REGISTERED COMPANY NUMBER: 09067852 (England and Wales) REGISTERED CHARITY NUMBER: 1158476 Report of the Trustees and Audlted Flnanclal Statements for the Year Ended 30th June 2024 The Jerusalem and the Mlddle East Church AocIatIOn la company Ilmlted by guarantee admlnlstered by the Jerusalem andthe East Misslon Trust Llmlted)
The Jerusalem and the Middle East Church Association la company limited by guarantee administered by the Jerusalem and the East Mission Trust Limited) Contents of the Financial Statements for the Year Ended 30th June 2024 Page Report of the Trustees Report of the Independent Audltors 8 to 10 Statement of Flnanclal Actlvlties li Balance Sheet 12 to 13 Notes to the Flnanclal Statements 14 to 26 Detalled Statement of Flnanclal Actlvltles 27
The Jerusalem and the Middle East Church Association (a company limited by guarantee administered by the Jerusalem and the East Mission Trust Limited) Report of the Trustees for the Year Ended 30th June 2024 The trustees who are also the directors of the Charity for the purpose5 of the Companies Act 2006, present their report with the financial statements of the Charity for the year ended 30th June 2024. The trustees have adopted the provisions of 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 IFRS 1021 (effective 1st January 2019). OBJECTIVES AND ACTIVITIES Obhectlves and alms The Charitable Company was formed with the objective of taking over the activities of The Jerusalem and the Middle East Church Association {JMECAI (registered charity 2487991. The object of the Charitable Company, as defined in the Articles of Ass¢xiation las amended by special resolution dated 25th November 20201, is to benefit the public by encoura8ing support in prayer, money and personal service for the religious and other charitable work of the Episcopal Church of Jerusalem and the Middle East and the Eplscopal/Anglican Province of Alexandria in communion with the See of Canterbury, In pursuance of the object the Charitable Company may malntaln the Cathedral Church and the Close of Saint George the Martyr in Jerusalem and its ancillary buildln8s and may promote theological study in the Middle East and by the churches, mlnisters in any country, Following a review of the strategic objectives of the Jerusalem and the East Mission Trust, the directors, who are also trustees of the Charitable Company, established the following objectives for the period 2022 - 2027.. l. Hold and administer property for the benefit of the dioceses 2. Hold, invest and administer funds for the benefit of the dioceses 3. Develop effective partnerships and promote knowledge about and prayer for the life of the dioceses 4. Maintain excellent governance and working arrangements On 21st May 2020 the Diocese of Egypt with North Africa and the Horn of Africa wa5 formally inaugurated as the autonomous Province of Alexandria. The Diocese5 of Jerusalem, Cyprus and the Gulf and Iran continue to make up the Province of Jerusalem and the Middle East. The trustees have changed their policy regarding the timing of the calculation and payment of annual grants compared to previous years. In the past, annual grants were calculated based on the investment income receivable up to 31st March in a financial year together with an estimate of the income expected to 30th June. For the year ended 30th June 2024 and subsequent years, grants will be based on the actual investment incorne receivable to 30th June and will be agreed by the trustees at a trustees, meeting following the end of the accounting year. As these grants will not have been approved by the trustees at the end of the financial year they do not appear as a creditor in the accounts. One of the main criteria used by the trustees in measuring the success of the charity in a year against the objettives set is whether the charity has maintained or increased the level of grants paid to the three dioceses that make up the Episcopal Church of Jerusalem and the Middle East and the four dioceses that make up the Episcopal/Anglican Province of Alexandria. As mentioned above, no grants have been made in the year from investment income or general unrestricted donations. Although the overall level of grant has still increased there are special factors affecting this which are explained further in the Financial Review section of this report. Page I
The Jerusalem and the Middle East Church Association (a company limited by guarantee administered by the Jerusalem and the East Mission Trust Limited) Report of the Trustees for the Year Ended 30th June 2024 Publlc Benefit The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the aims and objectives of the Charity in planning future activities and in setting the grant making policy for the year. In particular the trustees consider how planned activities will contribute to the aims and objective5 that have been set. ACHIEVEMENT AND PERFORMANCE The Charity has endeavoured to maintain the awareness of the Charity's supporters through the issue of their publication 'Bible Lands,, other specifically designed publicity materials and a website. The work of the communications consultant has significantly enhanced the information available concerning the activities within the two provinces. The Charity supports the three dioceses that make up the Episcopal Church of jerusalem and the Middle East and the four dioceses that make up the EplscopallAnglican Province of Alexandria by the making of grants from donations received and Investment income. The Charlty also acts as a way for interested organisations and individuals lo make donations to specific organisation5 and projects within the provlnces. FINANCIAL REVIEW Investment Investment Powers The tru5tees' power is governed by the Trustee Act 2000. This confers a general power of investment and requires the trustees to invest in a diversified range of suitable instruments. Investment Objectives The investment objectives are al to generate a sustainable income stream year on year which maintains its current purchasing power, bl to at least maintain the capital value of the investments over the long.term. Risk Tolerance The trustees place a high priority on maintaining the real value both of the investments and the income returns over the long-term while recognizing that at times achieving this will mean acceptin8 short or medium term declines In capital value andlor income available for distribution, Ethical and Socially Responsible Investment The trustees have reviewed their investment policy with regard to the Charity Commission's guidance on ethical and responsible investment. The trustee5 recognize and approve the CBF funds manager's policy of investing only in investments that conform to the Church of England's 'Ethical Investment Advisory Group, IEIAGI guidelines, with particular sensitivity relating to investments in the occupied Palestinian territories. Performance Investment income, including deposit account interest, has decreased by 1.4% compared to the previous year, this is primarily due to the transfer of the investments held on behalf of Holy Trinity Church, Algiers from the charitable company to St. Mary's Waqf a5 mentioned in note 6 to the financial statements. The value of the investments ha5 decreased by 8.8Yg over the year, again this was primarily due to the transfer to St. Mary's Waqf of investments relating to Holy Trinity Church, Algiers with a market value of £663,598 at the date of transfer. In addition, investments held on behalf of the Diocese of Iran were sold for £30,000 to finance expenses paid on behalf of the diocese. Page 2
