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2023-09-30-accounts

British Friends of the Hebrew University of Jerusalem Financial Statements

Year Ended 30 September 2023

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 2023

Contents
 Page
Charity Reference and Administrative Details 3
Trustees’ Annual Report (Including Directors’ Report) 4-19
Independent Auditors’ Report
 20-23
Statement of Financial Activities (Including Income and Expenditure Account) 24
Balance Sheet 25
Statement of Cash Flows 26
Notes to the Financial Statements 27-49

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

REFERENCE AND ADMINISTRATION DETAILS

Y EAR ENDED 30 SEPTEMBER 2023

EAR ENDED 30 SEPTEMBER 2023
Charity registration number 209691
Company registration number 06350828
Trustees Jeremy Amias
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
Simon Tobelem
David Mark Wernick
Chief Executive Officer Nigel Salomon
Registered office 3rd Floor, Marlborough House
298 Regents Park Road
LondonN3 2SZ
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 2023

The Trustees present their report and the audited financial statements of the charity for the year ended 30[th] September 2023.

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 (IC) 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 (FAC, RC, IC, GC, G) Joseph Smouha KC Derek Bryan Spitz Benjamin Stowe Simon Tobelem (FAC) David Mark Wernick (GC, G)

FAC = Finance, Audit & Risk Committee G = Hebrew University Governors GC = Grants Committee IC = Investment Committee RC = Remuneration Committee

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Objectives and Activities

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

The purposes of BFHU are:

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

  2. promoting awareness and standing of the Hebrew University on the international stage. 3. undertaking events and activities to generate awareness and, in turn, funds for the Hebrew University.

  3. serving as a bridge between the Hebrew University and its UK-based supporters, leveraging understanding of the local market, cultural nuances, and regulatory frameworks, to represent the interests and intentions of both parties, enhancing mutual engagement and support.

  4. managing and distributing endowment funds in a manner that aligns with donors’ wishes. This stewardship ensures that funds continue to support the University's goals as donors intended whilst ensuring fund longevity.

  5. establishing and nurturing a vibrant HU UK-based alumni community, unlocking opportunities for supporters and the University.

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 to some students directly in the amount of £4.4m (2022: £5.6m). In addition, a small number of grants totalling £244,000 (2022: £244,000) were made to Hebrew University students continuing postgraduate studies in the UK and to UK-based students undertaking courses at the Hebrew University.

Financial Report

Income totalled £7.7m, including donations remitted directly to the Hebrew University.

BFHU’s investment portfolio achieved a blended total positive net return of 8.11% in the 12 months to 30 September 2023. Historically, over a period of 10 years, the organisation has achieved a 5.5% 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 whilst maintaining capital growth.

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Highlights of the Year – the Hebrew University of Jerusalem

In the first full academic year post-Covid, Hebrew University teaching and research operated fully face to face including for students from over 70 nationalities at the Rothberg International School. Visitor numbers increased significantly, including a broad spectrum of individual donors, groups, diplomatic and government delegations. Academics and researchers renewed their overseas travel, rebuilding collaborative relationships which had been badly impacted during the period of Covid. The University’s leadership and faculty made several visits to Friends organisations including to the UK.

In common with other universities in post-Covid Israel, student numbers reduced, in the case of the Hebrew University by 1000 to 24,000, driven mainly by the areas of nursing and education as the period of Covid is believed to have created an artificial ‘bubble’ of demand, since when Israelis have returned to the customary period of travel ahead of university, especially those taking up vocational studies.

The University remains committed to securing and retaining minority sector students: Israeli Arabs and East Jerusalemites, Jewish ultra-orthodox students, Ethiopians, those from the periphery of the country along with first-time family members in advanced education. The Hebrew University mechinot preparatory schools and the support of the Office of the Dean of Students play a vital role in this undertaking. The University intervened to offset Israeli Government funding cuts, by providing financial support from internal sources to aid these students for one year. Without University intervention numerous students might have been forced to discontinue their studies, leaving them with few viable options.

Faculty numbers remained stable at 1,034.

Following the signing of the Abraham Accords in September 2020, the University continues to deepen bilateral relationships with academia from Morocco, Bahrain, and the Gulf States, in a variety of fields including robotics, AI, biotech, water-tech and agriculture.

The 86th annual International Board of Governors gathering themed ‘Sustainable Planet’ took place in June in Jerusalem with over 22 Friends Associations represented, including from Israel.

