# **THE ETHIOPIAN ORTHODOX CHURCH** ## **ST. MARY OF ZION** # **CHARITY REGISTRATION NUMBER 282910** ## **TRUSTEES REPORT AND FINANCIAL** ## **STATEMENTS** **FOR THE YEAR ENDED 31 AUGUST 2025** ## **THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION** ## **FOR THE YEAR ENDED 31 AUGUST 2025** ## **CONTENTS** ||**Page**| |---|---| |Trustees’ annual report|2 – 6| |Report of the Auditor|7-9| |Statement of Financial Activities|10| |Balance sheet|11| |Notes to the financial statements|12 – 19| 1 | P a g e **THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION** ## **TRUSTEES ANNUAL REPORT** ## **FOR THE YEAR ENDED 31 AUGUST 2025** ## **1 Reference and Administrative Details** The principal administrative details are included below: Charity Name Ethiopian Orthodox Church St Mary of Zion Registered Address 61 Coopers Lane London E10 5DG Name Status Date Elected Board of Trustees Keith Samuels (Kes Haile Maskel) Priest/ Keyholder 30 April 2008 Trevor Field (Melaka Sion Habte Mariam) Priest in Charge 30 April 2008 Guy Tombs (Tekle Wolde) Financial Advisor 26 November 2018 Pauline Anderson (Wolete Gabreal) Secretary 19 March 2025 Georgia Lewis (Wolete Kristos) Treasurer 19 March 2025 Legal Status Registered with Charities Commission Charity Number 282910 Banker HSBC UK Bank Plc 1 Centenary Square, Birmingham, B1 1HQ Auditor Aamir Qadri - ICS, CAT, BSc, MSc, FCCA Walden Way and Company Ltd Unit A3, Gateway Tower, 32 Western Gateway, London E16 1YL The trustees present their report along with the financial statements of the charity for the year ended 31 August 2025. The financial statements have been prepared in accordance with the accounting policies set out on page 7, and comply with the charity’s trust deed and applicable law. ## **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 50 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. ## **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. 2 | P a g e **THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION** ## **TRUSTEES ANNUAL REPORT** ## **FOR THE YEAR ENDED 31 AUGUST 2025** 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. The development work on the church has progressed significantly over the year, initially funded by two grants from Joseph Rank Trust totalling £35,000 and a major Donkey Tube telethon fundraiser took place which generated gross income of £1,383,560. ## **5 Risk Management** The trustees are responsible for the management of risks faced by the charity. The trustees have assessed the major risks to which the charity is exposed, in particular those relating to the operations and finances of the charity and are satisfied that systems and procedures are in place to mitigate exposure to the major risks. A regular review of the charity’s risk register is undertaken, identifying key risks and the controls in place to manage them. The trustees review this register at least annually. Key risks identified include: - Loss of funding and income volatility, - Dependence on key personnel, - Compliance with regulatory requirements. 3 | P a g e **THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION** **TRUSTEES ANNUAL REPORT** ## **FOR THE YEAR ENDED 31 AUGUST 2025** Contd….. To address these risks, the charity has established a range of controls, including financial controls, regular monitoring of financial performance, and appropriate policies and procedures. The trustees are satisfied that these systems are effective in managing risk. During the year, the charity’s principal risk arose from ongoing church development project, the significant level of restricted fundraising particular, the trustees considered the risk of project cost overruns or delays, reliance on exceptional fundraising income, the need to maintain adequate cash flow to complete the redevelopment and meet liabilities as they fall due, and the importance of ensuring that restricted funds are applied only for their intended purposes and properly accounted for. The trustees also reviewed the adequacy of the charity's financial reporting and accounting controls following the prior period adjustment identified during the year in respect of redevelopment expenditure previously treated as expenditure rather than capitalised. To manage these risks, the trustees operate financial controls and budgeting procedures, monitor cash flow and financial performance regularly, review restricted income and expenditure, oversee mortgage obligations and planned funding needs, and maintain policies and procedures designed to support compliance and sound financial management. The trustees are satisfied that these arrangements are appropriate to the size and nature of the charity and are effective in mitigating the principal risks identified received for that project, the timing of the project expenditure and future funding requirements, the continuing mortgage commitments on the project, and compliance with the financial reporting and regulatory requirements. ## **6 Financial Review** Overall, the charity ran a surplus during the year of £1,414,355 compared with a deficit in the previous year of £94,874. This has arisen because income has