THE TOLKIEN TRUST FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 INDEX Pag8 1-5 Truslees, Report Independent Auditors, Report Slalemenl of Financial Activities Balance Sheet Slalemenl of Cash Flows Notes lo the Financial statements 10 11 12 1&19 Charity Comrnlsslon Reference No. 1150801 Company No. 8354834 THE TOLKIEN TRUST TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 REFERENCE AND ADMINISTRATIVE DEfAILS Charity registration no 1150801 Company regl$tration no 8354834 Regislere(l Office Prama House 267 Banbury Road Oxford OX2 7HT Trustees Priscilla Mary Anne Reuel Tolkian Baillie Jean Tolkien Michael George Reuel Tolkien Simon Mario Reuel Tolkien lappoinled 18 D￿rnber 20201 Calhleen Blackbum Company Secretary Solicitors Maier Blackbum LLP Prama House 267 Banbury Road Oxford OX2 7HT Auditors Cntchleys Audit LLP Beaver House 23-38 HY1￿ Bridge Street Oxford OX12EP Investment Managers Investe¢ Wealth & Inveslment 30 Gresham Street Londo EC2V 7QN Bankers Lloyds Bank pl¢ Oxlord STRUCTURE, GOVERNANCE AND MANAGEMENT The Tolkien Trust is a Charitable company and was In￿rpOrated uThJer Ihe Companies Act on 10 January 2013. Ils predecessor unincorporated charity, also named The Tolkien Tnjsl, was established by a Declaration of Trust on 1 April 1977. On 12 April 2013 the unin¢Orp￿￿ed chanty transferred all of its assets, liabilities and ongoing activities lo the charitable company. The constitution of the charitable company establishes the temis on whi¢h Trustees are appointed and exercise their powers. New Trustees are given guidance on their legal responsibilities as charity trustees, and all Trustees are kept uplo4ate with relevanl legal developments and Charity Commission guidance. The TnJstees make all strategic d￿lSIonS relating to the charity. induding decisions as to whom grants should be paid. THE TOLKIEN TRUST TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 OBJECTS AND ACTIVITIES FOR THE PUBLIC BENEFIT The objects of the Trust are to benefit such charitable inslilutions or purposes as the Trustees from lime lo time think fil. Ac¢ordingly, the Trust operates for the public benefit. The TnJslee$ have complied with their duty under section 1715) of the Charities Act 2011 to have due regard to public benefit guhlance p￿blIShed by the Charity Commission. GRANT-MAKING POLICY The Trust makes donations annually lo a wide range of ¢harili8s and charitabl8 causes. but with a recurrent emphasis upon those aimed al alleviating wverty and social. educational and healthcare disadvantage, as well as those focusing on environmental concems and the arts. Charit￿S and causes are selected by the Trusleos in their discretion on the basis of research undertaken on their behalf and. in tho case of existing beneficiaries, the Tru$lee5' assessment of the use made of grants previously given. Though many of Ir)e charities receiving grants are based in the United Kingdom. the funds giv8n are éxpended on charilable work both at home and abroad, including in Uganda, Rwanda, the Democratic Republi¢ of Congo and the Middle East and, more recently, ELbrope (for assistance lo refugees fleeing conflict zones). A5 a solely granl-making charity, the Trust's emphasis is on focused and effective giving. Recipients of grants are therefore required lo undergo monitoring and evaluation. whi¢h involves them in providing reports lo the Trust on how their grant$ have been used and, in ¢ertain cases. meeting with the Trusl8es' represenlalives lo discuss their achievements. The TnJsl llow gwes lo fewer charities Ihan previously but, where appropriate, aims lo build closer relationships with beneficiaries with a view lo maximising the impact of its giving. In some instances, the Trust makes grants which are conditional upon the raising of matched lunding, enabling the charllies concerned lo leverage the Tnjst's conlribulions in ￿der lo increa$e their supporter base and income. The Trust may also challenge ¢harilies lo idenlfy the actions which would enable them lo develop and grow, such as appoinling a key member of staff or cwaling a new website enabling greater online engagement and donations, and help to fund these actions. Further detaS1s can be found on the Trust's website at w¥￿¥.tOlkIentrust.wJ. ACHIEVEMENTS AND PERFORMANCE Dunng the year the Tnjst made dislribullons from incomè lo 67 charIt￿S. PLANS FOR FUTURE PERIODS The Trust plans lo continue to work wilh a limited number of charities, developing and consolidating ils current strategy, and modfying ils approach