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2021-12-31-accounts

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

For the year ended 31 December 2021

Company Number: 02138994 Charity Number: 297483

CONTENTS

Trustees, Officers
and Advisers		 2
Chair’s Foreword 3
Report of the Trustees 5

TRUSTEES, OFFICERS AND ADVISERS

PATRON

PRINCIPAL OFFICERS

Her late Majesty, Queen Elizabeth II

Rachel Whittington , Group CEO Adam Edwards Group Deputy CEO from 01.04.22

PRESIDENT The Most Reverend and The Right Honourable Justin Welby

Chris Biglands , Director of Operations to 28.02.22 Elizabeth Carnelley, Director of Partnerships Laura Ryder , Interim Head of Finance Sarah Wallace BEM , Director of Programmes and Innovation

TRUSTEES

Andrew Barnett OBE Chair Sue Chalkley OBE Philip Fletcher CBE to 14.12.21 Alison Grieve Robert Hallam Revd Dr Anderson Jeremiah Revd Christina Rees CBE Alec Spencer

ADVISERS

Bankers

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

FINANCE AND ADMINISTRATION COMMITTEE

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

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

REMUNERATION COMMITTEE

Independent 18
Auditor’s Report
Consolidated Statement of
Financial Activities		 22
Consolidated Balance Sheet 23
Balance Sheet 24
Consolidated Statement of 25
Cash Flows
Notes to the Financial 26
Statements

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

Auditors - Mazars LLP

6 Sutton Plaza Sutton Court Road Sutton, Surrey, SM1 4FS

Solicitors

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

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 2021: CHAIR’S FOREWORD

Since we were first established 35 years ago, the Church Urban Fund has continually adapted to the external context to put the changing needs of those we serve first and foremost. This is as it should be. We don’t need to look back to 2021 to be reminded of the impact of the Covid-19 pandemic on every aspect of our lives as professionals and private individuals, as citizens, family members and the role we all play in the communities of which we are each a part. Covid accelerated the many changes that had long been predicted and exposed the poverty and inequality, long since evident, that is now rising. The impact is all around us.

The pandemic showed how we need, and how we can flourish, as human beings when we have access to material resources but also supportive relationships and that sense of belonging that comes from being listened to and respected. Dame Julie Unwin helped put this in an historical context in her report Faith in Society which we commissioned as part of our strategic review. Mirroring the 1985 report of almost the same name, and which led to us being set up, she highlights how faith-based social action has “ played a central role in shaping the network of provision, support and service in England ”.

We know that the Church of England’s parish network means that churches are deeply rooted in every community and this network is one of the country’s greatest assets. In many communities the church building remained where local amenities such as shops, libraries and village halls may have closed. It is through these that we can both listen to and serve communities. And it is acknowledgement of that asset which has given us the confidence to imagine a future, a vision of communities of hope acting together to serve and strengthen society which underpins the Church Urban Fund’s new 10-year vision and 3 year plan that we have agreed following extensive consultation. Our revised mission is to become a national social action mobiliser working on behalf of the Church of England. Through our work we want to empower people of all ages, backgrounds and belief to serve, speak and lead in their communities.

This new vision was showcased in December at Lambeth Palace when we came together to share the work of CUF during the pandemic and to thank all our supporters for their commitment to CUF in recent years. We shared stories from across the networks, readings and music from the Soul Sanctuary Gospel Choir. It was an inspiring and uplifting evening. And work to secure that vision has been ongoing as we continued to be agile, creative and responsive to the needs of communities that have been disproportionately affected by Covid.

Through funding from the Department for Levelling Up, Housing and Communities, our sibling charity Near Neighbours delivered a programme encouraging the take up of the vaccine and delivered health messages and support to vulnerable and diverse communities. Through this work over 4,000 people attended events, 763 community organisations were engaged and £400,000 was distributed in small grants enabling small local organisations to support people with Covid-19 challenges. This work has also enabled partnerships between community groups, local authorities and NHS trusts to be developed and has demonstrated the vital role that grassroots organisations have in reaching the most vulnerable and disadvantaged in society. 2021 was the 10th Anniversary of Near Neighbours, and a highlight of the year was the many anniversary events held across the country by the Near Neighbours hubs. These were wonderful opportunities to celebrate the achievements of Near Neighbours and our partners, to strengthen relationships, and to share programme learning with a wider audience.

We also began to pilot Growing Good, a free six-session course for churches that was developed following a research project led by CUF and Theos. This research identified a series of characteristics shared amongst churches that are growing numerically, flourishing through their engagement in social action and helping people deepen and grow their faith. These include hospitality, generosity, adaptability,

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participation and having a persistent presence. We are already seeing some wonderful stories coming out of churches that have used Growing Good, and how it is helping them think about how churches can be present in their communities moving forward. Our Living Theology Forum, convened by our Bishop-inResidence Rt Revd Adrian Newman, seeks to unpackage our Christian motivation for social action or what we in the Church of England call ‘the common good’. This forum contributes to the debate around faith based social action with articles and discussion from a range of theologian and practitioners from across the spectrum of the Church of England as well as ecumenical content.

The pandemic showed just how vulnerable people who are experiencing homelessness are. Our Positive Pathways project has a mission to provide one-to-one relational support to people at critical points on their path to sustainable living. Despite some challenges related to the pandemic, the project is progressing well and a total of 1,566 clients have been supported at the end of year 4 (against a target of supporting 1,400 clients over five years). The numbers only give part of the picture, it is the stories of people’s lives that have been changed that really matter. Sam, one of the befrienders, worked closely with one person for two years, acting as an 'in-betweener’ giving kindness, being able to share information and be a friendly and familiar face, helping people to have their own place to live and working through things like benefits, finances and immigration statuses so that people can have a positive future. At the end of 2021, we also secured a grant of £750,000 from the Benefact Trust to develop this strand of work further over the next three years with the aim of substantially increasing the number of befriending volunteers we engage across priority areas.

During 2021, we developed and rolled out Milo’s Money, a financial education programme supporting 5 to 7-year-olds learning about money, using innovation funding from the Money and Pensions Service. We engaged 99 schools to join us in the pilot programme and post pilot work, reaching more than 9,900 children. The results from the external evaluation are very encouraging and will help enable us to develop the programme from 2022.

