**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: - Embrace project - £23,000 - to provide funding for the Israel Defense Force to help with the well-being of soldiers as specified by their Commanders including lone soldiers, injured soldiers, including the observance of religious and national holidays. - Reception of new applicants - £33,557 - with the help of local volunteers UK Friends of AWIS helped to sponsor the organisation of the reception of 25,000 young recruits in Yarkon Park. This encouraged the new recruits to understand that their wellbeing will be supported by UK Friends of AWIS throughout their military service. - Scholarships - £18,792 - which provides funding for underprivileged former Israeli soldiers to obtain higher education by covering the full cost of tuition at an accredited institution as well as related expenses such as textbooks. - AWIS-Israel for various welfare projects - £80,195 ## **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: - select suitable accounting policies and then apply them consistently; - observe the methods and principles of the Charities SORP; - make judgments and accounting estimates that are reasonable and prudent; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable Group will continue in operation. 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 TRUSTEES. REPORT (CONTINUED FOR THE YEAR ENDED 31 MARCH 2021 DISCLOSURE OF INFORMATION TO ￿li￿rORs Eath ofth8 [￿on$ arn TnMts•s at ts tkn8 Tntstee8' Repr*t is aN>ro¥ed h88 cx)nllm)od that auditors unaware. that Tnth has taken 811 the 8t0￿ I￿1 fAWJ￿ k* b8en takon a$ a Tru9to• in ordar *) bo awarn of ary relevant audlt In[￿m0￿ ￿ k+ •8tsWy trAt thg auth5 are wwarg of that AUDITORS The audhc*8. Wlkler Co• timited. indKgtsd I￿1r to In offi(x. Thb dwgnal&l Tru818e8 2 K.... arnj 8vJned cm thor bghair ty.. TNslee P&¥6 **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: - give a true and fair view of the state of the Group's and of the parent charitable company's affairs as at 31 March 2021 and of the Group's incoming resources and application of resources, including its income and expenditure for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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: - the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the Trustees' Report has been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** In the light of our knowledge and understanding of the 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: - the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or - the parent charitable company financial statements are not in agreement with the accounting records and returns; or - certain disclosures of Trustees' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or - the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' Report and from the requirement to prepare a Strategic Report. 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: - Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law and Tax legislation. - Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements. 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￿ Th*h 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: - Fixtures and fittings straight-line ## **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