Annual Report 2010/2011 - Royal Masonic Benevolent Institution

A SOLID FINANCIAL PERFORMANCE 23
a sOLID
FINANCIAL
PERFORMANCE
All figures are in millions
CHARITY INCOME
£1.3
£2.3
£2.7
£3.8
2009-10 2010-11
£1.9 £2.2
£1.6
£1.8
Treasurer’s report
and accounts
The RMBI produced another solid
financial performance during
2010/2011. This is especially
gratifying at a time of continued
weakness in the economic
environment and the onset of
Government funding cutbacks in
the care sector.
2010/2011 was the first full year of
the capital improvement and planned
maintenance programme approved by
the Board of Trustees and we invested
£8.1 million during the year. As a
result of this £33 million multi-year
programme, our residents will enjoy
safer, more comfortable, and more
attractive homes.
However, implementing building
works of this scale inevitably means
that some rooms in our Homes
must be temporarily taken out of
commission. Despite this, Home
income was up 4% over last year
as higher occupancy levels helped
offset the reduced number of rooms
available. This was a direct result
of the skill with which our Property
Team, Home Managers and their
staff managed this work.
Home running costs were also up,
by 5%. Much of this increase was
driven by the increased costs of our
maintenance and safety programmes.
RMBI ANNUAL REVIEW 2010–2011
After taking into account the
individual charitable contributions,
even with these additional costs, our
Homes essentially operated at a small
surplus during 2010/2011.
Charity income totalled £8.0 million,
down £1.6 million on the previous
year, largely due to lower Masonic
donations and fewer sales of
non-operational assets. Legacies,
however, rose to a record £2.2 million.
Total funding required to support
care home operations amounted to
£5.3 million, including £1.5 million of
planned maintenance spending.
In total, the RMBI generated a surplus
of £3.1 million after investment gains
and actuarial gain in the Defined
Benefit pension scheme.
Throughout 2010/2011, the RMBI
maintained its financial strength.
Our investment portfolio performed
well, generating market gains of
£2.1 million. After withdrawing £5.3
million to fund both operating and
capital commitment, the portfolio’s
market value was £50.1 million at the
end of March 2011. Cash stood
at £12.1 million and net assets before
the pension scheme liability increased
to £118.2 million.
Looking ahead, we expect 2011/2012
to be a challenging year. The outlook
for the economy and the care sector
remains uncertain. The full extent of
Government funding cutbacks is only
now being felt. At the time of writing
this, there are almost daily press
reports on the financial difficulties
of some major private care providers.
Nevertheless, with a strong balance
sheet and the unwavering support
of Freemasons and their families, the
RMBI is well positioned to succeed in
this difficult environment.
“I think the Home is excellent. Staff are lovely and my
mother has settled well and has now been here for
nearly three years.”
A relative of a resident at Barford Court, Hove
“I get help with most things that I am unable to do myself.
There is always someone here if I need them.”
A resident at Lord Harris Court, Berkshire
Masonic donations
£3.8m Masonic donations
£2.7m
Investments
£1.6m Investments
£1.8m
Legacies
£1.9m Legacies
£2.2m
Miscellaneous
£2.3m Miscellaneous
£1.3m
TOTAL
£9.6m TOTAL
£8.0m
CHARITABLE EXPENDITURE
£0.5 £0.4
£0.6 £0.6
£0.8 2009-10
£0.9 2010-11
£3.9 £3.8
Charitable support
£3.9m Charitable support
£3.8m
Central care
£0.8m Central care
£0.9m
Governance
£0.6m Governance
£0.6m
Fundraising
£0.5m Fundraising
£0.4m
TOTAL
£5.8m TOTAL
£5.7m
CASH AND OTHER ASSETS
£13.4
£12
£50.4
2009-10 2010-11 £56.1
£52.5
£50.1
Care Homes and property £50.4m Care Homes and property £56.1m
Investments
£52.5m Investments
£50.1m
Net current assets
£13.4m Net current assets
£12.0m
TOTAL
£116.3m TOTAL
£118.2m