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2024-04-05-accounts

THE JERUSALEM TRUST

ANNUAL REPORT AND FINANCIAL STATEMENTS

5 APRIL 2024

The Peak 5 Wilton Road London SW1V 1AP

Monday, 21/10/24 1:47 PM

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 16-26

THE J ERUSALEM TRUST 5 A p r i l 2 0 2 4

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
Mr Mark Browning
Prof Peter Frankopan
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
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
110Golden Lane
London
EC1Y 0TG
Sarasin & Partners
Juxon House
100 St Paul's Churchyard
London EC4M 8BU

Report and Accounts – 5 April 2024

THE J ERUSALEM TRUST 5 A p r i l 2 0 2 4

The Report of the Trustees

The Trustees present their report and the audited financial statements for the year ended 5 April 2024.

Legal 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.

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.

Review of the Past Period

The Trustees met four times during the year to make grants and a further twice to review investment activity.

Report and Accounts – 5 April 2024

THE J ERUSALEM TRUST 5 A p r i l 2 0 2 4

The asset value of the Trust increased by 5% from £108.6 million at 5 April 2023 to £114.4 million at 5 April 2024. The net unrestricted income of the Trust for the year after charging grant related support costs was £2.8 million compared to £2.9 million for the year to 5 April 2023.

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 7.7% (2023: 8.5%) of the value of grants paid, which totalled £4.8 million (2023: £4.0 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 £2 million (2023: £0.4 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 2024, the Trust held total funds of £114.4 million (2023: £108.6 million), comprising of an expendable endowment fund of £114.2 million (2023: £108.4 million) and unrestricted reserves of £209k (2023: £179k).

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 generated a total return net of all costs of +11.3%. Whilst this was behind the composite benchmark return of +16.2%, it was ahead of both the ARC Steady Growth Charity peer group index and the long-term CPI +4% target.

As at 5 April 2024, J Sainsbury shares represented 5.6% of the Trust’s net asset value.

The Trust received £3.2 million of income over the 12-month period. For the same period, £2m of capital was withdrawn.

Report and Accounts – 5 April 2024

THE J ERUSALEM TRUST 5 A p r i l 2 0 2 4

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 nominated 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.

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.

Report and Accounts – 5 April 2024

THE J ERUSALEM TRUST 5 A p r i l 2 0 2 4

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
£
4 £222,000
24 £491,000
12 £2,142,500
93 £3,488,100
4 £51,400
137
£6,395,000

CHRISTIAN EDUCATION - £222,000

Trustees’ priority areas in this category are as follows:

Grants approved in this category were to: Bible Society - £60,000

The Centre for Chaplaincy in Education - £10,000 Small Grants Scheme - £150,000 (262)

A further smaller grant was awarded totalling : £2,000

CHRISTIAN EVANGELISM AND RELIEF WORK OVERSEAS - £491,000

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.

Catholic Agency for Overseas Development (CAFOD) - £50,000 Christian Solidarity Worldwide - £50,000

Report and Accounts – 5 April 2024

THE J ERUSALEM TRUST

5 A p r i l 2 0 2 4

Five Talents - £50,000 Flame International - £60,000 Life Bridging Works - £10,000 Mosaic Middle East - £21,000 Open Doors with Brother Andrew - £100,000 PAK7 International £15,000 Starfish Asia - £10,000 Wycliffe Bible Translators - £20,350

A further 14 grants were awarded totalling: £104,650

CHRISTIAN MEDIA - £2,142,500

Trustees’ priority areas in this category are as follows:

Passion for Sport - £10,000 Biblical Frameworks - £10,000 Burning Heart - £10,000 Centre for Cultural Witness - £24,000 Christ Church Leamington - £14,000 Jerusalem Productions Ltd - 5 grants totalling £1,934,500 Passion Trust - £40,000 Premier Christian Media Trust - £100,000

