## **JCA CHARITABLE FOUNDATION ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
**Registered Charity No: 207031**
## **AZETS AUDIT SERVICES Chartered Accountants**
**Greytown House 221 – 227 High Street Orpington Kent BR6 0NZ**
**JCA CHARITABLE FOUNDATION**
## **CONTENTS**
||**Page**|
|---|---|
|Reference and Administrative Details|1 – 2|
|Report of the Council|3 - 6|
|Independent Auditor’s Report|7 – 9|
|Statement of the Financial Activities|10|
|Comparative Statement of Financial Activates|11|
|Balance Sheet|12|
|Statement of Cash Flows|13|
|Notes to the Financial Statement|14 – 24|
**JCA CHARITABLE FOUNDATION**
## **REFERENCE AND ADMINISTRATIVE DETAILS**
|**Trustees (hereafter referred to**|Sir Stephen Waley-Cohen Bt (President)|
|---|---|
|**as Council Members)**|Mr Jacques Capelluto|
||Mr William Cohen|
||Mr Geoffrey Gestetner|
||Mme Beatrice Jouan|
||Mr Avner Hermoni|
||Mrs Tal Kvatinsky|
||Mr Peter Lawrence|
||Mr Jacques-Martin Philippson|
||Mr Manuel Sussholz|
||Mr Marc Vellay|
||Mr Jonathan Walker – Resigned 1 June 2020|
||Mr Doron Weiss|
||Prof Shmuel Wolf|
||Ms Shani Zindel|
||Dr Yaffa Ben-Ami|
|**Honorary Vice-President**|Mr Yehiel Admoni|
||Baron Alain Philippson|
|**Honorary Council Members**|Dr Relly Brickner - Died 9 April 2020|
||Prof Yona Chen|
||Mr Efraim Halevy|
||Mr John Jakobi – Died 26 January 2020|
||Mr Isaac Lidor – Died 14 July 2020|
||Mr Yoki Lothan|
||Mrs Hana Smouha|
|**Key Management Personnel**|Sir Stephen Waley-Cohen Bt – President – Council Member|
||Mr Tim Martin – Administrator, Consultant|
||Ms Zeev Miller – Israel Manager|
|**Registered Office**|39 Church Meadow|
||Long Ditton|
||KT6 5EP|
|**Registered Charity Number**|207031|
|**Independent Auditor**|Azets Audit Services|
||Greytown House|
||221-227 High Street|
||Orpington|
||Kent|
||BR6 0NZ|
|**Bankers**|CAF Bank Limited|
||Kings Hill|
||Kent|
||ME19 4TA|
1
**JCA CHARITABLE FOUNDATION**
## **REFERENCE AND ADMINISTRATIVE DETAILS**
**Solicitors** Maurice Turnor Gardner LLP 15[th] Floor, Milton House Milton Street London EC2Y 9BH **Investment Portfolio Manager** Partners Capital 5 Young Street London W8 5EH
2
**JCA CHARITABLE FOUNDATION**
## **REPORT OF THE COUNCIL**
The Council, who are also the trustees of the Foundation, present their Annual Report together with the Audited Financial Statements for the year ended 31 December 2020. The Council have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity.
The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK published on 16 July 2014 as amended by Bulletin 1 & 2.
## **OBJECTIVES AND ACTIVITIES**
## **Objectives and Aims**
The JCA Charitable Foundation was formed in 1891. It was originally set up by a bequest from Le Baron de Hirsch of £5.9m.
During 2019 the Council decided that it was time to modernize the governance and legal status of the JCA, as much of the formal arrangements were still more appropriate to the 19th than to the 21st century. Accordingly, and having taken legal advice, it was decided to convert from being a private company limited by shares, with shareholders, to the relatively new status especially created for charities of a Charitable Incorporated Organisation (‘CIO). Having obtained the permission of the Charities Commission an Extraordinary General Meeting of the company was held on 19 February 2020 at which the new status was adopted and modernised charitable objectives adopted. Thus JCA moved into the modern charitable world. One effect of the change was that JCA no longer has shareholders, and therefore those clauses in our former constitution which gave the right to larger shareholders to nominate Council members came to an end. Recognizing the important role which our former shareholders had played, and the desirability of maintaining an international representation among our Council members, the Council has resolved to continue to consult with the existing Council members from each country now represented on Council (Belgium, France, Israel, UK and USA) when considering appointments of new Council members from those countries.
The Foundation formally converted to a CIO on 25 September 2020.
Our new Objects clause states:
The objects are, for the public benefit and in any part of the world,
- a) the relief of those in need by reason of youth, age, ill health, disability, financial hardship or other disadvantage; and b) the advancement of education,
within the Jewish community and within communities with which the Jewish community interacts.
The new reference to communities with which the Jewish Community interacts enables us to maintain our activities, as described below, while also enabling us to work with the non-Jewish communities in Israel and to promote joint activities between Jewish and non-Jewish communities.
