Charity Registration No. 1062357 THE BRITISH FRIENDS OF THE BIBLE LANDS MUSEUM JERUSALEM ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 THE BRITISH FRIENDS OF THE BIBLE LANDS MUSEUM JERUSALEM LEGAL AND ADMINISTRATIVE INFORMATION Trustees B Borowski R Kaufman A Noam Zvi Nixon Delegated Management A Noam Charlty Number IC62357 Address 16 Great Queen Street London WC28 SDG Audltor Harold Everett Wreford LLP 2nd Floor 38 Warren Street London WIT 6AE Bank•rs Santander UK pl THE BRITISH FRIENDS OF THE BIBLE LANDS MUSEUM JERUSALEM CONTENTS Pa8e Tru5tees' Report ststémènt of trustees, responsibilitie5 Independent auditorfs report Consolidated Statement of flnancial actlvities ststsment of financial artivities Consolidated Ststement of financial position io Statsment of financial position li Consolidated Ststement of cash flows 12 Notes to the financlal statements 13-24 THE BRITISH FRIENDS OF THE BIBLE LANDS MUSEUM JERUSALEM TRusfEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021 Thè trus￿8 pr858nl their annual report together ￿1￿ thè c￿$011d￿t6d finanual sta18ments ofthe ¢harty and its subsKliaries for the yeareThYed 31 March 2021. The financial statamènts have been prppared in accordance wilh the accounting politiès set out in note 1 to the financial Statements and comply with th8 charty'5 trust deed dated 18th March 1997, thg Charitias Act 2011 and 'Accounting and Reporting by Charities. Statement of Re¢omrnendEd practi￿ applicable to thari*'es preparing thelr financ181 st8tements in aCt0rdan￿ with the Financi81 Rew)rting Standard appl￿ble in the UK and Republic of Ireland IFRS 1021 (effective for accounkn.ng periods frcKn 131 January 20191.. ObJe¢tlv•8 and *CllvM*8 Th8 chaiity'5 obi8cts are to hold the trust fund and its intome and to apply t￿M for the fvrtheran￿ ol edL￿￿"On by supporknng Bible Lands Museum in Jerusalem. The trustees confim that they have referr&Y to the gukyan Contair￿ in the Char￿ty commissi￿.$ genèral guidanc8 on public tenefit when revthwro the charrty's airns and obje¢tNes The polic￿$ adoptsd In furt￿￿nce of these objects are to distribute the ftsnds as and then thg trustegB see fit. The aim of Ihe charity is the fvrtheran￿ of edu¢ation. There have been no changes in the policw during the year. The strategies empbyed to gchi6v6 the ch8rity'5 obje¢t1veB We￿ to provide grants to the Bible Lands Museum in Jerusalem which 8ssi5ts th8 charity in me8ting its aims. The trustees have psid du8 regard io guhlance issuecl by the Chanty Commission in dèading what activib8s thg charity should und8rt8ke Donations of £576,OC6 12020 £578,7451 were made solely to tt)e Blble Lands Museum in Jeru5alern during the year, this being the only insttution that LYdn8fits from th8 gr8nts rna¢e by charty It has managed to achi8ve th by re￿I￿ry rental incotne frotn investsn8nt pro￿rt￿$ whith It owns. from gift aid donation5 arNI frorn interest rec8ivable from banks The tnjstees, policy is lo build their assols io a ￿Ve1 whg18by the trust i[￿0￿8 from their as5els can maxirni58d and accrued on a regular, $u$tsinable and In¢rea5ing level In ord8r to be ab18 to ap￿Y all thia incom8 to meet requ1￿ments of the chariws objects. The tharity has no FAans for any sKJnificant d8V8ILyments. A¢hl?vem?nts and pgrformance The tharity is sab"sfied with rts overall achievements and perf0rfflan￿ during the year and has continLJed to meet its obl"￿tiveS regard to the bvel of donations made during the year to the Biblg Land$ Museurn in Jewsalem for th& furtheranc& of 6ducth"on81 purpogag. Financial revi￿¥ The group's reser￿ held at 31 March 2021 amounted to £9,718,31512020- £9,597,857) which includ85 valuaton reserve deficit of £1,761.676. The trustees ¥BV8lued tho group's investment properbes to £14.637.895 in tt)e year ended 31 March 2021 which indud88 8 reduction for unarnortised18as8 Incentives of £43,354 The trustsos ar& not awa￿ of any matèrrdl changes 5in¢e this valuatyon. The charity has conb'nu8d to lulfil ts objethv of makin9 donations loi charitable purposes for thg ftJrth8ranrx of ￿u(￿tIon during the year R•MrvM polley It is the policy ol the chanty to maintain unrestricted lunds, which are the free reserves of the charty. at a lev which the trl￿teeS think ¥wropriate after eonsidering the future o)mmitments ol the charity and tha lik8 Iministrative wsts ofthe charrty forth8 forthcoming year T1￿ trustess 8r8 confid8ntth8t there are suffi(xent fun(Is to maintsin tt)e runniro of the charity. THE BRITISH FRIENDS OF THE BIBLE LANDS MUSEUM JERUSALEM TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 Under rts trust deed the charty has Ihe power to make any invesknent in it sees ￿ The ￿Stee5 coroider the retum on invesbrenls to be satisfactory. Rl$k fo¢tors The InJ$tee$ have aw$sed the rnajor risks to which the chanty is exposed, in parkncular those rdated to th8 operaty'ons and finances of the tharity. an¢J are satisf￿1 trat Systems are in pla￿ to mitigate ts expc6ure to the major risks. A ￿￿eW of the risks chanty may fa￿ a￿ assessed annually. A key element of financial risk B the setting of a reserve p()licy and its regular review by the twstees. The charity intends to continue making available for ¢Jonation to the worthy cause It stspportg lor fts eharitablè puwes. Wth tlus in mind, tho trustees are constanuy seeking to find means by **ich they are abè to inugase the level ol funds th8 tharty is able to distribute. 