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← Clarendon Trust Limited

2024-08-31-accounts

Docusign Envelope ID: 88842AF5-6548-4A36-9BAA-66F2C17BAB7A

Company number 3546759 Charity number 1069942

Clarendon Trust Limited

Group Report and Financial Statements

Year ended 31 August 2024

Docusign Envelope ID: 88842AF5-6548-4A36-9BAA-66F2C17BAB7A

CLARENDON TRUST LIMITED

Financial Statements - 31 August 2024

CONTENTS

Page
Trustees' Report 1-6
Independent Auditors' Report 7-10
Consolidated Statement of Financial Activities 11
Balance Sheet (Group and Charity) 12
Consolidated Cash Flow Statement 13
Notes to the Financial Statements 14 -26

Docusign Envelope ID: 88842AF5-6548-4A36-9BAA-66F2C17BAB7A

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 year, (unless otherwise shown), and at the date the report is signed were:

K Ball (resigned on 31[st] December 2023) A Bateman (appointed on 11[th] June 2024) W Bigwood N de Freese (appointed on 20[th] February 2024) J Foreman (resigned on 7[th] November 2023) P Jarvis (resigned on 14[th] May 2024) A Knight M Sibanda J Waller (appointed on 14[th] May 2024) D Wilson (appointed on 19[th] March 2024)

The senior staff of the charity throughout the year were: Matt Carvel Annie Waller Neville Jones Matt Simmonds Stephen Dawson

Company Secretary A Waller

The company’s advisors are:

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

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CLARENDON TRUST LIMITED

Trustees’ Report – continued

The trustees present their report and the financial statements for the year ended 31 August 2024. The financial statements have been prepared in accordance with the accounting policies set out on pages 13 to 15 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 year 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. Clarendon Enterprise Trading (CET), operated for the purpose of raising funds for the benefit of Clarendon Trust through the hiring of rooms for conferences, meetings, weddings, parties, etc. The CET directors are Neville Jones, Nils de Freese and Kate Ball.

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 years. 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

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CLARENDON TRUST LIMITED

Trustees’ Report – continued

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 year. 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.

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 45 years 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 membership care

The focus of the last financial year has continued to be one of stabilisation of the organisation following some staff restructuring. All 5 services have been maintained and started to show signs of numerical growth. Together with this, we have continued to provide the online provision created to allow for those who are unable to come to view the Sunday service in-person, as well as providing a window into the church for those wanting to know more about Emmanuel. We have continued to engage volunteers in all areas of ministry, and further developing our plan for members to connect in small groups outside of the Sunday setting.

2. Church planting

Emmanuel is continuing to actively support a number of churches and church plants in the UK and Continental Europe. This involves cities such as London, Bath, Belfast, Berlin, Amsterdam and Krakow. In 2023-24 we continued to financially support, by means of grants, the church plants in London, Belfast and Krakow. 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. Newday

In our final year of oversight of Newday, the event and activities were transferred to a newly established independent charity in December 2023.

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CLARENDON TRUST LIMITED

Trustees’ Report – continued

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 oversees the activities of foodbanks in each of our locations. Over the last year there has been 28% more referrals and requests made to foodbanks across the UK as well as free school meal provision rising by 13% in 2023. Oaks Trust has tried to meet this need by continuing to provide emergency food and a space for social workers to bring clients and chat whilst they wait to receive their food parcels, as well as an opportunity for people to access debt support services.

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. The charity also has access to counselling referral and regularly work alongside and signpost to other likeminded agencies in the city.

FINANCIAL REVIEW

The accounts on pages 10 to 24 comply with statutory requirements of the Memorandum and Articles of Association.

The Consolidated Statement of Financial Activities on page 10 shows total net outgoing resources of £194,746 (2022/23: £135,529 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 year was satisfactory. There was a balance of £1,523,993 (2023: £1,702,041) on the unrestricted funds at the year 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. The results of Friends First and Oaks Trust are included within restricted funds. The result of Clarendon Enterprise Trading is included within unrestricted funds. The charitable company is dependent upon the continued receipt of donated income as its main source of income. This is complemented by trading income, receipts from conferences and contributions from other churches. At the year 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.

