2021-04-05-accounts

THE FARINGDON COLLECTION TRUST

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2021

Charity Registration No. 203770

THE FARINGDON COLLECTION TRUST

CONTENTS

	Page
Legal and administrative information	1
Chairman’s statement	2
Trustees’ report	3
Auditors’ report	7
Statement of financial activities 2021	12
Statement of financial activities 2020	13
Balance sheet	14
Notes to the financial statements	15

Page 1

THE FARINGDON COLLECTION TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees	Lord Faringdon – Chairman
	Lady Faringdon
	M D Drury CBE
	Sir Richard Carew Pole OBE DL
	F G S Russell
	Hon. J H Henderson
	L M Henderson
Secretary	Sharon Lander
Registered address	The Estate Office
	Buscot Park
	Faringdon
	Oxfordshire
	SN7 8BU
Auditors	Critchleys Audit LLP
	Beaver House
	23-38 Hythe Bridge Street
	Oxford
	OX1 2EP
Bankers	Lloyds TSB Bank plc
	8 Market Place
	Faringdon
	SN7 7HN
Investment managers	Cazenove Capital
	1 London Wall Place
	London
	EC2Y 5AU
Solicitors	Tanners LLP
	Lancaster House
	Thomas Street
	Cirencester
	GL7 2AX

Page 2

THE FARINGDON COLLECTION TRUST

CHAIRMAN’S STATEMENT

FOR THE YEAR ENDED 5 APRIL 2021

Visitor numbers remained constant at 34,498 (v. 35,000 in 2020) but it was not possible to open the Collection in Buscot House or in London because of lockdown legislation and social distancing requirements. Therefore the only attraction for visitors was the gardens and the fresh air at Buscot and only a handful of individual visitors came to Brompton Square.

The balance sheet shows the investment recovery in value of the Endowment Fund – the capital losses sustained in 2020 have been virtually repaired and income projections suggest a similar outcome for 2022 (£160,000) as in the current year.

The National Trust Conservation and Skills Centre is still on hold and half the personnel at the local office have left. The present direction of the National Trust is being questioned.

We hope to open the Collection as soon as we are allowed to, but social distancing within the House will remain a problem. Tentatively, we should open on 23[rd] June, but it looks more likely to be four weeks later.

…………………………. Lord Faringdon Chairman

Date: 27 June 2021

Page 3

THE FARINGDON COLLECTION TRUST

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 5 APRIL 2021

The Trustees present their report together with the financial statements of the charity for the year ended 5 April 2021. The financial statements comply with the Charities Act 2011, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with FRS 102.

Structure, governance and management

The Trust is an unincorporated Trust, constituted under a Deed of Gift, dated 9 November 1956, and Settlement, dated 24 March 1958.

The original property of the Trust was the Collection of chattels and a permanent endowment fund, which subsequently received further gifts of chattels, property and endowment funds.

The Trust is managed by a board of Trustees. The Trustees meet formally once a year at one of the sites at which the Collection is displayed, where they agree the broad strategy and areas of activity for the Trust, including consideration of investment, reserves and risk management policies and performance. The provisions of the governing deed specify the appointment of three Trustees – the Lord Faringdon of the day (Chairman); the tenant of Buscot Park or his representative (currently J H Henderson); and a representative of the National Trust (currently M D Drury Esq). Further Trustees may be co-opted, as required. There is no limit on the length of service of any Trustee.

The Trustees keep their skill requirements under review; and, in the event that a Trustee permanently retires or additional new Trustees are required, new Trustees will be sought and a final decision on selection will be taken by the existing Trustees.

Risk management

The charity Trustees have considered the major risks to which the charity is exposed and have reviewed those risks and established systems and procedures to manage those risks.

