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2020-08-31-accounts

Charity number: 1143033 Company Number: 04295400

Clervaux Trust (A Company Limited by Guarantee)

Trustees’ report and financial statements For the year ended 31 August 2020

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CLERVAUX TRUST

CONTENTS

Page
Legal and administrative information 1
Report of the Trustees 2
Statement of Trustees’ Responsibilities 9
Independent Auditor’s report to the Trustees 11
Statement of Financial Activities 14
Balance Sheet 15
Cash Flow Statement 16
Notes to the FinancialStatements 17

CLERVAUX TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Registered office Ruskin Mill Millbottom Nailsworth Stroud Gloucestershire GL6 0LA

Principal office Clow Beck Centre Jolby Lane Darlington DL2 2TF

Trustees H M Kippax I K Clements C A Hindmarsh

Company Secretary E Johnson

Key Management Personnel Aonghus Gordon – Founder and Executive Chair Tara Gratton – Director of Schools and Rise Shazuli Iqbal – Trust Head of Finance Constantin Court – Director of PSTE Quality Assurance Lindsay Wilkinson – Trust Head of Human Resources

Auditors

Grant Thornton UK LLP The Colmore Building 20 Colmore Circus Birmingham B4 6AT

Bankers Lloyds Bank Plc 12 Rowcroft Stroud Gloucestershire GL5 3BD

Solicitors Royds Withy King LLP 69 Carter Lane London EC4V 5EQ

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CLERVAUX TRUST

REPORT OF THE TRUSTEES

The Trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year to 31 August 2020.

• Governing document

Clervaux Trust is a registered charity (registered no. 1143033) and a company limited by guarantee (registered no. 04295400), as defined by the Companies Act 2006. Its Governing Instrument is the Memorandum and Articles of Association dated 27 September 2001, as amended on 12 January 2011 and 7 March 2012.

STRUCTURE, GOVERNANCE AND MANAGEMENT

• Group Structure

Ruskin Mill Trust Ltd is the sole member of Clervaux Trust. Clervaux Trust is part of the Ruskin Mill Trust Group.

Clervaux Trust sub-leases from Ruskin Mill Land Trust (related party) land and farmland for the purposes of delivering therapeutic education and work experience services, principally through the Clervaux Rise programme, for young people and adults with special educational needs, both day and residential.

The registered office of Clervaux Trust is Ruskin Mill, Millbottom, Nailsworth, Stroud GL6 0LA and the principal office is Clow Beck Centre, Jolby Lane, Darlington DL2 2TF.

• Recruitment and appointment of new Trustees

The charity’s practice regarding recruitment has been for members of the Board to make recommendations for suitably skilled and experienced people who are then appraised by Ruskin Mill Trust’s Board of Trustees, which makes the final decision.

Induction and training are carried out during the meeting cycle, and members are also invited to training at Ruskin Mill Trust’s other centres. During the year, individual Trustees undertake a range of appropriate training.

• Organisational Management

The Trustees delegate the day-to-day running of the provision to a local management team who oversee operations and which reports to Ruskin Mill Trust’s Director of Schools and Rise. The key management personnel are listed on page 1. The Trustees did not receive any remuneration from Clervaux Trust in the current or previous period.

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CLERVAUX TRUST

• Directors and Trustees

The Trustees during the period are listed on page 1.

OBJECTS AND AIMS

• Objects

The charity’s Objects are:

To advance the education of the public in the subject of conservation, protection and restoration of the natural environment and the sustainable and rational use of natural resources with particular reference to the setting up or establishing either jointly or with others educational facilities for children and adults, including children and adults with learning difficulties, to include arts and crafts activities, woodland management and residential accommodation, with particular reference being given to the indications and insights of Rudolf Steiner in these areas.

• Aims

Clervaux offers day and residential care places in Darlington and the wider area to young people and adults with complex learning and behavioural difficulties, and it supports them in gaining training and further education. Daytime work and training is available in the rural setting of the Clow Beck Centre farm at Croft-on-Tees, which provides sessions in crafts and land work. In Darlington, there are opportunities for supported work placements at the Bishop’s House through the bakery and café. The residential provision, Clervaux Rise, is offered to those leaving full-time specialist education, those in need of additional independence training and adults benefitting from longer-term care and support.

