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2023-04-05-accounts

THE JERUSALEM TRUST

ANNUAL REPORT AND FINANCIAL STATEMENTS

5 APRIL 2023

The Peak 5 Wilton Road London SW1V 1AP

CONTENTS

PAGE
1 Legal and Administrative 1
2 The Report of the Trustees 2-7
3 Statement of Trustees’ Responsibilities 8
4 Independent Auditor’s Report 9-12
5 Statement of Financial Activities 13
6 Balance Sheet 14
7 Cash Flow Statement 15
8 Notes to the Accounts 16-24

THE JERUSALEM TRUST 5 A p r i l 2 0 2 3

Legal and Administrative

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 – Retired 9 September 2022
Mr Mark Browning
Prof Peter Frankopan
Mr Colin Harbidge – Retired 9 September 2022
Mrs Melanie Townsend
Mr David Wright
Mr Peter Toby Hartley Booth
The Peak
5 Wilton Road
London SW1V 1AP
Mrs K Everett
Chief Executive Officer
Ms V McLachlan
Executive
Mr B M Woodruff
Executive
Ms R Tiley
Executive
Royal Bank of Scotland
119 - 121 Victoria Street
London
SW1E 6RA
BDB PITMANS
One Bartholomew Close
London EC1A 7BL
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 2023

THE JERUSALEM TRUST 5 A p r i l 2 0 2 3

The Report of the Trustees

The Trustees present their report and the audited financial statements for the year ended 5 April 2023.

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:

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 regularly consider support for Resource Churches. Trustees will continue to consider extra support grants for current grantees in particular need due to the Covid19 pandemic and cost-of-living crisis. Trustees agreed to release an extra £1.5 million from capital in 2022/23 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 2023

THE JERUSALEM TRUST 5 A p r i l 2 0 2 3

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 decreased by 7% from £116.3 million at 5 April 2022 to £108.6 million at 5 April 2023. The net unrestricted income of the Trust for the year after charging grant related support costs was £2.9 million compared to £2.5 million for the year to 5 April 2022.

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 8.5% (2022: 11%) of the value of grants paid, which totalled £4.0 million (2022: £2.6 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 £0.4 million (2022: £1.3 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 2023, the Trust held total funds of £108.6 million (2022: £116.3 million), comprising of an expendable endowment fund of £108.4 million (2022: £115.7 million) and unrestricted reserves of £179k (2022: £641k).

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 fell in value over the past 12 months. Within the equities, the lack of commodities (oil & gas) exposure, was unhelpful to returns. However, the momentum of the final quarter of 2022 continued into 2023. This has largely been due to market optimism that the central

Report and Accounts – 5 April 2023

THE JERUSALEM TRUST 5 A p r i l 2 0 2 3

banks may be drawing nearer to the end of their interest rate hiking cycle and an expectation of a slowdown in global inflation.

Whilst the past 12-month performance has been relatively weak, performance over the 5-year period remain comfortably ahead of the peer group, as measured by the ARC Charity Steady Growth index.

No J Sainsbury shares were sold as the shares are enjoying a strong run currently, benefiting from food price inflation. As at 5 April 2023, J Sainsbury shares represented 6.9% of the Trust’s value.

The Trust received £3.2 million of income over the 12-month period. There was one capital withdrawal of £600,000 in April 2022 and £500,000 in March 2023.

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.

Report and Accounts – 5 April 2023

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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.

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
£
10
466,500
20
350,500
8
156,000
43
1,478,600
3
14,000
84
2,465,600

CHRISTIAN EDUCATION - £466,500

Trustees’ priority areas in this category are as follows:

Grants approved in this category were to:

ACET - £80,000 Alpha Ireland - £10,000 Christian Education Movement - £170,000 Culham St Gabriel's Trust - Culham College Institute - £120,000 Institute for Children, Youth and Mission - £10,000 Liverpool Cathedral - £10,000

Report and Accounts – 5 April 2023

THE JERUSALEM TRUST 5 A p r i l 2 0 2 3

Portsmouth Cathedral Development Trust - £20,000 Wintershall Charitable Trust – 2 grants totalling £44,000

A further smaller grant was awarded totalling : £2,500

CHRISTIAN EVANGELISM AND RELIEF WORK OVERSEAS - £350,500

Trustees’ priority areas in this category are as follows:

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.

