**Registered Charity No: 1044068** 

## **ERITREAN ORTHODOX CHRISTIAN (ST MICHAEL'S) COMMUNITY CHURCH** 

**ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 OCTOBER 2025** 

Annual Report and Accounts 2025 | Charity No. 1044068 | Page  1 



**Contents** 

|**Contents**||
|---|---|
|**Charity Information**|**3**|
|**Trustees' Annual Report**|**4**|
|Objects and Public Benefit|4|
|Structure, Governance and Management|4|
|Activities, Achievements and Performance|4|
|Financial Review|5|
|Reserves Policy|5|
|Risk Management and Internal Controls|5|
|Events After the Reporting Date and Governance Transition|6|
|Future Plans|6|
|Statement of Trustees' Responsibilities|7|
|**Independent Examiner's Report**|**8**|
|**Statement of Financial Activities**|**9**|
|**Statement of Financial Activities - Comparative**|**10**|
|**Balance Sheet**|**11**|
|**Notes to the Financial Statements**|**12-18**|



Annual Report and Accounts 2025 | Charity No. 1044068 | Page  2 



**Charity Information** 

|**Legal name:**|**Eritrean Orthodox Christian (St Michael's) Community Church**|
|---|---|
|**Charity number:**|**1044068**|
|**Registered in:**|**England and Wales**|
|**Charity structure:**|Registered unincorporated charity|
|**Governing**<br>**document:**|Constitution adopted 6 November 1994.|
|**Registered office:**|78 Edmund Street, London SE5 7NR|
|**Trustees serving**<br>**during the year:**|Abrahaley Mebrahtu (Chairman until 8 July 2025); Solomon Russom (Treasurer and<br>Acting Chairman); Dr Semereab Tewolde (Secretary); Futsum Kahsa (Safeguarding);<br>Berhane GhebreAlfa; Yacob Haile.|
|**Secretary:**|Dr Semereab Tewolde|
|**Trustees serving**<br>**after the year end**<br>**and at the date of**<br>**approval:**|Nesereab Berhane Haile (Acting Chairman and Secretary); Abiel T Woldu (Treasurer);<br>Helen Mehari (Safeguarding); Solomon Y Nere (Project Lead); Nazriet Teclu<br>(Fundraising Lead); Elsa Haile Ghebremariam; Yonas Mengsteab Tecle.|
|**Bankers:**|HSBC Bank PLC, Harry Weston Road, Binley, Coventry CV3 2TQ; Lloyds Bank, 1<br>Silver Street, Enfield, Middlesex EN1 3EE|



Annual Report and Accounts 2025 | Charity No. 1044068 | Page  3 



## **Trustees' Annual Report** 

The  trustees  present  their  annual  report  together  with  the  financial  statements  of  Eritrean  Orthodox  Christian (St  Michael's)  Community  Church  for  the  year  ended  31  October  2025.  The  report  explains  the  charity's objects,  public  benefit,  activities,  achievements,  governance  arrangements,  financial  position,  reserves  policy and future plans. 

The  financial  statements  have  been  prepared  under  the  historical  cost  convention  and  on  the  accruals  basis,  in accordance  with  Accounting  and  Reporting  by  Charities:  Statement  of  Recommended  Practice  (SORP) applicable to charities preparing their accounts in accordance with FRS 102. 

## **Objects and Public Benefit** 

The  charity's  objects  are  to  advance  the  Christian  religion,  and  in  particular  the  Orthodox  faith,  by  organising, providing  and  developing  church  services  and  ancillary  religious  activities;  to  advance  public  education  along Orthodox  Christian  lines,  particularly  in  respect  of  the  Eritrean  language  and  culture;  and  to  relieve  poverty  and distress arising from poverty, sickness, bereavement or imprisonment of a family member. 

The  trustees  confirm  that  they  have  had  regard  to  the  Charity  Commission's  public  benefit  guidance  when exercising  their  duties  and  planning  the  charity's  activities.  The  trustees  consider  that  the  Church's  worship, pastoral  support,  religious  education,  community  fellowship  and  support  to  families  and  vulnerable  members provide clear public benefit to the Eritrean Orthodox Christian community and the wider public. 

## **Structure, Governance and Management** 

The  charity  is  governed  in  accordance  with  its  constitution  by  its  charity  trustees,  who  currently  operate collectively  as  the  Board  of  Trustees.  The  trustees  have  ultimate  responsibility  for  the  charity's  governance, strategic  oversight,  financial  stewardship  and  compliance  with  charity  law.  They  are  supported  in  day-to-day administration  and  service  delivery  by  the  Management  Committee,  clergy,  employees,  volunteers  and relevant sub-committees. 

Trustees  are  appointed  or  elected  in  accordance  with  the  charity's  constitution.  The  charity  supports  newly appointed  trustees  through  appropriate  induction  and  training,  and  any  trustee  vacancies  or  additional appointments are addressed through the procedures set out in the constitution. 

