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2022-04-05-accounts

DocuSign Envelope ID: EC293B6A-C3F1-4122-86E0-A1B37C549875DocuSign Envelope ID: DEB75CC5-477A-467E-869D-6BC59071BCC6

REGISTERED CHARITY NUMBER: 1079688

Report of the Trustees and

Audited Financial Statements for the Year Ended 5 April 2022

for

The John Armitage Charitable Trust

Sampson West Statutory Auditor Chartered Accountants Second Floor 34 Lime Street London EC3M 7AT

DocuSign Envelope ID: EC293B6A-C3F1-4122-86E0-A1B37C549875DocuSign Envelope ID: DEB75CC5-477A-467E-869D-6BC59071BCC6

The John Armitage Charitable Trust

Contents of the Financial Statements for the Year Ended 5 April 2022

Page
Report of the Trustees 1 to 5
Report of the Independent Auditors 6 to 8
Statement of Financial Activities 9
Statement of Financial Position 10
Statement of Cash Flows 11
Notes to the Financial Statements 12 to 23

DocuSign Envelope ID: EC293B6A-C3F1-4122-86E0-A1B37C549875DocuSign Envelope ID: DEB75CC5-477A-467E-869D-6BC59071BCC6

The John Armitage Charitable Trust

Report of the Trustees for the Year Ended 5 April 2022

The trustees present their report with the financial statements of the charity for the year ended 5 April 2022. The trustees have adopted the provisions of 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) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and activities for the public benefit

The Charity's objects are such exclusively charitable objects and purposes for the public benefit throughout England and Wales as the trustees may in their discretion think fit.

The Charity furthers its charitable purposes for the benefit of the public by making grants to organisations or groups which undertake activities which are charitable within the meaning of the laws of England and Wales and which fall within the Charity's objects. This may include support to registered charities, exempt or excepted charities and other non-profit making bodies.

The trustees have due regard to the Charity Commission's guidance as to operation of the public benefit requirement when exercising powers or duties to which the guidance is relevant and in their opinion the charity's activities are wholly for the benefit of the public.

The trustees have power to expend capital and income from the Expendable Endowment Fund but while furthering the objects of the Charity the trustees have regard to ensuring that the Expendable Endowment Fund is maintained.

The guiding principle of the Charity is to help people to help themselves. The focus areas are:

  1. disadvantaged children and youth support, including parenting support;

  2. education;

  3. medical care;

  4. arts and culture;

  5. prisoners and young offenders and

  6. religious organisations.

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The John Armitage Charitable Trust

Report of the Trustees for the Year Ended 5 April 2022

OBJECTIVES AND ACTIVITIES Grantmaking

The Charity has established its grant making policy so as to achieve its objects and donee organisations are selected in accordance with this policy by the trustees.

The trustees do not consider unsolicited requests for funding and have appointed an advisor to review the current grants awarded and to identify and assess additional charities to award grants to. The trustees have implemented a more strategic approach to their grant making policy, focusing on disadvantaged children and youth support, education, medical care and research, arts and culture, prisoners and young offenders and religion.

The Charity's distribution policy in relation to new recipients is to make 3-yearly grants to charitable organisations selected periodically by the trustees. It is anticipated that the majority of grants will be between £30,000 and £40,000 per annum. In certain circumstances grants may be made for a different timescale (including one-off grants) or for a lower or greater amount, as agreed by the trustees. Grants promised to be made for each of 3 successive years are only payable in years 2 & 3 subject to the satisfactory completion of the first and second year's conditions respectively.

The Charity may also provide long-term or repeat funding to existing grant recipients at the discretion of the trustees subject to on-going monitoring and review. The Charity does not generally provide funding for long term capital projects, although exceptionally the trustees may make one off capital grants.

The Trustees carry out appropriate due diligence checks to ensure that funds are used only for charitable activities which further the purposes of the Charity and that proposed grants do not expose the Charity to undue risks. The trustees retain an advisor on an annual basis to assist with the on-going monitoring and vetting of potential grant recipients.

The trustees adopt a risk rated approach to due diligence. Risk factors will include:

  1. the size and duration of the proposed grant;

  2. the legal status of the proposed recipient;

  3. 3 the geographical location in which the grant will be applied;

  4. 4 how easily the trustees can verify how the Charity's funds are being spent;

  5. 5 the nature of the activity to be funded by the proposed grant and

  6. 6 the public profile of the proposed project and/or recipient and the likely media and/or local or public interest.

Where grant recipients are supported for a significant period of time, grants are monitored annually to determine whether any additional due diligence should be undertaken on a change of circumstances that might impact the recipient.

Following a review and recommendation process led by the advisor, the trustees consider whether grants should be made subject to a grant offer letter and the standard terms and conditions or if special conditions should be imposed.

