Statute Regulating Financial Affairs in Universities
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Statute Regulating Financial Affairs in Universities
Issued by the Higher Education Council No. (6/2), dated 11/6/1416 H, approved by the Custodian of the Two Holy Mosques in his capacity as Head of the Higher Education Council by telegram No. 7/B/9045 dated 27/6/1416 H, and modified by the Council of Universities Affairs by Resolution No. (1/4/1442) dated 14/9/1442 H (26/4/2021). 2nd Edition, 1443 H (2021 AD)
*The articles of the Statute were rearranged and produced in their present form as per the Universities Affairs Council Resolution No. (1/4/1442) dated 14/9/1442. The following titles were modified to conform to the modified nomenclature in accordance with the orders, resolutions and regulations in force: University Director, Saudi Arabian Monetary Authority, General Control Bureau, Ministry of Finance and National Economy, Government Procurement and Its Project Implementation System).
Extracted and cleaned text for reading and search; the officially published edition prevails.
Transcribed text
Chapter One: The Budget
Article 1
Every university shall have its own independent budget approved by a Royal Decree that specifies its revenues and expenditures and is subject to the oversight of the General Auditing Bureau. The fiscal year of the university corresponds to the fiscal year of the Kingdom.
Article 2**
University revenues comprise:
1.Appropriations allocated in the Kingdom’s budget.
2.Donations, grants, bequests, and awqaf.
3.Proceeds generated by its properties, and proceeds from their disposal or investment.
4.Revenues generated from the sale, use, or investment of its assets or products.
5.Any revenues generated by research or study projects; scientific, consulting, teaching, or training services provided to other entities; conferences, forums, workshops, and symposia; or providing paid services by university affiliates to outside entities.
6.Fees for services provided to students or others, such as reissuing academic documents and records in accordance with the rules and regulations approved by the University Affairs Council.
7.Fees for teaching or training Saudi or non-Saudi students in its programs according to the rules and regulations approved by the University Affairs Council.
8.Other financial resources approved by the University Affairs Council.
** This article was amended in accordance with University Affairs Council Resolution No. (1/4/1442) dated 14/9/1442 H.
Article 3
Each university shall prepare its own draft budget in coordination with the university’s colleges, institutes, centers, branches, and departments on the basis of an estimate of justified expenses.
Article 4*
In line with the instructions governing the issuance of the Kingdom’s budget, the expenditures of each university shall be delineated in accordance with the sections specified in the Royal Decree on the Budget.
*This article was amended in accordance with the University Affairs Council Resolution No.(1/4/1442) dated 14/9/1442 H.
Article 5
Taking into consideration the periods specified by the Ministry of Finance for submitting the draft budget, the University President shall submit the draft budget to the University Council for approval, prior to submitting it to the Minister of Education.
Article 6
Transfers among budget items or sections shall be made according to the Budget Decree.
Article 7
No disbursement is to be made unless it is based on prior authorization, and no authorization is to be granted unless it is within the limits of the provisions included in the budget, or after modifying it on the basis of a decision from the relevant authority.
Article 8*
University funds allocated in the Kingdom’s budget shall be deposited under the university’s name in the Saudi Central Bank or any of its branches in the Kingdom. It is permissible to deposit these funds in more than one bank if such action is deemed necessary due to work circumstances.
*This article was amended in accordance with the University Affairs Council Resolution No.(1/4/1442) dated 14/9/1442 H.
Chapter Two: Procurement and Assigning of Works
Article 9
In regard to the procurement and assigning of works, the University President has the following authority:
a.Issuance of and decisions on tenders for the procurement and assigning of works that do not exceed 15 million riyals. If the tender exceeds said amount, the decision shall be made by the Chairman of the University Council.
b.The direct assignment for carrying out works and direct procurement up to one million riyals.
c.Acceptance of the only existing bid if it falls under his authority in terms of the amounts shown above, and if the work circumstances do not allow this, reopening the bidding process.