increased from £327,831 last year to £1,588,757 this year, at the same time many of the associated expenses (relating to the constructions work) have been capitalised. There has been a small increase in general ministry income, from £80,437 to £102,260. Restricted fund income has however increased significantly from £247,394 to £1,486,497 due to the donkey tube telethon event (which was exceptional). There has been a small increase in expenses relating to charitable activities, from £50,465 to £69,020, primarily due to increased church rent costs. Expenses relating to the construction work are now being capitalised, meaning that restricted fund expenses have decreased from £372,240 to £105,382. The end result is that cash reserves have increased from £50,965 to £693,470. This is needed for the completion of the remaining work on the church development. The mortgage balance continues to reduce and now stands at £199,177 (less than half the £470,000 originally borrowed) and is due to be repaid in early 2031. 4 | P a g e **THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION** **TRUSTEES ANNUAL REPORT** ## **FOR THE YEAR ENDED 31 AUGUST 2025** ## **7 Public benefit** The trustees have complied with their duty under section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit. The charity carries out its purposes for the public benefit by catering for the spiritual needs of the African and Caribbean community in London as well as supporting the wider Ethiopian Orthodox church. The charity delivers public benefit through the advancement of religion by providing regular worship, prayer and pastoral support, by supporting the spiritual, cultural and religious needs of the community, by raising funds towards the development of a permanent community worship space, and by promoting religious education where applicable. The trustees are satisfied that these activities have furthered the charity's objects for the public benefit throughout the year ## **8 Plans for the future** A key project is the renovation of the property acquired in 2011 into a place of worship/community centre in the traditional Ethiopian Orthodox style. Although a great deal of work was done in the year, it could not be fully utilised until the main works were completed after the year end (the opening took place in December 2025). This will provide the charity with more flexibility and enable to charity to offer a wider range of facilities and services to its membership. Over time this is expected to result in an increase in the number of members that the charity serves. ## **9 Reserve policy** The trustees review the charity's reserves on a regular basis to ensure that sufficient funds are available to support the charity's ongoing operations, meet its financial commitments, and provide an appropriate level of financial resilience. Prior to the commencement of the church development project, the trustees' objective was to build reserves sufficient to meet the charity's operational requirements while maintaining an appropriate contingency fund. As the development project is now underway, these reserves are being utilised to fund the project. It is currently anticipated that all funds specifically designated for the project will be fully utilised. Any remaining project costs may need to be financed through loan facilities. At the year end, the level of unrestricted reserves was £353,957 (2024: £320,717). The trustees acknowledge that the current level of reserves is below the long-term target as a direct result of the church development project. Following completion of the project, the trustees intend to rebuild the charity's general reserves to a level considered sufficient to support its ongoing operations, meet unforeseen expenditure, and provide financial stability in fulfilling the charity's objectives. 5 | P a g e **THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION** **TRUSTEES ANNUAL REPORT** ## **FOR THE YEAR ENDED 31 AUGUST 2025** ## **10 Trustees’ responsibilities in relation to the financial statements** The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations. Charity law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to: - select suitable accounting policies and then apply them consistently - observe the methods and principles in the Charities SORP - make judgements and estimates that are reasonable and prudent `o` state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements `o` prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charity (Accounts and Reports) Regulations, and the provisions of the charity’s governing document. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. ## **This report was approved by the trustees and signed on their behalf by:** Signed............................................................Trustee 02 jULY 2026 Date................................ 6 | P a g e **ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION** **FOR THE YEAR ENDED 31 AUGUST 2025** ## **Independent Auditors’ Report to the of The Ethiopian Orthodox Church St Mary of Zion** ## _**Opinion**_ We have audited the financial statements of The Ethiopian Orthodox Church St Mary of Zion (the 'charity') for the year ended 31 August 2025, which comprise the Statement of Financial Activities, Balance Sheet and related notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities Act 2011 and SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice). This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of 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 its trustees as a body, for our audit work, for this report, or for the opinions we have formed. - In our opinion the financial statements: - give a true and fair view of the state of the charity's affairs as at 31 August 2025 and of its results for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Charities Act 2011. ## _**Basis for opinion**_ 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: - the trustees use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or - the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorized for issue. 7 | P a g e **ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION** **FOR THE YEAR ENDED 31 AUGUST 2025** ## **Opinion on other matters prescribed by the Charities Act 2011** In our opinion, based on the work undertaken in the course of the audit: - the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the Trustees' Report has been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** In the light of our knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report. 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: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustee’s remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit. _**Other Matter**_ The financial statements of the charity for the year ended 31 August 2024 were not audited by us. We do not express an opinion or any form of assurance on the corresponding figures presented for the prior period. As disclosed in Note 4 to the financial statements, the charity is undertaking a significant building development project. Construction expenditure incurred during the year and prior financial year 2023 and 2024 has been capitalized as additions to freehold buildings where it met the recognition criteria of the applicable financial reporting framework. The project remained under construction at the reporting date and was completed after the year end. Our opinion is not modified in respect of this matter. ## _**Responsibilities of trustees**_ As explained more fully in the 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 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 based on these financial statements. As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional skepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit 8 | P a g e **ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION** **FOR THE YEAR ENDED 31 AUGUST 2025** - evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the charity's internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. - Conclude on the appropriateness of the trustee’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the charity to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. - Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the charity to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the charity audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Khalid Aamir Qadri (Senior Statutory Auditor) For and on behalf of Walden Way and Company Ltd, Statutory Auditor 02/07/2026 Date:……………………………………. 9 | P a g e **THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION** ## **STATEMENT OF FINANCIAL ACTIVITIES** ## **FOR THE YEAR ENDED 31 AUGUST 2025** |**Notes**
**Income**
General Ministry Income
Project Income
**Total Incoming Resources**
**2**
**Expenditure**
Charitable Activities
Project Activities
**Total Expenditure**
**3**
Net Movement in Funds before transfers
Transfers between funds
Other recognised gains/ (losses)
Prior Year Adjustment
Total Funds Brought Forward
**Total Funds Carried Forward**
**9**|**2025**
**Unrestricted**
**Funds**
**£**
102,260
-
**102,260**
69,020
-
**69,020**
33,240
-
-
-
320,717
353,957|**2025**
**Restricted**
**Funds**
**£**
-
1,486,497
**1,486,497**
-
105,382
**105,382**
1,381,115
-
-
559,443
328,852
2,269,410|**2025**
**Total Funds**
**£**
102,260
1,486,497
**1,588,757**
69,020
105,382
**174,402**
1,414,355
-
-
559,443
649,569
**2,623,367**|**2024**
**Total**
**Funds**
**£**
80,437
247,394| |---|---|---|---|---| |||||**327,831**| |||||50,465
372,240| |||||**422,705**| |||||(94,874)
-
-
-
744,443| |||||**649,569**| The notes on pages 12 to 19 form part of these accounts. 10 | P a g e **THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION** ## **BALANCE SHEET** ## **AS AT 31 AUGUST 2025** |Notes
**Fixed Assets**
Tangible 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**|**2025**
**£**
2,127,155
18,399
693,470
**711,869**
(46,298)
665,571|**2024**
**£**| |---|---|---| |||800,000| |||24,789
50,965| |||**75,754**
(27,318)
48,436| ||**2,792,726**
(169,359)
**2,623,367**
2,169,410
353,957
100,000
**2,623,367**|**848,436**
(198,867)| |||**649,569**| |||228,852
320,717
100,000
