1. Describe how the institution monitors, analyzes, and controls its financial operations including: (a) the controls implemented by the institution to ensure that sound and ethical financial practices are followed and (b) the individuals who are responsible for financial monitoring and the functions and authority of each. Attach a copy of the written policies for proper financial controls and supervision of financial management staff?

· Hail College of Technology (HCT) is totally funded by the government and provides its training services free with no tuition to the Saudi trainees, Technical and Vocational Training Corporation (TVTC) is fully responsible for the HCT's financial monitoring, balances and final statement of accounting of the corporation at the end of each fiscal year in which all government financials are controlled by the Ministry of Finance.

· To be in line with the Saudi economic status, the accounting system administered by TVTC along with all its operations is run by several highly qualified employees. It is equipped with an up-to-date computer network specially developed to cope with the contemporary demands and new technologies.

· The Directorate General of Administrative and Financial Affairs assumes all financing procedures related to the Corporation's employees and its agents automatically. It undertakes the budget of the Corporation ratified by the Council of Ministers as per the applied accounting rules and regulations and in accordance with the instructions and directives of the Ministry of Finance. Among such activities, preparing the related lists, balances and final statement of accounting of the Corporation at the end of each fiscal year. Such activities cover the following:

i. Reviewing and auditing payment orders and authorizations to ensure compatibility with the related procedures and regulating documents.

ii. Coordinating with the D.G. of Trainees Services and D.G. of Information Technology regarding the male/female trainees' rewards and stipends.

iii. Matching, monthly the issued checks with the bank's statements of account.

iv. Auditing payrolls, wages and dues of the staff and departments.

v. Following up and replying to the directives/ letters issued by the governmental controlling bureaus regarding the Corporation's final statement of the account or other related financial issues upon coordination with the various TVTC's departments.

vi. Steps and procedures of preparing the budget draft of the Corporation's affiliated departments.

The financial affairs section is responsible for managing the Corporation's financial resources, supporting departments and sections in administering the process of outlaying, preparing the Corporation's general balance sheet, preparing financial reports, managing the warehouses and purchasing department, inviting tenders, following up the execution of contracts as well as the followings:

i. Preparing and devolving the monthly, quarterly and annual financial statements to the director of the related department.

ii. Managing cash payments, budgetary payments and future anticipated payments.

iii. Analyzing liquidity and presenting proposals for the available levels of funding to the director of the related department for the purposes of investment.

iv. Supervising monthly the banking accounts and financial inputs in the records.

v. Coordinating with the internal auditor for conducting the annual financial auditing.

vi. Submitting reports regarding the progress of financial activities in the section to the director of the related department.

vii. Preparing the financial procedures guidebook.

viii. Setting up and implementing a suitable system of measuring the financial procedure indicators to increase the Corporation's financial resources.

ix. participating in the process of setting up and evaluating the financial strategy and financial transactions, hence submit reports to the directors of the related department.

x. Examining the financial and accounting records to take the necessary actions.

xi. Implementing the rules and procedures of preparing the budget and annual estimations in coordination with the Corporation's department.

xii. Implementing the rules and procedures of purchasing, selling and leasing according to applied regulations set in the bylaws.

xiii. Preparing reports, periodic financial lists and financial statement accounts to discuss it with the internal auditor.

The Corporation's budget draft consists of all the detailed information regarding financial estimations of the actual needs. It covers all the items, programs and projects of the four chapters of the budget. Upon completion, it is submitted to the authorized official for approval, provided that the Department of Planning and Budgets completed it by the date specified by the Ministry of Finance according specific procedures for each of the following chapters which can be found in the exhibits; Chapter One (Salaries, wages and allowance), Chapter Two (Operation Expenses), Chapter Three (Programs and Contracts for operation, maintenance and cleaning and Chapter Four (Projects).

