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2021-08-31-accounts

Company number 3546759 Charity number 1069942

Clarendon Trust Limited

Report and Financial Statements Period ended 31 August 2021

CLARENDON TRUST LIMITED

Financial Statements - 31 August 2021

CONTENTS

Page
Trustees' Report 1-7
Independent Auditors' Report 8-10
Consolidated Statement of Financial Activities 11
Balance Sheet 12
Consolidated Cash Flow Statement 13
Notes to the Financial Statements 14 -26

CLARENDON TRUST LIMITED

TRUSTEES’ REPORT

REFERENCE AND ADMINISTRATIVE DETAILS

Clarendon Trust Limited is a registered charity (1069942) and a company limited by guarantee (3546759).

Its registered office is: 21/23 Clarendon Villas Hove East Sussex BN3 3RE

The Trustees throughout the period, (unless otherwise shown), and at the date the report is signed were:

S Horne P Jarvis N Jones H Evans (resigned on 20[th] July 2021) J Foreman K Stevens M Sibanda K Ball

Company Secretary A Waller

The senior staff of the charity throughout the period were: S Boon

S Horne N Jones J Virgo S Dawson

The company’s advisors are:

Bankers: National Westminster Bank plc 103 Church Road Hove East Sussex BN3 2BF Registered Auditors: Chariot House Limited 44 Grand Parade Brighton BN2 9QA

1

CLARENDON TRUST LIMITED

Trustees’ Report – continued

The trustees present their report and the financial statements for the period ended 31 August 2021. The financial statements have been prepared in accordance with the accounting policies set out on pages 14 to 16 and comply with current statutory requirements the Financial Reporting Standard applicable in the U.K. and Republic of Ireland (FRS102) (effective from 1 January 2019), the Memorandum and Articles of Association, and the Statement of Recommended Practice: Accounting and Reporting by Charities 2019.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The company was incorporated on 16 April 1998 and was registered as a charity on 5 June 1998. It is governed by its Memorandum and Articles of Association. The company is limited by guarantee and has no share capital. The liability of the members is £10 each in the event of the company being wound up. The charity is also known as Emmanuel.

Potential new trustees are recommended by the Elders of the church and are appointed by the members, if considered suitable following interview by the existing trustees. The induction process for trustees involves supplying them with copies of the Memorandum & Articles of Association, recent Accounts and Minutes of Trustees’ Meetings. They are also shown the work of Clarendon Trust Limited and meet with the senior staff. Opportunities for training are also made available through our lawyers and auditors. Trustees meet regularly through the period and all the major decisions of the charity are made with them in consultation with the church Elders.

Friends First Trust and Oaks Trust are connected with Clarendon Trust Ltd (of 17 Clarendon Villas, Hove, East Sussex BN3 3RE) in that the charities have common trustees and Clarendon Trust Ltd is the sole corporate member of both Friends First Trust and Oaks Trust.

RISK MANAGEMENT

The trustees have recognised the importance of assessing and managing risk associated with the charity’s objectives. The process of identifying risk is ongoing and has been an essential part of the management of the charity for some periods. Clarendon Trust and its subsidiaries Friends First Trust and Oaks Trust have a set of comprehensive policies and rules in place to ensure ongoing identification, management and documentation of foreseeable risks.

Financial Sustainability is monitored through the Finance Department, Trustee meetings and subcommittees. Regular management accounts give an up-to-date picture of Clarendon Trust’s financial position each month and cash flow forecasts monitors the organisation’s liquidity. Attention has also been focussed on non-financial risks arising from fire, health and safety, and food hygiene. Members of staff undergo relevant training on a regular basis. A comprehensive insurance policy exists to ensure that all insurable risks are covered. DBS checks are in place to safeguard young people and minimise the risk of inappropriate persons being involved in pastoral and youth work.

OBJECTIVES AND ACTIVITIES

The trustees have had regard to the Charity Commission guidance on public benefit, and paid due regard to it in deciding what activities the charity should undertake. The trustees are satisfied that the ongoing activities which they are involved in means that the charity is continuing to meet the public benefit requirement. The main objectives of the charity are to advance the Christian faith, to provide assistance for aged persons and those in conditions of need, hardship or distress, and to make gifts, donations or loans to any charitable religious institution. These objectives have not changed during the period. Clarendon Trust aims to encourage, equip and care for members of the church in Brighton and Hove as well as to work with individuals and organisations in the United Kingdom and internationally who share the charity’s vision and values.

2

CLARENDON TRUST LIMITED

Trustees’ Report – continued

The key elements of the charity’s strategy are:

The charitable company receives a certain amount of voluntary help in various areas of church life including administration, children’s work, Sunday services, social engagement ministries. It is not possible to quantify the value of this.

ACHIEVEMENTS AND PERFORMANCE FOR PUBLIC BENEFIT

The trustees confirm that they have referred to the Charity Commission’s general guidance on public benefit when reviewing the Charity’s aims and objectives and in planning future activities. Emmanuel Church was founded over 40 periods ago. In this time, we have sought to serve the local City, the UK and internationally. This report reflects aspects of each of these 3 components.

