CHARITY REGISTRATION NUMBER 1119791 COMPANY REGISTRATION NUMBER 5999100 

## **C3 TRUST UK** 

## **GROUP ACCOUNTS** 

**FOR THE YEAR ENDED 31 MARCH 2022** 




## **C3 TRUST UK** 

## **LEGAL AND ADMINISTRATIVE INFORMATION** 

|**Trustees**|C Davies||
|---|---|---|
||P Benger||
||C W Davies||
||O Olarinde||
||M Muthiah|(Appointed 19 August 2021)|
||J Hemmingfield|(Appointed 19 August 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 – 8|
|Statement of trustees’ responsibilities|9|
|Independent auditors’ report|10 – 13|
|Consolidated statement of financial activities|14 – 15|
|Statement of financial activities|16 – 17|
|Consolidated balance sheet|18|
|Balance sheet|19|
|Statement of cash flows|20|
|Notes to the accounts|21 – 43|





## **C3 TRUST UK** 

## **TRUSTEES’ REPORT** 

## **FOR THE YEAR ENDED 31 MARCH 2022** 

The Trustees present their report and consolidated 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 “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: 

- a) advance the Christian faith in accordance with the Statement in such way and in such parts of the United Kingdom or the world as the directors from time to time may think fit; 

- b) to relieve sickness and financial hardship and to promote and preserve good health by the provision of funds, goods or services of any kind including through the provision of counselling and support in such parts of the United Kingdom or the world as the directors from time to time may think fit; and 

- c) to advance education in such parts of the United Kingdom or the world as the directors from time to time may think fit. 

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. In this year all churches have continued to operate under the terms of the scheme of delegation and work within the wider structure of the Executive Board reporting to the Board of Trustees through the Chief Executive. 

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** 

In the past year we have continued to see the steady recovery of churches following the COVID-19 pandemic and the charity’s own internal challenges which took place in 2020. There has been a firm and concerted focus across our churches towards a better future. This has been universally embraced by all churches although the experiences of each church has been very unique to their own location, situation, church membership and leadership. 

Being strongly networked across other churches which are part of the C3 Global network of churches, we have been able to see how our journey has reflected that of other churches. In many ways, we believe that the events of 2020 placed our churches at an advantage in addressing some of the underlying aspects of church strategy, culture and design which have affected other churches across the western world in the past two years. 

- 1 - 



## **C3 TRUST UK** 

## **TRUSTEES’ REPORT (CONTINUED)** 

## **FOR THE YEAR ENDED 31 MARCH 2022** 

As part of our response to the events of 2020 the charity compiled an action plan to address key areas of leadership culture. This action plan created in 2021 has continued to feature not only in cultural change and leadership development but in the policy infrastructure which underpins cultural formation. The longer-term strategy of moving from autonomy to church independence remains a key part of the focus moving forward. To this end, the trustees commissioned an external consultant to provide objective feedback and to help us establish a road map of independence. Trustees throughout this time, have remained in favour of the overall strategy, but have also been keen to discharge their fiduciary duties effectively, as trustees, to ensure that this change process is navigated step by step, at each stage managing and minimising the risks associated with change. 

As part of the response to the need to further strengthen the board of trustees and continue to focus on strength of governance, two additional trustees were recruited to the board of trustees in 2021, both of which now play a valuable and active role in the work of the charity. 

At local church level the charity currently houses the five remaining churches mentioned below with C3 YRKS having Lead Pastors for both Leeds and York congregations. The work of the local churches is led by each of the Lead Pastors for each church. Each church then has its own local leadership which acts primarily to ensure that the local vision of the church is advanced, whilst recognising the connection and interdependence that remains across all of the churches which form part of C3 Trust UK. 

Across all churches our current estimate is that we remain at approximately 2,100 members as at 31 March 2022. By the end of November 2022 this has risen slightly to approximately 2,450 showing a slight upturn or trend in membership overall. Not unlike the previous year, these figures have been difficult to qualify given the gradual and punctuated movement away from exclusively online church back to ‘in-person’ church services. 

## **Church Membership (as per database)** 

|**Church**||||
|---|---|---|---|
|**Name**|**31/03/22**|**30/11/22**|**Average attendance in person**|
|C3 Hope (Sheffield)|1600|1900|291|
|C3 YRKS (Leeds & York)|190|230|82|
|C3 Liverpool|130|100|55|
|C3 Newcastle|120|150|75|
|C3 Sunderland|49|65|20|
|**TOTALS**|**2089**|**2445**|**523**|



C3 Hope, being by far the largest church numerically, has seen the most significant growth, although a census in 2023 will help to quantify the church membership more accurately. Current Sunday church attendance in Sheffield is approximately 500 people (including children and young people) as of December 2022. 

Across all our churches there are more than 300 volunteers involved in serving and leading. 

The journey for all our churches remains one of rebuilding both from the effects of COVID-19 and the internal challenges of 2020. All churches and their Lead Pastors have focused on rebuilding a strong and renewed sense of trust, a new culture and vision for the future, assembling and growing new teams, engaging new church members, enabling a greater level of transparency, managing financial risk, and creating a fresh momentum. At the same time, churches are establishing their respective pathways to independence as separate legal entities. 

- 2 - 



## **C3 TRUST UK** 

## **TRUSTEES’ REPORT (CONTINUED)** 

## **FOR THE YEAR ENDED 31 MARCH 2022** 

The progress against all of these areas and others has been on the whole positive although not without challenges, many of which remain factors which trustees remain actively involved in helping to support and bring solutions to. 

In addition, buildings or premises have represented a significant challenge for churches. For some it has been the absence of premises which has stifled recovery. For others, having a building, to which they are committed under a lease agreement, has presented significant challenge. Still for others, buildings represent both opportunity and risk at the same time. 

Churches and church leaders have much to celebrate in the reformation and regathering of their congregations post-pandemic. The continued commitment to serving communities has been encouraging to see, with the churches continuing where they can to undertake outreach and social action projects commensurate with their capacity to undertake these activities. C3 Hope and C3 YRKS have operated substantial social action projects whilst other churches have run regular or seasonal projects provide much needed support to local families and continue to develop local partnerships to support local action. 

The relaunch and resurgence of small groups across the churches, as a foundational component of discipleship, has again been a sign of progress in rebuilding of church. One of the fundamental shifts in emphasis has been the renewed focus on one of the key tenets of the Christian faith, that of not only being disciples but making disciples. A concerted effort to strengthen and grow small groups has been foundational in the formation of church family and community, pastoral care and discipleship. 

The movement towards a new culture, and hence new way of workings, has been a significant achievement. Not only is there a clear commitment to creating healthy church culture, but a deeper understanding of, and commitment to, the good practice that comprises organisational effectiveness. There is a clearer recognition that good strategy, planning, communication, management and learning and development are all integral and essential elements which underpin the vision and values of the local church. This has led to stronger teams, greater empathy, more informed decision- making, more robust dialogue, moderation of pace and greater clarity around priorities and focus. 

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

## **C3 Trust UK Property** 

The Sheffield based 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 and a development plan is currently being revised to capitalise on this opportunity to fundraise for the charity using the physical asset. 

We will continue to focus on the building housing 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 1300 members, provides affordable food for local people in need. This partnership creates social value amongst areas that experience acute deprivation and disadvantage. 

