2024-06-30-accounts - The Farmers' Club Charitable Trust

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THE FARMERS CLUB CHARITABLE TRUST

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED

30TH JUNE 2024

Charity No. 282811

THE FARMERS CLUB CHARITABLE TRUST

REPORT AND FINANCIAL STATEMENTS

YEAR ENDED 30TH JUNE 2024

CONTENTS	Page
Reference and Administrative details	1
Trustees’ report	2 - 7
Auditors’ report	8 - 10
Statement of financial activities	11
Balance sheet	12
Notes to the financial statements	13 – 19

THE FARMERS CLUB CHARITABLE TRUST

REFERENCE AND ADMINISTRATIVE DETAILS

YEAR ENDED 30TH JUNE 2024

Patron	Mrs S K Muddiman	- year of appointment 1997
Trustees	Nick Green FRAgS, FIAgM (Chairman)	- year of appointment 2017
	V Croxson DL,FRAgS (Vice Chairman)	- year of appointment 2009
	Meryl Ward MBE, FRAgS, NSch	- year of appointment 2017
	Des Lambert OBE, FRAgS	- year of appointment 2017
	Jenna Louise Ross MBA OBE, ARAgS PMIAgrM	- year of appointment 2022
	James Squier FRICS	- year of appointment 2020
	Christine Tacon CBE, FRAgS, C.Env	-year of appointment 2021
Principal Office	The Farmers Club Charitable Trust
	3 Whitehall Court
	London
	SW1A 2EL
Auditors	HaysMac LLP
	Chartered Accountants
	Statutory Auditors
	10 Queen Street Place
	London
	EC4R 1AG
Bankers	CAFCASH Limited
	Kings Hill
	West Malling
	Kent
	ME19 4TA

THE FARMERS CLUB CHARITABLE TRUST

TRUSTEES’ REPORT

YEAR ENDED 30TH JUNE 2024

The Trustees present their annual report and financial statements for the year ended 30th June 2024. The information given on page 1 forms part of this report.

OBJECTIVES

The objective of the Trust is to ‘support learning and leadership within the food, farming and associated industries’. The Trustees confirmed that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Commission in determining the activities undertaken by the Charity.

The Trust was the brainchild of the late Trevor Muddiman funded by donations and covenants from Farmers Club members, generously matched by the late Sir John Eastwood. The current patron Mrs. Stella Muddiman also generously transferred assets from a private family trust. Over the years other club members have made generous gifts to the Trust funds.

The Trust made its first grants in 1981 and continues to expand and develop its activities in terms of offers made and the range of awards provided both independently and through collaboration with other organisations.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Farmers Club Charitable Trust is a registered charity, charity number 282811, and is governed by the Trust Deed dated 9th June 1981.

----- Start of picture text -----
Trust Deed dated
43 [rd] Year -Charity No. 282811
9 [th] June, 1981
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The Board of Trustees is charged with governing the Trust in accordance with its Trust Deed, to which responsibility for managing the day-to-day activities of the Trust it delegates to management, primarily the Ambassador and Trust Secretary. The management and governance structure of the Trust is as follows:

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M Mrs Meryl Mr
Ward MBE Nick
Educator AwardsAgricultural Green
The Farmers Club
Professor Quintin Mr Victor Croxson Mrs Meryl Ward Mr Desmond Charitable Trust
McKellar CBE (Chair) MBE Lambert OBE Chairperson
r
J
Snapshot
Studies
Mrs Christine
Tacon CBE Mrs Meryl Ward Mr James
MBE Squier
(Chair)
a
m
Leadership
(Windsor Leadership Trust)
Mrs Christine Tacon
CBE (Chair) Mr Nick Green Dr Jenna Ross OBE WLT Representatives
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THE FARMERS CLUB CHARITABLE TRUST

TRUSTEES’ REPORT

YEAR ENDED 30TH JUNE 2024

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Trustee appointment details

Following a review, concluded in March 2021, Trustees are initially appointed to serve for a period of up to five years. Trustees may be re-appointed for one further term of up to five years. The maximum number of years a Trustee may serve is normally limited to ten years. Normally, a maximum of eight Trustees are appointed, unless Trustees decide additional Trustees are required.

The Chair is elected annually for a period normally limited to five years. That term can be in addition to the time served as a Trustee but would not normally exceed ten years in total, unless a majority of Trustees vote in favour of an extension for a time-limited period.

The Board of Trustees regularly reviews the range of skills it required and following this review, there were no new appointments made during the year (2023: nil).

Trustee training details

New Trustees are made aware of the workings of the Charity and usually have extensive experience of being a Trustee for other charities.

ACTIVITIES

The Trust generates income through the following activities:

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Donations
Grants -
Collaboration
Bank Interest
with other
Trusts
INCOME
GENERATION
Investment
BPS Income
Income
Rents
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The income of the Trust is applied towards the study of agriculture and support activities considered to advance education and training in agriculture and the development of industry leaders by the provision of bursaries and grants to individuals who themselves must meet certain conditions and disseminate the knowledge gained. The provision of bursaries and grants centre around three key themes.

THE FARMERS CLUB CHARITABLE TRUST

TRUSTEES’ REPORT

YEAR ENDED 30TH JUNE 2024

ACTIVITIES (continued)

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Agricultural
Educator
Awards
Windsor
Leadership
Trust
Bursaries
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Themes
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Snapshot
Studies
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Agricultural Educator Awards:

Opens Autumn – Closes beginning of February

These awards give opportunities for those involved in the land-based education sector to develop their technical expertise through study activity either in the UK or abroad. The aim of the award is to enhance knowledge and skills that can then be disseminated to others.

Applicants apply for up to £10,000, but usually around £5,000, to support study trips associated with the charitable purpose.

Studies are conducted around the world and reports produced and published on the Trust’s website to further enhance dissemination of learning.

THE FARMERS CLUB CHARITABLE TRUST

TRUSTEES’ REPORT (continued)

YEAR ENDED 30TH JUNE 2024

ACTIVITIES (continued)

Snapshot Studies:

Opens during #AgriLeadershipWeek in May. Both the application and final project submission are completed though a video presentation. Snapshot Studies are open to anyone over the age of 18.

Applicants apply for between £1,000 and £2,000 to support an innovative idea or ‘seed’ project that would benefit from some ‘kick-start’ funding. The final project videos are published to create a resource bank of valuable information for the industry to use. Videos can be found on the Trust website and its YouTube Channel - YouTube Channel

Windsor Leadership Trust:

Applications are sought in the Spring and close for entries at the end of July. Bursaries to the value of approximately £4,000-£7,000 to attend the Windsor Leadership Programme are made to successful applications. The programmes focus on self-development and self-awareness to better equip leaders to respond to the challenges of strategic leadership. They are designed for leaders who have the potential to shape the future of their own organisations, as well as society as a whole. Alumni from this theme go on to become part of the ‘Professional Forum’ where continued development and peer-to-peer support are available.

ACHIEVEMENTS

During the year ended 30[th] June 2024 the Trust paid £400 in final awards to 1 individual (2023: £5,587 to 18 individuals) in respect of scholarship grants supporting agricultural snapshot studies that were approved in the previous financial year but only completed in the current financial year ended 30 June 2024, with the specific conditions of funding being met to unlock these additional final awards.

The Trust also awarded 14 bursaries and scholarship grants totaling £44,529 in 2024 (2023: eight bursaries totaling £36,792).

Over the period the last 6 years to date, a total amount of £171,059 has been paid in awards and bursaries in respect of applications received in the relevant application periods for each individual award and bursary.

Notes: 2022 - Due to Covid travel restrictions, no Agricultural Educator Awards were made. 2024 – No awards have yet been made for Snapshot Studies and Windsor Leadership Trust bursaries.

THE FARMERS CLUB CHARITABLE TRUST

TRUSTEES’ REPORT (continued)

YEAR ENDED 30TH JUNE 2024

PERFORMANCE

The Trustees continued to promote the science & technology of agriculture by awarding bursaries to teachers, lecturers and extension officers from Agricultural Colleges and Universities. Recipients of Agricultural Educator Awards publish reports to a wider audience in journals and on the Farmers’ Club Charitable Trust website. Successful candidates give talks on their subject and address seminars when invited to do so by the wider community. The Trustees initiative to develop leaders in agriculture has established a process and a mechanism for sustaining the benefits to individuals and the industry through an active group of alumni.

COLLABORATION

The Trust works in collaboration with other trusts and organisations in order to support the agricultural industry further. Such organisations include the following:

	Trusts		Organisations
□	The Frank Arden Trust	□	The Agri Food Charities Partnership
□	The Perry Foundation	□	LANDEX (Land Based Colleges and Universities
			Aspiring to Excellence)
□	Frank Parkinson Trust	□	TIAH (The Institute of Agriculture and
			Horticulture)
		□	AHDB (Agriculture and Horticulture
			Development Board)
		□	LANTRA
		□	MDS (Management Development Services)
		□	NFU (National Farmers Union)
		□	Nuffield
		□	Oxford Farming Conference
		□	Royal Agricultural Society
		□	The Worshipful Company of Farmers

FUTURE INTENTIONS

The financial markets position continues to affect the reserves of the Trust and the Trustees are mindful of this in their efforts to maintain a balance between offering bursaries and grants and preserving the Trusts’ financial strength. Within those constraints, the Trustees’ policy is to continue to offer open bursaries to those involved in public tertiary education thereby optimising the effective use of their limited funds by supporting those who educate future generations who will produce food and rural services to the wider population and to continue to offer grants to those identified as having the potential to become leaders in agriculture.

