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2022-03-31-accounts

THE PACK FOUNDATION

REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022

I Registered charity number: 1118301

• 1

THE PACK FOUNDATION

CONTENTS

Page
Legal and administrative information
Trustees' Report 2-4
Independent examiner's report 5
Statement of financial activities 6
Balance sheet 7
Notes to the financial statements 8-12

THE PACK FOUNDATION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees GeraldNPack
Carol A Pack
Elisabeth Hirlemann
Matthew Pack
Simon Pack
Jeremy Pack
Hannah Pack
Key Management Personnel Trustees as above, and Simon Whitehouse
Principal address 37 St Margaret's Street
Canterbury
Kent
CT1 2TU
Independent examiner Samantha Rouse FCCA DChA
Kreston Reeves LLP
Chartered Accountants
37 St Margaret's Street
Canterbury
Kent
CT1 2TU
Bankers and Investment Managers Coutts & Co
440 Strand
London
WC2R0QS

Page 1

THE PACK FOUNDATION

TRUSTEES'REPORT

YEAR ENDED 31 MARCH 2022

The Trustees present their annual report and financial statements for the year ended 31 March 2022

The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) "Accounting and

Reporting by Charities" (FRS 102) 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 the notes to the

accounts and comply with the charity's governing document, the Charities Act 2011 and 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 (FRS102) (effective January 2019)'.

Objectives and activities

Under the Declaration of Trust the stated objective of the Charity is to:

"hold the Trust Fund and its income upon trust for such purposes which are exclusively charitable under the laws of " England and Wales as the Trustees may decide from time to time .

Public benefit statement

The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Trust's aims and objectives and in planning future activities.

Achievements and performance in the year

The main activities of the charity fall into three categories;

  1. Obtaining or raising charitable donations

  2. Maximising long term investment returns from funds of the charity to enable funding for future grants or 3. donations Identifying, evaluating and determining the levels of grants or donations appropriate, if any, to local, national and international charitable causes.

The strategies adopted for meeting the Charity's stated objectives are to:

a) Seek charitable donations to fund the charity. b) Maximise long term income from existing funds through frequent review alongside active and

regular

c) communication with the appointed investment manager. Actively seek charitable causes.

Historic charitable donations in excess of £1 m have been secured previously which provide funds for the charity from

which to make future grants or donations and generate a long term investment income stream. Surplus funds have been invested in a reputable, actively managed investment fund specifically tailored to the

requirements of the charity sector. Whilst investment performance has proved volatile at times, the Trustees continue to be of the view that such an investment strategy is appropriate to fulfil the requirements of the charity regarding an optimum long term income stream.

Total income during the year was £34,927 (2021: £54,309). Expenditure totalled £92,852 (2021: £63,931). This resulted

in net expenditure before gains on investments of £57,925 (2021: £9,622).

Charitable contributions

During the period charitable grants and donations of £81,057 (2021: £53,916) were made. The Trustees continue to actively investigate charitable causes with the aim of making further grants in the coming year.

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THE PACK FOUNDATION

TRUSTEES' REPORT (CONTINUED) YEAR ENDED 31 MARCH 2022

Reserves policy

The Trustees maintain reserves at a level they deem sufficient for the future needs of the charity. The Trustees consider that free reserves should equate to around six months operating costs which is equivalent to £5,000 to £10,000 (2021:

£5,000 - £10,000).

In prior years the Trustees had increased the level of free reserves to £75,000 due to perceived volatility in global

markets - following solid growth in the market since summer 2020 the targetted level of free reserves has since been reduced, last year sitting in a range of £30,000 - £50,000. This year free reserves were reduced to normal levels. At 31 March 2022, unrestricted reserves amounted to £9,989 (2021:

£44,338)

Designated funds at 31 March 2022 amounted to £1,855,353 (2021: £1,782,834) and these comprise the charity's fixed

asset investments.

Investment policy

All of the charity's investments are managed by Coutts & Co, who have complete authority to invest the charity's funds in institutions which suits the charity's requirement for optimum long term returns on funds invested alongside assessing the risk strategy jointly with the trustees. The Trustees are presently satisfied the charity is receiving a reliable and economic service.

