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2021-04-30-accounts

The Kennedy Memorial Trust

Report and Financial Statements

Year Ended 30 April 2021

Registered Charity number 234715

1

The Kennedy Memorial Trust

Annual report and financial statements for the year ended 30 April 2021

Contents

Page:

1 Report of the Trustees 10 Report of the independent auditors

14 Statement of financial activities

15 Balance sheet

16 Notes forming part of the financial statements

Trustees

Mr Matt Clifford MBE Dr Peter Englander OBE Ms Stephanie Flanders Ms Tilly Franklin Prof Maya Jasanoff Prof Fiona Macpherson Ms Mary Ann Sieghart Ms Moira Wallace OBE Prof Sir Mark Walport (Chairman) Prof Andrew Whittle

Patrons

The Rt Hon The Lord Mayor of London – William Russell The Governor of the Bank of England – Andrew Bailey

Director and Principal Address

Dr Emily Charnock, The Kennedy Memorial Trust, 3 Birdcage Walk, London, SW1H 9JJ

Charity number

234715

The Kennedy Memorial Trust

Report of the Trustees for the year ended 30 April 2021

The Trustees present their report and the audited financial statements for the year ended 30 April 2021.

Status and Administration

The Trust is an unincorporated charity, Charity No. 234715, governed by a trust deed dated 4 July 1964 and amended 11 July 2007. Its principal activity is to administer the Memorial Fund set up to commemorate President John F Kennedy. The Memorial takes two forms:

The Trustees who served during the year were:

H E The US Ambassador – The Hon Robert Wood Johnson (until January 2021) Mr Matt Clifford MBE

Dr Peter Englander OBE Ms Stephanie Flanders Ms Tilly Franklin (from September 2020) Prof Maya Jasanoff (from September 2020) Prof Fiona Macpherson Ms Mary Ann Sieghart (Senior Independent Trustee) Prof Anthony Saich (until August 2021) Ms Moira Wallace OBE Prof Sir Mark Walport (Chairman) Prof Martin Weale CBE (until September 2021) Prof Andrew Whittle

The day-to-day running of the Trust is delegated to the Director.

Director

E Charnock

Accountant Auditors Arabis Accountancy Services Ltd Buzzacott LLP Ware 130 Wood Street Hertfordshire London SG12 8JL EC2V 6DL

Bankers

Investment Managers

The Royal Bank of Scotland plc BlackRock Investment Management (UK) Limited 62/63 Threadneedle Street Investment Managers PO Box 412155 12 Throgmorton Avenue LONDON LONDON EC2R 8LA EC2N 2DL

Solicitors

Messrs Stone King LLP Boundary House 91 Charterhouse Street LONDON EC1M 6HR

1

The Kennedy Memorial Trust

Report of the Trustees for the year ended 30 April 2021 (Continued)

Structure, Governance and Management

Governing Document

The main document governing the conduct of the Trust's activities is the trust deed.

Organisation Structure

The Board is normally composed of eight United Kingdom Trustees and three United States of America Trustees. The UK Trustees are appointed by the Prime Minister of the United Kingdom. Once appointed, Trustees are given induction training in the governance, operation and management of the Trust by the Director. As the need is identified, Trustees receive training either as a Board or individually in their specific areas of responsibility. The Trustees hold office for a period not exceeding five years and, upon retirement, become eligible for re-appointment for one further term. The Trustees who served during the year are listed on page 1.

One of the US Trustees is appointed by the President of the United States of America, one by the President of Harvard University and one by the President of the Massachusetts Institute of Technology (MIT). We anticipate the appointment of a new Trustee by the US President in the near future.

There are two ex-officio patrons: the Rt Hon the Lord Mayor of London and the Governor of the Bank of England.

Management Structure

The overall policy for the Trust is laid down by the Board of Trustees, which meets twice a year. In January 2021, the board approved the plan and budget for the Trust for the year.

Key management personnel

The key management personnel of the charity, responsible for directing and controlling, running and operating the charity on a day-to-day basis, comprise the Trustees together with the Director. Trustees do not receive remuneration in respect of their services to the charity. The remuneration of the Director is reviewed annually by the Chair, Senior Independent Trustee, and Finance Trustee.

Fundraising Statement

The charity aims to achieve best practice in the way in which it communicates with supporters. It takes care with the tone of its communications. It applies best practice to protect supporters’ data and neither sells data to, nor swaps data with other organisations, and respects its donors’ communication preferences. The charity manages its own fundraising activities and does not employ the services of professional fundraisers. The charity undertakes to react to and investigate any complaints regarding its fundraising activities and to learn from them and improve its service. During the year, the charity received no complaints about its fundraising activities.

2

The Kennedy Memorial Trust

Report of the Trustees for the year ended 30 April 2021 (Continued)

Management of Principal Risks and Uncertainties

In 2001, Trustees conducted a major review of the risks to which the charity was exposed, including those related to the operations and finances of the Trust and those specifically related to the memorial at Runnymede. This exercise was repeated in 2009 and in June 2020. The risk register is reviewed annually by the Board, having regard to the size and objects of the Trust, and seeking to ensure that appropriate measures are in place to mitigate the Trust’s exposure to major risk. Ongoing monitoring is delegated to the Director and the Senior Independent Trustee, in consultation with the Chair.