1. Sunday services and Multisite

In 2011 Emmanuel embarked on a multi-site model to allow for growth across the Brighton and Hove conurbation. The church at the beginning of 2020 was meeting in four locations in Brighton, Shoreham, Hove and Hangleton running services on every Sunday across the city. In March 2020 all church services were stopped in response to the global pandemic, and an online provision was created in its place. Through the 2020 Autumn Term and 2021 Spring Term Emmanuel responded to the fluctuating government restrictions by creating a hybrid of online and in-person Sunday services in the buildings that we own. That meant the Shoreham Site was unable to open on a Sunday but started to hold prayer meetings in the Shoreham Baptist Church. As expected, attendance was much lower than prepandemic as was the number of volunteers. This has meant a reduction in provision of ministries and the decision was made to hold off kids work until after Summer 2021.

2. Training, courses and membership care

During 2021 in response to government restrictions, training has largely moved online. Emmanuel had groups for key leaders and future potential leaders going through monthly training materials. Small groups have been a mixture of online and in-person gatherings, providing a key point of contact in a very isolating season, and helping people engage with spiritual content. The Alpha Course has continued online and saw many hear the gospel and make a commitment. Our youth work continued to flourish with the regular provision of online weekly and monthly events as well as opening in-person gatherings and having a weekend away at the beginning of August. Pastoral care has continued to progress at each site, with a standardised structure being rolled out, making the most of the lessons learnt during the pandemic months.

3. Church planting

Emmanuel is continuing to actively partner with a number of churches and church plants in the UK, Continental Europe and Canada. This involves cities such as London, Bath, Belfast, Berlin, Amsterdam, Krakow and Ottawa. In 2021 we continued to financially support, by means of grants, the church plants in Belfast, Krakow and Bath. Emmanuel is linked with these churches and church plants and supports them through regular visits and training as well as building strong relationships with the congregations.

3

CLARENDON TRUST LIMITED

Trustees’ Report – continued

4. Newday

In our seventh period with oversight of Newday, due to the effects and restrictions of the global pandemic the Newday team organised and ran an online event in the summer with worship and teaching sessions. The team is planning to run a live event as per pre-pandemic experience in the summer of 2022. Budget and plans move forward. Conversations and emphasis on the future of Newday becoming an independent charity continue.

5. Social Action

This continued to be an important area for us during 2021. The Social Engagement ministries, under the freshly branded ‘Care for Our City’ umbrella, included the following:

Oaks Trust

This subsidiary charity started activity during 2014 and seeks to help those who are poor and disadvantaged for a variety of reasons. The charity has historically overseen the activities of the Shoreham Foodbank, but now additionally has governance for a further two food banks (Clarendon Centre & Villas) which were established in this period. Two other projects, Baby Basics Shoreham and Baby Basics Brighton have also started operating and are additionally covered by the Trust.

In response to the COVID-19 crisis the food banks have seen a much greater demand for their services and they have grown and developed volunteer teams significantly through a range of training opportunities to provide a better service to those in need. In the midst of the current crisis, the food banks have received significantly more donations from the public. They continued to develop healthy relationships with the local COVID-19 Mutual Aid groups, local councils and other agencies. The food banks expanded and adapted their operations to comply with social distancing rules, compliant with government guidelines.

Friends First Trust

This subsidiary charity provides support to adult men and women with a background in homelessness and/or long-term unemployment to gain work experience and link them with opportunities to increase their employability and access to paid employment. The charity works in partnership with local employers who open up work experience and paid employment opportunities to its beneficiaries. Friends First works with socially minded property investors to enable beneficiaries to access secure and affordable accommodation. Friends First recruit, screen, and train volunteer mentors and befrienders to come alongside beneficiaries living in their local communities. Friends First also provides intensive paid-person support for beneficiaries to assist them in gaining momentum and achieving independent living. The charity also has access to counselling referral and regularly work alongside and signpost to other like-minded agencies in the city.

From November 2019, Friends First have actively been involved in the leading and running of the Brighton Churches Night Shelter. In March 2020, all guests on the Night Shelter were moved to a location in Portslade called the Circle. This project ran till March 2021 with two members of the team collectively giving 486 hours to the project from March 2020 - March 2021. The Friends First team developed a day-time programme including a mentoring facility. Friends First were also involved with Keys Detox - a detox programme to help people escape from alcohol and drug addiction through integrated medical, spiritual and community support. In light of COVID-19, much support was moved online.

4

CLARENDON TRUST LIMITED

Trustees’ Report – continued

FINANCIAL REVIEW

The accounts on pages 11 to 26 comply with statutory requirements of the Memorandum and Articles of Association.

The Consolidated Statement of Financial Activities on page 11 shows total net outgoing resources of £48,266 (2020: £300,131 incoming). The charitable company has continued to fund, out of the general fund, a variety of projects and activities which are in line with its stated objectives. The level of activity for the period was satisfactory. There was a balance of £1,423,010 (2020: £1,440,087) on the unrestricted funds at the period end. The principal restricted fund operated by the charity is the building fund. This has been used to fund the purchase and construction of the Clarendon Centre.

