**Charity Registration No. 1058306** ## **CLC INTERNATIONAL OFFICE** **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021** ## **CLC INTERNATIONAL OFFICE** ## **LEGAL AND ADMINISTRATIVE INFORMATION** **Trustees** Mr J Chamberlain Mrs E Lugg Mr G Ince Mr J Raby Mr J Watkins Miss R Williams **International director** Mr G Chamberlin **Charity number** 1058306 **Principal address** 118 Prospect Road Sheffield S17 4JE **Independent examiner** Grant Wade BA ACA Wells Richardson Cannon House Rutland Road Sheffield South Yorkshire S3 8DP **Bankers** CAF Bank Limited 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ Univest Bank and Trust Co. 10W Broad Street PO Box 64197 Souderton PA 18964 USA ## **CLC INTERNATIONAL OFFICE** ## **CONTENTS** ||**Page**| |---|---| |Trustees' report|1 - 4| |Independent examiner's report|5| |Statement of financial activities|6| |Balance sheet|7| |Notes to the financial statements|8 - 23| ## **CLC INTERNATIONAL OFFICE** ## **TRUSTEES' REPORT** ## _**FOR THE YEAR ENDED 31 JANUARY 2021**_ The trustees present their annual report and financial statements for the year ended 31 January 2021. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Declaration of Trust dated 8 August 1996 , the Charities Act 2011 and "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 ). ## **Objectives and activities** The charity's objects are : - The advancement of the Evangelical Tenets of the Christian religion either in the United Kingdom overseas especially through Christian literature. - The advancement for the public benefit of religious or other education. CLC is a missionary fellowship operating in 44 countries around the world. Each entity has its own registration in its country of operation, according to national legislation. There is no legal responsibility or ownership - apart from Romania, Bulgaria, Kyrgyzstan and France - and the individual CLC organizations work together under the guidelines of the voluntary code of the CLC International Constitution and the Guiding Principles. The role of the CLC International Office is to facilitate CLC ministries, to obtain and provide funding for projects, to create and manage websites and other digital projects, to provide supervision and training services and to serve as a common point of communication and reference for CLC worldwide. The function of the International Office is carried out by five Regional Directors - North America & Caribbean, Latin America, Africa, Europe and Asia - and a Digital Director, working in conjunction with the International Director. This group is given authority by the four-yearly International Council to interpret and apply the CLC International Constitution. While the International and Regional Directors do not have executive authority over the national CLC teams, their responsibility in fulfilling the role of the International Office is to monitor and mentor; to hold accountable leaders to their objectives; to provide leadership training; to give objective assessment of the health of the organisation; to provide oversight and accountability for grants made; and to be a service provider for websites and training. The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. The trustees are also aware of the Charity Commission's guidance on public benefit in The Advancement of Religion for the Public Benefit and have had regard to it in their administration of the Charity . The Trustees record their grateful thanks to the volunteers who have helped in maintaining the office, visited overseas centres and offered their advice and assistance throughout the year. Their contribution has been invaluable. ## **Achievements and performance** The year ended 31 January 2021 was overshadowed by the worldwide Covid 19 pandemic and most of the events of that year arose from, or were directly related to, the pandemic. CLC International Office was operating against a reduction of 13%, year on year, in CLC global sales and an increase of 86% in internet sales to over 18% of total sales. Two actions were taken soon after the pandemic became established: a “Crisis Action Guide” was produced that was well received by the individual countries and more frequent and comprehensive sales reporting was initiated. It has become a useful tool for the Regional Directors . ## **International Director** In April 2020 the International Director, Gerardo Scalante, suffered a heart attack. He did not return to work until August 2020, initially part-time. His deputy, Gary Chamberlin, stepped up to the role in the interim and gradually Gerardo took back the reins. Subsequent to the year-end, in September 2021, he resigned as International Director. His absence signaled the start of weekly Regional Directors’ meetings (since reduced in frequency). Previously they had met from time to time by Skype. These