OpenCharities

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2022-12-31-accounts

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Annual Report and Financial Statements for the year ended 31 December

20 22

Company Limited by Guarantee: 12132713

Registered Charity: 1184957 (England & Wales); SCO49712 (Scotland)1 |

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Our shared missions

The Joseph Rowntree Foundation (JRF) works to speed up and support the transition to a more equitable and just future, free from poverty, in which people and planet can flourish. The Joseph Rowntree Housing Trust (JRHT) works towards a UK without poverty through the provision of affordable, comfortable and secure homes to people in York and parts of the northeast of England. Both organisations continue to draw inspiration from our founder, Joseph Rowntree, in working to end the poverty that blights the lives and life chances of millions of people, and to ensure dignity and esteem for everyone in the UK, addressing insecurity, exclusion and powerlessness.

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Contents

01 - REPORT OF THE BOARD

4 Structure, governance and management

8 Introduction - Chair’s statement:

9 Governing document 2022

12 Strategic report (including the Directors’ report as required by company law)

12 Objectives and activities

15 Achievements and performance

32 Risk

35 Financial review

41 Plans for the future

49 Trustees’ statement of responsibility

02 - FINANCIAL STATEMENTS

Independent auditor’s report to Trustees Statement of financial activities

Balance sheet

Statement of cash flows

Statement of accounting policies Notes to the accounts

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Structure, governance and management

Executive Directors

Paul Kissack, Group Chief Executive

Graeme Cooke, Sophia Parker, Tracey Preece , Director of Insight Director of Emerging Director of Finance & Policy Futures

Chris Simpson, JRHT Executive Director

Frank Soodeen, Claire Townson , Director of Director of Communications & Corporate Services Public Engagement

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Trustees and Statutory Directors

Will Haire CB Professor Carol Chair to April 2023 Tannahill OBE Chair from April 2023

Saphié Ashtiany

Anita Bhatia (from December 2022)

Deborah Cadman Dr Hilary Cottam OBE

Farah Elahi

Helen Evans

Paul Jenkins

David Lunts

Gillian Russell

Professor Jo Kené Umeasiegbu Swaffield

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Reference and administration information

HEAD OFFICE

The Homestead 40 Water End Clifton York YO30 6WP

BANKERS

HSBC 13 Parliament Street York YO1 8XS

SOLICITORS

Eversheds Sutherland 4th Floor, Rotterdam House, 116, Newcastle upon Tyne NE1 3DY

DWF LLP Central Square South Orchard Street Newcastle upon Tyne NE1 3AZ

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EXTERNAL AUDITORS

Grant Thornton UK LLP No 1 Whitehall Riverside Leeds LS1 4BN

INVESTMENT MANAGERS

The Charities Property Fund Savills Investment Management LLP 33 Margaret Street LONDON W1G 0JD

Generation Investment Management LLP 20 Air Street 7th Floor London W1B 5AN

J.P. Morgan Asset Management (Europe) S.à r.l.

European Bank and Business Centre (Building H), 6, route de Trèves L-2663 Senningerberg Grand Duchy of Luxembourg

Schroder Investment Management Ltd 1 London Wall Place London EC2Y 5AU

Comgest 46 St. Stephen’s Green Dublin 2 Ireland

Lazard Asset Management Limited 50 Stratton Street London W1J8LL

Ruffer LLP 80 Victoria Street London SW1E 5JL

Wellington Management Funds (Ireland) plc 25-28 North Wall Quay International Financial Services Centre Dublin 1 Ireland

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Introduction

WILL HAIRE CB - Chair of Trustees

This is my final report as Chair after nine years on the Board of Trustees. Despite the external turbulence of 2022, colleagues have continued to focus and deliver on our shared missions. Our campaigns calling for lowincome families to be adequately supported during the cost-ofliving crisis helped to unlock major tranches of financial relief. And critically, after years of relatively low external spend (alongside growing internal spend), we started to move more money out the door in line with our commitment to fostering deeper transitions.

Meanwhile, JRHT ended the year reporting generally good performance on the traditional metrics around rent, repairs and relets, having also reinvigorated its approach to tenant engagement and achieved ‘good’ ratings for all its care settings.

Within JRF, we completed a series of restructures and started to implement a new operating model within our central services: creating dedicated embedded teams in JRF and JRHT, and smaller group-wide teams. Within JRHT, a major focus has been a process of simplification and performance improvement

in care services. This included exiting the provision of Independent Living Services and closing the Lamel Beeches residential and nursing care home.

I leave the post confident that with some strong foundations now laid as part of the strategy refresh and remodelling, both organisations are well placed to continue to make a positive difference in what feels like a far more uncertain world than when my involvement with these two wonderful organisations first started.

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Governing document 2022

The Joseph Rowntree Foundation (JRF) was formed by a Deed of Foundation dated 13 December 1904, originally under the name of the Joseph Rowntree Village Trust. There have been a number of changes to the Deed since then, the most significant being effected under the Joseph Rowntree Memorial Trust Act 1959. The name was changed to the Joseph Rowntree Foundation in 1990.

Following a review of governance structures and an incorporation process in 2020, JRF is now constituted as a Company Limited by Guarantee and its governing document is the JRF Articles of Association.

As per the Articles of Association, JRF is the parent organisation of the Joseph Rowntree Housing Trust (JRHT).

Trustees set the strategy for JRF and the wider Group; day-to-day management functions are the responsibility of the Executive Directors.

RECRUITMENT OF TRUSTEES

As per the Articles of Association, JRF Trustees are appointed by existing Trustees to serve three-year terms. There is a maximum of three terms for each Trustee, so they can serve for a total of nine years.

Recent comprehensive recruitment drives have been conducted in partnership with external specialists, with diversity, skills and continuous improvement pivotal to the brief. A skills matrix is maintained for all Trustees, which informs recruitment of Trustees and nominations to other governance committees in the Group.

Trustee induction and personal development arrangements are regularly reviewed, and a specific budget is established for this purpose.

Some individuals are both JRF Trustees and members of the Board of JRHT.

ORGANISATIONAL STRUCTURE

JRF is governed according to its Articles of Association by JRF Trustees. JRHT, a Community Benefit Society and subsidiary of JRF, is governed by its Board in accordance with its rules.

JRF is responsible for setting strategy and Group operations, and there is an Intra-Group Agreement that specifies the relationship between the two organisations.

There are three sub-committees that support both JRF and JRHT:

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compliance with the risk-management strategy and that there is best practice in the approach to internal audit. In 2022, the Committee consisted of three JRF Trustees, three JRHT Board Members and three independent members.

In addition to the sub-committees that are shared with JRHT, there are two further committees that report directly to JRF Trustees alone:

Trustees are committed to delivering best practice in the governance of the Group and as such have commenced a running Board Effectiveness programme, which culminates in a full, comprehensive review every three years; the first of these took place in 2020. Trustee appraisals, including for the Chair of Trustees, are conducted annually. The design of this process was developed in 2020 in conjunction with external experts.

On an annual basis, JRF Trustees self-assess against the Charity Governance Code for larger charities. As the code sets out, this is recommended practice, deliberately aspirational, and some elements will be stretching for many charities

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to achieve. In almost all areas, JRF meets the recommended practice. The three areas that we are specifically seeking to respond to in 2023 are:

Pay and remuneration is set by JRF Trustees, on the recommendation of the Resources Committee and in consultation with the JRHT Board.

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STRATEGIC REPORT (including the Directors’ report as required by company law)

Objectives and activities

JRF shares its vision with its subsidiary JRHT to achieve a prosperous UK without poverty.

JRF and JRHT share a set of values that are core to the way the organisations work and are at the heart of everything we do. They show what we care about, help us to make decisions and show us how to behave together. Our values support us to deliver our mission.

JRF’s specific charitable objects, as set out in our Articles of Association, are:

Our analysis of the present overlapping crises afflicting the UK, and the refreshed organisational strategy and mission statement for delivering our objectives that flowed from it, recommitted us to addressing the most urgent and pressing manifestation of poverty today, while sowing the seeds of a more equitable future. To support such a transition, we will put all our wealth in service to our mission, largely through three types of work across all nations of the UK:

We will also deepen and broaden our approach to investing the rest of our endowment in socially responsible ways, supporting the transition we wish to see.

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The substantial endowment that came with the establishment of the original trust means that JRF does not need to fundraise and does not, therefore, have a fundraising policy. It does, however, have financial mechanisms that ensure the real value of the endowment is maintained while giving JRF access to a substantial level of funding. The mechanisms include a calculation that compares the value of the underlying investments, less any liabilities over the previous three years, to a long-term target. The difference between the actual value and the target determines the percentage of the endowment that can be used as core funding during the following financial year. The amount of core funding is formally approved by the Resources Committee on an annual basis. This process acts as a proxy for a formal reserves policy.

JRHT’s objectives and activities continue to be shaped by:

2022 saw a particular focus on:

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How activities deliver public benefit

JRF’s main activities are described above. Our charitable activities focus on working with others to inspire action and change to solve UK poverty.

JRHT’s objectives and activities are all intended to provide a public benefit. This is achieved through services such as:

Trustees have had due regard to guidance on public benefit produced by the Charity Commission. They are of the opinion that undertaking these activities fully meets the requirements of section 17 of the Charities Act 2011 to deliver public benefit.

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Achievements and performance

JRF

Much of JRF’s work in 2022 was framed by the close interplay of the global and the local. While the people of Ukraine continue to pay the highest of prices for Russia’s invasion, the UK – still reeling after the COVID-19 pandemic and with an open economy highly dependent on global supply chains for many of its essentials – was not immune to the effects of the war. The ensuing cost-of-living crisis underlined how vulnerable the most disadvantaged people in the country now are to external supply shocks.

Policy disagreements within the governing party in Westminster about how to build resilience played out over months, causing unnecessary uncertainty for families. These, combined with the necessity to tackle inflation, led to higher borrowing costs for both the state and households at exactly the worst time possible. The country’s reputation for fiscal responsibility still hangs in the balance with its creditors, tempering expectations that the spending needed to ease the pressure on public services will be possible in the near term.

Finally, rising commodity prices led the global energy firms most resistant to investing in greener alternatives to generate record profits. For this they were rewarded handsomely by the stock markets, confirming that the most important drivers towards decarbonisation will not be those firms and their share owners. Instead, two distinct approaches look set to shape the speed and direction of the energy transition:

This divergence could in turn shape the future of manufacturing industries across advanced economies, potentially pulling good jobs into the US heartlands at the expense of other countries in the short to medium term.

In 2022 we focused on addressing the immediate consequences of these events and continued to lay the foundations for work that would enable us to meaningfully help shape a future that looks set to be marked by more volatility and challenge.

Crisis in living standards

For much of the year we used our position as a leading authority on poverty to engage with politicians and employers, applying pressure on both to provide more targeted help to low-income households facing the prospect of large real-terms cuts to their incomes as inflation steadily marched upward. JRF staff

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worked tirelessly alongside many of our allies with lived experience of poverty to counter political arguments about the unaffordability of providing substantial help, appearing frequently in the media and as witnesses to the Department for Work and Pensions (DWP) and Treasury Select Committees.

Our flagship UK Poverty 2022 report, our Poverty in Scotland 2022 report and our cost-of-living trackers documented the exposure of Britain’s poorest families to the growing crisis in living standards. Each was widely covered in the media, as was other JRF analysis, providing important reference points for the people trying to challenge the UK Government’s early narrative that additional targeted cash support – as opposed to tax cuts – would merely fuel inflation.

They, along with memories of the issues raised in the Keep the Lifeline campaign, and others’ reports, played a role in engendering a fierce backlash among opinion formers across the political spectrum after the UK Government unveiled a series of insufficient measures in the Spring Budget. This in turn helped to change ministerial opinions, setting the stage for a major policy reversal by May, with £15 billion of extra support announced, much of it well targeted on the poorest households. In Scotland we focused our attention on trying to persuade the Scottish Government to double the bridging payments designed to support families not yet eligible for the Scottish Child Payment.

The collapse of Boris Johnson’s Government in early summer resurfaced differing views about the best way to support families. The frontrunners to replace him debated the benefits of cash support versus tax cuts during the leadership contest. The eventual winner, Liz Truss, surprised many by announcing a large Energy Support Package shortly after her victory. However, its sheer size and lack of detail on final costs, combined with the large unfunded tax cuts revealed at her first Budget, unnerved Britain’s creditors. In the scramble that followed her Government’s fall, we became increasingly concerned that the promises made by Boris Johnson that working-age benefits would rise with inflation would not be met, as Rishi Sunak and Jeremy Hunt sought to placate the markets.

To counter this risk, we published analysis showing the impact of a real-terms cut to benefits by parliamentary constituency to help keep the pressure up and organised a coalition of 120 charities around a common message pressing for the pledge to be kept. Ultimately, the UK Government followed through on its original promises to uprate benefits.

Beyond Westminster, JRF’s ongoing financial support for the Minimum Income Standards research, which in turn is used as a basis for setting the Real Living Wage, helped make it possible for a 10.1% increase in the Real Living Wage rate. It is conservatively estimated that nearly 400,000 workers across 11,000 employers benefited from the move. We also joined an investor coalition convened by the responsible investment charity, ShareAction, to file a resolution ahead of Sainsbury’s Annual General Meeting in July in a bid to shift the major supermarket into becoming a Real Living Wage accredited employer. JRF staff attended meetings with senior executives of the supermarket, using their expertise and evidence to make the case for the move, as well as the importance of it covering third-party contractors. Although the resolution ultimately failed to

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pass, because of this pressure Sainsbury’s agreed to increase their base pay for outer London staff from £10.50 an hour to £11.05, meaning that all Sainsbury’s directly employed workers are now paid at least the Real Living Wage, leading to a net gain for around 19,000 employees.

Shaping an economic and social model in which people and planet can flourish

The present crisis is partly about external supply chains, but it is also about deep systems that leave families, low-paid workers and unpaid carers balancing evertighter budgets while gas producers declare huge profits, landlords put up rents and large corporations hand out millions to shareholders. Alongside our attempts to bring about urgent policy and practice changes now, our mission also demands that we help to foster the deeper shifts needed to transform unjust systems that perpetuate disadvantage.

In July we held a major two-day conference (which we intend to turn into an annual event), featuring 57 speakers from around the globe who joined 500 inperson and online guests, all of whom in diverse ways are pushing the boundaries of philanthropy and investment in a bid to rewire the financial models and systems that reinforce inequality and ecological destruction. The conference created a unique space to consider as many emerging ideas and practices as possible, showing what is already happening, and what might need more support and resourcing.

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An important part of our new strategy involves backing the collectives building real-world models to show in the micro the types of changes that are both necessary and possible in the macro. Following a rigorous design phase, we closed the year by agreeing to financially support 23 such organisations, the first step in moving £5-6 million of our endowment to such work over the next two years ahead of some longer-term commitments over 10 years. The engagement processes behind this work had the added benefit of helping us to steadily grow a community of practice to nearly 900 individuals from diverse sectors who want to follow the progress of this work and contribute to its success.

In the nearer term, much of our policy and advocacy work is now turning to focus on the political parties as they look to (and beyond) the next general election, as well as seeding longer-range change through collaborations and demonstration, combining in-house and partnership work.

Our report in June, Making a house a home: why policy must focus on the ownership and distribution of housing, had, according to several accounts, a formative influence on the Labour Party’s strategic thinking about housing policy as its leadership wrestles with the question of how to provide – through a range of tenures – more secure, truly affordable homes while facing likely limits on capital spend. In the second half of the year, we made senior appointments within the policy team, hiring experts to lead thinking around work and around care.

With 2022 providing yet more proof of how inadequate working-age benefits have become, in the background JRF policy and campaigns staff worked closely with Trussell Trust counterparts to develop a new policy proposal (the Essentials Guarantee) and a multi-year, public-facing campaigns strategy to be launched in 2023, aimed at building support for a more objective approach to setting benefit levels.

The power of working in partnership was further confirmed with the publication of the Levelling up White Paper. For the past three years, JRF has provided funding to UK Onward’s Social Fabric Commission, with senior staff also advising on its key outputs. The White Paper accepted several recommendations from several Social Fabric Commission reports.