EVANGELISM AND CHRISTIAN MISSION IN THE UK - £3,488,100

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

A ROCHA UK - £90,000 Beyond the Streets - £60,000 Bringing Hope – £120,000 Church Revitalisation Trust - £1,250,000 Evangelical Council for the Manchester Area Trust - £10,000 Explore Relationships - £10,000 Gregory Centre for Church Multiplication - £48,000 Harbour Church Portsmouth - £120,000 Home for Good – £150,000 Hope Into Action – £170,000 Linking Lives UK - £40,000 Luis Palau Evangelistic Association – 2 grants totalling £110,000 Oxford Centre for Christians Apologetics - £30,000

Report and Accounts – 5 April 2024

THE J ERUSALEM TRUST

5 A p r i l 2 0 2 4

St Martin in the Fields Trust - £10,000 St Mary's Andover – £120,000 St Werburgh’s Derby - £120,000 Tearfund - £400,000 Urban Expression – £120,000 Welcome Churches - £10,000

36 grantees received non-Cost of Living grant payments of less than £10,000 totalling £79,000 37 grantees received Cost of Living grant payments totalling £421,100

CHRISTIAN ART - £51,400

Art & Christianity Enquiry Trust – 2 grants totalling £11,400 Zurbaran Trust – 2 grants totalling £40,000

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 grantees within the current challenging fundraising landscape.

Report and Accounts – 5 April 2024

THE JERUSALEM TRUST 5 April 2024 Statement of Trustees, Responsibilities Law applicable to charities in England and Wales requires the tnjstees 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 Ihe Charities SORP Make judgements and estimates that are reasonable and prudent Slate 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 ofthe 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 th8 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 15 October 2024 and signed on their behalf by .TRUSTEE Lady Susan Sainsbury Report and Aco)unls-5 April 2024

THE J ERUSALEM TRUST 5 A p r i l 2 0 2 4

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 2024 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 2024

THE J ERUSALEM TRUST 5 A p r i l 2 0 2 4

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 2024

THE J ERUSALEM TRUST 5 A p r i l 2 0 2 4

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 2024

THE J ERUSALEM TRUST 5 A p r i l 2 0 2 4

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 1 November 2024

Sayer Vincent LLP, Statutory Auditor 110 Golden Lane, LONDON, EC1Y 0TG

Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006

Report and Accounts – 5 April 2024

THE J ERUSALEM TRUST 5 A p r i l 2 0 2 4

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 5 APRIL 2024

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/(losses) on investments
Exchange gains/(losses)
Net gains/(losses) on investments		 Unrestricted
Expendable
Total Funds
Total Funds
Funds
Endowment
2024
2023
£’000
£’000
£’000
£’000
3,209
-
3,209
3,240
3,209
-
3,209
3,240
-
460
460
461
4,803
-
4,803
3,364
375
-
375
338
5,178
-
5,178
3,702
5,178
460
5,638
4,163
(1,969)
(460)
(2,429)
(923)
-
177
177
(1,526)
-
8,067
8,067
(5,334)
2,000
(2,000)
-
-
31
5,784
5,815
(7,783)
179
108,384
108,563
116,346
210
114,168
114,378
108,563

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above.

Report and Accounts – 5 April 2024

THE JERUSALEM TRUST 5 April 2024 BALANCE SHEET AS AT 5 APRIL 2024 Note 2024 £'ooo 2023 £'ooo £'ooo FIXED ASSETS Tangible fixed assets Investments 12 110.595 116.335 116344 110,607 CURRENT ASSETS Debtors Cash at bank and in hand 201 733 934 229 756 985 CURRENT LIABILITIES Creditorn- amounts falling due within 1 year io NET CURRENT LIABILITIES 11,9661 (2,044) NET ASSETS 114,378 108,563 CAPITAL FUNDS Expendable endowment 114.168 108,384 INCOPIJE FUNDS Unrestricted fijnds li 210 179 114.378 108,563 The financial stalernents were approved and aulhorised for issue by the Trustees on 15 October 2024 and were signed on their behalf by TRUSTEE-. Lady Susan Sainsbury Report and A¢￿urts- 5 April 2024 14-

