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2021-03-31-accounts

CHARITY REGISTRATION NUMBER 1119791 COMPANY REGISTRATION NUMBER 5999100

C3 TRUST UK

FORMERLY HOPE CITY CHURCH

GROUP ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

C3 TRUST UK

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees C Davies
P Benger
C W Davies
O Olarinde
A E Ibbotson (Appointed 10 June 2020)
M Muthiah (Appointed 25 November 2021)
J Hemmingfield (Appointed 25 November 2021)
Secretary A E Ibbotson
Charity number 1119791
Company number 5999100
Principal address The Megacentre
Bernard Road
Sheffield
South Yorkshire
S2 5BQ
Registered office The Megacentre
Bernard Road
Sheffield
South Yorkshire
S2 5BQ
Auditors UHY Hacker Young
6 Broadfield Court
Broadfield Way
Sheffield
South Yorkshire
S8 0XF
Bankers Barclays Bank plc
City Office
Sheffield
S1 1NG
Solicitors Geldards
Number One Pride Place
Pride Park
Derby
DE24 8QR

C3 TRUST UK

CONTENTS

Page
Trustees’ report 1 – 10
Statement of trustees’ responsibilities 11
Independent auditors’ report 12 – 15
Consolidated statement of financial activities 16 – 17
Statement of financial activities 18 – 19
Consolidated balance sheet 20
Balance sheet 21
Statement of cash flows 22
Notes to the accounts 23 – 46

C3 TRUST UK

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their report and consolidated accounts for the year ended 31 March 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity’s Memorandum and Articles of Association, the Companies Act 2006 “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 Articles of Association restrict the objectives of the Church to:

Under the broad objects of the charity, each church belonging to C3 Trust UK has been granted the autonomy, under a formal and agreed ‘Scheme of Delegation’, to define a vision for their local church which reflects their aspirations for their location and their church community.

All other charitable activities undertaken by the Church are to further the attainment of the above objectives.

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

Achievements and performance

C3 Trust UK Churches

Not unlike many churches globally, the effects of the COVID-19 pandemic have been significant. In addition to this, the pandemic has significantly disrupted church and organisational life as usual, and even at the time of this report our churches are still working in the long tail of this global phenomenon.

In addition to this, the charity has undergone significant upheaval, review, change and restructuring because of revelations which were brought to light shortly following the murder of George Floyd on 25 May 2020. Allegations of racial discrimination being present in the charity underpinned by evidence of what has been referred to as ‘dysfunctional’ or ‘toxic’ leadership culture led to the resignation of the Senior Ministers of the church in June 2020, the practical, financial, and legal separation of the church from City Hearts UK and the commissioning of an internal investigation led by Trustees and moderated by an external adviser and implemented under the guidance and instruction of Charity Commission, the results of which were published in February 2021.

C3 TRUST UK

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

These two driving factors, being the pandemic and internal investigation, have had a significant impact on attendance, membership and indeed the paradigm within which the church has operated. During this time, where ‘in-person’ gatherings were not permitted, it was almost impossible to determine the health of the church based on church attendance as a key measure. Our churches responded quickly to the pandemic by hosting online services and engaging with congregants online by more actively using social media platforms. More recently, for the most part we have returned to ‘in-person’ services whilst retaining an online presence for those unable to attend in-person. This has resulted in a steady, although not altogether unhindered, return of people to more traditional face-to-face or in-person gatherings.

Based on the data available at the time of this report our data suggests that overall attendance or record of membership as of 31 March 2021 was approximately 2000 people and approximately 1900 people as of November 2021. This excludes the combined membership of former Hope City churches located in Birmingham, Accra, London, Frankfurt, Darmstadt and Kuala Lumpur.

After extensive discussions with Hope City Birmingham Lead Pastors and local members, Trustees agreed to wind down the church in November 2020. At the time of closure, it was estimated that membership sat at 120 people with a similar membership at the time of closure.

After a process of due diligence and consultation, Trustees agreed to release Hope City Accra, Hope City Frankfurt, Hope City Darmstadt, and Hope City Kuala Lumpur from its direct oversight, with all churches becoming independent C3 churches with their own governance in place as of 31 March 2021. At the time of transition, we estimate combined membership to be in the region of 1300 people.

Hope City London (now C3 Reflect) was also released to form its own independent C3 Church from July 2021 under its own charity governance with an estimated membership of 150 people at that time, with 100 attending online services.

In each case, Trustees were satisfied, through its due diligence, that these decisions were made in the best interest of the C3 Trust UK moving forwards, and of the respective churches themselves.

Despite the clear and present challenges facing churches over this period, churches have succeeded in moving forward in a number of key areas.

Many of our churches have sought to maintain or even increase their social action to support their local communities, either directly through the church, through the work of Hope Community Foundation in Sheffield, or working closely with partner charities such as Project Hope in Leeds.

In addition, many have successfully run a number of online (and more recently in person) Alpha courses, which have had an encouraging attendance in seeking to introduce people to the Christian faith.

The past 12 months in particular, has also created an opportunity to re-establish, galvanise, and strengthen local church leadership teams and begin to rethink wider volunteering, bringing greater collaboration, transparency, and accountability. It has also empowered Lead Pastors to begin to allow vision and values for their local church and their community to emerge, and to seek to bring something unique through their own ministry gifting and calling. This, and other positive changes, have helped to begin to build a solid foundation for the furtherance of the mission of the charity in the future.

C3 TRUST UK

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Investigation & Improvements

Between June 2020 and February 2021, the charity commissioned and undertook an internal investigation to explore the degree to which racism had been or was present, and how this had been impacted by a leadership culture which had been described as ‘toxic’. This process was led by Trustees but informed and critiqued by an independent external adviser, previously unknown to the charity.

Following extensive consultation with present and former church members and staff, a report was compiled and published in February 2021 which highlighted a number of themes and recommended actions around each theme. The themes were:

  1. Racial Discrimination

  2. Leadership Culture

  3. Community Culture

  4. Accountability & Decision Making

  5. Financial Management

  6. Governance & Compliance

From the recommendations, a Change & Improvement Plan has been compiled and is currently being implemented at local and Trustee levels. As a result, positive change has been made to adequately resource key areas of need such as Human Resources, Compliance and Financial Management. With this resource in place the charity has made significant headway in strengthening key policy and practice particularly in relation to financial reporting, Governance, Risk, Equality & Diversity, Safeguarding, Whistleblowing, Recruitment & Selection & good practice relating to People Management in general.

Initial and ongoing training of Trustees and Key Leaders has been foundational in responding to the report and guiding cultural change and practice, with all Lead Pastors and many of their Leadership Teams engaging in diversity training and ongoing involvement and training around creating a stronger focus on ‘wellbeing’ through our Safeguarding policy and processes.

Structural change has included the formation of an Executive Board and the appointment of a Chief Executive Officer to work under the delegated authority of Trustees (detailed in an agreed Scheme of Delegation) and the strengthening of the relational link with C3 Global particularly in Europe, with a clear remit to provide Spiritual Oversight for Lead Pastors; a role which complements the role of Trustees in governing and overseeing the work of the charity.

Development Reviews with Lead Pastors have highlighted their individual commitment to establish and grow healthy, Christ-centred church culture which focuses on wellbeing, openness and transparency, authentic relationships and a strong sense of community as well as ensuring adherence to the central tenets of the Christian faith, including the call to both be disciples and to make disciples as exemplified by Jesus, together with the vital role of prayer.