- 3 - 



## **C3 TRUST UK** 

## **TRUSTEES’ REPORT (CONTINUED)** 

## **FOR THE YEAR ENDED 31 MARCH 2022** 

Funds previously raised for the Waverley project in Sheffield have now been successfully repurposed as part of a Special Scheme which was approved by the Charity Commission in 2022. This means that remaining funds can be used to invest into the Hope Centre in Sheffield and committed in full after the 07 April 2023. This capital work will be considerable and ongoing but has started with essential repairs to the roof and some repairs to brickwork. Initial work has been part funded by external funders such as Garfield Weston Foundation, Bernard Sunley Foundation and All Churches Trust (now Benefact Trust). A fundraising strategy is currently being development to leverage additional external funding, with remaining funds being deployed to cover the extensive works required to maintain and, in some areas, redevelop the building. 

During this financial year, C3 Newcastle 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 continue to represent a significant ongoing cost and overhead to these local churches.  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. Support is being provided to the church in lieu of consideration and qualification of the charity’s options moving forward. 

## **Annual Giving** 

From April 2021, most churches have continued to supplement regular giving with an additional annual oneoff offering in the form of a ‘Vision Builders’ or ‘Heart for the House’ appeal. 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. The funds raised from these campaigns is unrestricted but designated to operational running costs for the most part and at present forms part of the income required to cover the operating costs of the respective church. 

For each annual campaign the giving consists of one-off donations, standing orders and financial pledges which are redeemed during the months following the initial commitment. 

## **Staffing** 

As of December 2022, gross monthly pay on salaries for C3 Trust UK was £39,438 for 25 people working on either a full time or part time basis. 

Salary bands brought into effect in 2020-21 financial year are continuing to provide a framework and guidance for recruitment and selection and salary reviews and trustees continue to give sensitive consideration to making every effort to manage pressure on real time salaries arising from the cost of living crisis. Trustees have made a number of improvements to staff terms and conditions including additional leave and sickness entitlement. 

## **Subsidiary and other controlled companies** 

The achievements and performance of the church’s subsidiaries and other controlled companies for the year ended 31 March 2022 were as follows: 

- Hope Centre Limited through its trading activities suffered a loss of £8,587 (2021: £24,966).  Closing shareholders’ funds were in deficit at £614,175 (2021: £605,588).  Hope Centre Limited is a limited company incorporated in England and Wales and C3 Trust UK owns 100% of the share capital.  The nature of its business is the provision of conference facilities, running a café and a children’s play area. 

- Hope Community Foundation made a deficit of £8,117 (2021: £913) this year.  Closing funds were £8,045 (2021: £16,162) of which £17,107 (2021: £19,208) were restricted and £(9,062) (2021: £(3,046)) were unrestricted.  Hope Community Foundation is a charitable company registered in England and Wales.  C3 Trust UK is able to appoint and remove the trustees of this charitable company and the nature of its business is the provision of nursery education and care. 

- 4 - 



## **C3 TRUST UK** 

## **TRUSTEES’ REPORT (CONTINUED)** 

## **FOR THE YEAR ENDED 31 MARCH 2022** 

## **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 decrease in funds of £127,562 (2021: £110,457 increase). The church has general unrestricted reserves of £695,863 excluding the revaluation reserve, compared with £774,135 the previous year.  The trustees have identified that the reserves are at a low level, representing more than 81% (including the revaluation reserve) of annual net resources expended (2021: 73%).  This percentage is slightly higher than the previous year.  The freely available unrestricted reserves were £89,897. 

The Consolidated Statement of Financial Activities shows a net decrease in funds of £128,966 (2021: decrease in funds of £1,728,706). The group has general unrestricted reserves of £1,362,359 excluding the revaluation reserve, compared with £1,431,407 the previous year.  The trustees have identified that the reserves are at a low level, representing more than 58% (including the revaluation reserve) of annual net resources expended (2021: 31%).  The freely available unrestricted reserves were £82,134. 

The financial results for the subsidiary entities are shown in note 26 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. This level of reserves has been maintained throughout the year. 

As of December 2022, C3 Trust UK has £84,418 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. As previously mentioned, and having worked alongside the Charity Commission, the Trustees continue to progress with the re-evaluation and redistribution of this fund. 

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

## **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 and cultural change.  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. 

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. 

- 5 - 



## **C3 TRUST UK** 

## **TRUSTEES’ REPORT (CONTINUED)** 

## **FOR THE YEAR ENDED 31 MARCH 2022** 

## **Goals and Developments** 

The goals of C3 Trust UK for the forthcoming 12-18 months are: 

1. To continue to work towards legal independence for our churches with C3 Newcastle and C3 Sunderland separating from C3 Trust UK from 01 April 2023 

2. To successfully navigate further organisational transition and restructure to ensure that all churches are independent from 01 April 2024 with C3 Trust UK focusing on the work of C3 Hope only. 

3. To continue to support local churches in the meantime to build health and strength in support of their local vision and goals. 

4. To continue to see an acceleration in the growth and recovery of local churches and in their respective social action projects and initiatives. 

The goals represent clear intentionality both around continuing to further the core objectives of the charity, whilst at the same time transitioning churches from managed autonomy through legal independence. 

## **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 P Benger C W Davies O Olarinde J Greenow (Resigned 7 May 2021) A E Ibbotson (Resigned 27 January 2022) M Muthiah (Appointed 19 August 2021) J Hemmingfield (Appointed 19 August 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 Hope – located in Sheffield and serving the Sheffield City Region 

- C3 YRKS – located in Leeds and York and serving these cities and the surrounding area 

- C3 Sunderland – located in Sunderland and serving this city and the surrounding area 

- C3 Liverpool – located in Liverpool and serving this city and the surrounding area 

- C3 Newcastle – located in Newcastle and serving this city and the surrounding area 

- Hope City Kuala Lumpur – became independent in Malaysia 01 April 2021 

- Hope City Frankfurt and Hope City Darmstadt – became independent in Germany 01 April 2021, now no longer involved with any UK oversight. 

- C3 Hope City Accra – became independent in Ghana 01 April 2021 

- C3 Reflect – located in London (released to form its own independent charity July 2021 – Charity Number 1194463) 

- 6 - 



## **C3 TRUST UK** 

## **TRUSTEES’ REPORT (CONTINUED)** 

## **FOR THE YEAR ENDED 31 MARCH 2022** 

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 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. 

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

Hope Centre 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 (The Hope Centre) 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. 

Hope Community Foundation has continued to deliver much needed services to the local community in Sheffield including through its community nursery, Little Ark Nursery & Pre-School and through a growing number of community projects which have continued to gain momentum in the last year. 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. Community projects such as Polka Dots Play Group and Jigsaw Café have helped the charity to build its support for young families and the elderly respectively. The donation-based Foundation Café, provides a vital and vibrant connection point from which the social value created through each project can be compounded for beneficiaries. Hope Community Foundation has continued to extend its scope and reach and now has over 80 regular volunteers supporting and enabling the work of the charity. 

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. 

- 7 - 



## **C3 TRUST UK** 

## **TRUSTEES’ REPORT (CONTINUED)** 

## **FOR THE YEAR ENDED 31 MARCH 2022** 

## **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: 22 March 2023 

- 8 - 



## **C3 TRUST UK** 

## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES** 

## **FOR THE YEAR ENDED 31 MARCH 2022** 

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: 

- 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; and 

- prepare the accounts on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. 

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. 

- 9 - 




6 Broadfield Court Broadfield Way Sheffield S8 0XF 

## **INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF C3 TRUST UK** 

## **Opinion** 

We have audited the financial statements of C3 Trust UK (the ‘charitable company) for the year ended 31 March 2022 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: 

- give a true and fair view of the state of the group and the parent charitable company’s affairs as at 31 March 2022 and of its incoming resources and application of resources, for the year then ended; 

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

- 

- have been properly 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 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. 

