Company Registration No.. 7886189 Charity No.. 114499) THE GLASS-HOUSE TRUST ANNUAL REPORT AND FINANCIAL STATEMENTS 5 APRIL 2022 The Peak 5 Wilton Read London SWIV IAP THE GLASS-HOUSE TRUST 5 April 2022 CONTENTS PAGE Legal and administrative Report of the Trustees Statement of Trustees. Responsibilities Independent Auditor's Report 9-12 Statement of Financial Activities 13 Balance Sheet 14 Cash Flow Statement 15 Notes to the Accounts 16-27 Appendix to the Accounts 28 R¢pon ajd A¢¢ounts- 5 April 2022 THE GLASS-HOUSE TRUST 5 April 2022 LEGAL AND ADMINISTRATIVE The Glass-House Trust was fornied as a company limited by guarantee on 30 November 2011 and incolporated in th¢ United Kingdom. The company registration number is 7866189. The Trust was registered with the Charity Commission for England and Wales on 9 December 2011. The charity registration number is 1144990. Trustees/ Directors Alex Sainsbury Elinor Sainsbury Judith Portrait Registered Office The Peak 5 Wilton Road LondoTh SWIV IAP Princip21 Officers Karen Everett Matthew Williams Chief Executive Officer Executive Both are employed part-time Bankers Royal Bank of Scotland 119 - 121 Victoria Street London SWIE 6RA Solicitors Portrait Solicitors (to 31 July 2022) BDP Pitmans LLP (from l August 2022) 21 Whitefriars Street One Bartholomew Close London EC4Y 8JJ London ECIA 7BL Auditor Sayer Vincent LLP Invicta House 108 - 114 Golden Lane London ECIYOTL Investment Advisers Bordier & Cie (UK) PIC 79 Pall Mall London SWIY SES Report and Ac¢ounts-5 April 2022 THE GLASS-HOUSE TRUST S April 2022 REPORT OF THE TRUSTEES The Trustees present their report and the audited financial statements for the year ended 5 April 2022. Legal and administrative inforniation set out on page I fonn5 part of this TeporL The financial statements comply with current statutory requirements, the Trust deed, and the Statement of Recommended Practice Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102. Objeets The objects of the Trust as given in the memorandum and articles are for general charitable purposes. The Cu￿ent areas of interest are reflected in the grant-making activities, as detailed on page 5 of the Report of the Trustees. Organisation The Trust is one of the Sainsbury Family Charitable Trusts, which share a common administration. The Funder of the Trust is Alex Sainsbury. Trustees are appointed by ordinary resolution and are provided with relevant infonnation relating to their responsibilities as T￿￿tee5. The Tn￿le¢S are aware of the latest Charity Governance Code which sets out the principles and recommended practice for good govemance wiihin the sector. The Charity has reviewed its governance arrangements against the principles within the code and believes that it is compliant to an appropriate extent at the current titne. Trustees are aware of the Charity Commission guidance on charity and public benefit aThd confirm that they have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to it. They consider the full information which follows in this annual report, about the Trust's aims, activities and achievements in the many areas of interest that the Trust supports dernonstrates the Etnefit to its beneflciaries, and through them to the public, that arise from those activities. Fundraising Policy The Trust does not undertake fundraising from the general public and does not use professional fundraisers or commercial participators. The income of the Trust is not bound by any regulatory scheme. and the Trust does not consider it necessary to comply with any voluntary code of practice relating to fijndraising. We have received no complaints in relation to any ￿ndraising activities. As we do not approach individuals for the purpose of raistng funds. we do not have specific r4uirements related to fundraising activities, nor do we consider it necessary to design specific procedures to monitor such activities. Reserves Policy and going coneern It is the policy of the Trustees to approve grants for payment over a period of years. subject to certain conditions over the life of the grant. Those expected to be paid within twelve months of the year end are accrued in the accounts. whilst those due to be paid later than this are not accrued and represent funds eamiarked for continued support to certain existing beneficiaries. although ￿1p1¢ntS have not yet met the conditions of the grant. Cash flow PTojections for income and expenditure are regularly reviewed to ensure that the level of available reserves is adequate and that the Trust is in a position to meet all its commitments. Rerrt>rt Bnd Ac¢ounts- 5 April 2022 THE GLASS-HOUSE TRUST S April 2022 REPORT OF THE TRUSTEES (continued) The Trustees consider that when possible it is appropriate to hold free funds, both to meet the short-tenn working Capital needs of the Trust and in anticipalion of the potential payment of subsequent grant instalments. In the event that the Trustees find thernselves unable to meet current commitments from unrestricted reserves, they would be willing to draw on expendable endowment in order to meet those commitments, as they see fit. As at 5 April 2022. the Trust held total free funds of £8.6 million (2021: £9 rnillion), all of which is comprised entirely of expendable endowment. The Trustee5 are not aware of any mateTial uncertainties that would prevent the financial