2023-01-31-accounts

Charity registration number 1058306

CLC INTERNATIONAL OFFICE

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023

CLC INTERNATIONAL OFFICE

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees J Chamberlain G Ince J Raby J Watkins P Nemansky (Appointed 18 August 2022) C Pulsford (Appointed 3 July 2023) 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 - 7
Balance sheet	8
Statement of cash flows	9
Notes to the financial statements	10 - 23

CLC INTERNATIONAL OFFICE

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 JANUARY 2023

The trustees present their annual report and financial statements for the year ended 31 January 2023.

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 the Regional Directors of five regions - Africa, Asia, Europe, Latin America, North America & Caribbean - 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.

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CLC INTERNATIONAL OFFICE

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2023

Achievements and performance

The year ended 31 January 2023 was positive for CLC internationally. By the end of the fiscal year global sales continued to increase compared to pre-pandemic levels. Total global sales were almost 4% above the previous fiscal year and 5.50% above fiscal year ending 31 January 2019. Though internet sales fell about 8% compared to the previous fiscal year, they still represent over 15.5% of total global sales. The reason for the fall is that customers have returned to visiting the physical bookshops. Additionally, many countries had a notable increase of sales on third-party websites such as Amazon, Ebay, Shopee and Mercadolibre. Some countries continued to have a significant increase in sales by engaging customers on social media platforms such as WhatsApp, Facebook and Instagram. We had comprehensive sales reporting every six months.

International Director and Regional Directors

The International Director, Gary Chamberlin, continued to lead the body of Regional Directors throughout the year, meeting frequently via Zoom. The Regional Directors began to travel again, post-Covid, in the second part of the year. They continued to concentrate on meeting each other and giving oversight to the various CLC teams through video meetings, instant messaging and emails.

The first post-Covid physical meeting of the Regional Directors took place in October in Cyprus. On that occasion Hervé Lessous, Director of CLC France, was elected to be the new European Director.

The Regional Directors continued to develop the Structural Review of the International Office. Though this remains important and there has been progress, the urgency subsided because of lower expenses and higher revenues, resulting in a more balanced budget.

Global meetings

The use of Zoom to enable global meetings continued to be effective and appreciated. It is an excellent way of bringing the worldwide CLC Fellowship together. Three meetings to promote prayer for the CLC Fellowship were organised in March, June and October. Approximately 120 CLC staff participated at each meeting from about 40 countries. The devotionals at these meetings focused on the CLC Core Values of faith, fellowship, holiness and sacrifice.

The International Council held meetings on Zoom in May and September 2022 to consider various issues and to consider proposals for the IO Protocol, which was developed in order to better define the relationships among the Council, Trustees, ID, RDs and IO Staff. In May the International Council approved a significant part of the IO Protocol. The approval of the remaining part will be in-person at the Council meeting in September 2024.

Mutual Support

The International Office continued to facilitate the support of certain CLC ministries to strengthen those that were particularly hard hit by the pandemic. Support was especially focused on funding salaries and helping a few countries purchase badly needed stock such as Benin, Burkina Faso, Mexico, Peru and Sierra Leone. In particular, the Caribbean islands and Myanmar benefited in this way since they continued to face great difficulties throughout the year.

Project Funding

Funding was provided to Burkina Faso to purchase a good used vehicle, permitting them to run book tables at churches and conferences, mostly in the south and near the capital.

Funds were raised for Sierra Leone to purchase a kéké, a 3-wheeled vehicle, to enable them to run book tables in and around the city of Bo.

The Ukraine Project received funds of over £350,000 from many sources including individuals, publishers, CLC countries and foundations in the UK and USA. About 500,000 pieces of literature including children’s Bibles and books and Gospels of John were printed mostly in Poland and distributed to refugees through our CLC channels in Hungary, Italy, Romania, UK and mostly Poland. Many were also distributed among many refugees inside Ukraine, some on the front lines and in bomb shelters.

A loan was provided to help Ecuador construct a new building on a piece of land which they have owned for many years. The new building in the important port city of Guayaquil will include a warehouse and a large shop. At the beginning of the year a loan was granted to Panama to help purchase a shop in the Westland Mall in the north of Panama City.

