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Weizmann Uk Annual Accounts Final

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  • 1. The Weizmann Institute Foundation Company Limited by Guarantee Trustees’ Annual Report & Accounts 30 September 2009 Company Registration No. 483123 Charity Registration No. 232666
  • 2. THE WEIZMANN INSTITUTE FOUNDATION (“the Foundation”) (Company Limited by Guarantee) REPORT OF THE TRUSTEES’ FOR THE YEAR ENDED 30 SEPTEMBER 2009 Contents Advisers 02 Trustees’ Report 03-14 Auditors’ Report 15-16 Statement of Financial Activities 17 Summary Income and Expenditure Account 18 Statement of Total Recognised Gains and Losses 18 Balance Sheet 19 Cash Flow Statement 20 Notes to the financial statements 21-35 -1-
  • 3. THE WEIZMANN INSTITUTE FOUNDATION (“the Foundation”) (Company Limited by Guarantee) REPORT OF THE TRUSTEES’ FOR THE YEAR ENDED 30 SEPTEMBER 2009 Advisers Investment Managers Bankers Rothschild Private Management Limited Bank Leumi (UK) plc 1 King William Street 20 Stratford Place London EC4N 7AR London W1C 1BG HSBC plc W-GEM 90 Baker Street 110 East 42nd Street London W1M 2AX Suite 13101 New York Accountants NY10017 JS2 Limited USA One Crown Square Church Street East Auditors Woking, Surrey PricewaterhouseCoopers LLP GU21 6HR 1 Embankment Place London WC2N 6RH Registered Office Weizmann UK Solicitors 126 Albert Street Berwin Leighton Paisner LLP London Adelaide House NW1 7NE London Bridge London EC4R 9HA -2-
  • 4. THE WEIZMANN INSTITUTE FOUNDATION (“the Foundation”) (Company Limited by Guarantee) REPORT OF THE TRUSTEES’ FOR THE YEAR ENDED 30 SEPTEMBER 2009 The Board of Trustees (being the directors of the Foundation), presents its report and financial statements for the year ended 30 September 2009. The report and the financial statements have been produced in accordance with the provisions of the SORP – Accounting and Reporting by Charities – issued in February 2005. General Information “The Foundation” is a company limited by guarantee (registration number 483123), which was incorporated on 8 June 1950. The Foundation’s constitution and principal regulations are set out in its Memorandum and Articles of Association. The Foundation is a registered charity (registration number 232666). The registered office of the Foundation is 126 Albert Street, London NW1 7NE. The Foundation operates under the name of Weizmann UK. The Foundation’s charitable objectives include providing financial and material assistance, encouragement and support to and for pure and applied scientific research and related activities at the Weizmann Institute of Science in Rehovot, Israel (“the Institute”). Lord Mitchell, Chairman & Sheridan Gould, Executive Director Our Mission Weizmann UK’s mission is to communicate We deliver public benefit through our events the work of the Weizmann Institute’s and education programmes, which provide scientists, to encourage support for the unique access to inspirational scientists and Institute’s work, and to promote collaboration cutting-edge research to the wider UK public. between the Institute and UK universities. The scientific breakthroughs made at the Weizmann Institute in Rehovot, Israel, are Although our primary goal is to raise for the benefit of humanity. funds, Weizmann UK aims to communicate the Institute’s scientific discoveries and The Trustees confirm that they have breakthroughs to its UK friends, supporters complied with the duty in section 4 of the and the public. We also actively promote Charities Act 2006 to have due regard to greater scientific collaboration between the Charity Commission’s general guidance the Weizmann Institute and leading UK on public benefit. scientific institutions. -3-
  • 5. THE WEIZMANN INSTITUTE FOUNDATION (“the Foundation”) (Company Limited by Guarantee) REPORT OF THE TRUSTEES’ FOR THE YEAR ENDED 30 SEPTEMBER 2009 “ Scientific breakthroughs are the lifeline of future generations. The quality of the research being conducted at the Weizmann Institute of Science in Israel is recognised worldwide.The co-operation between Israeli scientists and their colleagues in the UK builds the foundations for advances that will serve humanity. Shimon Peres ” President of the State of Israel Review of the year This has been an exciting year for Weizmann UK, as we continued to develop our Making Connections programme. This dynamic programme lies at the heart of Weizmann UK’s mission. We are making connections between Israel and the UK; establishing networks across frontiers, beyond politics, through our support of the Institute’s launch of its first ever grant-giving The funded projects include: programme in the UK, and establishing an Brain Substrates of Memory Conformity: Annual Scientific Symposium between Prof. Yadin Dudai, Weizmann Institute & Institute Scientists and their UK colleagues. Prof. Raymond Dolan and Dr Tali Sharot, University College London. Making Connections Grant Programme Launched Probing the Mechanism of Collagen Degradation: Prof. Irit Sagi, Weizmann Institute The Making Connections grants are & Dr Robert Visse, Imperial College London. awarded by the Institute to research projects which unite researchers with their Self-Assembly of Surface-Confirmed counterparts at UK Universities. The first Functional Materials: Prof. Milko van der grants were made in March 2009. These Boom, Weizmann Institute & Dr Jonathan grants have been possible due to Weizmann Nitschke, Cambridge University. UK’s fundraising efforts, most notably The study of Cell-Membrane Structures our Gala Fundraising Dinner that was held & Dynamics: Prof. Benny Shilo, Weizmann in June 2008 at the Science Museum. Institute & Prof. Buzz Baum, University The Institute received 29 applications, College London. many more than had been initially anticipated; Foundations of Dark Energy Research: 10 projects were shortlisted, and 5 were Prof. Avishay Gal-Yam, Weizmann Institute finally chosen to receive funding. These & Dr Mark Sullivan, Oxford University. include work on areas as diverse as the neurological science behind ‘false memory Each team of scientists will receive $100,000 syndrome,’ and the astrophysics behind the over 2 years, split between Institute Scientists phenomenon of Dark Energy. and their UK colleagues. The Institute plans to open a second call for proposals in 2009-10. -4-
  • 6. THE WEIZMANN INSTITUTE FOUNDATION (“the Foundation”) (Company Limited by Guarantee) REPORT OF THE TRUSTEES’ FOR THE YEAR ENDED 30 SEPTEMBER 2009 Alternative Energy panel discussion at the 2009 Bessie Lawrence ISSI students Royal Geographical Society Making Connections Educational Programmes Scientific Symposium A key component of Weizmann UK’s Through our educational activities we Making Connections initiative is the have brought young people from diverse organisation of an annual scientific meeting faiths and backgrounds into contact with between Weizmann Institute scientists and inspirational scientists from the Weizmann their UK colleagues. Our 2009 Making Institute. In association with the UK’s Connections symposium focused on the Zionist Federation and other UK Academic important topic of Alternative Energy and Friends of Israeli Universities, Weizmann UK was entitled ‘Light Energy for a Brighter participated in a day of Science event that Future.’ It was over-subscribed with scientists took place in March. This two day event participating from all over Europe who was held at the Museum of Science in work in the area of renewable and alternative Manchester and London’s Science Museum energy. The Symposium was co-chaired in Kensington. Professor Eilam Gross of the by Professor David Cahen, director of the Weizmann Institute’s department of Particle Alternative Sustainable Energy Research Physics, gave a stunning presentation about Initiative (AERI) at the Weizmann Institute his work on the Large Hadron Collider at of Science, Israel, and Professor James CERN to audiences of awed schoolchildren Barber FRS, the Ernst Chain Professor of in both London and Manchester. Biochemistry at Imperial College London. Our International Summer Science School, Over two stimulating days there were known as the Bessie Lawrence programme presentations from scientists whose innovative allowed 11 children from year 13 to travel research has the potential to revolutionise to Israel to take part in a prestigious residential the way we consume and generate energy. summer camp, undertaking lab research The concluding event was a panel discussion with world-leading scientists and undertaking open to the public, which several hundred field trips throughout Israel. For many UK people struggled through torrential rain to schoolchildren, Weizmann UK provides contact attend. No doubt this was because of the with, and a route into, professional science. panel members, who included Professor John Beddington, the government’s chief scientific adviser, and Lord Hunt, the Minister of State for Sustainable Development and Energy Innovation, and Jonathan Leake, Science Editor of The Sunday Times. -5-