Article 10
The University President may delegate some of his financial authority related to the procurement and mandating of works to vice-presidents, deans, directors of institutes, department heads, and others at the university in accordance with the Government Competitive Bidding and Procurement System, provided that said authorization corresponds hierarchically to the responsibility of the person it is delegated to.
Article 11
If anything regarding the procurement and mandating of works is not referenced in this Statute, the provisions of the Government Competitive Bidding and Procurement System, its executive regulations, and any amendments thereto shall be applied.
Article 12
Subject to the rules that govern leasing and demolishing government buildings and renting property from outside entities, the University President, or whoever is so authorized by him, has the authority to:
a.Lease university property and renew or terminate rental contracts;
b.Order demolition of buildings that are severely dilapidated or pose a danger.
c.Rent real estate from external entities.
Chapter Three: Warehouses
Article 13
An inventory of all university assets shall be made at least every two years by a committee appointed by the University President in order to match the existing assets with the asset register. The results are to be reported to the University President. With the exception of the above, when organizing university warehouses, the Rules and Procedures for Government Warehouses issued by the Minister of Finance’s Resolution No. 21/4201 dated 11/8/1403 H and any amendments made to it shall be applied.
Chapter Four: Money Collection and Disbursement
Article 14
It is possible to disburse a "permanent advance" for every college, institute, supporting deanship, center, or department at the university by a decision of the University President, or whoever is so authorized by him, that specifies the sections in which this advance shall be spent. This advance shall be under the oversight of the Treasurer, Cashier, or the Chief Administrator. This shall be done in accordance with the budget implementation rules.
Article 15
The University President, or whoever is so authorized by him, shall assign a person to conduct an unannounced audit of the permanently allocated advance money. This advance must be liquidated before the end of each fiscal year.
Article 16
A "temporary advance" may be disbursed for specific purposes by a decision of the University President or whoever is so authorized by him. This advance must be settled as soon as the purpose for which it was disbursed has been resolved.
Article 17*
Unless there is another provision in this Statute, the university collects and deposits its revenues in one or more accounts in its name in one of the banks or financial institutions licensed to operate in the Kingdom. Disbursement from the account or accounts shall be in accordance with the provisions of this Statute.
*This article was numbered 18. It replaced Article 17 that was deleted in accordance with the University Affairs Council Resolution No. (1/4/1442) dated 14/9/1442 H.
Chapter Five: Financial Control
Financial Control before Disbursement
Article 18
Based on the University President’s nomination, the University Council shall select a Financial Controller and one or more assistants according to need for a three-year term, subject to renewal. The appointees report to the University Council.
In the event of the absence of the Financial Controller, or the existence of circumstances preventing him from performing his job, the University President will assign his assistant, or his senior assistant – in the case of there being several assistants - to carry out his responsibilities. The University President shall report this to the University Council.
Article 19
Whoever is chosen as a financial controller or his assistant must be Saudi, and characterized by honesty, good conduct, and professional competence in terms of academic qualifications and practical experience.
Article 20
The Financial Controller shall determine that all financial disbursements and collection processes run in accordance with the provisions of the Higher Education Council and this Statute.
Article 21
No amount of money shall be disbursed without the permission of the Financial Controller whether it is a payment order, a check, or a remittance.
Article 22
No amount of university funds shall be disbursed unless original documents are provided. If it is disbursed using photocopies of documents or replacement documents, it should follow the regulations and resolutions in effect.
Article 23
The Financial Controller must ensure that there is appropriation for spending in the university’s budget and that there is a system or approval in place or direct orders from the concerned authority at the university approving the disbursement. The Financial Controller must refrain from signing the documents if he determines that they are in violation of the approved university budget rules, the rules and regulations applied by the university, or the rules and regulations applied at the university, or the financial instructions for the budget and accounts, with a statement in writing of the reasons for abstaining. If there is a dispute regarding the disbursement between the Financial Controller and the Director of Financial Affairs, the matter, including the two viewpoints, shall be submitted to the University President whose decision in this regard is final. If the Financial Controller is not in agreement with the University President’s decision, he must (after implementation) prepare a report to be submitted to the University Council for its consideration. The University Council’s decision is final.