THE J ERUSALEM TRUST 5 A p r i l 2 0 2 4

STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 5 APRIL 2024

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 (used in)/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)/Losses on investments
Dividends and interest
Decrease/(increase) in forward exchange contracts
Depreciation charge
Decrease in debtors
Decrease in creditors
Net cash (used in) operating
activities		 2024
£'000
(5,328)
3,209
(44,347)
38,446
(2,692)
(8,020)
11,790
3,770
2024
£'000
5,815
(8,067)
(3,209)
231
3
28
(129)
(5,328)		 2023
£'000
(6,327)
3,240
(56,108)
62,965
10,097
3,770
8,020
11,790
2023
£'000
(7,783)
5,334
(3,240)
(66)
3
25
(600)
(6,327)

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
2024
2023
year
£'000
£'000
£'000
733
756
(23)
3,037
11,034
(7,997)
3,770
11,790
(8,020)

Report and Accounts – 5 April 2024

THE J ERUSALEM TRUST 5 A p r i l 2 0 2 4

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.

Report and Accounts – 5 April 2024

THE J ERUSALEM TRUST 5 A p r i l 2 0 2 4

NOTES TO THE ACCOUNTS

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.

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.

Report and Accounts – 5 April 2024

THE J ERUSALEM TRUST 5 A p r i l 2 0 2 4

NOTES TO THE ACCOUNTS

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 2024

THE J ERUSALEM TRUST 5 A p r i l 2 0 2 4

NOTES TO THE ACCOUNTS

2. INCOME FROM INVESTMENTS

Income received on investments may be analysed as follows:

Fixed Interest
Equities
Alternatives
Property
Multi Assets
Interest		 2024
2023
£’000
%
£’000
%
181
6
288
9
1,991
62
2,086
64
317
10
451
14
229
7
236
7
57
2
37
1
434
13
142
4
3,209
100
3,240 100

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

GRANTS PAYABLE
£’000
Reconciliation of grants payable:
Commitments at 6 April 2023
Grants not accrued at 6 April 2023
441
Grants approved in the year
6,395
Grants cancelled, refunded or amended
(13)
Grants not accrued at 5 April 2024
(2,020)
Grants payable for the year
Grants paid during the year
Commitments at 5 April 2024
Commitments at 5 April 2024 are payable as follows:
Within one year (note 10)		 2024 2023
£’000
441
6,395
(13)
(2,020)
£’000
2,769


4,803
(4,847)
£’000

1,339
2,466
-
(441)
£’000
3,401



3,364
(3,996)


2,725 2,769
2024 2023
£’000
2,725		 £’000
2,769

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 2024 was £2,020,000 (2023: £441,000).

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 2024

THE J ERUSALEM TRUST 5 A p r i l 2 0 2 4

NOTES TO THE ACCOUNTS

GRANT RELATED SUPPORT 5. COSTS

GRANT RELATED SUPPORT
COSTS
Staff
costs
Share of joint office costs
Direct costs including travel
Depreciation
Legal and professional fees
Auditor's
remuneration		 2024
2023
Grant- Governance
Total
Total
making
£’000
£’000
£’000
£’000
265
5
270
246
84
-
84
69
5
-
5
4
3
-
3
3
357
5
362
322
1
-
1
6
-
12
12
10
358
17
375
338

The auditor's remuneration excluding VAT is £9,650 (2023: £7,800 excluding VAT). During the year no Trustee received any remuneration or reimbursement of expenses (2023: NIL). Included in the support costs for 2023 are governance costs of £14,301 which was comprised of staff costs of £3,921 and auditor's remuneration of £10,380.