• Public benefit

In carrying out its activities in the year under review, the Trustees confirm that they have complied with their duty under Section 17 of the Charities Act 2011 to have regard to the public benefit guidance issued by the Charity Commission for England and Wales.

STRATEGIC REPORT

• Achievements and Performance

The level of staffing at Clervaux has remained broadly the same for this period.

Clervaux continues to develop links with local authorities in the region, which will, it is hoped, result in further residential and day placements. The programme has been

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impacted by the pandemic and whilst still able to operate and provide services, there were challenges in recruiting new participants.

The staff team have worked tirelessly to ensure participants were able to continue with their programmes throughout the pandemic, using the outdoor learning spaces and restricting group sizes to keep individuals safe and socially distanced. The staff team and participants have also supported the new school, through sharing appropriate activities.

The building work on the Fold and associated buildings has been completed, and the Rise programme and adult care services have moved up the hill to access these buildings.

Clervaux Trust last had a CQC inspection in June 2018, and was rated Good throughout. The Trust had expected another CQC visit in 2020 but, because of the pandemic, all routine inspections were cancelled.

Over the year, the respective local authorities and other stakeholders have consistently praised the care and support provided by Clervaux for its day and residential service users.

• Financial Review

o Results

Trustees value the surplus of £34,931 made during the period to 31 August 2020 (2019: deficit £112,683). A significant percentage of Clervaux Trust’s total income £646,363 (2019: £712,674) comes from fees 77% (2019: 74%), and 1 7 % (2019: 21%) relates to other income, which includes café and farm sales.

o Fundraising

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CLERVAUX TRUST

fundraising activities conducted by the Ruskin Mill Trust.

o Reserves

The Trustees review the charity’s financial plans and results regularly throughout the year. This is done through monitoring income and expenditure against budget forecasts and monitoring cash flow.

The Trustees feel it prudent to build the level of reserves on an annual basis with the purpose of ensuring that the charity has sufficient reserves to act as a buffer against unexpected drops in income or increases in expenditure. The reserves currently held are restricted funds £40,671 (2019: £41,608) and unrestricted funds -£98,328 (2019: -£134,196).

• Risks and Uncertainties

The Trustees review the risks to which the charity is exposed such as the health and safety of service users, visitors, volunteers and staff on an on-going basis and are satisfied that systems are in place to manage exposure to the major risks. They maintain appropriate levels of insurance cover for all foreseeable risks.

The Covid-19 pandemic has had a limited impact on Clervaux Trust Limited. The Trust has been able to continue operating during this time due to the nature of the service that is provided.

Specific areas of risk and uncertainty are:

o Clervaux RISE

Clervaux Rise continues to be marketed but the recruitment of new clients has been hampered by the pandemic. The programme is still aiming for 12 clients for financial viability.

As Clervaux RISE is aimed at more complex users, in particular those who may need step-down care from secure units, the skills and experience of the team will need to grow to accommodate this. The Trust continues to be successful in engaging with multi-level support from social care and health teams in the community. In addition, training has been provided to provide the staff with the skills needed to work with the clients.

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CLERVAUX TRUST

o Clervaux Fold

The Fold is a non-standard Ruskin Mill Trust educational provision. The Business Plan has identified community groups that would benefit from this service and generate income streams and achieve financial viability.

o Poor Inspection result

The risk of Clervaux Trust receiving a poor grade following an inspection by the Care Quality Commission (CQC). This is being mitigated through a rigorous system of internal Quality Assurance, including use of a specialist external consultant and investment in staff training.

o Regulatory non-compliance

The risk of regulatory non-compliance requires constant review and the upskilling of staff and Trustees to meet an ever-changing regulatory landscape and student profile. Specifically:

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CLERVAUX TRUST

o Longevity and deployment of staffing

The craft tutors and land team have been deployed across RISE and the Fold. As the provision grows, there are concerns about meeting the diverse needs within Clervaux Trust’s current resources. The craft tutors are highly accomplished in their crafts and in their experience of engaging and teaching a range of students and residents with complex needs. However, two of the most experienced staff provide only part-time duties to Clervaux Trust and all three of the craft tutors are concerned about their longevity. Consequently, the charity is undertaking succession planning.

