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2023-10-31-accounts

Registered Charity No: 1044068

ERITREAN ORTHODOX CHRISTIAN (ST. MICHAEL’S) COMMUNITY CHURCH

ANNUAL REPORT AND

ACCOUNTS

FOR THE YEAR ENDED 31 OCTOBER 2023

Page 1

Page 2

CONTENTS

CHARITY INFORMATION ……………………………………………………………….………………………………….…. 4 TRUSTEES’ REPORT ..................................................................................................................... 5 Name and Objects ....................................................................................................................... 5 Appointment and induction of Trustees ..................................................................................... 5 TRUSTEES’ REPORT ..................................................................................................................... 6 Organisation ................................................................................................................................ 6 2023 Activities and Finance ........................................................................................................ 6 Plans for 2023/2024 .................................................................................................................... 7 STATUTORY INFORMATION ........................................................................................................ 8 Members of the Board of Trustees ............................................................................................. 8 Statement of Financial Responsibilities ...................................................................................... 8 Respective responsibilities of the Trustees and the examiner ................................................... 9 Basis of independent examiner’s report .................................................................................... 9 Independent examiner’s statement ........................................................................................... 9 Statement of Financial Activities………………………………………………………………………………………. 10 - 11 Charity Balance Sheet………………………………………………………………………………………………………. 12 Notes forming part of the Financial Statements……………………………………………………………….. 13-20

Page 3

Members of the Board of Trustees at 31 October 2022

Abrahaley Mebrahtu (Chairman) Dr Semere Tewolde (company Secretary) Solomon Russom (Treasurer) Fitsum Khasa Berhane GhebreAlfa Yacob Haile Secretary Dr Semere Tewolde Charity number 1044068 Registered in England and Wales Registered office 78 Edmund Street London SE5 7NR Bankers HSBC Bank PLC Harry Weston Road, Binley Coventry CV3 2TQ LLOYDS BANK 1 Silver Street Enfield Middlesex EN1 3EE

Page 4

TRUSTEES’ REPORT

The Board of Trustees presents its report with the unaudited accounts of Eritrean Orthodox Christian (St Michael’s) Community Church for the year ended 31 October 2023. The financial statements have been prepared in accordance with relevant accounting policies and in compliance with the charity’s governing document and applicable law – the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the latest Charities Statement of Recommended Practice (SORP) Financial Reporting Standard 102, as amended as from the year starting 1 January 2019.

Name and Objects

The Eritrean Orthodox Christian (St. Michael’s) Community Church is a registered charity in England and Wales, number 1044068.

The Trustees are responsible for the governance of the charity and serve as Trustees of the charity. The Trustees who were in place at year-end and all those who served during the year are set out on pages 4.

The Objects of the charity, as set out in the constitution, are:

Public Benefit

In compliance with their duty under the Charities Act 2011, the Trustees have had due regard to guidance on public benefit published by the Charity Commission. In particular, the Act requires the Trustees to explain how the activities of the charity benefit the public or a section of it.

The Trustees believe that the fundamental purpose of the Eritrean orthodox Christian (St. Michael’s) Community Church – to advance the Christian religion and relieve poverty and distress from family members – is, per se , of benefit to society at large. Faith is important, not just for its intrinsic value to the individual, but because it is so often the motivating factor in enabling people to turn their lives around; and then equipping them to make effective and relevant contributions to society. More specific benefits to the public are demonstrated, either implicitly or explicitly, under the various sections of the report of activities. It is the Trustees’ aim constantly to seek ways of increasing the impact and effectiveness of the charity so that they can expand the benefits provided by the charity as widely as possible.

Appointment and induction of Trustees

Every three years the Management Committee may appoint new Trustees from amongst the membership of the charity. At the third of their term, Trustees must retire from office but may be re-elected by members of the charity. Any person who subscribes to the objects may become a member of the charity, subject to their willingness and fitness for purpose.

Page 5

TRUSTEES’ REPORT

The Management Committee is responsible for identifying and proposing potential new Trustees. The Committee gives relevant information to potential candidates, and induction and training as appropriate to newly elected Trustees.

The officers of the charity have the responsibility of assessing the skills offered by the Board and identifying areas which need strengthening.