- 10 - 




## **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: 

- the information given in the Trustees’ Report, which includes the Directors’ Report prepared for the purposes of company law, for the financial year of which the accounts are prepared 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. 

- 11 - 




## **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. 

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. 

- 12 - 




## **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** 

**22 March 2023** 

**Chartered Accountants Statutory Auditor** 

- 13 - 



## **C3 TRUST UK** 

## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** 

## **FOR THE YEAR ENDED 31 MARCH 2022** 

|**Unrestricted     Restricted**<br> **funds              funds**<br>**Notes** **£** **£** <br>**Income from: **<br>Donations and gifts<br>**3**<br>1,114,704<br>139,467<br>Charitable activities<br>**4**<br>338,430<br>-<br>Other trading activities<br>**5**<br>51,680<br>-<br>Investments<br>**6**<br>818<br>-<br>Other income<br>**7**<br>62,866<br> -<br>**Total income**<br>1,568,498<br>139,467<br>**Expenditure on:**<br>Raising funds<br>**8**<br>64,325<br>2,027<br>Charitable activities<br>**9**<br>1,626,167<br>144,412<br>Other<br>**14**<br>-<br>-<br>Grant paid to City Hearts (UK)<br> -<br> -<br>**Total expenditure**<br>1,690,492<br>146,439<br>**Net incoming/(outgoing) resources before**<br>**associated undertakings and transfers**<br>(121,994)<br>(6,972)<br>Gross transfers between funds<br>(60_)_<br>60<br>**Net incoming/(outgoing) resources**<br>(122,054)<br>(6,912)<br>**Other recognised gains and losses**<br>Revaluation of tangible fixed assets<br> -<br> -|**Total                Unrestricted   Restricted      Total**<br>**2022                       funds            funds           2021**<br> **£** **£                    £                  £**<br>1,254,171<br>1,323,936<br>285,950<br>1,609,886<br>338,430<br>481,188<br>-<br>481,188<br>51,680<br>25,810<br>-<br>25,810<br>818<br>2,374<br>-<br>2,374<br>62,866<br>842<br> -<br>842<br>1,707,965<br>1,834,150<br>285,950<br>2,120,100<br>66,352<br>73,016<br>849<br>73,865<br>1,770,579<br>1,681,647<br>229,900<br>1,911,547<br>-<br>-<br>-<br>-<br> -<br>1,846,492<br> -<br>1,846,492<br>1,836,931<br>3,601,155<br>230,749<br>3,831,904<br>(128,966)<br>(1,767,005)<br>55,201 (1,711,804)<br> -<br> -<br> -<br> -<br>(128,966)<br>(1,767,005)<br>55,201 (1,711,804)<br> -<br>(16,902)<br> -<br>(16,902)|
|---|---|



- 14 - 



## **C3 TRUST UK** 

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

## **FOR THE YEAR ENDED 31 MARCH 2022** 

|**Unrestricted      Restricted**<br> **funds               funds**<br>**Notes** **£** **£** <br>**Net movement in funds**<br>(122,054)<br>(6,912)<br>Fund balances at 31 March 2021<br>1,185,244<br>484,763<br>**Fund balances at 31 March 2022**<br>1,063,190<br>477,851|**Total                Unrestricted   Restricted     Total**<br>**2022                       funds           funds           2021**<br> **£** **£                   £                  £**<br>(128,966)<br>(1,783,907)<br>55,201 (1,728,706)<br>1,670,007<br>2,969,151<br>429,562<br>3,398,713<br>1,541,041<br>1,185,244<br>484,763<br>1,670,007|
|---|---|



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. 

- 15 - 



## **C3 TRUST UK** 

## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** 

## **FOR THE YEAR ENDED 31 MARCH 2022** 

|**Unrestricted       Restricted**<br> **funds                funds**<br>**Notes** **£** **£** <br>**Income from: **<br>Donations and gifts<br>**3**<br>1,076,165<br>30,000<br>Charitable activities<br>**4**<br>76,589<br>-<br>Other trading activities<br>**5**<br>598<br>-<br>Investments<br>**6**<br>818<br>-<br>Other income<br>**7**<br> 62,866<br> -<br>**Total income**<br> 1,217,036<br> 30,000<br>**Expenditure on:**<br>Raising funds<br>**8**<br>15,221<br>-<br>Charitable activities<br>**9**<br>1,314,006<br>34,871<br>Other<br>**14**<br>10,500<br> -<br>**Total expenditure**<br>1,339,727<br>34,871<br>**Net incoming/(outgoing) resources before**<br>**associated undertakings and transfers**<br>(122,691)<br>(4,871)<br>Gross transfers between funds<br> -<br> -<br>**Net incoming/(outgoing) resources**<br>(122,691)<br>(4,871)<br>**Other recognised gains and losses**<br>Revaluation of tangible fixed assets<br> -<br> -<br>**Net movement in funds**<br>(122,691)<br>(4,871)|**Total           Unrestricted     Restricted**<br>**2022                  funds              funds**<br> **£** **£                      £**<br>1,106,165<br>1,277,845<br>249,866<br>76,589<br>279,868<br>-<br>598<br>1,582<br>-<br>818<br>2,374<br>-<br>62,866<br>842<br> -<br>1,247,036<br>1,562,511<br>249,866<br>15,221<br>16,175<br>849<br>1,348,877<br>1,428,020<br>213,024<br>10,500<br>26,950<br> -<br>1,374,598<br>1,471,145<br>213,873<br>(127,562)<br>91,366<br>35,993<br> -<br> -<br> -<br>(127,562)<br>91,366<br>35,993<br> -<br>(16,902)<br> -<br>(127,562)<br>74,464<br>35,993|**Total**<br>**2021**<br>**£**<br>1,527,711<br>279,868<br>1,582<br>2,374<br>842<br>1,812,377<br>17,024<br>1,641,044<br>26,950<br>1,685,018<br>127,359<br> -<br>127,359<br>(16,902)<br>110,457|
|---|---|---|



- 16 - 



## **C3 TRUST UK** 

## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** 

## **FOR THE YEAR ENDED 31 MARCH 2022** 

|**Unrestricted       Restricted**<br> **funds                funds**<br>**Notes** **£** **£** <br>Fund balances at 1 April 2021<br>1,237,668<br>465,555<br>**Fund balances at 31 March 2022**<br>1,114,977<br>460,684|**Total           Unrestricted     Restricted**<br>**2022                  funds              funds**<br> **£** **£                      £**<br>1,703,223<br>1,163,204<br>429,562<br>1,575,661<br>1,237,668<br>465,555|**Total**<br>**2021**<br>**£**<br>1,592,766|
|---|---|---|
|||<br>1,703,223|



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. 

