**Charity Registration No. 1141159**
**JOHN JACKSON CHARITABLE TRUST ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021**
## **JOHN JACKSON CHARITABLE TRUST**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|Mrs M S Downey|
|---|---|
||Mr A J Leaper|
||Mr C P Freeman|
|**Charity number**|1141159|
|**Principal address**|29 Beverington Road|
||Eastbourne|
||East Sussex|
||BN21 2SA|
|**Accountants**|Plummer Parsons|
||18 Hyde Gardens|
||Eastbourne|
||East Sussex|
||BN21 4PT|
|**Auditor**|Manningtons|
||39 High Street|
||Battle|
||East Sussex|
||TN33 0EE|
|**Bankers**|Barclays Bank PLC|
||PO Box 779|
||Eastbourne|
||East Sussex|
||BN21 3PQ|
|**Solicitors**|McCarthy Webb Limited|
||McCarthy Webb|
||21 Wish Road|
||Eastbourne|
||East Sussex|
||BN21 4NX|
|**Investment advisors**|Quilter Cheviot Limited|
||Senator House|
||85 Queen Victoria Street|
||London|
||EC4V 4AB|
## **JOHN JACKSON CHARITABLE TRUST**
## **CONTENTS**
||**Page**|
|---|---|
|Trustee report|1 - 3|
|Statement of trustee responsibilities|4|
|Independent auditor's report|5 - 7|
|Statement of financial activities|8|
|Statement of financial position|9|
|Notes to the financial statements|10 - 22|
## **JOHN JACKSON CHARITABLE TRUST**
## **TRUSTEE REPORT**
## _**FOR THE YEAR ENDED 5 APRIL 2021**_
The trustees present their report and accounts for the year ended 5 April 2021.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Will trust founding the charity, 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 (FRS 102) (effective 1 January 2019)” (the Charities SORP).
## **Objectives and activities**
The trust was endowed by a residuary bequest from the estate of the late John Alan Jackson. The assets comprised in the bequest are not expendable by the trust and are held in a permanent endowment fund. The trust's object is to apply the income from the endowment fund for charitable purposes for the benefit of the community of Eastbourne, East Sussex, and for such charitable purposes generally as the trustees may determine.
The trustees have complied with the duty in section 17(5) of the Charities Act 2011 to have due regard to the guidance issued by the Charity Commission on Public Benefit in deciding what activities the trust should undertake.
The trust has established its grant making policy to achieve its object for the benefit of the community of Eastbourne and for such charitable purposes generally as the trustees may determine. It will principally support charities and community bodies operating in the fields of education, heritage, social welfare, disability, community arts, community sports, and animal welfare. The charity invites applications for grant funding through its website www.johnjacksoncharitabletrust.org.uk for projects which will benefit the community of Eastbourne, particularly in these fields.
## **Achievements and performance**
In furtherance of the charity’s objective, the trustees review grant applications received, selecting for grant award from those which conform with the charity’s objective. When considered appropriate, a trustee will visit potential grantees to discuss their organisation or project in more detail to ensure that the charity’s objective will be met and that the grant will enable public benefit to be achieved. The trustees request grantees to report what has been achieved with the grant, and also have a policy of reviewing the completion of major projects which are funded by grants from the charity. Photographs of some of the projects and charities funded can be seen on our website www.johnjacksoncharitabletrust.org.uk.
As detailed in Note 5 to the accounts below, charitable grants were made during the year to 43 charities and community organisations, and 1 individual totalling £306,430 (2020 £227,575) to enable them to carry out or enhance their activities for the benefit of the public. The allocation of grants during the year was:
|Education
Heritage
Social Welfare
Disability
Community Arts
Community Sports
Animal Welfare
Individuals
Total|**2021**
93,658
35,650
108,522
10,500
45,200
12,000
-
900
306,430|**2020**
86,617
-
72,921
17,916
20,000
21,106
7,000
2,015
227,525|**2020**|
|---|---|---|---|
The trustees have continued a programme of renovation and repair of its investment properties in order to let those properties for income purposes.