During  the  year,  the  trustees  continued  to  oversee  the  Church's  worship,  pastoral,  educational  and community  activities,  and  to  monitor  financial  records,  Gift  Aid,  bank  balances,  payroll,  pension  and operational  matters.  Day-to-day  administration  and  operational  activities  are  carried  out  by  the  Management Committee,  together  with  the  clergy,  staff  and  volunteers,  under  the  overall  oversight  of  the  Board  of Trustees.  The  Management  Committee  reports  to  the  trustees  on  its  activities,  and  the  trustees  retain collective  responsibility  for  the  charity’s  governance,  strategic  direction,  financial  stewardship  and  compliance with charity law. 

## **Activities, Achievements and Performance** 

## _**Worship, Liturgy and Pastoral Care**_ 

The  Church  continued  to  provide  routine  worship,  liturgy,  pastoral  care  and  community  fellowship  throughout the  year.  Members  and  attendees  gathered  for  Sunday  worship,  midweek  services,  monthly  liturgy  services  for St  Michael,  St  Abune  Aregawi,  and  St  Mary,  and  services  connected  with  christenings,  weddings,  memorial services, feast days, and other Orthodox Christian observances. 

Pastoral support was provided to members and their families, including bereavement, family events, spiritual care, and community cohesion. 

## _**Community, Education, Youth and Volunteers**_ 

The Church continued to support the Eritrean Orthodox Christian community in London and beyond through worship, faith formation, language, culture, family support, youth support and fellowship. 

Volunteers remained central to the delivery of services, welcoming, administration, collection handling, event support and assistance to elderly or vulnerable members. The Church employs staff and engages freelance service providers but relies heavily on volunteers to deliver services and provide support. 

Structured  deaconship  training  continued  during  the  year.  The  Church  expects  to  graduate  additional deacons in 2026. 

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## _**Governance, Management and Partnerships**_ 

The  current  Management  Committee  members,  elected  by  the  congregation  in  August  2024,  continued their  service  during  the  year.  The  Church  held  a  formal  Sunday  School  committee  election  with  participation and  monitoring  by  designated  members  of  the  Sub-Diocese  of  the  Eritrean  Orthodox  Church  UK.  Following a  formal  handover,  the  new  Sunday  School  committee  resumed  routine  activities.  The  Sunday  School  is  an important  part  of  the  Church  and  provides  regular  faith-based  lessons  and  instruction  for  young  people, supporting the charity's public education object. 

The  Church  maintained  links  with  Southwark  Council,  attended  seminars  and  conferences,  and  continued ecumenical  relationships  with  other  Eritrean  Orthodox  churches  in  the  UK  and  overseas.  The  trustees  and Management  Committee  also  continued  to  consider  long-term  property  options  for  the  congregation's  goal of securing a suitable permanent place of worship in South London. 

The  Church  continued  to  improve  accounting  records,  year-end  working  papers,  Xero  reporting,  bank reconciliation,  payroll  review,  Gift  Aid  administration  and  evidence  preparation  for  external  scrutiny.  The trustees  recognise  the  importance  of  proper  financial  stewardship,  internal  controls  and  documented decision-making in line with charity law and good governance practice. 

## **Financial Review** 

Total  income  for  the  year  was  £368,337  (2024:  £309,255),  an  increase  of  £59,082  or  19.1%.  Donations were  £323,463  (2024:  £261,583).  Income  also  included  book  and  merchandise  sales,  rental  income  and interest income. 

Total  expenditure  was  £134,783  (2024:  £106,619).  Expenditure  included  £115,027  on  core  charitable activities,  £10,948  on  governance  and  administration,  and  £8,808  on  depreciation.  Net  income  for  the year was £233,554 (2024: £202,636). 

At  31  October  2025,  total  funds  were  £2,461,111  (2024  restated:  £2,227,557).  The  2024  comparative funds  and  balance  sheet  have  been  restated  for  historic  pension  and  payroll  opening-balance  corrections totalling £5,980, recognised in unrestricted funds. The adjustment is explained in note 17. 

The  charity  held  tangible  fixed  assets  of  £391,364,  debtors  of  £132,401  and  cash  at  bank  and  in  hand  of £1,940,350.  Creditors  due  within  one  year  were  £3,004.  Debtors  included  Gift  Aid  tax  recoverable  of £32,391,  pension  recoverable  of  £21,249,  other  debtors  and  control  accounts  of  £53,762,  and  £25,000 due  after  more  than  one  year  from  Debresina  Mariyam  Eritrean  Orthodox  Christian  Community  Church, Newcastle, UK. 

## **Reserves Policy** 

The  trustees  define  free  reserves  as  unrestricted  funds  that  are  freely  available  for  the  general  purposes  of the  charity,  after  excluding  restricted  funds,  designated  funds,  tangible  fixed  assets  used  by  the  charity  and any other funds not freely available for general use. 

