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2021-03-31-accounts

DocuSign Envelope ID: 1F0B5447-6964-4FB3-9645-F76824A06A46

Charity number: 1001363

SIR JAMES KNOTT TRUST

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

DocuSign Envelope ID: 1F0B5447-6964-4FB3-9645-F76824A06A46

SIR JAMES KNOTT TRUST
CONTENTS
Page
Reference and administrative details of the charity, its Trustees and advisers 1
Trustees' report 2 - 6
Independent auditor's report on the financial statements 7 - 10
Statement of financial activities 11
Balance sheet 12
Statement of cash flows 13
Notes to the financial statements 14 - 34

DocuSign Envelope ID: 1F0B5447-6964-4FB3-9645-F76824A06A46

SIR JAMES KNOTT TRUST

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021

Trustees

Mr I B Speke DL, Chair Mr J A Baker-Cresswell Revd F J Sample Sir W J B Riddell

Registered charity number

1001363

Principal office

Suite 103, First Floor Broadacre House Market Street East Newcastle upon Tyne NE1 6HQ

Trust Secretary

Ms J Curry

Independent auditor

Ryecroft Glenton Chartered Accountants 32 Portland Terrace Newcastle upon Tyne NE2 1QP

Bankers

HSBC Plc Floor 3 Central Square South Newcastle upon Tyne NE1 3AZ

Investment Advisers

Newton Investment Management Limited The Bank of New York Mellon Centre 160 Queen Victoria Street London EC4V 4LA

Custodian of Investments

The Bank of New York Mellon One Canada Square London EC14 5AL

Page 1

DocuSign Envelope ID: 1F0B5447-6964-4FB3-9645-F76824A06A46

SIR JAMES KNOTT TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021

In a year in which 222 grants to the value of £1,711,769 were made, Trustees are delighted to present their annual report together with the audited financial statements of the Trust for the year 1 April 2020 to 31 March 2021.

The Trust's History

Sir James Knott was born at Howdon in 1855 and started work as a clerk at a Quayside shipping office aged 14. His fortune was based on the Prince Line, shipping company which he founded. During the First World War he sold the company and in 1924, left the Northeast, with his wife Lady Margaret and settled in Jersey where he formed Samares Investments, to further his philanthropy. The couple were heavily influenced by the loss of two of their sons in the First World War. Sir James died in 1934, but his legacy lives on through the Trust and thousands of charities that have benefited from the endowment that he created.

The original settlement of funds was established by Sir James Knott on 29th October 1920. All of the affairs of the Trust were carried out in Jersey which was the final resting place of Sir James and Lady Knott. In 1990 It was agreed to move a substantial proportion of that fund into an endowed trust under the governance of a newly registered charity which was named Sir James Knott 1990 Trust. In 1995 the name of the Trust was changed by deed to The Sir James Knott Trust.

The Sir James Knott Trust is a registered Charitable Trust based in Newcastle upon Tyne which gives grants in support of charitable activity across Northumberland, Tyne and Wear, County Durham, and Hartlepool. The Trust is an unincorporated Trust, constituted under a Trust Deed dated 12 December 1990.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

Governance and Management

There have been no changes to the make-up of the Governing body of the Trust this year. Formal Trustee meetings were held four times last year to review the strategy and areas of activity of the Trust, including grant making, investment portfolio performance, reserves, risk management, policies, resources, and staff performance.

Trustees are chosen based upon experience and knowledge of charities in general and expected to have an affinity with the aims of the Sir James Knott Trust. Newly appointed Trustees 'shadow' a Trustee meeting prior to starting their trusteeship. They are provided with the Charity Commission’s guidance on the roles and responsibilities of Trustees and key documents relating to the Trust. Ongoing training is offered to all Trustees and opportunities are offered to visit the charities that we support. The skills, experience, diversity, and input of Trustees are reviewed regularly.

The administration of grants and processing of applications prior to consideration by the Trustees is delegated to the Trust Secretary who is responsible for the management of the Trust. The Trust Secretary is supported by the Administrator who together operate the charity on a day to day basis. The Trust is supported by a team of freelance assessors and a freelance finance manager. The Trust also draws upon the consultancy support of Barbara Gubbins CBE. Staff are remunerated in line with roles and experience, and this is reviewed annually.

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DocuSign Envelope ID: 1F0B5447-6964-4FB3-9645-F76824A06A46

SIR JAMES KNOTT TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

(continued)

Risk Management

During the year, the Trustees and Trust Secretary continued to implement the revised Risk Framework set out in the previous year in order to mitigate major risks to which the Charity is exposed. The Trust’s investment activities represent its main financial risk, and this risk came to prominence towards the end of the previous financial year when, because of COVID-19, the value of investments decreased rapidly. Following this, the Trust's investments have shown significant growth as global markets made a full recovery in 2021.

Applications for grants are assessed carefully to ensure full due diligence is carried out on the organisation applying. Judgements on need, impact and merit are made around the activity proposed. Applications for grants above £10,000 usually receive an onsite visit before a grant is made. The Trust displays a willingness to take appropriate risks in grant making, sometimes being the first to support a venture to lever in additional funds and provide confidence to other funders.