The Trustees have considered the following risks:

1. Security of the Collection

2. Insurance of the Collection

3. Public risks and Public Liability cover

4. Suitability of investment portfolio

5. Had professional survey and reports on:

6. a) Asbestos within the House

7. b) Electrical Testing

8. c) Water Tank and water supply report

9. d) Humidity and Environment Control

10. e) Tree Inspections

Page 4

THE FARINGDON COLLECTION TRUST

REPORT OF THE TRUSTEES (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2021

Objectives and activities

The objects of the Trust are to preserve, maintain and improve the quality and the setting of the Faringdon Collection wherever it is displayed to the public. At present it is housed at Buscot Park and Brompton Square, London, and made available to the public on no less than 104 days per annum, when legislation permits.

Achievements and performance

Due to Covid restrictions the Gardens only were open every day from 1[st] June 2020 to 31[st] October 2020 (to compensate the public for lack of access to the House) with 34,498 visitors.

The Trustees reviewed the performance of the investment portfolio and believed it to be satisfactory.

Public Benefit

The Trustees confirm that they have complied with the duty in section 17(5) of the Charities Act 2011 to have due regard to the guidance published by the Charity Commission. Public benefit is achieved by making The Collection available to the public on no less than 104 days per annum. However, legislation would not permit the public opening of the House and Collection in the year ending 5 April 2021 because of social distancing rules.

Financial Review

Total income for the year amounted to £215,398, a decrease of £86,557 over the previous year. This was due to the house and tearoom being closed throughout the year due to the Covid-19 pandemic.

Total expenditure amounted to £214,194, a decrease of £39,653 over the previous year.

This created net income for the year of £1,204 compared to net income of £48,108 in 2020.

The market value of the Trust’s investment portfolio was £7,215,906 at 5 April 2021. There was a net gain on revaluation of the portfolio of £1,820,558.

Investment policy and performance

The Trustees believe the best way of protecting the purchasing power of the endowment fund is to seek out international equities with prospects of a future rising stream of income in the belief they will give the fund a superior rate of total return over the long term.

In the year to 5 April 2021, the overall (total) rate of return on the Portfolio was +36.8% (2020: -24.4%).

The Trustees consider the capital value of the investment monies (at £7.2m) is appropriate and the performance of the funds remains satisfactory in the current market conditions.

Page 5

THE FARINGDON COLLECTION TRUST

REPORT OF THE TRUSTEES (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2021

Reserves policy

The purpose of the endowment funds is to generate sufficient annual income to better display the chattels and the functional property to the public, to maintain, administer and insure them, and if possible, to improve them. Under the Trust Deed the chattels may not be realised to defray the general running expenses of the Trust, but may be realised to improve the Collection.

The Trustees’ policy is not to build up any income reserves but, over any three year period, to expend all income generated on the defined objectives of the endowment funds. Any capital appreciation is treated as inflation protection to the purchasing power of the permanent endowment to help maintain its “real” income, and hopefully, to allow it to keep pace with the international market price of chattels.

Endowment funds totalled £7,215,906 at 5 April 2021 (2020: £5,401,653), and unrestricted funds totalled £1,761,394 (2020: £1,753,885).

Future plans

The Trust will continue to preserve and improve the Faringdon Collection and its setting for the public and acquire new items when appropriate opportunities arise.

Statement of Trustees’ responsibilities

The Trustees are responsible for preparing the Trustees’ Report and the financial statements 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 financial statements 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 charity for that period. In preparing these financial statements, 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 financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with FRS 102, and the provisions of the Trust Deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 6

THE FARINGDON COLLECTION TRUST

REPORT OF THE TRUSTEES (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2021

Approved by the Trustees on 27 June 2021 and signed on their behalf by:

…………………………… Lord Faringdon Chairman of Trustees Date: 2 July 2021

Page 7

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF

THE FARINGDON COLLECTION TRUST

FOR THE YEAR ENDED 5 APRIL 2021

Opinion

We have audited the financial statements of The Faringdon Collection Trust (the “Charity”) for the year ended 5 April 2021 which comprise the Statement of Financial Activities, the Balance Sheet and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

• give a true and fair view of the state of the Charity’s affairs as at 5 April 2021 and of its income and expenditure for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;

• have been prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charity’s ability to continue as a going concern for a period of at least 12 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.

