2020-12-31-accounts

THE PHILIP RECKITT EDUCATIONAL TRUST FUND

FINANCIAL STATEMENTS

FOR THE YEAR FROM 1 JANUARY 2020 TO 31 DECEMBER 2020

Prepared by

THE PHILIP RECKITT EDUCATIONAL TRUST FUND

CONTENTS

	Page
Trustees' Annual Report	1 - 5
Independent Examiner's Report	6
Statement of Financial Activities	7
Balance Sheet	8
Notes to the Accounts	9 - 17

THE PHILIP RECKITT EDUCATIONAL TRUST FUND

CHARITY NUMBER: 529777

FOR THE YEAR FROM 1 JANUARY 2020 TO 31 DECEMBER 2020

TRUSTEES' ANNUAL REPORT

Introduction

The trustees present their report and the accounts of the charity for the year ended 31 December 2020. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" in preparing their report and the annual financial statements of the charity.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity's governing document, the Charities Act 2011 and 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 UK and Republic of Ireland published in October 2019.

Objectives and activities

Objects

The original trust objects set by the Trust Deed in 1944, were subsequently amended by a Deed of Variation in 1949 and an Order of the High Court of Justice (Chancery Division) in 1970, and now read as follows:

"After the payment out of income of all proper costs and expenses of or incidental to the management of the trust, the trustees shall hold the trust fund and the income thereof in trust as to both capital and income for the education or assisting in the education of any persons for the time being resident in the geographical area of the East Riding of the county of York (including the City and County of Kingston Upon Hull) or in the geographical County of Norfolk (including the City and County of Norwich) in the languages, business methods social services and customs of any country or countries in any part of the world or in any other subject or subjects of study. Without prejudice to the generality of the above, the trustees are in particular empowered to extend or supply the income of the trust fund and, if they think fit, any portion or portions of the whole of the capital thereof in arranging and providing facilities for and paying or contributing towards the cost of travel, residence and attendances at conferences, lectures and educational courses (whether such conferences, lectures and educational courses take place abroad or in the United Kingdom) for such persons as aforesaid or in any of such ways or in any other manner whatsoever conducive towards the educational objects aforesaid."

Activities

The primary activity of the charity is the provision of monetary grants to individuals and groups of individuals, towards the costs of travel, residence and attendances at conferences, lectures and educational courses. The charity does not make use of volunteer labour, nor involve itself in the provision of such conferences, lectures and courses. The charity derives the whole of its funding from the income and gains generated from the investment of its trust fund.

During the year net grant commitments amounted in total to £10,510 to 76 individuals, awarded as contributions to their travel costs for attending educational courses, conferences and lectures in the UK and abroad. The number and total value of grant awards were significantly reduced in 2020 due to the travel restrictions and lock-down measures imposed by many governments around the world to combat the spread of disease from the Covid-19 pandemic. The trustees expect the same to apply in 2021.

Public benefit

The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's activities and objectives and in establishing the charity's grant making policy. The trustees are satisfied that the charity's purposes are for the public benefit and the charity's grant making policy is aimed towards fulfilling the public benefit requirements.

Grantmaking policy

The trustees ensure that any criteria applied by them to determine the eligibility of grant recipients and to ensure compliance with the charity's objects and the public benefit, are reasonable, justifiable and proportionate.

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THE PHILIP RECKITT EDUCATIONAL TRUST FUND

CHARITY NUMBER: 529777

TRUSTEES' ANNUAL REPORT FOR THE YEAR FROM 1 JANUARY 2020 TO 31 DECEMBER 2020

With all grant applications received from individuals, it is part of the charity's grant making procedure to ensure that the purposes to which the grants are utilised are:

• charitable at law, and

• fulfil the public benefit requirements, and

• any benefit received by individuals are purely incidental to the charitable purpose of the grant.

Achievements and performance

Achievements

Education is a very large area of activity which caters to the needs of the whole population to varying degrees. This provides a large and continuous stream of potential grant applicants that would deplete the resources of the charity over time if it attempted to provide grants that covered the full amount of the applicants travel and attendance costs.