ACHIEVEMENT AND PERFORMANCE Charitable activities

During the year the Charity made grants to charitable causes totalling £7,240,640 (2021 - £3,958,360) as set out in note 7 to these financial statements. The trustees are satisfied that the nature and scope of grants made fully reflect the purposes of the Charity and that the objectives for which it was created continue to be achieved.

The trustees, with the assistance of the advisor, have taken steps to monitor the use of the grants made and verified that they have been applied for the purposes that were agreed. The trustees and advisor have visited grant-funded activities and interviewed individuals involved in running those activities.

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The John Armitage Charitable Trust

Report of the Trustees for the Year Ended 5 April 2022

ACHIEVEMENT AND PERFORMANCE

Investment performance

The year under review was a good one for investments both globally and in the UK. The market values of investments (including cash balances) recorded in the financial statements increased by £17,725,042 (2021 - £40,958,558) during the year, after the addition of a further donation of £16,289,424 (2021 - £12,093,715) by the settlor and investment disposals are taken into account.

The realised and unrealised net investment gains for the year are £11,913,128 (2021 - £33,040,403). There is accordingly a positive return of approximately 7.94% (2021 - 30.3%) of the opening market value of the Charity's portfolio and a positive return of approximately 7.16% (2021 - 27.3%) of the opening market value of the Charity's portfolio plus the further donation of £16,289,424 (2021 - £12,093,715). The Trustees consider this investment performance to have been remarkable, as the UK economy bounced-back from the downturn caused by the COVID-19 pandemic.

FINANCIAL REVIEW

Principal funding sources

The Charity's work is entirely reliant on income and investment returns from its Expendable Endowment Fund which is invested on a total return basis. The value of the Expendable Endowment Fund at 5 April 2022 was £170,652,086, an increase of £20,553,845 over its £150,098,241 value as at 5 April 2021. This represents a 13.7% (2021 - 37%) increase after all expenses and transfer to the unrestricted fund.

The trustees transferred £7,443,652 (2021 - £4,394,827) from the unapplied return of the Expendable Endowment Fund to support its grant making charitable activities.

Investment policy and objectives

The trustees have a wide power of investment conferred on them by clause 10.2 of the trust deed. The trustees also have the general power of investment conferred upon them by the Trustee Act 2000, which permits them to invest trust assets as if they were absolutely entitled to the assets. In exercise of these powers the trustees operate a total return approach to the investment of the Expendable Endowment Fund. There is no specific income requirement in relation to the Portfolio.

  1. When determining the amount of unapplied total return on the Expendable Endowment Fund to transfer to the Unrestricted Fund the trustees have considered the amount of income required to maintain the current level of charitable activity and the likely needs of future beneficiaries; and

  2. When reaching their decision as to the unapplied total return to transfer to the Unrestricted Fund, the trustees have had regard to the market outlook, investment trends and the prospect for future capital growth and loss.

The Charity's Portfolio is invested on a long-term basis with no particular regard to social, environmental or ethical considerations. It is anticipated that the Charity will continue after the settlor's lifetime. The trustees' principal objective is to invest for growth in real terms measured in sterling, whilst ensuring sufficient liquidity to maintain distributions of around 3-4% per annum and to fund the administrative costs of running the Charity. The distribution rate is set by reference to the trustees' wish to be able to maintain levels of donations should the Expendable Endowment Fund fall by up to 30% in value. The overall target return is to achieve net growth per annum in sterling in excess of the rate of UK inflation as measured by the Consumer Price Index (CPI).

Reserves policy

It is the policy of the trustees to recognise an unrestricted fund and an unrestricted Expendable Endowment Fund. If resources expended exceed income of the unrestricted fund a transfer is made from the Expendable Endowment fund which is expendable at the discretion of the trustees.The trustees do not, therefore, believe that the Charity needs to hold more significant reserves.

FUTURE PLANS

The trust will continue to make donations to charitable causes at the discretion of the trustees in accordance with the Charity's grant making policy. There are no specific plans to support any one charity or organisation. Reports from the appointed advisers as to the results of grants made to beneficiaries inform and influence the trustees with respect to future plans and decisions about allocating resources to their best effect.

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The John Armitage Charitable Trust

Report of the Trustees for the Year Ended 5 April 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The trust is a registered charity, number 1079688, and is constituted under a Trust Deed dated 24 August 1999. The trust was established by an initial gift from John Armitage. Since his initial gift John Armitage has made further substantial gifts to the charity. The Charity does not fundraise but seeks to continue the charitable work desired by the trustees through the careful stewardship of its existing resources.

Organisational structure

The trustees who have served during the year and since the year end are set out below. Trustees are elected in accordance with the trust deed. There are no personnel employed by the Charity.