**649,569**| The trustees acknowledge their responsibilities for complying with the requirements of the Charities Act with respect to accounting records and preparation of financial statements. The trustees declare that they have approved the above accounts which are signed on their behalf by: Signed............................................................Trustee 2nd July 2026 Date........................................... The notes on pages 12 to 19 form part of these accounts. 11 | P a g e **THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION** **NOTES TO THE FINANCIAL STATEMENTS AS AT 31 AUGUST 2025** ## **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, except that freehold property is stated at market value. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities applicable to charities preparing their accounts in accordance with Financial Reporting Standard 102 (FRS 102), and in compliance with the Charities Act 2011 and the Charities (Accounts and Reports) Regulations 2008. The charity has not included a cash flow statement as it is not required to do so under FRS 102 and the Charities SORP. ## **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. Support and governance cost** Support cost are functions that assist the work of the charity and do not directly undertake charitable activities. Governance costs are the costs associated with complying with statutory requirements of the charity. ## **g. Tangible fixed assets and depreciation** Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised to write off the cost or valuation of assets less their residual value over their useful lives. Other fixed assets costing more than £500, are capitalised and depreciated on a 25% straight line basis. Freehold property and construction work in progress are included in the financial statements at valuation and cost respectively which used for charitable operational purposes. The freehold property was independently valued on 21 December 2022 by Newman Webb and is carried at that valuation. The trustees consider that this valuation remains appropriate at the reporting date. Expenditure directly attributable to the redevelopment of the property is capitalised as construction work in progress. No depreciation is charged on the building during the redevelopment period, as the enhanced asset is not yet complete and available for use. Depreciation will commence once the redevelopment is completed and the asset is brought into use. 12 | P a g e **THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION** **NOTES TO THE FINANCIAL STATEMENTS AS AT 31 AUGUST 2025** ## **h. Impairment of fixed assets** At each reporting date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of the impairment loss(if any). ## **i. 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. ## **j.** ## **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. ## **k. Cash and cash equivalents** Cash and cash equivalents includes cash and short term highly liquid investments with a maturity of three months or less. ## **l. Debtors** Debtors are recognised at the settlement amount due after any discount offered. ## **m. Financial Instruments** The Charity to apply the provisions of ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity’s balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. ## _Derecognition of financial liabilities_ Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled. ## **n. 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. 13 | P a g e **THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION** **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025** ## **o. Judgements and estimates** In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying value 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. In preparing these financial statements, the trustees have exercised judgement in determining whether redevelopment expenditure should be capitalised as tangible fixed assets or recognised as expenditure, whether related income and costs should be treated as restricted funds in accordance with donor intent and grant conditions, and whether the going concern basis of preparation remains appropriate. The principal sources of estimation uncertainty relate to the carrying value of the freehold property, the completeness and measurement of capitalised construction work in progress, the measurement of accrued income and accrued expenditure, and the useful economic lives of equipment used for depreciation. The trustees do not consider that these give rise to material estimation uncertainties requiring further disclosure. ## **p. Going concern** The trustees have assessed the appropriateness of preparing the financial statements on the going concern basis and have considered whether there are any events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. In making this assessment, the trustees have considered the charity's financial position, cash flow forecasts, budgets and projected income and expenditure for a period of at least twelve months from the date of approval of these financial statements. This assessment has included consideration of reasonably possible changes in income and expenditure, the charity's available reserves, anticipated cash