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2020-12-31-accounts

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

For the year ended 31 December 2020

Company Number: 02138994 Charity Number: 297483

CONTENTS

Trustees, Officers 2
and Advisers
Chair’s Foreword 3
Report of the Trustees 6
Independent 18
Auditor’s Report
Consolidated Statement of 21
Financial Activities
Consolidated Balance Sheet 22
Balance Sheet 23
Consolidated Statement of 24
Cash Flows
Notes to the Financial 25
Statements

TRUSTEES, OFFICERS AND ADVISERS

PATRON Her Majesty the Queen

PRINCIPAL OFFICERS

Rachel Whittington , Executive Director from 01.06.20

PRESIDENT

Chris Biglands , Director of Operations Elizabeth Carnelley, Director of Partnerships Laura Ryder , Interim Head of Finance (Consultant) Sarah Wallace BEM , Director of Programmes and Innovation

The Most Reverend and The Right Honourable Justin Welby

TRUSTEES

Andrew Barnett OBE Chair Sue Chalkley OBE Andrew Dorton to 01.08.2020

Philip Fletcher CBE

ADVISERS

Alison Grieve Robert Hallam

Bankers

National Westminster Bank Plc Millbank Branch, PO Box 2 27-29 Horseferry Road London SW1P 2AZ

John Iles to 09.12.2020

Revd Dr Anderson Jeremiah Ven Catherine Pickford to 01.10.20 Christina Rees CBE

Alec Spencer Paula Nelson to 09.08.2020

Investment Managers - CCLA Investment Management Ltd 80 Cheapside London EC2V 6DZ

FINANCE AND ADMINISTRATION COMMITTEE

Auditors - Mazars LLP 6 Sutton Plaza Sutton Court Road Sutton, Surrey, SM1 4FS

Alison Grieve Chair (Trustee) Nick Thomas Robert Hallam (Trustee) Pierre Claude

Solicitors

REMUNERATION COMMITTEE

Legal advice is provided by: The Legal Office The Archbishops’ Council Church House. Great Smith Street, London SW1P 3AZ

Revd Dr Anderson Jeremiah Chair (Trustee) from Jul 21 Andrew Barnett OBE (Trustee) Alison Grieve (Trustee) Robert Hallam (Trustee)

Anthony Collins Solicitors LLP 134 Edmund Street Birmingham B3 2ES

Registered office: The Foundry 17 Oval Way London SE11 5RR

Registered company number 02138994 Registered Charity number 297483

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ANNUAL REPORT AND ACCOUNTS 2020: CHAIR’S FOREWORD

As the Covid restrictions were about to be relaxed, the Bishop of London wrote to the clergy and lay leaders of the Diocese. Quoting Dr Naomi Lawson Jacobs, a Disability Researcher and Equality Trainer, she reminded us that ‘it is human decisions that create environments where justice or injustice flourishes. Churches are places of power where our choices create justice or injustice’. The Bishop concluded: ‘May our lives together be shaped by love and by justice as we bear witness to Christ in these uncertain times’.

Every person has faced unprecedented impact from the pandemic. There has been great suffering and loss but none more so than among those who were already facing enormous challenges prior to the arrival of Covid-19. When the pandemic hit, I, my fellow trustees and members of the senior management team were determined that our own response should be agile, creative and swift. I am proud that we were able to increase our activity and impact through hard work, new partnerships, creative ‘socially-distant’ responses and – vitally – the continued generosity of so many committed supporters.

Throughout this time, our belief in the power of community to change lives has remained steadfast. Every day in 2020, CUF worked to support the mobilisation of churches and other faith-based organisations active in some of the most challenged communities in England. Together, our priority was to ensure that the material, emotional and spiritual needs of our most marginalised neighbours were met.

A food parcel or a hot meal at a time of crisis – and we helped deliver more than 90,000 - provides more than just sustenance. It offers connection, hope and affirmation that “you are valued”. Support from a volunteer working with a client who has just moved from the street into a home equates to more than just helping to keep a roof over someone’s head. The relationship provides friendship and confidence to both.

We were able to mobilise existing diocesan networks to deliver the Just Finance Covid Cash Course designed to help those struggling financially. And we were able to realise the value of the trusting relationships fostered over many years across the eleven Near Neighbours hubs where co-ordinators work in communities diverse in faith and ethnicity. With significant additional funding from the Ministry for Housing, Communities and Local Government, our partners at the frontline engaged with their local communities offering assistance of different kinds and encouraging take-up of the Covid vaccine. We also launched a major report undertaken in partnership with Theos into the relationship between social action, discipleship and church growth. This, together with the Living Theology Forum curated by our new Bishopin-Residence, Adrian Newman, and the ‘Faith in Society’ report authored by Dame Julia Unwin, fed into our strategic thinking and enabled us to answer a simple question: building on the experience of this and previous years, and the needs of our stakeholders, what does our faith call us to do by 2030?

The faith which inspires us is inclusive and welcomes diverse voices – from across the traditions of the Church and beyond - to contribute and shape our actions serving people and communities of all faiths and none. This has been CUF’s way for over 30 years and our new ten-year vision, developed collaboratively with partners over the last eighteen months for launch in late 2021, is of communities of hope acting together to serve and strengthen society . As a national social action mobiliser of the Church of England, our new purpose commits us to empower people to speak, serve and lead . We are delighted to have had this thinking, and our plans, affirmed by the overwhelming majority of dioceses with whom we have been partnering and, more recently, at a meeting of the Archbishops’ Council presided over by the new Archbishop of York. We will publish our plans later in 2021 with recommendations from a review of governance structures intended to combine high standards with organisational agility, showing how we can be ‘simpler, humbler and bolder’.

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Over the past twelve months there’s been an up-surge in community spirit and local engagement across the whole of England, north, south, east and west. We feel privileged to be playing a part at this unprecedented time. So, I am grateful to all those who work with and support us, in whatever way: our President, the Archbishop of Canterbury, our members and my fellow trustees, our Executive Director, Rachel Whittington, and Bishop-in-Residence, partners, staff, volunteers, funders and other supporters.

Your confidence, and the renewed financial stability which offers us the means to invest in our new strategy, make our on-going work possible as we refashion an organisation fit for 2030. The past year has reminded us of the important place of the Church Urban Fund and our partners in a rich and complex ecology of charities as we move forward. ‘May our lives together be shaped by love and by justice as we witness to Christ in these uncertain times’.

Andrew Barnett OBE Chair of Trustees

Three stories of hope, togetherness and the power of partnerships

In West Yorkshire, International Women’s Day gave the Near Neighbours Coordinator an opportunity to connect women from different groups together on a zoom call to share the Tides of Change poem. This meeting and others have led to long-term partnerships and there is now a great network of groups that can connect to facilitate or initiate. After the event, the Coordinator reflected; “I think women felt heard by each other, I think they felt less alone after the event and importantly validated for their life experiences.”

In Coventry, funding through the Together Network enabled Proof Bakery, a community project that trains and hires refugees, to significantly increase production to provide bread for Coventry food bank, with over 2,000 bread items produced in November and December 2020. Similarly, in Middlesbrough a local organic allotment project provided fresh organic vegetables for food parcels delivered to families.