At local church level, church leaders have made progress around the charity’s commitment to Diversity, with generally greater representation, voice and influence being evident from people of colour and different ethnic backgrounds.

However, the past 18 months has been a considerable challenge for churches as congregations responded to the allegations and the subsequent investigation. This was a time of contrition for Leaders, but also of intense pressure in not only trying to manage impact at local level, but personally navigate this season at the same time as reflecting on the practical implementation of change and all this would entail.

C3 TRUST UK

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

We recognise that this is very much an ongoing development journey for the charity which is being led both by individual commitment from its Trustees and leadership and by the Change & Improvement plan arising from the charity’s report published in February 2021. In this sense, we recognise the need to maintain the momentum around change through the work of Trustees and the Executive Board.

Trustees remain hopeful that the considerable amount of hard work and prayer which has been invested into change will continue to bear fruit across all of our churches.

C3 Trust UK Property

As of March 2021 and having successfully completed the sale of their property at 89 Beaumont Rd Nth, Sheffield, and the full and final settlement of associated loans, C3 Trust UK own one building to house its work and ministry and that of its affiliated organisations.

The Sheffield Megacentre, recently renamed The Hope Centre, is a 54,000 ft[2] building which is the home of C3 Hope and comprises a large auditorium and overflow facility (‘The Forge’ with seating capacity for over 150 people) as well as varied and extensive conferencing and training rooms, lettable and dedicated office space, a community hub and café. In the financial year to which these accounts relate, the use of the building for conferencing continued to perform better than expected despite the impact of the pandemic and was used extensively to support the effort to train those involved in combatting the effects of COVID-19.

As part of the process of formal separation, City Hearts UK relocated their Sheffield operation having been located in what was the Megacentre since their formation. As a result of this and other factors including COVID-19, the building is being repurposed through the work of C3 Trust UK’s Sheffield Church, C3 Hope, Hope Community Foundation and Megacentre Limited. The building will continue to house a mixture of church, community and commercial activities designed to deliver church health and growth, social value and longer-term financial sustainability for the building and the church.

Despite recent challenges largely brought on by the global pandemic, the building has continued to provide a means to deliver a number of much needed community projects. These have included our partnership with The Message Trust, a Christian Charity based in the Northwest of England whose objects are closely aligned with those of C3 Trust UK. The Foundation Community Grocery with more than 700 members, provides affordable food for local people in need. This partnership creates social value amongst areas that experience acute deprivation and disadvantage.

As a result of a significant organisational restructure and review, Trustees are no longer exploring ideas to purchase land in Sheffield or to build at Waverley and are focusing all efforts on maintaining and developing current facilities to drive forward the local mission of the church. At this point the charity has entered into dialogue with Charity Commission around the repurposing of funds which were raised for the Waverley Appeal. This process has been undertaken under strict advice and guidance from both our legal advisers and Charity Commission. The intention remains to repurpose remaining funds towards a vision to invest in the Hope Centre facility. We hope that this process will conclude successfully at some point in the 2022/23 Financial Year.

C3 Trust UK continues to seek external funding to support the ongoing maintenance and upkeep of the Hope Centre and aims to commence Phase 1 of these works before March 2023 subject to both fundraising success and the successful reallocation of funds raised for Waverley.

C3 TRUST UK

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

During this financial year, C3 Newcastle, C3 Sunderland, and C3 Liverpool have continued to service leases on properties which they have adapted to one extent or another to meet the needs of the church. These leases, in the cases of C3 Newcastle and C3 Liverpool have represented a significant ongoing cost to these local churches despite not being fully utilised during the pandemic. In the case of the C3 Liverpool premises on Kempston Street, Liverpool, the loss of the sole tenant in their building has continued to represent a challenge to C3 Liverpool although continued efforts are being made to identify a new tenant for approximately 14,000 ft[2] of the building.

For those churches who have had not needed meeting facilities during periods of national lockdown, they have, until recently met online only, and absorbed the cost savings usually associated with building hire. Over recent months, ‘in-person’ services have started to increase as COVID-19 restrictions have begun to ease. This is seen very much as a positive step towards re-gathering the church, re-establishing connections, and rebuilding community, however as with other churches across the world, this is uncharted territory for churches and for church leaders.

Annual Giving

Unlike previous years, each location undertook just one separate giving campaign in addition to regular giving. Historically, a further offering has consistently and collectively taken place, that went towards the central running costs of the church, as well as other external global Christian missions. As a result of continued transition, together with an enhanced local identity in each location, this central offering no longer takes place.

Previously, all Hope City Church locations included an annual ‘Dream Offering’ each year which continued in the financial year 2020-2021 and largely went towards building and venue costs for each location, except for the Sheffield location which focused on restricted funds for the Waverley project, vision centres and more recently, specifics within main account sustenance. The Dream Offering that was collected in the Birmingham location between April 2020 – November 2020 was returned to each donor at the end of November 2020 as part of plans to close this location.

From April 2021, most locations have continued with an additional, mostly unrestricted annual offering in the form of a ‘Vision Builders’ or ‘Heart for the House’ campaign. This separate offering varies with each church, but continues to mostly cover building and venue costs, local missions, and ministries as well as funding other usual and general local church activities.

For each annual campaign the giving consists of one-off donations, standing orders and financial pledges.

Staffing

At the beginning of the financial period, Gross Monthly Pay on salaries for C3 Trust UK was £54,813 for 39 people working on either a full time or part time basis. By the end of the financial period in March 2021 this had decreased to £43,149 employing 32 people.

As a result of improved governance and structure during the financial year 2020-2021, salary bands came into effect for all C3 Trust UK staff and this process continues to make significant developments whilst adhering to appropriate HR advice and guidance.

C3 TRUST UK

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Subsidiary and other controlled companies

The achievements and performance of the church’s subsidiaries and other controlled companies for the year ended 31 March 2021 were as follows:

Financial review

The trustees make strategic decisions based on the financial position of the church by reference to the financial information (i.e. budgets, cash flows) provided to them. They do not however carry out the routine day to management of the church, for which the budget leader for each department is responsible.

The Statement of Financial Activities shows a net increase in funds of £110,457 (2020: £143,756). The church has general unrestricted reserves of £774,135 excluding the revaluation reserve, compared with £682,769 the previous year. The trustees have identified that the reserves are at a low level, representing more than 73% (including the revaluation reserve) of annual net resources expended (2020: 47%). This percentage is much higher than the previous year. The freely available unrestricted reserves were £49,099.

The Consolidated Statement of Financial Activities shows a net decrease in funds of £1,728,706 (2020: increase in funds of £664,637). The net decrease in funds includes £1,846,492 relating to City Hearts (UK) on leaving the group. The group has general unrestricted reserves of £1,431,407 excluding the revaluation reserve, compared with £3,173,346 the previous year. The trustees have identified that the reserves are at a low level, representing more than 31% (including the revaluation reserve) of annual net resources expended (2020: 36%). The freely available unrestricted reserves were £38,352.

The financial results for the subsidiary entities are shown in note 27 to the accounts.

Reserves

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained as a level equivalent to between three and six months expenditure. The trustees consider the reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised.