The  trustees  consider  that  the  charity  should  maintain  a  hard  minimum  operating  reserve  of  approximately £60,000  and  a  target  free-reserves  range  of  approximately  £120,000  to  £150,000.  This  level  is  considered appropriate,  having  regard  to  regular  worship  and  pastoral  activity,  staff  costs,  property  costs,  insurance, utilities, professional fees, Gift Aid timing and other working capital requirements. 

Unrestricted  free  reserves  at  31  October  2025  were  £60,000  after  the  trustees'  transfer  of  £539,392  to  the designated  property  fund.  This  was  equal  to  the  trustees'  hard  minimum  operating  reserve  but  below  the target  range  of  £120,000  to  £150,000.  The  trustees  will  monitor  the  position  and  seek  to  rebuild  free reserves  towards  the  target  through  future  operating  surpluses.  The  charity  also  held  designated  funds  of £2,159,291  for  long-term  property  and  strategic  development  purposes,  and  restricted  funds  of  £241,820  for capital  funding.  The  reserves  policy  and  the  continuing  level  of  designation  will  be  reviewed  at  least annually as part of budgeting, financial review and approval of the annual accounts. 

## **Risk Management and Internal Controls** 

The  trustees  recognise  that  the  charity's  principal  risks  include  safeguarding,  cash  handling,  banking  and cyber  risk,  restricted  fund  control,  Gift  Aid  compliance,  payroll  and  pension  compliance,  property maintenance,  recoverability  of  debtor  balances,  trustee  transition  and  continuity  of  services.  The  trustees seek to manage these risks through the following controls: 

Annual Report and Accounts 2025 | Charity No. 1044068 | Page  5 



   - Maintain regular bank reconciliations and trustee review of bank balances, including unpresented cheques. The trustees and Management Committee reviewed the accumulated £503 cash reconciliation difference and its causes and approved its treatment in the accounts. Stronger, timely cashbook reconciliation procedures are being implemented. 

   - Continue dual authorisation for payments where bank functionality permits. 

   - Keep Gift Aid declarations, claim schedules, HMRC payment records and correspondence complete, timely and secure. 

   - Review payroll, PAYE, National Insurance and pension records regularly. 

   - Maintain restricted and designated fund records. 

   - Record conflicts of interest and trustee decisions in minutes. 

   - Review insurance, property risks, safeguarding policies and finance controls annually. 

- Maintain proportionate data-protection and information-security controls over membership, donor, Gift Aid, safeguarding and financial records, including appropriate access controls and secure record retention. 

## **Events After the Reporting Date and Governance Transition** 

The  extended  term  of  the  previous  trustees  ended  on  31  October  2025.  New  trustees  commenced  their terms  on  1  November  2025  following  the  trustee  transition  and  appointment  process.  The  handover  was supported  by  formal  trustee  meetings  and  the  transfer  of  relevant  records,  financial  matters  and governance actions to the new Board. 

The  trustees  record  the  passing  of  Mr  Abrahaley  Mebrahtu,  Chairman  of  the  Board  of  Trustees,  on  8  July 2025.  The  Board  records  its  gratitude  for  his  leadership  and  many  years  of  dedicated  service.  To  ensure continuity, Mr Solomon Russom served as Acting Chairman. 

Following  the  trustee  transition,  the  Church  continued  to  progress  Gift  Aid  administration,  HMRC  Charities Online  access,  NEST  pension  access  and  year-end  financial  control  matters.  Debresina  Mariyam  repaid £17,500  on  27  July  2026,  reducing  the  outstanding  loan  balance  from  £25,000  to  £7,500.  The  remaining balance  is  expected  to  be  repaid  by  31  October  2026,  if  practicable,  and  in  any  event  by  31  December 2026.  Following  the  Board  meeting  on  2  August  2026,  Elsa  Haile  Gebremariam  and  Yonas  Mengsteab Tecle, formally accepted appointment as trustees, bringing the Board to seven trustees. 

During 2026, the trustees also continued the charity's long-term property strategy and participated in a competitive process concerning St Andrew's Church in South London. An offer was submitted after consideration of affordability and professional legal, financial and property advice. At the date these financial statements were approved, the charity had not been notified that it was the preferred bidder and no binding acquisition agreement had been entered into. Accordingly, no adjustment has been made to the financial statements at 31 October 2025; see note 19. 

## **Future Plans** 

●  Continue regular worship, liturgical and pastoral activities. 

- Find a larger, suitable venue or church to accommodate the service and congregation's requirements. 

- Reorganise fundraising teams to support the long-term aim of purchasing a suitable church or property. 

- Strengthen finance governance, monthly and quarterly reporting, Xero controls, Gift Aid records, payroll and pension controls. 

- Develop clearer budgeting, reserves monitoring and quarterly trustee finance packs. 

- Strengthen safeguarding, volunteer coordination, youth, education and community support activities. 

- Improve member records, donor records, data protection, digital systems and governance documentation. 

- Progress collection of outstanding debtor balances, including the Debresina Mariyam loan balance. 

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## **Statement of Trustees' Responsibilities** 

Charity law requires the trustees to prepare accounts for each financial year that give a true and fair view of the charity's state of affairs at the end of the financial year and of its incoming resources and the application of those resources for that year. 

