## **THE JERUSALEM TRUST** ANNUAL REPORT AND FINANCIAL STATEMENTS 5 APRIL 2022 The Peak 5 Wilton Road London SW1V 1AP ## **CONTENTS** |||**PAGE**| |---|---|---| |**1**|Legal and Administrative|1| |**2**|The Report of the Trustees|2-8| |**3**|Statement of Trustees’ Responsibilities|9| |**4**|Independent Auditor’s Report|10-13| |**5**|Statement of Financial Activities|14| |**6**|Balance Sheet|15| |**7**|Cash Flow Statement|16| |**8**|Notes to the Accounts|17-25| **THE JERUSALEM TRUST 5 A p r i l 2 0 2 2** ## ## The Jerusalem Trust (No. 285696) was established under a Trust Deed dated 28 September 1982 and became a registered charity on 13 December 1982. |**Trustees**
**Registered**
**Office**
**Principal**
**Officers**
**Bankers**
**Solicitors**
**Auditor**
**Investment**
**Advisers**|Lady Susan Sainsbury
The Rt Hon Sir Timothy Sainsbury
Mr Mark Browning
Prof Peter Frankopan
Mr Colin Harbidge
Mrs Melanie Townsend
Mr David Wright
The Peak
5 Wilton Road
London SW1V 1AP
Mrs K Everett Chief Operating Officer
Ms V McLachlan Executive
Mr BM Woodruff Executive
Ms R Tiley Executive
Royal Bank of Scotland
119 - 121 Victoria Street
London
SW1E 6RA
Portrait Solicitors
21 Whitefriars Street
London EC4Y 8JJ
Sayer Vincent LLP
Invicta House
108 - 114 Golden Lane
London
EC1Y 0TL
Sarasin & Partners
Juxon House
100 St Paul's Churchyard
London EC4M 8BU| |---|---| Report and Accounts – 5 April 2022 - 1 - **THE JERUSALEM TRUST 5 A p r i l 2 0 2 2** ## **The Report of the Trustees** The Trustees present their report and the audited financial statements for the year ended 5 April 2022. Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the Trust deed, and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102. ## **Objects** The objects of the Trust as given in the Trust Deed are: - i) to or for the 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 institutions 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 determine. ## **Achievements and Performance** 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 Proposals are generally invited 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. Trustees will continue to consider extra support grants for current grantees in particular need due to the Covid-19 pandemic. Trustees agreed to release an extra £500,000 from capital in 2021/22 towards this. ## **Charity and Public Benefit** Trustees are aware of the Charity Commission guidance on Public Benefit and confirm that they have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to it. They consider the full information which follows in this 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, that arise from those activities. Report and Accounts – 5 April 2022 - 2 - **THE JERUSALEM TRUST 5 A p r i l 2 0 2 2** ## **Review of the Past Period** The Trustees met four times during the year to make grants and a further twice to review investment activity. The asset value of the Trust increased by 1% from £114.8 million at 5 April 2021 to £116.3 million at 5 April 2022. The net unrestricted income of the Trust for the year after charging grant related support costs was £2.5 million compared to £2.8 million for the year to 5 April 2021. 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% (2021: 9%) of the value of grants paid, which totalled £2.6 million (2021: £2.9 million) ## **Reserves Policy and Going Concern** It is the policy of the Trustees to approve grants for payment over a period of years, subject to certain conditions over the life of the grant. Those expected to be paid within twelve 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 £1.339 million (2021: £1.012 million). They represent funds earmarked for continued 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 that when possible it is appropriate to hold free funds, both to meet the short-term working capital needs of the Trust and in anticipation of the potential payment of subsequent grant instalments. In the 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 fit. As at 5 April 2022, the Trust held total funds of £116.3 million (2021: £114.8 million), comprising of an expendable endowment fund of £115.7 million (2021: £114.3 million) and unrestricted reserves of £640k (2021: £510k). ## **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. ## **Investment Policy and Performance** Trustees 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 term 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 return net of all costs of +4.9% which was behind the composite benchmark of +8.7%. This has largely