JFS CHARITABLE TRUST (formerly JFS Development Charitable Trust)
REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2021
JFS CHARITABLE TRUST
CONTENTS
| Page | |
|---|---|
| Trust Information | 2 |
| Report of the Trustees | 3 - 4 |
| Statement of Trustees’ Responsibilities | 5 |
| Report of the Auditors | 6 - 8 |
| Statement of Financial Activities | 9 |
| Balance Sheet | 10 |
| Statement of Cashflows | 11 |
| Accounting Policies | 12 |
| Notes to the Financial Statements | 13 - 15 |
JFS CHARITABLE TRUST
TRUST INFORMATION
Board of Trustees Mr R Kafton Mr I Novick Mr S Waldman (Resigned 29 March 2021) Mrs R Fink (Resigned 31 May 2021) Dr David Moody (Appointed 26 January 2022) Mr J Cooper Andrew Moss Stephen Pack (Appointed 22 April 2021) Company Secretary Mr P Bunt (Resigned 30 November 2020) Ms Manpreet Bal (Appointed 5 July 2021) Principal Office JFS School The Mall Kenton Harrow Middlesex HA3 9TE Statutory Auditors PKF Littlejohn LLP Statutory Auditor 15 Westferry Circus Canary Wharf London E14 4HD Bankers Barclays Bank plc PO Box 3474 London NW1 7NQ Company Number 3942126 Charity Number 1114730
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JFS CHARITABLE TRUST
REPORT OF THE TRUSTEES
Introduction
The Trustees (who are also the Directors of the charitable company) submit the Report and audited Financial Statements of the JFS Charitable Trust (the Trust) for the year ended 31 March 2021. The Trustees have adopted the provisions of the Statement of Recommended Practice “Accounting and Reporting by Charities” in preparing the annual report and financial statements of the charity.
The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Companies Act 2006, the Charities Act 2011 and the Statement of Recommended Practice “Accounting and Reporting by Charities”.
Legal and Administrative Information
The charity is incorporated as a company limited by guarantee, registration number 3942126. The governing instrument is the Memorandum and Articles of Association dated 2 March 2000, as amended on 17 February 2006. The charity was considered to be an exempt charity under the Charities Act 2011 on incorporation as it was under the control of the Governing Body of the JFS School, itself an exempt charity. Following the decision of the Governing Body to relinquish control of the Trustee Body, the charity registered with the Charity Commission on 17 June 2006.
The governance of the charity is vested in the Trustees. The Trustees who served during the year are listed on page 2 and 50% were Governors of the JFS School for most of the time during the year. The Trustees are selected to ensure that there is an appropriate balance of skills and experience within the Trustee Board. New Trustees are appointed by the existing Trustee Board.
Structure, governance and management
The day to day running of the Trust is delegated to an administrator and overseen by the Trustees who meet quarterly.
Trust Objects and Public Benefit
The objects of the Trust are to advance the education of pupils at the JFS School (the School) by the acquisition of land for the School and the provision of resources, equipment, teaching and facilities for education in addition to those provided out of public funds. The Trustees confirm that they have paid due regard to the Charity Commission’s guidance on Charities and Public Benefit when reviewing the activities of the Trust.
Activities and Achievements
During the year the charity has supported developments in the school including curriculum development as well as investment in the physical and academic structure of the school. .
Review of the Business and Future Plans
The financial results for the year are set out on page 9.
The Trust will continue to support the development of JFS School. Further support will be provided to curriculum development and the School infrastructure.
Reserves
Funds at 31 March 2021 amounted to £1,755,420 (2020- £2,128,712) of which all was unrestricted (2020 - all). Following the completion of the new School project, the primary purpose of the Trust is to raise funds for JFS School and to transfer these to the School when requested by the School for purposes in accordance with the objects of the Trust. It is the intention of the Trustees to maintain a significant level of unrestricted reserves to enable the settlement of expenses associated with the continuing expansion of the School and to provide for its future development needs.
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JFS CHARITABLE TRUST
REPORT OF THE TRUSTEES
Investment Policy
The policy of the charity is to combine security with higher than average income in a managed portfolio of investments.
The Trustees have decided the portfolio should be reviewed against two benchmarks; in the short to medium term against appropriate indices and in the longer term, CPI plus 4% per annum.
Risk Management
The Trustees have examined, with the Governors of JFS School, the principal areas of the Trust’s operations and considered the major risks faced in each of these areas.
