Smalles Goldie Group CREATINfj ADVATr4TAGE REGISTERED CHARITY NUMBER.. 225356 The Sir James Reckitt Charity Financial Statements 31st December 2020 ICAEW CHAR TERED CCOUNTANTS sly4ws GrP k8atratthA9 namèol Go&**P4rtMishiP.
The Sir Jame5 Reckitt Charity Content5 of the Financial Statements for the year gnded 31st December 2020 Page Rèference and Administratlve Detalls Report of the Tru$iees Report of the Irtrdependent Auditors Statem8nt of Financial Activltles 10 Balanet Shoet Cash Fl¢)w Staiement 12 Notes to the Cash Flow Statement 13 Notes to the Financial Statements 14 to 27
The Sir Jamès R•¢kitt Ch•rity Ref¢rence and Adrnlnlstratlve Detalls for the year ended 31st Oecomber 2020 TRUSTEES Mrs S Craven Ichairmanl. Mr J P Alherton" Mr R M Gibson ' Miss E R Holl" MrJHHolt" MrPJHHolt" Mrs C J J8nningS Mr O J Jennings Mr C A M8xsled Mr N 8utler-Watts Mrs M Fisher" MrETCUplon- Ms O Upton MrRJUplon" MrSEUpton' Mr S J Uplon Mrw Uplon (retired 31.12.20201 (appointed 3.06.20201 (appointed 1.01.2020} ' tnErntser ol thE InvesimenLSuEkethnmiiteel I" Nominated Pickenng & Hull Area Meetiw ollhe RelwJiou$ So¢iety ol Friends) PRINI knlrA' AnTr Willerby Hull East Yorkshire HU106ES REGISTERED CHARITY NUMBER 225356 AUDITORS Smalles Goldie Chartered Accountsnts StatsJtory Auditor Regent's Court Princess Street Hull East Yothshire HU2 8BA BANKERS HSBC 3-4 Jameson Street HU1 3JX SOLICITORS Rollits Forsyth House Alpha Court Monks Cross York Y032 9WN INVESTMENT ADVISORS Quilter Cheviol Limited Senator House 85 Queen Vi¢lorla Str881 LoncSon WC2B 6AN Pagè 1
The Slr James R•ckitt Charity Report of the Truste•s for th? year ¢nded 31st December 2020 The trustees present their report wth the financi81 statements of the Charity for the year ended 31st December 2020. The trustees have adopt8d the provisions of the Statement of Recommended PrA¢li¢e ISORPI'Accounting and ReFKJrting by Charities. in preparing th8 annual report and financ481 slatements of the charity. The financial statemenis have been prèpaied in accordance with the accounting policiès $8t out in note$ lo the accounts and comply with the charity's goveming document, th8 Charities Act 2011 and Accounting and Reporiing by Charities.. Stalemenl of Recommended Practice applicable to chatities preparing their accounls in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published in October 2019. OBJECTIVES AND ACTIVITIES Objectives and alms The principal object of Ihe Charity is Ihat ils i108 be applied to such chariiable purrx)ses as the trustees think fil and which are for the public benefit. In accordance wtth the lounderf$ wishes, causes which are Considered lo be of 8 warfike character are excluded,. and some priority is given to Quaker causes wherever they may be. This 8mphasis on Quaker causes reflects the lacl that the Re¢"tt family had been mgmbers of the Society ol Friends almost from the start of the movement. The Charity welcomes appeals from Quaker organisations and seeks to fulfil this priority objective by supporting individual Quakers, Quaker schools, Friends, Meètings and projects initiated by Brilain Yearty Meeting. A high priority is also gwen to caus88 airned al bringing benefit to the people of Hull and East Yorkshire. The founder was sponsible for many good work5 in th8 local area during his life and his foundab.on ol the Charity in 1921 ensUd that Ihese would continue into the future. Consequently, the Ch8rity 18 able to satisfy this priority objectiv8 through its support ol a wide range of local community initiab.ves and projects. The alleviation ol poverty,. support for 8gencies tackling homelessness and substance dependerw., and the provision of facilities and opportunities for young people, are examples which feature prorninently in the Charity's local giving. How8v8r, the Charity does not confine its grant making just lo social issues of this kind. Viewing their role very widely, th8 trustees are just as likely lo support a residenb.al experience for local school children, a Christmas party at a loG41 community centre, attendance at an intemats.onal lambor&8 ft)r IcK81 scouts and guides. or the wod( of the many black and ethnic minority support groups which have been eslablish8d locally in recenl years. A natural disaster overseas or a humanitarian crisis there might well attract a grant. parttularfy if an appeal is sponsored by the Society of Friends ur an organisation such as Save the Children or the British Rod Cross. In VIewIng and -stang th85e purposes and aims, ference has been made to the Charity Commisson's general guidance on public benefit. Alltiwng for the Quaker origins of the Charity and its empha%5 on good wo5 wiihin Hull and Easl Yorf(shlre, it M81n$ true that its grant rnaking is made widely available and, as Such. 18 for the public benefit. S5gnlficant actlvltles The trustees a pleased to report that 2020 saw continued success in meeb.ng thg main aims of the Charity in spite of difficumies creatod by th8 Cowd-19 emergency. Many ol the grants which We mado during the year supported the trustees, aim of bringing benefit lo the people of Hull and East Yorkshire, parbcularfy 81 the lovel of local communiligs. The following few 8xamples illustrate the range of the Charity's local grant makn'ng during 2020 and its concem for those in troubl8 or in need. Trustees gave further SUPPOrt to Emmaus, Hull to 51JPPOrt its rough sleeper outreach programme whlch. in parthership with Hull City Council and other agencies, engage5 wilh horn818ss people on the streets of Hull and Bridlington. The East Hull Foodbank which delivers emergency food along with support and advice for local families in crisis received a grant. The University ol Hull was awarded an additional gr8nt to SUPPOrt its work in combatting the Covid-19 pandemic in the Ial area through the production of f8¢e shields for NHS and social care workers and the selling up of a remole training programme in critical carè pracli¢e for local healthcar8 workers, retired nurses and doctors and volunteers. A grant was made lo Teeth Team, a successful school- based programm8 estsblished by Ial dentists. In recogni$ing that tooth decay is Ihg most common chronic illness in children Iwing in areas of social and economic depnvation, the project delivers a programme of 5UP8rvis8d looth brushing, uoride vamish and education. Grants were made to OCD Support which rneets al Hull Quaker Meeting HoLsse and provides a safe and supportive environment for ihose affected ty Obsessive Compulsive Disorder, and to th& Tuesday Aft9moon Social C8rers Group in Hull which offers supwrt and friendship for those caring for partners diagnosed with a serious illness. The Viking FM Cash for Kids scheme gives financial suprK)rt lo Icral families in need who are r8ferr8d by social services, ¢hildren's centres and women's refuges. Trustee5 recognised the need fo¥ ils seNices had in¢reased as $ result of the Covid-19 emergency and approved a grant to support 115 work. Support was given to the work ol Railway Children whose 88feguarding projecl in collaboration with British Transport Poli is airned at idents"fying and h8lping young people who are escaping Irom difficult arcumstances and might find themselves on the stet$. The project wa5 originally launched at Manchester Piccadilly but now extends into Yorkshire including Hull Paragon station. Page 2
The Sir Jam•s Reckllt Charity Report of the TTUSteg for the year end•d 31st December 2020 OBJECnVES AND ACTIVITIES l¢ontinLted} Signiflcant activitles Icontinuedl Th8 village ol Leven, near Bev8rf8y, benefitted from Mo grants in 2020. The Leven Playing Field AsscKiab'on was awarded 8 grant to help it improve the site and provide better drainage and disabled a¢¢ess. The nalure parf( run by Lev8n Youth Club received a grant to help il improve safety on the sile and provid8 electricity to the log cabin used for educational purposes. The Hull-based charity SEED (Eating Disorder Supwrt Servioesl works to ensure that people wrth a rdnge of 881ing disorders receive the help they need through monthly support groups and nutritional self-help groups. A grant from the charity helped il cover its annual core costs and maintain ils dedicated resource rcK)m. The HEY Smi18 Foundation r8C8ived the charitv's SUDL)Ort to h81p provide much needed SpIte br¢aks for tèn 10&21 ndY families through its 'Srnile by th8 Sea, project., whilsl Blind Veterans UK was awarded a grant in support of its work in the rehabilitation, training and care of former service men and women trying lo adjust to sight loss and aiming for ind&pendent living. The South Bransholme Community Associats'on in Hull. British Red Cmss (Hull and East Ridingl. KIDS Hull Family Centre and Dove House Hospice 811 r8c8ived further funding support in 2020, 8$ did Sight Support Hull and East Yorkshire, East Riding Voluniary Action Services IERVASI, Hull Council of Disabled People and the Home-start projects in Hull and Goole & District and the Duke of Edinburgh Award Scheme run by Hull City CoLJncil. The national charity IPSEA Ilndgpendenl Panel for Special Educalionl whid) works with pantS to ensure th81 children With special educational needs receiv8 the tailored educational programme lo which they a entilled, was awarded a grant lo support Its work in the Hull aa. The Charity's support for the growing number of black and ethnic rninority groups in Hull was evidenced in 2020 by 8 fvrlher grant to the Humber All-Nations Alliance which provides 8 wid8 rang8 of services for the benefit of members of the Black and Minority Ethnic Communities In Ihe local area, particularfy aimed al the r8li8f of poverty and hardship and the promotion 018quality of opportunities. Grants were also made lo the Hull Open O¢x>rs Pr(>ject and to Bora Shabaa Refvge8 Cornmunity Organisation. t)oth of which provido a range of support services. social events and workshops to help lUgeeS and famsli85 $etUe Into their new life and to prornote inclusion and partlClP8tion. The new Welcome House, established wrth the help of Hull City Council, was