weekly meetings gave an opportunity to hear individual national directors, who were giving devotional presentations and became a valuable way to consider and debate up-coming opportunities and concerns. - 1 - ## **CLC INTERNATIONAL OFFICE** ## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2021**_ ## **Global meetings** An International Council meeting that should have taken place in South Korea in May 2020 did not take place. A short meeting, by Zoom, did take place in April 2021 and it is anticipated that the next physical council will not happen until 2024. Increased use has been made of Zoom and there were 2 global days of prayer and fasting in May 2020 and September 2020. The use of Zoom to enable these events to be a global experience were much appreciated and an excellent way of bringing the worldwide CLC Fellowship together. ## **Mutual Support** The International Office facilitated the support by stronger CLC ministries for those that were particularly hard hit by the pandemic. Support was especially focused on funding salaries. Burkina Faso and Myanmar were but two countries that benefited in this way. Decisions were made to close the ministries in Spain and Bolivia and the closure of that in Liberia was completed although none of these decisions were a result of Covid. The Regional Directors concerned devoted much time to these closures and to the new ministry in Peru. ## **Project Funding** In September the International Office received a gift of $20,500 from the Tyndale Foundation for countries with particular difficulties during the pandemic. ## **Bible Projects** In June the publisher, Harper Collins, donated 48 pallets of bibles for sale by the Latin American countries. The Regional Directors had also made June a month of the Bible in the CLC countries. During the year a project was initiated to print 10,000 bibles for French West Africa. French bibles are particularly expensive in Africa. ## **Financial review** ## **Income** Total income for the year was £ 404 k (20 20 : £ 566 k). Funding for projects amounted to £ 227 k (20 20 : £ 386 k) and was principally from CLC organisations but also from trusts and individuals. Non-project income of £ 177 k (20 20 : £18 0 k) included £ 149 k (20 20 : £15 7 k) contributions from other CLC organisations, £2 7 k (20 20 : £2 1 k) from website charges to those organisations and £ 1 k (20 20 : £ 2 k) from other sources (mainly book sales, rents and donations). ## **Expenditure** Total expenditure for the year was £ 385 k (2 020 : £ 587 k). Expenditure on projects amounted to £ 239k (20 20 : £ 422 k). Non-project expenditure of £1 46 k (20 20 : 165 k) included £ 102 k (20 20 : £8 3 k) on support for staff and volunteers, £ 14 k (20 20 : £ 52 k) on their travel and accommodation, £4 k (20 20 : £ 4 k) on website and IT costs , £ 13 k ( 20 20 : £ 5k ) on contributions not paid and £ 13 k (20 20 : £2 1 k) on other costs. ## **Reserves Policy** Free reserves at 31 January 202 1 are £ 162 k (20 20 : £ 89 k). It is the Trustees' opinion that unrestricted funds equal to at least six months' normal expenditure should be maintained, which amounts to approximately £ 100 k (20 20 : £ 89 k). In this context, the trustees consider normal expenditure should exclude costs of supporting projects, transfers, project funds, depreciation, bad debts and other non-committed expenditure. ## **Summary** Due to the timing of grant making expenditure, the net assets have increased and the Fund continues to meet the Trustees' objective of having six months' expenditure in hand. The Trustees consider that the reserves are sufficient to cover all foreseeable Project Fund Liabilities. ## **Covid 19** This year , the world has continued to experienc e the impact of the Covid19 pandemic. The CLC Fellowship has experienced its effect in all of the countries in which we serve. Some countries have been deeply impacted, particularly where there is a strong dependence on physical bookshops and those bookshops have been closed. At different times and for varying periods a total of 130 of our 146 bookshops worldwide were required to close because of the lockdown measures. On the other side, the pandemic has created opportunities for us to refocus our distribution with an emphasis on online channels. The International Office income has been negatively impacted by the fall in sales and the trustees have been taking steps to ensure its continued viability of the work. Funds carried forward at 31 January 202 1 are £4 94 k (20 20 : £4 75 k). - 2 - ## **CLC INTERNATIONAL OFFICE** ## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2021**_ ## **Plans for future periods** A significant step for the International Office was to be the sale of the property in Abbeydale Road. The decision to sell was made in the financial year to generate funds to ensure