2020-07-31-accounts

REGISTERED COMPANY NUMBER: 00819630 (England and Wales) REGISTERED CHARITY NUMBER: 237934

Report of the Trustees and

Financial Statements for the Year Ended 31 July 2020

for

The Farmington Trust Limited

A D Accounts Limited (Registered Auditors) Rural Enterprise Centre Vincent Carey Road Rotherwas Hereford Herefordshire HR2 6FE

The Farmington Trust Limited

Contents of the Financial Statements for the Year Ended 31 July 2020

		Page
Report of the Trustees	1	to	13
Report of the Independent Auditors	14	to	15
Statement of Financial Activities		16
Balance Sheet	17	to	18
Cash Flow Statement		19
Notes to the Cash Flow Statement		20
Notes to the Financial Statements	21	to	32
Detailed Statement of Financial Activities	33	to	34

The Farmington Trust Limited

Report of the Trustees for the Year Ended 31 July 2020

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 July 2020. The trustees have adopted the provisions of 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).

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The Farmington Trust Limited

Report of the Trustees for the Year Ended 31 July 2020

OBJECTIVES AND ACTIVITIES

Objectives and aims

The Charity is established to promote, carry out or advance any charitable objects, and in particular any branches or aspects of education especially but not exclusively Christian Education, likely to promote morality and the acceptance of moral standards in human conduct including especially:

• 1) To promote and facilitate in any part of the world the study of the lives, writings and teachings of men and women of all religions, particularly Christian lives, writings and teachings and of moral philosophers of all nationalities.

• 2) To organise residential or other courses of study and conferences and to establish paid residential or other fellowships and to provide accommodation, food, drink and other amenities (either free of charge or on such terms as may be thought fit) to persons attending such residential or other course of study and conferences.

• 3) To establish fellowships, scholarships and prizes.

• 4) To publish and publicise the results of any residential or other courses of study or conferences or other work of the Trust.

• 5) To purchase, take on, lease or exchange, hire or otherwise acquire any real or personal property and any rights or privileges and to construct, maintain, equip and alter any buildings or erections on any such property.

These activities have been carried out in the name of the Farmington Institute which for twenty years prior to the 1 August 2015 has been based at Harris Manchester College in the University of Oxford. In the minds of many of the teachers, chaplains and schools who have been supported in their work by the Charity, the Farmington Institute has been perceived to its advantage, as being part of the College and thereby of the wider University. Against this background and as outlined in the report of the Trustees for the year ended 31 July 2015, on and with effect from 1 August 2015 the Charity and Harris Manchester College entered into a Co-Operation Agreement and in accordance with its terms:

• 1) The activities of the Farmington Institute were formally transferred to the College;

• 2) The Charity transferred the use of its building, via a sub-lease, to the College;

• 3) The Charity makes annual ongoing grants to the College to meet the total annual cost of the Farmington Institute;

• 4) The Charity, via its Trustees, is involved with the general governance of the College and more specifically the activities of the Farmington Institute;

• 5) The Charity made an additional single grant to the College of £5,001,645 which is included in the College's endowment and ring-fenced to support the common charitable purposes of the Charity and the College.

The Co-Operation Agreement provides for the relationship between the Charity and the College to be continually reviewed and, if successful, continue beyond an initial term of ten years.

The Charity aims to meet its objective indirectly by making the ongoing grants to fund the Farmington Institute at Harris Manchester College in accordance with the terms of the Co-Operation Agreement. In the year to 31st July 2020 the annual grant to the College to support the transferred activities was £359,520 (2019 - £632,561).

We summarise the activities of the Farmington Institute.

In the current and recent years the Farmington Institute has had, within the general aims set out above, the following target objectives:

• 1) To provide scholarships for teachers of RE in Secondary, Primary and Special Needs Schools. These Scholarships are tenable for up to one year and can be based either at a university or a school.The research should be of benefit to the individual teacher, the wider teaching community, and to school children.

• 2) To support head teachers by offering scholarships tenable for up to one term. The scholarships are to enablehead teachers to undertake research on values and standards, and to have time to familiarize themselves with recent educational thinking, as well as to have the time and facilities for forward planning.

• 3) To offer fellowships to members of Her Majesty's Armed Forces, to undertake research on moral and ethical leadership in the University of Oxford.

• 4) To offer short-term fellowships and bursaries to clergy and ministers of religion and academics who are involved in RE.

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The Farmington Trust Limited

Report of the Trustees for the Year Ended 31 July 2020

• 5) To disseminate recent and interesting work in RE.

• 6) To build up a network of support for those involved in RE teaching.

Public benefit

The Trustees have complied with the duty in Section 4 of the Charities Act 2006, to have due regard to public benefit guidance published by the Charity Commission.

STRATEGIC REPORT

Achievement and performance

Charitable activities

On the 1 August 2015 The Farmington Trust Limited entered into a Co-Operation Agreement with The Principals and Fellows of the Manchester Academy and Harris College in the University of Oxford. The agreement was to transfer the activities of Farmington Institute and use of the building under sub-lease to the College for an initial period of ten years with regular reviews. To support this agreement £5,001,645 of investments were transferred to the College which are ring fenced to support the common charitable purposes of the Trust and the College. The College also receive an annual grant to meet the projected annual cost of the transferred activities, which in the current year was of £359,520 (2019 - £632,561).

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The Farmington Trust Limited

Report of the Trustees for the Year Ended 31 July 2020

STRATEGIC REPORT

Achievement and performance

The achievement and performance of the Institute

Below is an extract from the report to trustees delivered by Dr. Sir Ralph Waller who is directly employed by the Trust to provide his services as Director of the Farmington Institute.

Scholars for the Academic Year 2020 to 2021

This year we have some 31 scholars with a further 14 who have deferred their scholarships until next year. All 31 have been assigned tutors and many given an association with a local university.

Induction Days

On Wednesday, the 14th of October and Thursday, the 15th of October we had two induction days for new scholars. These occasions provide an opportunity for all scholars to talk about their projects and to get feedback and ideas from the others. They often exchange email addresses and remain in contact with the other teachers who are interested in their research. I also use these occasions as an opportunity to talk about tutor management, reports, the annual conference, and the presentation. I generally suggest that when they are planning their public presentations they should invite a wide range of people who may be interested in their work including the head teacher, school governors, colleagues in their schools, local ministers and clergy, their constituency MP, the Bishop, local congregations, the Mayor, members of the council, other teachers of philosophy and religion in the area, and head teachers of other schools. Not all those invited will be able to attend but many will accept the invitation and even if they cannot attend will know about the school, about the Farmington Institute, and about the research that the teacher is doing. We have had some very positive feedback about the value of these induction days.

