Financial Regulations

CONTENTS

A General Provisions

1. Background

2. Status of Financial Regulations

B Corporate Governance

3. The Court

4. Council

5 Senate

6. Committee Structure

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

7. University Members and Officers with Financial Responsibility

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

8. Risk Management

9. Code of Conduct

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

C Financial Management and Control

10. Financial Planning and Budgetary Control

11. Accounting Arrangements

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

12. Audit Requirements

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

13. Treasury Management

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

14. Income

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

15. Research Grants and Contracts

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

16. Other Income Generating Activity

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

17. Intellectual Property Rights and Patents

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

18. Expenditure and Purchasing

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

19. Pay Expenditure

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

20. Assets

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

21. Funds Held on Trust

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

22. Other

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

A GENERAL PROVISIONS

1 Background

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

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

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

 

2 Status of Financial Regulations

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

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

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

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

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

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

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

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

B CORPORATE GOVERNANCE

3 The Court

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

4 Council

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

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

The full powers of the Council are given in Ordinance.

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

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

 

5 Senate

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

6 Committee Structure

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

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

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

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

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

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

 

7 University Members and Officers with Financial Responsibility

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

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

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

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

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

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

 

8 Risk Management

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

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

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

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

9 Code of Conduct

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

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

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

9.4 Bribery Receiving gifts or hospitality
It is an offence under the Bribery Act 2010 for members of staff to request, accept or agreeing to accept a financial or other advantage from another individual/organisation in exchange for improperly performing a relevant function or activity. The guiding principles to be followed by all members of staff must be:
• the conduct of individuals should not create the suspicion of any conflict between their official duty and their private interest
• the action of individuals acting in an official capacity should not give the impression (to any member of the public, to any organisation with whom they deal or to their colleagues) that they have been (or may have been) influenced by a benefit to show favour or disfavour to any person or organisation.
Thus, members of staff should not accept any gifts, rewards or hospitality (or have them given to members of their families) from any organisation or individual with whom they have contact in the course of their work that would cause them to reach a position whereby they might be, or might be deemed by others to have been, influenced in making a business decision as a consequence of accepting such hospitality. The frequency and scale of hospitality accepted should not be significantly greater than the University would be likely to provide in return.

Guidance on acceptable hospitality is contained in the University’s Expenses and Hospitality Policy which is available on the University’s website and data on hospitality received by senior staff is collected annually.

9.5 Accepting or offering inducements
In its commitment to upholding ethical standards of business conduct, the University adopts a zero tolerance approach to bribery and corruption in all jurisdictions. Staff should be mindful of the provision of the Bribery Act 2010 and the University’s Corporate and Social Responsibility Business Conduct policy.

 

C FINANCIAL MANAGEMENT AND CONTROL

10 Financial Planning and Budgetary Control

10.1
The Director of Finance is responsible for preparing a long term Financial Forecast and Financial Strategy.

10.2
The Financial Strategy is published on the Finance website and addresses:
• how the financial strategy is developed and integrated within the University’s Strategic plan
• how the strategic plan is translated into an operating plan and annual budget
• how the University’s resources are managed, controlled and protected
• how the University’s assets are identified, safeguarded and utilised
• how the University ensures that all liabilities are identified and properly managed

10.3
The Scrutiny and Finance Committee is responsible for preparing plans for resource allocation and for long-term financial forecasts for submission to the Council.

10.4
The Director of Finance is responsible for ensuring proper procedures exist for the control of income and expenditure against approved budgets. Regular information will be provided to Budget Holders, the University Executive Board, the Scrutiny and Finance Committee and the Council.

10.5
The Director of Finance is responsible for preparing each year an annual budget, incorporating income and expenditure account, balance sheet and cash flows, and capital programme for consideration by the Scrutiny and Finance Committee, before submission to the Council.

10.6
Deans, Heads of School and Head of Directorate are responsible for the economic, efficient and effective use of resources allocated to them.

10.7
Project budgets (including capital) with a budgetary value of more than £100k and less than £1.0m must be approved in advance by a relevant UEB member. The Vice Chancellor can approve projects in excess of £1.0m and up to £3.0m.
All project budgets (including capital) with a value of £3.0m or more must be approved in advance by Council.