The Jerusalem and the Middle East Church Association (a company limited by guarantee administered by the Jerusalem and the East Mission Trust Limited) Report of the Trustees for the Year Ended 30th June 2024 FINANCIAL REVIEW Flnanclal revlew Income from all donations increased by 727.2% compared to the previous year. This, however, was almost entirely due to appeals for the Al Ahli Hospital, Gaza and the Archbishops, joint appeal for the Diocese of Jerusalem. which raised £145.309 and £97,773 respectively. Unrestricted donations increased by 137.4%. The Charity received no unrestricted legacies in the year ended 30th June 2024 and one legacy of £5,000 restricted for the Archbishops, Appeal12023.' one unrestricted legacy of £5001. A need to preserve and enhance the capital base of invested funds in order to maintain the level of support provided each year throughout the Provinces of Jerusalem and the Middle East and Alexandria continues. This need determines the amount of grant expenditure authori5ed by the trustees, which for the current year totalled £293,839 an increase of 17.5% compared with the previous year. Of the grants payable, however, £243,082 related to the specific appeals for the Diocese of Jerusalem, as following the change in policy for the timing of grants, no grants were made from investment income or general donations in the year other than a number of travel grants from the Bishop Cragg Fund. The management service charge totalled £35,725 12023: £41,275). In March 2023 the charity engaged the servlces of 3 communications consultant to raise the awareness of the work of the charity within the two provinces, fees and expenses paid to the consultant amounted to £7,380 in the year ended 30th June 2024 12023.. £3,372). The cost of raisin8 funds increased to £12,776 2023.. £10,210) this however, included additional fees charged by The Jerusalem and the East Mission Trust Limited in connection with the appeals for the Diocese of Jerusalem. Net outgoing resources for the year totalled £597,35912023'. £130,588), thls, however, is after taking into account the transfer of funds to St Mary's Waqf amounting to £684,930. Further details of grants payable are shown in the financial statements. Reserves The trustees take the view that the aim should be to fulfil the Charity's objects over the long-term, The experience of the trustees is that the Province of Jerusalem and The Middle East and the Province of Alexandria expect both to receive a regular annual grant at a sustained level and from time to time to call upon the Charity for additional and urgent funding, and it is the policy of the trustees, within the terms of the Charity, to maintain reserves at an adequate level to support these two needs. While keeping the level of resources under constant review, the trustees consider the current level to be prudent for thls purpose. In the opinion of the trustees the finances of the Charity are adequate to enable it, with prudent management, to continue to carry out their charitable objectives. The unrestricted reserves of the charity as at 30th June 2024 were £2,244,683 {2023'. £2,057,644), restricted reserves were £2,293,82012023: £2,801,8791, Page 3
The Jerusalem and the Middle East Church Association la company limited by guarantee administered by the Jerusalem and the East Mission Trust Limited) Report of the Trustees for the Year Ended 30th June 2024 PRINCIPAL RISKS AND UNCERTAINTIES The principal risks facing the charity are a loss of investment income and in the long term a significant reduction in the capital value of the investments, These rlsks are managed by investing the charity's funds in the CBF Church of England Investment Fund (both income and accumulation shares), the CBF Church of England Property Fund and the CBF Church of England Deposit Fund. The CBF Church of England Investment Fund is an attively managed, diversified international portfolio of assets designed to help protect both present and future beneficiaries from the effects of excesslve market volatility and inflation. The CBF Church of England Property Fund is an actively managed. diversified portfolio of principally UK commercial property. The CBF Church of England Deposlt Fund offers a high level of capital security and a competltive rate of 5nterest. FUTURE PLANS The Charity aims to continue to support the dioceses which make up the Episcopal Church of Jerusalem and the Middle East and the Episcopal/Anglican Province of Alexandria both financially and by raising awareness of the wider needs of the Christian community within the Middle East. Thls will be achieved by continuing to maintain the level of grant to the dioceses and province and by raising issues in Bible Lands and directly with relevant partie5. STRucfuRE, GOVERNANCE AND MANAGEMENT Governln8 document The Charitable Company Is governed by its amended Memorandum and Articles of Association adopted on 25th November 2020. The trustees of the Charity and the directors of the Charitable Company are the director5 for the time being of The Jerusalem and the East Mission Trust Limited. To assist the trustees In the performance of their duties the council ol the Charity is comprised of the trustees together with the patron, presidents, vice-presidents together with up to twelve additional co-opted members The council acts solely in an advisory capacity and any decisions taken at meetings of the council shall not be binding on the trustees. The directors met five times during the year to consider the overall policy of the Charity and the level of grants to be paid. Following a review of the objectives of the charity and the methods used to fulfil those objectives, the Directors of the Jerusalem and the East Mission Trust, who