The assets of each fund must be inventoried and an automated reconciliation conducted unexpectedly once every three months, and the inventory and automated reconciliation of warehouses and physical assets must be carried out once a year at appropriate and unspecified times.

Each inventory and accounting committee shall consist of at least two employees from the entity to which the fund, warehouse, and physical custody belong, who have knowledge and experience in financial and warehouse operations and the "Payment System." This shall be decided by the competent authority in the entity based on a proposal from the Director of the Financial Administration or the Director of the Warehousing Department or their designees, ensuring confidentiality in issuing the decisions to form the committees and notifying the members until the inventory is completed.

• An inventory and automated reconciliation of the assets of each fund shall be conducted at the headquarters of the entity by a committee that includes a representative from the financial department and another from the monitoring department, or their competent financial staff substitutes. This applies to branch funds, especially the larger ones. If this is not feasible, the inventory and automated reconciliation of the assets of these funds may be conducted by committees that include the financial branch manager, the head of accounting at the branch, the accountant, or their competent financial staff substitutes at the branch.
• The warehouses and physical assets shall be inventoried by committees formed from individuals who are not responsible for them and who are not specialized in their records. In cases of necessity, the inventory committee may include one or more technical representatives who are knowledgeable about the items to be inventoried, especially when conducting an inventory of machines, scientific devices, medicines, chemicals, or similar items.

The inventory and automated reconciliation of the fund's assets are conducted in the presence of the treasurer. Additionally, the inventory and automated reconciliation of the warehouses and physical assets are carried out in the presence of the direct supervisors responsible for them. In the absence of these supervisors, the inventory is conducted in the presence of those assigned to perform their duties. However, they do not have the right to intervene in the inventory procedures or the responsibilities of the inventory committees.

A- The inventory of the fund's assets and the automated reconciliation shall be conducted for the period starting from the date of the last inventory and automated reconciliation previously carried out by representatives of the General Auditing Bureau or by an inventory committee formed in accordance with the provisions of Article (2) of this Regulation. This date is determined by reviewing the results of the previous inventory recorded and approved in the entity's records.
B- Before commencing the inventory of the fund's assets, the treasurer is tasked with filling out the required data * Survey Form (attached Form No. 1) and signing it. This form is considered an attachment to the inventory report.
C- The inventory of the fund's assets is conducted, and the committee prepares a report on the results of this inventory. The inventory committee must ensure that it has inventoried all amounts, including checks or valuable papers belonging to the fund.
D- The inventory committee must review any documents that may be with the treasurer (as a disbursement representative) from payroll statements or similar documents and extract the value of all entitlements that have not been disbursed, noting these entitlements in the inventory report. The committee must also inventory any cash in the treasurer's custody from permanent advances and prepare the necessary report in this regard (attached Form No. 4).
E- If the committee discovers during the inventory or through the survey form that there is an open account in the name of the entity or the treasurer at the central bank or one of its branches or one of the banks, the committee must officially inquire with those entities about the account balances of the entity as of the date of the inventory and compare them with the statements from the central bank or the bank held by the entity for that account, documenting this in the final report of the inventory results. If the account is in the name of the treasurer, this should be noted as a comment in the committee's report mentioned in paragraph (A) of Article (7) of this Regulation, so that the entity can take the necessary actions to transfer the account to its name.
F- The inventory committee applies the details of the amounts collected recorded on the receipts side of the fund's daily record (manual or automated) to the receipts or copies of the receipt confirmations, and applies the amounts deposited in the central bank or its branches recorded on the payments side of the fund's daily record (manual or automated) to the deposit notifications or statements received from the central bank or its branches. The committee also applies the amounts of transfers disbursed from the entity's fund at the main center, recorded on the payments side of the fund's daily record (manual or automated) to the records of the transfers account in the financial administration. If the entity disburses using checks drawn on its account at the central bank or one of its branches or one of the banks, the committee must reconcile the amounts of the checks disbursed and recorded on the payments side of the fund's daily record (manual or automated) or the permanent advance record (manual or automated) with the statements from the central bank or the bank regarding the movement of the mentioned account, taking into account the value of the checks delivered to their owners that have not been presented for payment until the date of the inventory. The committee must clarify the result of this reconciliation in the inventory reports after ensuring the accuracy of the addition and posting in the fund's daily record or the permanent advance record (manual or automated) that the collection and disbursement documents up to the moment of the inventory have been recorded and that everything is in the relevant record before determining the value of the recorded balance of the fund's assets.

