GCU Financial Procedures
Status / FinalOwner / Finance
Source location / Finance website
Last endorsed / June 2014
Consultation / EB 19 May 2015 and F&GP 2 June 2015
Endorsed / 2 June 2015
Publication / 3 June 2015
Review Date / June 2016
CONTENTS
PART 1- STRATEGIC LEVEL PROCEDURES
1 BUDGET CONTROL ARRANGEMENTS
1.1 Introduction
1.2 Responsibilities
1.3 Scheme of Delegation
1.4 Specimen Signatures
1.5 Delegated Financial Limits
2 UNIVERSITY PAYROLL BUDGET
3 UNIVERSITY OTHER COSTS BUDGET
4 RESEARCH & OTHER ACTIVITIES BUDGET
5 GENERAL
5.1 Contingency Fund
5.2Budget Carry Forwards
5.3 Investments
5.4 Filling of Vacancies
5.4.1 Outline of Approval Process
5.4.2 Exceptional Circumstances
PART 2- OPERATIONAL LEVEL PROCEDURES
6 FINANCE OPERATIONAL PROCEDURES
7 PROCUREMENT
7.1 General
7.2 Purchases
7.3 SourcingSuppliers
7.4 GCU Procurement Journey
7.4.1 General Information
7.4.2 GCU Procurement Journey Route 1 (Quotations)
7.4.3 GCU Procurement Journey Routes 2 and 3 (Tenders)
7.4.4 EU Regulations
7.4.5 Advertising of Tender Opportunities
7.5 Exceptions Process - Single Source Justification
8 OPERATIONAL SERVICES - ACCOUNTS PAYABLE
8.1 PECOS Purchase Order & Authorisation Process and Exceptions
8.2 Ordering Goods & Services
8.2.1 Process for Ordering Goods & Services
8.2.2 Purchase Order Authorisation Limits
8.2.3 Completion of PECOS Requisition/ PO Form
8.2.4 Receipt of Order
8.2.5 Return of Goods
8.2.6 Invoice Processing
8.2.7 Payments in a Foreign Currency or to a Foreign Bank
8.3 Expenses Claims
8.3.1 General
8.3.2 Expenses Reimbursed by External Parties
8.3.3 Expense Claims Authorisation
8.4 Staff Advances
8.4.1 Staff Advances – Foreign Currency
8.4.2 Staff Advances – Per Diem Rates
8.5Urgent Payments
8.6 University Credit Cards
9 OPERATIONAL SERVICES - ACCOUNTS RECEIVABLE
9.1 Tuition Fee Setting
9.2 Sales Invoices - Commercial
9.3 Tuition Fee Invoices
9.3.1 Students and Sponsors
9.3.2 Tuition Fees for Staff Members Sponsored by GCU
9.4 Credit Notes and Waivers
9.4.1 Commercial
9.4.2 Tuition Fees
9.4.3 Tuition Fee Waivers
9.4.4 Tuition Fee Discounts/Scholarships
9.5 Credit Control & Debt Management
9.5.1 Commercial Debt
9.5.2 Student Debt
9.6 SAAS/SLC
10PAYROLL
10.1 New Appointments
10.2 New Starts
10.3 Leavers
10.4 Amendments
10.5 Overtime
10.6 Additional Payments
10.7Pension Schemes and Auto Enrolment
10.8Advances of Salary
10.9Payroll Deadlines
10.10Self Employed Workers
10.11 Non Statutory Deductions
10.12 Tax Equalisation
10.13 Real Time Information (RTI)
11TREASURY
11.1 Income
11.1.1 Income received
11.1.2 Banking & allocation of income
11.2 Student cheque cashing facilities
11.3 Petty Cash
11.3.1 Limits & Restrictions
11.3.2 Reimbursements of Petty Cash
11.3.3 Cash Floats
11.4 Discrepancies
11.5 Treasury Management
11.5.1 Treasury Management Policy
11.5.2 University Bank Accounts - Payments and Transfers
11.5.3 Authorised Signatories
12 MANAGEMENT ACCOUNTS
12.1 Budget
12.2 Expenditure Codes
12.3 Externally Funded Grants and Contracts
12.3.1 Pre-Award
12.3.2 Post-Award
12.4 Glasgow Caledonian University Company, GCU Academy Ltd and GCU NYC Inc.
12.5 Account Set Up and Use
12.5.1 Initiating Account Set Up
12.5.2 Communication of Account Set Up
12.5.3 Income/Expenditure within Externally Funded Accounts
12.5.4 Project Account Types & Restrictions of Use
12.6 Finance Reports & Financial Discoverer
12.7 Transfers & Coding Corrections
12.7.1 Budget Transfers (Virements)
12.7.2 Expenditure Transfers
12.7.3 Correction of Miscoding
12.8 Inventory Register
12.8.1 General
12.8.2 Non-IT Inventory
12.8.3 IT Inventory
13 INSURANCE
13.1 General
13.2 Procedures for Travel Insurance
13.2.1 Cover provided
13.2.2 Request for claim form
13.3 Use of Own Vehicle on University Business
14 SHORT TERM LOANS/HARDSHIP FUNDS/SAAS CHILDCARE
15STOCK
15.1 Control
15.2 Stocktaking pricing
16FINANCIAL STATEMENTS
16.1 Responsibilities
16.2 Year end accounting returns
17AUDIT
17.1 Introduction
17.2 Irregularities
18 VALUE ADDED TAX
19 BUSINESS GIFTS & HOSPITALITY
20SUBSIDIARY COMPANIES
21 DISCLOSURE OF INTEREST
21.1 Conflicts of Interest with External Parties