‘Thank you so much it was a really helpful and inspiring session’ - Kate Bonney, Head of Robert Arkenstall Primary School.

‘I would like to thank you and Sir Ralph for this morning. It was lovely to see everyone and hear about all the different projects’ - Nadia Nadeem, Rose Lane Primary School.

Support for Disadvantaged Children

Following our last meeting where it was decided to allocate £500,000 (£100,000 a year for 5 years) to the support of disadvantaged children, I set up a small working party to advise how this could best be done. The members of that group included Rebecca Hickey the Deputy Director of the Harris Federation, and David Jones the former Head of Gosford Secondary School in Kidlington, Oxford and later the Head of Bognor Regis Secondary School. We decided on the following principles:

1. We would select schools with which Farmington already had an association or which were recommended to us by others who had a connection with Farmington.

2. We would like to have schools from across the whole of the United Kingdom.

3. We would not give the same amount of money to each school. While large secondary schools and small primary schools both have great needs, we felt it would be fairer to give more to the larger school than the smaller. We decided that all schools would receive sums in the range of £2,000-£3,000 depending on the size of the school.

4. This would be a five year commitment on our behalf.

5. We will make some suggestions on how the money might be used, but that the final decision would be left to the discretion of the head teacher, provided that the money was used to help disadvantaged children.

6. We would require a short report at the end of the year from each school saying how the money had been used. These reports would be collated and then circulated to all schools involved in this project in the hope that they might provide good ideas for the future.

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The Farmington Trust Limited

Report of the Trustees for the Year Ended 31 July 2020

STRATEGIC REPORT Achievement and performance

1. We may organise a dinner each year so that we can get some face-to-face feedback from some of the head teachers.

2. The schools chosen are as follows:

Abbey College, Ramsey, Cambs (sec)	£3,000
Cadle Primary School, Swansea (prim)	£2,700
Calderside Academy, Blantyre (sec)	£3,000
Cheselbourne Village School, Dorchester (prim)	£2,500
Christ the Word Catholic School, Rhyl (prim/sec)	£2,500
Coedcae School, Llanelli (sec)	£3,000
Didcot Girls School, Oxfordshire (sec)	£3,000
Durham Gilesgate Primary School, Durham (prim)	£2,300
Emmanuel County Primary School, Rhyl (prim)	£2,700
Harris Academy Bermondsey (Sec)	£3,000
Harris Academy Tottenham (sec)	£3,000
Harris Battersea (Sec)	£3,000
Harris Merton (Sec)	£3,000
Harris Orpington (sec)	£3,000
Harris Peckham (Sec)	£3,000
Harris Primary Coleraine Park (prim)	£2,700
Harris Primary Orpington (prim)	£2,700
Harris Primary Peckham Park (prim)	£2,700
Holbeach Primary Academy, Spalding (prim)	£2,700
Integrated College Dungannon, Co Tyrone (sec)	£2,500
Jack Hunt School, Peterborough (sec)	£3,000
Mepal and Witcham C of E Primary School, Ely (prim)	£2,500
Orchard Meadows, Oxford (prim)	£2,700
Oxford Spires Academy, Oxford (sec)	£3,000
Parklands Community Primary, Birkenhead (prim)	£2,500
Pegasus Primary School, Oxford (prim)	£2,700
Pembroke Dock Community School, Pembrokeshire (prim)	£2,700
Robert Arkenstall School, Haddenham (prim)	£3,000
Southway Primary School, Bognor Regis (prim)	£2,700
Springwood Heath School, Liverpool (prim)	£2,500
St Thomas More Catholic High School Crewe (sec)	£2,700
The King's Church of England School, Wolverhampton (sec)	£3,000
The Regis School, Bognor Regis (sec)	£3,000
Tilery Primary School, Stockton on Tees (prim)	£2,300
University Academy Holbeach, Spalding (sec)	£3,000
Windale Primary, Oxford (prim)	£2,500
Woodlands Community Primary School, Birkenhead (prim)	£2,500
Total	£102,300

I am happy to report that all schools have now received their money. One school decided to select the six most disadvantaged children in the lower age range of the school and allocate a mentor and a £500 a year Farmington bursary for each child. This money will be used in the best way to help that child over the five year period. For some it would be extra tuition, for others school uniform, for others food, for others perhaps a tablet, and for all perhaps a combination of all these ways of providing help.

We have already had positive feedback from some of the schools.

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The Farmington Trust Limited

Report of the Trustees for the Year Ended 31 July 2020

STRATEGIC REPORT

Achievement and performance

‘Wow! That is amazing - thank you so much! That is the first piece of good news I have had today and has certainly put a smile on my face! The children will really benefit from such a generous donation - thank you!’ - Jacquie Fleetwood, Head, Woodlands Community Primary School.

‘Following a discussion earlier today between Sir Ralph Waller and the school Principal, Dave Oakes, please I can thank the Institute for this kind gesture, especially in the current economic climate. I can confirm that this donation will be used very effectively to support some of our disadvantaged children within the school, there will be more detail to follow on specific areas.’ - Mark Betts, Director of Business, The Regis School.

‘Thank you so much for taking the time to call today. I am thrilled that we have been selected for the grant. As I mentioned, our community is in the heart of an urban, predominantly council owned estate. I have only been at the school since January 2019, and whilst my predecessor had made huge improvements to secure a Good rating, outcomes have been consistently well below national. As a result, together with the team, I have been striving to drive up standards. Our school has also faced significant under-investment for many reasons and therefore I have been working hard to secure grants & provide a fabulous environment for the children.’ - Kim Cairns, Headteacher, Parklands Community School.

Initial indications from schools show that these are some of the ways in which they will be using this grant:

• Make an area in grounds for growing fruit and veg. ICT equipment, homework clubs

• Purchase of chrome books and uniform

• Good quality Wi-Fi and access to quiet, focused working conditions, during the school day, and after school

• Support for those with no IT at home

• Uniform (especially shoes), glasses, meals, textbooks

• Family Worker to work with the most vulnerable re attendance, behaviour, welfare and home learning. Smaller class

• sizes for year 6

• Buying devices for key students to support learning at home

• To take pupils to live music, theatre, opera, ballet - cultural experience after too long looking at screens

• Ensure pupils have access to devices, Wi-Fi and data. Free breakfast clubs, uniform and subsidised trips

• iPads and books.