o IT disaster

The charity continues to monitor and improve IT cyber security arrangements to ensure a robustness and preparedness for any future attacks. Clervaux Trust benefits from technical and MIS services and support provided by Ruskin Mill Trust’s central services.

o Reputational Risk

The risk of reputational harm is being mitigated through the vigilance of the charity including implementing a Code of Conduct and ensuring staff are suitably supported and trained.

o Risks to Ruskin Mill Trust Group’s Method (Practical Skills Therapeutic Education)

Vigilance continues to be needed to ensure that the Ruskin Mill Trust Group’s educational method is not compromised.

• Future Plans

As referred to previously, as a key member of the Ruskin Mill Trust Group and, after a period of steady consolidation over several years, Clervaux Trust is now fastchanging as a result of a series of new initiatives that are building on the original capital.

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Clervaux Fold

The Fold continues to provide outreach and support services for families of servicemen and women who are connected to the nearby Catterick Barracks. The programme provides an opportunity for them to spend time as families away from the Barracks experiencing Clervaux’s farm and environment and gaining hands-on experience of some of the crafts that are used to deliver Practical Skills Therapeutic Education . The addition of the new buildings on the farm has provided much needed resources to this project and the plan is to be able to provide a wider range of educational activities engaging the local community (military and civilian). These activities will be offered five days a week with a focus on craft and land-based activities for young families and parents, and general wellbeing courses for exservice people.

Clervaux RISE

Clervaux RISE continues to provide both a day and residential service, offering opportunities for individuals (primarily adults) to engage in specialist skills development and work or training opportunities beyond formal education. This currently includes working in the Clervaux Café in Darlington, attending skills courses, and working with animals on the farm. With the addition of the new farm buildings, RISE participants will be able to take part in a Social Enterprise ensuring a ‘seed-to-table’ experience for the excellent Clervaux Café & Bakery and operating a successful vegetable box scheme. The aim is for the RISE programme to grow to 12 residents over the next 12 months, whilst continuing to develop the physical infrastructure of the site and landscape.

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CLERVAUX TRUST

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

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

Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, 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 and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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• Provision of information to Auditor

Each of the persons who are Trustees at the time when this Report of the Trustees is approved has confirmed that:

• Qualifying third party indemnity provisions

Directors’ indemnity insurance, indemnifying each director against liability to third parties, has been in place throughout the year ended 31 August 2020 and up to the date of approval of this report.

• Auditor

The auditor, Grant Thornton UK LLP, will be proposed for reappointment at the Annual General Meeting.

Approved by the Trustees on 15/02/2021 and signed on their behalf by:

I K Clements

Trustee

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CLERVAUX TRUST

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF CLERVAUX TRUST

Opinion

We have audited the financial statements of Clervaux Trust (the ‘charitable company’) for the year ended 31 August 2020, which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards including Financial Reporting Standard 102; The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We have been appointed as auditor under the Companies Act 2006 and report in accordance with regulations made under that Act. 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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

The impact of macro-economic uncertainties on our audit

Our audit of the financial statements requires us to obtain an understanding of all relevant uncertainties, including those arising as a consequence of the effects of macro-economic uncertainties such as Covid-19. All audits assess and challenge the reasonableness of estimates made by the trustees and the related disclosures and the appropriateness of the going concern basis of preparation of the financial statements. All of these depend on assessments of the future economic environment and the charitable company’s future prospects and performance.

Covid-19 is amongst the most significant economic events currently faced by the UK, and at the date of this report its effects are subject to unprecedented levels of uncertainty, with the full range of possible outcomes and their impacts unknown. We applied a standardised firm-wide approach in response to these uncertainties when assessing the charitable company’s future prospects and performance. However, no audit should be expected to predict the unknowable factors or all possible future implications for a charitable company associated with these particular events.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

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CLERVAUX TRUST

In our evaluation of the trustees' conclusions, we considered the risks associated with the charitable company's business, including effects arising from macro-economic uncertainties such as Covid-19, and analysed how those risks might affect the charitable company's financial resources or ability to continue operations over the period of at least twelve months from the date when the financial statements are authorised for issue. In accordance with the above, we have nothing to report in these respects. However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the absence of reference to a material uncertainty in this auditor's report is not a guarantee that the charitable company will continue in operation.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Report and Financial Statements, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

Matter on which we are required to report under the Companies Act 2006

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors’ Report included in the Report of the Trustees.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

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Responsibilities of trustees for the financial statements

As explained more fully in the Statement of Trustees' Responsibilities set out on page 9, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

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.