In the opinion of the Trustees, the Trust has an effective review system and has allocated sufficient resources to ensure that those risks identified will be mitigated to a level acceptable for the Trust’s day to day operations.
Disclosure of Information to Auditors
The Trustees who held office at the date of approval of this Trustees’ Report confirm that, so far as they are individually aware, there is no relevant audit information of which the charity's auditors are unaware; and each Trustee has taken all reasonable steps that they ought to have taken as a Trustee to make themselves aware of any relevant audit information and to establish that the charity's auditors are aware of that information.
In preparing this report, the Trustees have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
Auditors
Our independent auditor PKF Littlejohn LLP has signified its willingness to continue in office.
By Order of the Board of Trustees and signed on its behalf by:
Ishai Novick Chairman of the Trustees
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JFS CHARITABLE TRUST
STATEMENT OF TRUSTEES’ RESPONSIBILITIES
The Trustees (who are also directors of JFS Charitable Trust for the purposes of company law) are responsible for preparing the Trustees’ Report and the Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company and Charity law requires the Trustees to prepare Financial Statements for each financial year under law, that 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these Financial Statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities’ SORP;
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make judgments and estimates that are reasonable and prudent;
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state whether applicable United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) has been followed, disclosing and explaining any departures there from in the Financial Statements; and
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prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the Financial Statements comply with the Companies Act 2006 and Charities Act 2011. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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JFS CHARITABLE TRUST
REPORT OF THE INDEPENDENT AUDITORS
Opinion
We have audited the financial statements of JFS Charitable Trust (the ‘charitable company’) for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows 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 FRS 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:
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give a true and fair view of the state of the charitable company’s affairs as at 31 March 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
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 charitable company 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 charitable company’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 other information comprises the information included in the report of the trustees, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the report of the trustees. Our opinion on the financial statements does not cover the other information and 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 course of 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.
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REPORT OF THE INDEPENDENT AUDITORS
JFS CHARITABLE TRUST
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 require us to report to you if, in our opinion:
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the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or
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the charitable company has not kept adequate accounting records; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the statement of trustees’ responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) 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 charitable company’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 charitable company 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 145 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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We obtained an understanding of the charitable company and the sector in which it operates to identify laws and regulations that could reasonably be expected to have a direct effect on the financial statements. We obtained our understanding in this regard through discussions with management, industry research, application of cumulative audit knowledge and experience of the sector.
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We determined the principal laws and regulations relevant to the charitable company in this regard to be those arising from Charities (Accounts and Reports) Regulations 2008, Charities Act 2011 and Companies Act 2006.
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We designed our audit procedures to ensure the audit team considered whether there were any indications of non-compliance by the charitable company with those laws and regulations. These procedures included, but were not limited to enquiries of applicable management and review of minutes.
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We also identified the risks of material misstatement of the financial statements due to fraud. We do not consider there to be any further areas of risk in addition to the non-rebuttable presumption of a risk of fraud arising from management override of controls.
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JFS CHARITABLE TRUST
REPORT OF THE INDEPENDENT AUDITORS
- As in all of our audits, we addressed the risk of fraud arising from management override of controls by performing audit procedures which included, but were not limited to: the testing of journals; reviewing accounting estimates for evidence of bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of noncompliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
Use of our report
This report is made solely to the charitable company’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 charitable company’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 charitable company and the charitable company's trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Alastair Duke (Senior Statutory Auditor) For and on behalf of PKF Littlejohn LLP Statutory Auditor
15 Westferry Circus Canary Wharf London E14 4HD
24 March 2022
PKF Littlejohn 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.
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JFS CHARITABLE TRUST
STATEMENT OF FINANCIAL ACTIVITIES Incorporating an Income and Expenditure Account Year ended 31 March 2021
| Note | Total | Total | |
|---|---|---|---|
| 2021 | 2020 | ||
| Incoming from: | |||
| Donations | 1,686,518 | 1,945,797 | |
| Investment income | 1 | 53,334 | 90,025 |
| _ | __ | ||
| Total Income | 1,739,852 | 2,035,822 | |
| _ | __ | ||
| Expenditure on: | |||
| Activities for generating voluntary income | 2 | 6,436 | 4,963 |
| Charitable Activities | 3 | 2,505,201 | 2,139,787 |
| Support costs | 4 | 11,932 | 15,948 |
| _ | __ | ||
| Total Expenditure | 2,523,569 | 2,160,698 | |
| Net gains/(losses) on investments | 5 | 410,425 | (292,328) |
| _ | __ | ||
| Net Movement in Funds | (373,292) | (417,204) |
|
| Balances at beginning of year | 2,128,712 | 2,545,916 | |
| __ | __ | ||
| Balances at end of year | £1,755,420 | £2,128,712 | |
| __ | __ |
The funds of the Trust derive from continuing activities. The Trust had no recognised gains or losses other than those included above.