Gary Bunt

I mentioned in my last report that unfortunately the Gary Bunt Cathedral Exhibition has been curtailed due to the national lockdown. The exhibition started in Liverpool, where it was a great success and captured people's imaginations. It then moved to Ely where it was immediately closed down. However, the good news is that there are some 400 books covering the exhibition, with copies of the paintings and poems, which were due to be sold in Cathedrals, and have now been donated to us. We shall distribute these books to teachers and head teachers but if any of the Farmington Trustees would like a copy or several copies then I will happily send them to you.

Support for Military Chaplains

We have continued to support chaplains to Her Majesty’s Armed Forces, as we believe that they are not only doing a very important job but also act as the Ethics Committee to the Forces. We have supported or are committed to the following activities:

1. Chaplains’ Forum to be held at Lambeth Palace for the heads of each service and their deputies.

2. Small grants for chaplains to undertake research.

3. Away days, planning days and team building for senior chaplains.

4. A vocational day in Edinburgh Castle for potential women chaplains.

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The Farmington Trust Limited

Report of the Trustees for the Year Ended 31 July 2020

STRATEGIC REPORT

Achievement and performance

1. A conference for spouses of chaplains

We have been guided in this by the needs of the Heads of the Chaplaincy Services and especially the Chaplain General Clinton Langston.

Support for Ministers of Religion

This year we are supporting two ordained ministers and one lay minister.

1. Revd Sally Welch who is working on a large project on pilgrimage at Christ Church Cathedral for children.

2. Revd Sue Butler who is writing up the work she has been doing as a pioneer minister among vulnerable people including drug addicts.

3. Myles Hartley, our former Chaplain and Director of Music, who is a lay reader undertaking a study of church music.

Investment performance

The Cazenove portfolio returned -1.38% in the year to 31st July 2020, ahead of the Trust's benchmark of -3.08% and the ARC Balanced peer group index which is estimated to have fallen by 3.1%. CPI+3% rose by 3.62% over the period (with a 1 month lag).

The latter months of 2019 were generally positive for investors, thanks to a market friendly UK election result and the more positive direction in trade talks between the US and China. However the arrival of the COVID-19 global pandemic and the subsequent temporary shutdown of global economic activity at the beginning of 2020 dominated markets for the full period. Although markets saw a bounce in latter months, for the full period equity markets were weak - and in particular the UK where the All Share index was down by nearly 18%.

A sharp drop in yields saw UK Gilts rise by over 9% and Gold also benefitted from a drop in real yields with a rise of nearly 30% in sterling terms.

Against this backdrop the portfolio's UK equities fell, but not by as much as the market. We also remained underweight against the benchmark in favour of overseas equities, which performed positively in aggregate. Our exposure in particular to China,. Technology and healthcare performed well.

Within our fixed income holdings, we remained underweight against the benchmark and with shorter duration, which hurt relative performance, although we produced a positive return overall. Our exposure to alternatives performed well and in particular our Gold exposure which contributed 1.8% to overall performance and where we ended the period with a 9.6% exposure.

At the end of the period, we also had a cash weighting of 11%. This was marginally above the upper range of 10% but felt to be appropriate given the uncertain backdrop.

The outlook remains uncertain, with the extent of the economic damage inflicted by COVID-19 in the first two quarters of 2020 only now becoming clear. In addition the second half of 2020 will see a US Presidential election, further uncertainty over COVID until a vaccine is found and hesitant consumer activity. However, Governments and central banks continue to provide open ended support for their economies and to utilise unorthodox monetary and fiscal policy to ensure that any market recession is temporary. For the medium term we are therefore happy to maintain exposure to equities, but given the uncertain outlook, are also maintaining higher than usual weightings in cash and gold.

Financial review

Financial position

For the year ended 31 July 2020, net expenditure amounted to £377,553 (2019 net income - £341,977). Net assets totalled £23,284,325 (2019 - £23,661,878). Details of the financial position of the Charity are set out in the following accounts.

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The Farmington Trust Limited

Report of the Trustees for the Year Ended 31 July 2020

STRATEGIC REPORT Financial review

Principal funding sources

Income generated from investments held in the Designated Fund and Endowment Fund, together with rental income received on properties let by the Trust.

Reserves policy

The Statement of Financial Activities summarises the incoming resources and funds expended and these are analysed between unrestricted funds, restricted funds and endowment funds. Restricted funds are funds subject to specific usage declared by donors. Unrestricted funds are expendable at the discretion of the Trustees in furtherance of the objects of the Charity. Part of an unrestricted fund may be designated as a separate fund.

Free reserves available for day to day activities amounted to £181,536 (2019 - £5,077(negative)) (unrestricted current assets less unrestricted current liabilities).

Funds held are adequate and available to meet the obligations of the trust.

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The Farmington Trust Limited

Report of the Trustees for the Year Ended 31 July 2020

STRATEGIC REPORT

Future plans

In accordance with the Co-Operation Agreement with Harris Manchester College the Charity has agreed to devote its resources for a minimum period of ten years exclusively in support of the activities of the Farmington Institute at Harris Manchester College.

Below is an extract from the report to trustees delivered by Dr. Sir Ralph Waller who is directly employed by the Trust to provide his services as Director of the Farmington Institute.

The Coming Year

I suggest that this coming year we should make some changes to our usual programme. We not only need to find £100,000 from the budget to help disadvantaged children, but we also should be thinking of how we can extend our help to more teachers in schools and through them support students. With this in mind I suggest the following:

1. Scholarships

I suggest that we award twenty scholarships for this coming academic year 2021/22. We are already advertising these and will begin to shortlist and interview in the New Year. We can ensure that the successful candidates will be of a high quality. Such a move will also enable us to keep some places for former scholars at our annual conference. This is important for continuity and ensuring that we build networks not only between present scholars, but also between past scholars and present scholars.

2. Forums for Teachers

I suggest that we set up six forums for teachers of philosophy, religion and ethics in both primary and secondary schools. I envisage that these forums would be based on the model we have used for our Head Teachers’ Forums. We should invite tutors from universities and school-based situations to head up each group of ten teachers who will meet six times a year. The hope is that these meetings will encourage teachers, build up networks of support, and spread good practice. One member of the group will be invited to lead the discussion at each meeting on a topic associated with RE teaching in which he or she is interested, and will be of interest to others. I estimate that such a programme will be of real encouragement to some sixty teachers a year at a total cost of £27,000. Some of the members of these groups may go on to become Farmington Scholars.

