Weizmann Uk Annual Accounts Final

The Weizmann Institute FoundationCompany Limited by Guarantee

Trustees’ Annual Report & Accounts30 September 2009

Company Registration No. 483123Charity Registration No. 232666

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

Contents

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

Investment ManagersRothschild Private Management Limited1 King William StreetLondon EC4N 7AR

W-GEM110 East 42nd StreetSuite 13101New YorkNY10017USA

AuditorsPricewaterhouseCoopers LLP1 Embankment PlaceLondon WC2N 6RH

SolicitorsBerwin Leighton Paisner LLP Adelaide HouseLondon BridgeLondon EC4R 9HA

BankersBank Leumi (UK) plc20 Stratford PlaceLondon W1C 1BG

HSBC plc90 Baker StreetLondon W1M 2AX

AccountantsJS2 LimitedOne Crown SquareChurch Street EastWoking, SurreyGU21 6HR

Registered OfficeWeizmann UK126 Albert StreetLondonNW1 7NE

Advisers

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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 principalregulations are set out in its Memorandum and Articles of Association.

The Foundation is a registered charity(registration number 232666). The registeredoffice 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 providingfinancial and material assistance,encouragement and support to and for pure and applied scientific research andrelated activities at the Weizmann Institute of Science in Rehovot, Israel (“the Institute”).

Our MissionWeizmann UK’s mission is to communicate the work of the Weizmann Institute’s scientists, to encourage support for theInstitute’s work, and to promote collaborationbetween the Institute and UK universities.

Although our primary goal is to raise funds, Weizmann UK aims to communicate the Institute’s scientific discoveries andbreakthroughs to its UK friends, supportersand the public. We also actively promotegreater scientific collaboration between the Weizmann Institute and leading UKscientific institutions.

We deliver public benefit through our eventsand education programmes, which provideunique access to inspirational scientists andcutting-edge research to the wider UK public.The scientific breakthroughs made at theWeizmann Institute in Rehovot, Israel, are for the benefit of humanity.

The Trustees confirm that they have complied with the duty in section 4 of theCharities Act 2006 to have due regard tothe Charity Commission’s general guidance on public benefit.

The Board of Trustees (being the directors of theFoundation), presents its report and financial statementsfor 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 inFebruary 2005.

Lord Mitchell, Chairman & Sheridan Gould, Executive Director

Review of the yearThis has been an exciting year for Weizmann UK, as we continued to developour Making Connections programme. This dynamic programme lies at the heart of Weizmann UK’s mission. We are makingconnections between Israel and the UK;establishing networks across frontiers, beyond politics, through our support of theInstitute’s launch of its first ever grant-givingprogramme in the UK, and establishing anAnnual Scientific Symposium betweenInstitute 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 theircounterparts at UK Universities. The firstgrants were made in March 2009. These grants have been possible due to WeizmannUK’s fundraising efforts, most notably our Gala Fundraising Dinner that was held in June 2008 at the Science Museum.

The Institute received 29 applications, many more than had been initially anticipated;10 projects were shortlisted, and 5 were finally chosen to receive funding. Theseinclude work on areas as diverse as theneurological science behind ‘false memorysyndrome,’ and the astrophysics behind thephenomenon 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 CollagenDegradation: Prof. Irit Sagi, Weizmann Institute& Dr Robert Visse, Imperial College London.

Self-Assembly of Surface-ConfirmedFunctional Materials: Prof. Milko van derBoom, Weizmann Institute & Dr JonathanNitschke, Cambridge University.

The study of Cell-Membrane Structures & Dynamics: Prof. Benny Shilo, WeizmannInstitute & 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 $100,000over 2 years, split between Institute Scientistsand their UK colleagues.

The Institute plans to open a second call forproposals in 2009-10.

