THE JERUSALEM TRUST ANNUAL REPORT 5 APRIL 2021 The P&4¢ S ￿ltOn Rc London Slhllv 1AP CONTENTS PAGE The Report of the Trustees 2-10 Statement of Trustees, Responsibilities Independent Auditors. Report 12-14 statement of Financial Activtltes 15 Balan￿ Sheet 16 Cash Flow Statement 17 Notes to the Accounts 18-25 THE JERUSALEM TRUST 5 April 2021 Legal and Administrative The Jerusalem Trust (No. 285696) was established under a Trust Deed dated 28 September 1982 and became a registered charty on 13 December 1982. Trustees Lady Susan Sainsbury The Rt Hon Sir Timothy Sainsbury Mr Mark Browning Prof Peter Frankopan Mr Colin Harbidge Mrs Melanie Townsend Mr David Wright Registered Office The Peak 5 Wilton Road London SW1V 1AP Principal Officers Mrs K Everett Ms V McLachlan Mr BM Woodruff Ms R Tiley Chief Operating Officer Executive Executive Executive Bankers Child & Co 1 Fleet Street London EC4Y 1 BD Solicitors Portrait Solicitors 21.Whitefriars Street London EC4Y 8JJ Auditors Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW Investment Advisers Sarasin & Partners Juxon House 100 St Paul's Churchyard London EC4M 8BU Report arKI ￿unts-sApri1 2021 THE JERUSALEM TRUST 5 April 2021 Investment Powers The Trust Deed empowers the Trustees to appoint investment advisers, who have discretion to invest the funds of the Trust within guidelines established by the Trustees. The objects of the Twst as given in the Trust Deed are.. i) to or for Ihe advancement of the Christian religion and the promotion for charitable purposes only of any Christian body or organisation., ii) to or for the advancement of Christian education and learning., iii) to or towards or for the benefit of such one or more charitable purposes or charitable institulions as shall be supported, undertaken or effected by any Christian body or organisation at such time or times in such manner and in such proportions as the Trustees may from time to time at their discretion detemiine. anisation The Trust is one of the Sainsbury Family Charitable Trusts (SFCT), which share a common administration. Trustees are appointed by the Settlor, with the exception of one Trustee who is appointed by the Bishop of Winchester. All Trustees are provided with relevant information relating to their responsibilities as Trustees. Trustees are aware of the Charity Governance Code published in 2017 which sets out the principles and recommended practi￿ for good governance within the sector. The Charity has reviewed its governance arrangements against the principles within the code and believes that it is compliant with the code whilst maintaining its need to operate its governance efficiently. The remuneration of the senior staff (including key management personnel} is reviewed by the Chairman on an annual basis taking into account the requirements of their role and performance during the year. From time to time the SFCT Management Committee benchmarks pay levels against the comparable positions in similar organisations. The Trust and its Trustees are fully aware of the requirements and duties set out in the Charities (Protection and Social Investment) Act 2016. The Trust does not raise funds from the public and as such has no fundraising activities requiring disclosure under Sl 62A of the Charities Act 2011. The Trustees are responsible for the overall direction and supervision of the Jerusalem Trust- they set the Trust's strategy, review proposals and approve grants. The Trustees delegate day- to￿aY operations to the Trust's Lead Executive, Victoria McLachlan. Policies During the period the Trustees considered proposals under the following categories- Christian Education Christian Evangelism and Relief Work Overseas Christian Media Evangelism and Christian Mission in the UK Christian Art Rep￿t and Accounts- SApril 2021 THE JERUSALEM TRUST 5 April 2021 Proposals are generally invit8d by the Trustees or initiated at their request. Trustees do not normally make grants towards building or repair work for churches and grants are not normally made to individuals. There have been no significant changes in the grant making policies of the Trust over the period under review. However, their Education and Media categories have been under review. The Covid-19 pandemic also elicited a temporary emergency support grant programme for current grantees in particular need. Reserves Pollc It is the policy of the Trustees to approve grants for payment over a period of years, subjed to certain conditions over the life of the grant. Those expected to be paid within ￿e1ve months of the year end are accrued in the accounts, whilst those due to be paid later than this are not accrued. These are referred to in note 4 to the accounts and amount to £1,012,000. They represent funds