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2023-12-31-accounts

REGISTERED CHARITY NUMBER: 1189523

Report of the Trustees and

Financial Statements

for the Year Ended 31 December 2023

for

JAC Trust

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

JAC Trust Report of the Trustees for the Year Ended 31 December 2023

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
Principal Staff Daniela Lloyd-Williams (Director)
Bankers: CAF Bank
25 Kings Hill Avenue
Kings Hill
West Malling
Kent, ME19 4JQ
Auditors: MHA Monahans
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 2023

The Trustees present their report and the audited financial statements of JAC Trust for the year ended 31 December 2023.

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 merger between J.A. Clark Charitable Trust and JAC Trust was completed on 3 May 2022.

Trustees

The Trustees who served in 2023 and up to the date of this report are as follows:

Dulma Clark Odette Clark Campbell (Chair until 27.01.2023) David Linehan Aidan Pelly Andrew Pym William Pym (Chair as of 27.01.2023)

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.

The Constitution provides for new Trustees to be appointed by the existing Trustees. On appointment, Trustees are given an induction pack and offered one or more briefing meetings with the Director and Chair to familiarise themselves with the charity, its governance, the context it operates in and their own roles and responsibilities. All Trustees are encouraged to attend relevant training events provided by the Association of Charitable Foundations.

Governance

The Trustees govern the Trust and control its strategic direction. The Trustees met five times in 2023, twice to review and approve grants and on three other occasions to discuss and progress governance, strategy, investments, 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.

Management

The Trustees have delegated 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. All policies, grants and social investments are approved by the Trustees.

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 grant-makers of a similar size, most recently in 2022.

Page 2

JAC Trust Report of the Trustees for the Year Ended 31 December 2023

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 and their host communities while also promoting environmental protection/recovery .

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 and the communities that host them to respond to the challenges of climate change.

Forced displacement, typically the result of life-saving decisions made under duress, tends to result in a broad spectrum of complex, interconnected impacts such as: reduced access to shelter, safe food, water and health care; exposure to unsanitary conditions and environmental hazards, and conflict over natural resources. All of which increase vulnerability to climate change impacts. In addition, 90% of refugees and 70% of IDPs live in areas highly vulnerable to climate change. It is therefore not surprising that people displaced internally or across borders are among the groups most exposed to climate change-related impacts.

Today, more people than ever before have been forced to leave their homes with 114 million people displaced worldwide in 2023 (UNHCR, 2023). That is 1 in 73 people, a decade ago it was 1 in 124 people. Most people forced to flee their homes never cross an international border and are therefore internally displaced.

Funding is not keeping pace with the rise in need. Globally, humanitarian response plans were only 40% funded in 2023. In practice, this means that food rations are being drastically cut in several forgotten crises including the Horn of Africa. At the same time, funding for climate resilience is not really reaching displaced communities. For example, according to the ICRC (2022) $0 of adaptation finance reaches conflict victims.

JAC Trust achieves its objectives by funding multi-year initiatives that strengthen livelihoods, reduce vulnerabilities and at the same time contribute to environmental protection or restoration.

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

JAC Trust uses a two-stage application process: Expressions of Interest are submitted in response to a call for applications, with a maximum of ten applications taken forward to full proposal stage. Typically, the Trust has two calls for applications a year.

Page 3

JAC Trust Report of the Trustees for the Year Ended 31 December 2023

The Spring 2023 call for applications generated 558 applications, of which 300 were eligible. Given the extremely large number of strong applications, the Trustees decided to suspend the second call, drawing on the spring pool of applications for the autumn funds round. The majority of applicants were from the Global South.

Eight organisations were awarded grants, two or which were previous grantees. In addition, thanks to a new collaboration with The Orp Foundation the International Refugee Trust (2022 grantee) received a top-up grant of £12,500. In total £509,188 was awarded in grants.

