Charity Registration No. 515637
THE EGYPTIAN CHRISTIAN ORTHODOX ASSOCIATION ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
THE EGYPTIAN CHRISTIAN ORTHODOX ASSOCIATION
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees Dr M M Mina Dr K T Moussa Dr G T Abdel-Malek Dr F N Youssef Dr A Salama Dr M Youssef Dr Y Gabriel Dr R Gabrial Dr A Michael Charity number 515637 Independent examiner Jerroms Lumaneri House Blythe Gate Blythe Valley Park Solihull West Midlands B90 8AH Bankers Barclays Bank plc 10 High Street Solihull West Midlands B91 3TE
THE EGYPTIAN CHRISTIAN ORTHODOX ASSOCIATION
CONTENTS
| Page | |
|---|---|
| Trustees report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Statement of cash flows | 6 |
| Notes to the financial statements | 7 - 13 |
THE EGYPTIAN CHRISTIAN ORTHODOX ASSOCIATION
TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2020
The trustees present their report and financial statements for the year ended 31 December 2020.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016)
Objectives and activities
The charity is governed by a declaration of trust dated 11 September 1984 and updated by a supplemental deed dated 14 April 1989.
The objectives of the charity are the continuance and furtherance of Orthodox Christian religion.
This has been achieved under the direction of Bishop Missael and his representatives within the Midlands.
The charity continues to meet its objectives through Christian teaching, Church services, Sunday schools, Retreat homes and activities for Children.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
The Charity continues to provide activities in pursuit of its main objects and with the generosity of its members continues to prosper.
Achievements and performance
During the year the Coptic Othodox Church has seen growth in donations and covenants in both the Birmingham and Derby areas. The church continues to develop year on year with the support of it's parishioners who remain focused on delivering the overall objectives of the charity. It is foreseen that the funds available to the church will improve with time.
Financial review
The trustees continue to hold cash reserves in low risk funds, as they consider that reserves at this level will ensure that they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The trustees have identified no major risks in the continuance of its objects.
Structure, governance and management
The charity is governed by a declaration of trust dated 11 September 1984 and updated by a supplemental deed dated 14 April 1989.
The trustees who served during the year were:
Dr M M Mina Dr K T Moussa Dr G T Abdel-Malek Dr F N Youssef Dr A Salama Dr M Youssef Dr Y Gabriel Dr R Gabrial Dr A Michael
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THE EGYPTIAN CHRISTIAN ORTHODOX ASSOCIATION
TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
The Charity's Secretary is responsible for the briefing and training of trustees. A trustee "induction pack" is available providing an introduction to the legal requirement and responsibilities of trustees and a comprehensive statement of the objectrs, values and beliefs of the church .
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
There are no specific investment powers established by the trustees.
Law applicable to charities in England and Wales requires the Trustees to prepare statements for each financial year which give a true and fair view of the charity's financial activities during the year and of its financial position at the end of the year. In preparing financial statement giving a true and fair view, the Trustees should follow best practice and;
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select suitable accounting policies and then apply them consistently; - make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements;
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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 accounting records which disclose with reasonable accuracy the financial position of the charity and which enable them to ascertain the financial position of the charity and which enable them to ensure that the financial statements comply with the trust deed. 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.
The Trustees r eport was approved by the Board of Trustees.
Dr F N Youssef
Dated: 3 August 2021
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THE EGYPTIAN CHRISTIAN ORTHODOX ASSOCIATION
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF THE EGYPTIAN CHRISTIAN ORTHODOX ASSOCIATION
I report to the trustees on my examination of the financial statements of The Egyptian Christian Orthodox Association (the charity) for the year ended 31 December 2020.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of Chartered Certified Accountant, which is one of the listed bodies.