eam)arked for conlinued support to certain existing beneficiaries, although formal commitments have not yet been made. Cash flow projections for income and expenditure are regularly reviewed to ensure that the level of available resources is adequate and that the Trust is in a position to meet all its commitments. The Trustees Consider thatwhen possible it is appropriate to hold free funds, both to meetlhe short- term working capital needs of the Trust and in anticipation of the potential payment of subsequent grant instalments. In the unlikely event that the Trustees find themselves unable to meet current commitments from unrestricted reserves, they would be willing to draw on expendable endowment in order to meet those commitments as they see fil. As at 5 April 2021, the Trust held total funds of £114.76 million, comprising of an expendable endowment fund of£114.25 million and unrestricted reserves of £510k. Investment Polic and Performance TrLSStees meet with their investment managers regularly to discuss investment strategy and also to seek to ensure that the Trust's income requirements are met, and that long term capital growth is In line with relevant indices. The Trustees normally hold investments for the long lerm and look principally to income for their grant making, supplemented by the use of capital where required. The Trust's main portfolio rose in value over the past 12 months, producing a total retum rset of all costs of +27.7 % as markets rebounded from their March 2020 nadir on the back of supportive monetary and fiscal policy provided by governments and central banks globally. Performance was well ahead of the portfolio's long-term UK CPI +4OA target, which rose +4.5 % over the period. Having outperformed its composite benchmark in recent years, the portfolio's relative perfomian this year was more challenging despite the strong absolute return, with the composite benchmark rising +29.8 %. This is attributed to the market leadership of cyclical sectors catalysed in November 2020 by positive vaccine announcements, presenting a challenge for our thematic investment process which naturally leads us to invest in higher quality, sustainable growth opportunities than those favoured by the market in the second half of the year. Elsewhere in the portfolio. bonds, alternative investments and commercial propety all generated positive returns. Report Accwnls- 5Awl 2021 THE JERUSALEM TRUST 5 April 2021 A total of 300,000 J Sainsbury shares were sold in De￿rnber 2020 and January 2021 at an average price of £2.36. The shares generated a total shareholder return of +22 % for the year, behind the wider UK equity market retum of +320kn. As at 5 April 2021, J Sainsbury shares represented 6.10/0 of the Trust's value. The Trust re￿iVed £3,076,424 of income over the twelve-month period. No capital was withdrawn. Risk Assessment The Trustees have examined the major stralegic, business and operational risks to which the Trust may be exposed. Through the joint office of the Sainsbury Family Charitable Trusts, adequate systems are in place to meet such potential risks as the Trustees.have identified. The Trustees continue to be vigilant and to keep processes under review. The Trustees identified the uncerlainty of financial retums to constitute the charity's major financial risk. This is miligated by having a diversified financial portfolio under the management of a major investment house. The Trustees regularly review investment strategy and monitor financial perfomiance. They also operate a grant distribution formula which helps to ensure the stability of resources available for grant awards in any given year. Another major risk is a misuse of funds by a grantee charity. To mitigate this risk the Trustees normally restrict grants to charities registered with the Charity Commission or equivalent bodies. The awards are made following a thorough assessment and grants are regularly monitored., multi- year grants are paid only on receipt of satisfactory progress reports. Chari and Public Benefit Trustees are aware of the Charity Commission guidance on Public Benefit and confirm that they have complied wtth the duty in Section 17 ofthe Charities Act 2011 to have due regard to it. They Consider the full inforrnation which follows in Ihis annual report, about the Trust's aims, activities and achievements in the many areas of interest that the Trust supports demonstrates the benefit to its beneficiaries, and through them to the Public, Ihat arise from those aGtivities. Review of the Past Perlod The Trustees met four times during the year to make grants and a further twice to review investment activity. The asset value ofthe Trust increased by 24% from £92.6 million at 5 April 2020 to £114.8 million