This work couldn’t be achieved without those who work with and support us and I am grateful for the support of these people: our President the Archbishop of Canterbury, our members and my fellow Trustees, our Group Chief Executive Rachel Whittington, and Bishop-in-Residence Adrian Newman, partners, Together Network members, staff, volunteers, donors and funders. Your support and confidence in CUF has enabled us to develop our fresh vision, as we seek to support people and communities to serve, lead and speak, as we negotiate the changes in our society and communities that have been accelerated by the pandemic, and as we seek to enable those without a voice in our communities to find one.

As we look forward, we are looking to expand the reach and scope of our work through the Together Network and are in conversation with a number of partners. The work of Just Finance Foundation will seek to roll out Milo’s Money to a greater number of schools and develop new programmes that assist the financial education of our young people. Through Near Neighbours we will continue to seek to help communities come together, and our young leadership programme, Catalyst, will help young people to play a more active role in their communities. We will also build on the work of our Positive Pathways programme with a new initiative called Wayfinder, helping people who have experienced homelessness have a more sustainable future through befriending and mentoring support. We can see the need for this work all around us, and with our partners and supporters, CUF hopes to make an impact on the lives of those most in need.

Andrew Barnett OBE Chair of Trustees

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OUR IMPACT IN 2021

As the longer term financial and social impact of the Covid-19 pandemic emerged during 2021, CUF and its subsidiaries were well equipped to respond with programmes and support to those most in need. Some highlights of our impact are below:

Together Network

Positive Pathways

Near Neighbours

Just Finance Foundation

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustee Board presents their Annual Report and Financial Statements of the charity group for the year ended 31 December 2021. 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.

After 18 months of consultation, in late 2021 we finalised a refresh of our vision, mission and strategy. At the heart of this process was a national listening and learning exercise to ensure that CUF’s roadmap for the future was co-created by all our stakeholders. This included commissioning Dame Julia Unwin to lead on an inquiry into the future of faith-based social action.

We also sought to identify opportunities for greater integration and focus so that, over time, the members of the CUF group can deliver more impact and value for money through closer alignment. We commissioned a governance review across the CUF group, led by Lucent Consulting, the outcomes of which will be reviewed by CUF, NN and JFF Trustees in 2022 a phased implementation plan will follow. An immediate action, driven by our desire for greater simplicity, was to operate the CUF and NN’s boards coterminously. This has increased the awareness of each charity’s work across the Trustee group and lessened the reporting impact on the executive team.

During 2021, we completed our process of disaggregation whereby CUF became a minority member (rather than a controlling member) of several of our Together Network partner organisations, and resigned as a member from four. This has reshaped our relationship to one of mutuality and creative support, partnership and collaboration, and has offered the opportunity to expand the Together Network beyond the original members. Closing the year, in addition to the 15 Core members with whom CUF has a

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legal relationship, we had 8 “associate members” join us in an informal relationship of support and resourcing and we expect this number to grow in the future.

Given the nature of the CUF family and who we exist to serve, our strategy process was never going to be linear or straight forward. However, it was extremely fruitful. We are confident that our refreshed strategy builds on CUF’s heritage, the great needs of communities across England and the opportunities which CUF has to help meet these through our unique convening power, tangible offering to partners, our commitment to delivering a holistic and theologically-rooted mission, and CUF’s unrivalled access to socalled ‘hard to reach’ communities in England.

Our national vision is communities of hope working together to serve and strengthen society. We believe everyone should have access to a supportive and nurturing community.

We will help achieve this through our mission to become a national social action mobiliser working with and through the Church of England to empower people of all ages, backgrounds and beliefs to:

LEGAL STRUCTURE AND BASIS OF CONSOLIDATION

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develop ‘train the trainer’ community finance programmes to help people budget, save and spend wisely. It is funded by a number of trusts and grants.

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 2021

After the relaxation of many of the Covid related restrictions that dominated 2020, 2021 brought a clearer picture of the longer term social and economic impact of the pandemic and what communities need to do to begin to rebuild and recover from long periods of isolation, significant economic adversity, and deep grief and loss. The introduction and rollout of the vaccination programme enabled some freedoms to return and for people to come together again and experience some sense of normality. As the cost-ofliving crisis began to emerge in the later part of the year, those who were already suffering from the economic impact of the pandemic faced even greater hardship.

To ensure that CUF was in the strongest position to lead and inspire during this difficult time, we concluded our strategy refresh in late 2021. This coincided with the continuation of plans started in 2020 to disaggregate our Together Network members and restructuring CUF’s legal position within those entities. This has reshaped our relationship with the Together Network to one of mutuality and creative support, partnership and collaboration, and has offered the opportunity to expand the Together Network beyond the original members. Closing the year, in addition to the 15 Core members with whom CUF has a legal relationship, we had 8 “associate members” join us in an informal relationship of support and resourcing and we expect this number to grow in the future. We are confident that these significant pieces of work have strengthened our organisation to face the post-pandemic challenges head on and deliver an extensive range of integrated activity and thought leadership work that is created by people, for people and responds to the issues that really matter in people’s lives.

As part of our increased emphasis on listening, we commissioned Dame Julia Unwin to lead on an inquiry into the future of faith-based social action: Faith in Society . This project concluded in 2021 and provided invaluable insight emphasising the importance of place and locally driven action which takes into account the lived experience of people, the need for greater investment in leadership. including recognition that the challenges and demands of leadership have changed, and on the need for a refreshed narrative about what faith-based social action is and how it contributes. The report advocates for a bold and ambitious approach that is also humble and appreciative, to effect genuine transformative change.

We also leveraged the rich knowledge produced by our ground-breaking 2020 GR:ACE Report and launched a new project, Growing Good , in December 2021 which enables churches to take and integrated approach to social action, discipleship and growth. Though in its very early stages, the Growing Good project team developed, piloted and launched the Growing Good Toolkit, including five films that focus on the stories of churches that are building new connections and making a difference, and ran a successful workshop for Together Network core members to equip them to share the toolkit in their communities. One toolkit pilot participant, Heather Black, Programme Leader, Mustard Seed in the Diocese of York told us:

“The Growing Good Toolkit provides a resource and a framework to help churches with their thinking and planning.” … “it helps people to look at their church and their community with fresh eyes.”

