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2021-04-05-accounts

ANNUAL REPORT

5 APRIL 2021

The Peak 5 Wilton Road London SW1V 1AP

CONTENTS CONTENTS PAGE
1 The Trustees’ Report 1 - 10
2 Independent Auditors’ Report 11 - 13
3 Statement of Financial Activities 14
4 Balance Sheet 15
5 Cash Flow Statement 16
6 Notes to the Accounts 17 - 24

Legal and Administrative

The J J Charitable Trust (No. 1015792) was established under a Trust Deed dated 9 December 1992.

Trustees
Registered
Office
Principal
Officers
Bankers
Solicitors
Auditors
Investment
Advisers
Investment
Powers
Objects		 Mr J J Sainsbury
Ms L Guard
Mr M L Sainsbury
Ms C Gonella (Appointed 5 May 2021)
The Peak
5 Wilton Road
London SW1V 1AP
Mrs K Everett
Chief Operating Officer
Mr M Woodruff
Executive
Mrs S Ferguson
Executive
Mrs E Beresford Deputy Executive
Mr A Shah
Senior Finance Partner
All the Principal Officers are employed on a part-time basis.
Child & Co
1 Fleet Street
London EC4Y 1BD
Portrait Solicitors
21 Whitefriars Street
London EC4Y 8JJ
Crowe U.K. LLP
55 Ludgate Hill
London EC4M 7JW
Schroder & Co Limited
12 Moorgate
London EC2R 6DA
The Trust Deed empowers the Trustees to appoint investment advisers
who have discretion to invest the funds of the Trust within guidelines
established by the Trustees.
The objects of the Trust as given in the Trust Deed are for general
charitable purposes.

Report and Accounts – 5 April 2021

Organisation

The Trust is one of the Sainsbury Family Charitable Trusts (SFCT), which share a common administration.

The Trustees are appointed by existing Trustees and are provided with relevant information relating to their responsibilities as Trustees. They are responsible for the overall direction and supervision of The J J Charitable Trust; they set the Trust’s strategy, review proposals and approve grants. The Trustees delegate day-to-day operations to the Trust’s Lead Executive, Mark Woodruff, and Executive, Sian Ferguson.

Trustees are aware of the Charity Governance Code published in 2017 (updated in March 2021) which sets out the principles and recommended practice for good governance within the sector. The Charity has reviewed its governance arrangements against the principles within the code and believes that it is compliant with the code whilst maintaining its need to operate its governance efficiently.

The remuneration of the senior staff (including SFCT management personnel) is reviewed by the Trustees on an annual basis, taking into account the requirements of their role and performance during the year. From time to time, the SFCT Management Committee benchmarks pay levels against the comparable positions in similar organisations. The Committee has instructed a full reward evaluation process during 2020/2021, in order to ensure that the Trusts fully meet their responsibilities and aspirations for fair and equal pay for employees.

The Trustees are fully aware of the requirements and duties set out in the Charities (Protection and Social Investment) Act 2016. The Trust does not raise funds from the public and as such has no fundraising activities requiring disclosure under SI 62A of the Charities Act 2011.

Grant Making Policy

Proposals are generally invited by the Trustees, or initiated at their request. Unsolicited applications are discouraged and are unlikely to be successful, unless they are closely aligned to the Trust’s areas of interest, which lie mainly in literacy support, and environmental and energy sustainability. The Trustees’ objective is to support innovative schemes with seed-funding, and development support, leading to sustainability and successful replication. Grants are not normally made to individuals.

Reserves Policy

The Trust holds both expendable endowment and unrestricted income funds.

It is the policy of the Trustees to approve grants for payment over a period of years, subject to the fulfilment of certain conditions over the life of the grant. Commitments to be paid within twelve months are accrued in the accounts. Shortfall in the availability of unrestricted funds will be met from the Trust’s expendable endowment and a transfer of £782,113 was made during the year.

The need for unrestricted income funds will vary from year to year and the Trustees will continue to review the position. As at 5 April 2021, the Trust held total funds of £48.5m (2020: £39.5m) which includes expendable endowment of £48.5m (2020: £39.5m).

Investment Policy and Performance

In making investment decisions, environmental and ethical considerations are taken into account, to align investments with the Trust’s policies whilst still seeking maximum return. The long-term goal of the Trust is to move into responsible investments in companies which are based or rely on

Report and Accounts – 5 April 2021

sustainable resources. The Trustees regularly meet the investment managers to discuss strategy and review performance.

The Trustees are committed to using some of the Trust’s expendable endowment for impact investing that seeks a financial return, as well as produces social and environmental benefits in accordance with the Trust’s objectives. Initially, focus was on four different sectors: forestry, microfinance in developing countries, renewable energy, and clean technology infrastructure. This has been extended to include social impact. The Trustees are interested in sharing their experience in impact investing with other investors, to improve their own knowledge, as well as to encourage more investors to adopt the same approach. A specialist has been appointed by the Trustees as adviser on investment opportunities in this field.

