To Gazette No. 4409 (25 July 1996)
The Financial Regulations are included as regulations in the Statutes, Decrees, and Regulations of the University. The Hebdomadal Council, subject to the provisions of the statutes, is responsible for the administration of the University and for the management of its finances and property and has all the powers necessary for it to discharge these responsibilities (Tit. IV, Sect. I, cl. 1). The Curators of the University Chest are responsible under Council for the conduct and supervision of the University's financial business (except that of the Delegates of the Press) and have power to make regulations (Ch. II, Sect. I, 7 § 6, cl. 2).
The primary objective of these regulations is to ensure the proper use of finances and resources in a manner which satisfies the requirements of accountability and internal control and also fulfils any legal or financial obligations as laid down by the Inland Revenue, the Higher Education Funding Council for England (HEFCE), Customs and Excise, and other government authorities. The regulations do not extend to non-financial activities of the University nor are they a definitive statement on the governance of the University.
Copies of the regulations are circulated to the heads of all university departments and institutions and to the secretaries of all university committees and boards which receive and hold funds. It is their responsibility to ensure that those responsible to them are made aware of the existence and provisions of these regulations, and that an adequate number of copies are made available for reference. Those with financial and accounting responsibilities must have their own copies.
Compliance with the Financial Regulations is a requirement for all employees of the University (irrespective of whether their appointment is financed by general university funds, research grants and contracts, or trust or other funds) and for all those not directly employed by the University who have responsibility for the administration or management of university funds.
Additional copies of these regulations may be obtained from the Secretary of the Chest, who should also be contacted for advice if there is any uncertainty as to their application.
A University Financial and Accounting Procedures Manual will also be issued to assist employees and others within the University with financial and accounting responsibilities. This will detail the procedures with which the Curators of the University Chest, the University Audit Committee, and the Internal and External Auditors expect all university employees and those with responsibility for the administration or management of university funds to comply.
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1. These Financial Regulations have been made by the Curators of the University Chest under the power given to them in the Decrees of the University (Ch. II, Sect. I, § 6, cl. 2) and have been ratified by the Hebdomadal Council. The regulations apply to the conduct of all financial business of the University, irrespective of the source of funding. They do not extend to the non-financial business of the University and are not a definitive statement on the governance of the University. The University is a civil corporation, and the structure of its governance is laid down in the Statutes and Decrees of the University. Some of the statutes can be amended only by The Queen in Council. The University is an exempt charity by virtue of the Charities Act 1960.
2. Compliance with the regulations is a requirement for all employees of the Chancellor, Masters, and Scholars of the University of Oxford (other than those responsible to the Delegates of the University Press) and for all those not directly employed by the University who have responsibility for the administration or management of university funds.
3. The staff of the Internal Audit Section will point out any non-compliance they encounter during the course of their work.
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1. The regulations apply to all bodies included in the University's annual audited financial statements including subsidiary companies, the University of Oxford Development Trust, and colleges without independence. They apply to all funds received and held by those bodies from whatever source.
2. The regulations do not apply to those colleges of the University which are independent.
3. The regulations do not apply to the Delegates of the University Press, who have their own internally established financial policies and procedures.
4. Where the Finance Division of the Central Administration or a department or institution or committee or board within the University provides an accounting or other financial service for bodies which are not part of the University, it is acting as a custodian of the funds it is holding and has a duty to exercise the same care as with its own funds. The regulations apply to these funds while the University holds them.
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1. The Secretary of the Chest is responsible for ensuring that copies of the regulations are distributed to the heads all of university departments and institutions and to the secretaries of all university committees and boards which receive and hold funds.
2. The heads of all university departments and institutions and the secretaries of all university committees and boards which receive and hold funds are responsible for ensuring that all members of their institution or department or all those responsible to their committee or board are aware of the regulations and have access to them and that those with financial and accounting responsibilities have their own copies.
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1. Every five years the Secretary of the Chest shall arrange for the regulations to be reviewed and for any proposed changes to be submitted to the Curators of the University Chest for their consideration and for any changes agreed by the curators to be submitted to the Hebdomadal Council for ratification.
2. The Secretary of the Chest may also submit changes to the Curators of the University Chest at any other time for their consideration and arrange for the changes when made by the curators to be submitted to the Hebdomadal Council for ratification.
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1. The Hebdomadal Council, which is composed of members of Congregation elected by Congregation, and ex officio members, is (subject to the provisions of the statutes) responsible for the administration of the University and for the management of its finances and property and has all the powers necessary for it to discharge these responsibilities. To perform these responsibilities effectively, it delegates detailed management to committees and officers, retaining ultimate responsibility subject to the statutes.
2. Congregation is the ultimate legislative body of the University and is composed of all academic staff and established senior research support staff, senior administrators, and senior librarians. It has to approve changes to the Statutes and Decrees of the University.
3. The Curators of the University Chest are responsible under Council for the conduct and supervision of the University's financial business (except that of the Delegates for the Press) and have the power to make regulations.
4. The General Board of the Faculties is (under Council) responsible for the academic administration of the University. It has the duty to consider and to supervise all matters connected with the research and teaching activities of the University and to administer the funds made available to it for those activities. The General Board is composed of members of Congregation elected by Congregation from members of faculties, and ex officio members.
5. The Resources Committee is a joint committee of the Hebdomadal Council and the General Board which keeps under review the financial resources of the University and the needs of the various spending sectors, and makes recommendations to Council and the General Board, in particular on long-term financial planning, the annual budget, the allocation of resources, and the use of the University's capital funds.
6. The Vice-Chancellor is the chief officer of the University, who normally presides over Congregation and normally chairs the Hebdomadal Council in the place of the Chancellor. The Vice-Chancellor is ex officio a member of the General Board and may take the chair. The Chancellor is a member of the Curators of the University Chest, taking the chair when present and appointing the Chairman of the Curators. The Chancellor also chairs the Resources Committee. He or she is the Designated Officer appointed by Council in accordance with the University's Financial Memorandum with the Higher Education Funding Council for England, and may be required to appear before the Public Accounts Committee on matters relating to Funding Council grants made to the University.
