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Jewish Agency Companies 2014 Annual Report

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Jewish Agency Companies 2014 Annual Report Table of Contents Foreword 2 Annual Survey of Company Bureau Activities 3 THE COMPANIES Mission Masa 8 Israel Experience – Educational Tourism Services Ltd. 12 Jewish People Policy Institute 16 Daroma Tzafona Tikkun Olam 19 Daroma Tzafona Idan He’Atid 23 The National Project for the Ethiopian Community in Israel 25 Misholei Hinuch (Ramat Hadassah Youth Village) 29 Kiryat Yearim Youth Village 33 Ben Yakir Youth Village 36 DOR ‐ Camping Group 38 Olamit 39 National Company for Education, Development and Absorption 41 Beit Hatfutsot 43 Weitz Center for Development Studies 46 Israel Museum 50 Commercial and Amigour 51 Revenue Amigour 2000 56 Real Estate Participations 58 Idud 62 International Convention Center Binyanei HaUma 64 Spirit of Israel 67 Service Lalan 69 Pension and Provident Fund 72 Kupat Hayishuv 76 Israel Economic Development Corporation (Chayil) 78 IEF Companies Overview 80 Colleges: Levinsky College 81 Zinman College (Wingate) 83 Kaye College 85 Emek Hayarden College 86 Tel Hai College 88 Sample IEF companies in: Ramat Hasharon, Rehovot, Metulla, Eilat 90 Schools 94 Other Companies 98 1 Dear Friends, We are pleased to present the 2014 edition of the Annual Report on Jewish Agency companies to the members of the Assets & Liabilities Committee and its subcommittees, in accordance with Clause E.1.viii of the Jewish Agency By‐laws on companies. The decision to produce the report in PDF form was taken mainly to save costs, but also to make it available for you, on line, at all times and to allow us to update its content whenever necessary. We hope committee members will find this format user‐friendly, and we look forward to your comments. The Companies Bureau is available throughout the year to provide members of the Board of Governors with any information they wish to receive regarding Jewish Agency companies. Richie Pearlstone Arieh Abir Chairman Head of the Companies Bureau Assets & Liabilities Committee Andy Groveman Herb Gimelstob Chairman Chairman Companies & IEF Real Estate Companies Subcommittee Subcommittee 2 Annual Survey of Companies Bureau Activities The principal function of the Companies Bureau is to protect and promote the interests of the Jewish Agency through companies in which JAFI and its affiliated bodies own all or a part of the share capital. In all there are over 140 such companies. The function of the Companies Bureau is under the responsibility of the Chairman of the Executive. This organizational relationship is reflected in a close operational relationship with the Chairman's Office. The Chairman of the Asset and Liabilities Committee and the Chairman of the Companies Subcommittee provide the Companies Bureau with important guidance on a variety of issues. Furthermore many issues require close and sustained cooperation with the CFO and his staff and the Legal Department as well as with the Deputy Chairman of the Executive and the Director General. During 2013 the Companies Bureau placed particular emphasis on companies’ Business Plans and Business Goals. The Companies Bureau assists the companies in preparing work plans and does follow‐ up on progress, in the aim of realizing the potential inherent in companies and at the same time ensuring that the companies’ activities are consistent with the goals and needs of the Agency. Israel Experience The company is in the middle of a very busy summer, with close to 20,000 young people on various programs, including 3,000 on long‐term programs. This year the company is focusing on the Agency’s efforts within the Jewish community in France. In addition, the company has brought around 1,000 participants to Birthright programs and another 1,000 on a ship from Cyprus reenacting clandestine immigration. Even during the “Protective Edge” operation, the company continued to handle the arrival of 9,000 participants in short and long‐term programs in Israel. Accommodation considerations and attention to the Home Front directives forced the staff to change almost daily the educational and logistical plans. Happily, the participants as well as the counselors from abroad stayed with the programs and gained a positive experience of Israeli society at its best. As part of Jewish Agency response to the Operation, the company ran “respite days” for more than 35,000 residents of the South. The experience the company has gained, particularly in emergency situations, has brought many Jewish organizations and communities which are not currently working with the Israel Experience, to turn to the company for help, both in the educational and security fields. The company will be participating in a Ministry of Education tender for Israeli school trips to Poland, which will result in a significantly wider scope of activity for the company. The Israel Experience company reports a turnover of $12.3 million for the first quarter and a small operating profit of approximately $100,000. This is proportionately in line with the company's 2014 projections. Masa 2014 marks the 10th anniversary of Masa. This year there are over 250 programs, $37 million given as grants and scholarships, more than 150 strategic partners in Israel and around the world. There are over 85,000 graduates of Masa, and more than 10,500 current participants in Masa programs. 