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

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 auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the 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.

William Devitt Senior Statutory Auditor for and on behalf of Grant Thornton UK LLP Statutory Auditor, Chartered Accountants Birmingham

Date: 31 March 2021

Grant Thornton UK LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

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CLERVAUX TRUST

STATEMENT OF FINANCIAL ACTIVITIES

(NET INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2020

Notes
INCOME FROM:
Donations
Charitable activities
Other trading activities
Investment income
TOTAL
3
EXPENDITURE ON:
Raising funds
Charitable activities
TOTAL
4
NET INCOME AND
MOVEMENT IN FUNDS
RECONCILIATION OF
FUNDS
Total funds brought
forward
14
RECONCILATION OF
FUNDS Total funds
carried forward
14		 Unrestricted
Funds
Restricted
Funds
Total Funds
Year to 31
August
2020
£
£
£
34,362
14,519
48,881
500,507
-
500,507
110,450
-
110,450
1,043
-
1,043
646,363
-
660,882
-
-
-
610,495
15,456
625,951
610,495
15,456
625,951
35,868
(937)
34,931
(134,196)
41,608
(92,588)
(98,328)
40,670
(57,658)		 Unrestricted
Funds
Restricted
Funds
Total Funds
Year to 31
August
2020
£
£
£
34,362
14,519
48,881
500,507
-
500,507
110,450
-
110,450
1,043
-
1,043
646,363
-
660,882
-
-
-
610,495
15,456
625,951
610,495
15,456
625,951
35,868
(937)
34,931
(134,196)
41,608
(92,588)
(98,328)
40,670
(57,658)		 Unrestricted
Funds
Restricted
Funds
Total Funds
Year to 31
August
2020
£
£
£
34,362
14,519
48,881
500,507
-
500,507
110,450
-
110,450
1,043
-
1,043
646,363
-
660,882
-
-
-
610,495
15,456
625,951
610,495
15,456
625,951
35,868
(937)
34,931
(134,196)
41,608
(92,588)
(98,328)
40,670
(57,658)		 Total Funds
Year to 31
August
2019
£
26,188
531,143
152,267
3,076
**- **
660,882		 712,674
-
**15,456 **
-

625,951		 -
825,357
**15,456 **
625,951		 825,357
**(937) **
34,931		 (112,683)
**41,608 **
(92,588)		 20,095
**40,670 **
(57,658)		 (92,588)

The notes on pages 17 to 34 form part of these financial statements.

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CLERVAUX TRUST

BALANCE SHEET AS AT 31 AUGUST 2020 REGISTERED COMPANY NUMBER: 4295400

Notes
FIXED ASSETS:
Tangible assets
10
CURRENT ASSETS:
Debtors
11
Cash at bank and in hand
LIABILITIES:
Creditors falling due within one year
12
NET CURRENT
(LIABILITIES)/ASSETS
NET (LIABILITIES)/ASSETS
FUNDS
Unrestricted funds
Restricted funds
14		 31 August
2020
£
80,184
171,583
61,904
233,487
(371,328)
(137,841)
(57,657)
(98,328)
40,671
(57,657)		 31 August
2019
£
56,672
29,575
63,656
93,230
(242,491)
(149,261)
(92,588)
(134,196)
41,608
(92,588)

The financial statements were approved by the Board of Trustees on 15/02/2021 and were signed on its behalf by:

I K Clements Trustee

The notes on pages 17 to 34 form part of these financial statements

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CLERVAUX TRUST

CASH FLOW STATEMENT AS AT 31 AUGUST 2020 REGISTERED COMPANY NUMBER: 4295400

NOTES
Cash flows from operating activities:
Net cash provided by (used in ) operating
activities
19
Cash flow from investing activities
Payments to acquire tangible fixed assets
Net cash provided by (used in) investing
activities
Change in cash and cash equivalents in
reporting period
Cash and cash equivalents at begininnig of the
reporting period
Change in cash and cash equivalents at the
end of the reporting period		 2020
41,153
(42,904)
(42,904)		 2019
68,322
(41,357)
(41,357)
(1,752) 26,965
63,656 36,691
61,904 63,656

The notes on pages 17 to 34 form part of these financial statements

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CLERVAUX TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1. ACCOUNTING POLICIES

Legal status of the Charity

Clervaux Trust Limited (Clervaux) was incorporated in England and Wales as a company limited by guarantee (registered no. 04295400) and has no share capital.