rf current monitoring pr8ctiwJ suggesl that inueased impact can be achieved. FINANCIAL REVIEW The Trust's chief assets consist of copyrights in certain works by J R R Tolkien. which provide royalty income, and cash and investments. The Trust does nol engage in fun(J-raising. The Trust has no restricted funds and no endowment. For the year royalty In￿Me was £5.377.136 {2019.' £4.355.762) and the charity awarded grants totalling £3,530,45312019'. £3,367,693). Further details are induded in the statement of finan¢ial activities and related notes below. THE TOLKIEN TRUST TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 PRINCIPAL RISKS AND UNCERTAINTIES The principal risks and uncertainties affecting the Trust arise from its ownership of copyright assets. It is necessary from time lo time lo engage in legal action to defend these assets or to ensure that the Trust receives appropriate value from them, which can increase the operating ￿$¢S of ihe Trust. The income earned from these assets may also flucluale from year lo year. often lo a signfficanl exlenl. The Trust deals with these risks and uncertainties by adding to nel income from its reserves in order lo ty lo achieve a consislenl level of annual grant expenditure. {11 should be noted, however. that this consistency is not always apparent when comparing the level of grant expendilure from year to year, given that grants to be paid out over a term of years are accounted for in full in the financial year in which they are initially agreed. Grants payable over 2 term of years 81so require the maintenance of sufficient reserves to enable the Trust lo honour fvlure grant commilmenls.) INVESTMENT POLICY The Trust has engaged professional investment managers lo adminisler ils inveslmènls. These consist of a portfolio of equities, fixed interest securities. unil trusts and other instruments invested to provide both income and capital appreciation. The return is measured on a total return basis. No individual investment exceeds 100/0 of the portfolio. No investments are made in derivatives. The Trust follow5 an ethical investment policy and does not inve$1 in tobacco companies. companies whose main business Is the manufacture of armaments or in companles providing gambling services. INVESTMENT PERFORMANCE The Trust has agreed an Investment performance benchmath wllh its investment managers based on the Trustees, need lo build capltal lo fund Iheir grant making,. their attitude lo investment ri$k,' and the timeframe for investment. These three factors determine an appropriate asset allocation and thu$ a benchmark against which the investment managers, performance can be assessed. During 2017 the Trustees agreed 8 benchmark with their investment managers which was amended lo a "bespoke" benchmark, after discussion with and advice from their investment managers. The agreed benchmark is.. 120h of the return of the FTA British Government All Stocks Index.. 52Yo of the FTSE Al Share Index.. 25% of the FTSE Worl¢ EX-UK Index-, 50A of the IPD Monthly Propety Index,. and Swo of the "cash return +2•A" against which the allernalive investments (currently infraslruclure fvnd investment) is measured- and 1 % cash. There are agreed limitations as lo the minimum and maximum amounts of each asset dass that can be held. The Investment managers deem a "Medium/High" risk approach suitable gNen the Trust's circumslances with a restriction to a maxlmum of 82.5¥0 In equilies.. UK and ex-UK combined. The Trustees understand that over the long term this agreed fomial will allow the Capital value of the portfolio lo be al least retained in real temis and will generate a good level of income which over the medium term is a major conlribulor lo the lolal returns generated from an equity4ominant portfolio. The Trustees also understand that investments do not move in a linear fashion and there will be years and periods perhaps longer than a year when the portfolio value may fall. However. they also understand that, based on historical returns. equity investment is necessary rf the value of both the c8Prtal of tho fund and income is lo maintain its purchasing power when comparod with inflation. The 12 months to 31 December 2020 saw the portfolio making a reasonable return bul the number alone 1+6.00/0 total return} belies 8 background that featured one of the most extraordinary events in modern history. As is well known a highly infectious virus a SARS-type Isevere acute respiratory syndrome} disease originating in Wuhan, China