The Foundation’s work is currently almost all in Israel, entirely within the ‘green line’, i.e. not in occupied territories, and is concentrated in the rural areas of the periphery. The Council selects Regional Council areas suitable for its work, and focuses its efforts on those regions.
## **Principal Activities**
The principal activities of the Foundation are to make grants for education and economic development in the rural areas of the periphery. Economic development includes practical and applied research for agriculture, as well as non-agricultural developments such as rural tourism. Grants for educational purposes are at every level from primary to tertiary, again to institutions located on or servicing the rural areas of the periphery.
In selecting projects for support the Council pays heed to the advice of its Israel Manager and the Israeli Members of Council, and seeks to achieve leverage from its support; this leverage comes from rarely contributing more than half of a project’s cost; from identifying innovation, catalytic impact, and employment possibilities arising from the projects; from encouraging new immigrants to its selected regions; and from seeking to raise educational attainments.
## **Grant-Making Policy**
The JCA maintains a policy of making a percentage of the Net Asset Value available for expenditure each year which has been around 4% for a number of years. This is reviewed annually by the Council. Administration expenditure is kept to the minimum leaving the balance available for Grants.
3
**JCA CHARITABLE FOUNDATION**
## **REPORT OF THE COUNCIL**
## **Public Benefit**
The Council confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Foundation’s aim and objectives and in planning future activities and setting the grant making policy for the year.
## **STRATEGIC REPORT**
## **Achievements and Performance**
At the Council Meeting in October 2020 Grants of $2,104,000 were approved for the following 12 months (including previous commitments). These were selected from those proposed to the Israel office and reviewed first by the Israeli Members of Council and the Israel Manager and subsequently by the full Council. Grants paid in 2020 totalled $2,583,003 shown in Note 5 to the Financial Statements. These were allocated as follows:
||**2020**||**2019**||
|---|---|---|---|---|
|**Grants**|**US$**|**%**|**US$**|**%**|
|Education|986,450|38%|672,916|27%|
|Agriculture|884,418|34%|1,237,085|50%|
|Other economic development
including tourism and various|712,135|28%|553,510|23%|
||_______________||_______________||
|Total grant payments|2,583,003||2,463,511||
||_______________||_______________||
## **Financial Review**
The income of the charity was £209k (2019: £413k) and expenditure of £2.41m (2019: £2.36m). The surplus for the charity after losses / gains on investments was £3.95m (2019: £8.84m).
Reserves at the year end were, unrestricted funds £19.3m (2019: £13.3m), designated funds £15m (2019: £15m) and endowment funds of £23.9m (2019: £23.9m).
## **Reserves Policy**
The Council aims to maintain free reserves at a level which will provide sufficient funds to respond to applications for grants and ensure that there are sufficient funds available to cover support and governance costs for a period of at least twelve to eighteen months. The actual level of unrestricted reserves of the Charity at 31 December 2020 was £19.3m (2019: £13.3m) which is approximately four times the funds needed to maintain the policy of making 4% of the Net Asset Value available for grants whilst keeping expenditure to a minimum.
Endowment funds totalled £23.9m (2019 £23.9m), designated funds totalled £15m (2019 £15m).
## **Risk Review**
The Council have conducted a review of the major risks to which the charity is exposed and systems have been established to mitigate those risks.
The principal economic and reputational risks arise from
- a) the possibility of an unsuccessful investment policy which Council has delegated to an Investment Committee of Council Members based in London who, collectively, have considerable relevant experience and from the use of a highly professional and carefully selected investment manager, whose performance is kept under constant review, and
- b) supporting unsuccessful projects, which risk is mitigated by usually contributing less than half the total cost, often for buildings or equipment whose cost is supported by invoices. The risk is further managed by close liaison with project sponsors, often local government, other funders, and the project management. This is managed by the Israel Manager in consultation with the Israeli Members of Council who have extensive experience in the activities offered support.
4
**JCA CHARITABLE FOUNDATION**
## **INDEPENDENT AUDITORS REPORT TO THE COUNCIL MEMBERS**
## **Investment Policy**
The Council intend that the real value of the Foundation’s assets be maintained and enhanced over the long term by a varied investment portfolio. For the purpose of the charity, the Council wish to withdraw an amount each year to meet their grant expenditure. This requirement will be discussed with the investment portfolio managers as necessary. The withdrawals may be met from income or capital.
In order to meet these objectives the Council have appointed Partners Capital to advise on suitable investments to manage diversified portfolios of suitable investments on a discretionary basis. They have selected a balanced investment objective with medium risk. The proportions invested in quoted and unquoted equities (US, UK, European and emerging markets), usually through index stocks or managed funds, in fixed income stocks or other credit funds, in property funds and in cash are reviewed with Partners Capital from time to time to provide guidance on ongoing suitability of that element of investment policy.
