weizmann charityaccounts2009 v11 (2) js final

THE WEIZMANN INSTITUTE FOUNDATION (Company Limited by Guarantee)

TRUSTEES‟ ANNUAL REPORT AND ACCOUNTS

FOR THE YEAR ENDED 30 SEPTEMBER 2009

(Company Registration No. 483123) (Charity Registration No. 232666)

THE WEIZMANN INSTITUTE FOUNDATION (Limited by Guarantee) REPORT OF THE TRUSTEES‟ FOR THE YEAR ENDED 30 SEPTEMBER 2009

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CONTENTS Advisers 2 Trustees‟ Report 3-15 Auditors‟ Report 16-17 Statement of Financial Activities 18 Summary Income and Expenditure Account 19 Statement of Total Recognised Gains and Losses 19 Balance Sheet 20 Cash Flow Statement 21 Notes to the financial statements 22-36

THE WEIZMANN INSTITUTE FOUNDATION (Limited by Guarantee) REPORT OF THE TRUSTEES‟ FOR THE YEAR ENDED 30 SEPTEMBER 2009

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Advisers Investment Managers Rothschild Asset Management Limited 1 King William Street London EC4N 7AR W-GEM 110 East 42nd Street Suite 13101 New York NY10017 USA Auditors PricewaterhouseCoopers LLP 1 Embankment Place London WC2N 6RH Solicitors Berwin Leighton Paisner LLP Adelaide House London Bridge London EC4R 9HA Bankers N M Rothschild & Sons Limited New Court St Swithin's Lane London EC4P 4DU Bank Leumi (UK) plc 20 Stratford Place London W1C 1BG HSBC plc 90 Baker Street London W1M 2AX Accountants JS2 Limited One Crown Square Church Street East Woking, Surrey GU21 6HR Registered Office 126 Albert Street London NW1 7NE

THE WEIZMANN INSTITUTE FOUNDATION (“the Foundation”) (Company Limited by Guarantee) REPORT OF THE TRUSTEES‟ FOR THE YEAR ENDED 30 SEPTEMBER 2009

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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”).

OUR MISSION

Weizmann UK‟s mission is to communicate the work of the Weizmann Institute‟s scientists, to encourage support for the Institute‟s work, and to promote collaboration between the Institute and UK universities.

Although our primary goal is to raise funds, Weizmann UK aims to communicate the Institute's scientific discoveries and breakthroughs to its UK friends, supporters and the public. We also actively promote greater scientific collaboration between the Weizmann Institute and leading UK scientific institutions.

We deliver public benefit through our events and education programmes, which provide unique access to inspirational scientists and cutting-edge research to the wider UK public. The scientific breakthroughs made at the Weizmann Institute in Rehovot, Israel, are for the benefit of humanity. The Trustees confirm that they have complied with the duty in section 4 of the Charities Act 2006 to have due regard to the Charity Commission's general guidance on public benefit.

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 programme in the UK, and establishing an Annual Scientific Symposium between Institute Scientists and their UK colleagues.

Making Connections Grant Programme Launched The Making Connections grants are awarded by the Institute to research projects which unite researchers with their counterparts at UK Universities. The first grants were made in March 2009. These grants have been possible due to Weizmann UK‟s fundraising efforts, most notably our Gala Fundraising Dinner that was held in June 2008 at the Science Museum.


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The Institute received 29 applications, many more than had been initially anticipated; 10 projects were shortlisted, and 5 were finally chosen to receive funding. These include work on areas as diverse as the neurological science behind „false memory syndrome‟, and the astrophysics behind the phenomenon of Dark Energy. The funded projects include: Brain Substrates of Memory Conformity: Prof. Yadin Dudai, Weizmann Institute & Prof. Raymond Dolan and Dr Tali Sharot, University College London. Probing the Mechanism of Collagen Degradation: Prof. Irit Sagi, Weizmann Institute & Dr Robert Visse, Imperial College London. Self-Assembly of Surface-Confirmed Functional Materials: Prof. Milko van der Boom, Weizmann Institute & Dr Jonathan Nitschke, Cambridge University. The study of Cell-Membrane Structures & Dynamics: Prof. Benny Shilo, Weizmann Institute & Prof. Buzz Baum, University College London. Foundations of Dark Energy Research: Prof. Avishay Gal-Yam, Weizmann Institute & Dr Mark Sullivan, Oxford University. Each team of scientists will receive $100,000 over 2 years, split between Institute Scientists and their UK colleagues. The Institute plans to open a second call for proposals in 2009-10.

