2021-07-31-accounts

THE SAINSBURY INSTITUTE FOR THE STUDY OF JAPANESE ARTS AND CULTURES

ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2021

THE SAINSBURY INSTITUTE FOR THE STUDY OF JAPANESE ARTS AND CULTURES

ACCOUNTS FOR THE YEAR ENDED 31 JULY 2021

CONTENTS

		Page
Trustees' Report	1	to	6
Independent Auditors' Report	7	to	9
Statement of Financial Activities		10
Balance Sheet		11
Statement of Cash Flows		12
Notes to the Accounts	13	to	21

THE SAINSBURY INSTITUTE FOR THE STUDY OF JAPANESE ARTS AND CULTURES

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 JULY 2021

Charity registration number	1073416
Principal address	The Peak
	5 Wilton Road
	London
	SW1V 1AP
University Trustees	Mr D I Callaghan
	Professor I P Dewing
	Professor D J Richardson
External Trustees	H O N & V Trustee Ltd
	Mr P Hesketh
	Mr J C Burns
Auditors	Crowe U.K. LLP
	55 Ludgate Hill
	London
	EC4M 7JW
Solicitors	Portrait Solicitors
	21 Whitefriars Street
	London
	EC4Y 8JJ
Investment managers	Cazenove Capital Management Limited
	1 London Wall Place
	London
	EC2Y 5AU

1

THE SAINSBURY INSTITUTE FOR THE STUDY OF JAPANESE ARTS AND CULTURES

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 JULY 2021

Structure Governance and	Management
Governing document	The Sainsbury Institute for the Study of Japanese Arts and Cultures
	was established by the Trustees of The Robert and Lisa Sainsbury
	Charitable Trust under a Trust Deed dated 16 December 1998.
	The full name of the Trust is as above. The short name for the
	Institute is 'SISJAC'.
Trustee Selection Methods	The power of appointing University Trustees is exercisable by the
	University of East Anglia ('UEA'). The External Trustees are appointed
	by the continuing External Trustees with them being required
	to appoint those nominated by Lord Sainsbury of Turville.
Organisational structure of	The External Trustees are responsible for investment policy and
the charity and how	management. The Trustees meet twice a year to consider reports from
decisions are made	the External Trustees on investment performance and policy, to
	receive reports on the application of the funds passed to the University
	in order to fulfil the objects of the Trust and to consider the annual
	report and financial statements.
Risk policy	The key risk to the trust fund is the volatility of market investments as
	evidenced by the impact of the Coronavirus pandemic, where the value
	of investments has fluctuated and future investment income is
	anticipated to be substantially lower. The Trustees, in consultation with
	and on the advice of their Investment Advisers, maintain a diverse and
	balanced investment portfolio to mitigate so far as possible against
	adverse risks affecting the overall value of the endowment so that the
	charity can continue to pay out the income generated to the trust
	beneficiary. At the same time, other major risks to which the trust is
	exposed are considered and, where necessary, steps are taken to
	mitigate and minimise those risks. The Charity Commission's internal
	financial control checklist is completed and reviewed annually.
Objectives and Activities
Objects	The objects of the Trust are that the income but not the capital of the
	of the Trust is to be applied for charitable purposes connected with
	the advancement of education and learning by promoting study into
	the research and teaching of the culture of Japan, and specifically
	to pay the costs of employing staff and certain direct running costs
	of SISJAC at the UEA.
Management Board	The UEA activities funded by the Institute are controlled by a
	Management Board whose constitution is determined by the Institute's
	Trust Deed. This Board is made up of two members nominated by
	Lord Sainsbury of Turville, the Vice-Chancellor of the University of East
	Anglia, the Director of the Institute and two academic specialists in
	Japanese Cultural Studies.
	The Vice-Chancellor acts as Chairman of the Board. Sir Tim Lankester
	and Mr Peter Hesketh attend the Board's meetings at the invitation of
	its Chairman.