The Accounting Policies and Notes on pages 13 to 15 form part of these Financial Statements.
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JFS CHARITABLE TRUST Company Number: 3942126
BALANCE SHEET At 31 March 2021
| Note | Note | 2021 | 2020 | |
|---|---|---|---|---|
| Fixed Assets | ||||
| Investments | 5 | 2,684,159 | 2,840,616 | |
| Current Assets | ||||
| Debtors | 6 | 45,850 | 49,325 | |
| Cash at bank and in hand | 84,052 | 36,135 | ||
| ______ | _ | |||
| 129,902 | 85,460 | |||
| Creditors:amounts falling due within one year | 7 | (1,058,641) | (797,364) | |
| _ | _ | |||
| Net current liabilities | (928,739) | (711,904) | ||
| _ | __ | |||
| Net Assets | £1,755,420 | £2,128,712 | ||
| __ | __ | |||
| Funds | ||||
| Unrestricted | 1,755,420 | 2,128,712 | ||
| __ | __ | |||
| £1,755,420 | £2,128,712 | |||
| __ | __ |
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements have been approved by the Board of Trustees on 23 March 2022 and signed on its behalf by:
Ishai Novick Chairman of the Trustees
The Accounting Policies and Notes on pages 13 to 15 form part of these Financial Statements.
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STATEMENT OF CASH FLOWS Year ended 31 March 2021
JFS CHARITABLE TRUST
| Notes Net cash outflow from operating activities 8 Returns on investment and servicing of finance 9 Capital expenditure and financial investment: 5 Purchases of investments Sales proceeds Interest Increase/(Decrease) in cash in the year Cash Balances Current account Investment account 5 Movement in year |
2021 (572,299) 53,118 (345,084) 876,821 216 _ £12,772 _ 84,052 99,901 _ 183,953 _ £12,772 |
2020 (606,500) 89,513 (268,229) 465,671 512 _ £(319,013) _ 36,135 135,046 _ 171,181 _ £(319,013) |
|---|---|---|
The Accounting Policies and Notes on pages 13 to 15 form part of these Financial Statements.
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JFS CHARITABLE TRUST
ACCOUNTING POLICIES
Basis of Accounting
The JFS Charitable Trust is a charity in the United Kingdom. The address of the registered office is given in the charity information on page 2 of these financial statements.
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), and UK Generally Accepted Practice as it applies from 1 January 2019.
The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
Income
Voluntary income arising from donations and gifts, the existence of which is not known until it is received by the charity, is credited to the Statement of Financial Activities (SOFA) on a receipts basis.
Grant income, investment income and all other income is credited to the SOFA on an accruals basis.
Expenditure
Expenditure on charitable activities comprises payments made for the defined charitable purposes of the charity and is accounted for on an accruals basis.
Governance costs are those costs associated with constitutional and statutory requirements, and the governance arrangements of the charity.
Investments
Investments are shown at their mid-market value at the year end. Realised and unrealised gains and losses are accounted for through unrestricted funds as appropriate.
Fund Accounting
Unrestricted funds comprise those monies which may be used towards meeting the general charitable objectives of the charity at the discretion of the Trustees. Restricted funds are donations subject to conditions imposed by donors.
Taxation
The Trust as a registered charity is not liable to income tax or corporation tax on income derived from its charitable activities. Income arising from non-charitable activities may be subject to taxation. The Trust is not registered for VAT. All amounts in the Financial Statements are shown inclusive of VAT, where relevant.
