ST GEORGE S, UNIVERSITY OF LONDON FINANCIAL REGULATIONS 0
ST GEORGE S, UNIVERSITY OF LONDON FINANCIAL REGULATIONS 1 Introduction 2 Council, Executive and Finance Committee 3 Officers 4 Budget Holders 5 Annual Financial Statements and Accounting Records 6 Budgets 7 Banking Arrangements 8 Income and Expenditure 9 Investments and Trust Funds 10 Audit 11 Research Grants and Contracts 12 Assets and Property 13 Borrowing and Lending 14 Purchasing 15 Salaries, Wages and Staff Benefits 16 Private Practice 17 Insurance 18 Intellectual Property and Intellectual Property Rights 19 Companies and Commercial Activities 20 Student Club 21 Disclosure of Interest 22 Extent of Regulations 1
1 Introduction ST GEORGE S UNIVERSITY OF LONDON FINANCIAL REGULATIONS 1.1 These financial regulations set out the provisions for the management of all of the finances related to SGUL. They have been approved and adopted by the Council of SGUL ( the Council ) and are subject to the terms of SGUL Scheme. 1.2 The regulations apply to all SGUL staff and members of Council in regard to their dealings with SGUL 2 Council, Strategic. Planning and Resources Committee (SPARC) and Finance Committee 2.1 The Council has the overall responsibility for SGUL s financial management. It appoints from among its members, a Treasurer who is responsible for advising the Council on the management of the finances of SGUL. 2.2 The Strategic, Planning and Resources Committee (SPARC) reports to the Council on planning and allocation aspects of SGUL s financial management, 2.3 The Finance Committee ( the Finance Committee ) is the committee of the Council responsible for reporting to the Council on accountability and control aspects of SGUL s financial management. 3 Officers 3.1 The Principal is the academic and administrative head of SGUL and is responsible to the Council and to the Higher Education Funding Council for England (HEFCE) as Chief Accounting Officer for the expenditure of funds within the Institution. 3.2 The SGUL Director of Administration is responsible to the Principal for the general administration of SGUL including its general financial management. 3.3 The Director of Finance is responsible to the Director of Administration and Principal for reporting the management of SGUL s finances including subsidiary and related charities. 2
4 Budget Holders Responsibilities 4.1 Heads of Divisions. ( Budget Holders ), are allocated budgets 4.2 Those members of the academic or related staff awarded research grants or contracts shall also be deemed to be Budget Holders as provided for in Financial Regulation 11.1. 4.3 Divisions or members of divisions may obtain funds because of their personal work. These funds will be held in Discretionary Accounts and each account will have a budget holder. Discretionary accounts must always be in surplus and interest will not be payable on these balances. 4.4 Budget Holders are responsible to the Principal or Head of Department as appropriate, for the control of their budgets and for the financial administration of their areas of responsibility. Budget holders receive annual notification of budgets from the Director of Finance 5 Annual Financial Statements and Accounting Records 5.1 The financial year is 1 August to 31 July. The Director of Finance will prepare annual financial statements for presentation to SGUL Council and its relevant committees and shall provide instructions to Budget Holders on end of year procedures. 5.2 The Director of Finance shall maintain the financial records and accounts of SGUL. 5.3 The Director of Finance shall maintain such analysis of income and expenditure as is appropriate for the management and financial control of current and planned activities. 5.4 The Principal, Director of Administration and the Director of Finance shall have access to all information relating to the financial management of SGUL. 6 Budgets 6.1 Budget Holders shall, if required by SPARC and Finance Committee, prepare plans and estimated costs for the activities of their departments and submit them for approval. 6.2 The Director of Finance shall keep under review all forecasts of income and expenditure and shall regularly provide each Budget Holder with management information about income and expenditure. 3
