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2021-12-31-accounts

Charity registration number 1143272

Company registration number 07469168 (England and Wales)

SHAARE ZEDEK UK

(A COMPANY LIMITED BY GUARANTEE)

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr Michael Sorkin Mr Anthony Rosenfelder Mr Alain Stechler Mr Martin Paisner Mr Michael Sandler Mr Nigel Sloam Charity number 1143272 Company number 07469168 Registered office 4 Theobald Court Theobald Street Borehamwood Hertfordshire United Kingdom WD6 4RN Auditor RDP Newmans LLP Lynwood House 373-375 Station Road Harrow Middlesex HA1 2AW Bankers HSBC Bank Plc 8 Canada Square London E14 5HQ National Westminster Plc 135 Bishopgate London EC2M 3UR Barclays Bank PLC 1 Churchill Place London E14 5HP

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) CONTENTS

Page
Trustees' report 1 - 16
Statement of Trustees' responsibilities 17
Independent auditor's report 18 - 21
Statement of financial activities 22
Summary income and expenditure account 23
Balance sheet 24 - 25
Statement of cash flows 26
Notes to the financial statements 27 - 46

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021

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

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Charity 's Memorandum & Articles of Association , the Companies Act 2006 and the 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 ).

In this context the Trustees have complied with the duty in section 17 (5) of the 2011 Charities Act in giving due consideration to the Charity Commission's guidance on Public Benefit. The report is prepared in accordance with the small companies' regime (Section 419(2) of the Companies Act 2006).

Principal aims and objectives

“To save a life is to save the world. Nowhere is this clearer than at Shaare Zedek, a hospital not just with a heart but with a soul that makes the world a better place."

Quote from a relative of a Shaare Zedek patient

Our mission is to support, by all such means as may be charitable in law and for exclusively charitable purposes, Shaare Zedek Medical Centre (Shaare Zedek) (Jerusalem) in providing world class care for all patients irrespective of their ability to pay, nationality, age, race or religion. We provide financial support to fund services, capital projects, research and the purchase of equipment for the hospital.

History

Founded in 1902, Shaare Zedek has been known as the "Hospital with a Heart" for nearly 120 years. This reputation as a patient's first choice of hospitals stem from its unwavering commitment to all its patients, regardless of race, religion, political view or country of origin. All patients who are admitted receive the most advanced medical treatment available in a compassionate, supportive and nurturing environment. The hospital’s ethos, "delivery of care and pioneering approaches to research", provides hope for us, hope for Israel and hope for the world.

Since 1902, the Hospital has chartered the course of Jerusalem’s modern development and has been instrumental in the city’s growth. Over half of Jerusalem’s children live below the poverty line. Shaare Zedek was one of the first hospitals in Israel to recognise the need for specialist paediatric medical facilities and is home to Jerusalem’s only dedicated Women and Children’s Hospital.

Shaare Zedek 2021

Today Shaare Zedek is a 1,000-bed facility with close to 100 departments, treating 800,000 patients annually. As the fastest growing hospital in the region, the hospital continues to respond to and plan for the needs of Jerusalem’s uniquely diverse population. Its current major expansion projects include the completion of the Radiotherapy Institute, a much-needed new facility to support patients from across the region. The most pressing expansion is the doubling of the size of its Emergency Department. The daily growth in demand on its urgent care facilities in the region necessitates a bigger department with the latest technology to ensure that they are much better equipped to respond.

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Message from Shaare Zedek Medical Centre’s Director General

Dear friends,

As we entered 2022, we found ourselves in a time of continued and in many ways unprecedented challenge. While we have been operating at the forefront of Israel’s COVID-19 response since early 2020, this latest wave presented a level of operational difficulty very different from any previous wave.

Most challenging has been the high number of staff members who were either testing positive or in isolation due to infected family members. At times, as many as 15% of our workforce were unable to come into work. Responding to this challenge in a way that ensures our high level of care is never compromised has required extensive shuffling of shifts and responsibilities. All of this at the very time when our Corona Care Service was treating the highest numbers of patients since the start of the pandemic – a number which surpassed 200 patients, many of whom were in serious and critical condition.

Celebrating Shaare Zedek’s 120th anniversary in 2022, we have been witness to many difficult periods throughout that remarkable history and we know that we will similarly grow stronger as a community and a hospital out of this current crisis. I am hopeful and confident that by the time many of you read this message we will be in a far better situation but whatever the challenge and whatever the need we are prepared to respond.

The coming months promise to be ones of exciting development and progress for our hospital. We will be opening the expanded Department of Emergency Medicine as well as the new Helmsley Cancer Centre, two projects that we know will significantly enhance our ability to provide the advanced and compassionate care that has always defined our hospital.

Coping with these challenges has necessitated the strong support of our friends around the world. We are deeply thankful for your generosity and welcome the chance to only further strengthen those partnerships on behalf of the people of Jerusalem and Israel.

Wishing you and your families only good health and happiness.

Professor Ofer Merin

Director General Shaare Zedek Medical Centre

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Objectives and activities

Activities

In order to achieve our key objectives, Shaare Zedek UK (SZUK) employs a small office team led by an Executive Director working in partnership with trustees and other lay leaders, supported by a small number of energetic volunteers .

SZUK promotes awareness of the activities of Shaare Zedek. We also seek to promote support of the charitable activities of the hospital, and in particular its charitable activities for the public benefit in health welfare, medical and scientific advancement and best practice in patient treatment. We raise funds through donations, legacies, solicited mailings, events, direct approaches and special appeals.

Achievements and Performance

The impact of our fundraising

Shaare Zedek relies on its donors to provide the standard of care and innovation for which the hospital is known. Every day at Shaare Zedek brings new challenges and achievements. Shaare Zedek prides itself on its ability to adapt to any situation and provide excellent care when it is most needed. Our expertise in emergency preparedness has achieved global recognition during the fight against Covid-19. Below are some examples of the varied challenges and achievements in 2021, all of which would not have been possible without the support of our donors .

Historic budget negotiations with the Government

Over the past few years Shaare Zedek alongside six other public Israeli hospitals has been actively working to secure government funding. These negotiations intensified since the onset of the Coronavirus pandemic. The underlying objective of their efforts has been to address the major imbalance between these seven hospitals and the medical centres owned by the government and HMOs. Whilst all hospitals provide a public service without discrimination, operating under the same economic ecosystem implemented by the Ministry of Health, the seven public hospitals have been historically deeply discriminated against when it comes to receiving necessary funding. While the government and HMO hospitals ' annual deficits were fully reimbursed, Shaare Zedek and others were left without any government support.

For decades this inequality was maintained ; with Shaare Zedek and others receiving no government funding, but for many reasons, relating to the overall scope of our activities and the growth of the populations Shaare Zedek Medical Centre ( SZMC ) serves, this became an untenable situation. This new government support was only approved to help offset the sizable deficit which SZMC (and all the other hospitals now promised support), developed in recent years, exacerbated by the change in operations during the Coronavirus pandemic.

In January 2021, following intensive negotiations, the seven Israeli public hospitals, including Shaare Zedek Medical Centre, announced an agreement with Israel’s Ministry of Finance, which has agreed to include allocations for these hospitals in the budget for the year 2021. The agreement also established that a committee will be created made up of representatives of the Ministry of Health, the Ministry of Finance and representatives of all public hospitals. This Committee will present its recommendations to the Government in advance of deliberations over the 2021 budget to describe the fiscal status of these hospitals – and with the specific goal of ensuring equal treatment alongside the governmental hospitals.

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

This followed an exhaustive campaign led by Professor Merin and the Director Generals of the six other public hospitals affected by the current inequality in the healthcare system and the financial crisis. The agreement from January 2021 was not immediately honoured. Following further negotiations, we expect Shaare Zedek to receive its first round of g overnment funding in 2022.

