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2021-12-31-accounts

Charity number: 236852

John Laing Charitable Trust

Report and financial statements For the year ended 31 December 2021

33 Bunn’s Lane, London NW7 2DX

John Laing Charitable Trust

Contents

For the year ended 31 December 2021

Reference and administrative information ...................................................................................... 1 Trustees’ annual report .................................................................................................................. 2 Independent auditor’s report ....................................................................................................... 13 Statement of financial activities ..................................................................................................... 17 Balance sheet ............................................................................................................................... 18 Statement of cash flows ................................................................................................................ 19 Notes to the financial statements ................................................................................................. 20

John Laing Charitable Trust

Reference and administrative information

For the year ended 31 December 2021

Charity number 236852
Country of England & Wales
registration
Registered office 33 Bunn’s Lane
and operational London
address NW7 2DX
Trustees Sir John Martin K Laing Chairman
Christopher M Laing
Lynette G Krige
Christopher B Waples
Alexandra C B J Gregory
Stewart C K Laing
Timothy G Foster
Clare Underwood (Appointed 29thMarch 2021, resigned 28th
February 2022)
Key management Jennifer Impey Trust Director (resigned 30thApril 2021)
personnel Helen Parker Trust Director (appointed 19thApril 2021)
Bankers HSBC Bank plc
101-103 Station Road
Edgware
Middlesex
HA8 7JJ
Investment Charles Stanley
Manager 55 Bishopsgate
London
EC2N 3AS
Solicitors Linklaters
One Silk Street
London
EC2Y 8HQ
Auditor Sayer Vincent LLP
Chartered Accountants and Statutory Auditor
Invicta House
108-114 Golden Lane
London
EC1Y 0TL

1

John Laing Charitable Trust

Trustees’ annual report

For the year ended 31 December 2021

The Trustees present their report and the audited financial statements for the year ended 31 December 2021.

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association, the requirements of a directors’ report as required under company law, and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Objectives and activities

The Trustees review the aims, objectives and activities of the Trust each year. This report looks at what the Trust has achieved and the outcomes of its work in the reporting period. The Trustees report the success of each key activity and the benefits the Trust has brought to those groups of people that it helps. The review also helps the Trustees ensure the Trust's aims, objectives and activities remained focused on its stated purpose.

Purpose and aims

The John Laing Charitable Trust exists to provide for hardship to qualifying former and existing staff and to make grants for the benefit of the public as shall be exclusively charitable. The Trustees, from time to time, may determine the Trust purpose and aims in their absolute discretion and with regard to the guidance published by the Charity Commission under section 4 of the Charities Act 2011.

Through grant-making, the Trust aims to improve the quality of life of its beneficiaries. The Trustees completed their review of the Trust’s strategy in 2019. The agreed strategy and objectives aim to achieve the Trust’s:

Mission

‘To care for the welfare of existing and former employees of John Laing and to work with others in the community to improve the lives of those in need.’

Core Values

Community: We believe in encouraging initiatives by those living and working in the community to strengthen their communities by enabling and supporting those in need.

Opportunity: We believe that all people should have the opportunity to develop their full potential and contribute to society.

Compassion: We recognise the Christian values of our founder in addressing the suffering and misfortune of others.

2

John Laing Charitable Trust

Trustees’ annual report

For the year ended 31 December 2021

Social Responsibility: We embrace the ethics of social responsibility in all of our activities, respecting the welfare of individuals, communities and the environment.

The principal activities of the Trust

Welfare: In recognition of the Trust Deed, the Trustees consider that the welfare of former and current employees of the Company should be the first priority of the Trust. This is managed through a dedicated team of Welfare Officers who carry out planned, targeted and prioritised visits firstly to those previously identified as being in financial need, secondly to those former employees that are over 75 years of age, and thirdly, where time permits to more general visits to pensioners. Where applicable, Welfare Officers may recommend financial assistance. Hardship payments are also available to existing staff and applications are assessed by the Trust Director.

Grant-making: The Trustees in their discretion make grants to charitable organisations and have currently placed a priority on the concerns of homelessness, disadvantaged youth, education and the regeneration of communities including organisations which address concerns relating to the elderly. The Trustees will adapt its grant-making to be able to respond to emergencies arising from natural disasters, a pandemic or other crisis.