awarded 8 substantial grant to help it develop into 8 saf8 point of Contact for refUgS and asylum seekers, stsffed by experienced workers and volunteers and open six days a w88k. As these exatnples demonstrate, a larg8 nurnber of local charitable organisations acrtsss a very wide range of worthy causes have continued to benefit from the giving of the Charity during 2020. The Quaker objects'ves of the Charity were promoted by a ggnificant numbtrr of grants made during the year over and above their regular support of Britain Yearfy Me8ting with an increased grant lo support its core aclivib"85 and Bncourage further project developrn8nt. The Charitls support for Quaker education was confimied with grants to Sibford School, Banbury.. Sidcot School, North Sornerset., Leighlon P8rk. Roadiro., Ackworth School, Pontefr8Ct'. and the Iwo Quaker schools in York, Bootham School and The Mount. Grants Were also fflade lo Woodbrooke Quaker Study Centre, Young Friends General Meeting, West Midlands Quaker pea Education Proj8Ct and the Ulsler Qu8ker Servic8 Committee. The Charity's support of the QLJaker Council for European Affairs was maintained in recognition of the value of it5 work in promoting p9ace and human ri9hts and enssjring a Quaker Vol is heard in these troubled b"mes. The Charity conb.nued its suppori Cbf Quaker Social Action which offers 3 range of services to th058 who are managing on low incornes and strugglin9 to pay for essentials without getting into financial diffu.es. In addition to their regular support of Hull Quaker Meetlng and the Hull and Pickering Quak8r M88ting, tfuslees approved an addilion81 gr8nt to Ihe latter to help pay lor a vital repair to the healing system al the Pickering Meeting House. Granis were also made lo assist with building irnprovemenls at Scart)(>rough Aleeling House and at the Rookhow Meeting House in West Yorkshire. Trustees agreed to an earlier than pl8nned grant payment to Quaker Tapestry to help il cover ossential expenses gs the Covid-19 emergenoy had drastically affected its income flow. Quaker activities for young people in the UK were 5UPtx)rted in 2020 with a furth8r grdnt tr) yorkshi Friends Holiday School. Al their November meeting, trustees received a pSentatiOn by two mernbers of the QLJaker United Nations Offe (Jonathan Woo118y, Director and Lindsey Fielder C(KJk, representative for Climate Change). This was in support of an appeal for funding to support th8 eore activities of QUNO. It was agreed that OUNO would provide detailed finanoial plan5 lo support ihe appeal and that a sub-committee of trustees would 8SS8SS these and Make recommendations to the full Iruslee body. The willingness of the Iruslees to support worthwhile overseas causes was evidenced in 2020 by their continued suptx)rt for Farm Afn"ca which promotes improved fatming efficiency so that African farmers can improve iheir crops and build lor the future. Following lurther enquiries by iwo ol th8 trustees, it was agreed that Int8matsonal Rescue Committee should be awarded a grant in response lo ils appeal on behalf of the cibzens of Beirut suffering in the wake of the devastats'ng explosion at the port f8¢ility there. Page 3
The Sir Jam•s R•ckitt Charity Report of the Trustw8 for the year ended 31st December 2020 OBJECTIVES AND ACTIVITIES Icontlnuedl Slgnificant actlvltles l¢ontinuedl The Charity continu85 to host monthly meetings of the Hull Granl Makers Consortium which considers cases ol individual need presented by many local agencies such 8s Social Services, the Salvation Army, the Hull Domestic Abuse Pmject, the Teenage Pregnancy Support Servi¢e and many of the local Children's Centres. AroLJnd 40 applications a considered at each meeting in collaboration with the Hes4ewood Children's Trust which was a Go-founder mernber ol the Consortium in 1995 Consortiurn grants are generalw made in the form of vouchers to be exchanged at loca1 suppliers for an ilern or fumiture or household equipmenl. This part of the Charity's work clearfy satisfies its aiTn of h81ping to alleviate povety locally", and the benefits brought a direct and tangib18. Buying basic fumiture for a homeles5 individual being moved inlo accommodation.. replacing a broken washing machine for 8 har8&8ed single mother living on benefit.. or hfjlping a victim ol domestic abuse relocate to a safer location, ar8 decision5 which make a real dIffenCe to the lives of the Charity's beneficiaries. The Charity made 318 such grants to individuals and families in need during 202012019.. 3861 at 8 oost of £93,88012019'. £105,088). One ol the trustees attends each rn881ing of the Consortium and the trusL8e5 ar8 given a full report on the work of the Consortium at their twice-yearfy rn8etings. The trustees regard this contribution to the alleviation of poverty in Hull as being particulady important. It is a Glear demonstrdtion of one of Iha Ch8riVs main purposes being carried forward for the public benefit. During 2020 trustees continued their pro9fdrnme of enquiries into organisations which are in receipt of granis from th8 Charity, although the coronavirus emergency meant that these enquiries had lo be conducted mostly by telephone rather than by personal vi5Fis. Each year ar(Trund 60 to 70 organisatrons ara the subje¢l ol an enquiry by a trustee whose purpose is to check on the well-being and needs of each grant recipient and to confim their prop8r use of the Charity's support. In 2020 these enquiries included ChurGh Hotneless Trust which provides social housing ill Hull and has a large presence In thè Bransholme a3.. Hull Children's Adventure Society which provid85 holiday breaks for Hull families who mwJht otherwise be unable to afford one,. and Candlelighters Trust Fund which is based at Leeds General Hospital and supports famil*s who have a child suffering from cancer. Other organisations In 2020 which w&re the subject of a trustee enquiry included Di5abtlity Sports Yorkshire which does excellent woth in provKling sporting opportunities for disabled peopl8 through coachir in schools and athletics events", Hull University Union Community Action IHUSSOI which offers opportunities for student voluntary service in the l(Kal community especially with vulnerable peop18 and in c8re homes., and the Club Hous8 Cornmunily Centre in East Hull which is situated in the Garden Village, built in 1W7-1 and the 'brainchild' of Sir James Reckitt founder of the Charity. All visits and enquiries rnade by trustees are reported lo the fvll Iruste6s' meetings where r9coFnrTTendalions for fvture action and support are con&ed. In November 2019 it had be8n 8greed that the independent consultancy t8am ol John Gray and Rosie Camall and the trustee working paty Gonlinue their lask of investigating the most effertive ways of promoting Quaker values through support of Quaker education begun in 2018. 11 was decided lo explore th8 p05sible development of a GCSE-accrediled Peace Education course which might be initially developed and piloted in collaboration with the Quaker schoo15. It was aged thal the working party and consultancy team be asked to tak8 thi5 work further, and a budget or £15,0 to support this worf( was approved. Unfortunately, the Coronavirus 8m8rg8ncy then intervened, and Ihe committee concluded that it was not feasonabl8 lo expect teachers to give much time and thought lo 8 new in-depth curriulum project in the circumstanc8s. Instead, Ihe commillee is now proposing an inform81 sludent-focussed approach to the project involving internctive online sessions open lo students from all the Quaker sch1$. This will enable students to coniribule lo th8 scope and ¢onlonl of future peace educatson curriculum developrnenl and be a good way of keeping the project g0Sng. It ha5 lon9 been a wish of the trustees to est2bllsh stronger links wth Reckitt Benckiser Group plc Inow brarTrded as R6ckittl which 15 the successor company lo the family firm from which the Charity emanated. Good progress had been made in 2019 with a joint meeting of trustees and key R8ckitt personnel and a guided tour ol the impressive new facilitie5 built al the factory sile in advance of the official opening. Unfortunately, once again PrOg$S was disrupted in 2020 by the coron8virus emergency. Plans for the Novemb8r trustees meeting to be hosted by Reckitt had lo be Cancelled and the monthly Consorts'um meetings, again hosted by Reckitt, have not been held there since Marcj). The Charity's policy documents with gard to investrnents, financial prOdureS and grant makiro were reviewed in November 2020 and several small aller8tlOn5 made lo tske account ol changing circumstances and practices. Page 4