The acquisition and disposal of operational land and buildings must be reviewed by Scrutiny and Finance Committee if it is over £3m. Council must approve any acquisition or disposal over £3m. If the land or buildings is/ are owned by a Trust, the relevant Trust Committee should also review and recommend approval to Council as Trustee,

The acquisition, construction, refurbishment or disposal of buildings and the acquisition and disposal of land classed as Investment Property must be reviewed by the Investment and Development Committee and approved by Council if over £3m. If the land or buildings is/ are owned by a Trust, the relevant Trust Committee should also review and recommend approval to Council as Trustee.

Separate guidance is available on the information that is required in any proposal submitted to Scrutiny and Finance Committee for approval.

It should be noted that any major change project, or a project with unusually high risk (as defined through the change governance process) should go to Council regardless of monetary values.

The Chief Strategy Officer and University Secretary is responsible for seeing that a Project Committee is appointed for each major capital project (those with an estimated cost in excess of £1 million) and that a budget is in place.

All other expenditure will follow the above delegation of authority and this will be reflected in the University’s core financial systems.

11 Accounting arrangements

11.1 Financial year
The University’s financial year will run from 1 August until 31 July the following year.

11.2 Basis of accounting
The consolidated financial statements are prepared in accordance with applicable accounting standards, currently the SORP for Further and Higher Education.

11.3 Format of the financial statements
The financial statements are prepared in accordance with the Statement of Recommended Practice Accounting for Further and Higher Education, any specific disclosures required by the OfS, and in accordance with the provisions of the Companies Act 2006, if that is appropriate.

11.4 Provision of Financial Statements and financial management information
The Director of Finance is responsible for providing to the Scrutiny and Finance Committee as soon as is practicable at the end of the year Financial Statements for that year and in-year reports at intervals and in a format to be determined by the Scrutiny and Finance Committee.

11.5 Accounting Systems and Records
All accounting systems and records within the University shall be in accordance with the requirements of the Director of Finance. Schools and Directorates should not maintain duplicate financial systems and records where the main accounting system meets their requirements. Subsidiaries and other controlled entities should adopt these systems and records as a default position.

11.6 Retention of accounting records
The Director of Finance is responsible for the retention of financial and related documents. These should be kept in a form that is acceptable to the relevant authorities.

The University is required by law to retain prime documents for seven years. These include:
• supplier invoices
• payroll records, including part-time lecturers’ and sessional contracts
• sales invoices
• banking records

Members of staff should also ensure that retention arrangements comply with any specific requirements of funding organisations.

11.7 Public access
Copies of the most recent financial statements can be found on the University's website.

11.8 Taxation
The Director of Finance is responsible for providing advice, in the light of guidance issued by the appropriate bodies and relevant legislation as it applies, on all taxation issues, to the University and its subsidiary companies and Trusts. The Director of Finance will issue instructions and guidance on compliance with statutory requirements including those concerning VAT, corporation tax and import duty.

The Director of Human Resources is responsible for ensuring that the statutory requirements concerning PAYE and National insurance are adhered to.

The Director of Finance is responsible for maintaining the University’s tax records, making all tax payments, receiving tax credits and submitting VAT and Corporation tax returns by their due date as appropriate.

11.9 International Mobility
The Director of Finance (working with the Director of Human Resources as necessary) is responsible for ensuring that the University meets its financial and compliance obligations including overseas tax liabilities where applicable, in respect of activities carried on outside of the UK. Human Resources, Finance and Legal Services are to be informed of any significant business opportunities which will take place outside the UK (including partnerships with overseas Institutes), prior to commencement and signing of any contract. Activities of overseas visitors to the University in the UK will be monitored to at School/Directorate level to ensure compliance with UK tax regulations. Any employee whose intended country of work will not be the UK, must agree this with Human Resources prior to carrying their duties out overseas, to ensure all contractual and tax implications are considered.

12 Audit Requirements

12.1 General
External auditors and internal auditors shall have authority to:
• access University premises at reasonable times
• access all assets, records, documents and correspondence relating to any financial and other transactions of the University
• require and receive such explanations as are necessary concerning any matter under
examination
• require any employee of the University to account for cash, stores or any other University
property under his or her control
• access records belonging to third parties, such as contractors, when required.

12.2 External audit
The appointment of external auditors will take place annually and is the responsibility of the Council. The Council will be advised by the Audit Committee.
The primary role of external audit is to report on the University’s financial statements and to carry out such examination of the statements and underlying records and control systems as are necessary to reach their opinion on the statements and to report on the appropriate use of funds. Their duties will be in accordance with advice set out in the OfS Audit Code of Practice and the Auditing Practices Board’s statements of auditing standards.