quickly spread globally (from Febnjary 20201 and such was ils virulence that most governments worldwide issued orders banning public galherings, and effectively shutting down a large proportion of the wodd's businesses in order to prol&t their populations from this virulent. life-threatening and often lothal infection THE TOLKIEN TRUST TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 INVESTMENT PERFORMANCE {contlnuod) Interest rates were cul to zero,- govemmenls in the Westem wodd lavished mammoth amounts of cash on their populations lo support them - the allemalive being penury for those many. many people working in any area subjecl lo the uncertainties of discretionary spending such as aidines, bars, cinemas. cruise lines. holiday companies, dentists, hairdressers, hotels, leisure, pubs. restaurants, Ihealres, passenger transport and non- essential shopping. In this environment it was broadly only the pharmaceutical companies. food retailers and major household goods manufacturers that could be sure of a continuing market for their go(Kls. Reacting lo these events stock markets globally collapsed wilh all major equity indices falling by almost exactly a third be￿een mid-February and the third week of March. As soon as investors had a beller idea of what they were dealing with equity markels steadied and made a faltering recovery bul not until after some months of huge uncertainly as companies globally assessed their business prosp8¢1s with many halting the paymen15 of dividends and only a comparalive few able lo maintain their dNidend paY￿ul$. As lime has passed since many companies have returned lo the dividend lists bul the future is slill uncertain. Al the lime of writing, new varlants of the viru5 appear and many countries are still subject lo lockd¢)wns curtailing th& movement of Iheir populations, and this despite the global twL in places, patchy rollvout of the many va￿lneS that have been developed in record limes. Stock mark8ts though have regained their poise because stock markets are always lorward-looking. Investors broadly see a company s last year's results as history.. il is a company's future earnings and improving prospects that is the reason share prices move up. So, with interest rates still al all-lime lcyws il is stock market5 where there is industrial re￿Very and growlh, and the prospect of div￿endS - that relain appeal for long- term investors. The Tolkien Trust's investmen15 recorded a total return of +6.0 % for calendar 2020 compared lo the benchmark's return of ￿.5•fi- the positive drfference emanating from the Trust's large and well-focussed investments in Overseas equities with the USA exposure and lechnology company exposure in partlcular responsible for the outperformance of the benchmark. The three year cumulative performance shows a total return of +22.1% compared lo the benchmark'5 +10.4%. The Trustees monitor the performance of their nveslmenl managers carefully and are satisfied with the currenl arrangements. RESERVES POLICY The Trust maintains a general reseTV8. the balance on which as at 31 December 2020 was £36,091,705 {2019.' £33,341,247). Reserves are held lo enable the Trust lo smooth out the fluctuations in ils net income from year to year and thus lo maintain a subslanlial level of annual grant expendilure over the longer term,. lo meet future grant commitments where grants are payable over a number ofyears.. and lo sland ready lo defend its copyright interests whenever these come under threat. THE TOLKIEN TRUST TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 TRUSTEES, RESPONSIBILMES The Trustees (who are also directors of The Tolkien Trust for the purposes of company lawl are responsible for preparing the Trustees, Report and the financial stslements in accordance with appI￿able law and United Kingdom Accounting Standards including Financial Reporting Standard 102 The Financial Reporting Standard 8pplicab16 in the UK and Republic of Ireland Iunited Kirodom Generally Accepted Accounting Practice). Under company law the Trustees musl not approve the financial statements unless they are satisfied that they glve a true and fair view of the stsle of affairs of Ihe charity and of the surplus or defi¢il of the charity for that year. In preparing these financial stalements. Ihe Trustees are required lo.. Select suitable accounting polioles and then apply them ¢onsistenUy.' Observe the methods and principles in the Charities SORP Make judgements and estimates thal are reasonable and prudent,. Stale whether applicable UK Accounting Standards have been followed, subject to any material departures disclos￿ and explained in the financial stalemenls. and Prepare the financial slalemenls on the going ¢onC￿n basis unless il is inapproprfale to presume that the company will continue in business. The Trustees are responsible for keeping proper accounllng records that aTr sufficient to show and explaln the Trust's transactions and disclose with reasonable accura¢y at any lime the financial p0511ion of the company and enable them lo ensure that the financial statements I￿pIY with the Companies Act 2006. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable sl8ps for the prevention and detection of fraud and other irregularities. So far a$ the Trustees are aware. there 18 no relevant audll information of whth th8 company's auditors are unaware, and each Tnjstee has taken all the steps that he or she ought lo have taken as a dlreclor in order lo make himself or herself aware of any relevant audit information and lo establish that the company'5 auditors are aware of that infornialion. This report also includes a directors. report as required by company law. The report has been prepared in accordance wilh the Small Companies Regime under Section 419{2) of the Companies Act 2006. On b8haW of the Trustees P M A R Tolklen (Trusteg) INDEPENDENT AUDITORS. REPORT TO THE TRUSTEES OF THE TOLKIEN TRUST FOR THE YEAR ENDED 31 DECEMBER 2020 Oplnion We have audited the financlal stalemenls of The Tolkien Trust {the'charitable wmpany) for the year ended 31 December 2020 which comprise the $latemenl of financial activities. balance sheet , slatemenl of eash flows and notes lo the financial slalemenls. 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 A¢countsng Pra¢licel. In our opinlon the financial statements-. give a true and fair view of the stalo of the charitable o)mpany's affalrs as at 31 Decemb8r 2020, and of ils income and expendtture, for the year then ended: have been propedy prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Charities Act 20,1 8as18 for oplnlon We conducted our audll in accordance with Intemalional Standards on Auditing {UK) (ISAS {UKII and applicable law. Our respoDsibililies under those standards are further described in the 'Audilors' responsibilities for the audit of the financial sl8temenls' section of our report. We are independent of the charllable company In accordan¢e with the ethical reouiremenls that are Televanl lo our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fU￿1118d our other ethical responsibilities in accordance with these requirements. We believe Ihal Ihe audit evidence wé have obtained 15 sufficient and approprlale lo provide a basss for our opinion. Concluslons rolatlng to golng ¢on¢om In auditing th6 financial Slalements. we have conduded that the trustees, use of the going concern basis of accounting in the preparation of the fInar￿la1 slalements is approFyiale. Based on the work we have performed, we have not idenirfied any material uncertainties relating to events or conditions that, individually or collectively, may cast signrficanl d￿bI on the charitable company's ability lo continue as a going concern for a period of al least 12 monlhs from when the financial slalemenls are aulhorised for issue. Our re5ponsibililies and the responsibilities of the Irustees with respect lo going con¢ern are described in the relevant 8eclton$ of this report. Other Infomiatlon Our responsibilty is to read the other infomiallon and, in doing so. consider whether the other information is materially inconsislenl with the financial slalements or our knowledge obtained in Ihe course of the audit, or otherwise appears lo be materially misslaled.11 we idenlify such material inconsistencies or apparent material misslatemenls, we are required to delemiine whether this gNes rise to a material misstalement in the financial slalemenls themselves. If, based on the work we have performed. we condude that there is 2 material misslatemenl of this other irrformation. we are required to ￿port that fact. We have nothing to report in this regard. INDEPENDENT AUDITORS, REPORT TO THE TRusfEES OF THE TOLKIEN TRUS[ FOR THE YEAR ENDED 310ECEMBER 2020 (Con￿Trued) Oplnlons on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audrt: the information gwen in the Iruslees. report. which indudes the directors. report prepared for the purposes of company law, for the financial year for whi¢h the financial statements are prepared is consistent with the