**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.
- Grants payable totalled £2,438,381 (2019 £343,985) and were made in accordance with the objects of the Foundation.
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.
- 1 -
## **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)**
- Total assets less liabilities amounted to £4,309,063 (2019 £5,082,713), represented by the accumulated balances on the restricted endowment and restricted and unrestricted income funds. The net current assets represent monies held in order to meet ongoing overheads and also funds received that have yet to be applied towards the Foundation's charitable objectives. The net assets include restricted funds of £3,698,827 - (2019 £4,703,064), which have been, or will be, remitted to the University or spent subsequent to the balance sheet date.
## **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)
- 2 -
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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and
- prepare the accounts on the going concern basis unless it is inappropriate to presume that the Foundation will continue in operation.
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:
- there is no relevant information of which the company's auditors are unaware, and
- the Governors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
- 4 -
## **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).
- In our opinion, the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 30 September 2020 and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **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:
- the Governors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- the Governors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Foundation’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
## **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.
- 5 -
## **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:
- the information given in the financial statements is inconsistent in any material respect with the Governors' report; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
## **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.
- 6 -
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 Wk. for thi8 report. or for the opinions we have
form&d.
L,, L-LP
Landau Morf•y LLP
ChArtornd A1)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 ¥Ie of Its el.blty fr)r
appointment as audltor of a coftyany und•r of 8eL*on 1212 ofthe Comparaes Act 26.
## **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.
- 8 -
## **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.
- 9 -
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|
- 11 -
## **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.
- 12 -
## **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.
- 13 -
## **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.
- 14 -
## **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|
- 15 -
## **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|
- 16 -
## **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|
- 17 -
## **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).
- 18 -
## **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.
- 19 -
## **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'.
- 20 -
## **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|
|---|---|---|
- 21 -