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2021-09-30-accounts

The Farmers’ Company Charitable Fund Charity number 258712

Accounts and Trustee’s Report for the year ended 30[th] September 2021

Wenn Townsend Abingdon Chartered Accountants

The Farmers’ Company Charitable Fund

Contents

Trustee’s Report 1 – 8 Report of the Independent Auditor 9 – 10 Statement of Financial Activities 11 Balance Sheet 12 Notes to the Accounts 13 – 22 Investment Summary Appendix 1 Funds Summary Appendix 2

The Farmers’ Company Charitable Fund

Trustee’s Report for the year ended 30[th] September 2021

The Worshipful Company of Farmers Trustee Company Limited presents its report and the audited financial statements of The Farmers’ Company Charitable Fund (“the Charity”) for the year ended 30[th] September 2021. The Trustee has adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the Charity.

Reference and Administrative Details

Trustee

Until the last financial year, The Worshipful Company of Farmers (“the Company”) as a body corporate was the Trustee. Responsibility for administration of the Charity was undertaken by the Master, Wardens and Members of Court of the Company for the time being (“the Court”). From 1[st] October 2020 the Governance changed to The Worshipful Company of Farmers Trustee Company Limited and their Directors are listed accordingly.

Directors of The Worshipful Company of Farmers Trustee Company Limited

J A Sayers – Chairman G L Brogden (resigned…….) Baroness H Byford DBE DL R J L Jones T J Russ B J Littler (appointed…….)

Charity No. 258712

Secretary and Principal Ofce

G E Bamford

The Farmers’ Company Charitable Fund, Farmers Fletchers Hall, 3 Cloth Street, London, EC1A

Administrator and address for all correspondence

G E Bamford, Clerk, 24 Herons Place, Old Isleworth, Middlesex, TW7 7BE

Auditors

Wenn Townsend, Victoria House, 10 Broad Street, Abingdon, Oxon, OX14 3LH

Bankers

National Westminster Bank plc, 1 Princes Street, London, EC2R 8PA

Solicitors

Stone King, Boundary House, 91 Charterhouse Street, London, EC1M 6HR

Investment Custodians

The portfolio is in the custody of Cazenove Capital Management, a trading name of Schroder & Co Limited, 31 Gresham Street, London, EC2V 7QA.

The Farmers’ Company Charitable Fund

Trustee’s Report for the year ended 30[th] September 2021

Structure, Governance and Management

The Charity is a registered charity, No. 258712 and is constituted under a Declaration of Trust dated 10[th] March 1969. It was created by the Court of the Company in the furtherance of the charitable activities which are detailed later in this report. As discussed below, the Trustee changed with effect from 1 October 2020.

The Charity has benefited over the years from a number of generous individual benefactors and restricted funds set up by them are listed in the accounts. In addition, it benefited from the gift of freehold land in the City of London by Past Master W L Cardy in 1970 and the Charity continues to own the freehold of the land and adjoining properties through subscription which, subject to a 500 year lease held by various parties, is where the Farmers Fletchers Livery Hall is situated.

In 2019, The Court took advice on the governance of the Charity, initially from the Honorary Solicitor and subsequently from its legal advisers, Stone King LLP. It established the Charity Advisory Group (“CAG”). The CAG, with support from Stone King, produced a proposal for the restructuring of the Charity.

Having obtained said legal advice in relation to good governance, and in order to comply with Charity Commission guidance on connections between charities and non-charities, the Court reviewed and approved the restructuring proposal put forward by the CAG. The restructuring entailed a change in the trusteeship of the Charity from The Worshipful Company of Farmers (the “Company”), to a newly incorporated, bespoke company (the “Trustee Company”).

The Worshipful Company of Farmers Trustee Company Ltd was formed in 2020 to operate as follows:

that it is able to deal with the Charity’s assets as necessary. The Charity Commission subsequently gave their approval.

2

The Farmers’ Company Charitable Fund

Trustee’s Report for the year ended 30[th] September 2021

As a result of this change, the Charity now has a modern, robust legal structure which reflects the requirements of charity law and the expectations of the Charity Commission. The change in structure also enables better management of conflicts of interest which may arise between the Company and the Charity.

