OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator. This document is also available as Markdown.

← Eritrean Orthodox Christian (St Michael's) Community Church

2024-10-31-accounts

Registered Charity No: 1044068

ERITREAN ORTHODOX CHRISTIAN

(ST. MICHAEL’S) COMMUNITY CHURCH

ANNUAL REPORT

AND ACCOUNTS

FOR THE YEAR ENDED 31 OCTOBER 2024

Page 1

CONTENTS

CHARITY INFORMATION ……………………………………………………………….………………………………….…. 3 TRUSTEES’ REPORT ..................................................................................................................... 4 Name and Objects ....................................................................................................................... 4 Appointment and induction of Trustees ..................................................................................... 4 Change in Governance and Trustee Leadership ......................................................................... 5 Organisation ................................................................................................................................ 5 2024 Activities and Finance ........................................................................................................ 5 Plans for 2024/2025 .................................................................................................................... 6 STATUTORY INFORMATION ........................................................................................................ 7 Members of the Board of Trustees ............................................................................................. 7 Statement of Financial Responsibilities ...................................................................................... 7 Statement of Financial Activities………………………………………………………………………………………. 8 - 9 Charity Balance Sheet…………………………………………………………………………………………………………. 10 Notes forming part of the Financial Statements……………………………………………………………….. 12-19

Page 2

Members of the Board of Trustees as of 31 October 2024

Abrahaley Mebrahtu (Chairman) Dr Semereab Tewolde (Company Secretary) Solomon Russom (Treasurer) Futsum Kahsa Berhane Ghebrealfa Yacob Haile Secretary Dr Semereab 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 3

TRUSTEES’ REPORT

The Board of Trustees presents its report with the unaudited accounts of the Eritrean Orthodox Christian (St Michael’s) Community Church for the year ended 31 October 2024. 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 from 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 7.

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 set of criteria, their willingness and fitness for purpose.

The Management Committee is responsible for identifying and proposing potential new Trustees, providing induction and training as appropriate to newly elected Trustees. The officers of the charity are responsible for assessing the skills offered by the Board and identifying areas that need strengthening

Page 4

TRUSTEES’ REPORT

Changes in Governance and Trustee Leadership

The Trustees regret to report the death of Mr. Abrahaley Mebrahtu, Chairman of the Board of Trustees, who passed away on 8 July 2025, shortly after the financial year-end. As at 31 October 2024, he was still actively serving in his role as Chair.

To ensure continuity, the Board appointed Mr. Solomon Russom as Acting Chairman. The Church’s formal trustee election process, including the appointment of a permanent Chair, is scheduled to take place before 31 October 2025.

The Trustees record their deep gratitude for Mr. Mebrahtu’s leadership and many years of dedicated service to the Eritrean Orthodox Christian (St Michael’s) Community Church.

Organisation

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

The day-to-day running of the charity is conducted by the Management Committee, which reports monthly to the Trustees on administration and activities. 2024 Activities and Finance

2024 Activities and Finance

Church Services

The year marked a complete restoration of routine church services and activities following the COVID-19 pandemic. Members and attendants were able to freely gather, worship, and socialize. Consistent Sunday services were provided, including christenings, weddings, and other ceremonies.

Monthly liturgy services for St Michael, St Abune Aregawi, and St Mary were conducted. Especially the Assumption of St Mary (Tsome Felseta) was celebrated over sixteen consecutive days in August 2024, with morning and afternoon services. These services were well attended and spiritually significant for the congregation, coinciding with the end of the Geez calendar year and the transition into the New Year on 12 September (St John’s Day).

The Church also organized youth gatherings and outings—visited a seaside location across the UK. The events were well-received and helped strengthen fellowship, connection, and collaboration among youth members.

Changes in Management Committee Members

The previous Management Committee completed its three-year term on 31 October 2023. New members were elected in August 2023 by vote of the congregation, with a two-month transition period allowing effective handover. The process was conducted openly in line with the Church’s constitution and policies. Handover was, therefore, completed in a timely fashion and the new Management Committee took office on 1 November 2023 .

Staff and Volunteers

The Church employs both full-time and volunteer staff members but relies heavily on the volunteers to deliver the routine services and provide support. Volunteers assist with welcoming, helping the elderly and children during Sunday services, arranging mid-week meetings, and providing outreach and pastoral care to the elderly, disabled, and distressed .

Page 5

Training and Development

Structured deaconship training was delivered during the year. Out of twelve trainees, four were ordained as deacons with the blessing of a visiting bishop. Three of the ordained were UK-born members who had attended the Church since childhood.

Networks and Collaborations

The Church maintained strong links with Southwark Council, attending seminars and conferences, and contributing to community projects. It also continued ecumenical relationships with other Eritrean Orthodox churches in the UK and with the Oriental Orthodox Churches more widely.

Moving to a Dream Church

Progress was made towards the Church’s strategic goal of acquiring a permanent place of worship in South London. A potential site near Streatham Common was explored but purchase negotiations did not proceed.