3. Head Teachers’ Forums

I would like to suggest that this coming year, if we are permitted to meet freely, we should establish three Head Teachers’ Forums, two for secondary heads, one in the north of England and one in the Oxford/London/Cambridge area. I would also suggest that now is the right time to establish a forum for primary school head teachers. Such a move would help eighteen head teachers, and through them many other teachers and children will benefit. The cost of these three forums I estimate will be approximately £30,000.

4. Extra meeting space

Over the last few years we have allowed the College to use Farmington rooms both as Fellows’ studies and for meetings. This has not been a problem in the past as until 2018 we were able to use the Principal’s Lodgings and more recently the King’s Mound for meetings of head teachers, Chaplains to Her Majesty’s Armed Forces and other educational gatherings. Due to their financial position, KSI Education Ltd has needed to reduce its expenditure and as a result no longer wished to pay for the lease on the King’s Mound. We have accordingly surrendered the lease and returned the building to Balliol College, at no cost to the Farmington Institute or Trust.

However we are now short of space for meetings for both ourselves and for school away days and planning days, as well as for other charities that we help. It is also an important part of our activity to bring people together from the world of education and share ideas and good practice.

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The Farmington Trust Limited

Report of the Trustees for the Year Ended 31 July 2020

STRATEGIC REPORT

In order to effectively carry out our activities, it would be very helpful and beneficial if we could take back for our own use our room on the top floor of the Farmington building, which is currently lent to a Fellow of the College, Professor Kate McLaughlin, to use as a study. The plan would be to reorganise this room as a meeting room, and in addition, to convert a space on the top floor of the Farmington building as a small area to service this room.

We are all well aware that the College also is short of space, and that this transition is something that cannot be done quickly and probably should not take place until the end of the academic year in June 2021. In order to help the College with this reallocation, I suggest that the Farmington Trust should donate £12,000 a year to the College over the next two years. Although we are simply taking back a Farmington room for our own use, we should be aware of the needs of the College and be supportive where we can. A grant of £12,000 a year could offset the cost of the College renting a room from All Souls, or from Queen Elizabeth House, or compensate for the loss of income in the event of the College using a room currently occupied by a student.

We would, moreover, want the College to feel that it could book the Farmington Library and this new meeting room, when it is not being used by us.

5. Head Teachers Papers

Last year in association with KSI Education Ltd we produced seven papers written by head teachers and paid for by KSI. These papers were written by the head teachers of Eton, Winchester, Westminster, Magdalen College School, Cokethorpe School the West London Free School, and Cheney School, Oxford. This year I have invited the head teacher of Harrow, Alastair Land, to write a paper on the importance of schools building alliances within the local community.

You will remember that the plan was to launch these papers at a reunion of all the head teachers who have belonged to our Head Teachers’ Forums in the past. Sadly this occasion had to be postponed because of the present pandemic, but it is my hope that once we are allowed to meet freely we will be able to re-organise this reunion. It will also be refreshing to be able to complete the outstanding meetings of the two current Head Teachers’ Forums.

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Recruitment and appointment of new trustees

The Trustees may from time to time appoint any person as a Trustee to fill a vacancy or as an addition to the number of Trustees. Any person shall retain his office only until the next Annual General Meeting but will then be eligible for re-election.

Most of the assets of the Charity have derived from gifts and legacies from our Founder, the late Hon. Robert Wills. These include a large amount of agricultural property in and around the town of Northleach in the Cotswolds. The balance of the liquid assets is managed by Cazenove & Co. In the recruitment and appointment of new Trustees persons have been sought who have expertise related to (i) the management of agricultural property, and in particular local knowledge of the property at Northleach; (ii) the management of our liquid investment funds; (iii) the management of charitable trusts; and (iv) the propose of the Farmington Trust as set out below under "Objectives and Activities", in particular those relating to education and research in religion and morality.

Induction and training of new trustees

After appointment all new Trustees fill in relevant forms for the Charity Commissioners and Companies House, plus conflict of interest, skills audit and acknowledge their responsibilities.

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The Farmington Trust Limited

Report of the Trustees for the Year Ended 31 July 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT Related parties

The Trustees are members of a sub-committee of the governing body of Harris Manchester College charged with overseeing the activities of the Farmington Institute.

Mr H M Henderson, Chairman of the Trustees, is a member of the governing body of Harris Manchester College and has formerly worked with Cazenove & Co, the Trust's stockbrokers.

The Rev. Dr. Sir Ralph Waller, who is directly employed by the Trust to provide his services as Director of the Farmington Institute within Harris Manchester College, is also the former Principal of Harris Manchester College.

Mr R D C Henderson, a Trustee, is a member of the investment committee of Harris Manchester College.

Sir John Kemp-Welch formerly worked with Cazenove & Co, the Trust's stockbrokers.

Mr G W Hudson, a volunteer and a member of the Finance and Investment Sub-Committee, is a member of the governing body of Harris Manchester College and has also been involved in the property development work carried out in Northleach.

Rev. Prof. Jane Shaw, a trustee, is the current Principal of Harris Manchester College.

Policy decisions of the charity are made by the Trustees with the involvement of the Company Secretary, Mr George Hudson, a volunteer and former Company Secretary, and Sir Ralph Waller, who serves as Director of the Farmington Institute. Dr Ralph Waller is also the former Principal of Harris Manchester College. On a day to day basis invoices are approved by either Sir Ralph Waller or Mr G W W Hudson, (unless an invoice is more than an agreed limit in which case approval of both parties is required) with the oversight of the Company Secretary and our accountants and subject to being within the budget. All payments are made via online banking.

The budget for the year, at which income and expenditure is forecast, is created within the Finance Sub-committee. A major element of the budget is the Ongoing Grant to Harris Manchester College for the funding of the activities of the Farmington Institute, the amount of which is determined by a formula contained within the Co-operation Agreement and is based on the average of the twelve last quarterly valuations of the endowment together with the Net Rental Income drawn from the most recently available audited financial statements. The ongoing grant in the current year was adjusted downward by agreement to reflect the significant adverse effect of the pandemic on the investment performance. This is then further approved at the Trustees meeting. A separate Investment Sub-committee reviews the investment policy about suitable investments, together with the projected income and capital growth of those investments.