Another important advantage of partnerships is the chance they give to explore new, more inclusive ways of developing solutions and ideas for complex problems: fusing different perspectives and methods in innovative ways. To that end, we agreed to fund a collaboration between JRF and the UCL Policy Lab to trial an innovative approach to generating ideas and action, drawing on Danielle Allen’s approach to power-sharing liberalism. We also commissioned End State author James Plunkett to lead a strand of work examining further the new forms of social and economic injustices generated by digital capitalism, and the ideas and innovations likely to be needed in response. His three essays ‘The invidious hand’, ‘The care paradox’ and ‘Inequality’ were well received by a range of stakeholders, and we are now considering how to further diffuse the ideas contained within them.

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Part of 2022 was spent scoping what it would take to build a healthy ecosystem of social imagination, shaped by a greater multitude of voices and with a network of partners far beyond the Westminster village. To help us establish some momentum around the work, we commissioned a series of high-profile thinkers to describe the value of this work in a series of well-received blogs. Separately, we provided financial backing to the Resolve Collective to run a week-long residential programme of events for black and people of colour practitioners from the arts, culture and social change sectors who are working to imagine and build alternative futures. Elsewhere, our support for the New Constellations project on economic change in Sheffield, and the citizen-led process of imagining a different economic future for the city that it made possible, generated a new coalition of individuals and organisations committed to working together across civil society, the private sector and public agencies.

Finally, we started to pivot our portfolio of externally funded campaigns to ones aimed at fostering systemic change. We provided core funding to the ‘We’re Right Here’ campaign, which aims to build a united movement for community power. Over 2022 the campaign built a strong and cohesive team of community leaders and a wider network of approximately 120 community organisations, and is now gearing for the general election manifesto cycle. In response to signs that opponents of the zero-carbon agenda were seizing on the living standards crisis to argue against decarbonisation, we decided in the closing weeks of the year to also provide backing, alongside the European Climate Foundation, to the ‘Bring Energy Home’ campaign run by Britain Remade. This aims to build public support for on-shore renewable energy, a key prerequisite considering current planning restrictions.

Supporting people most disadvantaged by the status quo to build power

A key tenet of our strategy is that social transformation relies on those who are directly affected by social inequities to be at the forefront of efforts to push for deep change. Within JRF, the remit of the Grassroots Poverty Action Group expanded beyond its traditional focus on enriching our analytical State of the Nation reports and engaging the public through the media, to encompass a wider set of projects, while also seeking opportunities for ongoing dialogue with JRF staff to contribute insights and shape organisational thinking.

Externally, in 2022 we provided financial backing to the Civic Power Fund to work with grassroots organisers to design a set of funding norms that would enable them to do their vital work – another step to influencing the resourcing environment. Separately, we funded Community Organisers Ltd to run a ‘National Listening’ campaign to surface the stories and lived experience of people in their network, identifying common themes to guide their actions at local, national and regional levels. We also committed to a further three years of funding for the APLE Collective to continue their work raising awareness of poverty and challenging stigmatising attitudes.

In Wales, JRF’s funding enabled our strategic partner, the Bevan Foundation, to extend and develop its initial pilot project with ACE, a grassroots group, to build a cohort of 40 people living in Ely and Caerau willing to engage public and political audiences, raising awareness and challenging misconceptions of poverty.

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In Scotland, our continued funding of the Poverty Alliance has helped to enable the delivery of the annual Challenge Poverty Week, a key moment in the political calendar where grassroots community groups, large national non-governmental organisations, voluntary organisations, statutory organisations, trade unions, faith groups, academics and community activists with lived experience of poverty work together to highlight the injustice of poverty in Scotland, and to show that collective action based on justice and compassion can create solutions.

Indeed, one of the most important roles that social movements can play revolves around the distribution of ideals, values, public narratives and norms in society. We resource this process in several additional ways.

As a result of our funding, this year saw the launch of a new toolkit from the Reframing Race initiative, pulling together insights from a 20,000-person engagement exercise designed to help activists change the public conversation on racism in order to build an anti-racist future. Through our collaboration with Nationwide Foundation, we also published the outputs from the Talking about Housing framing programme. Our grant to Church Action on Poverty also enables people with lived experience of poverty to be trained on how to campaign and engage the public through various media.

Finally, with the help of our funding, 11 writers from disadvantaged backgrounds received £1,500 bursaries and one-to-one mentoring with industry leaders organised by A Writing Chance, as well as the publication and broadcast of their work in The New Statesman, the Daily Mirror and BBC Sounds.

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In JRHT, performance against its core outcomes is set out below.

MORE PEOPLE ARE INDEPENDENT AND WELL – LINKED TO OUR ROLE AS A CARE AND EXTRA CARE PROVIDER

Care services delivered safe, effective, well-led, responsive and caring services in very difficult times

JRHT’s care services and their teams have responded incredibly well to the ongoing and changing demands of the pandemic, ensuring that residents and their families receive the best service possible. On a day-to-day to basis, and throughout 2022, JRHT care teams, including those who manage and deliver care, prepare food and drink, offer a range of social activities, and ensure that homes are clean and well maintained, have worked positively in a very challenging situation. This has included adhering to strict PPE regulations – including wearing masks day in, day out, and observing other infection control measures. It has also included regular and stringent testing programmes, obligations to be vaccinated and response to outbreaks. Amid all of this, JRHT care teams have continued to provide safe, effective, well-led, responsive, and caring services, and this is reflected in all of JRHT’s care services being rated ‘good’ by the Care Quality Commission.

Services that maintain independence

JRHT’s retirement communities and those with extra care continue to provide an environment where residents can maintain independence and social networks. We have well-established communities in York, Leeds, Hartlepool and Scarborough where residents can live independently in a supportive and caring environment while accessing a range of services and activities, including domiciliary care, dining opportunities, health and fitness programmes, and social and other activities.

Learning lessons from service design

We recognised through a ‘Lessons Learnt’ process that some of our specifications for the award-winning New Lodge development did not support residents to be independent. For example, we identified that some doors should have been installed as automatic opening; instead, there were manual doors that restricted residents’ access to communal areas. As such, we made changes to the designs and will now be installing automatic doors to enable residents to have full access to those areas without the need for assistance.

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MORE PEOPLE ARE SHAPING OUR COMMUNITIES – LINKED TO OUR COMMITMENT TO BUILDING RESIDENT INVOLVEMENT AND INFLUENCE WITHIN JRHT

Increasing resident involvement and influence

In 2022 we ramped up our resident involvement and engagement activity to ensure more people have the opportunity to influence what is happening in their neighbourhood and how JRHT is delivering services. At a strategic level, our newly formed Residents’ Assembly met five times in 2022, offering an opportunity for residents to seek further information and challenge JRHT on issues that are important to them and their neighbours. Attendance at the assembly continues to grow each time it meets, and we now have around 15 regular attendees, representing many of the places where JRHT has homes.

We have also worked hard to improve engagement with residents through placebased groups. In some neighbourhoods this has meant continuing the growth of existing relationships, however in others we have taken a more active approach to identify new partners and opportunities. A good example of this is the community development work we have been doing with the Foxwood Community Centre to better serve our residents living in the neighbouring Woodlands estate, hosting regular money and benefits advice drop-ins, and consulting on shared public spaces.

Consulting on new developments

We have held a series of in-person consultation events for our new developments, including at Sturdee Grove and Poppleton (attended by more than 100 residents). This gives local communities the opportunity to provide feedback on our plans and suggest appropriate changes to new development plans. Alongside this we have held a number of community information and consultation events at Derwenthorpe focused on road remediation, Phase 5 construction and a broad landscape strategy.

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MORE PEOPLE CAN IMPROVE THEIR PROSPECTS – LINKED TO OUR APPROACH TO SUPPORTING RESIDENTS IN AREAS SUCH AS MONEY AND BENEFITS ADVICE

Cost-of-living support

As the cost-of-living crisis started to impact during 2022, our Money and Benefits Advice (MBA) team continued to provide free support to anyone who needed it. In the last year alone, the team has helped people access over £500,000 of benefits to which they were entitled, £114,000 of which was in the form of backdated payments. As well as this, a pre-tenancy advice session with a MBA has now been incorporated as part of the standardised housing offer process for all residents – ensuring people are supported to maximise their incomes and only enter tenancies they will be able to sustain. MBA team members also now offer out-ofhours appointments to enable people in work to access the service more easily.

Work to improve the consistency and reach of information communicated to residents regarding sources of support has been ongoing, and an internal mailing list has now been created to aid this.

Informal support sessions are being held at some of our sites including the Folk Hall, where a small number of people attend our Open House sessions that offer the opportunity for warmth, access to free Wi-Fi and conversation. The ‘pay as you feel café’ at Foxwood community centre continues to flourish, with regular attendees bringing new people, and partner agencies often attending to provide signposting and support.

Apprenticeships that offer opportunity

Within JRHT care services, we offer apprenticeship opportunities that enable those staff who wish to progress in their career to do so while still working and earning. During 2022 we had a total of 19 staff across care and catering teams who were enrolled/studying for qualifications, six of whom completed their studies and gained their qualification within the last year.

JRHT is keen to promote apprenticeship diplomas as they are a good, recognised qualification within the sector, and they help staff to develop in their role and improve their confidence in their practical capabilities on the job. Managers have regular discussions with their staff to encourage uptake, and opportunities are currently available to all of our staff from our Care, Catering and Administration

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teams. Upskilling in this way is important for JRHT as it supports our existing staff with their preparation for progressing into more senior roles.

Alison is a great example of our commitment to invest in the development of our own staff.

“

In 2002 I started working for JRHT at Hartrigg Oaks Community Care, this was a part-time role as my children were young. During the first few years I recognised that this was an area of work I would like to progress and develop in further. JRHT enabled me to progress through my diploma Levels 2 and 3, and with these qualifications I was able to expand my knowledge. I was given the opportunity to diversify in my role across various job roles and care service sites. I took on further responsibility as a team senior, which included a dual role within both Community Care and The Oaks care home. I was able to learn about the different services of JRHT and began my Level 5 in Leadership and Management. This supported my upskilling in key areas such as compliance and legislation, safeguarding and leading a team effectively, and gave me the confidence to apply for the Deputy Manager position at Red Lodge (now Rowntree Lodge). Now my children are grown up, I feel this is my time to action my career ambitions, and for me the natural progression after being a Deputy Manager for the last four years has now led me to becoming the interim manager at The Oaks. The diplomas available to care staff within JRHT can support individuals to develop as far as they would like to, whether this be achieving a personal goal or advancing to a professional level. ” Alison Leaf, Registered Manager, The Oaks

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MORE PEOPLE LIVE IN A DECENT, AFFORDABLE HOME – LINKED TO OUR TARGET OF MAINTAINING GOOD REPAIRS – LINKED TO OUR TARGET OF MAINTAINING GOOD REPAIR SERVICES AND MODERNISATION PROGRAMMES, AND BUILDING 1,000 NEW HOMES WITHIN A TEN-YEAR PERIOD

Day-to-day repairs and maintenance

In 2022 we spent over £2.2 million on routiOne of JRHT’s primary services is the respo n e and plsive rep a nned maintenance. During irs and maintenance operation. During 2022 we found it increasingly difficult to recruit to some skilled 2022 we found it increasingly difficult to recruit to some skilled operative posts, operative posts, and at timand at times this has affect e s this has affected our performance. We have focused d our performance. We have focused our efforts on ensuring that emergency nd urgent repairs aour efforts on ensuring th a t emergency and u r gent repairs are not affected, but as e not affected, but as a result some a result some general maintengeneral maintenance activity h a nce activity has taken longer than anticipated. We s taken longer than anticipated. We have taken have taken the opportunity to review our approach in this area and to improve the opportunity to review our approach in this area and to improve our ability outo ecruit and retain our skilled operatives, and subsequently we believe this w ll r ability to recruit and retain our skilled operatives, and subsequently we bel i eve this will impact positivimpact positively on p e rformance. ly on performance.

Modernisation programme

JRHT continues to prioritise investment in its existing stock. While we experienced some delays due to availability of materials and planning requirements, particularly around our roofng, windows and doors programme, nearly £1.8 million was invested in a range of modernisations and improvements. This included kitchens (60), bathrooms (42), properties with new windows and doors (76), external decoration (48) and new boilers (63).

Targeting more areas for new development

In 2022 we continued to pursue our target to build 1,000 afordable new homes. During the year, JRHT purchased new properties through Section 106 opportunities at Garforth in Leeds and Bootham Crescent in York, totalling 36 homes. JRHT has submitted planning applications for 198 homes across York. Although we have been disappointed at the pace at which these planning applications have progressed, we are committed to working with the City of York Council to see these developments materialise into much-needed homes for the city. JRHT has extended its geographical area of development to cover six more local authorities. These all adjoin York and will give signifcantly more opportunities to provide much-needed afordable homes for people.

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Group-wide organisational change

A major focus during 2022 was implementing new organisational models across JRF, JRHT and central services teams. Simultaneously we worked with staff towards a voluntary recognition agreement with Unite the Union for JRF Teams, central services and Homestead gardening staff, which, following Trustee approval in December, was signed in January 2023. We are now working with the Union to establish some routine ways of working. JRF and JRHT colleagues have not been immune from the impacts of the cost-of-living challenges. In response, JRF Trustees agreed a one-off £1,500 payment to all staff across the Group. News of the separate 9% cost-of-living pay increase for 2023 was well received by staff and was reflected in January pay. We hope it will feed through to higher retention rates in care in particular.

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The role of social investments

Since 2015, 5% (currently notionally set at £20 million) of JRF’s endowment has been allocated to fund social investment.

Our social investments are a mix of direct and fund investments, supporting organisations that further JRF’s overarching charitable mission through their operating activities. Alongside having meaningful social impact, social investments are also expected to deliver a modest financial return. However, the overriding purpose of the commitments is to contribute towards the achievement of JRF’s charitable aims.

From 2015 through 2022, JRF committed £14 million to 32 social investments. The following 30 investments were still active as of December 2022, with values shown reflecting the total original commitment made by JRF.

AFFORDABLE HOUSING

Ashley Community Housing (ACH) – £200,000

ACH provides a resettlement service for refugees in the west of England and the West Midlands. It helps its tenants by providing supportive housing and training courses comprising language, culture, health and personal finance training. JRF has committed funding for ACH to purchase houses in Birmingham to rent to refugees.

Funding Affordable Homes (FAH) – £500,000

FAH is an £88 million fund, launched in 2015, investing in general needs and specialist affordable housing in the UK. The fund has deployed capital across 10 projects.

Hartlepool Housing Heroes (HHH) – £75,000

The Housing Heroes project is run by Hartlepool NDC Trust with Let’s Connect Hartlepool, in partnership with JRHT and the Hartlepool Action Lab. HHH purchases properties for young care leavers to refurbish and move in to, and supports the young people’s transition to adulthood.

London Community Land Trust (London CLT) – £100,000

London CLT works with teams of local residents to create permanently affordable homes that are priced according to local income and are owned by local people.

London Rebuilding Society (LRS) – £250,000

LRS helps older home-owners, on a low income, to manage and finance the refurbishment of their home to a safer and greener standard, so that they can live longer and better in their own home.

Micro Rainbow International – £400,000

Micro Rainbow provides safe temporary housing, move-on support and social inclusion activities for lesbian, gay, bisexual, transgender, queer and intersex (LGBTQI) asylum-seekers and refugees in the UK.

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National Homelessness Property Fund (NHPF) – £500,000

NHPF provides move-on accommodation for people at risk of homelessness. The £44 million fund has purchased homes in Oxford, Bristol and Milton Keynes, and works with St Mungo’s and Developing Health and Independence to support tenants so that they can transition into the private rented sector.

Social and Sustainable Housing (SASH) – £1,000,000

The £64 million SASH fund provides flexible loans to small and medium-sized charities across the UK to finance the purchase of properties to house people experiencing poverty and hardship.

Women in Safe Homes (WISH) fund – £300,000

The £29 million WISH fund provides safe, secure and affordable homes to women and their children across the UK. It works with organisations that provide specialist support to women who are survivors of domestic abuse, are leaving prison or have complex mental health problems.