The liability of members in the event of winding up is limited to an amount not exceeding £10 per member; the number of members as at 31 August 2020 was three.

Clervaux is also registered as a charity with the Charity Commission (registered no. 1143033).

Registered and principal office

The registered office of Clervaux is Ruskin Mill, Millbottom, Nailsworth, Stroud, Gloucestershire, GL6 0LA.

The principal office of Clervaux is Clow Beck Centre, Jolby Lane, Darlington DL2 2TF.

Basis of accounting

The financial statements have been prepared in accordance with 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) - (Charities SORP (FRS 102)) and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

The financial statements have been prepared under the historical cost convention.

The financial statements are presented in sterling (£) which is the functional currency of the charity. Clervaux Trust Limited meets the definition of a public benefit entity under FRS 102.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

Going concern

The charitable company meets its financing requirement through funding provided by other group companies, and Ruskin Mill Trust Limited, the ultimate parent undertaking, has provided assurances that such group financial support will continue to be made available.

During the Covid-19 pandemic Clervaux Trust Limited has continued to support its residents, either through home learning or on-site; this resulted in there being a very limited impact on Clervaux during this period. During this time, cash flow has been regularly monitored to make sure Clervaux Trust was able to meet all its commitments.

Working alongside Ruskin Mill Trust Limited, robust budgets are set, and the actual spend against these budgets is analysed on a monthly basis by both the Executive Team and the Board of Trustees Finance Sub-Committee. The full Board also receives the monthly management accounts and reviews them on a two-monthly cycle.

The group, headed by Ruskin Mill Trust Limited, has substantial net assets.

After making detailed enquiries and taking into account the factors discussed above, the Board is confident that the charitable company has adequate scope to continue its operational existence for the foreseeable future. There are no material uncertainties surrounding going concern and accordingly the charitable company continues to prepare the financial statements on a going concern basis.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1. ACCOUNTING POLICIES (CONTINUED)

Fixed assets and depreciation

Assets with a cost below £500 are not capitalised.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:

Leasehold property - 2% pa - straight line Equipment - 25% pa - straight line Fixturesandfittings - 25% pa - straight line Motor vehicles - 25% pa - straight line

Income

Donations are credited to revenue when the charitable company has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received, and the amount can be measured reliably.

Income from charitable and other trading activities is accounted for in the period in which the income is earned.

Investment income is accounted for on an accruals basis.

Cash and cash equivalents

The cash and cash equivalents of Clervaux Trust Limited, currently comprise the cash in hand, bank deposits and short term deposits net of bank overdrafts.

Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources.

Governance costs include consultancy, legal and audit fees.

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Termination payments

Termination payments are accounted for as soon as the charitable company is aware of the obligation to make the payment.

Pension costs

The charitable company contributes to a defined contribution scheme. Amounts paid in relation to this scheme are charged to the Statement of Financial Activities when they fall due. All pension costs are allocated to unrestricted funds.

Debtors

Short-term debtors are initially measured at transaction price, less any impairment. Prepayments are measured at the amount prepaid.

Creditors

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

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1. ACCOUNTING POLICIES (CONTINUED)

Funds

Unrestricted funds can be used in accordance with the charitable objects at the discretion of the Trustees.

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

Further explanation of the nature and purpose of each fund is included in note 15 of these financial statements.

Financial instruments

Clervaux 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. Please see note 14.

Significant estimates and judgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The items in the financial statements where these estimates and judgements have been made include the following:

Useful economic lives of tangible assets

The annual depreciation charges for the tangible assets are sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on economic utilisation and the physical condition of the assets.

