2022-03-31-accounts

CHARITY REGISTRATION NUMBER 1102542 COMPANY REGISTRATION NUMBER 4489582

HOPE COMMUNITY FOUNDATION

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

HOPE COMMUNITY FOUNDATION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees	C Davies
	A E Ibbotson
	E Muthiah
	L Davies
	L E Willis
	J Bramhall	(Appointed 21 April 2022)
	B P Kunaka	(Appointed 30 June 2022)
Secretary	A E Ibbotson
Charity number	1102542
Company number	4489582
Registered office	The Hope Centre
	Bernard Road
	Sheffield
	South Yorkshire
	S2 5BQ
Auditor	UHY Hacker Young
	6 Broadfield Court
	Broadfield Way
	Sheffield
	S8 0XF
Bankers	Barclays Bank plc
	P.O. Box 1385
	2 Arena Court
	Sheffield
	S9 2WV
Solicitors	Geldards
	Number One Pride Place
	Pride Park
	Derby
	DE24 8QR

HOPE COMMUNITY FOUNDATION

CONTENTS

	Page
Trustees' report	1 - 7
Statement of trustees' responsibilities	8
Independent auditor's report	9 - 12
Statement of financial activities	13
Balance sheet	14
Notes to the financial statements	15 - 28

HOPE COMMUNITY FOUNDATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2022

The trustees present their report and accounts for the year ended 31 March 2022.

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 Memorandum and Articles of Association, the Companies Act 2006 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 education of children under statutory school age by provision of a nursery school;

• Relief of poverty and sickness;

• To provide facilities for recreation or other leisure time occupation with the object of improving the conditions of life; and

• Other such charitable purposes as the trustees think fit.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Until recently, the principal activity of the charity has been the provision of nursery education and care for children in the early years. In the past three years, the work of the charity has diversified considerably, although the provision of early years education remains the most substantive part of our work as a charity.

Achievements and performance

The Hope Centre houses the work of Hope Community Foundation. The Hope Centre is well located to serve the needs of local communities, specifically but not exclusively those located in the S2 and S9 postcodes of the city, both of which have a higher-than-average rate of disadvantage compared with many other communities in Sheffield, and are amongst the most disadvantaged in England and Wales. They represent many of the hardest hit, both in the aftermath of COVID-19 and in the current economic downturn and associated cost of living crisis.

During this time, the charity, working alongside and in partnership with other statutory and non-statutory agents, has continued to provide inclusive services and support to an increasing number of local residents. This has been a considerable achievement, especially given the current review of early years provision at national level which has resulted in a considerable degree of uncertainty in the early years and childcare sectors.

• 1 -

HOPE COMMUNITY FOUNDATION

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2022

Our Community Projects

The charity has continued to seek ways in which it can extend the scope and impact of its work beyond that of childcare provision. With a valued support and engagement of staff and volunteers we have been able to build the strength of much of our existing provision as well as seek to work with partners to add further support options to our portfolio of services to enable us to not only meet presenting needs, but to ensure we seek to address the multiple needs of our beneficiaries and create the optimum social value across all of our services.

For example:

1. Our Hope Hampers Food Bank working in partnership with S6 Foodbanks has continued to deliver impact to those in need locally.

2. Our Community Grocery working in partnership with The Message Trust, is going strong with more households being served through the membership scheme.

3. We were successful in securing temporary funds for an additional staff member who added value in organisational structure through policies and procedures which helped to create a sustainable growth track for the charity.

4. Our dedicated area within The Hope Centre is now a thriving hub of community activity operating five days a week.

5. We have started new projects in the last 18 months to offer further support to the people in our local area.

6. We are working together with educational organisations offering placements for young people to help them further their studies.

This financial year represents year two of a three-year commitment made by the Henry Smith Charity. That has enabled the charity to create a post for a Volunteer Coordinator. This post has been instrumental in building volunteering capacity and establishing and maintaining links to new opportunities. As a result, we now have over 80 volunteers engaged across all our projects.

In order to scale up our work more effectively, to meet local needs, we have made considerable progress in engaging with local statutory and non-statutory bodies. Our current work alongside both The Message Trust, S6 Foodbanks and Together for Sheffield have enabled us to considerably increase our engagement and impact in our community. In addition we are developing strong links with both Sheffield Universities, SAVTE (Sheffield Association for the Voluntary Teaching of English), MASKK Sheffield, and corporate business and other partners such as Voluntary Action Sheffield (VAS).