Financial Performance

In 2024 the charity achieved a net operating income of £202,636 (2023: £176,553), an increase of 14.8%. This was mainly due to growth in membership, more regular attendance, and the introduction of card donation facilities.

Net assets surpassed £2.2 million, representing 10% increase.

The newly elected Management Committee has prioritized strengthening governance, expanding digital donation facilities, and enhancing fundraising programs. The Trustees are confident these measures will increase income by 15% or more in the coming year .

Plans for 2024/2025

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

Page 6

STATUTORY INFORMATION

Members of the Board of Trustees

Members of the Board of Trustees who served as directors during 2024 were:

Abrahaley Mebrahtu Dr. Semereab Tewolde Solomon Russom Yacob Haile Futsum Kahsa 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

Solomon Russom

Acting Chairman of the Trustees

30 August 2025

Page 7

ERITREAN ORTHODOX CHRISTIAN (ST MICHAEL'S) COMMUNITY CHURCH

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 OCTOBER 2024

Notes Unrestricted
Fund
£		 Unrestricted
Fund
£		 Designated
Fund
£		 Restricted
Fund
£		 TOTAL
2024
£		 TOTAL
2024
£		 TOTAL
2023
£		 TOTAL
2023
£
Income from:
Donations 3 261,583 - - 261,583 250,841
Other trading activities: - -
Sale of books & merchandise 8,330 - - 8,330 16,431
Rental income 20,731 - - 20,731 15,596
Interest Income 18,611 - - 18,611 8,179
Other Income - - - - 639
Total income 309,255 - - 309,255 291,686
Expenditure on:
Charitable activities :
Cost of charitable activities 4 90,178 - - 90,178 89,426
Tradingexpenses - - 6,857
Governance and administration 5 16,441 - - 16,441 18,864
Total expenditure 106,619 **- ** **- ** 106,619 115,147
Net income for theyear 202,636 - - 202,636 176,539
Reconciliation of funds:
Total funds brought forward 157,222 1,619,899 241,820 2,018,941 1,842,402
Net movement in funds 202,636 - - 202,636 176,539
Transfer of funds - -
Total funds carried forward 359,858 1,619,899 241,820 2,221,577 2,018,941

Page 8

ERITREAN ORTHODOX CHRISTIAN (ST MICHAEL'S) COMMUNITY CHURCH

STATEMENT OF FINANCIAL ACTIVITIES (Comparative)

FOR THE YEAR ENDED 31 OCTOBER 2023

Notes Unrestricted
Fund
£		 Designated
Fund
£		 Restricted
Fund
£		 TOTAL
2023
£		 TOTAL
2022
£
Income from:
Donations 3 250,841 - - 250,841 264,145
Other trading activities: -
Sale of books & merchandise 16,431 - - 16,431 8,005
Rental income 15,596 - - 15,596 19,396
Interest Income 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
Tradingexpenses 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 theyear 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 9

BALANCE SHEET AS AT 31 OCTOBER 2024

BALANCE SHEET
AS AT 31 OCTOBER 2024
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		 2024
£
£
398,673
398,673
124,812
1,485,000
217,012
1,826,804
(3,900)
1,822,904
2,221,577
359,858
1,619,899
241,820
2,221,577		 2023
£
124,812
1,485,000
217,012
1,826,804
(3,900)		 £
31,500
460,151
1,126,195		 £
402,956
402,956
1,822,904
2,221,577
359,858
1,619,899
241,820
2,221,577
1,615,985
2,018,941
1,617,846
(1,861)
157,222
1,619,899
241,820
2,018,941

Page 10

For the year ending 2024 the charity has taken advantage of the audit exemption conferred by section 477 of the Charity Act 2011. 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 __August 2024 and signed on their behalf by:

Solomon Russom (Treasurer)

Date: 30 August 2024

Page 11

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED ON 31 OCTOBER 2024

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 2024.

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 the UK and the 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 buildings 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 12

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024

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 until end of Oct-2023. However, for the year-end to Oct-2024 and going forward, interest on Treasury account is accrued, as interest rate on the deposit is preapproved, agreed, and certain to be received. The accrued is checked against actual receipt and necessary adjustment made for the year-end.

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 2024.

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 13

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024

k) Operating leases

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

3. Donations

Committed giving:
(Membership fees+Tithe)
Operating community church activities
(Wedding, Baptism, community projects)
Donations (including collections)		 2024
Total
Unrestricted
£
62,737
14,392
184,454
261,583		 2023
Total
Unrestricted
£
69,665
7,047
174,129		 2023
Total
Unrestricted
£
69,665
7,047
174,129
250,841

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		 2024
Total
Unrestricted
£
54,540
15,105
6,844
7,867
5,822
90,178		 2023
Total
unrestricted
£
53,691
14,045
7,230
8,469
5,991
89,426