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CLARENDON TRUST LIMITED

Trustees’ Report – continued

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 year 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 2024, free reserves were £624,726.

The charity has a number of designated and restricted funds, details of which are given in notes 12 and 13 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.

PLANS FOR FUTURE YEARS

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 year 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.

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 year 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 year.

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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 25[th] March 2025 and signed on their behalf by

William Bigwood Chair of Trustees

21/23 Clarendon Villas Hove East Sussex BN3 3RE

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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 year ended 31 August 2024 which comprise the Group Statement of Financial Activities, the Group and Parent company Balance Sheet, the Group and parent company cashflows 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 year 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.

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

Opinion on other matters prescribed by the Companies Act 2006

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 pages 5 and 6, 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:

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

Based on our understanding of the charity and its activities, and through discussion with the trustees and management, we identified the principal risks of material misstatement both at the financial statement level and at the assertion level. We considered these risks in the light of various factors including the level of complexity, subjectivity, uncertainty, potential management bias, fraud, materiality and any other relevant factors. We considered the extent to which these would have a material impact on the financial statements and designed our audit work accordingly. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, our procedures included the following:

In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates were indicative of a potential bias and tested significant transactions that were unusual or those outside the normal course of business.

We also

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

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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.

Shona Wardrop C.A. Chariot House Limited Chartered Accountants 44 Grand Parade Brighton East Sussex BN2 9QA

Date: 25[th] March 2025

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Docusign Envelope ID: 88842AF5-6548-4A36-9BAA-66F2C17BAB7A

CLARENDON TRUST LIMITED

Consolidated Statement of Financial Activities (including income and expenditure account) for the year ended 31 August 2024

Unrestricted Restricted Total funds Total funds
Notes funds funds 2024 2023
INCOME FROM
£ £ £ £
Donations and legacies 2 2,035,691 126,271 2,161,962 2,355,555
Charitable Activities
Housing and Work Support - 59,410 59,410 52,096
Conferences and other events 31,918 - 31,918 972,546
Investments 17,974 - 17,974 12,917
Trading Subsidiary 64,272 - 64,272 257,349
─────── ────── ─────── ───────
Total income 2,149,855 185,681 2,335,536 3,650,463
─────── ────── ─────── ───────
EXPENDITURE ON
Raising Funds 26,622 - 26,622 27,584
Trading Subsidiary 19,166 - 19,166 63,485
Charitable activities
Conference costs 115,587 - 115,587 903,649
Pastoral costs 1,263,446 190,857 1,454,303 1,431,820
Mission support costs 780,999 - 780,999 966,899
Housing and Work Support - 133,605 133,605 121,648
─────── ────── ─────── ───────
Total expenditure 3 2,205,820 324,462 2,530,282 3,515,085
─────── ────── ─────── ───────
Net income (expenditure) (55,965) (138,781) (194,746) 135,529
Transfers between funds 12/ (122,083) 122,083 - -
13
─────── ────── ────── ──────
Net movement in funds (178,048) (16,698) (194,746) 135,529
Fund balances brought forward at
1 September 2023 1,702,041 1,119,277 2,821,318 2,685,789
─────── ─────── ─────── ───────
Fund balances carried forward
at 31 August 2024 12 1,523,993 1,102,580 2,626,573 2,821,318
═══════ ═══════ ═══════ ═══════

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

The notes on pages 13 to 25 form part of these financial statements.

