Charity Registration No. 1197205 THE ERNEST KLEINWORT CHARITABLE TRUST ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THEYEAR ENDED 31 MARCH 2024 BUSINESS ADVISORS & ACCOVNTANT5 One Bell Lane Lewes East Sussex BN7 IIU
THE ERNEST KLEINWORT CHARITABLE TRUST CONTENTS Page Company information Trustees, report Statement of Tru5tees' responsibilities Independent auditOf'5 report 9-12 Statement of fi'nancial activities 13 Balance sheet 14 Statement of cash flows 15 Notes to the h"nancial statements 16-26
THE ERNEST KLEINWORT CHARITABLE TRUST LEGAL AND ADMINISTRATIVE INFORMATION Trustees A Kleinwort M Kleinwort R Kleinwort 8t B Mayhew OBE E Limerick C Grieves M Tyndall Ichairmanl A Dickman N Glover Charlty number Registered office 1197205 One Bell Lane Lewes East Sussex BN7 IIU Director S Case Grants Officer A Murrell Auditor TC Group One Bell Lane Lewes East Sussex BN7 IJU Bankers Barclays PIC I Church Road Burgess Hill West Sussex RH15 9BD Solicitors Gaby Hardwicke 33 The Avenue Ea5tbourne East Sussex BN213YD
THE ERNEST KLEINWORT CHARITABLE TRUST LEGAL AND ADMINISTRATIVE INFORMATION Investment advisors Meridiem Investment Management Riverside House 2a Southwark Bridge Road London SEI 9HA Partners Capital LLP 5th Floor 5 Young Street London W8 5EH Caienove Capital l London Wall Place London EC2Y SAU
THE ERNEsf KLEINWORT CHARITABLE TRusr TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH2024 The Trustees present their annual report and financial statements for the year ended 31 March 2024. The Trust celebrated its 60, anniveTSary in March 2023. The financial statements have been prepared in accordance with the accounting policies set out in note I to the financial statements and Comply with the Trust's Settlement Deed dated 12 March 1963, the Charities Act 2011 and Accounting and Repothng by Charities.. Statement of Recommended Pracdce applicable to thariti preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK Republic of Ireland IFRS 1021 leffective l January 20191" Objecti¥es and artlvitles The aim of the Trust is to provide resource5 for charitable activitie5. The Trust's objettives are to PTrJmote and support such purposes recognised by the law of England and Wales as charitable, as the Trustees shall frorn time to time select. It is, therefore, exclusively, a grant making Trust, with no direct operating activity of it5 own. Public Benefit The Trustees have ensured that all activities throughout the period have been in the interest of public benefit. The Trustees confirm that they have referred to the Buidance contained in the Charity Commission's pneral guidance on public benefit when- reviewing the Trust's aims and objectives, and in planning future activities, and settling the grant makinB policy for the year. Grant MakinB Polivi Support is principally given to charities operating to address the needs of people in the county of Sussex, and charities working in the fields of wildlife and environmental conservatr'on Inational and Internationall. A small amount of funding is made available for reproductive health work linternationall where there 15 a ccmnection with cOnseaOn. The Trustees, current policy is still in accordan with the original wishes of the founders. All applications must be made by registered charities or exempt organisations. All applicants must apply on-line via the Trust's website and provide a copy of their most recent financial statements. The Tru5tee5 airn to follow the Trust's guidelines carefully,. funding will be conSided for start-up costs for a new project within an established Ofganisation, core costs or a specific project Icapital expenditure or assistance with njnning costs). In some cases, the Trustees will consider providing unrestricted funding. Trustees will consider one applicats'on from an applicant within 12 months. During the year, Trustees reviewed the number of applications received, the maximum amount available, and 3n applicant's prospects of sutcess, for each type of grant Ismall, Medium & Largel. A5 a result of this review, the maximum amount for a Small Grant was increased from £3,C0 to £10,000, and applications for Srnal Grant5 were considered by two Trustees IPY one Trustee) to whom power has been delegated by the full board of Trustees. Applications for Medium Grants continued to be considered quarterly, by not less than two Trustees to whom power has been delegated by the Trustees. Maximum donations for Medium Grants were increased to £20,000. The decision5 to award small and Medium Grants continue to be reviewed and ratified at full Trustee board meetings. held twice a year. Applications for Large Grants of £20,001 and above were considered by the full board of Trustees at the twice-yearly board meetings.
