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2022-09-30-accounts

British Friends of the Hebrew University of Jerusalem Financial Statements Year Ended 30 September 2022

Charity registration number: 209691 Company registration number: 06350828

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BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2022

Contents
Page
Charity Reference and Administrative Details 3
Trustees’ Annual Report (Including Directors’ Report) 4-17
Independent Auditors’ Report
 18-21
Statement of Financial Activities (Including Income and Expenditure Account) 22
Balance Sheet 23
Statement of Cash Flows 24
Notes to the Financial Statements 25-45

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

REFERENCE AND ADMINISTRATION DETAILS

Y EAR ENDED 30 SEPTEMBER 2022

Charity registration number 209691
Company registration number 06350828
Trustees Jeremy Amias Appointed 05/12/2022
Jenny Arwas MBE
Alan Steven Jacobs, Chair
Denise Nicole Joseph
Isaac Kaye PhD Hon, President
Jonathan Andrew David Marks
Anthony Graham Page
Alan Henry Philipp, Hon, Treasurer
Joseph Smouha KC
Derek Bryan Spitz
Benjamin Stowe Appointed 29/09/2022
Simon Tobelem
David Mark Wernick
Chief Executive Officer Nigel Salomon
Registered office 2nd Floor Supreme House
300 Regents Park Road
London N3 2JX
Independent Auditors Haysmacintyre LLP
10 Queen Street Place
London
EC4R 1AG
Solicitor CH. Hausmann & Co.
5 De Walden Court
85 New Cavendish Street,
London W1W 6XD
Bankers Barclays Bank PLC
28 Hampstead High Street
Hampstead
London
NW3 1QB

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BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

TRUSTEES ANNUAL REPORT

YEAR ENDED 30 SEPTEMBER 2022

The Trustees present their report and the audited financial statements of the charity for the year ended 30[th] September 2022.

The financial statements have been prepared under the accounting policies set out in notes to the accounts and comply with the Charity’s governing document, the Charities Act 2011 and Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) (Second Edition, effective 1 January 2019).

Trustees of the charity

The Directors of the charitable company are its Trustees for charity law. The Trustees who have served during the year and since the year-end were as follows:

Jeremy Amias Appointed (IC) 05/12/2022 Jenny Arwas MBE (RC) Alan Steven Jacobs, Chair (RC, FAC, IC, G) Denise Nicole Joseph (FAC) Isaac Kaye PhD Hon, President (RC, G) Jonathan Andrew David Marks (G) Anthony Graham Page Alan Henry Philipp, Hon, Treasurer (RC, IC, GC, G) Joseph Smouha KC Derek Bryan Spitz Benjamin Stowe Appointed 29/09/2022 Simon Tobelem (FAC) David Mark Wernick (GC, G)

FAC = Finance and Audit Committee

G = Hebrew University Governors

GC = Grants Committee

IC = Investment Committee

RC = Remuneration Committee

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BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

TRUSTEES ANNUAL REPORT

YEAR ENDED 30 SEPTEMBER 2022

Objectives and Activities

The British Friends of the Hebrew University (BFHU) is a national charity registered in England and Wales.

The purposes of BFHU are:

  1. fundraising in support of the academic development of the Hebrew University, including research, scholarships, and capital projects

  2. promoting awareness and standing of the Hebrew University and its global impact.

  3. undertaking events and activities to generate awareness and, in turn, income for the cause; and

  4. ensuring the long-term financial, operational, and reputational sustainability of the organisation

BFHU aims to operate to the highest professional standards, especially in areas of donor care, marketing, financial management, reputation, and governance.

Achievements and performance

Charitable activities

During the year, the Charity made grants to the Hebrew University and students of £3.8m (2021 £4.2m). In addition, a small number of grants totalling £244,000 (2021 £244,000) were made to Hebrew University students continuing postgraduate studies in the UK.

Financial Report

Total income of £7.3m, including donations remitted directly to the Hebrew University, exceeded the budgeted income of £6.5m.

BFHU’s investment portfolio achieved a blended total negative net return of (11.1)% in the 12 months to 30.9.22. Historically, over a period of 10 years, the organisation has achieved a 6.5% per annum total return, which is above the annual target of 5%. This has allowed the charity to maintain a 3.5% annual distribution to the Hebrew University, supporting the objectives of the BFHU-held endowments.

Highlights of the Year – the Hebrew University of Jerusalem

Post Covid, university life returned to normal with on-campus face to face teaching restored. Travel restrictions eased, visitor numbers on campus grew rapidly, including both individuals and delegations. Academics and researchers could gradually travel again, renewing and building collaborative relationships, which had been badly impacted for over two years. The University’s leadership and faculty were also able to restart visits to the Friends organisations.

The University also saw a new peak of over 25,000 in its student body.

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TRUSTEES ANNUAL REPORT

YEAR ENDED 30 SEPTEMBER 2022

Reflecting the University's growing support for minorities, Arab students represented 14%, and Haredi (ultra-orthodox Jewish) students made up 2.4%.

A new and important measure is first-generation students (defined as those with parents whose highest level of education was non-academic) – they comprised 18% of new undergraduates. Faculty numbers grew 4.4% in 2 years to 1034.

After a three-year gap, the annual International Board of Governors gathering took place in Jerusalem with over 20 Friends Associations represented, including from Israel.

Major capital projects include:

A strategic 10-year plan continued to be developed based on 5 key principles.

Fundraising will continue to focus on seven significant themes underpinning the University’s 7-year $1bn centenary campaign which covers human health, leadership for tomorrow, a better world, internationalisation & collaboration, building capacity, hi-tech Jerusalem, and sustainable planet.

Following the signing of the Abraham Accords in September 2020, the University has developed relationships with academia from Morocco, Bahrain, and the Gulf States, such as Morocco’s Mohammed VI Polytechnic University hosting a delegation from The Hebrew University. In addition, HU started a new course ‘The Geopolitics of the UAE,’ within the Department of Islamic and Middle Eastern studies.

Highlights of the Year – the British Friends

Gradually from around May 2022 onwards events slowly moved from virtual to physical, with donors, both current and potential, starting to travel to visit campus. Both the University and BFHU have retained the use of hybrid communication tools, applying the learnings during Covid to help extend audiences and encounters. Zoom was employed and continues to be used for donor meetings with students and researchers whom they support and to expand physical audiences to international

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TRUSTEES ANNUAL REPORT

YEAR ENDED 30 SEPTEMBER 2022

participants. Several members of the University leadership also addressed BFHU Board meetings on Zoom.