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Docusign Envelope ID: 88842AF5-6548-4A36-9BAA-66F2C17BAB7A

Company number 3546759

CLARENDON TRUST LIMITED

Balance Sheet (Group and Charity) at 31 August 2024

Notes Notes 2024 2023 2024 2023
Group Group Charity Charity
£ £ £ £
FIXED ASSETS
Tangible assets 6 1,468,417 1,533,486 1,468,417 1,533,486
CURRENT ASSETS
Debtors 7 39,938 93,813 37,516 90,640
Cash at bank and in hand 1,399,503 1,625,407 1,197,893 1,292,111
─────── ─────── ─────── ───────
1,439,441 1,719,220 1,235,409 1,382,751
CREDITORS - AMOUNTS
FALLING DUE WITHIN ONE YEAR 8 (70,286) (209,278) (43,694) (173,277)
─────── ─────── ─────── ───────
NET CURRENT ASSETS 1,369,155 1,509,943 1,191,715 1,209,474
─────── ─────── ─────── ───────
CREDITORS - AMOUNTS
FALLING DUE AFTER ONE YEAR 9 (210,999) (222,111) (210,999) (222,111)
─────── ─────── ─────── ───────
TOTAL ASSETS LESS CURRENT
LIABILITIES AND NET ASSETS 2,626,573 2,821,318 2,449,133 2,520,849
════════ ════════ ════════ ════════
FUNDS
Unrestricted funds
General funds 12 676,574 721,324 630,442 526,435
Designated funds 12 847,419 980,716 847,419 980,716
Restricted funds 13 1,102,580 1,119,277 971,272 1,013,698
──────── ──────── ──────── ────────
TOTAL FUNDS 14 2,626,573 2,821,318 2,449,133 2,520,849
════════ ════════ ════════ ════════

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 25[th] March 2025.

William Bigwood (Chair of trustees)

The notes on pages 13 to 25 form part of these financial statements.

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Docusign Envelope ID: 88842AF5-6548-4A36-9BAA-66F2C17BAB7A

CLARENDON TRUST LIMITED

Consolidated Cash Flow Statement for the year ended 31 August 2024

2024 2023
Reconciliation of net movement in funds £ £ £ £
to net cash flows from operating activities
Net movement in funds (194,746) 135,329
Investment income (17,974) (12,917)
Depreciation 65,069 68,309
Decrease in stock - -
(Increase)/Decrease in debtors 53,876 (2,291)
Increase/(decrease) in creditors (139,427) (108,858)
────── ──────
Net cash inflow (outflow) from operating (233,202) 79,772
activities
Returns on investments and servicing of
finance
New Loan in the year - -
Loan Repayments in the year (10,676) (11,729)
Investment income received 17,974 12,917
────── ──────
Net cash inflow from returns on 7,298 1,188
investments and servicing of finance
Capital expenditure
Purchase of tangible fixed assets - -
Disposal of tangible fixed assets - -
────── ──────
Net cash outflow from capital expenditure - -
────── ──────
Increase/(decrease) in cash in the year (225,904) 80,690
══════ ══════
Reconciliation of net cash flow to
movement in net cash funds
Net funds at beginning of the year 1,625,407 1,544,447
Change in net funds during the year (225,904) 80,690
────── ──────
Net funds at end of the year 1,399,503 1,625,407
══════ ══════

The notes on pages 13 to 25 form part of these financial statements.

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Docusign Envelope ID: 88842AF5-6548-4A36-9BAA-66F2C17BAB7A

CLARENDON TRUST LIMITED

Notes to the Financial Statements for the year ended 31 August 2024

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.

The financial statements are prepared in sterling, which is the functional currency of the entity and are rounded to the nearest pound.

(a) Basis of preparation

Consolidated accounts have been prepared which consolidate the results of Clarendon Trust Limited, Clarendon Enterprise Trading, 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 £2,085,582 (2022/23: £3,251,079) and its net outgoing resources were £143,499 (2022/23: incoming £41,789).

(b) Going concern

In view of the Trusts level of reserves, the directors are of the opinion that there are no material uncertainties in relation to its ability to continue operating and as such the accounts have been prepared on a going concern basis. The directors have taken into consideration a period of 12 months from the date of signing of the accounts.

(c) Incoming resources

Income is recognised when: a) the charity has entitlement to the funds; b) any performance conditions attached to the items of income have been met; c) it is probable that the income will be received; d) the amount can be measured reliably.

