**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). 

Page 1 



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. 

Page 2 



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). 

Page 3 



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. 

Page 4 



The Farmington Trust Limited 

Report of the Trustees for the Year Ended 31 July 2020 

## **STRATEGIC REPORT Achievement and performance** 

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

8. 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. 

Page 5 



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. 

Page 6 



The Farmington Trust Limited 

Report of the Trustees for the Year Ended 31 July 2020 

## **STRATEGIC REPORT** 

## **Achievement and performance** 

5. 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. 

Page 7 



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. 

Page 8 



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. 

Page 9 



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. 

Page 10 



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 

Page 11 



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 

Page 12 



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 

Page 13 



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<br>funds<br>Notes<br>£<br>**INCOME AND**<br>**ENDOWMENTS FROM**<br>Donations and legacies<br>2<br>152,158<br>Investment income<br>3<br>351,832<br>Other income<br>56,605<br>**Total**<br>560,595<br>**EXPENDITURE ON**<br>Raising funds<br>4<br>78,598<br>**Charitable activities**<br>5<br>Attributable to grant making<br>547,689<br>**Total**<br>626,287<br>Net gains/(losses) on<br>investments<br>(197,738)<br>**NET**<br>**INCOME/(EXPENDITURE)**<br>(263,430)<br>**RECONCILIATION OF**<br>**FUNDS**<br>**Total funds brought forward**<br>15,254,007<br>**TOTAL FUNDS CARRIED**<br>**FORWARD**<br>14,990,577|Restricted<br>funds<br>£<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>9,636<br>9,636|Endowment<br>funds<br>£<br>-<br>136,417<br>-<br>136,417<br>32,740<br>-<br>32,740<br>(217,800)<br>(114,123)<br>8,398,235<br>8,284,112|2020<br>Total<br>funds<br>£<br>152,158<br>488,249<br>56,605<br>697,012<br>111,338<br>547,689<br>659,027<br>(415,538)<br>(377,553)<br>23,661,878<br>23,284,325|2019<br>Total<br>funds<br>£<br>352,000<br>491,051<br>52,451|
|---|---|---|---|---|
|||||895,502<br>99,774<br>804,083|
|||||903,857<br>350,332|
|||||341,977<br>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<br>funds<br>Notes<br>£<br>**FIXED ASSETS**<br>Tangible assets<br>13<br>269,239<br>**Investments**<br>Investments<br>14<br>6,809,156<br>Investment property<br>15<br>7,925,043<br>15,003,438<br>**CURRENT ASSETS**<br>Debtors<br>16<br>22,678<br>Cash at bank<br>211,326<br>234,004<br>**CREDITORS**<br>Amounts falling due within one<br>year<br>17<br>(52,468)<br>**NET CURRENT ASSETS**<br>181,536<br>**TOTAL ASSETS LESS**<br>**CURRENT LIABILITIES**<br>15,184,974<br>**CREDITORS**<br>Amounts falling due after more<br>than one year<br>18<br>(194,397)<br>**NET ASSETS**<br>14,990,577<br>**FUNDS**<br>20<br>Unrestricted funds:<br>General fund<br>Designated fund<br>Restricted funds<br>Endowment funds<br>**TOTAL FUNDS**|Restricted<br>funds<br>£<br>-<br>-<br>-<br>-<br>-<br>9,636<br>9,636<br>-<br>9,636<br>9,636<br>-<br>9,636|Endowment<br>funds<br>£<br>-<br>7,938,302<br>345,810<br>8,284,112<br>-<br>-<br>-<br>-<br>-<br>8,284,112<br>-<br>8,284,112|2020<br>Total<br>funds<br>£<br>269,239<br>14,747,458<br>8,270,853<br>23,287,550<br>22,678<br>220,962<br>243,640<br>(52,468)<br>191,172<br>23,478,722<br>(194,397)<br>23,284,325<br>880,228<br>14,110,349<br>14,990,577<br>9,636<br>8,284,112<br>23,284,325|2019<br>Total<br>funds<br>£<br>270,373<br>15,363,139<br>8,262,873<br>23,896,385<br>51,198<br>16,087<br>67,285<br>(62,726)<br>4,559<br>23,900,944<br>(239,066)<br>23,661,878<br>597,884<br>14,656,123<br>15,254,007<br>9,636<br>8,398,235<br>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... 

