Article 18 of the Saudi Endowments Authority Law
المادة 18 من نظام الهيئة العامة للأوقاف
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 النظام.
2 - تضع الهيئة نظاماً ماليًّا محاسبيًّا استرشاديًّا للأوقاف التي لا تكون ناظرة عليها أو مديرة لها؛ لمساعدة النظار في حفظ أموال الأوقاف واستثماراتها.
3 - تنظم اللائحة المالية للهيئة جميع ما له علاقة بالنواحي المالية، ومن ذلك ما يأتي:
أ - الحسابات.
ب - الإيرادات، والنفقات.
ج - تحصيل إيرادات الأوقاف التي تكون الهيئة ناظرة عليها أو مديرة لها، وإنفاقها على مصارفها؛ وفقاً لشروط الواقفين.
د - الميزانية، والحساب الختامي.
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 18 explained in plain English
This article deals with the accounting systems for endowments, and distinguishes between two kinds of endowments:
1. Endowments the Authority administers or manages: the Authority sets for them an accounting and financial system consistent with their nature and ensuring the preservation of their funds and investments, as the Authority's Law provides.
2. Endowments the Authority does not administer or manage: the Authority sets for them an advisory accounting and financial system, the purpose of which according to the text is to help administrators preserve the endowments' funds and investments. Describing it as advisory means it is a reference to be drawn on, and the text does not state that administrators are bound by it.
3. The financial regulations: the Authority's financial regulations govern everything relating to financial matters, including:
- Accounts.
- Revenues and expenditures.
- Collecting the revenues of endowments the Authority administers or manages, and spending them on their purposes in accordance with the endowers' conditions.
- The budget and the final account.
The article does not state the details of these systems or the regulations, but leaves them to what the Authority sets. It comes after Article 17 on the fiscal year, and before Article 19, which specifies the resources of the Authority's own budget.
An administrator (nazir) of a private endowment who wants to organize his accounts may benefit from the advisory system, and may consult a lawyer specializing in endowment cases or an accountant as needed.
Practical example
Sarah is the administrator of a small family endowment in Khobar that the Authority neither administers nor manages. She can refer to the advisory accounting system the Authority sets to organize recording the endowment's revenues and expenses and preserving its funds.
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 18 of the Saudi Endowments Authority Law
Is the administrator of a private endowment bound to follow the Authority's accounting system?
For endowments the Authority neither administers nor manages, the Authority sets an advisory system to help administrators, and the text does not state that they are bound by it.
What do the Endowments Authority's financial regulations govern?
They govern accounts, revenues and expenditures, collecting endowment revenues and spending them in accordance with the endowers' conditions, and the budget and final account.
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 16
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.
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 الحرم
- 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 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.