Decision making

Decisions are made by the trustees who meet generally three times a year (and must meet at least annually). Investment decisions are made by a sub-committee of the trustees. Grant making decisions are made by the trustees in accordance with the Charity's grant making policy and grants are made to beneficiaries either brought to their attention by the appointed advisor or subsequently researched and then approved by the appointed advisor.

Induction and training of new trustees

Any new trustee will receive a comprehensive induction to the Charity and will receive materials to allow them to understand the charitable purposes, the financial position and current issues of the Charity.

The trustees are kept up to date with all matters relating to charities generally by their professional advisers.

Related parties

The only related parties are the trustees. Details of the related party transactions are given in the notes to the accounts.

Risk management

The major risks to which the trust is exposed, as identified by the trustees, have been reviewed and procedures have been established to manage those risks.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number

1079688

Principal address

Second Floor 34 Lime Street London EC3M 7AT

Trustees

J C Armitage W Francklin Mrs C M Armitage Mrs C Francklin R A MacInnes

Auditors

Sampson West Statutory Auditor Chartered Accountants Second Floor 34 Lime Street London EC3M 7AT

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The John Armitage Charitable Trust

Report of the Trustees for the Year Ended 5 April 2022

REFERENCE AND ADMINISTRATIVE DETAILS Bankers

Coutts & Co 440 Strand London WC2R 0QS

Solicitors

Macfarlanes 10 Norwich Street London EC4A 1BD

Appointed Advisors

New Philanthropy Capital 185 Park Street London SE1 9BL

The name of the Charity is The John Armitage Charitable Trust and no other name is used.

Registered as a charity with The Charity Commission for England and Wales with Charity Number 1079688.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 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.

01 February 2023 | 4:12 PM GMT

Approved by order of the board of trustees on ............................................. and signed on its behalf by:

........................................................................ J C Armitage - Trustee

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Report of the Independent Auditors to the Trustees of The John Armitage Charitable Trust

Opinion

We have audited the financial statements of The John Armitage Charitable Trust (the 'charity') for the year ended 5 April 2022 which comprise the Statement of Financial Activities, the Statement of Financial Position, 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 (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 Auditors' 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 trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating 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 Report of the Independent Auditors 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.

In connection with our audit of the financial statements, 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 where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

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Report of the Independent Auditors to the Trustees of The John Armitage Charitable Trust

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which 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.

Our responsibilities for the audit of the financial statements

We have been appointed as auditors 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 a Report of the Independent Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant are United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Principles), the Charities SORP (FRS102) effective 1 January 2015 and the Charities Act 2011. We assessed the risk of non-compliance with such laws and regulations by discussion within the audit team and based on the results of our risk assessment, we designed our audit procedures for each section of the audit to identify any such non-compliance.

We assessed the risks of material misstatement in respect of irregularities, including fraud, by correspondence with the Trustees, consideration of the procedures in place to detect irregularities, including fraud, and review of the Trustee meeting minutes. We discussed these risks within the audit team, concluding that there is no motivation and little opportunity for internal fraud, but identified and targeted any higher risk areas with specific audit testing. We consider the greatest risk of material misstatement due to irregularities, including fraud, to be the payments to beneficiaries. Our audit procedures to respond to these risks include beneficiary circularisation, beneficiary validation and review of Trustee meeting minutes.

The audit engagement partner considers the audit team collectively had the appropriate competence and capabilities to recognise non-compliance with laws and regulations and identify fraud.

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.

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 Report of the Independent Auditors.

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Report of the Independent Auditors to the Trustees of The John Armitage Charitable Trust

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 auditors' 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.

Sampson West Statutory Auditor Chartered Accountants Second Floor 34 Lime Street London EC3M 7AT 02 February 2023 | 2:41 PM GMT Date: .............................................

Sampson West is eligible to act as an auditor in accordance with section 1212 of the Companies Act 2006

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The John Armitage Charitable Trust

Statement of Financial Activities for the Year Ended 5 April 2022

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
Investment income
4
Total
EXPENDITURE ON
Investment management
5
Charitable activities
6
Grants to institutions
Other 8
Total
Net gains on investments
NET INCOME/(EXPENDITURE)
Transfers between funds
18
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
Unrestricted
fund
£
-
-
-
-
7,357,810
85,842
7,443,652
-
(7,443,652)
7,443,652
-
-
-

Endowment
fund
£
16,289,424
1,328
16,290,752
206,383
-
-
206,383
11,913,128
27,997,497
(7,443,652)
20,553,845
150,098,241
170,652,086
5.4.22

Total
funds
£
16,289,424
1,328
16,290,752
206,383
7,357,810
85,842
7,650,035
11,913,128
20,553,845
-
20,553,845
150,098,241
170,652,086
5.4.21
Total
funds
£
12,093,715
55
12,093,770
160,686
4,047,826
347,001
4,555,513
33,040,403
40,578,660
-
40,578,660
109,519,581
150,098,241