The trustees are required to: 

   - Select suitable accounting policies and apply them consistently. 

   - Make judgements and estimates that are reasonable and prudent. 

   - State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the accounts. 

   - Prepare the accounts on a going concern basis. 

   - Keep accounting records that disclose with reasonable accuracy the financial position of the charity. 

   - Safeguard the assets of the charity and take reasonable steps for the prevention and detection of fraud and other irregularities. 

- Approved by the trustees and signed on their behalf by: 

|**Name**|Nesereab Berhane Haile|
|---|---|
|**Position**|ActingChairman and Secretary|
|**Signature**|Nesereab B. Haile|
|**Date**|18 August 2026|



Annual Report and Accounts 2025 | Charity No. 1044068 | Page  7 



## **Independent examiner's report on the accounts** 

## **Section A:   Independent Examiner's Report** 

|**Report to the trustees of**|**Eritrean Orthodox Christian (St Michael's) Community Church**|
|---|---|
|**On accounts for theyear ended**|31 October 2025|
|**Charity no**|1044068|
|**Set out on pages**|9 to 18|



## **Responsibilities and basis of report** 

I report to the trustees on my examination of the accounts of the above charity (“the Charity”) for the year ended 31 October 2025. 

As the charity's trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the Act”). 

I report in respect of my examination of the Charity's accounts carried out under section 145 of the 2011 Act, and in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act. 

## **Independent examiner's statement** 

The charity's gross income exceeded £250,000, and I am qualified to undertake the examination by being a qualified member of the Chartered Institute of Management Accountants (CIMA). 

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which gave me cause to believe that in any material respect: 

- The accounting records were not kept in accordance with section 130 of the Charities Act; or 

- The accounts did not accord with the accounting records; or 

- The accounts did not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair’ view, which is not a matter considered as part of an independent examination. 

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. 

|**Signed**|Ian Robertson, CFA, ACMA|
|---|---|
|**Date**|18.08.2026|
|**Name**|Ian Robertson, T & R Partners|
|**Relevant professional qualification(s) or body**|Chartered Institute of Management Accountants<br>(CIMA)|
|**Address**|195-197 Wood Street<br>London, E17 3PA|



Annual Report and Accounts 2025 | Charity No. 1044068 | Page  8 



## **Statement of Financial Activities** 

## **For the year ended 31 October 2025** 

|||**Unrestricted**|**Unrestricted**|**Unrestricted**|**Unrestricted**|**Designated**|**Designated**|**Restricted**|**Restricted**|||**TOTAL**|**TOTAL**||**TOTAL**|**TOTAL**|**TOTAL**|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
||||**Fund**||||**Fund**||**Fund**|||**2025**||**2024**|**(restated)**|||
||Notes||**£**||||**£**||**£**|||**£**||||**£**||
|**Income from:**||||||||||||||||||
|Donations|3||323,463||||-||-|||323,463||||261,583||
|Other tradingactivities:||||||||||||-||||-||
|Sale of books & merchandise|||5,750||||-||-|||5,750||||8,330||
|Rental income|||19,200||||-||-|||19,200||||20,731||
|Interest income|||19,924||||-||-|||19,924||||18,611||
|Other income|||-||||-||-|||-||||-||
|**Total income**|||**368,337**||||**-**||**-**|||**368,337**||||**309,255**||
|||||||||||||||||||
|**Expenditure on:**||||||||||||||||||
|**Charitable activities:**||||||||||||||||||
|Cost of charitable activities|4||115,027||||-||-|||115,027||||90,178||
|Governance and administration|5||10,948||||-||-|||10,948||||8,008||
|Depreciation charge|8||8,808||||-||-|||8,808||||8,433||
|Total expenditure|||**134,783**||||**-**||**-**|||**134,783**||||**106,619**||
|**Net income for theyear**|||**233,554**||||**-**||**-**|||**233,554**||||**202,636**||
|||||||||||||||||||
|Reconciliation of funds:||||||||||||||||||
|Total funds brought forward as<br>previously stated|||359,858||||1,619,899||241,820||2,221,577||||2,018,941|||
|Prior-year adjustment|||||5,980||-||-||||5,980||||5,980|
|Adjusted funds brought forward|||365,838||||1,619,899||241,820||2,227,557||||2,024,921|||
|Net movement in funds|||233,554||||-||-||233,554||||202,636|||
|Transfer of funds to designated<br>propertyfund||(539,392)|||||539,392||-||-||||-|||
|**Total funds carried forward**||||**60,000**|||**2,159,291**||**241,820**||**2,461,111**||||**2,227,557**|||



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## **Statement of Financial Activities - Comparative** 

