Charity number: 247498 

## **THE JRSST CHARITABLE TRUST** 

**TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** 



## **THE JRSST CHARITABLE TRUST** 

## CONTENTS 

||Page|
|---|---|
|**Reference and administrative details of the charity, its Trustees and advisers**|1|
|**Trustees' report**|2 - 6|
|**Independent auditor's report on the financial statements**|7 - 10|
|**Statement of financial activities**|11|
|**Balance sheet**|12|
|**Notes to the financial statements**|13 - 24|





## **THE JRSST CHARITABLE TRUST** 

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS _FOR THE YEAR ENDED 31 DECEMBER 2021_ 

|**Trustees**|Andrew C Neal,Chair|
|---|---|
||Roger Clarke|
||Christopher Carman|
||Jessica Garland(appointed 25 June 2021)|
||Alison R Goldsworthy|
||Elizabeth Knight-Yamamoto|
||Lisa Smart|
||Benjamin Whittaker(appointed 25 June 2021)|
|**Charity registered number**<br>247498<br>**Principal office**<br>The Garden House<br>Water End<br>York<br>North Yorkshire<br>YO30 6WQ<br>**Secretary**<br>Elizabeth F Elsworth<br>**Chief executive officer**<br>Fiona Weir<br>**Independent auditor**<br>BHP LLP<br>Rievaulx House<br>1 St Mary's Court<br>Blossom Street<br>York, YO24 1AH<br>**Bankers**<br>Unity Trust Bank Plc<br>Nine Brindleyplace<br>Birmingham, B1 2HB<br>**Legal**<br>Stone King<br>Boundary House<br>91 Charterhouse St<br>Clerkenwell<br>London<br>EC1M 6HR<br>**Investment Advisors**<br>Rathbone Greenbank<br>10 Queen Square<br>Bristol<br>B1 2HB||



Page 1 



## **THE JRSST CHARITABLE TRUST** 

## TRUSTEES' REPORT 

_FOR THE YEAR ENDED 31 DECEMBER 2021_ 

The Trustees present their report and the audited financial statements for the JRSST Charitable Trust for the year ended 31 December 2021. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS102) 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 and Republic of Ireland published October 2019. 

## _**Objectives and activities**_ 

## **a. Policies and objectives** 

The Trustees can confirm that they have given due consideration to general guidance published by the Charity Commission relating to public benefit and in particular to its supplementary public benefit guidance in setting the objectives and planning the activities of the organisation. 

Trustees believe that they can best further the Trust's charitable purposes for the public benefit by continuing to undertake or support work which relates specifically to supporting the advancement of understanding of democracy, rights and social justice including participation in our democratic system as a means of ensuring power can be more equally shared. Our work contributes to deepening understanding of how democracy can be reformed and advancing citizenship by working to ensure that UK citizens, including the most marginalised, are informed and engaged. Focused on underlying causes, we build an evidence base for new solutions to old problems through the development of “forwardlooking policy” as described by Joseph Rowntree in his 1919 memorandum, supporting research, education and awareness. 

Operating in line with the values of our founder, Joseph Rowntree, the Charitable Trust strengthens the hand of organisations working to address political inequality, inform citizens, and ensure that power, exercised through representatives and institutions, is wielded in a responsible and accountable way to benefit wider society. 

Page 2 



## **THE JRSST CHARITABLE TRUST** 

TRUSTEES' REPORT (CONTINUED) 

_FOR THE YEAR ENDED 31 DECEMBER 2021_ 

## _**Achievements and performance**_ 

## **a. Grant making** 

In 2021, the Trust paid out a total of £174,962 in grants and approved £174,225 expenditure on new grants which are detailed in note 8 of the accounts. Grants awarded were as follows: 

The Public Benefit Journalism Research Centre (now known as the Charitable Journalism Project) was awarded funding to improve local democracy and accountability by strengthening local and community journalism. 