Conflict of Interest

Trustees and staff are always expected to conduct the business of the Trust with integrity. All complete an annual register of interests, and any declarations of conflicts are recorded at the start of every Trustee meeting.

Grant Making Policies

The Trust allocates grants to improve the lives of people living in Tyne & Wear, Northumberland, County Durham, and Hartlepool. Trustees particularly follow the wishes of the Trust’s founder by supporting causes that were of significant interest to him. Sir James Knott wanted to ensure that people had a secure place to live and a job. He supported military and maritime good causes. He was a man of faith and supported places and events that brought the community together.

The Trust is a generalist grants funder, with the flexibility to provide grants for core running costs, projects, and capital expenditure. Trustees recognise that the opportunities for charities to secure multi year core funding are diminishing and have cautiously moved towards offering larger grants over a longer period. The Trust is prepared to join with other funders to make larger grants.

The Trust recognises the value organisations still place on small grants that can be administered quickly. Applications for grants of £1,000 and under are still considered and made between meetings by one Trustee and the Trust Secretary. They are listed for scrutiny at the subsequent Trustee meetings.

The Trust principally offers grants to Registered Charities but is also willing to support constituted community groups and social enterprises.

Grant Making Activities

The Trust continued to meet its charitable objectives and to follow the wishes of the late Sir James Knott through the provision of 222 grants of between £500 and £250,000 to charitable organisations in the year to 31st March 2021. The full list of grants above £1,000 is outlined in note seven.

Samares Investments Limited is a philanthropic organisation with historical links to this Trust and is based in Jersey. The Trust is grateful to Samares Investments Limited for continuing to provide funds to support the Sea Cadet Units within the Trust’s area of benefit and for the significant donations to support the Trust’s larger grant making activities.

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DocuSign Envelope ID: 1F0B5447-6964-4FB3-9645-F76824A06A46

SIR JAMES KNOTT TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

COVID -19 - The Trust's Response

The Trust was heartened by how quickly communities came together to support people in crisis. At the end of 20/21, the Trust made sizeable donations to both Community Foundations in the Trust's area of benefit. This was to ensure that there was a flexible, swift, coordinated response to emergency Covid funding. The Trust also recognised that individuals in poverty required emergency support and made an enhanced contribution to the Greggs Foundation’s Hardship Fund to support individuals.

From the outset of the pandemic the Trust acted quickly contacting all grant recipients to reassure them that the Trust would be flexible around any requests to vary the terms of the grant awards and would be pragmatic around monitoring requirements.

At the start of 20/21, the Trust anticipated a significant decrease in income from investments. Trustees agreed a deficit budget, expecting to heavily draw upon reserves in a year in which Charities and communities would rely upon our support despite the short-term drop in income. As the year progressed it became apparent that the drop in income was less severe than anticipated, but the Trust nevertheless opted to dip into reserves in a planned fashion.

Investment Policy and Performance

The Sir James Knott Trust is a lasting testimony to the generosity and philanthropic beliefs of Sir James Knott. The Trustees are committed to ensuring that the Trust maintains a diversified portfolio of investments, with a balance between growth and income, to ensure the Trust is able to continue to award grants for charitable activity across the North East of England for many years to come.

As such the Trustees believe it appropriate to take a long term approach. The Trustees have instructed the Investment Manager to take account of socially responsible, ethical, and environmental considerations in so far as it is believed that such considerations will benefit performance and/or reduce risk.

The Trustees monitor the performance of the portfolio against an internal benchmark reflecting the Trust’s asset allocation and the Investment Manager provides the Trust with quarterly financial reports which are reviewed by a Trustee. The Investment Manager presents a financial review to the full body of Trustees twice a year.

Since the market decline of 2019/20 caused by the Covid 19 pandemic, the Trust's investments have shown a significant recovery in the year ended 31 March 2021. The fund recorded an increase of 23% during the year, taking it back to pre-pandemic levels. Income from investments fell by 12% on the previous year.

Reserves Policy

The Trustees aim to maintain free reserves in unrestricted funds at a prudent level; these are held to smooth the quantum of grants paid in the normal course of business, to provide sufficient funds not only to cover support and governance costs, but also to ensure there are funds available to respond to current and future applications.

Total funds held by the charity amounted to £63,066,310 and this included £8,939,572 of endowment funds. Within unrestricted funds are investments totalling £52,844,745 held to generate income and other fixed assets of £3,103. Investments are held to generate future income and are not classed as part of the free reserves of the charity.

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DocuSign Envelope ID: 1F0B5447-6964-4FB3-9645-F76824A06A46

SIR JAMES KNOTT TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

(continued)

The level of free reserves as at 31st March 2021 was £1,278,890. The balance of unrestricted reserves is held in view of the volatility of the investment markets, anticipated reduction in dividends and ongoing commitments of the Trust. The Trustees consider that this level of unrestricted reserves is in accordance with the policy above.

Principal Funding and Expenditure

The Trust is reliant on the income from its investments to meet its needs. Gross investment income for the year was £1,453,626. Investment management and custody fees of £185,863 were charged in accordance with the current fee structure. These charges are expensed against the investment assets.

