Section 6. Budget and accounts.

Article 15º. -Action plan.

15.1.- The Board of Trustees will approve and remit to the Protectorado, during the final three months of each financial year, an action plan in which will be reflected the objectives and activities which it is intended to develop in the following financial year.

15.2.- The Foundation's action plan will be formulated by the President and sent to the Board of Trustees for their examination, approval and remission to the Protectorado within the legally established timeframe and for it to become effective on 1st January of the following year. The Board of Trustees will remit to the Protectorado the action plan, acompanied by the certificate showing the approvement of the Board of Trustees, issued by the Secretary and approved by the President, and a list of those Trustees attending the session.

15.3.- The action plan will contain information identifying each of their own activities and any commercial activities, the estimated expenses for each of them and the revenue and other resources envisaged, as well as any other indicator which allows the level of realisation of each activity or the level of achievement of the objectives to be to detailed in the report.

15.4.- The Foundation's revenue can come from the yields from its own dotational assets or non-dotational such as donations, legacies and inheritances from the Trustee-Founder, from any of the other Trustees or from any person who so wishes; and from donations from any public or private legal entity; from grants from the public administration or its autonomous or dependent organisations. At the same time, the Foundation can obtain yields from financial activities compatible with the objectives of the Foundation within the terms and limits set out in these Statutes and the relevant legal system.

15.5.- When the needs derived from the fulfilment of the Foundation's objectives demand, financial resources can also be obtained through credit operations, wth a previous financial viability study, a supporting report and the agreement of the absolute majority of the Board of Trustees, notwithstanding the limits and determinants established by the Protectorado and the legal applicable regulations.

15.6.- If the action plan is not approved in time to come into effect on 1st January, the plan from the previous financial year will automatically be extended until the approval of the new budget.

15.7.- The Board of Trustees will approve, on the proposal of the President, budgetary modifications as long as the balance is maintained between income and expenditure.

15.8.- If a financial year closes with a deficit, the action plan for the following financial year should have as its first objective the rebalancing of the accounts. If it closes with a surplus, this surplus will be added to the reserves or be used to carry out projects linked to the Foundation's objectives.

Article 16º.-Accounts.

16.1.- Within the first six months of each financial year the documents referred to in article 21 of Ley 8/1998, dated 9th December for Foundations of the Comunidad Valenciana and other applicable rules, will be approved by the Board of Trustees and presented to the Protectorado.

16.2 .- The Foundation will fulfil the accounting obligations detailed at any time in the rules for the adjustment of the General Plan of Accountability for non-profit making entities and the model of the adjustment plan for non-profit making entities approved by Royal Decree 1491/2011 and dated 24th October.

16.3.- If income is gained from financial activities, the accounts will be adjusted according to the Código de Comercio and to article 11 of the Ley 49/2002 dated 23rd December, regarding tax regulations for non-profit making entities and tax incentives for sponsorship.

16.4.- In any case, the Foundation will keep,as a minimum, a daily journal and a Book of Inventories and Annual Accounts to ensure an ordered accouting system and one appropriate to its activities, thus allowing all operations carried out to be followed chronologically.

16.5.- In all assumptions foreseen by law and , where appropriate, from the cessation of the President-Founder's term of office, the Foundation's annual accounts will be subject to an external audit.

 

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