Whilst we can no longer state that we do not receive government support, it is important that all of us, including the donor community, appreciate that this does not change the critical nature of fundraising. The government funding will cover only 7% of our current operating budget and will need to be reapproved each year. As a hospital that is always moving forward in response to constantly expanding needs, donor funds are more important than ever for Shaare Zedek today and for the years ahead. There is no doubt that these changes are vital for our survival. SZMC is deeply indebted to the countless individuals led by Professor Merin who worked tirelessly to achieve this objective - and continue to work to address many ongoing obstacles.

Coronavirus: treating Jerusalem through a pandemic, globally relevant research and techniques

The Coronavirus pandemic continued to affect global communities in 2021. Government enforced lockdowns remained in place across Israel until April 2021. The vaccination campaign began in December of 2020, with hospital workers amongst the first group of citizens to receive the vaccine. Between June and September, case numbers and hospitalisations increased, although at this stage in the pandemic only the most severe of cases were hospitalised. In November Israel confirmed its first case of the O micron variant. Serious cases rose again towards the end of the year and early into 2022.

This period of time has changed the world. Whilst nearly every aspect of our lives has been impacted by Covid-19, Shaare Zedek’s role in responding to this disease has been not only the source of enormous challenge, but one of great pride.

The challenge has been in treating a disease that the medical world is only just beginning to understand, whilst being forced to overhaul much of the patient-care infrastructure. Compounding that challenge was the massive investment of financial and human resources placed into Shaare Zedek’s Corona response programme, and how the crisis forced the temporary closure of many other departments of the hospital.

This pride emanates f ro m the fact that we quickly became Israel’s second most active C orona care hospital and we played a critical function in the care of thousands of Covid-19 patients. There is no doubt that the levels of preparedness that were put into place, some of which were enacted months before the world had even heard the term Covid, were instrumental in the hospital’s success.

Whilst treating Coronavirus cases has certainly been a significant focus over the last year at Shaare Zedek, the hospital has remained focused on the broader vision of comprehensive medical care. All major activities remained in place alongside the developmental projects. The crisis required tremendous investment for rapid construction and the purchase of new equipment. This was only possible thanks to the generosity and quick response of our donors.

Coronavirus Family Social Support Hotline

In April, nearly a year after first opening, Shaare Zedek officially closed the Corona Family Social Support Hotline. Staffed by a team of social workers and volunteers, the Hotline connected families and Corona patients being treated in the hospital. The Hotline processed over 1,500 direct requests from family members on behalf of patients. The staff managed requests in multiple languages ensuring constant open communication between families, patients and medical staff. With a very significant reduction in the number of patients being treated in the Keter (Corona) Ward, the Department of Social Work continued to process requests from families with direct communication with the Ward's social workers.

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Coronavirus Research

The focus of Shaare Zedek’s research work is clinical. This means Shaare Zedek researchers and clinicians are able to evaluate the effectiveness of their current work and develop techniques and treatments for the needs of their current patients as well as those in the future. Having treated so many Covid-19 patients gave Shaare Zedek an opportunity to learn quickly and share their findings with the global health community. Shaare Zedek research into the effectiveness of Covid-19 vaccines on pregnant women gained international prominence as medical communities urged pregnant women to get vaccinated. As a result of a study led by Prof. David Zadok, Director of Shaare Zedek’s Department of Ophthalmology, the medical community is now more aware of a potential complication associated with a linkage between the COVID-19 vaccine and corneal transplants. In addition to identifying the issue, the authors have presented recommendations for a pharmaceutical fix.

An example of how our research is directly applied to our clinical work with patients is the opening of the Sports Medicine Rehabilitation Program for Post-Corona Patients. In February 2021, a Shaare Zedek research study indicated that 95% of recovered Corona patients showed no evidence of irreversible respiratory or cardiac damage after a period of three months and that the majority of symptoms had dissipated by six months. Professor Gabriel Izbicki, Director of the Louzoun Pulmonary Institute at Shaare Zedek who was responsible for the study noted that the results were certainly encouraging, “Almost all the patients we studied after six months reported a marked improvement in their overall conditions and the test results reflected that. We found that regular fitness activities of three to four times a week were direct contributors to helping the patient recover that much more quickly.”

Following these findings, the Heidi Rothberg Sports Medicine Centre at Shaare Zedek developed a dedicated program for individuals suffering from the long-term effects of the disease. The program was designed to offer an individualized response for patients with each case accompanied by doctors, dieticians, and physiotherapists who provided the relevant, comprehensive response that was needed. Many of these patients are worried about resuming physical activity and do not believe that they are able to do so. The dedicated fitness facility is specifically designed to help patients with medical histories under the guidance of sports medicine specialists and support personnel. The professional confidence and training that is offered through this rehabilitation process allows patients to improve their health and overall quality of life.”

World First Mitral Valve Record

In April, Shaare Zedek became the first hospital in the world to perform three mitral valve replacement procedures in one day via catheterization using the Tendyne Valve System.

The procedure was performed for the first time earlier that week, and provides a medical response for patients experiencing leakages in the mitral valve of the heart who, until now, had no effective options other than invasive open-chest procedures that comes with significant risks and extensive recovery times. This new approach presents many new options for all types of patients with complex cardiac disease.

Shaare Zedek takes great pride in serving as a local and international leader in advancing these procedures and embracing new technologies on behalf of our patients and the community.

Emergency Drills

In November, Shaare Zedek’s emergency preparedness teams took part in a national home front command drill, simulating a military-style attack in the north of the country.

In the event of war breaking out in the north, this would likely result in significantly increased patient traffic to hospitals in other parts of the country. The drill, which was carried out in partnership with the IDF Homefront Command and Magen David Adom, simulated Shaare Zedek absorbing a large number of injured and ill patients from the hospitals in the north.

In light of our extensive experience in absorbing large numbers of patients and following the hospital’s recent designation as a Level 1 Trauma Centre, Shaare Zedek was chosen as the first Israeli hospital for this specific drill. The exercise required the participation of teams from throughout the hospital and was coordinated by Sarah Goldberg, Shaare Zedek’s Disaster Preparedness Coordinator and Dr. Ariel Rokach, Director of Shaare Zedek’s Emergency Response Centre.

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Mass Casualty events: Givat Ze’ev Synagogue bleacher collapse

As the festival of Shavuot began, Shaare Zedek provided comprehensive mass casualty response following the collapse of a crowded set of bleachers at a synagogue in Jerusalem’s Givat Ze’ev neighbourhood. Despite the timing of the event on the holiday, over 200 hospital staff members from all relevant medical, paramedical and administrative departments arrived to support the hospital response.

Over the course of the evening, the emergency departments treated 115 patients. 8 were admitted in serious to critical condition and required life-saving surgeries. In addition to the direct medical care provided, our social work team responded to the developing and ongoing needs of patients and their families.

National support after Meron tragedy

Whilst the events of the deadly Lag BaOmer crush in Meron were being reported, Shaare Zedek created a dedicated emergency service for those suffering from mental trauma associated with the events. The service was run in coordination with the Ministry of Health and other relevant services in the Jerusalem area. Shaare Zedek was able to provide a service staffed by our social work and trauma team, who have extensive experience in dealing with traumatic events.

A model of Coexistence during heightened tensions

During the pandemic, the stories of Arab doctors or nurses helping Jewish patients to say Shema Yisrael or the prayers that accompany the departure of a soul offered a ray of hope in a bleak time. A few weeks after lockdown ended, riots spread across several cities throughout Israel with mixed Arab and Jewish populations. In addition to treating the people injured in these attacks, our medical team- together with medics across Israel- responded by sharing messages of unity from what the Israeli press called our “Island of coexistence” at Shaare Zedek.

Speaking to the press at the time, Shaare Zedek’s President, Professor Jonathan Halevy said “Between 20% and 25% of our 5,000 employees are Arab, which is about the same rate of Arab patients we have. I believe that our multi-ethnic, multi-cultural group well represents our multi-ethnic multi-cultural city. We are all united by the mission to work for the patients. I know it sounds very banal but it is true. Politics remains outside the hospital.”

Professor Halevy described these times as “very trying. I don’t think there is a single Israeli citizen today who is not worried for this unprecedented situation. Medical staff are no different except that no matter what, they always report for duty.” Professor Halevy pointed out that the head of Shaare Zedek’s corona department was an Arab doctor from East Jerusalem, while his head nurse was a Charedi (ultra-Orthodox) mother of seven. “They worked hand in hand,” he said.