6.3 Budget Holders shall manage their activities within their annual budgets. They are authorised to incur recurrent expenditure (apart from the appointment of staff) within approved budgets. They shall not make commitments, which would lead to a budget being exceeded without the prior approval of the Director of Finance, who will refer any exceptional cases to SPARC. 6.4 Budget Holders shall inform the Director of Finance of any matters involving a potential resource commitment not otherwise covered by the Financial Regulations; this applies particularly to any circumstances which may affect the ability to keep within the approved budget. 6.5 Budget Holders must ensure that the Director of Finance has an effective opportunity to comment at an early stage on the financial implications of projects or schemes, which involve significant resource commitments. 6.6 Budget Holders shall ensure that the income and expenditure transactions are allocated to the appropriate activity and accounts. 6.7 Budget Holders must seek approval from the Principal who will take such advice as is considered appropriate before any new members of staff are appointed, or their terms of employment changed so as to increase the cost to SGUL 7. Banking Arrangements 7.1 SGUL s banking arrangements shall be determined by the Finance Committee from time to time. All arrangements with SGUL s bankers concerning SGUL s bank accounts shall be made by the Director of Finance on the authority of the Finance Committee. 7.2Divisions or individuals may not operate separate bank accounts for funds for which SGUL is accountable. 7.3Budget Holders shall deposit at SGUL Cashier s office or if agreed at the SGUL s bankers, at least once a week all moneys (whether cash, cheques or otherwise), which they have received and will provide details of the amounts banked. All cheques should be made payable to SGUL. All moneys, including cash, must be deposited and personal cheques may not be substituted for cash. 7.4The Director of Finance shall be responsible for the security and banking of all funds received by the Cashier s office. 4
8 Income and Expenditure 8.1The Director of Finance is responsible for ensuring that appropriate procedures are in operation for the receipt of all moneys paid or payable to SGUL and for the payment of moneys due from SGUL. 8.2The Director of Finance will ensure that there is a review every 3 years and an appropriate appointment process for financial advisers to SGUL including banking, insurance, external and internal audit, investment services, legal and any other service of a financial nature. 8.3Major expenditure of a non-recurrent nature on the construction, adaptation or purchase of property may only be incurred with the prior approval of the Council 8.4Items of equipment costing more than 30,000 and approved by the Equipment Users Committee may be purchased only with the prior written approval of the Director of Finance. 9 Investments 10 Audit 9.1The Investments Committee is responsible to Council for the investment of the any funds identified by Finance Committee as available for long term investment and the trust funds of SGUL. 9.2The Director of Finance is responsible for maintaining records of investments, for ensuring safe custody of all relevant documents and for reporting investment performance regularly to the Investments and Finance Committees. This may be achieved through the appointment of appropriate external organisations. 9.3The Director of Finance is responsible for providing regular cashflow forecasts. 9.4The Director of Finance is responsible for maintaining a record of the objects of each trust fund. 10.1 The Audit Committee will recommend to Council for appointment suitably qualified organisations to act as Internal and External Auditors to SGUL. 10.2 External Auditors will audit the annual financial statements prepared by the Director of Finance and shall provide a certificate as appropriate. 5
10.3 The Audit Committee determines the scope of internal audit and will report to the Council. 10.4 The External Auditors and Internal Auditors shall have the right of access to any of the books, records, accounts and vouchers of SGUL and are entitled to such information and explanation as may be necessary for the performance of their duties. 10.5 The External Auditors detailed comments on the accounts will be submitted annually to the Audit and Finance Committees. 10.6 None of the members of the Audit Committee shall be members of the Finance Committee, and the Chair of the Audit Committee shall be a lay member of Council. 11 Research Grants and Contracts 11.1 Members of the academic or academically related staff who are awarded research grants and contracts shall upon the award of such grants or contracts be deemed to be Budget Holders in respect of the funds paid under such grants or research contracts and shall be subject to these Financial Regulations in that capacity. 11.2 All applications for grants and contracts must be signed by the Budget Holder and countersigned by the Director of Administration or other appropriate administrative officer and must have previously been checked by the Director of Finance to ensure that the financial details (including salary scales) are correct. The Director of Finance is responsible for ensuring that provision has been allowed for overhead support as laid down by the Finance Committee and that any implications for use of internal resources have been assessed and approved. 