  • 7. THE WEIZMANN INSTITUTE FOUNDATION (“the Foundation”) (Company Limited by Guarantee) REPORT OF THE TRUSTEES’ FOR THE YEAR ENDED 30 SEPTEMBER 2009 X-Ray structures of the two Ribosomal Subunits from Eubacteria Weizmann UK & The Weizmann Institute of Science Celebrations for the 60th anniversary of The astounding news that broke at the end the Weizmann Institute kicked off in style this of our financial year was the awarding of the year with a delegation from Weizmann UK 2009 Nobel Prize in Chemistry to Weizmann attending a gala programme in Paris for Institute Scientist Professor Ada Yonath for international friends who gathered to show her work on the ribosome, which has led to their support. This was a glittering programme the development of advanced anti-biotics. She of scientific presentations and gala events. is the fourth woman ever to win the chemistry Among the many dignitaries was Baroness prize, and the first Israeli woman scientist to Susan Greenfield who spoke at a prestigious be recognised by this prestigious award. seminar at the Pasteur Institute. It was a huge Prof. Yonath’s research is driven by curiosity source of pride for the delegates from and ambition to better understand the world Weizmann UK to join the Institutes’ global and our place within it. This research aims family of friends and supporters in celebrating high: to understand the ribosome - one of this important milestone. the most complicated “machines” of the In the following pages you will read about biological system. just a handful of the ground-breaking The award is especially meaningful given scientific achievements which have taken that Prof. Yonath’s research has been place at the Institute this year, which significantly funded for more than 20 years Weizmann UK has been actively supporting by American philanthropist Mrs Helen Kimmel, through our fundraising endeavour. One of together with her late husband, Martin. the highlights for the Institute has been The special friendship developed between receiving the Israel Presidents and Prime Prof. Yonath and Mrs Kimmel over the years Ministers Memorial Prize. This was awarded perfectly symbolizes the Weizmann partnership in recognition of their excellent work in between science and philanthropy. This has recruiting a record number of post-doctoral been a consistent message for Weizmann UK scientists back to Israel, a phenomenon since its inception on 8 June 1950. which has been labelled ‘brain gain.’ These scientists will shape not only the work of the Institute, but the course of science as a whole. We are delighted that several of these young scientists have been supported by Weizmann UK donors. -6-
  • 8. THE WEIZMANN INSTITUTE FOUNDATION (“the Foundation”) (Company Limited by Guarantee) REPORT OF THE TRUSTEES’ FOR THE YEAR ENDED 30 SEPTEMBER 2009 Weizmann UK’s overall objectives for 2009 & beyond The Foundation remains committed to the goal of its founders, namely to increase support for and awareness of the outstanding research and accomplishments of the Institute’s scientists, in Israel. GOVERNANCE Strategic Goals Activities & Achievements Plans 2009-2010 To ensure existing Trustees We monitored developments To monitor trends in charity remain actively involved. in charity governance and governance and ensure we ensured we continued to remain compliant with legal comply with all requirements. requirements. Trustees have been actively To appoint a new Chairman involved with events and at the end of Lord Mitchell’s fundraising efforts. tenure. Board meetings have been well-attended and productive. COMMUNICATIONS & PUBLIC RELATIONS To continue to assess the Several newsletters have been Consider the possibility of effectiveness of our website produced online, allowing our commissioning more flexible and online marketing. supporters to feel connected and ‘branded’ e-templates. to the Institute’s achievements and to Weizmann UK’s events and education programme. To continue to market Both our Symposium and We’ll continue to market our Making Connections our Public lecture were over- the Symposium and the programme. subscribed events, which Gala evening online, we succeeded in marketing targeting a younger audience primarily online. of potential supporters. To continue to promote our We also gained some press To continue to ensure we widen educational activities to as coverage for the Symposium, the network of participating wide an audience as possible. raising awareness of the schools and students. scientific achievements at the Institute and enforcing our message that Weizmann scientists are world leaders. We secured some coverage for our Bessie Lawrence programme which featured pictures and quotes from the students as they participated in the programme. -7-
  • 9. THE WEIZMANN INSTITUTE FOUNDATION (“the Foundation”) (Company Limited by Guarantee) REPORT OF THE TRUSTEES’ FOR THE YEAR ENDED 30 SEPTEMBER 2009 FUNDRAISING Strategic Goals Activities & Achievements Plans 2009-2010 To increase funding for We organised a 2-day Next year we plan to academic collaboration scientific Symposium on hold a third Symposium between leading UK alternative energies as part on Astrophysics, in academic institutions and of our Making Connections collaboration with University the Institute. programme, which was in College London, and to partnership with Imperial organise a second fundraising College London. Gala evening. Our ongoing goal is to The concluding event was a We are also planning an increase our donor base Public Lecture attended by event with the University and continue to strengthen several hundred people which of Manchester for late 2009. relationships with existing introduced us to new potential major donors. donors and raised the Weizmann UK profile. Several of our high-value To develop our major donors donors joined us in Paris for a with further exclusive events. Gala Evening in celebration of the Institute’s 60th anniversary. A record number of VIP To continue to promote visits visits to the Institute were to the Institute to our major coordinated for key prospects donors and prospects. and existing major donors. We’ve built on our programme To continue our programme of business lunches and of business breakfasts, breakfasts for major donors lectures and missions for and prospects, holding small targeted groups. several throughout the year. To continue to encourage We have received several To further improve on our smaller donations via our online donations this year e-mail Communications online website. and are now able to link tools in order to connect directly to our ‘Giving’ page with a younger audience via our website. and maximise the potential for web donations. EDUCATION PROGRAMMES Strategic Goals Activities & Achievements Plans 2009-2010 To continue to foster closer A group of scientists We are pro-actively building collaboration with UK specialising in Alternative on relationships funded scientists and the Institute Energies at Imperial College by the Making Connections in Israel. visited the Institute in programme. January. This visit has led to collaboration between the two academic institutions. To continue to promote The Bessie Lawrence To encourage all participants the range of educational Programme sent 9 UK to promote the scheme on programmes offered at the students to participate in the their return to the new Sixth Institute to a UK audience. 2009 Programme. Formers. Dulwich School sent another We are marketing the scheme team to this year’s Physics more widely and hope that Tournament. other schools will participate in 2010. -8-
  • 10. THE WEIZMANN INSTITUTE FOUNDATION (“the Foundation”) (Company Limited by Guarantee) REPORT OF THE TRUSTEES’ FOR THE YEAR ENDED 30 SEPTEMBER 2009 Finally, we are delighted to report that, despite global financial turmoil, the continued commitment and generosity of our UK supporters has enabled us to meet our fundraising targets this year. We have succeeded in keeping our office running costs to the minimum and been fortunate in securing sponsorship for all of our public events. Weizmann UK’s professional team at the end of 2009 comprised of Ms Sheridan Gould, Executive Director, Ms Tamar Levinsohn-Araneta, Donor Relations & Event Manager, Ms Zila Ornstein, Executive Assistant to the Director, and Ms Jacqueline Wright, part-time Communications Manager. A snapshot of just a few Weizmann Institute achievements Discoveries made by scientists at the Institute have hit the headlines several times in the last year. The Weizmann Institute’s scientists focus on basic research driven by curiosity rather than by commerce. Here are just a few of the many achievements realised at the Institute this year: Making DNA Computers ‘Logical’ Bio molecular computers, made of DNA and other molecules, are so small that a trillion fit in a drop of water. Weizmann Institute scientists have found a way to make these The answer was encoded in a flash of green microscopic devices 'user friendly,' even light. Some of the strands were equipped with while performing complex computations a naturally glowing fluorescent molecule bound Tom Ran and Shai Kaplan, research students to a second protein which keeps the light in the lab of Prof. Ehud Shapiro – who is covered. A specialized enzyme, attracted to funded by the UK Dorset Foundation, have the site of the correct answer, removed the succeeded in using the DNA computers to “cover” and let the light shine. The tiny water effectively answer yes or no questions using drops containing the bio molecular data-bases strands of DNA designed to give off a green were able to answer very intricate queries, light corresponding to “yes.” and they lit up in a combination of colours representing the complex answers. When fed a rule – “all men are mortal” – and a fact – “Socrates is a man” – the Besides the tantalizing possibility that such computer answered the question “Is Socrates biology-based devices could one day be Mortal?” correctly. The team went on to injected into the body – a sort of “doctor in set up more complicated queries involving a cell” locating disease and preventing its multiple rules and facts, and the DNA spread – bio molecular computers could computing devices were able to deduce conceivably perform millions of calculations the correct answers every time. in parallel. -9-