Page 17 



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 

Page 18 



The Farmington Trust Limited 

## Cash Flow Statement 

for the Year Ended 31 July 2020 

|Notes<br>**Cash flows from operating activities**<br>Cash generated from operations<br>1<br>Net cash used in operating activities<br>**Cash flows from investing activities**<br>Purchase of quoted investments<br>Purchase of investment property<br>Sale of quoted investments<br>Interest received<br>Dividends received<br>Net cash provided by investing activities<br>**Cash flows from financing activities**<br>Income attributable to endowment<br>Expenditure attributable to endowment<br>Net cash provided by financing activities<br>**Change in cash and cash equivalents in**<br>**the reporting period**<br>**Cash and cash equivalents at the**<br>**beginning of the reporting period**<br>**Cash and cash equivalents at the end of**<br>**the reporting period**|2020<br>£<br>(351,507)<br>(351,507)<br>(486,876)<br>(7,980)<br>687,019<br>274<br>260,268<br>452,705<br>136,417<br>(32,740)<br>103,677<br>204,875<br>16,087<br>220,962|2019<br>£<br>(482,312)<br>(482,312)<br>(472,416)<br>(111,706)<br>577,170<br>228<br>263,542<br>256,818<br>135,554<br>(31,708)<br>103,846<br>(121,648)<br>137,735<br>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**<br>**Statement of Financial Activities)**<br>**Adjustments for:**<br>Depreciation charges<br>Losses/(gain) on investments<br>Interest received<br>Dividends received<br>Income attributable to endowment<br>Expenditure attributable to endowment<br>Decrease in debtors<br>Decrease in creditors<br>**Net cash used in operations**|2020<br>£<br>(377,553)<br>1,134<br>415,538<br>(274)<br>(260,268)<br>(136,417)<br>32,740<br>28,520<br>(54,927)<br>(351,507)|2019<br>£<br>341,977<br>1,140<br>(350,332)<br>(228)<br>(263,542)<br>(135,554)<br>31,708<br>31,737<br>(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... 

Page 22 



The Farmington Trust Limited 

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

## **2. DONATIONS AND LEGACIES** 

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



continued... 

Page 23 



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<br>The total grants paid to institutions during the year was as follows:<br>Harris Manchester College - Grant B|2020<br>£<br>359,520<br>2020<br>£<br>359,520|2019<br>£<br>632,561|
|||2019<br>£<br>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<br>Attributable<br>to grant<br>making<br>£<br>Wages<br>56,605<br>Pensions paid for past service<br>6,917<br>Other operating leases<br>100,001<br>Office costs<br>-<br>Insurance<br>1,407<br>Company Secretary<br>7,640<br>Accountancy<br>2,730<br>Legal and professional costs<br>5,907<br>Depreciation of tangible and heritage assets<br>1,134<br>Carried forward<br>182,341|2019<br>Total<br>activities<br>£<br>52,451<br>6,385<br>100,995<br>(1,685<br>774<br>3,005<br>2,590<br>222<br>1,140|
|---|---|
||165,877|



continued... 

