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2022-12-31-accounts

REGISTERED CHARITY NUMBER: 1189523

b

Report of the Trustees and

Financial Statements

for the Year Ended 31 December 2022

for JAC Trust

Sumer Audit Statutory Auditor Chartered Accountants County Gate County Way Trowbridge Wiltshire BA14 7FJ

JAC Trust

Contents of the Financial Statements for the Year Ended 31 December 2022

Page
Report of the Trustees 1 to 9
Report of the Independent Auditors 10 to 11
Statement of Financial Activities 12
Balance Sheet 13
Cash Flow Statement 14
Notes to the Financial Statements 15 to 26
Detailed Statement of Financial Activities 27 to 28

JAC Trust

Report of the Trustees for the Year Ended 31 December 2022

Charity Name: JAC Trust
Registration Number: 1189523
Governing Document: Constitution of a Charitable Incorporated Organisation dated 18/05/2020
Registered Address: Box 2, c/o C&J Clark International Ltd
40 High Street
Street
Somerset
BA16 0EQ
Trustees Odette Clark Campbell (Chair)
Dulma Clark
Aidan Pelly
Andrew Pym
William Pym
David Linehan (appointed 15.02.2022)
Principal Staff Daniela Lloyd-Williams (Director)
Bankers: CAF Bank
25 Kings Hill Avenue
Kings Hill
West Malling
Kent, ME19 4JQ
Auditors: Sumer Audit
Fortescue House
Court Street
Trowbridge, BA14 8FA
Fund Managers: Rathbone Greenbank Investments
10 Queen Street
Bristol
BS1 4NT

Page 1

JAC Trust

Report of the Trustees for the Year Ended 31 December 2022

The Trustees present their report and the audited financial statements of JAC Trust for the year ended 31 December 2022.

The financial statements comply with the governing document, the Charities Act 2011, and the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2016).

Structure, Governance and Management

Incorporation of JAC Trust

JAC Trust is a Charitable Incorporated Organisation (CIO) governed according to its Constitution dated 18 May 2020. It commenced operations on 1 July 2020 when it took over the main business and assets of the J.A. Clark Charitable Trust (charity registration number 1010520). The unincorporated charity was retained throughout 2021 to await completion of the first registration of land assets with the Land Registry and subsequent transfer of those assets to JAC Trust. The merger between J.A. Clark Charitable Trust and JAC Trust was completed on 3 May 2022.

Trustees

The Trustees who served in 2022 and up to the date of this report are as follows:

Odette Clark Campbell (Chair) Dulma Clark David Linehan (appointed 15.02.2022) Aidan Pelly Andrew Pym William Pym

Four of the Trustees are descendants of J. Anthony Clark, the settlor of the J.A. Clark Charitable Trust. All Trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 9 to the accounts.

Three of the Trustees were also Trustees of the J.A. Clark Charitable Trust, Odette Clark Campbell, Aidan Pelly, William Pym.

The Constitution provides for new Trustees to be appointed by the existing Trustees. In November 2021 the Trustees began the process to recruit a sixth trustee, by advertising the trustee vacancy on relevant on-line platforms. The process was completed on 15 February 2022 with the appointment of David Linehan. On appointment, Trustees are given an induction pack and are offered one or more briefing meetings with the Director and/or Chair to familiarise themselves with the charity, its governance, the context it operates in and their own roles and responsibilities.

Governance

Trustees are responsible for all decisions on the Trust’s policies and grants. The Trustees met six times in 2022, twice to review and approve grants and on four other occasions to discuss and progress governance, strategy and other matters.

The Trust has two committees which meet separately to the Board and report to it: Finance & Investment and Programme. All Trustees must serve on at least one of the committees. The Programme Committee reviews and assesses all grant applications to the Trust and makes funding recommendations to the Board. The Programme Committee draws on the expertise of an external adviser who joined the Committee in 2021, following an open, competitive recruitment process. The adviser gives their time voluntarily and receives no benefits from the charity.

Page 2

JAC Trust

Report of the Trustees for the Year Ended 31 December 2022

Management

The Trustees govern the Trust and control its strategic direction. They delegate the management of the Trust to the Trust Director, who is supervised by the Chair of the Board of Trustees and reports to the Trustees at their Board meetings.

The Trust’s remuneration policy is to balance the wish to attract and retain suitably qualified and experienced staff with careful management of the charity’s funds. The Director’s salary is reviewed annually, and any pay increase is linked to performance and approved by the Board. Pay is periodically benchmarked against grantmaking salaries of a similar size, most recently in 2022.

Charitable Objectives and Activities

Objectives and activities for the public benefit

JAC Trust exists and operates for the public benefit. Through its grant-making and social investments it works to improve the quality of life for people in need in the UK and overseas. The public benefit created by JAC Trust is demonstrated in this report through the listing of grants that we have made throughout the year.

The Trustees confirm that they have given due regard to the Charity Commission’s published guidance on public benefit when reviewing JAC Trust’s activities and in setting the funding strategy and grant-making policy. Trustees keep public benefit in mind when reviewing applications and making grant decisions. The Trustees ensure that all projects and organisations funded by JAC Trust have charitable objects or purposes as defined by the Charities Act 2011.

The objects of JAC Trust are to advance purposes which are exclusively charitable according to the law of England and Wales as the Trustees may in their absolute discretion think fit. JAC Trust carries out these objectives by making grants to organisations that carry out charitable activities in the UK and internationally, and through social investments.