7. The Registrar, under the Chancellor, is the head of the central administrative service of the University and is also secretary of Congregation and of Council.
8. The Secretary of the Chest is one of the five deputies to the Registrar and is the Chief Financial Officer of the University with right of direct access to the Chancellor and Council on financial, technical, and professional matters. He or she is secretary of the Curators of the University Chest (see cl. 3 above) and head of the Finance Division within the Central Administration. The Secretary of the Chest is responsible: (a) to the Curators of the University Chest for ensuring that adequate controls and procedures are in place to record all transactions of the University in an accurate and timely manner; (b) for the provision of financial information and advice to all departments and spending units; and (c) for advising the relevant university committees on financial policies and planning, and the financial implications of any proposals.
9. Financial Memorandum with the Higher Education Funding Council for England (HEFCE). The Hebdomadal Council is responsible for ensuring that the University complies with the memorandum and related guidance. HEFCE is required to be satisfied that the Hebdomadal Council has appropriate arrangements for financial management and accounting and that the uses to which HEFCE funds are put are consistent with the purposes for which they were given. The Hebdomadal Council is also required to ensure that the University has a sound system of internal financial management and control and that value for money is delivered from public funds. The Chancellor is the Designated Officer appointed by the Hebdomadal Council in accordance with the Financial Memorandum, who is responsible for satisfying Council that the Financial Memorandum is complied with. The Financial Memorandum sets out detailed guidelines covering a number of areas referred to in these regulations; in such cases the regulations have been framed to incorporate the requirements of the memorandum.
10. Heads of Departments and Institutions. As much autonomy and devolution of functions as are possible and practicable are given to individual departments and institutions. Therefore full responsibility for internal control within a department or institution rests with each head of department or institution, who should ensure that appropriate and adequate arrangements exist within the department or institution to safeguard all assets, that university policies including these Financial Regulations are complied with, and that records are maintained in as complete and accurate a form as possible.
In particular, heads of departments and institutions must ensure wherever possible that the duties of their staff are segregated so that more than one member of staff records and processes a complete transaction, e.g. for the receipt, recording, and banking of income, or for the placing of orders, receipt of goods, and approval of invoices for payment. Where resources allow for only one member of staff to carry out all the administrative duties of the department or institution, it is incumbent upon the head of department or institution to ensure that adequate procedures for regular independent checks of financial transactions are in place. 11. Guidance on recommended internal control procedures will be included in the University Financial and Accounting Procedures Manual when issued.
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1. University employees and others with responsibility for the administration or management of university funds should never use their authority or office for personal gain and should always seek to uphold and enhance the standing of the University.
2. The University has published Guidelines on Conflict of Interest which employees and others who have responsibility for the administration or management of university funds are expected to follow in order to avoid such conflicts. A Conflict of Interest Committee has also been set up to give formal and informal advice. Enquiries should be directed in the first instance to the Director of the Research and Commercial Services Office, from whom details of the guidelines are also available.
3. Members of university committees should declare any relevant interests (financial or otherwise) in matters under discussion and should if requested by the chairman withdraw from such discussion.
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1. The University's audit arrangements are required to be in accordance with the requirements of the HEFCE Audit Code of Practice.
2. The Audit Committee is a committee of the Hebdomadal Council whose members are appointed by Council and are not members of Council or any other committee which has main-line executive authority within the University.
The committee reviews the effectiveness of the financial and other internal control systems of the University including the scope and effectiveness of the work of the Internal Audit Section and the audit of the university financial statements. The committee must produce an annual report for Council, which, after consideration by Council, must be sent to the Chief Internal Auditor of HEFCE.
3. The Internal Audit Section is responsible for carrying out an independent appraisal of the internal control systems of the University's activities, financial and otherwise. It provides a service to all levels of management by evaluating and reporting to them the effectiveness of the controls for which they are responsible. The section may provide advice concerning controls and other matters in the development of systems but does not have a direct responsibility for the development, implementation, or operation of systems. The section is responsible for giving assurance to the Audit Committee, the Hebdomadal Council, and the Chancellor on all financial and other control arrangements. The work of the section involves a continual programme of review of university departments, faculties, and committees and of the Central Administration.
The Internal Audit Section has unrestricted right of access to all vouchers, documents, books of account, computer data, and any other information which it considers relevant to its enquiries and which is necessary to fulfil its responsibilities. This includes the right to verify assets and to have direct access to any employee or person responsible for the administration or management of university funds with whom it is felt necessary to raise and discuss such matters.
4. External Auditor. The Hebdomadal Council shall annually appoint, on the recommendation of the Audit Committee, the University Auditor. The University Auditor audits the Financial Statements of the University and reports to the Chancellor whether in his or her opinion the financial statements give a true and fair view of the state of the financial affairs of the University and its related bodies and subsidiary companies (other than the University Press) at the balance sheet date, and of their income and expenditure for the year then ended.
The University Auditor has unrestricted right of access to all vouchers, documents, books of accounts, and computer data, and any other information. The University Auditor has the right to verify assets and to have direct access to any employee or person responsible for the administration or management of university funds with whom it is felt necessary to raise and discuss such matters. The University Auditor may visit departments and institutions.
5. Other Auditors. The University may be audited by the HEFCE Audit Service and may be visited by the National Audit Office. These auditors have the same rights of access as the Internal and External Auditors.
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Serious weaknesses, significant frauds, or any other major accounting breakdown must be reported by the Secretary of the Chest to the Vice-Chancellor as the University's Designated Officer in accordance with HEFCE requirements.
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1. University Budget. The Resources Committee is required to report before the end of Trinity Term to Council and the General Board on the budget for the ensuing financial year.
All heads of departments and institutions and secretaries of committees and boards must by the date stated by the Secretary of the Chest supply the Finance Division of the Central Administration with any information requested for the preparation of the university budget.
2. Spending Sector Budgets. Each spending sector (`parent body') which receives and allocates central university funds is required before the start of each financial year to prepare a budget for that financial year and to notify grants to the spending bodies, if any, for which it is responsible. The spending sectors are the General Board, the Council Departments Committee, the Central Administration, the Buildings Committee, and the Health and Safety Committee.
