THE JOSHUA TRUST
and its Subsidiary Companies CHARITY REGISTRATION NUMBER 255922
TRUSTEES’ REPORT
- and -
AUDITED ACCOUNTS
FROM 1 APRIL 2022
TO 31 MARCH 2023
THE JOSHUA TRUST
and its Subsidiary Companies
Charity Registration Number 255922
| Contents | Page |
|---|---|
| Reference and Administrative Details | 1 |
| Trustees’ Annual Report | 2 - 5 |
| Independent Auditor’s Report | 6 - 7 |
| Consolidated Statement of Financial Activities | 8 |
| Consolidated and Charity Balance Sheets | 9 |
| Consolidated Cash Flow Statement | 10 |
| Notes to the Consolidated and Charity Accounts | 11 - 21 |
| Charity Only Statement of Financial Activities | 22 |
Page 1
THE JOSHUA TRUST
and its Subsidiary Companies
Charity Registration Number 255922
REFERENCE AND ADMINISTRATIVE DETAILS
TRUSTEES
R. Grussgott Mrs. R Grussgott S. Grussgott Mrs. K Grussgott C. Landau M. Rubin
CHARITY’S CONTACT AND PRINCIPAL ADDRESS
R. Grussgott 7 Craven Park Court Craven Park Road London N15 6AA
DETAILS OF FORMATION
The Charity was created by Declaration of Trust on 10 April 1968 and registered with the Charity Commission on 30 May 1968 under Charity Number 255922
BANKERS
The Royal Bank of Scotland PLC Barclays Bank PLC
SOLICITORS
Olswang LLP
INDEPENDENT AUDITOR
Stephen Sacks FCA Senior Statutory Auditor for Shears & Partners Limited Chartered Accountants 7 Craven Park Court London N15 6AA
Page 2
THE JOSHUA TRUST
and its Subsidiary Companies
Charity Registration Number 255922
TRUSTEES’ ANNUAL REPORT
The Trustees present their Annual Report along with the Audited Accounts of The Joshua Trust (“the Charity”) and its Subsidiary Companies (“the Accounts”) for the year ended 31 March 2023. The Accounts have been prepared in accordance with the Accounting Policies set out on Pages 11 to 13 and comply with the Declaration of Trust and applicable law.
• OBJECTIVES AND ACTIVITIES
The Trustees shall stand possessed of the Trust Fund upon trust to pay or apply the whole of the income and the capital of the Trust Fund for those purposes, both in the United Kingdom and abroad, recognised as Charitable in English Law.
Monies are raised by way of investment income from both its own and its wholly owned subsidiaries’ property assets and interest receivable from cash deposits. Investment income earned in the year amounted to £1,027k (2022: £1,114k).
Charities and Public Benefit
The Trustees have considered the Charity Commission’s general guidance on public benefit and are satisfied that the Charity complies with that guidance.
Grant Making Policy
The Charity’s policy is to act according to the Declaration of Trust which enables grants and donations to be made from both income and capital. All applications to the Charity for grants, donations or loans are considered carefully by the Trustees at regular meetings. On most occasions, if the Trustees feel that the application meets their approval in principle, they will meet applicants face to face and discuss with them the most effective way of providing assistance. The Trustees usually then have a further meeting before making a decision as to whether assistance should be granted, and if so, in what form and to what level.
The Trustees find that this is the most effective way of aiding applicants as it allows them flexibility in terms of deciding whether they will assist by way of a donation or an interest free loan and also ensures that each application is considered fairly.
•
ACHIEVEMENTS AND PERFORMANCE
The Trustees continued to support religious organisations, institutions of higher and further education, and institutions caring for the poor and sick.
The Trustees are delighted to announce that the Charity has been able to make Grants of some £752k (2022: £793k) to good causes during the year. The recipients who received Grants that were material to the total Grants made to Institutions are detailed in Note 7 to the Accounts.
Page 3
THE JOSHUA TRUST
and its Subsidiary Companies
Charity Registration Number 255922
TRUSTEES’ ANNUAL REPORT (Continued)
• FINANCIAL REVIEW
Review of the Charity’s Financial Position at the end of the Financial Year
The Charity and its Subsidiaries Incoming Resources amounted to some £1,098k ( 2022: £1,185k ). Resources Expended amounted to some £982k ( 2022: £1,067k ) hence there was a surplus/(deficit) for the year of some £116k (2022: £116k). The Charity and its Subsidiaries Consolidated Funds increased/(decreased) by the same amount ( 2022: increased/(decreased) by the same amount).
The Charity and its Subsidiaries own a portfolio of commercial investment properties registered both in its own name and in the names of its group undertakings, Addison Properties Limited and Pastbridge Limited. The Charity aims to achieve investment returns based on rental income in excess of 3.5% per annum (on market valuation) and based on capital growth of 7.5% per annum.
The Trustees’ experience of the needs of the Charity’s beneficiaries. It is felt that the beneficiaries will receive the greatest benefit from the Charity if the Charity provides regular contributions rather than one off lump sums. As such, the Trustees invest in commercial investment properties which yield substantial annual income which, when donated annually to the beneficiaries, to meet the shortfalls in the beneficiaries’ annual budgets. The experience of the Trustees is that the beneficiaries do not struggle to raise capital for one off projects, however, their biggest difficulty is raising funding for annual shortfalls.
The Trustees discuss the ongoing position of property investments at their quarterly board meetings.