Our objective: to increase the climate resilience of forcibly displaced people

In 2020 the Trustees adopted a ten year strategy that focuses on the climate change and forced displacement intersection. The overall aim of this is to help forcibly displaced people, their host communities and those at acute risk of displacement to respond to the challenges of climate change. The years 2020 and 2021 were designated a learning phase, during which the Trust funded a number of diverse initiatives at the climate change and forced displacement intersection in order to maximise learning. Informed by this learning, the Trustees refined the strategy at the beginning of 2022, adopting the following objective:

To increase the climate resilience of forcibly displaced people and their host communities while also promoting environmental protection/recovery.

In 2022 the number of forcibly displaced people reached an all-time high of 102 million (UNHCR, 2022). Armed conflicts, persecution and natural disasters are the main drivers behind this displacement. However, the climate crisis is a compounding factor as climate change erodes coping mechanisms and amplifies existing risks as well as creating new ones. With 90% of refugees and 70% of IDPs living in areas highly vulnerable to climate change, displaced people and their host communities are particularly exposed to the impacts of climate change. Rising temperatures are altering weather and rainfall patterns, threatening livelihoods that depend on natural resources and exacerbating food insecurity. This is compounded by environmental degradation due to population pressure, which in turn aggravates the impact of climate change. Competition over scarce natural resources can generate tensions between the host and displaced communities, ultimately leading to further displacement.

The need for funds is significant. Funding for climate resilience in general is very much the poor relation to mitigation; only one-quarter of climate change funding goes to adaptation. Moreover, what funds there are do not tend to focus on the needs of displaced communities or their hosts. According to the ICRC $0 of adaptation finance reaches conflict victims and refugees.

Page 3

JAC Trust

Report of the Trustees for the Year Ended 31 December 2022

Displaced people make up 1/8 of all people who do not have access to energy (Ashden Climate Solutions).

The last two years have shown us that numerous organisations are working with displaced people and their host communities to increase their climate resilience while also protecting or rehabilitating the natural environment. The work of these organisations is making a substantial difference to the people they work with, and by supporting such organisations we can increase the number of people transitioning from surviving to living.

Family Fund

JAC Trust is a family foundation. It supports the philanthropic giving of family members through a Family Fund that is capped at 10% of the grant-making budget. All Family Fund grants and donations are approved by the Trustees.

Achievements and Performance

Grant-making to increasing the climate resilience of forcibly displaced people

In 2022 we narrowed our focus to forcibly displaced people and their host communities, and switched to making larger, multi-year grants while retaining the existing open application system. Two calls for expressions of interest were issued on our website in the year. To reduce the number of ineligible applications the wording on our website was refined and a screening questionnaire was added.

A total of £381,206 was awarded in grants to 7 organisations. All grants were for between 18 and 36 months. In addition, the Environmental Funders Network received a donation of £1500.

Organisation Project Name Location £
Start
End
AMOR
Food for Life Phase 2 Guatemala £45,696
01/07/22
30/06/24
www.amorguatemala.org
Ashden Climate
Solutions
www.ashden.org		 Energising Refugee Livelihoods
Award		 Global £60,000 01/07/22 30/06/25
Increasing the resilience of
ForAfrika

refugees and host communities		 Uganda £52,000
01/07/22
28/02/24
www.forafrika.org
through climate-smart farming
Sengwer of Embobut
CBO
www.sengwer.org		 Promotion of conservation and
restoration of Embobut Forest
Ecosystem and Livelihoods		 Kenya £45,000 01/07/22 30/06/24
Improving Livelihood &

Environmental Protection Through
Hope for a Better Future

Provision of Durable Solar

https://www.h4bf-		 Cameroon £59,856
01/12/22
30/11/25
Powered Products for IDP and
**foundation.org **
Vulnerable Women in Donga

Mantung
International Refugee
Trust
https://www.irt.org.uk		 Step-up sustainable agriculture
project in Lira District		 Uganda £59,076 01/04/23 31/03/26
Papua Partners Integrated Development for

https://www.papuapartne
Internally Displaced Indigenous		 Indonesia £59,578
15/02/23		 14/02/25
**rs.org ** Communities in West Papua
Environmental Funders
Network		 Annual Membership £1500 01/07/22 30/06/23
Total £382,706

Page 4

JAC Trust

Report of the Trustees for the Year Ended 31 December 2022

Family Fund

A total of £47,500 was distributed.

Organisation £ Additional Information
DEC £3000 Ukraine emergencyappeal
Friends
of
Khwendo
Kor		 £1500 To support the Pakistan Flood Response
Single
Homeless
Project		 £1500 Addressing homelessness in London
Salvation
Army
in
Street		 £1500 Street Food Bank and Christmas Appeal
GapArt £15,000 The Great Green Ribbon in the occupied West
Bank
The
Felix
Project		 £15,000 Reducing food poverty in London through
rescuingsurplus food.
Muslim
Global Relief		 £10,000 To support humanitarian work in Afghanistan.
Total £47,500

Impact

As a grant-making charity JAC Trust achieves impact through funding the work of charities and other not-for profit organisations. All grant recipients are required to provide us with a final project report that details the outcomes of their work, both on a quantitative and qualitative basis.

