DEFINITIONS

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DEFINITIONS Powered By Docstoc
					                ANNEX 5
         Finance Directorate Staff Handbook
                     August 11




          Financial Regulations



          (last amended: March 2004)




These regulations are effective from 1 August 2000
1.     INTRODUCTION....................................................................................................................................... 1
     1.1    DEFINITIONS ....................................................................................................................................... 1
     1.2    PURPOSE OF FINANCIAL REGULATIONS ........................................................................................ 2
     1.3    APPROVAL OF FINANCIAL REGULATIONS ...................................................................................... 2
     1.4    EXPECTED STANDARDS OF CONDUCT AND PROBITY ................................................................. 2
     1.5    FRAUD AND IRREGULARITY ............................................................................................................. 3
     1.6    WHISTLE-BLOWING............................................................................................................................ 3
     1.7    SCOPE ................................................................................................................................................. 3
     1.8    KEY CONTACTS .................................................................................................................................. 4
2.     CONTROL FRAMEWORK ....................................................................................................................... 5
     2.1    BOARD OF GOVERNORS ................................................................................................................... 5
     2.2    AUDIT COMMITTEE............................................................................................................................. 6
     2.3    REMUNERATION COMMITTEE .......................................................................................................... 6
     2.4    FINANCE & RESOURCES COMMITTEE............................................................................................. 6
     2.5    VICE CHANCELLOR ............................................................................................................................ 7
     2.6    DEPUTY VICE CHANCELLOR, BUSINESS & RESOURCES ............................................................. 7
     2.7    DIRECTOR OF FINANCE & LEGAL SERVICES .................................................................................. 7
     2.8    ALL MEMBERS OF STAFF .................................................................................................................. 8
     2.9    EXTERNAL AUDIT ............................................................................................................................... 8
     2.10     INTERNAL AUDIT ............................................................................................................................ 8
3.     BUDGETS AND BUDGETARY CONTROL ........................................................................................... 10
     3.1    OBJECTIVES ..................................................................................................................................... 10
     3.2    APPROVAL ........................................................................................................................................ 10
     3.3    BUDGET AND CONTROL PROCESS ............................................................................................... 10
     3.4    DELEGATION..................................................................................................................................... 10
     3.5    RIGHTS AND RESPONSIBILITIES OF BUDGET MANAGERS ........................................................ 10
     3.6    AMENDMENTS TO BUDGET ............................................................................................................ 11
     3.7    SPECIAL ARRANGEMENTS FOR DELEGATED CAPITAL BUDGETS ............................................ 11
4.     PURCHASING AND NON-PAY EXPENDITURE ................................................................................... 13
     4.1    OBJECTIVES ..................................................................................................................................... 13
     4.2    PROCESS .......................................................................................................................................... 13
     4.3    MINIMUM PRICE COMPETITION REQUIREMENTS ........................................................................ 13
     4.4    CONFIRMING SATISFACTORY RECEIPT OF GOODS AND SERVICES ........................................ 16
     4.5    MAKING AND ACCOUNTING FOR PAYMENTS ............................................................................... 16
     4.6    UNIVERSITY PURCHASING CARDS ................................................................................................ 16
5.     EMPLOYMENT AND PAYMENTS TO STAFF ...................................................................................... 17
     5.1    OBJECTIVE ........................................................................................................................................ 17
     5.2    CONTRACTS OF EMPLOYMENT ..................................................................................................... 17
     5.3    EXTERNAL WORK ............................................................................................................................. 17
     5.4    PAYROLL ........................................................................................................................................... 17
     5.5    EXPENSES ........................................................................................................................................ 18
6.     INCOME, RESEARCH, CONSULTANCY AND INCOME-GENERATING ACTIVITIES ....................... 19
     6.1    OBJECTIVES ..................................................................................................................................... 19
     6.2    PRICING POLICY ............................................................................................................................... 19
     6.3    SETTING FEES AND CHARGES ....................................................................................................... 19
     6.4    TUITION FEES ................................................................................................................................... 19
     6.5    RESEARCH AND CONSULTANCY (EXTERNAL WORK) ................................................................. 19
     6.6    ISSUING INVOICES ........................................................................................................................... 19
     6.7    CREDIT CONTROL ............................................................................................................................ 20
     6.8    WRITING OFF DEBTS ....................................................................................................................... 20
7.      BANKING ARRANGEMENTS AND CASH HANDLING ....................................................................... 21
     7.1    OBJECTIVES ..................................................................................................................................... 21
     7.2    ARRANGEMENTS ............................................................................................................................. 21
     7.3    BANK ACCOUNTS ............................................................................................................................. 21
     7.4    CHEQUE SIGNATORIES AND AUTHORISATION LIMITS ............................................................... 21
     7.5    COLLECTION AND BANKING OF CASH OR CHEQUES.................................................................. 22
     7.6    LOSSES OR SHORTFALLS ............................................................................................................... 22
     7.7    PETTY CASH ..................................................................................................................................... 22
     7.8    STAFF ADVANCE .............................................................................................................................. 22
     7.9    UNIVERSITY CREDIT CARDS .......................................................................................................... 23
8.      HOSPITALITY AND GIFTS .................................................................................................................... 24
     8.1    OBJECTIVES ..................................................................................................................................... 24
     8.2    RECEIPT OF HOSPITALITY AND GIFTS .......................................................................................... 24
     8.3    EXPENDITURE ON HOSPITALITY AND GIFTS ................................................................................ 24
9.      ASSETS AND SECURITY ...................................................................................................................... 25
     9.1    OBJECTIVE ........................................................................................................................................ 25
     9.2    ACQUISITION OF ASSETS ............................................................................................................... 25
     9.3    SAFEGUARDING OF ASSETS .......................................................................................................... 25
     9.4    STOCKS AND STORES ..................................................................................................................... 25
     9.5    DISPOSAL OF ASSETS, STOCKS AND STORES ............................................................................ 25
     9.6    LOSS OR DESTRUCTION OF ASSETS, STOCKS AND STORES ................................................... 25
     9.7    REMOVAL AND USE OF UNIVERSITY ASSETS, STOCKS AND STORES ..................................... 25
     9.8    TREASURY MANAGEMENT ............................................................................................................. 25
10.     RISK MANAGEMENT ............................................................................................................................ 26

11.     OTHER REGULATIONS ........................................................................................................................ 27
     11.1  UNIVERSITY COMPANIES AND OTHER COMPANIES ............................................................... 27
     11.2  TAXATION ..................................................................................................................................... 27
     11.3  BEQUESTS, DONATIONS, SPECIAL FUNDS, ETC. .................................................................... 28
     11.4  DATA PROCESSING ..................................................................................................................... 28
     11.5  ACCOUNTING RECORDS ............................................................................................................ 28
     11.6  USE OF THE SEAL OF CORPORATION....................................................................................... 29
     ANNEX A: SEVEN PRINCIPLES OF PUBLIC LIFE.................................................................................... 30
     ANNEX B: EXTRACT FROM THE ARTICLES OF GOVERNMENT ................................................................ 31
     ANNEX C: EXTERNAL WORK ................................................................................................................... 32
1. INTRODUCTION
1.1 DEFINITIONS
1.1.1   In these Regulations the following terms have the meanings given below:-

The „Board‟ means the Board of Governors and shall include, unless specifically provided otherwise, those
committees to which financial arrangements may, in whole or part, have been delegated;

The „SMT‟ means the Vice-Chancellor and the staff together forming the Senior Management Team as
appointed by the Board of Governors. [On 1 August 2000 this comprised the Vice-Chancellor and the
Deputy Vice-Chancellors for Academic Affairs (AA) and Business and Resources (B&R).]

„Income and Expenditure‟ means any income due to or expenditure incurred by the University for whatever
purpose (including, inter alia, capital);

„Vire or Virement‟ means the transferring of a budget given for a specific purpose for another purpose;

„Central or Demand-Led Budget‟ means a part of the University‟s income and/or expenditure that has a
nominated Budget holder but where the surplus or deficit is not carried forward from one year to the next. In
addition, expenditure can only be incurred for the express purposes agreed by SMT and the budget cannot
be vired for other purposes except as authorised by SMT;

„Budget Centre‟ means an area of the University‟s income and / or expenditure for which responsibility has
been delegated to a Budget Manager, where any surplus or deficit made in one financial year is carried
forward to be added to or deducted from the following year‟s net budget allocation to the budget centre;

„Budget Manager‟ means a member of staff to whom the SMT has delegated control of a budget and
delegated representative(s) means the named member(s) of staff to whom the Budget Manager has
delegated financial authority with the prior approval of the Director of Finance & Legal Services;

„Net Delegated Budget‟ (“NDB”) means the net amount of resource which has been delegated by SMT for a
budget centre, so enabling a particular group of objectives to be achieved. Such amounts can be
supplemented by the budget centre generating additional income from which an agreed proportion or
amount will be credited to the budget centre. To this extent the Budget Manager is able to vire sums to other
purposes consistent with its strategic or operating statement agreed with SMT;

„Planned Net Expenditure‟ means the net expenditure which it is planned that a budget centre will incur in a
financial year;

 „Budget Centre Surplus or Deficit‟ means the difference between a budget or NDB allocated for a
particular year and the actual net expenditure incurred for that year;

„Financial Limits‟: all amounts specified in these regulations are inclusive of Value Added Tax,

„Authorisation‟ means the prior agreement given in writing (or in any form approved by the Director of
Finance & Legal Services) by a person or body empowered to do so under these regulations, after satisfying
themselves that the action is consistent with these regulations;

„Certification‟ means confirmation given in writing by a person or body empowered to do so under these
regulations, that an action has taken place consistent with these regulations and that a payment or other
action is now required.

„Head of Internal Audit Services‟: an employee of the University or the firm of accountants appointed to
provide internal audit services.