12.3 Internal audit
The internal auditor is appointed by the Council on the recommendation of the Audit Committee.
The University’s Terms and Conditions of funding with the OfS requires that it has an effective internal audit function whose duties and responsibilities are in accordance with advice set out in the Audit Code of Practice. The main responsibility of internal audit is to provide the Council, the Vice-Chancellor and senior management with assurances on the adequacy and effectiveness of risk management, control and governance arrangements.
The internal audit service remains independent in its planning and operation but has direct access to the President of the Council, Vice-Chancellor and Chair of the Audit Committee. The Director of the Internal Audit Service reports directly to the Secretary to the Council on a day-to-day basis.

12.4 Value for money
It is a requirement of the OfS Terms and Conditions of funding that the University’s Council is responsible for delivering value for money from public funds to both the taxpayer and student. It should keep under review its arrangements for managing all the resources under its control, taking into account guidance on good practice issued from time to time by OfS, the National Audit Office, the Public Accounts Committee and other relevant bodies.
To fulfil this responsibility, the Director of Finance will develop and revise each year a report on value for money work that will provide evidence of compliance with the OfS requirements. It will be used to enable the Audit Committee to report on value for money arrangements in their annual report to the Council.

12.5 Other Auditors
The University may, from time to time, be subject to audit or investigation by external bodies such as OfS, the National Audit Office, the European Court of Auditors, and HM Revenue and Customs. They have the same rights of access as external and internal auditors.

13 Treasury Management

13.1 Treasury management policy
The Strategy and Finance Committee is responsible for approving a Treasury Management Policy setting out a strategy and policies for cash management, long-term investments and borrowings. This will require compliance with any external constraints or rules regarding approval for any secured or unsecured loans that go beyond the general consent levels set out in the Terms and Conditions of Funding with OfS. The Scrutiny and Finance Committee has a responsibility to ensure implementation, monitoring and review of such policies.

13.2 Banking arrangements
The University’s banking arrangements shall be decided by the Council on the advice of the Scrutiny and Finance Committee from time to time. All arrangements with the University’s bankers concerning the University’s bank accounts, and those of its subsidiaries, and the issue of cheques shall be made by the Vice Chancellor and Director of Finance on behalf of the Scrutiny and Finance Committee.

The Vice Chancellor and Director of Finance are empowered to open and close bank accounts in the name of the University or its subsidiaries and branches. No other part of the University shall be empowered to open or operate a bank account in the name of the University or its subsidiaries and branches and all cheques or financial instruments made payable to the University shall be credited to the University’s account.

Arrangements for the signature and countersignature on University cheques, the authorisation of electronic banking transactions and the arrangements for bank account reconciliations are set out in the University’s Financial Manual.

13.3 Borrowing & covenants
All requests for the University or its subsidiaries to issue formal guarantees, letters of support or performance bonds in favor of third parties must be approved by Council. Council must also approve all requests for the setting up of any spin-out companies, new subsidiaries or joint ventures as these decisions could conflict with existing agreements and financial covenants with our lenders.

All arrangements for exercising the borrowing powers of the Council, as defined in the Charter and Ordinances, shall be made by the Scrutiny and Finance Committee.

13.4 Investments
No investments may be made in securities, limited or public companies, or other investment property (including land and buildings) without the approval of the Investment and Development Committee. The Investment and Development Committee may seek such external advice as it considers necessary and may employ managers for the University investment funds.

14 Income

14.1 General
The Director of Finance is responsible for ensuring that appropriate procedures are in operation to enable the University to receive all income to which it is entitled.

All receipt forms, invoices, tickets or other official documents must have the prior approval of the Director of Finance.

Arrangements for the prompt collection, security and banking of all funds received shall be made under the direction of the Director of Finance.

14.2 Receipt of cash, cheques and other negotiable instruments
All monies received must be banked promptly, and in accordance with a timetable prescribed by the Director of Finance and set out in financial procedures. The custody and transit of all monies received must comply with the requirements of the University’s insurers.

All sums received must be paid in and accounted for in full and must not be used to meet miscellaneous expenses or be paid into the petty cash floats. Personal or other cheques must not be cashed out of money received on behalf of the University.

The University does not accept cash payments for goods (with the exception of a small number of catering/ retail outlets).

14.3 Receipts by credit or debit card
The University may only receive payments by debit or credit card using procedures approved by the Director of Finance. All procedures must ensure compliance with the PCI DSS regulations.