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Scientific breakthroughs are the lifeline of future generations. The qualityof the research being conducted at the Weizmann Institute of Science inIsrael is recognised worldwide.The co-operation between Israeli scientistsand their colleagues in the UK builds the foundations for advances that willserve humanity.

“”Shimon Peres

President of the State of Israel

Making Connections Scientific SymposiumA key component of Weizmann UK’s Making Connections initiative is theorganisation of an annual scientific meetingbetween Weizmann Institute scientists andtheir UK colleagues. Our 2009 MakingConnections symposium focused on theimportant topic of Alternative Energy and was entitled ‘Light Energy for a BrighterFuture.’ It was over-subscribed with scientistsparticipating 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 theAlternative Sustainable Energy ResearchInitiative (AERI) at the Weizmann Institute of Science, Israel, and Professor James Barber FRS, the Ernst Chain Professor ofBiochemistry at Imperial College London. Over two stimulating days there werepresentations from scientists whose innovativeresearch has the potential to revolutionise the way we consume and generate energy.The concluding event was a panel discussionopen to the public, which several hundredpeople struggled through torrential rain toattend. No doubt this was because of thepanel members, who included Professor John Beddington, the government’s chiefscientific adviser, and Lord Hunt, the Ministerof State for Sustainable Development andEnergy 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 withinspirational scientists from the WeizmannInstitute. In association with the UK’s Zionist Federation and other UK AcademicFriends of Israeli Universities, Weizmann UKparticipated in a day of Science event thattook place in March. This two day event was held at the Museum of Science inManchester and London’s Science Museum in Kensington. Professor Eilam Gross of theWeizmann Institute’s department of ParticlePhysics, gave a stunning presentation abouthis 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 programmeallowed 11 children from year 13 to travel to Israel to take part in a prestigious residentialsummer camp, undertaking lab research with world-leading scientists and undertakingfield trips throughout Israel. For many UKschoolchildren, Weizmann UK provides contactwith, and a route into, professional science.

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Alternative Energy panel discussion at the Royal Geographical Society

2009 Bessie Lawrence ISSI students

Weizmann UK & The Weizmann Institute of ScienceCelebrations for the 60th anniversary of the Weizmann Institute kicked off in style thisyear with a delegation from Weizmann UKattending a gala programme in Paris forinternational friends who gathered to showtheir support. This was a glittering programmeof scientific presentations and gala events.Among the many dignitaries was BaronessSusan Greenfield who spoke at a prestigiousseminar at the Pasteur Institute. It was a hugesource of pride for the delegates fromWeizmann UK to join the Institutes’ globalfamily of friends and supporters in celebratingthis important milestone.

In the following pages you will read about just a handful of the ground-breaking scientific achievements which have takenplace at the Institute this year, whichWeizmann UK has been actively supportingthrough our fundraising endeavour. One of the highlights for the Institute has beenreceiving the Israel Presidents and PrimeMinisters Memorial Prize. This was awarded in recognition of their excellent work inrecruiting a record number of post-doctoralscientists 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 supportedby Weizmann UK donors.

The astounding news that broke at the end of our financial year was the awarding of the2009 Nobel Prize in Chemistry to WeizmannInstitute Scientist Professor Ada Yonath for her work on the ribosome, which has led to the development of advanced anti-biotics. Sheis the fourth woman ever to win the chemistryprize, and the first Israeli woman scientist to be recognised by this prestigious award.

Prof. Yonath’s research is driven by curiosityand ambition to better understand the worldand our place within it. This research aimshigh: to understand the ribosome - one of the most complicated “machines” of thebiological system.

The award is especially meaningful given that Prof. Yonath’s research has beensignificantly funded for more than 20 years by American philanthropist Mrs Helen Kimmel,together with her late husband, Martin. The special friendship developed betweenProf. Yonath and Mrs Kimmel over the yearsperfectly symbolizes the Weizmann partnershipbetween science and philanthropy. This hasbeen a consistent message for Weizmann UKsince its inception on 8 June 1950.

