All Saints’ Cathedral All Saints’ Cathedral P O Box 40539 – 00100, Nairobi, Kenya Tel: 020 8004679 Cell: 0729 471855 / 0732 600466

e-mail: [email protected] website: http:www.allsaintsnairobi.org

Annual Report and Financial Statements

2015

Cathedral Vision A Cathedral of spiritual nourishment and fellowship for ministry to the world.

Cathedral Mission Statement

To transform people’s lives into Christian maturity and fullness of life through obedience to the Word of God

Core values

• Prayer • Servanthood • Unity in Diversity • Excellence with Integrity • Innovation and Creativity

Cathedral Theme for Year 2016

Bearing fruit that lasts John 15:16

ALL SAINTS’ CATHEDRAL

ANNUAL REPORT AND FINANCIAL STATEMENTS

2015

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CONTENTS

Part I Preamble...................................................................................................................5 Provost’s report on Ministry Pillars 1. Worship Pillar.................................................................................................8 2. Education and Discipleship..........................................................................11 3. Evangelism and Outreach Pillar....................................................................13 4. Pastoral Care and Sacraments Pillar...............................................................17 5. Ministry Placement Pillar..............................................................................19 People’s Warden report............................................................................................23

Part II Hon. Treasurer’s Report ..........................................................................................28 Financial statements for the year ended 31 December, 2013 Cathedral information — Parochial Church Council Members and Advisors.....37 Report of the Parochial Church Council.............................................................39 Statement of the Parochial Church Council’s responsibilities..............................40 Report of the Independent Auditor....................................................................41 Statement of comprehensive income...................................................................42 Statement of financial position...........................................................................43 Statement of changes in funds............................................................................44 Statement of cashflow.........................................................................................45 Notes to the financial statements........................................................................46

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PART I • Preamble • Elected and Co-opted Members into the Parochial Church Council • Ministry reports for the year 2013

1. Worship Pillar 2. Education and Discipleship Pillar 3. Evangelism and Outreach Pillar 4. Pastoral Care and Sacraments Pillar 5. Ministry Placement Pillar • 2016 Report for All Saints’ Cathedral School • People’s Warden Report

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PREAMBLE The year 2015 was a teaching year with emphasis laid on the teaching church. The theme for the year was “Growing to maturity” taken from Ephesians 4:13b. The emphasis was on the need for the church to go back to the basics of our faith. During the year, the ministry team had a series of teachings on doctrinal issues such as stewardship, sacraments, cults and occultism, and thanksgiving. The year 2015 was a year of remarkable growth both in the enrolment and engagement of new members into various ministry sectors and activities. We saw the re-establishment and strengthening of the Cell Group ministry which has now been inculcated into the membership training curriculum. This was in line with the Cathedral’s vision of developing spiritual nourishment and fellowship for ministry to the world. In line with remaining as a teaching church, through the Education and Discipleship Pillar we have developed various manuals which are currently in use. These include the New Believers (discipleship), Pre-marital and School of Prayer classes. We shall continue to review the needs of the Christians and develop more standardized teaching materials. A child-friendly liturgy has also been developed for use in the Sunday school ministry. Similarly, a children’s hymnal has been developed and will also be adopted for use in this sector. There was a marked increase in giving with collections totalling KES 171,578,176/- which is an average of KES 14,298,181.33 per month. The increase in the collections is indicative of the church’s growth and the benevolence of our Christians. Church membership grew from 7212 to 8123. This was enhanced by the increased uptake of membership training and registration. We remain immensely grateful for the faithful giving and support, as this makes it possible to propel the Gospel as well as bringing social transformation. The Cathedral recognizes the need for partners in its work. As such in the year 2015 our partnerships were strengthened in collaboration with various parachurch and non-church organizations including Kenya Student’s Christian Fellowship (KSCF), Childnet Tuamke Fellowship, Kenya Christian Professional Forum (KCPF), CMS Africa, Bible Literacy & Translation Kenya (BTL), I-Serve Africa, First Lady’s Beyond Zero Initiative, CMS Ireland and the Greenhouse Movement, Chicago – USA. Accordingly, a team of 3 clergy lead by the Provost visited the Greenhouse Movement, Chicago, USA in March 2015 as part of the Cathedral’s international linkages. A reciprocal visit was later made by some clergy/staff of the Greenhouse Movement from 21st to 31st August 2015. Following the government of Kenya’s inclusion of Kenya Sign Language (KSL) as an official language, the Cathedral began to train clergy and ministry staff in KSL in late 2014. The ministry team is now able to engage with the members of the Deaf congregation. In addition to this, we mainstreamed the Deaf community into the Cathedral order of services under the leadership of a Cathedral-appointed leader. Members of this congregation underwent membership training and we are now developing catechism materials for baptism and confirmation training for them. 5

The Youth Ministry is experiencing immense growth. From the 22nd to 26th April 2015, we had a youth conference with over 1000 youth attending. This was the first of its kind and has now been established as an annual event. To help with coordinating the activities of the Youth alongside the Youth Pastor, the Cathedral engaged the services of a Youth Coordinator. Similarly, the Teens’ Ministry celebrated its 10th anniversary with a conference from the 12th to 15th August 2015. In late 2015, we engaged a full time Teens’ Coordinator as we await the appointment of a full time minister. The Children’s Ministry remained vibrant in the year 2015 with children actively involved in Hospital visitation to Kenyatta National Hospital, VBS outreach to Kayole and Children’s Day of Prayer. In the year 2016, we plan to officially launch the Brigade band, which shall be drawn from the Cathedral’s primary school and Sunday school. Our intention is to develop a band of professionals who can participate in regular as well as special services as opposed to hiring orchestras and bands. The Social Outreach Ministry (SOM) under the umbrella of the Evangelism and Outreach Pillar had a golf tournament on 20th March 2015 at Vet Lab Sports Club. The tournament, the first of its kind was an initiative created to boost the scholarship fund for needy and deserving students. In May 2016, a similar tournament will be held and we anticipate an increase in involvement of our members. Some of those who have benefited from the scholarship are actively involved in the Cathedral ministry. As part of the growth of the Cathedral, we saw two full time clergy leave. Rev. Kenneth Ofula (Teens’ Minister) was awarded a Presidential scholarship to Princeton Theological College for a master’s program and Rev. John Ikucha (Pastoral Care & Sacraments Minister) was appointed Provost at All Souls Cathedral, Machakos Diocese. Rev. Joseph Kamau was appointed as a full time minister. We faced a few security concerns with regard to volunteers serving at the Cathedral. As such, we are now in the process of developing a standardized policy governing the engagement of volunteers in active ministry. A vetting committee has been formed to evaluate all those persons interested in ministry work alongside Clergy and staff of the Cathedral. We anticipate in the year 2016 to launch two major projects; the Nehemiah wall and the Children and Teens’ Centre (CTC). This is guided by the 50 year master plan for infrastructural developments. A CTC Committee was established in February 2015 headed by Canon John Wairumbi and a ground blessing ceremony led by His Grace the Archbishop held at the proposed CTC grounds on All Saints Day. It is important to mention here that all outstanding loans and disbursements related to the massive Multi-purpose Hall project have been fully paid. We are therefore not undertaking these new projects with any outstanding loan balances. This was made possible yet again, by the Christians’ faithful and generous giving and support. In the year 2017, the Cathedral will commemorate its Centenary. In view of this, we established a Cathedral Centenary Celebrations Committee (4Cs) in July 2015 headed by Mr. Karanja Kahia to plan, prepare and steer the celebrations. Different sub-committees are working towards achieving the Centenary Celebrations. 6

In June 2016 our current Archbishop, the Most Rev. Dr. Eliud Wabukala, will retire. As such, the process of transition has begun and the enthronement service of the new Archbishop will be on 3rd July 2016. We take this opportunity to once again thank the Parochial Church Council (PCC), Trustees, Elders, Clergy and all members of the Cathedral, both laity and staff for their consistent service and dedication in the year 2015. We pray for God’s revitalization, grace and strength in the year 2016 as we continue to provide spiritual nourishment to the world

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PROVOST’S REPORT 1. WORSHIP PILLAR The Worship Pillar ensures that the worship/spiritual needs of the congregation are identified, reviewed and responded to effectively by providing services that are vibrant, enriching and inclusive, while still maintaining the Anglican authenticity. In the year under review, various activities and events that resonate with our objectives were held. The overall effectiveness of the diverse activities is largely summarised by the increase / decrease in church attendance through the year 2015. CATHEDRAL’S ATTENDANCE GRAPH FOR 2014 & 2015 30,000 25,000 20,000 15,000

2014 2015

10,000 5,000 0

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV DEC

Objectives & corresponding activities Objective 1. To create and develop a liturgy that is vibrant, contemporary and that enhances the worship experiences in the Cathedral. 1. In the year 2015, the Cathedral centred its services upon the theme “Growing to Maturity” taken from Ephesians 4:13. In view of this, a comprehensive preaching plan was developed, integrating contemporary relevant topics and readings with the guidelines of the Anglican lectionary. 2. Child-friendly liturgy – The pillar developed a child-friendly liturgy for adoption in the year 2016. 3. Children’s hymnal – A Children’s hymnal to complement the liturgy was similarly developed for use in the Sunday school.

Objective 2. To create a congregation that values and effectively engages in individual and corporate prayers. 1. Prayer ministry – In order to harness the diverse prayer activities of the various prayer ministries, an intercessory committee was formed and officially launched on 29th November 2015. The pillar will oversee and coordinate this ministry and the foundations of a vibrant prayer ministry at the Cathedral. To this end, a designated room within the Auditorium has been allocated and 8

dedicated for all day use in prayer. 2. In liaison with the Pastoral Care pillar, we enhanced maombolezi ministry to the families who book halls for prayers and meetings during their hard time of bereavement; 3. The Divine Conference was held from Friday 28th to Sunday 30th August 2015. 4. Police service was held on Sunday 20th December 2015 during the 11.30am service. The main objective of this service is to minister to and appreciate the police who serve in Nairobi City County. Looking ahead, the last Sunday before Christmas has been adopted as a police service Sunday.

Objective 3. To create an environment in which members show respect for order, systems and place of worship. 1. Crèche – in response to the needs of a large constituency of Christians who attend church with their infants, St. Matthew’s Room was designated for use as the new crèche, with a screen and speakers fitted to ensure that parents are able to follow all services replacing the formerly insufficient facility within the main sanctuary. The crypt is now being used as a choir rehearsal room. 2. Deaf Congregation – in the year under review, the pillar purposed to unify the Deaf service into one congregation under the Cathedral structure. This took place by positively responding to the desire of old members of this sector to disengage from the Cathedral, while still embracing upcoming new members. The Deaf services are held from 11.30am to 1.30pm at St. Philip’s Chapel and one Sunday in a month, the Deaf join the 11.30am service.

Objective 4. To enhance and enrich worship experiences through special services, events, occasions and music. In keeping with our objective to promote events that respond to the spiritual needs of the Christians, the following auxiliary services were held in the year 2015. 1. Easter Fest concert: Held on Palm Sunday. 2. Sounds of Praise concert was held on Sunday 26th July 2015 with the participation of the all the Cathedral choirs, the children’s choir and the Kenya Conservatoire of Music orchestra. 3. All Saints’ Day was held on 1st November 2015. A total of 4,000 Christians attended this joint service followed by the Parish Lunch 4. Hymn Fest was held on Sunday 1st November 2015 which coincided with All Saints’ Day. The event saw a record attendance of over 1,000 people. 5. Children’s Carol service was held on 13th November 2015 at 3pm. The service was well attended. 6. Advent Carol service was held on Sunday 29th November 2015 at 6pm. This service had a record attendance of 946. 7. Jingle Experience took place on Sunday 20th December 2015. Again this was well attended and laid a good platform for the Christmas Eve, Watch night and Christmas day services which all witnessed record attendances. 8. Diocesan Thanksgiving service which saw a record achievement of over KES. 14,000,000 to the needs of the diocese was held on Sunday, 20th September 2015. 9. Harvest Service was held on Sunday 27th September 2015.