York Refugee Housing – £500,000

This investment is for the purchase of up to three homes for refugees in York. The properties provide housing for those facing complex situations, such as those with disabilities, who would otherwise struggle to access suitable accommodation.

SOCIAL IMPACT FUNDS

Big Issue Invest (BII) Social Enterprise Investment Fund II (SEIF II) – £500,000

SEIF II is a £24 million fund that invests in social enterprises and charities with sustainable business models. The fund has invested in organisations operating in areas such as social care, early years education, financial inclusion, mental health and employment.

Bridges Evergreen Holdings – £500,000

Bridges Evergreen makes long-term investments in for-profit organisations with a clear social mission. The fund size is £66 million. Bridges Evergreen has invested in organisations operating across impact areas including fuel poverty, affordable housing, healthcare for older people, skills training and care for young people with complex needs.

Fair by Design – £3,000,000

Fair by Design is a £15 million fund, which was set up by JRF and Big Society Capital in 2015 to invest in early-stage ventures that find fairer ways to serve low-income consumers, tackling the poverty premium in key sectors such as financial services, energy, insurance, household goods and food.

Growth Impact Fund (GIF) – £250,000

GIF is a fund that invests in early-stage, growing organisations that tackle inequality in the UK and have diverse representation at board and leadership levels. Through a partnership between the fund manager Big Issue Invest and the foundation for social entrepreneurs, Unltd, GIF will offer both funding and capacity-building support to investees.

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Mustard Seed – £500,000

JRF has invested in a managed account, run by Mustard Seed, which invests in for-profit social purpose enterprises.

North East Social Investment Fund (NESIF) – £500,000

NESIF is a £10 million fund that supports charities and social enterprises across the north-east of England. The fund has invested in almost 30 organisations across impact areas including social care, education and mental health.

FINANCIAL INCLUSION

Fair Finance – £180,000

Fair Finance provides microlending and financial advice to individuals excluded from mainstream banking. It is particularly focused on serving areas of need in London.

Fair For You – £500,000

Fair For You offers loans for the purchase of white goods and other essential household goods. This has enabled low-income consumers to benefit from the provision of flexible, low-cost credit.

Five Lamps – £500,000

Five Lamps is a microlender based in the north-east of England providing lowcost, flexible loans.

Great Western Credit Union – £350,000

Great Western Credit Union (previously Bristol Credit Union) is a community credit union committed to serving Bristol, Bath and the surrounding areas.

Leeds City Credit Union – £250,000

Leeds City Credit Union is one of the largest credit unions in the UK.

GOOD JOBS

BelleVie – £200,000

BelleVie is a home care provider applying a Buurtzorg (Netherlands)-inspired operating model in the UK. This approach facilitates home care workers to work in small, self-managed teams, thereby increasing flexibility and autonomy. This in turn translates into improved employee wellbeing and satisfaction, and better patient care, as well as providing cost savings. BelleVie is also an accredited Living Wage Employer in a low-paying industry.

Glasgow Together – £250,000

Glasgow Together has created employment opportunities for ex-offenders in the construction sector by building new affordable homes and bringing empty properties back into use.

London Early Years Foundation (LEYF) – £187,000

LEYF operates a cross-subsidy model for children’s early years education that makes it more accessible to children from lower-income households. Over half of LEYF’s nurseries are rated ‘outstanding’ by Ofsted and over 70% operate in deprived areas.

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RefuAid – two separate investments totalling £420,000

RefuAid helps those with refugee status access language tuition, education, finance and employment. Its Access Loan scheme provides support by offering interest-free loans of up to £10,000 for refugees to pay for UK accreditation, requalification or training, thereby facilitating them to return to employment in their professional fields.

Resolution Foundation (Workertech) – £150,000

The Resolution Foundation’s Workertech Partnership aims to finance and support new social ventures that are seeking to use technology to improve the prospects of workers in the UK.

Timewise – £250,000

Timewise is a social consultancy working to unlock the flexible jobs market in the UK to enable those who need flexibility to find good-quality jobs. By tackling the lack of decent flexible work, Timewise aims to reduce in-work poverty and gender inequality.

COMMUNITY

Shared Lives Investments – £350,000

Shared Lives Investments is a fund launched in 2015 as a proof of concept to help expand Shared Lives care in England, enabling a greater number and a more diverse group of vulnerable adults to access high-quality community care.

YMCA Robin Hood Group – £500,000

YMCA Robin Hood Group (previously Nottinghamshire YMCA) is the largest YMCA in the Midlands, with services including supported housing, residential care for children, health and fitness, and support programmes for children and families. JRF has committed funding to develop the Community and Activity Village in Newark and Sherwood. The project seeks to tackle the root causes of underlying social and health problems to provide better opportunities for young people from deprived backgrounds, while also creating new jobs in an economically disadvantaged area.

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Risk

Trustees own Group risks and are responsible for setting the risk appetite for JRF and for approving the appetite set for JRHT by the JRHT Board. All staff, however, have a responsibility to identify and manage risk throughout the Group. A separate Risk Management Strategy is in place for JRHT, and a Risk Management Strategy for JRF will be established in 2023. These replace the Group Risk Management Strategy previously agreed.

Each risk is assessed for its likelihood and its impact both before and after controls (‘inherent risk’ and ‘residual risk’). Controls are identified together with responsibility for the management of the risk. Where necessary, actions to improve the management of the risk are identified.

The Group Chief Executive and Directors monitor and review risks on a regular basis.

The following principal risks have been identified for the Group. Trustees have considered the risks to which the organisation is exposed and have taken appropriate steps to mitigate these risks, as described.

Principal risks for the JRF Group

The following table sets out the principal risks for JRF, including how these are managed.

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RISK MITIGATION
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RISK MITIGATION
REPUTATION
Risk to the credibility of, and
trust in, the organisation.		 Risks arising from JRHT activity are reported to the JRHT Board by
the Executive Director.
There are strong internal quality assurance processes in JRF
teams and a robust strategic communications planning process to
structure the rollout of external-facingoutputs and messages.
COMPLIANCE AND REGULATION
Failure to comply with
regulators’ requirements		 As a charity, JRF is registered with and is regulated by the Charity
Commission for England and Wales and the Scottish Charity
Regulator. JRHT is regulated by the Regulator of Social Housing
and Care Quality Commission. Regulatory requirements are
tracked, and gap analyses undertaken on at least an annual basis
and regulators are notifed where needed. A standing report is
presented to the Audit and Risk Committee each quarter, providing
details of any regulation or inspection reports received and
highlighting key risk areas communicated with the regulators.
Dedicated compliance roles are established. Actions arising from
inspections and audits are tracked and monitored, with progress
regularly reported to the relevant leadership teams and the Audit
and Risk Committee.
Failure to adequately
comply with the General
Data Protection Regulation
(GDPR), other UK laws,
sector-specifc regulations,
and contracts relating to data
and technology		 Information governance and security policies are in place. A
dedicated Information Security Manager is supported by other
sector-specifc compliance managers. There is mandatory data
protection training for all staf.
OPERATIONAL/SERVICE DELIVERY
Operations disrupted by
external factors beyond our
control		 A corporate emergency protocol is in place with local disaster
recovery and business continuity plans developed at department
and operational level. Systems and processes were successfully
tested – particularly within JRHT’s housing and care services -
duringthe coronavirus crisis.
FINANCE
Economy:
• infation
• interest rates (impacts
JRHT)
Pension risks
• Cost of Defned Benefts
pension defcit payments
increases materially		 Planning includes testing a range of scenarios.
Monthly monitoring of key economic indicators.
Our Defned Benefts scheme is now closed and we only have a
Defned Contributions pension scheme available.

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RISK MITIGATION
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RISK MITIGATION
PEOPLE AND CULTURE
Failure to have diversity in
our workforce		 Actions are being taken in relation to recruitment, retention and
learning opportunities for our workforce. We are developing
inclusive recruitment practices, including Disability Level 1
accreditation.
We have active Black, Asian and minority ethnic (BAME), LGBT+,
Disabilityand Women’s Staf Networks.
Risk of being unable to
recruit and retain skilled staf		 Regular review and discussion of workforce data and
recommendations in relation to strategies to mitigate risk areas and
identify opportunities take place.
We review pay and reward structures, including priorities to address
areas of scarce skills and labour shortages.
INVESTMENTS
Investments fail to deliver the
Total Return that is required
to meet JRF fnancial
objectives, and deliver our
strategy		 Our Investment Committee is informed by independent members
and advisers.
We have an Investment policy with an emphasis on real assets.
A review of asset allocations is undertaken annually, with a more
strategic review every four to fve years.
A fnancial planning mechanism has been established to guide the
level of drawdowns without eroding the real value of the overall
endowment over time.
Investments equivalent to three years’ expenditure in liquid assets
are held.
Stress testing of fnancial plans to extreme conditions is
undertaken.
SOCIAL INVESTMENTS
Failure of a social investment
risks loss of our investment
in full or part, damage to our
reputation with investees and/
or partners, and failure of
the investment to deliver any
impact		 A Social Investment policy is in place, with the need to perform risk
assessments being a key part of this. This policy is reviewed annually.
An impact framework has been agreed by the Social Investment
Committee.
There is monitoring of investments, both regular and intensive, as
needed.
Suitably skilled individuals manage the portfolio – a Head of Social
Investment supported by an Investment Portfolio Manager and
retained external specialist expertise.

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Financial review

TRUSTEES’ POWERS AND RESERVES POLICY

The Trustees have power to spend both Foundation income and capital. The only restricted funds within the group balance sheet relate to JRHT.

OBJECTIVES

JRF’s financial objectives are:

The Trustees monitor the level of the endowment against the target on a quarterly basis. The endowment’s performance against the long-term target is the key factor in determining the sustainable level of spending.

INVESTMENT POLICY AND STRATEGY

The majority of JRF’s investments are held as financial investments, although Trustees have decided to allocate £20 million of the fund for social investments.

The objective for JRF’s financial investments is to maximise the ‘total return’ over the long term, subject to not taking undue risk. This ‘total return’ represents the combination of changes in capital values and income received. Thus, a neutral position is taken as to whether a return is received by way of capital growth or distribution of income: it is the total that is important.

We have determined that investment in real assets, principally equities, represents the most appropriate strategy for meeting JRF’s financial and investment objectives. As the chart below shows, equities account for 88% of the investment portfolio.

Trustees appreciate that this approach will result in short-term volatility in the market value of the portfolio, but they consider that the organisation’s financial strength and absence of significant fixed liabilities mean that JRF is able to withstand such fluctuations. The Investment Committee reviews the asset allocation policy on at least an annual basis, taking appropriate professional advice.

Although the financial investments are designed to maximise returns, at JRF we believe strongly in investing our funds responsibly. We define ‘responsible investment’ as an investment approach based on the view that the effective management of environmental, social and governance (ESG) issues is not only the right thing to do, but is also fundamental to creating value. We believe that companies that are successful in avoiding ESG risks and/or capturing ESG opportunities will outperform over the longer term. This longer-term view is consistent with JRF’s investment time horizon.

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JRF seeks to incorporate ESG issues fully in its investment activities. We do this by:

JRF also follows an ethical investment policy within the overarching theme of responsible investment. It does not invest in stocks and shares in companies that are significantly associated with the manufacture of armaments, tobacco, brewing and gambling. ‘Significant’ is defined as 10% of either profits or turnover.

The asset allocation at the end of 2022 was:

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2022 ACCOUNTS AND FINANCIAL PERFORMANCE

Balance sheet

The Group balance sheet brings together both JRF and JRHT assets and liabilities. The latter includes housing properties, care homes and other fixed assets.

As an endowed foundation, the majority of JRF’s reserves are held as investments. Group long-term creditors include JRHT’s loans ( £46 million ) and residence fees ( £32 million ) associated with Hartrigg Oaks continuing-care retirement community.

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GROUP PARENT
2022 2021 2022 2021
£M £M £M £M
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GROUP GROUP PARENT PARENT
2022 2021 2022 2021
£M £M £M £M
Fixed assets (tangible and intangible) 193.5 194.7 2.8 2.8
Investments (market value) 437.7 509.7 434.4 506.6
Home-buy loans (JRHT) 2.0 2.2 - -
Net current (liabilities)/assets, excluding
pension liabilities		 0.5 1.0 (4.0) (1.9)
Long-term creditors, excluding pension
liabilities		 (90.8) (102.1) (0.8) (0.4)
Pension liability (9.3) (9.0) (9.3) (9.0)
Foundation capital 533.6 596.5 423.1 498.1

The value of JRF’s investments reduced significantly in 2022. There was a sharp sell-off in global markets during the year, which drove down equity valuations. With inflation remaining high, interest rates continuing to rise, and the war in Ukraine, investors remained concerned about the risk of a significant economic slowdown and, potentially, recession. JRF is a long-term investor and does not react to short-term market movements by making changes to its investment strategy. The year-end positions held in the balance sheet are after allowing for spending of capital as shown in the Statement of Financial Activities (see below).

The Trustees have agreed that up to £50 million of the investment portfolio should be ring-fenced to support JRHT, particularly in relation to the future development of new affordable housing. £12.7 million of this has been drawn, with £11.5 million utilised to repay part of the outstanding balance on the Handelsbanken revolving credit facility.

The endowment, which is the value of the investment portfolio less outstanding liabilities, reduced from £498.1 million to £423.1 million between 31 December 2021 and 31 December 2022. This is a 15% decrease over the year, but remains 28% ahead of JRF’s internal target. This is the primary key performance indicator

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for financial performance, although individual investment manager performance is tracked against agreed benchmarks.

A chart showing the long-term performance of the endowment versus the target is provided below:

STATEMENT OF FINANCIAL ACTIVITIES (JRF company only)

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2022 2021
£M £M
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2022 2021
£M £M
Total income 11.5 6.0
Grant commitments (20.3) (5.7)
Support and governance costs (9.5) (8.2)
Cost of raising funds (1.5) (5.4)
(Increase) / decrease in pension liability - -
Total expenditure (31.3) (19.3)
Net expenditure, funded from capital (19.8) (13.3)
Re-measurement of pension scheme
obligations		 (1.8) 4.5
Gains / (losses) on investments (53.3) 60.5
Net movement in funds (74.9) 51.7

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Types of JRF Expenditure

The significant increase in grants to JRHT primarily reflects the drawdown of an additional £11.5 million from JRF from the original £50 million set aside for development. This was utilised to part-repay outstanding revolving credit facilities.

The audited financial statements can be found on the JRF website at www.jrf.org.uk. The financial statements have also been filed with the Charity Commission. JRHT’s financial statements can be found at www.jrht.org.uk. As a Community Benefit Society, these are filed with the Financial Conduct Authority.

PENSIONS

Since the end of 2019, JRF has been able to identify its share of assets and liabilities held within the Defined Benefit element of the industry-wide Social Housing Pension Scheme (SHPS). The Defined Benefit option has been withdrawn although there remain legacy members. With the availability of this data from SHPS, JRF has, since 2019, applied Defined Benefit accounting, which means that the scheme assets are measured at fair value and liabilities on an actuarial basis. At the end of 2022, the fair value of JRF’s proportion of scheme assets had decreased to £32.2 million from £58.0 million at the end of the previous year. Over the same period, the actuarial value of scheme liabilities decreased from £67.1 million to £41.5 million. The overall impact of these changes was an increase of the pension liability from £9.0 million to £9.3 million.

CENTRAL SERVICES TEAMS

JRF and JRHT are both supported by a small number of central teams, including Technology and Change, People, Finance, Health & Safety and Facilities, Internal Communications and a Project Management Office. These central teams contribute to the delivery of JRF’s and JRHT’s objectives through:

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GOING CONCERN

The financial statements show that:

In December 2022, JRF’s Trustees formally approved the charity’s budget for 2023. Separately, the amount of cash required to fund activities over the year was calculated and arrangements were put in place to liquidate investments. Provisional calculations have also been prepared for 2024 to ensure there is sufficient liquidity within the portfolio. The arrangements with investment managers allow the amounts scheduled to be drawn down to be reduced or increased at short notice, should cash requirements change.

