Financial Regulation


The Saudi Arabian Standards, Metrology and Quality Organization was established under the Royal Decree No. M / 10 dated of 03/03/1392 AH, which ratified its statute, has been granted the legal personality as a public legal persons to have a budget and autonomy,

and in order to have the necessary flexibility to achieve its objectives and to facilitate ways of cooperation with specialized regional and international organizations, that have similar purposes and goals, which restricts membership to independent organizations in the field of standards, has made its Statute of the Board of Directors supreme Organization and dominant on all its affairs and policy and the rules that go from the technical aspects, financial and administrative, and the issuance of the regulations implementing this politics.

In line with these considerations, and pursuant to the provisions of Article 12 of the Organization Statute, this regulation has been set up and approved to be implemented accordingly, taking into account to reconcile between two considerations:
I: The Organization is considered as a legal person, owned by the state, this makes its relationship with the state, like the branch with the main headquarters.
II: The Organization was established as an independent body to achieve certain purposes, this, required sufficient flexibility in the exercise of its business and in the conduct of its affairs.

On the other hand, the growth of the Organization (structure and work) since its start until now, and what is witnessed of economic development and financial inflation, resulted in two things:
1 – The current financial regulation is insufficient to meet its obligations "that The Organization was established as an independent body to achieve certain purposes, this, required sufficient flexibility in the exercise of its business and in the conduct of its affairs”.
2 – The financial criteria is diminishing, specified for different departments in the Organization, compared with the current financial regulation, regarding the levels of prevailing services prices.

In addition to that, the system of government purchases has been issued, and the implementation of its projects and work, which treated the new aspects of the work resulted from rising prices and the needs of economic development plans, through expanding the admin. Competences. The General Auditing Bureau mentioned in its letter No. 12670/6 Q m dated 29.07.1398 its opinion containing "non-applicability of the provisions of the government purchasing system on the Organization, which its Board of Directors has the right to amend its financial regulation according to its law, in order to help these rules to be applied.

Therefore, the following articles have been amended: 11, 14, 15, 16, 18, 25 of the Financial Regulations of the Organization, in the framework of Articles 12 of the Organization Statute and, 27 of the Financial Regulations of the Organization.

Chapter I
Article (1):
For the purpose of this regulation, the following terms shall have the meanings assigned to them, unless the context indicates otherwise:
A) Organization: Saudi Arabian Standards and Metrology Organization.
B) Board of Directors: The Board of Directors of the Saudi Arabian Standards, specification and Metrology Organization.
C) The Chairman of the Board: Chairman of the Board of Directors of the Saudi Arabian Standards Organization.
D) Vice Chairman: Vice-Chairman of the Board of Directors of the Saudi Arabian Standards Organization.
E) The Director-General: The Director General of Saudi Arabian Standards and Metrology Organization.
F) Budget: The budget of the Saudi Arabian Standards and Metrolog Organization.

Chapter II
Budget, Accounts, disbursement procedures and receiving amounts.
Article (2):
The financial year of the Organization is the state's fiscal year.
Article (3):
By the decision of the Director-General, a committee will be formed to prepare a draft budget for the next fiscal year. This resolution regulates the competences of reference of this committee and its procedures.
The committee has to complete the preparation of the draft budget in a timely manner, taking into account the rule of the following article.
Article (4):
the Director-General to submit the draft budget to the Board of Directors for discussion and approval in preparation for submission to the competent Organization in the Ministry of Finance and National Economy, no later than the deadline set by the Ministry of Finance.
Article (5):
If the budget is not adopted until the beginning of the fiscal year, the Organization will continue to work with the previous budget within the listed appropriations, till the new budget would be adopted with the consideration that the reduced appropriations in the project, as they were actually reduced, and the new funds as if they were not included.
Article (6):
After the issuance of the Royal Decree, concerning the adoption of the budget, the allocated funds would be deposited at the Saudi Arabian Monetary Agency in Riyadh, a special account would be opened under the name of the Organization, it is allowed, after the agreement with the Ministry of Finance , to withdraw an amount of this credit to be deposited in some local banks, with a special account of the Organization, to spend for its requirements.
Article (7):
The Director-General will be responsible for issuing payment orders related to the Organization.
Article (8):
Payment from the Organization account would be done through issuing checks in favor of the beneficiary signed by the Director General and the Financial Officer.
Article (9):
During the correlation and payment, it should be taken into consideration the allocated funds for the chapters and items of the budget as much as possible, so that it does not resort to transfers among the chapters and items, only when it is needed and in accordance with the established powers.
Article (10):
The transfers from chapter to chapter would be of the jurisdiction of the Chairman of Board of Directors or his deputy, and the transfers from item to item within one chapter shall be within the competence of the Director-General, and in all cases, it must be taken into account what is stipulated in the Royal Decree issued for the Organization budget.
Article (11): 
Putting an amount not more than one hundred thousand riyals determined by the Director-General, in the custody of the treasurer to be spent for necessary expenses required by the nature of the business, and to be spent in accordance with the rules laid down by the Board of Directors, and it is allowed to put a temporary amount in the custody of one of the Organization employees, to be appointed by the Director-General and under its supervision, this amount will not exceed the employee's salary for three months, in order to spend it for urgent cash transactions that do not exceed one thousand riyals (1000) each, the employee will be asked about this custody at the end of every three months or when the amount is finished, whichever comes first.
Article (12):
The chairman of the Board of Directors or his deputy may deduct expenses or due amount related to previous fiscal year from the current budget after the submission of the reasons and justifications for that, and this provision shall apply to cases of exclusion from income.
Article (13):
The due amounts for the Organization may be received through cash or by a certified check drawn on a licensed bank in the Kingdom.