Under this structure, the Charity’s relevant committees, for example the Education Committee, Henman and the Almoner’s Committees, submit their proposals to the Company’s Finance Committee as was previously the practice. The Finance Committee considers, amends if required and then approves these proposals and report to the Court. Once approved by Court, the Finance Committee applies to the Charity for funding. The Trustee Company board makes the final decision to approve, adjust or reject an application, but will be informed in its decision by the continuous dialogue with the Court, which will inform the strategy of the Charity. Third parties may also submit funding applications directly to the Charity, which may or may not be linked to or have the support of the Company Committees such as the Almoner’s Committee

Financial Review

At 30[th] September 2021 the Charity’s net assets stood at £4,798,090 (which included Heritage assets valued at £265,950). Details of the income and expenditure for the year are shown on page 11 of the accounts. The net movement in funds was a surplus of £313,682 which includes a pleasing unrealised gain on investments of £249,052 leaving an operating surplus of £64,630 – greater than budget due largely due to lack of courses and dividend income being stronger than planned when the budget was set in May 2020.

The Charity is in sound financial shape, and we are pleased to report that for 2021/22 the courses are back on schedule, the Hall is under new operational management and the Livery (as opposed to the Charity) have taken on much of the risk of running the hall going forward.

Following the Charity’s declaration for a members’ voluntary liquidation of Farmers and Fletchers Hall Limited (FFHL) in 2020 the charity had to bear the costs of running the empty hall for the year until the various options for the hall were considered and new arrangements were made with effect from 1 September 2021. The Charity’s’ share of such costs were £34,633 (better than budgeted at £50,000.).

The Trustee, through the property and hall management committees and in association with its coowners The Fletchers Company, reviewed several options including changing the use of the hall but the cost and risk of so doing was thought to be disproportionate to the alternative. The Farmers Company together with the Fletchers Company have agreed to take on the risk of running the hall jointly and in so doing went through a formal tender process advised by third party professionals led by Guy Brogden and appointed Graysons to run the hall on their behalf. Whilst formal rent agreement has yet to be documented at the time of preparing these accounts it has been informally agreed that for the year ended 30 September 2022 the Livery will take all the risk of reopening – which are not inconsiderable the way Covid is still with us - and then look to pay a rent in line with the market for that use thereafter ie from 1 October 2022. If the Hall is well used by this point then the Livery will pay the rent from a share in operating surpluses- failing that it will meet it from its own resources which might have to include reviewing the amount it gives by way of donation to the Charity and instead pay rent.

Risk Management

The Charity has developed systems to monitor and control the risks it faces so to mitigate the impact they may have on its future. This includes reviewing the level of insurance cover provided by the Charity’s insurers and wider risks considered by the various committees that run the day to day

affairs of the charity including the Finance Committee who have a formal role to continually assess risks to the Charity.

The Charity continues to mitigate risk to its investments by holding the majority of its investments in managed funds to secure income and capital growth. By minimising risk, the Charity can fulfil its crucial charitable activities of supporting agricultural education, farmers in distress and assisting related charitable bodies.

3

The Farmers’ Company Charitable Fund

Trustee’s Report for the year ended 30[th] September 2021

Objectives and Activities

The objectives for which the Charity was founded are:

Educational Awards (Objective A)

The Advanced Course in Agricultural Business Management is a three-week intensive residential course. The course is intended for managers of businesses in the agricultural and allied industries and through seminars, group discussions, case studies and lectures and aims to deliver improvements to the management of UK agricultural businesses.

The Challenge of Rural Leadership is a two-week intensive course intended for agriculture and agri-business managers with at least five years’ experience and the potential to become industry leaders of the future. Through lectures, visits, discussions, case studies and presentations from a wide range of visiting lecturers it aims to develop the delegate’s leadership, inter-personal, communication and media skills.

The Cranfeld Business Growth Programme through its support of this course the Company provides an opportunity for agricultural delegates to be exposed to a much wider spectrum of industry managerial talent and thinking encouraging the adoption of new management practices to the industry.

Cranfeld MBA – when candidates with appropriate qualifications and aptitude are found, the Company sponsors delegates for either the 1 year or 2 year MBA course at Cranfield.

Scholarships for all these courses are available from the Charity.

4

The Farmers’ Company Charitable Fund

Trustee’s Report for the year ended 30[th] September 2021

4) Apprentice and Overseas Travel Awards

Through generous donations, the Henman Awards have been granted since 1972 to assist young men and women to gain practical experience for their agricultural or horticultural careers and to provide grants to support younger students obtain qualification in agriculture related fields. The Awards also provide financial assistance to fund overseas travel through support of Nuffield.

The Attfield Brooks Apprentice Fund was set up in 1989 to assist Company Apprentices to “learn the art and science of agriculture”, to pursue a formal education in agriculture and to widen their experiences by overseas travel. During the year there were four Apprentices.

– Objective D considered by the Almoners Committee

Charitable donations are made each year by this committee.

Public Beneft

Reference has been made to the guidance contained in the Charity Commissions general guidance on public benefit when reviewing our aim and objectives and in planning our future activities.