FINANCIAL REVIEW

The Trust generated income of £52,256 in the year (2023: £53,329) and utilised this funding to award grants and bursaries of £44,929 (as restated 2023: £28,641).

The net increase in funds of the Trust after gains and losses on investments was £38,557 (as restated 2023: decrease of £30,841). This increased the Trust’s funds to £2,274,771 (as restated 2023: decreased to £2,236,214).

RISKS

The Trustees have reviewed all significant risks facing the charity and have controls in place to mitigate these risks. The most significant risk relates to the performance of the Charity’s investments, which are invested with EFG Harris Allday, which the Trustees believe is appropriate but will keep it under review.

THE FARMERS CLUB CHARITABLE TRUST

TRUSTEES’ REPORT (continued)

YEAR ENDED 30TH JUNE 2024

RESERVES AND INVESTMENT POLICY

The Charity does not have any permanent endowment and its capital can be spent at any time at the discretion of the Trustees. It is, however, the Trustees’ policy to maintain the real value of the capital with a view to generating sufficient income, after meeting administrative expenses, to enable a number of bursary awards to be offered each year and to provide for such other grants as the Trustees may wish to make from time to time. To this end it is their investment policy to retain land with potential development value and to invest all other funds in well spread equities through the medium of a common investment fund or funds.

TRUSTEES’ STATEMENT OF RESPONSIBILITIES

The Trustees are responsible for preparing the Trustees’ 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 Trustees of the charity 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 those financial statements, the trustees are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles of the Charities SORP;
make judgements and estimates that are reasonable and prudent;
state whether applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that this basis applies.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charity (Accounts and Reports) Regulations and with the Trust Deed dated 9th June 1981. 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.

Approved by the Trustees and signed on their behalf by:

N Green Nicholas Green Chairman

Date: 17-12-2024

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF

THE FARMERS CLUB CHARITABLE TRUST

Opinion

We have audited the financial statements of The Farmers Club Charitable Trust for the year ended 30 June 2024, which comprise the Statement of Financial Activities, the Balance Sheet and the related notes. 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 Charity’s affairs as at 30th June 2024 and of the Charity’s net movement in funds for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Emphasis of matter

We draw attention to note 7 in the financial statements, which discloses the uncertainty in the valuation of the Charity’s investment property. Our opinion is not modified in respect of this matter.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Report. 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 in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

adequate accounting records have not been kept by the charity; or
sufficient accounting records have not been kept; or
the charity 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.

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF

THE FARMERS CLUB CHARITABLE TRUST

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out in the Trustees Report, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to 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

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the Charity and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to Charity Commission regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risk related to management bias in accounting estimates. Audit procedures performed by the engagement team included:

Inspecting correspondence with regulators;
Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
Evaluating management’s controls designed to prevent and detect irregularities;
Reviewing grants and bursaries paid prior and subsequent to the year-end to ensure that the expenditure had been recognised in the correct period;
Reviewing income received prior and subsequent to the year-end to ensure that the income had been recognised in the correct period; and
Challenging assumptions and judgements made by management in their critical accounting estimates, particularly in respect of their estimate of the fair value of agricultural land held as investment property.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF

THE FARMERS CLUB CHARITABLE TRUST

Use of our report

This report is made solely to the Charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity’s trustees as a body for our audit work, for this report, or for the opinions we have formed.

HaysMac LLP

HaysMac LLP 10 Queen Street Place Chartered Accountants London Statutory Auditors EC4R 1AG Date: 17/12/2024

HaysMac LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

THE FARMERS CLUB CHARITABLE TRUST

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 30TH JUNE 2024

		Unrestricted	Restricted		Restated
		funds	funds	Total	Total
		2024	2024	2024	2023
	Note	£	£	£	£
Income
Voluntary income	2	575	-	575	5,575
Investment income	2	40,873	-	40,873	36,938
Activities for generating funds	2	10,808	-	10,808	10,816
		----------------	----------------	----------------	----------------
Total income		52,256	-	52,256	53,329
		========	========	========	========
Expenditure
Charitable activities:
Awarding grants and bursaries		72,818	10,000	82,818	64,989
Governance costs		4,578	-	4,578	4,200
		----------------	----------------	----------------	----------------
Total expenditure	3	77,396	10,000	87,396	69,189
		========	========	========	========
		----------------	----------------	----------------	----------------
Net expenditure		(25,140)	(10,000)	(35,140)	(15,860)
Gains on investment assets
Realised gains on listed investments		9,845	-	9,845	19,980
Unrealised gains / (losses) on listed	7	28,852	-	28,852	(34,961)
investments
Gains on revaluation of investment	7	35,000	-	35,000	-
property
		--------------------	--------------------	--------------------	--------------------
Net movement in funds		48,557	(10,000)	38,557	(30,841)
Reconciliation of funds:
Fund balances brought forward at
1st July 2023 (as previously reported)		2,213,214	10,000	2,223,214	2,267,055
Prior year adjustment (see note 15)		13,000	-	13,000	-
		--------------------	--------------------	--------------------	--------------------
Fund balances brought forward at
1st July 2023 (as restated)		2,226,214	10,000	2,236,214	2,267,055
		--------------------	--------------------	--------------------	--------------------
Fund balances carried forward at 30th June 2024		2,274,771	-	2,274,771	2,236,214
		==========	==========	==========	==========

All transactions are derived from continuing activities.
All recognised gains and losses are included in the Statement of Financial Activities.

THE FARMERS CLUB CHARITABLE TRUST

BALANCE SHEET

AT 30TH JUNE 2024

					Restated
			2024		2023
	Note	£	£	£	£
INVESTMENTS	7		2,187,957		2,105,632
CURRENT ASSETS
Other debtors	8	12,824		26,441
Income tax recoverable			150		75
Cash at bank		99,085		131,715
		---------------		---------------
		112,059		158,231
		---------------		---------------
CURRENT LIABILITIES
Creditors	9	(25,245)		(27,649)
		--------------		--------------
NET CURRENT ASSETS			86,814		130,582
			--------------------		--------------------
NET ASSETS			2,274,771		2,236,214
			==========		==========
Unrestricted funds	10		2,274,771		2,226,214
Restricted funds	11		-		10,000
			--------------------		--------------------
TOTAL FUNDS			2,274,771		2,236,214
			==========		==========

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

N Green

……………………………………..

Nicholas Green Chairman

Date: 17-12-2024

THE FARMERS CLUB CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30TH JUNE 2024

1. ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared under the historical cost convention as modified to include the revaluation of investments. The format of the financial statements has been presented to comply with the Charities Act 2011, and The Statement of Recommended Practice for Charities (SORP 2015) (Second Edition, effective 1 January 2019).

The Charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

The Charity is not required to prepare a cash flow statement because of its size.

Going concern

The Trustees, having considered the Charity’s range of investments, liquidity and control of costs, are satisfied that there are no material uncertainties regarding the Charity’s ability to continue as a going concern.

Critical accounting judgements and estimates

In preparing these financial statements, the Trustees have made judgements, estimates and assumptions that affect the application of the Charity’s accounting policies and the reported assets, liabilities, income and expenditure and the disclosures made in the financial statements. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In preparing these financial statements the critical accounting judgement and estimate is as follows.

Valuation of agricultural land

The valuation of the agricultural land is estimated by the Trustees based on the most recent formal valuations obtained by external valuers and trustees’ expertise and knowledge of current market conditions. The primary source of evidence for the valuations is recent, comparable market transactions on an arms-length basis. An adjustment to any of these assumptions could lead to a material change in the valuation of the agricultural land. There is significant judgement as to the indicators of the valuation of the investment property as they are based upon valuer assumptions which may prove to be inaccurate.

THE FARMERS CLUB CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 30TH JUNE 2024

1. ACCOUNTING POLICIES (continued)

Fund accounting

Unrestricted funds comprise accumulated surpluses and deficits on general funds. They are available for use at the discretion of the Trustees in furtherance of the general charitable objectives.

Income

Incoming resources represents the total income receivable during the year comprising rents, donations, covenants and investment income.

Expenditure

Expenditure is allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall administration of the charity is apportioned based on the value of awards given in each activity.

Grants payable are charged in the year when the offer is conveyed to the recipient.

Governance costs comprise direct costs relating to the statutory and governance requirements of the Trust.

Investments

Listed investments are included at market value at the balance sheet date. Realised and unrealised gains and losses on investments are included in the Statement of Financial Activities.

Investments in agricultural land are included at fair value at the balance sheet date. Fair value gains and losses on investments in agricultural land are included in the Statement of Financial Activities.

Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments, including trade and other debtors and creditors are initially recognised at transaction value and subsequently measured at their settlement value.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.

