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2021-03-31-accounts

Registered number: 04094203 Charity number: 1084272

UK FRIENDS OF THE ASSOCIATION FOR THE WELLBEING OF ISRAEL'S SOLDIERS

(A Company Limited by Guarantee)

TRUSTEES' REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

UK FRIENDS OF THE ASSOCIATION FOR THE WELLBEING OF ISRAEL'S SOLDIERS

(A Company Limited by Guarantee)

CONTENTS

Page
Reference and Administrative Details of the Company, its Trustees and Advisers 1
Trustees' Report 2 - 6
Independent Auditors' Report on the Financial Statements 7 - 10
Consolidated Statement of Financial Activities 11
Consolidated Income and Expenditure Account 12
Consolidated Balance Sheet 13
Company Balance Sheet 14
Consolidated Statement of Cash Flows 15
Notes to the Financial Statements 16 - 28

UK FRIENDS OF THE ASSOCIATION FOR THE WELLBEING OF ISRAEL'S SOLDIERS

(A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021

Trustees

Z. C. Remez

P. A. Sussmann

J. E. Swidler

R. J. Kemp

Company registered number

04094203

Charity registered number

1084272

Registered office

1st Floor Sackville House, 143-149 Fenchurch Street, London, EC3M 6BL

Principal operating office

Unit 7, 56b Crewys Road, London, NW2 2AD

Company secretary

Z. C. Remez

Honorary president

E. Hellerstein

Independent auditors

Wilder Coe Limited, Chartered Accountants & Statutory Auditors, 1st Floor Sackville House, 143-149 Fenchurch Street, London, EC3M 6BL

Page 1

UK FRIENDS OF THE ASSOCIATION FOR THE WELLBEING OF ISRAEL'S SOLDIERS

(A Company Limited by Guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021

The Trustees (who are also directors of the charity for the purpose of the Companies Act) present their Annual Report together with the audited financial statements of UK Friends Of The Association For The Wellbeing Of Israel's Soldiers (the company and the group) for the year 1 April 2020 to 31 March 2021. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the group and the Company qualify as small under section 383 of the Companies Act 2006, the Group Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Objectives and activities

a. POLICIES AND OBJECTIVES

The principal objectives of the charity as set out in the governing documents are:

  1. The relief of need and suffering of serving and discharged Israeli soldiers and their families;

  2. The advancement of education of serving and discharged Israeli soldiers; and

  3. To provide or assist in the provision of facilities for recreation or other leisure time occupations in the interest of social welfare.

There have been no changes in the objectives since the last Annual Report.

b. STRATEGIES FOR ACHIEVING OBJECTIVES

The strategies employed to achieve the charity's aims and objectives include undertaking fundraising activities and annual dinners to raise money to be able to donate to Israel through the connected charity The Association for the Wellbeing of Israel's Soldiers in Israel and other approved organisations so that the funds can be spent to meet the above objectives.

c. PUBLIC BENEFIT

The Trustees confirm that they have, in the administration of the charity, paid due regard to the public benefit guidance published by the Charity Commission under section 4 of the Charities Act 2011.

Page 2

UK FRIENDS OF THE ASSOCIATION FOR THE WELLBEING OF ISRAEL'S SOLDIERS

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance

a. REVIEW OF ACTIVITIES

In pursuit of the objectives listed above, the charity and its subsidiary undertook the following activities during the period:

The charity held an annual virtual fundraising event which contributed to the donations received by the group. Due to the COVID-19 pandemic it was not possible to hold an in-person event.

The charity received donations including gift aid in the year totaling £348,940 ( 2020: £739,121 ). The charity also received government grants relating to the Coronavirus Job Retention Scheme of £8,077 ( 2020: £Nil ).

Donations are made at the full discretion of the trustees of UK Friends of the Association of Israel's Soldiers ("UK Friends of AWIS"), and are given only to support projects that the Trustees deem to be consistent with the objectives of UK Friends of AWIS. The Trustees regularly travel to Israel to ensure that the funds sent from the UK are applied consistently with the charity's objectives. The charity does not undertake projects directly themselves but provides funding for projects being undertaken by other organisations that have been preapproved by the Trustees.