statements from being prepared on a going concern basis. Risk Assessment The Trustees have examined the rnajor strategic, business and operational risks to which the Trust may be exposed. Through the joint office of the Sainsbury Family Charitable Trusts, adequate systems are in place to meet such potential risks as the Trustees have identified. The Trustees continue to be vigilant and to keep processes under review. The Trustees identified the uncertainty of financial retums to constitute the charity's major financial risk. This is mitigated by having a diversified financial portfolio und¢r the management of a major investment house. The Trustees regularly review investment strategy and monitor financial perfomiance. Trustees have identified as a key risk the misuse of funds by a grant beneficiary. To mitigate this risk, funds are awarded following a thorough assessment and grants are regularly monitored. Grants awarded for more than one year are subject to annual review. Staff Remuneration The remuneration of the senior staff (including key management personnel) is reviewed by the Trustees on an annual basis taking into account the requirements of their Tole and perfomiance during the year. From time to time the SFCT Management Committee benchmarks pay levels against th¢ comparable positions in similar organisations. Investment Policy and Performane¢ Trustees meet with their investment managers regularly to discuss investtnent strategy and also to seek to ensure that the T￿St'S income requirements are met and that long term capital growth is in line with relevant indices. The Trustee5 nom]ally hold investments for the long term. During the period, the portfolio at a consolidated level increased in value, by 7.47 % (2021- increased by 13.6010). This compares with an increase in the ARC Sterling Balance Asset accoullt, which increased by 3.460/0 (2021: inereased by 17.860/0). The endowment assets of the Trust remain significant and these will continue to return income to the Trust. The level of income generated by the portfolio has now stabilised following the Covid-19 pandemic and the Trust will continue to pay out to its beneficiaries in accordance with the Trust's objects. The memorandum and articles of the Trust empoweT the Trustees to appoint investment advisers who have discretion to invest the funds of the Trust within guidelines ¢stablished by the T￿Stees. Review of the Past Year The net unrestricted expenditure of the Trust for the year after charging support costs was £1,147,493 {2021.. £521,188). The net assets of the Charity decreased from £10,077,066 at 5 April 2021 to £9,594,477 at 5 April 2022. a decrease of 4.70/0. Report and Acthints- 5 April 2022 THE GLASS-HOUSE TRUST 5 April 2022 REPORT OF THE TRUSTEES (continued) The Trustees met once during the yeaJ to make and review grants and twice more to review investment activity- During the year, grants to the value of £3,546,500 {2021: £nil) were approved. Grants are made to projects initiated by the Settlor or Trustees, including projects initiated jointly by the Truste¢s and the beneficiary ("Projects initiated by Trustees"), and projects drawn to T￿steeS, attention which they consider have particular merit ("Other projects"). Grants paid during the year may be analysed by number and by value in these two categories as follows: Grants Paid Value Projects initiated by Trustees Other Projects 436,500 69,000 505,500 Grants paid in 2021122 are listed on pages 5-7, together with a brief d¢s¢ription of the wider aims of each organisation supported. Future Plans The Trust will continue to support projects in accordance wilh the categories described above. Trustees do not foresee a significant change in projects supported in the next few years. GRANTS PAID PROJECTS INITIATED BY TRUSTEES - £436,500 A Space - £SS,000 Grant paid towards the Director's salary. A Space provides therapeutic support especially through creative activities for children within primary and secondary schools in Hackney. This pioneering project was set up by Trustees in 1998 and aims to foster children's emotional expression and development. Four Corner Books- £lOO,000 Towards ihe charity's running costs. This not-for-profit publisher seeks to bring art history to life. It aims to create a space to reflect on artists and creative outputs from the recent past that have been overlooked, and to chatnpion this creativity, in an accessible way. R¢portand A¢coUt￿- 5 April 2022 THE GLASS-HOUSE TRUST 5 April 2022 REPORT OF THE TRUSTEES (continued) Glass-House Community-Led Design - £106,500 Towards core costs and for its archive project (two grants). This project wa5 set up by Trustees in 2000 and established as an independent charity in 2006. It provides design advice to residents and communities participating in the regeneration of social housing, neighbourhood buildings, spaces and streets. The charity also train professionals and members of the public in participatory design for the built environment MayDay Rooms - £50,000 Towards ihe charity's running costs. MayDay Rooms is an educational archiving project based in London's Fleet Street, which was initiated in collaboration with the Glass-House Trust. MayDay Rooms finds ways to make publicly available, conserve and study archives and other historical material linked to social movements, experimental