Financial Regulations

1       Background

1.1

The College is a statutory corporation under the Royal Holloway and Bedford New College Act 1985. The objects of the College are to promote education, scholarship and research. For these purposes the College may employ staff, make arrangements with any other body and do anything incidental or conducive to attaining the objects (Section 6). The College, and any institution established for or in connection with the College and administered by it or for it, is an exempt charity for the purposes of the Charities Act 1960 (Section 15). This does not apply to Royal Holloway Enterprise Limited which has been established as a wholly owned subsidiary to carry on business as a general commercial company. The Act empowers the College to make, and amend, necessary regulations for the purpose of carrying out the objects of the College (Section 8).

1.2

The Financial Memorandum between the Higher Education Funding Council for England (HEFCE) and the College sets out the terms and conditions on which grant is made (Appendix A of this document, not available on the web site). The College Council is responsible for ensuring that conditions of grant are met. As part of this process the College must adhere to the HEFCE Memorandum of Assurance and Accountability which requires it to have sound systems of financial and management control. The financial regulations of the College form part of this overall system of accountability.

2       Status of financial regulations

2.1

This document was approved by Council on 6 July 2016. The Financial Regulations apply to the College and all its subsidiary undertakings. Detailed financial procedures which exemplify these Regulations are published separately in the Financial Procedures, available on the website. Compliance with the Financial Regulations and the associated Financial Procedures is mandatory, and failure to comply may lead to disciplinary action. The staff of the Finance Office are always pleased to assist with queries concerning the Regulations.

2.2

Each Head of Department should ensure that staff are made aware of the Regulations.

2.3

All money held in the College's accounts, regardless of how generated, shall be subject to these Financial Regulations.

2.4

All amounts quoted in the Regulations are deemed to be VAT exclusive.

3       Financial control and the regulatory framework

 

3.1

The Council

3.1.1

The Council's role is to set the strategic direction of the College, and through the receipt of reports from its committees and officers, to be assured that its day to day operation is proceeding satisfactorily. The Council ensures that the College is governed in accordance with its Statutes and Regulations, the Statutes and Ordinances of the University of London, and under the terms of HEFCE Memorandum of Assurance and Accountability All members of the Council have equal status, rights, powers and duties and share collective responsibility for all the acts and decisions of the Council subject to the limitation of the participation of student members in respect of reserved areas of business, specified in the College statutes.

3.2

Committee Structure

3.2.1

The Finance Committee is responsible to Council for the supervision of the College's finances, including the approval of estimates and the review of the Annual Accounts, and for considering all financial issues that may arise. 

3.2.2

The Audit and Compliance Committee is responsible to Council for ensuring satisfactory audit arrangements are in place, reviewing audits and receiving reports from the internal and external auditors, and that procedures are followed that promote economy, efficiency and effectiveness. The Investment Sub-Committee is responsible to the Finance Committee for the strategic management of the investments of the College and its subsidiary undertakings and related bodies, and may seek external advice and employ managers for the investment of funds. 

3.2.3

 

The Planning and Resources Committee is the principal management body to oversee the development of and monitoring of the College strategy and functional plans.  Within the framework set by Council, the Committee allocates resources in support of plans including operating budgets, capital or physical resources.  The Committee approves an Estate Master Plan, Estates Strategy and the broad allocation of space to activities.  The Committee is responsible for formulating, reviewing and updating an overall rolling 5 year strategic plan which is subject to approval by the Finance Committee and Council.

3.2.4

On behalf of the Planning and Resources Committee, the Strategic Projects Committee provides management insight of individual systems and process improvements project boards to ensure that projects are proceeding to plan, budget and timescale and that remedial action is taken as required. 

3.3

Audit Requirements

3.3.1

Internal Audit

3.3.1.1

The internal audit service is responsible for providing the Council, the Principal and senior management with assurances on the adequacy of all control arrangements.

3.3.1.2

Internal Audit reports on a day to day basis to the Secretary to Council, and has the right of direct access to the Chairman of Council, the Chairman of the Audit and Compliance Committee and the Principal. The Internal Auditor has the right of access to all the College's records and assets and to receive such explanations as are necessary, in order to meet his or her responsibilities.