been because of the sharp market rotation out of favoured growth stocks into lower quality cyclical Report and Accounts – 5 April 2022 - 3 - **THE JERUSALEM TRUST 5 A p r i l 2 0 2 2** companies and the lack of oil and gas exposure in the portfolio, which we do not consider to be long-term investments. Whilst the past 12-month performance has been relatively weaker, performance over the 3 and 5 year period remain comfortably ahead of the long-term CPI +4% target and the peer group, as measured by the ARC Charity Steady Growth Index. A total of 75,000 J Sainsbury shares were sold in August of 2021 at a price of £3.24. The shares generated a total shareholder return of +8.6% for the year, behind the wider UK equity market return of +15.5%. As at 5 April 2022, J Sainsbury shares represented 5.7% of the Trust’s investment value. The Trust received £2.8 million of income over the 12-month period. No capital was withdrawn. ## **Risk Assessment** The Trustees have examined the major strategic, 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 uncertainty of financial returns to constitute the charity's major financial risk. This is mitigated by having a diversified financial portfolio under the management of a major investment house. The Trustees regularly review investment strategy and monitor financial performance. 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; multiyear grants are paid only on receipt of satisfactory progress reports. ## **Organisation** 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 updated in 2020 which sets out the principles and recommended practice 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 s162A of the Charities Act 2011. Report and Accounts – 5 April 2022 - 4 - **THE JERUSALEM TRUST 5 A p r i l 2 0 2 2** The Trust does not undertake fundraising from the general public and does not use professional fundraisers or commercial participators. The income of the Trust is not bound by any regulatory scheme, and the Trust does not consider it necessary to comply with any voluntary code of practice relating to fundraising. We have received no complaints in relation to any fundraising activities. As we do not approach individuals for the purpose of raising funds, we do not have specific requirements related to fundraising activities, nor do we consider it necessary to design specific procedures to monitor such activities. 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 dayto-day operations to the Trust’s Lead Executive, Victoria McLachlan. ## **Grants Approved** The grants approved may be analysed by number and by value in the categories set out below: |Christian Education
Christian Evangelism and Relief Work Overseas
Christian Media
Evangelism and Christian Mission in the UK
Christian Art|**Grants**
**Value**
**Approved**
**£**
8 325,849
22
915,260
10
399,800
71
2,002,740
2
40,000
113
3,683,649| |---|---| ## **CHRISTIAN EDUCATION - £325,849** Trustees’ priority areas in this category are as follows: - The development of Christian 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. Grants approved in this category were to: ## **Cambridge Theological Federation (CTF) - £10,000 Evangelical Alliance - £90,000 Humanitarian Aid Relief Trust – HART - £10,000 Small grants to Schools for Christian RE materials - £200,000** A further four smaller grants were awarded totalling **: £15,849** Report and Accounts – 5 April 2022 - 5 - **THE JERUSALEM TRUST 5 A p r i l 2 0 2 2** ## **CHRISTIAN EVANGELISM AND RELIEF WORK OVERSEAS - £915,260** 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. The Trustees regularly review their geographical priority areas. **Bible Society - £57,000 Caritas Poland - £10,000 Catholic Agency for Overseas Development (CAFOD) - £20,000 Embrace the Middle East - £70,000 Innovista International - £10,000** **Medecins Sans Frontieres - Doctors without Borders - £10,000** **Mosaic Middle East (previously Foundation for Reconciliation in the Middle East) £50,000 Open Doors with Brother Andrew - £100,000 Tearfund - 2 grants totalling £440,000** _- Christian Evangelism and Relief Work Overseas CV 19 emergency grants:_ **Catholic Agency for Overseas Development (CAFOD) – £35,000 Mission Aviation Fellowship– £20,000 Mission Without Borders - £20,000 Tearfund – 2 grants totalling £55,000** A further seven smaller grants were awarded totalling: **£18,260** ## **CHRISTIAN MEDIA - £399,800** 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. ## **Biblica - £10,000** **Jerusalem Productions Ltd - £145,000 SAT 7 Trust