The notes form part of these financial statements

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The John Armitage Charitable Trust

Statement of Financial Position
5 April 2022
Notes
FIXED ASSETS
Investments
13
CURRENT ASSETS
Debtors
14
Prepayments and accrued income
Cash at bank
CREDITORS
Amounts falling due within one year
15
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
ACCRUALS AND DEFERRED INCOME
16
NET ASSETS
FUNDS
18
Endowment funds
TOTAL FUNDS
5.4.22
£
167,773,741
2,499,528
68
469,331
2,968,927
-
2,968,927
170,742,668
(90,582)
170,652,086
170,652,086
170,652,086
5.4.21
£
150,060,899
-
52
132,207
132,259
(27,439)
104,820
150,165,719
(67,478)
150,098,241
150,098,241
150,098,241

The financial statements were approved by the Board of Trustees and authorised for issue on 01 February 2023 | 4:12 PM GMT ............................................. and were signed on its behalf by:

.............................................

J C Armitage - Trustee

The notes form part of these financial statements

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The John Armitage Charitable Trust

Statement of Cash Flows Statement of Cash Flows
for the Year Ended 5 April 2022
5.4.22 5.4.21
Notes £ £
Cash flows from operating activities
Cash generated from operations 22 (7,449,382) (4,349,267)
Net cash used in operating activities (7,449,382) (4,349,267)
Cash flows from investing activities
Purchase of fixed asset investments (5,180,748) (47,998,273)
Sale of fixed asset investments 13,170,929 52,173,416
Interest received 1,380 55
Net cash provided by investing activities 7,991,561 4,175,198
Cash flows from financing activities
Income attributable to endowment 1,328 -
Expenditure attributable to endowment (206,383) (160,686)
Net cash used in financing activities (205,055) (160,686)
Change in cash and cash equivalents in
the reporting period 337,124 (334,755)
Cash and cash equivalents at the
beginning of the reporting period 132,207 466,962
Cash and cash equivalents at the end of
the reporting period 469,331 132,207

The notes form part of these financial statements

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The John Armitage Charitable Trust

Notes to the Financial Statements for the Year Ended 5 April 2022

1. ANALYSIS OF AND MOVEMENT IN THE EXPENDABLE ENDOWMENT FUND

Expendable Endowment Fund:
Gift component of Fund
Unapplied total return
As at 6 April 2021
Year ended 5 April 2022
Movement in unapplied total return and
endowment:
Donation received
Investment Return: dividends and interest
Investment Return: realised and unrealised gains
Investment Management costs
Total
Unapplied total return allocated to income
Net Movement in the year
Expendable Endowment at 5 April 2022
Expendable
Endowment
98,214,971
-
98,214,971
16,289,424
-
-
-
16,289,424
-
16,289,424
114,504,395
Unapplied
Total Return
-
51,883,269
51,883,269
-
1,328
11,913,128
(206,383)
11,708,073
(7,443,652)
4,264,421
56,147,690
Total
98,214,971
51,883,269
150,098,241
16,289,424
1,328
11,913,128
(206,383)
27,997,497
(7,443,652)
20,553,845
170,652,085

2. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements 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) effective 1 January 2015 and the Charities Act 2011.

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

The trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern. The most significant aspect of the Charity that potentially affects its ability to continue is the carrying value of its investments which relates to investment returns and the performance of investment markets (see the investment policy and performance and risk management sections of the trustees' annual report for more information).

Income

All incoming resources are included on the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.

Cash donations received are recorded gross of taxation recoverable under the gift aid scheme.

Income arising from fixed asset investments held in the expendable endowment fund is credited as investment income to that fund.

Gifts of shares to the trust are treated as voluntary income of the endowment fund. Such shares are included at market value on the date of the gift.

continued...

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The John Armitage Charitable Trust

Notes to the Financial Statements - continued for the Year Ended 5 April 2022

2. ACCOUNTING POLICIES - continued

Expenditure

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category.

The cost of managing investments is charged against the expendable endowment fund. Any costs associated with the sale or purchase of investments are accounted for as part of the sale or purchase price of the investments.

Management and administration expenses comprise costs incurred for the running of the charity itself as an entity. Irrecoverable VAT is charged to the Statement of Financial Activities as incurred.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Allocation and apportionment of costs

Costs which are readily identified as specific to a particular activity are allocated accordingly.

Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Taxation

The charity is exempt from tax on its charitable activities.

Fund accounting

The Expendable Endowment Fund is invested on a total return basis as permitted by the Trust Deed.

The power of total return permits the trustees to invest the Expendable Endowment Fund to maximise total return and to apply an appropriate portion of the unapplied total return to income each year by transfer to the unrestricted fund. Until the power is exercised to transfer a portion of unapplied total return to income, it remains invested in the Expendable Endowment Fund.

