2021-12-31-accounts

THE PHILIP RECKITT EDUCATIONAL TRUST FUND

FINANCIAL STATEMENTS

FOR THE YEAR FROM 1 JANUARY 2021 TO 31 DECEMBER 2021

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 - 16

THE PHILIP RECKITT EDUCATIONAL TRUST FUND

CHARITY NUMBER: 529777

TRUSTEES' ANNUAL REPORT

FOR THE YEAR FROM 1 JANUARY 2021 TO 31 DECEMBER 2021

Introduction

The trustees present their report and the accounts of the charity for the year ended 31 December 2021. 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 £6,500 to 51 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 continued to be significantly reduced in 2021 due to the continued 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 are expecting an increase in grant applications in 2022 as Covid restrictions are progressively eased.

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 2021 TO 31 DECEMBER 2021

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 towards the travel costs of 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 2021 were as follows:-

December 2021 were as follows:-
	1 Year 11.7% 15.7% 18.4%	3 Years* 8.8% 8.3% 7.1%
Total return performance
Charity's portfolio
Benchmark Index
FTSE 100
* 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 2021 included the following:-

• Quick roll outs of vaccination programs and the deployment of large fiscal stimulus packages across the developed world have helped improve the outlook for the global economy during the year.

• Unfortunately economies around the world are also experiencing rising rates of inflation, driven by rising energy prices, the recovery in economic activity and shortages of labour due to covid restrictions. Currently there is no consensus as to whether this is a temporary phenomenon or something more persistent that governments may need to take action against which would curtail future economic growth.

• A recovery in cyclical value based stocks in the year, in which the portfolio was underweight, was the primary cause of the underperformance of the portfolio against its benchmark and the FTSE 100 indices.

• The recent underperformance against the benchmark also reflects the portfolio's under exposure to the US technology giants which have continued to take a growing share of the global equity index. The investment manager has restricted the portfolio's exposure to this sector due to a lack of dividend yield, high valuations and the need to maintain a well balance portfolio.

• Despite the recent underperformance the investment manager's decision to keep the portfolio overweight in quality companies which tend to exhibit a steady appreciation in capital and income over time has served it well over the longer term with the portfolio outperforming the benchmark and FTSE 100 indices over the last three years.

• The majority of the companies in the portfolio continue to report steady growth in sales, earnings and dividends. The investment manager believes the portfolio remains well diversified and positioned for long term capital and income growth.

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THE PHILIP RECKITT EDUCATIONAL TRUST FUND

CHARITY NUMBER: 529777

TRUSTEES' ANNUAL REPORT

FOR THE YEAR FROM 1 JANUARY 2021 TO 31 DECEMBER 2021

Having considered the investment manager's review the trustees accept that, despite the recent underperformance, the longer term performance of the portfolio remains 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 increased by 11% to £35,980 (2020: £32,456);

• Total expenditure for the year increased by 12% to £28,245 (2020: £25,258);

• Total expenditure for the year represented 79% of total income (2020: 78% of total income);

• After adding in net gains of £92,578 from investments (2020: net losses of £59,988) the resulting net income for the year amounted to £100,313 (2020: net expenditure of £52,790);

• The market value of the investment portfolio at the year end amounted to £1,121,732 (2020: £1,037,926) which represents an increase of 8% on the previous year end;

• The total net assets of the charity at the year end amounted to £1,178,447 (2020: £1,078,134) which represents an increase of 9% 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 UK and overseas equities with investment in specialist areas being directed through investment trusts and unit trusts;

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

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.

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THE PHILIP RECKITT EDUCATIONAL TRUST FUND

CHARITY NUMBER: 529777

TRUSTEES' ANNUAL REPORT

FOR THE YEAR FROM 1 JANUARY 2021 TO 31 DECEMBER 2021

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

Reference and administrative	details
Charity name:	The Philip Reckitt Educational Trust Fund
Other names the charity uses:	Sir Philip Reckitt Educational Trust
	SPRET
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 Retired 22 June 2021 Martin Needler John Lane Glynis Witham Robert Walpole Jeremy Allison Appointed 27 August 2021

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THE PHILIP RECKITT EDUCATIONAL TRUST FUND

CHARITY NUMBER: 529777

TRUSTEES' ANNUAL REPORT

FOR THE YEAR FROM 1 JANUARY 2021 TO 31 DECEMBER 2021

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 June 2021 annual general meeting Martin Needler gave notice of his intention to retire as a trustee at the annual general meeting in June 2022.

Names and addresses of advisers

Names and addresses of advisers	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
	1 June 2022

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THE PHILIP RECKITT EDUCATIONAL TRUST FUND

INDEPENDENT EXAMINER'S REPORT

ON THE ACCOUNTS FOR THE YEAR FROM 1 JANUARY 2021 TO 31 DECEMBER 2021

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 2021 to 31 December 2021 set out on pages 7 to 16.