Samuel attended one of the Just Finance Foundation’s Covid Cash Recovery train-the-trainer sessions so that he could deliver the course in his community. However, through the course he discovered that his own family were also eligible for benefits that they weren’t claiming. After the training session he went on to run the course at his local Christian Centre and highlighted how important it is that the courses are delivered by trusted community leaders.

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OUR IMPACT IN 2020

2020 made it clear that the work of CUF, its subsidiaries and partners is needed more than ever. Some highlights are below:

Together Network

Near Neighbours

Just Finance Foundation

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustee Board presents their Annual Report and Financial Statements of the charity group 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 accounts and comply with the charity’s Memorandum and Articles of Association, the Companies Act 2006, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland.

OVERVIEW

Church Urban Fund (CUF) is a charitable company limited by guarantee and was established by the Church of England in June 1987 as a practical response to unmet need and has been active in local communities for over 30 years. Church Urban Fund’s Memorandum of Association defines its objects and powers and is covered by its articles of association.

Our Vision is to see people and communities all over England flourish and enjoy life in all its fullness.

Our Mission is to work across the political spectrum, with a network of partners in churches, other faith communities and secular organisations engaged with local communities across the country.

We work by building trust, empowering local people to have a go at addressing the areas of greatest need in their communities and speaking out against injustice.

We are committed to working through relational partnerships to bring about long-term, sustainable change. Our aim is to mobilise local people to be the source of the change they want to see and to use the assets already available in their community.

We do this through:

LEGAL STRUCTURE AND BASIS OF CONSOLIDATION

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they can get to know each other better, build relationships of trust and collaborate on initiatives that improve the community they live in.

TRANSACTIONS BETWEEN THE GROUPS

During the year, CUF undertook the following transactions with the Together Network (TN), Near Neighbours (NN) and the Just Finance Foundation (JFF):

In the group accounts these transactions are eliminated on consolidation.

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REVIEW OF 2020 AND PLANS FOR THE FUTURE

2020 was a year like no other. Every person has faced unprecedented impact from the pandemic – but none more so than those who were already facing enormous challenges prior to the arrival of Covid-19. In response, CUF worked throughout the year to support the mobilisation of churches and other faith-based organisations in some of the most challenged communities in England. Together, our priority was to ensure that the material, emotional and spiritual needs of our most marginalised neighbours were met.

Before the pandemic hit, the Together Network was already working in more than 60 towns and cities. Therefore, we were well-placed to act quickly and help churches and faith groups respond. We were able to disperse funds for emergency food support to 7 Together Network joint ventures who, with local partners, reached a total of 93,310 people, including at least 25,000 children. Sadly, this figure reflects the high level of need for emergency food support that has been further worsened by the impact of Covid-19, but also the strength of our regional joint ventures’ local networks and partnerships that have enabled a swift and effective dispersal of the funding to feed those most in need.

We supported the Together Network workers around the country through the pandemic through regular online catch ups (so that they could retain connections with those doing similar things in a completely unknown situation), and began the process of exploring a new future for the Together Network with all of our partners.

Principally this collaborative process has been about:

The pandemic has both highlighted and worsened the struggle of people who are experiencing or are threatened with homelessness. The central goal of our Positive Pathways programme is to “ support 1,400 clients at risk of or experiencing homelessness in Yorkshire to live more sustainable and thriving lives” . As of December 2020, 927 clients have received one-to-one relational support tailored to people’s individual circumstances including support with translation, paperwork, and accompanying clients to community events. This support has been vital for those who have been struggling with homelessness for a long time and for those who have never had to deal with these kinds of issues before the pandemic. Despite the significant disruption to volunteering opportunities throughout the Covid-19 pandemic, 57 clients have been supported into volunteering roles in total. One partner in Bradford has been particularly successful in this, with three people also graduating from being Positive Pathways clients to volunteering for the service itself, and seven people entering paid employment.

In partnership with the Church of England and think-tank Theos, we launched the ground-breaking GRA:CE report in November 2020 to an online audience of over 500 people across the country. The GRA:CE report highlights the special, local relationships that distinguish authentic church life – especially in the most challenged and challenging places. The findings reflect engagement with hundreds of clergy and parishioners over three years – people from every demographic, in both urban and rural settings.

We also launched a Living Theology Forum. Curated by Bishop-in-Residence, Right Reverend Adrian Newman, it is a place for CUF to articulate the ‘Why?’ for all it does - what we believe, who we serve, and how we aim to embody our vision and mission.

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Many of the diverse communities within which we work have been especially hard-hit by the pandemic and a priority had been to help local groups find new ways to build capacity. Near Neighbours has continued to work in close partnership with faith and community leaders and community groups to support them to adjust, continue and grow their important work. Coordinators have focused on supporting local Covid-response work, helping community leaders to respond to issues and uncertainties in their community arising from the pandemic, supporting small groups and organisations to apply for and secure grants, continuing to develop their partnerships and local networks, and running online events and training sessions in response to local needs and opportunities.

In 2020 unemployment rose by nearly half a million and almost 9 million people increased their borrowing. Within a day of the first national lockdown, the Just Finance Foundation launched the Coronavirus Help Hub, a signposting tool for community workers and individuals. Available on the JFF website, the resource pulls together all the latest information and additional resources for people facing financial difficulty or uncertainty as a result of Covid-19. The Hub has easy to understand information but also links to expert websites.

2020 reflected a time of challenge and change for CUF. Material changes to our income profile and leadership team were made, difficult questions needed to be asked and honest reflection was overdue: who do we serve, how do we serve them and – most importantly – why?

We reconfigured our staff team to enable more integrated and efficient working (including the transfer of Near Neighbours employees across to CUF), strengthened our relationships with key stakeholders, including the Church of England, cut costs without impacting our capacity and began investing in growing our unrestricted income.

We also conducted an extensive listening exercise across our key stakeholder groups to consider the role of CUF. This identified that:

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programmes in communities, empowers people to improve their own communities and works relationally through churches to reach the most marginalised.

2021 aims and objectives

From 2021, CUF’s mission is to become a national social action mobiliser - working on behalf of the Church of England through the parish network - to empower people to speak, serve and lead. We believe CUF is well placed to take on this role thanks to our unique convening power, resolute commitment to a holistic mission, relationships with the so-called ‘hard-to-reach’ facilitated via our networks, and an ability to unlock transformational funding on behalf of those we exist to serve. We are looking forward to launching our new strategy towards the end of 2021. The key aims and objectives for the year ahead include:

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FINANCIAL REVIEW

Overview

The charitable activities of CUF continue to be delivered in three ways:

1. Enabling Infrastructure:

The Together Network’s programme of activities is delivered through a network of churches, faithbased organisations and secular groups . It works ecumenically and relationally to ensure that:

2. Accessing Resources through:

The Near Neighbours programme whose aim is to:

The Just Finance Foundation , which aims to create a fairer financial system focused on servicing the whole community, where everyone has access to responsible credit, savings and other essential financial services.

3. Shaping the public sphere through :

Research, evaluation, promotion and dissemination of information to network participants and the wider public, to influence awareness, consideration and response to issues affecting the flourishing of individuals and communities.

Income and Expenditure

Total income for 2020 was £6.17m (2019: £6.47m) reflecting a relatively small decrease in a difficult year.

Unrestricted income received in the year was £1.28m (2019: £1.17m). This is an increase on the previous year.

