Charity Resi#rntity¥ 1197205 TIIE ERNW KLEINWORT CHAR￿ABLE TRUST ANNUAL REPORT AND FINANCIAL STATEMENT5 FOR THE YEAR ENDED 31 MARCTrI 2025 8USINESS ADVISORS One Bell Lane Lewes East Sussex N7UU THE ERNE￿ KLEINWORT CHARffABLE TRusr CONTENTS Page Company information Trustees, report Statement of Tru5tees' responsibilities Independent auditor's report Staternent of financial actiwties io Balance sheet li Staternent ol cash flows 12 Notes to the tinancial statements 13-23 THE ERNEsf KLEINWORT CHARITABL£ TRusr LEGAL AND ADMINISTIiATIVE INFORMATION TNstees A Kleinwort M Kleinwort R Kleinwort 8t P Mayhew OBE E bmerick C Grleves M Tyndall (Chairm)nl A Oickman N Glover Charlty number 1197205 Re81#¢r￿ offitÈ One Oell Lane Lewes East Sussèx BN7 IJU S Case Grants Officer A Murrell Audltof TC Group One Bell Lane Lewes East Sussex 8N7 IJU Bankws Barclays PIC I Church Roa¢J 8urgess Hill West Sussex Rèt15 9BO Solkltors Go￿ H•rdwi¢ke 33 The Avenue Ea5tbourne Eart Sussex BN213YD YHE f RNE￿ KLEINWORT CHARITABLE TRusr LEGAL AND ADMINISTRATIVE INFORMATION Invèstn*nt athilsorn Navera Investment Management Ri¥ers+de House 2a Southwark Bridge Road London SEI 9HA Partners Capita5 LLP 5th Floor 5 Young Street London W8 SEH Cazenove Capital l London Wall Place London EC2Y SAU THE ERNEsf KLEINWORT CHARITABLE TRU TRUSTEES. REPORT FOR THE YEAR EhlDED31 MARCH2025 The Trustees wtsent their anftyal report and financial statements for the year ended 31 Mar¢h 2025. The financial 5tstements have been prepared sn accordance with the accounting policies set out in note I to the finan£ial staternents and comply with the Trust's Settlement Deed dated 12 March 1963, the Charities Act 2011 and "Accounting and Repotting by Charitles.. Statèment of Retommended practr.ce applicable to charlttes preparin¥ iheir accounts in accordance with the Finantial Reporting Stsndard applicable in the UK ard 8epublt¢ of Ireland IFRS 1021 leffectiye l January 20191.. Obi•(Il¥*s and •dl¥ltses The aim of the Trust is to provide re50urres for charstsble acttvitr"e5. The Trtjst's objectives are to promote 4ftd support such purposes reco8nised by the law of England and Walés as tharr£able. as the Trustees shall frrim time to time selert. It is. therefore, exclusSvely, a grant makingTrust, with no direct op¢ratin8 acisvity ol its own. Publlc 8enefft The Trustees haye ensured that 411 artsvitits throughout the period have been in the interest of pubtic benefft. The Trustees confirm that they have referred to the guidance containetl In the Charity Commission's pneral guidance on public benefit when.. reviewin8 the Trust's aims and obJective5. and in planning future Jetlvities, and settling the grant making policy for the year. Grnnt Ma4ln8 Poll Support is principally given to thar¢tles operatlng to address the needs of people In the county of Sussex, and ch•riiies workin8 in the fields of wildlife and environmentsl conservation Inational and internatio*N31l. A small amount of funding is rnade available for reproductsve health work lintemètionall where there is o ccnnection with conservatlon. The Trustees, current ¥xilicy is sts'll in accordance with the original wishes of the founders. All applicatlons must be fflade by re8Jrtered Charl￿•S Of exempt Organisa￿On$. All applicants must apply on-llne via the Trust's web51te and providè a copy of theii m05t retont financial statements. The Trustees aim to follow the Trvst's 8uidelines carelully.. funding will be considered for start-op costs foi a new projett within an estsb1$5hed organisation. core tosts or a 5pecifi"c projett Icapitsl expenditule or assistsn¢e with njnniftg costs). In some uses, the Trustees will consider providin8 unrestricted funding. Trustees will consider one •p￿1￿l50n from an applicant with*n each 12 month peritry. Applicatksns are consid•red fw Small, Medium and Large Grants. Applications