at 5 April 2021. The net unrestricted income of the Trust for the year after charging grant related support costs was £2.8 million compared to £2.8 million for the year to 5 April 2020. Trustees have decided that the best way of benchmarking the expenses incurred in running the charity is to measure these costs relative to its day to day activity of grant-making, as income alone is an unsuitable benchmark for charitable activity. On that basis, grant related support costs represented 11 yo of the value of grants paid, which totalled £2.4 million. Report and Accounts- S April 2021 THE JERUSALEM TRUST 5 April 2021 The grants approved may be analysed by number and by value in the categories set out below.. Grants Approved Value Chrlstian Education Christian Evangelism and Relief Work Overseas Christian Media Evangelism and Christian Mission in the UK 200,000 437,600 1,195,500 1,560,000 3,393.100 24 10 105 140 GRANTS APPROVED CHRISTIAN EDUCATION - £200 000 Trustees. priority areas in this category are as follows.. The development ofchristian education and curriculum materials for schools in RE and other subjects,. The support of RE as a subject, both curriculum development and support for RE teachers and teacher training; The support, training and retention of Christian teachers in all subjects and lay training. Projects which encourage Christians in leadership in schools; Adult and lay education. In 2020121, Trustees initially committed 320fi of their budget to Christian Education. However, as this category was under review, they agreed to suspend the majority of grant-making in this area until a new strategy is approved. Small grants to Schools for Christian RE materials -£200,000 Towards the Jerusalem Trust RE Small Grants Scheme. CHRISTIAN EVANGELISM AND RELIEF WORK OVERSEAS - £437 600 Trustees, priority areas in this category are as follows.. Christian relief and development work overseas; Support for theological training colleges- Capacity building of local churches., The translation of Christian literature; The support of persecuted Christians. The Trust's geographical focus areas are Anglophone sub-saharan Africa and Ethiopia, Jordan, Syria, Lebanon. Egypt, Iraq and Iran. TheTrustees regularly review theirgeographical priority areas. In 2020121, Trustees committed loo￿ of their budget to Christian Evangelism and Relief Work Overseas. Report and Accounts- 5 April 2021 THE JERUSALEM TRUST 5 April 2021 Arab World Ministry of Pioneers- £10,000 Towards Christian health and nutrition project in Jordan Catholic Agency for Overseas Development (CAFODI . £25,000 Towards resilient community building in Sierra Leone Christian Solidarlty Worldwide - £21,SOO £21,500 towards supporting persecuted Christians Dignity - £9,750 Towards digitising discipleship resources Iraqi Christians in Neod - £9,350 Towards education support project in Baghdad Mosalc Mlddle East- £20,000 Towards the Olive Tree Centre. Amman Reach Beyond - £10,000 Towards VOX Radio HQ Salnt's Projects Trust- £10,000 Towards House of Hope Church Starfish Asia - £10,000 Towards Scholarship Fund, Pakistan Tearfund - £140,000 Towards four projects in Ethiopia, Malawi, Zimbabwe and East and Central Africa with the split to be determined by Tearfund Christian Evan elism and Rg1i8f Work Overseas CV-19 emer enc rants.. Catholic Agency for Overseas Development (CAFOD) - 2 grants totalling £60,000 Chrlstian Solidarity Worldwlde-£10,000 Foundatlon for Relief & Reconciliation in the Middle East- £10,000 Mission Aviation Fellowship - £15,000 Mosaic Middle East- £20,000 Open Doors with Brother Andrew - £10,000 Tearfund - £35,000 A further six smaller grants were awarded totalling £12,000. Repthl and At(x)unts-5April 2021 THE JERUSALEM TRUST 5 April 2021 CHRISTIAN MEDIA - £1195 500 Trustees, priority areas in this Category are as follows.. Media projects that promote Christianity in the UK, North Africa and the Middle East., Supporting training and networking projects for Christians working professionally in all areas of the media and for those considering media careers., The use of digital media and the internet for creative ways to promote Christianity. Trustees committed 140A of their budget to Christian Media. Crown Jesus Ministries - £10,000 Towards digital project and equipment for online resou￿ hub Jerusalem Productlons - £1,020,000 over three years Towards the core staffing and resourcing of JPL LtdlFour8Media Middle East Media - £50,000 over two years Towards three media projects in the Middle East Passion Trust- £40,000 over two years Towards Easter 2021 and 2022 Passion plays Premier Christian Media Trust- £40,000 over two years Towards Leap of Faith digital literacy Project Saltmine Trust-£20,000 Towards The Liberator theatre