Ltd – Oxford - £180,000 United Christian Broadcasters Ltd - £30,000 University of Durham - St John's College - £21,000** A further five smaller grants were awarded totalling: **£13,800** Report and Accounts – 5 April 2022 - 6 - **THE JERUSALEM TRUST 5 A p r i l 2 0 2 2** ## **EVANGELISM AND CHRISTIAN MISSION IN THE UK - £2,002,740** 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 church; - Support for youth work and projects with young adults; - Evangelistic projects, especially new and emerging evangelists; - Work with prisoners, ex-prisoners and their families. **Bible Reading Fellowship - £120,000 Bradford Cathedral - £30,000 Bringing Hope - £100,000 Bristol CCRC Trust - £120,000** **Changing Tunes - £30,000 Christians in Sport** - **£90,000 Church Army** - **£300,000 Creation Fest - £30,000 Crosslinks - £45,000 Eternal Wall of Answered Prayer - £100,000 Greater Manchester Community Chaplaincy - £10,000 Imago Dei Prison Ministry - £60,000 Luis Palau Evangelistic Association - £50,000 Nehemiah Project – London - £120,000 Mercy UK - £55,000 Oriel Ministries - £10,000 Safe Families for Children - £150,000 St Peter's in the City - £10,000 Swindon CCRC Trust - £120,000 The Welcome Directory - £10,000 Transforming Lives for Good - £50,000 Youthscape - £150,000** ## _- Evangelism and Christian Mission in the UK CV 19 emergency grants:_ **Baby Basics - £20,000 Housing Justice – £20,000 Inn Churches - £20,000 Message Trust - £20,000 New Life Community Church - £10,000 Salmon Youth Centre - £50,000 Stella Maris (previously Apostleship of the Sea) - £20,000** A further forty-two smaller grants were awarded totalling: **£82,740** ## **CHRISTIAN ART - £40,000** **Art in the Churches - £20,000 HMP Bronzefield - £20,000** Report and Accounts – 5 April 2022 - 7 - **THE JERUSALEM TRUST 5 A p r i l 2 0 2 2** ## **GRANTS CANCELLED** Grants totalling £3,000 were cancelled, refunded or amended during the period ## **Future Plans** The Trust will continue to support the activities set out on page 2 by the award of grants. Trustees will continue to support for long standing beneficiaries to help them overcome the challenges of the Covid-19 pandemic. Report and Accounts – 5 April 2022 - 8 - **THE JERUSALEM TRUST 5 A p r i l 2 0 2 2** ## **Statement of Trustees’ Responsibilities** Law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the charity's financial activities during the period and of its financial position at the end of the period. In preparing financial statements giving a true and fair view, the trustees should follow best practice and: - Select suitable accounting policies and then apply them consistently - Observe the methods and principles in the Charities SORP - Make judgements and estimates that are reasonable and prudent - State whether applicable UK Accounting Standards and statements of recommended practice 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 operation The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Approved by the Board of Trustees on 6 October 2022 and signed on their behalf by ……………………………………………TRUSTEE Lady Susan Sainsbury Report and Accounts – 5 April 2022 - 9 - **THE JERUSALEM TRUST 5 A p r i l 2 0 2 2** ## Independent Auditor’s Report to the Trustees of Jerusalem Trust ## Opinion We have audited the financial statements of the Jerusalem Trust (the ‘charity’) for the year ended 5 April 2022 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). - In our opinion, the financial statements: - Give a true and fair view of the state of the charity’s affairs as at 5 April 2022 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 - Have been prepared in accordance with the requirements of the Charities Act 2011 ## Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## Conclusions relating to going concern In auditing the financial statements, we have concluded that the 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 Jerusalem Trust’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## Other Information The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other Report and Accounts – 5 April 2022 - 10 - **THE JERUSALEM TRUST 5 A p r i l 2 0 2 2** information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Matters on which we are required to report by exception We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion: - The information given in the trustees’ annual report is inconsistent in any material respect with the financial statements; - 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 statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. ## Auditor’s responsibilities for the audit of the financial statements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Report and Accounts – 5 April 2022 - 11 - **THE JERUSALEM TRUST 5 A p r i l 2 0 2 2** Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below. ## Capability of the audit in detecting irregularities In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: - We enquired of management and the board of trustees, which included obtaining and reviewing supporting documentation, concerning the charity’s policies and procedures relating to: - Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance; - Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud; - The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations. - We inspected the minutes of meetings of those charged with governance. - We obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the charity from our professional and sector experience. - We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit. - We reviewed any reports made to regulators. - We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations. - We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. - In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business. 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 Report and Accounts – 5 April 2022 - 12 - **THE JERUSALEM TRUST 5 A p r i l 2 0 2 2** occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. ## Use of our report This report is made solely to the charity's trustees as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. ## 29 November 2022 Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006 Report and Accounts – 5 April 2022 - 13 - **THE JERUSALEM TRUST 5 A p r i l 2 0 2 2** ## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2022** |**_Notes_**
**Income**
Income from investments
**_2_**
**Total income**
**Expenditure**
**_Cost of raising funds_**
Investment management costs
**_3_**
**_Charitable activities_**
Grant-making:
Grant expenditure
**_4_**
Grant related support costs
**_5_**
**Cost of grant-making**
**Total expenditure**
**_8_**
Transfers between funds
**_11_**
**Net movement in funds**
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
**Net expenditure before net gains on**
**investments**
Exchange (losses)/gains
Net gains on investments|**Unrestricted**
**Expendable**
**Total Funds**
**Total Funds**
**Funds**
**Endowment**
**2022**
**2021**| |---|---| ||**£’000**
**£’000**
**£’000**
**_£’000_**
2,776
-
2,776
_3,079_| ||2,776
-
2,776
_3,079_| ||-
476
476
_444_| ||3,354
-
3,354
_2,409_
291
-
291
_265_| ||3,645
-
3,645
_2,674_| ||3,645
476
4,121
_3,118_| ||(869)
(476)
(1,345)
_(39)_
-
(847)
(847)
_1,554_
-
3,780
3,780
_20,635_
1,000
(1,000)
-
_-_| ||131
1,457
1,588
_22,150_
510
114,248
114,758
_92,608_| ||641
115,705
116,346
_114,758_| All of the above results are derived from continuing activities. There were no other recognized gains or losses other than those stated above. Report and Accounts – 5 April 2022 - 14 - **THE JERUSALEM TRUST 5 A p r i l 2 0 2 2** ## **BALANCE SHEET AS AT 5 APRIL 2022** |**FIXED ASSETS**
Tangible fixed assets
Investments
**CURRENT ASSETS**
Debtors
Cash at bank and in hand
**CURRENT LIABILITIES**
**Creditors -**amounts falling due within 1 year
**NET CURRENT LIABILITIES**
**NET ASSETS**
**CAPITAL FUNDS**
Expendable endowment
**INCOME FUNDS**
Unrestricted funds|**_Notes_**|**_Notes_**|**2022**
**£’000**
15
118,947
118,962



(2,616)
116,346
115,705
641
116,346|**_2021_**| |---|---|---|---|---| ||**_7_**
**_8_**
**_9_**
**_10_**
**_11_**
**_11_**|**£’000**
252
759||**_£’000_**
_23_
_116,476_| |||||_116,499_| |||||_162_
_1,005_| |||1,011
3,627||_1,167_
_2,908_| |||||_(1,741)_| |||||_114,758_| |||||| |||||_114,248_| |||||_510_| |||||_114,758_| The financial statements were approved and authorised for issue by the Trustees on 6 October 2022 and were signed on their behalf by : Report and Accounts – 5 April 2022 - 15 - **THE JERUSALEM TRUST 5 A p r i l 2 0 2 2** ## **STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 5 APRIL 2022** |**Cash flows from operating activities**
**Net cash (used in) operating activities**
**Cash flows from investing activities**
Dividends and interest
Purchase of investments
Sale of investments
**Net cash generated by investing activities**
**Change in cash and cash equivalents in the year**
**Cash and cash equivalents at the beginning of the year**
**Cash and cash equivalents at the end of the year**
**Reconciliation of net expenditure to net cash flow from operating activities**
Net movement in funds (as per the statement of financial activities)