## **For the year ended 31 October 2024** 

|||**Unrestricted**|**Unrestricted**|**Designated**|**Designated**|**Restricted**|**Restricted**||**TOTAL**|**TOTAL**|||**TOTAL**|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
||||**Fund**||**Fund**||**Fund**||**2024**<br> **(restated)**||||**2023**|
||Notes||**£**||**£**||**£**|||**£**|||**£**|
|Income from:||||||||||||||
|Donations|3||261,583||-||-|||261,583|||250,841|
|Other tradingactivities:||||||||||-|||-|
|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||8,008||-||-|||8,008|||11,261|
|Depreciation charge|||8,433|||||||8,433|||7,603|
|Total expenditure|||106,619||-||-|||106,619|||115,147|
|**Net income for theyear**|||**202,636**||**-**||**-**|||**202,636**|||**176,539**|
|||||||||||||||
|Reconciliation of funds:||||||||||||||
|Funds brought forward at 1<br>November 2023|||157,222||1,619,899||241,820||2,018,941|||1,842,402||
|Net movement in funds|||202,636||-||-||202,636|||176,539||
|Prior-year adjustment|||5,980||-||-||5,980|||-||
|**Funds carried forward at 31**<br>**October 2024(restated)**|||**365,838**||**1,619,899**||**241,820**||**2,227,557**|||**2,018,941**||



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## **Balance Sheet** 

## **As at 31 October 2025** 

||**Notes**||**2025**|**2025**|**2024**|**(restated**)|**(restated**)|**(restated**)|
|---|---|---|---|---|---|---|---|---|
|**Fixed assets**|||£|||£|||
|Tangible assets|15||391,364|||398,673|||
||||**391,364**|||**398,673**|||
|**Current assets**|||||||||
|Debtors|9||132,401|||130,772|||
|Treasurydeposit|||-|||1,485,000|||
|Cash at bank and in hand|16||1,940,350||||217,012||
||||**2,072,751**|||**1,832,784**|||
|Creditors: amounts fallingdue within oneyear|10|||(3,004)||||(3,900)|
|**Net current assets**|||**2,069,747**|||**1,828,884**|||
|**Total assets less current liabilities**|||**2,461,111**|||**2,227,557**|||
|**Funds**|||||||||
|Unrestricted funds:|12||60,000|||365,838|||
|Designated funds|13||2,159,291|||1,619,899|||
|Restricted funds|11||241,820|||241,820|||
|**Total funds**|||**2,461,111**|||**2,227,557**|||



The accounts were approved by the trustees on 18 August 2026 and signed on their behalf by: 

|**Name**|Nesereab Berhane Haile|
|---|---|
|**Position**|ActingChairman and Secretary|
|**Signature**|Nesereab B. Haile|
|**Date**|18 August 2026|



Annual Report and Accounts 2025 | Charity No. 1044068 | Page  11 



## **Notes to the Financial Statements** 

## **For the year ended 31 October 2025** 

## **1. Eritrean Orthodox Christian (St Michael's) Community Church** 

The charity is a registered charity in England and Wales with charity number 1044068. 

The charity qualifies for exemption from the requirement to provide a cash flow statement for the year ended 31 October 2025. 

The  trustees  received  no  remuneration  for  acting  as  trustees.  During  the  year,  magazine-printing  costs  of £2,520  (underlying  invoices:  £2,519.52)  were  reimbursed  or  settled  in  respect  of  invoices  addressed  to Solomon  Russom,  who  served  as  a  trustee  during  the  year.  The  expenditure  related  to  charity  magazines  and was  not  trustee  remuneration.  At  31  October  2025,  £25,000  remained  receivable  from  Debresina  Mariyam Eritrean  Orthodox  Christian  Community  Church  in  respect  of  the  advance  made  for  its  property  purchase.  The balance  is  included  within  debtors  due  after  more  than  one  year.  After  the  year  end,  £17,500  was  repaid  on  27 July 2026; see note 9. 

## **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  applicable  in  the  UK  and  Republic  of  Ireland  (FRS  102).  The  accounts  have  been  prepared under the historical cost convention and on the accruals basis. 

## **b) Tangible assets - building costs** 

Land and buildings are valued at cost. Please refer to note 15 for details. 

## **c) Incoming resources** 

Income  is  recognised  in  the  period  in  which  the  charity  is  entitled  to  the  receipt;  it  is  probable  that  economic benefits  will  flow  to  the  charity,  and  the  amount  can  be  measured  with  reasonable  certainty.  Income  is  deferred where entitlement does not exist at the year-end. 

## **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,  unless  it  is  accrued  where  entitlement  and  measurement  are  sufficiently  reliable. The value of services provided by volunteers has not been included as it is difficult to quantify. 

## **e) Grants 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 recognised when receivable, where entitlement is established, and the amount can be measured reliably. 

## **g) Resources expended** 

Expenditure is recognised where there is a legal or constructive obligation to pay. Costs have been directly attributed to one of the functional categories of resources expended in the Statement of Financial Activities where possible. 

## **h) Governance and administration costs** 

These represent costs incurred by finance, human resources, and legal and professional fees attributable to managing the Church's assets and complying with constitutional and statutory requirements. It also includes general support costs that could not be directly attributed to a particular charitable activity, with allocation reviewed by trustees. 

