Council Regulations 1 of 2010

• Part 1. Introduction
  
  • 1.1 Purpose
  • 1.2 Application
  • 1.3 Responsibilities
  • 1.4 Financial control
  • 1.5 Authorisation limits
• Part 2. Income
  
  • 2.1 Receipts
  • 2.2 Sales
  • 2.3 Philanthropic Donations
  • 2.4 Philanthropic Support for Research
  • 2.5 Personal Gifts and Hospitality Received
  • 2.6 Other Non-research Income
• Part 3. Expenditure
  
  • 3.1 Purchases
  • 3.2 Staff Appointments and Salaries
  • 3.3 Gifts Made
• Part 4. Research Projects, Grants and Contract
  
  • 4.1 Research Projects
  • 4.2 Other Projects
• Part 5. Assets and Liabilities
  
  • 5.1 Equipment and Stock
  • 5.2 Inventory
  • 5.3 Real Property Not Held as an Investment
  • 5.4 Intellectual Property
• Part 6. Banking and Cash
  
  • 6.1 Cash Handling
  • 6.2 Bank Accounts
  • 6.3 Investment
  • 6.4 Oxford University Endowment Management Limited
  • 6.5 Borrowing
• Part 7. Risk Management and Assurance
  
  • 7.1 Risk Management
  • 7.2 Assurance
  • 7.3 Insurance
• Part 8. Ethical Behaviour
  
  • 8.1 Ethics
  • 8.2 Conflict of Interest
  • 8.3 Personal Use of Assets
  • 8.4 Commercial Activities
  • 8.5 Private Work by Departmental Staff for Other Departments
  • 8.6 Outside Appointments
• Part 9. Legal Advice
• Part 10. Definitions and Abbreviations

1.1 Purpose

These regulations

(1) are made by the Council of the University in accordance with its statutory responsibilities for the control of University finances. When applied, the regulations ensure the proper use of University financial resources, satisfying the University's requirements for accountability, internal control, and the management of financial risk;

(2) fulfil any legal or financial obligations established by HM Revenue & Customs, the Office for Students (OfS), and other government agencies; and

(3) form part of a management framework, designed to ensure that resources are being effectively applied and support the implementation of the University's Strategic Plan.

1.3 Responsibilities

(1) Council

(a) Council has overall responsibility for the financial management of the University's financial resources. The accountability for financial management within the University is delegated from Council to PRAC, the Finance Committee, and divisional boards.

(b) Council is also responsible to OfS for ensuring that the University complies with the OfS Framework, the OfS terms and conditions of funding and related guidance from OfS, and other bodies.

(2) Heads of Unit

Heads of unit must ensure that:

(a) all staff within the unit are made aware of the regulations and of the consequences of failure to comply with them. Failure to comply by a responsible person may be subject to action under the University's disciplinary procedures;

(b) an appropriate system of financial delegated authorities exists that ensures that funds received or spent are properly controlled, and their use monitored;

(c) the unit submits correct and timely returns of information requested for the University's annual budgets (see regulation 1.4 (1) below) and of legally required data to the Finance Division, for inclusion in the University's returns to bodies such as HM Revenue & Customs;

(d) all internal and external audit recommendations approved by the Audit and Scrutiny Committee are completed by the agreed date (see regulation 1.4 (4) below);

(e) either in person or through the offices of the unit administrator, appropriate and adequate arrangements exist to safeguard all assets; that University policies, including the regulations and financial processes, are complied with; and that records are maintained in as complete and accurate a form as possible, with electronic data appropriately backed up using a secure mechanism (see regulation 1.4 (2)-(3) below);

(f) either in person or through the offices of the unit administrator, the Finance Division is supplied with any information necessary to ensure that the University complies with the OfS Framework, the OfS terms and conditions of funding and related guidance from OfS and other bodies, by the dates published by the Chief Financial Officer;

(g) either in person or through the offices of their unit administrator, that internal management systems for the control of finance-related activity in their units are so designed as to allow adequate segregation of duties. Heads of unit must also ensure that access by staff using the University's business systems is restricted to roles and responsibilities appropriate to each user's role. The system roles and responsibilities allocated should provide clearly defined delegated authorities where necessary, and an appropriate balance of controls to prevent and detect errors. Heads of unit must ensure the requirements of the Managing Access to Oracle process are met;

(h) either in person or through the offices of their unit administrator, and in accordance with financial processes, adequate checks of financial transactions are made.