flows, and the funding requirements associated with the ongoing church development project, including the potential use of loan facilities if required. The trustees are satisfied that the charity has adequate financial resources to meet its liabilities as they fall due and that appropriate funding arrangements are in place or are expected to be available to support the charity's activities. Having considered all relevant information, the trustees have concluded that there are no material uncertainties that cast significant doubt on the charity's ability to continue as a going concern. Accordingly, they have a reasonable expectation that the charity will continue in operational existence for the foreseeable future and have therefore adopted the going concern basis in preparing these financial statements. ## **q. Prior period Adjustment** During the year, the trustees identified that certain costs incurred on the refurbishment and redevelopment of the charity's freehold property had been incorrectly recognised as expenditure in the Statement of Financial Activities in prior years rather than being capitalised as tangible fixed assets. As these costs relate to works that enhanced the property and provide future economic benefit and service potential to the charity, they meet the criteria for capitalisation under FRS 102 and the Charities SORP. Accordingly, a prior period adjustment has been made. The effect of the restatement is to increase tangible fixed assets and the relevant fund balances. 14 | P a g e **THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025** |**OTES TO THE FINANCIAL STATEMENTS**
**OR THE YEAR ENDED 31 AUGUST 2025**||||| |---|---|---|---|---| |**2. Incoming Resources**
**General Ministry Income**
Dues - Cash
Dues - Standing Orders
St Mary Mehabre income
Collections & Dues
Weddings
Prayers
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
Grant
Entrance Shop
Event Income
Building Project Sponsorship
Donkey Tube Telethon Event
Sunday School (Hamra Brehan)
Miscellaneous Income
**Total Project Income**
**Total Incoming Resources**|**Unrestricted**
**Funds**
**2025**
**£**
1,948
32,034
710
55,570
225
100
155
-
960
3,464
360
1,121
171
5,442
-
**102,260**
-
-
-
-
-
-
-
-
-
-
-
-

-
-
**-**

**102,260**
|**Restricted**
**Funds**
**2025**
**£**
-
-
-
-
-
-
-
-
-
-
-
-
-
-
**-**
5,850
-
345
1,265
13,042
11,103
13,730
35,000
21,052
-
-
1,383,560
1,550
-
**1,486,497**
**1,486,497**|**Total**
**Funds**
**2025**
**£**
1,948
32,034
710
55,570
225
100
155
-
960
3,464
360
1,121
171
5,442
-
**102,260**
5,850
-
345
1,265
13,042
11,103
13,730
35,000
21,052
-
-
1,383,560
1,550
-
**1,486,497**
**1,588,757**|**Total**
**Funds**
**2024**
**£**
920
25,994
860
37,488
-
-
520
400
1,372
2,175
360
1,844
67
6,599
1,838| |||||**80,437**
32,139
8,208
3,637
3,241
26,975
1,299
14,160
55,678
41,902
36,447
1,150
-
22,370
188| |||||**247,394**
**327,831**| 15 | P a g e **THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025** |**NOTES TO THE FINANCIAL STATEMENTS**
**OR THE YEAR ENDED 31 AUGUST 2025**|||||| |---|---|---|---|---|---| |**Unrestricted**
**Funds**
**3. Resources Expended**
**2025**
**£**
**Charitable Activities**
Church Rent
44,605
Fundraising Committee Expenses
993
Ministry Insurance
415
Miscellaneous expenses
827
Annual/Church Outings
1,800
Travel
899
Utility Bills
1,528
Bank charges
743
Multimedia
4,347
Donations given
60
Accounts/ Audit Expenses
12,000
PC Administration
359
Clergy Expenses
-
Depreciation
444
**Total Charitable Activities**
**69,020**
**Project Activities**
Mortgage Interest Payments
-
Legal/Professional Fees
-
Utility/ Security Expenses
-
Building Works
-
Building Insurance
-
Fundraising Events Expenses
-
**Total Project Activities**
**-**
**Total Resources Expended**
**69,020**
**Support and governance costs, included in the above, are as**
Church Rent
Ministry Insurance
Travel
Utility Bills
Bank charges
Accounts/ Audit Expenses
PC Administration
Clergy Expenses
Depreciation
Mortgage Interest Payments
Utility/ Security Expenses
Building Insurance
**Total**|**Restricted**
**Funds**
**2025**
**£**
-
-
-
-
-
-
-
-
-
-
-
-
-|
**Total Funds**
**2025**
**£**
44,605
993
415
827
1,800
899
1,528
743
4,347
60
12,000
359
-
444
**69,020**
17,217
-
747
-
6,390
81,028
**105,382**
**174,402**
**2025**
**£**
44,605
415
899
1,528
743
12,000
359
-
444
17,217
747
6,390
**85,347**|**Total Funds**
**2025**
**£**
44,605
993
415
827
1,800
899
1,528
743
4,347
60
12,000
359
-
444|**Total**
**Funds**
**2024**
**£**
39,245
1,089
395
771
2,655
40
1,927
882
2,215
300
365
519
62
-
**50,465**
17,886
53,063
727
290,721
6,717
3,126
**372,240**
**422,705**
**2024**
**£**
39,245
395
40
1,927
882
365
519
62
-
17,886
727
6,717
**68,765**|**Total**
**Funds**
**2024**
**£**
39,245
1,089
395
771
2,655
40
1,927
882
2,215
300
365
519
62
-| ||**-**
17,217
-
747
-
6,390
81,028||**69,020**
17,217
-
747
-
6,390
81,028||**50,465**
17,886
53,063
727
290,721
6,717
3,126| ||**105,382**
**105,382**
**follows:**||||| 16 | P a g e **THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION** **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025** ## **4. Tangible Fixed Assets** |**. Tangible Fixed Assets**||||| |---|---|---|---|---| |
Cost/ Valuation brought forward (b/fwd)