culture, and marginalised figure5 and groups. The work involves extensive transfer of fragile materials into digital forms, and exploration of these materials through workshops, public events, discussions, exhibitions, and the training up of '¢itizen archivists. Raven Row - £125,000 Towards the charity's numing Cosls. Raven Row is a contemporary art exhibition centre in Spitalfields. East London established in historic and award-winning contemporary buildings in 2009. Raven Row makes exhibitions of modern and contemporary art, which are free to the public to visit. Programmes of publications, discussions and events are organised alongside these exhibitions. In 2018. Raven Row entered a reflective period to assess its nine years of exhibition making and research a future programme. In the meantime, it will open up its galleries to a residency programme for young cornmunity and outreach-based artist groups. OTHER PROJECTS - £69,000 Con¢r¢te Action - £5,000 Towards a residency in Limehouse Town Hall. F* Choir- £2,000 Towards running costs. Healing Ju$tllce London - £5,000 Towards running costs. June Givanni Pan Afriean Cinema Arehive- £10,000 Towards the costs of cataloguing. Money for Madagascar- £22,000 Towards the falnine appeal in Madagascar, and for Akany Hasina lo cover extra costs and loss of income raising from the Covid-19 pandemic (2 grants). RepDrt Bnd Accounts- 5 Apnl 2022 THE GLASS-HOUSE TRUST 5 April 2022 REPORT OF THE TRUSTEES (continued) The Sainsbury Arehive - £5,000 Towards core costs. The Sainsbury Archlve, housed at the Museum of Docklands, documents the history of J Sainsbury plc from its foundation in Drury Lane in 1869, but also provides a unique record of the history of retailing since the mid-19th century and the impact of this on society- Transform Drug Policy Foundation - £15,000 Towards the charity's running costs. Drug policy is a matter of public concern which impacts on rnany people's lives directly and indirectly. Transforni highlights the negative social and economic costs of wholesale prohibition and encourages rational discussion of alternative approaches. Voice5 that Shake - £5,000 Towards th¢ charity's running costs. Report and A¢¢ounts- 5 April 2022 THE GLASS-HOUSE TRUST 5 April 2022 STATEMENT OF TRUSTEES, RESPONSIBILITIES The Trustees (who are also directors of The Glass-House Trust for the purposes of company law) are responsible for preparing the Trustees, annual report and the financial statements in accordmce with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial stat¢m¢nts for each financial y¢ar which give a true and fair view of the state of affairs of the charitable company and of the incoming resour¢es and appli￿tiOn of resources, including the income and expenditure, of the charitsb5e company for that period. In preparing these financial statements, the Trustees are required to= Select suitable accounting polici¢s 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 UK Accounting Standards and statements of recommended practice have been followed. subject lo any material departures dis¢losed and explained in the financial statement5. Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensur¢ that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and oiher irregularities. In so far as the Trustees are aware.. There is no relevant audit inforniation of which the charitable company's auditor is unaware. The Trustees have tsken all steps that they ought to have taken to make themselves aware of any releV￿t audit information and to establish that the auditor is aware of that inforniation. Approved by the Board on 24 November 2022 and signed on their behalf by: Alex Sainsbury- Settlor Rew and A¢eounts- 5 April 2022 THE GLASS-HOUSE TRUST S April 2022 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE GLASS- HOUSE TRUST OpiDion We have audited the financial statements of The Glass-House Trust (the 'charitable ¢ompany') for the year ended 5 April 2022 which comprise the statement of financial activities, balance sheet. statement of cash flows and notes lo the financial statements, including significant accounting policies. Thc financial reporting frdmework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion. the financial statcments= Give a true and fair view of the state of the charitable company's affairs as at 5 April 2022 and of its incoming resources and application of resources, including its income and expenditure for the year then ended Have been properly prepared in a￿OrdanCe with United Kingdom Generally Accepted Accounting Practice Have been prepared in accordance with ihe r¢quir¢m¢nts of the Companies Act 2006 Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) {ISAs (UK)) and applicable law. Our responsibilities urkder those standards ar¢ further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of th¢ charitable company in accordance with the ethi¢al requiremenls 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 cthical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going Concern In auditing the financial statements, we have Concluded that the Trustees, use of the going concern basis of accounting in the preparation of th¢ financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties rclating to events or ¢onditions that, individually or collectively, may cast significant doubt on The