2023-03-31-accounts - The Ernest Kleinwort Charitable Trust

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Trustees		T Chandos (Chairman)	T Chandos (Chairman)	T Chandos (Chairman)
		A Kleinwort
		M Kleinwort
		Sir R Kleinwort	Bt
		C Mayhew MBE
		E Limerick
Charity number		1197205
Principal address		One Bell Lane
		Lewes
		East Sussex
		BN7 1JU
Director		Sally Case
Administrator		Andrina Murrell
Auditor		Knill James LLP
		One Bell Lane
		Lewes
		East Sussex
		BN7 1JU
Bankers		Barclays Plc
		1 Church Road
		Burgess Hill
		West Sussex
		RH15 9 BD
Solicitors		Gaby Hardwicke
		33The Avenue
		Eastbourne
		East Sussex
		BN21 3YD
Investment	advisors	Veritas Investment		Partners	(UK)
		Limited
		Riverside House
		2a Southwark	Bridge Road
		London
		SE1 9HA
		United Kingdom

		Page
Trustees' report		1-6
Statement oftrustees'	responsibilities
Independent auditor's	report	8-10
Statement of financial	activities	11 - 12
Balance sheet		13
Statement ofcash flows		14
Notes to the financial	statements	15-22

		Risk Identified	Risk Identified	Risk Identified					Action taken to mitigate the risk
Investments	do not deliver		sufficient			return/drop		in	The Trustees have appointed Asset Risk
value									Consultants (UK) Ltd to report and advise on the
									performance ofthe investment managers. Advice is
									provided to a formally constituted Investment Sub-
									Committee ofTrustees which meets twice per year.
									Investment managers are provided with an
									Investment Policy Statement setting out the
									Investment Objectives ofthe charity, which is
									regularly reviewed.
									The Trustees have divided the investment of the
									endowment equally between three investment
									managers to provide resilience against poor
									performance and to optimise the return from the
									endowment.
									The Trustees have implemented an extraction policy
									ith effect from 30th September 2018based on a
									total returns approach to provide stability in grant
									making and reflect their general aim of maintaining
									the real value ofthe endowment.
									In 2022 the Trustees agreed to maintain the rate of
									extraction at an absolute value to protect grant
									making from market volatility; part way through the
									year extraction was moved from the investment
									funds to the cash buffer fund held in the non-
									discretionary account as a result of market
									conditions.
pplicants	do not demonstrate			sufficient			financial		The Trustees employ a Director to conduct a robust
need for the funds		applied	for. Applicants				are		review of all grant applications before passing them
financially	insecure	and donated		funds are put at					on to the relevant Trustees for a decision. The
risk.									review includes scrutiny ofthe applicant charity, its
									role, governance, tinancial position and operations,
									and where necessary a meeting or visit often with
									EKCTTrustees present.
									Applications are divided into categories and Trustees
									with specific skills, experience and interest in each
									area review applications before making
									recommendations to the relevant meeting of
									Trustees.
Funds are	not applied as Trustees				intended.				II applicants are required to report back on the
									expenditure offunds.

Current financial	year
			Unrestricted	Endowment	Total	Total
			funds	funds
			2023	2023	2023	2022
		Notes				E
~lncom from:
Investments			646,319		646,319	651,306
enditure on:
Raising funds				388,333	388,333	320,608
Charitable activities		4	1,869,430		1,869,430	1,791,607
Total expenditure			1,869,430	388,333	2,257,763	2,112,215
Net gains/(losses)	on investments			(1,858,417)	(1,858,417)	4,865,396
Net (outgoing)/incoming		resources before transfers	(1,223,111)	(2,246,750)	(3,469,861)	3,404,487
Gross transfers between		funds	2,433,795	(2,433,795)
Net incoming/(outgoing)		resources	1,210,684	(4,680,545)	(3,469,861)	3,404,487
Other recognised	gains	and losses
Other gains or losses				(40,770)	(40,770)	(19,705)
Net movement in	funds		1,210,684	(4,721,315)	(3,510,631)	3,384,782
Fund balances at 1 April		2022	1,528,969	72,983,040	74,512,009	71,127,227
Fund balances at	31 March 2023		2,739,653	68,261,725	71,001,378	74,512,009

						Unrestricted	Endowment	Total
						funds	funds
						2022	2022	2022
					Notes		E
~ln m from:
Investments						651,306		651,306
'
n re on:
Raising funds							320,608	320,608
Charitable activities						1,791,607		1,791,607
Total expenditure						1,791,607	320,608	2,112,215
Net gains/(losses)		on investments					4,865,396	4,865,396
Net (outgoing)/incoming			resources	before transfers		(1,140,301)	4,544,788	3,404,487
Gross transfers	between		funds			2,059,365	(2,059,365)
Net incoming/(outgoing)			resources			919,064	2,485,423	3,404,487
Other recognised		gains	and losses
Other gains or	losses						(19,705)	(19,705)
Net movement	in	funds				919,064	2,465,718	3,384,782
Fund balances	at 1 April		2021			609,905	70,517,322	71,127,227
Fund balances	at	31 March 2022				1,528,969	72,983,040	74,512,009

			2023
		Notes
Fixed assets
investments			69,702,096		73,020,030
Current assets
Debtors		13	72,556	77,275
Cash at bank and in	hand		1,448,050	1,441,521
			1,520,606	1,518,796
Creditors: amounts	falling due within
one year		15	(221,324)	(26,817)
Net current assets			1,299,282		1,491,979
Total assets less current gabilities			71,001,378		74,512,009
Capital funds
Endowment funds -	general		68,261,725		72,983,040
income funds
Unrestricted funds			2,739,653		1,528,969
			71,001,378		74,512,009

