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Skills Development Act, 1998 (Act No. 97 of 1998)


Constitution of the Manufacturing, Engineering and Related Services Sector Education & Training Authority (MERSETA)

18. Finances of the MERSETA


18.1 The MERSETA shall be financed from:
(a) The skills development levies, interest and penalties collected in respect of the MERSETA as allocated in terms of sections 8(3)(b) and 9(b) of the Levies Act ;
(b) Monies paid to it from the National Skills Fund;
(c) Income earned on surplus monies deposited or invested;
(d) Income earned on services rendered in the prescribed manner;
(e) Monies received from any other legal source.


18.2 The monies received by the MERSETA must be managed as contemplated in sections 14(2), 14(3), and 14(5) of the Act.


18.3 All money, funds, property or other assets owned, vested in, held, acquired or received by the MERSETA shall be held, controlled and administered by the Executive Committee, and shall be applied to the achievement of the objectives of the MERSETA in accordance with its policies and this constitution to fund the performance of its functions and to pay for its administration.


18.4 Any banking account opened in the name of the MERSETA shall be operated by the Chief Executive Officer and three other co-signatories appointed by the Executive Committee, at least two of whom must be members of the Executive Committee. The withdrawal of monies from any bank account of the MERSETA by cheque, credit transfer or by any other means, requires the written authority of at least two (2) signatories, at least one (1) of whom is a member of the Executive Committee.


18.5 The books of account, statements of account and financial statements of the MERSETA must be audited annually by the Auditor-General. The Auditor-General must compile a report on the audit and submit a copy of it to the Minister and the Chairperson of the Governing Board. The Chairperson must provide each member of the Governing Board with a copy of the report of the Auditor General.


18.6 The MERSETA, through the Executive Committee assisted by the Finance Functional Standing Committee, shall, in accordance with the standards of generally accepted accounting practice:
(a) Keep proper record of all its financial transactions; assets and liabilities;
(b) Submit annually to the Department of Labour, within one (1) month after receipt of the audited financial statements from the Auditor-General, an original copy of such financial statements; and
(c) For purposes of sound financial management, comply with the applicable provisions of the PFMA.