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JFS CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2021
1. Investment Income
| 1. | Investment Income | 2021 | 2020 |
| Bank interest | 216 | 512 | |
| Investment income | 53,118 | 89,513 | |
| _ | _ | ||
| £53,334 | £90,025 | ||
| _ | _ | ||
| 2. | Activities for generating voluntary income | ||
| Alumni Costs | 3,550 | 825 | |
| Other costs | 2,886 | 4,138 | |
| ______ | ______ | ||
| £6,436 | £4,963 | ||
| ______ | ______ | ||
| 3. | Resources Expended on Charitable Activities | ||
| Total | Total | ||
| 2021 | 2020 | ||
| Payments for additional equipment | |||
| outside the PFI contract | 4,856 | 4,792 | |
| Other Donations | 838,856 | 150,174 | |
| Capital Projects | 22,559 | 25,750 | |
| Other | 13,668 | 16,280 | |
| Transfers to JFS School | 1,625,262 | 1,942,791 | |
| __ | __ | ||
| £2,505,201 __ |
£2,139,787 __ |
Staff Costs
No staff costs are met directly from the funds of the Trust; recharges are made for the costs of those members of staff who work on behalf of the Trust, but they remain employed by the JFS School. None of the Trustees received remuneration directly or indirectly from the Trust. No Trustees’ expenses have been incurred in 2021 or 2020.
4. Support costs
| 4. | Support costs | 2021 | 2020 |
|---|---|---|---|
| Auditors’ remuneration – current year charge | 5,670 | 5,400 | |
| Bank charges | 5,307 | 3,812 | |
| Professional fees | 955 | 6,736 | |
| ______ | _____ | ||
| £11,932 | £15,948 | ||
| ______ | _____ |
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JFS CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2021
| 5.Investments Market value at beginning of year Additions at cost Disposal proceeds Unrealised gains/ (losses) Realised (losses) Market value at end of year Historical cost Portfolio Equities Bonds Portfolio Funds Hedge Funds Other Cash at stockbrokers 6.Debtors Gift Aid tax refund receivable Prepayments 7.Creditors: amounts falling due within one year Accruals Amounts owed to JFS Student Fund Amounts owed to the JFS School Deferred income |
2021 2020 2,705,570 3,195,360 345,084 268,229 (876,821) (465,671) 427,267 (274,891) (16,842) (17,437) _ _ £2,584,258 £2,705,570 ______ _ £2,203,719 £2,752,458 ___ _ 1,368,405 1,259,280 543,968 607,946 156,252 260,003 345,138 69,117 170,495 509,224 _ _ 2,584,258 2,705,570 99,901 135,046 _ _ £2,684,159 £2,840,616 _ _ 40,947 44,862 4,903 4,463 _ _ £45,850 £49,325 _ _ 19,747 12,889 25,521 131,848 1,013,373 647,944 - 4,683 _ _ £1,058,641 £797,364 _ _ |
|---|---|
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JFS CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2021
8. Reconciliation of Net Outgoing Resources to Net Cash
| Outflow from Operating Activities Net movement in funds (Gains)/Losses on investments Decrease/(increase) in debtors Increase(Decrease) in creditors Investment income received Net cash outflow from operating activities Returns on investments and servicing of Finance Investment income |
2021 2020 (373,292) (417,204) (410,425) 292,328 3,475 (30,288) 261,277 (361,311) (53,334) (90,025) _ _ £(572,299) £(606,500) _ _ £53,118 £89,513 _ _ |
|---|---|
| __ |
9. Returns on investments and servicing of Finance
10. Contingent Liabilities
There were no contingent liabilities at 31 March 2021 or 31 March 2020.
11. Connected Charities and related party transactions
The JFS Charitable Trust was set up in order to raise funds to acquire land on behalf of and to support other activities of the JFS School, an exempt charity and voluntary aided school. At 31 March 2021, the Charity owed JFS School £1,013,373 (2020 - £647,944).
12. Limitation of Liability and Distribution of Assets
The Company is limited by guarantee having no share capital. If the Charity is dissolved, every member remaining or who was a member within 12 months of the winding up has agreed to contribute up to £1 towards the costs of dissolution and the liabilities incurred by the Charity whilst the contributor was a member.
If the Charity is dissolved the assets remaining (if any, after provision has been made for all its liabilities) shall be transferred to the JFS School or in the event of the closure of the School, applied either by transfer to one or more bodies established for charitable purposes similar to the objects nominated by the body or organisation that at the time has the power to appoint the foundation governors of the School or in such other manner consistent with charitable status as the Charity Commission shall approve in writing in advance.
13. Ultimate Controlling Party
The Trustees do not consider that there is an Ultimate Controlling Party.
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