“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

Making Connections Scientific Symposium A key component of Weizmann UK‟s Making Connections initiative is the organisation of an annual scientific meeting between Weizmann Institute scientists and their UK colleagues. Our 2009 Making Connections symposium focused on the important topic of Alternative Energy and was entitled „Light Energy for a Brighter Future‟. It was over-subscribed with scientists participating from all over Europe who work in the area of renewable and alternative energy. The Symposium was co-chaired by Professor David Cahen, director of the Alternative Sustainable Energy Research Initiative (AERI) at the Weizmann Institute of Science, Israel, and Professor James Barber FRS, the Ernst Chain Professor of Biochemistry at Imperial College London. Over two stimulating days there were presentations from scientists whose innovative research has the potential to revolutionise the way we consume and generate energy. The concluding event was a panel discussion open to the public, which several hundred people struggled through torrential rain to attend. No doubt this was because of the panel members, who included Professor John Beddington, the government's chief scientific adviser, and Lord


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Hunt, the Minister of State for Sustainable Development and Energy Innovation, and Jonathan Leake, Science Editor of The Sunday Times. Educational Programmes Through our educational activities we have brought young people from diverse faiths and backgrounds into contact with inspirational scientists from the Weizmann Institute. In association with the UK‟s Zionist Federation and other UK Academic Friends of Israeli Universities, Weizmann UK participated in a day of Science event that took place in March. This two day event was held at the Museum of Science in Manchester and London‟s Science Museum in Kensington. Professor Eilam Gross of the Weizmann Institute‟s department of Particle Physics, gave a stunning presentation about his work on the Large Hadron Collider at CERN to audiences of awed schoolchildren in both London and Manchester. Our International Summer Science School, known as the Bessie Lawrence programme allowed 11 children from year 13 to travel to Israel to take part in a prestigious residential summer camp, undertaking lab research with world-leading scientists and undertaking field trips throughout Israel. For many UK schoolchildren, Weizmann UK provides contact with, and a route into, professional science. Weizmann UK & The Weizmann Institute of Science Celebrations for the 60th anniversary of the Weizmann Institute kicked off in style this year with a delegation from Weizmann UK attending a gala programme in Paris for international friends who gathered to show their support. This was a glittering programme of scientific presentations and gala events. Among the many dignitaries was Baroness Susan Greenfield who spoke at a prestigious seminar at the Pasteur Institute. It was a huge source of pride for the delegates from Weizmann UK to join the Institutes‟ global family of friends and supporters in celebrating this important milestone. In the following pages you will read about just a handful of the ground-breaking scientific achievements which have taken place at the Institute this year, which Weizmann UK has been actively supporting through our fundraising endeavour. One of the highlights for the Institute has been receiving the Israel Presidents and Prime Ministers Memorial Prize. This was awarded in recognition of their excellent work in recruiting a record number of post-doctoral scientists back to Israel, a phenomenon 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. The astounding news that broke at the end of our financial year was the awarding of the 2009 Nobel Prize in Chemistry to Weizmann Institute Scientist Professor Ada Yonath for her work on the ribosome, which has led to the development of advanced anti-biotics. She is the fourth woman ever to win the chemistry prize, and the first Israeli woman scientist to be recognised by this prestigious award. Prof. Yonath‟s research is driven by curiosity and ambition to better understand the world and our place within it. This research aims high: to understand the ribosome - one of the most complicated “machines” of the biological system. The award is especially meaningful given that Prof. Yonath‟s research has been significantly funded for more than 20 years by American philanthropist Mrs Helen Kimmel, together with her late husband, Martin. The special friendship developed between Prof. Yonath and Mrs Kimmel over the years perfectly symbolizes the Weizmann partnership between science and philanthropy. This has been a consistent message for Weizmann UK since its inception on 8 June 1950.


