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2021-12-31-accounts

09 ENSIVE CARE UNIT Iirj 17 oiiké MAGEN DAVID ADOM UK SAVING MORE LIVES

2

The directors present their report and financial statements for the year ended 31 December 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the company’s Memorandum & Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016).

OBJECTIVES AND ACTIVITIES OBJECTIVES

The company’s charitable objects are defined in the Articles of Association as ‘...primarily to assist Magen David Adom in Israel, or, where in the opinion of the Board of Trustees it is appropriate, in any other equivalent or similar organisation in Israel or anywhere in the world in the work of providing medical care and treatment for persons irrespective of the nationality, race, religion, ethnic origin, age disability, sexual orientation or political affiliation’.

In practice these objects are met by:

The funding of these activities is raised by appealing for, soliciting, accepting and receiving endowments, legacies, bequests, gifts or donations for any purpose consistent with the objectives of the company.

The company provides and maintains such administrative organisation as is required for the advancement of the objectives.

ACTIVITIES

The company is administered by the Chief Executive, a finance manager, an operations manager supported by a full-time assistant; one fundraising manager, supported by two full time staff and three volunteers.

The directors have paid due regard to guidance issued by the Charity Commission in deciding what activities the company should undertake.

DIRECTORS’ REPORT

3

ACHIEVEMENTS AND PERFORMANCE

The total funds raised for Magen David Adom in Israel, international support and UK first aid training programme during the year ended 31 December 2021 totalled £4,083,853 (2020: £5,751,840).

Legacy income in 2021 was £1,608,508 (2020: £801,575).

Donations and gifts in 2021 were £1,848,402 (2020: £3,809,576) and total income excluding legacies in 2021 was £2,475,345 (2020: £4,950,265). This reflects the more difficult problems with fund raising following Covid-19 and the lack of in person events for most of 2021.

Magen David Adom has continued to increase capital funding towards the National Blood & Logistics Centre in Ramla. This £90m state of the art facility will safeguard the blood supplies of Israel as well as MDA’s store of key medical supplies and vehicles 15metres underground. Work has been completed and the keys were handed over in 2022.

None of this would be possible without a dedicated board and team of professional staff who work tirelessly to produce these results. Magen David Adom UK’s reach in the UK and further afield continues to grow with loyal committees from Gibraltar to Manchester.

ANNUAL REPORT AND FINANCIAL STATEMENTS

4

DIRECTORS’

R. Jacobs (Chair) P. Abram D. Burger D. Curtis B. Dingle R. Ellison M. Franks B. Kalms D. Levy R. Ordever N. Posnansky N Springer Charity number 1113409 Company number 05718138

PRINCIPAL ADDRESS

Winston House 2 Dollis Park London N3 1HF

REGISTERED OFFICE

Winston House 2 Dollis Park London N3 1HF

AUDITOR

BKL Audit LLP 35 Ballards Lane London N3 1XW

BANKERS

CAF Bank Limited 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ

Israel Discount Bank Ltd Mapu Street 16 Tel Aviv Yafo Israel National Westminster Bank PLC 250 Regent Street London WC1A 4RY

SOLICITORS

Bates Wells & Braithwaite Solicitors 10 Queen Street Place London EC4R 1BE

Womble Bond Dickinson LLP 4 More London Riverside London SE1 2AU

ANNUAL REPORT AND FINANCIAL STATEMENTS

5

Chief Executive’s report 6
Directors’ report 7
Statement of directors’ responsibilities 11
Independent auditor’s report 12
Statement of fnancial activities 15
Balance sheet 16
Statement of cash fows 17
Notes to the fnancial statements 18

CONTENTS

6

The past twelve months have seen the global Covid pandemic of 2020 give way to a 2021 of two halves. The first half of the year was a continued time of lockdown and the inability to meet as a large gathering which still impacted significantly on our lives. June saw the turning point and we were delighted to welcome HE Tzipi Hotovely, Israeli Ambassador to the Court of St James’s as the keynote speaker at our first in person event since the start of the pandemic. We hold the claim to be Ambassador Hotovely’s first in person communal event since taking office in September 2020.