  • 11. THE WEIZMANN INSTITUTE FOUNDATION (“the Foundation”) (Company Limited by Guarantee) REPORT OF THE TRUSTEES’ FOR THE YEAR ENDED 30 SEPTEMBER 2009 A Unique Approach for Splitting Water into Hydrogen and Oxygen The design of efficient systems for splitting water into hydrogen and oxygen is among the most important challenges facing science today, underpinning the long-term potential of hydrogen as a clean, sustainable fuel. Now, a unique approach developed by Prof. David Milstein and colleagues in the Weizmann Institute’s Organic Chemistry Department provides important steps in overcoming this challenge. Why do some Cancer The new approach devised by the Weizmann Cells Survive? team is divided into a sequence of reactions, What separates the few cancer cells that mediated by a unique ingredient – a special survive chemotherapy from those that don’t? metal complex that Milstein’s team designed The answer to this question could prevent in previous studies. The team found that, upon cancers from recurring. Research students mixing this complex with water, the bonds Ariel Cohen, Naama Geva-Zatorsky and Eran between the hydrogen and oxygen atoms break, Eden in the Institute’s Molecular Cell Biology with one hydrogen atom binding to its organic Department searched for survival anomalies part, while the remaining hydrogen and oxygen in over 1000 different proteins. atoms (OH group) bind to its metal centre. The team’s efforts have produced a This modified version of the complex provides comprehensive library of images and data the basis for the next stage of the process: on cancer cell proteins, a virtual goldmine the “heat stage.” When the water solution is of ready material for further cancer research. heated to 100°C, hydrogen gas is released They also succeeded in pinpointing two from the complex – a potential source of clean proteins that seem to play a role in cancer fuel – and another OH group is added to the cell survival. metal centre. “But the most interesting part is the third ‘light stage,’” says Milstein. The researchers found that around five “When we exposed this third complex to light percent of proteins act unpredictably, even at room temperature, not only was oxygen when the cells and drug exposure were gas produced, but the metal complex also identical. The scientists called these proteins reverted back to its original state, which could ‘bimodal,’ as they have the potential to act be recycled for use in further reactions.” in two different ways. These results are even more remarkable The team then asked whether any of the because further experiments indicate that the bimodal proteins they had identified were two OH groups join together to form hydrogen those that occasionally promote cell survival. peroxide (H2O2), which quickly breaks up into They found two molecules that seem to fit the oxygen and water. “Because hydrogen bill. One of them, known by the letters DDX5, peroxide is considered a relatively unstable is a multitasking protein that, among other molecule, scientists have always disregarded things, plays a role in initiating the production this step, deeming it implausible; but we have of other proteins. The other, RFC1, also plays shown otherwise,” says Milstein. For their next varied roles, including directing the repair of study, Milstein’s team plans to combine these damaged DNA. When the researchers blocked stages to create an efficient catalytic system, the production of these proteins in the cancer bringing those in the field of alternative energy cells, the drug became much more efficient at an important step closer to realising this wiping out the growth. important goal. -10-
  • 12. THE WEIZMANN INSTITUTE FOUNDATION (“the Foundation”) (Company Limited by Guarantee) REPORT OF THE TRUSTEES’ FOR THE YEAR ENDED 30 SEPTEMBER 2009 The world needs our research: we need your support Over the years the Weizmann Institute has grown with the country and has been the site of a number of milestones in Israeli science. Institute scientists were pioneers in the field of cancer research. Others planned and built the country’s first electronic computer, one of the first in the world. Another group founded the first nuclear physics department and built a particle accelerator next door. They were the first to establish a company for transferring knowledge from academia to industry – named Yeda, Hebrew for knowledge – and they initiated the founding of a science- based industrial park near the Institute. Here are just some of the Institute’s major achievements: ■ Copaxone® and Rebif ® two FDA approved ■ Pioneered the use of amniotic fluid for multiple sclerosis drugs were developed antenatal diagnosis, leading to the clinical based on Weizmann research. MS affects application of amniocentesis; 2.5 million people worldwide; ■ Discovered the structure of AChE (a brain ■ Weizmann scientists developed the first enzyme). Their research is helping pave the successful vaccine for Type I (insulin way for the design of anti-Alzheimer’s drugs; dependent) diabetes. The vaccine is ■ Developed the Smartcard, used globally currently in clinical trials and plans call in IT security and Satellite TV. for it to be marketed worldwide; As with all the breakthroughs at the Weizmann Institute, these world-changing, life-saving and life-enhancing discoveries were made possible by one thing: philanthropy. We are particularly grateful to our many commited UK donors whose support has been vital in ensuring that Weizmann UK is able to provide funding to help the Weizmann Institute carry out its important research. -11-
  • 13. THE WEIZMANN INSTITUTE FOUNDATION (“the Foundation”) (Company Limited by Guarantee) REPORT OF THE TRUSTEES’ FOR THE YEAR ENDED 30 SEPTEMBER 2009 Financial Review The financial statements for the year ended During the year the Investment Committee 30 September 2009 show net outgoing has been reviewing the Foundation’s resources for the year of £101,022 (2008: investment policy. net incoming £423,200). The net movement Over the 12 months to 30th September, in funds for the year amounted to an increase W-GEM has performed reasonably given of £1,591,053 (2008: decrease of £386,977) the turmoil in markets with a rise of about after accounting for net investment and 1% against a rise in its policy benchmark exchange gains of £1,692,075 (2008: losses of about 6% and a fall of 6% in the S&P. of £810,177). During the year grants totalling W-GEM is well diversified across managers £2,522,744 (2008: £1,502,330) were made and asset classes. Its policy benchmark is to the Institute. currently 40% long equities, 30% marketable The Weizmann Trading Company Ltd. alternatives, 18% fixed income, 2% cash did not trade during the period. and 10% private strategies. The Board of Trustees has also resolved Reserves that the majority of the Foundation’s non- At 30 September 2009 the Charity held endowed funds (with both unrestricted and unrestricted reserves of £4,825,939 restricted purposes) should continue to be (2008: £4,507,736). Including £123,303 invested in the UK. The Investment Committee as a designated fund towards the UK established a prudent investment policy Weizmann Scientific Programme comprising a mix of quoted UK equities, fixed (see Note 11) and £2,000,000 to cover income bonds and cash (approved by the one year's operating costs of the charity Board of Trustees) and has instructed that the and one year's budgeted grant support. Investment Manager follows the guidelines set The balance is held to provide a steady by the Investment Committee. The reports unrestricted income stream for the Charity. produced by the Investment Manager indicate The policy is reviewed annually. that the Foundation’s UK Funds performed broadly in line with the relevant equity and Grants for Scientific Research bond benchmark indicators during the The Foundation makes grants to the Institute 12 months to 30th September, outperforming based on the current needs of the Institute the benchmark in 2009 after underperforming together with the availability of funds and the in the 4th quarter of 2008. requests of donors. The Foundation has Charity Commission Investment Policy approval to adopt the use of total return investment powers in relation to its permanent All investments held by the Foundation endowment investments by an order granted have been acquired in accordance with the on 30 March 2006 as varied by a further order powers available to the Board of Trustees. made on 15 August 2006. The power permits There are no specific restrictions on the the Trustees to invest the portfolio to maximise investment powers available to the Board total return and to apply an appropriate portion of Trustees pursuant to its Memorandum of the unapplied total return to income each of Association. year. Until the power is exercised to transfer The Board of Trustees has delegated a portion of unapplied total return to income investment monitoring responsibility to a (as disclosed in the fund transfers, note 10) sub-committee comprising the Chairman, the unapplied total return remains invested as Vice Chairman, Jeremy Smouha and part of the permanent endowment. the Honorary Secretary (“the Investment Committee”). -12-