The power allows the trustees to decide each year how much of the unapplied total return is to be transferred to the unrestricted fund and so available to meet expenditure. Having considered their obligations under the duty of even-handedness, the trustees made a transfer of £7,443,652 (2021 - £4,394,827) (see note 17) unapplied total return to the unrestricted fund. In making this decision the trustees have taken account of the return on investment for the year, the sustainability of the Expendable Endowment Fund and the income needs of the Charity.

The unrestricted fund can be used in accordance with the charitable objectives at the discretion of the trustees.

Realised and unrealised capital gains or losses arising on investments are recognised as additions or deductions from the respective fund in which the investment is held.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result except in the case of currency gains or losses which arise from the market valuation of fixed asset investments where the effective currency translation gain or loss is included within total gains or losses on investment assets.

Fixed asset investments

The Trust invests in certain private equity funds, including hedged funds, which are not traded. Such funds are included at the market value of underlying investments at the balance sheet date which is calculated and provided by the fund service provider or the relevant fund manager.

Investments which are listed on a recognised stock exchange are included at the quoted closing mid-market value at the balance sheet date.

continued...

Page 13

DocuSign Envelope ID: EC293B6A-C3F1-4122-86E0-A1B37C549875DocuSign Envelope ID: DEB75CC5-477A-467E-869D-6BC59071BCC6

The John Armitage Charitable Trust

Notes to the Financial Statements - continued for the Year Ended 5 April 2022

2. ACCOUNTING POLICIES - continued

Fixed asset investments

Cash and cash equivalents that are held from time to time as part of the fixed asset investment portfolio are included as part of fixed asset investments at the balance sheet date.

Realised and unrealised gains or losses on investments are taken to the Expendable Endowment Fund in the Statement of Financial Activities. Foreign currency gains or losses which arise through the revaluation process are included within the realised and unrealised gains or losses on investments.

3. DONATIONS AND LEGACIES

DONATIONS AND LEGACIES
5.4.22 5.4.21
£ £
Donations 16,289,424 12,093,715

Donations received during the year amounted to £16,289,424 (2021 - £12,093,715) and consisted of fixed asset investments gifted to the trust at the market value at the date of the gift.

4.
INVESTMENT INCOME
Call Account Interest
5.
INVESTMENT MANAGEMENT
Investment management costs
Investment management
6.
CHARITABLE ACTIVITIES COSTS
Cost of grant making
Grants to institutions (see note 7)
5.4.22
£
1,328
1,328
5.4.22
£
206,383
5.4.22
£
117,170
7,240,640
7,357,810
5.4.21
£
55
55
5.4.21
£
160,686
5.4.21
£
89,466
3,958,360
4,047,826

continued...

Page 14

DocuSign Envelope ID: EC293B6A-C3F1-4122-86E0-A1B37C549875DocuSign Envelope ID: DEB75CC5-477A-467E-869D-6BC59071BCC6

The John Armitage Charitable Trust

Notes to the Financial Statements - continued for the Year Ended 5 April 2022

7. GRANTS PAYABLE

GRANTS PAYABLE
5.4.22 5.4.21
£ £
Grants to institutions 7,240,640 3,958,360

The Trustees have taken advantage of the exemption given by section 132(4) Charities Act 2011 not to disclose the names of grant recipients and the amounts of such grants. In the opinion of the trustees, no individual grant made during the year was material in the context of grantmaking. However, in accordance with the Charities SORP (FRS102), paragraphs 16.17-16.18, the following provides an understanding of the range of institutions the charity has supported.

The five largest donations made to institutions were as follows:

Pembroke College Cambridge £2,502,942
Harris Federation £330,000
Fight for Peace £150,000
The Forward Trust £120,000
Home Start Westminster £105,000

Grants were paid in line with trust policy at the discretion of the trustees. The total of grants payable to institutions during the year were for the following charitable causes:

5.4.22 5.4.21
£ £
Relief for the poor, handicapped and aged - 105,000
0 Beneficiaries
Maximum Grant -
Parenting support 657,000 368,000
10 Beneficiaries
Maximum Grant 105,000
Education 3,474,562 864,820
13 Beneficiaries
Maximum Grant 2,502,942
Support for former offenders 466,000 311,000
9 Beneficiaries
Maximum Grant 120,000
Medical research / medical care 321,000 327,500
9 Beneficiaries
Maximum Grant 100,000
Youth support 983,500 854,000
19 Beneficiaries
Maximum Grant 150,000
Religion 154,000 114,000
4 Beneficiaries
Maximum Grant 59,000
Museum + Arts 354,522 470,540
16 Beneficiaries
Maximum Grant 45,000
Other 830,056 543,500
24 Beneficiaries
Maximum Grant 60,000

Page 15

continued...