In addition the charity may invest directly in unlisted companies in pursuit of its charitable objectives. This may involve investment in start-up companies which will have a higher risk profile than the quoted investment portfolio. However, as part of a diversified investment portfolio the Council believe this is appropriate in pursuit of both the charitable objectives and the investment objectives.
The Council will regularly consider whether there is a need to revise this policy and keep under review the arrangements under which Partners Capital act as our managers. We have appointed an investment committee comprising of Sir Stephen Waley-Cohen, Mr Geoffrey Gestetner, Mr Peter Lawrence and Ms Shani Zindel with Mr William Cohen in attendance. The investment committee meets several times a year in London. We have entered a 5 year agreement with Partners Capital with reduced fees, conditional upon satisfactory performance.
## **Future Plans**
JCA continues to support development projects particularly in education and economic development which will assist in furtherance of its charitable objects.
## **Post Balance Sheet Events**
There are no post year events that effect the charity’s ability to operate. Due to the Covid-19 pandemic the investments fell in value but have subsequently recovered. The Council Members do not see any long-term effects on the Foundation of Covid-19.
## **STRUCTURE GOVERNANCE AND MANAGEMENT**
## **Governing Document**
The charity’s constitution converted from a private limited company to a CIO on 25 September 2020.
## **Council Members**
The Council Members during the year were as follows:-
Sir Stephen Waley-Cohen Bt (President) Mr Yaffa Ben-Ami Mr Jacques Capelluto Mr William Cohen Mr Geoffrey Gestetner Mr Avner Hermoni Mme Beatrice Jouan Mrs Tal Kvantinsky Mr Peter Lawrence Mr Jacques-Martin Philippson Mr Manuel Sussholz Mr Marc Vellay Prof Shmuel Wolf Mr Doron Weiss Ms Shani Zindel
The affairs and business of the charity are under the general control of a Council which must consist of not less than three and not more than twenty trustees, each of whom are required to be members of the CIO, and who shall be elected by the CIO in General Meeting.
Each member of the Council shall hold office for a term of five years or thereabouts from the date of his/her election until the Annual General Meeting held in the fifth year after the year of his/her election, but shall be eligible for re-election at such Annual General
5
## **JCA CHARITABLE FOUNDATION**
## **INDEPENDENT AUDITORS REPORT TO THE COUNCIL MEMBERS**
Meeting for a further term of five years or thereabouts with a similar opportunity for re-election. If considered in the best interests of the charity, a Council member’s term can be invited to serve more than ten consecutive years as a trustee.
The Council shall have power at any time and from time to time to appoint any person as a Member of the Council, either to fill a casual vacancy, or as an addition to the Council but so that the total number of Members shall not exceed the maximum number. Any person so appointed shall retire at the next Annual General Meeting but shall then be eligible for re-election.
Meetings of the Council shall be held at least once a year. Three members of the Council shall be a quorum for the transaction of business.
## **Key management personnel remuneration**
The Council consider the President, the Israel Manager and the Administrator as comprising the key management personnel of the charity in charge of directing and controlling the charity and running and operating the charity on a day to day basis. All Council members give of their time freely and no Council member remuneration was paid in the year. Details of Council members expenses and related party transactions are disclosed in note 8 to the accounts. The Administrator is paid a fee and the Israel Manager receives a salary from the subsidiary company.
Council members are required to disclose all relevant interests and register them with the administrator and in accordance with the Foundation’s policy withdraw from decisions where a conflict of interest arises.
The fee of the charity’s administrator is reviewed annually by a sub committee of the Council who have regard to the time and expenditure involved and the cost of any alternative.
## **Statement of Council Responsibilities**
The Council are responsible for preparing the Council’s Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the Council to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.
In preparing these financial statements, the Council are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP 2015 (FRS 102);
- make judgements and estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Council are responsible for keeping adequate 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 Constitution of the Foundation. 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.
## **Statement as to Disclosure of Information to Our Auditors**
In so far as the Council are aware at the time of approving the Report of the Council:
- there is no relevant audit information of which the CIO’s auditor is unaware; and
- the Council have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
By Order of the Council
## **Sir Stephen Waley-Cohen Bt President**
**13 October 2021**
6
## **JCA CHARITABLE FOUNDATION**
## **INDEPENDENT AUDITORS REPORT TO THE COUNCIL MEMBERS**
## **Opinion**
We have audited the financial statements of JCA Charitable Foundation (the ‘charity’) for the year ended 31 December 2020 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 31 December 2020 and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the 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 Council's 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 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 Council Members with respect to going concern are described in the relevant sections of this report.
## **Other information**
The Council Members are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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**
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Council Member’s report.