The main asset of the charitable company is the freehold property known as the Clarendon Centre, which is used as a church meeting place. The results of all subsidiaries - Friends First Trust, Oaks Trust and Clarendon Enterprise Trading – are consolidated into these financial statements and are included within restricted funds. The charitable company is dependent upon the continued receipt of donated income. At the period end its financial position was satisfactory and the trustees are satisfied that it is appropriate to prepare the accounts on a going concern basis.

The charity’s employees’ remuneration including key management personnel is set according to a salary band structure that has been established by the trustees using benchmarks with comparable organisations.

RESERVES POLICY

Clarendon Trust’s reserves policy is to maintain a sufficient level of reserves to enable operating activities to be maintained, taking account of potential risks and contingencies that may arise from time to time. The level of reserves is monitored throughout the period and the policy is reviewed annually by the trustees. The trustees consider that the charity currently needs to maintain free reserves of three months unrestricted expenditure. At 31 August 2021, free reserves were £390,881.

The charity has a number of designated and restricted funds, details of which are given in notes 10 and 11 to the financial statements. Any funds which would only be realised by disposing of fixed assets held for charity use are also excluded from the figure for free reserves.

5

CLARENDON TRUST LIMITED

Trustees’ Report – continued

PLANS FOR FUTURE PERIODS

Clarendon Trust Limited’s key objectives for the future are to continue the communication of the Christian gospel in a clear and contextually relevant way and to develop the growing work of service to the community and internationally both through the work of the charity as an organisation and through the individual members of it. Each period the leadership of the trust have a strategic and financial plan that is shaping major decisions.

The primary aim of this plan is to see continued growth in our online and in-person Sunday meetings, more effective care of our membership and continued outreach to those in need in our society. We’ll continue to focus on leadership development to help run the increasing responsibilities as a growing multi-site church. We’re also looking to further support the current church plants overseas in various ways including regular visits, training and financial resources. With regards to properties, we’re planning to maintain our existing fixed assets to continue to serve our operations and projects. We want to further build capacity in our social action ministries to serve a greater number of people in the city.

The most significant external risk faced by the charity continues to be the risk of the Coronavirus Outbreak impacting the health of the staff team and the charity’s ability to fulfil its charitable objectives. The pandemic has required significant changes to our working arrangements with a much greater reliance on the live streaming of our activities. Much effort has gone into our online Sunday service and kids work provision whilst also more recently in-person gatherings for those that are able. Homeworking and the use of technology continues to enable much of our work, small group life and pastoral support to continue. Core funding from our members has remained and is expected to remain constant as past experience tells us that the church members respond very positively when others are in need. We make continued adjustments to our outgoings by working to a budget that allows us to meet the objectives of the charity and to break even whilst also ensuring our free-cash reserves continue to be in a position of strength.

TRUSTEES RESPONSIBILITIES

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

Company law requires the trustees to prepare financial statements for each financial period and not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and charity and of the incoming resources and application of resources, including the income and expenditure, of the group for that period.

6

CLARENDON TRUST LIMITED

Trustees’ Report – continued

In preparing these financial statements, the trustees are required to:

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

Financial statements are published on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the charity’s website is the responsibility of the trustees. The trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein.

STATEMENT OF DISCLOSURE TO AUDITOR

The trustees who are in office on the date of approval of these financial statements have confirmed that, as far as they are aware, there is no relevant audit information of which the auditor is unaware. Each of the trustees have confirmed that they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.

AUDITORS

Chariot House Limited have been appointed as auditors via a resolution at the Annual General Meeting. This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies’ exemption.

Approved by the trustees on 5[th] April 2022 and signed on their behalf by

Neville Jones (Chair of trustees)

21-23 Clarendon Villas, Hove BN3 3RE

7

INDEPENDENT AUDITORS REPORT TO THE TRUSTEES AND MEMBERS OF CLARENDON TRUST LIMITED

Opinion

We have audited the financial statements of Clarendon Trust (the 'charitable company') (the ‘parent company’) and its subsidiaries (‘the group’) for the period ended 31 August 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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 group’s and the parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

8

INDEPENDENT AUDITORS REPORT TO THE TRUSTEES AND MEMBERS OF CLARENDON TRUST LIMITED (CONTINUED)

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company, and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 7, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the group’s and parent company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent company 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:

We gained an understanding of the legal and regulatory framework applicable to the group and parent company and the industry in which it operates, and considered the risk of acts by the group and parent company that were contrary to applicable laws and regulations, including fraud.

9

INDEPENDENT AUDITORS REPORT TO THE TRUSTEES AND MEMBERS OF CLARENDON TRUST LIMITED (CONTINUED)

We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006, Charities Act 2011, and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel when considered necessary. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of management bias by the trustees that represented a risk of material misstatement due to fraud.