Article 24
The Financial Controller shall review the accounting records at least once every three months. He shall also make sure that all accounting records are in accordance with this Statute’s provisions and the generally accepted accounting rules.
Article 25
The Financial Controller has the following duties:
a.Verifying that all the university’s movable and fixed funds are used for the purposes for which they were allocated, and that the concerned departments have reasonable and appropriate procedures to ensure the safety, proper use, and utilization of these funds.
b.Staying abreast of existing regulations and financial and accounting statutes to determine their applicability, adequacy, and appropriateness, and submitting his recommendations to the University President.
c.Reviewing the advances and the trusts every three months to ensure that no sums remain in these two accounts without justification.
d.Ensuring the application of warehouse rules, supervising the inventory process and ensuring its procedural integrity.
Article 26
The Financial Controller shall be a member of the University’s Bid Examination Committee.
Article 27
The Financial Controller and those charged with monitoring warehouses and financial operations have the right to access and view all data and information necessary to perform their duties, and the relevant university entities shall cooperate with them.
Financial Control after Disbursement
Article 28*
1.By a decision of the University Council, an audit committee shall be formed at the order of the Council and reporting to it, with the purpose of following up on the work of the external auditors and supervising the internal audit at the university in accordance with the provisions of this Statute.
2.The Audit Committee shall be composed of at least three experienced and specialized members, one of whom shall be a member of the University Council. The published decision to form the committee shall include naming the Chair of the Committee, its members, and their remuneration with a maximum of (60,000) sixty thousand riyals for each member in the fiscal year. The remuneration will be disbursed from the University’s alternative revenues, provided that there are no fewer than four Committee meetings in the fiscal year.
3.The Director of the Internal Audit Department at the university shall serve as the Secretary of the Committee.
4.The term of committee membership is three years, renewable once.
5.In the exercise of their duties and authority, members of the Audit Committee shall be committed to professionalism, confidentiality, and the avoidance of any conflict of interests.
6.The University Council will issue detailed rules for the activities of the Audit Committee, defining the Committee’s tasks, objectives, powers, secretariat tasks, and its relationship with external auditors and the University’s Internal Audit Department. The duties of the Committee include the following:
a.Supervising the University’s Internal Audit Department by staying informed of its work and studying its reports in a manner that does not conflict with the decisions, orders, and instructions regulating the internal audit units in government agencies and public institutions.
b.Evaluating the University’s internal control system, writing a report on it, and making recommendations about it to the University Council.
c.Reviewing the accounting and financial policies used at the University, providing feedback and making recommendations to the University Council in this regard.
d.Recommending the appointment of external auditors to the University Council based on the nomination of the University President and determining their remuneration.
Overseeing the external auditors’ work, studying their comments and views on the university’s end of year statement and financial reports, and submitting recommendations regarding them to the University Council.
a.Recommending the appointment of the Director of the Internal Audit Department.
b.Periodically reviewing the University’s bank accounts, and reporting on them to the University Council.
*This article was added in accordance with the University Affairs Council Resolution No. (1/4/1442) dated 14/9/1442 H
Article 29*
1.Without prejudice to the decisions, orders, and instructions regulating the internal audit units in government agencies and public institutions, the Director of the Internal Audit Department shall notify the Chair of the Audit Committee at the time of any violations that the Department was unable to address with the executive departments of the University. This is in order to take the necessary measures to address them in cooperation with the University President. The Chair of the Audit Committee must notify the Chair of the University Council of this in writing.
