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2024-04-05-accounts

Charity number 265418

COPTIC ORTHODOX CHURCH FOUNDATION

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

YEAR ENDED 5 APRIL 2024

COPTIC ORTHODOX CHURCH FOUNDATION

FOR THE YEAR ENDED 5 APRIL 2024

Contents
Page
Legal and Administrative Information 1
Report of the Trustees 2 - 6
Independent Auditor’s Report 7- 9
Statement of Financial Activities 10
Balance Sheet 11
Statement of cash flows 12
Notes forming part of the Financial Statements 13 - 23

COPTIC ORTHODOX CHURCH FOUNDATION

Page 1

CHARITY INFORMATION

Trustees Dr I H Tadros
Mr M Neoman
Dr M G Mikhail
Mr N Boutros
Mr M George
Dr O K Morris - Resigned 1 April 2024
Dr G Hanna
Dr N Raphael
Custodian Trustees Mr N Boutros
Mr M George
Dr I H Tadros
Registered Charity Number 265418
Contact address 41 Woodlands Avenue
New Malden
Surrey
KT3 3UH
Auditors TC Group
The Courtyard
Shorham Road
Upper Beeding
Steyning
West Sussex
BN44 3TN
Bankers HSBC PLC
79 Piccadilly
London W1V 5RA
Barclays Bank PLC
London Corporate Banking
Strand
NatWest Bank PLC
55 Kensington High Street
London W8 52G

COPTIC ORTHODOX CHURCH FOUNDATION

Page 2

REPORT OF THE TRUSTEES FOR YEAR ENDED 5 APRIL 2024

The Trustees present their report along with the financial statements of the charity for the year ended 5 April 2024. The financial statements have been prepared in accordance with the accounting policies set out on pages 13 to 15 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 Financial Reporting Standard applicable in the UK and Republic of Ireland.

Objectives and Activities

The object of the Foundation is to promote the Coptic Orthodox Church in the United Kingdom and the Republic of Ireland. In furtherance of this object the Trustees may provide and maintain places of public worship carry out religious services, pay the priests salaries and hold religious and other meetings in connection with the Coptic Orthodox Church.

The Coptic Church is a member of “Churches Together in Britain and Ireland” and also an active member of “The Orthodox Oriental Churches Council”, together with the Armenian, Eritrean, Ethiopian, Indian, and Syrian churches in Great Britain. The church is also a member of the “Kensington Council of Churches” which is made up of the different churches in Kensington.

Coptic Orthodox Diocese of London

St. Mark Coptic Church in London is part of the Coptic Orthodox Diocese of London.

Summary of the main achievements of the charity

The Church celebrates the Divine Liturgy 5 days a week with two liturgies every Sunday.

The Trustees have paid due regard to the public benefit guidance as published by the Charity Commission. The youths of the church run “City Mission” offering food to the homeless in the streets of London.

During the year, the youths of the church attended and organised conferences, retreats and trips in the UK and abroad.

The church has sports activities for the youth and has football and basketball teams which play and compete against teams of other Coptic churches in the UK.

Performance of fundraising activities against objectives

During the year, Saint Mark Church completed the majority of the work which started in May 2019 of building a basement under the church and is now used for various activities of the church.

COPTIC ORTHODOX CHURCH FOUNDATION REPORT OF THE TRUSTEES - CONTINUED

Page 3

FOR YEAR ENDED 5 APRIL 2024

Investment performance against objectives

The income from the investment properties was similar to the previous year, and most of the properties were occupied during the year.

Financial Review

The statement of financial activities is set out on page 10 and shows the result of the year.

The Foundation incurred costs in furtherance of its objects of £507,894 (2023: £642,076) and cost of generating funds of £71,971 (2023: £49,918). After taking into account these expenses and other management and administrative expenses of £188,763 (2023: £117,583) the net incoming resources for the year were £202,753 (2023: £176,753), the investment properties were not revalued this year and the net movement of funds for the year was £201,555 (2023: £234,645).

At 5 April 2024, as shown on the balance sheet on page 11, the Foundation has net assets of £8,022,112 (2023: £7,820,557), which were mainly held in fixed assets as shown on notes 9 and 10 and on bank deposits and current accounts.