Glass-House Trust's ability to continue as a going concem for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. Other Information The other inforniation eomprises the inforniation included in the Trustees, annual report, other than the financial statements and our auditor's report thereon. Th¢ Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other infotination and, excepl to the extent othenvise explicitly ststed in our report, we do not express any form of assurance conclusion Ihereon. Our responsibility is to read the other information and. in doing so, consider whether the other infomiation is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or othenvise appears to be materially misststed. If we identify such material inconsistencies or apparent matrrial misstatements, we are required to Repw and Ac¢ount5- 5 Apiil 20r2 io THE GLASS-HOUSE TRUST 5 April 2022 deternine whether this gives rise to a rnaterial misstatement in the financial statements themselves. If, based on the work we have perfornied, we conclude that there is a material misstatement of this other inf0m￿tIOn, we are required to report that fact. We have nothing to report in this regard. Opinions on oth¢r matters pr¢s¢ribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit- The infonnation given in the Trustees, annual report for the financial year for which the financial stat¢ments are prepared is consistent with the financial statements. and The Trustees. annual report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees, annual report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion- Adequate accounting records have not been kept, or returns adequate for our audit have not been received frotn branches not visited by us. or The financial statements are not in agreement with the accounting records and retums. or Certain disclosures of Trustees, remuneration specified by law are not made" or We have not received all the information and explanations we require for our audit. or The directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies, exemptions in preparing the trustees. annual report and from the requirement to prepare a strategic report. Responsibilities of Trustees As explained more fully in the statement of Trustees, responsibilities set out in the Trustees. annual report, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement. wh¢ther due to fraud or e￿0[. In prepaTing the financial statements, the Trustees are responsible for assessing the charitable company'5 ability to continue as a going concem, disclosing. as applicable, matters related to going concem and using the going Concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations. or have no realistic alternative but to do so. Auditor'$ responsibilities for the audit of the financial statements Our objectives aTe to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or eLTor, and to issue an auditor's report that includes our opinion. Reasonable as5uranc¢ 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 aTise 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. R¢port ffjd Accounts- S Aprll 2022 li THE GLASS-HOUSE TRUST 5 April 2022 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 are set out IKIOW. Capability of the audit in detecting irregularities In identifying and a5se55ing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations. our procedures included the following: We enquired of management and the board of Trustees, which included obtaining and reviewing supporting documentation, concerning the charity's policies and procedures relating to: Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance. Detecting and responding to the risks of fraud and whether they have knowledge of any actual. suspected, OT alleged fraud. The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations. We inspected the Minutes of meetings of those Charged with govemance. We obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on those laws and regulations that had a material effect on the financial statements or that a fundamental effect on the operations of the charity from our professional and sector experience. We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit. We reviewed any reports made to iegulators. We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations. We perfornied analytical procedures to Identify any unusual or unexpected Telationships that may indicate risks of material misstatement due to fraud. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estirnates are indicative of a potential bias and tested significant transactions that are unusual or those outside the nornial course of business. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk in¢r¢ases the rnore that Compliance with a law OT regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to becorne aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error. as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A ￿rther description of our responsibilities is available on the Financial Reporting Council's website at- www.frc.org.uldauditorsresponsibilities. This description fornis part of OUT auditor's report. Report alld A¢counts- 5 April 2022 12 THE GLASS-HOUSE TRUST S April 2022 Use of our report This report is made solely to the charitable company's membeTS as a body. in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to slate to them in an auditor's report and for no other purpose. To the fullest extent perrnitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit worL for this report, or for the opinions we have fomied. Noelia Serrano (Senior statutory auditor) l December 2022 for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane. LONDON, ECI Y OTL R¢port and Acwllnts- 5 April 2022 13 THE GLASS-HOUSE TRUST 5 April 2022 STATEMENT OF FINANCIAL ACTIVITILS FOR THE YEAR ENDED 5 APRIL 2022 ReslaÉEd Total Funds 2021 Unrestricted Funds Expendable Endowment Total Funds 2022 Jvrtes lllcome from: Investments Bank deposit interest 175,993 27 175,993 27 Igi¢W 58 Total income and endowment$ 176,020 176.020 192202 EX￿ndit￿re on: Cost of rnising funds Investment management costs 25595 25.595 24.415 ChAritable 2etivitie$ Grant-maktng.. Grant expenditure Gov¢rnarKe and Support costs Cost of grant-making 1,011,500 110,398 1,121,898 1.0115 IIOJ98 1.121,898 395530 101243 496.773 Total expenditure 1121898 1147 493 521188 Net expellditu￿ before gains on investments (945,878) (25,595) (971,473) (328,986) Net gallls on investments Loss on foreign exchange 488,884 488,884 I J07,812 (35,780) Transfers between furmts 945,878 (945,878) Net movement in fvnds (482.589) (482,589) 943.046 Reconcilialion of thnds: Totsl funds brought fonvard PrK>r perk)d adjustment 10,077,066 10,077,066 9,449,712 (315,W2) 13 Total thnds brought forward (as restated) 10,077,066 10,077,066 9,134,020 Total tsnds carried fonvanl 9,594,477 9,594,477 10,077,066 The notes on pages 16 to 27 form part of these accounts. Rewrt and Account5-5 April 2022 14 THE GLASS-HOUSE TRUST 5 April 2022 BA￿NcE SHEET Company nurtb¢r. 7866189 AS AT 5 APRIL 2022 Reslaged 2021 Noles 2022 FIXED ASSETS Tang￿le fLKed assets Investments 964,106 9,436,353 10,400.459 1,036,697 9,109J05 10,146.002 CURRENT A&SETS Debtors Cash at bank and n hand 15271 336,756 352,027 120.145 120,145 CURRENT LIABILITIES Creditors - amounts falling due within l year 926,127) (420,963) NET CURRENT LIABILITIES {805,982) (68,936) NET ASSETS 9594.477 10,077,066 CAPITAL FUNDS Ex￿ndab￿ endowment Ji 9,594,477 10,077, INCOME FUNDS Unrestricted funds ij 9,594,477 10.077.066 The f[￿ncial statements were approved and authori8ed for tssue by Trustees on 24 November 2022 aThJ were signed on their behalFby . TRUSTEE The notes on ￿ageS 16 to 27 forni tArt of these accoutts. Rewrt ￿dAct￿ntS-s Apri12022 15 THE GLASS-HOUSE TRUST 5 April 2022 CASH FLOW STATEMENT FOR THE YEAR ENDED 5 APRIL 2022 RECONCItJATION OF EXPEf+4DITURE TO NET CASH oufFLOW FROM OPERATING AcfivITIES Re51aled 2021 2022 C&sh Ilows from op¢r#ting 4Ctivities Net cash used ID operatine aetivities 425 438 Cash from investing aetivities Dividends and income Purchase of investments Purchase of fLKed assets Sak of ￿veSttnents Net casb provided byl(used in) investing activities 176,020 (1127,843) 192202 {1854,765} (2.(K)7) 1.999279 {665291 2323,070 371247 Change in cash aTKI cash equivalents in the year Cash and cash equivaknts at the be8ll)nn8 of year Cash and cash equlvaknts at the end of the year {183220) 382205 198,985 (1,090.729) 1,476,485 385,756 Reconciliation of net eash used in operating #etivities 2022 2021 Nel movernent in fimds as statement of fmanckl activities Gall￿ (￿ u)vestments Dividends and in¢orne Exchange bsses Depreciatnn charge (In¢reas¢ydecrease n debti)rs Increase in creditors Net cash used n OF¢ratllig actwitrs (481589) (488,884) (176.020) 943,046 (IJ07812) (192202) 35,780 72,591 (12,740) 35,899 425,438) 72,591 15271 505,164 554,467 Analysls of the balanee of ¢ash 0$ showTh in th¢ hlance Sheet Change in ear 2022 2021 Cash at baTJk and in hand Cash balances heki by investment manager for reinvestment 120.145 78,840 198.985 336,756 45,449 3822OS (216,611) 33J91 (183220) The Ntes on pages 16 to 27 forni part of these aecoutrts. Rwrt andAwovnts- 5 Apnl 2Q 16 THE GLASS-HOUSE TRUST 5 April 2022 NOIES TO THE ACCOUNTS I. STATtrroRY The Charity is a company limiled by guarantee (registered number 7866189), which is incorpofdted and domiciled in the UK and is a publK benefit entity. The add￿SS of the regtstered olTJce is Th¢ Peal S Wilton Road, tA)ndon SW IV IAP. 2. PRINCIPAL AccouNfJNG POIJCIFS a) Basis of prepration The fmancial statements have been prepared in a¢¢ordan¢¢ wÉth Accounting and Reporting by Charsti¢s: State￿￿nt of ReCoM￿￿nded Practice appli¢abl¢ to Charities preparing their accounts in accordance with the F￿ancial Reporting Standard applicabk in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), The Financial Reporting Standard applicable ￿ the UK and Republic of Ireland {FRS 102) and th¢ Companies Act 2006. The financial statements have been prepar¢d to give a 'tnJe and fair view and have d¢parted from the Charities (Accounts and Reports) Regulations 21M)8 only to the extent required to provide a 'tTue and fair view,. This departure has involved following Accoullt￿g and Reporting by Chariti¢s preparing their accounts in accordance with the Financial Reporting Standard applicable in th¢ UK and Republic of Ireland (FRS102) rather than the Accounting &nd Reporting by Charities.. Siatement of RecoM￿￿nded Practice effective from l April 2(KJ5 which has since been withdrawn. The trust constitutes a public benef￿ entity as d¢fJned by FRS 102. Sn th¢ view of the Ttust¢¢s, there are no material