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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.

Strategic Goals

Activities & Achievements

Plans 2009-2010

GOVERNANCE

To ensure existing Trustees remain actively involved.

We monitored developments in charity governance and ensured we continued to comply with all requirements. Trustees have been actively involved with events and fundraising efforts. Board meetings have been well-attended and productive.

To monitor trends in charity governance and ensure we remain compliant with legal requirements. To appoint a new Chairman at the end of Lord Mitchell‟s tenure.

FUNDRAISING

To increase funding for academic collaboration between leading UK academic institutions and the Institute. Our ongoing goal is to increase our donor base and continue to strengthen relationships with existing major donors.

We organised a 2-day scientific Symposium on alternative energies as part of our Making Connections programme, which was in partnership with Imperial College London. The concluding event was a Public Lecture attended by several hundred people which introduced us to new potential donors and raised the Weizmann UK profile. Several of our high-value donors joined us in Paris for a Gala Evening in celebration of the Institute‟s 60th anniversary. A record number of VIP visits to the Institute were coordinated for key prospects and existing major donors. We have built on our programme of business lunches and breakfasts for major donors and prospects, holding

Next year we plan to hold a third Symposium on Astrophysics, in collaboration with University College London, and to organise a second fundraising Gala evening. We are also planning an event with the University of Manchester for late 2009. To develop our major donors with further exclusive events. To continue to promote visits to the Institute to our major donors and prospects. To continue our programme of business breakfasts, lectures and missions for small targeted


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several throughout the year. groups.

Strategic Goals


Plans 2009-2010

FUNDRAISING (continued)

To continue to encourage smaller donations via our on-line website.

We have received several online donations this year and are now able to link directly to our „Giving‟ page via our website.

To further improve on our e-mail Communications tools in order to connect with a younger audience and maximise the potential for web donations.

COMMUNICATIONS & P.R.

To continue to assess the effectiveness of our website and online marketing. To continue to market our Making Connections programme. To continue to promote our educational activities to as wide an audience as possible.

Several newsletters have been produced online, allowing our supporters to feel connected to the Institute‟s achievements and to Weizmann UK‟s events and education programme. Both our Symposium and our Public lecture were over-subscribed events, which we succeeded in marketing primarily online. We also gained some press coverage for the Symposium, raising awareness of the 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.

Consider the possibility of commissioning more flexible and „branded‟ e-templates. We‟ll continue to market the Symposium and the Gala evening online, targeting a younger audience of potential supporters. To continue to ensure we widen the network of participating schools and students.

EDUCATION PROGRAMMES

To continue to foster closer collaboration with UK scientists and the Institute in Israel.

A group of scientists specialising in Alternative Energies at Imperial College visited the Institute in January. This visit has led to collaboration between the two academic institutions

We are pro-actively building on relationships funded by the Making Connections programme.


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Strategic Goals


Plans 2009-2010

EDUCATION PROGRAMMES

To continue to promote the range of educational programmes offered at the Institute to a UK audience.

The Bessie Lawrence Programme sent 9 UK students to participate in the 2009 Programme. Dulwich School sent another team to this year‟s Physics Tournament.

We are pro-actively building on relationships funded by the Making Connections programme. To encourage all participants to promote the scheme on their return to the new Sixth Formers. We are marketing the scheme more widely and hope that other schools will participate in 2010.

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 microscopic devices 'user friendly,' even while performing complex computations

Tom Ran and Shai Kaplan, research students in the lab of Prof. Ehud Shapiro – who is funded by the UK Dorset Foundation, have succeeded in using the DNA computers to effectively answer yes or no questions using strands of DNA designed to give off a green light corresponding to "yes".