production Christian Media CV-19 emer enc rants.. SAT 7 Trust Ltd- Oxford - £10,000 A further three smaller grants were awarded totalling £5,500. EVANGELISM AND CHRISTIAN MISSION IN THE UK- £1560 000 The trustees, priority areas in this category are as follows: Christian projects that work with children and young people, in particular those working with children who have little or no contact with the churGh- Support for youth work and projects with young adults", Evangelistic projects, especially new and emerging evangelists., Work with prisoners, ex-prisoners and their families. In 2020121, Trustees committed 410/0 of their budget to Evangelism and Christian Mission in the UK. Alpha International - £160,000 over two years Towards Alpha core costs, and the Alpha evangelism course in the UK. Repcrt and Ac¢ount$- SApdl 2021 THE JERUSALEM TRUST 5 April 2021 Bethany Christian Trust- £10,000 Towards women prisoners, project Christians Against Poverty - £90,000 over three years Towards core costs and expansion Evangelical Alliance - £60,000 over two years Towards EA Gospel.. Young Adult Conversation Fusion - £30,000 over two years Towards ¢ore Gosts Hope Into Action - £60,000 over iwo years Towards core costs London Institute for Contemporary Christianity- £60,000 over three years Towards the Sustaining Transfomiative Disciples Project Luls Palau Evangelistic Association - Europe - £40,000 Towards core costs Or¢hards - £10,000 Towards counselling and casework Parliamentary Christian Fellowshlp Trust- £5,000 Towards Senior Parliamentary Officer Salary Prison Advice & Care Trust (PACT) - £135,000 Towards the Just People project Sandes Soldiers, and Airmen's Centre - £40,000 over two years Towards core costs St Luke's Healthcare for the Clergy - £10,000 Towards mental health support and resilience resources St Mary's Andover - £120,000 over three years. Towards Gore costs Urban Expression - £90,000 over three years Towards core costs Urban Saints - Crusaders - £40,000 Towards core costs and expansion Youth for Christ in Britain- British Youth for Christ- £150.000 over three years Towards the delivery of the urban strategy Report and AccoLnts- 5 Aprfl 2021 THE JERUSALEM TRUST 5 April 2021 Evan elism and Christian Mission in the UK CV-19 eme enc rants.. Andover Foodbank- 2 grants totslling £5,000 Baby Basics - £10,000 Basingstoke Foodbank - 2 grants totalling £10.000 Beyond the Streets - £10,000 Bible Reading Fellowship- £10.000 Changing Tunes- £10,000 Church Action on Poverty - £20,000 Church Army - £20,000 Church Revitalisation Trust- £20,000 Churches in Reading Drop-in Centre - £5,000 Clapham Park Foodbank - £5,000 Emmaus- Oxford - £1,000 Faithworks Wessex - £2,000 Fegans - £10,000 Good Neighbours Network - £1,000 Hereford Foodbank- 2 grants totalling £5,000 Holy Trinity Church, Brompton -£5,000 Home for Good - £10,000 Hope Into Actlon - £10.000 Kintsugl Hope - £10,000 Leeds City Mission - £5,000 Linking Lives UK - £5,000 Message Trust - £15.000 One Church, Brighton - £5,000 Report and A¢¢ounts- SA￿1 2021 THE JERUSALEM TRUST 5 April 2021 Oxford Food Hub- £1,000 Readifood - £5,000 Safe Families for Children - £10,000 Salvation Army - £25,000 SCRATCH - Southampton City and Region Action to Combat Hardship- £2.000 St Andrew's Church, Oxford - £1.000 st Mary's Southampton - £15,000 St Michael's Church, Wimbledon - £6,000 St Swithun's, Bournemouth - £15,000 Swindon Food Collective - £5,000 Transfomiing Lives for Good - £10.000 Trussell Trust - £25,000 Wandsworth Foodbank - £5,000 West Berks Foodbank - £5,000 Witney & West Oxfordshire Foodbank - £2,000 XLP - £10,000 Youth for Christ in Britain - British Youth for Christ- £10,000 Youthscape - £10,000 A further forty-three smaller grants were awarded tolalling £80,000. GRANTS CANCELLED Grants totalling £120,000 were cancelled, refunded or amended during the period. Future Plans The Trust will continue to support the activities set out on page 4 by the award of grants. However, the Trustees are committed to considering a new grant-making strategy in 2021-22 which will not restrict the work of the Trust to the current budgets by category. Trustees will also consider supporting long standing beneficiaries to help them overcome the challenges of the Covid-19 pandemic. Report and Accounts-5 April 2tr21 10- THE JERUSALEM TRUST 5 April 2021 STATEMENT OF TRUSTEES, RESPONSIBILITIES FOR THE ACCOUNTS The Trustees are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable18w and regulations. Charity law requires the trustees to prepare financial ststements for each financial year in accordance with United ngdom Generally Accepted Accounting Practice (United Kingdom Aecounting Stsndardsl and applicable law. Under charity law the trustees musl not approve