8tructur•* gov8rnance and management The charity 15 an unincorporated UK wi8tgred charity 8nd 13 gOVerr￿ by its twst de&J. The trustees who seryed duiirKJ the year were". B Borow5ki R Kauhnan A Weis J Waller A Noam Zvi N￿on (Retired 29 Septemi*r 20201 (Retired 29 Septsrnber 20201 The trustees a￿ gppointe(I tiy the charty's trust ¢Je8d. The charty has tho powér to appoint add￿onal trustees a5 It cons￿e[S fit to do so. The charity 15 m8nagad by its trustses. The charity Is organised so Ihat its trust8è5 meet ￿gula￿Y to m8n8ge its affairs A Noarn has be8fj ¥POinted by the trust885 to tnanage the day io day 0￿ratiOnS oftfw th81ity. There are restrcti'orts imposed by the goveming document cOn￿mi￿ the way tha chafity can oFerate. ot￿r than that opernth.on must be fort￿ furtherance ol the charitys obj'ects. The ￿l$t￿, reportwas appro*d by the Board of Trustees. A Noam Trustee 241.,120 THE BRITISH FRIENDS OF THE BIBLE LANDS MUSEUM JERUSALEM STATEMENT OF TRUSTEES, RESPONSIBiunES FOR THE YEAR ENDED 31 MARCH 2021 The trustees are responsible for prèparing the Trustee$. Report and the financial statements in 8ecord8nce applicable law and Unrted Kirodorn Accounbng StaThJards Iunited Kingdotn G8ll8rally Accept&1 Accounting Practi1￿). The law appluble to th8rits.es in ErvJland and Wales requi￿$ the trusteès to pr8par8 financial statements for each financi81 year which give a true and fair view ol the state of sffa5T5 of the charity of the incoming resour￿ and 8Wubon of resources ol the charty fortt)at year. In pr8paring Ihese financial slaternents. the hjstses are requlred to.. - select 3uitsble eccount'ro poIrc￿9 and then 8pply them consistenly.. - observe the methods and principles In tt)e Ch8riti85 SORP.. - mak8 judgements and 8stimatss that are reason*)le and Fyudènt", - stste whether applicable ar￿unty'r￿J standards havè iwn followad, subject to any rnaterial departures disdosed and explaSned in the financial statemants., and - prepa￿ the financial statements on tha gthng coneèm basis unbs$ it is inarpropriate to presume that the charity will In operation. Ttte trustees a￿ ￿sponSible forkeeping suffiaent accotJntrThJ records thatdisdose wth reasonats￿ a(turacy at any tim8 finanrial position of the charty and enable them to ensure thai the fingnaal statements eLThply with the Charitsès Act 2011, thè Chartty IAccount and Reports) Regulab"ons 2008 an¢J the prowsions of the trust deed. Thèy are also responsible for safeguarding the assets of the ehanty and hence foi taking re85onab18 St8ps for the prevention and detecti￿ of fraud and olher IrregularttS9s. THE BRITISH FRIENDS OF THE BIBLE LANDS MUSEUM JERUSALEM INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE BRITISH FRIENDS OF THE BIBLE LANDS MUSEUM JERUSALEM Oplnlon We have audited the fin8n(aal siatements of The BrilK8h F￿ndS of the Bib￿ Lands Mu$eutn Je[Usa￿￿ lthe'charity'l and its subsidiaries lthe'group'l for the year ended 31 March 2021 set out on pag8$ 6 to 22 The f￿&￿¢1￿1 reporting framework that has bean 8ppIK8d In their prepaTation is appl￿ble law and Unlted Kingdom A¢wunbng Standard5 includiro Finanual Reportlng S￿ndard 102. the FinarKial Reporbng Standard apph'¢4b￿ in the UK and Ihe Republic of Ireland (United Kingdorn Gengrally Acceptsd AccountsrvJ Practicè). In our opinion the financ4al Statem￿19.. give a true and fair view of the state of tha group'8 and th8 charity'$ affairs as at 31 March 2021 and of Its incoming r88our¢es and appI￿￿on of rp50urces. lorth8 year then ert¢e¢l.' have tEen properfy p￿pared in accordanc8 wth United lthngd(m Generally A¢￿pted Accounting Pr8ctic8', h8v& prepared in actordanc8 vlth thè requirements of the Charrties Act 2011. Bas18 for oplnl We ¢ondu¢tetl our ajdil in accordanc8 with Inlem8tiono1 Standaols m Auditing IUKI IISA5 IUKII and applicable law. Our r&sponsibilitie$ under those Standards are furtr￿f described in the Audilots res￿)nSibIlit￿S for the audit of the finana85 $tslernents 5ectson of our report. ￿ are inde￿nd￿nt of the dwrity in 8ccwdanc8 with the 81hKal raquirem8nt8 that are vant to our audrt of the finanaal statements In the UK. induding the FRC'S Eth￿￿1 Stsnd8rd, and we have fuffilled our other ethiral responsibilitie5 in acccrf8nce with th88e requlrements. We bgl*ve that Ihe audrt