As of November 2021, C3 Trust UK has £402,653 held in a treasury account with Kingdom Bank. This is funds collected from the Waverley Dream Offering and has been kept for future restricted use. Working alongside the Charity Commission, the Trustees continue to progress with the re-evaluation and potential redistribution of this fund. As a result of COVID-19 and various other setbacks, this process continues to experience significant delays.

C3 Trust UK policy in general is to also work towards building three months’ worth of cash reserves.

C3 TRUST UK

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Recent investments

Given the more recent history and learning which has taken place across the Charity, significant attention and investment has been devoted to health and wellbeing and towards strengthening organisational infrastructure. As well as supporting church leaders and many of their teams through their own journey the Charity has continued to invest in building and strengthening policy and procedure particularly as it related to the safeguarding of staff, volunteers, and the wider congregations. Whilst this is very much a work in progress, policies have been developed to address evident weaknesses in particular employment processes, Equality Diversity & Inclusion and Safeguarding in its wider definition, seeking to elevate the priority and importance of applying people centred policy from the most senior level.

This has been a significant accomplishment, with limited resources and during a period of considerable challenge brought about largely by the COVID-19 pandemic.

Trustees remain committed to investing in change and improvement which will manage risk, promote shared values and healthy culture and provide a sound basis for the future for everyone who has found their home in our churches irrespective of the future structure of the Charity itself.

This is reflected specifically in an intentional and coordinated approach to role-related training and development with learning needs being identified systematically and a programme of training interventions being developed to meet those needs

Goals and Developments

Last year the Charity embarked on a journey of substantial change, structurally and organisationally. A fundamental part of this has been the intentional empowerment of local churches under a new operational model where Lead Pastors have both greater autonomy and responsibility for local decision making and strategy making. Lead Pastors and local churches are at very different stages of this journey of development, largely influenced by local transitional factors, church strength and overriding risk but are nevertheless making progress to more locally define future plans. Local churches remain accountable, under our current model of governance, to Trustees in order to ensure that local mission, vision, strategy and values are aligned to the overall objects of the Charity and risk is managed and monitored effectively.

There is a concerted effort to outwork an expansive vision for social action at a local level with C3 Hope and C3 YRKS being more established in this field. Any plans will be commensurate with local community vision and the strength of the local church to underpin and resource social action through people, finance, and premises where appropriate.

However, the significant or primary focus for all churches is to define what has been coined as the ‘new normal’ coming out of the disruption experienced in the past 18 months. A key focus is on cultural change, leading pastorally, re-gathering people, connections, relationships and a sense of corporate family which have been affected since 2020, and developing the primacy of the role of discipleship within the context of the local church.

There are no plans currently to directly acquire (either by purchase or lease) additional property for the use of the Charity in the short to medium term. However, plans for undertaking essential structural maintenance work to the Hope Centre in Sheffield are underway and expected to commence in the coming months, subject to funding confirmations.

In addition, all churches still face challenges associated with the impact of COVID-19 and Trustees are working closely in collaboration with all our churches to manage risk and ensure safe passage through this season.

C3 TRUST UK

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

The newly reformed CRS department has been instrumental in working alongside, resourcing and supporting the work of local churches and taking the lead of change and improvements relating to aspects of policy and practice with input of both Trustees and the Executive Board.

Equally, the role of C3 in Europe acting as Spiritual Oversight is well established and welcomed amongst Lead Pastors. The role of C3 as a relational network, providing peer-to-peer pastoral care, support and guidance has been greatly valued and appreciated and will continue to complement the work of Trustees.

The Charity is also currently undertaking a consultation primarily with or through Lead Pastors to explore the most appropriate operating model for the future, to understand the implications and timescales associated with a movement from the current model of autonomy towards one in which churches would be able to operate independently and under their own governance and legal structures. The objective in the next year is to establish the case for change, and to create a road map for transition ensuring that change is managed in line with the fiduciary responsibilities held by Trustees and in view of the future vision, strength and capacity of the local churches.

Structure, Governance and Management

C3 Trust UK is a company limited by guarantee and a registered charity. The Company was incorporated on 15 November 2006 and commenced activities on 1 April 2007 when it took over the assets, liabilities and running of the Church. C3 Trust UK was formerly Hope City Church until its change of name was approved by Charity Commission on 23 September 2021.

The Trustees, who are also directors for the purpose of company law, and who served during the period are:

C Davies D A Gilpin (Resigned 21 June 2020) P Benger C W Davies O Olarinde J Greenow (Resigned 7 May 2021 A E Ibbotson (Appointed 10 June 2020) M Muthiah (Appointed 25 November 2021) J Hemmingfield (Appointed 25 November 2021)

C3 TRUST UK

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

C3 Trust UK is a registered charity which governs a group of churches now exclusively in the UK as of April 2021. Each church has been affiliated with C3 Church Global since 2013 and all seek spiritual oversight from C3 whilst being accountable in charity and company terms to the trustees and directors of C3 Trust UK as an independent and autonomous organisation. Each church belonging to C3 Trust UK has its own local identity.

C3 Global is a worldwide community of Christian churches that come together as one movement under the direction and leadership of C3 Church Global Directors and their Team.

In accordance with both the charity’s governing documents and C3’s recommendations, there are at least three Managing Trustees at any one time and Trustees who are not on the charity’s payroll should be in the majority. None of the Trustees have any beneficial interest in the company. All the Trustees are also the Members of the company and guarantee to contribute £1 in the event of a dissolution or winding up. Following recent recommendations, when a Trustee vacancy occurs, potential candidates with the relevant experience, skill set, and expertise will be identified and discussed at Board meetings. Once this process has taken place, one of the Trustees will then approach the prospective candidate, with further due diligence taking place before any official appointment is made.

The Trustee’s review payments made to employees in similar managerial positions in other churches and similar organisations when considering the levels of pay for key managers. The Trustees also take into consideration the ability of the charitable company to be able to pay such salaries.

C3 Trust UK is a registered charity (number 1119791), and a company limited by guarantee (number 5999100).

Megacentre Limited is a wholly owned trading subsidiary of C3 Trust UK and operates to both generate funds to resource the wider mission of C3 Trust UK and to deliver the non-primary purpose trading of the charity.

Hope Community Foundation, a company limited by guarantee with separate charitable objects and status is also connected with C3 Trust UK. With its primary focus of operation and area of benefit in Sheffield at the time of this report, it operates an Ofsted Registered Early Years Day Nursery on the Sheffield church premises and a number of community projects intended to deliver the social mission of C3 Trust UK and more specifically its church in Sheffield, C3 Hope.

C3 TRUST UK

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Hope Community Foundation has continued to deliver much needed services to the local community in Sheffield throughout the period of the COVID-19, including through its community nursery, recently rebranded as Little Ark Nursery (September 2021) and through a growing number of community projects which since the relaxation of lockdowns have now begun to gain momentum. The addition of a Community Grocery in April 2021, partnering with The Message Trust (Charity Number 1081467) shortly followed by the launch of Hope Hampers Food Bank, partnering with the S6 Foodbank Network in Sheffield have both added significantly to the social impact delivered under the Foundation. In addition, and more recently projects such as Polka Dots Play Group and Jigsaw Café have helped the charity to restart its support for young families and the elderly respectively. The recent launch of the Foundation Café, a ‘Pay what you feel’ project, aims to provide a connection point from which the social value created through each project can be compounded for beneficiaries.