Despite JRF’s significant investment holdings, management has:

JRHT undertook its own scenario analysis to understand the financial impacts of adverse changes to the external and internal environment. In addition, an assessment has been undertaken to understand how extreme scenarios would need to become before covenants were breached. This shows that there would need to be a very significant deterioration in performance to breach the interest covenant, and a rapid and substantial increase in debt to risk a breach of the gearing covenant.

At the end of the financial year, JRHT had unused borrowing facilities of £40 million. £25 million of the total unused facilities relates to a loan facility with JRF and £15 million with Handelsbanken.

Based on the above, Trustees are of the opinion that the Group has adequate resources to continue to operate without disruption for the foreseeable future, this being at least to 31 December 2024. As such, it is appropriate to adopt a going-concern basis for the 2022 financial statements.

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Plans for the future

JRF

In December 2022, Trustees signed off our broad work programme for 2023, aligned with a new strategic direction for the organisation.

The cost-of-living crisis

The current crisis will continue to dominate the UK economic, social and political context during 2023. We need to keep public and political attention on those at the sharpest end and press for necessary support to help people through.

In 2023 we will:

The next General Election

There will be a Westminster election in the next two years, with a change of government looking distinctly possible. We therefore need to focus on Westminster in 2023 and 2024 more than we normally would, as there is a critical opportunity to shape elements of the national policy debate. We need to produce propositional insight and policy work in our areas of focus and engage closely with political parties. Alongside this, through our Scotland team, we will keep a deliberately tailored focus on the most politically charged elements in Holyrood.

In 2023 we will:

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Alongside this we will:

Longer-range ideas and vision work

Alongside seeking to influence the Westminster debate in 2023 and 2024, we will keep a very deliberate focus on nurturing longer-range thinking, more radical proposals, and voices and ideas further from the centre of political power.

In 2023 we will:

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Building the future and building movements

A critical shift in our strategy is to put more of our organisational energy and money behind building the new.

In 2023 we will:

Insight infrastructure

We will adopt an ‘infrastructure mindset’ in much of the work described above – thinking about how we can play a generous role in the sector with a ‘value for many’ approach, for example in how we support movement building, or share outputs from public attitudes work. In addition, there are some specific and highly valued bits of analytical and insight infrastructure we already provide as part of the social policy infrastructure of the UK, and which we want to expand as part of our infrastructure offer.

In 2023 we will:

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Organisational development

Internally, we want to continue to strengthen JRF’s organisational culture and capacity to deliver the new strategy, after a period of significant change. In 2023 we will:

JRHT

In 2023, JRHT will continue to respond to drivers and influence within the external environment that are mentioned throughout this report. JRHT will also look at the following key areas of priority:

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entity within the JRF–JRHT Group, with a stronger Board, a 30-year financial plan, reduced regulatory risk in care services, and a stronger voice for residents both locally and in the decisions that JRHT makes.

In doing so, we aim to consider what it is that we do, who do we do it with, and how and where we should do it.

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Carbon emissions

Disclosures required under the Streamlined Energy and Reporting (SECR) legislation are set out below. These include all subsidiaries.

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MEASURE 2022 PRIOR YEAR
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MEASURE 2022 PRIOR YEAR
Total UK energyuse 11,394 MWh 12,219 MWh
Total carbon emissions 2,111 tonnes 2,339 tonnes
Intensityratio 2020 1 (property) 0.87 tonnesperproperty 0.96 tonnesperproperty
Intensity ratio 2020 2 (communal) 3.37 tonnes per member
of staf		 3.73 tonnes per member
of staf

The breakdown of carbon emissions is as follows:

ACTIVITY ANNUAL kWh ANNUAL
CO2e		 PRIOR YEAR
ANNUAL CO2e
Scope 1 (sources
that are owned
and controlled by
JRF and JRHT)		 Gas (compressed
natural gas – CNG)		 8,373,647.24 1,507.26 1,671.29
Vehicles 301,086.52 77.08 82.20
Renewablegeneration 87,220.00 0 0
Total 8,761,953.76 1,584.34 1,753.49
Scope 2 (indirect
emissions
associated with
the purchase of
energy)		 Electricity 2.590,128.00 535.70 594.93
Electricity from
photovoltaics (PV)		 42,060.00 0 0
Total 2,632,188.0 535.70 594.93
Gross emissions 11,394,141.76 2,120.04 2,348.42
Scope 3 (indirect
emissions within
the value chain)		 Transmission and
distribution		 2,590,127.96 45.82 52.89
Total 2,590,127.96 45.82 52.89
Exported Renewables 45,160.00 8.73 9.59
Total Metric tonnes 2,111.31 2,338.83

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Key environmental impacts

The primary factor is the combustion of gas for heating purposes across the estate. The vehicle fleet was responsible for less than 4% of the total annual emissions for the Group.

In 2023 we will focus on:

Quantification and reporting methodology

In preparing this SECR report, the Group has followed the 2019 UK Government Environmental Reporting Guidelines to include Streamlined Energy and Carbon Reporting guidance.

The information used was gathered from energy bills from the current supplier for the fuel type specified. Where only unaligned estimated meter readings were available, the consumption for the period was determined by dividing the number of units by the billing period and multiplying by the period for the data collection. This figure was checked for accuracy to consider additional seasonal use where data was not available and ensure the estimates were an accurate reflection of the actual consumption

Some aspects of the Greenhouse Gas (GHG) Protocol Value Chain (Scope 3) have also been reported, although we are not yet able to report on all categories that may be relevant. UK Government GHG Conversion Factors for Company Reporting (2020) have been used.

Organisational boundary

The Group has reported on all sources of environmental impact over which it has financial control. An organisation has financial control over an operation if it has the ability to direct the financial and operating policies of the operation with a view to gaining economic benefits from its activities.

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SECTION 172(1) STATEMENT

As directors of a large company limited by guarantee, registered as a charity, the Trustees are required to report how they have performed their duty under section 172(1) of the Companies Act 2006. This provides that (for charitable companies where the purpose of the company is something other than the benefit of its members), the Trustees must act in the way they consider, in good faith, would be most likely to achieve its charitable purposes; specifically they must have regard (among other matters) to the factors contained in section 172(1) (a) to (f), which are set out in the table below:

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FACTOR HOW THIS IS CONSIDERED
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FACTOR HOW THIS IS CONSIDERED
a) The likely
consequences of any
decision in the long
term		 With the direct involvement of the Trustees, the Group develops long-
term plans that focus on the charitable objectives of the organisation.
These are translated into shorter-term strategic and operational plans.
Decisions are anchored to these plans to ensure that they contribute to
the overall charitable objectives.
b) The interests of the
Trust’s employees		 The Trustees have due regard to the interests of employees,
underpinned by a set of values and expected behaviours. Regular
staf surveys are undertaken and the results are cascaded across the
organisation. Colleagues are directly involved in developing action plans.
Investment is made in colleague learning and development, as well as
supporting colleague support groups. Pay awards are benchmarked
externally each year and Trustees are directly involved in this decision-
making.
c) The need to foster
the organisation’s
business relationships
with suppliers,
customers and others		 A key focus of JRF is delivering its work in collaboration with partners
with similar objectives. For JRHT, its ‘customers’ are primarily service
users, including tenants and residents of its homes. Feedback from
tenants and residents is captured and acted on. Relationships are
held with key suppliers through the Group’s approach to contract
management.
d) The impact of
the organisation’s
operations on the
community and the
environment		 The Group seeks to achieve a prosperous UK without poverty. JRF
delivers this objective through its programmes of focused initiatives, and
JRHT through the delivery of housing and care services.
The Group is cognisant of its impact on the environment as set out in its
carbon emissions statement.
e) The desirability of
the organisation
maintaining a
reputation for high
standards of business
conduct		 The Group adopts the highest corporate governance standards,
complying with relevant legislation and codes that are applicable at the
time. JRHT is also subject to the Regulator of Social Housing’s standards.
In April 2021, the regulator advised that it had rated JRHT’s governance
as ‘G1’ – the highest rating possible.
f) The need to act fairly
as between members
of the organisation		 As a company limited by guarantee, JRF has no members. At JRHT, the
directors are the only members. Notwithstanding this, the governance
structure and associated strategy ensure there is fairness across the
Group and those that beneft from the charitable activities of both
material legal entities.

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Trustees’ statement of responsibility

The Trustees (who are also Directors of JRF for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations. Company law requires the Trustees to prepare financial statements for each financial year. Under that law, the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including the Charities Statement of Recommended Practice (SORP) – FRS 102 – the Financial Reporting Standard applicable in the UK and Republic of Ireland. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the Group, and of the incoming resources and application of resources, including the income and expenditure, of the charitable Group for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy, at any time, the financial position of the company and enable them to ensure 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 other irregularities.

The Trustees confirm that:

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website.

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Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approval

This report and, specifically, the strategic report were formally approved by the Board of Trustees on 7 June 2023, and are signed on behalf of the Trustees by the Chair of Trustees.

Carol Tannahill (Chair)

13/6/2023

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Independent auditor’s report to the members and trustees of Joseph Rowntree Foundation

Opinion

We have audited the financial statements of Joseph Rowntree Foundation (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2022, which comprise the Consolidated Statement of Financial Activities, the Group and Parent Charitable Company Balance Sheets, the Consolidated 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:

Basis for opinion

We have been appointed auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts. 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 group and the parent 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

We are responsible for concluding on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may

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cast significant doubt on the group’s and the parent charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the group or parent charitable company to cease to continue as a going concern.

In our evaluation of the trustees’ conclusions, we considered the inherent risks associated with the group’s and parent charitable company’s business model including effects arising from macro-economic uncertainties such as the current ‘cost of living crisis’, high inflation and interest rates, we assessed and challenged the reasonableness of estimates made by the trustees and the related disclosures and analysed how those risks might affect the group’s and parent charitable company’s financial resources or ability to continue operations over the going concern period.

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 group’s and parent charitable company’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 directors 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 Trustees’ Annual Report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Trustees’ Annual Report. 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.

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 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.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

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Matter on which we are required to report under the Companies Act 2006

In the light of the knowledge and understanding of the group and parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors’ Report included in the Trustees’ Annual Report.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 and Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of the trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on pages 49 and 50, 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 misstatements, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s and the parent charitable company’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 liquidate the group or parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

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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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

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A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: 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 and trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 154 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees 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 its members and trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Deborah Watson BSc (Hons) FCA Senior Statutory Auditor for and on behalf of Grant Thornton UK LLP Statutory Auditor, Chartered Accountants Leeds

21/6/2023

Grant Thornton UK LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

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Joseph Rowntree Foundation Registered Charity

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2022

Note
INCOME AND ENDOWMENTS FROM:
Investments
1
Charitable Activities
Housing Trust turnover
9
Other income
2
TOTAL INCOME
EXPENDITURE ON:
Raising funds - investment management
3
Charitable activities
Grant commitments
4
Support and governance costs
5
Housing Trust operating costs
9
TOTAL EXPENDITURE BEFORE INVESTMENT MOVEMENTS
NET EXPENDITURE BEFORE INVESTMENT MOVEMENTS
Other Comprehensive income
Actuarial (Loss)/Gain in respect of Social Housing Pension Scheme
8
TOTAL OTHER COMPREHENSIVE INCOME
Investment Movements
(Loss)/Gain on Quoted Investments
13
Gain on Other Investments
13
Gain/(Loss) on Directly Managed Investment Properties
13
TOTAL INVESTMENT MOVEMENTS
TOTAL COMPREHENSIVE INCOME
Total Funds brought forward at 1 January
TOTAL FUNDS CARRIED FORWARD AT
31 DECEMBER		 2022
2021
Restricted
Unrestricted
Total
Total
£'000
£'000
£'000
£'000
273
11,426
11,699
6,211
25,544
-
25,544
28,011
-
120
120
3
25,817
11,546
37,363
34,225
(10)
(1,542)
(1,552)
(5,422)
-
(5,191)
(5,191)
(3,656)
-
(11,715)
(11,715)
(10,407)
(27,009)
-
(27,009)
(25,722)
(27,019)
(18,448)
(45,467)
(45,207)
(1,202)
(6,902)
(8,104)
(10,982)
-
(1,782)
(1,782)
4,569
-
(1,782)
(1,782)
4,569
-
(52,553)
(52,553)
58,642
-
447
447
1,838
202
(1,250)
(1,048)
-
202
(53,356)
(53,154)
60,480
(1,000)
(62,040)
(63,040)
54,067
99,638
496,879
596,517
542,450
98,638
434,839
533,477
596,517

The Statement of Financial Activities includes all gains and losses recognised in the period. All income and expenditure derives from continuing activities.

56

The Notes on pages 67-82 form part of these Financial Statements

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Joseph Rowntree Foundation Registered Charity

BALANCE SHEET as at 31 December 2022

Note
Fixed Assets
Tangible Assets
10
Intangible Assets
11
Homebuy Loans
12
Investments
13
Current Assets
Properties held for sale
14
Stock
Debtors
15
Cash and Cash Equivalents
Current Liabilities
Creditors: Amounts falling due within one year
16
Net Current Assets/(Liabilities)
Total Assets Less Current Liabilities
Creditors: Amounts falling due after more
than one year
17
Net Pensions Liability
8
Funds
Restricted Funds
Unrestricted Foundation Capital
Total Funds		 2022
2021
£'000
£'000
193,051
194,318
406
346
2,022
2,227
437,711
509,674
633,190
706,565
2,253
2,599
86
72
2,471
1,851
6,480
6,336
11,290
10,858
(10,949)
(9,815)
341
1,043
633,531
707,608
(90,769)
(102,054)
(9,285)
(9,037)
533,477
596,517
98,638
99,638
434,839
496,879
533,477
596,517
Group		 2022
2021
£'000
£'000
193,051
194,318
406
346
2,022
2,227
437,711
509,674
633,190
706,565
2,253
2,599
86
72
2,471
1,851
6,480
6,336
11,290
10,858
(10,949)
(9,815)
341
1,043
633,531
707,608
(90,769)
(102,054)
(9,285)
(9,037)
533,477
596,517
98,638
99,638
434,839
496,879
533,477
596,517
Group		 2022
2021
£'000
£'000
2,454
2,443
399
346
-
-
434,363
506,588
437,216
509,377
-
-
-
-
605
604
316
3,058
921
3,662
(4,956)
(5,541)
(4,035)
(1,879)
433,181
507,498
(760)
(393)
(9,285)
(9,037)
423,136
498,068
-
-
423,136
498,068
423,136
498,068
Parent
706,565
2,599
72
1,851
6,336
10,858
(9,815)
1,043
707,608
(102,054)
(9,037)
596,517
99,638
496,879
596,517

The Financial Statements were approved by the Board of Trustees on 7 June 2023. They were signed on its behalf by :

Trustee

Carol Tannahill

13/6/2023

The Notes on pages 67-82 form part of these Financial Statements

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Joseph Rowntree Foundation Registered Charity

CONSOLIDATED STATEMENT OF CASH FLOWS for the year ended 31 December 2022

Note
Net cash outflow from operating activities
19
Cash flows from investing activities
Interest received
Purchase of other fixed assets
Proceeds from disposal of other fixed assets
Homebuy Loans redeemed
Purchase of quoted investments
Sale of quoted investments
Purchase of other investments
Sale of other investments
Social housing grant received
Cash flows from Financing activities
Interest paid
Taxation
Increase in Capitalised community fees
Increase in Hartrigg Oaks residence fees
(Decrease)/Increase in bank loans
Bonds and loan stock repaid
Management of liquid resources
(Increase)/Decrease in cash held for investment
Net change in cash and cash equivalents
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 December
Cash
Bank Loans due within one year
Bank Loans due greater than one year
Net debt
Analysis of changes in net debt		 £'000
£'000
(5,941)
138
(2,229)
2,970
205
(48,760)
62,720
(16,685)
22,288
-
20,647
(2,616)
(118)
168
1,398
(12,520)
(120)
(13,808)
(754)
144
6,336
6,480
At
1.1.22
£'000
Cash Flows
6,336
144
(19)
20
(59,186)
12,500
(52,869)
12,664
2022		 £'000
£'000
(5,941)
138
(2,229)
2,970
205
(48,760)
62,720
(16,685)
22,288
-
20,647
(2,616)
(118)
168
1,398
(12,520)
(120)
(13,808)
(754)
144
6,336
6,480
At
1.1.22
£'000
Cash Flows
6,336
144
(19)
20
(59,186)
12,500
(52,869)
12,664
2022		 £'000
£'000
(14,230)
106
(7,347)
2,817
128
(67,642)
72,834
(44,666)
51,557
2,672
10,459
(2,152)
-
440
1,537
1,983
(459)
1,349
3,113
691
5,645
6,336
Other non
cash
changes
At
31.12.22
£'000
-
6,480
(1,022)
(1,021)
1,022
(45,664)
-
(40,205)
2021		 £'000
£'000
(14,230)
106
(7,347)
2,817
128
(67,642)
72,834
(44,666)
51,557
2,672
10,459
(2,152)
-
440
1,537
1,983
(459)
1,349
3,113
691
5,645
6,336
Other non
cash
changes
At
31.12.22
£'000
-
6,480
(1,022)
(1,021)
1,022
(45,664)
-
(40,205)
2021
(2,616)
(118)
168
1,398
(12,520)
(120)		 (2,152)
-
440
1,537
1,983
(459)
At
1.1.22
£'000
6,336
(19)
(59,186)		 Other non
cash
changes
-
(1,022)
1,022
144
6,336		 691
5,645
6,480 6,336
Cash Flows
144
20
12,500		 At
31.12.22
£'000
6,480
(1,021)
(45,664)
(52,869) 12,664 - (40,205)

58

The Notes on pages 67-82 form part of these Financial Statements

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Joseph Rowntree Foundation Registered Charity

STATEMENT OF ACCOUNTING POLICIES

1 Legal status

Joseph Rowntree Foundation (JRF) is a charity registered with the Charity Commission.

