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2022-04-05-accounts

Charity registration number 203770

THE FARINGDON COLLECTION TRUST

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022

THE FARINGDON COLLECTION TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Lord C Faringdon
Lady S Faringdon
M Drury CBE
F Russell
The Hon. J H Henderson
L Henderson
R Wheeler (Appointed 21 July 2021)
Secretary Sharon Lander
Charity number 203770
Registered office The Estate Office
Buscot Park
Faringdon
Oxfordshire
SN7 8BU
Auditor Critchleys Audit LLP
Beaver House
23-38 Hythe Bridge Street
Oxford
OX1 2EP
Bankers Lloyds TSB Bank plc
8 Market Place
Faringdon
SN7 7HN
Solicitors Tanners LLP
Lancaster House
Thomas Street
Cirencester
GL7 2AX
Investment managers Cazenove Capital
1 London Wall Place
London
EC2Y 5AU

THE FARINGDON COLLECTION TRUST

CONTENTS

Page
Chairman's statement 1
Trustees' report 2 - 4
Independent auditor's report 5 - 8
Statement of financial activities 9 - 10
Balance sheet 11
Notes to the financial statements 12 - 27

THE FARINGDON COLLECTION TRUST

CHAIRMAN'S STATEMENT

FOR THE YEAR ENDED 5 APRIL 2022

Visitor numbers rose to 41,116 (2021: 34,498) which reflected our effective end of lockdown in July and the possibility of opening the house to the public and by extending the garden opening until the end of October again.

The endowment fund after a good recovery last year had a negative overall rate of return of -8.5% over the twelve months to 5 April 2022. Income projections suggest that the outcome for the present year to April 2023 will be similar to 2022 - £160,000 - £170,000.

Markets remain unpredictable and inflation looks rife, with political world order looking very unsettled. We remain fully invested in a very wide cross section of international securities disguised by the fact that it is heavily weighted in investment trusts.

.............................. Lord C Faringdon Chairman Date: .........................

THE FARINGDON COLLECTION TRUST

TRUSTEES' REPORT

FOR THE YEAR ENDED 5 APRIL 2022

The Trustees present their annual report and financial statements for the year ended 5 April 2022.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's governing document, the Charities Act 2011 and "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)" (effective 1 January 2019).

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.

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake for public benefit.

Achievements and performance

Due to Covid restrictions the Gardens only were open every day from 1st April to 21st July and when lockdown restrictions were lifted (21st July) the house and tearoom opened and reverted to a normal open season (house and gardens closed every other weekend). The house and tearoom closed the end of September with the Garden opening being extended to 31st October 2021. This resulted in visitor numbers for the season of 41,116.

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

Financial review

Total income for the year amounted to £252,826, an increase of £37,428 over the previous year. The house and tearoom reopened at the end of July 2021 following the Covid-19 pandemic.

Total expenditure amounted to £231,761, an increase of £17,567 over the previous year.

This created net income for the year of £21,065 compared to net income of £1,204 in 2021.

The market value of the Trust’s investment portfolio was £6,492,621 at 5 April 2022. There was a net loss on revaluation of the portfolio of £716,145.

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 2022, the overall (total) rate of return on the Portfolio was -8.5% (2021: +36.8%).

The Trustees consider the capital value of the investment monies (at £6.5m) is appropriate and the performance of the funds remains satisfactory in the current market conditions.

THE FARINGDON COLLECTION TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

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 £6,492,621 at 5 April 2022 (2021: £7,215,906), and unrestricted funds totalled £1,789,599 (2021: £1,761,394).

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 c) Water Tank and water supply report d) Humidity and Environment Control e) Tree Inspections

Plans for future periods

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.

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 Trustees who served during the year and up to the date of signature of the financial statements were: Lord C Faringdon Lady S Faringdon M Drury CBE Sir Richard Carew Pole OBE DL (Resigned 27 June 2021) F Russell The Hon. J H Henderson L Henderson R Wheeler (Appointed 21 July 2021)

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.

THE FARINGDON COLLECTION TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

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 R Wheeler). Further Trustees may be co-opted, as required. There is no limit on the length of service of any Trustee.