are the trustees of the Charity, resolved to form two working committees to assist in the administration of the Charity. They are The Resources and Governance Committee and The Communications Group, and are made up of directors and consultants of the Jerusalem and the East Mission Trust and the Administrator. The committees will make recommendations to the directors of the Jerusalem and the East Mission Trust to take forward the objectives of the Charity. The Jerusalem and the Middle East Church Association is one of five charities administered by this trust company which was formed to administer charities and their funds whose objects are to support and advance the work of the Episcopal Church of Jerusalem and the Middle East and the Episcopal/Anglica n Province of Alexandria. The other four charities administered by this trust company are St Mary's Waqf, Trust Property held in connection with the Episcopal Church in Egypt. The Arthur Jones Travel Bursary Trust and The Jerusalem Bishopric Fund. Page 4
The Jerusalem and the Middle East Church Association (a company limited by guarantee administered by the Jerusalem and the East Mission Trust Limited) Report of the Trustees for the Year Ended 30th June 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT Recruitment, appointment, induction and training of newtrustees New trustees and members of the council are appointed or invited to serve in accordance with the constitution when vacancies arise. New members are provided with information on the work of the Charity. The secretary of the councll and the existing trustees of the Charity ensure that all relevant aspetts of charity law are drawn to the attention of trustees. The policy for recruitment and training for directors of The Jerusalem and the East Mission Trust Lirnited is as follows: New director5 are recommended to fill vacancies by existing directors, bishops of the provinces or others closely associated with the Charity's activities, Prospective directors are interviewed by the chair and other directors as appropriate and details including full Cvs are submitted to the board for approval, Prospective directors are given an introduction to the work of the Charity and information on the role of trustees and charity law. Charity Commission publications are regularly distributed to the directors. Rlsk management As required by the Charity Commisslon, the trustees regularly undertake reviews of any significant r5sks to the charitable company to ensure that appropriate mitigation policies exist. REFERENCE AND ADMINISTRATIVÉ DETAILS Registered Company number 09067852 (England and Wales) Registered Charlty number 1158476 Reglstered offlce l Hart House The Hart Farnham Surrey GU9 7HJ Trustees Rt Rev A J Ball (Chairl J M Clark Rev Canon Dr W H Taylor Iresigned 2.12.23 D A Wright J G Pringle (resigned 29.11.231 Dr C Amos Rev Canon Dr M l Rhodes (resigned 29.11.23} Revy Said Rev C M Dawkins CA Hawkey Company Secretary S A Eason Page 5
The Jerusalem and the Middle East Church Association (a company limited by guarantee administered by the Jerusalem and the East Mission Trust Limited) Report of the Trustees for the Year Ended 30th June 2024 REFERENCE AND ADMINISTRATIVE DETAILS Auditors Sheen Stickland Chartered Accountants Statutory Auditors 2 Oriel Court Omega Park Alton Hampshire GU34 2YT Legal Advlsers Winckworth Sherwood LLP Arbor 255 Blackfriars Road London SEI 9AX Investment Managers CCLA Investment Management Limited One Angel Lane London EC4R 3AB EVENTS SINCE THE END OF THE YEAR Information relating to events since the end of the year Is given in the notes to the flnancial statements. STATEMENT OF TRUSTEES, RESPONSIBILITIES The trustees (who are also the directors of The Jerusalem and the Middle East Church Association for the purposes of company lawl are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affair5 of the charitable company and of the incoming resources and application of resources, including the income and expenditure. of the charitable company for that period. In preparing those financial statements, the trustees are required to select suitable accounting policie5 and then apply them consistently; observe the methods and principles in the Charity SORP; make judgements and estimates that are reasonable and prudent,. prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Page 6
The Jerusalem and the Middle East Church Association la company limlted by guarantee administered by the Jerusalem and the East Mission Trust Lbmited) Report of the Trustees for the Year Ended 30th June 2024 STATEMENT OF TRUSTEES, RESPONSIBILITIES- contlnued In so far as the trustees are aware- there is no relevant audit information of which the charitable company's auditors are unaware,. and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. AUDITORS The auditors, Sheen Stickland, will be proposed for re-appointment at the forthcoming Annual General Meeting. This report has been prepared in accordance with the special provisions of Part 15 of the Companies Ad 2006 relating to small companies, Approved by order of the board of trustees on and signed on its behalf by: Rt Rev ustee Page 7
Report of the Independent Auditors to the Trustees of The Jerusalem and the Middle East Church Association Oplnlon We have audited the financial statements of The Jerusalem and the Middle East Church Association (the 'charitable company'l for the year ended 30th June 2024 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation 15 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: give a true and fair view of the state of the charitable company's affairs as at 30th June 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Companies Act 2006. Basls for oplnlon We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial staternents in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relatlng to golng concern In auditing the financial statements, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not Identified any material uncertaSnties relatin8 to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the fina ncial statements are authorised for issue. Our responslbllities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other Informatlon The trustee5 are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the I ndependent Auditors thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements. our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsister)cies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Matters on whlch we are requlred to report by exceptlon We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion: the information given in the Report of the Trustees is inconsistent in any material respect with the financial statement5,' or the charitable company has not kept adequate accounting records,. or the financial Statements are not in agreement with the accounting records and returns,. or we have not received all the information and explanations we require for our audit. Page 8
