of Recommended Practice "Accounting and Reporting by Charities" (FRS 102 second adition) published in 2019 (the 'SORP") in all material respects. The Charity meèts the definition of a public benefit entity under FRS 102. (b} 8a818 of preparation The financial statements have been prepared on a going concem basis under the historical cost convention, as modified by thè revaluation of investments, on a basis consistent with previous years. Th8 functional currency of the Charity is consid8red to be Pounds Sterling because that is the currency of the primary economic environment in whlch the Charity oper8tes. Ic) Golng con¢orn 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 ha8 concluded that there are no material uncertainties related to events or conditions that may cast significanl doubt on the ability of the Charity to continue as a going Concem. The Trustee is of the opinion that the Charity will have sufficient resources to meet its liabilities as they fall due. (d) Incoffllng rosources Revenue is recognised when the significant risks and rewards of ownership have been transferred, the amount of revenue can bo maasured raliably, il is probable that future economic benefits will flow to th8 Charity and when the specific criteria relating to each of the Charity's revenue Ghannels have been met, as described below.. Rental and income is accounted for on an accruals basls under Ihe temis of the lease with the School. Interest on fixed-interest securitl8s is accounted for on an accruals basis. Dividends on equities are recognised on receipt of payment. Page 19
RMIG ENDOWMENT TRUST NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 (d) Re80urces oxponded Liabilities are recognised as expenditure as soon as there is a legal or constructlV8 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. Grants are recognised as expenditure in thè year in which the grant is formally approved by the Charity and has been communicated in writing to the recipient. except to the exient that il is subject to conditions that enable the Charity to revoke the award. (e) Allocation and apportionmont of costs Support costs include central functions and have been allocated to activity cost tegOrieS on basis consistent with the use of resources. (f) Employq• b•n•fits All staff are employed by the parent charity, The Masonic Charitable Foundation. No charge is made to the Charity in resp8Ct of staff providing seprfices lo the Charity. No ramuneralion is paid to trustees and no expenses r8imbur88d. Ig) Fund accountlng Unre5trlcted funds may be utili5ed for any purpose in eccordance with th8 charitable objectives of the Charity. The trustees took the decision at the end of the previous year to move the 8ndowm8nt fund to a lolal returns basis, resulting in a chang8 of policy. Investment Income and management fees are retained wilhin the CAIF and the endowment fund. Withdrawals from the CAIF are transferred to the general fund from the total unapplied return section of the endowment fund. {h) Inv•stmonts Investments are recognised initially at fair value whlch Is normally Ihe transaction price excluding transaction costs. Subsequently, they are stated at market value. All realised and unrealised gains and105ses ar8 r8cognised within the Statement of Financial Activities. Investments which the Charity holds for resale or pending their sale and cash or cash 8quivalents with a maturity date of less than one year. which are held for investment purposes, are disc105ed as current asset invgstments. (i) Financial assets and liabiliti08 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 b8comes a party to the contractual provisions of the instrument. Page 20
