The Kennedy Memorial Trust Report and Financial Statements Year Ended 30 April 2022 Registered Charity number 234715
The Kennedy Memorial Trust Annual report and financial statements for the year ended 30 April 2022 Contents Page.. Report of the Trustees 10 Report of the independent auditors Statement of financial activities 14 Balance sheet Notes forming part of the financial slatements 25 Appendix.. Stalistical Report on the 2022-23 Kennedy Scholarship competition Reference and Administrative Information: 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 walla OBE Prof Sir Mark Walport (Chairman) Prof Andrew Whittle Patrons The Rl Hon The Lord Mayor of London- Sir William Russell {unlil 11120211., Vincent Keaveny (from 1112021) The Governor of the Bank of England - Andrew Bailey Director and Principal Address Dr Emily Charnock, The Kennedy Memorial Trust, 3 Birdcage Walk, London, SW1 H 9JJ Accountsnt Arabis Accountancy servIs Ltd Ware Hertfordshire SG12 8JL Auditors Buzzacott LLP 130 Wood Street London EC2V 6DL Bankers The Royal Bank of Scotlanij plc 62163 Threadneedle Street PO Box412155 LONDON EC2R 8LA Investment Managers BlackRo¢k Investment Management (UK) Limited 12 Throgmorton Avenue LONDON EC2N 2DL Solicitors Messrs Stone King LLP Boundary House 91 Charterhouse Street LONDON EC1M 6HR Charity number 234715
The Kennedy Memorial Trust Report of the Trustees for the year ended 30 Aprll 2022 The Tnjstees present their report and the audited financial statements for the year ended 30 April 2022. status and Administration The Trust is an unincorporated charity, Charity No. 234715, govemed by a trust deed dated 4 July 1964 and amended 11 July 2007. Ils principal activity is lo administer the Memorial Fund set up lo commemorate President John F Kennedy. The Memorial lakes two forms.. a memorial in landscape and stone at Runnymede the award of Kennedy Scholarships each year to British graduate students to attend Harvard University and the Massachusells Institute of Technology. The Trustees who served during the year were.. Mr Matt Clifford MBE Dr Peter Englander OBE Ms Stephanie Flanders Ms Tilly Franklin (Finance Trustee) Prof Maya Jasanoff Prof Fiona Macpherson Ms Mary Ann Sieghart (Senior Independent Trustee) Ms Moira Wallace OBE Prof Sir M8rk Walport (Chairmanl Prof Andrew Whillle The day-to-day running of the Trust is delegated to the Director.
The Kennedy Memorial Trust Report of the Trustees for the year ended 30 April 2022 (Contlnuedj Strudure, 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 formally composed of eight United Kingdom Trustees and three United Slates 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 re1ve 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 under Reference and Administrative Information. 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 IMIT}- In the former Case, the United States Ambassador lo the Court of St James's usually serves as a Trustee ex-officio, bul following a change of presidential administration a new Ambassador was not confirmed until May 2022. The Trustee body thus consisted of len members throughout the 2021-22 financial year. 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 twi a year. In January 2022, the Board reviewed and approved projected spending on awards for the following financial year. Key management personnel The key management personnel of the charity, responsible for directing and controlling, running and operating the charity on a day-lo-day basis, comprise the Trustees together with the Director. Trustees do not re1ve remuneration in respect of their ServIS lo 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 practi in the way in which it communicates with supporters. It lakes 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 organisalions, and respects its donors, communication preferens. The charity manages ils own fundraising activities and does not generally employ the ServIS of professional fundraisers. The charity undertakes lo react to and investigate any complaints regarding its fundraising activities and to leam from them and improve its service. During the year, the charity received no complaints about ils fundraising activities.
The Kennedy Memorial Trust Report of the Trustees for the year ended 30 April 2022 (Contlnuedj Management of Principal Risks and Uncertainties In 2001, Trustees conducted a major review of the risks lo which the charity was exposed, including those related lo the operations and finances of the Trust and those specifically related to the memorial at Runnymede. This exercise was repealed in 2009 and in June 2021. The risk register is reviewed annually by the Board, having regard lo the size and objects of the Trust, and seeking lo ensure that appropriate measures are in place lo miligale the Trust's exposure lo major risk. Ongoing monitoring is delegated lo 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. The number of scholarships awarded each year is related to affordability. A new fundraising Campaign is being planned to strengthen the endowment for the future. 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 regulady 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 dats in an online application system, or other ijala breach. The Trust uses a reputable company for ils online application system, which employs password-prolecled access to individual data. encryption and SSL security certificates for safe dats transmission. 11 has robust disasler-recovery pr0dUreS. 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, al a level researched and market-lested in 2016, to ensure that any claim from a member of the public could be mel. In addition, there are signs throughout the site warning visitors of heightened risks in wel 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, which continued thmughout 2021-22, the Trust has enhanced ils digital capabilities and adapted ils prOdureS 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 fa disruptions lo international travel or US universities are forTrd to temporarily close their campuses. The Trustees have developed flexible policies to support grantees and adapt lo new circUmstans.