We firmly believe that these links and others will enable us to sustain our work and maximise the impact we make as a charity in the local community. In addition, this intentional move to build strong partnerships is helping the charity to become recognised as a valuable and integral part of the local infrastructure charged with delivering social value in the area.

• 2 -

HOPE COMMUNITY FOUNDATION

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2022

Key Outputs from our Community Projects (Year to November 2022)

1. Hope Hampers Food Bank provided 772 beneficiaries with emergency food parcels.

2. Foundation Community Grocery now has over 1300 members (households) registered and has seen over 8300 individual shopping visits.

3. CAP Debt Advice - working in partnership with Network Church Sheffield we provide weekly sessions for those seeking assistance with their debt and looking to extent this in the future.

4. Polkadots Play Group has delivered weekly sessions during term time. Average attendance per session is over 22 unique individuals.

5. Jigsaw Cafe – we are now providing two weekly sessions for over 55s. On average, around 15 separate attendees per session with over 30 per week being a regular part of the project and a total membership to date of 43 people.

6. We now operate a viable, donation-based, community café which provides the space for many of our projects to operate.

7. Kickstart (Work Placements for Young people). This project has completed, and we have been able to retain one person to work as an Apprentice in the Facilities team at the Hope Centre.

8. Neon schools project has recommenced with one person employed for one day a week to do our Youth work, working to support school aged youth (11-16).

9. Conversation Café –We have recently launched our conversational English sessions after receiving training and resource support from an external partner (SAVTE).

10. We have launched our Pathways process, which is a volunteer-led project aiming to help us to provide a listening and signposting service to our beneficiaries. It provides us with a way of consulting with our service users.

11. We have added new Trustees, with lived experience of the needs we are aiming to address and of living in our primary area of benefit.

12. We continue to maintain a strong focus on Safeguarding vulnerable adults and young people, having now formed a partnership Safeguarding Board whose aim is to ensure that safeguarding is effective across all aspects of the work of the Hope Centre.

13. 3 -

HOPE COMMUNITY FOUNDATION

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2022

Our Community Nursery (Little Ark Nursery & Pre-School)

The Charity operates a community nursery which comprises both paid for and funded provision for local families. Throughout the past 18 months the nursery has succeeded in providing quality childcare and continued to work in partnership with statutory agencies despite a period of prolonged and considerable uncertainty which has been felt locally and nationally across the early years sector. The charity trustees are aware of emerging policy from national government, intended to ensure that childcare is viable and affordable. However, at this time and in the aftermath of considerable political upheaval in recent months no firm policy has been agreed at this stage.

The nursery has continued to operate effectively and is a ‘Good’ Ofsted rating as a result of an inspection conducted in March 2019 and is currently undergoing a re-registration process with Ofsted in order to bring the registration under the Hope Community Foundation charity. Previously and historically, the registration had been under the name of the founding charity, which at the time was ‘Hope City Church’ now C3 Trust UK (the parent charity of Hope Community Foundation). Alongside these changes the charity has now installed Colin Davies (Trustee) as the Nominated Individual for the Nursery, a requirement of Ofsted.

Given the climate within which the nursery has operated and still operates, staff have worked hard to regain ground lost during COVID-19 and retain the confidence of parents in a time of uncertainty.

Occupancy levels across the nursery remain lower than preferred, although there is a steady rate of recovery and increasing momentum which is being monitored and reviewed regularly. Through the financial year the charity has continued to benefit from the rental concessions generously awarded to the nursery. A stepped reintroduction of rent is being introduced from April 2023.

As part of the ongoing commitment to the nursery and recognition of its integral role in combining with other community projects, the charity has recently benefited from funding which is undertaking the refurbishment and upgrade of the nursery roof garden. This work will provide a refreshed external play area for nursery children and is estimated to be completed by the end of January 2023.

Despite the adverse trading environment and uncertainties that the sector is experiencing, with the support of its partners over the coming months, Trustees, at this stage, remain confident that the nursery can and will continue to recover, although this is not expected to be fully realised within the next 12 months.