Reserves Policy
The Charity’s unrestricted funds are made up of two components:
a. General Reserve
This has arisen mainly as a result of property disposals. Historically, sales proceeds were reinvested in a portfolio of other commercial investment properties which consistently produce substantial net rental income. The Trustees do not intend selling the income producing assets in order to maintain the continuing income stream therefrom.
b.
Revaluation Reserve
This arises as a result of the Charity’s compliance with Current Accounting Standards which require the Trustees to revalue Investments to their estimated current market value at each year end. This Reserve, which at the year end amounted to some £6.2m (2022: £6.2m) at the Group level and £3.1m (2022: £3.1m ) at the Charity only level, is, by its very nature non-distributable, until such time that it is realised on the disposal of the underlying assets. The Trustees have no intention of disposing of the underlying income producing assets for the foreseeable future.
Page 4
THE JOSHUA TRUST
and its Subsidiary Companies
Charity Registration Number 255922
TRUSTEES’ ANNUAL REPORT (Continued)
• FINANCIAL REVIEW (Continued)
Risk Management
The Trustees regularly consider the risks to which the Charity is exposed at their quarterly Trustee meetings, and systems designed to mitigate those risks are considered on an ongoing basis.
There are two major risks that have been identified by the Trustees. The first is the risk of a fall in property values and rental income. The Trustees feel that the risk is mitigated by their expertise in the property market, which they feel would allow them to protect the interests of the Charity. The Trustees spend a large amount of time ensuring that the property investment portfolio is run on a professional basis.
The second is a fall in the value of the subsidiary undertakings. Since the subsidiaries are property investment companies, the Trustees can apply their expertise in overseeing the portfolios and thereby mitigate the abovementioned risks.
Other
During the year, the majority of the Charity’s Investment Property portfolio was managed by the Trustees at no cost to the Charity. This service was provided at no charge. The charge in the Accounts for Management Charges of £11k ( 2022: £7k ) relates to properties that it is not practical due to their remote geographical locations for the Trustees to manage and hence they are managed by a third party manager.
• STRUCTURE, GOVERNANCE AND MANAGEMENT
The Joshua Trust is constituted by a Declaration of Trust dated 10 April 1968 and was Registered with the Charity Commission on 30 May 1968 under Charity Number 255922.
The Trustees in office in the year were as follows:
R. Grussgott Mrs. R Grussgott S. Grussgott Mrs. K Grussgott C. Landau M. Rubin
The power of appointing Trustees lies with the existing Trustees.
There are no policies adopted by the Trustees for the recruitment, induction and training of Charity Trustees. Due to the nature of the Charity’s activities, most of the day to day work is learned through practical exposure and ultimately experience.
Page 5
THE JOSHUA TRUST
and its Subsidiary Companies
Charity Registration Number 255922
TRUSTEES’ ANNUAL REPORT (Continued)
- STRUCTURE, GOVERNANCE AND MANAGEMENT (Continued)
Trustees’ Responsibilities in Relation to the Accounts
The Law applicable to charities in England and Wales requires the Trustees to prepare Accounts for each Financial Year, which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources of the Charity for that year. In preparing the Accounts, the Trustees are required to:
-
select suitable Accounting Policies and then apply them consistently;
-
observe the methods and principles in the Charities SORP;
-
make judgments and estimates that are reasonable and prudent;
-
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the Accounts, and
-
prepare the Accounts on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and to enable them to ensure that the Accounts comply with the Charities Act 2011 (“the 2011 Act”), the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Declaration of Trust. 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.
Legislation in the United Kingdom governing the preparation and dissemination of accounts may differ from legislation in other jurisdictions.
In the case of each Trustee who is in office at the time when the Trustees’ Report is approved:
-
so far as the Trustees are aware, there is no relevant audit information (information needed by the Auditor of the Charity in connection with preparing his report) of which the Auditor of the Charity is unaware, and
-
the Trustees have taken all steps that they ought to have taken as Trustees in order to make themselves aware of any relevant information and to establish that the Auditor of the Charity is aware of that information.
-
REFERENCE AND ADMINISTRATIVE DETAILS
Reference and Administrative Details are set out on Page 1 and form part of this report.
The Trustees declare that they have approved the Trustees’ Report above.
S. GRUSSGOTT
Trustee
Date: 4 April 2025
Page 6
INDEPENDENT AUDITOR’S REPORT
TO THE TRUSTEES OF
THE JOSHUA TRUST
and its Subsidiary Companies
Charity Registration Number 255922
Opinion
We have Audited the Accounts of The Joshua Trust (“the Charity”) and its subsidiaries (‘the Group’) for the year ended 31 March 2023 which comprise the Consolidated Statement of Financial Activities, the Consolidated and the Charity’s Balance Sheet, the Consolidated Cash Flow Statement, and the Notes to the Audited Accounts, including a summary of significant Accounting Policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK (United Kingdom Generally Accepted Accounting Practice). In our opinion, the Accounts:
-
give a true and fair view of the state of the Group’s and of the Charity’s affairs as at 31 March 2023 and of the Group’s 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 (“the 2011 Act”) and the Charities Act 2022 (“the 2022 Act”).