The charity’s principal sources of funds

The charity’s main source of funding were the donations received from its members in the form of standing orders, cheques, bank transfers and church collection and also the income from rented properties.

The charity’s expenditure

The expenditure during the year was incurred in maintaining the church and making it available to the public to use for worship; the payment of the priest’s salaries and expenses; the provision of Sunday schools to teach the children the faith of the church and to provide help to the needy in the community.

Reserves policy

The Trustees aim to keep in reserves at any point of time three months’ worth of expenditure to cover unplanned emergency church expenses, including repair to church building and other church properties. The amount of reserves held at the year-end was £8,022,112 (2023: £7,820,557) of which £413,070 (2023: £445,142) are regarded as free reserves, after allowing for funds tied up in tangible fixed assets and bank loans secured on some of those assets. The free reserves achieve the reserves aim.

Investment policy and objectives

The Trustees’ investment powers are governed by the Trust Deed, which permits the Charity’s funds to be invested in properties, any cash investments and chattels as they see fit.

The Trustees have considered the most appropriate policy, in order to spread the Charity’s risk, is to invest in properties and in a number of bank account with different banks.

COPTIC ORTHODOX CHURCH FOUNDATION REPORT OF THE TRUSTEES - CONTINUED

Page 4

FOR YEAR ENDED 5 APRIL 2024

Risk management

The main risks which may face the charity are:

  1. Reduction in donations from the congregation:

The charity relies on donations from a large number of donors; this reduces the risk of huge fluctuations in the income from donations.

  1. Reduction of rental income from investment properties:

  2. The charity has a number of properties handled by different agents and in different parts of London and the risk that more than one property is vacant at any time is small.

  3. Internal control risks:

Internal control risks are minimized by the implementation of procedures and controls for receiving and paying cash and cheques.

Future plans

The charity will carry on using the new church basement, for Sunday Schools and other activities of the church, as well as trying to generate income from renting it out during the week as a nursery or other suitable user.

Description of charity’s trusts

The charity was formed on 22 December 1971 as an incorporated trust, registered with the Charity Commission, registration number 265418, and is governed by the Charities Act 2011 and its Trust deed dated the 22 December 1971.

Controlling party

The Coptic Orthodox Church Foundation is managed by the Church Council. No individual has overall control.

Trustee selection methods

The trustees are chosen by members of the Council and appointed by His Eminence the Archbishop of The Coptic Church in London.

Names of the charity trustees:

The Trustees who served during the year were as stated below:

Mr M Neoman Dr M G Mikhail Dr I H Tadros Mr M George Dr O K Morris – Resigned 1 April 2024 Dr G Hanna Mr N Boutros Dr N Raphael

COPTIC ORTHODOX CHURCH FOUNDATION REPORT OF THE TRUSTEES - CONTINUED

Page 5

FOR YEAR ENDED 5 APRIL 2024

Names of the trustees holding title to property belonging to the charity

Dr I H Tadros Mr MI George Mr N Boutros

The Church Council

The Church Council, who manages the charity, consists of the Fathers of the Church, the Charity Trustees and the following Church Members, who were chosen by the Fathers and the Trustees and were appointed by His Eminence The Archbishop of the Coptic Church in London

Name Date appointed Mr Emad Elias 1 October 2019 Mr Ehab Roufael 6 June 2023 Ms Manal Fouad 6 June 2023 Mr Mina Nabil 6 June 2023 Mr Mina Tafik 6 June 2023

Policies and procedures adopted for the induction and training of trustees and council members

The trustees and council members are members of the church and as such are familiar with the practical work of the charity. New trustees and council members are given training by existing trustees on:

The charity’s organisational structure and any wider network with which the charity works

The Foundation is an indivisible part of the Coptic Orthodox Church in Egypt which has as its Supreme Head, the Pope of Alexandria and derives its spiritual authority to function from the Holy Council of the Coptic Orthodox Patriarchate in Cairo, Egypt, such authority cannot be changed, altered, modified or revoked. The Coptic Orthodox Archbishop of London is appointed by the Holy Synod of the Coptic Orthodox Church by written decree over the area known as the Diocese of London which includes this charity.

Decision making

The Council of the Coptic Orthodox Church Foundation, holds meetings at least four times in the year to take decisions on all matters concerning the administration of the charity. Decisions on the church spiritual services to the congregation are taken by His Eminence the Archbishop of London and the priests of the church.