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 year.

In preparing these financial statements, 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 Charity and enable them to ensure that the financial statements 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 Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees' report was approved by the Board of Trustees.

.............................. Lord C Faringdon Chairman Date: .............................................

THE FARINGDON COLLECTION TRUST

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF THE FARINGDON COLLECTION TRUST

Opinion

We have audited the financial statements of The Faringdon Collection Trust (the ‘Charity’) for the year ended 5 April 2022 which comprise the statement of financial activities, the balance sheet 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 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:

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 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.

Other information

The other information comprises the information included in the 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 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.

THE FARINGDON COLLECTION TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE FARINGDON COLLECTION TRUST

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 require us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the statement of Trustees' responsibilities, 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 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 145 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.

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 FARINGDON COLLECTION TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE FARINGDON COLLECTION TRUST

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

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

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

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 non-compliance. 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 is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Your attention is drawn to the fact that the charity has prepared financial statements 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)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.

THE FARINGDON COLLECTION TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE FARINGDON COLLECTION TRUST

Use of our report

This report is made solely to the Charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. 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 auditors' 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.

Critchleys Audit LLP Chartered Accountants Statutory Auditor

24 August 2022

.........................

Beaver House 23-38 Hythe Bridge Street Oxford OX1 2EP

Critchleys Audit LLP is eligible for appointment as auditor of the Charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

THE FARINGDON COLLECTION TRUST

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 5 APRIL 2022

Current financial year

Unrestricted Endowment
funds
funds
2022
2022
Notes
£
£
Income from:
Donations and gifts
3
-
-
Charitable activities
4
79,423
-
Investments
5
173,403
-
Total income
252,826
-
Expenditure on:
Raising funds
6
-
7,240
Charitable activities
7
220,779
-
Total expenditure
220,779
7,240
Net gains/(losses) on investments
11
-
(716,145)
Net incoming/(outgoing) resources before transfers
32,047
(723,385)
Gross transfers between funds
(100)
100
Net movement in funds
31,947
(723,285)
Fund balances at 6 April 2021
1,761,394
7,215,906
Fund balances at 5 April 2022
1,793,341
6,492,621		 Total
2022
£
-
79,423
173,403
252,826
7,240
220,779
228,019
(716,145)
(691,338)
-
(691,338)
8,977,300
8,285,962		 Total
2021
£
18
54,422
160,958
215,398
6,155
208,039
214,194
1,820,558
1,821,762
-
1,821,762
7,155,538
8,977,300

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

THE FARINGDON COLLECTION TRUST

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2022

Prior financial year

Unrestricted Endowment
funds
funds
2021
2021
Notes
£
£
Income from:
Donations and gifts
3
18
-
Charitable activities
4
54,422
-
Investments
5
160,958
-
Total income
215,398
-
Expenditure on:
Raising funds
6
-
6,155
Charitable activities
7
208,039
-
Total expenditure
208,039
6,155
Net gains/(losses) on investments
11
-
1,820,558
Net incoming/(outgoing) resources before transfers
7,359
1,814,403
Gross transfers between funds
150
(150)
Net movement in funds
7,509
1,814,253
Fund balances at 6 April 2020
1,753,885
5,401,653
Fund balances at 5 April 2021
1,761,394
7,215,906		 Total
2021
£
18
54,422
160,958
215,398
6,155
208,039
214,194
1,820,558
1,821,762
-
1,821,762
7,155,538
8,977,300