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 Accounts section of our report. We are independent of the Group and the Charity in accordance with the ethical requirements that are relevant to our Audit of the Accounts in the UK, including the FRC’s Ethical Standard, and the provisions available for small entities, in the circumstances set out in Note 16 to the Accounts, 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 Accounts, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the Accounts 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 Accounts are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the Annual Report, other than the Accounts and our Auditor’s Report thereon. The Trustees are responsible for the other information. Our opinion on the Accounts does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our Audit of the Accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Accounts or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the Accounts or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
-
the information given in the Report of the Trustees is inconsistent in any material respect with the Accounts; or
-
sufficient accounting records have not been kept; or
-
the Accounts are not in agreement with the accounting records; or
-
we have not received all the information and explanations we require for our Audit.
Auditor's responsibilities for the Audit of the Accounts
We have been appointed as Auditors under Section 151 of the 2011 Act and report in accordance with the 2011 Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the Accounts 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 the Accounts.
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:
Our approach was as follows:
-
We obtained an understanding of the legal and regulatory frameworks that are applicable to the Charity and determined that the most significant are those that relate to:
-
which laws and regulations are significant to the Charity and why.
-
which financial reporting framework is significant to the Charity.
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whether there were any complex taxation issues which are significant to the Charity and which might impact risks of material misstatement or elevate risks of non-compliance with laws and regulations.
-
whether there were any other significant laws and regulations that may have an effect on the determination of the amounts and disclosures in the Accounts.
The key laws and regulations we have considered in this context included the 2011 Act and tax legislation. In addition, we have considered provisions of other laws and regulations that do not have a direct effect on the Accounts but compliance with which may be fundamental to the Charity's ability to operate or to avoid a material penalty. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
-
We assessed the risks of material misstatement in respect of fraud as follows:
-
We made fraud enquiries of the Trustees both before and during the audit.
-
Analytical procedures used to identify any unusual or unexpected relationships.
Page 7
INDEPENDENT AUDITOR’S REPORT
TO THE TRUSTEES OF
THE JOSHUA TRUST
and its Subsidiary Companies
Charity Registration Number 255922
(Continued)
-
The audit team discussed and identified particular areas that were susceptible to misstatement as part of their fraud discussion.
-
The audit team identified any fraud risk factors in its discussion of related party relationships and transactions.
-
Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above. - We discussed with the Trustees our approach to understanding the Charity’s policies and procedures for compliance with those laws and regulations.
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We discussed with the Trustees and consequently gained an understanding of how instances of non-compliance with laws and regulations or knowledge of actual, suspected, or alleged fraud is documented.
-
We discussed with the Trustees and made relevant enquiries of them before and during the audit?
-
We corroborated our enquiries through:
-
We corroborated our enquiries as follows:
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review of Board minutes, where relevant;
-
review of correspondence with HMRC or Charity Commission, where relevant;
-
review of correspondence with other regulatory bodies, where relevant;
-
-
There was no contradictory evidence.
-
We considered the risk of fraud through management override and, in response, we incorporated testing of manual journal entries into our audit approach. - We tested year-end journals only, or journal entries throughout the year. We used data analytics to identify journal entries demonstrating certain risk factors.
-
We considered the influence of performance targets on management to be a risk, and if so, procedures were designed to address this risk. - There were no transactions outside the normal course of business identified, and we corroborated that they were made for valid Charitable rationale.
-
Based on the results of our risk assessment we designed our audit procedures to identify and to address material misstatements in relation to fraud, including: - We considered and designed audit procedures to address, for example:
-
the possibility of fraudulent or corrupt payments made through third parties.
-
the risk of bribery and corruption, including whether the Charity operates overseas, or makes grants overseas.
-
where segregation of duties is limited or not in place at all.
-
-
We evaluated whether the selection and application of accounting policies by the Charity, particularly those related to subjective measurements and complex transactions, may be indicative of fraudulent financial reporting resulting from management’s effort to manage earnings. - We incorporated an element of unpredictability in the selection of the nature, timing and extent of audit procedures.
-
Where we identified transactions displaying identified risk criteria:
-
Further work was carried out where appropriate;
-
Additional testing to source information was carried out;
-
We had discussions with specialists on areas of the Accounts particularly susceptible to fraud.
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• As part of our audit of our audit of the Accounts which have been Consolidated, we communicated with component accountants/auditors to request identification of any instances of non-compliance with laws and regulations that could give rise to a material misstatement of the Accounts of the group.
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• The engagement partner considers the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations.
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• We considered the extent to which the audit was considered capable of detecting irregularities: - We considered how the audit would be affected by the likelihood of detection.
-
This included inter-alia discussion of:
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the inherent difficulty in detecting irregularities;
-
the effectiveness of the entity’s internal controls; and
-
the nature, timing and extent of audit procedures performed.
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There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the Accounts, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion.
A further description of our responsibilities for the Audit of the Accounts is located on the Financial Reporting Council’s website at: http://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 Trustees of the Charity, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the Charity's Trustees those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and the Trustees of the Charity as a body, for our audit work, for this report, or for the opinions we have formed.
Stephen Sacks (Senior Statutory Auditor) 4 April 2025 Shears & Partners Limited 7 Craven Park Court Chartered Accountants London Statutory Auditor N15 6AA
Shears & Partners Limited is eligible for appointment as Auditor of the Charity by virtue of its eligibility for appointment as Auditor of a company under of Section 1212 of the Companies Act 2006.