Support and governance costs were £261,479. The surplus available for distribution after these expenses was £1,209,303 (excluding restricted income received). Grants awarded (excluding grants from restricted funds) amounted to £1,224,316.

Total expenditure exceeded total income by £200,876, before adjustment for investment gains of £11,828,007.

Plans for the Future

In the coming year, Trustees will look to ensure as much funding as possible goes to Charities in the North East of England to build the recovery from COVID 19. The Trust will continue to look for ways to reduce operating costs, utilise reserves and draw in resources from Samares Investments Ltd. Trustees will build upon their desire to ensure that the resources of the Trust are put to work where they are most needed. The Trust will find ways to deepen our impact and strengthen charities across the region for years to come.

The Trust understands that funding can be used to best effect and have the greatest impact when funders work together. We value the partnerships we have forged through networking with the Northeast Trusts Group, the Northeast Funders Forum, and the Association of Charitable Foundations.

Public Benefit

The Sir James Knott Trust exists and operates for the public benefit. Through its grant making as listed in this report, the Trustees are confident that the Trust is well placed to continue to deliver identifiable public benefit to the community in the Northeast of England. The Charity Commission’s general guidance on public benefit is considered by Trustees when reviewing the aims and objectives, the grant making policies and in planning future activities.

Fundraising

The Trust does not conduct any fundraising, use professional fundraisers or subscribe to any scheme of fundraising regulation.

Trustees Remuneration

Trustees receive no financial benefit or expenses from the Sir James Knott Trust.

Salaries

The Trust employs two members of staff. Salaries are reviewed annually. In the previous year Trustees carried out a benchmarking exercise against similar roles. Following completion of this exercise a restructuring exercise and salary review was planned and subsequently implemented in the current year.

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DocuSign Envelope ID: 1F0B5447-6964-4FB3-9645-F76824A06A46

SIR JAMES KNOTT TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

Financial risk management

The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

Statement of Trustees' responsibilities

The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the members of the board of Trustees and signed on their behalf by:

Mr I B Speke DL

(Chair of Trustees) Date: 21 July 2021

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DocuSign Envelope ID: 1F0B5447-6964-4FB3-9645-F76824A06A46

SIR JAMES KNOTT TRUST

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SIR JAMES KNOTT TRUST

Opinion

We have audited the financial statements of Sir James Knott Trust (the 'charity') for the year ended 31 March 2021 which comprise the Statement of financial activities, the balance sheet, the statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that 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).

The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' 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 identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

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SIR JAMES KNOTT TRUST

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SIR JAMES KNOTT TRUST (CONTINUED)

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, the Trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

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DocuSign Envelope ID: 1F0B5447-6964-4FB3-9645-F76824A06A46

SIR JAMES KNOTT TRUST

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SIR JAMES KNOTT TRUST (CONTINUED)

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement 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.

The extent to which the audit was considered capable of detecting irregularities including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: -

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• we identified the laws and regulations applicable to the Charity through discussions with trustees and other management, and from our commercial knowledge and experience of the charity sector;

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Charity, including the Charities Act 2011 and Charity Commission regulation.

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting Charity Commission correspondence; and

• we ensured that the identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the Charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: -

• making enquiries of management as to where they considered there was susceptibility to fraud and their knowledge of actual, suspected and alleged fraud;

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and

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DocuSign Envelope ID: 1F0B5447-6964-4FB3-9645-F76824A06A46

SIR JAMES KNOTT TRUST

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SIR JAMES KNOTT TRUST (CONTINUED)

To address the risk of fraud through management bias and override of controls, we: -

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: -

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Ryecroft Glenton Chartered Accountants Statutory Auditor 32 Portland Terrace Newcastle upon Tyne NE2 1QP

22 July 2021

Ryecroft Glenton are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

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DocuSign Envelope ID: 1F0B5447-6964-4FB3-9645-F76824A06A46

SIR JAMES KNOTT TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

Note
Income and
endowments from:
Donations and legacies
3
Investments
4
Other income
5
Total income and
endowments
Expenditure on:
Raising funds
6
Charitable activities
11
Total expenditure
Net expenditure
before net
gains/(losses) on
investments
Net gains/(losses) on
investments
18
Net movement in
funds
Reconciliation of
funds:
Total funds brought
forward
Net movement in funds
Total funds carried
forward		 Endowment
funds
2021
£
-
-
-
-
-
-
-
-
1,671,282
1,671,282
7,268,290
1,671,282
8,939,572		 Restricted
funds
2021
£
487,453
-
-
487,453
-
487,453
487,453
-
-
-
-
-
-		 Unrestricted
funds
2021
£
-
1,453,626
17,156
1,470,782
185,863
1,485,795
1,671,658
(200,876)
10,156,725
9,955,849
44,170,889
9,955,849
54,126,738		 Total
funds
2021
£
487,453
1,453,626
17,156
1,958,235
185,863
1,973,248
2,159,111
(200,876)
11,828,007
11,627,131
51,439,179
11,627,131
63,066,310		 Total
funds
2020
£
146,800
1,825,666
7,000
1,979,466
234,387
1,832,306
2,066,693
(87,227)
(3,932,763)
(4,019,990)
55,459,169
(4,019,990)
51,439,179

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 14 to 34 form part of these financial statements.

