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2020-09-30-accounts

Charity Registration No. 276203

Company Registration No. 01376848 (England and Wales)

BEN-GURION UNIVERSITY FOUNDATION

A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL

GOVERNORS' REPORT AND ACCOUNTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020

BEN-GURION UNIVERSITY FOUNDATION A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL LEGAL AND ADMINISTRATIVE INFORMATION

Governors Harold Paisner (Chairman and
President)
Ann Berger
Martin Paisner CBE
Henry Charles (Appointed 25 February
2021)
Secretary Harold Paisner
Charity number 276203
Company number 01376848
Principal address Raymond Burton House
129 - 131 Albert Street
London
NW1 7NB
Registered office Devonshire House
1 Devonshire Street
London
W1W 5DR
Auditor Landau Morley LLP
Chartered Accountants
Landau Morley LLP
325-327 Oldfield Lane North
Greenford
Middlesex
UB6 0FX
Bankers Barclays Bank Plc
Pall Mall Corporate Group
PO Box 15165
London
SWlA 1QF
Solicitors Bryan Cave Leighton Paisner LLP
Adelaide House
London Bridge
London
EC4R 9HA

BEN-GURION UNIVERSITY FOUNDATION A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL CONTENTS

Page
Governors' report 1 - 3
Statement of Governors' responsibilities 4
Independent auditor's report 5 - 7
Statement of financial activities 8 - 9
Statement of financial position 10
Statement of cash flows 11
Notes to the financial statements 12 - 21

BEN-GURION UNIVERSITY FOUNDATION A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL GOVERNORS' REPORT (INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

The Governors present their report and audited financial statements for the year ended 30 September 2020.

The Governors deeply mourn the passing of its longstanding treasurer and member of the board of Governors, Eric Charles, a respected and devoted friend whose unfailing involvement and support, integrity and generosity of spirit will be sorely missed by so many.

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

Objectives and activities

The objectives of the Foundation are as follows:

  1. to assist in the advancement of the educational aims and activities of the Ben-Gurion University of the Negev situated in Beersheva in the State of Israel ("the University"),

  2. through, or in association with the University, to promote or assist in promoting such charitable purposes connected with the advancement of education in the State of Israel or elsewhere.

The Governors confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Charity's aims and objectives and in planning future activities and setting the grant making policy for the year.

The Foundation uses one volunteer to assist with fundraising.

Achievements and performance

During the year various donations were made to the University including contributions towards the cost of equipment for energy research as well as continuing the support for students through the provision of scholarships.

The monitoring of these projects is normally carried out in conjunction with the major donors.

Financial review

At 30 September 2020, the state of affairs of the Foundation was satisfactory.

Details of the income and expenditure for the period are shown on page 8.

Donations, legacies, contributions towards overheads and similar income receivable in the period totalled - £1,630,493 (2019 £5,182,220). This year's legacies comprised distributions of £900,000 received from the Estate of the late Manya Igel and £20,000 from the Estate of the late Michal Karny.

Investment income amounted to £64,471 - an increase of £50,035 compared with the previous year.

The costs of managing and administering the Foundation in the year decreased from £93,584 for the previous year to £9 for the year ended 30 September 2020, mainly due to the set off of gains on foreign exchange of £77,640.

The balance sheet on page 10 of the financial statements shows the financial position of the Foundation as at 30 September 2020.

BEN-GURION UNIVERSITY FOUNDATION A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL GOVERNORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

Financial review (continued)

Investment Policy

Under the Memorandum and Articles of Association, the Foundation has the power to make investments. The Governors have decided that excess working capital be invested in charities fixed interest investment bonds in addition to holding bank deposits.

Reserves

The unrestricted funds are needed to cover the costs of management, administration and fund raising without which the Foundation could not function.

Risk Management

The Governors regularly review the major risks which the Foundation faces and believe that maintaining the free reserves at the current level stated in the financial review above, combined with an annual review of the controls over key financial systems, will provide sufficient resources in the face of adverse conditions. The Governors have also examined other operational risks which they face and confirm they have established systems to mitigate any significant risks.

Plans for the future

There have been no significant events affecting the Foundation since the year end and no major future developments in the activities of the Foundation are anticipated.