The Trust also supports the charitable activities of John Laing (the “Company”) including its engagement in the communities where the Company operates both in the United Kingdom and overseas. The Trust also supports a number of the Company’s annual staff initiatives by way of matching their fundraising efforts (the “Staff Matching” scheme) up to the value of £1,500 per individual event; making a £1,000 grant to charitable or not for profit organisations where staff and/or their immediate family are actively involved in (the “Make a Difference” scheme); donations to chosen charitable organisations nominated by staff who are being recognised for their long service and exemplar contribution to the Company.

Structure, governance and management

The John Laing Charitable Trust (the “Trust”) is governed by the Deed of the Trust dated 21 December 1962 as modified by a number of supplemental deeds (the “Deeds”). The Trust was set up by John Laing Limited (the “Company”). The Trust was later combined with the Laing Benevolent Fund (the “Fund”) which had been set up in 1932 by Sir John Laing in order to provide for hardship to staff who had done valuable work for the Company and served considerable time.

The Company originally covenanted to make payments to the Trust of £10,000 per year for a period of seven years.

The Trust Deed empowers the Trustees to appoint investment advisers who have discretion to invest the funds of the Trust within guidelines established by the Trustees. The income received from these investments is utilised to fund the Trust’s welfare payments and its charitable work as a grant-making charity.

3

John Laing Charitable Trust

Trustees’ annual report

For the year ended 31 December 2021

Governance

The Board has strengthened its governance through the formation of Investment and Finance Committee and Resource Committee. The Board has delegated responsibilities to these committees to undertake activity within its terms of reference and to make necessary recommendations to the Board.

Appointment of Trustees

The power to appoint new Trustees was initially fully vested in the Company, which was instrumental in setting up the Trust. The Company gave up this entitlement in December 2015, only retaining their right to appoint two (“Company Trustees”) of the maximum eight Trustees with the remaining six (“non-Company Trustees”) to be appointed by the Trustees. Trustees are recruited for their experience, empathy and knowledge of the Trust and its values and to balance the skills and composition of the trustee body.

Trustee induction and training

On their appointment, new Trustees are given an induction by the Trust Director which includes a welcome pack containing the history of the Trust, a copy of the Trust Deed as well as minutes of the previous year’s Trustees meetings and the latest published accounts and budget for the current year. If required Trustees can attend courses to familiarise themselves with the Charity Commission’s Essential Trustee guidance.

Related parties and relationships with other organisations

The Trustees are responsible for the general control and governance of the Trust. The Trustees give their time freely and receive no remuneration or other financial benefits. Details of the Trustee expenses and related party transactions are disclosed in note 7 to the accounts. Trustees are required to disclose all relevant interests and register them with the Board of Trustees and in accordance with the Trust’s policy do not participate in decisions where a conflict of interest arises.

Day-to-day operation of the Trust

The Trustees delegate the day-to-day management and operation of the Trust to the Trust Director. The Trust Director, together with the Office Manager, Publishing and Communications Manager and 8 members of the Welfare Team are directly employed by the Trust. The pay of the senior staff is reviewed annually.

4

John Laing Charitable Trust

Trustees’ annual report

For the year ended 31 December 2021

Learning and Development

The Trust aims to develop its people through provision of learning activities so that they are equipped to pursue the Trust’s purpose and to help inform Trustees in their decisions making. During the year:

Strategic Priorities for grant-making

Community

Our strategic aim is to support organisations that promote integration in the community and help tackle poverty with particular regard to loneliness and isolation, discrimination, disability and mental health issues.

Disadvantaged Youth

Our strategic aim is to support charities and initiatives that are proven to break the cycle of disadvantage for young people, and contribute to the path of increased opportunities, employability, employment, and independence; and

To provide grant funding to organisations that demonstrate success in addressing inequality of opportunity for young people who are disadvantaged due to marginalisation or poverty; abuse or neglect; mental illness; and physical and learning disability.

Education

Our strategic aim is to provide grant funding to organisations that can improve the life chances of disadvantaged young people and support the education and development of essential life skills and employment in areas of deprivation.

