KINGDOM OF SAUDI ARABIA COUNCIL OF HIGHER EDUCATION
Statute Governing
Financial Affairs at Universitie·s
1416 H (1995)
Any disbursement is to be made based only on prior authorization, and any authorization is to be established within the limits of the provisions included in the budget, or after modifying it through a decision from the relevant authority.
Article 8
University funds shall be deposited under the University's name in the Saudi Arabian Monetary Agency or any of its branches in the kingdom, and it is possible to deposit these funds in one bank or more if deemed necessary in the interest of work.
Chapter Two: The Procurement and Mandating of Works
Article 9
In reference to the procurement and mandating of works, the president of the University has the following authority:
a. Issuance of tenders for the procurement and mandating of works, that shall not exceed 15 million riyals; if it .exceeds this amount; it is to be referred to the Chairman of the University Council.
b. The direct assignment for carrying out works and procurement with a limit of one million riyals.
c. To approv~.a single existing bid within the limit of the aforementioned amounts when no other bids have been tendered and circumstances do not allow extending the bidding process.
Article 10
The President of the University may grant some of his financial authority related to the procurement and mandating of works· to the vice-presidents, deans, directors of the institutes and chairmen of the departments and others at the university in accordance with the government system regulating procurement and implementation of projects, provided that this authorization is hierarchically obtained.
Article 11
If anything regarding the procurement and mandating of works is not mentioned in these regulations, the government procurement system, as defined by Royal Decree Ml14, dated 7/4/1397H, will apply.
Article 12
Taking into consideration the rules that govern leasing university property to outside entities, renting property from outside entities and demolishing government buildings, the President of the University, or whoever is so authorized by him, has the authority to:
a. Lease university property and renew or tenninate rental contracts;
b. Order demolition of buildings that are severely dilapidated or deemed unsafe to inhabit;
c. Rent real estate from outside entities.
Chapter Three: Warehouses
Article 13
An inventory of all university assets is made at least every two years under the auspices of a committee fonned by the President of the University, in order to correlate existing assets with the University's records. The results are to be reported to the President of the University.
Chapter Four: Money Collection and Disbursement
Article 14
It is possible to disburse a permanent loan for every college, institute, center, suPpo.rting deanship, or administration at the university by decision of the University president, or whoever is so authorized by him, that specifies the sections in which this loan shall be spent.
This loan shall be under the oversight of the Treasurer or the Director of Administration.
Article 15
The President of the University, or whoever is so authorized by him, shall assigll a 'person to be in charge of conducting unannounced inventories of pennanent loans.
Article 16
A temporary loan may be disbursed for specific purposes by a decision of the President of the University or whoever is so authorized by him. Records on the use of the disbursement must be kept.
Article 17
Taking into consideration Articles 47 and 48 of these regulations, the financial disbursement, and collection of revenues generated by university property shall be in accordance with the financial regulations for budgeting and accounting.
Article 18
Any revenue not mentioned in these regulations shall be collected by the university and deposited in the Ministry of Finance account at the Saudi Arabian Monetary Agency. All records of deposits and withdrawals must be kept.
If anything is not mentioned regarding financial disbursement and collection, it is subject to financial regulations for budgeting and accounting.
Chapter Five: The Financial Auditing
Financial auditing before the disbursement Article 20
Based on the University President's nomination, the University Council shall appoint a Financial Auditor, along with the necessary number of assistants. The term of the position is three years and is subject to renewal. The Financial Auditor will report to the University Council.
Article 21
The Financial Auditor andlor his assistant should be a competent, well qualified, and honest Saudi person.
Article 22·
The Financial Auditor should make sure that all financial disbursements and collection processes run according to the system of the Hig~her Education Council and relevant regu,lations.
Article 23
. ' .
No amount of money shall be disbursed without the permission of the Financial Auditor . whether it was a payment order, a check or a remit.
Article 24
No amount of money shall be disbursed unless it is in accordance with the original documents.
If it shall be disbursed in accordance with copies of the documents, it should follow the resolutions in effect.
Article 25·
The Financial Auditor should make sure that any disbursement be listed under the university budget sections, and that there is an official disbursement order from the relevant authority. He should not sign the documents if they do not meet University regulations for budgeting and accounting. A reason must be given for a refusal to sign any document.
Article 26
The Financial Auditor should review the accounting records at least once every three months.
He should also make sure that all accounting records are in accordance with these regulations.
Article 27
The Financial Auditor has the following duties:
a. He should make sure that all real estate and funds of the university are used for the purpose they were originally allocated for, and that the various authorities concerned have the necessary means to exploit these funds appropriately.
b. He should follow up on the financial regulations in order to verify their implementation, appropriateness, and adequacy.
c. He should inspect all inventories regularly every 3 months in order to ensure that funds have been spent effectively.
d. He should supervise the implementation of warehouse rules, and supervise the inventory process.