As a whole, the Trustees have identified and assessed the major risks to which C3 Trust UK is exposed and are satisfied that the mitigation and systems are in place to limit exposure to these risks. This forms part of other improvements made by Trustees to reflect the feedback gained from its internal investigation which was commissioned between June 2020 and February 2021 referred to earlier in this report.

Disclosure of Information to Auditors

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 auditors are aware of such information.

On behalf of the Board of Trustees

C Davies Trustee

Dated: 24 January 2022

C3 TRUST UK

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2021

The trustees, who are also the directors of C3 Trust UK 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 charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that year.

In preparing these accounts, the trustees are required to:

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

6 Broadfield Court Broadfield Way Sheffield S8 0XF

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS AND TRUSTEES OF C3 TRUST UK

Opinion

We have audited the financial statements of C3 Trust UK (the ‘charitable company) for the year ended 31 March 2021 which comprise the consolidated Statement of Financial Activities, the parent Statement of Financial Activities, the consolidated Balance Sheet, the parent Balance Sheet, the consolidated Statement of Cash Flows, the parent Statement of Cash Flows and the notes to the accounts, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the accounts:

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 accounts section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the accounts 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.

Conclusion relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF C3 TRUST UK (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:

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:

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF C3 TRUST UK (CONTINUED)

Responsibilities of the trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charitable company 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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, 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.

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF C3 TRUST UK (CONTINUED)

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 charitable company’s members, as a body, in accordance with Chapter 3 of the Part 16 of the Companies Act 2006. Our audit work has been undertaken, so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purposes. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

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

24 January 2022

Chartered Accountants Statutory Auditor

C3 TRUST UK

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted Restricted Total Unrestricted Restricted
funds funds 2021 funds funds
Notes £ £ £ £ £
Income from:
Donations and gifts
3
1,323,936
285,950
1,609,886
1,758,289
550,290
Charitable activities
4
481,188
-
481,188
6,547,316
-
Other trading activities
5
25,810
-
25,810
103,666
-
Investments
6
2,374
-
2,374
662
3,275
Other income
7
842
-
842
852
-
Total income
1,834,150
285,950
2,120,100
8,410,785
553,565
Expenditure on:
Raising funds
8
73,016
849
73,865
139,835
31,391
Charitable activities
9
1,681,647
229,900
1,911,547
7,488,267
637,920
Other
14
-
-
-
2,300
-
Grant paid to City Hearts (UK)
10
1,846,492
-
1,846,492
-
-
Total expenditure
3,601,155
230,749
3,831,904
7,630,402
669,311
Net incoming/(outgoing) resources before
associated undertakings and transfers
(1,767,005)
55,201
(1,711,804)
780,383
(115,746)
Gross transfers between funds
-
-
-
(30,093)
30,093
Net incoming/(outgoing) resources
(1,767,005)
55,201
(1,711,804)
750,290
(85,653)
Other recognised gains and losses
Revaluation of tangible fixed assets
(16,902)
-
(16,902)
-
-		 Total
2020
£
2,308,579
6,547,316
103,666
3,937
852
8,964,350
171,226
8,126,187
2,300
-
8,299,713
664,637
-
664,637
-

C3 TRUST UK

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted Restricted Total Unrestricted Restricted
funds funds 2021 funds funds
Notes £ £ £ £ £
Net movement in funds
(1,783,907)
55,201
(1,728,706)
750,290
(85,653)
Fund balances at 1 April 2020
2,969,151
429,562
3,398,713
2,218,861
515,215
Fund balances at 31 March 2021
1,185,244
484,763
1,670,007
2,969,151
429,562		 Total
2020
£
664,637
2,734,076
3,398,713

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.

C3 TRUST UK

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted Restricted
funds funds
Notes £ £
Income from:
Donations and gifts
3
1,277,845
249,866
Charitable activities
4
279,868
-
Other trading activities
5
1,582
-
Investments
6
2,374
-
Other income
7
842
-
Total income
1,562,511
249,866
Expenditure on:
Raising funds
8
16,175
849
Charitable activities
9
1,428,020
213,024
Other
14
26,950
-
Total expenditure
1,471,145
213,873
Net incoming resources before transfers
91,366
35,993
Gross transfers between funds
-
-
Net incoming/(outgoing) resources
91,366
35,993
Other recognised gains and losses
Revaluation of tangible fixed assets
(16,902)
-
Net movement in funds
74,464
35,933		 Total Unrestricted Restricted
2021 funds funds
£ £ £
1,527,711
1,719,786
491,515
279,868
351,202
-
1,582
22,670
-
2,374
105
3,275
842
446
-
1,812,377
2,094,209
494,790
17,024
14,557
31,391
1,641,044
2,012,427
356,018
26,950
30,850
-
1,685,018
2,057,834
387,409
127,359
36,375
107,381
-
143,794
(143,794)
127,359
180,169
(36,413)
(16,902)
-
-
110,457
180,169
(36,413)		 Total
2020
£
2,211,301
351,202
22,670
3,380
446		 Total
2020
£
2,211,301
351,202
22,670
3,380
446
2,588,999
45,948
2,368,445
30,850

2,445,243
143,756
-
143,756
-
143,756

C3 TRUST UK

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted Restricted
funds funds
Notes £ £
Fund balances at 1 April 2020
1,163,204
429,562
Fund balances at 31 March 2021
1,237,668
465,555		 Total Unrestricted Restricted
2021 funds funds
£ £ £
1,592,766
983,035
465,975
1,703,223
1,163,204
429,562		 Total
2020
£
1,449,010
1,592,766

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.

C3 TRUST UK

CONSOLIDATED BALANCE SHEET

AS AT 31 MARCH 2021

Notes
Fixed assets
Tangible assets
15
Current assets
Stocks
16
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within
one year
18
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
one year
19
Net assets
Income funds
Restricted funds
22
Unrestricted funds:
Retained within the charity
Revaluation reserve
Non-charitable trading funds		 2021
£
£
1,981,186
150
51,539
726,889
778,578
(308,514)
470,064
2,451,250
(781,243)
1,670,007
484,763
1,431,407
359,525
1,790,932
(605,688)
1,670,007		 2020
£
£
2,542,243
1,050
944,524
1,290,740
2,236,314
(450,978)
1,785,336
4,327,579
(928,866)
3,398,713
429,562
3,173,346
376,427
3,549,773
(580,622)
3,398,713

The financial statements were approved by the board of directors and authorised for issue on 24 January 2022 and are signed on its behalf by:

C Davies Trustee

Company Registration No. 5999100

C3 TRUST UK

BALANCE SHEET

AS AT 31 MARCH 2021

Notes
Fixed assets
Tangible assets
15
Current assets
Stocks
16
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within
one year
18

Net current assets
Total assets less current liabilities
Creditors: amounts falling due in more
than one year
19
Net assets
Income funds
Restricted funds
22
Unrestricted funds:
General unrestricted funds
Revaluation reserve		 2021
£
£
1,979,863
100
45,019
685,835
730,954
(276,351)

454,603
2,434,466
(731,243)
1,703,223
465,555
774,135
463,533
1,237,668
1,703,223		 2020
£
£
2,078,564
1,000
100,625
492,282
593,907
(320,348)
273,559
2,352,123
(759,357)
1,592,766
429,562
682,769
480,435
1,163,204
1,592,766