Ongoing major capital projects include:

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

Fundraising maintained focus on seven significant themes underpinning the University’s 7-year $1bn centenary campaign: human health, leadership for tomorrow, a better world, internationalisation & collaboration, building capacity, hi-tech Jerusalem, and sustainable planet. At the time of writing, the ‘Swords of Iron’ war has led to additional needs and reassessment of university priorities (see below).

Highlights of the Year – the British Friends

Although local and international Zoom meetings and encounters continued, we saw a welcome return to face to face gatherings with over 30 individual visits to the Hebrew University during the year in addition to larger delegations such as ELNET (European Leadership Network) and the annual HU international Board of Governors gathering in Jerusalem.

Under the direction of chair, Alan Jacobs, BFHU lay leadership was further strengthened. The investment committee chair Alan Philipp was succeeded by Jeremy Amias. A new committee member Jonathan Herbert, joined. To enhance governance the Finance, Audit & Risk committee was established headed by trustee Denise Joseph, reporting to the main BFHU board. Reflecting involvement of trustees, patrons and UK governors, nine members attended the June 2023 HU international Board gathering in Jerusalem as part of a larger UK delegation.

Many events took place during the year both virtual and face to face, including with other Friends organisations enhancing the sense of the ‘HU international family’. The increasingly popular donor encounters with students and researchers provided further opportunities for much closer and more meaningful relationships, overcoming the challenges of distance.

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Fundraising

Against the backdrop of almost 100 years of fundraising the team continues to follow principles of professionalism, respect, gratitude, open communication, and sensitivity to individual donor needs. We encourage encounters with the Hebrew University, ideally campus visits which are generally transformative in connecting with Hebrew University students, researchers, and faculty. The organisation is registered with the Fundraising Regulator and adheres to the Fundraising Code of Practice.

The British Friends is a long-established charity with donor relationships that are often complex and multi-generational. Voluntary funds are generated in several ways, including biannual mailed appeals, special events, estates, and major giving from individual or institutional foundations, including family trusts.

The Hebrew University is a seven-faculty, interdisciplinary institution with diverse needs all aimed at growing academic and research excellence on an international level. British Friends donors have, over many years, developed their own diverse interests. Close engagement with donors and reconciling their interest with the University’s priorities have proved fundamental to sustaining long-term relationships.

Annual 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, Israeli Arab and East Jerusalemite, Ethiopian and ‘first generation’ students. These scholarships play a vital role in enabling students to study at the Hebrew University who might otherwise be unable to attend due to financial constraints, especially in the ongoing challenging environment.

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 similarly addressed most Faculties of the Hebrew University with particular emphasis on medical science, HUJI hi-tech and the field of sustainability.

Fundraising & Ceremonies

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

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The Charity’s gala dinner is typically a biennial event, last held in 2022 and next planned for 2025.

Legacy campaign

Since 1998, BFHU has pioneered a legacy campaign centred around missions to the Hebrew University, offering participants a firsthand experience of the university's dynamic environment. These week-long missions serve as a platform for building enduring connections and securing legacy commitments aligned with the donors' intentions.

The most recent legacy mission occurred in May 2022, amid lingering Covid restrictions, with plans for the next mission slated for October or November 2024.

BFHU continues to curate tailored events for our esteemed Honours Club, comprising individuals who have pledged a legacy in support of the Hebrew University.

Impact of charitable activities at the Hebrew University

In 2022, the Hebrew University was the first Israeli institution of higher education to conduct a study to explore its impact of financial aid provided to 2,000 students.

In 2023, the Hebrew University extended its impact analysis into the realm of academia and worked to integrate the UN’s Sustainable Development Goals (SDGs) into university courses, enriching the educational experience and fostering a deeper understanding of global challenges. It demonstrates impact beyond academia to the lives of students.

The Hebrew University prioritises engagement with Jerusalem's community and fosters civic responsibility by driving innovation through technology transfer and entrepreneurship.

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The report can be found here

https://www.storydoc.com/47495ff00abf235a33fca47f1ed40b8b/9beab53f-9482-45c2-a4dd68b56e2da19d/647f059e5d4eb9000b125484

GDPR

BFHU’s donor relations and communications activities comply with the Data Protection Act 2018, General Data Protection Regulations (GDPR) and the Privacy & Electronic Communications Regulations (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.