• 4 -

HOPE COMMUNITY FOUNDATION

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2022

Funding and Fundraising

The charity has a fundraising strategy which brings together different revenue streams including the following:

1. Primary Purpose Trading (e.g Early year provision)

2. External grant making trusts and statutory funders

3. Individual & Corporate Donations (cash and in-kind)

4. Delivery of contracted services

The charity has been successful in gaining external funding from Sheffield City Council and Asda Foundation which have been applied to the running of our community projects. Previously awarded funds from Aviva Community Fund have been committed in-year to their intended purpose, to facilitate the mentoring of young people.

The charity received its year two draw downs from the Henry Smith Charity (part of a three-year funding programme which has supported capacity building across our work).

The charity was also successful in generating contracted income through the government’s Kickstart scheme to provide young people with work experience. These funds were designated to the project and surplus was confirmed as unrestricted with the contracting organisation.

Existing funds raised for our Jigsaw café for over 55’s has been deployed this year to fund this activity and we are currently awaiting the outcome of other applications to support this project ongoing.

The charity continues to receive funding from individual donors and plans to be more intentional in the coming year to raise awareness of opportunities for personal support.

The community café operates largely on a donation basis ensuring that the café is accessible and financially viable.

Financial review

The trustees make strategic and operational decisions based on the financial position of the charity by reference to the financial information (i.e. budgets, cashflows) provided to them quarterly at their formal meetings. The trustees however do not get involved in the day to day detailed running of the charity except where required in order to support the appointed officers for the charity.

The charity received £457,361 (2021: £309,923) of income during the financial year to 31 March 2022 and expended £465,478 (2021: £310,836) showing a deficit of £8,117 (2021: £913). The principal sources of income are disclosed in notes 3 and 4 to the accounts.

The charity has unrestricted reserves of £(9,122) (2021: £(3,046)). The trustees have identified that the available reserves are at a low level and are addressing this in order to build reserves in line with the charity's reserves policy of three month's operating costs.

The trustees have assessed the major risks to which the charity is exposed, which include the risk of overgearing due to the cross guarantee of borrowings taken out in C3 Trust UK, formerly Hope City Church. The trustees are satisfied that systems are in place to mitigate exposure to the major risks.

• 5 -

HOPE COMMUNITY FOUNDATION

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2022

Future Progress and Development

Trustees are encouraged by the progress being made both in terms of effective delivery of existing and new community projects and the steady improvements being brought to bear in the nursery. The charity’s strategy moving forward is twofold:

1. To continue to commit to the growth and strength of Little Ark Nursery & Pre-School, this being a vital part of our work and key component to the social value we provide.

2. To continue to extend our community work in a managed and sustainable way whilst strengthening our links with other local provision to enable us to forge a person-centred approach to our work.

Some examples of the way this strategy will be outworked will be the following:

1. Seeking funding for additional roles to further strengthen the organisational infrastructure, thereby enabling us to grow in a managed way.

2. Seeking extension funding for the role of Volunteer Coordinator.

3. Look to expand the work we do to alleviate poverty by scaling up the presence of debt advice at the Hope Centre with a view to having a full-time debt advisor in place within 2 years.

4. Consolidate our emergency food relief efforts by concentrating this around the Community Grocery. We believe this model is not only more sustainable, but also provides progression routes to independence of our service users.

5. Strengthen our existing programmes by extending their reach and engagement.

6. Establishing our Pathways process as a central means by which we can ensure that we are delivering outcomes as well as outputs.

7. To undertake a social audit of our work to quantify the social value and impact we provide through our work as a charity.

8. Continue to establish vital and effective links and strategic partnerships to extend our scope of work and subsequently the impact we make.

Structure, governance and management

The charity is a company limited by guarantee under the provisions of the Companies Act 2006. (Number 04489582). The company does not have share capital. The charity was set up as a new company on 18 July 2002 and received registered charity status in March 2004 (Number 1102542). The company officially changed its name to Hope Community Foundation from 13 August 2021.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were: C Davies

A E Ibbotson E Muthiah L Davies L E Willis J Bramhall B P Kunaka

(Appointed 21 April 2022) (Appointed 30 June 2022)

• 6 -

HOPE COMMUNITY FOUNDATION

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2022

There are at least 3 managing trustees at any one time in line with the charity's governing documents. When a vacancy occurs, the trustees discuss potential candidates and instruct a trustee representative to approach potential candidates. The trustees make a final decision to appoint trustees based on cultural fit, experience, knowledge and commitment.

