Article 16 of the Saudi Endowments Authority Law
المادة 16 من نظام الهيئة العامة للأوقاف
The article requires the Authority to keep separate accounts and a separate budget for endowments it supervises or manages, separate accounts for the endowments of the Two Holy Mosques, and to deposit endowment funds in separate accounts at the Saudi Arabian Monetary Agency or licensed banks.
Official text (Arabic)
This article has not been amended since the law was issued.
1- تحتفظ الهيئة بحسابات خاصة للأوقاف التي تكون ناظرة عليها أو مديرة لها؛ تكون مستقلة عن حساباتها، وبميزانية خاصة بها.
2 - تحتفظ الهيئة بحسابات خاصة بأوقاف الحرمين.
3 - تودع أموال الأوقاف - التي تكون الهيئة ناظرة عليها أو مديرة لها - في حسابات مستقلة لدى مؤسسة النقد العربي السعودي، أو أي من المصارف السعودية المرخص لها.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 16 explained in plain English
This article sets a basic rule in protecting endowment funds: separating endowment funds from the Authority's funds. It contains three provisions:
- Separate accounts and budget: the Authority keeps special accounts for the endowments of which it is supervisor or manager, separate from its own accounts, and these endowments have a budget of their own.
- Endowments of the Two Holy Mosques: the Authority keeps special accounts for the endowments of the Two Holy Mosques.
- Place of deposit: the funds of the endowments the Authority supervises or manages are deposited in separate accounts at the Saudi Arabian Monetary Agency or at any licensed Saudi bank.
Why does this matter? Because endowment money is dedicated to what the endower stipulated, and mixing it with the funds of the body in charge of it could lead to its being spent in the wrong way. Accounting and banking separation makes it possible to know each endowment's revenues and expenses and makes it easier to monitor them.
This article comes after Article 15, which allows the Authority to invest the assets of endowments it supervises and set aside percentages of their revenues and surpluses; separate accounts are what show those set-asides and what is returned of them. It is followed by Article 17 on the Authority's financial year.
An endower or beneficiary who wants to look at the position of a particular endowment's account would do best to consult a lawyer specializing in endowment cases about the legal way to do so.
Practical example
The Authority supervises a public endowment in Taif and manages a family endowment in Abha for another supervisor. Each of the two endowments has a separate account at one of the licensed Saudi banks, and their revenues may not be mixed with the Authority's own operating accounts.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 16 of the Saudi Endowments Authority Law
Does the Authority of Endowments mix endowment funds with its own money?
No. The Authority keeps special accounts for the endowments it supervises or manages, separate from its own accounts, and with a budget of their own.
Where are endowment funds deposited?
In separate accounts at the Saudi Arabian Monetary Agency or any licensed Saudi bank.
Do the endowments of the Two Holy Mosques have special accounts?
Yes. The article provides that the Authority keeps special accounts for the endowments of the Two Holy Mosques.
More articles on Authority Finances and Endowment Accounts
- Article 13
The article sets the objectives of the internal control and audit committee: protecting the Authority's funds, sound control, accurate financial data and verifying compliance with the laws, and refers the details to the control and audit regulations.
تهدف لجنة الرقابة والمراجعة الداخلية إلى حماية أموال الهيئة وممتلكاتها، وضمان سلامة أنظمة الرقابة الداخلية وفاعليتها، ودقة البيانات المالية والسجلات المحاسبية و
- Article 14
The article allows the Authority a fee for managing endowments that have another supervisor, set by the Board after agreement with the endower or supervisor, at no more than 10% of the endowments' net annual income.
تحصل الهيئة على مقابل أتعاب نظير إدارتها للأوقاف التي لها ناظرٌ غيرها وعُهد إليها إدارتها، ويحدد المجلس هذا المقابل بعد الاتفاق مع الواقف أو الناظر، على ألا تزي
- Article 17
The article makes the Authority's financial year the State's financial year, with the exception that its first financial year starts from the date the law takes effect.
السنة المالية للهيئة هي السنة المالية للدولة، واستثناءً من ذلك تبدأ السنة المالية الأولى من تاريخ نفاذ هذا النظام.
- Article 18
The article requires the Authority to set an accounting and financial system for endowments it administers or manages, an advisory system for others to help administrators, and refers financial matters to the Authority's financial regulations.
1- تضع الهيئة نظاماً ماليًّا محاسبيًّا للأوقاف التي تكون ناظرة عليها أو مديرة لها؛ يتوافق مع طبيعتها، ويضمن حفظ أموال الأوقاف واستثماراتها، وفقاً لما يقرره هذا
- Article 19
The article sets the sources of the Authority's independent budget, including up to 10% of the net income of endowments it supervises, management fees and the annual government grant, and how its funds are deposited and spent.
1 - تكون للهيئة ميزانية مستقلة تصدر سنويًّا، وتتكون إيراداتها من المصادر الآتية: أ - نسبة يحددها المجلس لا تتجاوز (10٪) من صافي الدخل السنوي للأوقاف التي تكون ا
- Article 20
The article requires the Board to appoint one or more licensed auditors to audit the accounts of the endowments and the Authority, with joint liability, reporting to the Board and a copy to the General Auditing Bureau.
مع عدم الإخلال بحق ديوان المراقبة العامة في الرقابة على حسابات الهيئة؛ يعين المجلس مراجع حسابات (أو أكثر) من الأشخاص ذوي الصفة الطبيعية أو الاعتبارية المرخص لهم
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.