When fed a rule – “all men are mortal” – and a fact – “Socrates is a man” – the computer answered the question “Is Socrates Mortal?” correctly. The team went on to set up more complicated queries involving multiple rules and facts, and the DNA computing devices were able to deduce the correct answers every time.


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The answer was encoded in a flash of green light. Some of the strands were equipped with a naturally glowing fluorescent molecule bound to a second protein which keeps the light covered. A specialized enzyme, attracted to the site of the correct answer, removed the “cover” and let the light shine. The tiny water drops containing the bio molecular data-bases were able to answer very intricate queries, and they lit up in a combination of colours representing the complex answers.

Besides the tantalizing possibility that such biology-based devices could one day be injected into the body – a sort of “doctor in a cell” locating disease and preventing its spread – bio molecular computers could conceivably perform millions of calculations in parallel.

Why do some Cancer Cells Survive?

What separates the few cancer cells that survive chemotherapy from those that don‟t? The answer to this question could prevent cancers from recurring. Research students Ariel Cohen, Naama Geva-Zatorsky and Eran Eden in the Institute‟s Molecular Cell Biology Department searched for survival anomalies in over 1000 different proteins.

The team‟s efforts have produced a comprehensive library of images and data on cancer cell proteins, a virtual goldmine of ready material for further cancer research. They also succeeded in pinpointing two proteins that seem to play a role in cancer cell survival.

The researchers found that around five percent of proteins act unpredictably, even when the cells and drug exposure were identical. The scientists called these proteins „bimodal‟, as they have the potential to act in two different ways.

The team then asked whether any of the bimodal proteins they had identified were those that occasionally promote cell survival. They found two molecules that seem to fit the bill. One of them, known by the letters DDX5, is a multitasking protein that, among other things, plays a role in initiating the production of other proteins. The other, RFC1, also plays varied roles, including directing the repair of damaged DNA. When the researchers blocked the production of these proteins in the cancer cells, the drug became much more efficient at wiping out the growth.

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.

The new approach devised by the Weizmann team is divided into a sequence of reactions, mediated by a unique ingredient – a special metal complex that Milstein‟s team designed in previous studies. The team found that, upon mixing this complex with water, the bonds between the hydrogen and oxygen atoms break, with one hydrogen atom binding to its organic part, while the remaining hydrogen and oxygen atoms (OH group) bind to its metal centre.


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This modified version of the complex provides the basis for the next stage of the process: the “heat stage.” When the water solution is heated to 100°C, hydrogen gas is released from the complex – a potential source of clean fuel – and another OH group is added to the metal centre. “But the most interesting part is the third „light stage,‟” says Milstein. “When we exposed this third complex to light at room temperature, not only was oxygen gas produced, but the metal complex also reverted back to its original state, which could be recycled for use in further reactions.”

These results are even more remarkable because further experiments indicate that the two OH groups join together to form hydrogen peroxide (H2O2), which quickly breaks up into oxygen and water. “Because hydrogen peroxide is considered a relatively unstable molecule, scientists have always disregarded this step, deeming it implausible; but we have shown otherwise,” says Milstein.

For their next study, Milstein‟s team plans to combine these stages to create an efficient catalytic system, bringing those in the field of alternative energy an important step closer to realising this important goal.

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 multiple sclerosis drugs were developed based on Weizmann research. MS affects 2.5million people worldwide;

Weizmann scientists developed the first successful vaccine for Type I (insulin dependent) diabetes. The vaccine is currently in clinical trials and plans call for it to be marketed worldwide;

Pioneered the use of amniotic fluid for antenatal diagnosis, leading to the clinical application of amniocentesis;

Discovered the structure of AChE (a brain enzyme). Their research is helping pave the way for the design of anti-Alzheimer's drugs;

Developed the Smartcard, used globally in IT security and Satellite TV. 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.