Homelessness

Our strategic aim is to support and learn from organisations that provide holistic solutions for homeless individuals and to promote innovative models for long term accommodation.

5

John Laing Charitable Trust

Trustees’ annual report

For the year ended 31 December 2021

Public Benefit

The Trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives that have been set.

Achievements and performance

The Trust’s main activities and beneficiaries are described below. All its charitable activities are undertaken to further John Laing Charitable Trust’s charitable purposes for the public benefit and to achieve the Trust’s strategic objectives.

Welfare: The following were achieved in the year

The Trust also supports a network of nine John Laing Retirement Clubs across the country with funding. These Clubs are independent from the Trust and managed by volunteer members of each Club. These thriving clubs organise various social events and outings where former colleagues and friends can get together. These services are valued by pensioners, club members and their families. They provide assistance in tackling the effects of isolation and loneliness.

Charitable Giving: Trustees aim to make grants which respond directly to the priorities identified by our charity partners which are aligned to the strategic priorities of the Trust. They consider the appropriateness of each application and award grants based on their merits. During the year, the Trustees awarded major grants in support of work streams which will help achieve their strategic aims:-

6

John Laing Charitable Trust

Trustees’ annual report

For the year ended 31 December 2021

➢ Increased mental health issues in young people. PACE £25,000 Safeguarding of Children by helping families National Working Group £31,000 Tackling Child Exploitation in a Global Pandemic and Beyond Ormiston Families £70,000 Breaking Barriers Service – Norfolk and Essex Clockwork £10,000 1:1 counselling for young people

7

John Laing Charitable Trust

Trustees’ annual report

For the year ended 31 December 2021

DePaul UK £10,000 Money management programme

Financial review

The Trustees aim to finance grant and operational needs out of investment income. Funding targets are set based on the anticipated income from the investment portfolio and may be adjusted to take into account circumstances surrounding the changing needs of our beneficiaries and the sector. The Trustees continue to achieve the objectives of the Trust by careful management of the endowment in prevailing markets in order to preserve the long-term value of the investments in real terms as well as maximising the income the portfolio can generate for disbursement.

£’000 31 December 2021 31 December 2020
Income from:
Investments 2,295 1,844
Other 6 25
Total income 2,301 1,869

Income was generated from interest and dividends received from the portfolio of investments.

Funds increased in the year from £64.4m to £72.5m (2020: funds decreased from £69m to £64.4m) because of a £8.1m net movement (2020: -£2.6m) which includes a £7.9m net gain on investments (2020: £2.6m loss on investments).

The Trustees seek to optimise performance through a diversified asset portfolio applying a medium high-risk strategy. Out of £70.2 million of assets, £63.6 million of the Trust’s portfolio is managed by Charles Stanley & Co Limited (“Charles Stanley”) against a range of indicators and benchmarks deemed satisfactory by the Trustees. Investments are made under the constraints placed by the Trustees as described in the Investment Policy.

8

John Laing Charitable Trust

Trustees’ annual report

For the year ended 31 December 2021

The investment portfolio increased in value following the market reaction to the coronavirus pandemic outbreak in March 2020, but the positive news of vaccine improved outlook and saw improvements in market and stock values in 2021. The portfolio managed by Charles Stanley ended the year with an increase in value of £7,977,000.

The rest of the assets are monitored directly by the Trustees and relate to investments in Diversified Property Fund for Charities (“DPFC”) which had proven resilient in the year, with its value closing at £6.6 million, reporting a £932,000 gain in the period. Income of £417,000 for the year is attributable to investments in DPFC.

Investment Policy

The Trust retains the services of Charles Stanley who operate within the agreed discretionary investment mandate established and reviewed by the Investment and Finance Committee. Investment in DPFC is made through the trustees’ powers contained in the Deeds, to invest as if they were the beneficial owners of the Trust property.

During 2021 the Trust’s Investment Policy Statement was reviewed and agreed with Charles Stanley. The strategy indicates a medium to high level of risk and the following ethical parameters. Any investments made on behalf of the Charity must comply with the following restrictions:

The investment policy of the Trustees is to produce the best financial return with an acceptable level of risk, in responsible companies. The portfolio is to be managed and reported on a total return basis. The investment policy of the Trustees is to achieve medium-term growth of capital, from the portfolio. The assets should be managed to at least maintain the real capital value of the portfolio, whilst generating a sustainable level of income to support the various charitable activities.