- 1 -
## **JOHN JACKSON CHARITABLE TRUST**
## **TRUSTEE REPORT (CONTINUED)** _**FOR THE YEAR ENDED 5 APRIL 2021**_
## **Financial review**
The Will Trust permits the charity's funds to be invested in a wide variety of investments including land.
The trustees' policy is to invest the endowment fund approximately 80% in residential properties for let and 20% in a portfolio of listed securities and collective investment funds, within the range approved for charities by section 558 Income Tax Act 2007. The investment policy for the portfolio is “capital growth” with a view to growing the inflation adjusted real value of the permanent endowment fund over the long term to enhance future grant giving capacity.
The incoming and outgoing resources of the trust are shown in the statement of financial activities on page 8. The balance carried forward at 5 April 2021 on the unrestricted fund was overdrawn £(12,087) (2020 positive £47,696), and on the endowment fund was £16,062,947 (2020 £13,992,685).
Unrestricted income is made up of rental income from the portfolio of investment properties, dividends and interest received from the investment portfolio, and bank deposit interest. Gross rental income for the year was £374,895 (2020 £377,781). Income from the portfolio’s listed investments in the year was £64,843 (2020 £81,845). Bank deposit interest was £39 (2020 £188).
The investment properties at 5 April 2021 were valued at £12,680,001 (2020 valuation £11,430,001). The portfolio plus cash held for investment at 5 April 2021 was valued at £3,386,462 (2020 £2,565,789).
The trustees have assessed the major risks to which the trust is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The trustees have assessed the impact of the regulations controlling activities in response to the Covid-19 pandemic. At the time of approving the financial statements, the impact of the Covid-19 regulations on the charity’s sources of income in the current year has not reduced the charity’s income. The trustees have a reasonable expectation that the trust has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **Plans for future periods**
The trustees intend to continue managing the permanent endowment fund with a view to generating income to enable the charity to maintain its grant giving activities while also seeking to increase the inflation adjusted real value of the permanent endowment fund over the long term to enhance future grant giving capacity.
## **Structure, governance and management**
The trust was established by the Will of the late John Alan Jackson who died on 24 December 2010. The trust is registered in the United Kingdom by the Charity Commission as John Jackson Charitable Trust, and the Charity Commission registered number is 1141159. The charity’s principal office is at 29 Beverington Road, Eastbourne, BN21 2SA.
The trustees who served during the year and up to the date of signature of the financial statements were: Mrs M S Downey Mr A J Leaper Mr C P Freeman
There were no changes to the trustees during the year. The trustees review the skills and competencies required for the board of trustees, and where a requirement is identified they initiate a recruitment process. New trustees are appointed by, and receive training from, the existing trustees. There is no formal training programme.
- 2 -
## **JOHN JACKSON CHARITABLE TRUST**
## **TRUSTEE REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 5 APRIL 2021**_
The charity is managed by the trustees who met on 3 occasions during the year to consider the key operational areas of grant making, investment, reserves and risk management. The trustees also have frequent informal communication on operational matters throughout the year.
The charity holds its bank accounts with Barclays Bank Plc. The charity has appointed stockbrokers, Quilter Cheviot Limited, to manage its investment portfolio on the discretionary management basis and in accordance with the investment policy “capital growth”. The portfolio assets are held in custody for the charity by Quilter Cheviot Limited’s wholly owned nominee companies or unaffiliated approved custodians, see: https://www.quiltercheviot.com/siteassets/documents/terms-and-conditions/os010160-qc-terms-conditions-uk.pdf for full details of Quilter Cheviot Limited’s custody arrangements.
The trustee report was approved by the Board of Trustees.
Mrs M S Downey
## **Trustee**
17 December 2021
- 3 -
## **JOHN JACKSON CHARITABLE TRUST**
## **STATEMENT OF TRUSTEE RESPONSIBILITIES**
## _**FOR THE YEAR ENDED 5 APRIL 2021**_
The trustees are responsible for preparing the Trustee Report and the accounts 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 accounts for each financial year which give a true and fair view of the state of affairs of the trust and of the incoming resources and application of resources of the trust for that year.