Further details concerning the structure of the charity can be found in the Reference and Administrative Details.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 00819630 (England and Wales)

Registered Charity number

237934

Registered office

Harris Manchester College Mansfield Road Oxford OX1 3TD

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The Farmington Trust Limited

Report of the Trustees

for the Year Ended 31 July 2020

Trustees

H M Henderson Dr C Wills P N H Gibbs P J H Wills R D C Henderson Sir J Kemp-Welch R H Wills Hon R I H Wills I L H Ormerod Rev. Prof. J Shaw Principal Of Oxford College Dr T R Hands (appointed 18.11.19)

Finance & Investment Sub-Committee

Certain powers of the governors can be delegated to a Finance & Investment Sub-Committee. This committee shall consist of a minimum of three governors.

Members of the Finance & Investment Sub-Committee:

Mr P N H Gibbs Mr H M Henderson Sir J Kemp-Welch Mr R D C Henderson Mr G W W Hudson

Company Secretary

Mrs A L Duffell

Auditors

A D Accounts Limited (Registered Auditors) Rural Enterprise Centre Vincent Carey Road Rotherwas Hereford Herefordshire HR2 6FE

Solicitors

Burges Salmon Narrow Quay House Narrow Quay Bristol BS1 4AH

Bankers

Coutts and Co 440 The Strand London WC2R 0QS

Investment Advisors

Cazenove Capital Management Ltd 12 Moorgate London EC2R 6DA

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The Farmington Trust Limited

Report of the Trustees for the Year Ended 31 July 2020

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of The Farmington Trust Limited for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charity SORP;

• make judgements and estimates that are reasonable and prudent;

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

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

• there is no relevant audit information of which the charitable company's auditors are unaware; and

• the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

AUDITORS

The auditors, A D Accounts Limited (Registered Auditors), will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 16 November 2020 and signed on the board's behalf by:

H M Henderson - Trustee

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Report of the Independent Auditors to the Trustees of The Farmington Trust Limited

Opinion

We have audited the financial statements of The Farmington Trust Limited (the 'charitable company') for the year ended 31 July 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the charitable company's affairs as at 31 July 2020 and of its incoming resources and application of resources, including its income and expenditure, 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 Companies Act 2006.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

• the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

• the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

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

• the charitable company has not kept adequate accounting records; or

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

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

Page 14

Report of the Independent Auditors to the Trustees of The Farmington Trust Limited

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) 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 charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company'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 charitable company'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 charitable company and the charitable company's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

for and on behalf of A D Accounts Limited (Registered Auditors) Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 Rural Enterprise Centre Vincent Carey Road Rotherwas Hereford Herefordshire HR2 6FE

18 November 2020

Page 15

The Farmington Trust Limited

Statement of Financial Activities for the Year Ended 31 July 2020

Unrestricted funds Notes £ INCOME AND ENDOWMENTS FROM Donations and legacies 2 152,158 Investment income 3 351,832 Other income 56,605 Total 560,595 EXPENDITURE ON Raising funds 4 78,598 Charitable activities 5 Attributable to grant making 547,689 Total 626,287 Net gains/(losses) on investments (197,738) NET INCOME/(EXPENDITURE) (263,430) RECONCILIATION OF FUNDS Total funds brought forward 15,254,007 TOTAL FUNDS CARRIED FORWARD 14,990,577	Restricted funds £ - - - - - - - - - 9,636 9,636	Endowment funds £ - 136,417 - 136,417 32,740 - 32,740 (217,800) (114,123) 8,398,235 8,284,112	2020 Total funds £ 152,158 488,249 56,605 697,012 111,338 547,689 659,027 (415,538) (377,553) 23,661,878 23,284,325	2019 Total funds £ 352,000 491,051 52,451
				895,502 99,774 804,083
				903,857 350,332
				341,977 23,319,901
				23,661,878

The notes form part of these financial statements

Page 16

The Farmington Trust Limited

Balance Sheet 31 July 2020

Unrestricted funds Notes £ FIXED ASSETS Tangible assets 13 269,239 Investments Investments 14 6,809,156 Investment property 15 7,925,043 15,003,438 CURRENT ASSETS Debtors 16 22,678 Cash at bank 211,326 234,004 CREDITORS Amounts falling due within one year 17 (52,468) NET CURRENT ASSETS 181,536 TOTAL ASSETS LESS CURRENT LIABILITIES 15,184,974 CREDITORS Amounts falling due after more than one year 18 (194,397) NET ASSETS 14,990,577 FUNDS 20 Unrestricted funds: General fund Designated fund Restricted funds Endowment funds TOTAL FUNDS	Restricted funds £ - - - - - 9,636 9,636 - 9,636 9,636 - 9,636	Endowment funds £ - 7,938,302 345,810 8,284,112 - - - - - 8,284,112 - 8,284,112	2020 Total funds £ 269,239 14,747,458 8,270,853 23,287,550 22,678 220,962 243,640 (52,468) 191,172 23,478,722 (194,397) 23,284,325 880,228 14,110,349 14,990,577 9,636 8,284,112 23,284,325	2019 Total funds £ 270,373 15,363,139 8,262,873 23,896,385 51,198 16,087 67,285 (62,726) 4,559 23,900,944 (239,066) 23,661,878 597,884 14,656,123 15,254,007 9,636 8,398,235 23,661,878

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 July 2020.

The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006 requiring an audit of these financial statements.

The notes form part of these financial statements

continued...

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The Farmington Trust Limited

Balance Sheet - continued 31 July 2020

The trustees acknowledge their responsibilities for

• (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

• (b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been audited under the requirements of Section 145 of the Charities Act 2011.