14.4 Sales invoicing and the collection of debts
The Director of Finance shall ensure that:
• debtors’ invoices are raised promptly on official invoices, in respect of all income due to the University. The only exception to this regulation is where research council and EU grants are managed centrally, as described under 15.1
• invoices are prepared with care, recorded in the ledger, show the correct amount due and are credited to the appropriate income account
• processes are in place to perform credit checks on customers where appropriate
• any credits granted are valid, properly authorised and completely recorded
• VAT is correctly charged where appropriate, and accounted for
• monies received are posted to the correct debtors account
• swift and effective action is taken in collecting overdue debts, in accordance with the protocols noted in the financial procedures
• outstanding debts are monitored and reports prepared for management
• where appropriate and proper, debt collection costs are recovered from the debtor
All credit arrangements must be approved by the Director of Finance.

14.5 Student fees
The procedures for collecting tuition and residence fees must be approved by the Director of Finance.

14.6 Write offs
Amounts properly due to the University shall only be written off when all reasonable steps have been taken to recover the debt and all debt write offs must go through an approval process.

Tuition fee and academic related debt write off must first be approved by the Director of Student Services before being referred to the Director of Finance. All other requests to write off debts must be referred in writing to the Director of Finance. Write-offs in Trusts and Subsidiary companies must be approved by the relevant Board.

All write off proposals over £50,000 will be forwarded to the Scrutiny and Finance Committee for approval, and all write offs between £10,000 and £50,000 will be notified to Scrutiny and Finance Committee as memorandum items.

14.7 Credit notes
All credit notes over £1,000 require the prior approval of the Director of Finance, or nominated representative and all credit notes must first be approved by the Head of School or Directorate.

Under delegated authority from the Director of Finance, the Director of Student Services approves all tuition fee credits processed via the student record system.

15 Research Grants and Contracts

15.1 Acceptance of research grants and contracts
Research grants and contracts shall be accepted on behalf of the University by the Director of Finance or other duly authorised officers. Under no circumstances should applications be submitted without prior approval of the Pro Vice Chancellor Research and Innovation, through Research Services.

The Director of Research Services is responsible for examining every formal application for grant and shall ensure that there is adequate provision of resources to meet all commitments. The Director of Research Services should ensure that the full economic cost of research contracts is established. The research agreement must be in line with the University’s policy with regard to full economic costing (fEC), taking account of different procedures for the pricing of research projects depending on the nature of the funding body.

The Director of Finance shall maintain all financial records relating to awarded research grants and contracts and shall initiate all claims for reimbursement from sponsoring bodies by the due date. These claims may be in the form of cost statements and may not necessarily be recorded as a debtors invoice.

15.2 Grant and contract conditions
Many grant-awarding bodies and contracting organisations stipulate conditions under which their funding is given. In addition, there are often procedures to be followed regarding the submission of interim or final reports or the provision of other relevant information. Failure to respond to these conditions often means that the University will suffer a significant financial penalty. It is the responsibility of the named supervisor or grant holder to ensure that conditions of funding are met.

Any loss to the University resulting from a failure to meet conditions of funding is the responsibility of the budget holder and will be charged to the relevant School or Directorate.

16 Other Income-Generating Activity

16.1 Ongoing Sales of Products Services
This is a generic term to capture all activity under which a School or Directorate provides products and services to third parties outside the University.

Items within this category will be governed by a contract, either on terms and conditions prepared by the University or proposed by a customer. Advice should be sought from Legal Services concerning the correct form of contract to be used.

Any income generated through ongoing sales of products and services up to £100k can be approved by the Head of School or Directorate. UEB members can approve up to £300k. Any sales of product over £300k must be approved by the Vice Chanceller or Director of Finance.

The Guide to Sales invoicing outlines processes for credit checking and credit limiting customers where appropriate:


16.2 New income generating or trading activity
Heads of School must approve, in advance, of any new discrete income-generating activity which would generate income up to £50,000. UEB members can approve any income up to £100k. Any amount in excess of this should be agreed with the Director of Finance.

Any new income generating activity should be discussed with Finance Business Partners and advice taken from the tax team before commencement.

The Director of Finance may direct those transactions be undertaken through a suitable subsidiary company.

16.3 Private consultancies and other private work
The regulations governing private work undertaken by University staff are set out, where necessary, in the appropriate conditions of service and within the University’s Consultancy Policy.

