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2022-08-31-accounts

ETHIOPIAN ORTHODOX CHURCH

ST. MARY OF ZION

CHARITY REGISTRATION NUMBER 282910

TRUSTEES REPORT AND FINANCIAL

STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2022

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 2022

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

Status Date Elected
Board of 23 May 1981
Trustees Mr. Reginald Henry (Amde Mariam) Keyholder (deceased)
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: FAAT. 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 47 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.

During the year the church has lost faithful members of the church who have departed this world. Memorial services took place to commemorate the life of Amde Mariam (one of the churches founders) and the faithful who are no longer with us.

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 building is already used for a number of church activities including meetings and classes, but work is required to make it fully suitable for the all the required activities. 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. A re-design has recently taken place which is intended to focus efforts on making full use of the building as soon as resources permit.

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ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION

TRUSTEES ANNUAL REPORT

FOR THE YEAR ENDED 31 AUGUST 2022

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.

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 initiated by various committees. This includes events such as auctions of religious items including icons, church outings, 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.

Although the COVID pandemic has continued to have some impact, church activities are now returning to normal, with the Fundraising Committee activities see growth as a result including increased entrance shop sales and income from church outings.

5 Financial Review

There has been an increase in general ministry income, from £49,372 to £66,849 mostly due to increased collections since services have returned to normal. Restricted fund income has increased from £35,806 to £49,650 due to shop sales and fundraising recovering since lockdown.

There has been a small increase in expenses relating to charitable activities, from £27,794 to £37,285, primarily due to increased church rent costs. Expenses relating to restricted funds have decreased from £110,801 to £44,589, due to the main development work stopping, with a focus on ~~the re-design.~~

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ETHIOPIAN ORTHODOX CHURCH ST. PAARY OF ZON TRU5TEE5 ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022 The cash reser4es have increased slwty In the last year. from £117.387 to £126.877. Thls Is due to a combination of reduced project expenditure and income from church collections and fund-raising activrties returning to their nornial level¥ now that the effects of the COVIO 19 pandemic are reducing. The mort8a8e liability has continued to reduce. f•llin8 from £298.331 to £273.485. TNS rewt ¥Ms •pwoved by thetnmtets and s*ned ¢Jn thelr beh•ll by Mr. Trevor Held IMel•ka Slon H•bt• Mirlaml: .¥.P....Xzd........ ?oZ2

THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 AUGUST 2022

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		 2022
Unrestricted
Funds
£
66,849
-
66,849
37,285
-
37,285
29,564
-
-
225,419
254,983		 2022
Restricted
Funds
£
-
49,650
49,650
-
44,589
44,589
5,061
-
-
721,087
726,148		 2022
Total Funds
£
66,849
49,650
116,499
37,285
44,589
81,874
34,625
-
-
946,506
981,131		 2021
Total Funds
£
49,372
35,806
85,178
27,794
110,801
138,595
(53,417)
-
-
999,923
946,506

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THE EfHIOPIAN ORThODOX CHURCH ST. MARYOF ZION BALA14CE SHEEr AS AT 31 AUGusf 21ll2 2021 Notes Fixed Assets Tangible fixed assets i.tsO.f I,￿0.( Debtors Cash at bank and in hand 2.148 126.877 117.387 iJ025 117387 Credbtors: amounts falllng dtse wlthln one year Net current assets 129.0931 99.032 128,5281 88,859 Tot•1 •sMts l•y curr•nt MabMllle• 1219.932 1218A59 Credltors: Imounts falllng due after one ye•r 1248.8011 1272,3531 981.131 Funds of th• dmrlty Restricted Funds Unrestricted Funds Property Re¥•lualion ReseNe 296.148 254,983 430.IM) 291,087 225,419 430.(KM) Total ￿Thd$ 981,Ui The notes on p•ys 7.11 f¢mi p•rt •c¢4XW Tombs ITekl• Wold•): Trustee

THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2022

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 2022

2. Incoming Resources
General Ministry Income
Dues - Cash
Dues - Standing Orders
St Mary Mehabre income
Collections & Dues
Fundraising Committee
Memorial
Funeral
Baptism
Tithes
Clergy Fund
Annual/ Church Outings
Candle Box Collection
Sponsorship/ Pledges
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
2022
£
2,782
22,476
1,520
22,192
-
615
849
1,640
3,966
420
3,660
59
6,514
156
66,849
-
-
-
-
-
-
-
-
-
-
-
-
-
66,849		 Restricted
Funds
2022
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,030
60
1,365
260
8,200
38
14,573
-
21,424
-
1,700
-
49,650
49,650		 Total
Funds
2022
£
2,782
22,476
1,520
22,192
-
615
849
1,640
3,966
420
3,660
59
6,514
156
66,849
2,030
60
1,365
5
7,992
38
14,573
-
11,166
-
1,700
-
49,650
116,499		 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

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THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2022

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
Funeral Expenses
Repair and Maintenance
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
2022
£
20,875
1,200
283
306
642
2,560
3,089
187
1,790
209
1,762
-
380
442
3,515
45
37,285
-
-
-
-
-
-
-
-
-
37,285		 Restricted
Funds
2022
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11,742
31,251
625
100
871
-
-
-
44,589
44,589		 Total Funds
2022
£
20,875
1,200
283
306
497
2,560
3,089
187
1,790
205
1,322
-
380
442
3,515
45
37,285
11,742
31,251
625
100
871
-
-
-
44,589
81,874		 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

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THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2022

4. Tangible Fixed Assets
Property Cost/ Valuation brought forward
Total Property Valuation carried forward		 2022
£
1,130,000
1,130,000		 2021
£
1,130,000
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
Prepaid expenses and accrued income
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
Accrued expenses
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		 2022
£
2,148
2,148
2022
£
94,684
9,389
5,225
14,567
730
2,282
126,877
2022
£
137
2,172
2,100
24,684
29,093
2022
£
248,801
248,801
25,935
86,305
136,561		 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

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

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THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2022

9. Movement of Funds

At 1 September
2021
£
Unrestricted Funds
225,419
Restricted Funds
721,087
Total
946,506		 Incoming
resources
£
66,849
49,650
116,499		 Outgoing
resources
£
37,285
44,589
81,874		 At 31 August
2022
£
254,983
726,148
981,131

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INDEPENDENT EXAMINERS REPORT TO THE TRUSTEES OF THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION FOR THE YEAR ENDED 31 AUGusf 2 I report to the trustees of the Ethioplan OrtI￿d0X Church St. Mary of t￿n {Charity Nurn￿r 281910) on tho accounts for the year ended 3tst August 2022. whith are Set out on the attathed pa8es 5-11. The charlty's trustees, are responsible fwthe preparation of the accounts. The ¢harWs trustees considertht an audit is not requlred for thls year under SeCt￿n 14412) of the Charities Act 2011 (the 2011 Act) and that an Sndependent examination 15 required for year. The tharity is p￿parIng accounts and l arn qualified to ur￿ertake the Exarnination bein8 a qualEfied member of a550ciation of Charities Independent Examiners It is my responsibility to: examine the accounts under sertion 145 of the 2011 Art, to follow the procedures laid down In the general Directions given ty the CharFty Commi55ion (under serth?n 145151{b) of the 2011 ACL to State whether partkular matters have come to my attention. My examinatsn was carrted out in accordan￿ wlth general Dlrertions given by the Charity Commlssion. An examlnation includes a revTrew of the accounting records kept by the d)afity and a comparlson of the accounts preseTrted with records. ￿ also iKludes consideTrtion of any Un￿Ual Items or d15d05ures in the accounts, and seeklng explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the eviden￿ that would be required in an audit, arKI consequently no oplnlon Is given as to whether accounts present a *rue and falrf view and the reFQrt is limited to those matters set out in the Statem￿ below. In connttuon wtth my examination. no matter has come to my atterrtlon whlch glve5 rne reasonable cause to belleve that in, any material respecL that the requirements to: keep accounting records In accordan￿ with sectlon 130 of the 2011 ACL. and prepare accounts whkh accord wlth the ac￿Unt[nE records and comply wth the accounting requlrements of the 2011 Act. have not been rneL" orto which, in my opinion, attention should be drawn In order to enable a proper understanding of the accowbts to be reathed. Sam Tanyi. MLIBF. MAaE 13 Arkley Road London E17 7PD 12 1 Page