The total level of donations made to other charities totaled £155,544 ( 2020: £483,364 ).

Example of projects that were funded and the level of funding provided during the current year are:

Financial review

a. RESERVES POLICY

The charity had total funds of £467,654 as at 31 March 2021 ( 2020: £461,163 ). The charity's subsidiary undertaking, UK AWIS Trading Limited had equity shareholders' funds of £2 as at 31 March 2021 ( 2020: £2 ).

Donations received by the charity are applied for the purposes of the charity as soon as it is practicable. The charity retains sufficient reserve funds to meet expenses. No reserves are designated.

b. Principal funding

The charity is funded through donations received throughout the year. Expenditure during the year is mainly in relation to the annual dinner which is organised in order to raise money to meet the objectives of the charity.

Page 3

UK FRIENDS OF THE ASSOCIATION FOR THE WELLBEING OF ISRAEL'S SOLDIERS

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management

a. CONSTITUTION

The company is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 12 October 2000.

The company's charity number is 1084272 and its registered company number is 04094203. The company is registered at the following address:

1st Floor Sackville House 143-149 Fenchurch Street London EC3M 6BL

b. METHOD OF APPOINTMENT OR ELECTION OF TRUSTEES

The management of the Group and the Company is the responsibility of the Trustees who are elected and coopted under the terms of the Articles of Association.

Trustees are appointed at the discretion of the acting trustees at the Annual General Meeting.

There is no set policy in place for the induction and training of new trustees and this is arranged as required.

c. ORGANISATIONAL STRUCTURE AND DECISION MAKING

The charity holds a 100% shareholding in UK AWIS Trading Limited, whole principal activity is to support fundraising for the charity through its trading activities. There are no other members of the group.

The board of Trustees of a minimum of three members, administers the charity.

The Trustees who serviced during the year were as follows:

Z. C. Remez P. A. Sussmann J. E. Swidler R. J. Kemp

The honorary president is E. Hellerstein.

The company's bankers during the year were Bank Leumi (UK) plc, 20 Stratford Place, London, W1C 1BG.

The company's auditors are Wilder Coe Ltd, Chartered Accountants & Statutory Auditors, 1st Floor Sackville House, 143-149 Fenchurch Street, London, EC3M 6BL.

d. PAY POLICY FOR SENIOR STAFF

All directors, who are also trustees of the charity, give their time freely and no director received remuneration in the period ( 2020: £Nil ).

Page 4

UK FRIENDS OF THE ASSOCIATION FOR THE WELLBEING OF ISRAEL'S SOLDIERS

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management (continued)

e. RELATED PARTY RELATIONSHIPS

The charity has a very close relationship with The Association for the Wellbeing of Israel's Soldiers in Israel, a charity registered and operating in Israel.

A summary of transactions with this party is set out in note 18 to the financial statements.

f. RISK MANAGEMENT

The Trustees have assessed the major risks to which the Group and the Company are exposed, in particular those related to the operations and finances of the Group and the Company, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

Plans for future periods

a. FUTURE DEVELOPMENTS

The charity's plans for the future are consistent with the objectives identified within this report. The charity will continue to support and fund projects and activities in line with the objectives as the Trustees see fit.

