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2020-08-31-accounts

ETHIOPIAN ORTHODOX CHURCH

ST. MARY OF ZION

TRUSTEES REPORT AND FINANCIAL

STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

(CHARITY REGISTRATION NUMBER 282910)

ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION

FOR THE YEAR ENDED 31 AUGUST 2020

CONTENTS

Page
Trustees’ annual report 2 – 4
Statement of Financial Activities 5
Balance sheet 6
Notes to the financial statements 7 – 11
Independent examiner’s report 12

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ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION

TRUSTEES ANNUAL REPORT

FOR THE YEAR ENDED 31 AUGUST 2020

1 Reference and Administrative Details

The principal administrative details are included below:

Charity 282910 Number Charity Ethiopian Orthodox Church St Mary of Zion Name Registered 61 Coopers Lane Address London E10 5DG

Board of Status Date Elected Trustees Mr. Reginal Henry (Amde Mariam) Keyholder 23 May 1981 Mr. Keith Samuels (Kes Haile Maskel) Priest/ Keyholder 30 April 2008 Mr. Trevor Field (Melaka Sion Habte Mariam) Priest in Charge 30 April 2008 Mr. Guy Tombs (Tekle Wolde) Financial Advisor 26 November 2018 Mr. Tafari Lewis (Gebre Mariam) (resigned effective 1 September 2020) Technical Advisor 30 April 2008 Legal Status Registered with Charities Commission Independent Sam Tanyi: FMAAT, MIFS, MCIE Examiner 13 Arkley Road London E17 7PD

2 Objectives and Activities

Ethiopian Orthodox Church St. Mary of Zion (EOCSMZ) is a branch church Of the Ethiopian Orthodox Tewahedo (EOC), based in London UK. EOCSMZ has been catering for the spiritual, social, cultural and educational needs of her membership for the last 45 years. The EOCSMZ was registered as a charity on 23rd May 1981 with the objective of the propagation of the Gospel of Christ by advancing the EOTC faith and, in particular, charitable works within the Greater London, Africa and the Caribbean Islands. Ordained priests and deacons of the EOCSMZ conduct baptisms, marriages, funerals and other services in accordance with canon law. A key objective is to support families and their children by educating them on the orthodox way of life.

A key project is the renovation of the property at 229 Lower Clapton Road into a place of worship/community centre in the traditional Ethiopian Orthodox style. The property was acquired in 2011 and planning permission for the proposed development is in place. Although a contractor had been appointed, and work commenced in June 2019, a number of problems arose including concerns over the quality of the building work, which resulted in the dismissal of the contractor and project manager. After the year end the EOCSMZ obtained quotations with a view to appointing a new contractor however the additional costs of rectifying the substandard work means that it does not currently have the required resources. As a result the project is currently on hold apart from some work to secure the site and roof work to prevent deterioration of the structure.

3 Structure, Governance and Management

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ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION

TRUSTEES ANNUAL REPORT

FOR THE YEAR ENDED 31 AUGUST 2020

The EOTCSMZ is constituted as a trust. The governing body of the EOTCSMZ is the parish council, the membership of which includes a chairperson (the priest in charge), vice chairperson, the General Seretary, Assistant General Secretary, Treasurer and Assistant Treasurer. Selected members of the parish council are also trustees of the charity.

Besides the parish council there are other sub-committees that have been established to carry out the aims and objectives of the EOCSMZ, including:

The annual activities and financial status of EOCSMZ are reported to the congregation every year in September. Our parish council also has a bi-annual meeting in March to monitor the half yearly progress. All sub-committees also submit progress reports at these meetings. All trustees, parish council members, committee members as well as priests and deacons are voluntary workers.

New trustees are appointed from the church membership by unanimous vote of the existing trustees. Every three years there is a formal selection committee formed to manage the re-election of parish council members.

4 Achievements and Performance

Our community continues to support all the fundraising drive initiated by various committees. This include events such as auctions of religious items including icons, major donations, sponsorship of key initiatives by members, selling tea, coffee and refreshments from the kitchen after services, an internal shop selling religious items and a church entrance shop which serves the community prior to entering the church before the liturgical service.

Key activities included the Debra Tabor event. A number of other planned events were cancelled owing to the Covid pandemic. The church being rented at the time could not be adapted to enable services during Covid lockdown meaning that services were stopped. More recently EOTC has been able to rent a church that is more suited to holding services during Covid lockdown.

Despite the impact of the Covid pandemic, the overall level of income for 2020 was significantly higher than 2019, primarily due to sponsorship of various aspects of the projects.

