**Charity Registration No. 1187541**
## **THE DOWNFORCE TRUST**
**ANNUAL REPORT AND INDIVIDUAL FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 JANUARY 2021**
## **THE DOWNFORCE TRUST**
## **CHARITY INFORMATION**
**Trustees**
Dr Adam Parr (Chair) Merrick Hugh Denton-Thompson OBE (appointed 25/08/2022) Matthew Mungo Tristam Soggot (appointed 25/08/2022) Charles Brecque (resigned 24/08/2023) Mary Catherine DiNunzio (resigned 24/08/2023)
**Charity Registration Number** 1187541
**CIO Number** CE020425
**Registered Office** 2 Littlegate Street Oxford OX1 1QT
**Independent Examiner** Amir Absoud, FCA Upstreamly Chartered Accountants 7 Albert Buildings 49 Queen Victoria Street London EC4N 4SA
## **THE DOWNFORCE TRUST**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees’ Report|1 – 2|
|Statement of Responsibilities|3|
|Independent Examiner’s report|4|
|Statement of Financial Activities|5|
|Balance Sheet|6|
|Statement of Cash Flows|7|
|Notes to the Financial Statements|8 - 12|
## **The Downforce Trust Trustees’ Annual Report 23 January 2020 – 31 January 2021**
## **Objectives and activities**
|Purposes|Environmental Protection and Improvement.|
|---|---|
|Main activities|Grant-making,
promotion
of
environmentally-sustainable
practices
in
agriculture, and investment in environmental technologies.|
|Public benefit|The trustees have had regard to the guidance issued by the Charity Commission
on public benefit.|
## **Achievements and Performance**
The Trust made several grants:
1. Smith School of Enterprise and the Environment at the University of Oxford, principally for their highprofile research paper on a green recovery. Co-authored by Joseph Stiglitz.
2. UCL University of London, for a strategy for regenerative agriculture in Africa, which is being implemented through the Africa Assembly established by UCL’s Institute for Global Prosperity.
3. University of Western Australia, for meta-research on how climate change, deforestation etc are increasing the risks of future pandemics.
4. We Are Here Venice, for a pilot programme to restore the Venetian Lagoon wetlands – one of the most effective ways to capture and store carbon.
5. Laudato Si’ Research Institute, Oxford. Funding for research to help develop a leadership programme focusing on climate action based on the Jesuit educational model of learning by doing with “head, hand and heart.” The International Association of Jesuits Universities (IAJU) has a vast educational network: 200 universities, 40 business schools, 800 high schools, 2,000 Fe Y Alegria Schools, JRS campus and stations, and dozens of research centres.
The second major programme was funding the research and development of an application to measure carbon in soil and land generally, as well as other benefits, using remote sensing data. This meets a need for banks and other lenders and investors, in order for them to be able to fund carbon capture in agricultural land which is by far the most immediate and biggest opportunity for negative emissions (and emissions reductions) available today. This work was co-ordinated by the Trust with a world-class team from leading universities in the UK and Australia.
## **Financial Review**
The Trust’s reserves at the end of the period were £126,000 which is sufficient to fund its future commitments. The Trust is a going concern.
## **Structure, governance and management**
The Trust is constituted as a CIO whose governing document is its Constitution dated 23 Jan 2020.
New trustees are selected by the trustees from time to time to ensure that the trustees as a whole have the relevant capabilities and experience to oversee the Trust’s activities.
**1**
## **Reference and administrative details**
|Charity name|The Downforce Trust|
|---|---|
|Other name the charity uses|Homeland Conservation|
|Registered charity number|1187541|
|CIO number|CE020425|
|Charity’s principal address|2 Littlegate Street, Oxford, OX1 1QT|
## **Names of the trustees who manage the charity**
|**Trustee name**|**Office (if any)**|**Appointment/ resignation dates where applicable**
**from start of period to date of signing the accounts**|
|---|---|---|
|Adam Parr|Chair||
|Mary Catherine DiNunzio|Trustee|resigned 24/08/2023|
|Charles Brecque|Trustee|resigned 24/08/2023|
|Merrick Hugh Denton-Thompson OBE|Trustee|appointed 25/08/2022|
|Matthew Mungo Tristam Soggot|Trustee|appointed 25/08/2022|
## **Declarations**
The trustees declare that they have approved the trustees’ report above.