1. Insufficient funds generated,
through returns on investments
and a fundraising campaign, to
support the ongoing annual
awarding of Kennedy Scholarships.		 Trustees have a policy of awarding eight to ten
scholarships per year, provided there are candidates of
suitable merit. They recognise this means that, without
substantial donations, the Trust will eventually have to
cease the annual awarding of Kennedy Scholarships. They
plan to initiate a more significant fundraising campaign in
the coming years, and the continuation of the Scholarships
in their current form depends on this.
2. The Trust’s acquisition of a
reputation that would threaten the
standing of the scholarships, either
in the eyes of potential first-rate
applicants or among academics at
Harvard or MIT.		 Trustees are chosen with the scholarship’s reputation very
much in mind. They themselves come from a variety of
backgrounds and regularly reconsider the criteria for
awarding scholarships and the outcomes in terms of
diversity of background as well as fields of study.
3. Inadequate management of
applicants’ personal data in an
online application system, or other
data breach.		 The Trust uses a reputable company for its online
application system, which employs password-protected
access to individual data, encryption and SSL security
certificates for safe data transmission. It has robust
disaster-recovery procedures. The Trust also has robust
policies pertaining to data handling and storage.
4. Accident or injury to a member of
the public visiting the Kennedy
Memorial at Runnymede.		 The Trust has considerable public liability cover, at a level
researched and market-tested in 2016, to ensure that any
claim from a member of the public could be met. In
addition, there are signs throughout the site warning
visitors of heightened risks in wet weather. The memorial
is in a rural rather than a parkland location therefore
requiring appropriate footwear. Partnership with the
National Trust and regular visits by the Director and
Trustees ensure the landscape management risks are
appropriately monitored and acted upon.
5. Disruptions to operations or awards
relating to emergency
circumstances		 In light of the coronavirus pandemic throughout 2020-21
the Trust has enhanced its digital capabilities and adapted
its procedures so as to facilitate remote working and
operations,
ensuring
continuity
of
activities
and
organisational resilience. This reduces the risk of
operational interruption posed by future pandemics or
emergency
circumstances.
Experience
during
the
coronavirus pandemic can also provide guidance for the
future if grantees face disruptions to international travel or
US universities are forced to temporarily close their
campuses. The Trustees have developed flexible policies
to support grantees and adapt to new circumstances.

3

The Kennedy Memorial Trust

Report of the Trustees for the year ended 30 April 2021 (Continued)

Objectives and Activities of the Trust for the Public Benefit

In accordance with the governing documents, the objective of The Kennedy Memorial Trust is to preserve an appropriate British memorial to President John F Kennedy, perpetuating the memory of his outlook and achievements.

The Kennedy Memorial Trust administers money donated at the outset by the British public in response to an appeal after the assassination of President Kennedy on 22 November 1963. The British memorial has two expressions: a physical memorial in landscape and stone at Runnymede, in Surrey, and a living memorial offering Kennedy Scholarships to British postgraduate students admitted to Harvard and the Massachusetts Institute of Technology.

The Trustees protect, preserve and maintain the Kennedy Memorial at Runnymede, in association with the National Trust, to enable public access to, and enjoyment of, the site. Kennedy Scholarships provide full tuition fees and health insurance, a stipend for living costs, a generous contribution towards the cost of one return air fare to Boston and an additional discretionary grant for vacation travel within the US. The Scholarships, which are offered for one academic year, enable a small group of British graduates to take advantage of particular educational opportunities. Tuition costs are high at both Harvard and MIT and the majority of applicants have considerable student debt from their undergraduate degrees. There are clear benefits which arise from obtaining a graduate qualification in the US, both for the individual’s professional career and for the UK when they return. The Trust is one of a small number of bodies enabling leading British graduates to avail themselves of this opportunity. Kennedy Scholarships are awarded annually, in competition, after a UK-wide publicity campaign in universities and university-type institutions with associated advertisements.

Full application details are available on the Trust’s website: www.kennedytrust.org.uk. Applicants must be British citizens at the time of application who are ordinarily resident in the United Kingdom and who have been wholly or mainly educated in a British school and a British institution of higher education. If not due to graduate in the year of application, the Trustees require that applicants commenced their undergraduate studies at a UK institution of higher education no earlier than ten years prior to 1 September in the year of award. In awarding Kennedy Scholarships, the Trustees particularly welcome applicants with a strong public-service ethos. They take into consideration candidates’ intellectual attainment, readiness and ability to express themselves, and a wellresearched and argued case for their proposed course of study at Harvard or MIT. They also look for originality of mind, potential to make a mark in public life and the ability to overcome adversity. Awards are made in the expectation that Kennedy Scholars will bring the benefits of their American experience back to the United Kingdom.

The Trustees also award Kennedy Summer Research Scholarships, first offered in the financial year to 30 April 2018, to British citizens who are enrolled on doctoral programmes at Harvard and MIT. These are awarded through a separate application process in support of particular research projects, and are offered to broaden the reach of Kennedy Scholarships.