The National Preparedness Commission received funding to identify the relationship between social resilience and effective democratic structures during the COVID-19 pandemic. 

The John Schofield Trust received funding to help young people access a career in journalism. 

Spotlight on Corruption was funded to advocate for a strengthening of the processes by which those in public office are held to account for standards of integrity. 

The Fawcett Society received a grant towards research to understand why women chose to leave Parliament in significant numbers at the last election. 

TheatreState was awarded funding to support its ‘Influencers of Change’ programme, seeking to increase engagement with politics by young people through the creative arts, and particularly theatre. 

The Institute for Government was awarded funding to examine the success of Metro Mayors in establishing a new subnational tier of government. 

## **Strategy** 

The Trust strategy agreed in 2020 has three main areas of focus: 

- Informed citizens – democracy education and information 

- Understanding democratic and constitutional reform 

- Policy research on democracy 

In 2021, the Trustees reviewed the strategy for the second of these in more detail. With new Trustees joining the Board this year, it is opportune to update on developments affecting democracy and where JRSST-CT might be best able to add value. This area is one where the Trust shares a long-term vision of a healthy democracy with the Joseph Rowntree Reform Trust (JRRT) and where the Charitable Trust can play a distinctive role with particular opportunities for research and information gathering. Given the breadth of issues in this space, the Board recognised the benefits of focusing proactive work on key issues while remaining responsive to approaches. 

## _**Financial review**_ 

## **a. Going concern** 

Given the level of assets and reserves, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. 

Page 3 



## **THE JRSST CHARITABLE TRUST** 

TRUSTEES' REPORT (CONTINUED) _FOR THE YEAR ENDED 31 DECEMBER 2021_ 

## **b. Financial summary** 

The Trust’s income of £167,131 (2020: £138,276) is derived from two sources: a portfolio of quoted investments and rental income from the Garden House property, which is jointly owned with the Joseph Rowntree Charitable Trust. 

Total expenditure of £311,819 (2020: £227,114) included grants agreed of £174,225 (2020: £149,648), investment fees, property running and refurbishment costs, and a share of employment and other administrative costs. 

The Charity had net losses before investment gains of £144,688 in the year to December 2021 (2020: net losses of £88,838). This was due to the significant increase in grants agreed in the year. 

Despite the impact of the COVID-19 pandemic, the Charity’s investment portfolio increased in value by £825,729 (15%) to £6,248,536 during the year. As a result, the Charity’s total funds increased to £6,503,542 as at 31 December 2021 (2020: £5,739,116). 

## **c. Reserves policy** 

The constitution of the JRSST Charitable Trust, a grant-giving registered charity, gives Trustees unfettered discretion in the use of funds, both income and capital, for its grant-making purposes. It has been the recent general policy of the Trustees, taking one year with another, that the grant-making expenditure has been in line with the Trust's income and capital growth. Any surplus or deficit in each year is transferred to the Trust's reserves/unrestricted funds. 

## **d. Risk management** 

The Trustees have reviewed the major risks faced by the organisation as well as the controls, procedures and actions in place to manage those risks. These are documented in a risk register that is reviewed annually by the Board of Trustees. The most significant risk remains volatility in the investment market. The Trust has appointed professional investment managers to manage our portfolio to mitigate such risks. 

## **e. Investment objectives, strategy and management** 

The Trust continues to operate the investment policy which was approved by the Board effective January 2018. This consolidated the various previous versions and addendums whilst updating considerations for Environmental, Social and Governance (ESG) issues through both negative and positive screening and a focus on sustainability. 

Following a review of current JRSST-CT investment policy with Rathbone Greenbank, Trustees agreed to review the ethical investment criteria in 2022. 

## _**Structure, governance and management**_ 

## **a. Constitution** 

The JRSST Charitable Trust is a grant-giving registered charity, number 247498, based at the Garden House, Water End, York. It is governed by the Trust Deed dated 1 December 1955. The Trust Deed gives the Trustees uncontrolled discretion in the use of the fund for any charitable purpose or objects and also to invest the charity’s capital in any kind of investment. 