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the information given in the financial statements is inconsistent in any material respect with the Council Member’s report; or
- • sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
7
**JCA CHARITABLE FOUNDATION**
## **INDEPENDENT AUDITORS REPORT TO THE COUNCIL MEMBERS**
## **Responsibilities of Council Members**
As explained more fully in the Council’s responsibilities statement, the Council members are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Council members 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 Council Members 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 Council Members either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Extent to which the audit was considered capable of detecting irregularities, including fraud**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
- Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
- Reviewing minutes of meetings of those charged with governance;
- Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the charity through enquiry and inspection;
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
- Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
8
## **JCA CHARITABLE FOUNDATION**
## **INDEPENDENT AUDITORS REPORT TO THE COUNCIL MEMBERS**
## **Other matter**
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "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)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
This has been done in order for the financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2016.
## **Use of our report**
This report is made solely to the charity’s Council Member’s, 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 Council Members 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 Council Members as a body, for our audit work, for this report, or for the opinions we have formed.
Azets Audit Services Greytown House 221-227 High Street Orpington Kent BR6 0NZ
19 October 2021
9
## **JCA CHARITABLE FOUNDATION**
## **STATEMENT OF FINANCIAL ACTIVITIES**
## **YEAR ENDED 31 DECEMBER 2020**
|**Income and Expenditure Account**
**Note**
**Unrestricted**
**funds**
**Endowment**
**Fund**
**£’000**
**£’000**
**Income from:**
Investments
2
86
-
Income from oil leases
38
-
Loan repayments and interest
85
-
**Total income**
209
-
**Expenditure on:**
Investment managers fees
4
37
-
Charitable activities
3
2,373
-
**Total expenditure**
3
2,410
-
**Net expenditure and net movement in**
**funds before gains and losses on**
**investments**
(2,201)
-
Net gains on investments
10
6,154
-
**Net movement in funds**
3,953
-
Total funds at 1 January 2020
30,312
23,885
**Total funds at 31 December 2020**
34,265
23,885
|**Total**
**2020**
**(As**
**£’000**
86
38
85
209
37
2,373
2,410
(2,201)
6,154
3,953
54,197
58,150|**Total**
**2019**
**restated)**
**£’000**
357
44
12
413
79
2,277
2,356
(1,943)
10,785
8,842
45,355
54,197
|
|---|---|---|
All transactions are derived from continuing activities.
All recognised gains and losses are included in the Statement of Financial Activities.
10
## **JCA CHARITABLE FOUNDATION**
## **STATEMENT OF FINANCIAL ACTIVITIES**
## **YEAR ENDED 31 DECEMBER 2020**
|**Comparative Income and Expenditure (As**|||||
|---|---|---|---|---|
|**restated)**|**Note**|**Unrestricted**|**Endowment**|**Total**|
|||**Funds**|**Fund**|**2019**|
|||**(as restated)**||**(as restated)**|
|||**£’000**|**£’000**|**£’000**|
|**Income from:**|||||
|Investments|2|357|-|357|
|Income from oil leases||44|-|44|
|Loan repayments and interest||12
|-
|12|
|**Total income**||413
|-
|413|
|**Expenditure on:**|||||
|Managing funds|4|79|-|79|
|Charitable activities||2,278
|-
|2,278|
|**Total expenditure**|**3**|2,356
|-
|2,356|
|**Net expenditure and net movement in funds**
**before gains and losses on investments**||(1,943)|-|(1,943)|
|Net gains on investments|10|10,785
|-
|10,785|
|**Net movement in funds**||8,842|-|8,842|
|Total funds at 1 January 2019||21,470
|23,885
|45,355|
|**Total funds at 31 December 2019**||30,312|23,885|54,197|
|||_____________|____________|____________|
11
## **JCA CHARITABLE FOUNDATION**
## **BALANCE SHEET**
## **AS AT 31 DECEMBER 2020**
||||**2020**|||**2019**||
|---|---|---|---|---|---|---|---|
||**Notes**|**£’000**||**£’000**|**£’000**||**£’000**|
|**Fixed assets**||||||||
|Investments|10|||58,091|||53,642|
|**Current assets**||||||||
|Debtors|11|152|||436|||
|Cash at bank and in hand||8|||242|||
|||______________|||______________|||
|||160|||678|||
|**Creditors:**Amounts falling||||||||
|due within one year|12|(16)|||(38)|||
|||______________|||______________|||
|**Net current assets**||||144|||640|
|**Provisions for liabilities and**
**charges**|13|||(85)|||(85)|
||||_______________|||_______________||
|**Net assets**||||58,150|||54,197|
|||||||||
||||_______________|||_______________||
|**Capital and funds**||||||||
|Share capital|14|||-|||2,000|
|Unrestricted funds|14|||19,265|||13,312|
|Designated funds|14|||15,000|||15,000|
|Endowment funds|15|||23,885|||23,885|
||||_______________|||_______________||
||15|||58,150|||54,197|
||||_______________|||_______________||
Approved by the Board of the Council on 13 October 2021 and signed on their behalf by:
**Sir Stephen Waley-Cohen Bt President**
**Geoffrey Gestetner Council Member**
12
## **JCA CHARITABLE FOUNDATION**
## **STATEMENT OF CASH FLOWS**
## **YEAR ENDED 31 DECEMBER 2020**
|**Notes**
**Cash flow from operating activities**
18
**Net cash flow from operating activities**
**Cash flow from investing activities**
Payments to acquire investments
Receipts from sales of investments
Loans repaid in the year
Dividends received
**Net cash flow from investing activities**
**Net increase in cash and cash equivalents**
**Cash and cash equivalents at 1 January 2020**
**Cash and cash equivalents at 31 December 2020**
**Cash and cash equivalents consists of:**
Cash at bank and in hand
**Cash and cash equivalents at 31 December 2020**|**2020**
**2019**
**(As restated)**
**£’000**
**£’000**
(2,232)
(2,392)
______________
______________
(2,232)
(2,392)
______________
______________
(21,334)
(33,859)
23,039
36,208
207
(264)
86
357
______________
______________
1,998
2,262
______________
______________
(234)
(130)
242
372
______________
______________
8
242
______________
______________
8
242
______________
______________
8
242
|
|---|---|
13
**JCA CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **1. ACCOUNTING POLICIES**
## **1.1** _**Basis of Accounting and Preparation**_
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with 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 (FRS 102), the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015 and amended for Bulletin 1 & 2.