THE FARMERS CLUB CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 30TH JUNE 2024

2.	INCOME			2024	2024	2023
				£		£
	Voluntary income:
	Donations (gross)				575	575
	Grants				-	5,000
				----------------------------		----------------------------
	Donations (gross)				575	5,575
				==========		==========
	Investment income			40,873		36,938
				==========		==========
	Activities for generating funds:
	Rents			8,886		8,850
	BPS Income			1,346		1,657
	Bank interest				576	309
				----------------------------		----------------------------
				10,808		10,816
				==========		==========
3.	EXPENDITURE	Direct		Grants &
		Costs	Direct	Bursaries	Support	Total
			Costs	payable	Costs	2024
			£	£	£	£
	Charitable Activities
	Awarding grants & bursaries	-	-	44,929	-	44,929
	Administration Costs	-	-	-	37,889	37,889
	Governance Costs	3,000	4,578	-	-	4,578
		--------------	--------------	----------------	---------------	----------------
		£3,000	4,578	44,929	37,889	87,396
		=======	=======	========	=======	========
				Restated		Restated
		Costs	Direct	Grants &	Support	Total
			Costs	bursaries	Costs	2023
				payable
		£	£	£	£	£
	Charitable Activities
	Awarding grants & bursaries	-	-	28,641	-	28,641
	Administration Costs	-	-	-	36,348	36,348
	Governance Costs	2,640	4,200	-	-	4,200
		--------------	--------------	----------------	---------------	----------------
		£2,640	4,200	28,641	36,348	69,189
		=======	=======	========	=======	========
	Administration costs comprise:				2024	2023
					£	£
	Agency & Professional fees				7,113	4,274
	Other				30,776	32,074
					--------------	--------------
					37,889	36,348
					=======	=======
	Governance costs comprise:
	Audit fees				4,578	4,200
					=======	=======

THE FARMERS CLUB CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 30TH JUNE 2024

4. CHARITABLE EXPENDITURE – GRANTS & BURSARIES AWARDED

						Restated	Restated
		Number	Restricted	Unrestricted	Total	Number	Total
		of	funds	funds	2024	of grants	2023
		grants	£	£	£		£
Leadership programmes		4	10,000	14,849	24,849	2	10,742
Agricultural educator awards		11	-	20,080	20,080	24	17,899
		----------------	--------------	----------------	---------------	----------------	---------------
Total grants awarded		111515	10,000	34,929	44,929	26	28,641
		=======	=======	========	=======	========	=========
						Restated	Restated
		Number	Restricted	Unrestricted	Total	Number	Total
		of	funds	funds	2024	of grants	2023
		grants	£	£	£		£
Analysed between:
Windsor Leadership Trust		4	10,000	14,849	24,849	2	10,742
Scotland’s Rural College		-	-	-	-	-	(4,900)
Sparsholt College		-	-	-	-	-	(7,238)
SMB College Group		-	-	-	-	1	5,000
Crop Health & Protection Ltd		-	-	-	-	1	6,800
Nuffield Farming	College	1	-	700	700	-	-
Trust
Oaklands College		1	-	1,000	1,000	-	-
Royal Agricultural University		1	-	7,000	7,000	-	-
Snapshot Study Awards		8	-	11,380	11,380	18	3,987
Other awards to individuals		-		-	-	4	14,250
		--------------	--------------	----------------	---------------	--------------	---------------
		15	10,000	34,929	44,929	26	28,641
		=======	=======	========	=======	========	=========

5. TRUSTEES’ REMUNERATION AND REIMBURSED EXPENSES

None of the trustees received any remuneration for their services (2023: £NIL) and three trustees (2023: three) received reimbursed travel and subsistence expenses totalling £1,529 (2023: £1,549).

6. STAFF

The Trust does not employ any staff and so there are no staff costs.

7. INVESTMENTS

	Agricultural	Listed	Total
	Land	investments
	£	£	£
Market Value at 1st July 2023	1,335,000	770,632	2,105,632
Additions	-	43,962	43,962
Disposals	-	(35,334)	(35,334)
Realised gain	-	9,845	9,845
Unrealised gain	35,000	28,852	63,852
	--------------------	------------------	--------------------
Market value at 30th June 2024	1,370,000	817,957	2,187,957
	==========	=========	==========
Historical cost at 30th June 2024	NIL	820,252	810,535
	==========	=========	==========

THE FARMERS CLUB CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 30TH JUNE 2024

7. INVESTMENTS (continued)

Listed investments comprise of:	2024	2023
	£	£
Investment trusts and funds	156,654	152,255
Equities	649,895	612,522
Cash	11,408	5,855
	--------------	--------------
Total market value at 30th June	817,957	770,632
	=======	=======

Formal third party valuations of the two areas of agricultural land held at 30[th] June 2024 were previously carried out on 15[th] August 2022 by Bidwells, with land valued at £845,000, and on 25[th] July 2022 by Symonds & Sampson, with land valued at £490,000. These valuations of both areas of agricultural land were then reassessed by Bidwells on 30[th] August 2023 with no adjustments to these valuations being identified. Subsequent to this reassessment by Bidwells, the Trustees have reviewed the condition and circumstances of both areas of agricultural land since 30[th] August 2023 and concluded that there has been a combined £35,000 increase in the valuation of these two parcels of land to £870,000 and £500,000 respectively by 30[th] June 2024.

The valuation by Bidwells was performed in accordance with the RICS Global Standards 2023 and the Symonds & Sampson valuation is based on the previous valuation they performed as at 30th June 2020, which was performed in accordance with the RICS Global Valuation Standards Red Books, adjusted for subsequent changes in agricultural property market values and other factors specific to the land held by the Trust.

The valuation of the agricultural land is inherently subjective, as it is based upon valuer assumptions and assessment of market conditions, which may prove to be inaccurate.

8.	DEBTORS	2024	2023
		£	£
	Prepayments and accrued income	12,824	26,441
		==========	==========
9.	CREDITORS		Restated
		2024	2023
		£	£
	Accruals and deferred income	25,245	27,649
		==========	==========

Accruals and deferred income includes deferred income of £1,851 (2023: £2,192), which relates to rental income received in relation to the 2024/25 financial year.

10. MOVEMENT IN UNRESTRICTED FUNDS

					Restated
	Restated				As at 30
	As at 1 July	Income	Expenditure	Gains/(losses)	June 2024
	2023	£	£	£	£
	£
General fund	2,226,214	52,256	(77,396)	73,697	2,274,771
	============	==========	==========	==========	==========

NOTES TO THE FINANCIAL STATEMENTS (continued)

THE FARMERS CLUB CHARITABLE TRUST

YEAR ENDED 30TH JUNE 2024

10. MOVEMENT IN UNRESTRICTED FUNDS

					Restated
	As at 1 July		Restated		As at 30
	2022	Income	Expenditure	Gains/(losses)	June 2023
	£	£	£	£	£
General fund	2,257,055	48,329	(64,189)	(14,981)	2,226,214
	============	==========	==========	==========	==========

11. MOVEMENT IN RESTRICTED FUNDS

	As at 1 July				As at 30
	2023	Income	Expenditure	Gains/(losses)	June 2024
	£	£	£	£	£
Windsor Leadership Trust	10,000	-	(10,000)	-	-
	============	==========	==========	==========	==========
	As at 1 July				As at 30
	2022	Income	Expenditure	Gains/(losses)	June 2023
	£	£	£	£	£
Windsor Leadership Trust	10,000	5,000	(5,000)	-	10,000
	============	==========	==========	==========	==========

Explanations for restricted funds:

Windsor Leadership Trust – used to fund bursaries for individuals enrolled with the Windsor Leadership Trust.

12. ANALYSIS OF NET FUNDS

	Unrestricted	Restricted	Total 30 June
	funds	funds	2024
	£	£	£
Fixed assets
Investments	2,187,957	-	2,187,957
Current assets	112,059	-	112,059
Creditors falling due within one year	(25,245)	-	(25,245)
	------------------------------------	-------------------------	------------------------------------
	2,274,771	-	2,274,771
	=============	=========	=============

13. RELATED PARTY TRANSACTIONS

There were no related party transactions during the year (2023: NIL).

THE FARMERS CLUB CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 30TH JUNE 2024

14. OPERATING LEASES – AS LESSOR

At 30 June 2024, the Trust had future minimum lease receivables due under non-cancellable operating leases for each of the following periods:

each of the following periods:
	2024	2023
	£	£
Not later than 1 year	5,781	5,427
Later than 1 year and not later than 5 years	23,031	21,708
Later than 5 years	-	5,427
	---------------------------	---------------------------
	28,812	32,562
	==========	==========

15. PRIOR YEAR ADJUSTMENT

Following a review of unpaid grants and bursaries it has been identified that during the year ended 30 June 2023 3 awards totalling £13,000 that had been approved in previous financial years from the Trust’s unrestricted funds, had been cancelled and so as at that date the Trust no longer had any obligation to pay them out. However in the prior year financial statements these awards continued to be incorrectly recognised as owing to the grantees.