evid6n¢e we have obtainsj 1$ sufficient and approprKgt8 to prowde 8 ba$Ls for ouropinion. onc1￿10n$ rolatlng to golng concom We have rM)thing to report in re5￿cl of the follthwThJ rnattets Sn relauon to which th8 ISAS ￿K> requlre us to report to you where.. the trustees. use of the 9oin9 con¢¢m basi5 of ac¢our*ts'ng in Ihe preparation Df thB financial 5tstemgnts is not appfoprlate.. or the tru5tee5 have not disclosed in the finandal statements any id8ntffied material unc*tsinties that may c481 sVjnrf￿8nI doubl about the group's or the ¢harity'g ability to (x)ntsnue to adopt tr going ¢wm b881$ ol accounbng for a P8riCNJ of at least montt)$ from the dat8 when th8 f nanoal statements are aulhorisad fLY is8￿. ¢)th•r Informatlon The other infomiab.on Comr￿$ the infolmalon inclu￿d in the annual reporl otherthan the finarKlal statements our audrtorfs report thereon. The truste85 are resp￿SIb￿ fer lh8 otsr Infomatron. Our ownh)n on the finanaal statements does not U>V8r Ihe other infomalon and. except to Ihe ex￿nt Q1he￿I$9 e￿*￿Y $tated In our r8porL we do not 8xpr8&8 any fotm of assuran(x conclusion thereon. In con[￿tiOn with our audrt of th6 financ#81 stst8m8nts, our responsbility is to read the other infornat'en and. in doing so. con$id8rwho¢her tho Dther Informab"on 1$ materially Inconststsnt with ihe finan¢k21 slatements or our knowledg8 obtained In the audit or otheTw5e appear5 to be materially rnisstated. Wwe ￿entify such material incon51$tonc*$ or akyarent material M￿StateMentS. we 8re required to detemlre whether there 1$ a materi81 misstat￿ent in the finanri81 sl8tem8nts or material rnis51atsm8nt of the oth8r 1nforrnat￿n. If. ba88d on the work we have Forf0￿￿ed. ￿ ￿)ndUde thai there k% a matsrial misstatement of this other infemation,. wa are requlred lo report that fact We have ￿thIng to report in Ihu% re9anl. THE BRITISH FRIENDS OF THE BIBLE LANDS MUSEUM JERUSALEM INDEPENDENT AUDITOR'S REPORT TO THE TRusfEES OF THE BRITISH FRIENDS OF THE BIBLE LANDS MUSEUM JERUSALEM ma￿r9 on whlch we are ￿qUIred to report by exceptlon We have nothing to report in respect of the following matters in r81a*"£xi to whKh tha cha￿16S (A¢￿Unts and Reports) Re9uLgb"on 2008 requires us to raport to you rf. in our opmion". the inforniatsn gfven In th& Trust8eB' Rèport 1$ in¢on&$tsni in arry mat8rio1 ospeci with thg finanlyal 5tstsm8nts,' $uffi¢ienl attounting reo)rds ha¥e not been kept,. or tho chartbes financial gtsierr*nts ar• nol in agr8em8ntwith th8 accounting records and r￿rn8,. or we have not receNgJ all the InfO￿n810n and expkgnationswe r4uire forour audtt. Respon8lbllltle8 of truBta88 As expLgined more fulty in the Statemenl of Tru$tee$' Re$ponsi￿lI￿"eS. Ihe tru$tee$ a￿ respDTtsible foT the preparation of the finanoal statsments and for belng sats$r￿d that they give a true and fair ￿lew, and for SLrh intsrnal ￿ntrol as thg Irusteos determirE Is r￿ceSSary to enab￿ the p￿para￿on of fjnanoal statemènts that are fte• from Inateri￿ m15stat￿nent whether due to fra￿j orerror. In Pfeparirg the finanaal stat8m8nls, the truste8$ are resw)Si￿8 for a$so￿n9 tho d)afity'$ ablty to o)nts'nue a8 a gthivj corKern. disclosing, as applicable, matters related lo going rA)nr*m and using the goiry ¢ont%m b¥$i$ of 4tt¢)untsng un185s Ihe INst8es either intsnd to wse cp8r80ons. or have no realistic attemative but to do $0. Authtor'8 respo￿lbIlItIeS for the audlt of the flnanclal statemenls have been appointeo as auditor un(Jer Section 151 Oft￿ Charib"88 Act 2011 and rep)rt In attordancewilh ts kt anol re￿nI reguL8tsons mad& or having effect Ihereunder. Our objecti5￿ are to ￿taIn reasonab￿ a88ur8nr* atx)ut wF*iher the finan(xal statements a$ a are free from material mts$tstemeni. whether due lo frautl or error. Hnd to issue auditorf5 report that includes our Op￿niOn. Reasonable as5uTrnce a hvJh kvel of assurance, bul Is not 8 guarantse Ihal an audrt conductsd in accordance with ISA5 IUKI wll a￿ays detect a matenal Tni5StaternentY4hen It ex￿ts. Misstatsments can ari%e from traud orerror and are nsk1ered matenal if. Individually or ¥i the aggregatÈ. they ¢ould reasonably be *xpe¢ted to irfuen￿ Ihe e¢onomi¢ 11ecisKn8 of useT¥ tsken on the ba5Ks of these financial slat*renls. Irregulanlas, Inc1udlng fraud, are In&ianc8s of non4omplian¢& ￿tt) laws and rogulations ￿ design pro¢edure$ in lir* wth our ￿spOnsibl111￿$, outllr*d above. lo¢etect material tnisststements in ￿SpeCt of irregularil*$, in¢luding Ita￿1 The extend to which our proc&Jures are capab￿ of detecting irregul8rrtEs. induding fvaud is detaI￿j bekhy.. In id8nlfying and assessiry the r￿kS of material misstatement In res￿Ct of irregularthes, including fraud aTrJ non- cornplian¢* wilh1*4ts and regulations. we eon$thTod thg fdlowing.. The nature of the Sector and the impact of COMD-19 on financial and operating perfomance and Our discussions