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Areas requiring improvement 1. Organ – comprehensive restorative works need to be done to forestall frequent breakdowns of the organ in the main sanctuary. 2. Audit of sound and media requirements – an exhaustive audit of the sound and media requirements of the Cathedral was undertaken and recommendations will be implemented. New equipment for use in worship services will be purchased in the course of the year 2016 in liason with the Procurement and Property committees. 3. Brigade Band – As part of our overall strategic focus in enhanced services and worship experiences, the pillar comprehensively laid down the ground work for the initialization of a children’s brigade band. In the course of the year 2016, it is expected that instruments will be purchased and lessons provided for the initial group of children in the brigade band.

Identified challenges (i) Consistently satisfying all the experiential needs of our diverse congregation. (ii) Inadequate parking space for our members. (iii) Inadequate space for the children’s church/Sunday school. This challenge will be overcome once we complete the Children and Teens Centre. Plenary discussion.

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2. EDUCATION & DISCIPLESHIP PILLAR This Pillar works in collaboration with other ministries in building God’s people to reach spiritual maturity. In 2015, the Pillar focused on equipping the members to grow in faith and in knowledge of God through consistent training, in order to attain Christian unity and maturity in faith. It also provided support to some of the ministries in the management of the transition processes at the Cathedral. In order to meet the objectives under this pillar, the ministry activities discussed below were carried out.

Objective 1 To develop a pool of well-grounded and theologically sound congregants for ministry and engagement on contemporary issues that affect the society. Activities (i) Theological Education by Extension (TEE) had 16 groups with 200 participants, including a Kiswahili Class and a Youth Class. (ii) The Teens Ministry 10th anniversary celebration was held from 9th to 16th August with an average attendance of 200. This was part of the Teens’ Week held every August. (iii) Vacational Bible School was held on 17th to 21st August 2015, with an average of 550 children attending and held a VBS outreach in Kayole form 24th to 28th August 2015 with over 400 children attending. All Saints Cathedral children took part in the outreach. (iv) Cathedral men’s fellowship took place every month (v) KAMA held fellowships and meetings every month and a dinner at the end of the year. (vi) Mothers Union held seminars and fellowships which included widow’s seminars. (vii) Senior Citizens held seminars, fellowships and visitation (viii) School of Prayer had 40 members who successfully completing the course. (ix) Children Ministry had Training of Teachers was done internally.

Objective 2 To support the Cathedral ministries through the development of rich and sound curricular and ministry materials Activities (i)

The following manuals were developed and some revised and are currently in use: (a) Discipleship training Manual (b) Cathedral Evangelistic Training Manual (c) Cell Group Leaders Guideline (d) School of prayer Manual (e) Adili program manual (f ) Counselors Training Manual

Objective 3 To support effective management of transitions amongst the different sectors and special focus groups, and facilitate membership assimilation in different sectors. Activities

(i) 62 children graduated from Sunday school to the Teens’ Church during the Graduation 11











and Christmas service on 13th December 2015. (ii) Rites of Passage Experiences (ROPES): Boys’ camp was held on 17th to 22nd November 2015 while the Girls’ camp was held on 24th to 29th November 2015. On Saturday 9th January 2016, 45 ROPES Candidates were commissioned at the Trinity Auditorium and welcomed on 10th January during the 9.30am service. (iii) The Ex-Cans Program for the ex-form fours was held with 48 Ex-Cans in attendance. (iv) Children’s Camp was held from 7th to 11th December 2015 in Nanyuki. A total of 142 children attended and 10 children from the U.D.P Tujisaidie Community School, Kayole were sponsored. (v) Teens’ Camp was held 7th to 12th December 2015 at Jumuia Resort, Mombasa. We had a total of 55 teens attending the camp which was held, from, with 7 committing their lives to Jesus Christ. (vi) Youth Camp was held from 28th December 2015 to 2nd January 2016. A total of 98 Youth and Young Adults attended the camp which was held at Bweyogerere rest Garden in Kampala Uganda. (vii) Mothers Union: Trained 30 new members who were commissioned by His Grace the Archbishop on 1st August 2015 at St. Francis Church, Karen.

Objective 4 To develop the Resource Centre into a facility that will enable easy access to Christian literature, and support study and research by congregants and staff. Activities (i) The Cathedral has purchased 200 books which are being utilized at the Resource Centre. (ii) The Resource center continues to collate, document and archive all the important materials (photos and documents, as well as oral stories from Cathedral members) on the Cathedral’s History.

Objective 5 To oversee and develop discipleship programs in the Cathedral. Activities The following discipleship programs were held in the Cathedral: (i) Bible Study groups (a) Both the Youth and Young Adults Bible Study sessions are ongoing, both experiencing phenomenal growth (b) Formation and Launching of Adili Ministry focusing on Mentoring of young Ladies. (ii) Developed Bible Study questions for individual and Cell Group use. (iii) Developed a strategic plan for discipleship Ministry. (iv) Mothers’ Union talent week was held from 20th to 24th July 2015. (v) New Believer’s classes took place, 50 people graduated.

Identified challenges (i) Harnessing volunteer consistency and commitment. (ii) Inadequate space in the Sunday School. (iii) Inadequate parental involvement regarding tailor-made transitional programs for the different sectors. Plenary Discussion 12

3. EVANGELISM AND OUTREACH PILLAR The core mandate of the Cathedral Evangelistic and Outreach Pillar is to reach out to the un-churched, de-churched and unreached; both in the city and other strategic mission fields in Kenya and beyond. In the past year the Cathedral has continued to extend its influence in the city through outreach, key strategic partners and its Evangelistic Teams. At the same time, in response to the poverty situation in the country, the Cathedral reached out to the needy (socially and economically) with a gospel that demonstrated the compassion of Christ through love and care. In order to meet each objective under this pillar, the Cathedral carried out various activities in the year under review.

Objective 1 To enhance outreach ministry to key institutions and audiences in the city selected schools and colleges, and underprivileged members of the society. Activities Missions Several missions were organized in different dioceses, schools, universities and colleges. (i) Schools and Colleges Ministry The ministering teams included: Winds of peace, Vessels of Honor, Drama and Kipawa. The institutions visited include the following: (a) Sathya Sai School (b) Nginda Girls High (c) Step Joy Girls School (d) Buruburu Girls high school (e) Limuru Girls (f ) Moi University, Eldoret (g) Nazarene University (h) Daystar University (ii) Cathedral Evangelistic Team (CET) (a) The team went to various missions in Nyamira Parish, Tanzania (Kikore Parish and Mkekena Parish), Murang’a South Diocese (Samar and Kenol Parish), Mageta Island-Bondo Diocese and Mbeere Diocese. Follow-up missions were also carried out in Keroka Parish in the DMA of Kisii. In total 1,006 people were reached and 320 people gave their lives to Christ from the said missions. Follow-up and discipleship is being done by specific parishes. (b) CET carried out monthly trainings for its members to equip them on contemporary ways of reaching out with the Gospel of Christ and especially the young people. The training included practical evangelism in the city parks where up to 30 people gave their lives to Christ on different occasions. (c) In April Cathedral Diocesan Evangelistic Teams (CADET) training was carried out with 30 cathedral members trained. (iv) Mission Month In the month of August 2015, the pillar organized evangelistic activities with the mission month theme being “Jesus my friend, a relationship that counts” (Mt. 11:28-30). Evangelistic messages were preached in all the services and people responded. 32 individuals gave and rededicated their lives to Christ. Hundreds received specialized prayers and ministry. 13

(v) Preachers Club The team held their monthly meetings and training on sermon delivery skills through the Langham Preaching program. They were also involved in preaching engagements in ACK Ruiru parish- Mt. Kenya South Diocese. (vi) Prison Outreach Ministry (a) The Cathedral continues to engage with Nairobi West Prison, the only ‘exit prison’ in Kenya, as a strategic partner. In April 2015, All Saints Cathedral attended a Discharge Board meeting whose objective was to aid in the reintegration of the inmates back to the society upon completion of their sentences. (b) In June the Provost led a team to deliver building materials worth Kshs.350, 000 to refurbish the prison’s dining hall. (vii) The Children Ministry had an outreach to Kenyatta National Hospital Children’s Cancer Ward as part of their Easter Mission.

Objective 2 To diversify the Cathedral’s outreach through various interventions which extend the love and compassion of Christ (eg.emergency response, social outreach etc.) Activities

Through the Social Outreach Ministry, the Cathedral focused on 3 areas mainly: education, relief and spiritual nurture. (i) Education Scholarship: The Church sponsored 44 students pursuing education in secondary schools, colleges and universities at a sum of KES. 4,291,826. Scholarship application forms were developed to assist the vetting committee in verification of the need of each applicant. (ii) Social Outreach Ministry – Formally Urban Development Program (UDP) The social and education projects in Kayole are ongoing. The Secondary sponsorship program supported 7 students with funds from CMS Ireland. The primary school, which the community set up (Tujisaidie Primary School), improved in its performance with the the top KCPE 2015 candidate scoring 336 Marks. (iii) Partnerships, International Linkages, Missionary Work: A team of 5 CMS – Ireland partners led by Rev. Adrian Dorrian visited All Saints’ Cathedral and the Tujisaidie Community School from 13th to 27th July 2015 and they repaired and painted the school. (iv) Golflite Tournament: The Cathedral through the Social Outreach Ministry held a Golflite Tournament on 20th March 2015 at Vetlab Sports Club with the aim of raising money for the scholarship fund that sponsors needy and deserving students. The Tournament was well attended with 110 golfers participating in the event. The Tournament raised a sum of KES. 1,106,350. (v) Economic Empowerment: A training was carried out on 13th November 2015 and 50 women drawn from St. Jerome Parish-Kibera attended. (vi) Relief (i) A Medical Camp was carried out in Kibera where 300 patients were treated and in Kayole where 800 patients were treated while some were referred for further treatment in various hospitals in Nairobi. (ii) Drugs worth over Kshs. 1 million were donated by difference pharmaceutical companies in the city. The exercise was carried out by Health Professionals from All Saints’ Cathedral, 14



Kenyatta National Hospital (KNH), Nairobi University Medical Students, The Lions Eye Hospital –Loresho, Lions Club Karen and Amani Counseling Center. (iii) The Cathedral extended its Outreach ministry to individuals who came to seek assistance in the church. Majority of them were counseled and some given food and clothing.