Restricted income relates to funds for Near Neighbours £0.9m (2019: £1.91m), Just Finance Foundation £0.35m (2019: £0.2m), Together Network £2.88m (2019: £2.1m) and £0.77m to other programmes within CUF including the Windrush grants and Positive Pathways project.

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Expenditure decreased significantly to £5.83m (£7.36m) reflecting the reduction in direct spend on Charitable Activities and Expenditure on raising funds as a result of the reconfiguration of the organisation.

The balance sheet funds for the group shows an improved closing position for the year of unrestricted funds at £0.58m (2019: £0.21m) and restricted funds at £2.58m (2019: £2.61m). The cash position at the end of the year was £3.18m (2019: £2.79m) with net assets of the group being £3.16m (2019: £2.82m) at 31 December 2020.

CUF gratefully acknowledges the many contributions, both small and large, received from individuals, churches and legacies, without which its work would not be possible. The continued support from Archbishops’ Council of £0.2m (2019: £0.2m) is also recognised as an important contribution, as is the funding from various trusts and foundations.

Reserves policy

We aim to maximise the funds we can spend to support our charitable aims. The Trustees annually review our reserves policy and the level of required reserves, due to the highly volatile context in which the charity operates. The Trustees’ aim is to maintain the correct balance between a growth strategy and the desire to achieve a prudent level of reserves. They have considered a target level for unrestricted free reserves of £400k for 2020, based on the scale of CUF’s activities and resource base at that time to provide operational cover to ensure a timely and orderly transition (or winding up) of the organisation, if necessary. Additionally, to provide support for Near Neighbours and the Just Finance Foundation in the event of the winding up of the charity.

Based on this target the year end reserves were well above the level assessed by the trustees. Plans and active monitoring on a monthly basis were instigated from the start of 2020 to address the short fall incurred at the start of the year, to ensure that the charity could meet its liabilities as they fall due. The increase back to sufficient levels was in part due to large and unexpected legacy income received in 2020, this income positions CUF back to a more than satisfactory reserve level for 2021.

Investment Policy and Performance

Our investment policy is to focus on capital security and liquidity and to invest in cash and cash equivalents investments to achieve this. At the year-end £0.843m (2019: £0.54m) was held with CCLA Investment Management Limited's ''The CBF Church of England Deposit Fund". CCLA Investment Management Limited invests in accordance with the Church of England's ethical policies.

DELIVERING PUBLIC BENEFIT

CUF’s primary aim is to tackle social and economic disadvantage and we do this in ways set out in the ‘Review and Plans for the Future’ section of this document. We are also working for the renewal of civil society and encouraging the development of the charitable sector.

We work through Church of England structures, but focus our activity on people and organisations of all faiths and denominations. Beneficiaries are not restricted by faith, gender, ethnic origin, disability, age or sexual orientation.

The Trustees consider the guidance on public benefit each year, issued by the Charity Commission and are confident that CUF aims and objectives, as set out above, fulfil the criteria. The Trustees do not anticipate any future change to this operational approach.

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STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Documents

CUF is both a company limited by guarantee subject to the Companies Act 2006 and a charity registered with the Charity Commission. It is governed by its Memorandum and Articles of Association which were last updated on 19 May 2011. The company registration number is 02138994 and the charity number is 297483. The Directors of the company are known as Trustees.

Governance Structure

The Articles of Association allow for up to twelve Trustees and provide that the Archbishop of Canterbury is President. Four Trustees are nominated jointly by the Archbishops of Canterbury and York; three by the Church Commissioners; two by the Archbishops' Council; one by the Finance Committee of the Archbishops' Council and two are co-opted by the Trustees after consultation with the Archbishops. The current composition of the Trustees and Executive Director are set out on page 2.

The Trustees have established two board sub-committees which support CUF work throughout the year and report fully to the Trustees Board:

The trustees also convened a nominations committee that met as needed from time to time.

We temporarily stood down the following committees while work focused elsewhere:

Membership of each of these Committee is agreed by the Trustees and comprises a mix of Trustees and co-opted members whose function is specific to the sub-committees on which they serve. The membership of each sub-committee is set out on page 2. The main Board meets five times a year to review overall strategy operational and financial performance and ensuring our statutory responsibilities are fulfilled. During 2020 trustees met more regularly to more closely review the unfolding months as a result of the pandemic. Meetings will revert to a more regular pattern in 2021.

Any trustee expenses reclaimed are set out in note 11 to the financial statements.

Trustee Induction and Training

Our objective on appointment of our Trustees is to undertake a comprehensive induction programme which covers the formal governance arrangement and includes our legal structures and obligations, charitable priorities and work. The induction also includes briefings from key staff and meetings with those active in our networks which helps with awareness of grass-roots issues and developments. They are also kept up-to-date with regular briefings on developments in CUF’s operating environment. Further training is carried out on an ongoing basis, making use of the Charity Commission website and other charity publications. Trustees are also invited to attend meetings, conferences and seminars, which give

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them a better understating of their roles and responsibilities.

Management and Organisational Structure

The day-to-day management and the responsibility for the implementation of strategy and planning are delegated to the Executive Director. Formal reporting to the Trustee Board takes place regularly throughout the year. The Executive Director is supported by a team of Principal Officers, set out on page 2. These are collectively the Senior Management Team.

CUF PRINCIPAL RISKS

The trustees have a risk management strategy that ensures they actively review the potential risks and uncertainties that may seriously affect the charity. A central risk register is held to ensure that all areas of the charity are assessed for risks and suitable policies and procedures are put in place to mitigate those risks.

Risks have been categorised as either Governance, Compliance, Financial, Operational or Reputational. The Trustees have adopted an agile mechanism for annually assessing the charities appetite to risk reflecting the circumstances in which it operates. Reports on prioritisation and mitigations are received quarterly. Trustees identified the following strategic risks and uncertainties that may seriously affect the performance, future prospects or reputation of the charity.

RISK TYPE RISK MITIGATION
Governance Clarity of vision New vision, mission and associated strategy clearly
identified and being formally integrated into objectives from
October
Governance complexity Governance review and recommendations to be discussed in
October by each board with agreement of an associated
timeline for implementation
Relationship with
Church of England to
support engagement
across dioceses and
achieve core funding		 The board and senior team at CUF has established stronger
relationships centrally and regionally. A MOU will set out the
nature of our relationship with CofE in the future to confirm
collaboration opportunities and funding support.
We have also established much closer alignment with
central and local church through listening, engagement, and
partnership working.
Financial Uncertainty within the
sector from the impact
of Covid-19		 Analysis and reduction of cost base across the whole
organisation.
New three-year income forecasts with scenario modelling
have been prepared. Additional expenditure controls and
cash flow monitoring are in place to improve insight and
agility.
Close monitoring of any changes to supporter giving
patterns which may impact our unrestricted income
projections.

