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2024-01-31-accounts

Charity Registration No. 1187541

THE DOWNFORCE TRUST

ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 JANUARY 2024

THE DOWNFORCE TRUST

CHARITY INFORMATION

Trustees

Dr Adam Parr (Chair) Merrick Hugh Denton-Thompson OBE Matthew Mungo Tristam Soggot

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 – 3
Statement of Responsibilities 4
Independent Examiner’s report 5
Statement of Financial Activities 6
Balance Sheet 7
Statement of Cash Flows 8
Notes to the Accounts 9 - 15

The Downforce Trust

Trustees’ Annual Report

1 February 2023 – 31 January 2024

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 maintained its activities in FY2024.

A. System of Rice Intensification (SRI)

The Trust has a team working to promote sustainable rice and has been nominated for the Earthshot Prize in 2024, the second year running. Further information: www.sri-2030.org.

B. Climate and Security

The Trust funded the secretariat of the All Party Parliamentary Group (APPG) on Climate and Security. The group brings together politicians with military and academic experts on the implications of climate change on the UK and international security. The APPG Secretariat operates independently of the Trust. Further information: www.appgclimsec.uk.

C. Nuclear power

Nuclear power is an established technology that can provide a stable base load of low-carbon energy in the UK to supplement the country’s growing renewables. There is an urgent need to support the UK Government’s policies on nuclear with effective legislation. The Trust has agreed to fund a new parliamentary group ‘Legislators for Nuclear’ co-founded by two directors of Peers for the Planet, Baroness Worthington and Lord Ravensdale. Legislators for Nuclear operates independently of the Trust. Further information: https://www.legislatorsfornuclear.org.

D. Downforce®

Downforce Technologies Limited (DTL) continued to make strong progress in product development and customer success. As a result of further fundraising, the Trust’s stake in DTL has reduced. The two trustees who were also directors of DTL stepped down from the Trust and were replaced by two new trustees. Further information: www.downforce.tech.

E. Grants

The Trust made no grants during the year.

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F. Climate litigation

The Trust launched its legal strategy in FY2024, which addresses public and private law actions to challenge unlawful government policy and private interests that cause material damage to the environment.

Plans for Future Periods

The Trust plans to continue with the programmes set out above in the coming years, as they are all ones that require sustained and consistent effort over time.

In relation to SRI-2030, we have seen that progress is very slow and that there is a need to try new ways of achieving sustainable change in agricultural practices. This is a global problem, and not just one for rice producers in developing countries. Consequently, the Trust is introducing a ‘breakthrough’ methodology that is designed to accelerate progress by breaking complex challenges into 100-day projects. This methodology, developed for the US corporate sector, has been used effectively by one of the Trustees and has been applied in a development context. We will apply it to all the Trust’s engagements, from policy work through to field trials.

Principal Risks and Uncertainties

The major risk facing the charity, and humanity, is that we are not successful in our mission. It is essential that we reduce greenhouse gas emissions by nearly half from their level in 2019 by 2030. Already, the average global temperature increase has exceeded the 1.5°C target set at COP15 in Paris in 2015; we are exceeding planetary boundaries and reaching tipping points that have serious consequences. There is a short window for us to change this trajectory. If we do not, the fate of the Trust will be the least of anyone’s worries.

Financial Review

The Trust’s accounts for the financial year are appended. The Trust holds reserves to fund its future commitments and had cash and equivalent reserves of just over £1.2 million at the end of the year. The Trust is a going concern.

The Trust held no funds as Custodian Trustee on behalf of others.

Structure, governance and management

The Trust is constituted as a CIO whose governing document is its Constitution dated 23 January 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.

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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

Names of the trustees who manage the charity
Trustee name Office (if any)
Adam Parr Chair
Mungo Soggot Trustee
Merrick Denton-Thompson Trustee

Declarations

The trustees declare that they have approved the trustees’ report above.

Signed on behalf of the charity’s trustees:

----- Start of picture text -----
Signature
Adam Parr (Sep 23, 2024 17:52 GMT+1) Matthew Soggot (Sep 23, 2024 21:41 GMT+1)
Full name Adam Parr Mungo Soggot
Chair Trustee
Date
23/09/2024
----- End of picture text -----

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THE DOWNFORCE TRUST

STATEMENT OF RESPONSIBILITIES

FOR THE YEAR ENDED 31 JANUARY 2024

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:

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.

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THE DOWNFORCE TRUST

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF THE DOWNFORCE TRUST (“THE CIO”)

FOR THE YEAR ENDED 31 JANUARY 2024

Independent examiner’s report to the trustees of The Downforce Trust

I report to the trustees on my examination of the accounts of The Downforce Trust (“the CIO”) for the year ended 31 January 2024.

