Skills Development Act, 1998 (Act No. 97 of 1998)RegulationsStandard Constitution of SETA Regulations17. Finances |
(1) Sources of finance
The sources of finance for funding the activities of the SETA as set out in section 14(1) of the Act are—
| (a) | 80 per cent of the skills development levies, interest and penalties collected in respect of the SETA, allocated in terms of sections 8(3)(b) and 9(b) of the SDLA; |
| (b) | grants, donations and bequests received; |
| (c) | income earned on surplus money deposited or invested; |
| (d) | income earned on services rendered; and |
| (e) | money received from any other legitimate source. |
(2) Investments
The money received by the SETA in terms of section 14(2) of the Act must be paid into a bank account at any registered bank and may only be invested in—
| (a) | savings accounts, permanent shares or fixed deposits in any registered bank or other financial institution provided for in terms of the PFMA; and |
| (b) | any other manner approved by the Minister. |
(3) Purpose for which funds may be used
The money received by the SETA may be used only in accordance with section 14(3) of the Act in order to—
(a) fund the performance of its functions; and
(b) pay for its administration.
(4) Financial records of SETA
| (a) | The Accounting Authority must— |
| (i) | prepare annual budgets, Annual Reports and financial statements in accordance with Chapter 6 of the PFMA; |
| (ii) | furnish the Director-General with copies of all budgets, reports and statements contemplated in this Constitution and any other information that the Accounting Authority must submit in terms of the PFMA; |
| (iii) | keep full and proper records of the SETA's financial affairs; |
| (iv) | prepare financial statements for each financial year in accordance with generally accepted accounting practices and in line with the requirements of the Auditor-General; |
| (v) | submit the financial statements referred to in item 13(4)(a)(iv) within two months after the end of the financial year to the Auditor-General for auditing; and |
| (vi) | within five months of the end of a financial year and after adoption by the Accounting Authority, submit to the Minister the Annual Report on its activities during that financial year, the financial statements for that financial year after the statements have been audited and the Auditor-General's report on those statements. |
| (b) | The Annual Report and financial statements referred to in item 13(4)(a)(i) must— |
| (i) | be a fair representation the SETA's state of affairs, its business, its financial results, its performance against predetermined objectives and its financial position as at the end of the financial year in question; |
| (ii) | include particulars of any— |
| (aa) | material losses through criminal conduct or irregular, fruitless or wasteful expenditure and must reflect criminal proceeding instituted or disciplinary steps taken as a consequence of such losses; |
| (bb) | losses recovered or written off; |
| (cc) | financial assistance received from the State and any commitments made by the State on its behalf; and |
| (dd) | any other matters that the Accounting Authority deems necessary to include. |
(5) Audit of SETA
(a) The Auditor-General must—
| (i) | audit the accounts, financial statements and financial management of the SETA in terms of the PFMA and other relevant legislation; and |
| (ii) | report on that audit to the Accounting Authority and to the Minister and, in that report express an opinion as to whether the SETA has complied with the provisions of the PFMA, the Act and this constitution with regard to financial matters. |
| (b) | Paragraph (a) does not prevent the appointment of an independent auditor by the Minister and the Department to do a forensic audit on the accounts and financial statements of the SETA. |
(6) Financial responsibility of Executive Committee
The Executive Committee must ensure that the SETA complies with the financial requirements of the Act, the PFMA, other applicable legislation and this constitution.
(7) Signatories to accounts
| (a) | The Accounting Authority must appoint at least three people, including the Chief Executive Officer, as signatories for each account of the SETA. |
| (b) | At least two of the three signatories, which must include the Chief Executive Officer, must be required to authorise any payment made by the SETA. |