3.3.1.3

Details of proposed changes to financial and other management information systems and procedures must be provided to the internal audit unit.

3.3.2

External Audit

3.3.2.1

The external auditors are appointed annually by the Council, on the recommendation of the Audit and Compliance Committee.

3.3.2.2

The primary duties of the auditors are to certify that;

  1. The Financial Statements give a true and fair view of the affairs of the College and of its income and expenditure.
  2. Specific funds, grants and income have been applied only for the purposes for which they were received.
  3. Income has been applied in accordance with the College's statutes, and, where appropriate, with the HEFCE Memorandum of Assurance and Accountability.

3.3.2.3

The external auditors have the right of access to all the College's records and assets and to receive such explanations as are necessary, in order to meet their responsibilities.

 3.3.3

Other Auditors

3.3.3.1

The College may from time to time be subject to audit or investigation by external bodies such as HEFCE, National Audit Office, European Court of Auditors and HM Revenue and Customs. These bodies have the same rights of access as external and internal audit.

4       Responsibilities

 

4.1

 

The Principal

4.1.1

The Principal is the College's designated accounting officer, and is accountable for the financial administration of the College's affairs.

4.2

The Chief Financial Officer

4.2.1

The Chief Financial Officer is responsible to the Principal for the management, organisation and administration of the Finance Department.

4.2.2

The Chief Financial Officer is responsible to the Finance Committee for:-

  1. the preparation of annual budgets and financial plans
  2. the preparation of annual accounts and other financial statements which are required to be submitted to other authorities
  3. the provision of professional advice on College matters including financial control and internal check
  4. the integrity of financial records and systems
  5. the supervision and control of all accounting arrangements, including the approval of all official College financial documents
  6. the provision of a financial management service to govern, manage and regulate
  7. thefinances and accounts of the College, including budgetary control, assets, investments, insurance and financial resources generally.

4.3

Heads of Department and Senior Officers

4.3.1

Heads of Department and Senior Officers are responsible to the Principal for financial management in their own areas. They are advised by the Chief Financial Officer in executing their financial duties. The financial systems operating within their departments including the form in which accounts and financial records are kept should be in accordance with the requirements of the Chief Financial Officer.

4.3.2

Heads of Departments and Senior Officers are responsible for establishing and monitoring clear lines of responsibility within their department for all financial matters.

4.3.3

Where resources are devolved to budget holders, they are accountable to their Head of Department for their own budget.

5       Budgeting and accounts

 

5.1

Resource Allocation

5.1.1

The Planning and Resources Committee is responsible to Council for the allocation of all academic and non academic resources.

5.2

Budget Preparation

5.2.1

The Chief Financial Officer is responsible for preparing annual revenue budgets and a capital programme for consideration by the Finance Committee and Council. Such plans should be consistent with the College's longer term financial plans prepared and updated annually by the Chief Financial Officer.

5.3

Budgetary Control

5.3.1

The control of income and expenditure within an agreed budget is the responsibility of the designated budget holder who is responsible to his/her Head of Department for the efficient, economic and proper management of College resources and opportunities.

5.3.2

The Chief Financial Officer is responsible for providing budget holders and appropriate management bodies and committees with management information on a routine and regular basis.

5.3.3

Significant departures from agreed budgetary targets must be reported immediately to the Chief Financial Officer.

5.3.4

The advice of the Chief Financial Officer must be sought regarding any proposed financial commitment that cannot be met from within the budget allocation.

5.4

Carrying Forward of Balances

5.4.1

Academic department and certain academic and support service non staff credit or debit balances are carried forward from one financial year to another.

5.4.2

An overspending is the first charge on the allocation for the following financial year. An overspending (excluding commitments) shall not exceed 10% of the year's allocation.

5.4.3

The Chairman of the Departmental Grants Group may recommend to the Finance Committee a reduction in the underspending to be carried forward. Other balances may be carried forward with the approval of the Chief Financial Officer.

5.5

Preparation of Accounts

5.5.1

The Chief Financial Officer is responsible for the preparation and publication of the College's audited annual consolidated financial statements for the year ending 31 July within the required timescale. The consolidated statements consolidate the financial statements of the College and its subsidiary undertaking(s).