Principal risks and uncertainties

Trustees are responsible for monitoring the risks facing the Trust and ensuring arrangements to manage these risks are reviewed regularly. The risk management process involves identifying potential risks, the likelihood of these risks arising and severity of their impact, as well as reviewing the measures taken to mitigate against them. The principal risks facing the Trust are:-

9

John Laing Charitable Trust

Trustees’ annual report

For the year ended 31 December 2021

Reserves policy and going concern

The Trust does not run a specific Reserves Policy. The Trustees manage the assets of the Trust as “expendable endowment” to provide income from which to make grants. The whole endowment therefore is available to act as reserves.

The Trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern. The Trustees feel that this will not be impacted by COVID going forward.

Fundraising

The Trust does not engage in public fundraising and does not use professional fundraisers or commercial participators. The Trust nevertheless observes and complies with the relevant fundraising regulations and codes. During the year there was no non-compliance of these regulations and codes and the Trust received no complaints relating to its fundraising practice.

Plans for the future

The Trustees have no immediate plans to change the activities of the Trust. The provision of welfare service adapts to the changing needs of the ageing population of pensioners in need of assistance. Over time, their number is expected to decline and as they do so, the balance of charitable donations will increase compared to the expenditure on welfare services. The impact of this change on resources will be reviewed regularly. There will be continued review of grant making policy as well as impact measurement and reporting to ensure grants are making a real difference. Trustees will seek opportunities to achieve a multiplier effect to the grants they award whether as a leverage to attract other funders or to form partnerships with them.

10

John Laing Charitable Trust

Trustees’ annual report

For the year ended 31 December 2021

During the year, the Trustees have considered the impact of COVID-19 on the Trust:-

Statement of responsibilities of the Trustees

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 period and of its financial position at the end of the period. In preparing financial statements giving a true and fair view, the Trustees should follow best practice and:

11

John Laing Charitable Trust

Trustees’ annual report

For the year ended 31 December 2021

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. 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.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Auditor

Sayer Vincent LLP were re-appointed as the auditor during the year.

The Trustees’ annual report has been approved by the Trustees on 5 July 2022 and signed on their behalf by

Christopher B Waples Trustee

12

Independent auditor’s report

To the members of

John Laing Charitable Trust

Opinion

We have audited the financial statements of John Laing Charitable Trust (the ‘charity’) for the year ended 31 December 2021 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We 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 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 John Laing Charitable Trust’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.

13

Independent auditor’s report

To the members of

John Laing Charitable Trust

Other Information

The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

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:

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

14

Independent auditor’s report

To the members of

John Laing Charitable Trust

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 regulations made under section 154 of that Act.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

15

Independent auditor’s report

To the members of

John Laing Charitable Trust

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 is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity's trustees as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. 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 auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

13 July 2022 Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006

16

John Laing Charitable Trust

Statement of financial activities

For the year ended 31 December 2021

Note
Income from:
Investments
2
Other
Total income
Expenditure on:
Raising funds
Charitable activities
Grants
3a
Welfare and related costs
3a
Total expenditure
Net income / expenditure before net gains / (losses) on investments
4
Net gains / (losses) on investments
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 2021
Total
£'000
2,295
6
2,301
(147)
(1,164)
(875)
(2,186)
115
7,977
8,092
64,391
72,483		 2020
Total
£'000
1,844
25
1,869
(133)
(2,801)
(1,015)
(3,949)
(2,080)
(2,584)
(4,664)
69,055
64,391

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 14a to the financial statements.

All funds are unrestricted.