Therefore the following prior year adjustment has been recognised to the 2023 comparatives to de-recognise these grants and bursaries, for which the Trust’s obligations had been discharged as at 30 June 2023, that had been awarded using the Trust’s unrestricted funds

Statement of Financial Activities

	As previously
	reported	Prior year	As restated
	30 June 2023	adjustment	30 June 2023
	£	£	£
Charitable activities: awarding grants & bursaries	(77,989)	13,000	(64,989)
	------------------------------------	-------------------------	------------------------------------
Total expenditure	(82,189)	13,000	(69,189)
	------------------------------------	-------------------------	------------------------------------
Net expenditure	(28,860)	13,000	(15,860)
	------------------------------------	-------------------------	------------------------------------
Net movements in funds	(43,841)	13,000	(30,841)
	=============	=========	=============
alance Sheet
	As previously
	reported	Prior year	As restated
	30 June 2023	adjustment	30 June 2023
	£	£	£
Cash at bank	130,225	1,600	131,825
	------------------------------------	-------------------------	------------------------------------
Current assets	156,631	1,600	158,231
Creditors	(39,049)	11,400	(24,778)
	------------------------------------	-------------------------	------------------------------------
Net current assets & net assets	2,223,214	13,000	2,236,214
	=============	=========	=============

Balance Sheet

THE FARMERS CLUB CHARITABLE TRUST

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED

30TH JUNE 2024

Charity No. 282811

THE FARMERS CLUB CHARITABLE TRUST

REPORT AND FINANCIAL STATEMENTS

YEAR ENDED 30TH JUNE 2024

CONTENTS	Page
Reference and Administrative details	1
Trustees’ report	2 - 7
Auditors’ report	8 - 10
Statement of financial activities	11
Balance sheet	12
Notes to the financial statements	13 – 19

THE FARMERS CLUB CHARITABLE TRUST

REFERENCE AND ADMINISTRATIVE DETAILS

YEAR ENDED 30TH JUNE 2024

Patron	Mrs S K Muddiman	- year of appointment 1997
Trustees	Nick Green FRAgS, FIAgM (Chairman)	- year of appointment 2017
	V Croxson DL,FRAgS (Vice Chairman)	- year of appointment 2009
	Meryl Ward MBE, FRAgS, NSch	- year of appointment 2017
	Des Lambert OBE, FRAgS	- year of appointment 2017
	Jenna Louise Ross MBA OBE, ARAgS PMIAgrM	- year of appointment 2022
	James Squier FRICS	- year of appointment 2020
	Christine Tacon CBE, FRAgS, C.Env	-year of appointment 2021
Principal Office	The Farmers Club Charitable Trust
	3 Whitehall Court
	London
	SW1A 2EL
Auditors	HaysMac LLP
	Chartered Accountants
	Statutory Auditors
	10 Queen Street Place
	London
	EC4R 1AG
Bankers	CAFCASH Limited
	Kings Hill
	West Malling
	Kent
	ME19 4TA

THE FARMERS CLUB CHARITABLE TRUST

TRUSTEES’ REPORT

YEAR ENDED 30TH JUNE 2024

The Trustees present their annual report and financial statements for the year ended 30th June 2024. The information given on page 1 forms part of this report.

OBJECTIVES

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Farmers Club Charitable Trust is a registered charity, charity number 282811, and is governed by the Trust Deed dated 9th June 1981.

----- Start of picture text -----
Trust Deed dated
43 [rd] Year -Charity No. 282811
9 [th] June, 1981
----- End of picture text -----

THE FARMERS CLUB CHARITABLE TRUST

TRUSTEES’ REPORT

YEAR ENDED 30TH JUNE 2024

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Trustee appointment details

The Board of Trustees regularly reviews the range of skills it required and following this review, there were no new appointments made during the year (2023: nil).

Trustee training details

New Trustees are made aware of the workings of the Charity and usually have extensive experience of being a Trustee for other charities.

ACTIVITIES

The Trust generates income through the following activities:

----- Start of picture text -----
Donations
Grants -
Collaboration
Bank Interest
with other
Trusts
INCOME
GENERATION
Investment
BPS Income
Income
Rents
----- End of picture text -----

THE FARMERS CLUB CHARITABLE TRUST

TRUSTEES’ REPORT

YEAR ENDED 30TH JUNE 2024

ACTIVITIES (continued)

----- Start of picture text -----
Agricultural
Educator
Awards
Windsor
Leadership
Trust
Bursaries
----- End of picture text -----

----- Start of picture text -----
Themes
----- End of picture text -----

----- Start of picture text -----
Snapshot
Studies
----- End of picture text -----

Agricultural Educator Awards:

Opens Autumn – Closes beginning of February

Applicants apply for up to £10,000, but usually around £5,000, to support study trips associated with the charitable purpose.

Studies are conducted around the world and reports produced and published on the Trust’s website to further enhance dissemination of learning.

THE FARMERS CLUB CHARITABLE TRUST

TRUSTEES’ REPORT (continued)

YEAR ENDED 30TH JUNE 2024

ACTIVITIES (continued)

Snapshot Studies:

Opens during #AgriLeadershipWeek in May. Both the application and final project submission are completed though a video presentation. Snapshot Studies are open to anyone over the age of 18.

Windsor Leadership Trust:

ACHIEVEMENTS

The Trust also awarded 14 bursaries and scholarship grants totaling £44,529 in 2024 (2023: eight bursaries totaling £36,792).

Notes: 2022 - Due to Covid travel restrictions, no Agricultural Educator Awards were made. 2024 – No awards have yet been made for Snapshot Studies and Windsor Leadership Trust bursaries.

THE FARMERS CLUB CHARITABLE TRUST

TRUSTEES’ REPORT (continued)

YEAR ENDED 30TH JUNE 2024

PERFORMANCE

COLLABORATION

The Trust works in collaboration with other trusts and organisations in order to support the agricultural industry further. Such organisations include the following:

	Trusts		Organisations
□	The Frank Arden Trust	□	The Agri Food Charities Partnership
□	The Perry Foundation	□	LANDEX (Land Based Colleges and Universities
			Aspiring to Excellence)
□	Frank Parkinson Trust	□	TIAH (The Institute of Agriculture and
			Horticulture)
		□	AHDB (Agriculture and Horticulture
			Development Board)
		□	LANTRA
		□	MDS (Management Development Services)
		□	NFU (National Farmers Union)
		□	Nuffield
		□	Oxford Farming Conference
		□	Royal Agricultural Society
		□	The Worshipful Company of Farmers

FUTURE INTENTIONS

FINANCIAL REVIEW

The Trust generated income of £52,256 in the year (2023: £53,329) and utilised this funding to award grants and bursaries of £44,929 (as restated 2023: £28,641).

RISKS

THE FARMERS CLUB CHARITABLE TRUST

TRUSTEES’ REPORT (continued)

YEAR ENDED 30TH JUNE 2024

RESERVES AND INVESTMENT POLICY

TRUSTEES’ STATEMENT OF RESPONSIBILITIES

select suitable accounting policies and then apply them consistently;
observe the methods and principles of the Charities SORP;
make judgements and estimates that are reasonable and prudent;
state whether applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that this basis applies.

Approved by the Trustees and signed on their behalf by:

N Green Nicholas Green Chairman

Date: 17-12-2024

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF

THE FARMERS CLUB CHARITABLE TRUST

Opinion

In our opinion, the financial statements:

give a true and fair view of the state of the Charity’s affairs as at 30th June 2024 and of the Charity’s net movement in funds for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Emphasis of matter

Other information

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:

adequate accounting records have not been kept by the charity; or
sufficient accounting records have not been kept; or
the charity 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.

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF

THE FARMERS CLUB CHARITABLE TRUST

Responsibilities of trustees for the financial statements

Auditor’s responsibilities for the audit of the financial statements

Inspecting correspondence with regulators;
Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
Evaluating management’s controls designed to prevent and detect irregularities;
Reviewing grants and bursaries paid prior and subsequent to the year-end to ensure that the expenditure had been recognised in the correct period;
Reviewing income received prior and subsequent to the year-end to ensure that the income had been recognised in the correct period; and
Challenging assumptions and judgements made by management in their critical accounting estimates, particularly in respect of their estimate of the fair value of agricultural land held as investment property.

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF

THE FARMERS CLUB CHARITABLE TRUST

Use of our report

HaysMac LLP

HaysMac LLP 10 Queen Street Place Chartered Accountants London Statutory Auditors EC4R 1AG Date: 17/12/2024

HaysMac LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

THE FARMERS CLUB CHARITABLE TRUST

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 30TH JUNE 2024

		Unrestricted	Restricted		Restated
		funds	funds	Total	Total
		2024	2024	2024	2023
	Note	£	£	£	£
Income
Voluntary income	2	575	-	575	5,575
Investment income	2	40,873	-	40,873	36,938
Activities for generating funds	2	10,808	-	10,808	10,816
		----------------	----------------	----------------	----------------
Total income		52,256	-	52,256	53,329
		========	========	========	========
Expenditure
Charitable activities:
Awarding grants and bursaries		72,818	10,000	82,818	64,989
Governance costs		4,578	-	4,578	4,200
		----------------	----------------	----------------	----------------
Total expenditure	3	77,396	10,000	87,396	69,189
		========	========	========	========
		----------------	----------------	----------------	----------------
Net expenditure		(25,140)	(10,000)	(35,140)	(15,860)
Gains on investment assets
Realised gains on listed investments		9,845	-	9,845	19,980
Unrealised gains / (losses) on listed	7	28,852	-	28,852	(34,961)
investments
Gains on revaluation of investment	7	35,000	-	35,000	-
property
		--------------------	--------------------	--------------------	--------------------
Net movement in funds		48,557	(10,000)	38,557	(30,841)
Reconciliation of funds:
Fund balances brought forward at
1st July 2023 (as previously reported)		2,213,214	10,000	2,223,214	2,267,055
Prior year adjustment (see note 15)		13,000	-	13,000	-
		--------------------	--------------------	--------------------	--------------------
Fund balances brought forward at
1st July 2023 (as restated)		2,226,214	10,000	2,236,214	2,267,055
		--------------------	--------------------	--------------------	--------------------
Fund balances carried forward at 30th June 2024		2,274,771	-	2,274,771	2,236,214
		==========	==========	==========	==========

All transactions are derived from continuing activities.
All recognised gains and losses are included in the Statement of Financial Activities.