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

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

John Thacker FCA DChA (Senior Statutory Auditor) for and on behalf of Chariot House Limited Chartered Accountants 44 Grand Parade Brighton East Sussex BN2 9QA

Date: 5[th] April 2022

10

CLARENDON TRUST LIMITED

Consolidated Statement of Financial Activities (including income and expenditure account) for the period ended 31 August 2021

Unrestricted Restricted Total funds Total funds
Notes funds funds 2021 2020
INCOME FROM £ £ £ £
Donations and legacies 2 1,271,390 35,126 1,306,516 2,246,554
Charitable Activities
Housing and Work Support - 28,833 28,833 36,360
Conferences and other events 1,836 - 1,836 54,038
Trading activities - - - 1,645
Investments 148 - 148 626
Other 3,549 - 3,549 72,452
Trading Subsidiary 17,057 - 17,057 195,683
─────── ────── ────── ──────
Total income 1,293,980 63,959 1,357,939 2,607,358
─────── ────── ────── ──────
EXPENDITURE ON
Raising Funds 7,862 - 7,862 12,294
Trading Subsidiary 8,037 - 8,037 224,140
Charitable activities
Conference costs 24,289 - 24,289 72,787
Café and Bookshop costs - - - 6,119
Pastoral costs 826,758 79,245 906,003 1,194,826
Mission support costs 377,321 - 377,321 677,867
Housing and Work Support - 82,693 82,693 119,193
─────── ────── ─────── ───────
Total expenditure 3 1,244,267 161,938 1,406,205 2,307,227
─────── ────── ────── ──────
Net income (expenditure) 49,713 (97,979) (48,266) 300,131
Transfers between funds 10/ (66,790) 66,790 - -
11
─────── ────── ────── ──────
Net movement in funds (17,077) (31,189) (48,266) 300,131
Fund balances brought forward at
1 January 2020 1,440,087 1,249,075 2,689,162 2,389,031
─────── ─────── ────── ──────
Fund balances carried forward
at 31 August 2021 12 1,423,010 1,217,886 2,640,896 2,689,162
═══════ ═══════ ═══════ ═══════

The Statement of Financial Activities reflects the results of continuing activities for the period. There were no recognised gains or losses for the period other than those shown on the Consolidated Statement of Financial Activities.

The notes on pages 14 to 26 form part of these financial statements.

11

Company number 3546759

CLARENDON TRUST LIMITED

Balance Sheets at 31 August 2021

Notes 2021 2020 2021 2020
Group Group Charity Charity
£ £ £ £
FIXED ASSETS
Tangible assets 6 1,709,139 1,815,705 1,709,139 1,815,705
CURRENT ASSETS
Stock 7 - - - -
Debtors 8 118,631 104,188 168,592 145,874
Cash at bank and in hand 1,011,390 928,562 856,710 827,401
────── ────── ───── ─────
1,130,021 1,032,750 1,025,301 973,275
CREDITORS - AMOUNTS
FALLING DUE WITHIN ONE
PERIOD 9 (198,264) (159,293) (147,575) (128,768)
───── ───── ───── ─────
NET CURRENT ASSETS 931,757 873,457 877,726 844,507
───── ───── ───── ─────
TOTAL ASSETS LESS CURRENT
LIABILITIES AND NET ASSETS 2,640,896 2,689,162 2,586,865 2,660,212
═══════ ═══════ ═══════ ═══════
FUNDS
Unrestricted funds
General funds 10 527,131 395,334 588,145 465,368
Designated funds 10 895,879 1,044,753 895,879 1,044,753
Restricted funds 11 1,217,886 1,249,075 1,102,841 1,150,091
─────── ─────── ─────── ───────
TOTAL FUNDS 12 2,640,896 2,689,162 2,586,865 2,660,212
═══════ ═══════ ═══════ ═══════

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

Approved by the trustees, signed on their behalf by and authorised for issue on 5[th] April 2022

Neville Jones (Chair of trustees)

The notes on pages 14 to 26 form part of these financial statements.

12

CLARENDON TRUST LIMITED

Consolidated Cash Flow Statement for the period ended 31 August 2021

2021 2020
Reconciliation of net movement in funds £
£		 £ £
to net cash flows from operating
activities
Net movement in funds (48,266) 300,131
Investment income (148) (626)
Depreciation 106,566 117,724
Decrease in stock - 2,526
(Increase)/Decrease in debtors (14,443) 9,423
Increase/(decrease) in creditors 38,972 94,815
────── ──────
Net cash inflow (outflow) from operating 82,680 523,993
activities
Returns on investments and servicing of
finance
Investment income received 148 626
────── ──────
Net cash inflow from returns on 148 626
investments and servicing of finance
Capital expenditure
Purchase of tangible fixed assets - (495,000)
Disposal of tangible fixed assets - -
────── ──────
Net cash outflow from capital - (495,000)
expenditure
────── ──────
Increase/(decrease) in cash in the period 82,828 29,619
══════ ══════
Reconciliation of net cash flow to
movement in net cash funds
Net funds at beginning of the period 928,562 898,943
Change in net funds during the period 82,828 29,619
────── ──────
Net funds at end of the period 1,011,390 928,562
══════ ══════

The notes on pages 14 to 26 form part of these financial statements.

