Creator / Director of Finance
Approved By / Court
Approval Date(s) / Amended November 2016
Review By / June 2016
Version / 2016-1
Document Type / Regulation
Activity/Task / University governance / Financial compliance
Retention Schedule
Document Location
Keywords / Accounting; treasury; finance
Version Control Table
Version number / Purpose / Changes / Author / Date2013-1 / Updated for changes to Sections 7.3/ 10 /18.1 / 19.3 / 19.5/ 19.9. / Deputy Head of Finance / 3 Oct 2013
2013-1A / Approved by Court / Head of Finance / 16 Oct 2013
2014-1 / Draft for Court / Deputy Head of Finance / 10 Jun 2014
2014-2 / Approved by Court / Deputy Head of Finance / 18 Jun 2014
2014-3 / Draft for Court / Deputy Head of Finance / 3 Dec 2014
2014-4 / Approved by Court / Deputy Head of Finance / 17 Dec 2014
2015-1 / Draft for Court – updated for proposed changes to Sections 16.4/ 19.9.1/ 19.11 / Deputy Head of Finance / 13 Apr 2015
2015-2 / Approved by Court / Deputy Head of Finance / 17 Jun 2015
2016-1 / Updated for changes to Section 19.2, 19.3 / Director of Finance / November 2016
INDEX
ATERMINOLOGY
BGENERAL PROVISIONS
1Background
2Status of Financial Regulations
2.1Purpose of Financial Regulations
2.2Duty of Compliance with Financial Regulations
CCORPORATE GOVERNANCE
3Authority of University Court in respect of these Regulations
4University Court – Financial Responsibilities
5Designated (or ‘Accountable’) Officer
6Committee Structure
6.1Finance and Corporate Performance Committee
6.2Audit Committee
6.3Remuneration Committee
7Others with Financial Responsibility
7.1The Director of Finance
7.2Heads of School/Service
7.3All members of staff
8Risk Management
9Whistleblowing
10Code of Conduct
10.1Bribery Act 2010 – Gifts/Rewards/Hospitality
DFINANCIAL MANAGEMENT AND CONTROL
11Financial Planning
11.1Financial Forecasts/ Budgeting
11.2Capital Expenditure
12Financial Control
12.1Budget Holder - Responsibilities
12.2Budget Review
12.3Virement Rules
13Accounting Arrangements
13.1Year End Responsibilities
13.2Retention of Financial Documents
13.3Statutory Responsibilities
14Audit
14.1General
14.2External Audit
14.3Internal Audit
14.4Value for money
14.5Other auditors
15Treasury Management
15.1Banking Arrangements and Borrowing Powers
15.2Borrowing
15.3Investments
16Income
16.1Maximisation of income
16.2Receipt of cash, cheques and other negotiable instruments
16.3Collection of debts
16.4Student Fees
17Research Grant and Contracts
17.1Responsibility of Head of School/Service
17.2Responsibility of Director of Finance
18Other income-generating activity
18.1Commercial activity/Consultancy
18.2Private consultancy
18.3Off-site collaborative provision
18.4European Union and other matched funding
18.5Intellectual Property
18.6Other income
19Expenditure
19.1Scheme of Delegation
19.2Procurement
19.3Tenders and quotations
19.4Purchase orders
19.5Purchasing cards
19.6Building contracts
19.7Receipt of goods
19.8Payment of invoices
19.8.1Manual Purchase Orders
19.8.2Computerised / Electronic Purchase Orders
19.9Staff reimbursement of Travel and Subsistence costs
19.9.1Advance of Expenses
19.9.2Claims for Reimbursement
19.10Goods and Services for Budget Holders
19.11Petty cash
19.12Payments to students
19.13Late payment rules
19.14Hospitality
19.15Payments to Consultants
20Pay Expenditure
20.1Remuneration policy
20.2Appointment of staff
20.3Salaries
20.4Superannuation schemes
20.5Allowances for members of the University Court
20.6Severance and other non-recurring payments
20.7Salary Advances / Loans to staff or students
21Property and Assets
21.1Property
21.2Equipment
21.3Stocks and stores
21.4Vehicles
21.5Security
21.6Personal use
21.7Asset disposal
22Endowment and Trust Funds
23Insurances
24Subsidiary Entities
25Students’ Association
26Corruption and Fraud
APPENDIX 1 – Remit of Finance and Corporate Performance Committee
APPENDIX 2 – Remit of Audit Committee
APPENDIX 3 – Remit of Remuneration Committee
APPENDIX 4 - THE SEVEN PRINCIPLES OF PUBLIC LIFE
APPENDIX 5 – SCHEME OF DELEGATION
A Authority reserved to Court
B Authority to approve delegated to Court committees
C Authority to approve delegated to the Principal
D Authority to approve delegated to Senate and its committees
E Delegated authority with regard to financial transactions
APPENDIX 6 – COMMITTEE STRUCTURES
Court
ATERMINOLOGY
In these Regulations the following references shall bear the following meanings:
"Financial Memorandum" shall mean the Financial Memorandum entered into between the Scottish Further & Higher Education Funding Council (Scottish Funding Council) and Abertay University in force for the time being.