THE FARMERS CLUB CHARITABLE TRUST

BALANCE SHEET

AT 30TH JUNE 2024

					Restated
			2024		2023
	Note	£	£	£	£
INVESTMENTS	7		2,187,957		2,105,632
CURRENT ASSETS
Other debtors	8	12,824		26,441
Income tax recoverable			150		75
Cash at bank		99,085		131,715
		---------------		---------------
		112,059		158,231
		---------------		---------------
CURRENT LIABILITIES
Creditors	9	(25,245)		(27,649)
		--------------		--------------
NET CURRENT ASSETS			86,814		130,582
			--------------------		--------------------
NET ASSETS			2,274,771		2,236,214
			==========		==========
Unrestricted funds	10		2,274,771		2,226,214
Restricted funds	11		-		10,000
			--------------------		--------------------
TOTAL FUNDS			2,274,771		2,236,214
			==========		==========

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

N Green

……………………………………..

Nicholas Green Chairman

Date: 17-12-2024

THE FARMERS CLUB CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30TH JUNE 2024

1. ACCOUNTING POLICIES

Basis of preparation

The Charity is not required to prepare a cash flow statement because of its size.

Going concern

Critical accounting judgements and estimates

Valuation of agricultural land

THE FARMERS CLUB CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 30TH JUNE 2024

1. ACCOUNTING POLICIES (continued)

Fund accounting

Unrestricted funds comprise accumulated surpluses and deficits on general funds. They are available for use at the discretion of the Trustees in furtherance of the general charitable objectives.

Income

Incoming resources represents the total income receivable during the year comprising rents, donations, covenants and investment income.

Expenditure

Grants payable are charged in the year when the offer is conveyed to the recipient.

Governance costs comprise direct costs relating to the statutory and governance requirements of the Trust.

Investments

Listed investments are included at market value at the balance sheet date. Realised and unrealised gains and losses on investments are included in the Statement of Financial Activities.

Cash at bank and in hand

Financial instruments

Creditors and provisions

THE FARMERS CLUB CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 30TH JUNE 2024

2.	INCOME			2024	2024	2023
				£		£
	Voluntary income:
	Donations (gross)				575	575
	Grants				-	5,000
				----------------------------		----------------------------
	Donations (gross)				575	5,575
				==========		==========
	Investment income			40,873		36,938
				==========		==========
	Activities for generating funds:
	Rents			8,886		8,850
	BPS Income			1,346		1,657
	Bank interest				576	309
				----------------------------		----------------------------
				10,808		10,816
				==========		==========
3.	EXPENDITURE	Direct		Grants &
		Costs	Direct	Bursaries	Support	Total
			Costs	payable	Costs	2024
			£	£	£	£
	Charitable Activities
	Awarding grants & bursaries	-	-	44,929	-	44,929
	Administration Costs	-	-	-	37,889	37,889
	Governance Costs	3,000	4,578	-	-	4,578
		--------------	--------------	----------------	---------------	----------------
		£3,000	4,578	44,929	37,889	87,396
		=======	=======	========	=======	========
				Restated		Restated
		Costs	Direct	Grants &	Support	Total
			Costs	bursaries	Costs	2023
				payable
		£	£	£	£	£
	Charitable Activities
	Awarding grants & bursaries	-	-	28,641	-	28,641
	Administration Costs	-	-	-	36,348	36,348
	Governance Costs	2,640	4,200	-	-	4,200
		--------------	--------------	----------------	---------------	----------------
		£2,640	4,200	28,641	36,348	69,189
		=======	=======	========	=======	========
	Administration costs comprise:				2024	2023
					£	£
	Agency & Professional fees				7,113	4,274
	Other				30,776	32,074
					--------------	--------------
					37,889	36,348
					=======	=======
	Governance costs comprise:
	Audit fees				4,578	4,200
					=======	=======

THE FARMERS CLUB CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 30TH JUNE 2024

4. CHARITABLE EXPENDITURE – GRANTS & BURSARIES AWARDED

						Restated	Restated
		Number	Restricted	Unrestricted	Total	Number	Total
		of	funds	funds	2024	of grants	2023
		grants	£	£	£		£
Leadership programmes		4	10,000	14,849	24,849	2	10,742
Agricultural educator awards		11	-	20,080	20,080	24	17,899
		----------------	--------------	----------------	---------------	----------------	---------------
Total grants awarded		111515	10,000	34,929	44,929	26	28,641
		=======	=======	========	=======	========	=========
						Restated	Restated
		Number	Restricted	Unrestricted	Total	Number	Total
		of	funds	funds	2024	of grants	2023
		grants	£	£	£		£
Analysed between:
Windsor Leadership Trust		4	10,000	14,849	24,849	2	10,742
Scotland’s Rural College		-	-	-	-	-	(4,900)
Sparsholt College		-	-	-	-	-	(7,238)
SMB College Group		-	-	-	-	1	5,000
Crop Health & Protection Ltd		-	-	-	-	1	6,800
Nuffield Farming	College	1	-	700	700	-	-
Trust
Oaklands College		1	-	1,000	1,000	-	-
Royal Agricultural University		1	-	7,000	7,000	-	-
Snapshot Study Awards		8	-	11,380	11,380	18	3,987
Other awards to individuals		-		-	-	4	14,250
		--------------	--------------	----------------	---------------	--------------	---------------
		15	10,000	34,929	44,929	26	28,641
		=======	=======	========	=======	========	=========

5. TRUSTEES’ REMUNERATION AND REIMBURSED EXPENSES

None of the trustees received any remuneration for their services (2023: £NIL) and three trustees (2023: three) received reimbursed travel and subsistence expenses totalling £1,529 (2023: £1,549).

6. STAFF

The Trust does not employ any staff and so there are no staff costs.

7. INVESTMENTS

	Agricultural	Listed	Total
	Land	investments
	£	£	£
Market Value at 1st July 2023	1,335,000	770,632	2,105,632
Additions	-	43,962	43,962
Disposals	-	(35,334)	(35,334)
Realised gain	-	9,845	9,845
Unrealised gain	35,000	28,852	63,852
	--------------------	------------------	--------------------
Market value at 30th June 2024	1,370,000	817,957	2,187,957
	==========	=========	==========
Historical cost at 30th June 2024	NIL	820,252	810,535
	==========	=========	==========

THE FARMERS CLUB CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 30TH JUNE 2024

7. INVESTMENTS (continued)

Listed investments comprise of:	2024	2023
	£	£
Investment trusts and funds	156,654	152,255
Equities	649,895	612,522
Cash	11,408	5,855
	--------------	--------------
Total market value at 30th June	817,957	770,632
	=======	=======

The valuation of the agricultural land is inherently subjective, as it is based upon valuer assumptions and assessment of market conditions, which may prove to be inaccurate.

8.	DEBTORS	2024	2023
		£	£
	Prepayments and accrued income	12,824	26,441
		==========	==========
9.	CREDITORS		Restated
		2024	2023
		£	£
	Accruals and deferred income	25,245	27,649
		==========	==========

Accruals and deferred income includes deferred income of £1,851 (2023: £2,192), which relates to rental income received in relation to the 2024/25 financial year.

10. MOVEMENT IN UNRESTRICTED FUNDS

					Restated
	Restated				As at 30
	As at 1 July	Income	Expenditure	Gains/(losses)	June 2024
	2023	£	£	£	£
	£
General fund	2,226,214	52,256	(77,396)	73,697	2,274,771
	============	==========	==========	==========	==========

NOTES TO THE FINANCIAL STATEMENTS (continued)

THE FARMERS CLUB CHARITABLE TRUST

YEAR ENDED 30TH JUNE 2024

10. MOVEMENT IN UNRESTRICTED FUNDS

					Restated
	As at 1 July		Restated		As at 30
	2022	Income	Expenditure	Gains/(losses)	June 2023
	£	£	£	£	£
General fund	2,257,055	48,329	(64,189)	(14,981)	2,226,214
	============	==========	==========	==========	==========

11. MOVEMENT IN RESTRICTED FUNDS

	As at 1 July				As at 30
	2023	Income	Expenditure	Gains/(losses)	June 2024
	£	£	£	£	£
Windsor Leadership Trust	10,000	-	(10,000)	-	-
	============	==========	==========	==========	==========
	As at 1 July				As at 30
	2022	Income	Expenditure	Gains/(losses)	June 2023
	£	£	£	£	£
Windsor Leadership Trust	10,000	5,000	(5,000)	-	10,000
	============	==========	==========	==========	==========

Explanations for restricted funds:

Windsor Leadership Trust – used to fund bursaries for individuals enrolled with the Windsor Leadership Trust.