21.2 Conflicts of Interest with Internal Parties
22 PRINCIPLES OF CONDUCT
23SECURITY
23.1 Responsibility
23.2 Safeguarding Assets
23.3 Periodic Checks
23.4 Disposals and Losses
23.5 Cash
24 ANTI-BRIBERY ACT
25 LOSSES
25.1 Frauds, Misappropriations & Criminal Activity
25.2 Special Payments
26 MOBILE PHONES
26.1 Principles
26.2 Procedures
27MAIL
28 MANUAL JOURNALS
PART 1 - STRATEGIC LEVEL PROCEDURES
1 BUDGET CONTROL ARRANGEMENTS
1.1 Introduction
In these procedures, we are seeking to increase the University’s effectiveness through:
- Streamlining decision-making
- Allowing greater flexibility on the use of funds
- Motivating and incentivising staff to maximise the return from their funds whilst maintaining sound financial controls.
The University Court oversees the University’s financial affairs, provides governance and promotes University objectives. It has powers and duties conferred on it by statutedischarged through delegation to the Principal and Vice-Chancellor who has responsibility for the management and administration of the whole of the revenue and property of the University.
1.2 Responsibilities
It is the University’s policy to devolve financial accountability by transferring budgetary control responsibilities to members of the Executive,Heads of Departments, and other Budget Holders.
For Academic Departments within Schools, the respectiveDean, supported by the School’s Senior Management Group, is accountable to the Executive for University funds expended.
For Professional Support Departments, the respective Head of Department is accountable to the Executive for University funds expended.
It is the responsibility of the Executive to ensure that their staff are granted levels of delegated authority in line with the Scheme of Delegation as set out within the Delegated Authority Policy. The policy is available from the Finance website.
It is the responsibility of all staff to ensure their delegated authority is used responsibly, appropriately, and in line with the Delegated Authority Policy.
The Executive, as budget holders, are accountable and responsible for all budgets falling under their area of control.However, the Dean or Head of Department may delegate Budget responsibilities for specific Budgets or Projects and make appropriate arrangements to ensure proper financial controls are in place.
Embedded within Budget responsibility is ensuring that account activity is relevant to the intended purpose of accounts and that spend is within Budget limits unless authorised in writing by an appropriate individual/funding body. Use of funds for any purpose other than the intended purpose is prohibited unless prior authorisation has been given by the funding body.
The Disclosures of Interest and Principles of Conduct sections (see Section 21 and Section 22) should be adhered to when authorising delegated authority limits, approving new projects, and committing to, and approving expenditure.
1.3 Scheme of Delegation
The Scheme of Delegation sets out the four levels for authorisation of Delegated Authority Limits. Details of the Scheme of Delegation are contained within the Delegated Authority Policy.
1.4 Specimen Signatures
The Operational Services team maintain a list of specimen signatures of all staff permitted to approve new projects, and to commit and approve expenditure. Schools and Professional Support Departments must provide a Delegated Authority Specimen Signature Form, to Finance when they require a new member of staff to be given delegated authority.
1.5 Delegated Financial Limits
The Delegated Authority Policy contains details of all financial limits for approval of funds, commitment of funds and payment of items.
The actual financial limits that an individual with delegated authority has, is contained within the Scheme of Delegation form completed when the delegated authority is granted.
2 UNIVERSITY PAYROLL BUDGET
Schools and Professional Support Departments are responsible for preparing staffing plans for their respective areas, including a strategy for meeting agreed payroll savings targets.