None of the trustees have any beneficial interest in the company. At the time of preparing these financial statements, all of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

The trustees review payments made to employees in equivalent managerial positions in similar organisations when considering the levels of pay for key managers. The trustees also take in to consideration the ability of the charitable company to be able to pay such salaries.

The current company secretary is Anna Elizabeth Ibbotson (appointed 3 February 2022).

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor are aware of such information.

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

C Davies

Trustee Dated: 22 March 2023

• 7 -

HOPE COMMUNITY FOUNDATION

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2022

The trustees, who are also the directors of Hope Community Foundation for the purpose of company law, are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these accounts, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts;

• prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

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

• 8 -

6 Broadfield Court Broadfield Way Sheffield S8 0XF

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HOPE COMMUNITY FOUNDATION

Opinion

We have audited the financial statements of Hope Community Foundation (the ‘charity’) for the year ended 31 March 2022 which comprise the statement of financial activities, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

• give a true and fair view of the state of the charitable company's affairs as at 31 March 2022 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Material uncertainty relating to going concern

We have identified a matter of concern in our report because we have concerns that the charity may not be able to continue as a going concern. Disclosure has been made in note 1.2 to the accounts concerning the charity's ability to continue as a going concern. The trustees are aware of certain material uncertainties which remain largely outside of the immediate control of the charity and centre around challenges facing early-years education on a national level which comprises the majority of the income of the charity. The charity is playing an active part in representing the sector where appropriate to effect positive change at local and national level.

• 9 -

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HOPE COMMUNITY FOUNDATION CONTINUED

Other information

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and

• the directors' report included within the trustees' report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report.

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

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of trustees' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit; or

• the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' report and from the requirement to prepare a strategic report.

• 10 -

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HOPE COMMUNITY FOUNDATION CONTINUED

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

• 11 -

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HOPE COMMUNITY FOUNDATION CONTINUED

Based on our understanding of the charity and the sector in which it operates, we identified the principal risks of non-compliance with laws and regulations related to the acts by the charity, which were contrary to applicable laws and regulations including fraud, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to inflated revenue and the charity's net income for the year.

Audit procedures performed included: review of the financial statement disclosures to underlying supporting documentation, review of correspondence with and reports to the regulators, including correspondence with the Charity Commission, review of correspondence with legal advisors and enquiries of management in so far as they related to the financial statements, and in testing of journals and evaluating whether there was evidence of bias by the trustees that represented a risk of material misstatement due to fraud.

There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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

Use of our report

This report is made solely to the company’s members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Roland Givans (Senior Statutory Auditor) for and on behalf of UHY Hacker Young 22 March 2023

Chartered Accountants Statutory Auditor

• 12 -

HOPE COMMUNITY FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2022

		Unrestricted	Restricted	Total	Unrestricted	Restricted	Total
		funds	funds	2022	funds	funds	2021
	Notes	£	£	£	£	£	£
Income from:
Donations and gifts	3	38,538	109,467	148,005	37,944	36,084	74,028
Charitable activities	4	309,356	-	309,356	235,895	-	235,895
Total income		347,894	109,467	457,361	273,839	36,084	309,923
Expenditure on:
Charitable activities	5	353,910	111,568	465,478	293,960	16,876	310,836
Net outgoing
resources before
transfers		(6,016)	(2,101)	(8,117)	(20,121)	19,208	(913)
Gross transfers
between funds		(60)	60	-	-	-	-
Net expenditure for	the
year/
Net movement in funds		(6,076)	(2,041)	(8,117)	(20,121)	19,208	(913)
Fund balances at 1
April 2021		(3,046)	19,208	16,162	17,075	-	17,075
Fund balances at 31
March 2022		(9,122)	17,167	8,045	(3,046)	19,208	16,162

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

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

• 13 -

HOPE COMMUNITY FOUNDATION

BALANCE SHEET

AS AT 31 MARCH 2022

		2022					2021
	Notes	£	£		£			£
Fixed assets
Tangible assets	11		26,054					30,979
Current assets
Debtors	12	17,355				4,905
Cash at bank and in hand		38,463			40,937
		55,818			45,842
Creditors: amounts falling due within
one year	14	(27,994)			(10,659)
Net current assets			27,824					35,183
Total assets less current liabilities			53,878					66,162
Creditors: amounts falling due after
more than one year	15		(45,833)					(50,000)
Net assets				8,045				16,162
Income funds
Restricted funds	16		17,167					19,208
Unrestricted funds				(9,122)				(3,046)
				8,045				16,162