If a spending sector is unable to complete its budget before the start of the financial year it must report this and the circumstances to Council through the Resources Committee.
No spending sector may budget for an accumulated deficit on its general funds (funds not earmarked by the body from which received) without reporting the circumstances to Council through the Resources Committee. Accounts for funds which are earmarked by the body from which they are received must not have an accumulated deficit.
3. Departmental Budgets and Forecasts. Each department, institution, board, or committee (`spending body') which receives a recurrent grant from a parent body (see cl. 2 above) is required by the date in Michaelmas Term notified by the Secretary of the Chest to prepare a budget each year of how it is planning to spend its recurrent and other grants from central university funds and any other income. These budgets are used by spending bodies to monitor their expenditure and income during the year. They are also used in the preparation of the University's budget and by parent bodies when considering the financial position of spending bodies.
Each spending body must also by the date notified by the Secretary of the Chest supply termly forecasts for consideration by the Curators of the University Chest and by its parent body.
Spending bodies are required to keep their expenditure within the resources available to them. A spending body may budget for a deficit for the year on its main account to which its recurrent grant from central funds is credited if the balance at the start of the year is large enough to ensure that at the end of the year there is still an accumulated surplus, or if special arrangements have been agreed with the parent body to allow an accumulated deficit at the end of the year.
If a spending body finds in the course of a year that it will be unable to achieve its budget and is likely to show an accumulated deficit at the end of the year, it must report the situation to its parent body without delay. The parent body may agree to allow the deficit to stand only if it is satisfied that the spending body has plans in place to recover the position.
A spending body which has an accumulated deficit at the start of the year on its main recurrent grant account must satisfy its parent body that it has a budget to eliminate that deficit during the year. In exceptional circumstances, a parent body may agree to a longer time scale.
Where a spending body has been permitted by its parent body to have one or more separate accounts under the terms set out in § 11, cl. 5 below, the account or accounts must not have an accumulated deficit unless the express permission of the parent body has been given.
In the case of recurrent grants for equipment and/or furniture provided by the Research and Equipment Committee, the spending body may end the financial year with an overspend on that grant of not more than the limit laid down by the Research and Equipment Committee from time to time.
Advice can be obtained from the Deputy Chief Accountant in charge of Departmental Accounts in the Finance Division.
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1. New academic-related and non-academic posts at the grades of P06, Whitely Council MLS01, MT02, and below, Nurse E and below, Administrative and Clerical 3 and below, and outside-grant-funded academic-related RSIA and RSIB may be set up by departments, institutions, boards, and committees without the prior approval of the grading by the Personnel Services Section of the Central Administration (acting on behalf of the Staff Committee), provided that if the post is outside-grant-funded the relevant procedures specified by the Research and Commercial Services Office for the acceptance of the outside grant have been completed. The grading of all other new academic-related and non-academic posts with salary scales whose maximum is below the maximum of the scale for university readers, or changes to the grade of similar existing posts, must be approved by the Personnel Services Section on behalf of the Staff Committee unless otherwise specifically covered by Council. Advice can be obtained from the Personnel Services Section.
2. The Decrees of the University state that the Committee on Higher Appointments shall consider and make recommendations to Council (and in appropriate cases to the General Board) on all proposals for the creation of new posts (or the regrading of existing posts) in respect of all administrative, library, curatorial, and other staff in receipt of salaries above (or on scales with a maximum above) the maximum of the scale for university readers (Ch. II, Sect. I, § 12, cl. 1).
The setting up of new established academic-related and non-academic posts and any changes to established academic-related and non-academic posts should also be approved in the case of General Board departments, boards, and committees, by the Finance and General Purposes Committee of the General Board; in the case of Council departments, by the Committee for Council Departments; and in the case of libraries under the Libraries Board, by the Libraries Board or such body as may have been duly authorised by the Libraries Board.
3. The setting up of new established academic posts and any changes to the establishment of academic posts are made by the General Board.
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1. Accounting Records. The Decrees of the University state that the Curators of the University Chest and each delegacy, board, and committee and the head of each institution and department to whom funds are entrusted shall respectively ensure that all moneys under their control are safely kept and are used only for the purposes for which they are allocated and that all transactions are recorded in proper accounting records (Ch. VIII, Sect. IX, cl. 1).
2. Retention of Financial Documents. Financial documents should be retained for periods prescribed by the Secretary of the Chest.
3. University Computerised Accounting System. All members and staff of the University with access to the University's computerised accounting system must comply with the password and other security controls established within the Central Administration. Advice can be obtained from the Prophecy Implementation Team in the Finance Division.
All members and staff of the University must comply with the University Policy and Rules for Computer use. Advice can be obtained from the Director of Computing Services.
All members and staff of the University must comply with the University Data Protection Policy. Advice can be obtained from the Director of Administrative Information Services.
4. New Institutions, Boards, or Committees. No new department, institution, board, or committee may be established with a grant from central university funds otherwise than on the authority of the appropriate parent body. No grant from central university funds may be transferred from one department, institution, board, or committee to another without the permission of the appropriate central university body.
5. Separate Accounts. If a department, institution, board, or committee wishes to set up an account which is to be kept separate from its main account (the account to which its recurrent grant from central funds is credited) in its year-end accounts, it must first obtain the authority of its parent body. Such separate accounts may be set up only for funds which are identified by their original provider as not being available for general purposes subject to approval by the parent body or its delegated representative. In no circumstances may such accounts show accumulated deficits unless the express permission of the parent body has been given.
6. Annual Accounts and Financial Statements. The Decrees of the University state that the Curators of the University Chest shall prescribe the form in which the institutions, departments, boards, committees, and delegacies shall keep their accounts, and prescribe the dates by which the annual accounts of those bodies shall be submitted to them (Ch. II, Sect. I, § 6, cl. 7 (c)).
When submitting their annual accounts to the Curators of the Chest the head of department or chairman of each department, institution, board, or committee shall complete the certificate required by the Curators of the Chest.