THE ERNEST KLEINWORT CHARITABLE TRUST TRUSTEES. REPORT {CONTINUEDI FOR THE YEAR ENOED 31 MARCH2024 The Trustees keep themselves up to date with charity law. and during the year they received updates specilic to their role from specialist advisors. Their involvement in the held of charitable activity supported by the Trust, as well as their experience of other charities. means that they bring an informed eye to their work. The Trustees ensure that the Trust benelits from high-quality investment, fi.nancial and legal advice. Achievements and performance The Trustees set the budget for grant giving by reference to a total return investment policy, with an agreed target return of UK CPI plus 4%. If this is achieved this will enable them to make grants at the appropriate level, while preserving the real value of the endowment. In the year ending March 2023, the Trustees held higher levels of cash in the current account than is usual. extraction from the investment was therefore paused from April 2023 until October 2023. Total extraction from investment Trn the year was £1,311,645. Extractt'on levels are reviewed at least annually, unless there is a fall in the value of the portfolio of more than IO%, ir) which case the extractr'on levels would be reviewed soot)er. As a result of market volatility in previous years. and to preserve grant making, the Trustee5 COnUe to maintain an additional cash buffer equivalent to one year's grant making. held in a non-discretionary account. These funds are held in additr.on to funds held in a current accouni for daily transattion purposes a)d reviewed on an annual basis. In the 2023 2024 financial year the Trustees agreed a btsdget of £2,000,OOD of grant giving and £172,165 in operats.onal costs. In ihe previous financial year the Trustees also made funds available to help charities meet rising costs of living. During the period the Trustees made donations totalling - £1,954,409 1£1.738,890 in 20231, which included additr'onal cost of living awards of £61,1001£16,700 in 20231. Large donations, such as £IOO,000 to Tusk Trust, £IOO,000 to the World Wide Fund for Nature and £87,850 to Martlets Hospice are made because of a close and often lon8-Standing relationship between the individual charities and one or more Trustees. Year Endin8 2024 2023 Number of applications received Number of applications within guidelines Number of applications supported 340 323 298 290 204160%) 184157%) Fundraising Note The Trust does not fundraise PLtblicly. nevertheless it is mindful of the code issued by the Fundraising Regulator.
THE ERNEST KLEINWORT CHARITABLE TRUST TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH2024 Investment Policy Under the terms of the constitution, there are no restrictions on the Trust's power to invest. The overall investment poliry of the Trust is to achieve a total return of UK CPI + 4% per annum, so allowing tfre target level of grant making while preserving the real value of the Trust's endowment. The Trust does not have a relationship with any other charity or organisation which might inhibit it from pur5uin8 Its own charitable objectives. The Trustees are sati51ied with the financial positr.on of the Trust and confirm that they have adequate assets available to fullil their obligations. The Trustees review their policy guidelines on a gular basis. It is the Trustees, policy to reserve a certain level of cash, partly to offset a possible fall in investment income. and partly to enable them to continue their policy of responding without delay to appeals for signifrant support where appropriate, the timing of which is unpredictable. The Trustees agreed and signed an updated Investment Policy Statement dated November 2023 to reflect these changes. Investment Performance The financial Statements show the investments at market value. The gainlllossl on dlsposals of Investments Is based on their opening market value and resulted in a realised 1055 of £143,808 for the year ended 3 1 March 202412023 loss: £563,7901 . At the year end ihe unrealised net gain amounted to £8.087.84512023 Ioss.. £1,294.6271. The total return of the investment portFolio during the year was Il%, after all managenEnt expense$12023.' _2.4%1. During the year, the Trustees agreed to add an allocation to private credit within their investmert strurture and increase their allocatr.on to listed private equitv. Flnan¢ial review The accounts cover all the activlkn'es of the Trust and have been prepared on an accruals basis. They are Presented in a format that reflects the split of funds between income lunrestrsctedl and capital (expendable endowmentl. £1,261.534 was transferred from ihe capital account to the income account to reflect thf drawdown of the endowment fund during the year. The accounts show a balance of unspent unre5trictedfunds of £3,170,119 compared with £2,739,653 in 2023. The majority of the Trust's income was derived from stock market investments and cash deposits, trtalling £1,272,740. The Trust committed to charitable donations of £1,954,409, so that, on an income basis there wa5 net operations deficit of £681,669 (compared with £1.092,571 in 20231 in the period. Support costs totalled £149,399 (compared with £130,540 in 20231. Investment Management fees totalled £390,124 compared wtth £388,333 in 2023. Net expenditure before investments and exchange gains and losses was £831,068 l¢ompared with £1,223,111 in 20231.
THE ERNEST KLEINWORT CHARITABLE TRUST TRUEE5, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 Reserves Policy & Review Total reserves as at 31 March 2024 were £77,566,916, represented by vnrestricted funds of £3,170,119 and expendable endowment funds of £74,396,797. The Trustees consider that whereas an operational charity would need to consider the need to keep their services active for a period of tt'me in the event of severe financial difficutty, the Trust is a grant making trust. As a minimum of 66% of the Tru5t'5 funds were held in investments accessible on short notr"ce, they were satish'ed that the Trust had 5uffi"cient liquidity and reserves to contt'nue as a going ctsncern for the foreseeable future. Risk Management The Trustees are aware of the major strategic, business and operational risks to which the charity is exposed, and these are reviewed regularly. The Trustees are satislied that adequate procedures are in place to mitigate exposure to these risks. although it is recognised that systems Can only provide reasonable, not ab501ute, assurance. They have identified the followin8 risk5'.