Article 28
The Financial Auditor should be a member of the Tender Committee at the university.
Article 29
The Financial Auditor and whoever is assigned to supervise the warenouses have access to all information and data necessary to do their jobs appropriately. All other authorities at the university should assist them to achieve this.
Financi~l auditing after disbursement of funds Article 30
The University President will appoint a Financial Auditor, along with the necessary number of assistants, to a one-year term:~ This will be an independent auditor who will exercise the full rights and duties of an independent auditor in any business environment. The Auditor's work will be in addition to that of the General Auditing Bureau.
Article 31
The external Financial Auditor cannot be a member of any council nor occupy a position at the university.
Article 32
The external Financial Auditor shall have access to all information and data necessary to do his job appropriately, and he should also inspect all university inventories.
Article 33
In case the external Financial Auditor is prevented from doing his job, he should report that in writing to the University Council and send a copy to the University President - in order that an immediate decision be taken about it.
The external fmancial auditor should review the university accounting processes, and report to the President of the University every 3 months.
Article 35
When any embezzlement is discovered, the report that to the President of the University that a proper decision can be made.
external financial and send a copy to
auditor should immediately the University Council so
Article 36
The external financial auditor should audit the final annual accounts of the university, which includes the financial state of the university, and report to the University Council no more than 2 months following the end of the fmandal year. He should also provide feedback regarding the fmancial state of the university.
Article 37
The University Council shall discuss the final armual accounts of the university, before reporting them to the Prime Minister, and sending copies of them to the Ministry of Finance and the General Auditing Bureau .
. ' Chapter Six - The Accounts Article 38
The university is to have an accounting system that complies with the financial instructions of the budget. It should also help prepare reports to the management and all other authorities concerned ..
Article 39
The treasurer cannot keep funds, which do not belong to the university, in the university account. All the funds available in the university account should belong only to the university.
In case there is a deficit, the treasurer shall be held responsible for it.
Chapter Seven: Student Allowances and Financial Aid
Article 41
Saudi graduate and undergraduate regular students who are unemployed are allotted stipends and financial aid as follows:
A. Undergraduate Program
1. A monthly stipend of SR 1000 for each student enrolled in the scientific specialization and SR 850 for each student enrolled in the academic majors.
2. A monthly stipend for each blind student equal to the salary of grade five/step one of a Qura'n relator in addition to reading and other aids for the blind.
3. A reward of SR 1000 for a student who achieves a rating of excellent in each academic year.
B. Graduate Programs
1. A monthly stipend of SR 900.
2. An annual allowance equal to one month's pay for books and references on condition that issuance of the allowance is confined to the official period determined to complete the program with no extensions considered.
3. A lump sum ofSR 3000 for MA students and SR 4000 for PhD students to cover typing costs of thesis/dissertation.
4. A monthly stipend for blind students equal to the salary of grade five/step one of a Qura'n relator in addition to reading and other aids for the blind.
Article 42
A student who is awarded a government scholarship for a graduate or undergraduate program abroad is awarded the following:
a. A monthly stipend equal to what a Saudi student receives.
b. A reward of SR 1000 for a student who achieves a rating of excellent in each academic year.
c. An annual allowance equal to one month's pay for books and references on condition that issuance of the allowance is confined to the official period determined to complete the program with no extensions considered.
d. A lump sum of SR 3000 for MA students and SR 4000 for PhD students to cover typing costs of thesis/dissertation.
e. An economy class discounted air ticket to the nearest airport of his point of origin on condition that he has not availed himself of an airway ticket from another party.
Article 43
The University may provide housing for graduate or undergraduate regular studenst if the university has available housing.
Based on the recommendation of the Faculty and Deanship Councils and the approval of the University President, the university shall issue an economy return ticket for one journey during an academic program if the program requires out-of-town travel.
Article 45
The University may provide subsidized meals to the students. The University Council determines the amount a student pays for a meaL
Article 46
By decision of the University President, regular students enrolled at the various university colleges may be employed. The jobs should be pertinent and should not conflict with the students' schedules. This employment is governed by the following criteria:
1. Availability of funding.
2. Employment is hourly based or temporary status.
3. The job reward should not exceed SR 1000 monthly.
Chapter Eight: Rules and purposes of expenditure of university revenues . earned from conducting research, studies and scientific servi"?es.
Article 47
The university may generate revenue by cotiducting paid studies or providing scientific services to Saudi parties. Such revenue shall be deposited in a separate account from which they are expended for the following purposes:
1. Development of scientific research, scientific services and training at the university as per the rules governing them.