5.6

Accounting Policies

5.6.1

The accounting policies applied to the financial statements are based on the Statement of Recommended Practice for Accounting in Higher Education Institutions.

5.7

Accounting Returns

5.7.1

The Chief Financial Officer is responsible for consolidating and despatching financial returns and other periodic financial reports to the Funding Council and other agencies as required.

5.7.2

The accuracy of accounting records is the responsibility of budget holders, who should ensure the correct coding of income and expenditure.

5.7.3

The retention of financial documents within the College should be in accordance with the requirements of the Chief Financial Officer.

5.8

Accounting Returns

5.8.1

The accuracy of accounting records is the responsibility of budget holders, who should ensure the correct coding of income and expenditure.

5.8.2

The retention of financial documents within the College should be in accordance with the requirements of the Chief Financial Officer.

6       Income


6.1

General

6.1.1

The Chief Financial Officer is responsible for ensuring that appropriate procedures are in operation to enable the College to receive all income to which it is entitled. All receipt forms, invoices, tickets or other official documents in use must have the approval of the Chief Financial Officer.

6.1.2

The Chief Financial Officer should be notified of the moneys due in respect of the lease, rent or sale of College property, contract research, services rendered and goods supplied.

6.2

College Invoices

6.2.1

All requests for moneys due to the College should be rendered promptly on official College invoices.

6.3

Receipt of Income

6.3.1

All cash and cheques received should be deposited with the Finance Office intact on the day of receipt unless other specific arrangements have been agreed with the Chief Financial Officer.

6.3.2

The recording of income received and any subsequent transfers from one employee to another, and the issuing of receipts should be in accordance with the requirements of the Chief Financial Officer.

6.3.3

Personal or other cheques must not be cashed out of money received on behalf of the College, neither can payments be disbursed out of receipts.

6.4

The Collection of Debts

6.4.1

Debt control and collection should be in accordance with the requirements of the Chief Financial Officer.

6.4.2

Delayed payment terms, and the writing off of irrecoverable debts of up to £5,000 require the prior written approval of the Chief Financial Officer. The writing off of debts in excess of £5,000 requires the approval of the Finance Committee.

7       Banking

 

7.1

Appointment of Bankers

7.1.1

The Council is responsible for the appointment of the College's bankers on the recommendation of Finance Committee.

7.2

Banking Arrangements

7.2.1

All bank accounts shall be in the name of the College or its subsidiary company.

7.2.2

All arrangements with the bankers, including the opening and closing of accounts, the issue of cheques, the arrangement of direct debits, the transfer of funds and the collection of monies, shall be made by the Chief Financial Officer.

7.2.3

All cheques drawn on behalf of the College must be signed in the form approved by the Finance Committee, and in accordance with the College's specified limits of authority.

8       Research grants and contracts

 

8.1

Applications and Administration

8.1.1

Preliminary discussions with prospective sponsors shall be informal and not commit the College.

8.1.2

It is the responsibility of the applicant and the Head of Department to ensure that prior to submitting a grant application for approval the College's procedures have been followed. Formal applications require the signature of an authorised Officer.

8.1.3

The award of a research grant or contract shall be accepted on behalf of the College by the Principal or his nominated deputy.

8.1.4

The Chief Financial Officer shall maintain all financial records relating to research grants and contracts, and shall initiate all claims for reimbursement.

8.1.5

The grant holder is responsible for the budgetary control of the grant or contract and for ensuring the research is completed within the budget notified by the sponsoring body. The grant holder is required to sign the Statement of Responsibilities before an award can be initiated.  All equipment purchased with grant monies is College property unless explicitly determined by the provisions of the grant.

8.2

Private Consultancies and other Paid Work, Patents and Copyright

8.2.1

Both private consultancy work and other work on behalf of the College are subject to specific College procedures.

8.2.2

The costing, pricing and distribution of income from such work will be done according to the College's guidelines.

8.2.3

The use of funds in the College's Accounts resulting from College outside work by an individual (or individuals) shall require the approval of the Head of Department. In the event that a Head of Department is the originator, the Principal's approval to the disbursement of these funds is required.