continued financial viability but the property had become an unnecessary burden. The International Office only needed to occupy a small proportion of the property and did not have the resources to manage a substantial let. The sale was completed in August 2021. The new International Director has a number of key priorities. These include focusing on future leadership as the Regional Directors will not be eligible for election again in 2024, the next physical CLC Council. This will necessitate a strategic review to ensure a sustainable future for the International Office. Also necessary is a protocol establishing how the Council, Trustees, ID, RDs and IO Staff are to interact in a harmonious and more transparent way. ## **Structure, governance and management** The charity is governed by a Declaration of Trust dated 8 August 1996 and is a registered charity, number 1058306. The trustees who served during the year and up to the date of signature of the financial statements were: Mr J Chamberlain Mrs E Lugg Mr G Ince Mr J Raby Mr J Watkins Miss R Williams CLC International Office Trustees are appointed on the recommendation of the existing Board and the International Director. New trustees undergo orientation to brief them on their legal obligations under charity law, the content of the Declaration of Trust, the decision making process and recent financial performance of the Charity . Trustee meetings are held at least twice a year with additional meetings as necessary. The International Director is appointed on a four-year basis on the recommendation of the International Council. The Board of Trustees, with the co-operation of the CLC International Office Team, led by the International Director, are primarily responsible for safeguarding and directing the distribution of monies received into the International Office Fund to progress the Objects as set out in the 1996 Declaration of Trust. The Trustees recognise their responsibility to assist CLCIO in fulfilling the aims of the International CLC fellowship respecting the guidelines set out in the CLC International Constitution 2016 edition. The Trustees will always seek to ensure that the Charity and its representatives function within the legal and regulatory framework as laid down by the Charity Commission of England and Wales, continually striving for best management practice. The Trustees will work to maintain the integrity of the CLC IO Fund by maintaining sound financial practices and overall efficient administration of the Charity and resources. The Trustees will ensure that monies granted are used for the purpose for which they are given and in accordance with the objects set out above. The Trustees will maintain absolute confidentiality about all sensitive information. The Trustees will regularly seek to assess the level of risk to the reputation, operation and achievement of the Charity and personal safety to members of the Charity and decide on the appropriate action to take in order to prevent damaging eventualities occurring and to mitigate the effect if they do. The Trustees recognise that they must always act in the best interests of the Charity and as a body will take appropriate action to prevent any Board member acting under conflicting interest. Decisions regarding the Trust Fund will be taken by the Trustees acting together and not by any one individually. The Trustees may delegate decisions on day to day matters as necessary but will establish proper reporting procedures and clear lines of accountability . - 3 - ## **CLC INTERNATIONAL OFFICE** ## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2021**_ The trustees' r eport was approved by the Board of Trustees. Mr J Raby **Trustee** 25 November 2021 - 4 - CLC INTERNATIONAL OFFICE INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF CLC INTERNATIONAL OFFICE I report to th8 trustees on my examin8￿on of the financlal statements of CLC Inlemational Office (the ¢harityl for the year ended 31 January 2021. Rospon8Ibllltl￿ and b￿1¥ of roport As Ihe Iruslegs of thg Gharity you are responsible for the p￿paratIon of the financial statement¥ in aGcordanGe with the ￿qui￿ments of the Charities Act 2011 Ith¢ 2011 Act). I rewrt In respect of my exaMInat￿)n of the charity's financial statements carried out undar section 145 of tha 2011 Act. In carying out my 8xaminalion I havo followed all the applicabl¢ Dire¢tion$ given by the Charity Commission under section 145151{bl of the 2011 Act. Ind•￿ndent examlner'8 Statement sin￿ the ¢harity's gross income exceeded £250.000 your examiner must be a member of a body li$led in section 145 of Ihe 2011 AGt. I wnfirrn that l am qualified to undertake the examination because l am a mgmb8r of ICAEW. which is one of the listed bodies. Your attention is drawn to the fact that the charity has prepared financial statements in