During the year the return on the discretionary portfolio was 23.2%, over-performing the benchmark of 22.9%.

The Trust is a signatory to Divest Invest which commits the Trustees to sell any shares in fossil fuel holdings and invest a proportion of the endowment in ‘climate solutions’, such as renewable energy, energy efficiency and clean tech. This decision has not had a detrimental financial impact on the value of the Trust’s investment portfolio.

The Trustees remain concerned that, notwithstanding the removal of direct investments in fossil fuels, many of the Trust’s investments may conflict with the Trustees’ charitable commitments. They are unclear whether and how they are expected to align their investments with their stated objectives and their commitments to wider society, including those forms of investment which may be at variance with their charitable intentions, particularly in the light of climate change.

During this reporting period, the Mark Leonard Trust, of which Julian Sainsbury is also a trustee, applied to the Charity Commission to seek the Commission’s formal consent under s115 Charities Act 2011 to obtain legal clarity from the High Court. The Charity Commission responded to the application on 15 January 2021, noting that a decision was to be put on hold until the Commission had completed its consultation and review of ‘Responsible Investment’. The Mark Leonard Trust subsequently applied to the High Court for permission, on the basis that the ‘on hold’ decision was tantamount to a refusal. The High Court accepted the application and on 14 April 2021 gave permission for a virtual hearing to be held for a High Court judge to review the the s115 application. Trustees await the judgement from that court case to provide greater clarity on their investment duties.

Risk Assessment

The Trustees have examined the major strategic, business and operational risks to which the Trust may be exposed. Through the joint office of the Sainsbury Family Charitable Trusts, adequate systems are in place to manage such potential risks as the Trustees have identified. The Trustees continue to be vigilant and to keep processes under review.

The Trustees identified the uncertainty of financial returns to constitute the charity's major financial risk. This is mitigated by having a diversified financial portfolio under the management of a major investment house. The Trustees regularly review investment strategy and monitor financial performance. They also operate a grant distribution formula that helps to ensure the stability of resources available for grant awards in any given year.

Another major risk is a misuse of funds by a beneficiary. To mitigate this risk, the Trustees normally restrict grants to charities registered with the UK Charity Commission, or equivalent bodies for

Report and Accounts – 5 April 2021

charitable purposes. The awards are made following thorough assessment, and grants are regularly monitored. Multi-year grants are paid only on receipt of satisfactory progress reports.

Charity and Public Benefit

Trustees are aware of the Charity Commission guidance on Public Benefit and confirm that they have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to it. They consider the full information, which follows in this annual report, about the Trust’s aims, activities and achievements in the many areas of interest that the Trust supports, demonstrates the benefit to its beneficiaries and, through them, to the public, that arise from those activities.

Achievements and Financial Review

The Trustees met four times during the year to make grants and review investments.

During the year the total asset value of the Trust increased from £39.5m at 5 April 2020 to £48.5m at 5 April 2021, an increase of 22.8%. The net unrestricted income of the Trust for the year after charging grant related support costs was £408,814 compared to £869,827 for the year to 5 April 2020.

Having assessed the Trust’s financial position and plans for the foreseeable future, the Trustees are satisfied that it remains appropriate to prepare the financial statements on the going concern basis.

The investment portfolio has performed strongly during the year and has recovered the reduction in value, caused by the impact of the Covid-19 pandemic, reported for last year.

The Charity has adopted a total return basis to budget for its annual income. The endowment assets of the Trust remain significant, and the Trust will continue to pay out to its beneficiaries in accordance with the Trust’s objects.

During the year the Trustees approved 46 grants totalling £1,202,666, some of which are payable over more than one year. Grants approved during the year may be analysed by number and by value in the categories set out below. Payments made relate to grants approved in this and earlier years.

Environment
Literacy Support
General		 New Grants Approved New Grants Approved New Grants Approved Payments Made Payments Made
Number £ % £ %
31
8
7		 1,027,916
59,750
115,000		 85.5
5.0
9.5		 744,558
439,246
130,000		 56.3
33.7
10.0
46 1,202,666 100.0 1,313,804 100.0

Report and Accounts – 5 April 2021

G R A N T S A P P R O V ED

ENVIRONMENT UK - £1,027,916

Cultural Change for Sustainable Lifestyles

The Trust has continued to support its Sustainable Fashion programme, begun in 2019, by funding communications, education, and campaigns to catalyse and help expedite the rapid transition to a sustainable fashion system. Fashion was considered a good starting point to explore more sustainable economic and business models for the future in general, and to learn about the psychological drivers of over-consumption.

