• 1- For the purposes of applying the provisions of the Regulation, support, grant, or aid means any cash or in-kind transfer provided from the State Treasury to an entity to enhance its resources, enable it to perform its tasks, or support a specific activity.

• 2- The entities subject to financial control referred to in subparagraph (2/A) of Article (Three) of the Law include the following:

  •   A- Entities that receive support, grant, or aid directly from the State Treasury through the Ministry.
  •   B- Entities that receive support, grant, or aid directly from the State Treasury through a government entity.

• 1- When determining the appropriate financial control methods over the entity, the Ministry shall consider the following criteria:

  •   A- Classification of the entity according to what is stated in Article Three of the Law, where all control methods may be applied to the government agency, and the application of report control is limited to the entity subject to the Law according to paragraph (2) of Article Three of the Law;
  •   B- The nature and size of the government agency according to its activities, the amount of funding it receives, and its organizational structure.
  •   C- The efficiency and effectiveness of the internal control systems in the government agency, based on the evaluation results carried out by financial auditors according to the framework outlined in Article Six of this Regulation.
  •   D- The automatic linkage of the government agency to any of the government resource systems, as all government agencies are subject to digital (technical) control if they are automatically linked to any of the government resource systems.
  •   E- Any other criteria determined by the Ministry.

• 2- It is permissible to combine more than one control method over the government agency based on the following regulations:

  •   A- All government agencies are subject to digital (technical) control if they are automatically linked to any of the government resource systems, in addition to the control method specified for the government agency according to the criteria set forth above.
  •   B- The government agency is subject to both self-control and direct control simultaneously in the event that self-control is partially applied within the government agency.
  •   C- The government agency may be subject to report control over some of its activities in addition to any other financial control methods according to the control coverage achieved through the remaining control methods.

• 3- The Ministry shall, whenever necessary, review and develop its internal controls and procedures—both manual and automated—related to the application of financial control methods.

• 1- Government agencies have the right to correspond with the Ministry to submit a request for evaluating their readiness to transition to the self-monitoring method wholly or partially, after completing the self-assessment process according to the forms issued by the Ministry.
• 2- The Ministry shall review the results of the self-assessment and respond regarding the possibility of including the government agency among the agencies to be evaluated for the transition to the self-monitoring method within a maximum period of (60) working days from the date of its correspondence with the Ministry.

When the Ministry sets corrective procedures with the entity, the priority for implementing these procedures is determined consensually based on the potential impact resulting from weak regulatory controls.

• In the case of applying direct oversight, the financial representative - according to the scope of the assigned mandate - undertakes the oversight work on the government agency, taking into account the following regulations:

  • 1- Oversight of procedures and operations with financial impact, ensuring their compliance with relevant laws, regulations, and instructions, including the following:

    •   A- Reviewing disbursement and payment orders and ensuring that all supporting documents for the disbursement are attached.
    •   B- Supervising revenue operations.
    •   C- Reviewing the monthly schedules and final accounts of the agency.
    •   D- Reviewing settlement authorizations.
    •   E- Ensuring the periodic settlement of advances and deposits as required by the relevant laws and instructions, and that no amounts remain with the government agency without justification.
    •   F- Ensuring that the agency implements the statutory instructions stipulated in subparagraph (2 / B) of Article (Eight) of the law.
    •   G- Tasks related to assessing the extent of the government agency’s compliance with instructions related to financial statements and the application of the accrual accounting basis according to the tasks determined as related to the financial representative.
    •   H- Any other tasks assigned to the financial representative, provided they do not conflict with the provisions of the law and the competencies of oversight bodies.

  • 2- Tasks and authorities assigned in committees formed according to relevant laws, regulations, and instructions.

  • 3- Cooperation with the government agency - upon its request - regarding the execution of its financial affairs by providing opinions and technical advice, without prejudice to the financial representative’s independence or limiting their ability to perform tasks related to direct oversight. The government agency must assess the appropriateness of the provided opinion and technical advice and take necessary action accordingly.