Financial Regulations

2.1 University policies

Information on Corporate Governance (including information on the Council and the committees of Council) can be found on the Governance and policies page. The Universitiy's policies can be found on Policies and the Publication Scheme.

• Data Protection Policy
• Anti-Bribery Policy
• Gift Acceptance Policy
• Whistleblowing Policy
   

2.2 Responsibility for Financial Matters

The University Council has the overall responsibility for the financial affairs of the University. The Vice-Chancellor and President is the University’s chief academic and administrative officer and is the designated Accountable Officer under the OfS Terms and Conditions of funding for higher education institutions between OfS and the University. Day to day responsibi ity for the financial affairs of the University is delegated to the Executive Director, Finance and Planning.

Finance Committee oversees and reviews financial matters and makes recommendations to the Council. The Treasurer is a member of Council and Finance Committee. Finance Committee recommends to Council the distribution of resources within the University on the basis of the University’s strategic plan.

In accordance with OfS requirements, the University has an Audit Committee reporting to Council. The Audit Committee provides the Council with advice on the effectiveness of financial audit, risk assessment and internal control arrangements. The Audit Committee also has a number of other objectives which include:

• To comment upon questions of control and governance, value for money and the general
  efficiency, economy and effectiveness with which aspects of the University's activity are
  undertaken, and to recommend appropriate action as necessary.
• To review management procedures including risk management and to monitor the effectiveness of systems of accounting and internal control.

The Vice Chancellor and President must report any material adverse change or event such as a significant and immediate threat to the financial position of the University, significant fraud, or impropriety or major accounting breakdown to all of the following: 

• Chair of Audit Committee
• University Treasurer  
• Chair of Council
• Internal Audit Partner
• External Audit Partner
• OfS Chief Executive

The University Executive Board is a single decision making body bringing together academic and professional services leadership, working together to make the best decisions for the University. The Board’s principal role is to ensure that resources, goals and governance meet the strategic and operational needs of the University in addition to overseeing the delivery of the core academic (education and research) activities of the University. 

Deans and the Vice-President Operations are responsible for the effective and efficient use of resources within their area of responsibility in line with their agreed strategic plan and for taking appropriate and prompt corrective action against variance from the agreed plan. 

Subsidiary companies must take all reasonable steps to generate its budgeted level of income from its activities and contain its expenditure within its allocated budget. It is the responsibility of the Directors to ensure that expenditure does not exceed the level of the annual expenditure budget. Staff must not commit the University contractually where they are not authorised to do so.

2.3 Risk management

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

Audit Committee reviews management procedures including risk management and monitors the effectiveness of systems of accounting and internal control. The University risk register is split into strategic risks and operational risks and is reported to University Executive Board, Audit Committee and Council. The principals of risk management are embedded in the University’s operation and approval procedures at all levels. Deans and the Vice-President Operations are responsible for risk management within their areas.

2.4 Conflicts of Interest Policies and procedures

The University's Conflicts of Interest Policy accords with the Seven Principles of Public Life established by the Nolan Committee, and similar policies are common in most universities and other publicly-funded bodies. The fact that the University has adopted such a Policy does not in any way cast doubt on the integrity or professionalism of the University's employees. Rather it recognises that the University wishes to give a great deal of freedom to employees to engage in external activities, but in so doing needs to put in place a mechanism to protect its employees, and itself, from reputational damage and other liabilities. 

In summary, the Conflicts of Interest Policy provides for a three-fold approach: 

• Disclose always
• Manage the conflict in most cases
• Prohibit the activity when necessary to protect the public interest or the interest of the University.

The formal process of managing individual instances of actual or potential conflicts of interest is described in detail in the Conflicts of Interest Policy.

2.5 Compliance and Whistleblowing

The University aspires to meet the expectations of legal and ethical codes for the conduct of its business, including the protection of those members of staff who consider that attention should be drawn to certain aspects of the University’s work, a practice which is commonly known as Whistleblowing.The University's Whistleblowing Policy.

A register of formally reported concerns raised under the Whistleblowing policy is reported annually to Audit Committee.

2.6 Audit

Audit activity will take account of the requirements of the OfS Audit Code of Practice and be consistent with other relevant statements of professional good practice.

External auditors are appointed by the University Council on the recommendation of Audit Committee. The Audit Committee discusses, as required, with the external auditors the nature and scope of their proposed work and also the outcome of the audit (including review of the annual external audit management letter).