The Sir Jamos Reckltt Charity R•port of the Trustees for the year ended 31st December 2020 OBJECTIVES ANO ACTIVITIES l¢¢)ntinuedl Slgnificant actlvlties Icontlnued} The frequ8nl references lo Covid-19 so far in this report confirm the inevttable impact it h88 had on the woth of the Charity during 2020. The bNo full rneeting5 of trustees in April and November had lo be held remotely. Sirnilar arrangements had to be made lor the fft meetings of the1nvestment Cornrnittee and most meetings of the Consortium. Whilst enabling the work of th8 Charity to contsnue in a aSonablY efficient rn8nner, the loss of direct personal inleraclion 1$ a source ol regret. In the eady days of the pandemic, ihe Charitls investment managers (Quilter Cheviotl were asked lo conduct a thorough review of the Charitv's rtfoliO and the irnplicalions of the emergency for market valu95 and income streams. Acting on the advice from Quilter Cheviol that some reduction of income was inevitable, rt was decided to exercise some caution when estirnating the Chanty's income over the next year and wh&n Considering the award of grants. Th8 on-going ernergency a150 raised questions about how to (Jeal with new appeals oth8T than on the nomal six-monthly rneeling pattem. It was becoming clear at Ihat point, that ¢Ofonavirus-related appeals were starting tu be psented from charities whose own work and inctsme was being thr8atened. It was, therefo, decided lo establish a SL5b-comrnittee of trustees. with a budget of £150,000, to consider such appeals. This sub-committee m81 online in June 2020 and approved $8V8n grants at a total spend of £50,500. A further meeting planned for Seplemb8r 2020 was cancelled because, for whatev8r reason, the number of coronavirus-lated appeals had significantly dUCed in number. Grantmaklng The Charity's grant guidelines 8re available on request and on-line and give practical advic8 to grant seekers to help them rnalch their funding appeal to the expectats.ons ol the Charity. The Charity receives fnany 8pplications for Ihe fvnding of proie¢ts dunno the course of 8 year. These are assessod lo ensufe compatibility with the Charity's guidelines and presented in surnmary lom for the decision of trustees at their Iwiee-yearly meetings. Although the trustees prefer lo make grants lo regisler8d chantses, Ihey will rnake grants lo non-registered charib"es. They will also make grants to individua15, particularfy Ihose living in the Ial area and who arè In need since the reli81 of poverty is an important conc8m of the trustees. An analysis of grant payments is shown in note 5 to financial 5tatern8nts and provides a useful summary of the areas in which the trustees concentrate Ih81r 5UPlXJrt. A more detsiled analysis showing organisations CeivIng support of £2,000 or more is shown in note 17 to the financial statements. FINANCIAL REVIEW Principal fundlng sources At 31st De¢ernber 2020, ihe value of the Charity's investment portfolio was £52,145.03912019'. £49,139.215}. Th8 Charity's investment income for the year ended 31st D8cember 2020 was £1,575.521 12019.. £1,541,182). After administratlV8 cosls, including support and governance costs, the balance available for distribution was £1,507,931 12019.. £1.457.8221 and ihe Charily dislfibuled grants totalling £1,273.89612019'. £1,341,717). Invg$tment policy and obj¢ctiv•s The investment objective of the trustees is to maintsin a continuing increase in the di5po$able income ol the Charity al a ral8 equal to, or gater than, the rate of inflaiion las measur8d by the Retail Price Index), whilsl preserving the real value of their endowrn8nt fund in secure investm8nts. The rnanagement ol the Charity's portfolio is undertaken by Quilt8r Cheviot Investment Managernenl Limited IQCI. A sub- comrnittee ofthe trustees- the Investment Committee- supervises th8 work of QC and meets regularfy with them in order to review and adjust the portfolio. With regard lo reslriclion in Investmenis, the truste85 have resolved that 'no investment shall be made in th8 stock5 or sharès of any company, the aims or products of which, in the Iruslees, opinion a of a 'si9nifieant wartike nature In the year under review, the capital value ol ihe Charity's portfolio rose by 6.2¢/o compared with 12.5°/¢ de¢lin8 in the capital relum of the FTSE All Share Index. The income retum of 3.0°k me8ns that the tr)tal turn for 2020 was a net increase of 9.3°k. This compares to a toial return of 2.2010 for the MSCI PIMFA Growth and a total decline of -9.8 /. for the FTSE AII Share Index. Reckitt Bencki8er Group, which rernains the largesl single pogtion within the portfolio, delwered a to181 r8turn 019.5¢/), demonstrating the demand for its products driven by the arrival of the pandernic. Elsewhere, strong, maTkel beating retLJrns ffom North America, Europe and Asia ensured an all-round successful performance. In particular wiihin North AmerKa, Amazon and Apple were standout lealures, delivering total turnS in excess of 70ts/0'. similar to R8, both proved benefiuaries of consumer behaviour during the pandemic. In the perioty ahead, the managers exp8¢t to See 8 8hift in focus towards opportunib'es across Asia and the Emerging Martets. Rès•rves policy Trustees have a reserves policy which aims to maintain unrestrict8d funds, whKh ar8 the fr8e r858Tv8s of ihe Charity. at a rninimym level. This is to allow sufftcient funds to be available for necessary govemanGe and support costs," to honour eKiStiro eommitments and about three months routine grant rnaking.. and to provide for emergency gr8nl applications. The level of re*rve$ at 31st Decgmber 2020 stood at a surplus of £2,441.48912019". surplus of £2.101,5331. Page S
The Slr James R•ckitt Charity Report of the Trust8 for th• year ended 31st December 2020 FUTURE PLANS Over the next twelve months, the Irust8e8 will hold two full meetings lo discuss grdnl applications and the management ol the Charity. The Inv8Stm8nt Committee will rneel Nwce with the Charity's investment managers and consider adjustments to the portfolio. The trustees will ¢ontinue their programme of enquiries into charii85 and organis81ions which a reIving grants in order to review progress and report ba( to the meeting of SleeS. How all of th88e meetings and enquiries a conducted will be detemined by progr88s made against the coronavirus em8rg8ncy. Attention will continue to be paid to any ch8nges in charity legislation and to relevant guidance issued by the Charity Comrnission which affect the work and status of the Charity. Further consultancy reports on the Charity's support for Quaker educalion commissioned by the trustees will be considered at length and is likefy to lead to new approaches by the Charity to the whole question of fvnding of Quaker causes. It is intended that improved links with Friends House in London and the Reckitt 88ncki88r company in Hull can be developed further to the benefit of all parties. STRUCTURE, GOVERNANCE AND MANAGEMENT Governlng docuff*nt The Sir James Reckitt Charity I'th8 Charity'l is constituted under a trust deed dated 25th May 1921 and is a regislered charity number 2256. Recruitment and appaintmènt of new trustees The appointment of trustees of the ChaThty is made by the existing trustees and is confirmed by Deed of Appointment. The trust deed gives authority to appoint one new trustee who is a mernber ol the Pickering and Hull Aroa Meeting of the Religious Society of Friends (Quakers). This appointment is currently held by Mr5 M. Fish8r. A sub-cornmittee of tmstees which serv8s as an Appointmenis Committee is established when needed to Mlentsfy and encourage potenlial new Iru51ees lo replace those who have left the service of the Gharity. The names of Ihe trustees at 31 st December 2020 are sel out in page 1 of this Report. Ai trustees give their time voluntari and receive no benefit5 frorn the Charity. Any trustee expenses reclaimed from the Charity are set out iri Note 8 to Ihe financial statement$. Organisatlonal structure and decision makin9 The trustees meet twice a year to discu35 the Charity's affairs and to alloG8te grants and c8n make such regulations as to ihe general managgfTl8nl of Ihe Charity as they think fit. A sub-committee of trustees 88rve5 as an Investment Committee and manages the investments of the Charity wrth appropriate professional guidanc8, this being provided cUentlY by Quilt8r Ch8VlQt Investment Management Limited. The committee me8ts with the investrn8nt managers fvlice a year. Further sub-committees are sel up from time lo time lo consider curr8nt issues. Al the present lime there are 5ub- committees In pla¢e to consider coronavirus-related appeals, Quaker aducation and potential fvnding of the Quaker United Nations Office. The routine man8g8menl of the affairs of the Charity is th& responsibility of the iwo part-lime salaiied administrators. IndLtctlon and Ir•lnlng of new trustee6. The procedure for introducing new Iruslees includes information meetings wiitt the Chainnan and the administrator5 and the provision of relevant dwuments and procedure papers. The flrsl rtsviews of grant recipients undertaken by new Iruste8S 8re generally done in combination with an existing trustee. Key rnanagement remuneratlon Key management remuneration is aged by th8 trust8es 8fKI is adjusted annual in respect of infialionary increases. Risk manJrnent The Iruslees have the duty to identify arml review the risks to which the Charity 15 8xposed and to ensure approprte ontrols a in place to provide reasonable assurance ag8inst fraud and error. Th8 truste88 confimi that systems are in place to mitigate risks which the Charity might face. The policies of the Charity with regard lo investments, financial procedures and grant rnaking are clearfy set down in policy statements which, in part, address issues ol potential risk. These policy statements are 811 vieWed on a regular ba515 and amended, where necessary Lo lake account of changing circUmstanS and practic8S and made available lo all trustees. Page 6