TRUSTEES' RESPONSIBILITIES STATEMENT

The Trustees (who are also the directors of the Company for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 5

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UK FRIENDS OF THE ASSOCIATION FOR THE WELLBEING OF ISRAEL'S SOLDIERS

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF UK FRIENDS OF THE ASSOCIATION FOR THE WELLBEING OF ISRAEL'S SOLDIERS

Opinion

We have audited the financial statements of UK Friends of the Association for the Wellbeing of Israel's Soldiers (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 March 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated Income and Expenditure Account, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Page 7

UK FRIENDS OF THE ASSOCIATION FOR THE WELLBEING OF ISRAEL'S SOLDIERS

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF UK FRIENDS OF THE ASSOCIATION FOR THE WELLBEING OF ISRAEL'S SOLDIERS (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Page 8

UK FRIENDS OF THE ASSOCIATION FOR THE WELLBEING OF ISRAEL'S SOLDIERS

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF UK FRIENDS OF THE ASSOCIATION FOR THE WELLBEING OF ISRAEL'S SOLDIERS (CONTINUED)

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

The following laws and regulations were identified as being of significance to the entity:

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

Page 9

UK FRIENDS OF THE ASSOCIATION FOR THE WELLBEING OF ISRAEL'S SOLDIERS

(A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

Note
INCOME FROM:
Donations, legacies and grants
4
Investments
5
TOTAL INCOME
EXPENDITURE ON:
Raising funds
Charitable activities
8
TOTAL EXPENDITURE
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Total funds brought forward
13
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
2021
£
357,017
-
357,017
178,404
172,122
350,526
6,491
461,163
467,654		 Total
funds
2021
£
357,017
-
357,017
178,404
172,122
350,526
6,491
461,163
467,654		 Total
funds
2020
£
739,121
98
739,219
268,306
499,445
767,751
(28,532)
489,695
461,163

The notes on pages 16 to 28 form part of these financial statements.

Page 11

UK FRIENDS OF THE ASSOCIATION FOR THE WELLBEING OF ISRAEL'S SOLDIERS

(A Company Limited by Guarantee)

SUMMARY INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021

Note
GROSS INCOME IN THE REPORTING PERIOD
13
Less: Total expenditure
13
NET INCOME FOR THE FINANCIAL YEAR		 Total funds
2021
£
357,017
(350,526)
6,491		 Total funds
2020
£
739,219
(767,751)
(28,532)

The notes on pages 16 to 28 form part of these financial statements.

Page 12

(A coM￿nY Llmlt•d by Guarant••) AS AT 31 MARCH 2021 2020 T8noibl8 as88ts CURRENT A8SET8 Debtors Cjsh at bank and Wi IWKI 11 24.360 468.018 479,024 Cr•Jltorn: duo wlllth one 12 11WS) (17,861) NEf CURREKf A8SET3 461, 183 46Y,654 461, 163 CHARrrY FUNDS Gen8rn1 fvnds 461,183 TOTAL FUND8 461.163 th8 8m811 compan* rogwne. 2710112022 arKI slgned on thetr bghall ty. P. A 8u•8monn Trust Pap 13

(A Company Lirnlt•d by Guarant) AS AT 31 MARCH 2021 2020 RXED ASSETS Tongibl8 88s•tr Inve8tments 10 CURREKf ASSEf8 D8btLY8 Cash at bank KI kn hoNI 11 34,218 441,720 47&938 C1￿1t018. amounts 18111ry dug IINn o 12 (11107) (14,777J NET CURREKf A88ET3 461,161 461, 183 CHARrrY FUM08 Rbthcted funds 461,163 TOTAL FUNDS 461,163 Tho financkql statements have bgen pryred kn acc￿d￿ Thh th• applkable to antltlos •ubJoct lo th8 small c¢mpani88 reg1￿. The ffnanc181 statements were and for16￿ ty thè TnMt•e6 on . 2710112022 and 81gn8d on th￿r bthg11 ty. P. ￿ SuMm•nn 14

UK FRIENDS OF THE ASSOCIATION FOR THE WELLBEING OF ISRAEL'S SOLDIERS

(A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

Note
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash used in operating activities
15
CHANGE IN CASH AND CASH EQUIVALENTS IN THE YEAR
Cash and cash equivalents at the beginning of the year
CASH AND CASH EQUIVALENTS CARRIED FORWARD
16		 2021
£
13,354
13,354
454,664
468,018		 2020
£
(38,636)
(38,636)
493,300
454,664

The notes on pages 16 to 28 form part of these financial statements

Page 15

UK FRIENDS OF THE ASSOCIATION FOR THE WELLBEING OF ISRAEL'S SOLDIERS

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

UK Friends of the Association for the Wellbeing of Israel's Soldiers meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Company and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Financial Activities in these financial statements.

