## **THE JD FOUNDATION**
# **TRUSTEES’ REPORT AND AUDITED ACCOUNTS**
**Registered charity number 1167090 Company number 09808812 For the year ended 31 January 2022**
**THE JD FOUNDATION LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** Traci Corrie Neil Greenhalgh Nigel Keen Siobhan Mawdsley Dan Finley (resigned 23 November 2021) Nicola Kowalczuk Christopher Stephenson (appointed 4 April 2022) **Chairman** Traci Corrie **Secretary** Siobhan Mawdsley **Company Number** 09808812 **Charity Number** 1167090 **Auditors** Barlow Andrews LLP Carlyle House 78 Chorley New Road Bolton BL1 4BY **Bankers** Barclays 43 High Street Sutton Surrey SM1 1DR **Solicitors** DLA Piper UK LLP Princes Exchange Princes Square Leeds LS1 4BY Addleshaw Goddard LLP One St Peter’s Square Manchester M2 3DE **Registered Office** Edinburgh House Hollinsbrook Way Pilsworth Bury Lancashire BL9 8RR
**THE JD FOUNDATION CONTENTS**
||**Page**|
|---|---|
|Trustees’ report|1 - 4|
|Statement of trustees’ responsibilities|5|
|Independent auditor’s report|6 - 8|
|Statement of fnancial activities|9|
|Balance sheet|10|
|Statement of cashfows|11|
|Notes to the accounts|12 - 16|
**THE JD FOUNDATION TRUSTEES’ REPORT** _**FOR THE YEAR ENDED 31 JANUARY 2022**_
The Trustees present their annual report and financial statements for the year ended 31 January 2022.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, 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)".
## **Structure, governance and management**
## **Trustees**
The trustees who served during the period were:
Traci Corrie Neil Greenhalgh Nigel Keen Siobhan Mawdsley Dan Finley (resigned 23 November 2021) Nicola Kowalczuk
Since the period ended Christopher Stephenson was appointed as trustee on 4 April 2022.
## **Governing Document**
The JD Foundation was incorporated on 4 October 2015 as a company limited by guarantee and is governed by its memorandum and articles of association. The company was subsequently registered as a charity with the Charity Commission on 13 May 2016.
The directors are trustees for the purposes of charity law and in this report are collectively referred to as the trustees. Responsibility for The JD Foundation’s direction and affairs lies with the trustees.
## **Appointment of trustees, induction and training**
The skill requirements for the trust body are reviewed and any vacancy arising is filled by consensus amongst the remaining trustees to meet the necessary criteria. When new trustees are appointed they are given an introduction to the work of the trust and provided with the information needed to fulfil their roles, which includes information about the role of trustees and charity law. Meetings take place at least twice a year to review the charity’s financial matters and general operating management.
## **Objectives and activities**
The JD Foundation’s mission is to support youth charities working with disadvantaged young people affected by circumstance or illness.
## _Principal funding sources_
The trust has 2 principal sources of income:
- 100% of the income net of VAT arising from the sale of single use carrier bags in the JD, Size, Scotts, Tessuti, Go Outdoors, Blacks, Millets and Ultimate Outdoors retail fascias in England, Scotland and Wales.
- Other income from colleague fundraising.
## _Charities Supported_
This income is then distributed as follows:
- Mountain Rescue England & Wales – a specific donation reflecting 10% of the amount raised (net of VAT) from the sale of carrier bags in England and Wales in the JD, Size, Scotts, Tessuti, Go Outdoors, Blacks, Millets and Ultimate Outdoors retail fascias. Prior to April 2021, the donation was 12.5%.
- Scottish Mountain Rescue – a specific donation reflecting 10% of the amount raised (net of VAT) from the sale of carrier bags in Scotland in the JD, Size, Scotts, Tessuti, Go Outdoors, Blacks, Millets and Ultimate Outdoors retail fascias. Prior to April 2021, the donation was 12.5%.