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Sinkhole collapse

On 7th June, a large sinkhole opened up in a parking area adjacent to the hospital’s main entrance. The incident occurred due to a tunnel collapse: the affected area sits atop a worksite where the Route 16 tunnel was under active construction. While seven cars were damaged in the collapse, thankfully there were no injuries. Following the collapse, a complete engineering and safety survey was performed throughout the hospital campus. The comprehensive review was carried out in cooperation with engineers from the Jerusalem Municipality, the Homefront Command, the Israel Police and other relevant professional agencies. The review confirmed that the affected area was completely beyond the structure of the hospital itself and was no danger to the safety of any of the buildings.

Democracy in times of pandemic

In March, amidst an unprecedented election, where Shaare Zedek’s main Corona Unit remained in operation, a dedicated voting station was set up within the Unit allowing COVID-19 patients to exercise their democratic voting rights. In addition, three other voting stations were in place across the hospital to serve both patients and staff who would be unable to vote close to their homes. Havatzelet Daniel, who coordinates the election process within the hospital said, “We have made every effort to ensure that all patients are able to vote and of course this year we had the additional challenges surrounding the Corona ward. The election process in the hospital will once again be carried out with professionalism and respect for the democratic process.”

New 800 space car park opened

In April Shaare Zedek opened its new parking complex. With over 800 parking spaces, the underground complex responds to what we know has been a major challenge for those wanting to visit the hospital. Multiple floors of expansive and well-lit parking areas feed into a series of elevator banks allowing easy and quick access to the main entrance of the hospital. The complex includes a dedicated parking area for radiotherapy patients, with their own entrance into the new Cancer Centre, minimising their exposure to sick patients and shortening the distance for them to get to their appointments.

National and International Impact: Partnerships, collaboration and awards

This year as in other years, Shaare Zedek’s work with technology and bio-tech companies, hospitals, governments and charities has helped it to provide better care for its own patients as well as sharing best practice around the world. This only serves to grow its global reputation for excellence and innovation. These achievements in clinical excellence, pioneering research and collaboration with its international counterparts have generated public benefit with local and global impact, attracting the attention of world media and praise in international journals. These partnerships provide huge benefits to its patients, often enabling Shaare Zedek to embrace cutting-edge technology and equipment at no cost to the hospital.

Teams across the hospital are regularly involved in supporting medical provision and infrastructure in developing countries. One such initiative is its Cardiology partnership in Ethiopia, training two new specialists every year to strengthen Ethiopia’s expertise in Paediatric medicine. This year the hospital has hosted several international governmental and medical delegations to share its expertise in adapting to the Covid-19 global pandemic. Our medical experts have also visited other countries at their request to help build robust infrastructure and systems in facing the ongoing pandemic.

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Professor Bornstein appointed Chair of special commission on neurological care

In June, Professor Natan Bornstein, Director of the Helmsley Neurological Institute and an internationally respected expert in Neurology, was appointed to serve as Chair of an Israeli Ministry of Health special commission on Neurological care. The creation of the commission comes in light of an increase in neurological morbidity cases throughout the country. The commission is designed to provide overall recommendations that can then be implemented to improve neurological care across the national health system.

According to Professor Bornstein, there has been a noticeable increase in brain disease in Israel which demands a systemic response – both on the level of hospital-based medicine and with increased awareness and training on the community-medicine level. “This commission which I will chair will create a detailed assessment of the increase that we are witnessing, and map the existing infrastructure so we can better determine where we need to invest in additional resources. I welcome this opportunity and thank the Health Ministry for placing their confidence in me to lead this effort to enhance and improve the level of neurological care throughout Israel.”

Professor Halevy awards and appointments

In October, Shaare Zedek’s President, Professor Halevy, was reappointed as Chair of the Public Committee of the National Basket of Health Services. The Chair is largely viewed as one of the most prominent and influential positions in the Israeli healthcare system as it overseas the body responsible for selecting the pharmaceuticals and medical technologies that are included in the “basket” of coverage within the country’s public health insurance structure.

Professor Halevy said, “I am honoured to once again be charged with helping guide Israel’s public healthcare infrastructure and helping our nation to serve as a leader in advanced and compassionate medicine on behalf of our citizens. I view this appointment as a signal of the important place that Shaare Zedek has come to play for our nation and this is certainly not just an honour for me but for the Shaare Zedek family at large.”

During the pandemic, Professor Halevy became a leading trusted public figure that the populace looked to for medical advice. In recognition of more than three decades of service in leadership, and for his specific role during the pandemic, Professor Halevy was honoured as a Yakir Yerushalayim (Worthy Citizen of Jerusalem.) The award is the city’s highest civilian honour and bestowed on individuals who have made a historic contribution to the development of Jerusalem. In accepting the honour Professor Halevy said, “I can think of no other city in the world that is more fitting to raise ones children and to instil within them the values of our heritage and traditions. In 1988 when I came to Shaare Zedek, it was a small and humble hospital lacking many of the major departments that define modern medicine. My successor, Professor Ofer Merin, inherited a hospital with over 1,000 beds, that is able to offer the people of Jerusalem everything that advanced medicine has to offer. Today we are the city’s largest hospital, so I take great pride in my life’s work which has allowed this hospital to achieve these heights while always preserving the traditions that make it so special.”

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Gold-Level Certification in Preventing SIDS, a first for Israel

In November, Shaare Zedek became the first Israeli hospital to receive Gold-Level Certification Awarded by ATID, the Israeli Foundation for the Study and the Prevention of Sudden Infant Death in an Effort to Prevent Sudden Infant Deaths and Sleep-related Deaths. Shaare Zedek’s Wilf Children’s Hospital sees over 22,000 births annually, the most of any Israeli hospital, and among the highest in the Western world.

To receive the certification, Shaare Zedek implemented an educational program developed by Dr. Shatz and ATID whereby all maternity nurses are trained to educate new parents on the measures known to reduce the incidence of SIDS. Dr. Shatz explained that “Every staff member who undergoes this course and then passes along these lessons to parents has the ability to directly save a child’s life.” Over a year ago, as part of the certification process, Shaare Zedek began putting all infants in the hospital to sleep in specially designed “sleep sacks” that can reduce the risks associated with SIDS and sets an important example for parents and other hospitals.

Dr. Shatz said that ATID’s surveys indicate that 82 percent of parents described the hospital staff as the most important resource for learning how to care for a new-born infant. “For that reason, those first 48 hours in the hospital are critical for educating parents on how to reduce the incidence of sudden death and that is why this hospital-based initiative is so important for the more than 185,000 babies that are born in Israel every year.”

Shaare Zedek Scientific

Shaare Zedek Scientific (SZS) had another year of rapid growth in 2021. It is SZS’s goal to act as an innovation bridge between leading companies in the fields of medical research and the hospital. SZS is responsible for research and development collaborations between the Medical Centre and industry, including implementing new technologies in the field of digital health and providing access to medical data through Shaare Zedek's Innovation Centre.

A central pillar of Shaare Zedek’s vision is to promote the medical field by engaging in research at all levels. This mission has guided Shaare Zedek for nearly 120 years, to advance innovative modes of medical care that embrace new technologies and methods for the benefit of the community. Indeed, SZS encourages clinicians and scientists to maximize their innovation potential in industry and investigator-initiated research projects across a broad range of applied and theoretical topics and disciplines. This includes basic science, clinical trials, and practical innovation such as development of medical devices. This helps promote an always-expanding and increasingly productive collaboration with key industry players. Shaare Zedek Scientific provides the professional support the investigators require to foster a fruitful interaction with industry players and other academic institutes. Today, through the dynamic infrastructure Shaare Zedek has created, it is increasingly positioned to push those goals even further and expand beyond boundaries for enhancing healthcare science all over the world.