Page 8
THE JOSHUA TRUST
and its Subsidiary Companies
Charity Registration Number 255922
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 MARCH 2023
| Note | 2023 | 2022 | |
|---|---|---|---|
| £ | £ | ||
| INCOMING RESOURCES | |||
| Income and Endowments from: | |||
| Donations and Legacies | (4) | 40,000 | 21,144 |
| Investments | (5) | 1,026,827 | 1,114,168 |
| 1,066,827 | 1,135,312 | ||
| Other Incoming Resources | - | 49,193 | |
| Total Incoming Resources | (13) | 1,066,827 | 1,184,505 |
| __ | ____ | ||
| RESOURCES EXPENDED | |||
| EXPENDITURE ON: | |||
| RAISING FUNDS | (6) | (177,917) | (252,561) |
| CHARITABLE ACTIVITIES | (7) | (751,500) | (793,500) |
| OTHER EXPENDITURE | (8) | (21,000) | (21,000) |
| Total Resources Expended | (13) | (900,417) | (1,067,061) |
| __ | ____ | ||
| Gains/(Losses) on Disposal of Revalued Investments | (14) | - | - |
| __ | ____ | ||
| NET INCOMING/(OUTGOING) RESOURCES | (14) | 116,410 | 117,444 |
| OTHER RECOGNISED GAINS/(LOSSES) | |||
| Gains/(Losses) on Revaluation of Investments | (14) | - | - |
| Other Gains/(Losses) | - | - | |
| Net Movement in Funds | (14) | 116,410 | 117,444 |
| RECONCILIATION OF FUNDS: | |||
| TOTAL FUNDS BROUGHT FORWARD | (13)/(14) | 11,857,834 | 11,740,390 |
| TOTAL FUNDS CARRIED FORWARD | (13)/(14) | £11,974,244 | £11,857,834 |
| ======== | ======= |
The Notes on Pages 11 to 21 form part of the Audited Accounts.
Page 9
THE JOSHUA TRUST
and its Subsidiary Companies
Charity Registration Number 255922
CONSOLIDATED AND CHARITY BALANCE SHEETS
AS AT 31 MARCH 2023
| Note | Consolidated | Consolidated | Charity | Charity | |
|---|---|---|---|---|---|
| _____ | _____ | ||||
| 31.3.2023 | 31.3.2022 | 31.3.2023 | 31.3.2022 | ||
| £ | £ | £ | £ | ||
| FIXED ASSETS | |||||
| Tangible Assets | (9) | 1,331 | 2,001 | 1,330 | 2,000 |
| Investments | (10) | 10,299,400 | 10,295,000 | 11,114,639 | 11,110,439 |
| 10,300,731 | 10,297,001 | 11,115,969 | 11,112,439 | ||
| ___ | _____ | ___ | _____ | ||
| CURRENT ASSETS | |||||
| Debtors | (11) | 805,388 | 691,452 | 862,354 | 759,682 |
| Cash at Bank and in Hand | 1,210,789 | 1,228,955 | 79,275 | 63,760 | |
| 2,016,177 | 1,920,407 | 941,629 | 823,442 | ||
| CREDITORS:Amounts | |||||
| falling due within one year | (12) | (342,664) | (359,574) | (83,354) | (78,047) |
| NET CURRENT | |||||
| ASSETS/(LIABILITIES) | 1,673,513 | 1,560,833 | 858,275 | 745,395 | |
| __ | _____ | ___ | _____ | ||
| NET ASSETS | £11,974,244 | £11,857,834 | £11,974,244 | £11,857,834 | |
| ======== | ======= | ======== | ======= | ||
| FUNDS OF THE | |||||
| GROUP/CHARITY | |||||
| Unrestricted Funds | (13) | 5,743,264 | 5,626,854 | 5,743,264 | 5,626,854 |
| Revaluation Reserve | (13) | 6,230,980 | 6,230,980 | 6,230,980 | 6,230,980 |
| TOTAL FUNDS | (13) | £11,974,244 | £11,857,834 | £11,974,244 | £11,857,834 |
| ======== | ======= | ======== | ======= |
The Accounts were approved on 4 April 2025 and signed on behalf of all of the Trustees.
R. GRUSSGOTT
The Notes on Pages 11 to 21 form part of the Audited Accounts.
Page 10
THE JOSHUA TRUST
and its Subsidiary Companies
Charity Registration Number 255922
CONSOLIDATED CASHFLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
| Cash flows from operating activities | ||
|---|---|---|
| 2023 | 2022 | |
| £ | £ | |
| Net cash provided by operating activities | (18,166) | 4,704 |
| Net increase/(decrease) in cash and cash equivalents | ||
| Cash and cash equivalents at the beginning of the year | 1,228,955 | 1,224,251 |
| Cash and cash equivalents at the end of the year | 1,210,789 | 1,228,955 |
| __ | ____ | |
| Reconciliation of net movements in funds to net cash | ||
| flow from operating activities | ||
| Net income for the reporting period (as per the | ||
| Consolidated Statement of Financial Activities) | 116,410 | 117,444 |
| Adjustments for the following: | ||
| (Increase)/decrease in Fixed Assets | (3,730) | (1,700) |
| (Increase)/decrease in Debtors | (113,936) | (103,304) |
| (Increase)/decrease in Creditors | (16,910) | (7,736) |
| Net cash provided by operating activities | £(18,166) | £4,704 |
| ===== | ==== | |
| Analysis of cash and equivalents | ||
| Bank balances and short-term deposits | £1,210,789 | £1,228,955 |
| ======= | ======= | |
| Analysis of Fixed Assets | ||
| Tangible Assets see Note 9 | 1,331 | 2,001 |
| Investments see Note 10 | 10,299,400 | 10,295,000 |
| £10,300,731 | £10,297,001 | |
| ======== | ======= | |
| Analysis of Debtors | ||
| See Note 11 | £805,388 | £691,452 |
| ====== | ===== | |
| Analysis of Creditors | ||
| See Note 12 | £342,664 | £359,574 |
| ====== | ===== |
Page 11
THE JOSHUA TRUST
and its Subsidiary Companies
Charity Registration Number 255922
NOTES TO THE CONSOLIDATED AND CHARITY ACCOUNTS – 31 MARCH 2023
1. STATUTORY INFORMATION
The Joshua Trust is a Charitable Trust, registered in England and Wales, Charity Registration Number 255922. The Charity’s Contact and Address are Mr Robert Grussgott, 7 Craven Park Court, Craven Park Road, London, N15 6AA.