1
**THE JD FOUNDATION TRUSTEES’ REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2022**_
JD Foundation’s nominated charities and other support projects – donations of varying amounts from the remaining 90% of the amount raised (net of VAT) from the sale of carrier bags in England, Wales and Scotland plus income from other sources of fundraising.
The JD Foundation’s nominated charities during the year to 31 January 2022 were:
C.R.Y. (Cardiac Risk in the Young) Once Upon A Smile Salford Foundation Smiling Families Kidscape Manchester Youth Zone Papyrus YoungMinds Sport 4 Life UK Bolton Wanderers Buddies of the Birches The Wellspring Sacriston Youth Project HideOut Blueprint 4 All Unseen Harmony Youth Project Scottish Mountain Rescue Mountain Rescue England & Wales
## **Financial review**
The Statement of Financial Activities for the period is set out on page 9. Financial accounts are reviewed by all trustees regularly and the annual financial statements are subject to audit by registered auditors.
## **Achievements during the year**
The period covered by this report and attached financial statements is 1 February 2021 to 31 January 2022. During this period the activity of The JD Foundation comprised the receipt of income from JD Sports Fashion Plc of £662,195 (2021: £631,098) and subsequent donations to the nominated youth and environmental charities of £475,472 (2021: £397,724).
During the year, we continued to support numerous organisations through our charitable donations, as outlined above and in note 5 to the accounts.
The Foundation produce a Social Impact Report guided by what our charities had to say about us and the support we had given to them individually. It was clear that we had achieved a positive lasting impact on our partner charities and alongside their recommendations we will continue to improve and develop The JD Foundation.
## **Principle funding source**
The trust is dependent on all income net of VAT arising from the sale of single use carrier bags in stores in England, Scotland and Wales and colleague donations and fundraising.
## **Plans for the future**
The trustees are committed to ensuring that the charity continues the activities outlined above in the forthcoming 12 months subject to satisfactory funding arrangements.
The JD Foundation have had an exciting five years; during which we have supported over 19 charity partners, succeeding in making a difference to the young people within our community. We have had a fantastic response from internal personnel supporting our school mentoring programme and with volunteering opportunities across numerous charity partners. The Foundation recognise the need to look forward, this involves us looking at what we can do better and ensure sustainability and that of our partners. This focus on sustainability is at the core of our future strategy and we will work to ensure that both the Foundation and its charity partners are equipped to achieve this.
2
**THE JD FOUNDATION TRUSTEES’ REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2022**_
Strategy is critical to our continued success. Embedding the parent company (JD Sports Fashion Plc) values into our strategy is key to enable us to continue to grow and support our younger generation through sometimes difficult and often emotional times in their lives. The insights given by our charity partners and internal consultations have enabled us to establish a number of goals and operational aims that we would like to focus on as part of our 2 year plan:
## _Goal 1: Strengthen our culture_
- Build our corporate engagement
- Develop our staff
## _Goal 2: Further our reach_
- Raise our profile internally and externally
- Expand our reach nationally
## _Goal 3: Create sustainable charity partners_
- Formalise our funding structure
- Continually monitor and evaluate
- Dedicated IAG (information, advice and guidance) resource for ourselves and charity partners (E-books initially then add to website)
The sustainability of our planet and the risks of modern slavery are wider issues affecting more than just the countries we live in and are embedded in the values of our parent company, JD Sports Fashion Plc and as part of the Foundation strategy, we will support these areas in the JD business and work to include them within our charity.
The Foundation and JD, working together and supporting each other, will create a more sustainable organisation for ourselves and our charity partners.
Money does not always solve the problem and as a charity within a very successful business, we have opportunities to support in many different ways: training courses through our Academy, work experience, exploring job opportunities within the business and utilising the many skills of our employees who have shown very willing to give their time to all of our charity partners.
## **Reserves**
The trustees have reviewed the reserves of the trust. The policy is to meet its commitments given to specific nominated charities each year. Unrestricted funds total £389,965 and there are no restricted funds at 31 January 2022.
The trustees confirm that they are ultimately accountable for setting and monitoring the level of reserves kept by the JD Foundation and will keep the reserves policy under review to ensure it remains appropriate.