The Trust maintains contact with former Kennedy Scholars and typically organises several events for current and former Scholars throughout the year. Due to the global coronavirus pandemic throughout 2020-21 and social distancing restrictions, these events took place online visa video-conferencing, and the Trustees took the opportunity to engage with a wider audience through this format. In February 2021, for example, the Trust hosted an online event with Harvard Professor Fredrik Logevall, author of a recent biography of John F. Kennedy, which was open to the public and free to register. The Trustees look forward to resuming in-person events in the near future.

In fulfilling their obligations throughout the year, the Trustees have had regard to the guidance issued by the Charity Commission on public benefit.

4

The Kennedy Memorial Trust

Report of the Trustees for the year ended 30 April 2021 (Continued)

Grant-making Policy

Kennedy Scholarships enable leading British graduates who are also British citizens to benefit from the broad educational opportunities available at both Harvard and MIT, two world-leading universities, without having to meet the considerable costs involved. President Kennedy himself studied at Harvard. MIT was chosen because of the President’s keen interest in seeing technological advances reflected in government and international affairs.

In August 2020, all British universities and university colleges were notified of the forthcoming Kennedy Scholarship competition and advertisements were placed on a range of websites. The Trustees have provided, through the Trust’s office, an advisory service to those enquiring about study at Harvard and MIT. Applications were submitted online, through the Trust’s website, and 191 applications were received. In January 2021, 25 outstanding candidates were called to interview. Due to UK lockdown restrictions at that time, these interviews were conducted online via video-conferencing software. Following the interviews, nine students were provisionally selected to receive scholarships.

It was possible to confirm eight awards in May 2021 after the students’ admission to Harvard or MIT. In addition, Scholarships were confirmed for six students initially selected in 2020 whose plans to attend Harvard in the 202021 academic year were disrupted by the coronavirus pandemic. In addition to the new and deferred awards, two grantees will receive full tuition and health insurance fees for a second year, enabling them to continue or complete their degrees.

The Trust also offers each new Kennedy Scholar the opportunity to apply for a summer travel grant, to undertake extended exploration of the United States following conclusion of the academic year. The Trustees have offered Kennedy Scholars from 2019-20 and 2020-21 the chance to apply for these grants in 2021-22, since they had to return to the UK early due to the pandemic in Spring 2020, or, in the case of 2020-21 Scholars, had to study remotely and were unable to travel to the US.

Kennedy Summer Research Scholarships enable British citizens enrolled on doctoral programmes at Harvard and MIT to complete a particular research project over the summer. Harvard International Office and MIT’s Manager of Graduate Fellowships advertised the opportunity on behalf of the Trust in the late autumn of 2020. Eight applications were received by early January 2021 and the Trustees made five awards.

The Trustees stayed in contact with former Kennedy Scholars through email updates throughout the year, online events, and their support of the Kennedy Scholars’ Association – a membership organisation for former Kennedy Scholars.

Achievements and Performance

Financial Review

Within the 2020-2021 financial year, the disruptions caused by the COVID-19 pandemic have had some impact on the Trust’s income and expenditures. While investment performance strengthened significantly throughout the year, the Trust’s income from investments was lower than in recent years due to dividend reductions, with £181,048 received in 2020-21 (2020: £224,907). As many charities have experienced this past year, the Trust’s income from donations was also somewhat reduced. The Trust received donations and legacies of £98,074 in 2020-21 (2020: £217,102). Operationally, the Trust’s expenditure was somewhat reduced in 2020-21 as in-person events which the Trust would normally hold over the course of a year could not go ahead due to lockdown restrictions and social distancing measures. Operational costs remained steady as the Trust retained its office and had certain continuing overhead expenses while putting in place arrangements for the Director to work remotely.

5

The Kennedy Memorial Trust

Report of the Trustees for the year ended 30 April 2021 (Continued)

For the year ended 30 April 2021, the Trust made a surplus of £2,696,439 compared with a deficit of £496,450 for the year ended 30 April 2020. This includes net investment gains of £2,731,528 (2020: losses of £155,317). Excluding the investment losses / gains, the Trust incurred a deficit of £35,900 (2020: Deficit £341,133) in the year. As a result of the coronavirus pandemic Harvard and MIT shifted to remote education throughout the 2020-21 academic year. This meant that international students would be unable to procure visas to study in the United States, while travel restrictions and lockdown measures in both countries made relocation impossible. As a result, the Trustees agreed to defer Kennedy Scholarships for six awardees originally offered awards in May 2020. Two awardees elected to undertake their studies remotely, and the Trustees agreed to provide scholarship support while they remained in the UK.

As such, the Trust met the full tuition fees and health insurance costs for two Kennedy Scholars in 2020-21. One of these scholars also received a full means-tested stipend of $27,250, while the other declined stipend support for 2020-21. The Trust also provided further funding to one Scholar from 2019-20 to enable them to continue their Harvard programme, providing a contribution towards tuition, covering health insurance costs, and providing a partial stipend.