In preparing these accounts, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the accounts; and
- prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the trust and enable them to ensure that the accounts comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed.
They are also responsible for safeguarding the assets of the trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
- 4 -
## **JOHN JACKSON CHARITABLE TRUST**
## **INDEPENDENT AUDITOR'S REPORT**
## **TO THE TRUSTEES OF JOHN JACKSON CHARITABLE TRUST**
## **Opinion**
We have audited the financial statements of John Jackson Charitable Trust (the 'charity') for the year ended 5 April 2021, which comprise the Statement of Financial Activities, Balance Sheet, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).
- In our opinion, the financial statements:
- give a true and fair view of the state of the charity's affairs as at 5 April 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **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 trust 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 trustee use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The trustee is responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
- 5 -
## **JOHN JACKSON CHARITABLE TRUST**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF JOHN JACKSON CHARITABLE TRUST**
## **Matters on which we are required to report by exception**
In the light of our knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustee's Report.
We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the trustee report; or
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- 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 trustee responsibilities, the trustees 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 charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to 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 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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.
## **Detecting irregularities, including fraud**
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.
The detection of fraud and irregularities is a primary consideration of the audit planning and is carried through to the audit completion stage. A risk assessment and preliminary analytical review is undertaken at the planning stage and areas of concern are then built into the audit strategy and testing to ensure sufficient procedures and evidence is obtained to give comfort that material irregularities and potential instances of fraud are detected where possible.
The audit team is briefed regarding any areas or concern, the potential audit risks and consequential impact. The audit team remained vigilant throughout their work and key management and finance personnel were consulted on any known or suspected breaches in laws and regulations along with misappropriation of funds at both the planning and completion stages of the audit. Due consideration was given to the possible use of management override and this was built into our audit strategy.
- 6 -
## **JOHN JACKSON CHARITABLE TRUST**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF JOHN JACKSON CHARITABLE TRUST**
The purpose of the preliminary analytical review of the financial statements is to highlight any possible areas of concern to investigate whether the variance is expected or unexpected, based on the information obtained as part of the planning process and the current climate the charity is operating in. This exercise is then re-performed at the completion stage.
Relevant audit tests are planned to assist in the detection of any misappropriation of funds by way of fraud, or misstatements. Latest accounts disclosure checklists available are also completed to ensure the accounts comply with the latest reporting framework that is applicable to the charity.
There are aspects of the audit which are deliberately unpredictable to assist in the detection of irregularities, such as varying how we test items which are more susceptible to fraud, year on year and by incorporating systematic sampling over the populations tested.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://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 charity trustee, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our work has been undertaken so that we might state to the trustee those matters we are required to state to trustee in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustee as a body, for our audit work, for this report, or for the opinions we have formed.
## **Manningtons**
20 December 2021
## **Chartered Accountants Statutory Auditor**
39 High Street Battle East Sussex TN33 0EE
Manningtons 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.
