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Word Zionist Organization Office in France ההסתדרות הציונית העולמית The World Zionist Organization THE OFFICE OF THE COMPTROLLER ANNUAL REPORT for 2014 to THE 37th ZIONIST CONGRESS Jerusalem, October 2015 The Office of the Comptroller: 14 Hillel St., P.O.B. 7063, Jerusalem 9107001 Tel: 972-2-6204500 Fax: 972-2-6204545 [email protected] Delegates to the 37th Zionist Congress, I am honored to submit to the 37th Zionist Congress a Report on the activities of the Office of the Comptroller for the year 2014 and since the 36th Zionist Congress. The volume includes reports that were discussed at the Subcommittee for Control of the Zionist General Council Standing Committee for Budget and Finance. According to the Statutes of the Comptroller and the Control Office (18b), the Chairman of the Zionist Executive should prepare a response to the individual reports submitted by the Comptroller. Such a response has not been received for each of the individual reports included in this volume. The Comptroller's recommendations should be thoroughly reviewed by the controlled bodies and implemented thereafter in order to improve ways of management, use of human resources, and funds allocated to them. I would like to thank the Chairperson of the Control Subcommittee and the members of the Subcommittee for their assistance in pursuing the implementation of my recommendations, as well as the Controlled bodies for their cooperation. Thanks go also to my staff for their thorough work. Asaf Sela Comptroller Jerusalem, October 2015 2 Message of the Chairperson of the Subcommittee for Control The World Zionist Organization Standing Committee for Budget and Finance 1. The Comptroller of the National Institutions examines the activities of the World Zionist Organization. Since the 36th Zionist Congress and following the election of the present Chairman of the World Zionist Organization, the Comptroller and his staff have been working to provide the members of the Subcommittee for Control and the World Zionist Organization with reports that include findings and recommendations for discussion and conclusion with the reviewed entities. 2. The Subcommittee for Control regards the work of the Comptroller and his staff as an important auxiliary tool for proper management of the various institutions and organizations and emphasizes this stand in its meetings. Also, the Subcommittee, together with the Comptroller and in coordination with the reviewed bodies, follows up on the implementation of the recommendations specified in the Comptroller's reports. 3. In view of the last two years' experience, I recommended to the Chairman of the World Zionist Organization that it is appropriate to grant an independent status to the Subcommittee for Control of the Standing Committee for Budget and Finance. I was informed that a resolution on the matter was approved at the XXXVI/5 Zionist General Council, in February 2015. This decision constitutes recognition of the importance of the work of the Comptroller and its stature in facilitating proper management of the reviewed entities. 4. The Subcommittee expresses its appreciation of the thorough on going work of the Comptroller and his staff in conducting the examinations and preparing the reports, while constantly aspiring to improve the activities of the World Zionist Organization. 5. I thank the members of the Subcommittee for Control for their cooperation. Upon completion of our term, I would like to thank all those involved in this important endeavor and wish success to those who will follow us and serve on the independent Control Committee. Baruch Levy, Ph.D. October 2015 Table of Contents Activities of the Office of the Comptroller during the Period Covered by the Report ........................................................................... 11 List of Reports Prepared in the Years 2005–2015 ............................ 15 Comptroller's Reports: The Zionist Federation in South Africa ............................................. 19 Objectives ............................................................................................... 21 Method and Scope .................................................................................. 21 Background ............................................................................................ 21 Support of Activities in South Africa ..................................................... 25 The World Zionist Organization Office in France ............................ 31 Objectives ............................................................................................... 33 Method and Scope .................................................................................. 33 Background ............................................................................................ 33 Legal Status ............................................................................................ 35 Budget .................................................................................................... 36 Finances .................................................................................................. 39 Banks ...................................................................................................... 43 Activities ................................................................................................ 46 Personnel and Reimbursement ............................................................... 51 T.L. Culture for Israel Ltd. ................................................................. 53 Introduction ............................................................................................ 55 WZO and the Ministry of Culture and Sport ......................................... 56 WZO and the Company ......................................................................... 58 Company Structure and Institutions ....................................................... 60 Company Operations .............................................................................. 63 Personnel ................................................................................................ 65 Budget and Finances (Company) ........................................................... 67 Income from Ministry of Culture ........................................................... 68 Activity and Program Expenses ............................................................. 68 General and Administrative Expenses ................................................... 70 Keren Kayemeth LeIsrael – Budget Preparation ............................. 73 Introduction ............................................................................................ 75 Background ............................................................................................ 78 Budget Preparation ................................................................................. 87 Assumptions in Preparing the Operating Activities Budget .................. 92 Budget Re-allocation .............................................................................. 95 Operating and Capital Expenditures Budget Approval Process ............ 98 Capital Expenditures Budget – Actual Performance ............................. 104 Fixed Costs Budget ................................................................................ 107 Keren Kayemeth LeIsrael – Spokesperson Unit ............................... 115 Introduction ............................................................................................ 117 Background ............................................................................................ 119 Budget Performance in 2014 .................................................................. 123 2014 Work Plan ..................................................................................... 128 Service Provider Contracts ..................................................................... 132 Overseas Communications Activities .................................................... 139 Procedures .............................................................................................. 149 Keren Kayemeth LeIsrael – Joint Programs with Organizations ... 153 Introduction ............................................................................................ 153 Budget .................................................................................................... 156 Decision-Making Process ...................................................................... 158 Budget Approval .................................................................................... 163 Contracts between KKL-JNF and the Organizations ............................. 165 Monitoring Compliance with the Organizations Commitments towards KKL-JNF ................................................. 171 Reporting on the Utilization of KKL-JNF Funds .................................. 172 Transferring KKL-JNF Funds to Organizations .................................... 173 Funding for WZO Organizations ........................................................... 174 Fiscal Conduct ........................................................................................ 199 Summary ................................................................................................ 205 Keren Hayesod – Property Management ........................................... 207 Introduction ............................................................................................ 209 Background ...........................................................................................
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