Page 4 



## **THE JRSST CHARITABLE TRUST** 

TRUSTEES' REPORT (CONTINUED) 

_FOR THE YEAR ENDED 31 DECEMBER 2021_ 

## **Structure, governance and management (continued)** 

## **b. Governance** 

The Board of Trustees is responsible for the overall strategy and direction of the Trust. Trustees give their time on a voluntary, unpaid basis. 

The Board of Trustees operates with regard to a Memorandum of Understanding with JRRT setting out the benefits for the Charitable Trust of alignment as well as the risks, and details of the cross-sharing and charging arrangements between the two entities and the steps taken to maintain the Charitable Trust’s independence. The MOU was developed in line with Charity Commission guidance on “Charities with a connection to a non-charity”. 

Day-to-day management of the Trust is the responsibility of the Chief Executive, who reports to the Board of Trustees, supported by a small staff team. 

## **c. Appointment of Trustees** 

The Trustees are appointed following an open recruitment process with additional support from an agency, Green Park. In June this year, following a successful recruitment process, the Board welcomed Jessica Garland and Benjamin Whittaker to the Board. 

## **d. Compliance issues** 

The Trust continues to follow legal advice on implementation of the Charity Commission guidance on “Charities with a connection to a non-charity”. 

## **Statement of Trustees' responsibilities** 

The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

The law applicable to charities in England & Wales requires the Trustees 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 its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles of the Charities SORP (FRS 102); 

- make judgments and accounting estimates that are reasonable and prudent; 

- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. 

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

Page 5 



## **THE JRSST CHARITABLE TRUST** 

TRUSTEES' REPORT (CONTINUED) _FOR THE YEAR ENDED 31 DECEMBER 2021_ 

## **Auditor** 

The auditor, BHP LLP, has indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditor at a meeting of the Trustees. 

Approved by order of the members of the board of Trustees and signed on their behalf by: 

## Andrew Neal 

Andrew Neal (Jun 15, 2022 14:56 GMT+1) 

## **Andrew C Neal** 

Trustee Date: Jun 15, 2022 

Page 6 



## **THE JRSST CHARITABLE TRUST** 

## INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE JRSST CHARITABLE TRUST 

## **Opinion** 

We have audited the financial statements of The JRSST Charitable Trust (the 'charity') for the year ended 31 December 2021 which comprise the Statement of financial activities, the Balance sheet and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). 

The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) 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 been withdrawn. 

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015. 

In our opinion the financial statements: 

- give a true and fair view of the state of the charity's affairs as at 31 December 2021 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 United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

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

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

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

Page 7 



## **THE JRSST CHARITABLE TRUST** 

## INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE JRSST CHARITABLE TRUST (CONTINUED) 

## **Other information** 

The other information comprises the information included in the Trustees' report other than the financial statements and our Auditor's report thereon. The Trustees are responsible for the other information contained within the Trustees' 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 where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion: 

- the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or 

- sufficient accounting records have not been kept; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- we have not received all the information and explanations we require for our audit. 

## **Responsibilities of trustees** 

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

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

Page 8 



## **THE JRSST CHARITABLE TRUST** 

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE JRSST CHARITABLE TRUST (CONTINUED) 

## **Auditor's responsibilities for the audit of the financial statements** 

We have been appointed as auditor under section 145 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. 

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 is detailed below: 

We gained an understanding of the legal and regulatory framework applicable to the charity and the sector in which it operates and considered the risk of acts by the charity that were contrary lo applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. 

We focussed on laws and regulations, relevant to the charity, which could give rise to a material misstatement in the financial statements. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management, a review of board minutes and a review of legal expenses incurred. There are inherent limitations in the audit procedures described and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. 

As part of our audit, we addressed the risk of management override of internal controls, including testing of journals and review of nominal ledger. We evaluated whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. 