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DocuSign Envelope ID: 1F0B5447-6964-4FB3-9645-F76824A06A46

SIR JAMES KNOTT TRUST

BALANCE SHEET AS AT 31 MARCH 2021

Note
Fixed assets
Tangible assets
17
Investments
18
Current assets
Debtors
19
Cash at bank and in hand
Creditors: amounts falling due within one
year
20
Net current assets
Total assets less current liabilities
Total net assets
Charity funds
Endowment funds
22
Unrestricted funds
22
Total funds		 144,994
1,227,470
1,372,464
(93,574)		 2021
£
3,103
61,784,317
61,787,420
1,278,890
63,066,310
63,066,310
8,939,572
54,126,738
63,066,310		 133,197
1,280,662
1,413,859
(88,699)		 2020
£
4,306
50,109,713
50,114,019
1,325,160
51,439,179
51,439,179
7,268,290
44,170,889
51,439,179

The financial statements were approved and authorised for issue by the Trustees on 14 July 2021 and signed on their behalf by:

Mr I B Speke DL (Chair of Trustees)

The notes on pages 14 to 34 form part of these financial statements.

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SIR JAMES KNOTT TRUST

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2021
Note
Cash flows from operating activities
Net cash used in operating activities
25
Cash flows from investing activities
Dividends, interest from investments
Purchase of tangible fixed assets
Net cash provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
26
The notes on pages 14 to 34 form part of these financial statements		 2021
£
(1,494,493)
1,441,301
-
1,441,301
(53,192)
1,280,662
1,227,470		 2020
£
(1,360,872)
1,825,666
(1,229)
1,824,437
463,565
817,097
1,280,662

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DocuSign Envelope ID: 1F0B5447-6964-4FB3-9645-F76824A06A46

SIR JAMES KNOTT TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. General information

Sir James Knott Trust is an unincorporated Charitable Trust, registered in England and Wales, charity number: 1001363. The address of the registered office is Suite 103, First Floor, Broadacre House, Market Street East, Newcastle upon Tyne, NE1 6HQ.

The charitable trust is a grant making charity, which makes donations in support of registered charities across Northumberland, Tyne and Wear, County Durham and Hartlepool.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Sir James Knott Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

2.2 Going concern

There are no material uncertainties about the charity's ability to continue as a going concern. The Coronavirus pandemic has not altered that conclusion.

2.3 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Restricted funds, which include endowment funds, are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund. Investment income generated from funds is all unrestricted.

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SIR JAMES KNOTT TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.4 Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Income from grants is recognised when there is evidence of entitlement to the grant, receipt is probable and its amount can be measured reliably. Coronavirus job retention scheme grants are recognised on a straight line basis over the furlough period for each relevant employee.

2.5 Expenditure

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support and governance costs involved.

Charitable activities are costs incurred on the charity's grant making operations, including support costs and costs relating to the governance of the charity.

Support costs are those incurred in support of expenditure on the activities of the charity.

Governance costs are those incurred in compliance with constitutional and statutory requirements of the charity.

Costs of raising funds are investment management and custody fees.

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

All expenditure is inclusive of irrecoverable VAT.

2.6 Tangible fixed assets and depreciation

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses.

Depreciation is provided on the following bases:

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.7 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the balance sheet date. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the statement of financial activities.

2.8 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

2.9 Operating leases

Rentals paid under operating leases are charged to the statement of financial activities on a straight line basis over the lease term.

2.10 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.11 Foreign currencies

The charity holds investments denominated in foreign currencies. Transactions in foreign currencies are translated into sterling at the rate ruling on the settlement date. Exchange gains and losses are recognised within net gains on investments in the statement of financial activities.

2.12 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.13 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.14 Liabilities

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.15 Pensions

The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year.

3. Income from donations and legacies

Restricted Total Total
funds funds funds
2021 2021 2020
£ £ £
Donations from Samares Investments limited 487,453 487,453 146,800

4. Investment income

Unrestricted
funds
2021
£
Dividends received
1,452,625
Interest received
1,001
1,453,626		 Total
funds
2021
£
1,452,625
1,001
1,453,626		 Total
funds
2020
£
1,822,582
3,084
1,825,666

5. Other incoming resources

Grants returned
Job retention scheme grants		 Unrestricted
funds
2021
£
2,000
15,156
17,156		 Total
funds
2021
£
2,000
15,156
17,156		 Total
funds
2020
£
7,000
-
7,000

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SIR JAMES KNOTT TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

6. Investment management costs

Unrestricted
funds
2021
£
Fees paid to investment manager
172,255
Fees paid to custodian
13,608
185,863		 Total
funds
2021
£
172,255
13,608
185,863		 Total
funds
2020
£
221,518
12,869
234,387

7. Grants to institutions

Payment of grants
Payment of grants		 Grants to
Institutions
2021
£
1,711,769
Grants to
Institutions
2020
£
1,582,671		 Total
funds
2021
£
1,711,769
Total
funds
2020
£
1,582,671