The previous upheaval has seen a shift and what was fascinating was how many of our supporters wanted to meet, socialise and hear from MDA speakers so quickly after lockdown came to an end.

The year was met with so many positives yet with Israel’s borders remaining closed, so many challenges too. In fact our postponed Israel/Jordan trek had to be revamped as a Jordan only trek and it was both wonderful and bizarre to welcome back our international trekkers to see such beauty in Jordan and friendship with the Red Crescent, all whilst being in touching distance of the Israeli border.

May saw two shocking developments – firstly the Mount Meron disaster where many were trampled to death in a very avoidable situation and our youth volunteers had to witness these shocking scenes first hand. No sooner had we started to reflect on this, our attention was this time turned to rockets coming across the border from Gaza and the very upsetting scenes of neighbour turn on neighbour within Israel. Our community very generously supported an emergency campaign which saw three Mobile Intensive Care Units already in Israel funded and put on the road. We wanted to ensure that one was sent to the Bedouin town of Rahat and the others to areas close to the border which needed them. As soon as I could, I insisted on going to Israel and ensured I spent time with the team in Rahat and the team in Ashkelon.

On my return, we also worked with our Gifts in Kind Partner, International Health Partners to ensure that we offered a level of support to their medical programme of sending essential medicines into Gaza whilst also working with the British Red Cross to ensure that their emergency appeal saw the funds split between the Palestinian Red Crescent, the local ICRC office and Magen David Adom.

As the year progressed, we continued to develop our changing narrative and address the very real question of “why should I support Israel’s medical emergency service?” – our challenge here is that 1) Israel is perceived as being a wealthy nation and 2) with Covid, people felt very much that charity begins at home. This gave us the opportunity to further expand our message which is to take MDA, Israel’s apolitical national Red Cross Society and position it as a beacon of light for everything that is great about Israel.

We were further able to demonstrate this in September on the first anniversary of the signing of the Abraham Accords by hosting a lunch with diplomats and other VIP’s whilst welcoming the Embassies of Bahrain and Israel to be the guests of honour. As we look further into the future, it is obvious that to remain relevant and ahead of the game in the Anglo-Israel non-profit sector, we need to continue to build on this narrative.

This time last year, when we reflected on the changing landscape of the Middle East, I wrote: “The Accords prompted us at Magen David Adom to look inwards too. To establish what our role is in this changing world, and how MDA could and should be a force for positive change not just within Israel’s borders but beyond them too.” As we move into 2022 and beyond, I know that we are pushing this agenda at a lightning pace. We are attracting new donors as a result, whilst also continuing to work with our existing major donors.

That said, Patronage income was lower this year due to donors not renewing their commitments whilst many cut back on their philanthropy whilst property income and their investments were significantly affected. Almost all said this was a temporary pause and once the markets returned to a degree of normality, so would their giving to MDA.

We know that 2022 will bring even more change and challenges and just as we started the second half of the year with an in person event, we ended it too with a Patrons’ Dinner with Shai Weiss, CEO of Virgin Atlantic.

The organisation remains lean, dynamic and ready to fundraise in a world of change.

Thank you for your continued support and hoping for a better and brighter 2021.

Daniel Burger Chief Executive

CEO’S REPORT

7

The directors’ present their annual report and financial statements for the year ended 31 December 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity’s governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES OBJECTIVES

The company’s charitable objects are defined in the Articles of Association as ‘...primarily to assist Magen David Adom in Israel, or, where in the opinion of the Board of Trustees it is appropriate, in any other equivalent or similar organisation in Israel or anywhere in the world in the work of providing medical care and treatment for persons irrespective of the nationality, race, religion, ethnic origin, age disability, sexual orientation or political affilation’.

In practice these objects are met by:

The funding of these activities is raised by appealing for, soliciting, accepting and receiving endowments, legacies, bequests, gifts or donations for any purpose consistent with the objectives of the company.

The company provides and maintains such administrative organisation as is required for the advancement of the objectives.