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Hybrid working arrangements established for employees to
increase safety and agility of team.
Sustainable financial
model		 Revision of reserves policy to ensure we have a sufficient
buffer in place to mitigate unexpected fluctuations in
cashflow.
Programmes require full funding before proceeding to avoid
excess demands on unrestricted income.
Minimise reliance on small number of donors.
Invest in improved processes across the organisation to aid
internal decision making, accountability and maximum
impact from our mission.
A cost recovery model is being implemented from 2022 to
reduce the requirement for unrestricted income to support
restricted grant activity.
Compliance Contract delivery All programmes reassessed to ensure they are resourced
appropriately to meet obligations.
Operational Sufficient ‘policy and
process’ awareness
(including Data and IT
controls)		 Comprehensive review of all policies, revisions of procedures
aligned to new structure and cascade
understanding/training through Boards and senior
management team.
Diversity awareness Awareness programmes undertaken. Future workshops
planned.
Reputational Organisational stretch
of resources -
overreliance on small
team of key staff		 Analysis of workload and prioritisation of tasks.
Review process, setting strategic priorities, assignment of
objectives, alignment across CUF.
An increased focus on health and wellbeing of staff given the
extra demands during the pandemic.
Reputational damage -
from a significant
compliance failure i.e
GDPR, or a serious
Fraud allegation		 Policies and Procedures in place, staff trained and regularly
updated on changes to ensure compliance.
Robust systems in place which helps to identify and mitigate
fraudulent grant applications.
Communications strategy in place which addresses our
response to a major crisis or event.
Other Reduction in the size of
our networks -		 Comprehensive review and strengthening of both networks
– new membershipoffers inplace with significantgrowth

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undermining reach and
offer to
partners/donors.		 opportunities. Risk management associated with partnership
working significantly improved through MOUs and improved
risk register.
Displacement as other
charities emerge		 Structural and strategic review clarifies the specific remit
and unique positioning for CUF

Going Concern

The Trustees have reviewed the charity’s financial position, taking account of the levels of reserves and cash, the annual strategic plan as well as its financial and risk management systems. Despite the impact of Covid-19 to date and wider economic uncertainty, as a result of their review, the Trustees believe that the charity can realistically expect to manage operational and financial risks successfully. The Trustees are encouraged in this view by the evidence of continued demand for CUF’s services and interest in the work of the charity. The Trustees and Senior management have taken a number of measures to address and mitigate the impact of the pandemic such as a detailed budget and cashflow forecast, expenditure controls and the close monitoring of cashflow. Accordingly, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the annual Financial Statements.

Key Management Personnel Remuneration

The Trustees consider the Board of Trustees, and the Directors (listed in note 10) as comprising the key management personnel of the charity in charge of directing and controlling the charity and running and operating the charity on a day-to-day basis. The Trustees give of their time freely and were not remunerated in the year. Details of Trustees and related party transactions are disclosed in note 22 to the accounts.

The senior staff salaries are reviewed annually and normally increased in accordance with inflation. In view of the nature of the charity, the Directors benchmark against pay awards in similar charitable organisations. All staff are paid above the National Living Wage.

THE TRUSTEES’ RESPONSIBILITY STATEMENTS FOR PREPARING ANNUAL FINANCIAL STATEMENTS

The Charity’s Trustees are responsible for preparing a Trustees’ Annual Report and Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustees to prepare annual financial statements for each financial year that give a true and fair view of the Charity’s financial activities during the year, its surplus or deficit for the year and its financial position at the end of that year. In preparing annual financial statements, the Trustees have followed best practice and:

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• Prepared the annual financial statements on the going concern basis.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the Charity’s assets and for taking reasonable steps to detect and prevent fraud and other irregularities. The Trustees have overall responsibility for ensuring that the Charity has appropriate systems of control, financial and otherwise.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Each of the Trustees at the date of approval of this Trustees’ report confirms that:

Small Company exemption

The company have taken advantage of the small companies’ exemption as annual income and total gross assets is below the threshold. The accounts have been prepared in accordance with the special provision contained in the Companies Act.

The entity’s Financial Statements comply with FRS102.

Auditors

The Trustees reappointed Mazars LLP as auditors at the Board Meeting on 7[th] September 2021

Approved by the Trustees on 7[th] September 2021 and signed on their behalf by:

___ ____ Andrew Barnett - Chair of Trustees

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF CHURCH URBAN FUND

Opinion

We have audited the financial statements of Church Urban Fund (the ‘charity’) for the year ended 31 December 2020 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the Consolidated Statement of Cash Flows and 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 FRS 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 or the group’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. 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.

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In connection with our audit of the financial statements, 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 the audit:

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charity and the group 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:

Responsibilities of Trustees

As explained more fully in the trustees’ responsibilities statement set out on page 16, the trustees (who are also the directors of the charitable company for the purposes 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 and group’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 charity 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

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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 the financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Based on our understanding of the charity and group and its activities, we identified that the principal risks of non-compliance with laws and regulations related to the Charities Act 2011, UK tax legislation, pensions legislation, employment regulation and health and safety regulation, anti-bribery, corruption and fraud, money laundering, non-compliance with implementation of government support schemes relating to Covid-19, and we considered the extent to which noncompliance 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 and the Charities Statement of Recommended Practice.

We evaluated the trustees’ and 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 posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to use of restricted funds, and significant one-off or unusual transactions.

Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:

Our audit procedures in relation to fraud included but were not limited to:

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

20

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of the audit report

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

Signed:

Stephen Mills

Stephen Mills (Oct 30, 2021 10:42 GMT+1)

Stephen Mills

(Senior Statutory Auditor)

for and on behalf of Mazars LLP

Chartered Accountants and Statutory Auditor

6 Sutton Plaza, Sutton Court Road, Sutton, Surrey, SM1 4FS Date: 30-Oct-2021

21

CHURCH URBAN FUND

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

for the year ended 31st December 2020

----- Start of picture text -----
Unrestricted Restricted Total Unrestricted Restricted Total
Funds Funds 2020 Funds Funds 2019
2020 2020 2019 2019
Note £'000 £'000 £'000 £'000 £'000 £'000
INCOME & EXPENDITURE
Income
Donations & Legacies 4, 5 992 72 1,064 759 69 828
Trusts Income 4, 6 59 567 626 86 752 838
Statutory Income 4, 7 18 503 521 110 500 610
Income from Charitable Activities
Near Neighbours Programme 2 - 850 850 - 1,905 1,905
Together Network 3 - 2,878 2,878 - 2,073 2,073
Just Finance Foundation 4 - 20 20 - - -
Other Income 8 203 - 203 203 1 204
Investment income 3 - 3 9 - 9
Total Income 1,275 4,890 6,165 1,167 5,300 6,467
Expenditure
Expenditure on Raising funds 9 376 35 411 824 - 824
Expenditure on Charitable activities 10
Enabling Infrastructure
Together Network 9a - 2,498 2,498 - 2,281 2,281
Network Development 9b 381 79 460 629 307 936
Accessing Resources
Just Finance Foundation 9c 308 308 293 293
WCCM/Windrush 9d 17 509 526 61 622 683
Near Neighbours
Building Networks 9e 539 539 599 599
Creating Engagement 9f - 253 253 - 823 823
Building Capacity 9g - 209 209 - 522 522
Shaping the public sphere 9h 140 31 171 358 40 398
538 4,426 4,964 1,048 5,487 6,535
Disaggregation of Together Network subsidiarie 3a - 452 452 - - -
Total Expenditure 914 4,913 5,827 1,872 5,487 7,359
Net income/(expenditure) 361 (23) 338 (705) (187) (892)
Transfers between funds 8 (8) - (222) 222 -
Balance brought forward at 1 January 214 2,606 2,820 1,141 2,571 3,712
Balances carried forward 31 December 583 2,575 3,158 214 2,606 2,820
----- End of picture text -----

The charity has no recognised gains or losses other than the net movement in funds for the year shown above. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. All items relate to continuing operations with the exception of three of the subsidiaries. Together for Change Coventry and Warwickshire, Together Leicester and Transforming Communities Together, disaggregated from the group in Dec 20.