Organisation Amount Project Name Location Start End
Improving human and
CHASE Africa environmental health and
www.chaseafrica.or strengthening integration
£90,000 Uganda 01/07/23 30/06/26
g.uk between refugee and host
communities around Bidi Bidi
refugee settlement
Re-Alliance
www.re-
alliance.org		 £60,000 Developing and piloting
regenerative approaches to
camps and settlements in the
light of increased climate and
conflict displacement		 Global 01/05/23 30/04/26
Relief to Natural Environment Protection
Development through Climate Smart
£59,200 Tanzania 01/07/23 30/06/25
Society (REDESO) Solutions in Refugee Camps and
www.redeso.org Host Communities in Kigoma
Shared Action
Africa
www.sharedact.org		 £60,000 Building the Resilience of
Women headed households to
Climate Change while
Promoting Sustainable Land Use
and Management in Nakivale
Refugee Settlement
Uganda		 02/01/23 31/12/24
Building Climate Smart
CAMGEW Entrepreneurs in Anglophone
www.camgew.org £59,847 Crisis affected people and their Cameroon 02/01/24 02/07/25
host communities of Magba and
Bankim in Cameroon.
FUNDEPAZ
www.fundepaz.org		 £57,874 Empowerment on Renewable
Energies as Restorative
Peacebuilding Strategies		 Colombia 15/01/24 18/07/25
SHED Enhancing resilience of
www.shedbd.org £60,000 Rohingya refugee and host Bangladesh
02/01/24		 31/12/25
communities in Cox’s Bazar
YICE
www.yiceug.org		 £48,267 Re-Farm Project: Regenerative
Farming for Refugee Farmers		 Uganda 02/01/24 31/12/25
International
Refugee Trust £12,500 Step-up sustainable agriculture Uganda 01/01/24 31/03/26
i Li Dii
www.irt.org.uk project n ra strct (top-up)
Environmental
Funders Network		 £1500 Annual membership 01/07/23 30/06/24
TOTAL £509,188

Page 4

JAC Trust Report of the Trustees for the Year Ended 31 December 2023

Family Fund

A total of £46,500 was distributed.

Organisation £ Description
Afghanaid 15,000 Inclusive Livelihoods Recovery and Strengthened Resilience of
Rural Afghan Women
Lewa Wildlife Conservancy 1,500 Nature conservation and community outreach
Entheogenesis Australis 1,500 Australian botanical and environmental charity
Amasosha Art
Advancement		 1,500 Supporting local artists from disadvantaged backgrounds in
South Africa
Overleigh Charitable Trust 1,500 Ash dieback tree works at community land charity
Surfers Not Street
Children		 1,500 Engaging street children in surfing to improve life opportunities
in South Africa
Larger than Life Fund 1,500 3D printing replacement joints/limbs for sufferers of Sarcoma
makingthe technologyand treatment available to all.
Anno’s Africa 1,500 Arts programme for underprivileged children in sub-Saharan
Africa
Animals Asia Foundation 1,500 Rescue of Bile Bears
EASE 1,500 London based charity working with asylum seekers
Street Theatre Workshop 3,000 Emergency funds for Palestine community project
MSF 15,000 Emergency funding for humanitarian work in Gaza
Total £46,500

In addition, the Alfred Gillet Trust was awarded a £200,000 legacy grant towards the capital costs of creating the Shoemakers Museum in Street.

Impact

As a grant-making charity JAC Trust achieves impact through funding the work of other not-for profit organisations.

All grant recipients are required to provide us with a final report that details the outcomes of their work, both on a quantitative and qualitative basis. In 2023 six grantees submitted final reports. According to these, funding from JAC Trust contributed to the following achievements:

Page 5

JAC Trust Report of the Trustees for the Year Ended 31 December 2023

Social Investment

Social investments are a means for the Trust to increase its overall environmental/ social impact by making use of its assets. All social investments must be aligned with the overall objectives of the Trust and are therefore expected to:

  1. address the causes of the climate crisis, or

  2. increase climate resilience, or

  3. support refugees and other forcibly displaced people.

In 2023, the trustees approved an investment of £100,000 in the Conduit EIS Impact Fund (see Appendix II for more details). This takes the total commitment to social investment to £180,000.

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 to and including 2024.

In 2023 JAC Trust sold a residential property and some 50 acres of agricultural land, the net proceeds from the sale were £2,161,845.

The principal funding source of JAC Trust is from investment income of £191,721 (2022: £167,807). Total income excluding investment gains was £204,221 (2022: £167,957).

Expenditure in 2023 was higher than the previous year at £882,468 (2022: £546,433). Grants for charitable purposes were £755,688 (2022: £422,011).