An analysis of grants made to institutions is provided below and on subsequent pages.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

7. Analysis of grants to institutions (continued)
nalysis of grants to institutions (continued) 2021
£
1st Burnmoor Scout Group 10,000
93rd Newcastle Scout Group 2,500
Action Foundation 7,000
AF&V Launchpad Limited 5,000
AIM Northeast Limited 5,000
Allendale Youth Ambition 10,000
Alnwick District Playhouse Trust 5,000
Amble Youth Project Limited 2,500
Arcadea 2,000
Artichoke Trust 5,000
Ashington Unit 12 of the Sea Cadet Corps 4,000
Awards for Young Musicians 2,000
Baby Equipment Loans Service (BELS) 4,304
Baby Equipment Loans Service (BELS) 5,000
Barnardo's 5,000
Beach Access North East 7,500
Bede Community Primary School 3,400
Bell View (Belford) 5,000
Bensham & Saltwell Alive 5,000
Bilton Hall Community Trust 5,000
Birkheads Wild CIC 5,000
Bishop Auckland Table Tennis Club 10,000
Blyth Valley Enterprise Limited 4,745
Bright Futures NE 9,089
Building Self Belief CIO 5,000
Cambois Amateur Rowing Club 3,900
Chester-le-Street Unit of the Sea Cadet Corps 4,000
Children North-East 4,000
Chopwell Regeneration CIO 15,000
Church of England Children's Society 15,000
Citizens Advice Gateshead 26,000
Clegwell and Hartleyburn Community Hub (CIO) 20,000
Coach Core 5,000
Community Foundation Serving Tyne & Wear and Northumberland 10,000
Community Foundation Serving Tyne and Wear & Northumberland 10,000
Connected Voice 7,000
Contact (Morpeth Mental Health Group) Limited 6,000
County Durham Community Foundation 10,000
County Durham Community Foundation 10,000
Cramlington Rockets RLFC 10,000
Cramlington Voluntary Youth Project Limited 15,000
Cruse Bereavement Care 3,000
Cruse Bereavement Care-Tees Valley & Durham 3,000
D2 Youth Zone Limited 15,000
Deaflink North East 10,000
Derwenthaugh Boat Station of the Sea Cadets Corps 4,000
Dry Water North East Ltd 15,000
Durham Agency Against Crime Limited 10,000
Durham Association of Boys & Girls Clubs 15,000

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

7. Analysis of grants to institutions (continued)
nalysis of grants to institutions (continued) 2021
£
Durham Scout County Council 10,000
East Durham Partnership Limited 15,000
EDGE NE CIC 10,000
Enabling Enterprise 6,000
ESCAPE Family Support Ltd 20,000
FareShare North East 10,000
Fenham Association of Residents 4,700
Foundation Futures CIO 4,500
Free The Way 5,000
Fulwell Community Library CIC 50,000
Gateshead Crossroads Caring for Carers 10,000
Gateshead Unit of the Sea Cadet Corps 4,000
Gosforth Unit 396 of the Sea Cadet Corps 4,000
Great North Air Ambulance Service 9,020
Greatham Sports Field Association 4,000
Groundwork North East 4,380
Hartlepool Foodbank CIO 5,000
Hartlepool People Limited 5,000
Hartlepool Stage Society 10,000
Hartlepool Unit 172 of the Sea Cadets Corps 4,000
Hebburn Unit 176 of the Sea Cadet Corps 4,000
Help, Education and Resources To Bring Everyone All Together 2,000
Hospitality and Hope 7,000
Huntington's Disease Association 3,000
IAH Charity Company Limited 3,000
If u Care Share Foundation 7,000
Inspire South Tyneside 5,000
International Community Organisation of Sunderland 3,000
Jarrow Unit 197 of the Sea Cadet Corps 4,000
Just Finance Foundation 5,000
KAYAKS 4,200
Keyfund Federation Limited 5,000
Kids Kabin 15,000
Live Music Now Limited 6,090
Love Amelia 15,000
Mortal Fools 5,000
NEPACS 5,000
Newburn and District Unit 247 of the Sea Cadet Corps 4,000
Newcastle Cathedral Trust 15,000
Newcastle East End FC 5,000
North Benwell Youth Project CIO 15,000
North Music Trust 7,000
North Music Trust 12,000
North Shields Unit 613 of the Sea Cadet Corps 4,000
North Tyneside Learning Trust 5,000
North Tyneside VODA 2,000
Northbourne Street Youth Initiative 15,000
Northern Ballet Limited 2,000
Northern Roots 5,000