The Kennedy Memorial Trust Report of the Trustees for the year ended 30 April 2022 (Contlnuedj Objectives and Activities of the Trust for the Public Benefit In accordance with the governing documents, the objective of The Kennedy Memorial Trust is lo 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 al the oulsel by the British public in response lo 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 al Runnymede, in Surrey, and a living memorial offering Kennedy Scholarships lo British postgraduate students admilled 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 aCsS 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 lo lake advantage of particular educational opportunities. Tuition costs are high al 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-lype institutions with associated advertisements. Full application details are available on the Trust's website: www.kenned rust.o .uk. Applicants must be British citizens at the lime 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 lo 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 len years prior to 1 September in the year of award. In awarding Kennedy Scholarships, the Trustees particularfy welcome applicants with a strong public-service ethos. They take into consideration candidates, intellectual allainment. readiness and ability to express themselves, and 8 well- researched and argued case for their proposed course of study at Harvard or MIT. They also look for originality of mind, potential lo make a mark in public life and the ability to overcome adversity. Awards are made in the expectstion that Kennedy Scholars will bring the benefits of their American experience back lo the United Kingdom. In rent years, the Trustees have also awarded Kennedy Summer Research Scholarships, first offered in the financial year lo 30 April 2018, to British citizens who are enrolled on doctoral programmes at Harvard and MIT. These have been awarded through a separate application process in support of particular research projects, and are offered to broaden the reach of Kennedy Scholarships. The Summer Research Scholarships were temporarily suspended during the 2021-22 financial year, due to a combination of the coronavirus pandemic impacting research travel plans of prior applicants, and the Director being on maternity leave during the normal application period. The Trust maintains contact with fom)er Kennedy Scholars and typically organises several events for current and former Scholars throughout the year. Due lo the continuing global comnavirus pandemic, however, the Trust was not able lo resume ils normal events programme in 2021-22, bul as UK reslriclions eased an annual lecture and dinner was held in September 2021. This was organised as a hybrid event, with a socially-dislanced in-person event and a live-stream of the lecture via video conferencing software. The Trustees look forward to resuming other events in 2022-23, including an annual summer fftception, but intend lo hamess the benefits of digital technology for reaching wider audiences- including alumni living overseas- moving forward. In fulfilling their obligations throughout the year, the Trustees have had regard to the guidance issued by the Charity Commission on public benefil.
The Kennedy Memorial Trust Report of the Trustees for the year ended 30 April 2022 (Contlnuedj Grant-making Policy Kennedy Scholarships enable leading British graduates who are also British citizens lo benefit from the broad educational opportunities available al both Harvard and MIT, two world-leading universities, without having lo meet the considerable costs involved. President Kennedy himself sludied al Harvard. MIT was chosen because of the President's keen interest in seeing technological adVanS reflected in government and international affairs. In August 2021, all British universities and university colleges were notified of the forthcoming Kennedy Scholarship competition and advertisements were placed on a range of websites and social media plaormS. The Trustees have provided, thmugh the Trust's office, an advisory Servi to those enquiring about study at Harvard and MIT. Applications were submitted online, through the Trust's website, and 141 applications were received. In January 2022, 24 outstanding candidates were called to interview. Due to a rise in UK COVID cases at that time, these interviews were condLJCted online via video-conferencing software. Following the interviews, eight students were provisionally selerted to re1ve scholarships. It was possible to confirm seven awards in May 2022 after the students, admission to Harvard or MIT. In addition, one Scholarship was confirmed for a student initially selected in 2020 whose plans to attend Harvard in the 2021- 21 academic year were disrupted by the coronavirus pandemic. Beyond the new and deferred awards, two grantees will re1ve full tuition and health Insuran fees for a second year, enabling them to continue or complete their degrees. The Trust also offers each new Kennedy Scholar the opportunity lo apply for a summer travel grant, to undertake extended exploration of the United Stales following conclusion of the academic year. The Trustees also offered Kennedy Scholars from 2019-20 and 2020-21 the chance lo apply for these grants in the 2021-22 financial year, since they were unable to undertake US travel al the time due lo COVID disruptions. Ten fomier Scholars applied for and were awarded these grants. The Trustees stayed in contact with fomier 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. Equality. Diversity. and Inclusion The Trust is an educational charity which seeks lo offer scholarship opportunities as widely as possible, recognising the transformative impact that graduate education can have. To this end, the Trust tracks a number of indicators lo evaluate the diversity of applicants to the scholarship programme and at different stages