THE FARINGDON COLLECTION TRUST

BALANCE SHEET

AS AT 5 APRIL 2022

Notes
Fixed assets
Tangible assets
12
Heritage assets
13
Investments
14
Current assets
Stocks
15
Debtors
16
Cash at bank and in hand
Creditors: amounts falling due within
one year
17
Net current assets
Total assets less current liabilities
Capital funds
Endowment funds-general
General endowment funds
Permanent endowment
Expendable endowment
19
Income funds
Unrestricted funds		 2022
£
£
39,088
1,588,420
6,492,621
8,120,129
29,360
99,100
61,963
190,423
(24,590)
165,833
8,285,962
6,492,621
6,492,621
-
6,492,621
6,492,621
1,793,341
8,285,962		 2021
£
£
12,661
1,588,420
7,215,906
8,816,987
30,747
79,971
59,813
170,531
(10,218)
160,313
8,977,300
7,215,906
7,215,906
-
7,215,906
7,215,906
1,761,394
8,977,300		 2021
£
£
12,661
1,588,420
7,215,906
8,816,987
30,747
79,971
59,813
170,531
(10,218)
160,313
8,977,300
7,215,906
7,215,906
-
7,215,906
7,215,906
1,761,394
8,977,300
8,816,987
160,313
8,977,300
7,215,906
1,761,394
8,977,300

The financial statements were approved by the Trustees on .........................

.............................. Lord C Faringdon Chairman

THE FARINGDON COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022

1 Accounting policies

Charity information

The Faringdon Collection Trust is an unincorporated charity registered in England and Wales.

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

1.1 Accounting convention

The financial statements have been prepared in accordance with the Charity's governing document, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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)" (effective 1 January 2019). The Charity is a Public Benefit Entity as defined by FRS 102.

The Charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

The financial statements 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 the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include listed investments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

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.

1.4 Income

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.

Rental income received relating to the next financial year is carried forward in creditors.

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.

THE FARINGDON COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

1 Accounting policies

(Continued)

1.5 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.

These relate to investment management fees and are recognised on an accruals basis.

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.

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.

Irrecoverable VAT

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

1.6 Tangible fixed assets

These represent fixed assets used in the administration of the Trust.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Functional freehold property 10% - 33% per annum on cost
Fixtures and fittings 10% - 33% per annum on cost
Tearoom pavillion Enter depreciation rate via StatDB - cd198
Tenant's improvements Enter depreciation rate via StatDB - cd78
Theatre fixtures 25% per annum on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

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.

1.7 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.

THE FARINGDON COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

1 Accounting policies

(Continued)

1.8 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.9 Impairment of fixed assets

At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.10 Stocks

Stocks are stated at the lower of cost and net realisable value, and represent the cost of guidebooks, postcards and tearoom supplies.

1.11 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.12 Financial instruments

The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.

THE FARINGDON COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

2 Critical accounting estimates and judgements

In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

Investment portfolio

The Trustees rely on the investment reports provided by Cazenove Capital for the investment revaluation in the accounts.

3 Donations and gifts

Donations and gifts
Charitable
activities
Collection
opening sales
Tearoom sales
Guidebooks and
postcards
Rent from non-
functional property
2022
2022
2022
2022
£
£
£
£
Sales within
charitable
activities
10,003
24,745
1,647
-
Charitable
rental
income
-
-
-
43,028
10,003
24,745
1,647
43,028		 Total
Unrestricted
funds
2022
2021
£
£
-
18
Total
2022
Total
2021
£
£
36,395
12,471
43,028
41,951
79,423
54,422		 Total
Unrestricted
funds
2022
2021
£
£
-
18
Total
2022
Total
2021
£
£
36,395
12,471
43,028
41,951
79,423
54,422
Total
2021
£
12,471
41,951
54,422

4 Charitable activities

THE FARINGDON COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2022

4 Charitable activities

(Continued)

For the year ended 5 April 2021

Collection
opening sales
Tearoom sales Guidebooks and
postcards
Rent from non-
functional
property
£
£
£
£
Sales within charitable activities
11,301
1,095
75
-
Charitable rental income
-
-
-
41,951
11,301
1,095
75
41,951
Analysis by fund
Unrestricted funds
11,301
1,095
75
41,951		 Total
2021
£
12,471
41,951
54,422
54,422

5 Investments

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Income from listed investments 173,403 160,958
6 Raising funds
Endowment Endowment
funds funds
general general
2022 2021
£ £
Investment manager's costs 7,240 6,155
7,240 6,155

THE FARINGDON COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2022

7 Charitable activities

Collection opening costs
Tearoom costs
Guidebooks and postcards
Share of governance costs (see note 8)
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		 2022
£
195,034
19,279
1,222
215,535
5,244
220,779
2022
£
48,578
24,000
4,135
4,299
11,299
27,385
6,438
12,000
4,110
625
4,258
17,355
2,526
467
12,038
15,521
195,034		 2021
£
189,011
11,411
2,625
203,047
4,992
208,039
2021
£
49,394
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
189,011