Responsibilities and basis of report

As the charity trustees of the CIO, 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.

Independent examiner’s statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the Trust as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do 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.

Amir Absoud (Sep 23, 2024 22:51 GMT+1)

Date: 23[rd] September 2024

Amir Absoud FCA

Member of the Institute of Chartered Accountants in England and Wales (ICAEW)

Upstreamly Chartered Accountants 7 Albert Buildings 49 Queen Victoria Street London EC4N 4SA

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THE DOWNFORCE TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 JANUARY 2024

Notes
Incoming resources
Donations and legacies
2
Investment income
Total incoming resources
Resources expended
Expenditure on:
Charitable activities
3
Total resources expended
Net (expenditure)/income
before investment gains
Net gains on investments –
disposal of shares in Downforce
Technologies Limited
Net income
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
Restricted
Funds
2024
Total
Funds
All unrestricted,
restricted and
endowment
2023 funds
£
£
-
500,000
500,000
-
34,065
-
34,065
1,346
34,065
500,000
534,065
1,346
348,755
30,374
379,129
227,508
348,755
30,374
379,129
227,508
(314,690)
469,626
154,936
(226,162)
-
-
-
1,073,780
(314,690)
469,626
154,936
847,618
(314,690)
469,626
154,936
847,618
1,596,663
-
1,596,663
749,045
1,281,973
469,626
1,751,599
1,596,663

The statement of financial activities includes all gains and losses recognised in the period. There were no other recognised gains or losses other than those stated above.

All income and expenditure derive from continuing operations.

The Downforce Trust had no endowment funds in 2024 (2023:£nil).

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THE DOWNFORCE TRUST

(CHARITY NUMBER: 1187541)

BALANCE SHEET

AS AT 31 JANUARY 2024

Notes
Fixed Assets
Social Investments
6
Current assets
Cash at bank and in hand
Debtors
7
Liabilities
Creditors: amounts falling due within one
year
8
Net current assets
Net assets
Funds of the charity
Unrestricted funds
9
Restricted funds
10
Total charity funds		 31 January
2024
31 January
2023
£
£
67,789
67,789
1,679,061
1,531,515
8,079
323
(3,330)
(2,964)
1,683,810
1,528,874
1,751,599
1,596,663
1,281,973
1,596,663
469,626
-
1,751,599
1,596,663

All assets and liabilities derive from general unrestricted funds.

The accounts were approved by the Trustees on 23[rd] September 2024.

Adam Parr (Sep 23, 2024 17:52 GMT+1)

Dr Adam Parr Trustee

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THE DOWNFORCE TRUST

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 JANUARY 2024

Notes
Cash flows from operating activities
Net cash provided by/(used in) operations
12
Cash flows from investing activities
Interest on cash balances
Proceeds from sale of investments
Net cash provided by 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		 2024
2023
£
£
113,481
(224,867)
34,065
1,346
-
1,103,954
34,065
1,105,300
-
-
147,546
880,433
1,531,515
651,082
1,679,061
1,531,515

The notes to the accounts are shown on pages 9 to 15.

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THE DOWNFORCE TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JANUARY 2024

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 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.

1.5 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.

1.6 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.

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.

1.7 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.

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THE DOWNFORCE TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 JANUARY 2024

1.8 Financial Instruments

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.

1.9 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.

1.10 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.

1.11 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.

1.12 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.

1.13 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.

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THE DOWNFORCE TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 JANUARY 2024

2. Donations and legacies

. Donations and legacies
Alexander Mosley Charitable Trust Total
Unrestricted
Restricted
2024
2023
£
£
£
£
-
500,000
500,000
-
-
500,000
500,000
-

The grant of £500,000 from Alexander Mosley Charitable Trust was restricted to climate litigation and related expenditure.

3. Analysis of resources expended

Current year
System of Rice Intensification (SRI)
Downforce® Software
Education & Research
Nuclear power
Climate and Security
Climate Litigation
Charitable activities
Prior Year
System of Rice Intensification (SRI)
Downforce® Software
Education & Research
Charitable activities		 Direct
costs
Support
costs
(note 4)
Grant
funding of
activities
Total
costs
£
£
£
£
189,904
3,156
-
193,060
-
-
-
-
-
-
-
-
66,169
850
-
67,019
87,826
850
-
88,676
30,374
-
-
30,374
374,273
4,856
-
379,129
Direct
costs
Support
costs
(note 4)
Grant
funding of
activities
Total
costs
£
£
£
£
182,722
4,786
-
187,508
-
-
-
-
-
-
40,000
40,000
182,722
4,786
40,000
227,508

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THE DOWNFORCE TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 JANUARY 2024