The principal outcomes from this programme so far include the publication and wide adoption of Earth Logic (www.earthlogic.info) by academics and fashion practitioners around the world, Atlas of the Future’s manifesto for the sustainable fashion media of the future, a Fashion and Media policy brief from the University of Westminster, and ‘Leeds Fashion Futures’, a trial project of the Royal Society of Arts in a city built on the textile and fashion industries to show the way to a new vision and beginning for fashion.

A review of the Sustainable Fashion Programme was conducted in late 2020, to record the outcomes and capture learning for the future work of the trust. Thus in 2020, the Trustees agreed upon a new mission statement to be adopted in 2021-22, towards creating system change through cultural change in the key sectors, notably business, finance, media and education. This sets out five new areas of focus:

In line with these new objectives, the Trustees have begun substantial work with Purpose Disruptors, a collective of advertising professionals seeking to align the wider advertising sector with the Paris Agreement, and thus support the transition to a net-zero carbon economy. The Purpose Disruptors has grown to a community of 1500 advertising professionals, and launched the Great Reset, a competition to showcase new, low-carbon behaviours that emerged from lockdown during the Covid-19 pandemic. The Great Reset was awarded the advertising industry’s Purpose Awards for Best Environmental Cause 2020.

Atlas of the Future - £5,000

For core-cost support through the Covid-19 crisis.

British Ceramics Confederation - £4,799

For consultancy in support of a Net-Zero Carbon Transition workshop

Report and Accounts – 5 April 2021

Earth Logic Transition Funding - £20,840

Towards core costs and the translation of the Earth Logic report into Spanish, Portuguese and Swedish.

Financial Times - £30,000

Towards the Standpoint video.

On Purpose Group - £52,000

To support media content on sustainable living, prosperity and climate change.

Purpose Disruptors - £550,810

Towards phases 1, 2 and 3 of The Great Reset, and for a project to engage the advertising and other creative industries in building a vision for the future to present at COP26 in November 2021.

Homespun - £10,000

Towards a pilot project in Lancashire for producing home-grown textiles and garments.

Karoshikula Ltd - £1,200

For promotional and information material aimed at public and government audiences for the launch of the British Ceramics Net Zero Initiative.

Climate Change Collaboration

The Climate Change Collaboration (‘the Collaboration’) was created in 2009 by four of the Sainsbury Family Charitable Trusts – the Ashden Trust, the JJ Charitable Trust, the Mark Leonard Trust, and the Tedworth Charitable Trust. In this reporting period the Tedworth Trust was not involved in the Collaboration.

In 2019, it revised its mission to support the ambition to limit stabilise global temperature rise to 1.5°C) by phasing out fossil fuels, increasing investment in renewable solutions and aligning finance and political systems to this target without overshoot, and to the United Nations’ Sustainable Development Goals.

In recent years, the area of focus for the collaboration has been Divest Invest (now a global movement of investors including foundations, faith communities, pension funds, sovereign wealth funds, universities with collectively over $14 trillion of assets under management) and aligning investment with limiting climate change to 1.5°C. For further information on DivestInvest, see www.divestinvest.org. The Climate Change Collaboration has continued to support ‘communitybased organisations and campaigns that advocate for a fair and timely transition from fossil fuels.

Trustees recognise that it is very important to raise public awareness and confidence that acting on climate change is possible, affordable and has social and health benefits. The Climate Change Collaboration continued to support initiatives which improve communication around climate change and which engage the public with it. The Collaboration also made new grants to support legal challenges against continued investment or extraction and production of fossil fuels that appear to conflict with international legislation or commitments and/or national legislation.

Bates Wells and Braithwaite LLP - £2,800

For research on the feasibility of a super-complaint from a designated consumer body against the potential mis-selling of investment products that fail to disclose financial risks posed by climate change.

Report and Accounts – 5 April 2021

C40 Cities Climate Leadership Group - £25,000

Towards the first year of a second phase of the C40 Divest Invest Forum, supporting major cities to commit to Divest Invest.

Carbon Tracker - £8,667

To investigate the scale of primary finance lending flowing from banks to fossil fuel projects and companies.

Citizens UK - £55,000

Towards phases 1 and 2 of the new community-based programme on climate change.

FrameWorks Institute - £6,176

For supplementary research in collaboration with YouGov on how the pandemic has affected public views on climate change.

Friends of the Earth Charitable Trust - £7,458

Towards continued collaboration with Platform London on its divestment work.

Global Legal Action Network (GLAN) - £27,000

Towards the cost of legal researchers for a human rights case at the European Court of Human Rights on the effect on communities’ health and wellbeing by greenhouse gas-emitting companies.

On Road Media - £42,500

To support the second phase of strategic work on communications around climate change.