The wide range of activities we support in diverse contexts means that we do not have standard impact indicators against which all projects are measured. Instead, each project is taken on an individual basis and outcomes are measured against the objectives agreed with the project. Where relevant, the Trustees also consider impacts on the capacity of the organisation itself.

13 grantees submitted final reports in 2022. According to these funding from JAC Trust contributed to the following achievements:

Social Investment

In 2022 the Trustees approved an updated Mission Responsible Investment Policy. To date the Trust has one social investment: a £80,000 loan to the Wyre Catchment Natural Flood Management Project approved in 2021. This pilot project tests whether private investment capital can be used to finance natural landscape restoration through the development of monetisable ecosystem services, i.e. such as natural flood management.

Page 5

JAC Trust

Report of the Trustees for the Year Ended 31 December 2022

Financial Review

Since 2020 the trustees have followed a total return strategy for the management of the Trust’s investment portfolio, we aim to achieve a balance between capital growth and income generation. The long-term objective is to maintain the long term real value of the investment fund while sustaining the level of grant distributions. Notwithstanding this, in 2021 the Trustees committed to maintaining a grants budget of £500,000 pa up until 2024.

The principal funding source of JAC Trust is from investment income of £167,807 (2021: £159,570). Total income was £167,957 (2021: £159,770).

Expenditure in 2022 was lower than the previous year at £546,433 (2021: £574,229), reflecting the move to multi-year grants. Grants for charitable purposes were £422,011 (2021: £458,581).

Reserves Policy

The funds are held as an expendable endowment. The Trustees do not operate a reserves policy, but manage the balance between short and long-term financial objectives through their grant making and investment policies.

Unrestricted reserves at 31 December 2022 were £107,180.

Investment Policy and Performance

The investments consist of a portfolio of externally managed quoted investments, land and property, and a shareholding in the private company C&J Clark Ltd (“CJC”) which formed the original endowment in 1970.

The Trustees take a responsible and ethical view to investing, with an emphasis on considering an array of environmental, social and governance issues. In 2019 the Trustees reviewed and updated the investment policy moving from negative screening to full integration of sustainability considerations. This reflects the Trustees’ commitment to using the Trust’s assets to support the transition to a post-Carbon economy.

The investment portfolio has been managed by Rathbone Greenbank since December 2019. Throughout 2022, global equity markets suffered significant falls in value reflecting the impact of the Russian invasion of Ukraine which triggered unprecedented increases in energy prices, which in turn drove a large acceleration of consumer inflation and accompanying rises in interest rates. Portfolios such as that of the Trust, with a strong sustainability focus, were disproportionally impacted given the absence of exposure to sectors such as fossil fuels as well as higher interest rates adversely impacting growth focused sectors. Thus, the Trust’s portfolio value fell by 17.7%, compared to the 2021 year-end value. While this was clearly a disappointing outcome, both the Trustees and investment manager remain optimistic that the long-term total return target of 4% plus inflation can be achieved, not least given the sustainability focus of the portfolio.

Fundraising Policy

The charity does not engage in any public fundraising activities. The Trust’s income is derived from its investment portfolio and other assets. On occasion individuals linked to the charity make a donation to it.

Page 6

JAC Trust

Report of the Trustees for the Year Ended 31 December 2022

Principal Risks and Uncertainties

The Trustees have examined the major risks to which JAC Trust is exposed. Risks are assessed on the basis of their likelihood and potential impact. The Trustees are satisfied that it has policies, procedures and systems in place to manage the risks the charity faces.

The Trustees considered the following to be the key risks faced by JAC Trust:

Funder Commitment on Climate Change

JAC Trust became a signatory to the Funder Commitment on Climate Change on its launch in November 2019. The Funder Commitment on Climate Change recognises that the impact of climate change is wide ranging, and a serious threat to funders achieving their charitable objectives. Funders therefore have a responsibility to ensure they are managing and distributing resources in a way that understands and responds to this emergency.

The Commitment provides funders with a framework for considering how their investments, operations and funding can both help tackle the causes and mitigate the effects of climate change. A key part of this framework is reporting on our progress towards these goals on an annual basis. Our progress towards these goals is outlined below.

Page 7

JAC Trust

Report of the Trustees

for the Year Ended 31 December 2022

Commitment Progress, 2022
1. Educate and
learn		 Staff and trustees met with, and visited, partner organisations
working to adapt to and combat climate change. This included a
talk to trustees from our partner Climate Outreach on the links
between climate change and migration, the Ashden Awards
evening and a visit to three partners in Uganda working on
regenerative agriculture, clean cooking and afforestation
programmes.
We continued our membership of the EFN, enabling us to access
online webinars, reports and in-person learning events.
2. Commit
resources		 90% of the Trust’s grant’s budget is dedicated to addressing climate
change. Climate justice is important to us and we therefore focus
our resources on communities on the frontline of climate change in
the global south., specifically refugees, IDPs and other forcibly
displaced people. In 2022 we switched to making multi-year grants,
new awards included:
-
Ashden Climate Solutions to fund the Energising Refugee
Livelihoods Award,
-
Sengwer of Embobut CBO to restore the Sengwer Forest
Ecosystem in Kenya, and
-
ForAfrika to support refugees and their host community in
Uganda to become food secure and more climate resilient
through
the
promotion
of
regenerative
agriculture,
agroforestry and clean cooking.
3. Integrate For the first time, all grants awarded through our Family Fund
addressed the climate crisis, either in the UK or overseas.
4. Steward our
investments for a
post-carbon
future		 We decarbonised our investment portfolio in 2020. In 2022 we
approved a mission related investment policy under which 5% of
our investment assets will be directed to environmental impact
investments. Our first investment pilots the use of nature based
flood management solutions in the Wyre Catchment.
5. Decarbonise our
operations		 In 2022 all internal meetings involving staff and trustees took place
virtually.
We also moved to more modern, energy efficient offices sharing
space with other organisations.

