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Financial Regulations

CONTENTS

A General Provisions

1. Background

2. Status of Financial Regulations

B Corporate Governance

3. The Court

4. Council

5 Senate

6. Committee Structure

6.1. Scrutiny and Finance Committee
6.2. University Executive Board
6.3. Audit Committee
6.4. People and Remuneration Committee
6.5. Investment and Development Committee
6.6. Other Committees

7. University Members and Officers with Financial Responsibility

7.1. Vice-Chancellor
7.2. Director of Finance
7.3. Head of Internal Audit Services
7.4. Director of Estates and Facilities
7.5. Budget Holders
7.6. All Members of Staff

8. Risk Management

9. Code of Conduct

9.1 Commitment and Conduct
9.2 Disclosure of Interests
9.3 Signatory to a University Contract and Disclosure of Interests
9.4 Receiving Gifts or Hospitality
9.5 Accepting or offering inducements

C Financial Management and Control

10. Financial Planning and Budgetary Control

11. Accounting Arrangements

11.1. Financial Year
11.2. Basis of Accounting
11.3. Format of Financial statements
11.4. Provision of Financial Statements and financial management information
11.5. Accounting Systems and Records
11.6. Retention of Accounting Records
11.7. Public Access
11.8. Taxation
11.9. International mobility

12. Audit Requirements

12.1 General
12.2 External Audit
12.3 Internal Audit
12.4 Value for Money
12.5 Other Auditors

13. Treasury Management

13.1. Treasury Management Policy
13.2. Banking Arrangements
13.3. Borrowing & covenants
13.4. Investments

14. Income

14.1. General
14.2. Receipts of Cash, Cheques and Other Negotiable Instruments
14.3. Receipts by Credit or Debit Card
14.4. Sales invoicing and the collection of debts
14.5. Student Fees
14.6. Write offs
14.7. Credit Notes

15. Research Grants and Contracts

15.1. Acceptance of Research Grants and Contracts
15.2. Grant and Contract Conditions

16. Other Income Generating Activity

16.1. Ongoing Sales of Products Services
16.2. New Income generating or trading activity
16.3. Private Consultancies and Other Private Work

17. Intellectual Property Rights and Patents

17.1. General
17.2. Patents
17.3. Intellectual Property Rights
17.4. Commercial exploitation of intellectual property
17.5. Disposals of intellectual property

18. Expenditure and Purchasing

18.1. General
18.2. Scheme of Delegation/Financial Authorities
18.3. Procurement
18.4. Capital Expenditure
18.5. Purchasing Cards
18.6. Payment of Invoices
18.7. Reimbursement of expenses
18.8. Advances
18.9. Giving Hospitality
18.10. Making donations

19. Pay Expenditure

19.1. Remuneration Policy
19.2. Appointment of Staff
19.3. Superannuation Schemes

20. Assets

20.1. Land and Buildings
20.2. Fixed Asset Register
20.3. Inventories
20.4. Stocks and Stores
20.5. Safeguarding Assets
20.6. Personal Use
20.7. University owned vehicles
20.8. Asset Disposal
20.9. All Other Assets
20.10. Loss of assets or damage to property
20.11. Leasing property

21. Funds Held on Trust

21.1. Gifts, Benefactions and Donations
21.2. Student Welfare and Access Funds
21.3. Trust Funds

22. Other

22.1. Insurance
22.2. Travel Insurance
22.3. Establishing new companies, branches and associates.
22.4. Appointment to the Boards of subsidiary and associated companies
22.5. Memoranda of Understanding with subsidiary companies
22.6. Subsidiary and Associated company reporting requirements
22.7. Security over Data and Information
22.8. Safeguarding Funds Against Misuse
22.9. Fraud Policy and Response Plan
22.10. Safekeeping of Legal Documents
22.11. Students’ Union
22.12. Signing of Official Documents
22.13. Use of the University Seal
22.14. Provision of Indemnities and guarantees
22.15. Disclosure of Interests
22.16. Disclosure of outside directorships and partnerships


A GENERAL PROVISIONS

1 Background

1.1
The University is a chartered corporation. Its structure of governance is laid down in the Charter and Ordinance. The Charter can only be amended by the Office for Students. The University is accountable through its Council which has ultimate responsibility for the University’s management and administration.