The year ushered in new trustees, including Jeremy Amias bringing extensive experience from the world of finance and banking along with Benjamin Stowe. Benjamin is a graduate of the HU’s Rothberg International school and former chair of the BFHU young professionals committee. Alan Jacobs succeeded Isaac Kaye as Chair; Isaac became President, continuing his family’s support for the Hebrew University for more than sixty years. Reflecting increased involvement of board members six trustees attended the June 2022 HU international gathering in Jerusalem.

Over 30 BFHU Zoom events took place during the year with Friends’ organisations generally making available their own events to Friends globally, increasing the range of subjects and audience reach, including the following:

Fundraising

The BFHU fundraising team follows the principles of professionalism, respect, gratitude, open communication, and sensitivity to donor needs. We encourage campus visits which are generally transformative in connecting with the Hebrew University. The organisation is registered with the Fundraising Regulator and adheres to the Fundraising Code of Practice.

BFHU is a long-established charity with donor relationships that are often multi-generational. Voluntary funds are generated in several ways, including bi-annual mailed appeals and special events and major donors include estates, individuals and institutional foundations, including family trusts. The bi-annual BFHU gala dinner, postponed from 2021, took place in May 2022, attended by 160 guests, with four researchers attending from the Hebrew University.

The Hebrew University is a seven-faculty, interdisciplinary institution with multiple needs. British Friends donors have, over many years, developed their own diverse interests. Knowing and understanding donors and reconciling with the University’s preferences is key to managing donor relationships.

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TRUSTEES ANNUAL REPORT

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We are grateful to our significant donors who remained loyal and generous during the year, recognising the criticality of support for research during Covid and support for students at all levels who faced financial and personal challenges.

Donations

Current year donations, along with the distribution made from restricted endowment funds, helped to support over 500 scholarships, including, in line with the University’s priorities, to minorities such as Haredi, Arab and Ethiopian students. These scholarships play a vital role in enabling students to study at the Hebrew University who might otherwise have been unable to attend due to financial constraints, especially in the ongoing challenging economic environment. The University has also provided support for Ukrainian academics and students fleeing conflict and finding sanctuary at the Hebrew University in 2022.

Significant support comes from the UK around International Masters Scholarships in Public Health, Agricultural Sciences, and International Development Studies for students from many developing nations across the globe learning new skills and techniques to support their local communities in health, nutrition, and community development.

Research donations were targeted at most Faculties of the Hebrew University but with particular emphasis on medical science.

Ceremonies

During the fundraising year, a number of donor ceremonies took place, mainly on campus, helping to provide profile for the specific cause whilst providing financial benefit to the awardees.

Legacy campaign

Since 1998, BFHU has maintained a programme of legacy missions to the Hebrew University, providing an opportunity to see the University in action. The week-long trip helps build lifelong connections and secures a legacy commitment to the Hebrew University designated in line with the donor wishes.

Despite some ongoing Covid restrictions, a mission of 9 participants visited the Hebrew University in May 2022, enjoying a group reunion later in the year.

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TRUSTEES ANNUAL REPORT

YEAR ENDED 30 SEPTEMBER 2022

BFHU continued its series of Zoom bespoke events to our Honours Club, the name given to those who commit to a legacy in support of the Hebrew University. One event was held at the BFHU office.

Impact of charitable activities

The Hebrew University is the first Israeli institution of higher education to conduct a study to explore in detail the impact of financial aid provided to 2,000 students. The University has partnered with Social Finance Israel (SFI) to conduct a study to focus on the measurable effect of such scholarships. The study’s key findings were:

GDPR

BFHU’s donor relations and communications activities comply with the Data Protection Act 2018, General Data Protection Regulation (GDPR) and the Privacy & Electronic Communications (PECR) via mail, email and through social media and advertising. Consent is obtained where required and recorded appropriately. All information is stored securely. Rights are outlined in the Privacy Policy; changes and opting-out can be made at any time.

During the period, there were no GDPR complaints received, nor safeguarding issues reported. Procedures are in place, complying with the Charity Commission regulations and the Fundraising Regulator guidelines.

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TRUSTEES ANNUAL REPORT

YEAR ENDED 30 SEPTEMBER 2022

Strategic Risks

Risk Policy

The Trustees are responsible for overseeing risks faced by the Charity. Detailed considerations of risk are delegated to the Senior Management of the Charity. Risks are identified, assessed, and controls are established throughout the year. A formal review of the charity’s risk management processes is undertaken annually.

The Board confirms that the significant risks to which the Charity is exposed have been reviewed, reassessed, and updated. Where practicable, systems have been established that are intended to mitigate those risks.

A risk analysis table summarising the key risks is monitored by the Chief Executive and is brought to the attention of the Board on at least an annual basis. This process forms an integral part of the Charity’s annual review of its strategic plan and budget.

Human Resource risks such as loss of key staff members with localised knowledge.

Management mitigation: ensure the team is professionally managed and, motivated, competitively remunerated with annual appraisal reviews.

Data & IT Integrity risks include data protection, support and maintenance services, fire risk, and fraud.

Management mitigation: Cloud-hosted IT platforms, insured risk cover, professional IT support, multiple password protection, adherence to fire & security best practices.

Investment risks such as poor returns and foreign exchange exposure.

Management mitigation: diversified investment portfolio managed externally by two prominent international fund managers, the BFHU board investment sub-committee in place, and international benchmarking across other Hebrew University Friends.

The Trustees believe that the challenging macroeconomic outlook, including inflationary pressures, could have a negative financial effect beyond the short term. They also recognise that, although annual endowment grants are made in sterling, Hebrew University expends money mainly in Shekels. The portfolios have a high weighting in overseas equities and UK equities that generate much of their earnings overseas. This reduces some of the foreign exchange risks.

COVID-19 has had a limited impact on the global endowment portfolio because it is well-diversified. Although income may be reduced, the Trustees believe the accumulated total return is sufficient to maintain the annual 3.5% distribution to the Hebrew University, which is now fixed at the US dollar rate prevailing at 1 October 2022.

Maintain a strong reserve position to support operational needs.

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BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

TRUSTEES ANNUAL REPORT

YEAR ENDED 30 SEPTEMBER 2022

Income risks such as disproportionate reliance on key donors.

Management mitigation: focus on donor retention; tailored Zoom meetings with the Hebrew University; activities to grow the database with GDPR opt-in; attractive events, creative marketing to maintain engagement; third-party partnerships, close collaboration with the Hebrew University Division for External Relations and other Friends organisations.

Governance risks such as poor compliance due to working from home.

Management mitigation: maintain a strict routine of monthly management accounting and reporting reinforcing a culture of compliance with sound annual auditing stipulations and statutory accounts.

