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2020-12-31-accounts

Charity Registration No. 1132699

Company Registration No. 06940221 (England and Wales)

THE C3 CHURCH

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

THE C3 CHURCH

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Steve Campbell Alison Seekings Peter Goodliffe Anna Harvey Stephen Ansa-Addo (Appointed 24 September 2020) Elspeth Darley (Appointed 28 January 2021) Timothy Pilkington (Appointed 22 July 2021) Leadership team Steve Campbell Angie Campbell Joshua Campbell Katie Campbell Holly Miller Robert Allin John Wilson Charity number 1132699 Company number 06940221 Registered office C3 Centre 2 Brooks Road Cambridge Cambridgeshire United Kingdom CB1 3HR Auditor Azets Audit Services Ruthlyn House 90 Lincoln Road Peterborough United Kingdom PE1 2SP

THE C3 CHURCH

CONTENTS

Page
Trustees' report 1 - 5
Statement of trustees' responsibilities 6
Independent auditor's report 7 - 9
Statement of financial activities 10 - 11
Balance sheet 12 - 13
Statement of cash flows 14
Notes to the financial statements 15 - 29

THE C3 CHURCH

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees present their report and financial statements for the year ended 31 December 2020.

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 governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

Objectives and activities

The objects of the charity laid down in the Memorandum and Articles of Association are, for the benefit of the public:

in such ways and in such parts of the United Kingdom or the world as the trustees from time to time may think fit.

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

The core activities undertaken to further the objects of the charity are:

These activities have been reviewed to ensure they continue to reflect our aims and they have remained unchanged since the last annual report of the trustees.

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the charity continues and that the appropriate training is arranged. It is the policy of the charity that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Achievements and performance

Despite a global pandemic 2020 was another year of developing opportunities for The C3 Church (‘C3’) however the methods of delivery had to change in order to serve the congregation and wider community through long periods of lockdown. At the beginning of March 2020 as it became clear that the UK was about to enter a period of lockdown the leadership team reviewed the resources available and agreed that everything should be focussed into either Content (production and delivery of digital content for online platforms) or Care (enhancing the work of C3 Impact into the community).

THE C3 CHURCH

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

Existing and new initiatives that have taken place both online and physically when permitted include:

- The Alpha Course - Youth and children programmes
- Prayer Events - CAP Job Club
- Baptisms - Foodbank distribution point
- Breathe Women’s events - The C3 Academy
- Ascend Men’s events - Marriage and Parenting Courses
- Wellbeing courses - C3 Impact Hubs
- Sunday Services - Parent and toddler support groups
- Leadership training events - Worship events
- Weddings - Global Leadership Summit
- Young Adult events - Business and workplace events
- Discipleship courses - Griefshare Courses

Whilst many of the above activities had to move to online platforms, wherever feasible the initiatives were continued given the significant benefit to the wider community and church members alike. In particular the activities of C3 Impact through community hubs were significantly enhanced as a response to the needs arising from the covid pandemic and C3 were able to offer much needed support to vulnerable local people and act as a signpost to other support services.

The above activities and initiatives would not be able to take place without the generous giving through tithes, offerings and other donations of the C3 congregation and community. We are also grateful to have received significant grant funding during 2020 primarily to support the work of C3 Impact during the pandemic from the following: Stewardship Services Rapid Relief Fund; DEFRA; DCMS via Church Restoration Trust; Cambridge Community Foundation; Cambridge City Council; Cambridge City Foodbank; Cole Charitable Trust; The Coop Local Community Fund; Acts 435; Kingsgate Community Church; Samaritans Purse and Transforming Lives for Good. Through this support over 133,000 meals were provided to individuals and families in need.

Sunday services moved to online platforms during lockdown and whilst in person meeting were re-introduced when permitted subject to the necessary restrictions and social distancing, all services have continued to be streamed online. The priority has been on ensuring that engagement with worship, prayer and teaching has been fully accessible to all members and for many the move to online has increased the accessibility to church.

