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Jerusalem main street , close to the Palestinian Red Crescent.
P.O. BOX 755
Tel:-02-2972289/90
Fax:02-2967716

facb@facb.gov.ps
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Responsibilities & Obligations of Audited Entities

Audited Entities & Stakeholders’ Responsibilities & Obligations to SAACB

 

In addition to legal provisions of effective laws in Palestine, SAACB law defines obligations of audited entities to SAACB as follows:

A. Obligations of audited entities to SAACB as prescribed in law 15/2004

I. Cooperation and independence of actions:

Article 12:

‘Actions of the Bureau shall not be interfered. All audited entities shall be required to cooperate fully in matters asked by the Bureau’.

II. Facilitate actions of SAACB staff:

Article 38:

‘Staff of the Bureau shall undertake actions at their office, offices of audited entities or in the field. Audited entities shall set proper places for them at their offices when asked to do so’.

III. Commence audit, request information/documents, reserve data:

Article 24:

‘The Bureau may audit accounts and documents at any entity. Staff of entities shall facilitate actions of auditors and provide them with all information asked. The Bureau may draw their attention to potential observations and obtain clarifications about reasons of delay in transactions execution’.

Article 25:

‘The Bureau may review all reports, information and data delivered by staff, as well as investigation reports for violations that compromise financial/administrative matters. The Bureau may ask all state entities for information and clarifications it wants to review’.

Article 29:

‘In order to undertake actions, the Bureau shall have the right to ask for, review or preserve any files, data, documents, information or photographs from audited entity where they are kept, including audited entities that consider all of which as confidential. The Bureau may summon whoever deemed suitable for hearing’.

IV. audited entities:

Article 31:

Office of PNA President and associated foundations.

Prime Minister, ministers and similar officials.

Legislative Council, including respective entities and departments.

The Judiciary and general prosecution with their members and staff.

PNA ministries and entities.

Security forces, the police and all security/military agencies.

Public entities, civil institutions, unions, associations and similar organizations of all kinds and levels.

Institutions and companies owned or contributed to by PNA, and institutions assisted by PNA donors.

Institutions and companies licensed to utilize or manage public facilities.

Local government entities and similar entities.

Provisions of this law shall apply to entities that have laws, regulations, bylaws or decisions for which special rules have been given.

Entities, departments and units to which provisions of this law apply shall be called ‘audited entities’.

V. Ministry of Finance obligations to SAACB:

Article 32:

‘Ministry of Finance shall provide SAACB with a report at the end of each quarter, which details and analyzes status of general budget, and includes financial developments and trends of revenues/expenses compared to expectations, key deviations explanation, cash flow analysis and impact of these developments to financial status of PNA. The report shall review suitable corrective procedures to restore financial balance’.

Article 33:

‘Ministry of Finance shall prepare preliminary consolidated accounts for general transactions and present them to the Bureau within six months from the end of fiscal year. Accounts shall show, inter alia, opening/closing balances of consolidated fund and private funds, and details of financial transactions undertaken to encounter financial deficit, if any, and net public domestic and foreign debt. Accounts shall also mention loans given during the year as well as associated and arising commitments’.

Article 34:

‘Based on preliminary accounts prepared according to article 33, Ministry of Finance shall prepare draft balance sheet and present it to the Bureau within one year from the end of fiscal year in order to review and present respective observations to the Legislative Council’.

VI. Obligations of financial auditors at all financial positions:

Article 35:

‘Financial auditors at financial positions shall inform the Bureau of all cases in which spending incorporates financial violations within a maximum two weeks from the date the violation took place’.

VII. Obligations of authorized spending officers at all financial positions:

Article 36:

‘Authorized spending officers at all financial positions and all other audited entities shall inform the Bureau of cases that involve misappropriation, steal, wasting, damage, fire, negligence or similar cases the day they are disclosed. They also shall inform the Bureau about respective decisions once given. They shall inform the Bureau of data and indicators necessary to follow up performance appraisal plan prepared by the Bureau, shall respond to observations made by the Bureau within one month from date of notifying these entities, and shall provide the Bureau with all laws, regulations, bylaws, decisions and instructions these entities give out’.

VIII. Entities undertaking investment projects:

Article 37:

‘Entities that undertake investment projects where PNA is a party or a member shall provide the Bureau with copies of contracts, agreements and tenders of each investment project, as well as any modifications made during implementation’.

 

IX. SAACB reports & observations:

Article 36, b:

‘All audited entities shall respond to observations made by the Bureau within one month from date of notifying these entities’.

Article 39:

‘All public entities, civil institutions, unions, associations and similar organizations of all kinds and levels, institutions and companies owned or contributed to by PNA, and institutions assisted by PNA donors mentioned in paragraphs 7 and 8 of article 31 shall present observations made by the Bureau to their boards of directors within one month from date of notifying them and to general assemblies when convened’.

X. Financial/administrative violations:

Committing financial & administrative violations

Audited entities have to thwart financial violations stated in article 40 and administrative violations stated in article 41:

1. Financial violations

Article 40:

Violations to financial rules and procedures set forth in related effective laws, regulations or bylaws.

Violations to rules, procedures and special provisions on execution of PNA budget law.

Violations to rules and special procedures on procurement, sales and warehouse management, including those related to effective financial and accounting regulations and provisions.

Conducts that result in unduly spending amounts of PNA funds, or losing financial rights for PNA or any of the audited entities.

Failure to provide SAACB with copies of contracts, agreements or tenders set forth in law.

Failure to provide SAACB with corroborating accounts and documents on designated times, or whatever paperwork, statements, decisions, minutes of meetings or documents SAACB requires, which the latter has the right to examine or review as per provisions of law.

2. Administrative violations

Article 41:

Failure to respond to SAACB observations or correspondence, or delay to respond within designated terms without accepted reason. Procrastination shall be regarded as failure to respond.

Conceal statements required by SAACB, failure to deliver them, regardless of nature, and failure to execute habeas corpus.

Unjustified delay to inform SAACB on time of actions taken regarding violations.

Negligence of duties of the office or public facility management.

Misconduct or negligence.

Violations to related instructions or decisions given by SAACB.

Reporting financial/administrative violations

Article 44:

‘Audited Entities shall inform the Bureau as soon as financial or administrative violations are disclosed, as well as any incident that causes financial loss to PNA or exposes fixed/movable assets to loss or damage. Due procedures shall be taken according to law without prejudice to any procedures to be taken by other entities’.

B. Obligations of Ministry of Finance

In addition to obligations regarding powers and tasks set forth in effective laws and regulations, certain obligations are incurred by SAACB:

I. In terms of draft balance sheet with terms set:

General budgeting law 7/1998:

‘On basis of preliminary accounts prepared as per article 65, the Ministry shall prepare the draft balance sheet and present it to the council of ministers for approval, and shall refer it to the Legislative Council within one year from the end of fiscal year for endorsement. A copy of the draft shall be sent to State Audit and Administrative Control Bureau’.

II. In terms of quarter reports and balance sheet:

Financial ordinance on financial reports (regular reports), article 143:

Paragraph 1:

‘The Ministry shall prepare at the end of each quarter detailed and analyzed report on budget status. The report shall include financial developments, trends of imports and expenses compared to expectations, cash flow analysis and impact of these developments on the financial status of PNA. The report shall review suitable corrective procedures proposed to restore financial balance. The minister shall present this report to council of ministers, Legislative Council and State Audit and Administrative Control Bureau’.

Paragraph 6:

‘The Ministry shall prepare draft balance sheets and present them to State Audit and Administrative Control Bureau within one year from the end of fiscal year’.




 
         

 

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