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 16 November 2020 and were signed on its behalf by:

H M Henderson - Trustee

The notes form part of these financial statements

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The Farmington Trust Limited

Cash Flow Statement

for the Year Ended 31 July 2020

Notes Cash flows from operating activities Cash generated from operations 1 Net cash used in operating activities Cash flows from investing activities Purchase of quoted investments Purchase of investment property Sale of quoted investments Interest received Dividends received Net cash provided by investing activities Cash flows from financing activities Income attributable to endowment Expenditure attributable to endowment Net cash provided by financing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period	2020 £ (351,507) (351,507) (486,876) (7,980) 687,019 274 260,268 452,705 136,417 (32,740) 103,677 204,875 16,087 220,962	2019 £ (482,312) (482,312) (472,416) (111,706) 577,170 228 263,542 256,818 135,554 (31,708) 103,846 (121,648) 137,735 16,087

The notes form part of these financial statements

Page 19

The Farmington Trust Limited

Notes to the Cash Flow Statement for the Year Ended 31 July 2020

1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

OPERATING ACTIVITIES
Net (expenditure)/income for the reporting period (as per the Statement of Financial Activities) Adjustments for: Depreciation charges Losses/(gain) on investments Interest received Dividends received Income attributable to endowment Expenditure attributable to endowment Decrease in debtors Decrease in creditors Net cash used in operations	2020 £ (377,553) 1,134 415,538 (274) (260,268) (136,417) 32,740 28,520 (54,927) (351,507)	2019 £ 341,977 1,140 (350,332) (228) (263,542) (135,554) 31,708 31,737 (139,218)
		(482,312)

2. ANALYSIS OF CHANGES IN NET FUNDS

	At 1.8.19	Cash flow	At 31.7.20
	£	£	£
Net cash
Cash at bank	16,087	204,875	220,962
	16,087	204,875	220,962
Total	16,087	204,875	220,962

The notes form part of these financial statements

Page 20

The Farmington Trust Limited

Notes to the Financial Statements for the Year Ended 31 July 2020

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Gifts in kind are shown on the Statement of Financial Activities as donations and on the Balance Sheet as assets at their market values.

Grants are recognised once all conditions for their receipt have been met.

Investment income is accounted for on the date payable and includes attributable tax recoverable.

Rental income is recognised when receivable.

Rental premiums are recognised over the term of the lease for which they have been received.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Raising funds

Costs of generating funds comprise investment management costs and the costs associated with the maintenance and upkeep of rental properties.

Investment management costs are split between the endowment fund and the designated fund in proportion to the opening fund values.

Governance costs

Governance costs are associated with the Governance arrangements of the Charity which relate to the general running of the charity as opposed to those costs associated with the charitable activities. The costs include external audit.

Support costs are general and overhead costs which are not specific to Governance, costs of generating funds as direct charitable activities but which enable theses activities to be undertaken. These costs are allocated on a direct basis to each activity and disclosed in note 8.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

continued...

Page 21

The Farmington Trust Limited Notes to the Financial Statements - continued for the Year Ended 31 July 2020

1. ACCOUNTING POLICIES - continued

Tangible fixed assets

Leasehold property - in accordance with the lease term Improvements to property - 4% on cost Library - 10% on reducing balance

Assets costing more than £100 are capitalised at cost. On disposal of assets in the ordinary course of business adjustments are made to the depreciation charge to reflect difference between, the actual and estimated aggregate depreciation.

Investment property

Investment properties are stated at the Governors' best estimate of the market value. Any aggregate surplus or deficit arising from changes in market value is transferred to a revaluation reserve.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Designated funds have been set aside by the Trustees from assets and investments transferred from Broadfield Trust and the estate of the Honourable E R H Wills.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Endowment funds have been donated to the Charity.

A transfer is made from the Endowment Fund to the Unrestricted General Income Fund reflecting the difference between the income received on investments and the total return basis. The total return is calculated based on 3.5% of the average value of the investments over the previous twelve quarters.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Listed investments

Listed investments are stated at their market value. Any aggregate surplus or deficit arising from changes in market value is transferred to a revaluation reserve.

continued...

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The Farmington Trust Limited

Notes to the Financial Statements - continued for the Year Ended 31 July 2020

2. DONATIONS AND LEGACIES

Donations The above donations have been made for the following purposes: Kings Mound Cavendish Court The Post Office (Northleach) Gift Aid credit Other 3. INVESTMENT INCOME Rents received Dividends and interest Interest - cash deposits 4. RAISING FUNDS Investment management costs Investment management costs Cost of rental properties 5. CHARITABLE ACTIVITIES COSTS Grant funding of activities (see note 6) £ Attributable to grant making 359,520	2020 £ 152,158	2020 £ 152,158	2019 £ 352,000	2019 £ 352,000
		100,000		100,000
		-		200,000
		-		50,000
		20,108		-
		32,050		2,000
		152,158		352,000
	2020 £ 227,707 260,268 274 488,249 2020 £ 62,463 48,875 111,338 Support costs (see note 7) £ 188,169		2019 £ 227,281 263,542 228 491,051 2019 £ 61,645 38,129 99,774 Totals £ 547,689

continued...

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The Farmington Trust Limited

Notes to the Financial Statements - continued for the Year Ended 31 July 2020

6. GRANTS PAYABLE

GRANTS PAYABLE
Attributable to grant making The total grants paid to institutions during the year was as follows: Harris Manchester College - Grant B	2020 £ 359,520 2020 £ 359,520	2019 £ 632,561
		2019 £ 632,561

On the 1 August 2015 The Farmington Trust Limited entered into a Co-Operation Agreement with The Principals and Fellows of the Manchester Academy and Harris College in the University of Oxford. The agreement was to transfer the activities of Farmington Institute and use of the building under sub-lease to the College for an initial period of ten years with regular reviews. To support this agreement £5,001,645 of investments were transferred to the College which are ring fenced to support the common charitable purposes of the Trust and the College. The College also receive an annual grant to meet the projected annual cost of the transferred activities, which in the current year was £359,520 (2019 - £632,561). Included in this total grant are wages of £56,605 (2019 - £52,451) paid on behalf of the Farmington Institute and in lieu of payment to the Farmington Institute as part of the on going grant.

The ongoing grant in the current year was adjusted downward by agreement to reflect the significant adverse effect of the pandemic on the investment performance

7. SUPPORT COSTS

SUPPORT COSTS
			Governance
	Management	Finance	costs	Totals
	£	£	£	£
Attributable to grant making	182,341	608	5,220	188,169

During the previous year, the charity received a refund of £1,685 in relation to an overpayment of council tax for the Farmington building in 2015/16.

A new lease has been taken out during the year for the use of Kings Mound. The total amount payable in the year for rent and expenses was £100,001 (2019 - £100,995).

Support costs, included in the above, are as follows:

2020 Attributable to grant making £ Wages 56,605 Pensions paid for past service 6,917 Other operating leases 100,001 Office costs - Insurance 1,407 Company Secretary 7,640 Accountancy 2,730 Legal and professional costs 5,907 Depreciation of tangible and heritage assets 1,134 Carried forward 182,341	2019 Total activities £ 52,451 6,385 100,995 (1,685 774 3,005 2,590 222 1,140
	165,877

continued...