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1.2 PURPOSE OF FINANCIAL REGULATIONS
1.2.1      The University has developed these financial regulations so that it can demonstrate that it:
      a)       meets the high standard of accountability expected when dealing with public funds, which in one
               form or another makes up over half of our income;
      b)       operates with due regard for economy, efficiency and effectiveness;
      c)       safeguards its assets from loss due to fraud, theft or extravagance;
      d)       invoices and collects funds due to it, and accounts for payments to employees and suppliers
               promptly and accurately; and
      e)       effectively manages the University‟s cashflow, investments and borrowings.

1.2.2      These regulations create a framework of financial controls within which the staff of the University
           must operate. Properly complied with, these regulations not only protect the University but also
           individual staff. Failure to comply with these regulations may lead to the loss of assets, significant
           delays in payments to employees and suppliers, and additional work for colleagues.
1.2.3      All staff should read these financial regulations and comply with them. If there are any points which
           are unclear please contact the Director of Finance & Legal Services or other contacts within the
           finance department. If in doubt please seek advice. Failure to comply with financial regulations is a
           serious matter and may lead to action under the University‟s disciplinary procedures.
1.2.4      The objectives for each area of the University‟s activity, and the key controls that must be complied
           with to ensure that the objectives are achieved, are highlighted in these regulations. It is the
           responsibility of the Budget Manager to ensure that detailed written procedures are produced for
           each separate financial system within their respective areas of responsibility.
1.2.5      The financial regulations are supplemented by a range of other more detailed documents on specific
           subjects including:
                 The Financial Administration handbook issued and updated by the finance department;
                 Any detailed procedures developed by the school or department under paragraph 1.2.4 to
                  supplement or amplify University procedures;
                 The University‟s Travel and Subsistence Policy, issued and updated by the finance department;
                 The Purchasing Protocol, issued and updated by the finance department;
                 The Insurance Handbook, issued and updated by the finance department;
                 The Contracts Manual, issued and updated by the Research Services and Business
                  Development Directorate;
                 The Procedures on Public Interest Disclosure issued and updated by the Academic Registry
                  and Student Services Directorate;
                 The Guidance on Gifts and Hospitality issued and updated by the Human Resources
                  Directorate;
                 Instructions issued from time to time by the Director of Finance & Legal Services.

1.3     APPROVAL OF FINANCIAL REGULATIONS
1.3.1      The University‟s financial regulations, and any amendments, are subject to approval by the Board of
           Governors on the recommendation of the Finance and Resources Committee and the Vice
           Chancellor after consultation with the Audit Committee, the Director of Finance & Legal Services and
           the Head of Internal Audit Services.

1.4 EXPECTED STANDARDS OF CONDUCT AND PROBITY
1.4.1      All systems and controls depend ultimately on the integrity and competence of the people who
           operate them; the University must be able to rely on its staff to act correctly and conscientiously.



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1.4.2   Consequently, it is expected that each person who has entered employment with the University
        accepts responsibility for, and wishes to contribute to the maintenance of the highest possible
        standards of honesty and integrity in, the conduct of the University‟s affairs. Failure by any individual
        to live up to such standards will be regarded as a breach of trust and will be likely to lead to serious
        consequences for the individual concerned, including disciplinary action where appropriate. Any
        member of staff who is in doubt about how to act in any situation should seek advice.
1.4.3   No member of the University‟s staff has authority to legally or financially commit the University
        unless specifically authorised to do so by the relevant Budget Manager or otherwise under these
        regulations. Staff should be aware that financial commitments may arise from any promise or
        commitment to take action and no such commitment should be given at any time without appropriate
        financial authority. The University may refuse to accept liability where these regulations have not
        been followed. If in bypassing these regulations (including the authorisation and price competition
        requirements) an order is placed orally or in writing, payment may be the responsibility of the
        individual who takes the action.
1.4.4   The University accepts the reports of the Committee of Standards in Public Life (“the Nolan
        Committee”) and in particular the seven key principles of public life: Selflessness; Integrity;
        Objectivity; Accountability; Openness; Honesty and Leadership – further information is set out in
        Annex A. In all their activities on behalf of the University, staff should bear these principles in mind
        when making decisions with financial consequences. As a good discipline staff should consider how
        a third party might interpret their action, and avoid situations where they appear to have a conflict of
        interest or may appear to have been influenced in their decisions by (say) the acceptance of
        hospitality.

1.5 FRAUD AND IRREGULARITY
1.5.1   All members of staff are expected to remain alert to the possibility that the University may be a victim
        of fraud, irregularity or other unacceptable activity. If a member of staff suspects such behaviour
        they should bring it to the attention of their head of school or directorate so that they may investigate
        it more fully.
1.5.2   Following initial consideration of any such allegations, the Head of School or Directorate is required
        to bring the issue to the attention of the Director of Finance & Legal Services without delay, and to
        agree an approach to investigating the allegation. While the allegation is under consideration, care
        must be taken not to take actions that will render any evidence inadmissible should criminal action
        be subsequently deemed appropriate. The Head of Internal Audit Services should be informed.
1.5.3   The Director of Finance & Legal Services should make recommendations to SMT on what further
        legal action should be taken.
1.5.4   If an individual is not satisfied that their complaint has resulted in the appropriate action they should
        consider following the procedures set out within the University‟s procedure on Public Interest
        Disclosures (Whistle-Blowing).

1.6 WHISTLE-BLOWING
1.6.1   The University is developing formal procedures to ensure that it complies with Public Interest
        Disclosure Act 1998. This enables members of staff who have concerns that action or inaction
        within the University raises issues of public interest can raise these and be confident that the issues
        will be thoroughly investigated and all necessary action taken.
1.6.2   Examples of public interest matters include financial malpractice or impropriety or fraud; failure to
        comply with a legal obligation or with the Articles of Government or Regulations of the University;
        dangers to health and safety or the environment; criminal activity; academic or professional
        malpractice; improper conduct or unethical behaviour; and attempts to conceal any of the above.
1.6.3   Further details of the policy are available from the Clerk to the Board of Governors.

1.7 SCOPE
1.7.1   In the absence of a Board resolution to the contrary, these regulations apply to all of the activities of
        the University and its subsidiaries. It is acknowledged that many grants and projects are given to the
        University based upon the activities of particular individuals. This does not mean, however, that
        different methods and standards of administration and accountability can apply to these funds.


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1.7.2   These regulations do not apply to Oxford Brookes University Students‟ Union (“the Union”) as it is a
        separately constituted organisation: consequently, the financial management and control rests with
        the Union. However, as a condition of the annual grant that the University provides to the Union, the
        Board of Governors expects the principles contained in the Regulations, wherever relevant, to be
        adopted by the Union.

1.8 KEY CONTACTS
1.8.1   Members of staff with direct responsibility for the University‟s activities as noted in the Financial
        Regulations and operating as representatives of the Deputy Vice-Chancellor, Business & Resources
        are as follows:-
Contact                                  Responsibility
Director of Finance & Legal Services     Management of the University‟s financial and legal affairs
Deputy Director (Finance)                Taxation, financial & management accounts
Head of Decision Support                 Budgetary control, costing activity, management information
Insurance & Treasury Officer             Insurances / banking arrangements
Management Accountants                   Budgeting, monitoring & costing proposals. Key links with schools and
                                         departments
Purchasing Manager                       Purchasing, tendering arrangements for supply
Payments Team Leader                     Payments to suppliers and for expenses and administration of corporate
                                         credit and purchasing cards
Income Manager                           Income, debt control, student fees, petty cash and cash office services
Payroll Manager                          Payment of salaries and wages
Head of Contracts and Commercial         Contract negotiations. Terms and conditions of sale. Intellectual property
Services                                 rights, patents, etc.
Director of University Relations         Fundraising. Ensuring maximum benefit from donations
Deputy Director (Legal Services)         All contract and legal matters excepting things expressly delegated




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2. CONTROL FRAMEWORK
2.0.1    It is important for all staff to appreciate that all authority to incur expenditure for University purposes
         stem exclusively from the Board. For any expenditure it must be possible to trace the authority back
         through the University‟s framework of controls to a decision of the Board. This framework includes
         the Vice-Chancellor – who carries personal responsibility for the University‟s conduct of financial
         affairs – the role of SMT and Budget Managers as described in these regulations, that have also
         been approved by the Board. The management control systems of the University are scrutinised
         through the work of the Board‟s Audit Committee and the Committee reports back to the Board
         annually on the adequacy of its arrangements.
2.0.2    Because of the significant amount of public funds which the University receives, the Higher
         Education Funding Council of England (HEFCE) carries out certain regulatory and policing roles in
         relation to the University. These requirements are set out in various circulars, but consist principally
         of the Financial Memorandum, its annexes and the Audit Code of Practice. The most up-to-date
         versions of these documents can be viewed on-line at www.hefce.ac.uk.


2.1     BOARD OF GOVERNORS
2.1.1    The University was incorporated on 21 November 1988 as a Higher Education Corporation under the
         Education Reform Act 1988.
2.1.2    Under the provisions of Schedule 12, Paragraph 64(3) of the Act, the University is established as an
         exempt charity and does not therefore have to register with the Charity Commissioners.
2.1.3    The Board of Governors governs the University under its Articles of Government. The section of the
         Articles of Government dealing specifically with financial matters is reproduced as Annex B.
2.1.4    The Financial Memorandum governing the relationship between the HEFCE and the Board of
         Governors of the University sets out the financial responsibilities of the Board of Governors. The
         Board of Governors is, inter alia, responsible for:-
         a)    ensuring that funds from the HEFCE are used only in accordance with the Act, and any other
               conditions which the Council may from time to time prescribe; and

         b)    designating, subject to acceptance by the HEFCE, a Principal Officer of the University: the
               holder of which office will need to satisfy the Governing Body that all such conditions are
               complied with.

2.1.5    The Board of Governors has determined that the Vice-Chancellor is the University‟s designated
         Principal Officer.
2.1.6    The systems of accounting, the accounts and the audit of those accounts must comply with all
         statutory requirements, including in particular Schedule 7 of the Education Reform Act 1988 and any
         Accounts and Audit Regulations in force from time to time, including accounts directions issued by
         HEFCE.
2.1.7    The Board shall establish an Audit Committee, a Finance and Resources Committee, and a
         Remuneration Committee, with such terms of reference as determined from time to time by the
         Board.