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CLC INTERNATIONAL OFFICE

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2023

Bible Projects

In the previous year funds were raised for printing Bibles for three countries in Francophone West Africa. At the beginning of this fiscal year the 10,000 French language Bibles began to arrive in Benin, Burkina Faso and Ivory Coast.

Funds designated for CLC-ELS Pakistan were released to enable them to purchase 1,000 Bibles in order to ensure a constant supply to meet the demands.

Mission Statement Updated

The CLC International Mission Statement is as follows: The purpose of CLC is to honour God by making Christian literature and resources available to all nations, to help people come to faith and maturity in the Lord Jesus Christ.

Financial review

Income

Total income for the year was £529k (2022: £472k). Funding for projects amounted to £299k (2022: £179k) and was principally from CLC organisations but also from trusts and individuals.

Non-project income of £230k (2022: £293k) included £153k (2022: £135k) contributions from other CLC organisations, £55k (2022: £32k) from website charges to those organisations, £Nil (2022: £138k) from sale of charity's offices, £20k (2022: (£13k)) comprising foreign exchange gains and losses and £2k (2022: £1k) from other sources (mainly interest, book sales, rents and donations).

Expenditure

Total expenditure for the year was £518k (2022: £399k). Expenditure on projects amounted to £346k (2022: £222k). Non-project expenditure of £172k (2022: 177k) included £72k (2022: £106k) on support for staff and volunteers, £22k (2022: £Nil) on their travel and accommodation, £41k (2022: £43k) on website and IT costs, £11k (2022: £14k) on contributions not paid and £26k (2022: £14k) on other costs.

Reserves Policy

Free reserves at 31 January 2023 are £383k (2021: £381k). It is the Trustees' opinion that unrestricted funds equal to at least six months' normal expenditure should be maintained, which amounts to approximately £91k (2022: £116k). 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 experience 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 2023 are £601k (2022: £590k).

Plans for future periods

A significant part of the funds from the sale of the property in Abbeydale Road in Sheffield was subsequently designated for capital investments. Two loan funds were initiated for capital investments.

The International Director has a number of key priorities. These include a focus on making strategic capital investments, growing our global publishing and internet presence and focusing on future leadership as some Regional Directors will not be available for election again in 2024, the next physical CLC Council. This necessitates a strategic review to ensure a sustainable future for the International Office. The Regional Directors kept these priorities in focus during the year, resulting in positive developments for each priority.

Structure, governance and management

The charity is governed by a Declaration of Trust dated 8 August 1996 and is a registered charity, number 1058306.

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CLC INTERNATIONAL OFFICE

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2023

The trustees who served during the year and up to the date of signature of the financial statements were: J Chamberlain

E Lugg (Resigned 28 March 2022) G Ince J Raby J Watkins R Williams (Resigned 12 July 2022) H Alvarez (Appointed 18 August 2022 and resigned 10 May 2023) P Nemansky (Appointed 18 August 2022) C Pulsford (Appointed 3 July 2023)

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 four times 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.

The trustees' report was approved by the Board of Trustees.