viith Ihose charged %Yith manauemenl and wvernanr* Including whether they had kntsw￿￿ of 8ny a¢tual, $u$p8¢tsd or alleged fraud". EnquirBs of managemenL iDduding obteining and rew8wing support *JGuTnentatron. Mn¢*ming tho charity's policies and procedures relatsro to.. enOfy1ng. e¥aluab"r¥ 8nd o)mplylng with law$ and regul8t"on8 and wh8ther they ￿Ere awar8 of any InStance5 of non-c0rnp1iar￿. detecting and responding lo th8 risk of fraud and whether they h8ve knowkdgp of any aetrjol. sujpethd er al￿ged fraud. Intsmal eontrols establ*￿ to mftbJats r&ks rewed to fraud or nonJ grant u)miknents We remain8d alert to any indir2ts.ons of fraud. material mr&8tatemenl or non4ompliance Lgw$ and regulabons throughout the audit inG1￿11Th9 those Telating to the fm8naal 5tgiements. Awareness Ihroughoutthe audit for nonT the y•¥rf Ngt mo¥•mènt In funds Taxation 131,811 111,353} 623,215 120,458 624,483 Fund balances at 1 April 2020 9,597.857 8,973,374 Fund balafi¢￿ at 31 March 2021 9,718,315 9.597,857 The ¢onsolkJatad statement of financial ai#wities includes all gains and lossés r&cogni8ed in the year. All incorne and expenditure dérive from conts'nuing activit*s. THE BR￿ ISH FRIENDS OF THE BIBLE LANDS MUSEUM JERUSALEM STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021 2021 2020 Not•9 me Donations Investrnents Ott¥er income endovmients from: 48,000 37,0 619,975 625.115 298,658 295.542 Totsl Income and ondowm•nts 966,833 957,657 ndltur• on: Raising funds 47,036 3.150 Charitable activities 548.251 588,445 Othèr 12 51,287 54.684 Totsl Mour¢￿ expended 646,574 62e,279 Net Ooss}Igain on inveslrnents 13 14LM),OWI 600,or)J Nèt ineom•ll8xpenditurèl for thg yearl Net movement in funds {79,9411 931,378 Fund balaft￿$ at 1 April 2020 9.714.331 8.782.953 9,634,390 9.714,331 Fund balances at 31 March 2021 9,634,390 9.714,331 The statement of ffingncial actwthes i￿ludeS all gain3 and 105ses recognised in the yeaf. All income and expendi￿re derive from continuing actiwties. THE BRITISH FRIENDS OF THE 818LE LANOS MUSEUM JERUSALEM CONSOUDATED STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 MARCH 2021 Flx•d •*uts 14 1J 14.W7M5 3J2M1 14.614,541 370,418 16,020h66 15.214,9S7 Detstorn falung due •ller(Th J*er Debtors falling yw 17 17 318,151 280.248 299.Y22 362.105 212.7S4 268,301 878.721 843,170 Crndlkn: •m•unl¥laMkng d LoanB and ovgttlraf 2.1S2XKI 83224 1,940.339 2.617,500 84296 1,863.489 19 4.136 4,$45.284 13257*21 (3,7tr1.114) 11.T61124 11.512,843 Loons aTK¢ ovethft8 18 1044NYa P.Q44,P￿} I1.914,￿) 9,718.315 9.597,857 9,718J15 9,597,857 718J15 9.597 Th• bytho Trtthl￿ ts 2GI 01 Izoi 10 THE BRITISH FRIENDS OF THE BIBLE LANDS MUSEUM JERUSALEM STATEMEKf OF FINANc￿L posmoN FOR THE YEAR ENDED 31 MARCH 2021 2020 Flx¥d *•••ts Inve8tmnl Pmp Invoslm•nts 14 7J37,895 3.$01,￿5 7.891.541 3.563.856 ¢urr•nt w•t• Dèbto￿ falling ¥ft&on& 0gbtor8 l&lliro kn wlthlTr or*) J Cash 41 b4nk 11.038,98 11,458.397 17 17 318.751 1,423,191 193.184 362.105 1.147,185 198.539 1.935.1(13 1.707,829 Ci•dltorn". amoun1¥ t*llln9 (k wlthtn or*• y••r Loans and overdr&fts TaxatK)n and s￿1 Oth•r 18 150,(UI 1.$87, t,89S.245 1,P•25,lYI 2,080.210 3.451095 Ptst curMtll•blllll•¥ (145,101} 11.744.086) 10.893.858 9.714.331 Cmdltorn: •nount• t*lHry 4￿r arKE owrdrafts 18 (1259.4661 9,634,300 9.714231 Inwm• fvnd• Unr&stn¢ted fiJAth- gwtar 9.834.390 9.714231 9.834,YJO 9.714,331 Th8 &¢C￿nts ty tho Tnth on ZGloilzozL 11 I vpo text her8 THE BRITISH FRIENDS OF THE BIBLE LANDS MUSEUM JERUSALEM CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021 2021 2020 Not•s Cash flows from opgr¥ting activiti•s Cash absorbed by operations 1782,1241 1827,7881. Invostlng activitie5 Rent and interest received pu￿hase of unliste(l investments 1,155.700 112,1551 1,149,270 Nèt Cash lused Inllgenernted from Investing activitie 1.143.545 1.149.270 Finan¢ing a¢tivitlg8 Repayment of bank loans 1330.0(X)I 1330,0001 Ngt cash used In financing •etiviti•s 1330,000) 1330.OCQI Net Inernasolldecreasel in cash and cash •qulvalents 31,421 18.5181 Cash 8nd cash e(wlvalents al beginning of year 288,301 276,819 Cash and cash wulvalents 8t end of year 299,722 288,301 12 THE BRITISH FRIENDS OF THE BIBLE LANDS MUSEUM JERUSALEM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Aceountlng ptsllcles CornpAny information The British Friends of the Bible Lands Museum Jerusalem is an unincorporated charity wIste￿d the Charity Commis&on In England and Wa18s. Th8 reg15tsr8d public addr888 is 16 Great Quegn Street. London WC2B 5DG. nature of the Charitys operatsons arKI athwbes are detaiw in the Trustees, report. Th8 group consists of the Brrtish Fri8nds of the Bible Lands Museurn Jerusal8m and all of its subsidiaries. 