5 Financial Review

There has been an increase in general ministry income, from £54,544 to £58,075 however this is largely due to gift aid reclaims for 2019 and 2020 both being included in the 2020 income (totalling £8,290). Project income has increased from £88,566 to £113,660 due to sponsorship of various aspects of the project, particularly the roof and ecclesiastical items.

~~There has been a small reduction in expenses relating to charitable activities, from £31,298 to~~

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ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION TRUSYEES ANNUAL (tEPORT FOA THE YEAR E14DÉD JI AUGU$12010 £2S.284. PriTnarlly due to ￿0￿Ced church renr Costs during lo¢kdown Exgenses ielalinÉ to projeci •¢tivilies have decreased from £149,733 to £ 145,434, dye io combined effecl of the ieducTioTh In the asbestos femediation provislon1£104.0281 and the fighi off ol bulklinq irnprovemeni cosr% The PIOiecr expendilufe thai hatl previobsly been £apitalised relaiin4 io the )rtu31 dèvelopmeni IE 76,64111 has been wrltten oll owlng to the qualily concerfts over the work done meinin8 that the Pfoperty value on the balanie sheet has decreased from (1,206.648 10 £1, 130.CCQ. The work on ihe buildlnl prolert m3ns thai calh reserves have f•llen $116hrty In the last year. frorn £236,576 ro £195,CQ7, howevtrr the additional lund. raisin8 relating to ihe proiecl 5ponsorshlp mean5 thai ihe decline is far smallei than the amount Spent on ihe prolert Ourlni lockdown vbe Ih3rity took advaniage ol ihe Opiion lo halt mortiage itpaymenis lot Ilve monlhs. how¥¢i despite this Ihe mortgaie liability reduced from £331.530 to E320.453 Althou8h EOICSMZ does not iurrently have sulllciént rèserves to fully fund ihe renovation, inve5ti8atK)n5 are knnderway Into èlternativp phasing agpro3che% that pnable Ihe church 10 make use of Ihe church buildlng. Th15 would redu<e rental costs and allow a wider lange til church serwices lo be performed The Kingdom Bènk facilily aifecmeni ihai wa% previOit51y oblainc¢ has explrea, however li is expected thai a similar lacillly will be nc¥oiiaied once Ihe Covid pandpmic IS over Thls report Wai •PWty4ed by the tN61••5 sl•wd on ih•lf bh¥ll by Mi X•lih S•mutli IKes M•ll* M•skell'. Si8Tred. Trusiee D•t .o.i.i........, 4 Ipaie

THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 AUGUST 2020

Notes
Incoming Resources
General Ministry Income
Project Income
Total Incoming Resources
2
Resources Expended
Charitable Activities
Project Activities
Total resources Expended
3
Net Movement in Funds before transfers
Transfers between funds
Other recognised gains/ (losses)
Total Funds Brought Forward
Total Funds Carried Forward
9		 2020
Unrestricted
Funds
£
58,075
-
58,075
25,284
-
25,284
32,791
-
-
171,050
203,841		 2020
Restricted
Funds
£
-
113,660
113,660
8
145,426
145,434
(31,774)
-
-
397,856
366,082		 2020
Total Funds
£
58,075
113,660
171,735
25,292
145,426
170,718
1,017
-
-
568,906
569,923		 2019
Total Funds
£
54,544
88,566
143,110
31,298
149,733
181,031
(37,921)
-
-
606,827
568,906

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THE ETHIOPIAN ORTHODOX CHURCH ST. IAARY OF ZION AIANCE SHEET AS AT 31 AUGUf 2010 1020 2019 AM•d AM•ts Tan8ible fixed wets 1,130,C 1.206.648 Debto Cash at bonk •ftd lft hw 10.047 195,(X17 1,490 236.576 2311166 C1￿110r$.. amounts f•lllw due wliNn one y•ar Net Current •ssets 136,8011 168.253 1125.35SI 111,711 1.298.253 1,319,359 Credltors: arnovnts f•lMry due •fter one ye•r 1298.3JO) 1320,453) 999J2J Restrtcted Funds Unrestricted Funds Property Revaluath￿ Aewr¥e 366.082 203.841 430.IJX) 397.856 171.050 430,C(fl Totsl Funds 999,923 Th• rK>t•s on p•wJ 7.11 lorni p•rt al th•w •c<¢wnts IT•kl• Wdd•): TnAiee 6 Iva¥e

THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

a. Basis of preparation

The financial statements have been prepared on an accruals basis under the historical cost convention, with the exception of property which is included at market value. The financial statements have been prepared in accordance with the Accounting and Reporting by Charities: Statement of Recommended Practice, applicable to charities preparing their accounts in: accordance with the Financial Reporting Standard FRS102.

b. Incoming Resources

Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the Charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.