J Raby Trustee

13 November 2023

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CLC INTERNATIONAL OFFICE INDEPENDEtrif EXAMINER'S REPORT TO THE TRUSTEES OF CLC INTERNATIONAL OFFICE I report to the trustees on my &YarninathJn of the finarvial sl8lements of CLC IntemalirThl Oh9 d￿rMy} for the yoar ended 31 January 21723. R•sponslblJltl•• and b•$is ol fvport A5 the truslees of the ¢harfty ￿ are responsibl8 for the prgparalion of the ffin￿￿1 statgmfnls in ag))rfance wilh the requirements of the Charities Act 2011 (the 2011 Aci). I report h respect of nry &Yamination of the tharfty's finawal sktemonts carri8d out undgr sg¢llon 145 of the 2011 Act. In Carrying out my examination I have folowed all applicsbl8 Dirgclions givgn by the Chority Commi55ion under sedion 14515)(bl of the 2011 ACL Independent examlnerfs statsment Swice the charity's gross income exceeded £250.l￿ your examiner must be a member of 8 body listed Ni seGlSon 145 of the 2011 Act. I confirm that l am qualtfied lo undertake the examinath)n because l am o m&mbgr of ICAEW, whbth is one of the listed l)odies. Your attentton is drawn to the fact that the i¥ity has prepared finanual stalements In accordance with Accounting and Reporting by ChariU8s preparing theif aco)un15 in accordan¢x the Financ4￿ ReportirrfJ Standard appIl￿ble in the UK and Repubnc of Ireland IFRS 1021 in preference lo the Aco))unting and Reporting by Charities.. Statement of Recommended Procli￿ issu8d on 1 Apn'l 2C¥)S tww is referred lo in the exionl regulat￿$ but has now l)een wilhdrawn. l understand Ihat this has been th)ne In ordw for financia ststements to provKle a true and fair ifyew In accordance with Generaliy A0￿pted Accounting Practieg effective for reporting peiiod5 Wynning C￿ or after 1 January 2015. I have completed my exnknakn. I confm Ihal no maltws have m to my attentw)n in c¥nn¢¢lion wilh the examlnation giwn9 me cause to believe that in any Maleri￿ respe¢t: accounting records were nol kepl in respect of Ihe charity as r8quired by section 130 of th9 2011 Acl.. or the financial statements do not accord wth those rECQtds', or the ffinanual stments do not wnpty wilh Ihe appIl￿ble requirement5 cor￿mIng the form and ￿￿teA1 of ac￿nIS $81 out In the Charibes (Accounts and Reports) R89ulatiws 21)08 other than any wuirement that the aco)unts give a tn￿ and fair View whith is nol a matter o)ngdered 8$ port 01 on iThJependenl trx8mlna￿n. I have no ￿ncernS and have come au0s5 no other Matte￿ in oMnerlion with ts examination to whK attgntion should be drawn in this report in order to enablg a proper ujderstanding ofthe ffirb8nci￿ Statements to h reathed. Grantwadè BAACA Wells Rkhardson Cannon House Ruuand Road Shgffield South Yorksh S3 8DP Dated: 16 November 2023

CLC INTERNATIONAL OFFICE

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 JANUARY 2023

Unrestricted Unrestricted Restricted funds funds funds general designated 2023 2023 2023 Notes £ £ £ Income and endowments from: Charitable activities 3 209,100 14,230 284,582 Other trading activities 4 - - - Investments 5 705 - - Surplus/(Loss) on dollar exchange 20,223 - - Other income 6 - - - Total income 230,028 14,230 284,582 Expenditure on: Charitable activities 7 171,335 21,595 324,652 Net incoming/(outgoing) resources before transfers 58,693 (7,365) (40,070) Gross transfers between funds 12 (54,988) 5,000 49,988 Net income for the year/ Net movement in funds 3,705 (2,365) 9,918 Fund balances at 1 February 2022 As originally reported 188,654 201,508 176,713 Prior year adjustment 22 - - 22,979 As restated 188,654 201,508 199,692 Fund balances at 31 January 2023 192,359 199,143 209,610	Total Unrestricted Unrestricted Restricted funds funds funds general designated 2023 2022 2022 2022 £ £ £ £ 507,912 167,478 21,641 157,736 - 240 - - 705 (500) - - 20,223 (12,864) - - - - 138,405 - 528,840 154,354 160,046 157,736 517,582 178,045 25,867 194,933 11,258 (23,691) 134,179 (37,197) - 32,777 2,386 (35,163) 11,258 9,086 136,565 (72,360) 566,875 179,568 64,943 249,073 22,979 - - 22,979 589,854 179,568 64,943 272,052 601,112 188,654 201,508 199,692	Total 2022 £ 346,855 240 (500) (12,864) 138,405 472,136 398,845 73,291 - 73,291 493,584 22,979 516,563 589,854