The Charity seeks to:

Thus, the educational objectives are directed not just at agricultural students in education and training at all levels but at the general public and general population. Through its support of the Surrey Docks Farm the Company supports community education for local people and children reflecting the London City Livery context of the Charity and its interest in the City of London and surrounding Boroughs.

The Charity has in place measures to assess the benefit of its activities including student feedback and reports on all courses, grants and travel programmes. We continually review the success of each activity and the benefits brought to those groups of people we have set up to help and modify delivery to ensure our educational activities remain relevant and appropriate to the prevailing conditions in agriculture.

Grant making Policy

Grant making guidelines are set out in the Ordinances of the Company. It is the responsibility of the committees and individuals making grants to assess the needs of the applicants for the assistance within these guidelines and, if necessary, seek guidance at the meetings of Court and then their recommendations passed to the Trustees.

Activities

The major regular activities of the Charity can be summarised as follows:

This course is funded through the Parsons Fund and by specific donations.

The 24[th] Course took place in January 2020. Due to the Covid19 pandemic, no course was held in 2021 however, The Charity gave financial support totalling £6,000 to partially fund the retention of course administrators. Candidates were deferred to the planned January 2022 course.

This course is funded through the Lonsdale Fund.

5

The Farmers’ Company Charitable Fund

Trustee’s Report for the year ended 30[th] September 2021

3) Cranfeld Programmes

Cranfield fees amounting to £10,000 were paid during 2020-21.

4)

Lectures

The charity supported the City Food Lecture, held virtually, which is funded through the General Fund, and the Company’s own Agricultural Lecture.

5) Henman Travel Awards

A Nuffield Scholarship was awarded for 2020-21 with Charity support of £13,000, in association with Savills (UK) Ltd. This award is now funded through the Nuffield Award from the Henman Fund.

The Education Committee allocate an annual donation to Surrey Docks Farm and a number of prizes for students at Agricultural Colleges. An award of £5,000 was granted to Surrey Docks Farm in response to Covid.

Awards of £1,440 were made during 2020-21 to Young Farmers Club members for training and attendance at the Oxford Farming Conference.

6) Agricultural Research

A donation of £8,660 was made towards research, which is included within Grants to institutions within note 5 to the accounts.

Generally, donations are funded through the General Fund, College prizes are funded through the Parsons Fund.

Monitoring Achievement

Among the techniques used to monitor achievement are visits by the Master and senior members of the Court and Committees; reporting by course providers in writing and at annual presentations; reports, assessments and feedback from delegates and participants during and after their activities; appraisal of lecturers and formal performance indicators and informal measurements of satisfaction and continuous assessment.

Members of the Livery are encouraged to donate annually to the charity (£41,420 was given in this manner during the year).

The Property Fund represents the Charity’s ownership of the freehold interest and share of leasehold interests in 3 Cloth Street, London, EC1. The site was developed in the late 1980’s and the Fund receives a share of the rent payable by City Apartments.

Reserves Policy

The Charity has over the years accumulated undistributed reserves amounting to £4,798,090 which are detailed on the balance sheet. It aims to maintain sufficient reserves to be able to continue its programme of education, notwithstanding fluctuations in course income and expenditure. The Trustee considers the current level of reserves as consistent with this aim. Indeed, it is committed to growing the charity’s reserves such that they provide greater resilience to the charity to enable its investments to generate sufficient income to finance the core educational and other charitable programmes funded whilst exploring and developing new courses and causes – such as support for the City Farms and other charitable agricultural based movements.

The Farmers’ Company Charitable Fund

Trustee’s Report for the year ended 30[th] September 2021

Investment Policy

Investment Objective: The investment objective is to maintain at least the real value of capital over the long term whilst generating an attractive, sustainable level of income to support ongoing charitable expenditure.

Risk Tolerance: The Trustee wishes to minimise risk subject to achieving the above return requirement through diversification of assets. Time Horizon: The assets have a long-term investment time horizon.

Liquidity: There is an ongoing requirement for income to support charitable expenditure. There is a potential liability for property refurbishment for which a reserve is held in cash. Other Considerations: As a charity, the portfolio is tax exempt and the Trustee is cognisant of suitability of investment regulations set out by the Charity Commission. The direct property holding means it is unlikely that property will be considered as part of the investment portfolio. Implementation: At the date of the accounts, the Trustee managed funds and held these in the name of the Charity.

Management: In May 2020 the Finance Committee supported the results of a review by the Investment Sub Committee of investment management. The conclusion was that the members of the Investment sub-committee were all well experienced in matters of investment from their employment in City Investment Houses and as such might continue in this role but with the advent of electronic, computer, custody systems a professional Custodian should be employed provided a reasonable fee could be negotiated. As a result, a custody agreement has been reconfirmed with Schroders & Co Limited.