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 through the Finance, Audit & Risk Committee. 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 and specialised 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: Utilise cloud-hosted IT platforms, secure insured risk cover, employ professional IT support, enforce multiple password protection, adherence to fire & security best practices.

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TRUSTEES ANNUAL REPORT

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Investment risks such as poor returns and foreign exchange exposure.

Management mitigation: Maintain a diversified investment portfolio managed externally by two prominent international fund managers, and overseed by the BFHU board investment subcommittee 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.

Although income may reduce, the Trustees maintain that the accumulated total return is sufficient to sustain the annual 3.5% distribution to the Hebrew University, which is now fixed in US dollars. This arrangement between the Charity and the Hebrew University was formalised in an MoU in January 2024.

Maintain a strong reserve position to support operational needs.

Income risks such as disproportionate reliance on key donors.

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

Governance risks such as poor compliance with well-established processes and accounting standards.

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

Reserves Policy

The Trustees are keenly aware of the need to secure the Charity’s future beyond immediate day-to-day requirements and to continue to honour its commitments to the University. To achieve this 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

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TRUSTEES ANNUAL REPORT

YEAR ENDED 30 SEPTEMBER 2023

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 2023, the targeted free reserves position is £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 close of the financial year, the charity held total funds of £35,918,952 (2022: £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 stood at £1,731,142 (2022: £1,751,054).

The current level of free reserves is above the target level even after accounting for the remaining grant commitment of $1m towards a capital project of $8m relating to the construction of an additional floor at the Faculty of Social Science building which will be completed in 2023-24. Trustees are regularly in touch with the University exploring priorities to identify projects that can be funded by the BFHU.

War – 7[th] October massacre and the aftermath

The deadly terrorist incursion into Israel, mass hostage-taking and ensuing military conflict with Hamas in Gaza has impacted the entire State of Israel, across all sectors of society. After the initial shock, a mix of determination, trauma and horror set in. On the military front, mass mobilisation of reservists took place while on the home front, volunteerism in every sector swung into action.

For the Hebrew University, over 5,000 students and some faculty staff were mobilised. In common with other institutes of higher education, the start of the 2023/24 academic year was delayed. In the immediate aftermath Hebrew University leadership reacted in a number of ways to provide dedicated support to students, including all those called up for military service, students, faculty members and staff along with Israeli Arabs and East Jerusalemites; Trustees are especially proud of faculty members in medicine, social work, psychology who have contributed their considerable skills at this time and the University’s support for those working in agriculture. In addition, faculty members are providing dedicated support for reservists and displaced families.

A global fund-raising campaign ‘We Are One’ involving all Friends organisations, including the British Friends, has raised over $5.5m designated to provide financial support for student reservists, enhanced studies support and trauma counselling. BFHU raised more than $200,000 from generous and concerned donors wishing to address immediate University needs resulting

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TRUSTEES ANNUAL REPORT

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from the tragic events of 7th October 2023 and the longer-term sustainability of Israel’s foremost centre of advanced learning.

The University’s in memoriam page includes over 30 names – students, and alumni who have fallen on the battlefield or have been murdered by terrorists – may the memory of each and every one be a blessing (z’’l)

The Hebrew University finally re-opened on 31 December 2023 adopting a revised teaching timetable which will extend into July, and with many protocols in place to accommodate a new reality designed to ensure harmony and rebuild inter-community trust.

Future priorities

Philanthropists have many demands on their generosity, especially humanitarian. Nonetheless, the British Friends envisages ongoing challenges for the Hebrew University and will rigorously focus on ensuring mainstream fundraising for core research and scholarships, along with special projects resulting from the war, that might require funding from time to time.

The Charity encourages visits to the University when the situation is safe and will also work to help build the University’s reputation and academic collaboration with leading UK institutions.

Faced with a changing philanthropic environment, BFHU trustees, with the support of an external consultant, met and undertook a strategic review of the organisation. This included 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 also take place to ensure the ability to deflect threats and take advantage of potential new opportunities, particularly those concerning philanthropic foundations. This work, which is now complete, represents the most fundamental organisational review for many years.

As an output, a 3-year organisational development plan was created with 9 workstreams which is now being implemented.

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. New resource was hired to help diversify income streams into charitable foundations and family offices, enhance digital marketing and establish a UK Hebrew University alumni community.

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

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

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

Mindful of the many macro-economic and other challenges, Trustees welcome the performance of 2022/23.