All TVTC's projects must be enlisted in collaboration with the Department of Projects and General Services and the Department of Administrative and Financial Affairs. TVTC has a department for internal auditing empowered with financial responsibilities for monitoring the mechanisms and procedures of financial expenditure, hence, ensuring that all its procedures are implemented correctly as required. It is also worth mentioning that TVTC is financially monitored by the General Auditing Bureau (GAB) which is a governmental body that monitors the performance of governmental bodies and institutions. Therefore, TVTC must fulfill its responsibilities and obligations towards the (GAB).

attachment

Exhibit 3.B.1-3 Auditing Expenditure and Governmental Accounts Guidebook.pdf

Exhibit 3.B.1-1 Financial Regulations for TVTC.pdf

Exhibit 3.B.1-2 Activities of the Internal Auditing Units at the Governmental Bodies.pdf

Exhibit 3.B.1-4 Performance Monitoring Guidebook.pdf

Exhibit 3.B.1-5 Administrative and Financial Procedures.pdf

2. How frequently does the institution review and assess its finances? Who participates in the development and final approval of the budget?

· HCT operates under The Technical and Vocational Training Corporation (TVTC) management. The budget development and approval process are centrally managed by TVTC. The Corporation's budget covers all the items, programs and projects of the four chapters of the budget and is submitted to the authorized official for approval, provided that the department of planning and budget fulfilled its obligation as per the appointed date specified by the Ministry of Finance to prepare budget draft of the training units affiliated to the Corporation. In addition, HCT receives an imprest fund from TVTC. The fund is categorized into purchase type such as maintenance, materials, tools and other purchases. HCT files a procurement process document which is published by the TQM Department and maintained in Exhibit (3-B-2) sample of HCT Financial Procedures. It explains the procurement process as well as some documents used for the procurement process such as the warehouse storage document.

Attachment

Exhibit 3.B.2-1 Sample of HCT financial procedures.pdf

3. Describe all third-party contracts that provide consultative or administrative services affecting the financial status of the organization (e.g. accounting services, financial aid processors, etc.).

· The Financial system is audited by the head office of TVTC through a financial auditor. Previously, the financial and warehouse records were reviewed periodically by a chartered accountant to ensure conformity with financial regulations.

4. Are bond(s) required by any regulatory/licensing authorities? If so, by whom, and in what amount(s)? Attach a copy of the bond(s).

· Not applicable because HCT/TVTC provides training totally free of charge.

5. Are the tuition, fees, and other charges consistent for all students who enroll at the same time? Describe any tuition discounts or waivers provided by the institution under contractual arrangements, within the past twelve months.

· Not applicable because HCT/TVTC provides training totally free of charge.

6. Describe the process for receiving and depositing student funds as well as providing proof of payment. Do student financial records clearly identify: (a) the charges for tuition and fees; (b) the amounts and dates of each payment; and (c) the balance after each payment? Attach a copy of the policy and procedures governing the documentation of student accounts. Also attach an actual sample of a completed ledger card and/or accounts receivable (A/R) record for a student, company, or contract. Are these records maintained electronically and/or in hardcopy?

· Not applicable, because HCT/TVTC provides training free of charge.

7. Attach a copy of the institution’s cancellation and refund policies, which must comply with ACCET Document 31 – Cancellation and Refund Policy, and, if required, applicable state regulations. If contractual agreements exist with companies or other sponsoring organizations, describe the impact of such agreements on these policies, if any.

· Not applicable, because HCT/TVTC provides training free of charge.

8. Attach a list of all drops/withdrawals that have occurred within the past six months. During the past six months, were all required refunds made within either forty-five (45) days from the documented date of determination or cancellation or, if applicable, the shorter time period required by state regulation? If not, provide an explanation for each late refund, including the remedial actions taken to ensure timely future processing.

· Not applicable, because HCT/TVTC provides training free of charge.

9. Attach a copy of the institution’s written procedure for processing refunds. Also attach a sample of an actual completed refund calculation worksheet for a recently dropped/withdrawn student.

· Not applicable, because HCT/TVTC provides training free of charge.