13

CLARENDON TRUST LIMITED

Notes to the Financial Statements for the period ended 31 August 2021

1 ACCOUNTING POLICIES

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

(a) Basis of preparation

Consolidated accounts have been prepared which consolidate the results of Clarendon Trust Limited, Friends First Trust and Oaks Trust on a line by line basis. A separate Statement of Financial Activities, or Income and Expenditure Account, has not been presented for the charitable company itself as it has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.

The gross income of Clarendon Trust Limited itself was £1,256,950 (2020: £2,297,290) and its net outgoing resources were £18,079 (2020: incoming £348,145).

(b) Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. The trustees consider that the Covid19 pandemic will not have a significant impact on the charity’s core funding from its members as past experience has shown this has remains fairly constant regardless of financial conditions. Income from trading activities is expected to reduce due to the lockdown conditions and steps are being taken to make cost savings. The trustees regard any impact to be short term rather than affecting the charity’s ability to continue as a going concern. There are no material uncertainties affecting the current period’s accounts.

(c) Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met. The amounts can be measured reliably, and it is probable that income will be received.

(d) Donations

Donations received are recognised in the statement of financial activities when received together with any related tax credits.

(e) Bookshop

Turnover from the bookshop is recognised when entitled to receipt although most income is received from cash sales recognised at time of sale.

14

CLARENDON TRUST LIMITED

Notes to the Financial Statements for the period ended 31 August 2021

(f) Resources expended

Expenditure is allocated between cost of generating funds, charitable expenditure, support costs and the cost of management and administration of the charitable company on an accruals basis. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. Overhead and Support costs have been allocated to charitable activities. Staff costs are apportioned on the basis of actual time spent.

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office and governance costs. They are incurred directly in support of expenditure on the objects of the charity.

Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees.

(g) Fixed assets and depreciation

Freehold property and fixtures, fittings and office equipment are capitalised at their historic cost and stated at cost less depreciation. Freehold buildings are depreciated to write down the cost less estimated residual value over their remaining useful life by equal annual instalments. No depreciation is charged on freehold land.

Depreciation is taken in full in the first period and calculated to write off the cost less estimated residual value on a written down basis over their estimated useful lives. The rates are:

Freehold Property 2% Fixtures, Fittings and Office Equipment 20% Motor Vehicles 30%

(h) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost.

(i) 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.

(j) Voluntary assistance

A certain amount of time is expended on the charitable company's activities which is donated free of charge. It is not possible to quantify the value of the time given, and accordingly it is neither recorded as donated income nor as an expense in the financial statements.

15

CLARENDON TRUST LIMITED

Notes to the Financial Statements for the period ended 31 August 2021

(k) Leases

Equipment acquired under finance leases are capitalised in the balance sheet at an amount representing the capital element of the related rental payments. The interest element of these obligations is charged to the Statement of Financial Activities over the relevant period. The capital element of the future payments is treated as a liability. The equipment is depreciated over the shorter of the lease term and its expected useful life of the asset.

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

(l) Stock

Stock is stated at the lower of cost and net realisable value. Cost is calculated using the firstin-first-out method and consists of the direct cost of books, compact discs and tapes. Net realisable value is calculated on the basis of estimated selling price less all expected costs to be incurred in selling.

(m) Taxation

The company is a charity within the meaning of Para 1 Schedule 6 Finance Act 2010. Accordingly the company is potentially exempt from taxation in respect of income or capital gains within categories covered by Chapter 3 of Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

No tax charge arose in the period.

(n) Pensions

The charitable company contributes to defined contribution pension schemes. The charge to the Consolidated Statement of Financial Activities for 2021 was £56,218 (2020: £94,004).

(o) Fund accounting

An explanation of the nature and purpose of each fund is included in the notes to the financial statements. Funds held by the charity are either:

Unrestricted general funds - these are funds which can be used in accordance with the charitable objects at the discretion of the trustees.

Designated funds - these are funds set aside by the trustees out of unrestricted general funds for specific future purposes or projects.

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

16

CLARENDON TRUST LIMITED

Notes to the Financial Statements for the period ended 31 August 2021

2 VOLUNTARY INCOME
2021 2020
£ £
Donations and other funding 1,271,390 2,167,544
Restricted donations and grants 35,126 79,010
─────── ───────
1,306,516 2,246,554
═══════ ═══════
3 TOTAL RESOURCES EXPENDED
Staff
Other		 Total
Total
Depreciation Costs
Costs		 2021
2020
£ £
£		 £
£
Conference costs - 13,520
10,769		 24,289
72,787
Café and Bookshop costs - -
-		 -
6,119
Fundraising and publicity - 6,760
1,102		 7,862
12,294
Pastoral costs 92,951 473,210
339,841		 906,003
1,194,826
Mission Support costs 13,615 209,255
154,452		 377,321
677,869
Housing and Work Support - 35,768
46,925		 82,693
119,193
Trading Subsidiary Expenditure
-		 4,399
3,638		 8,037
224,140
────── ──────
──────		 ──────
──────
106,566 742,912
556,726		 1,406,205
2,307,227
══════ ══════
══════		 ══════
══════
The amounts paid to auditors comprised:
2021 2020
£ £
Audit fees 11,295 10,230
Other services 3,071 4,001
─────── ───────
14,366 14,231
═══════ ═══════

