Article 16 of the Saudi Law of Real Estate Development Fund
المادة 16 من نظام صندوق التنمية العقارية
The article requires the Board to appoint one or more licensed external auditors to audit the Fund's accounts, without prejudice to the General Court of Audit's jurisdiction.
Official text (Arabic)
This article has not been amended since the law was issued.
دون إخلال باختصاص الديوان العام للمحاسبة في الرقابة على حسابات الصندوق، يعين المجلس مراجع حسابات خارجيًّا (أو أكثر) من المرخص لهم بالعمل في المملكة، لتدقيق حسابات الصندوق ومعاملاته وبياناته وميزانيته السنوية وحسابه الختامي، ويحدد المجلس أتعابه. ويرفع تقرير مراجع الحسابات إلى المجلس، ويزود الديوان العام للمحاسبة بنسخة منه.
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 regulates financial oversight of the Fund, and combines two kinds of oversight:
- The General Court of Audit's oversight: the article provides that it does not prejudice the Court's jurisdiction in overseeing the Fund's accounts.
- External audit: the Board appoints one or more external auditors licensed to operate in the Kingdom.
The external auditor's task: auditing the Fund's accounts, transactions, data, annual budget and final account.
Fees: the Board sets them.
What happens to the report:
- The auditor's report is submitted to the Board.
- And the General Court of Audit is provided with a copy of it.
This means in practice that the Fund's accounts are subject to double oversight: an independent external audit chosen by the Board, and the oversight of the General Court of Audit, which the text expressly preserves, with the Court being informed of the results of the external audit through the copy it is provided with. The article does not specify the auditor's term of appointment or the number of audits, which is left to the Board.
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 Law of Real Estate Development Fund
Who audits the Real Estate Development Fund's accounts?
One or more external auditors appointed by the Board from those licensed to operate in the Kingdom, without prejudice to the General Court of Audit's jurisdiction.
To whom is the auditor's report submitted?
It is submitted to the Board, and the General Court of Audit is provided with a copy of it.
Who sets the auditor's fees?
The Fund's Board of Directors.
More articles on Fund Capital, Resources and Financial Oversight
- Article 11
The Article sets the Fund's capital at SAR 190,897,900,000, which may be increased by Council of Ministers decision, and lists its resources, including State support, cash flows, fees, and others.
1- رأس مال الصندوق (190.897.900.000) مائة وتسعون مليارًا وثمانمائة وسبعة وتسعون مليونًا وتسعمائة ألف ريال سعودي. وتجوز زيادته بقرار من مجلس الوزراء، بناء على اق
- Article 12
The Article provides that the Fund has an annual operating budget prepared on commercial bases and standards and financed from its resources, and that its fiscal year is the State's fiscal year.
1- يكون للصندوق ميزانية تشغيلية سنوية، تعد وفقاً للأسس والمعايير التجارية، وتمول من موارده المالية. 2- السنة المالية للصندوق هي السنة المالية للدولة.
- Article 14
The article gives the Fund's money, including the financing it provides, the benefits and guarantees established for the public treasury's rights, and provides that it is collected under the laws regulating this.
تتمتع أموال الصندوق، بما فيها التمويلات التي يقدمها، بالمزايا والضمانات المقررة لحقوق الخزانة العامة، وتُحصّل وفقاً للأنظمة المنظمة لذلك.
- Article 15
The article requires the Fund to open an account at the Saudi Central Bank, allows it to open accounts at licensed banks, and spend from them according to its approved budget.
يفتح الصندوق حساباً له في مؤسسة النقد العربي السعودي، ويجوز له فتح حسابات أخرى في أي من البنوك المرخص لها بالعمل في المملكة، ويصرف من هذه الحسابات وفق ميزانيته
- Article 17
The article requires the Board to issue the Implementing Regulations within ninety days of the Law's publication, publish them in the Official Gazette, and have them take effect from the date the Law takes effect.
يصدر المجلس اللائحة خلال (تسعين) يوماً من تاريخ نشر النظام، وتنشر في الجريدة الرسمية، ويُعمل بها من تاريخ العمل بالنظام.
- Article 18
The article provides that this Law replaces the Real Estate Development Fund Law issued by Royal Decree No. M/23 dated 11/6/1394 AH, and takes effect ninety days after its publication in the Official Gazette.
1- يحل هذا النظام محل نظام صندوق التنمية العقارية الصادر بالمرسوم الملكي رقم (م / 23) وتاريخ 11 / 6 / 1394هـ. 2- يُنشر النظام في الجريدة الرسمية، ويُعمل به بعد
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.