Reserves Policy

The Trustees are keenly aware of the need to secure the Charity’s future beyond the immediate dayto-day requirements. To continue to honour its commitments to the University, the Charity needs to have sufficient funds to absorb periodic setbacks in its ability to raise funds and to take advantage of opportunities as situations arise. The Charity management also considers it prudent that some reserves should be maintained to finance working capital requirements.

The Charity has reviewed the risk profile of income streams along with past expenditure patterns, anticipated changes and committed expenditure and the extent to which the charity can curtail or change the timing of cash outflows. The Charity has also looked at timing the cash outflows to match the timing of cash inflows. Where this is not possible, reserves needed to fund expenditure in advance of income receipts or expenditure delayed are estimated.

The charity believes that it will need reserves to cover a least 12 months’ overheads plus £150,000 to cover the cost of funding fundraising activities where the sponsorship is received after the event has taken place. Accordingly, as at 30 September 2022, the targeted free reserves position was £760,000.

The Trustees continue to maximise unrestricted income to cover operating costs but recognise that operating losses may occur in some years.

At the year-end, the charity held total funds of £34,332,446. Most of these funds are endowed or restricted and therefore do not form part of the free reserves. Excluding these funds and those funds held as tangible fixed assets, the free reserves were £1,751,054 (2021 £3,727,603).

The current level of free reserves is above the target level even after accounting for the grant commitment of $2m towards a capital project of $8m for the construction of an additional floor at the Faculty of Social Science building in 2022-23. The grant is reflected in creditors falling due within one year and over one year, see pages 38-39.

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BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

TRUSTEES ANNUAL REPORT

YEAR ENDED 30 SEPTEMBER 2022

Future priorities

Faced with a changing philanthropic environment, BFHU trustees plan to undertake a strategic review of the organisation, including purpose and priorities, a board skills audit, governance and structure, diversifying income streams, attracting next-generation supporters, engaging alumni, growing bilateral traffic (visitors to HU, faculty to the UK), expanding collaboration with Friends internationally and reviewing current positioning and messages including greater use of digital communications.

A review of the organisation’s professional structure, skills and cost-base will also take place to ensure the ability to deflect threats and take advantage of potential new opportunities, particularly those

concerning philanthropic foundations. This work will represent the most fundamental organisational review for many years.

In parallel, the organisation remains committed to consistent professional engagement with current donors and to securing new support wherever possible in line with the Hebrew University’s priorities. Co-funding with other partners, including other HU Friends, will remain an area of focus.

A more strategic approach to events, in some cases with high-profile organisational partners, will guide our efforts in promotional activity.

Encouraging Hebrew University campus visits will continue. Experience has proven how transformative this experience can be.

Where BFHU can add value and guided by the University’s priorities, efforts will continue to facilitate bilateral university collaboration with Russell Group universities.

Mindful of the many macro-economic challenges, Trustees welcome the performance of 2021/22.

Financial review

During the year under review, the Charity showed an unrestricted net deficit of £1,976,549 (2021; surplus of £827,730), leaving a retained balance on general funds of £1,751,054 as of 30th September 2022.

Income for the year amounted to £3,670,143 (2021: £4,648,738), £3,020,532 (2021: £4,124,003) of which was donated by our generous supporters and £649,611 (2021: £524,735) was generated from other activities and our investment funds. This enabled the Charity to make grants to the University and students totalling £5,560,886 (2021: £4,304,484).

The donations made directly by donors associated with BHFU to the Hebrew University are significant. To enable the readers of the accounts to appreciate the broader contribution that the Charity makes

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TRUSTEES ANNUAL REPORT

YEAR ENDED 30 SEPTEMBER 2022

to the University, the value of these donations and the corresponding donation expenditure are set out in the memorandum income and expenditure analysis. The Trustees consider this a valuable measure of the scale of funding to the HU that the charity generates.

BFHU’s Contribution to the Hebrew University of Jerusalem

Income
Note
Total income as
presented
Direct donations to
the Hebrew
University (HU)
Total income
attributable to the
BFHU by the HU
18
Expenditure
Note
Grants funding
activities as
presented
6
Direct donations to
the Hebrew
University (HU)
Total grants
attributable to the
BFHU by the HU
18		 2022
Unrestricted
funds
Restricted funds
Endowment
funds
Total
£
£
£
£
211,456
2,870,798
587,889
3,670,143
-
3,616,075
-
3,616,075
211,456
6,486,873
587,889
7,286,218
2022
Unrestricted
funds
Restricted funds
Endowment
funds
Total
£
£
£
£
-
5,560,886
-
5,560,886
-
3,616,075
-
3,616,075
-
9,176,961
-
9,176,961		 2021
Total
£
4,648,738
3,696,172
8,344,910
2021
Total
£
4,304,484
3,696,172
8,000,656

At the year end the Charity had unrestricted funds of £1.8m, restricted funds of £871k and available expendable endowment resources of £31.7m.

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TRUSTEES ANNUAL REPORT

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Structure, Governance and Management

Nature of Governing Document

The British friends has been supporting the Hebrew University since 1926 through various linked charities. The British Friends of the Hebrew University was incorporated on 22 August 2007 and is governed by its memorandum and articles of association, as amended by special resolution(s) dated 9 May 2013.

Organisational structure (Structure, Governance and Management)

The Charity is controlled by the Directors/Trustees; the full time Chief Executive Officer reports to the Trustees monthly.

The support staff are split by function, such as donor support operations, marketing and communications, finance and fundraising all reporting directly to the CEO in a flat organisational structure.

Recruitment and appointment of Trustees

Members of the Board are recruited based on their core competencies, a mix of skills, their experience in the sector and general commitment to the cause. Where possible, the Board consider that the skills of the members should provide a mix of the following:

Induction and training of Trustees

All new Board members receive a full induction including meeting with staff and other Board members as well as visiting University officials such as the President. Members of the Board are encouraged to visit the University in Israel. Trustee engagement is an ongoing process. Trustees are encouraged to attend appropriate external training events, which facilitate the understanding of their role. All new Board members are appointed on 3-year terms, with a maximum of 3 such terms following which annual terms apply. This is subject to the retirement and appointment rules within the Memorandum.

Arrangements for setting key management personnel remuneration

The pay of senior staff is reviewed annually by the remuneration committee. The review is performed using benchmarks from similar organisations and against the performance of personal objectives.

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TRUSTEES ANNUAL REPORT

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Investment policies & performance

BFHU adheres to Charity Commission guidance on ethical investments. The Investment Committee may, from time to time, where it is consistent with that advice, direct the investment managers not to make direct investments in specific companies.