The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
## **1.2**
## _**Income**_
All income is included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.
For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.
Investment income is earned through holding assets for investment purposes such as shares. It includes dividends and interest. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity’s right to receive payment is established.
## **1.3**
## _**Expenditure**_
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:
- Costs of raising funds includes the cost of publicising the charity.
- Expenditure on charitable activities includes the grants awarded.
Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.
Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity.
## _**1.4**_
## _**Support costs allocation**_
Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.
The analysis of these costs is included in note 6.
14
**JCA CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
**1.5** _**Funds**_ Unrestricted funds are those funds which can be used at the discretion of the Council Members in accordance with the charitable objectives.
Endowment funds are a capital fund where there is no power to convert the capital into income (permanent endowment fund), which must generally be held indefinitely. With the expendable endowment, the Council Members have power to convert the capital into income. **1.6** _**Foreign Currencies**_ Assets and liabilities denominated in foreign currencies, with the exception of the Fixed Assets of ICA in Israel are translated at the rate of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All exchange differences arising from the above are included in the Statement of Financial Activities. **1.7** _**Debtors and creditors receivable / payable within one year**_ Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure. **1.8 Investments** Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘net gains / (losses) on investments’ in the SoFA if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment. **1.9** _**Taxation**_ The CIO is entitled to the exemptions from corporation tax afforded by section 505 of the Income and Corporation Taxes Act 1988. Accordingly, there is no corporation tax charge in these financial statements. **1.10** _**Going Concern**_ The financial statements have been prepared on a going concern basis as the Council Members believe that no material uncertainties exist. The Council Members have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern. This included consideration of the effect of the Covid-19 virus on the Foundations's operations. **1.11 Financial instruments** Basic financial instruments are recognised at amortised cost, except for investments in nonconvertible preference and non-puttable ordinary shares which are measured at fair value, with changes recognised in profit or loss. Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in profit or loss. **1.12** _**Judgements and key sources of estimation uncertainty**_ The following judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the financial statements:
## _Bad debts_
Trade debtors are regularly reviewed for recoverability, any debts which in the opinion of management are not recoverable are provided for as a specific bad debt. There are no key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. **1.13** _**Consolidation**_ The Council have not produced consolidated accounts on the basis the activity in the subsidiary is immaterial to the whole.
15
**JCA CHARITABLE FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **2. INVESTMENT INCOME**
|Dividends from portfolios:
Partners’ Capital
**3.**
**ANALYSIS OF EXPENDITURE**
Managing funds
Charitable activities
Grants payable (note 5)
Field office, ICA in Israel
**Total expenditure**|**Staff**
**costs**
**£’000**
-
15
195
___________
210|**Direct**
**costs**
**£’000**
37
2,064
46
__________
2,147|**2020**
**£’000**
86
_______________
86
_______________
**Support**
**Total**
**costs**
**2020**
**£’000**
**£’000**
-
37
49
2,128
4
245
__________
__________
53
2,410|**2019**
**£’000**
357
_______________
357
_______________
**Total**
**2019**
**(as restated)**
**£’000**
79
2,072
205
__________
2,356|
|---|---|---|---|---|
All costs are allocated between the expenditure categories noted above on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis, for example, time spent.