(Gains) on investments
Dividends and interest
(Increase)/decrease in forward exchange contracts
Depreciation charge
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Fixed assets additions
Net cash (used in) operating activities|**2022**
**_2021_**
£'000
_£'000_
(4,393)
_(1,653)_
2,776
_3,060_
(37,566)
_(32,506)_
42,106
_33,439_
7,316
_3,993_
2,923
_2,340_
5,097
_2,757_
8,020
_5,097_
**2022**
**_2021_**
£'000
_£'000_
1,588
_22,150_
(3,780)
_(20,635)_
(2,776)
_(3,060)_
(62)
_228_
8
_8_
(90)
_570_
719
_(894)_
0
_(20)_
(4,393)
_(1,653)_| |---|---| ## **Analysis of the balance of cash as shown in the balance sheet** |**Analysis of the balance of cash as shown in the balance sheet**|| |---|---| |Cash at bank and in hand
Cash balances held by investment manager for reinvestment|**Change in**
**2022**
**2021**
**year**| ||£'000
£'000
£'000
759
1,005
(246)
7,261
4,092
3,169| ||8,020
5,097
2,923| Report and Accounts – 5 April 2022 - 16 - **THE JERUSALEM TRUST 5 A p r i l 2 0 2 2** ## **NOTES TO THE ACCOUNTS** ## **CHARITY INFORMATION** The charity is unincorporated and registered in England and Wales with the Charity Commission (registration number 285696). The address of the registered office is: The Peak 5 Wilton Road London SW1V 1AP ## **1. PRINCIPAL ACCOUNTING POLICIES** - **a) Basis of preparation** The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011. The financial statements have been prepared to give a 'true and fair view' and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view'. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. The Trust constitutes a public benefit entity as defined by FRS102. In the view of the Trustees, there are no material uncertainties casting doubt on the going concern of the charity. Having assessed the Trust's financial position and plans for the foreseeable future, the Trustees are satisfied that it remains appropriate to prepare the financial statements on the going concern basis. The endowment assets of the Trust remain significant, and the Trust will continue to pay out to its beneficiaries in accordance with the Trust's objects. **b) Income** Income is shown gross, including the associated tax credit unless the tax so deducted is considered irrecoverable. Dividends are included by reference to their due dates. Interest is recorded when it has been received. **c) Expenditure** Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Costs of generating funds represent amounts paid to the Trust's external investment advisors. Charitable activities expenditure comprises grants and donations awarded by the Trustees in accordance with the criteria set out in the Trust Deed, together with grant related support costs. Grants payable are made to third parties in furtherance of the charity's objects. Single or multi-year grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and that any condition attaching to the grant is outside of the control of the charity. The view of the trustees is that any instalments payable within 12 months of the reporting date are expected to be paid regardless of the status of attached conditions and so these are accrued. Any payments due in more than 12 months from the reporting date, where conditions exist that have not been met at the reporting date, are not accrued but are reported as an unaccrued future commitment. Grants approved subject to conditions that have not been met at the year-end are noted as a commitment but not accrued as expenditure. Grant related support costs represent staff, office and governance costs incurred in managing the grant award programme. They include a share of the staff and office costs of the joint offices of the Sainsbury Family Charitable Trusts, which are allocated in proportion to the time spent on Trust matters and grants paid. Contributions to defined contribution pension plans are charged to the statement of financial activities in the period to which they relate. Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include fees for statutory audit and legal fees where relevant. Report and Accounts – 5 April 2022 - 17 - **THE JERUSALEM TRUST 5 A p r i l 2 0 2 2** ## **NOTES TO THE ACCOUNTS** ## **1. PRINCIPAL ACCOUNTING POLICIES continued** ## **d) Investments** Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Any change in fair value will be recognised in the statement of financial activities. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/(losses) on investments” in the statement of financial activities. ## **e) Financial instruments** The Trust 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. Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. ## **f) Cash and cash equivalents** Cash and cash equivalents include cash at bank and in hand, cash held for reinvestment and short term deposits. ## **g) Fixed assets** Fixed assets are depreciated at rates which reflect their useful life to the Trust. Leasehold improvments are depreciated over the outstanding life of the lease at the time the work was completed. The following rates have been used: (2012) Leasehold improvements - 10% per annum (2021) Leasehold improvements - 14.28% per annum ## **h) Critical accounting judgements and key sources of estimation uncertainty** ln the application of the charity's accounting policies, which are described in note 1, Trustees are required to make judgements, estimates, assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects the current and future periods. ln the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets and liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year. Report and Accounts – 5 April 2022 - 18 - **THE JERUSALEM TRUST 5 A p r i l 2 0 2 2** ## **NOTES TO THE ACCOUNTS** ## **2. INCOME FROM INVESTMENTS** Income received on investments may be analysed as follows: ||
**2022**
**_2021_**| |---|---| ||**£’000**
**%**
**_£’000_**
**_%_**| |Government fixed interest
Other Fixed Interest
UK equities
Overseas equities
Alternatives
Property
Multi Assets
Interest|9
0
_173_
_6_
257
9
_250_
_8_
981
35
_742_
_24_
1,011
37
_1,535_
_50_
265
10
_204_
_7_
205
7
_137_
_4_
35
1
_34_
_1_
13
1
_4_
_0_| ||2,776
100
_3,079_
_100_| ||| ## **3. COST OF RAISING FUNDS** These costs relate to the investment manager's fees. The Trustees are of the opinion that these relate to the generation of a total return on the investment portfolio and, as such, have charged the Expendable Endowment with these fees. ## **4. GRANTS PAYABLE** |**Reconciliation of grants payable:**
Commitments at 6 April 2021
Grants not accrued at 6 April 2021
Grants approved in the year
Grants cancelled, refunded or amended
Grants not accrued at 5 April 2022
**Grants payable for the year**
Grants paid during the year
Commitments at 5 April 2022
**Commitments at 5 April 2022 are payable as follows:**
Within one year (note 10)|**2022**
**_2021_**|**2022**
**_2021_**| |---|---|---| ||**£’000**
**£’000**
**_£’000_**
**_£’000_**
2,683
_3,129_
1,012
_148_
3,684
_3,393_
(3)
_(120)_
(1,339)
_(1,012)_|| |||**3,354**
**_2,409_**
(2,636)
_(2,855)_
3,401
_2,683_
**2022**
**_2021_**
**£’000**
**_£’000_**
3,401
_2,683_| ## **Commitments** In addition to the amounts committed and accrued noted above, the Trustees have also authorised certain grants which are subject to the recipient fulfilling certain conditions relating to the delivery of the grant-funded activities. The total amount authorised but not accrued as expenditure at 5 April 2022 was £1,338,500 (2021: £1,012,000). This total will all be payable during 2023/24 and 2024/25. The Trustees are confident that these authorised amounts will be met from future income. A list of grants payable is included in Appendix A. Report and Accounts – 5 April 2022 - 19 - **THE JERUSALEM TRUST 5 A p r i l 2 0 2 2** ## **NOTES TO THE ACCOUNTS** ## **5. GRANT RELATED SUPPORT COSTS** |Staff costs
Share of joint office costs
Direct costs including travel
Depreciation
Legal and professional fees
Consultancy
Auditor's remuneration|2022
_2021_
Grant-
Governance
Total
_Total_
making| |---|---| ||£’000
£’000
£’000
_£’000_
185
3
188
_164_
73
-
73
_62_
4
-
4
_2_
8
-
8
_8_| ||270
3
273
_236_
9
-
9
_9_
-
-
-
_6_
-
9
9
_14_| ||279
12
291
_265_| The auditor's remuneration excluding VAT is £7,800. During the year no Trustee received any remuneration or reimbursement of expenses (2021: NIL). Included in the support costs for 2021 are governance costs of £17,312 which was comprised of staff costs of £3,560 and auditor's renumeration of £13,750. ## **6. ANALYSIS OF STAFF COSTS** |**ANALYSIS OF STAFF COSTS**|| |---|---| |Wages and salaries
Social security costs
Other pension costs|**2022**
**_2021_**| ||**£’000**
**_£’000_**
155
_134_
17
_14_
16
_15_| ||188