The Trustees reserve the right to exclude companies that carry out activities contrary to their aims or from holding investments which might damage the Charity's reputation.

The investment portfolios are benchmarked for total return against the FTSE 100.

2021- 2022 was a challenging period for markets as Central Banks took action to control inflation by raising interest rates. Increasing interest rates led to weakness in bond markets and higher-quality growth stocks, with technology shares, especially weak.

Against this background, balanced portfolios suffered from both weaknesses in bonds and equities. Investec funds produced a negative net return (post fees) of (8.1)%, Rothschild & Co portfolio produced a negative net return of (13.61)% (post fees). By comparison, the FTSE 100 Share index produced a total return of (5.23)%.

The performance of the fund managers is kept under close review by the Investment Committee and is satisfactory considering the market conditions and portfolio exposure to high quality businesses which the fund managers believe will outperform the market over the long term.

Grant making policies

Grants are made from restricted funds and income, and, in some cases, the capital derived from endowment funds in a manner as closely aligned as possible with the original wishes of the donor. Grants are approved by a BFHU committee, the Board’s delegated authority.

The Charity makes extensive grants to the Hebrew University for buildings, equipment, research programmes and scholarships.

A sum of £60K was allocated for BFHU discretionary scholarships in 2021/22, some at the Hebrew University and some awarded to Hebrew University students extending their studies at postgraduate level in the UK. The same sum has been allocated for these purposes for 2022/23. The unused budget of £5,200 for 2021/2022 is carried forward to 2022/23.

Creditor payment policy

Creditors are paid in accordance with their payment terms.

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TRUSTEES ANNUAL REPORT

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Going concern

The Trustees have evaluated that there are no conditions or events that raise doubt about the Charity’s ability to continue as a going concern.

Relationship with donors

BFHU adheres to the Code of Fundraising Practice and is registered with the Fundraising Regulator. This shows commitment to good fundraising practices.

There were no complaints from donors during the year.

Public benefit statement

The Directors & Trustees confirm that they have complied with the requirements of Section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales. Our charitable grants, monitored through ongoing auditing and reporting contribute to the Hebrew University continuing to provide university education of a high standard, advancing knowledge and learning by teaching and contributing to world-class academic research; the Charity also supports access to minorities while encouraging the achievement of the highest academic standards, benefitting society as a whole.

Trustees' responsibilities statement

The Trustees of the BFHU (who are also Directors for the purposes of company law) are responsible for preparing the Trustees’ Annual 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 charitable company and of the incoming resources and application of resources, including the income and expenditure of the charitable company for that period. 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 charitable company and enable them to ensure that

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TRUSTEES ANNUAL REPORT

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the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Insofar as the Trustees are aware:

In preparing this report, the Trustees have taken advantage of the small companies’ exemptions provided by section 415A of the Companies Act 2006. This report was approved by the board and signed on behalf of the Board.

Alan Jacobs

………………………………………… ………………………………………… Alan Jacobs Denise Joseph Trustee Trustee

Date: 23 May 2023

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INDEPENDENT AUDITORS’ REPORT

YEAR ENDED 30 SEPTEMBER 2022

Opinion

We have audited the financial statements of British Friends of the Hebrew University of Jerusalem for the year ended 30 September 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and 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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

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INDEPENDENT AUDITORS’ REPORT

YEAR ENDED 30 SEPTEMBER 2022

Other information

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

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report (which incorporates the directors’ report).

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

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INDEPENDENT AUDITORS’ REPORT

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Responsibilities of Trustees for the financial statements

As explained more fully in the Trustees’ responsibilities statement set out on pages 16-17 the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

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:

Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to health and safety requirements, GDPR, employment law, charity law, and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Companies Act 2006, the Charities Act 2011, the Statement od Recommended Practices for Charities (SORP) and consider other factors such as payroll tax.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to improper recognition of revenue and management bias in certain accounting estimates and judgements. Audit procedures performed by the engagement team included:

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BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

INDEPENDENT AUDITORS’ REPORT

YEAR ENDED 30 SEPTEMBER 2022

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Tom Brain (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditors 10 Queen Street Place London EC4R 1AG

Date: 2 June 2023

21

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT)

YEAR ENDED 30 SEPTEMBER 2022

Note
Income and endowments from:
Donations and legacies
2
Other activities
3
Investments
4
Total income and endowments
Expenditure on:
Raising funds
5
Charitable activities
6
Total expenditure
Net losses on investments
14
Net income
Transfers between funds
18
Net movement in funds
18
Reconciliation of funds:
Total funds brought forward
18
Total funds carried forward
18		 2022
Unrestricted
funds
Restricted funds
Endowment
funds
Total
£
£
£
£
169,638
2,263,005
587,889
3,020,532
-
181,621
-
181,621
41,818
426,172
-
467,990
211,456
2,870,798
587,889
3,670,143
(348,838)
(178,779)
(191,149)
(718,765)
-
(5,560,886)
-
(5,560,886)
(348,838)
(5,739,665)
(191,149)
(6,279,651)
-
-
(4,171,302)
(4,171,302)
(137,382)
(2,868,867)
(3,774,562)
(6,780,810)
(1,839,167)
2,858,677
(1,019,509)
-
(1,976,549)
(10,190)
(4,794,071)
(6,780,810)
3,727,603
881,522
36,504,131
41,113,256
1,751,054
871,332
31,710,060
34,332,446		 2021
Total
£
4,124,003
18,723
506,012
4,648,738
(602,988)
(4,303,484)
(4,906,472)
5,593,102
5,335,368
-
5,335,368
35,777,888
41,113,256

All income and expenditure derive from continuing activities.

The Statement of Financial Activities includes all gains and losses recognised during the year.

The notes on pages 25 to 45 form part of these financial statements.

22

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM COMPANY NUMBR 06350828 BALANCE SHEET

YEAR ENDED 30 SEPTEMBER 2022

EAR ENDED 30 SEPTEMBER 2022
Note
Fixed assets
Tangible assets
13
Investments
14
Current assets
Debtors
15
Cash at the bank and in hand
Creditors: amounts falling due within one year
16
Net current assets
Total Assets less current liabilities
Creditors: amounts falling due within more than one
year
Net assets
Charity Funds
Expendable endowments
18
Restricted funds
18
Unrestricted funds
18
Total charity funds
18		 2022
£
1,237
29,865,115
29,866,352
1,110,567
5,274,887
6,385,454
(1,092,914)
5,292,540
35,158,892
(826,446)
34,332,446
31,710,060
871,332
1,751,054
34,332,446		 2021
£
11,233
36,605,140
36,616,373
1,106,621
4,319,147
5,425,768
(928,885)
4,496,883
41,113,256
-
41,113,256
36,504,131
881,522
3,727,603
41,113,256

These financial statements are prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved and authorised for issue by the Board on .