Page 8

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF

THE FARINGDON COLLECTION TRUST (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2021

Other information

The other information comprises the information included in the annual report, including the Trustees’ 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

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

• the information given in the Trustees’ report is inconsistent in any material respect with the financial statements; or

• sufficient accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records and returns; or

• we have not obtained all the information and explanations necessary for the purposes of our audit.

Responsibilities of the Trustees

As explained more fully in the Trustees’ responsibilities statement set out on page 5, 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 they 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.

Page 9

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF

THE FARINGDON COLLECTION TRUST (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2021

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 the Act and relevant regulations made or having effect thereunder.

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 is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• we identified the laws and regulations applicable to the charity through discussions with Trustees and other management, and from our commercial knowledge and experience of the client’s business sector;

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including the Charities Act 2011;

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

Page 10

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF

THE FARINGDON COLLECTION TRUST (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2021

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

• performed analytical procedures to identify any unusual or unexpected relationships;

• tested journal entries to identify unusual transactions;

• assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias; and

• investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• agreeing financial statement disclosures to underlying supporting documentation;

• reading the minutes of meetings of those charged with governance;

• enquiring of management as to actual and potential litigation and claims; and

• reviewing correspondence with HMRC and the company’s legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Page 11

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF

THE FARINGDON COLLECTION TRUST (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2021

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 the 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’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Critchleys Audit LLP, Statutory Auditor Oxford OX1 2EP Date ……………………….. 12 July 2021

Critchleys Audit LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

Page 12

THE FARINGDON COLLECTION TRUST

STATEMENT OF FINANCIAL ACTIVITIES

(Including income and expenditure account)

FOR THE YEAR ENDED 5 APRIL 2021

		Unrestricted	Endowment	Endowment	Total Funds	Total Funds
	Note	Funds	Funds		2021	2020
		£	£		£	£
Income and endowments from:
Donations	3	18		-	18	2,424
Investments		160,958		-	160,958	189,485
Rental income	4	41,951		-	41,951	41,951
Charitable activities	5	12,471	-		12,471	68,095
Total income		215,398		-	215,398	301,955
Expenditure on:
Raising funds (investment manager’s
costs)		-	6,155		6,155	7,003
Charitable activities	6	208,039	-		208,039	246,844
Total expenditure		208,039	6,155		214,194	253,847
Net income before gains/(losses)
on investments		7,359	(6,155)		1,204	48,108
Net gains/(losses) on investments	11	-	1,820,558		1,820,558	(2,004,671)
Net income/(expenditure) before		7,359	1,814,403		1,821,762	(1,956,563)
transfers
Transfer between funds		150	(150)		-	-
Net income/(expenditure) for the		7,509	1,814,253		1,821,762	(1,956,563)
year
Reconciliation of funds
Total funds brought forward		1,753,885	5,401,653		7,155,538	9,112,101
Total funds carried forward		1,761,394	7,215,906		8,977,300	7,155,538

The notes on pages 15 to 25 form part of these financial statements

Page 13

THE FARINGDON COLLECTION TRUST

STATEMENT OF FINANCIAL ACTIVITIES

(Including income and expenditure account)

FOR THE YEAR ENDED 5 APRIL 2020

		Unrestricted	Endowment	Endowment	Total Funds
	Note	Funds	Funds		2020
		£	£		£
Income and endowments from:
Donations	3	2,424		-	2,424
Investments		189,485		-	189,485
Rental income	4	41,951		-	41,951
Charitable activities	5	68,095	-		68,095
Total income		301,955		-	301,955
Expenditure on:
Raising funds (investment manager’s
costs)		-	7,003		7,003
Charitable activities	6	246,844	-		246,844
Total expenditure		246,844	7,003		253,847
Net income/(expenditure) before
gains on investments		55,111	(7,003)		48,108
Net losses on investments	11	-	(2,004,671)		(2,004,671)
Net income/(expenditure)		55,111	(2,011,674)		(1,956,563)
Reconciliation of funds
Total funds brought forward		1,698,774	7,413,327		9,112,101
Total funds carried forward		1,753,885	5,401,653		7,155,538