Achievements and Performance

Our core Leadership and Management courses were cancelled due to the pandemic. During the 2020/21 financial year, the Business Growth at Cranfield University was held virtually and two candidates attended this course. There Charity has also been able to increase the number of Young Farmer awards and at the same time ensure that there are Liverymen who will support them and help develop their wider understanding of the industry.

Financial donations were given to a wide range of Charities that support agriculture – these included the Surrey Docks Farm, Farming and Countryside Education and Rural Support Initiatives.

Recognising that there are many within agriculture who are finding it difficult to cope with the day to day challenges of their business, the Health and Wellbeing Initiative continued. Greater awareness will be made of the need to educate all College and University graduates to cope better with both change and pressure and emphasise the importance of looking after their health.

Whilst many colleges and universities were working remotely, the Charity still awarded 13 college prizes in recognition of high achievement.

The Charity has encouraged an alumni organisation of former course members which is now financially independent but supported by the Charity's infrastructure

The Charity continued to raise its profile through extensive coverage in the media publicising its research and enhancing the reputation of the courses it runs.

7

The Farmers’ Company Charitable Fund

Trustee’s Report for the year ended 30[th] September 2021

Plans for future periods

The 70[th] ACABM course held at the Royal Agricultural University in November 2021 was fully subscribed and the 25[th] Challenge of Rural Leadership course is fully subscribed for January 2022

The programme of Awards to both individuals and educational establishments will continue.

The strength and fellowship of the Livery continues to flourish with participation in all aspects of our work which provides financial support to our educational programmes.

Responsibilities of the Trustee

The Trustee is responsible for preparing the Trustee’s Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustee to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the Charity for that period. In preparing these financial statements, the Trustee is required to:

Charity will continue in operation.

The Trustee is responsible for keeping accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable it to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditors

Wenn Townsend were the Charity’s auditors during the year and have expressed their willingness to continue in that capacity.

Approved on behalf of the Trustee on ……………… 2022

……………………………………………........ J A Sayers

Chairman of The Worshipful Company of Farmers Trustee Company Ltd

8 The Farmers’ Company Charitable Fund

Report of the Independent Auditor

Independent Auditor’s Report to the Trustee of the Farmers’ Company Charitable Fund

Opinion

We have audited the financial statements of The Farmers’ Company Charitable Fund (the ‘charity’) for the year ended 30[th] September 2021 which comprise Statement of Financial Activities, the Balance Sheet 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, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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:

Other information

The trustee is responsible for the other information. The other information comprises the information included in the trustee’s annual report, other than the financial statements and our auditor’s report 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.

9 The Farmers’ Company Charitable Fund

Report of the Independent Auditor

Matters on which we are required to report by exception

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

Responsibilities of trustee

As explained more fully in the trustee’s responsibilities statement set out on page 8, the trustee is responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustee 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 trustee is responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustee either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Wenn Townsend Statutory Auditor 10 Broad Street Abingdon Oxon OX14 3LH 2022

………...…………

10

The Farmers’ Company Charitable Fund

Statement of Financial Activities for the year ended 30[th] September 2021

Not
e
Unrestrict
ed
Funds
£
Restricted
Funds
£
Endowme
nt
Funds
£
Total
2021
£
Total
2020
£		 Not
e
Unrestrict
ed
Funds
£
Restricted
Funds
£
Endowme
nt
Funds
£
Total
2021
£
Total
2020
£
INCOMING
RESOURCES
Income & endowments from:
Donations & legacies
2		 99,427
19,591
-
119,018
127,903
Investments
3		 66,345
29,295
-
95,640
96,120
Other
4		 7,787
-
-
7,787
2,300
Total Income 173,559
48,886
-
222,445
226,323
RESOURCES
EXPENDED
Expenditure on:
Charitable activities
5		 71,488
36,281
-
107,769
142,159
Other
6		 47,457
2,589
-
50,046
51,106
Total Expenditure 118,945
38,870
-
157,815
193,265
Net Income before
investments gains		 54,614
10,016
-
64,630
33,058
Net gains on
investments
9		 114,033
81,690
53,329
249,052
(140,24
0)
Net Income after
investment gains		 168,647
91,706
53,329
313,682
(107,182)
Transfers between
funds		 -
(1,143) 1,143
-
-
Revaluation of
Property		 -
-
-
-
(70,000)
NET MOVEMENT IN
FUNDS		 168,647
90,563
54,472
313,682
(177,182)
Total funds brought
forward		 3,613,850
555,740
314,818
4,484,408
4,661,590
Total funds carried
forward		 3,782,497
646,303
369,290
4,798,090
4,484,408