for Small Grants lup to EIO,0001 must be appfoved by not less than two Trustèes to whom power has been delegated by the full board of Trustees. Ap￿1(atIOnS for Medium Grants (b*￿et# £IO.WI - E20,OJOI are considered quartedy. and approved ￿ not less than two Trustee5 lone of whom must be a family Trsjsteel to whom power has been dele8ated by the full board of Trustees. The deeisions to award Small and Med4um Gronts Contynue to be reviewed and ratyfled at full Trus￿¢ board rneetin8s. held ￿¥ce a year. ApplKation5 foT LarBe Grnnts of £20,001 antl above are considered fy the full board el Trust•es at the twice-yearly board meetings, Wlth decisions taken by rnajority vote. The Trustees keep themselves up to date with charity law, and dtsiin8 the year they received updates spe¢ific to their role from specialist advisors. Their inbDlvement in the field ol charitable actfvity SUPPOrted by the Trust, as well a5 their ex￿rienCe of other Chari￿￿$. means that they brln4 an ifsformed eye to thesr work. The Trustees erssure that theTrust benefits frorn hi4h-quality investrner¢t. financial and legal advice. THE ERNESf KLEINWORT CHARITABLETRUSF TRUSTEES, REPORT ICONTINUEDI FOR fH£ YEAR EPIDED3J MARCH 2025 A(h￿VerntMtS and perftyrnan¢e The Trustees sèt the budget for Rrant giving by reference to a total return investment wlicy. Total extraction from investrnent In the year was £2.426.365. Extracion levels are reviewed at least annually, unless there is a fall in the value of the ￿rrfollO of more than IO%. in which case the extraction levels would be reviewed sooner. During the year Trurtees agreed to review the level of extraction for the following12025 20261 financial year to ensure grant making was a￿e to reflecr recent Inflanonary change5. In the 2024 - 2025 financial year the Trustees agreed a ￿deet of £2.015,c￿ ol grnnt giving and E194,858 ID operational costs. During the period the Trustees made donations totsllin8 - £2.027.205 Iprevious year £1.954,4091. Large dorn8knon5, such as £IIO,QOQ to Tusk Trust, EICrt).ODO to the Southern Hospice Group and £ICM),CQO to the World Wide Fund fot Nature are made because of a close arKI often lon8-standing relationship between the ￿ndiVIdUal charitr.es and one or more Trustees. Year Endln8 2025 2024 Number of applicattons rece￿Ved Number of applicanons wtthin guidèlines Nutnber supporte 394 340 343 298 applications 218155%> 2fi416cr%i Fundralsin8 Notè The Trust does not fundraise publi¢ly. nevertheless it is mindful of the code issued by the Fundraising Regulator. Investment Pollcy Under the terms of the constitution. there are no restrictions on the Trust's powef to invest. The overall investment policy of the Trust is to achieve z total return of UK CPI + 4% per annum. so allowing tFe target level ol Brant making while preservi￿ the real value of the Trust's endowment. The Trust does not have a relattonship with any other charity or organisation which might inhibsf It from pursuing its own charitsble objectives. The Trustee5 are satisfied with the financial position ol the Trust and confi'rrn that they have adequate assets available to lulfi'l their obligations. The Trustees review their policy guidelines on a regular basis. It is the Trustees. poliry ro reserve a certain1evel of cash, partly to offsei a p¢ssible fall in Inwe5tmenr Income, nd partly to enable thern to continue thesr policy of resportdins without de5ay to appeals for si8niftant support where appropriate, the timing ot which 15 unpredi¢tsble. The Trustees agreed and signed an uwlated Investment Policy Statement dated November 2024 ¢0 reflert these chanBes. THE EANE5T KLEINWORT CHARITABLE TRusr TRusfEES' REPORT ICONTINUEOI R)R niE YEAR Ef4D£D 31 MARCH2025 Investment Performante The financial statements Show the investments at market value. The 8ain/lloss1 on dispwls of Sn￿stme￿ts is