Last Tuesday, the Cabinet approved the rules for financial oversight of endowment accounts that are under the supervision or management of a government entity, in order to enhance the protection of assets and ensure their investment and the sustainability of their resources.
The General Authority for Endowments explained that the new rules come to consolidate the principles of governance, transparency and accountability in the management of endowment funds, by setting clear controls for financial oversight, ensuring compliance with the conditions of the donors, and preserving assets by improving their management and investment mechanisms, in addition to promoting integrity and responsibility in dealing with endowment accounts.
The authority added that the regulation aims to raise the level of financial discipline in government agencies supervising endowments, and to unify the minimum requirements for monitoring their resources and expenditures, in order to support the efficiency of managing funds and enhance the ability to preserve and develop them.
Separating the financial accounts of endowments from government entities
The rules stressed the need to avoid mixing government funds with endowment funds by preparing separate financial statements for each endowment, which allows for clarity of the financial position of assets and resources, increases the reliability of accounting information and data, as well as supporting the efficiency of operations and enhancing disclosure and accountability.
The regulations also included organizing financial transactions related to endowments according to principles that ensure fairness and transparency, and guarantee competitive and fair prices, while giving priority to local products and services and small and medium enterprises.
The rules also define the basic requirements for financial oversight of endowment accounts, in a way that complements the systems and procedures in place within government agencies, and enhances the integration of the oversight system without compromising existing regulatory controls.
Enhancing the sustainability of the endowment sector
The Authority affirmed that the application of these rules would support the financial sustainability of endowments, and enhance their ability to develop their resources and maximize their contribution in developmental, economic and social fields, through more efficient management of endowment assets and resources.
This approach comes within the framework of efforts to develop the regulatory environment for the endowment sector and enhance its role in national development, in line with the objectives of the Kingdom’s Vision 2030, and to promote the utilization of the long-term economic and social potential of endowments.
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