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CLC INTERNATIONAL OFFICE

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 JANUARY 2023

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

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CLC INTERNATIONAL OFFICE

BALANCE SHEET

AS AT 31 JANUARY 2023

Notes Fixed assets Investments 13 Current assets Stocks 14 Debtors 15 Cash at bank and in hand Creditors: amounts falling due within one year 16 Net current assets Total assets less current liabilities Income funds Restricted funds 17 Unrestricted funds - designated 18 Unrestricted funds - general	2023 £ 748 149,686 478,656 629,090 (36,807)	£ 8,829 592,283 601,112 209,610 199,143 192,359 601,112	2022 £ 1,410 112,285 516,155 629,850 (48,825)	£ 8,829 581,025
				589,854
				199,692 201,508 188,654
				589,854

The financial statements were approved by the Trustees on 13 November 2023

J Raby Trustee

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CLC INTERNATIONAL OFFICE

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 JANUARY 2023

Notes Cash flows from operating activities Cash absorbed by operations 23 Investing activities Proceeds from disposal of tangible fixed assets Investment income received Net cash generated from investing activities Net cash used in financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year	2023 £ - 705	£ (38,204) 705 - (37,499) 516,155 478,656	2022 £ 211,915 (500)	£ (77,513) 211,415 - 133,902 382,253 516,155

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CLC INTERNATIONAL OFFICE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023

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 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 amounts 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 Prior period error

Restricted funds brought forward have been increased by £22,979, representing loan monies owed by CLC Peru previously recognised as Project income of £3,829 and Project expenditure of £26,808 in the year ended 31 January 2020.

1.3 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.

1.4 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.

1.5 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.

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CLC INTERNATIONAL OFFICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2023

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.

1.6 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.

1.7 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:

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 were included in the financial statements at cost. No depreciation was provided on freehold land and buildings. It was the policy of the Trustees to maintain their properties in such a condition that their value was not impaired by the passage of time. Freehold land and buildings were disposed of in August 2021.

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CLC INTERNATIONAL OFFICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2023

1 Accounting policies

(Continued)

1.8 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 22. 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.

1.9 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.

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.

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CLC INTERNATIONAL OFFICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2023

1 Accounting policies

(Continued)

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 payments 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.

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.

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CLC INTERNATIONAL OFFICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JANUARY 2023

3 Charitable activities

Bible Companion sales Contributions CLC Projects CLC Holdings Website and Digital income Analysis by fund Unrestricted funds - general Unrestricted funds - designated Restricted funds	2023 £ 935 152,936 272,037 26,775 55,229 507,912 209,100 14,230 284,582 507,912	2022 £ 635 134,506 100,925 78,452 32,337
		346,855
		167,478 21,641 157,736
		346,855

4 Other trading activities

	**Total **	Unrestricted
		funds
		general
	2023	2022
	£	£
Letting and licensing arrangements	-	240

5 Investments

	**Unrestricted **	Unrestricted
	funds	funds
	general	general
	2023	2022
	£	£
Interest receivable	705	(500)

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CLC INTERNATIONAL OFFICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2023

6 Other income

	**Total **	Unrestricted
		funds
		designated
	2023	2022
	£	£
Net gain on disposal of tangible fixed assets	-	138,405

The profit on disposal of tangible fixed assets resulted from the sale of the charity's premises on Abbeydale Road in August 2021.

7 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 Bad debts Share of governance costs (see note 8) Analysis by fund Unrestricted funds - general Unrestricted funds - designated Restricted funds	2023 £ 4,998 - 788 324,635 21,612 1,795 800 22,211 5,631 378 41,081 71,974 623 10,926 507,452 10,130 517,582 171,335 21,595 324,652 517,582	2022 £ 2,703 277 756 152,920 67,880 3,756 929 (281) 3,216 540 43,249 106,286 355 13,789
		396,375 2,470
		398,845
		178,045 25,867 194,933
		398,845

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CLC INTERNATIONAL OFFICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JANUARY 2023

8 Support costs

Support costs Governance costs £ £ Independent Examiner fees - 2,800 Legal and professional fees - 7,330 - 10,130 Analysed between Charitable activities - 10,130	2023Support costs Governance costs £ £ £ 2,800 - 2,360 7,330 - 110 10,130 - 2,470 10,130 - 2,470	2022 £ 2,360 110
		2,470
		2,470

Governance costs includes payments to the independent examiner of £2,800 (2022- £2,360).