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 2023 were £208,874.

Investment Policy and Performance

The investments consist of a portfolio of externally managed listed 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 adopt a responsible and ethical view to investing, with an emphasis on considering an array of environmental, social and governance issues. In 2023 the Trustees reviewed and updated the investment policy to ensure it more clearly and explicitly aligns with the Trust’s investment objectives and priorities, including a net zero aligned investment portfolio by 2040 target.

The investment portfolio has been managed by Rathbone Greenbank since December 2019. 2023 was another relatively challenging year for our growth oriented and sustainability focused portfolio, not least due to the impact of rising interest rates. However, listed equity markets rallied in the final quarter of the year, which led to the portfolio delivering a net annual return of 5.4%, though this was below the portfolio benchmarks and the long-term returns target of CPI +4%.

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 2023

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:

• Investment risk : Given the volatility in global equity markets and high-inflation, there is a real risk that the Trust’s capital is eroded over time as capital growth fails to keep pace with inflation in the long-term. We mitigate this risk by investing through an investment manager and maintaining a diverse investment portfolio. Moreover, the Trustees seeks to spread investment risk where possible. Trustees are aware of the investment risk posed by the large holding in the private company C & J Clark Limited. As it is a private company the marketability of shares is strictly limited providing only limited opportunity to disinvest. We continue to take any opportunities to diversify.

• Partner delivery risk : JAC Trust funds the work of independent not-for-profit organisations. There is a risk that agreed objectives are not achieved due to; the inherent risk of failure in an innovative project, poor project design, a lack of financial and/or human capacity to carry out the work, natural hazards and conflict impeding project implementation, the sudden closure of a charity. The Trustees believe that local organisations are often best placed to respond to problems and are therefore willing to fund non-UK registered charities. The Trustees are willing to fund high-risk projects in certain situations where success could lead to truly transformative results and risks are clearly acknowledged and described. In general, risks are mitigated through due diligence and monitoring procedures.

• Fraud as a result of cyber-attack . The Trust is aware that foundations, along with solicitors, are the targets of cyber attacks where attackers impersonate a grantee. This risk of inadvertently transferring funds to the wrong account is mitigated through following internal protocols for checking bank information .

Funder Commitment on Climate Change

JAC Trust became a signatory to the Funder Commitment on Climate Change on it’s 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.

Page 7

JAC Trust Report of the Trustees for the Year Ended 31 December 2023

Commitment Progress 2023
1.
Educate and
learn		 Having funded in the climate resilience space since 2020 the Board and Staff
have a good basic knowledge of climate change. We continue to learn from our
peers, e.g. attending EFN events, and from our partners who all work on climate
resilience in the Global South. In the last year we have visited one partner in
Kenya to learn more about the opportunities for taking climate action locally and
the challenges involved, e.g. in restoring degraded forests. We have also learnt
more about re-wilding in the UK through interactions with several organisations,
including Wildlife Trusts, the Environment Bank and Somerset Wildlands.
2.
Commit
resources		 Since 2020, 90% of the Trust’s grants budget is dedicated to taking climate action
in the Global South. Climate justice is important to us and we therefore focus our
resources on communities on the frontline of climate change, specifically
refugees, IDPs and the communities that host them. In 2023, over half of the
grants we awarded will address change related food insecurity through the
promotion of regenerative or climate smart agricultural techniques.
3.
Integrate		 In 2023 JAC Trust integrated taking climate action into our property
management – investing in the energy efficiency of the rental property we own.
Trustees also began exploring opportunities to rewild the Trusts land.
4.
Steward our
investments for a
post-carbon future		 We decarbonised our investment portfolio in 2020. In 2023 Trustees updated our
investment policy to include a net zero by 2040 target and we are now working
with our investment managers to implement this. The Trust has also made an
impact investment in the climate space and trustees plan to increase the share
of assets invested in environmental impact investments.
5.
Decarbonise
our operations		 As a small organisation in which staff work from home, travel associated with
Board Meetings is one of the main sources of carbon emissions. In 2023,
Trustees continued to minimise travel in order to reduce emissions, with four out
of five meetings held online.

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.

