## 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**|Gerald**N**Pack|
|---|---|
||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. 

Page2 



## **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; 

- Maximise the long term returns of the investments of the charity and seek further incoming donations 

- Identify and evaluate local, national and international charitable causes 

- Utilise charity funds to further those causes identified 

## **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. 

Page3 



## **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 

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

3. 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|
|Fund**balances  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. 

- **1.2 Funds accounting** 

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. 

- Income from investments and deposits is taken to revenue in the period in which the income is received. - Donations and gift aid are accounted for on a receivable basis. 

- Income tax recoverable in relation to donations received under Gift Aid is reocognised at the time of donation. 

## **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: 

- At fair value with changes recognised in the statement of financial activities and are publicly trade or their 

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: 

   - Charitable expenditure comprises those costs  incurred  by the charity in the delivery of its activities and services for its beneficiaries.  It  includes both costs allocated directly to such activities and those costs of an indirect nature necessary to support them. 

   - Expenditure on raising funds includes all expenditure incurred by a charity to raise funds for its charitable purposes. 

   - Other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its charitable activities. 

- **1.6 Investments** Investments (including cash or other highly liquid and/or short term investments within the portfolio) are included at market value at the year end. Gains and losses on the revaluation and disposal of investments are reflected in the Statement of Financial Activities. 

## **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** 

- Balances held in current account or deposit accounts immediately available to the Trustees are shown as cash. 

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 

Page9 



## **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|



Page 10 



## **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<br>Neuberger Berman Short Duration Emerging Mkt<br>Debt Coutts US ESG Insights Equity Fund (hedged)<br>UBS China Fixed Income<br>Legal & General Health and Pharma<br>Royal London sustainable leaders<br>Robeco Capital growth - Emerging Stars<br>Schroder Income Fund GBP<br>Artemis UK Select Fund GBP<br>Vangaurd Emerging Markets Stock Index<br>Xtrackers - MSCI Japan<br>Coutts Europe US Equity Index Fund|57,739<br>45,056<br>43,757<br>43,404<br>41,869<br>39,009<br>37,307<br>36,996<br>35,170<br>29,146<br>28,887|52,220<br>17,426<br>34,478<br>30,470<br>39,172<br>41,082<br>59,852<br>50,896<br>260,968|
|||Coutts actively managed global inv grade credit fund C GBP Hedged||67,836|
|||Coutts Europe ex UK Equity Index Fund<br>Multi Units Lyxor ETF S&P500£ daily hedged<br>Vanguard FTSE All Share Index GBP||63,636<br>63,325<br>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.|||



Page 11 



## **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<br>,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