The financial statements were approved by the board of directors and authorised for issue on 24 January 2022 and are signed on its behalf by:

C Davies

Trustee

Company Registration No. 5999100

C3 TRUST UK

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2021

Notes
Cash flow from operating activities
Cash generated from operations
28
Investing activities
Purchase of tangible fixed assets

Proceeds on disposal of tangible fixed assets
Interest received
Net cash (used in)/ generated from
investing activities
Financing activities
Proceeds of new bank loans
Repayment of bank loans

Net cash (used in)/generated from
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
Cash flows from operating activities
Cash generated from operations
28
Investing activities
Purchase of tangible fixed assets

Proceeds on disposal of tangible fixed assets
Interest received
Net cash (used in)/ generated from
investing activities
Financing activities
Repayment of bank loans

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		 Group
2021
2020
£
£
£
£
(546,082)
621,819
(43,597)
(542,792)
842
446
2,374
3,937
(40,381)
(538,409)
50,000
-
(27,388)
(58,430)
22,612
(58,430)
(563,851)
24,980
1,290,740
1,265,760
726,889
1,290,740
Charity
2021
2020
£
£
£
£
261,322
369,817
(43,597)
(480,064)
842
446
2,374
3,380
(40,381)
(476,238)
(27,388)
(51,556)
(27,388)
(51,556)
193,553
(157,977)
492,282
650,259
685,835
492,282

C3 TRUST UK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

Company information

C3 Trust UK, formerly Hope City Church, is a private company limited by guarantee incorporated in England and Wales. The registered office is The Megacentre, Bernard Road, Sheffield, S2 5BQ.

1.1 Accounting convention

The accounts 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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The accounts are prepared in sterling, which is the main functional currency of the company. The charity also has Ghanaian Cedi and Malaysian Ringgit as functional currencies. Monetary amounts in these financial statements are rounded to the nearest £.

The accounts have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and leasehold properties. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the accounts, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. In making that assessment, the trustees have specifically considered the impact of the coronavirus on the operations of the charity, alongside actions taken to mitigate that impact. Thus the trustees continue to adopt the going concern basis of accounting in preparing the accounts.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

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 accounts.

1.4 Incoming resources

Voluntary income is received by way of donations and gifts and is included in full in the Statement of Financial Activities when receivable except insofar as they are incapable of financial measurement. Gifts donated for resale are included as income when they are sold. Donated assets are included at the value to the charity where this can be quantified and a third party is bearing the cost. The value of services provided by volunteers has not been included.

Grants, 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.

Rental income, income from the sale of resources, investment income and income from charitable activities is included in the year in which it is receivable.

Turnover from Megacentre Limited activities represents amounts receivable for goods and services net of VAT.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

C3 TRUST UK

1.5 Resources expended

Resources expended are recognised in the year in which they are incurred.

Charitable activities comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes grants made to projects, costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Costs of generating funds relate to costs incurred by trading subsidiaries.

Grant expenditure is included based on the date that individual projects’ expenditure has been incurred, rather than the date that the grants are defrayed to the projects.

Governance costs included those costs associated with meeting constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity.

All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource, and include irrecoverable VAT.

Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of the resources.

1.6 Tangible fixed assets and depreciation

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following basis:

Freehold property - 2% straight line
Leasehold buildings - 2%/ 33% straight line
Fixtures, fittings and equipment - 20%/ 33.33% straight line
Motor vehicles - 25% 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 net income/(expenditure) for the year.

Fixed assets costing less than £500 are not capitalised.

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/ (expenditure) for the year. Transaction costs are expensed as incurred.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8 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.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

C3 TRUST UK

1.8 Impairment of fixed assets (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.

1.9 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 at 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 Leasing and hire purchase commitments

Rentals payable under operating leases are charged against income on a straight line basis over the period of the lease.

1.11 Pensions

The charity operates a defined contribution pension scheme. Contributions are charged in the accounts as they become payable in accordance with the rules of the scheme.

1.12 Basis of consolidation

The financial statements consolidate the accounts of C3 Trust UK and all of its subsidiary undertakings (‘subsidiaries’).

1.13 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 borrowing in current liabilities.

1.14 Financial instruments

The company 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 when the charity becomes party to the contractual provisions of the instrument.

C3 TRUST UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1.14 Financial instruments (continued)

Financial assets are offset, with the net amounts presented in the accounts 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 trade and other receivables 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.

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 amortisation 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.

C3 TRUST UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1.14 Financial instruments (continued)

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.15 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 company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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.

Critical judgements

Valuation of land and buildings

The estimates and assumptions which have a significant risk of causing material adjustment to the carrying amount of assets and liabilities are as follows.

The charity has revalued its land and buildings and depreciated from each revaluation. The trustees will ensure that valuations will be made regularly and will review the values of the land and buildings shown in the accounts each year to make a judgement as to whether any evidence exists that their values are materially different to the values in the financial statements. This may take into account the state of the fabric of the buildings and the conditions in the market for the types of property owned.

C3 TRUST UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

3 Donations and gifts


Unrestricted Restricted
funds funds
£ £
Donations and gifts
1,263,765
285,950
Coronavirus Job
Retention Scheme
60,171
-
1,323,936
285,950

Unrestricted Restricted
funds funds
£ £
Donations and gifts
1,261,465
249,866
Coronavirus Job
-
-
Retention Scheme
16,380
-
1,277,845
249,866		 Group
Total Unrestricted Restricted
2021 funds funds
£ £ £
1,549,715
1,758,289
550,290
60,171
-
-
1,609,886
1,758,289
550,290
Charity
Total Unrestricted Restricted
2021 funds funds
£ £ £
1,511,331
1,719,786
491,515
-
-
-
16,380
-
-
1,527,711
1,719,786
491,515		 Total
2020
£
2,308,579
-
2,308,579
Total
2020
£
2,211,301
-
-
2,211,301

4 Charitable activities

Charitable activities
Sales within charitable activities
Services provided under contract
Charitable rental income, recharges
and other income		 Group
2021 2020

£
£

241,797
399,001
-
6,131,648
239,391
16,667
481,188
6,547,316		 Charity
2021
2020
£ £
5,902
92,027
-
-
273,966
259,175
279,868
351,202
351,202

C3 TRUST UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

5 Other trading activities



Megacentre Limited
Sales of books and resources


Sales of books and resources		 Group
2021 2020
£ £
24,228
80,996
1,582
22,670
25,810
103,666
Charity
2021 2020
£
£
1,582
22,670

6 Investments

Group
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds 2021 funds funds 2020
£ £ £ £ £ £
Interest receivable 2,374
-		 2,374 662 3,275 3,937
Charity
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds 2021 funds funds 2020
£ £ £ £ £ £
Interest receivable 2,374
-		 2,374 105 3,275 3,380
7 Other income
Group Charity
2021 2020 2021 2020
£ £ £ £
Gain on disposal of tangible fixed assets 842 446 842 446
Sundry income - 406 - -
842 852 842 446

C3 TRUST UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

8




 Raising funds

Unrestricted Restricted
funds funds
£ £
Fundraising and publicity
Seeking donations, grants
and legacies
-
-
Staging fundraising events
15,001
849
Fundraising and publicity
15,001
849
Trading costs
Other trading activities
58,015
-
73,016
849		 Group
Total Unrestricted Restricted
2021 funds funds
£ £ £
-
-
2,831
15,850
-
28,552
15,850
-
31,383
58,015
139,835
8
73,865
139,835
31,391		 Total
2020
£
2,831
28,552
31,383
139,843
171,226

Raising funds include payments to the auditors of £1,750 (2020: £1,750) for services not connected to the charity and consolidated group accounts.