Future Plans

The Trustees will continue to fund initiatives that increase the climate resilience of forcibly displaced people and their host communities while also promoting environmental recovery/protection. Preference will be given to initiatives that foster a positive engagement between the host and displaced communities.

Given the extremely large number of Expressions of Interest received in response to the Spring 2023 call for applications (300 were eligible) the Trustees have decided to suspend the Summer 2023 call for applications and will draw on the spring pool of applicants instead.

The Trustees approved a Mission Responsible Investment in March 2023.

Audit

A resolution proposing that Sumer Audit (formerly Monahans) be re-appointed as the auditors of the charity for the financial year ending 31 December 2022 was passed at a meeting of the JAC Trust Board held on 8 June 2022.

Page 8

JAC Trust

Report of the Trustees for the Year Ended 31 December 2022

Statement of Trustees’ Responsibilities

The Trustees are responsible for preparing the Trustees’ report and the financial statements in accordance with applicable law and United Kingdom accounting standards (the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

Law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the charity’s financial activities during the year and of its financial position at the end of the year. In preparing those financial statements, the Trustees are required to:

  1. Select suitable accounting policies and apply them consistently;

  2. Make judgements and estimates that are reasonable and prudent;

  3. Observe methods and principles in the Charities SORP 2015 (FRS 102);

  4. State whether the financial statements comply with applicable accounting standards and the trust deed and rules, subject to any material departures disclosed and explained in the financial statements; 5. Prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continue its activities.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Signature and Declaration

20 June 2023

This report was approved by the Trustees on ………………….……….. and signed on their behalf by:

…………………………………………..

Odette Clark Campbell Chair of the Trustees

Page 9

Report of the Independent Auditors to the Trustees of JAC Trust

Opinion

We have audited the financial statements of JAC Trust (the 'charity') for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement 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 (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Page 10

Report of the Independent Auditors to the Trustees of JAC Trust

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Based on our understanding of the Trust and sector, we identified that the principal risks of non-compliance with laws and regulations related to compliance with charity legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements of the Trust. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Statement of Recommended Practice (FRS102). We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related potential lack of segregation of duties, bookkeeping errors and management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the audit engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A 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 Report of the Independent Auditors.

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Sumer Audit Statutory Auditor Chartered Accountants County Gate County Way Trowbridge Wiltshire BA14 7FJ

Date: ............................................. 05 July 2023

Page 11

JAC Trust

Statement of Financial Activities

for the Year Ended 31 December 2022

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Investment income
3
Other income
4
Total
EXPENDITURE ON
Raising funds
5
Charitable activities
6
Family Fund
Climate Change and Forced Displacement
Total
Net gains/(losses) on investments
NET INCOME/(EXPENDITURE)
Transfers between funds
20
Other recognised gains/(losses)
Gains on revaluation of fixed assets
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
150
167,807
-
167,957
8,394
75,478
168,888
252,760
-
(84,803)
60,656
-
(24,147)
131,327
107,180
Endowment
funds
£
-
-
-
-
56,075
-
237,598
293,673
(4,003)
(297,676)
(60,656)
29,429
(328,903)
11,603,816
11,274,913		 2022

Total
funds
£
150
167,807
-
167,957
64,469
75,478
406,486
546,433
(4,003)
(382,479)
-
29,429
(353,050)
11,735,143
11,382,093		 2021
Total
funds
£
-
159,570
200
159,770
68,651
26,710
478,868
574,229
1,899,306
1,484,847
-
32,900
1,517,747
10,217,396
11,735,143

The notes form part of these financial statements

Page 12

JAC Trust

Balance Sheet 31 December 2022

Notes
FIXED ASSETS
Tangible assets
13
Investments
Investments
14
Investment property
15
Social investments
16
CURRENT ASSETS
Debtors
17
Cash at bank
CREDITORS
Amounts falling due within one year
18
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS
Amounts falling due after more than one year
19
NET ASSETS
FUNDS
20
Unrestricted funds
Endowment funds:
Expendable endowment
Tangible fixed asset revaluation reserve
TOTAL FUNDS		 Unrestricted
funds
£
1,237
-
-
24,000
25,237
4,070
101,725
105,795
(23,852)
81,943
107,180
-
107,180
Endowment
funds
£
278,829
9,856,219
1,377,463
-
11,512,511
-
-
-
(140,217)
(140,217)
11,372,294
(97,381)
11,274,913		 2022

Total
funds
£
280,066
9,856,219
1,377,463
24,000
11,537,748
4,070
101,725
105,795
(164,069)
(58,274)
11,479,474
(97,381)
11,382,093
107,180
11,190,636
84,277
11,274,913
11,382,093		 2021
Total
funds
£
249,400
10,053,676
1,300,740
-
11,603,816
544
183,902
184,446
(53,119)
131,327
11,735,143
-
11,735,143
131,327
11,548,968
54,848
11,603,816
11,735,143

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. 20 June 2023 and were signed on its behalf by:

............................................. O Clark Campbell - Trustee

The notes form part of these financial statements

Page 13

JAC Trust

Cash Flow Statement
for the Year Ended 31 December 2022
2022
Notes
£
Cash flows from operating activities
Cash generated from operations
23
(47,393)
Net cash used in operating activities
(47,393)
Cash flows from investing activities
Purchase of tangible fixed assets
(1,649)
Purchase of fixed asset investments
(1,878,340)
Purchase of social investments
(24,000)
Sale of fixed asset investments
1,995,071
Movement in cash held for investment
-
Interest received
964
Dividends received
142,651
Property income
24,192
Net cash provided by investing activities
258,889
Cash flows from financing activities
Expenditure attributable to endowment
(293,673)
Net cash used in financing activities
(293,673)
Change in cash and cash equivalents in
the reporting period
(82,177)
Cash and cash equivalents at the
beginning of the reporting period
183,902
Cash and cash equivalents at the end of
the reporting period
101,725		 2021
£
(442,609)
(442,609)
-
(555,855)
-
1,038,224
(38,718)
11
131,868
27,691
603,221
(55,301)
(55,301)
105,311
78,591
183,902

The notes form part of these financial statements

Page 14

JAC Trust

Notes to the Financial Statements for the Year Ended 31 December 2022

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view'. This departure has involved following the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The trustees consider that there are no material uncertainties about the Trust's ability to continue as a going concern. The most significant areas of adjustment and key assumptions that affect items in the accounts are to do with estimating the liability from multi-year grant commitments. With respect to the next year, the most significant areas of uncertainty that affect the carry value of assets held by the Trust are the level of investment return and the performance of investment markets.

The Trust constitutes a public benefit entity as defined by FRS102.

Judgements and key sources of estimation uncertainty

The preparation of accounts in conformity with FRS102 requires the trustees to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based upon historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values and liabilities that are not readily available from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods. Certain critical accounting judgements in applying the charity's accounting policies are described below:

The trustees have considered the valuation of fixed asset investments and have concluded that no impairments are necessary, however there existed a material uncertainty relating to the valuation of the C&J Clark Limited shares, so the financial statements may change materially in the next period.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Investment income, consisting of interest and dividends, is accounted for on a receivable basis.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Irrecoverable VAT is charged as an expense against the activity for which the expenditure arose.

Grants made are included in the accounts when they are authorised by the trustees.

Costs of generating funds are those incurred in managing the investments. Other costs are governance and support costs.

The allocation of support costs to governance is set out in note 8.

Page 15

continued...

JAC Trust

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

1. ACCOUNTING POLICIES - continued

Expenditure

Governance and support costs are then allocated between the programme funds based on the number of recipients of grants for each programme fund.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Tangible fixed assets

Land and buildings are included in the balance sheet at their fair value. Revaluations of the properties are taken to a revaluation reserve within the endowment funds of the charity as detailed in note 20. The trustees will obtain a formal valuation of the properties every 5 years and re-estimate the market value each year based on the Land Registry House Price Index for the South West in the years between formal valuations. The investment properties were last formally valued at 25 October 2016, which was taken as a best approximation to the valuation on 31 December 2016. Capital expenditure incurred on the properties is also added to the book value in the period between valuations. Further detail is provided in note 13.

Fixed asset investments

Listed investments and properties are included in the balance sheet at fair value (their market value).

The realised and unrealised gains on investments are reflected in the statement of financial activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening market value (purchase date if later). Unrealised gains and losses are calculated as the difference between the market value as the period end and opening market value (or purchase date if later). Realised and unrealised gains are not separated in the statement of financial activities.

Programme-related investments

Programme-related investments are included in the balance sheet at their fair value (the value of the loan outstanding).

Debtors and creditors

Debtors and creditors are measured as invoiced price, less any applicable discounts.

Short term liquid investments and cash

Cash at bank is held to meet short-term commitments and they fall due rather than for investment purposes and included all cash equivalents held in the form of short-term highly liquid investments. Cash equivalents are shortterm, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of change in value.

Taxation

The charity is exempt from tax on its charitable activities.

Fund accounting

Funds consist of a general unrestricted fund and an expendable endowment fund. Grants and support costs are paid out of the general unrestricted funds. Investment management fees are charged to the expendable endowment fund. Revaluations in tangible fixed assets are disclosed within endowments in a separate tangible fixed asset revaluation reserve,

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits

The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

The costs of the defined contribution scheme are included within support and governance costs and charged to the unrestricted funds of the charity using the methodology set out in note 8.

The trust has no liability beyond making its contributions and paying the deductions for the employee's contributions.

Page 16

continued...

JAC Trust

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

1. ACCOUNTING POLICIES - continued

Financial instruments

The charity has elected to apply the provisions of Section 11 "Basic Financial Instruments" and Section 12 "Other Financial Instruments Issues" of FRS102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the accounts, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial instruments

Basic financial assets, which include debtors and cash bank balances, are initially measured at transaction price including transaction costs and subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for the goods or service that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity's contractual obligations expire or are discharged or cancelled.

2. DONATIONS AND LEGACIES

Donations
3.
INVESTMENT INCOME
Property income
Listed investment portfolio
Deposit account interest
4.
OTHER INCOME
Compensation		 2022
£
150
2022
£
24,192
142,651
964
167,807
2022
£
-		 2021
£
-
2021
£
27,691
131,868
11
159,570
2021
£
200

Page 17

continued...