The Trustees intend to grow the social investment portfolio, aiming to make a further two to three investments in the next 18 months.

In 2024 the Trustees intend to partner with a rewilding charity to return the remaining land assets of JAC Trust to nature.

Audit

A resolution proposing that Sumer Audit be re-appointed as the auditors of the charity for the financial year ending 31 December 2023 was passed at a meeting of the JAC Trust Board held on 24 May 2023.

Page 8

JAC Trust Report of the Trustees for the Year Ended 31 December 2023

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

This report was approved by the Trustees on ………………….……….. and signed on their behalf 15th May 2024 by:

…………………………………………..

William Pym 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 2023 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: ............................................. 12 June 2024

Page 11

JAC Trust

Statement of Financial Activities for the Year Ended 31 December 2023

Unrestricted
funds
Notes
£
INCOME AND ENDOWMENTS
FROM
Donations and legacies
2
-
Investment income
3
191,721
Total
191,721
EXPENDITURE ON
Raising funds
4
14,397
Charitable activities
5
Family Fund
246,500
Climate Change and Forced
Displacement
212,181
Total
473,078
Net gains/(losses) on
investments
-
NET INCOME/(EXPENDITURE)
(281,357)
Transfers between funds
19
383,051
Other recognised
gains/(losses)
Gains/(losses) on revaluation of
fixed assets
-
Net movement in funds
101,694
RECONCILIATION OF FUNDS
Total funds brought forward
107,180
TOTAL FUNDS CARRIED
FORWARD
208,874		 Restricted
fund
£
12,500
-
12,500
-
-
12,500
12,500
-
-
-
-
-
-
-		 Endowment
funds
£
-
-
-
50,415
-
346,475
396,890
2,112,594
1,715,704
(383,051)
(4,740)
1,327,913
11,274,913
12,602,826		 2023
Total
funds
£
12,500
191,721
204,221
64,812
246,500
571,156
882,468
2,112,594
1,434,347
-
(4,740)
1,429,607
11,382,093
12,811,700		 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

The notes form part of these financial statements

Page 12

JAC Trust

Balance Sheet

31 December 2023

Unrestricted
funds
Notes
£
FIXED ASSETS
Tangible assets
12
824
Investments
Investments
13
-
Investment property
14
-
Social investments
15
148,000
148,824
CURRENT ASSETS
Debtors
16
323
Cash at bank
85,487
85,810
CREDITORS
Amounts falling due within one
year
17
(25,760)
NET CURRENT ASSETS
60,050
TOTAL ASSETS LESS
CURRENT LIABILITIES
208,874
CREDITORS
Amounts falling due after more
than one year
18
-
NET ASSETS
208,874
FUNDS
19
Unrestricted funds
Endowment funds:
Expendable endowment
Tangible fixed asset revaluation reserve
TOTAL FUNDS		 Restricted
fund
£
-
-
-
-
-
-
-
-
-
-
-
-
-		 Endowment
funds
£
274,089
12,073,377
601,835
-
12,949,301
-
-
-
(214,384)
(214,384)
12,734,917
(132,091)
12,602,826		 2023
Total
funds
£
274,913
12,073,377
601,835
148,000
13,098,125
323
85,487
85,810
(240,144)
(154,334)
12,943,791
(132,091)
12,811,700
208,874
12,523,289
79,537
12,602,826
12,811,700		 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

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by: 15 May 2024

............................................. W Pym - Trustee

The notes form part of these financial statements

Page 13

JAC Trust

Cash Flow Statement

Cash Flow Statement
Cash flows from operating activities
Cash generated from operations
Net cash used in operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Purchase of fixed asset investments
Purchase of social investments
Sale of tangible fixed assets
Sale of fixed asset investments
Other recognised gains and losses
Interest received
Dividends received
Property income
Net cash provided by investing activities
Cash flows from financing activities
Expenditure attributable to endowment
Net cash used in financing activities
Change in cash and cash equivalents
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end
the reporting period		 for the Year Ended 31 December 2023
2023
Notes
£
22
(359,208)
(359,208)
-
(3,328,082)
(124,000)
815,001
1,838,375
1,346,845
5,465
171,584
14,672

739,860
(396,890)
(396,890)
in
(16,238)
101,725
of
85,487		 2022
£
(47,393)
(47,393)
(1,649)
(1,878,340)
(24,000)
-
1,995,071
-
964
142,651
24,192
258,889
(293,673)
(293,673)
(82,177)
183,902
101,725
Notes
22

in
of

The notes form part of these financial statements

Page 14

JAC Trust

Notes to the Financial Statements

for the Year Ended 31 December 2023

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.