of the selection process, and lo assess the efficacy of ils outreach in lemis of attracting applicants from a broad range of backgrounds within the UK. These measures include ra, ethnicity, and gender identification, as well as indicators of socio-economic and educational background. This data is presented in the Appendix in anonymised form and is made available on the Trust's website. The Trust does not publicise this information for those reIving awards due to data protection Considerations. The Trustees will continue lo monitor these indicators dosely and look to produ a more detailed longitudinal analysis in future. Impact Reporting With the Trust's 60 anniversary approaching in 2024, the Trust plans to produce a comprehensive report charting the impact of its philanthropy over time, particularly in terms of the Scholars supported and their contributions across a range of professional fields, lo public life, and across civil society. The Trustees intend to incorporate aspects of this impact report into the Trustee Report for 2022-23. Achievements and Performance Financial Review Within the 2021-2022 financi81 year. the disruptions caused by the COVID-19 pandemic continued to have some impact on the Trust's income and expenditures. While investment rforManCe strengthened significantly throughout the year, the Trust's income from investments was lower than in recent years due to a change in investments and dividend dislribulions, with £85,451 received in 2021-22 {2021.' £181,138). The Trust's income from donations, however, returned lo typical pre-COVID levels after a drop in the 2020-21 financial year. The Trust received donations and legacies of £196,310 in 2021-2212021= £98,074). Operationally, the Trust's expenditure
The Kennedy Memorial Trust Report of the Trustees for the year ended 30 April 2022 (Contlnuedj continued to be somewhat lower than pre-COVID levels, due lo limitations on holding in-person activities, including intetviews and alumni events. Nonetheless, core operational costs remained steady as the Trust retained its offi in London and had certain continuing overhead expenses. The Director continued lo worf( remotely, with the exception of a period of maternity leave in late 2021 and early 2022. For the year ended 30 April 2022, the Trust made a surplus of £180,268 compared with a surplus of £2,696,439 for the year ended 30 April 2021. This includes net investment gains of £890,179 12021.. Gains £2,731,528). Excluding the investment losses I gains, the Trust incurred a deficit of £709,91112021'. Deficit £35,089) in the year. After switching to remote teaching early in the coronavirus pandemic, both Harvard and MIT returned lo in-person leaching across most programmes in the 2021-22 academic year. This enabled the eight new Kennedy Scholars lo procure visas to study, despite a general ban on travel from the United Kingdom lo the United Slates for part of this time. Due to COVID disruptions, the Trustees had also agreed to defer Kennedy Scholarship8 for six awardees originally offered awards in May 2020, who were able lo defer commencement of their courses until August 2021. As such, the Trust supported fourteen new or deferred Kennedy Scholars studying at Harvard in 2021-22. The Trust met the full tuition fees and health insurance costs for eleven of these Scholars, and provided a full means- lesled stipend of $27,250 for seven of them. One Scholar was awarded a partial stipend following means-testing, while three others declined stipend support for 2021-22. Of the three other Scholars whose tuition and fees were not Covered by the Trust in full, one was a PhD candidate who received departmental support, and was awarded a supplemental research grant from the Trust. Two others were Scholars jointly supported by the Kennedy Trust and the UK Fulbright Commission, where tuition, fees, and stipend costs were shared. The Trust also provided renewed funding lo two former Scholars lone from 2019-20 and one from 2020-211 to enable them to continue their Harvard programmes, covering their tuition and health insurance costs, and providing a small stipend in one case. Typically, the Trust offers a grant of $2,500 for each Scholar lo travel within the United Slates at the end of the academic year, following an application process. Given the disruptions lo US travel in 2020 and 2021, those completing their Scholarships in either year had been unable lo take advantage of this opportunity. The Trustees therefore extended the timeframe in which these former Scholars could apply for and use these grants until March 31, 2022. Of 11 former Scholars eligible to apply, nine applied and were awarded travel grants. In addition, all sixteen current, deferred, or renewed Scholars applied and were awarded travel grants. The Trust also provided financial support for a Ihree-day trip lo Washington DC by current and deferred Scholars an enrichment artivily which had been suspended in 2020 and 2021 due to the coronavirus pandemic. Kennedy Scholarships are awarded in the expertalion that Scholars will bring the benefits of their American experience back to the UK. A large proportion of the expenditure within the financial statements is paid in US dollars, and then converted into pounds for the purpose of these financial slatemenls. Movements in the exchange rale between the US dollar and steding can affect the slated results and, because of these movements, the Trust recognised a transaction gain of £19,788 in the year12021.. transaction loss of £50,8661- Total expenditure in the year amounted to £991,67212021.. £314,301). Analysis of the expenditure is shown in notes 4 and 5. The number of scholarships awarded each year is related lo affordability and Trustees will continue to keep this under review. The Trustees intend lo launch a major fundraising campaign lo ensure that the desired number of awards can be sustainably supported over lime.