Internal auditors are appointed by University Council on the recommendation of Audit Committee and provide an objective and independent appraisal of all the University's activities, financial and otherwise. They provide information to the whole organization, including the Audit Committee and all levels of management. Internal audit is not an extension of, nor a substitute for, good management, although it can have a role in advising management.

The Head of Internal Audit provides an annual written report to the Audit Committee as to the adequacy and effectiveness of governance, risk management and control, and economy, efficiency and effectiveness arrangements (value for money). This is achieved through a risk-based plan of work, agreed with management and approved by Audit Committee.

Where the University wishes the internal or external audit firm to undertake other work, approval from Audit Committee may be required. Reference must be made to Finance Policy 1 for further information.

2.7 Anti-corruption, fraud and bribery

The University is committed to conducting all of its business in an honest and ethical manner and has a zero tolerance policy towards fraud, bribery and any form of dishonesty in its transactions. Any allegation that a member of the University has acted in a manner that is illegal or inconsistent with this Policy will be treated seriously.

The University's management is responsible for the prevention and detection of fraud and other irregularities. The Executive Director, Finance & Planning is responsible for devising and implementing internal controls for this purpose. The effectiveness of these controls will be reviewed by Internal Audit.

The University’s Anti-Corruption, Fraud and Bribery Policy sets out the University’s commitment to conduct all of its business in an honest and ethical manner and can be accessed through the University Regulations and policies pages .

All employees have a responsibility to inform management if they have a suspicion of a fraud, act of bribery or other irregularity. The process which must be followed is set out within Finance Policy 2.

2.8 Anti-money laundering

Finance Policy 5 outlines how the University and employees will manage money laundering risks and comply with its legal obligations, in accordance with the Proceeds of Crime Act 2002 and Money Laundering, Terrorist Financing and Transfer of Funds (Information of the Payer) Regulations 2017 and its amendments in 2019. It aims to ensure that the University and its employees comply with the legislation, and that the highest standards of due diligence are applied.

2.9 Criminal Finances Act

The Criminal Finances Act 2017 introduced a new corporate criminal offence of failure to prevent the facilitation of tax evasion. The University is criminally liable where we fail to prevent those who act for, or on our behalf, from criminally facilitating tax evasion. Further details are set out in Finance Policy 24.

2.10 Use of the University Seal

Any contract or other document required by law to be made under seal shall be validly executed if it is sealed with the Common Seal of the University and signed by the following persons in whose presence the Seal is affixed:
One member of the Council of the University and;
The Vice-President Operations, or the Executive Director, Finance & Planning, or the Academic Registrar or the Director of Legal Services.

2.11 Guarantees and indemnities

No guarantee or letter of comfort or support will be issued other than as approved by the Executive Director, Finance & Planning within limits approved by Finance Committee.

Any member of staff asked to give an indemnity, for whatever purpose, will refer the request to the Executive Director, Finance and Planning.

3.1 Financial Planning, Approval and Monitoring

As part of the Annual Assurance Return to OfS, the University is required to prepare each year a five year consolidated Financial Plan (including cash flow forecasts and projected year-end balance sheets). This Financial Plan is presented to Finance Committee and Council for approval and subsequent submission to OfS. 

The Financial Plan must be consistent with the University Strategy and Capital Programme approved by Council. The financial plan should set appropriate benchmarks and performance indicators, show how resources are to be used and how activities and infrastructure will be financed. 

Annual budgets are presented to Finance Committee and Council for approval, any major revisions due to fluctuations in student numbers are presented to Finance Committee and Council for approval in autumn and revised budgets agreed. The Executive Director, Finance and Planning will provide a regular management accounts pack to University Executive Board, Finance Committee and Council highlighting any major variances from budget. 

It is the responsibility of Deans and the Vice-President Operations to ensure that budget holders within their areas are aware of their responsibilities for budget management when committing the University to expenditure. Guidance relating to financial approval and financial monitoring is set out within Finance Policy 3.

3.2 Accounting arrangements

University Council is responsible for ensuring that proper accounting records are kept which disclose with reasonable accuracy at any time the financial position of the University. The Executive Director, Finance and Planning is responsible for the day to day management and integrity of the information held within the Finance system. 

The consolidated Financial Statements are prepared in accordance with the Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102) and with the Statement of Recommended Practice (SORP) Accounting for Further and Higher Education, subject to any specific requirements of the OfS.