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2.2     AUDIT COMMITTEE
2.2.1    The Audit Committee shall meet at least three times a year and taking into account the audit code of
         practice issued by HEFCE and other advice and guidance issued periodically, shall operate within
         the following terms of reference, which may be amended by the Board:
         a) to advise the Board on the effectiveness of the University‟s internal control systems including the
            physical security of the computer systems, controls over access to the systems and controls
            contained in the software to prevent the improper use of funds and ensure the quality of
            information provided by the system;
         b) to advise the Board on criteria for selection and appointment of an internal audit service (and
            head of internal audit, if applicable);
         c) to consider and advise the Board on a long-term strategy and an annual plan for the internal
            audit service;
         d) to consider and advise the Board on internal audit reports;
         e) to monitor the effectiveness of the internal audit service;
         f) to advise the Board on the appointment and remuneration of external auditors and the scope of
            their work;
         g) to consider and advise the Board on external audit reports and management letters;
         h) to monitor annually, or more frequently if necessary, the implementation of approved
            recommendations relating both to internal audit reports and external audit reports and
            management letters;
         i) to review the annual accounts and accounting policies for submission to the HEFCE and to
            present those accounts, with any commentary, to the Board for approval;
         j) to consider whether in its financial dealings the University complies with all statutory
            requirements conditions of grants and contracts, and the University‟s Financial Regulations, and
            to advise the Board of any failure to comply;
         k) to be responsible for advising the Board on Value-for-Money issues;
         l) to monitor the effectiveness of the external audit service; and
         m) to establish objectives for its activities on an annual basis and to review its own effectiveness.

2.3 REMUNERATION COMMITTEE
2.3.1 The Remuneration Committee shall determine the remuneration, terms and conditions of service,
      appraisal arrangements and any severance provision for senior staff. In addition, it shall review the
      remuneration of senior staff at least annually, having regard to all appropriate factors, including:

         a)    the views of the senior staff and, if requested by those staff, their representatives;
         b)    the general level of pay rises in the University sector;
         c)    comparability with staff in other Universities;
         d)    performance in post; and
         e)    the need to recruit and retain well-qualified staff.

2.4 FINANCE & RESOURCES COMMITTEE
2.4.1 The Finance & Resources Committee shall, subject to such overall guidance on strategy as may be
      given from time to time by the Board:

         a)    advise the Vice-Chancellor on a recommendation to the Board for the coming year‟s recurrent
               and capital budgets, and on the cash flow forecast and draft balance sheet arising therefrom;
         b)    consider for approval by the Board a rolling five-year strategic plan, including financial plans
               (both revenue and capital) projected cash flow and balance sheets, taking account of the
               requirements of the Funding Councils;
         c)    advise the Vice Chancellor on the detail of the five-year financial projections required by the
               Funding Council;
         d)    recommend an estates strategy to the Board;
         e)    review and recommend to the Board borrowing or other financial vehicles necessary to fund
               the strategy, and the release of funds for specific projects;
         f)    approve the acquisition or disposal of lands and buildings;



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         g)    To advise the Board on their consideration of budget monitoring statements covering recurrent
               and capital expenditure and cash flow;
         h)    To keep under review and advise the Board on changes to the financial regulations of the
               University;
         i)    To keep under review and approve the University‟s policy for investment of surplus funds, of
               endowment assets and its subsidiary, joint venture and other companies;
         j)    To review the performance of the University against such indicators and benchmarks as may
               be appropriate;
         k)    To give advice to the Board as may be required from time to time on the framework for
               determining tuition and other fees to be charged by the University; and
         l)    To undertake such other responsibilities as may be delegated by the Board and to provide
               such other advice on financial matters as may be required from time to time by the Board or
               the Vice-Chancellor.

2.5     VICE CHANCELLOR
2.5.1    The Vice-Chancellor shall:-
         a)    take personal responsibility, which may not be delegated, for ensuring the proper and effective
               operation of the controls referred to in the Financial Memorandum and for giving effect to the
               Board‟s policies for securing the efficient, economical and effective management of all the
               University‟s resources and expenditure;
         b)    be responsible with the Board of Governors for ensuring that any payments from the Funding
               Council are used only for the purposes for which they are given, and in accordance with the
               provisions of the Financial Memorandum or such other terms as may be attached;
         c)    take responsibility for advising the Board of Governors if at any time any action or policy under
               consideration by the Board is incompatible with terms of the Financial Memorandum. The
               Vice-Chancellor of the University may be required to appear before the Public Accounts
               Committee alongside the Accounting Officer of the Funding Council, on matters relating to the
               grant to the University; and
         d)    be responsible for preparing annual estimates of income and expenditure, for consideration by
               the Board of Governors, and the management of the budget resources, within the estimates
               approved by the Board of Governors. Under the Articles of Government, the Vice-Chancellor
               has delegated this responsibility to the Deputy Vice-Chancellor, Business & Resources.


2.6     DEPUTY VICE CHANCELLOR, BUSINESS & RESOURCES
2.6.1    The Deputy Vice-Chancellor, Business & Resources shall:-
         a)    be the officer responsible for the administration of the financial affairs of the University. He
               shall: (i) provide financial advice to the Board of Governors and its officers; (ii) supervise the
               implementation of the Board of Governors‟ financial policies; (iii) design, implement and
               supervise financial control systems; and (iv) prepare and maintain such accounts, estimates,
               records and reports as the Board of Governors may require for the purpose of carrying out its
               duties;
         b)    be responsible for the purchasing policies of the University and ensuring that those policies
               are made known to all staff;
         c)    require, of any member of staff, that the form in which financial records are kept shall be to
               his/her satisfaction;
         d)    be responsible for the maintenance of the University‟s financial systems of control, including
               computing systems; and
         e)    ensure that existing and new members of staff are informed of their responsibilities under
               these Financial Regulations.
         .
2.7 DIRECTOR OF FINANCE & LEGAL SERVICES
2.7.1 The Director of Finance & Legal services is responsible to the Deputy Vice-Chancellor, Business &
      Resources for:
         a)    the provision and effective management of financial and legal services to the University;


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         b)    the creation and maintenance of adequate systems of internal control within the University;
         c)    the production of the University‟s management and financial accounts;
         d)    liaison with the external auditors; and
         e)    ensuring the provision of effective internal audit services to a plan agreed by the Audit
               Committee.


2.8     ALL MEMBERS OF STAFF
2.8.1    All members of staff shall:-
         a)    have a general responsibility for (i) the security of the University‟s property, including
               confidential information and intellectual property, (ii) avoiding loss and (iii) due economy in the
               use of resources. They must comply with the systems of financial control laid down by the
               Director of Finance & Legal Services and with any directions in relation to the control of
               budgets and the maintenance of records;
         b)    make available any relevant records or information to the Director of Finance & Legal
               Services, or authorised representative, in connection with the carrying out of duties relating to
               the implementation of the University‟s financial policies and systems of financial control;
         c)    provide the Director of Finance & Legal Services with such financial and other information as
               may be deemed necessary, from time to time, to carry out the requirements of the Board;
         d)    immediately notify their Budget Manager whenever any matter arises which involves, or is
               thought to involve, irregularities concerning, inter alia, cash, stores, or property of the
               University. “Property” here includes intellectual property and any other confidential information
               which is owned by, or is the responsibility of, the University. Budget Managers are
               responsible for informing the Director of Finance & Legal Services immediately of any such
               irregularities, who shall then take such steps as are considered necessary by way of
               investigation and report to the Vice-Chancellor and/or Audit Committee;
         e)    notify the Vice-Chancellor of any direct or indirect financial interest they may have in any
               organisation with which the University is dealing. Where the member of staff is dealing with
               the other organisation on behalf of the University, the Vice-Chancellor may require that such
               activity be undertaken by another member of staff and in any event shall only continue on the
               specific written approval of the Vice-Chancellor; and
         f)    obtain the approval of the Director of Finance & Legal Services before initiating computer or
               manual systems integral to the main financial system of the University where these systems
               are to be used for the keeping of accounting or other records.

2.9 EXTERNAL AUDIT
2.9.1 The appointment of external auditors will take place annually and is the responsibility of the Board.
      The Board will be advised by the Audit Committee.
2.9.2    The primary role of external audit is to report on the institution‟s financial statements and to carry out
         such examinations of the statements and underlying records and control systems as are necessary
         to reach their opinion and to report on the appropriate use of funds. Their duties will be in
         accordance with advice set out in HEFCE‟s Audit Code of Practice and the Auditing Practices
         Board‟s auditing standards.
2.9.3    External auditors shall have authority to:
         a) access institution premises at reasonable times;
         b) access all assets, records, documents, correspondence relating to any financial and other
             transactions of the institution;
         c) require and receive such explanations as are necessary concerning any matter under
             examination;
         d) require any employee of the institution to account for cash, stores or any other institution
             property under his/her control; and
         e) access records belonging to third parties, such as contractors, when required.

2.10 INTERNAL AUDIT
2.10.1 The University shall maintain a current internal audit service that operates to the standards set out in
       HEFCE‟s code of practice. It shall be responsible for conducting an independent appraisal of all of


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         the University‟s activities. It is responsible for reporting annually to the Board, through the Audit
         Committee, on the adequacy and operation of the University‟s systems of internal control. In
         addition, it provides a service to managers by reporting to them on the effectiveness of the controls
         for which they are responsible.
2.10.2 The Board, on recommendation of the Audit Committee, shall approve detailed terms of reference
       for the service which shall include the following minimum requirements:

Scope
2.10.3 All of the University‟s operations, including subsidiaries, fall within the remit of the internal audit
       service. The internal audit service will consider the adequacy of controls necessary to secure
       propriety, economy, efficiency and effectiveness in all area.
2.10.4 The internal audit service may also conduct any special reviews requested by the Board, the Audit
       Committee or designated office holder, provided such reviews do not compromise its objectivity,
       independence or achievement of the approved audit plan.

