FINANCIAL REGULATIONS APPROVED BY THE UNIVERSITY COURT AT A MEETING HELD ON 9TH DECEMBER 2014

Transcription

1 FINANCIAL REGULATIONS APPROVED BY THE UNIVERSITY COURT AT A MEETING HELD ON 9TH DECEMBER 2014

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3 FOREWORD This document sets out the University s Financial Regulations. It translates into practical practice the University s broad policies relating to the financial control. To conduct its business effectively, the University needs to ensure that it has sound financial management systems in place that are strictly adhered to. This document replaces the previous Financial Regulations (January 2014) and sets out the financial policies of the University. Financial Regulations are an essential part of the University s framework of systems and controls and key to the professionalism of its operation. The funding bodies require universities to have sound systems of internal financial management and control, and may withhold funding if these are not in place. The University s Court places reliance on the Financial Regulations in providing assurances to funding and other bodies that it follows fully documented financial procedures. As the University s Accountable Officer, it is my responsibility to ensure a robust system of financial control within the institution. These Regulations are a key control in meeting this responsibility. The Regulations have been subject to the consideration of Policy and Resources Committee and submitted for approved by Court on 9th December Professor Craig Mahoney Principal & Vice-Chancellor Financial Regulations III

4 CONTENTS 1. GENERAL Purpose and Scope Employee Responsibilities Ethical Principles Gifts and Hospitality Fraud, corruption and financial misconduct 7 2. CORPORATE GOVERNANCE Overview Roles and Responsibilities Value for Money (VfM) Risk Management External Audit Internal Audit 9 3. FINANCIAL MANAGEMENT AND CONTROL Budgetary Control Structure Budget Process Financial Reporting and Monitoring Capital Expenditure INCOME General Fees Receipt of cash and cheques Collection of Debts Selling Goods and Services Donations Sponsorship Research Grants and Contracts Private Consultancy Collaboration Provisions Intellectual Property European Union and other matching funding Accommodation and Catering Other income Deficits EXPENDITURE General Buying Goods and Services (including Consultancy) and Works Procurement Internal Services Selecting a Supplier Purchase Orders Employment Status Procurement Cards University Credit Cards Petty Cash Budget Authorisation Levels 17 Financial Regulations

5 5.12 Authorised Signatories EC Tender Limits Payment of Invoices Authorisation of Invoices Payments to students Late payment rules Payments to members of Court Severance payments Declaration of Interest Pay and Pensions Expenses Estimates and Provisions ASSETS Land, Buildings, Fixed Plant and Machinery Fixed Asset Registers Inventories Personal Use of Assets Stock Banking and Cash Management Borrowings Treasury Management Investments OTHER Taxation Vehicles Security Insurance Students Association Freedom of Information Retention of Finance Documents University Status 24 Appendix 1 Key Financial Roles and Responsibilities Appendix 2 Schedule of Delegation of Authority Appendix 3 Procurement Route Appendix 4 Retention of Financial Documents Note: Unless otherwise stated the first point of contact for advice should be the Director of Finance Financial Regulations

6 1. GENERAL 1.1 Purpose and Scope These Regulations form a key component of the University s internal governance arrangements and provides a framework for management to enable the University to fulfil its obligations, as laid down in the Scottish Funding Council s (SFC) current Financial Memorandum (effective from November 2014), to maintain sound financial controls at all times. The governing body of the institution, Court, is collectively responsible and has ultimate responsibility that cannot be delegated for overseeing the institutions activities, to determine its future direction, and to foster an environment in which the University s Corporate Strategy is achieved. The purpose of these Financial Regulations is to provide control over the totality of the University resources and provide management with assurances that institutional resources are being properly applied in pursuit of the objectives of the University Corporate Strategy. The authority for the Financial Regulations will be Court, who has responsibility for them and for approving any amendments to the Financial Regulations. The Regulations are an important part of our procedures to ensure that: a sound system of internal management control environment is maintained; best value for money is promoted; our legal and financial obligations are fulfilled; our assets are safeguarded; management information is relevant and timely; and University funds are applied only for the purpose for which they were received. They apply to: all members of Court; and all staff and students (if on payroll or work on voluntary basis); and all schools and services, and; all University income and expenditure (Revenue & Capital). The Regulations refer to Policy Statements and other documents which will be updated from time to time. Such instructions supplement these Regulations, and in event of conflict these Regulations prevail. These include: Fraud Policy & Procedure Public Disclosure Policy Anti-Bribery Policy & Procedure Donations Policy & Procedure Procurement Policy Staff Expenses Policy & Procedure Disciplinary Policy & Procedure Treasury Management Policy 1.2 Employee Responsibilities Compliance with the Financial Regulations is compulsory for all staff connected with the University. Employees are expected to: comply with these Regulations and with University policy; take all necessary advice on matters with a financial consideration; assess and manage risks (including risks to health and safety) entailed in University business they transact; safeguard University property and income for which they are responsible; 6 Financial Regulations