2.The Internal Audit Department shall have access to all records and documents and shall request data and clarifications it considers necessary to perform its duties. It shall also verify the effectiveness and efficiency of the University’s internal control system, and the extent of commitment to applying the provisions of this Statute and other financial rules applicable to the University. It will write reports on them to the Audit Committee. The concerned departments shall cooperate with the Internal Audit Department and facilitate its tasks.
*This article was added in accordance with the University Affairs Council Resolution No. (1/4/1442) dated 14/9/1442 H
Article 30
Without prejudice to the control of the General Court of Audit, the University Council will appoint one or more external auditors who meet the legal requirements and have the rights and duties of the auditor in joint-stock companies. The appointment is for a renewable fiscal year, and the Council will specify remuneration.
Article 31
It is not permissible for the external auditor to be a member of any University Council or to hold any of their positions.
Article 32
The external auditor shall review all records and documents, and he may request data and clarifications which he deems necessary to obtain in order to perform his duties. He must also verify the University’s assets and obligations.
Article 33*
In the event that the external auditor is unable to perform his duties, he must explain this in a report he submits to the Chair of the University Council in order for the Chair to make a prompt decision in the matter. He will provide the University President and the Chair of the Audit Committee with a copy of the report.
Article 34
The external auditor will review the University’s accounts and submit a report thereon every three months to the University President.
Article 35*
If the external auditor discovers any embezzlement or other activity that jeopardizes the University’s funds, he must submit an immediate report to the University President so that the President can take the appropriate measures. The external auditor will provide the Chair of the University Council and the Chair of the Audit Committee with a copy of the report.
Article 36
The external auditor shall review and audit the university’s end-of-year statement, which includes the University’s financial status and shall submit a report thereon to the University Council within a maximum of two months from the date of the end of the fiscal year. With the end-of-year statement, he shall submit his assessment of the University’s financial status and the extent to which he is satisfied with any clarifications or information he has requested from the University administration. The assessment shall be accompanied by a report that includes his comments, suggestions, and analysis of the end-of-year statement.
Article 37*
The University Council shall discuss the University’s annual end-of-year statement and the report of the external auditor based on the recommendation of the Audit Committee in preparation for submitting it to the Prime Minister. A copy shall be provided to the Ministry of Finance and the General Court of Audit.
*This article was amended in accordance with the University Affairs Council Resolution No. (1/4/1442) dated 14/9/1442 H
Chapter Six - Accounts
Article 38*
1.The university shall have an accounting system that complies with the financial instructions governing the budget and accounts, and in which all the elements of internal control are available, so as to provide the necessary reports to the administration and other concerned parties.
2.The University Council, at the recommendation of the Audit Committee, shall approve the Financial and Accounting Policies and Procedures Manual prepared by the university in accordance with the provisions of this Statute.
*This article was amended in accordance with University Affairs Council Resolution No. (1/4/1442) dated 14/9/1442 H.
Article 39**
1.The treasurer is not allowed to keep any funds other than university funds in the cash office vault, and all the funds in it are considered to be the property of the University. In the event of a deficit, the treasurer shall be held responsible for it.
2.Without prejudice to the supervision of the General Court of Audit, the Director of the Financial Department and the Financial Controller must make unannounced periodic visits to the cash office to log its assets, record the results in the cash office’s daily register, and submit a copy of the results to the University President.
** Due to the addition of a new article in the order 40 to the Statute, the previous article (40) has been merged to become paragraph (2) of article (39).
Article 40*
The Financial Department shall perform at least quarterly comparisons between the bank account balances registered in the name of the University and the University’s own balance sheets making any necessary reconciliations.
*This article was added in accordance with University Affairs Council Resolution No. (1/4/1442) dated 14/9/1442 H.
Chapter Seven: Allowances and Financial Aids
Article 41**
A regular Saudi student at the undergraduate or graduate levels and who is not employed shall receive the following financial aid:
a.Undergraduate students:
1.A monthly allowance of (1,000) thousand riyals for students with scientific majors, and 850 eight hundred and fifty riyals for students with arts and humanities majors.