The notes on pages 15 to 25 form part of these financial statements

Page 14

THE FARINGDON COLLECTION TRUST

BALANCE SHEET AS AT 5 APRIL 2021

	Note		2021	2020	2020
		£	£	£	£
Fixed assets
Tangible assets	9		12,661		14,499
Heritage assets	10		1,588,420		1,588,420
Investments	11		7,215,906		5,401,653
			8,816,987		7,004,572
Current assets
Stock	12	30,747		30,001
Debtors	13	79,971		93,984
Cash at bank and in hand		59,813		42,607
		170,531		166,592
Creditors: Amounts falling due
within one year	14	(10,218)		(15,626)
Net current assets			160,313		150,966
Total assets less current liabilities			8,977,300		7,155,538
The funds of the charity
Endowment funds	15		7,215,906		5,401,653
Unrestricted funds	15		1,761,394		1,753,885
Total charity funds			8,977,300		7,155,538

Signed on behalf of the Trustees ………………………………. Lord Faringdon Chairman Date: 2 July 2021

The notes on pages 15 to 25 form part of these financial statements.

Page 15

THE FARINGDON COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2021

1 Charity information

The Faringdon Collection Trust is an unincorporated charity registered in England and Wales, Charity Number 203770. The charity is a public benefit entity.

Its registered office is: The Estate Office, Buscot Park, Faringdon, Oxfordshire SN7 8BU.

2 Accounting policies

2.1 Basis of preparation

The financial statements have been prepared under the historical cost convention, with the exception that investments are included at market value. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities (FRS 102), and the Charities Act 2011.

The presentation currency used in these accounts is pounds sterling.

2.2 Funds structure

Income from the capital fund may be used for charitable expenditure. However, the part of the capital which is a permanent endowment (ie. chattels only) cannot be used to defray running costs.

Unrestricted income funds comprise those funds which the Trustees are free to use for any purpose in furtherance of the charitable objects.

2.3 Income and endowments

All incoming resources are recognised once the charity has entitlement to the resources, it is certain that the resources will be received and the monetary value of incoming resources can be measured with sufficient reliability.

2.4 Expenditure

Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs relating to that category.

2.5 Irrecoverable VAT

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

2.6 Income from charitable activities

The income from charitable activities represents the sale of guidebooks and postcards, together with tearoom and Collection opening sales which form an integral part of the income from the opening of the Collection to the public.

Page 16

THE FARINGDON COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2021 (Continued….)

2.7 Expenditure on charitable activities

Costs of charitable activities relate to the cost of preservation, maintenance, display and the setting, including any enlargement or improvement of the Collection chattels, as well as visitor costs which include 50% of the kiosk, room steward and house heating outlays, and total cost of (and return from) running a tearoom for the public.

2.8 Governance costs

Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include those related to statutory audit and any legal fees.

2.9 Tangible fixed assets

These represent fixed assets used in the administration of the Trust and depreciation is provided so as to write off the costs of the assets over their estimated useful lives. The following rates have been applied:

Tenants’ improvements 10% per annum on cost Theatre Fixtures 10% - 33% per annum on cost Tea Room Pavilion 25% per annum on cost Fixtures and Fittings 10%-33% per annum on cost

2.10 Functional freehold property

The functional property relates to 28 Brompton Square, London, SW3 2AD, where part of the Collection is exhibited (ground floor, first floor, second floor).

Within the property there are two apartments which are let out to third parties. The property is included at its original cost in 1952 of £10,000.

No depreciation is charged as the life of the property is so long and its residual value is so high, any depreciation would be insignificant.

2.11 Heritage assets

Heritage assets comprise all the chattels and works of art as itemised in the inventory belonging to the Faringdon Collection. This consists of approximately 1,500 items of which approximately 750 are pictures. In addition there are various other items on loan from the Faringdon family.

The original endowment of assets in 1956 is not valued in the accounts since its value is unknown, but subsequent additions have been capitalised at cost. The heritage assets are not depreciated, as any depreciation would be immaterial.