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standardsand-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our Auditor's report. 

Page 9 



## **THE JRSST CHARITABLE TRUST** 

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE JRSST CHARITABLE TRUST (CONTINUED) 

## **Use of our report** 

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an 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 its trustees, as a body, for our audit work, for this report, or for the opinions we have formed. 

Jane Marshall (Jun 21, 2022 16:32 GMT+1) 

## **BHP LLP** 

Statutory Auditor Rievaulx House 1 St Mary's Court Blossom Street York, YO24 1AH 

Date: Jun 21, 2022 

BHP LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006. 

Page 10 



## **THE JRSST CHARITABLE TRUST** 

STATEMENT OF FINANCIAL ACTIVITIES _FOR THE YEAR ENDED 31 DECEMBER 2021_ 

|**Note**<br>**Income from:**<br>Other trading activities<br>3<br>Investments<br>4<br>Other income<br>5<br>**Total income**<br>**Expenditure on:**<br>Raising funds<br>6<br>Charitable activities<br>7<br>**Total expenditure**<br>**Net expenditure before net gains on investments**<br>Net gains on investments<br>**Net movement in funds**<br>**Reconciliation of funds:**<br>Total funds brought forward<br>Net movement in funds<br>**Total funds carried forward**|**Unrestricted**<br>**funds**<br>**2021**<br>**£**<br>**23,703**<br>**77,919**<br>**65,509**<br>**167,131**<br>**95,298**<br>**216,521**<br>**311,819**<br>**(144,688)**<br>**909,114**<br>**764,426**<br>**5,739,116**<br>**764,426**<br>**6,503,542**|**Total**<br>**funds**<br>**2021**<br>**£**<br>**23,703**<br>**77,919**<br>**65,509**<br>**167,131**<br>**95,298**<br>**216,521**<br>**311,819**<br>**(144,688)**<br>**909,114**<br>**764,426**<br>**5,739,116**<br>**764,426**<br>**6,503,542**|Total<br>funds<br>2020<br>£<br>23,703<br>84,338<br>30,235<br>138,276<br>43,761<br>183,353<br>227,114<br>(88,838)<br>653,839<br>565,001<br>5,174,115<br>565,001<br>5,739,116|
|---|---|---|---|



The Statement of financial activities includes all gains and losses recognised in the year. 

The notes on pages 13 to 24 form part of these financial statements. 

Page 11 



## **THE JRSST CHARITABLE TRUST** 

## BALANCE SHEET 

_AS AT 31 DECEMBER 2021_ 

|**Note**<br>**Fixed assets**<br>Tangible assets<br>12<br>Investments<br>13<br>**Current assets**<br>Debtors<br>14<br>Cash at bank and in hand<br>Creditors: amounts falling due within one year<br>15<br>**Net current liabilities / assets**<br>Creditors: amounts falling due after more than<br>one year<br>16<br>**Net assets**<br>**Charity funds**<br>Unrestricted funds<br>17<br>**Total funds**|**33,033**<br>**69,218**<br>**102,251**<br>**(128,412)**|**2021**<br>**£**<br>**284,917**<br>**6,248,536**<br>**6,533,453**<br>**(26,161)**<br>**(3,750)**<br>**6,503,542**<br>**6,503,542**<br>**6,503,542**|23,850<br>126,288<br>150,138<br>(122,553)|2020<br>£<br>292,224<br>5,422,807|
|---|---|---|---|---|
|||||5,715,031<br>27,585<br>(3,500)<br>5,739,116<br>5,739,116<br>5,739,116|



The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by: 

## Andrew Neal 

Andrew Neal (Jun 15, 2022 14:56 GMT+1) 

## **Andrew C Neal** 

Trustee 

## Date: Jun 15, 2022 

The notes on pages 13 to 24 form part of these financial statements. 