7 use University resources economically, efficiently, effectively and secure value for money; comply with University s legal, administrative and other obligations (including those to Scottish Funding Council, HMRC and other Government authorities). This applies irrespective of sources of funding. Deliberate, negligent or repeated disregard of these Regulations may result in disciplinary action being taken against the person concerned, under the terms of their employment contract. See UWS Disciplinary Policy. 1.3 Ethical Principles The University is committed to the highest standards of openness, integrity and accountability. The University conducts its business in accordance with: the seven principles identified by the Committee on Standards in Public Life (selflessness, integrity, objectivity, accountability, openness, honesty and leadership); the Scottish Code of Good HE Governance; Corporate Social Responsibilities/Global Impact. Staff should conduct themselves with integrity, impartiality and honesty, and maintain a high standard of propriety and professionalism. This includes avoiding laying themselves open to suspicion of dishonesty, and not putting themselves in a position of conflict between their official and private interest. 1.4 Gifts and Hospitality Gifts other than token value gifts should normally be refused. If such refusal is deemed likely to cause offence, the gift may be accepted as a gift to the University and should be passed on receipt to the University Secretary and Registrar for University use. Colleagues should be aware that gifts, including hospitality, offered by contractors, agents, service providers or other associated persons may place them in a vulnerable position. Even when offered and accepted in innocence, such gifts may be misconstrued by others. Members of Court must not receive gifts, hospitality or benefit of any kind from a third party which might be seen to compromise their personal judgement or integrity. Any offer or receipt of such gifts, hospitality or benefits should immediately be reported to the Court office. See Anti-Bribery Policy and Procedure. 1.5 Fraud, corruption and financial misconduct Is it the duty and responsibility of each employee to act with integrity and honesty in all aspects of University activity. Each employee must act in accordance with the Fraud Policy and Procedure and with reference to the University framework to address to requirements of the Bribery Act Misuse of misappropriation of the assets and funds of the University is a disciplinary matter which can also lead to criminal proceedings. The University recognises that employees, students and members of the public may have concerns which they believe to be a matter of public interest and which will be investigated. All such disclosures will be acted upon sensitively, fairly, promptly and properly. The University will undertake any necessary corrective action. The policy on Public Interest Disclosure ( whistleblowing ) is available The purpose of this procedure is intended to assist individuals who reasonably believe they have discovered serious malpractice or impropriety. The normal internal channels for raising concerns, through line management/senior management or People and Organisational Development should be used as appropriate. Financial Regulations 7

8 2. CORPORATE GOVERNANCE 2.1 Overview The University of the West of Scotland is governed by Court, which was established under the Further and Higher Education (Scotland) Act The University is an exempt charity for the purpose of the Charities Act 1993 (No. SC ) and must comply with the regulations of the Office of the Scottish Charity Regulator. Information on the Governance Structure is available from University website. A Corporate Governance statement is available as part of the annual Financial Statements. The University of the West of Scotland is multi-campus in nature with campuses in Ayr, Dumfries, Hamilton and Paisley. 2.2 Roles and Responsibilities Financial management responsibilities are vested in Court, Policy and Resources Committee and Audit & Risk Committee, who delegate responsibility to the Principal and Vice-Chancellor so far as permitted. The Principal and Vice-Chancellor has authority to delegate responsibilities to other post holders as he decides. Their key financial roles and responsibilities are listed in Appendix 1. Budget-holders may delegate responsibility but not their accountability. 2.3 Value for Money (VfM) Under the Financial Memorandum, the University must systematically review arrangements for securing value for money from public funds. It will keep under review its arrangements for managing the resources under its control, taking into account guidance on good practice from SFC, Audit Scotland, Scottish Procurement or other relevant bodies. The University promotes an embedded approach to value for money (which is often referred to as the 3 Es economy, efficiency and effectiveness). The University will: benchmark activities against other similar organisations as appropriate; respond to opportunities to develop the economy, efficiency and effectiveness of activities; include VfM consideration in all decision making and review processes as appropriate; deploy resources wisely and with due care and attention; promote a culture of continuous improvement so that all staff recognise their ongoing obligation to seek value for money for the institution as part of their routine activities; demonstrate actively to both internal and external observers that the achievement of VfM is sought in all activities undertaken. include VfM within the Internal Audit programmes of work which then allows the Audit and Risk Committee to refer to VfM within its annual report. 2.4 Risk Management The University s approach to Risk Management is designed to ensure that risk management is the business of all University managers and employees. Risk management is viewed as an integral part of the management of the University along with and as part of Strategic Planning and Performance management. As part of the development of the University Corporate Strategy key strategic aims were agreed alongside key performance indicators through managed intelligent risk. 8 Financial Regulations