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Richard Alan Horton F.C.C.A Jerroms
Chartered Certified Accountants Lumaneri House Blythe Gate Blythe Valley Park Solihull West Midlands B90 8AH
Dated: 3 August 2021
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THE EGYPTIAN CHRISTIAN ORTHODOX ASSOCIATION
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2020 | 2019 | ||
| Notes | £ |
£ | |
| Income from: | |||
| Donations and covenants | 2 | 631,969 | 845,778 |
| Investments | 3 | 321 | 667 |
| Total income | 632,290 | 846,445 | |
| Expenditure on: | |||
| Charitable activities | 4 | 285,021 | (145,408) |
| Net asset transfer | 8 | (256,223) | 715,964 |
| Other | 9 | 29,345 | 30,053 |
| Total resources expended | 58,143 | 600,609 | |
| Net income for the year/ | |||
| Net movement in funds | 574,147 | 245,836 | |
| Fund balances at 1 January 2020 | 2,157,824 | 1,911,988 | |
| Fund balances at 31 December 2020 | 2,731,971 | 2,157,824 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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THE EGYPTIAN CHRISTIAN ORTHODOX ASSOCIATION
BALANCE SHEET
AS AT 31 DECEMBER 2020
| Notes Fixed assets Tangible assets 10 Current assets Debtors 11 Cash at bank and in hand Creditors: amounts falling due within one year 13 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 14 Net assets Income funds Unrestricted funds |
2020 £ £ 3,486,758 79,912 208,845 288,757 (66,256) 222,501 3,709,259 (977,288) 2,731,971 2,731,971 2,731,971 |
2019 £ £ 2,818,665 62,693 375,495 438,188 (74,286) 363,902 3,182,567 (1,024,743) 2,157,824 2,157,824 2,157,824 |
|---|---|---|
The financial statements were approved by the Trustees on 3 August 2021
Dr F N Youssef Trustee
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THE EGYPTIAN CHRISTIAN ORTHODOX ASSOCIATION
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020
| 2020 | 2019 | |||||
|---|---|---|---|---|---|---|
| Notes | £ | £ | £ | £ | ||
| Cash flows from operating activities | ||||||
| Cash generated from/(absorbed by) | 15 | |||||
| operations | 660,505 | (167,709) | ||||
| Investing activities | ||||||
| Purchase of tangible fixed assets | (780,721) | (452,869) | ||||
| Proceeds on disposal of tangible fixed | ||||||
| assets | 865,196 | |||||
| Interest received | 321 | 667 | ||||
| Net cash (used in)/generated from | ||||||
| investing activities | (780,400) | 412,994 | ||||
| Financing activities | ||||||
| Repayment of bank loans | (46,755) | (236,070) | ||||
| Net cash used in financing activities | (46,755) | (236,070) | ||||
| Net (decrease)/increase in cash and cash | ||||||
| equivalents | (166,650) | 9,215 | ||||
| Cash and cash equivalents at beginning of year | 375,495 | 366,280 | ||||
| Cash and cash equivalents at end of year | 208,845 | 375,495 |
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THE EGYPTIAN CHRISTIAN ORTHODOX ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
1 Accounting policies
Charity information
The Egyptian Christian Orthodox Association is governed by a declaration of trust dated 11 September 1984 and updated by a supplemental deed dated 14 April 1989.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's [governing document], the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
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THE EGYPTIAN CHRISTIAN ORTHODOX ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
1 Accounting policies
(Continued)
1.4 Incoming resources
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
1.5 Resources expended
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to cost related to the category.
1.6 Tangible fixed assets
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 so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings 2% straight line Graves 2% straight line Fixtures and fittings 15% reducing balance Motor vehicles 25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
1.7 Impairment of fixed assets
At each reporting end 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 asset is estimated in order to determine the extent of the impairment loss (if any ) .
1.8 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
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THE EGYPTIAN CHRISTIAN ORTHODOX ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
1 Accounting policies
(Continued)
1.9 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.