Signed on behalf of the charity’s trustees:
|**Signature**
**Full name**
**Position**
**Date**||||Mungo Soggot (Nov 13, 2023 12:23 GMT)|
|---|---|---|---|---|
|||Adam Parr (Nov 13, 2023 12:30 GMT)|||
||Adam Parr||Mungo Soggot||
||Chair||Trustee||
||13.11.23||13.11.23||
**2**
## **THE DOWNFORCE TRUST**
## **STATEMENT OF RESPONSIBILITIES**
## _**FOR THE PERIOD ENDED 31 JANUARY 2021**_
## **Statement of responsibilities**
The trustees are responsible for preparing the Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the for that year.
In preparing these accounts, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the accounts; and
- prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the and enable them to ensure that the accounts comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
**3**
## **THE DOWNFORCE TRUST**
## **INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF THE DOWNFORCE TRUST (“THE CIO”)**
## _**FOR THE PERIOD ENDED 31 JANUARY 2021**_
I report to the trustees on my examination of the accounts of the CIO for the year ended 31 January 2021.
As the charity's trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the Act”).
I report in respect of my examination of the CIO’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
I am qualified to undertake the examination by being a qualified member of the Institute of Chartered Accountants in England and Wales.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination (other than that disclosed below *) which gives me cause to believe that in, any material respect:
- the accounting records were not kept in accordance with section 130 of the Charities Act; or
- • the accounts did not accord with the accounting records; or
- the accounts did not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
## 13/11/2023
## **Amir Absoud, FCA**
Member of the Institute of Chartered Accountants in England and Wales Upstreamly Chartered Accountants 7 Albert Buildings 49 Queen Victoria Street London EC4N 4SA
**4**
## **THE DOWNFORCE TRUST**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE PERIOD ENDED 31 JANUARY 2021**_
|**Notes**
**Incoming resources**
Donations and legacies
**2**
Investment income
**_Total incoming resources_**
**Resources expended**
**Expenditure on:**
Charitable activities
**3**
**_Total resources expended_**
**Net income**
**_Net movement in funds_**
**_Reconciliation of funds:_**
Total funds brought forward
**_Total funds carried forward_**|**All unrestricted**
**and restricted**
**2021 funds**
**£**
400,000
279|
|---|---|
||**400,279**|
||273,930|
||**273,930**|
||**126,349**|
||**126,349**
-|
||**126,349**|
The statement of financial activities includes all gains and losses recognised in the period.
All income and expenditure derive from continuing operations.
The Downforce Trust has no funds other than general unrestricted funds.
**5**
## **THE DOWNFORCE TRUST**
## **(CHARITY NUMBER: 1187541)**
## **BALANCE SHEET**
## _**AS AT 31 JANUARY 2021**_
|**Notes**
**Fixed Assets**
Social Investments
**6**
**Current assets**
Cash at bank and in hand
Debtors
**Liabilities**
Creditors: amounts falling due within one year
**7**
Net current assets
**Net assets**
**Funds of the charity**
Unrestricted funds
**8**
**Total charity funds**|**31 January**
**2021**
**£**
1
126,349
-
(1)|
|---|---|
||126,349|
|||
||**126,349**|
||126,349|
||**126,349**|
All assets and liabilities derive from general unrestricted funds.
13/11/2023
The accounts were approved by the Trustees on ________________.
Dr Adam Parr Chair
**6**
## **THE DOWNFORCE TRUST**
## **STATEMENT OF CASH FLOWS**
## _**FOR THE PERIOD ENDED 31 JANUARY 2021**_
|**Notes**
**Cash flows from operating activities**
Net cash provided by operations
**10**
**Cash flows from investing activities**
Interest on cash balances
Proceeds from sale of investments
Purchase of investments
**Net cash provided by/(used in) investing activities**
**Net cash from financing activities**
**Net increase in cash and cash equivalents**
Cash and cash equivalents at beginning of period
**Cash and cash equivalents at end of period**|**2021**
**£**
126,071
279
-
(1)|
|---|---|
||**126,349**
-|
||**126,349**
-|
||**126,349**|
The notes to the accounts are shown on pages 8 to 12.