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The Farmington Trust Limited

Notes to the Financial Statements - continued for the Year Ended 31 July 2020

7. SUPPORT COSTS - continued

SUPPORT COSTS - continued
2020 Attributable to grant making £ Brought forward 182,341 Bank charges 608 Auditors' remuneration 5,220 188,169	2019 Total activities £ 165,877 525 5,120
	171,522

8. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

	2020	2019
	£	£
Auditors' remuneration	5,220	5,120
Depreciation - owned assets	1,134	1,140
Other operating leases	100,001	100,995

9. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 July 2020 nor for the year ended 31 July 2019.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 July 2020 nor for the year ended 31 July 2019.

10. STAFF COSTS

Wages and salaries Other pension costs The average monthly number of employees during the year was as follows: Working on charitable activities	2020 £ 56,605 6,917 63,522 2020 1	2019 £ 52,451 6,385
		58,836
		2019 1

No employees received emoluments in excess of £60,000.

Page 25

continued...

The Farmington Trust Limited

Notes to the Financial Statements - continued for the Year Ended 31 July 2020

11. MATERIAL TRANSFERS

The investments are managed on a "total return" basis, based on 3.5% of the average value of the investments over the previous twelve quarters. A transfer is made from the Endowment Fund to the Unrestricted General Income Fund reflecting the difference between the income received on investments and the total return basis.

12. NET GAINS/(LOSSES) ON INVESTMENT

	2020	2019
	£	£
Investment portfolio	(415,538)	350,332
Investment properties	-	-
	(415,538)	350,332

13. TANGIBLE FIXED ASSETS

COST At 1 August 2019 and 31 July 2020 DEPRECIATION At 1 August 2019 Charge for year At 31 July 2020 NET BOOK VALUE At 31 July 2020 At 31 July 2019	Improvements Leasehold to property property £ £ 295,000 4,095 27,000 2,246 1,000 82 28,000 2,328 267,000 1,767 268,000 1,849	Library £ 15,391 14,867 52 14,919 472 524	Totals £ 314,486
			44,113 1,134
			45,247
			269,239
			270,373

14. FIXED ASSET INVESTMENTS

	2020	2019
	£	£
Listed investment portfolio	14,747,458	15,363,137

Included within investments held on Stock Exchange are investment assets outside the UK of £4,355,028 (2019 - £4,347,977). All other investment assets are investment assets in the UK.

The historical cost of the listed investments, excluding cash, held at 31 July 2020 was £12,317,867 (2019 - £12,523,491).

The following investments were held at 31 July 2020 with a value in excess of 5% of the market value of listed investments:

Trojan Income Fund Polar UK Value Opportunities Fund Vanguard FTSE UK All Share Index iShare Physical Metals PLC

Page 26

continued...

The Farmington Trust Limited

Notes to the Financial Statements - continued for the Year Ended 31 July 2020

14. FIXED ASSET INVESTMENTS - continued

JPMorgan GBP Liquidity LVNAV Fund Movement in fixed asset investments Market value 1 August (excluding cash held) Additions at cost Disposal proceeds Gains/(Losses) on investment assets Accrued interest (movement) Market value at 31 July (excluding cash held) Cash held at 31 July Market value of investments 31 July 15. INVESTMENT PROPERTY FAIR VALUE At 1 August 2019 Additions At 31 July 2020 NET BOOK VALUE At 31 July 2020 At 31 July 2019
	2020		2019
	£		£
	15,244,410		14,771,994
	4,733,699		4,712,092
	(5,408,538 )		(4,589,245 )
	(415,538)		350,332
	(12,180)		(763)
	14.141.853		15,244,410
	605,605		118,729
	14,747,458		15,363,139
			£ 8,262,873 7,980 8,270,853 8,270,853 8,262,873

A formal valuation had been undertaken by Mr L G Greaves FRICS at 31 July 2020, the market value was £8,270,853.

The historical cost of the property investments, held at 31 July 2020 was £4,945,211 (2019 - £4,937,231).

16. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Other debtors Prepayments and accrued income	2020 £ 16,048 6,630 22,678	2019 £ - 51,198
		51,198

continued...

Page 27

The Farmington Trust Limited

Notes to the Financial Statements - continued for the Year Ended 31 July 2020

17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020 £ Lease premiums 44,669 Accrued expenses 7,799 52,468 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 2020 £ Lease premiums 187,397 Security premiums 7,000 194,397	2019 £ 44,669 18,057 62,726 2019 £ 232,066 7,000	2019 £ 44,669 18,057
		62,726
	239,066

18. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

19. LEASING AGREEMENTS

During the previous year, the trust entered into a three year lease with the Balliol College for the use of the King's Mound property. The lease included a break clause at 12 months so there is a nil minimum lease payment under non-cancellable operating leases.

20. MOVEMENT IN FUNDS

Unrestricted funds General fund Designated fund Restricted funds Restricted Endowment funds Endowment fund TOTAL FUNDS	At 1.8.19 £ 597,884 14,656,123 15,254,007 9,636 8,398,235 23,661,878	Net movement in funds £ (35,968) (227,462) (263,430) - (114,123) (377,553)	Transfers between funds £ 318,312 (318,312) - - - -	At 31.7.20 £ 880,228 14,110,349
				14,990,577 9,636 8,284,112
				23,284,325

continued...

Page 28

The Farmington Trust Limited

Notes to the Financial Statements - continued for the Year Ended 31 July 2020

20. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds General fund Designated fund Endowment funds Endowment fund TOTAL FUNDS Comparatives for movement in funds Unrestricted funds General fund Designated fund Restricted funds Restricted Endowment funds Endowment fund TOTAL FUNDS	Incoming resources £ 560,595 - 560,595 136,417 697,012 At 1.8.18 £ 795,701 14,392,957 15,188,658 9,636 8,121,607 23,319,901		Resources expended £ (596,563) (29,724) (626,287) (32,740) (659,027) Net movement in funds £ (99,766) 157,701 57,935 - 284,042 341,977		Gains and losses £ - (197,738) (197,738) (217,800) (415,538) Transfers between funds £ (98,051) 105,465 7,414 - (7,414) -	Movement in funds £ (35,968) (227,462) (263,430) (114,123) (377,553) At 31.7.19 £ 597,884 14,656,123 15,254,007 9,636 8,398,235 23,661,878

continued...