  • 14. THE WEIZMANN INSTITUTE FOUNDATION (“the Foundation”) (Company Limited by Guarantee) REPORT OF THE TRUSTEES’ FOR THE YEAR ENDED 30 SEPTEMBER 2009 Currencies The W-GEM investment is denominated in The Board of Trustees may appoint a person US Dollars. The UK portfolio is denominated willing to act who may hold office until the next in UK Sterling. The Board of Trustees believes Annual General Meeting and it is the practice that this provides the Foundation with a that at least two members of the Board of more appropriate balance of currencies than Trustees formally nominate any new appointee historically where the Foundation’s investment who is elected by a majority vote. All trustees portfolio was entirely denominated in UK receive an annual invitation to attend trustee Sterling. The Foundation’s non-endowed funds training seminars. are applied towards both the UK operating The following persons constituted the costs of the Foundation and grants to the Board of Trustees during the year: Institute. However, the Foundation’s endowed funds are entirely for the benefit of the Lord Mitchell Chairman Institute. The endowed income being in US Dame Vivien Duffield DBE Vice Chairman Dollars, is therefore better aligned with the Jonathan Kropman Hon Secretary Institute’s operating expenditure which is in both the Israeli Shekel and the US Dollar. Maxwell Nisner Hon Treasurer Governance Lord Alliance CBE All members of the Board of Trustees are Professor Benny Chain directors and trustees of the Foundation. Dr Arabella Duffield No director had any material interest in any contract or arrangement with the Foundation Daniel Gestetner during the year with the exception of those Michael Jacobs disclosed in note 16. Jonathan Metliss The Board of Trustees manages the business of the Foundation. The Executive Robert Ohrenstein Director directs the day-to-day operation of Martin Paisner CBE the office with a current staff of two full-time employees and a one day a month consultant Robert Perlman who advises on PR and Communications. Sir John Ritblat Unpaid volunteers also support the small professional team. Daniel Shapiro Members of the Board of Trustees are Howard Shore appointed in accordance with the Articles Jeremy Smouha of Association and one third of their number Myra Waiman are required to retire by rotation at annual general meetings. At every annual general meeting those who are subject to retirement by rotation retire from office and generally offer themselves for re-election. New members of the Board of Trustees may be appointed at general meetings if recommended by the Board of Trustees or where relevant notice criteria set out in the Articles of Association are met. -13-
  • 15. THE WEIZMANN INSTITUTE FOUNDATION (“the Foundation”) (Company Limited by Guarantee) REPORT OF THE TRUSTEES’ FOR THE YEAR ENDED 30 SEPTEMBER 2009 Risk ■ prepare the financial statements on The Board of Trustees believes that the major risks to which the charity is exposed the going concern basis unless it is have been reviewed, and where reasonable, inappropriate to presume that the charitable systems have been established that are company will continue in business. intended to mitigate those risks. A risk The trustees are responsible for keeping assessment analysis was undertaken by proper accounting records that disclose with a sub-committee comprising the Honorary reasonable accuracy at any time the financial Treasurer, the Honorary Secretary and the position of the charitable company and enable Executive Director. No major risks were them to ensure that the financial statements identified. A risk analysis grid summarising comply with the Companies Act 2006. They key areas is monitored by the Executive are also responsible for safeguarding the Director and brought to the attention of the assets of the charitable company and hence Board of Trustees on at least an annual basis. for taking reasonable steps for the prevention and detection of fraud and other irregularities. Statement of trustees’ responsibilities In so far as the trustees are aware: The trustees (who are also directors of the ■ there is no relevant audit information of Weizmann Institute Foundation for the which the charitable company’s auditor is purposes of company law) are responsible unaware; and for preparing the Trustees’ Report and the ■ the trustees have taken all steps that they financial statements in accordance with ought to have taken to make themselves applicable law and United Kingdom aware of any relevant audit information Accounting Standards (United Kingdom and to establish that the auditor is aware Generally Accepted Accounting Practice). of that information. Company law requires the trustees to prepare The trustees are responsible for the financial statements for each financial year maintenance and integrity of the corporate which give a true and fair view of the state and financial information included on the of affairs of the charitable company and charitable company’s website. Legislation in of the incoming resources and application the United Kingdom governing the preparation of resources, including the income and and dissemination of financial statements may expenditure, of the charitable company for differ from legislation in other jurisdictions. that period. In preparing these financial statements, the trustees are required to: Auditors A resolution to reappoint ■ select suitable accounting policies and PricewaterhouseCoopers LLP as auditors then apply them consistently; to the company will be proposed and ■ observe the methods and principles in implemented at the annual general meeting. the Charities SORP; By order of the Board of Trustees. ■ make judgements and estimates that Jonathan Kropman are reasonable and prudent; Honorary Secretary ■ state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; 20 January 2010 -14-
  • 16. THE WEIZMANN INSTITUTE FOUNDATION (“the Foundation”) (Company Limited by Guarantee) INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE WEIZMANN INSTITUTE FOUNDATION We have audited the financial statements We report to you our opinion as to whether of The Weizmann Institute Foundation for the financial statements give a true and fair the year ended 30 September 2009 which view, have been properly prepared in comprise the Statement of Financial Activities, accordance with United Kingdom Generally the Summary Income and Expenditure Accepted Accounting Practice, and have Account, the Balance Sheet, the Cash Flow been prepared in accordance with the Statement and the related notes. The financial Companies Act 2006. We also report to statements have been prepared under the you whether in our opinion the information accounting policies set out therein. given in the Trustees’ Annual Report is consistent with the financial statements. Respective responsibilities In addition we report to you if, in our of trustees and auditors opinion, the company has not kept adequate The trustees’ (who are also the directors of accounting records, if the company’s the company for the purposes of company financial statements are not in agreement law) responsibilities for preparing the Annual with the accounting records and returns, Report and the financial statements in if we have not received all the information and accordance with applicable law and United explanations we require for our audit, or if Kingdom Accounting Standards (United certain disclosures of trustees’ remuneration Kingdom Generally Accepted Accounting specified by law are not made. Practice) and for being satisfied that the financial statements give a true and fair view We read the Trustees’ Annual Report and are set out in the Statement of Trustees’ consider the implications for our report if we Responsibilities. become aware of any apparent misstatements within it. Our responsibility is to audit the financial statements in accordance with relevant Basis of audit opinion legal and regulatory requirements and We conducted our audit in accordance with International Standards on Auditing (UK and International Standards on Auditing (UK and Ireland). This report, including the opinion, Ireland) issued by the Auditing Practices has been prepared for and only for the Board. An audit includes examination, on a company’s members as a body in accordance test basis, of evidence relevant to the amounts with Sections 495 and 496 of the Companies and disclosures in the financial statements. It Act 2006 and for no other purpose. We do also includes an assessment of the significant not, in giving this opinion, accept or assume estimates and judgments made by the trustees responsibility for any other purpose or to in the preparation of the financial statements, any other person to whom this report is and of whether the accounting policies are shown or into whose hands it may come appropriate to the company’s circumstances, save where expressly agreed by our prior consistently applied and adequately disclosed. consent in writing. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements. -15-