JAC Trust

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

5. RAISING FUNDS

Raising donations and legacies

Rental expenses
Investment management costs
Exchange rate losses
Investment management
Aggregate amounts
6.
CHARITABLE ACTIVITIES COSTS
Family Fund
Climate Change and Forced
Displacement
7.
GRANTS PAYABLE
Family Fund
Climate Change and Forced Displacement		 Grant
funding of
activities
(see note
7)
£
47,500
374,511
422,011		 2022
£
8,394
2022
£
9,710
46,365
56,075
64,469
Support
costs (see
note 8)
£
27,978
31,975
59,953
2022
£
47,500
374,511
422,011		 2021
£
13,350
2021
£
-
55,301
55,301
68,651
Totals
£
75,478
406,486		 2021
£
13,350
2021
£
-
55,301
55,301
68,651
481,964
2021
£
26,710
431,871
458,581

Page 18

continued...

JAC Trust

Notes to the Financial Statements - continued

for the Year Ended 31 December 2022

7. GRANTS PAYABLE - continued

The total grants paid to institutions during the year was as follows:

Somerset Community Fund
ARSDO
BUARDEFO
CHASE Africa
Food for the Hungry
PARAN
SOORA
Community Needs Initiative
Medicine Africa
Off Grid Gas and Fertilisers Ltd
People's Planet Project
Pragya
REDO
Cameroon Gender and Environmental Watch
Vita
Working Chance
Afghanistan & Central Asian Association
The Felix Project
Ashden Climate Solutions
AMOR
ForAfrika
Sengwer of Embobut CBO
Hope for a Better Future
Papua Partners
International Refugee Trust
GapArt
Muslim Global Relief
DEC
Grants to institutions under £3,000
Reconciliation of grants
Grants committed for the year
Grants paid during the year
Commitments at 1 January 2021
Commitments at 31 December 2021
Commitments at 31 December 2021 are payable as follows:
Within one year
After more than one year		 2022
£
-
(8,195)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15,000
60,000
45,696
52,000
45,000
59,856
59,578
59,076
15,000
10,000
3,000
6,000
422,011		 2021
£
(4,790)
59,924
28,000
30,000
26,011
29,713
28,569
29,243
27,885
30,000
27,582
28,558
30,000
26,386
30,000
1,500
15,000
15,000
-
-
-
-
-
-
-
-
-
-
-
458,581
£
422,011
(210,912)
26,499
237,598
140,217
97,381
237,598

Page 19

continued...

JAC Trust

Notes to the Financial Statements - continued

for the Year Ended 31 December 2022

8. SUPPORT COSTS

Family Fund
Climate Change and Forced Displacement		 Governance
Other
costs
£
£
22,087
5,891
25,243
6,732
47,330
12,623		 Totals
£
27,978
31,975
59,953

The allocation of governance and support costs between the programme funds of the trust is proportional, based on the number of recipients of grants for each primary objective. This apportionment will be recalculated each year. The breakdown of support costs and how these were allocated between governance and other support costs is shown in the table below:

Cost type
Staff costs
Administration
Meetings, travel and office
Website and grant management
AFC membership and seminars
Accountancy
Audit
Legal
Insurance
Depreciation
Bank charges and FX adjustments		 Other
£
34,170
9,014
978
1,248
1,283
-
-
-
225
412
-
47,330		 Governance
£
-
2,254
3,913
-
-
420
6,905
(1,103)
-
-
234
12,623		 2022
£
34,170
11,268
4,891
1,248
1,283
420
6,905

(1,103)
225
412
234
59,953		 2021
£
26,551
11,054
173
477
3,136
1,268
4,032

1,252
-
-
(946)
46,997

Allocation of administration is based on an estimate that 20% of such expenses relate to governance activities.

Allocation of a meetings, travel and office is based on an estimate that 80% of such expenses relate to governance activities.

9. AUDITORS' REMUNERATION

AUDITORS' REMUNERATION
2022 2021
£ £
Fees payable to the charity's auditors for the audit of the charity's financial
statements 6,905 4,032

10. TRUSTEES' REMUNERATION AND BENEFITS

The trustees all give freely their time and expertise without any form of remuneration or other benefits in cash or kind (2021: £nil).

No monetary value has been assigned to this donated time in the accounts in line with the Charities SORP (FRS102).

Page 20

continued...

JAC Trust

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

10. TRUSTEES' REMUNERATION AND BENEFITS - continued

Trustees' expenses

One trustee was reimbursed for travel costs incurred on trust business. These expenses totalled £1,934 (2021: £nil).

11. STAFF COSTS

Wages and salaries
Other pension costs
The average monthly number of employees during the year was as follows:
Charitable activities
No employees received emoluments in excess of £60,000.
12.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Investment income
159,570
Other income
200
Total
159,770
EXPENDITURE ON
Raising funds
13,350
Charitable activities
Family Fund
26,710
Climate Change and Forced Displacement
478,868
Total
518,928
Net gains on investments
-
NET INCOME/(EXPENDITURE)
(359,158)
Transfers between funds
464,458
Other recognised gains/(losses)
Gains on revaluation of fixed assets
-
Net movement in funds
105,300
RECONCILIATION OF FUNDS
Total funds brought forward
26,027
TOTAL FUNDS CARRIED FORWARD
131,327

Page 21

continued...