UK Charit i es and Connections

As with last year we have continued to develop and strengthen very positive relationships with a number of national charities and groups that are making significant impact on various sectors of society. Whilst many in person courses had to be suspended, other online support provisions were introduced. These include:

THE C3 CHURCH

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

Additionally, we have sought to keep a global perspective in working with individuals, groups and churches across the world. This has included:

Volunteer team

To continue our activities, we are dependent on volunteers who freely give of their time and skills to ensure the efficient and smooth operation of all that we engage in. The effectiveness of C3 Impact was significantly enhanced by many individuals who were able to volunteer whilst on furlough from their employment. We are very grateful to all those who were able to volunteer to enable those who were shielding and most vulnerable to be supported.

One trustee is remunerated as senior pastor. All other trustees are volunteers who give considerable input and expertise to enable C3 to carry out its duties to what we consider to be a very high standard.

We are also extremely grateful for the wisdom and input from out International Advisory Board (IAB) of Kate Coleman, Paul Reid and Jeff Lucas. The in-person meeting scheduled in 2020 unfortunately had to be postponed due to the covid pandemic but was held in early 2021.

Future Developments 20 21

Financial review

The statement of financial activities is set out on page 10 of these financial statements. A summary of the financial results is set out below:

Income generation

The principal source of income comprises tithes and offerings from members. Unrestricted donations and legacies received in the year totalled £1,616,187 (2019 - £1,663,843). Including this, total unrestricted income for the year was £1,688,322 (2019 - £1,883,149) and total restricted income was £117,217 (2019 - £55,066).

THE C3 CHURCH

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

Investment policy

The charity has adopted a policy of investing in low risk investment accounts with CAF Bank, Triodos Bank and Stewardship Services.

Fund raising

The charity relies on voluntary donations from its members for its income. The charity does not employ professional fund raising bodies.

Changes in fixed assets

Details of fixed asset movements are set out in note 12.

Restricted funds

Details of the restricted funds held in the year are set out in note 19.

Reserves policy

It is the policy of the charity to maintain unrestricted funds, which are the free reserves of the charity, at a level which equates to approximately two months' unrestricted expenditure. This provides sufficient funds to cover management, administration and support costs. Unrestricted funds were maintained above this level throughout the period. The charity held free reserves of £452,674 (2019: £357,732) at the year-end which equates to close to four months unrestricted expenditure. The improvement in 2020 resulted from a six-month capital repayment holiday on the mortgage and income received from the government furlough scheme. With the planned expenditure on the C3 Centre kitchen and support of the Colchester multisite it is anticipated these levels will drop back to nearer two months' unrestricted expenditure during 2021. The trustees will keep the level of reserves required under regular review.

Structure, governance and management

The trustees have considered the key operational, financial, and strategic risks that have a bearing on the charity. Suitable management information is available to the trustees on a regular basis to monitor these risks, and allow any mitigating action to be taken to address them.

The trustees, who are also the directors for the purpose of company law, and who served during the year were:

Steve Campbell Howard Kettel (Resigned 25 November 2020) Kevin McIntyre (Resigned 22 July 2021) Alison Seekings Peter Goodliffe Anna Harvey Stephen Ansa-Addo (Appointed 24 September 2020) Elspeth Darley (Appointed 28 January 2021) Timothy Pilkington (Appointed 22 July 2021)

The church activities are led by the leadership team. Trustees are selected by the other members of the trustee board. New trustees are approached from amongst the church membership. They are provided with an induction to explain the operations of the charity and their associated responsibility as trustees. Copies of the Charity Commission guidance are provided. The trustees meet approximately four times a year to review strategy, performance, operating plans, budgets and building matters. Operational decisions are delegated to the leadership team.

THE C3 CHURCH

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.

The trustees' r eport was approved by the Board of Trustees.

Alison Seekings

Dated: 29 September 2021

THE C3 CHURCH

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees, who are also the directors of The C3 Church for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

In preparing these financial statements, the trustees are required to:

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

THE C3 CHURCH

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE C3 CHURCH

Opinion

We have audited the financial statements of The C3 Church (the ‘charity’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, 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 financial statements:

Basis for opinion

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

Conclusions 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.

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 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.