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.

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.

Page 15

continued...

JAC Trust

Notes to the Financial Statements - continued for the Year Ended 31 December 2023

1. ACCOUNTING POLICIES - continued

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 short-term, 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.

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.

Page 16

continued...

JAC Trust

Notes to the Financial Statements - continued for the Year Ended 31 December 2023

1. ACCOUNTING POLICIES - continued

Financial instruments

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

2. DONATIONS AND LEGACIES
2023 2022
£ £
Donations 12,500 150
3. INVESTMENT INCOME
2023 2022
£ £
Property income 14,672 24,192
Listed investment portfolio 171,584 142,651
Deposit account interest 3,882 964
Interest receivable - trading 1,583 -
191,721 167,807
4. RAISING FUNDS
Raising donations and legacies
2023 2022
£ £
Rental expenses 14,397 8,394

Page 17

continued...

JAC Trust

Notes to the Financial Statements - continued for the Year Ended 31 December 2023

4. RAISING FUNDS - continued

Investment management costs
Exchange rate losses
Investment management
Aggregate amounts
5.
CHARITABLE ACTIVITIES COSTS
Family Fund
Climate Change and Forced
Displacement
6.
GRANTS PAYABLE
Family Fund
Climate Change and Forced Displacement
The total grants paid to institutions during the year was as follows:
ARSDO
CHASE Africa
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
Re-Alliance Grant
REDESO Grant
Shared Action Africa
SHED Grant
YICE Grant
FUNDEPAZ
CAMGEW Grant
Alfred Gillet Trust
Afgahnaid
Street Theatre Workshop
MSF		 Grant
funding of
activities
(see note
6)
£
246,500
509,188
755,688		 2023
£
4,449
45,966
50,415
64,812
Support
costs (see
note 7)
£
-
61,968
61,968
2023
£
246,500
509,188
755,688
2023
£
-
90,000
-
-
-
-
-
-
-
12,500
-
-
-
15,000
60,000
59,200
60,000
60,000
48,267
57,874
59,847
200,000
15,000
3,000
15,000
755,688		 2022
£
9,710
46,365
56,075
64,469
Totals
£
246,500
571,156
817,656
2022
£
47,500
374,511
422,011
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

Page 18

continued...

JAC Trust

Notes to the Financial Statements - continued

for the Year Ended 31 December 2023

  1. GRANTS PAYABLE - continued

Reconciliation of grants

Reconciliation of grants
£
Grants committed for the year 755,688
Grants paid during the year (646,811)
Commitments at 1 January 2022 237,598
Commitments at 31 December 2023 346,475
Commitments at 31 December 2023 are payable as follows:
Within one year 214,384
After more than one year 132,091
346,475
7. SUPPORT COSTS
Governance
Management Other costs Totals
£ £ £ £
Climate Change and Forced Displacement 235 54,630 7,103 61,968

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 Other Governance 2023 2022
£ £ £ £
Staff costs 38,185 - 38,185 34,170
Administration 9,489 1,372 11,861 11,268
Meetings, travel and office 1,867 466 2,333 4,891
Website and grant management 562 - 562 1,248
AFC membership and seminars 1,277 - 1,277 1,283
Accountancy - 438 438 420
Audit - 6,580 6,580 6,905
Legal - - - (1,103)
Insurance 235 - 235 225
Depreciation 412 - 412 412
Bank charges and FX adjustments - 85 85 234
52,027 8,941 60,968 59,953

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.

Page 19

continued...

JAC Trust

Notes to the Financial Statements - continued for the Year Ended 31 December 2023

8. AUDITORS' REMUNERATION

AUDITORS' REMUNERATION
2023 2022
£ £
Fees payable to the charity's auditors for the audit of the charity's financial
statements 6,580 6,905

9. 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 (2022: £nil).