JAC Trust

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

13. TANGIBLE FIXED ASSETS

TANGIBLE FIXED ASSETS
COST OR VALUATION
At 1 January 2022
Additions
Revaluations
At 31 December 2022
DEPRECIATION
Charge for year
NET BOOK VALUE
At 31 December 2022
At 31 December 2021		 Freehold
property
£
249,400
-
29,429
278,829
-
278,829
249,400		 Computer
equipment
£
-
1,649
-
1,649
412
1,237
-		 Totals
£
249,400
1,649
29,429
280,478
412
280,066
249,400

On 27 November 2018, the JA Clark 1960 Settlement transferred ownership of 34 Pine Close BA16 0RS to the charity in order for it to be held for charitable purposes. It is currently being used as accommodation for a refugee family.

The property was professionally valued in November 2018 before the transfer, and has been uplifted in each year since using the Land Registry House Price Index.

14. FIXED ASSET INVESTMENTS

MARKET VALUE
At 1 January 2022
Additions
Disposals
Revaluations
At 31 December 2022
NET BOOK VALUE
At 31 December 2022
At 31 December 2021
Listed shares and securities
Unlisted shares
Cash held as part of the investment portfolio		 Investments
£
9,318,826
1,645,347
(1,974,307)
(1,809,726)
7,180,140
7,180,140
9,318,826		 Unlisted

investments
£
611,800
-
(20,764)
1,729,000
2,320,036
2,320,036
611,800		 Cash and
settlements

pending
£
123,050
232,993
-
-
356,043
356,043
123,050		 Totals
£
10,053,676
1,878,340
(1,995,071)
(80,726)
9,856,219
9,856,219
10,053,676
£
7,180,140
2,320,036
356,043
9,856,219

The change in market value during the year, as shown in the revaluations above, comprises all the increases and decreases in the market value of investments held at any time during the year including profits and losses realised on sales of investments during the year. The change in market value is represented by a £1,809,726 decrease in the value of listed investments and a £1,729,000 increase in value of unlisted investments.

Page 22

continued...

JAC Trust

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

14. FIXED ASSET INVESTMENTS - continued

All investments are carried at their fair value. Investments in listed and fixed interest securities are all traded on quoted public markets. Holdings in common investment funds, unit trusts and open-ended investments companies are at the bid price. The basis of fair value for quoted investments is equivalent to the market value, using the bid price. Asset sales and purchases are recognised at the date of trade at cost.

The current holding of C & J Clarke Ltd ordinary share is as follows:

C & J Clark Ltd £1 ordinary shares

Valuation at 1 January 2022
Disposals
Revaluation
Valuation at 31 December 2022		 £
611,800
(20,764)
1,729,000
2,320,036

At 31 December 2022 the trustees held 1,318,202 £1 ordinary shares. These shares have been valued at £1.76 per share based on a valuation of the issued ordinary shares by BDO on 1 July 2022. The trustees have accepted this valuation but are aware that the financial statements for C&J Clark Limited, for the period ended 29 January 2022, include a material uncertainty related to going concern. Therefore, an estimation uncertainly exists.

15.

INVESTMENT PROPERTY

FAIR VALUE
At 1 January 2022
Revaluation
At 31 December 2022
NET BOOK VALUE
At 31 December 2022
At 31 December 2021		 £
1,300,740
76,723
1,377,463
1,377,463
1,300,740

The freehold land and buildings were professionally valued at £1,040,000 as at 31 December 2016. The trustees have revalued the land and buildings represented by the cottage based on an adjusted valuation by Savills Chartered Surveyors in March 2022. The land and buildings brought forward represented by the farmland was revalued using the Cooper Tanner valuations. This year the Knight Frank Farmland index was used for the revaluation showing an increase the value by 13% (2021: 10%).

Page 23

continued...

JAC Trust

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

16. SOCIAL INVESTMENTS

MARKET VALUE
Additions
NET BOOK VALUE
At 31 December 2022
At 31 December 2021		 Mixed
motive
investments
£
24,000
24,000
-

This represents a loan to the Wyre Catchment Natural Flood Management Project. The loan facility is £80,000 and as at 31 December 2022 a loan of £24,000 had been advanced. The loan is repayable by 6 equal instalments on 30 November 2025 to 30 November 2030. Interest is charged on the loan at between 5 and 6% p.a.

17. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Other debtors
Prepayments and accrued income
18.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Grants payable
Accruals and deferred income
19.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Grants payable
20.
MOVEMENT IN FUNDS
Net
movement
At 1.1.22
in funds
£
£
Unrestricted funds
General fund
131,327
(84,803)
Endowment funds
Expendable endowment
11,548,968
(297,676)
Tangible fixed asset revaluation reserve
54,848
29,429
11,603,816
(268,247)
TOTAL FUNDS
11,735,143
(353,050)		 2022
£
3,408
662
4,070
2022
£
140,217
23,852
164,069
2022
£
97,381
Transfers
between
funds
£
60,656
(60,656)
-
(60,656)
-		 2021
£
-
544
544
2021
£
26,499
26,620
53,119
2021
£
-
At
31.12.22
£
107,180
11,190,636
84,277		 2021
£
-
544
544
11,274,913
11,382,093

Page 24

continued...