The main provision in the regulations is that staff undertaking private work must ensure that it does not impair the performance of their University duties. Staff must not hold themselves out as acting on behalf of the University, or use University headed stationery.

The permission of the Head of School or Directorate and of the Deputy Vice-Chancellor is required for any private work whether or not it involves the use of University resources. If it does involve the use of University resources an economic charge will be made for these.

The University accepts no responsibility for any work done, advice given or activity undertaken by staff in their private capacity.

17 Intellectual Property Rights and Patents

17.1 General
Certain activities undertaken within the University including research and consultancy may give rise to ideas, designs and inventions which may be patentable. These are collectively known as intellectual property. From time to time this may be assigned under a signed agreement in full or part to third parties.

17.2 Patents
The Scrutiny and Finance Committee is responsible for establishing procedures to deal with any patents accruing to the institution from inventions and discoveries made by staff in the course of their research.

17.3 Intellectual property rights
In the event of the University deciding to become involved in the commercial exploitation of inventions and research, the matter should then proceed in accordance with the intellectual property procedures contained within the University’s Code of Practice on Intellectual Property.

17.4 Commercial exploitation of Intellectual property
The Scrutiny and Finance Committee shall approve procedures to encourage and assist staff to maximise the commercial exploitation of inventions and procedures resulting from research within the University.

17.5 Disposals of Intellectual Property
All disposals of intangible assets will require the prior approval of the Scrutiny and Finance Committee, on the advice of the Director of Finance. In this context assignments of Intellectual property do not classify as a disposal.

18 Expenditure and Purchasing

18.1 General
The Director of Finance is responsible for making payments to suppliers of goods and services to the institution.

18.2 Scheme of delegation/financial authorities
The Head of School or Directorate is responsible for purchases within his or her area of responsibility. The Head of School or Service may delegate up to 25% of his or her purchasing authority to named individuals within the School or Service. In exercising this delegated authority, Budget Holders are required to observe the University’s procurement policies and financial procedures.

Each year, Heads of School and Directorate will approve a Delegation of Authority letter and the Director of Finance shall ensure core financial systems are updated accordingly for any changes.

Staff are not permitted to authorise any payment to themselves, their spouses, partners or relatives, or any organisation with which they, their family or relatives have a connection or permit any member of their staff to do so.

18.3 Procurement
The University requires all budget holders, irrespective of the source of funds, to obtain supplies, equipment and services at the lowest possible cost consistent with quality, delivery requirements and sustainability, and in accordance with theUniversity’s Procurement Policy and Procedures.

Heads of Schools and Directorate should ensure that budget holders are aware of the University’s Procurement Policy, which is available on the Procurement Department’s website.

The Director of Procurement shall be responsible for arrangements and procedures for all official orders issued for supplies of services required by the University.

All orders may be placed only if they are in compliance with the requirements of the Director of Procurement and the tendering procedures have been carried out, if required.

18.4 Capital Expenditure
All capital expenditure on land, buildings, furniture, equipment and associated costs must only be incurred if it is part of an approved budget and detailed financial procedures for such financial transactions are followed.

The Director of Finance shall be responsible for providing annual statements relating to all capital expenditure to the Scrutiny and Finance Committee.

See 10.7 for further information on delegations of authority.

18.5 Purchasing Cards
The operation and control of the University’s purchasing cards is the responsibility of the Director of Finance.

Holders of purchasing cards must use them only for the purposes for which they have been issued and within the authorised purchase limits. Cards must not be loaned to another person, nor should they be used for personal or private purchases. Cardholders should obtain approval to purchase from the relevant budget holder and should ensure that there is sufficient budget available to meet the costs. The Director of Finance shall determine what information is required on purchases made with purchasing cards from cardholders and deadlines for receipt in Finance to enable financial control to be maintained and cardholders must provide that information.

Details of the operation of the scheme are set out in the University’s Financial Manual.

18.6 Payment of invoices
The procedures for making all payments shall be in a form specified by the Director of Finance.

Heads of Schools and Directorate are responsible for ensuring that expenditure within their Schools and Directorate does not exceed agreed budgets without prior approval from the Director of Finance.

The Director of Finance will automatically pay invoices that quote a valid purchase order number and have been duly receipted and matched in the purchase to pay system

18.7 Reimbursement of expenses
The University’s procurement and payments procedures are in place to enable the majority of non-pay supplies to be purchased through the purchase to pay system or via purchasing cards without anyone having to incur any personal expense. However on occasion, staff, students or visitors may incur expenses, most often in relation to travel, and are entitled to reimbursement.