9 2.5 External Audit The University Court will appoint an independent external auditor on the recommendation of the Audit & Risk Committee. The Audit and Risk Committee will keep under review its external audit arrangements and conduct a formal review at least every three years. Court will be invited by the Audit and Risk Committee to formally reappoint the external auditor each year. The primary function of the external auditor will be to report on the annual financial statements of the University and to carry out such examination of the statements and underlying records and control systems as is necessary to reach their opinion on the statements. Their duties will be in accordance with advice set out in the Financial Reporting Council s standards and guidance for auditors. The external auditor s report will be reviewed by the Audit and Risk Committee. In addition, external auditors from other organisations (e.g. Research Councils, Government departments, the EU etc) have the right of access to the University to examine specific areas of activity. 2.6 Internal Audit Internal Audit is a vital element in good corporate governance since it provides assurance to the Principal and Vice-Chancellor, senior management and Court on the adequacy and effectiveness of risk management, corporate governance, internal control and value for money. Internal Audit is responsible for providing an objective and independent appraisal based on an agreed sample taken from the entirety of the University s operations, financial and otherwise. The sample may be varied following discussions with the key stakeholders to reflect changed priorities and emerging issues. An annual report must be produced by Internal Audit for Court and the accountable officer. The report must cover the financial year and include any significant issues up to the date of signing the report and its considerations of the financial statements for the year. The report must include the opinion on the adequacy and effectiveness of the institutions arrangements for risk management, control and governance and value for money. The Internal Audit Service remains independent in its planning and operations and has direct access to Court, the Principal and Vice-Chancellor and the Chair of the Audit and Risk Committee. All the University s activities, funded from whatever source, fall within the remit of both types of audit. All auditors (internal and external) must be given access to all records etc they require. They are entitled to receive such explanations as are necessary concerning any matter under examination. Auditors will require access to third party records where those third parties have a financial relationship with the University. Financial Regulations 9

10 3. FINANCIAL MANAGEMENT AND CONTROL The University Corporate Strategy informs the financial forecast, it is updated on a regular basis and approved by Court prior to submission to Scottish Funding Council. The Chief Finance and Information Officer is responsible for maintaining an up-to-date, rolling five year financial forecast, which will be approved by Court. The financial forecast reflects our corporate aspirations, aligns resources to our strategic aims and ensures financial sustainability. The key objectives are to: Ensure the long term financial sustainability of the University; Maintain capacity to underpin the delivery of current strategies and objectives; Ensure funds are available to meet agreed investment opportunities; Undertake appropriate planning and risk management activities; Ensure appropriate financial control and provide information in an environment that encourages financial autonomy and accountability; Ensure compliance with the Scottish Funding Council financial memorandum and other statutory requirements; Ensure appropriate compliant procurement procedures; 3.1 Budgetary Control Structure The budget is a tool for realising the University financial aims and the achievement of the agreed budget is the responsibility of Budget-holders, who must ensure effective monitoring is undertaken. All Budget-holders are responsible to the Members of the Executive Group for the economic, efficient and effective use of funds available to them, and must account fully and comprehensively for the use of those funds. Budget-holders are typically a Dean of School and Director/Head of Department. A Dean of School is required to meet agreed key performance indicators for income, staff costs, non-staff costs and contribution as a percentage of school income. A Director/Head of Department is required to meet their agreed financial budgets both for income generation and cost management within the agreed budget. Budget-holders must delivery value for money on all financial activities. No commitment or contract should be entered into without appropriate budget provision being available and the authorisation of the responsible Budget-holder. Commitments extending over more than one financial period should be recognised and treated appropriately for accounting and budgeting purposes. Capital expenditure may not be made from revenue budgets or revenue expenditure from capital budgets. Budgeted non-staff expenditure cannot be utilised for staff expenditure. A Dean of School has authority to create new posts to establish fixed term contracts, and to increase hours as part of the financial management process as long as the financial targets are met and student-staff ratio is maintained. If additional posts are required and budget targets (% of staff cost to income), are exceeded, then a proposal should be put to the Depute Principal for consideration showing: the duties of the proposed post; a justification showing why these duties cannot be carried out by existing staff; the costing, including on-costs and the necessary set up costs of the post; benefits of proposed post linked to objectives of the University Corporate Strategy Budget-holders will be supported in their financial management by senior members of staff from the Finance Department, through an agreed Business Partnership approach which will include regular discussion on all finance related matters. 10 Financial Regulations