The trustees want the charity to continue to grow and provide funding support to applicants well into the future. Therefore the charity concentrates its efforts towards providing a steady source of reasonably sized grant contributions to as wide a number of applicants as possible.

The trustees currently budget each year's grant expenditure at their annual general meetings based on their estimate of the charity's projected net income plus a contribution from retained funds. However, the final amounts actually spent will fluctuate from year to year, depending on the level of grant applications received.

Analysis of the charity's grant commitments can be seen in note 6 of these financial statements.

Investment performance

The performance of SPRET's portfolio, its benchmark index and the FTSE 100 over the 1 and 3 year periods to 31 December 2020 were as follows:-

		1 Year		3 Years*
Total return performance
Charity's portfolio		-2.6%		2.8%
Benchmark Index		-5.9%		0.6%
FTSE 100		-11.6%		-1.8%

• Average annual return over the 3 year period.

The investment manager's review of the major influences on the performance of the portfolio over the year to 31 December 2020 included the following:-

• The global economy suffered an unprecedented shock in early 2020 due to the Covid-19 pandemic. Governments around the world took drastic measures to try to contain the spread of the virus, telling people to stay at home, closing public areas and banning non-essential travel.

• Many countries reported record-breaking contractions in quarterly GDP and the UK economy shrank by nearly 10% in 2020, which the Bank of England reported was its largest annual fall in 300 years. China's economy shrank for the first time in 44 years in the 1st quarter of 2020. The US unemployment rate soared to 14.7% in April 2020, the highest level since World War II.

• Governments and central banks introduced unprecedented fiscal stimulus packages, job retention schemes and monetary easing to help shore up their economies.

• World stockmarkets suffered major declines, with the S&P 500 index experiencing its fastest fall of more than 20% since its inception in 1957. Sectors that were hardest hit included airlines, high street shops (excluding food retailers), restaurants and cinemas. Some other sectors benefited from the conditions, such as home entertainment streaming services, video conferencing services and detergent and sanitiser retailers.

• The UK stockmarket also suffered from continuing uncertainty about Brexit throughout 2020.

• Many companies suspended dividend payments to reduce the strain on their cash resources caused by the lock-downs and restrictions imposed by Governments. Dividend income is expected to remain at a reduced level in 2021.

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THE PHILIP RECKITT EDUCATIONAL TRUST FUND

CHARITY NUMBER: 529777

FOR THE YEAR FROM 1 JANUARY 2020 TO 31 DECEMBER 2020

TRUSTEES' ANNUAL REPORT

• Government bonds rallied as investors sought sanctuary from tumbling stockmarkets with yields on benchmark US and UK bonds falling to their lowest ever levels.

• After the shocks of the 1st quarter, world stockmarkets rallied strongly during the rest of the year led by large technology companies. The S&P 500 and the Nasdaq both reached new all time highs. Amazon soared as the pandemic accelerated the ongoing shift to online shopping and cloud computing.

• Positive news on the successful development of vaccines by the end of the year added futher stimulus to the recovery of stockmarkets.

• Not only did the charity's portfolio achieve a better return than the benchmark and the FTSE 100 over the year to 31 December 2020 (as shown above), but it managed this with a lower level of volatility.

• The portfolio has benefited from its direct and indirect international exposure via investments in holdings such as Alphabet, Polar Capital Technology Trust and Bankers Investment Trust.

• The portfolio has also benefited from its bias towards "quality companies" which are less sensitive economic disruptions due to their stronger balance sheets and dominant market positions.

Having considered the investment manager's review the trustees believe that the performance of the portfolio over the past year has been satisfactory.