basefl on their openin8 market value and resulted in a realised gain of £307,276 for the year ended 31 March 2025 Iprevious year loss.. £143,808). At the year end the unrealised nel gain amounted to £2,500,105 (previous year 8aift.. È8,087,8451. The tgtal return of the snvestrnent wrtfolio during the ye¥r w•$ 3%, after all management expenses Iprewous year.. Il%1. The accounts cover all the activities of the Trust and have been prepared on an accrual's basis. They a presented in a format that reflects the splTt of funds bttwttn intome lunfestrlctsdl and capltal le>pendable endowmentl. £524,$30 was traftsferted from the upital at¢ount to the ineorne •ccount to refl*t the drawdown of the endowment lund durtng the year. Thè attounts show a ￿lance of unspent unrestrirted funds of £2.888,214 compared wr(h £3,170,119 in the previous year. The Trust's income was derived from stock market in¥￿trnents and cash deposits. totsllsno £2.425,601. The Trust committed to charitable danations of £2,027,205 (previous year £1,954.4091, so that. on an Income basis there w•3 è net opef•tiotts surplus of £398.396 Iprevious year deficst of E681,6691. Support costs totalled £135,363 Iprevious year £149.3991. Investment Managernent fees totalled £425,823 Iprevious year £390,124). Net expenditure before in¥estments and exchange 8alAS and losses was £183,198 (previous year £1,221,1921. Reyr¥es Potlcy & Revlew Total reserves as ar 31 March 2025 were £77.962,669 represented by unrestrirted fund5 of £2.888,214 ?nd expendable endowment funds of £75.074,45S. The Trustees consider that whereas an operadonal charity would need to consthr the need to keep their servKes active for a period of tirne in the e￿nt of severe financial difficulty. the Trust is a 6rant makin8 trust. A5 a rninirnurn of 66% 01 the Trust's funds were held in investments actessible on short noti¢e, they were Sa￿St￿￿ that the Trust had sufficient liquidity and feserves to continue as a 80in8 concern tof tte foreseeable future. Plansfor the F¥turn The Trust is rnanagÈd with a view to it bèing able to conttnuè Its att5vitlès forthe fvturt. Structure. and manwment The Trust is a grant making charitsble trust 60￿rned by cgnstitution dated 17 Oee*mber 2021 las arntnded 31 january 20241 and has been fe8tsteTed with the Charity C¢)rnmissson since 17 Oecember 2021. Prior to this. the activities of the Trust were condurted by the Ernest Kleinwort Charitslle Trust IregisEered charity number 2296651. The assets of this tharity were transferred tts the CIO on l April 2022, and the charity was removed frtsm the Charity Commission Re8istsr of Charitie5 in May 2022. TheTru5tees who served dunng the year and up to the date of s*gnature of the financièl stat•rnents were.. A Kleinwort M Kleinwort R Kleinwort Bt B Mayhew OBE E Limerick TH£ ERNEsf KL£INWOAT CHARITABLE Tliu TAUSYEES. REPORT ICONTINUEDI FOR THE YEAR ENOED 31 MARCH 2025 C Grieves M Tyndall ICh•irmanl A Dickman N Glover IAppointed 16 May 20241 (Appointed 8 October 20241 Trustee5 are apwinted under rhe tems of the con5iiution which was amended on 31 January 2024 10 increase the rnoximum number of Trustees from eight to ten. The Trust is managed by the Trustees, who aie appM)inted under the terms ol the constitution with daily dministration being dealt with by the Oifector and Grants Officer. Many of the Trustees serve on tle board ol unrelated charities, Jnd they brin8 to the Trust considerable knowledge ol the charitable world in 8eneral, and the Causes which the Trust supports In parricular. During the year, two new Trustees were appointed to the Board of Trustee5'. Ceetah Grieves is the CEO ol a grant making Trust, and lives in Sussex. She ha5 previously worked as commercial and med*a lawyer. for Allen & Overy, Warner Music and Channel Four Television. She is passionate about equality and access to