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X-Ray structures of the two Ribosomal Subunits from Eubacteria

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GOVERNANCE

Strategic Goals Activities & Achievements Plans 2009-2010

To ensure existing Trustees remain actively involved.

We monitored developmentsin charity governance andensured we continued tocomply with all requirements.

Trustees have been activelyinvolved with events andfundraising efforts.

Board meetings have beenwell-attended and productive.

To monitor trends in charitygovernance and ensure weremain compliant with legalrequirements.

To appoint a new Chairman at the end of Lord Mitchell’stenure.

COMMUNICATIONS & PUBLIC RELATIONS

To continue to assess the effectiveness of our websiteand online marketing.

To continue to market our Making Connectionsprogramme.

To continue to promote oureducational activities to aswide an audience as possible.

Several newsletters have beenproduced online, allowing oursupporters to feel connectedto the Institute’s achievementsand to Weizmann UK’s eventsand education programme.

Both our Symposium and our Public lecture were over-subscribed events, which we succeeded in marketingprimarily online.

We also gained some presscoverage for the Symposium,raising awareness of thescientific achievements at the Institute and enforcing our message that Weizmannscientists are world leaders.

We secured some coveragefor our Bessie Lawrenceprogramme which featuredpictures and quotes from thestudents as they participatedin the programme.

Consider the possibility ofcommissioning more flexibleand ‘branded’ e-templates.

We’ll continue to market the Symposium and the Gala evening online, targeting a younger audienceof potential supporters.

To continue to ensure we widenthe network of participatingschools and students.

The Foundation remains committed to the goal of its founders, namely to increase support for and awareness of the outstanding research andaccomplishments of the Institute’s scientists, in Israel.

Weizmann UK’s overall objectives for 2009 & beyond

EDUCATION PROGRAMMES


To continue to foster closercollaboration with UKscientists and the Institute in Israel.

To continue to promote the range of educationalprogrammes offered at theInstitute to a UK audience.

A group of scientistsspecialising in AlternativeEnergies at Imperial Collegevisited the Institute in January. This visit has led to collaboration between thetwo academic institutions.

The Bessie LawrenceProgramme sent 9 UKstudents to participate in the2009 Programme.

Dulwich School sent anotherteam to this year’s PhysicsTournament.

We are pro-actively buildingon relationships funded by the Making Connectionsprogramme.

To encourage all participantsto promote the scheme ontheir return to the new SixthFormers.

We are marketing the schememore widely and hope thatother schools will participatein 2010.

FUNDRAISING


To increase funding foracademic collaborationbetween leading UKacademic institutions and the Institute.

Our ongoing goal is toincrease our donor base and continue to strengthenrelationships with existingmajor donors.

To continue to encouragesmaller donations via our online website.

We organised a 2-dayscientific Symposium onalternative energies as part of our Making Connectionsprogramme, which was inpartnership with ImperialCollege London.

The concluding event was aPublic Lecture attended byseveral hundred people whichintroduced us to new potentialdonors and raised theWeizmann UK profile.

Several of our high-valuedonors joined us in Paris for aGala Evening in celebration ofthe Institute’s 60th anniversary.

A record number of VIP visits to the Institute werecoordinated for key prospectsand existing major donors.

We’ve built on our programmeof business lunches andbreakfasts for major donorsand prospects, holdingseveral throughout the year.

We have received severalonline donations this year and are now able to linkdirectly to our ‘Giving’ pagevia our website.

Next year we plan to hold a third Symposium on Astrophysics, incollaboration with UniversityCollege London, and toorganise a second fundraisingGala evening.

We are also planning an event with the University of Manchester for late 2009.

To develop our major donorswith further exclusive events.

To continue to promote visitsto the Institute to our majordonors and prospects.

To continue our programme of business breakfasts,lectures and missions forsmall targeted groups.