9 Trustees

Travel and other expenses amounting to £Nil (2022 - £Nil) were reimbursed to any trustees during the year.

The charity has incurred £377 (2022 - £377) of expenditure in respect of Trustees Indemnity Insurance.

No trustees received any remuneration during the year (2022 - £Nil).

10 Employees

The average monthly number of employees during the year was:

	2023	2022
	Number	Number
	1	1
Employment costs	2023	2022
	£	£
Wages and salaries	4,998	2,703

There were no employees whose annual remuneration was more than £60,000.

11 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

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CLC INTERNATIONAL OFFICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2023

12 Transfers

Unrestricted funds designated Restricted funds 2023 2023 2023 £ £ £ European Conference costs (3,086) 3,086 International Council reserve (5,000) 5,000 Support payments - G Scalante - - - Contingency fund transfers re Benin - - - Suspense account fund transfer re Benin - - - Digital App project subsidy transfer (46,902) - 46,902 Website support costs re Switzerland - - - Evangelistic Literature project - - - (54,988) 5,000 49,988

Total Unrestricted funds designated Restricted funds Total 2023 2022 2022 2022 2022 £ £ £ £ £ - - - - - - - - - - - 5,414 - (5,414) - - (400) - 400 - - - (500) 500 - - 27,763 - (27,763) - - - 1,041 (1,041) - - - 1,845 (1,845) - - 32,777 2,386 (35,163) -

• 17 -

CLC INTERNATIONAL OFFICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JANUARY 2023

13 Fixed asset investments

Unlisted investments Other investments £ Cost or valuation At 1 February 2022 & 31 January 2023 8,028 801 Carrying amount At 31 January 2023 8,028 801 At 31 January 2022 8,028 801 2023 Other investments comprise: Notes £ Investments in subsidiaries 21 801 14 Stocks 2023 £ Finished goods and goods for resale 748 15 Debtors 2023 Amounts falling due within one year: £ Trade debtors 54,598 Other debtors 82,078 Prepayments and accrued income 13,010 149,686 16 Creditors: amounts falling due within one year 2023 £ Other taxation and social security 61 Trade creditors 2,130 Other creditors 15,612 Accruals and deferred income 19,004 36,807	Total £ 8,829
	8,829
	8,829
	2022 £ 801
	2022 £ 1,410
	2022 £ 53,582 52,733 5,970
	112,285
	2022 £ - 459 23,231 25,135
	48,825

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CLC INTERNATIONAL OFFICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2023

17 Restricted funds Project Mozambique: Bible printing Project Peru Project funds below £10,000, held for the benefit of individual CLC Countries Africa Conference Travel Fund Columbia Loan Fund Conference Costs CLC Europe Digital Technologies Evangelistic literature Project Publishing Fund Rudy Kuijer Evangelism Fund SOS Fund Print on demand Equipment Fund Awaiting allocation	10,984 4,227 100,878 1,748 1,933 3,181 132,345 1,845 9,415 - - - 5,496 272052	3,674 2,986 1,988 - 95,369 (127,817) - - 1,060 - - - - (27,725) - - 20,000 (22,359) 200 - 25,686 (11,177) 1,000 - 8,759 (8,841) 157736 194933	- - 16,301 - - - (27,763) (1,845) (7,041) - (9,401) - (5,414) 35163	17,644 6,215 84,731 1,748 2,993 3,181 76,857 - 15 200 5,108 1,000 - 199692	60 - 10,916 - 261,103 (288,732) - - - - 5,637 (9,815) - (23,888) 2,293 - - (17) 68 - 4,505 (2,200) - - - - 284582 324652	1,721 485 5,533 (734) - 3,086 46,902 - - - (7,005) - - 49988	19,425 17,616 62,635 1,014 2,993 2,089 99,871 2,293 (2) 268 408 1,000 - 209610

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.