the financial statements unless they are satisfied that they give a true and fair view of the stste of affairs of the charity and of ils nel outgoing resources for that period. In preparing these financial ststements, the trustees are required to.. select suitable accounting policies and then apply them consislenlly- make judgments and estimates that are reasonable and prudent.. stste whether applicable accounting standards have been followed, subject lo any material departures di￿10$ed and explained in the financial statements- prepare the financial statements on the going concem basis unless it is inappropriate to presume that the charty will continue to operate. The trustees afft responsible for keeping proper accounting records that are suffieient to show and explain the charty's transactions and disclose with reasonable accuracy at any lime the financial position of the charity and enable them to ensure that the financial Statements Comply with the Charities Acl 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. Approved by the Board of Trustees on 14 October 2021 and signed on their behalf by ..TRUSTEE Lady Susan Sainsbury Report and Accounts- 5 April 2021 THE JERUSALEM TRUST 5 April 2021 Independent Auditor's Report to the Trusteos of The Jerusalem Trust Opinion We have audited the financial statements of The Headley Trust I'the charity'l for the year ended 5 April 2021 which comprise the Statement of Financial Aclivilies, the Balan￿ Sheet, the Cash Flow Statement and notes lo the financial stalemenls, including signrficant 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 Stsndard applicable in the UK and Republic of Ireland (Unrted Kingdom Generally Accepted Accounting Praclicel. In our opinion the financial statements.. give a true and fair view of the state ofthe charty's affairs as al 5 April 2021 and of its income and expendf(ure, for the year then ended., have been properly prepared in accordance ¥Mlh Untted Kingdom GenerallyAccepted AccoL¢nting Pr8Ctlee'. and have been prepared in accordance wlh the requirements of the Charities Act 2011. Basis for opinlon We conducted our audst in accordance with International Standards on Audi(ing (UK) IISAS IUKII and applicable law. Our responsibilities under those stsndards are further described in the Auditorfs responsibilities for the audit of the financial slalements section of our report. We are independent ofthe charity in accordance with the ethical requirements that are relevant lo our audit of the finanaal slalemenls in the UK. including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is suffiaenl and appropriate to provide a basi$ for our opinion. Concluslons relating to going concem In auditing the financial stslemenls. we have concluded that the trustee&apos,'s use of the going concern basis of accounting in the preparation of the financial slalemenls is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or eondbtions that, individually or collectively, may cast significant doubl on the charity&apos,'s ability lo continue as a going concern for a period of al least tWe￿e months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect lo going concern are described in the relevant sections of this report. Other information The Iruslees aro responsible for the other information Contained within the annual report. The other infomialion comprises the information included in the annual report, other than the finanaal statements and our auditor's report thereon. Our opinion on the financial slalemenls does not cover the other infomialion and, except lo 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 otheT information is materially inconsislenl with the financial slalements or our knowledge obtained in the audit or otherwise appears lo be materially misslaled. If we identify such material inconsistencies or apparent material misstatements. we are required lo determine whether this gives rise lo a material misstatement in the financial statements themselves. If. based on the work we have perfomied, we conclude that there is a material misstatement of this other information. we are required to report that fact. We have nothing trj report in this regard. Matters on whlch are required to rgport by exception We have nothing to report in respect of the following matters in relation lo wh￿h the Charities (Accounts and Reports) Regulations 2008 requires us lo report to you if, in our opinion.. the information given in the financial ststsments is inconsistent in any material respect wbth the trustees, report., or sufficient and proper accounting records have not been kept by the charty.. or the financial statements are not in agreement with the accounting records and returns; or we have not received all the infomiation