Acts Online
GT Shield

Skills Development Act, 1998 (Act No. 97 of 1998)

Constitutions

Constitution of the Chemical Industries and Training Authority (CHIETA)

24. Finances

 

24.1 The CHIETA is financed through:
24.1.1 Levy transfers received from SARS as set out in section 14(a) of the Act;
24.1.2 Money paid into the CHIETA by the NSF for specific purposes;
24.1.3 Income earned on surplus moneys deposited or invested;
24.1.4 Income earned on services rendered in the prescribed manner; and
24.1.5 Money from any other source.

 

24.2 The CHIETA is a public entity and it's finances shall at all times be managed in accordance with the Public Finance Management Act, 1999.

 

24.3 The CHIETA must open and maintain a bank account in its name at a registered bank of its choice, approved by the Governing Board, in the Republic of South Africa.

 

24.4 The money received by the CHIETA may only be invested in:
24.4.1 Savings accounts;
24.4.2 Permanent shares;
24.4.3 Fixed deposits at a registered bank or other financial institution; and
24.4.4 Any other manner approved by the Minister.

 

24.5 The Governing Board must determine a policy and procedure for the payment of the CHIETAs expenses. All payments must accord with that policy.

 

24.6 The CHIETA must—
24.6.1 prepare annual budgets, annual reports and financial statements in accordance with Chapter 6 of the Public Finance Management Act; and
24.6.2 furnish the Director-General with copies of all budgets, reports and statements contemplated in paragraph (a) of any other information that it is required to submit in terms of the Public Finance Management Act.

 

24.7 Money received by the CHIETA may only be used to:
24.7.1 fund the performance of its functions and
24.7.2 pay for its administration within the prescribed limits' or as determined by the Minister from time to time.

 

24.8 The Executive Officer must submit financial statements for approval to the Executive Committee on a monthly basis and to the Governing Board on a quarterly basis.

 

24.9 Annual financial statements must also be prepared by the Executive Officer. These statements must consist of:
24.9.1 balance sheet detailing the CHIETA'S affairs;
24.9.2 income and expenditure;
24.9.3 cash flow; and
24.9.4 levy transfers received and grants disbursed by the CHIETA.

 

24.10 The CHIETAs first financial year will commence on date of registration of the CHIETA. Thereafter the financial year shall begin on the first day of April each year and end on the last day of March of the following year.

 

24.11 At the end of each financial year the Governing Board must submit to the Minister, a statement of the CHIETAs estimated income and expenditure for the following financial year.

 

24.12 The Governing Board must approve an acceptable standard for accounting practices for the CHIETA and:
24.12.1 keep proper records of all the CHIETAs financial transactions, assets and liabilities and
24.12.2 within six months after the end of each financial year prepare accounts reflecting income and expenditure and the balance sheet showing its assets, liabilities and financial position as at the end of that financial year.

 

24.13 The Executive Officer must, no later than three months after the end of each financial year, prepare and submit a statement of the CHIETA’S financial activities for the financial year showing:
24.3.1 all monies received by the CHIETA in terms of the Skills Development Levy Act and any other sources;
24.13.2 expenditure incurred on behalf of the CHIETA in terms of: Remuneration and/or allowances for officials and employees, amounts paid to members of the CHIETA and alternates as compensation for travelling, accommodation and subsistence expenses incurred by them in respect of attendance at meetings or in the course of performing work on behalf of the CHIETA, payments made to CHIETA employees and education and training providers; office accommodation; printing and stationery requirements, miscellaneous operating expenditure, and
24.13.3 the CHIETAs assets, liabilities and financial position as at the end of the financial year.

 

24.14 The annual financial statements must be signed by the Executive Officer and the Chairperson of the Governing Board and be submitted to the appointed auditors for auditing and preparation of the report as required by the Act.

 

24.15 Original copies of the audited statements and the auditors’ reports must be made available for inspection by members at the offices of the CHIETA. The members are entitled to make copies of the audited statements and auditors’ reports.

 

24.16 The Executive Officer must, in consultation with the Chambers and Committees, prepare for submission to the annual general meeting of the Governing Board, an annual budget for the next financial year.

 

24.17 The Governing Board must submit to the Auditor-General the CHIETAs accounts, financial statements and financial management reports to be audited.

 

24.18 The Auditor-General must submit a report on the audit conducted to the CHIETA expressing an opinion as to whether the CHIETA has complied with the provisions of the Act, this Constitution and standard accounting practice. A copy of this report must be submitted to the Minister.