3. 2009 Budget (January 1, 2009 – December 31, 2009) Changes to the 2009 Budget of JAFI

Whereas recent and ongoing economic decline in the United States, Keren Hayesod countries and Israel continues to create uncertainty as to the revenue to be received for core operations of  JAFI for 2009; and

 

Whereas this situation necessitates fiscal responsibility and a decrease in the budget framework and programs for 2009;

 

Therefore, be it resolved as follows:

 

1.       To decrease the framework of the operating budget for unrestricted activities of the Jewish Agency for Israel for the Fiscal Year January 1, 2009 through December 31, 2009, so that the current aggregate amount of $301.5M is decreased by $25.5M as detailed herein below:

a.    To decrease the budget framework and expenses in the amount of $28.4M as follows:

 

U.S. dollars in thousands

 

 

 

 

2009
Budget Changes

 

 

 
 

Source:

 

 

 

 

 

 

 

 

 

Reduction in core income (see appendix A)

 

 

-25,300

 

 

 

 

 

 

Exchange rate effect

 

 

-3,100

 

 

 

 

 

 

 Total

 

 

-28,400

 

 

 

 

 

 

 

 

 

 

 

 

 

Applications:

 

 

 

 

 

 

 

 

 

Additional needs (net, see appendix B)

 

 

11,700

 

 

 

 

 

 

Exchange rate effect

 

 

-11,600

 

 

 

 

 

 

Additional overhead & JAFI Wide reduction

 

 

-7,000

 

 

 

 

 

 

Reduction in programs

 

 

-21,500

 

 

 

     Total

 

 

-28,400

 

 

 

 

b.    to take the following steps towards implementing the above mentioned reduction in programs:

 

                                   i.    To authorize the Chair of the Budget and Finance Committee and the Treasurer, after consultation with the Chairs of the Board of Governors, the departmental committees and the relevant Budget & Finance subcommittees, to recommend to the Executive, not later than March 9, 2009, a detailed list of program reductions.

 

                                  ii.    The Executive shall make the necessary budgetary transfers required to meet the above cut in programs as amended, not later than March 16, 2009, and report such budgetary transfers to the Board of Governors not later than its meeting in June, 2009.

 

c.     To direct the Director General and the Director General of the Finance Department to put in place a mechanism to control spending and financial commitments during this interim period prior to the required abovementioned Executive approval, and a mechanism to control financial commitments that would involve expenditures after 2009. This will be done in order to protect JAFI's ability to comply with Budget revisions required as a result of the abovementioned Executive approval.

 

d.    To direct the Director General and the Director General of the Finance Department to report monthly to the Executive on the status of overhead reductions.

 

e.    To increase the budget framework and expenses in the amount of $2.9M for the expansion of programs financed by fee for services:

 

U.S. dollars in thousands

 

 

 

 

 

 

 

 

 

 

2009
Budget Changes

 

 

 
 

Source:

 

 

 

 

 

 

 

 

 

Fee for services

 

 

2,900

 

 

 

    Total

 

 

2,900

 

 

 

 

 

 

 

 

 

 

Applications:

 

 

 

 

 

 

 

 

 

Youth Aliyah

 

 

-100

 

 

 

 

 

 

Absorption Centers

 

 

3,000

 

 

 

    Total

 

 

2,900

 

 

 

 

2.       The Board notes that the Executive has resolved to make additional budget transfers at the request of the Operational Departments as detailed herein below:

 

U.S. dollars in thousands

 

Program

 

 

2009
Budget Changes

 

 

Immigration and Absorption Department:

 

 

 

 

 

Rescue, basic assistance and Promoting Aliyah

 

 

Aliyah 2000

 

 

414

 

 

Aliyah Activities

 

 

14

 

 

Marketing & Raising Awareness

 

 

1,459

 

 

Customer Support

 

 

-1,211

 

 

Closing the Deal – Aliyah

 

 

-234

 

 

Aliyah of Choice- Overseas

 

 

-1,000

 

 

Joint Emissaries

 

 

-30

 

 

Aliyah Shlichim

 

 

-790

 

 

Publications & Information for Potential Olim

 

 

-76

 

 

Pre Aliyah Tours

 

 

-308

 

 

Marva

 

 

-376

 

 

Interns

 

 

-151

 

 

Magen David Volunteers

 

 

-191

 

 

Aliyah promotion amongst tourists

 

 

-145

 

 

Marketing of Youth Programs

 

 

-31

 

 

Global Aliyah Center

 

 

-30

 

 

Mobile Shlichim

 

 

83

 

 

Aliyah Encouragement and Emissaries – Management

 

 

323

 

 

Aliyah promotion in Israel

 

 

1,297

 

 

Other Programs (includes exchange rate fluctuation reserve)

 

 

25

 

 

Total

 

 

-958

 

 

Mobilizing for all Olim

 

 

At Home and Together

 

 

-66

 

 

Integration Activities

 

 

-875

 

 

Information Centers

 

 

-71

 

 

Other Programs (includes exchange rate fluctuation reserve)

 

 

71

 

 

Total

 

 

-941

 

 

Help for Olim-in–need

 

 

Absorption Centers

 

 

-1,522

 

 

Social ,Cultural & Enrichment Activities

 

 

-558

 

 

First Home in the Homeland (new program)

 

 