## **4. MANAGING FUNDS**
|Portfolio fees – current year|**2020**
**2019**
**(as restated)**
**£’000**
**£’000**
37
79
_____________
_____________
37
79
**_____________**
**_____________**|
|---|---|
16
**JCA CHARITABLE FOUNDATION**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **5. GRANT PAYABLE**
|**Name of Recipient**||**Aggregate grant**|**Aggregate grant**|
|---|---|---|---|
|||**made in US$**|**made In US $**|
|||**2020**|**2019**|
|||**$**|**$**|
|Agricultural Research Organization||361,365|597,550|
|Akko Nautical School||22,700|-|
|A.M.I.R Foundation||19,500|10,500|
|Anne Frank Comprehensive School||4,400|-|
|Arava Development Company||25,000|-|
|Basmalh Association||-|22,800|
|Beit Siach Klil Foundation||25,000|-|
|Ben Gurion University of the Negev||-|25,000|
|Ben Hashitin Farm||24,200|-|
|BGU||70,965|-|
|Braude College / MOONA||25,000|-|
|Central & Northern Arava R&D||-|38,050|
|Central Arava R&D||1,900|50,000|
|Central Arava R.C||25,000|25,000|
|Central Zionist Archives||14,000|40,000|
|Chen HaNegrev Foundation||-|10,000|
|Clore Center||-|7,080|
|Davidson Institute||15,200|-|
|Dead Sea Arava Science Center (DSASC)||269,220|362,636|
|Derech Eretz||25,000|-|
|Desert Stars||37,000|85,000|
|Dror Educational Center||58,500|-|
|Dror Israel||146,600|-|
|Eilat-Eilot Renewable Energy||5,800|-|
|Eilot R.C||104,365|21,000|
|Ein Shemer Greenhouse||20,000|-|
|Erez College||20,000|12,500|
|Eshkol R.C||-|36,250|
|FIRST Israel||21,200|9,350|
|The Fund for Innovative Teaching (FIT)||-|10,000|
|Galil School (Misgav RC)||20,000||
|Gilat Research Center||1,600|1,430|
|Hebrew University (HUJI)||182,870|175,000|
|Hevel Eilot RC||20,000|-|
|Heznek||20,000|-|
|Hinneni Foundation||-|15,900|
|Independence Day Ceremony||20,000|-|
|Kinneret College||-|131,250|
|Kaima Hukuk Farm||10,000|-|
|Katif R&D||-|31,000|
|Keshet Elion||10,000|-|
|Kibbutz Ma;ale Gilboa||7,500|-|
|Kinneret College||90,000|-|
|Koacj Zvika||20,000|-|
|Koi Israel Haverim (KIH)||50,000|20,000|
|Ma’ale Yosef RC||36,300|-|
|Masada Research Centre||23,366|-|
|MATA Foundation||29,000|-|
|Matte Asher RC||40,000|-|
|Manor-Cabri Foundation||-|6,050|
|McCann Valley||17,000|-|
|Melach Ha’aretz||4,400|-|
|Migal Research Institute||37,400|269,045|
|Misgav RC||76,000|-|
|More Than Reality||20,000|-|
|||_____________|_____________|
||_Carried forward_|2,077,551|2,050,541|
17
**JCA CHARITABLE FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
|_Brought forward_
NCM - IOLR
Negav Highland Experience
Neta Rozenblat (Trumpeldor Film)
New Israel Guardians (NIG)
Nirim Youth Village & Foundation
Nitzana Educational Community
Nitzan NPO
Northern R&D
Northern & Central Arava R&D
ORT Braude College
Ramat Negev R.C
Sapir College
Sha’ar Hanegev High School
Sha’ar L’Adam
Southern Arava R&D
SPIHS
SPNI
Tapuach
Tech7 Juniors
Tel-Hai Academic College
Tikkun Center
Unique Projects
Upper Galilee R.C
Valley of Springs (Eden Farm)
Yad Mordechai Museum
Yeruham Science Center
Yesud HaMa’ala
Youth Villages for Advancement & Excellence
Total Grants in Sterling
Allocation of Support Costs
Allocation of Staff Costs
See note 3|2,077,551
_____________
62,000
10,000
-
51,800
-
11,000
-
46,902
15,000
20,000
24,000
-
-
-
26,300
64,000
50,000
20,000
-
60,000
-
1,600
-
10,000
-
-
9,500
15,850
_____________
**2,583,003**
**_____________**
**2020**
**£’000**
2,064
49
15
___________
2,128
|2,050,541
_____________
-
-
20,100
16,200
44,680
10,000
20,000
-
-
-
7,450
78,000
4,000
10,000
5,800
-
-
-
15,000
43,640
35,000
-
10,000
-
15,000
25,000
17,100
-
_____________
**2,463,511**
**_____________**
**2019**
**£’000**
1,969
89
14
___________
2,072
|
|---|---|---|
||**_**|**__**|
18
**JCA CHARITABLE FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
|**6.**
**SUPPORT COSTS**
Office, travel & sundry
Consultancy
Bank charges
Governance costs (note 7)
**7.**
**GOVERNANCE COSTS**
Auditor’s remuneration
- Audit
-
Other services
Legal and Professional|_
**_**|**2020**
**£’000**
2
20
2
29
__________
53
__________
**2020**
**£’000**
8
2
19
__________
29
**__________**|_
**_**|**2019**
**£’000**
7
14
2
73
__________
96|
|---|---|---|---|---|
|||||__________
**2019**
**£’000**
8
4
61
__________
73
**__________**|
## **8. COUNCIL’S AND KEY MANAGEMENT PERSONNEL REMUNERATION AND EXPENSES**
The Council did not receive any remuneration during the year (2019: £Nil). None of the Council members received reimbursed expenses during the year (2019: none).