Financial review

During the year under review, the Charity showed an unrestricted net deficit of £19,911 (2022: deficit of (£1,976,549), leaving a retained balance on general funds of £1,731,142 as of 30th September 2023 (2022: £1,751,053).

Total income for the year amounted to £4,520,780 (2022: £3,670,143), £3,920,978 (2022: £3,020,532) of which was donated by our generous supporters and £599,802 (2022: £649,611) was generated from other activities and our investment funds. The Charity made grants to the University and students totalling £4,389,196 (2022: £5,560,886).

During the year the organisation successfully moved office; and despite the disruption, business continuity was maintained. The new, smaller but more modern facility in the same office park, benefits from lower annual operating costs with savings of approximately £100k over 5 years. The relocation incurred one-off expenditure totalling £60,000 which included legal costs and dilapidations payments.

The donations made directly by donors associated with BHFU to the Hebrew University are significant and are independently audited. To enable the readers of the accounts to appreciate the broader contribution that the Charity makes to the University, the value of these donations and the corresponding donation expenditure are set out in the memorandum of income and expenditure analysis. The Trustees consider this a valuable measure of the scale of funding to the HU that the charity generates.

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TRUSTEES ANNUAL REPORT

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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		 2023
Unrestricted
funds
Restricted funds
Endowment
funds
Total
£
£
£
£
470,868
3,586,557
463,355
4,520,780
-
3,196,484
-
3,196,484
470,868
6,783,041
463,355
7,717,264
2023
Unrestricted
funds
Restricted funds
Endowment
funds
Total
£
£
£
£
-
4,389,196
-
4,389,196
-
3,196,484
-
3,196,484
-
7,585,680
-
7,585,680		 2022
Total
£
3,670,143
3,616,075
7,286,218
2022
Total
£
5,560,886
3,616,075
9,176,961

At the year-end the Charity had unrestricted funds of £1.8m, restricted funds of £1.1m and available expendable endowment resources of £33.1m.

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Structure, Governance and Management

Nature of Governing Document

The British Friends have 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 considers 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, subsequent terms of office are of one year duration. 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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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 and other relevant indexes.

Portfolios made steady progress in 2022-23 with fears about the ingrained nature of inflation continuing to impact on bond markets and assets that produce a high or fixed level of income. Equities fared better having suffered in the previous year and with parts of the market, particularly within US equities, benefitting from strong advances in artificial intelligence.

Against the background balanced portfolios generally rose with Investec funds producing a total net return (after fees) of 5.1%, Rothschild & Co (after fees) of 11.1%

By comparison, the FTSE 100 Share index produced a total return of 10.36%.

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.

The cash balances were reduced by £3 million and transferred to Investec. The cash was previously de-invested from Rothschild & Co and reallocated to Investec to equalize funds at the fund managers.

Investec was requested to reorganise the portfolio on a global basis, resulting in increased activity and transactions. This included moving equity holdings out of pooled funds and into direct holdings in the US and Europe, as well as transitioning to a global equity investment approach.

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.

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A sum of £60K was allocated for BFHU discretionary scholarships in 2022/23, 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 2023/24. The unused budget of £29,400 for 2022/2023 is carried forward to 2023/24.

Creditor payment policy

Creditors are paid in accordance with their payment terms.

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:

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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 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 Denise Joseph Trustee Trustee

Date:

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INDEPENDENT AUDITORS’ REPORT

YEAR ENDED 30 SEPTEMBER 2023

Opinion

We have audited the financial statements of British Friends of the Hebrew University of Jerusalem for the year ended 30 September 2023 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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BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

INDEPENDENT AUDITORS’ REPORT

YEAR ENDED 30 SEPTEMBER 2023

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:

21

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

INDEPENDENT AUDITORS’ REPORT

YEAR ENDED 30 SEPTEMBER 2023

Responsibilities of Trustees for the financial statements

As explained more fully in the Trustees’ responsibilities statement set out on pages 18-19 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 non-compliance 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 of Recommended Practice 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:

22

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

INDEPENDENT AUDITORS’ REPORT

YEAR ENDED 30 SEPTEMBER 2023

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: 24 May 2024

23

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT)