Additions
Cost/ Valuation carried forward (c/fwd)

Accumulated Depreciation b/fwd
Depreciation
Accumulated Depreciation c/fwd
**Net Book Value**|**Freehold**
**Property**
**£**
800,000
-
**800,000**
-
-
**-**
**800,000**|**Construction**
**work in**
**progress**
**£**
559,443
766,382
**1,325,825**
-
-
**-**
**1,325,825**|**Equipment **
**£**
-
1,774
**1,774**
-
444
**444**
**1,330**|**Total**
**£**
1,359,443
768,156| |||||**2,127,599**
-
444| |||||**444**
**2,127,155**| The charity owns a property which cost £700,000 in 2011 and was value at £800,000 in 2023. Construction costs for the project underway are capitalised under work in progress. £559,443 brought forward amount relates to prior year expenditures to building work, which now has been capitalised. |**5. Debtors**
Prepaid expenses and accrued income
**Total debtors**
**6. Cash at bank and in hand**
Bank Accounts (Current and Deposit)
Cash in hand
**Total Cash at bank and in hand**
**7. Creditors: amounts falling due within one year**
Trade Creditors
Accrued expenses
Mortgage Loan Account
**Total current creditors**
**8. Creditors: amounts falling due after one year**
Amounts falling due between one and two years
Amounts falling due between two and five years
Amounts falling due after five years
**Total long-term creditors**|**2025**
**£**
18,399
**18,399**
**2025**
**£**
690,040
3,430
**693,470**
**2025**
**£**
3,858
12,622
29,818
**46,298**
**2025**
**£**
32,175
111,343
25,841
**169,359**|**2024**
**£**
24,789| |---|---|---| |||**24,789**| |||**2024**
**£**
45,388
5,577| |||**50,965**| |||**2024**
**£**
91
360
26,867| |||**27,318**| |||**2024**
**£**
28,783
99,098
70,986
**198,867**| Long term creditors relates to the balance of a 20-year mortgage used to fund the property purchase. 17 | P a g e **THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION** **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025** ## **9. Movement of Funds** |**1**
**September**
**2024**

**£**
Unrestricted Funds
320,717
Restricted Funds
228,852
Property Revaluation Reserve
100,000
**Total**
**649,569**|**Prior Period**
**Adjustment**
**£**
-
559,443
-
**559,443**|**Incoming**
**resources**
**£**
102,260
1,486,497
-
**1,588,757**|**Outgoing**
**resources**
**31 August**
**2025**
**£**
**£**
69,020
353,957
105,382
2,169,410
-
100,000| |---|---|---|---| ||||**174,402**
**2,623,367**| ## **Prior Period Adjustment** During 2025, it was identified that the accounting treatment applied to expenditure relating to the refurbishment of the charity’s freehold property was incorrect. Certain costs had been recognised as expenditure in the Statement of Financial Activities rather than being capitalised as tangible fixed assets. This resulted in a restatement of tangible fixed assets, project expenditure, and fund balances in the financial statements for the years ended 31 August 2023 and 31 August 2024. It was determined that expenditure amounting to £215,658 in the year ended 31 August 2023 and £343,785 in the year ended 31 August 2024 meets the recognition criteria for capitalisation as tangible fixed assets under FRS 102. The expenditure relates to construction, and refurbishment works which enhanced the charity’s freehold property and provide future economic benefit and service potential to the charity. Accordingly, the comparative figures have been restated to capitalise these costs within tangible fixed assets under freehold property improvements. The prior period adjustment has resulted in an increase in tangible fixed assets and a corresponding increase in fund balances at the respective reporting dates. The effect of the prior period adjustment on the financial statements is as follows: ||**2024**|**2023**|**Total**| |---|---|---|---| ||**£**|**£**|**£**| |Increase in tangible fixed assets|343,785|215,658|559,443| |Increase in restricted fund balances|343,785|215,658|559,443| The adjustment has no impact on the charity’s cash balances for either year. ## **10. Auditors Remuneration** The auditor’s remuneration for the audit of these financial statements was £12,000 (2024: £365). No other services were provided. ## **11. Subsequent Events** A key project is the renovation of the property acquired in 2011 into a place of worship/community centre in the traditional Ethiopian Orthodox style. The main works were completed after the year end and the opening took place in December 2025. ## **12.Trustees Remuneration and Benefits** No trustee received remuneration and benefits from the charity. 18 | P a g e **THE ETHIOPIAN ORTHODOX CHURCH ST. MARY OF ZION** **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025** ## **13. Connected Parties and Related Party Transactions** The charity is linked to the wider Ethiopian Orthodox Church and meets regularly with the local Diocese. No financial transactions took place with either during the period, although the expectation is that once the church development is completed, the charity will contribute towards the administrative costs of the local diocese as well as the costs of supporting the wider community. 19 | P a g e