Our homelessness prevention and support programme, Positive Pathways , went from strength to strength in its fourth year. The central goal of Positive Pathways is to “support 1,400 clients at risk of or experiencing homelessness in Yorkshire to live more sustainable and thriving lives”. The project closed its fourth quarter having reached 1,566 people in total, exceeding its target and affecting real change across

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the county. The strength of the Positive Pathways approach is that workers are able to respond flexibly depending on the individual’s circumstances and needs, offering a truly bespoke and relational approach which helps them navigate a period of crisis into a place of greater stability – a place where their basic needs are met, including housing, and they can begin to think more actively and positively about the future.

In response to the Covid-19 pandemic, the government developed a Community Champions scheme to enhance existing communication strategies across a target group of councils and to fund work with grassroots advocates from affected communities. The aims of this scheme were to improve public health communication with hard-to-reach groups; and to dispel myths, reduce fear, and build confidence among ethnic minorities. Near Neighbours proposed to deliver a ‘surge’ of high-impact activities as part of this Community Champions scheme. This Surge programme engaged organisations that were already active in a community and had high levels of local goodwill and, through the different but complementary elements of the Near Neighbours programme, supported them to better respond to local issues. Near Neighbours and its partners have delivered an astonishing volume of activities through this Surge programme and have far exceeded the majority of targets set. These activities included community courses, projects to support youth leadership and events bringing people of different faiths and backgrounds together.

To support the government’s efforts to encourage vaccination take up, Near Neighbours delivered 56 events with 4,264 participants to disseminate public health messages. All of these activities have made an incredibly valuable contribution to communities and community organisations still struggling with the impacts of the pandemic. They have helped to dispel myths and reduce fear around vaccinations, and to build confidence among ethnic minorities in their own and their community’s ability to recover from this crisis.

Another significant success of 2021 was our administration and evaluation of the Windrush Day Grants Programme . We awarded 42 grants to different types of organisations across England including 6 local authorities. 4 national and regional museums and 32 community-based organisations. Grantees employed a range of creative approaches to achieve the aims of the scheme. The largest proportion of projects (21.4%) focused on storytelling, which often included the sharing of recipes, songs, music, or antiques. Other project activity included art installations, music or performance arts, work with schools, educational events, collation & opening of archives, radio projects, and community street parties or carnivals. Several projects (23.8%) carried out creative activities not captured under other categories, including a fashion show and sporting activity. Together, WDGS projects tapped into the assets and creative gifts of their local communities to celebrate the Windrush generations and deepen understanding of the Windrush legacy.

Given the backdrop of the economic impact of the pandemic and the onset of the cost-of-living crisis, the work of the Just Finance Foundation in both preventive and reactive financial education programmes proved vital to many people nationally and the team proved as creative and adaptable as ever. At the start of the year, JFF launched Milo’s Money and introduced the world to its newest financial education hero. In his picture book, website, and online game, Milo brightened classrooms, laptops and living rooms around the country. Combining practical skills such as coin recognition with soft skills and early exposure to how money works, Milo’s child centred approach was beloved by teachers and students alike. In September – nine long months after January’s short-lived return to school JFF was finally able to re-start the Lifesavers programme and reengage schools through retraining and restarting savings clubs. At the same time, the JFF Community Engagement Team worked tirelessly on the Covid Cash Course – launched at the start of the pandemic in April 2020 – and continued regular updates and delivery throughout the year. This train

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the trainer style course has reached hundreds of advisors and community workers throughout the country, providing vital, up-to-date information on constantly changing benefits and entitlements.

PLANS FOR THE FUTURE: 2022 AIMS AND OBJECTIVES

In 2022, CUF will focus on delivering its new purpose, to empower people of all ages, backgrounds and beliefs to serve, lead and speak.

As previously indicated, 2022 will be a year of testing and learning as we reorient ourselves strategically. We believe that through the collaborative work we have undertaken in 2021 to develop our strategy and core mission, and the experience we have gained through responding to unprecedented events over the last two years, we are best placed to continue in our mission as a social action mobiliser working with and through the Church of England, albeit in a more focused and integrated way that enables the CUF family to become greater than its constituent parts.

During 2021, we redeveloped our organisational risk register and reviewed all of our charity-wide policies to ensure that both were fit for purpose prior to our strategy relaunch. In 2022, we will continue to invest in business improvement, efficiency and effectiveness through an organisation-wide process project with an emphasis on business partnering.

In 2022, we will also refresh our group theory of change - a simple and clear articulation of the aggregate desired impact of CUF’s activities. We will also undertake a rebranding exercise to ensure that our identity aligns with our mission and aims. Further culture development will ensure CUF continues to be an organisation where staff feel fully engaged in our mission and can personally flourish.

Our key objectives for 2022 include:

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FINANCIAL REVIEW

Overview

The financial statements have been prepared in a way that reflects the charitable activities of CUF during 2021 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 2021 was £5.13m (2020: £6.17m). The decrease reflects the disaggregation and dissolution of joint ventures in the Together Network.

Unrestricted income received in the year was £1.4m (2020: £1.28m). This is an increase on the previous two years, strengthened by legacies received in the year and focussed fundraising efforts.

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Restricted income relates to funds for Near Neighbours £2.3m (2020: £0.9m), Just Finance Foundation £0.18m (2020: £0.35m), Together Network £0.54m (2020: £2.88m) and £0.71m to other programmes within CUF including the Windrush grants and Positive Pathways project.

Expenditure increased to £6.26m (2020: £5.83m) reflecting the receipt of the Covid related surge programme grant. Costs on raising funds decreased further as the organisation continued its transition into a more agile and lean structure.

The balance sheet funds for the group shows a significantly improved unrestricted closing position for the year of unrestricted funds at £1.29m (2020: £0.58m) but a reduced balance on restricted funds at £0.74m (2020: £2.58m). The cash position at the end of the year was £1.57m (2020: £3.18m) with net assets of the group being £2.03m (2020: £3.16m) at 31 December 2021. This reduction reflects the disaggregation and dissolution of joint ventures in the Together Network.

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 (2020: £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 2021, 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 are well above the level assessed by the Trustees. Plans and active monthly monitoring were instigated during 2020 to address the shortfall incurred during that 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, which positioned CUF back to a more than satisfactory reserve level for 2021. As such, the monthly monitoring was revised to quarterly monitoring.

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 £0.743m (2020: £0.843m) 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 of 2021 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.

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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.

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 Directors are set out on page 2.

The Trustees have established 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 in 2020 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.