YEAR ENDED 30 SEPTEMBER 2023

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 gains/(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		 2023
Unrestricted
funds
Restricted funds
Endowment
funds
Total
£
£
£
£
422,454
3,035,169
463,355
3,920,978
-
80,658
-
80,658
48,414
470,730
-
519,144
470,868
3,586,557
463,355
4,520,780
(463,176)
(32,772)
(182,059)
(678,007)
-
(4,389,196)
-
(4,389,196)
(463,176)
(4,421,968)
(182,059)
(5,067,203)
-
-
2,132,930
2,132,930
7,692
(835,411)
2,414,226
1,586,507
(27,603)
1,037,521
(1,009,918)
-
(19,911)
202,110
1,404,308
1,586,507
1,751,053
871,332
31,710,060
34,332,445
1,731,142
1,073,442
33,114,368
35,918,952		 2022
Total
£
3,020,532
181,621
467,990
3,670,143
(718,765)
(5,560,886)
(6,279,651)
(4,171,302)
(6,780,810)
-
(6,780,810)
41,113,256
34,332,446

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 27 to 49 form part of these financial statements.

24

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM COMPANY NUMBER 06350828

BALANCE SHEET

YEAR ENDED 30 SEPTEMBER 2023

EAR ENDED 30 SEPTEMBER 2023
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 after more than one
year
Net assets
Charity Funds
Expendable endowments
18
Restricted funds
18
Unrestricted funds
18
Total charity funds		 2023
£
3
34,651,736
34,651,739
1,211,389
1,140,112
2,351,501
(257,842)
2,093,659
36,745,398
(826,446)
35,918,952
33,114,368
1,073,442
1,731,142
35,918,952		 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

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 Denise Joseph Trustee Trustee Date: 20 May 2024 Date: 20 May 2024

The notes on pages 27 to 49 form part of these financial statements.

25

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

STATEMENT OF CASH FLOWS

YEAR ENDED 30 SEPTEMBER 2023

Cash flow from operating activities
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
NALYSIS OF CHANGES IN NET FUNDS
Cash and bank		 2023
Note
£
22
(1,818,169)

(1,818,169)

(1,971,528)

(21,202,815)

20,338,594

72,429
446,715
(2,316,605)


(4,134,774)
5,274,887
1,140,113

At 1 October
2022
£
Cash flow
£
5,274,887
(4,134,774)		 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
At 30
September
2023
£
1,140,113


ANALYSIS OF CHANGES IN NET FUNDS

The notes on pages 27 to 49 form part of these financial statements.

26

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

1 Summary of significant accounting policies

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2023

(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.

27

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2023

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.

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:

• Confirmation has been received from the representatives of the estate(s) that probate has been granted.

• The executors have established that there are enough assets in the estate to pay the legacy; and

• All the conditions attached to the legacy have been fulfilled or are within the charity’s control.

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.

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BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2023

(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 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.

29

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2023

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

(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.

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BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2023

(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:

Listed investments – Listed investments are held at fair value.

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		 2023
£
782,138
3,138,840
3,920,978		 2022
£
700,807
2,319,725
3,020,532

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BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2023

Income from donations and legacies was £3,920,978 (2022: £3,020,532), of which £463,355 (2022: £587,889) was attributable to endowments, £3,035,169 (2022: £2,263,005) was attributable to restricted, and £422,454 (2022: £169,838) was attributable to unrestricted funds.

Events income – Conferences and similar events
Total		 2023
£
80,658
80,658		 2022
£
181,621
181,621

Donations from events in 2023 and 2022 were attributable to restricted funds.

Dividends - equities
Interest - fixed interest securities
Interest - deposits
Total		 2023
£
446,715
50,936
21,493
519,144		 2022
£
436,955
29,669
1,366
467,990

Income from investments was £519,144 (2022: £467,990), of which £470,730 (2022: £426,172) was attributable to restricted funds, and £48,414 (2022: £41,818) 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.

Support costs
Investment management costs
Total		 2023
£
495,618

182,059
678,007		 2022
£
527,617
191,149
718,766

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BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2023

6 Analysis of expenditure on charitable activities

Grants to students
Grants to the Hebrew
University
2023 total
Grants to students
Grants to the Hebrew
University
2022 total		 Grant funding of
activities
Support
costs
Total
£
£
£
244,000
-
244,000
3,955,337
189,859
4,145,196
4,199,337
189,859
4,389,196
Grant funding of
activities
Support
costs
Total
£
£
£
244,000
-
244,000
5,165,370
151,516
5,316,886
5,409,370
151,516
5,560,886

All the above grants to the Hebrew University were attributable to restricted funds £3,955,337 (2022: £5,165,370) and so were the grants to students £244,000 (2022: £244,000). Total support costs of £189,859 (2022: £151,516 ) are analysed in Note 7.