**7**
## **THE DOWNFORCE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS**
## _**FOR THE PERIOD ENDED 31 JANUARY 2021**_
## **1. Accounting policies**
## **1.1 Charity information**
The Downforce Trust is a Charitable Incorporated Organisation (“the CIO”) with registration number 1187541 and was registered on 23 January 2020 in England. The Downforce Trust’s governing document is its constitution which covers a wide range of areas including charitable objects, trustee meetings, recruitment of trustees, recruitment of members, roles of responsibilities of both members and trustees, dealing with issues and conflicts of interest.
## **1.2 Basis of preparation**
These accounts have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”), “Accounting and Reporting by Charities” the Statement of Recommended Practice for charities applying FRS 102 and the Charities Act 2011.
The accounts are prepared in pound sterling, which is the functional currency of The Downforce Trust. Monetary amounts in these accounts are rounded to the nearest pound sterling.
Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
## **1.3 Public benefit entity**
The Downforce Trust is a Public Benefit Entity as defined by FRS 102.
## **1.4 Individual accounts**
In England and Wales, any parent charity where the aggregate gross income of the group, the parent charity and its subsidiaries, exceeds £1 million after consolidation adjustments must prepare consolidated accounts. The CIO’s along with its investment in Downforce Technologies Limited (a company registered in England and Wales with registered number: 12987689) has not exceeded this gross income threshold for the period ended 31 January 2021 where the investment was a subsidiary. These accounts are thus separate accounts and present information about the CIO as an individual undertaking.
Downforce Technologies Limited is developing an application to measure soil health and soil organic carbon levels, with a view to improve the use of natural capital and ultimately limit climate change. These activities are aligned with the aims of the CIO.
## **1.5 Going concern**
The CIO is reliant on generating income from investments and donations. On the basis of this income and the ongoing activities of the CIO, the Trustees are of the opinion that there are no material uncertainties that the CIO's activities are able to continue for the foreseeable future, being twelve months from the date of approval of the accounts, and therefore have prepared the accounts on a going concern basis.
## **1.6 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.
## **1.7 Incoming resources**
Income is recognised when the CIO is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations and income are recognised on receipt. Other donations are recognised once the charity has been notified of the donation unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
**8**
## **THE DOWNFORCE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE PERIOD ENDED 31 JANUARY 2021**_
## **1.7 Incoming resources (continued)**
Interest on deposit funds held is included when receivable and the amount can be measured reliably by the charity which is normally upon notification of the interest paid or payable by the bank.
## **1.8 Resources expended and allocation of support costs**
All expenditure is recognised in the period in which a liability is incurred and has been classified under headings that aggregate all costs related to that category. Charitable expenditure comprises those costs incurred by the CIO in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
The cost of overall direction and administration of each activity, comprising the staff cost and overhead costs of the central function, is apportioned based on staff time, of the amount attributable to each activity.
## **1.9 Social Investments**
The CIO only 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
## **1.10 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, and other short-term liquid investments with original maturities of three months or less.
## **1.11 Social Investments**
Social Investments in subsidiaries and associates are measured using the cost model at cost less impairment. The statement of financial activities includes the net gains and losses arising on disposals of investments throughout the year. Realised gains and losses on disposal are calculated as the difference between sales proceeds and their purchase value. The CIO does not acquire put options, derivatives or other complex financial instruments.
## **1.12 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. Accrued income and tax recoverable is included at the best estimate of the amounts receivable at the balance sheet date.
## **1.13 Creditors**
Creditors 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 are normally recognised at their settlement amount after allowing for any trade discounts due.
## **1.14 Pensions**
The CIO operates a defined contribution scheme. The obligations for contributions to the scheme are recognised as an expense in the period they are incurred.