2. COMPLIANCE WITH ACCOUNTING STANDARDS
The Audited Consolidated Accounts have been prepared in accordance with the provisions of FRS 102 (the Financial Reporting Standard applicable in the UK), the Charities FRS 102 SORP and the Charities SORP Update Bulletin 2.
There were no material departures from the above Accounting Standards.
3. ACCOUNTING POLICIES
a. Basis of Accounting
The Accounts have been prepared in accordance with the historical cost convention as modified by the Revaluation of Investments and in accordance with:
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The Charities Act 2011 (“the 2011 Act”)
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The Financial Reporting Standard applicable in the UK FRS 102 (“FRS 102”)
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• The Statement of Recommended Practice: Accounting and Reporting by Charities preparing their Accounts in accordance with the Financial Reporting Standard applicable in the UK (“FRS 102”) issued on 16 July 2014 the FRS 102 SORP (“the SORP”).
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The Charities SORP (FRS 102) Update Bulletin 2 issued on 5 October 2018 (“the Charities SORP FRS 102”).
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The Charities Act 2022 (“the 2022 Act”)
The Charity constitutes a public entity as defined by FRS 102.
The Trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern.
The most significant areas of adjustment and key assumptions that affect items in the Accounts are to do with the risk of a fall in property values and rental income in the Charity or its subsidiaries (see Note 10 for more information). With respect to the next reporting period, 2023-24, the most significant areas of uncertainty that affect the carrying value of assets held by the Trust are the level of investment returns and the performance of investment markets (see the Investment Policy and performance and risk management sections of the Trustees’ Annual Report for more information).
b. Consolidated Accounts
The Accounts consolidate the results of the Charity and its Subsidiary Undertakings on a line by line basis. They also include separate details of the Balance Sheet of the Charity.
Page 12
THE JOSHUA TRUST
and its Subsidiary Companies
Charity Registration Number 255922
NOTES TO THE CONSOLIDATED AND CHARITY ACCOUNTS – 31 MARCH 2023 (Continued)
3. ACCOUNTING POLICIES (Continued)
c. Voluntary Income
Voluntary Income comprises donations that are accounted for in the Statement of Financial Activities (“SOFA”) when the Charity becomes entitled to the donation and any conditions for receipt are met.
- d. Investment Income
Investment Income comprises rents and interest receivable, on an accruals basis.
e. Raising Funds
Investment Management Costs comprise Investment Property expenses including property costs and interest payable, on an accruals basis and where appropriate include VAT.
f. Charitable Activities
Charitable Activities comprise Grants and Donations made which are charged in the Accounts in the year in which the payment of funds is affected.
- g. Fixed Assets
Tangible Assets – Depreciation
Depreciation is provided at the following Annual Rate in order to write the cost of each asset down to its estimated residual value over its useful economic life:
% On Written Down Value
Computer Equipment 33
- h. Investment Property
Investment properties are included at fair value. Gains/(Losses) are recognised in the Statement of Financial Activities. Deferred Taxation is not provided on these Gains/(Losses) because the Charity is exempt from Capital Gains Tax given its Registered Charity status.
i. Liability Recognition
Liabilities are recognised as soon as there is a legal or constructive obligation committing the Charity or its subsidiaries to the expenditure.
i. Taxation Status
The Charity is not liable to UK Taxation on its activities given its Charitable Status.
Page 13
THE JOSHUA TRUST
and its Subsidiary Companies
Charity Registration Number 255922
NOTES TO THE CONSOLIDATED AND CHARITY ACCOUNTS – 31 MARCH 2023 (Continued)
3. ACCOUNTING POLICIES (Continued)
- j. Programme Related Investments
Programme related investments are assets held by the Charity that provides investment funding to individuals or organisations in order to directly further the charitable purposes of the investing charity; any financial return obtained is not a primary reason for making the investment.
k. Fund Accounting
The Unrestricted Funds held by the Charity are made up as follows:
General Reserve
This represents funds that can be used in accordance with the objects of the Charity at the discretion of the Trustees.
Revaluation Reserve:
This Reserve can only be used by the Charity upon transfer to the General Reserve when the revaluation is realised on the disposal of the underlying Investments.