Responsibilities
2.10.5 The Head of Internal Audit Services (“the Head”) is required to give an annual opinion to the
       governing body, through the Audit Committee, on the adequacy and effectiveness of the whole
       internal control system within the University, and the extent to which the Board can rely on it. The
       Head should also comment on other activities for which the Board is responsible, and to which the
       internal audit service has access. The Head should give an opinion on whether the control
       arrangements, including those for economy, efficiency and effectiveness, are adequate and properly
       applied.


Standards and approach

2.10.6 The internal audit service‟s work will be performed with due professional care, in accordance with
       appropriate professional auditing practice. It will have regard for the Government Internal Audit
       Manual, and will comply with the HEFCE Audit Code of Practice.

Independence
2.10.7 The internal audit service has no executive role, nor does it have any responsibility for the
       development, implementation or operation of systems. However, it may provide advice on
       implementation, control and related matters, subject to resource constraints and the need to
       maintain objectivity. For day-to-day administrative purposes only, the Head shall normally report to
       the Director of Finance & Legal Services.

Access
2.10.8 The internal audit service has rights of access to all the institution‟s records, information and assets
       that it considers necessary to fulfil its responsibilities. Rights of access to other bodies funded by the
       institution should be set out in the conditions of funding. The Head has a right of direct access to the
       Chair of the Board, the Chair of the Audit Committee and the Vice-Chancellor.

Reporting
2.10.9 The Head should submit an annual report to the Board and designated officer through the Audit
       Committee, based on the institution‟s financial year. The report should give an opinion on the whole
       internal control system at the institution, and on the arrangements for securing economy, efficiency
       and effectiveness. The Head should also prepare, before the beginning of the year, a rolling 5-year
       strategy document supported by an audit needs assessment, and an annual audit plan. These
       should be submitted to the Board for approval following consultation with SMT and after
       consideration by the Audit Committee.




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3. BUDGETS AND BUDGETARY CONTROL

3.1 OBJECTIVES
3.1.1    A budget is a plan expressed in financial terms, which is underpinned with objectives that need to be
         achieved, and represents the resources that the University has made available to achieve those
         objectives.

Key Objective: To deliver the planned output within the budget allocation made available.

3.2 APPROVAL
3.2.1    Annually, prior to the commencement of a financial year, the Deputy Vice Chancellor, Business &
         Resources, shall prepare, in consultation with SMT, a budget covering all of the activities of the
         University, including capital and revenue, for consideration by the Board along with a forecast for at
         least a further two years. The Board, after making any amendments which they see fit, shall
         approve the budget for the year, in advance of the commencement of the year, after taking note of
         the forecast for subsequent years.

3.3 BUDGET AND CONTROL PROCESS
3.3.1    The steps in the University‟s budgeting and control cycle are: (i) allocation of initial resources to
         budget centres; (ii) compilation of detailed plans by Budget Managers; (iii) consideration of plans and
         need to amend budget allocations by SMT; (iv) approval of budget by Board; (v) implementation of
         plan by Budget Managers; (vi) monitoring of budgets by the finance department; and (vii) submission
         of reports to SMT and the Board; and control of budgets by Budget Managers.
3.3.2    In essence, only Budget Managers can control budgets because it is they who make spending
         decisions. However, they will be held to account by SMT and the Board for the conduct of that
         control, initially through the Finance Department.

3.4     DELEGATION
3.4.1    Where authority for incurring expenditure is delegated by the Board to a Committee of the Board,
         such authority will specify the levels of expenditure that the Committee may incur without further
         reference to the Board.
3.4.2    The SMT within a policy approved by the Board, may delegate responsibility for a budget or part of a
         budget to a Budget Manager to assist the performance of defined activities.

3.5 RIGHTS AND RESPONSIBILITIES OF BUDGET MANAGERS
3.5.1 Budget Managers’ Rights
     a) shall be informed of the budget allocations by the Deputy Vice-Chancellor, Business &
        Resources, and of subsequent amendments as may be required from time to time within the
        arrangements approved by SMT and/or the Board;
     b) may incur expenditure up to the amounts approved for the budget centre;
     c) shall receive periodic reports from the finance department on their performance against plan;
     d) may vire any net delegated budget (but not central or demand-led budgets) to other University
        purposes without limit (including from revenue to capital) insofar as the budget centre objectives
        can still be met; and
     e) carry forward into subsequent years, within overall arrangements approved by SMT, any unspent
        NDB.




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3.5.2    Budget Managers’ Responsibilities
         a)    to provide the Deputy Vice-Chancellor, Business & Resources with all financial, statistical and
               other information, including explanations as necessary, for the compilation of budgets and
               forecasts and subsequent control and monitoring;
         b)    the financial management and control within their budget centres, including compliance with
               these regulations, and in particular the provisions of paragraph 1.2.4;
         c)    the effective and economic deployment of resources within their centres and be accountable
               for the results achieved;
         d)    the production of forecasts identifying estimates of income and expenditure by category so as
               to facilitate detailed monitoring and control of income and expenditure against approved
               budgets;
         e)    not to incur expenditure which cannot be met from the amount provided in the approved
               budget, after permitted virement, but where such excess expenditure does occur ensure, in
               agreement with SMT, that the overspending is matched by an underspending in subsequent
               years;
         f)    to ensure that all delegated income and expenditure is correctly disclosed (that is, coded and
               classified between capital and revenue) within the University‟s accounting records;
         g)    not cause any brought forward balances to be spent without the prior agreement of SMT; and
         h)    to adhere to all University policies and procedures.

3.6     AMENDMENTS TO BUDGET
3.6.1    Once the budget has been approved by the Board it may only be amended by issuance of a written
         authorisation to the Budget Manager and the finance department, by:
         a)    the Deputy Vice-Chancellor, Business & Resources, or his representatives, up to the amounts
               included within specific contingencies included within the capital and revenue budgets;
         b)    the Vice-Chancellor, in consultation with the Deputy Vice-Chancellor, Business & Resources
               up to the amounts included within general contingencies included within the capital and
               revenue budgets. Individual amendments should be reported to the Board;
3.6.2    Any amendments to budgets under paragraph 3.6.1 which cause a net reduction in the University‟s
         budgeted surplus (or increase in deficit) or increase in overall capital expenditure shall be on the
         recommendation of the Vice-Chancellor, in consultation with the Deputy Vice-Chancellor, Business &
         Resources, and authorised on the written authority of the:
         a)    Vice-Chancellor and Deputy Vice-Chancellor, Business & Resources, jointly- up to £50,000;
         b)    Chair or Vice-Chair of Governors - up to £100,000;
         c)    Board of Governors - all amounts above £100,000.


3.6.3    Approval to an amendment under section 3.6 should be given under this section prior to incurring the
         expenditure. Where approval is obtained after the expenditure is incurred this must be reported to
         the appropriate committee of the Governors for retrospective authorisation.

3.7     SPECIAL ARRANGEMENTS FOR DELEGATED CAPITAL BUDGETS
3.7.1    Capital expenditure is, broadly, expenditure of a value greater than an amount defined by the
         University (for 2000-01: £5,000), on items that last longer than a year. It includes the purchase of
         land, buildings, vehicles and equipment. However, for expenditure on buildings to be capitalised it
         must „enhance‟ the asset in a financially measurable way. The Director of Finance & Legal Services
         will issue more detailed guidance from time to time.
3.7.2    As long as combined spending on revenue and capital does not exceed the NDB, Budget Managers
         can use their budget to support capital expenditure without further approval. However, they must
         ensure that capital expenditure is correctly classified in the accounts. Budget Managers should not
         enter into leases or long-term rentals of capital assets without first establishing that the
         arrangements offer value for money to the University and consulting the Purchasing Manager.
3.7.3    Budget Managers may submit proposals to the SMT through their nominated representative within
         the finance department, for items of capital expenditure where it is proposed that:
         a)   The capital cost is met directly from the surplus of the budget centre; and


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        b)   The annual depreciation is met from the recurrent funding of the budget centre. This is only
             available where the asset has a life of five years or less under the University‟s depreciation
             policy.
3.7.4   The proposals will be evaluated by the SMT in light of the effect on the budget centre‟s annual
        budget and on the cash flow position of the University.
3.7.5   All budget proposals must be submitted in accordance with the University‟s procedures and policies,
        and in a format prescribed by the Director of Finance & Legal Services.

Centrally Controlled Capital Budgets
3.7.6   As part of the budget-setting process, SMT will consider the University‟s needs and will prepare a
        schedule of schemes for approval by the Board along with recommendations on how the schemes
        shall be funded. The schedule may include a general contingency to fund minor variations in
        approved schemes.
3.7.7   SMT shall recommend schemes for approval after considering – in detail commensurate with the
        level of proposed expenditure – the following criteria:
        a)   The scheme‟s consistency with the University‟s strategy;
        b)   The financial and technical alternatives to the scheme;
        c)   The financial and technical option appraisals; and
        d)   The impact on the University‟s revenue account.
3.7.8   SMT will periodically issue guidance on the University‟s approach to the appraisal of capital
        schemes, which shall include the requirement to review the effectiveness of a capital project after a
        maximum of one year‟s normal operation.




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4. PURCHASING AND NON-PAY EXPENDITURE
4.1 OBJECTIVES
4.1.1   Once a budget has been allocated, or additional net income has been generated, the Budget
        Manager may incur expenditure without further authority up to the maximum limit of the budget.
        However, in doing so the controls set out within this section must be fully complied with, irrespective
        of the source of any additional funding. The overriding requirement is to obtain the best value for
        money (VFM).
Key Objective: That the purchase of goods or services is undertaken in such a way as to demonstrate that:
                 (i) the required authorisation for order and payment was achieved; (ii) the choice of
                 supplier was fair; (iii) the terms of supply took account of the requirement to achieve value
                 for money; (iv) the proposed expenditure was matched to uncommitted budget; and, (v)
                 the payments for supplies and services were made accurately and complied with the
                 terms of trade accepted by the University.