Investment performance

Since the Covid 19 pandemic seriously impacted investments in 2020 the portfolio has performed well. However, recent market falls following the invasion of Ukraine and ongoing supply chain issues in the global economy suppressed returns in the year to 5.4% of the opening investment value.

The retention of funds to support charitable works in the short term has isolated the charity from fluctuations in

valuations, preventing it impacting on charitable distributions in the short term.

Grant making policy

The Trustees consider a broad range of local, national and international charitable causes and consider which the charity is best placed to assist with funding.

Pay policy for key management

personnel

The trustees consider themselves and Simon Whitehouse, who is an external consultant, as the key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis. All trustees give of their time freely and no trustee received remuneration in the year.

Risk assessment

The trustees have considered the risks relevant to the charity and are of the opinion that currently they are low and procedures are in place to identify and control these and new risks as they arise.

Charity's plans for the future

The Trustees consider the plans of the charity to be;

Structure

The charity, which is registered with the Charity Commission under number 1118301, is established under a Declaration ofT rust dated 9 February 2007.

Going Concern

At the time of signing the accounts the Trustees are aware of the potential economic and social effects of the Covid19 virus outbreak. The full impact of the pandemic on the UK economy is yet to be seen, but the charity will continue to seek to mitigate this risk by following the UK Government's guidelines and considering its own internal strategy.

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THE PACK FOUNDATION

TRUSTEES' REPORT (CONTINUED) YEAR ENDED 31 MARCH 2022

Statement of Trustees' responsibilities

The Trustees 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).

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each

financial year which give a true and fair view of the charity's financial activities during the year and of its financial position at the end of the year. In preparing those financial statements giving a true and fair view, the trustees should follow best practice and:

select suitable accounting policies and then apply them consistently;

observe the methods and principles of the Charities SORP;

make judgements and estimates that are reasonable and prudent

state whether applicable accounting standards and statements of recommended practice have been followed,

subject to any departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity

will continue in existence.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any

time the financial position of the charity and which 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. The trustees are responsible for safeguarding the assets of the charity and hence to taking reasonable steps for the prevention and detection of fraud and other irregularities.

By order of the Trustees

Carol Pack Trustee

Date: 22/09/2022

Page4

THE PACK FOUNDATION

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE PACK FOUNDATION YEAR ENDED 31 MARCH 2022

I report to the trustees on my examination of the accounts of the charity for the year ended 31 March 2022.

Responsibilities and basis of report

As the charity's trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the 2011 Act').

I report in respect of my examination of the charity's accounts carried out under section 145 of the Act and in canying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

1.[accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act;] or

  1. the accounts do not accord with those records; or

  2. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair view' which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

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. My work has been undertaken so that I might state to the Charity's Trustees those matters I am required to state to them in an independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity's Trustees as a body, for my work or this report.

Samantha Rouse FCCA DChA

Kreston Reeves LLP Chartered Accountants Canterbury

Date: 22 September 202 2

Page5

THE PACK FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 MARCH 2022

Unrestricted funds
Notes 2022 2021
£ £
Income from:
Investment income 31,839 28,463
Donations received 2,470 20,677
Gift Aid 618 5,169
Total income 34,927 54,309
Expenditure on:
Cost of raising funds
Investment management fees 9,065 7,973
Charitable expenditure 2 81,057 53,916
Other expenditure 3 2,730 2,042
Total expenditure 92,852 63 931
Net income before gains on investments (57,925) (9,622)
Realised and unrealised gains on investments 5.2 95,591 379,239
Exchange rate movements on cash held as investment 504 (1,044)
Net movement in funds 38,170 368,573
Reconciliation of funds:
Fund balances at 1 April 2021 1,827,172 1,458,599
Fundbalances at 31 March 2022 1,865,342 1,827,172

All income and expenditure derive from continuing activities. The statement of financial activities includes all gains and losses recognised in the year. The notes on pages 8 to 12 form part of these financial statements.