The University’s Principal Accounting Policies are approved by Finance Committee and Audit Committee and are set out in Finance Policy 21. The University’s financial year runs from 1 August to 31 July. The University’s Financial Statements.

4.1 Student fees

Recommendations on the level of all regulated tuition fees are made to Council for approval by Finance Committee. Non-regulated tuition fees, discounts and deposits are recommended by UEB to Finance Committee for approval. Tuition fees must be set for all credit bearing courses. It is the responsibility of the Executive Director, Finance and Planning to ensure all fees are accurately recorded and billed.

Student fees for non-credit bearing courses are set by Faculties/Professional Services and must be
approved by the Head of Faculty/Professional Services Finance. Other administrative fees such as
examination and transcript fees are set by the Academic Registrar.

The general regulations setting out the collection of student fees, charges and expenses are set out under Student Regulations

Students in debt to the University are subject to a formal debt collection process including referral to the University’s solicitors for legal action in appropriate cases. No person shall be awarded a degree, diploma or certificate unless he or she has paid the Tuition fees prescribed and due to the University (Ordinance 7.4). If payment of Tuition Fees is not received in accordance with the fees policy, the students concerned will be liable to termination of their programme. Students may also be refused examination in accordance with Ordinance 7.3.6.

Further information on the arrangements for student fees is set out within Finance Policy 6.

4.2 Income

The Executive Director, Finance and Planning is responsible for the prompt collection, security and banking of all income received. 

The Executive Director, Finance and Planning is responsible for the prompt collection of all debts due to the University. All Sales Invoices and Credit Notes must be raised on the University’s financial system and approved by the relevant Head of Faculty/Professional Services Finance.

Further details are set out within Finance Policy 7.

4.3 Gifts and donations

The University must comply with charity law and fundraising regulations with regards to the solicitation, receipt and expenditure of funds. Finance Committee consider the acceptance of gifts, donations, endowments and legacies made to the University. 

Fundraising activity for the University must only be undertaken with the approval of, and under the guidance of, the Director of the Office of Development and Alumni Relations (ODAR) who will consult the Executive Director, Finance and Planning on the appropriate accounting treatment for the income.

Gifts must comply with the Gift Acceptance Policy which can be accessed through the University Publication Scheme page. 

The Finance, Planning and Analytics Department, working closely with ODAR, is responsible for maintaining financial records of gifts, benefactions and donations, advising on the conditions of their use, and initiating claims for recovery of tax where appropriate. 

The University does not permit donations to be made from its own funds to other charities.

Further details are set out in Finance Policy 8.

4.4 Research grants and contracts

The Executive Director, Finance and Planning is responsible for the financial administration of all research grants and contracts. The Finance, Planning and Analytics Department provide pre-award support for research grant proposals and contract proposals, and also post-award support on the successful research grants and contracts awarded to the University. The Executive Director, Finance and Planning is responsible for ensuring all research applications are appropriately costed and institutional support is affordable and within financial budgets and forecasts. All applications to funders, research award acceptances and research contracts are approved and submitted by Finance, Planning and Analytics once approvals have been
obtained as set out in Finance Policy 12.

Deans/ Vice-President Operations are responsible for ensuring that all research work carried out by the University complies with the Charities Act and furthers the charitable purpose of the University. All staff involved in research must be aware of the Objects of the University as contained in the University Charters and Statutes, Section 3. All research must comply with the Frascati definition of research.

Research must only be undertaken if the research is for the public benefit with any private benefit being incidental. For private benefit to be incidental the research must be necessary (either in furthering the University’s Objects or as a consequence of doing so), reasonable and in the interests of the University. Private benefits will be incidental if the research directly contributes towards achieving the University’s aims and/or are a necessary result or by-product of carrying out those aims.

Approval for research will only be given if the University’s interests are protected. Any conflicts of interest must be considered. Therefore all research agreements with third parties must be made in the context of ensuring that the project and the terms and conditions comply with the Charities Act.

The University recognises the importance of undertaking activities with responsibility and integrity and is strongly committed to fulfilling the principle of the Concordat to Support Research Integrity.

Further details are set out in Finance Policy 12.

4.5 Commercial and trading income (non-research)

All non-research work and new business ventures or initiatives, enterprise and trading activity are governed by Finance Policy 10. No bids must be submitted or commitment entered into before the completion of approval set out in this policy. 