6. ANALYSIS OF STAFF COSTS

ANALYSIS OF STAFF COSTS
Wages and salaries
Social security costs
Other pension costs		 2024
2023
£’000
£’000
219
202
26
25
25
19
270
246

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. 2.7% (2022/23: 2.6%) 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 2023/24.

The average number of staff employed during the year was 8, all on a part-time basis (2022/23: 7). This equates to 2.7 full-time employees (2022/23: 2.1).

Having regard to the small number of employees, the Trust considers its key management personnel to comprise of 3 part-time staff (2022/23: 4). The total employment benefits, including employer contributions to group personal pensions, of these key management personnel, were £146,422 (2022/23: £152,537). No employee earned more than £60,000 during the year (2023: nil).

No trustee received any remuneration for their services during the current or prior year.

Report and Accounts – 5 April 2024

THE J ERUSALEM TRUST 5 A p r i l 2 0 2 4

NOTES TO THE ACCOUNTS

7. TANGIBLE FIXED ASSETS Leasehold Improvements

TANGIBLE FIXED ASSETS
Leasehold Improvements
Cost
At 6 April 2023
Disposals
At 5 April 2024
Depreciation
At 6 April 2023
Charge for the year
Disposals
At 5 April 2024
Net Book Value
At 5 April 2024
At 5 April 2023		 2024
2023
£’000
£’000
20
72
-
(52)
20
20
8
57
3
3
-
(52)
11 8
912
12 15

Report and Accounts – 5 April 2024

THE J ERUSALEM TRUST 5 A p r i l 2 0 2 4

NOTES TO THE ACCOUNTS

NOTES TO THE ACCOUNTS

8. FIXED ASSET INVESTMENTS

OTES TO THE ACCOUNTS
FIXED ASSET INVESTMENTS
Market value 5 April 2023
Less: Disposals at proceeds
Add: Acquisitions at cost
Net gains/(losses) on investments
Market value 5 April 2024
Forward exchange contracts
Investment cash
Total investments		 2024
2023
£’000
£’000
99,425
111,616
(38,446)
(62,965)
44,347
56,108
8,067
(5,334)
113,393
99,425
(95)
136
3,037
11,034
116,335
110,595

The investments held as at 5 April 2024 were as follows:

Fixed Income
Equities
Property
Alternative Investments
Multi Assets		 2024
2023
Cost
Market
Cost
Market
Value
Value
£’000
£’000
£’000
£’000
11,486
9,792
12,416
10,784
68,889
81,546
63,027
67,054
4,054
3,649
4,387
4,181
17,581
11,394
16,082
16,013
1,640
7,011
1,490
1,393
103,650
113,393
97,402
99,425

Investments include the following holding at market value:

U.K. Equities - J Sainsbury Plc - £6,452,101 (2022/23; £7,452,670)

As part of the overall management of funds, the investment managers have entered into commitments to sell EUR 5,976,151; JPY 98,054,000; CHF 660,000; NOK 22,840,000 and USD 25,181,201 under forward rate contracts as at 5 April 2024. (2023: to sell a total of EUR 5,871,000 and USD 9,766,000 and buy EUR 4,686,849 and USD 2,174,000).

All contracts matured on 20 June 2024 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		 2024
2023
£’000
£’000
201
229
201
229
2024
2023
£’000
£’000
2,725
2,769
8
15
167
245
2,900
3,029

Report and Accounts – 5 April 2024

THE J ERUSALEM TRUST 5 A p r i l 2 0 2 4

NOTES TO THE ACCOUNTS

11. ANALYSIS OF NET ASSETS BETWEEN FUNDS


Fund balances at 5 April 2024 are represented by:
Tangible fixed assets
Investments
Current assets
Current liabilities
Total net assets
Movement in the year
Opening balance as at 5 April 2023
Total income and endowments
Cost of raising funds
Cost of grant-making
Net gains on investments
Currency exchange gains
Transfers between funds
Closing balance as at 5 April 2024

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
Transfers between funds
Closing balance as at 5 April 2023
Comparative
Currency exchange (losses)		 Unrestricted Expendable
Totals
Funds Endowment
2024
£’000
£’000
£’000
-
9
9
-
116,335
116,335
2,992
(2,058)
934
(2,782)
(118)
(2,900)
210
114,168
114,378
179
108,384
108,563
3,209
-
3,209
-
(460)
(460)
(5,178)
-
(5,178)
-
8,067
8,067
-
177
177
2,000
(2,000)
-
210
114,168
114,378
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

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 for its charitable purposes.