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

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A snapshot of just a few Weizmann InstituteachievementsDiscoveries made by scientists at the Institute have hit the headlines several times in the last year. The Weizmann Institute’sscientists focus on basic research driven by curiosity rather than by commerce. Here are just a few of the many achievementsrealised 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 Institutescientists have found a way to make thesemicroscopic devices 'user friendly,' even while performing complex computations

Tom Ran and Shai Kaplan, research studentsin the lab of Prof. Ehud Shapiro – who isfunded by the UK Dorset Foundation, havesucceeded in using the DNA computers toeffectively answer yes or no questions usingstrands of DNA designed to give off a greenlight corresponding to “yes.”

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

The answer was encoded in a flash of greenlight. Some of the strands were equipped witha naturally glowing fluorescent molecule boundto a second protein which keeps the lightcovered. A specialized enzyme, attracted tothe site of the correct answer, removed the“cover” and let the light shine. The tiny waterdrops containing the bio molecular data-baseswere able to answer very intricate queries, and they lit up in a combination of coloursrepresenting the complex answers.

Besides the tantalizing possibility that suchbiology-based devices could one day beinjected into the body – a sort of “doctor in a cell” locating disease and preventing itsspread – bio molecular computers couldconceivably perform millions of calculations in parallel.

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Finally, we are delighted to report that, despite global financial turmoil, the continued commitment and generosity of our UKsupporters has enabled us to meet our fundraising targets this year.We have succeeded in keeping our office running costs to theminimum and been fortunate in securing sponsorship for all of ourpublic events. Weizmann UK’s professional team at the end of 2009comprised of Ms Sheridan Gould, Executive Director, Ms TamarLevinsohn-Araneta, Donor Relations & Event Manager, Ms ZilaOrnstein, Executive Assistant to the Director, and Ms JacquelineWright, part-time Communications Manager.


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Why do some Cancer Cells Survive?What separates the few cancer cells thatsurvive chemotherapy from those that don’t?The answer to this question could preventcancers from recurring. Research studentsAriel Cohen, Naama Geva-Zatorsky and EranEden in the Institute’s Molecular Cell BiologyDepartment searched for survival anomalies in over 1000 different proteins.

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

The researchers found that around five percent of proteins act unpredictably, evenwhen the cells and drug exposure wereidentical. The scientists called these proteins‘bimodal,’ as they have the potential to act in two different ways.

The team then asked whether any of thebimodal proteins they had identified werethose that occasionally promote cell survival.They found two molecules that seem to fit thebill. One of them, known by the letters DDX5,is a multitasking protein that, among otherthings, plays a role in initiating the productionof other proteins. The other, RFC1, also playsvaried roles, including directing the repair ofdamaged DNA. When the researchers blockedthe production of these proteins in the cancercells, the drug became much more efficient atwiping out the growth.

A Unique Approach for SplittingWater into Hydrogen and OxygenThe design of efficient systems for splittingwater into hydrogen and oxygen is among the most important challenges facing sciencetoday, underpinning the long-term potential of hydrogen as a clean, sustainable fuel. Now, a unique approach developed by Prof. David Milstein and colleagues in theWeizmann Institute’s Organic ChemistryDepartment provides important steps inovercoming this challenge.

The new approach devised by the Weizmannteam is divided into a sequence of reactions,mediated by a unique ingredient – a specialmetal complex that Milstein’s team designed in previous studies. The team found that, uponmixing this complex with water, the bondsbetween the hydrogen and oxygen atoms break,with one hydrogen atom binding to its organicpart, while the remaining hydrogen and oxygenatoms (OH group) bind to its metal centre.

This modified version of the complex providesthe basis for the next stage of the process: the “heat stage.” When the water solution isheated to 100°C, hydrogen gas is releasedfrom the complex – a potential source of cleanfuel – and another OH group is added to themetal centre. “But the most interesting part is the third ‘light stage,’” says Milstein. “When we exposed this third complex to lightat room temperature, not only was oxygen gas produced, but the metal complex alsoreverted back to its original state, which couldbe recycled for use in further reactions.”