11 3.2 Budget Process The Director of Finance is responsible for preparing budget guidelines and an annual budget. The production of the annual budget is a key output of the annual planning process. The annual budget will provide sufficient funding and investment to enable that corporate aims can be achieved. The detailed budgets are a vital aspect of financial management and will be communicated to Budget-holders as soon as possible before the commencement of the new financial year following approval by Court. 3.3 Financial Reporting and Monitoring The University produces monthly management accounts to report the progress of the Schools and Services towards achieving the agreed financial targets set out in the annual budget. Budget-holders review these reports on a monthly basis with senior members of the Finance Department. Executive Group receive a monthly report and Policy & Resources Committee and Court receive regular updates on the financial position. The University prepares financial statements annually which are the subject of external audit. Once complete these financial statements are presented to Executive Group, Policy and Resources Committee and Audit and Risk Committee before they are approved by Court and thereafter submitted to Scottish Funding Council. The University has an obligation to ensure that grants made for funding purposes are only used for the purpose for which they are given and the external auditors, in their audit of the financial statements, have to report to the University their findings in this regard. 3.4 Capital Expenditure Capital expenditure is expenditure on land, buildings, equipment, vehicles, furniture and associated costs which can be classified as an asset in accordance with the University s Accounting Policies. A capital asset is one that will provide benefit to the University over more than one financial year. The annual capital expenditure programme will be approved by Court, as part of the annual budget process. Progress against the agreed programme will be reported in the monthly management accounts. Proposed capital projects included in the budget are required to have a full business case which includes: a statement which demonstrates the project s consistency with the corporate strategy and clear and direct linkage to the Corporate KPIs and, if appropriate, the estates masterplan; a budget showing a breakdown of costs including professional fees, and VAT; an analysis of the proposed funding sources; a financial evaluation of the project, together with its impact on revenue and expenditure. Budget-holders will engage with Procurement at the earliest possible stage, ideally pre-business case, regarding specification, make/buy decisions, sustainability considerations, process etc. For major capital schemes not covered under the normal annual capital allocation, e.g. a campus re-build or other similar major project, separate project management and reporting arrangements will be put in place. Regular project reports, including an analysis of actual expenditure against budget and funding arrangements will be provided to Executive Group. Financial Regulations 11

12 4. INCOME 4.1 General 4.2 Fees It is the responsibility of all staff to ensure revenues to the University is maximised by the efficient application of agreed procedures for the identification, collection and banking of income. The Dean of School and Director/Head of Department should provide promptly any information the Director of Finance requires in order to collect this income. All requests for monies due to the University should be submitted on official invoices issued through the Finance Department. No member of staff outside the Finance Department should administer funds on behalf of a third party. All such third party activity should be directed to the Finance Department for action, and no action should be taken before a reply has been received. Tuition and accommodation fees are recommended by Policy and Resources Committee annually for approval by Court who will consider the strategic context, taking into account Government policy, market conditions and the University s Key Strategic Aims. 4.3 Receipt of cash and cheques The Director of Finance is responsible for the prompt collection, security and banking of all income received. All monies received by and for the University will be passed promptly to the Finance Department for immediate lodging in the University s bank account. The Director of Finance will keep accurate chronological records of such deposits. All receipts from customers will be paid in gross and payments to suppliers will not be set off against receipts. Income will not be used to make petty cash disbursements, borrowed by staff for personal use, or used for the cashing of personal cheques. 4.4 Collection of Debts In accordance with the University s policy on debt, the Director of Finance will ensure that: Debtor invoices are raised promptly on official invoices Invoices are accurately prepared, showing the amount due with VAT correctly charged where appropriate. Monies received are posted to the correct debtor account in a timely manner. Prompt and effective action is taken in collecting overdue debts in accordance with financial procedures All debts are monitored and reports prepared for management. In additional, the Dean of School and Director/Head of Department must assist in minimising the risk to the University of the non-collection of debts and must help with the collection process where appropriate. 4.5 Selling Goods and Services Continuing Professional Development (CPD), short courses, consultancy and other services offered by the University to external clients should be priced to recover at least full economic cost for the University. These fees should be set through liaison with the Director of Finance. All sales invoices or invoice requisitions should specify quantity, price, payment terms and any discounts available. Requests for sales invoices should be passed to the Finance Department at the earliest opportunity. The online store facility provides the option to create products for Vatable and Non-Vatable goods and services offered by the University that are sold on a regular basis e.g. replacement cards, field trips, short courses, conferences & events and merchandise. Sales are made online with payments being received immediately. HMRC approved VAT invoices and receipts are issued direct to the customer. This transaction method demonstrates an effective Value for Money approach and is available for use by all staff. 12 Financial Regulations