Such expenditure must be claimed using the University’s core finance system (for staff) or through the expense claim form (visitors and students), and the claim must be in accordance with the University’s Expenses and Hospitability and Procurement policies.

Anyone using their own vehicles on behalf of the University shall maintain appropriate insurance cover for business use and a full valid license.

18.8 Advances
Advances may be given to staff and students for projects carried out away from the University. Other forms of payment will be expected to be used wherever possible, such as an official purchase order and subsequent payment, or purchasing card.

The amount advanced to one person should not normally exceed £5,000. Advances must always be approved in advance by the Head of School or Directorate. Any advances in excess of £2,000 must also be approved in advance by the Director of Finance.

Receipts or paid invoices must be retained for all sums expended in this way. Within one month of completion of the project to which the advance relates an expense claim form giving a final account must be prepared to demonstrate how the advance was disbursed and any unspent balance repaid. Under no circumstances will a second advance be approved when the final accounting for an earlier advance is outstanding.

18.9 Giving hospitality
Staff entertaining guests from outside bodies should normally use the University’s catering facilities. Where this is not the case, reasons must be stated when submitting a claim for reimbursement.
The limits concerning acceptable expenditure for entertaining guests are set out in the Expenses and Hospitality Policy.

18.10 Making donations
Donations (in either cash or kind) must not be made without the prior approval of the Director of Finance.

19 Pay Expenditure

19.1 Remuneration policy
All institution staff will be appointed to the salary scales or spot salary approved by the Council and in accordance with appropriate conditions of service.

All letters of appointment or variations in conditions of service must be issued by the Director of Human Resources through the HR Operations Team.

All payments of salaries must be made through the HR Operations Team, except where staff are employed by one of the University’s overseas subsidiaries or established branches, when payment will be made through an approved payroll bureau.

Salaries and other benefits for senior management will be determined by the People and Remuneration Committee. In addition, the People and Remuneration Committee is responsible for approving all severance payments for senior staff and those in excess of £90,000. Lay members of Council will have their reasonable travelling expenses reimbursed by the University.

19.2 Appointment of staff
All contracts of service shall be concluded in accordance with the University’s approved personnel practices and procedures.
All centrally funded academic posts and professorial posts, however funded, are subject to approval by the Deputy Vice-Chancellor.
Budget Holders shall ensure that the Director of Finance and the Director of Human Resources are provided promptly with all information they may require in connection with the appointment, resignation or dismissal of employees.

19.3 Superannuation schemes
The eligibility of staff for membership of the Universities Superannuation Scheme (USS), the University of Reading Employees Pension Fund (UREPF) or the University of Reading Pension Scheme (URPS) will be detailed in individual contracts of employment.

The Strategy and Finance Committee shall be responsible for undertaking the Council’s role as employer in relation to all superannuation matters.

The Director of Human Resources is responsible for day-to-day superannuation matters, including:

• agreed contributions to various authorised superannuation schemes
• preparing the annual return to various superannuation schemes
• administering the University of Reading Employees Pension Fund and the University of Reading Pension Scheme.

20 Assets

20.1 Land and buildings

Please see section 10.7.

20.2 Fixed asset register
The Director of Finance is responsible for maintaining the University’s register of land, buildings, fixed plant and machinery and other assets costing over £10,000. Heads of School and Directorate will provide the Director of Finance with any information required to maintain the register.

Subsidiary companies will also be required to maintain fixed asset registers using capitalisation thresholds separately approved by the Director of Finance.

20.3 Inventories
The Procurement Function, in conjunction with the Digital Technology Services (DTS), will maintain an inventory of IT equipment.

20.4 Stocks and stores
Heads of School and Directorate are responsible for establishing adequate arrangements for the custody and control of stocks and stores within their Schools and Directorate. The systems used for stores accounting must have the approval of the Director of Finance.

Heads of School and Directorate are responsible for ensuring that regular inspections and stock checks are carried out. Stocks and stores of a hazardous nature should be subject to appropriate security checks.

Those Heads of School and Directorate whose stocks require valuation in the University’s balance sheet at the financial year end must ensure that the stock-taking procedures in place have the approval of the Director of Finance and that instructions to appropriate staff within their Schools are issued in accordance with advice contained in the University’s detailed financial procedures.