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

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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 them a better understanding 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 Complexity Embedding coterminous board arrangements and
intentional approach with all boards for agreement
on further governance recommendations and wider
implementation.
Financial Sustainable financial
model		 Programmes require full funding before proceeding
to avoid excess demands on unrestricted income.
Conscious financial modelling without reliance on
government funding.
A cost recovery model is being implemented from
2022 to reduce the requirement for unrestricted
income to support restricted grant activity.
Reputation Reporting priorities Keeping funders informed of future programme
delivery and reports monitored and prioritised to
maximise opportunities to secure future funding.

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Operational Diversity awareness Significant improvements made with regards to
internal organisational awareness, training complete.
Practical progress to recruit broader representation
at board level to be prioritised for greater diversity
and lived experience.
Other Employment
uncertainty and
external competition		 Employment in the charity sector is volatile. CUF
benchmarking undertaken to understand market
position. Review of non-financial benefits to take
place and strengthen the reason to stay at CUF longer
term.
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, considering the levels of reserves, cash position and strategic plan, in addition to its financial and risk management systems. The Trustees and Senior Management Team 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 2021, an organisation wide benchmark against pay awards in similar charitable organisations took place and all salaries were reviewed accordingly, including those of senior staff. All staff are paid above the National Living Wage.

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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:

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 14[th] September 2022.

Approved by the Trustees on 14th September 2022 and signed on their behalf by:

___ ____ Andrew Barnett, OBE - 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 2021 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 group’s or the parent 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.

18

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.

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 group and the parent charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report included within the Trustees’ Report.

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

19

Re5PDfk5ibilitiE5 Df Tru5tee5 A5 ￿plaIn￿l rnare •J1￿ in resp5￿7b11rljes 5tatEfnènt Duf an p3ge 17, Ivtho are 315J the dIreLtri￿thE =harrtub￿￿rnpary fort￿￿ pUrpD￿5 of wmpan¥ Itth'l are re5PDTrsiblEford Pr￿FLIr3￿Cffi of t￿￿ri￿ana￿lStatErnerrt5 aTrdfor being￿15￿1￿dthat thEsrgiwe a aTrdf3iiuiwAf, 3ndfDr intEmaliontrd a5 thETru5tEe5 detrErminE 15 nE￿55ary bTrenablEthE PrEparth￿ of finaTrial 543terMtsth7t arefreEfram rtk7terial miLftalemEmt, whEthErduEta fraud orerrur. In preparing thE finaKial 513tewi15, thE Tn￿ee5 fOr355É￿5lnEth￿g￿ 3nd p3rEnt charitsesability tr ￿￿InuE45 a goI￿rantEe￿, 45 appliiakk. rt17Llers￿laÈed b)guinE{orK￿￿ and u5inE thE ￿￿]ntErn IAaSt50f ao)JJnlirgunle55thETtLL5 E[thErl￿d to liquidatE thE [h￿tty ortr Ce￿vra￿￿￿5, r￿3[￿11 altEMatI￿ bLrt todD SQ. Auditorf5 re5pansilJilitie5 foi the a￿lIt0f the ffinancial 5Metnents Our Cl¥8Xr￿￿5aret0obtOTTr re35DnablP455uraT￿￿3bDUtr whEthErthe fina￿.la4 statemuts 45 a 3re rrA55tatErner¢ iYTrRttLerd￿ tofrll￿ or Erroi, andts i55uE 3fLaudifJ5 reporttha i￿lud￿0Ur￿plNl￿L Re3sonablE 35Sura￿e￿ a hiEh OF￿￿13￿1￿ bLrf 15 not a gua￿￿te￿ that an4udt cor￿￿tErb￿bSXnplianCE, oUfwDEEU￿ iKludEé, bLrt re limttEdta- ITquirinE sf rn3nrnert 3Thd. vthEre apprDPri3fo, th3rged yJithg0￿rrAnCè, tt5 t￿￿(P￿rty 15 i n=DrnFI with law5 and rEulation5, and di5[LL￿rÈ their rEardinE =￿ME1 11n￿ vJith LIV￿ and rwlètion5', IiwErtiiE illrre5PDndErw rF ary, ￿1th re1E￿Bnt li￿nSI￿gOrre￿&WaLrthllrit iderrtified law54nd tegulatiun5tll engagemErttBam rErnaininE ary iTrdiiatiDnS of wnce throL¥hOutC￿r alth,. 3nd OJn5idErinE thE riskof acts ￿ thE{￿r[ty ythlth￿￿re oJnlTrrytr3pplioblE la￿and re￿ID￿r I￿ludinEfr￿￿L

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006 and the Charities Statement of Recommended Practice.

In addition, we evaluated the Trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to income recognition and significant one-off or unusual transactions.

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.

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:

Nicola Wakefield (Sep 30, 2022 09:05 GMT+1)

Nicola Wakefield (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-Sep-2022

21

CHURCH URBAN FUND

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31st DECEMBER 2021

Note
INCOME & EXPENDITURE
Income
Donations & Legacies
4, 5
Trusts Income
4, 6
Statutory Income
4, 7
Income from Charitable Activities
Near Neighbours Programme
2
Together Network
3
Just Finance Foundation
4
Other Income
8
Investment income
Total Income
Expenditure
Expenditure on Raising funds
9
Expenditure on Charitable activities
10
Enabling Infrastructure
Together Network
9a
Network Development
9b
Accessing Resources
Just Finance Foundation
9c
WCCM/Windrush
9d
Near Neighbours
Building Networks
9e
Creating Engagement
9f
Building Capacity
9g
Shaping the public sphere
9h
Disaggregation of Together Network subsidiaries
3a
Total Expenditure
Net (expenditure)/income
Transfers between funds
Balance brought forward at 1 January
Balances carried forward 31 December		 Unrestricted
Funds
2021
£'000
1,145
8
46
-
-
-
210
-		 Restricted
Funds
2021
£'000
37
309
463
2,300
535
77
-
-		 Total
2021
£'000
1,182
317
509
2,300
535
77
210
-		 Unrestricted
Funds
2020
£'000
992
59
18
-
-
-
203
3		 Restricted
Funds
2020
£'000
72
567
503
850
2,878
20
-
-		 Total
2020
£'000
1,064
626
521
850
2,878
20
203
3
1,409 3,721 5,130 1,275 4,890 6,165
287
-
226
40
-
-
145		 7
520
334
239
436
925
1,044
222
46		 294
520
560
239
476
925
1,044
222
191		 376
-
381
17
-
-
140		 35
2,498
79
308
509
539
253
209
31		 411
2,498
460
308
526
539
253
209
171
411 3,766 4,177 538 4,426 4,964
- 1,785 1,785 - 452 452
698 5,558 6,256 914 4,913 5,827
711
(6)
583		 (1,837)
6
2,575		 (1,126)
-
3,158		 361
8
214		 (23)
(8)
2,606		 338
-
2,820
1,288 744 2,032 583 2,575 3,158

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 the Together Network subsidiaries.

