Material Deficiencies in Governance and Management

· (Works of the Nablus Central Zakat Committee for the year 2023)

● Episode No. (17)

● The annual report of the State Audit and Administrative Control Bureau (SAACB) for 2024 includes an audit report on the works of the Nablus Central Zakat Committee for the year 2023, which showed a clear weakness in the systems of governance and management at the Nablus Central Zakat Committee and its affiliated projects (Academy of the Holy Quran, Nablus Medical Complex, Al-Safa Factory). It was found that the approved organizational structure was absent, no annual budget or unified financial statements were prepared, and there was weakness in closing the accounts. Shortcomings were also noted in cash and bank management in terms of lack of daily deposits, differences in cash boxes, and failure to perform bank reconciliations.

● On the purchases and expenditures side, procedures for tenders and tax invoices were not followed, in addition to the absence of agreements with suppliers and partners. Violations were also detected in the management of Al-Safa Factory after its closure, and failure to document payable liabilities. As for the Academy and the Medical Complex, observations appeared related to discounts, absence of receiving committees, and weak documentation.

● The observations also included salaries and wages (tax differences, absence of clear contracts), and the Employees’ Savings Fund (absence of internal regulations, excessive loans) such as: one employee obtaining more than one loan previously from the fund (the Employees’ Savings Fund of the Academy of the Quran), where the value of the loans obtained by this employee amounted to about three million shekels; the Committee also did not take any action to reduce the amounts due from that employee at the time of his resignation, nor did the Committee organize independent accounts for the sponsorships of orphans and needy families, and field visits were not conducted to verify their conditions. In the properties file, mechanisms for inventorying and registering endowment properties were absent, while assets and warehouses lacked records and periodic inventory.

● In conclusion, the absence of a human resources unit and deficiencies in electronic archiving systems and comprehensive databases were revealed, reflecting an urgent need for comprehensive reforms in governance, financial and administrative control, and the management of affiliated projects, which are sought to be implemented to rectify all of the above observations in accordance with the regulations, and the standards of financial and administrative control, and the standards of good governance with commitment and transparency.