SZS has formed many partnerships this year in researching Covid-19. Our BioBank has become a resource to companies around the world. A partnership with Sight Diagnostics has focused on early detection and fighting Covid-19. Throughout the year it has been mutually benefiting from a close partnership in researching early diagnosis methodologies for Covid-19 patients. Utilizing Shaare Zedek’s BioBank, home to one of the world’s largest resources of bio-data related to Coronavirus, SZS together with Shaare Zedek is continuously advancing its understanding of this virus and enhanced methods for diagnosis and treatment. Sight Diagnostics won the Genesis Prize for this work in early 2021.

Its partnership with Google continues through their life-science focused sister company, Verily. SZS recently announced a collaboration on a clinical study of AI-powered colonoscopy.

Another partnership with Sight Diagnostics has been formed to identify the possibility of blood cancer using a combination of images and data collected from Sight’s OLO device and patient clinical information provided by the hospital. The research focuses on developing the capability to detect and classify white blood cells, and more specifically, to differentiate between different types of white blood cells in the immune system called lymphocytes, a procedure that has greatly challenged the global haematological community.

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

As Shaare Zedek enters into new areas of patient care, whilst developing new technologies and research focused on medicine for the future, Shaare Zedek believes its unique approach to integrated and personalised medicine will continue to cement its mark on Jerusalem, Israel and across the world.

UK funding

Donors choose to support any of the hospital’s 100+departments with which they have a personal affinity, as well as responding to our appeals to support the needs of specific departments as dictated by the Board of the hospital. This year donors support returned to a more varied use across the hospital departments, compared to 2020 where the majority of donations were in support of our emergency coronavirus appeal.

The hospital departments benefitting most from UK donations in 2021 were the Emergency Department, Radiotherapy Institute, Neurology & Neurosurgical Department, Fertility and IVF Department and the Neonatal Intensive Care Unit, Outpatient clinics, Coronvirus “Keter” Unit, Bikur Cholim Campus, Paediatric Dialysis, Sleep lab, Maternity, Paediatric Educational Institute and Paediatrics. In addition to this, several donors choose to fund Nursing Scholarships. We also had many donors respond to our small but important campaign to fund self-care package for any staff self-isolating due to Covid-19.

In 2021, donations from supporters who had asked for their donations to be used for most urgent needs of the hospital were allocated throughout the departments listed above. Where we receive donations without restriction, the UK office works with colleagues at Shaare Zedek to identify appropriate use of funds to ensure the maximum impact of UK donations. The majority of these funds were used for the Coronavirus Departments and general equipment, such as surgical gloves, which are used across the hospital.

There is a strong British footprint in every one of the hospital's 14 internationally recognised Centres of Excellence. Fundraising in the UK has always been conducted in close partnership with the leadership of the hospital in Jerusalem. In March 2019 Professor Ofer Merin became the Director-General of Shaare Zedek Medical Centre, with former Director-General Professor Jonathan Halevy becoming the President of the hospital. Professor Halevy continues to lead the fundraising strategy for the hospital in his new role. Collaboration between professional colleagues and board members grows each year.

This year our Executive Director and a number of our lay leaders attended the online board meeting of the International Board of Governors of the hospital. We have enjoyed a close working relationship with both the President and Director General of the hospital and their teams. This year the UK team joined a call bringing together the international offices fundraising for Shaare Zedek to discuss further collaboration. We look forward to a continued partnership with Professors Halevy and Merin and are indebted to them for their visionary leadership and continued service. We are grateful to Uri Schwarz and the entire fundraising team at Shaare Zedek Medical Centre who support our fundraising efforts on the ground in Israel.

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Objectives for 2021- a difficult year

These were the specific objectives in 2021 and how we performed to meet them:

Objective 1: Fundraising for Shaare Zedek Medical Centre

Financial and operational planning for 2021 was conservative. Without knowing how long the pandemic would last or the impact it would have on our work and the work of the hospital, our financial forecast was prepared for a scenario where appeal costs were covered and a small number of major gifts were received. Despite the uncertainty of the times, the generosity of our donors has resulted in us being able to raise £2,110,242 this year, with £1,696,607 already sent to the hospital.

Fundraising programmes and events

The most successful fundraising methods were part of our ongoing relationship with existing major donors, legacy gifts and in response to direct mail and email campaigns.

As in 2020, the impact of Coronavirus meant a continued suspension of in-person events. The increased interest in online events is an opportunity for us as we seek to find ways to connect donors in the UK to the hospital in Israel. A unique online event held this year was the 50 year reunion for our young committee. The event was held on the date of the anniversary of their first ever committee event. Some of the committee remembers have remained involved with the charity throughout the 50 years. For some of them this was the first time they had seen each other since their time on the committee. Thanks to the 1971 committee, we raised £4,970. We hope to arrange an in-person event with the committee in the future.

The work of our staff team during this period has been exemplary and inspirational. In addition to our responsibilities to fundraise for the hospital we felt a responsibility to our donors. As well as this, fundraising staff spent a huge amount of time looking after our donors, signposting them where they needed professional support and providing a sounding board for donors who value a relationship with the team on a personal level.

Our Lifecycle giving programme continues to be popular, offering certificates and personalised cards for those celebrating birthdays, anniversaries and festivals, and those who wish to support Shaare Zedek by asking family and friends to make donations to the hospital. Lifecycle giving also includes Yahrzeit donations and our Permanent Yahrzeit Programme, the latter providing comfort and connection for donors wishing to honour the memory of loved ones with a gift to support the health of future generations. Lifecycle giving income has stayed at a similar level to last year. We hope to invest in this income stream as part of our 2023 strategic review.

Our marketing and communications strategy has continued to develop with an emphasis on personality and warmth, showing supporters the impact of their gifts and providing the living bridge between donors and the hospital. Our website, Facebook page and regular email updates allow donors to stay up to date with activities in the UK as well as at the hospital. Donors now have the ability to fundraise within our website, setting their own fundraising challenges and activities without the cost of using third party platforms, enabling all of the funds raised to benefit the charity directly. Our social media channels have been a central point through which we have engaged with supporters and wider audiences during the pandemic. The emotive stories from the hospital have provided much inspiration and motivation for donations.

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Other than a nominal decrease, income from appeals has stayed at a similar level to 2020. We were expecting to see a larger decline in income following the strength of support for and urgency of the Covid Emergency campaign. Supporters were warm in their response to our direct mail campaigns and keen to do what they could, understanding the continued need for support during the pandemic.

Several synagogues, notably Edgware Adath Yisroel Synagogue and Mill Hill United Synagogue, support our endeavours through their Kol Nidre Appeals. We are trying to develop relationships with more communities to increase awareness and fundraising capabilities.

Calendar advertising has been declining in recent years. The calendar is an effective marketing tool, particularly for legacies and as such, is still an important publication which is also profit making. In order to maximise profits, we hope in 2022 or in 2023 to recruit an advertising committee who can work on bringing in calendar advertisements throughout the year.

Several donations of goods in kind have allowed us to expand our community outreach work at very little additional cost. For each of the Jewish festivals during lockdown, we marketed an activity pack for children. The packs contained age appropriate activities to keep children entertained during the festivals. Each pack purchased paid for a self-care package for a member of hospital staff self-isolating due to Covid-19. The support from UK donors in funding the Covid-19 Care Packs has been greatly received by everyone at Shaare Zedek. The packs proved very popular and cost effective for us to sell and raised £4,571 in 2021. This initiative has now ceased as it is no longer required.

Objective 2: Payments to hospital

During the year the Charity remitted £1,776,392 (2020: £4,312,281) to Shaare Zedek Medical Centre in support of its activities and for related support and governance costs.

This is a huge achievement for our professional team. With a small staff all working from home during lockdown, we faced many challenges ranging from school closures and no childcare for half the team to one member of staff being hospitalised with Covid-19, and suffering a bereavement due to the virus. Despite the large challenges every staff member faced during this period, the charity still raised a significant sum this year. At various times during the pandemic we made use of the Government Coronavirus Job Retention Scheme (‘furlough’). One member of staff was furloughed from the beginning of the scheme and others made use of the scheme when it became a flexible arrangement.

