Leabhar-làimhe Sabhal Mòr OstaigFinancial Regulations

1. General
Each Head of Service shall consult the Principal with respect to any matter which is liable materially to affect the finances of the College before any provisional or other commitment is incurred.
2. Accounting
2.1 / All accounting procedures and records of the College and its employees shall be determined by the Director of Finance and all accounts and accounting records of the College shall be compiled by the Director of Finance or under his direction.
2.2 / [a]
[b] / The following principles shall be observed in the allocation of accounting duties:
the duties of providing information regarding sums due to or from the College and of calculating, checking and recording these sums shall normally be separated from the duty of collecting or disbursing them;
employees charged with the duty of examining and checking the account of cash transactions shall not themselves be directly engaged in any transactions examined or in any banking transaction directly arising.
3. Purchasing
3.1 / Heads of Service can spend up to a limit of £1,000 in any individual purchase without authorisation from the Director of Finance
3.2 / All income received on behalf of the College must be banked or paid to the College as provided elsewhere in these Regulations.
3.3 / Payments shall be limited to minor items of expenditure and to such other items as the Director of Finance may approve, except for clause 3.1. Payments shall be supported by a receipted voucher to the extent that the Director of Finance may require.
3.4 / Bank credit cards shall only be issued to employees with the specific minuted approval and to the financial limit authorised by the Board of Directors and on the recommendation of the Director of Finance.
3.5 / Employees issued with Bank credit cards shall use these only in accordance with the College Regulations governing their use.
3.6 / All heads of Service are required to work within the rules of the PECOS system and will be provided with full training. The Director of Finance is ultimately responsible for the implementation and continued use of this system.
4. Audit
4.1 / A continuous Internal Audit under the independent control and direction of the Audit Committeeshall be arranged to carry out an examination of accounting, financial and other operations of the College.
4.2 / The Internal Auditor or his authorised representative shall have authority to:
[a]
[b]
[c]
[d] / enter at all reasonable times on any College premises or land;
have access to all records, documents and correspondence relating to any financial and related transaction of the College;
require and receive such explanations as are necessary concerning any matter under examination;
require any employee of the College to produce cash, stores or any other College property under his control.
4.3 / Whenever any matter arises which involves, or is thought to involve, irregularity concerning cash, stores or other property of the College or any suspected irregularity in the exercise of the functions of the College, the Head of Service concerned shall forthwith notify the Director of Finance and/or the Principal who shall take such steps as he considers necessary by way of investigation and report.
5. Banking Arrangements and Cheques
5.1 / All arrangements with the College's Bankers shall be made by the Director of Finance who shall operate such banking accounts, as he may consider necessary.This will include the setting of spend limits for cheques as may be signed by each of the authorised staff identified in 5.3 below.
5.2 / All cheques shall be ordered only on the authority of the Director of Finance who shall make proper arrangements for their safe custody.
5.3 / Cheques drawn on the College's banking accounts, shall be signed by two employees of the College, authorised (in writing) by the Director of Finance to do so. Authorised signatories shall be limited to not more than four members of staff who shall include the Director of Finance.
6. Borrowing
6.1 / All arrangements for borrowing money required by the College for the purposes of its functions shall be made by the Principal on the authority of the Board of Directors.Approval for borrowing must first be sought from the Board following consideration and a written recommendation having been made through the Finance & Estates Committee.
6.2 / The Principal shall be the College's Registrar of Stocks, Bonds and Mortgages and shall maintain records of all borrowing of money by the College.
6.3 / All borrowings shall be effected in the name of the College.
6.4 / All investments of money under its control shall be made by the Principal in the name of the College or in the name of nominees approved by the Board of Directors.
6.5 / All securities, the property of, or in the name of the College or its nominees shall be held in custody to the College's Bankers.
6.6 / All Trust Funds shall, wherever possible, be in the name of the College.
6.7 / All employees, acting as trustees by virtue of their employment, shall deposit all securities etc, relating to the relevant trust, with the Director of Finance unless the deed otherwise provides.
6.8 / The Director of Finance shall ensure the proper and safe custody and control of all Charitable Funds held by the College and shall ensure that all expenditure is in accordance with the conditions of the Trust Deeds, etc.
7. Budgets and Budgetary Control
7.1 / The detailed form of Capital and Revenue Estimates shall be determined by the Director of Finance.
7.2 / It shall be the duty of the Director of Finance to prepare Annual Estimates of Income and Expenditure on Revenue and Capital Accounts and for this purpose Heads of Service shall furnish the Director of Finance with all necessary information regarding the requirements of their Service. These projections will be tracked against revenue at the quarterly meetings of the Finance & Estates Committee by the Director of Finance presenting updated profit and loss account, cashflow and balance sheet figures.
7.3 / Any proposal which would involve the incurring of expenditure by the College not provided for in the relevant Estimates shall be accompanied by a report from the Head of Service concerned identifying the source of the necessary finance.
