2017 Financial Statements - ALEH Jerusalem 2017 Financial Statements - ALEH Jerusalem | Page 7

Translated from Hebrew Aleh Jerusalem Center (R.A.) Financial Statements as of December 31, 2017 Note 1: General Information 1. 2. 3. 4. 5. 6. The Association was founded on November 28, 1995 and is registered with the Registrar of Public Nonprofit Organizations under the Associations Law. Its number is 580265155. The Association operates as a public institution in accordance with Section 9(2) of the Income Tax Ordinance and is registered as a nonprofit organization for purposes of the Value-Added Tax Law. The Association is recognized as a public institution for the purpose of donations under Section 46 of the Income Tax Ordinance The Association runs institutions for individuals with severe disabilities from infancy through adulthood. The Association is affiliated with institutions in Bene Beraq, Gedera, and the rehabilitation village in the Negev. In August 2011, the Association changed its name to Aleh Jerusalem Center (R.A.) (the previous name was Aleh Jerusalem Homes [R.A.]). Beginning in January 2015, the Association began operating a network of residences (which had previously been run by the Keren Or Association) under an agreement with the Ministry of Social Affairs and the National Insurance Institute. Under this agreement, the Association rented apartments and purchased equipment to run the network and for the benefit of the residents. In February 2016, the Association ceased this activity, and responsibility for running the network of residences was transferred to the Avukat Or (R.A.). In 2015 the Association included a provision of NIS 320,000 in its books for the reimbursement of equipment that was purchased and remained in the apartments of the housing network which were transferred to the management of Avukat Or (R. A.). In 2017, only NIS 279,306 was received. The remainder of the provision was transferred to expenditures. Note 2: Principal Accounting Policies 1. 2. 3. 4. 5. 6. 7. 8. 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. 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. Donations include those for which donors received an item of nominal value in return for the donation. Cash and cash equivalents—balances in banks in NIS and in foreign currency as well as short- term (up to three months) bank deposits. 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 Pct. Pct. Representative Rate change, change, Rate Dec. 31, 2016 2017 2016 Dec. 31, 2017 US dollar 3.467 3.845 (% 9.83 ) (1.46%) Pound sterling 4.6819 4.7252 (% 2.25 ) (18.3%) CPI 101.28 100.88 % 0.397 (0.198%) - 6 - SZYMONOWICZ SZ & CO. CERTIFIED PUBLIC ACCOUNTANTS (ISR) ‫חשבון‬ ‫רואי‬ '‫ושות‬ ‫שמאי‬ ‫שמעונוביץ‬