Page6

THE PACK FOUNDATION

BALANCE SHEET AS AT 31 MARCH 2022

2022 2022 2021
Notes £ £ £ £
Fixed assets
Investments 5 1,855,353 1,782,834
Current assets
Debtors 6 618 5,169
Cash at bank 7 12,079 41,433
12,697 46,602
Creditors:amounts falling due within one year 8 (2,708) (2,264)
Net current assets 9,989 44,338
Total assets less current liabilities 1,865,342 1,827,172
Funds
Unrestricted funds 9,989 44,338
Designated funds 1,855,353 1,782,834
10 1,865,342 1,827,172

Approved and authorised for issue by the Trustees on 22/09/2022

Carol Pack Trustee

Page7

THE PACK FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

1 Accounting policies

1.1 General Information and basis of preparation

The Pack Foundation is a registered charity with the Charity Commission in the United Kingdom. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity's operations and principal activities are to "hold the Trust Fund and its income upon. trust for such purposes which are exclusively charitable under the laws of England and Wales as the Trustees may decide from time to time".

The charity constitutes a public benefit entity as defined by FRS 102. 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 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011.

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 and rounded to the nearest £.

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.

Unrestricted general funds are funds which can be used in accordance with the charitable objects at the discretion of the Trustees.

Designated funds represent funds invested in fixed assets which are held to earn returns to enable the charity to achieve its charitable aims.

1.3 Income recognition All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

1.4 Financial instruments accounting policy

The charity has financial assets and financial liabilities that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Investments in non-convertible preference shares and in non-puttable ordinary and preferences shares are

measured:

fair value can otherwise be measured reliably.

Page 8

THE PACK FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED YEAR ENDED 31 MARCH 2022

1.5 Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

1.7 Grants

The charity has or may make charitable donations or grants in the form of specific donations to local, national or international charitable causes. Grants payable are charged in the year when the offer is conveyed to the recipient except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

1.8 Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

1.9 Tax

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

1.10 Going concern

The financial statements have been prepared on a going concern basis as the Trustees believes that no material uncertainties exist. The Trustees has considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

1.11 Judgements and key sources of estimation uncertainty

Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. There are no areas of judgements or estimation uncertainty.

1.12 Cash at bank and in hand

Cash or other highly liquid and/or short term investments held within the investment portfolio managed by Investment Managers are not deemed as cash, as only held for the purpose of optimising outcomes from the investment portfolio - see also note 1.6

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THE PACK FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - CONTINUE

YEAR ENDED 31 MARCH 2022

2 Direct charitable expenditure 2022 2021
£ £
General grants;
Royal British Legion 20,000
Porchlight 15,000 10,000
British Red Cross 10,000
UNHCR UK 10,000
Prostate Cancer 5,000 5,000
Demelza 5,000 5,000
King's College Hospital Charity 5,000
Royal Marsden Cancer Charity 3,600
Kent Community Foundation 2,473 8,082
NSPCC 2,004 2,004
World Land Trust 20,000
Young Lives Foundation 10,000
Good Chance Theatre 5,000
Pilgrims Hospice 2,000
NHS Together 1,000
Kent Mining Heritage Foundation - donation returned in current year (15,000)
Other sundry grants 2,980 830
81,057 53,916
3 Other expenditure 2022 2021
£ £
Accountants remuneration 1,844 1,380
Professional fees 886 662
2,730 2,042

Included within 'Accountants remuneration' are Independent Examiners fees of £1,844 (2021 £1,380)

4 Trustees' remuneration

The Trustees received no remuneration or reimbursement during the year (2021: None).

The Trustees consider themselves and Simon Whitehouse comprise the Key Management Personnel of the

charity in charge of directing and controlling, running and operating the charity on a day to day basis. All Trustees give of their time freely and no Trustee received remuneration in the year. Simon Whitehouse is an external consult ant.

As noted above no Trustees received any remuneration during the year (2020: £nil) and amounts due to Key

Management Personnel in the year amounted to £886 (2021: £664).