				2023	2022
			Notes	E	f
Cash flows from operating		activities
Cash absorbed by operations			18	(2,270,900)		(2,222,658)
Investing activities
Transfer to cash and cash equivalents					748,860
Adjustrment to investment value brought			forward		241
Purchase ofother investments				(15,783,429)	(18,799,029)
Proceeds from disposal ofother investments				14,892,197	22,169,501
Investment income received				646,319	651,306
Net cash (used in)/generated		from
investing activities				(244,913)		4,770,879
Net cash used in financing		activities
Net {decrease)/increase in	cash and cash
equivalents				(2,515,813)		2,548,221
Cash and cash equivalents	at beginning		ofyear	7,771,685		5,223,464
Cash and cash equivalents		at end of	year	5,255,872		7,771,685
Relating to:
Cash at bank and in hand				1,448,050		1,441,521
Short term deposits included		in current	asset
investments				3,979,415		6,330,164
Bank overdrafts included in	creditors payable
within one year				(171,593)

					Unrestricted	Unrestricted
					funds	funds
					2023	2022
						F
Income	from	UK	Listed	Securities	646,319	651,306

		Endowment	Endowment
		funds	funds
		general	general
		2023	2022
		F	F
Investment	management	388,333	320,608
		388,333	320,608

				Charitable	Charitable
				Expenditure	Expenditure
				2023	2022
					F
Grant	funding	of activities (see note 5)		1,738,890	1,657,585
Share	of support costs (see note 6)			106,383	104,994
Share	ofgovernance		costs (see note 6)	24,157	29,028
				1,869,430	1,791,607

			Charitable	Charitable
			Expenditure	Expenditure
			2023	2022
Grants	to	institutions:
Other			1,738,890	1,657,585

Support	cost	s
			Support	Governance	2023	Support costs	Governance	2022
			costs	costs			costs
				E			F
Staff costs			99,323		99,323	93,388		93,388
Miscellaneous		support
costs			238		238	6,630		6,630
Payroll costs			633		633	469		469
IT Project			3,346		3,346	2,109		2,109
Other			2,843		2,843	2,398		2,398
Audit fees				13,613	13,613		12,900	12,900
Legal and	professional			4,926	4,926		9,183	9,183
Bank fees				304	304		2,066	2,066
ACF Membership				3,157	3,157		3,009	3,009
Trustees	indemnity
insurance				2,157	2,157		1,870	1,870
			106,383	24,157	130,540	104,994	29,028	134,022
Analysed	between
Charitable	activities		106,383	24,157	130,540	104,994	29,028	134,022

The average monthly number ofemployees during the y	ear was:
	2023	2022
	Number	Number
Finance and administration
Employment costs	2023	2022
Wages and salaries	87,474	82,121
Social security costs	5,058	4,892
Other pension costs	6,791	6,375
	99,323	93,388

The number	ofemployees	ofemployees
is as follows:
			2023	2022
			Number	Number
In the band	670,001 - F80,000
Net gains/(losses)		on investments
			Endowment	Endowment
			funds	funds
			general	general
			2023	2022
				E
Revaluation	of investments		(1,294,627)	4,428,348
Gain/(loss)	on sale	of investments	(563,790)	437,048
			(1,858,417)	4,865,396

			Endowment	Endowment
			funds	funds
			general	general
			2023	2022
Foreign	exchange	gains	40,770	19,705

			Listed	Cash in	Total
			investments	porffolio
	Cost or valuation
	At 1 April 2022		66,689,866	6,330,164	73,020,030
	Additions		15,783,429		15,783,429
	Valuation changes		(1,895,629)		(1,895,629)
	Transfer to cash			(2,350,749)	(2,350,749)
	Disposals		(14,854,985)		(14,854,985)
	At 31 March 2023		65,722,681	3,979,415	69,702,096
	Carrying amount
	At 31 March 2023		65,722,681	3,979,415	69,702,096
	At 31 March 2022		66,689,866	6,330,164	73,020,030
13	Debtors
				2023	2022
	Amounts falling due	within one year:		E
	Prepayments and accrued income			72,556	77,275
14	Loans and overdrafts
				2023	2022
				f
	Bank overdrafts			171,593
	Payable within one year			171,593
15	Creditors: amounts	falling due within one year
				2023	2022
			Notes
	Bank overdrafts		14	171,593
	Other taxation and social security			55	55
	Trade creditors			30,864	3,562
	Other creditors			7,922	13,300
	Accruals and deferred	income		10,890	9,900
				221,324	26,817

Analysis of	net assets	between funds
		Unrestricted	Endowment	Total	Unrestricted	Endowment	Total
		funds	funds		funds	funds
		2023	2023		2022	2022	2022
			E
Fund balances at 31
March 2023	are
represented	by:
Investments			69,702,096	69,702,096		73,020,030	73,020,030
Current assets/(liabilities)		2,739,653	(1,440,371)	1,299,282	1,528,969	(36,990)	1,491,979
		2,739,653	68,261,725	71,001,378	1,528,969	72,983,040	74,512,009


18	Cash generated from	operatio	ns			2023	2022
							E
	(Deficit)/surpus for the	year				(3,469,861)	3,404,487
	Adjustments for:
	Investment income recognised		in statement	offinancial	activities	(646,319)	(651,306)
	Foreign exchange differences					(40,770)	(19,705)
	Loss/(gain) on disposal	of investments				563,790	(437,048)
	Fair value gains and losses on		investments			1,294,627	(4,428,348)
	Movements in working	capital:
	Decrease in debtors					4,719	209,869
	Increase/(decrease) in	creditors				22,914	(300,607)
	Cash absorbed by operations					(2,270,900)	(2,222,658)
19	Analysis ofchanges	in net funds