- 7 -
## **JOHN JACKSON CHARITABLE TRUST**
## **STATEMENT OF FINANCIAL ACTIVITIES**
## _**FOR THE YEAR ENDED 5 APRIL 2021**_
|**Unrestricted Endowment**
**fund**
**fund**
**2021**
**2021**
**Notes**
**£**
**£**
**Income from:**
Income from
investments
**3**
439,777
-
**Expenditure on:**
Raising funds
**4**
130,283
13,871
Charitable activities
**6**
369,277
-
**Total charitable expenditure**
369,277
-
**Total resources**
**expended**
499,560
13,871
Net gains/(losses) on
investments
**10**
-
2,084,133
**Net movement in funds**
(59,783)
2,070,262
Fund balances at 6
April 2020
47,696
13,992,685
**Fund balances at 5**
**April 2021**
(12,087) 16,062,947|**Total** Unrestricted Endowment
fund
fund
**2021**
2020
2020
**£**
**£**
**£**
439,777
459,814
-
144,154
134,305
13,489
369,277
285,436
-
369,277
285,436
-
513,431
419,741
13,489
2,084,133
-
(343,051)
2,010,479
40,073
(356,540)
14,040,381
7,623
14,349,225
16,050,860
47,696
13,992,685|Total
2020
**£**
459,814
147,794
285,436
285,436
433,230
(343,051)
(316,467)
14,356,848
14,040,381|
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 8 -
## **JOHN JACKSON CHARITABLE TRUST**
## **STATEMENT OF FINANCIAL POSITION**
## _**AS AT 5 APRIL 2021**_
|**Notes**
**Fixed assets**
Property, plant and equipment
**11**
Investment properties
**12**
Investments
**13**
**Current assets**
Trade and other receivables
**15**
Cash at bank and in hand
**Current liabilities**
**16**
Net current (liabilities)/assets
**Total assets less current liabilities**
**Capital fund**
Endowment fund
**17**
**Income fund**
Unrestricted fund|**2021**
**£**
**£**
-
12,680,001
3,386,462
16,066,463
12,277
168,041
180,318
(195,921)
(15,603)
16,050,860
16,062,947
(12,087)
16,050,860|**2020**
**£**
**£**
902
11,430,001
2,565,789
13,996,692
3,055
78,926
81,981
(38,292)
43,689
14,040,381
13,992,685
47,696
14,040,381|**2020**
**£**
**£**
902
11,430,001
2,565,789
13,996,692
3,055
78,926
81,981
(38,292)
43,689
14,040,381
13,992,685
47,696
14,040,381|
|---|---|---|---|
||||13,996,692
43,689|
||||14,040,381|
||||13,992,685
47,696|
||||14,040,381|
The financial statements were approved by the Trustees on 17 December 2021
Mrs M S Downey **Trustee**
- 9 -
## **JOHN JACKSON CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 5 APRIL 2021**_
## **1 Accounting policies**
## **Charity information**
John Jackson Charitable Trust is an unincorporated charity governed by the Will of the late John Alan Jackson who died on 24 December 2010. It is registered with the Charity Commission under charity number 1141159. The principal address is 29 Beverington Road, Eastbourne, East Sussex, BN21 2SA.
## **1.1 Accounting convention**
The accounts have been prepared in accordance with the trust'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 (FRS 102)” (as amended for accounting periods commencing from 1 January 2019). The trust is a Public Benefit Entity as defined by FRS 102.
The trust has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the trust. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the trust has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.
The trust was endowed by a residuary bequest from the estate of the late John Alan Jackson. The assets comprised in the bequest are not expendable by the trust and are held in a permanent endowment fund.
The trust's object is to apply the income from the endowment fund for charitable purposes for the benefit of the community of Eastbourne, East Sussex, and for such charitable purposes generally as the trustees may determine.
## **1.4 Incoming resources**
Income is recognised when the trust is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. The charity's income consists of rents received from the letting of investment properties and investment income from the investment portfolio.
## **1.5 Resources expended**
Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category, and includes attributable VAT which cannot be recovered.
Expenditure on raising funds consist of investment management costs for management of the investment portfolio, and all costs relating to the upkeep and management of investment properties.
- 10 -
## **JOHN JACKSON CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 5 APRIL 2021**_
## **1 Accounting policies**
## **(Continued)**
Expenditure on charitable activities include overhead costs incurred in carrying out the activities of the charity.
Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice.
Grants payable are payments to third parties in furtherance of the charitable activities of the trust. Expenditure on grants is recorded once the trust has made an unconditional commitment to pay the grant and this is communicated to the beneficiary or the grant has been paid, whichever is the earlier.
## **1.6 Property, plant and equipment**
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures, fittings & equipment 25% straight line basis
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
All expenditure on new assets is capitalised.
## **1.7 Investment properties**
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
## **1.8 Non-current investments**
Investments, including investment properties, are included in the balance sheet at their open market value. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year. Realised gains and losses on investments are calculated as the difference between the sale proceeds and opening market value (or cost if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and opening market value (or cost if later).