1.1 Aecounting convention The financi81 slalements have been prepared in aecordance wrth th8 ch8rity'5 tnjst deed d8ted 18th Marth 1997, the Charits"es Act 2011 and, "Accounting and R$pOr￿ng by Charitias.; Statèment of Recommended Pr8ctsc8 applicatrle to charths p￿paring their accounts in accordance with the Finan￿81 Reporting Standard app4icable in th8 UK and Republic of Ireland IFRS1021' leffectlve for accounlJrKJ p8riods from 1st January 20191. The charty is a Pubkc Be￿fft Entity 88 d8fined by FRS 102. The finan¢k?I ststements have departed from the Chariles (Accounts and Raportsi R￿ulationS 2008 only to the extent required io prowde a twe and fair view. This departu￿ has involved following the Statement or Rècomrnanded Piactice for charits5 applying FRS 102 rather than the version of the Statarnant of Recommended practi￿ bvhich 18 referred to in the Regulations but which has Sin￿ Leen wrthdrawn. The fin8n¢i81 stat9ments are prepared in sterting. which is the functs.onal CUf￿n¢Y of the cl)arity. Monetary amounts in these finanud statements are founded to the n&arest £. The financial statements have b6en prepared und8r the historic81 cost convention, modified to indude the revaluation of freehold prcyerties and to induda invesknent propartios and cwtain financial instrum￿ts at fair value. The principal a￿Un1'ng policies adop￿ a￿ set out bebw. 12 Golng Con¢•m Th8 majority of the income receive¢J from the Group is investsnent income from its investrn&nt prop9￿"6$ whKh aw 18t to comrn8Tual tenants. The Group has continued to receive this income desprte dKsrupts"¢)ns to the ectnomy by COVID-19. As a result, thè trustees hav6 a reasonable 8XPWtation th8t the Group has athquat8 resources to continue in operational existence kn the foreseeable ftrtU￿ aThJ therefore continue to adopt thè going ￿ne0rn basis of accounting In preparirw the annual consolidated financial 5taternentS. 1.3 BasF3 of Con801idatlon The consolidated Statement of finatKial activities and financial position include Ihe financial statements of Ih8 chanty and its subsidiary un¢Jertakings made up to 31 March 2021. The results of sul)sidiarles sold or 8cquired are included in the statement of financial activit￿9 up to. or from date control passes. Intra- group turnoY8r and profits are elirninaieoj fully on consolidation. 1A Charrt•bl• funds Unrestric18d fijnds ar8 availabl8 for use at Ihe discretion of ￿ trustees in furtherance of thair chants￿8 obje¢bves unless the fuThJs have dèsignatwj forothèr purposès. 1A Incorning resources Income Is recognised when the charity is lagally entitled to rt 8ftef any parfomance condib.ons have baan m&t, the amounts can be measure(I reliaUy, aThJ it is probable Ihat 1Th￿Me w511 be r￿￿ed. Cash donats.ons are recognise(l on receipt. other donatlons are recognised onca the charlty has noofiad ol the donatK)n, unless performance condth.ons require deferral ol the amount 13 THE BRITISH FRIENDS OF THE 81BLE LANDS MUSEUM JERUSALEM NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 AccoUn￿n9 pollcl•8 Invgsbment income is measured at the fair valua of tho con$id&r8tK)n ratsivad or tsc8N8ble and represents arnount5 re(xNable from letting of Investrnent propert￿5, distnbulion trorn unlisted Investrnents and bank interest net of discounts, and VAT. Under operab.ng lease ag￿ements when the Trustses provhJe incentsves to it5 tenants. the cost of the InCenti￿S is rscognis6d ovar the ￿age tem, on 8 5tr8igh1l￿ b85i8. 88 a reduction in rentsl inwme. 1.6 Resources •xp8ndod Expendrture is accoursted for on an aecru81 basis èxdusivè of VAT. Govemance costs are the costs associated wrth the g0Veman￿ arrangemènts ol the charity. Thèse costs art assoosted wth constitutional and 518tutory requirements and Indude any costs asswiated with the strategic managernent ol the charity'5 actMtie5. Other ￿$0￿r￿S expended are for loan interest payable on the inv&stm8nt propwts'es Own￿ by th8 chanty ublised for raising rental incc*ne. 1.7 Inve8tment properti88 InvtrstTnent prop8rty, which is property heky to eam rentsFs andlor for capitsl appreciatKJn. inib.ally recognised at C05t, which indL*I8s the purchase cost and any direcdy attributab18 expenditure Subsequ8nUy it is measure¢ at fair value at the reporbng end date. The surplus or deficit on r&valuath)n is fecoonised in net In¢crtlexrendrturel for the year. tdir value cannot without undue ￿$t Cf thrt, inv85trnent prop8rty is accoun￿ lor as tangible fixed assets. 1.8 Fixed asset inveslrnertts Fix&1 asset investrn8nts ar8 inib'ally mea$ure£l at CD8t and subs8q￿nI1Y measurod at CC6t loss any accurnulated impairment losses. Thp inve5tment5 are assessed for impairment at each reporting date and any Impalm￿nt losses or revorsals of impaimient10ssgs ar8 recOgn￿ed irnrnedial81y in nat incomellexpendrturel forthe year. A subsidiary is an entr'ty controlled by the charity. Control is pow8r to govem the financi81 and operating poliryes of the entity so as to obtain benefits from its actiw*'es. 1.9 ¢a*h and eash •gyl¥al•nts Cash and cash equivalènts indudè cash in hand, ¢JeposAts hekj at call with banks. other short48rm Iv4uh investments wkth original maturits'es of three months or ￿$. arkl bank ov8rdralts. Bank overdrafls are shown within borrowing3 in currant IKqbilit88. 