Since the new Scholars had to study remotely from the UK throughout the year, the Trust did not provide its normal contribution to return air tickets to Boston. The Trustees have agreed to make that contribution available to 202021 Scholars for future travel to the United States.

Typically, the Trust offers a grant of $2,500 for each Scholar to travel within the United States at the end of the academic year, following an application process. Given the disruptions to US travel, however, no such grants were made in 2020-21. The Trustees have instead extended the timeframe in which 2020-2021 Scholars can apply for and use these grants until March 31, 2022. Similarly, since 2019-2020 Scholars were unable to apply for these grants and undertake summer travel in 2020, the Trustees will consider them eligible to apply until March 31, 2022.

The Trust also awarded five Kennedy Summer Research Scholarships in March 2021 of up to $3,000, for which a proposal had been submitted in January. These awards are open to UK citizens enrolled on doctoral programmes at Harvard and MIT, in order to fund particular research during the summer of 2021.

Kennedy Scholarships are awarded in the expectation that Scholars will bring the benefits of their American experience back to the UK.

A large proportion of the expenditure within the accounts is paid in US dollars, and then converted into pounds for the purpose of these accounts. Movements in the exchange rate between the US dollar and sterling can affect the stated results and, because of these movements, the Trust recognised a transaction loss of £50,866 in the year (2020: transaction gain of £10,108). Total expenditure in the year amounted to £314,301 (2020: £783,142). Analysis of the expenditure is shown in notes 4 and 5.

In recent years, Trustees have decided that there is an overriding need to send a reasonably-sized cohort of Scholars to the US. Though the coronavirus pandemic impacted the cohort size in 2020-21, the Trustees’ aim remains a cohort size of approximately ten in normal circumstances. It is hoped that any gap between income and expenditure arising will be met by a fundraising campaign. Some fundraising efforts are already under way, but the Trustees plan to initiate a more significant fundraising campaign in the coming years, and the continuation of the Scholarships in their current form depends on this. Fees charged vary considerably between the different Graduate Schools at Harvard and MIT and are increased year-on-year at varying rates. The particular schools attended in a given year therefore affect the average cost of a Kennedy Scholarship in that year.

6

The Kennedy Memorial Trust

Report of the Trustees

for the year ended 30 April 2021 (Continued)

Investment Policy and Performance

BlackRock Investment Management acts as investment adviser to the Trust and manages its funds. There are no restrictions on the charity’s power to invest. The Finance Trustee, in consultation with the Chair and Trustees, reviews the performance of the portfolio and determines an appropriate investment strategy.

The initial market impact of the coronavirus pandemic in March 2020 had led to a sharp drop in the value of the Trust’s investments, but by the start of the 2020-21 financial year the Trust’s investments had recovered somewhat. By 31 May 2020 the Trust’s endowment stood at £14.4 million, approximately 4.4% below its value at the end of calendar year 2020. The endowment value has continued to strengthen throughout the financial year, with a yearend value as of 30 April 2021 of £16,852,908, compared to the previous year-end value as of 30 April 2020 of £13,692,832. Nonetheless, the Trustees continue to monitor the situation closely, recognising that the economy remains precarious as countries move out of restrictive lockdown measures. They note that investment income may continue to be affected as a result of dividend reductions, and due to a change in investment strategy as discussed below.

For 2020-2021, the income return on investments was 1.32% (2020: 1.54%). The total return, including capital gains was 21.27% (2020: 0.47%) which is comparable with the benchmark return to 30 April 2021 of 21.49%.

Moving forward, the Trust has made a significant alteration in its investment portfolio, reinvesting just under half of its endowment in an Environmental, Social, and Governance (ESG) fund offered by BlackRock. This followed substantial discussion among the Trustees, initially at the June 2020 Trustee meeting, to adopt an investment strategy that more consciously advanced environmental sustainability and social responsibility. Significant financial analysis was undertaken to select the appropriate fund, with the Trustees noting that the financial performance of the fund ultimately selected had exceeded that of the non-ESG fund in which the Trust was currently invested, drawing on data from the fund’s past five years performance. The transfer was finalised in late April 2021 and thus will be reflected more fully in the 2021-2022 accounts. The new ESG fund is an accumulating fund and does not distribute income, thus the Trustees are aware that overall investment income will be significantly reduced in the next and future years. The Finance Trustee will continue to monitor available ESG funds and the Trustees may consider moving more of the Trust’s investments to such alternative funds in future.

The ratio of US dollar to GBP sterling investments matched the ratio of anticipated dollar and sterling expenditure.

Trustees recognise that share values can both increase and decrease, especially amid the current uncertainty. The following table shows the value of the Trust’s investments over the past 10 years.

£ £
2012 9,229,560 2017 13,829,142
2013 10,231,790 2018 13,845,916
2014 10,378,122 2019 14,525,448
2015 11,681,986 2020 13,692,832
2016 11,544,946 2021 16,852,908

Reserves Policy

The Trust’s objective is to maintain in perpetuity the Kennedy Memorial at Runnymede and to grant the scholarships that bear President Kennedy’s name. Mindful of this, the Trustees seek to balance the interests of the current and future beneficiaries of the Trust’s work. As noted above, Trustees have decided that the need to ensure that each group of Scholars is reasonably large justifies departing from the previous policy of limiting the annual withdrawals from the fund to around 4% of its average value over the previous three years. The total funds as at 30 April 2021 stand at £17,114,736 (2020: £14,418,297) and free reserves as at 30 April 2021 stand at £15,955,019 (2020: £14,347,119).