The Decrees of the University state that the Curators of the Chest shall review annually and report to Council on their own accounts and the accounts of all institutions, departments, boards, committees, and delegacies of the University (Ch. II, Sect. I, § 6, cl. 7 (e)).
The Decrees of the University state that as soon as practicable after 31 July in each year, the Curators of the University Chest shall cause to be prepared and audited and submitted to the Chancellor Financial Statements of the University for the year to that date (Ch. VIII, Sect. IX, cl. 2 (a)).
The Decrees of the University state that each delegacy, board, committee, and subsidiary company and the head of each institution and department shall as soon as practicable provide or cause to be provided such information as the Curators of the University Chest may require to enable them to prepare the Financial Statements of the University (Ch. VIII, Sect. IX, cl. 2 (b)).
The Vice-Chancellor, the Chairman of the Curators of the University Chest, and the Secretary of the Chest shall sign the financial statements.
The signed and audited Financial Statements of the University shall be sent to HEFCE before the 31 December following the accounting period ending on the previous 31 July, in accordance with the Financial Memorandum with HEFCE.
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1. University income comprises all moneys receivable by the University, including all university departments, institutions, boards, and committees. University income includes all moneys made available to individuals on the basis of their association with the University.
2. The setting up of university bank accounts, including the mandate for those bank accounts and subsequent changes to the mandate, must be approved by the Curators of the University Chest. All bank accounts shall be in the name of the University. The University Statutes require that all moneys receivable by the University shall be paid to the Curators of the Chest. In consequence the curators cannot permit the opening of private bank accounts which result in the diversion of any moneys receivable by the University.
3. The Secretary of the Chest is responsible, on behalf of the Curators of the University Chest, for liaising with the University's bankers in relation to the University's bank accounts and the issue of cheques. All cheques shall be ordered on the authority of the Secretary of the Chest, who shall make proper arrangements for their safe custody.
4. The Secretary of the Chest is responsible for ensuring that all university bank accounts are subject to regular reconciliation and that large or unusual items are investigated as appropriate.
5. Where the curators agree to the setting up of a bank account for a department, institution, board, or committee, the name of the University as well as that of the department, etc. must appear in the name of the account.
6. All university income must be banked to a university bank account and all university expenditure paid from a university bank account.
7. Where the curators give approval for the setting up of an imprest bank account, the account may be used only for making payments and not for banking receipts other than for the reimbursement of the account. Imprest bank accounts cannot be used for payments which are in the nature of employment or for the settlement of normal commercial invoices. They can be used to reimburse travel expenses under £10 provided that a travel claim form is used. They must not be overdrawn. Advice can be obtained from the Deputy Chief Accountant in charge of Departmental Accounts in the Finance Division.
8. The approval of the curators is needed in advance for the setting up of any university charge or credit cards. Advice can be obtained from the Deputy Chief Accountant in charge of Departmental Accounts.
9. When a university department, institution, board, or committee becomes aware that it will become subject to foreign exchange risk through the future receipt or payment of foreign exchange, it should notify the Finance Division and arrange to discuss how the risk can be reduced or avoided. Advice can be obtained from the Investment Secretary in the Finance Division.
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1. The University has a deposit pool in which departments and institutions, boards, committees, and trust funds may invest certain surplus cash balances if available for a minimum period of one month. The pool attracts the same income as the University's short-term cash deposits, which is paid to depositors at the end of each financial year, but does not offer investors any capital growth. Investments are made at the discretion of the Curators of the University Chest as recommended by the Investment Committee.
2. The Curators of the University Chest shall determine from time to time the minimum amount that may be invested by a department, institution, board, committee, or trust fund and the minimum withdrawal or additional investment. They will also determine the monthly dates when deposits and withdrawals may be made.
3. Every account which has funds in the deposit pool must either have a nil or positive balance of cash with the Chest. For those accounts recording expenditure to be reclaimed from a trust fund at the end of the financial year, the balance of the account will be offset against the trust fund balance and only the net value invested.
4. The Curators of the University Chest shall approve the type of funds which can be placed on deposit in the deposit pool. The Secretary of the Chest will approve each individual application to place funds on deposit. No moneys from a department, institution, board, or committee account that has received central university funds may be invested in the pool. Advice can be obtained from the Deputy Chief Accountant in charge of Departmental Accounts.
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1. Each head of department or institution and each board or committee which receives cash or cheques is responsible for establishing procedures to ensure that all receipts to which the department, institution, board, or committee is entitled are received, properly accounted for and recorded, and banked intact within a week, or more often if large sums are received. The head, etc. is also responsible for the security of cash received until banked.
2. All cheques received by university departments, institutions, boards, and committees shall, wherever possible, be made payable to the `Oxford University Chest' or to the name of the department, institution, board, or committee followed by `Oxford University'.
3. The postal service and University Messenger Service must not be used to send cash.
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1. The Hebdomadal Council has given delegated authority as follows [Council Standing Order 24 (2)]:
(a) to the Curators of the Chest, authority without limit to accept gifts in respect of allocations from the Trustee of the Campaign for Oxford Trust Fund;
(b) to the Chairman of the Curators of the University Chest, authority to accept gifts worth more than £20,000 and up to £100,000, subject to a termly report to Council of action taken;
(c) to a Deputy Chief Accountant, authority to accept gifts worth more than £2,000 and up to £20,000; and
(d) to the head of each department or, if the head so wishes to its administrator, authority to accept for that department gifts worth up to £2,000; except in each case:
(i) research grants and contracts covered by procedures jointly agreed between Council and the General Board;
(ii) any gifts the acceptance of which involves the establishment of a new trust;
(iii) any gifts which bear any restrictive conditions or which entail any potential commitment on university funds;
(iv) any gifts which may be considered sensitive for political or other reasons; or
(v) any other gifts in respect of which those given delegated authority may consider Council's approval necessary.
In appropriate cases those exercising delegated authority are expected to ask Council to vote thanks for a gift.