Page 12 



## **THE JRSST CHARITABLE TRUST** 

## NOTES TO THE FINANCIAL STATEMENTS 

_FOR THE YEAR ENDED 31 DECEMBER 2021_ 

## **1. Accounting policies** 

## _**1.1 Basis of preparation of financial statements**_ 

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 and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice. 

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

The financial statements are prepared on a going concern basis under the historical cost convention, unless otherwise stated in the relevant accounting policy. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £. 

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 Going concern**_ 

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. 

## _**1.3 Income**_ 

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

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. 

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service. 

Page 13 



## **THE JRSST CHARITABLE TRUST** 

## NOTES TO THE FINANCIAL STATEMENTS 

_FOR THE YEAR ENDED 31 DECEMBER 2021_ 

## **1. Accounting policies (continued)** 

## _**1.4 Expenditure**_ 

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. 

Expenditure on raising funds includes all expenditure incurred by the charity to raise funds for its charitable purposes. 

Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs. 

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure. 

All expenditure is inclusive of irrecoverable VAT. 

## _**1.5 Taxation**_ 

As a charity, The JRSST Charitable Trust is exempt from tax on income and gains falling within the available tax exemptions to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity for the year ended 31 December 2021. 

## _**1.6 Tangible fixed assets and depreciation**_ 

Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. 

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. 

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method. 

Depreciation is provided on the following bases: 

- Long-term leasehold property Straight line over 80 years - Fixtures and fittings Straight line over 10 years 

Page 14 



## **THE JRSST CHARITABLE TRUST** 

## NOTES TO THE FINANCIAL STATEMENTS 

_FOR THE YEAR ENDED 31 DECEMBER 2021_ 

## **1. Accounting policies (continued)** 

## _**1.7 Investments**_ 

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of financial activities. 

## _**1.8 Debtors**_ 

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

## _**1.9 Cash at bank and in hand**_ 

Cash at bank and 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. 

## _**1.10 Liabilities and provisions**_ 

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. 

Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. 

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost. 

## _**1.11 Financial instruments**_ 

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. 

## _**1.12 Fund accounting**_ 

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. 

Investment income, gains and losses are allocated to the appropriate fund. 

Page 15 



## **THE JRSST CHARITABLE TRUST** 

## NOTES TO THE FINANCIAL STATEMENTS 

_FOR THE YEAR ENDED 31 DECEMBER 2021_ 

_**2.**_ **Critical accounting estimates and areas of judgment** 

Estimates and judgments 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. 

## Critical accounting estimates and assumptions: 

The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. There are no estimates and assumptions to disclose, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. 

## **3. Other trading income** 

## **Income from non charitable trading activities** 

|The Garden House<br>Total 2020<br>**Investment income**<br>Income from listed investments<br>Interest receivable<br>Total 2020|**Unrestricted**<br>**funds**<br>**2021**<br>**£**<br>23,703<br>23,703<br>**Unrestricted**<br>**funds**<br>**2021**<br>**£**<br>69,435<br>8,484<br>77,919<br>84,338|**Total**<br>**funds**<br>**2021**<br>**£**<br>**23,703**<br>23,703<br>**Total**<br>**funds**<br>**2021**<br>**£**<br>**69,435**<br>**8,484**<br>**77,919**<br>84,338|Total<br>funds<br>2020<br>£<br>23,703|
|---|---|---|---|
||||Total<br>funds<br>2020<br>£<br>80,849<br>3,489<br>84,338|
|||||



## **4. Investment income** 

Page 16 



## **THE JRSST CHARITABLE TRUST** 

## NOTES TO THE FINANCIAL STATEMENTS 

_FOR THE YEAR ENDED 31 DECEMBER 2021_ 

## **5. Other incoming resources** 

|The Garden House - property expenses recharge<br>Total 2020|**Unrestricted**<br>**funds**<br>**2021**<br>**£**<br>65,509<br>30,235|**Total**<br>**funds**<br>**2021**<br>**£**<br>**65,509**<br>30,235|Total<br>funds<br>2020<br>£<br>30,235|
|---|---|---|---|
|||||