9       Expenditure

 

9.1

General

9.1.1

The Chief Financial Officer is responsible for making all payments to suppliers of goods and services to the College, and must approve all payment procedures. Budget holders may not commit the College to non-standard methods of payment, including direct debit arrangements. No individual may authorise a payment to himself or herself. Such payments must be authorised by an appropriate and senior authorised signatory. No individual may authorise the purchase of goods or services for his/her benefit, even if (s)he intends to reimburse the College.

9.1.2

Expenditure is subject to more detailed codes and regulations issued from time to time and published on the College website. There are regulations covering travel and subsistence, the use of an appointed travel agent, telephone and internet costs and the use of suppliers through framework agreements that the College is eligible to use. Detailed purchasing guidance is given on the website. Tendering procedures (other than those required to comply with EU regulations and framework rules) do not apply when an order is made with a supplier through a framework agreement that the College is eligible to use.

9.2

Authority to Incur Expenditure

9.2.1

The Head of Department or other responsible officer is responsible for purchases within the department. Authority to certify orders and invoices for payment from specified budgets may be delegated. Additional authorisation by the Chief Financial Officer.is required in respect of orders and payments in excess of the amounts specified in Appendix C of this document.

9.2.2

The member of staff certifying an invoice for payment must be different from the member of staff authorising the order. If an electronic order is used then the member of staff authorizing an order must be different from the member of staff raising the order.

9.2.3

The Chief Financial Officer shall maintain a register which will specify the delegated arrangements to place orders for a restricted range of supplies by telephone or the internet. Heads of Department must notify the Chief Financial Officer of any change in authority for requisitioners, authorizers and approvers in the finance system using the relevant forms and systems.

9.3

Purchasing

9.3.1

 

Unless otherwise agreed by the Chief Financial Officer, all goods and services shall be ordered using the electronic finance system. The guidance given in the Procurement section of the intranet is considered best practice and should be followed in all normal circumstances.

9.3.2

Heads of Department are responsible for ensuring the observance of the College's requirements in respect of obtaining competitive quotations or tenders and complying with the European Union procurement legislation (detailed in Appendices B and C), and the observance of the more detailed codes and regulations referred to above.

9.3.3

All goods, services and expenditure of a capital nature may be ordered only if there is sufficient approved funding. Each meeting of the Finance Committee shall receive from the Director of Estates a progress report on all current capital projects and a final report in respect of completed projects.

9.3.4

Contracts and tenders in respect of construction related contracts shall be drawn up by the Director of Estates  or the Director of Campus Services  and shall be in accordance with the College requirements

9.3.5

Equipment and other consumables costing in excess of the limits stated in appendices B and C E should be subject to competitive quotations or tenders as specified in appendices B and C.  Where there is good reason for quotations or tenders not to be obtained, a written justification must be submitted to the Chief Financial Officer before an order is placed.  If an exemption to the procurement route is approved, the justification will be included in a report of Procurement Exemptions to the Finance Committee.

9.3.6

Where the lowest quotation or tender is deemed to be not acceptable the written approval of the Chief Financial Officer is required prior to the acceptance of another tender and such exceptions shall be reported to the next meeting of the Finance Committee.

9.4

Payment of Invoices

9.4.1

The procedures for making all payments shall be in a form specified by the Chief Financial Officer.

9.4.2

Unless otherwise specifically agreed by the Chief Financial Officer, and with the exception of invoices matched electronically in the finance system, accounts shall only be paid against invoices which have been certified for payment by the appropriate Head of Department or other authorised signatory, and which are addressed to the College (and not a third party).

9.4.3

Certification of an invoice will ensure that:

  1. the goods have been received, examined and approved with regard to quality and quantity, or that services rendered or work done is satisfactory.
  2. where appropriate, it is matched to the order and that the order numbers agree.
  3. invoice details (quantity, price and discount) are correct
  4. the invoice is arithmetically correct
  5. the invoice has not previously been passed for payment
  6. where appropriate an entry has been made on a stores record or departmental inventory
  7. an appropriate account code is quoted. This must be one of the codes included in the signatory's area of responsibility and must correspond with the types of goods or service described on the invoice.

