4. Approval of the 2012 Budget
Whereas the Executive decided on November 2, 2011 on the level of the 2012 budget framework, and that included within this decision, where the required actions to be taken in order to eliminate the deficit within the Jewish Agency’s budget framework
It is hereby resolved:
a) The budget for operating activities of JAFI financed by unrestricted funds, for the Fiscal Year January 1, 2012 through December 31, 2012 (hereinafter – "the Fiscal Year"), as presented in the proposed budget attached hereto, is hereby approved in the aggregate amount of $174.846M.
b) The budget for operating activities of JAFI financed by fee for services income for the Fiscal Year, as presented in the proposed budget attached hereto, is hereby approved in the aggregate amount of $87.317M.
c) The budget for the operating activities of JAFI financed by designated funds for the Fiscal Year, as presented in the proposed budget attached hereto, is hereby approved in the aggregate amount of $60.2M. The level of designated funding may be adjusted up or down, resulting from either an additional funding not as yet budgeted or reassessments made at a later date.
d) Where practical, fees for services income and designated funds may be applied to finance operating activities shown in the proposed budget as financed by unrestricted funds.
e) The Director General or the Chief Financial Officer is authorized to approve payments due to employees' retirements, above the amounts budgeted in the Fiscal Year. The Director-General or the Chief Financial Officer shall exercise this authority subject to the provisions of Article VI.A.2.(c) of the By-Laws
2. The Capital Budget of JAFI for the Fiscal Year, as presented in the proposed budget attached hereto, is hereby approved in the aggregate amount of $17.2M for activities funded by unrestricted funds, and $4.3M for activities funded by designated funds.
3. According to the proposed budget attached hereto, additional revenue must be raised or expenditure reductions implemented in an aggregate amount of $4.597M in order to balance the 2012 budget. The Chairman of Budget and Finance, working with the Deputy Chairman of Budget and Finance, the Director General of JAFI and the Chief Financial Officer, and following consultation with the Chairman of the Executive, the Deputy Chairperson of the Executive and the Chairman of the Board of Governors, is hereby directed to prepare and submit to the Executive, for their approval, a proposal of the budget adjustments to be carried out in order to balance the 2012 budget. This is to be submitted to the Executive, within 60 days, for approval.
4. The Director General and the Chief Financial Officer may place a mechanism to control spending and financial commitments during this interim period prior to the required abovementioned Executive approval. This would be done in order to protect JAFI's ability to comply with Budget revisions required as a result of the abovementioned Executive approval.
5. Due to the volatility of the shekel-dollar exchange rate and the fact that all budget lines are in dollars, in the event that the actual exchange rate is higher than the JAFI budgetary exchange rate of 3.65 NIS/$, during the Fiscal Year, all budget lines for expenditure in shekels will be utilized in an amount in shekels up to and not more than the amount budgeted in dollars, multiplied by 3.65. Any surplus generated as a result of the above circumstances will be re-allocated by resolution of the Board of Governors.
6. JAFI may, during the Fiscal Year, renew existing Financial Commitments which shall mature during the fiscal year, and borrow additional sums as interim financing, so that at the end of the Fiscal Year the accumulated deficit will not exceed the total accumulated deficit at the beginning of the year.
"Financial Commitment" shall mean any loan, guarantee, indemnity or any other financial transaction and any document evidencing or constituting such financial commitment.