The financial statements were approved by the Trustees on 22 March 2023

C Davies

Trustee

Company registration number 4489582

• 14 -

HOPE COMMUNITY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

Company information

Hope Community Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is The Hope Centre, Bernard Road, Sheffield, South Yorkshire, S2 5BQ.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 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)". 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 applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The accounts are prepared in sterling, which is the functional currency of the company. 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 Going concern

These financial statements are prepared on the going concern basis. The trustees have a reasonable expectation that the charity will continue in operational existence for the foreseeable future and has agreed significant ongoing support from its parent over the next year. However, the trustees are aware of certain material uncertainties which may cause doubt on the charity's ability to continue as a going concern. These uncertainties remain largely outside of the immediate control of the charity and centre around challenges facing early-years education on a national level which comprises the majority of the income of the charity. The charity is playing an active part in representing the sector where appropriate to effect positive change at local and national level.

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.

1.4 Incoming resources

Grants and voluntary income comprising gifts, donations and other forms of income, including grants for the purchase of fixed assets, are recognised in full in the Statement of Financial Activities in the year in which they are receivable, except insofar as they are incapable of financial measurement.

The value of services provided by volunteers has not been included.

Grants are recognised in full in the Statement of Financial Activities in the year in which they are receivable.

• 15 -

HOPE COMMUNITY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

(Continued)

Income is measured at the fair value of the consideration received or receivable and represents amounts receivable for services provided in the normal course of business.

1.5 Resources expended

Resources expended are recognised in the year in which they are incurred inclusive of irrecoverable VAT.

Charitable expenditure comprises costs incurred by the charity in the delivery of its activities and includes costs that can be allocated directly to such activities and costs of an indirect nature to support them.

Grants for other charitable activities are made at the discretion of the trustees and are recognised in the year in which they are made.

Governance costs are those incurred in connection with the administration of the charity and compliance with constitutional and statutory requirements.

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.

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:

Leasehold buildings Straight line over the period of the lease Fixtures, fittings & equipment 20% straight line

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.

Fixed assets costing less than £500 are not capitalised.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible and intangible 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.

• 16 -

HOPE COMMUNITY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

(Continued)

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/(expenditure) for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8 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.

1.9 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.

• 17 -

HOPE COMMUNITY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

(Continued)

Impairment of financial assets

Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.

If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including trade and other payables, 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Accounts 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 payables 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.

1.10 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.

1.11 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

• 18 -

HOPE COMMUNITY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

(Continued)

1.12 Leases

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the directors 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. There are no judgements or estimates which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.

3 Donations and gifts

	Unrestricted	Unrestricted	Restricted	Total	Unrestricted	Restricted	Total
	funds		funds		funds	funds
	2022		2022	2022	2021	2021	2021
	£		£	£	£	£	£
Donations and gifts	32,993		109,467	142,460	2,300	36,084	38,384
Government grants		5,545	-	5,545	35,644	-	35,644
	38,538		109,467	148,005	37,944	36,084	74,028
Grants receivable for
core activities
Coronavirus Job
Retention Scheme		3,140	-	3,140	35,644	-	35,644
HMRC SSP Grant		655	-	655	-	-	-
Bounce back loan
interest grant		1,250	-	1,250	-	-	-
Charity Aid Foundation		500	-	500	-	-	-
		5,545	-	5,545	35,644	-	35,644

• 19 -

HOPE COMMUNITY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

4 Charitable activities

	Nursery fees	Cafe sales	Total	Total
	and catering income		2022	2021
	£	£	£	£
Sales within charitable activities	296,232	13,124	309,356	235,895