9.4.4

Certification will be completed online within the electronic workflow of the finance system.

9.4.5

For orders placed using the online purchase to pay system, invoices will be paid without further approval if they agree to the order in terms of value and the goods have been received in accordance with the order. 

9.4.6

Goods receipting will be performed within the system and receipting will confirm that;

  1. The goods have been received, examined and approved with regard to quality and quantity or that services rendered or word done is satisfactory.
  2. They are matched to the order and that the order numbers agree
  3. Where appropriate, an entry has been made on a stores record or departmental inventory.

9.5

Petty Cash

9.5.1

The Chief Financial Officer may authorise an imprest account where necessary for the disbursement of petty cash expenses.

9.5.2

The member of staff granted a float is personally responsible for its safe keeping.

9.5.3

At the end of the financial year, a certificate of the balances held should be completed by the member of staff responsible, and forwarded to the Chief Financial Officer.

9.5.4

Reimbursement supported by receipts or vouchers should be obtained from the Chief Financial Officer, before the total amount has been expended, in order to retain a working balance pending receipt of the amount claimed.

9.5.5

The following payments must not be paid from petty cash:-

  1. Any item over £20, unless there is prior approval from the Chief Financial Officer
  2. cashing of personal cheques
  3. payment of salaries or wages, or overtime or other ad hoc remuneration
  4. staff travelling or subsistence
  5. gifts, gratuities or donations
  6. payments for non business use of goods and services.

10     Salaries, wages and expenses payments

 

10.1

General Procedures

10.1.1

The Director of Human Resources is responsible for maintaining the College's establishment record, and for issuing all contracts of employment.

10.1.2

It is the responsibility of the Director of Human Resources to ensure that appropriate systems and procedures are put in place and operated to cover all matters affecting appointments and cessations of appointment and all other adjustments affecting pay.

10.1.3

Overtime and other variations to pay shall be authorised in accordance with the appropriate procedures.

10.1.4

The Chief Financial Officer is responsible for all payments of salaries and wages which shall be through the College payroll and for the proper keeping of all records relating to payroll. All payments must comply with HMRC regulations.

10.1.5

Payments shall be paid directly into the employee's bank account on a monthly basis.

10.1.6

The Chief Financial Officer is responsible for payments to non-employees and pensioners and for informing the appropriate authorities of such payments.

10.1.7

Heads of Departments shall provide promptly to the Director of Human Resources all information (including absence through sickness or other reasons) required to ensure correct payment. The Director of Human Resources is responsible for keeping the Chief Financial Officer informed of all matters relating to personnel for payroll purposes.

10.2

Superannuation

10.2.1

 

The Council is responsible for undertaking the role as employer in relation to all superannuation matters.

10.2.2

The Chief Financial Officer is responsible for day to day superannuation matters including the payment of contributions to authorised superannuation schemes and the preparation of returns to the schemes.

10.3

Travel, Subsistence and Other Expenditure

10.3.1

All claims for payment of travel, subsistence and incidental expenses shall be completed in a form approved by the Chief Financial Officer and shall comply with the Travel, Subsistence and Personal Expenses Policy and Procedures. All staff using their own vehicles on behalf of the College shall maintain appropriate insurance cover for business use.

10.3.2

Claims by members of staff must be certified by the Head of Department (or the Principal or Dean in respect of Heads of Department). Certification means the journeys were authorised, the expenses properly and necessarily incurred and that the allowances are properly payable by the College.

11      Assets

 

11.1

Land, Buildings, Fixed Plant and Machinery

11.1.1

The Director of Estates and the Director of Campus Services are responsible for the provision of Estates services including the security of all College buildings.

11.1.2

The Director of Estates is responsible for maintaining the College's register of land, buildings, fixed plant and machinery.

11.2

Other Physical Assets

11.2.1

Heads of Departments are responsible for the custody and security of all other College assets within their department. They are responsible for maintaining departmental inventories for all plant, equipment, furniture and stores in accordance with the requirements issued by the Chief Financial Officer.