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FINANCIAL REVIEW The financial statements for the year ended 30 September 2009 show net outgoing resources for the year of £101,022 (2008: net incoming £423,200). The net movement in funds for the year amounted to an increase of £1,591,053 (2008: decrease of £386,977) after accounting for net investment and exchange gains of £1,692,075 (2008: losses of £810,177). During the year grants totalling £2,522,744 (2008: £1,502,330) were made to the Institute. The Weizmann Trading Company Ltd. did not trade during the period. Reserves At 30 September 2009 the Charity held unrestricted reserves of £4,825,939 (2008: £4,507,736). Including £123,303 as a designated fund towards the UK Weizmann Scientific Programme (see Note 11) and £2,000,000 to cover one year's operating costs of the charity and one year's budgeted grant support. The balance is held to provide a steady unrestricted income stream for the Charity. The policy is reviewed annually. Grants for Scientific Research 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.


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INVESTMENT POLICY All investments held by the Foundation have been acquired in accordance with the powers available to the Board of Trustees. There are no specific restrictions on the investment powers available to the Board of Trustees pursuant to its Memorandum of Association. The Board of Trustees has delegated investment monitoring responsibility to a sub-committee comprising the Chairman, Vice Chairman, Jeremy Smouha and the Honorary Secretary (“the Investment Committee”). During the year the Investment Committee has been reviewing the Foundation‟s investment policy. Over the 12 months to 30th September, W-GEM has performed reasonably given the turmoil in markets with a rise of about 1% against a rise in its policy benchmark of about 6% and a fall of 6% in the S&P. W-GEM is well diversified across managers and asset classes. Its policy benchmark is currently 40% long equities, 30% marketable alternatives, 18% fixed income, 2% cash and 10% private strategies. The Board of Trustees has also resolved that the majority of the Foundation‟s non-endowed funds (with both unrestricted and restricted purposes) should continue to be invested in the UK. The Investment Committee established a prudent investment policy comprising a mix of quoted UK equities, fixed income bonds and cash (approved by the Board of Trustees) and has instructed that the Investment Manager follows the guidelines set by the Investment Committee. The reports produced by the Investment Manager indicate that the Foundation‟s UK Funds performed broadly in line with the relevant equity and bond benchmark indicators during the 12 months to 30th September, outperforming the benchmark in 2009 after underperforming in the 4tt quarter of 2008. The Foundation has Charity Commission approval to adopt the use of total return investment powers in relation to its permanent endowment investments by an order granted on 30 March 2006 as varied by a further order made 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. Currencies The W-GEM investment is denominated in US Dollars. The UK portfolio is denominated in UK Sterling. The Board of Trustees believes that this provides the Foundation with a more appropriate balance of currencies than historically where the Foundation‟s investment portfolio was entirely denominated in UK Sterling. The Foundation‟s non-endowed funds are applied towards both the UK operating costs of the Foundation and grants to the Institute. However, the Foundation‟s endowed funds are entirely for the benefit of the Institute. The endowed income being in US Dollars, is therefore better aligned with the Institute‟s operating expenditure which is in both the Israeli Shekel and the US Dollar. GOVERNANCE All members of the Board of Trustees are directors and trustees of the Foundation. No director had any material interest in any contract or arrangement with the Foundation during the year with the exception of those disclosed in note 16. The Board of Trustees manages the business of the Foundation. The Executive Director directs the day-to-day operation of the office with a current staff of two full-time employees and a one day a month consultant who advises on PR and Communications. Unpaid volunteers also support the small professional team.


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Members of the Board of Trustees are appointed in accordance with the Articles of Association and one third of their number 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. The Board of Trustees may appoint a person willing to act who may hold office until the next Annual General Meeting and it is the practice that at least two members of the Board of Trustees formally nominate any new appointee who is elected by a majority vote. All trustees receive an annual invitation to attend trustee training seminars. The following persons constituted the Board of Trustees during the year: Lord Mitchell Chairman Dame Vivien Duffield DBE Vice Chairman Jonathan Kropman Hon Secretary Maxwell Nisner Hon Treasurer Lord Alliance CBE Professor Benny Chain Dr Arabella Duffield Daniel Gestetner Michael Jacobs Jonathan Metliss Robert Ohrenstein Martin Paisner CBE Robert Perlman Sir John Ritblat Daniel Shapiro Howard Shore Jeremy Smouha Myra Waiman


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Risk

The Board of Trustees believes that the major risks to which the charity is exposed have been reviewed, and where reasonable, systems have been established that are intended to mitigate those risks. A risk assessment analysis was undertaken by a sub-committee comprising the Honorary Treasurer, the Honorary Secretary and the Executive Director. No major risks were identified. A risk analysis grid summarising key areas is monitored by the Executive Director and brought to the attention of the Board of Trustees on at least an annual basis.