• 20 -

HOPE COMMUNITY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

5 Charitable activities

	Pre-school	Community	Community	Total	Pre-school	Pre-school	Community	Community	Total
	nursery	based		2022	nursery		based		2021
	education	activities			education		activities
	£	£		£	£		£		£
Staff costs	256,392	90,478		346,870	212,908			6,760	219,668
Depreciation and
impairment	6,497		-	6,497		7,100		-	7,100
Rent	35,766	14,203		49,969	34,075			-	34,075
Insurance	1,581		-	1,581		1,558		-	1,558
Cleaning	1,485		36	1,521		1,845		-	1,845
Printing, postage and
stationery	3,717		158	3,875		608		784	1,392
Staff training	948		268	1,216		1,524		137	1,661
Catering costs	12,636		1,270	13,906		4,401		8,106	12,507
Legal and professional
fees	11,166		477	11,643	10,070			3	10,073
Bad and doubtful debts	(104)		-	(104)		3,964		-	3,964
Sundry expenses	10,574		1,846	12,420		6,861		400	7,261
Advertising	2,228		157	2,385		1,026		-	1,026
Repairs and maintenance	2,382		1,918	4,300		2,602		808	3,410
Educational activities	4,023		757	4,780		3,337		137	3,474
Bank charges	4,139		-	4,139		1,342		-	1,342
	353,430	111,568		464,998	293,221		17,135		310,356
Share of governance costs
(see note 7)	480		-	480		480		-	480
	353,910	111,568		465,478	293,701		17,135		310,836
Analysis by fund
Unrestricted funds	353,910		-	353,910	293,701			259	293,960
Restricted funds	-	111,568		111,568		-	16,876		16,876
	353,910	111,568		465,478	293,701		17,135		310,836

• 21 -

HOPE COMMUNITY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

6 Description of charitable activities

Pre-school nursery education

The charity runs a children's nursery providing pre-school childcare and education.

Community based activities

The charity runs community based activities to relieve poverty, including food poverty, and loneliness within the local community.

7 Support costs

Support costs
	Support		Governance	2022		2021
	costs		costs
	£		£	£		£
Audit fees		-	480		480		480
		-	480		480		480
Analysed between
Charitable activities		-	480		480		480

Governance costs includes payment to the auditor of £480 for audit fees (2021: £480 for audit fees). Other costs includes payments to the auditor of £2,100 (2021: £1,800) for other services.

8 Trustees

C Davies together with his wife controls another company that during the year received payments totalling £1,512 (2021: £1,389) for payroll services.

None of the other trustees (or any persons connected with them) received any remuneration or any other benefits from employment with the charitable company and no trustee expenses have been incurred in the year (2021: none).

• 22 -

HOPE COMMUNITY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

9 Employees

Number of employees

The average monthly number of employees during the year was:

	2022	2021
	Number	Number
Staff	25	17
Trustees	7	5
	32	22
Employment costs	2022	2021
	£	£
Wages and salaries	329,174	204,316
Social security costs	11,296	10,215
Other pension costs	6,400	5,137
	346,870	219,668

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

10 Taxation

In view of the charitable objects of the company and of its registered charity status, no taxation should be payable.

• 23 -

HOPE COMMUNITY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

11	Tangible fixed assets
		Leasehold		Fixtures, fittings		Total
		buildings		& equipment
		£		£		£
	Cost
	At 1 April 2021	122,768			20,769	143,537
	Additions		-		1,572		1,572
	At 31 March 2022	122,768			22,341	145,109
	Depreciation and impairment
	At 1 April 2021	93,112			19,446	112,558
	Depreciation charged in the year		5,409		1,088		6,497
	At 31 March 2022	98,521			20,534	119,055
	Carrying amount
	At 31 March 2022	24,247			1,807		26,054
	At 31 March 2021	29,656			1,323		30,979
12	Debtors
				2022		2021
	Amounts falling due within one year:			£		£
	Trade debtors				5,963		4,098
	Other debtors				11,392		807
				17,355			4,905
13	Loans and overdrafts
				2022		2021
				£		£
	Bank loans			50,000			50,000
	Payable within one year				4,167		-
	Payable after one year			45,833			50,000

The long-term loan is secured as part of the cross guarantee arrangement for the bank loan held by C3 Trust UK as described in note 18.