The following grants were made in 2021:

17

CLARENDON TRUST LIMITED

Notes to the Financial Statements for the period ended 31 August 2021

4 TRUSTEES

In accordance with the charitable company’s Memorandum and Articles of Association, the following trustees received a salary from the charitable company during the period:

Salary Pension
K Ball £4,611 (2020 – £6,667) £323 (2020 – £467)
S J Horne £32,190 (2020 – £49,721) £3,863 (2020 – £5,338)
N Jones £32,190 (2020 – £49,721) £4,829 (2020 – £7,391)

All Pension contributions were paid under a defined contribution scheme.

In addition, remuneration was paid to one related party amounting to £3,277 (2020: 10,319) as permitted by the constitution.

The related parties are:

There were no reimbursed expenses paid to trustees (2020: nil).

5 STAFF COSTS

Group 2021 2020
£ £
Gross salaries 625,487 1,159,036
Social security costs 61,208 105,237
Pension costs 56,218 94,004
────── ──────
742,912 1,358,277
══════ ══════

Total paid to key management personnel was £195,677 (2020: £299,187).

The average number of persons employed by the group during the period was as follows:

2021 2020
Number Number
Pastoral and Mission Support 19 19
Buildings/Lettings 3 9
Housing and Work Support 2 2
Support and administration 6 6
── ──
30 36
══ ══

No employees had emoluments in excess of £60,000: nil (2020: nil).

18

CLARENDON TRUST LIMITED

Notes to the Financial Statements for the period ended 31 August 2021

6 TANGIBLE FIXED ASSETS
Fixtures,
fittings
Freehold and office
property equipment Total
£ £ £
COST
Parent Company
At 1 January 2021 3,112,637 1,316,252 4,428,889
Additions - - -
─────── ────── ───────
At 31 August 2021 3,112,637 1,316,252 4,428,889
═══════ ══════ ═══════
Subsidiary at 1 January 2021 - - -
Additions - - -
─────── ────── ───────
Subsidiary at 31 August 2021 - - -
─────── ────── ───────
Group at 31 August 2021 3,112,637 1,316,252 4,428,889
═══════ ══════ ═══════
ACCUMULATED DEPRECIATION
Parent Company
At 1 January 2021 1,487,640 1,125,544 2,613,184
Charge for the period 52,107 54,459 106,566
Disposals - - -
────── ────── ───────
At 31 August 2021 1,539,747 1,180,003 2,719,750
══════ ══════ ═══════
Subsidiary
At 1 January 2021 - - -
Charge for the period - - -
─────── ─────── ───────
At 31 August 2021 - - -
─────── ─────── ───────
Group at 31 August 2021 1,539,747 1,180,003 2,719,750
═══════ ═══════ ═══════
NET BOOK VALUES
Parent Company at 31 August 2021 1,572,890 136,249 1,709,139
═══════ ══════ ═══════
Subsidiary at 31 August 2021 - - -
────── ────── ───────
Group at 31 August 2021 1,572,890 136,249 1,709,139
═══════ ══════ ═══════
At 31 December 2020 1,624,997 190,708 1,815,705
═══════ ══════ ═══════

19

CLARENDON TRUST LIMITED

Notes to the Financial Statements for the period ended 31 August 2021

7 STOCK
Group and parent company 2021 2020
£ £
Goods for resale - -
═════ ═════
8 DEBTORS
2021 2020 2021 2020
Group Group Charity Charity
£ £ £ £
DUE WITHIN ONE PERIOD
Other debtors 36,939 29,664 87,369 76,486
Prepayments and accrued income 81,692 74,524 81,222 69,389
────── ────── ────── ──────
118,631 104,188 168,592 145,874
══════ ══════ ═════ ═════

9 CREDITORS - AMOUNTS FALLING DUE WITHIN ONE PERIOD

2021 2020 2021 2020
Group Group Charity Charity
£ £ £ £
Taxation and social security (1,634) (1,856) (5,985) (4,065)
Accruals and deferred income 199,899 161,149 153,560 132,883
────── ────── ────── ──────
198,264 159,293 147,575 128,768
══════ ══════ ══════ ══════