Funds held as custodian trustees on behalf of others

The charity holds an account with HSBC Bank on behalf of the Patriarchate of the Coptic Orthodox Church in Egypt, which has as one of its objects to offer aid to the poor in Egypt and worldwide. The funds are kept in a separate bank account from the charity’s own bank accounts. Instructions on any payment from the account are only given by His Holiness the Pope of Alexandria .

The charity also holds an account with HSBC on behalf of Saint Mary and Pope Kyrillos VI Coptic Orthodox Church, a charity registered in England and Wales whose objects are to advance the religion of the Coptic Orthodox Church. The funds are kept in a separate bank account from the charity’s own bank accounts. Instructions for the bank account are received from the trustees of SMPK.

COPTIC ORTHODOX CHURCH FOUNDATION REPORT OF THE TRUSTEES - CONTINUED

Page 6

FOR YEAR ENDED 5 APRIL 2024

Statement of trustees’ responsibilities in relation to financial statements

The trustees are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the charity’s financial activities during the year and of its financial position at the end of the year. In preparing financial statements giving a true and fair view, the trustees should follow best practice and:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations and the provisions of the trust deed.

The trustees are responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Board of Trustees and signed on behalf of the board on ……………….. ….

………………………………. Nabeel Boutros Trustee

COPTIC ORTHODOX CHURCH FOUNDATION

Page 7

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE COPTIC ORTHODOX CHURCH FOUNDATION

Opinion

We have audited the financial statements of Coptic Orthodox Church Foundation (the ‘charity’) for the year ended 5 April 2024 which comprise Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We have been appointed as auditors under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements 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 relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, 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 inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

COPTIC ORTHODOX CHURCH FOUNDATION

Page 8

INDEPENDENT AUDITOR’S REPORT

TO THE TRUSTEES OF THE COPTIC ORTHODOX CHURCH FOUNDATION

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ responsibilities set out on page 6, the trustees 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 charity’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 charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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 an auditor’s report 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 (UK) 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.

A further description of our responsibilities for the audit of the financial statements is provided on the Financial Reporting Council’s website at http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the group and its management.

Our approach was as follows:

COPTIC ORTHODOX CHURCH FOUNDATION

Page 9

INDEPENDENT AUDITOR’S REPORT

TO THE TRUSTEES OF THE COPTIC ORTHODOX CHURCH FOUNDATION

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

This report is made solely to the charity’s trustees as a body, in accordance with the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Mark Cummins FCCA (Senior Statutory Auditor) for and on behalf of TC Group Statutory Auditors Office: Steyning, West Sussex Date:

COPTIC ORTHODOX CHURCH FOUNDATION Page 10

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2024

Unrestricted Restricted Total Total
Funds Funds 2024 2023
2024 2024
Note £ £ £ £
Income 3
Donations 406,685 301,548 708,233 756,742
Charitable activities 3,782 - 3,782 1,790
Investment income 259,366 - 259,366 227,241
Other incoming resources - - - 557
--------------- -------------- --------------- ---------------
669,833 301,548 971,381 986,330
--------------- -------------- --------------- ---------------
Expenditure 4
Raising funds 71,971 - 71,971 49,918
Charitable activities 507,894 - 507,894 642,076
Other 188,763 - 188,763 117,583
--------------- -------------- --------------- ---------------
768,628 - 768,628 809,577
--------------- -------------- --------------- ---------------
Net income (98,795) 301,548 202,753 176,753
Other gains 17 (1,198) - (1,198) 57,892
--------------- -------------- --------------- ---------------
Net movements in funds (99,993) 301,548 201,555 234,645
Transfer between funds 18,602 (18,602) - -
Total funds brought forward 19 7,710,435 110,122 7,820,557 7,585,912
--------------- -------------- --------------- ---------------
Total funds carried forward 19 7,629,044 393,068 8,022,112 7,820,557
--------------- -------------- --------------- ---------------