**9**
## **THE DOWNFORCE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE PERIOD ENDED 31 JANUARY 2021**_
## **2 Donations and legacies**
## General donations
**2021 £** 400,000 400,000
All donations relate to unrestricted funds.
## **3 Analysis of resources expended**
|**Current year**
Downforce® Software
Education & Research
**_Charitable activities_**|**Direct**
**costs**
**Support**
**Costs**
**(note 4)**
**Grant**
**funding of**
**activities**
**Total**
**costs**
**£**
**£**
**£**
**£**
138,933
1,350
-
140,283
-
-
133,647
133,647|
|---|---|
||**138,933**
**1,350**
**133,647**
**273,930**|
All grants were paid to institutions to assist with their projects on reducing the climate impact of agriculture and to provide educational content of the same. Please see the Trustees ‘report for further details of the grants paid.
All expenditure was unrestricted.
## **4 Analysis of support costs**
|**Current year**
**Basis of apportionment**
Downforce® software
Allocated on time
Education & Research
Allocated on time
**Charitable Activities**|**IT**
**Governance**
**costs**
**Total**
**£**
**£**
**£**
118
1,232
1,350
-
-
-|
|---|---|
||**118**
**1,232**
**1,350**|
Governance costs comprise £1,220 insurance costs; and £12 general admin charges. No support costs relate to grantmaking activities.
**10**
## **THE DOWNFORCE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE PERIOD ENDED 31 JANUARY 2021**_
## **5 Analysis of staff costs and key management personnel**
|Wages and salaries
Social security costs
Pension costs
Health insurance|**2021**
**£**
24,570
-
2,660
437|
|---|---|
||**27,667**|
The charity trustees were not paid or received any other benefits from employment with the CIO or its subsidiary in the year neither were they reimbursed expenses during the year.
The average number of employees during the period was one and this staff member was employed to undertake direct charitable services.
No member of staff received greater than £60,000 in total benefits from the CIO during the year.
The CIO operates a defined contribution pension plan. During the year, £2,660 was recognised as an expense in relation to this plan. £nil remains payable to the pension scheme at the balance sheet date.
## **6 Social Investments**
|**_Cost_**
At 23 January 2020
Additions
Disposals
Revaluation
**At 31 January 2021**|**Subsidiary**
**Undertaking**
**£**
-
1
-
-|
|---|---|
||**1**|
All amounts relate to shares in Downforce Technologies Limited (“DTL”), a company limited by shares, registered in England, with registered number 12987689 and whose registered office is Buxton Court, Minns Business Park, Unit 3 West Way, Botley, Oxford, England, OX2 0JB.
The investment is classed as a Mixed Motive Social Investment, held partly for financial gain and partly for the furtherance of the Charity’s aims. At the year end, the CIO held 75% of the Ordinary share capital of DTL.
If the investment were accounted for under the equity method, the carrying value would be £nil due to losses incurred by DTL during its R&D phase, and the uncertainty of the future profitability of DTL. No dividends or distributions have been received from DTL.
## **7 Creditors**
|Owed to subsidiary undertakings|**2021**
**£**
1|
|---|---|
||**1**|
**11**
## **THE DOWNFORCE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE PERIOD ENDED 31 JANUARY 2021**_
## **8 Unrestricted funds**
|**Current year**
General fund|**Balance at**
**23 January**
**2020**
**Income**
**Gains**
**Expenditure**
**Balance at**
**31 January**
**2021**
**£**
**£**
**£**
**£**
**£**
-
400,279
-
(273,930)
126,349|
|---|---|
||**-**
**400,279**
**-**
**(273,930)**
**126,349**|
## **9 Related party transactions**
## There were no related party transactions during the year.
## **10 Reconciliation of net income to net cash flow from operating activities**
|Net income for the reporting period (as per the statement of financial
activities
**Adjustments for:**
Interest income
Net gains on investments
Increase in debtors
Increase in creditors
**Cash (used)/ generated from operations**|**2021**
**£**
126,349
(279)
-
-
1
**126,071**|
|---|---|
**12**