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

Trustees' expenses

Trustees were reimbursed for travel costs incurred on trust business (i.e. attending trustee meetings), and the trust also paid for membership and training courses for the trustees provided by the Association of Charitable Foundations. These expenses totalled £nil (2022: £2,014).

10. STAFF COSTS

STAFF COSTS
Wages and salaries
Other pension costs
The average monthly number of employees during the year was as follows:
Charitable activities		 2023
£
36,651
1,534
38,185
2023
1		 2022
£
32,886
1,284
34,170
2022
1

No employees received emoluments in excess of £60,000.

11. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations and legacies
Investment income
Total
EXPENDITURE ON
Raising funds
Charitable activities
Family Fund
Climate Change and Forced Displacement
Total
Net gains/(losses) on investments
NET INCOME/(EXPENDITURE)
Transfers between funds
Other recognised gains/(losses)
Gains on revaluation of fixed assets		 Unrestricted
funds
£
150
167,807
167,957
8,394
75,478
168,888
252,760
-
(84,803)
60,656
-		 Restricted
fund
£
-
-
-
-
-
-
-
-
-
-
-		 Endowment
funds
£
-
-
-
56,075
-
237,598
293,673
(4,003)
(297,676)
(60,656)
29,429		 Total
funds
£
150
167,807
167,957
64,469
75,478
406,486
546,433
(4,003)
(382,479)
-
29,429

Page 20

continued...

JAC Trust

Notes to the Financial Statements - continued for the Year Ended 31 December 2023

11.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued
Unrestricted
Restricted
Endowment
funds
fund
funds
£
£
£
Net movement in funds
(24,147)
-
(328,903)
RECONCILIATION OF FUNDS
Total funds brought forward
131,327
-
11,603,816
TOTAL FUNDS CARRIED FORWARD
107,180
-
11,274,913
12.
TANGIBLE FIXED ASSETS
Freehold
Computer
property
equipment
£
£
COST OR VALUATION
At 1 January 2023
278,829
1,649
Revaluations
(4,740)
-
At 31 December 2023
274,089
1,649
DEPRECIATION
At 1 January 2023
-
412
Charge for year
-
413
At 31 December 2023
-
825
NET BOOK VALUE
At 31 December 2023
274,089
824
At 31 December 2022
278,829
1,237		 Total
funds
£		 Total
funds
£
(353,050)
11,735,143
11,382,093
Totals
£
280,478
(4,740)
275,738
412
413
825
274,913
280,066

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.

13. FIXED ASSET INVESTMENTS

MARKET VALUE
At 1 January 2023
Additions
Disposals
Revaluations
At 31 December 2023
NET BOOK VALUE
At 31 December 2023
At 31 December 2022		 Investments
£
7,180,140
1,625,888
(1,660,126)
450,629
7,596,531
7,596,531
7,180,140		 Unlisted
investments
£
2,320,036
-
(2,027)
276,822
2,594,831
2,594,831
2,320,036		 Cash and
settlements
pending
£
356,043
1,702,194
(176,222)
-
1,882,015
1,882,015
356,043		 Totals
£
9,856,219
3,328,082
(1,838,375)
727,451
12,073,377
12,073,377
9,856,219

Page 21

continued...

JAC Trust

Notes to the Financial Statements - continued for the Year Ended 31 December 2023

  1. FIXED ASSET INVESTMENTS - continued
£
Listed shares and securities 7,596,531
Unlisted shares 2,594,831
Cash held as part of the investment portfolio 1,882,015
12,073,377
£
Investment assets in the UK 8,806,869
Investment assets outside the UK 3,266,508
12,073,377

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 £450,629 increase in the value of listed investments and a £276,822 increase in value of unlisted investments.

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 1,318,202

C & J Clark Ltd £1 ordinary shares 1,318,202
£
Valuation at 1 January 2023 2,320,036
Disposals (1,029)
Revaluation 275,824
Valuation at 31 December 2023 2,594,831

At 31 December 2023 the trustees held 1,317,173 £1 ordinary shares. These shares have been valued at £1.97 per share based on a valuation of the issued ordinary shares by BDO on 31 May 2023.