G- In the event of discovering a discrepancy between the actual cash available in the fund and its recorded balance, whether an increase or decrease, or a difference between the information provided in the survey form and what is revealed during the actual inventory, the inventory committee must investigate the reasons for this and obtain statements from the treasurer and others related to the matter, and work to deposit the value of the increase in the actual available amount over the recorded balance of the fund, and collect the value of the deficit according to their responsibility.

1- Ensure that the entity has stopped all other collection methods in agreement with the Ministry of Finance.
2- Ensure that the entity has opened a collective intermediary account at one of the banks in coordination with the Ministry of Finance.
3- Ensure that the entity coordinates with the bank where the collective account was opened to link the financial management to an end terminal so that it can monitor the movement of amounts deposited by the Payment Management, granting one of the specialists in the financial management the authority for quick transfer of those amounts to its specialized accounts (Ministry of Finance current account, Central Bank account, account in one of the banks).
4- Ensure that the entity categorizes the invoices raised in the system by entering the chapter and branch number (the tax number of the entity benefiting from the revenue), and specifying the number and name of the main and subsidiary account.
5- Ensure that no amounts are transferred from the collective account to private accounts or accounts not approved by the Ministry of Finance.
6- Ensure that the amounts deposited in the collective account are recorded on the debit side of this account, and on the credit side the revenues that pertain to the entity, while revenues that do not pertain to it are recorded as belonging to the benefiting entities.
7- Ensure that the entity transfers the revenues collected in the collective account every week at the beginning of the following week to the specified accounts via a rapid system.
8- Ensure that the entity links all its branches to the internal system to enable them to raise their invoices through the system.
9- Conduct electronic matching according to the electronic matching procedures for revenues collected through the Payment System issued by the Ministry of Finance.
10- Conduct a review of the data of canceled invoices, which clarifies the number of invoices canceled before collection, their amounts, and the reasons for cancellation, and to assess the actions taken by the entity to address the reasons for cancellation and reduce the number of canceled invoices, and conduct the necessary examination of the system to ensure that it does not accept the cancellation or modification of any invoice whose value has been collected.
11- Ensure that the reports extracted from the system meet the requirements of the entity's work.
12- Ensure that the entity conducts electronic matching of the amounts collected through the Payment System and provides the General Auditing Bureau with a copy of the monthly matching.
13- The electronic matching committee for revenues collected through the Payment System prepares a final report on the results of the matching, and the officials responsible for entering the system in the entity and the members of the matching committee sign this report and its attachments, and then it is approved by the authorized persons in the entity, and the General Auditing Bureau is provided with the original report along with an explanation of the actions taken by the entity regarding the observations, violations, and errors that may have been revealed by the matching, within a period not exceeding one month from the date of completion of the matching work. The second copy of the report and its attachments is sent to the Director of Financial Management in the entity as he is responsible for following up on the implementation of the matching procedures once every three months, supervising the examination of the reports of this matching, and following up on the implementation of the regulatory procedures regarding the observations, violations, and errors revealed by the matching, and organizing the preservation of these reports and their attachments in special files of the financial management.