4.2 PROCESS
4.2.1   Making a purchase of goods or services will normally require the following steps:
        a)      Identification of the need for a supply and service. This is a critical stage for ensuring that
                VFM is achieved. Is the purchase needed? Is there another way of doing it? Is the quality
                and type of purchase the right balance of cost, quality, and quantity? Is sufficient time
                (delivery date) being allowed to get a good deal?
        b)      Identification of the preferred supplier. This requires consideration of issues in a) but it is
                also essential that at this point the minimum requirements for price competition are complied
                with.
        c)      The issue of an appropriately authorised written purchase order.
        d)      Confirmation of the satisfactory receipt of goods or completion of services by certifying
                invoices.
        e)      Making and accounting for the payment against the certified invoice.
4.2.2   In incurring expenditure the internal control principle – that a minimum of two people should be
        involved – must be observed. This is usually best achieved by ensuring that the authorised
        personnel that sign the order and authorise the invoice are different members of staff (e.g. Budget
        Manager, and delegated representative).
4.2.3   NO individual may purchase goods or services for their own personal use through the
        University, other than through recognised shop outlets.


4.3 MINIMUM PRICE COMPETITION REQUIREMENTS
AUTHORISING AND ORDERING GOODS AND SERVICES
STAGES I TO III
4.3.1   The University‟s Purchasing Manager shall issue a purchasing protocol to all budget centres. This
        document shall in addition be available on the University‟s intranet.
4.3.2   Written orders must be issued to the contracted party for all supplies and services unless one of the
        following applies:
        a)    It is a regular recurring payment under a form of contract or subscription (e.g. utility supplies
              (not works), property rents, insurance, subscriptions to higher education associations etc.).
        b)    Payment is made using a University purchasing card.
        c)    Payment is made using a University credit card strictly in accordance with the University‟s
              terms and conditions of issue.
        d)    It is a petty cash purchase as defined in section 7.7.
        e)    The Purchasing Manager has given a written exception to the specific transaction.
4.3.3   Written orders should be issued before obtaining the supply or service, but in exceptional cases it
        may be necessary to place an order verbally before the preparation of an official order. In such


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        cases an order marked „confirmation only‟ should be issued within two working days of the oral
        order.
4.3.4   There are increasing incidences of goods only being available through the Internet (or being
        available at substantially reduced prices in this way). In some cases the University may have an
        established credit account with the supplier; in other cases payment by credit cards is required. The
        University‟s policy is that each School and Directorate may nominate one individual holding a
        University credit card to make purchases via the Internet under the following conditions (which also
        apply to credit account purchases):
        a)    The Director of Finance & Legal Services must be informed in writing of the individual
              nominated to purchase via the Internet;
        b)    The individual shall only purchase from well known companies;
        c)    Purchases should only be made from secure web sites (e.g. ones with a lock icon);
        d)    Items should only be purchased in this way if no equally economic alternative exists;
        e)    A purchase order should be completed and authorised in the normal way prior to incurring the
              expenditure; and
        f)    No purchase greater than £1,000 should be made in this way.


Minimum Price Competition
4.3.5   The University aims to obtain the right quality of supply or service at the best practically obtainable
        price. It is important that the procedures adopted are appropriate to the level of expenditure. The
        University has a number of pre-negotiated supply contracts (“approved supply contracts”) that must
        be considered in every case. Details of these contracts will be publicised and updated on a quarterly
        basis by the Purchasing Manager. Only where the Budget Manager can demonstrate that better
        VFM can be obtained should an alternative supplier be used. For an individual supply or service not
        covered by an approved supply contract then the minimum requirements that the Budget Manager
        must meet are:
        a)      Up to £1,000, satisfaction that VFM has been obtained. However, where the same good or
                service was available through an approved supply contract then the reason why the
                particular supplier was used should be documented and forwarded to finance with the copy
                of order;
        b)      From £1,000 to £5,000, three suppliers should have been contacted for quality and price. A
                brief note setting out the three suppliers considered and the results should be forwarded to
                finance with the copy of order;
        c)      From £5,001 to £15,000 three written quotes should be obtained. A note setting out the
                results should be forwarded to finance with the order;
        d)      £15,001 to the EU limit (currently about £150,000), a formal tender process should be
                undertaken which must comply with the detailed instructions issued by the Purchasing
                Manager;
        e)      Above EU limits as per our obligations to comply with EU directives - detailed instructions
                issued by the Purchasing Manager.
4.3.6   Budget Managers may not, with a single supplier within a 12-month period, break down a single
        transaction into a number of separate orders, or enter into a series of transactions under 4.3.5 a) or
        b), where, by aggregating the orders together, the more onerous testing under c) would be required
        under these regulations.
4.3.7   In each of the cases set out above, the company offering the most economically advantageous price,
        after considering lifetime costs, for the required quality of good or service should normally be
        accepted. If, exceptionally, the lowest price is not accepted then the reasons must be documented.
4.3.8   All of the documentation referred to in this section must be held in a form easily retrievable so it can
        be supplied to Finance or Audit representatives on request.



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4.3.9   Exceptions to these requirements may be authorised in writing by Deputy Vice-Chancellor Business
        & Resources or Director of Finance & Legal Services after consulting the Purchasing Manager.


Authorisation of Orders
4.3.10 Orders should clearly state (i) the name and address of supplier; (ii) the agreed price and (iii) a
       description of the supply or service. The order must be authorised in writing by the Budget Manager
       or their delegated representative. In authorising the order they are confirming that:
        a)    The purchase is necessary and appropriate; and
        b)    That the minimum price competition requirements set out in paragraph 4.3.6 have been
              complied with.
4.3.11 In addition, depending on the type and level of transaction (including contracts and any other form of
       financial commitment) further written authorisation is required as follows :

 Transaction type                                                Authorisation requirement
 All orders over £5,000 and all proposed lease or hire           Purchasing Manager
 contracts (which will only be approved where they offer value
 for money)
 Orders over £50,000 up to £250,000                              Deputy Vice-Chancellor Business &
                                                                 Resources or Director of Finance & Legal
                                                                 Services or their nominated representative
 All orders over £250,000 up to £500,000                         Vice-Chancellor:
 Orders over £500,000 up to £5 million                           Vice-Chancellor with one other member of
                                                                 SMT
 All orders over £5 million                                      The Board of Governors or Chair or Vice
                                                                 Chair:
 For the acquisition or disposal of an interest in land and      The Board of Governors
 buildings                                                       [Note: All such proposals must in the first
                                                                 instance be referred to the Deputy Vice-
                                                                 Chancellor, Business & Resources]
 Approval to rent land and buildings                             The Deputy Vice-Chancellor, Business &
                                                                 Resources
 Orders over £100,000 where a performance bond will not be       Director of Finance & Legal Services:
 obtained




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4.4 CONFIRMING SATISFACTORY RECEIPT OF GOODS AND SERVICES
STAGE IV
4.4.1    Each budget centre must have arrangements for checking and certifying goods on receipt. Copies
         of goods received notes must be kept as evidence of receipt. Disagreements concerning quantity or
         quality should be raised with the supplier as soon as possible and followed up in writing.
4.4.2    Invoices should normally be sent directly to the University‟s payment team by the supplier. The
         payments team should register the invoice (optional), affix a certification stamp and forward to the
         budget centre which raised the order within two working days of receipt.
4.4.3    The invoice should be checked by the budget centre and certified by the Budget Manager (or
         delegated representative) as properly payable after satisfying themselves that:
         a)    The goods or services were properly ordered;
         b)    The goods or services were delivered as invoiced;
         c)    The amount invoiced is correct and whether this is the final or part payment against the order;
         d)    Where the item meets the criteria for inclusion on the inventory that it has been appropriately
               security marked and entered on the inventory [see Section 9.2]; and
         e)    The invoice has not previously been passed for payment.


4.4.4    The certified invoice should be returned to the payments team as soon as possible, but in any case
         within 10 working days, unless a query has been raised in writing with the supplier, in which case a
         copy of the query is to be sent to the payments team.


4.5 MAKING AND ACCOUNTING FOR PAYMENTS
STAGE V
4.5.1    The payments team is responsible for preparing all payments promptly. Generally, it is the
         University‟s intention to pay all invoices within 30 days unless alternative terms of trade have been
         agreed.

4.6     UNIVERSITY PURCHASING CARDS
4.6.1    The Director of Finance & Legal Services shall establish arrangements for issuing purchasing cards
         and for setting out detailed instructions for their use and limits on transaction amounts and supplier
         types.
4.6.2    Monthly statements should be certified by the cardholder and by the Budget Manager or
         representative and forwarded to the payments team, using the same tests as if they were payments
         of invoices (see 4.4.3 above).




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5. EMPLOYMENT AND PAYMENTS TO STAFF

5.1 OBJECTIVE
Key Objective: That authorised payments are made accurately to University employees in accordance with
           their contract of employment and that the requirements of the Inland Revenue and Department
           of Social Security are met.

5.2 CONTRACTS OF EMPLOYMENT
5.2.1   The University shall only employ permanent staff (either full-time or part-time) for whom financial
        provision has been made in the budget approved by the Board.
5.2.2   The University may also employ temporary staff, where budget provision is available to meet the
        cost, on a short-term contract basis.
5.2.3   The Director of Human Resources is responsible for issuing contracts of employment to all
        University staff. This extends to permanent and temporary employees, part-time lecturers and
        casual staff.

5.3 EXTERNAL WORK
5.3.1   The contractual provisions under which lecturers and researchers shall undertake external work is
        reproduced in Annex C.