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 6 June 2022

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THE PHILIP RECKITT EDUCATIONAL TRUST FUND

CHARITY NUMBER: 529777

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR FROM 1 JANUARY 2021 TO 31 DECEMBER 2021

Income			Unrestricted funds 2021 2020 £ £ 35,980 32,456 35,980 32,456 10,119 4,020 18,126 21,238 28,245 25,258 7,735 7,198	Unrestricted funds 2021 2020 £ £ 35,980 32,456 35,980 32,456 10,119 4,020 18,126 21,238 28,245 25,258 7,735 7,198	Unrestricted funds 2021 2020 £ £ 35,980 32,456 35,980 32,456 10,119 4,020 18,126 21,238 28,245 25,258 7,735 7,198
	Note			2021
				£
Investments	3		35,980
Total Expenditure
			35,980
Raising funds	4		10,119
Charitable activities	5		18,126
Total Net income before investment gains/(losses)
			28,245
			7,735
Net gains/(losses) on investments	10		92,578 100,313 100,313		(59,988)
Net income/(expenditure) Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward
					(52,790)
					(52,790)
					1,130,924 1,078,134
		1,078,134
		1,178,447

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THE PHILIP RECKITT EDUCATIONAL TRUST FUND

BALANCE SHEET

AS AT 31 DECEMBER 2021

Fixed assets			Unrestricted funds	Unrestricted funds	Unrestricted funds	Unrestricted funds
	Note			2021		2020
				£		£
Investments	11	1,121,732			1,037,926
Total fixed assets Current assets
		1,121,732			1,037,926
Debtors	14	150			440
Cash at bank and in hand	15	64,881			46,430
Total current assets
		65,031			46,870
Creditors: amounts falling due within one year	16	8,316			6,662
Net current assets Total assets less current liabilities Total net assets Funds of the charity Unrestricted funds Revaluation reserve Total funds
		56,715			40,208
		1,178,447			1,078,134
		1,178,447			1,078,134
		867,461			844,130
		310,986			234,004
		1,178,447			1,078,134
Signed by one trustee on behalf of all the trustees: John Lane
1 June 2022

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THE PHILIP RECKITT EDUCATIONAL TRUST FUND

NOTES TO THE ACCOUNTS

FOR THE YEAR FROM 1 JANUARY 2021 TO 31 DECEMBER 2021

1. General information and basis of preparation

• 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 37,871 - Average annual grant and grant support expenditure (30,921) - Average annual fundraising and governance expenditure (12,855) - Average net expenditure before investment gains and losses (5,905)	£ - Average annual income 37,871 - Average annual grant and grant support expenditure (30,921) - Average annual fundraising and governance expenditure (12,855) - Average net expenditure before investment gains and losses (5,905)
	(5,905)
- Average annual investment gains - Average annual net surplus per annum	72,787 66,882

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 2021 TO 31 DECEMBER 2021

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 2021 TO 31 DECEMBER 2021

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.

3. Income from investments		2021		2020
Income from listed investments 4. Expenditure on raising funds Investment manager's fees Rollits investment support fees		£		£
	35,980		32,456
	35,980		32,456
		2021		2020
		£		£
	9,735		4,020
	384		-
	10,119		4,020

From September 2020 the investment manager switched from a combined quarterly fee and dealing commission system of charges to an all inclusive system of quarterly portfolio management fees.

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

5. Expenditure on charitable activities Hull and East Riding of Yorkshire grants Norwich and Norfolk grants Total grant commitments Grantmaking support costs Governance costs		2021		2020
		£		£
		(50)		(700)
	6,550		11,210
	6,500		10,510
	3,468		3,450
	8,158		7,278
	18,126		21,238

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THE PHILIP RECKITT EDUCATIONAL TRUST FUND

NOTES TO THE ACCOUNTS FOR THE YEAR FROM 1 JANUARY 2021 TO 31 DECEMBER 2021

The lockdowns and travel restrictions imposed by many countries around the world due to the Covid-19 pandemic continued to cause many educational events to be postponed or cancelled in 2021. Where events have been postponed after a grant has been paid the trustees have usually agreed to allow the grantee to retain the grant money if they confirm they will use it to attend the rescheduled event.

The Hull branch of the charity experienced negative grant awards in 2021 and 2020 due to the reversal of grants awarded and paid in previous years subsequently being postponed, cancelled and repaid in a later year.

The Norwich branch also suffered from events being postponed and cancelled but overall fared better with many of the events for which it awarded grants managing to go ahead in the year.

6.	Analysis of grant commitments Charitable purpose for which grants made		Grants to	Grants to		Grants to	Grants to		Total		Total
		institutions			individuals				2021		2020
				£			£		£		£
	Advancement of education			-			6,500	6,500		10,510
				-			6,500	6,500		10,510
	Total number of grants awarded			-			51	51		76

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.

7.