The notes on page 26 to page 33 form part of these financial statements

22

CHURCH URBAN FUND

CONSOLIDATED BALANCE SHEET

AS AT 31 DECEMBER 2020

----- Start of picture text -----
Company Number: 02138994
2020 2019
Note £'000 £'000 £'000 £'000
CURRENT ASSETS
Cash held on deposit 13 843 540
Bank 2,338 2,246
Debtors 14 432 725
3,613 3,511
CURRENT LIABILITIES
Amounts falling due within one year: 15
Grants awarded but not yet due for payment
CUF 113 89
NN 74 9
Other creditors 268 593
455 691
NET CURRENT ASSETS 3,158 2,820
NET ASSETS 3,158 2,820
FUNDS
Restricted 17
Church Urban Fund (CUF) 323 452
Together Network (TN) 1,984 1,827
Just Finance Foundation (JFF) 172 130
Near Neighbours (NN) 96 197
2,575 2,606
Unrestricted 583 214
TOTAL FUNDS 21 3,158 2,820
----- End of picture text -----

The charity has taken advantage of the small companies exemption as annual income is less than £10.2m and gross assets are less than £5.1m therefore below the threshold. The accounts have been prepared in accordance with the special provisions contained in the Companies Act 2006.

Approved by the Trustees on 7th September 2021 and signed on their behalf by:

Andrew Barnett: ……..…………………............ Alison Grieve: ……..…………………………… Alison E GrieveAlison E Grieve (Oct 28, 2021 11:49 GMT+1)

The notes on page 26 to page 33 form part of these financial statements

23

CHURCH URBAN FUND

CHARITY BALANCE SHEET

AS AT 31 DECEMBER 2020

----- Start of picture text -----
Company Number: 02138994
2020 2019
Note £'000 £'000 £'000 £'000
CURRENT ASSETS
Cash held on deposit 13 843 540
Cash at bank 123 281
Debtors 14 384 516
1,350 1,337
CURRENT LIABILITIES
Amounts falling due within one year: 15 444 671
NET ASSETS 906 666
FUNDS
Restricted 17 323 452
Unrestricted 583 214
TOTAL FUNDS 906 666
----- End of picture text -----

Approved by the Trustees on 7th September 2021 and signed on their behalf by:

Alison E Grieve (Oct 28, 2021 11:49 GMT+1) Andrew Barnett:………………………………..Alison Grieve:……………………………………………….. Alison E Grieve

The notes on page 26 to page 33 form part of these financial statements

24

CHURCH URBAN FUND

CONSOLIDATED STATEMENT OF CASH FLOWS for the year ended 31 December 2020

----- Start of picture text -----
2020 2019
£'000 £'000 £'000 £'000
Reconciliation of net movement in funds to net cash flow
from operating activities
Net income/(expenditure) for the reporting period (as per 338 (892)
statement of financial activities)
Adjustments for:
Decrease in debtors 293 99
(Decrease)/Increase in creditors (236) 9
57 108
Net cash provided by/(used in) operating activities 395 (784)
Change in cash and cash equivalents in the reporting period 395 (784)
Cash and cash equivalents at the start of the reporting period 2,786 3,570
3,181 2,786
Cash held on deposit 843 540
Bank 2,338 2,246
Cash and cash equivalents at the end of the reporting period 3,181 2,786
----- End of picture text -----

The notes on page 26 to page 33 form part of these financial statements

25

CHURCH URBAN FUND

Notes to the Financial Statements for the year ended 31 December 2020

1 ACCOUNTING POLICIES

a. Basis of preparation

The financial statements have been prepared under the historical cost convention and in accordance with the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities", 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, Charities SORP and the Companies Act 2006.

The consolidated financial statements of the Group incorporate the financial statements of the Charity Church Urban Fund and its subsidiaries, Near Neighbours, the Together Network and Just Finance Foundation.

No separate Statement of Financial Activities is presented for the Charity, as permitted by the Companies Act 2006. Net movement in funds for the Charity alone for the year was a surplus of £240k (2019: deficit £1,379k).

The Trustees have reviewed the charity's financial position, taking into account the levels of reserves, cash position and strategic plan as well as its financial and risk management systems. Despite the impact of the coronavirus on the organisation and wider economic uncertainties, the Trustees believe that the charity can realistically expect to manage operational and financial risks successfully. The Trustees are encouraged by the evidence of continued demand for CUF's services and interest in the work of the charity and have taken a number of measures to address and mitigate the impact of the pandemic such as detailed budget, cashflow forecast, expenditure controls and the close monitoring of cashflow. Accordingly, trustees have reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. They therefore continue to adopt the going concern basis of accounting in preparing the annual Financial Statements.

b. Income recognition

All income is recognised in the SOFA when the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. The following specific policies apply to the categories of income:

Donations include tax recoverable where applicable, and are recognised when receivable and also when the charity has been notified in writing of both the amount and settlement date.

Legacies are recognised on a case by case basis following the granting of probate when the administrator or executor for the estate has communicated in writing both the amount and settlement date.

Grants receivable and Trust Income are accounted for in the year to which they relate.

c. Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that category. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings.

Grants payable are payments made to third parties in the furtherance of the charity's objectives. Grants are charged to the Statement of Financial Activities when they are awarded.

Grants to Near Neighbours Delivery Partners are charged to the Statement of Financial Activities when the funds have been transferred to the recipient's account.

26

d. Support costs

The support costs for grants include the costs of assessing, reporting on, facilitating the use of and paying grants.

Support costs relating to charitable activities have been apportioned based on the staff time spent on each activity and analysed in note 12.

f. Cost of raising funds

The cost of fundraising comprises costs incurred in encouraging churches, individuals, and trusts to contribute to its activities.

g. Charitable activities

Costs of charitable activities includes grants made and apportionment of support costs as shown in note 12.

h. Investment returns

Investment income is accounted for when receivable.

i. Pensions costs

The charity operates a defined pension scheme, Church Urban Fund Pension Plan with Legal and General for all employees. The contributions to the defined contribution schemes are accounted for in the year to which they relate. Costs of the contributions to the scheme is accounted for in the year to which they relate

The charity has no liability beyond making its contributions and paying across the deductions for the employee's contributions.

j. Fund structure

Unrestricted funds represents funds received that are available for use at the discretion of the trustees for any purpose in furtherance of the objectives of the charity.

Restricted funds represents funds received that are subject to specific restrictive conditions imposed by donors (see note 17 for more details of restricted funds).

k. Operating lease

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

l. Tangible fixed assets and policy on capitalisation

Capital additions which do not exceed £10,000 are expensed in full in the year of purchase.

There were no tangible fixed assets in 2020 or 2019.

27

2. RESULTS OF SUBSIDIARY - NEAR NEIGHBOURS

Near Neighbours a charitable company limited by guarantee that builds associations and relationships across faith and ethnic divisions and creates a context where people can come together to develop common values and address community issues. The Board of Trustees is appointed by Church Urban Fund and the Archbishops' Council.

The company registration number 7603317 and charity number 1142426.

Near Neighbours receives funding from the Ministry of Housing, Communities and Local Government (MHCLG) and from the Church Urban Fund.