20.5 Safeguarding assets
Heads of School or Directorate are responsible for the care, custody and security of the buildings, stock, stores, furniture, cash, etc. under their control. They will consult the Director of Estates in any case where security is thought to be defective or where it is considered that special security arrangements may be needed.

No property should be removed from University premises without prior permission of the Head of School or Directorate.

20.6 Personal use
Assets owned or leased by the University shall not be subject to personal use.

20.7 University owned vehicles
University owned vehicles may only be used by authorised personnel on University business. They should not normally be used for travel to and from work and they should be left on University premises overnight.

20.8 Asset disposal
Disposal of inventory items must be in accordance with the procedures issued by the Director of Procurement.

Disposal of fixed assets and their removal from the fixed asset register must be in accordance with the University’s Fixed Asset Accounting Policy.

Any disposal of operational land or buildings and investment property must be approved by the Scrutiny
and Finance Committee.

20.9 All other assets
Heads of School and Directorate are responsible for establishing adequate arrangements for the custody and control of all other assets owned by the University, whether tangible (such as stocks or inventoried items) or intangible (such as intellectual property), including electronic data.

20.10 Loss of assets or damage to property
Heads of Schools or Directorate must advise the Procurement Function immediately of any event that may give rise to an insurance claim. Procurement will notify the University’s insurers and, if appropriate, prepare a claim in conjunction with the Head of School or Service for transmission to the insurers.

20.11 Leasing property
All lease agreements or licenses for third parties to occupy University property shall be signed by the Director of Finance or the Director of Estates.

21 Funds held on Trust

21.1 Gifts, benefactions and donations
The Director of Finance is responsible for maintaining financial records in respect of gifts, benefactions and donations made to the University and initiating claims for recovery of tax where appropriate.

21.2 Student Welfare and Access Funds
The Director of Finance will prescribe the format for recording the use of student welfare funds. Records of Access Funds will be maintained according to funding body requirements.

21.3 Trust funds
The Scrutiny and Finance Committee is responsible for ensuring that all the University’s trust funds are operated within any relevant legislation and the specific requirements for each Trust.

The Director of Finance is responsible for maintaining a record of the requirements for each trust fund and for advising the Scrutiny and Finance Committee on the control of Trust assets.

22 Other

22.1 Insurance
The Director of Procurement is responsible for the University’s insurance arrangements, including the provision of advice on the types of cover available. As part of the overall risk management strategy all risks will have been considered and those most effectively dealt with by insurance cover will have been identified. This is likely to include important potential liabilities and provide sufficient cover to meet any potential risk to all assets.

Procurement is responsible for effecting such insurances as are determined from time to time by the Scrutiny and Finance Committee. Therefore responsible for obtaining quotes, negotiating claims and maintaining the necessary records. Procurement will keep a register of all insurances effected by the University and the property and risks covered. It will also deal with the University’s insurers and advisers about specific insurance problems.

The Director of Estates is responsible for keeping suitable records of plant which is subject to an inspection by an insurance company and for ensuring that inspection is carried out in the periods prescribed.

Heads of Schools and Directorate must ensure that any agreements negotiated within their School or Directorate with external bodies cover any legal liabilities to which the University may be exposed. The Insurance Office advice should be sought to ensure that this is the case.

Heads of Schools or Directorate are responsible for ensuring that the Insurance Office is immediately notified of any potential new risks and additional property and equipment that may require insurance and of any alterations affecting existing risks.

22.2 Travel Insurance
Staff and students travelling on University business is covered under the University’s travel insurance policy, and will not normally be reimbursed for any expenditure on a personal travel insurance policy. Travelers should however check the policy details on the Insurance website to ensure the University’s policy offers an appropriate level of cover for the location, activities planned and for any personal possessions taken on each trip.

22.3 Establishing new companies, branches or associates.
No University company, associate or branch shall be formed for any purpose without the specific approval of the Scrutiny and Finance Committee.

22.4 Appointments to the Boards of subsidiary and associated companies
Where a University subsidiary company is established or the University takes a shareholding in a third-party company, the appointment of directors to these companies is a matter for the Scrutiny and Finance Committee.

22.5 Memoranda of understanding with subsidiary companies
University subsidiary companies shall enter into and keep under review a memorandum of understanding with the University. Each company shall operate in accordance with such memorandum and within the framework provided by these Financial Regulations, and any additional procedural requirement imposed by their Boards of Directors.