## **6. Investment management costs** 

|The Garden House establishment charges<br>Amortisation of lease<br>Depreciation of fixtures, fittings and equipment<br>Portfolio management costs<br>Total 2020|**Unrestricted**<br>**funds**<br>**2021**<br>**£**<br>63,038<br>5,617<br>1,690<br>24,953<br>95,298<br>43,761|**Total**<br>**funds**<br>**2021**<br>**£**<br>**63,038**<br>**5,617**<br>**1,690**<br>**24,953**<br>**95,298**<br>43,761|Total<br>funds<br>2020<br>£<br>16,644<br>5,617<br>1,690<br>19,810<br>43,761|
|---|---|---|---|
|||||



## **7. Analysis of expenditure by activities** 

|Grants payable (including support costs)<br>**_Total 2021_**<br>Total 2020|**Grant funding**<br>**of activities**<br>**2021**<br>**£**<br>174,225<br>174,225<br>149,648|**Support costs**<br>**2021**<br>**£**<br>42,296<br>42,296<br>33,705|**Total**<br>**funds**<br>**2021**<br>**£**<br>**216,521**<br>**216,521**<br>183,353|Total<br>funds<br>2020<br>£<br>183,353<br>183,353|
|---|---|---|---|---|
||||||



Page 17 



## **THE JRSST CHARITABLE TRUST** 

## NOTES TO THE FINANCIAL STATEMENTS 

_FOR THE YEAR ENDED 31 DECEMBER 2021_ 

## **7. Analysis of expenditure by activities (continued)** 

## **Analysis of support costs** 

|Office costs<br>Accountancy fees<br>Audit fees<br>Subscriptions<br>Meeting costs<br>Travel<br>Legal fees<br>Total 2020|**Grants**<br>**payable**<br>**2021**<br>**£**<br>36,000<br>2,115<br>2,420<br>1,366<br>295<br>100<br>-<br>42,296<br>33,705|**Total**<br>**funds**<br>**2021**<br>**£**<br>**36,000**<br>**2,115**<br>**2,420**<br>**1,366**<br>**295**<br>**100**<br>**-**<br>**42,296**<br>33,705|Total<br>funds<br>2020<br>£<br>28,000<br>1,775<br>2,066<br>100<br>149<br>175<br>1,440<br>33,705|
|---|---|---|---|
|||||



Page 18 



## **THE JRSST CHARITABLE TRUST** 

## NOTES TO THE FINANCIAL STATEMENTS 

_FOR THE YEAR ENDED 31 DECEMBER 2021_ 

## **8. Analysis of grants** 

||**Brought**<br>**forward**|**Payment**<br>**conditions**<br>**now met and**<br>**committed**<br>**to in 2021**|**Paid during**<br>**2021**|**Carried**<br>**forward**|
|---|---|---|---|---|
||**£**|**£**|**£**|**£**|
||||||
|Rowntree Society|7,000|-|(3,500)|3,500|
|Speakers' Corner Trust|6,100|-|(6,100)|-|
|The Centre for Governance & Scrutiny|25,125|-|(25,125)|-|
|Constitution Unit UniversityCollege London|37,254|-|(37,254)|-|
|Shout Out UK|40,704|-|(40,704)|-|
|National Preparedness Committee|-|30,000|(11,250)|18,750|
|Public Benefit Journalism Research Centre|-|35,000|(8,750)|26,250|
|Spotlight on Corruption|-|35,000|(8,750)|26,250|
|Fawcett Society|-|38,293|(19,147)|19,146|
|Institute for Government|-|21,550|-|21,550|
|John Schofield Trust|-|7,500|(7,500)|-|
|TheatreState|-|6,882|(6,882)|-|
|Totalgrants 2021|**116,183**|**174,225**|**(174,962)**|**115,446**|
||||||
|Totalgrants 2020|24,920|149,648|(58,385)|116,183|



## **9. Auditor's remuneration** 

The auditor's remuneration amounts to an auditor fee of £2,420 (2020 - £2,066). 