Unrestricted Restricted
funds funds
£ £
Fundraising and publicity
Seeking donations, grants
and legacies
-
-
Staging fundraising events
15,001
849
Fundraising and publicity
15,001
849
Trading costs
Other trading activities
1,174
-
16,175
849		 Charity
Total Unrestricted Restricted Total
2021 funds funds 2020
£ £ £ £
-
-
2,831
2,831
15,850
-
28,552
28,552
15,850
-
31,383
31,383
1,174
14,557
8
14,565
17,024
14,557
31,391
45,948

C3 TRUST UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

9 Charitable activities



Staff costs
Depreciation and impairment
Church departments and events
Minister’s consultancy fees
Food and drink
Activities and outings
City Hearts allowances
Hospitality and gifts
Rent, rates, and service charges
Insurance and utilities
Repairs and cleaning
Hire of office equipment
Subscriptions
Postage, stationery and adverts
Telephone and fax
Motor and travel expenses
Bad and doubtful debts
Educational activities
Legal, professional and consultancy fees
Staff recruitment and training
Catering costs
General expenses
Bank interest and charges
AKW costs
Grant funding of activities (see note 10)
Share of governance costs (see note 11)
Analysis by fund
Unrestricted funds
Restricted funds		 Group
2021
2020
£ £

971,151
4,296,938
126,238
142,289
10,944
86,076
7,625
31,575
8,106
61,780
137
32,313
-
850,992
19,001
128,307
211,316
572,380
90,026
194,744
140,293
490,447
17,364
52,892
22,885
47,861
12,493
70,801
8,377
80,214
16,271
488,651
3,964
5,392
3,337
6,873
135,556
253,882
1,661
47,087
4,401
11,747
77,374
105,186
19,003
38,581
-
21,907
1,907,523
8,118,915
-
3,872
4,024
3,400
1,911,547
8,126,187
1,681,647
7,488,267
229,900
637,920
1,911,547
8,126,187		 Charity
2021
2020
£ £
751,483
896,441
125,396
103,185
10,944
86,076
7,625
31,575
-
-
-
-
-
-
19,001
128,307
211,316
292,855
88,468
107,002
135,038
239,815
17,364
52,892
22,885
42,346
10,075
50,650
8,377
22,699
16,271
128,160
-
-
-
-
125,003
88,204
-
-
-
-
70,113
65,283
17,661
26,403
-
-
1,637,020
2,361,893
-
3,152
4,024
3,400
1,641,044
2,368,445
1,428,020
2,012,427
213,024
356,018
1,641,044
2,368,445

C3 TRUST UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

10 Grants payable



Grants to institutions
Grants to individuals		 Group
2021
2020
£ £
-
3,772
-
100
-
3,872

A grant of £1,846,492 was paid to City Hearts (UK) on leaving the C3 Trust UK group.



Grants to institutions
Grants to individuals		 Charity
2021
2020
£ £
-
3,052
-
100
-
3,152

11 Support costs

Group and Charity
Support Governance 2021 Support Governance
costs costs costs costs
£ £ £ £ £
Audit fees
-
4,024
4,024
-
3,400
-
4,024
4,024
-
3,400
Analysed between
Charitable activities
-
4,024
4,024
-
3,400		 2020
£
3,400

3,400

3,400

Group

Governance costs includes payments to the auditors of £4,024 (2020: £3,400) for audit fees. Charitable activities costs includes payments of £7,280 (2020: £14,060) to the auditors for other services.

Charity

Governance costs includes payments to the auditors of £4,024 (2020: £3,400) for audit fees. Charitable activities costs includes payments of £5,000 (2020: £5,000) to the auditors for other services.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

C3 TRUST UK

12 Trustees

D A Gilpin received emoluments of £11,213 (2020: £44,854) and pension contributions of £2,793 (2020: £11,174) during the year and invoiced the church for his services through his company Dagarte Limited. The total charges for ministry, advisory and other services paid to Dagarte Limited were £7,625 (2020: £31,575). His wife was also an employee of the church and received £4,160 (2020: £16,640) for work carried out under contracts of employment.

C Davies received emoluments of £31,614 (2020: £43,333) and pension contributions of £1,750 (2020: £1,350) during the year. A company owned and controlled by C Davies and his wife received £11,155 (2020: £1,101) for providing payroll and consultancy services to the charity. They received £13,305 (2020: £6,031) for providing payroll and consultancy services to the group. C Davies and his wife made donations totaling £16,380 (2020: £12,040) to the church with donations being made personally by both of them and also though making donations from their business.

The wife of C W Davies received £nil (2020: £1,043) for speaking at and holding worship sessions.

None of the other trustees received emoluments during the year (2020: £nil).

No other trustees received any other benefits during the year (2020: £nil).

The church’s constitution expressly permits trustees to be remunerated provided certain conditions are met.

13 Employees

Number of employees

The average number of employees during the year was:

Group Charity Charity
2021 2020 2021 2020
Number Number Number Number
Trustees of C3 Trust UK 6 6 6 6
Trustees / directors of subsidiaries 3 8 - -
Employees 65 226 33 40
74 240 39 46

C3 TRUST UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

13 Employees (continued)

Employment costs


Raising Charitable
funds activities
£ £
Wages and salaries
24,249
888,868
Social security costs
1,355
50,350
Other pension costs
558
31,933
26,162
971,151



Wages and salaries
Social security costs
Other pension costs		 Group
Raising Charitable
2021 funds activities 2020
£ £ £ £
913,117
47,322
3,901,332
3,948,654
51,705
2,554
274,110
276,664
32,491
836
121,496
122,332
997,313
50,712
4,296,938
4,347,650
Charity
2021 2020
£ £
684,552
796,088
40,135
55,394
26,796
44,959
751,483
896,441
Group and Charity
2021 2020
The number of employees whose annual remuneration was £60,000 or more
were;
£80,001 to £90,000 - 1

Contributions totalling £nil (2020: £11,174) were made to defined contribution pension schemes on behalf of employees whose emoluments exceed £60,000.