Platform - £20,000

Towards the on-going Divest Invest programme in partnership with Friends of the Earth.

Students Organising for Sustainability UK - £15,000

Towards phase 2 of support to student advocacy across the world with elected public representatives, to secure commitments on mandatory climate education, climate justice, green jobs, carbon targets, health and mental health affected by climate change, and biodiversity.

Systemiq - £12,000

To provide advice to As You Sow.

The Commitment - £3,333

To support advocacy activities that encourage the public to engage with their MPs and local councillors on climate change.

Uplift - £20,000

For core costs towards coordinating the end of government support for domestic extraction of fossil fuels within the UK.

350.org - £8,333

To support communities in cities as they engage with their elected representatives on Divest Invest.

Report and Accounts – 5 April 2021

Other Environment Grants

Ashden – Climate Solutions in Action - £100,000 Towards core costs.

LITERACY SUPPORT - £59,750

The Trustees aim to improve literacy teaching at primary and secondary school, through schemes and techniques supporting learners in difficulties and those with specific learning difficulties, including dyslexia.

They also wish to improve literacy skills among adults who lost out at school, by encouraging the right training and access to employment for people overcoming homelessness, or prison and offending. Every year, the Trustees have been providing funds to Haven Distribution, to enable prisoners to buy books in support of their education and training, as well as reading for pleasure.

The Trustees’ main schools programme is “Literacy for Learning”. A successful pilot scheme commissioned from the National Literacy Trust, originally with six core secondary-level academies, demonstrated how transformed teacher skills could place students’ own interests in reading, and their aspirations for life, at the heart of the subjects that most engaged them. The resources, training and advisory support spread to over fifty schools after three years, reaching 6,000 students and 1,000 teachers. Considerable advances in reading ability and GCSE grade attainment were gained in relatively short timeframes. In early 2019 a programme Literacy for Learning into 500 schools, and hundreds of thousands of engaged young people learning online within three years. It is now working with 10% of secondary schools in England, mainly working in city hubs or academy groups, with a view to supporting communities where there is greater disadvantage and related educational deficit. The aim throughout has been for an experience of reading at school that is both enjoyable and useful for revealing potential options and inspiring the chances of fulfilment in work for the future ahead. For more information, see https:/literacytrust.org.uk/secondary/

During the school lockdowns, Literacy for Learning provided the basis for extensive transfer of support to teachers and students needing to work remotely. The body of years of literacy work engaging authors in books and reading with students and their subjects at secondary school enabled National Literacy Trust to become the provider of the virtual library resource in the new national online Oak Academy.

Future work will focus literacy support at the critical early years and primary stages, especially where a person’s special learning difficulty in reading has yet to be recognised. Trustees also remain concerned to support school leavers, and others with dyslexia or reading difficulties, on skills and entry into employment. To this end a small grants scheme has been established, to support local groups so that volunteer mentors can be resourced to build literacy in the early years at schools or equip school leavers who still experience reading difficulties with improved skills as they make the transition to work, apprenticeships or college.

Age UK Staffordshire - £10,000

To rebuild its Children Matter volunteer support from among the over-50s to help primary children struggling to read. This grant was cancelled in 2020/21 as it no longer could be fulfilled.

Bringing Words to Life Ltd - £5,000

Towards extending pre-GCSE school-leaver creative literacy into new secondary schools.

Report and Accounts – 5 April 2021

British Dyslexia Association (BDA) - £9,750

To create free webinars for parents of dyslexic children learning from home during the Covid-19 pandemic.

Learning Partnerships - £5,000

Towards the Let’s Read primary school literacy mentor programme in inner-city Leeds.

Ready, Steady, Read - £5,000

Towards recruiting new reading mentors in primary schools in Hull.

Schoolreaders - £10,000

Towards recruiting new partner schools and local community volunteers in Stoke and north Staffordshire.

Social Inclusion and Dyslexia - £5,000

Towards employability support to School and Care Leavers with dyslexia in Sunderland.

Youth Education Service - £10,000

Towards dyslexia support courses for 16-18 year-olds in Somerset.

GENERAL - £115,000

Bristol Refugee Rights - £20,000

For relief aid during the Covid-19 pandemic and lockdowns.

Intensive Care Society - £10,000

To support Intensive Care staff through the challenges of the pandemic.

National Emergencies Trust - £10,000

Towards the Coronavirus-19 Appeal.

The Sainsbury Archive - £25,000

Towards core costs.

Trussell Trust - £20,000

Towards the Covid-19 pandemic and food bank appeal.

Wiltshire Community Foundation - £10,000

Towards the Covid-19 Response Fund.

Women’s Aid Federation of England - £20,000

For relief aid during the Covid-19 pandemic and lockdowns.

Cancelled Grants

One grant totalling £6,176 was cancelled during the year.