ANALYSIS OF INCOME AND ENDOWMENTS FROM:
- DONATIONS AND LEGACIES
| 4. | DONATIONS AND LEGACIES | ||
|---|---|---|---|
| 2023 | 2022 | ||
| £ | £ | ||
| Corporate Donors including Related Party (see Note 15) | 40,000 | 21,144 | |
| Individual Donors | - | - | |
| £40,000 | £21,144 | ||
| ===== | ==== | ||
| 5. | INVESTMENTS | ||
| Rent Receivable | 1,023,100 | 1,114,076 | |
| Interest Receivable | 3,727 | 92 | |
| £1,026,827 | £1,114,168 | ||
| ======= | ====== |
Page 14
THE JOSHUA TRUST
and its Subsidiary Companies
Charity Registration Number 255922
NOTES TO THE CONSOLIDATED AND CHARITY ACCOUNTS – 31 MARCH 2023 (Continued)
ANALYSIS OF EXPENDITURE ON:
6. RAISING FUNDS
| RAISING FUNDS | ||
|---|---|---|
| 2023 | 2022 | |
| £ | £ | |
| Agent’s Rent Collection Fees | 46 | 2,600 |
| Bad Debts | 10,906 | 47,922 |
| Bank Charges | 600 | 691 |
| Depreciation | 670 | 1,050 |
| General Expenses | 26 | 26 |
| Hire of Equipment | 1,363 | 3,816 |
| Insurance | 11,759 | 19,146 |
| Interest | - | - |
| Legal and Professional Fees | 4,075 | 4,810 |
| Letting Expenses | 3,380 | 4,704 |
| Light and Heat | 9,990 | 11,574 |
| Management Charges | 11,090 | 6,535 |
| Postage and Stationery | 301 | 264 |
| Rates and Water | 12,895 | (582) |
| Repairs and Maintenance | 72,750 | 114,249 |
| Salaries | 34,285 | 34,284 |
| Service Charges | 3,590 | 1,472 |
| Telephone | 10 | - |
| Travelling | 181 | - |
| £177,917 | £252,561 | |
| ====== | ===== | |
| Salaries and Wages comprised the following: | ||
| Gross Salaries | 34,285 | 34,284 |
| Social Security Costs | - | - |
| £34,285 | £34,284 | |
| ===== | ==== |
The average number of employees including unpaid Trustees in the year was 8 (2022:8).
Page 15
THE JOSHUA TRUST
and its Subsidiary Companies
Charity Registration Number 255922
NOTES TO THE CONSOLIDATED AND CHARITY ACCOUNTS – 31 MARCH 2023 (Continued)
7. CHARITABLE ACTIVITIES
Analysis of Grants/Donations
Year Ended 31 March 2023
| Grants to | Grants to | |
|---|---|---|
| Individuals | Institutions | |
| £ | ||
| Education | - | 301,000 |
| General Charitable | - | 182,000 |
| Relief of Poverty | - | 75,000 |
| Religious Organisations | - | 69,000 |
| Welfare | - | 124,500 |
| Total Grants/Donations Paid | £ - | £751,500 |
| == | ====== |
Grants to particular Institutions that are material in the context of Grants to Institutions were made to the following Institutions for the following purposes:
| Total | Total | ||
|---|---|---|---|
| Number of | Amount of | ||
| Name of Institution | Purpose | Grants Paid | Grants Paid |
| £ | |||
| Kollel Veyoel Moshe | Education | 6 | 70,000 |
| CMZ Limited | General | ||
| Charitable | 9 | 75,000 | |
| Sub total | 15 | 145,000 | |
| Grants immaterial to total grants made to Institutions | 65 | 606,500 | |
| 80 | £751,500 | ||
| == | ====== |
Page 16
THE JOSHUA TRUST
and its Subsidiary Companies
Charity Registration Number 255922
NOTES TO THE CONSOLIDATED AND CHARITY ACCOUNTS – 31 MARCH 2023 (Continued)
7. CHARITABLE ACTIVITIES (Continued)
Analysis of Grants/Donations
Year Ended 31 March 2022
| Grants to | Grants to | |
|---|---|---|
| Individuals | Institutions | |
| £ | ||
| Education | - | 273,500 |
| General Charitable | - | 16,000 |
| Relief of Poverty | - | 260,000 |
| Religious Organisations | - | 150,000 |
| Welfare | - | 94,000 |
| Total Grants/Donations Paid | £ - | £793,500 |
| == | ===== |
Grants to particular Institutions that are material in the context of Grants to Institutions were made to the following Institutions for the following purposes:
| Total | Total | ||
|---|---|---|---|
| Number of | Amount of | ||
| Name of Institution | Purpose | Grants | Grants |
| Paid | Paid | ||
| £ | |||
| Beis Aharon Trust Limited | Education | 3 | 60,000 |
| Friends of Mercaz Hatorah Belz | |||
| Macnivka | Relief of Poverty | 4 | 60,000 |
| Religious | |||
| Kehal Yisroel D’Chasidei Gur | Organisation | 4 | 85,000 |
| Sub total | 11 | 205,000 | |
| Grants immaterial to total grants made to Institutions | 68 | 588,500 | |
| 79 | £793,500 | ||
| == | ===== |
Page 17
THE JOSHUA TRUST
and its Subsidiary Companies
Charity Registration Number 255922
NOTES TO THE CONSOLIDATED AND CHARITY ACCOUNTS – 31 MARCH 2023 (Continued)
8. OTHER EXPENDITURE
| OTHER EXPENDITURE | ||
|---|---|---|
| 2023 | 2022 | |
| £ | £ | |
| Accountancy Fees (including VAT) | 10,500 | 10,500 |
| Auditors’ Remuneration (including VAT) | 10,500 | 10,500 |
| Others | - | - |
| £21,000 | £21,000 | |
| ===== | ==== |
The Auditors charged £4,075 (2022: £4,810 ) in respect of non-audit work carried out during the year principally for processing monthly payroll and other administrative assignments.