- 17 - 



## **C3 TRUST UK** 

## **CONSOLIDATED BALANCE SHEET** 

## **AS AT 31 MARCH 2022** 

|**Notes**<br>**Fixed assets**<br>Tangible assets<br>**15**<br>**Current assets**<br>Stocks<br>**16**<br>Debtors<br>**17**<br>Cash at bank and in hand<br>**Creditors: amounts falling due within**<br>**one year**<br>**18**<br>Net current assets<br>**Total assets less current liabilities**<br>**Creditors: amounts falling due after**<br>**one year**<br>**19**<br>**Net assets**<br>**Income funds**<br>Restricted funds<br>**22**<br>Unrestricted funds:<br>Retained within the charity<br>Revaluation reserve<br>Non-charitable trading funds|**2022**<br>**£**<br>**£**<br>1,700,300<br>150<br>53,406<br>638,341<br>691,897<br> (131,911)<br>559,986<br>2,260,286<br> (719,245)<br>1,541,041<br>477,851<br>1,362,359<br>315,106<br>1,677,465<br>(614,275)<br>1,541,041|**2021**<br>**£**<br>**£**<br>1,981,186<br>150<br>51,539<br>726,889<br>778,578<br>(308,514)<br>470,064<br>2,451,250<br>(781,243)<br>1,670,007<br>484,763<br>1,431,407<br>359,525<br>1,790,932<br>(605,688)<br>1,670,007|
|---|---|---|



The financial statements were approved by the board of directors and authorised for issue on 22 March 2023 and are signed on its behalf by: 

C Davies **Trustee** 

**Company Registration No. 5999100** 

- 18 - 



## **C3 TRUST UK** 

## **BALANCE SHEET** 

## **AS AT 31 MARCH 2022** 

|**Notes**<br>**Fixed assets**<br>Tangible assets<br>**15**<br>**Current assets**<br>Stocks<br>**16**<br>Debtors<br>**17**<br>Cash at bank and in hand<br>**Creditors: amounts falling due within**<br>**one year**<br>**18**<br>Net current assets<br>**Total assets less current liabilities**<br>**Creditors: amounts falling due in more**<br>**than one year**<br>**19**<br>**Net assets**<br>**Income funds**<br>Restricted funds<br>**22**<br>Unrestricted funds:<br>General unrestricted funds<br>Revaluation reserve|**2022**<br>**£**<br>100<br>50,356<br>599,618<br>650,074<br>(99,493)<br>695,863<br>419,114|<br>**£**<br>1,698,492<br><br> 550,581<br>2,249,073<br>(673,412)<br>1,575,661<br>460,684<br>1,114,977<br>1,575,661|**2021**<br>**£**<br>100<br>45,019<br>685,835<br>730,954<br>(276,351)<br>774,135<br>463,533|<br>**£**<br>1,979,863<br>454,603<br>2,434,466<br>(731,243)<br>1,703,223<br>465,555<br>1,237,668<br>1,703,223|
|---|---|---|---|---|



The financial statements were approved by the board of directors and authorised for issue on 22 March 2023 and are signed on its behalf by: 

C Davies 

**Trustee** 

**Company Registration No. 5999100** 

- 19 - 



## **C3 TRUST UK** 

## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022** 

||||||**Group**||||
|---|---|---|---|---|---|---|---|---|
|||||**2022**|||**2021**||
||**Notes**|**£**||**£**||**£**||**£**|
|**Cash flow from operating activities**|||||||||
|Cash generated from operations|**27**|||(164,867)|||(546,082)||
|**Investing activities**|||||||||
|Purchase of tangible fixed assets||(14,801)|||(43,597)||||
|Proceeds on disposal of tangible fixed assets||147,135||||842|||
|Interest received||818||||2,374|||
|**Net cash (used in)/ generated from**|||||||||
|**investing activities**||||133,152|||(40,381)||
|**Financing activities**|||||||||
|Proceeds of new bank loans|||-|||50,000|||
|Repayment of bank loans||(56,833)|||(27,388)||||
|**Net cash (used in)/generated from**|||||||||
|**financing activities**||||(56,833)|||22,612||
|**Net (decrease)/increase in cash and cash**|||||||||
|**equivalents**||||(88,548)|||(563,851)||
|Cash and cash equivalents at beginning of year||||726,889|||1,290,740||
|**Cash and cash equivalents at end of year**||||638,341|||726,889||
||||||**Charity**||||
|||||**2022**|||**2021**||
|||**£**||**£**||**£**||**£**|
|**Cash flows from operating activities**|||||||||
|Cash generated from operations|**27**|||(164,108)|||261,322||
|**Investing activities**|||||||||
|Purchase of tangible fixed assets||(13,229)|||(43,597)||||
|Proceeds on disposal of tangible fixed assets||147,135||||842|||
|Interest received||818||||2,374|||
|**Net cash (used in)/ generated from**|||||||||
|**investing activities**||||134,724|||(40,381)||
|**Financing activities**|||||||||
|Repayment of bank loans||(56,833)|||(27,388)||||
|**Net cash used in financing activities**||||(56,833)|||(27,388)||
|**Net (decrease)/increase in cash and cash equivalents**||||(86,217)|||193,553||
|Cash and cash equivalents at beginning of year||||685,835|||492,282||
|**Cash and cash equivalents at end of year**||||599,618|||685,835||



- 20 - 



**C3 TRUST UK** 

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

## **1 Accounting policies** 

## **Company information** 

C3 Trust UK 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. 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 whilst recognising the issues raised in respect of going concern. 

Since the 2021/2022 financial year the charity has been financially impacted by the effects of COVID, its own internal and organisational challenges, which took place in 2020, and by the subsequent agreed and intentional restructure of the charity, effected through the release of City Hearts UK, and the strategy to release churches to become independent legal entities in their own right. These have had the effect of significantly reducing the charity’s income and associated assets and reserves. At the same time, significant attention has been given to the stabilisation and recovery of the remaining churches. The Trustees have agreed to release churches and in doing so, to donate the cash reserves and capital equipment which local church donations have funded. This has had a consequential and negative impact on the overall financial strength of the charity, however this is being met with the financial recovery of the remaining churches with C3 Hope in Sheffield being the strongest of these financially, closely followed by C3 YRKS. 

At the time of compiling and completing these accounts, the Trustees are confident that despite divesting itself of assets the charity’s income and growth trends and recovery provide positive signs that the charity’s position is and will continue to improve. Despite the plan to release C3 Newcastle, for example, the C3 Trust UK will retain its tenancy at 85 City Road and thereby retain the asset value of the investment in the refurbishment of these premises. Similarly, the retention of C3 Liverpool as part of C3 Trust UK will also ensure that the significant investment and asset value contained in the refurbishment of the Kempston Street property will be retained. In addition, recent investment in The Hope Centre is likely to either enhance or retain the asset value of the building. 

In cash terms the three remaining churches which now from C3 Trust UK, continue to work closely to ensure that tight monitoring, review and controls are in place to invest into, and track church recovery and health, which is and will improve the financial position of the charity over the coming months. Across the group of companies we continue to closely monitor risk and exposure at Executive and NonExecutive levels to ensure that recovery is accelerated and the impact is mitigated through sound financial planning. 

- 21 - 



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

## **C3 TRUST UK** 

All these things considered, the Trustees are confident that the charity can continue as a going concern both throughout the next twelve months and the foreseeable future. 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 Hope Centre Limited activities represents amounts receivable for goods and services net of VAT. 

## **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. 

- 22 - 



**C3 TRUST UK** 

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

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% 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. 

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. 

- 23 - 



## **C3 TRUST UK** 

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

## **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. 

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 

- 24 - 



**C3 TRUST UK** 

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

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. 