Organisation

The charity is based in the United Kingdom and has its church in South London. Its congregation come from all parts of London. The Board of Trustees meets at least quarterly.

The day-to-day running of the charity’s is conducted by the Management committee and reports to the trustees every month about the administration and activities of the charity.

2023 Activities and Finance

back to normal life. The church has conducted it services every Sunday throughout the year with no restrictions. Over ten occasions of Special Saint’s services were conducted. The Charity conducted christening and wedding services every Sunday throughout the 2022-2023.

The church relies on volunteers to func�on. This is not only during the Sunday Service, from welcoming people to helping run the service itself, but beyond that to the mid-week small group. In 2022-23 our church was open for public worship and other gatherings. This was significant moment in the life of our community a�er the pain of mul�ple lockdowns. This year was par�cularly important for our community with children and for our elderly genera�on.

Our church is keen to offer a range of services during the week and over the course of the year that our community find both beneficial and spiritually fulfilling. For example, church services are conducted for each angels every month and our church are also open for congregation to have a quiet, intimate and reflective time for worship and personal private conversations. During the pandemic our church community has provided support collectively and individually. God bless to those who rise to help vulnerable people in this difficult time. Pastoral care continues as usual helping other is a demonstration of our faith, whether practical, emotional or spiritual.

We also say special thanks to our management team who continued to disseminate our church services and spiritual teachings to wider population using videocall technology. This enabled us to reach to those who are unable to attend the church service due to different reasons.

We delight in our ecumenical links that we have with other Eritrean Orthodox churches in the UK and in particular the close relationship we have with Oriental Orthodox Churches in the UK.

In 2023 the Charity achieved a net operating income of £176,539 (2021: £207,827). The outcome of this year is lower than that of 2022 this is due to increased building maintenance costs to keep it into the required state as well as staff increment was made in arrears for the years where inflationary adjustment was not made on time. The Management Committee main working priority in the year was strengthening the governance of the charity by approaching new trustees with required skills and experience as well as finding a larger property for our church to alleviate the shortage of space which occurs on many occasions.

Page 6

Plans for 2023/2024

The trustees and the Management Committee plan for the coming year include the following:

Page 7

STATUTORY INFORMATION

Members of the Board of Trustees

Members of the Board of Trustees who served as directors during 2022 were:

Abrahaley Mebrahtu Dr. Semere Tewolde Solomon Russom Yacob Haile Fitsum Khasa Berhane GhebreAlfa

Statement of Financial Responsibilities

Charity Law requires the members of the Board of Trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity as at the end of the financial year and of its incoming resources and application of resources for that year. It is also the Trustees’ responsibility to maintain adequate accounting records, safeguard the assets of the charity and take reasonable steps in preventing and detecting fraud and other irregularities.

The Trustees are required to:

By the order of the Board of Trustees

Abrahaley Mebrahtu Chairman of the trustees

24[th] August 2024

Page 8

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF ERITREAN ORTHODOX CHRISTIAN COMMUNITY CHURCH

I report on accounts of the Church for the year ended on 31[st] October 2023 which are set out on pages from 10 to 20.

Respective responsibilities of the Trustees and the examiner

As the charity’s Trustees you are responsible for the preparation of the accounts; you consider that an audit is not required for this period under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed. It is my responsibility to:

Basis of independent examiner’s report

My examination was carried out in accordance with the General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts.

Independent examiner’s statement

In connection with my examination, no matter has come to my attention:

Page 9

STATEMENT OF FINANCIAL ACTIVITIES STATEMENT OF FINANCIAL ACTIVITIES STATEMENT OF FINANCIAL ACTIVITIES STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 OCTOBER 2023
Notes **Unrestricted ** Designated Restricted Total Total
funds funds funds 2023 2022
£ £ £ £ £
Income from:
Donations 3 250,841 - - 250,841 264,145
Other trading activities:
Sale of books and merchandise 16,431 - - 16,431 8,005
Rental income 15,596 - - 15,596 19,396
InterestIncome 8,179 - - 8,179 -
Other income 639 - - 639 201
Total Income 291,686 - - 291,686 291,747
Expenditure on:
Charitable Activities:
Cost of charitable activities 4 89,426 - - 89,426 63,537
Trading expenses 6,857 - - 6,857 -
Governance and administration 5 18,864 - - 18,864 20,382
Total expenditure 115,147 - - 115,147 83,919
Net income for the year 176,539 - - 176,539 207,828
Reconciliation of funds:
Total funds brought forward 580,683 1,019,899 241,820 1,842,402 1,634,574
Net movement in funds 176,539 - - 176,539 207,828
Transfer of funds (600,000) 600,000 - - -
Total funds carried forward 157,222 1,619,899 241,820 2,018,941 1,842,402