Report and Accounts – 5 April 2021

Future Plans

The Trust will continue to support the activities set out on pages 5 to 9 by the award of grants, with renewed focus, as the pandemic recedes and commerce revives, on sustainable fashion and the sustainable ceramics and pottery industry.

Statement of Trustees’ Responsibilities

The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations.

Charity law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law.

Under charity law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of its net outgoing resources for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity’s transactions, and disclose with reasonable accuracy at any time the financial position of the charity, as well as enable them to ensure that the financial statements comply with the Charities Act 2011 and the provisions of the Trust Deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Trustees on 30 November 2021 and signed on their behalf by:

…………………………………………………….

TRUSTEE

Report and Accounts – 5 April 2021

Independent Auditor’s Report to the Trustees of The J J Charitable Trust

Opinion

We have audited the financial statements of The J J Charitable Trust (‘the charity’) for the year ended 5 April 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. 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 trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

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

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 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 to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Report and Accounts – 5 April 2021

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 10, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

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

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and noncompliance with laws and regulations are set out below.

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation (GDPR).

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the override of controls by management. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

Report and Accounts – 5 April 2021

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Crowe U.K. LLP Statutory Auditor London

Date 15 December 2021

Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

Report and Accounts – 5 April 2021

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2021

Unrestricted Expendable Total Funds Total Funds
Income and Endowment from: Notes Funds
£		 Endowment
£		 2021
£		 2020
£
Investments 3 663,995 - 663,995 1,075,999
Other income 9,818 - 9,818 21,822
Total Income 673,813 - 673,813 1,097,821
Expenditure on:
Raising funds
Investment management fees 4 - 211,167 211,167 201,626
Charitable activity:
Grant-making:
Grant expenditure 5 1,190,927 - 1,190,927 1,072,427
Grant related support costs 6 264,999 - 264,999 _227,994 _
Cost of grant-making 1,455,926 - 1,455,926 1,300,421
Total expenditure 1,455,926 211,167 1,667,093 1,502,047
Net operating (deficit) (782,113) (211,167) (993,280) (404,226)
Gains / (losses) on investments 9 - 9,966,372 9,966,372 (7,046,067)
Exchange gains / (losses) - 15,867 15,867 (39,232)
Transfers between funds 782,113 (782,113) - -
Net movement in funds - 8,988,959 8,988,959 (7,489,525)
Reconciliation of funds
Total funds brought forward - 39,483,793 39,483,793 46,973,318
Total funds carried forward - 48,472,752 48,472,752 39,483,793

The notes on pages 17 to 24 form part of these accounts.

Report and Accounts – 5 April 2021

BALANCE SHEET AS AT 5 APRIL 2021

FIXED ASSETS
Tangible fixed assets
Investments
CURRENT ASSETS
Debtors
Cash at bank and in hand
CURRENT LIABILITIES
Creditors -amounts falling due within 1 year
NET CURRENT LIABILITIES
NET ASSETS
CAPITAL FUNDS
Expendable endowment
INCOME FUNDS
Unrestricted funds		 Notes Notes 2021
2020
£
£
10,204
4,560
48,759,225
39,629,605
48,769,429
39,634,165

213,355

577,561
790,916

941,288
(296,677)
(150,372)
48,472,752
39,483,793
48,472,752
39,483,793
-
-
48,472,752
39,483,793
8
9
10
11
12
12		 £
194,829
211,251
406,080
702,757

The financial statements were approved and authorised for issue by the Trustees on 30 November 2021 and were signed on their behalf by :

…………………………………………… TRUSTEE

The notes on pages 17 to 24 form part of these accounts.

Report and Accounts – 5 April 2021

CASH FLOW STATEMENT FOR THE YEAR ENDED 5 APRIL 2021

----- Start of picture text -----
2021 2020
£ £
Cash flows from operating activities
Net cash (used in) operating activities (1,882,924) (1,057,380)
Cash flows from investing activities:
Dividends and interest 663,995 1,075,818
Exchanges gains / (losses) 15,867 (39,232)
Purchase of investments (23,043,670) (10,139,682)
Sale of investments 24,107,443 8,743,586
Net cash generated by / (used in) investing activities 1,743,635 (359,510)
Change in cash and cash equivalents in the year (139,289) (1,416,890)
Cash and cash equivalents at the beginning of the year 963,264 2,380,154
Cash and cash equivalents at the end of the year 823,975 963,264
Reconciliation of net expenditure to net cash flow from operating activities 2021 2020
£ £
Net movement in funds as per the statement of financial activities 8,988,959 (7,489,525)
(Gains) / losses on investments (9,966,372) 7,046,067
Dividends and interest (663,995) (1,075,818)
Exchanges (gains) / losses (15,867) 39,232
Fixed asset additions (9,245) -
Depreciation charges 3,601 2,280
Decrease / (increase) in debtors 18,526 (35,644)
(Decrease) / increase in creditors (238,531) 456,028
Net cash (used in) operating activities (1,882,924) (1,057,380)
----- End of picture text -----

Analysis of the balance of cash as shown in the balance sheet
Cash at bank and in hand
Cash balances held by investment manager for reinvestment (Note 9)		 Change in
2021
2020
year
£
£
£
211,251
577,561
(366,310)
612,724
385,703
227,021
823,975
963,264
(139,289)

The notes on pages 17 to 24 form part of these accounts.