THE C3 CHURCH

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE C3 CHURCH

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

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

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

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

THE C3 CHURCH

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE C3 CHURCH

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of noncompliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Mr Mark Jackson FCA DChA (Senior Statutory Auditor) for and on behalf of Azets Audit Services 29 September 2021 Chartered Accountants Statutory Auditor Ruthlyn House 90 Lincoln Road Peterborough United Kingdom PE1 2SP

Azets Audit Services is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.

THE C3 CHURCH

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020

Current financial year
Unrestricted Unrestricted
Restricted
funds
funds
funds
general d esignated
2020
2020
2020
Notes
£
£
£
Income and endowments from:
Donations and legacies
3
1,211,810
404,377
98,929
Charitable activities
4
61,319
-
18,288
Investments
5
1,894
-
-
Other income
6
8,922
-
-
Total income
1,283,945
404,377
117,217
Expenditure on:
Charitable activities
7
1,189,103
520,059
42,418
Net income for the year/
Net movement in funds
94,842
(115,682)
74,799
Fund balances at 1 January 2020
357,832
4,086,663
30,554
Fund balances at 31 December
2020
452,674
3,970,981
105,353		 Total
2020
£
1,715,116
79,607
1,894
8,922
1,805,539
1,751,580
53,959
4,475,049
4,529,008		 Total
2019
£
1,694,847
164,615
1,868
26,885
1,888,215
1,754,611
133,604
4,341,445
4,475,049

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.

THE C3 CHURCH

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020

Prior financial year
Unrestricted Unrestricted
Restricted
funds
funds
funds
general d esignated
2019
2019
2019
Notes
£
£
£
Income and endowments from:
Donations and legacies
3
1,080,970
582,873
31,004
Charitable activities
4
140,553
-
24,062
Investments
5
1,868
-
-
Other income
6
26,885
-
-
Total income
1,250,276
582,873
55,066
Expenditure on:
Charitable activities
7
1,181,412
484,367
88,832
Gross transfers between funds
-
(5,217)
5,217
Net income for the year/
Net movement in funds
68,864
93,289
(28,549)
Fund balances at 1 January 2019
288,968
3,993,374
59,103
Fund balances at 31 December 2019
357,832
4,086,663
30,554		 Total
2019
£
1,694,847
164,615
1,868
26,885
1,888,215
1,754,611
-
133,604
4,341,445
4,475,049

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.

THE C3 CHURCH

BALANCE SHEET

AS AT 31 DECEMBER 2020

Notes
Fixed assets
Tangible assets
12
Investments
13
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within
one year
17
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
18
Net assets		 2020
£
£
5,844,178
100
5,844,278
67,109
619,680
686,789
(227,364)
459,425
6,303,703
(1,774,695)
4,529,008		 2019
£
£
6,030,197
100
6,030,297
65,686
495,702
561,388
(224,369)
337,019
6,367,316
(1,892,267)
4,475,049

THE C3 CHURCH

BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2020

2020 2019
Notes £ £ £ £
Income funds
Restricted funds 19 105,353 30,554
Unrestricted funds - designated 3,970,981 4,086,663
Unrestricted funds - general 452,674 357,832
4,529,008 4,475,049

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2020, although an audit has been carried out under section 144 of the Charities Act 2011.

The directors acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The accounts were approved by the Trustees on 29 September 2021

Alison Seekings Trustee

Company Registration No. 06940221

THE C3 CHURCH

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

2020 2019
Notes £ £ £ £
Cash flows from operating activities
Cash generated from operations 24 433,397 514,008
Investing activities
Proceeds on disposal of intangibles - 850
Purchase of tangible fixed assets (194,031) (243,887)
Proceeds on disposal of tangible fixed
assets 317 -
Investment income received 1,894 1,868
Net cash used in investing activities (191,820) (241,169)
Financing activities
Repayment of borrowings - (10,000)
Repayment of bank loans (117,599) (179,633)
Net cash used in financing activities (117,599) (189,633)
Net increase in cash and cash equivalents 123,978 83,206
Cash and cash equivalents at beginning of year 495,702 412,496
Cash and cash equivalents at end of year 619,680 495,702

THE C3 CHURCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Charity information

The C3 Church is a private company limited by guarantee incorporated in England and Wales. The registered office is C3 Centre, 2 Brooks Road, Cambridge, Cambridgeshire, CB1 3HR, United Kingdom.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. In arriving at this conclusion the t rustees have considered the uncertainty regarding the ongoing impact of COVID and whilst the full impact is as yet unknown, they believe that appropriate steps have been taken to mitigate the impact and that they do have sufficient reserves to enable the charity to operate through this period.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

THE C3 CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

Income is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.