Objective 3 To strengthen strategic partnership with churches and Para-Church organizations for ministry to unreached areas Activities The Cathedral supported various churches and Para-church organizations and ministries with total of KES. 14,107,070.00 from Outward Giving in 2015 to support and facilitate missions and ministry across the country and beyond. A full list of all the beneficiaries of Outward Giving is found in the financial report. Some of the beneficiaries include: i. Kenya Student Christian Fellowship (KSCF): was supported towards a mission to Samburu and Marsabit ii. African Evangelistic Enterprises (AEE): support towards an Evangelistic mission to Eldoret iii. Transworld Radio: support towards purchase of Kiswahili and English Bibles to Manyani Prisons iv. Church Army Africa: was supported towards mission work in Kenya and beyond. v. Carlile College: support for college fees for 4 students from Tanzania, Sudan, DRC and Burundi vi. Blind And Low Vision Network Self Help Group: was supported towards economic empowerment through poultry keeping for persons with disability. vii. Association for the Physically Disabled of Kenya (APDK) Nairobi Branch: was support with wheelchairs worth KES 200,000 viii. Spinabifida And Hydrocephalus Association: was supported towards purchase of crutches ix. A.C.K Namusasi Church: was supported towards construction of multipurpose hall x. Capitol Hill Police station: was supported with 4 desktop computers. xi. Njoo Dada Trust: supported with 4 baby cots for Teenage mothers under their care. xii.

ACK St Francis Church: support towards construction of the new sanctuary.

xiii. ACK Holy Trinity Kibera: was supported for repairs for their primary school. xiv. ACK Inyanzaani Parish: support towards church construction. xv. ACK St. Mathew’s Parish Saradidi: support towards construction of vicarage. xvi. ACK Mt. Kenya Hospital: was supported towards expanding the hospital. xvii. St. Andrews Church Emmutsa: was supported to purchase pews. xviii. I Serve Africa: was supported towards raising gospel workers & servant leaders. xix. State House Girls High School: support towards construction project. xx. Scripture Union: support towards a child in camp in Kitui. 15

xxi. Kenya Defense Force in Somalia – were supported with Our Daily Bread Devotionals xxii. ACK Nyamira Church support towards construction of the church xxiii. ACK St. John’s Church support towards construction of the church xxiv. Nyanza Evangelistic Team University of Nairobi support towards mission to Miguri County. xxv. ACK St. Paul’s Church – Jamhuri support towards construction of the church xxvi. Navigators Kenya: support towards mission initiatives xxvii. Fellowship of Christian Union (FOCUS) support towards Short Term Experience (STEM) program xxviii. Moi University Christian Union support towards evangelistic mission xxix. Medical School Christian Union: support towards an evangelistic mission in West Pokot xxx. Diocese of Machakos support of 6 evangelists in hardship areas within their Diocese. xxxi. Chiromo Campus Christian Union University of Nairobi support for Garsen Mission xxxii. University of Nairobi Kenya Science Campus support towards outreach ministry xxxiii. Love in the Name of Christ Ngong Road support towards outreach ministry xxxiv. ACK Holy Trinity Kibera support towards school repairs xxxv. Main Campus Christian Union support Marsabit Evangelistic mission xxxvi. St. Mathews Parish, Lwandanye support towards construction of the church xxxvii. ACK. St Joseph’s Church support towards construction of the church xxxviii. ACK Diocese Of Malindi support towards construction of the church xxxix. Parklands Campus support towards mission to trans-Mara Narok County. xl. ACK St. Mary’s Kyanda support towards construction of the church xli. ACK St. Nicholas Community Development Centre support towards the development of a strategic plan xlii. ACK Embu Diocese support towards children conference in Embu xliii. Sheepfold Ministries support missionary work among predominately Muslim communities in Garissa. xliv. Child Evangelism Fellowship support towards training of trainers conference of Sunday School Facilitators xlv. Nairobi Hospice support towards Annual charity Walk

Identified challenges (i) Mobilizing our members into the work of mission. (ii) Unfavourable government policy that hinders the deployment of chaplains to schools from the Cathedral. Plenary discussion. 16

4. PASTORAL CARE AND SACRAMENTS PILLAR The key objective is to provide a strategy for nurture and care to Cathedral congregants across all sectors by providing spiritual and physical care internally and externally, establishing sustainable systems and structures. In year 2015, the Pillar continued to offer chaplaincy services to sick members both at home and in hospitals; to establish the Church of Christ in homes through Cell Groups; to train new members through imparting the knowledge and functions of the Anglican Church so as to understand the vision and mission of the Church; to empower members of All Saints Cathedral with improved access to affordable and sustainable financial services through ASC Sacco; enriching marriages to experience the love and fulfillment that God intended; to spur and steer involvement of persons with disabilities and their families in ministry groups; to administer Sacraments to Christians in obedience to Christ’s command; to strengthen and root the congregation in Christian doctrines so as to ensure that there is sound biblical teaching as we prepare candidates for baptism and confirmation. In order to meet each objective under this pillar, the Cathedral carried out various activities in the year under review.

Objective 1 To strengthen pastoral care in the Cathedral through wellstructured engagement of pastors and members. Activities 1. Home and Hospital Chaplaincy The ministry visited the various hospitals namely; Kenyatta Hospital, Nairobi Hospital, Nairobi Women’s Hospital and Aga Khan Hospital. In the year under review a total of 10,636 patients were visited in the hospitals while 564 were visited at home. These patients were ministered to the word, Holy Communion and prayers. The Cathedral introduced Clinical Pastoral Education (CPE) as part of the Hospital Chaplaincy training in collaboration with the Servant of the Sick. Through this collaboration, three Chaplains – Peter Adongo, Vicki Okumu and Julie Oturie – have been trained in hospital visitation and commissioned to serve in the above hospitals and homes. 2. Cell Groups The cell groups meeting in homes provided peer pastoral care, fellowship and worship that members may otherwise not experience in the larger church. Cell Groups month took place in October 2015. A total of 447 new members were registered and five new cell groups were started. • Many of the cell groups organized outreach activities such as visiting St. Nicholas Children’s Home and Spinal Injury Hospital where they gave donations in kind. In addition, individual cell groups did community service in their neighbourhood. • Cell Groups were involved in the organization of the Annual Cathedral Fun Day on 1st May 2015 and a total of 1,235 members attended. 3. New Members In the year under review 836 new members were registered and commissioned. 4. Cathedral Sacco The Sacco month was held in November 2015 and 49 new members joined. In the same month Education Day was held and 104 members attended. 17



Below is a summary of the report. Year

Membership

Share Deposits (Ksh)

Loans Issued (Ksh)

2010

108

1,059,600

150,000

2011

151

1,749,200

1,077,990

2012

188

2,532,156

1,714,720

2013

216

3,150,255

1,492,848

2014

315

4,552,349

4,062,870

2015

404

5,888,150

10,015,740

Objective 2 To strengthen the Cathedral spiritual and psychosocial support to special interest groups Activities Special Abilities Ministry 1. The deaf congregation is now formally part of the Cathedral following the launch of the Deaf Service which meets on Sundays at 11.30am. Presently the congregation membership stands at 35. Membership training for this congregation was conducted in November / December 2015. 23 members attended and welcomed as members. Preparation for a suitable catechism for baptism and confirmation of Deaf members is in progress. 2. Care Giving ministry reached out to home confined members through home visitation and care giving. 3. 14 candidates were trained and graduated after a successful Conversational Sign Language training.

Objective 3 To strengthen the meaning and significance of sacraments in the worship and life of Congregants Activities 1) 2) 3) 4)

Baptism: a total of 160 adults and infants were baptized. Confirmation: a total of 120 candidates were confirmed. Holy Communion was administered to the old and sick members in homes and hospitals. Funerals and Memorials: 82 funerals and 7 memorial services were conducted.

Objective 4 To build spiritually mature Christians who uphold strong Christian values in families and society (a) Dedication services: 220 infants were dedicated in the year. (b) Marriage Outreach Ministry: Premarital classes were conducted quarterly and 76 couples went through the classes. (c) There were 86 weddings conducted in the year under review (d) The Annual Marriage Conference was held at Pangoni Beach Hotel and 86 couples attended. 18

Various marriage enrichment activities took place in the year: a breakfast for couples married under 5 years, pre-marital talk with dating youth, couples hike, couples dinner and parent-child events.

Identified challenges i.

Mobilizing the Christians to be involved in Cell Groups.

Plenary discussion.

5. MINISTRY PLACEMENT PILLAR The Ministry Placement Pillar’s role is to mobilize congregants for effective ministry engagement within the broad range of ministries available in the Cathedral. It is responsible for identifying, equipping and nurturing leaders for service. In order to meet each objective under this pillar, the Cathedral carried out various activities to nurture, appreciate, recognise and affirm church members in ministry.

Objective 1 To develop a structured system for identification of members, in order to nurture and place them as leaders in all sectors Activities • The PCC Away Day for orienting new leaders was held on 15th to 16th May 2015 at Elementaita Country Lodge led by Dr. Gershon Mwiti who spoke on the topic “Leadership Maturity for Spiritual Productivity” • Breakfast fellowship to encourage the attached clergy in ministry was held on 26th June 2015 and the guest speaker was Rev. Samuel Githinji from St. Paul’s University. • All members who have undergone membership training were placed in their ministries of interest. • It is now a Diocesan policy to have lay readers retire at the age of 65. Therefore, the Cathedral intends to hold a retirement service for 8 lay readers in the month of September. More Lay Readers will be commissioned to replace those who will be retiring in September 2016. • Rev. Kenneth Ofula was awarded a presidential scholarship to Princeton Theological Seminary for a Masters programme starting September 2015. • Rev. John Ikucha was appointed the Provost of All Souls Cathedral in Machakos and his Induction and Installation service took place on 5th July 2015. • Mr. Moses Waweru was appointed the Cathedral Finance Manager.

Objective 2 To develop and maintain effective mechanisms for continuous monitoring and evaluation of ministry Activities • The Pillar has maintained the use of the Ministry Evaluation Form by Pillars and Ministries to help in monitoring and evaluating their respective ministry activities. • The Pillar has maintained a structured system of reporting activities and monitoring the budgets against the respective activities to establish the effectiveness of ministry. • The Pillar has maintained a structured system of budgeting that is based on the objectives of the respective Pillars and Ministries. 19

• The Pillar has maintained a structured method of reporting Pillar and Ministry activities and the ministry teams appreciate the use of the new tools.

Objective 3 To build and foster healthy external relationships Activities A few international links were undertaken and local links increased as follows: • A team of 5 led by the Provost went for the initial reciprocal mission to Chicago in partnership with Greenhouse Movement with an aim of strengthening Anglican Churches in North America from 26th February to 18th March 2015. • The Provost and Rev. Peter Nzimbi attended the 62nd NCCK General Assembly in Mombasa from 10th to 13th August 2015. • The Cathedral hosted a couple from Chicago (Nate and Sarah Beasley) from 19th June 2015 to 2nd July 2015 as part of the reciprocal mission with the Green House Movement. • A team of 8 people from Greenhouse Movement in Chicago visited the Cathedral from 21st to 31st August 2015 during the mission month and attended the Divine Conference. • The Archbishop and the Provost accompanied by Eva Mdachi attended and participated in the Revive Conference from 8th to 11th October 2015 in Chicago.

Objective 4 To facilitate revitalization of sectors in ministry Activities • The Youth Conference was held from 23rd to 26th April 2015 and the average attendance was 498. • The Teens Conference was held from 12th to 15th August 2015 and the average attendance was 212 comprising of students from high schools, the All Saints’ Diocese and from within the city. • YLT and Young Adults Stakeholders breakfast was held on 19th September 2015. • The Lay Readers retreat was held on 20th and 21st November 2015. This will be an annual conference to equip and revitalize the lay readers. In addition they have monthly fellowships focusing on a particular area of ministry. • Staff Retreats: The ministry staff Team Building was held in April 2015 at Mt. Longonot. This was meant to enhance team work and cohesion within the ministry staff. The Entire Cathedral Staff went on a team building retreat to Mt. Kilimambogo

Objective 5 To maintain effective communication mechanisms with the diverse audiences in the cathedral on ministry activities/opportunities Activities

• The News and Views was produced according to the monthly themes. • Weekly service sheets were consistently produced and Sunday notices focused on the events that were key to church growth. • The Information Tent was reorganised and adequately equipped to respond to members needs. • A suggestion box has been installed and strategically placed. However, most people prefer to use e-mails.

