Report of Driving School Owners — Nablus

● The organizational status of the Syndicate

- The Syndicate does not have a computerized system through which revenues collected, bank account management, and disbursement and receipt operations are recorded and controlled; instead, it is limited to recording receipt and disbursement movements only, on an Excel program.

- There are no documentary vouchers supporting the Syndicate’s receipt and disbursement operations that relate to the period of the previous administrative bodies from 2016–2018.

● The financial situation and the legal auditor’s report

- It appears that the Syndicate’s external auditor reports were not prepared for each year separately, as the Syndicate limited itself to a financial report covering the Administrative Board’s period from 1-5-2016 until 30-4-2018, contrary to the provisions of Article No. 17 of the Syndicate’s Internal Regulations.

- It appears that the accounts were not classified and recorded correctly regarding the recording and classification of the amount of loans that were granted to driving schools in 2016, amounting to 84,000 shekels, where they were recorded as expenses, not as receivables in favor of the Syndicate.

- The Syndicate paid a cash amount of 135,000 shekels to the Syndicate’s affiliated schools for the purpose of purchasing laptop computers, one laptop per school, without obtaining confirmations from the schools proving that they actually purchased the devices..!

● The Syndicate’s revenues from theoretical and practical tests

- There are differences amounting to 169,725 shekels (shortfall) between the value of revenues (the recalculation that relied on the approvals obtained by the Diwan from the Ministry of Transport and Communications) and the value of revenues (recorded) in the financial statements for the period May 2016 until April 2018; accordingly, the value of revenues recognized in the Syndicate’s external auditor’s report for the same period is incomplete.. and by 27% of the total recorded examination fees.

- There are differences amounting to 20,644 shekels (shortfall) between the value of revenues (the recalculation that relied on the approvals obtained by the Diwan from the Ministry of Transport and Communications) and the value of revenues (recorded) in the financial statements for the period May 2018 until December 2020, and by 2% of the total recorded examination fees.

- Response to the report: Although the Syndicate responded to the observations contained in the report, its justifications were not convincing, and the observations were not amended...

- Action on the report: The report was referred to the Anti-Corruption Commission in addition to the Syndicate’s Board of Directors.