These results are even more remarkablebecause further experiments indicate that thetwo OH groups join together to form hydrogenperoxide (H2O2), which quickly breaks up intooxygen and water. “Because hydrogenperoxide is considered a relatively unstablemolecule, scientists have always disregardedthis step, deeming it implausible; but we haveshown otherwise,” says Milstein. For their nextstudy, Milstein’s team plans to combine thesestages to create an efficient catalytic system,bringing those in the field of alternative energyan important step closer to realising thisimportant goal.


■ Copaxone® and Rebif® two FDA approvedmultiple sclerosis drugs were developedbased on Weizmann research. MS affects2.5 million people worldwide;

■ Weizmann scientists developed the firstsuccessful vaccine for Type I (insulindependent) diabetes. The vaccine iscurrently in clinical trials and plans call for it to be marketed worldwide;

■ Pioneered the use of amniotic fluid forantenatal diagnosis, leading to the clinicalapplication of amniocentesis;

■ Discovered the structure of AChE (a brainenzyme). Their research is helping pave theway for the design of anti-Alzheimer’s drugs;

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

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The world needs our research: we need your supportOver the years the Weizmann Institute has grown with the country and has been the site of anumber of milestones in Israeli science. Institute scientists were pioneers in the field of cancerresearch. Others planned and built the country’s first electronic computer, one of the first in theworld. Another group founded the first nuclear physics department and built a particle acceleratornext door. They were the first to establish a company for transferring knowledge from academiato industry – named Yeda, Hebrew for knowledge – and they initiated the founding of a science-based industrial park near the Institute.

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 areparticularly grateful to our many commited UK donors whose support has been vital in ensuringthat Weizmann UK is able to provide funding to help the Weizmann Institute carry out itsimportant research.

Here are just some of the Institute’s major achievements:

Financial ReviewThe financial statements for the year ended 30 September 2009 show net outgoingresources for the year of £101,022 (2008: net incoming £423,200). The net movement in funds for the year amounted to an increaseof £1,591,053 (2008: decrease of £386,977)after accounting for net investment andexchange 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.

ReservesAt 30 September 2009 the Charity heldunrestricted reserves of £4,825,939 (2008: £4,507,736). Including £123,303 as a designated fund towards the UKWeizmann 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 steadyunrestricted income stream for the Charity. The policy is reviewed annually.

Grants for Scientific ResearchThe Foundation makes grants to the Institutebased on the current needs of the Institutetogether with the availability of funds and therequests of donors.

Investment PolicyAll investments held by the Foundation have been acquired in accordance with thepowers available to the Board of Trustees.There are no specific restrictions on theinvestment powers available to the Board of Trustees pursuant to its Memorandum of Association.

The Board of Trustees has delegatedinvestment monitoring responsibility to a sub-committee comprising the Chairman, Vice Chairman, Jeremy Smouha and the Honorary Secretary (“the InvestmentCommittee”).

During the year the Investment Committee has been reviewing the Foundation’sinvestment 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 managersand asset classes. Its policy benchmark iscurrently 40% long equities, 30% marketablealternatives, 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 andrestricted purposes) should continue to beinvested in the UK. The Investment Committeeestablished a prudent investment policycomprising a mix of quoted UK equities, fixedincome bonds and cash (approved by theBoard of Trustees) and has instructed that theInvestment Manager follows the guidelines setby the Investment Committee. The reportsproduced by the Investment Manager indicatethat the Foundation’s UK Funds performedbroadly in line with the relevant equity andbond benchmark indicators during the 12 months to 30th September, outperformingthe benchmark in 2009 after underperformingin the 4th quarter of 2008.