The Sir James Reckitt Charity Report of the Tru$te85 for the year trnded 31st December 2020 STRUCTURE, GOVERNANCE AND MANAGEMENT Icontlnued) Risk management Icontinuedl Org8nisations which ceive regular granis from the Charity are subject to remew by tnjstees by rne8ns of an èstablished eyele ol visits and enquiries. All grants which arg phased ovgr iwo or the years are made striclly condiltonal on Ihe receipt of salisfactory pwress reports and are subject to the agTeernent trf the trustees al each stage. It is also customary for a ntjmber of new appeals lo be made the subject of an enquiry by a trLJStee befo a grant is decided. parti¢ul8rly if it is felt Ih8re are matters needing closer examination or if the polenlial grant was large. Every year around 60 to 70 organisations are made the subj8Ct of a visit or enquiry by a trustee. This figure repsents around 25Vv of the total number of oroanisations which r8C8ived o Qfant during the year. The importance of full compliance wlh all legal requirem8Nts is understood and are relevanl issues are aired and dlscussed al meets'ngs. The Charity 1$ a member of the Association of Charitable Foundations and trustees hav8 full access to news and advi Provided by the Assoaation. Close working relationships with the Charity's Inv8strn8nt Managers and A¢¢ountants are irntx)rt8nl in 8nsuring that awarene55 of areas of potential risk can be maintained and addr8ss8d. STATEMENT OF TRUSTEES RESPONSIBILITES The trust6es a responsible for preparing ihe Trustees, Report and the financial statements in accordance wtth appllcable law and Uniled Kingdom Ac¢ountlng Standards (United Kingdorn Ggnprally A¢p(ed AccountiryJ Prdcbcgl. The law applicable to charities in England & Vvales, the Charities Act 2011, Charity (Accounts and R8POrtsl Regulations 2008 and the provisions of the trust deed require5 the Iruslees lo prepare financial slaiements for each financial year which give a true and lair view of the stale ol affairs of the Charity and of the Incoming resources and apIcatIon of reSoUrs, including the incorne and expenditure, of the Charity for that P9riod. In preparing these financial statements. the trusleès are rAniiifpfl tn. select suitable accounting policies and apply them consistently. observe the methods and principles in the Charities SORP. rllake judgements and estimales thal a reasonable and prudent. sl8le whether applicable accounting standards have been followed, subjed to any material departures disclosed an 8xplained In the financial statements. ppare the financia1 statements on the golng concem basis unless it is inappropriatè to presume that the Charity will conb'nue in operalion. The trustees are responsible for keeping propel awounb.ng records which disclose with reasonab18 accuracy at any time Ihe finanaal position of the Charity and enable them to ensu that the financial statements comply wrth the Charities Act 2011. the Charity (Account5 and Reportsl RUlatIOnS 2008 and Ihe provisions of the Irust deed. They ar8 a150 responsible for safeguarding the assets of th8 Charity and hen for taking reasonable steps for the prevenbon and (Jeteth"on ol fraud and other irregularities. Approved by order ol ihe bo81(J of Imstèes on 26th May 2021 and signed on ils behalf by .' JOCL , Mrs S Craven IGhaimianl- Trustee Page 7
R•port of th• IrFdependenl Auditors to the Trustses of The Slr James Reckltt Charity Opinion Wg have audited the financial statements of Thè Sir J8m8s Reckitt Charity (the charity'l for the year ended 31st December 2020 which comprise the Statement of FinarFcial Activities, the Balance Sheel, thè Cash Flow St81grnenl and not8S to the financial slatemenls. including a summary of significant accountiThJ poliaes. The financial reporting frarnework that has been applied in their preparailon Is appli¢able law and United Kirodom Accounting Sland8rds (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial stat8rnenls'. give a true and fair view of the Stale of the charity's affairs as at 31st Docernber 2020 and of ils incoming resou5 and application ol r8sourc8s, for the year then ended", have been properfy ppared in a¢cordance with United Kingdom Generally A¢PIed AccountirrfJ Practice., and have been prepa in accordance with the requirements ofthe Charities Act 2011. 8asls for opinion We conducted our audit in accordance Inlemational Standards on Auditing IUKI IISAS IUK}l and applicabk law. Our responsibjlities under those standard8 are further described in the Audilors, SponSibl1111es for the audit of the financial siatemanls seetion of our report. We are independent of the charity in accordance with the ethical requirements th* a levanl to our audit of the financial stslemenls in the UK, including the FRC'S Ethical Standard, and we have luifilled our other ethical SponsIbl11118s in acry)rd8nce with these requirements. We believe that the audit evidence we have obtained Is sufficient 8nd appropriate to provide a basis for our opinion. Concluslons r•latiny to golng concern In auditing the financial st8t8m8nts. we have concluded thal the trust885' use of the going concem bas6s of accounting in the preparalton of the financial statements is appropriale. Based on the work we have perforrned. we have not Identified any m8t8ri81 uncertainties relating to event5 or conditions that, individually or ¢olle¢tively, rnay cast significant doubt on the charity's ability to continue as a going concem for 8 penod of at least Iwelve months frorn when the financial statements are authorised for Tssue. Our responsibilili8s and the responsibilities of the tnJste&s wlth rgsptrct to goiry c4)ncern are described in the relevant sects'ons ofthis pOrt. Other Infomiation The trustees ar8 responsible for the other infom)ation. The other infomation comprises Ihe infomation included in the Annual Report, other than tre f1n8ncial stalements and our R8port of the Independent Auditors thereon. Our opinion on the financAal slalemenls does not cover the olhor information and, except lo the extent othèMi88 explicitly stated Sn our port. we do not express any form of assurance conclusion Ihereon. In connection with our audit of the fin8ncial statements, our r8sponsibility is lo a the other infomialion and, in doing SO, COll5id8r whether the other inlomialion is matenally Inconsistent with the financial statement5 or our knowledge obtained in the 8udil or otherwise appears to be materially misstated. If we idents.fy such material inconsistencies or apparnt material rnisstalements, we are reqUId to delerrnine whether there is a material misstat8rnenl in the financial statements or a material misstalernent of the other information. If, based on the work we have perfome(J. we conclude that there is a material misstatemenl of this oth8r information, we are required to report thal fact. Vvg have nolhirvJ to report in this regard. Matters on which we are required to report by •xe•ption Wg have nothing to report in respect ol the following matters where the Charitses Act 2011 quI8 us to report to you if. in our opinion.. the infomiation given in the Report of the Trustees is inconsistent in any Mate&1 respect wlh the financial 51alernents; or sufficient accounting records have not 8n kept,. or the financial statements are not in agr88menl wlh the accounting CordS and relums., or we have not reIved all the Informab'on and explanations we require for our audiL Responslbllltles of tru$t••$ As explained more fully in the Statem8nl of Trustees, Responsibilities, th8 trustees are responsible for tho preparatlon of the financial sialements which giv8 8 true and fair view, and for such intemal control as the trustees detemiine is necessary to enable the pr8paration of financial siatements ihat are fe from material misstatement, whether dtse io fraud or error. In ppanng the finaneial statem8nts, the trustees a¥e responsible for assessing (he charity's ability to continue as going concern, disclosing, as applic8b18, matters related to going concem and using the going concem basis of accounting unless the trust885 either intend to liquidate the charity or to Cease operdlions, or have no realistic altemalNe but lo do so. Page 8
Report of the Independent Audltors to the Trustees of The Sir Jam9$ Reckltt Charlty Our responsibilitleg for the audit of the flnanclal statements We have been appoinled as auditors under Section 144 of the Ch8rili85 Act 2011 and port in accordance with the Act and relevant regulations made or having affect thereunder. Our objectives are to obtain reasonable assur88 about whether the financial stalernents 8$ a Who are free from material misslatement, whether due to fraud or 8rror, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assuran is a high lev81 01 assuran but is not a guarantèe that an audit conducted in accordance with ISAS IUKI will always delecl a material misstatement when It exists. Mi851atements can arise from traud or error and are wnsidered material if. individually or In the agggate, they could reasonably be expected to inlluence the economic decisions of users taken on the basis of these financial stalern8nls. Irregularities, including fraud, are instances of nOn-ThpL1ance with laws and regu18tions. We design procedures in line with our responsibilitiès, outlined above. to dele¢t material misstatements in Tespecl of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is d8tailed below.. Our approach to identifying and assessing the risk5 of material misstatement in re5pe¢t of irwularities. including Iraud and non-compliance with laws and regulations, was focused on specific laws and regulations which we considered may have a direct material effect on the financial ststements or the operations of th8 chanty, including The Charity Act 2011, d8ts protection laws and employrvenl laws. An underslanding of thes8 laws and gUlationS was obtain8d through discussion wth management and insp8Cting legal and gUlatOry corresw)nden¢e. We assessed the susceptibility of Ihe ch8rity's financial statements to material misstatement. including obtaining an undersi8nding of how fraud might occur. by making enquiries ol management and considering Ihe intemal controls in place to mitwjale risks of fraud and non-cornpliance with laws and regulations. To address the risk of fraud Ihrouqh manaqern8nt bi8$ and override of controls, we perform¢d analyb.cal procedures lo identify any unusual or unexpected relationships., t8st8d joumal entries to identify unusual transactions: assessed whether judgements and assumptions made in detemiining the accounbw 8stimates were indicalive of polenlial bias., and investigated the r8tionale behind significant or unusu81 transactions. In response to the risk ol irTegulari(ies and non-cornpliance with laws and regulations, we designed procedures which includecj, but were not limited to." agreeing financial statement disclosures to underfying supporting documentation., r8ading the minutes of rneetings ol Ihose charged with goveman¢e', enquiring of manag81ll8nt as lo actual and potential litigation and daims., and reviewing correstK)nd8nce with HMRC. relevant regulators and the parent company's and group's legal advisors. Due to the inherent limi131ions ol an audit, there is a risk that we will not d8tect all irregularities, including those leading to a material misstatement in th8 financial statements or non-compliance with regulalion. This risk incr9as8s the more Imat compliance with a law or regulalioll is removed frorn the events and transactions