5.4 PAYROLL
5.4.1   The payment of all salaries, wages, compensation and other emoluments shall be made under
        arrangements approved by the Director of Finance & Legal Services.
5.4.2   The Director of Human Resources shall be responsible for keeping records and notifying the Director
        of Finance & Legal Services of:-
        a)   appointments, resignations, dismissals, suspensions involving changes in pay arrangements,
             secondments and transfers;
        b)   absences from duty for sickness or other reasons apart from approved annual or special leave
             with pay;
        c)   changes in remuneration other than normal increments, pay awards and agreements of general
             application.
5.4.3   The Director of Finance & Legal Services, through the payroll section of the finance department,
        shall maintain records of service for superannuation, income tax, national insurance and the like,
        complete the appropriate records, and ensure that payments can be made correctly and promptly to
        third parties.
5.4.4   All time records or other pay documents shall be in a form prescribed or approved by the Director of
        Human Resources and shall be certified in writing by the Budget Manager or other designated officer
        approved by the Director of Human Resources.
5.4.5   Each Budget Manager shall be responsible for the submission of the relevant records within an
        approved timetable to enable the payroll section of the finance department to make payments by the
        due dates.
5.4.6   At least once each financial year the Director of Finance & Legal Services shall arrange for Budget
        Managers to verify the continued employment of staff by circulating a payroll list and requiring that
        the list is checked and returned within a specified period.
5.4.7   Payment by BACS shall be authorised in advance by the Director of Finance & Legal Services or
        delegated representative.




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5.5 EXPENSES
5.5.1   All claims for payment of subsistence allowances, travelling and incidental expenses shall be
        completed in a form approved by the Director of Finance & Legal Services. All claims should comply
        with the University‟s published policy on expenses.
5.5.2   Claims by members of staff must be certified by the Budget Manager, or in the case of Budget
        Managers by their line manager, after satisfying themselves that:
        a)   the expenses were properly and necessarily incurred for the purposes of the University;
        b)   the arrangements were such that they gave value for money;
        c)   the expenses are properly payable by the institution; and
        d)   the expenses have not been paid by the University in another way or reimbursed by another
             body.
5.5.3   Reimbursement of members of staff professional subscriptions, membership fees and other personal
        expenses are not permitted.
5.5.4   No member of staff may authorise a payment to themselves.




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6. INCOME, RESEARCH, CONSULTANCY AND INCOME-GENERATING ACTIVITIES

6.1 OBJECTIVES
Key Objective: To ensure that University products and services are appropriately priced and that income
            for products and services are recovered from the University‟s customers in a timely manner.

6.2 PRICING POLICY
6.2.1   The University‟s policy is that activities should be priced on the basis of full costs plus such surplus
        over full cost as the market will bear. Exceptionally, research contracts where significant non-
        financial benefit accrue may be undertaken on the basis of direct costs plus a contribution to other
        costs at a level consistent with SMT‟s stated policy.

6.3 SETTING FEES AND CHARGES
6.3.1   The Board shall determine the tuition and other fees payable to the University, or establish a
        framework for the determination of the fees.
6.3.2   The Director of Finance & Legal Services shall provide such information and guidance to enable fees
        or charges to be determined in accordance with the agreed framework. Prior to the commencement
        of a financial year the Director of Finance & Legal Services shall certify as correct the fees and
        charges for the coming year.
6.3.3   The Director of Finance & Legal Services shall be consulted on any proposals for the introduction of
        new charges or a variation in the basis of existing charges.

6.4 TUITION FEES
6.4.1   The Academic Registrar shall be responsible for maintaining an adequate record of students
        attending the University so that the appropriate tuition fees may be levied by the finance department.
6.4.2   The waiver or remission of fees will only be permitted in accordance with a policy approved by SMT.
        The Income Manager shall determine all cases for waiver where the cost is to be borne fully or
        partially from central resources.

6.5 RESEARCH AND CONSULTANCY (EXTERNAL WORK)
6.5.1   Budget Managers are responsible for ensuring that initial proposals to undertake research or
        consultancy arrangements for other organisations or individuals shall not be submitted to potential
        customers unless it has been evaluated and approved, including the proposed costs and allocation
        of income within the University, in accordance with the University‟s Contracts Manual (see paragraph
        1.2.5).
6.5.2   Contracts for research or consultancy should not be accepted except in accordance with the
        Contracts Manual. This is essential, as otherwise the contract is invalid and the University‟s
        professional indemnity insurance policy is also invalid.
6.5.3   Each grant or contract should have a named supervisor or grant holder and be allocated to a budget
        centre.
6.5.4   Budget Managers are responsible for ensuring that terms and conditions of grants and contractual
        obligations for other work are complied with. In addition, they should ensure that information,
        including financial information, is kept in such a way as to enable timely and accurate invoices to be
        raised against the customer.

6.6 ISSUING INVOICES
6.6.1   Particulars of all charges to be made for work done, services rendered or goods supplied and of all
        other amounts due shall be promptly notified to the Director of Finance & Legal Services. Invoices
        for income due to the University shall be raised and the income collected by the finance department,
        except where alternative arrangements have been approved by Director of Finance & Legal
        Services.


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6.7 CREDIT CONTROL
6.7.1   The Director of Finance & Legal Services will determine the arrangements for the collection of
        amounts due.
6.7.2   If a debtor fails to pay after receiving a statement and a sequence of reminders, the debtor is to be
        informed that legal proceedings will be instituted if the amount outstanding remains unpaid. The
        Director of Finance & Legal Services or delegated representative shall determine subsequent action.
6.7.3   Arrangements for the collection of outstanding debts may only be made through the finance
        department. Confirmation of a debtor‟s status shall only be given through the finance department.

6.8 WRITING OFF DEBTS
6.8.1   Sums due to the University shall not be written off in the books of account except on the authority of
        the Director of Finance & Legal Services, or delegated representative, when satisfied that the debt is
        irrecoverable or it is not worth attempting to recover in view of the costs involved. Any account
        written off exceeding £10,000 shall be reported to the Board.




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7. BANKING ARRANGEMENTS AND CASH HANDLING

7.1 OBJECTIVES
Key Objective: That the University‟s resources are safeguarded and used effectively and to promote the
           efficient discharge of the exchequer function.

7.2 ARRANGEMENTS
7.2.1   The appointment of the University‟s bankers will be confirmed by the Board.
7.2.2   The Director of Finance & Legal Services is responsible for the prompt collection, security and
        banking of all income received.

7.3 BANK ACCOUNTS
7.3.1   The Director of Finance & Legal Services shall be responsible for the operation of all matters in
        relation to the University‟s bank accounts. All bank accounts shall be in the name of the University.
7.3.2   No member of staff, other than the Deputy Vice-Chancellor, Business & Resources, or Director of
        Finance & Legal Services, shall open any bank account in the name of the University or issue
        instructions to the University‟s bankers.
7.3.3   All cheques stationery shall be ordered only on the authority of the Director of Finance & Legal
        Services, who shall make adequate arrangements for their custody.

7.4 CHEQUE SIGNATORIES AND AUTHORISATION LIMITS
7.4.1   For the purpose of this section, “cheques” includes any form of transfer or payment from the
        University‟s bank accounts.
7.4.2   The cheque-signing authority for the University shall be as follows:-
        all cheques up to £5,000
        Signature by the Deputy Vice-Chancellor, and Registrar, either by facsimile or otherwise, or by the
        Director of Finance & Legal Services or Deputy Director (Finance) or Head of Financial Planning and
        Management Information or Senior Management Accountant or Group Financial Accountant or
        Financial Accountant or the Vice Chancellor or Deputy Vice Chancellor, Academic Affairs.
        all cheques between £5,001 and £100,000
        Signature by any two of the Deputy Vice-Chancellor, and Registrar, either by facsimile or otherwise,
        or by any of the Vice Chancellor or Deputy Vice Chancellor Academic Affairs, or the Director of
        Finance & Legal Services, the Deputy Director (Finance), the Head of Financial Planning and
        Management Information, the Group Financial Accountant or Financial Accountant or the Vice
        Chancellor or Deputy Vice Chancellor, Academic Affairs.
        all cheques above £100,000
        Signature by any two of the Deputy Vice-Chancellor, and Registrar by hand or the Vice Chancellor or
        Deputy Vice Chancellor, Academic Affairs or the Director of Finance & Legal Services, the Deputy
        Director (Finance), the Head of Financial Planning and Management Information, or Group Financial
        Accountant or Financial Accountant.
        General Imprest Account.
        Cheques to a maximum of £1000 may be signed by the Deputy Vice-Chancellor, and Registrar, or
        the Director of Finance & Legal Services or the Deputy Director (Finance) or Head of Financial
        Planning and Management Information, or Group Financial Accountant or Financial Accountant, or
        the Vice Chancellor or Deputy Vice Chancellor, Academic Affairs.

7.4.3   The Director of Finance & Legal Services shall establish such Imprest Accounts as are necessary for
        the efficient execution of the University‟s affairs and determine the authorised signatories for
        cheques up to £1,000.
7.4.4   Investments on the money market in accordance with the approved investment strategy shall by on
        the signature of any two of: the members of SMT, Director of Finance & Legal Services, Deputy


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        Director (Finance), Head of Financial Planning and Management Information, Senior Management
        Accountant, Group Financial Accountant and the Financial Accountant.
7.4.5   Transfers between the University‟s bank accounts shall be on the authority of any one of: Deputy
        Vice-Chancellor, and Registrar, the Vice Chancellor or Deputy Vice Chancellor, Academic Affairs,
        the Director of Finance & Legal Services, Deputy Director (Finance) or Head of Financial Planning
        and Management Information or Senior Management Accountant or Group Financial Accountant or
        Financial Accountant.
7.4.6   The Director of Finance & Legal Services is responsible for ensuring that all bank accounts are
        subject to regular and documented reconciliation and review.