## **i) Capitalisation and depreciation of tangible fixed assets** 

All tangible fixed assets costing more than £1,000 are capitalised, except where the trustees consider that lower-value equipment should be capitalised because it provides continuing benefit. Depreciation is charged to write off the cost of assets over their expected useful economic lives. 

Annual Report and Accounts 2025 | Charity No. 1044068 | Page  12 



## **j) Pension scheme** 

The  charity  became  a  member  of  NEST  for  pension  auto-enrolment  effective  from  1  April  2016.  Eligible employees  are  automatically  enrolled  unless  they  opt  out.  Employer  pension  contributions  are  charged  to  the Statement of Financial Activities in the period to which they relate. 

## **k) Operating leases** 

Operating lease rentals are accounted for over the lease term. 

## **3. Donations** 

||**2025**|**2025**|**2024**|**2024**|
|---|---|---|---|---|
||**Total**<br>**Unrestricted**||**Total**<br>**Unrestricted**||
|||**£**||**£**|
|Committed giving (membership fees and tithes)||61,210||62,737|
|Operating community church activities (weddings, baptisms, community<br> projects)||12,426||14,392|
|Donations (Sunday and midweek collections, including Gift Aid income for the<br> period)||249,827||184,454|
|**Total**||**323,463**||**261,583**|



## **4. Expenditure on core charitable activities - community church** 

||**2025**|**2025**|**2024**|**2024**|
|---|---|---|---|---|
||**Total Unrestricted**||**Total Unrestricted**||
||**£**||**£**||
|Regular church services(Sundayservices and other special events)|68,252||54,540||
|Reconciliatory and outreach services|23,627||15,105||
|Sundayschool for children|6,876|||6,844|
|Educational support|10,335|||7,867|
|Youth services||5,937||5,822|
|**Total**|**115,027**||**90,178**||



## **5. Governance and administration costs** 

||**2025**|**2025**|**2024**|**2024**|
|---|---|---|---|---|
||**Total Unrestricted**||**Total Unrestricted**||
|||**£**||**£**|
|Staff costs - administration||4,058||3,776|
|Churchpropertycost for administration||1,879||2,045|
|Legal and other professional fees||750|||
|Other administration and support overheads||4,261||2,187|
|**Total**|**10,948**|||**8,008**|



## **6. Staff costs and employee numbers** 

||**2025**|**2024**|
|---|---|---|
||**Total Unrestricted**|**Total Unrestricted**|
||**£**|**£**|
|Gross salaries and wages|77,830|60,496|



Annual Report and Accounts 2025 | Charity No. 1044068 | Page  13 



||**2025**|**2025**|**2024**|**2024**|
|---|---|---|---|---|
||**Total Unrestricted**||**Total Unrestricted**||
|||**£**||**£**|
|Employer National Insurance costs||997||621|
|Pension costs||2,335||1,898|
|**Total**|**81,162**||**63,015**||
||||||
|**The average number of employees during the year is:**|||||
|Senior Church officers|2||2||
|Assistant Church administrators|2||2||
|**Total**|**4**||**4**||



Freelance  and  other  service-provider  costs  are  excluded  from  staff  costs  because  these  individuals  were  not employees  paid  through  payroll.  These  costs  amounted  to  £9,600  in  2025  and  prior  years  are  included  within expenditure on charitable activities or support costs, depending on the nature of the services provided. 

## **7. Trustees' expenses and remuneration** 

No  trustee  received  remuneration  for  acting  as  a  trustee  during  the  year  ended  31  October  2025.  Note  1 discloses  the  payment  to  Solomon  Russom  for  Church  magazine  printing  costs  and  the  Debresina  Mariyam loan balance. 

## **8. Depreciation** 

||**2025**|<br>**2024**|
|---|---|---|
||**£**|<br>**£**|
|Depreciation charge|8,808|<br>8,433|



## **9. Debtors** 

||**2025**|**2024**|
|---|---|---|
||**£**|**£**|
|Prepayments and accrued income|-|8,743|
|Gift Aid tax recoverable|32,391|30,400|
|PAYE balance|-|736|
|Pension/NEST recoverable(fullyrecovered after theyear end)|21,249|9,913|
|Other debtors and control accounts (including Mothers' Group income<br>receivable)|53,762|-|
|Other debtors(loan to Debresina Mariyam)|-|37,500|
|Prior-yearpension/payroll opening-balance adjustment|-|5,980|
|**Total debtors due within oneyear**|**107,402**|**93,272**|
|**Due after more than one year**(Repayable advance to  Debresina Mariyam -<br>original advance £75,000)|25,000|37,500|
|Whole-pound roundingalignment|(1)|**-**|
|**Total debtors**|**132,401**|**130,772**|



**Other debtors and control accounts:** the total of £53,762  (underlying balance £53,762.06) comprises Mothers' Group income receivable of £47,626.66, a rent deposit of £385 and Sunday School funds receivable of £5,750.40. These amounts were recognised only where the trustees confirmed entitlement at 31 October 2025, and the amounts could be measured reliably. 