  • 17. THE WEIZMANN INSTITUTE FOUNDATION (“the Foundation”) (Company Limited by Guarantee) INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE WEIZMANN INSTITUTE FOUNDATION Opinion In our opinion: ■ the financial statements give a true and fair view of the state of the company’s affairs as at 30 September 2009 and of its incoming resources and application of resources, including its income and expenditure and cash flows, for the year then ended; ■ the financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; ■ the financial statements have been prepared in accordance with the Companies Act 2006; and ■ the information given in the Trustees’ Annual Report is consistent with the financial statements. Suzanne Woolfson (Senior Statutory Auditor) For and on behalf of PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors London 20 January 2010 -16-
  • 18. THE WEIZMANN INSTITUTE FOUNDATION (Limited by Guarantee) STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 SEPTEMBER 2009 ___________________________________________________________________________________ Unrestricted Restricted Permanently Total Total funds funds Endowed funds funds funds 2009 2009 2009 2009 2008 Note £ £ £ £ £ INCOMING RESOURCES Generated funds: Voluntary income Donations, gifts 141,765 1,809,990 185,366 2,137,121 1,662,968 Legacies 738,675 10,000 - 748,675 112,432 Activities for generating funds: Fundraising events 11,573 - - 11,573 557,298 Investment income 2 97,642 - 70,765 168,407 306,534 Incoming resources from charitable activities Educational events 8,520 95,000 - 103,520 11,867 998,175 1,914,990 256,131 3,169,296 2,651,099 TOTAL INCOMING RESOURCES RESOURCES EXPENDED Cost of generating funds 3 Fundraising costs 190,230 - - 190,230 357,171 Investment management & 53,287 - 87,098 140,385 110,101 administration costs Charitable activities 3 Research 482,554 2,010,709 - 2,493,263 1,526,399 Education & awareness 224,956 169,139 - 394,095 194,592 Governance costs 3 52,345 - - 52,345 39,636 1,003,372 2,179,848 87,098 3,270,318 2,227,899 TOTAL RESOURCES EXPENDED NET (OUTGOING)/INCOMING RESOURCES BEFORE (5,197) (264,858) 169,033 (101,022) 423,200 TRANSFERS Transfer between funds 10 - 382,876 (382,876) - - NET (OUTGOING)/INCOMING RESOURCES BEFORE GAINS / (5,197) 118,018 (213,843) (101,022) 423,200 (LOSSES) Foreign exchange gains - - 1,799,308 1,799,308 1,179,691 Unrealised investment gains / (losses) 323,400 - (430,633) (107,233) (1,989,798) 323,400 - 1,368,675 1,692,075 (810,177) NET MOVEMENT IN FUNDS 318,203 118,018 1,154,832 1,591,053 (386,977) Fund balances brought forward at 1 October 4,507,736 292,050 11,224,813 16,024,599 16,411,575 FUND BALANCES CARRIED 4,825,939 410,068 12,379,645 17,615,652 16,024,598 FORWARD AT 30 SEPTEMBER All the above operations are continuing. The notes on pages 21 to 35 form part of these financial statements - 17 -
  • 19. THE WEIZMANN INSTITUTE FOUNDATION (Limited by Guarantee) SUMMARY INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30 SEPTEMBER 2009 2009 2008 £ £ £ £ Income from continuing operations (excluding endowments) 2,913,165 2,230,520 Expenditure of continuing operations (3,183,220) (2,158,978) (excluding endowments) Surplus/(deficit) of income over expenditure before transfers (270,055) 71,542 Transfers from endowment of total return applied in the period 382,876 347,158 Surplus for the year on unrestricted and restricted 112,821 418,700 funds before unrealised gains/(losses) STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES FOR THE YEAR ENDED 30 SEPTEMBER 2009 2009 2008 £ £ Surplus/(deficit) for the year before unrealised investment gains/(losses) 112,821 418,700 Unrealised investment (losses)/gains 323,400 (692,430) Total recognised gains and losses for the year 436,221 (273,730) Total income comprises £998,175 (2008: £1,052,415) for unrestricted funds, and £1,914,990 (2008: £1,178,105) for restricted funds. A detailed analysis of income by source is provided in the Statement of Financial Activities. Detailed analyses of the expenditure are provided in the Statement of Financial Activities and note 3. Surplus of Income over Expenditure on unrestricted and restricted funds for the year of £112,821 (2008: £418,700) before investment asset disposals, comprises £5,197 net outgoing resources (2008: net £360,277) of unrestricted funds and £118,018 net incoming resources (2008: net incoming £58,423) on restricted funds, as shown in the Statement of Financial Activities. The Income and Expenditure Account is derived from the Statement of Financial Activities on page 18, which, together with the notes to the financial statements on pages 22 to 36, provides information on the movements during the year on all funds of the company. The notes on pages 21 to 35 form part of these financial statements - 18 -
  • 20. THE WEIZMANN INSTITUTE FOUNDATION (Limited by Guarantee) BALANCE SHEET AS AT 30 SEPTEMBER 2009 ____________________________________________________________________________ 2009 2008 Note £ £ £ £ Fixed assets Tangible Fixed Assets 5 10,405 21,401 Investments 1(c), 6 17,601,029 15,739,549 17,611,434 15,760,950 Current assets Debtors: Amount due from subsidiary undertaking 7 487 487 Other debtors 7 30,029 70,206 30,516 70,693 Cash at bank and in hand 8 177,046 234,664 207,562 305,357 Creditors: amounts falling due within one year 9 (203,344) (41,709) 4,218 263,648 Net current assets 17,615,652 16,024,598 Net assets Reserves Unrestricted funds 11,12 General Funds 4,702,636 4,116,081 Designated Funds 123,303 391,655 4,825,939 4,507,736 Restricted Funds 10,12 410,068 292,049 Endowed Funds 10,12 12,379,645 11,224,813 17,615,652 16,024,598 Of the total funds £2,706,662 (2008: £775,444) are represented by unrealised gains on investments Approved by the Board of Trustees on 20 January 2010 and signed on its behalf by: Trustee Trustee The notes on pages 21 to 35 form part of these financial statements - 19 -
  • 21. THE WEIZMANN INSTITUTE FOUNDATION (Limited by Guarantee) CASH FLOW STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2009 ___________________________________________________________________________ 2009 2008 Note £ £ £ £ Net (outgoing)/incoming resources Net (outgoing)/incoming resources excluding endowments (270,055) 71,542 Less investment income (97,642) (193,656) Add depreciation 11,850 13,615 Operating loss (355,847) (108,499) Decrease/(increase) in debtors 40,177 (40,861) Increase/(decrease) in creditors 161,635 (334,460) Net cash (outflow) from operating activities (154,035) (483,820) Returns on investments Investment Income including endowments 168,407 306,534 Net cash inflow from returns on investments 168,407 306,534 Capital expenditure and financial investment Purchase of tangible fixed assets (854) (29,295) Purchase of investments (2,161,884) (1,606,075) Sale of investments 1,992,480 1,541,711 Net cash outflow from capital expenditure and (170,258) (93,659) financial investment Financing New endowments 185,366 307,701 Expenditure from endowments (87,098) (68,921) Net cash inflow from financing 98,268 238,780 (Decrease) in cash in the period 17 (57,618) (32,165) The notes on pages 21 to 35 form part of these financial statements - 20 -