1.10 Financial in8trum•ni# Thè group has elected to appty prowsi¢Jns ol Secton 11 'Ba8ic Finanryal Inatrumonts. and S•th"on 12 'Oth6r Financial Instruments Issues. of FRS 102 to all of its finanual instsuments. Finanaal instruments are recognised in the group's ststement of financial p05th.on wh8n th6 grujp tecomes party to the cx)ntractual provBion6 of the instrument. Finsnrial a558ts and li8bilitie5 ar8 offset, with thè not amounts presented in the financial statem8nts. when there ￿ a legally enforceable F￿ht to set off the re￿nised amounts arKI there is an intenbon to sèttla on 8 n&t basis or to realkse the asset and 58tU& th8 liability ￿Mu￿ar￿U$ly. Ba$le Ilnanelal•s$•ts Basic finantsal a5sats, which Ind￿je debtors and cash and bank balanL*S. art inilally measured at transaction pnc* induding transaction costs and are sub58qU8nfy catr*d at amortised (osl using the effective interest rnethcml ￿n￿sS the arr8ng8rnent conststutes a financing transaction. there th8 tr8n$8ction measured at the present value of the future retsipts discounted at a market rate of interest. Financial assets dassified as recgNable wthin ¢no y¢ar arè ntst amorbsed. 14 THE BRITISH FRIENDS OF THE BIBLE LANDS MUSEUM JERUSALEM NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 Accounting policies fln8n¢lalllablllde$ Basic financial liabilitses. Induding cteditors and bank bans a￿ initr'ally ￿￿nised at transacbon price unless thè arrangemant corksts"bJt8s a financlng transaction. where the debt instrument is measured at prt8ent val￿ of the future r￿ipts (JIs￿Unted at a mathet rate of interest. Finanoal li8bilitiès Classrf￿ 88 p8y8ble within one year ar8 not amorti58d. Debt itthtn8nts are sub58qU8nly G8rr￿d at amortiged rJ)st. using Ihe effe¢bve Inte￿$t rate method. Tr8de creditors are obligations to pay for go￿1$ or Ser￿￿$ that have been acquired in thè ordinary course of operab.ons from supplier5. Amounts payable are clasSif￿d as 0Jr￿nt liabilities il paywnent 15 du8 within ore ygar QT bss. If not. they are presented as nOn-￿rrent liabil￿.e$. Trade credrtors arè r8(wnised init'ally at tran58Cton pric￿ and subsequenlly meaSU￿d at amortised Cost using the effedive int8r85t rnethoj. Der8cognilion of Ilnanclal Ilabllltles Financial liakn'lits'es are de￿cognIsed when the ¢harity'$ contrettual obligations exp￿ or are discharyed or Cancell￿1. 1.11 Fund structur• Al fvjnds hdd are unrestrcted income funds. C￿eal a¢eountlng ￿￿mateS and judgomants In the applicthon of the charSty's accounting poliaes. th8 Injstees 8re required to make judgements, estimates and assumptions about the caffying amount of a55ets and liabilit￿5 that ar8 not IB8dily apparent frorn other sources. The esbmates and assou8t8d 8ssumpl'on8 are based on historical experience and other factors that 8re CDn5idered tD ￿ relevant. Aciual results rnay difFer trom these e5brnates. The 88timat85 and underfyiThJ assumptions a￿ rewewe¢J on an oThJoing basi8. RevIs￿r￿ to actounting trstimate5 are reccgnis*S In the period in whith ihe 8stirnate 15 r8wswJ where the r8Vi5ion aff8cts Dnly that penod. or in the peri￿ of the rewsion and future penods where the revision sffeots both current and frJtute p8riths The m8in areas of Un￿rtaInty a￿ the valuation of invesbnent properties and impaiment ol fixed a85et investmgnts. Donallon8 Group Charlty 2021 2020 2021 2020 Donations and gffts 48,0(L) 37.000 15 THE BRITISH FRIENDS OF THE BIBLE LANDS MUSEUM JERUSALEM NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 Inv•stmgr Group Charity 2021 2020 2021 2020 Rental inttjme Interest recewable 1,155.678 22 1,149,177 619,*5 10 625,077 38 1,155.700 1.149,270 819.975 625,115 Rental income arises on investment propertios held in the United Kingdom. Interest recewable arises from Bank interest and late payment of rent. Othgr Incom• Group Charlty 2021 2020 2021 2020 Nel incorne due from 8 8ubsidiary LLP Insuranco commission 292.125 6,533 287,459 8,063 8,385 10,374 8,385 10,374 298,658 295,542 Ralslng funds Group Charfty 2021 2020 2021 2020 Investment enses Ag&nts' f8es and property related expense8 53.255 6,950 47,036 3,150 53,255 6,950 47,036 3,150 16 THE BRITISH FRIENDS OF THE BIBLE LANDS MUSEUM JERUSALEM NOTES TO THE FINANCIAL STATEMENTS (CONTINUED FOR THE YEAR ENDED 31 MARCH 2021 Charitsble odivitiety Group Charlty 2021 2020 2021 2020 Grant fund￿n9 of athttiès (sèa note 8) G0Veman￿ costs (see note 91 576.