Report of the Independent Auditors to the Trustees of The Jerusalem and the Middle East Church Associatlon Responsibilities of trustees As explained more fully in the Statement of Trustees, Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial Statements and for being satisfied that they give a true and fair view. and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operation5, or have no realistic alternative but to do so. Our responslbllitles for the audit of the financial statements We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud Is detalled below.. We ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable law5 and regulations. The laws and regulatlons applicable to the company were identified through discussions with the trustees and other management, also from our commercial knowledge and experience of the charitable company. Of these laws and regulations, we focused on those that we considered may have a direct material effect on the financial statements or the operations of the charitable company, includin8 but not limited to The Companies Act 2006, taxation legislation. data protection, anti-bribery, anti-money-laundering, employment, environrnental and health and safety legislation. The extent of compliance with these laws and regulations identified above was assessed through making enquiries of management and inspecting legal expenditure and correspondence. The identified laws and regulations were communicated within the audit team, the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the charitable company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, bv: considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations,. and understanding the design of the charitable company's rernuneration policies. making enquiries of management as to where they considered there was susceptibility to fraud, them knowledge of actual, suspected and alleged fraud; To address the risk of fraud through management bias and override of controls, we.. tested journal entrie5 to identify unusual transaction5,' performed analytical procedures to identify any unusual or unexpected relationships,. assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias,. and investigated the rationale behind significant or unusual transactions. Page 9
Report of the Independent Auditors to the Trustees of The Jerusalem and the Middle East Church Association In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: agreeing financial statement disclosures to underlying supporting documentation; reading the minutes of meetings of those charged with governance; enquiring of management as to actual and potential litigation and claims; and reviewing correspondence with relevant regulators. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fralsd rather than error, as fraud involves intentional concealment, forgery, collusion, omi55ion or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors. Use of our report This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities IAccounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to then in an auditors, report and for no other purpose. To the f ullest extent permitted by law, we do not accept or assunie responsibility to anyone other than the charitable company and the charitable company's trustees as a body, for ou r audit work, for this report, or for the opinions we have formed. Sheen Stickland Chartered Accountants Statutory Auditors Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 2 Oriel Court Omega Park Alton Hampshire GU34 2Yr Date: Page 10
The Jerusalem and the Middle East Church Association (a company limited by guarantee administered by the Jerusalem and the East Mission Trust Limited) Statement of Financlal Activities (Incorporating an Income and Expenditure Account) for the Year Ended 30th June 2024 2024 Total funds 2023 Total funds Unrestricted Restricted funds funds Notes INCOME FROM Donations and legacies 36,690 265.014 301,704 36,868 Investment income 69,156 66,431 135,587 137,466 Total 105,846 331,445 437,291 174,334 EXPENDITURE ON Raising funds 8,601 4,175 12,776 10,210 Charltable actlvltles Support for the work of the Anglican churches in the Middle East and Africa Diocese of Jerusalem 5,578 7,744 14,645 277,500 304 686,103 30,000 283,078 8,048 700,748 30,000 121,189 95,988 81,060 13,5251 Dlocese of Cyprus and the Gulf Province of Alexandria Diocese of Iran Total 36,568 998,082 1,034,650 304,922 Net gains/llossesl on investments 117,761 158,578 276,339 125,1211 NET INCOME/(EXPENDITUREI 187,039 1508,0591 1321,0201 1155,7091 RECONCILIATION OF FUNDS Total funds brought forward 2,057,644 2,801,879 4,859,523 5,015,232 TOTAL FUNDS CARRIED FORWARD 2.244.683 2,293,820 4,538,503 4,859,523 The notes form part of these financial statements Page 11
The Jerusalem and the Middle East Church Association (a company limited by guarantee administered by the Jerusalem and the East Mission Trust Limited) Balance Sheet 30th June 2024 2024 Total funds 2023 Total funds Unrestricted Restricted funds funds Notes FIXED ASSETS Investments li 2,099,022 2,215,251 4,314,273 4,730.493 CURRENT ASSETS Debtor5 Cash at bank 12 78,224 86,624 211.790 84,070 290,014 170,694 279,049 53.679 164,848 295,860 460,708 332,728 CREDITORS Amounts falling due within one year 13 119,1871 1217,2911 {236,4781 1203,6981 NET CURRENT ASSETS 145,661 78,569 224,230 129,030 TOTAL ASSETS LESS CURRENT LIABILITIES 2,244,683 ' 2,293.820 4,538,503 4,859,523 NET ASSETS 2,244,683 2,293,820 4,538,503 4,859,523 FUNDS Unrestricted funds Restricted funds 14 2,244,683 2,293,820 2,057,644 2,801,879 TOTAL FUNDS 4,538,503 4,859,523 The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30th June 2024. The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006 requirin8 an audit of these financial statements. The trustees acknowledge their responsibilities for (al ensuring that the charitable company keep5 accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and preparing financial statements which give a true and fair view of the state of affairs of the charitable companv as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far a5 applicable to the charitable company. Ibl These financial statements have been audited under the requirements of Section 145 of the Charities Act 2011. The notes form part of these financial statements Page 12 continued...
