Hebron Agricultural Cooperative Society

-       The Hebron Agricultural Cooperative Society was established in 1986 as a cooperative agricultural institution for crop production, with the aim of meeting the agricultural needs of the members for crop production and improving their economic, social, cooperative and environmental conditions, and providing production inputs and advisory and technical services needed by the Society's members. The Diwan conducted a comprehensive audit of the Society's operations for the fiscal years ended 2018-2020, and the report reached the following main observations:

●     Regulatory affairs of the Society

-       The Society is managed by an administrative committee whose term expired on 25-5-2019, contrary to the Society's bylaws, which specify the term of the administrative committee as two years, and no new administrative committee elections were held up to the date of the audit.

-       The general assembly members did not hold ordinary or extraordinary meetings during the years 2018-2020, contrary to the Cooperative Associations Law No. 20 of 2017 and the Society's internal bylaws.

-       The general assembly did not exercise its powers stipulated in the Society's bylaws, such as: reviewing the board of directors' reports on the Society's activities, approving the financial reports, approving the statutory auditor's report, dismissing members of the administration and withdrawing confidence from them, and preparing for elections..!

●     Financial and administrative organization of the Society

-       No audited financial statements were prepared for the Society from 2018 through 2020.

-       The president of the Society and the treasurer (a member of the board of directors) manage all the Society's financial operations, including collecting and recording the Society's internal revenues and executing all disbursements (checks and cash), without approval of the disbursement operations by the Society's administrative committee and without supporting asset disbursement documentation.

-       There are insufficient control procedures over the Society's revenue fund with regard to controlling the depositing of amounts to the bank.

-       The Society did not develop a detailed register of fixed assets owned by the Society showing the historical cost of each asset and its location.

●     Society revenues and expenses for the period 2018-2021

-       There is not sufficient and reasonable assurance regarding the accuracy, fairness, and completeness of revenues for the period from 1-1-2018 to 31-12-2020, in addition to the accuracy and correctness of the amounts collected, due to the lack of accounting recognition based on manual receipt vouchers for all revenues that occurred.

-       On 13-11-2017, the Society's administrative committee waived a usufruct right in Akkar in exchange for receiving 90,000 دينار أردني, and the payment was made to the Society. The audit revealed the following:

●     The purchase price of the property, 90,000 دينار أردني , was received in cash by the president of the Society and the treasurer, and the purchase price was not deposited into the Society's bank account!

●     The president of the Society and the treasurer stated that they spent the amount to cover the Society's operating expenses, without providing documentary evidence to substantiate that!

●     The president of the Society and the treasurer (a member of the administrative committee) executed disbursements totaling 104,862 shekels by checks drawn on the Society's bank account, where it was found that:

1-   No asset disbursement vouchers were issued for the disbursement transactions and they were not recorded in the asset accounting ledgers!

2-   All checks issued were signed by the president of the Society and the treasurer, without informing the Financial Data Monitoring Committee at that time!

-       The Society has no control procedures for purchased materials (fodder), which amounted to 36,305 Jordanian dinars during the period 2018-2021, in terms of input and receipt vouchers and periodic inventory minutes!

●     Warehouse for establishing an Asaf-breed sheep farm

-       The farm's loss (revenues – expenses), according to manual receipt and disbursement vouchers, over 33 months amounted to 22,339 Jordanian dinars!

-       The number of missing ewes during the same period was 127 heads, whose value, based on their historical cost according to purchase price, is estimated at 82,423 dollars!!

-       The Society's management did not carry out periodic supervision, care and monitoring, including inspecting the size of the flock, following up on its feeding and treatments and the number of births..!

-       The Society does not have records containing data and details of the sheep flock in terms of their numbers, number of births and number of deaths.

●     Pruning (rejuvenation) and tree spraying project

-       The Society does not have any accounting, property or financial records that confirm the correctness of recording the project's financial transactions and that clarify the work results and the obligations arising from them..!

-       No supporting documents or completion reports were available at the Society to verify the validity of the procedures for selecting contractors for pruning and tree spraying!

-       There are no completion reports showing the project implementation stages for the beneficiaries (farmers).

●     Cooperative Work Authority actions

●     - The Authority requested that the Society's management rectify its financial and administrative situation during 2018-2019 and 2020 through its periodic correspondence in this regard, but the Society and the administrative committee members did not comply with the Cooperative Work Authority's procedures.

●     Response to the report: that the issued oversight reports ( do not require a response ) from the Society!!

●     Action on the report: The report was directed to the Cooperative Work Authority with instructions to appoint a temporary committee from the general authority for a period not exceeding 6 months to rectify the legal, financial and administrative situation in the Society.