9. TANGIBLE ASSETS
| TANGIBLE ASSETS | ||
|---|---|---|
| Computer | Equipment | |
| Group | Charity | |
| £ | £ | |
| Cost | ||
| At 1 April 2022 | 4,899 | 3,510 |
| Additions | - | - |
| At 31 March 2023 | 4,899 | 3,510 |
| ____ | ____ | |
| Depreciation | ||
| At 1 April 2022 | (2,898) | (1,510) |
| Charge for the Year | (670) | (670) |
| 31 March 2023 | (3,568) | (2,180) |
| _____ | ____ | |
| Net Book Value | ||
| At 31 March 2023 | £1,331 | £1,330 |
| ==== | ==== | |
| At 31 March 2022 | £2,001 | £2,000 |
| ==== | ==== |
Page 18
THE JOSHUA TRUST
and its Subsidiary Companies
Charity Registration Number 255922
NOTES TO THE CONSOLIDATED AND CHARITY ACCOUNTS – 31 MARCH 2023 (Continued)
10. INVESTMENTS
| INVESTMENTS | |
|---|---|
| Freehold Land | |
| Group | & Buildings |
| £ | |
| Valuation and Net Book Value | |
| At 1 April 2022 | 10,295,000 |
| Additions/(Disposals) | 4,400 |
| Revaluation | - |
| At 31 March 2023 | £10,299,400 |
| ======== | |
| Cost | 7,154,521 |
| Revaluation | 3,144,879 |
| £10,299,400 | |
| ======== |
| Long Leasehold | ||||
|---|---|---|---|---|
| Charity | Land & | Freehold Land | Subsidiary | |
| Buildings | & Buildings | Undertakings | Total | |
| £ | £ | £ | £ | |
| Valuation and Net Book Value | ||||
| At 1 April 2022 | 300,000 | 7,040,000 | 3,770,439 | 11,110,439 |
| Additions/(Disposals) | - | 4,400 | - | - |
| Revaluation | - | - | (200) | (200) |
| At 31 March 2023 | £300,000 | £7,044,400 | £3,770,239 | £11,114,639 |
| ====== | ======= | ======= | ======== | |
| Cost | 64,347 | 4,818,703 | 4 | 4,883,054 |
| Revaluation | 235,653 | 2,225,697 | 3,770,235 | 6,231,585 |
| £300,000 | £7,044,400 | £3,770,239 | £11,114,639 | |
| ====== | ======= | ======= | ======== |
Subsidiary Undertakings
The Charity’s investment in Subsidiary Undertakings comprises the following:
| Profit/(Loss) After Taxation for the | Profit/(Loss) After Taxation for the | Profit/(Loss) After Taxation for the | ||||
|---|---|---|---|---|---|---|
| Holding | Financial Year | Valuation of Holding | ||||
| 31 March | 31 | March | 31 March | 31 March | ||
| 2023 | 2022 | 2023 | 2022 | |||
| £ | £ | £ | £ | |||
| Addison Properties | ||||||
| Limited – 01153532 | 100% | (200) | (1,641) | 3,256,917 | 3,257,117 | |
| Pastbridge Limited – | ||||||
| 06834596 | 100% | - | - | 513,322 | 513,322 | |
| £3,770,239 | £3,770,439 | |||||
| ======= | ====== |
Page 19
THE JOSHUA TRUST
and its Subsidiary Companies
Charity Registration Number 255922
NOTES TO THE CONSOLIDATED AND CHARITY ACCOUNTS – 31 MARCH 2023 (Continued)
11. DEBTORS
| DEBTORS | |||||
|---|---|---|---|---|---|
| Consolidated | Charity | ||||
| 31 March | 31 March | 31 March | 31 March | ||
| 2023 | 2022 | 2023 | 2022 | ||
| £ | £ | £ | £ | ||
| Trade Debtors | 261,890 | 278,135 | 40,575 | 47,252 | |
| Other Debtors | 283,841 | 252,920 | 6,628 | 6,628 | |
| Amounts Owed by Group | |||||
| Undertakings | - | - | 736,151 | 631,963 | |
| Programme | Related | 202,270 | 122,250 | 72,500 | 67,500 |
| Investments | |||||
| Prepayments and | Accrued | ||||
| Income | 57,387 | 38,147 | 6,500 | 6,339 | |
| £805,388 | £691,452 | £862,354 | £759,682 | ||
| ====== | ===== | ====== | ===== |
Programme related investments (“PRI”) comprise Charitable Loans these are interest free and are repayable on demand. The amount of interest that could be payable on a discounted basis is immaterial to these Accounts and therefore no provision has been made.