Financial review

Financial summary

Below is a summary of the charity's financial results for the year and its financial position at the year end based on the Statement of Financial Activities and Balance Sheet:-

• Total income for the year reduced by 16% to £32,456 (2019: £38,513);

• Total expenditure for the year reduced by 43% to £25,258 (2019: £44,077);

• Total expenditure for the year represented 78% of total income (2019: 114% of total income);

• After adding in net losses of £59,988 from investments (2019: net gains of £145,711) the resulting net expenditure for the year amounted to £52,790 (2019: net income of £140,147);

• The market value of the investment portfolio at the year end amounted to £1,037,926 (2019: £1,098,011) which represents a decrease of 5% on the previous year end;

• The total net assets of the charity at the year end amounted to £1,078,134 (2019: £1,130,924) which represents a decrease of 5% on the previous year end.

Reserves policy

The trustees do not consider that the charity requires a formal reserve fund as a contingency against unexpected revenue declines in future periods because:-

• the risk of material longer term revenue declines from a diversified actively managed securities portfolio is considered to be small;

• the trustees agree new grant budgets each year after reviewing past income performance and their expectations for the year ahead, and

• the one-off nature of the grants paid each year mean the trustees are able to tailor their grant approvals to the grant budgets they have agreed.

Going Concern

There are no material uncertainties about the charity's ability to continue as a going concern.

Investment policy

The trustees have agreed the following investment terms, objectives and policies with the investment manager:-

• The portfolio is managed under a full discretionary service;

• The portfolio is managed on a medium/high risk basis with the aim of protecting and enhancing the value of the portfolio by generating returns in excess of inflation, whilst also aiming for a balanced return between income and capital growth;

• The bulk of the portfolio will be invested in equities with investment in overseas and specialist areas being directed through investment trusts and unit trusts;

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THE PHILIP RECKITT EDUCATIONAL TRUST FUND

CHARITY NUMBER: 529777

FOR THE YEAR FROM 1 JANUARY 2020 TO 31 DECEMBER 2020

TRUSTEES' ANNUAL REPORT

• Direct equity investments will be directed towards key longer term growth areas.

• The portfolio may be further diversified by scaling back the size of the larger holdings. The investment strategy is reviewed with the investment manager on a regular basis.

Risk management systems and procedures

The trustees have reviewed the major areas of risk to which the charity is exposed and established procedures and systems to manage those risks.

Structure, governance and management

Type of governing document

The charity was originally created by a Trust Deed dated 22 November 1944, with subsequent amendments by a Deed of Variation dated 21 July 1949 and an Order of the High Court of Justice (Chancery Division) dated 20 April 1970.

How the charity is constituted

The charity is constituted as a Trust

The trustees are incorporated as a body corporate named The Incorporated Trustees of the Sir Philip Reckitt Educational Trust.

Trustee selection methods

The Vice Chancellors of the Universities of Hull and East Anglia have the power to appoint one trustee each. The power for all other trustee appointments is vested in the current trustees.

The existing trustees and the vice chancellors select new trustees from people known to them that they consider to have suitable knowledge and expertise. The trustees are appointed for indefinite terms, usually upon the retirement of existing trustees.

Policies and procedures for the induction and training of trustees

New trustees are provided with a copy of the Charity Commission publication CC3 "The essential trustee: what you need to know, what you need to do" which provides guidance on what is involved in being a charity trustee.

Organisational structure

The charity has no employees of its own. J Pickering (a self employed contractor) and Rollits LLP (a firm of solicitors) provide secretarial support for the Norfolk and East Riding of Yorkshire regions respectively. Their secretarial duties include performing initial checks on grant applications received before forwarding them to the trustees for decision.

In addition to the above Rollits also provides administration, investment support, legal and accounting services to the charity, including the preparation of these accounts.

None of the trustees receive any remuneration for acting as trustees of the charity.

Related party relationships

John Lane is a member of Rollits LLP. Rollits fees for the services it provides to the charity are separately identified in the notes to the accounts.