17

John Laing Charitable Trust

Statement of cash flow

For the year ended 31 December 2021

Note
Fixed assets:
Freehold property
9
Investments
10
Current
assets:
Debtors
11
Short term deposits
Cash in bank and on call
Creditors: amounts falling due within one year
12
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after one year
The funds of the charity:
14
Unrestricted income funds:
General funds
Total unrestricted
funds
Total charity funds
Approved by the trustees on 5 July 2022 and
signed on their behalf by		 £'000
245
-
2,671
2,916
(666)
72,483		 2021
£'000
24
70,225
70,249
2,250
72,499
(16)
72,483
72,483
-
72,483		 £'000
170
1,196
1,557
2,923
(837)
64,391		 2020
£'000
24
62,340
62,364
2,086
64,450
(59)
64,391
64,391
64,391

Christopher B Waples

18

John Laing Charitable Trust

Notes to the financial statements

For the year ended 31 December 2021

Cash flows from operating activities
Net (expenditure) / income for the reporting
period
(as per the statement of financial activities)
(Gains) / losses on investments
Dividends, interest and rent from
investments
(Increase)/Decrease in debtors
Decrease in creditors
Cash flows from investing activities:
Dividends, interest and rents from
investments
Proceeds from sale of investments
(Increase) / decrease in cash held with
investment manager
Transfer of cash into short term deposit
Transfer of cash from short term deposit
Purchase of investments
Net cash provided by investing activities
Change in cash and cash equivalents in the
year
Cash and cash equivalents at the beginning
of the year
Cash and cash equivalents at the end of the
year		 2021
£'000
£'000
8,092
(7,977)
(2,295)
(75)
(214)
(2,469)
2,295
3,436
(2,779)
-
1,196
(565)
3,583
1,114
1,557
2,671		 2020
£'000
£'000
(4,664)
2,584
(1,844)
19
(650)
(4,555)
1,844
4,238
1,731
(1,196)
-
(1,502)
5,115
560
997
1,557		 2020
£'000
£'000
(4,664)
2,584
(1,844)
19
(650)
(4,555)
1,844
4,238
1,731
(1,196)
-
(1,502)
5,115
560
997
1,557
560
997
1,557

19

John Laing Charitable Trust

Notes to the financial statements

For the year ended 31 December 2021

The registered office address is 33 Bunns Lane, London, NW7 2DX.

b) Basis of preparation

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 and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

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 Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

The charity meets the definition of a public benefit entity under FRS 102.

d) Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

The Trustees do not consider that there are any 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 reporting period.

20

John Laing Charitable Trust

Notes to the financial statements

For the year ended 31 December 2021

1 Accounting policies (continued)

d) Going concern (continued)

The Trustees are satisfied that the Trust has sufficient unrestricted funds to continue as a going concern for the foreseeable future. Cashflow forecast are regularly prepared and in addition to cash, liquidity within investments portfolio means assets can be readily realised to meet any short term requirements. The pandemic has tested the investments portfolio and had proven resilient. The Trustees acknowledge that the full impact of the pandemic is still to be seen and the emerging risks are being monitored but Trustees are satisfied that Trust's capability to continue as a going concern will not be affected.

e) Income

Income on deposits has been accounted for on an accruals basis. All other investment income has been taken into account on the basis of due date for payment. Foreign income is translated into sterling at the rate ruling at the date of the transaction.

f) Interest receivable

g) Fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

h) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation (where a commitment has been communicated to the recipient) to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

21

John Laing Charitable Trust

Notes to the financial statements

For the year ended 31 December 2021

1 Accounting policies (continued)

i) Grants payable

Grants payable are payments made to third parties in furtherance of the charitable objectives of the charity. Single or multi-year grants are recognised when, following Board approval, the recipient receives the conditional offer of the grant. This is the case unless it cannot be determined with certainty that the recipient will meet these conditions. If at the balance sheet date it is known that any grant liability will not be fully claimed, the liability is corrected to reflect the true extent of the likely claim.

j) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, salaries are based on staff time and overheads are based on the split of non support expenditure, of the amount attributable to each activity.

Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

k) Fixed assets

Items of equipment are capitalised where the purchase price exceeds £3,000. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows: Fixtures and fittings 3 years

IT and communications equipment 3 years

l) Freehold property

Freehold property is included in the balance sheet at historic cost. The property is not depreciated as the carrying value is less than recoverable amount. Impairment reviews will be conducted on an annual basis by the Trust to ensure the cost recognised on the balance sheet remains appropriate.