financial slal8menls', and the directors. report included within the trustees. rewt has been prepared in attordance with applicable legal requirements. Matters on whlch we are requlrgd to rèport by ex¢oPtlon In the light of the knowledge and understanding of the charitable company and Ils environment oblalned in the Course of the audit, we have not Identified material misstatements in the Iruslees, report. We have nothing to report in respect of the following matters in relation to which the Companies A¢t 2006 require us lo report lo you rf, in our oplnlon: adequate and proper accounlirvJ records have not been kept. or rnlums adequate for our audit have not been received from branches not visited by us,. or the financial statements are not in agreement with Ihe accounting records and r8tums.' or certain disclosure$ of Iruslees. remuneration specrfied by law are not made,. or we have not received all the infomiation and explanations we require for our audit,. or the Iru51ees were not entitled lo prepare the financial statements in accordance with the small companies regime and lake advantage of the small ¢ompanies' exemptions in pyeparing the trustees, report and from the requirement lo prepare a slrateglc ￿port. R68ponslbllltle8 of tru8tee8 As explained more fully in the Iruslees. responsibilities stalemenl sel out on page 5, the Iruslees are ￿sponSible for the preparation of financial slalements and for being satisfied that they give a true and fair view, and for such internal conlrol as the Iruslees determine is necessary lo enable the preparation of financial statements that are free from material mi5Statemenl, whether due to fraud or error. In preparing the financial slalemenls. the Iruslees are responsible for assessing the charity's ability lo continue as 8 going concern, disclosing, as applicable. matters related lo going concern and using the going concern basis of accounting unless the trustees either intend lo liquidate the charity or to cease operations, or have no realistic allemative bul lo do so. INDEPENDENT AUDITORS. REPORT TO THE TRUSTEES OF THE TOLKIEN TRU FOR THE YEAR ENDED 31 DECEMBER 20201contlnuedl Audltors, responslbilitles for the audlt of the flnancial statgments Our objèctives are lo obtain reasonable assurance about whether the financial statements as a whole are fre8 from material misstatement. whether due lo fraud or error. and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, bul is nol a guarantee that an audit conducted in accordance with ISAS (UK) will always delecl 8 material mtsststemenl when il exists. Misslalemenls can arise from fraud or error and are considered materlal if. individually or in the aggregate, they could reasonably be expected to influence the econofflic dedsions of users taken on the basis of these finanGial stalemenls. Irregularities, Including fraud. are InStan￿S of non GRANTS TO INSTrruTIONS (contlnued) 2020 2019 Médecins du Monde Médecins Sans Frontières (Libywyemen) Neuro Therapy Centre New Bridge Foundation Operation Fistula Oxford Bach Choir Oxford Food Bank Oxford Lieder Festival Oxford Philharmonic Orchestra Oxford Playhouse Trust Oxford Sanctuary Housing Oxford Shakespeare Ensemble (Creation Theatre Company) Panzi Foundation Pesticide Action Ne￿rk UK Photography Oxford Piloles Volonlaires Primo Levi Centr8 Prism the Gift Fund (REFUAID) Prism the Gift Fund (The Hope Proje¢l) Prism the Gift Fund (Help Refugees) Prison Phoenix TnJ$l Prisoners Abroad The Porch Reading List Foundation Remodel (Haili Orphanage) Refugees at Home Reprieve Road lo Recovery San Marcos High School AAPLE Academy Sanctuary Hosting Schoolreaders Sellle Support Shelter Cymru Solidarilés International SOS Medilerranee Southampton and Winchester Visitors. Group Support a Survivor of Torture The Tablet Trust Tempus Novo Theatres Trust, The The Howard League for Penal Refomi TREAT (Trust for Research and Education on the Arms Trade) Uganda Childbirth Injury Fund Videre est Credere Wiener Library Working Chance 130,000 250.000 94,000 250.000 80,000 10,000 150,000 25,000 4W,000 25,000 20,000 10.000 15,000 20,000 70,000 217.302 10,000 15.000 25.000 20,000 10.0(J) 20,000 70.000 170.000 15,000 50,000 40,000 50.000 40.000 50,000 30,000 50,000 1¢)0,000 15.000 110,000 80,000 20,000 1S.000 88,000 20,000 20,000 {s,000} 40,000 95,000 20,000 25,000 40,000 95,01)0 30,000 25,453 15,000 20,000 40,000 30.000 130,000 25,000 20,000 40.000 15.000 30,000 84.108 100,000 50,000 20,000 35,000 20,000 80,000 10.000 40,000 70,000 30,000 30,000 