Biblical Understanding for In-Service Leadership Development (BUILD) - £10,000 Christian Solidarity Worldwide - £83,000 Langham Partnership UK & Ireland - £10,000 Middle East Media - £105,000 Samaritan's Purse International - £10,000 TESO Development Trust - £10,000

Christian Evangelism and Relief Work Overseas emergency grants:

Bible Society - £10,000 Catholic Agency for Overseas Development (CAFOD) - £25,000 Open Doors with Brother Andrew - £25,000 Tearfund – 2 grants totalling £45,000

A further nine smaller grants were awarded totalling: £17,500

CHRISTIAN MEDIA - £156,000

Trustees’ priority areas in this category are as follows:

Faith in Kids - £10,000 Jerusalem Productions Ltd –£91,000 Theos- £45,000

A further five smaller grants were awarded totalling: £10,000

Report and Accounts – 5 April 2023

THE JERUSALEM TRUST 5 A p r i l 2 0 2 3

EVANGELISM AND CHRISTIAN MISSION IN THE UK - £1,478,600

The trustees’ priority areas in this category are as follows:

Alpha International - £160,000 Ascension Trust - £45,000 Bethany Christian Trust - £120,000 Holy Trinity Combe Down - £120,000 Home for Good - £240,000 Hope 08 - £50,000 Kintsugi Hope - £60,000 London City Mission - £52,600 River Church Ipswich - £120,000 Spurgeons - £50,000 St Barnabas Penny Lane Church, Liverpool - £120,000 Steps to Active Recovery (STAR) - £10,000 SWYM - £48,000 Transforming Lives for Good - £150,000

Evangelism and Christian Mission in the UK emergency winter support grants: Baby Basics - £10,000 Christians Against Poverty - £20,000 Good Faith Foundation - £10,000 Message Trust - £20,000 Trussell Trust - £20,000

A further twenty-four smaller grants were awarded totalling: £53,000

CHRISTIAN ART - £14,000

All Saints Church, Wandsworth - £10,000

A further two smaller grants were awarded totalling: £4,000

Future Plans

The Trust will continue to support the activities set out on page 2 by the award of grants. Trustees will continue support for long standing beneficiaries to help them overcome the challenges of the Covid-19 pandemic and the cost-of-living crisis.

Report and Accounts – 5 April 2023

THE JERUSALEM TRUST 5 A p r i l 2 0 2 3

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:

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 10 October 2023 and signed on their behalf by

……………………………………………TRUSTEE Lady Susan Sainsbury

Report and Accounts – 5 April 2023

THE JERUSALEM TRUST 5 A p r i l 2 0 2 3

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 2023 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on 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.

Report and Accounts – 5 April 2023

THE JERUSALEM TRUST 5 A p r i l 2 0 2 3

Other Information

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

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

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

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

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.

Report and Accounts – 5 April 2023

THE JERUSALEM TRUST 5 A p r i l 2 0 2 3

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

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

Capability of the audit in detecting irregularities

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

Report and Accounts – 5 April 2023

THE JERUSALEM TRUST 5 A p r i l 2 0 2 3

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

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

Use of our report

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

Date: 9 January 2024 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 2023

THE JERUSALEM TRUST 5 A p r i l 2 0 2 3

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2023

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
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
Net expenditure before net
(losses)/gains on investments
Exchange losses
Net (losses)/gains on investments		 Unrestricted
Expendable
Total Funds
Total Funds
Funds
Endowment
2023
2022
£’000
£’000
£’000
£’000
3,240
-
3,240
2,776
3,240
-
3,240
2,776
-
461
461
476
3,364
-
3,364
3,354
338
-
338
291
3,702
-
3,702
3,645
3,702
461
4,163
4,121
(462)
(461)
(923)
(1,345)
-
(1,526)
(1,526)
(847)
-
(5,334)
(5,334)
3,780
(462)
(7,321)
(7,783)
1,588
641
115,705
116,346
114,758
179
108,384
108,563
116,346