(3) Chief Financial Officer

(a) The Chief Financial Officer will arrange for these regulations and the supporting financial processes to be reviewed periodically and shall approve all financial processes prior to publication.

(b) Acting on behalf of the Chief Financial Officer, the Head of Financial Assurance is responsible for ensuring that all heads of unit are aware of, and know how to, access the latest versions of the regulations and financial processes.

(4) Employees and Other Individuals

All employees, officers of the University and others with responsibility for the administration or management of funds held by the University, must comply with these regulations and meet the financial control requirements of any financial processes made under these regulations.

1.5 Authorisation limits

(1) Authority to Enter into Contracts

(a) Part C of Statute XVI contains the basic rules about who may commit the University in contract. No authority to commit the University extends to any contract that is illegal; or which does not comply with obligations laid down by OfS, HM Revenue & Customs, or other government authorities.

(b) Under Statute XVI, the Vice-Chancellor and the Registrar each have authority in relation to any and every form of contract.

(c) The officers in Table A have authority in relation to the contracts specified alongside their titles.

Table A

(d) The officers in Table A may each delegate their authority to enter the specified contracts on behalf of the University, subject to compliance with section 12 of Statute XVI and, in the case of delegation within the University, to compliance with regulations 1.5 (2) and 3.2 below.

(e) The Vice-Chancellor and the Registrar may also delegate authority to enter contracts to the boards of subsidiary companies, to officers of such companies, and to custodians appointed by such companies.

(f) Council Secretariat keeps a register of all delegations by the officers referred to in Table A.

(g) Heads of units have authority to sign contracts that are in the course of the ordinary business of their unit and which involve only the funds over which they have delegated control, subject to compliance with regulations 1.5 (2) and 3.2. They do not have any authority to enter into any contract which falls within the remits of the officers in Table A above (apart from sales and purchases in the course of the unit's ordinary business). What is ordinary business will vary, but for academic units can be taken to mean teaching and research and their support.

(h) For contracts in the course of ordinary business as defined in (g) above, save in relation to contracts of employment (see regulation 3.2 below), heads of unit may delegate their authority to sign contracts to their staff. Where such delegation of authority is made, the limits and the officer's acceptance must be recorded in written form. A form is available, although other records that summarise departmental delegations adequately (and which are accepted by delegates) are also acceptable. No such delegation shall be operative until a copy of the instrument recording the delegation has been delivered to the delegate and their acceptance received. The person making the delegation must retain these instruments and each unit must maintain a register of all delegations made by staff in that unit.

(i) Documents for sealing must be sent to the LSO.

(2) Financial Limits to Authorise Expenditure Commitments

Tables B, C, D, E, and F below summarise the upper internal limits on authority to commit to levels of expenditure (in contract or otherwise). Table B sets out those limits in respect of non-capital departmental expenditure (the rules concerning the authorisation and approval of research projects are set out in regulation 4.1.) Tables C, D and E set out limits in respect of capital expenditure together with reporting requirements. Table F sets out the limits applicable to the financial write-off of bad debts.

Table B Non-capital departmental expenditure*

Table C Capital expenditure (strategic capital investment, other than centrally run IT projects)

Table D Capital expenditure (within the capital programmes managed by PRAC, other than centrally run IT projects)**

* Delegated authority given to divisional boards and heads of unit is subject to the overall budgetary limits approved by PRAC (see regulation 1.4 (1) above).
** For UAS capital projects, the Services Subcommittee is required to receive all proposals for review. University capital funding is defined as those funds set out in the University's Capital Plan submitted to PRAC and includes funds from the Press and other funding bodies as well as the University Capital Fund.
*** The Property Management Subcommittee of PRAC has a delegated authority level for sales and purchases involving amounts of up to £2m that are for property not held as an investment and are unrelated to capital projects.