11.3 Holders of research grants and contracts shall ensure that contracts involving trials on volunteers or patients receive proper authorisation in advance from the relevant Ethics Committee and that the requirements of the Ethics Committee are followed, including, where necessary, the obtaining of consent forms. The contracting parties shall sign a form of indemnity, in a format acceptable to the Council. 12 Assets and Property 12.1 The Director of Administration shall keep a register of all rights and titles to real property and shall ensure the safe custody of title deeds and associated documents. 12.2 The Director of Finance shall keep a register of all financial investments and shall arrange the safe custody of certificates and similar documents. 6
12.3 The Director of Administration shall be responsible to the Principal for SGUL property in accordance with policies laid down by the Council. 12.4 SGUL s Director of Estates is responsible to the Director of Administration for ensuring that all SGUL buildings are adequately maintained and for the preparation of a plan and of annual estimates of the costs of repair and maintenance of SGUL property. 13 Borrowing and Lending 13.1 The Finance Committee shall approve all SGUL borrowing. 13.2 Budget Holders shall not borrow or lend money on behalf of SGUL. 13.3 Budget Holders may only lease equipment with the permission of the Director of Finance. 14 Purchasing 14.1 Budget Holders must endeavour to obtain goods and services in accordance with SGUL's Purchasing Policy ensuring proper authorisation for expenditure and compliance with regulations. 14.2 Budget Holders will use the order forms supplied by the Director of Finance and will follow the procedures laid down by the Director of Finance. 14.3 Budget Holders shall ensure that the costs of the proposed purchase can be met from within the budget or other approved source before an order is placed. 14.4 Budget Holders shall not issue letters of intent to suppliers to purchase goods or services in excess of a value agreed by the Finance Committee without first obtaining written approval from the Director of Finance. 14.5 All contracts for the regular supply of goods or services shall be signed by the Director of Finance or Director of Administration. 15 Salaries, wages and Staff Benefits 15.1 All members of staff of SGUL shall be paid in accordance with approved salary scales or ranges or with decisions of Remuneration Committee 7
15.2 All letters of appointment and terms and conditions of employment must be issued by the Director of Administration or on the authority of the Director of Administration by the Director of Human Resources or the Director of Finance or the appropriate officer. 15.3 The Finance Committee shall be responsible to the Council for advising on superannuation matters. 16 Private Practice 16.1 Notwithstanding the provisions of Financial Regulation 18, members of the academic staff may retain for their private use examination fees, lecture fees, royalties on books, legal fees and payments for books or invited articles, 16.2 It is a well-recognised practice and of benefit to SGUL that clinical academic staff can see patients privately, and the fees so earned are remitted to the appropriate departmental research fund. SGUL Council will normally allow departments to exercise control within the limits contained within these financial regulations over those fees from private patients remaining in departmental research accounts after personal shares have been deducted. 16.3 Members of the academic staff in full time employment either with SGUL alone or on joint arrangements with St George s Healthcare NHS Trust which together reconstitute full time employment, ( whole time members ), may be paid 50% of any fees from private patients up to a maximum limit of 10% of their gross salary (including distinction award) in any tax year. Any member of staff wishing to be paid this sum must apply to the Director of Finance and should certify that such sum does not exceed the said maximum limit. Such sum shall be paid as an addition to salary. 16.4 All fees from private patients of whole time members shall be collected by SGUL or an appropriate health authority under the same arrangements as those already existing for NHS staff, and if collected by SGUL, shall initially be paid into the appropriate divisional research or discretionary fund. An overhead charge as agreed by the Finance Committee will be deducted by SGUL where SGUL is required to raise invoices or where SGUL space is used. 16.5 Private patients of members of staff may only be seen in the appropriate teaching hospital or in the Medical SGUL. 16.6 All patients seen by clinical academic staff within SGUL for consultation, investigation or treatment must be registered with the Trust and properly documented in the Trust notes. The only exceptions permitted are general practice patients who from time to time attend the Division of Community Health Sciences. 8