22

John Laing Charitable Trust

Notes to the financial statements

For the year ended 31 December 2021

1 Accounting policies (continued)

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Any change in fair value will be recognised in the statement of financial activities. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/(losses) on investments” in the statement of financial activities. The charity does not acquire put options, derivatives or other complex financial instruments.

n) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Short term deposits include cash balances that are invested in accounts with a maturity date of between 3 and 12 months.

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

q) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

r) Pensions

The Trust operates a defined contribution pension scheme with Legal and General. The pension cost charge represents contributions payable under the scheme by the Trust to the fund. The Trust has no liability under the scheme other than for the payment of those contributions.

23

John Laing Charitable Trust

Notes to the financial statements

For the year ended 31 December 2021

2 Income from investments

Income from investments
Listed Investments, including unit trusts
UK
Overseas
Unlisted
UK		 2021
Total
£'000
1,760
118
417
2,295		 2020
Total
£'000
1,365
157
322
1,844

3a Charitable activities - Grant making (current year)

Grants
Welfare payments to individuals
Retirement Clubs
At the end of the year		 Grants to
institutions
£'000
948
-
-
948		 Grants to
individuals
£'000
-
474
51
525		 Support
costs
£'000
216
278
72
566		 2021
£'000
1,164
752
123
2,039

The total grants paid and accrued to institutions and individuals for the year were £1,147,308 (2020: £3,193,000).

24

John Laing Charitable Trust

Notes to the financial statements

For the year ended 31 December 2021

3b Charitable activities-Grant making (prior year)

Grants
Welfare payments to individuals
Retirement Clubs
At the end of the year		 Grants to
institutions
£'000
2,552
-
-
2,552		 Grants to
individuals
£'000
-
640
44
684		 Support
costs
£'000
249
331
-
580		 2020
£'000
2,801
971
44
3,816

The Trust support causes concerning the needs under their four key priority areas of Community, Disadvantaged Youth, Education and Homelessness. Further information on grants awarded by size can be found by visiting the Trust's website: johnlaingcharitabletrust.com.

4 Net expenditure before net (losses) / gains on investments

This is stated after charging:

This is stated after charging:
2021 2020
£'000 £'000
Trustee professional indemnity insurance 1 1
Trustees' meeting and travel and subsistence expenses 1 -
Auditor's remuneration (excluding VAT):
Audit 8 8

25

John Laing Charitable Trust

Notes to the financial statements

For the year ended 31 December 2021

5 Analysis of staff costs and the cost of key management personnel

Staff costs were as follows:

Staff costs were as follows:
Salaries and wages
Social security costs
Employer’s contribution to defined contribution pension schemes		 2021
£'000
328
31
64
423		 2020
£'000
346
34
70
450

The following number of employees received employee emoluments (excluding employer pension costs and employer's national insurance) during the year between:

2021 2020
No. No.
£60,000 - £69,999 1 -
£100,000 - £109,999 - 1

The total employee emoluments (including pension contributions and employer's national insurance) of the key management personnel were £142,619 (2020: £129,849).

6 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was 12.25 (2020: 11.04).

26

John Laing Charitable Trust

Notes to the financial statements

For the year ended 31 December 2021

7 Related party transactions

Sir Martin Laing is on the Council of Atlantic College which is purely advisory. The Trust does not consider Atlantic College to be a related party as Sir Martin Laing does not play a role which participates in the governance of the College and therefore is able to participate in decisions relating to the College. During the year, the Trust paid a grant of £33,500 (2020: £32,000) to Atlantic College towards student bursary fees.

Christopher Laing is the Chairman of Eskmuir Properties Limited (EPL) and Sir Martin Laing stepped down as a Director of EPL on 18 January 2022. EPL is the parent company of Eskmuir Fund Management Limited and Eskmuir Asset Management Limited who are respectively, the Fund Manager and Asset Manager of the Diversified Property Fund for Charities (DPFC). Sir Martin and Christopher Laing are excluded from all discussions relating to investments in DPFC units. There were no DPFC transactions during the year (2020: nil).

Christopher Laing declared that he is a Patron and founder of the National Emergencies Trust NET. During the year, the Trustees made donations to the NET, in response to the COVID-19 appeal of £nil (2020: £850,000).