## **1.9 Impairment of non-current assets**
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
## **1.10 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.
- 11 -
## **JOHN JACKSON CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 5 APRIL 2021**_
## **1 Accounting policies**
## **(Continued)**
## **1.11 Financial instruments**
The trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the trust's balance sheet when the trust becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including trade and other payables and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the trust’s contractual obligations expire or are discharged or cancelled.
## **1.12 Foreign exchange**
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in net income/(expenditure) for the period.
## **2 Critical accounting estimates and judgements**
In the application of the trust’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The principal estimates and assumptions concern the valuation of investment properties, investments, trade and other receivables.
- 12 -
## **JOHN JACKSON CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 5 APRIL 2021**_
## **2 Critical accounting estimates and judgements**
## **(Continued)**
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **3 Income from investments**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**fund**|fund|
||**2021**|2020|
||**£**|£|
|Rental income|374,895|377,781|
|Income from listed investments|64,843|81,845|
|Interest receivable|39|188|
||439,777|459,814|
All investment income within charitable activities was unrestricted for both the current and comparative year.
- 13 -
## **JOHN JACKSON CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 5 APRIL 2021**_
## **4 Raising funds**
|**Unrestricted Endowment**
**fund**
**fund**
**2021**
**2021**
**£**
**£**
Property management
costs
Property rental repairs
87,573
-
Staff costs
5,100
-
Property legal and
professional fees and
rent review costs
23,417
-
Property insurance and
miscellaneous costs
14,193
-
Trading costs
130,283
-
Investment management
costs
Legal and
professional
-
474
Fund manager costs
-
13,175
(Profit)/loss on
foreign currency
translation
-
222
-
13,871
130,283
13,871|**Total** Unrestricted Endowment
fund
fund
**2021**
2020
2020
**£**
£
£
87,573
83,246
-
5,100
5,100
-
23,417
32,352
-
14,193
13,607
-
130,283
134,305
-
474
-
443
13,175
-
13,161
222
-
(115)
13,871
-
13,489
144,154
134,305
13,489|Total
2020
£
83,246
5,100
32,352
13,607
134,305
443
13,161
(115)
13,489
147,794|
|---|---|---|
- 14 -
## **JOHN JACKSON CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 5 APRIL 2021**_
## **5 Grants awarded**
|Grants to institutions:
**Education**
Cavendish School
Gildredge House School
Ocklynge School
Pashley Down Infant School
St Catherine's College
St John's Meads CE Primary School
Tollgate Community Junior School
**Heritage**
Christchurch with St Phillips PCC Eastbourne
Eastbourne Society
Friends of Motcombe Gardens - Dovecote archaeology
St Mary's Church, Willingdon
**Social welfare**
A Band of Brothers
Amaze East Sussex
Care for the Carers Ltd
Chaseley Trust
Chestnut Tree House, Eastbourne
Children with Cancer Fund (Polegate)
Community Stuff
Community Wise
Devonshire Collective
Eastbourne Field Gun CIC
Eastbourne Foodbank
Eastbourne Networx
Emmanuel Church, Eastbourne
Family Support Work
JPK Project
Just Friends
Leaf Hall CIO
Multiple Systom Atrophy Trust
People Matter
Police Community Clubs
St Michaels and All Angels Faith Hut project
St Wilfrid's Hospice
Underwired
Wilderlife Wellbeing
Willingdon Community Hub Library
You Raise Me Up|**2021**
**£**
1,000
-
8,000
12,510
69,648
2,500
-
93,658
2,000
30,000
1,650
2,000
35,650
-
-
2,000
3,000
1,000
2,500
3,000
900
3,000
-
-
6,100
2,000
1,000
3,000
-
40,000
500
17,160
2,800
3,000
1,500
-
1,000