The total amount of employee benefits received by key management personnel, who are employees, is £135k (2019 - £128k). The Foundation considers its key management personnel to comprise those individuals listed on page 1. The President is not an employee and did not receive any benefits. The Administrator is not an employee but is paid as a consultant.
|**9.**
**STAFF COSTS AND EMPLOYEE BENEFITS**
Wages and salaries
Pension costs|**2020**
**£’000**
176
34
_____________
210
|**2019**
**£’000**
168
33
_____________
201
|
|---|---|---|
The average number of employees by headcount during the year was 2 (2019: 2) this equated to a full time equivalent of (2019: 2). Also included in pension costs is the Canadian Pension.
One employee received remuneration between £120,000 and £130,000 during the year (2019: 1)
19
**JCA CHARITABLE FOUNDATION**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
|**10.**
**INVESTMENTS**
**Market Value**
At 1 January 2020
Additions
Disposals
Realised/Unrealised gains / (losses)
At 31 December 2020
**Historical cost**
**Investments with:**
Other – unlisted investments
Partners’ Capital|
|**2019**
**2020**
**(as restated)**
**£’000**
**£’000**
53,642
44,795
21,334
33,859
(23,039)
(35,797)
6,154
10,785
______________
______________
58,091
53,642
______________
______________
46,443
48,670
______________
______________
**2020**
**£’000**
**2019**
**£’000**
745
830
57,346
52,812
_____________
_____________
58,091
53,642
**_____________**
**_____________**|**2019**
**2020**
**(as restated)**
**£’000**
**£’000**
53,642
44,795
21,334
33,859
(23,039)
(35,797)
6,154
10,785
______________
______________
58,091
53,642
______________
______________
46,443
48,670
______________
______________
**2020**
**£’000**
**2019**
**£’000**
745
830
57,346
52,812
_____________
_____________
58,091
53,642
**_____________**
**_____________**|
|---|---|---|---|
||||______________
48,670|
||||______________
**2019**
**£’000**
830
52,812
_____________
53,642
**_____________**|
All investments are carried at their fair value. Investments in equities are all traded in quoted public markets. Holdings in common investment funds, unit trusts and open-ended investment 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 (that is their transaction value). Unlisted investments are included at cost less impairment.
Investments individually representing greater than 5% of the portfolio held are:
|Partners Capital Condor Fund IX
Partners Capital Greyhawk Fund
Partners Capital Phoenix Fund Lead series
The Master Portfolio C Ltd
**11.**
**DEBTORS**
Other debtors
|**2020**
**£’000**
2,987
3,731
5,357
29,333
_______________
**2020**
**£’000**
152
_______________
__
152
|**2019**
**£’000**
2,413
3,054
5,357
31,465
______________
**2019**
**£’000**
436
_____________
436
|
|---|---|---|
Included in other debtors is one loan totalling £55k (2019 – 2 loans totalling £264k) which is repayable at the earlier of when the borrower wishes to repay the loan or when the Borrower is paid in consideration for the sale of its shares in Algatechnologies. Interest is payable at a rate of 4% per annum.
## **12. CREDITORS: Amounts falling due within one year**
|**CREDITORS: Amounts falling due within one year**
Accruals|**2020**
**£’000**
16
_______________
16
_______________|**2019**
**£’000**
38
_______________
38
_______________|
|---|---|---|
20
**JCA CHARITABLE FOUNDATION**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
|**13.**
**PROVISION FOR LIABILITIES AND CHARGES**
Pensions and similar obligations
**14.**
**UNRESTRICTED FUNDS**
**As at 1 January**
**2020**
**New Designation**
**£’000**
**£’000**
**Designated funds**
Investment funds
15,000
-
___________
_____________
**As at 1 January**
**2020**
**Surplus for**
**the year**
**£’000**
**£’000**
**Unrestricted funds**
Share capital
2,000
-
General unrestricted fund
13,312
3,953
_______________
_______________
15,312
3,953
_______________
_______________
**COMPARATIVE**
**UNRESTRICTED FUNDS**
**As at 1 January**
**2019**
**£’000**
**New**
**Designation**
**£’000**
**Designated funds**
Investment funds
15,000
-
_______________
_______________
**As at 1 January**
**2019**
**£’000**
**Surplus for**
**the year**
**£’000**
**Unrestricted funds**
Share capital
2,000
-
General unrestricted fund
4,470
8,842
_______________
_______________
6,470
8,842
|**2020**
**2019**
**£’000**
**£’000**
85
85
_______________
_______________
85
85
_______________
_______________
**Designation**
**Released**
**As at 31**
**December 2020**
**£’000**
**£’000**
-
15,000
_____________
___________
**Transfers**
**As at 31**
**December 2020**
**£’000**
**£’000**
(2,000)
-
2,000
19,265
_______________
_______________
-
19,265
_______________
_______________
**Designation**
**released**
**£’000**
**As at 31**
**December 2019**
**£’000**
-
15,000
_______________
_______________
**Transfers**
**£’000**
**As at 31**
**December 2019**
**£’000**
-
2,000
-
13,312
_______________
_______________
-
15,312
|
|---|---|
Designated funds have been set aside by the members for specific purposes. Investment funds - to enable the Charity to continue to generate income.
