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

Constitutions

Constitution of the Tourism, Hospitality and Sport Training Authority (THETA)

Chapter 9 : General Provisions

34. Financial Matters

 

34.1 The financial year of THETA shall be from 1 April to 31 March in the following year.

 

34.2 The final authority and responsibility in all matters relating to finance shall rest with the Board of the THETA.

 

34.3 THETA shall be financed from:
34.3.1 the skills development levies, interests and penalties collected in its sector;
34.3.2 monies paid to it from the National Skills Fund;
34.3.3 income earned on surplus moneys invested or deposited as Prescribed;
34.3.4 income earned from services rendered in the Prescribed manner;
34.3.5 grants, donations and bequests made to it;
34.3.6 funds incorrectly transferred to other SETAs by the South African Revenue Service and which funds should have been allocated and transferred to THETA; and
34.3.7 money received from any other source.

 

34.4 THETA shall be managed in accordance with and in compliance with the Public Finance Management Act and all applicable regulations, determinations and Ministerial directions pertaining thereto.

 

34.5 The monies received by THETA may be used only in the Prescribed manner and in accordance with any Prescribed standards or criteria to fund the performance of its functions and pay for its administration within the Prescribed limit. The administration of THETA includes any aspect of the administration or management of THETA, irrespective of who performs it.

 

34.6 For the purposes of THETA paying for its administration within the Prescribed limit THETA shall take cognisance of the Prescribed total expenditure that a SETA may make on its administration and of other matters that may be Prescribed in respect of:
34.6.1 the amount that a SETA may spend on any aspect of its administration;
34.6.2 salary bands within which categories of employees must be remunerated;
34.6.3 the conditions under which employees may receive performance related payments and the maximum payment that may be made to an employee in this regard; and
34.6.4 the allowances that may be paid to Members and office-bearers of SETAs or any other persons who serve on a committee or other structure of a SETA.

 

34.7 All money, property, funds or other assets owned, vested in, held or acquired or received by THETA shall be controlled and administered by the Executive Committee and shall be applied to the achievement of the objects of THETA in accordance with relevant legislation, the policies determined by THETA and the provisions of this constitution, to fund the performance of its functions and to pay for its administration.

 

34.8 All immovable property of THETA shall be registered in the name of THETA.

 

34.9 The financial transactions of THETA must be conducted by means of banking accounts. All money received by THETA must be paid into banking accounts at a National Treasury approved registered bank. Any banking account opened in the name of THETA shall have at least five signatories:
34.9.1 the Chairperson and Deputy Chairperson;
34.9.2 the Chief Executive Officer;
34.9.3 the Chief Operations Officer;
34.9.4 the Chief Financial Officer.

 

34.10 The Executive Committee must develop and design an investment policy which permits for the investment of THETA monies only in:
34.10.1 savings accounts, permanent shares or fixed deposits in any registered bank or other financial institution;
34.10.2 internal registered stock contemplated in section 21(1) of the Exchequer Act, 1975 (Act No 66 of 1975); and
34.10.3 any other manner approved by the Minister.

 

34.11 The THETA must, in accordance with the standards of generally accepted accounting practice:
34.11.1 keep a proper record of all its financial transactions, assets and liabilities; and
34.11.2 within 6 months after the end of each financial year prepare accounts reflecting income and expenditure and a balance sheet showing its assets, liabilities and financial position as at the end of that financial year.
34.11.3 It shall be the responsibility of the Executive Committee acting on the advice of the Audit Committee to ensure that THETA complies with its obligations under this clause.

 

34.12 The Executive Committee shall ensure that the annual financial statements of THETA are made available to the Annual General Meeting of THETA.

 

34.13 Subject to the Act and this constitution, THETA shall pay to Board Members of the THETA, its Committees and Chambers, other than employees of THETA, an amount to cover the reasonable travel, accommodation and subsistence expenses incurred by them in connection with attending meetings and performing any of their functions as Members. Payment of any allowance or stipend for attending a meeting shall be in accordance with the Constitution, Act and THETA policy. Subject to the Act, the Remuneration Committee shall determine the amount to be paid and the procedures for claiming and authorising any such payment from time to time.

 

34.14 THETA must prepare annual budgets, annual reports and financial statements in accordance with Chapter 6 of the Public Finance Management Act.

 

34.15 THETA must furnish the Director-General with copies of all budgets, reports and statements contemplated in this clause and any other information that it is required to be submitted in terms of the Public Finance Management Act.

 

34.16 THETA accounts, financial statements and financial management shall be subject to an audit by the Auditor-General and the Auditor-General shall report on that audit to THETA and the Minister and in that report express an opinion as to whether THETA has complied with the provisions of the Act and this constitution relating to financial matters.