ADVOKS GLOBAL · KENYA
The Co-operative Societies Rules
18. Establishment of the Fund
Edition: 2022-12-31 · In force
18. Establishment of the Fund
(1)There is hereby established a fund to be known as the Management and Supervision Fund and every registered society shall, unless exempted in writing by the Commissioner, pay into it annually an audit and supervision fee.(2)The Commissioner shall administer the Fund and the balance of the Fund shall be kept with the accounting officer who shall be authorized to accept receipts and to make payments in accordance with the provisions of these Rules:Provided that the accounting officer shall not make any payment from the Fund unless he holds a cash balance on behalf of the Fund sufficient to cover the payment.(3)The receipts to the fund shall consist of—(a)fees under sub-rule (1) as fixed by the Commissioner for the better carrying out of the provisions and purposes of section 25 of the Act;(b)ten per centum of the audit fees paid by the society to the auditor in respect of the annual accounts in question; and(c)fees paid under rules 16 and 17(2).(4)Expenditure charged to the Fund may include expenditure for—(a)purchases of specialized stationery, office machinery and equipment for use by the Commissioner in the administration of co-operative societies and the Fund;(b)repairs of office machinery and equipment purchased from the management fund;(c)temporary extra clerical assistance, authorized by the Commissioner as necessary from time to time in connection with the audit and supervision of co-operative societies;(d)payment of professional audit fees which shall be subsequently recovered wholly or in part from co-operative societies concerned;(e)liquidation expenses including legal fees and costs where no moneys are available to the liquidator and where in the opinion of the Commissioner such expenditure should be incurred for the proper carrying out of the liquidation; and(f)any other expenditure approved by the Treasury including the investment of funds surplus to requirements.