The Kennedy Memorial Trust Report of the Trustees for the year ended 30 April 2022 (Contlnuedj Investment Policy and Performance BlackRock Investment Management acted as the Trust's investment adviser and managed ils funds in 2021-22. There are no reslriclions on the charity's power lo invest. The Finance Trustee, in consultation with the Chair and Trustees, reviews the performance of the portfolio and determines an appropriate investment strategy. The robust market for much of the 2021-22 financial year was reflected in the value of the Trust's investments, which reached a high of £17.66 million as of December 31 2021. However, the subsequent market drop in early 2022 combined with inflation has eroded some of the gains made during the previous financial year in real terms. The year-end endowment value was nearly £16.87 million as of 30 April 2022, compared lo £16.85 million as of 30 April 2021. The Trustees continue to monitorthe situation closely, recognising that the economy remains precarious as countries move out of restrictive lockdown measures and lake steps lo manage inflationary presSLJres. For 2021-2022, the income return on investments was 0.520/y12021.. 1.320/ol- The total return, including capital gains was 5.94010 12021= 21.27'/01 which is slightly lower than the benchmark retum to 30 April 2022 of 6.18010. Investment income was impacted by a significant change in the Trust's investment portfolio finalised in late April 2021, where just under half of the Trust's endowment was reinvested in an Environmental, Social, and Governance {ESGI fund offered by BlackRock. in an accumulating rather than distributing share class. This change reflected the Trustees, decision in June 2020 to adopt an investment strategy that more consciously advanced environmental sustainability and social responsibility. In accordance with the Trust's risk management policies, a formal investment management review was undertaken in September-November 2021, with ESG considerations placed alongside financial considerations. A subcommittee of Trustees, led by the Finance Trustee, sought formal proposals from three investment managers, reviewing each in terms of the ESG offer, projected returns, and overall cost. They ultimately selected Amundi Asset Management lo manage the Trust's investments from the 2022-23 financial year onwards. This transfer will be initiated in July 2022. The ratio of US dollar lo 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 Unrtainty. The following table shows the value of the Trust's investments over the past 10 years. 2013 2014 2015 2016 2017 10,231,790 10,378,122 11,681,986 11,544,946 13,829,142 2018 2019 2020 2021 2022 13,845,916 14,525,448 13,692,832 16,852,908 16,865,088 Reserves Policy The TrLJSt's objective is to maintain in perpetuity the Kennedy Memorial al Runnymede and lo grant the scholarships that bear President Kennedy s name. Mindful of this, the Trustees seek to balance the interests of the Current and future benefieiaries of the Trust's work. The number of scholarships awarded each year is related to affordability and Trustees will continue lo keep this under review. The total funds as at 30 April 2022 stand at £17,295,00412021= £17,114,736}- Trustees review the reserve annually when deciding how many scholarships lo award at interview. In January 2014, a risk reserve of £1,000,000 was agreed which. for the year to 30 April 2022, was upgraded lo £1,173,445 in line with the Consumer Price Index. The Trustees are confident that the Trust remains a going concern for the foreseeable future. The Trust has been able lo absorb the significantly increased scholarship expenditure this year las a result of supporting both new and deferred awardeesl, and expects scholarship expenditures in 2022-23 to return lo normal levels.
The Kennedy Memorial Trust Report of the Trustees for the year ended 30 April 2022 (Contlnuedj Reserves Policy continued As such, the Trustees take the view that the level agreed is a¢ptable in the current economic climate. It significantly eXed5 the reserve needed for the long-lerm obligation lo the Kennedy Memorial al Runnymede and provides an acceptable risk reseNe lo manage unexpected and year-to-year variations in the costs of Kennedy Scholarships. They plan on the basis that income received from fundraising will increase the resour$ available for Kennedy Scholarships so as to sustain the Trust in perpetuity, and are preparing lo launch a major new fundraising initiative lo that end. Future Plans The Trustees will continue to disburse funds in accordance with the goveming documents of the TrLJSt and seek to ensure widespread awareness of Kennedy Scholarships within appropriate departments of British universities, university colleges and other places of higher education. While there may be lingering effects of the coronavirus pandemic for some time, the Trustees expect teaching at Harvard and MIT to remain in-person and believe that the Trust's normal events schedule can resume in 2022-23. Despite the challenges of the COVID-19 pandemic, the Trustees hope lo harness some of the positive changes which emerged during this period, such as the experience of digital engagement wlh alumni and wider audiences, and the operational benefits of the digital shift neSsI1ated by COVID. Since remote working arrangements have proved successful, the Trustees plan to close the Trust's London office in 2022-23. A new fundraising campaign is being planned lo strengthen the endowment for the future. Trustees, Responsibilities in relation to the financial statements The Charity Trustees are responsible for preparing 8 trustees, annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdom Generally Accepted Accounting Practice). Charity Law requires the Charity Trustees lo 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.. select suitable accounting policies and apply them consistently., observe the methods and principles in the Charities SORP., make judgments and estimates that are reasonable and prudent., slate whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the accounts., prepare the financial statements on the going-conrn basis unless it is inappropriate to presume that the Trust will continue in operation. The Trustees are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the Trust and which enable them to aSrtain 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 hen for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the Maintenan 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.