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Operating leases

Rentals applicable to operating leases where substantially all the benefits and risks of ownership remain with the lessor are charged to the Statement of Financial Activities on a straight line basis over the term of the lease. Lease incentives are recognised over the life of the lease on a straight line basis as a reduction to the expense.

Taxation

The company is a registered charity and as such is entitled to tax exemption on all its income and gains, properly applied for its charitable purposes.

VAT

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

2. STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR to 31.8.19

Notes
INCOME FROM:
Donations
Charitable activities
Other trading activities
Investment income
TOTAL
3
EXPENDITURE ON:
Charitable activities
TOTAL
4
NET INCOME AND
MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS
Total funds brought forward
15
Total funds carried forward
15		 Unrestricted
Funds
£
250
531,143
152,267
3,076		 Restricted
Funds
£
25,938
-
-
-		 Total Funds
Year to
31.8.19
£
26,188
531,143
152,267
3,076
686,736 25,938 712,674
813,383 11,974 825,357
813,383 11,974 825,357
(126,647) 13,964 (112,683)

**(7,549) **
**27,644 **		 20,095
(134,196) 41,608 (92,588)

23

CLERVAUX TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

3. INCOME

Donation income
Charitable activities
Fees
Other trading activities
Café & bakery sales
Farm sales
Miscellaneous
Investment income
Rents received
Bank interest

TOTAL INCOME
 Year to 31
August
2020
Year to 31
August
2019
£
£
48,881
26,188
500,507
531,143
108,305141,194
1,758 11,073
388-

110,450152,267
1,0433,076
-
-
-3,076
660,882712,674

24

CLERVAUX TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

4. EXPENDITURE

Charitable activities
Provision of education services
TOTAL EXPENDITURE		 Direct
costs
(See Note
5)
Support
costs (See
Note 6)
Yearto
31 August
2020
£
£
£
393,853
232,098
625,951
393,853
232,098
625,951		 Yearto
31 August
2019
£
825,357
825,357

5. DIRECT COSTS OF CHARITABLE ACTIVITIES

Staff Costs
Independent workers
Training and welfare
Project costs
Household costs
Motor and transport
Governance		 Year
Ended 31
August
2020
Year
Ended 31
August
2019
£
£
180,369
189,887
75,889
236,953
3,278
2,314
87,787
99,846
17,347
34,374
25,410
16,223
3,771
6,697
393,853
586,294

25

CLERVAUX TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

6. SUPPORT COSTS

Provision of education services
Provision of education services		 Finance
£
4,599
Finance
£
9,890		 Other
£
209,043
Other
£
214,925		 Depreciation
£
18,457
Depreciation
£
14,127		 Total Year
to 31
August 2020
£
232,098
Total Year
to 31
August 2019
£
238,943

7. NET INCOME

Net income is stated after charging:

Year Year
Ended 31 Ended 31
August August
2020 2019
£ £
Auditor's remuneration for the provision of:
- statutory audit 4,000 4,000
- preparation of financial statements - -
Operating lease payments 92,159 90,947
Depreciation - owned assets 18,457 14,247

26

CLERVAUX TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

8. STAFF COSTS

Staff Costs:
Wages and Salaries
Social security costs
Pension costs		 Year
Ended 31
August
2020
Year
Ended 31
August
2019
£
£
162,382
174,975
15,602
12,733
2,385
2,179
180,369
189,887

The monthly average headcount number of employees during the period was as follows:

Care, support and administration
Management		 Year
Ended 31
August
2020
Year
Ended 31
August
2019
No
No
18
14
2
2
20
16

No key management personnel received remuneration in the current or previous period.

One employee received emoluments in the salary band of £60,000 to £70,000 in the current year; this is the same as 2019.

27

CLERVAUX TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

9. TRUSTEES’ REMUNERATION AND BENEFITS

No Trustees received remuneration in the current or previous period.

No Trustee expenses were reimbursed in the current or previous period.