## **10. Trustees' remuneration and expenses** 

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL). 

During the year ended 31 December 2021, expenses totalling £295 were reimbursed or paid directly to 2 Trustees (2020: £149 to 1 Trustee) for travel costs incurred. 

Page 19 



## **THE JRSST CHARITABLE TRUST** 

## NOTES TO THE FINANCIAL STATEMENTS 

_FOR THE YEAR ENDED 31 DECEMBER 2021_ 

## **11. Staff costs** 

The charity shares administrative staff with The Joseph Rowntree Reform Trust Limited and makes an annual payment to the Joseph Rowntree Reform Trust Limited for administrative costs (which includes employment costs) amounting to £36,000 (2020: £28,000). 

The charity has no employees other than those shared with The Joseph Rowntree Reform Trust Limited. 

## **12. Tangible fixed assets** 

|**_Cost or valuation_**<br>At 1 January 2021<br>At 31 December 2021<br>**_Depreciation_**<br>At 1 January 2021<br>Charge for the year<br>At 31 December 2021<br>**_Net book value_**<br>At 31 December 2021<br>At 31 December 2020|**Long-term**<br>**leasehold**<br>**property**<br>**£**<br>**449,334**<br>**449,334**<br>**167,081**<br>**5,617**<br>**172,698**<br>**276,636**<br>282,253|**Fixtures and**<br>**fittings**<br>**£**<br>**16,901**<br>**16,901**<br>**6,930**<br>**1,690**<br>**8,620**<br>**8,281**<br>9,971|**Total**<br>**£**<br>**466,235**<br>**466,235**|
|---|---|---|---|
||||**174,011**<br>**7,307**<br>**181,318**|
||||**284,917**|
||||292,224|



Page 20 



## **THE JRSST CHARITABLE TRUST** 

## NOTES TO THE FINANCIAL STATEMENTS 

_FOR THE YEAR ENDED 31 DECEMBER 2021_ 

## **13. Fixed asset investments** 

|**_Cost or valuation_**<br>At 1 January 2021<br>Additions<br>Disposals<br>Revaluations<br>At 31 December 2021<br>**_Net book value_**<br>At 31 December 2021<br>At 31 December 2020|**Listed**<br>**investments**<br>**£**<br>**5,295,359**<br>**1,376,907**<br>**(1,242,847)**<br>**743,280**<br>**6,172,699**<br>**6,172,699**<br>5,295,359|**Cash held in**<br>**investment**<br>**portfolio**<br>**£**<br>**127,448**<br>**-**<br>**(51,611)**<br>**-**<br>**75,837**<br>**75,837**<br>127,448|**Total**<br>**£**<br>**5,422,807**<br>**1,376,907**<br>**(1,294,458)**<br>**743,280**<br>**6,248,536**|
|---|---|---|---|
||||**6,248,536**<br>5,422,807|



The historical cost of the listed investments held at 31 December 2020 was £4,066,643 (2020: £3,153,972). 

## **14. Debtors** 

|**_Due within one year_**<br>Amounts owed by group undertakings<br>Other debtors|**2021**<br>**£**<br>**24,599**<br>**8,434**<br>**33,033**|2020<br>£<br>11,752<br>12,098<br>23,850|
|---|---|---|



## **15. Creditors: Amounts falling due within one year** 

|Grants payable<br>Accruals|**2021**<br>**£**<br>**111,696**<br>**16,716**<br>**128,412**|2020<br>£<br>112,683<br>9,870<br>122,553|
|---|---|---|