16 subsidiaries disaggregated from the group or were dissolved in 2021. One subsidiary has subsequently disaggregated from the group on 1st May 2022.

The notes on page 26 to page 36 form part of these financial statements.

22

CHURCH URBAN FUND

CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2021

Company Number: 02138994

Note
CURRENT ASSETS
Cash held on deposit
13
Bank
Debtors
14
CURRENT LIABILITIES
Amounts falling due within one year:
15
Grants awarded but not yet due for payment
CUF
NN
Other creditors
NET CURRENT ASSETS
NET ASSETS
FUNDS
Restricted
17
Church Urban Fund (CUF)
Together Network (TN)
Just Finance Foundation (JFF)
Near Neighbours (NN)
Unrestricted
TOTAL FUNDS
21		 £'000
£'000
743
824
632
2,199
0
9
158
167
2,032
2,032
225
257
112
150
744
1,288
2,032
2021		 £'000
843
2,338
432
113
74
268
2020		 £'000
3,613
455
3,158
3,158
323
1,984
172
96
2,575
583
3,158

These financial statements have been prepared in accordance with the provisions applicable to the Companies Act 2006 subject to the small companies regime.

Approved by the Trustees on 14th September 2022 and signed on their behalf by:

Alison Esther Grieve (Sep 28, 2022 14:06 GMT+1) Andrew Barnett OBE: Alison Grieve:

The notes on page 26 to page 36 form part of these financial statements

23

CHURCH URBAN FUND

CHARITY BALANCE SHEET AS AT 31 DECEMBER 2021

Company Number: 02138994

Note
CURRENT ASSETS
Cash held on deposit
13
Cash at bank
Debtors
14
CURRENT LIABILITIES
Amounts falling due within one year:
15
NET ASSETS
FUNDS
Restricted
17
Unrestricted
TOTAL FUNDS
Approved by the Trustees on 14th September 2022 and signed on
Andrew Barnett OBE:		 £'000
£'000
743
385
628
1,756
243
1,513
225
1,288
1,513
their behalf by:
Alison Grieve:
2021
Alison Esther Grieve (Sep 28, 2022		 £'000
£'000
843
123
384
1,350
444
906
323
583
906
2020
14:06 GMT+1)		 £'000
£'000
843
123
384
1,350
444
906
323
583
906
2020
14:06 GMT+1)
906
323
583
906

The notes on page 26 to page 36 form part of these financial statements

24

CHURCH URBAN FUND

CONSOLIDATED STATEMENT OF CASH FLOWS for the year ended 31 December 2021

Reconciliation of net movement in funds to net cash flow
from operating activities
Net (expenditure)/income for the reporting period (as per
statement of financial activities)
Adjustments for:
(Increase)/Decrease in debtors
(Decrease) in creditors
Net cash (used in)/provided by operating activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the start of the reporting period
Cash held on deposit
Bank
Cash and cash equivalents at the end of the reporting period		 £'000
£'000
(1,126)
(200)
(288)
(488)
(1,614)
(1,614)
3,181
1,567
743
824
1,567
2021		 £'000
£'000
(1,126)
(200)
(288)
(488)
(1,614)
(1,614)
3,181
1,567
743
824
1,567
2021		 £'000
£'000
338
293
(236)
57
395
395
2,786
3,181
843
2,338
3,181
2020		 £'000
£'000
338
293
(236)
57
395
395
2,786
3,181
843
2,338
3,181
2020
(1,614) 395
(1,614)
3,181		 395
2,786
1,567 3,181
743
824		 843
2,338
1,567 3,181

The notes on page 26 to page 36 form part of these financial statements

25

CHURCH URBAN FUND

Notes to the Financial Statements for the year ended 31 December 2021

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 £607k (2020: £240k).

The Trustees have reviewed the charity's financial position, considering the levels of reserves, cash position and strategic plan, in addition to its financial and risk management systems. The Trustees and Senior Management Team 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.

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 and included within staff costs (note 10).

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 2021 or 2020.

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 Department of Levelling Up, Housing and Communities (DLUHC) and from the Church Urban Fund.

Income
Income from Charitable Activities - DLUHC 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
Transfer to Church Urban Fund
Total expenditure
Net income/(expenditure)
Balance brought forward at 1 January
Balance carried forward at 31 December		 2021
2020
£'000
£'000
2,300
850
3
50
2,303
900
925
539
1,044
253
-
25
102
81
100
90
20
13
2,191
1,001
58
2,249
1,001
54
(101)
96
197
150
96

3a. RESULTS OF SUBSIDARIES - TOGETHER NETWORK

The Together Network comprises of 17 small subsidiaries which are consolidated in the CUF group accounts at the year end. A summary of the 17 subsidiaries are shown below:

Wellsprings Together
Total		 Church
Urban
Fund
Income
Other External
Income
Total Income Total Expenditure
Balance b/f 01/01/21
Net Assets
31/12/2021
£'000
£'000
£'000
£'000
£'000
£'000
2
67
69
113
301
257
2
67
69
113
301
257

During 2021, two of the subsidiaries; Together Lancashire and Capital Mass, were dissolved. The balances below reflect the figures up to the point of dissolution.

Together Lancashire
Capital Mass
Total		 Church
Urban
Fund
Income
Other External
Income
Total Income Total Expenditure
Balance b/f 01/01/21
Net Assets At
Dissolution
£'000
£'000
£'000
£'000
£'000
£'000
-
-
-
3
3
-
-
6
6
48
42
-
-
6
6
51
45
-

28

During 2021, fourteen of the subsidiaries disaggregated from the group The balances below reflect the figures up to the point of disaggregation.