COPTIC ORTHODOX CHURCH FOUNDATION Page 11

BALANCE SHEET AT 5 APRIL 2024

2024
2023
Note £
£
Fixed assets
Tangible assets 9 5,824,751
5,834,939
Investments 10 3,650,000
3,650,000
-------------------
-------------------
Total fixed assets 9,474,751
9,484,939
Current assets
Debtors 11 133,731
136,573
Cash at bank and in hand 12 1,180,641
1,261,322
-------------------
-------------------
1,314,372
1,397,895
Total current assets
Creditors: Amounts falling due
within one year 13.1 (557,916)
(936,806)
-------------------
-------------------
Net current assets 756,456
461,089
-------------------
-------------------
Total assets less current 10,231,207
9,946,028
liabilities
Creditors: Amounts falling due after
one year 13.2 (2,209,095)
(2,125,471)
-------------------
-------------------
Total net assets 8,022,112
7,820,557
-------------------
-------------------
Funds of the Charity
Restricted funds 18 393,068
110,122
Unrestricted funds 17 7,629,044
7,710,435
-------------------
-------------------
Total funds 8,022,112 7,820,557
-------------------
-------------------

The financial statements were approved and authorised for issue by the Board on ………………. and signed on behalf of the board by

……………………………….

Nabeel Boutros Trustee

The notes on pages 13 to 23 form part of these financial statements.

Page 12

COPTIC ORTHODOX CHURCH FOUNDATION

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 5 APRIL 2024

Note
Cash flows from operating
activities
21
Cash flows from investing
activities
Income from property investments
Expenses of property investments
Purchase of fixed assets
Net cash provided by investing
activities
Cash flows from financing
activities
Proceeds of bank loans
Repayment of bank loans
Change in cash in the year
Cash at 6 April 2023
Change in cash due to exchange rate
movements
Cash at 5 April 2024
12		 2024
£
£
(119,123)
259,366
(71,971)
(18,602)
-------------------
168,793
115,239
(244,392)
__
(129,153)
-------------------
(79,483)
1,261,322
(1,198)
-------------------
1,180,641
-------------------		 2023
£
£
716,135
227,241
(49,918)
(1,646,248)
-------------------
(1,468,925)
597,252
(88,728)
__
508,524
-------------------
(244,266)
1,447,696
57,892
-------------------
1,261,322
-------------------

COPTIC ORTHODOX CHURCH FOUNDATION

Page 13

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2024

Basis of preparation

1.1

Basis of accounting

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) ‘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). Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

1.2 Going concern

The trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern. They are of the opinion that donations from the church’s large congregation and the income from the investment properties will cover any future liabilities.

1.3 Change of accounting policy and change of accounting estimates

The accounts present a true and fair view and the accounting policies adopted are those outlined in note 1.1 and no changes to the accounting estimates have occurred in the year.

1.4 Material prior year errors

No material prior year errors have been identified in the reporting period.

2. Accounting policy

2. 1 Income and debtors

Recognition of income

Income is recognised in the period in which the charity is entitled to receive and the amount can be measured with reasonable certainty. All voluntary income which comprises of donations, collection and church boxes is included in income on a receivable basis. Investment income, derived from fixed asset investments, is accounted for on amounts receivable in the year.

Tax reclaim on donations and gifts

Gift Aid receivable is included in income when there is a valid declaration from the donor .

Income from membership subscriptions

Membership contributions received in the nature of a gift are recognised in Donations.

Investment gains and losses

The value of the investment properties is kept the same as the previous year, as it is in the trustees’ views that there has not been significant change in the market value of similar properties from the previous year (in 2023 no change).

Debtors

The charity has debtors which are measured at settlement amounts less any trade discounts.

COPTIC ORTHODOX CHURCH FOUNDATION

Page 14

NOTES FORMING PART OF THE FINANCIAL STATEMENTS – CONTINUED FOR THE YEAR ENDED 5 APRIL 2024

.

2.2 Expenditure and liabilities Liability recognition

Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out resources and the amount of obligation can be measured with reasonable certainty.

Resources expended

Resources expended are included in the Statement of Financial Activities on an accrual’s basis inclusive of any irrecoverable VAT.

Charitable activities

Direct charitable expenditure includes all staff costs, property and other expenditure directly related to the charitable activities of the Foundation.

Governance and support cost

Support costs have not been allocated between governance costs and other costs. Governance costs comprise all costs involving public accountability of the charity and its compliance with regulation and good practice.

Support costs include central functions.

Creditors

The charity has creditors which are measured at settlement amounts less any trade discounts.