  • 22. THE WEIZMANN INSTITUTE FOUNDATION (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2009 1. Accounting policies (a) Basis of accounting The financial statements are prepared on the modified historical cost basis of accounting except investments which are shown at fair value in accordance with applicable Accounting Standards in the United Kingdom and comply with the Statement of Recommended Practice Accounting & Reporting by Charities (SORP 2005) and the Companies Act 2006. (b) Subsidiary company The Weizmann Institute Foundation owns 100% of the issued share capital of The Weizmann Trading Company Limited, a company incorporated in England. The issued share capital of 3 ordinary £1 shares is included at nil value. The principal activity of the Weizmann Trading Company Limited is to carry out trading activities associated with the activities of the Weizmann Institute Foundation. There is an open deed of covenant under which the profits of The Weizmann Trading Company Limited are donated to the Weizmann Institute Foundation. These financial statements contain information about The Weizmann Institute Foundation as an individual company and do not contain consolidated financial information as the parent company of a group. In the opinion of the directors, the accounts of the trading subsidiary are not material to the Foundation. Accordingly, the profit and loss account of The Weizmann Trading Company Limited is reproduced as note 14 to these accounts together with a summary balance sheet in note 15. The Company did not trade in the period. (c) Investments Investments in common stocks and fixed income securities are stated at fair value as at the balance sheet date. Fair value of exchange-listed securities is determined by the last sale price on the valuation date. Fixed income securities are valued based on prices obtained by one or more independent pricing services. Mutual funds are valued based on published net asset value. WGEF’s investments in nonregistered investment companies, which represent circa two thirds of its net assets, are carried at fair value as determined by the general partner and generally represent the Fund’s pro rata interest in the net assets of each nonregistered investment company. All valuations utilise financial information supplied by each investment company. The statement of financial activities includes the net gains and losses arising on the revaluation and disposals throughout the year. Investments are stated at fair value. It is the Foundation’s policy to keep valuations up to date such that when investments are sold there is no gain or loss arising. As a result the Statement of Financial Activities (“SOFA”) only includes those unrealised gains and losses arising from the revaluation of the investment portfolio throughout the year. Disclosure is made in note 6 of the difference between the historical cost and the sale proceeds of the investments sold during the year. Investment income is included on an accruals basis and is allocated across funds in proportion to the value of funds held. The Charity Commission permitted the Foundation to adopt the use of total return investment powers in relation to its permanent endowment investments by an order granted on 15 August 2006. The power permits the trustees to invest the portfolio to maximise total return and to apply an appropriate portion of the unapplied total return to income each year. In the current year 3% has been applied to income. Until the power is exercised to transfer a portion of unapplied total return to income (as disclosed in the fund transfers, note 10) the unapplied total return remains invested as part of the Permanent Endowment. (d) Tangible fixed assets Tangible fixed assets with a value of £500 or more are capitalised. Depreciation is provided to write off the cost, less estimated residual values, of all fixed assets, evenly over their expected useful lives. It is calculated at the following rates: Furniture, fixtures - 4 years Office equipment & computers - 3 years Website - 3 years - 21 -
  • 23. THE WEIZMANN INSTITUTE FOUNDATION (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2009 1. Accounting policies (continued) (e) Foreign currency translation The market value of investments outside the United Kingdom and monetary assets denominated in a foreign currency are translated into sterling at the rate of exchange ruling at the balance sheet date. Revenue and expenses in foreign currencies are recorded in sterling based on monthly average exchange rates. All gains or losses arising on translation are included in the Statement of Financial Activities for the year. (f) Income recognition and cost allocation The financial statements are prepared on the accruals basis, with the exception of certain income, which cannot be quantified until it is received. The policies applied are: Donations and Legacy income is included in the Statement of Financial Activities when the Foundation is legally entitled to the income and the amount can be quantified with reasonable accuracy. Event income (including donations received at events) and expenditure is included in the Statement of Financial Activities in the period in which the event takes place. Cost of generating funds are those costs incurred in attracting voluntary income. Investment Management fees and other overheads are allocated between restricted, unrestricted and endowed funds on appropriate bases such as investment values and staff time. Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees together with an apportionment of overhead and support costs. Overhead and support costs have been allocated first between charitable activity and governance. Overhead and support costs relating to Charitable Activities have been apportioned based on the number of individual grant awards made in recognition that the administrative costs of awarding, monitoring and assessing research grants, salary support and postgraduate scholarships are broadly equivalent. The allocation of overhead and support costs is analysed in note 3. All VAT costs are irrecoverable and included within the cost expenditure category to which they relate. The Foundation makes grants to the Institute based on the current needs of the Institute together with the availability of funds and the requests of donors. (g) Funds These financial statements include the income and expenditure of all endowed, restricted and unrestricted funds of the Foundation. Unrestricted funds comprise those funds, which the Board of Trustees are free to use in accordance with the charitable objects of the Foundation. They are divided between Designated Funds which have been set aside by the Trustees at their discretion for specific purposes and General funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Foundation. Restricted funds are funds, which have been given for particular purposes and projects (see note 10). Endowed funds are funds which must be held permanently be The Weizmann Institute Foundation. The funds are invested and the movement in fund values are recognised in the SOFA as investment gains and loses. Income arising on endowed funds is treated as restricted and shown in the SOFA as such. (h) Pensions Employees of the charity are entitled to join a defined contribution “money purchase” scheme. The charity contribution is restricted to the contributions disclosed in note 4. There were no outstanding contributions at the year end. - 22 -
  • 24. THE WEIZMANN INSTITUTE FOUNDATION (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2009 2. Investment income 2009 2008 £ £ Income from shares listed in the UK 15,077 3,269 Interest on bonds and other fund interest in the UK 82,565 190,387 Income from shares listed (outside the UK) 33,781 31,518 Interest on bonds and other fund interest (outside UK) 36,984 81,360 168,407 306,534 3. Resources expended Fund- Investment Research Education Gover- Total for Total for raising Manage- & nance 2009 2008 costs ment Awareness £ £ £ £ £ £ £ Direct costs , Salary 83,335 17,103 15,830 51,864 13,765 181,897 196,099 Other staff costs & 26,254 2,317 2,145 8,130 1,865 40,711 15,273 consultants Grant payments - - 2,457,454 65,290 - 2,522,744 1,502,330 Audit - - - - 16,669 16,669 16,533 Legal costs - 6,272 - - 6,272 12,544 12,246 Investment manager - 98,150 - - - 98,150 72,451 costs Direct activity costs 4,604 - - 211,119 1,642 217,365 239,625 Accountancy - 4,567 - - - 4,567 6,056 114,193 128,409 2,475,429 336,403 40,213 3,094,647 2,060,613 Support costs Salary 18,477 3,548 3,738 12,198 3,023 40,984 38,631 Other staff costs 16,782 3,222 3,395 11,079 2,746 37,224 15,080 Office overheads 31,362 4,004 8,230 26,468 4,893 74,957 85,830 Accountancy 4,458 569 1,170 3,763 696 10,656 14,130 Depreciation 4,958 633 1,301 4,184 774 11,850 13,615 76,037 11,976 17,834 57,692 12,132 175,671 167,286 Total 190,230 140,385 2,493,263 394,095 52,345 3,270,318 2,227,899 Governance costs include £1,642 (2008: £1,565) relating to the purchase of Trustees’ indemnity insurance. Grant payments represent awards to the Weizmann Institute, Israel in accordance with the Foundation’s charitable objects. Auditors’ remuneration for 2009 totalled £14,070 net of VAT (2008 £14,070). The auditors did not receive any fee for non-audit work. - 23 -