The Kennedy Memorial Trust Report of the Trustees for the year ended 30 April 2022 (Contlnuedj 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 infomialion, 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 tsken all steps that helshe is obliged to take as a Trustee in order to make themselves aware of any relevant audit infomialion and to establish that the auditor is aware of that information. By order of the Board of Trustees Professor Sir Mark Walport Chairman Dated.. Aug 1, 2022
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 Ilhe 'charily'l for the year ended 30 April 2022 which comprise the statement of financial activities, the balance sheet and the notes lo 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 Stsndard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practice}. In our opinion, the financial statements.. give a true and fair view of the state of the charity's affairs as at 30 April 2022 and of its income and expenditure for the year then ended., • have been propedy prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and • have been prepared in awordance with the requirements of the Charities Act 2011 Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUK} IISAS IUKII and applicable law. Our responsibilities under those stsndards are further described in the auditorfs 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 lo our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordan 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 lo events or conditions that, individually or collectively. may cast significant doubt on the charity s ability lo 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 lo going concern are described in the relevant sections of this report. other information The Trustees are responsible for the other information. The other information comprises the information included in the Report of the Trustees, other than the financial statements and our auditor's report Ihereon. Our opinion on the financial statements does not cover the other information and, exp1 lo the extent otheiSe explicitly staled in our report, we do not express any fomi 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 klloedge obtained in the audit or otherwise appears lo be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required lo 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. We have nothing lo report in this regard. 10
The Kennedy Memorial Trust Independent Auditor's Report to the Trustees of Kennedy Memorlal Trust (Contlnued) Opinion on other matters prescribed by the Charities Act 2011 We have nothing lo report in respect of the followng matters in relation to which the Charities Act 2011 requires us lo report to you if, in our opinion.. • the information given in the Report of the Tnjstees is inconsistent in any material respect with the financial statements., or sufficient accounting records have not been kept., or • the financial statements are not in agreement with the accounting records and returns,. or we have not received all the infomalion and explanations we require for our audit. 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 detemiine is ne$Sary to enable the preparation of financial statements that are free from material misstatement, whether due lo fraud or error. In preparing the financial statements, the Trustees are responsible for 8ssessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend lo liquidate the charity or to ase operations, or have no realistic altemalive bul to ijo so. Audito$ responsibilities for the audit of the financial statements Our objectives are lo obtain reasonable assuran about whether the financial statements as a whole are free from material misslalement, whether due to fraud or error, and lo issue an auditor's report that includes our opinion. Re8sonable assurance is a high level of assuran, bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always delecl a material misslatemenl when il exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-complian with laws and regulations. We design procedures in line with our responsibilities, outlined above, to delecl material misstatements in respect of irregularities, including fraud. The extent lo which our prOdureS are capable of detecting irregularities, including fraud is detailed below. Our approach lo identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows.. the engagement partner ensured that the engagement team collectively had the appropriate competen, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations., we obtained an understanding of the legal and regulatory frameworks that are applicable to the charity and detemiined that the most significant frameworks which are directly relevant lo specific assertions in the financial statements are those that relate lo the reporting framework (Statement of Recommended Practi.. Accounting and Reporting by Charities preparing their accounts in accordan with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021 and the Charities Act 20111. identified laws and regulations were communicated within the audit team regularfy and the team remained alert to instances of non-compliance throughout the audit.