The Foundation has Charity Commissionapproval to adopt the use of total returninvestment powers in relation to its permanentendowment investments by an order grantedon 30 March 2006 as varied by a further ordermade on 15 August 2006. The power permitsthe Trustees to invest the portfolio to maximisetotal return and to apply an appropriate portionof the unapplied total return to income eachyear. 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 aspart of the permanent endowment.

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CurrenciesThe W-GEM investment is denominated in US Dollars. The UK portfolio is denominated in UK Sterling. The Board of Trustees believesthat this provides the Foundation with a more appropriate balance of currencies thanhistorically where the Foundation’s investmentportfolio was entirely denominated in UKSterling. The Foundation’s non-endowed fundsare applied towards both the UK operatingcosts of the Foundation and grants to theInstitute. However, the Foundation’s endowedfunds are entirely for the benefit of theInstitute. The endowed income being in USDollars, is therefore better aligned with theInstitute’s operating expenditure which is inboth the Israeli Shekel and the US Dollar.

GovernanceAll members of the Board of Trustees aredirectors and trustees of the Foundation. No director had any material interest in anycontract or arrangement with the Foundationduring the year with the exception of thosedisclosed in note 16.

The Board of Trustees manages the business of the Foundation. The ExecutiveDirector directs the day-to-day operation ofthe office with a current staff of two full-timeemployees and a one day a month consultantwho advises on PR and Communications.Unpaid volunteers also support the smallprofessional team.

Members of the Board of Trustees areappointed in accordance with the Articles of Association and one third of their numberare required to retire by rotation at annualgeneral meetings. At every annual generalmeeting those who are subject to retirement by rotation retire from office and generally offer themselves for re-election. New membersof the Board of Trustees may be appointed at general meetings if recommended by theBoard of Trustees or where relevant noticecriteria set out in the Articles of Association are met.

The Board of Trustees may appoint a personwilling to act who may hold office until the nextAnnual General Meeting and it is the practicethat at least two members of the Board ofTrustees formally nominate any new appointeewho is elected by a majority vote. All trusteesreceive an annual invitation to attend trusteetraining 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 exposedhave been reviewed, and where reasonable,systems have been established that areintended to mitigate those risks. A riskassessment analysis was undertaken by a sub-committee comprising the HonoraryTreasurer, the Honorary Secretary and theExecutive Director. No major risks wereidentified. A risk analysis grid summarising key areas is monitored by the ExecutiveDirector and brought to the attention of theBoard of Trustees on at least an annual basis.

Statement of trustees’responsibilitiesThe trustees (who are also directors of theWeizmann Institute Foundation for thepurposes of company law) are responsible for preparing the Trustees’ Report and thefinancial statements in accordance withapplicable law and United KingdomAccounting Standards (United KingdomGenerally Accepted Accounting Practice).

Company law requires the trustees to preparefinancial statements for each financial yearwhich give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income andexpenditure, of the charitable company for that period. In preparing these financialstatements, the trustees are required to:

■ select suitable accounting policies and then apply them consistently;

■ observe the methods and principles in the Charities SORP;

■ make judgements and estimates that are reasonable and prudent;

■ state whether applicable UK AccountingStandards have been followed, subject to any material departures disclosed andexplained in the financial statements;

■ prepare the financial statements on the going concern basis unless it isinappropriate to presume that the charitablecompany will continue in business.

The trustees are responsible for keepingproper accounting records that disclose withreasonable accuracy at any time the financialposition of the charitable company and enablethem to ensure that the financial statementscomply with the Companies Act 2006. Theyare also responsible for safeguarding theassets of the charitable company and hencefor taking reasonable steps for the preventionand detection of fraud and other irregularities.

In so far as the trustees are aware:

■ there is no relevant audit information ofwhich the charitable company’s auditor isunaware; and

■ the trustees have taken all steps that theyought to have taken to make themselvesaware of any relevant audit information and to establish that the auditor is aware of that information.

