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Medical Schemes Act, 1998 (Act No. 131 of 1998)

Chapter 7 : Financial Matters

37. Annual financial statements


(1) The board of trustees shall in respect of every financial year cause to be prepared annual financial statements and shall within four months after the end of a financial year furnish copies of the statements concerned together with the report of the board of trustees to the Registrar.


(2) The annual financial statements referred to in subsection (1) shall be furnished to the Registrar in the medium and form determined by the Registrar and shall inter alia consist of—
(a) a balance sheet dealing with the state of affairs of the medical scheme;
(b) an income statement;
(c) a cash-flow statement;
(d) a report by the auditor of the medical scheme; and
(e) such other returns as the Registrar may require.


(3) The annual financial statements of a medical scheme shall, subject to the provisions of the Public Accountants' and Auditors' Act, 1991, be audited by an accountant and auditor registered in terms of that Act except where such accounts are to be audited by the Auditor-General in terms of any law.


(4) The annual financial statements shall—
(a) be prepared in accordance with general accepted accounting practice;
(b) fairly present the state of affairs and the business of the medical scheme and the results thereof at the end of the financial year concerned and the surplus or deficiency of the medical scheme for that financial year;
(c) by means of figures and a descriptive report, set out and explain any matter or information material to the affairs of the medical scheme; and
(d) be accompanied by the management accounts in respect of every benefit option offered by the medical scheme indicating the financial performance thereof and the number of members enrolled per option.


(5) The board of trustees' report referred to in subsection (1) shall—
(a) deal with every matter which is material for the appreciation by members of the medical scheme of the state of affairs and the business of the medical scheme and the results thereof; and
(b) contain relevant information indicating whether or not the resources of the medical scheme have been applied economically, efficiently and effectively.


(6) Notwithstanding anything to the contrary in this section, and without derogating from other powers conferred on the Registrar in terms of this Act, the Registrar may, on a quarterly basis, require the board of trustees to prepare and furnish to him or her financial statements, in any specified medium or form.