7

The Kennedy Memorial Trust

Report of the Trustees for the year ended 30 April 2021 (Continued)

Reserves Policy continued

The Trustees maintain a designated reserve to ensure the Trust can always sustain its obligations to the Kennedy Memorial. The Trustees review the reserves annually when deciding how many scholarships to award at interview. In January 2014, a risk reserve, now reclassified as a designated reserve, of £1,000,000 was agreed which, for the year to 30 April 2021, was upgraded to £1,088,539 in line with the Consumer Price Index. Trustees recognise that their dependence upon investment returns, coupled with persistent above-inflation increases in course fees at Harvard and MIT may mean that the ability to award Kennedy Scholarships will finish at some point unless significant further endowed funding is raised. Nonetheless, the Trustees are confident that the Trust remains a going concern for the foreseeable future. The deferment of some Kennedy Scholarships from 2020-2021 to 20212022 has enhanced the Trust’s reserves this year, and although additional scholarship expenditure is anticipated in 2021-22 – with the Trust supporting both deferred awardees and several new Kennedy Scholars – the savings this year should ensure the Trust’s reserves are protected.

The Trustees take the view that the reserve level is acceptable in the current economic climate. It significantly exceeds the designated reserve needed for the long-term obligation to the Kennedy Memorial at Runnymede and provides an acceptable level of reserves to manage unexpected and year-to-year variations in the costs of Kennedy Scholarships. They hope that income received from fundraising will increase the resources available for Kennedy Scholarships to sustain the Trust in perpetuity.

Future Plans

The Trustees will continue to disburse funds in accordance with the governing documents of the Trust and seek to ensure widespread awareness of Kennedy Scholarships within appropriate departments of British universities, university colleges and other places of higher education.

Harvard and MIT are planning for a return to in-person teaching in Fall 2021, ensuring that international students can secure US visas. While there may be lingering effects of the coronavirus pandemic in terms of some travel or local restrictions on an ad hoc basis, the Trustees are hopeful that Kennedy Scholars studying in 2021-22 will be able to relocate to the United States as normal. The Trustees are also hopeful that in-person Trust events and activities can resume in the near future. The experience of digital engagement over the past year, however, has demonstrated the value of online events for engaging with a wider audience, particularly with alumni and supporters living overseas, prospective scholarship applicants, and the public at large. The Trust therefore intends to continue integrating an online dimension into its overall programme of activities.

Trustees’ Responsibilities in relation to the financial statements

The Charity Trustees are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Charity Law requires the Charity Trustees to prepare accounts for each year which give a true and fair view of the state of affairs of the Trust and of the income and expenditure of the Trust for that period. In preparing the financial statements the Trustees are required to:

8

The Kennedy Memorial Trust

Report of the Trustees

for the year ended 30 April 2021 (Continued)

The Trustees are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the Trust and which enable them to ascertain the financial position of the Trust and ensure that the accounts comply with the Charities Act 2011 and trust deed. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement as to disclosure to our auditors

In so far as the Trustees are aware at the time of approving our Trustees’ annual report:

There is no relevant information, being information needed by the auditor in connection with preparing their report, of which the charity’s auditor is unaware, and the Trustees, having made enquiries of fellow Trustees and the charity’s auditor that they ought to have individually taken, have each taken all steps that he/she is obliged to take as a Trustee in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

By order of the board of Trustees

Professor Sir Mark Walport Chairman

Dated: Jul 8, 2021

9

The Kennedy Memorial Trust

Independent auditor’s report to the Trustees of Kennedy Memorial Trust

Opinion

We have audited the financial statements of The Kennedy Memorial Trust (the ‘charity’) for the year ended 30 April 2021 which comprise the statement of financial activities, the balance sheet and the notes to the financial statements, including the principle accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the Report of the Trustees and Financial Statements, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

10

The Kennedy Memorial Trust

Independent auditor’s report to the trustees of Kennedy Memorial Trust

We have nothing to report in this regard.

Opinion on other matters prescribed by the Charities Act 2011

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the accounts

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

11

The Kennedy Memorial Trust

Independent auditor’s report to the trustees of Kennedy Memorial Trust

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

12

The Kennedy Memorial Trust

Independent auditor’s report to the Trustees of Kennedy Memorial Trust

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Chapter 3 of Part 16 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity’s members those matters that we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, or the opinions we have formed.

Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL

Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

Date: 23 July 2021

13

The Kennedy Memorial Trust

Statement of Financial Activities for the year ended 30 April 2021

Total Total Total
Unrestricted Unrestricted
Note 2021 2020
£ £
Income and endowments from:
Donations and legacies 98,074 217,102
Investment Income 3 181,138 224,907
_ _
Total Income 279,212 442,009
Expenditure: _ _
Charitable activities:
Runnymede Memorial expenses 4 6,071 8,532
Graduate scholarships and expenses 5 256,974 722,929
Scholarship application costs 5 51,256 51,681
__ _
Total expenditure 314,301 783,142
__ _
Net expenditure before gains on investments (35,089) (341,133)
Net gains / (losses) on investments 8 2,731,528 (155,317)
__ _
Net income / (expenditure) and net
movement in funds for the year 2,696,439 (496,450)
Reconciliation of funds:
Total funds brought forward 14,418,297 14,914,747
___ ___
Total funds carried forward 17,114,736 14,418,297
___ ___

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 13 to 22 form part of these financial statements.

14

The Kennedy Memorial Trust

Balance sheet at 30 April 2021

Note
2021
£
Fixed assets
Tangible fixed assets
7
Investments
8
Total Fixed Assets
Current assets
Sundry debtors and prepayments
9
10,721
Cash and bank balances
661,015
_
Total Current Assets
671,736
Liabilities
Creditors: amounts falling due
within one year
10
(481,086)
_
Net current assets
Net assets
Financed by:
Funds of the charity
Unrestricted income funds:
13
Designated funds:
13
Total funds:
Approved on behalf of the Trustees on8thJuly 2021		 2021
2020		 2020
£
71,178
13,692,832
_
13,764,010
654,287
_
14,418,297
£
£
71,178
16,852,908
_
16,924,086
7,339
690,639
_
697,978
(43,691)
_
190,650
_
17,114,736
_
16,026,197
1,088,539
_
17,114,736
___
_
14,418,297
-
_
14,418,297
___

Professor Sir Mark Walport - Trustee

Ms Tilly Franklin - Trustee

The notes on pages 13 to 22 form part of these financial statements

15

The Kennedy Memorial Trust

Notes forming part of the financial statements for the year ended 30 April 2021

1 Status

The Trust was established by the trust deed dated 4 July 1964 and amended 11 July 2007.

2 Accounting policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below:

Basis of accounting

These financial statements have been prepared for the year to 30 April 2021.

The financial statements have been prepared under the historical cost convention with items initially recognised at cost or transaction value unless otherwise stated in the relevant accounting policy note.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) (Charities FRS 102 SORP), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), Companies Act 2006 and the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102.

The accounts are presented in sterling and are rounded to the nearest pound.

Critical accounting estimates and areas of judgement

There are no significant areas of adjustment or key assumptions that affect items in the financial statements. With respect to the next reporting period, the most significant areas of uncertainty are the carrying value of investment assets held by the charity, which will depend on the performance of investment markets and the investment income from these assets.

As set out in these accounting policies under “going concern”, below, the trustees have considered the impact of the pandemic on the charity and have concluded that although there may be some negative consequences, it is appropriate for the charity to continue to prepare its accounts on the going concern basis.”

Going concern

The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustees have made this assessment in respect to a period of one year from the date of approval of these financial statements.

The Trustees are of the opinion that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The Trustees are of the opinion that because the value of assets held by the charity are very materially in excess of the liabilities of

16

The Kennedy Memorial Trust

Notes forming part of the financial statements for the year ended 30 April 2021

2 Accounting policies (Continued)

the charity and the level of commitments in respect of grants approved for projects payable in future years.

Income

Income is recognised in the period in which the charity is entitled to receipt, the amount can be measured reliably and it is probable that the funds will be received.

Income is deferred only when the charity has to fulfil performance related conditions before becoming entitled to it or where the donor or funder has specified that the income is to be expended in a future accounting period.

Income comprises donations, interest receivable and dividends from listed investments.

Donations are recognised when the charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred as noted above.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Expenditure

Expenses are accounted for on an accruals basis.

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. Expenditure is comprised of direct costs and support costs. All expenses, including support costs, are allocated or apportioned to their applicable expenditure headings. The classification between activities is as follows:

Support costs, which include governance costs, have been allocated to graduate scholarships and scholarship application costs.

All expenditure is inclusive of irrecoverable VAT.

Cost apportionment

Within expenditure on charitable activities, costs are allocated directly either to postgraduate scholarships and scholarship application costs where possible:

17

The Kennedy Memorial Trust

Notes forming part of the financial statements for the year ended 30 April 2021 (Continued)

2 Accounting policies (Continued)

b. Scholarship application costs comprise of costs for processing grants and applications, including support of actual and potential applicants.

Costs that cannot be directly attributable to either of these activities are apportioned on the basis of the time spent by the Director, which is estimated at 67% on current post-graduate scholarships and 33% on scholarship applications.

Tangible fixed assets

Tangible fixed assets are stated at cost less depreciation. All assets costing more than £500 and with an expected useful life exceeding one year are capitalised. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful economic life as follows:

20% - 30% per annum on cost

No depreciation is provided on the Runnymede Memorial. The land was gifted to the charity in perpetuity in 1964 in memory of President John F. Kennedy. In view of the nature of the Memorial and its indefinitely long useful life, the trustees do not believe that a reliable valuation can be placed on the land. The book value of the memorial shown at ‘cost’ as it is not considered to have been impaired. Since the charity is responsible for keeping the memorial in an unspoilt condition, the costs of doing so are written off as and when incurred.