Signed on behalf of the Board of Trustees

Alan Jacobs

……………………………………… ………………………………………… Alan Jacobs Denise Joseph Trustee Trustee Date: 23 May 2023 Date: 23 May 2023

The notes on pages 25 to 45 form part of these financial statements.

23

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

STATEMENT OF CASH FLOWS

YEAR ENDED 30 SEPTEMBER 2022

Note
Cash flow from operating activities
22
Net cash flow from operating activities
Cash flow from investing activities
(Withdrawals from) additions to the
Investment Portfolio
Payments to acquire investments
Receipts from sales of investments
Interest received
Dividends received
Net cash flow from investing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at 1 October
Cash and cash equivalents at 30
September		 2022
£
(1,889,824)
(1,889,824)
2,348,536
(7,066,301)
7,095,339
31,035
436,955
2,845,564
955,740
4,319,147
5,274,887		 2021
£
2,197,119
2,197,119
1,141,204
(7,121,700)
7,129,675
34,551
471,461
1,655,191
3,852,310
466,837
4,319,147

ANALYSIS OF CHANGES IN NET DEBT

At 30
At 1 October Cash flow September
2021 £ 2022
£ £
Cash and bank 4,319,147 955,740 5,274,887

The notes on pages 25 to 45 form part of these financial statements.

24

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

1 Summary of significant accounting policies

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2022

(a) General information and basis of preparation

British Friends of the Hebrew University of Jerusalem is a company limited by guarantee and is registered with the Charity Commission (Charity Registered Number 209691) and Registrar of Companies (Company Registration Number 06350828) in England and Wales. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity. The address of the registered office is given in the Charity information on page 3 of these financial statements. The nature of the Charity’s operations and principal activities are to support research, scholarships and capital projects of the Hebrew University whilst supporting UK students who wish to study at the Hebrew University, student exchange programmes and academic collaboration with the UK’s foremost research institutions.

The Charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with 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) (Second Edition, effective 1 January 2019), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the Charity and rounded to the nearest pound.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

(b) Going concern

The financial statements have been prepared on a going concern basis and the Trustees believe that no material uncertainties exist that may cast significant doubt on the charity’s ability to continue as a going concern. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure are sufficient with the level of reserves for the Charity to be able to continue as a going concern.

(c) Funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for specific purposes.

25

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2022

The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund are set out in the notes to the financial statements.

Endowment funds represent those assets which must be held permanently by the Charity. Income arising from 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 from the investments form part of the fund. Investment management charges and legal advice relating to the fund are charged against the fund.

(d) Income recognition

All incoming resources are included in the Statement of Financial Activities (SOFA) when the Charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably, and it is probable that the income will be received. For donations to be recognised the Charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained, then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the Charity, and it is probable that they will be fulfilled. Amounts donated directly to the Hebrew University from UK donors are not included within the Financial Statements as the charity does not exert enough control over these funds.

Legacies are accounted for as incoming resources either upon receipt or where the receipt of the legacy is probable.

Receipt is probable when:

Income from fundraising events to raise funds for the Charity is recognised when received.

Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends, and interest. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably.

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

(e) Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be

26

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2022

required, and the amount of the obligation can be measured reliably. It is categorised under the following headings:

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive a grant. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the Charity.

(f) Support costs allocation

Support costs are those that assist the work of the Charity but do not directly represent charitable activities and include office costs, governance costs, and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the Charity and include project management carried out at Headquarters. Where support costs cannot be directly attributed to specific headings, they have been allocated to expenditure on raising funds and expenditure on charitable activities on a basis consistent with use of the resources, for example, allocating property costs by floor areas, or per capita staff costs by the time spent and other costs by usage. Governance costs are those incurred in connection with the running of the Charity and compliance with constitutional and statutory requirements.

The analysis of these costs is included in Note 7.

(g) Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

The land in Israel was valued on 19[th] January 2017 at £26,000. The Trustees believe that it is prudent to amortise this is as the Charity has been unable to sell it.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Office equipment 25% straight line Fixtures and fittings 20% straight line Phone system 20% straight line

27

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2022

(h) Investments

The Charity has equity investments in listed entities. Fixed asset investments are a form of basic financial instrument are initially recognised at their transaction value and subsequently measured at their fair value using the closing quoted market price or the share of the Net Asset Value of the fund (if unlisted). All unrealised gains and losses are taken to the Statement of Financial Activities as they arise.

The Statement of Financial Activities includes all net gains and losses arising on revaluation and disposals throughout the year.

(i) Debtors and creditors receivable / payable within one year

Debtors are recognised when the Charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably, and it is probable that the income will be received.

Creditors are recognised when the Charity has a present legal or constructive obligation resulting from a past event and the settlement is expected to result in an outflow of economic benefits.

(j) Leases

Rentals payable and receivable under operating leases are charged to the Statement of Financial Activities on a straight-line basis over the period of the lease.

(k) Foreign currency

Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using the closing rate.

(l) Tax

The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. It therefore does not suffer tax on income or gains applied for charitable purposes.

(m) Financial instruments

The Charity only holds basic Financial Instruments. The financial assets and financial liabilities of the Charity are as follows:

28

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2022

Debtors – trade and other debtors (including accrued income) are basic financial instruments and are debt instruments measured at amortised cost as detailed in Note 16. Prepayments are not financial instruments.

Cash at bank – is classified as a basic financial instrument and is measured at face value.

Liabilities – trade creditors, accruals and other creditors will be classified as financial instruments and are measured at amortised cost, as detailed in Note 17. Taxation and social security are not included in the financial instruments’ disclosure. Deferred income is not deemed to be a financial liability, as in the cash settlement has already taken place and there is simply an obligation to deliver charitable services rather than cash or another financial instrument.

(n) Judgements and key sources of estimation uncertainty

The judgements that have had the most significant effect on amounts recognised in the financial statements are the estimation of legacies receivable, allocation of support costs and depreciation rates. The estimates and associated assumptions are based on historical experience and other relevant factors and recent communications from the executors or their legal and professional representatives. The underlying assumptions which affect these judgements are reviewed on an ongoing basis.

2 Income from donations and legacies

Legacies
Regular giving
Total		 2022
£
700,807
2,319,725
3,020,532		 2021
£
1,259,560
2,864,443
4,124,003

Income from donations and legacies was £3,020,532 (2021 - £4,124,003), of which £587,889 (2021 - £1,166,280) was attributable to endowments, £2,263,005 (2021 - £2,879,180) was attributable to restricted, and £169,638 (2020 - £78,543) was attributable to unrestricted funds.