THE ERNEST KLEINWORT CHARITABLE TRUST TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Risk Identified Action taken to mitigate the risk Investments do not deliver sufficient returnldrop in alue The Trustees have appointed Asset Risk Consultants IUKI Ltd to report and advise on the performance of the investment managers. Advice is provided to formally constituted Investment Sub-committee of Trustees which meets twice per year. Investment managers are provided with an Investment Policy Statement sethn8 out the Investment Objertives of the 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 ndowment. he Trustee5 have implemented an extraction policy th with effert from 30 September 2018 based on a total return5 approaeh to provide stability in grant making and reflect their general aim of maintaining he real value of the endowment. In 2022 the Trustees agreed to maintain the rate of extraction at an absolute value to protect grant makin8 from market volatility,. part way through the vear extraction was moved from the investment funds to the cash buffer fund held in the non- discretionary account as a re5uIi of market conditions. pplicants do not demonstrate sufficient financial need for the funds applied for. Applicants are nancially insecure and donated funds are put at risk. The Trustees employ a Director to conduct a robust review of all grant application5 before passing them n to the relevant Trustees for a decision. The review includes scrutiny of the applicant charity, its role, governance, financial position and operations, and where necessary a meeting or visit often with EKCT Trustees present. pplications are divided into categories and rustees with specific skills, experience and interest in each area review applications before makin8 recommendation5 to the relevant meeting of rustees. Funds are not applied as Trustees intended. 11 applicants are required to report back on the expenditure of funds.
THE ERNEST KLEINWORT CHARITABLE TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH2024 Trustee risks are not sufficiently identtfiedlmanaged. The Trustees have adopted a conflict-of-interest policy and maintain a Register of Interests both of which are reviewed regularlv. The Chairman manages any potential conflicts of Interest thai occur,. during the year a review of disclosable interests was undertaken. All Trustees have signed Automatic Disqualification Declarabons. The Trustees have adopted a comprehensive set of governance, tinance and employment policies which are reviewed annually. During the year Trustees adopted a Document Signing Policy to ensure clarity and compliance when executing documents in the name of the Charitv. Regulatory non-compliance Going Concern The Trustees are of the opinion that the Trust ha5 adequaie resource5 to continue in operational existence for the foreseeable future and there are no material uncertaintr.es regarding the Trust's ability to do so. Plans for the Future The Trust is managed with a view to it being able to contirbue it5 acts"vities for the futLsre. structure. goveinat)ce and management The Trust is a grant making charitable trust governed by constitution dated 17 DecerNber 2021 las amended 31 January 20241 and has been registered with the Charity Commission since 17 December 2021. Prior to this, the activsties of the Trv5t were conducted by the Ernest Kleinwort Charitable Trust (registered charity number 2296651. The assets of this charity were transferred to the CIO on l April 2022, and the charity was removed from the Charity Commission Re8lSter of Charities in May 2022. The Trustees who served during the year and up to the date of 51gnalure of the fi.nancial statement5 were.. T Chandos Ichairmanl A Kleinwort M Kleinwort R Kleinwort Bt B Mayhew OBE E Limerick C Grieves M Tyndall (Chairman) A DickmaT) N Glover IResigned 7 November 20231 (Appointed 16 May 20241 (Appointed 7 November 20231 (Appointed 7 November 20231 (Appointed 8 October 20241
THÉ ÉRNEsf KLEIP4I4ThT CHIRITA8LE TAU5r TRUSTEES. REPORY ICONT114UEDI FOII IHE YEAREIIDED31 AIAftC112024 Trustees are undv the wms ol the c(SillUlkn wNth wxamer#Jed on 31 January 2024 to inctea5e the mèxknum TnJ¥t¢es Ir¢yn eht to t The Trust 15 rnanayd by the Tru#tts. ap01ed L¥eT fv term5 Ot the ronstitu¢ion dalty dminlstratton bt¢w dah Vlith bv the th'rertor •NI Grants (ffter. niirini rhv ar. cIrMaTI Tom Chandtx oltsred a% Tr%1• and Ch•lrmon. Th• Tvil$t% xpre$5d their Nderable 6r•ritude lor m•rry ye•rs off s•ThKe Torn Chandos had 8lVen to the Trust. ar for tt SI[ Ir th•nys lh bten mJedl hLStlrre 45 Ch•knw. Mark Tyndall was apwnttd (hvmTr and Tru5tee.' Mark 15 frffide[ and senr partrer of Artemis Investment MJn¢ernent LLP and a Trustee of Tusk Tn1. hd syih.cèrt $1ment m•nKemenr. leadershlp and £oTrwvatson eVrIee tothe tr Professor Amy DlcknTraN Ilso appolntd boArd ol Trustees ¢Jrlr4 wr. Prolessar DKkm•n Is iht KIn StrnK)r Resewch Fellow In Fk4 Cofistrv•thon arKI Professor ol Wihllil¢ Con5ervron 41 OXId UnWr51ty. She bnn¢5 subst•n)•l l•dtryhip •nd crybsvvaml io the trd of Trysiees. •A•ny ot the Trusttei strNY w the bo•rrt ot unre14ted drIt. a•d EO the Trum ¢on%lthr•b knowl•dp gf the Charitab world In yneral. •nd thé tausés wtrKh the Tfusi slyt% In yrthevL4r. Tht frustees dIs¢l th¢ stru¢tur¢ 01 the bowd. futuit TnJ%tee •pwintments •nd Ited ¢tyrn•nce wtters. knssiMs •rtonrn. •y M•MpmMt P•norrnl 7ht Trustees consklu the board ol Trvsiees crjnprix the key man•¢ement perScffjI of the Trust in char8e of dlreethry •nd toNir¢411nL runnlna and operallry Trust on I d•y lo day b$. JJI Trustts their knme Irt•ty. t>•t•lls ol stsff e&Denses •hd relltod pty •re dlKh)sed kn te$ 8 ••d 21 the •¢Ut5. The Trt, rtwt W•S tr4 the ol Tnrt M Tyndall ICh•lmbn Truste* Dated..