1.2
The University is an exempt charity by virtue of the Charities Act 2011. It is not required to register with the Charity Commission but is subject to its regulatory powers, which are monitored by the Office for Students.

1.3
The University is a registered provider with the Office for Students and as such must abide by the Terms and Conditions of funding for higher education institutions. This includes an Audit Code of Practice that requires it to have sound systems of financial and management control. The financial regulations of the University form part of this overall system of accountability.

 

2 Status of Financial Regulations


2.1
This document sets out the University’s financial regulations. It translates into practical guidance the University’s broad policies relating to financial control. It applies to the University, its trusts, subsidiary undertakings, branches and other entities where the University has management control.

2.2
These financial regulations are subordinate to the University’s Charter and Ordinances and to any restrictions contained within the Office for Students terms and conditions of funding and Audit Code of Practice.

2.3
The purpose of these financial regulations is to provide control over the totality of the University’s resources and provide management with assurances that the resources are being properly applied for the achievement of the University’s strategic plan and business objectives:
• financial viability
• achieving value for money for both the taxpayer and students
• fulfilling its responsibility for the provision of effective financial controls over the use of public funds
• ensuring that the University complies with all relevant legislation
• safeguarding the assets of the University.

2.4
The Director of Finance shall ensure that updated copies of the financial regulations are available to all members of Council, Budget Holders and all persons connected with the finances of the University.

2.5
Compliance with the financial regulations is compulsory for all officers, staff and students connected with the University. Refusal to comply with the financial regulations will be grounds for disciplinary action under the University’s disciplinary procedures. The Council will be notified of any such breach through the Audit Committee. It is the responsibility of UEB members, Heads of School and Heads of Directorate to ensure that their staff are made aware of the existence and content of the University’s Financial Regulations and supporting financial policies and procedures.

2.6
The Scrutiny and Finance Committee is responsible for maintaining a regular review of the financial regulations for internal management and for advising the Council of any additions or changes necessary.

2.7
In exceptional circumstances the Scrutiny and Finance Committee may authorise a departure from the detailed provisions herein; such departure to be reported to the Council at the earliest opportunity.

2.8
The University’s detailed financial procedures set out precisely how these regulations will be implemented. They are contained in the Financial Manual (incorporating Financial Policies and Procedures) and Finance Practical Guides, which are maintained by the Director of Finance and made available to all staff via the Finance website.

B CORPORATE GOVERNANCE

3 The Court

3.1
The Court has no direct responsibility for the University’s financial administration, but the Court’s members at its meetings are entitled to ask questions on the published Financial Statements and or any other financial matter.

4 Council


4.1
The Council of the University is the governing body of the University. It has its powers and duties conferred upon it by the Charter and Ordinances and is responsible for the management and administration of the revenue and property of the University and has general control over the conduct of all the affairs of the University. Its financial duties are to:
• ensure the solvency of the University
• safeguard the University’s assets
• ensure the effective and efficient use of resources
• ensure that the funds provided by the OfS are used in accordance with the terms and conditions specified
• ensure that financial control systems are in place and are working effectively
• ensure that the University complies with the OfS Audit Code of Practice
• approve the University’s strategic plan
• approve annual budgets and long term financial forecasts
• approve the annual Financial Statements
• appoint the external auditors to the University

4.2
The Council is empowered to:
• appoint bankers, and to cause proper books of account to be kept in respect of money received and expended by the University, and for the assets and liabilities of the University, provided that before determining any question of finance which affects the academic policy of the University, the Council shall take into consideration any recommendation by the Senate
• invest any monies belonging to or held by the University
• acquire and dispose of real and personal property on behalf of the University, whether freehold or leasehold
• enter into, vary, carry out and cancel contracts on behalf of the University
• determine all University fees where these are not regulated
• appoint members to the Audit Committee

The full powers of the Council are given in Ordinance.