"Order of Council" shall mean The University of Abertay Dundee (Scotland) Order of Council 1994.
“Governing body” shall mean the Court of Abertay University.
"Head(s) of School/Service" shall mean the Principal and Vice-Chancellor, Vice-Principal and Deputy Vice-Chancellor, University Secretary, Heads of Schools or Services and other Senior Managers.
"The Regulations" shall mean these Financial Regulations.
"The Funding Council" shall mean the Scottish Further & Higher Education Funding Council.
"Standing Orders" shall mean the standing orders approved by the University Court for the conduct of its business and the management of its affairs.
"University" shall mean Abertay University.
"University Court" shall mean the Court of Abertay University.
Throughout these Regulations gender references shall apply equally to male and female.
BGENERAL PROVISIONS
1Background
The University is a higher education institution created under the provisions of the Further and Higher Education (Scotland) Act 1992. Its structure of governance is laid down in the statutory instrument - The University of Abertay Dundee (Scotland) Order of Council 1994. The Order can only be amended by primary legislation and the articles of government by the Privy Council.
The University is registered with the Office of the Scottish Charity Regulator (SC016040).
The Financial Memorandum between the Funding Council and the University sets out the terms and conditions on which grant is made. The governing body (University Court) is responsible for ensuring that conditions of grant are met. The Financial Regulations of the University form part of this overall system of accountability.
2Status of Financial Regulations
This document sets out the University’s Financial Regulations. It translates into practical guidance the University’s broad policies relating to financial control.
This document was approved by Court on 17June 2015 and updated in October 2016. It applies to the University and all of the University’s wholly-owned subsidiary entities.
These Financial Regulations are subordinate to the University’s Order of Council and to any restrictions contained within the University’s Financial Memorandum with the Funding Council.
2.1Purpose of Financial Regulations
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 objects (see paragraph 4 (1) of the Order of Council) and of the University’s strategic plan and business objectives while:
- ensuring financial viability
- achieving value for money
- 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; and
- safeguarding the assets of the University.
2.2Duty of Compliance with Financial Regulations
Compliance with the Financial Regulations is compulsory for all staff connected with the University. A member of staff who fails to comply with the Financial Regulations may be subject to disciplinary action under the terms of the University’s Staff Disciplinary Procedure. University Court will be notified of any such breach through the Audit Committee. It is the responsibility of Heads of School/Service to ensure that staff are made aware of the existence and content of the University’s Financial Regulations.
The Finance and Corporate Performance Committee (FCPC) is responsible for maintaining a continuous review of these Financial Regulations, through the Director of Finance, and for advising University Court of any additions or changes necessary.
In exceptional circumstances, FCPC may authorise a departure from the detailed provisions herein, such departure to be reported to the University Court at the earliest opportunity.