(d) Donations

Donations are accounted for as received. In the event that a donation is subject to fulfilling performance conditions before the charity is entitled to the funds, the income is deferred until either those conditions are met in full, or their fulfilment is wholly within the control of the charity and it is probable that those conditions will be fulfilled by the reporting period.

(e) legacy income

The charity recognises residuary legacy income at the earlier date of receipt or when the executors have determined that a payment can be made following the agreement of the estate’s accounts, or on notification by the executors that payment will be made. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

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Docusign Envelope ID: 88842AF5-6548-4A36-9BAA-66F2C17BAB7A

CLARENDON TRUST LIMITED

Notes to the Financial Statements for the year ended 31 August 2024

(f) Grant income; Income from charitable activities

Income from charitable activities includes income received under contract or where entitlement to grant funding is subject to specific conditions and is recognised as earned. Grant funding included in this category provides funding to support activities and is recognised where there is entitlement, probability of receipt, and the amount can be measured with sufficient reliability.

(g) Earned and other income

Income from the café and other trading activities are recognised as earned. Income from events is only recognised in the year and period the event takes place. Until such time that the event takes place any such income is deferred to future periods. Other incoming resources comprises one off and irregular income recognised using the same criteria for voluntary income.

(h) 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.

(i) Fixed assets and depreciation

Freehold property and fixtures, fittings and office equipment are capitalised at their historic cost (capitalisation threshold is £10k) 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. Fixtures, fittings and office equipment are depreciated on a reducing balance basis.

Depreciation is taken in full in the first year 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%

15

Docusign Envelope ID: 88842AF5-6548-4A36-9BAA-66F2C17BAB7A

CLARENDON TRUST LIMITED

Notes to the Financial Statements for the year ended 31 August 2024

(j) 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.

(k) 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.

(l) 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.

(m) 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 year. 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.

(n) 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 year.

(o) Pensions

The charitable company contributes to defined contribution pension schemes. The charge to the Consolidated Statement of Financial Activities for 2023/24 was £87,096 (2022/23: £89,987).

(p) Value Added Tax

The Trust has registered with a Group VAT arrangement covering both the charity and the subsidiary trading company. Irrecoverable VAT is included in resources expended in the Statement of Financial Activities.

16

Docusign Envelope ID: 88842AF5-6548-4A36-9BAA-66F2C17BAB7A

CLARENDON TRUST LIMITED

Notes to the Financial Statements for the year ended 31 August 2024

(q) Investment in Subsidiary

The investment in the trading subsidiary is measured at cost less any impairment. The charitable subsidiaries, Friends First and Oak Trust, are limited by guarantee but treated as subsidiaries due to the level of control exercised by the Clarendon Trust.

(r) 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.

17

Docusign Envelope ID: 88842AF5-6548-4A36-9BAA-66F2C17BAB7A

CLARENDON TRUST LIMITED

Notes to the Financial Statements for the year ended 31 August 2024

2 VOLUNTARY INCOME
2024 2023
£ £
Donations and other funding 2,035,691 2,265,466
Restricted donations and grants 126,271 90,089
─────── ───────
2,161,962 2,355,555
═══════ ═══════
3 TOTAL RESOURCES EXPENDED
Staff Other Total Total
Depreciation Costs Costs 2024 2023
£ £ £ £ £
Conference costs 2,592 31,799 81,196 115,587 903,649
Fundraising and publicity - 21,120 5,422 26,622 27,584
Pastoral costs 59,236 771,439 623,628 1,454,303 1,431,820
Mission Support costs 3,241 326,250 451,508 780,999 966,899
Housing and Work Support - 58,791 74,814 133,605 121,648
Trading Subsidiary Expenditure - - 19,166 19,166 63,485
────── ────── ────── ────── ──────
65,069 1,209,479 1,255,734 2,530,282 3,515,085
══════ ══════ ══════ ══════ ══════
The amounts paid to auditors comprised:
2024 2023
£ £
Audit fees 13,580 13,170
Other services 3,414 3,780
─────── ───────
16,994 16,950
═══════ ═══════

The following grants were made in 2023/24:

18

Docusign Envelope ID: 88842AF5-6548-4A36-9BAA-66F2C17BAB7A

CLARENDON TRUST LIMITED

Notes to the Financial Statements for the year ended 31 August 2024

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 year:

Salary Pension
K Ball £32,664 (2022/23 – £29,690) £2,286 (2022/23 – £2,078)
N de Freese £6,847 (2022/23 – n/a) £685 (2022/23 – n/a)

All Pension contributions were paid under a defined contribution scheme.