A - The inventory committee prepares a final report on the results of the inventory of the fund's assets and the results of the examination and matching of at least one original and one copy. Both the treasurer and the members of the inventory committee sign this report and its attachments. The results of the inventory are also approved by the direct supervisor of the treasurer, and these results are briefly recorded in the fund's daily ledger or the permanent advance payment ledger. Both the treasurer and the members of the inventory committee sign to acknowledge their accuracy. After presenting this report and the observations of the Director of the Financial Administration or their representative to the official who issued the decision to form the inventory committee, actions are taken in accordance with the law regarding any observations, violations, or errors revealed during the inventory (if any). The original report and its attachments are sent to the General Auditing Bureau, along with an explanation of the actions taken by the entity in this regard, within a period not exceeding one month from the date of the completion of the inventory work. A copy of the report and its attachments is sent to the Director of the Financial Administration in the entity to which the fund belongs, as they are responsible for monitoring the implementation of the inventory of the assets of each fund every three months, supervising the examination of the reports of this inventory, reviewing the minutes and data related to it, and following up on the implementation of legal procedures regarding any observations, violations, or errors revealed by the inventory, as well as organizing the preservation of these reports and their attachments in special files of the Financial Administration.
B - The inventory committee must, in the event that the treasurer refuses to sign the inventory minutes, the survey form, or the final inventory report, request that the treasurer specify and clarify the reasons for this refusal in writing. The committee should also express its opinion regarding the seriousness of these reasons in its final report.
C - Inventory committees should ensure that the inventory work is completed on the same day it was started, and they should not seal the fund or the fund room and other access points leading to it except in extreme necessity, such as the treasurer's absence until the end of official working hours or postponing the inventory of the fund's assets to the following morning. It should be stated in the minutes prepared in this regard that the seals should not be broken except in the presence and with the consent of the members of the inventory committee.

A- Upon completion of the inventory and reconciliation procedures, the Inventory Committee shall prepare a final report consisting of an original and at least one copy detailing the results of the inventory of the securities and cards fund, including any discrepancies or excesses found in the actual inventory compared to the recorded balance, whether the value of any discrepancies has been deposited, along with an explanation of the reasons in case of non-deposit, and how any excess, if found, has been settled, as well as the results of the bookkeeping or automated examination and the reconciliations conducted by the committee. Both the treasurer and the members of the Inventory Committee shall sign this report and its attachments. The results of the inventory shall also be approved by the direct supervisor of the treasurer, and the results of this inventory shall be briefly recorded in the bookkeeping or automated record of the total receipts and disbursements of the securities and cards, with both the treasurer and the members of the Inventory Committee signing to acknowledge its accuracy. The presentation of this report and the comments of the Director of the Financial Administration to the official who issued the decision to form the Inventory Committee shall be made to take the necessary legal actions regarding the observations, violations, and errors revealed through the inventory. The original report and its attachments shall be sent to the General Auditing Bureau, and a copy shall be sent to the Director of the Financial Administration of the entity as stated in paragraph (A) of Article (7) of this regulation.
B- :

1- The Inventory Committee must, in the event that the treasurer refuses to sign the inventory minutes and the survey form or the final inventory report, request that he specify and clarify the reasons for this refusal in writing, and the committee shall express its opinion regarding the seriousness of these reasons in its final report.

2- The Inventory Committees should ensure that the inventory work is completed on the same day it was started, and they shall not seal the fund or the fund room and other access points leading to it except in extreme necessity, such as the treasurer's absence until the end of official working hours or postponing the inventory of the fund's assets to the following morning, provided that the minutes prepared in this regard state that the seals shall not be broken except in the presence and with the consent of the members of the Inventory Committee.

The warehouses and professional accounts shall be audited by a committee or committees formed and whose members are selected in the manner provided in Articles Two and Three of this Regulation. The audit shall follow one of the two methods below, depending on the size of the warehouses, the variety of items to be audited, and the time required to complete this audit:
1- Total Audit:
This is the audit that includes all inventory items, item by item, and is conducted in one batch during the specified audit period.
2- Continuous Audit:
The audit process using this method is conducted continuously during the first ten months of the year according to audit programs that are prepared in advance by the Director of the Financial Department in collaboration with the Director of the Warehousing Department or their designee. This audit continues throughout the specified period, covering all inventory items, ensuring that each item is audited once during this period. After completing the audit of all items as mentioned, within the remaining two months of the Hijri year, a selection of some of those items shall be randomly chosen and audited to verify the recorded balance of the inventory and ensure it matches the actual stock.