Foreign currency translation

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to Statement of Financial Activities.

Taxation

The charity is a registered charity and as such its income and gains falling within the Income Tax Act 2007 are exempt from corporation tax to the extent that they are applied to its charitable objectives.

Realised gains

Realised gains are included in the Statement of Financial Activities in the year of disposal.

Fund accounting

Restricted Funds

The restricted funds wholly relate to donations made specifically towards the cost of the church’s basement project.

2.3 Assets

Capitalisation policy

A unit of property that has an economic useful life that extends beyond 12 months is treated as a fixed asset. Assets are capitalised on an item by item basis. Assets not deemed to have a useful life beyond 12 months are expensed as incurred.

Tangible fixed assets for use by the charity

Tangible fixed assets other than freehold land are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life as follows:

Freehold buildings - 2% straight line Office equipment - 15% reducing balance

Fixtures, alterations, fittings & equipment

Building under construction

Page 15

COPTIC ORTHODOX CHURCH FOUNDATION

NOTES FORMING PART OF THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 5 APRIL 2024

____________

Fixed asset investments

Investment properties are included in the balance sheet at their open market value. No depreciation is provided on the properties. Net gains and losses on disposal and revaluation of investments are charged or credited to the SOFA.

Critical accounting judgement and key sources of estimation uncertainty

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Valuation of Investment Property

The investment properties are carried in the financial statements at their market value. Each year the Trustees review the valuation of the assets and use market values to determine if a revaluation is required.

3. Analysis of income

Unrestricted Restricted Total funds Total funds
income income 2024 2023
funds funds
£ £ £ £
Donations and legacies
Donation and gifts 367,282 286,779 654,061 702,573
Gift Aid 39,403 14,769 54,172 54,169
--------------- --------------- -------------- --------------
Total 406,685 301,548 708,233 756,742
Charitable activities
Book shop sales 931 - 931 565
Family meeting 2,851 - 2,851 1,225
--------------- --------------- -------------- --------------
Total 3,782 - 3,782 1,790
Investment income
Interest income 10,840 - 10,840 4,425
Rental and leasing income 248,526 - 248,526 222,816
-------------- --------------- -------------- --------------
Total 259,366 - 259,366 227,241
Other incoming resources
Other - - - 557
--------------- --------------- -------------- --------------
Total - - - 557
--------------- --------------- -------------- --------------
Total income 669,833 301,548 971,381 986,330
--------------- --------------- -------------- --------------

In 2023 £123,705 of the total income was attributable to restricted funds with the balance of £862,625 attributable to non-restricted funds.

COPTIC ORTHODOX CHURCH FOUNDATION

Page 16

NOTES FORMING PART OF THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 5 APRIL 2024

4. Analysis of expenditure

Unrestricted
Restricted		 Total funds Total funds
funds
funds		 2024 2023
£
£		 £ £
Expenditure on raising funds
Rent collection, property repairs and
maintenance charges 71,971
-		 71,971 49,918
---------------
---------------		 -------------- --------------
Total expenditure on raising funds 71,971
-		 71,971 49,918
Expenditure on charitable activities
Church and community services 132,452
-		 132,452 148,198
Staff costs 246,926
-		 246,926 230,493
Property expenses 99,726
-		 99,726 231,690
Depreciation of tangible assets 28,790
-		 28,790 31,695
---------------
---------------		 -------------- --------------
Total expenditure on charitable
activities 507,894
-		 507,894 642,076
Other expenditure
Secured loan interest 171,680
-		 171,680 103,255
Governance costs 17,083
-		 17,083 14,328
---------------
---------------		 -------------- --------------
Total other expenditure 188,763
-		 188,763 117,583
---------------
---------------		 -------------- --------------
Total expenditure 768,628
-		 768,628 809,577
---------------
---------------		 -------------- --------------
In 2023 all expenditure was attributable to unrestricted funds
Governance costs 2024 2023
Auditor’s remuneration 11,400 9,420
Legal & professional costs 2,166 1,440
Office costs 3,517 3,468
-------------- --------------
17,083 14,328

5. Funds received as agent

The charity has agreed to administer a bank account on behalf of the Patriarchate of the Coptic Orthodox Church in Egypt. At the balance sheet date funds of £1,253,041 (2023: £1,237,921) which has not been included in the accounts figures.