14,312
750
108,522|**2020**
**£**
-
3,178
-
-
73,439
-
10,000|
|---|---|---|
|||86,617|
|||-
-
-
-|
|||-|
|||20,000
4,000
2,000
-
1,000
1,000
3,250
-
-
5,000
5,000
-
2,000
-
-
750
-
1,346
14,436
2,800
-
5,000
480
500
4,359
-|
|||72,921|
- 15 -
## **JOHN JACKSON CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 5 APRIL 2021**_
|**5**
**Grants awarded**
**Disability**
Aspens - charity for Asperger's/ Autism
Blind Veterans UK
Canine Partners
Deaf Blind
East Sussex Blind & Partially Sighted People
East Sussex Hearing Resources centre
Embrace Saturday Club
Epilepsy Sussex
Guide Dogs for the Blind
Hearing Dogs for the Deaf
Motor Neurone Disease, Eastbourne Branch
Myaware - support for suffers of Myasthenia Gravis
Sovereign Leisure Centre
Sussex Association for Spina Bifida & Hydrocephalus
**Community arts**
Act on it
Compass Community Arts
Towner Art Gallery
**Community sports**
Active Sports Ltd
Buzz Active
Eastbourne Bombers Softball Club
Eastbourne Borough Football Club
East Dean & Friston Cricket Club
Hampden Park Rangers Football Club
Hampden Park Tennis Club
Rainbow Wishes
Willingdon Cricket Club
**Animal welfare**
Raystede
**Total**
Grants to individuals|**(Continued)**
-
1,000
2,000
2,000
-
1,000
500
500
-
500
1,500
-
-
1,416
1,000
1,000
1,000
-
500
1,500
1,000
-
-
2,000
-
7,000
3,000
-
10,500
17,916
800
-
5,000
-
39,400
20,000
45,200
20,000
2,500
-
7,000
-
-
200
-
4,000
-
5,406
-
500
-
10,000
2,500
-
-
1,000
12,000
21,106
-
7,000
305,530
225,560
900
2,015
306,430
227,575|**(Continued)**
-
1,000
2,000
2,000
-
1,000
500
500
-
500
1,500
-
-
1,416
1,000
1,000
1,000
-
500
1,500
1,000
-
-
2,000
-
7,000
3,000
-
10,500
17,916
800
-
5,000
-
39,400
20,000
45,200
20,000
2,500
-
7,000
-
-
200
-
4,000
-
5,406
-
500
-
10,000
2,500
-
-
1,000
12,000
21,106
-
7,000
305,530
225,560
900
2,015
306,430
227,575|
|---|---|---|
|||17,916|
|||-
-
20,000|
|||20,000|
|||-
-
200
4,000
5,406
500
10,000
-
1,000|
|||21,106|
|||7,000|
|||225,560
2,015|
|||227,575|
- 16 -
## **JOHN JACKSON CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 5 APRIL 2021**_
## **6 Charitable activities**
|**Charitable**
**activities**
**Charitable**
**activities**
**2021**
**2020**
**£**
**£**
Grants awarded (see note 5)
306,430
227,575
Share of support costs (see note 7)
50,184
44,558
Share of governance costs (see note 7)
12,663
13,303
369,277
285,436|**Charitable**
**activities**
**Charitable**
**activities**
**2021**
**2020**
**£**
**£**
Grants awarded (see note 5)
306,430
227,575
Share of support costs (see note 7)
50,184
44,558
Share of governance costs (see note 7)
12,663
13,303
369,277
285,436|**Charitable**
**activities**
**Charitable**
**activities**
**2021**
**2020**
**£**
**£**
Grants awarded (see note 5)
306,430
227,575
Share of support costs (see note 7)
50,184
44,558
Share of governance costs (see note 7)
12,663
13,303
369,277
285,436|
|---|---|---|
||**2021**
**£**
306,430
50,184
12,663
369,277|**2020**
**£**
227,575
44,558
13,303|
|||285,436|
Expenditure on charitable activities was unrestricted for both the current and comparative year.
## **7 Support costs**
|Depreciation
Postage and stationery
Telephone
Office legal and
professional
Sundry expenses
Profit/ (loss) on foreign
currency translation
Audit fees
Legal and professional
Analysed between
Charitable activities|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
902
-
396
-
990
-
42,645
-
5,248
-
3
-
-
3,300
-
9,363
50,184
12,663
50,184
12,663|**2021**
**£**
902
396
990
42,645
5,248
3
3,300
9,363
62,847
62,847|Support
costs
Governance
costs
£
£
901
-
534
-
1,111
-
35,658
-
6,354
-
-
-
-
3,210
-
10,093
44,558
13,303
44,558
13,303|2020
£
901
534
1,111
35,658
6,354
-
3,210
10,093|
|---|---|---|---|---|
|||||57,861|
|||||57,861|
Governance costs includes payments to the auditors of £3,300 (2020- £3,120) for audit fees.