THE ERNEST KLEINWORT CHARITABLE TRUST STATEMETrIT OF TRUSTEES. RESPONSIBIllEs FOR THE YEAR ENDED 31 MARCH2024 The Trustees are responsible lor preparing the Trustees, Report and the finoncial statements in accordance with opplicable law and United Kingdom Accounttng Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to ¢haritie5 in England and Wale5 requires the TrSteeS to prepare h"nancial 5taternent5 for each h"n3ncial year which give a true and fair view ol the state of affairs ol the Trust and tsl the IncoAng resources ènd application of resources of the Trust fof that year. In preparing these linaDcial staternents, the Trustees are required to.. select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP.. make jud8ements and esttmates that are reasonable and prudent. stète whether applicable accountin8 Standards have been followed, subject to any material departyres disclosed and emplained In the h-nancial statements,- and prepare the financi31 statements On the 8oing concern basis unles5 it Is inoppropriate to presume that Ihe chafiry will continue in operatton. The Trustees are responsible for keeping suflicient accountTng records that disclose with reasonable accuracy at any brne the hnanrial posinon of rhe Trust and enable them to ensure that the financial 5tatement5 comply with the Chartnes Act 2011, the Charity (Accotsnrs and Reports) Regulatton$ 2008 and the provisions of the tfU5t deed. They are dlso responsible for 5afegu4rdinE the assets of the Trust and hence for taking reasonable steps for the prevenknon and detection of fraud and other Irregularitses.
THE ERNEST KLEINWORT CHARITABLE TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE ERNEST KLEINWORT CHARITABLE TRUST Opinion We have audited the financial statements of The Ernest Kleinwort Charitable Trust Ithe 'Trust'l for the year enLfed 31 March 2024 which comprise the statement of fi"nantial activities, the balance sheet, the staternent of cash flows and notes to the financial statements, includin8 significant accounting policies. The financial reporting frdmework that has been applied in their paratt.0n is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The FinGnciol Reporting 5tandLird L7ppIKoble in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements.. give a true and fair view of the state of the charity's affairs as at 31 March 2024 and of its incoming resources and application of resources, for the year then ended.. have been properly prepad in accordance with United Kingdom Generally Accepted Accountin8 Practio,. and have been prepared accordance with the requirements of the Charitie5 Act 2011. Basls for oplnlon We conducled our audit In accordance with International Standards on Audikn"ng IUKI IISAS IUKII and applitable law. Our re5ponsibilitie5 under those standards a further described in the Auditor's responsibilities fvr the audit of thefi"nancial stotements section of our report. We are independent of the Trust in accordance with the ethical requirements that are relevant to our audit of the linancial statements in the UK, including the FRC'S Ethical Standard, and we have futhlled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is suffi.cient and appropriate to provide a basis for our opinion. Conduslons relatln8 to going concern We have nothing to report in respect of the following mattets in relation to which the ISAS IUKI rquire us to report to you where.. the Tru5tees' use of the going concern basis of accountr.ng in the preparation of the financial statements is not appropriate; or the Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Trust's ability to conkn'nue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial Statements are authorlsed for issue. Other InformatSon The other information comprises the Information included in the annual report other than the financial statements and our auditols report thereon. The Trustee5 are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other informat¥)n and we do not express any form of assurance conclusion theOn. Our responsibility is to ad the other infrjrmation and, in doing so, consider whether the other information is materially inconsistent with the financial ststements or our knowledge obtairied in the course of the audit, or otherwise appears to be materially mi5Stated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this glves rise to a material misstatement in the financlal statements themselves. If, based on the work we have performed, we conclude that there 15 a material mi5Statement of this other information, we are required to report that fact. We have nothin8 to report In this regard.
