| Financial Regulations |
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03. Financial Regulations Approved by CC 1975, Amended by GA 1976, 1978, 1980, 1986, 1987, 1989, 1990, 1991, 1993, 1994, 1995, 1996, 1997 ,1998 , EB 1999, 2001, GA 2002 , EB 2003, GA 2004, EB 2005, GA 2006 and EB 2007. Financial Regulations can only be amended by a majority vote of the General Assembly. The exception to this is the annual membership fee for members, which requires a 2/3 majority. A. 1. Introduction 1.1 The financial year of FIDE begins on January 1st and ends on December 31st of each year. 1.2 The budget of FIDE is handled on the basis of the Euro monetary system. In exceptional cases the Treasurer is entitled, in agreement with the Presidential Board, to change to another monetary system. In exceptional cases he is also authorized to transfer the financial administration to another country. All FIDE bank accounts and investment accounts must at all times be held in FIDE`s name. 1.3. The financial management must be conducted on the basis of an annual budget set up by the Treasurer and approved by the General Assembly. If the budget is not approved, FIDE shall function on the basis of the last budget adopted by the General Assembly. In exceptional circumstances the Presidential Board can modify the budget between annual meetings of the General Assembly. 1.4 The Treasurer submits to the General Assembly the balance-sheet and the income and expenditure accounts, accompanied by the necessary documentation, when required, together with the audit report of a registered accountant. To complete his report, the Treasurer will give to the General Assembly the latest financial information. 1.5 After examination and approval of the documentation listed under rule 1.4, the General Assembly will discharge the Treasurer of his obligations for the financial year in question. 1.6 All expenses of FIDE should be paid by bank cheques or bank transfer. A petty cash account will be operated by the FIDE Secretariat which will be reconciled with the Treasurer on a monthly basis. 1.7 Financial transactions shall be signed by any two of three persons appointed by the Presidential Board; one of whom must be the Treasurer. 1.8 An accountant shall be nominated by the Presidential Board on the proposal of the Treasurer. 1.9 The accountant shall maintain the accounts and financial records of FIDE. 1.10 The official bank statements shall be submitted to the Treasurer for appraisal and comment. 1.11 The Treasurer and/or Accountant shall make available to the Auditor any documents requested in relation to FIDE s financial management together with any explanation that may be required. B. Costs 2. The expenses of the President, the Honorary President, the Deputy President, the Vice Presidents, the General Secretary, Auditor and Treasurer necessary to exercise their function as well as the other costs of the Secretariat are paid by FIDE. However, their travelling, hotel and boarding expenses for meetings of the General Assembly, Executive Board and Presidential Board are borne by the organizing federation. Hotel and boarding expenses for Continental Presidents are borne by the organizing federation. When the host federation does not pay such expenses then FIDE shall pay these expenses. 3. FIDE will only reimburse economy class tickets unless indicated in specific regulations. 4. Expenses must be approved by the President, the Deputy President or FIDE officials prior to being authorised by the Presidential Board. They must be submitted to the Treasurer for reimbursement, with original receipts, using the appropriate form provided by the Treasurer. C. Revenues 5. The revenues of FIDE accrue from: a. Membership fees to be paid by the affiliated federations. b. Entry fees to be paid by the affiliated federations for the participation in FIDE world-level competitions. c. Contributions by the affiliated federations for services rendered or rights granted by FIDE. d. Contributions by third parties for services rendered or rights granted by FIDE. e. Other contributions. 6. Membership Fees 6.1 The amounts of the annual membership fees to be invoiced will be decided and reviewed at the General Assembly every four years. 6.2 Affiliated International Chess Organizations shall pay a fee of 670 Euro on affiliation. 7. Entry Fees for Participation 7.1 The entry fees are:
+ collected by organizing federation 7.2 Continental Presidents shall inform the Treasurer of the names of those who have a personal right to enter another event as a result of their performance in a Continental Junior/Youth Championship. Continental Presidents shall issue to such players a document that can be handed to the organizers confirming their personal right of entry. 7.3 The entry fees must be paid to FIDE at the time the participant (participating team) is entered for the competition. Twenty per cent (20%) of the entry fees for FIDE events (except World Individual Championship, World Cup and Olympiad) will go to the credit of the organizing federation (50% in case of CACDEC federations). 7.4 Except for Olympiads, where late entries are NOT accepted, entry fees for late registration, withdrawal or no show shall be charged as follows: (a) Late registration after the closing date - two times of stipulated entry fee (b) Withdrawal after submission of registration - three times of stipulated entry fee (c) No show after registration - five times of stipulated entry fee If a player/team registers late and withdraws or does not appear, the federation will be charged the higher penalty. 7.5 All organizers of FIDE competitions must send to the FIDE Secretariat the list of registration of participants one day after the registration deadline. The organizer shall be fined 5,000 euros for failing to do so. 7.6 The organizer shall be responsible for publishing the list of participants on the website. 7.7 Based on the penalty fees received, FIDE shall compensate the appropriate amounts to the organizer. 