The Jerusalem and the Middle East Church Association (a company limited by guarantee administered by the Jerusalem and the East Mission Trust Limited) Balance Sheet- continued 30th June 2024 These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. The f i ncial statements were approved by the Board of Trustees and authorised for issue on and were signed on Its behalf by.. ,LIL Ld Rt RevAJ Ball-Trustee Rev C M Dawkins- Trustee The notes form part of these financial statements Page 13
The Jerusalem and the Middle East Church Association (a company limited by guarantee administered by the Jerusalem and the East Mission Trust Limited) Notes to the Financial Statements for the Year Ended 30th June 2024 ACCOUNTING POLICIES Basis of preparing the financial statements The financial statements of the Charitable Company. which is a public benefit entity, have been prepared in accordance with 'Accounting and Reporting by Charities: Statement of Recommended Practice (Charities SORPI,, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland - IFRS1021', the Charities Act 2011 and the Companies Act 2006. The financial statements have been prepared under the historical cost convention with the exception of investments which are included at market value. The Charitable Company had net current assets of unrestricted funds of £145,661 as at 30th June 2024 {2023: £76,380). The trustees consider, on the basis of the information available to them, that the Charitable Company has adequate resources to continue in operational existence for the foreseeable future and for this reason the board of trustees continues to adopt the going concern basis in preparing the financial statements, The financial statements have been prepared on the 80in8 concern basls as In the opinion of the trustees the effects of the current international and financial situation5 will not significantly impact on either the value of the charity's investments or its investment income in the lon8 term. Income All income is recognised in the Statement of Financial Activities once the Charity has entitlement to the funds, it is probable that the income w511 be received and the amount can be measured reliablv. Expendlture Liabilities are recognised as expenditure as soon as there is a le8al or constructive obligation committing the Charity to that expenditure, it Is probable that a transfer of economic benefit5 will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all c05t related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Grants payable Grants payable are taken to the Statement of Financial Activities in the year they are approved. Grants from restricted income and funds are paid in accordance with the donors, wishes. Those paid from designated and unrestricted income and funds are distributed at the discretion of the trustees, sometimes in consultation with the archbishops and synods of the province5. Management service charge The management service charge is a support cost allocated to the activities of the Charity on a basis consistent with the use of resources, calculated by reference to the value of the funds as at 31st December of each year and is used to run the ofFices of The Jerusalem and the East Mission Trust Limited. The management service charge is allocated entirely to charitable expenditure. Audit fees are recognised within the service charge payable to The Jerusalem and the East Mission Trust Limited. Raising funds Fundraising and publicity/charity administration costs continue to be charged solely to The Jerusalem and the Middle East Church Association as it is the main beneficiary of funds raised. Page 14 continued.-.
The Jerusalem and the Middle East Church Association {a company limited by guarantee administered by the Jerusalem and the East Mission Trust Limited) Notes to the Financlal Statements- continued for the Year Ended 30th June 2024 ACCOUNTING POLICIES- continued Tangible fixed assets Depreciation is provided at the following annual rates in order to wrlte off each asset over its estimated useful life. Website 33% on cost Taxation As a registered charity no liability to direct taxation arlses on the charitable activities. Investments Investments are stated at mid-market value at the balance sheet date. All movements In value arising from Investment changes are shown in the Statement of Financial Activlties. Unrealised 8ains/losses are the difference in tharket value of investments held at the beginning of the year, or their cost if purchased in the year, and at the end of the year. DONATIONS AND LEGACIES 2024 2023 Donations Legacies 296,704 5,000 35,868 1,000 301,704 36,868 INVESTMENT INCOME 2024 2023 Income from listed investments Deposit account interest 129.669 5,918 133,471 3,995 135,587 137,466 Page 15 continued...
The Jerusalem and the Middle East Church Association (a company limited by guarantee administered by the Jerusalem and the East Mission Trust Limited) Notes to the Financial Ststements- continued for the Year Ended 30th June 2024 RAISING FUNDS Ralslng donatlons and legacies 2024 2023 Website expenses Magazlne costs Fundraising expenses 778 4,939 7,059 1,375 8,703 132 12,776 10,210 CHARITAgLE ACTIVITIES COSTS Grant funding of activities (see note Support costs (see note 71 Totals Support for the work of the Anglican churches in the Middle East and Africa Diocese of Jerusalem 260,361 304 686,103 30,000 22,717 7,744 14,645 283,078 8,048 700,748 30,000 Diocese of Cyprus and the Gulf Province of Alexandria Diocese of Iran 976,768 45,106 1,021,874 GRANTS PAYABLE 2024 2023 Support for the work of the Anglican churches in the Middle East and Africa Diocese of Jerusalem 260,361 304 686,103 30,000 102,259 81,256 68,923 13,5251 Diocese of Cyprus and the Gulf Province of Alexandria Diocese of 5ran 976,768 248,913 Grants for the Province of Alexandria includes £684,930 in respect of funds held on behalf of Holy Trinity Church, Algiers which were transferred to St Mary's Waqf in the year. Page 16 continued..
The Jerusalem and the Middle East Church Association (a company limited by guarantee admlnistered by the Jerusalem and the East Mission Trust Limited) Notes to the Financial Statements - continued for the Year Ended 30th June 2024 GRANTS PAYABLE- continued An analysis of grants payable between the dioceses of Jerusalem and Cyprus and the Gulf and the Province of Alexandria and the source of those grants is shown in the following table. The allocation of certain grants is at the discretion of the bishops of the dioceses whereas other grants are allocated to specific projects or organisations wlthin a diocese. The transfer of funds relating to Holy Trinity Church, Algiers to St Mary's Waqf is not included in this table. From general donatlons & legacles From earmarked donatlons & legacies From Investment Income Total grants 2024 2024 Diocese of Jerusalem Diocese of Cyprus and the Gulf Province of Alexandria Dlocese of Iran 259,361 304 1,173 1,000 1,318 683 30,000 260,361 1,622 1,856 30,000 88.61 0.55 0.63 10.21 260,838 33,001 293,839 100.00 Fifteen grants totalling £290,838 were made to organisations and one grant of £1,000 was made to an individual. The grant for the Diocese of Iran was remitted to and used by the Diocese of Cyprus and the Gulf on projects for the benefit of the Diocese of Iran. No funds were remitted to Iran. SUPPORTCOSTS Support costs comprise the management service charge £35,72512023 £41,725), the fees and expenses of the communications consultant £7,38012023 £3,372) and travel expenses £2,00112023 - £1,152). These costs have been taken entirely to charitable expenditure. TRUSTEES, REMUNERATION AND BENEFITS The Jerusalem and the East Mission Trust Limited when acting as trustee received remuneration in the form of a management service charge of £35,725 12023.. £41,275}. In addition, fund raising costs in connection with the appeals for the Diocese of Jerusalem of £2,696 were recharged to the charity. The directors of the company did not receive any remuneration from the Charity. Page 17 continued...