10. TANGIBLE FIXED ASSETS

Cost
At 31 August 2019
Additions
Disposals
At 31 August 2020
Depreciation
At 31 August 2019
Charge for the year
Disposals
At 31 August 2020
NBV
At 31 August 2020
At 1 September 2019		 Equipment
Fixtures and
Fittings
Motor
Totals
£
£
£
£
85,987
215,675
18,340
320,001
8,664
34,240
-
42,904
(10,521)
-
(4,495)
(15,016)
84,129
249,914
13,845
347,888
70,018
185,417
7,893
263,328
7,790
6,175
4,491
18,457
(10,521)
-
(3,559)
(14,080)
67,287
191,591
8,826
267,704
16,842
58,323
5,019
80,184
15,969
30,257
10,446
56,672

11. DEBTORS: AMOUNTS DUE WITHIN ONE YEAR

Trade Debtors
Amounts due from group undertakings
Prepayments
Other Debtors		 Year
Ended 31
August
2020
Year
Ended 31
August
2019
£
£
150,614
11,047
350
-
16,500
10,200
4,119
8,328
171,583
29,575

28

CLERVAUX TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Other creditors
Amounts owed to group undertakings
Social security and other taxes
VAT
Accruals and deferred income		 31 August
2020
£
41,311
-
283,661
4,327
16,395
25,635
371,328		 31 August
2019
£
31,276
14,589
160,335
2,414
1,480
32,397
242,491

Included in amounts owed to group undertakings is an interest free loan of £283,661 (2019: £160,336) from Ruskin Mill Trust Limited. The loan is due to be repaid by 31 August 2021 and as such no discounting has been applied on the grounds of materiality.

13. OPERATING LEASE COMMITMENTS

At the period end the charitable company has total commitments due under non-cancellable operating leases, for items of equipment only, as set out below:

Operating Lease commitments due:
Within 1 year
Within 2 – 5 year		 Year
Ended 31
August
2020
Year
Ended 31
August
2019
£
£
88,159
80,372
242,000
220,000
330,159
300,371

29

CLERVAUX TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

13. FINANCIAL INSTRUMENTS

Financial assets measured at settlement value
Financial liabilities measured at settlement value		 31 August
2020
£
216,987
324,972		 31 August
2019
£
83,031
224,007

Financial assets measured at settlement value comprise cash, trade debtors, other debtors and amounts due from group undertakings.

14. RECONCILIATION OF MOVEMENT IN FUNDS

Unrestricted funds
General fund
Restricted funds
York Resident Society
Friends of Clervaux
Root Store
Clervaux Minibus
Brother Jonathan Trust
Armed Forces Covenant
Clervaux Development - The Fold
Military Green woodwork Course
Defibrillators
Covid-19 Donations
Apple Juice Pasteuriser
TOTAL		 At 31
August
2019
£
(134,196)
800
13,970
1,501
(635)
2,000
2,789
21,183
-
-
-
-
41,608
(92,588)		 Income
£
646,363
200
-
4,500
635
-
-
200
3,984
100
2,900
2,000
14,519
**660,882 **		 Expenditure
£
(610,495)
-
-
(6,001)
-
(2,000)
-
(7,022)
-
-
(433)
-
(15,456)
(625,951)		 At 31
August
2020
£
(98,328)
1,000
13,970
-
-
-
2,789
14,361
3,984
100
2,467
2,000
40,671
(57,657)

30

CLERVAUX TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

15. RECONCILIATION OF MOVEMENT IN FUNDS (CONTINUED)

A further £200 has been received for York residents. This donation can York Residents Society be spent on activities or equipment.

These funds have been provided to run workshops and events for Friends of Clervaux Young Mums. The Covid-19 pandemic has meant that these workshops and events have not been able to go ahead this year.

Donations of £4,000 from the Bramble Trust and £500 from the Root Store Catherine Cookson Charitable Trust have been received in the year. This has enabled Clervaux Trust to complete the Root Store which had original funding from Tesco Bags of Help. Clervaux Minibus The final donation of £635 was received this year. This was used for the purchase of the minibus in 2018. These funds have been received to run summer camps for young Brother Jonathan Trust children. These funds have been spent on the purchase of equipment and tools for these events. This donation was received from the Armed Forces to work alongside Armed Forces Covenant the armed forces by running summer camps and family days for the families of armed forces personnel. The Covid-19 pandemic has meant that these events have not been able to go ahead this year. Alongisde the donations that were received last year, an additional £200 Clervaux Development - The donation has been received from the ASDA Green Token scheme. This Fold donation has been granted for the purchase of kitchen equipment at The Fold. There has been expenditure of £7,022 in the year on the Clervaux development. This has included £3,000 on Shorthorn heifers for breeding, as well as equipment for the site. North Yorkshire CC has donated £3,984 to Clervaux Trust. This Military - Green Woodwork donation is for Clervaux to run a green woodwork course to military Course families. Defibrillators Clervaux Trust are raising funds for the purchase of a defibrillator to be kept on site.