Thrive Together Birmingham
Transformation Cornwall
Transforming Notts Together
Together Southwark
Together Newcastle
Together Liverpool
Transforming Lives Together
Communities Together Durham
Together Middlesbrough and Cleveland
Together Canterbury
Transforming Plymouth Together
Together Norfolk
Greater Together Manchester
Together in Sussex
Total
Total of all subsidiaries		 Church
Urban
Fund
Income
Other External
Income
Total Income Total Expenditure
Balance b/f 01/01/21
Net Assets At
Disaggregation
£'000
£'000
£'000
£'000
£'000
£'000
-
126
126
97
303
332
-
28
28
13
30
45
-
2
2
11
109
100
-
(9)
(9)
-
44
35
-
31
31
28
64
67
15
37
52
43
108
117
-
30
30
-
-
30
-
56
56
55
81
82
12
10
22
14
185
193
-
-
-
-
125
125
-
65
65
11
224
278
-
27
27
34
83
76
14
50
64
42
249
271
-
9
9
8
33
34
41
462
503
356
1,638
1,785
43
535
578
520
1,984

3b. SUMMARY OF THE TOGETHER NETWORK

A summary of the 17 subsidiaries that formed part of Together Network are shown below. The Trustees for each subsidiary were appointed by CUF and one other organisation, with CUF having control by the virtue of the majority of Trustees being appointed up until the point of dissolution or disaggregation.

Company Charity
Together Network Reg. No. Reg. No. Trustees appointed by CUF and: Status
Wellsprings Together 11423641 1179481 Leeds Diocesan Board of Finance Subsidiary at 31/12/21
Together Lancashire 7966145 1147848 Bishop of Blackburn & Lancashire Methodist District Dissolved 27/07/21
Capital Mass 9257264 1159501 London Diocesan Board of Finance Dissolved 03/08/21
Thrive Together Birmingham 8039675 1153942 Bishop of Birmingham Disaggregated 02/03/21
Transformation Cornwall 7329249 1138706 Bishop of Truro & Cornwall Methodist District Disaggregated 17/03/21
Transforming Notts Together 8399842 1152870 Southwell & Nottingham Diocesan Board of Finance Disaggregated 02/02/21
Together Southwark 8257445 1153362 South London Church Fund & Southwark Diocesan Board of Finance Disaggregated 28/02/21
Together Newcastle 8139375 1150824 Newcastle Diocesan Board of Finance Disaggregated 30/04/21
Together Liverpool 8190148 1151977 Liverpool Diocesan Board of Finance Disaggregated 02/03/21
Transforming Lives Together 8419285 1157348 Chester Diocesan Board of Finance Disaggregated 14/01/21
Communities Together Durham 8860961 1157214 Durham Diocese Board of Finance Disaggregated 06/09/21
Together Middlesbrough and Cleveland 9196281 1159355 York Diocesan Board of Finance Disaggregated 27/01/21
Together Canterbury 8763875 1159936 Canterbury Diocesan Board of Finance Disaggregated 26/1/21
Transforming Plymouth Together 9716832 1166026 Exeter Diocesan Board of Finance Disaggregated 16/03/21
Greater Together Manchester 9490223 1167704 Manchester Diocesan Board of Finance Disaggregated 20/6/21
Together Norfolk 9725781 1166382 Norwich Diocesan Board of Finance Disaggregated 21/09/21
Together in Sussex 10375699 1171719 Chichester Diocesan Board of Finance Disaggregated 06/05/21

29

4. RESULTS OF SUBSIDARIES - JUST FINANCE FOUNDATION

Just Finance Foundation is a charitable company limited by guarantee promoting a fairer financial system and equipping people to manage their money better. It is funded by a number of trusts and grants. Company Number 10204667 and Charity Number 1172050.

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
Local Communities
Just Finance Local
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
Together Network members		 2021
2021
£'000
£'000
Unrestricted
Restricted
513
16
632
-		 2021
2020
£'000
£'000
21
66
82
256
-
3
77
5
-
15
180
345
-
5
180
350
2021
2020
£'000
£'000
101
105
44
140
95
35
-
28
240
308
(60)
42
172
130
112
172
2021
2020

£'000
£'000

Total
Total

529
596
632
402
1,145
16		 1,161
998
2021
2021
£'000
£'000
Unrestricted
Restricted
8
224		 2021
2020

£'000
£'000

Total
Total

232
320
8
224		 232
320
2021
2021
£'000
£'000
Unrestricted
Restricted
46
463		 2021
2020

£'000
£'000

Total
Total

509
518
46
463		 509
518
2021
2021
£'000
£'000
Unrestricted
Restricted
203
-
7
-		 2021
2020

£'000
£'000

Total
Total
203
203
7
-
210
-		 210
203

30

9. EXPENDITURE
Staff
costs
Programme
costs
Other direct costs
Support costs
2021
2020
£'000
£'000
£'000
£'000
£'000
£'000
(note 10)
(note 9a-h)
(note 12)
Expenditure on Raising Funds
194
-
88
12
294
411
Expenditure on Charitable Activities
Enabling Infrastructure
Together Network (9a)
304
153
-
63
520
2,498
Network Development (9b)
192
310
47
11
560
460
Accessing Resources
Just Finance Foundation (9c)
131
61
1
46
239
308
Windrush/Christian Meditation Grants (9d)
63
410
3
-
476
526
Near Neighbours Programme
Building Networks (9e)
84
776
23
42
925
539
Creating Engagement (9f)
128
820
31
65
1,044
253
Building Capacity (9g)
99
43
30
50
222
209
Shaping the Public Sphere (9h)
74
-
113
4
191
171
Total charitable activities
1,075
2,573
248
281
4,177
4,964
Disaggregation of Together Network Subsidiaries
-
1,785
-
-
1,785
452
Total expenditure
1,269
4,358
336
293
6,256
5,827
9a. ENABLING INFRASTRUCTURE: TOGETHER NETWORK
2021
2020
£'000
£'000
Programme Costs
153
838
Staff costs
304
1,360
Support costs
63
300
520
2,498
9b. ENABLING INFRASTRUCTURE: NETWORK DEVELOPMENT
2021
2020
£'000
£'000
Development Programmes
-
4
Capacity Building through resources & events
310
70
310
74
Staff costs
192
224
Support costs
58
162
560
460
9c. ENABLING INFRASTRUCTURE: JUST FINANCE FOUNDATION
2021
2020
£'000
£'000
Programme costs
61
93
Staff costs
131
194
Support costs
47
21
239
308
9d. ACCESSING RESOURCES: WINDRUSH/CHRISTIAN MEDITATION GRANTS
2021
2020
£'000
£'000
Grants awarded to projects during the year (see note 19a for details)
523
511
Less writebacks of awards
(113)
(2)
Net grant awards
410
509
Staff costs
63
17
Support costs
3
-
476
526
On consolidation grants totalling £43k (2020: £229k) awarded to each of the subsidiaries under the Together Network were eliminated_(note 3)_.		 Staff
costs
Programme
costs
Other direct costs
Support costs
2021
2020
£'000
£'000
£'000
£'000
£'000
£'000
(note 10)
(note 9a-h)
(note 12)
194
-
88
12
294
411
304
153
-
63
520
2,498
192
310
47
11
560
460
131
61
1
46
239
308
63
410
3
-
476
526
84
776
23
42
925
539
128
820
31
65
1,044
253
99
43
30
50
222
209
74
-
113
4
191
171		 Staff
costs
Programme
costs
Other direct costs
Support costs
2021
2020
£'000
£'000
£'000
£'000
£'000
£'000
(note 10)
(note 9a-h)
(note 12)
194
-
88
12
294
411
304
153
-
63
520
2,498
192
310
47
11
560
460
131
61
1
46
239
308
63
410
3
-
476
526
84
776
23
42
925
539
128
820
31
65
1,044
253
99
43
30
50
222
209
74
-
113
4
191
171
1,075
2,573
248
281
-
1,785
-
-		 4,177
4,964
1,785
452
1,269
4,358
336
293		 6,256
5,827
2021
2020
£'000
£'000
153
838
304
1,360
63
300
520
2,498
310
74
192
224
58
162
560
460
2021
2020
£'000
£'000
61
93
131
194
47
21
239
308
2021
2020
£'000
£'000
523
511
(113)
(2)
410
509
63
17
3
-
476
526