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 2023

THE JERUSALEM TRUST 5 A p r i l 2 0 2 3

BALANCE SHEET AS AT 5 APRIL 2023

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 2023
2022
£’000
£’000
12
15
110,595
118,947
110,607
118,962

252

759
1,011

3,627
(2,044)
(2,616)
108,563
116,346
108,384
115,705
179
641
108,563
116,346
7
8
9
10
11
11		 £’000
229
756
985
3,029

The financial statements were approved and authorised for issue by the Trustees on 10 October 2023 and were signed on their behalf by :

………………………………………………………TRUSTEE

Lady Susan Sainsbury

Report and Accounts – 5 April 2023

THE JERUSALEM TRUST 5 A p r i l 2 0 2 3

STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 5 APRIL 2023

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)
Losses/(gains) on investments
Dividends and interest
(Increase) in forward exchange contracts
Depreciation charge
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Net cash (used in) operating activities
Analysis of the balance of cash as shown in the balance sheet
2023
£'000
Cash at bank and in hand
756
Cash balances held by investment manager for reinvestment
11,034
11,790		 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)
Losses/(gains) on investments
Dividends and interest
(Increase) in forward exchange contracts
Depreciation charge
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Net cash (used in) operating activities
Analysis of the balance of cash as shown in the balance sheet
2023
£'000
Cash at bank and in hand
756
Cash balances held by investment manager for reinvestment
11,034
11,790		 2023
2022
£'000
£'000
(6,327)
(4,393)
3,240
2,776
(56,108)
(37,566)
62,965
42,106
10,097
7,316
3,770
2,923
8,020
5,097
11,790
8,020
2023
2022
£'000
£'000
(7,783)
1,588
5,334
(3,780)
(3,240)
(2,776)
(66)
(62)
3
8
25
(90)
(600)
719
(6,327)
(4,393)
Change in
2022
year
£'000
756
11,034		 £'000
£'000
759
(3)
7,261
3,773
11,790 8,020
3,770

Report and Accounts – 5 April 2023

THE JERUSALEM TRUST 5 A p r i l 2 0 2 3

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 2023

THE JERUSALEM TRUST 5 A p r i l 2 0 2 3

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:

(2021) Leasehold improvements - 14.28% per annum

Items of equipment are capitalised where the purchase price exceeds £5,000. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. Major components are treated as a separate asset where they have significantly different patterns of consumption of economic benefits and are depreciated separately over its useful life.

h) Debtors

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

i) Creditors and provisions

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

j) Pensions

Contributions to defined contribution plans are charged to the statement of financial activities in the period to which they relate.

k) 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 2023

THE JERUSALEM TRUST 5 A p r i l 2 0 2 3

NOTES TO THE ACCOUNTS

2. INCOME FROM INVESTMENTS

Income received on investments may be analysed as follows:

Government fixed interest
Other Fixed Interest
UK equities
Overseas equities
Alternatives
Property
Multi Assets
Interest		 2023
2022
£’000
%
£’000
%
107
3
9
-
181
6
257
9
856
26
981
35
1,230
39
1,011
37
451
14
265
10
236
7
205
7
37
1
35
1
142
4
13
1
3,240
100
2,776
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 2022
Grants not accrued at 6 April 2022
Grants approved in the year
Grants cancelled, refunded or amended
Grants not accrued at 5 April 2023
Grants payable for the year
Grants paid during the year
Commitments at 5 April 2023
Commitments at 5 April 2023 are payable as follows:
Within one year (note 10)		 2023
2022
£’000
£’000
£’000
£’000
3,401
2,683
1,339
1,012
2,466
3,684
-
(3)
(441)
(1,339)
3,364
3,354
(3,996)
(2,636)
2,769
3,401
2023
2022
£’000
£’000
2,769
3,401

