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2021-08-31-accounts

ETHIOPIAN ORTHODOX CHURCH

ST. MARY OF ZION

CHARITY REGISTRATION NUMBER 282910

TRUSTEES REPORT AND FINANCIAL

STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION

FOR THE YEAR ENDED 31 AUGUST 2021

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 2021

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. Reginald 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 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 46 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 project was presented for discussion at the annual general meeting. It was then formally approved by a meeting of the parish council and also by a meeting of the trustees. Planning permission for the proposed development is in place and some work has been completed, however further work is required to bring the structure up to a standard that will enable it to be used by members.

3 Structure, Governance and Management

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 Secretary, Assistant General Secretary, Treasurer and Assistant Treasurer. Selected members of the parish council are also trustees of the charity.

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ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION

TRUSTEES ANNUAL REPORT

FOR THE YEAR ENDED 31 AUGUST 2021

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 includes 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.

The COVID pandemic has resulted in a number of events were cancelled, although services have been operating since the end of the main lockdown period.

5 Financial Review

There has been a decrease in general ministry income, from £58,075 to £49,372 however this is largely due to gift aid reclaims not yet being made in 2021 compared with 2020 which included two years claims (totalling £8,290). Project income has decreased from £113,660 to £35,806 due to the effects of COVID 19 reducing the number of services and preventing a number of planned fundraising events.

There has been a small increase in expenses relating to charitable activities, from £25,292 to £27,794, primarily due to increased church rent costs and storage costs. Expenses relating to project activities have decreased from £145,426 to £110,801, due to the main development work stopping, with a focus on making the building weather-tight.

The work on the building project means that cash reserves have fallen slightly in the last year, from £195,007 to £117,387. The COVID 19 pandemic and related lockdown meant that additional fundraising that was planned to take place to fund the project expenses could not take place. The mortgage liability has continued to reduce, falling from £320,453 to £298,331.

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ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION TRusfEES APINUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2021 Although EOTCSMZ does not currently have sufficient re5er4es to complete the full renovatlon, the building 15 already being used for a number of church activities Including meetin8$ and classes and investigations are underway into the feasibility of limited improvements that could be funded by existing resources that would enable member5 to make better use of the church buildlng. Th15 report was apwoved by the trustees and SI￿ed on thelr behall by Mr K•lth S•ffluels (Kes Halle Maskell: Slgned.............. ..Trustee

THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 AUGUST 2021

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		 2021
Unrestricted
Funds
£
49,372
-
49,372
27,794
-
27,794
21,578
-
-
203,841
225,419		 2021
Restricted
Funds
£
-
35,806
35,806
-
110,801
110,801
(74,995)
-
-
796,082
721,087		 2021
Total Funds
£
49,372
35,806
85,178
27,794
110,801
138,595
(53,417)
-
-
999,923
946,506		 2020
Total Funds
£
58,075
113,660
171,735
25,292
145,426
170,718
1,017
-
-
998,906
999,923

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THE ETHIOPIAN ORTHODOX CHURCH ST. IAARY OF ZION BALANCE SHEET AS AT 31 AUGUST 2021 2021 2020 Note5 Fixed Assets Tangible fixed assets 1.130.(KXJ I,tso,c Cwrent Assets Debtors Cash at bank and in hand 10,047 195,(X)7 117.387 Total curTefit assets 117,387 205,054 Credftors: amounts fallin8 due within one year Net current assets 128,5281 88,859 136,8011 168,253 Totsl assets less currert Ilabllllles 1218,859 1.298,253 Creditors: amounts falling due after one year 1272.3531 1298.3301 Net assets 999,923 Funds of the charlty Restricted Funds Unrestricted Funds Property Revèluation Reser¥e 291.087 225.419 430.(KMJ 366.082 203.841 430,LM)Q Tot*1 Funds 999.923 The notes on pages 7.11 fcffrn part of thtse a¢<ounts The trustees dedare that they hm approv¢d the abDve 4¢c(xmts vknlth are sl¢ned on thelr I￿alf by Mr Guy T¢Mnbs (Tekle Wolde): Si8ned..-.... ..Trustee

THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

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 2021

2. Incoming Resources
General Ministry Income
Dues - Cash
Dues - Standing Orders
St Mary Mehabre income
Collections & Dues
Gift Aid
Fundraising Committee
Memorial
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
200 Names
Sembete Committee income
Entrance Shop
Event Income
Building Project Sponsorship
Ecclesiastical Items
Total Project Income
Total Incoming Resources		 Unrestricted
Funds
2021
£
980
23,848
1,260
13,586
-
184
410
1,210
4,119
360
-
660
416
1,701
638
49,372
-
-
-
-
-
-
-
-
-
-
-
-
-
49,372		 Restricted
Funds
2021
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,542
543
60
2,185
4,545
10
20,282
209
3,230
50
1,900
1,250
35,806
35,806		 Total
Funds
2021
£
980
23,848
1,260
13,856
-
184
410
1,210
4,119
360
-
660
416
1,701
638
49,372
1,542
543
60
2,185
4,545
10
20,282
209
3,230
50
1,900
1,250
35,806
85,178		 Total
Funds
2020
£
960
29,515
1,420
10,421
8,290
951
340
660
2,440
380
220
-
401
-
2,077
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

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THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

3. Resources Expended
Charitable Activities
Church Rent
Diocese
Fundraising Committee Expenses
Ministry Insurance
Miscellaneous expenses
Annual/Church Outings
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
Legal/Professional Fees
Utility/ Security Expenses
Building Works
Building Insurance
Fundraising Events Expenses
Building Repairs
Miscellaneous
Total Project Activities
Total Resources Expended		 Unrestricted
Funds
2021
£
12,259
2,400
998
404
11
2,385
3,345
195
1,752
107
1,852
625
365
892
-
-
-
204
-
27,794
-
-
-
-
-
-
-
-
-
27,794		 Restricted
Funds
2021
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10,725
4,467
603
88,766
5,024
27
835
350
110,801
110,801		 Total Funds
2021
£
12,259
2,400
998
404
11
2,385
3,345
195
1,752
107
1,852
625
350
892
-
-
-
-
-
27,794
10,725
4,467
603
88,766
5,024
27
835
351
110,801
138,595		 Total
Funds
2020
£
10,500
2,400
-
350
-
-
2,669
2,561
1,726
-24
124
1,000
350
1,066
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

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THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

4. Tangible Fixed Assets
Property Cost/ Valuation brought forward
Building improvements written off
Total Property Valuation carried forward		 2021
£
1,130,000
-
1,130,000		 2020
£
1,206,648
(£76,648)
1,130,000

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.

5. Debtors
Other debtors
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
Cash in hand
Total Cash at bank and in hand
7. Creditors: amounts falling due within one year
Trade Creditors
Accrual
Provision
Mortgage Loan Account
Total current creditors
8. 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		 2021
£
-
-
2021
£
94,646
6,811
3,055
6,392
3,628
2,855
117,387
2021
£
85
365
2,100
25,978
28,528
2021
£
272,353
272,353
26,886
86,403
159,064		 2020
£
10,047
10,047
2020
£
76,870
14,217
3,855
91,900
4,903
3,262
195,007
2020
£
9,228
3,350
2,100
22,123
36,801
2020
£
298,330
298,330
25,978
83,486
188,866

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THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

The acquisition of the property at 229 Clapton High Road was part funded by a 20-year repayment mortgage from HSBC.

9. Movement of Funds

At 1 September
2020
£
Unrestricted Funds
203,841
Restricted Funds
796,082
Total
999,923		 Incoming
resources
£
49,372
35,806
85,178		 Outgoing
resources
£
27,794
110,801
138,595		 At 31 August
2021
£
225,419
721,087
946,506

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INDEPENDENT EXAMINERS REPORT TO THE TRUSTEES OF THEETHIOPIAN ORTHODOX CHURCHST. MARY OFZION FOR THE YEAR ENDED 31 AUGUST 2021 I report to the trustees of the Ethiopian Orthodox Church St. Mary of Zion (Charity Number 282910} on the accounts for the year ended 31st August 2021. which are set out on the attached pages 5-11. Respective responslbllltles of trustees and examlner The charity's trustees, are responsible for the preparation of the accounts. The charity's trustees consider that an audit 15 not required for this year under section 144121 of the Chartties Att 2011 Ithe 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 settion 145 of the 2011 Act, to follow the procedures laid down in the general Directions given by the Charity Commission lunder section 14515llbl of the 2011 Act, to state whether particular matters have come to my attention. Basi5 of independent examlnerfs report My examination was carried out in accordance with general Directions gwen by the Charity Commission. 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 explanations 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 report is limited to those matters set out in the statement below. Independent examinerfs statement In connection with my examination. no matter has come to my attention which give5 me reasonable cause to believe that in, any material re5pert. that the requirements to: keep accounting records in accordance with sertion 130 of the 2011 Art: and prepare accounts which accord with the accounting records and compty with the accounting requirements of the 2011 Act; have not been met- or to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. The Ethiopians have always consulted when in doubt. Signed. Date.. Sam Tanyi, FMA4t, MLI8F. MACIE 13 Arkley Road London £17 7PD 12 1 Page