COPTIC ORTHODOX CHURCH FOUNDATION Page 17 NOTES FORMING PART OF THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 5 APRIL 2024

______________

6. Paid employees

6.1 Staff costs 2024 2023
£ £
Salaries and wages 222,974 206,209
Social security costs 20,802 19,616
Pension costs 3,150 4,667
--------------- ---------------
Total staff costs 246,926 230,492
======== ========

One employee earned between £60,000 and £70,000 during the year (2023: one).

6.2 Average head count in the year 2024 2023
Number Number
Priests 4 4
======== ========

7. Volunteers

The charity has a number of unpaid volunteers, who help in the various needs of the church, including administration, cleaning and preparing the churches before and after the services.

8. Auditor’s remuneration

The audit fees for the year is £11,400 inclusive of VAT (2023: £8,820).

COPTIC ORTHODOX CHURCH FOUNDATION Page 18 NOTES FORMING PART OF THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 5 APRIL 2024

______________

9. Tangible fixed assets

Land and Office Fixtures Fixtures Buildings Total
Buildings Equipment Fittings Fittings & under
Freehold Church Equipmen Construction
t
£ £ £ £ £ £
Cost
At 6 April 2023 915,920 194,965 125,810 216,097 5,090,515 6,543,307
Additions - - - - 18,602 18,602
_ _ _ __ ___ __
At 5 April 2024 915,920 194,965 125,810 216,097 5,109,117 6,561,909
------------------ ------------- --------------- --------------- -------------------- ------------------
Depreciation
Straight Reducing Reducing Reducing No
Basis Line balance balance balance Depreciation
Rate 2% 15% 10% 20%
At 6 April 2023 281,274 85,187 125,810 216,097 - 708,368
Charge for the 12,323 16,467 - - - 28,790
year
------------------ ------------- --------------- --------------- --------------- ------------------
At 5 April 2024 293,597 101,654 125,810 216,097 - 737,158
------------------ ------------- --------------- --------------- ------------------ ------------------
Net book value
At 5 April 2024 622,323 93,311 - - 5,109,117 5,824,751
------------------ ------------- --------------- --------------- ------------------ ------------------
At 5 April 2023 634,646 109,778 - - 5,090,515 5,834,939
========= ======= ======== ======= ========= =========

The cost value of Freehold Land and Buildings pledged as security for bank loans as disclosed in note 13 is £722,711.

COPTIC ORTHODOX CHURCH FOUNDATION Page 19 NOTES FORMING PART OF THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 5 APRIL 2024

______________

10. Fixed assets investments

Freehold Long Leasehold Total
Property Properties
£ £ £
Fair value:
At 6 April 2023 1,850,000 1,800,000 3,650,000
------------------ ------------------ ------------------
At 5 April 2024 1,850,000 1,800,000 3,650,000

The properties are valued by the Trustees, based on the advertised prices of similar properties on the market in the same area and the current condition of the properties. In the opinion of the Trustees, the cost of professionally valuing the assets to include a value in the accounts outweighs the benefits to the user of the accounts.

There are no restrictions on the ability to realise investment property.

There are no contractual obligations for the purchase, construction or development of investment property or for repairs, maintenance or enhancements.

11. Debtors

2024 2023
£ £
Prepayments and accrued income 10,041 13,209
St Mary & Pope Kyrillos Coptic Church 6,257 65,591
Other debtors 117,433 57,773
--------------- -------------
133,731 136,573
======= ======
12. Cash at bank and in hand
2024 2023
£ £
Cash at bank 1,180,641 1,261,322
======== ========

COPTIC ORTHODOX CHURCH FOUNDATION NOTES FORMING PART OF THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 5 APRIL 2024

Page 20

13. Creditors and accruals
13.1 Amounts falling due within one year
2024 2023
£ £
Secured bank loan 59,682 104,175
Taxation and social security 9,594 5,788
Accruals and deferred income 483,526 820,996
Other creditors 5,114 5,847
--------------- -------------
557,916 936,806
======= ======
13.2 Amounts falling due after one year
2024 2023
£ £
NatWest Bank loan re basement 1,887,938 1,799,537
Loan taken on 7 August 2012 with HSBC for the purchase of
house number 66 Broadwalk, Hounslow secured by the property - 15,005
and all existing securities and any future security held by the
Bank.
Loan taken on 6 October 2017 with NatWest to refinance the 311,157 300,929
loan from HSBC Bank plc taken in 2008 secured by a first legal
charge over 36 Cromwell Road
Funds from church members repayable within 5 years 10,000 10,000
--------------- -------------
Total 2,209,095 2,125,471
========= =========