uncertainties casting doubt on the going concem of the charity. Having assessed the TNst's f￿ancial position and plans for the foreseeable future, the Trnstees ar¢ satisfied that 1¢ remains appropriate to prepatE the financial statements on the going con¢em basis. The endowment assets of the Ttust renwin significant. and the Trust will continue to pay out to its benefjciaries in accordance wsth the Trust's objects. b) In¢ome (i) Income is shown gross which includes th¢ associated tax credit unless the taxso d¢duct¢d is considered irrecoverdble. Dividends are included by reference to their due dates. Interest is included when r¢c¢ivable. R¢port and Accoutts- 5 Apnl 2022 17 THE GLASS-HOUSE TRUST 5 April 2022 NOIES TO THE ACCOUNTS 2. ACCOUNTING POLICIES (¢oD¢ ...) c) EX￿ndi￿re on Charitable Actiiities E4)endilur¢ is recognised once there i8 a legal or consructive obligation to make a payment to a third party, it ts probable that settlell￿nt will be required and the aTYK)Ullt of the obligation can be measured reliably. Ey)enditure is claSsif￿d under the folk)W￿g activity headings. Costs of generating fvnds represent amounts paid to the Trusvs external investment advisors. Charitable activities e4)enditure comprises grdnts and donations awarded by the Trustees in accordance with the criteria set out in the Trust Deed, together with grant related support costs. (kants payable are made to third parties in furtherance of the charity s objects. Single or mulii-year grants are &¢counted for when either the recipient has a reasonable e>pectation that they will r¢c¢ive a grant and the trustees have agreed to pay the grdnt withoul condition. or the recipient has a reasonable e￿eCtatiOn thal they will receive a grant and that any condition attaching to the grant i% outside of the control of the charity. The view of the ITUStees is thal any instainpnts payabk within 12 nK)nths of the reporting date are ewected to b¢ paid regardless of the status of attached conditions and so these are accrued. Any paY￿EntS due in more than 12 months from the reporting date. where conditions e￿st that have not been nrt at the reporting date, are not accrued but are reported as an unaccrued fvtute commitment (see note 4). Grant related support costs ￿ present staff, office and governanc¢ costs in¢urred in managing the grant award progtamme. They include a share of the staff and office costs of the joint offices of the Sainsbury Family Charitable Trusts, which ale allocated in proportion to the time spent on Trust matters and grants paid. Cosls include a share of the staff and off￿e costs of the ￿>Int offices of Éhe Sainsbury Family Charitable Trusts, which are allocated in proportion to the time spent on Trust matters and granls paid. d) knTrEStments Investnrnts are a fornj of basic f]nancial in5trUrr￿nI and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date us ing the closing quoted market price. Any change in fair value will be recognised in the State￿Ent of fjnancial activities. Investment ga￿$ and losses, whether ￿￿liSed or unrealised, are combined and shown in the heading "Net ga￿s/{k)Sses) on investments" in the Staten￿nt of [￿ancIal activities. Th¢ charity does not a¢quw¢ put options. derivatives or other complex ffftan¢ial inslrunKnts. e) C(k8t of administration These costs tnclude a share of the staff and office Costs of the joint olT]ces of the Sainsbury Famity Charitable Trusts. whKh are allocated ￿ proportion to the til￿ sp¢nt on Trust mattets and grants paid. D Debtors Trade and other debtors are recognised at the Settle￿nt a￿Unt due after any trade disoount offtred. Prepayments are valued at the amount prepaid net of any trade discounts due. R¢w>rt and Accounts- 5 Aprs12022 18 THE GLASS-HOUSE TRUST 5 April 2022 NOTES TO THE ACCOUNTS 2. ACCOUNf]NG POLIC￿5 (cont...} g) Trlnancial Instruments Th¢ Trust has flllancial assets and fmancial liabilities of a kind that qualify as basic f￿anCIal inStrun￿nts. Basic fman¢ial instruments are initially recognised at transaction value and subsequently measured at their se11k￿nI value. Ftnancial assets held at amortised cost ¢ompris¢ cash al bank and in hand, together with accrued interest and other debtor5. Financial liabilities held at anyTrrtised cost comprise grdnts payable and accruals. h) Cash and cash equivalents Cash at bank and cash in hand includes cash and short t¢mi highly liquid investmenls with a short maturity of three months or less from the date of acquisition or opening of the depos it or similar account. i) Fixed gssetsldepreciation Itents of equipment are capitalised where the purchase pri¢¢ e￿eedS £5.IX)O. Depreciation costs a allocated to activities on the basi% of the use of the related assets in those activities. Assets are reviewed for impairn*nt if eircutttstances ind￿ate their canying value may eyLeed their net realisable value and value in use. Major components are treated as & separate asset where they have significantly different patterns of consumption of economic benefrts and are depreciated separately over its usefvl life. Fixed asscts ar¢ depreciated at rates whtch refftct the￿ useful life to the Trust. The following rat¢s have b¢en us¢d.. Fr¢¢hold property (h¢kl at ¢ost)- 50 years Freehold property I￿roVe[nentS - 10 years t£asehold tmprovenrnts 10 years strdight line for unprovements made in 2012, 7 years Straight line