Translated from Hebrew
Aleh – Moriah (R.A.)
Financial Statements as of December 31, 2017
Note 1: General Information
1. The Association was founded on March 4, 1993 and is registered with the Registrar of
Public Non-Profit Organizations. Its number is 580094381.
2. The Association operates as a public institution under Section 9(2) of the Income Tax
Ordinance and is registered as a nonprofit organization for purposes of the Value-Added
Tax Law.
3. The Association is recognized as a public institution for the purpose of donations under
Section 46 of the Income Tax Ordinance.
4. The Association runs institutions for children with severe disabilities from infancy through
adulthood. The Association is affiliated with institutions in Bene Beraq, Jerusalem, and
Gedera.
5. In July 2013, the Association changed its name to Aleh Moriah (R.A.) (the previous
name was Moriah Welfare Projects [R.A.]).
6. In 2014, the Association purchased a building at 19 Horowitz St. in Gedera, in 2017, the
Association purchased an additional building at 21 Pines St. in Gedera. The purchases
were financed by a 13-year loan. The building serves as a residential hostel.
7. In 2016, the Association received a donation of the building known as Beit Eran, located
on Levinson 4, Gedera, according to a contract. The building was assessed at NIS
4,300,000, plus VAT. The Association bore only the costs of VAT and purchase tax.
Note 2: Principal Accounting Policies
1.
2.
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The financial statements were prepared in conformity with generally accepted
accounting principles for nonprofit corporations, in accordance with Opinion 69 of the
Institute of Certified Public Accountants in Israel and Standards 5 and 36 of the Israel
Accounting Standards Board.
The Association prepares its financial statements on an accrual basis.
The financial statements were prepared in nominal values.
Cash and cash equivalents - Balances in banks in shekels and in foreign currency, as
well as short-term deposits for a period of up to three months.
Definitions:
“Net assets”—the difference between the Association’s assets and its liabilities
“Restricted”—subject to a restriction imposed by the donors or by other outside agents
“Temporarily restricted”—subject to a restriction that expires or is lifted when a particular
event occurs, in accordance with stipulations by the donors or outside agents who
provided the resources.
Donations in cash equivalents: The Association does not include the value of volunteers’
labor in its financial statements. Donations of assets and services in kind are recorded
only when the value of the donation can be estimated appropriately.
Balances in foreign currency or linked to foreign currency are displayed according to the
representative exchange rate on the date of the balance sheet. Balances linked to the
Consumer Price Index are displayed in the financial statements based on the CPI.
Herewith are the relevant exchange rates and CPI:
Representative Representative
rate
Pct. change,
Pct. change,
rate
Dec. 31, 2017 Dec. 31, 2016
2017
2016
US dollar
3.467
3.845
(1.46%)
( 9.83% )
Pound sterling
4.6819
4.7252
(18.3%)
( 2.25% )
CPI
101.28
100.88
(0.198%)
0.397%
Fixed assets are displayed at cost. Depreciation is calculated by the straight-line
method, at annual rates based on the estimated useful life of the assets.
The rates of depreciation are as follows: furniture and equipment, 12%–15% per annum;
computer equipment, 33% per annum; motor vehicles, 15% per annum;
renovations/construction, 4%–10% per annum.
6
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