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2016 REPORT FOR ALL SAINTS’ CATHEDRAL SCHOOL Education • Academics – In instilling the All Saints’ Cathedral School’s mission to provide a holistic education, the school has maintained a unique teacher to pupil ratio and equal contact time distribution. This is evidenced in our pupils’ academic progression curve through the years 2013 to 2015, where our KCPE results have consistently ranged between 300 and 420. Below is a summary of the 2015 school performance.

All Saints’ Cathedral Primary School - Kcpe Results Year 2015 Index No.

Names

Grade

20404022009

NATASHA ACHIENG

A

20404022013

RASHID MWINYI

A

20404022005

ERICK MUYA

A

20404022010

JACKSON KAMAU

A

20404022012

NICOLE NGINA

A–

20404022007

LUISA HELLINE AKUMU

A–

20404022003

JAPHET ALICHILUMO JR

A–

20404022001

GEORGE GLEN OWINO

A–

20404022016

CHARLES KARABA

B+

20404022006

DENNIS KIBET

B+

20404022014

ATHMAN MWAKUGHU

B+

20404022018

EMMANUEL ALAAK

B+

20404022002

EMMANUEL DAVID

B

20404022008

OBED JESSE MATULI

B

20404022015

WENDY GAHUNGUKA OLWANDE

B

20404022017

NAOMI ATIENO

B

20404022004

KOURTNEY CHEBET

B

20404022011

PAULINE WANJIRU

B–

AVERAGE B+ • Technology – As we strive to embrace Vision 2030, the computer laboratory has been upgraded to offer hands-on experience in the integration of an ICT curriculum. • Chaplaincy – we have continued to inculcate an ethos of servant leadership through our weekly compulsory chapel-hour sessions and ROPES [Rites of passage] programmes for our teenagers.

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Co-curricular programmes. In addition to choral singing and the soccer academy, we were able to introduce the following extracurricular programmes. • Chess – Our new chess club is increasing strategic thinking and the philosophy of always weighing options amongst our pupils. It has developed in our pupils the habit of anticipating consequences before making critical decisions. • Customized Physical Education – The ample fields enabled us to increase our range of in- house and outdoor activities in a safe and enjoyable environment that are unique to the specific physical and mental learning needs of each of the All Saints’ pupils.

Challenges Some of the challenges we have encountered in the year under review are: • Creating awareness – The school continued to struggle with pupil population due to little public awareness. In order to address this, the school developed a brand building and marketing tool for adoption by the Schools Board, the pupil-parent-teacher fraternity and the Church as a whole. • Poor Pupil retention – Pupils have continued to transfer to boarding school as they transition into upper primary years. To help alleviate this challenge, tuition rebates have been implemented to encourage families to enroll multiple children per family.

Achievements • Financial stability – the school has been strategically leasing the grounds to specified institutions for private functions on weekends and during school holidays. • A 10,000 Litre tank has been installed to harvest rainwater which assures us of a constant supply of water for sanitation in water-closet-use, during the occasional county water rationing operations. • ICT training for all the teaching staff was facilitated and sponsored by the Cathedral. Every teacher attained a certificate from the Jomo Kenyatta University of Agriculture and Technology. This has promoted the quality of use of IT in lesson dispensation in addition to increasing staff morale. • Well scheduled parents forums coupled with enhanced timely communication were introduced in the year under review. This saw a 50% increase in parental involvement in school activities and an increased interest in the running of the school. In our endeavour to be a center of excellence in Christian education and leadership development, we continue to convert our challenges into opportunities to reach out to the community and produce well rounded citizens who contribute positively to the transformation of the society at all levels. The Very Rev. Canon Sammy Wainaina Provost

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PEOPLES’ WARDEN REPORT Dear Brothers and Sisters in Christ, It is a privilege and honour to present this report once again as your warden. The year 2015 had significant happenings in our congregational life which I can only summarise in a report as brief as this. However, I know in our hearts, we hold the details of these and other events that characterized the life of All Saints’ Cathedral as well as our personal life. Allow me to thank each one of you for continued support of the ministry in this cathedral through Sunday service attendance and participation in worship, volunteering for ministry work, giving your tithes and offerings as well as prayers. These are all enumerated and presented in the various ministry reports that have been read to us earlier. May the Almighty God who sees what you have done, even in secret, reward you richly, even in the open, to His own glory and honour.

Ministry Globally, the Anglican Communion has continued in steady growth in numbers and spiritually while at the same time boldly dealing with spiritual liberalism that has threatened to divide it. Thanks be to God that orthodoxy prevailed in January 2016 in London when The Episcopal Church of USA was suspended from the Communion due to its liberal (anti gospel) tendencies. This affirmed that the rest of the Communion is holding on to the true gospel as expected. In Kenya, the Anglican Church has continued to grow and has also played a leading role, through the Archbishop, His Grace, the Most Rev Dr Eliud Wabukala, in steering the global communion to remain true to the gospel through the GAFCON movement. All Saints’ Cathedral has reached out to other dioceses within Kenya and outside through evangelical missions and reciprocal visits. It is worth noting that members of the congregation have taken an increasingly active role in these activities within the parish and also the diocese of All Saints’ Cathedral. The ministry at the cathedral was vibrant and grew, as is evidenced by the increased spending on ministry in 2015 compared to previous years, in a manifestation of the theme “Growing to Maturity”. However, a big challenge still remains on how to gauge the spiritual growth resulting from the ministry activities. During the year in review, the Wardens Committee sought to address this by preparing to conduct a baseline congregational survey that would establish the current spiritual position of the congregation to help clergy formulate relevant actions to address identified gaps and spur spiritual growth among the members. This did not happen as the identified tool (REVEALTM) was undergoing a major update and it is expected to be available this year.

Development 2015 saw the birth of two key development activities that will define the role of the cathedral in the next centenary that starts in 2017. It is important to note that in these initiatives, the congregation members have not only been involved and their views sought, but are actively leading in the planning and execution of the same. Here is a brief review.

1. The Cathedral Centenary Celebrations 2017 The year 2017 marks one hundred years since this cathedral was started. To help in thanking God and celebrating the past century as we anticipate that which is coming, a committee was set up and has so far achieved the following milestones. • The Cathedral Centenary Celebrations Committee (4Cs) was appointed in June 2015, given terms of reference and commissioned before the congregations of the Cathedral. 23

• In July and August 2015, sub committees were formed and issued with terms of reference and key objectives. The committees were mandated to engage a full complement of members with relevant skills to contribute to their work. • In October 2016, the Steering Committee submitted comprehensive proposals to the PCC and were given the green light to start formal preparations on every item proposed together with budgets. With this approval, the committees are ready to deliver on their items during 2016. The Cathedral Centenary falls on February 3, 2017 and there will be a midnight transition service to pass the torch from one generation to the next. Celebrations will continue throughout the centenary year culminating with grand big day on November 2017 All Saints Day when the anniversary will be officially commemorated.

2. The Children’s and Teens Centre (CTC) The cathedral has been blessed with many children who attend Sunday School and the teens who have worship services at the same time as the adult and youth services. However, the facilities for the children and the teens have become far too small and hence the need to create more room for the next generation of Christian worshippers. The milestones for this project are as follows: • Steering Committee inaugurated in February 2015, after which the congregation was socialized to the proposed project through open forums in March and April 2015. • Children art competition for a worship centre of choice was held in June and July 2015. • Students’ concept design competition in collaboration with University of Nairobi, JKUAT, and Technical University of Kenya schools of architecture was held between August and October 2015. • Ground blessing and presentation of the winning concept design competition award was on 1st November 2015. In 2016, many activities have been lined up including Requests for Proposals (RFP), appointment of consultants, design approval and statutory approvals leading to the proposed ground breaking and Fundraising day on 4th September 2016. As the congregation you have owned these activities and have responded most favourably by giving your time and talents as well as money towards achieving the stated goals. May God reward you with His riches in glory.

Conclusion As we thank God for the great things He has continued to do among the congregation of All Saints’ Cathedral, we also sincerely thank the ministry team led by the Provost for the dedicated service they have given in teaching, leading worship, pastoral care, training to equip members for service, and mission. We will gladly and dutifully pray for and follow the ministry team as they follow Christ. May God continue to anoint them to serve in excellence. We expect to get the sixth Archbishop of the Anglican Church in Kenya and the Bishop of All Saints’ Cathedral Diocese, in the next few months. We are praying for a process that is God-glorifying and that God’s will be done. We thank God for Archbishop Eliud Wabukala who has also been our diocesan bishop since 2009. His godly humility, character, wisdom and influence have been felt in our parish, the diocese, the province of Kenya and internationally within the Anglican Communion through his exemplary servant leadership. As the Chairman of the Primates Council in the GAFCON Movement he has been at the helm of resisting liberalism and proclaiming the supremacy of Christ and His gospel in the Communion. When the time comes, let us all join in wishing him God’s blessings as he takes up his next assignment. 24

Thank you, All Saints’ Cathedral congregation. Kindly accept my sincere appreciation and gratitude for giving me the privilege and opportunity to serve you during the past year. All glory and honour to Him alone. “And I pray this in order that you may live a life worthy of the Lord and may please Him in every way: bearing fruit in every good work, growing in the knowledge of God.” – Colossians 1:10 (NIV) For God’s Glory, Canon Jotham Kilimo Peoples’ Warden

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PART II • Hon. Treasurer’s Report • Audited Financial Statements for the year ended 31 December, 2015

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HON. TREASURER’S REPORT TO THE ALL SAINTS’ CATHEDRAL ANNUAL GENERAL MEETING FOR THE YEAR ENDING 31ST DECEMBER, 2015 I Preamble The Kenya Economic Update published by World Bank in March 2015 revealed that Kenya is one of the fastest growing economies in Sub-Saharan Africa, with a projected growth from 5.4% in 2014 to 6% in 2015.

(a) The domestic economy In 2015, the economic growth picked up in the third quarter on the back of a solid expansion across most sectors of economic activity with an exception of tourism sector which declined owing to security risks from terrorism. The Kenyan shilling generally held firmly against major trading currencies despite its depreciation against the US dollar, sterling pound and the euro. The weighted average commercial banks lending rate remained relatively high but stable. The exchange rate was been broadly stable as from October 2015. The external and internal balances improved significantly owing to the falling oil prices and strong public infrastructure spending. Inflation rose slightly but remained within the Central Bank’s target of 6.72%. The major challenge experienced was sluggish demand for exports and their declining production which widened the country’s fiscal deficit.

II. All Saints Cathedral Nairobi Audited Accounts 2015 The books of the church were audited by Mazars Certified Public Accountants and in their opinion proper books of accounts were kept and the financial statements of the church give a true and fair view the state of affairs of the Church.

(a) All Saints’ Cathedral Church During the year, the church consistently pursued its vision; “A Cathedral of spiritual nourishment and fellowship for ministry to the world;” through the theme (Growing to maturity). This is in view of the implementation of the strategic plan 2012-2016 whose main theme is “transforming the Cathedral, winning the city, changing the world.” We were able to increase our membership enrollment by 836 members. The financial statements include all the units.