2.Monthly financial aid for sight-impaired students equal to the salary of the first degree of the fifth rank in the name of a reader’s allowance and supporting educational aids
3.An excellence award of (1,000) one thousand riyals for a student who obtains a grade of A in each academic year.
b.Graduate students:
1.A monthly allowance of (900) nine hundred riyals.
2.An additional annual allowance equaling one month’s allowance for books and references allowance, provided that its disbursement is limited to the statutory period specified for completing the study program without extensions.
3.A lump sum allowance of (3,000) three thousand riyals for a master’s student, and (4,000) four thousand riyals for a doctoral student, to cover expenses for physical production of a thesis.
4.Monthly financial aid for sight-impaired students equal to the salary of the first degree of the fifth rank in the name of a reader’s allowance and helping means.
** See the appendix at the end of the Statute (pp. 20-21).
Article 42*
An official scholarship student from outside the Kingdom at the undergraduate and graduate levels shall be paid the following allowances and stipends:
a.A monthly allowance equal to that of a Saudi student.
b.An excellence award of (1,000) one thousand riyals, for a student who obtains a grade of A in each academic year.
c.An annual allowance of one month for books and references, provided that its disbursement is limited to the statutory period specified for completing the program of study without extensions.
d.A lump sum allowance of (3,000) three thousand riyals for a master’s student, and (4,000) four thousand riyals for a doctoral student, for physical production of the student’s thesis.
e.A discounted economy class ticket at the end of each academic year when traveling via the most direct route to his country of residence, provided that the student has not obtained a travel ticket from another source.
*See the appendix at the end of the Statute (pp. 20-21).
Article 43
The University may provide accommodations to a student at the undergraduate or graduate level who is not a regular employee if housing is available at the university.
Article 44
If the student’s academic program requires him/her to travel outside the city of study, the University, based on the recommendation of the department and college councils and the approval of the University President, shall provide him/her with a one-time economy-class round trip ticket.
Article 45
The University may provide students with meals at reduced prices. The University Council shall determine the amount that each student pays for each meal.
Article 46
At the discretion of the University President, regular students in the University’s colleges may be employed in some appropriate jobs outside school hours, according to the following:
1.Availability of funds.
2.Remuneration shall be based on an hourly wage or pre-determined payment for temporary jobs.
3.The remuneration does not exceed (1,000) thousand riyals per month.
Chapter Eight: Purposes and Rules of Expenditure of University Revenues Earned from Conducting Research, Studies, and Academic Services
Article 47*
The university, through its Institute or Center for Research, Studies, and Consultancy Services, may generate revenues by providing the following paid services: conducting studies, academic or consultancy services; providing study or training programs; providing services for holding conferences, forums, workshops, and symposia, and sponsoring them; or providing academic, administrative, and professional technical personnel to other Saudi or non-Saudi entities that have branches inside the Kingdom. Revenues from these services shall be deposited in the name of the University in a separate account in a licensed bank or financial institution from which it is earmarked for the following purposes:
1.Development of academic research and scientific and training services at the university as per the rules governing them.
2.Expenditure to cover the costs of the above-mentioned studies, research, and scientific services as per the following rules:
a.The university provides research scientific services, and full-time or part-time personnel and also performs specified tasks, for other parties, under a written contract or agreement specifying the work to be done, parties involved, duration, conditions, cost, payment method, number of participants, and the project supervisor; also taken into account is the compatibility of the participants’ specialization with the nature of the project.
b.The Council of the Institute or the Center determines the project budget including all direct and indirect cost estimates whether they are related to materials or labor including consultants’ remuneration and their expenses, and the costs of carrying out the required work using subcontractors. The University’s return should not be less than 10% (ten percent) of the project budget.