Objective 3: Improving our operations and strategic planning

The organisational strategy continues to be implemented with a focus on key areas for organisational growth and fundraising opportunities based on our organisational strengths, key areas for improvement and new opportunities. All areas of activity are subject to regular evaluation and analysis. The global pandemic had an unforeseen impact on our operations in 2021. As such we are in the process of regularly reviewing strategic planning and income forecasts in light of the ever-changing landscape. We anticipate a full strategic review in early 2023 once a new Chair is in post.

We continue to develop contacts with other potential Members and a new committee of lay leaders is in the process of being recruited as part of succession planning by our trustees.

Supplier costs are regularly reviewed resulting in savings from renegotiating supplier contracts. As our communications materials continue to increase donor engagement, it is our intention to create sponsorship opportunities to meet these costs in order to keep administrative expenses as low as possible.

The CRM system used to manage donor records is regularly updated to comply with the GDPR guidance to ensure we are fully compliant with relevant legislation. We continually update our donor records in advance of our appeals to ensure donors are contacted only when they wish to be, keeping good faith with our supporters and saving the charity unnecessary expenditure on producing and mailing appeals. We are registered with the Fundraising Regulator and the Fundraising Preference Service and to date have only received one request for record removal (in 2017) and no complaints from either agency.

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Financial review

The current economic climate continues to impact on our ability to raise new funds. Given the tough climate we were delighted to have raised £2,110,242 (2020: £4,492, 953 ). We have maintained a healthy financial position with closing fund balances totalling £966,903 (2020: £849,484) of which £57, 330 (2020: £42,728) relates to restricted funds. Furthermore, £ 37,606 (2020: £93,018) within the closing unrestricted fund balance is designated for specific purposes. Hence, the general unrestricted funds the charity holds amounts to £ 829,502 (2020: £671,273) at the end of the reporting period after making allowance for restricted and designated funds. We are delighted to have raised significant funds enabling us to send £1,696,607 (2020: £4,244,962) to Shaare Zedek in Jerusalem in relation to our charitable activities and support costs. This year we were in a position to send over 80% of our total income directly to the hospital, the balance being held in reserves in the UK.

Legacy gifts continue to be a vital source of income, with 39 % of all donations this year being from legacy gifts in donors’ wills and one large gift of £449,232. Legacies are unpredictable, at times materialising without our prior knowledge and we continue to maintain and develop this income whilst recognising the need for a diversification of income from other sources to maintain the level of support we currently provide to the hospital. We also recognise the importance of the connections we foster with our donors, and the value they place on our relationships in trusting us to be guardians of their legacies.

General donations, including major gifts, totalled £1,291,883 (2020: £3,477,771) . Although we continue to enjoy the support of our loyal donors, the economic situation continues to be challenging. In common with other charities, we continue to find ways to engage new donors in a challenging climate. Existing donors too are lowering their donations due to reduced income to their Trusts or changes in their personal circumstances due to the pandemic.

Reserves policy and going concern

It is the policy of the c harity to maintain unrestricted funds, which are the free reserve s of the c harity, at a level that takes account of the needs of the likely administration costs of the c harity over the next 24 month period. The Board has the power to invest in such assets in secure money market instruments.

Risk management

The Board has assessed the major risks to which the charity is exposed, in particular those relating to the operations and finances of the Charity. The Board is satisfied that systems are in place to mitigate its exposure to those risks.

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Plans for the future

With a new Director General now in post at Shaare Zedek, our Executive Director and trustees are in discussions with the hospital regarding their plans and priorities for the future. We are supporting the Emergency Room and Radiotherapy Institute capital building projects in addition to the annual requests received from the hospital to upgrade existing equipment and facilities and to purchase the latest new technology.

2021 has been a challenging and rewarding year for the charity in the UK and the hospital in Jerusalem. We hope to return to our regular programme of events and activities and use our ability to connect donors to our medical professionals through further online events. There is an acute need to obtain mid-level and major gifts on an annual basis or preferably, on a multi-year pledge basis. Efforts to increase major gift fundraising were planned to focus on applications to trusts and foundations, alongside our renewed efforts to engage new and existing mid-level donors. As a result of the Covid-19 pandemic, fundraising has largely been focused on supporting the efforts of the hospital to fight the pandemic, whilst ensuring key capital projects did not fall behind schedule.

Our professional team has worked exceptionally hard in difficult circumstances to ensure that our levels of activity and donor engagement could continue to support the hospital. Our financial forecast for the year has been impacted by the pandemic but none-the-less, we managed to finish 2021 with a higher level of unrestricted funds than anticipated.

From the internal research we have conducted, the SZUK message is very strong with existing donors. We need to expand awareness of the hospital amongst the Jewish community and wider society to ensure that we can engage with future generations of supporters. The core brand message has informed new approaches to marketing, events and other activities that work towards this aim. Engaging new major donors will be a greater challenge in the current climate but we are working on creative ways to use the international resonance of a front-line hospital fighting a global pandemic to engage new supporters at all levels.

On 9 September 2022, Michael Sorkin stepped down as Chairman of the charity and we wish to thank him for his invaluable dedication, support and direction during his chairmanship over many years. However, we are delighted to welcome Jonathan Paull, who joined our board as the new trustee and Chairman of the charity on 9 September 2022. Jonathan will now be leading the charity in a strategic review of our work with a view to a clear operational plan to develop all the areas of income and supporter generation.

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Structure, governance and management

The charity is a company limited by guarantee, incorporated on 14 December 2010 and registered as a charity on 8 August 2011. The charity's reference and administrative details are as set out within these accounts. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association.

The Board of Trustees

The Trustees, who are also the directors for the purpose of company law, and who served during the year were:

Mr Michael Sorkin Mr Anthony Rosenfelder Mr Alain Stechler Mr Martin Paisner Mr Michael Sandler Mr Nigel Sloam

Key personnel

The following individuals whilst not statutory members of the charity were involved in an advisory capacity:

Dan Adler David Bernstein David Cohen Geoffrey Goldkorn Eva Greenspan John Jay Margot Lew Angela Margolis-Raz Marcus Margulies Hilary Natoff Jonathan Paull Marcus Pearl Margaret G Rothem Simon Sackman Nolan Wengrowe Michael Ziff Emma Pearl

Recruitment, appointment and terms of office of Trustees

Trustees are appointed in accordance with the Charity's Memorandum & Articles of Association. As stated on page 14 above, we are delighted to welcome Jonathan Paull as a new trustee, who was appointed on 9 September 2022.

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Trustee Induction and Training

New trustees are made aware of the organisation al structure of the c harity and are shown financial statements of the charity for the three preceding years.

All t rustees are now already familiar with the practical work of the c harity. Induction procedures are in place for new t rustees .

Operations and staffing

The trustees delegate day to day management of the charity to the Executive Director, Simona Bennett to deliver the aims and objectives of the charity.

Safeguarding

Shaare Zedek UK has a Safeguarding Policy. In 2019 the Executive Director completed safeguarding training with the NSPCC. The charity makes regular enquiries of the hospital with regard to its own robust safeguarding policies and notification of any relevant safeguarding issues we should be aware of. All SZUK staff will now be required to undergo safeguarding training and DBS checks as we expand our outreach work into the community.

Related parties

Included within other creditors is an amount of £ nil (20 20 : £ 83 ) due to Sharzed Advertising Limited, a 100% owned subsidiary which was struck off after the balance sheet date .

Aggregate donations received from related parties without conditions amounted to £ 595,956 (20 20 : £ 265,925 ) for the year.

Aggregate remuneration of key management personnel amounted to £78,0 00 (2020: £72 , 6 00 ) for the year.

Auditor

A resolution proposing that RDP Newmans LLP be reappointed as auditors will be put to the members.

Disclosure of information to auditor

Each of the Trustees 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.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

The Trustees' r eport was approved by the Board of Trustees.