## **Risk Factors**
The trustees have assessed the major risks to which The JD Foundation is exposed and have established systems and procedures to manage them. In particular fraud and financial control are kept under review. The trustees believe that all major risks are mitigated.
## **Related Parties**
The JD Foundation receives its income from, but is independent of, JD Sports Fashion Plc. The trustees take all decisions in the best interests of the furtherance of the charity and its charitable objectives.
## **Public benefit statement**
The trustees confirm that The JD Foundation complied with the Charities Act 2011 in the period.
Each year, the trustees review the objectives and activities of the charity to ensure that they continue to reflect their aims and provide a public benefit. The trustees are satisfied that they do.
The trustees have paid due regard to guidance issued by the Charity Commission in relation to activities for the public benefit in deciding what activities the charity should undertake.
3
**THE JD FOUNDATION TRUSTEES’ REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2022**_
## **Disclosure of information to the auditors**
So far as we are aware, there is no relevant audit information of which The JD Foundation’s auditor is unaware and we have taken all steps that we ought to have taken as trustees to make ourselves aware of any relevant audit information.
## **Auditors**
A resolution for the reappointment of Barlow Andrews LLP as auditors is to be proposed at the forthcoming Annual General Meeting. The trustees recommend that Barlow Andrews LLP remain in office until further notice.
I declare in my capacity of charity trustee that the trustees have approved the report above and have authorised me to sign it on their behalf.
...................................................................
## **Signed by Neil Greenhalgh, Trustee**
5 September 2022
4
**THE JD FOUNDATION STATEMENT OF TRUSTEES’ RESPONSIBILITIES** _**FOR THE YEAR ENDED 31 JANUARY 2022**_
United Kingdom 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 incoming resources and application of the resources of the charity during the year and of its state of affairs at the end of the year. In preparing the accounts the trustees should follow best practice and:
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards and statements of recommended practice have been followed; and
- prepare the accounts on the going concern basis unless it is inappropriate to assume that the charity will be able to continue to meet its objectives.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ascertain its financial position and to ensure that the accounts comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the Trust Deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud or other irregularities.
5
## **THE JD FOUNDATION**
## **INDEPENDENT AUDITOR'S REPORT**
## **TO THE TRUSTEES OF THE JD FOUNDATION**
## **Opinion**
We have audited the financial statements of The JD Foundation for the year ended 31 January 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows 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 applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charitable company’s affairs as at 31 January 2022 and of its incoming resources and application of resources 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 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 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 charitable company 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 trustees' 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion based on the work undertaken in the course of our audit
6
## **THE JD FOUNDATION**
## **INDEPENDENT AUDITOR'S REPORT**
## **TO THE TRUSTEES OF THE JD FOUNDATION**
- the information given in the trustees’ report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the directors’ report included within the trustees’ report have been prepared in accordance with applicable legal requirements.
7
## **THE JD FOUNDATION**
## **INDEPENDENT AUDITOR'S REPORT**
## **TO THE TRUSTEES OF THE JD FOUNDATION**
## **Matters on which we are required to report by exception**
In 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 directors’ report included within the trustees’ 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:
- the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; 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 trustees' 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 statem** ents
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
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 engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the charity sector;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, employment and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit
8
## **THE JD FOUNDATION**
## **INDEPENDENT AUDITOR'S REPORT**
## **TO THE TRUSTEES OF THE JD FOUNDATION**
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
- understanding the design of the company’s remuneration policies.