(i) Church Income

In the year 2015, we received a total income of Kshs 190,850,103 as compared to Kshs 154,097,990 in 2014. This represents an increase of 24% (Kshs 36,752,113). This increase is as a result of your generous giving of tithes, offerings and also for hiring of the trinity centre and the car park.



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Our tithe, thanksgiving and general contributions are as summarized in the graph below:

CONTRIBUTIONS GRAPH FOR 2015 16,000,000.00 14,000,000.00 12,000,000.00 10,000,000.00 8,000,000.00

GENERAL

6,000,000.00

TITHE THANKSGIVING

4,000,000.00 2,000,000.00 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC



The Contribution Trend for 2015 is as follows:

CONTRIBUTIONS TREND FROM 2005 – 2015 250,000,000

200,000,000

150,000,000

100,000,000

50,000,000

0

2006

2007

2008

2009

2010 2011 CONTRIBUTION

2012

2013

2014

2015

Generally, we maintained a consistent growth in the giving and we encourage members to continue giving for the overall growth of the Cathedral ministry.

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(ii) Trinity Centre Income We received a net income of Kshs. 12,673,424 as compared to Kshs. 24,870,216 being funds from hire of the halls. This is a decrease of 49% attributable to the diversion of Gift Sunday proceeds to CTC. There was an increase of 15% on the Trinity Centre bookings this was because of the Trinity Centre Re- launch which helped to give the space more visibility. We are optimistic that members will use the facilities more in 2016.

(iii) Church Expenditure The church expenditure for the year 2015 was 186,045,013. This is an increase of 16% (Kshs 25,956,313) as compared to 2014’s expenditure (Kshs 160,088,700). This is mainly attributable to increase in ministry activities, security, advertising, cleaning and bank charges and commission costs. An analysis of the significant variances is as shown below. % increase/ Decrease

Value in Kshs

Security costs

23%

1,670,678

Cleaning

44%

942,715

Postage and telephone

50%

Bank charges and commissions

36%

74,814

The has been increased bank activities leading to increased bank charges

Advertising costs

233%

285,180

Cathedral sent out more advertisements to fill up the different positions that fell vacant during the year.

Clergy vestments

79%

(197,336)

This year there were fewer uniforms and vestments purchased during the year.

Professional fees

57%

(133,900)

This year we had fewer consultancy services than previous years.

Education and Discipleship pillar

41%

3,337,718

Ministry activities increased through a well attended youth camp in Uganda, increased children and teens activities and increased outreach to the schools and colleges through campus fellowship

Ministry placement pillar

40%

2,214,179

There was increased activity in the ministry through, training of attached clergy, international linkages, youth and teen conferences.

Evangelism and outreach pillar

60%

3,385,236

This year we had increased activities for evangelism like the Children’s vocational bible in Kayole, two medical camps in the year one during the mission month, we also increased the number of scholarship opportunities offered for needy students.

Attributes Increased security alerts necessitated security enforcement through deployment of additional security team and Marshalls With increase in congregation and hiring of the halls there was a subsequent increase in this costs which we have managed prudently.

(1,546,029) We have prudently managed this costs

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The church’s policy on outward giving is that 10% of the tithes and offertory shall be given out as outward giving in order to extend the work of evangelism to many. In 2015, we gave out a total of Kshs 14,107,070 towards outward giving and Kshs 4,291,826 towards education and sponsorship program for the needy members of the church to pursue education. Administrative expenditure increased by 7% by factors attributed to the variances explained in the table above. Ministry expenditure increased by 7,607,533 (24%) that is from Kshs 31,983,203 in 2014 to Kshs 39,590,736 in 2015 this was mainly attributable to increased ministry activities as stated in the Ministries reports.. The PCC and management exercised prudent management of Cathedral resources across ministries and administration.

(iv) Net Surplus for the year The total surplus for 2015 was Kshs 42,647,902. This is an increase of Kshs 16,521,094. (63%). Total surplus in 2014 was Kshs 26,126, 808. The increased giving of tithe and offertory led to the increased surplus which also enabled increased ministry activities during the year

(v) Cash Flow statement Cash and cash equivalents increased by 185%. This is because of the increased giving by the members.

Summary of Year 2012 financial report Below are the major highlights of our achievement during the year and we glorify God for His continued blessings.

Income Up by 29% 2015 – 190,850,103 2014 – 154,097,990

Expenses Up by 16% 2015 – 186,045,013 2014 – 160,088,699

Operating Surplus Up by 180% 2015 – 4,805,090 2014 – (5,990,710)



Overall Surplus Up by 63% 2015 – 42,647,902 2014 – 26,126,808

Capital and Reserves Up by 1% 2015 – 2,102,032,223 2014 – 2,073,588,875

Membership Up by 11% 2015 – 8,544 2014 – 7,708

II. ALL SAINTS’ CATHEDRAL CHURCH SCHOOLS (i) Overview The ASC School vision is to become a leading centre of excellence in Christian based education and leadership development. In the school we endeavor to shape the children’s’ destiny through provision of holistic education.

(ii) The All Saints’ Cathedral Primary School In 2015, the school posted a mean score of 365 marks. (367 marks in 2014). Though lower than the previous year the remarkable performance was as a result of the support from the Schools Management Board, committed dedicated staff and strong partnerships with our stakeholders. All the candidates scored good grades and qualified for admission to high schools of high repute. 31

(i) Income In 2015, the primary school realized a total income of Kshs 36,836,638 compared to 33,281,039 in the year 2014. This represents an increase of 10.67% (Kshs 3,555,599). (a) Expenditure Total expenditure in 2015 was 32,849,968 compared to 29,955,094 in 2014. This represents an increase in expenditure of 9.66% (Kshs 2,894,874).The increased expenditure is mainly due to increase in general repairs ( in the period the main fence was taken down twice due to the road expansion and the river beside the school bursting its banks) others costs include the cost of living adjustment on staff salaries and sports related expenses. An analysis of the significant variances is as shown in the table below: % increase/ Decrease

Value

General administration expenses

25%

34,801

There were more trips made relating to official duties in 2015

Catering expenses

26%

578,403

We did enhance the school menus

School supplies

29%

348,497

We increased our purchases of preschool teaching materials.

Printing and stationery

34%

(120,442)

Bulk purchase of stationery thus enjoying economies of scale

Telephone, postage and internet

37%

43,837

Mainly relates to payment for internet services

Security

63%

371,515

Change of service provider for improved services

Landscaping

99%

(1,972,975)

Most landscaping works were completed in 2014

Repairs and maintenance

728%

1,352,235

Mainly relates to fencing around the school along Ole Sangale and river bank side

Cost Centre

Attributes

Net surplus from operations The above scenario resulted in a net surplus of 3,986,670 compared to a surplus of Kshs 2,718,350 in 2014. The following is a summary of the primary school activities for the year 2015.

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Income Up by 10.6% 2015 – 36,836,638 2014 - 33,281,039

Expenses Up by 9.66% 2015 – 32,849,968 2014 – 29,955,094

Operating surplus Up by 19.87% 2015 – 3,986,670 2014 – 3,325,945

Unrecoverable school fees Down by 100% 2015 – 0 2014 – 607,595

Net surplus/Deficit Up by 46.66% 2015 – 3,986,670 2014 – 2,718,350

Enrolment Down by: 3% 2015 – 258 Children 2014 – 267 Children

(iii) The All Saints’ Cathedral Kindergarten (a) Income We received a total income of Kshs. 10,352,360.00 in year 2015 compared to Kshs. 11,157,220.00 received in year 2014.This is a decrease of 8%. In the year we also received an income of Kshs. 4,142,400.00 from class hire compared to Kshs. 4,093,947.00 received in year 2014. This was an increase of 1%. The management board has put in measures to ensure that the Kindergarten increases its enrollment in 2016.

(b) Expenditure The total expenditure on the other hand was Kshs. 12,318,942.00 compared to Kshs. 12,759,908.00 incurred in year 2014. This was a decrease of 4%. An analysis of significance variances is as shown below.

Cost centre

% Increase/ (Decrease)

Value in Kshs.

Attributes

Cleaning

40%

(43,946)

We have been able to prudently manage these costs

Internet and subscriptions

41%

26,334

We changed the service provider in order to improve the internet service

Repairs and Maintenance

335%

130,467

Repairs and maintenance went up due to renovation of new Baby care classroom and replacement of worn out ceiling soft boards in the classrooms.

(c) Net Deficit from Operations The above scenario yielded a net surplus of Kshs 2,243,975 against a surplus of Kshs. 2,253,665 in the same period in 2014. The following is a summary of activities of the Kindergarten year 2015.

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Income Down by 8% 2015 – 10,352,360 2014 – 11,157,220

Expenses Down by 4% 2015 – 12,318,942 2014 – 12,759,908

Operating Surplus/(Deficit) Down by 4% 2015 – (1,966,582) 2014 – (1,879,538)

Other Income (Class hire & Interest) Up by 1% 2014 – 4,142,400 2014 – 4,093,947

Net Surplus / (Deficit)

Enrolment

Down by 0.4% 2015 – 2,243,975 2014 – 2,253,665

Down by 20% 2015 – 87 Children 2014 – 104 Children

We thank God for His faithfulness in these institutions and we give God all the glory and praise for His continued steadfastness.

Mrs. Anne Owuor Hon. Treasurer

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ALL SAINTS’ CATHEDRAL CHURCH

CONSOLIDATED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015

MAZARS

35

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ALL SAINTS’ CATHEDRAL CHURCH

CATHEDRAL INFORMATION

for the year ended 31 December 2013

PAROCHIAL CHURCH COUNCIL Members The Very Rev Canon Sammy Wainaina Mr. Samwel Kiraka Miss. Grace Madoka Mrs. Anne Owuor Canon Jotham Kilimo Mr. Jared Ogutu Mr. Sam Ogutha Ms. Eva Mdachi Mr. James Ngeta Canon Macrine Owiti Mrs. Lizzie Musyimi Mr. Ben Wesonga Mrs. Caroline Githae Mr. Gideon Olawo Dr. Dan Oyuga Dr. John Kimani Mr. Guy Batsable Cornelius Walubengo Miss Jerop Too Mrs. Margaret Njoroge Mrs. Lucy Waruingi Mr. Arthur Ng’ang’a

Clergy and staff

— Provost/Chairman PCC — Vice Chairman PCC,Chair F&GPC — Hon. Secretary — Hon. Treasurer — People’s Warden — Provost’s Warden/Chair, Ministry Placement Pillar — Deputy Warden/Chair, Investment — Deputy Warden/Chair, Procurement — Chair, Property — Chair, Worship Pillar — Cathedral Guild Representative — Member — Legal Advisor — Hon. Clerk of Works — Chair, Evangelism & Outreach Pillar — Chair, Schools Board — International Community Representative Mr. — Member — Youth Chair — Mothers Union Chair — Chair, Education & Discipleship Pillar — Chair, Pastoral Care & Sacraments Pillar

The Very Rev Canon Sammy Wainaina — Provost Rev. Paul Korir — Asst. Provost & Worship Pillar Minister Rev. Francis Awando — Education & Discipleship Pillar Minister Rev. John Ikucha — Pastoral Care& Sacraments Pillar Minister Rev. Peter Nzimbi — Evangelism & Outreach Pillar Minister Rev. Kenneth Ofula — Teens Minister Rev. Lilian Karinga — Children’s Minister Rev. Alfred Apela — Youth Minister Rev. Josephine Ngahu — Pastoral Care Minister Mr. Moses Waweru — Finance Manager & Ag. Administrator

Registered office All Saints’ Cathedral Church, Kenyatta Avenue, P.O. Box 40539 – 00100, NAIROBI Principal bankers Barclays Bank of Kenya Limited, Queensway House, P.O. Box 30011 – 00100, NAIROBI CFC Stanbic Bank Limited, Upper Hill Branch, P.O. Box 72833, NAIROBI. Co-operative Bank of Kenya, Co-op House, P.O. Box 48231, NAIROBI SMEP Deposit Taking Microfinance, Kirichwa Road, Off Argwings Kodhek Road, P.O. Box 64063 – 00200, NAIROBI. Standard Chartered Bank (K) Limited Upper Hill Branch Harambee Avenue, P.O.Box 20053-00200, NAIROBI. Legal advisors

Kaplan & Stratton Advocates, Williamson House, 4th Ngong Avenue P.O. Box 40111 – 00100, NAIROBI.