  • 25. THE WEIZMANN INSTITUTE FOUNDATION (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2009 4. Staff The aggregate payroll costs of these employees were: 2009 2008 £ £ Wages and salaries 184,378 202,135 Social security costs 21,221 23,008 Pension contributions 17,282 9,587 222,881 234,730 Temporary Staff 9,802 8,675 232,683 243,405 The average number of employees (full time equivalents) during the year was: 3.8 4.9 No remuneration was paid to members of the Board of Trustees, nor were any expenses reimbursed to them, during the current or previous years. The number of employees whose emoluments were over £60,000 was as follows: 2009 2008 Number Number £80,000-£89,999 - 1 £90,000-£99,999 1 - The Foundation operates a defined contribution pension scheme to which fixed contributions are made. The amount paid in the year was £17,282 (2008: £9,587), including amounts paid in relation to the higher paid employee of £17,282 (2008: £9,587). - 24 -
  • 26. THE WEIZMANN INSTITUTE FOUNDATION (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2009 5. Tangible Fixed Assets Website Office Furniture & equipment fixtures Total £ £ £ £ Cost 1 October 2008 25,770 17,687 9,980 53,437 Additions - - 854 854 __________ __________ __________ __________ 30 September 2009 25,770 17,687 10,834 54,291 __________ __________ __________ __________ Depreciation 1 October 2008 8,590 15,337 8,109 32,036 Charge for the year 8,590 1,175 2,085 11,850 __________ __________ __________ __________ 30 September 2009 17,180 16,512 10,194 43,886 __________ __________ __________ __________ Net book value 30 September 2009 8,590 1,175 640 10,405 __________ __________ __________ __________ Net book value 30 September 2008 17,180 2,350 1,871 21,401 __________ __________ __________ __________ - 25 -
  • 27. THE WEIZMANN INSTITUTE FOUNDATION (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2009 6. Investments 2009 2008 £ £ (a) Listed investments: Market value at beginning of year 15,739,549 16,485,362 Acquisitions at cost 1,631,795 2,136,165 Investment disposal proceeds (1,254,661) (1,251,462) Net movement in investment cash (737,819) (290,249) Movement in transactions awaiting settlement 530,090 (530,090) 15,908,954 16,549,726 Net investment (losses)/gains (107,233) (1,989,868) Foreign exchange gain/(loss) on overseas 1,799,308 1,179,691 investment fund Market value at 30 September 17,601,029 15,739,549 Historical cost at 30 September 14,894,367 14,964,105 Investments at market value comprise: Listed investments: UK 3,615,738 3,115,690 Cash held within investment portfolio 482,721 1,220,540 Transactions awaiting settlement - (530,090) Overseas investment fund 13,502,570 11,933,409 17,601,029 15,739,549 2009 (b) Movement in accumulated unrealised £ gains based on historic cost 1 October 775,444 1,613,900 Movement in the year 1,931,218 (838,456) 30 September 2,706,662 775,444 (c) Investments comprising 5% or over by value of the portfolio Market Market value value 2009 2008 £ £ - WGEF* 13,502,570 11,933,409 * The Weizmann Global Endowment Fund (W-GEF) is a limited partnership based in the USA which invests in a diverse range of equities and bonds and is managed by Weizmann Global Endowment Management Trust (W-GEM). - 26 -
  • 28. THE WEIZMANN INSTITUTE FOUNDATION (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2009 6. Investments (continued) Application of the Power of Total Return The Charity Commission permitted the Trust to adopt the use of total return investment powers in relation to its permanent endowment investments by an order granted on 15 August 2006. The power permits the trustees to invest the portfolio to maximise total return and to apply an appropriate portion of the unapplied total return to income each year. Until the power is exercised to transfer a portion of unapplied total return to income (as disclosed in the fund transfers, note 10) the unapplied total return remains invested as part of the Permanent Endowment. The investment fund and application of total return to 2009 2008 permanent endowment funds: £ £ Opening value of permanent endowment 11,224,813 11,338,060 Less: Original value of the gift (9,941,309) (9,633,608) Unapplied total return brought forward 1,283,504 1,704,452 Add Investment return: dividends and interest 70,765 112,878 Investment return: gains and losses 1,368,675 (117,747) Less Investment management and administration costs (87,098) (68,921) Unapplied total return before transfer to income 2,635,846 1,630,662 Less Unapplied total return applied (382,876) (347,159) Sub total: unapplied return as at 30 September 2,252,970 1,283,504 Add Original value of the gift brought forward 9,941,309 9,633,608 New endowments in the period 185,366 307,701 Permanent endowment including unapplied total return 12,379,645 11,224,813 as at 30 September, constituting the investment fund The original value of the permanent endowment at 1 October 2008 is the value of the individual funds as at 1 October 2003 together with any new gifts made in the period 1 October 2003 to 30 September 2008. It has been assumed that for the years to 30 September 2004 and 2008 the dividends and interest less costs has equated to the unapplied total return applied in the periods and as such the value of the unapplied return is equivalent to the net gains and losses in those periods. - 27 -
  • 29. THE WEIZMANN INSTITUTE FOUNDATION (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2009 7. Debtors 2009 2008 £ £ Amounts due from subsidiary 487 487 Prepayments 20,574 20,885 Accrued income 9,455 49,321 30,516 70,693 In addition to the income and assets recognised in the financial statements, the Trustees are aware of two additional matters. First, there is a potential legacy from an estate, but we have been informed that this may be subject to challenge and due to the nature of the assets of the trust, which includes property, the value is uncertain. Secondly, the Trustees own minority shares in an unquoted property company, but the value to be ascribed to this shareholding is also uncertain. For these reasons neither of these matters have been reflected in the results for the year or balance sheet. 8. Cash at bank and in hand 2009 2008 £ £ Balance with bankers comprise: Current accounts 176,542 234,310 176,542 234,310 Cash in hand 504 354 177,046 234,664 9. Creditors – amounts falling due within one year 2009 2008 £ £ Trade creditors 3,214 - Sundry creditors 5,809 415 Tax and Social Security 6,128 6,396 Grant commitment 157,041 - Accruals & deferred income 31,152 34,898 203,344 41,709 - 28 -
  • 30. THE WEIZMANN INSTITUTE FOUNDATION (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2009 10. Permanent Endowments and Restricted Funds The Weizmann Institute Foundation holds the following permanently endowed funds, the income from which are to be applied for specific restricted purposes associated with the Weizmann Institute of Science (“WIS”), and restricted funds where the entire balance is to be applied for the specific purposes stated: Permanent Endowed Funds Reuff-Wormser Scholarship Fund - to provide scholarships for Weizmann Institute postdoctoral students to complete their studies abroad Marcus Sieff Fund - to support Scientific Co-operation between United Kingdom Scientists and the Weizmann Institute of Science Maxwell Ellis Professorship Fund - to fund a Professorial Chair for biological research for medical purposes Dr Esther Hellinger & J Stanley Weyman Memorial Scholarship Fund - to establish a scholarship for the Feinberg Graduate School Raymond Burton Fund - for plant genome research Kitty Waas Dekker, Simon Waas and Rosette Dekker Scholarship Fund - for an MSc scholarship in perpetuity Kweller Fund - for a Chair of condensed matter physics Weinstock Fund - for a Chair in astrophysics Dorset Foundation – for the purpose of establishing a Chair at WIS Philip Harris & Gerald Ronson Career Development Chair – for a Chair in Diabetes Research Raymond Burton Prize – for nominated Chairs at WIS Jack & Simon Djanogly Scholarships and Djanogly Chair in Computer Science – for scholarships at WIS and a Chair in computer science Rixi Marcus Scholarships in memory of Eugenia, Ignacy and Herbert Alfred Heller – for scholarships at WIS Martin & Dianne Mendoza Scholarship – for the purpose of endowing a PhD scholarship Samuel Sebba Professorial Chair – for a Chair in pure and applied physics Norman Sosnow Postdoctoral Fellowship – for a postdoctoral fellowship Sir David Sieff PhD Scholarship in Brain Research – for endowed scholarships Elaine Blond Career Development Chair – a Chair at WIS in perpetuity Cecil Lewis – a Chair at WIS in perpetuity J&I Ritblat Educational Trust Fund – to fund the costs of attendance at the Annual Summer School. Sir Ernst Chain Research Programme – for joint research programmes (Imperial College, London and WIS) Curwen – Lowy Biological Studies Fund - to fund Postdoctoral Fellowships in Biological Sciences Smouha Endowment – To support Graduate Scholarships at the Feinberg Graduate School. Restricted Funds Charles Wolfson Charitable Trust – monies received to support Stem Cell Research New Scientists Fund – provides resources for new scientists to set up their laboratories and provides scholarships towards their stipends New Scientific Equipment Fund – this fund enables the Head of each Department to purchase new equipment or upgrade existing equipment Weizmann Book – funding towards the production of a high quality publication promoting the Weizmann Institute Annual Lectures – specific funding towards the foundations series of annual lectures Campaign for Science – part of the Institute campaign raising money for Science and Health, Education and the Environment. Biomatics – To support the work of Dr Eran Segal in the department of Computer Science & Mathematics. - 29 -