Table E Capital expenditure (centrally run IT Projects)

**** The IT Development Fund is determined for a fixed three-year period by Council on the recommendation of PRAC. In respect of the IT Development Fund, CSG’s role is to support PRAC in the development of the overall capital budget, of which the IT Development Fund is part, but not to make recommendations on individual projects within the IT Development Fund. The respective roles of IT Committee, Capital Steering Group and PRAC in respect of the IT Development Fund are set out in the regulations governing those committees.

Table F Bad debts to be written off

2.1 Receipts

(1) In a unit that receives cash or cheques, the head of that unit is responsible for ensuring compliance with the Cash and Banking process governing such receipts.

(2) In a unit that receives card payments, the head of that unit is responsible for ensuring compliance with the Cardholder Data Security Rules and Processes governing such receipts.

(3) All monies receivable by the University are to be regarded as income of the University.

(4) University income includes all monies made available to individuals on the basis of their association with the University (other than pursuant to authorised outside appointments: see regulation 8.6 below).

(5) All University receipts must be paid into a University bank account promptly and be properly accounted for.

2.3 Philanthropic donations

(1) The Gift Registry oversees the management of philanthropic donations, gifts and associated income. Advice should be sought from the Gift Registry where uncertainty exists on the nature of a receipt. All such cash gifts and grants, and all other undertakings to make future payment, must be directed, forwarded or otherwise notified promptly to the Gift Registry with the supporting information prescribed in the Cash Handling and Banking process. The Gift Registry operates a dedicated bank account for the receipt and management of such donations in the name of University of Oxford Development Trust Fund (OUDT).

(2) If such a cash gift or grant exceeds £20,000, or involves future payment, no payment should be accepted, conditions agreed, or formal receipt provided, without prior reference to the Development Office.

(3) The Registrar, the Pro-Vice-Chancellor (Development and External Affairs), the Chief Financial Officer and the Chief Development Officer are authorised to issue a formal receipt on behalf of the University. The Chief Development Officer has delegated this activity to the Gift Registry.

(4) Where necessary, and in consultation with the LSO and the Taxation team, the Development Office will determine: whether a gift should simply be received and acknowledged; whether a University trust regulation should be made; whether an undertaking to make future payments should be made the subject of a binding covenant; whether the commitment to future payment is more in the nature of a nonbinding pledge.

(5) All future commitments shall be made the subject of a binding covenant where decisions on University expenditure have to be made in advance of receipt of the funds.

(6) Where necessary, trust regulations, prepared by secretaries to divisional boards (or their equivalent in the case of budgetary units not in divisions) and taking advice where necessary from the LSO, are approved by the General Purposes Committee of Council, having authority to approve trust regulations under Council Regulations 15 of 2002.

(7) In considering the acceptability or otherwise of any donation, the Development Office must have regard to the guidelines made under Council Regulations 15 of 2002 concerning the Committee to Review Donations and Research Funding. In particular the Development Office must have regard to the possibility that funds may originate from illegal sources. They should exercise particular caution where:

(a) having been offered large donations from persons unknown to them, they do not receive satisfactory replies to the further enquiries they make;

(b) donations are conditional on particular individuals or organisations being used to do work for the University;

(c) offers of donations in cash are made for a certain period of time, during which the University receives the interest, before the capital sum is returned to the donor at the end of the specified period;

(d) offers of donations in foreign currencies are made for a certain period of time, during which the University receives the interest, before the capital sum is returned to the donor in the form of a sterling cheque at the end of the specified period. All such cases must be referred promptly to the Registrar, and advice should be sought from the LSO.

(8) Every proposed donation to the University of £20,000 or more, and cumulative gifts equal to or exceeding, in total, £20,000, must be reviewed under the framework for the acceptability of donations and research funding for a decision on whether its acceptance may breach the guidelines governing the acceptance of gifts by the University (cumulative gifts shall be treated as one gift and a decision taken at the point when the threshold of £20,000 is crossed). This may involve a referral to the Committee to Review Donations and Research Funding. When it is the judgment of the Pro-Vice-Chancellor (Development and External Affairs) that acceptance of any donation may breach those guidelines* the Pro-Vice-Chancellor (Development and External Affairs) must refer the donation to that body for its consideration and decision.