Any permitted departures from these Financial Regulations will be encompassed in the memorandum of understanding.

22.6 Associated company reporting requirements
The directors of companies where the University is the majority shareholder must submit, via the Scrutiny and Finance Committee, an annual report to Council. They will also submit business plans or budgets as requested to enable the Committee to assess the risk to the University. The University’s internal and external auditors shall also be appointed to such companies.

22.7 Security over data and information
The Director of Digital Technology Services shall be responsible for maintaining proper security and privacy of digital information held by the University. Appropriate levels of security will be provided, such as passwords for networked PCs, together with restricted physical access for network servers. Information relating to individuals held will be subject to the provisions of the General Data Protection Regulations (GDPR) 2016 and the Data Protection Act 2018. The University shall have in place a Data Protection Policy to ensure compliance and to ensure the safety of records and documents.

The University Secretary shall have responsibility for implementing and monitoring policies for the protection and management of data.

22.8 Safeguarding funds against misuse
Heads of School and Directorate are responsible for the proper application of funds at the disposal of their School or Directorate. In exercising their responsibility Heads of School and Directorate must have regard to security measures to safeguard University funds and assets against misuse or misappropriation. They must consult with Procurement to see that appropriate insurance is arranged.

22.9 Fraud Policy and Response Plan
The University’s Fraud Policy and Fraud Response Plan are contained within the Financial Manual, availableon the University’s website.

All members of the University staff or students must notify immediately the University Secretary or the Head of Internal Audit Services of any financial irregularity, or any circumstance suggesting the possibility of irregularity, affecting the financial procedures, cash, stores or other property of the University. Due respect will be given for the confidentiality of those raising such concerns.

It is a disciplinary matter if anyone knowingly makes a false or malicious allegation against another member of the University.

Further information about “whistleblowing” and the duty of employees and students under the Public Interest Disclosure Act 1998 can be found on the University’s website.

22.10 Safekeeping of legal documents
The University Secretary has responsibility for the safekeeping of legal documents relating to the University. Details of the University’s property ownership is maintained by the Director of Estates.

22.11 Students’ Union
The financial responsibilities of the Students’ Union are set out in the Students’ Union Code of Practice in the Calendar.

The Students’ Union is a separate legal entity from the University. It shall maintain its own bank account and financial records and prepare its own annual accounts.

Subject to any constraints imposed by the OfS, the Scrutiny and Finance Committee shall determine the level of grant to be paid annually to the Students’ Union. The Committee requires the Union to provide information details of its proposed budget to assist in determining the appropriate level of grant.

The Director of Finance and the Head of Internal Audit Services have the right of access to the financial records of the Students’ Union in so far as they relate to the payment by the University of the annual Block Grant.

22.12 Signing of official documents
The Council shall approve arrangements for the delegation to senior officers of the University to sign official documents on its behalf

22.13 Use of the University Seal
All Deeds and documents requiring to be sealed by the University shall be sealed in the presence of two persons one of whom shall be a member of the Council and the other an authorised officer.

A report shall be submitted to each meeting of the Council recording the Deeds and documents to which the University Seal has been affixed since the last meeting of the Council.

The University Secretary shall be responsible for the security and use of the University Seal and shall keep records of the Seal’s use.

22.14 Provision of indemnities and guarantees
Any member of staff asked to give an indemnity or guarantee, for whatever purpose, should consult a member of UEB before any such indemnity is given. Members of UEB can sign an indemnity and any member of staff with delegation can sign one if it is on a preapproved terms using University templates. Uncapped indemnities should be approved by the Director of Finance.

Guarantees must be approved by the Director of Finance, Scrutiny & Finance Committee and Council.

22.15 Disclosure of Interests
A member of Council, or a member of staff, having a material, personal, financial or other beneficial interest in any transaction between the University and third parties shall disclose his or her interest in writing in advance of any discussion or decision regarding that transaction. In the case of a member of the Council the disclosure should be made to the University Secretary and, in the case of a member of staff, to their Head of School or Directorate.

Any member of any Committee, having a personal interest in any matters (whether or not recorded in the Register of Interests) shall declare that interest, and such declaration shall be recorded. The member shall withdraw from the meeting in question unless this requirement is waived by the Chairperson.

22.16 Disclosure of outside directorships and partnerships
Any member of Council or member of staff who is about to accept a new directorship or partnership which may result in a conflict of interest, should discuss this in advance with the Secretary to the Council.