JAC Trust

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

20. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Endowment funds
Expendable endowment
Tangible fixed asset revaluation reserve
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General fund
Endowment funds
Expendable endowment
Tangible fixed asset revaluation reserve
TOTAL FUNDS		 Incoming
resources
£
167,957
-
-
-
167,957
At 1.1.21
£
26,027
10,169,421
21,948
10,191,369
10,217,396
Resources

expended
£
(252,760)
(293,673)
-
(293,673)
(546,433)
Net
movement

in funds
£
(359,158)
1,844,005
32,900
1,876,905
1,517,747

Gains and
losses
£
-
(4,003)
29,429
25,426
25,426
Transfers
between
funds
£
464,458
(464,458)
-
(464,458)
-
Movement
in funds
£
(84,803)
(297,676)
29,429
(268,247)
(353,050)
At
31.12.21
£
131,327
11,548,968
54,848
11,603,816
11,735,143

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Endowment funds
Expendable endowment
Tangible fixed asset revaluation reserve
TOTAL FUNDS		 Incoming
resources
£
159,770
-
-
-
159,770		 Resources
expended
£
(518,928)
(55,301)
-
(55,301)
(574,229)		 Gains and
losses
£
-
1,899,306
32,900
1,932,206
1,932,206		 Movement
in funds
£
(359,158)
1,844,005
32,900
1,876,905
1,517,747

The expendable endowment funds represent the original capital of the Trust, the gift of the property from the JA Clark 1960 settlement, realised and unrealised gains and losses on investments, the related investment management fees incurred and any charitable expenditure since the fund was set up.

The fixed asset revaluation reserve represents the unrealised gains on the gifted property from the JA Clark 1960 settlement.

General unrestricted funds are available to be spent for any purpose of the Trust.

Transfers between funds represents endowment investment transactions together with the grants liability underwritten from endowment funds.

Page 25

continued...

JAC Trust

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

21. RELATED PARTY DISCLOSURES

Note 13 shows details of a property gifted to the Trust by the JA Clark 1960 Settlement.

22. ULTIMATE CONTROLLING PARTY

The charity is controlled jointly by the trustees.

23. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net (expenditure)/income for the reporting period (as per the
Statement of Financial Activities)
Adjustments for:
Depreciation charges
Losses/(gain) on investments
Interest received
Dividends received
Expenditure attributable to endowment
Property income
Gain on revaluation of fixed assets
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash used in operations		 2022
2021
£
£
(382,479)
1,484,847
412
-
4,003
(1,899,306)
(964)
(11)
(142,651)
(131,868)
293,673
55,301
(24,192)
(27,691)
-
77,435
(3,526)
294
208,331
(1,610)
(47,393)
(442,609)

24. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.22 Cash flow At 31.12.22
£ £ £
Net cash
Cash at bank 183,902 (82,177) 101,725
183,902 (82,177) 101,725
Total 183,902 (82,177) 101,725

25. FAIR VALUE OF ASSETS AND LIABILITIES

Exposure to credit risk

The main debtor of the charity is Rathbone Investment Management who hold investment income at the year end. The risk of loss arising from the investment manager failing to pay over the income generated by the investment portfolio is considered low as the investment manager is a regulated institution and the income is paid over regularly to the charity's bank account.

Exposure to market risk

Investments represent the majority of the charity's net assets. The risk of a financial loss arising from listed investments due to changes in the market is mitigated by the active management of the investment portfolio by a professional investment manager and the diversification of the investment portfolio based on an investment policy approved by the trustees.

The unlisted investment in C&J Clark Limited was revalued based on a valuation of the issued ordinary shares by BDO on 1 July 2022.

Changes in fair value of debtors, creditors and investments due to credit risk

There have been no changes in the fair values of basic financial instruments (debtors, creditors and investments) attributable to changes in credit risk.

Page 26

JAC Trust

Detailed Statement of Financial Activities for the Year Ended 31 December 2022

INCOME AND ENDOWMENTS
Donations and legacies
Donations
Investment income
Property income
Listed investment portfolio
Deposit account interest
Other income
Compensation
Total incoming resources
EXPENDITURE
Raising donations and legacies
Rental expenses
Investment management costs
Exchange rate losses
Investment management
Charitable activities
Grants to institutions
Support costs
Other
Wages
Pensions
Administration
Meetings, travel and office
ACF membership & seminars
Insurance
Website & grant management
Computer equipment depreciation
Governance costs
Auditors' remuneration
Administration
Meetings, travel and office
Legal
Accountancy
Bank charges
Total resources expended
Net expenditure before gains and losses		 2022
£
150
24,192
142,651
964
167,807
-
167,957
8,394
9,710
46,365
56,075
422,011
32,886
1,284
9,014
978
1,283
225
1,248
412
47,330
6,905
2,254
3,913
(1,103)
420
234
12,623
546,433
(378,476)		 2021
£
-
27,691
131,868
11
159,570
200
159,770
13,350
-
55,301
55,301
458,581
25,205
1,346
10,758
173
3,136
-
477
-
41,095
4,032
-
-
1,252
1,564
(946)
5,902
574,229
(414,459)

This page does not form part of the statutory financial statements

Page 27

JAC Trust

Detailed Statement of Financial Activities for the Year Ended 31 December 2022

Realised recognised gains and losses
Realised gains/(losses) on fixed asset
investments
Realised gains/(losses) on investment property
Net (expenditure)/income		 2022
2021
£
£
(80,726)
1,763,566
76,723
135,740
(382,479)
1,484,847

This page does not form part of the statutory financial statements

Page 28