In addition, remuneration was paid to three related parties amounting to £19,783 (2022/23: £5,446) as permitted by the constitution. The related parties are:

There were no reimbursed expenses paid to trustees (2022/23: nil).

5 STAFF COSTS

Group 2024 2023
£ £
Gross salaries 1,032,674 1,112,032
Social security costs 89,709 97,374
Pension costs 87,096 89,987
────── ──────
1,209,479 1,299,394
══════ ══════

Total paid to key management personnel consisting of the senior leadership team of the church was £267,515 (2022/23: £311,428).

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

2024 2023
Number Number
Pastoral and Mission Support 17 17
Buildings/Lettings 4 4
Housing and Work Support 2 2
Support and administration 6 6
── ──
29 29
══ ══

Two employees had emoluments in excess of £60,000 but less than £70,000: nil (2022/23: nil).

19

Docusign Envelope ID: 88842AF5-6548-4A36-9BAA-66F2C17BAB7A

CLARENDON TRUST LIMITED

Notes to the Financial Statements for the year ended 31 August 2024

6 TANGIBLE FIXED ASSETS

ANGIBLE FIXED ASSETS
Fixtures,
fittings
Freehold and office
property equipment Total
£ £ £
COST
Parent Company
At 1 September 2023 3,112,637 554,950 3,667,587
Disposals - - -
─────── ────── ───────
At 31 August 2024 3,112,637 554,950 3,667,587
═══════ ══════ ═══════
Subsidiary at 1 September 2023 - - -
Additions - - -
─────── ────── ───────
Subsidiary at 31 August 2024 - - -
─────── ────── ───────
Group at 31 August 2024 3,112,637 554,950 3,667,587
═══════ ══════ ═══════
ACCUMULATED DEPRECIATION
Parent Company
At 1 September 2023 1,643,961 490,140 2,134,101
Charge for the year 52,107 12,962 65,069
Disposals - - -
────── ────── ───────
At 31 August 2024 1,696,068 503,102 2,199,170
══════ ══════ ═══════
Subsidiary
At 1 September 2023 - - -
Charge for the year - - -
─────── ─────── ───────
At 31 August 2024 - - -
─────── ─────── ───────
Group at 31 August 2024 1,643,961 490,140 2,134,101
═══════ ═══════ ═══════
NET BOOK VALUES
Parent Company at 31 August 2024 1,416,569 51,848 1,468,417
═══════ ══════ ═══════
Subsidiary at 31 August 2024 - - -
────── ────── ───────
Group at 31 August 2024 1,416,569 51,848 1,468,417
═══════ ══════ ═══════
At 31 August 2023 1,468,676 64,810 1,533,486
═══════ ══════ ═══════

A mortgage from Stewardship Services (UKET) Limited is secured by a fixed charge on the Oasis property on Hangleton Way, Hove, BN3 8EQ.

20

Docusign Envelope ID: 88842AF5-6548-4A36-9BAA-66F2C17BAB7A

CLARENDON TRUST LIMITED

Notes to the Financial Statements for the year ended 31 August 2024

7 DEBTORS

2024 2023 2024 2023
Group Group Charity Charity
£ £ £ £
DUE WITHIN ONE YEAR
Other debtors 38,607 92,988 36,857 90,640
Prepayments and accrued income 1,331 825 659 -
────── ────── ────── ──────
39,938 93,813 37,516 90,640
══════ ══════ ═════ ═════