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

7. Analysis of grants to institutions (continued)
nalysis of grants to institutions (continued) 2021
£
Northumberland National Park Mountain Rescue Team 2,000
Northumberland Wildlife Trust Limited 10,000
Northumbria Calvert Trust 50,000
Northumbria Coalition Against Crime Limited 5,000
NTC Touring Theatre Company Ltd 5,000
Nunsmoor Centre Trust 2,500
Oasis Aquila Housing 33,453
Oswin Projects 5,000
Panathlon Foundation 3,000
Parochial Church Council of Sugley Parish 5,000
Pennywell Neighbourhood Centre 5,000
People and Drugs Limited 5,000
Place2Be 7,000
Portico North CIC 5,000
Prudhoe Parochial Church Council 3,000
Prudhoe Youth Project 9,000
Queen Elizabeth Scholarship Trust 10,000
Queens Hall Arts 2,930
Radio Tyneside 6,000
Rainbow Foundation Sunderland 4,000
Refugees & Asylum Seekers Support Association (RASSA) 3,000
Salvation Army 6,000
Samaritans 3,000
Samaritans 3,000
Seaham Philharmonic Society 5,000
Seaham Unit 299 of the Sea Cadets Corps 4,000
Seaton Sluice Public Access Defibrillator Support Group 2,950
Silverline Memories CIO 5,000
Skills for People 6,000
Smile for Life Children's Charity 3,500
South Shields Unit 315 of the Sea Cadet Corps 4,000
St Anthony's Youth Education and Support 15,000
St Anthony of Padua Community Association 10,000
St Cuthbert's Three-Church Trail Group 3,700
St Martin's Centre Partnership 5,000
St Oswald's Hospice Limited 10,000
STAGS 3,000
Sunderland Amateur Boxing Club 3,500
The Association of Teesdale Day Clubs 5,000
The Bailiffgate Alnwick & District Museum 3,000
The Barnes Institute 7,850
The Bow Trust (Durham) Limited 2,000
The British Red Cross Society 6,000
The Community@NE66 Charitable Trust 10,000
The Country Trust 5,000
The Cranfield Trust 10,000
The Customs House 16,500
The Greggs Foundation 7,000
The Kepier Trust 3,000

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

7. Analysis of grants to institutions (continued)
nalysis of grants to institutions (continued)
The Lanchester Partnership
The National Society for the Prevention of Cruelty to Children
The National Youth Orchestra of Great Britain
The Natural History Society of Northumbria
The Newcastle Diocesan Board of Finance
The Prince's Trust
The Priory Of England and the Hospital Of St. John Of Jerusalem
The Twisting Ducks Theatre Company
The Viscount Ridley North of England Cadet Forces Trust
Tyne Rivers Trust
Tyneside and Northumberland Mind
Ulgham Village Cricket Club
University of Sunderland Development Trust
Veterans At Ease
Veterans in Crisis Sunderland
Voluntary Organisations' Network North East
Wallsend Boys Club
Wallsend Unit 345 of the Sea Cadet Corps
Wansbeck Centre for Voluntary Service
Washington Mind CIO
Wearside Women In Need
West End Women and Girls Centre
West Northumberland Community Buildings Consortium
Westgate Baptist Church, Newcastle upon Tyne
Wetheriggs Animal Rescue & Conservation Centre
Whitley Bay and District Unit 361 Sea Cadet Corps
Woodshed Workshop CIC
YHA (England and Wales)
YMCA North Tyneside
Grants under £1,001 (46 grants)
Grand Total - Grants to institutions		 2021
£
2,000
6,000
5,000
5,000
15,000
20,000
3,000
3,000
5,000
7,000
5,000
5,000
250,000
5,000
19,676
5,000
100,000
4,000
5,000
5,000
15,000
15,000
2,000
5,000
5,000
4,000
5,000
2,000
30,000
1,670,387
41,382
1,711,769

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

8. Analysis of grants by area

County Durham and Hartlepool
North East General
Northumberland
Tyne & Wear		 Number of
Grants
31
47
49
95
222		 2021
£
177,660
501,810
251,195
781,104
1,711,769		 2021
%
10
29
15
46
100		 2020
%
19
27
14
40
100

9. Analysis of grants by type

Arts and Culture
Community Issues/Events
Conservation/Environmental
Education/Training
Health/Sport and Human Services
Historic Buildings/Heritage
Homeless/Housing/Hardship
Public Services
Service Charities
Other		 Payment
count
19
5
9
22
80
24
5
28
16
14
222		 % of total
count
9
2
4
10
36
11
2
13
7
6
100		 Grant
funding
117,520
21,000
37,292
350,693
585,520
177,150
52,453
126,396
135,745
108,000
1,711,769		 % of total
amount
7
1
2
21
34
11
3
7
8
6
100

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

10. Number of applications received

Number of grants made under £1,001
Number of grants made over £1,001
Applications pending
Applications refused or lapsed		 2021
£
46
176
99
116
437		 2020
£
89
219
9
229
546

11. Analysis of expenditure on charitable activities

Summary by fund type

Payment of grants
Payment of grants		 Restricted
funds
2021
Unrestricted
funds
2021
£
£
487,453
1,485,795
Restricted
funds
2020
Unrestricted
funds
2020
£
£
146,800
1,685,506		 Total
funds
2021
£
1,973,248
Total
funds
2020
£
1,832,306

12. Analysis of expenditure by activities

Grant
funding of Support Total
activities costs funds
2021 2021 2021
£ £ £
Payment of grants 1,711,769 261,479 1,973,248

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

12. Analysis of expenditure by activities (continued)

Grant
funding of Support Total
activities costs funds
2020 2020 2020
£ £ £
Payment of grants 1,582,671 249,635 1,832,306