20

CLARENDON TRUST LIMITED

Notes to the Financial Statements for the period ended 31 August 2021

10 UNRESTRICTED FUNDS

Balance at Balance at Movement in resources Movement in resources Movement in resources Balance at
Group and Charity 1 January 31 August
2021 Incoming Outgoing Transfers 2021
Designated fund £ £ £ £ £
Gift Day fund 127,559 182,667 (971)
(309,254)		 -
Maintenance fund 4,413 - - - 4,413
Berlin fund 228 - (228)
-		 -
Urban Impact fund 27,427 965 (9,693)
36,900		 55,599
Friends First Fund - - - 29,000 29,000
Emmanuel Youth fund 1,542 11,500 (1,542)
-		 11,500
Intern fund 14,410 3,971 (3,601)
-		 14,780
Covid Care Fund 47,131 - (500)
(46,631)		 -
Alternatives fund 1,394 - (238)
-		 1,156
Contingency fund 193,909 4,493 (166,489)
23,500		 55,414
Pastoral Needs fund 529 1,000 (3,443)
10,631		 8,718
Newday Offering fund 76,159 25 - (33,820) 42,364
Krakow fund 16,872 700 (16,275)
40,000		 41,297
Belfast fund 18,404 10,738 (30,424)
40,000		 38,717
Bath fund 16,338 - (20,019)
40,000		 36,319
Sphere Contingency & Opportunities
-		 - - 69,064 69,064
Shoreham Site fund 4,137 - (1,000)
-		 3,137
East Site fund 9,201 - - - 9,201
Oasis Building fund 485,100 - (9,900)
-		 475,200
General fund 395,334 1,077,920 (979,943)
33,820		 527,131
────── ────── ─────── ────── ──────
1,440,088 1,293,979 (1,244,266)
(66,790)		 1,423,010
══════ ══════ ═══════ ═════ ══════
Balance at Movement in resources Balance at
Group and Charity 1 January 31 December
2020 Incoming Outgoing Transfers 2020
Designated fund £ £ £ £ £
Gift Day fund 468,809 302,703 (47,851)
(596,102)		 127,558
Maintenance fund - 30,228 (56,815)
31,000		 4,413
Berlin fund 3,478 - (11,750)
8,500		 228
Urban Impact fund 17,867 10,000 (1,701)
1,260		 27,427
Emmanuel Youth fund 1,542 - - - 1,542
Intern fund 8,940 10,501 (5,031)
-		 14,410
Covid Care Fund - 6,181 (1,250)
42,201		 47,131
Alternatives fund 800 1,432 (4,337)
3,500		 1,394
Contingency fund 195,677 152,841 (21,375)
(133,234)		 193,909
Pastoral Needs fund 1,341 - (811)
-		 529
Newday Offering fund 87,274 21,260 (27,750)
(4,625)		 76,159
Krakow fund 25,295 4,803 (27,226)
14,000		 16,872
Belfast fund 4,352 15,089 (32,663)
31,625		 18,404
Bath fund - 6,500 (162)
10,000		 16,338
New England Site fund 55 700 (755)
-		 -
Shoreham Site fund 4,137 - - - 4,137
East Site fund 15,287 450 (6,537)
-		 9,201
Oasis Building fund - - (9,900)
495,000		 485,100
General fund 322,024 1,929,300 (1,867,991)
12,000		 395,334
────── ────── ─────── ────── ──────
1,156,878 2,491,988 (2,123,904)
(84,875)		 1,440,087
══════ ══════ ═══════ ═════ ══════

21

CLARENDON TRUST LIMITED

Notes to the Financial Statements for the period ended 31 August 2021

The Gift Day fund is the balance of monies raised through three Gift Days/giving campaigns during the period and allocated but not yet spent.

The Maintenance fund has been established for the continuing investment into Emmanuel’s fixed assets.

The Berlin fund has been established to for Emmanuel’s work in supporting church planting in Berlin.

The Urban Impact fund represents funds relating to various social engagement projects and ministries.

The Friends First fund represents funds set aside for the ongoing support of the work of the Friends First subsidiary

The Emmanuel Youth fund has been established to provide assistance to special related projects.

The Intern fund allows for funds to be set aside to provide contributions for those who are part of the Impact training course.

The Covid Care fund has been established in response to the global pandemic to provide assistance to people in need and support related projects.

The Alternatives fund represents Emmanuel’s contribution to the pregnancy advisory service Harbour Counselling.

The Contingency fund was set aside from the surpluses of Gift Day funds to meet the costs of any items that fit into the aims of gift days but which arose on a more ad hoc basis.

The Pastoral Needs fund was established to assist people in financial difficulty.

The Newday Offering fund represents donations taken up at the annual Newday youth event and are designated for the furtherance of the mission of the event.

The Krakow fund represents donations for supporting a specific church plant.

The Belfast fund represents donations for supporting a specific church plant.

The Bath fund represents donations for supporting a specific church plant.

The Sphere Contingency & Opportunities fund represents donations for supporting future opportunities for church planting and other projects related to Emmanuel’s growing partnership with other churches.

The Shoreham Site fund represents donations for projects relating to the site.

The East Site fund represents donations for projects relating to the site.

The Oasis Building fund is represented by the building of the Oasis.