4.3
The Council discharges its financial responsibilities by delegating duties to Committees, particularly the Scrutiny and Finance Committee and the University Executive Board and senior officers and by maintaining an overview of general financial policy with adequate reporting structures to ensure that the agreed policies are being implemented.

4.4
All members of Council must be aware that they have a responsibility for the University’s finances and must ensure that they have sufficient information made available to them to fulfill their responsibilities.

 

5 Senate

5.1
The Senate has no direct responsibility for finance, but receives in advance of Council meetings reports from the University Executive Board and is able to comment on these to Council.

6 Committee Structure

6.1 Scrutiny and Finance Committee
The Scrutiny and Finance Committee is responsible to Council for the financial management of the University. The Committee will examine and recommend approval to the Council of budgets in line with agreed plans and ensure that those budgets are followed. It will also consider other matters relevant to the financial duties of the Council and make recommendations thereon. In addition to being responsible for all other aspects of financial management, the Committee must ensure that sufficient information is given to the Council for it to be satisfied that it is discharging its financial responsibilities.

6.2 University Executive Board
Chaired by the Vice Chancellor, the University Executive Board considers strategic, operational and policy issues and reports to the Scrutiny and Finance Committee and Council.

6.3 Audit Committee
The Audit Committee is independent of Scrutiny and Finance Committee and the University Executive Board and reports directly to the Council. It is responsible for maintaining an overview of the internal and external audit functions, the internal control system, the risk management strategy and the arrangements for ensuring economy, efficiency and effectiveness. It has the right of access to obtain all the information it considers necessary and to consult directly with the internal and external auditors, and may require information, either written or oral from any University member or officer. The audit requirements of the University are set out in the OfS Audit Code of Practice.

6.4 Remuneration Committee
The Remuneration Committee is responsible for the determination of pay and conditions for the University’s senior executive management, the Professoriate and equivalent professional and managerial staff. It has the power to make recommendations to Council on their remuneration, including pay and other benefits, as well as contractual arrangements.

6.5 Investments Committee
The Investment and Development Committee is responsible for the management of the investments of the University and its Trusts, including property held for investment purposes. It reports to Council.

Other Committees
All other Committees which have been allocated a budget for any purpose are responsible ultimately to the Scrutiny and Finance Committee for all income and expenditure within those budgets.

 

7 University Members and Officers with Financial Responsibility


7.1 Vice-Chancellor
The Vice-Chancellor is the chief academic and administrative officer of the University and is answerable to the University Council for the financial administration of the University’s affairs. The Vice-Chancellor is also accountable, as the “accountable officer” under the OfS Terms and Conditions of funding for ensuring compliance with the terms and conditions of funding and provided OfS with clear assurances to this effect.
In their capacity as the accountable officer, the Vice-Chancellor must advise the Council if, at any time, any action or policy under consideration by them appears to the Vice-Chancellor to be incompatible with the Terms and Conditions of funding. If the Council decides nevertheless to proceed, the Vice-Chancellor must immediately inform the Chief Executive of the OfS in writing. As the accountable officer the Vice-Chancellor may be required to justify any of the University’s financial matters to the Public Accounts Committee at the House of Commons.
In the absence of the Vice-Chancellor from the University for more than one working days, the Vice-Chancellor’s delegated powers are assumed in full by the Deputy Vice-Chancellor (or other nominated person acting as the Responsible Officer) until the Vice-Chancellor’s return.

7.2 Director of Finance
The Director of Finance has responsibility for the development of University strategy, medium term
financial and business planning, and responsibility for the University’s financial and investment
strategies.
The Director of Finance also has responsibility for:
• preparing annual capital and revenue budgets and financial plans
• preparing accounts and management information for the monitoring and control of expenditure against budgets and all financial operations
• preparing the University’s annual accounts and other financial statements and accounts which the University is required to submit to other authorities
• ensuring the University has satisfactory systems of financial control and administration
• providing professional advice on all matters relating to financial policies and procedures
• day-to-day liaison with internal and external auditors, bankers and other financial advisers
• Provision of financial advice to the Vice Chancellor
In the absence of the Director of Finance from the University, the posts delegated powers are assumed in full by the Deputy Director of Finance.