Reference and administrative details

Charity name: The Philip Reckitt Educational Trust Fund Other names the charity uses: Sir Philip Reckitt Educational Trust SPRET

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THE PHILIP RECKITT EDUCATIONAL TRUST FUND

CHARITY NUMBER: 529777

TRUSTEES' ANNUAL REPORT

FOR THE YEAR FROM 1 JANUARY 2020 TO 31 DECEMBER 2020

Registered charity number: 529777 Charity's principal address: Citadel House 58 High Street Hull HU1 1QE

Names of the charity trustees who manage the charity

Trustee Name Office (if any) Dates acted if not for whole year Philip Holt Chair Vincent Lachowycz John Ayre Martin Needler John Lane Glynis Witham Robert Walpole

As detailed under trustee selection methods above, Robert Walpole and Martin Needler are the trustees appointed by the Vice Chancellors of the Universities of East Anglia and Hull respectively. At the July 2020 annual general meeting John Ayre gave notice of his intention to retire as a trustee at the annual general meeting in June 2021.

Names and addresses of advisers

The charity's principal advisors are: Investment manager Rathbone Investment George House 50 George Square Glasgow G2 1EH Management Ltd Bankers HSBC 3-4 Jameson Street Hull HU1 3JX Lloyds Bank Surrey Street Norwich Norfolk NR1 3NF Independent examiner Patrick Scargill Sowerby Chartered Accountants Beckside Court Annie Reed Road Beverley HU17 0LF Solicitor Rollits LLP Citadel House 58 High Street Hull HU1 1QE

Future Developments

The trustees are satisfied that the charity's current activity of providing monetary grants to assist individuals to attend conferences, lectures and courses in furtherance of their education is both a suitable and cost effective method of achieving its objectives. The charity expects to continue with its current method of operation for the foreseeable future. However the trustees will keep under review alternative methods for applicants to apply for grants and their subsequent processing to ensure that the procedure is user friendly, efficient and cost effective.

Declaration

The trustees declare that they have approved the trustees' report above.

Signed on behalf of the charity's trustees by: John Lane Trustee 2 June 2021

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THE PHILIP RECKITT EDUCATIONAL TRUST FUND

INDEPENDENT EXAMINER'S REPORT

ON THE ACCOUNTS FOR THE YEAR FROM 1 JANUARY 2020 TO 31 DECEMBER 2020

Report to the trustees of The Philip Reckitt Educational Trust Fund (charity number: 529777) on my examination of the accounts of the charity for the year from 1 January 2020 to 31 December 2020 set out on pages 7 to 17.

Responsibilities and basis of report

As the charity's trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ("the Act").

I report in respect of my examination of the charity's accounts carried out under section 145 of the Act and in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which give me cause to believe that in any material respect:

• the accounting records were not kept in accordance with section 130 of the Act; or

• the accounts did not accord with those records; or

• the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts & Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair view' which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Patrick Scargill FCCA

Chartered Certified Accountant

Sowerby Chartered Accountants, Beckside Court, Annie Reed Road, Beverley, HU17 0LF 11 June 2021

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THE PHILIP RECKITT EDUCATIONAL TRUST FUND

CHARITY NUMBER: 529777

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR FROM 1 JANUARY 2020 TO 31 DECEMBER 2020

			Unrestricted funds	Unrestricted funds	Unrestricted funds	Unrestricted funds
	Note			2020		2019
				£		£
Income
Investments	3		32,456		38,513
Total			32,456		38,513
Expenditure
Raising funds	4			4,020		2,890
Charitable activities	5		21,238		41,187
Total			25,258		44,077
Net income/(expenditure) before investment gains/(losses)				7,198	(5,564)
Net gains/(losses) on investments	10		(59,988)		145,711
Net income/(expenditure)			(52,790)		140,147
Net movement in funds			(52,790)		140,147
Reconciliation of funds:
Total funds brought forward		1,130,924			990,777
Total funds carried forward		1,078,134			1,130,924

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THE PHILIP RECKITT EDUCATIONAL TRUST FUND

BALANCE SHEET

AS AT 31 DECEMBER 2020

					Unrestricted funds	Unrestricted funds	Unrestricted funds	Unrestricted funds	Unrestricted funds	Unrestricted funds
		Note				2020				2019
						£				£
Fixed assets
Investments		11		1,037,926					1,098,011
Total fixed assets				1,037,926					1,098,011
Current assets
Debtors		14				440				787
Cash at bank and in hand		15			46,430				37,345
Total current assets					46,870				38,132
Creditors: amounts falling due within one year		16				6,662				5,219
Net current assets					40,208				32,913
Total assets less current liabilities				1,078,134					1,130,924
Total net assets				1,078,134					1,130,924
Funds of the charity
Unrestricted funds					844,130				843,213
Revaluation reserve					234,004				287,711
Total funds				1,078,134					1,130,924
Signed by one trustee on behalf of all the trustees:	John Lane
	2 June 2021