22

CLARENDON TRUST LIMITED

Notes to the Financial Statements for the period ended 31 August 2021

11 RESTRICTED FUNDS

Balance at Movement in resources Movement in resources Movement in resources Balance at
Group 1 January 31 August
2021 Incoming Outgoing Transfers 2021
£ £ £ £ £
Building fund 1,139,897 - (42,207)
-		 1,097,690
BSL course 13 - (13)
-		 -
Ottawa fund 10,181 569 (5,599)
-		 5,151
────── ───── ──────
─────		 ──────
Charity sub total 1,150,091 569 (47,819)
-		 1,102,841
────── ───── ────── ───── ──────
Oaks Trust 70,217 34,557 (31,426)
4,790		 78,138
Friends First 28,767 28,833 (82,693)
62,000		 36,907
────── ───── ────── ───── ──────
1,249,075 63,959 (161,938)
66,790		 1,217,886
═══════ ═════ ══════ ═════ ═══════
Balance at Movement in resources Movement in resources Movement in resources Balance at
Group 1 January 31 December
2020 Incoming Outgoing Transfers 2020
£ £ £ £ £
Building fund 1,182,104 - (42,207)
-		 1,139,897
BSL course 373 - (360)
-		 13
Ottawa fund 16,010 985 (6,813)
-		 10,181
────── ───── ──────
─────		 ──────
Charity sub total 1,198,486 985 (49,380)
-		 1,150,091
────── ───── ────── ───── ──────
Oaks Trust 7,202 78,025 (14,750)
(260)		 70,217
Friends First 26,464 36,360 (119,193)
85,135		 28,767
────── ───── ────── ───── ──────
1,232,153 115,370 (183,323)
84,875		 1,249,075
═══════ ═════ ══════ ═════ ═══════

23

CLARENDON TRUST LIMITED

Notes to the Financial Statements for the period ended 31 August 2021

The Building fund is represented by the building and the establishment of the Clarendon Centre.

The BSL course represents contributions and donations relating to the Emmanuel deaf ministry.

The Ottawa fund donations for supporting a specific church plant.

Oaks Trust is a subsidiary charity focusing on social engagement which currently covers the activities of the Shoreham, Hove and Clarendon Centre Foodbanks.

Friends First is a subsidiary charity focusing on housing support and work training for the socially marginalised and homeless.

24

CLARENDON TRUST LIMITED

Notes to the Financial Statements for the period ended 31 August 2021

12 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Tangible
Group fixed Net current Long term
assets assets liabilities Total
£ £ £ £
Restricted funds
Building fund 1,097,690 - - 1,097,690
Ottawa fund - 5,151 - 5,151
─────── ─────── ─────── ───────
Charity sub total 1,097,690 5,151 - 1,102,841
─────── ─────── ─────── ───────
Subsidiaries
Oaks Trust - 78,138 - 78,138
Friends First - 36,907 - 36,907
─────── ────── ────── ──────
Unrestricted funds
General funds 136,249 390,881 - 527,131
Designated funds 475,200 420,679 - 895,879
─────── ────── ────── ───────
1,709,139 931,756 - 2,640,896
═══════ ══════ ══════ ═══════

13 COMMITMENT

At 31 August 2021, the group was committed to making the following payment under a noncancellable operating lease in the period to 31 August 2021:

2021 2020
£ £
Total future minimum lease commitment £1,007 £2,686
════ ════

25

CLARENDON TRUST LIMITED

Notes to the Financial Statements for the period ended 31 August 2021

14 SUBSIDIARIES

During 2003, the activities of the Housing and Work Support were taken over by Friends First (Company number: 4402061, Charity number: 1094827), a subsidiary under the control of Clarendon Trust Limited. The net surplus funds of this subsidiary at 31 August 2021 were £36,907 (2020: 28,767). During the period ended 31 August 2021, Friends First generated incoming resources of £28,833, received £62,000 in transfers from Clarendon Trust and expended resources of £82,693.

During 2014, the activities of the Foodbank were transferred to Oaks Trust (Company number: 8286100, Charity number: 1150372), a subsidiary under the control of Clarendon Trust Limited. The net surplus funds of this subsidiary at 31 August 2021 were £78,138 (2020: £70,217). During the period ended 31 August 2021, Oaks Trust generated incoming resources of £34,557, received £4,790 from Clarendon Trust and expended resources of £31,426.

During 2019, the lettings and café activities were transferred to Clarendon Enterprise Trading Ltd (Company number: 11973917). The net deficit of this subsidiary at 31 August 2021 was £61,015 (2020: £70,035). During the period ended 31 August 2021, Clarendon Enterprise Trading Ltd generated incoming resources of £17,057 and expended resources of £8,037.

The registered offices for both charities is 21-23 Clarendon Villas, Hove, East Sussex, BN3 3RE.

15 RELATED PARTY TRANSACTIONS

The charity has taken advantage of the exemption conferred by Financial Reporting Standard No. 8 “Related Party Transactions” not to disclose transactions with undertakings in which 100% or more of the voting rights are controlled by Clarendon Trust Limited. These undertakings results have been included within the consolidated financial statements of Clarendon Trust Limited. Details of other related party transactions are included in note 4.

26