Annual Review 2011/12 - Royal Masonic Benevolent Institution

Excellent financial results
in a difficult financial
environment Treasurer's report
I am pleased to report that the RMBI delivered excellent
financial results during 2011-12 in a very difficult financial
environment. The operating efficiency of our Homes
improved, charity income increased substantially, and
our capital improvement and maintenance programme
continued as planned.
“
The staff and
residents make a
happy and caring
environment.
One has ‘space
to be alone’ if
you wish it but
companionship is
always available.”
A resident at Zetland Court,
Bournemouth
Our Homes performed well as our
investments in property, systems and
training began to bear fruit. Despite
receiving no increase in funding from
local authorities and primary care
trusts, RMBI fee income was up by
£1.3 million (4%) as we increased
the number of rooms available
and maintained high occupancy
levels. The Homes’ operating costs
decreased significantly due to our
efforts to improve staff planning and
scheduling. This not only saves money,
but also results in more consistent and
high-quality care for our residents.
Total income rose to £40.4 million
in 2011-12, an increase of 6%. In
particular, there was a significant
increase in legacy income totalling
£4.4 million. Donations held up well,
totalling £2.5 million. This includes
a £180,000 grant received from the
Masonic Samaritan Fund for the
purchase of hoists and disability aids.
We are thankful for the continued
generosity of the Masonic community,
which remains remarkably resilient in
the face of difficult economic times.
2011-12 marked the third year of
our capital improvement and
maintenance programme, and the
RMBI invested a further £13.1 million
in our operating infrastructure.
While the largest single project is the
rebuilding of James Terry Court in
Croydon, major investments were also
made in several of our other Homes.
We are on track to complete this
programme next year.
These capital expenditures were
funded by drawing on our investment
portfolio which, as a result, decreased
to £37.6 million. Withdrawals have
now ceased and our current cash
balance should be sufficient to fund
capital expenditures in 2012-13.
Looking ahead, the care sector
and the RMBI will continue to face
a challenging environment, and
Government funding levels are
unlikely to increase. In response,
the RMBI will endeavour to further
improve operating efficiency, maintain
a strong balance sheet and, as always,
we will rely on the tremendous
support of the Masonic community.
RMBI ANNUAL REVIEW 2011–12