20,000 120.000 30,000 30.000 15.000 Total 16 THE TOLKIEN TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 {CONTINUED} SUPPORT COSTS 2020 2019 UK legal fees relating to grant distribulion Other professional fees Governance Costs Inole 6) Other 10,866 191,659 66,150 10,227 191.513 49.079 612 GOVERNANCE COSTS 2020 2019 UK legal fees relating to adminislralion of Ihe Trust Auditors. remuneration- current year estimate Aijditors. remuneration- adjuslmenl in respect of prior year 61,575 7,000 39,974 8,890 21 No Iruslees were reimbursed Iravel and accommodatlon expenses in ellher year. No Iruslee received any remuneration in either year. COPYRIGHT ASSETS The charity'8 literary assets ￿Mpris&- Certaln US copyrights in The Lord of the Rlngs,. and the worfdwide copyrights in Smith of Wootton M8ior, Tree and Leaf, Rover8ndom, Mythopoeia. The Legend ol Suurd 8nd Gudrun. The Fall of Arthur and 8eowuM.. A Tr8nslalion and cornn￿n1ary, all by J R R Tolkien. The copyrights in the published editions of various philologi¢al writlngs and fragments by J R R Tolkien. Certaln unpublished papers, letters, artistic works, pictures, pholographs and olher documents originally forming part of the Eslale of J R R Tolkien, and the copyright in such materials formedy owned by the Eslale. INVESTMENTS Market Value blfwd Purchases In Year Sal98 In Year Chango In Market Value Market Value clfwd Equities Fixed Interest securitie$ 20,275.227 2 231443 22,506.670 4,208.033 (3.898,5571 100000 4,771.812 {3.998,557) 818,570 21,403,273 2 700 835 824,183 24,104,108 Cash held by illveslment managers 315215 17 THE TOLKIEN TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED) DEBTORS 2020 2019 Royalties re¢eivable VAT 2.147,145 2.393,550 10 CREDITORS: AMOUNTS FALLING DUE WtrHIN ONE YEAR 2020 2019 Grants awarded not yet paid (note 121 Accwals 270,000 115016 2.467,000 11 CREDrroRS: AMOUNTS FALLING DUE AFfER ONE YEAR 2020 2019 Grants awarded not yel paid Inole 12) THE TOLKIEN TRUST 18 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED) 12 GRANTS AWARDED NOT PAID At1 January 2020 At31 D#¢embèr 2020 Amounts Awardod Payments Made 2020 movoments University of Manitoba an Klass Memorial Fund Programme Bodleian Archivi$l B¢xJleian Curator of Medieval Manuscripts Cite Inlernalionale de la tapISser￿ Aubusson Awar(led 2019,. paid in 2020 Awarded and paid in 2020 Awarded December 2020., paid in 2021 270,CM)O 340,000 445.000 90.000 45,000 60,000 100.000 2,222,000 3,355,453 180,000 295,000 385,000 100,000 150.000 2.222,000 3,355,453 25 January 2019 At31 Da¢gmb8r 2019 Amounts Award•d Paymonts Made 2019 movemonts University of Maniloba Alan Klass Memorial Fund Programme Bodleian Archivist Bodleian Curator of Medieval Manuscripts Cite Inlernalionale de la lapisserie Aubusson Future Hope UK The Haili Orphanage Clinic Project Awarded 2018,. paid in 2019 Awarded and paid in 2019 Awarded December 2019.. paid in 2020 ts￿,000 45,000 60,000 50,000 32,947 270,000 340,000 445,000 50,000 385,000 S05,1￿0 100.000 32.947 5,000 2,028.851 (5,0001 2,028.851 1.150.693 1.150,693 2 222 000 Movement In recognlsed provl8Son$ and fundlng Gommitm•nts during the year Charltablg Charltable ¢ommltment8 commltments accrued a¢crued 2020 2019 Grant commitments recognised al the start of the year New grant commitments charged to the Statement of Financial Activities in the year (see note 3) Grants paid during the year Amount of grant commitments recognised as al 31 December 2020 3,327,000 3,416,798 3,530,453 587245 3,367.693 457 491 THE TOLKIEN TRUST 19 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED) 13 MEMBERS, LIABIL￿y AND CHARrrf INFORMATION The Tolkien Tnjst is a company limited by guarantee (incorwjraled in England and Wales) and does not have share capital. The members undertake to contribute a sum, not exceeding £10. to the assets of the company in the event ofihe company being wound up. Ils registered office Is Prama House, 267 Banbury Road, Oxford. OX2 7HT. 14 RECONCILIATION OF NET INCOMEI{EXPENDITURE)TO NET CASH FLOW FROM OPERATING ACTIVITIES 2020 2019 Nel income as per Sialement of Financial Activities Deduct investment income in investing aclivilies Decreasellincreasel in debtors IDecreaseyincrea$e in creditors Deduct gainsladd back losses on investments 2,750,458 1595,264} 248,229 12.329,7741 4.307,889 {819,994) 1573,8671 1121,1251 079 793 Nel cash used in operating activities 15 RELATED PARTY TRANSACTIONS There were no relatod parly transactions in the rerKJrting period Ihal require disclo$ure12019'. Nill.