DocuSign Envelope ID: EC293B6A-C3F1-4122-86E0-A1B37C549875DocuSign Envelope ID: DEB75CC5-477A-467E-869D-6BC59071BCC6

The John Armitage Charitable Trust

Notes to the Financial Statements - continued for the Year Ended 5 April 2022

7. GRANTS PAYABLE - continued

7,240,640 7,240,640 3,958,360
8. SUPPORT COSTS
Exchange Governance
differences costs Totals
£ £ £
Other resources expended 19,395 66,447 85,842
Other resources expended
5.4.22
5.4.21
£
£
Exchange differences 19,395
214,823
Governance costs 66,447 132,178
85,842
347,001
Support costs, included in the above are as follows:
Governance costs
5.4.22
5.4.21
£
£
Auditors remuneration 18,557
19,454
Accountancy 9,303
15,406
Trust administration 17,922
31,696
Legal fees 20,118
65,354
Bank charges 165
236
Bank interest 382
-
66,447 132,178
Support costs, included in the above, are as follows:
Governance costs
Auditors' remuneration
Accountancy
Trust administration
Legal fees
Bank charges
Bank interest
5.4.22
Other
£
18,557
9,303
17,922
20,118
165
382
66,447
5.4.21
£
19,454
15,406
31,696
65,354
268
-
132,178

Page 16

continued...

DocuSign Envelope ID: EC293B6A-C3F1-4122-86E0-A1B37C549875DocuSign Envelope ID: DEB75CC5-477A-467E-869D-6BC59071BCC6

The John Armitage Charitable Trust

Notes to the Financial Statements - continued for the Year Ended 5 April 2022

9. AUDITORS' REMUNERATION

Statutory audit
Other financial services
Total auditors' remuneration
5.4.22
£
18,557
27,225
45,782
5.4.21
£
19,454
47,102
66,647

10. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 5 April 2022 nor for the year ended 5 April 2021.

Trustees' expenses

There were no trustees' expenses paid for the year ended 5 April 2022 nor for the year ended 5 April 2021.

11. STAFF COSTS

There were no staff costs for the year ended 5 April 2022, nor for the year ended 5 April 2021.

The average monthly number of employees during the year ended 5 April 2022 was Nil (2021 - Nil). No employees received emoluments in excess of £60,000.

12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations and legacies
Investment income
Total
EXPENDITURE ON
Investment management
Charitable activities
Grants to institutions
Other
Total
Net gains on investments
NET INCOME/(EXPENDITURE)
Transfers between funds
Net movement in funds
Unrestricted
fund
£
-
-
-
-
4,047,826
347,001
4,394,827
-
(4,394,827)
4,394,827
-

Endowment
fund
£
12,093,715
55
12,093,770
160,686
-
-
160,686
33,040,403
44,973,487
(4,394,827)
40,578,660

Total
funds
£
12,093,715
55
12,093,770
160,686
4,047,826
347,001
4,555,513
33,040,403
40,578,660
-
40,578,660

continued...

Page 17

DocuSign Envelope ID: EC293B6A-C3F1-4122-86E0-A1B37C549875DocuSign Envelope ID: DEB75CC5-477A-467E-869D-6BC59071BCC6

The John Armitage Charitable Trust

Notes to the Financial Statements - continued for the Year Ended 5 April 2022

12.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued
Unrestricted
Endowment
fund
fund
£
£
RECONCILIATION OF FUNDS
Total funds brought forward
-
109,519,581
TOTAL FUNDS CARRIED FORWARD
-
150,098,241
13.
FIXED ASSET INVESTMENTS
MARKET VALUE
At 6 April 2021
Additions
Disposals
Revaluations
At 5 April 2022
NET BOOK VALUE
At 5 April 2022
At 5 April 2021
Analysis of investments:
Unquoted assets:
Non-UK
12.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued
Unrestricted
Endowment
fund
fund
£
£
RECONCILIATION OF FUNDS
Total funds brought forward
-
109,519,581
TOTAL FUNDS CARRIED FORWARD
-
150,098,241
13.
FIXED ASSET INVESTMENTS
MARKET VALUE
At 6 April 2021
Additions
Disposals
Revaluations
At 5 April 2022
NET BOOK VALUE
At 5 April 2022
At 5 April 2021
Analysis of investments:
Unquoted assets:
Non-UK
12.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued
Unrestricted
Endowment
fund
fund
£
£
RECONCILIATION OF FUNDS
Total funds brought forward
-
109,519,581
TOTAL FUNDS CARRIED FORWARD
-
150,098,241
13.
FIXED ASSET INVESTMENTS
MARKET VALUE
At 6 April 2021
Additions
Disposals
Revaluations
At 5 April 2022
NET BOOK VALUE
At 5 April 2022
At 5 April 2021
Analysis of investments:
Unquoted assets:
Non-UK
12.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued
Unrestricted
Endowment
fund
fund
£
£
RECONCILIATION OF FUNDS
Total funds brought forward
-
109,519,581
TOTAL FUNDS CARRIED FORWARD
-
150,098,241
13.
FIXED ASSET INVESTMENTS
MARKET VALUE
At 6 April 2021
Additions
Disposals
Revaluations
At 5 April 2022
NET BOOK VALUE
At 5 April 2022
At 5 April 2021
Analysis of investments:
Unquoted assets:
Non-UK