Report and Accounts – 5 April 2021

NOTES TO THE ACCOUNTS

1. CHARITABLE STATUS

The J J Charitable Trust is an unincorporated charty (Charity registration number 1015792), registered in England and Wales. The address of the registered office is 5 Wilton Road, London, SW1V 1AP.

2. PRINCIPAL ACCOUNTING POLICIES

a) Basis of preparation

The financial statements have been prepared in accordance with the Charities SORP (FRS102) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015.

The financial statements 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 Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

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

Having assessed the Trust's financial position and plans for the foreseeable future, the Trustees are satisfied that it remains appropriate to prepare the financial statements on the basis that the charity is sustainable as a going concern.

The investment portfolio has performed strongly during the year and has recovered the reduction in value, caused by the impact of the Covid-19 pandemic, reported for last year.

The Charity has adopted a total return basis to budget for its annual income. The endowment assets of the Trust remain significant, and the Trust will continue to pay out to its beneficiaries in accordance with the Trust’s objects.

b) Income recognition

(iii) Interest is included when receivable.

c) Expenditure on Charitable activities

Costs of generating funds represent amounts paid to the Trust's external investment advisors.

Charitable activities expenditure comprises grants and donations awarded by the Trustees in accordance with the criteria set out in the Trust Deed, together with grant related support costs.

Grants for which there is a legally binding commitment are accounted for within the Statement of Financial Activities. Payments that are due within one year of the period-end date are included within grants payable in the Statement of Financial Activities. Other grants are accounted for in the Statement of Financial Activities when conditions attaching to the grant are fulfilled.

Grant related support costs represent staff, office and governance costs incurred in managing the grant award programme.

Report and Accounts – 5 April 2021

NOTES TO THE ACCOUNTS

2. PRINCIPAL ACCOUNTING POLICIES (cont…)

d) Costs of administration

These costs include a share of the staff and office costs of the joint offices of the Sainsbury Family Charitable Trusts, which are allocated in proportion to the time spent on Trust matters and grants paid.

e) Governance costs

Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include fees for statutory audit and legal fees where relevant.

f) Investments

Net realised and unrealised gains and losses are reflected in the Statement of Financial Activities. Investments are shown at mid market value.

Social Impact Investments are carried either at cost less any necessary provision for impairment or fair value where they are traded on an active market.

g) Financial instruments

The Trust has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost using the effettive interest method. Financial assets held at amortised cost comprise cash at bank and in hand, together with accrued interest and other debtors. Financial liabilities held at amortised cost comprise grants payable and accruals.

lnvestments, including bonds held as part of an investment portfolio, are held at fair value at the balance sheet date, with gains and losses being recognised within income and expènditure.

At the balance sheet date the charity held financial assets at fair value of £44,616k (2020: £36,067k).

h) Cash and cash equivalents

Cash and cash equivalents include cash at bank and in hand and short term deposits.

i) Depreciation

Fixed assets are depreciated at rates which reflect their useful life to the Trust. Leasehold improvements are depreciated over the life of the lease.

j) Critical accounting judgements and key sources of estimation uncertainty

ln the application of the charity's accounting policies, which are described in note 2, Trustees are required to make judgements, estimates, assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects the current and future periods.

ln the view of the Trustees, no assumptions concerning the future or estimation uncerrtainty affecting assets and liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

Impact and programme related investments carried at cost are subject to annual impairment review by the Trustees in tandem with external expert advice on the current status of the related activities.

Report and Accounts – 5 April 2021

NOTES TO THE ACCOUNTS

3. INVESTMENT INCOME

Income received on investments may be analysed as follows:

2021
2020
£
%
£
%
Government fixed interest
Other fixed interest		 1,247
-
1,429
-
26,941
4
34,844
3
184,335
28
529,414
49
208,947
31
228,036
21
203,006
31
222,225
21
39,384
6
60,051
6
135
-
-
-
UK equities
Overseas equities
Alternatives
Impact Investments
Other
663,995
100
1,075,999
100

4. COST OF GENERATING FUNDS

These costs relate to the investment manager's fees. The Trustees are of the opinion that these relate to the generation of a total return on the investment portfolio and, as such, have charged the Expendable Endowment with these fees.

