THE JECDA FOUNDATION (A Company Limited By Guarantee)
Charity No. 1117914 Company No. 06035021
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31ST DECEMBER 2020
The Jecda Foundation Legal and Administrative Information
Registered Office
Eastry Court Church Street Eastry Kent CT13 0HL
Solicitors
Farrer & Co 66 Lincoln's Inn Fields London WC2A 3LH
Independent Examiner
James Cross For and on behalf of Moore Kingston Smith LLP Devonshire House 60 Goswell Road London EC1M 7AD
Investment Advisers and Bankers
UBS AG 3 Finsbury Avenue London EC2M 2AN
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The Jecda Foundation Report of the Trustees
The Trustees present their report and financial statements for the year ended 31st December 2020.
Company Number 06035021 Charity Number 1117914
Governing Documents
The JECDA Foundation is constituted as a limited company without share capital. The charity was incorporated on the 21st of December 2006 and is governed by its Memorandum and Articles of Association, as amended on 30 April 2009.
Board of Trustees
The trustees (who are also the directors, under company law) who served throughout the year to 31st December 2020 and up to the date of signing this report are detailed below.
Lord Freud Lady Freud Mr A A Freud Ms E A Freud Ms J S Freud
Company Secretary
Lady Freud
Recruitment and Appointment of Board of Trustees
As dictated by the charity’s Articles of Association, the board of trustees is appointed by the members of the company. Any person desiring to be admitted to the membership of the company is required to apply in writing. No person shall be admitted until approved by resolution passed in accordance with the Articles of Association by the existing members, who hold absolute discretion as to the admission of any persons.
The information set out on page 1 forms part of this report.
Organisation
The strategic direction of the charity is the responsibility of the board of trustees. In accordance with the constitution the board meets at least once a year. The day-to-day running of the charity is carried out by the officers of the charitable company secretary, who are responsible to the board of trustees.
No trustee receives payment for their activities nor have they received reimbursement for their travel and other related expenses.
Risk
The trustees have examined the major strategic, business and operational risks that the charity faces. This involved identifying the specific risks, assessing their potential impact and likelihood of occurrence, determining what steps could be taken to mitigate those risks and delegating responsibility to executive staff for overseeing management of the associated controls.
As a grant giving charity, Jecda's main risks are reputational, based on whether the initiatives it supports are a success. At the same time it is dependent on the progress of financial markets to maintain its capital, despite a cautious investment strategy. While it is accepted that the charity’s risk management strategies cannot offer absolute assurance against all potential forms of loss or damage, the trustees are satisfied that the controls employed do mitigate exposure to the most significant risks faced by the charity and recognise the need to review the risk management strategy on an annual basis.
One impact of Covid has been to undermine face-to-face mentoring activity within Grandmentors, the charity’s main current initiative. However, the model was successfully adjusted to incorporate virtual meetings. As a result, the project has so far continued to expand. The main risk is now the poor financial position of many local authorities, who generally fund 50% of Grandmentors, as a result of Covid.
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The Jecda Foundation Report of the Trustees (Continued)
Objects
The mission of The JECDA Foundation is the relief of poverty, the advancement of education and health and the advancement of environmental protection or improvement and such other purposes for the benefit of the public as shall be exclusively charitable.
Aims & Objectives
The aims and objectives of The JECDA Foundation are to act in such a way as to pursue its charitable mission.
Public Benefit
We have referred to the guidance in the Charity Commission’s general guidance on Public Benefit including the guidance 'public benefit: running a charity (PB2),' when reviewing our aims and objectives and in planning our future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives they have set.
Annual Review, Achievements and Performance
The main work of the Foundation during 2020 has been with Volunteering Matters delivering the Grandmentor project. The governance arrangements are in place and the local project boards have been meeting and reporting to the Executive Steering Group. The number of Grandmentor sites stands at eight with a number of initiatives set to expand this dependent on the success of fundraising.