14 Other

Bad debts Group
2021
£
-
-
2020
£
2,300
2,300		 Charity
2021
2020
£
£
26,950
30,850
26,950
30,850

C3 TRUST UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

15 Tangible fixed assets

Group
Freehold Long Fixtures
property leasehold fittings &
property equipment
£ £ £
Cost
At 1 April 2020
561,251
1,960,760
992,565
Additions at cost
1,873
16,422
25,302
Disposals
(398,251)
(1,377)
(161,142)
Revaluations
(24,873) -
-
At 31 March 2021
140,000
1,975,805
856,725
Depreciation and impairment
At 1 April 2020
26,653
125,859
819,821
Charge for the year
3,978
85,483
36,777
Eliminated in respect of disposals
(22,660)
(100)
(76,486)
Revaluations
(7,971) -
-
At 31 March 2021
-
211,242
780,102
Carrying amount
At 31 March 2021
140,000
1,764,563
76,623
At 31 March 2020
534,598
1,834,901
172,744
Charity
Freehold Long Fixtures
property leasehold fittings &
property equipment
£ £ £
Cost
At 1 April 2020
163,000
1,959,384
771,307
Additions at cost
1,833
16,422
25,302
Revaluations
(24,873) -
-
At 31 March 2021
140,000
1,975,806
796,609
-
Depreciation and impairment
At 1 April 2020
3,993
125,760
685,374
Charge for the year
3,978
85,483
35,935
Revaluations
(7,971) -
-
At 31 March 2021
-
211,243
721,309
Carrying amount
At 31 March 2021
140,000
1,764,563
75,300
At 31 March 2020
159,007
1,833,624
85,933		 Total
£
3,514,576
43,597
(560,770)
(24,877)
2,972,530
972,333
126,238
(99,256)
(7,971)
991,344
1,981,186
2,542,243
Total
£
2,893,691
43,597
(24,873)
2,912,415
815,127
125,396
(7,971)
932,552
1,978,863
2,078,564

C3 TRUST UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

15 Tangible fixed assets (continued)

Some of the church’s freehold land and buildings were externally revalued at £1,475,000 at their open market value in December 2017 by Cushman and Wakefield, Chartered Surveyors. Improvements made since 31 March 2007 are included at a cost less accumulated depreciation. Improvements to leasehold premises with a net book value of £29,656 are included within the fixed assets of Hope Community Foundation (a charitable company controlled by C3 Trust UK) which has a sublease on part of the premises. The trustees are of the opinion that the value at 31 March 2020 would not differ significantly from this valuation.

Another of the church’s freehold properties was externally revalued at £160,000 at their open market value in February 2019 by Reeds Rains, Estate Agents. The property was sold on 1 April 2021 for £140,000.

Group

Some of the charity’s leasehold and freehold land and buildings are subject to a mortgage with the balance owed at 31 March 2021 amounting to 57% (2020: 55%) of their net book value as stated in these accounts.

Charity

Some of the charity’s leasehold and freehold land and buildings are subject to a mortgage with the balance owed at 31 March 2021 amounting to 57% (2020: 57%) of their net book value as stated in these accounts.

Comparable historical cost for the land and buildings included at valuation:




Cost
Accumulated depreciation
At 31 March 2021		 Group
2021
2020
£
£
1,652,496
1,652,496
661,062
628,265
991,434
1,024,231		 Charity
2021 2020
£
£
1,536,586
1,536,586
576,894
556,178
959,692
990,408

All other tangible fixed assets are stated at historical cost.

16
Stocks



Goods for resale		 Group
Charity
2021 2020
2021
£ £ £
150
1,050
100		 2020
£
1,000

C3 TRUST UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

17
Debtors



Trade debtors
Amounts due from subsidiary undertakings
Other debtors
Prepayments and accrued income		 Group
2021 2020

£
£
11,363
858,690
-
-
30,551
61,418
9,619
24,416
51,539
944,524		 Charity
2021 2020
£ £
5,052
20,790
1,688
18,688
29,304
47,241
8,975
13,906
45,019
100,625
18
Creditors: amounts falling due within one year



Bank loans and overdrafts
Trade creditors
Amounts owed to group undertakings
Taxation and social security
Other creditors
Accruals
Deferred income		 Group
2021 2020

£
£
60,695
70,878
51,232
88,930
-
-
4,155
63,811
165,283
116,670
16,911
43,558
10,238
67,131
308,514
450,978		 Charity
2021 2020
£ £
53,051
52,325
43,599
56,832
-
154,617
4,155
11,592
153,501
27,101
11,807
17,881
10,238
-
276,351
320,348

C3 TRUST UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

19 Creditors: amounts falling due after more than one year




Mortgage and loan
Analysis of mortgage and loan
Not wholly repayable within five years by instalments
Wholly repayable within five years
Included in current liabilities
Loan maturity analysis
Debt due in one year or less
In more than one year but not more than two years
In more than two years but not more than five years
In more than five years		 Group
2021 2020
£ £
781,243
928,866
508,872
677,799
325,422
310,380
834,294
988,179
(53,051)
(59,313)
781,243
928,866
53,051
59,313
64,048
60,659
208,324
190,408
508,872
677,799
834,294
988,179

The mortgages are secured by first legal charges over the group’s freehold and leasehold land and buildings.

Mortgage
Analysis of loans
Not wholly repayable within five years by instalments
Wholly repayable within five years
Included in current liabilities
Loan maturity analysis,
Debt due in one year or less
In more than one year but not more than two years
In more than two years but not more than five years
In more than five years		 Charity
2021
2020
£
£
731,243
759,357
508,872
539,529
275,422
272,153
784,294
811,682
(53,051)
(52,325)
731,243
759,357
53,051
52,325
54,048
53,357
168,324
166,471
508,872
539,529
784,294
811,682

The mortgage is secured by a first legal charge over the charity’s freehold land and buildings.

C3 TRUST UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

20
Deferred income



Other deferred income
21
Pension and other post-retirement benefit commitments
Defined contribution
Group
2021 2020
£ £
Contributions payable by the group
and charity for the year
32,491
122,332		 Group and Charity
2021
2020
£ £
10,238
-
Charity
2021
2020
£
£
17,681
23,153

The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in independently administered funds. The pension cost charge represents contributions payable by the group to the fund.

C3 TRUST UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

22 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:

Group
Movement in funds
Balance at Incoming Resources Transfers Balance at Incoming Resources Balance at
1 April 2019 resources expended 31 March 2020 resources expended 31 March 2021
£ £ £ £ £ £ £ £
Dream Offering 465,975 494,790 (387,409) (143,794) 429,562 249,866 (213,873) 465,555
ISP Project 29,240 - (175,191) 145,951 - - - -
Henry Smith Charity - - - - - 16,550 (6,763) 9,787
Hope Hampers - - - - - 11,905 (10,113) 1,792
Neon Schools Programme - - - - - 4,629 - 4,629
Befriending/ Jigsaw Services - - - - - 3,000 - 3,000
Antislavery Knowledge Network 20,000 58,775 (106,711) 27,936 - - - -
515,215 553,565 (669,311) 30,093 429,562 285,950 (230,749) 484,763
Charity
Movement in funds
Balance at Incoming Resources Transfers Balance at Incoming Resources Balance at
1 April 2019 resources expended 31 March 2020 resources expended 31 March 2021
£ £ £ £ £ £ £ £
Dream Offering 465,975 494,790 (387,409) (143,794) 429,562 249,866 (213,873) 465,555

C3 TRUST UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

22 Restricted funds (continued)

The Dream Offering was an offering made with the intention of raising funds to fund the future development of each of the church’s locations. Each location has its own forward looking plan and the Dream Offering is therefore appropriated and allocated against the specific requirements of each location. In some instances this will relate to the purchase or refurbishment of premises and in others securing the medium to long term future of the congregation by enabling the hiring of venues.

The Integration Support Programme aims to support male victims of human trafficking to connect with their community and reintegrate into the labour market. The programme seeks to empower, ‘up-skill’ and inspire each individual to take hold of a pathway to employment and to engage effectively with their local community, moving them towards full independence. The charity provided coaching and guidance and encourage individuals to manage their own lives independently. This was achieved through weekly coaching sessions, befriending activities, classroom work, work placement and training.

