| 14.1 | Fiduciary duties of Authority |
| 14.1.1 | The Authority must, as contemplated in section 50 of the Public Finance Management Act: |
| 14.1.1.1 | exercise the duty of utmost care to ensure reasonable protection of the assets and records of the Authority; |
| 14.1.1.2 | act with fidelity, honesty, integrity and in the best interest of the Authority in managing the financial affairs of the Authority; |
| 14.1.1.3 | on request, disclose to the Minister all material facts, including those reasonably discoverable, which in any way may influence the decisions of the Minister; and |
| 14.1.1.4 | Seek, within the sphere of influence of the Authority to prevent any prejudice to the financial interests of the state. |
| 14.1.2.1 | Act in a way that is inconsistent with the responsibilities assigned to the Authority in terms of the Public Finance Management Act; or |
| 14.1.2.2 | Use the position or privileges of, or confidential information obtained for personal gain or to improperly benefit another person. |
| 14.1.3.1 | Disclose to the Authority any direct or indirect personal or private business interest that that member or any spouse, partner or close family member may have in any matter before the Authority; and |
| 14.1.3.2 | Withdraw from the proceedings of the Authority when that matter is considered, unless the Authority decides that the member's direct or indirect interest in the matter is trivial or irrelevant. |
| 14.2 | Financial and general responsibilities of Authority |
| 14.2.1 | The Authority must ensure that the Authority has and maintains: |
| 14.2.1.1 | Effective, efficient and transparent systems of financial and risk management and internal control: |
| 14.2.1.2 | A system of internal audit under the control and direction of an audit committee complying with the operating in accordance with regulations and instructions prescribed in terms of sections 76 and 77 of the Public Finance Management Act: |
| 14.2.1.3 | An appropriate procurement and provisioning system which is fair, equitable, transparent, competitive and cost-effective; and |
| 14.2.1.4 | A system for properly evaluating all major capital projects prior to a final decision on the project, |
| 14.2.2 | The Authority must take effective and appropriate steps to: |
| 14.2.2.1 | Disburse funds in terms of section 14 of the Act all revenue due to the Authority; and |
| 14.2.2.2 | Prevent irregular expenditure, fruitless and wasteful expenditure, losses resulting from criminal conduct, and expenditure not complying with the operational policies of the Authority: and |
| 14.2.2.3 | Manage available working capital efficiently and economically. |
| 14.2.3 | The Authority is responsible for the management, including the safeguarding, of the assets and for the management of the revenue, expenditure and liabilities of the Authority. |
| 14.2.4 | The Authority must comply with any tax, levy, duty, pension and audit commitments as required by legislation. |
| 14.2.5 | The Authority must take effective and appropriate disciplinary steps against any employee of the Authority who: |
| 14.2.5.1 | Contravenes or fails to comply with a provision of the Act: |
| 14.2.5.2 | Commits an act which undermines the financial management and internal control system of the Authority; or |
| 14.2.5.3 | Makes or permits an irregular expenditure or a fruitless and wasteful expenditure. |
| 14.2.6 | The Authority is responsible for the submission of all reports, returns, notices and other information to Parliament or the Minister, as may be required by the Public Finance Management Act. |
| 14.2.7 | The Authority must comply with the provisions of the Public Finance Management Act and any other applicable legislation. |
The Authority is financed from-
| 14.3.1 | The skills development levies collected in its sector; |
| 14.3.2 | Moneys paid to it from the National Skills Fund; |
| 14.3.3 | Grants, donations and bequests made to it; |
| 14.3.4 | Income earned on surplus moneys deposited or invested; |
| 14.3.5 | Income earned on services rendered in the prescribed manner; and |
| 14.3.6 | Money received from any other lawful source. |
| 14.4.1 | The money received by the Authority must be paid into a banking account at any registered bank and may be invested only in- |
| 14.4.1.1 | Savings accounts, permanent shares or fixed deposits in any registered bank or other financial institution: |
| 14.4.1.2 | Internal registered stock contemplated in section 21 (1) of the Exchequer Act, 1975 (Act 66 of 1975); and |
| 14.4.1.3 | Any other manner approved by the Minister. |
| 14.4.2 | All investments must comply with the approved investments policy of the Authority and be consistent with relevant legislation |
| 14.5 | Purpose for which funds may be used |
The moneys received by the Authority may be used only in the prescribed manner and in accordance with any prescribed standards or criteria and to—
| 14.5.1 | Fund the performance of its functions; and |
| 14.5.2 | Pay for its administration within the prescribed limit. |
| 14.6 | Financial records of Authority |
| 14.6.1 | The Authority must, in accordance with the standards of generally accepted accounting practice- |
| 14.6.1.1 | Keep proper record of all its financial transactions, assets and liabilities; and |
| 14.6.1.2 | Within six months after the end of each financial year, prepare accounts reflecting income and expenditure and a balance sheet showing its assets, liabilities and financial position as at the end of that financial year. |
| 14.6.2 | The Authority must prepare— |
| 14.6.2.1 | Annual budgets, annual reports and financial statements in accordance with Chapter 6 of the Public Finance Management Act; and |
| 14.6.2.2 | Furnish the Director-General with copies of all budgets, reports and statements contemplated above and any other information that it is required to submit in terms of the Public Finance Management Act. |
| 14.7.1 | The Auditor-General must— |
| 14.7.1.1 | audit the accounts, financial statements and financial management of the Authority; and |
| 14.7.1.2 | report on that audit to the Authority and to the Minister and in that report express an opinion as to whether the Authority has complied with the provisions of the Act, and this Constitution, relating to financial matter. |
| 14.7.2 | Sub-clause 14.7.1 does not preclude the appointment of some other auditor to audit the accounts and financial statements of the Authority. |
| 14.8 | Signatories to accounts |
| 14.8.1 | The Authority must appoint three signatories to authorise any payment on their behalf. |
| 14.8.2 | At least two of the three signatories must be required to authorize any payment by the Authority. |
| 14.8.3 | All payments must be made in terms of the relevant legislation and policies of the Authority. |