reflecled in the finanGial statements, as we W11 be le55 likely lo become aware of Instances ol non-complianc8. Au(Siting standards also lirnit the audit procedures required to idenb.fy non-compliance with laws and regulab.ons to enquiry of the dir¢¢lors and other management 8fKI the inspectson of regulatory and legal correspondence. if any. The risk is also grèatèr regarding irregularitr'8s 0Urring due lo fraud rather than error, as fraud involves intention81 Concealment, forgery, wllusion, omission, or rnisrepre58ntab"on. A further description of our r9$ponsibilities for the audit ol the financ4al slalemenis is located on th8 Financial Reporting Council's website al www.frc.org.uklauditorsresponsibilities. This descriptson fomis part of our Report of the Independent Auditors. Use of our report This report is solely to the charity's trusiees, 0$ a tM)dy, in accordance with SeGlion 144 of the Charities AGt 2011 and regulations made under s8cts.on 154 of that Act. Our audit work has been undertaken so th81 we mighl state to tha harty's trustees and the Iruslees those matters we are required to state to them in an auditOfS' Teport and for no other purpos8. To the fullest extent permitted by law, we do not accept or assume responsibility lo anyone other than the charity and tho eh 'ty's trustees as a body, for our alsdil work. for this retY)rt, or for the opinions we h8V8 fomed. t6phen Bramall BSC, FCA (Senior Stalulory Audilorl For and on behalf of Srnailes Goldie Chartered Accountants Slalutory ALJdittrr Eligible lo act a$ an auditor in lerrns of Se¢tion 1212 of the Companies Act 2006 Regent's Court Princess Street Hull East Yorkshire HU2 8BA 26th May 2021 Page 9 Type text here
The Sir James Reckltt Charity Statement of Financlal Actlvltles for the year ended 31st December 2020 2020 Total fundB 2019 Totsl funds Unrestricled fund Endowment fund Notes INCOME AND ENDOWMENTS FROM Donations and legacies Inv8stsll8nt income 250 1,575,521 250 1.575.521 1,541,182 Total Incorne 1,S75,771 1 575,771 1,541.182 EXPENDITURE ON Raising funds 142,841 142,841 141.699 Charitabl¢ ¥etlvltl•s Children Education Eldarfy Environment Medical Religion Social Worf Youth 54.214 256.249 18,179 9.679 105.928 136,283 703,567 57,637 $4,214 256,249 18,179 9,679 105,928 136.283 703,567 57,637 41.597 301,827 18,332 18,332 95.994 146,445 743,668 58.882 Total •xpendlture 1 341736 142,841 1,566,776 Nel gainslllossesl on investments 3 061.319 3 146488 6,701,416 NET INCOME 319,204 2,918.478 3,237,682 6,675,822 Transfers b•twè•n fund8 20,752 20,7521 Net movement in funds 339.956 2,897,726 3,237,682 6,675,822 RECONCILIATION OF FUNDS Total funds brought fornard 2,101,533 47,669,527 49.771.060 43,095,239 TOTAL FUNDS CARRIED FORWARD 2,441489 50 567,253 53,008,742 49,771,060 The notes fom part of these finanrial statements Page 10
The Slr Jame5 Reckitt Charfty Balan Sheet 31st December 2020 2020 Total funds 2019 Tot81 funds Unrestricted fund EndowTh8nt fund Notèg FIXED ASSETS Investments 1,539,086 50,605,953 S2,145,039 49,139.215 CURRENT ASSETS Doblors Cash al bank 12 68.950 848 707 88,950 848,7Q7 44,578 721,459 917,657 917,657 766,037 CREOITORS Amounts falling due within one year 13 15,2541 38.7001 53,954 129,1921 NET CURRENT ASSETS 902 403 38 700) 8fj3 703 636,845 TOTAL ASSETS LESS CURRENT LIAeiLITIES 2,441,489 50,567,253 53,008,742 49.776,060 r.RFniTnR< Amoynls tslling due after more than one yeaf 14 5,0001 NET ASSETS 2.441,489 50,567,253 53.008,742 49,771,060 FUNDS Unrestricted funds Endovmient funds 15 2,441,489 50,587 253 2,101,533 47.669,527 TOTAL FUNDS 53,008,742 49,771.060 The financial slalements were approved by the Board of Trustees on 26th May 2021 and were signed on its bohalf by.. . CACL JGA Mrs S Craven IChairmanl- Trustee The notes fom part of these financial statements Pag8 11
The SÈr Jam•s R•ckitt Charity Cash Flow Statement for the year ended 31st December 2020 2020 2019 Notes Cash flows from operating xtivitiOS Cash generated from operalions 11,448,273) 11,496,537) Net cash used in operabrvj activiti8S 1,448,273) 1,498,537) Ca$h flows from Inwsting actlvltles Purohase of fixed asset investmenis S818 of tsngible fixed assets Inve51menl rnanagemenl lees Interest received Dividends received 15,506,081) 4,997,270 1140,6651 216,033 1,359,488 17.378,1281 7,440,144 1181,4941 81,062 1,460.120 Net cash provided by investing activities 926,045 1,421,704 Change In cash and cash equlvalents In the reporting period Cash and c35h ¢qui¥818nts at the beglnning of th¢ r•p¢rtlng perlod 1522,228) 176,8331 1,561,077 1,637,910 •8h and cash equivalents at the end of the reporting perlod 1,038,849 1.561.077 The notes form part of these finanaal statements Page 12
The Sir Jamos Reckltt Charity Notes to the Cash Flow Stat8m•nt for the year ended 31st December 2020 RECONCILIATION OF NET INCOMEI{EXPENDITUREI TO NET CASH FLOW FROM OPERATING AGTMTIES 2020 2019 Net Income for the reporting perlod las per the Statement of Financial Aetivitiesl Adjustments for.. Gain on investments Dividends received Investmenl mallagemenl f88S Foreign exchange movements IftteSt ceiVed from investmants llncreaseyDre8S in debtors Decrease in creditors 3,237,682 6.675,822 {3,146,4881 {1.359,4881 142,841 16,701,416} 11,460,120} 141,699 11461 181,0621 7,439 80 7531 1216,033} 124.372} 8241S} Net cash used In operalions 1,448,273) 1,498,537) ANALYSIS OF CHANGES IN NET FUNDS At1.1.20 Cash flow At 31.12.20 Cash at bank Cash held by investmenl managers 721.459 839,618 127,248 649,4781 848,707 190,142 Total 1 561,077 522 2281 1.038.849 The cash held by investment managers is not avai18ble to tha charity for Ihe furtheran of Gharitab18 activities, as it is held as part ol the charity's endowment fvnd. Page 13
The Sir James Roekitt Charity Notes to the Financial Statements for the year ended 31st December 2020 ACCOUNTING POLICIES Basis of preparing the financial statem•nts The Sir JaTnes R8ckitt Charity 18 consts'tuled by a deed of trust and registered with the Charity Commtssion in England I Wales. Th8 princip818ddress is given in the Reference and Administration Details on page 1 of these financial stAtements. The nature of the charitys operations and principal activities are set out in the Report of the Trustees on pages 2 10 7. The charity constitutes a PLJblic benefit entity as defined by FRS 102. The financial statements have b88n ppar8d in accordance wth Accounting and Reporting by Charities.. Slalernent ol Recommended Practice applicable to charits.es pparing their accounts in accordance with the Finaneial Reporting Siandard applic3bJe In the UK and Republic of Ireland issued in October 2019, th8 Financi81 Reporbng Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021, the Chariti85 Act 2011 and UK Geneially Accepted Accounting PTactiC8. The financial statements have been prepad lo gNe a 'tfue 8nd fairf view and have departed from the Char5bes (Accounts and Reptrrtsl Regulations 2008 only to the extent required to provide a 'true and lair vlew. This departure has involved following the Accounting and Reporting by Charities.. Stalem6nt ol Recomrnended Practice applicab18 to charities preparing their accounts in accordan with the Financial Reporting Standard applicabl8 Tn th8 UK and Republic of Ireland issued in October 2019 rather than the Accounting and Reporting by Charities.. Statement of Recommended Practice effective from 1 April 2005 which has Sin been withdrawn. The finaneial statern8n& are prepared on a going concern basis under the historical cost convention, modified lo include certain it8rn8 al fair value. The financial statements are presentsd in sterfing which is the functional culnCy of th8 charity and rounded io the neafest £1. The signifiGanl ac¢ounling policies applied in the preparation of these financial statements a $8t out below. These polieies have be8n consistently applied to all years presenle¢J unless otheiwise stated. Going concern The financial stslerTTents have been prepare(J on a going concern b8sis as the trustees believe that no material urTcertainties exisl. The Iruslees have considered the lev81 of funds held and the expected level of income and expenditure for 12 rnonths from aulhorising these financial statements. The budgeled income and Bxpenditure is s¢Jfficienl with the levol of reserves for the charity to be able lo Continue 8s a going concem. Incomè All incom8 is rèwgnised in the Statement of Financial Aotiwties Or the charity has entitlement to th6 funds, it is probable that the in¢ome will be reived, and the amount can be MeasUd reliably. Expenditure Llabiliti85 are recDgnised as expenditu as soon as trere is a legal or constructive obligab'tsn committing the charity to thal expenditure, il is probable that a transfer of economic benefits will be QuIred In sett18rnent and the amount of the obligation can be measured r81iably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggr8gale all cost related lo the category. Where ¢osls cannot be directly attributed lo particular headings, they have been allocated to activities on a basis ¢onsistenl the use of resourGes. Grants payable are charged in the year when the offer is made except in thcse cases Ihg offer is conditional, such grants being r8cognised as expenditure when the conditions attaching are fullilled. Grants offered subject to ondilions which have not been m8t at the year-end date a noted as a commitment but not accrued as expenditu. All resources expended a inclusiv8 of irrecoverable VAT. Ralsing funds The cost of generafjng funds consist of investmenl management and certain legal fees. Charltable actlvlties Cosl of charitable activities include grants made and an apportionment of overhead support costs as shown in note 4. Allocatlon and apportlonm¥nt of costs Overhead and support costs have been allLKated first between charitable activities and governan. Ovethèad and support costs relating to thari18ble activities have been apportioned based on the value of grants made. The allocation of overhead and support costs is analysed in nole 6. Page 14 continued...