2. Benefactions and endowments made to the University may be given on trust. In order to ensure that the University complies with any conditions attaching to the benefaction or endowment, a decree must be made. The decree should include the purpose of the fund, its aims and objectives, the use to which the income is to be put (including unspent income carried forward to future financial years), and whether the capital may be spent. The capital is usually invested in the trusts pool. Advice may be obtained from the Deputy Chief Accountant in charge of Departmental Accounts.
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1. Each head of department or institution and each board or committee which receives income from the sale of goods or services is responsible for establishing procedures to ensure that all sales are authorised and are made only to acceptable credit risks. Procedures must ensure that accurate invoices are prepared for all goods dispatched or services supplied and that they are properly recorded and processed. Procedures must also be in place to follow up overdue accounts effectively.
2. The liability to Value Added Tax of all goods and services supplied must be established and Value Added Tax charged and accounted for as appropriate.
3. When a new income-generating activity is set up, the Secretary of the Chest must be consulted to consider whether the activity constitutes trading which might be subject to Corporation Tax and therefore should be conducted through a university company.
4. The University is required by the Financial Memorandum between the University and HEFCE when determining the price to be charged for research contracts, residences, catering, conferences, and services to external customers, including consultancy, to assess the full cost to the University. HEFCE expects the full cost to be recovered unless it is appropriate to do otherwise having regard to the particular circumstances. Departments, institutions, boards, and committees are responsible for ensuring that charges make due allowance for overhead costs and that they are aware of the extent to which they subsidise the cost from their own resources and can give justification for any subsidy. When research grants and contracts are costed, the University's policy on the charging of overheads between departmental and central funds must be followed.
5. The head of department or institution or the board or committee must approve sales to employees, members of the University, or other customers made without charge or at a charge below that normally made to external customers.
6. The head of department or institution or the board or committee should ensure that appropriate charges are made for the use of university premises and facilities for non-university purposes.
7. Writing-off Bad Debts. The following have authority to write off bad debts after all reasonable steps have been taken to recover them:
(a) The Secretary of the Chest has authority to write off against the General Fund bad debts of up to £5,000.
(b) The Curators of the University Chest have authority to write off sums over £5,000 against the General Fund. They also have authority to write off smaller sums against the General Fund in any case of difficulty referred to them by the Secretary of the Chest.
(c) The curators have authority where they consider that the bad debt resulted from unguarded action taken by a department, institution, board, or committee to write off the bad debt against that body's funds.
A head of department or institution or a board or committee with bad debts due to the department, institution, board, or committee should consult the Secretary of the Chest, who will decide whether the bad debt should be written off against the General Fund if it is less than £5,000, or if it is more than £5,000 or a difficult case ask the curators to decide whether to write the bad debt off against the General Fund. All bad debts where the bad debt might be written off against departmental, etc. funds will be considered by the curators.
The curators will receive an annual report of the total sum written off each year giving details of individual sums over £2,000.
Any Value Added Tax included in bad debts which have been written off may be recovered using the procedures prescribed by Customs and Excise.
Any legal action to recover moneys due has to be approved by the Chancellor. Advice should be sought from the Secretary of the Chest in the first instance.
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1. The Decrees of the University state that the Registrar, the Secretary of the Chest, the Secretary of Faculties, the University Surveyor, their respective deputies appointed from time to time, and the Land Agent are authorised to enter into, vary, and discharge on behalf of the University such contracts and such classes of contracts (whether made in writing or by parol), and to sign such other documents and such classes of documents, as may be specified by Council (Ch. VIII, Sect. X).
2. The Director of the Research and Commercial Services Office is authorised to effect all contracts relating to research and related matters.
3. Heads of departments and institutions and boards and committees have authority to effect contracts in the course of the ordinary business of their department, institution, board, or committee involving only the funds over which they have delegated control, subject to the Statutes, Decrees, and Regulations of the University including these Financial Regulations. They do not have any authority to enter into any contract which is illegal or which does not comply with obligations laid down by HEFCE, the Inland Revenue, Customs and Excise, and other government authorities. What is ordinary business will vary from body to body but for academic departments is teaching and research and (save as otherwise provided) their support. Specific funds may be used only for the purposes given.
4. Heads of departments and institutions and boards and committees may delegate in writing their authority to effect contracts.
5. Heads of departments and institutions and boards and committees should obtain the advice of the Secretary of the Chest in the first instance if they are unsure of their authority to effect a particular contract.
6. The regulations for contracts of employment are stated in 23 below.
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1. Each head of department or institution and each board or committee is responsible for establishing procedures to ensure that goods and services are ordered only in required quantities of suitable quality at the best terms available, after appropriate requisition and approval.
Procedures must be in place to ensure that goods and services received are inspected and only properly ordered items are accepted before invoices are authorised. Invoices must be properly recorded.
2. Orders may be placed only when funds are available to pay for them.
3. Each head of department or institution and the secretary of each committee or board must supply the Departmental Accounts Section of the Finance Division with a register of authorised signatures for the authorising of documents for payment. The register may have limits to any individual's authority. Each entry on the register must be signed or initialled by the head of department or secretary. Where the proposed authorised signatory is not a university employee, the approval of the Secretary of the Chest is also required. The register must be kept up to date. Advice can be obtained from the Departmental Accounts Section of the Finance Division.
4. The Central Purchasing Officer in the Central Administration should be consulted for advice and information on all purchasing matters including centrally negotiated purchasing arrangements, to ensure that value for money is obtained. Further information is available in the Oxford University Purchasing Group buyer's guide.
5. Heads of departments and institutions and committees and boards are responsible for complying with European Union Procurement Directives. All individual procurements and contract arrangements with a value in excess of £150,000 must by law be advertised in the Official Journal of the European Union. The penalties for non-compliance by the University are severe. Further guidance on the EU Procurement Directives is available from the Central Purchasing Officer and is included in the Oxford University Purchasing Group buyer's guide.
6. Prompt payment for discount must not be made earlier than the date of supply except in cases where the supplier must itself make cash outlays at an early stage or permission has been obtained from the Finance Division. Advice can be obtained from the Deputy Chief Accountant in charge of Departmental Accounts.