31

CLERVAUX TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

15. RECONCILIATION OF MOVEMENT IN FUNDS (CONTINUED)

Covid-19 Donations

Hadrian's Trust has donated £2,000. This donation has been received to run a nutritional fast food scheme for NHS staff in the local area. A £400 donation was received for the purchase of PPE equipment for staff.

Groundworks has donated £500 for the purchase of sat navs. These sat navs enable the veg box deliveries to reach additional Darlington residents during the Covid-19 pandemic.

Apple Juice Pasteuriser

A donation of £2,000 was received from the Jack Brunton Trust, the donation is to be used to purchase an apple juice pasteuriser. This will enable Clervaux Trust to produce apple juice and sell it through the veg box scheme.

Unrestricted Funds
General Fund
Restricted Funds
Friends of Clervaux
York Resident Society
Friends of Clervaux
Root Store
Clervaux Minibus
Brother Jonathan Trust
Armed Forces Covenant
Clervaux Development - The Fold
Green Woodwork - The Fold
TOTAL		 At 31
August
2018
Income
Expenditure
At 31
August
2019
£
£
£
£
(7,549)
686,736
(813,383)
(134,196)
609
-
(609)
-
600
200
-
800
13,970
-
-
13,970
456 1,250
(202)
1,504
1,335
(1,973)
(638)
597
2,000
(597)
2,000
10,076
-
(7,287)
2,789
-21,183
- 21,183
-
1,305
(1,305)
-
27,644
25,938
(11,974)
41,608
20,095
712,674
(825,357)
(92,588)

32

CLERVAUX TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

16. ANALYSIS OF NET ASSETS BETWEEN FUNDS

2020
Unrestricted funds
Restricted Funds
2019
Unrestricted Funds
Restricted Funds		 Fixed Assets
Net Current Assets
Fund Balance
80,184
(178,512)
(98,328)
-
40,671
40,671
80,184
(137,841)
(57,657)
56,672
(190,868)
(134,196)
-
41,608
41,608
56,672
(149,261)
(92,588)

17. ULTIMATE PARENT COMPANY AND CONTROLLING PARTY

Ruskin Mill Trust Limited (registered in England and Wales; company number: 07252866 and charity number: 1137167) is the sole member and controlling party of Clervaux Trust Limited. The objects of Ruskin Mill Trust Limited include the advancement of the education of young people with learning difficulties and/ or behavioral problems or special educational needs; the promotion of research into the practice and development of those areas of education; and the promotion of Rudolf Steiner education establishments. The charitable company runs six special educational needs schools/colleges. A copy of their financial statements can be obtained from the Registrar of Companies, Companies House, Crown Way, Cardiff CF14 3UZ.

18. RELATED PARTIES

During the current and prior year, the Executive Chair was the director and sole corporate Trustee of Ruskin Mill Land Trust (RMLT). At the year-end, there was a loan due from RMLT of £nil (2019: £nil). No interest is to be paid on this loan, and there are no associated guarantees or securities. There have also been purchases of £59,159 (2019: £52,872), these purchases relate to the annual rental of the Clow Beck site as well as Bishop’s House.

33

CLERVAUX TRUST

19. RECONCILIATION OF OPERATING GAIN TO NET CASH INFLOW FROM OPERATING ACTIVITIES

Net incoming resources before gains/(losses)
Non operating cashflows eliminated:
Depreciation of tangible fixed assets
Loss on disposal
Decrease / (Increase) in debtors
Increase/(Decrease) in creditors
Net cash inflow from operating activities		 2020
34,931
18,457
936
(142,008)
128,837
41,153		 2019
(112,683)
14,247
-
58,424
108,334
68,322

34