c.Costs are charged as per the conditions stated in the written contracts and agreements. When collected, they are deposited in a separate account for spending on expenditures for specified purposes.
d.The revenues of ongoing contracts are recycled annually until full implementation of these projects is achieved technically and financially. A semiannual report shall be submitted to the Audit Committee.
e.The institute or center may not enter into contracts with the intention of spending proceeds from them on employees of the contracting authority, unless this is in accordance with the regulations and instructions.
f.It is not permissible for the University President, University Vice-Presidents, Dean of the Institute, Vice-Deans of the Institute, the Director of the Center, or full-time employees of the institute or center to participate in the projects of the institute or the center.
g.Faculty members who are appointed as the Dean of the Institute, Vice-Deans of the Institute, or the Director of the Center shall receive a monthly remuneration determined by the University Council, not exceeding (300%) of their basic monthly salary.
h.Based on the recommendation of the University President, the University Council may approve contracting researchers and employees from the University or from outside it to implement funded projects on the condition that the period of this assignment is restricted to the period of contract, service, or study.
i.Based on the recommendation of the University President, the University Council may approve contracting consultants from the Kingdom or from outside it to provide consultancy services as per a contract which specifies the period of consultation, the nature of the work to be carried out, the amount of compensation that includes consultancy and housing, travel, and living expenses based on what is stated in the service contract.
j.Disbursement from the separate account is processed upon the approval of the University President or whomever he authorizes based on the recommendation of the head of the concerned party and the study supervisor. This is done by virtue of official documents, and it is subject to the control of the University Financial Controller.
k.The University President, or whomever he authorizes, may disburse a permanent advance for spending on the project based on a request from the supervisor and a recommendation from the Dean, or the Director of the Center in accordance with the rules of procedures for disbursing advances in the university, provided that it is settled periodically after the end of its purpose.
l.The estimated costs stated in the project budget, remunerations for consultants, researchers, and other participants in performing the work from the University affiliates or others are disbursed according to the costs stated in the agreements that the institute or the center concludes internally with the consultants, researchers, and others, and within the scope of the costs of contracts with the beneficiaries.
m.Taking into account the total costs of each study program or training course, a remuneration is disbursed to participants who deliver lectures and training courses in accordance with agreements and contracts.
n.At the conclusion of the research or study, the ownership of any property provided shall be returned to the university or the ownership shall be transferred to the contracting party, or the objects shall be jointly owned by the two parties. This shall take place according to the contractual agreement between the two parties.
o.The University Financial Controller shall periodically examine and review the records of the separate account for research, studies, and services; and submit a report on said account to the University President.
p.The projects and separate accounts for research, studies, and services are reviewed semi-annually by the external auditor of the university, and a report is prepared for the Audit Committee in preparation for submission to the University Council.
3.In calculating costs and remuneration for those who are employees of the University, disbursements to them by the University itself shall be factored in.
4.It is permissible, based on a decision issued by the University Council, to entrust the implementation of any of the studies, research, or services referred to in this article to any University unit in accordance with the provisions of this Statute.
*This article was amended in accordance with University Affairs Council Resolution No. (1/4/1442) dated 14/9/1442 H.
Chapter Nine: Rules for Accepting Donations, Grants, Bequests, and University Awqaf; and Disposal of Them
Article 48
The University Council may accept donations, grants, testaments, and awqaf. The Council may also accept donations associated with conditions or earmarked for specific purposes if the conditions or purposes are consistent with the mission of the University. These donations are deposited in a separate account from which disbursement is made for the purposes allocated to them in as per the following rules:
1.These donations shall be deposited in a separate account in the name of the University in the Saudi Central Bank or in one of the local banks, provided that the balance of this account is carried forward annually.
2.The donated assets and property are evaluated upon receipt.
3.All donations, grants, testaments, and awqaf are recorded in a special register.