7. Payments in the nature of employment must be made through the university payroll and not by other means.
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1. Travel and subsistence reimbursement claims should be made on university claim forms or other forms approved by the Curators of the University Chest.
2. The claims must be for the reimbursement of actual expenditure incurred wholly and necessarily on the business of the University and be in accordance with the rates approved by the Curators of the University Chest. The lower mileage rate should be used unless the head of department or institution or the board or committee has authorised the use of the higher rate in advance.
3. Supporting vouchers must be provided for the cost of accommodation, fares, and other major items of expenditure. 4. No round-sum allowances may be paid without the approval of the Curators of the University Chest.
5. An owner whose vehicle is being used for travel on university business must ensure that it is adequately insured for that purpose.
6. Employees cannot be reimbursed for the cost of travel to and from their normal place of work otherwise than in exceptional circumstances, when permission from the Secretary of the Chest must be sought. Reimbursement of travel expenses to Oxford for certain defined casual employees and others approved by the Secretary of the Chest where the journey exceeds twenty miles may be grossed up for tax and national insurance, and then paid through the payroll.
7. No one may authorise reimbursement of his or her own expenses. Where there is no suitable person within a department, institution, board, or committee to authorise an expense claim, the Secretary of the Chest must be asked to make alternative arrangements.
8. Those travelling abroad on university business should take out appropriate insurance cover; this is available at economical rates through travellers registering with their departmental administrator or board or committee secretary. This cover includes medical expenses incurred abroad and those costs arising from cancellation or curtailment of the journey.
9. Advice on travel and subsistence claims should be sought from the Deputy Chief Accountant in charge of Departmental Accounts.
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1. Advances will normally be made only to employees and registered students of the University for up to one month's costs. Trips which exceed one month should be funded on an imprest system of topping up the advance against claim forms. Only in cases where this would be genuinely impossible or impracticable will an exception to the time limit be made and then only on consideration of a written application in advance to the Secretary of the Chest.
2. Advances will be limited to 75 per cent of the estimated cost of up to one month's subsistence according to the daily rates for countries abroad approved by the Curators of the University Chest and to the full cost of fares.
3. Requests for advances should be made on university expense claim forms giving details of dates and countries to be visited, and a breakdown of the advance required.
4. Claimants must submit full documentation within seven days of return, and the process of accounting for the claims against advances must be completed within one month of the return date. Advances should not be outstanding for more than two months.
5. Advice on travel and subsistence advances may be obtained from the Deputy Chief Accountant in charge of Departmental Accounts.
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1. Entertaining should wherever possible and appropriate be carried out in the University's own facilities in departments or in the colleges.
2. Entertainment expenditure may only be an appropriate use of university money and avoid tax liability if it is incurred wholly, necessarily, and exclusively for university purposes. A schedule must be included with the claim which gives details of those entertained and their institutions and the purpose of the entertainment.
3. All expense claims for entertaining, which must be supported by vouchers, must be authorised by the head of department or institution or chairman of the board or committee (except where the head or chairman is the claimant, when alternative arrangements must be made - see 20, cl. 7 above). The authorising and submission of a claim for payment for entertaining is a declaration that the cost was incurred wholly, necessarily, and exclusively for university purposes. Only on this basis can the Finance Division pay the claim in full without deduction of tax.
4. In authorising entertainment expenditure, heads of departments and institutions and chairmen of boards and committees are also undertaking that, if in any case tax is subsequently levied, any cost which is not recoverable from the individual beneficiaries will fall on the budget of the department, institution, board, or committee concerned.
5. Advice on payments for entertaining may be obtained from the Deputy Chief Accountant in charge of Departmental Accounts.
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1. The University Statutes state that no one shall have authority to offer any person employment as a member of the University's academic-related or non-academic staff, or to sign letters of appointment for such academic-related and non-academic staff, or to dismiss such non-academic staff, except with the express consent of Council and provided that
(a) any offer of employment shall be on the appropriate terms and conditions of employment for the category of staff concerned; and
(b) any dismissal shall have complied with the appropriate procedures for the dismissal of non-academic staff (Tit. X, Sect. II, cl. 1).
Council has delegated its powers to the Staff Committee and to the chairman and officers of that committee.
2. All university academic-related and non-academic employees shall have a properly authorised letter of appointment whose form has been approved by, or under the authority of, the Staff Committee.
3. Academic members of staff shall have a properly authorised letter of appointment issued by the Secretary of Faculties or the Registrar.
4. No member of staff may be given a contract of employment for a period exceeding that for which funding is available fully to support the post, or posts, to which he or she is appointed.
5. The only payments which may be made to university employees are those which relate to the operation of approved university salary scales and such other payments as have been specifically approved by the General Board or the Staff Committee.
6. All university employees shall be paid through the payroll operated by the Salaries Office of the Finance Division.
7. Each head of department or institution and each secretary of a board or committee which has staff paid through the university payroll must supply the Salaries Office with a Register of Authorised Signatures for the authorising of salary documents. The register may have limits to any individual's authority. Each entry on the register must be signed or initialled by the head of department or secretary. The register shall be kept up to date. Where the proposed authorised signatory is not a university employee the approval of the Secretary of the Chest is also required.
8. All documents sent to the Salaries Office authorising the payment of new employees or subsequent changes to their salary or other details must be authorised in accordance with the relevant Register of Authorised Signatures.
9. If it is proposed to employ a citizen of a country which is outside the European Economic Area (EEA), it is the responsibility of the head of department, or other authorised signatory:
(a) in the case of a person at present in the UK, to ensure that the landing conditions imposed on that person by the Immigration and Nationality Directorate of the Home Office allow the proposed employment; or
(b) if the person is not in the UK, to obtain through the central Administration a work permit from the DfEE for the specific employment proposed.
The Work Permit and Immigration Help Desk within the Central Administration will handle centrally any applications which may be necessary and will advise on the detail and documentation required. (It should be noted that the DfEE will normally require, to support a successful application, evidence that the vacancy was advertised in an approved publication available in the EEA.)