Page 29

The Farmington Trust Limited

Notes to the Financial Statements - continued for the Year Ended 31 July 2020

20. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds General fund Designated fund Endowment funds Endowment fund TOTAL FUNDS	Incoming resources £ 380,011 379,937 759,948 135,554 895,502	Resources expended £ (479,777) (392,372) (872,149) (31,708) (903,857)	Gains and Movement losses in funds £ £ - (99,766) 170,136 157,701 170,136 57,935 180,196 284,042 350,332 341,977	Gains and Movement losses in funds £ £ - (99,766) 170,136 157,701 170,136 57,935 180,196 284,042 350,332 341,977
				57,935 284,042
				341,977

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds General fund Designated fund Restricted funds Restricted Endowment funds Endowment fund TOTAL FUNDS	At 1.8.18 £ 795,701 14,392,957 15,188,658 9,636 8,121,607 23,319,901	Net movement in funds £ (135,734) (69,761) (205,495) - 169,919 (35,576)	Transfers between funds £ 220,261 (212,847) 7,414 - (7,414) -	At 31.7.20 £ 880,228 14,110,349
				14,990,577 9,636 8,284,112
				23,284,325

continued...

Page 30

The Farmington Trust Limited

Notes to the Financial Statements - continued for the Year Ended 31 July 2020

20. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming Resources resources expended £ £ Unrestricted funds General fund 940,606 (1,076,340 ) Designated fund 379,937 (422,096) 1,320,543 (1,498,436 ) Endowment funds Endowment fund 271,971 (64,448) TOTAL FUNDS 1,592,514 (1,562,884 )	Gains and Movement losses in funds £ £ - (135,734) (27,602) (69,761) (27,602) (205,495) (37,604) 169,919 (65,206) (35,576)

The Endowment Fund represents funds donated to the Charity.

A transfer is made from the Endowment Fund to the Unrestricted General Income Fund reflecting the difference between the income received on investments and the total return basis. The total return is calculated based on 3.5% of the average value of the investments over the previous twelve quarters.

The Designated Fund has been set aside by the governors from assets and investments transferred from Broadfield Trust and the Honourable E R H Wills.

The income generated from investments held in the Designated is included in the Unrestricted General Income Fund for the use in Charitable Activities.

Investment Management costs and net gains and losses on investments are split between the Endowment and Designated Fund in proportion to the opening fund values.

The restricted fund represents amounts donated to fund fellowships as specified by the donor.

continued...

Page 31

The Farmington Trust Limited

Notes to the Financial Statements - continued for the Year Ended 31 July 2020

20. MOVEMENT IN FUNDS - continued

Total return

	Endowment	Unapplied Total Return	Total Endowment
	£	£	£
At the beginning of the reporting period:
Gift component of the permanent endowment	5,538,795	-	5,538,795
Unapplied total return	-	2,513,629	2,513,629
	5,538,795	2,513,629	8,052,424
Movement in the reporting period:
Investment return: dividends and interest	-	136,417	136,417
Investment return: realised and unrealised gains	-	(217,800)	(217,800)
Less: investment management costs	-	(32,740)	(32,740)
		(114,123)	(114,123)
Unapplied total return allocated to income in the reporting period	-	-	-
Net movements in the reporting period	-	(114,123)	(114,123)
At the end of the reporting period
Gift component of the permanent endowment	5,538,795	-	5,538,795
Unapplied total return	-	2,399,506	2,399,506
Total	5,538,795	2,399,506	7,938,301

21. RELATED PARTY DISCLOSURES

During the year payments were made to Mr G W Hudson, the former company secretary and current member of the Finance and Sub-Committee, for reimbursements in respect of invoices paid by him on behalf of the trust in relation to the renovation of the various investment properties. The amounts totalled £2,206 (2019 - £65,361).

22. GUARANTEE

Every member of the Trust undertakes to contribute to the assets of the Trust, in the event of the same being wound up while he is a member, or within one year after he ceased to be a member, for payment of the debts and liabilities of the Trust contracted before he ceases to be a member, and of the costs, charges and expenses of winding up, and for the adjustment of the rights or the contributions among themselves such amounts as may be required not exceeding £1.

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The Farmington Trust Limited

Detailed Statement of Financial Activities for the Year Ended 31 July 2020

Unrestricted Restricted Endowment funds funds funds £ £ £ INCOME AND ENDOWMENTS Donations and legacies Donations 152,158 - - Investment income Rents received 227,707 - - Dividends and interest 123,851 - 136,417 Interest - cash deposits 274 - - 351,832 - 136,417 Other income Payroll contribution received 56,605 - - Total incoming resources 560,595 - 136,417 EXPENDITURE Investment management costs Investment management costs 29,723 - 32,740 Cost of rental properties 48,875 - - 78,598 - 32,740 Charitable activities Grants to institutions 359,520 - - Support costs Management Wages 56,605 - - Pensions paid for past service 6,917 - - Other operating leases 100,001 - - Office costs - - - Insurance 1,407 - - Company Secretary 7,640 - - Accountancy 2,730 - - Legal and professional costs 5,907 - - Depreciation of tangible and heritage assets 1,134 - - 182,341 - - Finance Bank charges 608 - -	2020 Total funds £ 152,158 227,707 260,268 274 488,249 56,605 697,012 62,463 48,875 111,338 359,520 56,605 6,917 100,001 - 1,407 7,640 2,730 5,907 1,134 182,341 608	2019 Total funds £ 352,000 227,281 263,542 228 491,051 52,451 895,502 61,645 38,129 99,774 632,561 52,451 6,385 100,995 (1,685) 774 3,005 2,590 222 1,140 165,877 525

This page does not form part of the statutory financial statements

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The Farmington Trust Limited

Detailed Statement of Financial Activities for the Year Ended 31 July 2020

Unrestricted Restricted Endowment funds funds funds £ £ £ Finance Governance costs Auditors' remuneration 5,220 - - Total resources expended 626,287 - 32,740 Net income/(expenditure) before gains and losses (65,692) - 103,677 Realised and unrealised recognised gains and losses Fixed asset investments (197,738) - (217,800) Net (expenditure)/income (263,430) - (114,123)	2020 Total funds £ 5,220 659,027 37,985 (415,538) (377,553)	2019 Total funds £ 5,120 903,857 (8,355) 350,332 341,977

This page does not form part of the statutory financial statements

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