The BFHU remits approximately £3.9m each year to Hebrew University, mainly from annual gifts but also budgets just over £1m from existing Endowment Funds. It was also involved in securing a further £3.2m (2022: £3.6m) in donations that go directly to the Hebrew University.

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 2023		 Raising
funds
Grant-
making
Total
2023
£
£
£
256,225
109,811
366,036
86,505
44,131
130,636
31,875
35,917
67,792
18,850
-
18,850
32,772
-
32,772
41,683
-
41,683
28,038
-
28,038
495,948
189,859
685,807

33

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2023

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		 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

In 2023 & 2022 70% of the salaries, national insurance costs, other staff costs, and establishment costs have been allocated to raising funds. In 2023 & 2022 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.

8 Governance costs

overnance costs
Auditors’ remuneration
Legal fees
Other
Total		 2023
£
23,040

11,145
7,498
41,683		 2022
£

19,200
3,365
4,733
27,298

34

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2023

9 Analysis of grants

nalysis of grants
Grants to students at the Hebrew University
Grants to Hebrew University students who
study abroad
Grants to the Hebrew University:
Designated projects £1,350,444
Scholarships £2,509,370
Prizes £54,000
Institute for Medical Research £41,523
2023 total
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
institutions
Grants to
individuals
Total
£
£
£
-
194,000
194,000
-
50,000
50,000
3,955,338
-
3,955,338
3,955,338
244,000
4,199,338
-
194,000
194,000
-
50,000
50,000
5,165,370
-
5,165,370
5,165,370
244,000
5,409,370

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

35

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

.

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2023

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 most continents of the world. 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 (Israeli Arab and East Jerusalemite), Charedi (Religious Jews) and those of Ethiopian backgrounds.

Research

The Carew Shaw Endowment Fund distributed £280,000 in 22/23 (2022 £265,000) 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.

Lectures

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

10 Net income for the year

Net income is stated after charging / (crediting):

2023 2022
£ £
Depreciation/Impairment of tangible fixed assets 1,234 9,996
Auditors’ remuneration - Audit fees 19,200 16,000
Finance charges payable 3,765 2,583
Operating lease rentals 92,990 74,998
Net (gains) / losses on foreign exchange 21,798 (46,860)

36

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2023

11 Trustees' and key management personnel remuneration and expenses

The Trustees neither received nor waived any remuneration during the year (2022: £Nil).

The total amount of employee benefits received by Key Management Personnel is £169,291 (2022: £169,407) and includes the current year performance bonus approved on 20[th] December 2023, plus the employer’s National Insurance contributions at 13.8% and accrued. 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 (2022: £Nil).

12 Staff costs and employee benefits

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

Raising funds
Charitable activities
Governance		 2023
Number
3
2
1
6		 2022
Number
3
1
1
5

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		 2023
Number
2
1
1
4		 2022
Number
2
1
1
4

37

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2023

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

Wages and salaries
Social security
Other staff costs		 2023
£
324,280
31,173
10,583
366,036		 2022
£
302,738
31,947
9,828
344,513

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
£160,001 - £170,000		 2023
Number
1
1
2		 2022
Number
1
1
2

38

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2023

13 Tangible fixed assets

Cost or valuation:
At 1 October 2022
Additions
At 30 September 2023
Depreciation/Impairment:
At 1 October 2022
Charge for the year
At 30 September 2023
Net book value:
At 30 September 2023
At 30 September 2022		 Land
Fixtures and
fittings
Computer
equipment
£
£
£
26,000
7,308
63,609
-
-
-		 Total
£
96,917
-
26,000
7,308
63,609		 96,917
24,764
7,307
63,609
1,234
-
-		 95,680
1,234
25,998
7,307
63,609		 96,914
2
1
-		 3
1,236
1
-		 1,237

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.

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39
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BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2023

14 Fixed asset investments

Fair value
At 1 October 2022
Additions at cost
Disposals proceeds
Revaluations
Investment management fees
At 30 September 2023
Historical Cost:
At 30 September 2023
Listed Investments at fair value comprise:
Investment Funds
UK listed investments
UK cash deposits
Fixed income
UK other investments
Overseas investments		 2023
£
2,183,109
3,528,467
1,059,117
4,788,458
1,848,696
20,426,926
33,834,773		 Listed
investments
£
29,865,115
23,174,344
(20,338,594)
2,132,930
(182,059)
34,651,736
30,008,061
2022
£
2,526,044
5,814,307
399,635
5,104,797
1,928,500
14,091,832
29,865,115

40

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2023

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.