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify noncompliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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 charitable company’s members, 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 state to them in an auditor’s 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
………………………………………………
## **David Kay FCA (Senior Statutory Auditor) For and on behalf of Barlow Andrews LLP**
## **5 September 2022**
## **Chartered Accountants and Statutory auditors**
Carlyle House, 78 Chorley New Road, Bolton BL1 4BY
9
**THE JD FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES** _**FOR THE YEAR ENDED 31 JANUARY 2022**_
|**Note**
**s**
**Income from:**
Donations
**2**
**Total income**
**Expenditure on:**
Charitable activities
**5**
**Total expenditure**
**Net Income/**
**(expenditure)**
Transfers between
funds
**Net movement in**
**funds**
Fund balances brought
forward
**Fund balances**
**carried**
**forward**|**Unrestrict**
**ed Funds**
**Designate**
**d Funds**
**Total**
**2022**
**Unrestrict**
**ed funds**
**Designat**
**ed Funds**
**Total**
**2021**
**£**
**£**
**£**
**£**
**£**
**£**
**602,652**
**59,543**
**662,19**
**5**
**571,780**
**59,318**
**631,098**|
|---|---|
||**602,652**
**59,543**
**662,19**
**5**
**571,780**
**59,318**
**631,098**|
||**(476,179)**
**(59,543)**
**(535,7**
**22)**
**(361,075)**
**(59,318)**
**(420,39**
**3)**|
||**(476,179)**
**(59,543)**
**(535,7**
**22)**
**(361,075)**
**(59,318)**
**(420,39**
**3)**|
||**126,473**
**-**
**126,47**
**3**
**210,705**
**-**
**210,705**
**-**
**-**
**-**
**-**
**-**
**-**|
||**126,473**
**-**
**126,47**
**3**
**210,705**
**-**
**210,705**
**263,492**
**-**
**263,49**
**2**
**52,787**
**-**
**52,787**|
||**389,965**
**-**
**389,96**
**5**
**263,492**
**-**
**263,492**|
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. The charity has no recognised gains or losses other than the net movement in funds in the period. All results derive from continuing activities.
The notes on pages 12 to 16 form part of these financial statements.
10
**THE JD FOUNDATION BALANCE SHEET** _**AS AT 31 JANUARY 2022**_
|**Notes**
**Current Assets**
Debtors
**6**
Cash at bank and in hand
**Current Liabilities**
Creditors
**7**
**Total Net Assets**
**The Funds of the Charity**
Designated Funds
**9**
Unrestricted Funds
**9**
**Total Charity Funds**
**9**|**2022**
**£**
**29,667**
**368,51**
**9**
**398,18**
**6**
**(8,221)**
**389,96**
**5**
**-**
**389,96**
**5**
**389,96**
**5**|**2021**
**£**
**100,06**
**0**
**187,79**
**9**|
|---|---|---|
|||**287,85**
**9**
**(24,36**
**7)**|
|||**263,49**
**2**|
|||**-**
**263,49**
**2**|
|||**263,49**
**2**|
The accounts were approved by the Board of Trustees on 5 September 2022 and signed on its behalf by:
………………………………………………
## **Neil Greenhalgh Trustee**
11
**THE JD FOUNDATION STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 JANUARY 2022**_
|**Notes**
**Cash fows from operating activities**
Net cash infow/(outfow) from operating activities
**10**
**Net cash used in investing activities**
**Net cash used in fnancing activities**
**Net increase/(decrease) in cash and cash equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2022**
**2021**
**£**
**£**
**180,720**
**(91,583)**
**-**
**-**
**-**
**-**|
|---|---|
||**180,720**
**(91,583)**
**187,799**
**279,382**|
||**368,519**
**187,799**|
12
**THE JD FOUNDATION NOTES TO THE ACCOUNTS** _**FOR THE YEAR ENDED 31 JANUARY 2022**_
## **1. Accounting policies**
The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial statements.
## **Company information**
The JD Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is Edinburgh House, Hollinsbrook Way, Bury, BL9 8RR.
## **Basis of preparation**
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, 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 charity is a Public Benefit Entity as defined by FRS 102.
The accounts have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the regulations but which has since been withdrawn.
The accounts are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The accounts have been prepared on a going concern basis and on a historical cost basis under the accrual concept other than as stated below.
## **Going concern**
At the time of approving the accounts, the trustees have a reasonable expectation that the charity 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 accounts. There are no material uncertainties about the charity’s ability to continue.
## **Funds**
Unrestricted funds are funds which are expendable at the discretion of the trustees in furtherance of the objects of the charity.