Coronavirus (Covid-19)

The World Health Organization declared the Coronavirus (COVID-19) outbreak a pandemic on 11 March 2020. The pandemic, and the measures to control its human impact, have resulted in disruptions to economic activity and business operations worldwide. This could potentially have a financial impact on the charity, depending on factors such as the duration and continued spread of the outbreak and the effects on the economy overall. The outcome of all these factors is highly uncertain.

The charity has undertaken an assessment of its plans, as part of its continuity and contingency planning, and the Governors believe it is well placed financially and operationally to withstand the uncertainties ahead. At the date of approval of the financial statements, the charity is unable to determine a reliable estimate of the financial impact of COVID-19 on its financial performance and position. The Governors have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future.

Structure, governance and management

Ben-Gurion University Foundation ("the Foundation") is a company limited by guarantee, incorporated in 1978. The Foundation is also a registered charity and is governed by its Memorandum and Articles of Association and by the Charities Act 2011.

The company's Articles were amended so that in future an audit will not be required other than under the provisions of the Charities Act.

The Governors, who are also the directors for the purpose of company law, and who served during the year and at the time when the financial statements were approved were:

Harold Paisner (Chairman and President) Eric Charles (Honorary Treasurer) (Deceased 27 December 2020)

BEN-GURION UNIVERSITY FOUNDATION A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL GOVERNORS, REPORT {INCLUDING DIRECTORS. REPORT) {CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020 Ann Berger Martln Paisner CBE Henry Charles (Appointed 25 February 20211 None of the Governors has any beneficial interest in the Company. All of the Govemors are members of the company and guarantee to contribute £1 in the event of winding up. The power to appoint new Govemors is vested in the Board of Governors. The Foundation's day lo day activities are administered by thgAdministrative Director, Hannah Allen. The Foundation's objectives are met in such proportion and manner as tha Board of Govèmors shall in their absolut& discretion from time to lime determine. All the &)vernors meet regularly with the Administrative Director as requlred lo ¢x>ngider and plan fund-raising events and promotional aetivilies and any other matt6rs relating to the Foundation. The Governors meet regularly throughout the year to review the affairs of the Charity, lo lake any necessary deGisions, and if thought fit. pass any requlred fomial resolutions. Details of any related paty transaGlions with the Governors are shown In the notes lo the accounts. Assat cover for funds Note 19 on page 20 sets out an analysis of the ass&ts attributable to the various funds. Thes8 assets are sufficlenl to meet tho Foundatlon's obligations on a fijnd by fund basis. Fundraising report Funds are iaised from the publi¢ mainly from long-lerm supporters. advertising in relevant publications and on the Foundation's website. No professional fund-raiser or commercial particlpalor carried on any of Ihese activities. The Foundation was not subject lo an undertaklng to be bound by any voluntary scheme for regulating fundralslng or voluntary standard of fund-raising in respect of activates on behalf of the Foundation. No complaints were recelved in the year under review about activities by the Foundation for the purpose ol fundraising. The Foundation is conscious of protecting vulnerable people in CDnne¢tion with ils fundraising activllies and does not engage in behaviour that is an unreasonable intrusion on a person's privacy, is unreasonably p8rsistenl or places undue pressure on a person lo give money or other property. Auditor In accordance with the comp8ny's articles, a resolution proposin9 that Landau Morley LLP be r¢appointed as auditor of the company will be put to a Ceneral Meeting. This report has been prepared in accordance with the special provlslons of Part 15 of the Companie5 Act 2006 relating to small companies. The Governors. report was approved by the Board of Govemors. Henry Charles Governor Dated.. 3 1 I:}.I:

BEN-GURION UNIVERSITY FOUNDATION A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL STATEMENT OF GOVERNORS' RESPONSIBILITIES

FOR THE YEAR ENDED 30 SEPTEMBER 2020

The Governors, who are also the directors of Ben-Gurion University Foundation for the purpose of company law, are responsible for preparing the Governors' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Governors to prepare accounts for each financial year which give a true and fair view of the state of affairs of the Foundation and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these accounts, the Governors are required to:

The Governors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Foundation and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Foundation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each of the Governors is aware at the time of approving the Governors' annual report:

BEN-GURION UNIVERSITY FOUNDATION A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL INDEPENDENT AUDITOR'S REPORT

TO THE GOVERNORS OF BEN-GURION UNIVERSITY FOUNDATION

Opinion

We have audited the financial statements of Ben-Gurion University Foundation (the ‘Foundation’) for the year ended 30 September 2020 which comprise the statement of financial activities, the statement of financial position, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 Foundation 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The Governors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and 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.