Statement of directors‟ responsibilities The directors are responsible for preparing the Directors‟ Report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and then apply them consistently;

make judgements and accounting 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 financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company‟s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The directors are responsible for the maintenance and integrity of the company‟s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Each of the persons who is a director at the date of the approval of this report confirms that: In accordance with Section 418 of the Companies Act 2006, directors‟ reports shall include a statement, in the case of each director in office at the date the directors‟ report is approved, that:

so far as the director is aware, there is no relevant audit information of which the company‟s auditors are unaware; and

he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company‟s auditors are aware of that information.


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This confirmation is given and should be interpreted in accordance with Section 418 of the Companies Act 2006. Auditors A resolution to reappoint PricewaterhouseCoopers LLP as auditors to the company will be proposed and implemented at the annual general meeting.

By order of the Board of Trustees on [DATE] Jonathan Kropman Honorary Secretary

THE WEIZMANN INSTITUTE FOUNDATION (Limited by Guarantee) INDEPENDENT AUDITORS‟ REPORT TO THE MEMBERS OF THE WEIZMANN INSTITUTE FOUNDATION ___________________________________________________________________________________

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We have audited the financial statements of The Weizmann Institute Foundation for the year ended 30 September 2009 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement and the related notes. The financial statements have been prepared under the accounting policies set out therein.

Respective responsibilities of trustees and auditors

The trustees‟ (who are also the directors of the company for the purposes of company law) responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and for being satisfied that the financial statements give a true and fair view are set out in the Statement of Trustees‟ Responsibilities.

Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland). This report, including the opinion, has been prepared for and only for the company‟s members as a body in accordance with Sections 495 and 496 of the Companies Act 2006 and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

We report to you our opinion as to whether the financial statements give a true and fair view, have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, and have been prepared in accordance with the Companies Act 2006. We also report to you whether in our opinion the information given in the Trustees' Annual Report is consistent with the financial statements.

In addition we report to you if, in our opinion, the company has not kept adequate accounting records, if the company‟s financial statements are not in agreement with the accounting records and returns, if we have not received all the information and explanations we require for our audit, or if certain disclosures of trustees‟ remuneration specified by law are not made.

We read the Trustees‟ Annual Report and consider the implications for our report if we become aware of any apparent misstatements within it.

Basis of audit opinion

We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgments made by the trustees in the preparation of the financial statements, and of whether the accounting policies are appropriate to the company‟s circumstances, consistently applied and adequately disclosed.

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.

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 WEIZMANN INSTITUTE FOUNDATION (Limited by Guarantee) INDEPENDENT AUDITORS‟ REPORT TO THE MEMBERS OF THE WEIZMANN INSTITUTE FOUNDATION ___________________________________________________________________________________

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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

Date

THE WEIZMANN INSTITUTE FOUNDATION (Limited by Guarantee) STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 SEPTEMBER 2009 ___________________________________________________________________________________

The notes on pages 22 to 36 form part of these financial statements

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Unrestricted funds

2009

Restricted funds

2009

PermanentlyEndowed

funds 2009

Total funds

2009

Total funds

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

TOTAL INCOMING RESOURCES 998,175 1,914,990

256,131 3,169,296 2,651,099

RESOURCES EXPENDED Cost of generating funds 3 Fundraising costs 190,230 - - 190,230 357,171 Investment management & administration costs