* The guidelines governing the acceptance of gifts by the University are made under the authority of Council Regulations 15 of 2002 concerning the Committee to Review Donations and Research Funding.

2.5 Personal gifts and hospitality received

Gifts and hospitality received must comply with the University Policy on Gifts and Hospitality.

3.1 Purchases

(1) All procurement of goods and services must be in accordance with the Purchase to Pay processes.

(2) Subject to 3.1 (3), all contracts (other than construction-related contracts) for the purchase of goods and/or services to the value of £125,000 or more must be negotiated through the University Purchasing Department. For limits below this, the limits set out in Table G apply (excluding insurance costs which must follow Insurance Section processes). A banker's guarantee is required for payments made in advance that exceed £50,000.

Table G Financial limits applicable to quotations

(3) For all equipment and services expenditure incurred on research awards departments should ensure that each award funder's general and grant-specific terms and conditions for the procurement process are met. Note that these requirements will sometimes go beyond the University's standard requirements outlined above.

(4) All contracts for the purchase of goods and/or services must incorporate one of the University's standard forms of contracts. Where this is not possible, departments may agree to alternative forms of contract provided any "high risk terms" as defined in the Purchase to Pay process have been referred to the Purchasing Department or (for construction-related contracts) Estates Services. Orders placed above £125,000 must be managed using the principles established in the University’s Contract Management Guidelines.

(5) RS is responsible for the authorisation of research-related services. Units are responsible for procuring items on approved research projects. Further requirements for research-related expenditure are included in regulations 4.1-4.2 below.

(6) All contracts for the acquisition of goods and services otherwise than by purchase (for example, leasing arrangements) must be negotiated through the Purchasing Department and notified to the Head of Payment Services.

(7) All procurement through the use of a credit card must comply with the financial control procedures for the card, which are issued by the Chief Cashier. It is the responsibility of the head of unit to agree the chosen credit and transaction limits with the Chief Cashier, and to ensure that the limits are adhered to.

3.3 Gifts and hospitality provided

Gifts and hospitality provided must comply with the University Policy on Gifts and Hospitality.

4.1 Research projects

(1) All financial matters relating to research awards and contracts must be managed in accordance with the University's Managing Research Awards and Projects process.

(2) All applications to outside bodies for research funds must be submitted via RS. Every award of £20,000 or more will be reviewed prior to acceptance under the framework for the acceptability of donations and research funding for a decision on whether its acceptance may breach the guidelines governing the acceptance of gifts by the University (which may involve a referral to the Committee to Review Donations and Research Funding). When it is the judgment of the Pro-Vice-Chancellor (Research) that acceptance of any funding may breach those guidelines the Pro-Vice-Chancellor (Research) must refer the funding to that body for its consideration and decision.

(3) In terms of expenditure incurred on a research award or contract, heads of unit are responsible for ensuring that:

(a) all applications to outside bodies are prepared in accordance with University's Policy on the Costing and Pricing of Research (thereby complying with the Government's Transparent Approach to Costing (TRAC) Guidance and Full Economic Costing (FEC) Guidelines);

(b) the funds awarded by the research funder are sufficient to meet the financial commitments required under the award;

(c) wherever possible, budgetary units should recover the FEC of research undertaken and when it is not possible to recover FEC, units should consider the impact on the overall position of the unit;

(d) the unit has procedures in place to manage compliance with research funder terms and conditions on different awards, and maintains an adequate audit trail.

(4) The application of financial limits on the approval of expenditure on research awards should be made by reference to Table B above.

(5) RS is responsible for negotiating research and research-related contracts and grant conditions on behalf of the University.

(6) The accounting for all research projects undertaken by the University is overseen by Research Accounts in the Finance Division, which must also raise all invoices, claims and financial statements for externally funded research awards.

(7) Principal investigators are responsible to heads of units for ensuring that they comply with these regulations, and that research and expenditure are undertaken in compliance with the terms and conditions of each award funder.

5.1 Equipment and stock

Each budgetary unit is responsible for the stewardship of, and must maintain a register of, all equipment as set out in the Managing Departmental Assets process.