15 Debtors

Trade Debtors
Legacies due
Prepayments
Gift aid recoverable
reditors: amounts falling due within one year
Trade creditors
Grant commitments
Other tax and social security
Other creditors
Accruals		 2023
£
9,698
1,171,273
26,547
3,871
1,211,389
2023
£
21,758
102,372
7,738
-
125,974
257,842		 2022
£
-
1,062,871
41,398
6,298
1,110,567
2022
£
27,647
826,446
7,905
33
121,155
1,092,914

16 Creditors: amounts falling due within one year

41

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2023

Creditors: amounts falling due after more than one year

reditors: amounts falling due after more than one year
Grants commitments 2023
£
826,446
826,446		 2022
£
826,446
826,446

17 Financial commitments

The operating lease represents a premises lease signed on 19[th] July 2023 and expiring on the 18[th] July 2028.

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		 2023
£
39,516
149,831
189,347		 2022
£
74,998
-
74,998

18 Fund reconciliation

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 granted for a specific purpose.

Endowment funds

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

42

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2023

Unrestricted funds

nrestricted funds
Unrestricted
– General
Total 2023
Unrestricted
– General
Total 2022		 Balance at
1 October
2022
Income
Expenditure
Transfers
Gains /
(losses)
Balance at 30
September
2023
£
£
£
£
£
£
1,751,053
470,868
(463,176)
(27,603)
-
1,731,142
1,751,053
470,868
(463,176)
(27,603)
-
1,731,142
Balance at
1 October
2021
Income
Expenditure
Transfers
Gains /
(losses)
Balance at 30
September
2022
£
£
£
£
£
£
3,727,603
211,456
(348,838)
(1,839,168)
-
1,751,053
3,727,603
211,456
(348,838)
(1,839,168)
-
1,751,053

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

Restricted funds

estricted funds
Restricted Balance at 1
October
2022
Income
Expenditure
Transfers
Gains /
(losses)
Balance at
30
September
2023
£
£
£
£
£
£
871,332
3,586,557
(4,421,968)
1,037,521
-
1.073,442
871,332
3,586,557
(4,421,968)
1,037,521
-
1,073,442

43

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2023

Expendable
Endowment
funds
19
2023 Total
Restricted
Expendable
Endowment
funds
19
2022 Total		 31,710,060
463,355
(182,059)
(1,009,918)
2,132,932
33,114,368
31,710,060
463,355
-
(1,009,918)
2,132,932
33,114,368
32,581,492
4,049,912
(4,604,027)
27,603
2,132,932
34,187,810
Balance at 1
October
2020
Income
Expenditure
Transfers
Gains /
(losses)
Balance at
30
September
2021
£
£
£
£
£
£
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
37,385,653 3,458,687
(5,930,814)
1,839,168
(4,171,302)
32,581,392

Restricted Funds

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

At the year-end, the charity held £757k (2022: £484k) worth of donations for restricted projects within the Hebrew University, and £316k (2022: £387k) for scholarships Both were awaiting confirmation of students and projects.

In total, £1,009,918 grants were made from the expendable endowment funds for the year (2022 £1,019,509.

44

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2023

Endowment Funds

The Trustees have authorised a disbursement totalling £1,114K from the endowment funds, which includes 3.5% of the primary balance of the Expendable Endowment funds at the start of the year; fixed grants from other funds, such as the Carew Shaw Endowment and additionally, £3k annually from smaller funds, typically valued under £100,000 enabling a gradual reduction in their balances. The endowment funds have experienced a growth rate of 6% over the past year. Any financial surplus is allocated to cover management fees and help counteract the effects of inflation.