educatron. and working to improve the environment we live In. Nikki Glover is the Trustee ol a family grant rnaklng Trust and has previously been on the board ol another Sussex based Érant making frust. She has lived in Sussex for 35 years, and has a keen interest in local philanthropy. The TrU￿ee$ continued to discuss the structure ol the board, luttsre Trustee appointments and related governance matters. The Trustees adopt relevanl policies for the appropriate mana8ernent ol governance, h"nancial and employment risks. These are reviewed on an annual basis. Durin8 the year a new policy on Use of Logo & Brand was adopted Key ManaBement Pwsonnel The Trustees consider the b)ard of Trustees comprise the key mana8ement personnel of the Trust in charge ol directing and coTrtrollin8, running and operattng the Trum on a day to day ba515. All Trustees give of their time freely. Details ol staff expenses and related party transactions are disc105ed in notss 8 and 21 to the accounts. The Trustees, report was approved by the Board ol Trustees. M Trndall (Chairman) Trusiee Dated." ......... THE ERNEsf KLEINWORT CHARITABLE TAusr srATEMETr￿ OF fRusf£ES' AESPONSIBILifiES FOR THE YE4R ENDEL13J MARCH21)2S rhe Tr¥stees are responsible for preparing the Trustees, Report and the financial ststements in accordènce with applicab￿ law and United Kingdom Accounrring Stsndary15 Ivnited Kingdom Generally Accepted Accounttng Practice). The law appllcable to charl￿e5 in England and Wales requires the Trustees to prepare financial staternettts for each financial year which give a true and fair view of the state of affairs of the Trust and of the incofftn8 rèsources and applieat50# of resources of the Trvst for that year. In preparing these financial ststernents. the Trustees are required to.. - 5eled 5Uitable actountt.ng polities and then app*y them consistently- - observe the rnethods and Pfintiple5 in the Chafiiies SOAP,. - make jud8ements and e5timate5 that Jre rtasonable and prudent; - stste whether applicable accounting 5tsndards haye ￿en frjllowed, subjert to any material departyre5 dixlos*d and explained in the fimncial ststements.. and prepare the financial ststements on the 8ung C¢>n￿rn ba5$5 unless it Is injppropriate to presume that the charity will continue In OFeration. The Tnjstees are resFonsible for keèping 5yffltient accourttSng iecords that disclose with reasonatrje iccurary at any tr.me the financial s)osition of the Trust and enable them to ensure that the financial ststements compty with the charitr.es Act 2011, the Charity IAccounts and Reportsl Regulations 2008 and the provtsions of the trust deed. They are also responsible for safeguard*ng the assets of the Trust and hence for tsking reasonable *ps for the prevention and detethon of frnud and other irregularitfes. THE £RNf5f KLEINWORT CHAftIYA8iETRUSr INDEPENDENT AUDifoR'S REPORT TO fHE TAUSTEES OF THÉ ÉRNEYf XLE1fr4WORT CHARrrABiE TRUST Opln We have audited the financial ststements of The Ernest Kleinwort Charitable Trust (the 'Trust'l for the year ended 31 March 2025 which comprise the statement ol fi'nancial activitres. the balance sheet. the Statement ol cash flows and notes to the linanctal statements, tncludin8 significant accounting policies. The fi.nancial ￿porting framework that has been applied in thetr preparation 15 applicable law and United Kingdom Accountin8 Standards, including Financial Reporting 5randard 102 The Financiol Reportsng Stt7ndord oppliccrble in the UK onLI Republic of irelund (United Kin8dom Genefally Accepted Accountin8 Practice). In oyr opinion. the fi.nancial stsEements'. 