THE ERNEST KLEINWORT CHARITABLE TRUST INDEPENDENT AUDITOR'S REPORTICONTINUEOI TOTHETRUSTEESOF THE ERNEST KLEINWORTCHARITABLE TRUST Matters on which we are required to report by exception We have nothing to report in respect of the following matters in relation to which the Charities IAccounts and Reports) Regulations 2Th)8 requi us to report to you if, in our opinion.. the information given in the fi.nancial statements is inconsi5tenl in any Material respect with the Trustees, report.. or suffi.cient accountr'ng records have not been kept.. or the financial statements are not in agreement with the accounting records,. or we have not received all the information and explanatr.ons we require for our audit. Responsibilities of Trustees As explained more fully in the Statement of Trustees, responsibilities, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they 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 linancial statements, the TfUStee5 are responsible for assessing the Trust'5 ability to continue as a going concern, disclosing, a5 applicable, matter5 related to going concern and using the going concern basis of accountr'ng unless the Trustees either intend to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements We have been appointed as auditor under sectr'on 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulatt'ons made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the tinancial 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 IUKI will always detect a material misstatement when it exists. Misstatements arise from fiaud or error and are Considered material if, individually or in the a8gTe8ate, they could reonablY be expected to influence ihe economic decision5 of users taken on the basi5 of these financial statemenls. Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are Capable of detecting irregularities, intludlng fraud, is dei8iled below. Emtent to which the audit was considered capable of detecting irregularities, induding fraud The objectives of our audit, in respect to fiaud, are.. to identify and assess the risks of materia misstatement ot the financial statements due to fraud,. to obtain sufficient appropriate audit evidence regarding the a55essed risks of material mi5Statement due to fraud, through designing and implementing appropriate responses,. and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with Eovernance of the entity and its management. 10-
THE ERNEST KLEINWORT CHARITABLE TRUST INDEPENDENT AUDITOR'S REPORT {CONTINUEDI TO THE TRUSTEES OF THE ERNE5f KLEINWORT CHARITABLE TRUST Our approach was as follows.. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discusslon with the directors and other management las required by auditing standards), and di5CU55ed with the directors and other management the policie5 and procedures regarding compliance with laws and regulations,. We considered the legal and regulatory frameworks direttly applicable to the financial statements reporting framework IFRS 102 and the Companies Act 20061 and the relevant tax compliance re6ulatt'on5 in the UK,. We considered the nature of the industry, the control environment and business performance, including the key drivers for management's remuneration; We communicated identified laws and regulations throughout our team and remaine(l alert to an¥ indications of non-compliance throughout the audit,. We consiilered the procedures and controls that the company has established to address risks identlied. or that otherwise Prevent. deter and detect fraud,. and how senior management monitors those progrdmmes and controls. Based on this undeTStanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals,. revlewlng the financial statement disclosures and testing to supporting documentation,. performing analytical procedures,. and enquiring of management, and were designed to provide reasonable assurance that the financial statements were fr& from fraud or error. Owing to the Inherent limbtations of an audit, there is an unavoidable risk that we may not have deterted some material misstatements in the financial statements. even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws anil regLtlations lirregularitiesl is from the events and transathons reflected in the fi'nancial statements, the le55 likely the inherently limite(I procedures required by auditing 5tandard5 would identify it. The risk is also greater regarding irregularitr'es occurring due to fraud rather than error, as fraud involves intentional c0ealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. A ftjrther description of our SponSIbilItieS is available on the Flnanclal Reporting Councll's website at.. https.'l/ www.frc.org.uklauditorsrespon5ibilitr.es. This description forms part of our auditor's report. Other matters Your attention is drawn to the fact that the charity has prepared financial statement5 in accordance with "Accounting and Reporting by Charities- Statement of Recommended Practice applicable to charities pParing their accounts in accordance with the Financial Repong Standard applicable in the UK and Republic of Ireland IFRS 1021" las amended) in prefence to the Accounting and Repothng by Charities.. Statement of Recommended Practice issued on l April 2005 which is referred to in the extant regulation5 but has now been withdrawn. This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice. 11