## **8 Trustees**
In accordance with the specific authority in the Will of the late John Alan Jackson, the trustees may charge their usual professional charges for time spent in the administration of the charitable trust. Note 19 discloses the amounts charged.
- 17 -
## **JOHN JACKSON CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 5 APRIL 2021**_
## **9 Employees**
The average monthly number of employees during the year was:
|The average monthly number of employees during the year was:|||
|---|---|---|
|Administrative
**Employment costs**
Wages and salaries|**2021**
**Number**
1
**2021**
**£**
5,100|**2020**
**Number**
1|
|||**2020**
**£**
5,100|
There were no employees whose annual remuneration was more than £60,000.
## **10 Net gains/(losses) on investments**
||**Endowment**|Endowment|
|---|---|---|
||**fund**|fund|
||**2021**|2020|
||**£**|£|
|Revaluation of properties|1,250,000|170,000|
|Revaluation of listed investments|731,077|(500,887)|
|Gain/(loss) on sale of listed investments|103,056|(12,164)|
||2,084,133|(343,051)|
Net gains on investments relate to the endowment fund for both the current and comparative year.
- 18 -
## **JOHN JACKSON CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 5 APRIL 2021**_
## **11 Property, plant and equipment**
|**11**|**Property, plant and equipment**||
|---|---|---|
|||**Fixtures, fittings & equipment**|
|||**£**|
||**Cost**||
||At 6 April 2020|9,634|
||At 5 April 2021|9,634|
||**Depreciation and impairment**||
||At 6 April 2020|8,732|
||Depreciation charged in the year|902|
||At 5 April 2021|9,634|
||**Carrying amount**||
||At 5 April 2021|-|
||At 5 April 2020|902|
|**12**|**Investment property**||
|||**2021**|
|||**£**|
||**Fair value**||
||At 6 April 2020|11,430,001|
||Net gains or losses through fair value adjustments|1,250,000|
||At 5 April 2021|12,680,001|
The investment properties were valued on 5 April 2021 by Leaper Stanbrook Ltd, Estate Agents, of which one of the trustees is a director, on an open market basis. No depreciation is provided in respect of these properties.
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
|Cost
Accumulated depreciation
Carrying amount|**2021**
**£**
8,197,957
-
8,197,957|**2020**
**£**
8,197,957
-|
|---|---|---|
|||8,197,957|
- 19 -
## **JOHN JACKSON CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 5 APRIL 2021**_
|**Investment property**||**(Continued)**|
|---|---|---|
||**2021**|**2020**|
||**£**|**£**|
|Freehold|12,680,001|11,430,001|
|Long leasehold|-|-|
|Short leasehold|-|-|
## **12 Investment property**
## **13 Fixed asset investments**
||**Listed**|
|---|---|
||**investments**|
||**£**|
|**Cost or valuation**||
|At 6 April 2020|2,565,789|
|Additions|488,500|
|Valuation changes|757,834|
|Increase/(Decrease) in cash held within the portfolio|20,898|
|Disposals|(446,559)|
|At 5 April 2021|3,386,462|
|**Carrying amount**||
|At 05 April 2021|3,386,462|
|At 05 April 2020|2,565,789|
## **Fixed asset investments revalued**
All investment assets are held by the charity's stockbroker, Quilter Cheviot Limited, in their safe custody arrangements. The market value of fixed asset listed investments includes cash held within the investment - portfolio of £44,270 (2020 £23,372).
|**14**
**Financial instruments**
**Carrying amount of financial assets**
Debt instruments measured at amortised cost
Equity instruments measured at cost less impairment
**Carrying amount of financial liabilities**
Measured at amortised cost|**2021**
**£**
11,066
3,386,462
195,921|**2020**
**£**
1,852
2,565,789|
|---|---|---|
|||38,292|
- 20 -
## **JOHN JACKSON CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 5 APRIL 2021**_
## **15 Trade and other receivables**
|**Amounts falling due within one year:**
Trade receivables
Other receivables
Prepayments and accrued income|**2021**
**£**
821
10,245
1,211
12,277|**2020**
**£**
633
1,219
1,203|
|---|---|---|
|||3,055|
Trade receivables represent amounts due from tenants.