5. GRANTS PAYABLE

2021
2020
£
£
£
£
Reconciliation of grants payable:
Commitments at 6 April 2020
728,382
437,755
Grants not accrued at 6 April 2020
-
252,992
Grants approved in the year
1,202,666
819,434
Grants cancelled, refunded or amended
3,261
-
Grants not accrued at 5 April 2021
(15,000)
-
Grants payable for the year
1,190,927
1,072,426
Grants paid during the year
(1,313,804)
(781,799)
Commitments at 5 April 2021
605,505
728,382
Commitments at 5 April 2021 are payable as follows:
2021
2020
£
£
Within one year (Note 11)
605,505
_728,382 _		 2021
2020		 2021
2020		 2021
2020
£
£
£
£
728,382
-
1,202,666
3,261
(15,000)

437,755
252,992
819,434
-
-
1,190,927

Commitments

In addition to the amounts committed and accrued noted above, the Trustees have also authorised certain grants which are subject to the recipient fulfilling certain conditions relating to the delivery of the grant-funded activities. The total amount authorised but not accrued as expenditure at 5 April 2021 was £15,000 (2020: £0).

Report and Accounts – 5 April 2021

NOTES TO THE ACCOUNTS

5. GRANTS PAYABLE (cont…)

The amount payable in the year consisted of the following:

The amount payable in the year consisted of the following:
£
Literacy Support
Age UK Staffordshire 10,000
Schoolreaders 10,000
Youth Education Service 10,000
Net grants payable/cancelled up to £10,000 29,750
Environment - UK
Purpose Disruptors 550,810
Ashden - Climate Solutions in Action 100,000
Citizens UK 55,000
On Purpose Group 52,000
On Road Media 42,500
Financial Times 30,000
Global Legal Action Network (GLAN) 27,000
C40 Cities Climate Leadership Group 25,000
Sustainable Fashion Programme 20,840
Platform 20,000
Uplift 20,000
Students Organising for Sustainability 15,000
Systemiq 12,000
Net grants payable/cancelled up to £10,000 61,027
General
Bristol Refugee Rights 20,000
Trussell Trust 20,000
Women’s Aid Federation of England 20,000
Net grants payable/cancelled up to £10,000 40,000
Total grants payable per Statement of Financial Activities 1,190,927

6. ALLOCATION OF SUPPORT COSTS

Staff costs
Share of joint office costs
Direct costs including travel
Depreciation
Legal and professional fees
Consultancy
Auditors' remuneration		 2021
2020
Grant- Governance
Total
Total
making
£
£
£
£
140,612
4,469
145,081
124,932
29,016
-
29,016
28,654
8,738
-
8,738
47,867
3,601
-
3,601
2,280
181,967
4,469
186,436
203,733
61,157
-
61,157
14,859
7,604
-
7,604
1,800
-
9,802
9,802
_7,602 _
250,728
14,271
264,999
_227,994 _

During the year no Trustee received any remuneration (2020: £nil) or was reimbursed expenses (2020: £nil).

Report and Accounts – 5 April 2021

NOTES TO THE ACCOUNTS

7. ANALYSIS OF STAFF COSTS

ANALYSIS OF STAFF COSTS
2021
£		 2020
£
Wages and salaries 118,258 101,379
Social security costs 13,095
 11,336
Other pension costs 13,728
 12,217
145,081 _124,932 _

The Trust is one of the Sainsbury Family Charitable Trusts which share a joint administration at the Registered Office. 1.8% (2020: 1.6%) of the total support and administration costs of these trusts have been allocated to the JJ Trust, including a proportionate share of the costs of employing the total number of staff serving in the office in 2020/21.

The average number of staff employed during the year was 13, all on a part-time basis (2020: 15). This equates to to 2.1 full-time employees (2020: 2.1).

The Trust considers its key management personnel to comprise the Principal Officers. The total employment benefits, including employer pension contributions, of these key management personnel, were £98,107 (2020: £60,139). No employee earned in excess of £60,000 (2020: Nil).

8. TANGIBLE FIXED ASSETS Leasehold Improvements

TANGIBLE FIXED ASSETS
Leasehold Improvements
Cost
At 6 April 2020
Additions
At 5 April 2021
Depreciation
At 6 April 2020
Charge for the year
At 5 April 2021
Net Book Value
At 5 April 2021
At 5 April 2020		 2021
2020
£
£
22,800
22,800
9,245
-
32,045
22,800
18,240
15,960
3,601
2,280
21,841
18,240
10,204
4,560
4,560
6,840