Page 14

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024

5. Governance and administration costs

rnance and administration costs
Staff costs - administration
Church property cost for
administration
Legal and other professional fees
Other administration overheads
costs and Numbers
Gross salaries and wages
Social Security costs
Pension costs		 2024
Total
Unrestricted
£
3,776
2,045
10,620
16,441
2024
Total
Unrestricted
£
73,008
621
1,898
75,527		 2024
Total
Unrestricted
£
3,776
2,045
10,620		 2023
Total
unrestricted
£
3,511
2,479
1,000
11,874
18,864
2023
Total
unrestricted
£
67,906
552
1,768
70,226		 2023
Total
unrestricted
£
3,511
2,479
1,000
11,874
16,441 18,864

6. Staff costs and Numbers

The average number of employees during the year are:
2024
Senior Church officers
2
Assistant Church administrators
2
4		 2023
2
1.5
3.5

Page 15

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024

7. Trustees’ expenses and remuneration

During the year ended on 31 October 2024, the trustees do not receive any kind of payment from the Charity.

8. Depreciation

8. Depreciation
2024 2023
£ £
Depreciation charge 8,433 7,603

9. Debtors

Gift aid tax recoverable
Accrued interest income
PAYE balance
Pension (Er cost)
Other debtors (Loan to Debresina Mariyam)
Total debtors due within one year		 2024
£
30,400

8,763
736
9,913
37,500
87,312		 2023
£
31,500
-
-
31,500
Due after one year (Loan to Debresina)
Total debtors		 37,500
124,812		 -
31,500

The £30,400 debtor balance was an estimated of the Gift aid tax recoverable from HMRC for the years 2024, (2023: balance was £31,500). Short term loan of £75,000 was advanced to Debresina Mariyam(Newcaslte) in Dec2023. They paid back £37,500 after the year-end ( i.e.£25,000 in Dec-2024 and £12,500 in Aug-2025). The balance £37,500 is expected to be paid back in 2026 and 2027.

The accrued interest income is interest income earned and received after the year-end.

Page 16

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024

10. Creditors

reditors
Trade creditors
Accruals
Net Wages
Total creditors due within one year		 2024
£
1,400
1,500
1,000
3,900		 2023
£
1,000
(749)
750
860
-
1,861

11. Restricted funds

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

Community Fund: Capital funding
12. Unrestricted fund
Opening balance November 1, 2023
Add: Net surplus for the year
Closing balance before transfers and adjustments
Less: Transfer to designated fund
Less: adjustment depreciation
Closing balance as at 31 Oct 2024		 2024
Balance
241,820
2024
Total
Unrestricted
£
157,222
202,636
359,858
-
-
359,858		 2024
Balance
241,820
2024
Total
Unrestricted
£
157,222
202,636
359,858
-
-
359,858		 2023
Balance
£241,820
2023
Total
Unrestricted
£
580,683
176,539		 2023
Balance
£241,820
2023
Total
Unrestricted
£
580,683
176,539
359,858
-
-		 757,222
(600,000)
-
359,858 157,222

Page 17

The unrestricted fund in year 2024 is increased by £202,616 which is the net operating surplus (2023: increased by£176,539)

13. Designated fund

The designated fund for the year 2024 is the same as 2023, and it comprises part of the building cost and cash.

Designated fund Balance at
01-Nov-23
£1,619,899		 Cash
surplus
-		 Balance at
Additions
31-Oct-24
0
1,619,899		 Balance at
Additions
31-Oct-24
0
1,619,899
£1,619,899 - 0 1,619,899

14. Analysis of net assets between funds

Restricted funds
Designated funds
Unrestricted funds		 2024
Tangible
Net current
assets
assets
Total
£
£
£
241,820
-
241,820
156,853
1,463,046
1,619,899
-
359,858
359,858
398,673
1,822,904
2,221,577
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

Page 18

15. Tangible Fixed Assets

Tangible assets
Opening balance Nov 1, 2023
Additions
Depreciation for the year
Cumulated depreciation adjusted
Net book balance as at 31 October 2024		 2024
Total
£
456,177
4,150
(8,433)
(53,221)
398,673		 2023
Total
£
456,177
-
(7,603)
(45,618)
402,956

A depreciation charge for 2024 was £8,433 (2023: £7,603).

1. Cash on hand at bank

2024 2023

Opening balance as of 1st November,
2023		 A/C
01388630		 A/C
01370642		 A/C
21586572		 A/C
21642383		 Total Total
£1,019,299 £94,526 £8,989 £3,381 £1,126,195 £1,415,751
Incomingcash £272,981 £3,111 £1,367,024 £309,573 £1,952,689 £279,406
Outgoingcash (£1,192,305) - (£184,567) (£1,376,872) (£113,962)
Transfer treasurydeposit - - (1,185,000) (£300,000) (1,485,000) (£455,000)
Closing balance as of 31 October 2024 £99,975 £97,637 £6,446 £12,954 £217,012 £1,126,195

2. 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.

Staff
costs		 Property
costs
Activities:
Core church service 60% 45%
Reconciliation and outreach 20% -
Sundayschool 5% 15%
Education support 5% 20%
Youth service 5% 10%
Governance and administration 5% 10%
100% 100%

Page 19