3 The company is currently undergoing a strategic process aimed at increasing the numbers of participants and enhancing the impact of programs. At this stage, the company is examining and analyzing two central components of the experience in Israel ‐‐ participants and products ‐‐ in order to optimize the programs for the current generation and be able to compete with other long‐term programs available around the world. Spirit of Israel Through donations and volunteering from all sectors of Israeli society, the Spirit of Israel supports social and educational programs of the Jewish Agency for the benefit of Israel’s at‐risk children and teens. The company currently focuses on joint ventures with leading Israeli companies and firms for the purpose of initiating new social programs, besides the monetary support, employee volunteering, and in‐kind donations being done for existing programs. The Spirit of Israel intends to continue being the leading body in Israeli society that emphasizes the value of giving and volunteering. As of the end of May, fundraising this year is up by 18% in relation to the same period last year. Real Estate Participations The REP company continues to meet the challenge posed by the Pension Fund, the company’s largest client, selling off properties, as per current government regulations. The company views the development of new clients throughout Israel as an important activity, utilizing its relative advantage of operations around the country. The company handles the betterment of Agency properties, including the necessary arrangements with state authorities (in close cooperation with the Asset Management Division). REP is currently finalizing a strategic planning process, with the assistance of a consulting firm, in coordination with the shareholders. The Real Estate Participations Company returned a first quarter gross profit 26% over budget. Amigour The company is in the midst of building 300 new residential units for seniors in the center of Israel, where those units are most needed: Kiryat‐Ono 71 units – The project should be completed by the end of this year. Kfar‐Saba 101 units – The foundation is built. Project is a month ahead of schedule. Tel‐Aviv 110 units – Amigour has submitted plans to the city, efforts being made towards approval of plans. Jerusalem A project has been proposed by Amigour and the Welfare Department of the municipality of Jerusalem, with the support of the Minister of Housing. This project involves turning two floors of parking space in a Talpiot building into 38 apartments. Plans have been submitted by Amigour. 4 Amigour is investing much effort into making sure the transfer of payments from the sale of Jewish Agency apartments continues. The transfer of Jewish Agency apartments to the Government exceeded the projected target by approximately 4%. In the first quarter, both Amigour's income and overall expenditure amounted to approximately 25% of its annual budget. During the Protective Edge operation, many thousands of residents connected to Amigour were exposed to rocket fire: 2,200 residents of seniors homes in the South and some 8,000 families living in public housing managed by Amigour in the South. Amigour augmented its presence in all the residences (overtime hours were increased and holidays cancelled). House staff, directors, care givers, social workers and all the support staff worked long hours to help the seniors, and the company management was on the ground daily responding to needs and supporting the staff and the residents. Amigour opened and readied all the bomb shelters and secure spaces in the South that are under its management , renovating hundreds of shelters, including in the public housing complexes. The company purchased necessary emergency equipment (mattresses, lighting, first aid kits, water, etc.) so that the shelters would be livable for longer periods, which in the case of seniors is often required. In the seniors homes, the cultural activities were enhanced, some of them taking place in the shelters. Amigour, which serves as the implementation arm of the government property tax authorities throughout the country for repairing war damage, carried out repairs from missile attacks wherever summoned, and it did so efficiently and with devotion and sensitivity to residents. Binyanei HaUma – International Convention Center In 2014 the company is concerned with the expected opening of the competing convention center – the “Arena”. In addition, anchor events such as the Presidential Conference are not taking place this year. Despite aggressive marketing efforts in Israel and abroad, the company expects a drop in reservations and events. In the first quarter of 2014, the ICC saw revenue 8% above budget, while actual costs stayed close to projection.
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