The University’s detailed financial procedures set out how these Regulations will be implemented and are contained in separate documents available via the Finance intranet site.
CCORPORATE GOVERNANCE
3Authority of University Court in respect of these Regulations
The authority for (a) these Regulations, and (b) the Standing Orders shall be the University Court, which shall have sole responsibility for interpreting any of the matters set out herein or for approving any amendments to the said Standing Orders or to these Regulations.
The University Court may act through its Chairman's Committee and references to actings by the "University Court" imply actings by the Chairman's Committee as a surrogate for the University Court.
For the avoidance of doubt, where matters are referred to in these Regulations and in the Standing Orders, in cases of dispute the Standing Orders shall rule; but where matters appear only in these Regulations then such matters shall carry the authority of the University Court.
4University Court – Financial Responsibilities
The University Court is responsible for making such arrangements as are appropriate and as it thinks fit for the conduct of the financial affairs of the University, subject to any conditions which may be imposed as conditions of payment of grant (section 37 of the Order of Council refers). The scheme of delegation is provided in Appendix 5.
The primary financial responsibilities of the University Court* are to:
- approve a financial strategy, long-term business plans and annual budgets, ensuring that these meet the interests of stakeholders and reflect the University’s strategic plan
- establish and monitor systems of control and accountability throughout the University, including financial controls
- act as the financial and business authority of the University and to ensure economical, efficient and effective delivery of services, by overseeing arrangements for internal and external audit and approving annual financial statements
- ensure the proper use of public funds awarded to the University
- observe the terms of the Financial Memorandum between the University and the Funding Council and any other conditions prescribed by the Funding Council
- act as a trustee for, or arrange for trusteeship of, any legacy, endowment or gift in support of the University’s activities
* derived from Court-approved Statement of Primary Responsibilites
5Designated (or ‘Accountable’) Officer
The Principal is the designated officer of the University and as such will be required to satisfy the University Court that there is compliance with all such conditions as may be prescribed by the Funding Council. The designated officer may be required to appear before committees of the Scottish Parliament along with the Chief Executive of the Funding Council on any matter relating to grant to the University which arises before such committees.
The designated officer is responsible for advising the University Court if at any time in his opinion any action or policy of the University Court is incompatible with the terms of the Financial Memorandum with the Funding Council. In the event of the University Court deciding nevertheless to proceed with such action or policy, the designated officer is required to inform the Chief Executive of the Funding Council in writing.
The Principal shall, together with the Chairman of University Court and the Director of Finance, be required to sign the University’s annual financial statements.
The scheme of delegation in Appendix 5C, specifically details authorities delegated to the Principal.
6Committee Structure
The University Court has ultimate responsibility for the University’s finances, but delegates specific powers and processes to the committees detailed below. These committees are accountable to the University Court. The Committee structure for both Court and Senate are provided in Appendix 6.
6.1Finance and Corporate Performance Committee
The University Court shall appoint a Finance and Corporate Performance Committee whose terms of reference and membership are as set out in Appendix 1.
The Finance and Corporate Performance Committee shall inter alia be responsible to the University Court for the overall financial arrangements of the University. The Committee will consider the financial statements for each financial year and may recommend to Court that they be approved. The Committee will also consider and report to University Court on the development, implementation and review of financial strategy, policy and procedures and also consider and report on the annual estimates of income and expenditure and all proposals for the borrowing of money.
6.2Audit Committee
The University Court shall appoint an Audit Committee whose terms of reference and membership are as set out in Appendix 2.
The Audit Committee shall be responsible to the University Court for ensuring compliance with the relevant requirements placed on the University in terms of the Financial Memorandum with the Funding Council.
The Committee has the right of access to obtain all the information it considers necessary and to consult directly with the internal and external auditors.
6.3Remuneration Committee
The University Court shall appoint a Remuneration Committee, whose terms of reference and membership are set out in Appendix 3.
The Remuneration Committee considers and determines the pay and conditions of the senior officers of the University.