RMIG ENDOWMENT TRUST NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 Financial ass81s and liabililies 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 impaimient at Ihe end of each reporting period. Where settlement is not expècted within 12 months of the balanc8 sheet dale, then the asset or liability is discounted using the long 18m) return of inflation plus 4 Pern1 used as the target for the Charity'5 investment portfolio. Basic flnancial instruments include debtors, cash and creditors within the balance sheet. (j) Taxatlon The Charity is an exempt charity within the meaning of sch8dule 3 of the Charities Act 2011 and it is considered to pass the test set out in paragraph 1, schedule 6 of the Finance Act 2010. and th8r8for8 it meets the definition of a charity for U.K. Corporation Tax purposes. The Charity is unable lo recover Valued Added Tax (VATI incurred on expènditure. The amount of VAT that cannot be r8COV8r8d is included within the und8rtying cost to which il relates. {k) Soclal Invostm•nt Proporty The social investment property has been valu8d through the discounting of expected future lease payments using a yield of 5.50h as the cost of Capital, less the residual value of the provision for backlog r8pairs. This provision is being released back lo the endowment fund in line with the works being completed and charged to th8 unreslncled general reserve. The provision for backlog repairs is reviewed on an annual basis. and adjusted a5 required in accordance with the evolving cost for the planned works. Gains or losses are recognised within the Statement of Financial Activities. No depreciation is prowded on social investment properties. Page 21
RMIG ENDOWMENT TRUST NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 INVESTMENT INCOME Unrestricted Restricted Endowrnent Total funds funds funds Funds 2024 2024 2024 2024 £'ooo £'ooo £'ooo £'ooo Total Funds 2023 £'ooo Interest on bank deposit8 Income from investment portfolios Rental income - Royal Masonic School Rental income- other Incom8- other 225 225 45 82 82 799 10 14 141 799 799 10 14 82 1.130 1,000 CHARITABLE ACTIVITIES Unrestricted Rastricted Endowment Total funds funds funds Funds 2024 2024 2024 2024 £'ooo £'ooo £'ooo £'ooo Total Funds 2023 £'ooo Ma8onlc Foundation scholarships & bursaries (4) Non-Ma8onlc Foundation scholarshlps & bursarles Property expenses Support Costs 256 256 5,100 217 110 2,655 111 5.100 217 256 4. SUPPORT COSTS Unrestricted Restricted Endowment Total funds funds funds Funds 2024 2024 2024 2024 £'ooo £'ooo £'ooo £'ooo Total Funds 2023 £'ooo Interest and bank charges Legal and administrative Governance costs 13 195 13 195 19 82 10 217 217 111 5. STAFF COSTS The Charity employed no staff during the year (2023.. None). No staff recharges have been made from the MCF to the Charity. No Trusteè received remuneration from the Charity during the year12023: £ Nil). No Truslee's expenses were incurred during the year (2023: £ NII). Page 22
RMIG ENDOWMENT TRUST NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 SOCIAL INVESTMENT PROPERTY March 2024 £'ooo March 2023 £'ooo Balance at 1 April 2023 Additional provision for backlog repairs Utilisation of provision for backlog r8pairs Balance 8t 31 March 2024 3,620 13,500) 5,092 2,951 (1,9861 2,655 5,212 3,620 INVESTMENTS March 2024 £'ooo March 2023 £'ooo Fixed Asset Investments.. - Managed Funds MCF CAIF 3,497 5,661 MOVEMENTS IN INVESTMENTS Ll•t•d 8alanc8 at 1 April 2023 Additions Disposals Investment income reinvested Management fees charged to the fund Gainsl(losses) Balance at 31 March 2024 5.661 7,576 (2,700) 82 (18) 472 (1,7001 141 (2gi {327) 3,497 5,661 RECONCILIATION TO SOFA Gains on listed investments Provision for backlog repairs on social investment property 472 1,592 (327) 669 2,064 342 Page 23
RMIG ENDOWMENT TRUST NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 DEBTORS March 2024 £'ooo March 2023 £'ooo Prepayments and accruad income 995 1,432 995 1.432 CREDITORS March 2024 £'ooo March 2023 £'ooo Falllng duo Wlthin on• year Bank loans and overdrafts Trade creditors Accruals 193 737 193 234 12 939 439 Falllng due aft•r more than one yoar March 2024 £'ooo March 2023 £'ooo 8ank loans 94 288 94 288 A new bank loan vms taken out on 7th April 2021 for an amount of £835,817. It is repayable in 52 monthly instalments erKling 10th August 2025. Int8r8St is chargeable at a fixed rate of 3.31% Page 24