Income
Income from Charitable Activities - MHCLG via Church Urban Fund
Income from Charitable Activities - Other
Expenditure
Charitable activities
Building Networks
Creating Engagement
Building Capacity:
Faith Leaders
Young Leaders
Real People Honest Talk
Places of Welcome
Total expenditure
Net income/(expenditure)
Balance brought forward at 1 January
Balance carried forward at 31 December		 2020
2019
£'000
£'000
850
1,905
50
50
900
1,955
539
599
253
824
25
129
81
127
90
266
13
-
1,001
1,945
(101)
10
197
187
96
197

3a. RESULTS OF SUBSIDARIES - TOGETHER NETWORK

The Together Network comprises of 20 small subsidiaries which are consolidated in the CUF group accounts at the year end. A summary of the 20 subsidiaries are shown below:

Thrive Together Birmingham
Transformation Cornwall
Transforming Notts Together
Together Southwark
Together Lancashire
Together Newcastle
Together Liverpool
Transforming Lives Together
Communities Together Durham
Together Middlesbrough and Cleveland
Together Canterbury
Capital Mass
Transforming Plymouth Together
Together Norfolk
Greater Together Manchester
Together in Sussex
Wellsprings Together
Total		 Church
Urban
Fund
Income
Other External
Income
Total Income
Total
Expenditure
Balance b/f 01/01/20
Net Assets
31/12/2020
£'000
£'000
£'000
£'000
£'000
£'000
12
499
511
501
293
303
4
27
31
49
48
30
4
127
131
76
54
109
4
15
19
6
31
44
4
65
69
106
40
3
4
63
67
32
29
64
9
117
126
56
38
108
11
17
28
54
26
-
2
99
101
102
82
81
35
302
337
276
124
185
5
127
132
38
31
125
2
62
64
85
63
42
21
163
184
82
122
224
6
85
91
54
46
83
11
321
332
302
219
249
10
4
14
34
53
33
64
117
181
158
278
301
208
2,210
2,418
2,011
1,577
1,984

In Dec 2020, three of the subsidiaries; Together for Change Coventry and Warwickshire, Together Leicester and Transforming Communities Together, disaggregated from the group. The balances below reflect the figures up to the point of disaggregation.

Together for Change Coventry and Warwickshire
Together Leicester
Transforming Communities Together
Total
Total of all subsidiaries		 Church
Urban
Fund
Income
Other External
Income
Total Income
Total
Expenditure
Balance b/f 01/01/20
Net Assets At
Disaggregation
£'000
£'000
£'000
£'000
£'000
£'000

9
407
416
275
45
186
10
76
86
12
34
108
2
185
187
200
171
158
21
668
689
487
250
452
229
2,878
3,107
2,498
1,827

3b. SUMMARY OF THE TOGETHER NETWORK

A summary of the 20 subsidiaries that form part of Together Network are shown below. The Trustees for each subsidiary are appointed by CUF and one other organisation, with CUF having control by the virtue of the majority of trustees being appointed:

Company Charity
Together Network Reg. No. **Reg. No. ** Trustees appointed by CUF and:
Thrive Together Birmingham 8039675 1153942 Bishop of Birmingham
Transformation Cornwall 7329249 1138706 Bishop of Truro & Cornwall Methodist District
Transforming Notts Together 8399842 1152870 Southwell & Nottingham Diocesan Board of Finance
Together Southwark 8257445 1153362 South London Church Fund & Southwark Diocesan
Board of Finance
Together Lancashire 7966145 1147848 Bishop of Blackburn & Lancashire Methodist District
Together Newcastle 8139375 1150824 Newcastle Diocesan Board of Finance
Together Liverpool 8190148 1151977 Liverpool Diocesan Board of Finance
Transforming Lives Together 8419285 1157348 Chester Diocesan Board of Finance

28

Communities Together Durham 8860961 1157214 Durham Diocese Board of Finance
Together Middlesbrough and 9196281 1159355 York Diocesan Board of Finance
Cleveland
Capital Mass 9257264 1159501 London Diocesan Board of Finance
Together for Change Coventry 8763866 1160133 Coventry Diocesan Board of Finance
and Warwickshire
Transforming Communities 9010580 1157772 Mercian Community Trust on behalf of Diocese of Lichfield
Together
Together Canterbury 8763875 1159936 Canterbury Diocesan Board of Finance
Transforming Plymouth Together 9716832 1166026 Exeter Diocesan Board of Finance
Greater Together Manchester 9490223 1167704 Manchester Diocesan Board of Finance
Together Norfolk 9725781 1166382 Norwich Diocesan Board of Finance
Together in Sussex 10375699 1171719 Chichester Diocesan Board of Finance
Together Leicester 10929716 1175357 Leicester Diocesan Board of Finance
Wellsprings Together 11423641 1179481 Leeds Diocesan Board of Finance

4. RESULTS OF SUBSIDARIES - JUST FINANCE FOUNDATION

Income
Income from Individuals and Legacies
Income from Trusts
Income from Job Retention Scheme
Income from Charitable Activities:
Money and Pensions Service
Nationwide Building Society
Church Urban Fund grant
Expenditure
Charitable activities
Financial Capacity
LifeSavers
Covid Cash Recovery
Milo's Money
Cash Smart Credit Savvy
Local Communities
Just Finance Local
Information HUB Development
Total expenditure
Net (expenditure)/income
Balance brought forward at 1 January
Balance carried forward at 31 December
5. INCOME FROM DONATIONS AND LEGACIES - CUF
Donations: Individual, Church and Community Donations
Legacies
6. INCOME FROM TRUSTS - CUF
Trusts Income
7. STATUTORY INCOME - CUF
Public Funds
8. INCOME FROM OTHER ACTIVITIES - CUF
Archbishops' Council
Other Income		 2020
2020
£'000
£'000
Unrestricted
Restricted
590
6
402
-
992
6
2020
2020
£'000
£'000
Unrestricted
Restricted
59
261
59
261
2020
2020
£'000
£'000
Unrestricted
Restricted
18
500
18
500
2020
2020
£'000
£'000
Unrestricted
Restricted
203
-
-
-		 2020
2019
£'000
£'000
66
67
256
148
3
-
5
-
15
-
345
215
5
62
350
277
2020
2019
£'000
£'000
105
196
140
-
35
-
-
27
28
68
-
2
308
293
42
(16)
130
146
172
130