7Others with Financial Responsibility
7.1The Director of Finance
The Directorof Finance shall be responsible to the Principal, in the latter’s role as designated officer, for the administration of the financial affairs of the University and for ensuring that proper financial records are kept and that adequate and effective methods and procedures for financial control are followed.
The Director of Finance shall report to the Principal and shall provide regular reports on estimates, budgets, and interim and annual financial statements.
The Director of Finance shall keep the Principal and the Audit Committee informed of (i) any material changes in the University’s procedures and controls and (ii) any instance of material failure to comply with approved procedures and controls.
The Director of Finance shall advise the Principal and the University Court and its subcommittees on relevant financial matters; and, on behalf of the Principal and as required by the Financial Memorandum, shall ensure that adequate financial and accounting arrangements are made within the University and throughout all Schools and Services.
The Director of Finance or the authorised representative shall have authority to (a) enter at all reasonable times any University premises, (b) gain access to all records, documents and correspondence relating to any financial or other transactions of the University, (c) require and receive such explanations as are, or as he deems to be, necessary concerning any matter under examination, and (d) require any employee of the University to produce money, goods or other University property under that employee’s control.
7.2Heads of School/Service
The Heads of School/Service are responsible for financial management for the areas or activities they control. They are advised by the Director of Finance in executing their financial duties. The Director of Finance will also supervise and approve the financial systems operating within their cost centres, including the form in which accounts and financial records are kept. Heads of School/Service are responsible for establishing and maintaining clear lines of responsibility within their School or Service for all financial matters. Where resources are devolved to budget holders, they are accountable to their Head of School/Service for their own budget.
Heads of School/Service will provide the Director of Finance with such information as may be required to enable (a) compilation of the University’s financial statements, (b) implementation of financial planning; and (c) implementation of audit and financial reviews, projects and value for money studies.
7.3All members of staff
All members of staff of the University and its wholly-owned subsidiary entities shall 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.
Members of staff shall ensure that they are aware of the University’s financial authority limits (see section 19.1 of these Regulations) and the values of purchases for which quotations and tenders are required (see section 19.3 of these Regulations).
They shall make available any relevant records or information to the Director of Finance or to his or her authorised representative in connection with the implementation of the University’s financial policies, these Financial Regulations and the systems of financial control.
They shall provide the Director of Finance with such financial and other information as he or she deems necessary from time to time, to carry out the requirements of the University Court.
Members of staff shall immediately notify the Director of Finance whenever any matter arises that involves, or is thought to involve, irregularities concerning, inter alia, cash or property of the University. See also section 9 of these Regulations on whistleblowing.
8Risk Management
The University acknowledges the risks inherent in its business and is committed to managing those risks. University Court, through its Audit Committee, has overall responsibility for ensuring that there is a risk management policy and associated Risk Register and that there are appropriate processes for the identification, evaluation and monitoring of individual significant risks.
9Whistleblowing
Whistleblowing in the context of the Public Interest Disclosure Act is the disclosure by an employee (or other party) about malpractice in the workplace.
The full policy and procedures for whistleblowing are set out in the University’s Public Interest Disclosure (Whistleblowing) Policy, which is available from the University’s intranet.
10Code of Conduct
The University 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 are set out in Appendix 4.
Members of the University Court are required to disclose interests in the University’s Register of Members’ Interests maintained by the University Secretary, and for ensuring that entries in the Register are kept up to date.
No member of University Court or member of staff will be a signatory to a contract on behalf of the University where he also has an interest in the activities of the other party.
10.1Bribery Act 2010 – Gifts/Rewards/Hospitality
It is an offence within the Bribery Act 2010 for members of staff to accept corruptly any gift or consideration as an inducement or reward for doing, or refraining from doing, anything in an official capacity or showing favour or disfavour to any person in an official capacity. The guiding principles to be followed by all members of staff must be:
- the conduct of individuals should not create 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 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 organisations 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 gifts, rewards or hospitality. The frequency and scale of hospitality accepted should not be significantly greater that the University would be likely to provide in return.