2. Expenditure to cover the costs of the above-mentioned studies, research, and scientific services as per the following rules:
a. The university may conduct research, studies and scientific services for Saudi parties as per a written contract or agreement which specifies the work to be carried out, its parties, the period of time in which it will be carried out, the conditions, the cost, the methods of payment, the number of participants, and the project supervisor, taking into consideration the suitability of the specialization of the participants to the nature of the project.
b. A budget which details all direct and indirect costs is stated for each contract or agreement whether these are labor or material costs. The costs will also include payments and expenses for consultants and all other costs incurred to cover all other required actions to be carried out by subcontractors.
c. Costs are charged as per the payment conditions stated in the written contracts and agreements. When collected, they are deposited in an independent account from which disbursement for other defined purposes is carried out.
d. Remaining balances from funds appropriated for long-term projects are carried forward at the end of each year until full implementation and conclusion of these projects is achieved technically and fmancially.
e. By decision of the University Council, savings from revenue for technically and financially concluded studies and services are deposited in a separate account for disbursal.
f. Based on the recommendation of the University President, the University Council may approve contracting researchers and employees from the university or from outside it to execute funded projects on condition that the period of this assignment is restricted to the period of contract, or service or study.
g. Based on the recommendation of the University President, the University Council may approve contracting consultants from the Kingdom or from outside it to provide consultancy as per a contract which specifies the period of
consultation, the nature of the work to be carried out, the amount of
compensation, and housing, travel, living and consultancy costs based on what is stated in the contract for the provided service.
h. Revenues of these services and studies are logged in and deposited into independent account under the university name opened in the Saudi Arab Monetary Fund or one of its branches or the bank the university deals with.
1. Disbursement from the independent account is processed upon the approval of·
the University President or whomever he authorizes based on the
recommendation ofthe head ofthe concerned party and the project supervisor.
This is done as per official documents subject to auditing of the university comptroller.
J. In accordance with the governing procedures of loan allocation, the University President or the person he authorizes may approve a long-term loan to disburse from for the project based on the request of the project supervisor and the endorsement of the Dean or the head of the concerned party on condition that the loan is settled periodically.
k. Taking into consideration the estimated budget of the project, awards of researchers and other participants in performing the work are disbursed as per the following:
1) University employees: The actual work hours and the hourly rate within the contract budget on condition that payment does not exceed the amount of their salary for four months annually.
2) Non-KAU consultants, researchers and employees: As per the amounts stated in their contracts.
participants in conducting training and scientific lectures are financially awarded in accordance with the rules governing extracurricular lectures stated in the employment rules and regulations of Saudi teaching staff.
m. At the conclusion of the research and study, the university claims ownership of assets and capital items used for the project.
n. The independent accounts of services, studies and research are audited annually by the university accounts auditor who prepares a report about these accounts and submits it to the University Council.
Chapter Nine: Rules governing endowments, testaments, grants, and donations
Article 48
The University Council may accept endowments, testaments, grants, and donations. The Council may also accept donations for specific purposes or donations with attached conditions if these conditions and purposes are consistent with the university mission. These donations shall be deposited in a seParate account to be spent for the purposes they were granted.
Disbursement is done as per the following rules:
1. The donations are deposited in a separate university account in the Saudi Arab Monetary Fund or one of the local banks. The balanced'f this accOlmt is carried forward annually.
2. (Value of) donated assets and capital items are estimated at the time they are received.
3. All endowments, testaments, grants, and donations are registered in a special register.
4. Disbursement from endowments, testaments, grants, and donations is carried out as per the following rules:
a. If the endowments, testaments, grants, and donations are cash or assets and the donor specifies the methods and means to benefit from them, they are expended for the specific purposes stated by the donor.
b. If the endowments, testaments, grants, and donations are cash or assets and the donor does not specify the methods and means to benefit from them, the University Council determines the methods and means to benefit from them.
c. Disbursement is effected from the separate account as per official documents and is subject to auditing by the financial auditor.
5. The University President has the authority to approve disbursement from this separate account of one million Saudi riyals or less; amounts exceeding that are approved by the University CounciL
6. The financial auditor shall review and examine the records of endowments, testaments, grants, and donations and the independent account periodically. He shall submit a report regarding this to the University President.
7. At the end of each financial year, the account reviewer shall ensure that donated assets and capital items are within university property as per the established accounting rules.
He shall submit a report regarding this to the University Council.
Chapter Ten: General Rules
Article 49Policies and procedures, bylaws and executive directives and .circulars of Council of Higher Education and Universities are implemented for all matters not listed in the above Statute.
Article 50
This Statute shall nullify the existing statutes of the universities.
Article 51
With full adherence to the rules and regulations of the Council of Higher Education and Universities and this Statute, universities shall establish detailed implementation codes and procedures for this Statute.
Article 52
This Statute shall come into effect two months after the date of its approval.