All non-research work and new business ventures or initiatives, enterprise and trading activity must be costed on a full cost basis. Where public funds are used to subsidise non-public activities, the element of State Aid must be recorded by the Head of Faculty/Professional Services Finance.

Deans/ Vice-President Operations are responsible for ensuring proper financial control, monitoring of expenditure, preparing information for claims and compliance with the terms of the funder. The Faculty/Professional Services Finance team will provide pricing, costing, and accounting support and must raise all invoices and grant claims.

Before submission of any tender/quote or proposal, the relevant Faculty/Professional Services Finance team will check the costings, ensure compliance with University’s rules and policies, and ensure appropriate approval has been obtained prior to arranging any signatures required.

Staff authorised to sign non-research tenders/quotes/proposals and contracts are set out in Finance Policy10.

4.6 Consultancy, private work and other appointments

The University is an enterprising organisation and seeks to release the talents of our staff and students for the benefit of the economy and society as a whole. The University’s Consultancy Policy sets out the eligibility of academic staff to offer their services on a consultancy basis.

In considering whether or not permission will be given for consulting activity the Dean/ Vice-President Operations will take into account such factors as the compatibility of the activity with the responsibilities and commitments of the staff member, potential conflicts of interest, the use of university resources and alignment with the University’s Enterprise Strategy.
The activity may be undertaken individually as private work in which case there is no link to the University and no use of University facilities. Alternatively, the activity can be contractually provided by the University.

Finance Policy 9 sets out the financial approval required prior to any approval by Deans/ Vice-President Operations of any University Consultancy. It also sets out the authorised signatories for any contracts with external bodies. Deans/ Vice-President Operations are responsible for the approval and recording of all consultancy activity in their area.

Staff undertaking consultancy must also comply with the Conflicts of Interest Policy and Intellectual Property Regulations.

4.7 Subsidiary companies and other University entities

Finance Committee are responsible for approving and monitoring the University’s investments in any trading activities or operations in which the University has an interest. 

The University will consolidate in the University accounts any undertaking, including companies and other corporate entities, over which the University has control or exercises a substantial degree of influence in relation to that company’s activities.

Where the University is asked to take any shareholding, or take part in any joint venture or partnership, even where the University’s contribution is nil or minimal, consent should first be obtained from Southampton Enterprise Board.

Finance Committee examine and approve the basis and structure of any trading entities which the University might propose to set up and to approve their disestablishment.

Finance Committee also examine and approve any changes to intercompany loans or shareholdings and monitor changes to directors and Board governance. 

All appointments of directors and company secretaries of subsidiary companies will require the approval of the University Executive Board.

The Directors of the company are responsible for the effective management of the subsidiary and ensuring that the appropriate processes and procedures are in place. The Directors must provide annual assurance statements to the University as part of the Annual Assurance Process.

Further details are set out in Finance Policy 11.

4.8 Exploitation of Intellectual Property

The University’s position regarding intellectual property ownership and commercial exploitation of work undertaken by staff through licensing and spin-out companies is outlined in the Intellectual Property Regulations.

Further details can be found in Finance Policy 13.

5.1 Taxation

The Executive Director, Finance and Planning is responsible for identifying and addressing the key tax risks
that the University is exposed to both in the UK and overseas, working openly with the relevant authorities
to achieve a low level of tax risk.

The University has adopted a risk based approach to tax management which ensures that all significant tax
risks are identified by reference to the value and frequency of occurrence.

The University’s primary activities are exempt from corporation tax under Section 472-488 of the
Corporation Tax Act 2010 and from capital gains tax under Section 256 of the Taxation of Chargeable Gains
Act 1992. Non-charitable activities performed in the UK, including those of the University’s UK trading
subsidiaries are subject to corporation tax. Overseas profits remain subject to corporate taxes in the
relevant territories.

Further details are set out in Finance Policy 14.

5.2 Retention of financial and associated legal documents

University Council has primary responsibility for ensuring that proper accounting records are kept which disclose with reasonable accuracy at any time the financial position of the University.

The Executive Director, Finance & Planning has responsibility for ensuring the retention of appropriate financial records for the purposes of HM Revenue and Customs, other statutory agencies and the external auditors. The University’s detailed policies relating to the retention of financial documents are contained within Finance Policy 4 and must be complied with.