and explanation$ we require for our audit. Report and Accounts- 5 Aprl 2021 12- THE JERUSALEM TRUST 5 April 2021 Responsibilities of trustees As explained more fully in the trustees. responsibilities sL*ement Set out on page 11, the trustees are responsible for the preparation of the finanei81 slalements and for being satisfied that they give a tfue and fair view, and for such internal control as the trustees determine is necessary lo enable the preparation of financial stslemenls that are free from material misslatemenl, whether due to fraud or error. In preparing the financial slalemenls, the Iruslees are responsible for assessing the charity's abilty to continue as going concern, disclosing, as applieable, matters related to going concem and using the going concern basis of accounting unless the trustees either intend lo liquidate the charity or lo cease operations, or have no realistic allernalive bul lo do so. Auditor's responsibilitles for the audit of the financial statements We have been appointed as auditor under section 151 of the Charitie5 Act 2011 and report in ac￿rdanCe with the Acts and retevant 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 misslatemenl, whether due lo fraud or error. and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, byt is not a guarantee that an audit conducted in accordance with SSAS IUKI will always detect 8 material rnisststement when it exists. Misstatements Can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasOr￿bIY be expected to influence the economic decisions of users taken on the basis of these financial statements. Details of the extent lo which the audit was considered capable of detecting irregularities, including fraud and non- compliance wth law5 and regulations are set out below. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.or .uklaudilorsres nsibililies. This description forms part of our auditor's report. Extgnt to whlch the audit wa$ ¢onsldered capable of detecting Irr•gulariligs, including fraud Irregularities, induding fraud, are instancgs of non-compliance with laws and regulations. We identified and assessed the risks of material misststemenl of the financial statements from irregularities. whether due to fraud or error. and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, ineluding obtaining audit evldence sufficient and appropriate to provide a basis for our opinion. We obtained an understanding of the legal and regulatory frameworks wthin which the charity operates, focusing on those laws and regulations that have a direct effect on the deteTmination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 together wf(h the Charities SORP IFRS 1021. We assessed the required compliance with these laws and regulations as part of our audf( procedures on the related financial statement items. In addf(ion, we consKlered provisions of othei laws and regulations that do not have a direel effect C￿ the financial statements bul compliance with which might be fundamental to the charity's ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity for fraud. The law5 and regulations we considered in this context for the UK operations were General Dats Protection Regulation IGDPR). Auditing stsndards limit the required audit procedures to identify non-compliance with these laws and regulations lo enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any. We identified the greatest risk of material impact on the financial statements from l￿egUlarlties, including fraLKI, to be within the override ol controls by management. Our audit procedures to respond lo these risks included enquiries of managernenl about their own identrficalion and assessment of the risks of irregularilie5, sample testing on the posting of journals, reviewing accounting estimates for biases, Teviewing regulatory correspondence with the Charity Commission and rea¢Jing minutes of meetings of those charged with governance. Owing lo the inherent limitations of an audit. there 1$ an unavoidable fisk that we may not have detected some material misstslements in the financial ststements. even though we have properfy planned and performed our audit in accordance with auditing standards. For example. the further removed non-compliance with laws and regulations lirregulariliesl is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identfy it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may invofve collusion, forgery, intentional omissions, misrepresentations, or the overrmle of intemal controls. We are not responsible for preventing non-compliance and cannot be expected to delect non-compliance with all laws and regulations. Report and A¢c(xJnl$-5 April 2021 13- **THE JERUSALEM TRUST 5 April 2021** ## **Use of our