The charity Trustees were neither paid nor received any other benefits from employment with the charity in the year (2020: £nil). No charity Trustee received payment for professional or other services supplied to the charity (2020: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £664 (2020: £257) incurred by two (2020: two) members relating to attendance at meetings of the Trustees.

The annual summer luncheon for all nine Retirement Clubs formed for retired John Laing employees are supported by the Trustees. Due to the coronavirus pandemic, the event did not take place in 2020 and 2021. The costs associated to Trustees' attendance at these events amounted to £nil (2020: £nil). Deposits made to secure the venue costing £1,850 (2020: £1,850) had been recorded in the accounts under Other Debtors.

The annual Laing Retirement Clubs Summer Luncheon is supported by members of the Laing family and the Laing Family Trusts. As the event was cancelled in 2021, there were £nil contributions received during the year (2020: £nil).

There were no related party transactions other than those listed above.

8 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

27

John Laing Charitable Trust

Notes to the financial statements

For the year ended 31 December 2021

9 Fixed assets

The freehold property of held on the balance sheet consists of a Caldew House - a property that is leased to Gateshead Carers who use it as a holiday home for carers and cared for people. The custodianship was transferred to the Charity Commission in March 2004. This is held at cost in the accounts

10 Listed investments

Listed investments
Fair value at the start of the year
Additions at cost
Disposal proceeds
Net gain / (loss) on change in fair value
Cash movement in the year		 2021
£'000
62,340
565
(3,436)
7,977
2,779
70,225		 2020
£'000
69,391
1,502
(4,238)
(2,584)
(1,731)
62,340

Investments comprise:

Investments comprise:
Global Fixed interest
UK equities
Overseas and other Equities
Unlisted
Cash		 2021
£'000
6,248
34,426
19,716
6,655
3,180
70,225		 2020
£'000
7,218
31,980
17,019
5,722
401
62,340

Material Investments

At the end of the year, the Trust's investment in Diversified Portfolio for Charities ("DPFC") was valued at £6.7 million representing 9.5% of the total assets. (2020: £5.7 million representing 9.2%). The total value of all investments had reduced to £69m as at 30/04/22 partly as a result of the effect on the global downturn in markets following the outbreak of the conflict in Ukraine.

28

John Laing Charitable Trust

Notes to the financial statements

For the year ended 31 December 2021

11
Debtors
Investment debtors
Other debtors
12
Creditors: amounts falling due within one year
Grants payable (note 13)
Other creditors
Creditors: amounts falling due after one year
Grants payable (note 13)		 2021
£'000
243
2
245
2021
£'000
598
68
666
2021
£'000
16
16		 2020
£'000
168
2
170
2020
£'000
720
117
837
2020
£'000
59
59

29

John Laing Charitable Trust

Notes to the financial statements

For the year ended 31 December 2021

13 Grants Payable

Grants Payable
Balance at the beginning of the year
Grants awarded in the year
Grants paid during the year
Grants cancelled during the year
Balance at the end of the year		 2021
£'000
779
948
(1,113)
-
614		 2020
£'000
1,518
2,581
(3,292)
(28)
779

The grants payable include capital grant made to Groundwork East of £480,000, all of which may be called to be released within one year subject to conditions of the grant being satisfied.

14a Movements in funds (current year)

Movements in funds (current year) ear)
At 1
January
2021
£'000
Unrestricted funds:
General funds
64,391
Total unrestricted funds
64,391
Movements in funds (prior year)
At 1
January
2020
£'000
Unrestricted funds:
General funds
69,055
Total unrestricted funds
69,055		 At 1
January
2021
£'000
64,391


Income &
gains

£'000

10,279

10,279
Income &
gains
£'000
1,869
1,869		 Income &
gains
£'000
10,279		 Expenditure
& losses
£'000
(2,187)
(2,187)
Expenditure
& losses
£'000
(6,533)
(6,533)		 Expenditure
& losses
£'000
(2,187)		 Transfers
£'000
-
-
Transfers
£'000
-
-		 At 31
December
2021
£'000
72,483
64,391 10,279 (2,187) 72,483
At 31
December
2020
£'000
64,391
64,391

14b Movements in funds (prior year)

30