Policies
Reserves: The Foundation has aimed to build up its reserves from the original £1.2m to facilitate meeting its objectives. Generally, the Foundation has resolved to donate up to the real income return on its funds each year and use new endowments to build up reserves. However, the Foundation retains full flexibility to build reserves or to run them down, depending on perceived requirements and charitable opportunities. At 31 December 2020 the charity had unrestricted funds of £2,225,558 (2019: £2,321,134).
Grant Making: The Jecda Foundation aims to select charitable activities to support from a wide range of possibilities. Each investment is the choice of one or more of the trustees, whose responsibility is to research the opportunity in detail. All grants require Board approval.
Investments: Investments are made with the view to capital maintenance in turbulent times.
Financial Review
Over the year the Foundation has made charitable payments totalling £52,500 (2019: 75,000) to Volunteering Matters. It received gross donations during the year of £nil including gift aid, from its principal donor (2019: £62,500). Overall, as a result of these moves and the loss in revaluation the investment portfolio the Foundation's reserves decreased by 4.1% to £2,225,558.
Future Plans
The current focus is on supporting the expansion of Grandmentors to further sites across the country.
Statement of Trustees' Responsibilities
The trustees (who are also directors of The Jecda Foundation 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).
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The Jecda Foundation Report of the Trustees (Continued) f&"r View ol ts state of the thlat4e nFnYK1 inttfft Ihat acr aianybffle ts hnATh)g& ol th8 ¢h¥rtaDie ana enatrle them lo enSLwe the assets ol t thaJrtat4• and tth'r4 f8asonth St ltr Ih• and UKwd R•wt4¢d Ir(T FRS 1Q2 Ch¥lOes Ap). This rep)rt has tw ar£ty¢ ith the sr4od ol Pa11S of Thcornrthlss r&ating smdl umrenies IY Freud
Independent Examiner's Report to the Members of The Jecda Foundation I report tr) the charity trustees my examination ofthe accounis of ts Company for ts year ended 31 Decernber 2020. Responsibilities and basis of report As the charity's trustees of the Company land also rfs direclors for the puryjoses of company lawl you are responsible lor th8 prep8r8bon of the accounts in Jrdan th the requirements of the Companies Act 2006 I'the 2006 Act'l. Having satisfied myself that the accounts of the Company are nol required io be audited under Part 16 01 the 2006 Act and are eligible for independent examination, I report in respect of my examinatson of your Charity's 8ccount8 88 c8rrigd out under section 145 of th8 Charrbes Act 2011 1'th8 2011 Act'l. In carrying out my examinalion I have follo{1 th& DirthN)s given by the Charty C(nmissKM under sectson 145151 Ibl ol the 2011 Act. Indepond•nt •xamln•r'8 stat•m•nt I have completed my examinabon. I criM that IK) matters havg to my artont in connecbon wth the examinabon giving mo cause to bdi9Vg'. a¢UntIng records 19 not kept in re$Fd of th8 CmpanY as required by sKti¢)n 386 of thg 2CX)6 Acl.. th& accounts do nol accord 4bilh t$ records". the accounts do nol compty wth the accounting requirements of SeCtn 396 of ihe 20C6 Act other than any r8quif8m8nt that th8 accounts give 8 'tr antj lair viow wknieh is not a mattor considorad as part of an independent examination". or th6 acoxjnts have nol been ppaffjd in ac¢ordance the methc*fjs and principles ol the Stslemgnt of Recommended Practice for accountsng and r8POrting by charities applicable lo charities preparing their accounts in accorfance with tho Financial R¥FOn9 Stsndard appIabl0 in thg UK aNJ Rgpublic of Ireland IFRS 1021. I have no concerns and have come 8cr055 no other m8tter5 in (x)nnection %M¢h the examination to which attention should bo dravm in this report in order to gnablo a proper understanding of thg aUnts to bo rea¢hgd. K, L Devonshire House 60 Goswg11 Road London EC1 M 7AD Date: 1 June 2021 James Cross Ind?rn1 Examiner For and on behalf of Mc4Jre Kingston Smilh LLP Page.. 5
The Jecda Foundation Statement of Financial Activities (incorporating the Summary Income and Expenditure Account) For the year ended 31st December 2020
| Note Income from: Donations 3 Investments 2 Total income Expenditure on: Raising funds - Investment management costs Charitable activities 4 Total expenditure Net income/(expenditure) before gains and losses on investments Net (losses)/gains on investments 7 Net movement in funds Total funds brought forward Total funds carried forward 9 |
Unrestricted Funds 2020 £ - 20,338 20,338 6,740 56,281 63,021 (42,683) (52,893) (95,576) 2,321,134 2,225,558 |
Unrestricted Funds 2019 £ 62,500 24,189 |
|---|---|---|
| 86,689 | ||
| 6,382 74,173 |
||
| 80,555 | ||
| 6,134 165,364 |
||
| 171,498 2,149,636 |
||
| 2,321,134 |
All gains and losses arising in the year have been included in the Statement of Financial Activities and arise from continuing operations.