accordanrR with A¢¢ounting and Reportlng by Chariknes preparing their a¢wunts in accordance with the Financial Reporting Stsndard applicabl8 in the UK and Republic of Ireland IFRS 102) in preference to the Accounting and Reporting by Charities.. Statement of Recommendgd Practice issued on 1 April 2005 which 18 referred to in the extant regulations but h8$ now been withdrawn. l understand that this has been done in order for financial statements lo provide a true and fair view in accordan￿ with Generally Accepted Accounting PraGlice effective for reportin9 periods beginning on or after 1 January 2015. I have ¢ompleled my examination. I confirm that no matters have come to my attention in cyJnrkeGtiM with the examination giving me caus• to believe that In any material Tespect.. a￿OuntIng records were not kept in ￿pect of the charity as required ty section 130 of the 2011 Act.. or the ftnancial Statements do not aGGord with those records., or the financlal statements do not comply with the applicable requirements conceming the fom and content of accounts sel out in the Charities (Accounts and Rewrtsl Rogulallons 2008 other than any requirement that the accounts give a true and fair view whlch is not a matter considered as part of an independent examination. I have no concems and have come acr05s no other matters in connection with tho examlnalion to which attention should be drawn in this report in order lo enable a proper understanding of th8 financrdl statements to be reached. Grant Wadg BA ACA Wells Rlchardson Cannon House Rutland Road sheff￿ld South Yorkshire S3 80P Dated.. 25 November 2021 ## **CLC INTERNATIONAL OFFICE** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## _**FOR THE YEAR ENDED 31 JANUARY 2021**_ |**Unrestricted Unrestricted**
**Restricted**
**funds**
**funds**
**funds**
**general d esignated**
**2021**
**2021**
**2021**
**Notes**
**£**
**£**
**£**
**Income from:**
Charitable activities
**3**
201,793
71,258
129,990
Other trading activities
**4**
530
-
-
Investments
**5**
226
-
-
Surplus/(Loss) on dollar exchange
(256)
-
-
**Total income**
202,293
71,258
129,990
**Expenditure on:**
Charitable activities
**6**
178,418
24,010
182,631
**Net income/(expenditure) for the year/**
**Net movement in funds**
23,875
47,248
(52,641)
**Net income/(expenditure) for the year/**
**Net movement in funds**
23,875
47,248
(52,641)
Fund balances at 1 February 2020
155,693
17,695
301,714
**Fund balances at 31 January 2021**
179,568
64,943
249,073|**Total Unrestricted Unrestricted**
**Restricted**
**funds**
**funds**
**funds**
**general d esignated**
**2021**
**2020**
**2020**
**2020**
**£**
**£**
**£**
**£**
403,041
182,416
15,978
365,419
530
980
-
-
226
294
-
-
(256)
503
-
-
403,541
184,193
15,978
365,419
385,059
185,962
24,429
376,222
18,482
(1,769)
(8,451)
(10,803)
18,482
(1,769)
(8,451)
(10,803)
475,102
157,462
26,146
312,517
493,584
155,693
17,695
301,714|**Total**
**2020**
**£**
563,813
980
294
503
565,590
586,613
(21,023)
(21,023)
496,125
475,102| |---|---|---| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. - 6 - ## **CLC INTERNATIONAL OFFICE** ## **BALANCE SHEET** ## _**AS AT 31 JANUARY 2021**_ |**Notes**
**Fixed assets**
Tangible assets
**10**
Investments
**11**
**Current assets**
Stocks
**12**
Debtors
**13**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**14**
Net current assets
**Total assets less current liabilities**
**Income funds**
Restricted funds
**15**
Unrestricted funds - designated
**16**
Unrestricted funds - general|**2021**
**£**
2,043
61,612
382,253
445,908
(34,940)|**£**
73,787
8,829
82,616
410,968
493,584
249,073
64,943
179,568
493,584|**2020**
**£**
2,148
53,996
344,969
401,113
(10,137)|**£**
75,297
8,829
84,126
390,976
475,102
301,714
17,695
155,693
475,102| |---|---|---|---|---| The financial statements were approved by the Trustees on 25 November 2021 Mr J Raby **Trustee** - 7 - ## **CLC INTERNATIONAL OFFICE** ## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 JANUARY 2021**_ ## **1 Accounting policies** ## **Charity information** CLC International Office is a charity governed by a Declaration of Trust dated 8 August 1996 and is a registered charity, number 1058306. ## **1.1 Accounting convention** The financial statements have been prepared in accordance with the charity's Declaration of Trust, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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). The charity is a Public Benefit Entity as defined by FRS 102. The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows. The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn. The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. ## **1.2 Going concern** At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. ## **1.3 Charitable funds** Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity. ## **1.4 Income** Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. - 8 - ## **CLC INTERNATIONAL OFFICE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2021**_ ## **1 Accounting policies** **(Continued)** Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. Donated goods and services are recognised on receipt. Rental income is accounted for on an accruals basis and includes all rental income due in the period of account. ## **1.5 Expenditure** Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use. ## **1.6 Tangible fixed assets** Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Individual items of office and computer equipment are capitalised if they cost more than £1,000 and have a useful economic life of more than one year. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Freehold land and buildings 0% Fixtures and fittings 33.3% The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities . Freehold land and buildings are included in the financial statements at cost. No depreciation is provided on freehold land and buildings. It is the policy of the Trustees to maintain their properties in such a condition that their value is not impaired by the passage of time. The residual value is similar to its carrying value and depreciation, therefore, would not be material. The Trustees perform annual impairment reviews in accordance with the requirement of FRS 102 to ensure that the carrying amount is not greater than the recoverable amount. - 9 - ## **CLC INTERNATIONAL OFFICE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2021**_ ## **1 Accounting policies** ## **(Continued)** ## **1.7 Fixed asset investments** Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred. ## a) Shares in subsidiary undertakings The shares in subsidiary undertakings represent Programme Related Investments, as defined in the FRS 102 SORP. Programme Related Investments are included in the balance sheet at the amount invested less any impairments and any amounts repaid. Where the original amount invested is not known, the Trustees have adopted a fair value based on their best estimate. Details of the subsidiary undertakings are set out in note 21 . Each operating subsidiary undertaking is exclusively involved in running a Christian bookshop. Although no benefit arises from any of the operating subsidiaries, the objectives of these subsidiaries are consistent with the aims and purposes of CLC International Office. The dormant subsidiary company will operate in the United Kingdom and will be involved in the development of an eReader App. ## b) Other unlisted investments The FRS 102 SORP requires that where the investment is in ordinary shares in unlisted companies it must be included at fair value if this can be measured reliably; or if not, cost less impairment. The Trustees consider that it is not cost effective to obtain a reliable fair valuation of the other unlisted investments which are included, therefore, at cost. ## **1.8 Impairment of fixed assets** At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) . ## **1.9 Stocks** Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell . Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost. Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. ## **1.10 Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. - 10 - ## **CLC INTERNATIONAL OFFICE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2021**_ ## **1 Accounting policies** ## **(Continued)** ## **1.11 Financial instruments** The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. ## _**Basic financial assets**_ Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. ## _**Basic financial liabilities**_ Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. ## _**Derecognition of financial liabilities**_ Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled. ## **1.12 Employee benefits** The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. ## **1.13 Foreign exchange** Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange prevailing at the accounting date. Transactions in foreign currencies are recorded at the date of the transactions. All differences are taken to the Statement of Financial Activities. - 11 - ## **CLC INTERNATIONAL OFFICE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2021**_ ## **2 Critical accounting estimates and judgements** In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. ## **3 Charitable activities** |Bible Companion sales
Contributions
CLC Projects
CLC Holdings
Website and Digital income
Awaiting allocation
Analysis by fund
Unrestricted funds - general
Unrestricted funds - designated
Restricted funds|**2021**
**£**
117
149,317
120,479
80,769
26,379
25,980
403,041
201,793
71,258
129,990
403,041|**2020**
**£**
214
156,915
171,372
210,025
20,584
4,703
563,813
182,416
15,978
365,419