6.1 Procurement and purchasing

All expenditure must be incurred solely in support of the Objects of the University as specified in its Charter and Statutes.

The Executive Director, Finance & Planning is responsible for all tendering activity and the publication of
contract awards.

The Executive Director, Finance & Planning is responsible for ensuring the purchasing of goods and services is compliant with the relevant legislation. Where a contracted supplier is in place, this supplier must be used for all relevant purchases.

Deans and the Vice-President Operations are responsible for ensuring that their staff comply with relevant policies including the Anti-Bribery Policy and Conflicts of Interest Policy as well as the Financial Regulations when purchasing goods and services and follow Finance Policy 15 which sets out the detailed guidance.

Staff must not commit the University contractually where they are not authorised to do so. Official
University orders must be placed for the purchase of all goods and services unless prior agreement has
been obtained from the Executive Director, Finance & Planning. Orders or contracts must be placed prior
to any work being undertaken or any commitment made. Finance Policy 15 sets out the authorised contract signatories for the University.

The University will hold suppliers accountable for the Key Performance Indicators as set out in contract terms and conditions. Deans/ Vice-President Operations are responsible for ensuring adequate contract
management procedures are in place for contracts in their areas. The Head of Procurement is responsible for ensuring adequate contract management procedures for major cross University contracts.

6.2 Payments – non staff

The Executive Director, Finance & Planning is responsible for the payment of all monies due from the University. The standard terms for payment are 30 days from receipt of an accepted invoice. The University should always ensure that it receives a valid tax invoice from suppliers that are VAT registered prior to payment being made. Invoices should be sent directly to Accounts Payable quoting a valid purchase order.

Deans and the Vice-President Operations are responsible for ensuring that goods are appropriately receipted on the Finance System. Invoices will only be paid where there is a three way match between the invoice, order and goods receipt. Where payment is requested prior to the receipt of goods or services, approval must be given by the relevant Head of Faculty/Professional Service Finance.

Finance Policy 16 sets out the mechanisms and controls for payment of non-staff costs including the use of Procurement Cards.

6.3 Payroll and Pensions

The Executive Director, Human Resources is responsible for the maintenance of human resources records and for determining the contractual arrangements relating to the payment of salaries, wages and other emoluments. Further details can be found on the Human Resources website.

All contracts of employment must be issued by the Human Resources department.

The Executive Director, Finance and Planning is responsible for making payroll payments to staff and for the maintenance of related records, including those of a statutory nature. Sufficient segregation of duties between Human Resources and Payroll staff must be observed at all times.

The Executive Director, Finance and Planning will decide when tax will be deducted from payments to staff and consultants. The Executive Director, Finance and Planning will ensure compliance with all regulations from the appropriate authority regarding the deduction of tax, national insurance, pension and other statutory, contractual and voluntary deductions (including any credits to be applied through the taxation system).

Faculties and Professional Services are responsible for providing promptly to the Executive Director, Human Resources any relevant information regarding the appointment, service breaks, resignation or dismissal of
an employee.

All temporary staff must follow the procedures for registration and submission of timesheets as set out by UniWorkforce. No payments to staff will be made for work undertaken prior to completed registration.

The Executive Director, Finance and Planning is responsible for ensuring pension arrangements meet legislative requirements, the maintenance of related records and that deductions are paid to the appropriate scheme in line with the rules of the scheme. 

Further details are set out in Finance Policy 18.

6.4 Travel

The Executive Director, Finance & Planning is responsible for ensuring that policies and procedures are in place to ensure consistency and transparency relating to the costs of University travel. Travel should only
be booked if it is appropriate and reasonable and necessarily incurred whilst undertaking approved business activities on behalf of the University.

Finance Policy 17 sets out the Travel Policy which is compliant with relevant legislation including the requirements of HM Revenue and Customs.

6.5 Expenses

The Executive Director, Finance & Planning is responsible for the payment of expenses. Expenses should be reimbursed in full for all types of expense wholly, necessarily and exclusively incurred in the course of the
University’s business, and which are in excess of those they would normally incur. Expenses do not include the cost of goods or services which must be purchased via an official University order unless prior agreement has been obtained from the Executive Director, Finance and Planning/Director of Finance.

Finance Policy 25 sets out the Expenses Policy which is compliant with relevant legislation including the requirements of HM Revenue and Customs.