THE ERNEST KLEINWORT CHARITABLE TRUST INDEPENDENT AUDITOR'S REPORT ICONTINUEDI TO THE TRUSTEES OF THE ERNEST KLEINWORT CHARITABLE TRUST Use of ovr report Thi5 report 15 made solely to the charity's Trustees. as a body, in accordarice with part 4 of the Charlties (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 a55ume responsibility to anyone other than the charity and Ihe charity's trustees as a body, for our audit work. for this report, or for the opinions we have formed. David Martin FCA (Senior Statutory Auditor) for and on behalf of TC Group Statutory Auditor Offi"ce: Lewe5 Date.. TC Group is eliEible for appointment as auditor of the Trust by virtue of it5 eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006 12-
THE ERNEST KLEINWORT CHARITABLE TrUST STATEMEKf OF FINANCIAL ACTivrriES FOR THE YEAR ENDED 31 MARCH 2024 Unrettrirted Endowment lunds hjnds 2024 2024 Total Unrestrlrted Endowment funds lunds 2023 2023 Total 2024 2023 Intomè from: Investments 1,272.740 1,272.740 646,319 646,319 Toial incorne 1,272.740 1,272.740 646,319 646,319 ENpendlture on.. Raising funds Charirable activities 390,124 390,124 2,103.808 388.333 388,333 1.869,430 2,103,808 1.869.430 Total txpendltuie 2.103,808 390.124 2.493,932 1.869,430 388,333 2,257,763 Net Kainslllossesl on investments 7.944,037 7.944,037 11,858,417) 11,858.4171 Net Incomellexpendltstyl 1831.0681 7.553,913 6.722.845 11.223,1111 12.246,7501 13,469.8611 Transfers between funds 1,261.534 11,261.5341 2,433,795 12,433,795) other Teco8nised fdins and Iosse5'. Other losses li 1157,3071 1157,3071 140.7701 140,7701 Net mo¥Èment In lunds 430,466 6,135,072 6.565,538 1.210.684 14,721,315) 13,510.6311 RecoD¢lllatlon of fund5: Fund balances at l April 2023 2.739,653 68.261.725 71,001.378 1.528.969 72,983.040 74.512,LXJ9 Fund balances at 31 March 2024 3,170,119 74,396.797 77,566,916 2,739,653 68,261,725 71.CXJI.378 The statement of linanci81 a¢tivitie5 ircludes all gains and 105ses reco8nised in the year. All Iorne and expenditure dèrive from contynuing activities. 13-
THE ERNESTKLEINWORTCMARITA8LE TRL BAiANts SHEÉT ASAT3J AIARCHZ021 2023 Flxqd •ss•ts Investments 76.050,788 69.702,0 CurTt s•¢s Debtor5 C•5h •t bjrtk afld ir hw 16.997 1.472.04? 1.448.L 1,559.039 1.520,E46 Crn(Mtovs'. •mourt• du• ithln4) 42,9111 1121.3241 1.516.128 1.299,282 ro •$ts l•M curv•nt lbIlItI•5 77,566.916 ?I,Wl.378 Th• ofth•Tfus1 Endowment fund5 UnrestrKttd lund5 74,396.797 3.170,119 68,261,725 2,739.653 17 77.566.916 71,1)JI.378 141 Th I4n(l•l slt•ments wrt apwuled thT*¢e$ on...... Tyrtrfall leIrman1 14.
THE ERNEST KLEINWORT CHARITABLE TRUST STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Notes Cash flows from operating activities Cash absorbed by operations 20 12,672,500) I2,270,9) Investing artivitles Purchase of investments Proceeds from disposal of investment5 Investment income received 113,992,765) 15,300,314 1,272,740 115,783,429) 14.892,197 646.319 Net cash 8enerdted fromllu5ed in} investing activities 2,580,289 1244,9131 Net cash used in financing activitles Net decrease In cash and cash equivalents 192,2111 12,515,813) Cash and cash equbvalents at beginning of year 5,255,872 7,771,685 Cash and Cash equlvalents at end of year 5,163,661 5,255,872 Relating to.. Cash at bank and in hand Short term deposlts included in current asset investments Bank overdrafts included In creditors payable within one year 1,472,042 1,448,050 3,691,619 3,979,415 1171,5931 15-
THE ERNEST KLEINWORT CHARifA8LE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH2024 Accounting policies Charity information The Ernest Kleinwort Charitable Trust was a registered charity governed by a constitution dated 17 December 2021 las amended 31 january 20241. The charity registered as a CIO on 17 December 2021 with funds being transferred from the original Trust on 25 May 2022, at which time the original Trust was removed from the Register. 1.1 Accounting convention The fi'nancial statements have been prepared in accordance with ihe Trust's governing document. t Charities Act 2011, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland~ I'FRS 102.1 and the Charities SORP Accounting and Repothng by Charities.. Statement ol Recommended Practr'ce applicable to charities preparing their account5 in accordance with the Financkil Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffective I january 20191. The Trust 15 a Public Benefit Enb'ty as dehned by FRS 102. The financial statements have departed from the Charikn'es IAccounts and Reports) Regtjlations 28 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Praclice for charitie5 applying FRS 102 rather than the version of the Statement ol Recommended Practtce which is referred io in the Regulations but which has since been withdrawn. The financial statements are prepared in sterling. which is the functional currency of the Trust. Monetary amounts in these fi.nancial 5tatemeniS are rounded to the nearest £. The hnancial statements have been prepared under the historical cosi convention, modilied to include certain financial instruments at fair value. The principal accountr.ng policie5 adopted are set out below. 1.2 Going concern At the time of approving the h'nancial statements, the Trustees have a asOnable expectatt'on that the Trust has adequate resources to contr'nue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accountr.ng in preparing the financial statements. 1.3 Charitable funds Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectr"ves. Endowment funds are subject to specific conditions by donor5 that the capital must be maintained by the Trust. 1.4 Income Income is recognised when the Trust is legally entitled to it after any performance conditions have been met. the amounts can be measured reliably. and it is probable that income will be received. 16-