81ve a true and fair view of the state of the charity's aftsirs as at 31 March 2025 and of its incoming resources and application of resources, for the year then ended.. have been properly prepared In acctsrdance with United Kingdom General￿ Actepted Accounting PraCts￿,. and ve teen prepared in accordance with the requirements of the Charities Act 2011. B•sls for optnion We conductèd our audit accordance with International Stèndards on Auditing IUKI IISAS IUKII 8nd applicÈblt law. OUT responsibilities under those standards are further described tn the Auditor's responsibilitiesfor the oudit of thefinon¢iol srotements secnon of our repon. We are Independent ol rhe Trust in accordance with the ethical quirements that are relevant to our audit of the fi.nancial ststements in the UK. including the FRC'5 Ethical Standard. and we have fulfi'lled ovr other ethical re5ponsibiliDes In è¢cord3nce with these requirements. We believe that the audit evidence we have obtained is svfficient and appropriate to provide a basis for our opinion. Concluslons relaling to going concern We have nothing to report In respect of thé following matters in relation to which the ISAS IUKI r￿Ul￿ us to report to you where.. the Trustees. use of the 80in8 concern basis of aC￿￿ntIn8 in the preparafjon of the financial statements is not appropriate. or the Trustees have not disclosed in the h"nancial staternents any identified material tsncert3inties that mav cast s18nifi.cant doubt about the Trust's ability to continue to adopt the goin8 concern basis of accounting for a peric￿ of at least twelve months frorn the date when the linancial statements are authorised for issue. Othèr Informadon The other information comprises the tnlormètion included in the annual report other than the financial ststemenrs and our auditor's report thereon. The Trustees are responsible for ihe other information contsined within the ar*nual reptsrt. Our opinion on the fi.nancial statements does not cover the other informaton and we do not express any form of assurance con¢lu5ion thereon. Our respon51bility is to read the other inbrmatr'on and, in doing so, Consider whether the other information is materially Inconsistent with the financial ststements or our knowledge obtained in the course ot the audit, or atherwise appears to be materially rnisstated. If we identify such rnaterial in¢onslStencies or apparent material misstatemenrs, we are required to determine whether th15 gives rise to a material mi5$tstement in the financial statements themselves. If. based on the work we have performed, we conclude that there 15 3 matefial rnisststement of this other informatron. we are required to report that fèrt. We have nothin8 ta report in this regard. THE ERNEsf KLE114WORT CHARifABLE Tftusr INDEPENDENT AUDtroii's REIY)RT IcoKfiNU£OI TO THE TRusfEES OF THE ERNEST KLEINWORTCHARITA8LE TRUST matte￿ on which wt •re rtqul¥ed to report by exceptl We have nothing to report in respect of the following matters in r*lat5on to which the Chartties (Accounts and Reportsl Regulatiens 2CK)8 require us to reprrt to you if. in our opinion-. the informatr.on 8iven in the financial ststements is tnconsi5tsrit in •ny rnaterial respect with the Trustees. report., or sufficie￿t •c¢oufitin8 f¢cofds have not been kept.. or the flnancial statements are not in agreement with the accounting recryds- or we have not received all the tnformation and explafiations we require for our audit. ResponslbllltI￿ olTnntee5 As ex￿&￿￿ed more fully in the staternent of Tru5tees' responsibilities. the Trustees are respons*ble for the preparatlon of the financial ststements and for bein8 sathsffed that they gibt a true and fair view, and fo¥ sueh internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatemènt, whether due to frdud or error. In preparin8 the financval ststemenrs. the Trustees are responsible for asse55in8 the Trust's jbility to conts.nue as a 80ing concem, disclosin& as applicable, matters related to going Con￿rn •nd ustn8 the going corKern basis tsf attounting unless the Trustees either intend to cease operations, or h•v• no T••listi¢ •lt•¥ftati* but to do $0. Audltor's mspon￿bIlItIeSfr￿ the audlt of thefinandal ststements We have been appointed as auditor under sertion 144 of the charl￿eS N£t 2011 and feFQrt in accordano with the Act and rele*7nt rngulan"¢JttS made oi having effertthereunder. Our objertlve5 are to obtasn feasonabl* assurnnee about whethef the financial ststements ?