Page 17

THE FARINGDON COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2021 (Continued….)

2.12 Fixed asset investments

Investments are stated at market value as at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year.

2.13 Realised gains and losses

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening market value (purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and opening market value (or purchase date if later). Realised and unrealised gains are not separated in the Statement of Financial Activities but are shown separately in note 11 to the accounts.

2.14 Stocks

Stocks are stated at the lower of cost and net realisable value.

2.15 Going concern

There are no material uncertainties about the charity’s ability to continue as a going concern.

3 Donations

Donation from the Lord Faringdon Charitable Trust (buggy purchase) Other donations 4 Rental income Rent receivable from non-functional property (see Note 16) 5 Income from charitable activities Guide books and postcards Tearoom sales Collection opening sales	2021 £ - 18 18 2021 £ 41,951 2021 £ 75 1,095 11,301 12,471	2020 £ 2,424 - 2,424 2020 £ 41,951 2020 £ 5,128 55,357 7,610 68,095

Page 18

THE FARINGDON COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2021 (Continued….)

6 Expenditure on charitable activities

Guide books and post cards Tearoom costs Collection opening costs Governance costs (note 7) Collection opening costs include the following: Insurance Grounds maintenance House maintenance Alarms and security Inventory costs 28 Brompton Square costs Contents repairs Management fees Half total kiosk wages Kiosk and toilet costs *Half total Room Stewards’ wages Half total heating costs Half total publicity costs Half total website costs Custodian fees Other collection opening costs	2021 £ 2,625 11,411 188,771 5,232 208,039 2021 £ 49,154 24,000 12,240 2,278 10,154 28,406 4,212 12,000 4,805 1,011 6,969 8,086 2,308 354 12,038 10,756 188,771	2020 £ 2,056 51,313 188,475 5,000 246,844 2020 £ 54,758 29,580 1,237 2,796 11,028 31,723 55 7,200 3,282 1,754 6,731 8,938 5,854 409 12,349 10,781 188,475

*Room Stewards’ wages paid to retain staff not covered by furlough arrangements

Page 19

THE FARINGDON COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2021 (Continued….)

7 Governance costs Auditors’ remuneration (including £240 fee protection insurance)	2021 £ 5,232	2020 £ 5,000

8 Trustees’ remuneration and staff costs

The Trustees did not receive any emoluments or reimbursed expenses during the year.

The charity employed 3 part-time staff in the kiosk on a seasonal basis (2020: 10 in the tearoom and kiosk), all earning less than £10,000. It also contributed to the cost of retaining the room stewards and other positions, the costs of which are included in the figures below.

Wages and salaries Employer’s national insurance costs Employer’s pension costs Tangible fixed assets Functional Freehold Property Tenants Improvements Theatre Fixtures Tearoom Pavilion £ £ £ £ Cost At 6 April 2020 10,000 29,532 22,619 13,575 At 5 April 2021 10,000 29,532 22,619 13,575 Depreciation At 6 April 2020 - 29,532 21,168 13,575 Charge for the year - - - - At 5 April 2021 - 29,532 21,168 13,575 Book Value 5 April 2021 10,000 - 1,451 - Book Value 5 April 2020 10,000 - 1,451 -	2021 £ 35,455 548 - 36,003 Fixtures & Fittings £ 182,916 182,916 179,868 1,838 181,706 1,210 3,048	2020 £ 40,970 503 351 41,824 Total £ 258,642 258,642 244,143 1,838 245,981 12,661 14,499

9 Tangible fixed assets

Page 20

THE FARINGDON COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2021 (Continued….)

10 Heritage Assets

The heritage assets represent the paintings, furniture and objects d’art which form the Faringdon Collection. British art, especially of the 19[th] and 20[th] centuries, is particularly well represented in the Collection.