The Farmers’ Company Charitable Fund

Balance Sheet as at 30[th] September 2021

Not
e
FIXED ASSETS
Tangible Assets
10
Heritage Assets
11
Investments
12
CURRENT ASSETS
Debtors
13
Cash at bank & in hand
CREDITORS
Amounts due within
one year
14
NET CURRENT
ASSETS
TOTAL ASSETS LESS
CURRENT LIABILITIES
NET ASSETS
FUNDS
Unrestricted
16
Restricted
17
Endowment
18		 Unrestrict
ed
Funds
£
Restricte
d
Funds
£
Endowme
nt
Funds
£
Total
2021
£
Total
2020
£
2,345,000
-
-
2,345,00
0
2,345,000
265,950
-
-
265,95
0
265,950
1,101,219
587,626
361,008
2,049,85
3
1,750,842
3,712,169
587,626
361,008
4,660,80
3
4,361,792
22,769
5,205
-
27,97
4
21,501
68,702
54,433
8,282
131,41
7
139,168
91,471
59,638
8,282
159,39
1
160,669
21,143
961
-
22,10
4
38,053
70,328
58,677
8,282
137,28
7
122,616
3,782,497
646,303
369,290
4,798,09
0
4,484,408
3,782,497
646,303
369,290
4,798,09
0
4,484,408
3,782,497
-
-
3,782,49
7
3,613,850
-
646,303
-
646,30
3
555,740
-
-
369,290
369,29
0
314,818
3,782,497
646,303
369,290
4,798,09
0
4,484,408

Approved on behalf of the Trustee on ………………………… 2022 and signed on its behalf by:

J A Sayers Chairman of The Worshipful Company of Farmers Trustee Company Ltd

12 The Farmers’ Company Charitable Fund

Notes to the accounts for the year ended 30[th] September 2021

1. ACCOUNTING POLICIES

Basis of Accounting

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note to these financial statements, and in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) published in October 2019, the Financial Reporting standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and with the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102.

The Farmers’ Company Charitable Fund has not prepared consolidated accounts as there is no requirement to do so under the Charities Act 2011.

Fixed Assets

Significant fixed assets are capitalised and depreciated over their estimated useful lives; small items are charged to the Statement of Financial Activities as incurred.

No depreciation is provided on the investment property as this represents the Charity’s ownership of the freehold land and share of leasehold property situated at 3 Cloth Street, London. The property was revalued by the Trustees with the guidance of a professional at the end of the September 2021 accounting year.

Heritage Assets

Heritage assets are stated at their insurance valuation.

No depreciation is charged on these assets as, in the opinion of the trustee, the assets have an indefinite useful life and a high residual value resulting in any depreciation charge being immaterial.

Listed Investments

Listed investments are valued initially at cost and subsequently at fair value (market value) at the year end. Any unrealised profits or losses at the year-end are brought into the Funds shown in the Statement of Financial Activities.

Unlisted Investments

Unlisted investments are stated at the cost of the share capital held at the year-end.

Stock

Stock is valued at the lower of cost and net realisable value.

Fund Accounting

Funds held by the charity consist of:

Unrestricted General Funds, which can be used in accordance with the charitable objects at the discretion of the trustee.

Restricted Funds, which 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. Further explanations of the nature and purpose of each fund is included in the notes to the financial statements.

13

The Farmers’ Company Charitable Fund Notes to the accounts for the year ended 30[th] September 2021

ACCOUNTING POLICIES (Continued)

Donations and Legacies

Donations and gifts are recognised on receipt by the charity. Legacies are recognised when there is reasonable assurance of their receipt, and the amount is known. Amounts received for activities restricted by the wishes of the donor are held in restricted funds.

Grants

Grants receivable and payable are included when these are received or paid.

Expenditure

Certain expenditure is apportioned between cost categories based on the estimated amount attributable to that activity in the year on a time basis.

2. INCOME FROM DONATIONS AND LEGACIES

Unrestricted Unrestricted Restricted Endowment Endowment Total
Total
Funds Funds Funds
2021		 2020
£ £ £ £ £
Donation from members of the Company 41,420 - - 41,420
40,590
Legacies
 - - - - -
Other donations 58,007 19,591 - 77,598 87,313
99,427
19,591		 -
 119,018 127,903

Income from donations and legacies was £119,018 (2020 - £127,903) of which £99,427 (2020 - £95,824) was attributable to unrestricted funds, £19,591 (2020 - £32,079) was attributable to restricted funds and £Nil (2020 - £Nil) was attributable to endowment funds.