## _**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. 

- 25 - 



## **C3 TRUST UK** 

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

|**3**<br>**Donations and gifts**<br> <br>**Unrestricted Restricted**<br> **funds           funds**<br>**£** **£** <br>Donations and gifts<br>1,109,159<br>109,467<br>Grants<br>2,405<br>30,000<br>Coronavirus Job<br>Retention Scheme<br>3,140<br> -<br>1,114,704<br>139,467<br> <br>**Unrestricted Restricted**<br> **funds           funds**<br>**£** **£** <br>Donations and gifts<br>1,076,165<br>-<br>Grants<br>-<br>30,000<br>Coronavirus Job<br>Retention Scheme<br> -<br> -<br>1,076,165<br>30,000|**Group**<br>**Total      Unrestricted Restricted**<br>**2022              funds          funds**<br> **£** **£                 £**<br>1,218,626<br>1,263,765<br>285,950<br>32,405<br>-<br>-<br>3,140<br>60,171  -<br>1,254,171<br>1,323,936<br>285,950<br>**Charity**<br>**Total       Unrestricted Restricted**<br>**2022              funds          funds**<br> **£** **£                 £**<br>1,076,165<br>1,261,465<br>249,866<br>30,000<br>-<br>-<br> -<br>16,380  -<br>1,106,165<br>1,277,845<br>249,866|**Total**<br>**2021**<br>**£**<br>1,549,715<br>-<br>60,171<br>1,609,886<br>**Total**<br>**2021**<br>**£**<br>1,511,331<br>-<br>16,380<br>1,527,711|
|---|---|---|



## **4 Charitable activities** 

|Sales within charitable activities<br>Charitable rental income, recharges<br>and other income|**Group**<br>**2022**<br>**£**<br>312,294<br>26,136<br>338,430|<br>**2021**<br> <br>**£**<br> <br>241,797<br>239,391<br>481,188|**Charity**<br>**2022**<br>**2021**<br>**£                £**<br>2,938<br>5,902<br>73,651<br>273,966<br>76,589<br>279,868|
|---|---|---|---|



- 26 - 



## **C3 TRUST UK** 

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

## **5 Other trading activities** 

|<br> <br>Hope Centre Limited<br>Sales of books and resources<br> <br> <br>Sales of books and resources|**Group**<br>**2022          2021**<br>**£                £**<br>51,082<br>24,228<br>598<br>1,582<br>51,680<br>25,810<br>**Charity**<br>**2022          2021**<br>**£**<br>**£**<br>598<br>1,582|
|---|---|



## **6 Investments** 

|<br>**Unrestricted Restricted**<br> **funds           funds**<br>**£** **£** <br>Interest receivable<br>818<br> <br>**Unrestricted Restricted**<br> **funds           funds**<br>**£** **£** <br>Interest receivable<br>818<br>**7**<br>**Other income**<br> <br> <br> <br>Gain on disposal of tangible fixed assets<br>Sundry income|**Group**<br>**Total      Unrestricted   Restricted      Total**<br>**2022             funds            funds           2021**<br> **£** **£                   £                   £**<br>818<br>2,374<br> -<br>2,374<br>**Charity**<br>**Total      Unrestricted   Restricted      Total**<br>**2022             funds            funds           2021**<br> **£** **£                   £                   £**<br>818<br>2,374<br> -<br>2,374<br>**Group                             Charity**<br> **2022          2021               2022            2021**<br>**£                 £                    £                   £**<br>-<br>842<br>-<br>842<br>62,866<br> -<br>62,866<br> -<br>62,866<br>842<br>62,866<br>842|
|---|---|



- 27 - 



## **C3 TRUST UK** 

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

|**8**<br> <br> <br>|**Raising funds**<br> <br>**Unrestricted Restricted**<br> **funds           funds**<br>  **£** **£** <br>Fundraising and publicity<br>Staging fundraising events<br>15,150<br> -<br>15,150<br> -<br>Trading costs<br>Other trading activities<br>49,175<br>2,027<br>64,325<br>2,027|**Group**<br>**Total      Unrestricted Restricted   Total**<br>**2022             funds          funds        2021**<br> **£** **£                 £                £**<br>15,150<br>15,001<br>849<br>15,850<br>15,150<br>15,001<br>849<br>15,850<br>51,202<br>58,015<br> -<br>58,015<br>66,352<br>73,016<br>849<br>73,865|
|---|---|---|



Raising funds include payments to the auditors of £1,700 (2021: £1,750) for services not connected to the charity and consolidated group accounts. 

|<br>|<br>**Unrestricted Restricted**<br> **funds           funds**<br>  **£** **£** <br>Fundraising and publicity<br>Staging fundraising events<br>15,150<br> -<br> 15,150<br> -<br>Trading costs<br>Other trading activities<br>71<br> -<br>15,221<br> -|**Charity**<br>**Total      Unrestricted Restricted   Total**<br>**2022             funds          funds        2021**<br> **£** **£                 £                £**<br>15,150<br>15,001<br>849<br>15,850<br>15,150<br>15,001<br>849<br>15,850<br>71<br>1,174<br> -<br>1,174<br>15,221<br>16,175<br>849<br>17,024|
|---|---|---|



- 28 - 



## **C3 TRUST UK** 

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

## **9 Charitable activities** 

|<br> <br>Staff costs<br>Depreciation and impairment<br>Church departments and events<br>Minister’s consultancy fees<br>Food and drink<br>Activities and outings<br>Hospitality and gifts<br>Rent, rates, and service charges<br>Insurance and utilities<br>Repairs and cleaning<br>Hire of office equipment<br>Subscriptions<br>Postage, stationery and adverts<br>Telephone and fax<br>Motor and travel expenses<br>Bad and doubtful debts<br>Educational activities<br>Legal, professional and consultancy fees<br>Staff recruitment and training<br>Catering costs<br>General expenses<br>Bank interest and charges<br>Loss on disposal of tangible fixed assets<br>Grant funding of activities (see note 10)<br>Share of governance costs (see note 11)<br>**Analysis by fund**<br>Unrestricted funds<br>Restricted funds|**Group**<br>**2022**<br>**2021**<br>**£                  £**<br> <br>851,755<br>971,151<br>122,620<br>126,238<br>34,939<br>10,944<br>-<br>7,625<br>-<br>8,106<br>-<br>137<br>17,820<br>19,001<br>135,791<br>211,316<br>75,195<br>90,026<br>150,820<br>140,293<br>17,047<br>17,364<br>34,801<br>22,885<br>14,452<br>12,493<br>4,957<br>8,377<br>8,515<br>16,271<br>(104)<br>3,964<br>-<br>3,337<br>120,571<br>135,556<br>1,216<br>1,661<br>-<br>4,401<br>92,438<br>77,374<br>17,454<br>19,003<br>25,933<br> -<br>1,726,220<br>1,907,523<br>39,879<br>-<br>4,480<br>4,024<br>1,770,579<br>1,911,547<br>1,626,167<br>1,681,647<br>144,412<br>229,900<br>1,770,579<br>1,911,547|**Charity**<br>**2022**<br>**2021**<br>**£** **£**<br>504,885<br>751,483<br>121,532<br>125,396<br>34,939<br>10,944<br>-<br>7,625<br>-<br>-<br>-<br>-<br>17,820<br>19,001<br>124,600<br>211,316<br>72,526<br>88,468<br>143,510<br>135,038<br>10,068<br>17,364<br>34,665<br>22,885<br>7,381<br>10,075<br>2,506<br>8,377<br>8,515<br>16,271<br>-<br>-<br>-<br>-<br>106,163<br>125,003<br>-<br>-<br>-<br>-<br>77,313<br>70,113<br>12,642<br>17,661<br>25,933<br> -<br>1,304,998<br>1,637,020<br>39,879<br>-<br>4,000<br>4,024<br>1,348,877 1,641,044<br>1,314,006<br>1,428,020<br>34,871<br>213,024<br>1,348,877<br>1,641,044|
|---|---|---|