Investments

Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.

The charity does not acquire put options, derivatives or other complex financial instruments.

Realised gains (or losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value at that date. Realised and unrealised investment gains (or losses) are combined in the statement of financial activities and are credited (or debited) in the year in which they arise.

The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

Debtors

Debtors are recognised at the settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short-term deposits. Cash placed on deposit for more than one year is disclosed as a fixed asset investment.

18

The Kennedy Memorial Trust

Notes forming part of the financial statements for the year ended 30 April 2021 (Continued)

2 Accounting policies (Continued)

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

Fund accounting

Unrestricted funds: these comprise the accumulated excess of income over expenditure on the Statement of Financial Activities. They are available for use at the discretion of the Trustees in furtherance of the general objectives of the Trust.

Designated funds: these are unrestricted funds which are allocated at the discretion of the Trustees, to projects in furtherance of the general objectives of the Trust.

Foreign currency

Foreign currency transactions are translated into sterling at the rates ruling when they occurred. Foreign currency monetary assets and liabilities are translated at the rates ruling at the balance sheet dates. Any differences are taken to the Statement of Financial Activities.

Taxation

The Kennedy Memorial Trust is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

Leased assets

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the statement of financial activities on a straight-line basis over the term of the lease.

Pension contributions

Contributions to the personal pension schemes of the charity’s employee are charged to the statement of financial activities when they are payable to the scheme. The assets of the scheme are administered in a fund which is independent from the charity.

Statement of cash flows

The financial statements do not include a cash flow statement, because the charity, as a small reporting entity is exempt from the requirements to prepare such a statement under FRS 102.

19

The Kennedy Memorial Trust

Notes forming part of the financial statements for the year ended 30 April 2021 (Continued)

3 Investment income

Dividends - UK listed investments
Dividends - US listed investments
Interest - UK fixed interest securities
Interest on cash deposits		 2021
£
82,392
98,656
-
90
_
181,138
 2020
£
89,564
134,045
322
976
_
224,907

4 Runnymede Memorial Expenses

Annual maintenance
Footpath repairs		 2021
£
6,071
-
_
6,071
 2020
£
5,967
2,565
_
8,532

20

The Kennedy Memorial Trust

Notes forming part of the financial statements for the year ended 30 April 2021 (Continued)

5 Analysis of charitable expenditure

Post
Graduate
Scholarships
£
Scholarship
Application
Costs
£
University and stipend fees
143,232
-
Student travel and expenses
1,782
58
Summer research scholarships
10,770
-
Programme support costs
-
1,358
155,784
1,416
Staff costs
46,256
22,782
Premises costs
7,101
3,497
Administration costs
2,215
1,092
Exchange losses / (gains)
34,080
16,786
Contributions Frank Knox Fellows
(14,650)
(7,216)
75,002
36,941
Cost met by specific conditions
14,650
7,216
89,652
44,157
Governance Costs
Accountancy
4,943
2,434
Audit fee
4,422
2,178
Legal and professional
2,173
1,071
11,538
5,683
Total costs for year
256,974
51,256		 Total
2021
£
143,232
1,840
10,770
1,358
157,200
69,038
10,598
3,307
50,866
(21,866)
111,943
21,866
133,809
7,377
6,600
3,244
17,221
308,230		 Total
2020
£
601,083
36,040
2,500
10,855
650,478
99,386
10,423
7,269
(10,018)
(20,695)
86,365
20,695
107,060
8,451
5,200
3,421
17,072
774,610

21

The Kennedy Memorial Trust

Notes forming part of the financial statements for the year ended 30 April 2021 (Continued)

5
Analysis of charitable expenditure – Comparative 2020
Post
Graduate
Scholarships
£
Scholarship
Application
Costs
£
University and stipend fees
601,083
-
Student travel and expenses
31,790
4,250
Summer research scholarships
2,500
-
Programme support costs
4,388
6,467
639,761
10,717
Staff costs
66,588
32,798
Premises costs
6,984
3,439
Administration costs
4,870
2,399
Exchange (gains)
(6,712)
(3,306)
Contributions Frank Knox Fellows
(13,866)
(6,829)
57,864
28,501
Cost met by specific conditions
13,866
6,829
71,730
35,330
Governance Costs
Accountancy
5,662
2,789
Audit fee
3,484
1,716
Legal and professional
2,292
1,129
11,438
5,634
Total costs for year
722,929
51,681
Total
2020
£
601,083
36,040
2,500
10,855
650,478
99,386
10,423
7,269
(10,018)
(20,695)
86,365
20,695
107,060
8,451
5,200
3,421
17,072
774,610

During the year 3 scholarships were awarded, 2 with full liability and 1 partial renewal (2020: 9 with full liability, 2 doctoral students with partial or no liability, and 2 partial renewals), amounting to £111,499 or $150,428 (2020: £467,438 or $564,044). Stipends of £20,424 or $27,250 for living expenses were awarded to 1 scholar (2020: 6 scholars £19,828 or $26,000). 1 Scholar received a stipend of £11,306 or $15,000 (2020: £12,295 or $15,000).