The Sir Jamos Reckltt Charity Not85 to th• Frnanclal Statemonts- continued for the year ended 31st Dec•mb•r 2020 ACCOUNTING POLICIES- continuod Govern3ne• costs Gov8rnance cosis comprise all costs involvlng the public accountability of the Gharity and it5 compliance with regulation and good Pf8CtIC8. Th8se expenses include costs lated lo statutory audit and legal fees together with an apporttonment of overhead anil support cosls. whe costs cannot be dirgclly attribuled to èither ol these calegod6s, It is estimated. based on activity levels that 85°/D Staffing costs, office supptsrt costs, membership lees and office equipment and 90Q/o of the costs ol trustees meeting are attribul8b18 to charitable expenditure with the balance to qovemance costs. Governance costs are apportioned based on th8 valu8 of granis made. Taxatlon The Sir James Reckitt Ch8rity is a UK regisled charity and all of its in¢orn8 is applth to Ihe achievement of its ch8ritable objectives. The charitable company is therefore exempt under Current legislation from most fomis ol taKation Fund accountlng Restricted funds are frjnds which ar8 able to be used in accordance with th8 SCe triCtiOnS imposed by the donor. Endowm8nt funds comprise 8ss&ts in a permanent endovmient fund with no power to convert the capital into income. Gainslllossesl on asset h8ld in the endowment fund, both alIsed and unrealised, increaselldecreasel the endowment fund. The irwme fund is an UnstrICted fund and is expendable at the discretion of the trust885 furtherance of the objectiv8s of the Charity. Income is derived from the investment of the Charitys endtswmenl fund. Investment income, gains and108ses are allocated to the appropriate fund. nslon costs and other post-retlremgnl bgn¢fits The Gharity operates a defined contribution pension scheme. Contributrons Payab lo the chariys pension scheme are charged lo ihe Statement of Fin8ncial Aobvilies in the period io which they relate. Debtors and ¢r•dltors receivablelpayable within one yèar Debtors and QdItorS wilh no stated interesl rate and r8C8ivabl& or payable wthin on8 year ar8 rEcorded at iraisaction price. Any losses arising from impairme418re recognised in expenditu. Int0r08t rgcelvable Interest on funds held on deposit is included when CeiVable and the amount can be rnea$V reliably by the Charity." this is normally upofj nob'ficalion of the interesl paid or payable by the bank. Offi¢• equlpment Office equipment costirrfJ less than £2,500 par unit is charged against incom8 in the year ol purchase and apporb'oned between chariiable expenditurts and govemance costs. Reallsed gains and loss•s All gains and losses are taken to Ihe stalernenl of finan¢T81 aetiwties as they arise. Realised gains and losses on investments are calculated a$ the difference been sales proceeds and th8 opening carrying value or purchase value if aCqUid subsequent to the first day of the financial year. Unreali5ed gains and losses are calculated as the dtfference between Ihe fair valu8 at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Stat8m8nt of Financial Activities. Flnancial Instruments The Charity only h8s financial assets and financial liabiliti88 of a kind tliat qualify as basic financial instwments. Basic financial instwmenls are initially recognised at transaction value 3nd subseQuenY measured al amortised cost wilh the exception of fixed assel investmanis which are subsequenuy rneasur8d at fair value as al the bal8nGe sheet date using the closing quoted market price. Critical ac¢ountlng •8tSmate8 and areas of judgement Estimates and Judgements a continually evaluated and are based on historical experience and other 18clors, including expectations of futUf¢ events that are believed to be reasonable under the circumstances. The Charity makes estimat&$ and a$sumpb"ons conceming the future. The r85u1kn.ng accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimate5 and a55UmPtions that have a significant risk of causing a material adjuslm8llt to the carrying amounts ol assets and liabilthes, within the nexl financial year, are the level of investment return and the performance of investment markets (see investment policy and performance risk management Section of the trust8es annual report for further delailsl. Page 15 continued...
The Slr Jame$ Reckltt Charlty Nolgfj to the Flnanclal Statements . continued for th• y•ar ènded 31st December 2020 ACCOUNTING POLICIES- continu•d FSxed a88et 5nv08tments Fixed asset inveslmenls are a lomi of basic financial instNment Bnd a initially recogni58d at their transaction value and subsequently rreasured at their fair value as the balance sheet date using the c105ing quot8d tnarkèt price. The statement of financial activities includes Ihe net gains and losses arising on r8v8lualion and disposals throughout the year. The charty does not acquire PLrt options, derivatives or other complex financial instwments. The main forni of financial risk laced by the charity is that of volalility in equity markets investment fflarkets U8 to wider econornic conditions. the attitude ol inveslors to Investment dsk and Changes in $enlimenl onceming equrties and within particular sectors or sub sectors. INVESTMENT INCOME 2020 2019 Interest- fixed InteSt security Dividends 216,033 1,359.488 81,062 1.460,120 1,575,521 1.541,182 RAISING FUNDS Investment management costs 2020 2019 Portfolio management 142,841 141,699 CHARITABLE ACTIVITIES COSTS Grant funding of activities (see note 51 Support costs (see not8 61 Totals Children Education Elderty 51,500 243,360 17,500 9,000 100,500 129,500 687,611 54,925 2,714 12,889 679 679 S,428 6,783 35,956 2,712 54,214 258,249 18,179 9,679 105,928 136,283 703,567 57,637 Environrn8nt Medical Religion Soaal Work Youth 1 273.896 67,840 1,341.736 Page 16 continued...
The Sir James Reckitt Charity Note$ lo the Financial Stat•monts- contlnued for the year ended 31st December 2020 GRANTS PAYA8LE 2020 2019 Children EduGobon Elderly Environment edical R81ioion Soci81 Work Youth 51.500 243.360 17,500 9,000 100,500 129.500 667.611 39,100 284,348 17,500 17,500 91,000 138,120 698,599 55.550 1.273,896 1 341 717 The total grants paid lo inskn'tul'ons during the year was as follows.. 2020 2019 Grants to Inslitulions 1,178,486 1.236.629 The totsl grants paid lo indwidu¥ls during the yaar was as follows.. 2020 2019 4nK noo A detsiled list ol 811 grants payable during the year is included in note 17. SUPPORT COSTS Manag•m•nt and staff Oth•f office costs Trustees meetings Bank charges Year ended 31 December 2020 Children Educats'on Elderfy 1,505 7,150 376 376 3,010 3,764 19.945 1,505 134 637 34 34 268 335 1.776 134 34 160 Environment M8diral Religion S181 Youth 37 46 245 18 68 84 32 37.631 462 3,352 Membershlp Costs Year ended 31 Dec8mb8r 2020 Consultancy Governonce Totals Children Education Eldedy Environment Medical Religion Social Youth 154 732 39 39 308 385 2,043 154 75 355 19 19 150 187 990 75 2,714 12,889 679 679 5,428 6,783 35,956 2.712 3.767 198 198 1,587 1,982 10,509 794 1,870 19,829 Page 17 ¢onlinue(J...