3. INCOME FROM INVESTMENTS

Dividends

Investment Interest
Rental		 Unrestricted Restricted Endowment
Total Total
Funds Funds Funds 2021 2020
£ £ £ £ £
29,304
29,295
- 58,599 59,818
5 -
-
5
294
37,036
-
-
37,036
36,008

66,345
29,295
-
95,640
96,120

Income from investments was £95,640 (2020 - £96,120) of which £66,345 (2020 - £64,693) was attributable to unrestricted funds, £29,295 (2020 - £31,427) was attributable to restricted funds and £Nil (2020 - £Nil) was attributable to endowment funds.

4. OTHER INCOME

Other income was £7,787 (2020 - £2,300) which was attributable to unrestricted funds.

The Farmers’ Company Charitable Fund

Notes to the accounts for the year ended 30[th] September 2021

5 . EXPENDITURE ON CHARITABLE ACTIVITIES

Unrestricted Restricted Endowment Unrestricted Restricted Endowment Unrestricted Restricted Endowment Unrestricted Restricted Endowment Total Total
Funds Funds Funds 2021 2020
Grants Payable £ £ £ £ £
Advanced Course in Agricultural Business
- -		 - - 7,500
Challenge of Rural Leadership Course - 6,000 - 6,000 24,330
Cranfeld fees 4,000 - - 4,000 4,000
Grants to Institutions 26,447 6,644
 - 33,091 40,893
Grants to individuals - 16,190 - 16,190 18,740
30,44728,834 - 59,28195,463
Wages and salaries 29,272 7,012 - 36,284 35,690
Employer’s National Insurance 1,069 256 - 1,325 1,935
Employer’s Pension 743 179 - 922 920
Consultancy fees 9,957
-		 -
 9,957 8,151
71,488 36,281 - 107,769 142,159

Expenditure on charitable activities were £107,769 (2020 - £142,159) of which £71,488 (2020 - £70,542) of the above were attributable to unrestricted funds, £36,281 (2020 - £71,617) of the above costs were attributable to restricted and £Nil (2020 - £Nil) of the above costs were attributable to endowment funds.

6. OTHER COSTS (Including Auditor’ Remuneration)

6.
OTHER COSTS
(Including Auditor’ Remuneration)
Total Total
2021 2020
£ £
Audit fees 3,150 3,000
Services provided by auditors in respect of non-audit work 5,570 3,968
Professional fees
70		 30,382
8,790 37,350
Other expenses 41,256 13,756
50,046 51,106
Professional fees of £70 (2020: £30,382) include £Nil (2020: £23,415) expended in reviewing the
governance of the charity including changing trustee and updating the Trust Deed.

Other costs expenditure was £50,046 (2020 - £51,106) of which £47,457 (2020 - £48,806) of the above costs were attributable to unrestricted funds, £2,589 (2020 - £2,300) of the above costs were attributable to restricted funds and £Nil (2020 - £Nil) of the above costs were attributable to endowment funds.

7. EMPLOYEES AND TRUSTEE

The charity had one employee during the year (2020 – 1), whose salary is shown in note 6.

No employee received remuneration in excess of £60,000.

No Trustee (or any person connected with them) received any remuneration from the Charity or had any expenses reimbursed.

8. DEFINED CONTRIBUTION PENSION SCHEME

The charity operates a defined contribution pension scheme for its employee. Employer’s contributions of £922 (2020: £920) were payable to this scheme for the year. At the year-end £Nil (2020 - £Nil) was accrued in respect of contributions to this scheme.

15

The Farmers’ Company Charitable Fund

Notes to the accounts for the year ended 30[th] September 2021

9. NET GAINS ON INVESTMENTS

Net gains on investments of £249,052 (2020 - (£140,240)) of which £114,033 (2020 - (£63,467)) was attributable to unrestricted funds, £81,690 (2020 - (£42,912)) was attributable to restricted funds and £53,329 (2020 - (£33,861)) was attributable to endowment funds.

10. TANGIBLE FIXED ASSETS

10. TANGIBLE FIXED ASSETS
Investment
Property
£
Cost
At 1stOctober 2020 2,345,000
Additions -
Revaluation -
__
At 30thSeptember 2021 2,345,000
Net book value
At 30thSeptember 2021 2,345,000
At 30thSeptember 2020 2,345,000

Investment property represents the freehold interest and share of leasehold interest in the land and buildings at 3 Cloth Street, London.

The Trustee was advised by the charity’s honorary surveyor that the value of the charity’s property interest had fallen by £Nil at 30[th] September 2021.

Tangible fixed assets with a net book value of £2,345,000 (2020 - £2,345,000) are assets which have unrestricted title.