563,813| |---|---|---| ## **4 Other trading activities** ||**Unrestricted**|Unrestricted| |---|---|---| ||**funds**|funds| ||**general**|general| ||**2021**|2020| ||**£**|£| |Letting and licensing arrangements|530|980| - 12 - ## **CLC INTERNATIONAL OFFICE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2021**_ ## **5 Investments** ||**Unrestricted**|Unrestricted| |---|---|---| ||**funds**|funds| ||**general**|general| ||**2021**|2020| ||**£**|£| |Interest receivable|226|294| ## **6 Charitable activities** |Staff costs
Depreciation and impairment
Cost of Goods sold
CLC Projects
CLC Holdings
Establishment costs
Telephone
Travel expenses
Printing, postage, stationery,books and subscriptions
Hospitality, Conference and Directors' meeting expenses
IT and website costs
Volunteers' Support costs
Bank charges
Donations and gifts
Bad debts
UK Support costs
Share of governance costs (see note 7)
**Analysis by fund**
Unrestricted funds - general
Unrestricted funds - designated
Restricted funds|**2021**
**£**
2,691
1,510
207
173,431
33,210
1,803
1,033
14,400
1,836
120
36,248
101,884
360
-
13,246
-
381,979
3,080
385,059
178,418
24,010
182,631
385,059|**2020**
**£**
-
-
21,030
269,457
131,194
2,770
792
52,000
2,303
3,590
3,763
83,458
372
231
5,093
1,516
577,569
9,044
586,613
185,962
24,429
376,222
586,613| |---|---|---| - 13 - ## **CLC INTERNATIONAL OFFICE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2021**_ ## **7 Support costs** |**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Independent Examiner
fees
-
2,340
Legal and professional
fees
-
740
Trustee expenses
-
-
-
3,080
Analysed between
Charitable activities
-
3,080|**2021**
Support
costs
Governance
costs
**£**
£
£
2,340
-
2,250
740
-
3,054
-
-
3,740
3,080
-
9,044
3,080
-
9,044|2020
£
2,250
3,054
3,740
9,044
9,044| |---|---|---| Governance costs includes payments to the independent examiner of £ 2,340 (2020- £ 2,250 ) . ## **8 Trustees** Travel and other expenses amounting to £ Nil (20 20 - £ 3,740 ) were reimbursed to Nil (20 20 : 2) trustees. The charity has incurred £3 6 8 (20 20 - £37 8 ) of expenditure in respect of Trustees Indemnity Insurance. No trustees received any remuneration during the year (2020 - £Nil). ## **9 Employees** The average monthly number of employees during the year was: ||**2021**|**2020**| |---|---|---| ||**Number**|**Number**| ||1|-| |**Employment costs**|**2021**|**2020**| ||**£**|**£**| |Wages and salaries|2,691|-| There were no employees whose annual remuneration was more than £60,000. - 14 - ## **CLC INTERNATIONAL OFFICE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2021**_ |**10**
**Tangible fixed assets**
**Freehold land**
**and buildings**
**Fixtures and**
**fittings**
**£**
**£**
**Cost**
At 1 February 2020
73,510
9,933
At 31 January 2021
73,510
9,933
**Depreciation and impairment**
At 1 February 2020
-
8,146
Depreciation charged in the year
-
1,510
At 31 January 2021
-
9,656
**Carrying amount**
At 31 January 2021
73,510
277
At 31 January 2020
73,510
1,787
**11**
**Fixed asset investments**
**Unlisted**
**investments**
**Other**
**investments**
**£**
**Cost or valuation**
At 1 February 2020 & 31 January 2021
8,028
801
**Carrying amount**
At 31 January 2021
8,028
801
At 31 January 2020
8,028
801|**Total**
**£**
83,443
83,443
8,146
1,510
9,656
73,787
75,297
**Total**
**£**
8,829
8,829
8,829| |---|---| In 2005, CLC France wished to buy a warehouse property. This involved acquiring SCI Le Point du Jour, the company which owned the property, a common practice in France. CLC France was not legally able to be the outright shareholder and proposed it would acquire 39/40 and CLC International Office would buy 1/40. CLC IO did not have sufficient funds at that time and it was agreed that CLC France would pay CLC IO's share, but subsequently this was paid in full. The figure of £8,028 shown in the accounts represents CLC IO's 1/40 share at cost. CLC International Office has received no dividends or other income from SCI Le Point du Jour throughout the period of the investment. |||**2021**|**2020**| |---|---|---|---| |Other investments comprise:|**Notes**|**£**|**£**| |Investments in subsidiaries|**20**|801|801| - 15 - ## **CLC INTERNATIONAL OFFICE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2021**_ |**12**
**Stocks**
Finished goods and goods for resale
**13**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Other debtors
Prepayments and accrued income
**14**
**Creditors: amounts falling due within one year**
Trade creditors
Other creditors
Accruals and deferred income|**2021**
**£**
2,043
**2021**
**£**
50,910
2,623
8,079
61,612
**2021**
**£**
-
12,408
22,532
34,940|**2020**
**£**
2,148
**2020**
**£**
47,056
1,011
5,929
53,996
**2020**
**£**
19
2,552
7,566