THE ERNEST KLEINWORT CHARITABLE TRusr NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2Q24 Accounting policies Icontinuedl Interest on fun(ls 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 bank. Dividends are recognised once the dividend has been declared and notificats'on has been received of the dividend due. This Is normally upon notification by our investment managers of the dividend yield of the investment portfolios. Income tax recoverable in relation to investment income 15 recognised at the time investment income Is receivable. 1.5 Empenditure Liabilitr"e5 are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. All expendtture is accounted for on an accruals basis and ha5 been included under expense categories that a8greg3te all costs for allocation to activities. Where costs cannot be dirertly attributed lo partcular activities they have been allocated on a basis consistent with the use of the resources. Grants payable are charged in the year when the offer is made except in those cases Whe the offu is conditional, such 8fdnt5 bein8 recognised as expenditure when the conditions artaching are fulfilled. Grants offered subject to conditions which have not been met at the year end a noted as a commltment, but not accrued as expenditure. 1.6 Fixed asset investments Fixed asset investments are initially measured at transaction price excludin8 transaction cost5, and are subsequently rneasud at fair value at each reporting date. Change5 in fair value are recognised in net incomellexpenditurel for the year. Transaction costs are expensed as incurred. 1.7 Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-terni liquid investments with original maturities of three months or less, and bank overdraft5. 1.8 Financial instruments The Trust has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 'Other Financial Instrument5 Issues, of FRS 102 to all of its financial instruments. Flnancial instruments are recognised in the Trust's balance sheet when the Trust becomes party to the contractual provisions of the instrument. Financial assets and liabilib'es are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to Set off the recognised arrount5 and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. 17-
THE ERNEST KLEINWORT CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS ICONTINUEOI FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies (Continued) Bosicfinoncial t75sets Basic financial a55ets, which include debtors and cash and bank balances. are initially measured transacb'on price including transacb'on cosls and are subsequently carried at amorhsed cost using the effective interest method unless the arrangement constitutes a financing transaction. where the transactt'on is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classilied as receivable within one year afe not amortised. Bqsicfinanciul liobilities Basic linancial liabilities, including Creditors and bank loans are initially recognised at transaction price unless the arrangement constt'tutes a financing transaction, where the debt instrument is measured at the psent value of the future payment5 discounted at a market rate of interest. Financial liabilities classified as payable within one year awe not amortTrsed. Debt instrument5 are subseouently carried al amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been aCqUid in the ordTrnary course of operations from suppliers. Amounts payable are classifi.ed as current liabilities if payment is due within one year or less. If not. they a presented as non-current liabilities. Trade creditor5 are recognised initially at transaction price and subsequently measured at amortised Cost Using the effectr.ve interest method. Oereco9nition olfint7ncial liabilities Finan¢4al liabilitr.es are derecognised when the Trust's contractual obligation5 expire or are discharged or cancelled. 1.9 Employee benefits The cost of any unused holiday entitlement is recognised in the period in which the ewnpl(Tryee's service5 are received. Termination benefits are recognised immediately a5 an expense when the Trust is demonstrably committed to terminate the employrnent of an employee or to provide termination beneliis. 1.10 Foreign exchange Tran53cbons in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the date5 of the transactions. At each reporting end date, monetary assets and liatJilities that are denominated in foreien currencies are retranslated at the rates prevailing on the pothng end date. Gains and 1055es arising on translation in the pertod are included in profit or loss. 18-
THE ERNEsf KLEINWORT CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENT5 (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Income from investments Unre5tritted Unrestricted funds fund5 2024 2023 Income from UK listed securities Interest receivable 1,272,733 646,319 1,272,740 646,319 Raising tund5 Endowment Endowment funds funds genernl general 2024 2023 Investment management 390,124 388,333 390,124 388,333 Charltable artivities Charitable Charitable Expendlture Expenditure 2024 2023 Gnt funding of activities15ee note 51 1,954,409 1,738,890 Share of support cost5 (see note 61 Share of governance costs Isee note 61 133,197 16,202 106,383 24,157 2,103,808 1,869,430 19-
THE ERNEST KLEINWORT CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 Grants payable Charitable Charitable Expenditure Expenditure 2024 2023 Grants to instilutrons 1,954,409 1,738,890 Support tast5 Support Governance costs costs 2024 Support Governance cost5 osts 2023 Staff costs Miscellaneous support costs Payroll costs IT Project Other Audit fees Legal and professional Bank fees ACF Membership Trustees indemnity insurance 117,741 247 117,741 247 99,323 238 99,323 238 496 496 633 3.346 2,843 633 3,346 2,843 13,613 4,926 304 6.675 8.038 6,675 8.038 7,398 4,619 488 3,281 416 7,398 4.619 488 3,281 416 13,613 4,926 304 3.157 2,157 3,157 2.157 133,197 16,202 149,399 106,383 24,157 130.540 Analysed between Charitable activities 133,197 16,202 149,399 106,383 24,157 130.540 Govemance costs includes payments to the auditors of £11.76012023- £10,890) for audit fees. Trustees None of the Trustees lor any persons connected with them) received any remuneration during the year, but one Trustee wa5 reimbursed a total of £412 travelling expenses Ino amounts for 20231. -20-