JRF is the parent of a Group comprising the following:

Joseph Rowntree Housing Trust (JRHT) is a charity registered with the Regulator for Social Housing (registration number 5079) and the Charity Commission. JRHT is a Community Benefit Society (registration number 8209) and its registered office is The Homestead, 40 Water End, York, YO30 6WP.

Clifton Estate Limited (CEL) is a private company limited by share capital, registered under the Companies Act 2006 and incorporated in England. Its registered office is The Homestead, 40 Water End, York, YO30 6WP. JRF owns 100% of the share capital of CEL.

2 Basis of accounting

The Financial Statements of JRF meet the requirements of its Articles of Association and have been prepared under the historic cost convention modified to include the valuation of investments in accordance with applicable accounting standards, the Charities Statement of Recommended Practice effective 1 January 2019, Financial Reporting Standard 102 (FRS 102) and comply with the Charities Act 2011.

JRF is a public benefit entity in accordance with FRS 102.

CEL has not been consolidated into these financial statements on the basis that its results are immaterial to the Group.

The Financial Statements are presented in Sterling (£).

3 Fund Accounting

The JRF endowment is an expendable endowment fund, with no restricted or designated reserves. Trustees have power to spend both income and capital, but have set a financial objective that the level of spending and the value of the endowment should be maintained in real terms. A sustainable level of annual spending is determined to meet this objective by reference to projected total return from the investments and future inflation. The distribution rate for 2022 was 4.5% per annum.

4 Going Concern

The financial statements show that:

In December 2022, JRF's Trustees formally approved the charity's budget for 2023. Separately, the amount of cash required to fund activities over the year was calculated and arrangements were put in place to liquidate investments. Provisional calculations have also been prepared for 2024 to ensure there is sufficient liquidity within the portfolio. The arrangements with investment managers allow the amounts scheduled to be drawn down to be reduced or increased at short notice should cash requirements change.

Despite JRF's significant investment holdings, management has:

-produced a stressed cash-flow forecast to test that, in all situations, JRF will have access to sufficient liquid funds to meet its commitments.�

JRHT undertook its own scenario analysis to understand the financial impacts of adverse changes to the external and internal environment. In addition, an assessment has been undertaken to understand how extreme scenarios would need to become before covenants were breached. This shows that there would need to be a very significant deterioration in performance to breach the interest covenant and a rapid and substantial increase in debt to risk a breach of the gearing covenant.

At the end of the financial year, JRHT has unused borrowing facilities of £40 million. £25 million of the total unused facilities relates to a loan facility with JRF and £15 million with Handelsbanken.

Based on the above, Trustees are of the opinion that the Group has adequate resources to continue to operate without disruption for the foreseeable future, at least until to 31 December 2024.As such, it is appropriate to adopt the going concern basis for the 2022 financial statements.

59

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Joseph Rowntree Foundation Registered Charity

STATEMENT OF ACCOUNTING POLICIES (continued)

5 Significant Management Judgements

The following are the significant management judgements made in applying the accounting policies of JRF that have the most significant effect on the financial statements:

Judgements

(i) Timing of grant commitments

Management estimates the value of grant commitments payable within one year by looking at the average expenditure over previous years and applying this as a percentage to the year end creditor. Since expenditure varies from year to year this represents an estimate of sums due. The liability at 31 December 2022 due within one year was £3,700,000 and more than one year was £760,000.

(ii) Impairment

As part of JRHT's continuous review of the performance of assets, management identify any properties or schemes that have increasing void losses, are impacted by policy changes or where the decision has been made to dispose of these properties. These factors are considered to be an indication of impairment.

Where there is an indication of impairment, the assets are written down to the recoverable amount and any impairment losses are charged to operating surpluses. Management consider there to be no indicators of impairment in either 2022 or 2021.

(iii) Merger Accounting

Management, having reviewed the true and fair override implicit in the Charities SORP, considered it appropriate to prepare the financial statements on a merger accounting basis when the Group began operating on 1 January 2020.

Estimation Uncertainty

Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenditure is provided below. Actually results may be different.

(i) Useful lives of depreciable assets

Management reviews its estimate of the useful lives of depreciable assets at each reporting date based upon the expected utility of the assets. Uncertainties in these estimates relate to technological obsolescence that may change the utility of certain software and IT equipment and housing property assets are split into different components that are depreciated using different useful economic lives which requires estimation. Group accumulated depreciation at 31 December 2022 was £39,200,000 (2021: £37,788,000). Parent accumulated depreciation at 31 December 2022 was £2,065,000 (2021: £2,604,000).

(ii) Retirement Benefits

Scheme assets are measured at fair value. Scheme liabilities are measured on an actuarial basis using the projected unit credit method and are discounted at appropriate high quality corporate bond rates.

As at the year ended 31 December 2022, the net defined benefit liability in respect of SHPS-DB was £9,285,000 which has been recognised in full in the balance sheet. The movement in the Scheme deficit is charged or credited to the actuarial gain or loss reported on the face of the statement of financial activities.

Management review the assumptions applied to the actuarial valuation each year and consider the sensitivity of the valuation to the variables thereon. The independent actuary appointed to value the schemes assets and liabilities estimates that a 0.3% shift in the discount rate could result in an increase in the overall deficit, amounting to £1.97m. Similarly, a 1% increase in pay inflation above actuarial assumptions would increase the overall deficit by £0.12m and a rise in general inflation of 0.3% more than that assumed results in an increased deficit of £1.3m. Management is comfortable that the assumptions it has used are appropriate for use in calculating the scheme's deficit.

(iii) Recovery of Social Investment

Management have included social investments at their book cost or market value (where there is a reliable source) less any provisions and revaluations. For the year ended 31 December 2022, the value of social investments net of new provisions of £311,000 and revaluations in the year of £668,000, was £9,864,000. Management has assumed that social investments will be fully recoverable unless, through routine monitoring, there is evidence of impairment.

60

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Joseph Rowntree Foundation Registered Charity

STATEMENT OF ACCOUNTING POLICIES (continued)

5 Significant Management Judgements (continued)

Estimation Uncertainty (continued)

(iv) Fair value measurement

Management uses valuation techniques to determine the fair value of financial instruments (where active market quotes are not available) and non-financial assets including investment properties. This involves developing estimates and assumptions consistent with how market participants would price the instrument or asset. Management bases its assumptions on observable data as far as possible but this is not always available. In that case management uses the best information available. Estimated fair values may vary from actual prices. Fair value measurements have been applied to bonds and loan stock and investment properties. The total values of these at 31 December 2022 were £794,000 (2021: £869,000) and £3,400,000 (2021 £3,198,000) respectively.

(v) Shared ownership sales percentages

Future shared ownership sales at are estimated at 45% reflecting the percentage of each property expected to be sold at completion. This percentage is assumed when projects are appraised. This estimate influences the value of work in progress properties held for sale within debtors and shared ownership assets under development in housing land and buildings. The total value of both these at 31 December 2022 was £648,000.

6 Turnover and revenue recognition

Income from UK and Overseas Equities is brought into account on the date that the stock is declared ex-dividend. Income from overseas equities are stated in sterling at the prevailing exchange rate. All other income is accounted for on an accruals basis. Income which is received directly into managed funds is accounted for within the Statement of Financial Activities with a corresponding amendment being made to the movement on the market value of the investment.

Housing Association turnover comprises rental and fee income receivable in the year, income receivable from shared ownership first tranche sales, other goods and services supplied in the year (excluding VAT) and grants receivable in the year.

Rental income is recognised at the point when properties under development reach practical completion or otherwise become available for letting, net of any voids. Rental income is then recognised in line with the tenancy agreement and for the period this is in existence.

Service charge income is recognised in the period to which it relates, net of any voids.

Charges for care and support services funded under supporting people and local authority care contracts are recognised as they fall due under the contractual arrangements with the Administering Authorities.

Government grant income received for the acquisition or development of properties is credited to restricted funds when receivable providing any conditions attaching to the grants are fulfilled. Where, at the balance sheet date, conditions remain unfulfilled, the grants are deferred pending satisfaction of these conditions.

Sales of Housing Land and Buildings are recognised on the date of the legal completion of the sale. The proceeds of sale of the first tranche of shared ownership properties are stated net of any contribution required to cross subsidise other elements of the scheme concerned and are included in turnover.

Surpluses on subsequent tranches and from other sales are recognised in their entirety in the Statement of Financial Activities on the date of the legal completion of the sale. At JRHT's Extra Care schemes the Trust is committed to buying back property on the termination of the lease. The price paid to the outgoing resident is the original price paid plus a percentage of the equity appreciation and is included in surpluses on sale. The remaining equity appreciation is retained by JRHT.

7 Investments

(i) Quoted Investments, Property Unit Trusts and Other Investments

Quoted Investments, Property Unit Trusts and other investments are included in the Balance Sheet at market value on the Balance Sheet date. Overseas investments are included at market value at the prevailing exchange rate at the Balance Sheet date. Income from overseas investments is shown at the prevailing exchange rate at the time of receipt.

61

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Joseph Rowntree Foundation Registered Charity

STATEMENT OF ACCOUNTING POLICIES (continued)

7 Investments (continued)

(ii) Properties Held for Investment

Properties held for investment are held at fair value within the Statement of Financial Position with gains and losses recognised in the Statement of Financial Activities. A formal independent valuation of directly managed investment properties in accordance with the RICS Valuation Standards guidelines is obtained every three to five years. The historic cost of properties includes directly attributable finance costs which were capitalised until the property reached practical completion.

(iii) Social Investments

Social Investments are programme related investments, as defined by the Charity Commission and represent funding to organisations in order to further JRF's charitable objects. The primary purpose of Social Investments is to provide a social return rather than a financial return. Social Investments that are loans are accounted for at the outstanding amount of the loan less any provision for unrecoverable amounts. Unquoted equity or bonds, social investment funds and partnerships, and similar social investments are held at cost, less any provision for diminution in value, unless JRF is able to obtain a reliable estimate of fair value.

8 Fixed Assets

(i) Housing Land and Buildings

Housing Land and Buildings, which includes properties for letting, residential care homes and extra care schemes, are stated at cost and includes properties in the course of construction which are being developed with a view to JRHT retaining a long-term interest. Cost of Housing Land and Buildings includes directly attributable management expenses and directly attributable finance costs which are capitalised until the property reaches practical completion.

The cost of pre-1990 rented property in New Earswick was re-stated at the Existing Use Value - Social Housing as at 31 December 2013, in accordance with the SORP at that time. The increase in cost is reflected through a Revaluation Reserve.

Costs of modernisation and reimprovements to existing properties are capitalised if they result in the replacement of a component or the enhancement of the economic benefit of the structure.

(ii) Shared Ownership Properties

Included within Housing Land and Buildings is JRHT's retained interest in dwellings developed on Shared Ownership terms. Under Shared Ownership arrangements the purchaser acquires a portion of the equity of the property and has an option to acquire at any time further portions up to a limit determined by JRHT: The price payable is a corresponding portion of the market value of the property at the date of the initial purchase or the exercise of the option. A rent is payable on any portion of the equity which is retained in the JRHT's ownership.

At the discretion of JRHT, the terms of tenure between rent, shared ownership and outright ownership can be varied over time.

The book value of JRHT's retained interest in Shared Ownership properties is stated at cost, plus cost of equity subsequently repurchased by JRHT.

The book value of the equity in Shared Ownership Properties held for resale is included within Current Assets as Housing Stock Held for Resale.

62

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Joseph Rowntree Foundation Registered Charity

STATEMENT OF ACCOUNTING POLICIES (continued)

8 Fixed Assets (continued)

(iii) Deferred Land

JRHT has a number of housing schemes where land has been purchased on deferred consideration terms. Where the terms allow for final payment of the land value to be made by a specified date, the liability has been recognised at the net present value of estimated future cash flows and the value of land within Housing Land and Buildings has been increased accordingly. Where no date for the purchase of the land exists, the liability is shown within contingent liabilities.

(iv) Hartrigg Oaks

Hartrigg Oaks represents the cost of construction of 152 bungalows, 43 rooms in the Care Centre, and communal facilities, together with apportioned management expenses, start-up costs, and directly attributable finance costs incurred up to completion.

On subsequent sales, when a new lease for the occupation of a bungalow at Hartrigg Oaks is entered into, the cost of the bungalow is restated at the Fully Refundable Residence Fee, or equivalent sum, included in the lease for that bungalow.

(v) Other Land and Buildings

Other Land and Buildings, which are held to support the wider social housing community or which are let at sub-market rents, are treated as 'property, plant and equipment' and are stated at cost. Cost of Other Land and Buildings includes directly attributable management expenses and directly attributable finance costs which are capitalised until the property reaches practical completion.

9 Homebuy

Under the Homebuy loan arrangements JRHT has made loans to individuals to enable them to purchase a property. The loan is equivalent to a specified percentage, ranging from 12½% to 30% of the market value of the property. No interest is charged on the loan but JRHT is entitled to receive the specified percentage of the market value of the property which is credited in full to interest receivable in the Statement of Financial Activities when it is sold. The loans are secured on the properties to which they relate. This scheme is supported by Homes England through the provision of Social Housing Grant which has been recognised as a revenue grant when received.

10 Depreciation and Amortisation

(i) Housing Land and Buildings

No depreciation is provided on freehold land.

Housing Properties are categorised into their main components and these components are depreciated over their estimated useful economic lives to their estimated residual value. Depreciation of Housing Properties and their components are calculated at the following rates:

Structure of Housing Properties built since 1 January 2000: over 100 years Structure of Housing Properties built prior to 1 January 2000:-

Housing Properties built before 1950: over 50 years from 1 January 2000

Housing Properties built since 1950: over the balance of 100 years from 1 January 2000

Roofs: over 45 years

Windows: over 35 years Boilers : over 15 years Kitchens: over 25 years Mechanical Systems: over 20 to 40 years

Bathrooms: over 30 years

Lifts: over 30 years Fire Protection: over 20 years

Resident Safety and Security Equipment: over 20 years

63

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Joseph Rowntree Foundation Registered Charity

STATEMENT OF ACCOUNTING POLICIES (continued)

10 Depreciation and Amortisation (continued)

(ii) Shared Ownership Properties

No depreciation is provided on freehold land.