4.Disbursement from donations, grants, testaments, and awqaf shall be in accordance with the following:
a.If the donation, grant, testament, or waqf is in cash or an asset and the donor has specified how to make use of it, then it shall be used for the purposes specified by the donor.
b.If the donation, grant, testament, or waqf is cash or an asset and the donor does not specify how it is to be used, the University Council shall determine its use.
c.Disbursement from the separate account is done using official documents, and it is subject to the oversight of the Financial Controller.
5.Disbursement from the separate account of one million Saudi riyals or less shall be made with the approval of the University President; amounts exceeding one million Saudi riyals require the approval of the University Council.
6.The Financial Controller shall periodically examine and review the records of donations, grants, testaments, awqaf, and the separate account; and he shall submit a report thereon to the University President.
7.At the end of each fiscal year, the external auditor must ensure that the donated assets and objects are registered as the University’s assets according to the generally accepted accounting rules, and the external auditor shall submit a report thereon to the University President.
Chapter Ten: Investment
Article 49*
1.The University has the right to invest its fixed or movable assets, money, products, or other money it decides to invest, in the University’s alternative revenues accounts in accordance with the following:
2.By a decision of the University Council, an investment committee shall be formed by the University Council and reporting to it. The purpose of the committee is to supervise the University’s investments, prepare its policies, and propose its annual investment plans for approval by the University Council.
3.The Investment Committee is composed of at least three experienced and specialized members, whose Chair is a member of the University Council and at least two members from outside the university. The remuneration of the members is determined at the time of its formation, with a maximum of (60,000) sixty thousand riyals for each member in the fiscal year. Remuneration shall be disbursed from the University’s alternative revenues provided that the number of committee meetings is not fewer than four meetings per year.
*This article was added in accordance with the University Affairs Council Resolution No. (1/4/1442) dated 14/9/1442 H
Article 50*
1.Investment revenues shall be deposited in a separate main account in the name of the University in one of the banks or financial institutions licensed to operate in the Kingdom.
2.Disbursement from the separate investment account shall be made by a decision of the University President upon approval of the Investment Committee for the following purposes:
a.Investment in accordance with the investment plan approved by the University Council.
b.Feasibility studies and other necessary studies related to investment.
c.The costs of contracting with unaffiliated experts, consultants, and specialists to work in the field of investment at the University.
d.The costs of specialized and experienced University’s employees who are used to carry out feasibility studies and other necessary studies related to investment.
e.Provision of furniture, office equipment, stationery, and other consumables related to the investment activities and the University units supervising it.
3.The University Financial Controller must periodically examine and review the records of the separate account for University investments. He must submit a report to the Investment Committee and provide the University President and University Council Chair with a copy.
4.At the end of each fiscal year, the external auditor must ensure that the investments, their returns, and disbursed amounts are recorded according to the generally accepted accounting rules and submit a report therein to the University Council.
5.The University President has the authority to approve disbursement from the investment account up to a maximum of fifteen million riyals for each case, and what exceeds that is the authority of the Chair of the University Council or his authorized representative.
6.The University President and Vice-Presidents shall not receive any remuneration or financial benefits from the University’s investment revenues.
*This article was added in accordance with the University Affairs Council Resolution No. (1/4/1442) dated 14/9/1442 H
Chapter Eleven: Combined Alternative Revenues Account and Expenditures
Article 51*
1.At the end of each fiscal year, the balance of the separate account mentioned in Article 47 of this Statute shall be transferred, with the exclusion of all contractual and operational obligations of this account, as well as what is decided to be transferred annually from the investment account mentioned in Article 50 of this Statute in accordance with the investment policy and its approved plan, to a combined bank account for the University’s alternative revenues under the name: the University’s Alternative Revenues Account.
2.The University keeps its deposited revenues in the Alternative Revenues Account, and it may invest it in accordance with the provisions of this Statute.