Writebacks of awards represent grants awarded in previous years that have been unclaimed. £37k was returned to MHCLG for 2020 Windrush Grants and £74k was returned to Christian Meditation Trust.

31

ACCESSING RESOURCES: NEAR NEIGHBOURS PROGRAMME

9e. BUILDING NETWORKS

Funding Delivery Partners
Thrive Together Birmingham
St Philip's Centre, Leicester
Transforming Notts Together, Nottingham
Centre for Theology and Community, East London
Wellsprings Together, Bradford, Leeds & Dewsbury
King's Centre, West London
Transforming Communities Together, Black Country
Greater Together Manchester, Rochdale & Bury
Together Lancashire, Burnley, Hyndburn, Rossendale, Blackburn, Pendle
Building Bridges Burnley
Grassroots, Luton
Peterborough
Staff costs
Other direct costs
Support costs
9f. CREATING ENGAGEMENT
Grants awarded to projects during the year (see note 20a for details)
Less writebacks of awards
Net grant awards
Staff costs
Other direct Costs
Writebacks of awards represent grants awarded in previous years that have been unclaimed.
9g. BUILDING CAPACITY
Funding Delivery Partners
Faith Leaders capacity building
Christian Muslim Forum
Council for Christians and Jews
Nisa Nashim
Young Leaders capacity building
Catalyst Programme
Ripple Effect Programme
Community capacity building
Real People Honest Talk
Stories of Hope
Leadership for Effective Change
Staff costs
Other direct costs
Support costs
9h. ACCESSING RESOURCES: SHAPING THE PUBLIC SPHERE
Publications and printing
Web development and digital
Promotion and production
Research and evaluation
Staff costs
Support costs		 2021
2020
£'000
£'000
85
47
62
30
53
11
77
45
69
46
83
42
67
44
69
44
-
16
46
-
83
46
82
43
776
414
84
107
23
3
42
15
925
539
2021
2020
£'000
£'000
841
198
(21)
(11)
820
187
128
56
96
10
1,044
253
2021
2020
£'000
£'000
-
8
-
4
-
4
2
18
25
6
13
6
-
4
6
43
53
99
134
30
4
50
18
222
209
2021
2020
£'000
£'000
1
-
1
4
16
3
95
49
113
56
74
78
4
37
191
171

32

10. STAFF COSTS

STAFF COSTS
Salaries
Social Security
Pensions		 2021
2020
£'000
£'000
1,081
2,086
98
168
90
128
1,269
2,382

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

The total redundancy costs during the year across the group was £0k (2020: £31k)

The total employment benefits of the key management personnel of the charity, including employer pension contributions were £291k (2020: £412k).

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

e number of staff whose emoluments for the year exceeded £60,000 were:
Normal emoluments
(£60,000 - £70,000)
(£70,000 - £80,000)
(£80,000 - £90,000)		 2021
2020
3
2
-
1
1
-
4
3

11. STAFF NUMBERS

The average monthly headcount for the group was 37 staff (2020: 65). The decrease is due to the disaggregation and dissolution of subsidiaries. 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		 2021
2020
22
57
4
3
1
1
5
4
32
65

None of the trustees received any benefits from employment with the charity or its subsidiaries in the year (2020: £nil). Appropriate expenses incurred in attending meetings and on other business of CUF were reimbursed to Trustees as follows:

Travel, subsistence and other expenses
The amount waived by trustees for the year was_£nil (2020: £nil)._		 No.
£'000
No.
£'000
2021
2020
2
1
8
5

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
Intercompany account (Just Finance Foundation)		 2021
2020
£'000
£'000
4
10
564
333
5
29
59
60
Group		 Total
Total
2021
2020
£'000
£'000
79
95
33
46
44
110
1
5
136
347
293
603
2021
2020
£'000
£'000
743
843
743
843
2021
2020