7.4 / Where it appears that the amount of any head of estimate of approved expenditure or income may vary significantly from that estimated, it shall be the duty of the Head of the Service concerned, after consultation with the Director of Finance to inform the Finance and Estates Committee.
7.5 / The College Accountant shall furnish each Head of Service with periodic statements under each head of approved expenditure of Receipts and Payments and such other information as is appropriate for the purpose of effecting a valid comparison with the Annual Estimated Expenditure of his Service. It shall be the responsibility of the Heads of Service to provide such information as may be required for that purpose and to ensure that the heads of approved Estimates are not overspent and that the expenditure of their Service conforms to the requirements of the Financial Regulations of the College.
8. Income
8.1 / It shall be the duty of the Director of Finance to make adequate financial and accounting arrangements to ensure the proper recording of all monies due to the College and for the proper collection, custody, control and disposal of all cash in all Services of the College.
8.2 / Particulars of all charges to be made for work done and services rendered or goods supplied by the various Services of the College and of all other amounts due to the College shall be promptly notified to the Director of Finance in a form approved by him and all accounts for income due to the College shall be rendered by or under arrangements approved by the Director of Finance.
The Director of Finance shall have the right to inspect any documents or other evidence in this connection as he may consider necessary.
8.3 / All receipt forms, books, tickets and other such items shall be in a form approved by and shall be ordered and supplied to Services by the Director of Finance who shall satisfy himself as to the arrangements for their control.
8.4 / All monies received on behalf of the College in any Service shall be deposited with the Director of Finance or the College's Bankers in accordance with arrangements made by the Director of Finance. No deduction may be made from such money except to the extent that the Director of Finance may specifically authorise.
8.5 / Personal cheques shall not be cashed out of monies held on behalf of the College without the express authority of the Director of Finance.
8.6 / All transfers of College money from one member of staff to another will be evidenced in the records of the Service concerned.
8.7 / Information about any grants or project income – potential or definite – should be provided in full to the Director of Finance for holding in the central grants file. This will allow for more accurate budgetary processes.
9. Insurances
9.1 / The Director of Finance shall effect all insurance cover and negotiate all claims in consultation with other employees where necessary.
9.2 / Heads of Service shall give prompt notification to the Director of Finance of all new risks, properties or vehicles which require to be insured, or of any alterations affecting existing insurances.
9.3 / Heads of Service shall forthwith notify the Director of Finance in writing of any loss, liability or damage or any event likely to lead to a claim, and inform the Police unless otherwise decided.
9.4 / All appropriate employees of the College shall be included in suitable Fidelity Guarantee Insurances.
9.5 / The Director of Finance shall annually, or at such other periods as he may consider necessary, review all insurances in consultation with other Heads of Service as appropriate.
10. Inventories, Stores and Clothing
10.1 / Inventories shall be maintained by all Services and therein shall be recorded an adequate description of furniture, fittings, equipment, plant and machinery, save that the extent to which the College property shall be so recorded and the form in which the inventories shall be kept is to be determined by the appropriate Head of Service with the concurrence of the Director of Finance.
10.2 / Each Head of Service shall be responsible for maintaining an annual check of all items on the Service inventory and for ensuring that the inventory is kept up-to-date.
10.3 / It shall be the duty of the Director of Finance to make adequate arrangements for stock and stores control and costing systems in all appropriate Services of the College.
10.4 / The care and custody of stores and equipment in any Service shall be the responsibility of the Head of that Service who will ensure that stocktaking is carried out at regular intervals, all as agreed with the Director of Finance.
10.5 / No adjustments shall be made to write off deficiencies or to bring surpluses into charge unless authorised by the Finance and Estates Committee on a report by the Head of Service responsible and the Director of Finance.
10.6 / All surplus plant, equipment, furnishing or materials etc, to be disposed of by any Service of the College shall be advertised for sale either by sealed offer or by public auction unless otherwise approved by the Board of Directors.
10.7 / Stocks and Stores held shall not be in excess of normal requirements except in special circumstances with the approval of the Board of Directors.
10.8 / The College's property shall not be removed otherwise than in accordance with the ordinary course of the College's business or used otherwise than for the College's purposes except in accordance with specific directions issued by the Heads of Service concerned.
10.9 / The Heads of Services, shall not later than 15 August in each year:
[a]
[b] / furnish to the Director of Finance inventories of stocks and stores in hand as at 31 July preceding;
furnish to the Director of Finance inventories of furniture, fittings, equipment, plant and machinery in hand as at 31 Julypreceding.
11. Orders for Work, Goods and Services
11.1 / Official orders shall be in a form approved by the Director of Finance andCollege Principaland shall be signed only by the appropriate Head of Service, or an employee authorised by him/her in writing, who shall be responsible for official orders issued from his Service.
11.2 / Official orders shall be issued for all works, goods or services to be supplied to the College except for supplies of public utility services, for periodic payments such as rent and rates, for petty cash purchases or such other exceptions as the Director of Finance may approve.