1.10 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
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THE EGYPTIAN CHRISTIAN ORTHODOX ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
2 Donations and covenants
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2020 | 2019 | |
| £ | £ | |
| Donations and gifts | 529,567 | 786,281 |
| Gift aid | 102,402 | 59,497 |
| 631,969 | 845,778 |
3 Investments
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2020 | 2019 | |
| £ | £ | |
| Interest receivable | 321 | 667 |
| Charitable activities | ||
| 2020 | 2019 | |
| £ | £ | |
| Staff costs | 70,658 | 105,834 |
| Depreciation and impairment | 112,628 | (493,701) |
| Rent, rates and insurance | 11,501 | 15,511 |
| Light and heat | 26,645 | 24,073 |
| Repairs and maintenance | 4,388 | 6,773 |
| Telephone | 5,287 | 6,294 |
| Motor and travelling expenses | 510 | 4,043 |
| Sundry expenses | 9,603 | 540 |
| Computer running costs | 5 | 926 |
| 241,225 | (329,707) | |
| Grant funding of activities (see note ) | 36,280 | 166,891 |
| Share of governance costs (see note 5) | 7,516 | 17,408 |
| 285,021 | (145,408) |
4 Charitable activities
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THE EGYPTIAN CHRISTIAN ORTHODOX ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
5 Support costs
| Support costs Governance costs £ £ Accountancy - 5,016 Legal and professional - 2,500 - 7,516 Analysed between Charitable activities - 7,516 |
2020 £ 5,016 2,500 7,516 7,516 |
2019 £ 4,338 13,070 17,408 17,408 |
|---|---|---|
Governance costs includes payments to the auditors of £ 4,338 (2019- £ 5,908 ) for audit fees.
6 Trustees
None of the trustees (or any persons connected with them) received any remuneration or reimbursements for expenses during the year, for the performance of their duties.
7 Employees
The average monthly number of employees during the year was:
| Employment costs Wages and salaries |
2020 Number 4 2020 £ 70,658 |
2019 Number 4 2019 £ 105,834 |
|---|---|---|
8 Net asset transfer
In the prior year various assets less associated debt were transferred at Net Book Value of £715,964 for no consideration to a new established charity known as St Mary and St George as this was a branch of The Egyptian Christian Orthodox Association. An error was noted that assets with a Net Book Value of £256,223 should not have been transferred and hence have been reinstated this year.
9 Other
| 2020 | 2019 | |
|---|---|---|
| £ | £ | |
| Financing costs | 29,345 | 30,053 |
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THE EGYPTIAN CHRISTIAN ORTHODOX ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
| 9 Other 10 Tangible fixed assets Cost At 1 January 2020 Additions At 31 December 2020 Depreciation and impairment At 1 January 2020 Depreciation charged in the year At 31 December 2020 Carrying amount At 31 December 2020 At 31 December 2019 11 Debtors Amounts falling due within one year: Other debtors 12 Loans and overdrafts Bank loans Payable within one year Payable after one year |
Land and buildings £ 4,593,731 768,404 5,362,135 1,831,559 103,401 1,934,960 3,427,175 2,762,173 |
(Continued) Graves Fixtures and fittings Motor vehicles Total £ £ £ £ 17,281 191,403 66,018 4,868,433 - 12,317 - 780,721 17,281 203,720 66,018 5,649,154 7,956 152,550 57,703 2,049,768 346 6,802 2,079 112,628 8,302 159,352 59,782 2,162,396 8,979 44,368 6,236 3,486,758 9,324 38,853 8,315 2,818,665 2020 2019 £ £ 79,912 62,693 2020 2019 £ £ 1,024,042 1,070,797 46,754 46,054 977,288 1,024,743 |
|---|---|---|
The long-term loans are secured by fixed charges over 6 years
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THE EGYPTIAN CHRISTIAN ORTHODOX ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
| 13 Creditors: amounts falling due within one year Notes Bank loans 12 Trade creditors Other creditors Accruals and deferred income 14 Creditors: amounts falling due after more than one year Notes Bank loans 12 The loans are secured against the following freehold properties: The Bungalow, Hill Park Chase, Lapworth, Solihull Flat 5, Hill Park Chase, Lapworth, Solihull Freehold Church, Caldwell Grove, Solihull 15 Cash generated from operations Surplus for the year Adjustments for: Investment income recognised in statement of financial activities Depreciation and impairment of tangible fixed assets Movements in working capital: (Increase)/decrease in debtors (Decrease)/increase in creditors Cash generated from/(absorbed by) operations |
2020 £ 46,754 8,662 4,656 6,184 66,256 2020 £ 977,288 2020 £ 574,147 (321) 112,628 (17,219) (8,730) 660,505 |
2019 £ 46,054 18,067 6,805 3,360 74,286 2019 £ 1,024,743 2019 £ 245,837 (667) (493,701) 65,719 15,103 (167,709) |
|---|---|---|
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