Total
funds
£
109,519,581
150,098,241
Listed
investments
£
150,060,899
42,532,034
(36,732,320)
11,913,128
167,773,741
167,773,741
150,060,899
167,773,741
167,773,741

Unquoted investments comprise units held in collective investment schemes. The investments are held primarily to provide an investment return arising from an increase in market value rather than from income. The investments are sufficiently liquid to allow partial disposals as and when cash funds are required to provide grants to institutions or to settle governance costs.

Cost or valuation at 5 April 2022 is represented by:

Valuation in 2022
Cost
Listed
investments
£
49,985,071
117,788,670
167,773,741

continued...

Page 18

DocuSign Envelope ID: EC293B6A-C3F1-4122-86E0-A1B37C549875DocuSign Envelope ID: DEB75CC5-477A-467E-869D-6BC59071BCC6

The John Armitage Charitable Trust

Notes to the Financial Statements - continued for the Year Ended 5 April 2022

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

14.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Accrued income
15.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
5.4.22
£
2,499,528
5.4.22
£
-
5.4.21
£
-
5.4.21
£
27,439

Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

16. ACCRUALS AND DEFERRED INCOME

Accruals
17.
ANALYSIS OF NET ASSETS BETWEEN FUNDS
Investments
Current assets
Current liabilities
Accruals and deferred income
Investments
Current assets
Current liabilities
Accruals and deferred income
5.4.22
£
90,582
Endowment
fund
5.4.22
£
167,773,741
2,968,927
-
(90,582)
170,652,086
Endowment
fund
5.4.21
£
150,060,899
132,259
(27,439)
(67,478)
150,098,241
5.4.21
£
67,478
Total
funds
5.4.22
£
167,773,741
2,968,927
-
(90,582)
170,652,086
Total
funds
5.4.21
£
150,060,899
132,259
(27,439)
(67,478)
150,098,241

continued...

Page 19

DocuSign Envelope ID: EC293B6A-C3F1-4122-86E0-A1B37C549875DocuSign Envelope ID: DEB75CC5-477A-467E-869D-6BC59071BCC6

The John Armitage Charitable Trust

Notes to the Financial Statements - continued for the Year Ended 5 April 2022

18. MOVEMENT IN FUNDS

At 6.4.21
£
Unrestricted funds
General fund
-
Endowment funds
Unrestricted expendable endowment fund
150,098,241
TOTAL FUNDS
150,098,241
Net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
-
Endowment funds
Unrestricted expendable endowment fund
16,290,752
TOTAL FUNDS
16,290,752
Comparatives for movement in funds
At 6.4.20
£
Unrestricted funds
General fund
-
Endowment funds
Unrestricted expendable endowment fund
109,519,581
TOTAL FUNDS
109,519,581
Net
movement

in funds
£
(7,443,652)
27,997,497
20,553,845


Resources

expended
£
(7,443,652)
(206,383)
(7,650,035)
Net
movement

in funds
£
(4,394,827)
44,973,487
40,578,660
Transfers

between
funds
£
7,443,652
(7,443,652)
-

Gains and

losses
£
-
11,913,128
11,913,128
Transfers

between
funds
£
4,394,827
(4,394,827)
-

At
5.4.22
£
-
170,652,086
170,652,086

Movement
in funds
£
(7,443,652)
27,997,497
20,553,845

At
5.4.21
£
-
150,098,241
150,098,241

continued...

Page 20

DocuSign Envelope ID: EC293B6A-C3F1-4122-86E0-A1B37C549875DocuSign Envelope ID: DEB75CC5-477A-467E-869D-6BC59071BCC6

The John Armitage Charitable Trust

Notes to the Financial Statements - continued for the Year Ended 5 April 2022

18. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Incoming
Resources
Gains and
resources
expended
losses
£
£
£
Unrestricted funds
General fund
-
(4,394,827)
-
Endowment funds
Unrestricted expendable endowment fund
12,093,770
(160,686)
33,040,403
TOTAL FUNDS
12,093,770
(4,555,513)
33,040,403
A current year 12 months and prior year 12 months combined position is as follows:
Net
Transfers
movement
between
At 6.4.20
in funds
funds
£
£
£
Unrestricted funds
General fund
-
(11,838,479)
11,838,479
Endowment funds
Unrestricted expendable endowment fund
109,519,581
72,970,984
(11,838,479)
TOTAL FUNDS
109,519,581
61,132,505
-