4. Analysis of support costs

Current year
Basis of apportionment
System of Rice Intensification (SRI)
Allocated on time
Downforce® software
Allocated on time
Education & Research
Allocated on time
Nuclear power
Allocated on time
Climate and Security
Allocated on time
Climate Litigation
Allocated on time
Charitable Activities
Prior year
Basis of apportionment
System of Rice Intensification (SRI)
Allocated on time
Downforce® software
Allocated on time
Education & Research
Allocated on time
Charitable Activities		 IT
Governance
costs
Total
£
£
£
1,362
1,794
3,156
367
483
850
367
483
850
-
-
-
-
-
-
-
-
2,096
2,760
4,856
IT
Governance
costs
Total
£
£
£
950
3,836
4,786
-
-
-
-
-
-
950
3,836
4,786

Governance costs comprise £500 (2023: £1,500) of independent examination fees; £980 (2023: £852) of other accounting fees payable to the independent examiner; £992 (2023: £1,464) insurance costs; and £288 (2023: £20) bank fees. No support costs relate to grant-making activities.

5. Analysis of staff costs and key management personnel

Wages and salaries
Social security costs
Pension costs
Health insurance		 2024
2023
£
£
85,000
78,500
3,900
3,266
4,197
3,925
364
457
93,461
86,148

The charity trustees were not paid or received any other benefits from employment with the CIO or its subsidiary in the year (2023: £nil) neither were they reimbursed expenses during the year (2023: £nil).

The average number of employees during the period was 2 (2023: 2) and these staff were all employed to undertake direct charitable services.

No member of staff (2023: nil) 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, £4,197 (2023: £3,925) was recognised as an expense in relation to this plan. £563 (2023: £795) was payable to the pension scheme at the balance sheet date.

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THE DOWNFORCE TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 JANUARY 2024

6. Social Investments

Cost
At 1 February 2023
At 31 January 2024		 Associate
Total
£
£
67,789
67,789
67,789
67,789

All amounts relate to investments in shares of Downforce Technologies Limited (“DTL”), a company limited by shares, registered in England, with registered number 12987689 and whose registered office is 2 Littlegate Street, Oxford, England, OX1 1QT.

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 42.5% (2023: 43.7%) of the ordinary share capital of DTL. The slight decrease in shareholding was due to a small amount of new equity issued by DTL during the year which the Trust did not subscribe for.

If the investment were accounted for under the equity method, the carrying value would be £nil (2023: £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. Debtors

Other debtors
. Creditors
Trade creditors
Other creditors
Accruals
Other taxes and social security		 2024
2023
£
£
8,079
323
8,079
323
2024
2023
£
£
120
669
563
795
500
1,500
2,147
-
3,330
2,964

8. Creditors

Other creditors comprises pensions payable of £563 (2023: £795) which were paid shortly after the balance sheet date.

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THE DOWNFORCE TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 JANUARY 2024

9. Unrestricted funds

Current year
General fund
Prior year
General fund
0. Restricted funds
Current year
Climate Litigation
Prior year
General fund		 Balance at the
start of the
year
Income
Gains
Expenditure
Balance at the
end of the
year
£
£
£
£
£
1,596,663
34,065
-
(348,755)
1,281,973
1,596,663
34,065
-
(348,755)
1,281,973
Balance at the
start of the
previous year
Income
Gains
Expenditure
Balance at the
end of the
previous year
£
£
£
£
£
749,045
1,346
1,073,780
(227,508)
1,596,663
749,045
1,346
1,073,780
(227,508)
1,596,663
Balance at the
start of the
year
Income
Gains
Expenditure
Balance at the
end of the
year
£
£
£
£
£
-
500,000
-
(30,374)
469,626
-
500,000
-
(30,374)
469,626
Balance at the
start of the
previous year
Income
Gains
Expenditure
Balance at the
end of the
previous year
£
£
£
£
£
-
-
-
-
-
-
-
-
-
-

10. Restricted funds

11. Related party transactions

There are no related party transactions to disclose for 2024 (2023: nil).

12. 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/(decrease) in creditors
Cash (used)/ generated from operations		 2024
2023
£
£
154,936
847,618
(34,065)
(1,346)
-
(1,073,780)
(7,756)
(323)
366
2,964
113,481
(224,867)

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THE DOWNFORCE TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 JANUARY 2024

13. Non-Adjusting Post Balance Sheet Event

After the financial year-end, the Charity received confirmation from Alexander Mosley Charitable Trust, that the donation which was previously restricted to climate litigation and related expenditure is now unrestricted. This change was confirmed on 11[th] of September 2024, subsequent to the balance sheet date and, as such, represents a non-adjusting event under FRS 102. The financial statements for the period do not reflect this change, as it occurred after the reporting date, but it will be recognised in the subsequent financial period.

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