_163_| As mentioned in the Report of the Trustees, the Trust is one of the Sainsbury Family Charitable Trusts which share a joint administration at the Registered Office. 2.4% (2020/21:2.3%) of the total support and administration costs of these trusts have been allocated to the Jerusalem Trust, including a proportionate share of the costs of employing the total number of staff serving in the office in 2021/22. The average number of staff employed during the year was 10, all on a part-time basis (2020/21: 8). This equates to 1.9 full-time employees (2020/21: 1.7). Having regard to the small number of employees, the Trust considers its key management personnel to comprise of 4 part-time staff (2020/21: 4). The total employment benefits, including employer contributions to group personal pensions, of these key management personnel, were £122,435 (2020/21: £104,246). No employee earned in excess of £60,000 in either year. No trustee received any remuneration for their services during the current or prior year. ## **7. TANGIBLE FIXED ASSETS Leasehold Improvements** |**Cost**
At 5 April 2021
Additions
At 5 April 2022
**Depreciation**
At 6 April 2021
Charge for the year
At 5 April 2022
**Net Book Value**
At 5 April 2022
At 5 April 2021
|**2022**
**2021**| |---|---| ||**£’000**
**£’000**
72
52
-
20| ||72
72| ||49
41
8
8| ||57
49| ||| ||15
23| ||| ||23
11| Report and Accounts – 5 April 2022 - 20 - **THE JERUSALEM TRUST 5 A p r i l 2 0 2 2** ## **NOTES TO THE ACCOUNTS** ## **8. FIXED ASSET INVESTMENTS** |**FIXED ASSET INVESTMENTS**|| |---|---| |**Market value 5 April 2021**
Less: Disposals at proceeds
Add: Acquisitions at cost
Net gains on investments
**Market value 5 April 2022**
Forward exchange contracts
Investment cash
**Total investments**|**2022**
**_2021_**| ||**£’000**
**_£’000_**
112,376
_92,674_
(42,106)
_(33,439)_
37,566
_32,506_
3,780
_20,635_| ||111,616
_112,376_| ||70
_8_
7,261
_4,092_| ||118,947
_116,476_| The investments held as at 5 April 2022 were as follows: |
Fixed Income
UK Equities
Global Equities
Property
Alternative Investments
Multi Assets|
**2022**
**_2021_**| |---|---| ||Cost
Market
_Cost_
_Market_
Value
_Value_| ||**£’000**
**£’000**
**_£’000_**
**_£’000_**
11,251
10,573
12,311
12,629
25,002
24,258
18,919
23,574
38,919
52,766
38,982
57,808
5,700
6,441
3,469
3,641
13,644
16,052
11,240
13,148
1,490
1,526
1,490
1,575| ||96,006
111,616
_86,411_
_112,376_| Investments include the following holding at market value: U.K. Equities - J Sainsbury Plc - £6,739,378 (2020/21; £7,111,700) As part of the overall management of funds, the investment managers have entered into commitments to sell a total EUR 4,357,000, USD 23,131,600 and buy a total of USD 1,970,000 under forward rate contracts at 5 April 2022. (2021:to sell CHF 1,361,000, EUR 4,217,000 and USD 20,234,600). All contracts mature on 16 June 2022 and are included within investments as forward exchange contracts. ## **9. DEBTORS** |Other debtors
**10.CREDITORS - amounts falling due within one year**
Grants payable within one year
Professional charges
Other creditors|**2022**
**_2021_**| |---|---| ||**£’000**
**_£’000_**
252
_162_| ||252
_162_| ||**2022**
**_2021_**| ||**£’000**
**_£’000_**| ||3,401
_2,683_| ||6
_17_
220
_208_| ||3,627
_2,908_| Report and Accounts – 5 April 2022 - 21 - **THE JERUSALEM TRUST 5 A p r i l 2 0 2 2** ## **NOTES TO THE ACCOUNTS** ## **11. ANALYSIS OF NET ASSETS BETWEEN FUNDS** |
Fund balances at 5 April 2022 are represented by:
Tangible fixed assets
Investments
Current assets
Current liabilities
**Total net assets**
**Movement in the year**
Opening balance as at 5 April 2021
Total income and endowments
Cost of raising funds
Cost of grant-making
Net gains on investments
Currency exchange (losses)
Transfers between funds
Closing balance as at 5 April 2022

Fund balances at 5 April 2021 are represented by:
Tangible fixed assets
Investments
Current assets
Current liabilities
**Total net assets**
**Movement in the year**
Opening balance as at 5 April 2020
Total income and endowments
Cost of raising funds
Cost of grant-making
Net gains on investments
Closing balance as at 5 April 2021
**Comparative**
Currency exchange gains|**Unrestricted**
**Expendable**
**Totals**
**Funds Endowment**
**2022**| |---|---| ||**£’000**
**£’000**
**£’000**
-
15
15
-
118,947
118,947
3,301
(2,290)
1,011| ||(2,660)
(967)
(3,627)| ||641
115,705
116,346| ||510
114,248
114,758
2,776
-
2,776
-
(476)
(476)
(3,645)
-
(3,645)
-
3,780
3,780
-
(847)
(847)
1,000
(1,000)
-| ||641
115,705
116,346| ||**Unrestricted**
**Expendable**
**Totals**
**Funds Endowment**
**2021**| ||**£’000**
**£’000**
**£’000**
-
23
23
-
116,476
116,476
2,302
(1,135)
1,167
(1,792)
(1,116)
(2,908)| ||510
114,248
114,758| ||105
92,503
92,608
3,079
-
3,079
-
(444)
(444)
(2,674)
-
(2,674)
-
20,635
20,635
-
1,554
1,554| ||510
114,248
