Section VI: Finance of the International Federation
Article 34: Finances and property |
| Civil liability |
1 |
The International Federation shall be solely responsible, to the exclusion of the National Societies, for all its transactions and commitments. |
| Resources |
2 |
The regular resources of the International Federation shall consist of contributions from National Societies and income derived from investments. |
| Properties and unrestricted resources |
3 |
Within the limits laid down by its general object and functions the International Federation shall acquire, own, dispose of and administer any property. It may accept unrestricted contributions and assistance in any form from National Societies, individuals, governments and other public or private bodies. |
| Earmarked resources and real estate |
4 |
The International Federation may accept as an agent or trustee funds or property earmarked for particular use provided that such use is within the general scope of its activities, general object and functions. It may accept any conveyance of real estate for its use or benefit. |
| Reserves |
5 |
The International Federation may constitute and manage any reserves or other funds for its staff or for any of its activities. |
Article 35: Financial contributions |
| Financial year |
1 |
The financial year shall run from 1 January to 31 December. |
| Statutory contributions |
2 |
Each National Society shall pay an annual contribution to the International Federation in accordance with the scale of contributions established by the Finance Commission and approved by the General Assembly and within such time-limit as may be prescribed by the General Assembly. |
| Appeals |
3 |
Any National Society which contests the annual contribution approved by the General Assembly shall have the right to appeal immediately to the Finance Commission. However, such an appeal shall not invalidate the obligation of paying the uncontested part of the annual contribution within the time-limit fixed by the General Assembly. |
| Arrangements for payment of the contribution |
4 |
Any National Society unable, for any reason whatsoever, to pay its contribution may refer this matter to the Finance Commission in order to obtain appropriate arrangements enabling the National Society to pay it in conformity with the conditions fixed by the Finance Commission. However, such an appeal shall not invalidate the obligation of paying the contribution. |
| Declaration in default |
5 |
If a National Society does not pay the amount in accordance with paragraphs 3 or 4 of the present Article, the Finance Commission shall report the matter to the Governing Board. |
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The Governing Board shall receive the recommendation of the Finance Commission and shall decide whether to declare the Society in default or not. |
| Consequences of the declaration in default |
6 |
Any National Society which has been declared in default shall not be eligible for election or re-election to any body of the International Federation and, if so decided by the Governing Board, shall lose its right to vote. |
| Financial obligations |
7 |
Any National Society which has withdrawn, which has been suspended or which has been declared in default shall remain liable for payment of its contribution for the financial year during which any of the foregoing steps were taken, of any arrears of previous years and of any other debt to the International Federation. |
Article 36: Budget |
| Preparation of budget and financial statements |
1 |
The Secretary General shall draw up the budget of the International Federation in consultation with the Chair of the Finance Commission. The Secretary General shall also prepare a report on the accounts relating to the preceding financial year and submit these documents to the Governing Board for study and to the General Assembly for approval. |
| Approval of budget and financial statements |
2 |
The General Assembly shall examine and approve every two years:
- a) the financial statements and reports covering the previous two financial years;
- b) the budget for the next two financial years presented by the Secretary General and recommended by the Governing Board.
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3 |
The Governing Board shall examine every year the annual report of the previous financial year, presented by the Secretary General. |
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4 |
In those years in which the General Assembly does not meet the Governing Board shall review the budget for the following year, and, if exceptional circumstances exist, adjust that budget in the light of those circumstances. |
| Financial measures |
5 |
Subject to the provisions of Articles 17, paragraph 3, and 23, paragraph 3, the General Assembly, or failing it the Governing Board, may decide on any financial measures which may appear advisable, and shall take into consideration such recommendations as may be made by the Secretary General or the Chair of the Finance Commission. |
| Administration and execution of the budget |
6 |
The Secretary General who is responsible for the administration of the approved budget shall:
- a) implement the budget as adopted, ensuring the payment of contributions and, depending on the needs, defraying the expenses authorised;
- b) receive and hold all funds paid to the International Federation for whatever purpose, be accountable for these funds to the General Assembly and the Governing Board, and dispose of them in accordance with the budget adopted; and
- c) decide on the handling and investment of the available funds after consultation with the Chair of the Finance Commission.
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Article 37: Audit |
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1 |
At the close of each financial year, the accounts of that year:
- a) shall be made the subject of a report prepared by the Secretary General; and
- b) shall be audited and reported upon by a firm of internationally recognised independent auditors to be designated by the General Assembly on the recommendation of the Governing Board.
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2 |
These reports shall refer to the budget and accounts of the International Federation and shall also cover the use of funds entrusted to the International Federation in the capacity of agent or trustee.
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