13 4.6 Donations The University welcomes philanthropic donations from individuals, charitable trustees and other corporate bodies in support of its agreed Corporate Strategy and in line with the University s Code of Ethics. Alumni Office is responsible for active fundraising for the University. All gift donations, cash gifts and benefactions that are made to the University are administered and invested in accordance with the University Donations policy & procedure. All donations should be advised to the University Secretary and Registrar, who will in turn, notify the Director of Finance. All donations are subject to specific accounting treatment and Finance should be involved with any payments received by the University. 4.7 Sponsorship Sponsorship will benefit the University when conducted in a manner consistent with the University s Corporate Strategy. The protection, image and reputation of the University is imperative. As sponsors may gain significant value from the exposure and association with the University through a sponsorship relationship, this will require the University is compensated appropriately. Schools and Services should contact the University Secretary and Registrar in the first instance regarding available sponsorship opportunities. 4.8 Research Grants and Contracts All income arising from research grants and contracts awarded to staff of the University will form part of the income of the University. The term research grant is used to refer to research funding from the UK research councils, charities, EU or other funding bodies where terms are non-negotiable. Other externally financed research projects are classified as research contracts. Where approaches are to be made to outside bodies for support for research projects or where contracts are to be undertaken with outside bodies, for support for research projects or where contracts are to be undertaken with outside bodies, it is the responsibility of the Dean of School and Director/Head of Department through the University s Research office to ensure that the financial implications have been appraised by the Director of Finance. This will include checking the credit-worthiness of the funder and obtaining a set of grant terms and conditions from each organisation providing funding to enable appropriate monitoring of compliance. The Dean of School is responsible for reviewing all applications for grants and will ensure that there is adequate provision of resources to meet all commitments. The Director of Finance will ensure that the full economic cost of research contracts is established which will help inform the decision making process. Research grants and contracts will be signed on behalf of the University by an approved signatory once the requirements have been satisfied (Appendix 2). The Director of Finance will maintain all financial records relating to research grants and contracts and will initiate all claims for reimbursement from sponsoring bodies. The Director of Finance is responsible to ensure all projects are closed off in a timely manner as projects end. Any surplus/loss resulting from the project are reported in the monthly management accounts. Any surplus resulting from a project belongs to the school/service, but cannot be used for any activity not relating to the project. Any loss to the University resulting from a failure to meet conditions of funding will be charged to the relevant School. Financial Regulations 13

14 4.9 Private Consultancy Private consultancy is when the member of staff acts entirely in a private (personal) capacity, so that the client has no link to the University. The employment contract for academic staff states that the University will be prepared to consider giving its consent to private consultancy work or collaborative arrangements with external organisations provided that any such arrangement is entered into in accordance with the terms of the University s Intellectual Property arrangements, and that it does not generate a conflict of interest. The consultant will not use any University address (mailing or ) in communication with the client or make use of University resources in the course of the consultancy or do anything that might lead the client to believe that the consultant is acting on behalf of the University. Members of staff must seek consent through their Dean of School and Director/Head of Department or the Vice- Principal Research, Enterprise and Engagement before agreeing to undertake private consultancy Collaboration Provisions This includes any contract or arrangement under which the University provides education to students away from University premises and in collaboration with a partner (also distance learning and distant delivery), or with the assistance of persons other than the University s own staff, or with independent contractors (partner organisations). Such a contract or arrangement must be agreed and appraised through the Collaborative Forum and approved by the International Advisory Committee Intellectual Property Certain activities undertaken within the University including research and consultancy may give rise to ideas, designs and innovations, which may be patentable, capable of protection by design registration or otherwise benefiting from protection under the law of intellectual property. The intellectual property rights for any idea, design or invention that arises from work undertaken by a member of staff whilst employed by the University, shall as provided by his or her contract of employment, normally belong to the University European Union and other matched funding Any such project requires the approval of the Director of Finance prior to any commitment being entered into. Final approval will be dependent upon the relevant School / Department being able to demonstrate that eligible matching funds are available and that the project is financially viable Accommodation and Catering The University s accommodation portfolio will be reviewed regularly by Executive Group. This review will include performance monitoring, rental levels and annual rent increases and major developments in the accommodation portfolio. Executive Group will review and approve the arrangements for catering provision on a regular basis Other income 4.15 Deficits Any form of income not previously covered will utilise similar rules and procedures as applied to those of Research and Commercial projects. Project costings will be undertaken and once approved, projects and/or cost centres will be established to record all project income and expenditure. Any unplanned deficits on other income-generating activities will be charged to the School/Departmental cost centres where the deficit was incurred. 14 Financial Regulations