53,287 - 87,098 140,385 110,101

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

TOTAL RESOURCES EXPENDED 1,003,372 2,179,848

87,098 3,270,318 2,227,899

NET (OUTGOING)/INCOMING RESOURCES BEFORE TRANSFERS

(5,197)

(264,858)

169,033

(101,022)

423,200

Transfer between funds 10 - 382,876 (382,876) - -

NET (OUTGOING)/INCOMING RESOURCES BEFORE GAINS / (LOSSES)

(5,197)

118,018

(213,843)

(101,022)

423,200

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) 989,868)

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 FORWARD AT 30 SEPTEMBER

4,825,939 410,068

12,379,645 17,615,652 16,024,598

All the above operations are continuing.

THE WEIZMANN INSTITUTE FOUNDATION (Limited by Guarantee) SUMMARY INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30 SEPTEMBER 2009


- 19 -

2009 2008 £ £ £ £ Income from continuing operations (excluding endowments) 2,913,165 2,230,520 Expenditure of continuing operations (excluding endowments)

(3,183,220) (2,158,978)

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 funds before unrealised gains/(losses)

112,821 418,700

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 WEIZMANN INSTITUTE FOUNDATION (Limited by Guarantee) BALANCE SHEET AS AT 30 SEPTEMBER 2009 ____________________________________________________________________________


- 20 -

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)

Net current assets 4,218 263,648

Net assets 17,615,652 16,024,598

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 WEIZMANN INSTITUTE FOUNDATION (Limited by Guarantee) CASH FLOW STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2009

____________________________________________________________________________


- 21 -

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 financial investment

(170,258) (93,659)

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 WEIZMANN INSTITUTE FOUNDATION (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2009

- 22 -

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


- 23 -

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.


- 24 -

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-raising costs

Investment Manage-

ment

Research Education &

Awareness

Gover-nance

Total for 2009

Total for 2008

£ £ £ £ £ £ £

Direct costs ,

Salary 83,335 17,103 15,830 51,864 13,765 181,897 196,099

Other staff costs & consultants

26,254 2,317 2,145 8,130 1,865 40,711 15,273

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 costs

- 98,150 - - - 98,150 72,451

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.


- 25 -

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).


- 26 -

5. Tangible Fixed Assets Website Office

equipment

Furniture &

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 __________ __________ __________ __________


- 27 -

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 investment fund

1,799,308

1,179,691

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 value 2009

Market value 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).


- 28 -

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 permanent endowment funds:

2009 £

2008 £

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 Investment return: gains and losses

70,765

1,368,675

112,878

(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 as at 30 September, constituting the investment fund

12,379,645

11,224,813

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.


- 29 -

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


- 30 -

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.


- 31 -

10. Funds – Permanent Endowed Fund Original Gift

Value at 1.10.08

£

Unapplied total return at 1.10.08

£

Fund value at

1.10.08 £

Incoming

£

Investment Gains / Losses

£

Outgoing resources

£

Total Return Applied

£

Unapplied Total Return

£

Original Gift Value at 30.9.09

£

Fund Value at 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


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10. Funds – Restricted Fund Balance

30.9.08

£

Income

£

Outgoing

£

Transferred from Endowed

Funds £

Balance 30.9.09

£

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 -


- 33 -

10. Funds –Restricted (continued)

Fund Balance

30.9.08

£

Income

£

Outgoing

£

Transferred from Endowed

Funds £

Balance 30.9.09

£

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


- 34 -

11. Unrestricted funds

Balance 30.9.08

Incoming resources

Outgoing resources

Net investment gain/(loss)

Transfers Balance 30.9.09

£ £ £ £ £ £

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 Funds

4,507,736 998,175 (1,003,372) 323,400 - 4,825,939

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

General Restricted

Total

Permanent Endowment

Total Total Funds

£ £ £ £

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.


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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


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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

2008 Cash flow At 30

September 2009

£ £ £

Cash at bank and in hand 234,664 (57,618) 177,046

18. Leasing Commitments

2009

Land & Buildings

2008 Land &

Buildings £ £

Expiring 1-2 years 54,990 nil