At the year end, an amount of £350,000 (2022/23: £340,000) was payable to Jerusalem Productions Limited. Grants totaling £1,934,500 (2022/23:£91,000) 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 2024

THE J ERUSALEM TRUST 5 A p r i l 2 0 2 4

NOTES TO THE ACCOUNTS

13. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2023

Income
Income from investments
Total income
Expenditure
Cost of raising funds
Investment management costs
Charitable activities
Grant-making:
Grant expenditure
Grant related support costs
Cost of grant-making
Total expenditure
Net expenditure before net
losses on investments
Exchange losses
Net losses on investments
Net movement in funds
Reconciliation of funds
Total funds brought
forward
Total funds carried
forward		 Unrestricted
Expendable
Total
Funds
Funds
Endowment
2023
£’000
£’000
£’000
3,240
-
3,240
3,240
-
3,240
-
461
461
3,364
-
3,364
338
-
338
3,702
-
3,702
3,702
461
4,163
(462)
(461)
(923)
-
(1,526)
(1,526)
-
(5,334)
(5,334)
(462)
(7,321)
(7,783)
641
115,705
116,346
179
108,384
108,563

Report and Accounts – 5 April 2024

THE J ERUSALEM TRUST 5 A p r i l 2 0 2 4

NOTES TO THE ACCOUNTS

Appendix A

The amount payable in the year ended 5 April 2024 consisted of the following:

Christian Education
Bible Society
Christian Education Movement
Small Grants Scheme
Net grants payable/cancelled up to £20,000
Christian Evangelism & Relief Overseas
Catholic Agency for Overseas Development (CAFOD)
Christian Solidarity Worldwide
Five Talents
Flame International
Middle East Media
Mosaic Middle East (previously Foundation for Reconciliation in the Middle East)
One for Israel
Open Doors with Brother Andrew
Wycliffe Bible Translators
Net grants payable/cancelled up to £20,000
Christian Media
Centre for Cultural Witness
Jerusalem Productions Ltd
Passion Trust
Premier Christian Media Trust
SAT 7 Trust Ltd - Oxford
Net grants payable/cancelled up to £20,000
Evangelism & Christian Mission in the UK
A ROCHA UK
Beyond the Streets
Bible Reading Fellowship
Bringing Hope
Church Revitalisation Trust
Harbour Church Portsmouth
Home for Good
Hope Into Action
Luis Palau Evangelistic Association - Europe
Nehemiah Project - London
St Mary's Andover
St Werburgh’s Derby
Tearfund
Urban Expression
Net grants payable/cancelled up to £50,000
Christian Art
Zurbaran Trust
Net grants payable/cancelled up to £15,000
Total grants payable per Statement of Financial Activities		 60,000
50,000
150,000
12,000
25,000
50,000
25,000
60,000
35,000
21,000
70,000
100,000
20,350
69,650
24,000
1,234,500
40,000
100,000
60,000
44,000
60,000
60,000
52,000
50,000
500,000
120,000
254,000
126,000
114,000
52,000
72,000
60,000
200,000
89,000
698,968
40,000
4,400
4,802,868

Report and Accounts – 5 April 2024

THE J ERUSALEM TRUST 5 A p r i l 2 0 2 4

NOTES TO THE ACCOUNTS

Appendix A (continued)

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 Evangelism & Relief Overseas
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 in the UK
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 2024