Cost at 6 April 2020 Additions during the year Cost at 5 April 2021 A summary of the movements in heritage assets in the previous four years is provided below: Year ended 5 April 2020 Victorian silver two bottle inkstand from Estate of JLE Smith Footstool for Normanton Bed Ashot Yan – The Egg Seller Graham Sutherland – Homage to Picasso Year ended 5 April 2019 Three staff portraits by Amelia de Rougemont (Roberts) Frames for the above portraits Year ended 5 April 2018 First Intention VII – glass sculpture by Richard Jackson Balancing payment for hand carved greyhounds £11,280 Year ended 5 April 2017 Jardin Colonia watercolour by Mary Newcomb George Du Maurier picture, Pen and Ink Raymond Booth oil painting – two studies: A Wood Mouse and Harvest Mouse Bronze Roebuck statue 19thCentury Ormulu mantel clock Angus Stirling oil painting “In the Val d’Orcia” Hand carved greyhounds by Jonathan Sainsbury (50% paid) Charlotte Sulivan watercolours - Fungi	£ 1,588,420 -	£ 1,588,420 -
	1,588,420
		£ 950 9,942 3,250 12,730
		26,872
		£ 7,500 2,114
		9,614
		£ 3,150 11,280
		14,430
		£ 5,000 1,250 1,150 13,001 3,100 2,500 11,280 1,000
		38,281

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THE FARINGDON COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2021 (Continued….)

10 Heritage Assets (continued)

The nature of the Trust is to preserve, display and explain to the public the inherited collection it owns in surroundings of ongoing family homes, with recent additions to enliven it and to reflect the tastes and passions of succeeding generations. In this respect they have brought together museum quality pictures, furniture and objet d’art from the past with contemporary additions, to houses at Buscot Park and Brompton Square which are to be available to the public on 104 days a year. A catalogue of the assets held is available to visitors to the Trust.

11 Investments

Carrying value at 6 April 2020 Additions to investments at cost Disposal proceeds Unrealised gains on revaluation Realised gain on disposal Other cash movement Carrying value of listed equities at 5 April 2021 12 Stock Guide books, postcards and greetings cards Tearoom stock 13 Debtors Collection and general insurance prepayments Other debtors and accrued income	Listed Equities Cash held for Investments £ £ 5,206,901 194,752 93,652 (93,652) (93,831) 93,831 1,804,701 - 15,857 - - (6,305) 7,027,280 188,626 2021 £ 28,644 2,103 30,747 2021 £ 38,599 41,372 79,971	Total £ 5,401,653 - - 1,804,701 15,857 (6,305) 7,215,906 2020 £ 28,651 1,350 30,001 2020 £ 22,164 71,820 93,984

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THE FARINGDON COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2021 (Continued….)

14 Creditors: amounts due within one year

Trade creditors Accruals Rental income in advance	2021 £ - 6,730 3,488 10,218	2020 £ 5,537 6,601 3,488 15,626

15 Analysis of net assets between funds

	Unrestricted	Endowment	Total
	Funds	Funds	Funds 2021
	£	£	£
Fixed assets	1,601,081	7,215,906	8,816,987
Current assets	170,531	-	170,531
Current liabilities	(10,218)	-	(10,218)
Total	1,761,394	7,215,906	8,977,300

Analysis of net assets between funds (prior year)

	Unrestricted	Endowment	Total
	Funds	Funds	Funds 2020
	£	£	£
Fixed assets	1,602,919	5,401,653	7,004,572
Current assets	166,592	-	166,592
Current liabilities	(15,626)	-	(15,626)
Total	1,753,885	5,401,653	7,155,538

Page 23

THE FARINGDON COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2021 (Continued….)

16 Related party transactions

The following related party transactions relate to the Trust property at 28 Brompton Square, London, SW3 2AD.