The SOFA of the company shows a net surplus of £6,491 ( 2020: £28,532 deficit ).

1.2 Company status

The company is a company limited by guarantee. the members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £10 per member of the company.

1.3 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Page 16

UK FRIENDS OF THE ASSOCIATION FOR THE WELLBEING OF ISRAEL'S SOLDIERS

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES (CONTINUED)

1.4 Income

All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

For legacies, entitlement is taken as the earlier of the date on which either: the company is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the company has been notified of the executor's intention to make a distribution. Where legacies have been notified to the company, or the company is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent assets and disclosed if material.

Grants are included in the Consolidated Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Support costs are those costs incurred directly in support of expenditure on the objects of the company and include project management carried out at Headquarters. Governance costs are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements.

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Charitable activities and Governance costs are costs incurred on the company's educational operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.

Page 17

UK FRIENDS OF THE ASSOCIATION FOR THE WELLBEING OF ISRAEL'S SOLDIERS

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES (CONTINUED)

1.6 Tangible fixed assets and depreciation

All assets costing more than £100 are capitalised.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

1.7 Investments

Investments in subsidiaries are valued at cost less provision for impairment.

1.8 Deferred taxation

Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation.

A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable surpluses from which the future reversal of the underlying timing differences can be deducted.

Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse.

1.9 Operating leases

Rentals paid under operating leases are charged to the Consolidated Statement of Financial Activities on a straight-line basis over the lease term.

1.10 Government grants

Government grants are credited to the Consolidated Statement of Financial Activities as the related expenditure is incurred.

1.11 Foreign currencies

The company's functional and presentational currency is British Pound Sterling (GBP).

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the Balance Sheet date.

Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.

Exchange gains and losses are recognised in the Consolidated Statement of Financial Activities.

Page 18

UK FRIENDS OF THE ASSOCIATION FOR THE WELLBEING OF ISRAEL'S SOLDIERS (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES (CONTINUED)

1.12 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the Bank.

1.13 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.14 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.15 Creditors and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

1.16 Financial instruments

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

1.17 Taxation

The Company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Page 19

UK FRIENDS OF THE ASSOCIATION FOR THE WELLBEING OF ISRAEL'S SOLDIERS

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. STAFF COSTS

Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes		 Group
2021
£
48,794
464
1,089
50,347		 Group
2020
£
39,909
1,400
1,389
42,698		 Company
2021
£
48,794
464
1,089
50,347		 Company
2020
£
39,909
1,400
1,389
42,698

The average number of persons employed by the Company during the year was as follows:

Trustees
Administration		 Group
2021
4
2
6		 Group
2020
4
2
6		 Company
2021
4
2
6		 Company
2020
4
2
6

No employee received remuneration amounting to more than £60,000 in either year.

During the year, the honorary president, E. Hellerstein, received fees of £49,734 ( 2020: £48,244 ).

During the year, no Trustees received any remuneration, benefits in kind or reimbursement of expenses ( 2020: £Nil ).

3. AUDITORS' REMUNERATION

2021 2020
£ £
Fees payable to the Company's auditor for the audit of the company and
group's annual accounts 6,516 6,120
Fees payable to the company's auditor and its associates in respect of:
The auditing of accounts of associates of the company 2,755 3,084
Accountancy and payroll services 7,848 6,336

Page 20

UK FRIENDS OF THE ASSOCIATION FOR THE WELLBEING OF ISRAEL'S SOLDIERS

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

4. INCOME FROM DONATIONS, LEGACIES AND GRANTS

Donations
Legacies
Government grants
In 2020, all amounts were unrestricted.		 Unrestricted
funds
2021
£
348,940
-
8,077
357,017		 Total
funds
2021
£
348,940
-
8,077
357,017		 Total
funds
2020
£
719,121
20,000
-
739,121