$ a whole a￿ free frorn material misstst+menL whether due to fraud or er￿￿. and to issue an audttor's report that includes our opinion. Reasonable assuranee is a high leN*l of assurance but is not a guaT3nteÈ that an audit con(kncted in accordance with IS4s IUKI will always detect a rnaterr41 misstatement when it exists. Misststemtnts an arise from fraud or erfor and are considered rnaterial if. individually or in the aggregate, they could reasonabty be expected to influence the economic decisions of usets tsken on the basis ot these financial ststements. Irwul8flties, includ4n8 fraud. are InStan￿S of nonn of lunds: Fund balances at l April 2024 3,170,119 74.396.797 77.566,916 2,739.653 68,261.725 71,001,378 Fund balance5 Jt 31 M•ich 2025 2,888,214 75,074.455 77.962.669 3,170,119 74.396,797 77,566.916 The statement of financial activities includes all 8ains and losses recognised In the year. All iKtsme and expendit￿le dtri¥e from contilluing atttvires. 10 THE ERNEsf KLEINWORT CHAR￿ABLE TRUST BAIA14CE SHEEr A5AT31 MARCH2025 2025 2024 FIMed asgeu Investments 75.074.455 76.050.788 Current assets Debtors Cash at bank and in hand ia 83,140 1826,418 86,997 1.472.042 2,909,558 1.559.039 Credltors: am¢>u*ts falling wlthkn on• year 14 121.3441 142,9111 Net turrent •tsets 2.888.214 1,516.128 Total assets less cuuent IlabSllU•s 77,962,669 77,566,916 The hnds of ihe Tryst Endowrnent fund5 Unrestrirted f4nds 15 16 75,074,455 2,888,214 74.396,797 3,170,119 77.962.669 77,566,916 Thè Hnantial statements were approved by the Trustees on . TyTrdall Ichairmanl Twstee THE ERNEsf XLtINWORT CHARITABIE TRusr srATEMENf OF CASH FLOWS FOR THE YEAR EPIDED 31 MARCH 2025 2Q25 2024 Notes Cash flows from operntlng acbvTrles Cash absorbed by ope¥anons 19 14,854,939> 12,672,5(X)I Inve51In8 actfj¥rttes Purchase of investments Pr¢xeeds lyom disposal ol in¥estrnenl5 Investment incorne received 17.346,3941 9,134,348 2,42S,E4)1 113.992,7651 15,3(X),314 1.272,740 Net cash generated from Inves￿ng actl¥ltles 4,203.555 2.580,289 cash used an financing artiviltes Net decreast In t•th and r35h 84ulval•nts 16SI.3841 192.2111 Cash and cash equivalents at be8inning of year 5,163,661 S,255,872 Cash and cash equivalents ai of year 4,512.277 5,163,661 Aelating to: Cash at bank and In hand Short term deposits incSudÈd in current asset investments 2,826.418 1,472,042 1.685,859 3,691.619 12 THE ERNEST KiEINWOftTCHARITA8LE TRUST NOTES TOTHE FINANcIAL￿ATEMEP￿￿S FOR THE YEAR EAIDEO 31 MARCH Z025 tounln8 poHtle5 Charlty Inlorrn•tltyi The Ernest Kleinwort Charitrwe Trust was a registered charity govemed ty a constitution d•ted 17 December 2021 las amended 31 January 20241- The charity r¥i5tered as a CIO on 17 De¢ern￿r 2021 with funds be4ng transferrtd from th¢ oriein41 Twst on 25 May 2022. at whith time the original Trust wa5 rernoved from the Register. 1.1 ￿￿￿ntIng COA¥entlon The financial 5tstemettts have been Pfephred accordancè WFrh the Trust's governing document. tPe Charibes Act 2011, FRS 102 Yhe Financial Reporbng Stsndard applicable in the UK and Republic of Ireland- I'FRS 102.1 and the Charities SORP Atcounttng and Reporting by Char¥ttès.' Staternent ol Recomrnended practi￿ applicable to ch•rit5es prep•giry their ac£ounts in accordante with the Financ￿1 RewrtlnR Stsndafd applicable in the UK and Republic of Ireland IFRS 1021" (effective l January 2019). The Trust Is a Public Benèfit Entity as defined by FRS 102. The financial ststements have departed frrjm