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CLC INTERNATIONAL OFFICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2023

18 Unrestricted funds - designated

These are unrestricted funds which are material to the charity's activities made up as follows:

Balance at 1 February 2021 r £ R Jones - CLC Workers MacKinnon - Other CLC workers 4,415 Where most needed Fund - Investment in subsidiaries (Note 20) 801 Non RF Funds awaiting allocation 609 International Council Reserve Fund (i) 15,209 Emergency Fund (ii) 1,909 BELT Fund (iii) 42,000 Property Purchase Fund (iv) - Publishing fund - New Country Start Up fund - Publish Devotional Book fund - 64943	Movement in funds Incoming esources Resources expended £ £ 4,345 (4,345) 4,020 (4,020) 12,093 (16,508) - - - - 795 (694) - (300) - - 388 - 138,405 - - - - - - - 160046 25867	Transfers Balance at 1 February 2022 r £ £ - - - - - - - - - 801 (500) 210 - 14,909 - 1,909 2,886 45,274 - 138,405 - - - - - - 2386 201508	Movement in funds Incoming esources Resources expended £ £ 5,060 (5,060) 4,110 (4,102) 359 (318) 3,602 (2,415) - - - - - - - - 1,099 - - - - (9,700) - - - - 14230 21595	Transfers Balance at 31 January 2023 £ £ - - - 8 - 41 210 1,397 - 801 (210) - 5,000 19,909 - 1,909 - 46,373 (23,405) 115,000 9,700 - 9,000 9,000 4,705 4,705 5000 199143	Transfers Balance at 31 January 2023 £ £ - - - 8 - 41 210 1,397 - 801 (210) - 5,000 19,909 - 1,909 - 46,373 (23,405) 115,000 9,700 - 9,000 9,000 4,705 4,705 5000 199143
					199143

• 20 -

CLC INTERNATIONAL OFFICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JANUARY 2023

19 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.

(iv) The Property Purchases Fund was created in August 2021, comprisng the proceeds from the sale of the charity's former offices on Abbeydale Road. The funds are to be used for assisting the purchase of properties throughout the CLC fellowship.

• 21 -

CLC INTERNATIONAL OFFICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2023

20 Analysis of net assets between funds Unrestricted funds Designated funds Restricted funds 2023 2023 2023 £ £ £ Fund balances at 31 January 2023 are represented by: Investments 8,028 801 - Current assets/(liabilities) 184,331 198,342 209,610 192,359 199,143 209,610	Total Unrestricted funds Designated funds Restricted funds 2023 2022 2022 2022 £ £ £ £ 8,829 8,028 801 - 592,283 180,626 200,707 199,692 601,112 188,654 201,508 199,692	Total 2022 £ 8,829 581,025
		589,854

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2023

CLC INTERNATIONAL OFFICE

21 Subsidiaries

Details of the charity's subsidiaries at 31 January 2023 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 (Co. no. 08582787), which was incorporated on 25 June 2013, was dormant for the period 25 June 2013 to 31 January 2022.

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.

22 Prior period errors

Restricted funds brought forward have been increased by £22,979, representing loan monies owed by CLC Peru previously recognised as Project income of £3,829 and Project expenditure of £26,808 in the year ended 31 January 2020.

23 Cash generated from operations Surplus for the year Adjustments for: Investment income recognised in statement of financial activities Gain on disposal of tangible fixed assets Depreciation and impairment of tangible fixed assets Movements in working capital: Decrease in stocks (Increase) in debtors (Decrease)/increase in creditors Cash absorbed by operations	2023 2022 £ £ 11,258 73,291 (705) 500 - (138,405) - 277 662 633 (37,401) (23,866) (12,018) 10,057 (38,204) (77,513)	2023 2022 £ £ 11,258 73,291 (705) 500 - (138,405) - 277 662 633 (37,401) (23,866) (12,018) 10,057 (38,204) (77,513)
		(77,513)

24 Analysis of changes in net funds

The charity had no debt during the year.

• 23 -