Chapter III
Procurement, Contracting on Business, Services and Sales
Article (14):
The purchase of items and contracting on works and services required for the Organization will be through the following ways:
A) By tender through advertising in a newspaper at least twice, with a period of a week between them, or at direct invitation through official letters to those who are interested in the tender, and bidding, in this case, to be submitted in sealed envelopes to be opened in the time specified by advertising or to be included in the letter of invitation.
B) the method of opened offers for equipment of various types through selecting three acceptable types that meet the required purpose, the Saudi licensed agents of such equipment will be called to submit an open offer after notifying them with the required specifications within a period not less than three days, If these equipment have no official agent in the Kingdom, they may be purchased from dealers or manufacturers.
C) The method of direct purchase, which the item or product is obtained directly from the market.
Article (15):
The Director General will have the Organization to contract in the two types of bidding with the acceptance of the sole offer which does not exceed three million riyals, and in the method of opened offers with a value not exceeding a million riyals, and through direct purchase with a value not exceeding five hundred thousand riyals, any amount exceeds that shall be approved by the Chairman of the Board of Directors or the one whom he will authorize.
Article (16):
The Director General will establish special committees to take action regarding the two types of bids, and the opened offers for purchase and contracting of works and services within the scope of the authority of the Director-General, the Organization management determines the competences of this committee and the procedures and rules that must be followed, the competences of the chairman of the Board of Directors in this regard, the chairman himself will decides what he sees appropriate at that time.
Article (17):
The Organization Director General has the right to form committees or assign individuals to contract through direct purchasing, according to the need, taking into account the provisions of Article (15) of this Regulation.
Article (18):
The sale of assets, items and samples owned by the Organization, whether in excess of its need, corrupted, or there is possibility to be damaged or unusable or out dated to be used, according to government procurement system.
Chapter IV
Article (19):
The input and output items and objects to and from warehouses of the Organization in accordance with the instructions, rules and procedures contained in the accounting system of the Organization.
Chapter V
Final accounts and auditing
Article (20):
The accounts of the Organization will be closed at the end of the fiscal year, the concerned department will prepare the final account and portray its financial position, no later than the end of the third month of the new fiscal year for presentation to the Board of Directors with the auditor's report.
Article (21):
The Board of Directors will appoint comptroller or more of Chartered Accountants licensed to work in the Kingdom, and they will have the rights of auditor in joint stock companies, and they have its duties, and in case of multiple comptrollers, they will be jointly liable, and the Board of Directors will determine the reward of the comptroller or comptrollers.
Article (22):
The auditor or his deputy, has the right all the time to have access to all the books of the Organization and its records and documents and to request the data and explanations, needed to perform his task, and has also the right to verify the assets of the Organization and its obligations, and the Organization management should enable the auditor to perform his duty and provide all the facilities to him in this regards.
Article (23):
The auditor has to review the final accounts of the Organization and portray its financial position and to submit a report thereon to the Board of Directors during a period not after the third month of the new fiscal year.

Chapter VI
General and Final Provisions
Article (24): 
The Director-General will set up an integrated accounting system for the Organization for controlling and regulating expenditure and payment operations, collection and warehouses such as designing books, records and accounting documents, forms, and how Maintained etc. this system will be presented to the Board of Directors before its application.
Article (25):
The Director-General is allowed, after the approval of the chairman of the Board of Directors, to authorize an employee of some of his competences, as required by work, and commensurate with the employee career, this is to be done through written decision including the competences assigned, and the name of the employee with his position and period of authorization.
Article (26):
The Board of Directors may exclude any of the provisions of this regulation and deciding on everything not provided for.
Article (27):
The Board of Directors has the power to amend the provisions of this Regulation in agreement with the Ministry of Finance and National Economy.
Article (28):
The Director-General shall issue the decisions and instructions for the implementation of this regulation.
Article (29):
This Regulation shall be enforced as from the date of its issuance.​

Last modified 02 Dec 2019
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