the CharitiÈS (Attounts and Reports) Wulations 2008 only to the extent required to provide a true and fair view. This departu￿ has invofved followin6 the Statement of Recomrnended Pfathce lor charitses applying FRS 102 rathef than the version of the Ststernent ol Recomrnended Prncttt• whKh is referred to in the Regulatlons but whKh has since beèn withdravm. The ffnaneial statements are prepared in sterfing, whKh is the functional currency of the TTUSt. Monetsry amouftt5 In thest Hrnanclal stat•ments are ro*Jnded to the nearest £. The financial statements have ￿en prepared undèr the histortcal eost convendon, modified to incljde certain financ¢al instryEments at fair value. The principal actounting poI￿leS adopted are set out telow. 1.2 Goln8 ¢oAorn At the time of approvlng the finaftcial rtatements. the Trustees have a reasonable expertation that the Trust has adequate iesources to continue in 0￿raliOnaI existence frjr the foreseeable lututs. Thus the Tnsteés continue to adopt the 601r￿ ￿ncern basi5 of aC￿U￿ting in pre￿rIng the fi"nantial sratements. 1.3 Charltable funds Unrestritted fuf¥ds ère available for use at the discretion of the Tru5tets ir¥ furtherdnte of their charitablé objecrives. Endowment funds are subjert to specilic conditions by donors that the ca￿trI must be maSntsined by the Trust. 1.4 Incom• In¢orne is rec￿niSed when theTrurt is legally entrtled to it after ary perfrjrmance condilions have been met, the amounts can be meastsred reliatay. and it is probable that income will be received. 13 THE ERNE￿ KIEINWORT CHARITABLE TRU NOTES TO THE FINANCIAL STATEMENTS ICONTINUEOI FOR THE YEAR ENDED31 MARCH2025 Accouniln8 pollcles Iconllnuedl Interest on funds held on deposit Is included when receivable and the amount can be rneasured reli8bly bv the charity. this is normally upon nonficatitrn of the interest paid or payable by the bank. Dividends are recogni5ed once the di¥￿dend has been declared and nottfi"¢aDon has been received of the dividend due. This IS normally UFX)n noDh"cation by our Investfflellt rnanaKers of the dividend yield of the investrnent porrfolios. Income tax rewverable In relatlon to investment incorne is recognised at the time investment incon% is receivable. 1.5 Expendlture Liabilities are reco8nised as expenditure as soon as there is a legal or constructr.ve obligation committing the charity to that expendtture, it 15 wobable that settlement will be ￿qUired and thè amount of the obligètson can be measured reliably. All expenditufe Is accounted for on an accruals ba51s and has been Included under expense categories rhat aggregate all cts5ts for allocatFon to acrivitres Where costs cannot ￿ directly artributed to parttular actrvitse5 they have been allocated on a ba515 consistent with the use of the resources. Gr8nts payabse are charged in rhe year when the offer is made ex¢ept in those cases where the offw is conditional, such 8ranr5 bein8 recognised as expenditure when the conditions attaching are lulftlled. Grants offered Subject to conditions which have not been met at the year end ale Doted as o commirment, butnot accrue.d as pxpenditure. 1.6 Fpxed asset Invesknents Fiyed a55et inve5trnents are initially measured at transaction price excludin8 transactron costs, and are subsequently measured at falr value at each repor)n8 date. Changes in fair value are recognised net income/lexpenditurel for the year. Transaction costs are expensed as incurred. 1.7 Cash and ￿5h equlvalents Cash and cash e9￿1ValentS iKlude ush in hand. deposits held at call with banks. other short-terrn investments with tsriginal maturities ol three months or less, arxl bank overdralts. 