The Kennedy Memorial Trust Independent Auditor's Report to the Trustees of Kennedy Memorlal Trust (Contlnued) We assessed the susceptibility of the charity s financial statements to material misstatement, including obtaining an Ljnderstanding of how fraud might occur, by.. making enquiries of management as lo their knowledge of actual, suspected and alleged fraud., and considering the intemal controls in place lo mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we.. perfomied analytical prOdureS to identify any unusual or unexpected relationships., tested journal entries to identify unusual transactions., assessed whether judgements and assumptions made in detemiining the accounting eslimales were indicative of potential bias., tested aulhorisalion controls on expenditure items, ensuring all expenditure was approved in line with the charity's financial procedures., and performed substantive testing on management expense claims and credit card expenditure. In response to the risk of irregularities and non-complian with laws and regulations. we designed procedures which included, bul were not limited lo.. agreeing financial statement disclosures lo undedying supporting documentats'on., reading the minutes of meetings of those charged with governance., enquiring of management as to actual and potential litigation and claims- and reviewing any available correspondence with HMRC and the Charity's legal advisors. There are inherent limitslions 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 lo identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal Correspondence, rf any. Material misstatements that arise due to frauij can be harder to delect 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 slalements is located on the Financial Reporting Council's website at.. Mvw.frc.or .uklaudilorsres onsibililies. This description fom)s part of our auditor's report. 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 underiaken so that we might slate to the charity's members those mallers that we are required to stale lo 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 lo 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 lo act as an auditor in terms of section 1212 of the Companies Act 2006 Dated.. 30 August 2022 12
The Kennedy Memorial Trust statement of Financial Activities for the year ended 30 April 2022 Total Total Unrestricted Unrestricted 2022 2021 Note Income and endowments from: Donations and legacies Investment Income 196.310 85.451 98,074 181,138 Total Income 281.761 279,212 Expenditure: Charitable aclivities.- Runnymede Memorial expenses Graduate scholarships and expenses Scholarship application costs 6,662 960,072 24,938 6,071 256,974 51,256 Total expenditure 991,672 314,301 Nel expenditure before gains on investments 1709.911) 135,0891 Nel gains on investments 890.179 2,731,528 Net income and net movement in funds for the year 180.268 2,696,439 Reconciliation of funds: Totsl funds brought fotward 17.114.736 14,418,297 Total funds carried forward 17,295.004 17,114,736 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 15 to 24 form part of these financial statements. 13
The Kennedy Memorial Trust Balance sheet at 30 April 2022 Note 2022 2022 2021 2021 Fixed assets Tangible fixed assets Investments 72.012 16.865.088 71,178 16,852,908 Total Fixed Assets 16.937.100 16,924,086 Current assets Sundry debtors and prepayments Cash and bank balances 55,128 328,554 10,721 661,015 Total Current Assets 383,682 671,736 Liabilities Creditors.. amounts falling due within one year 10 {25,778) 1481,0861 Net current assets 357,904 190,650 Net assets 17.295,004 17.114,736 Financed by: Funds of the charity Unrestricted income funds: 13 17.295,004 17.114,736 Approved on behalf of the Trustees on 1 August 2022 Professor Sir Mark Walport - Trustee MS Tilly Franklin - Trustee The notes on pages 15 to 24 form part of these financial statements 14
The Kennedy Memorial Trust Notes forming part of the financial statements for the year ended 30 April 2022 status The Trust was established by the trust deed dated 4 July 1964 and amended 11 July 2007. Accounting policies The principal accounting policies adopted, judgements and key SoUS of estimation uncertainly in the preparation of the financial statements are laid out below.. Basis of accounting These financial slalemenls have been prepared for the year to 30 April 2022. The financial statements have been prepared under the historical cost convention wlh items initially recognised at cost or transaction value unless otherwise stated in the relevant accounting policy note. The financial statements have been prepared in accordan 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 IFRS 1021 Icharilies FRS 102 SORPI, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102). Companies Act 2006 and the Charities Act 2011. The charity constitutes a public benefit entity as defined by FRS 102. The financial statements are presented in sterling and are rounded to the nearest pound. Critical accounting estimates and areas of judgement There am 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 uncertainly are the carrying value of investment assets held by the charity, which will depend on the performan of investment markets and the investment income from these assets. The full economic impact of the global coronavirus pandemic and current conflict in Ukraine is still unknown. 11 is therefore not currently possible lo evaluate all the potential implications for the charity's aclivilies, beneficiaries, funders, suppliers and the wider economy. Estimates used in the financial slatemenls, particularly with respect lo the value listed investments Isee the investment policy on page 71 are subject lo a greater degree of uncertainty and volalilily. Going concem The Trustees have assessed whether the use of the going concem 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 stalemenls. 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 concem. The Trustees are of that opinion because the valLJe of assets held by the charity are very materially in excess of the liabilities of the charity and the level of commitments in respect of grants approved for projects payable in future years. 15
