Article 19 of the Saudi Endowments Authority Law
المادة 19 من نظام الهيئة العامة للأوقاف
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 الهيئة ناظرة عليها.
ب - الإيرادات المتحصلة مقابل إدارة الأوقاف التي يعهد إلى الهيئة بإدارتها، وفقاً لما ورد في المادة (الرابعة عشرة) من هذا النظام.
ج - الإيرادات المتحصلة من النشاطات التي تدخل ضمن اختصاصاتها.
د - الإعانة الحكومية السنوية التي تقرر للهيئة في الميزانية العامة للدولة.
هـ - الأوقاف، والهبات، والتبرعات، والوصايا، والمساعدات المخصصة لها.
2- تودع أموال الهيئة في حسابات مستقلة لدى مؤسسة النقد العربي السعودي، أو أي من المصارف السعودية المرخص لها، ويصرف منها على الهيئة ومنسوبيها وفق اللائحة المالية التي يقرها المجلس.
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 19 explained in plain English
This article regulates the Authority's own budget, which is different from the endowments' budgets.
Paragraph 1: the Authority has an independent budget issued annually, and its resources are:
- A percentage set by the Board not exceeding 10% of the net annual income of the endowments of which the Authority is supervisor.
- Management fees for endowments the Authority is entrusted to manage, under Article 14, that is, the fee set by the Board after agreement with the endower or supervisor and not exceeding 10% of the net annual income of those endowments.
- Revenues from activities within its powers.
- The annual government grant set for it in the State's general budget.
- Endowments, gifts, donations, bequests and aid dedicated to it.
Paragraph 2: the Authority's funds are deposited in separate accounts at the Saudi Arabian Monetary Agency or any licensed Saudi bank, and spending on the Authority and its staff is made from them according to the financial regulations approved by the Board.
An important distinction: the percentage in the first item concerns endowments of which the Authority is supervisor, while endowments that have another supervisor and are managed by the Authority are subject to the management fee in Article 14. Both percentages are maximums, not fixed percentages.
This article comes after Article 18 on the accounting system and before Article 20, which regulates auditing the accounts of the endowments and the Authority. Anyone who wants to verify the percentage deducted from a particular endowment should consult a lawyer specializing in endowment cases.
Practical example
A public endowment in Jeddah is supervised by the Authority, with a net annual income of SAR 2 million. The Board sets a percentage that goes to the Authority's budget, and it may not exceed SAR 200,000, that is, 10% of net income.
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 19 of the Saudi Endowments Authority Law
How much does the Authority of Endowments take from the income of endowments it supervises?
A percentage set by the Board not exceeding 10% of the net annual income of the endowments the Authority supervises.
What are the funding sources of the General Authority of Endowments?
A percentage of the net income of endowments it supervises, endowment management fees, revenues from its activities, the annual government grant, and endowments, gifts, donations and bequests dedicated to it.
Does the Authority receive government support?
Yes. Its resources include the annual government grant set for it in the State's general budget.
Articles this article refers to
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 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 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.