Annual Report and Accounts 2025 | Charity No. 1044068 | Page  14 



**Pension/NEST recoverable:** the £21,249 balance arose from historic pension contribution adjustments and was fully recovered after the year end following completion of the refund process with NEST. 

**Gift  Aid  tax  recoverable:** the  closing  balance  of  £32,391  comprises  the  £30,400  opening  debtor,  less  £5,809 received  during  the  year,  plus  £7,800  accrued  in  respect  of  qualifying  donations  for  the  year  ended  31  October 2025.  After  the  year  end,  HMRC  paid  £26,686  in  April  2026  (including  £4,000  under  the  Gift  Aid  Small Donations  Scheme  (GASDS)  relating  to  tax  years  2023/24  and  2024/25)  and  a  further  £4,366  in  August  2026. These  receipts  provide  evidence  supporting  recoverability  of  the  year-end  balance.  A  £2,000  GASDS  claim relating  to  the  tax  year  ended  5  April  2026  was  not  recognised  at  31  October  2025  and  will  be  accounted  for  in the  next  accounting  period.  The  trustees  intend  to  submit  Gift  Aid  claims  at  least  twice  each  year  to  support timely recovery. 

A  £1  whole-pound  rounding  alignment  is  shown  in  note  9  so  that  the  primary  statements  and  fund  reconciliation cross-cast exactly; the accounting records retain the underlying balances to the penny. 

**Repayable  advance  to  Debresina  Mariyam:** the  advance  is  due  from  Debresina  Mariyam  Eritrean  Orthodox Christian  Community  Church,  Newcastle,  UK.  The  original  advance  was  £75,000.  Repayments  of  £50,000 were  received  during  the  accounting  period,  leaving  £25,000  outstanding  at  31  October  2025.  The  balance  is shown  as  due  after  more  than  one  year  based  on  the  repayment  profile  at  the  reporting  date.  After  the  year end,  £17,500  was  repaid  on  27  July  2026,  reducing  the  balance  to  £7,500.  The  remaining  balance  is  expected to  be  repaid  by  31  December  2026.  The  post-year-end  repayment  supports  the  trustees'  assessment  that  the £25,000 year-end balance was recoverable and does not change the amount recognised at 31 October 2025. 

## **10. Creditors** 

||**2025**||**2024**|
|---|---|---|---|
||**£**||**£**|
|Trade creditors|741||1,400|
|PAYE liabilities|13||-|
|Accruals(accountingand independent examination fees £2,250)|2,250||1,500|
|Net wages|-||1,000|
|**Total creditors due within oneyear**|**3,004**||**3,900**|



Unpresented cheques of £800 have been deducted from cash and are shown as reconciling items in note 16; they are not included in accruals. These cheques are separate from, and unrelated to, the £1,000 historic pension/payroll opening-balance correction included in note 17. 

## **11. Restricted funds** 

There was no incoming or outgoing movement on the restricted fund during the year. The balance represents a capital grant received for property costs and already expended in previous years. 

||**2025**|**2024**|
|---|---|---|
||**Balance**|**Balance**|
|**Community fund: capital funding**|**£241,820**|**£241,820**|



## **12. Unrestricted fund** 

||**2025**|**2024(restated)**|
|---|---|---|
||**Total Unrestricted**|**Total Unrestricted**|
||**£**|**£**|
|Openingbalance at 1 November|365,838|157,222|
|Prior-year adjustment recognised in the 2024 comparative|-|5,980|



Annual Report and Accounts 2025 | Charity No. 1044068 | Page  15 



||**2025**|**2025**|<br>**2024(restated)**|
|---|---|---|---|
||**Total Unrestricted**||<br>**Total Unrestricted**|
|||**£**|<br>**£**|
|Net surplus for theyear||233,554|<br>202,636|
|Transfer to designated property fund||(539,392)|-|
|||||
|**Closing balance at 31 October**||**60,000**|<br>**365,838**|



The unrestricted fund at 31 October 2025 is £60,000. The opening balance at 1 November 2024 has been restated to £365,838, and the trustees transferred £539,392 to the designated property fund. The prior-year adjustment is explained in note 17. 

## **13. Designated fund** 

The  designated  fund  comprises  amounts  set  aside  by  the  trustees  for  the  Church's  long-term  property objectives.  During  the  year,  the  trustees  approved  an  internal  designation  of  £539,392  from  unrestricted  funds. The designation does not impose an external restriction and may be varied by a future trustee decision. 

||**Balance at 1 November**<br>**2024**|**Transfer from unrestricted**|**Additions**|**Balance at 31 October**<br>**2025**|
|---|---|---|---|---|
|Designated fund|£1,619,899|£539,392|-|£2,159,291|
|**Total**|**£1,619,899**|**£539,392**|**-**|**£2,159,291**|