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 2023 was £441,000 (2022: £1,338,500). This total will all be payable during 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 2023

THE JERUSALEM TRUST 5 A p r i l 2 0 2 3

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
Auditor's remuneration		 2023
2022
Grant-
Governance
Total
Total
making
£’000
£’000
£’000
£’000
242
4
246
188
69
-
69
73
4
-
4
4
3
-
3
8
318
4
322
273
6
-
6
9
-
10
10
9
324
14
338
_291 _

The auditor's remuneration excluding VAT is £8,650. During the year no Trustee received any remuneration or reimbursement of expenses (2022: NIL). Included in the support costs for 2022 are governance costs of £12,578 which was comprised of staff costs of £3,218 and auditor's renumeration of £9,360.

6. ANALYSIS OF STAFF COSTS

ANALYSIS OF STAFF COSTS
Wages and salaries
Social security costs
Other pension costs		 2023
2022
£’000
£’000
202
155
25
17
19
16
246
188

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. 2.6% (2021/22: 2.4%) 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 2022/23.

The average number of staff employed during the year was 7, all on a part-time basis (2021/22: 10). This equates to 2.1 full-time employees (2021/22: 1.9).

Having regard to the small number of employees, the Trust considers its key management personnel to comprise of 4 part-time staff (2021/22: 4). The total employment benefits, including employer contributions to group personal pensions, of these key management personnel, were £152,537 (2021/22: £122,435). The number of employees whose total employee benefits (excluding employer pension costs) for services provided to the Trust exceeded £60,000 was as follows: 2023: 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 2022
Disposals
At 5 April 2023
Depreciation
At 6 April 2021
Charge for the year
Disposals
At 5 April 2023
Net Book Value
At 5 April 2023
At 5 April 2022		 2023
2022
£’000
£’000
72
72
(52)
-
20
72
57
49
3
8
(52)
8
57
12
15
15
23

Report and Accounts – 5 April 2023

THE JERUSALEM TRUST 5 A p r i l 2 0 2 3

NOTES TO THE ACCOUNTS

8. FIXED ASSET INVESTMENTS

FIXED ASSET INVESTMENTS
Market value 5 April 2022
Less: Disposals at proceeds
Add: Acquisitions at cost
Net (losses)/gains on investments
Market value 5 April 2023
Forward exchange contracts
Investment cash
Total investments		 2023
2022
£’000
£’000
111,616
112,376
(62,965)
(42,106)
56,108
37,566
(5,334)
3,780
99,425
111,616
136
70
11,034
7,261
110,595
118,947

The investments held as at 5 April 2023 were as follows:

Fixed Income
UK Equities
Global Equities
Property
Alternative Investments
Multi Assets		 2023
2022
Cost
Market
Cost
Market
Value
Value
£’000
£’000
£’000
£’000
12,416
10,784
11,251
10,573
9,589
7,453
25,002
24,258
53,438
59,601
38,919
52,766
4,387
4,181
5,700
6,441
16,082
16,013
13,644
16,052
1,490
1,393
1,490
1,526
97,402
99,425
96,006
111,616

Investments include the following holding at market value: U.K. Equities - J Sainsbury Plc - £7,452,670 (2021/22; £6,739,378)

As part of the overall management of funds, the investment managers have entered into commitments to sell a total EUR 5,871,000, USD 9,766,000 and buy EUR 4,686,849 and USD 2,174,000 under forward rate contracts at 5 April 2023. (2022:to sell EUR 4,357,000 and USD 23,131,600 and buy USD 1,970,000).