2

THE SAINSBURY INSTITUTE FOR THE STUDY OF JAPANESE ARTS AND CULTURES

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 JULY 2021

Public Benefit Statement	The Trustees confirm that they have referred to the guidance contained
	in the Charity Commission's general guidance on public benefit when
	reviewing the Trust's aims and objectives and in planning future
	activities (and setting the grant making policy for the year).
Achievements and Performance
Achievements	During the year the Institute distributed £275,494 (2020 - £320,725)
	to the UEA, which continues to support the study of Japanese Arts and
	Cultures.
	The charity had no paid staff.
	The Trustees believe that the charity has sufficient assets to meet its
	obligations.
Director's Report	The Sainsbury Institute has worked hard to deliver on its mission of
	undertaking and disseminating world-class research on all aspects of
	Japanese arts and cultures in a manner adapted to the continuing
	challenges of the Covid-19 pandemic. We achieved this largely by
	focusing on digital outputs, including a thorough overhaul of our website,
	monthly e-bulletins, and online workshops and seminars (including our
	flagship Third Thursday lectures), as well as continuing to produce high
	impact publications. With external support from funding partners, the
	Toshiba International Foundation and the Ishibashi Foundation, we
	shifted our summer programmes to an online format, with our_Online_
	_Summer Programmes in Japanese Cultural Studies_attracting
	hundreds of participants worldwide. We benefited from the expertise
	already gained through one of our major strategic research strands,
	Digital Japan, and were pleased to be able to appoint a Lecturer in
	Japanese Digital Arts and Humanities as of April 2021.
	We collaborated closely with the University’s REF (Research
	Excellence Framework) process, with the result that six SISJAC
	colleagues were included in the submission to the Art and Design Unit
	of Assessment (compared with just one in 2014), which should result in
	a significant financial return, in line with the strategic direction set out by
	the Management Board at its Extraordinary Meeting in 2017. Our
	relationship with the University was further strengthened by the
	successful launch of the new_MA in Interdisciplinary Japanese_
	Studies, a partnership between the Sainsbury Institute and the Faculty
	of Arts and Humanities – and the first new such programme in any
	British university for several decades. As well as generating a new
	sustainable income stream, again in line with the strategic direction
	decided in 2017.

Many of our projects had to be deferred due to the pandemic, but we were able to deliver two exhibitions in partnership with the Sainsbury Centre: Leiko Ikemura: Usagi in Wonderland (July to December 2021), and Faces of Faith (part of our broader Nara to Norwich: art and belief at the ends of the Silk Roads initiative, June to October 2021). Our planned move from our current accommodation at 64

3

THE SAINSBURY INSTITUTE FOR THE STUDY OF JAPANESE ARTS AND CULTURES

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 JULY 2021

Director's Report (cont.)	The Close to the Sainsbury Centre was also deferred from autumn
	2021 to 2024. We are very grateful to the Gatsby Charitable
	Foundation for supporting this decision and our continued use of 64
	The Close, and for generously agreeing to maintain their annual grant to
	the Institute at the same level as previously.
	Professor Simon Kaner, Executive Director.
Financial Review
Reserves policy	The Trustees' policy is to pay the net income to the UEA. The
	restricted fund as at the 31 July 2020 amounted to £21,990 for the
	refurbishment of premises in Norwich owned by Dean and Chapter of
	the Cathedral of Norwich to be occupied by SISJAC.
Funds	This is a grant making Trust with no direct activities, all distributable
	income being donated to the UEA for the purposes specified above.
	Therefore there are no specific activities to be reported on by the
	Trustees.
	The income of the year, all derived from stock exchange investments
	and cash placed on deposit was £283,811.
	The following grants were made out of the income of the Trust for the
	year ended 31 July 2021: £275,494.
	The net incoming resources for the year of the Unrestricted Fund after
	making these grants were £1,037. The balance of the Unrestricted
	Fund at 31 July 2020 was £31,461.
	The University and External Trustees met twice during the year to
	consider the allocation of available income. The External Trustees had
	two further meetings with Cazenove Capital Management. The Trustees
	receive an annual report from the UEA on the application of funds paid
	to the UEA. The UEA accounts for the activities funded from the
	income made over to it by the Trustees within the scope of its Annual
	Report and Accounts.
Investment policy	The Trustees have wide powers of investment. The objective of the
	Trustees is to maintain a level of investment income over time that
	keeps pace with inflation.
	The Trust's permanent endowment funds are invested to generate
	income and provide long-term capital growth in line with relevant
	indices. The Trustees regularly meet the investment managers to
	discuss strategy and review performance. In the year under review,
	Trustees maintained a defensive investment strategy.