7.8 The organizing federation of World Youth events is entitled to a maximum of seven players per category without payment of entry fee. Any further entries are charged at the additional player rate. In the case of a world event organised by a federation in the 1st and 2nd category of a chess developing country, the entry fees for the participants of the organising federation shall be waived. 8. Arrears 8.1 A federation that is one year in arrears shall not receive services from the Secretariat and cannot bid for or organize any FIDE event. 8.2 A federation that is two years in arrears shall be temporarily excluded. 8.3 For no-service federations, all entries fees to FIDE Individual Competitions (World and Continental) shall be doubled. This will permit individual players from federations, which are not receiving services, to play in FIDE individual events 8.4 FIDE can request Continents not to allow member Federations to participate in Continental Team events when the Federation has services withdrawn by FIDE due to non-payment of one year arrears. Three months notice shall be given to the Continent by FIDE after a proposal has been made by the Presidential Board. Members of Federations that are temporarily excluded shall not participate in any Continental event once a temporarily exclusion has been approved at the FIDE Congress. Continents can request that FIDE withdraws service to a member Federation that is in arrears with the Continent. A request must be sanctioned by a meeting of the Continental Board and forwarded to FIDE Secretariat. Ratings of that Federation will be withdrawn at the date of the next publication date of the rating list, and for other services, three months after the notice is received at the Secretariat. 9. Rating Fees 9.1 Rating fees will be charged to the national federations on the basis of the number of their "active" rated players included in the last published FIDE Rating List. 9.2 Annual rating fees are 1 Euro per player with a maximum each year of 1,500 Euros. 10. Invoices to Federations 10.1 In January and July each year, the Secretariat shall bill all the federations for the services of the previous six months and additionally in January shall include the annual membership fees. Any Federation settling all outstanding amounts by the following 15 March or 15 September respectively shall be entitled to deduct 5% from the amount due. 10.2 CACDEC countries in level 1 will have FIDE tournaments fees, title fees, rating fees and entry fees to World events offset up to the amount of the annual membership fee. 10.3 A ten percent (10%) per annum interest fee shall be charged for late payments, effective one year from date of invoice. 11. Application Fees for Titles 11.1 For the application of titles, the following amounts will be charged to the federations of the players concerned, provided these applications are filed at least 60 days before the start of the annual Congress:
11.2 Title applications received at the FIDE Secretariat after the 60-day deadline shall be charged a supplement of 50%, while those arriving at the Congress site after the commencement of the Titles & Ratings Committee meetings shall be charged double the standard fee. 11.3 Every four years, holders of the titles FIDE Instructor, FIDE Trainer and FIDE Senior Trainer, must apply for a renewal licence. The licence fee shall be: FIDE Instructor 60 Euro FIDE Trainer 120 Euro FIDE Senior Trainer 180 Euro National Instructor 30 Euro Developmental Instructor 30 Euro 12. Registration Fees for Organization of Tournaments 12.1 Registration fees will be charged every six months to the national federations in whose territories registered international chess competitions are held. 12.2 The registration fee is calculated on the following basis:
Team Tournaments: 1 Euro per player, no maximum Matches: according to category above. Scheveningen Tournaments: shall be charged as team event. 12.3 The annual tournament registration fees payable by a federation shall be a maximum of 15,000 Euro. Any late report service charges shall be in addition to the maximum. 12.4 A federation that fails to submit a rating report of a registered event in accordance with Title Regulation 1.9, B.01, shall be charged a penalty fee of 70 Euros for each offence, over and above the chargeable rating fee where more than 20% of the reports submitted in a six month period are concerned. 12.5 Tournaments submitted for rating by non-service federations shall be returned to the federation. There will be a delay of three months from the time a federation no longer receives service to the implementation of this regulation. 13. Publications FIDE publications of a general nature are for sale to affiliated federations and to third parties. Enquiries should be made to the Secretariat regarding prices. 14. Options and Bids to Organize FIDE events. 14.1 An application to organize a FIDE event (meeting or competition) shall be made on the prescribed form, accompanied by the deposit fee, to the General Assembly two years before the event. (exceptions: Olympiad (4 years before) and World Championship, (where there are specific regulations.) 14.2 The federation granted the first option shall pay the appropriate deposit fee before the conclusion of the General Assembly granting the option; otherwise, it shall be deemed to have abandoned the option. The federation granted the second option shall then have the opportunity to pay the appropriate deposit fee within 30 days. 14.3 The federation granted an option shall submit to the President an offer to organize the event for which the option was granted within the specified time limit; otherwise it shall be deemed to have abandoned the option and the deposit fee is forfeited. 14.4 An offer not in accordance with regulations shall not be considered. 14.5 An offer to organize a FIDE event (meeting or competition) shall be submitted on the prescribed form accompanied by the appropriate deposit fee. If the offer is rejected the deposit fee shall be credited to the federation`s account or refunded forthwith. 14.6 When the offer has been accepted the federation concerned must organize the event as stipulated or forfeit the deposit fee. 14.7 When the event has been successfully concluded the deposit fee shall be credited to the account of the organizing federation or refunded. 14.8 A Bid must be accompanied with a Bid Fee which is not refundable: 2,000 Euros World Youth Championships 1,000 Euros World Junior Championships 500 Euros World Schools, World Senior & World Amateur Championships and World Youth U16 Olympiad 15. Deposit Fees for Organization of FIDE Events 15.1 Every two years the General Assembly determines the amount to be paid to FIDE by organizing federations for the right to host FIDE meetings, tournaments and matches. 15.2 Schedule of deposit fees:
16. Olympiad 16.1 Acceptance of an offer by the General Assembly is conditional on payment of a deposit of 10,000 Euro to FIDE, by the federation making the offer, before the close of the session of the General Assembly where the bid is accepted. A bank guarantee or deposit in escrow for the total sum of 1,000,000 (One Million Euro) must be issued in favour of FIDE based on the following payment schedules: 1. issuance of the first tranche of the bank guarantee or deposit in escrow for the sum of 150,000 (One Hundred Fifty Thousand Euro) in favour of FIDE not later than thirty days after the acceptance of the bid by the General Assembly; 2. issuance of the second tranche of the bank guarantee or deposit in escrow for the sum of 300,000 (Three Hundred Thousand Euro) within the period of one year after the acceptance of the bid by the General Assembly, but before the beginning of the next session of the General Assembly; 3. issuance of the third tranche of the bank guarantee or deposit in escrow for the sum of 300,000 (Three Hundred Thousand Euro) within the period of two years after the acceptance of the bid by the General Assembly, but before the beginning of the next session of the General Assembly; 4. issuance of the fourth tranche of the bank guarantee or deposit in escrow for the sum of 250,000 (Two Hundred Fifty Thousand Euro) bringing the total sum of the bank guarantee or deposit in escrow to 1,000,000 (One Million Euro) within the period of three years after the acceptance of the bid by the General Assembly, but before the end of the next session of the General Assembly. 16.2 The bank guarantee or deposit in escrow, issued to FIDE under and by virtue of regulation 16.1 above, must be accepted as valid by FIDE`s bankers namely: UBS, Switzerland. 16.3 At any time, the deposit fee, the bank guarantee or deposit in escrow, or any portion of the bank guarantee or deposit in escrow issued in favour of FIDE shall be forfeited to FIDE if the applicant is in breach of the schedule of payments in regulation 16.1 above or fail to meet their obligations as organizers of the Olympiad. 16.4 The successful bidding federation shall pay to FIDE a fee of USD 350,000. In addition, the organising federation will pay to FIDE a sum of EUR 300,000 for the internet rights to the Olympiad (this payment includes the supply and cost of all server PCs, electronic chess equipment, clocks and manpower to operate the system) and a further EUR 250,000 for all other commercial rights. 16.5 All federations, except CACDEC members, shall pay a minimum of USD 25 per day for each official member of the team. Criteria shall be established to decide whether additional federations can be eligible for exemption. 17. World Youth & Junior Events 17.1 The FIDE President, or a designated representative, shall inspect the proposed venue (at the expense of the organizers for travel and full board) and obtain full guarantees from the national federation and sponsor(s) before awarding the hosting rights for the event. The guarantees shall address the following specific matters: 1. Costs of hotel accommodation and meals; 2. Specific types of meals to be served to participants bearing in mind the need for a balanced diet, quality and quantity of food; 3. Arrangements and costs of local transportation; 4. Facilities provided for the comfort of participants at the playing hall and hostels/hotels. 17.2 At any time after the award of the hosting rights for a Youth/Junior event, the FIDE President may take specific measures to rescind the hosting rights if there is sufficient evidence to show that the guarantees given by the host federation and sponsor(s) are being violated. Such measures may include the forfeiture of the deposit fees to FIDE. 17.3 Organising federations of the World Youth Championships must guarantee entry fees to FIDE of 60,000 Euro, this obligation can be covered by increasing the deposit fee to 60,000 Euro or providing an acceptable bank guarantee. Any shortfall in entry fees will be recovered by FIDE from the deposit fee and bank guarantee. 18. The testing fees for electronic clocks are as follows • application for a clock: 2500 € • fee for the experts: 200 € each • application fee in case of retesting: 1000 € • fee for the experts in case of retesting: 100 € each 19. Fees for Continental Events The Continental Assembly or the Continental President takes all decisions on fees for continental events. 20. Permanent Fund 20.1 According to a deed dated May 9, 1927, a Permanent Fund of FIDE has been instituted by deed of trust, which is administered independently from the finances of FIDE. The assets and liabilities of the Permanent Fund are not part of the finances of FIDE. The administrative work is handled by three administrators as follows: by an administrator appointed by the Swiss Chess Federation, who is the manager of the Fund, and two administrators to be appointed, one by the Italian Chess Federation, and one by the British Chess Federation. The interest of the capital of the Permanent Fund accrues to FIDE towards its general expenses. 20.2 Donations to FIDE explicitly made to the Permanent Fund are to be paid into the Fund.
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