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THE PHILIP RECKITT EDUCATIONAL TRUST FUND

NOTES TO THE ACCOUNTS FOR THE YEAR FROM 1 JANUARY 2020 TO 31 DECEMBER 2020

1. General information and basis of preparation

2. These financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £1.

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

The significant accounting policies applied in the preparation of the accounts are set out in note 2 below. These policies have been consistently applied to all years presented unless otherwise stated. No changes have been made to accounting estimates and no material prior year errors have been identified in the reporting period.

1.1 Basis of accounting

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.

The accounts have been prepared in accordance with:

• the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019

• and with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102)

• and with the Charities Act 2011.

• and with UK Generally Accepted Accounting Practice.

The accounts have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view'. This departure has involved following the 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 UK and Republic of Ireland (FRS 102) issued in October 2019.

1.2 Going concern

The average annual results of the charity over the past 5 years are as follows:-

		£
-	Average annual income	37,083
-	Average annual grant and grant support expenditure	(30,686)
-	Average annual fundraising and governance expenditure	(11,039)
-	Average net expenditure before investment gains and losses	(4,642)
-	Average annual investment gains	37,533
-	Average annual net surplus per annum	32,891

These figures when taken in conjunction with the net assets of the charity and the trustees' procedure of reviewing investment performance annually and then setting annual grant budgets gives the trustees confidence that the charity will continue as a going concern for the foreseeable future.

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THE PHILIP RECKITT EDUCATIONAL TRUST FUND

NOTES TO THE ACCOUNTS

FOR THE YEAR FROM 1 JANUARY 2020 TO 31 DECEMBER 2020

2. Accounting policies

2.1 Income

Recognition of income

These are included in the Statement of Financial Activities (SoFA) when:

• the charity becomes entitled to the income;

• it is more likely than not that the charity will receive the income; and

• the monetary value can be measured with sufficient reliability.

Offsetting

There has been no offsetting of assets and liabilities, or income and expenses, unless required or permitted by the FRS 102 SORP or FRS 102.

Income from interest and dividends

These are included in the accounts when receipt is probable and the amount receivable can be measured reliably. Income received with recoverable tax credits attached are reported gross in the SoFA and any unrecovered tax at the year end is included in debtors. The accrued interest included in the sale and purchase of treasury stocks and corporate bonds is included in investment income in the SoFA on the date of the sale or purchase.

Investment gains and losses

This includes any realised or unrealised gains or losses on the sale of investments and any gain or loss resulting from revaluing investments to market value at the end of the year.

2.2 Expenditure & liabilities

Liability recognition

Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out resources and the amount of the obligation can be measured with reasonable certainty.

Allocation of supoprt costs to different areas of expenditure

Where possible all costs are allocated to the particular area of expenditure to which they relate. If any costs relate to several areas of expenditure then they are split and allocated to the relevant areas of expenditure on an appropriate basis.

Governance and support costs

Governance costs, which comprise all costs involving public accountability of the charity and its compliance with regulation and good practice (including costs relating to the annual general meeting), are treated as an indirect charitable activity support cost in the accounts.

Grant commitments

The charity does not provide grants for services that are subject to performance conditions by the recipient. All grant commitments made by the charity are recognised in the SoFA when the commitment is made. If the recipient fails to attend the educational event for which the grant was awarded the grant award becomes void and repayable, unless the trustees agree that the recipient can use the grant for an alternative similar event. Grant refunds received back by the charity are offset against the grant expenditure shown in the SoFA.

Creditors

These liabilities are measured at settlement amounts less any trade discounts.