ACTIVITIES

The company is administered by the Chief Executive, a finance manager, an operations manager supported by a full time assistant; one fundraising managers, supported by two full time staff and three volunteers.

The directors’ have paid due regard to guidance issued by the Charity Commission in deciding what activities charitable company should undertake.

ACHIEVEMENTS AND PERFORMANCE

The total funds raised for Magen David Adom in Israel, international support and UK first aid training programme during the year ended 31 December 2021 totalled £4,083,853 (2020: £5,751,840).

Legacy income in 2021 was £1,608,508 (2020: £801,575).

Donations and gifts in 2021 were £1,848,402 (2020: £3,809,576) and total income excluding legacies in 2021 was £2,475,345 (2020: £4,950,265). This reflects the more difficult problems with fund raising following Covid-19 and the lack of in person events for most of 2021.

Magen David Adom has continued to increase capital funding towards the National Blood & Logistics Centre in Ramla. This £90m state of the art facility will safeguard the blood supplies of Israel as well as MDA’s store of key medical supplies and vehicles 15metres underground. Work has been completed and the keys were handed over in 2022.

None of this would be possible without a dedicated board and team of professional staff who work tirelessly to produce these results. Magen David Adom UK’s reach in the UK and further afield continues to grow with loyal committees from Gibraltar to Manchester.

DIRECTORS’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

8

FINANCIAL REVIEW

The accounts for the year are set out on pages 14 to 28. The company continues its valuable contribution to Magen David Adom in Israel and other similar humanitarian causes where funds are donated for that purpose.

It is the policy of the company that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three to six months’ expenditure. The directors consider that reserves at this level will ensure that in the event of a significant drop in funding, they will be able to continue the company’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

The company has adopted a policy of placing its funds on short term deposit with its bankers as it wishes to maintain flexibility to meet urgent requests for financial assistance. Quoted securities when given to the company are sold as soon as practicable except where this conflicts with the donor’s wishes.

Cash at the bank and in hand on 31 December 2021 was £1,911,136 (2020: £3,676,981); this reflects the contribution of significant funds collected in 2020 paid to Israel in 2021.

There has been an increasing trend for donors and legacies, to some extent, to fund restricted items including vehicles. As with capital projects, the items are paid for once they are in Israel and payment requested against invoice. In the case of ambulances, on some occasions the lead time can be a few months which further inflates Magen David Adom UK’s bank position.

PLANS FOR FUTURE

The company intends to continue and enhance its charitable efforts in accordance with its objectives as expressed in the articles of association.

COVID-19

The impact of the Covid-19 pandemic in 2020 has had serious implications for the work of Magen David Adom in Israel as they are the ‘front line’ in providing patients with emergency treatment and transport to hospital. Their reliance on continued support from friends’ societies has been paramount. Fortunately, supporters of Magen David Adom UK have remained very supportive. In 2021, we saw a change in fundraising programs with more online events, but also a return to in-person events.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The company is a company limited by guarantee, Charity Registration number 1113409.

The directors’, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

R. Jacobs (Chair)

P. Abram

D. Burger

D. Curtis

B. Dingle

R. Ellison

M. Franks

B. Kalms

I. Langdon (Resigned 28 January 2021)

D. Levy

R. Ordever

None of the directors’ has any beneficial interest in the company. All directors’ are members of the company and guarantee to contribute £1 in the event of a winding up.

DIRECTORS’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

9

New directors are provided with a Charity Commission publication on the trustees’ duties and are given guidance on the Charity’s trust deed, the board and decision-making processes of the Charity and recent financial performance.

The directors’ have assessed the major risks to which charitable company is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

COMMITTEES OF THE BOARD

There are three Committees of the Board – the Executive Committee, the Governance Committee and the Israel Property Committee. All three Committees report directly to the Chair of the Board and have delegated authorities and responsibilities.

The Executive Committee is responsible for providing advice and guidance on the activities, organisation, management and day-to-day operational matters and challenges facing Magen David Adom UK.

