Bani Na'im Cooperative Society for Sheep Breeding — Palestine

- From the content of the texts of the reports of the General Department of Oversight of Institutions and Non-Governmental Organizations NGOs that reached more than 4,000 founders, including "جمعية بني نعيم التعاونيه لتربية الاغنام" , which was established in 2000, and the association aims to improve sheep breeding, develop it, manufacture dairy products, and a garousha for fodder.

- The Audit Bureau's 2019 report on جمعية بني نعيم concluded with the following main observations:

· Internal regulations:

- There is no approved financial system or financial instructions followed by the association, and the association does not have an accounting system, whether computerized or manual, nor are there controlled document templates and forms.

- The association's internal regulations contain many legal provisions and texts that have become void since 2017..!

- It should be noted that the administrative council is performing its duties without a legal basis, given that its term expired on 19-12-2017.!

- The audited financial statements for 2017 do not fairly reflect the true financial position of the association, and the auditor did not exercise sufficient care to ensure the accuracy of the accounts.

- A net loss was realized from the sale of the association's assets (the garousha and the dairy manufacturing unit) in the amount of 56,901 dinars, which represents accumulated deficit for more than three years, and is more than four times the association's capital (12,000 dinars), with the association recycling it from year to year without addressing it, which affected the association's continuity of operations.!!

- The association did not achieve any revenues during 2017, as it realized a deficit during the year in the amount of 1,988.17 Jordanian dinars, whereas depreciation expenses for the same year amounted to 1,788.17 dinars,

- A marked increase in the association's accounts receivable in 2017, where they increased by 47,002 dinars, approximately 41% of the total assets (excluding the accumulated deficit).

· The association's land :

- The administrative council purchased a plot of land directly for the amount of 18,000 dinars from a member of the association's administrative council, without a decision from the general assembly or a board resolution authorizing that.

· Loans and grants:

- A disclosure was made of a loan in the amount of 37,873 dinars, financed by the Agricultural Relief Association, and a grant from the Agricultural Work Committees project in the amount of 4,804 dinars, on the liabilities side of the statement of financial position for 2017, and it was not settled by repayment or converted into a grant, which served to inflate the liabilities.

- A disclosure was made of a grant from the Palestinian Center for Economic and Social Development (the garousha), in the amount of 13,135 dinars on the liabilities side of the statement of financial position, 2017, although the garousha (had been sold for 18,000 shekels in 2016)..! This served to inflate the liabilities side, which affected the 2017 financial statements and the correctness of the association's financial position.!

· Expenses :

- All expenses, regardless of their size, are covered in cash.......! And cash disbursements and sales transactions are executed without attaching supporting sales and disbursement documents....!

- Purchases were made directly from the supplier without adhering to the generally accepted procurement rules and procedures, in principle!

- Action on the report: the report was directed to the Anti-Corruption Commission and was not directed to the association due to suspicion of corruption, and the Council of the Auditing Profession was corresponded with regarding the observations contained in the report concerning the association's external auditor.!

· And I say, commenting from my side)...! The researcher, follower, reader, or anyone who reads such oversight reports on some non-governmental organizations in Palestine, which number more than 4,000 organizations, is struck with shock and astonishment..! When you do not read a report about an association or a body without smelling the odor of mismanagement of public funds, embezzlement and unilateral action by one person or a group of influential individuals in the administrative committees or boards of directors,... when you see.... that there is no financial or accounting system, whether manual or computerized, no accounting records, no inventory, no registration..... and that expenditure disbursements are made in cash only...! Regardless of the amount......... and without supporting documents..! And you see purchase decisions made by one of the bullies in the administrative committees, or boards of directors, or custodians of the funds... so purchases are made directly .!...and he pays no heed to any instructions, violating procurement instructions according to rules and customs!.. Also, accounts receivable from members of the general assembly in some associations have reached unjustified amounts.... So how did accounts receivable, for example... in 2017 alone, in "جمعية بني نعيم.".. exceed an amount of 47,000 dinars!!.. without follow-up on receivables, and without disclosing the reasons! It was also noted that the external auditor was negligent in performing his duty and professional standards...! So how, then, will cooperative and collective work be fruitful and free of suspicions...!

· The principle in these associations is collective benefit, according to the legislation and regulations that established them, not that most of them incur losses.!... And the realization of losses, their accumulation and recycling, appeared in the reports as a recurring characteristic of some of these associations...... Why? There are many grants and amounts that these associations receive..in order to assist and enable them to serve their members and the surrounding community.....and yet they do not know how matters turn into losses!! Public trust in some of these associations has become shaken..!.. They are viewed with suspicion and a lack of credibility, and this calls on those in authority to exercise oversight...and follow-up and auditing...so that such units are organized in accordance with the regulations governing them..and that severe punishment be applied to those who seize public funds.....so that we can at least take one step forward, steadily and without looking back.... For the sake of sustainability and credibility of the cooperative and civil work for the good of the Palestinian community.....

· Dated 10-12-2020