2020
2019

£'000
£'000

Total
Total

596
668
402
93

998
761

2020
2019

£'000
£'000

Total
Total

320
640

320
640

2020
2019

£'000
£'000

Total
Total

518
610

518
610

2020
2019

£'000
£'000

Total
Total
203
203
-
1
203
204
203
-

29

9. EXPENDITURE
Expenditure on Raising Funds
Expenditure on Charitable Activities
Enabling Infrastructure
Together Network (9a)
Network Development (9b)
Accessing Resources
Just Finance Foundation (9c)
Windrush/Christian Meditation Grants (9d)
Near Neighbours Programme
Building Networks (9e)
Creating Engagement (9f)
Building Capacity (9g)
Shaping the Public Sphere (9h)
Total charitable activities
Disaggregation of Together Network Subsidiarie
Total expenditure
9a. ENABLING INFRASTRUCTURE: TOGETH
Programme Costs
Staff costs
Support costs
9b. ENABLING INFRASTRUCTURE: NETWO
Development Programmes
Capacity Building through resources & events
Staff costs
Support costs
9c. ENABLING INFRASTRUCTURE: JUST FI
Programme costs
Staff costs
Support costs
9d. ACCESSING RESOURCES: WINDRUSH/
Grants awarded to projects during the year (see
Less writebacks of awards
Net grant awards
Staff costs
Support costs
Writebacks of awards represent grants awarded
ACCESSING RESOURCES: NEAR NEIGHBO
9e. BUILDING NETWORKS
Funding Delivery Partners
Thrive Together Birmingham
St Philip's Centre, Leicester
Transforming Notts Together, Nottingham
Centre for Theology and Community, East
Wellsprings Together, Bradford, Leeds & D
King's Centre, West London
Transforming Communities Together, Blac
Greater Together Manchester, Rochdale &
Together Lancashire, Burnley, Hyndburn, R
Grassroots, Luton
Peterborough
Staff costs
Other direct costs
Support costs
9f. CREATING ENGAGEMENT
Grants awarded to projects during the year (see
Less writebacks of awards
Net grant awards
Staff costs
Other direct Costs
On consolidation grants totalling £229k (2019: £7		 Staff
costs
Programme
costs
Other direct costs
Support costs
£'000
£'000
£'000
£'000
(note 10)
(note 9a-h)
(note 12)
212
-
96
103
1,360
838
-
300
224
74
54
108
194
93
7
14
17
509
-
-
107
414
3
15
56
187
2
8
134
53
4
18
78
-
56
37
2,170
2,168
126
500
s
-
452
-
-
2,382
2,620
222
603
ER NETWORK
RK DEVELOPMENT
NANCE FOUNDATION
CHRISTIAN MEDITATION GRANTS
note 19a for details)
in previous years that have been unclaimed.
URS PROGRAMME
London
ewsbury
k Country
Bury
ossendale, Blackburn, Pendle
note 20a for details)
03k) awarded to each of the subsidiaries under the Together Network were elim
2020
2019

£'000
£'000
411
824
2,498
2,281
460
936
308
293
526
683
539
599
253
823
209
522
171
398
4,964
6,535
452
-
5,827
7,359
2020
2019
£'000
£'000
838
770
1,360
1,257
300
254
2,498
2,281
2020
2019
£'000
£'000
4
20
70
47
74
67
224
492
162
377
460
936
2020
2019
£'000
£'000
93
116
194
112
21
65
308
293
2020
2019
£'000
£'000
511
638
(2)
(16)
509
622
17
24
-
37
526
683
2020
2019
£'000
£'000
47
49
30
55
11
-
45
51
46
49
42
49
44
45
44
46
16
50
46
49
43
51
414
494
107
85
3
11
15
9
539
599
2020
2019
£'000
£'000
198
761
(11)
(11)
187
750
56
58
10
15
253
823
inated_(note 3)_.

Writebacks of awards represent grants awarded in previous years that have been unclaimed.

30

9g. BUILDING CAPACITY

Funding Delivery Partners
Faith Leaders capacity building
Christian Muslim Forum
Council for Christians and Jews
Hindu Christian Forum
Nisa Nashim
Young Leaders capacity building
Catalyst Programme
Community capacity building
Real People Honest Talk
Leadership for Effective Change
Staff costs
Other direct costs
Support costs
. ACCESSING RESOURCES: SHAPING THE PUBLIC SPHERE
Publications and printing
Web development and digital
Promotion and production
Research and evaluation
Staff costs
Support costs
. STAFF COSTS
Salaries
Social Security
Pensions		 2020
2019
£'000
£'000
8
22
4
17
-
6
4
26
18
35
13
202
6
-
53
308
134
171
4
25
18
18
209
522
2020
2019
£'000
£'000
-
5
4
11
3
18
49
62
56
96
78
212
37
90
171
398
2020
2019
£'000
£'000
2,086
2,445
168
226
128
191
2,382
2,862

9h. ACCESSING RESOURCES: SHAPING THE PUBLIC SPHERE

10. STAFF COSTS

The key management personnel of the charity is comprised of the trustees, the Executive Director, Director of Operations, Director of Partnerships, Director of Programme and Innovation and Head of Finance.

The total redundancy costs during the year across the group was £31k (2019: £23k)

The total employment benefits of the key management personnel of the charity, including employer pension contributions were £412k (2019: £506k).

The number of staff whose emoluments for the year exceeded £60,000 were:

Normal emoluments
(£60,000 - £70,000)
(£70,000 - £80,000)		 2020
2019
2
2
1
1
3
3

11. STAFF NUMBERS

The average monthly headcount for the group was 65 staff (2019: 72) and the average monthly number of full-time equivalent employees (including casual and part-time staff) during the year was:

Direct Charitable
Fundraising
Communications
Management and Administration		 2020
2019
57
50
3
10
1
4
4
8
65
72

None of the other trustees received any other benefits from employment with the charity or its subsidiaries in the year (2019: £nil). Appropriate expenses incurred in attending meetings and on other business of CUF were reimbursed to Trustees as follows:

Travel, subsistence and other expenses No.
£'000
No.
£'000
8
5
7
20
2020
2019

The amount waived by trustees for the year was £nil (2019: £5k).

12. ALLOCATION OF SUPPORT COSTS

The breakdown of support costs and how these were allocated is shown below.

Professional Costs
Audit
Accommodation
Trustees expenses
Other (Recruitment, office costs, travel & subsistence)
13. CASH HELD ON DEPOSIT
Group and Charity
CCLA The CBF Church of England Deposit Fund - current assets
14. DEBTORS
Prepayments and accrued income
Other debtors
Legacies
Donations (vouchers, credit cards)
Other Debtors		 2020
2019
£'000
£'000
10
33
333
307
29
153
60
232
432
725
Group		 Total
Total
2020
2019
£'000
£'000
95
158
46
28
110
131
5
13
347
505
603
835
2020
2019
£'000
£'000
843
540
843
540

2020
2019

£'000
£'000

10
33

333
307

24
109

17
67

384
516
Charity

31

15. CURRENT LIABILITIES

Amounts falling due within one year:
Grants payable CUF_(note 16)
Grants payable NN(note 16)
Taxation & Social Security
Accruals
Other creditors
Intercompany account (Near Neighbours)
Intercompany account (Just Finance Found
16. MONEY FOR LOCAL ACTION
Balance brought forward
Grants awarded (_note 19 & 20)
Writebacks
Less
Grants paid during year
Returned Grants
Balance of grants payable
17. RESTRICTED FUNDS
CUF Programme
Windrush Grant
Christian Meditation Grant (WCCM)
Network Development
Near Neighbours
Near Neighbours - Creating Engagement
Together Network
Just Finance Foundation		 ation)
Windrush and CMT
CUF Programme
2020
2019
£'000
£'000
89
3
511
638
(2)
(16
598
625
486
537
(1)
(1
485
536
113
89
Balance at
Income
2019
£'000
£'000
-
500
81
1
371
266
452
767
197
647
-
253
197
900
1,827
2,878
130
345
2,606
4,890		 2020
2019
2020
2019
£'000
£'000
£'000
£'000
113
89
113
89
74
9
74
9
5
9
3
7
42
62
28
53
221
522
98
253
455
691
316
411
-
-
93
207
-
-
35
53
455
691
444
671
Creating Engagement
NN Programme
Total
Total

2020
2019
2020
2019

£'000
£'000
£'000
£'000

9
4
98
7

198
761
709
1,399
)
(11)
(11)
(13)
(27)
196
754
794
1,379
133
751
619
1,288
)
(11)
(6)
(12)
(7)
122
745
607
1,281
74
9
187
98

Expenditure Disaggregation of
Transfers
Balance at
Subsidiaries
between funds
2020

£'000
£'000
£'000
£'000

500
-
-
-
6
-
(1)
75

148
-
(241)
248

654
-
(242)
323

748
-
-
96

253
-
-
0

1,001
-
-
96

2,498
(452)
229
1,984

308
-
5
172

4,461
(452)
(8)
2,575
Group
Charity

The Windrush Grants support groups to commemorate, celebrate and educate people about the contribution of the Windrush Generation in communities. The Christian Meditation Grants, funded by the World Community for Christian Meditation(WCCM) provides small grant primarily for meditation purposes. The Network Development costs are to support development work across the network.