5. INVESTMENT INCOME

Unrestricted Total Total
funds funds funds
2021 2021 2020
£ £ £
Interest receivable - - 98

6. ANALYSIS OF EXPENDITURE ON FUNDRAISING ACTIVITIES

Catering
Production costs
Printing
Hotels and travel
Consultancy
Support costs (note 7)
Governance costs (note 7)		 Annual
fundraising
dinner
2021
£
-
40,387
5,997
-
33,156
43,287
55,577
178,404		 Total
funds
2021
£
-
40,387
5,997
-
33,156
43,287
55,577
178,404		 Total
funds
2020
£
54,392
52,829
18,232
7,800
32,163
52,840
50,050
268,306

In 2020, all amounts were unrestricted.

Page 21

UK FRIENDS OF THE ASSOCIATION FOR THE WELLBEING OF ISRAEL'S SOLDIERS

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

7. ANALYSIS OF SUPPORT AND GOVERNANCE COSTS

Auditors' remuneration
Accountancy
Legal and professional
General office expenses
Hotels and travel
Bank charges
Credit card charges
Insurance
Foreign exchange
Salaries, wages and associated costs
Auditors' remuneration
Accountancy
Legal and professional
General office expenses
Hotels and travel
Bank charges
Credit card charges
Insurance
Foreign exchange
Salaries, wages and associated costs		 Support
costs
2021
£
-
-
-
12,407
592
2,190
2,396
443
85
25,174
43,287
Support
costs
2020
£
-
-
6,000
14,084
12,715
1,284
1,393
427
(6,387)
23,324
52,840		 Governance
costs
2021
£
9,271
7,848
877
12,407
-
-
-
-
-
25,174
55,577
Governance
costs
2020
£
9,204
6,336
1,052
14,084
-
-
-
-
-
19,374
50,050		 Total
funds
2021
£
9,271
7,848
877
24,814
592
2,190
2,396
443
85
50,348
98,864
Total
funds
2020
£
9,204
6,336
7,052
28,168
12,715
1,284
1,393
427
(6,387)
42,698
102,890

In 2020, all amounts were unrestricted.

Page 22

UK FRIENDS OF THE ASSOCIATION FOR THE WELLBEING OF ISRAEL'S SOLDIERS

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

8. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES

Charitable activities
In 2020, all amounts were unrestricted.		 Unrestricted
funds
2021
£
172,122		 Total
funds
2021
£
172,122		 Total
funds
2020
£
499,445

. SUMMARY BY EXPENDITURE TYPE

Donations to The Association for the Wellbeing of Israel's Soldiers in Israel
Donations in respect of IMPACT scholarships
Consultancy fees		 2021
£
155,544
-
16,578
172,122		 2020
£
402,632
80,732
16,081
499,445

Page 23

UK FRIENDS OF THE ASSOCIATION FOR THE WELLBEING OF ISRAEL'S SOLDIERS

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

9.
TANGIBLE FIXED ASSETS
Group
Cost
At 1 April 2020 and 31 March 2021
Depreciation
At 1 April 2020 and 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020
Company
Cost
At 1 April 2020 and 31 March 2021
Depreciation
At 1 April 2020 and 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Fixtures and
fittings
£
6,980
6,980
-
-
Fixtures and
fittings
£
6,980
6,980
-
-

Page 24

UK FRIENDS OF THE ASSOCIATION FOR THE WELLBEING OF ISRAEL'S SOLDIERS

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

10. FIXED ASSET INVESTMENTS

Valuation

.

The unquoted investment represents a 100% holding in UK AWIS Trading Limited, a company registered in the United Kingdom, whose principal activity is to support fundraising for its parent company through its trading activities. The aggregate of the capital and reserves of the company as at 31 March 2021 was £2 ( 2020: £2 ). The company reported income in the year ended 31 March 2021 of £27,489 (2020: £130,752) and made a profit of £Nil ( 2020: £Nil ). The company reported expenditure in the year ended 31 March 2021 of £27,489 ( 2020: £127,165 ) which directly contributed to the charitable parent company's annual fundraising dinner.