- 29 - 



## **C3 TRUST UK** 

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

## **10 Grants payable** 

|**Grants payable**|||
|---|---|---|
|<br> <br>Grants to institutions<br> <br>Grants to individuals|**Group**<br>**2022**<br>**2021**<br>**£                  £**<br>39,879<br>-<br> -<br>  -<br>39,879<br> -||
|||-|



A grant of £32,153 was paid to Hope City Accra and £7,726 to Hope City Kuala Lumpur on leaving the C3 Trust UK group. 

|<br> <br>Grants to institutions<br>Grants to individuals|**Charity**<br>**2022**<br>**2021**<br>**£                  £**<br>39,879<br>-<br> -<br> -<br>39,879<br> -|
|---|---|



## **11 Support costs** 

|**Group and Charity**<br>**Support    Governance      2022       Support Governance**<br> **costs             costs                               costs           costs**<br>  **£** **£** **£** **£                 £**<br>Audit fees<br> -<br>4,480<br>4,480<br> -<br>4,024<br>4,480<br>4,480<br> -<br>4,024<br>Analysed between<br>Charitable activities<br>4,480<br>4,480<br> -<br>4,024|**2021**<br>**£**<br>4,024|
|---|---|
||<br>4,024|
||<br>4,024|



## **Group** 

Governance costs includes payments to the auditors of £4,480 (2021: £4,024) for audit fees.  Charitable activities costs includes payments of £8,800 (2021: £7,280) to the auditors for other services. 

## **Charity** 

Governance costs includes payments to the auditors of £4,000 (2021: £4,024) for audit fees.  Charitable activities costs includes payments of £5,000 (2021: £5,000) to the auditors for other services. 

- 30 - 



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

## **C3 TRUST UK** 

## **12 Trustees** 

C Davies received emoluments of £19,489 (2021: £31,614) and pension contributions of £2,550 (2021: £1,750) during the year.  A company owned and controlled by C Davies and his wife received £26,090 (2021: £11,155) for providing payroll and consultancy services to the charity.  They received £28,301 (2021: £13,305) for providing payroll and consultancy services to the group.  C Davies and his wife made donations totalling £6,920 (2021: £16,380) to the church with donations being made personally by both of them and also making donations from their business. 

A E Ibbotson received emoluments of £20,943 (2021: £21,051) during the year. 

None of the other trustees received emoluments or benefits during the year (2021: £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**|
|---|---|---|---|---|
||**2022**|**2021**|**2022**|**2021**|
||**Number**|**Number**|**Number**|**Number**|
|Trustees of C3 Trust UK|6|6|6|6|
|Trustees / directors of subsidiaries|3|3|-|-|
|Employees|53|65|28|33|
||62|74|34|39|



- 31 - 



## **C3 TRUST UK** 

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

## **13 Employees (continued)** 

## **Employment costs** 

|**Employment costs**|||||||
|---|---|---|---|---|---|---|
||||**Group**||||
||**Raising    Charitable**||**Raising**||**Charitable**||
||**funds**|**activities**|**2022**|**funds**|**activities**|**2021**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|Wages and salaries|24,030|784,285|808,315|24,249|888,868|913,117|
|Social security costs|1,608|39,875|41,483|1,355|50,350|51,705|
|Other pension costs|615|27,595|28,210|558|31,933|32,491|
||26,253|851,755|878,008|26,162|971,151|997,313|
||||||**Charity**||
||||||**2022**|**2021**|
||||||**£**|**£**|
|Wages and salaries|||||455,111|684,552|
|Social security costs|||||28,579|40,135|
|Other pension costs|||||21,195|26,796|
||||||504,885|751,483|
||||||**Group and Charity**||
||||||**2022**|**2021**|
|The number of employees|whose annual remuneration||was £60,000|or more|||
|were;|||||||
||||||-|-|



Contributions totalling £nil (2021: £ nil) were made to defined contribution pension schemes on behalf of employees whose emoluments exceed £60,000. 

## **14 Other** 

|Bad debts|**Group**<br>**2022** **2021**<br>**£**<br>**£**<br> -<br> -<br> -<br> -|**Charity**<br>**2022**<br>**2021**<br>**£**<br>**£**<br>10,500<br>26,950<br>10,500<br>26,950|
|---|---|---|



- 32 - 



## **C3 TRUST UK** 

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

## **15 Tangible fixed assets** 

|**Group**<br>**Freehold       Long           Fixtures**<br>**property    leasehold       fittings &**<br>**property      equipment**<br>**£                  £                    £**<br>**Cost**<br>At 1 April 2021<br>140,000<br>1,975,806<br>856,725<br>Additions at cost<br>-<br>6,653<br>8,148<br>Disposals<br>(140,000)(29,279)<br>(61,382)<br>At 31 March 2022<br> -<br>1,953,180<br>803,491<br>**Depreciation and impairment**<br>At 1 April 2021<br>-<br>211,243<br>780,102<br>Charge for the year<br>-<br>86,877<br>35,742<br>Eliminated in respect of disposals<br> -<br>(2,094)<br>(55,499)<br>At 31 March 2022<br> -<br>296,026<br>760,345<br>**Carrying amount**<br>At 31 March 2022<br> -<br>1,657,154<br>43,146<br>At 31 March 2021<br>140,000<br>1,764,563<br>76,623<br>**Charity**<br>**Freehold       Long           Fixtures**<br>**property    leasehold       fittings &**<br>**property      equipment**<br>**£                  £                    £**<br>**Cost**<br>At 1 April 2021<br>140,000<br>1,975,806<br>796,609<br>Additions at cost<br>-<br>6,653<br>6,576<br>Disposals<br>(140,000)(29,279)<br>(61,382)<br>At 31 March 2022<br> -<br>1,953,180<br>741,803<br>**Depreciation and impairment**<br>At 1 April 2021<br>-<br>211,243<br>721,309<br>Charge for the year<br>-<br>86,877<br>34,655<br>Eliminated in respect of disposals<br> -<br>(2,094)<br>(55,499)<br>At 31 March 2022<br> -<br>296,026<br>700,465<br>**Carrying amount**<br>At 31 March 2022<br> - <br>1,657,154<br>41,338<br>At 31 March 2021<br>140,000<br>1,764,563<br>75,300|**Total**<br>**£**<br>2,972,531<br>14,801<br>(230,661)<br>2,756,671<br>991,345<br>122,619<br>(57,593)<br>1,056,371<br>1,700,300<br>1,981,186<br>**Total**<br>**£**<br>2,912,415<br>13,229<br>(230,661)<br>2,694,983<br>932,552<br>121,532<br>(57,593)<br>996,491<br>1,698,492<br>1,978,863|
|---|---|



- 33 - 



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

## **C3 TRUST UK** 

## **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 £24,247 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 2022 would not differ significantly from this valuation. 

## **Group** 

Some of the charity’s leasehold and freehold land and buildings are subject to a mortgage with the balance owed at 31 March 2022 amounting to 55% (2021: 57%) 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 2022 amounting to 55% (2021: 57%) of their net book value as stated in these accounts. 

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

||**Group**|**Group**|**Charity**|**Charity**|
|---|---|---|---|---|
||**2022**|**2021**|**2022**|**2021**|
||**£**|**£**|**£**<br>|**£**|
|Cost|1,517,030|1,652,496|1,401,120|1,536,586|
|Accumulated depreciation|654,365|661,062|562,702|576,894|
|At 31 March 2022|862,665|991,434|838,418|959,692|



All other tangible fixed assets are stated at historical cost. 