11.3 / Each order, where appropriate, shall conform with the directions of the Board of Directors with respect to central purchasing and the standardisation of all supplies and materials and shall have regard to ensuring value for money.
11.4 / A copy of each order shall, be supplied to the Director of Finance.
12. Payment of Accounts
12.1 / The Head of Service issuing an order is responsible for the examination, verification and certification of the related invoice(s) and similarly for any other payment vouchers or accounts arising from sources his Service.
12.2 / Before certifying an account the employee shall, except to the extent that the Director of Finance may otherwise determine, have satisfied him/herself that:
[a]
[b]
[c] / the work, goods or services to which the account relates have been received, carried out, examined and approved;
the price, extensions, calculations, trade discount, other allowances, credits and tax are correct;
the relevant expenditure has been properly incurred within the relevant Estimate provision;
[d]
[e] / appropriate entries have been made in inventories, stores records, as required;
the amount has not been previously passed for payment and is a proper liability of the College.
12.3 / Duly certified accounts shall be passed without delay to the Director of Finance who shall examine them to the extent that he considers necessary for which purpose he shall be entitled to make such enquiries and to receive such information and explanations as he may require.
12.4 / Payment shall not be made on duplicate invoices, statement or photocopy invoices unless the Head of Service certifies in writing that the amounts have not previously been paid.
12.5 / Any amendment to an invoice or other document passed for payment shall be made in ink and initialled by the employee making it and state briefly the reasons where they were not self-evident.
12.6 / Heads of Service shall, not later than 15 Augusteach year, furnish the Director of Finance with a certified list of all outstanding expenditure relating to the preceding financial year.
13. Property Assets
13.1 Property
13.1.1 / The Director of Finance shall maintain a register of all Heritable Properties owned by the College, recording in the Holding Account, purposes for which held, location, extent and plan reference, purchase details, particulars of nature of interest and rents payable and particulars of tenancies granted.
13.2 / 13.1.2 / The Director of Finance shall have the custody of all Title Deeds which shall be kept under secure arrangements.
Fixed Assets Register
The Director of Finance shall ensure that a Fixed Assets Register is in place for the College with an annual review and updates managed through the Finance & Estates Committee.
14. Salaries, Wages and Pensions
14.1 / The payment of all salaries, wages, pensions, compensation and other emoluments to all employees or former employees of the College shall be made by the Director of Finance.
14.2 / The Director of Finance shall be responsible for the application of all appropriate wages and salary agreements to employees of the College.
14.3 / The Director of Finance shall be notified by the appropriate Head of Service as soon as possible and in an approved form of all matters affecting the payment of such emoluments and in particular:
[a]
[b]
[c]
[d] / appointments, resignations, dismissals, suspensions, secondments, transfers etc;
absences from duty for sickness or other reason apart from approved leave;
changes in remuneration other than normal increments and pay awards and agreements of a general application;
information necessary to maintain records of service for superannuation, income tax and social security purposes.
14.4 / Appointments of all employees shall be made in accordance with the Regulations of the College and the approved establishment grades and rates of pay.
14.5 / Time records or other pay documents shall be in a form prescribed or approved by the Director of Finance and shall be certified in manuscript by or on behalf of the Head of Service. The names of employees authorised to sign such records shall be sent to the Director of Finance by each Head of Service together with specimen signatures.
15. Security
15.1 / Each Head of Service shall be responsible for maintaining proper security at all times for all fittings, stocks, stores, furniture, equipment, cash, etc, under his control. He shall consult with the Director of Finance in any case where security is thought to defective or where it is considered that special security arrangements may be required.
15.2 / Maximum limits for cash holdings shall be agreed with the Director of Finance and shall not be exceeded without his specific approval.
15.3 / Keys to safes and similar receptacles are to be carried on the person of those responsible at all times. Loss of any such keys must be reported to the Director of Finance forthwith.
15.4 / The Director of Finance shall be responsible for maintaining proper security and privacy as respects information held in the computer installation or for its use.
15.5 / All valuables, being the property of the College, shall be deposited with the Director of Finance for safe custody.
16. Travel, Subsistence etc. Allowances
16.1 / The Director of Finance shall be responsible for the administration and regulation of expenses and allowances to Board Directors and employees of the College.
16.2 / Payments to Board Directors of the College will be made by the Director of Finance upon receipt of the prescribed form duly completed. All claims for a financial year are to be submitted within one month after 31 July.
16.3 / All claims for payment for car allowances, subsistence allowances, travelling and incidental expenses shall be submitted, duly certified in a form approved by the Director of Finance, to him at such regular intervals as are agreed. The names of employees authorised to sign such records shall be sent to the Director of Finance by each Head of Service together with specimen signatures and shall be amended on the occasion of any change.
16.4 / The certification by or on behalf of a Head of Service shall be taken to mean that the certifying employee is satisfied that the journeys were properly authorised, the expenditure properly and necessarily incurred and that the allowances are properly payable.

17. Whistle Blowing Policy