The trustees are responsible for themaintenance and integrity of the corporate and financial information included on thecharitable company’s website. Legislation inthe United Kingdom governing the preparationand dissemination of financial statements maydiffer from legislation in other jurisdictions.

AuditorsA resolution to reappointPricewaterhouseCoopers LLP as auditors to the company will be proposed andimplemented at the annual general meeting.

By order of the Board of Trustees.

Jonathan Kropman Honorary Secretary

20 January 2010

We have audited the financial statements of The Weizmann Institute Foundation for the year ended 30 September 2009 whichcomprise the Statement of Financial Activities,the Summary Income and ExpenditureAccount, the Balance Sheet, the Cash FlowStatement and the related notes. The financialstatements have been prepared under theaccounting policies set out therein.

Respective responsibilitiesof trustees and auditorsThe trustees’ (who are also the directors of the company for the purposes of companylaw) responsibilities for preparing the AnnualReport and the financial statements inaccordance with applicable law and UnitedKingdom Accounting Standards (UnitedKingdom Generally Accepted AccountingPractice) and for being satisfied that thefinancial statements give a true and fair vieware set out in the Statement of Trustees’Responsibilities.

Our responsibility is to audit the financialstatements in accordance with relevant legal and regulatory requirements andInternational Standards on Auditing (UK andIreland). This report, including the opinion, has been prepared for and only for thecompany’s members as a body in accordancewith Sections 495 and 496 of the CompaniesAct 2006 and for no other purpose. We do not, in giving this opinion, accept or assumeresponsibility 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 priorconsent in writing.

We report to you our opinion as to whether the financial statements give a true and fairview, have been properly prepared inaccordance with United Kingdom GenerallyAccepted Accounting Practice, and have been prepared in accordance with theCompanies Act 2006. We also report to you whether in our opinion the informationgiven in the Trustees’ Annual Report isconsistent with the financial statements.

In addition we report to you if, in our opinion, the company has not kept adequateaccounting 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 andexplanations we require for our audit, or ifcertain disclosures of trustees’ remunerationspecified by law are not made.

We read the Trustees’ Annual Report andconsider the implications for our report if webecome aware of any apparent misstatementswithin it.

Basis of audit opinionWe conducted our audit in accordance withInternational Standards on Auditing (UK andIreland) issued by the Auditing PracticesBoard. An audit includes examination, on atest basis, of evidence relevant to the amountsand disclosures in the financial statements. Italso includes an assessment of the significantestimates and judgments made by the trusteesin the preparation of the financial statements,and of whether the accounting policies areappropriate to the company’s circumstances,consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the information andexplanations which we considered necessaryin order to provide us with sufficient evidenceto give reasonable assurance that the financial statements are free from materialmisstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overalladequacy of the presentation of information in the financial statements.

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THE WEIZMANN INSTITUTE FOUNDATION (“the Foundation”)(Company Limited by Guarantee)INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE WEIZMANN INSTITUTE FOUNDATION

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THE WEIZMANN INSTITUTE FOUNDATION (“the Foundation”)(Company Limited by Guarantee)INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE WEIZMANN INSTITUTE FOUNDATION

OpinionIn 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, includingits income and expenditure and cash flows, for the year then ended;

■ the financial statements have been properly prepared in accordance with United Kingdom Generally AcceptedAccounting 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 LLPChartered Accountants and Statutory AuditorsLondon

20 January 2010

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

The notes on pages 21 to 35 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)

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


- 18 -

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 ____________________________________________________________________________


- 19 -

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 ___________________________________________________________________________


- 20 -

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

- 21 -

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


- 22 -

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.


- 23 -

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.


- 24 -

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).


- 25 -

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 __________ __________ __________ __________


- 26 -

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).


- 27 -

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.


- 28 -

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


- 29 -

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.


- 30 -

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 -


- 32 -

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


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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

Investor Relations

Weizmann Uk Annual Accounts Final