Report and Accounts – 5 April 2021

NOTES TO THE ACCOUNTS

9. FIXED ASSET INVESTMENTS

Market value 5 April 2020
Add: Acquisitions at cost
Less: Disposals at proceeds value
Net gains / (losses) on investments
Market value 5 April 2021
Investment cash
Total investments		 2021
2020
£
£
39,243,902
44,893,873
23,043,670
10,139,682
(24,107,443)
(8,743,586)
9,966,372
(7,046,067)
48,146,501
39,243,902
612,724
385,703
48,759,225
39,629,605

The investments held as at 5 April 2021 were as follows:

Government fixed interest
Other fixed interest
UK equities
Overseas equities
Alternatives
Other
Cash
Impact investments
Unquoted
Quoted		 2021
2020
Cost
Market
Cost
Market
Value
Value
£
£
£
£
623,538
713,725
1,123,963
1,276,411
1,322,540
1,645,946
1,397,263
1,887,537
3,270,061
5,784,562
7,999,799
11,383,863
20,192,001
25,091,980
13,287,182
15,937,553
6,604,935
8,266,908
4,822,211
5,581,569
950,000
950,000
-
-
612,724
612,724
385,703
385,703
3,922,707
3,530,911
3,475,982
3,176,969
2,103,751
2,162,469
-
-
39,602,257
48,759,225
32,492,103
39,629,605

During the year there was no disinvestment from the investment portfolio (2020: £nil).

10.DEBTORS

Accrued income
Other debtors		 2021
2020
£
£
49,308
111,631
145,521
101,724
194,829
213,355

11.CREDITORS - amounts falling due within one year


Grants payable within one year
Professional charges
Investment management fee
Other creditors		 2021
2020
£
£
605,505
728,382
19,993
22,461
45,277
67,111
31,982
_123,334 _
702,757
941,288

Report and Accounts – 5 April 2021

NOTES TO THE ACCOUNTS

12. ANALYSIS OF NET ASSETS BETWEEN FUNDS


Fund balances at 5 April 2021 are represented by:
Tangible fixed assets
Investments
Current assets
Current liabilities
Total net assets
Movement in the year
Opening balance as at 5 April 2020
Total income and endowments
Cost of raising funds
Cost of grant-making
Net losses on investments
Net losses on currency exchange
Transfers between funds
Closing balance as at 5 April 2021
COMPARATIVE

Fund balances at 5 April 2020 are represented by:
Tangible fixed assets
Investments
Current assets
Current liabilities
Total net assets
Movement in the year
Opening balance as at 5 April 2019
Total income and endowments
Cost of raising funds
Cost of grant-making
Net gains on investments
Net gains on currency exchange
Transfers between funds
Closing balance as at 5 April 2020		 Unrestricted Expendable
Totals
Funds Endowment
2021
£
£
£
-
10,204
10,204
-
48,759,225
48,759,225
657,480
(251,400)
406,080
(657,480)
(45,277)
(702,757)
-
48,472,752
48,472,752
-
39,483,793
39,483,793
673,813
-
673,813
-
(211,167)
(211,167)
(1,455,926)
-
(1,455,926)
-
9,966,372
9,966,372
-
15,867
15,867
782,113
(782,113)
-
-
48,472,752
48,472,752
Unrestricted Expendable
Totals
Funds Endowment
2020
£
£
£
-
4,560
4,560
-
39,629,605
39,629,605
874,177
(83,261)
790,916
(874,177)
(67,111)
(941,288)
-
39,483,793
39,483,793
(131,827)
47,105,145
46,973,318
1,097,821
-
1,097,821
-
(201,626)
(201,626)
(1,300,421)
-
(1,300,421)
-
(7,046,067)
(7,046,067)
-
(39,232)
(39,232)
334,427
(334,427)
-
-
39,483,793
39,483,793

13. RELATED PARTY TRANSACTIONS

There were no related party transactions in 2021 (2020: £0).

Report and Accounts – 5 April 2021

NOTES TO THE ACCOUNTS

14. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2020

Income
Income from investments
Other income
Total income and endowments
Resources expended
Cost of raising funds
Investment management costs
Charitable activities
Grant-making:
Grant expenditure
Grant related support costs
Cost of grant-making
Total expenditure
Gains on investments
Exchange gains
Transfers between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
Net operating (deficit)		 Unrestricted Expendable Total Funds
Funds Endowment
2020
£’000
£’000
£’000
1,075,999
-
1,075,999
21,822
-
21,822
1,097,821
-
1,097,821
-
201,626
201,626
1,072,427
-
1,072,427
227,994
-
227,994
1,300,421
-
1,300,421
1,300,421
201,626
1,502,047
(202,600)
(201,626)
(404,226)
-
(7,046,067)
(7,046,067)
-
(39,232)
(39,232)
334,427
(334,427)
-
131,827
(7,621,352)
(7,489,525)
(131,827)
47,105,145
46,973,318
-
39,483,793
39,483,793

Report and Accounts – 5 April 2021