The Governance Committee is responsible for providing advice and guidance on issues involving the governance, reputation, community standing and ethics applicable to Magen David Adom UK and its activities.

The Israel Property Committee is responsible for providing advice and guidance on the application of resources of Magen David Adom UK towards the construction, improvement and renovation of Magen David Adom sites in Israel. Such advice may relate to the manner of Magen David Adom UK’s supervision of such investments within Israel.

MEMBERS OF THE COMMITTEES

EXECUTIVE COMMITTEE:

D. Burger

D. Curtis

M. Franks

R. Jacobs

B. Kalms

R. Ordever

GOVERNANCE COMMITTEE:

D. Burger

D. Curtis

R. Ellison

R. Jacobs

ISRAEL PROPERTY COMMITTEE:

D. Burger

R. Jacobs

B. Kalms

GOVERNANCE, INTERNAL CONTROL AND RISK MANAGEMENT

The board of directors needs to provide reasonable assurance that:

DIRECTORS’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

10

The systems of internal control are designed to provide reasonable, but not absolute, assurance against material misstatement or loss. They include:

The board of directors has a formal risk management process to assess business risks and implement risk management strategies. This involves identifying the types of risks the company faces, prioritising them in terms of potential impact and likelihood of occurrence, and identifying means of mitigating the risks. As part of this process the directors have reviewed the adequacy of the company’s current internal controls. The directors are pleased to report that the company’s internal financial controls, in particular, conform with the guidelines issued by the Charity Commission.

In addition, the directors have considered the guidance for directors of public listed companies contained within the Turnbull Report. It believes that although this is not mandatory for the company it should, as a public interest body, adopt these guidelines as best practice. Accordingly it has set policies on internal controls which cover the following:

AUDITOR

During the year, FSPG acted as the auditor to the company until 31 March 2022. On 31 March 2022, FSPG transferred its audit business to a new LLP, BKL Audit LLP. The directors consented to treating the appointment of FSPG as extending to BKL Audit LLP with effect from 1 April 2022. Under section 487 (2) of the Companies Act 2006, BKL Audit LLP will be deemed to have been reappointed as auditors 28 days after these financial statement were sent to the members, or 28 day after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

DISCLOSURE OF INFORMATION TO AUDITOR

Each of the directors’ has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The directors’ report was approved by the Board of Directors’.

M. Franks

Director Dated: 27[th] October 2022

DIRECTORS’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

11

The directors’, who are also act as trustees (with exception of Daniel Burger who serves only as a director of the limited company and not as a trustee) for the charitable activities of of Magen David Adom UK, are responsible for preparing the Directors’ Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the directors’ to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the directors’ are required to:

The directors’ are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT OF DIRECTORS’ RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2021

12

OPINION

We have audited the financial statements of Magen David Adom UK (the ‘charitable company’) for the year ended 31 December 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including 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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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 directors’ 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 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 directors’ with respect to going concern are described in the relevant sections of this report.

OTHER INFORMATION

The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The directors’ 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 is 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.

INDEPENDENT AUDITOR’S REPORT TO THE DIRECTORS’ OF MAGEN DAVID ADOM UK

13

OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

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

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

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

RESPONSIBILITIES OF DIRECTORS’

As explained more fully in the statement of directors’ responsibilities, the directors’, who are also the directors of the charitable company for the purpose of company law, who are also the trustees for the purposes of charity 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 directors’ 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

directors’ are responsible for assessing the 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 directors’ either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

AUDITOR’S 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 auditor’s 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

As part of our planning process;

INDEPENDENT AUDITOR’S REPORT TO THE DIRECTORS’ OF MAGEN DAVID ADOM UK

14

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with those charged with governance of the entity.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc. org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

USE OF OUR REPORT

This report is made solely to the company’s members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