Page 24 



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<br>Attributable<br>to grant<br>making<br>£<br>Brought forward<br>182,341<br>Bank charges<br>608<br>Auditors' remuneration<br>5,220<br>188,169|2019<br>Total<br>activities<br>£<br>165,877<br>525<br>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<br>Other pension costs<br>The average monthly number of employees during the year was as follows:<br>Working on charitable activities|2020<br>£<br>56,605<br>6,917<br>63,522<br>2020<br>1|2019<br>£<br>52,451<br>6,385|
|---|---|---|
|||58,836|
|||2019<br>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**<br>At 1 August 2019 and 31 July 2020<br>**DEPRECIATION**<br>At 1 August 2019<br>Charge for year<br>At 31 July 2020<br>**NET BOOK VALUE**<br>At 31 July 2020<br>At 31 July 2019|Improvements<br>Leasehold<br>to<br>property<br>property<br>£<br>£<br>295,000<br>4,095<br>27,000<br>2,246<br>1,000<br>82<br>28,000<br>2,328<br>267,000<br>1,767<br>268,000<br>1,849|Library<br>£<br>15,391<br>14,867<br>52<br>14,919<br>472<br>524|Totals<br>£<br>314,486|
|---|---|---|---|
||||44,113<br>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<br>**Movement in fixed asset investments**<br>Market value 1 August (excluding cash held)<br>Additions at cost<br>Disposal proceeds<br>Gains/(Losses) on investment assets<br>Accrued interest (movement)<br>Market value at 31 July (excluding cash held)<br>Cash held at 31 July<br>**Market value of investments 31 July**<br>**15.**<br>**INVESTMENT PROPERTY**<br>**FAIR VALUE**<br>At 1 August 2019<br>Additions<br>At 31 July 2020<br>**NET BOOK VALUE**<br>At 31 July 2020<br>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|
|||||
||||£<br>8,262,873<br>7,980<br>8,270,853<br>8,270,853<br>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<br>Prepayments and accrued income|2020<br>£<br>16,048<br>6,630<br>22,678|2019<br>£<br>-<br>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<br>£<br>Lease premiums<br>44,669<br>Accrued expenses<br>7,799<br>52,468<br>**CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR**<br>2020<br>£<br>Lease premiums<br>187,397<br>Security premiums<br>7,000<br>194,397|2019<br>£<br>44,669<br>18,057<br>62,726<br>2019<br>£<br>232,066<br>7,000|2019<br>£<br>44,669<br>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**<br>General fund<br>Designated fund<br>**Restricted funds**<br>Restricted<br>**Endowment funds**<br>Endowment fund<br>**TOTAL FUNDS**|At 1.8.19<br>£<br>597,884<br>14,656,123<br>15,254,007<br>9,636<br>8,398,235<br>23,661,878|Net<br>movement<br>in funds<br>£<br>(35,968)<br>(227,462)<br>(263,430)<br>-<br>(114,123)<br>(377,553)|Transfers<br>between<br>funds<br>£<br>318,312<br>(318,312)<br>-<br>-<br>-<br>-|At<br>31.7.20<br>£<br>880,228<br>14,110,349|
|---|---|---|---|---|
|||||14,990,577<br>9,636<br>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**<br>General fund<br>Designated fund<br>**Endowment funds**<br>Endowment fund<br>**TOTAL FUNDS**<br>**Comparatives for movement in funds**<br>**Unrestricted funds**<br>General fund<br>Designated fund<br>**Restricted funds**<br>Restricted<br>**Endowment funds**<br>Endowment fund<br>**TOTAL FUNDS**|Incoming<br>resources<br>£<br>560,595<br>-<br>560,595<br>136,417<br>697,012<br>At 1.8.18<br>£<br>795,701<br>14,392,957<br>15,188,658<br>9,636<br>8,121,607<br>23,319,901||Resources<br>expended<br>£<br>(596,563)<br>(29,724)<br>(626,287)<br>(32,740)<br>(659,027)<br>Net<br>movement<br>in funds<br>£<br>(99,766)<br>157,701<br>57,935<br>-<br>284,042<br>341,977||Gains and<br>losses<br>£<br>-<br>(197,738)<br>(197,738)<br>(217,800)<br>(415,538)<br>Transfers<br>between<br>funds<br>£<br>(98,051)<br>105,465<br>7,414<br>-<br>(7,414)<br>-|Movement<br>in funds<br>£<br>(35,968)<br>(227,462)<br>(263,430)<br>(114,123)<br>(377,553)<br>At<br>31.7.19<br>£<br>597,884<br>14,656,123<br>15,254,007<br>9,636<br>8,398,235<br>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**<br>General fund<br>Designated fund<br>**Endowment funds**<br>Endowment fund<br>**TOTAL FUNDS**|Incoming<br>resources<br>£<br>380,011<br>379,937<br>759,948<br>135,554<br>895,502|Resources<br>expended<br>£<br>(479,777)<br>(392,372)<br>(872,149)<br>(31,708)<br>(903,857)|Gains and<br>Movement<br>losses<br>in funds<br>£<br>£<br>-<br>(99,766)<br>170,136<br>157,701<br>170,136<br>57,935<br>180,196<br>284,042<br>350,332<br>341,977|Gains and<br>Movement<br>losses<br>in funds<br>£<br>£<br>-<br>(99,766)<br>170,136<br>157,701<br>170,136<br>57,935<br>180,196<br>284,042<br>350,332<br>341,977|
|---|---|---|---|---|
|||||57,935<br>284,042|
|||||341,977|



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

|**Unrestricted funds**<br>General fund<br>Designated fund<br>**Restricted funds**<br>Restricted<br>**Endowment funds**<br>Endowment fund<br>**TOTAL FUNDS**|At 1.8.18<br>£<br>795,701<br>14,392,957<br>15,188,658<br>9,636<br>8,121,607<br>23,319,901|Net<br>movement<br>in funds<br>£<br>(135,734)<br>(69,761)<br>(205,495)<br>-<br>169,919<br>(35,576)|Transfers<br>between<br>funds<br>£<br>220,261<br>(212,847)<br>7,414<br>-<br>(7,414)<br>-|At<br>31.7.20<br>£<br>880,228<br>14,110,349|
|---|---|---|---|---|
|||||14,990,577<br>9,636<br>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<br>Resources<br>resources<br>expended<br>£<br>£<br>**Unrestricted funds**<br>General fund<br>940,606<br>(1,076,340 )<br>Designated fund<br>379,937<br>(422,096)<br>1,320,543<br>(1,498,436 )<br>**Endowment funds**<br>Endowment fund<br>271,971<br>(64,448)<br>**TOTAL FUNDS**<br>1,592,514<br>(1,562,884 )|Gains and<br>Movement<br>losses<br>in funds<br>£<br>£<br>-<br>(135,734)<br>(27,602)<br>(69,761)<br>(27,602)<br>(205,495)<br>(37,604)<br>169,919<br>(65,206)<br>(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<br>Total Return|Total<br>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<br>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. 

Page 32 



The Farmington Trust Limited 

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

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



This page does not form part of the statutory financial statements 

Page 33 



The Farmington Trust Limited 

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

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



This page does not form part of the statutory financial statements 

Page 34