5.3 Real property not held as an investment

(1) The purchase, leasing, or sale of all real property owned or leased by the University, which is not held as an investment, must be authorised by PRAC. In cases where the purchase, lease, or sale involves no more than £2,000,000, and is unrelated to a capital project, this authority has been delegated to the Property Management Subcommittee under Council Regulations 15 of 2002.

(2) All building works on such property require the prior permission of the Director of Estates.

(3) Section 4 of Statute XVI states that no allocation of a site, the area of which exceeds 1,000 square metres, or of a building, the overall floor area of which exceeds 600 square metres, may be made unless approved by resolution of the Congregation of the University.

6.1 Cash handling

All cash within the unit must be managed in line with the Cash and Banking process.

6.3 Investment

(1) The Investment Committee is responsible to Council for the strategic oversight and supervision of all funds invested by, or for the benefit of, the University as set out in Council Regulations 15 of 2002. No budgetary unit or trust fund of the University may invest independently in any securities or other investments.

(2) A cash investment vehicle—the Deposit Pool—is used for

(a) the investment of benefactions and endowments before the making of trust regulations;

(b) surplus cash in trust funds; and

(c) University cash flow balances.

(3) Management of the Deposit Pool is the responsibility of the Chief Financial Officer, under delegated authority from the Finance Committee. Investments in the Deposit Pool are made in line with the Treasury Management Code of Practice and the Treasury Policies and Procedures Manual.

(4) Management of the University's shareholdings in spinout companies is the responsibility of the Chief Financial Officer.

6.5 Borrowing

(1) The University has the capacity of a natural person to manage, deal with and dispose of its property as it thinks fit; and this includes the power to invest, the power to borrow (and enter into contracts relating to derivative products ancillary to borrowings) and the power to charge its property as security.

(2) No borrowing may take place (other than through the operation of an overdraft which is part of regular banking facilities), and no University assets may be offered as security for any borrowing, without the permission of Council. Before sanctioning such activities, Council will obtain and consider proper advice (which for these purposes shall mean, save where expressly authorised by Council to the contrary, advice from a suitably qualified, independent person) as to the necessity for the loan or security, the reasonableness of the terms, and the University's ability to repay.

7.1 Risk management

The University's approach to the management of risk is set out in the Assurance Framework relating to Risk Management. Budgetary units are required to ensure that all risks are appropriately managed, and notified to their parent body as appropriate.

7.3 Insurance

(1) Except in cases where express agreement to the contrary has been reached with the Finance Division, all insurances must be arranged only through the Insurance Section, which will provide all necessary advice.

(2) Items of equipment will be covered for all-risks insurance if they are included within the return. The unit's equipment register must be updated regularly, to include all acquisitions and disposals. Items purchased between annual submissions to the Insurance Section are covered automatically: however, the Insurance Section must be notified at the time of acquisition whenever an individual item exceeds £100,000 in value.

(3) University-owned vehicles may be used for University business purposes only. Use must be authorised in writing by the head of unit, and a record of authorised drivers maintained. The unit must refer to the Insurance Section whenever a driver has six or more points on his or her licence. The Insurance Section must receive immediate notification of all vehicle acquisitions and disposals and hires for a period of fourteen days or more. In addition the unit must submit to the Insurance Section the Annual Insurance Return: Departmental Vehicles.

8.1 Ethics

University employees and others with responsibility for the administration or management of University funds must not use their authority or office for personal gain, and must always seek to uphold the ethical standards, and enhance the reputation, of the University.

8.3 Personal use of assets

Assets belonging to, or leased or loaned to, the University (or otherwise provided to the University for University purposes) may not be removed for personal use without written approval from the head of unit.

8.5 Private work by departmental staff for other departments

(1) When a member of staff, with the approval of his or her head of unit, undertakes private work for other budgetary units involving the use of facilities operated by the unit by which he or she is normally employed, proper invoices in respect of any charges which may be made for such work must be prepared, and submitted for approval and signature to the head of the unit by which the member of staff is ordinarily employed. Payment will be made through the University payroll unless a Schedule D tax reference for the trade has been obtained in writing from HM Revenue & Customs.

(2) Where heads of units allow private work to be carried out for other budgetary units, 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.