• 24 -

HOPE COMMUNITY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

14 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
		2022	2021
	Notes	£	£
Bank loans	13	4,167	-
Trade creditors		1,231	4,036
Amount owed to parent undertaking		16,461	1,688
Amounts owed to fellow group undertakings		78	78
Other creditors		2,465	1,453
Accruals and deferred income		3,592	3,404
		27,994	10,659
Creditors: amounts falling due after more than one year
		2022	2021
	Notes	£	£
Bank loans	13	45,833	50,000

15 Creditors: amounts falling due after more than one year

• 25 -

HOPE COMMUNITY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

16 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	Movement	in funds			Movement in	Movement in	funds
	Incoming		Resources	Balance at		Incoming	Resources	Transfers		Balance at
	resources		expended 1 April 2021			resources	expended			31 March
	£		£	£		£	£	£		2022 £
Henry Smith
Charity	16,550		(6,763)		9,787	33,100	(38,957)		-		3,930
Hope
Hampers	11,905		(10,113)		1,792	2,493	(947)		-		3,338
Neon
Schools
Programme	4,629		-		4,629	37		-	-		4,666
Befriending/
Jigsaw
Services	3,000		-		3,000	-	(1,681)		-		1,319
Kickstart		-	-		-	70,465	(68,415)		-		2,050
Polka Dot
Playgroup		-	-		-	500	(560)		60		-
Share the
Light		-	-		-	2,872	(1,008)		-		1,864
	36,084		(16,876)	19,208		109,467	(111,568)		60	17,167

The charity has received its second of a three year grant from the Henry Smith Charity. The grant has been awarded to assist with capacity building or projects and to strengthen the role of volunteering in the charity and has funded a Volunteer Coordinator for the whole of the period of the funding.

Various funders contributed to our efforts to tackle the impact of COVID-19 by providing emergency food provision through our Hope Hampers project up to April 2022 to those affected either directly or indirectly.

In order to contribute to a planned project working with young people in schools, funds were raised largely through Aviva Community Fund to the Neon Schools Programme. This project has not yet commenced during the year due to COVID-19 restrictions and the impact in schools but has commenced post year end with one person employed for one day a week.

Jigsaw services are now providing two weekly sessions for over 55s. Funds raised for the project in financial year 2020/21 are now being spent.

• 26 -

HOPE COMMUNITY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

16 Restricted funds

(Continued)

Kickstart provides work placements for young people. This project has completed post year end.

Polkadots play group has delivered weekly sessions during term time for over twenty two individuals.

To further meet the needs of the local communities and to strengthen the wider work of our food relief over the winter period we launched a small one-off campaign entitled 'Share the Light' in December 2021.

17 Analysis of net assets between funds

	Unrestricted	Restricted funds	Restricted funds	Total	Unrestricted	Restricted funds	Restricted funds	Total
	funds				funds
	2022		2022	2022	2021		2021	2021
	£		£	£	£		£	£
Fund balances at 31
March 2022 are
represented by:
Tangible assets	26,054		-	26,054	30,979		-	30,979
Current
assets/(liabilities)	10,657		17,167	27,824	15,975		19,208	35,183
Long term liabilities	(45,833)		-	(45,833)	(50,000)		-	(50,000)
	(9,122)		17,167	8,045	(3,046)		19,208	16,162

18 Financial commitments, guarantees and contingent liabilities

Hope City Foundation along with Hope Centre Limited cross guarantee a bank loan held by C3 Trust UK. At 31 March 2022, the bank loan amounted to £727,461 (2021: £784,294) and is due to mature on 27 November 2033.

19 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

	2022	2021
	£	£
Aggregate compensation	11,893	15,336

The trustees review payments made to employees in equivalent managerial positions in similar organisations when considering the levels of pay for key managers. The trustees also take in to consideration the ability of the charitable company to be able to pay such salaries.

• 27 -

HOPE COMMUNITY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

19 Related party transactions

(Continued)

The company has taken advantage of the exemption from the requirement to disclose transactions with group companies on the grounds that any such transactions were entered into between the ultimate parent or wholly owned subsidiaries of the group and that group accounts are prepared.

20 Control

The ultimate controlling party is C3 Trust UK, formerly Hope City Church, a charitable company incorporated in the United Kingdom. C3 Trust UK control Hope Community Foundation as it is able to appoint and remove all the trustees of Hope Community Foundation. C3 Trust UK (being the smallest and largest group of which the charitable company is a member for which group financial statements are prepared) prepares group accounts and copies can be obtained from The Hope Centre, Bernard Road, Sheffield, South Yorkshire, S2 5BQ.

The parent's principal purposes are to advance the Christian faith, to relieve sickness and financial hardship and to advance education.

• 28 -