for improvements made in 2020 During the year a review of the depreciation rate policy was und¢rtak¢n. It was agreed that the d¢pff ¢ialion ral¢ for freehold property improvements should be reduced from 50 years to 10 years to better refft¢t the us¢fvl life of the additions. A prior period adjustnknt, as d¢tail¢d in note 13, has been made to Correct this. j) Credilors and provisions Creditors and provisions are recogniged where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and th¢ any)unl du¢ to settle the obligation can be measured or estimated reliably. Creditors and provisions are nonnally recognised at their Sett]en￿nt amount after allowing for any trdde di%counts due. k) Pensions Contributions lo defllled ¢ontribution plans are charged to th¢ statement of f￿ancial activitie5 the period to which they r¢lat¢. Report and A¢¢ounts- 5 ArKil 2022 19 THE GLASS-HOUSE TRUST 5 April 2022 NOTES TO THE ACCOUN13 2. ACCOi]f4TING POLIC￿5 (cont ...) l} Critical accounting ju(*ements and key sources of estimation uneertsinty In the application of the charity's ac¢ounting poli¢i¢s, which are des¢ribed &bov¢. Tn]st¢es are required to mke judgements. estimates and assumptions about the carying values of assets and IHbilities ihat are not readily apparent from other sources. The estimates and und¢rlying assumptK)ns are based on historical ewerience and other factors that are considered to be relevant. Actual resuks nmy differ from th¢s¢ estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised ￿ the perK)d in which the estimate is revised if the revision affects only that period, or in the perK>d of the revision and fiJtutE pertods if the revision afFects the cutTent and future periods. In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets and liabilitie5 at the balance sheet date are likely to result in a material adjustment to their carying amounts in the ne￿ fmancial year. Inco￿￿ received on inVest￿￿ntS may be analysed as follows: 2022 2021 Fixed Interest U.K. Equities Overseas equities 34.249 52,573 89,171 175,993 19 30 51 loo 44,076 73.950 74.118 192,144 23 38 39 loo Report and Accounts- 5 Apr%1 2022 20 THE GLASS-HOUSE TRUST 5 April 2022 NOIES TO THE ACCOUNTS 4. GIi4NIS PAYABLE 2022 2021 Reconciliation ofgrants ￿y#l￿t. Commitments at 6 April 2021 400.IMKI 375,000 Grants not accrued at 6 April 2021 Grants approved in the period Grants cancelled Crants not accrued at 5 April 2022 Grants pyaNe for the ￿rIOd 375,000 3,546,500 (45,000} (2,865,000 770,530 (3 75,000) 1,011,500 395.530 (hnts patd/r¢fund¢d during the period (505.500) (370.530) Con]mitments at 5 April 2022 906,000 400,000 Committllents tht S April 2022 #re ￿Yal￿e as follows: 2022 202J Within one y¢ar (note 10) 9t6,000 400,000 Commitments In addition to the amounts ¢ommitt¢d and accnjed noted above. the Ttustees have also authorised certain grnnts that are subject to the recipi¢nt fvlfilling certain conditions. The total amount authorised but not accrued as expenditure at 5 April 2022 was £2,865,000 (2021.. £375.000). A list of grants ￿Yable for the current and prior yeaT can te found in A￿nthx A OD ￿ge 28. Report A¢¢ounts- 5 April 2022 21 THE GLASS-HOUSE TRUST S April 2022 NOTrS TO THEAccouf415 S. SiJPPORT AND GOVEIU4ANCECOSTS Current yer Proiision of Aceomtnothation for charities CraDt- Making GoTrETngnc¢ Total 2022 Staff costs Share ofjoint offjce costs D￿ect costs including trdvel Legal and professional fe¢5 Depreciation Auditovs remuneration 10.142 8,846 1196 12,337 1,800 3.129 3,715 72,591 9,780 110,398 3,702 1.017 [3 71.574 9,780 11,989 25.036 Prior year {reslaled) Proirysion or Aecommodation for charities Grant- Making CO￿r￿anCe To141 2021 Staff costs sha￿ ofjou)i office costs Direct costs including travel gal and professional fees Depreciation Auditor's remuneration 8,472 6,297 2,024 10,496 6,297 548 3,288 72,591 8,023 101,243 71,574 1,017 8.023 10,047 71,574 19.622 No Trustee (2021.. none) r¢¢¢ived renwneration or was retinbuTsed eAp¢nses during the period fortheir services as trusiee. Included in auditor's remuneration i$- Fee for the completion of the 2021122 audit Under accrnal of19120 Corpordlion taxretum fee Under a¢CTual of 20121 Corporation taX￿tUrn fee Fee for the compkiion ofthe 2021122 Corpordtion taxr¢ium 7.080 60 9,780 Total fee5 for statutory audit weTe £5,9X) (2021.. £8,545) ey£luding VAT. Charges for the preparation of Co￿0ntion Taxretums, includfftg underaccural in PTKTrr years were £2,250 (2021.. £1.(MX)) excluding VAT. R¢port and A¢¢ounts- 5 April 2022 22 THE GLASS-HOUSE TRUST S April 2022 NOTFS It) THEAccour 6. ANALISIS OFSTAFFCOS13 2022 2021 Salaries and wages Social security costs Other pension cost5 10.196 1,167 974 8,607 972 917 10,496 The Twst is one of the Sall)sbury Family Charitabl¢ Ttusts which share a joint administration at the Registered Office. O.IO/o (2021- 0.20/y) of th¢ total support and administration costs of these tNsts have been allocated to the Glass House Tnjst. includll)g a proportionate share of the costs of employing the total number of staff setving in th¢ office in 2021122. The actual number of staff etnployed during the year was 7, all on a part-t]n￿ basis12020121.. 6)- This equates to 0.08 fijll-tinr employees 12020121.. 