100

 

 

Absorption facilities for young adults (new program)

 

 

230

 

 

Apartments for initial absorption (new program)

 

 

70

 

 

Grants for New Olim (new program)

 

 

2,400

 

 

Aliyah of Choice –Israel

 

 

-1,000

 

 

Initial Ulpanim

 

 

35

 

 

Kedma

 

 

65

 

 

Kibbutz Ulpans

 

 

275

 

 

Kindergartens & day camps in Absorp. Centers

 

 

1,109

 

 

Selah

 

 

-641

 

 

Atid

 

 

-54

 

 

Welfare Activities in Absorption Centers

 

 

-18

 

 

Transport of Olim from Absorption Centers to Permanent Housing

 

 

-8

 

 

Absorption in Israel – Management

 

 

226

 

 

Job Mart

 

 

-10

 

 

Other Programs (includes exchange rate fluctuation reserve)

 

 

-518

 

 

Total

 

 

181

 

 

Representatives & infrastructure

 

 

Departmental representatives & infrastructure

 

 

-200

 

 

Total

 

 

-200

 

 

Jewish peoplehood and identity of young Israelis

 

 

Conversion Programs

 

 

12

 

 

Total

 

 

12

 

 

Departmental Management

 

 

Departmental Management

 

 

193

 

 

Total

 

 

193

 

 

General

 

 

Additional cuts in infrastructure & other

 

 

870

 

 

Overhead reduction

 

 

843

 

 

Total

 

 

1,713

 

 

Grand Total

 

 

 

 

 

-

 

 

 

U.S. dollars in thousands

 

Program

 

 

 

 

 

2009
Budget Changes

 

 

Jewish Zionist Education Department:

 

 

 

 

 

Israel education, engagement and experiences for young Jews worldwide

 

 

Activities in Regions: Youth Movements

 

 

-33

 

 

CHI'L - Day Schools in the Diaspora

 

 

-66

 

 

ERDS - Training for Formal/Informal Educators

 

 

376

 

 

Summer/ Winter Camps (FSU and the rest of the world)

 

 

49

 

 

FSU – HEFTZIBA

 

 

24

 

 

FSU - Higher Education

 

 

62

 

 

FSU - Jewish Identity

 

 

62

 

 

Sunday School

 

 

35

 

 

ERDS - Volunteer Monitoring and Training

 

 

-47

 

 

FSU - Youth Activities

 

 

3

 

 

FSU - Youth & Students Activities

 

 

-79

 

 

FSU - Experience Programs

 

 

-63

 

 

Education Activities in the World

 

 

-287

 

 

Student Activities

 

 

-27

 

 

Educational Tech bridge

 

 

-59

 

 

R & D - Hebrew Language Study

 

 

-89

 

 

Publications

 

 

-3

 

 

Other Educators

 

 

34

 

 

Other FSU

 

 

4

 

 

Total

 

 

-104

 

 

Mutual connection and leadership

 

 

ERDS - Training for Formal/Informal Educators MACHON

 

 

-191

 

 

Total

 

 

-191

 

 

Representatives & infrastructure

 

 

Departmental representatives & infrastructure

 

 

-17

 

 

Total

 

 

-17

 

 

Departmental Management

 

 

Departmental Management

 

 

-367

 

 

Total

 

 

-367

 

 

General

 

 

Overhead reduction

 

 

679

 

 

Total

 

 

679

 

 

Grand Total

 

 

 

 

 

-

 

 

 

U.S. dollars in thousands

 

Program

 

 

2009
Budget Changes

 

 

Israel Department:

 

 

 

 

 

Shape the future of Israel together

 

 

Partnership 2000

 

 

-275

 

 

Total

 

 

-275

 

 

Priority regions

 

 

Young Communities

 

 

-25

 

 

Planning & Advocacy

 

 

-50

 

 

Total

 

 

-75

 

 

Representatives & infrastructure

 

 

Departmental representatives & infrastructure

 

 

-127

 

 

Total

 

 

-127

 

 

Departmental Management

 

 

Departmental Management

 

 

-414

 

 

Total

 

 

-414

 

 

General

 

 

Overhead reduction

 

 

541

 

 

Program reduction

 

 

350

 

 

Total

 

 

891

 

 

Grand Total

 

 

 

 

 

-

 

 

 

 

Appendices

 

Appendix A: Reduction in core income

 

U.S. dollars in thousands

 

Core income

 

 

 

 

 

UJC Collective

 

 

-18,000

 

 

Overbudgeting of KH income

 

 

-6,300

 

 

Other core income

 

 

-2,000

 

 

Management fees of pass-through donations

 

 

-500

 

 

GOI participation effect on income

 

 

1,200

 

 

WZO agreement effect on income

 

 

300

 

 

Total

 

 

-25,300

 

 

 

Appendix B: Additional needs

 

U.S. dollars in thousands

 

Expenses

 

 

 

 

 

Additional financial expenses resulting from deteriorated cash flow position

 

 

2,000

 

 

Reserve to cover written commitments not met by designated funds

 

 

7,000

 

 

GOI participation effect on expenses

 

 

-300

 

 

Delay in full implementation of structural change

 

 

2,000

 

 

Management fees of designated donations

 

 

1,000

 

 

Total

 

 

11,700

 

 

 

 

 

 

 

 

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