On 25 September 2020 the company converted to a CIO. None of the share capital was repaid and the funds have been retained in the CIO general unrestricted fund. (2019: The authorised share capital was £2,000,000 as divided into 20,000 paid up shares of £100 each.)
21
**JCA CHARITABLE FOUNDATION**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **15. ENDOWMENT FUND**
|**As at 1 January**
**2020**
**£’000**
Permanent Endowment:
La Baronne de Hirsch
bequest
1
Expendable Endowment:
Le Baron de Hirsch
23,884
___________
23,885
___________
The endowment funds are invested in quoted shares.|**Income**
**£’000**
-
-
_____________
-
_____________|**Expenditure**
**As at 31**
**December 2020**
**£’000**
**£’000**
-
1
-
23,884
_____________
___________
-
23,885
_____________
___________|
|---|---|---|
## **15. ENDOWMENT FUND (cont)**
|**Comparative endowment**
**fund**
**As at 1 January**
**2019**
**£’000**
Permanent Endowment:
La Baronne de Hirsch
bequest
1
Expendable Endowment:
Le Baron de Hirsch
23,884
___________
23,885
___________
The endowment funds are invested in quoted shares.
**ANALYSIS OF NET ASSETS BETWEEN FUNDS**
Investments
Net current assets
Long term liabilities
Total|**Income**
**£’000**
-
-
_____________
-
_____________
**Unrestricted**
**funds**
**2020**
**£’000**
34,206
144
(85)
___________
34,265|**Expenditure**
**As at 31**
**December 2019**
**£’000**
**£’000**
-
1
-
23,884
_____________
___________
-
23,885
_____________
___________
**Endowment**
**funds**
**2020**
**Total**
**Funds**
**2020**
**£’000**
**£’000**
23,885
58,091
-
144
-
(85)
___________
___________
23,885
58,150|
|---|---|---|
**16. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
22
**JCA CHARITABLE FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
|**Comparative analysis of net assets between funds**
**Unrestricted**
**funds**
**2019**
**Endowment**
**funds**
**2019**
**£’000**
**£’000**
Investments
29,757
23,885
Net current assets
640
-
Long term liabilities
(85)
-
___________
___________
Total
30,312
23,885
|**Total**
**funds**
**2019**
**£’000**
53,642
640
(85)
___________
54,197
|
|---|---|
## **17. RELATED PARTY TRANSACTIONS**
There are no related party transactions during the year.
## **18. RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES**
|Net income/(expenditure) for the year
Dividends received
Net gains on investments
Decrease / (Increase) in debtors
(Decrease) / Increase in creditors
Net cash flow from operating activities|**2020**
**(As**
**£’000**
3,953
(86)
(6,154)
77
(22)
___________
(2,232)
**___________**|**2019**
**restated)**
**£’000**
8,842
(357)
(10,785)
(119)
27
___________
(2,392)
**___________**|
|---|---|---|
## **19. POST BALANCE SHEET EVENT**
The Council Members have assessed the operational and financial impact of post balance sheet events and Covid-19 on the charity as set out in Council Member’s Report on page 5 and in the going concern statement at note 1.10.
23
**JCA CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **20. PRIOR YEAR ADJUSTMENT**
The accounts are restated to incorporate the impact of a misclassification of investment manager fees as unrealised gains on investments in the year ended 31 December 2019.
The change did not impact the reserves or movement in funds at 31 December 2019 but resulted in increasing the net expenditure before gains and losses on investments by £77k.
The Prior Year Adjustment had the following impact on the Statement of Financial Activities and the Investment note. There were no changes to reserves or the result for the year
|**Statement of Financial Activities**
As previously stated
Prior Year Adjustment
Restated at 31 December 2019
**Note 10 – Investments**
As previously stated
Prior Year Adjustment
Restated at 31 December 2019|**Expenditure**
**£’000**
2,279
77
2,356
**Disposals**
**£’000**
(35,720)
(77)
(35,797)|**Unrealised gain**
**£’000**
10,708
77|
|---|---|---|
|||10,785|
|||**Unrealised gain**
**£’000**
10,708
77|
|||10,785|
24