Events income – Conferences and similar events
Total		 2022
£
181,621
181,621		 2021
£
18,723
18,723

29

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2022

Donations from events in 2022 and 2021 were attributable to restricted funds.

4 Income from investments

Dividends - equities
Interest - fixed interest securities
Interest - deposits
Total		 2022
£
436,955
29,669
1,366
467,990		 2021
£
471,642
34,358
12
506,012

Income from investment was £467,990 (2021 - £506,012), of which £426,172 (2021 - £458,372) was attributable to restricted funds, and £41,818 (2021 - £47,640) was attributable to unrestricted funds. The BFHU portfolio at Rothschild does not have any individual Fixed Interest holding; the Fixed Income element is held via the R Wealth Management Investment Grade Bond Fund. This is a Luxemburg fund, and the income received is paid as a dividend.

5 Costs of raising funds

Support costs
Investment management costs
Total
s of expenditure on charitable activities
Grants to students
Grants to the Hebrew
University
2022 total
Grant
funding of
activities
£
244,000
5,165,370		 2022
£
527,617

191,149
718,766
Support
costs
£
-
151,516		 2021
£
429,181

173,807
602,988
Total
£
244,000
5,316,886
5,560,886
5,409,370 151,516

6 Analysis of expenditure on charitable activities

30

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2022

Grants to students
Grants to the Hebrew
University
2021 total		 244,000
-
244,000
3,928,738
130,746
4,059,484
4,172,738
130,746
4,303,484

All of the above grants to the Hebrew University were attributable to restricted funds £5,165,370 (2021 - £3,932,738) and so were the grants to students £244,000 (2021- £244,000). Total support costs of £151,516 (2021: £130,746 ) are analysed in Note 7.

The BFHU remits approximately £3.9 million each year to Hebrew University, mainly from annual gifts but also budgets just over £1 million from existing Endowment Funds. It also is involved in securing a further £3.6 million in donations that go directly to the Hebrew University.

SCHOLARSHIPS

Pears Foundation is a significant major donor funding students undertaking International Masters Scholarships in Public Health, Agricultural Sciences, and International Development Studies for students from many developing nations across the globe learning new skills and techniques to support their local communities in health, nutrition, and community development. The current cohorts across the 3 programmes include students from Ghana, Tanzania, Cameroon, India, Nepal, Haiti, Malawi, Nigeria, Burkina Faso, Ethiopia, Honduras, Myanmar, Mongolia.

. Without such scholarships, they could not attend Hebrew University. The Social Impact of these students is demonstrated in their home countries where they become active in the field of Public Health, often at policy-making level. Alumni are also in regular contact with their global peers.

Other scholarships are specifically awarded to disadvantaged students who would not be able to attend HU without such external help. They include students with disabilities, Arab Students, Charedi (Religious Jews) and those of Ethiopian backgrounds.

RESEARCH

The Carew Shaw Endowment Fund distributes £260,000 each year for a HU Distinguished Medical Faculty Award. This is normally given to encourage very bright researchers to come to HU, often after post-Doctoral work in the USA. Several of these have subsequently won European Research Council awards which recognise the contribution that their research is making internationally. This also enhances the reputation of Hebrew University.

PRIZES

The Kaye Innovation Awards for scientific innovation and the Polonsky Prizes for creativity & originality in Humanistic Disciplines recognise excellence and important research or teaching at the University. Such prizes help to enhance the reputation not only of the individual recipients but also the University as a whole.

31

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2022

Analysis of expenditure on charitable activities (continued)

LECTURES

A number of BFHU funds help to support important lectures including in the legal and medical fields facilitating HU campus visits and events in the UK.

7 Analysis of total expenditure on support costs

Support cost
Basis of
allocation
Salaries & other staff costs
Staff time
Establishment costs
Staff time
Printing, advertising, and
administration
Direct
Travelling expenses
Direct
Event costs
Direct
Governance costs
Direct
Information technology
Direct
Total 2022
Support cost
Basis of
allocation
Salaries & other staff costs
Staff time
Establishment costs
Staff time
Printing, advertising, and
administration
Direct
Travelling expenses
Direct
Event costs
Direct
Governance costs
Direct
Information technology
Direct
Total 2021		 Raising
funds
Grant-
making
Total
2022
£
£
£
241,159
103,354
344,513
43,622
36,640
80,262
(5,063)
11,522
6,459
13,948
-
13,948
178,779
-
178,779
27,298
-
27,298
27,874
-
27,874
527,617
151,516
679,133
Raising
funds
Grant-
making
Total
2021
£
£
£
236,580
101,391
337,971
74,595
5,845
80,440
61,187
23,510
84,697
2,479
-
2,479
1,325
-
1,325

29,756
-
29,756

23,259
-
23,259
429,181
130,746
559,927

In 2022 & 2021 70% of the salaries, national insurance costs, other staff costs, and establishment costs have been allocated to raising funds. In 2022 & 2021 30% of the salaries, national insurance costs, other staff costs, and establishment costs have been allocated to charitable activities. This is based on the best estimate of staff time.

32

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2022

8
Governance costs
Auditors’ remuneration
Legal fees
Other
Total
9
Analysis of grants
Grants to students at the Hebrew University
Grants to Hebrew University students who
study abroad
Grants to the Hebrew University:
Designated projects £2,455,413
Scholarships £2,661,457
Prizes £36,000
Institute for Medical Research £12,500
2022 total
Grants to students at the Hebrew University
Grants to Hebrew University students who
study abroad
Grants to the Hebrew University:
Designated projects £1,601,315
Scholarships £2,268,422
Prizes £39,971
Institute for Medical Research £19,020
2021 Total		 Grants to
institutions
£
-
-
5,165,370		 2022
£
19,200
3,365
4,733
27,298
Grants to
individuals
£
194,000
50,000
-		 2021
£
17,820
460
11,476
29,756
Total
£
194,000
50,000
5,165,370
5,165,370 244,000 5,409,370
-
-
3,928,728
4,230,541		 194,000
50,000
-		 194,000
50,000
3,928,728
4,474,541
244,000

Further details of the charitable activities supported by the grants made in the year are given in the Trustees Report.

33

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2022

Net income is stated after charging / (crediting):

2022 2021
£ £
Depreciation/Impairment of tangible fixed assets 9,996 9,996
Auditors’ remuneration - Audit fees 16,000 14,850
Finance charges payable 2,583 2,568
Operating lease rentals 74,998 74,998
Net (gains) / losses on foreign exchange (46,860) 10,922

The Trustees neither received nor waived any remuneration during the year (2021- £Nil).