David Tropp

(Senior Statutory Auditor) for and behalf of BKL Audit LLP

Chartered Accountants

Statutory Auditor

35 Ballards Lane London N3 1XW

Dated: 27[th] October 2022

INDEPENDENT AUDITOR’S REPORT TO THE DIRECTORS’ OF MAGEN DAVID ADOM UK

15

INCOME FROM:
Donations
and legacies
Investment income
Total income
EXPENDITURE
Raising funds
Costs of raising funds
Charitable activities
Total expenditure
NET OUTGOING
RESOURCES BEFORE
TRANSFERS
Gross transfers
between funds
Net expenditure
for the year/Net
movement in funds
Fund balances at 1
January 2021
Fund balances at 31
December 2021		 Unrestricted
funds
2021
Restricted
funds
2021
Total
2021
Unrestricted
funds
2020
Restricted
funds
2020
Total
2020
Notes
£
£
£
£
£
£
4
1,639,106
2,444,747
4,083,853
1,871,187
3,880,653
5,751,840
3
16
–
–
8,278
–
8,278
1,639,122
2,444,747
4,083,853
1,879,465
3,880,653
5,760,118
6
535,509
–
535,509
1,274,623
–
1,274,623
5
3,044,688
3,587,560
6,632,248
1,817,563
4,001,322
5,818,885
3,580,197
3,587,560
7,167,757
3,092,186
4,001,322
7,093,508
(1,941,075)
(1,142,813)
(3,083,888)
(1,212,721)
(120,669)
(1,333,390)
281,488
(281,488)
–
91,580
(91,580)
–
(1,659,587)
(1,424,301)
(3,083,888)
(1,121,141)
(212,249)
(1,333,390)
3,880,454
1,650,964
5,531,418
5,001,595
1,863,213
6,864,808
2,220,867
226,663
2,447,530
3,880,454
1,650,964
5,531,418

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021

16

Fixed assets
Tangible assets
Current assets
Debtors falling due afer one year
Debtors falling due within one year
Cash at bank and in hand
Creditors: amounts falling due within one year
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
Unrestricted funds
Designated funds
General unrestricted funds		 Notes
11
12
12		 2021
£
385,436
1,429,041
1,911,136		 £
24,149		 2020
£
£
36,977
1,080,907
2,414,950
3,676,981
13 3,725,613
(1,302,232)		 7,172,838
(1,678,397)
15 –
2,220,867		 2,423,381
2,447,530
226,663
2,220,867		 5,494,441
5,531,418
1,650,964
282,011
3,598,443
3,880,454
2,447,530 5,531,418

The financial statements were approved by the Directors' on 27[th] October 2022

M. Franks

Director

BALANCE SHEET AS AT 31 DECEMBER 2021

17

Notes
Cash fows from operating activities
19
Cash (absorbed by)/generated from operations
Investing activities
Purchase of tangible fxed assets
Investment income received
Net cash (used in)/
generated from investing activities
Net cash used in fnancing activities
Net (decrease)/
increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2021
£
(1,948)
16		 £
(1,763,913)
(1,932)
–		 2020
£
–
8,278		 £
1,318,729
8,278
–
(1,765,845)
3,676,981		 1,327,007
2,349,974
1,911,136 3,676,981

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021

18

1 ACCOUNTING POLICIES

Charity information

Magen David Adom UK is a private company limited by guarantee incorporated in England and Wales and a registered charity. The registered office is Winston House, 2 Dollis Park, London, N3 1HF.

The company is limited by guarantee of £1 per member.

1.1 ACCOUNTING CONVENTION

The financial statements have been prepared in accordance with the charitable company's memorandum and articles of Associaiton, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charitable company is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 GOING CONCERN

At the time of approving the financial statements, the directors' have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors' continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 CHARITABLE FUNDS

Unrestricted funds are available for use at the discretion of the directors' in furtherance of their charitable objectives.

Restricted funds are monies raised for a specific purpose, or donations subject to conditions imposed by donors. Restricted fund balances cannot be transferred to unrestricted.

1.4 INCOME

Income is recognised when the charitable company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charitable company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charitable company has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Gifts in kind relating to medical supplies are based on the gift donation certificate and distribution are recognised only when distributed.

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

19

Accounting policies (Continued)

1.5 EXPENDITURE

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party.