report** This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we.are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. ## **Crowe U.K. LLP** Statutory Auditor London Date 13 December 2021 Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. Report and Accounts - 5 April 2021 - 14 - THE JERUSALEM TRUST 5 April 2021 STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2021 Unrestricted Expendable Funds Endowment £'ooo £'ooo Total Funds 2021 £'ooo Notes 2020 Income IrKorrE from irNeslrrErt5 Donations aTrJ gifts 3.079 3,079 2,996 27 Total income and endowments 3.079 3.079 3,023 Expenditure Cost of raising funds Investment management costs 403 Charitable activ7ties Granl-makiro.. Grant ewendibjre Grart relaled SLPPOrt costs 2,409 265 2.409 265 2,939 265 Cost of grant-making 2,674 2,674 3,204 Total expenditure 2.674 3,118 3.607 Net operating Ideftclt) 405 {4441 1391 (584) Excharge gaIr￿/(loSSesI N*1 gain￿{19S$es) on in￿stMentS 1.554 20,635 1,554 20,635 (720) (6. 165) Net movement in funds 405 21,745 22.150 (7,469) Reconciliation of funds Total f￿K1$ bro￿h1 forward Total ILTKIS carried forward 105 510 92,503 114.248 92,608 114,758 100,077 92.608 The TrJles on pages 17 to 24 form part of these accounts. Report and Accounts- SA￿11 2021 15- THE JERUSALEM TRUST 5 April 2021 BALANCE SHEET AS AT S APRIL 2021 Notes 2021 rooo 2020 £'ooo £'ooo FIXED ASSETS Targible fixed assets Irwestments 23 116,476 116,499 94,641 94, 652 CURRENT ASSETS Debtors Cash at ba￿ atyl in hand 162 1,005 1,187 731 1,026 1, 757 CURRENT LIABILITIES Creditors - amoLnts fallirg due withni 1 year 10 2,908 3.801 NET CURRENT LIABIUTIES {1,7411 (2.044) NET ASSETS 114.758 92, 608 CAPITAL FUNDS E>peTrJable endowment 11 114,248 92.503 INCOME FUNDS Urweslricted fu￿lS 11 510 105 114.758 92,608 Thg finawal statements were approved arKI aL*trK*rised for issue by the Trustees on 14 October 2021 and were SIg￿d on ttrEir behaK by '. RLETEE Lady Susan Sainsbury notes on pages 17 to 24 form part of these accoLnts. Report and Accounts- SA￿12021 16- THE JERUSALEM TRUST 5 April 2021 CASH FLOW STATEMENT FOR THE YEAR ENDED 5 APRIL 2021 2021 £'ooo 2020 Cash floME from operating activities Net cash (used in) operating activitie8 1.6531 4,378 Cash flo￿% from investlng actlvltles Dimdends and interest Purchase of irNestments sa￿ of investments Net cash generated by Investlng activities 3,060 132.506) 33.439 3.993 3,072 (29, 516) 30. 005 3,561 Change in cash and Cash equlvalents In the year Cash and cash equivalents at the beginning of the year Cash and cash equlvalonts at the end of tho year (817) 3,574 2. 757 2,757 5,097 Reconciliation of net expenditure to net cash flow from optrratlng actfvitles 2021 £'ooo 22,150 120.6351 13,0601 228 2020 £'ooo (7,469) 6. 165 (3,072) (473) I movenEnt in funds las per the statement of fina￿la1 aclimtiesl IGainsllbsses on investments Dividernls and interest Exchawe gainslllosses} Depreciation charge Decrease in debtors IDecrease)lin¢rease in credi(or8 Fixed assets additions I cash (used inl operatiNJ aclmties 570 18941 1201 11,6531 273 193 (4.378) Anatysis of the balance of cash as shown in the balance sheet Change In ear £'ooo 1211 2,361 2,340 2021 £'ooo 1.005 4.092 5,097 2020 £'ooo 1,026 1,731 2,757 Cash at bank aNI in haTr Cash balances ￿ld by irweslrrEnl manager for reinvestment Report aThJ Aceoun15-5 April 2021 17- THE JERUSALEM TRUST 5 Aprll 2021 NOTES TO THE ACCOUNTS CHARITY INFORMATION The charty is l￿nCOrpOrated and reglstered li Erolard ard Wales with the CPArty Corm)ission Iregtstration nLmÈér 2856961. The address of registered Offi￿ is.. The Peak 5 Witton Road London SW1V 1AP 1. PRINCIPAL AccouwfiNG POLICES a) Basis of preparation The financial statetrErts beèn prepared in a￿01￿8￿• wf(h th8 CIHritÈs SORP IFRS10218pplic8bl& lo Charit￿$ prepariry tfEir accourrts in accordarce with F￿a￿la1 ReportiThJ Starnlard applcabk in UK a￿1 RepthlK of IreLand and the Ch8rf(*5 Act 2011 aryl UK Generally Accepted Practi￿ as it appl'e5 from 1 JaNary 2015. The fir0r￿lar statements have been prepared to Y￿è a true and fair ￿ew, aNJ have departed from thè Charitiès {Accounts and Reportsl Regulatiorts 21YJ8 onty to t1￿ exlent requred to promde a Irue and fair vievl. This departure has iNolved fdlowirKJ ACCO￿ling and Reporting by Charities prepariTrJ their accounts in accordarre with the Fina￿￿1 Reporting StarKlaid applicable in the UK aTrJ Reptrjlic of Ireland IFRS1021 isswl on 16 Juty 2014 rather t￿n the Accountiryj and Reporting by Cl￿rities.. Statement of Recommended PradKe effective from 1 April 2005 wtich has sirte been witmrawn. The Tru3t constitutes a public benefrt entity as defined by FRs1￿2. assessed Trust's finarrial position plans for foreseeable futLwe, the Trustees are satiSf￿d that it remairE appropriate to prepare flnartial