Designated funds are those which have been set aside for specific expenditure, at the discretion of the charity.
## **Incoming resources**
These are included in the Statement of Financial Activities (SOFA) when:
1. the charity becomes legally entitled to the benefit of use of the resources;
2. an inflow of economic benefit is probable; and
3. the monetary value can be measured with sufficient reliability.
## **Resources expended**
Liabilities are recognised as soon as an outflow of economic benefit is probable.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Grants payable are accounted for when the trustees have accepted a legal or moral obligation and accounted for as resources expended in the Statement of Financial Activities. Governance costs include costs of the preparation and examination of statutory accounts.
## **Cash and cash equivalents**
13
**THE JD FOUNDATION NOTES TO THE ACCOUNTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2022**_
Cash and cash equivalents include cash in hand and deposits held at call with banks.
## **Financial instruments**
The charity 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 charity’s balance sheet when the charity 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 includes cash and bank balances, are measured at transaction price.
## _**Other financial assets**_
Financial assets classified as other financial assets are stated at fair value with any gains or losses arising on remeasurement recognised in the statement of financial activities.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
## _**Basic financial liabilities**_
Basic financial liabilities, which include other creditors, are recognised at transaction price.
## **2. Income from charitable activities**
|**Current year:**
Donations from JD Sports Fashion Plc
Donations from JD Sports Fashion Plc staf fundraising|**Unrestricte**
**d Funds**
**Designat**
**ed Funds**
**Total**
**2022**
**£**
**535,818**
**59,543**
**595,361**
**66,834**
**-**
**66,834**|
|---|---|
||**602,652**
**59,543**
**662,195**|
The donations made by JD Sports Fashion Plc mainly relate to the income generated from the sale of carrier bags in the JD, Size, Scotts, Tessuti, Blacks, Millets and Ultimate Outdoors retail fascias in England, Scotland and Wales.
|**Prior year:**
Donations from JD Sports Fashion Plc
Donations from JD Sports Fashion Plc staf fundraising|**Unrestricte**
**d Funds**
**Designat**
**ed Funds**
**Total**
**2021**
**£**
**365,076**
**59,318**
**424,394**
**206,704**
**-**
**206,704**|
|---|---|
||**571,780**
**59,318**
**631,098**|
14
**THE JD FOUNDATION NOTES TO THE ACCOUNTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2022**_
## **3. Trustees and employees**
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the period. The foundation had one employee during the year (2021: two). The employee is employed by JD Sports Fashion Plc and wage costs are recharged to The JD Foundation.
||**2022**|**2021**|
|---|---|---|
||**£**|**£**|
|Wages and salaries|**46,655**|**16,229**|
The figure for wages and salaries this year includes £16,757 in relation to VAT charged retrospectively on the staff recharges from JD Sports Fashion Plc from prior financial periods, and a further £4,325 VAT on the current year charge. No VAT is included in the wages and salaries figure of £16,229 for the prior year.
## **4. Related parties and related party transactions**
There were no related party transactions during the year ended 31 January 2022 (2021: none).
## **5. Expenditure on charitable activities**
Expenditure on charitable activities was primarily charitable donations. During the year the trust made 25 donations (2021: 20) to the Foundation’s nominated charities, in addition to the quarterly donations to the Mountain Rescue England and Wales and Scottish Mountain Rescue. Further donations are analysed by sector.
|**Donations**
Mountain Rescue
Youth
Health
Social Services
Education
Other
**Support costs**
Staf costs (note 3)
Other support costs|**2022**
**£**
**2021**
**£**
67,043
59,318
225,179
159,850
87,750
73,419
43,650
42,637
22,500
-
29,350
62,500|
|---|---|
||**475,472**
**397,724**|
||46,655
16,229
10,595
3,560|
||**57,250**
**19,789**|
## **Governance costs**
15
**THE JD FOUNDATION NOTES TO THE ACCOUNTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2022**_
|Audit fees
3,000
2,880
**Total charitable expenditure**
**535,722**
**420,393**
‘Other’ donations include donations for memorials and fundraising events.
