The Authority is financed from—
| (a) |
80% of the levies, interest and penalties collected in respect of the Authority, as allocated in terms of sections 8(3)(b) and 9(b) of the SDLA; |
| (b) |
grants made to it by relevant government departments as may be agreed from time to time; |
| (c) |
moneys paid to it from the National Skills Fund; |
| (d) |
grants, donations and bequests made to it; |
| (e) |
income earned on surplus moneys deposited or invested; |
| (f) |
income earned on services rendered in the prescribed manner; and |
| (g) |
money received from any other lawful source. |
The money received by the Authority must be paid into a banking account at any registered bank and may be invested only in—
| (a) |
savings accounts, permanent shares or fixed deposits in any registered bank or other financial institution; and |
| (b) |
any other manner approved by the Minister. |
| (3) |
Purpose for which funds may be used |
The moneys received by the Authority may be used only in the prescribed manner and in accordance with any prescribed standards or criteria to—
| (a) |
fund the performance of its functions; and |
| (b) |
pay for its administration within the prescribed limit. |
| (4) |
Financial records of Authority |
| (i) |
prepare annual budgets, annual reports and financial statements in accordance with Chapter 6 of the PFMA; and |
| (ii) |
furnish the Director-General with copies of all budgets, reports and statements contemplated in clause 15(4)(a)(i) and any other information that the Authority is required to submit in terms of the PFMA; |
| (iii) |
keep full and proper records of the financial affairs of the Authority; |
| (iv) |
prepare financial statements for each financial year in accordance with generally accepted accounting practices, unless the Accounting Standards Board approves the application of generally recognised accounting practices for the Authority; |
| (v) |
submit the financial statements referred to in clause 15(4)(a)(iv) within two months after the end of the financial year to the Auditor-General for auditing; and |
| (vi) |
submit within five months of the end of a financial year to the Minister and to the Executive Committee, an annual report of its activities during that financial year, the financial statements for that financial year after the statements have been audited, and the report of the Auditor- General on those statements. |
| (b) |
The annual report and financial statements referred to in clause 15(4)(a)(i) must- |
| (i) |
fairly present the state of affairs of the Authority, its business, financial results, its performance against predetermined objectives and its financial position as at the end of the financial year concerned, |
| (ii) |
include particulars of any material losses through criminal conduct, irregular, fruitless and wasteful expenditure, criminal or disciplinary steps taken as a consequence of such losses, any losses recovered or written off, any financial assistance received from the state and commitments made by the state on its behalf, and any other matters that may be prescribed. |
| (a) |
The Auditor-General must— |
| (i) |
audit the accounts, financial statements and financial management of the Authority; and |
| (ii) |
report on that audit to the Authority and to the Minister and in that report express an opinion as to whether the Authority has complied with the provisions of the Act and this Constitution relating to financial matters. |
| (b) |
Clause 15(5)(a) does not prevent the appointment of some other auditor to audit the accounts and financial statements of the Authority. |
| (6) |
Financial responsibility of Executive Committee |
The Executive Committee is responsible for ensuring that the Authority complies with the financial requirements of the Act, this Constitution and any other applicable law.
| (7) |
Signatories to accounts |
| (a) |
The Authority must appoint at least three signatories to each account of the Authority. |
| (b) |
At least two of the three signatories must be required to authorize any payment by the Authority. |
Copyright Act, 1978