Page 10

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 OCTOBER 2023

COMPARATIVE
FIGURE
Notes
Income from:
Donations
3
Other trading
activities
Sale of books &
merchandises
Rental income
Other income
Expenditure on:
Charitable
activities
Cost of charitable
activities
4
Trading expenses
Governance and
administration
5
Total
expenditure
Net income for the
year
Reconciliation of
funds:
Total funds brought forward on
01/11/2020
Total fund balances at 31 October
2021		 Unrestricted
Designated
Restricted
funds
funds
funds
£
£
£
264,145
-
-
8,005
-
-
19,396
-
-
201
-
-
291,747
-
-
63,537
-
-
-
-
-
20,382
-
-
83,919
-
-
207,828
-
-
372,855
1,019,899
241,820
580,683
1,019,899
241,820		 TOTAL
Total
2022
2021
£
£
264,145
235,237
8,005
3,400
19,396
18,396
201
39
291,747
257,072
63,537
68,269
- -
20,382
22,481
83,919
90,750
207,828
166,322
1,634,574
1,468,252
1,842,402
1,634,574

Page 11

BALANCE SHEET AS AT 31 OCTOBER 2023

BALANCE SHEET
AS AT 31 OCTOBER 2023
Notes
Fixed assets
Tangible assets
15
Current assets
Debtors
9
Treasury deposit
Cash at bank and in hand
16
Creditors: amounts falling due
within one year
10
Net current assets
Total assets less current liabilities
Funds
Unrestricted funds:
12
Designated funds
13
Restricted funds
11		 2023
£
£
402,956
402,956
31,500
460,151
1,126,195
1,617,846
(1,861)
1,615,985
2,018,941
157,222
1,619,899
241,820
2,018,941		 2022
£
31,500
460,151
1,126,195
1,617,846
(1,861)		 £
21,000
1,415,751		 £
410,559
410,559
1,431,843
1,436,751
(4,908)
1,842,402
580,683
1,019,899
241,820
1,842,402

For the year ending 2023 the charity has taken advantage of the audit exemption conferred by section 477 of the Company Act 2006. No member has required the charity to obtain an audit of its accounts for the year in question in accordance with section 476.

The trustees acknowledge the responsibility for: (1) Ensuring the charity keeps accounting records which comply with the requirements of the Act; and (2) preparing accounts which give a true and fair view of the state of affairs of the charity as at the of this financial year in accordance with requirements of Companies Act and related Charity Acts so far as applicable to the charity.

The accounts on page 10 to 17 were approved by the trustee on 16[th] August 2024 and signed on their behalf by:

Abrahaley Mebrahtu, Chairman Date: 24[th] August 2024

Page 12

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED ON 31 OCTOBER 2023

1. Eritrean Orthodox Christian (St. Michael) Community Church

The Eritrean Orthodox Christian (St. Michael) Community Church is a registered charity with the number 1044068.

The charity qualifies for exemption from the requirement to provide a cash flow statement for the year ended on 31 October 2023.

The trustees neither received any remuneration and reimbursement nor had any related party transactions during the year.

2. Principal Accounting Policies

a) Basis of preparation

The accounts have been prepared in accordance with “Accounting and Reporting by Charities: Statement of Recommended Practice” applicable to charities preparing their accounts in accordance with the Financial Reporting Standard (FRS 102) applicable in UK and Republic of Ireland as amended for accounting periods commencing from 1 January 2019. The charity is a Public Benefit Entity as defined by FRS102.