THE FARINGDON COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

8 Governance costs

Governance
costs
£
Audit fees
5,244
5,244
Analysed between
Charitable activities
5,244		 2022
Governance
costs
£
£
5,244
4,992
5,244
4,992
5,244
4,992		 2021
£
4,992
4,992
4,992

Governance costs includes payments to the auditors of £5,244 (2021- £4,992) for audit fees.

9 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Charity during the year.

10 Employees

The Charity employed 2 part-time staff in the kiosk and 1 part time staff in the tearoom on a seasonal basis (2021: 3 in the kiosk), all earning less than £10,000. It also employed 7 part time staff as room stewards when the house reopened to the public in July 2021. In 2021 the Charity contributed to the cost of retaining the room stewards and other positions, the costs of which are included in the figures below.

There were no employees whose annual remuneration was more than £60,000.

11 Net gains/(losses) on investments

Endowment Endowment
funds funds
general general
2022 2021
£ £
(Loss)/gain on revaluation of investments (716,145) 1,804,701
Gain on sale of investments - 15,857
(716,145) 1,820,558

THE FARINGDON COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

12 Tangible fixed assets

Functional
freehold
property
Fixtures and
fittings
£
£
Cost
At 6 April 2021
10,000
182,916
Additions
-
30,323
At 5 April 2022
10,000
213,239
Depreciation and impairment
At 6 April 2021
-
181,706
Depreciation charged in the year
-
3,896
At 5 April 2022
-
185,602
Carrying amount
At 5 April 2022
10,000
27,637
At 5 April 2021
10,000
1,210		 Tearoom
pavillion
Tenant's
improvements
£
£
13,575
29,532
-
-
13,575
29,532
13,575
29,532
-
-
13,575
29,532
-
-
-
-		 Theatre
fixtures
£
22,619
-
22,619
21,168
-
21,168
1,451
1,451		 Total
£
258,642
30,323
288,965
245,981
3,896
249,877
39,088
12,661

THE FARINGDON COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

13 Heritage assets

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.

The heritage assets represent the paintings, furniture and objects d’art which form the Faringdon Collection. British art, especially of the 19th and 20th centuries, is particularly well represented in the Collection. The cost of £1,588,420 relates to heritage assets purchased since 1994. The Trustees have not recognised the value of the assets forming the original Collection in the interests of security.

A summary of the movements in heritage assets in the previous four years is provided below:

Year ended 5 April 2022 and 5 April 2021 No additions

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		 £
950
9,942
3,250
12,730		 £
950
9,942
3,250
12,730
26,872
£
7,500
2,114
9,614
£
3,150
11,280		 £
7,500
2,114
9,614
14,430

THE FARINGDON COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2022

14 Fixed asset investments

Listed
investments
£
Cost or valuation
At 6 April 2021
7,027,281
Unrealised losses on revaluation
(716,145)
Disposals
-
At 5 April 2022
6,311,136
Carrying amount
At 5 April 2022
6,311,136
At 5 April 2021
7,027,281
Investments at fair value (market price) comprise:
Listed equities
15
Stocks
Guide books, postcards and greeting cards
Tearoom stock
16
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income		 Cash in
portfolio
188,625
-
(7,140)
181,485
181,485
188,625
2022
£
6,311,136
2022
£
28,193
1,167
29,360
2022
£
21,069
20,602
57,429
99,100		 Total
£
7,215,906
(716,145)
(7,140)
6,492,621
6,492,621
7,215,906
2021
£
7,027,281
2021
£
28,644
2,103
30,747
2021
£
6,909
1,338
71,724
79,971