11. HERITAGE ASSETS

Heritage Assets
£
Carrying value at 1stOctober 2020 265,950
Addition -
Carrying value at 30thSeptember 2021 265
,950

The charity holds a collection of antiques and ceremonial items. The collection includes chains and badges of office, silver plate and antiques connected with agriculture.

The collection has been acquired since the establishment of the Worshipful Company of Farmers, the 80[th] Livery Company of the City of London, and is therefore of historical significance. Much of the collection is also in regular use during meetings of the company.

The assets have been included in the financial statements at their insured value. This follows a formal revaluation by Edward Fraser Limited of the Silver and Regalia, and revision of the certified value for insurance purposes.

In October 2019 the Senior Past Master donated a pewter bull (the “Redman Bull”) which has been included at its insurance value.

Heritage assets with a net book value of £265,950 (2020 - £265,950) are assets which have unrestricted title.

16

The Farmers’ Company Charitable Fund

Notes to the accounts for the year ended 30[th] September 2021

12. INVESTMENTS

Listed
(Appendix 1)
£
Unlisted
£
Total
2021
£
Carrying value at 1stOctober 2020 1,750,842
-
1,750,842
Disposals at carrying value -
-
-
Acquisitions at cost 49,959
-
49,959
Gain on revaluation 249,052
-
249,052
Carrying value at 30thSeptember
2021		 2,049,853
-
2,049,853
Historical cost at 30thSeptember
2021		 1,393,248
-
1,393,248

The listed investments are spread across various holdings in unit trusts and individual companies.

Investments of £2,049,853 (2020 - £1,750,842) of which £1,101,219 (2020 - £937,227) was allocated to unrestricted funds, £587,626 (2020 - £505,936) was allocated to restricted funds and £361,008 (2020 - £307,676) was allocated to endowment funds.

13. DEBTORS

Due from Worshipful Company of Farmers
Loans due from Cloth Street Landlords
Other debtors
14. CREDITORS
Amounts falling due within one year
Other creditors
Deposit held
Accruals		 2021
£
9,638
17,297
1,039
_
27,974
2021
£
1,124
6,009
14,971
____
22,104		 2020
£
8,762
11,812
927
_
21,501
2020
£
1,117
11,490
25,446
____
38,053

17

The Farmers Company Charitable Fund

Notes to the accounts for the year ended 30[th] September 2021

15. TRANSACTIONS WITH RELATED PARTIES

The Worshipful Company of Farmers

The Farmers’ Company Charitable Fund was effectively controlled by the Trustee (a corporate body) The Worshipful Company of Farmers. On 29 July 2020 The Worshipful Company of Farmers Trustee Company Limited (company number 12778973) was incorporated which has taken over as the sole Trustee of The Farmers Company Charitable Fund with effect from 1 October 2020.

The Worshipful Company of Farmers paid £826 (2020: £500) on behalf of the charity during the year. The Worshipful Company of Farmers also received £22,737 (2020: £23,402) on behalf of the Charity during the year under review.

At 30[th] September 2021 the Fund was owed £9,638 by The Worshipful Company of Farmers (2020: £8,762) in respect of payments made by the Charity on behalf of The Worshipful Company of Farmers.

Cloth Street Landlords

Cloth Street Landlords is the name given to the joint venture between the Charity and The Worshipful Company of Fletchers, which jointly owns and lets the property at 3 Cloth Street, London.

At the year-end Cloth Street Landlords owed the Charity £17,297 (2020: £11,812).

The Farmers’ Company Charitable Fund

Notes to the accounts for the year ended 30[th] September 2021

16. UNRESTRICTED FUNDS

16. UNRESTRICTED FUNDS
Opening
Balance
Incomin
g Funds
Outgoi
ng
Funds
Gains/
(Losses
)
Transfe
rs
Closing
balance
£
£
£
£
£
£
General Fund 1,118,850
173,559
118,945
114,033
(30,000)
1,257,49
7
Property Fund 2,345,000
-
-
-
-
2,345,00
0
Property Reserve
Fund		 150,000
-
-
-
30,000
180,000
3,613,850
173,559
118,945
114,033
-
3,782,49
7

The Jubilee Fund was a designated scholarship fund set up in 2002 to celebrate the 50[th] Anniversary of the Company and the Queen’s Golden Jubilee. It is a currently held within the general fund.

The Property Fund represents the Charity’s ownership of the freehold interest in the property at 3 Cloth Street, London.

The Property Reserve Fund was set up to ameliorate any expenses arising from the ownership of 3 Cloth Street, with a sum being transferred into it on an annual basis from rentals received.

