**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: ......................... 

- 1 - 



## **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. 

- 2 - 



## **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: 

   - a) Asbestos within the House 

   - 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. 

- 3 - 



## **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: 

- 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; and 

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

The Trustees are responsible for keeping 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: ............................................. 

- 4 - 



## **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: 

- give a true and fair view of the state of the charity’s affairs as at 5 April 2022 and of its incoming resources and application of resources, for the year then ended; 

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

- 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 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. 

- 5 - 



## **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: 

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

- sufficient accounting records have not been kept; or 

- the financial statements are not in agreement with the accounting records; or 

- we have not received all the information and explanations we require for our audit. 

## **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 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. 

- 6 - 



## **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: 

- 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 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. 

- 7 - 



## **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. 

- 8 - 



## **THE FARINGDON COLLECTION TRUST** 

## **STATEMENT OF FINANCIAL ACTIVITIES** 

## _**FOR THE YEAR ENDED 5 APRIL 2022**_ 

## **Current financial year** 

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

- 9 - 



## **THE FARINGDON COLLECTION TRUST** 

## **STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)** 

## _**FOR THE YEAR ENDED 5 APRIL 2022**_ 

## **Prior financial year** 

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



- 10 - 



## **THE FARINGDON COLLECTION TRUST** 

## **BALANCE SHEET** 

## _**AS AT 5 APRIL 2022**_ 

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



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

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

- 11 - 



## **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. 

- 12 - 



## **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. 

- 13 - 



## **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. 

- 14 - 



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



## **4 Charitable activities** 

- 15 - 



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



- 16 - 



## **THE FARINGDON COLLECTION TRUST** 

## **NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 5 APRIL 2022**_ 

## **7 Charitable activities** 

|Collection opening costs<br>Tearoom costs<br>Guidebooks and postcards<br>Share of governance costs (see note 8)<br>Collection opening costs include the following:<br>Insurance<br>Grounds maintenance<br>House maintenance<br>Alarms and security<br>Inventory costs<br>28 Brompton Square costs<br>Contents repairs<br>Management fees<br>Half total kiosk wages<br>Kiosk and toilet costs<br>Half total room stewards' wages<br>Half total heating costs<br>Half total publicity costs<br>Half total website costs<br>Custodian fees<br>Other collection opening costs|**2022**<br>**£**<br>195,034<br>19,279<br>1,222<br>215,535<br>5,244<br>220,779<br>**2022**<br>**£**<br>48,578<br>24,000<br>4,135<br>4,299<br>11,299<br>27,385<br>6,438<br>12,000<br>4,110<br>625<br>4,258<br>17,355<br>2,526<br>467<br>12,038<br>15,521<br>195,034|**2021**<br>**£**<br>189,011<br>11,411<br>2,625|
|---|---|---|
|||203,047<br>4,992|
|||208,039|
|||**2021**<br>**£**<br>49,394<br>24,000<br>12,240<br>2,278<br>10,154<br>28,406<br>4,212<br>12,000<br>4,805<br>1,011<br>6,969<br>8,086<br>2,308<br>354<br>12,038<br>10,756|
|||189,011|



- 17 - 



## **THE FARINGDON COLLECTION TRUST** 

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

## **8 Governance costs** 

|**Governance**<br>**costs**<br>**£**<br>Audit fees<br>5,244<br>5,244<br>Analysed between<br>Charitable activities<br>5,244|**2022**<br>Governance<br>costs<br>**£**<br>£<br>5,244<br>4,992<br>5,244<br>4,992<br>5,244<br>4,992|2021<br>£<br>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|



- 18 - 



## **THE FARINGDON COLLECTION TRUST** 

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

## **12 Tangible fixed assets** 

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



- 19 - 



**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**<br>Victorian silver two bottle inkstand from Estate of JLE Smith<br>Footstool for Normanton Bed<br>Ashot Yan – The Egg Seller<br>Graham Sutherland – Homage to Picasso<br>**Year ended 5 April 2019**<br>Three staff portraits by Amelia de Rougemont (Roberts)<br>Frames for the above portraits<br>**Year ended 5 April 2018**<br>First Intention VII – glass sculpture by Richard Jackson<br>Balancing payment for hand carved greyhounds|**£**<br>950<br>9,942<br>3,250<br>12,730|**£**<br>950<br>9,942<br>3,250<br>12,730|
|---|---|---|
||26,872||
||**£**<br>7,500<br> 2,114<br> 9,614<br> **£**<br>3,150<br>11,280|**£**<br>7,500<br>2,114|
|||9,614|
||14,430||



- 20 - 



## **THE FARINGDON COLLECTION TRUST** 

## **NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 5 APRIL 2022**_ 

## **14 Fixed asset investments** 

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



- 21 - 



## **THE FARINGDON COLLECTION TRUST** 

## **NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 5 APRIL 2022**_ 

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



- 22 - 



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



- 23 - 



## **THE FARINGDON COLLECTION TRUST** 

## **NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 5 APRIL 2022**_ 

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



- 24 - 



## **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** 

- To pay outgoings and to provide a Caretaker 

- To maintain the interior of the Property 

- Not to make alterations without the Landlord’s Consent 

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

## **Landlord’s obligations** 

- To maintain the exterior and fabric of the Property 

- To insure the Property 

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

## **Other provisions** 

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

- 25 - 



## **THE FARINGDON COLLECTION TRUST** 

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

## **21 Related party transactions** 

## **(Continued)** 

- **20a** 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. 

- **20b** 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. 

- **20c** 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. 

**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. 

- 26 - 



## **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). 

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