c. Donations and legacies

Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.

d. Investment income

Interest is included when receivable by the charity.

e. Resources Expended

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. All resources expended are inclusive of irrecoverable VAT.

f. Tangible fixed assets and depreciation

Property is shown at market value and is not depreciated. Other fixed assets costing more than £500, are capitalised and depreciated on a 25% straight line basis.

g. Charitable activities

Charitable expenditure comprises those costs incurred by the Charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

h. Creditors and provisions

Creditors and provisions are recognised where the charity had a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts.

i. Fund accounting

Unrestricted income funds are general funds that are available for use at the trustee's discretion in furtherance of the objectives of the Charity. Restricted funds can only be used for the purpose the fund was established.

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THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

2. Incoming Resources
General Ministry Income
Dues - Cash
Dues - Standing Orders
St Mary Mehabre income
Collections & Dues
St Gabriel Mehabre income
Gift Aid
Fundraising Committee
Memorial
Funeral
Marriage
Baptism
Tithes
Clergy Fund
Bible Studies
Annual/ Church Outings
Candle Box Collection
Donations
Miscellaneous Income
Total General Ministry Income
Project Income
Building Pledges
Fundraising Committee
Auction
PayPal
Building Fund Donations
Bank Interest – Project Account
Text Giving
200 Names
Sembete Committee income
Entrance Shop
White Envelopes
Debra Tabor Event
Other Event Income
Building Project Sponsorship
Ecclesiastical Items
Other income
Total Project Income
Total Incoming Resources		 Unrestricted
Funds
2020
£
960
29,515
1,420
10,421
-
8,290
951
340
-
-
660
2,440
380
220
-
401
-
2,077		 Restricted
Funds
2020
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Total
Funds
2020
£
960
29,515
1,420
10,421
-
8,290
951
340
-
-
660
2,440
380
220
-
401
-
2,077		 Total
Funds
2019
£
2,895
23,918
470
14,900
106
-
3,220
375
100
180
1,180
3,437
1,010
833
800
515
580
25
58,075
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
58,075		 -
7,270
9,171
2,765
4,055
9,959
105
-
25,462
2,517
6,932
-
3,060
-
26,944
15,420
-
113,660
113,660		 58,075
7,270
9,171
2,765
4,055
9,959
105
-
25,462
2,517
6,932
-
3,060
-
26,944
15,420
-
113,660
171,735		 54,544
1,235
3,050
5,850
3,159
20,784
86
95
20,105
3,875
7,162
3,670
-
7,706
11,565
-
224
88,566
143,110

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THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

3. Resources Expended
Charitable Activities
Church Rent
Diocese
Fundraising Committee Expenses
Ministry Insurance
Miscellaneous expenses
Annual/Church Outings
St Tekle Haymanot
Storage
Travel
Utility Bills
Bank charges
Multimedia
Donations to Monastery/ Churches
Accounts/ Audit Expenses
PC Administration
Hall/Venue Hire
Funeral Expenses
Repair and Maintenance
Miscellaneous
Shop Purchases
Total Charitable Activities
Project Activities
Mortgage Interest Payments
Sembete - Welfare Committee costs
Legal/Professional Fees
Utility/ Security Expenses
Building Works
Building Insurance
Fundraising Events Expenses
Building Repairs
Loan Facility Application Fee
Miscellaneous
Total Project Activities
Total Resources Expended		 Unrestricted
Funds
2020
£
10,500
2,400
-
350
-
-
-
2,669
2,561
1,726
-32
124
1,000
-
1,416
900
1,000
79
121
470
25,284
-
-
-
-
-
-
-
-
-
-
-
25,284		 Restricted
Funds
2020
£
-
-
-
-
-
-
-
-
-
8
-
-
-
-
-
-
-
-
-
8
12,357
-
72,705
3,120
43,047
9,386
4,761
-
-
50
145,426
145,434		 Total Funds
2020
£
10,500
2,400
-
350
-
-
-
2,669
2,561
1,726
-24
124
1,000
-
1,416
900
1,000
79
121
470
25,292
12,357
-
72,705
3,120
43,047
9,386
4,761
-
-
50
145,426
170,718		 Total
Funds
2019
£
13,444
200
2,524
348
230
2,222
106
2,446
2,877
1,725
319
15
-
350
1,138
1,641
1,017
26
670
-
31,298
14,033
50
1,440
729
106,827
4,062
5,891
5,756
10,695
250
149,733
181,031

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THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

4. Tangible Fixed Assets
Property Cost/ Valuation brought forward
Building Improvements in period
Building improvements written off (see note below)
Total Property Valuation carried forward		 2020
£
1,206,648
-
(£76,648)
1,130,000		 2019
£
1,130,000
76,648
-
1,206,648

The charity owns a property at 229 Clapton High Road which cost £700,000 in 2011. Following an independent valuation which took place in 2017, based on the planning permission that had been obtained, this is now showing at market value of £1,130,000. This same valuation envisaged that the combined value of the church and vicarage once all development is completed would be around £2,540,000. Based on this a decision was taken to capitalise development costs. However, owing to the concerns over quality of work done in 2019, project expenditure that had previously been capitalised has now been written off.