( 8.673 578,745 29,644 576,CM)6 127,755} 578,745 110,3001 584.679 608,389 548,251 568,445 Grnnts payablo Charitable activities include grants of £578,01￿{2020 £578,745) paid overseas to the Bible Lands Museum, Jeru$al&rn, this being the only Institu￿On that benefrts from the grants made by the charity. Support Costs Group Charity 2021 2020 2021 2020 Gov•mane• Govtrnaneè Gov•mant• Gov•mant¢ of Costs Costs Costs allocation Amortised lease incertNes Audit and accountanw fees Legal and profes￿On￿l Bank charges Foreign exchange Igainl1106S Commission charged 143.3541 21.600 29.426 l.l￿7 1681 143,473) 22,750 37,343 1,055 11,920 49 (43.3541 12,650 2.330 685 {661 143.473) Governance 13,250 Govemancè 7,319 Governance 635 GovemaF 11,920 Governanc£ 49 Gove￿￿{* 8,873 29,644 {27,7551 {10,3001 Analysed betsyeen charrtable act1¥At￿S 8,673 29,644 127,7551 {10,3001 Th•rè ar• no $p•¢ifi¢ Support Cost& 10 Auditor's r•muMrdtion The analysis of audrtorfs remvneralion is as folhiws.. Group Fwd payablè to th• eh*rlty's auditor and assocbatos: ChaEity 2021 2020 2021 2020 Audrt ofthe charity's annual accounts 16.200 22,750 10,250 13,250 11 Employee¥ There were no employees during the year. 17 THE BRITISH FRIENDS OF THE 81BLE LANDS MUSEUM JERUSALEM NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 12 Other Group Charlty 2021 2020 2021 2020 Finanang costs 144,340 171.090 51,287 54,684 144,340 171,090 51,287 13 Not ￿n51{105596) on Inv05tmerts Group Char 2021 2021 2020 2020 Revaluatkin of investments properties.. Th8 Brit￿h F￿ryJS of th8 Bibk Lands Museum de￿58 1400,0(NJI 600,0￿) I400,OL￿? Gi￿arnesh (Broxboume & Port81ad81 Limrted 150,OCQ 1350.0001 1250,OCOI 25D,OLXI 1400.0(KtI 14 Inv•stm9nt prop0rtio¥ Group 2021 Charlty 2021 Falr value At 1 April 2￿20 Unamorbsed kase Inc8nt￿V8S Net gains through tsirVa1￿ adjustrnonts 14,844,541 43,354 1250.0001 7,894,541 43,354 1400,0001 At 31 Marth 2021 14,637,895 7,S37,895 Inve&trn&nt pro￿￿"e& fxJmpri8e$ of Iroehokl prope￿8. The fair ¥alu8 of the group's In￿strnent properbe$ at 31$t Mar¢h 2021 ts £14.637.89512020- £14.844.54118nd ha8 been arriv&J at on the b8515 of ¥ valuation C8rrwJ out 8t this dale by a property management company, Lgndswo¢xJ de Coy LLP. The v8luatr.on w8S arrwed at by reference lo Tnathet evideTFce of Iransaclion pri￿$ for $im118r properries in its Iccation and takes into account the slate of the ontal martlet in the aw where the properbes are SI￿ated. Accordiryly, the trust88, A Noam adcpled thi5 valuat￿n at the balanL¥ shgel date. If investrrent pro￿ltieS were slated on an hi8torical cost basis ratrw than a fa￿ value b8$i$. Ihe amounts wou have been included 88 folknws.. Gr¢wp ¢hartty 2021 2020 2021 2020 Cost 16.761.875 18,781,675 9,312.142 9.312.142 AccJJmulated depre￿atsort Carrying amount 16,781,875 16.761.675 9,312,142 9,312,142 18 THE BRITISH FRIENDS OF THE BIBLE LANDS MUSEUM JERUSALEM NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 16 Fix•d 4sset inve¥lm¥nts Group Ch•rlty 2021 2020 2021 2020 Notss Investments in subsidiar*s Loans to sub%diaries Unllsted irveslmgnls 3,118,491 370.416 352,571 3.193,437 370,416 382.571 382.571 370,416 3,501,065 3,563,856 Movèment in fixed a¥$et inveslments Group Share¥ Totsl Cost or valuatlon At 31 March 2020 Additions 370,416 12,155 370,416 At 31 March 2021 382,571 370,418 Carying amount At 31 March 2021 382,571 370,418 At 31 March 2020 370,416 370,416 Movement in fixed asset Investments Charity Lo•nts Shares Totsl Cost or valuatlon At 31 March 2020 Additions Repayrnenls 3,193,437 370,419 44.5(X) 1107.2911 3,563,856 44.500 1107,2911 At 31 March 2021 3.130.646 370,419 3,501,065 Coryhng amount At 31 March 2021 3.130.646 370.419 3.501,C65 At 31 March 2020 3,193.437 370,419 3.563,856 The chanty's investment in ts 5vbsidKgries represents the cost of the called up ordinary share capital of the following entit￿$ registered in England and Wales.. Gilgamesh Hull LLP- £2 Gilgamesh (Broxbourne & Portsladel Limited- £1 THE BRITISH FRIENDS OF THE BIBLE LANDS MUSEUM JERUSALEf•l NOTES TO THE FINANCIAL STATEMENTS (CONTINUED FOR THE YEAR ENDED 31 MARCH 2021 16 Flnanclal Instrumonts Group Charity 2021 2020 2021 2020 Carrying amount of financlal a8sèts Debt in5tmments measured at amortised cost 578,999 Equty instruments measured at cost less impa¥ment 574,869 4.860,433 4,702,727 382,571 370,416 382,574 370,419 Cayrylng amount of financial li•bilib*¥ Measured at amortised cost 6,117,648 6,395,975 3.304,711 3,412.501 17 D•btor¥ Group Char 2021 2020 2021 2020 Amounts falllng dug wlthln one y•ar. Other deblors 260,246 212,764 172.378 188,497 Amounts duè from subsvjiary und8rt8kiTrg 1.250.813 958,688 260.248 212,764 1,423,191 1,147.185 Amounts falling due aftor more than ono year. Olher debtors 318,751 362.105 318,751 362,105 Total debto 578,999 574,869 1,741,942 1.509,290 20 THE BRITISH FRIENDS OF THE BIBLE LANDS MUSEUM JERUSALEM NOTES TO THE FINANCIAL STATEMENTS {CONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 18 Loans and ov•rdraft8 Group Charrty 2021 2020 2021 2020 Bank loans UnarnoTtised finance costs 4,220,(KJO 142,6911 4,550,OLXJ 1,437,SK) {17.5141 128.0341 1,587,500 4,177.309 4,532,486 1,409.466 1,587,500 P8y8ble within one year Payable after ona yoar 2,132.500 2,617,500 150.CNX) 2.044.809 1,914,986 1,259,466 1,587,500 The bank loans are secJJred by fixod chargas ovar the freehok1 propgrt*s. The long-tem loans bear interest at the rate of 2.5% above LIBOR per annum and are ￿pay￿￿e by 26 June 2024 lor the eharrty. 