The Jerusalem and the Middle East Church Association {a company limited by guarantee administered by the Jerusalem and the East Mission Trust Limited) Notes to the Financial Statements- continued for the Year Ended 30th June 2024 TRUSTEES, REMUNERATION AND BENEFITS- continued Trustees, expenses Durin8 the year ended 30th June 2024 travel expenses totalling £2,001 were reimbursed to three trustees 12023 - £1,152 to three trustees). COMPARATIVES FOR THE STATEMENT OF FINANCIALACTIVITIES Unrestricted Restricted funds funds Total funds INCOME FROM DonatSons and le8acies 15,953 20,915 36,868 Investment income 69,443 68,023 137,466 Total 85.396 88,938 174,334 EXPENDITURE ON Raising funds 10,112 98 10,210 Charltable actlvltles Support for the work of the Anglican churches in the Middle East and Af rica Diocese of Jerusalem 55,344 85,239 54,794 65,845 10,749 26,266 13,5251 121,189 95,988 81,060 13,5251 Diocese of Cyprus and the Gulf Province of Alexandria Diocese of Iran Total 205,489 99,433 304,922 Net gains/llossesl on investments 151,8471 26,726 125,1211 NET INCOME/IEXPENDITURE) {171,9401 16,231 {155,7091 RECONCILIATION OF FUNDS Total funds brought forward 2.229,584 2,785,648 5,015,232 TOTAL FUNDS CARRIED FORWARD 2,057,644 2,801,879 4,859,523 Page 18 continued...
The Jerusalem and the Middle East Church Association (a company limited by guarantee administered by the Jerusalem and the East Mission Trust Limited) Notes to the Financial Statements- continued for the Year Ended 30th June 2024 io. TANGIBLE FIXED ASSETS Website COST At 1st July 2023 and 30th June 2024 9,670 DEPRECIATION At 1st July 2023 and 30th June 2024 9,670 NET BOOK VALUE At 30th June 2024 At 30th June 2023 ii. FIXED ASSET INVESTMENTS Listed investments MARKET VALUE At 1st July 2023 Additions Disposa15 Revaluations Surplus on disposal 4,730,493 1,039 1693,5981 269,735 6,604 At 30th June 2024 4,314,273 NET BOOK VALUE At 30th June 2024 4,314,273 At 30th June 2023 4,730,493 There were no investment assets outside the UK. Cost or valuation at 30th June 2024 is represented bv.. Listed investments Valuation in 2024 4,314.273 The historical cost of fixed asset investments was £2,812,62812023.. £3,494,960). Page 19 continued...
The Jerusalem and the Middle East Church Association (a company limited by guarantee administered by the Jerusalem and the East Mission Trust Limited) Notes to the Financial Statements- continued for the Year Ended 30th June 2024 12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Other debtors The Jerusalem and the East Misslon Trust Limited Prepayments and accrued income 5,047 250,551 34,416 3,596 243,201 32,252 290,014 279,049 13, CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Other creditors Grants payable Accruals and deferred income 525 191,012 44,941 179,531 24,167 236,478 203,698 14. MOVEMENT IN FUNDS Net movement in funds At 30.6.24 At 1,7.23 Unrestrlcted funds General fund General Ministry Legacy reserve Phillips & Cane A B Jones discretionary fund Small funds not detailed Bishop Cragg Travel fund 19,0111 890,418 451,259 292,275 256,365 43,422 132,916 22,333 77,962 30,832 25,439 21,129 2,019 7,325 13,322 968,380 482.091 317,714 277,494 45,441 140.241 2,057,644 187,039 2,244,683 Restrlcted funds Jerusalem Girls College/Worsley fund Moore-steele Graham Brown/Phillips Holy Trinity Church, Algiers Small funds not detailed Diocese of Iran Gobat Stewart 880,363 633,972 259,850 678,463 142,435 107,482 99,314 86,127 63,341 22,386 1678,4631 11,372 122,7921 9,970 966,490 697,313 282,236 153.807 84,690 109.284 2,801,879 1508,0591 2,293,820 TOTAL FUNDS 4,859,523 1321,0201 4,538,503 Page 20 continued.
The Jerusalem and the Middle East Church Association (a company limited by guarantee administered by the Jerusalem and the East Mission Trust Limited) Notes to the Financial Statements- continued for the Year Ended 30th June 2024 14. MOVEMENT IN FUNDS- continued Net movement in fund5, included in the above are as follows.. Incoming resources Resources expended Gains and losses Movement in funds Unre5trlcted funds General fund General Ministry Legacy reserve Phillips & Cane A B Jones discretionary fund Small funds not detailed Bishop Cragg Travel fund 36,693 30.157 13,912 9,819 8,844 1,921 4,500 114,3601 17,8441 13,4091 12,5551 12,2311 13641 15,8051 22,333 77,962 30.832 25,439 21.129 2,019 7,325 55,649 20,329 18,175 14,516 462 8,630 105,846 136,5681 117,761 187,039 Restrlcted funds Jerusalem Girls Collegelworsley fund Moore-steele Graham Brown/Phillips Holy Trinity Church, Algiers Small funds not detailed Diocese of Iran Gobat Stewart 28,603 19,712 8,793 37 270,149 1,069 3,082 17,7761 15,6121 12,2701 1684,9301 1266,2501 130,3641 18801 65,300 49,241 15,863 6,430 7,473 6,503 7,768 86,127 63,341 22,386 1678,463} 11,372 122,7921 9,970 331,445 1998,0821 158,578 1508,0591 TOTAL FUNDS 437,291 11,034,6501 276,339 1321,0201 Page 21 continued...