10,137| |---|---|---| - 16 - ## **CLC INTERNATIONAL OFFICE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2021**_ ## **15 Restricted funds** The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes: |||**Movement in funds**|**Movement in funds**|||**Movement in funds**|**Movement in funds**||| |---|---|---|---|---|---|---|---|---|---| ||**Balance at**|**Incoming**|**Resources**|**Transfers**|**Balance at**|**Incoming**|**Resources**|**Transfers**|**Balance at**| ||**1 February**|**resources**|**expended**||**1 February**|**resources**|**expended**||**31 January**| ||**2019**||||**2020**||||**2021**| ||**£**|**£**|**£**|**£**|**£**|**£**|**£**|**£**|**£**| |Project Antigua|1,304|-|-|-|1,304|355|(413)|-|1,246| |Project Argentina|4,144|-|(4,144)|-|-|-|-|-|-| |Project CA2|-|450|-|-|450|70|-|-|520| |Project Bangladesh|15,330|1,785|-|(10,000)|7,115|-|-|-|7,115| |Project Barbados|1,002|-|-|-|1,002|-|(1,002)|-|-| |Project Russian language Bible Fund|11,549|61|(896)|-|10,714|18,284|(13,587)|-|15,411| |Project Benin|-|39|-|-|39|1,555|(1,594)|-|-| |Project Bolivia|2,012|9,690|(11,575)|-|127|14,887|(4,919)|-|10,095| |Project Bulgaria|(100)|3,206|(1,976)|-|1,130|-|(1,702)|-|(572)| |Project Burkina Faso|(51)|4,039|(3,687)|-|301|17,779|(16,563)|1,898|3,415| |Project China|22,482|-|(51,490)|40,000|10,992|-|(10,992)|-|-| |Project Cote D'Ivoire|-|1,128|(850)|-|278|-|(10)|-|268| |Project Cuba|2,012|-|(2,012)|-|-|-|-|-|-| |Project Dominica|29|-|-|-|29|-|-|-|29| |Project Ecuador|180|-|-|-|180|-|-|-|180| |Project France: Bible project|-|-|-|-|-|2,882|-|-|2,882| |Project Germany|6,536|-|(6,536)|-|-|-|-|-|-| |Project Hungary|44|500|-|-|544|-|-|-|544| |Project India|1,948|1,700|(3,648)|-|-|-|-|-|-| |Project Indonesia|-|350|-|-|350|1,387|(236)|(1,000)|501| |Project Italy|-|1,180|-|-|1,180|2,829|(4,009)|-|-| |Project Japan|60|-|-|-|60|-|(1,000)|1,000|60| |Project Kenya|1,050|10,292|(11,341)|-|1|4,534|(4,331)|-|204| - 17 - ## **CLC INTERNATIONAL OFFICE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 JANUARY 2021**_ ## **15 Restricted funds** |**Restricted funds**||||||||**(Continued)**|**(Continued)**| |---|---|---|---|---|---|---|---|---|---| |Project Korea|25|-|-|-|25|-|-|-|25| |Project CA1|405|200|-|-|605|450|(955)|-|100| |Project Liberia Monrovia|369|-|(369)|-|-|-|-|-|-| |Project Mozambique: Bible printing|21,949|11,992|-|(5,000)|28,941|5,315|(23,272)|-|10,984| |Project Mozambique|7,848|19,009|(15,622)|13,131|24,366|13,087|(13,199)|-|24,254| |Project Mozambique: Napula Project fund|-|22,388|(9,257)|(13,131)|-|8,084|(913)|-|7,171| |Project Myanmar|446|-||-|446|-|(446)|-|-| |Project Nicaragua|485|-|-|-|485|-|-|-|485| |Project Pakistan|11,131|941|(2,697)|-|9,375|930|(115)|-|10,190| |Project Papua New Guinea|-|15,771|(15,745)|-|26|-|(26)|-|-| |Project Paraguay|2,877|-|-|(2,877)|-||||| |Project Peru (i)|-|16,276|(33,929)|7,877|(9,776)|2,906|(11,882)|-|(18,752)| |Project Philippines|440|820|(411)|-|849|1,000|(1,849)|-|-| |Project Poland|325|5,117|(2,673)|-|2,769|2,905|(5,020)|-|654| |Project Portugal|-|1,335|(1,335)|-|-|-|-|-|-| |Project Romania|1,254|200|(6,454)|5,000|-|3,600|(3,600)|-|-| |Project Russia|10,849|3,173|(9,698)|5,300|9,624|5,605|(5,219)|-|10,010| |Project Sierra Leone|27|1,064|(1,025)|-|66|4,232|(3,632)|-|666| |Project Spain|(38)|-|-|-|(38)|1,992|(1,954)|-|-| |Project Spain: Bible Project|27,486|25,403|(63,127)|10,000|(238)|1,840|(1,602)|-|-| |Project Thailand|386|90|(386)|-|90|-|-|-|90| |Project Tongo|-|1,898|-|-|1,898|-|-|(1,898)|-| |Project Trinidad & Tobago|1,126|-|-|-|1,126|87|(1,203)|-|10| |Project Uruquay|-|-|-|-|-|1,172|(1,135)||37| |Project Venezuela|8,026|5,973|(4,951)|(5,000)|4,048|50|(109)|-|3,989| |Project Venezuela Support|-|5,301|(3,623)|-|1,678|2,662|(3,041)|-|1,300| |Holding CLC Suspense|-|8,459|(8,459)|-|-|-|-|-|-| |Africa Conference Travel Fund|5,163|4,617|(8,032)|-|1,748|-|-|-|1,748| |Americas Conference|-|31,463|(31,463)|-|-|-|-|-|-| |Asia Conference|-|1,538|-|-|1,538|-|(1,538)|-|-| - 18 - ## **CLC INTERNATIONAL OFFICE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 JANUARY 2021**_ ## **15 Restricted funds** |**Restricted funds**
BELT Barnabus Trust
CLC UK
Columbia Loan Fund
Conference Costs CLC Europe
Digital Technologies
Europe Conferenc: Poland Meeting
Evangelistic literature Project
Movie Translation French - Spanish
Project International Website
Publishing Fund
Awaiting allocation|-
-
1
996
139,792
-
6,845
(696)
(4,966)
435
-
**312517**|250
100,000
1,932
18,905
-
1,654
-
-
4,966
20,264
-
**365419**|-
-
-
(100,000)
-
-
(16,720)
-
(31,423)
60,000
(6)
-
-
(5,000)
-
-
-
-
(10,662)
(300)
-
-
**376222**
**0**|250
-
1,933
3,181
168,369
1,648
1,845
(696)
-
9,737
-
**301714**|-
-
-
-
-
-
-
696
-
-
8,815
**129990**|(250)
-
-
-
(36,024)
(1,648)
-
-
-
(322)
(3,319)
**182631**|**(Continued)**
-
-
-
-
-
1,933
-
3,181
-
132,345
-
-
-
1,845
-
-
-
-
-
9,415
-
5,496