Expenditure can be classified under the following activity headings:-

Expenses include VAT where applicable as the company cannot reclaim it. Fundraising costs consist of the direct costs of fundraising activities.

Direct charitable expenditure comprises direct expenses incurred on the defined charitable purposes of the charity and includes direct staff costs attributable to charity's activities.

1.6 TANGIBLE FIXED ASSETS

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements over lease term

Fixtures, fittings & equipment 25% per annum on a straight line basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 IMPAIRMENT OF FIXED ASSETS

At each reporting end date, charitable company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 CASH AND CASH EQUIVALENTS

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 FINANCIAL INSTRUMENTS

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in charitable company's balance sheet when charitable company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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

20

Accounting policies (Continued)

BASIC FINANCIAL ASSETS

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

BASIC FINANCIAL LIABILITIES

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

DERECOGNITION OF FINANCIAL LIABILITIES

Financial liabilities are derecognised when charitable company’s contractual obligations expire or are discharged or cancelled.

1.10 EMPLOYEE BENEFITS

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

The company operates a defined contributions pension scheme. Contributions are charged in the accounts as they become payable in accordance with the rules of the scheme.

1.11 FOREIGN EXCHANGE

Transactions denominated in foreign currencies are recorded at the rate ruling at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. All differences are included in resources expended.

2 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

In the application of charitable company’s accounting policies, the directors' are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

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

21

3 INVESTMENTS

Unrestricted funds Unrestricted funds
2021 2020
£ £
Interest receivable 16 8,278

4 DONATIONS AND LEGACIES

INCOME FROM:
Donations and gifs
Legacies receivable
Grant receivable
Gifs in kind
Gif Aid claimed
For the year ended 31
December 2020
Grants receivable
for core activities
Coronavirus job
retention scheme		 Unrestricted funds
Restricted funds
Total
2021
£
£
£
248,033
1,600,369
1,848,402
1,232,008
376,500
1,608,508
-
-
-
-
467,878
467,878
159,065
-
159,065		 Total
2020
£
3,809,576
801,575
3,026
940,081
197,582
1,639,106
2,444,747
4,083,853		 5,751,840
1,871,187
3,880,653
-
-
-		 5,751,840
3,026
-
-
-		 3,026

Gifts in kind

Gifts in kind relating to medical supplies have been included at £467,878 (2020: £940,081) as donations for the year and distributed in the year. The valuation is based on the gift donation certificate.

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

22

5 CHARITABLE ACTIVITIES

Medical Equipment
Casualty stations
refurbishment costs
Ambulances and other
vehicles associated costs
Command and Control
Donated goods and
associated costs
UK First Aid training and
defbrillator supplies
Holocaust campaign
IMDAC
Computerisation
Miscellaneous project
costs
Israel training costs
Premises costs
Legal and
professional fees
Ofce expenses
Other administrative costs
Staf costs
Depreciation
Share of governance costs
(see note 8)		 Assistance to
MDA Israel
Gif in Kind
Other
charitable
activities
Admin and
premises
cost
Total
2021
Total
2020
£
£
£
£
£
£
443,142
–
–
–
443,142
532,773
3,027,929
–
–
–
3,027,929
2,433,537
1,791,606
–
–
–
1,791,606
1,009,205
37,186
–
–
–
37,186
278,439
–
495,378
–
–
495,378
946,670
–
–
1,690
–
1,690
6,166
–
–
–
–
–
34,853
–
–
–
–
–
74
189,206
–
–
–
189,206
–
–
–
125,077
–
125,077
69,556
156,383
–
–
–
156,383
153,242
–
–
–
42,302
42,302
40,889
–
–
–
7,021
7,021
5,488
–
–
–
44,967
44,967
42,065
–
–
–
51,573
51,573
18,339
21,448
–
–
105,929
127,377
159,634
–
–
–
14,776
14,776
13,850
5,666,900
495,378
126,767
266,568
6,555,613
5,744,780
–
–
–
76,635
76,635
74,105
5,666,900
495,378
126,767
343,203
6,632,248
5,818,885