The Jerusalem and the Middle East Church Association la company limited by guarantee administered by the Jerusalem and the East Mission Trust Limited) Notes to the Financial Statements- continued for the Year Ended 30th June 2024 14. MOVEMENT IN FUNDS- continued Comparatives for movement in funds Net movement in f unds Transfers between funds At 30.6.23 At 1.7.22 Unrestrlcted funds General fund General Ministry Legacy reserve Phillips & Cane A B Jones discretionary fund Small funds not detailed Bishop Cragg Travel fund 18,9291 1,015,052 480,002 299,613 264,053 46,109 133,684 110,0821 1124,6341 118,7431 17,3381 17,6881 12,6871 17681 10,000 19,011) 890.418 451,259 292,275 256,365 43,422 132,916 iio,0001 2,229,584 1171,9401 2,057,644 Restrlcted funds Jerusalem Girls College/Worsley fund Moore-steele Graham Brown/Phillips Holy Trinity Church, Algiers Small funds not detailed Diocese of Iran Province of Alexandria Gobat Stewart 874,839 625,693 265,053 654,083 152,135 106,024 10,030 97,791 5,524 8,279 15,2031 24,380 19,7001 1,458 110,0301 1,523 880,363 633,972 259,850 678,463 142,435 107,482 99,314 2,785,648 16,231 2,801,879 TOTAL FUNDS 5,015,232 11SS,7091 4,859,S23 Page 22 continued...
The Jerusalem and the Middle East Church Association {a company limited by guarantee administered by the Jerusalem and the East Mission Trust Limited) Notes to the Financial Statements- continued for the Year Ended 30th June 2024 14. MOVEMENT IN FUNDS- continued Comparative net movement in funds, included in the above are as follows: Incoming resource5 Resources expended Gains and Movement losses in funds Unrestricted funds General fund General Ministry Legacy reserve Phillips & Cane A B Jones discretionary fund Small funds not detailed Bishop Cragg Travel fund 15,950 31,677 13,869 9,626 8,623 1,603 4.048 126,0321 1140,7181 114,3761 111,4351 18,5271 14481 13,9531 110,0821 1124,6341 118,7431 17,3381 {7,6881 {2,6871 17681 115,5931 118,2361 15,5291 {7,7841 13,8421 18631 85,396 1205,4891 151,8471 1171,9401 Restrlcted funds Jerusalem Girls College/Worsley fund Moore-steele Graham Brown/Phillips Holy Trinity Church, Algiers Small funds not detailed Diocese of Iran Province of Alexandria Gobat Stewart 27,857 19,220 8,538 3,389 25,665 1,007 265 2,997 127,4481 119,2131 18,4511 5,115 8,272 15,2901 20,991 14,2561 451 5,524 8,279 15,2031 24,380 19,700) 1,458 110,0301 131,1091 110,2951 12,9171 1,443 88,938 199,4331 26,726 16.231 TOTAL FUNDS 174,334 1304,9221 125.1211 1155,7091 The general fund is in surplus as no grant was made from this fund in the year. Unrestricted donations will be paid over in full but the costs of generating voluntary income are charged to this fund. The fund will therefore be in deficit when the grants have been paid. A transfer will be made from the Legacy Reserve Fund to cover this deficit. Deficits are expected to continue to arise in future years when further transfers will be made from the Legacy Reserve Fund or other unrestricted funds as required. The General Ministry Fund is an amalgamation of former funds as follows.. Endowment and Augmentation of Episcopal Stipends Fund, Jerusalem Chapter Endowment Fund, The Blair Fund and St Margaret's Fund. The fund is for the support of the Ministry in the JMECA area. The Legacy Reserve Fund arises from the trustees, established policy of capitalising unrestricted legacies, the income from which enables support to be given each year where a particular need is perceived for which other fund5 are not available. The A B Jones, Discretionary Fund was established from a substantial legacy which the testator stated could be used for general purposes, but she expressed the wish that, if necessary. it could supplement a small fund which assists Welsh ordinands in visiting Jerusalem. Page 23 continued...