All trade and other receivables relate to unrestricted funds in both the current and comparative year.
## **16 Current liabilities**
|**Current liabilities**|||
|---|---|---|
|Payments received on account
Other payables
Accruals and deferred income|**2021**
**£**
18,486
159,648
17,787
195,921|**2020**
**£**
19,556
5,027
13,709|
|||38,292|
Payments received on account represent rental income received in advance.
- Other creditors include £3,516 (2020 £3,103) related to the endowment fund, all remaining current liabilities relate to the unrestricted fund.
## **17 Endowment fund**
|**Balance at**
**6 April 2019**
**Resources**
**expended**
**£**
**£**
**Permanent endowment**
John Alan Jackson Will Trust
14,349,225
(13,489)
14,349,225
(13,489)|**Revaluations**
**gains and**
**losses**
**£**
(343,051)
(343,051)|**Balance at**
**6 April 2020**
**£**
13,992,685
13,992,685|**Resources**
**expended**
**£**
(13,871)
(13,871)|**Revaluations**
**gains and**
**losses**
**£**
2,084,133
2,084,133|**Balance at**
**5 April 2021**
**£**
16,062,947|
|---|---|---|---|---|---|
||||||16,062,947|
The unrestricted fund comprises income arising on the endowment fund, less expenses incurred, and can be used in accordance with the objects of the trust.
The endowment fund comprises assets endowed to the charity by a residuary bequest from the estate of the late John Alan Jackson who died on 24 December 2010. The endowment fund must be held permanently by the trust. Income arising on the endowment fund can be used in accordance with the objects of the trust and is included as unrestricted income. Any capital gains or losses arising on the endowed assets form part of the endowment fund.
- 21 -
## **JOHN JACKSON CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 5 APRIL 2021**_
|**18**
**Analysis of net assets between funds**
**Unrestricted**
**fund**
**Endowment**
**fund**
**2021**
**2021**
**£**
**£**
Fund balances at 5
April 2021 are
represented by:
Property, plant and
equipment
-
-
Investment properties
-
12,680,001
Investments
-
3,386,462
Current assets/
(liabilities)
(12,087)
(3,516)
(12,087) 16,062,947|**Total**
Unrestricted
fund
Endowment
fund
**2021**
2020
2020
**£**
£
£
-
902
-
12,680,001
-
11,430,001
3,386,462
-
2,565,789
(15,603)
46,794
(3,105)
16,050,860
47,696
13,992,685|Total
2020
£
902
11,430,001
2,565,789
43,689|
|---|---|---|
|||14,040,381|
## **19 Related party transactions**
During the year the trust entered into the following transactions with related parties:
Bookkeeping and professional services are provided to the charity by Crispin Freeman, Chartered - Accountant. The fees for the year were £16,188 (2020 £12,192). Amounts payable to Crispin Freeman, Chartered Accountant, at 5 April 2021 were £3,079 (2020 - £ Nil), and are included in note 16 current liabilities.
Legal and professional services are provided to the charity by Margaret Downey, Solicitors. The fees for the year were £49,971 (2020 - £49,536). Amounts payable to Margaret Downey, Solicitors, at 5 April 2021 were £ Nil (2020 - £ Nil ).
Professional services are provided to the charity by Leaper Stanbrook Ltd, of which A J Leaper is a director. - The fees for the year were £300 (2020 £300). Amounts payable to Leaper Stanbrook Ltd at 5 April 2021 were £300 (2020 - £600), and are included in note 16 current liabilities.
- 22 -