4

THE SAINSBURY INSTITUTE FOR THE STUDY OF JAPANESE ARTS AND CULTURES

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 JULY 2021

Investment performance	During the financial year the Trust’s investment portfolio has been
	subject to unprecedented conditions arising from the Covid-19
	pandemic. Global economic confidence has plunged, and equity and
	financial markets have encountered large falls, extreme volatility and
	rapidly changing conditions across the major markets. As a
	consequence higher levels of investment income are increasingly
	difficult to find. The market value of investments has increased by
	10% compared to 2020, yet investment income has decreased by
	9% compared with the previous financial year.
	The charity does not raise funds from the public.
Future Plans	The charity expects to continue to distribute grants in the foreseeable
	future.
Going Concern	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. There are no material uncertainties about the charity's ability to
	continue.
Directors	The directors of HON & V Trustee Ltd are: Mr D Flynn, Ms G Harris,
	Ms H Johnston, Miss J S Portrait.

5

THE SAINSBURY INSTITUTE FOR THE STUDY OF JAPANESE ARTS AND CULTURES

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 JULY 2021

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 the 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 incoming resources for the period. In preparing these financial statements, the Trustees are required to:

• select suitable accounting polices and apply them consistently;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue to operate.

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 and enable them to ensure that the financial statements comply with the Charities Act 2011. 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 10 November 2021 and signed on their behalf by

Mr P Hesketh

Trustees

Professor D J Richardson

6

INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE SAINSBURY INSTITUTE FOR THE STUDY OF JAPANESE ARTS AND CULTURES

FOR THE YEAR ENDED 31 JULY 2021

Opinion

We have audited the financial statements of the Sainsbury Institute for the Study of Japanese Arts and Cultures for the year ended 31 July 2021 which comprise the Statement of Financial Activities, the Balance Sheet and the Statement of Cash Flows and notes to the financial statements, including a summary of 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:

• give a true and fair view of the state of the charity’s affairs as at 31 July 2021 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities Act 2011.

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. 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.

7

INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE SAINSBURY INSTITUTE FOR THE STUDY OF JAPANESE ARTS AND CULTURES

FOR THE YEAR ENDED 31 JULY 2021

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 require us to report to you if, in our opinion:

• the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or

• sufficient accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records and returns; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 6, 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 Act 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 non-compliance 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.

8

INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE SAINSBURY INSTITUTE FOR THE STUDY OF JAPANESE ARTS AND CULTURES

FOR THE YEAR ENDED 31 JULY 2021

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.

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 nondetection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

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

3 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.

9

THE SAINSBURY INSTITUTE FOR THE STUDY OF JAPANESE ARTS AND CULTURES

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 JULY 2021

Notes £ Income and endowments from Investment income 7 283,811 Total income and endowments 283,811 Expenditure on Raising funds 8.1 - Charitable activities 8.2 275,494 Other costs 8.3 7,280 Total expenditure 282,774 Net income/(expenditure) from operations before transfers and investment gains 1,037 Gains/(losses) on investments 3.1 - Net income and capital inflow 1,037 Total funds brought forward 30,424 Balance carried forward 10 31,461 Unrestricted Funds	Notes £ Income and endowments from Investment income 7 283,811 Total income and endowments 283,811 Expenditure on Raising funds 8.1 - Charitable activities 8.2 275,494 Other costs 8.3 7,280 Total expenditure 282,774 Net income/(expenditure) from operations before transfers and investment gains 1,037 Gains/(losses) on investments 3.1 - Net income and capital inflow 1,037 Total funds brought forward 30,424 Balance carried forward 10 31,461 Unrestricted Funds	£ £ - - 2021 Restricted Funds Permanent Endowment	£ £ - - 2021 Restricted Funds Permanent Endowment	2020 £ £ 283,811 314,858 Total Total Funds
	283,811	-	-	283,811 314,858
	- 275,494 7,280	- - -	30,462 - 5,808	30,462 30,806 275,494 320,725 13,088 13,170
	282,774	-	36,270	319,044 364,701
	1,037 -	- -	(36,270) 860,331	(35,233) (49,843) 860,331_(1,136,442)_
	1,037 30,424	- 21,990	824,061 7,961,687	825,098_(1,186,285) 8,014,101 _9,200,386
	31,461	21,990	8,785,748	8,839,199 8,014,101

The notes on pages 13 to 21 form part of these financial statements.