15 5. EXPENDITURE 5.1 General All expenditure must be authorised, in accordance with the Schedule of Delegation of Authority framework (See Appendix 2), prior to any financial commitment being made. Funds from grants or donations must only be used within the terms of the grant or the specifications of the donations. The accounting treatment should be agreed through liaison with the Finance Department. All expenditure in respect of grants and contracts will be governed by the conditions in the agreement signed by the University and the funding body, and must be within scope of the UWS Procurement Policy and Procedures. The Director of Finance is responsible for making all payments to suppliers of goods, services and works to the University. 5.2 Buying Goods and Services (including Consultancy) and Works The ordering of all goods, services and works should follow the UWS Procurement Policy and the detailed procurement procedures manual, which are in line with European and Scottish procurement law. 5.3 Procurement The University requires all staff, irrespective of the source of funds, to obtain value for money when purchasing goods, services and works. The Director of Finance is responsible for: Ensuring that the procurement procedures are known and observed by all staff involved in purchasing for the University. Advising and assisting schools and services, where required on specific purchases Developing appropriate pre-negotiated contracts on behalf of the University to assist Budget-holders in meeting their value for money obligations. Arranging all large-scale purchase contracts (generally in excess of 50,000) undertaken by the University, in collaboration with the relevant School or Service. Ensuring that the University complies with all applicable procurement legislation and best practice procurement. Monitoring/maintaining the pre-negotiated contracts and all expenditure. Whole life costs comprise all costs involved in acquiring, owning, maintaining, operating and disposal. All UWS contracts must be in writing (e.g. purchase order/letter of acceptance). UWS standard terms and conditions shall automatically apply unless prior approval is obtained from the Procurement Manager or Director of Finance. Where appropriate, Procurement will be included in decisions regarding insourcing, outsourcing and shared services. 5.4 Internal Services For particular areas of expenditure, the University is required to manage and mitigate additional risks when procuring goods, services and works. Schools and Services are responsible for ensuring that the University obtains value for money, and manages its legislative requirements and duty of care involved in those activities. All IT purchases (hardware and software) must be directed via IS Department to ensure compliance with the Procurement of ICT Goods & Services Policy & Procedure. In the first instance, all Estates and Printing requirements must be directed through to the University Estates & Printing Departments. Other arrangements can be found at Internal Contracts. Where such pre-negotiated agreements exist, which are accessible to the University, these must be utilised in the first instance. Financial Regulations 15

16 5.5 Selecting a Supplier Supplier selection shall be carried out in accordance with UWS Procurement Policy and the processes outlined in the procedures manual. A complete list of all collaborative agreements can be found on the Procurement website at: Budget-holders are responsible for ensuring these existing agreements are utilised, wherever practicable. If an agreement is deemed to be unsuitable, the following must be submitted to the Procurement Manager: A detailed rationale why the agreement cannot be used, with supporting evidence; A statement ( acceptable) from the Dean of School and Director/Head of Department expressing awareness of and approval of the non-compliance. Where there is no suitable existing approved supplier or framework agreement, the procurement route is determined by the total value of the expenditure or where a contract, the total value over the full contract duration including extension options (Appendix 3). 5.6 Purchase Orders Any commitment to expenditure for regular requirements, other than for petty cash purchases, on behalf of the University must be made only through one of two methods. These are through the generation of an official purchase order raised on the University Finance System, or the use of procurement cards. Either process must be completed prior to delivery of the good, services or works. Goods and services must only be goods receipted once the service is complete or the goods delivered. Staff must not make commitments with suppliers without either the prior issue of an official purchase order or an authorised purchase card transaction. Invoices which do not state an official order number will be returned to the supplier. Consistent breaches of this requirement will be reported to the Director of Finance and disciplinary action may be taken. A purchase requisition must be completed to show the total aggregated value of the commitment. Expenditure must not be artificially broken down i.e. spread over smaller instalments. The requisition must be approved by the Budget-holder prior to the purchase order being created or a procurement card transaction being made. The order must show the full value of the commitment as soon as it is known and refer to any associated approved exemptions. When goods are delivered it is important to check that they are in acceptable quality and quantity. Any problem should be notified to the supplier immediately. If satisfactory, the purchase order status should be updated on Agresso to record that the goods have been received, to facilitate payment of the invoice. This goods receipt process must be performed at time of delivery not after the invoice has been received, as payment may be delayed. Delivery notes should not be sent to Finance or Procurement. They are important documents which need to be retained by the purchaser in case of future query, or audit. 5.7 Employment Status Before purchasing services from a sole trader is it important to confirm that the person supplying the service should not be treated as an employee for tax purposes. When engaging consultants to provide work Dean of School and Director/Head of Department must complete the Employment Status questionnaire, which should then be submitted to Finance and used to assess the status of the individual concerned. 5.8 Procurement Cards Procurement cards are a quick, efficient buying and payment tool which can be used for low value, high volume, and low risk transactions. Procurement cards may only be used where the value of the order does not exceed 1,000 (Incl VAT). Full details, including application forms, can be found at Procurement cards. 16 Financial Regulations