Mr Michael Sorkin

Trustee Dated: 28 September 2022

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees, who are also the directors of Shaare Zedek UK for the purpose 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 which give a true and fair view of the state of affairs of the charity 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 Trustees are required to:

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

The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF SHAARE ZEDEK UK

Opinion

We have audited the financial statements of Shaare Zedek UK (the ‘charity’) for the year ended 31 December 2021 which comprise the statement of financial activities, the summary income and expenditure account, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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 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 charity’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.

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 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 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.

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF SHAARE ZEDEK UK

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report [or the strategic report] included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the s tatement of Trustees' r esponsibilities, the Trustees, who are also the directors of the charity for the purpose 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 charity’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 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

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

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 .

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

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF SHAARE ZEDEK UK

The extent to which the audit was considered capable of detecting irregularities including fraud

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 and The Charities Act 2011 together with the Charities SORP (FRS102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the UK operations were, General Data Protection Regulation (GDPR), and employment legislation.

We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF SHAARE ZEDEK UK

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees 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 charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

RDP Newmans LLP

29 September 2022

Chartered Accountants Statutory Auditor

Lynwood House 373-375 Station Road Harrow Middlesex HA1 2AW

RDP Newmans LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted
Restricted Endowment
funds
funds
funds
2021
2021
2021
Notes
£
£
£
Income and endowments from:
Donations and legacies
3
1,070,545
1,039,697
-
Other trading activities
4
-
-
-
Investments
5
92
-
-
Other
6
39,413
-
-
Total income
1,110,050
1,039,697
-
Expenditure on:
Costs of r aising funds
7
231,131
-
-
Charitable activities
Payments to hospital
8
751,297
1,025,095
-
Total charitable expenditure
751,297
1,025,095
-
Other
13
24,816
-
-
Total resources expended
1,007,244
1,025,095
-
Net gains/(losses) on investments
14
11
-
-
Net movement in funds
102,817
14,602
-
Fund balances at 1 January 2021
764,291
42,728
42,465
Fund balances at 31 December
2021
867,108
57,330
42,465		 Total
2021
£
2,110,242
-
92
39,413
2,149,747
231,131
1,776,392
1,776,392
24,816
2,032,339
11
117,419
849,484
966,903		 Total
2020
£
4,492,241
712
7,322
9,682
4,509,957
219,394
4,312,281
4,312,281
17,698
4,549,373
(124)
(39,540)
889,024
849,484

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) SUMMARY INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021

All income funds
2021
£
Gross income
2,149,747
Gains/(losses) on investments
11
Total income in the reporting period
2,149,758
Total expenditure from income funds
2,032,339
Net income/(expenditure) for the year
117,419		 2020
£
4,509,957
(124)
4,509,833
4,549,373
(39,540)

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) BALANCE SHEET

AS AT 31 DECEMBER 2021

Notes
Fixed assets
Tangible assets
15
Investments
16
Current assets
Debtors
18
Cash at bank and in hand
Creditors: amounts falling due within
one year
20
Net current assets
Total assets less current liabilities
Capital funds
Endowment funds - general
22
Income funds
Restricted funds
21
Unrestricted funds
Designated funds
23
General unrestricted funds		 2021
£
11,106
970,437
981,543
(20,733)
37,606
829,502		 £
5,783
310
6,093
960,810
966,903
42,465
57,330
867,108
966,903		 2020
£
86,181
772,103
858,284
(25,176)
93,018
671,273		 £
15,977
399
16,376
833,108
849,484
42,465
42,728
764,291
849,484

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2021

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2021, although an audit has been carried out under section 144 of the Charities Act 2011. No member of the company has deposited a notice, pursuant to section 476, requiring an audit of these accounts under the requirements of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 28 September 2022

Mr Michael Sorkin Mr Alain Stechler Trustee Trustee

Company registration number 07469168

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2021

Notes
Cash flows from operating activities
Cash generated from/(absorbed by)
operations
27
Investing activities
Purchase of tangible fixed assets
Investment income received
Net cash (used in)/generated from
investing activities
Net cash used in financing activities
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Relating to:
Cash at bank and in hand
Bank overdrafts included in creditors
payable within one year		 2021
£
(2,370)
92		 £
200,609
(2,278)
-
198,331
772,103
970,434
970,437
(3)		 2020
£
(3,053)
7,322		 £
(64,528)
4,269
-
(60,259)
832,362
772,103
772,103
-

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

Charity information

Shaare Zedek UK is a private company limited by guarantee incorporated in England and Wales. The registered office is 4 Theobald Court, Theobald Street, Borehamwood, Hertfordshire, WD6 4RN, United Kingdom.

1.1 Accounting convention

The accounts have been prepared in accordance with the charity's memorandum and 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 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts 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 Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees 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 Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity 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 charity 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.

Income tax recoverable in relation to investment income or gift aid donations is recognised at the time the relevant income is receivable.

Legacy income is included in the Statement of Financial Activities when the Charity's entitlement has been established with a sufficient level of certainty, normally on receipt of the legacy or a letter confirming that it will be sent.

Grants received are accounted for as receivable as and when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. Income from charitable activities includes income received under contract .

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

Trading income is recognised as and when monies are received and stated after trade discounts .

Trading income related to events is recognised in the year the events took place.

The charity is not registered for VAT .

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 are allocated on the portion of the asset’s use.

Expenditure is recognised when a liability is incurred. Contractual arrangements and performance related grants are recognised as goods or services are supplied. Other grant payments are recognised when a constructive obligation arises that result in the payment being unavoidable.

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

Charitable activities include both the direct and support costs relating to these activities.

Governance costs include the cost of any legal advice to trustees on governance or constitutional matters, external accountancy and audit costs.

Support costs include central functions and have been allocated to the different categories of activities based on the time spent on each activity.

The charity is not registered for VAT so all expenses shown in the SOFA and notes to the accounts are shown gross (i.e. inclusive of VAT).

1.6 Tangible fixed assets

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

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

Plant and machinery 25% straight line Fixtures, fittings & equipment 10% reducing balance

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 .

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.

A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8 Impairment of fixed assets

At each reporting end date, the charity 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 ) .

1.9 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.

1.10 Financial instruments

The charity 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 the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.

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 p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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 the charity ’s contractual obligations expire or are discharged or cancelled.

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

1.11 Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets .

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 the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13 Foreign exchange

Transactions 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 at the rate of exchange ruling at the balance sheet date. All differences are taken to the statement of financial activities.

1.14 Group accounts

The financial statements present information about the charity as an individual undertaking and not about its group. The company and its subsidiary undertaking comprise a small-sized group. The company has therefore taken advantage of the exemptions provided by section 399 of the Companies Act 2006 not to prepare group accounts.

1.15 Volunteers

A substantial contribution to the activities of Shaare Zedek UK is supplied in the form of voluntary services for raising funds . The financial benefit of these non-cash donations have not been recognised in these accounts as by their nature it would be impractical to quantify in monetary terms.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Trustees 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.

Specifically, the Trustees have made judgements on the apportionment of support and governance costs across the various charitable activities (see note 9 for further details) - the basis of this apportionment has remained consistent to prior years.

In the view of the Trustees, there are no significant accounting estimates and judgements applied.