The Kennedy Memorial Trust Notes forming part of the financial statements for the year ended 30 April 2022 Accounting policies (Continued) 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 reived. Income is deferred only when the charity has to fulfil performance related conditions before becoming entitled to il or where the donor or funder has specified that the income is lo 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 nottficalion 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 conslruclive obligation lo make a payment to a third party, il is probable that a transfer of economic benefits will be required in selllemenl 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.. a. Expenditure on raising funds includes all expenditure associated with raising funds through the Charity. b. Expenditure on charitable activities includes all costs associated with furthering the charitable purposes of the charity through the provision of ils charitable aclivilies. Such costs are divided between the upkeep of the Runnymede Memorial, the graduate scholarships and scholarship application costs. Support costs, which include govemance costs, have been allocated lo graduate scholarships and scholarship application costs. All expenditure is inclusive of irrecoverable VAT. Cost apportionment Within expenditure on Charitsble activities, costs are allocated directly eilherto poslgraduale scholarships and scholarship application costs where possible= Post-graduate scholarship costs are the university fees and associated costs to support the student throughout their studies. 16
The Kennedy Memorial Trust Notes forming part of the financial statements for the year ended 30 April 2022 (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 lo either of these activities are apportioned on the basis of the lime spent by the Director, which is estimated al 670/0 on current postgraduate scholarships and 33Q/o on scholarship applications. Tanglble flxed assets Tangible fixed assets are slated at cost less depreciation. All assets costing more than £500 and with an expected useful life exceeding one year are capitalised. Depreciation is provided al rates calculated to write off the cost less estimated residual value of each asset over its expected useful economic life as follows.. offi equipment 20'/0- 30,/0 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 ils 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 is shown at'cost, as il is not considered lo have been impaired. sin the charity is responsible for keeping the memorial in an unspoill condition, the costs of doing so are wrillen off as and when incurred. Investments Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequenlly measured at their fair value as al the balance sheet dale using the closing quoted market price. The charity does not acquire pul options, derivatives or other complex financial inslrumenls. Realised gains lor losses) on investment assets are calculated as the difference between disposal prOedS and their opening carrying value or their purchase value if acquired subsequent lo the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value al the year end and their carrying value at that date. Realised and unrealised investment gains lor losses) are combined in the statement of financial activities and are credited lor 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 lo wider economic conditions, the attitude of investors lo investment risk, and changes in investor sentiment concerning equities, bonds and property investments. Debtors Debtors are recognised at the settlement amount, less any provision for non-recoverabilily. Prepayments are valued al 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 malurily of less than three months from the dale of acquisition. Deposits for more than three months but less than one year have been disclosed as short-lerm deposits. Cash plad on deposit for more than one year is disclosed as a fixed asset investment. 17
The Kennedy Memorial Trust Notes forming part of the financial statements for the year ended 30 April 2022 (Continued) Accounting policies (Continued) Creditors and pmvisions Creditors and provisions are recognised when there is an obligation at the balan sheet date as a result of a past event, il is probable that a transfer of economic benefit will be required in selllemenl, and the amount of the settlement can be eslimaled reliably. Creditors and provisions are recognised al the amount the charity anlicipales it will pay lo sellle the debt. They have been discounted lo 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 a available for use at the discretion of the Trustees in furtherance of the general objectives of the Trust. Foreign currency Foreign currency transactions are translated into steding at the rates ruling when they occurred. Foreign currency monetary assets and liabilities are translated at the rates ruling al the balance sheet dates. Any differences are taken to the Statement of Financial Aclivilies. Taxation The Kennedy Memorial Trust is a registered charity and therefore is not liable to income tax or corporation tax on income derived from ils charitable activities, as il 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 slraight-line basis over the term of the lease. Pension contributions Contributions to the personal pension schemes of the charity's employee are charged lo 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. Investment income 2022 2021 Dividends - UK listed investments Dividends - US listed investments Interest on cash deposits 85.418 82,392 98,656 90 33 85.451 181,138 18