7.5 COLLECTION AND BANKING OF CASH OR CHEQUES
7.5.1   Members of staff shall be informed, on appointment, by the appropriate Budget Manager, of their
        responsibilities and duties for the collection, handling or disbursement of cheques, cash, etc.
7.5.2   All monies received by budget centres from whatever source must be recorded by the budget centre
        on a daily basis together with the form in which they were received. An official receipt shall be
        issued for all such amounts at the time of collection. Arrangements should be made for the regular
        transporting (but as a minimum one every seven days) of such monies to the University‟s cashier in
        a manner consistent with the requirements set out by the Director of Finance & Legal Services.
7.5.3   Maximum limits for overnight unbanked money shall be agreed with the Director of Finance & Legal
        Services and shall not be exceeded without express permission.
7.5.4   All receipts forms, books, tickets and other such items shall be ordered and supplied for budget
        centres by the Director of Finance & Legal Services who shall be satisfied as to the arrangements for
        their control. No member of staff shall give a receipt for money received on behalf of the University
        on any form other than that prescribed by the Director of Finance & Legal Services.
7.5.5   Only members of staff authorised by the Director of Finance & Legal Services shall collect or accept
        monies due to the University and official receipts shall be issued for all such amounts at the time of
        collection.
7.5.6   All monies received shall be banked intact. Under no circumstances shall official monies be used for
        the encashment of private cheques; nor must change be given when payment is made by cheque.

7.6 LOSSES OR SHORTFALLS
7.6.1   Any loss or shortfall of cash, cheques or other negotiable instruments, however occasioned, shall be
        reported immediately in writing to the Director of Finance & Legal Services.

7.7 PETTY CASH
7.7.1   The Director of Finance & Legal Services shall authorise the establishment of such imprest bank
        accounts and petty cash floats as are considered appropriate for the purposes of defraying small
        irregular payments of properly authorised and incurred expenditure.
7.7.2   Petty cash floats, including that held by the finance department, may be used to fund payments up to
        £30 but should not normally be used to pay expenses incurred by staff – for which separate
        arrangements exist – unless hardship would be caused.
7.7.3   Members of staff who are authorised to hold cash shall hold it securely and keep an up-to-date
        record in chronological order of amounts received and/or paid at all times in respect of each
        separate holding, and, periodically to reconcile that account with the amount actually in hand. Any
        discrepancies shall be reported to the Director of Finance & Legal Services without delay.

7.8 STAFF ADVANCE
7.8.1   The finance department shall make arrangements to provide an advance of cash in order to enable a
        member of staff to carry out a particular duty. The member of staff is responsible for producing a
        statement of account for the advance at the end of the activity; this includes producing appropriate
        evidence. Any unused portion of the advance must be paid over to the finance department
        immediately. The statement of account must be authorised by the Budget Manager, or where the

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        Budget Manager is responsible for producing the statement, their line manager. Where an individual
        fails to act in accordance with this regulation, the University may deduct such advances as have
        been made to an individual from their salary payment.

7.9 UNIVERSITY CREDIT CARDS
7.9.1   The Director of Finance & Legal Services may authorise the issue of University credit cards on the
        recommendation of a Budget Manager for use by a member of staff in incurring expenditure which
        otherwise would be covered under the regulations covering expenses, petty cash, or staff advance.
        They may not be used for general University expenditure. It shall be the Budget Manager‟s
        responsibility to ensure that such expenditure is authorised in accordance with these regulations,
        depending on the expenditure type. The Director of Finance & Legal Services shall issue to card
        holders terms and conditions and where such terms and conditions are breached, the credit card
        may be cancelled.




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8. HOSPITALITY AND GIFTS
Hospitality in this context is defined as refreshments, food or entertainment in excess of that provided for
within the University‟s travel and subsistence rules.
8.1 OBJECTIVES
Key Objective: That hospitality given or received is not excessive, taking into account that: (i) the majority of
                 the University‟s funding comes from the public purse; (ii) the requirements of the Inland
                 Revenue are properly observed; and (iii) income tax issues are taken into proper account.

8.2 RECEIPT OF HOSPITALITY AND GIFTS
8.2.1   A member of staff should not accept gifts or hospitality that may give rise to the suspicion that they
        may have a conflict of interest or have been influenced in any decision. Staff dealing with providers
        of supplies or services should be particularly careful. More detailed guidance has been developed
        by the Directorate of Human Resources.
8.2.2   Where it would be inappropriate to decline a gift, it may be accepted on behalf of the University and
        given to a school or department, or the individual could „purchase‟ the gift by making a charitable
        donation of the value.

8.3 EXPENDITURE ON HOSPITALITY AND GIFTS
8.3.1   In giving hospitality or gifts it is necessary for staff to take account of Inland Revenue rules and
        detailed instructions on compliance issued by the Director of Finance & Legal Services.
8.3.2   In addition, authorisation is required before incurring such expenditure as follows:
        a)    members of staff other than those listed below require the approval of their Budget Manager
              before incurring expenditure;
        b)    Delegated representatives of a Budget Manager require the approval of their Budget Manager
              before incurring expenditure in excess of £100;
        c)    Budget Managers require the approval of the appropriate member of the SMT before incurring
              expenditure in excess of £300;
        d)    SMT members other than the Vice-Chancellor require the approval of the Vice-Chancellor
              before incurring expenditure in excess of £300; and
        e)    the Vice-Chancellor requires the approval of the Chair or Vice-Chair of Governors before
              incurring expenditure in excess of £1,000.




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9. ASSETS AND SECURITY
9.1 OBJECTIVE
Key Objective: To safeguard the assets of the University

9.2 ACQUISITION OF ASSETS
9.2.1   On acquisition it is the Budget Manager‟s responsibility to ensure that the asset is entered onto the
        University‟s fixed asset register and the budget centre inventory, and that the asset is appropriately
        security marked.

9.3 SAFEGUARDING OF ASSETS
9.3.1   Each Budget Manager shall be responsible for the care and custody of all furniture, equipment, plant
        and all other such assets in the budget centre.
9.3.2   The budget centre shall establish an inventory which records all assets recorded on the fixed assets
        register. In addition, the inventory shall include all items of moveable equipment which cost at least
        £250 and are considered to be a likely target for theft and/or easily moveable. The Budget Manager
        shall verify the accuracy of the inventory on an annual basis.

9.4 STOCKS AND STORES
9.4.1   Each Budget Manager shall be responsible for the care and custody of all stock and stores in the
        budget centre and shall ensure that such stock and stores are recorded in a manner agreed by the
        Director of Finance & Legal Services.
9.4.2   Budget Managers shall arrange for periodical test checks of stocks and stores other than by the
        storekeepers and shall ensure that all stock and stores are checked regularly but at least once a
        year. Where lines of stock are fast moving, checks must be carried out at more frequent intervals.
9.4.3   The finance department may attend stocktaking or assets verification checks or may carry out its
        own checks, or require a budget centre to carry out further checks as appear necessary.

9.5 DISPOSAL OF ASSETS, STOCKS AND STORES
9.5.1   Except for land or buildings, assets or other property deemed to be obsolete or surplus to
        requirements shall not be disposed of either by sale or destruction except as in accordance with
        procedures specified by the Director of Finance & Legal Services. (see also paragraph 4.3.11)

9.6 LOSS OR DESTRUCTION OF ASSETS, STOCKS AND STORES
9.6.1   Any loss or destruction of an asset, stock or store is to be certified by the Budget Manager and
        notified to the Director of Finance & Legal Services who may, after any investigation deemed
        necessary, authorise the adjustment of the asset records to reflect the actual position.

9.7 REMOVAL AND USE OF UNIVERSITY ASSETS, STOCKS AND STORES
9.7.1   No property of the University shall be removed otherwise than in the ordinary course of business or
        used otherwise than for the University‟s purposes except in accordance with written consent given
        by the Deputy Vice-Chancellor, Business & Resources.
9.8 TREASURY MANAGEMENT
9.8.1   All investments of money under the control of the University shall be in the name of the University
        and made under arrangements approved by the Board of Governors.
9.8.2   All borrowing shall be effected in the name of the University.
9.8.3   The Board will approve strategies and policies for cash management, long-term investments and
        borrowing.
9.8.4   The Director of Finance & Legal Services will make operational decisions concerning cash
        management within the strategy approved by the Board and borrowing within approved facilities.




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10. RISK MANAGEMENT
10.1    OBJECTIVE
Key Objective: To ensure the identification of risk and the implementation of appropriate risk management
                strategies.
10.1.1 The Director of Finance & Legal Services is responsible for developing a risk management strategy
       in order to identify the risks facing the institution and the types of protection required to cover these
       risks.
10.1.2 The Director of Finance & Legal Services shall effect all insurances as are necessary to protect the
       University‟s interests and negotiate all claims, in consultation with Budget Managers as required.
10.1.3 Budget Managers shall promptly notify the Director of Finance & Legal Services of all new risks that
       require to be insured and of any alterations affecting existing risks or insurances.
10.1.4 The Director of Finance & Legal Services, through the finance department, shall keep a register of all
       insurances effected by the University and risks covered thereby and annually provide Budget
       Managers with a statement of all insurances in force in order that they may be jointly checked and
       reviewed.
10.1.5 Budget Managers shall immediately notify the finance department in writing of any loss, damage or
       liability or of any event likely to lead to a claim. All monies due and received from insurers shall be
       submitted to the finance department.
10.1.6 Budget Managers shall consult the Director of Finance & Legal Services regarding the terms of any
       indemnity which the University is requested to give.




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11. OTHER REGULATIONS

11.1    UNIVERSITY COMPANIES AND OTHER COMPANIES
11.1.1 From time to time the Board may approve the formation of a company to undertake specific aspects
       of the University‟s work.
11.1.2 The University may own all or a proportion of the shares of any such companies as decided by the
       Board.
11.1.3 Unless otherwise authorised by the Board, all such companies within the control of the Board shall
       adhere to these financial regulations.
11.1.4 No member of staff shall take any financial interest or hold office or employment with any such
       company or any other company with which the University is accustomed to deal without the prior
       written approval of the Vice-Chancellor.
11.1.5 Where a member of staff, who is directly or indirectly involved in the procurement or execution of
       contracts with any company with which the University becomes contractually involved, has a
       significant financial interest in, or holds an office or employment with, that company, then they shall
       declare that interest and shall not continue it without the prior written approval of the Deputy Vice-
       Chancellor, Business & Resources.
11.1.6 Where a member of the immediate family of, or a person having a close personal relationship with,
       such member of staff has a significant interest in, or holds an office or employment with, that
       company, then such a member of staff shall declare that interest to the Deputy Vice-Chancellor,
       Business & Resources.