5 March 2026 lal the fixed rate ol 0.74% above a margin of 2.5tskn per annuml for Gilgarnesh IBroxboume & Portsladel Limitèd and 20 May 2021 lat the rate of 2.45% above LIBOR per annuml for Gilgamesh Hull LLP, the subsidiaries of thè charrty. The 198n with Gilgarnesh Hull LLP has been renegotiated subsequent lo the year end (see note 261. 19 Creditors: amounts falling du• within on• y•ar Group Charity 2021 2020 2021 2020 Olher creditors A¢cruals and deferr&Y income 1,724,173 216,186 1,663,435 1.724,173 200,054 171.072 1,663.436 162,355 1,940,339 1.863.489 1,895.245 1.825,791 21 THE BRITISH FRIENDS OF THE BIBLE LANDS MUSEUM JERUSALEM NOTES TO THE FINANCIAL STATEMENTS (CONTINUED FOR THE YEAR ENDED 31 MARCH 2021 20 Trust•os' •xpensws and rnmunardtlon and r•latèd party transactlons Trustees are not remunerated. The trust deed includes a professvjnal c*arging dause pemiitting rèmunaration of tiuste8s who are solicitor$. accountants and other prof8ssionals. A Noam is a director ol Novest Limited which provKles propety advise to the charity's propeity investment subsidiary, Gi￿arnesh (Broxbourne & Portsladel Limited at a ￿st of £26.40012020- £27,000>. The following wère outstanding al the reporting end dat8.. Charlty and Group 2021 2020 Olh&r relalod parties 1.711,637 1,862,150 At the balance sheet date the Charty owed interest free unswwred loans of£1,309,741 12020- £352,815) to Gilgamesh Properties Limit8d, a eornpany registered in Israel arKI £401,6 12020- £1,309.3351 to Gijgarnesh Properties Limrted, a c£Jrnpany regisleied in the UK. Both companies are controlled by Mrs. B. Borowski, a Trustee of tre Charity. Both loans are repaYa￿e on (Jemand. 21 Control Thè charity is controlled by ils irustees. Subsldlarf•s Details of the chafty's sub$idiarie$ at 31 March 2021 are as follows.. N*m• of und•rtaklng and eounty of In¢orporatlon or residency Naturg of busSn•Bs Class of Shareholdlng % H•ld Dlr•ct Gilgamesh Hull LLP- United ￿'ngdoM Gilgarnesh (Brtsxboume & Portsladel Limited- United Kingdom Propety Invastment Ordinary 1￿.00 Property investment Ordinary 1(Q.00 At 31 Marth 2021 th8 aggregate ofthe share capital and re5er¥es amounted as follows.. GI￿arnesh Hull LLP- £1,250,815 $urplu5 GikJarnesh18roxboume & PortsLadel Limited- £83,926 sutplus THE BRITISH FRIENDS OF THE BIBLE LANDS MUSEUM JERUSALEM NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 23 Nèt incomè of ju￿1￿18r1•8 The charity has fvrfo wholly owned investment subSKliar￿S itKorporated in the United Kingdom which own invèstment pro￿rtI•$. A summary of the subsi(Jiaries trading resuts lorthe y88r ar& givon belw. GlIgan￿h Hull LLP 2021 2020 In￿M Adtninislralive expenses Interest ￿ceNable 365,441 375,020 173,3261 {87,6011 10 Sufplus ieiained for the year 292,125 287,459 GilgameBh {Broxboume & Portsladel LlmEted Income Administrative expenses Interest ￿te￿&ble In￿ase￿(deCreasel in fair value of Investment prope￿e$ Corporation t8X 172.124 151.372 1110,3741 1109,5491 15 150.LXM) 1350,0001 111.3531 1,288 Surplusl{lossl for the year 200.399 1306,8941 Cash generated from operntionB 2021 2020 Surptus for the year 120,458 624,483 Adjustments ftx.. Investment income recognised in profit or loss Fair valuè10ssesllg8insl on invÈstmenl properti&s Unamorti88d lease incentives {1,155.7QOI11.149.2701 250,LXK) 1250,0001 143,3541 143,4731 Movements in worknng capital.. IlncreasellDecrease in deblors Int7easellDecre8sel in creditors {4,1301 137,3651 50,802 27,837 Cash absort)8d by oporntlons {782,1241 1827,7881 23 THE BRITISH FRIENDS OF THE BIBLE LANDS MUSEUM JERUSALEM NOTES TO THE FINANCIAL STATEMENTS (CONTINUED FOR THE YEAR ENDED 31 MARCH 2021 25 Analysis of changes in net Idebt) funds At 1 Aprfl 2020 At 31 hlarch 2021 Cashflows Cash at bank and in hand 268,301 Loans falling due within onè year 12,617,500) Loans falling dLte after more than one year {1.914,9861 31,421 485,OD) {129,8231 299.722 I2,132,5￿) 12,(H4,809} (4,264,185) 386,598 (3,877,587) 26 Post balance sheet events Subsequent to the year-end on 2 June 2021, the charity obtained ￿ extension of rts subshliary. Gilgamesh Hull LLP'S loan with Santander Bank Plc. The existing loan which was repayable in full on 20 May 2021 was extended lor a period of 5 years on 2 June 2021. In addition, subsequent to the year-and, the charity sokl all its unlisted investments. 24