5 5.1

5.2

Fixed assets investments Quoted investments comprise:
Fixed assets investments 2022 2021
Quoted investments comprise: £ £
Bank and cash deposits 36,811 19,741
Coutts Bank Charity Portfolio (note 5.2) 1,818,542 1,763,093
1,855,353 1,782,834
Quoted investments 2022 2021
£ £
At 1 April 2021 1,763,093 1,333,489
Additions 759,555 1,395,351
Disposals (799,697) (1,344,986)
Net realised and unrealised investment (losses) / gains 95,591 379,239
At 31 March 2022 1,818,542 1,763,093

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THE PACK FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - CONTINUEE YEAR ENDED 31 MARCH 2022

5 Fixed assets investments Fixed assets investments 2022 2021
£ £
5.3 Cost at31March 1,682,568 1,645,621
Holdings in investments at31March, which are material in value are:
Coutts US ESG Insights Equity Fund 323,926
Equator UK Sov Debt fund 233,788 222,755
Coutts Europe Actively Managed US Equity Index 177,860 133,780
Fund iShares FTSE 100 UCITS ETF GBP 144,271 128,902
Coutts Europe Actively Managed UK Equity Index Fund 140,050 199,949
Coutts UK ESG Insights Equity Fund 118,728
Invesco European Equity Fund 64,423 15,551
Capital International Fund New Perspective Fund
Neuberger Berman Short Duration Emerging Mkt
Debt Coutts US ESG Insights Equity Fund (hedged)
UBS China Fixed Income
Legal & General Health and Pharma
Royal London sustainable leaders
Robeco Capital growth - Emerging Stars
Schroder Income Fund GBP
Artemis UK Select Fund GBP
Vangaurd Emerging Markets Stock Index
Xtrackers - MSCI Japan
Coutts Europe US Equity Index Fund		 57,739
45,056
43,757
43,404
41,869
39,009
37,307
36,996
35,170
29,146
28,887		 52,220
17,426
34,478
30,470
39,172
41,082
59,852
50,896
260,968
Coutts actively managed global inv grade credit fund C GBP Hedged 67,836
Coutts Europe ex UK Equity Index Fund
Multi Units Lyxor ETF S&P500£ daily hedged
Vanguard FTSE All Share Index GBP		 63,636
63,325
36,037
6 Debtors 2022 2021
£ £
Gift Aid 618 5169
7 Cash at bank 2022 2021
£ £
Bank and money market deposits 12 079 41433
8 Creditors:amounts falling due within one year 2022 2021
£ £
Accruals and deferred income 2 708 2 264
9 Financial instruments 2022 2021
£ £
Financial assets measured at fair value 1,818,542 1,763,093
Financial assets measured at fair value comprise investments.

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THE PACK FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED YEAR ENDED 31 MARCH 2022

10 Unrestricted funds

Unrestricted funds - current year

Transfer
As at 1 April U nrealised between As at 31
2021 Income Expenditure gains **f unds ** March 2022
£ £ £ £ £ £
Unrestricted
.- General fund 44,338 3,093 (83,787) 46,345 9,989
Designated fund
- Fixed asset investment 1,782,834 31,834 (9,065) 96,095 (46,345 1,855,3 53
1,827,172 34,927 (92,852) 96,095 1,865,342
Unrestricted funds - prior year
Transfer
As at 1 April Unrealised between As at 31
2020 lricome Expenditure gains funds March 2021
£ £ £ £ £ £
Unrestricted
- General fund 52,886 25,881 (55,958) 21,529 44,338
Designated fund
- Fixed asset investment 1
,405,7 13		 27,384 (7,973) 379,239 (21,529) 1,782,8 34
1,458,599 53,265 (63,931) 379,239 1,827,172

Transfer between funds

The transfer between the designated and general funds represents the transfer of the movements on the fixed

asset funds for the year.

Purpose of designated fund

The fixed asset investments fund is held to earn returns to enable the charity to achieve its charitable aims.

11 Related party transactions

During the year £2,470 of donations were received from J Pack (2021: J Pack, a trustee, donated £20,677 in cash), shown as donations received in the Statement of Financial Activities. No donations were received subsequent to the period end.

Page 12