- CREDITORS: Amounts falling due within one year
| Consolidated | Consolidated | Charity | Charity | |
|---|---|---|---|---|
| 31 March | 31 March | 31 March | 31 March | |
| 2023 | 2022 | 2023 | 2022 | |
| £ | £ | £ | £ | |
| Tenant Deposits | 14,813 | 14,813 | - | - |
| Trade Creditors | 29,295 | 12,739 | 8,653 | 3,842 |
| Amount Owed to Group | ||||
| Undertaking | - | - | - | - |
| Other Creditors | 129,125 | 130,606 | 63,705 | 63,705 |
| Taxation and Social | ||||
| Security | 38,963 | 50,819 | - | - |
| Accruals and Deferred | ||||
| Income | 130,468 | 150,597 | 10,996 | 10,500 |
| £342,664 | £359,574 | £83,354 | £78,047 | |
| ====== | ===== | ===== | ==== |
Page 20
THE JOSHUA TRUST
and its Subsidiary Companies
Charity Registration Number 255922
NOTES TO THE CONSOLIDATED AND CHARITY ACCOUNTS – 31 MARCH 2023 (Continued)
13. FUNDS OF THE GROUP/CHARITY
| Group Funds | ||||
|---|---|---|---|---|
| Unrestricted | ||||
| Revaluation | General | |||
| Reserve | Reserve | Total | ||
| £ | £ | £ | ||
| Group Assets owned at 1 April 2022 | 6,230,980 | 5,626,854 | 11,857,834 | |
| Incoming Resources | - | 1,098,271 | 1,098,271 | |
| Outgoing Resources | - | (981,861) | (981,861) | |
| - | - | - | ||
| Group Assets owned at 31 March 2023 | 6,230,980 | 5,743,264 | 11,974,244 | |
| ======= | ======= | ======== | ||
| Charity Funds | ||||
| Unrestricted | ||||
| Revaluation | General | |||
| Reserve | Reserve | Total | ||
| £ | £ | £ | ||
| At 1 April 2022 | 6,230,980 | 5,626,854 | 11,857,834 | |
| Net Incoming/(Outgoing) Resources | - | 116,410 | 116,410 | |
| Other Gains/(Losses) | - | - | - | |
| At 31 March 2023 | 6,230,980 | 5,743,264 | 11,974,244 | |
| ======= | ======= | ======== | ||
| 14. | RECONCILIATION OF NET GROUP | MOVEMENT | ||
| Unrestricted | ||||
| Revaluation | General | |||
| Reserve | Reserve | Total | ||
| £ | £ | £ | ||
| Group Assets at 1 April 2022 | 6,230,980 | 5,626,854 | 11,857,834 | |
| Net Incoming/(Outgoing) Resources | 116,410 | 116,410 | ||
| Other Gains/(Losses) | - | - | - | |
| Group Assets at 31 March 2023 | £6,230,980 | £5,743,264 | £11,974,244 | |
| ======= | ======= | ======== |
Page 21
THE JOSHUA TRUST
and its Subsidiary Companies
Charity Registration Number 255922
NOTES TO THE CONSOLIDATED AND CHARITY ACCOUNTS – 31 MARCH 2023 (Continued)
15. RELATED PARTY TRANSACTIONS
During the year, the majority of the Charity’s Investment Property portfolio was managed by the Trustees. This service was provided at no charge. The expense in the Accounts for Management Charges of £11k (2022: £7k) relates to properties that it is not practical due to their remote geographical locations for the Trustees to manage and hence they are managed by independent third-party managers.
The Charity received Donations from the following Related Parties:
| 31 March | 31 March | |
|---|---|---|
| 2023 | 2022 | |
| £ | £ | |
| Grand Investments (City) Limited | 5,000 | - |
| Terrace Limited – 1068555 | 35,000 | 20,000 |
| £40,000 | £20,000 | |
| ===== | ==== |
Two of the Trustees have material interests in and are Directors of the above-named Company.
One of the Trustees of Terrace Limited is also a Trustee of The Joshua Trust.
During the year, the Charity gave Donations to the following Related Parties:
| 31 March | 31 March | ||
|---|---|---|---|
| 2023 | 2022 | ||
| £ | £ | ||
| The Eliezer Foundation – | 1126142 | £12,000 | £13,000 |
| ===== | ==== |
The Charity is run by the sister-in-law of two of the Charity’s Trustees and her son.
16. PROVISION OF NON-AUDIT SERVICES BY OUR AUDITORS
In common with many other entities of our size and nature we use our Auditors to prepare and submit returns to the Charity Commission and assist with the preparation of our Accounts.
17. TRUSTEES’ EXPENSES
There were no expenses or remuneration paid to the Trustees in the current or preceding year.
18. STAFF COSTS
Details of staff costs are included within Note 6 above. The Charity has 8 employees including the unpaid Trustees ( 2022: 8 )
Page 22
THE JOSHUA TRUST
and its Subsidiary Companies
Charity Registration Number 255922
CHARITY ONLY STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 MARCH 2023
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| INCOMING RESOURCES | ||
| Incoming Resources from Generated Funds | ||
| Voluntary Income | 347,297 | 371,770 |
| Investment Income | 658,166 | 715,624 |
| Other Incoming Resources | - | - |
| Total Incoming Resources | 1,005,463 | 1,087,394 |
| __ | ____ | |
| RESOURCES EXPENDED | ||
| Raising Funds | (126,853) | (164,309) |
| Charitable Expenditure | (751,500) | (793,500) |
| Other Expenditure | (10,500) | (10,500) |
| Total Resources Expended | (888,853) | (968,309) |
| __ | ___ | |
| Gains/(Losses) on Disposal of Revalued Investments | - | - |
| _ | ___ | |
| NET INCOMING/(OUTGOING) RESOURCES | 116,610 | 119,085 |
| Gains/(Losses) on Revaluation of Investments | (200) | (1,641) |
| Other Gains/(Losses) | - | - |
| Net Movement in Funds | 116,410 | 117,444 |
| TOTAL FUNDS BROUGHT FORWARD | 11,857,834 | 11,740,390 |
| TOTAL FUNDS CARRIED FORWARD | £11,974,244 | £11,857,834 |
| ======== | ======= |