The Slr Jam•s R•ckitt Charity Notes to the Flnanclal Statements- contlnu•d for tho year ended 31st December 2020 SUPPORT COSTS (continued} Management and staff Othgr office Trust•e8 meetings Bank charg•s Year ended 31 December 2019 Children Education Elderly Environment Medical Religion Social Youth 1,089 7.624 363 363 2.178 3,630 19,656 1,452 523 3,662 174 174 1,046 1,744 9.441 698 12 81 80 23 37 208 15 23 39 212 16 36,355 382 17,462 391 Membership C06ts Yaar ènded 31 D9cernber 2019 Consultan¢y Govemance Total8 Children Education Eldedy Environment Medieal Religion Social Youth 178 1,244 59 59 356 593 3.208 237 55 386 18 18 110 629 4,402 210 210 1.258 2,098 11.347 840 2,497 17,479 832 832 4.994 8.325 45.069 3,332 997 74 1,842 20,994 83,360 Gov8m8n¢8 costs include the following items of expendiluro.. 2020 2019 AcCntanCY charges Audit fees Legal and professional fees Staff costs Office costs Bank charges Trusteeg meetir@s Training 5,370 5.184 2.030 6,551 173 149 372 5,160 4,260 2.271 6,407 101 69 1.938 20,994 AUDITORS. REMUNERATION 2020 2019 F8es payable lo the charity8 auditors for the audil of the Charity's financial statements Auditors. remunerdtion for non-audit worf( 5,184 5,371 4,260 5,160 TRUSTEES. REMUNERATION ANO BENEFITS Th8 Iruslees neither received nor We entillèd to rg¢eive any emoluments in Ihe current or previous y8ar. Trust•¢$' gxpen5es Costs of tru5t88s' rn88tings includes £447 in respect of the reirnbursement of travelling, subsistence and ralated expenses to two trust88s 12019. £12.882 to 16 trustees). The remainder of trustees, meeting costs relate to payments Fnade to third paty suppliers in respecl ol venue, catèring and other associated cosis. Pag8 18 ontinued...
The Sir Jarnes Reckitt Charlty Notgs to the Financial Statements- continu•d for the year ended 31st D?rnber 2020 STAFF COSTS 2020 2019 Wages and salanes Social S8CUTity costs Other pension costs- deffined contribution scheme 42,010 41,424 145 1,280 44,271 42,709 The average monthly number of 8mploy&e8 during th8 year was as fdlows.. 2020 2019 Support The full time eqUvalent IFTEI number Of staff was 1.412019- 1.41 No employees received amoluments in excess of £60.000. 10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES TA+al fund fund funds INCOME AND ENOOWMENTS FROM Investment income 1,541,182 1,541,182 EXPENDITURE ON Raising lunds 141,699 141,699 Charttable activltles Children Education Elderfy Environment Medical Religion Social Work Youth 41.597 301.827 18.332 18,332 95,994 146,445 743.668 58,882 41,597 301,827 18,332 18,332 95,994 146,445 743,668 58,882 To1 1,425,077 141,699 1.566,776 Net gainslllossesl on investments 41,489 6,659,927 6,701,416 Net mov•m•nt In funds 157.594 6.518.228 6.675,822 RECONCILIATION OF FUNDS Total funds brought forward 41,151,299 43,095.238 TOTAL FUNDS CARRIED FORWARD 2,101,533 47,669,527 49,771,060 Page 19 continued...
Thg Sir J8m•s RkItt Charfty Notes lo the Financlal Statements - eontlnu•d for the year ended 31st D•¢emb•r 2020 FIXED ASSET INVESTMENTS Cash held by investment managers Fixed interest stooks Equities Totals MARKET VALUE At 1 st January 2020 Additions Disposa15 R8valualions Investment management charges 2,386,461 45,913,136 290,209 5,215,872 1202.4131 15,202,402> 14,0751 3,558,109 839,618 15,506,081 4,997,270 49,139,215 1407,5451 3.554,034 140,8651 140,6651 At 3151 December 2020 2470 182 49 484.71 S 190,142 $2.145,039 NET BOOK VALUE At 31st December 2020 2.470 182 49.484 715 190 142 52 145.039 Al 31 st Decembe¥ 2019 2,386,461 45,913,136 83g,618 49 139.215 Investments at market value comprlse: UK Ov•rs•as 2020 2019 Equities Fixed interesl stocks Cash held by investment managers 25,474,603 2,079,582 190.142 24,010.112 390.600 49,484.715 2.470.182 190,142 45,913,136 2,386,461 839,618 Total market value 27,744,327 24,400,712 52,145,039 49 139,215 Valuauon All investments ar8 carried at their fair value. Investments in equities and fixed interest securities are all traded in quoled public rllark8tS, PriTnarily th8 London SloGk Exchange. Holdings in comrnon inveslm8nl funds, unil trusts and open-ended Investment companies a at the bid price. Assot 8al95 and purchasos are recognised 81 the date of trade at cost ltrat is their transa¢lion value). The significancè of financial instruments lo the ongoiro fin8nci81 sustainabilty of the ch8rity is considered in the financial revi8w and inv85tm8nt policy and performanc8 sections of the Trustges. Annual Report. M•t•rial invgstments eXCdIng 5% of the market value portfolio 2020 2019 Reckitt Benckiser Group plc 157,65012019. 170,9501 ordinary shares of1 Op 10,313,463 10.477,526 10.313.463 10477526 12. DEBTORS.. AMOUNTS FALLING DUE WITHIN ONE YEAR 2020 2019 Prepaymants and accruad income 44,578 Pag8 20 ¢onty'nugd...
The Sir James Reckitt Charity Note8 to the Flnanclal Slatemen¢s- contlnued for the year ended 31st Dec¢mb•r 2020 13. CREDITORS.. AMOUNTS FALLING DUE WITHIN ONE YEAR 2020 2019 Grants accrued - Institutional Accrued expenses 5,000 83,000 46,192 53,954 129,192 14. CREDifoRS.. AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 2020 2019 Grant5 accru8d Institutional 5,000 Movem•nt in recognlsed provlslons and funding commitments durlng the year Charitable commltments accrued Grant commitmants r8cognis8d at the siart of the yoar New grant cornmrtments charged to the Statement of financial activities In the year (note Sl 88,000 1,273.896 Grants refunded during the year Amount of grant CnEr11Ments recoqnised as al (he end of the ye8r 15. MOVEMENT IN FUNDS Nel Transfers betW88n funds mov8ment in funds At 31.12.20 At1.1.20 Unrostrl¢ted funds Genecal fuftd D8signated Funds- Methodist Homes Fund 1,974,872 126,881 319,204 147,413 1126,8611 2,441,489 2.101,533 319,204 20,752 2.441,489 Endowment funds Endowment Fund 47,669,527 2,918,478 (20,7521 50,567,253 TOTAL FUNDS 49 771060 3 237 682 53.008 742 Nel movement in funds, included in the above a as follows.. Incoming r8sourc8S ReSouS expended Gains and losses Movemenl in funds Unrestrfctod funds General ILJnd 1,575,771 11,341.7361 85.169 319,204 Endowmgnt funds Endowment Fund 1142,8411 3,061,319 2,918,478 TOTAL FUNDS 1,575,771 1,484,577) 3,146,488 3,237,682 Page 21 continued .-
Th• Slr J¥mg$ R•¢kitt Charlty Notes to the Financial St8tements- eontlnu•d for th& year •nded 31st D•cemb•r 2020 15. MOVEMENT IN FUNDS- conllnu Comparallvo6 fly movement In lund8 Net movemenl in funds Transfers befften funds At 31.12.19 At1.1.19 Unr•strict•d funds G8n8ral fund D8signat8d Funds- Melhodisl Hornes Fund 1,817,278 157,594 1,974,872 126.661 126,661 1,943,939 157,594 2,101,533 Endowment funds Endowfflenl Fund 41.151,299 6,518.228 47.669.527 TOTAL FUNDS 43,095,238 6,675,822 49,771,060 Comparative net movement in funds. included in the abov8 aT8 as follows.. Incoming SOLJrces Resou$ gXP8nd8d Gains and losses Movement in funds Unrestrlcted funds General fvnd 1.541,182 11,425,077) 41,489 157,594 Endowment funds Endowment Fund 1141,6991 6,659,927 6.518,228 TOTAL FUNDS 1,541,182 1.566,7761 6,701,416 6,675,822 The Methodist Homes Fund was designated by th8 Trustees to fund a long-tenn commitment l¢iwards sofving the ISSU8s of social care provision for elderly people in East Yorkshire, partnered with the Melhodisl Homes Association and other local orgallis8ttons. Having rnade various donations over the years, the IDJslees have decided to redeSnate the remaining tund to the General fund and accordingly there is a transfer shown betren the fund$. 16. RELATED PARTY DISCLOSURES During Ihg year the Charity rnade one grant to a relate¢J paty totalling £2,00012019-. £4.0ts0I. A grant of £2,000 was made lo the Hull Preparative Meeting, ol which Mrs M Fisher is a member. This grant wa5 awarded in accordance with the Charity's grant making policies. Pagè 22 continued...
The Sir Jam85 Re¢kitt Charfty Notes to the Flnanclal Ststemgnts- continued for the year ended 31st Doc•mber 2020 f7. GRANTS (SINGLE GRANTS UNLESS SHOWN OTHERWISE) 2020 hildfen Scholarshlps for Street Kids Save the Childn Fund NSPCC Barnardo's The PrinciDle Trust Children's Charity Hull Children's University The Sailors, Families Society Hull childn'S Adventure Society Th8 Sick childn'S Trust Whizz-Kidz Viking FM Cash for Kids 2 payments under £2,000 8,000 .uuo 8.LKIO 5,000 4,500 3,000 3,000 2,500 2,500 2,500 2,000 Total Childr•n grants pald In year and recognised in Statom•nt of Financlal Aetlyltles Educatian The Univ8rsIty of Hull Ackworth School Boolham School Trust Leighlon Park Trusl The Mount School Yorf( Foundation Sibford School Sidcot School Hymers College Hull Collegiat8 Trust Frederick Holmes School p-School Leaining Aliance Gillarnoor Primary School Independent Provider of Special Education A(Jvice David Ross Education Trust shakespea Schools Ftsundalion Hull Play Resource Centre S¢rapslore West Midlands Quaker Peac8 Education Project St James CE Academy Schwl Hornsea Nursery School 5 payments under £2,000 30.000 25.000 25,0(KJ 25,000 25,0(K) 25,OCiI 25,0 13,000 10,660 8,000 7,000 4,000 4,OOfl 3.000 3.000 3,000 3.000 2.000 2.000 Ipreviously accrued) Total EducatFon grants pald in year Less.. Previously accrued Total Educatlon grant$ recognls8d Sn Statement of Flnancial A¢tivitie$ 246,360 Elderly Age UK (Hull) Abbeyfield UK Hull & District Liv8 at Home 10,000 4,000 Total Elderly grants paid in year and mcognlsod In Statement of Flnanclal Activlties Page 23 continued..