11.2    TAXATION
11.2.1 The University is an exempt charity and as such is not liable for corporation or income tax on any of
       its charitable activities. The University is registered for Value Added Tax. The University is unable to
       recover input tax on the majority of its purchases, education and research being exempt activities
       under current VAT legislation.
11.2.2 Oxford Brookes Enterprises Ltd operates as a commercial organisation and is liable to corporation
       tax. The company is a wholly-owned subsidiary and the tax on distributed profits are recoverable by
       the University. The company is registered for VAT and normal legislation applies.
11.2.3 The Director of Finance & Legal Services shall make proper arrangements for the prompt payment
       of taxes due, together with appropriate tax returns within the due dates, ensuring that the University
       does not incur penalties for the incorrect treatment of VAT and other taxes.
11.2.4 The Director of Finance & Legal Services shall make proper arrangements to minimise the taxation
       liability of the University and to comply with relevant taxation legislation.




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11.3    BEQUESTS, DONATIONS, SPECIAL FUNDS, ETC.
11.3.1 From time to time, the University may receive bequests, donations or other special funds. Wherever
       possible these shall be deposited with the University‟s bankers, in the University‟s name and dealt
       with in accordance with the financial regulations.
11.3.2 Wherever possible, the advice of the Director of University Relations shall be given to the person
       making the bequest, donation, etc. to ensure that the management of the funds is, and will remain
       into the future, simple and tax efficient.
11.3.3 Except where either independent trustees have been appointed or trustees have been appointed by
       the Board, the Director of Finance & Legal Services shall be responsible for the establishment and
       administration of any special trusts or funds. The Director of Finance & Legal Services shall be
       responsible for maintaining such separate financial accounts and records as necessary for the
       proper control of such special trusts or funds.
11.3.4 All expenditure on such special trusts or funds shall be made only against properly certified invoices
       submitted to the Director of Finance & Legal Services, who shall be responsible for making
       payments which shall be by official cheques drawn on the University.
11.3.5 Surplus balances on such special trusts or funds shall be invested in accordance with procedures
       agreed by the Board, and the proceeds therefrom shall be available for the benefit of the purposes
       for which the special trusts or funds were established.
11.3.6 All gifts, whether of money, services or equipment, shall be accepted by the Vice-Chancellor and
       their receipt acknowledged.
11.3.7 All such bequests, donations and special funds will be subject to the normal audit requirements and
       procedures of the University.

11.4    DATA PROCESSING
11.4.1 The Director of Finance & Legal Services shall be responsible, in consultation with the Head of
       Management Information Systems, for the accuracy and security of the financial data of the
       University.
11.4.2 No system for the automatic processing of financial data shall be introduced without the prior
       approval of the Director of Finance & Legal Services.
11.4.3 The Director of Finance & Legal Services shall devise and implement any necessary procedures to
       protect the University and individuals from misuse of any financial information put on computer files
       within the responsibility of the Deputy Vice-Chancellor, Business & Resources after taking account of
       the relevant advice of the Data Protection Officer.
11.4.4 The Director of Finance & Legal Services, in consultation with the Head of Management Information
       Systems, shall be responsible for the development and implementation of adequate contingency
       plans designed to minimise the financial consequences for the University of a failure in its computing
       services.

11.5    ACCOUNTING RECORDS
11.5.1 The Director of Finance & Legal Services is responsible for the retention of financial documents.
       These should be kept in a form acceptable to the relevant authorities.
11.5.2 The institution is required by law to retain prime documents for six years. These include:
               official orders
               paid invoices
               accounts raised
               bank statements
               copies of receipts
               paid cheques
               part-time lecturer contracts



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              a complete transaction record for each year from the computerised accounting system either
               on paper or other media
              payroll data

11.5.3 Additionally, for auditing and other purposes, other financial documents, including goods received
       notes and documentation supporting internal charges and journals should be retained for three
       years.


11.6   USE OF THE SEAL OF CORPORATION
11.6.1 The application of the Seal of the Corporation shall be authenticated by the signature of two
       members of the Board of Governors. Use of the Seal shall be reported to the next meeting of the
       Board.




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ANNEX A: SEVEN PRINCIPLES OF PUBLIC LIFE
Abstracted from the Nolan Committee report

Selflessness
Holders of public office should take decisions solely in terms of the public interest. They should not do so in
order to gain financial or other material benefits for themselves, their family, or their friends.

Integrity
Holders of public office should not place themselves under any financial or other obligation to outside
individuals or organisations that might influence them in the performance of their official duties.

Objectivity
In carrying out public business, including making public appointments, awarding contracts or recommending
individuals for rewards and benefits, holders of public office should make choices on merit.

Accountability
Holders of public office are accountable for their decisions and actions to the public and must submit
themselves to whatever scrutiny is appropriate to their office.

Openness
Holders of public office should be as open as possible about all the decisions and actions that they take.
They should give reasons for their decisions and restrict information only when the wider public interest
clearly demands.

Honesty
Holders of public office have a duty to declare any private interests relating to their public duties and to take
steps to resolve any conflicts arising in a way that protects the public interest.

Leadership
Holders of public office should promote and support these principles by leadership and example.




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ANNEX B: EXTRACT FROM THE ARTICLES OF GOVERNMENT

FINANCIAL MATTERS
Fees
15.1  The Board of Governors shall determine the tuition and other fees payable to the University, or
      establish a framework for the determination of those fees subject in respect of courses of further
      education to any regulations made by the Secretary of State within the powers conferred by the
      Education Acts 1944 to 1988.

Accounts and Estimates
15.2  The Board of Governors shall keep true records of the University‟s income and expenditure in
      accordance with the provisions of the Act and shall provide the Higher Education Funding Council for
      England with true accounts at such times and in such form as the Council may direct.

15.3    Annual estimates of income and expenditure and a balance sheet shall be prepared by the Vice-
        Chancellor for the consideration and approval of the Board of Governors.

Audit
15.4    External auditors shall be appointed, and other audit work conducted, in accordance with any
        requirements of the Higher Education Funding Council for England.

Financial Standing Orders
15.5   The Board of Governors shall approve such financial standing orders, as it considers necessary to
       secure the proper financial management of the University and to safeguard its assets. Those
       standing orders shall include determination of the authority required for:-

        a)   the acquisition and disposal of land and other property including interests in land or other
             property;
        b)   entering into contracts of employment;
        c)   entering into contracts for the provision of supplies and services both to and by the University;
        d)   the borrowing of monies and the grant of any mortgage, charge or other security in respect of
             any land or other property of the University;
        e)   the acceptance of gifts of money, land or other property;




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ANNEX C: EXTERNAL WORK
1.1 External work, defined in section B2 of the Staff Handbook, is any work which you undertake which has
    not been determined as part of your normal duties, through discussion with your Head of School.
1.2 The University encourages external work which is supportive of the professional responsibilities of
    lecturers and research staff, and wishes to develop external work in order to enhance the quality of
    teaching and help secure the University‟s financial future. Such work may well be in support of that part
    of the University‟s Mission which is to assist business, industry, cultural organisations, services, the
    professions and the community at large through applied research and consultancy activities and
    courses.
1.3 You must obtain the University‟s approval before undertaking any external work except for:
    a)   external examining;
    b)   acting as an assessor or moderator;
    c)   the production of scholarly works such as books, articles and papers;
    d)   unremunerated activities. An activity is only regarded as unremunerated if no valuable consideration
         passes between any two parties in recognition of the work being undertaken.

NOTE: It is advisable to keep your Head of School informed.
1.4 In order to obtain approval to undertake external work, you should complete an application form
    obtainable from your Head of School. After completing the form, pass it on to your Head of School who
    will apply the following criteria:

    (a) does the activity conflict with the interest of the University? If the answer is “yes”, it is unlikely that
        approval can be given;
    (b) does the activity compete with the interests of the University, e.g. that it is work which the
        University does or could have expected to undertake as a part of its educational, training, research
        or consultancy mission, using your expertise or that of others? If the answer is yes, approval will
        only normally be given if the activity is conducted as an official University contract in accordance
        with the University Contracts and Commercial Services Manual. The Manual is issued by the
        Director of Marketing and Communications and copies are held in Departments and Schools;
    (c) will the activity interfere with the performance of your normal professional duties? If the answer is
        “yes”, the Head may consider that your agreed duties should be varied to accommodate the work;
        otherwise approval cannot be given. The Manual mentioned in (b) will also be used for work
        approved in this way.
1.5 If the answer to (a), (b) and (c) is “no” in each case, your Head will approve the proposal, subject to it
    being a wholly private undertaking. However, if the total potential earnings are in excess of £50,000 this
    will be referred by the Head of the Department/School to the Deputy Vice-Chancellor, Business &
    Resources.
1.6 Where approval is given for external work to be conducted in accordance with the Manual, a copy of the
    approval will be sent to the Head of Contracts and Commercial Services. Advice will then be provided
    on which to base the pricing of the project and/or draw up the contract with the client.
1.7 In the case of external work undertaken as part of a University contract you may receive additional
    payments in accordance with the standard rate agreed by the Deputy Vice-Chancellor, Business &
    Resources. Higher rates may be agreed by your Head of School and these will be built into the pricing
    of the contract. Clearly higher rates cannot be approved if these inflate the price of the contract above
    the level which the client is prepared to pay.
1.8 You can obtain further guidance on the arrangements for University contracts from the Research
    Services and Business Development Directorate.
1.9 Guidance on the exploitation of inventions is also available from the Research Services and Business
    Development Directorate.

				
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