17 Insurance 16.7 The Trust rules concerning private patients, including charges for services and the obtaining of medical defence cover shall be followed. 17.1 The Director of Finance shall arrange insurance cover in accordance with the policy laid down by the Finance Committee and shall keep a register of insurances. 17.2 The Director of Finance shall negotiate all insurance claims. 17.3 Budget Holders shall maintain such records for their divisions are required by the Director of Finance for insurance purposes and shall notify the Director of Finance immediately of new items or risks in respect of which insurance cover may be needed. 17.4 Budget Holders shall notify the Director of Finance immediately of any circumstances occurring in their divisions, which could give rise to an insurance claim. 17.5 Budget Holders shall not give an indemnity to any person unless its terms have been approved in writing by the Director of Finance. 18 Intellectual Property and Intellectual Property Rights 18.1 After taking advice from SPARC, Academic Forum and Finance Committee, Council will establish procedures to deal with intellectual property and intellectual property rights. 18.2 All intellectual property and intellectual property rights arising out of work carried out in whole or in part by members of staff in the course of their employment are owned by SGUL which requires members of staff to draw immediately to the attention of SGUL Secretary any such property and rights which come to their notice. 18.3 Members of staff shall not enter into agreements with commercial undertakings in respect of such property and rights without consulting the Director of Administration. While recognising the need for academic staff to publish their findings, SGUL reminds them that premature publication or disclosure of results may prejudice the commercial exploitation of such property and rights. 18.4 Where payments are received by SGUL or its members of staff through the exploitation of such property and rights from whatever source, or from the sale of video film or other records made in SGUL, they shall be delivered, after deduction of any expenses and taxes (if appropriate), between SGUL, the department and the members of staff concerned. The division of such payments after 9
deduction of any expenses and taxes is subject to regular review by the Council after taking advice from SPARC, Academic Board and Finance Committee. The present policy approved by the Council is that income from the exploitation of such property and rights shall be distributed on the following basis: Cumulative Percentage paid to: Income range SGUL Division Member(s) of staff Up to 10,000 10 10 80 10,001-30,000 20 20 60 30,001-50,000 25 25 50 50,001-1,000,000 50-50 Over 1,000,000 70 30 The Council has indicated its intention that the aforementioned distributions shall not be changed retrospectively. 18.5 In the event of dispute between members of staff as to the division of this percentage share the decision of the Principal shall be final. 18.6 Where any such property and rights are subject to an agreement or agreements with a third party and approved by SGUL, the agreement(s) with the third party will take precedence over this Financial Regulation 18 in so far as such agreement(s) are at variance with it. 19 Companies and Commercial Activities 19.1 No company or commercial or charitable enterprise of any kind intended to exploit any activity carried on by SGUL or on SGUL s premises or to exploit any rights belonging to SGUL may be established by any member of staff without the prior written approval of the Council. 20 Student club 20.1 The Student Club shall maintain its own bank account and financial records and prepare its own financial statements in accordance with procedures laid down by the Director of Finance. 20.2 The financial affairs of the Student Club shall be subject to review by the Director of Finance in the same way as those of the departments 10
20.3 The annual financial statements of the Student Club shall be audited by the External Auditors and approved by Finance Committee. 21 Disclosure of Interest 21.1 The Head of Planning and Secretariat Office will be responsible for maintaining a register of interest covering senior officers and members of SGUL Council. 21.2 The Director of Finance will maintain a register of gifts and entertaining for SGUL staff in excess of 10. 22 Extent of Regulations 22.1 If these Financial Regulations do not cover a particular situation or there is uncertainty as to the application, the advice of the Director of Finance or other appropriate officer should be sought. 23 Amendment 23.1 These Financial Regulations may be amended from time to time by the Council. 11