The Salaries Office will not add a non-EEA citizen to the payroll unless it is clear that any necessary work permit has been obtained or that the immigration status of the person concerned does not require the University to seek permission for the specific employment proposed.
10. Any circulars issued by the Secretary of the Chest on taxation or national insurance matters must be complied with to ensure that the requirements of the Inland Revenue and Department of Social Security are met and to protect the University from financial loss. 11. Advice on academic-related and non-academic staff appointments may be obtained from the Personnel Services Section of the Central Administration, on academic appointments from the Secretary of Faculties or the Secretary of the Appointments Committee of the General Board, and on salaries from the Salaries Officer in the Finance Division.
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1. Each head of department or institution and each board or committee is responsible for establishing procedures to ensure that stocks are adequately protected against loss or misuse. Stocks should be maintained at the minimum level required to support operations.
2. Where stocks are included in Oxford Limited a physical stock count must be conducted at least once a year, preferably at 31 July. The Deputy Chief Accountant responsible for the accounts of Oxford Limited should be informed in advance of the date of the stock count.
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1. Each head of department or institution and each board or committee is responsible for establishing procedures to ensure that all items of equipment and furniture are adequately protected against loss and misuse and that all purchases and disposals of equipment are properly authorised, accounted for, and recorded.
2. Equipment inventories must be maintained and be able to satisfy the requirements of the General Board's Research and Equipment Committee or of the Curators of the Chest as determined from time to time.
3. Equipment and furniture grant funds may be used only for approved purposes in accordance with HEFCE regulations, and departments, institutions, boards, and committees shall follow the rules and guidelines on the allocation and expenditure of their equipment grants (whether recurrent or non- recurrent), and on their equipment stock, as laid down by the General Board's Research and Equipment Committee from time to time.
4. Equipment bought from research grants and contracts belongs to the University, unless there is explicit provision to the contrary in the relevant contract, and is available for use in the relevant department or institution at the expiry of the grant subject to any conditions imposed by the funding body.
5. Any proceeds from the sale of equipment which was originally purchased using Equipment Fund moneys must be returned to that fund, but will normally be credited to the equipment account of the department concerned.
6. Where equipment is loaned, departments, institutions, boards, and committees should have procedures in place to ensure that it is returned in good condition, and should consider the need for the borrower to arrange insurance cover.
7. If a department, institution, board, or committee wishes items of equipment to be covered for all-risks insurance and not just fire, etc. (aircraft, explosion, riot and civil commotion, malicious damage, and earthquake), it must arrange this with the Insurance Section in the Central Administration. The department or institution will be charged the premium. It should also notify the Insurance Section of disposals so that unnecessary premiums are not paid. The acquisition of individual items of equipment worth more than £500,000 should be notified to the Insurance Section.
8. Departments and institutions must not enter into leasing contracts for equipment without taking the advice of the Central Purchasing Officer in the Central Administration, who has prepared a standard contract.
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1. No university-owned vehicle may be used unless it is insured for the purpose for which it is being used and has a valid Department of Transport Certificate where required, and the driver is qualified to drive the vehicle.
2. University-owned vehicles may be used only by persons and for purposes authorised in writing by the head of department or institution or on behalf of the board or committee. Departments, institutions, boards, and committees should keep a record or authorised drivers. University vehicles should not normally be used for travel to and from work and they should be left on university premises at night. Where the use of university vehicles is authorised for travel to and from work and they are not left on university premises at night, any employee of the University is likely to be taxed on the benefit enjoyed.
3. Where private use is allowed, the terms and conditions of use and reimbursement of costs must be authorised in writing by the head of department or institution or on behalf of the board or committee, and the person granting such authorisation is also responsible for ensuring that there is still comprehensive insurance cover.
4. All acquisitions and disposals of university vehicles must be notified to the Insurance Section of the Central Administration so that the insurance cover can be amended.
5. Sales of vehicles should be advertised beyond the department, institution, board, or committee making the sale as well as within.
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1. The Decrees of the University state that the Buildings Committee shall be responsible to Council and the General Board for formulating and reviewing the University's programme for all building works, for the execution of all building projects, for maintaining university buildings in a satisfactory condition, and for allocating space within them (Ch. II, Sect. II, § 3, cl. 2).
2. All new functional building works, however funded, require the permission of the Buildings Committee.
3. The Current Standing Orders for Building Tenders must be observed.
4. HEFCE instructions for Estates Procedures must be complied with for HEFCE-funded projects.
5. European Commission public procurement directives on supplies, services, and works must be followed.
6. Advice on building matters can be obtained from the University Surveyor.
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1. The Decrees of the University state that the Curators of the University Chest shall on behalf of Council, arrange for the investment of funds and endowments of the University in accordance with Tit. XIV, Sect. V, cl. 2, or in accordance with the Trusts Pool Scheme, and according to the advice of an Investment Committee (Ch. II, Sect. I, § 6, cl. 6).
2. The Investment Committee shall report to the Curators of the University Chest each term.
3. The curators shall report to Council once a year on their investment policy and the performance of the University's investments.
4. No department, institution, board, committee, or trust of the University may invest in any securities or other investments (including land) without the permission of the Curators of the University Chest.
5. The Curators of the University Chest manage the Trusts Pool Scheme, which is designed for long-term investment, and shall approve all new shareholders and increases in shareholdings. The terms of the pool are included in the University's Statutes and Decrees (Ch. VIII, Sect. VIII).
6. The Investment Committee shall make recommendations to the Curators of the University Chest on the appointment of managers of investments and the investment powers of the officers of the Finance Division for the approval of the curators.
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1. Functional Property. The authority of Council is needed for any offer to purchase land or property (whether freehold or leasehold) for the functional use of the University.
All contracts for the purchase of land or property for the functional use of the University (whether freehold or leasehold) and all sales of existing functional land and property must be effected by the University centrally on the authority of Council.
2. Non-functional Property. The Curators of the University Chest have charge of all real property which is not in use for the functional purposes of the University and may purchase, lease, and sell real property for investment or other non-functional purposes on behalf of the University. The Estates Committee, which is a committee of the curators, assists and advises the curators in this responsibility.