Analysis of support costs

Wages and salaries
Depreciation
Rent and rates
Insurance
Motor and travel
Printing and stationery
Postage
Telephone
IT Maintenance and repairs
Education and training
Subscriptions
Legal and professional fees
Bank charges
Governance costs
Sundry expenses		 Payment of
grants
2021
£
119,696
1,203
30,927
4,827
311
-
78
1,698
15,431
8,236
-
62,397
138
16,400
137
261,479		 Total
funds
2021
£
119,696
1,203
30,927
4,827
311
-
78
1,698
15,431
8,236
-
62,397
138
16,400
137
261,479		 Total
funds
2020
£
122,582
1,394
30,304
4,191
2,271
512
263
1,838
18,051
458
1,624
49,719
568
15,814
46
249,635

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

13. Governance costs

Governance costs included within support costs above are as set out below.

Auditor's remuneration
Trustees meeting costs		 2021
£
16,328
72
16,400		 2020
£
15,450
364
15,814

14. Auditor's remuneration

The auditor's remuneration amounts to an auditor fee of £13,340 excluding VAT ( 2020 - £12,875 ).

15. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2021
£
111,434
4,744
3,518
119,696		 2020
£
101,419
8,614
12,549
122,582

During the year, a termination payment of £30,000 (2020 - £Nil) was paid to a departing employee following a restructuring exercise. The cost is included within wages and salaries.

The average number of persons employed by the charity during the year was as follows:

Support
Administration		 2021
No.
1
1
2		 2020
No.
1
1
2

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

15. Staff costs (continued)

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2021 2020
No. No.
In the band £60,001 - £70,000 - 1

Pension contributions of £Nil (2020 - £6,767) to a money purchase scheme were payable in respect of the higher paid employee.

There are two members of staff excluding the trustees, without whom the charity could not continue to operate. Accordingly key management remuneration is the total staff remuneration as disclosed above.

16. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL) .

During the year, no Trustee expenses have been incurred (2020 - £NIL) .

17. Tangible fixed assets

Cost or valuation
At 1 April 2020
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Fixtures and
fittings
£
11,621
11,621
11,071
75
11,146
475
550		 Office
equipment
£
54,439
54,439
50,683
1,128
51,811
2,628
3,756		 Total
£
66,060
66,060
61,754
1,203
62,957
3,103
4,306

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

18. Fixed asset investments

Cost or valuation
At 1 April 2020
Additions
Disposals
Revaluations
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020
19.
Debtors
Due within one year
Other debtors
Prepayments and accrued income
20.
Creditors: Amounts falling due within one year
Other taxation and social security
Other creditors -grants payable
Accruals and deferred income		 Listed
investments
£
47,839,169
11,893,410
(11,559,675)
11,820,072
59,992,976
59,992,976
47,839,169		 Cash held
for
investment
£
2,270,544
(487,138)
-
7,935
1,791,341
1,791,341
2,270,544
2021
£
6,394
138,600
144,994
2021
£
2,697
-
90,877
93,574		 Total
£
50,109,713
11,406,272
(11,559,675)
11,828,007
61,784,317
61,784,317
50,109,713
2020
£
6,300
126,897
133,197
2020
£
5,528
14,500
68,671
88,699

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

21. Financial instruments

2021 2020
£ £
Financial assets
Financial assets measured at fair value through income and expenditure 59,992,976 47,839,169

Financial assets measured at fair value through income and expenditure comprise listed investments.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

22. Statement of funds

Statement of funds - current year

Unrestricted funds
General Funds
Endowment funds
Endowment Funds
Restricted funds
Sea Cadets Grant
Samares Grants reimbursed
Total of funds		 Balance at 1
April 2020
£
44,170,889
7,268,290
-
-
-
51,439,179		 Income
£
1,470,782
-
56,000
431,453
487,453
1,958,235		 Expenditure
£
(1,671,658)
-
(56,000)
(431,453)
(487,453)
(2,159,111)		 Gains/
(Losses)
£
10,156,725
1,671,282
-
-
-
11,828,007		 Balance at
31 March
2021
£
54,126,738
8,939,572
-
-
-
63,066,310

The Endowment Fund arose on the creation of the trust, being the capital element of monies transferred from the Sir James Knott 1920 Settlement. The Trustees are restricted to only distributing the income arising from this fund.

On 1 April 1993 the investments representing the Sir James Knott 1920 Settlement were transferred to the main fund at market value.

Each year an amount reflecting the gains earned by the main fund on the investments representing the Sir James Knott 1920 Settlement is allocated to the endowment fund.

Restricted Funds

Sea Cadets Grant - A grant was received from Samares Investments Limited for the purpose of paying grants to branches of Sea Cadets in the North East. Fourteen grants totalling £56,000 were made during the year.