Shared Ownership properties are depreciated over their estimated useful economic lives to their estimated residual value. Under shared ownership, residents may acquire additional shares in the property and ultimately own the property outright, known as 'staircasing out'. The useful economic life is therefore dependent upon choices made by residents. Based on past experience of 'staircasing out', an estimated useful economic life of 70 years has been applied to the structure of shared ownership properties .

(iii) Hartrigg Oaks

The buildings at Hartrigg Oaks are depreciated on a straight line basis, so as to write down the net book value of the buildings to their estimated residual value over their estimated useful economic lives. Depreciation is calculated over the balance of 100 years from 1 January 2000.

(iv) Other Land and Buildings

Other Buildings are depreciated on a straight line basis, so as to write down the net book value of the buildings to their estimated residual value over their estimated useful economic lives at rates ranging from fifteen to fifty years.

Other Buildings more than 50 years old at 1 January 2000 and those from which no financial benefit is received have been fully depreciated.

The Group's freehold offices at The Homestead, 40 Water End, York are maintained to a high standard by carrying out a continuing and planned programme of refurbishment and maintenance. As a consequence, the buildings are estimated to have an outstanding economic life of a minimum of 100 years: the charge for depreciation is, therefore, immaterial so no provision has been included in the Accounts.

(v) Vehicles, Furniture and Equipment

Vehicles, Furniture and Equipment are written off over five years by a straight line method. Computer Equipment is written off over three years by a straight line method. Kitchen fittings and equipment at the newly refurbished Folk Hall New Earswick are written off at various rates ranging between 8 and 40 years by a straight line method.

(vi) Intangible Fixed Assets

Computer software is written off over five years by a straight line method.

11 Government Grants

Government grants includes grant receivable from Homes England, local authorities and other government agencies. All government grants received are credited to restricted funds providing any performance conditions have been met. Government grants released on sale of a property may be repayable but are normally available to be recycled and are credited to a Recycled Capital Grant Fund and included in the Balance Sheet in creditors. Where properties are under construction at the reporting date, associated government grant is shown in the Balance Sheet as deferred government grant.

64

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Joseph Rowntree Foundation Registered Charity

STATEMENT OF ACCOUNTING POLICIES (continued)

12 Other Grants

Other Grants, which includes legacies and other donations, are recognised as revenue when the grant is receivable

13 Deferred Income- Amounts Received in Advance

JRHT has entered into Leases in which it is required to defer income to match against future expenditure on maintenance and repairs and equipment from sums collected via the service charge. Interest is added to the sums set aside at JRHT's marginal cost of borrowing.

14 Hartrigg Oaks Capitalised Community Fees

Hartrigg Oaks Capitalised Community Fees represent sums paid in advance by residents at Hartrigg Oaks towards the Community Fee. Capitalised Community Fees are not refundable when a resident leaves Hartrigg Oaks on a permanent basis. If they leave within the first 56 months of residence, a partial repayment is made. Capitalised Community Fees are amortised in the Accounts over the anticipated lives of the residents at a rate based on advice from JRHT's actuaries.

15 Recycled Capital Grant Fund

Following the full sale of a rented property (other than under the Voluntary Purchase Grant or Social Homebuy programmes), the demolition of a property, the partial sale of a shared ownership property or upon a Homebuy redemption, the Social Housing Grant attributable to that property is transferred to the Recycled Capital Grant Fund. Sums in that Fund must be applied in accordance with criteria established by Homes England.

16 Hartrigg Oaks Residence Fees

Hartrigg Oaks Residence Fees represents sums received from residents under the Lease and Care Agreements at Hartrigg Oaks. Fully Refundable Residence Fees are refundable in the original sum within 14 days of a resident leaving Hartrigg Oaks on a permanent basis. No interest is payable by JRHT on the sums received. Non-refundable Residence Fees are not refundable when a resident leaves Hartrigg Oaks on a permanent basis. If they leave within the first 56 months of residence, a partial repayment is made. Non-refundable Residence Fees are amortised in the Accounts over the anticipated lives of the residents at a rate based on advice from JRHT's actuaries.

17 Bonds and Loan Stock

JRHT has issued Bonds and Loan Stock at its Residential Care Homes. Residents who take up Bonds or Loan Stock are entitled to a rebate on their fee. Any interest which is earned on the Bonds or Stock in excess of the rebates given is available to provide Bursary Support to those residents in the Homes who are unable to meet the full fee. Repayments are made when a resident ceases to be in occupation or following a re-assessment of a resident's financial position.

Bonds and Loan Stock are recognised in the Statement of Financial Position at the Net Present Value of the estimated future cash flows. The timing of future payments, which will be triggered when a resident ceases occupation, are uncertain and it has been assumed that one in eight residents will cease occupation in any one year based on past experience

18 Cost of raising funds - Investment Management Costs

Investment management costs consist of fees paid to investment managers, for investment advice, costs incurred in managing JRF's portfolio and costs of direct property investments.

Certain fees are performance related and are payable if an investment manager delivers an out-performance versus the relevant benchmark. An accrual has been raised for amounts which relate to past performance and which fall due for payment within the following accounting year.

Where fees paid or due to investment managers have been deducted from either distributions or the asset value and are available from asset managers, these are all adjusted to ensure that the financial statements reflect the gross amounts.

65

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Joseph Rowntree Foundation Registered Charity

STATEMENT OF ACCOUNTING POLICIES (continued)

19 Charitable activities - Grant Commitments

Grant commitments are recognised in full in the year where there is a legal or unconditional obligation to the third party. Grant commitments for which expenditure was outstanding at the year-end are shown as liabilities in the Balance Sheet.

20 Charitable activities - Support and Governance Costs

Support costs comprise staff costs and associated overheads incurred on staff directly engaged in the management, dissemination, influencing and demonstration of the results of work funded by JRF, together with staff costs and associated overheads incurred by teams providing central services.

21 Employee costs

Employee costs include liabilities for the cost of all benefits which employees are entitled to but which were unpaid at the Balance Sheet date.

22 Retirement Benefits

JRF participates in the Social Housing Pension Scheme (SHPS) which is a multi-employer defined benefit scheme which is in actuarial deficit and JRF is committed to meeting the cost of past service deficits at a pre-determined rate until March 2028. These contributions are accounted on a defined benefits basis. (see 5 ii above)

The defined benefit scheme was closed on 1 April 2017. Employer contributions to direct contribution schemes are charged to the Statement of Financial Activities in the year they are incurred.

23 Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs and are measured subsequently at amortised cost using the effective interest method, less any impairment.

24 Creditors

Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest rate method.

25 Cash and cash equivalents

Cash and cash equivalents comprise cash balances with banks and any funds held as cash with investment managers.

66

Joseph Rowntree Foundation Registered Charity

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NOTES TO THE ACCOUNTS

1 Investment Income

Investment Income
Quoted Investments
UK Fixed Interest and Index Linked
UK Equities
Overseas Fixed Interest and Index Linked
Overseas Equities
Other Investments
Other Investments
Property Unit Trusts
Social Investments
Directly Managed Investment Properties
Other income
Interest receivable/(payable) (net)
Other Income
Raising funds - investment management
Investment management fees
Expenditure on Social Investments
Expenditure on directly managed investment properties
Rents and other income net of voids and bad debts
Interest payable/(receivable) represents sums received on Hartrigg Oaks loans and cash held for investment net of over
Other		 2022
2021
Restricted
Unrestricted
Total
Total
£'000
£'000
£'000
£'000
-
44
44
93
-
84
84
376
-
21
21
25
-
10,460
10,460
4,834
-
98
98
-
-
574
574
515
-
214
214
275
135
63
198
191
138
(132)
6
(98)
273
11,426
11,699
6,211
2022
2021
Restricted
Unrestricted
Total
Total
£'000
£'000
£'000
£'000
-
120
120
3
draft interest.
-
120
120
3
Unrestricted
2022
2021
Restricted
Total
Total
£'000
£'000
£'000
£'000
-
1,475
1,475
5,249
10
49
59
160
-
18
18
13
10
1,542
1,552
5,422

4 Grant Commitments The Group funds external activity to support its outcomes, details of which are included in the Trustees' Annual Report. All grant commitments relate to unrestricted funds and individual projects committed during the year within the Group's programmes, in excess of £25,000, are set out below.

Project
Inclusive Growth Network
Centre for Progressive Policy
Poverty Strategy Commission: Influencing and shaping anti-poverty
debate and action
Legatum Institute
Capturing insights from people in poverty – the prototype
Humankind Research
Rowntree Society
Rowntree Society
Bevan Foundation
Bevan Foundation
Good Ancestors Movement
Good Ancestor Movement
APLE Collective
JRF
Stigma co-design programme
JRF
Collaborative working on place based journey in York
New Constellations
Resolve collective
Resolve
Articulating economic alternatives
UCL Policy Lab
Bureau of Investigative Journalism to run a year-long investigation into
the exploitation of ethnic minority women in the gig economy, largely in
cleaning and care work
JRF
Talking about housing: mobilisation phase with Frameworks UK
design the inquiry question for the larger partnership
New Constellations
Support for tackling low wage and insecure work and facilitation of ‘Three
Horizons’ framework discussions on the role of finance in tackling poverty
ShareAction
Next Steps to a Just & Sustainable Housing System in Scotland
University of Glasgow
Extension of MIS to account for Covid volatility
Loughborough Univeristy
Building a social movement to tackle poverty
Church Action on Poverty
Emerging Futures Fund Co-Design Group
JRF
Bring Energy Home
Britain ReMade Futures Ltd
Core funding for Breakthrough Impact
Breakthrough Impact
Designing Out Destitution and Deep Poverty
New Local
Housing Subsidies and Affordability
Tony Blair Institute for Global
Change
Unlocking the Flexibility Trap: 10 years on
Timewise Foundation
A Minimum Income Guarantee for Scotland
IPPR Scotland and Robertson Trust
Social Finance
Supporting the development of the funder collaborative
Centre for Knowledge Equity
Scotland Insights Project
Savanta
Community Voices Programme - Somali Welfare Trust
Somalia Welfare Trust
Growing the Grassroots project
Covic Power Fund
Lessons learnt from the Talking About Poverty project
Rights Evaluation Studio
Ethnicity and the labour market in Glasgow
The Collective
Dundee fighting for fairness
Faith in Community Dundee
Ecosystem Mapping & External Engagement
Connected by Data
focussed on the potential for a housing market downturn and the policy
interventions needed to respond to it
OnPlace
PhD Studentships
York St John University
York Big Tent of Ideas
The Big Tent
We're right here funding
Locality
Women in Journalism
Women In Journalism Scotland
Destitute Britain
JRF
National Listening Campaign
Community Organisers Limited
Funders for Race Alliance
Equally Ours
How the pandemic has impacted on public attitudes to poverty
Britain Thinks
End Poverty Edinburgh
The Poverty Alliance
Capturing the insights of people living in poverty: a feasibility study
Humankind Research
Grants under £25,000
Total grants linked to JRF objectives
Other Non Research and Development Grants made were:
Strategic Support
The Homestead Park
Regional Grants (Note i)
York
Hartlepool
Write-back projects approved in previous years no longer required
Note (i)
Regional Grants comprised:-
Organisation
Developing models & tools to provide timely insight on poverty issues (Data & Digital)		 £'000
735
300
199
135
129
126
123
116
106
101
95
91
83
80
76
75
66
66
65
60
60
58
52
52
50
50
50
49
47
47
45
42
41
35
31
30
30
30
30
30
30
27
26
26
25
419
4,239
428
336
246
(58)
5,191
£'000
125
121
246

Further information on the grant commitments in the year is available in the Trustees' Annual Report and on the JRF website. Where JRF is identified as the organisation it is holding funds on behalf of others to distribute.

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Joseph Rowntree Foundation Registered Charity

4
Grant Commitments (continued)
Project
Destitution in the UK Research Project (2022 - 2023)
Heriot-Watt University
Fair Way Scotland (Homelessness and Destitution)
Heriot-Watt University
Living standards, poverty and inequality 2021 - 2023
Institute for Fiscal Studies
Sheffield Action Narrative Project
Blavatnik School of Government
Fair by Design Campaign 2021 - 2024
Barrow Cadbury Trust
Social Metrics Commission : Launch of a Poverty Strategy Commission and policy simulator model
Legatum Institute
Building upon the growing impact of Poverty Truth Commissions
Poverty Truth Network
Collaborative funding with Lankelly Chase of six grassroots organisations
Fundng 6 grassroots organisations
Reframing Race: Testing times for new frames
Voice4Change England
Co-producing solutions with lower-income renters in Scotland
Edge Hill University
Carers' Co-design Project
London Unemployed Strategies
Poverty Truth Community 2021 – 2024: Partnership Agreement
Faith in Community Scotland
Bevan Foundation Partnership 2022
Bevan Foundation
Assessing the impact of the Local Housing Allowance on poverty and low-income households
Manchester Metropolitan University
A Living Wage in Social Care
Citizens UK
Community Voices Programme - Mums on a Mission
Mums on a Mission
Little Village Support Funding
Little Village
The Orwell Prize for Exposing Britain’s Social Evils 2022
The Orwell Foundation
Core Funding to ReGenerate Partnership 2022
RE: generate Trust
Repairing our Social Fabric
Onward
Support the development of a national structure for the Povery Truth Network
Poverty Truth Network
Documenting the lives of people in Temporary Accommodation: Living in Limbo 2021
Shelter
The financial position of low income households as Covid support comes to an end
Savanta
Dundee Fighting for Fairness 2021 – 2023: Partnership Agreement
Faith in Community Dundee
We’re Right Here: the campaign for community power
Power to Change
Action on Poverty and Hardship Bursaries Funding
Staffordshire University
Amazon Fife community project
Achievegood Ltd
A centre ground on race: conversations on building a diverse society: essay collection
Bright Blue
Commission on Poverty and Place
Fabian Society
End Poverty Edinburgh
The Poverty Alliance
Grants under £25,000
Total Research and Development Grants
Other Non Research and Development Grants made were:
Strategic Support
The Homestead Park
Regional Grants (Note i)
York
Hartlepool
Regional Grants comprised:-
Write-back projects approved in previous years no longer required
Note (i)
Individual projects committed during 2021 within programmes, in excess of £25,000 all of which relate to unrestricted funds, are set out below.
Organisation		 £'000
494
296
235
229
150
150
120
100
92
83
82
75
75
59
55
43
40
40
36
36
35
35
31
31
30
30
29
28
28
25
315
3,107
125
320
191
(87)
3,656
£'000
126
65
191

Group support and governance costs, all of which relate to unrestricted funds, are set out below:

Office costs
Travel and subsistence
Consultancy and professional fees
Governance (Note i)
(i) Governance
Trustees' travel and subsistence
Trustees' appointment
External Auditors' remuneration
External Auditors'- Non Audit Fees
Internal audit
Staff costs, including welfare, training and temporary staff
Trustees' meeting expenses and training		 2022
2021
£'000
£'000
8,299
7,433
2,347
1,604
113
43
792
1,173
164
154
11,715
10,407
2022
2021
£'000
£'000
3
4
3
2
-
19
47
45
4
5
107
79
164
154

All the above costs are inclusive of applicable VAT. Non audit fees comprised tax compliance and advisory work £4,392. (2021; Tax compliance services £5,231). Fees charged for the audit of subsidiaries, not included in the table above and inclusive of vat were JRHT £42,429 (2021; £36,605) and CEL £4,293 (2021; £3,704). Non-audit fees in relation to subsidiaries not included in the above table and inclusive of vat were JRHT £10,920 (2021; £9,980) and CEL £3,498 (2021; £3,180).