The total amount of employee benefits received by Key Management Personnel is £169,407 (2021 - £164,225) and includes the current year performance bonus yet to be approved and paid, plus the employer’s National Insurance contributions at 13.8%. The Charity considers its Key Management personnel to comprise the Trustees and the Chief Executive. The Chief executive is the only full-time member of staff.

The Trustees did not have any expenses reimbursed during the year (2021- £Nil).

The average monthly number of employees during the year was as follows:

Raising funds
Charitable activities
Governance		 2022
Number
3
1
1
5		 2021
Number
3
1
1
5

Most of the staff are part time. The salary costs relate to approximately 3.4 full time staff.

34

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2022

The average number of full-time equivalent employees (including casual and part-time staff) during the year was made up as follows:

Raising funds
Charitable activities
Governance
The total staff costs and employees’ benefits were as follows:
Wages and salaries
Social security
Other staff costs		 2022
Number
2
1
1
4
2022
£
302,738
31,947
9,828
344,513		 2021
Number
2
1
1
4
2021
£

300,033

30,617

7,321
337,971

The total staff costs and employees’ benefits were as follows:

Related Parties paid no staff costs or employee benefits.

The number of employees who received total employee benefits (excluding employer pension costs) but including employer NI costs of more than £60,000 is as follows:

£60,001 - £70,000
£150,001 -
£160,001 - £170,000		 2022
Number
1

1
2		 2021
Number
1
1
2

35

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2022

13 Tangible fixed assets

Cost or valuation:
At 1 October 2021
Additions
At 30 September 2022
Depreciation/Impairment:
At 1 October 2021
Charge for the year
At 30 September 2022
Net book value:
At 30 September 2022
At 30 September 2021		 Land
Fixtures and
fittings
Computer
equipment
£
£
£
26,000
7,308
63,609
-
-
-		 Total
£
96,917
-
26,000
7,308
63,609		 96,917
14,768
7,307
63,609
9,996
-
-		 85,684
9,996
24,764
7,307
63,609		 95,680
1,236
1
-		 1,237
11,232
1
-		 11,233

Land in Israel

The Trustees have re-assessed the value of the land in Israel as negligible due to the nature and location of the plot (It is part of a much larger parcel plot of scrub land and cannot be sold separately) and therefore, we have recognised an impairment loss accordingly.

36

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2022

14 Fixed asset investments

Fair value
At 1 October 2020
Additions at cost
Disposals proceeds
Revaluations
Investment management fees
Transfers in/(out) to portfolio
At 30 September 2022
Historical Cost:
At 30 September 2022		 Listed
investments
£
36,605,140
7,066,301
(7,095,339)
(4,171,302)
(191,149)
(2,348,536)
29,865,115
25,771,704

Listed Investments at fair value comprise:

Investment Funds
UK listed investments
UK cash deposits
Fixed income
UK other investments
Overseas investments		 2022
£
2,526,044
5,814,307
399,635
5,104,797
1,928,500
14,091,832
29,865,115		 2021
£
1,919,022
8,572,698
1,071,417
5,369,946
1,470,704
18,201,353
36,605,140

The fair value of listed investments is determined by reference to bid prices from the appropriate Stock Exchange, market makers or relevant fund managers. Where fund managers publish a single price, i.e., for OEICS, the valuation has been prepared based on the published price.

The net losses on investments comprise realised gains of £1,904,923 and unrealised losses of £6,076,225.

37

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2022

15 Debtors

Trade Debtors
Legacies due
Prepayments
Gift aid recoverable
16
Creditors: amounts falling due within one year
Trade creditors
Grant commitments
Other tax and social security
Other creditors
Accruals
Creditors: amounts falling due within more than one year
Grants commitments		 2022
£
-
1,062,871
41,398
6,298
1,110,567
2022
£
27,647
826,446
7,905
33

121,155
1,092,914
2022
£
826,446
826,446		 2021
£
800
1,061,479
29,139
15,203
1,106,621
2021
£
17,579
772,877
7,977
771
129,681
928,885
2021
£
-
-

38

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2022

17 Financial commitments

The operating lease represents a premises lease signed on 18[th] October 2018 and expiring on the 30[th] September 2023.

Total future minimum lease payments under non-cancellable operating leases are as follows:

Not later than one year
Later than one and not later than five years		 2022
£
74,998
-
74,998		 2021
£
74,998
74,998
149,996

Fund descriptions

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

Designated funds comprise unrestricted funds that have been set aside by the Trustees for designated purposes. The aim and use of each designated fund are set out below.

Restricted funds relate to donated income or grants that have been specified by the donor or granter for a specific purpose.

Endowment funds

Expendable Endowment funds relate to donated income or grants that have been specified by the donor or granter for a specific purpose and where it has been specified that both income and gain and original capital are to be distributed over several years.

39

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2022 Unrestricted funds

Unrestricted
– General
Total 2022		 Balance at
1 October
2021
Income
Expenditure
Transfers
Gains /
(losses)
Balance at 30
September
2022
£
£
£
£
£
£
3,727,603
211,456
(348,838)
(1,839,167)
-
1,751,054
3,727,603
211,456
(348,838)
(1,839,167)
-
1,751,054

During the year, the following transfers were made (from)/to Unrestricted-General Funds.

Unrestricte
d – General
Total 2021		 Balance at
1 October
2020
Income
Expenditure
Transfers
Gains /
(losses)
Balance at 30
September
2021
£
£
£
£
£
£
4,555,333
126,183
(427,856)
(526,057)
-
3,727,603
4,555,333
126,183
(427,856)
(526,057)
-
3,727,603

During the year, the following transfers were made (from)/to Unrestricted-General Funds.

40

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2022

Restricted funds

estricted funds
Restricted
Expendable
Endowment
funds
19
2022 Total
Restricted
Expendable
Endowment
funds
19
2021 Total		 Balance at 1
October
2021
Income
Expenditure
Transfers
Gains /
(losses)
Balance at
30
September
2022
£
£
£
£
£
£
881,522
2,870,798
(5,739,665)
2,858,677
-
871,332
881,522
2,870,798
(5,739,665)
2,858,677
-
871,332
36,504,131
587,889
(191,149)
(1,019,509)
(4,171,302)
31,710,060
36,504,131
587,889
-
(1,019,509)
(4,171,302)
31,710,060
37,385,652
3,458,687
(5,930,814)
1,839,168
(4,171,302)
32,581,392
Balance at 1
October
2020
Income
Expenditure
Transfers
Gains /
(losses)
Balance at
30
September
2021
£
£
£
£
£
£
888,186
3,356,275
(4,304,809)
707,372
234,497
881,521
888,186
3,356,275
(4,304,809)
707,372
234,497
881,521
30,334,368
1,166,280
-
(181,315)
5,358,605
36,504,131
30,334,368
1,166,280
-
(181,315)
5,358,605
36,504,131
31,222,554 4,522,555
(4,304,809)
526,057
5,419,296
37,385,652

41

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2022

Restricted Funds

During the year, the charity received many restricted donations, all of which were applied in accordance with the donor’s wishes. Due to the large number and the immaterial nature of each individual fund, it is not practical to report on each fund activity.