Grantmaking support costs Rollits grantmaking support fees Norfolk administrator's fees Norfolk administrator's office costs Website costs Information Commissioner's Office annual registration fee		2021		2020
		£		£
	1,236		1,248
	1,600		1,600
	417		387
	180		180
	35		35
	3,468		3,450

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 a summary grants report for review by the trustees at the annual general meeting.

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THE PHILIP RECKITT EDUCATIONAL TRUST FUND

NOTES TO THE ACCOUNTS

FOR THE YEAR FROM 1 JANUARY 2021 TO 31 DECEMBER 2021

8. Governance costs Independent examiner's fee Rollits accounting fees Rollits legal and agm fees Bank interest and charges		2021		2020
		£		£
	1,080			990
	3,840		3,720
	3,228		2,568
	10		-
	8,158		7,278

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 Independent examiner's fees for reporting on the accounts 10. Gains and losses on investments Gains and (losses) realised during the year Gains and (losses) on revaluation at the year end Total investment gains and (losses) per the SoFA	9. Fees for examination of the accounts Independent examiner's fees for reporting on the accounts 10. Gains and losses on investments Gains and (losses) realised during the year Gains and (losses) on revaluation at the year end Total investment gains and (losses) per the SoFA			2021		2020
				£		£
			1,080			990
				2021		2020
				£		£
					(39,502)
					(20,486)
					(59,988)
11. Fixed asset investments: movements summary Cash & cash		Listed		2021		2020
Market value at beginning of year Add: additions to investments during the year Less: investment disposals at carrying value Add/(deduct): movement due to changes in listed inv'ts Add/(deduct): transfers in/(out) in the year Add/(deduct): net gain/(loss) on revaluation Market value at end of year	equivalents	investments		Total		Total
	£	£		£		£
	8,713	1,029,213	1,037,926		1,098,011
	-	95,153	95,153		261,846
	-	(87,283)	(87,283)		(307,082)
	12,278	-	12,278		5,637
	(9,546)	-	(9,546)		-
	-	73,204	73,204		(20,486)
	11,445	1,110,287	1,121,732		1,037,926

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THE PHILIP RECKITT EDUCATIONAL TRUST FUND

NOTES TO THE ACCOUNTS

FOR THE YEAR FROM 1 JANUARY 2021 TO 31 DECEMBER 2021

Historic cost analysis of investments held at the year end: Listed investments Cash held for reinvestment
		799,301			795,209
		11,445			8,713
		810,746			803,922
Fixed asset investments: valuation analysis		Fair value			Fair value
	at year end			at year end
			2021			2020
			£			£
Cash or cash equivalents		11,445			8,713
Listed investments		1,110,287			1,029,213
Total		1,121,732			1,037,926

12. Fixed asset investments: valuation analysis

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.

Fixed asset investments: material holdings Holdings>5% of total listed investments at 31 December 2021 Securities Trust of Scotland Plc Murray International Trust Plc		Market	Market	Share of	Share of
			value		total
			£		%
		61,248		5.52%
		57,800		5.21%
	119,048			10.73%

13. Fixed asset investments: material holdings

Current assets: debtors Amounts falling due within one year Other debtors:- HMRC tax reclaims Dividends due Rathbone income account Grant refund receivable		2021		2020
		£		£
		-		136
		150		64
		-		130
		-		110
		150		440

14. Current assets: debtors

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THE PHILIP RECKITT EDUCATIONAL TRUST FUND

NOTES TO THE ACCOUNTS

FOR THE YEAR FROM 1 JANUARY 2021 TO 31 DECEMBER 2021

15. Current assets: cash at bank and in hand HSBC community account Lloyds current account		2021		2020
		£		£
	54,415		27,328
	10,466		19,102
	64,881		46,430

16. Creditors and accruals	Amounts falling due	Amounts falling due	Amounts falling due	Amounts falling due	Amounts falling due	Amounts falling due	Amounts falling due	Amounts falling due	Amounts falling due	Amounts falling due	Amounts falling due	Amounts falling due
Other creditors:- Grant commitments Independent examiner's fee Rollits' fees Investment manager's fees Accruals and deferred income Total				within one year						after one		year
			2021			2020			2021			2020
			£			£			£			£
			650			-			-			-
		1,080				990			-			-
		4,056			3,336				-			-
		2,525			2,336				-			-
		5			-				-			-
		8,316			6,662				-			-

17. Contingent liabilities and contingent assets

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

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.

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THE PHILIP RECKITT EDUCATIONAL TRUST FUND

NOTES TO THE ACCOUNTS

FOR THE YEAR FROM 1 JANUARY 2021 TO 31 DECEMBER 2021

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.

20. Transactions with related parties

					2021	2021	2021			2020	2020	2020
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		8,688			4,056		7,536			3,336
				8,688			4,056		7,536			3,336

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 on a quarterly basis, shortly after the end of each calendar quarter, 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.

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