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THE PHILIP RECKITT EDUCATIONAL TRUST FUND

NOTES TO THE ACCOUNTS FOR THE YEAR FROM 1 JANUARY 2020 TO 31 DECEMBER 2020

2. Accounting policies

(Continued)

2.3 Assets

Investments

Fixed asset investments in quoted shares, traded bonds and similar investments are initially valued at cost and subsequently at fair value (their market value) at the year end. The valuation of treasury stocks and corporate bonds exclude the value of accrued interest. Fixed asset investments also include capital type cash balances held for investment or reinvestment by the investment manager.

Debtors

Debtors are measured on initial recognition at settlement amount after any trade discounts or amounts advanced by the charity. Subsequently, they are measured at the cash or other consideration expected to be received.

	avance y e cary. usequeny, ey are measure a e cas or oer con to be received.	s	era		n ex	p	ece
3.	Income from investments		2020				2019
			£				£
	Income from listed investments	32,456				38,505
	Interest from cash balances		-				7
	Other income		-				1
		32,456				38,513
4.	Expenditure on raising funds		2020				2019
			£				£
	Investment manager's fees		4,020				2,733
	Rollits investment support fees		-				157
			4,020				2,890

Over the first 8 months of the year the investment manager charged quarterly portfolio management fees (shown above) combined with dealing charges which are included in the accounts as part of the purchase cost of investments, or a reduction of the sale proceeds. In the final 4 months of the year the investment manager switched to a system of all inclusive quarterly portfolio management fees without any dealing charges.

Rollits' investment support fees relate to separately identifiable work undertaken to deal with compliance and regulatory matters relating to the management of the portfolio.

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THE PHILIP RECKITT EDUCATIONAL TRUST FUND

NOTES TO THE ACCOUNTS FOR THE YEAR FROM 1 JANUARY 2020 TO 31 DECEMBER 2020

5.	Expenditure on charitable activities		2020		2019
			£		£
	Hull and East Riding of Yorkshire grants		(700)		5,255
	Norwich and Norfolk grants	11,210		24,395
	Total grant commitments	10,510		29,650
	Grantmaking support costs		3,450		3,908
	Governance costs		7,278		7,629
		21,238		41,187

The lockdowns and travel restrictions imposed by many countries around the world due to the Covid-19 pandemic caused many educational events in 2020 to be postponed or cancelled.

The negative grant awards for the Hull branch in 2020 has arisen because in addition to all of its 2020 grant awards subsequently being repaid due to the events being cancelled, there were also several grants awarded in 2019 for events in 2020 that were also cancelled and repaid.

The Norwich branch fared better as many of the grants awarded in early 2020 either still went ahead or were postponed and rescheduled for a later date. For the postponed events, the trustees have agreed in many cases to allow grant recipients to retain the grant money paid to them where they have confirmed they will use it to attend the rescheduled event.

6.	Analysis of grant commitments			Grants to	Grants to			Grants to	Grants to				Total				Total
			institutions				individuals						2020				2019
					£				£				£				£
	Charitable purpose for which grants made
	Advancement of education				-				10,510			10,510				29,650
					-				10,510			10,510				29,650
	Total number of grants awarded				-				76				76				177

All grants were made to individuals and groups of individuals in both years. Grants paid generally represent contributions towards the costs of travel to attend educational conferences, lectures and courses, held in the UK or overseas.

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THE PHILIP RECKITT EDUCATIONAL TRUST FUND

NOTES TO THE ACCOUNTS

FOR THE YEAR FROM 1 JANUARY 2020 TO 31 DECEMBER 2020

7.	Grantmaking support costs	2020		2019
		£		£
	Rollits grantmaking support fees	1,248		1,841
	Norfolk administrator's fees	1,600		1,500
	Norfolk administrator's office costs	387		352
	Website costs	180		180
	Information Commissioner's Office annual registration fee	35		35
		3,450		3,908

Grantmaking support costs represent expenses that are directly attributable to the processing and review of grant applications, including:-

• reviewing and maintaining the grantmaking policy, application form and website of the charity.

• correspondence with trustees relating to the review and approval of grant applications.