8 CREDITORS - AMOUNTS FALLING DUE WITHIN ONE YEAR

2024 2023 2024 2023
Group Group Charity Charity
£ £ £ £
Taxation and social security (461) (49) (17,324) (16,362)
Bank loan 11,539 11,104 11,539 11,104
Accruals and deferred income 59,207 198,223 49,479 178,535
────── ────── ────── ──────
70,286 209,278 43,694 173,277
══════ ══════ ══════ ══════

9 CREDITORS - AMOUNTS FALLING DUE AFTER ONE YEAR

2024 2023 2024 2023
Group Group Charity Charity
£ £ £ £
Bank loan 210,999 222,111 210,999 222,111
────── ────── ────── ──────
210,999 222,111 210,999 222,111
══════ ══════ ══════ ══════

21

Docusign Envelope ID: 88842AF5-6548-4A36-9BAA-66F2C17BAB7A

CLARENDON TRUST LIMITED

Notes to the Financial Statements for the year ended 31 August 2024

10 LOANS

An analysis of the maturity of the loan is given below:

2024 2023
£ £
Amounts falling due with one year on demand
Mortgage 11,539 11,104
═════ ═════
Amounts falling due between one and two years
Mortgage – 1-2 years 12,377 11,858
═════ ═════
Amounts falling due between two and five years
Mortgage – 2-5 years 42,791 40,625
═════ ═════
Amounts falling due in more than five years
Mortgage 155,831 169,628
═════ ═════

11 SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£ £
Mortgage 222,539 233,214
═════ ═════

The charity has a mortgage loan with Stewardship Services (UKET) Limited of £222,539 (2023: £233,214). The loan is repayable over 13.5 years until 25 March 2037. The interest rate on the loan is currently 7.5%.

12 UNRESTRICTED FUNDS

Balance at Balance at Movement in resources Movement in resources Movement in resources Balance at
Group and Charity 1 September 31 August
2023 Incoming Outgoing Transfers 2024
Designated fund £ £ £ £ £
Gift Day funds 326,067 390,194 (43,135) (550,274) 122,853
Newday Offering fund 78,630 - (9,100) (69,530) -
Contingency fund 154,395 9,152 (62,642) 31,370 132,275
Social Action funds 66,324 3,046 (24,344) 2,917 47,943
Ministry funds 39,244 65,683 (121,258) 154,320 137,989
Church Planting funds 54,126 93,019 (175,961) 161,328 132,512
Sphere Contingency & Opportunities 39,744 9,296 (8,184) 10,029 50,886
Oasis Building fund 222,186 - (9,900) 10,676 222,961
General fund 721,325 1,579,466 (1,751,297) 127,080 676,574
────── ────── ─────── ────── ──────
1,702,041 2,149,855 (2,205,820) (122,083) 1,523,993
══════ ══════ ═══════ ═════ ══════

22

Docusign Envelope ID: 88842AF5-6548-4A36-9BAA-66F2C17BAB7A

CLARENDON TRUST LIMITED

Notes to the Financial Statements for the year ended 31 August 2024

Balance at Balance at Movement in resources Movement in resources Movement in resources Balance at
Group and Charity 1 September 31 August
2022 Incoming Outgoing Transfers 2023
Designated fund £ £ £ £ £
Gift Day funds 187,788 582,099 (25,266) (418,553) 326,067
Maintenance fund 4,413 - (4,413) - -
Newday Offering fund 65,393 13,237 - - 78,630
Contingency fund 242,138 50,000 (125,410) (12,332) 154,395
Social Action funds 77,122 4,582 (17,236) 2,022 66,324
Ministry funds 77,653 76,967 (255,715) 140,339 39,244
Church Planting funds 50,704 42,724 (133,776) 94,475 54,126
Sphere Contingency & Opportunities
50,369		 3,815 (45,512) 31,072 39,744
Oasis Building fund 220,356 - (9,900) 11,729 222,186
General fund 578,658 2,735,006 (2,610,610) 18,271 721,325
────── ────── ─────── ────── ──────
1,423,010 3,508,429 (3,228,005) (132,978) 1,702,041
══════ ══════ ═══════ ═════ ══════

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

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

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 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 Social Action funds represent funds relating to various social engagement projects and ministries including Christian Action Brighton, Friends First funds and Care for our City funds.