  • 31. THE WEIZMANN INSTITUTE FOUNDATION (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2009 10. Funds – Permanent Endowed Fund Original Gift Unapplied Fund value Incoming Investment Outgoing Total Return Unapplied Original Gift Fund Value Value at total return at Gains / resources Applied Total Return Value at at 30.9.09 1.10.08 at 1.10.08 1.10.08 Losses 30.9.09 £ £ £ £ £ £ £ £ £ £ Rueff Wormser Scholarship Fund 304,429 24,652 329,081 2,058 39,797 (2,533) (11,052) 52,922 304,429 357,351 Marcus Sieff Research Fund 518,003 46,600 564,603 3,530 68,280 (4,345) (18,962) 95,103 518,003 613,106 Maxwell Ellis Professorship Fund 698,951 108,356 807,307 5,048 97,631 (6,213) (27,113) 177,709 698,951 876,660 Dr Esther Hellinger & J Stanley Weyman Memorial Scholarship Fund 86,747 13,448 100,195 626 12,117 (771) (3,365) 22,055 86,747 108,802 Raymond Burton Fund 815,358 126,402 941,760 5,889 113,891 (7,248) (31,629) 207,305 815,358 1,022,663 Kitty Waas Dekker, Simon Waas and Rosette Dekker Scholarship Fund 78,365 12,148 90,513 566 10,946 (697) (3,040) 19,923 78,365 98,288 Kweller Fund 172,487 26,739 199,226 1,246 24,093 (1,533) (6,691) 43,854 172,487 216,341 Weinstock Fund 839,665 130,169 969,834 6,064 117,286 (7,464) (32,572) 213,483 839,665 1,053,148 Dorset Foundation 1,248,759 114,835 1,363,594 194,471 176,114 (11,207) (51,689) 237,158 1,434,125 1,671,283 Cecil Lewis Fund 901,148 139,703 1,040,851 6,508 125,875 (8,010) (34,959) 229,117 901,148 1,130,265 J&I Ritblat Educational Trust Fund 172,343 25,643 197,986 1,238 23,943 (1,524) (6,649) 42,651 172,343 214,994 Philip Harris & Gerald Ronson Career Development Chair 211,573 32,801 244,374 1,528 29,553 (1,881) (8,208) 53,793 211,573 265,366 Raymond Burton Prize 215,690 33,438 249,128 1,558 30,128 (1,917) (8,368) 54,839 215,690 270,529 Jack & Simon Djanogly Scholarship 52,181 8,090 60,271 377 7,289 (464) (2,025) 13,267 52,181 65,448 Rixi Marcus Scholarships 264,449 40,998 305,447 1,910 36,939 (2,351) (10,260) 67,236 264,449 331,685 Martin & Dianne Mendoza Scholarship 88,346 13,695 102,041 638 12,340 (785) (3,426) 22,462 88,346 110,808 Samuel Sebba Professorial Chair 1,011,546 156,814 1,168,360 7,305 141,295 (8,992) (39,236) 257,186 1,011,546 1,268,732 Norman Sosnow Postdoctoral Fellowship 288,453 44,719 333,172 2,083 40,292 (2,564) (11,191) 73,339 288,453 361,792 Sir David Sieff PhD Scholarship in Brain Research 112,686 17,468 130,154 814 15,740 (1,002) (4,369) 28,651 112,686 141,337 Elaine Blond Career Development Chair 253,080 39,234 292,314 1,828 35,351 (2,250) (9,818) 64,345 253,080 317,425 Sir Ernst Chain Research Programme 175,932 27,273 203,205 1,271 24,575 (1,564) (6,824) 44,731 175,932 220,663 Harry Weinrebe Chair 150,029 15,655 165,684 1,060 24,344 (1,305) (5,693) 34,061 150,029 184,090 Curwen-Lowy Biological Studies Fund 448,224 86,714 534,938 3,321 60,386 (4,087) (17,837) 128,497 448,224 576,721 Jacobs Endowment 755,863 (556) 755,307 4,723 91,343 (5,813) (25,367) 64,330 755,863 820,193 Smouha Endowment 77,002 (1,534) 75,468 471 9,127 (578) (2,533) 4,953 77,002 81,955 9,941,309 1,283,504 11,224,813 256,131 1,368,675 (87,098) (382,876) 2,252,970 10,126,675 12,379,645 - 30 -
  • 32. THE WEIZMANN INSTITUTE FOUNDATION (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2009 10. Funds – Restricted Fund Balance Income Outgoing Transferred Balance 30.9.08 from Endowed 30.9.09 Funds £ £ £ £ £ Rueff Wormser Scholarship Fund - - (11,052) 11,052 - Marcus Sieff Research Fund - - (18,962) 18,962 - Maxwell Ellis Professorship Fund - - (27,113) 27,113 - Dr Esther Hellinger & J Stanley Weyman Memorial Scholarship Fund - - (3,365) 3,365 - Raymond Burton Fund - - (31,629) 31,629 - Kitty Waas Dekker, Simon Waas and Rosette Dekker Scholarship Fund - - (3,040) 3,040 - Kweller Fund - - (6,691) 6,691 - Weinstock Fund - - (32,572) 32,572 - Dorset Foundation (51,689) 51,689 Cecil Lewis Fund - - (34,959) 34,959 - J&I Ritblat Educational Trust Fund - - (6,649) 6,649 - Philip Harris & Gerald Ronson Career Development Chair - - (8,208) 8,208 - Raymond Burton Prize - - (8,368) 8,368 - Jack & Simon Djanogly Scholarship - - (2,025) 2,025 - Rixi Marcus Scholarships - - (10,260) 10,260 - Martin & Dianne Mendoza Scholarship - - (3,426) 3,426 - Samuel Sebba Professorial Chair - - (39,236) 39,236 - Norman Sosnow Postdoctoral Fellowship - - (11,191) 11,191 - Sir David Sieff PhD Scholarship in Brain Research - - (4,369) 4,369 - Elaine Blond Career Development Chair - - (9,818) 9,818 - Sir Ernst Chain Research Programme - - (6,824) 6,824 - Harry Weinrebe Chair - - (5,693) 5,693 - Curwen-Lowy Biological Studies Fund - - (17,837) 17,837 - Jacobs Endowment - - (25,367) 25,367 - Smouha Endowment - - (2,533) 2,533 - - - (382,876) 382,876 - - 31 -
  • 33. THE WEIZMANN INSTITUTE FOUNDATION (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2009 10. Funds –Restricted (continued) Fund Balance Income Outgoing Transferred Balance 30.9.08 from Endowed 30.9.09 Funds £ £ £ £ £ Wolfson Family CT funds (split) - 503,950 (503,950) - - Mike Jacobs PhD for MDs - 164,918 (164,918) - - Cecil and Hilda Lewis - 242,000 (242,000) - - Weizmann Book Fund - 80,450 (80,450) - - Biomatics - 80,000 - - 80,000 PR & Communications Fund 50,000 95,000 (83,689) - 61,311 Campaign for Science 242,050 19,342 (22,635) - 238,757 Development of Fuels from Plant - 15,000 (15,000) - - LIYSF – Daniel Falkner - 5,000 (5,000) - - Richard & Christine Pinchas - 20,000 - - 20,000 Laboratories - 10,000 - - 10,000 Bioimaging - 679,330 (679,330) - - 292,050 1,914,990 (1,796,972) - 410,068 TOTAL 292,050 1,914,990 (2,179,848) 382,876 410,068 - 32 -
  • 34. THE WEIZMANN INSTITUTE FOUNDATION (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2009 11. Unrestricted funds Balance Incoming Outgoing Net Transfers Balance 30.9.08 resources resources investment 30.9.09 gain/(loss) £ £ £ £ £ £ Designated Funds UKWSP 391,655 - (268,352) - - 123,303 General Funds 4,116,081 998,175 (735,020) 323,400 - 4,702,636 Total Unrestricted 4,507,736 998,175 (1,003,372) 323,400 - 4,825,939 Funds The UK Weizmann Scientific Programme has been established to support high level scientific collaboration between the Weizmann Institute of Science in Israel and UK scientists. 12. Analysis of net assets between funds Permanent Restricted General Endowment Total Funds Total Total £ £ £ £ Tangible fixed assets 10,405 - - 10,405 Investments 4,811,316 410,068 12,379,645 17,601,029 Current assets 207,562 - - 207,562 Current liabilities (203,344) - - (203,344) Total net assets 4,825,939 410,068 12,379,645 17,615,652 13. Taxation The Weizmann Institute Foundation is registered under the Charities Act 1993 and is therefore not liable to Corporation Tax on its income and gains when applicable to, and applied for, charitable purposes. - 33 -
  • 35. THE WEIZMANN INSTITUTE FOUNDATION (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2009 14. The Weizmann Trading Company Limited Trading Profit and Loss Account for the year ended 30 September 2009 2009 2008 £ £ Continuing operations Turnover - - Cost of sales - - Gross profit - - Donation to Weizmann Institute Foundation - - Operating profit/(loss) - - Bank interest received - - - - Less: Taxation - - Retained loss for the financial year - - Accumulated surplus brought forward 408 408 Accumulated surplus carried forward 408 408 15. The Weizmann Trading Company Limited Summary Balance Sheet as at 30 September 2009 2009 2008 Current Assets £ £ Cash at bank and in hand 898 898 898 898 Less: Creditors falling due within one year (487) (487) Net assets 411 411 Share capital and reserves Share capital 3 3 Profit and loss account 408 408 Total shareholders’ funds 411 411 - 34 -
  • 36. THE WEIZMANN INSTITUTE FOUNDATION (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2009 16. Related party transactions The Foundation is owed £487 (2008: £859) on its current account by its wholly owned subsidiary, the Weizmann Trading Company Limited at the year-end. Five members of the Board of Trustees (The Hon Mrs Gilbert de Botton, Dame Vivien Duffield DBE, Martin Paisner, Sir John Ritblat and Lord Mitchell) are members of the Board of Governors of the Weizmann Institute of Science to which the Foundation paid £2,522,744 during the year (2008: £1,502,330). There have been no other related party transactions with the exception of the payment of legal charges amounting to £2,573 (2008: £12,245) to Berwin Leighton Paisner LLP. Martin Paisner and Jonathan Kropman, members of the Board of Trustees, are partners in that firm. 17. Movement in Cash At 1 October Cash flow At 30 2008 September 2009 £ £ £ Cash at bank and in hand 234,664 (57,618) 177,046 18. Leasing Commitments 2009 2008 Land & Land & Buildings Buildings £ £ Expiring 1-2 years 54,990 nil - 35 -