6.6 Gifts and hospitality

The University discourages offers of personal gifts or hospitality outside normal working practices from potential customers or suppliers which are essentially of a social nature.

Finance Policy 26 sets out the rules which must be followed for all receipts of gifts or hospitality to staff.

6.7 Legal costs

Any potential or pending legal related matters should be referred as soon as practicable to the Director of Legal Services. The Director of Legal Services will inform the Executive Director, Finance and Planning of any
financially material events.

6.8 Leases

The permission of the Executive Director, Finance & Planning is required to commit the University to any lease agreements. All leases will be in the name of the University.

6.9 Insurance

The Executive Director, Finance and Planning is responsible for ensuring that appropriate insurance is in place. The Head of Insurance is responsible for the University’s day to day insurance arrangements, including the provision of advice on the range of insurance cover available, negotiating claims and maintaining the necessary records.

Any person placing contracts or agreements on behalf of the University must ensure that the legal liability of the University for risks are covered by insurance as necessary and must consult with the Head of Insurance. 

Any circumstances which could give rise to a claim on the University’s insurance must be advised to the Head of Insurance immediately.

7.1 Treasury management and investments

Finance Committee and Council considers the arrangements for the identification, management and
control of treasury management risk and reviews these at least annually to ensure their adequacy and
suitability.

The Executive Director, Finance and Planning is responsible for implementing and monitoring the
arrangements established by Council. The Executive Director, Finance and Planning will report to the Vice-President Operations and the Treasurer as a matter of urgency, the circumstances of any actual or likely difficulty in achieving the University’s business objectives.

The Executive Director, Finance and Planning will ensure that the University always has sufficient liquid funds available to it which are necessary for the achievement of its business objectives. The Executive Director, Finance and Planning will ensure that sufficient cash balances and available facilities exist for this purpose.

The University will manage its exposure to fluctuations in interest rates with a view to containing its net
interest costs, or securing its interest revenues (as identified in the annual budget and cash flow forecasts) and meeting reasonable benchmark returns. It will achieve this by ensuring stability and certainty of costs and revenues whilst retaining a sufficient degree of flexibility to take advantage of unexpected, potentially advantageous changes in the level or structure of interest rates.

The primary objective of the University’s treasury management activities is the security of the principal
sums it invests. Accordingly, it will ensure its counterparty list is constructed with security in mind, but with reasonable spread to make the most of market conditions. The counterparty list will be reviewed on a continuing basis.

7.2 Borrowing

All borrowing will be subject to the approval of Finance Committee and Council, who will consider the necessity of the facility, the reasonableness of the terms and the University’s ability to repay. The Executive Director, Finance and Planning is responsible for short-term borrowing to meet day to day cash shortfalls within limits approved by Finance Committee and Council. 

The University will ensure that its borrowing and financing agreements are negotiated with a view to obtaining competitive and favourable offer terms for renewal or refinancing if required. It will actively manage its relationships with its counterparties in these transactions in such a manner as to secure this objective, and will avoid over-reliance on any one source of funding if this might jeopardise achievement of the above. The University will not enter into funding arrangements where the repayment profile of the loans exceeds the expected useful economic life of the asset or venture being financed.

The University will seek to ensure that, where possible, new funding arrangements will not be entered into that bind the University to meet financial covenants and security arrangements which are deemed to be
more onerous than those contained within the current loan documentation. The financial position of the University is monitored on a regular basis to ensure it does not breach any of its existing financial covenants. 

Further details are set out in Finance Policy 22.

7.3 Banking arrangements

University Bankers are appointed by the University Council on the recommendation of Finance Committee. The Executive Director, Finance and Planning is responsible for all the University’s day to day banking arrangements.

The permission of the Executive Director, Finance and Planning is required to either open or close a bank account for dealing with the University’s funds. All bank accounts will be in the name of the University and managed within Financial Accounts.

8.1 Capital expenditure - land and buildings and equipment

Finance Committee are responsible for considering all new capital programmes, for considering all business cases for investments over £25m and for making recommendations to Council for approval. Estates
Programme Board (EPB) is responsible for prioritising major Estates projects and proposing the Estates Capital Programme to Planning and Resources Group, Finance Committee and Council for approval.