1.5 Resources expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

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

1.6 Tangible fixed assets

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

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings 4% straight line on buildings. No depreciation on land. Plant and equipment 25% straight line Motor vehicles 10% or 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.

1.7 Fixed asset investments

Fixed asset investments are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and a ny impairment losses or reversals of impairment losses are recognised immediately in net income/ (expenditure) for the year .

1.8 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

THE C3 CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

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

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Retirement benefits

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

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

THE C3 CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

3 Donations and legacies

Unrestricted Unrestricted
Restricted
Total
funds
funds
funds
2020
general
d esignated
£
£
£
£
Donations and gifts
1,171,693
404,377
98,929
1,674,999
Grant income
40,117
-
-
40,117
1,211,810
404,377
98,929
1,715,116
For the year ended 31 December
2019
1,080,970
582,873
31,004
4
Charitable activities
2020
£
Courses and equipping events
59,346
Resource sales
20,261
79,607
Analysis by fund
Unrestricted funds - general
61,319
Restricted funds
18,288
79,607
5
Investments
2020
£
Interest receivable
1,894
6
Other income
2020
£
Other income
8,922		 Total
2019
£
1,694,847
-
1,694,847
1,694,847
2019
£
111,552
53,063
164,615
140,553
24,062
164,615
2019
£
1,868
2019
£
26,885

THE C3 CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

7 Charitable activities

Staff costs
Audio and visual
Conferences, training and resources
Cost of goods sold
Ministry expenses - telephone
Ministry expenses - travel
Ministry expenses - other
Mission and evangelism
Projects expenditure - vision expenses
Families, children and youth work expenses
Grant funding of activities (see note 8)
Share of support costs (see note 9)
Share of governance costs (see note 9)
Analysis by fund
Unrestricted funds - general
Unrestricted funds - designated
Restricted funds
8
Grants payable
Grants to institutions:
Grants payable in furtherance of the charity's objects		 2020
£
491,060
48,903
59,485
850
1,433
958
3,193
122,625
8,334
16,397
753,238
54,131
932,557
11,654
1,751,580
1,189,103
520,059
42,418
1,751,580
2020
£
54,131		 2019
£
410,867
34,690
104,600
5,616
1,495
3,998
4,056
139,030
56,538
19,221
780,111
58,132
887,591
28,777
1,754,611
1,181,412
484,367
88,832
1,754,611
2019
£
58,132

THE C3 CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

9 Support costs

Support
costs
Governance
costs
£
£
Staff costs
307,032
-
Depreciation
379,733
-
Interest payable and bank charges
84,814
-
Office expenses
33,303
-
Sundry expenses
2,036
-
Insurance
17,409
-
Light and heat
27,228
-
Maintenance
60,312
-
Marketing
13,122
-
Minibus expenses
7,568
-
Audit fees
-
5,492
Accountancy
-
2,844
Legal and professional
-
3,318
932,557
11,654
Analysed between
Charitable activities
932,557
11,654		 2020
£
307,032
379,733
84,814
33,303
2,036
17,409
27,228
60,312
13,122
7,568
5,492
2,844
3,318
944,211
944,211		 2019
£
280,364
354,491
84,076
25,839
1,853
18,133
30,454
70,916
18,645
2,820
5,323
18,548
4,906
916,368
916,368

Governance costs includes payments to the auditors of £ 5,492 (2019- £ 5,323 ) for audit fees.