At the year-end, £484k worth of donations were restricted for projects within the Hebrew University, and £387k of scholarships were awaiting confirmation of students and projects.

In total, £1,019,509 grants were made from the expendable endowment funds for 21-22.

Endowment Funds

The Trustees have agreed to spend up to a total of 3.5% of the balance of Expendable Endowment funds at the beginning of the year, £1,181k, which is less than the income and gains for the current year.

19 Expendable Endowment Funds

1. Main Fund - 43
funds
2. Polonsky Fund
3. Archie Sherman
Fund
4. Joels Fund
5. Gestetner Fund
6. BFHU Research &
Teaching
7. BFHU Scholarship &
Student Aid
8.Main fund - 41 Funds
9. Emily Erskine Fund
10. Carew Shaw Fund
11. Porjes Fund
2022 Total		 Balance at 1
October
2021
Capital
Additions
Expenditure
Transfers
Gains /
(losses)
& Fund
charges
Balance at
30
September
2022
£
£
£
£
£
£
5,690,777
287,175
-
(148,666)
(870,948)
4,958,338
138,026
-
-
(49,000)
89,026
194,098
-
-
(43,350)
(23,050)
127,698
1,357,349
-
-
(39,955)
(171,740)
1,145,655
679,278
-
-
(19,357)
(85,946)
573,975
2,210,954
-
-
(47,924)
(233,080)
1,929,950
7,113,814
250
-
(254,019)
(803,863)
6,056,182
6,502,722
5,113
-
(220,592)
(822,762)
5,464,481
3,429,540
295,351
-
(122,877)
(433,925)
3,168,089
9,088,909
-
-
(95,219)
(855,653)
8,138,037
98,662
-
-
(27,550)
(12,483)
58,629
36,504,130
587,889
-
(1,019,509)
(4,362,450)
31,710,060
42

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2022

Expendable Endowment Funds

1. Main Fund - 43
funds
2. Polonsky Fund
3. Archie Sherman
Fund
4. Joels Fund
5. Gestetner Fund
6. BFHU Research
& Teaching
7. BFHU
Scholarship &
Student Aid
8.Main fund - 41
Funds
9. Emily Erskine
Fund
10. Carew Shaw
Fund
11. Porjes Fund
2021 Total		 Balance at 1
October
2020
Capital
Additions
Expenditure
Transfers
Gains / (losses)
Balance at
30
September
2021
£
£
£
£
£
£
3,782,213
1,162,150
-
79,717
666,697
5,690,777
98,776
-
-
39,250
138,026
207,789
-
-
(43,251)
29,560
194,098
1,170,499
-
-
(39,564)
226,414
1,357,349
583,030
-
-
(16,529)
112,778
679,279
1,933,257
-
-
(28,725)
306,422
2,210,954
5,841,822
2,250
-
240.233
1,029,509
7,113,814
5,602,087
1,879
-
(184,876)
1,083,632
6,502,722
2,949,354
-
-
(90,318)
570,504
3,429,540
8,054,851
-
-
(64,563)
1,098,621
9,088,909
110,690
-
-
(33,439)
21,411
98,662
30,334,368
1,166,279
-
(181,315)
5,184,798
36,504,130

  1. The Main Expendable Endowment Fund comprises 40 funds that distribute a fixed amount annually.

  2. The Polonsky Endowment Fund is a gift of shares from the Polonsky Foundation. The income from these shares is used to fund specific grants made to the University on behalf of the foundation.

  3. The Archie Sherman Fund was established for the purposes of supporting the Centre for Transgenic Organisms at the Hebrew University, as well as the cost of generating voluntary income for the BFHU.

  4. The Joels Fund, i.e., the Jacob and Lena Memorial Foundation for Innovation in the Life and Medical Sciences, is an endowment for the establishment and support for a visiting chair, a senior lectureship for excellence and a research fund.

  5. The Gestetner Fund is being used to support the operating budget of the Harry S Truman Research Institute for the advancement of peace.

43

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2022

20 Analysis of net assets between funds – As at 30 September 2022

Tangible fixed assets
Fixed asset investments
Current assets
Current liabilities
Long term liabilities
Total 2022		 Unrestricted
funds
Restricted
funds
Expendable
Endowment
funds
Total
£
£
£
£
1,237
-
-
1,237
-
-
29,865,115
29,865,115
3,669,177
871,332
1,844,945
6,385,454

(1,092,914)
-
-
(1,092,914)
(826,446)
-
-
(826,446)
1,751,054
871,332
31,710,060 34,332,446

Analysis of net assets between funds – As at 30 September 2021

Tangible fixed assets
Fixed asset investments
Current assets
Current liabilities
Total 2021		 Unrestricted
funds
Restricted
funds
Expendable
Endowment
funds
Total
£
£
£
£
11,233
-
-
11,223
445,649
881,521
35,277,970
36,605,140
4,199,607
-
1,226,161
5,425,768
(928,885)
-
-
(928,885)
3,727,604
881,521
36,504,131
41,113,256

The total amount of donations made by the Trustees was £388,120 (2021: £302,572). One of the trustees, Anthony Graham Page is a majority shareholder and director of Tony Page Ltd which supplied catering and related services for the Gala dinner at a cost of £115,123.

There were no other related party transactions in the current or prior year, other than Trustee and Key Management Personnel transactions detailed in Note 8.

44

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2022

22 Reconciliation of net income to net cash flow from operating activities

Net income for the year
Dividends received
Interest receivable
Investment management fees
Purchase of fixed assets
Depreciation and impairment of tangible fixed assets
(Gains) / losses on investments
(Increase) / decrease in debtors
Increase / (decrease) in creditors
Net cash flow from operating activities		 2022
£
(6,780,810)
(436,955)
(31,035)
191,149
-
9,996
4,171,302
(3,946)
990,475
(1,889,824)		 2021
£
5,335,368
(471,642)
(34,270)
173,807
-
9,996
(5,593,102)
2,051,565
725,397
2,197,119

45