12. ANALYSIS OF NET FUNDS

	Unrestricted	Restricted	Total 30 June
	funds	funds	2024
	£	£	£
Fixed assets
Investments	2,187,957	-	2,187,957
Current assets	112,059	-	112,059
Creditors falling due within one year	(25,245)	-	(25,245)
	------------------------------------	-------------------------	------------------------------------
	2,274,771	-	2,274,771
	=============	=========	=============

13. RELATED PARTY TRANSACTIONS

There were no related party transactions during the year (2023: NIL).

THE FARMERS CLUB CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 30TH JUNE 2024

14. OPERATING LEASES – AS LESSOR

At 30 June 2024, the Trust had future minimum lease receivables due under non-cancellable operating leases for each of the following periods:

each of the following periods:
	2024	2023
	£	£
Not later than 1 year	5,781	5,427
Later than 1 year and not later than 5 years	23,031	21,708
Later than 5 years	-	5,427
	---------------------------	---------------------------
	28,812	32,562
	==========	==========

15. PRIOR YEAR ADJUSTMENT

Statement of Financial Activities

	As previously
	reported	Prior year	As restated
	30 June 2023	adjustment	30 June 2023
	£	£	£
Charitable activities: awarding grants & bursaries	(77,989)	13,000	(64,989)
	------------------------------------	-------------------------	------------------------------------
Total expenditure	(82,189)	13,000	(69,189)
	------------------------------------	-------------------------	------------------------------------
Net expenditure	(28,860)	13,000	(15,860)
	------------------------------------	-------------------------	------------------------------------
Net movements in funds	(43,841)	13,000	(30,841)
	=============	=========	=============
alance Sheet
	As previously
	reported	Prior year	As restated
	30 June 2023	adjustment	30 June 2023
	£	£	£
Cash at bank	130,225	1,600	131,825
	------------------------------------	-------------------------	------------------------------------
Current assets	156,631	1,600	158,231
Creditors	(39,049)	11,400	(24,778)
	------------------------------------	-------------------------	------------------------------------
Net current assets & net assets	2,223,214	13,000	2,236,214
	=============	=========	=============

Balance Sheet

The Farmers Club Charitable Trust

Audit Findings Report

For the Year Ended 30 June 2024

1.	Introduction and Executive Summary ................................................................................................................................................................ 1
2.	Significant audit risks, and other focus areas identified during audit planning .................................................................... 2
3.	Accounting and Audit Matters .............................................................................................................................................................................. 4
4.	Detailed control points ............................................................................................................................................................................................... 7
5.	Emerging issues ............................................................................................................................................................................................................... 9

1. Introduction and Executive Summary

This report summarises our key findings in connection with the audit of the financial statements of The Farmers Club Charitable Trust (“FCCT” or “the Trust”) for the year ended 30 June 2024.

Our audit approach

Our work was planned and performed in order to issue an audit opinion on the financial statements in accordance with International Standards on Auditing (UK) (“ISAs”) and the terms of our letter of engagement. Our audit approach is a risk-based approach founded on us gaining a thorough understanding of the entity and its business in order to allow us to identify the risks of material misstatement within the financial statements. To do this, we consider both the risk inherent in the financial statements themselves and the control environment in which the entity operates. We then use this assessment to develop an effective and efficient approach to the audit.

Limitations

Our audit procedures, which have been designed to enable us to express an opinion on the financial statements, have included an examination of the transactions and the controls thereon.

Our audit included consideration of internal controls relevant to the preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for expressing an opinion on the effectiveness of internal control or to identify any significant deficiencies in their design or operation.

We have included in this report only those matters that have come to our attention as a result of our normal audit procedures and, consequently, our comments should not be regarded as a comprehensive record of all deficiencies that may exist or improvements that could be made.

Overall conclusion and opinion

At the time of issuing this report we anticipate issuing an unqualified opinion on the financial statements.

The Farmers Club Charitable Trust – Audit Findings Report | Year Ended 30 June 2024

2. Significant audit risks, and other focus areas identified during audit planning

We set out below the significant audit risks identified at the planning stage and the conclusions of our audit work:

SIGNIFICANT AUDIT RISK AREA HOW WE ADDRESSED THIS COMMENTARY Presumed risk in revenue recognition Under ISA 240 there is a presumed risk that revenue may We have undertaken the following procedures to Our audit work on revenue did not identify any material be misstated due to improper revenue recognition. We verify the appropriateness of revenue recognition: issues. are required to consider and respond to the risks of improper revenue recognition. The specific risks to FCCT • Substantive testing on all income streams to are with regards to: ensure completeness of income; • Cut-off testing was performed on income
• Legacy and donation income being recognised in the around the year-end to ensure it has been incorrect period; and recognised in the correct period;
• Rental income being recognised in the incorrect • Assessment of the reasonableness of the period. recognition of accrued and deferred income.

Presumed risk of management override

We are required to consider and respond to the risks We reviewed the accounting estimates and See Section 3.1 . arising from management override of controls. judgements.

Specifically, the risk over the use of journal entries to mask fraud and the manipulation of management estimates and judgements to materially alter the financial results and position. The specific risks to FCCT are with regards to:

The estimate of the fair value of the land held for investment purposes being misstated; and
• Grants payable approved prior to the year-end but not paid until after the year-end being accounting for in the incorrect period.

We have analysed the journals made in the year and determined the risk criteria for identifying higher risk journals. Subsequently significant, unusual or unexpected journal postings have been investigated and verified.

We reviewed minutes of meetings of the Board of Trustees and grant documentation for evidence of any grants approved prior to the year-end to ensure that they have been correctly accounted for.

2 The Farmers Club Charitable Trust – Audit Findings Report | Year Ended 30 June 2024

SIGNIFICANT AUDIT RISK AREA HOW WE ADDRESSED THIS COMMENTARY Valuation of land We are required to consider and respond to the risks We have reviewed the valuation provided by the See Section 3.1 . arising from management override of controls. Trustees to ensure that the agricultural land investments are being carried correctly at fair UK GAAP requires investments to be valued at fair value. value. There is therefore a risk that the valuation of the land in the financial statements, which is subject to a high degree We reviewed the underlying assumptions in their of judgement and estimate, does not reflect its current valuation and assessed their reasonableness. fair value and is materially misstated.

The Farmers Club Charitable Trust – Audit Findings Report | Year Ended 30 June 2024

3. Accounting and Audit Matters

3.1 Qualitative aspects of accounting practices and financial reporting

i. Valuation of agricultural Land

Under UK accounting standards, the Trust is required to measure investment property, such as the agricultural land held by the Trust, at its fair value at the end of each financial reporting period. Any movements in the valuation since the end of the previous financial period should be accounted for as a fair value gain / loss in the Statement of Financial Activities.

During the audit we were notified by management that a formal external valuation of the land held at Waltham Abbey and Bridport had not been carried out as at 30 June 2023. Instead James Squier at Bidwells, who is also a trustee of the Trustee, performed an informal valuation concluding that there had been no change in the valuation of either parcels of land since the previous formal valuations carried out as at 30 June 2024 by Symonds & Sampson and Bidwells, which had valued them at £500,000 and £870,000 respectively.

We challenged the appropriation of the estimation relating to the movement in the valuation of the land between 30 June 2023 and 30 June 2024. Subsequent to these discussions, James Squier confirmed that the following assumptions had been taken into consideration for the year-end value of the land;

The planning status had both Bridport and Waltham Abbey had not changed and so the prospect for development had not changed;
There has been no change in use of either parcel of land;
There has been a marginal increase in the open market value of their current use.

We reviewed third party sources for evidence that either corroborated or contradicted the estimation that the value of the land had not changed between 30 June 2023 and 30 June 2024. Subsequently we noted from 3[rd] party property specialists such as Savills and Strutt & Parker that average land values in the South-West and East of England had increased by 8% during the period. Therefore we challenged further the estimation that FCCT’s land had not increased during the period.

Following discussions with James Squier he advised that the land held by FCCT is not comparable with average agricultural land due to its suitability for farming being limited and the current restrictions on development.

We appreciate that the land held by FCCT is different in nature to average agricultural land in the region and acknowledge the expertise of the valuer in this field. On this basis we are satisfied that there is sufficient evidence to support the trustees’ judgement regarding the £35k movement in the value of the land between 30 June 2023 and 30 June 2024 and therefore it is appropriate to continue recognising it at £1,370m in the financial statements.

4 The Farmers Club Charitable Trust – Audit Findings Report | Year Ended 30 June 2024

However, this is an area of significant estimation and judgement and the uncertainty arising from this is heightened by the lack of formal third party valuation carried out as at 30 June 2024. Therefore we propose to include an Emphasis of Matter in our audit report highlighting this matter. An Emphasis of Matter does not impact our overall audit opinion, which remains unqualified, but draws to the attention of the reader of the financial statements the uncertainty in the valuation of the land.