3.Disbursement from the Alternative Revenues Account shall be made by the approval of the University Council for the following types of expenditures:
a.Emergency projects for which there are no allocations in the approved University Budget.
b.Providing the urgent requirements and needs of the university, its colleges, and centers.
c.Allocating money to the university’s scientific, academic, and research programs and the student programs and activities that were not allocated in the University’s budget.
d.Operational expenses such as maintenance, cleaning, and security expenses, for which the allocated appropriations included in the University’s budget are not sufficient.
e.Capital projects that were not allocated or approved in the university’s budget.
f.Any other types of expenditure specified by the University Council.
4.In line with Article 49 (forty-nine) of this Statute, and Paragraph (3) of this Article, the University President has the authority to approve disbursement from the alternate revenues account up to fifteen million riyals for each case. Disbursements in excess of that amount must receive authorization from the Chair of the University Council or his authorized representative.
5.1. Except for the decisions issued by the Council of University Affairs related to the remunerations and benefits of the University President and Vice-Presidents, it is not permissible to spend any remunerations or financial benefits from the alternative revenues account for the University President and Vice-Presidents.
*This article was added in accordance with University Affairs Council Resolution No. (1/4/1442) dated 14/9/1442 H.
Chapter Twelve: General Rules
Article 52*
The university should coordinate with the Ministry of Finance to inform it of the balances and transactions of all the University’s alternative revenues accounts.
*This article was added in accordance with University Affairs Council Resolution No. (1/4/1442) dated 14/9/1442 H.
Article 53
For everything that is not provided for in a special provision in this Statute, the system of the Council of Higher Education and Universities, its executive statutes, orders, and decisions in force shall be applied in this regard.
Article 54
This Statute shall nullify the existing financial statutes at universities.
Article 55
Taking into consideration the provisions of the Council of Higher Education and Universities System and what is stated in this Statute, universities shall set the detailed procedures necessary for the implementation of this Statute.
Article 56
This Statute shall come into effect two months after the date of its approval
Appendix: Amendment of Articles 41 and 42
The Higher Education Council had previously taken its decision No. (2/12/1419) in the twelfth session, held on 29/2/1419 H to amend the provisions of Articles (41-42) of the Statute Regulating Financial Affairs in Universities.
Upon submitting the decision to the Custodian of the Two Holy Mosques for approval, the Council of Ministers issued Resolution No. (216) dated 18/9/1421 H stating the following:
The Cabinet
After reviewing the document received from the Cabinet’s Presidency No. 7/B/11236 dated 8/9/1421 H containing the Supreme Economic Council Resolution No. 9/21 dated 7/9/1421 H regarding the reorganization of student allowances in the higher education sectors with the aim of rationalizing them, and approval of the establishment of the University Higher Education Fund in accordance with the regulation attached to the resolution.
And after reviewing the Higher Education Council Resolution No. 2/12/1419 dated 29/2/1419H regarding the amendment of the provisions of Articles (41 and 42) of the Statute Regulating Financial Affairs in Universities related to the organization of student allowances in universities.
And after reviewing the Supreme Economic Council Resolution No. (9/21) dated 7/9/1421 H mentioned above,
The following has been decided:
1.Reorganizing student allowances in higher education sectors with the aim of rationalizing them so that they are not spent in the following cases:
a.Allowances for students who have exceeded the statutory period of study.
b.Allowances for students who have excused themselves from studying or who have requested a postponement in accordance with the regulations governing that.
c.Allowances for all students during the summer holiday, except for those who are registered for the summer semester. The Higher Education Council shall determine the date of application of this paragraph.
d.Allowances for students to whom academic warnings are directed in accordance with the relevant statutes therein.
2.Approval of the University Higher Education Fund, according to the organization attached to the decree.
3.Continuing to approve student allowances in the budgets of universities for the coming years, according to the actual student number in the last academic year when this decision is issued.
4.This decision and the organizational structure attached to it shall be published in the Official Gazette and shall come into force as of the date of issuance of the state’s general budget following the date of its issuance.