The Accounts have been prepared under the historical cost convention and accrual basis. The principal accounting policies adopted are set out below.

b) Tangible assets - Building costs

Land and building are valued at cost. Please refer note 1 item i’ and 15 for details.

c) Incoming Resources

Income is recognised in the period in which the charity is entitled to the receipt and is likely that economic benefits will flow to the charity and the amount can be measured with reasonable certainty. Income is deferred only when the charity has to fulfil conditions before it becomes entitled to it or where the donor has specified that the income is to be expended in a future period. Deferred income is released in the period in which the expenditure is incurred or in the year depreciation is charged to the Statement of Financial Activities.

d) Donations and similar incoming resources

Voluntary income is received by way of donations and gifts and is included in full in the Statement of Financial Activities when received. Donations are accounted for on cash receipt basis unless deferred. A substantial proportion of the income of the charity is derived from voluntary sources which cannot be controlled fully until entered in the accounting records. The accounting procedures are intended to ensure that income received is banked promptly.

The value of services provided by volunteers has not been included as it is difficult to quantify.

Page 13

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2023

e) Grant received

Grants, including grants for the purchase of fixed assets are recognised in full in the Statement of Financial Activities in the year for which they are received.

f) Interest receivable

Interest income is included when received by the charity.

g) Resources expended

All expenditures are recognised when there is a legal or constructive obligation to pay for it. All the costs have been directly attributed to one of the functional categories of resources expended in the Statement of Financial Activities.

Direct charitable expenditure includes all expenditure incurred by the charity in a direct pursuit of its objectives.

The charity is not registered for VAT and hence expenditures are shown gross, VAT inclusive.

h) Governance and administration costs

These represent costs incurred by finance, human resources, legal and professional fees attributable to the management of the Church’s assets and in compliance with constitutional and statutory requirements.

Governance and administration costs include expenditure that are not directly attributable to the charitable activities and cannot be allocated to direct charitable expenditure with certainty.

i) Capitalisation and depreciation of tangible fixed assets

All tangible fixed assets costing more than five thousand pounds (£5,000) are capitalised.

The charity owns outright the freehold land and building situated at 78 Edmund Street, London, SE5 7NR. The cost of other tangible fixed assets is written off/depreciated by equal instalments over the expected useful lives as follows:

Furniture, fixture, and fittings 4 years Building 40 years

Tangible fixed assets are depreciated in straight line depreciation method over their useful life.

Except for the freehold land and building, the Charity did not own any other tangible assets on 31 October 2022.

The SORP FRS102 recommends that all buildings should be depreciated for their economic life. For this reason, the charity has depreciated the building costs based on 2.5%.

j) Pension scheme

The Charity became a member of NEST for pension automatic-enrolment effective from 1 April 2016. All eligible employees are automatically enrolled to NEST unless they specifically request to opt-out from the scheme. Employee contributions are deducted at the appropriate rate from each employee and paid to NEST monthly together with the appropriate employer contribution.

Page 14

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2023

k) Operating leases

Operating lease rentals are accounted for over the term of the lease.

3. Donations

ns
Committed giving:
(Membership fees+Tithe)
Operating community church activities
(Wedding, Baptism, community projects)
Donations (including collections)		 2023
Total
Unrestricted
£
69,665
7,047
174,129
250,841		 2022
Total
Unrestricted
£
68,336
11,565
184,244
264,145

4. Expenditure on core charitable activities – community church

Regular church services
(Sunday services and other special events)
Reconciliatory and outreach services
Sunday school for
children
Educational support
Youth services
Total		 2023
Total
Unrestricted
£
53,691
14,045
7,230
8,469
5,991
89,426		 2022
Total
unrestricted
£
38,690
11,075
4,591
5,198
3,983
63,537

Page 15

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2023

5. Governance and administration costs

Staff costs - administration
Church property cost for
administration
Legal and other professional fees
Other administration overheads
6. Staff costs and Numbers
Gross salaries and wages
Social Security costs
Pension costs
The average number of employees during
Senior Church officers
Assistant Church administrators		 2023
Total
Unrestricted
£
3,511
2,479
1,000
11,874
18,864
2023
Total
Unrestricted
£
67,906
552
1,768
70,226
the year are:
2023
2
1.5
3.5		 2022
Total
unrestricted
£
2,769
1,215
7,200
9,198
20,382
2022
Total
unrestricted
£
53,275
502
1,598
55,375
2022
2
1.5
3.5

Page 16

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2023

7. Trustees’ expenses and remuneration

During the year ended on 31 October 2023, the trustees do not receive any kind of payment from the Charity.