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7 Employee Information

(a) Staff Costs

Total staff costs incurred between the parent (JRF) and the subsidiary (JRHT) were:-

Wages and salaries
Retirement, redundancy and exit payments
National insurance contributions
Other pension costs (Note 8)		 Parent
JRHT
Group
Parent
JRHT
Group
£'000
£'000
£'000
£'000
£'000
£'000
5,823
11,663
17,486
5,825
12,555
18,380
276
261
537
164
144
308
643
1,013
1,656
595
975
1,570
346
549
895
351
647
998
7,088
13,486
20,574
6,935
14,321
21,256
2022
2021

Staff costs include a cost of living support payment to all staff, including directors, of £1,500 per employee. The average weekly number of Executive Directors and employees and full time equivalent (FTE) Officers and employees was:

Parent
Number of Executive Directors
Employees, including those on joint contracts with the subsidiary
Subsidiary		 Headcount No.
FTE No. Headcount No.
FTE No.
6
6
6
6
142
134
159
150
2021
2022
148
140
165
156
474
388
572
470
622
528
737
626

(b) Higher Paid Employees

The number of employees, excluding directors, whose full year, full time equivalent emoluments, including pension contributions and benefits in kind, employed by the Group in the following ranges were:-

2022 2021
£60,001 - £70,000 6 10
£70,001 - £80,000 12 4
£80,001 - £90,000 - 1
£90,001 - £100,000 - -

The above bandings includes one employee who left during the year. Equivalent annual remuneration places this employee in the banding £70,001 to £80,000. In addition one employee who joined during the year is included within in the equivalent annual remuneration band £60,001 to £70,000 and three employees who joined during the year are included in the equivalent annual remuneration band £70,001 to £80,000.

(c) Executive Directors and Key Management Personnel

Group Chief Executive
Director of Communication and Public Engagement from 1 April 2021
Director of Evidence and Policy from 21 June 2021
Director of Emerging Futures from 7 September 2021
JRHT Executive Director
Director of Finance
Director of Corporate Services
Acting JRF Executive Director - from 20 April 2020 to 20 June 2021
The aggregate remuneration of Key Management personnel was as follow
Basic Salary
Compensation for loss of office
Benefits in Kind
Pension Contributions
Employer's NIC		 Basic
Salary
Benefits
in kind
Pension contri-
butions
Tota
Benefit
£'000
£'000
£'000
£'00
152
-
9
16
100
-
6
10
100
-
6
10
87
-
5
9
100
-
6
10
100
-
6
10
100
-
6
10
-
-
-

2022		 l
s
Basic
Salary
Benefits in kind
Pension
contri-
butions
Total Benefits
0
£'000
£'000
£'000
£'000
1
151
-
9
160
6
74
1
4
79
6
52
-
3
55
2
25
8
2
35
6
98
-
6
104
6
98
-
6
104
6
98
-
6
104
-
41
-
2
43
2021
739
-
44
78		 3
637
9
38
684
s:- 2022
2021
£'000
£'000
739
637
-
-
-
9
44
38
97
79
880
763

The emoluments of the highest paid director, the Group Chief Executive, excluding pension contributions were £152,000. (2021: the Group Chief Executive £151,000 )

The benefits in kind of the Director of Communication and Public Engagement and the Director of Emerging Futures in 2021 were in relation to relocation expenditure.

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Joseph Rowntree Foundation Registered Charity

8 Social Housing Pension Scheme

JRF participated in the Social housing Pension Scheme (SHPS), a multi-employer scheme which provides benefits to some 500 non-associated employers. The Scheme is a defined benefit scheme in the UK. The SHPS scheme was closed to staff from 1 April 2017.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the pensions regulator and Technical Actuarial Standards issued by the Financial reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK. The last triennial valuation of the scheme for funding purposes was carried out as at 30 September 2020. This valuation revealed a deficit of £1,560m. A recovery plan has been put in place with the aim of removing this deficit by 31 March 2028.

The scheme is classified as a "last-man standing arrangement". Therefore JRF is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the Scheme deficit following withdrawal from the Scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the Scheme. JRF is meeting the past service deficit contribution which has arisen from the 2008 , 2011 , 2014 , 2017 and 2020 actuarial valuations.

a Deficit contributions schedule

Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
b
Discount rate
Inflation (RPI)
Inflation (CPI)
Salary Growth
c
The mortality assumptions adopted at 31 December 2022 imply the following life
expectancies at the age of 65:
Male retiring in 2022
Female retiring in 2022
Male retiring in 2042
Female retiring in 2042
d
Expenses (note 5)
Interest cost (note 2)
Total charged to statement of financial activities
e
Defined benefit obligation at beginning of year
Expenses
Interest cost
Actuarial loss/(gain) due to Scheme experience
Actuarial (gain)/loss due to change in demographic assumptions
Actuarial gain due to change in financial assumptions
Benefits paid
Total charged to statement of financial activities
Average life expectations
Amounts recognised in the statement of financial activities
Key financial assumptions
The allowance for commutation of pension for cash at retirement was 75% in both 2022 a
Reconciliation of defined benefit obligation		 2022
2021
£'000
£'000
1,788
1,693
1,878
1,788
1,971
1,878
2,069
1,971
2,172
2,069
549
2,172
-
549
2022
2021
% pa
% pa
5.00
1.83
3.14
3.34
2.78
2.92
3.78
3.92
2022
2021
Years
Years
21.10
21.60
23.70
23.50
22.40
22.90
25.20
25.10
2022
2021
£'000
£'000
47
49
150
203
197
252
2022
2021
£'000
£'000
67,062
69,223
47
49
1,206
976
7,520
(622)
(707)
259
(31,313)
(906)
(2,287)
(1,917)
41,528
67,062
nd 2021.
f
Fair value of Scheme assets at beginning of year
Interest income on Scheme assets
Experience (loss)/gain on plan assets (excluding amounts included in interest income)
Contributions by JRF
Benefits paid
Fair value of Scheme assets at end of year
Reconciliation of fair value of Scheme assets		 2022
2021
£'000
£'000
58,025
54,227
1,056
773
(26,282)
3,300
1,731
1,642
(2,287)
(1,917)
32,243
58,025

g Amounts recognised in the balance sheet

Fair value of Scheme assets
Actuarial value of scheme liabilities
Deficit in the scheme		 2022
2021
£'000
£'000
32,243
58,025
(41,528)
(67,062)
(9,285)
(9,037)

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Joseph Rowntree Foundation Registered Charity

Global Equity
Absolute Return
Distressed Opportunities
Credit Relative Value
Alternative Risk Premia
Fund of Hedge funds
Emerging Markets Debt
Risk Sharing
Insurance-Linked Securities
Property
Infrastructure
Private debt
Opportunistic Illiquid Credit
High Yield
Opportunistic Credit
Cash
Corporate Bond Fund
Liquid Credit
Long Lease Property
Secured Income
Liability Driven Investment
Currency Hedging
Net Current assets
Total Assets
Interest on scheme assets
Actuarial (loss)/gains
Actual return on assets
(Loss)/gains on Scheme assets
Experience (loss)/gain on scheme liabilities
Gain on change in assumptions (financial and demographic)
Actual return on assets
Analysis of return on assets recognised in other comprehensive income
Analysis of return on assets		 2022
2021
£'000
£'000
305
10,840
319
2,736
1,490
1,845
1,420
1,745
54
2,166
-
2
41
2,355
2,332
1,713
1,212
1,241
1,483
1,351
4,592
3,593
1,532
1,299
1,939
1,700
16
2
-
380
392
264
4
3,841
-
393
1,121
1,280
1,496
1,985
13,280
17,245
236
(92)
(1,021)
141
32,243
58,025
2022
2021
£'000
£'000
1,056
773
(26,282)
3,300
(25,226)
4,073
2022
2021
£'000
£'000
(26,282)
3,300
(7,520)
622
32,020
647
(1,782)
4,569

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Joseph Rowntree Foundation Registered Charity

9 Joseph Rowntree Housing Trust Turnover and Operating Costs

The results of JRHT, available on its website, prepared under the Housing SORP 2018 but modified to the Charities SORP for the purpose of consolidation are :-

Turnover
Grants Received
Operating Costs
Staff Costs
Other Costs
Interest Payable
Gain on Disposal of Fixed Assets
Property Depreciation
Taxation
Recycled grant repaid
Gain on revaluation of investment properties
Income from investment properties
Expenditure on investment properties
Interest Receivable		 £'000
£'000
£'000
£'000
25,544
25,339
-
2,672
25,544
28,011
(14,829)
(15,693)
(7,377)
(5,481)
(2,484)
(1,948)
1,155
674
(3,008)
(3,008)
(118)
-
(348)
(266)
(27,009)
(25,722)
202
-
135
128
(10)
(12)
138
106
(1,000)
2,511
2022
2021

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Joseph Rowntree Foundation Registered Charity

10 Tangible Fixed Assets

Group

Cost
At 1 January 2022
Additions
Disposals
Transfer to Assets held for sale
At 31 December 2022
Depreciation
At 1 January 2022
Charge in the year
Disposals
Transfer to Assets held for sale
At 31 December 2022
Net Book Value
At 1 January 2022
At 31 December 2022
Properties are represented by:
Freehold Land and Buildings
Long Leasehold Land and Buildings		 £'000
227,602
5,187
(2,477)
(2,728)
Properties		 £'000
531
813
-
-
Properties
under
construction		 Total
£'000
£'000
2,321
230,454
67
6,067
(570)
(3,047)
-
(2,728)
1,818
230,746
1,835
36,136
169
3,609
(560)
(1,238)
-
(812)
1,444
37,695
486
194,318
374
193,051
Furniture
and
Equip-ment
227,584 1,344
34,301
3,440
(678)
(812)		 -
-
-
-
36,251 -
193,301 531
191,333 1,344
184,586
6,747
191,333

Properties consists of Social Housing Properties held for letting, business and office premises including solar panels, communal areas at extra care schemes, non- housing property in New Earswick and Derwenthorpe and the continuing care retirement community at Hartrigg Oaks, New Earswick.

Parent

Cost
At 1 January 2022
Additions
Disposals
At 31 December 2022
Depreciation
At 1 January 2022
Charge in the year
Disposals
At 31 December 2022
Net Book Value
At 1 January 2022
At 31 December 2022		 £'000
2,342
-
-
Properties		 Total
£'000
£'000
1,053
3,395
67
67
(447)
(447)
673
3,015
952
952
46
46
(437)
(437)
561
561
101
2,443
112
2,454
Furniture
and
Equipment
2,342
-
-
-
-
2,342
2,342

Properties consists of JRF's freehold offices at The Homestead, York.

JRF has a reversionary interest in the property known as Ouse Lea which will mature in the year 2119. No value has been placed upon the reversion in these Financial Statements.

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Joseph Rowntree Foundation Registered Charity

11 Intangible Fixed Assets

Group
Cost
At 1 January 2022
Additions
Disposals
At 31 December 2022
Amortisation
At 1 January 2022
Charge in the year
Disposals
At 31 December 2022
Net Book Value
At 1 January 2022
At 31 December 2022
Parent
Cost
At 1 January 2022
Additions
Disposals
At 31 December 2022
Amortisation
At 1 January 2022
Charge in the year
Disposals
At 31 December 2022
Net Book Value
At 1 January 2022
At 31 December 2022
12
Homebuy Loans
Group
At 1 January
Repayments
At 31 December
There are no Homebuy Loans in the Parent.		 IT Software
£'000
1,998
196
(283)
1,911
1,652
134
(281)
1,505
346
406
IT Software
£'000
1,938
189
(224)
1,903
1,592
134
(222)
1,504
346
399
2022
2021
£'000
£'000
2,227
2,356
(205)
(129)
2,022
2,227

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Joseph Rowntree Foundation Registered Charity

13 Investments

Group

Quoted Investments
UK Index Linked
UK Fixed Interest
UK Equities
Overseas Index Linked
Overseas Fixed Interest
Overseas Equities
Other Investments
Other
Property Unit Trusts
Investment Properties
Directly Managed
Social Investments
Unquoted Investments
Clifton Estate Limited
Cash held for Investment		 Market
Value
1.1.22
£'000
10,558
934
8,713
7,051
-
435,356		 Sales/
Repay-
ments
£'000
£'000
7,003
(8,274)
5,100
(5,786)
1,993
(9,416)
8,981
(12,018)
10,619
(7,460)
15,064
(19,766)
48,760
(62,720)
15,261
(21,071)
-
(64)
15,261
(21,135)
-
-
1,424
(1,153)
-
-
-
-
754
-
66,199
(85,008)
Purchases/
Additions		 Sales/
Repay-
ments
£'000
£'000
7,003
(8,274)
5,100
(5,786)
1,993
(9,416)
8,981
(12,018)
10,619
(7,460)
15,064
(19,766)
48,760
(62,720)
15,261
(21,071)
-
(64)
15,261
(21,135)
-
-
1,424
(1,153)
-
-
-
-
754
-
66,199
(85,008)
Purchases/
Additions		 Gains/
(Losses)
£'000
(2,863)
(9)
33
(260)
117
(49,571)		 Market
Value
31.12.22
Cost
31.12.22
£'000
£'000
6,424
7,036
239
239
1,323
1,058
3,754
3,941
3,276
3,257
381,083
230,707
396,099
246,238
12,775
13,049
13,106
15,089
25,881
28,138
3,400
2,238
9,864
9,913
-
17
-
17
2,467
2,467
437,711
289,011
462,612 48,760 (62,720) (52,553)
17,337
14,328		 15,261
-		 (21,071)
(64)		 1,248
(1,158)
31,665 15,261 (21,135) 90
4,448
9,236
-		 -
1,424
-		 -
(1,153)
-		 (1,048)
357
-
- - - -
1,713 754 - -
509,674 66,199 (85,008) (53,154)

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Joseph Rowntree Foundation Registered Charity

Parent

Quoted Investments
UK Index Linked
UK Fixed Interest
UK Equities
Overseas Index Linked
Overseas Fixed Interest
Overseas Equities
Other Investments
Other
Property Unit Trusts
Investment Properties
Directly Managed
Social Investments
Unquoted Investments
Clifton Estate Limited
Amounts owed by Group undertakings
Hartrigg Oaks Loans- Fixed
Cash held for Investment		 Market
Value
1.1.22
£'000
10,558
934
8,713
7,051
-
435,356		 Sales/
Repay-
ments
£'000
£'000
7,003
(8,274)
5,100
(5,786)
1,993
(9,416)
8,981
(12,018)
10,619
(7,460)
15,064
(19,766)
48,760
(62,720)
15,261
(21,071)
-
(64)
15,261
(21,135)
-
-
1,424
(1,153)
-
-
-
-
-
(60)
-
(60)
754
-
66,199
(85,068)
Purchases/
Additions		 Sales/
Repay-
ments
£'000
£'000
7,003
(8,274)
5,100
(5,786)
1,993
(9,416)
8,981
(12,018)
10,619
(7,460)
15,064
(19,766)
48,760
(62,720)
15,261
(21,071)
-
(64)
15,261
(21,135)
-
-
1,424
(1,153)
-
-
-
-
-
(60)
-
(60)
754
-
66,199
(85,068)
Purchases/
Additions		 Gains/
(Losses)
£'000
(2,863)
(9)
33
(260)
117
(49,571)		 Market
Value
31.12.22
Cost
31.12.22
£'000
£'000
6,424
7,036
239
239
1,323
1,058
3,754
3,941
3,276
3,257
381,083
230,707
396,099
246,238
12,775
13,049
13,106
15,089
25,881
28,138
-
1,464
9,864
9,913
-
17
-
17
52
52
52
52
2,467
2,467
434,363
288,289
462,612 48,760 (62,720) (52,553)
17,337
14,328		 15,261
-		 (21,071)
(64)		 1,248
(1,158)
31,665 15,261 (21,135) 90
1,250
9,236
-		 -
1,424
-		 -
(1,153)
-		 (1,250)
357
-
- - - -
112 - (60) -
112 - (60) -
1,713 754 - -
506,588 66,199 (85,068) (53,356)

Other Investments represents holdings in unit trusts in gold and precious metals, credit and illiquid strategies and money market funds at the year end.

A formal revaluation of JRF's one investment property was carried out in December 2020 by an independent, qualified, chartered surveyor. The carrying value in the balance sheet reflects this valuation less a provision, given that the current lease expires in 2023 and the site is expected to be re-purposed.