5. Debtors
Other debtors
Prepayments
Total debtors
6. Cash at bank and in hand
HSBC BMM A/C
HSBC Current A/C
HSBC Deposit A/C
HSBC Project A/C
Paypal A/C
Petty Cash
Total Cash at bank and in hand
7. Creditors: amounts falling due within one year
Trade Creditors
Accrual
Provision (see note below)
Mortgage Loan Account
Total current creditors		 2020
£
10,047
-
10,047
2020
£
76,870
14,217
3,855
91,900
4,903
3,262
195,007		 2019
£
-
1,490
1,490
2019
£
50,895
5,248
2,610
176,563
1,060
200
236,576
2020
£
9,228
3,350
2,100
22,123
36,801		 2019
£
7,800
350
106,128
11,077
125,355

As a result of investigations during the development work in 2019 a small amount of asbestos was identified in the roof space and it was assumed more asbestos would be present in other parts of the roof. Quotations at that time indicated that this would cost at least £106,128 to remove and a provision was made for this amount. It has subsequently become clear that the asbestos is restricted to just the one area and this can be more easily dealt with. On this basis the provision has been reduced to £2,100.

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THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

8. Creditors: amounts falling due after one year
Creditors: amounts falling due after one year
Mortgage Loan Account
Total long-term creditors
Amounts falling due between one and two years
Amounts falling due between two and five years
Amounts falling due after five years		 2020
£
298,330
298,330
25,978
83,486
188,866		 2019
£
320,453
320,453
22,123
80,667
217,663

The acquisition of the property at 229 Clapton High Road was part funded by a 20-year repayment mortgage from HSBC. During the financial year the charity took advantage of an offer to freeze repayments on this mortgage for 5 months (in order to preserve cash flow during the initial Covid lockdown). However, to ensure that the mortgage is still repaid in the original 20-year term, HSBC has increased the monthly repayments.

9. Movement of Funds

At 1 September
2019
£
Unrestricted Funds
171,050
Restricted Funds
397,856
Total
568,906		 Incoming
resources
£
58,075
113,660
171,735		 Outgoing
resources
£
25,284
145,434
170,718		 At 31 August
2020
£
203,841
366,082
569,923

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INDEPENDENT EXAMINERS REPORT TO THE TRUSTEES OF THEETHIOPIAN ORTHODOX CHURCHST. AIARY OF ZION FOR THE YEAR ENDED 31 AUGUST 2020 l ￿port to the trustees ot the Ethiopian Orthodox Church St. Mary of Zion {Charty Number 282910} on the accounts for the year ended 31st August 2020. which are set out on the attached pages S-10. RespecUve responslbllltles of trustees arKI examlner The charity's trustees, are ￿sponsIb￿ for the preparation of the accountg. The trustee5 con51der that an audlt Is not required for this year under section 144121 of the Charities Act 2011 (the 2011 Act) and that an independent examination is required for this year. The charity is preparing accounts and l am qualified to undertake the Examination being a qualified member of the association of Charities Independent Examiners It is my responsibility to". examine the accounts under section 145 of the 2011 Att. to follow the procedures laid down in the Ber￿rnI Directions given by the Charity Commission (under settion 14515)Ibl of the 2011 Art, to state whether particular matters have come to my attention. Basis of Independent examlnerfs report My examination was carried out in accordano with general Di￿rtionS gNen by the Charity Commlsslon. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanation5 from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit. and consequently no opinion is given as to whether the accounts present a 'true and fairf view and the re￿rt is limited to those matters set out in the statement below. Independent examlnerfs statement In connection with my examination. rK) matter has come to my attentK)n which gNes me fea50nable cause to believe that in. any material respert. that the requirements to.. keep accounting ￿COrdS in accordance with section 130 of the 2011 Act: and prepare accounts which accord wrth the accountin8 ￿COrdS and comply with the accounting requirements of the 2011 Art: have not been met: or to which, in my opinion. attention should be drawn in order to enable a proper understandin8 of the accounts to be ￿ached. Signed...... Date... Sam Tanyi, FMAAt, MLIBF, MACIE 13 Arkley Road London E17 7PD