The notes on pages 8 to 11 form part of these accounts.
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The Jecda Foundation Balance Sheet as al 31st December 2020 2)19 2a9 339 2 324 794 Cr•Jrttir•: Wlng wlthin or y 3.781 N¢t Currwrt U•tlllU•• 5558 21 134 Fund• 2.22S.558 2,321.134 of thg Compws Aa 2fyX. Icl Tr drecloTr re8FtinitsffC¢. 01 that th¢ g)mFthy keeF &y(Wy ilh 386 of the Illl ry8Ong styttyr•)ty TMt thr cltr 8l&t• cl c4 tre cwltth c(xnw as arthe of the hnanLXt Jetr. andol ts Inc)w* aThJ e4Yn(ltyre trthe y. in acCcKL Trust¢0 The rteS (x) ge$ 8 to 11 fc¥rn wol Page.. 7
The Jecda Foundation Notes to the Financial Statements For the year ended 31st December 2020
1 Accounting Policies
The financial statements have been prepared on a going concern basis under the historical cost convention modified for the revaluation of listed investments which are accounted for at market value.
Accounting Convention
The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The company is a public benefit entity for the purposes of FRS 102 and a registered charity established as a company limited by guarantee and therefore has also prepared its financial statements in accordance with the 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 (The FRS 102 Charities SORP), the Companies Act 2006 and Charities Act 2011.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest pound.
Going Concern
The trustees have assessed whether the use of going concern and have considered possible events or conditions that might cast significant doubt on the ability of the charitable company to continue as a going concern, including the potential future impact of the COVID-19 pandemic. The trustees have made this assessment for a period of at least one year from the date of the approval of these financial statements. In particular, the trustees have considered the charitable company’s forecasts and projections and have taken account of their charitable commitments. After making enquiries, the trustees have concluded that there a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future, and that the COVID-19 pandemic is unlikely to negatively impact the charity's ability to continue as a going concern. The charitable company therefore continues to adopt the going concern basis in preparing its financial statements.
Income
All income is recognised when there is entitlement to the funds, the receipt is probable and the amount can be measured reliably. Where income is received in advance of meeting any performance-related conditions there is not unconditional entitlement to the income and its recognition is deferred and included in creditors as deferred income until the performance-related conditions are met. Donations are recognised on receipt. Gift aid is accounted for in the period for which the donation was included.
Expenditure
Expenditure is included in the Statement of Financial Activities on a accruals basis, inclusive of any VAT which cannot be recovered. Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.
Grants for specific purposes relate to transfers made to recipient organisations for the purpose of charitable activities.
Support costs are those incurred in the administration of the charity and are primarily associated with the constitutional and statutory requirements.
Costs of raising funds are those costs incurred in the external management of the charities cash and investment portfolio.