Shares in
group
undertakings
Company £
Market value
At 1 April 2020 2
AT 31 MARCH 2021 2

.

PRINCIPAL SUBSIDIARIES

The following was a subsidiary undertaking of the Company:

Name Company Holding Included in
number consolidation
UK AWIS Trading Limited 04201043 100% Yes
The financial results of the subsidiary for the year were:
Name Income Expenditure Net assets
£ £ £
UK AWIS Trading Limited 27,489 (27,489) (2)

Page 25

UK FRIENDS OF THE ASSOCIATION FOR THE WELLBEING OF ISRAEL'S SOLDIERS

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

11. DEBTORS

Due within one year
Other debtors
Tax recoverable		 Group
2021
£
-
16,461
16,461		 Group
2020
£
413
23,947
24,360		 Company
2021
£
-
16,461
16,461		 Company
2020
£
10,271
23,947
34,218

12. CREDITORS: Amounts falling due within one year

Other creditors
Accruals and deferred income		 Group
2021
£
178
16,647
16,825		 Group
2020
£
2,298
15,563
17,861		 Company
2021
£
9,343
7,464
16,807		 Company
2020
£
2,298
12,479
14,777

13. SUMMARY OF FUNDS

Balance at 1 Balance at 31
April 2020 Income Expenditure March 2021
£ £ £ £
General funds 461,163 357,017 (350,526) 467,654

The funds retained at the end of the financial year reflects amounts received and earmarked for projects which had been identified but not yet commenced.

Page 26

UK FRIENDS OF THE ASSOCIATION FOR THE WELLBEING OF ISRAEL'S SOLDIERS

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

14. ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR

Current assets
Creditors due within one year
Total
ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2021
£
484,479
(16,825)
467,654
Unrestricted
funds
2020
£
479,024
(17,861)
461,163		 Total
funds
2021
£
484,479
(16,825)
467,654
Total
funds
2020
£
479,024
(17,861)
461,163

RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING 15. ACTIVITIES

Net income/expenditure for the year (as per Statement of Financial
Activities)
ADJUSTMENTS FOR:
Decrease/(increase) in debtors
Decrease in creditors
NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES		 Group
2021
£
6,491
7,899
(1,036)
13,354		 Group
2020
£
(28,532)
(9,450)
(654)
(38,636)

Page 27

UK FRIENDS OF THE ASSOCIATION FOR THE WELLBEING OF ISRAEL'S SOLDIERS

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

16. ANALYSIS OF CASH AND CASH EQUIVALENTS

Cash in hand
TOTAL CASH AND CASH EQUIVALENTS		 Group
2021
£
468,018
468,018		 Group
2020
£
454,664
454,664

17. ANALYSIS OF CHANGES IN NET DEBT

Cash at bank and in hand
Debt due within 1 year		 At 1 April
2020
£
454,664
(223)
454,441		 Cash flows
£
13,354
45
13,399		 At 31 March
2021
£
468,018
(178)
467,840

18. RELATED PARTY TRANSACTIONS

The charity has a close relationship with WIBI Fund The Association for the Wellbeing of Israeli Soldiers in Israel, a charity registered and operating in Israel.

During the year to 31 March 2021 the company sent to LIBI Fund The Association for the Wellbeing of Israeli Soldiers donations amounting to £155,544 ( 2020: £402,632 ).

There were no terms and conditions attached to these amounts other than they must be used for the charitable purpose for which they were donated.

During the year to 31 March 2021 aggregate donations were received from trustees of £Nil ( 2020: £71,500 ). There were no conditions attached to these amounts.

19. ULTIMATE CONTROLLING PARTY

As at 31 March 2021 and 31 March 2020, there was no single ultimate controlling party of the charity.

Page 28