22

The Kennedy Memorial Trust

Notes forming part of the financial statements for the year ended 30 April 2021 (Continued)

6 Trustees and employees

The staff costs of the Trust are shown above in note 5. The average number of full time equivalent employees in the year was:

Administration 2021
Number
1
 2020
Number
1.5

One employee earned between £60,000 - £70,000 (2020: No employee earned more than £60,000. The Trust made pension contributions on behalf of the employees of £6,031 (2020: £9,754).

No Trustee received any remuneration in either year.

No Trustees had expenses reimbursed. (2020: 3 Trustees were reimbursed £1,961) in respect of travel, accommodation and subsistence.

The key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day-to-day basis comprise the Trustees and the Director.

Total remuneration paid to key management personnel for the year was £69,038 (2020: £99,386).

7 Fixed assets

Runnymede
Memorial
£
Cost
At 1 May 2020
71,178
Disposals
-
_
30 April 2021
71,178
_
Depreciation
At 1 May 2020
-
Charge for the year
-
Elimination on disposal
_
At 30 April 2021
-
_
Net book value
At 30 April 2021
71,178
_
At 30 April 2020
71,178
 Total
£
74,785
-
_
71,178
_
-
-
-
_
-
_
71,178
_
71,178

23

The Kennedy Memorial Trust

Notes forming part of the financial statements for the year ended 30 April 2021 (Continued)

8
Investments
Market value at 1 May
Additions
Disposals
Realised gains
Net unrealised investment gains
Cash deposit movement
Market value at 30 April
Historical cost £15,090,938 (2020: £12,475,618)		 2021 2020
£
14,525,448
1,031,111
(1,708,811)
131,932
(287,249)
401
_
13,692,832
_
£
13,692,832
8,856,987
(8,858,893)
2,001,525
730,003
430,454
_
16,852,908
_
The valuation at 30 April 2021 comprises:
Investments listed on a recognised Stock Exchange including unit trusts
UK listed investments – managed funds
Overseas – managed funds
Cash deposits		 2021
£
2,327,054
14,093,676
432,178
___
16,852,908
 2020
£
2,032,028
11,659,079
1,725
___
13,692,832

The following investments comprise more than 5% of the value of the total portfolio:

Charitrak UK
BR ISHS DVLPD WRLD IDX
BR ISHS DEV WD ESG IDX
BR BGF EMG MKTS EQTY
BR ISHS GBL INFL LKD IDX
BR UK Property
ISHS CORE WORLD		 2021
£
1,659,687
-
7,615,130
1,634,637
3,896,088
667,367
947,821
 2020
2021
2020
£
%
%
1,396,865
10
10
6,581,926
-
48
-
46
-
1,401,040
10
10
3,015,915
24
22
635,162
4
5
660,199
6
5

24

The Kennedy Memorial Trust

Notes forming part of the financial statements for the year ended 30 April 2021 (Continued)

9
Sundry debtors and prepayments: amount falling due within one year
Other debtors
Prepayments and accrued income
10
Creditors: amounts falling due within one year
Other creditors
Tax and social security creditor
Accruals and deferred income		 2021 2020
£
654
6,685
_
7,339
_
 £
5,900
4,821
_
10,721
_
2021
£
429,900
1,476
49,730
_
481,086
 _
_ _ _
2020
£
936
1,389
41,366
_
43,691

11 Pensions

The Trust pays contributions to employees’ individual pension policies. The policies provide for benefits on a defined contribution basis and the assets underlying each policy are held by the pension provider. The pension cost charge represents the contributions payable by the Trust and amounted to £6,031 (2020: £9,754).

12 Financial commitments

At 30 April 2021 the Trust had commitments under non-cancellable operating leases as follow.

Land and Buildings Land and Buildings
2021 2020
£ £
Operating lease payments due:
within one year 7,864 7,864
later than one year and not later than five years 2,632 10,496
_ _
Total 10,496 18,360

25

The Kennedy Memorial Trust

Notes forming part of the financial statements for the year ended 30 April 2021 (Continued)

13 Unrestricted funds

Balance Income Expenditure Realised Transfers Balance
1 May and 30 April
2020 unrealised 2021
investment
gains
Unrestricted funds 14,418,297 279,212 (314,301) 2,731,528 (1,088,539) 16,026,197
Designated Funds
Runnymede memorial - - - - 1,088,539 1,088,539
___ ___ ___ ___ ___ ___
14,418,297 279,212 (314,301) 2,731,528 (1,088,539) 17,114,736

The designated Runnymede memorial fund represents funds set aside for the perpetual maintenance of the memorial.

14 Related Party Transactions

During the year, the Tuixen Foundation, of which Dr Peter Englander is a trustee, donated £25,000 to the charity (2020: £25,000).

During the year, the charity received donations from Trustees amounting to £2,200 (2020: £15,520).

There were no amounts outstanding at the year-end (2020: £nil).

26