BEN-GURION UNIVERSITY FOUNDATION A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE GOVERNORS OF BEN-GURION UNIVERSITY FOUNDATION

Matters on which we are required to report by exception

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

Responsibilities of Governors

As explained more fully in the statement of Governors' responsibilities, the Governors, who are also the directors of the Foundation for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Governors 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 Governors are responsible for assessing the Foundation’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 Governors either intend to liquidate the Foundation or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

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

BEN-GURION UNIVERSITY FOUNDATION A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL INDEPENDENT AUDITOR'S REPORTICONTINUED) TO THE GOVERNORS OF 8EN£URION UNIVERSITY FOUNDATION of our i•port This report is made solefy to the chaiity's govwnorn, as a body. in accordance wth part 4 of the Charilie$ (Accounts and Reports) Regulations 2008. autht V•Yxk ha8 been undertaken $0 that we nwght state to the ¢haiity's govemors th08e matters we are rewired to stste to them in an auditors. report and for no other purpose. To the fuHe8t extent permitted by law, we th not accept or assume responsibilty to anyone other than the charfty and the chariW8 govemorn as a body. for our au¢t W￿k. for thi8 report. or for the opinions we have form&d. L,, L-LP Landau Morf•y LLP ChArtornd A￿1)Untantl 8latutory Audllor Landau Morley LLP 32>327 0SdWd L￿)• North Greenford Middlesex U86 OFX Landau Modey LLP 65 elgble appolnlment a# audrtor of the Found&trJn by ¥I￿e of Its el.￿b￿lty fr)r appointment as audltor of a coftyany und•r of 8eLon 1212 ofthe Comparaes Act 2￿6.

BEN-GURION UNIVERSITY FOUNDATION A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30 SEPTEMBER 2020

Unrestricted
Restricted Endowment
funds
funds
funds
Notes
£
£
£
Income from:
Donations, legacies,
contributions towards overheads
and similar income
3
257,099
1,373,394
-
Investments
4
64,471
-
-
Total income
321,570
1,373,394
-
Expenditure on:
Raising funds
5
93
-
-
Charitable activities
6
60,666
2,377,631
-
Total expenditure
60,759
2,377,631
-
Net gains/(loss) on investments
10
(30,224)
-
-
Net movement in funds
230,587
(1,004,237)
-
Fund balances at 1 October
2019
329,649
4,703,064
50,000
Fund balances at 30
September 2020
560,236
3,698,827
50,000		 Total
2020
£
1,630,493
64,471
1,694,964
93
2,438,297
2,438,390
(30,224)
(773,650)
5,082,713
4,309,063		 Total
2019
£
5,182,220
14,436
5,196,656
18,754
418,815
437,569
3,125
4,762,212
320,501
5,082,713

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

BEN-GURION UNIVERSITY FOUNDATION A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30 SEPTEMBER 2020

Comparative Statement of Financial Activities for the year ended 30 September 2019.

Unrestricted
Restricted Endowment
funds
funds
funds
Notes
£
£
£
Income from:
Donations, legacies, contributions towards
overheads and similar income
3
136,347
5,045,873
-
Investments
4
14,436
-
-
Total income
150,783
5,045,873
-
Expenditure on:
Raising funds
5
18,754
-
-
Charitable activities
6
74,830
343,985
-
Total expenditure
93,584
343,985
-
Net (loss)/gains on investments
10
3,125
-
-
Net income/(expenditure) before transfers
60,324
4,701,888
-
Gross transfers between funds
200
(200)
-
Net movement in funds
60,524
4,701,688
-
Fund balances at 1 October 2018
269,125
1,376
50,000
Fund balances at 30 September 2019
329,649
4,703,064
50,000		 Total
2019
£
5,182,220
14,436
5,196,656
18,754
418,815
437,569
3,125
4,762,212
-
4,762,212
320,501
5,082,713