1.8 Flnanclal Instrurnents The Trust has Èltcted to apply the provision5 of Sectton 11 'Basic Finoncial InstTurnents' and Section 12 'Other Financial Instrurnents155ues' of FRS 102 to all of it5 fi-nancial Instruments. Financial Instruments are recoenised in the Trust's balan￿ sheet when the Trust becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offsÈt. with the net arnounts presented in the Nnancial st3tements, when there is a le8ally enforceable ri8ht to set off the recogni5ed amounts and there is an intention to settle on a net basis oi to tealise the asset and settle the l*ability simultantouslv. 14 THE ERNEST KiEINWORT ClIAR￿A&LE TIIUST NOTES TO THE FINANCIAL StATEMENfs ICWINUEDI FOR TIIE YEAR ENDfD31 hlARCH2025 Accountln8 9olkle5 Icontlnuedl 8askfinmcld(tssets 8asic financial assets, which include debtors and cash and bank balances. are inirially measured transaction price including transaction costs and are subsequently earried at amortised cost usin8 the effective ine¢r•st m*th¢d unless the arr•n8ement constitutes a financin8 tran5actiort, where the tr•nsactic)n is measured at the present value of the futu￿ weipts discounted at a rnarket rète ol interest. Financial assèts Classified as receivable within one year are not amortised. Boslcfinrmcld Ik7bllllles 8asic financial liabilities, includtn8 creditors and bank loans are initially recognised at transaction price unless tht arrangement constltutes a finan¢ine transaction, wheTe the debt instrurnent is rnea5ured at the P￿sent value of the future payments discounted at a market rate of tnterest. Financial Ilabilities classified as payable wlthln s)ne year are not amrtised. Debt instruments are subseouently ¢arr￿d at amortlsed cost. using the effertlve interest rate method. Trade treditors are oblig•kn"ons to pay lor goods of services thot ha¥e been acquired in the ortlin¥y course of operatyans from SLtppliers. Amounts payable are classified as Cur￿nt liabilities if payment is due within one year or less. If not, they are presented a5 noTrcurrent 14abslitfes. TTrde ereditois are recognlsed inittally at trarnsathon prlce and sybsequenily measured at artvrtised cosi usin8 the effective ¢nterest method. Derecoqnllkn olJlnMclolllabllldes Financial liabilities are dereco8nised when the Tr*Jst's contractual obli8ations expi¥e or are discharged or cancelled. 1.9 employe¢ beneffts The c05t of any unused holiday entit￿meTht is recognised in the peritrd in which the employee's seNices are recdved. Termination benefits are recognised immediatsly as an expense when the Trust is demonstrably committed to terminate the employment ofan employee or to provide termination ￿nefits. 1.10 Fortlgn achangè TAnsacuons in Currencies other than wunds sterlin8 are recofded at the rates of exchan8e prevailin6 at the dates of the transactions. At each reportin8 end date, monttary assets and liabilitles that are den1. and another Is joint CEO of. Lion Landscapes to whom a donatton of £5,CKJO12024.. £20.0001 was made durin8 the financial year. The Trustee5 were not involved in the d￿lSIon io make tho* donatrons_ One of the Trustees has an ir%tere5t In London Youth to whom donations totslling £34.23012024.. £nill were made during the financial year. The Trustee was noi involved in the decision to make those donations. -22- THE ERNEsf KLEINWORTCHAR¥fAOIE YRusr IOTE5 TO THE FINANCIAL STATEMENTS {CONT114UEDI FOR THE YEAR ENDED31 MARCH2025 19 Cash generated from opefttions 2025 2024 Surplus for the year 2.624,183 6.722,845 Adlustrnents for.. Investment income recognised in 5tstement of financial athwtyes Foreign exchange drfferences (Gainllloss on disposal ot investments Fair value gains and losses on investments 12,425,6011 11.272,7401 12.228,4301 1157,3071 1307,2761 143,808 I2.5￿.105} 18.087.8451 Movernent5 in workin8 capitrl.. Decre45ellincreasel in debtors IDecrea5el in creditors 3,857 121,S671 114,4411 16.8201 Cash abs1)rt￿d by oper*lons 14.854,9391 12.672.5CQI 20 AnIty￿S 01 than8es In netfvnds The Trust hjd no m*tsri¥l debt durin8 the y*ar. -23.