## **ETHIOPIAN ORTHODOX CHURCH** ## **ST. MARY OF ZION** # **CHARITY REGISTRATION NUMBER 282910** ## **TRUSTEES REPORT AND FINANCIAL** ## **STATEMENTS** **FOR THE YEAR ENDED 31 AUGUST 2023** **ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION** **FOR THE YEAR ENDED 31 AUGUST 2023** ## **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| 1 | P a g e ## **ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION** ## **TRUSTEES ANNUAL REPORT** ## **FOR THE YEAR ENDED 31 AUGUST 2023** ## **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. 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 48 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 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 and work commenced which is intended to focus efforts on making full use of the building as soon as resources permit. ## **3 Structure, Governance and Management** The EOTCSMZ is constituted as a trust. The governing body of the EOTCSMZ is the parish council, the 2 | P a g e ## **ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION** ## **TRUSTEES ANNUAL REPORT** ## **FOR THE YEAR ENDED 31 AUGUST 2023** 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: - Clergy Committee - Finance Committee - Funding Application Committee - Multimedia Committee - Building Maintenance Committee - Fundraising Committee - Sembete (Festival) Events Committee - St. Mary Mehabre - Evangelism Committee - St. Tekle Haymanot Youth Association - St. Gabriel Mehabre 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. There has been a significant uplift in Fundraising Committee activities, focussed on generating the funds required for the redevelopment of the church at 229 Lower Clapton Road. Key events included the cultural event in March, a sports event in May and again in July. Additionally Barnabas Aid International provided a grant of £100,000 towards the project. ## **5 Financial Review** There has been an increase in general ministry income, from £66,849 to £79,015 mostly due to increased collections and rent pledges. Restricted fund income has increased from £49,650 to £301,020 due to several successful fundraising events, the successful application for a grant from Barnabas Aid International and a general increases in building donations, sponsorship and shop sales following the announcement that the building work would re-commence. There has been a small increase in expenses relating to charitable activities, from £37,285 to 3 | P a g e ## **ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION** ## **TRUSTEES ANNUAL REPORT** ## **FOR THE YEAR ENDED 31 AUGUST 2023** £39,844, due to increased church rent costs. Expenses relating to restricted funds have increased from £44,589 to £246,879, due to the revised development plan commencing as well as increased fundraising expenses and mortgage interest costs. The cash reserves have increased slightly in the last year, from £126,877 to £205,381. This is due to a substantial increase in fund-raising activities which has exceeded the development costs incurred in the year. The mortgage liability has continued to reduce, falling from £273,485 to £250,199. **This report was approved by the trustees and signed on their behalf by Mr. Trevor Field (Melaka Sion Habte Mariam):** **----- Start of picture text -----**
Signed............................................................Trustee Date...........................................
**----- End of picture text -----**
4 | P a g e **THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION** ## **STATEMENT OF FINANCIAL ACTIVITIES** ## **FOR THE YEAR ENDED 31 AUGUST 2023** |**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**|**2023**
**Unrestricted**
**Funds**
**£**
79,015
-
**79,015**
39,844
-
**39,844**
39,171
-
-
254,983
**294,154**|**2023**
**Restricted**
**Funds**
**£**
-
301,020
**301,020**
-
246,879
**246,879**
54,141
-
(330,000)
726,148
**450,289**|**2023**
**Total Funds**
**£**
79,015
301,020
**380,035**
39,844
246,879
**286,723**
93,312
-
(330,000)
981,131
**744,443**|**2022**
**Total Funds**
**£**
66,849
49,650
**116,499**
37,285
44,589
**81,874**
34,625
-
-
946,506
**981,131**| |---|---|---|---|---| 5 | P a g e **THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION** ## **BALANCE SHEET** ## **AS AT 31 AUGUST 2023** |Notes
**Fixed Assets**
Tangible fixed assets
**4**
**Current Assets**
Debtors
**5**
Cash at bank and in hand
**6**
**Total current assets**
Creditors: amounts falling due within one year
**7**
Net current assets
**Total assets less current liabilities**
Creditors: amounts falling due after one year
**8**
**Net assets**
**Funds of the charity**
Restricted Funds
**9**
Unrestricted Funds
**9**
Property Revaluation Reserve
**9**
**Total Funds**|**2023**
**£**
800,000
705
205,381
**206,086**
(35,915)
170,171
**970,171**
(225,728)
**744,443**
350,289
294,154
100,000
**744,443**|**2022**
**£**
1,130,000
2,148
126,877
**129,025**
(29,093)
99,032
**1,229,932**
(248,801)
**981,131**
296,148
254,983
430,000
**981,131**| |---|---|---| **The notes on pages 7-11 form part of these accounts** **The trustees declare that they have approved the above accounts which are signed on their behalf by Mr Guy Tombs (Tekle Wolde):** Signed............................................................Trustee Date........................................... 6 | P a g e **THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION** **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 AUGUST 2023** ## **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. 7 | P a g e **THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION** ## **NOTES TO THE FINANCIAL STATEMENTS (continued)** ## **FOR THE YEAR ENDED 31 AUGUST 2023** |**2. Incoming Resources**
**General Ministry Income**
Dues - Cash