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

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

BEN-GURION UNIVERSITY FOUNDATION A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL STATEMENT OF FINANCIAL POSITION AS AT30 SEPTEMBER 2020 2020 2019 Notes Flxed assets Property, plant and equlpmenl Inv@slmenls 12 13 703 243,065 124 273.289 243,768 Current assets Trade and other receivable5 Cash al bank and in hand 273.413 15 25,493 4,101.427 10,548 4.817,417 4,126,920 161,6251 4,827,965 118,6651 Current liabllltles 16 Nel current assets 4,065.295 4.809,300 Total assets less current liab115tles 4,309,063 5,082,713 Capital funds Endowment funds Incomè funds Restricted funds Unrestricted ftjnds 17 so.000 50.000 18 3.698,827 560,236 4,703,064 329,649 4,309,063 5.082,713 The company is ents'tled lo exemption from the audlt requirement contained in section 477 of the Comp8niÈs Act 2006, for the year ended 30 September 2020, although an audit has been carried out under section 144 of the Charities Act 2011. No member of the company has deposited a notice, pursuant 10 Section 476, requiring an audit of Ih8se accounts under the requirements of the Companies Act 2006. The Governors acknowledge Ihelr responsibililles for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the slate of affairs of the company as al the end of the financial year and of its incoming resources and appli¢alion of resources, including incomè and expenditure, for the flnancial year in accordance with the requlremenls of sections 394 and 395 and which otherwise comply with the requirements of the Companies Aet 2006 rslating lo financial statements, so far as applicable to the company_ Thes8 financlal statements have been prepared In accordance with the provisions applicable to companies subject lo the small companies regime. The accounts were approved by the Govemors on......................... Harold Paisner (Chairman and Pre5ident} Governor Henry Charfes Governor Company Registratlon No. 01376848 10-

BEN-GURION UNIVERSITY FOUNDATION A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 SEPTEMBER 2020

Notes
Cash flows from operating activities
Cash (absorbed by)/generated from
operations
22
Investing activities
Purchase of property, plant and equipment
Interest received
Net cash generated from investing
activities
Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2020
£
£
(779,568)
(893)
64,471
63,578
(715,990)
4,817,417
4,101,427		 2019
£
£
4,744,279
-
14,436
14,436
4,758,715
58,702
4,817,417		 2019
£
£
4,744,279
-
14,436
14,436
4,758,715
58,702
4,817,417
4,758,715
58,702
4,817,417

BEN-GURION UNIVERSITY FOUNDATION A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020

1 Accounting policies

Charity information

Ben-Gurion University Foundation is a charitable company registered in England and Wales. The registered office is Devonshire House, 1 Devonshire Street, London W1W 5DR.

The Foundation's principal address is ORT House, 126 Albert Street, London NW1 7NE.

1.1 Accounting convention

The accounts have been prepared in accordance with the Foundation's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The Foundation is a Public Benefit Entity as defined by FRS 102.

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

The accounts have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

The World Health Organization declared the Coronavirus (COVID-19) outbreak a pandemic on 11 March 2020. The pandemic, and the measures to control its human impact, have resulted in disruptions to economic activity and business operations worldwide. This could potentially have a financial impact on the charity, depending on factors such as the duration and continued spread of the outbreak and the effects on the economy overall. The outcome of all these factors is highly uncertain. The Governors are unable to determine a reliable estimate of the financial impact of COVID-19 on its financial performance and position but at the time of approving the financial statements, the Governors have a reasonable expectation that the Foundation has adequate resources to continue in operational existence for the foreseeable future. Thus the Governors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

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

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

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

1.4 Income

Incoming resources are accounted for on a receivable basis and comprise donations, legacies, contributions towards overheads, receipts from functions, receipts under gift aid and bank interest. Where a donor has made a legally enforceable commitment to make future donations to the Foundation, these are recognised when the commitment is made.

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

BEN-GURION UNIVERSITY FOUNDATION A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

1 Accounting policies

(Continued)

1.5 Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

Where the Foundation has entered into a legally enforceable contract to make charitable grants in future periods, this expenditure is recognised in the period in which the contract is made. This is also the case where there is a constructive obligation to make such grants. The Foundation is not registered for VAT and accordingly expenditure is shown gross of irrecoverable VAT.

Support costs have been allocated to the Foundation's primary purpose of supporting the University.