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1. All applications to outside bodies for research funds must be submitted for university approval to the Research and Commercial Services Office in the Central Administration before being despatched to the sponsor. The Research and Commercial Services Office is also responsible for negotiating, and entering into, research and other contracts on behalf of the University.
2. The University's policy of disclaiming liability under research agreements and obtaining indemnities from sponsors must be complied with.
3. The University's policy on the charging of overheads, and the distribution of those overheads between departmental and central funds, must be followed when research grants and contracts are being costed.
4. The University's policies covering all aspects of research funding and related activities must be complied with. Further advice on such policies is available from the Research and Commercial Services Office.
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1. Academic staff may without loss of stipend engage in personal consultancy work with the approval of the relevant faculty board and head of department in departmentally organised faculties, provided that the amount of time spent on these and other outside appointments does not exceed thirty days per annum. Applications for permission to spend more than thirty days per annum on outside appointments (including consultancies) need the approval of the General Board and may result in loss of stipend. Academic- related staff may, subject to the same annual limit of thirty days, also engage in personal consultancy work with the approval of their head of department, `line manager', and sponsoring body (if applicable).
Advice may be obtained from the Secretary of the Appointments Committee of the General Board or faculty board secretaries in respect of academic staff and from the Personnel Services Section in respect of academic-related staff.
2. The terms of any personal consultancy agreement must be vetted by the Research and Commercial Services Office in the Central Administration unless the University's standard form of consultancy agreement is used. Advice can be obtained from the Research and Commercial Services Office.
3. Employees of the University must not hold themselves out as acting on behalf of the University when undertaking personal consultancy work. The University accepts no responsibility for work done or advice given. Once approval to hold a consultancy is given, appropriate disclaimers of liability will be issued on behalf of the University by faculty board secretaries or the Secretary of the Appointments Committee of the General Board in respect of academic staff and by departments in respect of other staff.
4. Employees of the University engaged in personal consultancy work are covered by the University's professional indemnity insurance only if the permission of the University has been obtained and the fees receivable declared to the insurers. Advice should be obtained from the Insurance Section in the Central Administration.
5. The University's policy on the payment to employees for consultancy and services to industry must be complied with.
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1. Except with the express consent of Council, no official of the University or any other person employed by the University or working in or in connection with any department of or under the control of the University shall in connection with any invention, discovery, or patent, or (save under the authority of the Delegates of the University Press, in matters falling within their jurisdiction) process or manufacture have authority to make any representations on behalf of the University or to enter into any contract on behalf of the University or to be concerned in any transaction whatsoever in connection therewith on behalf of the University (Tit. X, Sect. III, cl. 1).
2. Revenue received by the University as a result of the exploitation of any item of intellectual property shall be distributed in accordance with the University's Intellectual Property Policy.
3. Advice on intellectual property matters should be obtained from the Research and Commercial Services Office.
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1. When departmental staff in their spare time undertake private work for other departments involving the use of departmental facilities, proper invoices in respect of any charges which may be made for such work must be prepared, and submitted to the head of department by which the member of staff is ordinarily employed for approval and signature. Payment will be made through the university payroll unless a Schedule D tax reference for the trade has been obtained in writing from the Inland Revenue. Advice can be obtained from the Deputy Chief Accountant in charge of Departmental Accounts.
2. Where the head of department allows private work to be carried on in the department for other departments, written rules should be drawn up and made readily accessible to all members of staff. The cost of any materials provided should be recovered, and care taken that safety procedures are observed. Advice may be obtained from the Internal Audit Section.
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1. The University is required by its Financial Memorandum with HEFCE to have adequate insurance cover.
2. Central policies are held for the insurance of buildings and contents (except library holdings and certain museum collections) against fire, etc. (aircraft, explosion, riot and civil commotion, malicious damage, and earthquake), public and employer's liability, professional indemnity, and fidelity; these are paid for centrally by the University. Additionally, the University's Insurance Section administers policies which include those providing `all risks' cover on scientific and office equipment and computers (see § 25, cl. 7), motor insurance, and travel; the cover needs to be requested by departments, institutions, boards, and committees, which are charged for the premium.
3. There is no cover for personal accident or personal belongings unless the department, institution, board, or committee makes its own arrangements.
4. Advice on insurance matters should be obtained from the Insurance Section in the Central Administration.
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1. The University is a partially exempt registered taxable body and has a legal obligation to account properly for Value Added Tax (VAT) and to make correct returns to the Customs and Excise. Each department, institution, board, or committee is responsible for its own VAT affairs, and all heads of departments and institutions and all boards and committees must submit correct and timely returns of VAT and other legally required data to the Finance Division for inclusion in the University's returns to Customs and Excise.
2. Information on VAT and related matters is available from the circulars produced by the Finance Division, and advice is available from the VAT Officer in the Finance Division.
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1. The Decrees of the University state that the Curators of the University Chest shall pay contributions towards removal and travelling expenses incurred by persons taking up approved posts in the University on such conditions as Council may from time to time prescribe (Ch. VII, Sect. IX).
2. Application must be made to the Secretary of the Chest before expenditure is incurred or authorised by the new post-holder. Advice should be sought from the officer in charge of removal expenses in the Finance Division.
3. Departmental, institutional, board, and committee funds may not be used either to fund the removal expenses of individuals not covered by the scheme operated by the Curators of the University Chest or to supplement the allowances paid by the curators.
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1. Council has empowered the Curators of the University Chest, without reference to Council, to make grants from the General Fund in response to appeals from educational or charitable organisations of direct concern to the University in Oxford or in places where the University owns land or is patron of a benefice, provided that Council is consulted on any case of doubt or difficulty or involving a grant of more than £1,000.
2. The funds of university departments, institutions, boards, and committees may not be used to make charitable donations or grants.
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[Note. A list of the various officers in the Central Administration who are currently responsible for the functions referred to in these regulations is appended to the regulations in the printed booklet containing the regulations which is circulated from time to time to heads of departments and institutions and secretaries of committees and boards. The most recently issued edition of this list is also obtainable from the Secretary of the Chest on request.]
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