17 The operation and control of the University s procurement card scheme is the responsibility of the Director of Finance. Cardholders must use them only for the purposes for which they have been issued. They can be used to purchase services and goods up to the value of 1,000 (Incl. VAT) per transaction. Card details must not be shared, nor should they be used for personal or private purchases. Cardholders are required to provide written agreement to the procurement card rules of issue prior to the cards being issues. The Budget-holders must ensure that the goods or services shown on the statement have been ordered on behalf of the University. The Budget-holder must ensure that receipts for all goods and services are retained for audit purposes. Finance will carry out sample audits monthly on selected cardholders. The Director of Finance is responsible for managing and monitoring cardholder use, and where there is evidence of misuse or abuse, cards will be withdrawn from cardholders and disciplinary action may be taken. 5.9 University Credit Cards Where appropriate, the Director of Finance may approve the issue of University credit cards to appropriate staff. These differ to University procurement cards as these credit cards can only be used for the payment of valid business expenses. The Director of Finance is responsible for monitoring the use of University credit cards and accounting for expenses charged through them. Finance will carry out sample audits monthly on selected cardholders. The Director of Finance is responsible for managing and monitoring cardholder use, and where there is evidence of misuse or abuse, cards will be withdrawn from cardholders and disciplinary action may be taken Petty Cash In some circumstances, staff may purchase certain low value items and claim reimbursement at the discretion of the Finance Department. Where single item spend is less than 100 (Incl. VAT) this may be paid from either petty cash process (supported by receipts or vouchers) or via the University Procurement card wherever possible. Petty cash will not be used for personal purposes, for the cashing of personal cheques or for payment of salaries. The person who is granted petty cash, will be personally responsible for its safe-keeping Budget Authorisation Levels All expenditure committed by the University must be as follows: Less than 5,000 delegated Budget-holder Up to 20,000 (including VAT) - Budget-holder Between 20,000 and 100,000 (including VAT) member of Executive Group Between 100,000 and 500,000 (including VAT) Depute Principal or Chief Finance and Information Officer. 500,000 and above (including VAT) Principal & Vice-Chancellor Up to 2.0m for acquisition, disposal and leasing of estates and capital projects will be progressed through the University s Executive Group 2.0m and above, for acquisition, disposal and leasing of estates and capital projects will be progressed through Policy and Resources Committee Authorised Signatories The Director of Finance shall maintain a register of authorised signatories that will be reviewed annually and will be properly recorded in the University s financial systems. When requested, Budget-holders will supply specimen signatures of those requiring budgetary authority. Authority to incur expenditure may be delegated to named individuals within Schools/Departments. In exercising this delegated authority, Budget-holders are required to observe these financial regulations and all related procedures and ensure that Procurement duties are appropriately segregated in accordance with financial procedures. Financial Regulations 17

18 The Director of Finance must be notified immediately of any requested changes to the authorities to commit expenditure. Such changes will not come into effect until the Director of Finance has communicated approval of the change EC Tender Limits The European Commission sets tender limits every 2 years. The limits (excl. VAT), as detailed above, that came into force on 1st January 2014 were: The limits (excl. VAT), as detailed above, that came into force on 1st January 2014 were: Contracts awarded by other public bodies Supplies EUR 207,000 ( 172,514) Services EUR 207,000 ( 172,514) Works EUR 5,186,000 ( 4,322,012) These figures refer to the full expected value of the contract over its total expected life, including any extensions which are likely to occur Payment of Invoices The Director of Finance is responsible for deciding the most appropriate method of payment for invoices. Payments to UK suppliers will normally be made by BACS transfer. Non-UK payments will normally be made by Bank Transfer. Budget-holders are responsible for ensuring that expenditure within their area does not exceed funds available within their budget or financial forecast. All purchase orders instruct suppliers to submit invoices for goods or services to the Finance Department. Care must be taken by the Budget-holder to ensure that all discounts receivable are obtained. Supplier will be paid in arrears, within 30 days of receipt of a valid invoice bearing a UWS purchase order number Authorisation of Invoices Payments will only be made by the Finance Department against invoices that can be matched to a receipted purchase order. Where an invoice does not match a purchase order, it will be electronically work flowed to the School or Service and non-compliance monitored. It is the responsibility of the Budget-holder, to ensure that the following checks are carried out prior to an invoice being certified for payment. When authorising an invoice the authoriser is confirming that: It corresponds with the goods or services received; The invoice matches the order; The quality and quantity etc satisfactory; The full nominal code, including the project code (if applicable) is as shown on the invoice and is one of the cost centres included in the Budget-holder s areas of responsibility; It is covered by budgetary provision in that area. Please note that payments will not be made to someone other than the supplier unless the Finance Department have received notification that a debt factor is being used by the supplier. All invoices must be addressed to the Finance Department. Care should be taken by the individual authorising the invoice to ensure that all relevant discounts have been obtained Payments to students Payments to students on behalf of sponsoring organisations will be made on the authority of the Director of Finance on the basis of detailed supporting documentation supplied by the relevant School / Department. 18 Financial Regulations