SUMMARY OF CHARITABLE ACTIVITIES

Assistance to Israel
Gifs in Kind
Miscellaneous charitable activites
Support Costs		 £5,645,452
£495,378
£126,767
£364,651
£6,632,248

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

23

Charitable activities (Continued)

Assistance to
MDA Israel
Gif in Kind
Other
charitable
activities
Admin and
premises
cost
Total
2021
£
£
£
£
£
Analysis by fund
Unrestricted funds
2,547,218
27,500
126,767
343,203
3,044,688
Restricted funds
3,119,682
467,878
–
–
3,587,560
5,666,900
495,378
126,767
343,203
6,632,248
For the year ended 31 December 2020
Unrestricted funds
1,402,704
6,589
75,197
333,073
Restricted funds
3,025,089
940,081
35,452
700
4,427,793
946,670
110,649
333,773
2021
2020
£
£
Costs of raising funds
Costs for obtaining restituted artwork
–
746,753
Advertising
185,659
173,695
Other fundraising costs
100,625
107,034
Staf costs
249,225
247,141
Costs of raising funds
535,509
1,274,623
6
RAISING FUNDS		 Assistance to
MDA Israel
Gif in Kind
Other
charitable
activities
Admin and
premises
cost
Total
2021
£
£
£
£
£
2,547,218
27,500
126,767
343,203
3,044,688
3,119,682
467,878
–
–
3,587,560
Total
2020
£
1,817,563
4,001,322
5,666,900
495,378
126,767
343,203
6,632,248
5,818,885

6 RAISING FUNDS

7 DIRECTORS’

Expenses paid to to the Directors’ in the year totalled £Nil (2020- £3,620). These expenses were made for 1 director’s reimbursed travel expenses.

The director, D. Burger has received remuneration from employment with the charity. The salary paid to him amounted to £114,000 (2020- £133,905).

The charity contributed £8,247 (2020- £7,943) to the director’s pension scheme.

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

24

8 SUPPORT AND GOVERNANCE COSTS

Governance
Support costs costs 2021 2020
£ £ £ £
Charitable activities – 76,635 76,635 74,10

Governance costs includes payments to the auditors of £6,720 (2020- £6,600) for audit fees, and the remainder payroll costs.

9 AUDITOR’S REMUNERATION

The analysis of auditor’s remuneration is as follows:

Audit of the annual accounts
Non-audit services
All other non-audit services		 £
£
6,720
6,600
600
600

10 EMPLOYEES

The average monthly number of employees during the year was:

Management and adminstration
of charity
Directors
Total
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2021
Number
2020
Number
6
8
11
12
17
20
2021
Number
2020
Number
356,370
384,126
41,444
35,527
19,186
14,976
417,000
434,629

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

25

Employees (Continued)

The number of employees whose annual remuneration was more than £60,000 is as follows (incl Pensions and Employer’s NIC )

2021 2020
Number Number
60,001 - 70,000 – 1
130,001 - 140,000 1 –
140,001 -150,000 – 1

Contributions totalling £8,247 (2020: £11,543) were made to defined contribution pension schemes on behalf of employees whose emoluments exceed £60,000.434,629

11 TANGIBLE FIXED ASSETS

Cost
At 1 January 2021
Additions
At 31 December 2021
Depreciation and impairment
At 1 January 2021
Depreciation charged in the year
At 31 December 2021
Carrying amount
At 31 December 2021
At 31 December 2020
Amounts falling due
within one year:
Trade debtors
Other debtors
Prepayments and accrued income
12
DEBTORS		 Leasehold
improvements
Fixtures, fttings
& equipment
TOTAL
£
£
£
14,080
76,057
90,137
-
1,948
1,948
14,080
78,005
92,085
3,520
49,640
53,160
2,816
11,960
14,776
6,336
61,600
67,936
7,744
16,405
24,149
10,560
26,417
36,977
2021
Number
2020
Number
£
£
1,305,719
2,285,767
105,704
98,190
17,618
30,993
1,429,041
2,414,950

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

26

Debtors (Continued)

2021 2020
Number Number
Amounts falling due
afer more than one year:		 £ £
Trade debtors 385,436 1,080,907
Total debtors 1,814,477 3,495,857

Trade debtors disclosed above are classified as loans and receivables and are therefore measured at amortised cost.