All contracts matured on 15 June 2023 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		 2023
2022
£’000
£’000
229
252
229
252
2023
2022
£’000
£’000
2,769
3,401
15
6
245
220
3,029
3,627

Report and Accounts – 5 April 2023

THE JERUSALEM TRUST 5 A p r i l 2 0 2 3

NOTES TO THE ACCOUNTS

11. ANALYSIS OF NET ASSETS BETWEEN FUNDS


Fund balances at 5 April 2023 are represented by:
Tangible fixed assets
Investments
Current assets
Current liabilities
Total net assets
Movement in the year
Opening balance as at 5 April 2022
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 2023

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
Transfers between funds
Closing balance as at 5 April 2022
Comparative
Currency exchange gains		 Unrestricted
Expendable
Totals
Funds
Endowment
2023
£’000
£’000
£’000
-
12
12
-
110,595
110,595
3,694
(2,709)
985
(3,515)
486
(3,029)
179
108,384
108,563
641
115,705
116,346
3,240
-
3,240
-
(461)
(461)
(3,702)
-
(3,702)
-
(5,334)
(5,334)
-
(1,526)
(1,526)
-
179
108,384
108,563
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

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 £340,000 (2021/22: £485,000) was payable to Jerusalem Productions Limited. Grants totaling £91,000 (2021/22:£145,000) 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 2023

THE JERUSALEM TRUST 5 A p r i l 2 0 2 3

NOTES TO THE ACCOUNTS

13. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2022

Unrestricted Unrestricted Expendable Total Funds
Funds Endowment 2022
£’000 £’000 £’000
Income
Income from investments 2,776 - 2,776
Total income 2,776 - 2,776
Expenditure
Cost of raising funds
Investment management costs - 476 476
Charitable activities
Grant-making:
Grant expenditure 3,354 - 3,354
Grant related support costs 291 - 291
Cost of grant-making 3,645 - 3,645
Total expenditure 3,645 476 4,121
Net income/(expenditure)
before net gains on
investments (869) (476) (1,345)
Exchange gains - (847) (847)
Net gains on investments - 3,780 3,780
Transfers between funds 1,000 (1,000) -
Net movement in funds 131 1,457 1,588
Reconciliation of funds
Total funds brought forward 510 114,248 114,758
Total funds carried forward 641 115,705 116,346

Report and Accounts – 5 April 2023

THE JERUSALEM TRUST 5 A p r i l 2 0 2 3

NOTES TO THE ACCOUNTS

Appendix A

The amount payable in the year ended 5 April 2023 consisted of the following:

Christian Education
ACET
Christian Education Movement
Culham St Gabriel's Trust - Culham College Institute
Evangelical Alliance
Wintershall Charitable Trust
Net grants payable/cancelled up to £20,000
Christian Evang. & Relief O/s
Catholic Agency for Overseas Development
Christian Solidarity Worldwide
Embrace the Middle East
Middle East Media
Mosaic Middle East
Open Doors with Brother Andrew
Tearfund
Net grants payable/cancelled up to £20,000
Christian Media
Jerusalem Productions Ltd
SAT 7 Trust Ltd - Oxford
Theos
Net grants payable/cancelled up to £20,000
Evangelism & Christian Mission
Alpha International
Bethany Christian Trust
Church Army
Holy Trinity Combe Down
Home for Good
Hope 08
London City Mission
River Church Ipswich
Safe Families for Children
Spurgeons
St Barnabas Penny Lane Church, Liverpool
Transforming Lives for Good
Youthscape
Net grants payable/cancelled up to £50,000
Christian Art
All Hallows by the Tower
All Saints Church, Child’s Hill
All Saints Church, Wandsworth
Total grants payable per Statement of Financial Activities		 80,000
120,000
120,000
30,000
44,000
52,500
27,000
83,000
35,000
70,000
40,000
25,000
245,000
65,500
431,000
60,000
45,000
35,000
160,000
80,000
100,000
120,000
160,000
50,000
52,600
120,000
50,000
50,000
120,000
150,000
50,000
478,500
2,000
2,000
10,000
3,363,100

Report and Accounts – 5 April 2023

THE JERUSALEM TRUST 5 A p r i l 2 0 2 3

NOTES TO THE ACCOUNTS

Appendix A (continued)

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
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 2023