Summary of Lease

Date of lease

19 September 1962 (as varied by Deed of Variation dated 7 July 1992)

Present tenant

Safemove Property Management Limited (see note 16a)

Term of lease 70 years from 29 September 1962 (expiring 28 September 2032)

Ground rent £225 per annum

Property 28 Brompton Square, London, SW3 2AD (see note 16b)

Additional rent Gross rent collected by Safemove Property Management Limited Rent from functional property (see note 16c) Net rents receivable by Trustees from investment property (see note 16d)	2021 £ 41,951 11,225 33,561	2020 £ 41,951 7,050 37,778

Tenants’ obligations

• 1 To pay outgoings and to provide a Caretaker

• 2 To maintain the interior of the Property

• 3 Not to make alterations without the Landlord’s Consent

• 4 To use the Property only as to residential parts for residential purposes and the remainder for temporary lettings for functions

Landlord’s obligations

• 1 To maintain the exterior and fabric of the Property

• 2 To insure the Property

• 3 Not to assign or sub-let save in respect of subletting for the residential parts

Page 24

THE FARINGDON COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2021 (Continued….)

16 Related party transactions (continued)

Other provisions

• 1 The Landlord has exclusive use of the Muniment Room (as defined in the lease)

• 16a Although management of Safemove Property Management Limited is undertaken by separate professional representatives, the Trustees consider that they effectively control the Company and consequently arrangements between Safemove Property Management Limited and the Trustees should be disclosed in the charity’s accounts as related party transactions.

• 16b 28 Brompton Square, following alterations that have been made to it, comprises public rooms on the ground, first and second floors utilised for the display of parts of the Faringdon Collection (“the Functional Property”). To facilitate the arrangements created by the lease (as varied in 1992) a letter was issued by the Directors of Safemove Property Management Limited in January 1993. In agreement with Safemove Property Management Limited, Lady Faringdon was appointed custodian of the Functional Property by the Trustees at their meeting on 17 January 1993. On their behalf, she is responsible for managing the property for public opening on two days a week (Tuesday and Thursday) including room steward duties. In addition, as custodian, she is responsible for directing the cleaning of the showrooms (and providing plants and flowers from Buscot), the maintenance of the large garden, arranging the caretaking, security cover and general maintenance of the Collection itself. These duties, sensibly, require from time to time the provision of accommodation to the Custodian Trustee to enable her to discharge her responsibilities properly.

• 16c As there are limited opportunities for the Functional Property to provide income, it was agreed by the Trustees that all entrance fees and any additional income received during the year from Lady Faringdon, who as Custodian, and in accordance with the terms of the Lease has used the Functional Property as accommodation to better fulfill her duties shall accrue to Safemove Property Management Limited. The Trustees were determined to remove any scintilla of doubt about any benefits received by any Trustee.

Accordingly the Trustees instructed the Directors of Safemove Property Management Limited to charge a commercial rate for any services or benefits received by Lady Faringdon. Accommodation (unserviced) in the functional Property provided to Lady Faringdon (who from time to time is accompanied by her husband) is currently charged at £175 per night. These charges were increased to this level with effect from 1 April 2020 following the annual review by the Directors of Safemove Property Management Limited. As a result of Covid and lockdown and to protect the income, Lady Faringdon has agreed to pay an annual fee of £10,000 as an accommodation charge whether or not she has need of it.

• 16d The third and fourth floors of the property comprise two self contained flats which are let under assured shorthold tenancies to unconnected third parties at commercial rents, though careful selection of tenants is necessary because access to the flats is only available through the Functional Property. After agents’ fees, Safemove Property Management Limited retains 20% of the rents collected (2020: 10%) and the Trustees retain 80% (2020: 90%).

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THE FARINGDON COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2021 (Continued….)

16 Related party transactions (continued)

• 16e The Landlord is entitled to utilise all rooms within the Functional Property (excluding the caretaker’s flat) for the display of the Faringdon Collection. The lease contains additional provisions for the control, regulation and display of the Collection items within the property from time to time.

• 16f The amount due from Safemove Property Management Limited at 5 April 2021 was £6,933 (2020: £14,040).

In addition, the Trust's investments in Lowland Investment Trust Company PLC and Henderson Opportunities Trust PLC (both closed-end investment Trusts) are managed by Janus Henderson Investors where Hon J H Henderson is an investment manager, and represent 27% of the total investment portfolio.