19 5.17 Late payment rules Payments to suppliers are governed by the Late Payment of Commercial Debts (Scotland) Regulations 2013, which allows for interest and compensation claims in the event of late payment of debts. In view of the penalties in this Act, Schools / Departments must ensure that suppliers are instructed to submit invoices directly to the Finance Department Payments to members of Court Claims for reimbursement by members of Court will be authorised by the University Secretary and Registrar Severance payments Severance payments will only be made in accordance with relevant legislation and in terms of an approved University scheme. Professional advice will be obtained where necessary. Any severance payments made outwith approved schemes require approval by Depute Principal. All payments will be authorised by the Director of Finance and the Director of People and Organisational Development Declaration of Interest Purchasers and other University staff must declare and record any personal interest that might influence, or be seen by others to influence, their impartiality in arriving at a purchasing decision. Those who have business or personal relationships with, or friends/relatives employed by, external organisations bidding for University contracts must inform their own line manager and the Procurement Manager at the outset. All members of Court and members of Senior Management Team are required to disclose any interests which may potentially cause a conflict of interest in the University s Register of Interests. Any interest, financial or otherwise which is likely (or would, if publicly known, be perceived as being likely) to interfere with the exercise of independent judgement should be disclosed to the University. This register is retained and managed by the University Secretary and Registrar and is published on the University website Pay and Pensions Pay is made to employees in accordance with employment contracts issued by People and Organisational Development, and collective pay agreements. Changes to rates of pay, special payments etc are determined by People and Organisational Development and notified to Payroll. Payment of wages and salaries is by BACS monthly. People and Organisational Development are responsible for informing the Finance Department of all relevant matters relating to personnel for payroll purposes. In particular these include: Appointments, resignations, variations, dismissals, secondments and transfers; Absences from duty for sickness, maternity or other reason, apart from approved annual leave and other paid leave; Changes in remuneration, including normal increments and pay awards; Information necessary to maintain records of service for superannuation, income tax and National Insurance. Overtime payments can only be made to staff for whom appropriate contractual terms and conditions apply. Any additional payments to staff (items not covered under the terms and conditions of existing contracts of employment) cannot be made unless they are covered by a separate and additional employment contract or by way of a variation to contract, issued by People and Organisational Development. All payments must comply with HM Revenue & Customs regulations. In order for staff to be paid on time, it is important that all payroll related paperwork should arrive in the Finance Department before the published deadlines. This includes time sheets and visiting lecturer claims. Financial Regulations 19

20 5.22 Expenses The University s procurement procedures are in place to enable the majority of goods and services to be procured without staff having to incur any personal expense. Compliance with the University s Staff Expenses policy is required by all employees and other persons who may incur expenses that are being claimed from the University. Staff claiming expenses should ensure that the expenditure is claimed within two months of the expenditure incurred. Claims for expenditure incurred over four months prior to the date of authorisation will only be accepted in exceptional circumstances and authorised by Dean of School and Director/Head of Department. All expense claims should be submitted prior to the year end process to ensure spend is reflected in the annual financial accounts. The Staff Expenses policy sets out the types of expenses that can be claimed. This policy complies with P11d dispensation as issued by HMRC. As a result of this no tax is deducted from expenses payments. Personal membership of professional bodies will not be reimbursed by the University. Subscriptions and memberships will be paid where it is deemed by the Director of Finance that membership is necessary for a particular function of the University Estimates and Provisions Where the exact amount of a liability cannot be determined the Director of Finance will ensure that a prudent estimate is made and recorded as a provision in the University s financial statements. 20 Financial Regulations