The Jerusalem and the Middle East Church Association (a company limited by guarantee administered by the Jerusalem and the East Mission Trust Limited) Notes to the Financial Statements- continued for the Year Ended 30th June 2024 14. MOVEMENT IN FUNDS- continued The Small Unrestricted funds not detailed comprises two funds. The first of which amounting to £24,303 Is in regard to the St George's College General Fund, this fund is to meet the general UK expenses for St George's College, Jerusalem. The second fund balance of £21,138 15 the staff Welfare Fund which is for the payment of gratuitie5 to current and former employees. The Bishop Cragg Travel Fund was originally for the travel of Bishop Cragg but now provides grants to holders of similar appointments. The Jerusalem Girls College and Worsley Fund, formed by the amal8amation of two smaller funds, is for the education of children anywhere within the Province of Jerusalem and the Middle East and the Province of Alexandria, in consultation with the provinces. The Moore-steele Fund is for the provision of education31 work in Israel and Jordan In consultation with the Archbishop in Jerusalem. The PhiS1ips and Cane Fund was originally established to assist wlth the trainlng of Palestinian clergy and also to enable theological students from England to visit Palestine, The furd was re-designated in November 2013 to fund training of clergy and lay leadership in the Province of the Episcopal Church of Jerusalem and the Middle East and the Episcopal/Anglican Province of Alexandria. The Graham Brown and Phillips Fund was established for the training of clergy ar)d religious workers and the furtherance of Christian Studies. By an agreement dated 21st March 2019, the Diocese of Egypt with North Africa and the Horn of Africa received the sum of £1,100,000 as compensation for the loss of incorne in respect of a building owned by Holv Trinity Church, Algiers. The balance of this fund was transferred to Sl Mary's Waqf during the year. The Small Restricted Fund balance of £153,807 12023'.£142,0351 comprises funds split into educational, medical and other. The education fund with a balance of £22.023 is to help students at St George's College. Medical funds of £69,037 represent the Newton Fund (incorporating the Isabella Bailey Fund). This fund is used at the discretion of the Archbishop in Jerusalem. The Other fund balance of £62,747 is for the Archbishop's Assyrian Mission this fund is used in the Diocese of Cyprus and the Gulf, with particular reference to its work in Iraq and, where possible the Assyrian Christians in that country The Gobat Stewart Fund is to provide bursaries at St George's School, jerusalem. Funds allocated to or received for the Diocese of Iran are held in a restricted fund until such time as these funds can be transferred to the diocese or used for the benefit of the diocese. The Province of Alexandria requested that surplus funds not yet required by the province be held by the charity in a restricted fund on behalf of the province. Following a request from the province, the balance of this fund wa5 transferred to the province in the year ended 30th June 2023. Page 24 continued...
The Jerusalem and the Middle East Church Association (a company limited by guarantee administered by the Jerusalem and the East Mission Trust Limited) Notes to the Financial Statements - continued for the Year Ended 30th June 2024 15. RELATED PARTY DISCLOSURES As at 30th June 2024 funds of the Charitable Company totalling £250,55112023: £243,201) were held by the Jerusalem and the East Mission Trust Limited. £35,274 was owed 12023.. £3,149 overpaid) by the Charity to the Jerusalem and the East Mission Trust Limited in respect of management service charges as at 30th June 2024 and is included as a creditor on the balance sheet. The Rt Rev A J Ball (the chair of the charity) is Bishop in North Africa within the Province of Alexandria. As such there could be perceived to be a conflict of interest between this role and his position within the charity. The trustees are aware of this potential conflict of interest and therefore the chair 15 not involved in decisions regarding grants to be paid by the charity. Other than as above and as detailed in note 8, there were no related party transactions for the year ended 30th June 2024. 16. POST BALANCE SHEET EVENTS Post year end the trustees have agreed and approved £93,032 of grants to be paid between the dioceses which make up the Episcopal Church of Jerusalem and the Middle East and the Episcop3l/Anglican Province of Alexandria as follows., £49,744 to the Diocese of Jerusalem, £17,644 to the Diocese of Cyprus and the Gulf and £25,644 to the Province of AlexandrS3. 17. COMPANY STATUS The Charitable Company is a private company limited by guarantee and consequently does not have a share capital. Each of the members is liable to contribute an amount not exceeding £1 towards the assets of the company in the event of liquidation. 18. LEGACIES The Jerusalem and the Middle East Church Association is one of the beneficiaries of a legacy in relation to a property trust. The timing of the receipt of this legacy and its value cannot be ascertained with any accuracy or reasonable certainty at present. therefore no amounts have been included in these accounts. Page 25 continued...
The Jerusalem and the Middle East Church Association (a company limlted by guarantee administered by the Jerusalem and the East Mission Trust Limited) Notes to the Financial Statements- continued for the Year Ended 30th June 2024 19. ASSETS HELD ON TRUST The Charitable Company holds the deeds of title to a number of properties on behalf of various bodies within the area of The Episcopal Church of Jerusalem and the Middle East. The custodian ownership of these properties is vested in the Charitable Company as trustee in perpetuity for the benefit of the members of those bodies. By reason of the nature of the Charitable Company's interest in these properties, the trustees consider that no value should be specified in respect thereof. Page 26
The Jerusalem and the Middle East Church Association la company limited by guarantee administered by the Jerusalem and the East Mission Trust Limited) Detailed Statement of Financial Activities for the Year Ended 30th June 2024 2024 2023 INCOME Donatlons and legacies Donations Legacies 296,704 5,000 35,868 1,000 301,704 36,868 Investment income Income from listed investments Deposit account interest 129,669 5,918 133,471 3,995 135,587 137,466 Total Incomlng resources 437,291 174,334 EXPENDITURE Ra151ng donatSons and le8acles Website expenses Magazine costs Fundraising expenses 778 4,939 7,059 1,375 8,703 132 12,776 10,210 Charitable actlvftles Grants Funds transferred 291,838 684,930 248,913 976.768 248,913 Support costs Management Service charge Communication consultant fees Communications consultant expenses Travel expenses 35,725 5.760 1,620 2,001 41,275 1,920 1,452 1,152 45,106 45,799 Total resources expended 1,034,650 304,922 Net expenditure 1597,3591 1130,5881 This page does not form part of the statutory f inancial statements Page 27