## **14. Analysis of net assets between funds** 

||**2025**|||||||
|---|---|---|---|---|---|---|---|
||**Tangible assets(£)**|**Net current assets(£)**|||**Total(£)**|||
|Restricted funds|241,820|-|||241,820|||
|Designated funds|149,544|2,009,747|||2,159,291|||
|Unrestricted funds|-|||60,000|||60,000|
|**Total**|**391,364**|**2,069,747**|||**2,461,111**|||
||**2024(restated**)|||||||
||**£**|**£**|||**£**|||
|Restricted funds|241,820|-|||241,820|||
|Designated funds|156,853|1,463,046|||1,619,899|||
|Unrestricted funds|-||365,838|||365,838||
|**Total**|**398,673**|**1,828,884**|||**2,227,557**|||



Annual Report and Accounts 2025 | Charity No. 1044068 | Page  16 



## **15. Tangible fixed assets** 

|**15. Tangible fixed assets**|||||
|---|---|---|---|---|
|Tangible assets<br>Cost brought forward<br>Additions<br>Cost carried forward<br>Accumulated depreciation brought forward<br>Depreciation charge for theyear<br>**Net book balance as at 31 October 2025**|**2025**||**2024**||
||**Total**||**Total**||
||**£**||**£**||
||||||
||460,327||456,177||
||1,499||4,150||
||461,826||460,327||
||(61,654)||(53,221)||
|||(8,808)||(8,433)|
||<br>**391,364**||<br>**398,673**||



A depreciation charge for 2025 was £8,808 (2024: £8,433). 

## **16. Bank transactions** 

||**A/C**<br>**01388630**|**A/C**<br>**01370642**|**A/C 21586572**|**A/C 21642383**|**2025 Total**|**2024 Total**|
|---|---|---|---|---|---|---|
|Opening balance as at 1<br>November 2024|£99,975|£97,636|£6,446|£12,954|**£217,011**|£1,126,195|
|Incomingcash|£307,466|£2,840|£1,445,667|£614,656|**£2,370,629**|£1,952,689|
|Outgoing cash and treasury<br>deposit transfers|(£133,891)|-|(£208,569)|(£305,000)|**(£647,460)**|(£2,861,872)|
|**Closing bank balance as at**<br>**31 October 2025**|**£273,550**|**£100,476**|**£1,243,544**|**£322,610**|**£1,940,180**|£217,012|



The  aggregate  closing  balance  on  the  four  bank  statements  was  £1,940,180.  After  deducting  unpresented cheques  of  £800  and  adding  cash  in  hand  of  £970,  cash  at  bank  and  in  hand  reported  in  the  balance  sheet  is £1,940,350.  The  2024  comparative  outgoing-cash  figure  includes  £1,485,000  transferred  from  bank  accounts to  a  treasury  deposit;  this  was  a  balance-sheet  transfer  and  not  expenditure.  The  unpresented  cheques  are bank-reconciliation  items  and  are  unrelated  to  the  £1,000  historic  pension/payroll  opening-balance  correction  in note 17. 

## **17. Prior-year adjustment and comparative restatement** 

During  preparation  of  the  2025  accounts,  historic  pension  and  payroll  opening-balance  corrections  totalling £5,980  were  identified,  comprising  £4,980.43  and  £1,000.  The  opening  balance  at  1  November  2024  and  the 2024 comparative figures have therefore been restated by £5,980, wholly within unrestricted funds. 

The  adjustment  increases  debtors  and  unrestricted  funds  at  31  October  2024.  Total  funds  at  that  date  increase from  £2,221,577  to  £2,227,557,  and  the  restated  unrestricted  opening  balance  at  1  November  2024  is £365,838. The adjustment has no effect on 2025 cash. 

Annual Report and Accounts 2025 | Charity No. 1044068 | Page  17 



## **18. Allocation of property and staff costs to core activities** 

Property and staff costs have contributed to several of the charity's activities. The trustees believe the following allocation reasonably attributes those costs to the appropriate activities. 

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



Other  administration  and  support  costs  are  allocated  according  to  the  nature  and  use  of  the  expenditure.  Costs not  directly  attributable  to  a  specific  programme  are  included  in  governance  and  administration  where  they relate to the charity's general management and support. 

## **19. Events after the reporting date - property acquisition process** 

During  2026,  the  charity  participated  in  a  competitive  process  concerning  the  possible  acquisition  of  St Andrew's  Church  in  South  London  as  part  of  its  long-term  property  strategy.  The  charity  submitted  an  offer  after considering  affordability  and  professional  legal,  financial,  and  property  advice.  At  the  date  these  financial statements  were  approved,  the  charity  had  not  been  notified  that  it  was  the  preferred  bidder,  and  no  binding acquisition  agreement  had  been  entered  into.  The  matter  is  therefore  treated  as  a  non-adjusting  event  after  the reporting  date.  No  asset,  liability  or  commitment  has  been  recognised  on  31  October  2025.  As  no  binding transaction existed at the approval date, the ultimate financial effect cannot be reliably quantified. 

Annual Report and Accounts 2025 | Charity No. 1044068 | Page  18