£'000
£'000

4
10

564
333

5
24

51
17
Charity
632
432		 624
384
4
632
432		 628
384

33

15. CURRENT LIABILITIES

15. CURRENT LIABILITIES
Group Charity
2021 2020 2021 2020
£'000 £'000 £'000 £'000
Amounts falling due within one year:
Grants payable CUF_(note 16)_ - 113 - 113
Grants payable NN_(note 16)_ 9 74 9 74
Taxation & Social Security 9 5 9 3
Accruals 29 42 19 28
Other creditors 120 221 113 98
167 455 150 316
Intercompany account (Near Neighbours) - - 93 93
Intercompany account (Just Finance Foundation) - - 35
167 455 243 444
16. MONEY FOR LOCAL ACTION
Windrush and CMT Creating Engagement
CUF Programme NN Programme Total Total
2021 2020 2021 2020 2021 2020
£'000 £'000 £'000 £'000 £'000 £'000
Balance brought forward 113 89 74 9 187 98
Grants awarded (note 19 & 20) 523 511 841 198 1,364 709
Writebacks (113) (2) (21) (11) (134) (13)
523 598 894 196 1,417 794
Less
Grants paid during year 538 486 904 133 1,442 619
Returned Grants (15) (1) (19) (11) (34) (12)
523 485 885 122 1,408 607
Balance of grants payable - 113 9 74 9 187
17. RESTRICTED FUNDS
Balance at Income Expenditure Disaggregation of Transfers Balance at
2020 Subsidiaries between funds 2021
£'000 £'000 £'000 £'000 £'000 £'000
CUF Programme
Windrush Grant - 463 463 - - -
Christian Meditation Grant (WCCM) 75 (155) (74) - 6 -
Network Development 248 395 433 - 15 225
323 703 822 - 21 225
Near Neighbours 96 1,259 1,147 - (58) 150
Near Neighbours - Creating Engagement - 1,044 1,044 - - -
96 2,303 2,191 - (58) 150
Together Network 1,984 535 520 (1,785) 43 257
Just Finance Foundation 172 180 240 - - 112
2,575 3,721 3,773 (1,785) 6 744

The Windrush Grants support groups to commemorate, celebrate and educate people on, 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. £155k was returned to Christian Meditation Trust at the end of the agreement with WCCM reflected in the income for 2020. The Network Development costs are to support development work across the network.

The transfer of £58k represents expenditure transferred to Church Urban Fund for the completion of the covid-related Surge programme. 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.

18. OPERATING LEASE

18. OPERATING LEASE
2021
2020
£'000
£'000
1 year
11
11
19a ACCESSING RESOURCES: CHRISTIAN MEDITATION TRUST/WINDRUSH GRANTS
GRANTS AWARDED IN 2021 BY SECTOR
Christian Meditation Trust/Together Grants
Community
Health/Mental Health
Homeless/Housing
Total Grants Awarded before writebacks (see Note 9d)
Land and Building
In 2020, CUF moved to The Foundry and the new lease agreement requires four months notice to vacate the office space.		 2021
2020

£'000
£'000

-
1
2021
2020
£'000
£'000
500
500
-
8
23
3
Other
523
511

34

19b. GRANTS AWARDED IN 2021 BY REGION (DIOCESE)

b. GRANTS AWARDED IN 2021 BY REGION (DIOCESE)
Bath & Wells
Birmingham
Blackburn
Bristol
Chelmsford
Chichester
Coventry
Derby
Exeter
Gloucester
Leicester
Leeds
Lichfield
Lincoln
Liverpool
London
Manchester
Newcastle
Oxford
Rochester
St Albans
St Edmundsbury & Ipswich
Salisbury
Sheffield
Southwark
Southwell & Nottingham
York
Grants covering more than one Diocese
Total Grants Awarded before writebacks(see Note 9d)
a. NEAR NEIGHBOURS PROGRAMME - CREATING ENGAGEMENT IN 2021 BY ACTIVITY
Local Initiatives
Near Neighbours Small Grants
Community Covid Relief Grants
Community Covid Relief Mid-Sized Grants
Total Grants Awarded before writebacks(see Note 9f)
b. NEAR NEIGHBOURS PROGRAMME - CREATING ENGAGEMENT IN 2021 BY REGION
Regional Centre
Centre for Theology and Community, London
St Philip's Centre, Leicester
Thrive Together Birmingham
Faithful Neighbours, Bradford
King's Centre, West London
Transforming Communities Together, Black Country
Grassroots, Luton
Greater Manchester
Building Bridges Burnley
Transforming Notts Together
Peterborough
Direct grants not awarded via regional centre
Total Grants awarded before writebacks(see Note 9f)		 2021
2020
£'000
£'000
-
17
10
13
-
4
53
38
19
33
-
7
15
-
13
-
-
18
11
-
29
19
56
32
18
43
-
16
5
-
70
67
12
30
15
-
26
23
11
12
33
27
6
-
-
2
10
15
74
86
21
5
16
3
-
1
523
511
2021
2020
£'000
£'000
270
198
396
-
175
-
841
198
2021
2020
£'000
£'000
71
33
53
7
61
14
71
25
81
23
52
29
67
31
79
11
42
-
62
11
27
14
175
-
Total 841
198

20a. NEAR NEIGHBOURS PROGRAMME - CREATING ENGAGEMENT IN 2021 BY ACTIVITY

20b. NEAR NEIGHBOURS PROGRAMME - CREATING ENGAGEMENT IN 2021 BY REGION

Total Grants awarded before writebacks (see Note 9f)

35

21. NET ANALYSIS OF ASSETS AND LIABILITIES BY FUND

NET ANALYSIS OF ASSETS AND LIABILITIES BY FUND
Current assets
Current liabilities
Church Urban Fund
Near Neighbours
Just Finance Foundation
Together Network		 Unrestricted
Restricted
2021
2020
£'000
£'000
£'000
£'000
1,425
774
2,199
3,613
(137)
(30)
(167)
(455)
1,288
744
2,032
3,158
1,288
225
1,513
906
-
150
150
96
-
112
112
172
-
257
257
1,984
1,288
744
2,032
3,158

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 £855k (2020: £228k) to administer the Small Grants programme.

Near Neighbours made a contribution of £468k (2020: £136k) to CUF for the administration of the overall programme. At the year end, the intercompany balance was £93k (2020: £93k) owed by CUF.

During the year CUF granted the Just Finance Foundation £nil (2020: £5k) in support of the subsidiary and Just Finance Foundation made a contribution of £50k (2020: £10k) to CUF towards the shared central service costs provided by CUF. At the end of the year intercompany balance of £4k was owed to CUF (2020: £35k owed by CUF).

During 2021 CUF paid £43k (2020: £229k) to the subsidiaries under the Together Network. The intercompany balance for the Together Network was nil (2020: nil) owed by CUF. In the group accounts these transactions are eliminated on consolidation.

During the year CUF made payments of £11k to Invigilo Consulting. Robert Hallam is a CUF Trustee and a director of Invigilo Consulting.

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

Wellsprings Together disaggregated from the group on 1 May 2022.

36