EPB is responsible for the delivery and management of the Estates Capital Programme and the Executive Director iSolutions is responsible for the delivery and management of any approved IT Capital Spend. Finance Committee are responsible for monitoring the Capital Programme to ensure that significant projects are progressing to time and budget. Finance Committee can approve any amendments to a previously approved capital project budget other than where an overall budget is exceeded by more than £5m or where a significant project of over £25m is exceeded by 10% where approval is required by Council.

The Executive Director, Estates and Facilities is responsible for the day to day management and maintenance of all land and buildings and for the preparation and implementation of a plan for the acquisition, refurbishment and disposal of land and buildings in the context of the Estates Strategy. Finance Committee consider the acquisition of, disposal of and/or any leasing arrangements of land and buildings of estimated value in excess or £10m and are responsible for making recommendations to Council for approvals above £25m.

Further details are set out in Finance Policy 19.

8.2 Capitalisation and disposal of assets

The Executive Director, Finance and Planning is responsible for ensuring that all assets over £25,000 (including irrecoverable VAT) are capitalised in the correct financial year in line with Finance Policy 20 and depreciated over their useful life.

Deans/ Vice-President Operations are responsible for the safekeeping of all University assets within their areas. An annual review of assets is undertaken at financial year end where Deans/ Vice-President Operations are responsible for confirming the location of all assets and highlight any changes to their use or value.

Items or related groups of items costing less than £25,000 (including irrecoverable VAT) are written off in the year of purchase. Deans/ Vice-President Operations are responsible for the safekeeping of these items and maintaining an effective inventory.

Authority to dispose of any asset or impair its value is set out in Finance Policy 20.

8.3 The use and control of University vehicles

Deans/ Vice-President Operations are responsible for University vehicles under their control. This responsibility includes acquisition and disposal, taxation, legal compliance and maintenance arrangements. Insurance is the responsibility of the Executive Director, Finance and Planning. Vehicle registration documents must be lodged with the Insurance Office for safe keeping.

University vehicles may only be used on University business and not by staff or others in a private capacity including home to work travel. Deans/ Vice-President Operations are responsible for ensuring that any personal use of any University vehicle including any home to work travel is notified to the Head of Payroll and Pensions immediately who will assess whether there has been any benefit in kind and any tax implication. The University reserves the right to recharge employees any fines, administration fees and other related costs incurred whilst driving in a University owned, leased or hired vehicle. Deans/ Vice- President Operations are responsible for keeping a daily log of any use of any University Vehicle in their
area.

Further details can be found in Finance Policy 17.

8.4 Stocks and stores

Deans/ Vice-President Operations are responsible for establishing and maintaining adequate arrangements for the custody of stocks and stores within their area. Those Faculties/Professional Services whose stocks require valuation on the balance sheet must ensure that regular inspections and stock checks are carried out. 

Stocks and stores of a hazardous nature must be subject to the appropriate security checks and Health and Safety procedures.

Financial Regulations

• Wherever this document refers to Financial Regulations it is deemed to include
  the associated Finance Policies.

The University 

• For the purposes of this document “The University” means the University Group
  including all consolidated entities.
• It also includes linked charities under the control of the University.

 1  Audit
 2  Fraud and Bribery
 3  Financial Planning, Approval and Monitoring
 4  Retention of Financial and Associated Legal Documents
 5  Anti-Money Laundering
 6  Student Fees
 7  Income
 8  Gifts and Donations
 9  Consultancy, Private Work and Other Appointments
10 Commercial and Trading Income (non research)
11 Subsidiary Companies and Other University Entities
12 Research Grants and Contracts
13 Exploitation of Intellectual Property
14 Taxation
15 Procurement and Purchasing
16 Payments
17 Travel
18 Payroll and Pensions
19 Capital Expenditure
20 Capitalisation and Disposal of Assets
21 Principal Accounting Policies
22 Treasury Management
23 Schedule of Delegation
24 Criminal Finances Act 2017
25 Expenses
26 Gifts and Hospitality

The Schedule of Delegation is set out in Finance Policy 23

Council

The Council is responsible for:

• approving these Financial Regulations
• University Financial Affairs
• the distribution of resources
• the appointment of auditors
• approving the University Annual Budget
• accounting records
• setting regulated fees
• approving a Treasury Strategy and Policy
• all borrowing
• the appointment of University Bankers
• providing authority to dispose of any asset greater than and including £25m or impair its value

Finance Committee

The Finance Committee is responsible for:

• recommending the Financial Regulations to Council for approval
• approving Finance Policies
• approving any departure from these Financial Regulations
• recommending the distribution of resources to Council
• recommending the University Annual Budget to Council
• proposing regulated fees to Council
• approving non regulated fees
• writing off debts as set out in Finance Policy 7
• recommending the Treasury Strategy & Policy to Council
• recommending any borrowing to Council
• recommending the appointment of University Bankers to Council
• recommending the Capital Programme to Council
• the authority to dispose or impair any asset greater than and including £10m up to £25m

Audit Committee

The Audit Committee is responsible for:

• the effectiveness of audit, risk assessment and internal control arrangements
• agreeing the Principal Accounting Policies 

Executive Board Members

The Executive Board Members are responsible for:

• ensuring compliance with these Financial Regulations at all times
• effective and efficient use of resources in line with the Strategic Plan
• proposing non regulated fees to Finance Committee
• appointing directors & company secretary of subsidiary companies or other university entities
• recommending the Capital Programme to Finance Committee and Council for approval
• the safekeeping of University Assets

Vice-Chancellor and President

The Vice-Chancellor and President are responsible for:

• reporting any material adverse changes
• contract signature as set out in Finance Policy 15

Vice-President Operations

The Vice-President Operations is responsible for:

• approving any departure from a Finance Policy
• the approval of personal gifts and hospitality

Deans/Vice-President Operations

The Deans/Vice-President Operations are responsible for:

• ensuring all staff and students in their area are aware and comply with these Financial Regulations
• effective and efficient use of resources in line with the Strategic Plan
• ensuring Budget Holders are aware of their responsibilities
• providing approval to Executive Director, Finance and Planning to submit a research application or accept a research award
• providing approval to Executive Director, Finance and Planning to undertake non-research income activity
• providing approval to undertake consultancy, private work or accept other appointments
• contract management of supplier
• goods receipting
• the safekeeping of University Assets
• maintaining an effective inventory University vehicles
• reporting any personal use of any University vehicles
• adequate arrangements for stocks and stores

Executive Director, Finance and Planning

The Executive Director, Finance and Planning is responsible for:

• approving any departure from a Finance Policy
• authorisation for any guarantee or indemnity
• Financial Approval as set out in Finance Policy 3
• the prompt collection of all income
• setting credit limits, credit references and collection of debts
• the accounting treatment of gifts and donations
• approval to submit research applications
• approval to accept research awards
• ensuring all research applications are appropriately costed and institutional support is affordable and within financial budgets and forecasts
• approval to undertake non-research income activity
• approval to create an entity with University investment
• identifying and addressing the key tax risks of the University
• the retention of financial and other associated legal documents
• tendering goods and services
• the publication of contract awards
• compliance with Public Contract Regulations and EU Procurement Directives
• ensuring the use of a contracted supplier
• the payment of all monies due
• the mechanisms of payment for non-staff costs
• making payroll payments to staff
• the maintenance of payroll records
• deductions from pay
• pension arrangements
• setting travel policies and compliance with relevant legislation
• the payment of expenses
• approving the entering of any lease agreement
• all insurance arrangements
• the implementation of the treasury strategy
• short term borrowing in line with the treasury strategy
• opening and closing all bank accounts
• the capitalisation of assets in line with the Principle Accounting Policies

Capital Programme Board

The Capital Programme Board is responsible for:

• the delivery and management of the Capital Programme

Executive Director, Estates and Facilities

The Executive Director, Estates and Facilities is responsible for:

• the day to day management and maintenance of all land and buildings

Director of ODAR

The Director of ODAR is responsible for 

• approving significant fund raising activity

Heads of Faculty/Professional Services Finance

The Heads of Faculty/Professional Services Finance is responsible for:

• approving payment prior to the receipt of goods and services
   

Subsidiary Companies

• The Directors of the company are responsible for ensuring compliance with these Financial Regulations at all times.
• The Directors of the company are responsible for ensuring compliance with Finance Policies where stated in the policy. Where subsidiaries set their own policy, Directors are responsible for writing these policies and submitting them to the Executive Director, Finance and Planning for approval.
• The Directors of the company are responsible for the effective management of the company and for ensuring that appropriate processes and procedures are in place.
• The Directors of the company are responsible for providing annual assurance statements to the University as set out in the Annual Assurance Process.

Employees

• Must comply with these Financial Regulations at all times
• Budget Holder approvals must comply with Finance Policy 3