19 Expendable Endowment Funds

1. Main Fund - 38 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
2023 Total		 Balance at 1
October
2022
Capital
Additions
Expenditure
Transfers
Gains / (losses)
& Fund
charges
Balance at
30
September
2023
£
£
£
£
£
£
4,958,338
35,450
-
(354,162)
563,465
5,203,091
89,026
-
526
27,250
116,802
127,698
1
-
(68,860)
4,646
63,485
1,145,655
-
-
(43,760)
113,943
1,215,838
573,975
-
-
(21,923)
57,086
609,138
1,929,949
-
-
(20,638)
50,084
1,959,395
6,056,182
250
-
(134,586)
85,308
6,007,155
5,464,481
5,384
-
(197,817)
543,481
5,815,530
3,168,089
422,270
-
(118,454)
315,089
3,786,994
8,138,037
-
-
(50,070)
184,687
8,373,654
58,629
-
-
(175)
5,831
64,285
31,710,060
463,355
-
(1,009,918)
1,950,871
33,114,368

45

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2023

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
10. Carew Shaw 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
1,357,350
-
-
(39,955)
(171,740)
1,145,655
679,278
-
-
(19,357)
(85,946)
573,975
2,210,953
-
-
(47,924)
(223,080)
1,939,949
7,113,814
250
-
(254,019)
(803,863)
6,056,182
6,502,722
5,113
-
(220,592)
(822,762)
5,464,481
9,088,909
-
-
(95,219)
(855,653)
8,138,037
36,504,131
587,889
-
(1,019,509)
(4,352,450)
31,710,060

  1. The Main Expendable Endowment Fund comprises 38 individual funds that distribute a fixed amount annually. These distributions serve various purposes aligned with the charitable objectives of the organisation.

  2. The Polonsky Endowment Fund is a gift of shares from the Polonsky Foundation. This fund generates income used specifically to fund grants made to the University on behalf of the foundation. The grants serve designated purposes in line with the foundation's philanthropic mission.

  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 utilised to support the operating budget of the Harry S Truman Research Institute for the advancement of peace.

46

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2023

6-7 The small endowment funds have been amalgamated into larger pools of Research and Teaching and Scholarship endowment funds to enhance flexibility in supporting the University’s research and scholarship initiatives. The distributions made from these funds are under the discretion of the University.

  1. The main variable distribution endowment Fund comprises 41 individual funds and sends variable sums to the University, supporting diverse needs.

  2. The Emily Erskine Fund was created to establish a Research Foundation in Physics or Mathematics fostering advanced study and innovation.

  3. The Carew Shaw Fund was established to fund a Distinguished Faculty Award in medicine and to fund scholarships preferably within the Faculty of Medicine, in memory of Edward Carew Shaw.

  4. The Porjes Fund was established for supporting the general charitable purposes of the Friends, with a priority on promoting the ongoing legacies campaign.

20 Analysis of net assets between funds – As at 30 September 2023

Tangible fixed assets
Fixed asset investments
Current assets
Current / non-current liabilities
Total 2023		 Unrestricted
funds
Restricted
funds
Expendable
Endowment
funds
Total
£
£
£
£
3
-
-
3
1,537,368
-
33,114,368
34,651,736
1,278,059
1,073,442
-
2,351,501
(1,084,288)
-
-
(1,084,288)
1,731,142
1,073,442
33,114,368
35,918,952

47

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2023

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

Tangible fixed assets
Fixed asset investments
Current assets
Current / non-current liabilities
Total 2022		 Unrestricted
funds
Restricted
funds
Expendable
Endowment
funds
Total
£
£
£
£
1,236
-
-
1,236
-
-
29,865,116
29,865,116
3,669,178
871,332
1,844,944
6,385,454
(1,919,360)
-
-
(1,919,360)
1,751,054
871,332
31,710,060
34,332,446

21 Related party transactions

Other than Trustee and Key Management Personnel transactions detailed in Note 8.

The total amount of donations made by the Trustees was £339,067 (2022: £393,570). 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 in 2022. There were no other related party transactions in the current or prior year.

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

Net income for the year
Dividends received
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		 2023
£
1,586,507

(446,715)
1,234
(2,132,930)
(100,822)
(835,072)
(1,818,169)		 2022
£
(6,780,810)
(436,955)
9,996
4,171,302
(3,946)
990,475
(1,889,824)

48

BRITISH FRIENDS OF THE HEBREW UNIVERSITY OF JERUSALEM

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2023

23 Post balance sheet events

The war in Gaza, which commenced after October 7, 2023, may affect our fundraising efforts for the Hebrew University. There is a possibility that donors will redirect their contributions to address other urgent needs within Israel. This shift could require us to utilise our general reserves to support University operations, which have experienced financial disruptions, in part due to a late start in the opening of the academic year.

49