11.3

Asset Disposal

11.3.1

Disposal of land and buildings either by sale or lease may take place only with the prior approval of Council. If the asset was acquired with the use of exchequer funds, the consent of HEFCE may also be required. The conditions of the HEFCE Memorandum of Assurance and Accountability shall be complied with.

11.3.2

Disposal of other assets shall be in accordance with the detailed procedures issued by the Chief Financial Officer, and in particular include an appropriate liability exclusion clause.

11.3.3

No charge shall be made on any asset of the College without the prior approval of Council.

11.4

Investments and Treasury Management

11.4.1

The Investment Sub-Committee shall receive regular reports on investment performance, and establish performance objectives.

11.4.2

The Chief Financial Officer shall maintain records of investments and ensure safe custody of all relevant documents.

11.4.3

The Chief Financial Officer is responsible to the Finance Committee for the proper day to day investment of short term funds with approved organisations.

11.4.4

A treasury management policy statement setting out its strategy and procedures shall be adopted by the College and its implementation and monitoring shall be the responsibility of the Finance Committee.

11.4.5

All money in the hands of the College shall be aggregated where possible or appropriate for the purposes of treasury management, except in the case of endowment funds where the provisions of the endowment provide otherwise.

11.4.6

All executive decisions on borrowing, investment or financing shall be delegated to the Chief Financial Officer and designated staff, who shall all be required to act in accordance with the College's treasury management policy statement.

11.4.7

The College must obtain the prior consent of the HEFCE a) to any borrowing which is to be secured on publicly funded assets, and b) to any borrowing which would cause the annualised servicing costs to exceed the amount allowed in the Memorandum of Assurance and Accountability.

11.4.8

The Chief Financial Officer shall report regularly to the Finance Committee on the activities of the treasury management operation and on the exercise of delegated treasury management powers. One such report shall comprise an annual report on treasury management.

12      Other

 

 

12.1

Companies

12.1.1

The Finance Committee is responsible for approving the establishment of companies wholly or partly owned by the College and the procedures to be followed in order so to do.

12.1.2

The structure of the company, including the shareholding arrangements and the constitution of the Board of Directors, requires the prior approval of the Finance Committee.

12.1.3

The company must submit an annual report to the Council via the Finance Committee.

12.2

Insurance and Risk Assessment

12.2.1

The Director of Strategic Development is responsible for developing a risk management strategy in order to identify the risks facing the College and types of protection required to cover these risks.

12.2.2

The Chief Financial Officer is responsible for the College's insurance arrangements and shall keep a register of all insurances. The negotiation of insurance cover and the submission of claims are the responsibility of the Chief Financial Officer.

12.2.3

Heads of Department and budget holders shall give prompt notification to the Chief Financial Officer of any potential new risks and additional property and equipment which may require insurance, and any incidents, problems or alterations affecting existing risk. They shall advise the Chief Financial Officer, immediately, of any event which may give rise to an insurance claim.

12.2.4

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

12.2.5

All staff using their own vehicles on behalf of the College shall maintain appropriate insurance cover for business use.

12.3

Taxation

12.3.1

The Chief Financial Officer is responsible for the provision of advice on all taxation issues, and shall issue instructions, maintain records and submit returns in accordance with statutory requirements.

12.4

Gifts, Donations and Benefactions

12.4.1

The Chief Financial Officer is responsible for maintaining financial records in respect of gifts, benefactions and donations made to the College, and initiating claims for recovery of tax where appropriate.

12.5

Security

12.5.1

Heads of Department are responsible for maintaining appropriate security procedures at all times for all buildings, stocks, furniture and other College assets under their control. He or she shall consult the Director of Campus Services in any case where security is thought to be defective or where it is considered that special security arrangements may be needed.

12.5.2

The Director of Information Technology is responsible for maintaining the physical integrity of information stored on central College systems.

12.5.3

All users of computing facilities are required to use authorised software only and be familiar with and follow software licence conditions. Users should abide by the College's information security policy.

12.6

Tuition Fees, Short Courses and Services Rendered

12.6.1

Tuition fees shall be set by the Finance Committee.

12.6.2

Any member of staff wishing to run a short course must have the permission of the Head of Department. The course must be costed and approved in accordance with the College's requirements.