**0**
**249073**| |---|---|---|---|---|---|---|---| The Project Accounts represent funds raised for projects in specific countries. Where the funds raised are insufficient to meet the project expenditure, funds are transferred from the unrestricted funds of CLC International Office. In the event that the project does not go ahead, funds may be transferred to other projects with the agreement of the donors. (i) Project Peru is showing as a negative balance but further funds are expected to be received. - 19 - ## **CLC INTERNATIONAL OFFICE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2021**_ ## **16 Unrestricted funds - designated** These are unrestricted funds which are material to the charity's activities made up as follows: |||**Movement in funds**|**Movement in funds**|||**Movement in funds**|**Movement in funds**|| |---|---|---|---|---|---|---|---|---| ||**Balance at**|**Incoming**|**Resources**|**Transfers**|**Balance at**|**Incoming**|**Resources**|**Balance at**| ||**1 February**|**resources**|**expended**||**1 February**|**resources**|**expended**|**31 January**| ||**2019**||||**2020**|||**2021**| ||**£**|**£**|**£**|**£**|**£**|**£**|**£**|**£**| |R Jones|-|4,001|(4,001)|-|-|7,188|(7,188)|-| |CLC Workers MacKinnon|168|4,906|(5,074)|-|-|4,288|(4,288)|-| |Don and Betsy Veldboom|-|3,168|(3,168)|-|-|-|-|-| |Other CLC workers|208|2,006|(2,214)|-|-|4,415|-|4,415| |Covid relief|-|-|-|-|-|11,740|(11,740)|-| |Holding CLC workers|-|447|-|-|447|-|-|447| |Investment in subsidiaries (Note 20)|801|-|-|-|801|-|-|801| |Non RF Funds awaiting allocation|5,215|200|(5,265)|-|150|806|(794)|162| |International Council Reserve Fund (i)|17,845|1,250|(4,707)|-|14,388|821|-|15,209| |Emergency Fund (ii)|1,909|-|-|-|1,909|-|-|1,909| |BELT Fund (iii)|-|-|-|-|-|42,000|-|42,000| ||26,146|15,978|(24,429)|-|17,695|71,258|(24,010)|64,943| - 20 - ## **CLC INTERNATIONAL OFFICE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2021**_ ## **17 Designated funds** The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes: (i) The International Council Reserve Fund relates to monies set aside for the costs of the CLC International Council which is organised by the Charity every four years. (ii) The Emergency Fund is a revolving loan fund made available to CLC ministries in serious difficulties at the discretion of the International Director (with agreement from the Trustees if the sum is above £5,000). Repayment terms will be drawn up as appropriate. (iii) The Barnabas Evangelical Literature Trust (BELT) Fund represents funds transferred from that charity following the decision to dissolve that charity in January 2021. The funds are to be used for loans towards the work of CLC around the world, particularly for the purchase of property. - 21 - ## **CLC INTERNATIONAL OFFICE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2021**_ |**18**
**Analysis of net assets between funds**
**Unrestricted**
**funds**
**Designated**
**funds**
**Restricted**
**funds**
**2021**
**2021**
**2021**
**£**
**£**
**£**
Fund balances at 31 January 2021 are represented
by:
Tangible assets
73,787
-
-
Investments
8,028
801
-
Current assets/(liabilities)
97,753
64,142
249,073
179,568
64,943
249,073|**Total**Unrestricted
funds
Designated
funds
Restricted
funds
**2021**
2020
2020
2020
**£**
£
£
£
73,787
75,297
-
-
8,829
8,028
801
-
410,968
72,368
16,894
301,714
493,584
155,693
17,695
301,714|Total
2020
£
75,297
8,829
390,976
475,102| |---|---|---| - 22 - ## **CLC INTERNATIONAL OFFICE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JANUARY 2021**_ ## **19 Events after the reporting date** The charity's property at 291 Abbeydale Road was sold for £221,500 in August 2021 and the charity moved into rented premises. ## **20 Subsidiaries** Details of the charity's subsidiaries at 31 January 2021 are as follows: |**Name of undertaking**|**Registered**|**Nature of business**|**Class of**|**% Held**| |---|---|---|---|---| ||**office**||**shares held**|**Direct Indirect**| |Centre for Logistics and Co-|Bulgaria|Christian bookshop|Ordinary|100.00| |operation Ltd.||||| |Maranatha Ltd.|Bulgaria|Christian bookshop|Ordinary|100.00| |CLC Romania|Romania|Christian bookshop|Ordinary|100.00| |Bishkek shop|Central Asia|Christian bookshop|Ordinary|100.00| |CLC Digital Ltd.|United Kingdom|Dormant|Ordinary|100.00| CLC Digital Ltd, which was incorporated on 25 June 2013, was dormant for the period 25 June 2013 to 31 January 202 1 . The Trustees consider that consolidated accounts are not required as the aggregate gross income of the parent charity and its subsidiaries, after consolidation adjustments, does not exceed the statutory income threshold of £1M (Charities Act 2011 (Group Accounts ) Regulations 2015). The net assets of subsidiary undertakings which are not material need not be disclosed in the parent's accounts. The Trustees consider that the net assets of its subsidiaries are not material to the parent charity and no disclosure is required, therefore, in these accounts. - 23 -