Charity Registration No. 1172096
Company Registration No. CE010596 (England and Wales)
THE FRIENDS OF ETCHMIADZIN
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
THE FRIENDS OF ETCHMIADZIN
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Bishop V Manukyan Mr H H Didizian Mr R B Tanielian Ms S Ross LLB (HONS)
Charity number 1172096 Principal address 27 Haven Green Ealing London W5 2NZ Independent examiner Bridget Culverwell Moore Northern Home Counties Limited First Floor 73-75 High Street Stevenage Hertfordshire SG1 3HR Bankers National Westminster Bank plc Kensington, Royal Garden Branch PO Box 2341 55 Kensington High Street London W8 5ZG
THE FRIENDS OF ETCHMIADZIN
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Statement of cash flows | 6 |
| Notes to the financial statements | 7 - 10 |
THE FRIENDS OF ETCHMIADZIN
TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021
The trustees present their report and financial statements for the year ended 31 March 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Trust Deed , the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
Objectives and activities
The object of the Charity is the advancement of religion in accordance with the doctrines of the Armenian Church by the provision of support to the Mother See of Holy Etchmiadzin in Armenia and around the world in such manner as the charity trustees may determine from time to time.
The Trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our future activities.
Achievements and performance
During the year, the trustees received donations of £343,957 and gift aid of £7,963. In furtherance of the Trust objectives, the trustees made grant donations totalling £318,769 to the Mother See of Holy Etchmiadzin. This donation was to mitigate the humanitarian fallout of COVID 19 and for the families that have had to be relocated from Artsakh to Armenia. A grant of £708 was made towards ACT UK to maintain the Bishop's House in where community events and functions are held. There were three separate payments made to ACT UK as goods became needed such as printers and filing equipment.
Financial review
The Charity does not have a policy for holding reserves since it operates on the basis that it raises funds for particular projects and is not committed to ongoing running costs. At the year-end, the Charity had a fund of £122,022 mainly due to £78,259 gift aid to be claimed. There are plans to further mitigate risks in the future by reducing the level of grants paid out and streamlining expenditure wherever possible.
The Trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity. There are currently no specific risks or uncertainties to which the Charity is exposed, but the Trustees will continue to monitor the Charity's activities and manage any risks as and when they are identified.
The Trust intends to continue its central policy of making grants to religious organisations in particular the Mother See of Holy Etchmiadzin in Armenia; clergy training with detailed programs; continue to assist maintaining the Bishop's House in Ealing, London; assist the Bishop with his commitments of visiting parishes throughout the United Kingdom and overseas in particular Armenia; and provide educational support to students.
Structure, governance and management
The Friends of Echmiadzin is a registered Charity and a Charitable Incorporated Organisation g overned by its Trust Deed.
The trustees who served during the year and up to the date of signature of the financial statements were: Bishop V Manukyan Mr H H Didizian Mr R B Tanielian Ms S Ross LLB (HONS)
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THE FRIENDS OF ETCHMIADZIN
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
A Board of Trustees of four members administers the Charity. The Board has the power to appoint any person to be a Trustee, either to fill a casual vacancy or as an addition to the existing members.
None of the trustees has any beneficial interest in the charity . If the charity is wound up, the trustees have no liability to contribute to its assets and no personal responsibility for settling its debts and liabilities.
The Charity is run by its Trustees, who make decisions at board meetings. There are no staff to delegate management of the Charity to.
New trustees are made aware of their responsibilities upon induction and are encouraged to keep up to date with developments in the sector by accessing relevant training material.
The trustees' r eport was approved by the Board of Trustees.
Bishop V Manukyan
Trustee Dated: 31 January 2022
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THE FRIENDS OF ETCHMIADZIN
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE FRIENDS OF ETCHMIADZIN
I report to the trustees on my examination of the financial statements of The Friends of Etchmiadzin (the charity) for the year ended 31 March 2021.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of The Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do 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 financial statements to be reached.
Bridget Culverwell Moore Northern Home Counties Limited
First Floor 73-75 High Street Stevenage Hertfordshire SG1 3HR
Dated: 31 January 2022
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THE FRIENDS OF ETCHMIADZIN
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2021 | 2020 | ||
| Notes | £ |
£ | |
| Income from: | |||
| Donations and legacies | 2 | 430,178 | 609,837 |
| Expenditure on: | |||
| Charitable activities | 3 | 327,305 | 608,719 |
| Net income for the year/ | |||
| Net movement in funds | 102,873 | 1,118 | |
| Fund balances at 1 April 2020 | (851) | (1,969) |
|
| Fund balances at 31 March 2021 | 102,022 | (851) | |
| The statement of financial activities includes all gains and losses recognised in the year. |
All income and expenditure derive from continuing activities.