17. RESTRICTED FUNDS

Opening **Incoming ** **Outgoing ** Gains/ Closing Closing
Balance Funds Funds
(Losses)		 Transfers
Balance
£ £ £ £
£ £
____________
Henman Fund 176,480 9,093 18,702 21,852 (909) 187,814
Lonsdale Fund 296,159 15,897 10,994 40,124 - 341,186
Parsons Fund 47,545 21,561 8,523 14,049 - 74,632
Brooks Apprentice
 Fund 35,556
 2,335 651 5,665 (234) 42,671
555,740 48,886 38,870 81
,690		 (1 ,143)
646		 ,303

The Farmers’ Company Charitable Fund

Notes to the accounts for the year ended 30[th] September 2021

18. ENDOWMENT FUNDS

Opening **Incoming ** **Outgoing ** Gains/ Closing
Balance Funds Funds
(Losses)		 Transfers
Balance
£ £ £ £
£ £
____________
Henman Fund 117,787 - - 22,834 909 141,530
Lonsdale Fund 133,553 - - 17,526 - 151,079
Parsons Fund 37,987 - - 8,171 - 46,158
Brooks Apprentice Fund 20,436 - - 4,798 234 25,468
Sufolk Endowment Fund 5,055 - - - - 5,055
_________
314,818 - - 53
,329		 1,143 369,290

The income generated by the above funds is allocated to each matching restricted fund.

19. DESCRIPTION OF RESTRICTED FUNDS

Henman Fund

The late Mr Philip Henman gave this fund to the Charity, to enable applicants to travel to gain practical experience to assist them with their agricultural or horticultural careers, the object being to assist those who would be precluded from travelling by lack of financial resources or access to the same. It was not intended to be used in the realms of general education.

The late Mr Henman, when he donated the fund, stated that he wished it to be invested in high income securities.

Mr Henman also stated that he would wish the Trustee to set aside 10% of the restricted income each year.

Lonsdale Fund

The late Lord Lonsdale, in donating this fund, in a Declaration dated 16[th] September 1985, stated that it was to be held on trust to use the income thereof for adult educational purposes in connection with agriculture or failing that for other charitable purposes of the Charity. The capital may only be distributed at the discretion of the Court of the Company of Farmers in the event of the winding up of the Charity.

Suffolk Endowment Fund

A donation of £5,000 was received from the Suffolk Agricultural Association in 1993 to be placed in an Endowment fund to be known as the ‘Suffolk Endowment Fund’. Accrued interest from the fund was designated to assist candidates from the county on the educational courses.

Research Fund

The Research Fund represents restricted income received for the purposes of agricultural research.

20 The Farmers’ Company Charitable Fund

Notes to the accounts for the year ended 30[th] September 2021

19. DESCRIPTION OF RESTRICTED AND ENDOWMENT FUNDS (Continued)

Parsons Fund

In a document dated 31[st] July 1987 Geoffrey and Isla Parsons agreed to provide £30,000 payable under two Deeds of Covenant. The document states that the income derived from the fund is to be used annually for the following purposes:

The document of 31[st] July 1987 also states that the capital of the Fund together with the income accruing on the loan is to be invested by the Trustee to provide a balance of capital growth and income.

Brooks Apprentice Fund

This fund was given to the Company’s Charitable Fund by Past Master C A Brooks, who wished it to be invested in high income investments, for 10% of the restricted income to be reinvested each year to compensate for inflation, and for the balance of the income to be used for the benefit of education of the bound apprentices of the Worshipful Company of Farmers.

The fund can accordingly be used to finance assistance for apprentices inter alia as follows:

The Court has subsequently agreed that the fund should also provide the Bible which is given to each apprentice when he is bound, and a copy of the History of the Company whilst they are available.

21

The Farmers’ Company Charitable Fund

Notes to the accounts for the year ended 30[th] September 2021

20. ANALYSIS OF NET ASSETS BETWEEN FUNDS


2021

£
Fixed assets
Cash and current investments
Other current assets
Creditors within one year
Total

2020

£
Fixed assets
Cash and current investments
Other current assets
Creditors within one year
Total		 Unrestricted
Restricted
Endowment
Total
Funds
Funds Funds
£ £ £
3,712,169
587,626
361,008
4,660,803
68,702
54,433
8,282
131,417
22,769
5,205
-
27,974
(21
,143)
(961
)
-
(22
,104)
3,782,497
646,303
369,290
4,798,090
Unrestricted
Restricted
Endowment
Total
Funds
Funds Funds
£ £ £
3,548,177
505,936
307,679
4,361,792
85,073
46,956
7,139
139,168
17,290
4,211
-
21,501
(36
,690)
(1
,363)
-
(38
,053
)
3,613,850
555,740
314,818
4,484,408