1.6 Equipment

Equipment is initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

Office fittings and equipment 15% p.a. on cost. Computer Equipment Over two years on a straight line basis.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Non-current investments

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

1.8 Impairment of non-current assets

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

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand and deposits held at call with banks.

1.10 Financial instruments

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

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

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

BEN-GURION UNIVERSITY FOUNDATION A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

1 Accounting policies

(Continued)

Basic financial assets

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

Basic financial liabilities

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

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

Derecognition of financial liabilities

Financial liabilities are derecognised when the Foundation’s contractual obligations expire or are discharged or cancelled.

1.11 Employee benefits

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

1.12 Retirement benefits

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

1.13 Foreign exchange

Income and expenditure account items are translated at an average exchange rate, actual rate or period end rate, whichever is appropriate. Assets and liabilities are translated at the exchange rates ruling at the balance sheet date.

The net differences arising have been dealt with through the statement of financial activities.

1.14 Investment Income

Income distributions from investments and interest on bank deposits are both accounted for on an accruals basis.

1.15 Fund Accounting

The unrestricted income fund consists of funds to be used for the purposes of the Foundation's objectives at the discretion of its Board of Governors.

Restricted funds represent donations received which have been or will be paid to the University at the stipulation of the donor.

The restricted capital fund comprises a permanent endowment fund (see Note 17). The income generated by the funds held on this endowment is unrestricted and is therefore included as part of the unrestricted income funds for the year.

BEN-GURION UNIVERSITY FOUNDATION A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

2 Critical accounting estimates and judgements

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

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

3 Donations, legacies, contributions towards overheads and similar income

Unrestricted
Restricted
funds
funds
2020
2020
£
£
Donations and gifts
107,099
603,394
Legacies receivable
150,000
770,000
257,099
1,373,394		 Total Unrestricted
funds
2020
2019
£
£
710,493
136,347
920,000
-
1,630,493
136,347		 Restricted
funds
2019
£
345,873
4,700,000
5,045,873		 Total
2019
£
482,220
4,700,000
5,182,220

The legacies receivable of £920,000 consist of distributions of £900,000 received from the Estate of the late Manya Igel and £20,000 received from the Estate of the late Michael Karny.

4 Investments

Unrestricted Unrestricted
funds funds
2020 2019
£ £
Income from listed investments 9,694 9,774
Interest receivable 54,777 4,662
64,471 14,436

BEN-GURION UNIVERSITY FOUNDATION A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

5
Raising funds
Fundraising and publicity costs
6
Charitable activities
Staff costs
Depreciation and impairment
Insurance
Repairs and maintenance
Postage and stationery
Telephone expenses
Travel expenses
Computer running costs
Sundry expenses
Gains on foreign exchange
Rent
Bank charges
Accountancy fees
Auditor's/Independent Examiner's fee
Advertising
Grant funding of activities (see note 7)
Analysis by fund
Unrestricted funds
Restricted funds		 2020
£
93
93
2020
£
33,608
314
-
2,530
1,810
2,140
906
713
116
(77,640)
17,600
859
14,280
2,520
160
(84)
2,438,381
2,438,297
60,666
2,377,631
2,438,297		 2019
£
18,754
18,754
2019
£
33,312
75
259
2,654
1,724
2,725
283
453
412
-
17,478
659
11,220
2,490
1,086
74,830
343,985
418,815
74,830
343,985
418,815

BEN-GURION UNIVERSITY FOUNDATION A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

7 Grants payable

2020 2019
£ £
Grants to institutions:
Ben-Gurion University of the Negev 2,438,381 343,985

8 Governors

None of the Governors (or any persons connected with them) received any remuneration or benefits from the Foundation during the year.

9 Employees

Number of employees

The average monthly number of employees during the year was:

Employee(s)
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2020
Number
1
2020
£
31,212
835
1,561
33,608		 2019
Number
1
2019
£
30,303
1,494
1,515
33,312

There were no employees whose annual remuneration was £60,000 or more.

10 Net gains/(losses) on investments

Unrestricted Unrestricted
funds funds
2020 2019
£ £
Revaluation of investments (30,224) 3,125

BEN-GURION UNIVERSITY FOUNDATION A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

11 Taxation

No liability for taxation arises as the Foundation is a registered charity and is, therefore, exempt from taxation on the income arising from its normal activities.