The Slr Jame6 Reckltt Charfty Notes to Ihg Flnanclal Statements- contlnued for th• y•ar •nded 31st December 2020 17. GRANTS (SINGLE GRANTS UNLESS SHOWN OTHERWISE) ICONTINUEOI 2020 Environment Farrn Africa Field Studies Council 1 payment under £2.CKJO 5,500 2,500 Tolal Environment grants paid in year and reeognised in Statement of Financlal ActSvi11•8 Medical The Retreat York Antibio.¢ Research UK Brain Tumour Charity Marie Curie Cancer Care University of Hull Marie Curie Cancer Care Action lor ME121 Moghissi Laser Trust Asthma UK Cancer Support UK Teeth Team The Migraine Trust Candlelighlers Trust Fund Blood Can1 UK The Virtual Doctors Ltd RIC Spinal Injuries Asswiation Anthony Nolan Huntington's Disease Associab'on 3 payments under £2,00 30,000 25,000 10,000 10,000 7,500 6,5(K) 8,000 5.000 4.000 3.0 2.500 2,500 2,500 2,500 2,000 2,000 2,OtK) 2.Otx) Ipreviou51y gccruedl (previously drued) Total Medlcal grants paid In y•ar Le5s.' Previously accNed Total Medical grants recogni$ed in Stslgm?nt of Financlal ActSvltles 130,500 130,0001 Religion Woodbrooke Quaker Study Cent12) Britain Yearly Meeting Ulster Quaker Service Committee RJ Working (Restorative Justice) Pickering Meeting Quaker Tapestry Ltd Yorkshire Friends Holiday School Pickering & Hull Area Meeting Kendal & Sedb8rgh Ar88 Meeting Rookhow Quak8r M88ling The Friend. Publicath"ons Friends Housing Bursary Trust Hull Preparative M88ting Sl P8t8r5 Pgrish Humbleton 4 payments under £2,000 50,000 30,000 12,000 7.500 6,000 5,000 4,000 3,000 2,500 2,500 2,500 2.500 2,000 2,000 (previously accrued) Totsl Rellglon grants paid in year Less.. Previously accrued Le5s.' Grants paid Total lIgIon grants Tecognlsed In Statomont of Financial Actlvlde 15,0001 Paga 24 continued...
Th• Slr James Reckltt Charity Notes to the Flnanclal Statemfrnt8- ¢tIlle for the year ended 31st December 2020 17. GRANTS {SINGLE GRANTS UNLESS SHOWN OTHERWISE) ICONTINUEDI 2020 Soclal Meihodist Homes MHA Dove House Hospic8121 Hull Community & Voluntary SeNicas131 Doorstep of Hull Peace Oirect Humberca British Red Cross121 Listening Books121 Therapy Servioes UK121 Quaker Social Action Lake Oistrict Calvert Trusl131 Anli-slavery In18rnational Welcome Hous8 Home-start, Hull121 Martin House Spring Bank Community Association Hiuntinglon's Dis8ase Association Hull Lighthouse Project Hull Rape Crisis & Sextjal Advice Service Siohl SuDDOrt Hull & East Yorkshire Disability Sport Yorkshire HUSSO Studenl Comrnunity Action HeSe Road Network Mobility Trust Hull Women's Centre All Marshall Centre Catzero Ltd VictiTn Support Hurnber Ltd 8LESMA National Appeal Cherry Tree Community AssOCi81ion Forward Trusl Hull Samariians Rerun Furniture SeNice Ltd Sl Leon8rd's Hospice Inspire Comrnunilies Endike Community ca Association Siroke Association The Happy Baby Community Hope for Justice Leonard cheshi Homes Bridlinglon Samaritans The Green Team PAMC Open Dty)rs Camphill Village Trust Church Homeless Trust Down's Syndrome A$soci8bon House of Llght RHM Recovery SEED Eating Disorders Support Serv5 HEY Smile FoLSndatitrn East Riding Voluntary A¢ts'on SeNices ERVAS SSAFA Forces Help International RescLse Committ88 Suzy Lamplugh Trusl121 (previously accrued) 40,000 28.000 22,500 17,000 15,000 15.000 13,000 12,500 12.000 11,000 10,500 10,000 10,000 9.500 8.000 8.000 8.000 8.000 8.000 8,0(KJ 7,000 6,500 6,000 6,000 6,000 6,000 6,000 6.000 6,000 6,000 6,0(K) 5,000 5,0(X) 5,000 5,0(YJ 5,0(Xl 5,000 5,000 5,000 5.000 5,000 5,000 5.000 5.000 5,000 5,0(X) 5,OQO 5,000 5,000 5,000 5,000 5,000 Ipreviwsly accrued) Page 25 continued...
The Sir Jam•s Reckrtt Charity Notes to the Financial Stat8ment5 - continued for the year ended 31st December 2020 17. GRANTS (SINGLE GRANTS UNLESS SHOWN OTHERWISE} ICONTINUEDI 2020 Social {contlnuedl Hull Council ol Disabled P8OP M S Society Designability Family Holiday Association Humber Al-Nation5 Alliance Cruse Ber8av8ment C8re Hull & East RidirrfJ The New Bridge Emmaus Hull & Ea$1 Riding Prison Refom Trust Motor Neuron8 Disease A5518t10n RELATE Hull & East Riding The No Way Trust Prisoners Abroad QCEA British Committ88 Oxford Re58arch Group Hull Chamber Musc Royal National Mission to Deep Sea Fishemien Scoliosis Association Project Orchid Ltd Blind Velerans UK Circles UK South W8St Rebuilding Sri Lanka Tha Club House Comfflunity Centre Coltman Area Ctsmmunity Association Camegie Heritage Centr9 Young Adults Support S8NC8s YASS Catzero Ltd Stroke A550ciation Saint Catherine's Hospice Etemal 8enefits Fumilure CASE Training Services E.Y. Disabled Sports Asst18t10n Home-start Goo18 & District Wilberfoss. Kexby and Newton PFA Yani Zertalis Oriffield & Oistrict Skate and BMX Park Easl Hull Food Bank Hull Comtnunity Church Humber Community Advice Services Spring Bank Community A5lation Ytsrkshire AirArnbulance Ditto Hull Animal Welfare Trust Hearing Dogs for Deaf People Leven Playing Field AssooatsDn Hull 8ullnose Heritage Group 27 payments under £2,000 318 payments to individuals 4,000 4,000 4,000 4,000 4,000 4,000 4,000 3,500 3,500 3,500 3,500 3,000 3,000 3,000 3.000 3,0(K) 3,000 3,0(X) 3.0(M) 3,000 3,000 3.000 3.000 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,0 2.500 2.000 2,000 2,0(K) 2,0(X) 2,OtK) 2,000 2,000 2,000 2,000 2,000 2.000 2,000 2.000 2,000 28,730 Total Social grants pald In ar Less.. PvIOuslY accrued Total Soclal grants recognlsed in Statoment of Financial Actlvltles Pagg 26 continued...
The Sir James Reckitt Charity Not•8 to the Financial Stat•ments . continued for ¢he year onded 31st DeCemr 2020 17. GRANTS ISINGLE GRANTS UNLESS SHOVIIN OTHERVIISEI ICONTINUEDI 2020 Youth The W8fTen of Hull Ltd Endeavour Training The Pedro Club AndW M8rv811 Youth Centre Tall Ships Youth TTLJSt Ocean Youth Trust North Hull Sea Cadets Cottingham Scout and Guide Trust Awards for Young Musicians Maximum Life Youth Pfoiect City of Hull Sport & Community Group Leven Youth Club 3 payments under £2.000 4 payments to individuals 10,000 7,000 5,000 4,500 4,500 4,500 4,000 3,000 3,000 2,500 2.000 2,000 1.575 Total Youth grant$ paid in y•ar Less.. Grants rep¥id Total Youth grants re¢oonisèd In Statement of Financial Activitles Grand totals Total grants paid in year Less". Previously accrued Less.. Grants Paid Total grants ¢09nised in Statement of Financial Aetlvltl•s 1,359,596 183,000) 18. FUTURE COMMITMENTS The truslees have agreed lo make future grants. Sublt to r)roviding accounts and projection5, of £Nil 12019. £750,000) These future commitments arg entirely at the discretion of the trusteès and a, therefore, not included wthin the financial statements as ¢dItOrS. Page 2F