Finance bond regulation and asset inventory strengthened

  • Abdulwahab Al-Rasheed: The employee is responsible for notifying the loss, damage or damage to the assets
  • 5 working days .. a legal period to notify the asset unit of loss and damage
  • The emergency inventory committee determines the cost of the damaged assets and the results of the investigation

Ali ibrahim

Minister of Finance and Minister of State for Investment Affairs Abdul Wahhab Al-Rasheed emphasized that the organization of the covenant and the inventory of assets are a basic requirement to ensure the optimal use of state assets in an efficient and effective manner and to make decisions take what works in an integrated way with definition of responsibilities and competencies and commitment to implement it, while laying the correct foundation for inventory in a way that fosters a culture of transparency, integrity and preservation of public money in the public sector promote.

He added: “With a desire to develop and improve working methods and tighten control over these assets, the Asset Systems Department Circular No. 4 of 2022 issued regarding the regulation of the covenant and the inventory of non-current non-financial assets, which clarifies the procedures for its organization and inventory.

Al-Rasheed stressed in his circular that the asset accounting unit or whoever performs his work in the government entity should provide co-operation to the inventory committees.

And that it is mandatory to record all inventory operations on the actual dates of their occurrence to ensure that the reports are properly extracted, and the inventory settlements must end no later than April 30 of each year.

He stressed that in the event that the Emergency Inventory Committee recommends that the matter be referred to Public Prosecution, the agency’s representative or whoever he delegates will take the necessary steps for the referral within 10 days of the report being submitted to him, and the inventory committees may seek the assistance of those they see fit from the specialized technicians of the organizational units within the state entity.The results of the work of the inventory committees must also be documented in official meeting minutes signed by all members of the committee.

With respect to liability for the preservation of assets, the circular stated that these procedures and instructions were developed to apply them once the loss, damage or damage to any of the non-current assets is in the custody of employees in government agencies. discover, as work according to these procedures helps to: spread awareness among employees of the need to maintain assets and ensure their sustainability, and take the necessary measures to investigate and hold liable for lost, damaged or damaged assets in organizational units to restore the rights of the entity, and explain the procedures for reporting lost, damaged or damaged assets.

The circular defined the lost or damaged assets as theft, loss, or taking of what is owned by the state entity without the consent or written approval of the officials concerned. It is not possible to continue using it, for example (fire, vandalism, and the like), with the exception of assets that are damaged on their own or as a result of a manufacturing defect, and the employee is, as far as possible, liable for the safety and preservation of his personal custody considered responsible.

The circular touched on the procedures for dealing with lost or damaged assets, as the custodian employee is deemed responsible to notify his immediate superior in writing of any loss, damage or damage to the assets in his custody, so that the immediate manager notify the custodian of the organizational unit and the same in case of loss, damage or damage era of organizational units.

The custodian in the relevant organizational unit notifies the asset accounting unit or whoever performs his work in the state entity in writing within 5 working days. The agency’s agent or whoever he authorizes to issue a decision to form the emergency inventory committee and follow the procedure, and the emergency inventory committee coordinates with the asset accounting unit or whoever performs its work in the entity to determine the cost of lost, damaged or damaged assets, taking into account the results of the investigation and if the action is intentional or negligence was on the side. of the custodian employee.

The agency’s agent or whoever he delegates must issue the necessary (administrative and financial) criminal decisions against the person who caused the loss, damage or damage to the asset.

The employee who has the custody or who caused damage to the custody of the organizational units will bear the responsibility for the loss and damage by paying the cost of the assets (lost – damaged – damaged) according to the following cases:

A – In case of lost assets: the full cost of the asset will be paid according to the purchase invoice.

B – In the case of damaged or damaged assets: If the damage or damage is intentional or is the result of a failure to follow the procedures in this regard, the cost of the asset will be paid in full from the purchase invoice Repair of the damage that will be estimated by the technicians and specialists in the entity.

The employee who is supervising or who caused the damage (lost, damaged or damaged) must pay the costs within a period specified by the relevant government authority or deduct it from his claims from the date of issuance of the fine decision.

And the Department of Finance shall provide the entity with a copy of the penalty decision against the employee who is in custody or who has caused damage to the custody of the organizational units in order to take all necessary measures with regard to the determination of the debt of the offender in accordance with the usual financial procedures.

The government entity has the discretion not to grant a new trust to the employee (the custodian) unless he undertakes to pay the costs of the lost, damaged or damaged trust.

The circular specifies the emergency inventory procedures, following the same procedures as the annual general inventory, taking into account the closure of the accident site within the organizational unit at the instigation of the unit officer from the date of the accident. location of the accident, the committee’s opinion on how the accident took place, the extent of the responsibility of the employees involved, and a proposal for the actions to be taken.

The report is submitted confidentially to the agency’s agent or whoever he delegates, and then the necessary measures are taken. In the event that the committee recommends that the case be referred to the Public Prosecution, the agency’s agent or whoever he even if delegate takes the appropriate measures.

emergency supply

The annual general inventory and site evacuation inventory committees are formed according to the following conditions:

A – The agency’s agent or whoever he delegates will issue a decision to form inventory committees, and it will contain the timetable and instructions necessary for the inventory process.

b- A supervisor is appointed in the inventory operations with a high level of knowledge of administrative and financial operations (a department manager or someone at his level).

C- Its chairmen and members do not work in the organizational unit which is inventory, provided that it includes the following members:

– Member of the Covenant and Warehouse Accounting Unit.

– A member of the Asset Accounting Unit or whoever performs his work in the state entity.

One or more technicians in the case of an inventory of assets of a technical nature.

As for the emergency inventory, the committee is formed by the agency’s agent or whoever he delegates, and its membership includes those whose participation is required by the nature of the emergency inventory, from within or outside the governmental entity.

Inventory dates

1 – General Annual Inventory: The inventory is carried out from 1 October of each year and ends no later than 31 March.

2 – Inventory of handover of the custody of the organizational or personal unit, inventory of site evacuation and emergency supplies: The inventory dates are determined in the cases that require inventory.

4 notices to the Ministry of Finance

The asset accountant or whoever performs his work in the state entity must notify the Ministry of Finance – Asset Systems Department of the following:

1 – Decisions to form inventory committees and the approved schedule of appointments at least one month before the commencement of the inventory.

2 – Any amendments to the formation of the inventory committees or their dates before a sufficient period from the beginning of the implementation of the inventory procedures.

3 – A report on the results of the annual physical inventory of assets not later than 30 days from the end date of the inventory after it has been approved by the Deputy Secretary of the Ministry or its level.

4 – A report on the inventory settlements, if any, after it has been approved by the agency’s agent or his authorized representative.

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