## **16 Stocks** 

|<br> <br> <br>Goods for resale|**Group**<br>**Charity**<br>**2022          2021**<br>**2022**<br>**£               £                  £**<br>150<br>150<br>100|**2021**<br>**£**<br>100|
|---|---|---|



- 34 - 



## **C3 TRUST UK** 

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

|**17**<br>**Debtors**<br> <br> <br> <br>Trade debtors<br>Amounts due from subsidiary undertakings<br>Other debtors<br>Prepayments and accrued income|**Group**<br>**2022            2021**<br> <br>**£**<br>**£**<br>10,180<br>11,363<br>-<br>-<br>37,892<br>30,551<br>5,334<br>9,625<br>53,406<br>51,539|**Charity**<br>**2022               2021**<br>**£                   £**<br>2,302<br>5,052<br>16,461<br>1,688<br>26,259<br>29,304<br>_5,334<br>8,975<br> 50.356<br>45,019|
|---|---|---|



|**18**<br>**Creditors: amounts falling due within one year**<br> <br> <br> <br>Bank loans and overdrafts<br>Trade creditors<br>Taxation and social security<br>Other creditors<br>Accruals<br>Deferred income|**Group**<br>**2022            2021**<br> <br>**£**<br>**£**<br>66,993<br>60,695<br>16,640<br>51,232<br>-<br>4,155<br>32,964<br>165,283<br>15,314<br>16,911<br> -<br>10,238<br>131,911<br>308,514|**Charity**<br>**2022               2021**<br>**£                    £**<br>54,049<br>53,051<br>14,985<br>43,599<br>587<br>4,155<br>16,070<br>153,501<br>13,802<br>11,807<br>______-<br>10,238<br>99,493<br>276,351|
|---|---|---|



- 35 - 



## **C3 TRUST UK** 

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

## **19 Creditors: amounts falling due after more than one year** 

|<br> <br> <br>Mortgage and loan<br>**Analysis of mortgage and loan**<br>Not wholly repayable within five years by instalments<br>Wholly repayable within five years<br>Included in current liabilities<br>**Loan maturity analysis**<br>Debt due in one year or less<br>In more than one year but not more than two years<br>In more than two years but not more than five years<br>In more than five years|**Group**<br>**2022               2021**<br>**£                      £**<br>719,245<br>781,243<br>446,859<br>508,872<br>330,602<br>325,422<br>777,461<br>834,294<br>(58,216)<br>(53,051)<br>719,245<br>781,243<br>58,216<br>53,051<br>63,398<br>64,048<br>208,988<br>208,324<br>446,859<br>508,872<br>777,461<br>834,294|
|---|---|



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

|Mortgage<br>**Analysis of loans**<br>Not wholly repayable within five years by instalments<br>Wholly repayable within five years<br>Included in current liabilities<br>**Loan maturity analysis,**<br>Debt due in one year or less<br>In more than one year but not more than two years<br>In more than two years but not more than five years<br>In more than five years|**Charity**<br>**2022**<br>**2021**<br>**£**<br>**£**<br>673,412<br>731,243<br>446,859<br>508,872<br>280,602<br>275,422<br>727,461<br>784,294<br>(54,049)<br>(53,051)<br>673,412<br>731,243<br>54,049<br>53,051<br>55,065<br>54,048<br>171,488<br>168,324<br>446,859<br>508,872<br>727,461<br>784,294|
|---|---|



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

- 36 - 



## **C3 TRUST UK** 

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

|**20**<br>**Deferred income**<br> <br> <br> <br>Other deferred income<br>**21**<br>**Pension and other post-retirement benefit commitments**<br>**Defined contribution**<br>**Group**<br>**2022               2021**<br>**£                     £**<br>Contributions payable by the group<br>and charity for the year<br>28,210<br>32,491|**Group and Charity**<br>**2022**<br>**2021**<br>**£                      £**<br> -<br>10,238<br>**Charity**<br>**2022**<br>**2021**<br>**£**<br>**£**<br>15,285<br>17,681|
|---|---|



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. 

- 37 - 



## **C3 TRUST UK** 

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

## **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**<br> **Movement in funds**<br>**Balance at      Incoming      Resources**<br>**Balance at       Incoming     Resources**<br> **1 April 2020    resources      expended    31 March 2021   resources     expended     Transfers**<br> **£** **£** **£** **£                    £                      £**<br>Dream Offering<br>492,562<br>249,866<br>(213,873)<br>465,555<br>-<br>(34,871)<br>-<br>Garfield Weston Foundation<br>-<br>-<br>-<br>-<br>30,000<br>-<br>-<br>Henry Smith Charity<br>-<br>16,550<br>(6,763)<br>9,787<br>33,100<br>(38,957)<br>-<br>Hope Hampers<br>-<br>11,905<br>(10,113)<br>1,792<br>2,493<br>(947)<br>-<br>Neon Schools Programme<br>-<br>4,629<br>-<br>4,629<br>37<br>-<br>-<br>Befriending/ Jigsaw Services<br>-<br>3,000<br>-<br>3,000<br>-<br>(1,681)<br>-<br>Kickstart<br>-<br>-<br>-<br>-<br>70,465           (68,415)<br>-<br>Pola Dot Playgroup<br>-<br>-<br>-<br>-<br>500<br>(560)<br>60<br>Share the Light<br> -<br> - -<br> -<br>2,872<br>(1,008)<br> -<br>429,562<br>285,950<br>(230,749)<br>484,763<br>139,467<br> (146,439)<br> 60<br> **Charity**<br> **Movement in funds**<br>**Balance at      Incoming      Resources    Balance at       Incoming     Resources**<br> **1 April 2020    resources      expended   31 March 2021   resources     expended     Transfers**<br>£**£** **£** **£** **£                    £                      £**<br>Dream Offering<br>429,562<br>249,866<br>(213,873)<br>465,555<br>-<br>(34,871)<br>-<br>Garfield Weston Foundation<br>______-<br>______-<br> -<br> -<br>30,000<br> -<br> -<br>429,562<br>249,866<br>(213,873)<br>465,555<br> 30,000<br> (34,871)<br> -|**Balance at**<br>**31 March 2022**<br>**£**<br>430,684<br>30,000<br>3,930<br>3,338<br>4,666<br>1,319<br>2,050<br>-<br>1,864<br>477,851<br>**Balance at**<br>**31 March 2022**<br>**£**<br>430,684<br>30,000<br>460,684|
|---|---|



- 38 - 



## **C3 TRUST UK** 

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

## **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. 

During this financial year we received a donation from Garfield Weston Foundation that will contribute towards the cost of essential roof works to the Hope Centre building in Sheffield which is scheduled to be completed by the end of January 2023. 

The charity received the second 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 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 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. 

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

Polka Dots Playgroup 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. 