14. INVESTMENT PROPERTY

FAIR VALUE
At 1 January 2023
Disposals
Revaluation
At 31 December 2023
NET BOOK VALUE
At 31 December 2023
At 31 December 2022		 £
1,377,463
(815,000)
39,372
601,835
601,835
1,377,463

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 7% (2022: 13%).

Page 22

continued...

JAC Trust

Notes to the Financial Statements - continued for the Year Ended 31 December 2023

15. SOCIAL INVESTMENTS

MARKET VALUE
At 1 January 2023
Additions
At 31 December 2023
NET BOOK VALUE
At 31 December 2023
At 31 December 2022		 Mixed
motive
investments
£
24,000
124,000
148,000
148,000
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 2024 a loan of £48,000 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. Also included is a £100,000 investment in Conduit EIS Impact Fund aimed at innovative climate and social impact start-ups.

16. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

16.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Other debtors
Prepayments and accrued income
17.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Grants payable
Accruals and deferred income
18.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Grants payable
19.
MOVEMENT IN FUNDS
Net
movement
At 1.1.23
in funds
£
£
Unrestricted funds
General fund
107,180
(281,357)
Endowment funds
Expendable endowment
11,190,636
1,715,704
Tangible fixed asset revaluation reserve
84,277
(4,740)
11,274,913
1,710,964
TOTAL FUNDS
11,382,093
1,429,607		 2023
£
-
323
323
2023
£
214,384
25,760
240,144
2023
£
132,091
Transfers
between
funds
£
383,051
(383,051)
-
(383,051)
-		 2022
£
3,408
662
4,070
2022
£
140,217
23,852
164,069
2022
£
97,381
At
31.12.23
£
208,874
12,523,289
79,537		 2022
£
3,408
662
4,070
2022
£
140,217
23,852		 2022
£
3,408
662
4,070
164,069
2022
£
97,381
12,602,826
12,811,700

Page 23

continued...

JAC Trust

Notes to the Financial Statements - continued for the Year Ended 31 December 2023

19. MOVEMENT IN FUNDS - continued

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

Unrestricted funds
General fund
Restricted funds
International Refugee Trust
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
£
191,721
12,500
-
-
-
204,221
At 1.1.22
£
131,327
11,548,968
54,848
11,603,816
11,735,143		 Resources
expended
£
(473,078)
(12,500)
(396,890)
-
(396,890)
(882,468)
Net
movement
in funds
£
(84,803)
(297,676)
29,429
(268,247)
(353,050)		 Gains and
losses
£
-
-
2,112,594
(4,740)
2,107,854
2,107,854
Transfers
between
funds
£
60,656
(60,656)
-
(60,656)
-		 Movement
in funds
£
(281,357)
-
1,715,704
(4,740)
1,710,964
1,429,607
At
31.12.22
£
107,180
11,190,636
84,277
11,274,913
11,382,093

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
£
167,957
-
-
-
167,957		 Resources
expended
£
(252,760)
(293,673)
-
(293,673)
(546,433)		 Gains and
Movement
losses
in funds
£
£
-
(84,803)
(4,003)
(297,676)
29,429
29,429
25,426
(268,247)
25,426
(353,050)

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.

Page 24

continued...

JAC Trust

Notes to the Financial Statements - continued for the Year Ended 31 December 2023

19. MOVEMENT IN FUNDS - continued

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

20. RELATED PARTY DISCLOSURES

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

21. ULTIMATE CONTROLLING PARTY

The charity is controlled jointly by the trustees.

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

ACTIVITIES
2023 2022
£ £
Net income/(expenditure) for the reporting period (as per the
Statement of Financial Activities) 1,434,347 (382,479)
Adjustments for:
Depreciation charges 413 412
(Gain)/losses on investments (2,113,668) 4,003
Profit on disposal of fixed assets (1) -
Interest received (5,465) (964)
Dividends received (171,584) (142,651)
Expenditure attributable to endowment 396,890 293,673
Property income (14,672) (24,192)
Decrease/(increase) in debtors 3,747 (3,526)
Increase in creditors 110,785 208,331
Net cash used in operations (359,208) (47,393)

23. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.23 Cash flow At 31.12.23
£ £ £
Net cash
Cash at bank 101,725 (16,238) 85,487
101,725 (16,238) 85,487
Total 101,725 (16,238) 85,487

24. 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 31 May 2023.

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.

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