10

THE SAINSBURY INSTITUTE FOR THE STUDY OF JAPANESE ARTS AND CULTURES

BALANCE SHEET

AS AT 31 JULY 2021

Fixed assets Quoted stocks and shares Total fixed assets Current assets Debtors and prepayments Cash at bank and in hand Total current assets Creditors: amounts falling due within one year Net current assets Net assets Funds of the charity:- Unrestricted Funds Restricted Funds Endowment Funds 5 3 4 Notes 10 10 10	2021 £ 8,812,594 8,812,594 14,540 22,920 37,460 (10,855) 26,605 8,839,199 31,461 21,990 8,785,748 8,839,199	2020 £ 7,988,532
		7,988,532
		8,827 25,547
		34,374
		(8,805)
		25,569
		8,014,101
		30,424 21,990 7,961,687
		8,014,101

The notes on pages 13 to 21 form part of these financial statements.

Approved by the Board and signed on its behalf by

) ) Mr P Hesketh ) Trustees 10 November 2021 ) ) Professor D J Richardson )

11

THE SAINSBURY INSTITUTE FOR THE STUDY OF JAPANESE ARTS AND CULTURES

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 JULY 2021

Notes Cashflows from operating activities: Net cash provided by (used in) operating activities 9 Cash flows from investing activities: Dividends, interest and rents from investments Proceeds from sale of investments 3.1 Purchase of investments 3.1 Net cash provided by investing activities Change in cash and cash equivalents in the reporting period Analysis of cash and cash equivalents UK cash held as part of investment portfolio 3.1 Cash at bank and in hand The notes on pages 13 to 21 form part of these financial statements. Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period	2021 Total Funds £ (322,707)	2020 Restated Total Funds £ (378,122)
	283,811 379,200 (612,730)	316,892 1,048,037 (548,257)
	50,281	816,672
	(272,426)	438,550
	585,702	147,152
	313,276	585,702
	290,356 22,920	560,155 25,547
	313,276	585,702

12

THE SAINSBURY INSTITUTE FOR THE STUDY OF JAPANESE ARTS AND CULTURES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2021

1 Basis of Preparation

1.1 Basis of Accounting

These financial statements have been prepared in accordance with the Charities SORP (FRS 102) applicable to charities preparing their accounts in accordance with the Financial Reporting Standards 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 accounts (financial statements) have been prepared to give a "true and fair" view and have departed from the charities (Accounts and Reports) Regulations only to the extent required to provide a "true and fair view".

1.2 Fund accounting

The charity has a single permanent endowment fund, a restricted fund and an unrestricted fund.

1.3 Going Concern

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. There are no material uncertainties about the charity's ability to continue.

The effect of the Coronavirus pandemic has been to increase the value of the investment portfolio by approximately 11% compared to the end of the 2020 financial year, and dividend income receivable by the trust is very likely to be substantially lower going forward. Nevertheless the endowment assets of the Trust remain significant, and these will continue to return income which the Trust will continue to pay out to its beneficiary in accordance with the provisions of the Trust Deed.

1.4 Public Benefit

The Trust is a public benefit entity.

2 Accounting Policies

• 2.1 Incoming resources are included in the Statement of Financial Activities (SoFA) when:

• the charity becomes entitled to the resources;

• the trustees are virtually certain they will receive the resources; and

• the monetary value can be measured with sufficient reliability.

13

THE SAINSBURY INSTITUTE FOR THE STUDY OF JAPANESE ARTS AND CULTURES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2021

• 2.2 Where incoming resources have related expenditure, the incoming resources and related expenditure are reported gross in the SoFA.

• 2.3 Grants and donations are only included in the SoFA when the charity has unconditional entitlement to the resources.

• 2.4 Incoming resources from tax reclaims are included in the SoFA at the same time as the income to which they relate.

• 2.5 Investment income is included in the accounts when receivable.

• 2.6 Investment gains and losses include any gain or loss on the sale of investments and any gain or loss resulting from revaluing the investments to market value at the end of the year.

• 2.7 Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources.

• 2.8 Governance costs include the cost of the preparation and examination of statutory accounts, the cost of trustee meetings and cost of any legal advice to the trustees on governance or constitutional matters.

• 2.9 Grants payable are payments made to third parties in the furtherance of the charitable objectives of the trust. The grants are accounted for where either the trustees have agreed to pay the grant without condition and the recipient has a reasonable expectation that they will receive a grant, or any condition attaching to the grant is outside the control of the trust.

• 2.10 Investments quoted on a recognised stock exchange are valued at market value at the year end.

• 2.11 The trust is an exempt charity within the meaning of Section 519 of the Income Tax Act, 2007. Accordingly, it is potentially exempt from taxation in respect of income or capital gains received within categories covered by Section 256 of the Taxation of Chargeable Gains Act, 1992 to the extent that such income or gains are applied to exclusively charitable purposes.