**6.**
**Debtors**
**2022**
**2021**
**£**
**£**
Prepayments and accrued income
**29,66**
**7**
**100,06**
**0**
Debtors include income due to the charity at the period end.
**7.**
**Creditors**
**2022**
**2021**
**£**
**£**
Accruals and deferred income
**8,221**
**24,36**
**7**
Creditors include expenditure committed by the charity but not paid at the period end.
**8.**
**Financial instruments**
**2022**
**2021**
**£**
**£**
**Carrying amount of fnancial assets**
Measured at amortised cost
**368,5**
**19**
**187,7**
**99**
**Carrying amount of fnancial liabilities**
Measured at amortised cost
**8,22**
**1**
**24,3**
**67**
**9.**
**Movement in funds**
**Current year:**
**Balance**
**brought**
**forward**
**01.02.21**
**Movement in funds**
**Balance**
**carried**
**forward**
**31.01.22**
Income
Expenditure
Transfers
Designated Funds
-
59,543
(59,543)
-
-
Unrestricted Funds
263,492
602,652
(476,179)
-
389,965
Total Funds
263,492
662,195
(535,722)
-
389,965|Audit fees
3,000
2,880
**Total charitable expenditure**
**535,722**
**420,393**
‘Other’ donations include donations for memorials and fundraising events.
**6.**
**Debtors**
**2022**
**2021**
**£**
**£**
Prepayments and accrued income
**29,66**
**7**
**100,06**
**0**
Debtors include income due to the charity at the period end.
**7.**
**Creditors**
**2022**
**2021**
**£**
**£**
Accruals and deferred income
**8,221**
**24,36**
**7**
Creditors include expenditure committed by the charity but not paid at the period end.
**8.**
**Financial instruments**
**2022**
**2021**
**£**
**£**
**Carrying amount of fnancial assets**
Measured at amortised cost
**368,5**
**19**
**187,7**
**99**
**Carrying amount of fnancial liabilities**
Measured at amortised cost
**8,22**
**1**
**24,3**
**67**
**9.**
**Movement in funds**
**Current year:**
**Balance**
**brought**
**forward**
**01.02.21**
**Movement in funds**
**Balance**
**carried**
**forward**
**31.01.22**
Income
Expenditure
Transfers
Designated Funds
-
59,543
(59,543)
-
-
Unrestricted Funds
263,492
602,652
(476,179)
-
389,965
Total Funds
263,492
662,195
(535,722)
-
389,965|3,000|2,880|
|---|---|---|---|
|||**535,722**|**420,393**|
||263,492
662,195
(535,722)
-||389,965|
16
**THE JD FOUNDATION NOTES TO THE ACCOUNTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2022**_
Unrestricted funds are represented by total net assets.
Designated funds are funds which the Trustees earmark specifically for Mountain Rescue organisations each year.
## **9. Movement in funds (continued)**
|**Prior year:**
Designated Funds
Unrestricted Funds
Total Funds|**Balance**
**brought**
**forward**
**01.02.20**
**Movement in funds**
**Balance**
**carried**
**forward**
**31.01.21**
Income
Expenditure
Transfers
-
59,318
(59,318)
-
-
52,787
571,780
(361,075)
-
263,492|
|---|---|
||52,787
631,098
(420,393)
-
263,492|
|**10.**
**Cash generated**from operations
Net income for the year
Movement in working capital:
Decrease/(increase) in debtors
(Decrease)/increase in creditors
**Cash generated from / (absorbed by) operations**|**2022**
**£**
**126,47**
**3**
**70,393**
**(16,14**
**6)**
**180,72**
**0**|**2021**
**£**
**210,70**
**5**
**(80,08**
**8)**
**(222,2**
**00)**|
|---|---|---|
|||**(91,58**
**3)**|
## **11. Analysis of net assets between funds**
17
## **THE JD FOUNDATION NOTES TO THE ACCOUNTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2022**_
All funds are unrestricted in this year and in the previous year.
18