0.08). The Trust consider5 its key ￿nag¢n￿nI pe]sonnel to comprise the Principal oificers. The total employment benefits, including enwloy¢r pension Contributions to group personal pensions, of those key nwnagemeni personnel, wetE £2,201 (2020121.. £1488). No employc¢s of the charity eamed in e￿esS of £60,000 (2020121.. none). 7. TANGIBLE FIXED ASSEfs {reslaled) Freehold property Freehold rov¢n*nts Leasehold rovenrnts Totsl 2022 Cost Balance at 5 April 2021 Additions 1,164.346 482.873 9,307 1.6S6,526 B4lan¢e #t 5 Awil 2022 1,164,346 482,873 1,656,526 eciation Balance at 6 April 2021 Charge for the period Acculumated depreciation at S Awil 2022 209,719 23,287 403,25) 48,287 451,540 6,857 1,017 7,874 619.829 72,591 692,420 Nettwk value ats Awil 2022 931,340 31,333 964,106 Net book value at 5 April 2021 954.627 79,620 2,450 1,036,697 R¢port and Accoutts- 5 April 2022 23 THE GLASS-HOUSE TRUST 5 April 2022 NOTFS TO THEACCOUNrs 2022 2021 Market value 6 April 2021 Less: Disposa15 at proceeds Add.. Acquisitions at cost Net gain on revaluation of investwrnts rketialue 5 Awil 2022 9,063,856 6,936.338 (2,323.070) (1,999,2 79) 2,127.843 2,854, 765 488,884 1,272,032 9J57513 9,063,856 Investment cash holdings 78,840 45,449 Total In￿Stments 9,436J53 9,109,305 Historical cost 5 April 2022 9,093,417 9,130,637 The investnrnts held as al 5 April 2022 were as follows: 2022 Market Value 2021 Markel Value Cost Cost Fi>Ed Interest UK Fquities Overseas Equities Altemative5 Cash held for reinveslwrnt 237.107 2,091,425 4,884,628 1,801.417 7&840 254,098 1,626,891 5,571,347 1.905.177 78.840 1,039,3JJ 2,142,401 4,969,776 933.640 45,449 1,041.487 J,017,455 5,408,709 996,205 45,449 9.093,417 9.436.353 9.130,637 9,109,305 During the year £332,110 (2021: £159,247) was disinvested from the investment portfolio to support the Ttwst's gtxnt eypenditure. D￿BToRs 2022 2021 AccNed income 15,271 15,271 R¢wrtw)d A¢¢ounts- 5 April 2022 24 THE GLASS-HOUSE TRUST S April 2022 NOTFS TO THEACCOtiNTS 10. CRFDrfoRS - amounts falling due Iiithin one year 2022 2021 Crtnts payable (note 4) Profess ional Charges Other creditors 9)6,000 9,072 11,055 926 127 400,000 11,160 9.803 420.963 I I. ANALYSJS OFIW AssEfs BMVFFN FUNDS Unrestricted Fund5 ndatle ment Totals 2022 Fund balances at 5 April 2022 are represented by: Tangible fLYd assets Investments Current assets Cu￿ent liabilities 964,106 9,436,353 (805,982) 964.106 9,436,353 120,145 (￿6,127) 926,127 {￿&[27} Total net assets 9,594,477 9,594,477 Mffitment in the year Opening balance as at 6 April 2021 10,077,066 10,077,066 Total inconK and endowments Cost of raising funds Cost of grant-making Net gain on inVest￿￿ntS Trdnsfers between ￿ndS 176,020 176,020 (25,595) (1.121.898) 488,884 (25,595) (1,121,898) 488,884 (945,878) 945,878 Cl(ksinE Imlance &8 at 5 Awil 2022 9,594,477 9594,477 During the year, there was a deficit of income over e>penditure on the unrestricted funds of £907249 (2021.. £269,491). This has been funded by a transfer from eApendable endowment. Rtport and A¢¢ount5- 5 April 2022 25 THE GLASS-HOUSE TRUST 5 April 2022 N(Y￿5 TO TAEACCOi]Nrs 11. ANALYSIS OF￿ ASSEfs BEfWFE¥ FufiDS (Continued) COMprati￿ An#ly5i$ of net osscts IRlwYen funds for the year ended 5 April 2021 Reslated Unrestricted Ddaile Totsls Fun(b Endoiiment 2021 Fund balances at 5 April 2021 are represented by: Tangible f]xed assets Investments 1,036.697 9.109,305 (68,936) 1.036,697 9.109,305 351027 {420,963) Current assets 420,963 (420,963) Cuttent liabilities Totsl De¢ assets 10,077.066 10,077,066 Mowment the year Opening balance as at 5 April 2020 9,449,712 9,449,712 Total income and endoWn￿ntS Cost of raising fvnds Cost of grant-t￿1k1ng Net gain on investments tK)ss on foreign eKhange Transfrrs between ￿ndS 192.202 192.202 (24.415) (49A773) 1,307,812 (35,780) (24.415) {496,773) 1,307,812 (35,780) (304.571) 3IM,571 Closing tth12n¢¢ *$ at 5 April 2021 IOJ92,758 10 J92,758 R¢port and A¢counts- 5 April 2022 26 THE GLASS-HOUSE TRUST 5 April 2022 NOTh5 TO THEACCOUNTS 12. RFLATthD PARTYTRANSACTIONS Included within govemance and support costs is a total of £3,702 (2021= £3.288) payable for legal services to Portrait Solicttors, a fLrnI in which Miss J S Portrait was a partner. £3,072 (2021.. £2,592) was yet to b¢ invoiced at the end of the financial year. During the year, five {2021'. no) grants totalling £3.43 million (2021.. £nil) were approved Whe￿ a conflict of interest with a beneficiary wa5 Indentif￿d. All grants are multi year, and subsequent paynrnts subject to reporting tenrLS and Conditions. All grant-making is nwde at ami's length, and in the nornul course of the Trust's activities. Whe any conflicts of interest may occur, appropriate action is taken to mitigate any risk of undue influence or control in the decis K)n-making process. Applicant organisations are not controlled by The Glass- House Trust, and the Trnstees are mindfvl of the need to consider any potential confl￿tS of interest when making grant awards. 13. PRIOR PIIUOD ADjUsT￿￿￿r During the year a review of th¢ depreciation rate polKy was undertaken. It was agreed thal the dcpreciation rate for freehold property improven*nts shoutd be reduced from 50 years to 10 years to better refkct the use￿1 life of the additions. The smpact of this change is as folk)ws'. Reseries ]Xbsition A15A 112021 At6A 112020 Funds previously reported 10,427.837 9.449.712 Adjustment on restatement.. Cumulative depreciation additions for property improvements (350,771) (315,692) Reststed fun