Virement within Payroll Budget lines will be at the discretion of the appropriate individual as per the Scheme of Delegated Authority after the agreed payroll saving target has been achieved.
Virement to and from the Payroll Budget is permitted where it does not lead to permanent changes to the Payroll Budget.
All payroll virements must be notified to Finance using a Budget Transfer Form.
3 UNIVERSITY OTHER COSTS BUDGET
Other Costs refer to all non-payroll costs.
Schools and Professional Support Departments are responsible for preparing Other Costs budget forecasts for their respective areas.
Budget Holdersmust ensure that total Other Costs Expenditure remains withinthe Total Other Costs Budget at all times.
Virement within Other Costs Budget lines will be at the discretion of the appropriate individual as per the Scheme of Delegated Authority.
4 RESEARCH & OTHER ACTIVITIES BUDGET
Schools are responsible for preparing budget forecasts for externally funded research and other activity projects for their respective areas as part of the annual budget and planning process.
Transfer of funds between budget headings within a project is at the discretion of the awarding body.
The transfer of funds between projects is generally prohibited by awarding bodies.
5 GENERAL
5.1 Contingency Fund
The Executive Board has responsibility for the Budget Contingency Fund. Allocations from this fund will be monitored by the Executive Board through the Monthly Financial Management Report.
5.2 Budget Carry Forwards
Budgets are set annually and allocated funds are expected to be used in the period relating to that budget. Budget carry forwards are not normally permissible.
5.3Investments
Schools and Professional Support Departments should make any case for investment through a Business Case submitted for consideration by the Executive Board. Investment decisions will be taken in the context of the overall financial position of the University and upon the merits of the case for investment. Further support and guidance on this should be sought from the appropriateFinance Business Partner.
5.4 Filling of Vacancies
5.4.1 Outline of Approval Process
The University operates a devolved authority framework, with decision making at the appropriate level where possible. The current staff approval process is significantly devolved. However, a balance must be maintained between autonomy of business units against the overall needs of the University.
A dedicated Resourcing Group (RG) has been set up mainly to oversee all replacement and new staffing requests. Full details can be found on the People Services portal.
5.4.2 Exceptional Circumstances
The Executive Board can vary the approval process by issuing directives through the People Services department which will take into account the circumstances prevailing at the time.
PART 2 - OPERATIONAL LEVEL PROCEDURES
6 FINANCE OPERATIONAL PROCEDURES
Members of staff must comply at all times with the University’s Financial Procedures and Financial Regulations. In particular, Schools and Professional Support Departments must ensure that there is a proper separation of duties (an integral element of financial control), and that staff who play key roles in purchasing and/or carrying out other financial transactions understand and comply with the Financial Procedures and Financial Regulations.
Members of staff are accountable for their part in any financial or related transactions, and in any case must be as open as possible about all the decisions and actions that they take, being prepared to give reasons for their decisions.
As well as the Financial Procedures, staff should be familiar with the following documentslisted below.Senior staffwho sub delegate their authority have a duty to ensure that their staff are aware of the procedures.
The Procedures are not exhaustive and can be found on the Finance website at Policies & Guidelines.
Operational Services
- Travel & Accommodation Policy
- Expenses Policy
- iExpenses Guide
- Staff Advances Policy
- Visa Card Procedures
- Credit Control and Debt Management Policy
- Fees and Refund Policy
- Online Payment System Terms and Conditions
- Online Store Terms and Conditions
Financial Accounting and Tax
- Financial Procedures
- Financial Regulations
- Financial Year End – Guidance
- Financial Misconduct
- Project Accounting Year End - Guidance
- Subsidiary Company Manual
- VAT Manual
- VAT Place of Supply Rules
- Stocktaking Guidance
Management Accounting
- Budget Preparation Guidance
- Business Case Guidance
- Business Case Template Guidance
- Commercial Project Procedures
- Delegated Authority Policy
- European Projects Compliance
- Inventory Register Guide
- Inward Processing Relief Procedures
- KTP Finance Related Procedures
- Risk Management Strategy
- TRAC fEC Guidance
Treasury
- Treasury Management Policy
- Cash Handling and Banking Procedures
- Card Handling Policy
- Petty Cash Guidance
Procurement
Procurementprocedures can be found in the Procurement section of the Finance website:
- Procurement Manual
- Supplier Guide
Finance will be happy to deal with requests for information and/or provide any additional advice that is required.
7 PROCUREMENT
7.1 General
All University staff who are authorised to purchase for Glasgow Caledonian University are required to demonstrate value for money through their procurements of goods and service for the University. The University aims to procure the ‘most economically advantageous’ solution taking account of criteria that reflect qualitative, technical and sustainable aspects of the tender submission as well as price when reaching an award decision.