COPTIC ORTHODOX CHURCH FOUNDATION NOTES FORMING PART OF THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 5 APRIL 2024

Page 21

14. Financial Instruments

2024 2023
£ £
Carrying amount of financial assets
Debt instruments measured at amortised cost 123,690 123,364
-------------------- --------------------
Carrying amount of financial liabilities
Financial liabilities measured at amortised cost 2,757,417 3,056,489
--------------------- ---------------------

15. Operating Lease Commitments

As lessor:

At the year end, the charity had contracted with tenants, under non-cancellable operating leases, for the following future minimum lease payments:

2024 2023
Amounts receivable: £ £
Less than one year 90,158 72,426
Between one and five years - 99,551
--------------- ---------------
90,158 171,977
======== ========

16. Trustees and related parties

16.1 Transactions with trustees

The charity does not have any transactions with the trustees (2023: Nil).

There have been donations from the trustees, the amounts of which cannot be quantified.

16.2 Trustees’ remuneration and benefits

The trustees did not receive any remuneration or benefits in the year (2023: Nil).

16.3 Trustees expenses

The trustees were not reimbursed for any expenses during the year (2023: Nil).

16.4 Related Party Transaction disclosure

During the year the following transactions with Saint Mary and Pope Kyrillos VI Coptic Orthodox Church (SMPK), a charity over which there is significant influence by virtue of persons on the board of Coptic Orthodox Church Foundation having more than one-fifth of the voting power of SMPK.

  1. Interest of £2,945 was reimbursed by SMPK to Foundation (2023; £4,690)

  2. Repayment of the loan to purchase the property £62,278 (2023; £62,278)

At the balance sheet date, £6,257 (2023: £65,591) was owed by SMPK which has been included in Debtors.

  1. Donation of £3,600 was made to a related party Aghapy TV Limited.

16.5 Key Management Personnel

The charity considers its Trustees to be its Key Management Personnel who are not remunerated for their services.

COPTIC ORTHODOX CHURCH FOUNDATION

Page 22

NOTES FORMING PART OF THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 5 APRIL 2024

17. Unrestricted Funds

Balance at Incoming Expenditure Other Transfer Balance at
6 April Resources Gains/(losses) between 5 April
2023 funds 2024
£ £ £ £ £ £
General reserve 7,710,435 669,833 (768,628) (1,198) 18,602 7,629,044
funds
========= ======== ======== ======== ======= =========
Balance at Incoming Expenditure Other Transfer Balance at
6 April Resources Gains/(losses) between 5 April
2022 funds 2023
£ £ £ £ £ £
General reserve 7,475,790 862,625 (809,577) 57,892 123,705 7,710,435
funds
========= ======== ======== ======== ======= =========

The general reserve fund represents those funds which are unrestricted and not designated for other purposes.

18. Restricted Funds

8. Restricted Funds
Balance at 6 Income Expenditure Transfer Balance at
April 2023 between funds 5 April 2024
£ £ £ £ £
Basement Project 110,122 301,548 - (18,602) 393,068
========= ======== ======== ======== ========
Balance at 6 Income Expenditure Transfer Balance at
April 2022 between funds 5 April 2023
£ £ £ £ £
Basement Project 110,122 123,705 - (123,705) 110,122
========= ======== ======== ======= ========

Basement Project – The basement project restricted fund consists of money donated towards the cost of building a basement underneath St Mark’s Church. All transfers out of the fund are to cover the cost of fixed asset additions of the building of the basement.