THE FARINGDON COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2022

17
Creditors: amounts falling due within one year
Notes
Deferred income
18
Trade creditors
Accruals and deferred income
18
Deferred income
Arising from rent received in advance
Deferred income is included in the financial statements as follows:
Deferred income is included within:
Current liabilities
Movements in the year:
Deferred income at 6 April 2021
Released from previous periods
Resources deferred in the year
Deferred income at 5 April 2022		 2022
£
3,488
12,540
8,562
24,590
2022
£
3,488
2022
£
3,488
3,488
(3,488)
3,488
3,488		 2021
£
3,488
90
6,640
10,218
2021
£
3,488
2021
£
3,488
3,488
(3,488)
3,488
3,488

THE FARINGDON COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

19 Endowment funds

Endowment funds represent assets which must be held permanently by the Charity. Income arising on the endowment funds can be used in accordance with the objects of the Charity and is included as unrestricted income. Any capital gains or losses arising on the assets form part of the fund.

Balance at
6 April 2020
£
Expendable endowments
Expendable
endowment fund
5,401,653
5,401,653		 Incoming
resources
£
-
-		 Movement in funds
Resources
expended
Transfers
Revaluations
gains and
losses
Balance at
6 April 2021
£
£
£
£
(6,155)
(150)
1,820,558
7,215,906
(6,155)
(150)
1,820,558
7,215,906		 Incoming
resources
£
-
-		 Movement in funds
Resources
expended
Transfers
Revaluations
gains and
losses
Balance at
5 April 2022
£
£
£
£
(7,240)
100
(716,145)
6,492,621
(7,240)
100
(716,145)
6,492,621		 Movement in funds
Resources
expended
Transfers
Revaluations
gains and
losses
Balance at
5 April 2022
£
£
£
£
(7,240)
100
(716,145)
6,492,621
(7,240)
100
(716,145)
6,492,621
6,492,621

THE FARINGDON COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2022

20
Analysis of net assets between funds
Unrestricted
funds
Endowment
funds
2022
2022
£
£
Fund balances at 5
April 2022 are
represented by:
Tangible assets
39,088
-
Heritage assets
1,588,420
-
Investments
-
6,492,621
Current assets/(liabilities)
165,833
-
1,793,341
6,492,621		 Total
Unrestricted
funds
Endowment
funds
2022
2021
2021
£
£
£
39,088
12,661
-
1,588,420
1,588,420
-
6,492,621
-
7,215,906
165,833
160,313
-
8,285,962
1,761,394
7,215,906		 Total
2021
£
12,661
1,588,420
7,215,906
160,313
8,977,300

THE FARINGDON COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

21 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 20a)

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 20b)

2022 2021 £ £ Additional rent Gross rent collected by Safemove Property Management Limited 43,027 41,951 Rent from functional property (see note 20c) 9,500 11,225 Net rents receivable by Trustees from investment property (see note 20d) 34,467 33,561

Tenants’ obligations

Landlord’s obligations

Other provisions

THE FARINGDON COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

21 Related party transactions

(Continued)

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.

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.

20d 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%).

20e 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.

20f 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.

THE FARINGDON COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2022

21 Related party transactions

(Continued)

Safemove Property Management Limited

The company is wholly owned by James Henderson, Trustee. During the year the Charity paid Safemove Property Management Limited £5,000 (2021: £5,000) for service charges at Brompton Square. At the year end £7,800 (2021: £6,933) was owed to the Charity by Safemove Property Management Limited.

F&H Estate Management Company Limited

James Henderson, Trustee, owns one third of the shares in this company. During the year the Charity paid F&H Estate Management Company Limited £26,337 (2021: £23,668) for management fees, inventory costs and other collection opening costs. At the year end £1,173 (2021: £1,173) was owed to the Charity by F&H Estate Management Company Limited, and the Charity owed the company £27 (2021: £Nil).

Lord Faringdon Farms & Gardens

James Henderson, Trustee, owns one third of this partnership. During the year the Charity paid Lord Faringdon Farms & Gardens £33,399 (2021: £27,273) for grounds maintenance costs, insurance and other collection opening costs. The Charity also received £12,664 (2021: £7,208) from the partnership in respect of ice cream sales and contributions to collection opening costs. At the year end £15,902 (2021: £3,238) was owed to the Charity by Lord Faringdon Farms & Gardens, and the Charity owed the partnership £76 (2021: £Nil).