12.6.3

Similarly, the costing and pricing of services (including testing and analysis of materials, components and other laboratory services) must be in accordance with the College's requirements.

12.7

Gifts and Hospitality

12.7.1

The acceptance of gifts and hospitality is subject to the requirements issued by the Secretary to Council and published on the intranet . Gifts and hospitality received should be recorded in a departmental Hospitality/Gift book.

12.7.2

Expenditure incurred in entertaining guests of the College from outside bodies should be in reasonable proportion to the purpose and nature of the event.

12.7.3

Hospitality should not be accepted if substantially in excess of that which the College is likely to provide in return.

12.8

Students' Union

12.8.1

The Students' Union is a constituent part of the College and as such is responsible to the Council, which shall determine the level of annual grant payable to the Union.

12.8.2

The Students' Union is responsible for maintaining its own bank account and financial records, and for preparing its annual accounts in accordance with the principles stipulated by the Council.

12.8.3

The Union's annual accounts will be audited by a firm of auditors approved by the College and will be reported to Finance Committee.

12.8.4

The College's Internal Auditor and external auditors shall have access to records, assets and personnel within the Students' Union in the same way as other areas of the College.

12.9

Use of the Seal

12.9.1

The Secretary to Council is responsible for the safe keeping of the seal, and its use, in accordance with the Statutes and Council Regulations.

12.10

Security of Documents

12.10.1

Other than as set out above, the Secretary to Council is responsible for the safe-keeping of official and legal documents relating to the College. Signed copies of deeds, leases, agreements and contracts must, therefore, be forwarded to the Secretary to Council. All such documents shall be held in an appropriately secure, fireproof location and copies held at a separate location.

12.11

Welfare Funds

12.11.1

The Principal has power to make grants or loans to students for their welfare as he or she judges.

12.11.2

The Student Financial Adviser may make small short term loans from the Principal's discretionary fund to students with minor financial problems.

12.12

Disclosure of Fraud and Irregularity

12.12.1

Any employee of the College who becomes aware or suspects any form of financial irregularity shall inform their Head of Department and the Chief Financial Officer.

12.12.2

A member of Council who becomes aware or suspects any form of financial irregularity shall inform the Secretary to Council and the Chief Financial Officer.

12.12.3

In all cases the Chief Financial Officer will inform the Internal Auditor, but where a financial irregularity appears to involve a criminal act and/or a disciplinary offence the Chief Financial Officer shall also report the matter to the Principal, who shall take whatever disciplinary action is appropriate, and who shall report to the Chairman of the Finance Committee and the Chairman of the Audit and Compliance Committee.

12.12.4

A financial irregularity occurs, inter alia, where;

  • an employee or some other person obtains money or property due to or belonging to the College to which he or she is not lawfully entitled, whether or not the Financial Regulations are otherwise complied with; or
  • an employee, purporting to act on behalf of the College, obtains money, property or other benefit illegally from a third party; or
  • the financial procedures and Regulations prescribed for the protection of the College are not complied with, whether or not the College suffers any financial or other disadvantage.

12.13

Disclosure of Interest

12.13.1

Employees shall advise their Head of Department of paid work additional to their College employment, and the prior approval of the Principal shall be obtained.

12.13.2

Members and senior officers are subject to the specific requirements detailed in the Regulations of the Council.

12.13.3

All staff and members of College committees shall inform the Secretary to Council of;

  • any interest, financial or otherwise which they have in a business which has or may have a relationship with the College
  • any interest, financial or otherwise, which a partner or close relative has in any financial arrangement with the College
  • any matter which might reasonably be perceived by others to impact upon impartiality.

Appendices

 

A

Appendix A

A.1

Authorisation and Certification of Orders and Expenditure

A.1.2

A.1.3

Notes

A.1.4

"Responsible Officers" may reasonably delegate within their Department.

A.1.5

Items above the limits must go to the Chief Financial Officer for countersignature by a senior member of the Finance Department before the order/commitment is despatched. Similarly requests for payment above the limits will be passed to the Chief Financial Officer.

A.1.6

Responsible Officers shall authorize delegated authority levels within the finance system.

