Transcript Financial Regulations and Procedures

Financial Regulations and
Procedures
Research Support Conference
21 June 2011
Finance Directorate
Why have them?
• Set out how financial transactions should be
handled across the University.
• Essential for good financial management.
• Required both by University Ordinance VIII and
our funding bodies and regulators.
• These include HEFCE, TTA, the UK Research
Councils, National Audit Office and Parliament
and HM Revenue and Customs
• Funding Council Grants: 2009/10: £209 million
• Includes HEFCE Research funding: £83 million
• Total University Income: £788 million
Finance Directorate
Research Income
• Research Grants and Contracts: 2009/10
Research Councils
£76 million
UK Charities
£44 million
UK Government and NHS £39 million
UK Industry & Commerce £14 million
Overseas and Other
£22 million
Total Research Income
£195 million
~25 per cent of total University Income of £788 million
Finance Directorate
Research Councils UK
• Extracts from Terms and Conditions:
“The Research Organisation must ensure proper financial
management of grants and accountability for the use of public
funds.” (GC1)
“Under no circumstances may Directly Incurred and Exceptions
funds be used to meet costs on any other grant or activity.” (GC3)
“The procurement of equipment, consumables and services,
including maintenance, must comply with all relevant national and
EU legislation and the Research Organisation’s own financial
policy and procedures.” (GC11)
Finance Directorate
What are they?
• Financial Regulations
 General Principles
 High level rules
 Responsibility, authority and accountability at
Director level
• Financial Procedures
 More detailed
 Responsibility, authority and accountability at a
lower level
 Apply to all University staff and spending,
including all subsidiaries and research
expenditure.
Finance Directorate
Who decides?
• Financial Regulations have precedence
over Financial Procedures.
• Financial Procedures take precedence
over any local guidelines, rules etc.
• Apply to all University staff and all
spending, irrespective of source of funds.
• Financial Regulations set by the Board.
• Financial Procedures set by the Finance
Committee.
Finance Directorate
Expenditure
• All University expenditure must be:
For bona fide University purposes
Approved by the correct budget holder
Have budget provision available: income
must cover the budget
• Applies to all forms of expenditure:
Invoices, Petty Cash, Credit Card, Expenses
All sources of funds
Includes Research Grants and Contracts
Finance Directorate
Financial Regulations and
Procedures
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New versions approved in 2008 and 2010
Simplified wording and easier to use
External bodies impose rules
Aim to balance good internal control with
flexibility.
• Changes made in 2010 to:
Incorporate new Procure to Pay system
Improve management of travel expenditure
Finance Directorate
Where are they?
• The Financial Regulations and Financial
Procedures are both on the web-site.
• On Finance Directorate intranet site:
www.staffnet.manchester.ac.uk/services/finance
• Also a link from Policies and Procedures
section of University web-site:
http://documents.manchester.ac.uk/listofpolicies.aspx
• Can be downloaded (pdf files).
Finance Directorate
Code of Conduct
• Included in University Ordinance XVlll.
• Applies to all University staff.
• Seven principles of behaviour from the
Nolan Committee Report on Standards in
Public Life:
Selflessness, Integrity, Objectivity,
Accountability, Openness, Honesty, and
Leadership.
Finance Directorate
Possible Conflicts of Interest
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Some examples of a significant conflict of
interest:
Award of a contract to another organisation in
which an employee has an interest and from
whom they may receive a financial benefit;
Employment by the University of a spouse,
partner or other close family member of an
employee.
Any action by the University that may
materially affect the value of any land,
property, patent, shareholding or other asset
owned by an employee or their family.
Finance Directorate
Managing Situations
• Each School must have a Register of Interests.
The Registers are maintained by Heads of
Schools and Registrar and Secretary.
• Staff who have a significant conflict of interest
must declare this to the Head of School without
delay, and record it in the Register of Interests.
• Must withdraw from all involvement in decision
taking relating to the matter.
• In particular, no person shall be a signatory to a
University contract where he or she also has an
interest in the activities of the other party.
Finance Directorate
Procurement Issues
• Any personal interest that might
compromise impartiality must be declared
in the Register of Interests.
• Personal inducements to employees from
suppliers are not allowed.
• All incidents of inducements being offered
must be reported immediately to the
Procurement Manager and the Registrar
and Secretary.
Finance Directorate
Any Questions?
• Financial Regulations and Procedures
Laurence Clarke – ext 52139
[email protected]
• Payroll, Fees and Expenses
Lisa Boylin, Operational Payroll Manager –
ext 52128
[email protected]
• Procurement
Kevin Casey – ext 52160
[email protected]
Finance Directorate