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THE FRIENDS OF ETCHMIADZIN
BALANCE SHEET
AS AT 31 MARCH 2021
| Notes Current assets Debtors 8 Cash at bank and in hand Creditors: amounts falling due within one year 9 Net current assets/(liabilities) Income funds Unrestricted funds |
2021 £ 78,259 26,841 105,100 (3,078) |
£ 102,022 102,022 102,022 |
2020 £ - 649 649 (1,500) |
£ (851) (851) (851) |
|---|---|---|---|---|
The financial statements were approved by the Trustees on 31 January 2022
Bishop V Manukyan Trustee
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THE FRIENDS OF ETCHMIADZIN
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021
| 2021 Notes £ Cash flows from operating activities Cash generated from/(absorbed by) operations 11 Net cash used in investing activities Net cash used in financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year |
2020 £ £ 26,192 - - 26,192 649 26,841 |
£ (682) - - (682) 1,331 649 |
|---|---|---|
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THE FRIENDS OF ETCHMIADZIN
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
1 Accounting policies
Charity information
The Friends of Etchmiadzin is a Charitable Incorporated Organisation.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's Trust Deed, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
The trustees have considered the impact of the Covid-19 pandemic on the charity's activities and do not believe there to be any change in the going concern status of the charity.
1.3 Charitable funds
Unrestricted funds are those general funds received and utilised in furtherance of the objects of the charity. Funds where the capital is held to generate income for charitable purposes and cannot itself be spent are accounted for as endowment funds.
1.4 Incoming resources
Donations, legacies and similar incoming resources are recognised once the charity has entitlement to the income, there is sufficient certainty or receipt and so it is probable that the income will be received, and the monetary value of income can be measured reliably.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
1.5 Resources expended
Expenditure is recognised in the statement of financial activities on an accrual basis as a liability is incurred. Expenditure includes any VAT which can not be fully recovered.
The expenditure on charitable activities includes grants made, governance costs and support costs. Included within this category are costs of complying with constitutional and statutory requirements.
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THE FRIENDS OF ETCHMIADZIN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
1 Accounting policies
(Continued)
Applications for grants are considered by the Trustees from university students of Armenian origin, as well as Armenian educational, cultural and social organisations. Priority is given by the Trustees to undergraduate students. They are accounted for on an accruals basis where the third party has a reasonable expectation that they will receive the grant.
1.6 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less .
1.7 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.
2 Donations and legacies
| Donations and legacies | ||
|---|---|---|
| Unrestricted | Unrestricted | |
| funds | funds | |
| 2021 | 2020 | |
| £ | £ | |
| Donations and gifts | 343,957 | 488,150 |
| Gift Aid reclaimed | 86,221 | 121,687 |
| 430,178 | 609,837 | |
| Charitable activities | ||
| 2021 | 2020 | |
| £ | £ | |
| Music for the Genocide campaign | 430 | - |
| Grant funding of activities (see note 4) | 325,297 | 607,219 |
| Share of governance costs (see note 5) | 1,578 | 1,500 |
| 327,305 | 608,719 | |
| Grants payable | ||
| 2021 | 2020 |
|
| £ | £ |
|
| Religious grants | 321,297 | 599,219 |
| Educational grants | 4,000 | 8,000 |
| 325,297 | 607,219 |
3 Charitable activities
4 Grants payable
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THE FRIENDS OF ETCHMIADZIN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
5 Support costs
| Support costs Governance costs £ £ Independent examiner fees - 1,578 - 1,578 Allocated to: Charitable activities - 1,578 |
2021 Support costs Governance costs £ £ £ 1,578 - 1,500 1,578 - 1,500 1,578 - 1,500 |
2020 £ 1,500 1,500 1,500 |
|---|---|---|
6 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
7 Employees
There were no employees during the year.
8 Debtors
| Amounts falling due within one year: Other debtors 9 Creditors: amounts falling due within one year Accruals and deferred income |
2021 £ 78,259 2021 £ 3,078 |
2020 £ - 2020 £ 1,500 |
|---|---|---|
10 Related party transactions
There were no disclosable related party transactions during the year (2020 - none) .
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THE FRIENDS OF ETCHMIADZIN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
| 11 Cash generated from operations Surplus for the year Movements in working capital: (Increase) in debtors Increase/(decrease) in creditors Cash generated from/(absorbed by) operations 12 Analysis of changes in net funds The charity had no debt during the year. |
2021 £ 102,873 (78,259) 1,578 26,192 |
2020 £ 1,118 - (1,800) (682) |
|---|---|---|
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