114,758| ## **12. RELATED PARTY TRANSACTIONS** Two Trustees of the Jerusalem Trust, Lady Susan Sainsbury and Mr. Mark Browning, are also Directors of Jerusalem Productions Limited. Two Trustees of Jerusalem Trust hold one share each in the Jerusalem Productions Limited, a company incorporated and registered in England (no. 02461543.) The Trustees hold the shares of JPL in trust for the Trustees of the time being of the charity for its charitable purposes. At the year end, an amount of £485,000 (2020/21: £465,000) was payable to Jerusalem Productions Limited. Grants totaling £145,000 (2020/21:£1,020,000) were awarded by the Jerusalem Trust to the Jerusalem Productions Ltd during the year. There are no donations from related parties which are outside the normal course of business. Report and Accounts – 5 April 2022 - 22 - **THE JERUSALEM TRUST 5 A p r i l 2 0 2 2** ## **NOTES TO THE ACCOUNTS** ## **13. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2021** ||**Unrestricted**|**Unrestricted**|**Expendable**|**Total Funds**| |---|---|---|---|---| |||**Funds**
£’000|**Endowment**
£’000|**2021**
£’000| |**Income**||||| |Income from investments||3,079|-|3,079| |**Total income**||3,079|-|3,079| |**Expenditure**||||| |**_Cost of raising funds_**||||| |Investment management costs||-|444|444| |**_Charitable activities_**||||| |Grant-making:||||| |Grant expenditure||2,409|-|2,409| |Grant related support costs||265|-|265| |**Cost of grant-making**||2,674|-|2,674| |**Total expenditure**||2,674|444|3,118| |**Net expenditure before net**||||| |**gains on investments**||405|(444)|(39)| |Exchange gains||-|1,554|1,554| |Net gains on investments||-|20,635|20,635| |Transfers between funds||-|-|-| |**Net movement in funds**||405|21,745|22,150| |**Reconciliation of funds**||||| |Total funds brought forward||105|92,503|92,608| |Total funds carried forward||510|114,248|114,758| Report and Accounts – 5 April 2022 - 23 - **THE JERUSALEM TRUST 5 A p r i l 2 0 2 2** ## **NOTES TO THE ACCOUNTS** ## **Appendix A** The amount payable in the year ended 5 April 2022 consisted of the following: |**Christian Education**
Evangelical Alliance
RE Small grants Programme to School
Net grants payable/cancelled up to £10,000
**Christian Evangelism and Relief Work Overseas**
Bible Society
Catholic Agency for Overseas Development (CAFOD)
Embrace the Middle East
Open Doors with Brother Andrew
Tearfund
Net grants payable/cancelled up to £20,000
**Christian Media**
Biblica
Jerusalem Productions Ltd
SAT 7 Trust Ltd - Oxford
University of Durham - St John's College
Net grants payable/cancelled up to £10,000
**Evangelism and Christian Mission in the UK**
Bringing Hope
Bristol CCRC Trust
Christians in Sport
Church Army
Eternal Wall of Answered Prayer
Luis Palau Evangelistic Association
Nehemiah Project - London
Mercy UK
Safe Families for Children
Salmon Youth Centre
Swindon CCRC Trust
Transforming Lives for Good
Youthscape
Net grants payable/cancelled up to £50,000
**Christian Art**
Art in the Churches
HMP Bronzefield
Total grants payable per Statement of Financial Activities|60,000
200,000
35,849
57,000
56,000
35,000
100,000
295,000
97,260
10,000
485,000
60,000
21,000
27,800
100,000
120,000
62,000
202,500
100,000
50,000
40,000
55,000
100,000
50,000
120,000
50,000
100,000
624,740
20,000
20,000| |---|---| ||**3,354,149**| Report and Accounts – 5 April 2022 - 24 - **THE JERUSALEM TRUST 5 A p r i l 2 0 2 2** ## **NOTES TO THE ACCOUNTS** ## **Appendix A (continued)** The amount payable in the year ended 5 April 2021 consisted of the following: ## **Christian Education** |RE Small grants Programme
**Christian Evangelism and Relief Work Overseas**
CAFOD
Christian Solidarity Worldwide
Mission Aviation Fellowship
Mosaic Middle East
Tearfund
Net grants payable/cancelled up to £60,000
**Christian Media**
Middle East Media
Passion Trust
Premier Christian Media Trust
Saltmine Trust
Net grants payable/cancelled up to £15,000
**Evangelism and Christian Mission in the UK**
Alpha International
Christians Against Poverty
Evangelical Alliance
Hope Into Action
Prison Advice & Care Trust
St Mary's Andover
Urban Expression
Youth for Christ in Britain - British Youth for Christ
Net grants payable/cancelled up to £50,000
Jerusalem Productions Limited
Total grants payable per Statement of Financial Activities|217,000
85,000
31,500
15,000
40,000
175,000
(28,900)
50,000
40,000
40,000
20,000
40,500
160,000
70,000
60,000
70,000
90,000
82,500
60,000
115,000
636,500
340,000| |---|---| ||**2,409,100**| Report and Accounts – 5 April 2022 - 25 -