The Ministry funds represent funds relating to various activities to support church members including pastoral needs, youth funds, church conferences and events.

The Church Planting funds represent funds to support specific church plants in Krakow, Belfast and Bath.

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

23

Docusign Envelope ID: 88842AF5-6548-4A36-9BAA-66F2C17BAB7A

CLARENDON TRUST LIMITED

Notes to the Financial Statements for the year ended 31 August 2024

13 RESTRICTED FUNDS

Balance at Movement in resources Movement in resources Movement in resources Balance at
Group 1 September 31 August
2023 Incoming Outgoing Transfers 2024
£ £ £ £ £
Building fund 1,013,276 - (42,207) - 971,069
Ottawa fund 422 - (220) - 202
────── ───── ────── ───── ──────
Charity sub total 1,013,698 - (42,427) - 971,271
────── ───── ────── ───── ──────
Oaks Trust 49,702 126,271 (148,430) 52,832 80,376
Friends First 55,877 59,410 (133,605) 69,251 50,933
────── ───── ────── ───── ──────
1,119,277 185,681 (324,462) 122,083 1,102,580
═══════ ══════ ══════ ═════ ═══════
Balance at Movement in resources Movement in resources Movement in resources Balance at
Group 1 September 31 August
2022 Incoming Outgoing Transfers 2023
£ £ £ £ £
Building fund 1,055,483 - (42,207) - 1,013,276
Ottawa fund 2,986 - (2,546) - 422
────── ───── ────── ───── ──────
Charity sub total 1,058,469 - (44,771) - 1,013,698
────── ───── ────── ───── ──────
Oaks Trust 34,277 90,089 (120,661) 45,998 49,702
Friends First 38,449 52,096 (121,648) 86,980 55,877
────── ───── ────── ───── ──────
1,131,195 142,185 (287,080) 132,978 1,119,277
═══════ ══════ ══════ ═════ ═══════

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

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

Docusign Envelope ID: 88842AF5-6548-4A36-9BAA-66F2C17BAB7A

CLARENDON TRUST LIMITED

Notes to the Financial Statements for the year ended 31 August 2024

14 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Tangible
Group fixed Net current Long term
assets assets liabilities Total
£ £ £ £
Restricted funds
Building fund 971,069 - - 971,069
Ottawa fund - 202 - 202
────── ────── ────── ──────
Charity sub total 971,069 202 - 971,271
────── ────── ────── ──────
Subsidiaries
Oaks Trust - 80,376 - 80,376
Friends First - 50,933 - 50,933
────── ────── ────── ──────
971,069 131,511 - 1,102,580
────── ────── ────── ──────
Unrestricted funds
General funds 51,848 624,726 - 676,574
Designated funds 455,400 612,918 (210,999) 847,419
────── ────── ────── ──────
1,468,417 1,369,155 (210,999) 2,626,573
═══════ ══════ ══════ ═══════

15 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 2024 were £50,933 (2023: £55,877). During the year ended 31 August 2024, Friends First generated incoming resources of £59,410, received £69,251 in transfers from Clarendon Trust and expended resources of £133,605.

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 2024 were £80,376 (2023: £49,702). During the year ended 31 August 2024, Oaks Trust generated incoming resources of £126,271, received £52,832 from Clarendon Trust and expended resources of £148,430.

During 2019, the lettings and café activities were transferred to Clarendon Enterprise Trading Ltd (Company number: 11973917). The surplus of this subsidiary at 31 August 2024 was £45,107 (2023: £134,398) after making a donation in the year of £193,865. During the year ended 31 August 2024, Clarendon Enterprise Trading Ltd generated incoming resources of £62,893 and expended resources of £17,786.

The registered offices for all these companies is 21-23 Clarendon Villas, Hove, East Sussex, BN3 3RE.

25

Docusign Envelope ID: 88842AF5-6548-4A36-9BAA-66F2C17BAB7A

CLARENDON TRUST LIMITED

Notes to the Financial Statements for the year ended 31 August 2024

16 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