13 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Accruals and deferred income		 2021
Number
2020
Number
£
£
248,922
1,618,248
1,053,310
60,149
1,302,232
1,678,397

14 RETIREMENT BENEFIT SCHEMES

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charitable company in an independently administered fund.

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

27

15 RESTRICTED FUNDS

Ambulance
stations
refurbishment
costs
National blood
and logistic
centre
Ambulances
Bikes
Bloodmobile
Medical
Equipment
Holocaust
survivors
Training
Gif in kind &
associated
costs
Milk bank
Ofce expenses
General		 MOVEMENT IN FUNDS
Balance at
1 January
2020
Incoming
resources
Resources
expended
Transfers
Balance at
1 January
2021
Incoming
resources
Resources
expended
Transfers
Balance at
31 December
2021
£
£
£
£
£
£
£
£
£
269,401
97,423
(91,272)
(24,445)
251,107
344,333
(595,440)
–
–
790,829
1,490,908
(2,097,989)
20,121
203,869
631,907
(835,776)
–
–
217,682
364,058
(314,535)
(33,857)
233,349
777,260
(848,049)
(103,863)
58,697
234,984
63,432
(166,472)
(64,399)
67,545
20,439
(66,749)
(5,835)
15,400
303,010
873,632
(351,766)
–
824,876
126,478
(770,222)
(169,234)
11,898
22,257
27,467
(3,005)
(1,500)
45,218
55,626
(3,445)
(2,556)
94,843
25,000
34,852
(34,852)
–
25,000
–
–
–
25,000
–
599
(599)
–
–
18,000
–
–
18,000
–
927,581
(940,081)
12,500
–
467,879
(467,879)
–
–
50
–
(50)
–
–
–
–
–
–
–
700
(700)
–
–
–
–
–
–
–
–
–
–
–
2,825
–
–
2,825
1,863,213
3,880,652
(4,001,321)
(91,580)
1,650,964
2,444,747
(3,587,560)
(281,488)
226,663

16 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestricted Restricted Unrestricted Restricted
funds funds Total funds funds Total
2021 2021 2021 2020 2020 2020
£ £ £ £ £ £
Fund balances at 31 December 2021 are represented by:
Tangible assets 24,149 – 24,149 36,977 – 36,977
Current assets/
(liabilities)		 2,196,718 226,663 2,398,381 3,843,477 1,650,964 5,494,441
2,220,867 226,663 2,422,530 3,880,454 1,650,964 5,531,418

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

28

17 OPERATING LEASE COMMITMENTS

At the reporting end date charitable company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

operating leases, which fall due as follows:
2021 2020
Number Number
£ £
Within one year 27,750 27,750
Between two and fve years 47,406 75,156
75,156 102,906
18
RATED PARTY TRANSACTIONS
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2021 2020
Number Number
£ £
Aggregate compensation 139,487 159,743

18 RATED PARTY TRANSACTIONS

The aggregate donations received from the trustees in the year was £70,820 (2020- £38,720)

19 CASH GENERATED FROM OPERATIONS

Defcit for the year
Adjustments for:
Investment income recognised in
statement of fnancial activities
Depreciation and impairment of
tangible fxed assets
Movements in working capital:
Decrease in debtors
(Decrease)/increase in creditors
Cash (absorbed by)/
generated from operations		 2021
Number
2020
Number
£
£
(3,083,888)
(1,333,390)
(16)
(8,278)
14,776
13,850
1,681,380
1,747,313
(376,165)
899,234
(1,763,913)
1,318,729

20 ANALYSIS OF CHANGES IN NET FUNDS

The charitable company had no debt during the year.

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

Winston House, 2 Dollis Park, London N3 1HF T +44 (0)20 8201 5900 info@mdauk.org www.mdauk.org

Registered Charity No. 1113409