JRF owns 100% of the Ordinary Share Capital of Clifton Estate Limited . No value has been placed on this shareholdings in the Accounts: in the opinion of the Trustees, any sum would be immaterial in the context of the JRF's total investment portfolio.

A parcel of land has been retained following the sale of the investment property known as Beverley House in 2019 but no value has been placed upon this in these financial statements as it is considered as not material.

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Joseph Rowntree Foundation Registered Charity

14 Properties held for sale

Group

Properties held for sale Group
Shared ownership properties
Completed properties
Work in progress
Housing Land and Buildings		 2022
2021
£'000
£'000
46
1,141
292
-
338
1,141
1,915
1,458
2,253
2,599

There are no properties held for sale in the parent undertaking.

15 Debtors

Rent arrears
Prepayments
Sundry debtors and accrued income
Creditors: Amounts falling due within one year
Outstanding Grant Commitments (Note 17)
Recycled Capital Grant
Rents in advance
Accruals
Other Creditors
Debt (note 18)
Creditors: Amounts falling due after more than one year
Outstanding Grant Commitments:
At 1 January
New grant commitments during year (Note 4)
Grants paid during year
Less: Amounts falling due within one year
(Note 16)
At 31 December
Deferred grant income on properties being Developed
Recycled Capital Grant
Deferred income- amounts received in advance
Deferred Land
Capitalised Community Fees
Residence Fees at Hartrigg Oaks
Bonds and Loan Stock
Debt (Note 18)		 2022
2021
2022
2021
£'000
£'000
£'000
£'000
315
347
-
-
380
254
365
334
1,776
1,250
240
270
2,471
1,851
605
604
2022
2021
2022
2021
£'000
£'000
£'000
£'000
3,700
3,180
3,700
3,180
524
288
-
-
341
318
-
-
2,023
3,670
342
1,755
3,340
2,340
914
606
1,021
19
-
-
10,949
9,815
4,956
5,541
2022
2021
2022
2021
£'000
£'000
£'000
£'000
3,573
2,779
3,573
2,779
5,191
5,664
20,258
5,664
(4,304)
(4,870)
(19,371)
(4,870)
4,460
3,573
4,460
3,573
(3,700)
(3,180)
(3,700)
(3,180)
760
393
760
393
-
-
-
-
1,622
1,523
-
-
3,798
3,813
-
-
3,933
3,234
-
-
2,398
2,429
-
-
31,800
30,607
-
-
794
869
-
-
45,664
59,186
-
-
90,769 102,054
760
393
Parent
Group
Parent
Group
Group
Parent

17 Creditors: Amounts falling due after more than one year

The timing of grant payments is largely dependent upon the submission of claims from the receiving institution. The classification of outstanding grant commitments between those payable within one year and those payable after more than one year is, therefore, not certain. The classification between those payable within one year and those payable after more than one year is based on an estimate.

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Joseph Rowntree Foundation Registered Charity

18 Debt Analysis

Group Borrowings are represented by :

Housing Loans (Note i)
THFC Bond (Note ii)
Note i
The Housing Loans comprise:-
Orchardbrook Ltd
Lloyds Banking Group plc Facility A
Lloyds Banking Group plc Facility B (Tranche 1)
Lloyds Banking Group plc Facility B (Tranche 2)
Handelsbanken Loan 1
Handelsbanken Loan 2		 2022
2021
£'000
£'000
31,685
44,205
15,000
15,000
46,685
59,205
2022
2021
£'000
£'000
685
705
10,000
10,000
8,000
8,000
5,000
5,000
8,000
8,000
-
12,500
31,685
44,205

(a) The loans from Orchardbrook Ltd are settled by equal half-yearly instalments of capital and interest over the estimated life of the scheme for which the loan was provided. The final instalments fall to be repaid in the period 2023 to 2047. The rates of interest are fixed and range from 9.25% to 15.875%. The loans are secured against 65 of JRHT's properties.

(b) Facility A from Lloyds Banking Group plc is for a 30 year term with a bullet repayment at a fixed rate of interest. The average rate charged during the year was 4.75%. The margins increase over the life of the loan so that from September 2030 the rate, including margins, is 4.83%. The loan is secured against 123 of JRHT's properties and is fully repayable on 9 December 2036.

(c) Facility B (Tranche 1) from Lloyds Banking Group plc is for a 28 year term with a bullet repayment at a fixed rate of interest. The interest rate charged during the year was 4.33%. The margins increase over the life of the loan, so that from 24 March 2036 the rate, including margins, is 4.38%. The loan is secured against 119 of JRHT's properties and with a final repayment due on 24 December 2037.

(d) Facility B (Tranche 2) from Lloyds Banking Group plc is for a 20 year term with repayments at 3 yearly intervals and a final repayment on 28 December 2034. Interest charged during the year was 3.57%. The margins increase over the life of the loan, so that from 28 March 2028 the rate, including margins, is 3.62%. The loan is secured against 86 of JRHT's properties.

(e) Handelsbanken Loan 1 represents a revolving credit facility of £8m . Interest is charged at a variable rate linked to SONIA: the average rate charged during the year was 2.63%. The Facility, which is available until June 2023, is secured against 128 of JRHT's properties.

(f) Handelsbanken Loan 2 represents a revolving credit facility of £15m . Interest is charged at a variable rate linked to SONIA: the average rate charged during the year inclusive of non- utilisation fees was 2.47%. The Facility, which is available until June 2023, is secured against 213 of JRHT's properties.

The Housing Loans are repayable in the following periods:-

The Housing Loans are repayable in the following periods:-
In one year or less (Note 16)
Between one and two years
Between two and five years
In five years or more		 £'000
£'000
£'000
1,021
19
24
1,021
1,074
4,074
29,566
39,091
30,664
44,186
31,685
44,205
2022
2021

Note ii

A bond of £15m from THFC was taken out in 2013. Interest is charged at a fixed rate of 5.2%. The bond is secured against 240 of the JRHT's properties and is repayable in 2043.

The THFC Bond is repayable in the following periods:-

In one year or less
Between one and two years
Between two and five years
In five years or more		 £'000
£'000
£'000
£'000
-
-
-
-
-
-
15,000
15,000
15,000
15,000
15,000
15,000
2022
2021

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Joseph Rowntree Foundation Registered Charity

19 Cash Flow from Operating Activities

Net expenditure before investment movements
in the year
Amortisation of Capitalised Community Fees
Surplus on sale of properties
Decrease/(Increase) in housing stock held for
sale
(Increase)/Decrease in debtors
Increase/(Decrease) in creditors
Increase/(Decrease) in Net Pension Liability
Net cash outflow from operating activities
Depreciation of tangible fixed assets
Amortisation of intangible fixed assets
Amortisation of Non-refundable Residence Fees
Decrease in Net Present Value of Loan Stock
Increase in outstanding grant commitments
(Increase)/Decrease in Stock of Materials		 £'000
3,609
134
(305)
(199)
(12)
887
(14)
(2,446)
346
(563)
2,260
248
2022		 £'000
£'000
£'000
(9,886)
(6,413)
3,593
129
(295)
(203)
18
794
12
(2,437)
(1,806)
29
(1,692)
(5,959)
3,945
(7,817)
(5,941)
(14,230)
2021

Total future minimum operating lease payments are set out below:

Within one year
Between two and five years
Over five years		 2022
2021
2022
2021
£'000
£'000
£'000
£'000
112
207
11
148
301
23
-
-
-
-
-
-
413
230
11
148
Group
Parent

Leases relate to shared office space in one location, vehicles and photocopiers.

The annual charge for rental of office space under operating leases was £97,025 (2021: £113,008)

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Joseph Rowntree Foundation Registered Charity

Financial Assets and Liabilities
Financial assets that are debt instruments measured at amortised cost
Financial liabilities measured at amortised cost
Financial liabilities that are measured at fair value through the surplus or
deficit		 2022
£'000
2021
£'000
2022
£'000
2021
£'000
10,910
10,604
556
3,328
(100,173) (110,598)
(5,610)
(5,829)
(10,079)
(9,906)
(9,285)
(9,037)
Group
Parent
(99,342) (109,900)
(14,339)
(11,538)

21 Financial Assets and Liabilities

Financial assets measured at amortised cost are represented by current assets excluding prepayments and accrued income.

Financial liabilities measured at amortised cost are represented by all short and long term liabilities excluding those measured at fair value and liabilities to HMRC.

Financial liabilities measured at fair value are represented by the deferred pension liability and deferred bonds and loan stock. The difference between the carrying amount and contractually obliged payments is:-

Carrying amount
Contractual Obligations		 2022
£'000
2021
£'000
2022
£'000
2021
£'000
10,079
9,906
9,906
9,037
10,749
10,411
9,906
9,037
Group
Parent
(670)
(505)
-
-

22 Restricted Funds Group

Balance at 1 January 2022
Income and movement in market value of investments
Expenditure
Transfer
Transfer of revaluation reserve to unrestricted reserve
Balance at 31 December 2022		 Income and
Expenditure
Reserve
Sales
Reinvestment
Reserve
Revaluation
Reserve
Total
£'000
£'000
£'000
£'000
89,090
1,084
9,464
99,638
26,019
-
-
26,019
(27,019)
-
-
(27,019)
(16)
16
-
-
70
-
(70)
-
88,144
1,100
9,394
98,638
Balance at 1 January 2021
Income and movement in market value of investments
Expenditure
Transfer
Transfer to income and expenditure reserve
Balance at 31 December 2021		 Income and
Expenditure
Reserve
Sales
Reinvestment
Reserve
Revaluation
Reserve
Total
£'000
£'000
£'000
£'000
86,511
1,082
9,534
97,127
28,245
-
-
28,245
(25,734)
-
-
(25,734)
(2)
2
-
-
70
-
(70)
-
89,090
1,084
9,464
99,638

There are no restricted funds in the parent entity.

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Joseph Rowntree Foundation Registered Charity

23 Analysis of Net Assets between Funds

Fixed Assets
Properties
Property schemes in progress
Motor vehicles & equipment
Intangible Fixed Assets
Homebuy Loans
Investments
Current Assets Less Liabilities
Total Net Assets
At 31 December 2021
Fixed Assets
Properties
Property schemes in progress
Motor vehicles & equipment
Intangible Fixed Assets
Homebuy Loans
Investments
Current Assets Less Liabilities
Total Net Assets		 Restricted
Funds
Unrestricted
Funds
Total
Unrestricted
Funds
Total
£'000
£'000
£'000
£'000
£'000
188,991
2,342
191,333
2,342
2,342
1,344
-
1,344
-
-
262
112
374
112
112
7
399
406
399
399
2,022
-
2,022
-
-
3,400
434,311
437,711
434,311
434,311
(97,388)
(2,325)
(99,713)
(2,325)
(2,325)
Group
Parent
98,638
434,839
533,477
434,839
434,839
Restricted
Funds
Unrestricted
Funds
Total
Unrestricted
Funds
Total
£'000
£'000
£'000
£'000
£'000
190,959
2,342
193,301
2,342
2,342
531
-
531
-
-
385
101
486
101
101
-
346
346
346
346
2,227
-
2,227
-
-
3,198
506,476
509,674
506,476
506,476
(97,662)
(12,386) (110,048)
(12,386)
(12,386)
Group
Parent
99,638
496,879
596,517
496,879
496,879

24 Capital Commitments and Contingent Liabilities

At the balance sheet date, commitments made by JRHT in relation to the construction or refurbishment of property amounted to £7.14m (2021: £5.240m). There is a contingent liability for deferred land payments with no fixed repayment date of £4,265,000.

JRF has been notified by the Trustee of the Social Housing Pension Scheme (SHPS) that it has performed a review of the changes made to the Scheme's benefits over the years and the result is that there is uncertainty surrounding some of these changes. The Trustee has been advised to seek clarification from the Court on these items. This process is ongoing and the matter is unlikely to be resolved before the end of 2024 at the earliest. It is recognised that this could potentially impact the Scheme liabilities, but until Court directions are received, it is not possible to calculate the impact of this issue, particularly on an individual employer basis, with any accuracy at this time. No adjustment has been made in these financial ststements in respect of this potential issue.

25 Related Party Transactions

Joseph Rowntree Housing Trust (JRHT) - Related Party Transactions

(a) Loans

Outstanding loans to JRHT at 31 December 2022 amounted to £51,596 (2021: £111,976). Loans advanced were £nil and loan repayments amounted to £60,380 Interest charged on loans to JRHT during the year was £6,434 (2021: £10,443).

(b) Loan Facility

JRF provides a facility for up to £25,000,000 to JRHT. Interest will be charged at market value rates, taking external advice as necessary. As at 31 December 2022, none of this facility had been drawn (2021: £Nil).

(c) Grants

JRF provided a bursary support grant of £314,000 to JRHT in 2022. The amount provided in 2021 was £314,000.

JRF provided a revenue support grant to JRHT in 2022 of £1,009,000 (2021: £1,200,000).

JRF provided a grant to JRHT in 2022 as part of its house building programme of £12,371,000 (2021: £66,000). This is the third drawdown of grants of up to £50m agreed with JRHT to create 1,000 new homes over 10 years.

JRF provided a grant of £536,000 to JRHT in 2022 towards the direct running costs of heritage assets. The amount provided in 2021 was £428,000

JRF provided a grant of £837,000 to JRHT to provide cost of living assistance to staff. The amount provided in 2021 was £Nil.

(d) Overhead Recharge

An overhead recharge was charged by JRF to JRHT during the year. The amount of the recharge in 2022 was £2,231,000 (2021: £2,227,000)

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Joseph Rowntree Foundation Registered Charity

26 Clifton Estate Limited (CE) - Related Party Transactions

JRF holds all the share capital of CE, a property management and development company operating in York. At the year end, two of the Directors of CE were also Trustees of JRF. No Trustee or Director received any payment in respect of this service.

27 Trustees' Related Party Transactions

One grant for £75,000 in respect of the "Next Steps to a Just and Sustainable Housing System in Scotland" was made to the University of Glasgow where one Trustee, Professor Carol Tannahill OBE, is an Honorary Professor. There were no Trustee related pary transactions in 2021.

28 Directors' Related Party Transactions

The Executive Director JRHT also holds a non executive post with Leeds Federated Housing Association (LFHA). LFHA provided cleaning services to JRHT of less than £5,000 during the year. The Executive Director JRHT is not involved in any aspect of the contract. (2021: Nil)

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Joseph Rowntree Foundation Registered Charity

COMPARATIVE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

Note
INCOME AND ENDOWMENTS FROM:
Investments
1
Charitable Activities
Housing Association turnover
9
Other income
2
TOTAL INCOME
EXPENDITURE ON:
Raising funds - investment management
3
Charitable activities
Grant commitments
4
Support and governance costs
5
Housing Association operating costs
9
TOTAL EXPENDITURE BEFORE INVESTMENT MOVEMENTS
NET EXPENDITURE BEFORE INVESTMENT MOVEMENTS
Other Comprehensive income
Actuarial Loss in respect of Social Housing Pension Scheme
8
Re-measurement of Social Housing Pension obligation
8
TOTAL OTHER COMPREHENSIVE INCOME
Investment Movements
Gain on Quoted Investments
12
Gain on Other Investments
12
Gain/(Loss) on Directly Managed Investment Properties
12
TOTAL INVESTMENT MOVEMENTS
TOTAL COMPREHENSIVE INCOME
Total Funds brought forward at 1 January
TOTAL FUNDS CARRIED FORWARD AT
31 DECEMBER		 2021
Restricted
Unrestricted
Total
£'000
£'000
£'000
234
5,977
6,211
28,011
-
28,011
-
3
3
28,245
5,980
34,225
(12)
(5,410)
(5,422)
-
(3,656)
(3,656)
-
(10,407)
(10,407)
(25,722)
-
(25,722)
(25,734)
(19,473)
(45,207)
2,511
(13,493)
(10,982)
-
4,569
4,569
-
-
-
-
4,569
4,569
-
58,642
58,642
-
1,838
1,838
-
-
-
-
60,480
60,480
2,511
51,556
54,067
97,127
445,323
542,450
99,638
496,879
596,517

The Statement of Financial Activities includes all gains and losses recognised in the period. All income and expenditure derives from continuing activities.

83