Al-Quds University’s Operations for the Financial Year Ended 31-12-2018

- The State Audit and Administrative Control Bureau (SAACB) carried out a financial audit of the operations of Al-Quds University for the year ended 31-12-2018, and the following are the main observations that were recorded:

· Basis of the qualified opinion

- The existence of petty cash and cash box accounts that are incorrect.... and overdrawn..., intermediate bank accounts, and variances in the balance of checks in the process of collection, all of which affect the accuracy of the true balance...... (cash and cash equivalents), in the amount of 2,342,291 shekels...!

- The existence of intermediary accounts that have not been processed and closed, which affect the accuracy of accounts payable in the amount of 4,245,269 shekels, and the financial liability due.... to the Pension Authority.... was not disclosed separately in the notes to the financial statements..!

- There is no clear and approved policy for the allowance for doubtful debts regarding the method of calculation and the mechanism for determining amounts that are likely not to be collected from customers, where the allowance balance at the end of the period, 2018, amounted to 2,964,327 dinars, a balance unchanged since 2016, despite the increase in accounts receivable in the years following 2016..!

- There is a difference of 6,708,933 dinars between the value of the end-of-service provision according to the Administrative Affairs report, amounting to 24,616,040 dinars, and the value of the provision in the financial statements, amounting to 31,324,973 dinars...!

- There are a large number of outstanding items in cash payment vouchers issued years ago by transfer or by postdated check that were not processed up to the audit date, and outstanding items remained showing in the intermediary account..!

- It was not possible to perform audit procedures on the balances of accounts receivable and to verify their accuracy due to the absence of accounting entries linked to them, or vouchers that can be examined, or confirmations of the balance’s accuracy, and there is a variance in the balance of donors’ receivables of 289,529 dinars between the trial balance and the audited financial statements, which was not adjusted in the trial balance...!

- The balance of prepaid expenses in the financial statements was not reconciled through 2020, where the total of amounts prior to 2018 was 1,388,079 dinars, including balances that have not moved since 2010 amounting to 131,391 dinars, and a variance of 359,103 dinars between the adjusted trial balance and the audited statements.

- The Bureau raises questions with the concerned parties (the Minister of Higher Education and the Board of Trustees) regarding the lawful term of office for university presidents, in conformity with the provisions of Law No. 6 of 2018 concerning Higher Education..

- The accumulated deficit increased in 2018 in a manner that affects the university’s ability to meet its long- and short-term obligations, where current liabilities amounted to 124% of current assets..!

- The university makes disbursements directly from revenue funds and does not deposit revenues in the bank account..!

- Checks received from students are kept in the university’s check box for months and are not deposited daily, noting that registration for the academic term ended more than a month ago..

- Admission of bachelor’s students to the university with a high school average of less than 65%, contrary to the decision of the Minister of Higher Education in 2013 regarding admission criteria to Palestinian higher education institutions,

- Granting some students financial waivers by the Financial Department without any criteria or instructions, and without the approval or authorization of the President of the University..!

- Equivalency of university degrees were not attached in employee files for the year 2020, contrary to the provisions of Law No. 6 of 2018

- Some employees working at Al-Quds University also work at governmental institutions and ministries, contrary to regulations, government laws, and Cabinet decisions in this regard...!

- The university paid allowances to some of its employees without legal entitlement, and overtime is paid to non-executive staff, deans, and vice presidents...!!!

- An amount of 720,835 dinars was paid during 2018 as additional salaries to some university employees for appointing them to external projects, despite their performing the project work during official working hours...!

- The university did not collect outstanding receivables due from the Arab Institute amounting to 500,714 dinars for years, which may lead to the loss of the university’s financial rights..!

- The university did not follow up and collect advances granted to employees, where the balance of employee advances was 848,090 dinars at the end of 2018, which negatively affects the university’s financial position..!

- The university invested in companies, entered into investments, and disbursed funds without achieving any financial return due to delays in starting those projects, where amounts of 287,296 dinars and 1,196,365 shekels and 30,000 dollars were disbursed... and the university did not tender these investments, nor is there an investment decision issued by the University Office (the Administrative Body) specifying the investment objective and company management...

- The Financial Department at the university does not have a legally audited auditor’s report on the financial data of the investments and partnerships...?

· Date: 4-9-2022