The Kennedy Memorial Trust Notes forming part of the financial statements for the year ended 30 April 2022 (Continued) Runnymede Memorial Expenses 2022 2021 Annual maintenan 6.662 6,071 6.662 6,071 Analysis of charitable expenditure Post Graduate Scholarships Scholarshlp Appllcatlon Costs Total 2022 Total 2021 University and stipend fees Student travel and expenses SLJmmer research scholarships Programme support costs 871,449 42,184 871.449 42.660 143,232 1,840 10,770 1,358 476 928 2,046 2,974 914.561 917 083 157,200 Staff costs Premises costs Administration costs Exchange Igainsl I losses Contributions Frank Knox & Fulbright Scholars 38,049 6,558 2,182 113,257) 18,740 3,230 1,076 {6,5311 56.789 9.788 3,258 119,788) 69,038 10,598 3,307 50,866 29,377 14,470 43.487 21,866 111,943 21,866 133,890 Cost met by specific conditions 29,377 4,155 14,470 43.487 6.200 Governance Costs Accountancy Audit fee Legal and professional 5,745 4,187 2,047 11,979 2,830 2,063 1,008 8,575 6,250 3,055 7,377 6,600 17,221 Total costs for year 960.072 24,938 985,010 308,230 19
The Kennedy Memorial Trust Notes forming part of the financial statements for the year ended 30 April 2022 (Continued) Analysis of charitable expenditure- Comparative 2021 Post Graduate Scholarshlps Scholarship Appllcatlon Costs Total 2021 University and stipend fees Student travel and expenses Summer research scholarships Programme support costs 143,232 1,782 10,770 143,232 1,840 10,770 1,358 58 1,358 155,784 1.416 157,200 Staff costs Premises costs Administration costs Exchange losses Contributions Frank Knox 46,256 7,101 2,215 34,080 14,650 75,002 14,650 89,652 22,782 3,497 1,092 16,786 7,216 36,941 7,216 44,157 69,038 10,598 3,307 50,866 21,866 11,943 21,866 133,890 Cost met by specific conditions Governance Costs Accountancy Audit fee Legal and professional 4,943 4,422 2,173 11,538 2,434 2,178 1,071 5,683 7,377 6,600 3,244 17,221 Total costs for year 256,974 308,230 During the year 16 scholarships were awarded, 13 with full liability for tuition and health insurance fees (including two partial scholarship renewals), two with partial liability due lo shared costs with the UK Fulbright Commission, and one doctoral candidate for whom there was no liability for fees. These awards amounted lo £707,680 or $968,62712021.. 3 awards were made, all with full liability for luilion and health fees, including one partial scholarship renewal, amounting lo £111,499 or $150,428). Following means-testing, full stipends of £20,176 or $27,250 for living expenses were awarded lo 7 Scholars, with reduced stipend amounts for others. 20
The Kennedy Memorial Trust Notes forming part of the financial statements for the year ended 30 April 2022 (Continued) 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.. 2022 Number 2021 Number Administration No employee eamed between £60,000 - £70,00012021.. One employee earned more than £60,000)- The Trust made pension contributions on behalf of the employees of £4,98012021.. £6,031). A consultant was employed during the Director's matemity leave to administer aspects of the current Kennedy Scholarship and Knox Fellowship competitions. No Trustee received any remuneration in either year. No Trustee had expenses reimbursed.12021= No Trustees were reimbursed expenses) 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 lo key management personnel for the year was £56,78912021: £69,038). Fixed assets Runnymede Memorial Office equipment Total Cost At 1 May 2021 Additions 71,178 71,178 1,042 1,042 30 April 2022 71,178 1,042 72,220 DepCiall0n At 1 May 2021 Charge for the year 208 208 At 30 April 2022 208 208 Net book value At 30 April 2022 71,178 834 72,012 At 30 April 2021 71,178 71,178 21
The Kennedy Memorial Trust Notes forming part of the financial statements for the year ended 30 April 2022 (Continued) Investments 2022 2021 Market value at 1 May Additions Disposals Realised gains Nel unrealised investment gains Cash deposit movement 16.852.908 13,692,832 8,856,987 1448.810) 18,858,893) 28.226 2,001,525 861.953 730,003 1429.189) 430,454 Market value at 30 April 16,865,088 16,852,908 The valuation at 30 April comprises.. Investments listed on a recognised Stock Exchange including unit trusts 2022 2021 UK listed investments- managed funds Overseas- managed funds Cash deposits 2,535,666 14,326,433 2,989 2.327,054 14.093,676 432,178 16.865.088 16,852,908 The following investments comprise more than 50A of the value of the total portfolio.. 2022 2021 2022 2021 BR Charities UK Equity Index Fund BR ISHR DEV WD ESG IDX BR BGF EMG MKTS EQTY BR ISHR GBL INFL LKD IDX BR UK Propety ISHS CORE MSCI WORLD 1,743,662 7,770,514 1,446,992 4,320,066 792,004 788,861 1,659,687 7,615,130 1,634,637 3,896,088 667,367 947,821 10 46 10 46 10 24 26 22
The Kennedy Memorial Trust Notes forming part of the financial statements for the year ended 30 April 2022 (Continued) Sundry debtors and prepayments.. amount falling due within one year 2022 2021 Other debtors Tax and social security Prepayments and accrued income 44,986 6.932 3.210 5,900 4,821 55.128 10,721 10 Creditors: amounts falling due within one year 2022 2021 Other creditors Tax and social security Accruals and deferred income 1,237 429,880 1,476 49,730 24,541 25,778 481,086 11 Pensions The Trust pays contributions lo employees, individual pension policies. The policies provide for benefits on a defined contribution basis and the assets undedying each policy are held by the pension provider. The pension cost charge represents the contributions payable by the Trust and amounted to £4,98012021'. £6,031 }. 12 Financial commitments At 30 April 2022 the Trust had commitments under non-cancellable operating leases as follow. Land and Buildings 2022 2021 Operating lease payments due.. within one year later than one year and not later than five years 2.632 7,864 2,632 Total 2,632 10,496 13 Unrestrleted funds Balance 1May 2021 Reallsed and Unrealised Investment Gains Balance 30 April 2022 Income Expendlture Unrestricted funds 17,114,736 281,761 1991,672) 890,179 17,295.004 23
The Kennedy Memorial Trust Notes forming part of the financial statements for the year ended 30 April 2022 (Continued) 14 Related Party Transactlons During the year, the Tuixen Foundation. of which Dr Peter Englander is a Iruslee, donated £25,000 to the charity {2021'. £25,000). During the year, the charity reiVed donations from Trustees amounting to £15,57812021'. £2,200). There were no amounts outstanding at the year-end12021.' £nill. 24