The trust receives no exemption in respect of Value Added Tax (VAT) and is not VAT registered.

• 2.12 Restricted funds are those where donors have placed restrictions on the use of the funds.

• 2.13 Endowed funds are permanent endowments where the donor has specified that the capital of the gift cannot be expended and that only the income arising from the capital may be used for the purpose named by the donor. None of these funds are available to meet the general costs of the Trust. Investment management charges and legal fees are charged to the capital of the endowed funds.

14

THE SAINSBURY INSTITUTE FOR THE STUDY OF JAPANESE ARTS AND CULTURES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2021

2.14	Sources of estimation uncertainty that have a significant effect on the amounts recognised	Sources of estimation uncertainty that have a significant effect on the amounts recognised	Sources of estimation uncertainty that have a significant effect on the amounts recognised
	in the financial statements are described in the accounting policies. No specific accounting
	judgements and uncertainties have been identified for the current year.
2.15	During the year, the classification of cash held by the investment managers has been
	reconsidered, and cash held for reinvestment in the portfolio has been included		within
	fixed asset investments only as it is a long term investment. The	other cash that is available
	on demand within the income accounts, are now being included within current assets.
	The comparative figures have also been restated.
3	Investment Assets
		2021	2020
		£	£
3.1	Quoted Investments
	Market value brought forward	7,428,377	9,064,599
	Additions	612,730	548,257
	Disposals	(379,200)	(1,048,037)
	Net investment gains/(losses)	860,331	(1,136,442)
	Market value of investments before Capital account	8,522,238	7,428,377
	UK cash held as part of investment portfolio	290,356	560,155
	Market value at year end	8,812,594	7,988,532
3.2	Historical Cost
	At 31 July 2021	6,490,751
	At 1 August 2020		6,449,896

15

THE SAINSBURY INSTITUTE FOR THE STUDY OF JAPANESE ARTS AND CULTURES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2021

3.3 The following material investment holdings represented more than 5% of the the charity's total investments:- 2021 £ Trojan Income Fund 445,636 Vanguard S&P 500 UCITS ETF 488,201 iShares PLC - S&P 500 Index 734,270 1,668,107 4 Debtors and Prepayments 2021 £ Accrued income 14,113 Prepayments 427 14,540 5 Creditors: Amounts Falling Due Within One Year 2021 £ Professional fees 8,500 Investment management charges 2,355 10,855	total value of 2020 £ 407,680 - 573,180
	1,130,135
	2020 £ 8,400 427
	8,827
	2020 £ 6,450 2,355
	8,805

16

THE SAINSBURY INSTITUTE FOR THE STUDY OF JAPANESE ARTS AND CULTURES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2021

6 Transactions With Related Parties 6.1 The Trustees are considered the Key Management Personnel of the charity. 6.2 No Trustee is or has been entitled to any fee or salary ( - £Nil). 6.3 No Trustee has been reimbursed with any out-of-pocket expenses ( - £Nil). 6.4 There were no transactions with Trustees or connected persons ( - £Nil). 7 Analysis of Incoming Resources 2021 £ 7.1 Investment Income Income receivable on quoted investments 283,811 283,811 8 Analysis of Resources Expended 2021 £ 8.1 Investment Management Fees Stockbrokers' management fee 30,462 30,462 2021 £ 8.2 Charitable Activities Donations to University of East Anglia 275,494 275,494	2020 £ 314,858
	314,858
	2020 £ 30,806
	30,806
	2020 £ 320,725
	320,725

17

THE SAINSBURY INSTITUTE FOR THE STUDY OF JAPANESE ARTS AND CULTURES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2021

		2021	2020
		£	£
8.3	Other Costs
	Legal fees	5,808	8,581
	Audit fees	6,000	3,950
	Insurances	1,280	639
		13,088	13,170
	Legal fees are for services provided by Portait Solicitors, a firm in which Miss J S Portrait
	and Mr D Flynn are partners. Amounts due at year end in respect of professional fees from
	the firm are disclosed in Note 5.
8.4	The Fund employed no staff during the year ended 31 July 2021	(2020 - none).
9	Reconciliation of Cash Flows From Operating Activities
		2021	2020
		£	£
	Net expenditure for the year (as per Statement
	of Financial Activities)	(35,233)	(49,843)
	Adjustments for:
	Dividends, interest and rents from investments	(283,811)	(314,858)
	(Increase) in prepayments	(5,713)	-
	Increase/(Decrease) in creditors	2,050	(13,421)
	Net cash used in operating activities	(322,707)	(378,122)