The Antislavery Knowledge Network offers the extended effort to address slavery as a core development challenge in sub-Saharan Africa via innovative approaches from the arts and humanities that deliver community-engaged antislavery work. This involves classroom based sessions utilising visual arts and photography and collaborating with local schools engaging with and building upon the existing City Hearts education programme.

The charity received the first drawdown 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 immediate impact of COVID-19 by providing emergency food provision through our Hope Hampers project up to April 2021 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 due to COVID-19 restrictions and the impact in schools but funds are scheduled to be allocated in the financial year 2021/22.

Our work with the elderly went online during the periods of national and local lockdown hence funds raised for our Jigsaw project in financial year 2020/21 have remained unspent. As Jigsaw is now re-launched our plan is to apply this fund to the project over the coming 12 months.

C3 TRUST UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

23 Analysis of net assets between funds

23
Analysis of net assets between funds

Unrestricted Restricted
funds funds
2021 2021
£ £
Fund balances at
31 March 2021 are
represented by:
Tangible assets
1,981,186
-
Current assets/(liabilities)
(14,699)
484,763
Long term liabilities
(781,243)
-
1,185,244
484,763
Unrestricted Restricted
funds funds
2021 2021
£ £
Unrealised gains
included above:
On tangible fixed assets
359,525
-
359,525
-
Reconciliation of movements
in unrealised gains:
Unrealised gains at
1 April 2020
376,427
-
Revaluation of tangible
fixed asset
(16,902)
-
Unrealised gains at
31 March 2021
359,525
-		 Group
Unrestricted Restricted
Total funds funds
2021 2020 2020
£ £ £
1,981,186
2,542,243
-
470,064
1,355,774
429,562
(781,243) (928,866)
-
1,670,007
2,969,151
429,562
Unrestricted Restricted
Total funds funds
2021 2020 2020
£ £ £
359,525
376,427
-
359,525
376,427
-
376,427
376,427
-
(16,902)
-
-
359,525
376,427
-
Total
2020
£
2,542,243
1,785,336
(928,866)
3,398,713

Total
2020
£
376,427
376,427
376,427
-
376,427






C3 TRUST UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

23
Analysis of net assets between funds (continued)

Unrestricted Restricted
funds funds
2021 2021
£ £
Fund balances at
31 March 2021 are
represented by:
Tangible assets
1,979,863
-
Current assets/(liabilities)
(3,952)
458,555
Long term liabilities
(731,243)
-
1,244,668
458,555
Unrestricted Restricted
funds funds
2021 2021
£ £
Unrealised gains
included above:
On tangible fixed assets
463,533
-
463,533
-
Reconciliation of movements
in unrealised gains:
Unrealised gains at
1 April 2020
480,435
-
Revaluation of tangible
fixed asset
(16,902)
-
Unrealised gains at
31 March 2021
463,533
-		 Charity
Unrestricted Restricted
Total funds funds
2021 2020 2020
£ £ £
1,979,863
2,078,564
-
454,603
(156,003)
429,562
(731,243)(759,357)
-
1,703,223
1,163,204
429,562
Unrestricted Restricted
Total funds funds
2021 2020 2020
£ £ £
463,533
480,435
-
463,533
480,435
-
480,435
480,435
-
(16,902)
-
-
463,533
480,435
-
Total
2020
£
2,078,564
273,559
(759,357)
1,592,766

Total
2020
£
480,435
480,435
480,435
-
480,435







C3 TRUST UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

24 Operating lease commitments

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years
In over five years		 Group
2021
2020
£
£
99,999
146,569
330,768
378,499
161,875
217,375
592,642
742,443		 Charity
2021
2020
£
£
97,129
100,340
330,768
375,629
161,875
217,375
589,772
693,344		 Charity
2021
2020
£
£
97,129
100,340
330,768
375,629
161,875
217,375
589,772
693,344
693,344

Capital commitments

The group and charity had no capital commitments at 31 March 2021.

25 Events after the reporting date

As referred to in the going concern section of the accounting policies, the trustees are monitoring the situation concerning the coronavirus and any impact it may have on the charity. Given the current uncertainties, any longer term financial effect cannot be estimated.

26 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel, none of whom were trustees, is as follows.


Aggregate compensation		 Group
2021
2020
£
£
58,704
131,902		 Charity
2021
£
43,368
2020
£
45,440

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

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

C3 TRUST UK

27 Subsidiaries

These financial statements are separate company financial statements for C3 Trust UK.

The charity has control of 100% of the assets and trade of Hope Community Foundation , formerly Hope City Foundation, a charitable company limited by guarantee. The company operates as a children’s nursery on church premises utilising assets purchased by the charity and does other community based activities. Hope Community Foundation became a registered charity in March 2004 (charity number 1102542). At the year-end Hope Community Foundation had net assets of £16,162 (2020: £17,075). During the year ended 31 March 2021 its total incoming resources were £309,923 (2020: £307,110) and its total resources expended were £310,836 (2020: £357,118) leaving a net decrease in funds of £913 (2020: £50,008).

C3 Trust UK owns 100% of the ordinary share capital of Megacentre Limited , a trading company which generates funds for the church. Megacentre Limited began trading on 1 April 2003, it operates from church premises and its principal activity is the letting of conference facilities and running a children’s play area and café. At 31 March 2021 the net liabilities of Megacentre were £605,588 (2020: £580,622). Its turnover for the year ended 31 March 2021 was £24,228 (2020: £80,996) and its total resources expended were £49,194 (2020: £116,185) leaving a loss for the year of £24,966 (2020: £35,189).

City Hearts (UK) left the C3 Trust UK group on 1 April 2020.

28 Cash generated from operations

Group
2021
2020
£
£
Surplus/(deficit) for the year
(1,711,804)
664,637
Adjustments for:
Investment income recognised in statement
of financial activities
(2,374)
(3,937)
Gain on disposal of tangible fixed assets
(842)
(446)
Depreciation and impairment of tangible
fixed assets
126,238
143,019
Net cash flow from City Hearts (UK)
leaving the group
281,096
-
Movements in working capital:
Decrease in stock
900
4,450
Decrease/(increase) in debtors
892,985
(173,376)
(Decrease)/increase in creditors
(75,388)
(8,724)
Increase/(decrease) in deferred income
(56,893)
(3,804)
Cash generated from/(absorbed by)
operations
(546,082)
621,819		 Charity
2021
2020
£
£
127,359
143,756
(2,374)
(3,380)
(842)
(446)
125,396
103,185
-
-
900
4,000
55,606
4,520
(54,961)
118,182
10,238
-
261,322
369,817

C3 TRUST UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

29
Analysis of changes in net (debt)/funds


Cash at bank and in hand

Loans falling due within one year
Loans falling due after more than one year


Cash at bank and in hand
Loans falling due within one year
Loans falling due after more than one year		 Group
At 1 April Cash At 31 March
2020 flows 2021
£
£
£
1,290,740
(563,851)
726,889
(70,878)
10,183
(60,695)
(928,866)
147,623
(781,243)
290,996
(406,045)
(115,049)
Charity
At 1 April Cash At 31 March
2020 flows 2021
£
£
£
492,282
193,553
685,835
(52,325)
(726)
(53,051)
(759,357)
28,114
(731,243)
(319,400)
220,941
(98,459)