We shall require written confirmation in the letter of representation that the trustees are satisfied that there is no material change in the valuation of the land since its valuation of £1.37m as at 30 June 2024.

ii. Accounting for grant awards

During our review of other creditors we identified that the following liabilities relating to grants awarded in previous financial years had not changed since the previous year-ended 30 June 2023:

Carla Coghlan: £4,900
Kathryn Johnson: £6,500

In addition, we further noted that a cheque issued in the previous financial year-ended 30 June 2023 of £1,600 in respect of a grant awarded to Elizabeth Grant had not been cashed in by the recipient.

Therefore we challenged management as to whether the above three grants remaining ongoing liabilities of FCCT. Following subsequent discussions with management they confirmed that in fact it had been agreed with all three recipients that they were no longer eligible for funding and so their grant awards had been rescinded.

Upon review of the relevant correspondence with the grantees it was noted that the agreement to rescind their grant awards was reached prior to 30 June 2023, the previous financial year-end.

As such liabilities in the previous year’s financial statements were overstated by £11,400 and cash and bank was understated by £1,600, as these grant awards that had been cancelled should have been de-recognised from creditors / payments out of the bank account and instead reversed against the grant expenditure for that financial year.

Under UK accounting standards where an error in the prior year’s financial statements is material it is required to recognise a prior year adjustment in the comparatives to the financial statements of the first period in which the error is identified. Therefore if the above mentioned errors are considered to be material, then the 2023 figures in the financial statements for the year-ended 30 June 2024 should be amended to correct the errors.

However where errors in the prior year’s financial statements are considered to be immaterial, accounting standards permit the error to be correct in the current year. Therefore if the above mentioned errors are considered to be immaterial, then the 2023 figures in the financial statements for the year-ended 30 June 2024 would remain the same as in the prior year’s signed financial statements and instead the correction would occur in the 2024 financial statements.

5 The Farmers Club Charitable Trust – Audit Findings Report | Year Ended 30 June 2024

Following discussions with management we were notified that the Trustees have considered the size and nature of the error and concluded that it is material, and so a prior year adjustment should be recognised in the 2023 comparative figures.

Although the total of these errors of £13,000 is significantly below our overall audit materiality of £45,000, which is based on 2% of the total assets of FCCT, it does exceed the separate lower area specific materiality of £1,600 applied to our review of income and expenditure during the audit. Given the significance of this error to expenditure therefore, we are satisfied that the Trustees’ judgement that it should be considered to be material is reasonable and therefore it is appropriate to correct it by way of a prior year adjustment.

iii. Accounting policies and estimates

We are satisfied that the accounting policies and estimates adopted by the Trustees are appropriate to The Farmers Club Charitable Trust and its circumstances.

3.2 Accounting and audit matters

i. Summary of adjusted and unadjusted misstatements

During the audit we identified one misstatement, other than clearly trivial items, that has not been adjusted for. This consists of an £86 understatement of agricultural grant income.

ii. Letter of representation

International Standards on Auditing require us to obtain written representations from the Trustees when you approve the financial statements. The letter contains standard matters as well as the following item specific to The Farmers Club Charitable Trust:

The valuation of the investment property as at 30 June 2024 is considered to not be materially different to the valuation as at 30 June 2024 of £1.37m estimated by James Squier on behalf of the Trustees.

6 The Farmers Club Charitable Trust – Audit Findings Report | Year Ended 30 June 2024

4. Detailed control points

During the course of our audit we identify detailed control points that we feel need to be brought to the attention of the Trustees and certain recommendations for improvements and/or corrective action. Our audit included consideration of internal controls relevant to the preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for expressing an opinion on the effectiveness of internal control or to identify any significant deficiencies in their design or operation. The matters and detailed control points that we have identified are graded within the following framework to assist the Trustees in assessing their impact.

RATING	RATING TYPE	CHARACTERISTICS OF RATING TYPE
Significant These findings are considered to be significant to the management of risk in the business. The finding represents a serious weakness in systems and controls currently in place or a potentially fundamental control that has been omitted from the risk management systems as currently in operation. • Key control omitted • Key control not designed or operating effectively, for example as indicated by multiple exceptions found during our review work • Evidence of override of controls in place with significant or potentially fraudulent outcomes • Non-compliance with laws and regulations
Important Important findings that should be reviewed by management, pending corrective action and or updates to systems and controls. • Errors and exceptions noted during our testing that had corrected retrospectively during the year by management. • Potential improvement to existing control noted • Possibility for override of controls exists • Our review noted numerous exceptions but not in key controls
Limited Findings that identify non-compliance with established systems and controls. • Minor control weakness, for example limited exceptions noted during our review work
Advisory Items requiring no immediate action but which may be of interest to management or best practice advice. • Information for department management • Control operating but scope for efficiency and/or effectiveness improvements exist • Control operating but not necessarily in accordance with best practice • Recent or anticipated developments may necessitate new controls.

7 The Farmers Club Charitable Trust – Audit Findings Report | Year Ended 30 June 2024

During the current year audit we did not identify any matters that we consider necessary to bring to your attention. However we have provided below the latest status of outstanding issues arising from previous year audits:

Prior year

ISSUE:			CONTROL POINT RATING:	LIMITED
Risk		Our comments & proposals	Current year update
During the audit we noted instances where expense claims submitted by trustees were paid without any receipts being provided or requested to support the amounts being claimed. This increases the risk of erroneous payments being made.		We recommend that all expense claims include supporting receipts attached to them before they are reimbursed.	No changes noted.

8 The Farmers Club Charitable Trust – Audit Findings Report | Year Ended 30 June 2024

5. Emerging issues

Charity reporting and governance matters

Charities Act 2022

The Charities Act 2022 (the Act) made amendments to the Charities Act 2011 (the 2011 Act) in a number of specific areas, largely in response to the recent Law Commission review of charity legislation and with the overarching objective of making life simpler for charity trustees, as well as harmonising certain procedures, such as making amendments to a charity’s objects, across the various different corporate structures within which charities operate. The majority of changes are now in force, with the most recent changes adopted on 7 March 2024 relating to:

Making changes to governing documents
Selling, leasing or otherwise disposing of charity land
Charity mergers
Authorisation of certain trustee payments
Defective or potentially defective trustee appointments

Because the Act is an amending act, the form and content of charity financial reporting will continue to be governed by the Charities Act 2011. However, all relevant Charity Commission guidance has now been updated to reflect these changes.

For further information about the changes resulting from the Charities Act 2022, including those that came into force on 31 October 2022 and 14 June 2023, can be found here.

Charity Commission guidance on the impact of the cost of living crisis

The Charity Commission has published guidance on managing financial difficulties arising from the cost of living crisis, covering the following main subject areas:

Trustees’ duties and decision making
What to do if you experience financial difficulties
What to do if your charity cannot continue to operate
Reporting a serious incident to the Charity Commission

The new page emphasises various existing guidance for Trustees, but with a specific focus on the impact of the current economic climate, and it can be found here.

9 The Farmers Club Charitable Trust – Audit Findings Report | Year Ended 30 June 2024

Charity Commission guidance on social media use

On 18 September 2023, the Charity Commission published new guidance concerning charities’ use of social media. The guidance addresses both charities’ own use of social media and Trustees’ responsibilities in this regard, and the potential risks surrounding charity employees’ use of social media. The guidance is clear that charities using social media should have a social media policy in place and should ensure that it is followed. A checklist for developing a social media policy has also been created by the commission.

The Commission is clear that employees should be free to use social media in their own right but notes the potential for private posts to be interpreted as the views of the charity, with the risk to the charity’s reputation that this could bring, and the consequent need for charities to consider setting guidelines to govern their employees’ use of media and to set policies concerning how the charity would respond to any negative exposure.

The guidance can be found here.

Charity commission guidance for charities facing decisions about donations

On 4 March 2024 the Charity Commission published guidance to help charities when deciding to accept, refuse or return a donation. Whilst the default position should be accepting donations to further a charities objectives, the Commission appreciates that there are times when this will be difficult for a charity and has set out an approach to support trustees when making difficult decisions. The guidance is set out in a way to ensure that the law, trustee duties and charity’s powers are all considered.

The guidance sets out examples of when donations must be refused or returned, donations that are likely to be refused/returned, additional considerations and how to document the decision made by trustees.

The guidance can be found here.

Collaborative working and mergers: an introduction (CC34)

Following the changes as a result of the implementation of Charities Act 2022, the Charity Commission has produced new guidance on working in collaboration with other charities either as:

working as two separate organisations on a joint project
merging two legally separate charities to form one charity

The guidance considered in more detail the definitions of the above, key thoughts, legal considerations, practical implications in terms of when to get the Commission involved and different structures.

The guidance can be found here.

10 The Farmers Club Charitable Trust – Audit Findings Report | Year Ended 30 June 2024

Fundraising levy review

In April 2024 the Fundraising Regulator announced plans to increase their yearly fundraising levy for the first time since its introduction in 2016. Each year there are around 2,000 charities covered by the levy, which is charged to charities who are registered with the Fundraising Regulator. The levy will increase for everyone, but the more you as a charity spend on fundraising, the higher that percentage increase will be. Conversely, the less you spend on fundraising, the lower it will be.

The revised rates take effect from September 2024, with further increases from September 2025. Details of the rate changes can be found here.