Dues - Standing Orders
St Mary Mehabre income
Collections & Dues
Prayers
Memorial
Funeral
Baptism
Tithes
Clergy Fund
Annual/ Church Outings
Candle Box Collection
Sponsorship/ Pledges
Sunday School
Miscellaneous Income
**Total General Ministry Income**
**Project Income**
Building Pledges
Fundraising Committee
Auction
PayPal
Building Fund Donations
Bank Interest – Project Account
200 Names
Grant - Barnabas Aid International
Entrance Shop
Event Income
Building Project Sponsorship
Ecclesiastical Items
Miscellaneous Income
**Total Project Income**
**Total Incoming Resources**|**Unrestricted**
**Funds**
**2023**
**£**
1,294
24,347
1,310
28,177
300
1,060
-
1,210
2,079
910
1,178
108
13,517
3,409
115
**79,015**
-
-
-
-
-
-
-
-
-
-
-
-
-
**-**
**79,015**|**Restricted**
**Funds**
**2023**
**£**
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
**-**
6,038
597
9,315
8,598
24,921
1,246
16,172
100,000
40,818
65,729
24,840
2,500
246
**301,020**
**301,020**|**Total**
**Funds**
**2023**
**£**
1,294
24,347
1,310
28,177
300
1,060
-
1,210
2,079
910
1,178
108
13,517
3,409
115
**79,015**
6,038
597
9,315
8,598
24,921
1,246
16,172
100,000
40,818
65,729
24,840
2,500
246
**301,020**
**380,035**|**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**| |---|---|---|---|---| 8 | P a g e **THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION** ## **NOTES TO THE FINANCIAL STATEMENTS (continued)** ## **FOR THE YEAR ENDED 31 AUGUST 2023** |**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
Clergy Expenses
**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**
**2023**
**£**
28,910
-
-
481
620
1,900
645
355
1,897
1,304
1,677
-
360
877
-
-
818
**39,844**
-
-
-
-
-
-
-
-
**-**
**39,844**|**Restricted**
**Funds**
**2023**
**£**
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
**-**
18,594
48,594
746
167,064
1,574
10,307
-
-
**246,879**
**286,724**|**Total Funds**
**2023**
**£**
28,910
-
-
481
621
1,900
645
355
1,897
1,304
1,677
-
360
877
-
-
818
**39,844**
18,594
48,594
746
167,064
1,574
10,307
-
-
**246,879**
**286,723**|**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**| |---|---|---|---|---| 9 | P a g e **THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION** ## **NOTES TO THE FINANCIAL STATEMENTS (continued)** ## **FOR THE YEAR ENDED 31 AUGUST 2023** ## **4. Tangible Fixed Assets** |**Tangible Fixed Assets**
Property Cost/ Valuation brought forward
Revaluation
**Total Property Valuation carried forward**|**2023**
**£**
1,130,000
(330,000)
**800,000**|**2022**
**£**
1,130,000
-
**1,130,000**| |---|---|---| The charity owns a property at 229 Clapton High Road which cost £700,000 in 2011. The latest independent valuation indicates this has a market value of £800,000. |**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|**2023**
**£**
705
**705**
**2023**
**£**
139,374
3,590
56,121
4,196
174
1,926
**205,381**
**2023**
**£**
158
11,286
-
24,471
**35,915**
**2023**
**£**
225,728
**225,728**
26,867
92,565
106,296|**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| |---|---|---| The acquisition of the property at 229 Clapton High Road was part funded by a 20-year repayment mortgage from HSBC. 10 | P a g e **THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION** **NOTES TO THE FINANCIAL STATEMENTS (continued)** ## **FOR THE YEAR ENDED 31 AUGUST 2023** ## **9. Movement of Funds** |**At 1 September**
**2022**
**£**
Unrestricted Funds
254,983
Restricted Funds
296,148
Property Revaluation Reserve
430,000
**Total**
**981,131**|**Incoming**
**resources**
**£**
79,015
301,020
-
**380,035**|**Outgoing**
**resources**
**Revaluation**
**adjustment**
**£**
**£**
(39,844)
-
(246,879)
-
-
(330,000)
**(286,723)**
**(330,000)**|**At 31 August**
**2023**
**£**
294,154
350,289
100,000
**744,443**| |---|---|---|---| 11 | P a g e INDEPENDENT EXAMINERS REPORT **TO THE TRUSTEES OF THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION** ## **FOR THE YEAR ENDED 31 AUGUST 2023** 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 2023, which are set out on the attached pages 5-11. ## **Respective responsibilities of trustees and examiner** The charity's trustees, are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is required for this year. The charity is preparing accounts and I 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 Act,  to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the 2011 Act, - to state whether particular matters have come to my attention. ## **Basis of independent examiner’s report** My examination was carried out in accordance with general Directions given 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 fair’ view and the report is limited to those matters set out in the statement below. ## **Independent examiner’s statement** In connection with my examination, no matter has come to my attention which gives me reasonable cause to believe that in, any material respect, that the requirements to: - keep accounting records in accordance with section 130 of the 2011 Act; and - prepare accounts which accord with the accounting records and comply 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. Signed................................................................... Date................................................. Sam Tanyi: FAAT. MIFS. MCIE 13 Arkley Road London E17 7PD 12 | P a g e