19. Analysis of net assets between funds

2024 Fixed assets Net current Non-current Total
assets liabilities 2024
£ £ £ £
Unrestricted fund 9,474,751 363,388 (2,209,095) 7,629,044
Restricted fund - 393,068 - 393,068
------------------ ------------------ ----------------------- ------------------
9,474,751 756,456 (2,209,095) 8,022,112
========= ======== =========== =========
2023 Fixed assets Net current Non-current Total
assets liabilities 2023
£ £ £ £
Unrestricted fund 9,484,939 350,967 (2,125,471) 7,710,435
Restricted fund - 110,122 - 110,122
--------------------- ------------------- ------------------------- ------------------
9,484,939 461,089 (2,125,471) 7,820,557
========== ========= ============ =========

COPTIC ORTHODOX CHURCH FOUNDATION

Page 23

NOTES FORMING PART OF THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 5 APRIL 2024

20. Post Balance Sheet Events

There were no post balance sheet events.

21. Reconciliation of net income to net cash flow from

operating activities

2024 2023
£ £
Net income
(as per statement of financial activities) 201,555 234,645
Adjustments for:
Depreciation charges 28,790 31,695
Loan interest paid 168,284 -
Income from investments (259,366) (227,241)
Investment costs 71,971 49,918
Loss/(Profit) on foreign exchange 1,198 (57,892)
Decrease in debtors 2,842 88,655
Increase/(decrease) in creditors (334,397) 596,355
------------- -------------
Net cash provided by operating activities (119,123) 716,135
------------- -------------

COPTIC ORTHODOX CHURCH FOUNDATION

The following pages are for the information of the trustees only and do not form part of the statutory financial statements.

COPTIC ORTHODOX CHURCH FOUNDATION DETAILED INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 5 APRIL 2024

2024 2023
£ £ £ £
INCOMING RESOURCES
Donations and incoming resources
Membership contributions 115,455 114,359
Collection and church boxes 132,611 166,409
Donations 460,167 708,233 475,974 756,742
-------------------- --------------------
Church activities
Family meeting 2,851 1,225
Church bookshop 931 3,782 565 1,790
-------------------- --------------------
Investment income
Income from rented property 248,526 222,816
Bank interest 10,840 4.425
Miscellaneous income - 259,366 557 227,798
-------------------- -------------------- -------------------- --------------------
Total incoming resources 971,381 986,330
======== ========
RESOURCES EXPENDED
Expenditure on raising funds
Investment property expenses
Property management fees 22,768 23,926
Property services charges 24,168 8,873
Repairs and maintenance 19,010 15,498
Insurance 6,025 1,456
Council Tax - 71,971 165 49,918
-------------------- --------------------
Charitable activities
Church and community services
London Diocese 60,000 55,689
Donations to other churches 19,070 3,600
Social Services 19,335 36,977
Sunday school and education 1,901 8,606
Church candles, and oil 2,703 2,253
Hire of church halls for Sundays 26,557 25,151
Council Tax 1,223 1,364
Visiting Bishops and Priests 1,663 132,452 14,558 148,198
-------------------- --------------------
Staff costs
Salaries 222,974 206,209
Social security costs 20,802 19,616
Stake holder pension 3,150 246,926 4,667 230,492
-------------------- --------------------
Property expenses
Rates and water 218 641
Light and heat 62,401 17,541
Insurance 17,193 19,668
Repairs and maintenance 9,215 190,815
Cleaning 5,071 828
Miscellaneous 5,628 99,726 2,197 231,690
-------------------- --------------------
Depreciation of tangible assets 28,790 31,695
------------------------ -----------------------
Total expenditure on charitable activities 507,894 642,075
------------------------ ------------------------

COPTIC ORTHODOX CHURCH FOUNDATION

DETAILED INCOME AND EXPENDITURE ACCOUNT - CONTINUED FOR THE YEAR ENDED 5 APRIL 2024

2024 2023
£ £ £ £
Other expenditure
Secured loan interest 171,680 103,255
Governance costs
Accountancy fees and auditor’s remuneration 12,126 9,420
Legal and professional 1,440 1.440
Office costs 3,517 17,083 3,468 14,328
-------------------- -------------------- -------------------- --------------------
Total other expenditure 188,763 117,583
-------------------- --------------------
Total expenditure 768,628 809,576
======== ========
Net income/(expenditure) 202,753 176,753
Exchange difference gain/(loss) (1,198) 57,892
-------------------- --------------------
Net movement in funds for the year 201,555 234,645
Funds balances brought forward at 6 April 2023 7,820,557 7,585,912
----------------------------- -----------------------------
Funds balances carried forward at 5 April 2024 8,022,112 7,820,557
========== ==========