Charity Commission report on public trust in charities and the role and experience of trustees

On 18 January 2024, the Charity Commission released a report which contained ten years’ worth of research into the public views of charities and about charity trustees. Increasing public trust is a key focus for the Charity Commission and this report will help steer future guidance and support for charities. Key findings from the research programme include:

Public trust is complex and impacted by a number of factors from regulation to negative actions, however everyone has different views based on personal circumstances
Public trust is stabilising
Responsible use of funds remains a key factor in trust of charities
People believe charities are making an impact
Trustees understanding the role and responsibilities is good but there is more to be done. For example 1 in 5 trustees did not fully appreciate that they had a collective responsibility for critical functions e.g. financial oversight and the charity’s annual accounts

The full report can be found here.

Charity Commission guidance for trustees on investment policies

The Charity Commission has updated its guidance on charities and investments following its call for information and consultation on financial investments. The updated guidance reflects the judgment of the Chancery Division in Butler-Sloss & Ors v The Charity Commission for England and Wales & Anor, and is known as CC14.

As a reminder, the verdict clarifies that where trustees are of the reasonable view that particular investments (or classes of investments) potentially conflict with the charitable purposes, the trustees have the discretion to exclude such investments. They should exercise that discretion by reasonably balancing all relevant factors including the likelihood and seriousness of the potential conflict, and the likelihood and seriousness of any potential financial effect from the exclusion of such investments.

The guidance can be found here.

11 The Farmers Club Charitable Trust – Audit Findings Report | Year Ended 30 June 2024

Updated guidance on decision-making for charity trustees (CC27)

In September 2024 the Charity Commission published updates to its guidance on making trustee decisions. The aim of these updates is to make the guidance more accessible and easier to use, however the backbone of the guidance remains the seven principles developed by the courts when they reviewed decisions made by trustees, which we have set out below.

When making decisions, trustees must:

act within their powers
act in good faith
be sufficiently informed
take into account all relevant factors
identify and disregard any irrelevant factors
manage conflicts of interest
ensure their decision is within the range of decisions that a reasonable trustee body could make

The revised guidance can be found here.

Updated guidance on “improving your charity’s finances” (CC12)

In September 2024 the Charity Commission published updates to its guidance on “improving your charity’s finance”. These updates are aimed at making the guidance more accessible and provide advice on actions that can protect charities against financial difficulties, as well as understanding what to do if a charity is insolvent, or at risk of insolvency.

The updated guidance, which is separated depending on the legal structure of the charity, can be found here.

Charity Commission guidance for charity meetings

The charity commission guidance on charity meetings was also updated in July 2024 to make it more accessible and easier to use. The guidance covers how meetings should be planned, run and recorded, and sets out the ways in which meetings can be held (face to face, virtual or hybrid). The guidance emphasises that you must check your governing document to ensure that you are acting in accordance with its rules about meetings, to ensure that decisions are not invalidated.

The guidance can be found here.

12 The Farmers Club Charitable Trust – Audit Findings Report | Year Ended 30 June 2024

Charity Commission guidance on appointment of trustees

The Charity Commission updated its guidance on recruitment of trustees in March 2024, surrounding when the Commission can confirm trustee appointments.

Where an appointment is defective, or potentially defective, the Commission can confirm the appointment by making an order where the person consents to their appointment. Whilst making the order, the Commission can also validate a past act of the person concerned. This will only be undertaken where the charity is unable to confirm the appointment or validate the past act itself via its governing document, the Trustee Act 1925 or the Companies Act 2006.

Further guidance can be found here.

Charity Commission guidance on Charity Banking

In July 2024 the charity commission published information on charity banking and the support available to charities who are struggling with accessing adequate banking services. This follows on from an open letter which the Commission wrote to the Chief Executives of UK banks, requesting their urgent action on issues that charities are facing with their banks which include:

Having accounts closed or suspended suddenly for long periods of time
Facing a reduction in bespoke banking services
Experiencing poor customer service and administrative delays
Finding that online banking is not designed to match the way charities operate

The guidance can be found here.

Volunteers

The Social Purposes sector relies heavily on its volunteers. Typically, these are unpaid and may in certain circumstances be paid out of pocket expenses. This is usually limited to food, drink, travel or any equipment they need to buy to undertake their duties. Normally, there are no employment taxes implications for reimbursement of these out of pocket expenses as long as they are reasonable.

If the volunteers are paid expenses that do more than reimburse the costs incurred then HMRC may contend that they are receiving remuneration for their services. In which case, the payments will be taxable as employment income if it can be shown that they either hold an office or employment. If they do not hold an office or employment, the payments may be Miscellaneous Income.

In a recent Employment tribunal case M Groom v Maritime and Coast Guard Agency, the volunteer was judged to be a worker which confers employment rights such as holiday pay, National Minimum/Living wage etc. It is therefore imperative that the correct policies, controls and governance are in place to avoid any possible successful employment status challenge by HMRC.

13 The Farmers Club Charitable Trust – Audit Findings Report | Year Ended 30 June 2024

Financial Reporting

Financial reporting framework

UK GAAP Developments – FRS 102

Following the recent Periodic Review and other amendments to UK and Ireland accounting standards, the Financial Reporting Council (FRC) has issued now revised versions of FRSs 100, 101, 102, 103, 104 and 105. The FRC has also revised the “Overview of the financial reporting framework”.

The changes to FRS 102 include the significant revisions made to leasing and revenue recognition which arose from the Periodic Review 2024. Most of these amendments are effective for accounting periods beginning on or after 1 January 2026, although those changes that relate to “supplier finance arrangements” have an earlier effective date of accounting periods beginning on or after 1 January 2025.

These amendments seek to provide greater consistency and more (but not total) alignment to international accounting standards including:

A new 5 step model for revenue recognition, which is aligned to IFRS 15: Revenue from Contracts with Customers, (with some simplifications);
On balance sheet lease accounting for lessees, aligned to IFRS 16: Leases, (with certain practical exemptions); and
Other modifications to fair value measurement, uncertain tax positions, business combinations, and a revised Section 2 aligned with IASB’s Conceptual Framework.

The effective date for most amendments is periods beginning on or after 1 January 2026, with early adoption permitted. The new standard sets out the requirements for the restatement of comparative amounts. There are choices available in some areas of change but others are more prescriptive so you will need to take care to ensure that you have complied with each relevant requirement and made the appropriate disclosures.

The transition to the new requirements will take careful planning for many organisations currently following FRS 102. For instance, many organisations will see leases (and debt) hit their balance sheets for the first time. For some this will seem strange and for most will require careful planning to ensure, amongst other things, that all leases are captured, the financial effects are known, effects on reporting requirements e.g covenants are understood.

The new accounting standards are available on the FRC website here. Note that despite the effective dates in the future, the new versions are described as the “current edition” with versions that are still in use described as “superseded editions”.

With the changes to FRS 102, there will also be changes to the Charities SORP, which had its last major revision in 2015 along with amendments in 2019. We are expecting its release in 2025, with an effective date from 1 January 2026 in line with the changes in FRS 102. Along with the changes noted above, we are expecting it to also introduce a third tier of charity as well as revisiting the allocation of overhead expenditure.”.

14 The Farmers Club Charitable Trust – Audit Findings Report | Year Ended 30 June 2024

New requirements for other information

FRC publishes revised Ethical Standard

The Financial Reporting Council (FRC) has updated its Ethical Standard for Auditors with the revised standard being effective from 15 December 2024. The changes are designed to align the UK with international ethical standards, simplify and clarify the existing standard and to introduce a new targeted restriction on fees from entities related by a single controlling party. The FRC has cancelled its plans to extend prohibitions of tax services provided to the controlling shareholders of unlisted companies in favour of enhanced independence risk assessments. Read more here.

FRC consults on enhancing auditor reporting of laws and regulation breaches

The FRC has opened a consultation on strengthening the requirements of ISA (UK) 250 on auditors to detect and report material misstatements from non-compliance with laws and regulations. It also seeks to clarify instances where auditors should report such breaches, and other significant matters, to the relevant regulators. The FRC proposes a more robust risk assessment to help auditors identify those laws and regulations that have, or may potentially have, a material effect on the financial statements. The consultation closed on 12 January 2024 and is proposed to be effective for accounting periods beginning on or after 15 December 2024.

Auditing developments

IAASB proposes increased auditor responsibility on fraud

IAASB proposes increased auditor responsibility on fraud The International Auditing and Assurance Standards Board (IAASB) has issued an Exposure Draft to revise ISA 240 “The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements”. The main change is to clarify the auditor’s role in identifying fraud during an audit and reminds auditors of the need to maintain professional scepticism. The Exposure Draft includes, inter alia, the need to strengthen the identification and assessment of material misstatement due to fraud, increased audit documentation, increased communication with management and those charged with governance regarding fraud and increased transparency on the auditor’s responsibility on fraud in the audit report. Comment is open until 5 June 2024.

Materiality in practice

The FRC has published “Materiality in practice: applying a materiality mindset”, a report looking at how companies can improve their reporting by being more focused and strategic when assessing materiality. The report, in four sections, recognises that removing irrelevant information strengths the value of an entity’s reporting and encourages preparers to think about investors’ needs and decision making and take a holistic approach towards materiality. It also encourages preparers to focus on the key issues that management and the board are prioritising across the short, medium and long-term. Read more here.

15 The Farmers Club Charitable Trust – Audit Findings Report | Year Ended 30 June 2024

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