The Near Neighbours programme costs enables the work of bringing faith based communities together.

The Together Network fund is to support the partnership work between Church Urban Fund and the Church of England dioceses of mobilising the church to respond to issues of poverty locally.

The transfer of £5k represents a grant to the Just Finance Foundation to support staff costs for Covid Cash Programme as agreed by the trustees.

18. OPERATING LEASE

19
19
In		 2020
2019
£'000
£'000
1 year
11
45
2 - 5 years
-
-
a ACCESSING RESOURCES: CHRISTIAN MEDITATION TRUST/WINDRUSH GRANTS
GRANTS AWARDED IN 2020 BY SECTOR
Christian Meditation Trust/Together Grants
Community
Health/Mental Health
Homeless/Housing
Total Grants Awarded before writebacks (see Note 9d)
b. GRANTS AWARDED IN 2020 BY REGION (DIOCESE)
Bath & Wells
Birmingham
Blackburn
Bristol
Chelmsford
Chester
Chichester
Derby
Exeter
Gloucester
Hereford
Leicester
Leeds
Lichfield
Lincoln
Liverpool
London
Manchester
Oxford
Portsmouth
Rochester
St Albans
Salisbury
Land and Building
2020, CUF moved to The Foundry and the new lease agreement requires four months notice to vacate the office space.		 2020
2019

£'000
£'000

1
1
-
2
2020
2019
£'000
£'000
500
515
8
108
3
15
511
638
2020
2019
£'000
£'000
17
17
13
6
4
10
38
8
33
38
-
2
7
10
-
8
18
10
-
15
-
5
19
-
32
53
43
31
16
-
-
22
67
127
30
46
23
25
-
6
12
7
27
7
2
-
Other

32

----- Start of picture text -----
Sheffield 15 -
Southwark 86 88
Southwell & Nottingham 5 20
Winchester - 22
Worcester - 13
York 3 42
Grants covering more than one Diocese 1 -
Total Grants Awarded before writebacks (see Note 9d) 511 638
20a. NEAR NEIGHBOURS PROGRAMME - CREATING ENGAGEMENT IN 2020 BY ACTIVITY
2020 2019
Local Initiatives £'000 £'000
First Encounters: between people of different faith and ethnic communities,
encouraging the development of friendship and neighbourliness 44 414
Everyday Interactions: encouraging families and individuals to come
together regularly 127 230
Social Action: bringing together people from different faith and ethnic
communities to work together to change their neighbourhoods for the better 27 117
Total Grants Awarded before writebacks (see Note 9f) 198 761
20b. NEAR NEIGHBOURS PROGRAMME - CREATING ENGAGEMENT IN 2020 BY REGION
2020 2019
Regional Centre £'000 £'000
Centre for Theology and Community, London 33 128
St Philip's Centre, Leicester 7 55
Thrive Together Birmingham 14 21
Faithful Neighbours, Bradford 25 76
King's Centre, West London 23 98
Transforming Communities Together, Black Country 29 58
Grassroots, Luton 31 104
Greater Manchester 11 101
Lancashire - 85
Transforming Notts Together 11 -
Peterborough 14 35
Total Grants awarded before writebacks (see Note 9f) 198 761
21. NET ANALYSIS OF ASSETS AND LIABILITIES BY FUND
Unrestricted Restricted 2020 2019
£'000 £'000 £'000 £'000
Current assets 640 2,973 3,613 3,511
Current liabilities (57) (398) (455) (691)
583 2,575 3,158 2,820
Church Urban Fund 583 323 906 666
Near Neighbours - 96 96 197
Just Finance Foundation - 172 172 130
Together Network - 1,984 1,984 1,827
583 2,575 3,158 2,820
----- End of picture text -----

20a. NEAR NEIGHBOURS PROGRAMME - CREATING ENGAGEMENT IN 2020 BY ACTIVITY

20b. NEAR NEIGHBOURS PROGRAMME - CREATING ENGAGEMENT IN 2020 BY REGION

21. NET ANALYSIS OF ASSETS AND LIABILITIES BY FUND

22. RELATED PARTIES

The charity's key relationship in the pursuit of its charitable objectives is with the Church of England. During the year Church Urban Fund received a grant from the Archbishops' Council of £203k both this year and last.

During the year CUF undertook the following transactions with its subsidiary Near Neighbours:

Near Neighbours paid CUF a grant of £228k (2019: £823k) to administer the Small Grants programme. Near Neighbours made a contribution of £136k (2019: £150k) to CUF for the administration of the overall programme. At the year end, the intercompany balance was £93k (2019: £207k) owed by CUF.

During the year CUF granted the Just Finance Foundation £5k (2019: £62k) in support of the subsidiary and Just Finance Foundation made a contribution of £10k (2019: nil) to CUF towards the office costs and administration costs of the overall programme. At the end of the year intercompany balance of £35k (2019: £53k) was owed by CUF.

During 2020 CUF paid £229k (2019: £703k) to the subsidiaries under the Together Network. The intercompany balance for the Together Network was nil (2019: nil) owed by CUF. In the group accounts these transactions are eliminated on consolidation.

Listed below are grants made where there is a commonality of trusteeship as between the Church Urban Fund group and the recipient charity.

----- Start of picture text -----
Grant Grant
Name Related party/Recipient entity Trustee of 2020 2019
Alison Grieve Trustee of Capital Mass CUF £2k £35k
Right Reverend Canon Denise Poole Trustee of Wellsprings Together NN £64k £170k
Right Reverend Mark Poulson Trustee of The Kings Centre Southall NN £42k £49k
----- End of picture text -----

There are no other outstanding balances with related parties.

23. Legal Form of the Entity

CUF was established by the Church of England in England 1987, registration number 2138994 and charity number 297483. The charity is located at The Foundry, 17 Oval Way, London, SE11 5RR.

24. Post Balance Sheet Events

15 Joint Ventures disaggregated or dissolved as at September 2021. These are Thrive Together Birmingham, Transformation Cornwall, Transforming Notts Together, Together Southwark, Together Lancashire, Together Newcastle, Together Liverpool, Transforming Lives Together, Communities Together Durham, Together Middlesbrough and Cleveland, Capital Mass, Transforming Plymouth Together, Greater Together Manchester and Together in Sussex.

33