A.1.7

Senior Officers are: Registrar and Director of Operations, Secretary to Council, Academic Registrar, Director of Estates, Director of Campus Services, Director of Human Resources, Director of Research and Enterprise, Director of Royal Holloway International, , Director of Information Technology, Director of Strategic Development, Director of External Relations, Faculty Deans, Chief Financial Officer.and equivalent senior managers.

A.1.8

The limits above are exclusive of any applicable VAT.

B

Appendix B

B.1

European Union Procurement Requirements

B.1.1

EU procurement regulations apply to written contracts for all forms of procurement or hire with a total value exceeding a threshold value.  The prevailing thresholds are published on the Procurement pages of the intranet.

B.1.2

The regulations include the requirement to invite tenders from the whole of the EU, for instance by advertising in official journals, and due allowance should be made for the time period likely to be required to fulfil the regulations. The regulations require the aggregation of orders to determine if the thresholds apply.

B.1.3

The limits above are exclusive of any applicable VAT.

C

Appendix C

C.1

Tendering and Quotation

C.1.1

These limits apply to the total supply of the good or service, which may be over a period of a year or more

C.1.2

For orders up to £5k, best prices are to be used after comparing various suppliers;

C.1.3

For orders between £5k and £20k, three comparable quotes are to be obtained by phone, fax and/or catalogue, and a record of the quotes retained;

C.1.4

From £20k to £50k, three written quotes are to be obtained;

C.1.5

For orders over £50k sealed tenders are required; three if the price is up to £75k and five if it is over £75k but below the current EU threshold.

C.1.6

Quotations and tenders shall be retained for at least six months after the end of the financial year for which they were sought.

C.1.7

A permanent record shall be kept of any tender process

C.1.8

Emergency action shall be documented and reported to the Finance Committee.

C.1.9

The procedures shall also be subject to any rules or requirements of HEFCE or other relevant body, and EU Purchasing Regulations must be followed.

C.1.10

The limits above are exclusive of any applicable VAT.

C.1.11

These procedures need not be applied in the following circumstances:

  • the supply arises from a framework agreement that the College is eligible to use  
  • the supply is of such specialised nature that, in the view of the budget holder endorsed by the Chief Financial Officer, normal competitive tendering is inappropriate but subsequent report of the purchase shall be made to the Finance Committee;
  • the supply of architects or consultancy services where in the view of the Director of Estates endorsed by the Chief Financial Officer, normal competitive tendering is inappropriate, but subsequent report of the appointment shall be made to the Finance Committee the supply is to be financed from an external source which agrees alternative methods;
  • there is an exception specifically approved by the Finance Committee.

C.1.12

A framework agreement is a general term for agreements with suppliers which set out terms and conditions under which specific purchases (call-offs) can be made throughout the term of the agreement. There are generally no guarantees or commitments given as to the value of work commissioned and the college may only use them if they are entitled to as a named commissioning organization.

C.2

Tendering Arrangements

C.2.1

Tender Opening

C.2.1.1

Tenders will normally be placed via the College’s electronic tendering system, currently ‘Intend’,  and are opened by procurement managers from the Central Procurement Unit remotely at their PCs, providing there is oversight of the system available to Audit and the Secretary to Council’s office and to the contract lead on a project by project basis.

C.2.1.2

Sealed paper-based tenders must be agreed in advance with the Assistant Director – Procurement as a valid procurement methodology.  Where agreed they  must be returned to the Secretary to Council, and opened in the presence of the Secretary to Council or a representative, an officer of the ordering department and, if the estimated value is in excess of £200k , a representative of the Chief Financial Officer

C.2.2

Tender opening where there are insufficient tenders:

C.2.2.1

The advice of the Secretary to Council must be sought. In addition the agreement of the Chief Financial Officer is required if only one tender is received when three are required. The agreement of the Chief Financial Officer is required if one or two tenders are received when five are required. A record of the agreement to accept fewer than the required number of tenders should be retained in all cases.

C.2.3

Post tender negotiations

C.2.3.1

Where it is necessary to conduct post tender clarifications with tenderers, full documentation should be retained. Should the negotiations be limited to selected tenderers the reasons should be recorded and retained.

 

 

 

 

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06/12/2016