7.3 Director of Internal Audit Services
The Director of Internal Audit Services is responsible for providing the Council, the Vice-Chancellor and other senior managers with reasonable assurance on the adequacy and effectiveness of risk management, control and governance arrangements. The Head of Internal Audit Services has direct access to the Chair of the Audit Committee, the Vice-Chancellor and senior officers where required.
The Director of Internal Audit Services reports to the Secretary to the Council on a day-to-day basis.

7.4 Director of Estates
The Director of Estates is responsible for the Estates functions within the University, which will include
accountability and control of staff, the security, custody and control of all University buildings and other resources, such as materials, cash and stores relating to this function. The Director of Estates has the right of access to any part of the University.

7.5 Budget Holders
Heads of School, Heads of Directorate, and other Budget Holders are responsible to the Vice-Chancellor, through the University Executive Board, for financial control and management in their areas of responsibility. They are advised by the Director of Finance in executing their financial duties, and must ensure the proper use of funds in accordance with these financial regulations and any procedural notes issued to Budget Holders.
Heads of School and Directorate are responsible for establishing and maintaining clear lines of responsibility for all financial matters within their School or Directorate and for ensuring that these regulations are publicised and observed within their School or Directorate. Where resources are devolved to Budget Holders, they are accountable to their Head of School or Directorate for their own budget.

7.6 All members of Staff
All members of staff should be aware of and have a general responsibility for the security of the University’s property, for avoiding loss and for due economy in the use of resources.
They should ensure that they are aware of the University’s financial authority limits and the values of purchases for which quotations and tenders are required.
They shall make available any relevant records or information to the Director of Finance or his or her authorised representative in connection with the implementation of the University’s financial policies, these financial regulations and the system of financial control.
They shall provide the Director of Finance with such financial and other information as he or she may deem necessary, from time to time, to carry out the requirements of the Council.

 

8 Risk Management


8.1
The University acknowledges the risks inherent in its business, and is committed to managing those risks that pose a significant threat to the achievement of its business objectives and financial health.

8.2
The Council, through the Audit Committee, has overall responsibility for ensuring there is a risk management strategy and a common approach to the management of risk throughout the University through the development, implementation and embedment within the organisation of a formal, structured risk management policy. The Council requires an annual review of the implementation of risk management arrangements.

8.3
The University, through the Risk Management Group, a sub-committee of the University Executive Board, has developed a corporate risk register to identify key corporate risks. Responsibility for monitoring each risk has been assigned to senior officers of the University. A member of the University Executive Board has day-to-day responsibility for risk management within the University.

8.4
Schools and Directorates are also required to maintain risk management registers for their own activities and are required to report on their risk management arrangements through the annual planning process which is in turn reported to the Risk Management Group.

9 Code of Conduct


9.1
The institution is committed to the highest standards of openness, integrity and accountability. It seeks to conduct its affairs in a responsible manner, having regard to the principles established by the Committee on Standards in Public Life, which members of staff at all levels are expected to observe. These principles cover:
• integrity and accountability
• selflessness, objectivity and honesty
• openness and leadership

9.2
Additionally, members of the Council, senior members of staff or those involved in procurement are required to annually disclose interests in the University’s register of interests maintained by the Secretary to the Council. They will also be responsible for ensuring that entries in the register relating to them are kept up to date regularly and promptly.

9.3
In particular, no person shall be a signatory to a University contract where he or she also has an interest in the activities of any other party to the contract, either directly or indirectly.

9.4 Bribery Receiving gifts or hospitality
It is an offence under the Bribery Act 2010 for members of staff to request, accept or agreeing to accept a financial or other advantage from another individual/organisation in exchange for improperly performing a relevant function or activity. The guiding principles to be followed by all members of staff must be:
• the conduct of individuals should not create the suspicion of any conflict between their official duty and their private interest
• the action of individuals acting in an official capacity should not give the impression (to any member of the public, to any organisation with whom they deal or to their colleagues) that they have been (or may have been) influenced by a benefit to show favour or disfavour to any person or organisation.
Thus, members of staff should not accept any gifts, rewards or hospitality (or have them given to members of their families) from any organisation or individual w