• fielding queries from potential grant applicants as to whether or not they could submit a grant application.

• checking applications received to ensure they comply with the grantmaking policy.

• arranging payment of grant awards to successful applicants.

• chasing successful grant applicants for repayment of their grant awards where their event was subsequently cancelled.

• receiving reports from successful applicants after the completion of the events they attended and preparing an annual summary grants report for review by the trustees.

	recevng reports rom successu appcants ater te competon o te events preparing an annual summary grants report for review by the trustees.	ey at	ende	and
8.	Governance costs	2020		2019
		£		£
	Trustees expenses	-		867
	Independent examiner's fee	990		960
	Rollits accounting fees	3,720		3,600
	Rollits legal and agm fees	2,568		2,202
		7,278		7,629

Governance costs include all expenditures not directly attributable to the fundraising and grantmaking activities of the charity, such as:-

• providing advice on legal and regulatory matters.

• expenses relating to arranging and attending trustees' meetings.

• maintaining the accounting records of the charity, preparing income tax reclaims, preparing the annual accounts and having them independently examined.

• maintaining the charity's details on the Charity Commission website and completing the annual return.

Governance costs are treated as an indirect cost of the charitable activity of the charity.

9.	Fees for examination of the accounts	2020		2019
		£		£
	Independent examiner's fees for reporting on the accounts	990		960

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THE PHILIP RECKITT EDUCATIONAL TRUST FUND

NOTES TO THE ACCOUNTS FOR THE YEAR FROM 1 JANUARY 2020 TO 31 DECEMBER 2020

10.	Gains and losses on investments									2020				2019
										£				£
	Gains and (losses) realised during the year								(39,502)				10,546
	Gains and (losses) on revaluation at the year end								(20,486)				135,165
	Total investment gains and (losses) per the SoFA								(59,988)				145,711
11.	Fixed asset investments: movements summary	Cash & cash				Listed				2020				2019
			equivalents		investments					Total				Total
			£			£				£				£
	Market value at beginning of year		3,076			1,094,935			1,098,011				976,299
	Add: additions to investments during the year		-			261,846			261,846				54,715
	Less: investment disposals at carrying value		-			(307,082)			(307,082)				(61,765)
	Add/(deduct): movement due to changes in listed inv'ts		5,637			-			5,637				17,597
	Add/(deduct): transfers in/(out) in the year		-			-				-			(24,000)
	Add/(deduct): net gain/(loss) on revaluation		-			(20,486)			(20,486)				135,165
	Market value at end of year		8,713			1,029,213			1,037,926				1,098,011
	Historic cost analysis of investments held at the year	end:
	Listed investments								795,209				807,224
	Cash held for reinvestment								8,713				3,076
									803,922				810,300
12.	Fixed asset investments: valuation analysis								Fair	value			Fair	value
								at year end				at year end
										2020				2019
										£				£
	Cash or cash equivalents								8,713				3,076
	Listed investments								1,029,213				1,094,935
	Total								1,037,926				1,098,011

All investments held by the charity are revalued to their market value (fair value) at each year end. No investments are held at cost less impairment.

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THE PHILIP RECKITT EDUCATIONAL TRUST FUND

NOTES TO THE ACCOUNTS

FOR THE YEAR FROM 1 JANUARY 2020 TO 31 DECEMBER 2020

13.	Fixed asset investments: material	holdings								Market	Market	Market			Share of	Share of	Share of
											value						total
												£					%
	Holdings >5% of total listed investments at 31 December		2020
	Murray International Trust Plc									56,300						5.47%
	Bankers Investment Trust Plc									56,100						5.45%
	Securities Trust of Scotland Plc									54,516						5.30%
										166,916						16.22%
14.	Current assets: debtors										2020						2019
												£					£
	Amounts falling due within one year
	Other debtors:- Recoverable income tax											-					136
	HMRC tax reclaims										136						198
	Dividends due											64					156
	Rathbone income account										130						297
	Grant refund receivable											110					-
											440						787
15.	Current assets: cash at bank and in hand										2020						2019
												£					£
	HSBC community account									27,328						16,756
	Lloyds current account									19,102						20,589
										46,430						37,345
16.	Creditors and accruals			Amounts		falling due			Amounts				falling due
					within one year							after			one year
					2020		2019				2020						2019
					£		£					£					£
	Other creditors:- Independent examiner's fee				990		960					-					-
	Rollits' fees			3,336			3,600					-					-
	Investment manager's fees			2,336			659					-					-
		Total		6,662			5,219					-					-