12 Equipment

12 Equipment
Office fittings Computer Total
and equipment Equipment
£ £ £
Cost
At 1 October 2019 1,901 10,320 12,221
Additions 593 300 893
At 30 September 2020 2,494 10,620 13,114
Depreciation and impairment
At 1 October 2019 1,777 10,320 12,097
Depreciation charged in the year 164 150 314
At 30 September 2020 1,941 10,470 12,411
Carrying amount
At 30 September 2020 553 150 703
At 30 September 2019 124 - 124
13 Fixed asset investments
Listed
investments
£
Cost or valuation
At 1 October 2019 273,289
Valuation changes (30,224)
At 30 September 2020 243,065
Carrying amount
At 30 September 2020 243,065
At 30 September 2019 273,289

Fixed asset investments revalued

These investments have a historical cost of £265,000 (2019: £265,000).

BEN-GURION UNIVERSITY FOUNDATION A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

14
Financial instruments
Carrying amount of financial assets
Debt instruments measured at amortised cost
Equity instruments measured at fair value at the year end
Carrying amount of financial liabilities
Measured at amortised cost
15
Trade and other receivables
Amounts falling due within one year:
Other receivables
Prepayments and accrued income
16
Current liabilities
Other taxation and social security
Other payables
Accruals and deferred income		 2020
£
19,354
243,065
60,825
2020
£
19,354
6,139
25,493
2020
£
800
46,425
14,400
61,625		 2019
£
301
273,289
18,145
2019
£
301
10,247
10,548
2019
£
520
5,307
12,838
18,665

17 Endowment funds

Capital Funds

Balance at
1 October 2019

£
Permanent endowments
Endowment Fund
50,000
50,000		 Movement in funds
Incoming
resources
Resources
expended
Transfers
Investments
gains/losses
Balance at
30 September
2020
£
£
£
£
£
-
-
-
-
50,000
-
-
-
-
50,000		 Movement in funds
Incoming
resources
Resources
expended
Transfers
Investments
gains/losses
Balance at
30 September
2020
£
£
£
£
£
-
-
-
-
50,000
-
-
-
-
50,000
50,000

Income earned on the Fund is included under bank interest receivable as part of the unrestricted income fund.

BEN-GURION UNIVERSITY FOUNDATION A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

18 Restricted funds

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

Movement Movement in funds
Balance at Incoming Resources Balance at
1 October 2019 resources expended 30 September
2020
£ £ £ £
Funds raised for the University 4,703,064 1,373,394 (2,377,631) 3,698,827
19 Analysis of net assets between funds
Unrestricted Restricted Capital funds Total
funds funds
£ £ £ £
Fund balances at 30 September 2020 are
represented by:
Property, plant and equipment 703 - - 703
Investments 243,065 - - 243,065
Net current assets 316,468 3,698,827 50,000 4,065,295
560,236 3,698,827 50,000 4,309,063

20 Operating lease commitments

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

2020 2019
£ £
Within one year 17,600 17,600

21 Related party transactions

Mr. Eric Charles was a consultant to the Foundation's accountants, Citroen Wells ("CW") until he passed away on 27 December 2020. During the year, the Foundation received donations from CW of £5,865 (2019: £nil), and services amounting to £12,480 (2019: £11,220), inclusive of VAT.

The Eric Charles Charitable Trust, of which Mr. Eric Charles was a trustee, donated £10,000 (2019: £nil) to the Foundation during the year.

In the year ended 30 September 2019, The Geoffrey Berger Charitable Trust, of which Ms. Ann Berger is a trustee, donated £250 to the Foundation.

During the year Governors donated amounts totalling £55,650 (2019: £32,250) to the Foundation (net of gift aid), including £48,000 for 'The Jacqueline Charles Student Scholarship Endowment'.

BEN-GURION UNIVERSITY FOUNDATION A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

22
Cash generated from operations
(Deficit)/surpus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Fair value gains and losses on investments
Depreciation and impairment of property, plant and equipment
Movements in working capital:
(Increase) in trade and other receivables
Increase in trade and other payables
Cash (absorbed by)/generated from operations		 2020
£
(773,650)
(64,471)
30,224
314
(14,945)
42,960
(779,568)		 2019
£
4,762,212
(14,436)
(3,125)
75
(2,090)
1,643
4,744,279