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ALL SAINTS’ CATHEDRAL CHURCH Independent Auditor

Mazars, Certified Public Accountants (K), The Green House, 3 Floor Suite 8, P.O. Box 61120 – 00200, NAIROBI. KENYA. Telephone: +254 020 3861175/76/79 Wireless: +254 020 2517101/3 Cell phone: 0722 - 440270 / 0734 - 440270 Email: [email protected] Website: www.mazars.co.ke

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ALL SAINTS’ CATHEDRAL CHURCH

REPORT OF THE PAROCHIAL CHURCH COUNCIL for the year ended 31 December 2015 The Parochial Church Council submits their report and the audited financial statements for the year ended 31 December 2015, which show the state of the Cathedral’s affairs.

1. REGISTRATION

The Cathedral is registered in Kenya under the Provincial Synod of the Anglican Church of Kenya.

2. PRINCIPAL ACTIVITY

The principal activity of the Cathedral is spreading of the gospel.

3. RESULTS

The results for the year are summarized below: Consolidated Consolidated 2015 2014 Kshs Kshs Excess of income over expenditure 42,647,902 26,126,808

4. FINANCIAL STATEMENTS

At the date of this report, the Parochial Church Council was not aware of any circumstances which would have rendered the values attributed to the assets in the financial statements misleading.

5. ACCUMULATED FUND

The accumulated fund balances of the Cathedral are set out in page 8 of these financial statements

6. AUDITOR The Cathedral’s auditor, Mazars, has expressed willingness to continue in office in accordance with the terms of appointment. By order of the Parochial Church Council

_______________________ 3rd March, 2016 Very Rev. Sammy Wainaina The Provost

39

ALL SAINTS’ CATHEDRAL CHURCH

STATEMENT OF THE PAROCHIAL CHURCH COUNCIL’S RESPONSIBILITIES ON THE FINANCIAL STATEMENTS for the year ended 31 December 2015 The Parochial Church Council (PCC) is required to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Cathedral, as at the end of the financial year and of its operating results for the year. The PCC is required to ensure that the Cathedral keeps proper accounting records, which disclose, with reasonable accuracy, the financial position of the Cathedral. The Parochial Church Council is also responsible for designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of financial statements that are free of material misstatement whether due to fraud or error; selecting and applying appropriate accounting policies and making reasonable accounting estimates that are appropriate in the circumstances. The PCC is also responsible for safeguarding the assets of the Cathedral. The PCC accepts responsibility for the annual financial statements, which have been prepared using appropriate accounting policies supported by reasonable and prudent judgments and estimates, in conformity with International Financial Reporting Standards. The PCC is of the opinion that the financial statements give a true and fair view of the state of the financial affairs of the Cathedral and of its operating results. The PCC further accepts responsibility for the maintenance of accounting records, which may be relied upon in the preparation of financial statements, as well as adequate systems of internal financial control. Nothing has come to the attention of the PCC to indicate that the Cathedral will not remain a going concern for at least the next twelve months from the date of these financial statements. The financial statements were approved by the PCC on 3rd March, 2016 and signed on its behalf by:-

___________________________ ____________________ Very Rev. Sammy Wainaina Mr. Samwel Kiraka The Provost Vice Chairman, PCC

40

REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF ALL SAINTS’ CATHEDRAL CHURCH for the year ended 31 December 2015 Report on the financial statements We have audited the financial statements of All Saints’ Cathedral set out on pages 42 to 60 which comprise the statement of financial position as at 31 December 2015 and the statement of comprehensive income account, statement of changes in fund balances and statement of cash flow for the year then ended, and a summary of significant accounting policies and other explanatory information.

Parochial Church Council’s responsibility for the financial statements The Parochial Church Council is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards. This responsibility includes: designing, presentation of the financial statements that are free from material misstatements, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s responsibility Our responsibility is to express an independent opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements, plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements 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 Cathedral’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates madeby the Church Council as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion In our opinion, the accompanying financial statements give a true and fair view of the state of financial affairs of the Cathedral as at 31 December 2015 and of the financial performance and cash flows for the year then ended, in accordance with International Financial Reporting Standards. The Engagement partner responsible for the audit resulting in this independent auditor’s report is CPA Lucy Gichuki P/No. 1740.

MAZARS Certified Public Accountants (K) Nairobi 3rd March, 2016

41

ALL SAINTS’ CATHEDRAL CHURCH

STATEMENT OF COMPREHENSIVE INCOME

for the year ended 31 December 2015

Notes

2015 Kshs

2014 Kshs

INCOME OFFERINGS Main services Other services Thanksgiving

163,712,896 3,641,987 4,223,293

134,296,760 3,139,607 4,021,181



171,578,176

141,457,548

7,063,708

8,016,743

Ministries income

10,426,659

4,422,633

Social Outreach Ministries donations

1,781,560

201,066

OTHER INCOME Rental income

4

TOTAL INCOME

19,271,927

12,640,442

190,850,103

154,097,990

57,327,452 20,842,844 36,862,893 39,590,736

53,220,747 19,517,825 32,385,287 31,983,203

EXPENSES Staff cost Administration expenses Property costs Ministry expenses

5 6 7 8

154,623,925 137,107,062 Parish tithe to the Diocese 17,314,018 14,321,925 Outward giving 14,107,070 8 ,659,713 31,421,088 22,981,638 TOTAL EXPENDITURE 186,045,013 160,088,700 Operating surplus 4,805,090 (5,990,710) Finance income 9 771,080 1,190,245 Net Surplus from All Saints’ Primary School 10 3,986,670 2,718,350 Net Surplus from All Saints’ Kindergarten 11 2,243,975 2,253,665 Net Surplus from Trinity Centre 13 12,673,424 24,870,216 Net Deficit from the Bus Project 12 (2,024,297) (500,643) Net Surplus from Project (CTC and Nehemiah) 14 21,894,995 — (Loss)/Gain on quoted investments 19 (1,703,036) 1,585,685 SURPLUS FOR THE YEAR 42,647,902 26,126,808

42

ALL SAINTS’ CATHEDRAL CHURCH

STATEMENT OF FINANCIAL POSITION

as at 31 December 2015

2015 Notes Kshs FUNDS General fund 46,022,192 Special funds 15 31,454,381 Capital funds 16 375,711,806 Revaluation fund 1,648,843,844

2014 Kshs (8,189,882) 29,590,392 389,139,967 1,648,843,844

2,102,032,223 2,059,384,321 NON-CURRENT LIABILITIES Borrowings 26 — 14,204,554 Total funds and non-current liabilities

2,102,032,223

2,073,588,875

Represented by: NON-CURRENT ASSETS Property, plant and equipment 17 2,024,561,117 2,037,989,278 Prepaid operating lease rentals 18 120,251 125,717 Financial assets 19 7,167,572 9,650,028 Long term advances 20 — 171,000 2,031,848,940 2,047,936,023 CURRENT ASSETS Short term advances 20 176,974 462,405 Receivables 21 1,558,182 1,838,230 Prepayments and deposits 22 9,926,170 8,822,722 Bank deposits 23 49,907,151 8,478,400 Cash and cash equivalents 24 25,614,097 17,987,703 87,182,574 37,589,460 CURRENT LIABILITIES Payables and accruals 25 16,999,291 11,936,608 16,999,291 11,936,608 70,183,283 25,652,852 NET ASSETS 2,102,032,223 2,073,588,875 The financial statements on pages 42 to 60 were approved for issue by the Parochial Church Council on 3rd March, 2016.

The Very Rev. Sammy Wainaina. Provost

Mrs. Anne Owuor The Hon. Treasurer

Mr. Samwel Kiraka, Chairman, Finance and General purpose committee

43

ALL SAINTS’ CATHEDRAL CHURCH

STATEMENT OF CHANGES IN FUNDS

for the year ended 31 December 2015

Special Capital General fund fund fund Kshs Kshs Kshs At 1 January 2014 Surplus for the year

Asset revaluation fund Kshs

Total Kshs

34,794,094 403,022,287 (53,402,712) 1,648,843,844 2,033,257,514 —

—

26,126,808

—

26,126,808

Transfer to Special Fund

2 97,298

—

( 297,298)

—



—

Transfer to Capital Fund

(5,600,000)

—

5,600,000

—

—

—

—

—

—

—

—

Transfer to Capital Fund

—

Transfer to Capital Fund

—

Transfer to Special Fund

99,000

9,763,852 (9,763,852) (23,646,173) 23,646,173 —

(99,000)



29,590,392 389,139,967 (8,189,882) 1,648,843,844 2,059,384,321

At 1 January 2015

29,590,392 389,139,967

Surplus for the year

(8,189,882) 1,648,843,844 2,059,384,321

—

—

42,647,902

—

Transfer to Special Fund

1,735,989

—

(1,735,989)

—

—

Transfer to Capital Fund

—

11,837,871 (11,837,871)

—

—

Transfer to Capital Fund

—

(25,266,032) 25,266,032

—

—

—

—

Transfer to Special Fund

128,000

(128,000)

—

42,647,902

31,454,381 375,711,806 46,022,192 1,648,843,844 2,102,032,223

44

ALL SAINTS’ CATHEDRAL CHURCH

STATEMENT OF CASHFLOW

for the year ended 31 December 2015

2015 2014 Notes Kshs Kshs

CASH FLOWS FROM OPERATING ACTIVITIES Operating surplus

42,647,902

26,126,808

Depreciation

25,266,032

25,063,181

Amortization

5,466

5,466

Loss/(Gain) from investment

2,482,457

(1,809,296)

70,401,856

49,386,159

Adjustments for:

Operating surplus before working capital changes Trade and other receivables

280,048

(465,334)

Prepayments

(1,103,448)

(8,321,752)

Advances

285,431

(345,405)

Payables

5,233,683

(3,138,045)

Cash generated from operations

75,097,570

37,115,623

—

—

75,097,570

37,115,623

Interest received Net cash generated from operating activities

CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment

(11,837,871)

(9,763,852)

Net cash used in investing activities

(11,837,871)

(9,763,852)

CASH FLOWS FROM FINANCING ACTIVITIES Purchase of unquoted stocks

—

(2,711,616)

Repayment of long term borrowings

(14,204,554) (15,885,113)



(14,204,554) (18,596,729

Increase in cash and cash equivalents

49,055,145

8 ,755,042

Cash and cash equivalents at 1 January

26,466,103

17,711,061

Cash and cash equivalents at 31 December

75,521,248

26,466,103

45

ALL SAINTS’ CATHEDRAL CHURCH

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2015

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied over the years presented unless otherwise stated:

(a) Basis of preparation



The financial statements are prepared in compliance with International Financial Reporting Standards (IFRS’s). The financial statements are prepared under the historical cost basis of accounting and presented in the functional currency Kenya shillings rounded to the nearest shilling. The preparation of financial statements in conformity with IFRS’s requires the use of estimates and assumptions. It also requires management to exercise its judgement in the process of applying the Cathedral’s accounting policies. The areas involving a higher degree of judgement and complexity, or where assumptions and estimates are significant to the financial statements are disclosed in note 3.