17. Contingent liabilities and contingent assets

The charity did not have any contingent liabilities or any contingent assets at the reporting date.

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THE PHILIP RECKITT EDUCATIONAL TRUST FUND

NOTES TO THE ACCOUNTS FOR THE YEAR FROM 1 JANUARY 2020 TO 31 DECEMBER 2020

18. Fair value of assets and liabilities

Exposure to liquidity risk

The liquidity risk exposure of the charity not being able to meet short term financial demands is mitigated by Rollits preparing monthly bank reconciliations for the charity's main bank account and reviewing the value and timing of any pending liabilities.

Exposure to credit risk

The main debtors of the charity are recoverable income tax deducted at source from investment income and the investment income cash account balance held by the investment manager. The risk of loss arising from H M Revenue & Customs (HMRC) failing to repay the reclaimed income tax is considered minimal as HMRC is backed by the UK Government. The risk of loss arising from the investment manager failing to pay over the income generated by the investment portfolio is considered low as the investment manager is a regulated institution and the income is paid monthly to the charity's bank account.

Exposure to market risk

Investments represent the majority of the charity's net assets. The risk of a financial loss arising from an investment due to changes in the market are mitigated by the active management of the investment portfolio by a professional investment manager and the diversification of the investment portfolio based on an investment policy approved by the trustees.

Changes in fair values of debtors, creditors & investments due to credit risk

There have been no changes in the fair values of basic financial instruments (debtors, creditors and investments) attributable to changes in credit risk.

19. Trustee remuneration & benefits

None of the trustees have been paid any remuneration or received any other benefits from an employment with the charity or a related entity.

	one o te trustees ave been pad any remuneraton or receved any oter employment with the charity or a related entity.	one o te trustees ave been pad any remuneraton or receved any oter employment with the charity or a related entity.		bene		s ro	an
20.	Trustees' expenses			2020			2019
				£			£
	Type of expenses
	Travel			-			285
	Subsistence			-			267
	Accommodation			-			315
				-			867
	Number of trustees reimbursed or had expenses paid by the charity			-			4

Due to the stay at home lockdowns and travel and meeting restrictions imposed by the UK Government during 2020 in its efforts to reduce the spread of infection from the Covid-19 pandemic all trustee meetings in the year were held by video conference and hence no trustees' expenses were incurred.

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THE PHILIP RECKITT EDUCATIONAL TRUST FUND

NOTES TO THE ACCOUNTS FOR THE YEAR FROM 1 JANUARY 2020 TO 31 DECEMBER 2020

(Continued)

21.	Transactions with related parties	Transactions with related parties	Transactions with related parties	Transactions with related parties
							2020						2019
	Name of trustee	Relationship		Description of			Balance at							Balance at
	or related party	to charity		the transactions		Amount			year end			Amount			year end
							£			£			£			£
	Rollits LLP	See below		Rollits services		7,536				3,336		7,800				3,600
	Martin Needler	See below		Grant commitment			-			-		150				-
						7,536				3,336		7,950				3,600

John Lane is a member of Rollits LLP which provides grant support, investment support and governance (secretarial, administration, legal and accounting) services to the charity. The payment for these charges is authorised by the trust deed. Rollits' charges for these services are detailed in notes 4, 7 and 8.

Rollits usually invoices the charity twice annually, in July and January each year, for the services it has provided. The invoices are payable on delivery and the charity settles them by cash payments after they have been authorised in accordance with the procedure agreed by the trustees.

Details of the 2019 grant commitment to a related party of Martin Needler were given in the 2019 accounts.

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