Movement
in funds
£
(4,394,827)
44,973,487
40,578,660

At
5.4.22
£
-
170,652,086
170,652,086

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Endowment funds
Unrestricted expendable endowment fund
TOTAL FUNDS
Incoming
resources
£
-
28,384,522
28,384,522

Resources

expended
£
(11,838,479)
(367,069)
(12,205,548)

Gains and

losses
£
-
44,953,531
44,953,531

Movement
in funds
£
(11,838,479)
72,970,984
61,132,505

Transfers between funds

The Expendable Endowment Fund represents capital which may be expended at the discretion of the trustees. During the year £7,443,652 (2021 - £4,394,827) was transferred from the Expendable Endowment fund to the Unrestricted Fund.

continued...

Page 21

DocuSign Envelope ID: EC293B6A-C3F1-4122-86E0-A1B37C549875DocuSign Envelope ID: DEB75CC5-477A-467E-869D-6BC59071BCC6

The John Armitage Charitable Trust

Notes to the Financial Statements - continued for the Year Ended 5 April 2022

19. OTHER FINANCIAL COMMITMENTS

At the balance sheet date the trust had committed to pay grants totalling £4,225,820 (2021 - £2,735,679) within 12 months and £5,197,000 (2021 - £918,973) after 12 months. These amounts are payable subject to conditional terms which are set out in writing prior to payment of the initial donation. The commitments will be funded by the sale of fixed asset investments.

20. RELATED PARTY DISCLOSURES

Mr J C Armitage, a trustee of the Charity, is also a trustee of the Winston Churchill Memorial Trust, a beneficiary of the Charity. During the year the Charity made donations totalling £54,000 (2021 - nil) to the Winston Churchill Memorial Trust.

Mr W Francklin, a trustee of the Charity, is also a trustee of Independence at Home, a beneficiary of the Charity. During the year the Charity made donations totalling £72,000 (2021 - £48,000) to Independence at Home.

Mrs C Francklin, a trustee of the Charity, is also the church warden of St John the Evangelist Church, Wicken (Wicken PCC), a beneficiary of the Charity. During the year the Charity made no donations (2021 - £15,000) to St John the Evangelist Church, Wicken (Wicken PCC).

Henry Freeland set up Standing Voice a charity to which The John Armitage Charitable Trust made a grant of £20,000 in the year (2021 - £20,000). Mr J C Armitage is a Trustee of The John Armitage Charitable Trust and a cousin of Henry Freeland.

Mr H Francklin, son of W Francklin and C Francklin, is a trustee of Mvumi School Trust. The Charity made donations of £16,620 (2021 - £26,620) to Mvumi School Trust.

In relation to the above, the relevant trustee absented himself or herself from discussions relating to, and the vote on grants to a charity on whose board he or she also serves.

Trustees gifted investments having a market value at the date of the gifts of £16,289,424 (2021- £12,093,716) to the Charity during the year without conditions and £2,499,528 (2021 - nil) of this balance is included within debtors as at 5 April 2022.

21. ULTIMATE CONTROLLING PARTY

The Charity is under the joint control of the trustees.

22. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the reporting period (as per the Statement of Financial
Activities)
Adjustments for:
Gain on investments
Interest received
Income attributable to endowment
Expenditure attributable to endowment
Income attributable to endowment
Increase in debtors
(Decrease)/increase in creditors
Net cash used in operations
5.4.22
£
20,553,845
(11,913,128)
(1,380)
(1,328)
206,383
(16,289,424)
(15)
(4,335)
(7,449,382)
5.4.21
£
40,578,660
(33,040,403)
(55)
-
160,686
(12,093,715)
(52)
45,612
(4,349,267)

23.. ANALYSIS OF CHANGES IN NET FUNDS

At 6.4.21 Cash flow At 5.4.22
£ £ £

continued...

Page 22

DocuSign Envelope ID: EC293B6A-C3F1-4122-86E0-A1B37C549875DocuSign Envelope ID: DEB75CC5-477A-467E-869D-6BC59071BCC6

The John Armitage Charitable Trust

Notes to the Financial Statements - continued for the Year Ended 5 April 2022

23..
ANALYSIS OF CHANGES IN NET FUNDS - continued
Net cash
Cash at bank
Total
132,207
132,207
132,207
337,124
337,124
337,124
469,331
469,331
469,331

24. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 5 April 2022
Cash and cash equivalents
Year ended 5 April 2021
Cash and cash equivalents
5.4.22
£
469,331
5.4.21
£
132,207
5.4.21
£
132,207
5.4.20
£
466,693

Page 23