(b) Property, equipment and depreciation

Property and equipment are initially stated at cost less accumulated depreciation and any impairment in value.



Depreciation is calculated on straight line basis, at annual rates estimated to write off carrying values of property and equipment over their expected useful lives.

The rates in use are: Organ 12.5% Audio visual equipment 12.5% Computers 30.0% Furniture and equipment 12.5% Generator 12.5% Motor vehicles 25.0% Music equipment 20.0% Public address system 12.5% Buildings on leasehold land over the unexpired lease period (2014 – 25 years)

The carrying values of property and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying values may not be recoverable. Impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of the asset’s fair value less costs to sell and value in use.



Gains and losses on disposal of property and equipment are determined by reference to their carrying amounts and are taken into account in determining the surplus/(deficit) for the year. On disposal of recorded assets, amounts in the revaluation surplus relating to the asset are transferred to the Statement of comprehensive income account.



If any such indications exist and where the carrying values exceed the recoverable amount, property and equipment are written down to their recoverable amounts.

(c) Prepaid operating rentals

Payments to acquire leasehold interest in land are treated as prepaid operating lease rentals and are amortized over the period of the lease. 46

ALL SAINTS’ CATHEDRAL CHURCH

Notes to the Financial Statements for the year ended 31 December 2015

(continued)

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (d) Special funds



Net contributions or costs allocated towards specific projects are credited or debited to the income statement in the year to which they relate. Costs incurred in the construction of buildings are included in capital work in progress and transferred to property on completion. Transfers to the special funds relates to funds set aside for major maintenance works and the church organ. The amounts relating to specific projects are transferred back to the general fund at the end of the project.

(e) Capital fund

Contributions received for the purchase of property and equipment are taken to a capital fund and transferred from the general fund over the expected lives of the respective assets.

(f ) General fund

This represents amounts which are expendable at the discretion of the Cathedral in furtherance of its objectives. Such funds may be held in order to finance working capital or capital investment.

(g) Financial assets







Financial assets are recognized initially using the trade accounting date which is the date the Cathedral commits itself to the purchase or sale. Financial assets carried at fair value through statement of comprehensive income are initially recognized at cost. The Cathedral’s financial assets fall into the following categories: Financial assets at fair value through the statement of comprehensive income. Financial assets are acquired or incurred principally for the purpose of generating a surplus from short term fluctuations in price of dealers’ margin. Such assets are classified as current assets and are carried at fair value where fair value gains or losses are included in the net surplus or deficit for the period. Receivables: Financial assets with fixed or determinable payments that are not quoted in an active market. Such assets vary classified as current asset where maturities are within 12 months after the balance sheet date. All assets with maturities greater than 12 months after the statement of financial position date are classified as noncurrent assets. Receivables are classified as trade and other receivables in the statement of financial position. Changes in the carrying amount are recognized in the income statement. Cash in hand and balances with financial institutions are classified as receivables and are carried at amortized costs.

(h) Foreign currenciy transactions

Assets and liabilities expressed in foreign currencies are translated into Kenya Shillings at the rates of exchange ruling at the dates of the transactions. Gains and losses on exchange are dealt with in the statement of comprehensive income in the period which they arise.

47

ALL SAINTS’ CATHEDRAL CHURCH

Notes to the Financial Statements for the year ended 31 December 2015

(continued)

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (i) Revenue recognition



Income is recognized to the extent that it is probable that the economic benefits will flow to the Cathedral and revenue can be reliably measured. The following specific recognition criteria must be met before revenue is recognized. Tithes and offerings are recognized when received or committed by the congregation.

(j) Taxation

Provisions for taxation have not been recognized in the financial statements, as the church’s principal sources of income are not subject to tax.

(k) Retirement benefit costs

The Cathedral operates a defined contribution pension scheme for its employees. The Cathedral contributes to a statutory defined contribution pension scheme, the National Social Security Fund (NSSF). Contributions are determined by local statute and are currently limited to Kshs. 200 per employee per month, with the Cathedral contributing a similar amount. The Cathedral also contributes to a registered provident fund at a rate of 10% of the basic pay per month per employee. Its obligations to the above scheme are charged to the statement of comprehensive income account in the year to which they relate.

(l) Receivables

Receivables are carried at original amount less an allowance for any uncollectible amounts. Specific provision is made for all known doubtful debts. Bad debts are written off when all reasonable steps to recover them have been taken without success.

(m) Payables

Payables are stated at their nominal value.

(m) Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and cash in. For the purpose of the cash flow statement, the year end cash and cash equivalents comprise of cash and cash equivalents as defined above.

(o) Contingent liabilities

Contingent liabilities are possible obligations whose existence will be confirmed only by uncertain future events or present obligations where the transfer of economic benefit is uncertain or cannot be reliably measured. Contingent liabilities are not recognized but are disclosed unless they are remote.

48

ALL SAINTS’ CATHEDRAL CHURCH

Notes to the Financial Statements for the year ended 31 December 2015

(continued)

2. FINANCIAL RISK MANAGEMENT



The Cathedral’s activities expose it to a variety of financial risks: market risk including (foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Cathedral’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Cathedral’s financial performance. Risk management is carried out by the management under policies approved by the Cathedral’s Parochial Church Council.



(a) Price risk Price risk arises from the fluctuation in the prices of the commodities that the Cathedral deals in. Purchase prices are determined by the market forces and other factors that are not within the control of the Cathedral.



(b) Credit risk Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks and financial institutions, as well as credit exposures to customers, including outstanding receivables. The utilization of credit limits is regularly monitored. No credit limits were exceeded during the reporting period, and management does not expect any losses from non-performance by these counterparties None of the financial assets that are fully performing has been renegotiated during the period. Exposure to risk has been quantified in each financial asset note in the financial statements along with any concentration of risk.



(c) Liquidity risk Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through adequate amount of committed credit facilities and the ability to close out market positions. Due to the dynamic nature of the underlying businesses, the Cathedral’s management maintains flexibility in funding by maintaining availability under committed credit lines.

3. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including experience of future events that are believed to be reasonable under the circumstances. Critical accounting estimates and assumptions Property and equipment Critical estimates are made by the Cathedral in determining depreciation rates for property and equipment. The rates are set out in note 1 (b) above.

Critical judgments in applying the Cathedral’s accounting policies In the process of applying the Cathedral’s accounting policies, management has made judgements in determining: • The classification of assets. • Whether assets are impaired.

49

ALL SAINTS’ CATHEDRAL CHURCH

Notes to the Financial Statements

(continued)

for the year ended 31 December 2015

2015 Kshs



2014 Kshs

4. BUILDING RENTALS

Staff Rentals Karen House Rentals Car park rent income



1,115,908 1,600,000 4,347,800

1,528,943 2,400,000 4,087,800

7,063,708

8,016,743

5. STAFF COSTS

Salaries and wages-Other staff * Salaries – Clergy Medical insurance Provident fund Staff training & welfare Internship programme NSSF



38,188,377 9,400,664 4,982,285 2,149,274 2,116,652 380,000 110,200

43,508,182 — 5,117,519 2,038,224 1,976,362 334,500 245,960

57,327,452

53,220,747

* The salaries for the clergy including all the statutory deductions are administered by the Diocese w.e.f. June 2015.

6. CHURCH ADMINISTRATION EXPENSES

Security Printing and stationery Cleaning Tea and refreshments Postage and telephone Audit and accountancy Bank charges and commissions Advertising costs Newspapers and magazines Clergy vestments Professional fees Foreign exchange loss



50

8,793,868 2,531,806 3,108,559 3,515,829 1,561,933 560,280 280,664 407,660 1 55,070 52,900 103,050 (228,775)

7,123,190 2,528,004 2,165,844 3,126,969 3,107,962 511,560 205,850 122,480 1 38,750 250,266 236,950 —

20,842,844

19,517,825

ALL SAINTS’ CATHEDRAL CHURCH

Notes to the Financial Statements

(continued)

for the year ended 31 December 2015

2015 Kshs

2014 Kshs

7. PROPERTY COSTS

Depreciation Repairs and maintenance Parking silo expense Insurance Water and electricity Finance costs Rent and rates Amortization of prepaid operating lease rentals



22,717,986 3,045,596 3,000,000 1,985,899 2,799,993 2,731,244 576,709 5,466

22,543,717 4,393,821 — 2,023,941 2,261,499 884,561 272,282 5,466

36,862,893

32,385,287

8,504,590 11,491,566 7,692,163 8,987,322 2,915,095

9,121,802 8,153,848 5,477,984 5,602,086 3,627,483

8. MINISTRY EXPENSES

Worship Pillar Education & Discipleship Pillar Ministry Placement Pillar Evangelism & Outreach Pillar Pastoral Care & Sacraments Pillar



39,590,736 31,983,203

9. FINANCE INCOME

Interest received

771,080

51

1,190,245

ALL SAINTS’ CATHEDRAL CHURCH

Notes to the Financial Statements for the year ended 31 December 2015

(continued)

10. NET INCOME FROM ALL SAINTS’ PRIMARY SCHOOL INCOME Fees Income

2015 2014 Kshs Kshs 32,431,931 28,773,840 159,000 171,000 324,000 336,000 3,323,812 3,281,909 597,895 718,290 36,836,638 33,281,039

Admission Fees Text Books Transport Income Other Income

EXPENSES Transport Advertising Audit fees Bank Charges General Admin. Exp Cleaning Annual licence Security Telephone, Postage & Internet Catering Expenses Proffesional fees Staff Cost Swimming Depreciation Printing and stationery Insurance -Property Landscapping Repairs & Maintenance Medical Insurance Water & Electricty School Supplies

2,941,120 122,148 192,096 105,980 172,485 69,657 50,000 962,143 162,022 2,817,758 25,000 16,378,340 198,100 2,181,757 231,933 472,371 26,050 1,538,089 2,248,642 399,758 1,554,519

3,011,321 — 175,392 99,052 137,684 86,405 50,000 590,628 118,185 2,239,355 — 13,859,835 206,000 2,161,916 352,375 472,371 1,999,025 185,854 2,623,936 379,738 1,206,022



Total All Saints’ Primary School expenses

32,849,968

29,955,094



Net Surplus from All Saints’ Primary

3,986,670

3,325,945



Un-recoverable School Fee

—



(607,595)



Net Surplus from All Saints’ Primary

3,986,670

2,718,350

52

ALL SAINTS’ CATHEDRAL CHURCH

Notes to the Financial Statements for the year ended 31 December 2015

(continued)