Samares Grants reimbursed - During the year, Samares Investments Limited reimbursed the Trust in relation to grants of £431,453 made on their behalf to: Newcastle Youth Initiative £55,000, Prince's Trust £10,000, St Oswald's Hospice £10,000, Durham Scouts £10,000, Sunderland University £125,000, Artichoke £5,000, High Sheriff Tyne & Wear £10,000, High Sheriff Northumberland £10,000, Wallsend Boys Club £100,000, YMCA North Tyneside £30,000, CAB Gateshead £26,000, If U Care Share £7,000 and Oasis Community Housing £33,453.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

22. Statement of funds (continued)

Statement of funds - prior year

Balance at
Balance at Gains/ 31 March
1 April 2019 Income Expenditure (Losses) 2020
£ £ £ £ £
General Funds 47,636,125 1,832,666 (1,919,893) (3,378,009) 44,170,889
Endowment funds
Endowment Funds 7,823,044 - - (554,754) 7,268,290
Restricted funds
Sea Cadets Grant - 56,000 (56,000) - -
Samares Grants reimbursed - 90,800 (90,800) - -
- 146,800 (146,800) - -
Total of funds 55,459,169 1,979,466 (2,066,693) (3,932,763) 51,439,179
Summary of funds
Summary of funds - current year
Balance at
Balance at 1 Gains/ 31 March
April 2020 Income Expenditure (Losses) 2021
£ £ £ £ £
General funds 44,170,889 1,470,782 (1,671,658) 10,156,725 54,126,738
Endowment funds 7,268,290 - - 1,671,282 8,939,572
Restricted funds - 487,453 (487,453) - -
51,439,179 1,958,235 (2,159,111) 11,828,007 63,066,310

23. Summary of funds Summary of funds - current year

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

23. Summary of funds (continued)

Summary of funds - prior year

General funds
Endowment funds
Restricted funds		 Balance at
1 April 2019
£
47,636,125
7,823,044
-
55,459,169		 Income
£
1,832,666
-
146,800
1,979,466		 Expenditure
£
(1,919,893)
-
(146,800)
(2,066,693)		 Gains/
(Losses)
£
(3,378,009)
(554,754)
-
(3,932,763)		 Balance at
31 March
2020
£
44,170,889
7,268,290
-
51,439,179

24. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Total
Analysis of net assets between funds - prior year
Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Total		 Endowment
funds
2021
Unrestricted
funds
2021
£
£
-
3,103
8,939,572
52,844,745
-
1,372,464
-
(93,574)
8,939,572
54,126,738
Endowment
funds
2020
Unrestricted
funds
2020
£
£
-
4,306
7,268,290
42,841,423
-
1,413,859
-
(88,699)
7,268,290
44,170,889		 Total
funds
2021
£
3,103
61,784,317
1,372,464
(93,574)
63,066,310
Total
funds
2020
£
4,306
50,109,713
1,413,859
(88,699)
51,439,179

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DocuSign Envelope ID: 1F0B5447-6964-4FB3-9645-F76824A06A46

SIR JAMES KNOTT TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

25. Reconciliation of net movement in funds to net cash flow from operating activities

Net income/expenditure for the year (as per Statement
Activities)
Adjustments for:
Depreciation charges
(Gains) / Losses on investments
Dividends, interest from investments
(Increase) / Decrease in debtors
Increase / (Decrease) in creditors
Investment management costs
Net cash used in operating activities
26.
Analysis of cash and cash equivalents
Cash in current and short term deposit accounts
Total cash and cash equivalents
27.
Analysis of changes in net debt
Cash at bank and in hand		 of Financial
At 1 April
2020
£
1,280,662
1,280,662		 2021
£
11,627,131
1,203
(11,828,007)
(1,453,626)
528
(12,186)
170,464
(1,494,493)
2021
£
1,227,470
1,227,470
Cash flows
£
(53,192)
(53,192)		 2020
£
(4,019,990)
1,394
3,932,763
(1,825,666)
329,170
(16,367)
237,824
(1,360,872)
2020
£
1,280,662
1,280,662
At 31 March
2021
£
1,227,470
1,227,470

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DocuSign Envelope ID: 1F0B5447-6964-4FB3-9645-F76824A06A46

SIR JAMES KNOTT TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

28. Grant commitments

At 31 March 2021 the charity had commitments as follows:
Commitments in respect of grants approved for projects which have not
been accrued in the financial statements but will form part of grants:
Payable next year
Payable in 2 years
Payable in 3 years		 2021
£
424,200
124,000
7,000
555,200		 2020
£
523,500
351,000
26,000
900,500

The charity has received a commitment from Samares Investments Limited to fund £187,500 of these future payments (2020 - £237,000).

29. Pension commitments

The charity operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £3,518 (2020 - £12,549). Contributions totalling £50 were repayable to the fund (2020 - £1,347 repayable) at the balance sheet date and are included in creditors.

30. Operating lease commitments

At 31 March 2021 the charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:

2021 2020
£ £
Amounts payable:
Within 1 year 15,120 17,640

31. Related party transactions

Samares Investments Limited is a philanthropic organisation with historical links to this Trust, based in Jersey. Note 22 sets out details of grants received by the Sir James Knott Trust from Samares Investments Limited in respect of payments to be made for charitable purposes in the North East. There were no amounts outstanding from Samares Investments Limited at the year end (2020 - £Nil).

The Trust made grants to other charities with which Trustees have an association totalling £5,000 (2020 - £5,000).

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