- 39 - 



## **C3 TRUST UK** 

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

## **23 Analysis of net assets between funds** 

|**23**<br>**Analysis of net assets between funds**|||
|---|---|---|
|<br>**Unrestricted   Restricted**<br>**funds            funds**<br>**2022             2022**<br>**£                   £**<br>Fund balances at<br>31 March 2022 are<br>represented by:<br>Tangible assets<br>1,700,300<br>-<br>Current assets/(liabilities)<br>82,135<br>477,851<br>Long term liabilities<br>(719,245)<br> -<br>1,063,190<br>477,851<br>**Unrestricted   Restricted**<br>**funds            funds**<br>**2022             2022**<br>**£                   £**<br>Unrealised gains<br>included above:<br>On tangible fixed assets<br>315,106<br> -<br>315,106<br> -<br>Reconciliation of movements<br>in unrealised gains:<br>Unrealised gains at<br>1 April 2021<br>359,525<br>-<br>Revalued element of fixed<br>assets sold during period<br>(44,419)<br>-<br>Revaluation of tangible<br>fixed asset<br> -<br> -<br>Unrealised gains at<br>31 March 2022<br>315,106<br> -|**Group**<br>**Unrestricted Restricted**<br>**Total             funds          funds**<br>**2022              2021           2021**<br>**£                    £                 £**<br>1,700,300<br>1,981,186<br>-<br>559,986<br>(14,699)<br>484,763<br>(719,245) (781,243)<br> -<br>1,541,041<br>1,185,244<br>484,763<br>**Unrestricted Restricted**<br>**Total             funds          funds**<br>**2022              2021           2021**<br>**£                    £                 £**<br>315,106<br>359,525<br> -<br>315,106<br>359,525<br> -<br>359,525<br>376,427<br>-<br>(44,419)<br>-<br>-<br> -<br>(16,902)<br> -<br>315,106<br>359,525<br> -|<br>**Total**<br>**2021**<br>**£**<br>1,981,186<br>470,064<br>(781,243)<br>1,670,007<br> <br>**Total**<br>**2021**<br>**£**<br>359,525<br>359,525<br>376,427<br>-<br>(16,902)<br>359,525|
||<br> <br> <br>|<br> <br> <br>|



- 40 - 



## **C3 TRUST UK** 

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

|**23**<br>**Analysis of net assets between funds (continued)**<br> <br>**Unrestricted   Restricted**<br>**funds            funds**<br>**2022             2022**<br>**£                   £**<br>Fund balances at<br>31 March 2022 are<br>represented by:<br>Tangible assets<br>1,698,492<br>-<br>Current assets/(liabilities)<br>89,897<br>460,684<br>Long term liabilities<br>(673,412)<br> -<br>1,114,977<br>460,684<br>**Unrestricted   Restricted**<br>**funds            funds**<br>**2022             2022**<br>**£                   £**<br>Unrealised gains<br>included above:<br>On tangible fixed assets<br>419,114<br> -<br>419,114<br> -<br>Reconciliation of movements<br>in unrealised gains:<br>Unrealised gains at<br>1 April 2021<br>463,533<br>-<br>Revalued element of fixed<br>assets sold during period<br>(44,419)<br>-<br>Revaluation of tangible<br>fixed asset<br> -<br> -<br>Unrealised gains at<br>31 March 2022<br>419,114<br> -|**Charity**<br>**Unrestricted Restricted**<br>**Total             funds          funds**<br>**2022              2021           2021**<br>**£                    £                 £**<br>1,698,492<br>1,979,863<br>-<br>550,581<br>(3,952)<br>458,555<br>(673,412)(731,243)<br> -<br>1,575,661 1,244,668<br>458,555<br>**Unrestricted Restricted**<br>**Total             funds          funds**<br>**2022              2021           2021**<br>**£                    £                 £**<br>419,114<br>463,533<br> - <br>419,114<br>463,533<br> - <br>463,533<br>480,435<br>-<br>(44,419)<br>-<br>-<br> - <br>(16,902)<br> -<br>419,114<br>463,533<br> -|<br>**Total**<br>**2021**<br>**£**<br>1,979,863<br>454,603<br>(731,243)<br>1,703,223<br> <br>**Total**<br>**2021**<br>**£**<br>463,533<br>463,533<br>480,435<br>-<br>(16,902)<br>463,533|
|---|---|---|
||<br> <br> <br> <br>|<br> <br> <br>|



- 41 - 



## **C3 TRUST UK** 

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

## **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<br>Between two and five years<br>In over five years|**Group**<br>**2022**<br>**2021**<br>**£**<br>**£**<br>106,606<br>99,999<br>296,122<br>330,768<br>111,000<br>161,875<br>513,728<br>592,642|**Charity**<br>**2022**<br>**2021**<br>**£**<br>**£**<br>106,606<br>97,129<br>296,122<br>330,768<br>111,000<br>161,875<br>513,728<br>589,772|
|---|---|---|



## **Capital commitments** 

The group and charity had no capital commitments at 31 March 2022. 

## **25 Related party transactions** 

## **Remuneration of key management personnel** 

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

|<br>Aggregate compensation<br>|**Group**<br>**2022**<br> <br>**£**<br> 11,893|<br>**2021**<br>**£**<br>58,704|**Charity**<br>**2022**<br>**£**<br> -|<br>**2021**<br>**£**<br>43,368|
|---|---|---|---|---|



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. 

## **26 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 carries out 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 £8,045 (2021: £16,162).  During the year ended 31 March 2022 its total incoming resources were £457,361 (2021: £309,923) and its total resources expended were £465,478 (2021: £310,836) leaving a net decrease in funds of £8,117 (2021: £913). 

C3 Trust UK owns 100% of the ordinary share capital of **Hope Centre Limited** (formerly Megacentre Limited), a trading company which generates funds for the church.  Hope Centre 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 2022 the net liabilities of Hope Centre were £614,175 (2021: £605,588).  Its turnover for the year ended 31 March 2022 was £51,082 (2021: £24,228) and its total resources expended were £59,669 (2021: £49,194) leaving a loss for the year of £8,587 (2021: £24,966). 

- 42 - 



## **C3 TRUST UK** 

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

|**27**|**Cash generated from operations**||||||
|---|---|---|---|---|---|---|
||||**Group**||**Charity**||
|||**2022**||**2021**|**2022**|**2021**|
|||**£**||**£**|**£**|**£**|
||Surplus/(deficit) for the year|(128,966)||(1,711,804)|(127,562)|127,359|
||Adjustments for:||||||
||Investment income recognised in statement||||||
||of financial activities|(818)||(2,374)|(818)|(2,374)|
||Loss/(gain) on disposal of tangible fixed assets|25,933||(842)|25,933|(842)|
||Depreciation and impairment of tangible||||||
||fixed assets|122,620||126,238|121,532|125,396|
||Net cash flow from City Hearts (UK)||||||
||leaving the group||-|281,096|-|-|
||Movements in working capital:||||||
||Decrease in stock||-|900|-|900|
||Decrease/(increase) in debtors|(1,868)||892,985|(5,337)|55,606|
||(Decrease)/increase in creditors|(181,768)||(75,388)|(167,618)|(54,961)|
||Increase/(decrease) in deferred income||-|(56,893)|(10,238)|10,238|
||**Cash generated from/(absorbed by)**||||||
||**operations**|(164,867)||(546,082)|(164,108)|261,322|
|**28**|**Analysis of changes in net (debt)/funds**||||||
||||||**Group**||
|||||**At 1 April**|**Cash**|**At 31 March**|
|||||**2021**|**flows**|**2022**|
|||||**£**|**£**|**£**|
||Cash at bank and in hand|||726,889|(88,548)|638,341|
||Loans falling due within one year|||(60,695)|2,480|(58,215)|
||Loans falling due after more than one year|||(781,243)|61,998|(719,245)|
|||||(115,049)|(24,070)|(139,119)|
||||||**Charity**||
|||||**At 1 April**|**Cash**|**At 31 March**|
|||||**2021**|**flows**|**2022**|
|||||**£**|**£**|**£**|
||Cash at bank and in hand|||685,835|(86,217)|599,618|
||Loans falling due within one year|||(53,051)|(998)|(54,049)|
||Loans falling due after more than one year|||(731,243)|57,831|(673,412)|
|||||(98,459)|(29,384)|(127,843)|



- 43 -