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2021
2021
£
£
Donations and gifts
262,186
1,029,697
Legacies receivable
808,359
10,000
1,070,545
1,039,697		 TotalUnrestricted
funds
2021
2020
£
£
1,291,883
253,181
818,359
968,970
2,110,242
1,222,151		 Restricted
funds
2020
£
3,224,590
45,500
3,270,090		 Total
2020
£
3,477,771
1,014,470
4,492,241

4 Other trading activities

Total Unrestricted
funds
2021 2020
£ £
Non-charitable trading income - 712
5 Investments
Unrestricted Unrestricted
funds funds
2021 2020
£ £
Interest receivable 92 7,322
6 Other
Unrestricted Unrestricted
funds funds
2021 2020
£ £
Coronavirus Job Retention Scheme grant 39,413 9,682

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

7 Costs of r aising funds

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Costs of generating donations and legacies
Advertising 39,682 38,922
Other fundraising costs 4,251 4,551
Staff costs 147,373 146,194
Depreciation and impairment 619 1,404
Support costs 39,206 27,990
Costs of generating donations and legacies 231,131 219,061
Fundraising trading: costs of goods sold
Other trading activities - 304
Staff costs - 24
Support costs - 5
Fundraising trading: costs of goods sold - 333
231,131 219,394

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

8 Charitable activities

Payments Payments
to hospital to hospital
2021 2020
£ £
Staff costs 19,980 18,961
Depreciation and impairment 619 1,404
Payments to hospital 1,696,607 4,244,962
1,717,206 4,265,327
Share of support costs (see note 9) 44,734 33,518
Share of governance costs (see note 9) 14,452 13,436
1,776,392 4,312,281
Analysis by fund
Unrestricted funds 751,297 1,046,755
Restricted funds 1,025,095 3,265,150
Endowment funds - general - 376
1,776,392 4,312,281

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

9 Support costs

Support
costs
Governance
costs
£
£
Staff costs
34,433
14,452
Impairment losses
100
-
Premises costs
32,660
-
Other costs
16,747
-
83,940
14,452
Analysed between
Fundraising
39,206
-
Trading
-
-
Charitable activities
44,734
14,452
83,940
14,452		 2021
Support
costs
Governance
costs
£
£
£
48,885
32,397
13,436
100
-
-
32,660
26,837
-
16,747
2,279
-
98,392
61,513
13,436
39,206
27,990
-
-
5
-
59,186
33,518
13,436
98,392
61,513
13,436		 2020
£
45,833
-
26,837
2,279
74,949
27,990
5
46,954
74,949

Support costs excluding staff costs which cannot be directly attributed have been apportioned equally between costs of raising funds and the charitable activity of payments to the hospital. Within support costs, other costs include telephone costs, postage costs , travel costs, computer running costs and staff training costs.

Staff costs have been apportioned on an es timated basis of the allocation of time spent on each specific activity .

10 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		 2021
£
13,200
109		 2020
£
15,230
1,189

11 Trustees

None of the Trustees (or any persons connected with them) received any remuneration, nor reimbursement of travelling expenses during the year or prior year.

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

12 Employees

The average monthly number of employees during the year was:

Administration
Fundraising
Finance
Total
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2021
Number
1
3
1
5
2021
£
195,439
15,979
4,820
216,238		 2020
Number
1
3
1
5
2020
£
191,462
14,940
4,610
211,012

The number of employees whose annual remuneration was £60,000 or more were:

2021 2020
Number Number
Between £70,000 - £79,999 1 1
13 Other
Unrestricted Unrestricted
funds funds
2021 2020
Net loss on disposal of tangible fixed assets 11,327 2,354
Audit fees 13,200 15,230
Legal and professional fees 289 114
24,816 17,698

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

14 Net gains/(losses) on investments

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Revaluation of investments 11 (124)
15 Tangible fixed assets
Plant and Fixtures, Total
machinery fittings &
equipment
£ £ £
Cost
At 1 January 2021 6,471 24,650 31,121
Additions - 2,370 2,370
Disposals - (19,751) (19,751)
At 31 December 2021 6,471 7,269 13,740
Depreciation and impairment
At 1 January 2021 4,184 10,960 15,144
Depreciation charged in the year 764 473 1,237
Eliminated in respect of disposals - (8,424) (8,424)
At 31 December 2021 4,948 3,009 7,957
Carrying amount
At 31 December 2021 1,523 4,260 5,783
At 31 December 2020 2,287 13,690 15,977

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

16 Fixed asset investments

Listed
investments
Other
investments
£
Cost or valuation
At 1 January 2021
299
100
Valuation changes
11
-
At 31 December 2021
310
100
Impairment
At 1 January 2021
-
-
Impairment losses
-
100
At 31 December 2021
-
100
Carrying amount
At 31 December 2021
310
-
At 31 December 2020
299
100
2021
Other investments comprise:
Notes
£
Investments in subsidiaries
26
-
17
Financial instruments
2021
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
310
18
Debtors
2021
Amounts falling due within one year:
£
Other debtors
10,251
Prepayments and accrued income
855
11,106		 Total
£
399
11
410
-
100
100
310
399
2020
£
100
2020
£
299
2020
£
8,361
77,820
86,181

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

19
Loans and overdrafts
Bank overdrafts
Payable within one year
20
Creditors: amounts falling due within one year
Notes
Bank overdrafts
19
Other taxation and social security
Trade creditors
Amounts owed to subsidiary undertakings
Other creditors
Accruals and deferred income		 2021
£
3
3
2021
£
3
5,279
1,382
-
869
13,200
20,733		 2020
£
-
-
2020
£
-
5,313
5,310
83
751
13,719
25,176

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

21 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at
1 January 2020
£
Bikur Cholim
Campus
7,485
Children's
Hospital
3,344
Emergency
Department
1,742
Neurosurgery
and
Neurology
Department
638
Others
19,105
Flourescent
Activated
Cell Storage
-
Neonatal
Intensive
Care Unit
5,323
Nursing
Scholarships
-
Obstetric
Department
-
Radiotherapy
Institute
-
Intensive
Care
Department
151
Robotic
Surgery
-
Cardiology
Department
-
Coronavirus
Department
-
Outpatient
Clinic
-
IVF
Research
Department
-
37,788		 Movement in funds
Incoming
resources
Resources
expended
Balance at
1 January 2021
£
£
£
680
(7,500)
665
11,581
(7,334)
7,591
374,199
(374,199)
1,742
50,000
(50,000)
638
13,307
(6,708)
25,704
-
-
-
66,893
(66,552)
5,664
77,439
(77,439)
-
153,974
(153,974)
-
181,233
(181,233)
-
35,250
(35,200)
201
1,223,581
(1,223,581)
-
3,420
(3,420)
-
1,078,533
(1,078,010)
523
-
-
-
-
-
-
3,270,090
(3,265,150)
42,728		 Movement in funds
Incoming
resources
Resources
expended
Balance at
31 December
2021
£
£
£
5,350
(2,500)
3,515
10,786
(15,054)
3,323
51,588
(50,778)
2,552
50,400
(50,400)
638
21,760
(15,662)
31,802
145,800
(145,800)
-
44,561
(42,792)
7,433
79,489
(79,489)
-
-
-
-
194,130
(194,130)
-
-
-
201
-
-
-
-
-
-
23,515
(16,172)
7,866
315,118
(315,118)
-
97,200
(97,200)
-
1,039,697
(1,025,095)
57,330

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

21 Restricted funds

(Continued)

Bikur Cholim Campus is a separate campus hospital that merged with Shaare Zedek Medical Centre in Jerusalem. The fund is dedicated to fund the general running of the hospital.

Children's Hospital was set up as a separate fund to support a new building designed specifically for Children. The work on this site began in 2008 and the Children's Hospital officially opened in August 2015 . The fund is dedicated to provide equipment and cover general running costs for the department.

T he Emergency D epartment was set up to develop and extend the existing size of the old department. The

fund is dedicated to cover running costs for the department.

The Neurosurgery and Neurology Department at the Shaare Zedek Medical Center treats a wide range of diseases involving the nervous system, with the aim of preserving and restoring brain and spine function and has a designated operating theatre which includes a new navigating system, intra-operation ultrasound and an innovative robot enabling procedures such as tumor tissue biopsy with great precision. The fund is dedicated to provide equipment and cover general running costs for the department.

Included within Others are various smaller funds which relate to various activities including CT Scanner, various pieces of equipment, Haematology Department, pending allocation, Geriatrics Department, Cardiology Department and LDA Educational Institute.

The N eonatal Intensive Care Unit (N ICU ) at the Shaare Zedek Medical Center treats infants born from week 24 of pregnancy. The complex includes 70 beds (with another 20 at the Bikur Cholim Campus), and state-of-the-art respiratory and monitoring equipment which provides precise data 24/7 on each of the babies in the unit. The fund is dedicated to provide equipment and cover general running costs for the department.

The Nursing Scholarships Fund is dedicated to provide support and train ing for student nurses.