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The Jecda Foundation Notes to the Financial Statements For the year ended 31st December 2020
1 Accounting Policies (continued)
Fund Accounting
Unrestricted funds are funds which are available for use at the discretion of the trustees in furthance of the general objects of the charity.
Investments
Investments comprise current accounts, equity investments and fixed interest securities held with UBS. Income from investments is credited in the accounts on the date of receipt. Listed investments are stated at market value at the year end. Any gains or losses incurred on the revaluation of investments are recognised in the statement of financial activities.
Financial instruments
The company has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
Critical accounting estimates and areas of judgements
In the view of the trustees in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year.
| 2 Investments Income from listed investments Interest from cash deposits/bonds Foreign exchange (losses)/gains 3 Voluntary Income Donations Gift aid 4 Charitable Activities Grants paid Volunteering Matters Keep Out (grant repaid) Support costs Independent examiners' fees |
2020 £ 16,305 4,067 (34) 20,338 2020 £ - - - 2020 £ 52,500 52,500 3,781 56,281 |
2019 £ 16,787 7,445 (43) |
|---|---|---|
| 24,189 | ||
| 2018 £ 50,000 12,500 |
||
| 62,500 | ||
| 2019 £ 75,000 (4,487) |
||
| 70,513 3,660 |
||
| 74,173 |
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The Jecda Foundation Notes to the Financial Statements For the year ended 31st December 2020
5 Net movement in funds
| This is stated after charging: Independent examiners' fee |
2020 £ 3,781 |
2019 £ 3,660 |
|---|---|---|
6 Employees
The charity has no employees in the current and preceding year. The trustees of the charity are considered to be the key management personnel. The trustees were not remunerated during the current or preceding year.
7 Investments
| Market value at 1st January Additions (including reinvestment of dividends and bond interest) Disposal proceeds Net gain/(loss) on investment Market value of investment portfolio at 31st December Cash account included in the portfolio Market value at 31st December Historical cost at 31st December (excluding cash deposits) |
2020 Listed £ 1,830,306 1,253,732 (812,606) (52,893) 2,218,539 10,800 2,229,339 2,018,187 |
2019 Listed £ 1,657,509 7,433 - 165,364 |
|---|---|---|
| 1,830,306 494,488 |
||
| 2,324,794 | ||
| 1,520,059 |
7 Investments (continued)
The investments which are considered to be material in the context of the portfolio comprise:
| Fixed interest securities Cater Allen Santander UBS (IRL) Fund Select Money Plc Investec 95 Notice USD Bond - SG Issuer Sa Cpn On Eurostoxx Equities UBS (IRL) ETF Plc Ishares Plc |
2020 Market Value £ - 205,099 436,500 762,797 301,539 170,620 341,984 |
2019 Market Value £ 757,255 203,164 - - 317,496 |
|---|---|---|
| 152,622 399,769 |
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The Jecda Foundation Notes to the Financial Statements For the year ended 31st December 2020
| 8 Creditors Accruals 9 Statement of Movement on Reserves Balance brought forward Surplus for the year Balance carried forward |
2020 £ 3,781 |
2019 £ 3,660 |
|---|---|---|
| 2020 £ 2,321,134 (95,576) |
||
| 2,225,558 |
10 Trustees and Related Parties
No trustees received any remuneration for their services and no expenses were re-imbursed during the year (2019: £Nil).
No donations were recorded (2019: £62,500) from any trustees (2019: one trustee) during the accounting period. The amount disclosed in 2019 is gross of gift aid received of £12,500.
David Freud, a trustee of The Jecda Foundation, was appointed the President of Volunteering Matters in May 2019. During the year the charity donated £52,500 (2019: £75,000) to Volunteering Matters in relation to the Grandmentor Scheme. It was agreed that David Freud absents himself from Board meeting when discussions regarding future contributions to the Grandmentor project were made.
11 Limited Liability
The Jecda Foundation is a company limited by guarantee and as such does not have a share capital. In the event of a winding up the liability of each member is limited to £1.
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