18

THE SAINSBURY INSTITUTE FOR THE STUDY OF JAPANESE ARTS AND CULTURES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2021

10 Analysis of Fund Movements

10.1 a b c 10.2 b c Permanent Endowment Unrestricted Funds Restricted Fund a Unrestricted Funds Restricted Fund Permanent Endowment	21,990 30,424 Balances Brought Forward, 01.08.2020 £ 7,961,687	£ Income 283,811 - -	Investments Gain/(Loss) £ - - 860,331 (36,270) Expenditure £ - (282,774)	Funds Carried Forward, 31.07.2021 £ 31,461 21,990 8,785,748
	8,014,101	283,811	860,331 (319,044)	8,839,199
	40,880 9,137,516 Balances Brought Forward, 01.08.2019 £ 21,990	£ Income 314,858 - -	Investments Gain/(Loss) £ - - (1,136,442) £ (39,387) Expenditure (325,314) -	Funds Carried Forward, 31.07.2020 £ 30,424 21,990 7,961,687
	9,200,386	314,858	(1,136,442) (364,701)	8,014,101

• 10.3 The permanent endowment represents the value of assets held as investments arising from the original assets settled by the Trustees of the Robert and Lisa Sainsbury Charitable Trust on 16 December 1998. The income arising on these assets is available for use in accordance with the trust's objects and is included in unrestricted income.

• 10.4 The restricted fund as at 31 July 2021 amounted to £21,990 for the refurbishment of premises in Norwich owned by Dean and Chapter of the Cathedral of Norwich to be occupied by SISJAC.

19

THE SAINSBURY INSTITUTE FOR THE STUDY OF JAPANESE ARTS AND CULTURES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2021

11 Statement of Financial Activities: Other costs Total expenditure Balance carried forward Total funds brought forward Net income and capital inflow Raising funds Expenditure on Charitable activities Income and endowments from Total income and endowments Investment income Net income from operations before transfers and investment gains Losses on investment	year ended 31 July 2020 - - £ Restricted Funds (10,456) 30,424 40,880 (10,456) Unrestricted Funds 314,858 314,858 - - - 320,725 4,589 325,314 £ 21,990 21,990 - - - - - -	year ended 31 July 2020 - - £ Restricted Funds (10,456) 30,424 40,880 (10,456) Unrestricted Funds 314,858 314,858 - - - 320,725 4,589 325,314 £ 21,990 21,990 - - - - - -	£ - Permanent Endowment	£ 314,858 Total
	314,858	-	-	314,858
	- 320,725 4,589	- - -	30,806 - 8,581	30,806 320,725 13,170
	325,314	-	39,387	364,701
	(10,456) -	- -	(39,387) (1,136,442)	(49,843) (1,136,442)
	40,880 (10,456)	- 21,990	(1,175,829) 9,137,516	(1,186,285) 9,200,386
	30,424	21,990	7,961,687	8,014,101

20

THE SAINSBURY INSTITUTE FOR THE STUDY OF JAPANESE ARTS AND CULTURES

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2021

12 Analysis of Net Assets Between Funds

12.1 Fixed assets/ investments Current assets Debtors and prepayments Cash at bank and in hand Current (liabilities) 12.2 Fixed assets/ investments Current assets Debtors and prepayments Cash at bank and in hand Current (liabilities)	14,540 22,920 Unrestricted Funds (5,999) £ -	£ 8,790,604 - - (4,856) 2021 - Restricted Funds 21,990 Permanent Endowment - - £	£ 8,812,594 14,540 22,920 (10,855) Total
	31,461	8,785,748 21,990	8,839,199
	(3,950) Unrestricted Funds 25,547 £ - 8,827	£ 7,966,542 - - (4,855) Restricted Funds - Permanent Endowment 2020 - £ 21,990 -	£ 7,988,532 8,827 25,547 (8,805) Total
	30,424	7,961,687 21,990	8,014,101

13 Financial Instruments

At year end, the Fund held financial assets at fair value through income or expenditure of £8,522,238 (2020: £7,428,377) and financial liabilities at amortised cost of £10,855 (2020: £8,805). Total interest charged in respect of financial assets held at amortised cost totalled £Nil (2020: £Nil). Income in respect of assets held at fair value totalled £283,811 (2020: £314,858) and expenditure incurred was £30,462 (2020: £30,806). Gains in the period were £860,331 (2020: losses of £1,136,442).

21