Page 21 



## **THE JRSST CHARITABLE TRUST** 

## NOTES TO THE FINANCIAL STATEMENTS 

_FOR THE YEAR ENDED 31 DECEMBER 2021_ 

## **16. Creditors: Amounts falling due after more than one year** 

|Grants payable<br>**Statement of funds**<br>**Statement of funds - current year**<br>**_Unrestricted funds_**<br>General funds<br>**Statement of funds - prior year**<br>**_Unrestricted funds_**<br>General funds|**Balance at 1**<br>**January 2021**<br>**£**<br>**5,739,116**<br>Balance at<br>1 January<br>2020<br>£<br>5,174,115|**Income**<br>**£**<br>**167,131**<br>Income<br>£<br>138,276|**Expenditure**<br>**£**<br>**(311,819)**<br>Expenditure<br>£<br>(227,114)|**2021**<br>**£**<br>**3,750**<br>**Gains/**<br>**(Losses)**<br>**£**<br>**909,114**<br>Gains/<br>(Losses)<br>£<br>653,839|2020<br>£<br>3,500|
|---|---|---|---|---|---|
||||||**Balance at 31**<br>**December 2021**<br>**£**<br>**6,503,542**|
||||||Balance at<br>31 December<br>2020<br>£<br>5,739,116|



## **17. Statement of funds Statement of funds - current year** 

Page 22 



## **THE JRSST CHARITABLE TRUST** 

## NOTES TO THE FINANCIAL STATEMENTS 

_FOR THE YEAR ENDED 31 DECEMBER 2021_ 

## **18. Analysis of net assets between funds** 

## **Analysis of net assets between funds - current year** 

|Tangible fixed assets<br>Fixed asset investments<br>Current assets<br>Creditors due within one year<br>Creditors due in more than one year<br>**_Total_**|**Unrestricted**<br>**funds**<br>**2021**<br>**£**<br>284,917<br>6,248,536<br>102,251<br>(128,412)<br>(3,750)<br>6,503,542|**Total**<br>**funds**<br>**2021**<br>**£**<br>**284,917**<br>**6,248,536**<br>**102,251**<br>**(128,412)**<br>**(3,750)**<br>**6,503,542**|
|---|---|---|



## **Analysis of net assets between funds - prior year** 

|Tangible fixed assets<br>Fixed asset investments<br>Current assets<br>Creditors due within one year<br>Creditors due in more than one year<br>**_Total_**|Unrestricted<br>funds<br>2020<br>£<br>292,224<br>5,422,807<br>150,138<br>(122,553)<br>(3,500)<br>5,739,116|Total<br>funds<br>2020<br>£<br>292,224<br>5,422,807<br>150,138<br>(122,553)<br>(3,500)<br>5,739,116|
|---|---|---|



Page 23 



## **THE JRSST CHARITABLE TRUST** 

## NOTES TO THE FINANCIAL STATEMENTS 

_FOR THE YEAR ENDED 31 DECEMBER 2021_ 

## **19. Related party transactions** 

During the year to 31 December 2021 the Charitable Trust entered into transactions with related parties as follows: 

Four of the Trustees of the JRSST Charitable Trust are also directors of The Joseph Rowntree Reform Trust Limited and its subsidiary company, JRRT (Properties) Limited. The transactions with these companies during the year were as follows: 

Joseph Rowntree Reform Trust Limited (Reform Trust) - rent of £7,456 (2020: £7,456) was charged by the JRSST Charitable Trust for use of The Garden House. A recharge of Garden House expenses was made by the JRSST Charitable Trust of £33,801 (2020: £26,876). An amount of £36,000 (2020: £28,000) was charged by the Reform Trust for office and administration costs for the year and the balance outstanding from the Reform Trust of £24,599 is shown as a debtor at the balance sheet date (2020: £11,752). 

JRRT (Properties) Limited - rent of £3,728 (2020: £3,728) was charged by the JRSST Charitable Trust for use of The Garden House. A recharge of Garden House expenses was made by the JRSST Charitable Trust of £4,225 (2020: £3,359). At the balance sheet date the amount owing by JRRT (Properties) Ltd is £nil (2020: £nil). 

## **20. Controlling party** 

During the year the charity was under the control of the trustees. 

Page 24