slalements on tIE goiNJ cortern basls. The Ir￿eSt￿Ent portfolios have performed SIr￿9ty during tIE year arxl remied tIE redlrtion in Wal￿, ¢aused by inyact of the Covid-19 paThlernic, reported for last year. The ermlowrnert 8$5els of the Tr￿1 rerTHin 5tgrNfKant, and these will continLE to rètum i[￿0￿e to Trust. The level of incorlle generated by tlp portfolK)s has rK)w stabilised and the Trust wll contiThE to pay out to its benefKiaries in accordance with pro￿15￿)n3 of the Tru51 Deed. bl Income Income is slTh)wn gross, irdulirvj associated tax credht wlpss tax 50 ded￿ted ts ry)n5id&Ted irre¢x)veralle. Dlinde￿{S are included by reference to their due dates. Interest is recorded orty when it has been ￿￿￿ed. cl Expenditure Costs of generaling fuThls represert arrDLnls paid to the Trust's exter￿1 InveSt￿Ert adwsors. Charitable activities expeThJlture comprlses grants aThJ donatk)ns awarded by tIE Trustees In accordan¢e wth t criteria sel out in the TrLSt Deed, together w6th graF* related support costs. Grarts for which there is a legalfy biThJit¥J comrritff￿nl are accounted for wrtlin Staten*nt of FTh)artial Act￿tIes. Payments that are due wrthin one year ol the peTiod-end date are included witEMn grants payable in the St*erllerrt of Fir0￿la1 Actlirities. Oll*r gTant8 a￿ accounted lor in the Statemert of Finarrial ActI?Mt￿S wten conditiorts attaclif¥J to the grant are fUffil￿d. Grart related support costs represent staff. office aTrJ governar￿e costs ¥￿Jrred in ￿Tr￿gIr0 the grant award programrTE. dl Cost of admlnlstration These costs irtlude a share of the staff arKI office ￿515 of the joyrt offices of the Sainsbwy Famity CtrOrrtab￿ Tr￿St￿, wlich are allocated in proportK)n lo the time Spent on Tr￿1 matters arKI grant5 paid. tr} Govèrnarw costs G0vema￿e costs comprise all costs ifNolwiro the public ac£ountability of the charity and its cornpliarKe with reg￿atIon aThJ good practl¢e. T1*5e co815 iJKlude fees for slalLrtory aNI legal fees where relewanl. RekX)rt A Fund bala￿e3 al 5 April 2021 are represerted by: Tangible fixed assets Investments Current assets Current liabilrties Total net assets 23 116,476 11.13n 1.114 114.248 23 116,476 1,165 2,906 114,758 2.302 1,792 510 Movement Sn the year OpenirvJ balance as al 5 April 2020 105 92,503 92,608 Total income atyl endowments Cost of raisiro funds Cost of grant-makirg Nel gains on investments Cwrency exchange gains Clos*w balance as at 5 April 2021 3,079 3.079 1444) 12,6741 20,635 1.554 114,758 14441 12,6741 20,835 1,554 114,248 510 Comparatlve Unrestricted Expendable Funds Endowment £'ooo £'ooo Totals 2020 £'ooo FuThl bala￿eS al 5 April 2020 are represerted by.. Tangible fixed assets Investments Cwrent assets CLrrent liabilities Total net assets 11 94,641 1,757 3.8011 92.608 g4.641 15491 1,600 92.503 2.306 2,2011 105 Movement In the yeaT Opeiing baLgrrE as at 5 April 2019 286 99,791 100,077 Total income and etKlowment8 Cost of raising funds Cost of grant-makirg Net gains on inveslmerts Curren¢y e￿hange Ilossesllgair Clos1r￿ balatKe as at 5 April 2020 3,023 3,023 14031 (3,2051 (6,1651 17201 92,608 1403} {3.204) {6,165} 1720) 92,503 105 12. RELATED PARTY TRANSACTIONS Two Trustees of t￿ Jerusalem Trust are also DiTectors of Jerusalem Productions Limited. Two Trustees of Jerusalem Trust hokl one share each in the Jerusalem Productions Limited, a company incorporated arn1 registered in ETrJland (m. 024615431. Tr Trustees hold the shares of JPL in trust for the Trustees of the time being of the charty for ils charitable purposes. At the year e￿, an amount of £465,000 {2019120.. £380,000> was payable to Jerusalem Productions Limi(ed. Grarts tolalling £1,020,00012019120..£480,0001 were awarded by the Jerusalem Trust to the Jerusalem Productions Ltd dwirYJ the year. of which £680,000 was not accrued as expenditure al 5 April 2021. Reptyt Ac(t)unts- 5 April 2021 -24- THE JERUSALEM TRUST 5 April 2021 NOTES TO THE ACCOUNTS 13. COMPARATIVE ST ATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2020 Unrestricted Funds £'ooo Expendable Endowment £'ooo Total Funds 2020 £'ooo Income Irrome fr¢)m irNestments Othèr i￿orne 2.996 27 2.996 27 Total income and endowments 3,023 3.023 Expenditure Cost of ralslng funds Investment managemert costs 403 403 Charftable artI￿tIeS Granl-makirg.. Grant e￿e￿a(cure Grant related support costs 2,939 265 2,939 265 Cost of grant-maklng 3,204 3.204 Total expendiiure 3,204 403 3,607 Net operatlng deflclt (.181) 14031 15841 Ex¢haThJe {bssesllgains Net gairts on investmerts Trar￿fer$ between fur¥Js 17201 16.1651 17201 16,1651 Net movement kn funds {1811 (7,288} {7.469) Reconciliation of funds Total fuTrJ5 brought forward Total fuThJs carrEd forward 286 105 99,791 92,503 100,077 92.608 Report and Accounts- SAprl 2021 25-