10 Trustees and key management personnel remuneration and expenses

Mr S Campbell, a trustee, received £ 53,500 (201 9 - £ 60,500 ) in respect of ministry salary during the period and was reimbursed expenses of £ 1,851 (201 9 - £ 3,685 ). The reduction in salary follows a review of senior pastors' salaries which are now split equally between Mr S and Mrs A Campbell.

Four members of the family of one trustee, Mr S Campbell, were also employed by the charity. Their total remuneration was £139,960 (2019: six members of two families - £134,711)

The charity considers its key management personnel to be the eight (2019 - three) members of the leadership team. The total amount of remuneration received by key management personnel (excluding pension) was £285,110 (2019 - £143,194).

THE C3 CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

11 Employees

The average monthly number of employees during the year was:

Leadership team
Ministry
Administration
Children and youth
Other
Total
The full time equivalent number of employees during the year was:
Leadership team
Ministry
Administration
Children and youth
Other
Total
Employment costs
Wages and salaries
Social security costs
Other pension costs
The number of employees whose annual remuneration was £60,000 or
more were:
£60,000 - £70,000		 2020
Number
8
2
16
4
1
31
2020
Number
7
1
11
3
1
23
2020
£
704,418
57,081
36,593
798,092
2020
Number
-		 2019
Number
3
6
15
4
2
30
2019
Number
2
5
10
3
1
21
2019
£
600,084
48,160
42,987
691,231
2019
Number
1

THE C3 CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

12 Tangible fixed assets

Cost
At 1 January 2020
Additions
Disposals
At 31 December 2020
Depreciation and impairment
At 1 January 2020
Depreciation charged in the year
Eliminated in respect of disposals
At 31 December 2020
Carrying amount
At 31 December 2020
At 31 December 2019		 Freehold
land and
buildings
Plant and
equipment
£
£
6,805,263
875,015
-
168,891
(7,428)
(145,253)
6,797,835
898,653
1,177,739
490,026
213,311
158,627
(7,428)
(144,936)
1,383,622
503,717
5,414,213
394,936
5,627,524
384,989		 Motor
vehicles
£
38,637
25,140
-
63,777
20,953
7,795
-
28,748
35,029
17,684		 Total
£
7,718,915
194,031
(152,681)
7,760,265
1,688,718
379,733
(152,364)
1,916,087
5,844,178
6,030,197

13 Fixed asset investments

Unlisted
investments
£
Cost or valuation
At 1 January 2020 & 31 December 2020 100
Carrying amount
At 31 December 2020 100
At 31 December 2019 100

THE C3 CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

14
Financial instruments
Carrying amount of financial assets
Debt instruments measured at amortised cost
Equity instruments measured at cost less impairment
Carrying amount of financial liabilities
Measured at amortised cost
15
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
16
Loans and overdrafts
Bank loans
Payable within one year
Payable after one year		 2020
£
38,274
100
1,984,765
2020
£
13,135
25,139
28,835
67,109
2020
£
1,910,313
135,618
1,774,695		 2019
£
32,476
100
2,104,817
2019
£
5,005
27,471
33,210
65,686
2019
£
2,027,912
135,645
1,892,267

The long-term loans are secured by fixed charges over the assets of the charity. One trustee and some other members of the church had provided certain personal guarantees to the lender but these were released during the year.

17 Creditors: amounts falling due within one year

Notes
Bank loans
16
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 2020
£
135,618
17,294
37,818
150
36,484
227,364		 2019
£
135,645
11,819
55,630
-
21,275
224,369

THE C3 CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

18 Creditors: amounts falling due after more than one year
2020 2019
Notes £ £
Bank loans 16 1,774,695 1,892,267

THE C3 CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

19 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:

Balance at
1 January 2019

£
Look Cambridge asset fund
1,354
Look Cambridge fund
32,645
Amey Community fund grant
5,403
Cambridge City Council grant
18,923
Mission gifts
778
Love Your Neighbour
-
WBCHub
-
59,103		 Movement in funds
Incoming
resources
Resources
expended
£
£
-
(346)
9,572
(32,215)
-
(3,857)
-
(7,996)
45,494
(44,418)
-
-
-
-
55,066
(88,832)		 Movement in funds
Transfers
Balance at
1 January 2020
Incoming
resources
Resources
expended
Balance at
31 December
2020
£
£
£
£
£
-
1,008
-
(346)
662
-
10,002
-
(6,838)
3,164
-
1,546
-
(75)
1,471
-
10,927
-
(527)
10,400
5,217
7,071
16,934
(21,555)
2,450
-
-
95,537
(13,077)
82,460
-
-
4,746
-
4,746
5,217
30,554
117,217
(42,418)
105,353

THE C3 CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

19 Restricted funds

(Continued)

The Look Cambridge fund represents monies to support community and social action projects.

The Amey Community and Cambridge City Council grants have been expended on community facilities at the C3 centre, but remain restricted due to an ongoing requirement to use the facilities for community purposes for a period of 5 and 11 years respectively.

The special offerings fund represents offerings taken for a specific purpose or charity. The transfer relates to funds spent on fixed assets, and have been transferred to designated funds.

The mission gifts fund represents donations received for specific missionary beneficiaries overseas.

The Love Your Neighbour fund r epresents a grant received from Church Revitalisation Trust to respond to the needs of the most vulnerable and marginalised people affected by the COVID-19 crisis.

The WBCHub fund represents donations pledged specifically to the operation of our community hub based in Waterbeach, Cambridge in partnership with St John's the Evangelist Church.

THE C3 CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

20 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Balance at
1 January 2019
£
Vision fund
35,391
Barnabas fund
51,870
Fixed assets: special offerings
2,409
Fixed assets: property fund
3,647,922
Fixed assets: other assets
255,782
3,993,374		 Movement in funds
Incoming
resources
Resources
expended
Transfers
Balance at
1 January 2020
£
£
£
£
582,873
(101,096)
(456,338)
60,830
-
(50,812)
35,970
37,028
-
(2,398)
-
11
-
(219,725)
171,415
3,599,612
-
(110,336)
243,736
389,182
582,873
(484,367)
(5,217)
4,086,663		 Movement in funds
Incoming
resources
Resources
expended
Transfers
Balance at
31 December
2020
£
£
£
£
404,377
(115,523)
(327,519)
22,165
-
(48,275)
38,731
27,484
-
(11)
-
-
-
(219,725)
112,142
3,492,029
-
(136,525)
176,646
429,303
404,377
(520,059)
-
3,970,981

The Barnabas designated fund represents funds transferred from the vision fund to provide encouragement and hope to causes at the discretion of the charity's leadership team.

The fixed asset funds represent assets funded from special offerings, the net book value of the property and those other assets not funded from restricted income, less the associated borrowings.

THE C3 CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

21 Analysis of net assets between funds
Unrestricted Designated Restricted Total
funds funds funds
£ £ £ £
Fund balances at 31 December 2020 are
represented by:
Tangible assets - 5,831,645 12,533 5,844,178
Investments 100 - - 100
Current assets/(liabilities) 452,574 (85,969) 92,820 459,425
Long term liabilities - (1,774,695) - (1,774,695)
452,674 3,970,981 105,353 4,529,008

22 Operating lease commitments

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

Within one year
Between two and five years		 2020
£
1,645
411
2,056		 2019
£
1,645
2,056
3,701

23 Related party transactions

Other than those transactions disclosed in note 10 of these financial statements, t here were no disclosable related party transactions during the year (2019- none) .

24
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Gain on disposal of intangible assets
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase)/decrease in debtors
Increase in creditors
Cash generated from operations		 2020
£
53,959
(1,894)
-
379,733
(1,423)
3,022
433,397		 2019
£
133,604
(1,868)
(850)
355,341
2,925
24,856
514,008

THE C3 CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

25
Analysis of changes in net (debt)/funds
At 1 January
2020
£
Cash at bank and in hand
495,702
Loans falling due within one year
(135,645)
Loans falling due after more than one year
(1,892,267)
(1,532,210)		 Cash flows At 31 December
2020
£
£
123,978
619,680
27
(135,618)
117,572
(1,774,695)
241,577
(1,290,633)