8. Depreciation

8. Depreciation
Depreciation charge
9. Debtors
Gift aid tax recoverable
Other debtors
Total debtors due within one year		 2023
£
7,603
2023
£
31,500
-
31,500		 2022
£
7,603
2022
£
20,000
1,000
21,000

The £31,500 Debtor balance was the Gift aid tax recoverable from HMRC of the years from 2018 to 2023 (2022: balance was £20,000).

10. Creditors

Trade creditors
Other creditors
Total creditors due within one year		 2023
£
1,000
861
1,861		 2022
£
-
4,908
4,908

Page 17

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2023

11. Restricted funds

There was no incoming and outgoing from restricted fund. However, the balance is capital grant received for property costs which is already expended in previous years.

Community Fund: Capital funding
12. Unrestricted fund
Opening balance November 1, 2022
Add: Net surplus for the year
Closing balance before transfers and adjustment
Less: Transfer to designated fund
Less: adjustment depreciation
Closing balance as at 31 Oct 2023		 2023
Balance
£241,820
2023
Total
Unrestricted
£
580,683
176,539
757,222
(600,000)
-
157,222		 2023
Balance
£241,820
2023
Total
Unrestricted
£
580,683
176,539
757,222
(600,000)
-
157,222		 2022
Balance
£241,820
2022
Total
Unrestricted
£
372,855
207,828		 2022
Balance
£241,820
2022
Total
Unrestricted
£
372,855
207,828
757,222
(600,000)
-
157,222		 580,683
-
-
580,683

The unrestricted fund in year 2023 is increased by £176,539 which is the net operating surplus for the year (2022: increase by £207,828)

13. Designated fund

The designated fund for year 2023 is the same as 2022 and it comprises part of the building cost and cash.

Tangible assets Balance at
01-Nov-22
£1,019,899		 Cash
surplus
-		 Balance at
Additions
31-Oct-23
£600,000
£1,619,899
£1,019,899 - £600,000
£1,619,899

Page 18

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2023

14. Analysis of net assets between funds

Restricted funds
Designated funds
Unrestricted funds
Restricted funds
Designated funds
Unrestricted funds		 2023
Tangible
Net current
assets
assets
Total
£
£
£
241,820
-
241,820
161,136
1,458,763
1,619,899
-
157,222
157,222
402,956
1,615,985
2,018,941
2022
Tangible
Net current
assets
assets
Total
£
£
£
241,820
-
241,820
168,739
851,160
1,019,899
580,683
580,683
410,559
1,431,843
1,842,402

15. Tangible Fixed assets

Tangible assets – property
Opening balance Nov 1,2022
Additions
Depreciation for the year
Cumulated depreciation adjusted
Net book balance as at 31 October 2023

A depreciation charge for 2023 was £7,603 (2022: £7,603).

.

Page 19

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2023

16. Cash on hand at bank
Account Number 2023 2022
****8630 ****0642 ****6572 ****2383 Total Total
£ £ £ £ £ £
Opening balance 01/11/22 874,376 91,697 149,325 300,353 1,415,751 1,200,949
Incoming cash 226,640 2,829 46,909 3,028 279,406 292,368
Ougoing cash (81,717) - (32,245) (113,962) (77,566)
Transfer treasury deposit - - (155,000) (300,000) (455,000) -
Closing balance 31/10/23 1,019,299 94,526 8,989 3,381 1,126,195 1,415,751

17. Allocation of property and staff costs to core activities

The property and the staff have contributed towards several activities of the charity. Hence it is important to allocate the costs to appropriate activities and the following proportion has been made. The trustees believe that to the best of their knowledge the basis shown below is the best estimate they can come up given that it was impractical and costly to track the contribution of each cost categories to the activities.

----- Start of picture text -----
Staff Property
costs costs
Activities:
Core church service 60% 45%
Reconciliation and outreach 20% -
Sunday school 5% 15%
Education support 5% 20%
Youth service 5% 10%
Governance and administration 5% 10%
100% 100%
----- End of picture text -----

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