The Obstetric Department includes the delivery rooms, the maternity wards, the High-Risk Pregnancy Unit and the Obstetric Ultrasound Unit. The fund is dedicated to provide equipment and cover general running costs for the department.

The Radiotherapy Institute is currently being built and is due for completion in 2022 . The fund is dedicated to provide a Linear Accelerator for the Radiotherapy Institute .

Our Intensive Care Unit treats the most severe urgent care cases in the hospital. 70% of cases are postsurgery while others are complex cases referred from the Internal Medicine Departments.

The Fluorescent Activated Cell Sorting, Flow Cytometry, is the laboratory modality used by a FACS machine, a versatile diagnostic tool to identify and sort cells by the use of laser equipment and fluidic/ fluorescent dyes. The FACS classifies the cells by their size, granularity and fluorescence staining. This device has become the gold standard in haematology research and is therefore a critical diagnostic tool for a growing major medical centre such as Shaare Zedek.

The Assisted Reproduction service has proven itself as a leader in developing IVF procedures for the benefit of the community. Shaare Zedek is home to an internationally-renowned centre for Medical Genetics research and has been a pioneer in the advancement of pre-gestational screening of embryos for the purpose of initiating pregnancies of foetuses free of specific genetic diseases that affect their parents and previous generations.

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

21 Restricted funds

(Continued)

Our state of the art new ICU was upgraded in 2017 the first major upgrade and renovation of this Unit since the hospital moved to its current location in 1979. The Unit is now equipped with the latest technology and care methods in the most advanced setting possible. The risk of infection is a top priority for intensive care patients. The redesigned ICU gives each patient their own largely self-sufficient room to minimise the spread of infection. Almost all of the equipment is wall or ceiling mounted, meaning the room can be kept to a higher standard of cleanliness. There are 14 patient rooms in total, almost all of which are in constant use.

Robotic surgery is a field which has developed in recent years, increasingly becoming a standard and indispensable approach to care in a variety of surgical disciplines. It allows extremely fine and complex movements in a tight space, without the need to open large cavities that can involve more complications and a longer, more painful recovery period. Appreciating that this represents the future of modern surgery, we are proud that Shaare Zedek Medical Centre, which currently sees around 35,000 surgical procedures performed each year, has been a local pioneer in introducing advanced robotic approaches to the Israeli medical community.

In terms of the outpatient clinic, out of the more than 1,000,000 patients who are treated at Shaare Zedek Medical Center each year, the vast majority are treated on an ambulatory basis in our more than 70 outpatient units and clinics. In general, the trend in modern medicine is to reduce the need for inpatient hospitalization wherever possible, as this increases costs, emotional and practical challenges for the patient and is also less desirable from a medical perspective. For all these reasons, outpatient care is the growing trend in modern hospital care and Shaare Zedek has firmly embraced this trend with increased investment in these services. The central area for the large majority of our ambulatory services is in the Margulies Outpatient Clinics which are divided between the Fourth and Fifth Floors of The Next Generation Building.

The Cardiology Department provides a comprehensive response to the gamut of cardiac and cellular diseases. Our team performs catheterization, installs stents in the coronary arteries and implants pacemakers, defibrillators and valves without open heart surgery. There is also a state-of-the-art Cardiac Imaging Institute which uses 3-D Echo, CT and MRI. We can also administer advanced treatment for congenital and structural disorders. The department stresses preventative care and accompanies patients throughout the post-heart attack rehabilitation process.

The Coronavirus Department was set up in the wake of the global Covid-19 pandemic to treat Covid-19 positive patients safely in isolation.

The trustees are satisfied that sufficient resources are held in an appropriate form to enable each fund to be applied in accordance with any restriction s.

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

22 Endowment funds

Endowment funds represent assets which must be held permanently by the charity. Income arising on the endowment funds can be used in accordance with the objects of the charity and is included as unrestricted income. Any capital gains or losses arising on the assets form part of the fund.

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Transfers Investments
Balance at		 Incoming Resources Transfers Investments Balance at
1 January 2020 resources expended gains/losses
1 January 2021		 resources expended gains/losses 31 December
2021
£ £ £ £ £
£		 £ £ £ £ £
Permanent endowments
Rayne
Endowment
Fund 42,841 - (376) - -
42,465		 - - - - 42,465
42,841 - (376) - -
42,465		 - - - - 42,465

The Rayne Endowment Fund was donated by Lord Rayne to fund an international urology conference held at Shaare Zedek Medical Centre.

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

23 Unrestricted funds

The income funds of the charity include unrestricted funds, within which designated funds have been set aside by the trustees for specific purposes:

Balance at
1 January 2020
Designated - Neo-Natal Department
16,224
Designated - Pending Allocation
-
Designated - Coronavirus Department
-
General Unrestricted Fund
792,171
808,395		 Movement in funds
Incoming
resources
Resources
expended
Balance at
1 January 2021
-
-
16,224
76,794
-
76,794
802,000
(802,000)
-
361,073
(481,971)
671,273
1,239,867
(1,283,971)
764,291		 Movement in funds
Incoming
resources
Resources
expended
Transfers
Balance at
31 December
2021
-
-
(16,224)
-
632,323
(671,511)
-
37,606
-
-
-
-
477,727
(335,722)
16,224
829,502
1,110,050
(1,007,233)
-
867,108

The N eo- N atal D epartment F und ha d been set up to allow the legacy of one of our donors to contribute to the work they had supported throughout their life. The Trustees have now decided to transfer the balance held in the fund to the General Unrestricted Fund to support the running costs of the charity.

The Pending Allocation Fund relates to a single donation which is yet to be remitted to the Shaare Zedek Medical Centre, as the trustees have not yet confirmed what the donation should be used for.

The Coronavirus Fund was set up in the wake of the global Covid-19 pandemic to treat Covid-19 positive patients safely in isolation.

The General Unrestricted Fund relates to "free reserves" after allowing for all designated funds.

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

24
Analysis of net assets between funds
Unrestricted
funds
Designated
funds
Restricted
funds
Endowment
funds
2021
2021
2021
2021
£
£
£
£
Fund balances at 31 December 2021
are represented by:
Tangible assets
5,783
-
-
-
Investments
310
-
-
-
Current assets/(liabilities)
823,409
37,606
57,330
42,465
829,502
37,606
57,330
42,465		 TotalUnrestricted
funds
Designated
funds
Restricted
funds
Endowment
funds
2021
2020
2020
2020
2020
£
£
£
£
£
5,783
15,977
-
-
-
310
399
-
-
-
960,810
654,897
93,018
42,728
42,465
966,903
671,273
93,018
42,728
42,465		 Total
2020
£
15,977
399
833,108
849,484

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

25 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2021 2020
£ £
Aggregate compensation 78,000 72,600

Transactions with related parties

Included within other creditors is an amount of £ nil (20 20 : £ 83 ) due to Sharzed Advertising Limited, a 100% owned subsidiary, which was struck off after the balance sheet date .

Aggregate donations received from related parties without conditions amounted to £ 595,956 (20 20 : £ 265,925 ) for the year.

26 Subsidiaries

The financial statements below are separate from the charity's financial statements.

Details of the charity's subsidiaries at 31 December 2021 are as follows:

Name of undertaking Registered Nature of business Class of % Held
office shares held Direct Indirect
Sharzed Advertising Limited England and Advertising Ordinary 100.00
Wales

The principal activity of the subsidiary undertaking during the year was that of advertising and promoting fund raising for Shaare Zedek UK . The subsidiary was struck off after the balance sheet date .

SHAARE ZEDEK UK (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

27
Cash generated from operations
Surplus/(deficit) for the year
Adjustments for:
Investment income recognised in statement of financial activities
Loss on disposal of tangible fixed assets
Fair value gains and losses on investments
Depreciation and impairment of tangible fixed assets and investments
Movements in working capital:
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Cash generated from/(absorbed by) operations
28
Analysis of changes in net funds		 2021
£
117,419
(92)
11,327
(11)
1,338
75,074
(4,446)
200,609		 2020
£
(39,540)
(7,322)
2,354
124
2,808
(24,138)
1,186
(64,528)

The charity had no debt during the year.