The University will seek, together with other Higher and Further Education Institutions, sector and national centres of procurement expertise and other public sector bodies, to utilise collaborative arrangements to obtain optimal terms for the purchase of goods and services where such collaboration provides demonstrable benefit to the University.
The Procurement Team will support academic and administrative needs in obtaining goods and services at competitive costs. The Executive, Heads of Departments and Budget Holders are responsible for ensuring that all purchasing activities within their areas operate in accordance with these Procurement Procedures, the University Financial Regulations and are compliant with all applicable legal requirements.
Prior to any member of staff undertaking procurement activity, Section 21 and Section 22 of these Financial Procedures, which outline Disclosure of Interest responsibilities and Code of Conduct requirements, should be read and understood.
The University mirrors its procurement processes to the Scottish Government Procurement Journey.
This journey is intended to support all levels of procurement activities and to help manage the expectations of stakeholders, customers and suppliers whilst facilitating best practice and consistency across the public sector. By following the journey, we help you to manage the procurement process and reduce the risk of challenge.
7.2 Purchases
It is important that the University achieves value for money on all goods/services purchased. To assist in ensuring value for money, the Procurement Team supports the needs of schools and departments, by providing access to contracts and framework agreements which have been developed either within the University or for use more widely by the Higher Education Sector or the Public Sector in general. The Procurement Team also provides assistance and guidance to ensure devolved purchasing activities are carried out in compliance with applicable policies and procedures. The University is a member of Advanced Procurement for Universities and Colleges (APUC) and supports collaborative procurement at sector and national level where this provides demonstrable benefit to the University. The University is a signatory to the Scottish Public Sector Procurement Supplier Charter which encourages fair treatment of all potential suppliers and encourages contract opportunities for SMEs. Procurement activities in the University are aligned to the Scottish Procurement Journey published by the Public Procurement Reform Programme.
Procedures for authority to purchase and financial limits are as set out in the Delegated Authority Policy.
An official purchase order must be raised for all goods and services supplied to the University by external suppliers placed using the PECOS system; the only exceptions are those items which have approval by Finance (see section 8.1).
University Financial Procedures must be applied for all orders placed using the PECOS system (i.e. there must be a segregation of duties between the originator of the order, the requisitioner and the approver of the order). This forms part of the business rules built into PECOS at organisational level.
7.3 Sourcing Suppliers
When a purchase of goods/services is to be made the first thing to determine is whether or not there is already an agreement/contract set up with a supplier for the goods/services required. Details of agreements already in place are available on the Procurement SharePoint site. This includes Buyers Guides for agreements and details of contracts set up by the University and other public sector organisations. If you cannot find a source for the goods or services you require from this list you should contact the Procurement Team for guidance.
Where an agreement/contract is already in place the purchaser must use this. Where a single supplier agreement is in place there is no requirement to obtain any other quotations/tenders for purchasing these goods and the purchaser can go ahead with the order unless specifically instructed in the guidance information relating to further competition for Framework Agreements.
Where an agreement/contract is not already in place the purchaser is required to follow the GCU Procurement Journey.
7.4 GCU Procurement Journey
7.4.1 General Information
A tender is a formal offer from a supplier to supply goods/services. It is submitted in response to a formal invitation to tender.
Quotations are sought where the value of the purchase is such that tendering procedures are not obligatory.
Where an agreement/contract is not already in place with a supplier for the required goods/services, all goods/services purchased on behalf of the University are subject to the following unless otherwise agreed with the Head of Procurement:
Value of Purchase (over 4 years) / Action requiredUnder £10,000
-goods and services
Under £100,000
-works/construction / Ensure value for money has been obtained, normally with a minimum of 2 quotations, and retain evidence to support the decision
Between £10,000 and £50,000
-goods and services
Between £100,000 and £2m
-works/construction / Follow GCU Procurement Journey Route 1
Over £50,000 and below £170,000
-goods and services
Over £2m and below £4.3m
-works/construction / Consult Procurement for GCU Procurement Journey Route 2
Over £170,000
-goods and services
Over £4.3m
-works/construction / Consult Procurement for GCU Procurement Journey Route 3
Services and supplies over the EU threshold (currently £172,514) and work contracts over EU threshold (currently £4,322,012) have a mandatory EU tender process
Guidance and assistance on tender procedures must be obtained from Procurement.
Note: The threshold for products and services for EU purposes is calculated on the value of the product or category purchased over 4 years by the contracting authority (the University) rather than a requirement by one department or school.