RMIG ENDOWMENT TRUST NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 10. MOVEMENT IN FUNDS Balance at Income Expenditure 1 April 2023 £'ooo Gainsl Transfars Balance at (losses) 31 March 2024 £'ooo £'ooo £'ooo £'ooo £'ooo Endowment funds Permanant endowment Total unapplied return 10,909 374 10,909 (198) 82 (18) 2,064 (2.7001 11,283 82 18 2,064 2,700 10,711 Restrlcted funds General reserves: Cadogan 956 (256) 700 Unrestrict•d fund8 General reserves 2.642 1,048 15,317> 5,317 2.700 1,073 2,642 1,048 2.700 1,073 Total funds 14,881 1,130 5,591 2,064 12,484 PRIOR YEAR Balance at Income Expenditure 1 April 2022 £'ooo £'ooo Gainsl Transfers Balance at (losses) 31 March 2023 £'ooo £'ooo £'ooo £'ooo Endowment funds Permanent endowment Total unapplied retum 10,909 (380) 10,909 374 141 (29) 342 300 10,529 141 29 342 300 11,283 Rostrlcted funds General reserves.. Cadogan 1,066 {110) 956 Unrostrictod funds General reserves 4,845 859 (2.762) (300) 2,642 4,845 859 2,762 300 2,642 Total funds 15,374 2,066 2.901 342 14,881 Page 25
RMIG ENDOWMENT TRUST NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 11. ASSETS AND LIABILITIES Inveslment Investrnents Properties £'ooo Current Liabilities & Assets Provisions £'OOD £'ooo Fund Total £'ooo £'ooo Endowment funds Permanent endowment Totsl unappli8d return 909 4,303 10.000 (6,503} 10.909 (198) 2,002 3.497 2,002 10,711 R08trlcted funds General reserves.. Cadogan Unro8trictod funds General reserves 7nr) 700 2.106 (1,033) 1,073 2,106 1,073 Totsl funds 5,212 3,497 4,808 12,484 PRIOR YEAR Investment Investments Prop8rt188 £'ooo Current Liabilities & Assets Provlsions £'ooo £'ooo Fund Total £'CNJO £'ooo Endowmont fund8 Pemianent endowment Total unapplied retum 909 2,711 10,000 (4.339) 10,909 374 2.002 Restrlcted funds General res&rves'. Cadogan Unrostrlctod funds Ganeral reserves 956 956 3,369 (727) 2,642 727 2,642 Total funds 3,620 5,661 6,327 727 14.881 12. RELATED PARTY DISCLOSURES As described in the trustees reporl the Charity has a close working relationshlp with the Royal Masonic School for Girls (the 'School"). Two Irusl88s of the ultimate holding company are also governors of the School. Al the balance sheet date, a total amount of £Nil du8 from the Charity to the School (2023.. £Nil) was included in other creditors (note 9). The Charity executed a long-tem lease with the School on 16th June 2023. and the tems of this document have been used for the purpose of valuing the social investment property as per note 6 of th8 financial statements. Page 26
RMIG ENDOWMENT TRUST NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 13. STATEMENT OF FINANCIAL ACTIVITIES (Including an Income and Expenditure Account) 12 MONTHS ENDED 31 MARCH 2023 Note Unrestricled Restricted Endowment funds funds funds 2023 2023 2023 £'ooo £'ooo £'ooo Total Funds 2023 £'ooo INCOME Donations Inv8Stment income 1,066 1,066 1,000 859 141 Total Income 859 1,066 141 2,066 EXPENDITURE Investment management costs (29) (29) 29 29 Charltable actlvltl•s Masonic grants Non-masonic grants (2,766) 1110) 0 (2,876) 2,762 110 2,872 Total •xp•nditure 2,762 110 29 2.901 Net gainsl(Ioss8sI on Investments Net Incomol(oxp6ndlturo) Transfers between fund5 342 342 {1,9031 {300) 956 454 (493) 300 NET MOVEMENT IN FUNDS 2,203 956 754 493 Total funds brought forward Total funds carried forward 10,529 15.374 2,642 956 11,283 14,881 Page 27
RMIG ENDOWMENT TRUST NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 14. ANALYSIS OF CHANGES IN CASH AND CASH EQUIVALENTS LESS DEBT At 1 April Cash Flow Non-cash At 31 March 2023 Changes 2024 £'ooo £'ooo £'ooo £'ooo Cash and cash aquivalonts Cash at bank and in hand 4.895 (1.082) 3,813 1.082 Borrowlng8 Bank loans due within one year Bank loans due after on8 year (193) 288 481 194 (194) 194 (1931 94 287 194 Total cash and cash •qulvalont81088 d•bt 15. ULTIMATE CONTROLLING PARTY The ultimate controlling party is the Masonlc Charitable Foundation (Registered Charity No. 1164703. Company Number 097518361, which 18 the sole member of the company. Consolidated accounts for the MCF. which include the accounts of lh8 Charity, can b8 obtained from the registered office of the Charlty. Page 28