THE ERNEST KLEINWORT C14ARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS {CONTINUEOI FOR THE YEAR ENDED 31 MARCH2024 Ernployees The average monthly number of employees during the year was.. 2024 Number 2023 Number Finance and administration Employment costs 2024 2023 Wages and Salaries Social security cost5 Other pension costs 103,727 6,804 7,210 87,474 5,058 6,791 117,741 99,323 The number of employees whose annual remuneration was more than £60,orx) is as follows.. 2024 Number 2023 Number In the band £70,001- £80,000 Gain5 and losses on investments Endowment Endowment funds funds 2024 2023 Gains/llosses1 arising on: Revaluation of investments Sale of investments 8,087,845 1143,8081 11,294,6271 1563,7901 7,944,037 11,858,417) 10 Taxation The charity is exempt from taxation on its activitie5 because all its income is applied for charitable purposes. 21
THE ERNEST KLEINWORT CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 11 Other gain5 and lossès Endowment Endowment funds funds 2024 2023 Gains/llossesl upon-. Foreign exchange 157,307 40,770 12 Fimed asset investments Listed investments Cash in portfolio Total Cost or valuation At l April 2023 Addition5 Valuatr'on changes Transfer to cash Disposals 65,722,681 13,992.765 7,916.390 3,979,415 69.702.096 13.992.765 7.916.390 1287,7951 115.272,6681 1287,7951 115,272,668) At 31 March 2024 72,359,168 3,691,620 76,050,788 Carrying arnount At 31 March 2024 72,359,168 3.691,620 76,050.788 At 31 March 2023 65,722,681 3,979,415 69.702,096 13 Debtors 2024 2023 Amounts falling due within one year.. ppaYments arid accrued income 86,997 72,556 -22-
THE ERNEST KLEINWORT CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS ICONnNUEDI FOR THE YEAR ENDED 31 MARCH 2024 14 Loans and overdraft5 2024 2023 Bank overdraft5 171,593 Payable within one year 171,593 15 Creditors: amounts falling due within one year 2024 2023 Notes Bank overdrafts Other taxation and social security Trade creditors Other creditors Accruals and deferred income 14 171,593 55 30,864 7.922 10,890 55 23,805 9.251 9.800 42,911 221.324 -23-
THE ERNEST KLEINWORT CHARITABLE TRUST NOTES TO THE FINANCIAL ATEmENTs ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 16 Endowment funds Endowment funds represent assets which must be held permanently by the Trust. Income arising on tl endowment funds can be used in accordance with the ob3ects of the Trust and 15 included as UnStled income. Any capital gains or losse5 arising on the assets form part of the fund. At l Aprll 2023 Resources empended Transfers Gains and At 31 March 1055es 2024 Permanent endowments 68.261,725 1390,1241 11,261,5341 7,786.730 74,396,797 Prevlous year: At l April 2022 Resources expended Transfers Gains and At 31 March losses 2023 Permanent endowments 72,983,040 1388,3331 12,433.7951 11.899,1871 68,261,725 17 Unrestricled fund5 The unrestricted funds of the charity comprise the unexpended balances of donations and grants which a not sijbject to specilic conditions by donors and @rantors as to how they may be used. At l April 2023 Incoming resources Resources expended Transfers At al March 2024 General funds 2,739,653 1,272,740 12.103,8081 1,261,534 3,170,119 Previous year: At l April 2022 Incoming resources Resovrces empended Transfers At 31 March 2023 General funds 1,528,969 646,319 11.869,4301 2,433,795 2.739.653 -24-
THE ERNEST KLEINWORT CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENT5 ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 18 Analysis of net assets between funds Unrestrlcted Endowment funds funds 2024 2024 Total 2024 At 31 March 2024: Investment5 76,050,788 11,653,991) 76,050,788 1,516,128 Current assetsllliabilitiesl 3,170,119 3,170,119 74,396,797 77,566,916 Unrestricted Endowment funds funds 2023 2023 Total 2023 At 31 March 2023: Investments Current assetsllliabilitiesl 69,702.096 11,440,371) 69.702.096 1,299,282 2,739,653 2,739,653 68,261,725 71,001,378 19 Related party trnn5Ortions Two of the Trustees are also Trustees of the Tusk Trust to whom donations totalling £IOO,000 12021- £IOO,O(M)I were made during the linancial year. The Trustee5 were not involved in the decision to make those donations. One of the Trustees is an Ambassador of WWF UK to whom a donation of £ILKJ,00012023.' £ILKJ,CK)01 was made during the financial year. The Trustee was not involved in the decision to make the donation. -25-
THE ERNEST KLEINWORT CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS ICONTINUED} FOR THE YEAR EAIDED 31 MARCH 2024 20 Cash Eenerated from operations 2024 2023 Surplus/ldeficitl for the year 6,722,845 13,469,861) Adjustments for: Investment income recognised in statement of linancial activities Foreign exchange differences Loss on disposal of investmenls Fair value gains and1055e5 on investments 11,272,740) 1157.3071 143,808 18,087,845) 1646,3191 140.7701 563.790 1,294.627 Movements in working capital.. Ilncreasel/decrea5e in debtors IDecreasel/increa5e In creditors 114.4411 16.8201 4,719 22,914 Cash absorbed by operation5 12,672,500) 12,270,900) 21 Analysis of changes in net funds The Trust had no material debt during the year. 26-