11. NET INCOME FROM ALL SAINTS’ KINDERGARTEN



Tuition



Registration



Transport



2015 Kshs

2014 Kshs

9,205,660

9,837,670

46,000

95,750

1,100,700

1,223,800

10,352,360

11,157,220

192,096

175,392



EXPENSES



Audit Fees



Bank Service Charges

34,443

43,211



Internet and subscriptions

38,294

64,628



Licenses and Permits

50,000

50,000



Depreciation

366,288

357,548



Cleaning

67,193

111,139



Lunch Catering

838,297

1,143,655



Water and Electricity

312,310

308,631



Property Insurance

112,188

112,188



Repairs and maintenance

169,447

38,980



School Activities

145,378

136,096



Staff Costs

8,654,433

8,712,779



Printing and stationery supplies

127,846

183,277



Swimming expenses

62,700

64,100



Telephone:Mobile

33,700

35,400



Transport expenses

1,114,329

1,222,884



Total expenses for all saints kindergarten

12,318,942

12,759,908



Operating deficit

(1,966,582)

(1,602,688)



Un-recoverable School Fee



Operating deficit for all saints kindergarten



OTHER INCOME



Rental income: Classroom Hire



Interest Income



Net Income from All Saints’ Kindergarten

— (1,966,582)

53

(276,850) (1,879,538)

4,142,400

4,093,947

68,157

39,256

2,243,975

2,253,665

ALL SAINTS’ CATHEDRAL CHURCH

Notes to the Financial Statements for the year ended 31 December 2015

(continued)

12. NET INCOME FOR THE BUS PROJECT



INCOME



Interest income

Church ministries transport



EXPENSES



Motor vehicle expenses



Depreciation



Salaries



Bank charges



Net Bus Project income

54

2015 Kshs

2014 Kshs

3,302,250

3,743,803

18,385

13,196

3,320,635

3,756,999

3,404,004

2,854,505

—

—

1,919,302

1,384,562

21,626

18,575

5,344,932

4,257,642

(2,024,297)

( 500,643)

ALL SAINTS’ CATHEDRAL CHURCH

Notes to the Financial Statements for the year ended 31 December 2015

(continued)

13. NET INCOME FROM TRINITY CENTRE



INCOME



Gift Sunday’s offering (Trinity Centre)



Rental income



2015 Kshs

2014 Kshs

—

17,107,209

22,562,857

19,609,608

22,562,857

36,716,817



EXPENSES



Cleaning

3,872,793

4,244,989



Repairs and maintenance

1,136,156

903,938



Audio visual

142,500

—



Electricity

2,785,815

2,729,660



Rental refunds

68,250

—



Generator fuel

4 15,994

—



Consultancy fee

30,000

—



Fundraising expenses

2 79,000

2 53,738



Advertisement

434,600

58,500



Bank charges

71,397

61,672



Finance cost

6 52,928

3,594,104



Total expenses

9,889,433

11,846,601



Net surplus from Trinity Centre

12,673,424

24,870,216

14. NET INCOME FROM PROJECT

INCOME



Gift Sunday’s offering (CTC)



Gift Sunday’s offering (Nehemiah Wall Project)



EXPENSES



CTC Expenses



19,334,843

—

4,242,586

—

23,577,429

—

1,680,874

—

4Cs Expenses

1,560

—



Total expenses

1,682,434

—



Net surplus from project

21,894,995

—

55

ALL SAINTS’ CATHEDRAL CHURCH

Notes to the Financial Statements for the year ended 31 December 2015 15. SPECIAL FUNDS







At 1 January2014



Transfer from General Fund



Transfer to Capital Fund



Transfer from General Fund

(continued)

Endowment Maintenance Organ Fund fund fund Total Kshs Kshs Kshs Kshs 8,531,087

25,068,525 1,194,482

34,794,094

2 97,298

—

—

297,298

(5,600,000)

—

—

5 ,600,000

—

—

99,000

99,000



3,228,385

25,068,525 1,293,482

29,590,392



At 1 January 2015

3,228,385

25,068,525 1,293,482

29,590,392



Transfer from General Fund

1,735,989

—

—

1 ,735,989



Transfer to Capital Fund

—

—

—

—



Transfer from General Fund

—

—

128,000

128,000

25,068,525 1,421,482

31,454,381



16. CAPITAL FUND

At 1 January 2014



Additions during the year



4,964,374

Fixed assets reserve Kshs

Capital work in progress Total Kshs Kshs

399,728,983

3,293,304

403,022,287

9,712,951

50,901

9 ,763,852

Depreciation charge for the year

(23,640,706)

—

(23,640,706)



Amortization charge for the year

(5,466)

—

(5,466)



At 31 December 2014

385,795,762

3,344,205

389,139,967



At 1 January 2015

385,795,762

3,344,205

389,139,967



Additions during the year

11,837,871

—

11,837,871



Depreciation charge for the year

(25,260,566)

—

(25,260,566)



Amortization charge for the year

(5,466)

—

(5,466)



At 31 December 2015

372,367,601

3,344,205

375,711,806

56

57

17

2,011,592,753 2,662,796 2,014,255,549

15,492,844 10,164,568 25,657,412

25,657,412 10,231,138 35,888,550

1,978,366,999

1,985,935,341

Depreciation At 1 January 2014 Depreciation charge At 31 December 2014

At 1 January 2015 Depreciation charge At 31 December 2015

Net book value At 31 December 2015

At 31 December 2014

2,009,101,968 2,490,785 2,011,592,753

Land and buildings Kshs

At 1 January 2015 Additions At 31 December 2015

Cost At 1 January 2014 Additions At 31 December 2014

Property, plant and equipment

1,582,800

1,538,596

4,554,753 1,523,337 6,078,090

3,327,242 1,227,511 4,554,753

6,399,295

5,126,407

3,821,806 1,272,888 5,094,693

2,548,918 1,272,888 3,821,806

10,221,100

10,221,100

10,221,100

6,137,553 6,137,553 1,479,133 7,616,686

10,221,100

Organ Kshs

6,137,553

Generator Kshs

24,028,749

18,927,992

25,783,281 6,387,324 32,170,605

19,552,027 6,231,254 25,783,281

49,812,030 1,286,567 51,098,597

46,605,359 3,206,671 49,812,030

Furniture and equipment Kshs

(continued)

17. PROPERTY, PLANT AND EQUIPMENT

for the year ended 31 December 2015

All Saints' Cathedral Nairobi Notes to the Financial Statements (continued) For the year ended 31 December 2015

Notes to the Financial Statements

698,792

3,377,124

6,329,485 1,473,143 7,802,628

6,012,262 317,223 6,329,485

7,028,277 4,151,475 11,179,752

6,012,262 1,016,015 7,028,277

Computers Kshs

1,882,860

1,105,240

11,638,248 777,620 12,415,868

10,570,787 1,067,461 11,638,248

13,521,108 13,521,108

10,860,628 2,660,480 13,521,108

-

1,675,250

4,877,533 4,750 4,882,283

4,877,533

4,877,533

4,877,533 1,680,000 6,557,533

4,877,533

4,877,533

Music Motor vehicle equipements Kshs Kshs

ALL SAINTS’ CATHEDRAL CHURCH

14,117,237

11,099,305

14,071,520 3,595,832 17,667,352

10,711,718 3,359,802 14,071,520

28,188,757 577,900 28,766,657

27,849,757 339,000 28,188,757

Audio Visual equipment Kshs

3,344,204

3,344,204

-

-

3,344,204 3,344,204

3,293,303 50,901 3,344,204

Capital work in progress Kshs

2,037,989,278

2,024,561,117

96,734,037 25,266,032 122,000,069

73,093,331 23,640,706 96,734,037

2,134,723,315 11,837,871 2,146,561,186

2,124,959,463 9,763,852 2,134,723,315

Total Kshs

ALL SAINTS’ CATHEDRAL CHURCH

Notes to the Financial Statements

(continued)

for the year ended 31 December 2015 18. PREPAID OPERATING LEASE RENTALS

Prepaid operating lease rentals are recognized at historical cost and subsequently amortized over the lease period. The movement in prepaid operating lease rentals is as follows:



COST



Balance b/fwd

2015 Kshs

2014 Kshs

2 04,925

2 04,925

79,208

73,742

5,466

5,466

84,674

79,208

120,251

125,717

Depreciation

Balance b/fwd



Charge for the year



Balance c/fwd

The Prepaid Lease Rentals relate to the lease of the All Saints’ Cathedral Nairobi LR No. 209/5775/2. The other two parcels owned by the Cathedral are in Karen and Belle vue Ref. No. LR No. 13723 (Karen) and (Belle vue) Ref No. 209/12512 all located in Nairobi.

19. FINANCIAL ASSETS 2015 2014

Quantity



Quoted stocks



Price



NIC Bank ordinary shares of



(Loss)/gain in revaluation



As at 31 December



Unquoted stocks Metropolitan Health Services



Kshs

Kshs

43

64

5,252,736

3,667,051

(1,703,036)

1,585,685

82,074

3,549,701

5,252,736

Ordinary Shares of Kshs 30.00 each

10,752

3 22,560

3 22,560

Ordinary Shares of Kshs 11.00 each

200,000

2,200,000

2,200,000

210,752

2,522,560

2,522,560

Money market investment

1,095,311

1,874,732



7,167,572

9,650,028



82,074

58

ALL SAINTS’ CATHEDRAL CHURCH

Notes to the Financial Statements for the year ended 31 December 2015 20. STAFF ADVANCES

(continued)

2015 2014 Kshs Kshs



Staff advances Due within the next one year



Due after one year



The long term advances are for the previous staff car scheme that was stopped in the year 2013.

176,974 —

21. RECEIVABLES School fees receivable



Allowance for doubtful debts





171,000

2015 Kshs



462,405

2014 Kshs

3 69,719

112,231

(47,615)

(47,615)

1,558,182

1,838,230

2 84,529

284,529

22. PAYMENTS AND DEPOSITS

Electricity and water deposit



Telephone deposit

9,520

9,520



House rent deposit

124,000

124,000



Assets deposits



Pre Paid Clergy School Fees



2,352,200

—

70,000

244,889

Prepaid Insurance

4,817,211

5,911,142

Prepaid expenses

2,268,710

2,248,642

9,926,170

8,822,722

49,907,151

8,478,400

49,907,151

8,478,400



23. BANK DEPOSITS

Fixed deposits



24. CASH AND CASH EQUIVALENTS

2015 2014 Kshs Kshs



Cash at bank 25,489,097



Cash in hand

125,000

53,066



Total cash and cash equivalents and bank deposits 25,614,097

17,987,703

59

17,934,637

ALL SAINTS’ CATHEDRAL CHURCH

Notes to the Financial Statements for the year ended 31 December 2015 25. PAYABLES AND ACCRUALS



Accounts payables

Rental deposits Prepaid rent Pre-paid School fees

(continued)

2015 2014 Kshs Kshs 9,031,330

7,270,726

2,319,158

945,922

420,000

—

5,228,803

3,719,960

16,999,291

11,936,608

26. BORROWINGS

Consolidated Bank loa

—

—



SMEP DTM LOAN A/c 1 EPCO

—

4,702,259



SMEP DTM LOAN A/c 2 Sound

—

9,502,295

—

14,204,554



27. EMPLOYEES

The average number of employees for the Cathedral during the year was 93 (2014 : 83).

28. CONTINGENT LIABILITY

This entails a dispute between the church and one Mr. Paul Mpungu with regard to the designs he made and we have used to fundraise for the Wall Project. Mr. Paul Mpungu is pushing through his lawyer to be paid Kshs. 2,520.000.

29. COMPARATIVES

Where necessary comparative figures have been adjusted to conform with changes in presentation in the current year.

30. CURRENCY

The financial statements are expressed in Kenya shillings.

60